POSITIVE ADJUSTMENT BY INDUSTRIES INJURED BY IMPORTS.

SEC. 1401. POSITIVE ADJUSTMENT BY INDUSTRIES INJURED BY IMPORTS. (a) In General.— Chapter 1 of title II of the Trade Act of 1974 (19 U.S.C. 2251–2253) is amended to read as follows: “CHAPTER 1— POSITIVE ADJUSTMENT BY INDUSTRIES INJURED BY IMPORTS “SEC. 201. ACTION TO FACILITATE POSITIVE ADJUSTMENT TO IMPORT COMPETITION. “(a) Presidential Action.— If the United States International Trade Commission (hereinafter referred to in this chapter as the ‘Commission’) determines under section 202(b) that an article is being imported into the United States in such increased quantities as to be a substantial cause of serious injury, or the threat thereof, to the domestic industry producing an article like or directly competitive with the imported article, the President, in accordance with this chapter, shall take all appropriate and feasible action within his power which the President determines will facilitate efforts by the domestic industry to make a positive adjustment to import competition and provide greater economic and social benefits than costs. “(b) Positive Adjustment to Import Competition.— “(1) For purposes of this chapter, a positive adjustment to import competition occurs when— “(A) the domestic industry— “(i) is able to compete successfully with imports after actions taken under section 204 terminate, or “(ii) the domestic industry experiences an orderly transfer of resources to other productive pursuits; and “(B) dislocated workers in the industry experience an orderly transition to productive pursuits. “(2) The domestic industry may be considered to have made a positive adjustment to import competition even though the industry is not of the same size and composition as the industry at the time the investigation was initiated under section 202(b). “SEC. 202. INVESTIGATIONS. DETERMINATIONS, AND RECOMMENDATIONS BY COMMISSION. “(a) Petitions and Adjustment Plans.— “(1) A petition requesting action under this chapter for the purpose of facilitating positive adjustment to import competition may be filed with the Commission by an entity, including a trade association, firm, certified or recognized union, or group of workers, which is representative of an industry. “(2) A petition under paragraph (1)— “(A) shall include a statement describing the specific purposes for which action is being sought, which may include facilitating the orderly transfer of resources to more productive pursuits, enhancing competitiveness, or other means of aqjustment to new conditions of competition; and 102 STAT. 1226 “(B) may— “(i) subject to subsection (d)(1)(C)(i), request provisional relief under subsection (d)(1); or “(ii) request, or at any time before the 150th day after the date of filing be amended to request, provisional relief under subsection (d)(2). “(3) Whenever a petition is filed under paragraph (1), the Commission shall promptly transmit copies of the petition to the Office of the United States Trade Representative and other Federal agencies directly concerned. “(4) A petitioner under paragraph (1) may submit to the Commission and the United States Trade Representative (here-after in this chapter referred to as the ‘Trade Representative’), either with the petition, or at any time within 120 days after the date of filing of the petition, a plan to facilitate positive adjustment to import competition. “(5) (A) Before submitting an adjustment plan under paragraph (4), the petitioner and other entities referred to in paragraph (1) that wish to participate may consult with the Trade Representative and the officers and employees of any Federal agency that is considered appropriate by the Trade Representative, for purposes of evaluating the adequacy of the proposals being considered for inclusion in the plan in relation to specific actions that may be taken under this chapter. “(B) A request for any consultation under subparagraph (A) must be made to the Trade Representative. Upon receiving such a request, the Trade Representative shall confer with the petitioner and provide such assistance, including publication of appropriate notice in the Federal Register, as may be practicable in obtaining other participants in the consultation. No consultation may occur under subparagraph (A) unless the Trade Representative, or his delegate, is in attendance. “(6) (A) In the course of any investigation under subsection (b), the Commission shall seek information (on a confidential basis, to the extent appropriate) on actions being taken, or planned-to be taken, or both, by firms and workers in the industry to make a positive adjustment to import competition. “(B) Regardless whether an adjustment plan is submitted under paragraph (4) by the petitioner, if the Commission makes an affirmative determination under subsection (b), any— “(i) firm in the domestic industry; “(ii) certified or recognized union or group of workers in the domestic industry; “(iii) State or local community; “(iv) trade association representing the domestic industry; or “(v) any other person or group of persons, may, individually, submit to the Commission commitments regarding actions such persons and entities intend to take to facilitate positive adjustment to import competition. “(7) Nothing in paragraphs (5) and (6) may be construed to provide immunity under the antitrust laws. “(b) Investigations and Determinations by Commission.