Public Law 106-200

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[106th Congress Public Law 200]
[From the U.S. Government Printing Office]

[DOCID: f:publ200.106]
[[Page 114 STAT. 251]]
Public Law 106-200
106th Congress
An Act

To authorize a new trade and investment policy for sub-Saharan Africa,
expand trade benefits to the countries in the Caribbean Basin, renew the
generalized system of preferences, and reauthorize the trade adjustment
assistance programs. <>
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress <> assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short <> Title.--This Act may be cited
as the ``Trade and Development Act of 2000''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
TITLE I--EXTENSION OF CERTAIN TRADE BENEFITS TO SUB-SAHARAN AFRICA
Subtitle A--Trade Policy for Sub-Saharan Africa
Sec.
Sec.
Sec.
Sec.
Sec.

101.
102.
103.
104.
105.

Short title; table of contents.
Findings.
Statement of policy.
Eligibility requirements.
United States-Sub-Saharan Africa Trade and Economic
Cooperation Forum.
Sec. 106. Reporting requirement.
Sec. 107. Sub-Saharan Africa defined.
Subtitle B--Trade Benefits
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.

111.
112.
113.
114.
115.
116.
117.

Eligibility for certain benefits.
Treatment of certain textiles and apparel.
Protections against transshipment.
Termination.
Clerical amendments.
Free trade agreements with sub-Saharan African countries.
Assistant United States Trade Representative for African
Affairs.
Subtitle C--Economic Development Related Issues

Sec. 121. Sense of the Congress regarding comprehensive debt relief for
the world's poorest countries.
Sec. 122. Executive branch initiatives.
Sec. 123. Overseas Private Investment Corporation initiatives.
Sec. 124. Export-Import Bank initiatives.
Sec. 125. Expansion of the United States and Foreign Commercial Service
in sub-Saharan Africa.
Sec. 126. Donation of air traffic control equipment to eligible subSaharan African countries.
Sec. 127. Additional authorities and increased flexibility to provide
assistance under the Development Fund for Africa.
Sec. 128. Assistance from United States private sector to prevent and
reduce HIV/AIDS in sub-Saharan Africa.
Sec. 129. Sense of the Congress relating to HIV/AIDS crisis in subSaharan Africa.
Sec. 130. Study on improving African agricultural practices.
Sec. 131. Sense of the Congress regarding efforts to combat

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desertification in Africa and other countries.
[[Page 114 STAT. 252]]
TITLE II--TRADE BENEFITS FOR CARIBBEAN BASIN
Subtitle A--Trade Policy for Caribbean Basin Countries
Sec. 201. Short title.
Sec. 202. Findings and policy.
Sec. 203. Definitions.
Subtitle B--Trade Benefits for Caribbean Basin Countries
Sec. 211. Temporary provisions to provide additional trade benefits to
certain beneficiary countries.
Sec. 212. Duty-free treatment for certain beverages made with Caribbean
rum.
Sec. 213. Meetings of trade ministers and USTR.
TITLE III--NORMAL TRADE RELATIONS
Sec. 301. Normal trade relations for Albania.
Sec. 302. Normal trade relations for Kyrgyzstan.
TITLE IV--OTHER TRADE PROVISIONS
Sec.
Sec.
Sec.
Sec.
Sec.

401.
402.
403.
404.
405.

Sec. 406.
Sec. 407.
Sec. 408.
Sec. 409.
Sec. 410.
Sec. 411.
Sec. 412.

Report on employment and trade adjustment assistance.
Trade adjustment assistance.
Reliquidation of certain nuclear fuel assemblies.
Reports to the Finance and Ways and Means committees.
Clarification of section 334 of the Uruguay Round Agreements
Act.
Chief agricultural negotiator.
Revision of retaliation list or other remedial action.
Report on trade adjustment assistance for agricultural
commodity producers.
Agricultural trade negotiating objectives and consultations
with Congress.
Entry procedures for foreign trade zone operations.
Goods made with forced or indentured child labor.
Worst forms of child labor.
TITLE V--IMPORTS OF CERTAIN WOOL ARTICLES

Sec. 501. Temporary duty reductions.
Sec. 502. Temporary duty suspensions.
Sec. 503. Separate tariff line treatment for wool yarn and men's or
boys' suits and suit-type jackets and trousers of worsted
wool fabric.
Sec. 504. Monitoring of market conditions and authority to modify tariff
reductions.
Sec. 505. Refund of duties paid on imports of certain wool articles.
Sec. 506. Wool research, development, and promotion trust fund.
TITLE VI--REVENUE PROVISIONS
Sec. 601. Application of denial of foreign tax credit regarding trade
and investment with respect to certain foreign countries.
Sec. 602. Acceleration of cover over payments to Puerto Rico and Virgin
Islands.
TITLE <> I--EXTENSION OF
CERTAIN TRADE BENEFITS TO SUB-SAHARAN AFRICA
Subtitle A--Trade Policy for Sub-Saharan Africa
SEC. <> 101. SHORT TITLE.
This title may be cited as the ``African Growth and Opportunity
Act''.
SEC. <> 102. FINDINGS.
Congress finds that-(1) it is in the mutual interest of the United States and
the countries of sub-Saharan Africa to promote stable and
sustainable economic growth and development in sub-Saharan

