MONITORING AND ENFORCEMENT OF THE AGREEMENT ON GOVERNMENT PROCUREMENT.

SEC. 341. MONITORING AND ENFORCEMENT OF THE AGREEMENT ON GOVERNMENT PROCUREMENT. (a) In General.—Section 305(f)(2) of the Trade Agreements Act of 1979 (19 U.S.C. 2515(f)(2)) is amended— 108 STAT. 4952 (1) in the matter preceding subparagraph (A), by striking “a year” and inserting “the 18 months”, (2) by striking “or” at the end of subparagraph (B), (3) by redesignating subparagraph (C) as subparagraph (D), and (4) by inserting after subparagraph (B), the following new subparagraph: “(C) the procedures result in a determination providing a specific period of time for the other participant to bring its practices into compliance with the Agreement, or”. (b) Sanctions After Dispute Resolution Fails.— (1) Sanctions.—Paragraph (3) of section 305(f) of such Act (19 U.S.C. 2515(0(3)) is amended to read as follows: “(3) Sanctions after dispute resolution fails.— “(A) Failures resulting in sanctions.—If— “(i) within 18 months from the date dispute settlement procedures are initiated with a signatory country pursuant to this section— “(I) such procedures are not concluded, or “(II) the country has not met the requirements of subparagraph (A) or (B) of paragraph (2), or “(ii) the period of time provided for pursuant to paragraph (2)(C) has expired and procedures for suspending concessions under the Agreement have been completed, then the sanctions described in subparagraph (B) shall be imposed. “(B) Sanctions.— “(i) In general.—If subparagraph (A) applies to any signatory country— “(I) the signatory country shall be considered as a signatory not in good standing of the Agreement and the prohibition on procurement contained in section 4 of the Act of March 3, 1933 (41 U.S.C. 10b-1) shall apply to such country, and “(II) the President shall revoke the waiver of discriminatory purchasing requirements granted to the signatory country pursuant to section 301(a). “(ii) Time sanctions are imposed.—Any sanction— “(I) described in clause (i)(1) shall apply from the date that is the last day of the 18-month period described in subparagraph (A)(i) or, in the case of paragraph (2)(C), from the date procedures for suspending concessions under the Agreement have been completed, and “(II) described in clause (i)(II) shall apply beginning on the day after the date described in subclause (I).”. (2) Conforming amendment.—Paragraph (4) of section 305(f) of such Act (19 U.S.C. 2515(0(4)) is amended by striking “subparagraph (A) or (B) of paragraph (3)” and inserting “subclause (I) or (II) of paragraph (3)(B)(i)”. (c) Report to Congress.— 108 STAT. 4953 (1) Section 305(d)(2) of the Trade Agreements Act of 1979 (19 U.S.C. 2515(d)(2)) is amended by adding at the end the following new subparagraphs: “(D) (i) are not signatories to the Agreement; “(ii) fail to apply transparent and competitive procedures to its government procurement equivalent to those in the Agreement; and “(iii) whose products or services are acquired in significant amounts by the United States Government; or “(E) (i) are not signatories to the Agreement; “(ii) fail to maintain and enforce effective prohibitions on bribery and other corrupt practices in connection with government procurement; and “(iii) whose products or services are acquired in significant amounts by the United States Government.”. (2) Section 305(d)(3)(C) of the Trade Agreements Act of 1979 (19 U.S.C. 2515(d)(3)(C)) is amended by adding before the period at the end the following: “, including the failure to maintain and enforce effective prohibitions on bribery and other corrupt practices in connection with government procurement”.