— “(1) (A) Upon the filing of a petition under subsection (b), the request of the President or the Trade Representative, the resolution of either the Committee on Ways and Means of the House of Representatives or the Committee on Finance of the Senate, 102 STAT. 1227or on its own motion, the Commission shall promptly make an investigation to determine whether an article is being imported into the United States in such increased quantities as to be a substantial cause of serious injury, or the threat thereof, to the domestic industry producing an article like or directly competitive with the imported article. “(B) For purposes of this section, the term ‘substantial cause’ means a cause which is important and not less than any other cause. “(2) (A) Except as provided in subparagraph (B), the Commission shall make the determination under paragraph (1) within 120 days after the date on which the petition is filed, the request or resolution is received, or the motion is adopted, as the case may be. “(B) If before the 100th day after a petition is filed under subsection (a)(1) the Commission determines that the investigation is extraordinarily complicated, the Commission shall make the determination under paragraph (1) within 150 days after the date referred to in subparagraph (A). “(3) (A) If the Commission makes an affirmative determination under paragraph (1) and the petitioner alleges the existence of critical circumstances, the Commission shall make a determination regarding such allegation— “(i) on or before the 120th day after the day on which the petition was filed, if such allegation was included in the petition on or before the 90th day after such filing date; or “(ii) on or before the date the report required under subsection (f) regarding the determination is submitted to the President, if such allegation was included in the petition after the 90th day, and on or before the 150th day, sifter such filing date. “(B) For purposes of this paragraph and subsection (d)(2), critical circumstances exist if a substantial increase in imports (either actual or relative to domestic production) over a relatively short period of time has led to circumstances in which a delay in taking action under this chapter would cause harm that would significantly impair the effectiveness of such action. “(4) In the course of any proceeding under this subsection, the Commission shall, after reasonable notice, hold public hearings and shall afford interested parties and consumers an opportunity to be present, to present evidence, to comment on the adjustment plan, if any, submitted under subsection (a), and to be heard at such hearings. “(c) Factors Applied in Making Determinations.— “(1) In making determinations under subsection (b), the Commission shall take into account all economic factors which it considers relevant, including (but not limited to)— “(A) with respect to serious injury— “(i) the significant idling of productive facilities in the domestic industry, “(ii) the inability of a significant number of firms to carry out domestic production operations at a reason-able level of profit, and “(iii) significant unemployment or underemployment within the domestic industry; “(B) with respect to threat of serious iiyury— 102 STAT. 1228 “(i) a decline in sales or market share, a higher and growing inventory (whether maintained by domestic producers, importers, wholesalers, or retailers), and a downward trend in production, profits, wages, or employment (or increasing underemployment) in the domestic industry, “(ii) the extent to which firms in the domestic industry are unable to generate adequate capital to finance the modernization of their domestic plants and equipment, or are unable to maintain existing levels of expenditures for research and development, “(iii) the extent to which the United States market is the focal point for the diversion of exports of the article concerned by reason of restraints on exports of such article to, or on imports of such article into, third country markets; and “(C) with respect to substantial cause, an increase in imports (either actual or relative to domestic production) and a decline in the proportion of the domestic market supplied by domestic producers. “(2) In making determinations under subsection (b), the Commission shall— “(A) consider the condition of the domestic industry over the course of the relevant business cycle, but may not aggregate the causes of declining demand associated with a recession or economic downturn in the United States economy into a single cause of serious injury or threat of injury; and “(B) examine factors other than imports which may be a cause of serious injury, or threat of serious injury, to the domestic industry. The Commission shall include the results of its examination under subparagraph (B) in the report submitted by the Commission to the President under subsection (e). “(3) The presence or absence of any factor which the Commission is required to evaluate in subparagraphs (A) and (B) of paragraph (1) is not necessarily dispositive of whether an article is being imported into the United States in such increased quantities as to be a substantial cause of serious injury, or the threat thereof, to the domestic industry. “(4) For purposes of subsection (b), in determining the domes-tic industry producing an article like or directly competitive with an imported article, the Commission— “(A) to the extent information is available, shall, in the case of a domestic producer which also imports, treat as part of such domestic industry only its domestic production; “(B) may, in the case of a domestic producer which produces more than one article, treat as part of such domes-tic industry only that portion or subdivision of the producer which produces the like or directly competitive article; and “(C) may, in the case of one or more domestic producers which produce a like or directly competitive article in a major geographic area of the United States and whose production facilities in such area for such article constitute a substantial portion of the domestic industry in the United States and primarily serve the market in such area, and where the imports are concentrated in such area, treat as 102 STAT. 1229such domestic industry only that segment of the production located in such area. “(5) In the course of any proceeding under this subsection, the Commission shall investigate any factor which in its judgment may be contributing to increased imports of the article under investigation. Whenever in the course of its investigation the Commission has reason to believe that the increased imports are attributable in part to circumstances which come within the purview of subtitles A and B of title VII or section 337 of the Tariff Act of 1930, or other remedial provisions of law, the Commission shall promptly notify the appropriate agency so that such action may be taken as is otherwise authorized by such provisions of law. “(6) For purposes of this subsection: “(A) The term ‘domestic industry’ includes producers located in the United States insular possession. “(B) The term ‘significant idling of productive facilities’ includes the closing of plants or the underutilization of production capacity. “(d) Provisional Relief.