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Africa;
[[Page 114 STAT. 253]]
(2) the 48 countries of sub-Saharan Africa form a region
richly endowed with both natural and human resources;
(3) sub-Saharan Africa represents a region of enormous
economic potential and of enduring political significance to the
United States;
(4) the region has experienced the strengthening of
democracy as countries in sub-Saharan Africa have taken steps to
encourage broader participation in the political process;
(5) certain countries in sub-Saharan Africa have increased
their economic growth rates, taken significant steps towards
liberalizing their economies, and made progress toward regional
economic integration that can have positive benefits for the
region;
(6) despite those gains, the per capita income in subSaharan Africa averages approximately $500 annually;
(7) trade and investment, as the American experience has
shown, can represent powerful tools both for economic
development and for encouraging broader participation in a
political process in which political freedom can flourish;
(8) increased trade and investment flows have the greatest
impact in an economic environment in which trading partners
eliminate barriers to trade and capital flows and encourage the
development of a vibrant private sector that offers individual
African citizens the freedom to expand their economic
opportunities and provide for their families;
(9) offering the countries of sub-Saharan Africa enhanced
trade preferences will encourage both higher levels of trade and
direct investment in support of the positive economic and
political developments under way throughout the region; and
(10) encouraging the reciprocal reduction of trade and
investment barriers in Africa will enhance the benefits of trade
and investment for the region as well as enhance commercial and
political ties between the United States and sub-Saharan Africa.
SEC. <> 103. STATEMENT OF POLICY.
Congress supports-(1) encouraging increased trade and investment between the
United States and sub-Saharan Africa;
(2) reducing tariff and nontariff barriers and other
obstacles to sub-Saharan African and United States trade;
(3) expanding United States assistance to sub-Saharan
Africa's regional integration efforts;
(4) negotiating reciprocal and mutually beneficial trade
agreements, including the possibility of establishing free trade
areas that serve the interests of both the United States and the
countries of sub-Saharan Africa;
(5) focusing on countries committed to the rule of law,
economic reform, and the eradication of poverty;
(6) strengthening and expanding the private sector in subSaharan Africa, especially enterprises owned by women and small
businesses;
(7) facilitating the development of civil societies and
political freedom in sub-Saharan Africa;
(8) establishing a United States-Sub-Saharan Africa Trade
and Economic Cooperation Forum; and
[[Page 114 STAT. 254]]
(9) the accession of the countries in sub-Saharan Africa to
the Organization for Economic Cooperation and Development (OECD)
Convention on Combating Bribery of Foreign Public Officials in
International Business Transactions.
SEC. <> 104. ELIGIBILITY REQUIREMENTS.
(a) In General.--The President is authorized to designate a subSaharan African country as an eligible sub-Saharan African country if
the President determines that the country-(1) has established, or is making continual progress toward
establishing-(A) a market-based economy that protects private
property rights, incorporates an open rules-based
trading system, and minimizes government interference in

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the economy through measures such as price controls,
subsidies, and government ownership of economic assets;
(B) the rule of law, political pluralism, and the
right to due process, a fair trial, and equal protection
under the law;
(C) the elimination of barriers to United States
trade and investment, including by-(i) the provision of national treatment and
measures to create an environment conducive to
domestic and foreign investment;
(ii) the protection of intellectual property;
and
(iii) the resolution of bilateral trade and
investment disputes;
(D) economic policies to reduce poverty, increase
the availability of health care and educational
opportunities, expand physical infrastructure, promote
the development of private enterprise, and encourage the
formation of capital markets through micro-credit or
other programs;
(E) a system to combat corruption and bribery, such
as signing and implementing the Convention on Combating
Bribery of Foreign Public Officials in International
Business Transactions; and
(F) protection of internationally recognized worker
rights, including the right of association, the right to
organize and bargain collectively, a prohibition on the
use of any form of forced or compulsory labor, a minimum
age for the employment of children, and acceptable
conditions of work with respect to minimum wages, hours
of work, and occupational safety and health;
(2) does not engage in activities that undermine United
States national security or foreign policy interests; and
(3) does not engage in gross violations of internationally
recognized human rights or provide support for acts of
international terrorism and cooperates in international efforts
to eliminate human rights violations and terrorist activities.
(b) Continuing Compliance.--If the President determines that an
eligible sub-Saharan African country is not making continual progress in
meeting the requirements described in subsection (a)(1), the President
shall terminate the designation of the country made pursuant to
subsection (a).
[[Page 114 STAT. 255]]
SEC. <> 105. UNITED STATES-SUB-SAHARAN
AFRICA TRADE AND ECONOMIC COOPERATION FORUM.
(a) Declaration of Policy.--The President shall convene annual highlevel meetings between appropriate officials of the United States
Government and officials of the governments of sub-Saharan African
countries in order to foster close economic ties between the United
States and sub-Saharan Africa.
(b) <> Establishment.--Not later than 12 months
after the date of the enactment of this Act, the President, after
consulting with Congress and the governments concerned, shall establish
a United States-Sub-Saharan Africa Trade and Economic Cooperation Forum
(in this section referred to as the ``Forum'').
(c) Requirements.--In creating the Forum, the President shall meet
the following requirements:
(1) The President shall direct the Secretary of Commerce,
the Secretary of the Treasury, the Secretary of State, and the
United States Trade Representative to host the first annual
meeting with their counterparts from the governments of subSaharan African countries eligible under section 104, and those
sub-Saharan African countries that the President determines are
taking substantial positive steps towards meeting the
eligibility requirements in section 104. The purpose of the
meeting shall be to discuss expanding trade and investment
relations between the United States and sub-Saharan Africa and
the implementation of this title including encouraging joint
ventures between small and large businesses. The President shall
also direct the Secretaries and the United States Trade
Representative to invite to the meeting representatives from
appropriate sub-Saharan African regional organizations and
government officials from other appropriate countries in sub-

