COMPENSATION AUTHORITY.

SEC. 1104. COMPENSATION AUTHORITY. Section 123 of the Trade Act of 1974 (19 U.S.C. 2133) is amended— (1) by amending subsection (a) to read as follows: “(a) Whenever— “(1) any action taken under chapter 1 of title II or chapter 1 of title III; or “(2) any judicial or administrative tariff reclassification that becomes final after the date of the enactment of the Omnibus Trade and Competitiveness Act of 1988; increases or imposes any duty or other import restriction, the President— “(A) may enter into trade agreements with foreign countries or instrumentalities for the purpose of granting new concessions as compensation in order to maintain the general level of reciprocal and mutually advantageous concessions; and “(B) may proclaim such modification or continuance of any existing duty, or such continuance of existing duty-free or excise treatment, as he determines to be required or appropriate to carry out any such agreement.”; (2) by amending subsection (b)(2) by— (A) striking out “section 109” and inserting “section 1102(a) of the Omnibus Trade and Competitiveness Act of 1988”, and (B) striking out “section 101” each place it appears and inserting “such section 1102(a)”; (3) by striking out “section 101” in subsection (d) and inserting “section 1102 of the Omnibus Trade and Competitiveness Act of 1988”; and (4) by adding at the end thereof the following new subsection: “(e) The provisions of this section shall apply by reason of action taken under chapter 1 of title III only if the President determines that action authorized under this section is necessary or appropriate to meet the international obligations of the United States.”.