— “(1) (A) An entity representing a domestic industry that produces a perishable agricultural product that is like or directly competitive with an imported perishable agricultural product may file a request with the Trade Representative for the monitoring of imports of that product under subparagraph (B). Within 21 days after receiving the request, the Trade Representative shall determine if— “(i) the imported product is a perishable agricultural product; and “(ii) there is a reasonable indication that such product is being imported into the United States in such increased quantities as to be, or likely to be, a substantial cause of serious injury, or the threat thereof, to such domestic industry. “(B) If the determinations under subparagraph (A) (i) and (ii) are affirmative, the Trade Representative shall request, under section 332(g) of the Tariff Act of 1930, the Commission to monitor and investigate the imports concerned for a period not to exceed 2 years. The monitoring and investigation may include the collection and analysis of information that would expedite an investigation under subsection (b). “(C) If a petition filed under subsection (a)— “(i) alleges injury from imports of a perishable agricultural product that has been, on the date the allegation is included in the petition, subject to monitoring by the Commission under paragraph (2) for not less than 90 days; and “(ii) requests that provisional relief be provided under this subsection with respect to such imports; the Commission shall, not later than the 21st day after the day on which the request was filed, make a determination, on the basis of available information, whether increased imports (either actual or relative to domestic production) of the perishable agricultural product are a substantial cause of serious injury, or the threat thereof, to the domestic industry producing a like or directly competitive perishable product, and whether either— 102 STAT. 1230 “(I) the serious injury is likely to be difficult to repair by reason of perishability of the like or directly competitive agricultural product; or “(II) the serious injury cannot be timely prevented through investigation under subsection (b) and action under section 203. “(D) At the request of the Commission, the Secretary of Agriculture shall promptly provide to the Commission any relevant information that the Department of Agriculture may have for purposes of making determinations and findings under this subsection. “(E) Whenever the Commission makes an affirmative preliminary determination under subparagraph (C), the Commission shall find the amount or extent of provisional relief that is necessary to prevent or remedy the serious injury or threat thereof. In carrying out this subparagraph, the Commission shall give preference to increasing or imposing a duty on imports, if such form of relief is feasible and would prevent or remedy the serious injury or threat thereof. “(F) The Commission shall immediately report to the President its determination under subparagraph (C) and, if the determination is affirmative, the finding under subparagraph (E). “(G) Within 7 days after receiving a report from the Commission under subparagraph (F) containing an affirmative determination, the President, if he considers provisional relief to be warranted and after taking into account the finding of the Commission under subparagraph (E), shall proclaim such provisional relief that the President considers necessary to prevent or remedy the serious injury or threat thereof. “(2) (A) The Commission shall, at the same time it makes an affirmative determination under subsection (b)(3)(A) regarding the existence of critical circumstances, find the amount or extent of provisional relief that is appropriate to address such critical circumstances. The Commission shall immediately report to the President each such affirmative determination and finding. “(B) After receiving a report from the Commission under subparagraph (A), the President shall, within 7 days after the day on which the report is received and after taking into account the finding of the Commission under subparagraph (A), proclaim such provisional relief, if any, that the President considers appropriate to address the critical circumstances. “(3) If provisional relief is proclaimed under paragraph (1)(G) or (2)(B) in the form of an increase, or the imposition of, a duty, the President shall order the suspension of liquidation of all imported articles subject to the affirmative determination under paragraph (1)(C) or subsection (b)(1), as the case may be, that are entered, or withdrawn from warehouse for consumption, on or after the date of the determination. “(4) (A) Any provisional relief implemented under this subsection with respect to an imported article shall terminate on the day on which— “(i) if such relief was proclaimed under paragraph (1)(G), the Commission makes a negative determination under section 203(a) regarding injury or the threat thereof by imports of such article; 102 STAT. 1231 “(ii) action described in section 203(a)(3) (A) or (C) takes effect under section 203 with respect to such article; “(iii) a