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Saharan Africa.
(2)(A) The President, in consultation with the Congress,
shall encourage United States nongovernmental organizations to
host annual meetings with nongovernmental organizations from
sub-Saharan Africa in conjunction with the annual meetings of
the Forum for the purpose of discussing the issues described in
paragraph (1).
(B) The President, in consultation with the Congress, shall
encourage United States representatives of the private sector to
host annual meetings with representatives of the private sector
from sub-Saharan Africa in conjunction with the annual meetings
of the Forum for the purpose of discussing the issues described
in paragraph (1).
(3) The President shall, to the extent practicable, meet
with the heads of governments of sub-Saharan African countries
eligible under section 104, and those sub-Saharan African
countries that the President determines are taking substantial
positive steps toward meeting the eligibility requirements in
section 104, not less than once every 2 years for the purpose of
discussing the issues described in paragraph
(1). <> The first such meeting should take
place not later than 12 months after the date of the enactment
of this Act.
(d) Dissemination of Information by USIS.--In order to assist in
carrying out the purposes of the Forum, the United States Information
Service shall disseminate regularly, through multiple media, economic
information in support of the free market economic reforms described in
this title.
[[Page 114 STAT. 256]]
(e) HIV/AIDS Effect on the sub-Saharan African Workforce.--In
selecting issues of common interest to the United States-Sub-Saharan
Africa Trade and Economic Cooperation Forum, the President shall
instruct the United States delegates to the Forum to promote a review by
the Forum of the HIV/AIDS epidemic in each sub-Saharan African country
and the effect of the HIV/AIDS epidemic on economic development in each
country.
SEC. <> 106. REPORTING
REQUIREMENT.
The President shall submit to the Congress, not later than 1 year
after the date of the enactment of this Act, and annually thereafter
through 2008, a comprehensive report on the trade and investment policy
of the United States for sub-Saharan Africa, and on the implementation
of this title and the amendments made by this title.
SEC. <> 107. SUB-SAHARAN AFRICA DEFINED.
For purposes of this title, the terms ``sub-Saharan Africa'', ``subSaharan African country'', ``country in sub-Saharan Africa'', and
``countries in sub-Saharan Africa'' refer to the following or any
successor political entities:
Republic of Angola (Angola).
Republic of Benin (Benin).
Republic of Botswana (Botswana).
Burkina Faso (Burkina).
Republic of Burundi (Burundi).
Republic of Cameroon (Cameroon).
Republic of Cape Verde (Cape Verde).
Central African Republic.
Republic of Chad (Chad).
Federal Islamic Republic of the Comoros (Comoros).
Democratic Republic of Congo.
Republic of the Congo (Congo).
Republic of Cote d'Ivoire (Cote d'Ivoire).
Republic of Djibouti (Djibouti).
Republic of Equatorial Guinea (Equatorial Guinea).
State of Eritrea (Eritrea).
Ethiopia.
Gabonese Republic (Gabon).
Republic of the Gambia (Gambia).
Republic of Ghana (Ghana).
Republic of Guinea (Guinea).
Republic of Guinea-Bissau (Guinea-Bissau).
Republic of Kenya (Kenya).

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Kingdom of Lesotho (Lesotho).
Republic of Liberia (Liberia).
Republic of Madagascar (Madagascar).
Republic of Malawi (Malawi).
Republic of Mali (Mali).
Islamic Republic of Mauritania (Mauritania).
Republic of Mauritius (Mauritius).
Republic of Mozambique (Mozambique).
Republic of Namibia (Namibia).
Republic of Niger (Niger).
Federal Republic of Nigeria (Nigeria).
Republic of Rwanda (Rwanda).
Democratic Republic of Sao Tome and Principe (Sao Tome and
Principe).
[[Page 114 STAT. 257]]
Republic of Senegal (Senegal).
Republic of Seychelles (Seychelles).
Republic of Sierra Leone (Sierra Leone).
Somalia.
Republic of South Africa (South Africa).
Republic of Sudan (Sudan).
Kingdom of Swaziland (Swaziland).
United Republic of Tanzania (Tanzania).
Republic of Togo (Togo).
Republic of Uganda (Uganda).
Republic of Zambia (Zambia).
Republic of Zimbabwe (Zimbabwe).
Subtitle B--Trade Benefits
SEC. 111. ELIGIBILITY FOR CERTAIN BENEFITS.
(a) In General.--Title V of the Trade Act of 1974 is amended by
inserting after section 506 the following new section:
``SEC. <> 506A. DESIGNATION OF SUB-SAHARAN AFRICAN
COUNTRIES FOR CERTAIN BENEFITS.
``(a) <> Authority To Designate.-``(1) In general.--Notwithstanding any other provision of
law, the President is authorized to designate a country listed
in section 107 of the African Growth and Opportunity Act as a
beneficiary sub-Saharan African country eligible for the
benefits described in subsection (b)-``(A) if the President determines that the country
meets the eligibility requirements set forth in section
104 of that Act, as such requirements are in effect on
the date of the enactment of that Act; and
``(B) subject to the authority granted to the
President under subsections (a), (d), and (e) of section
502, if the country otherwise meets the eligibility
criteria set forth in section 502.
``(2) Monitoring and review of certain countries.--The
President shall monitor, review, and report to Congress annually
on the progress of each country listed in section 107 of the
African Growth and Opportunity Act in meeting the requirements
described in paragraph (1) in order to determine the current or
potential eligibility of each country to be designated as a
beneficiary sub-Saharan African country for purposes of this
section. The President's determinations, and explanations of
such determinations, with specific analysis of the eligibility
requirements described in paragraph (1)(A), shall be included in
the annual report required by section 106 of the African Growth
and Opportunity Act.
``(3) Continuing compliance.--If the President determines
that a beneficiary sub-Saharan African country is not making
continual progress in meeting the requirements described in
paragraph (1), the President shall terminate the designation of
that country as a beneficiary sub-Saharan African country for
purposes of this section, effective on January 1 of the year
following the year in which such determination is made.
``(b) Preferential Tariff Treatment for Certain Articles.-[[Page 114 STAT. 258]]

