IDENTIFICATION OF TRADE LIBERALIZATION PRIORITIES.

SEC 1302. IDENTIFICATION OF TRADE LIBERALIZATION PRIORITIES. (a) In General.— Chapter 1 of title III of the Trade Act of 1974, as amended by section 1301, is further amended by adding at the end thereof the following new section: “SEC 310. IDENTIFICATION OF TRADE LIBERALIZATION PRIORITIES. “(a) Identification.— “(1) By no later than the date that is 30 days after the date in calendar year 1989, and also the date in calendar year 1990, on which the report required under section 181(b) is submitted to the appropriate Congressional committees, the Trade Representative shall identify United States trade liberalization priorities, including— “(A) priority practices, including major barriers and trade distorting practices, the elimination of which are likely to have the most significant potential to increase 102 STAT. 1177United States exports, either directly or through the establishment of a beneficial precedent; “(B) priority foreign countries that, on the basis of such report, satisfy the criteria in paragraph (2); “(C) estimate the total amount by which United States exports of goods and services to each foreign country identified under subparagraph (B) would have increased during the preceding calendar year if the priority practices of such country identified under subparagraph (A) did not exist; and “(D) submit to the Committee on Finance of the Senate, the Committee on Ways and Means of the House of Representatives, and publish in the Federal Register, a report which lists— “(i) the priority foreign countries identified under subparagraph (B), “(ii) the priority practices identified under subparagraph (A) with respect to each of such priority foreign countries, and “(iii) the amount estimated under subparagraph (C) with respect to each of such priority foreign countries. “(2) In identifying priority foreign countries under paragraph (1)(B), the Trade Representative shall take into account— “(A) the number and pervasiveness of the acts, policies, and practices described in section 181(a)(1)(A), and “(B) the level of United States exports of goods and services that would be reasonably expected from full implementation of existing trade agreements to which that foreign country is a party, based on the international competitive position and export potential of such products and services. “(3) In identifying priority practices under paragraph (1)(A), the Trade Representative shall take into account— “(A) the international competitive position and export potential of United States products and services, “(B) circumstances in which the sale of a small quantity of a product or service may be more significant than its value, and “(C) the measurable medium-term and long-term implications of government procurement commitments to United States exporters. “(b) Initiation of Investigations.— By no later than the date that is 21 days after the date on which a report is submitted to the appropriate Congressional committees under subsection (a)(1)(D), the Trade Representative shall initiate under section 302(b)(1) investigations under this chapter with respect to all of those priority practices identified in such report by reason of subsection (a)(1)(D) for each of the priority foreign countries. The Trade Representative may initiate investigations under section 302(b)(1) with respect to all other priority practices identified under subsection (a)(1)(A). “(c) Agreements for the Elimination of Barriers.— “(1) In the consultations with a priority foreign country identified under subsection (a)(1) that the Trade Representative is required to request under section 303(a) with respect to an investigation initiated by reason of subsection (b), the Trade Representative shall seek to negotiate an agreement which provides for— 102 STAT. 1178 “(A) the elimination of, or compensation for, the priority practices identified under subsection (a)(1)(A) by no later than the close of the 3-year period beginning on the date on which such investigation is initiated, and “(B) the reduction of such practices over a 3-year period with the expectation that United States exports to the foreign country will, as a result, increase incrementally during each year within such 3-year period. “(2) Any investigation initiated under this chapter by reason of subsection (b) shall be suspended if an agreement described in subparagraphs (A) and (B) of paragraph (1) is entered into with the foreign country before the date on which any action under section 301 with respect to such investigation may be required under section 305(a) to be implemented. “(3) If an agreement described in paragraph (1) is entered into with a foreign country before the date on which any action under section 301 with respect to such investigation may be required under section 305(a) to be implemented and the Trade Representative determines that the foreign country is not in compliance with such agreement, the Trade Representative shall continue the investigation that was suspended by reason of such agreement as though such investigation had not been suspended. “(d) Annual Reports.— “(1) On the date on which the report the Trade Representative is required to submit under subsection (a)(1)(D) in calendar year 1990, and on the anniversary of such date in the succeeding calendar years, the Trade Representative shall submit a report which includes— “(A) revised estimates of the total amount determined under subsection (a)(1)(C) for each priority foreign country that has been identified under subsection (a)(1)(B), “(B) evidence that demonstrates, in the form of increased United States exports to each of such priority foreign countries during the previous calendar year— “(i) in the case of a priority foreign country that has entered into an agreement described in subsection (c)(1), substantial progress during each year within the 3-year period described in subsection (c)(1)(A) toward the goal of eliminating the priority practices identified under subsection (a)(1)(A) by the close of such 3-year period, and “(ii) in the case of a country which has not entered into (or has not complied with) an agreement described in subsection (c)(1), the elimination of such practices, and “(C) to the extent that the evidence described in subparagraph (B) cannot be provided, any actions that have been taken by the Trade Representative under section 301 with respect to such priority practices of each of such foreign countries. “(2) The Trade Representative may exclude from the requirements of paragraph (1) in any calendar year beginning after 1993 any foreign country that has been identified under subsection (a)(1)(A) if the evidence submitted under paragraph (1)(B) in the 2 previous reports demonstrated that all the priority prac-102 STAT. 1179tices identified under subsection (a)(1)(A) with respect to such foreign country have been eliminated.”. (b) Conforming Amendment.— The table of contents for the Trade Act of 1974 is amended by inserting after the item relating to section 309 the following new item: “Sec. 310. Identification of trade liberalization priorities.”.