decision by the President not to take any action under section 203(a) with respect to such article becomes final; or “(iv) whenever the President determines that, because of changed circumstances, such relief is no longer warranted. “(B) Any suspension of liquidation ordered under paragraph (3) with respect to an imported article shall terminate on the day on which provisional relief is terminated under subparagraph (A) with respect to the article. “(C) If an increase in, or the imposition of, a duty that is proclaimed under section 203 on an imported article is different from a duty increase or imposition that was proclaimed for such an article under this section, then the entry of any such article for which liquidation was suspended under paragraph (3) shall be liquidated at whichever of such rates of duty is lower. “(D) If provisional relief in the form of an increase in, or the imposition of, a duty is proclaimed under this section with respect to an imported article and neither a duty increase nor a duty imposition is proclaimed under section 203 regarding such article, the entry of any such article for which liquidation was suspended under paragraph (3) may be liquidated at the rate of duty that applied before provisional relief was provided. “(5) For purposes of this subsection: “(A) A perishable agricultural product is any agricultural article, including livestock, regarding which the Trade Representative considers action under this section to be appropriate after taking into account— “(i) whether the article has— “(I) a short shelf life, “(II) a short growing season, or “(III) a short marketing period, “(ii) whether the article is treated as a perishable product under any other Federal law or regulation; and “(iii) any other factor considered appropriate by the Trade Representative. The presence or absence of any factor which the Trade Representative is required to take into account under clause (i), (ii), or (iii) is not necessarily dispositive of whether an article is a perishable agricultural product. “(B) The term ‘provisional relief means— “(i) any increase in, or imposition of, any duty; “(ii) any modification or imposition of any quantitative restriction on the importation of an article into the United States; or “(iii) any combination of actions under clauses (i) and (ii). “(e) Commission Recommendations.— “(1) If the Commission makes an affirmative determination under subsection (b)(1), the Commission shall also recommend the action that would address the serious injury, or threat thereof, to the domestic industry and be most effective in facilitating the efforts of the domestic industry to make a positive adjustment to import competition. “(2) The Commission is authorized to recommend under paragraph (1)— 102 STAT. 1232 “(A) an increase in, or the imposition of, any duty on the imported article; “(B) a tariff-rate quota on the article; “(C) a modification or imposition of any quantitative restriction on the importation of the article into the United States; “(D) one or more appropriate adjustment measures, including the provision of trade adjustment assistance under chapter 2; or “(E) any combination of the actions described in subparagraphs (A) through (D). “(3) The Commission shall specify the type, amount, and duration of the action recommended by it under paragraph (1). • The limitations set forth in section 203(e) are applicable to the action recommended by the Commission. “(4) In addition to the recommendation made under paragraph (1), the Commission may also recommend that the President— “(A) initiate international negotiations to address the underlying cause of the increase in imports of the article or otherwise to alleviate the injury or threat; or “(B) implement any other action authorized under law that is likely to facilitate positive adjustment to import competition. “(5) For purposes of making its recommendation under this subsection, the Commission shall— “(A) after reasonable notice, hold a public hearing at which all interested parties shall be provided an opportunity to present testimony and evidence; and “(B) take into account— “(i) the form and amount of action described in paragraph (2) (A), (B), and (C) that would prevent or remedy the injury of threat thereof, “(ii) the objectives and actions specified in the adjustment plan, if any, submitted under subsection (a)(4), “(iii) any individual commitment that was submitted to the Commission under subsection (a)(6), “(iv) any information available to the Commission concerning the conditions of competition in domestic and world markets, and likely developments affecting such conditions during the period for which action is being requested, and “(v) whether international negotiations may be constructive to address the injury or threat thereof or to facilitate adjustment. “(6) Only those members of the Commission who agreed to the affirmative determination under subsection (b) are eligible to vote on the recommendation required to be made under paragraph (1) or that may be made under paragraph (3). Members of the Commission who did not agree to the affirmative determination may submit, in the report required under subsection (f), separate views regarding what action, if any, should be taken under section 203. “(f) Report by Commission.