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``(1) In general.--The President may provide duty-free
treatment for any article described in section 503(b)(1)(B)
through (G) that is the growth, product, or manufacture of a
beneficiary sub-Saharan African country described in subsection
(a), if, after receiving the advice of the International Trade
Commission in accordance with section 503(e), the President
determines that such article is not import-sensitive in the
context of imports from beneficiary sub-Saharan African
countries.
``(2) Rules of origin.--The duty-free treatment provided
under paragraph (1) shall apply to any article described in that
paragraph that meets the requirements of section 503(a)(2),
except that-``(A) if the cost or value of materials produced in
the customs territory of the United States is included
with respect to that article, an amount not to exceed 15
percent of the appraised value of the article at the
time it is entered that is attributed to such United
States cost or value may be applied toward determining
the percentage referred to in subparagraph (A) of
section 503(a)(2); and
``(B) the cost or value of the materials included
with respect to that article that are produced in one or
more beneficiary sub-Saharan African countries shall be
applied in determining such percentage.
``(c) Beneficiary Sub-Saharan African Countries, Etc.--For purposes
of this title, the terms `beneficiary sub-Saharan African country' and
`beneficiary sub-Saharan African countries' mean a country or countries
listed in section 107 of the African Growth and Opportunity Act that the
President has determined is eligible under subsection (a) of this
section.''.
(b) Waiver of Competitive Need Limitation.--Section 503(c)(2)(D) of
the Trade Act of 1974 (19 U.S.C. 2463(c)(2)(D)) is amended to read as
follows:
``(D) Least-developed beneficiary developing
countries and beneficiary sub-saharan african
countries.--Subparagraph (A) shall not apply to any
least-developed beneficiary developing country or any
beneficiary sub-Saharan African country.''.
SEC. <> 112. TREATMENT OF CERTAIN TEXTILES AND
APPAREL.
(a) Preferential Treatment.--Textile and apparel articles described
in subsection (b) that are imported directly into the customs territory
of the United States from a beneficiary sub-Saharan African country
described in section 506A(c) of the Trade Act of 1974, shall enter the
United States free of duty and free of any quantitative limitations in
accordance with the provisions set forth in subsection (b), if the
country has satisfied the requirements set forth in section 113.
(b) Products Covered.--The preferential treatment described in
subsection (a) shall apply only to the following textile and apparel
products:
(1) Apparel articles assembled in beneficiary sub-saharan
african countries.--Apparel articles assembled in one or more
beneficiary sub-Saharan African countries from fabrics wholly
formed and cut in the United States, from yarns wholly formed in
the United States, (including fabrics not formed from yarns, if
such fabrics are classifiable under heading
[[Page 114 STAT. 259]]
5602 or 5603 of the Harmonized Tariff Schedule of the United
States and are wholly formed and cut in the United States) that
are-(A) entered under subheading 9802.00.80 of the
Harmonized Tariff Schedule of the United States; or
(B) entered under chapter 61 or 62 of the Harmonized
Tariff Schedule of the United States, if, after such
assembly, the articles would have qualified for entry
under subheading 9802.00.80 of the Harmonized Tariff
Schedule of the United States but for the fact that the
articles were embroidered or subjected to stone-washing,
enzyme-washing, acid washing, perma-pressing, ovenbaking, bleaching, garment-dyeing, screen printing, or
other similar processes.
(2) Apparel articles cut and assembled in beneficiary sub-