— “(1) The Commission shall submit to the President a report on each investigation undertaken under subsection (b). The report shall be submitted at the earliest practicable time, but not later 102 STAT. 1233than 180 days after the date on which the petition is filed, the request or resolution is received, or the motion is adopted, as the case may be. “(2) The Commission shall include in the report required under paragraph (1) the following: “(A) The determination made under subsection (b) and an explanation of the basis for the determination. “(B) If the determination under subsection (b) is affirmative, the recommendations for action made under subsection (e) and an explanation of the basis for each recommendation. “(C) Any dissenting or separate views by members of the Commission regarding the determination and any recommendation referred to in subparagraphs (A) and (B). “(D) The findings required to be included in the report under subsection (c)(2). “(E) A copy of the adjustment plan, if any, submitted under section 201(b)(4). “(F) Commitments submitted, and information obtained, by the Commission regarding steps that firms and workers in the domestic industry are taking, or plan to take, to facilitate positive adjustment to import competition. “(G) A description of— “(i) the short- and long-term effects that implementation of the action recommended under subection (e) is likely to have on the petitioning domestic industry, on other domestic industries, and on consumers, and “(ii) the short- and long-term effects of not taking the recommended action on the petitioning domestic industry, its workers and the communities where production facilities of such industry is located, and on other domestic industries. “(3) The Commission, after submitting a report to the President under paragraph (1), shall promptly make it available to the public (with the exception of the confidential information obtained under section 202(a)(6)(B) and any other information which the Commission determines to be confidential) and cause a summary thereof to be published in the Federal Register. “(g) Expedited Consideration of Adjustment Assistance Petitions.— If the Commission makes an affirmative determination under subsection (b)(1), the Commission shall promptly notify the Secretary of Labor and the Secretary of Commerce of the determination. After receiving such notification— “(1) the Secretary of Labor shall give expedited consideration to petitions by workers in the domestic industry for certification for eligibility to apply for adjustment assistance under chapter 2; and “(2) the Secretary of Commerce shall give expedited consideration to petitions by firms in the domestic industry for certification of eligibility to apply for adjustment assistance under chapter 3. “(h) Limitations on Investigations.— “(1) Except for good cause determined by the Commission to exist, no investigation for the purposes of this section shall be made with respect to the same subject matter as a previous investigation under this chapter, unless 1 year has elapsed since 102 STAT. 1234the Commission made its report to the President of the results of such previous investigation. “(2) If an article was the subject of an investigation under this section that resulted in any action described in section 203(a)(3) (A), (B), (C), or (E) being taken under section 203, no other investigation under this chapter may be initiated with respect to such article while such action is in effect or during the period beginning on the date on which such action terminates that is equal in duration to the period during which such action was in effect. “SEC. 203. ACTION BY PRESIDENT AFTER DETERMINATION OF IMPORT INJURY. “(a) In General.— “(1) (A) After receiving a report under section 202(f) containing an affirmative finding regarding serious injury, or the threat thereof, to a domestic industry, the President shall take all appropriate and feasible action within his power which the President determines will facilitate efforts by the domestic industry to make a positive adjustment to import competition and provide greater economic and social benefits than costs. “(B) The action taken by the President under subparagraph (A) shall be to such extent, and for such duration, subject to subsection (e)(1), that the President determines to be appropriate and feasible under such subparagraph. “(C) The interagency trade organization established under section 242(a) of the Trade Expansion Act of 1962 shall, with respect to each affirmative determination reported under section 202(f), make a recommendation to the President as to what action the President should take under subparagraph (A). “(2) In determining what action to take under paragraph (1), the President shall take into account— “(A) the recommendation and report of the Commission; “(B) the extent to which workers and firms in the domes-tic industry are— “(i) benefitting from adjustment assistance and other manpower programs, and “(ii) engaged in worker retraining efforts; “(C) the efforts being made, or to be implemented, by the domestic industry (including the efforts included in any adjustment plan or commitment submitted to the Commission under section 201(b)) to make a positive adjustment to import competition; “(D) the probable effectiveness of the actions authorized under paragraph (3) to facilitate positive adjustment to import competition; “(E) the short- and long-term economic and social costs of the actions authorized under paragraph (3) relative to their short- and long-term economic and social benefits and other considerations relative to the position of the domestic industry in the United States economy; “(F) other factors related to the national economic interest of the United States, including, but not limited to— “(i) the economic and social costs which would be incurred by taxpayers, communities, and workers if import relief were not provided under this chapter, 102 STAT. 1235 “(ii) the effect of the implementation of actions under this section on consumers and on competition in domestic markets for articles, and “(iii) the impact on United States industries and firms as a result of international obligations regarding compensation; “(G) the extent to which there is diversion of foreign exports to the United States market by reason of foreign restraints; “(H) the potential for circumvention of any action taken under this section; “(I) the national security interests of the United States; and “(J) the factors required to be considered by the Commission under section 202(e)(5). “(3) The President may, for purposes