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saharan african countries.--Apparel articles cut in one or more
beneficiary sub-Saharan African countries from fabric wholly
formed in the United States from yarns wholly formed in the
United States, (including fabrics not formed from yarns, if such
fabrics are classifiable under heading 5602 or 5603 of the
Harmonized Tariff Schedule of the United States and are wholly
formed in the United States) if such articles are assembled in
one or more beneficiary sub-Saharan African countries with
thread formed in the United States.
(3) Apparel articles assembled from regional and other
fabric.--Apparel articles wholly assembled in one or more
beneficiary sub-Saharan African countries from fabric wholly
formed in one or more beneficiary sub-Saharan African countries
from yarn originating either in the United States or one or more
beneficiary sub-Saharan African countries (including fabrics not
formed from yarns, if such fabrics are classifiable under
heading 5602 or 5603 of the Harmonized Tariff Schedule of the
United States and are wholly formed and cut in one or more
beneficiary sub-Saharan African countries), subject to the
following:
(A) Limitations on benefits.-(i) In general.--Preferential treatment under
this paragraph shall be extended in the 1-year
period beginning on October 1, 2000, and in each
of the seven succeeding 1-year periods, to imports
of apparel articles in an amount not to exceed the
applicable percentage of the aggregate square
meter equivalents of all apparel articles imported
into the United States in the preceding 12-month
period for which data are available.
(ii) Applicable percentage.--For purposes of
this subparagraph, the term ``applicable
percentage'' means 1.5 percent for the 1-year
period beginning October 1, 2000, increased in
each of the seven succeeding 1-year periods by
equal increments, so that for the period beginning
October 1, 2007, the applicable percentage does
not exceed 3.5 percent.
(B) Special rule for lesser developed countries.-(i) In general.--Subject to subparagraph (A),
preferential treatment shall be extended through
September 30, 2004, for apparel articles wholly
assembled
[[Page 114 STAT. 260]]
in one or more lesser developed beneficiary subSaharan African countries regardless of the
country of origin of the fabric used to make such
articles.
(ii) Lesser developed beneficiary sub-saharan
african country.--For purposes of this
subparagraph the term ``lesser developed
beneficiary sub-Saharan African country'' means a
beneficiary sub-Saharan African country that had a
per capita gross national product of less than
$1,500 a year in 1998, as measured by the World
Bank.
(C) Surge mechanism.-(i) Import monitoring.--The Secretary of
Commerce shall monitor imports of articles
described in this paragraph on a monthly basis to
determine if there has been a surge in imports of
such articles. In order to permit public access to
preliminary international trade data and to
facilitate the early identification of potentially
disruptive import surges, the Director of the
Office of Management and Budget may grant an
exception to the publication dates established for
the release of data on United States international
trade in covered articles, if the Director
notifies Congress of the early release of the
data.
(ii) Determination of damage or threat
thereof.--Whenever the Secretary of Commerce
determines, based on the data described in clause
(i), or pursuant to a written request made by an
interested party, that there has been a surge in

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imports of an article described in this paragraph
from a beneficiary sub-Saharan African country,
the Secretary shall determine whether such article
from such country is being imported in such
increased quantities as to cause serious damage,
or threat thereof, to the domestic industry
producing a like or directly competitive article.
If the Secretary's determination is affirmative,
the President shall suspend the duty-free
treatment provided for such article under this
paragraph. If the inquiry is initiated at the
request of an interested party, the Secretary
shall make the determination within 60 days after
the date of the request.
(iii) Factors to consider.--In determining
whether a domestic industry has been seriously
damaged, or is threatened with serious damage, the
Secretary shall examine the effect of the imports
on relevant economic indicators such as domestic
production, sales, market share, capacity
utilization, inventories, employment, profits,
exports, prices, and investment.
(iv) Procedure.-(I) <> Initiation.--The
Secretary of Commerce shall initiate an
inquiry within 10 days after receiving a
written request and supporting
information for an inquiry from an
interested party. <> Notice of
initiation of an inquiry shall be
published in the Federal Register.
[[Page 114 STAT. 261]]
(II) Participation by interested
parties.--The Secretary of Commerce
shall establish procedures to ensure
participation in the inquiry by
interested parties.
(III) <> Notice of
determination.--The Secretary shall
publish the determination described in
clause (ii) in the Federal Register.
(IV) Information available.--If
relevant information is not available on
the record or any party withholds
information that has been requested by
the Secretary, the Secretary shall make
the determination on the basis of the
facts available. When the Secretary
relies on information submitted in the
inquiry as facts available, the
Secretary shall, to the extent
practicable, corroborate the information
from independent sources that are
reasonably available to the Secretary.
(v) Interested party.--For purposes of this
subparagraph, the term ``interested party'' means
any producer of a like or directly competitive
article, a certified union or recognized union or
group of workers which is representative of an
industry engaged in the manufacture, production,
or sale in the United States of a like or directly
competitive article, a trade or business
association representing producers or sellers of
like or directly competitive articles, producers
engaged in the production of essential inputs for
like or directly competitive articles, a certified
union or group of workers which is representative
of an industry engaged in the manufacture,
production, or sale of essential inputs for the
like or directly competitive article, or a trade
or business association representing companies
engaged in the manufacture, production, or sale of
such essential inputs.