of taking action under paragraph (1)— “(A) proclaim an increase in, or the imposition of, any duty on the imported article; “(B) proclaim a tariff-rate quota on the article; “(C) proclaim a modification or imposition of any quantitative restriction on the importation of the article into the United States; “(D) implement one or more appropriate adjustment measures, including the provision of trade adjustment assistance under chapter 2; “(E) negotiate, conclude, and carry out orderly marketing agreements with foreign countries limiting the export from foreign countries and the import into the United States of such article; “(F) proclaim procedures necessary to allocate among importers by the auction of import licenses quantities of the article that are permitted to be imported into the United States; “(G) initiate international negotiations to address the underlying cause of the increase in imports of the article or otherwise to alleviate the injury or threat thereof; “(H) submit to Congress legislative proposals to facilitate the efforts of the domestic industry to make a positive adjustment to import competition; “(I) take any other action which may be taken by the President under the authority of law and which the President considers appropriate and feasible for purposes of paragraph (1); and “(J) take any combination of actions listed in subparagraphs (A) through (I). “(4) The President shall take action under paragraph (1) within 60 days after receiving a report from the Commission containing an affirmative determination under section 202(b)(1) (or a determination under such section which he considers to be an affirmative determination by reason of section 330(d) of the Tariff Act of 1930); except that if a supplemental report is requested under paragraph (5), the President shall take action under paragraph (1) within 30 days after the supplemental report is received. “(5) The President may, within 15 days after the date on which he receives a report from the Commission containing an 102 STAT. 1236affirmative determination under section 202(b)(1), request additional information from the Commission. The Commission shall, as soon as practicable but in no event more than 30 days after the date on which it receives the President’s request, furnish additional information with respect to the industry in a supplemental report “(b) Reports to Congress.— “(1) On the day the President takes action under subsection (a)(1), the President shall transmit to Congress a document describing the action and the reasons for taking the action. If the action taken by the President differs from the action required to be recommended by the Commission under section 202(e)(1), the President shall state in detail the reasons for the difference. “(2) On the day on which the President decides that there is no appropriate and feasible action to take under subsection (a)(1) with respect to a domestic industry, the President shall transmit to Congress a document that sets forth in detail the reasons for the decision. “(3) On the day on which the President takes any action under subsection (a)(1) that is not reported under paragraph (1), the President shall transmit to Congress a document setting forth the action being taken and the reasons therefor. “(c) Implementation of Action Recommended by Commission.— If the President reports under subsection (b)(1) or (2) that— “(1) the action taken under subsection (a)(1) differs from the action recommended by the Commission under section 202(e)(1); or “(2) no action will be taken under subsection (a)(1) with respect to the domestic industry; the action recommended by the Commission shall take effect (as provided in subsection (c)(2)) upon the enactment of a joint resolution described in section 152(a)(1)(A) within the 90-day period beginning on the date on which the document referred to in subsection (b)(1) or (2) is transmitted to the Congress. “(d) Time for Taking Effect of Certain Relief.— “(1) Except as provided in paragraph (2), any action described in subsection (a)(3)(A), (B), or (C), that is taken under subsection (a)(1) shall take effect within 15 days after the day on which the President proclaims the action, unless the President announces, on the date he decides to take such action, his intention to negotiate one or more orderly marketing agreements in which case the action under subsection (a)(3)(A), (B), or (C) shall be proclaimed and take effect within 90 days after the date of such decision. “(2) If the contingency set forth in subsection (c) occurs, the President shall, within 30 days after the date of the enactment of the joint resolution referred to in such subsection, proclaim the action recommended by the Commission under section 202(e)(1). “(e) Limitations on Actions.— “(1) (A) The duration of the period in which action taken under this section may be in effect shall not exceed 8 years. “(B) If the initial effective period for action taken under this section is less than 8 years, the President may extend the effective period once, but the aggregate of the initial period and the extension may not exceed 8 years. 