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(4) Sweaters knit-to-shape from cashmere or merino wool.-(A) Cashmere.--Sweaters, in chief weight of
cashmere, knit-to-shape in one or more beneficiary subSaharan African countries and classifiable under
subheading 6110.10 of the Harmonized Tariff Schedule of
the United States.
(B) Merino wool.--Sweaters, 50 percent or more by
weight of wool measuring 18.5 microns in diameter or
finer, knit-to-shape in one or more beneficiary subSaharan African countries.
(5) Apparel articles wholly assembled from fabric or yarn
not available in commercial quantities in the united states.-(A) In general.--Apparel articles that are both cut
(or knit-to-shape) and sewn or otherwise assembled in
one or more beneficiary sub-Saharan African countries,
from fabric or yarn that is not formed in the United
States or a beneficiary sub-Saharan African country, to
the extent that apparel articles of such fabrics or
yarns would be eligible for preferential treatment,
without regard to the source of the fabric or yarn,
under Annex 401 to the NAFTA.
[[Page 114 STAT. 262]]
(B) <> Additional apparel
articles.--At the request of any interested party and
subject to the following requirements, the President is
authorized to proclaim the treatment provided under
subparagraph (A) for yarns or fabrics not described in
subparagraph (A) if-(i) the President determines that such yarns
or fabrics cannot be supplied by the domestic
industry in commercial quantities in a timely
manner;
(ii) the President has obtained advice
regarding the proposed action from the appropriate
advisory committee established under section 135
of the Trade Act of 1974 (19 U.S.C. 2155) and the
United States International Trade Commission;
(iii) <> within 60
calendar days after the request, the President has
submitted a report to the Committee on Ways and
Means of the House of Representatives and the
Committee on Finance of the Senate that sets
forth-(I) the action proposed to be
proclaimed and the reasons for such
action; and
(II) the advice obtained under
clause (ii);
(iv) a period of 60 calendar days, beginning
with the first day on which the President has met
the requirements of subclauses (I) and (II) of
clause (iii), has expired; and
(v) the President has consulted with such
committees regarding the proposed action during
the period referred to in clause (iii).
(6) Handloomed, handmade, and folklore articles.--A
handloomed, handmade, or folklore article of a beneficiary subSaharan African country or countries that is certified as such
by the competent authority of such beneficiary country or
countries. <> For purposes of this paragraph,
the President, after consultation with the beneficiary subSaharan African country or countries concerned, shall determine
which, if any, particular textile and apparel goods of the
country (or countries) shall be treated as being handloomed,
handmade, or folklore articles.
(c) <> Treatment of Quotas on Textile
and Apparel Imports from Kenya and Mauritius.--The President shall
eliminate the existing quotas on textile and apparel articles imported
into the United States-(1) from Kenya within 30 days after that country adopts an
effective visa system to prevent unlawful transshipment of
textile and apparel articles and the use of counterfeit
documents relating to the importation of the articles into the
United States; and
(2) from Mauritius within 30 days after that country adopts

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such a visa system.
The Customs Service shall provide the necessary technical assistance to
Kenya and Mauritius in the development and implementation of the visa
systems.
(d) Special Rules.-(1) Findings and trimmings.-(A) General rule.--An article otherwise eligible for
preferential treatment under this section shall not be
ineligible for such treatment because the article
contains
[[Page 114 STAT. 263]]
findings or trimmings of foreign origin, if the value of
such findings and trimmings do not exceed 25 percent of
the cost of the components of the assembled article.
Examples of findings and trimmings are sewing thread,
hooks and eyes, snaps, buttons, ``bow buds'', decorative
lace trim, elastic strips, and zippers, including zipper
tapes and labels. Elastic strips are considered findings
or trimmings only if they are each less than 1 inch in
width and used in the production of brassieres.
(B) Certain interlinings.-(i) General rule.--An article otherwise
eligible for preferential treatment under this
section shall not be ineligible for such treatment
because the article contains certain interlinings
of foreign origin, if the value of such
interlinings (and any findings and trimmings) does
not exceed 25 percent of the cost of the
components of the assembled article.
(ii) Interlinings described.--Interlinings
eligible for the treatment described in clause (i)
include only a chest type plate, a ``hymo'' piece,
or ``sleeve header'', of woven or weft-inserted
warp knit construction and of coarse animal hair
or man-made filaments.
(iii) Termination of treatment.--The treatment
described in this subparagraph shall terminate if
the President makes a determination that United
States manufacturers are producing such
interlinings in the United States in commercial
quantities.
(C) Exception.--In the case of an article described
in subsection (b)(2), sewing thread shall not be treated
as findings or trimmings under subparagraph (A).
(2) De minimis rule.--An article otherwise eligible for
preferential treatment under this section shall not be
ineligible for such treatment because the article contains
fibers or yarns not wholly formed in the United States or one or
more beneficiary sub-Saharan African countries if the total
weight of all such fibers and yarns is not more than 7 percent
of the total weight of the article.
(e) Definitions.--In this section and section 113:
(1) Agreement on textiles and clothing.--The term
``Agreement on Textiles and Clothing'' means the Agreement on
Textiles and Clothing referred to in section 101(d)(4) of the
Uruguay Round Agreements Act (19 U.S.C. 3511(d)(4)).
(2) Beneficiary sub-saharan african country, etc.--The terms
``beneficiary sub-Saharan African country'' and ``beneficiary
sub-Saharan African countries'' have the same meaning as such
terms have under section 506A(c) of the Trade Act of 1974.
(3) NAFTA.--The term ``NAFTA'' means the North American Free
Trade Agreement entered into between the United States, Mexico,
and Canada on December 17, 1992.
(f ) <> Effective Date.--This section takes
effect on October 1, 2000, and shall remain in effect through September
30, 2008.
SEC. <> 113. PROTECTIONS AGAINST TRANSSHIPMENT.
(a) Preferential Treatment Conditioned on Enforcement Measures.-[[Page 114 STAT. 264]]

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(1) In general.--The preferential treatment under section
112(a) shall not be provided to textile and apparel articles
that are imported from a beneficiary sub-Saharan African country
unless that country-(A) has adopted an effective visa system, domestic
laws, and enforcement procedures applicable to covered
articles to prevent unlawful transshipment of the
articles and the use of counterfeit documents relating
to the importation of the articles into the United
States;
(B) has enacted legislation or promulgated
regulations that would permit United States Customs
Service verification teams to have the access necessary
to investigate thoroughly allegations of transshipment
through such country;
(C) agrees to report, on a timely basis, at the
request of the United States Customs Service, on the
total exports from and imports into that country of
covered articles, consistent with the manner in which
the records are kept by that country;
(D) will cooperate fully with the United States to
address and take action necessary to prevent
circumvention as provided in Article 5 of the Agreement
on Textiles and Clothing;
(E) agrees to require all producers and exporters of
covered articles in that country to maintain complete
records of the production and the export of covered
articles, including materials used in the production,
for at least 2 years after the production or export (as
the case may be); and
(F) agrees to report, on a timely basis, at the
request of the United States Customs Service,
documentation establishing the country of origin of
covered articles as used by that country in implementing
an effective visa system.
(2) Country of origin documentation.--For purposes of
paragraph (1)(F), documentation regarding the country of origin
of the covered articles includes documentation such as
production records, information relating to the place of
production, the number and identification of the types of
machinery used in production, the number of workers employed in
production, and certification from both the manufacturer and the
exporter.
(b) Customs Procedures and Enforcement.-(1) In general.-(A) Regulations.--Any importer that claims
preferential treatment under section 112 shall comply
with customs procedures similar in all material respects
to the requirements of Article 502(1) of the NAFTA as
implemented pursuant to United States law, in accordance
with regulations promulgated by the Secretary of the
Treasury.
(B) Determination.-(i) <> In general.--In order
to qualify for the preferential treatment under
section 112 and for a Certificate of Origin to be
valid with respect to any article for which such
treatment is claimed, there shall be in effect a
determination by the President that each country
described in clause (ii)-(I) has implemented and follows; or
[[Page 114 STAT. 265]]
(II) is making substantial progress
toward implementing and following,
procedures and requirements similar in all
material respects to the relevant procedures and
requirements under chapter 5 of the NAFTA.
(ii) Country described.--A country is
described in this clause if it is a beneficiary
sub-Saharan African country-(I) from which the article is
exported; or
(II) in which materials used in the
production of the article originate or
in which the article or such materials,

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undergo production that contributes to a
claim that the article is eligible for
preferential treatment.
(2) Certificate of origin.--The Certificate of Origin that
otherwise would be required pursuant to the provisions of
paragraph (1) shall not be required in the case of an article
imported under section 112 if such Certificate of Origin would
not be required under Article 503 of the NAFTA (as implemented
pursuant to United States law), if the article were imported
from Mexico.
(3) Penalties for exporters.--If the President determines,
based on sufficient evidence, that an exporter has engaged in
transshipment as defined in paragraph (4), then the President
shall deny for a period of 5 years all benefits under section
112 to such exporter, any successor of such exporter, and any
other entity owned or operated by the principal of the exporter.
(4) Transshipment described.--Transshipment within the
meaning of this subsection has occurred when preferential
treatment for a textile or apparel article under this Act has
been claimed on the basis of material false information
concerning the country of origin, manufacture, processing, or
assembly of the article or any of its components. For purposes
of this paragraph, false information is material if disclosure
of the true information would mean or would have meant that the
article is or was ineligible for preferential treatment under
section 112.
(5) <> Monitoring and reports to
congress.--The Customs Service shall monitor and the
Commissioner of Customs shall submit to Congress, not later than
March 31 of each year, a report on the effectiveness of the visa
systems and the implementation of legislation and regulations
described in subsection (a) and on measures taken by countries
in sub-Saharan Africa which export textiles or apparel to the
United States to prevent circumvention as described in Article 5
of the Agreement on Textiles and Clothing.
(c) Customs Service Enforcement.--The Customs Service shall-(1) make available technical assistance to the beneficiary
sub-Saharan African countries-(A) in the development and implementation of visa
systems, legislation, and regulations described in
subsection (a)(1)(A); and
(B) to train their officials in anti-transshipment
enforcement;
[[Page 114 STAT. 266]]
(2) send production verification teams to at least four
beneficiary sub-Saharan African countries each year; and
(3) to the extent feasible, place beneficiary sub-Saharan
African countries on the Electronic Visa (ELVIS) program.
(d) Authorization of Appropriations.--There is authorized to be
appropriated to carry out subsection (c) the sum of $5,894,913.
SEC. 114. TERMINATION.
Title V of the Trade Act of 1974 is amended by inserting after
section 506A the following new section:
``SEC. <> 506B. TERMINATION OF BENEFITS FOR SUBSAHARAN AFRICAN COUNTRIES.
``In the case of a beneficiary sub-Saharan African country, as
defined in section 506A(c), duty-free treatment provided under this
title shall remain in effect through September 30, 2008.''.
SEC. 115. CLERICAL AMENDMENTS.
The table of contents for title V of the Trade Act of 1974 is
amended by inserting after the item relating to section 506 the
following new items:
``Sec. 506A. Designation of sub-Saharan African countries for certain
benefits.
``Sec. 506B. Termination of benefits for sub-Saharan African
countries.''.