102 STAT. 1237 “(2) Action may be taken under subsection (a)(1)(A), (B), or (C) or under section 202(d)(2)(B) only to the extent the cumulative impact of such action does not exceed the amount necessary to prevent or remedy the serious injury or threat thereof. “(3) No action may be taken under this section which would increase a rate of duty to (or impose a rate) which is more than 50 percent ad valorem above the rate (if any) existing at the time the action is taken. “(4) Any action taken under this section proclaiming a quantitative restriction shall permit the importation of a quantity or value of the article whicn is not less than the quantity or value of such article imported into the United States during the most recent period that is representative of imports of such article. “(5) To the extent feasible, an effective period of more than 3 years for an action described in subsection (a)(3)(A), (B), or (Q shall be phased down during the period in which the action is taken, with the first reduction taking effect no later than the close of the day which is 3 years after the day on which such action first takes effect. “(6) (A) The suspension, pursuant to any action taken under this section of— “(i) item 806.30 or 807.00 of the Tariff Schedules of the United States with respect to an article; and “(ii) the designation of any article as an eligible article for purposes of title V; shall be treated as an increase in duty. “(B) No proclamation providing for a suspension referred to in subparagraph (A) with respect to any article may be made by the President, nor may any such suspension be recommended by the Commission under section 203(c), unless the Commission, in addition to making an affirmative determination under section 202(b)(1), determines in the course of its investigation under section 203(a) that the serious injury, or threat thereof, substantially caused by imports to the domestic industry producing a like or directly competitive article results from, as the case may be— “(A) the application of item 806.30 or item 807.00; or “(B) the designation of the article as an eligible article for the purposes of title V. “(f) Orderly Marketing and Other Agreements.— “(1) If the President takes action under this section other than the implemention of orderly marketing agreements, the President may, after such action takes effect, negotiate orderly marketing agreements with foreign countries, and may, after such agreements take effect, suspend or terminate, in whole or in part, any action previously taken. “(2) If an orderly marketing agreement implemented under subsection (a) is not effective, the President may, consistent with the limitations contained in subsection (e), take additional action under subsection (a). “(g) Regulations.— “(1) The President shall by regulation provide for the efficient and fair administration of all actions taken for the purpose of providing import relief under this chapter. “(2) In order to carry out an orderly marketing or other international agreement concluded under this chapter, the President may prescribe regulations governing the entry or 102 STAT. 1238withdrawal from warehouse of articles covered by such agreement. In addition, in order to carry out any orderly marketing agreement concluded under this chapter with one or more countries accounting for a major part of United States imports of the article covered by such agreements, including imports into a major geographic area of the United States, the President may issue regulations governing the entry or withdrawal from warehouse of like articles which are the product of countries not parties to such agreement. “(3) Regulations prescribed under this subsection shall, to the extent practicable and consistent with efficient and fair administration, insure against inequitable sharing of imports by a relatively small number of the larger importers. “SEC. 204. MONITORING. MODIFICATION, AND TERMINATION OF ACTION. “(a) Monitoring.— “(1) So long as any action taken under section 203 remains in effect, the Commission shall monitor developments with respect to the domestic industry, including the progress and specific efforts made by workers and firms in the domestic industry to make apositive adjustment to import competition. “(2) The Commission shall submit a report on the results of the monitoring under paragraph (1) to the President and to the Congress not later than— “(A) the 2ndanniversary of the day on which the action under section 203 first took effect; and “(B) the last day of each 2-year period occurring after the 2-year period referred to in subparagraph (A). “(3) In the course of preparing each report under paragraph (2), the Commission shall hold a hearing at which interested persons shall be given a reasonable opportunity to be present, to produce evidence, and to be heard. “(4) Upon request of the President, the Commission shall advise the President of its judgment as to the probable economic effect on the industry concerned of any extension, reduction, modification, or termination of the action taken under section 203 which is under consideration. “(b) Reduction, Modification, and Termination of Action.— “(1) Action taken under section 203 may be reduced, modified, or terminated by the President (but not before the President receives the report required under subsection (a)(2)(A)) if the President— “(A) after taking into account any report or advice submitted by the Commission under subsection (a) and after seeking the advice of the Secretary of Commerce and the Secretary of Labor, determines, on the basis that either— “(i) the domestic industry has not made adequate efforts to make a positive adjustment to import competition, or “(ii) the effectiveness of the action taken under section 203 has been impaired by changed economic circumstances, that changed circumstances warrant such reduction, or termination; or “(B) determines, after a majority of the representatives of the domestic industry submits to the President a petition requesting such reduction, modification, or termination on 102 STAT. 1239such basis, that the domestic industry has made a positive adjustment to import competition. “(2) Notwithstanding paragraph (1), the President is authorized to take such additional action under section 203 as may be necessary to eliminate any circumvention of any action previously taken under such section. “(d) Evaluation of Effectiveness of Action.— “(1) After any action taken under section 203 has terminated, the Commission shall evaluate the effectiveness of the actions in facilitating positive adjustment by the domestic industry to import competition, consistent with the reasons set out by the President in the report submitted to the Congress under section 203(b). “(2) During the course of the evaluation conducted under paragraph (1), the Commission shall, after reasonable public notice, hold a hearing on the effectiveness of the action. All interested persons shall have the opportunity to attend such hearing and to present evidence or testimony at such hearing. “(3) A report on the evaluation made under paragraph (1) and the hearings held under paragraph (2) shall be submitted by the Commission to the President and to the Congress by no later than the 180th day after the day on which the actions taken under section 203 terminated. “(e) Other Provisions.— “(1) Action by the President under this chapter may be taken without regard to the provisions of section 126(a) of this Act but only after consideration of the relation of such actions to the international obligations of the United States. “(2) If the Commission treats as the domestic industry production located in a major geographic area of the United States under section 202(c)(4)(C), then the President shall take into account the geographic concentration of domestic production and of imports in that area in taking any action authorized under paragraph (1).”. (b) Conforming Amendments.— (1) Trade act of 1974.— The Trade Act of 1974 is amended as follows: (A) section 123(b)(4) is amended by striking out “import relief under section 203(h).” and inserting “action under sections 203(e) and 204.”. (B) Sections 224 and 264 (19 U.S.C. 2274 and 2354) are each amended— (i) by striking out “201” in subsection (a) and inserting “202”; (ii) by striking out “201” in subsection (b) and inserting “202(f)”; and such section 264 is amended by striking out “201(b)” in subsection (c) and inserting “202(b)”. (2) Caribbean basin economic recovery act.— Section 213 of the Caribbean Basin Economic Recovery Act (19 U.S.C. 2703) is amended— (A) by striking out “proclaimed pursuant to section 203” in subsection (e)(1) and inserting “provided under chapter 1 of title II”; (B) by striking out “201(d)(1)” in subsection (e)(2) and inserting “202(f)”; 102 STAT. 1240 (C) by striking out “(a) and (c) of section 203” in subsection (e)(3) and inserting “section 203”; (D) by amending subsection (e)(4)— (i) by striking out “made under subsections (a) and (c) of section 203” and inserting “taken under section 203”; (ii) by striking out “201(b)” the first place it appears and inserting “202(b)”; and (iii) by striking out “section 201(b) of such Act” and inserting “such section”; (E) by amending subsection (e)(5)— (i) by striking out “proclamation issued pursuant to section 203” in subparagraph (A) and inserting “action taken under section 203”; and (ii) by amending subparagraph (B)— (I) by striking out “to import relief” and inserting “to any such action”, (II) by striking out “such import relief” and inserting “such action”, and (III) by striking out “subsections (h) and (i) of section 203” and inserting “section 203”; (F) by amending subsection (f)(4)— (i) by amending subparagraph (A) by striking out “proclamation of import relief pursuant to section 202(a)(1)” and inserting “taking of action under section 203”, and (ii) by amending subparagraph (B) to read as follows: “(B) on the day a determination by the President not to take action under section 203 of such Act not to take action becomes final,”. (3) Trade and tariff act of 1984.— (A) Title IV of the Tariff and Trade Act of 1984 is amended— (i) by amending section 403— (I) by striking out “section 201(d)(1)” in subsection (b) and inserting “section 202(f)”, (II) by striking out “subsections (a) and (c) of” in subsections (c) and (d), (III) by striking out “201(b)” in subsection (d) and inserting “202(b)”, and (IV) by striking out “subsections (h) and (i) of section 203” in subsection (e)(2) and inserting “sections 203 and 204”; and (ii) by amending section 404— (I) by striking out “section 201” in subsection (a) and inserting “section 202(a)”, (II) by striking out “proclamation of import relief under section 202(a)(1)” in subsection (d)(1) and inserting “taking of action under section 203”, and (III) by amending subsection (d)(2) to read as follows: “(2) on the day a determination of the President under section 203 of such Act not to take action becomes final;”. (4) Tariff act of 1930.— Section 330(d) of the Tariff Act of 1930 (19 U.S.C. 1330(d)) is amended— (A) by amending paragraph (1) by striking out “201” and inserting “202”; 102 STAT. 1241 (B) by amending paragraph (2)— (i) by striking out “201” the first place it appears and inserting “202(h)”, (iii) by striking out “201(d)(1)” and inserting “202(e)(1)”, (iv) by striking out “sections 202 and 203” each place it appears and inserting “section 203”, and (v) by striking out “203(b)” in subparagraph (B) and inserting “204(a)”; and (C) by striking out “203(c)(1)” in paragraph (4) and inserting “203(a)”. (5) Table of contents.— The entry for such chapter 1 in the table of contents to the Trade Act of 1974 is amended to read as follows: “Chapter 1— Positive Adjustment by Industries Injured by Imports “Sec. 201. Action to facilitate positive adjustment to import competition. “Sec. 202. Investigations, determinations, and recommendations by Commission. “Sec. 203. Action by President after determination of import injury. “Sec. 204. Monitoring, modification, and termination of action.”. (c) Effective Date.—The amendments made by subsections (a) and (b) shall take effect on the date of the enactment of this Act and shall apply with respect to investigations initiated under chapter 1 of title II of the Trade Act of 1974 on or after that date. Any petition filed under section 201 of such chapter before such date of enactment, and with respect to which the United States International Trade Commission did not make a finding before such date with respect to serious injury or the threat thereof, may be withdrawn and refiled, without prejudice, by the petitioner under section 202(a) of such chapter (as amended by this section).