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SEC. <> 116. FREE TRADE AGREEMENTS WITH SUB-SAHARAN
AFRICAN COUNTRIES.
(a) Declaration of Policy.--Congress declares that free trade
agreements should be negotiated, where feasible, with interested
countries in sub-Saharan Africa, in order to serve as the catalyst for
increasing trade between the United States and sub-Saharan Africa and
increasing private sector investment in sub-Saharan Africa.
(b) Plan Requirement.-(1) <> In general.--The President, taking
into account the provisions of the treaty establishing the
African Economic Community and the willingness of the
governments of sub-Saharan African countries to engage in
negotiations to enter into free trade agreements, shall develop
a plan for the purpose of negotiating and entering into one or
more trade agreements with interested beneficiary sub-Saharan
African countries.
(2) Elements of plan.--The plan shall include the following:
(A) The specific objectives of the United States
with respect to negotiations described in paragraph (1)
and a suggested timetable for achieving those
objectives.
(B) The benefits to both the United States and the
relevant sub-Saharan African countries with respect to
the applicable free trade agreement or agreements.
(C) A mutually agreed-upon timetable for the
negotiations.
(D) The implications for and the role of regional
and sub-regional organizations in sub-Saharan Africa
with respect to such free trade agreement or agreements.
(E) Subject matter anticipated to be covered by the
negotiations and United States laws, programs, and
policies, as well as the laws of participating eligible
African
[[Page 114 STAT. 267]]
countries and existing bilateral and multilateral and
economic cooperation and trade agreements, that may be
affected by the agreement or agreements.
(F) Procedures to ensure the following:
(i) Adequate consultation with the Congress
and the private sector during the negotiations.
(ii) Consultation with the Congress regarding
all matters relating to implementation of the
agreement or agreements.
(iii) Approval by the Congress of the
agreement or agreements.
(iv) Adequate consultations with the relevant
African governments and African regional and
subregional intergovernmental organizations during
the negotiation of the agreement or agreements.
(c) <> Reporting Requirement.--Not later
than 12 months after the date of the enactment of this Act, the
President shall prepare and transmit to the Congress a report containing
the plan developed pursuant to subsection (b).
SEC. <> 117. ASSISTANT UNITED STATES TRADE
REPRESENTATIVE FOR AFRICAN AFFAIRS.
It is the sense of the Congress that-(1) the position of Assistant United States Trade
Representative for African Affairs is integral to the United
States commitment to increasing United States-sub-Saharan
African trade and investment;
(2) the position of Assistant United States Trade
Representative for African Affairs should be maintained within
the Office of the United States Trade Representative to direct
and coordinate interagency activities on United States-Africa
trade policy and investment matters and serve as-(A) a primary point of contact in the executive
branch for those persons engaged in trade between the
United States and sub-Saharan Africa; and
(B) the chief advisor to the United States Trade
Representative on issues of trade and investment with
Africa; and
(3) the United States Trade Representative should have

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adequate funding and staff to carry out the duties of the
Assistant United States Trade Representative for African Affairs
described in paragraph (2), subject to the availability of
appropriations.
Subtitle C--Economic Development Related Issues
SEC. <> 121. SENSE OF THE CONGRESS REGARDING
COMPREHENSIVE DEBT RELIEF FOR THE WORLD'S POOREST COUNTRIES.
(a) Findings.--Congress makes the following findings:
(1) The burden of external debt has become a major
impediment to economic growth and poverty reduction in many of
the world's poorest countries.
(2) Until recently, the United States Government and other
official creditors sought to address this problem by
rescheduling loans and in some cases providing limited debt
reduction.
[[Page 114 STAT. 268]]
(3) Despite such efforts, the cumulative debt of many of the
world's poorest countries continued to grow beyond their
capacity to repay.
(4) In 1997, the Group of Seven, the World Bank, and the
International Monetary Fund adopted the Heavily Indebted Poor
Countries Initiative (HIPC), a commitment by the international
community that all multilateral and bilateral creditors, acting
in a coordinated and concerted fashion, would reduce poor
country debt to a sustainable level.
(5) The HIPC Initiative is currently undergoing reforms to
address concerns raised about country conditionality, the amount
of debt forgiven, and the allocation of savings realized through
the debt forgiveness program to ensure that the Initiative
accomplishes the goals of economic growth and poverty
alleviation in the world's poorest countries.
(b) Sense of the Congress.--It is the sense of the Congress that-(1) Congress and the President should work together, without
undue delay and in concert with the international community, to
make comprehensive debt relief available to the world's poorest
countries in a manner that promotes economic growth and poverty
alleviation;
(2) this program of bilateral and multilateral debt relief
should be designed to strengthen and expand the private sector,
encourage increased trade and investment, support the
development of free markets, and promote broad-scale economic
growth in beneficiary countries;
(3) this program of debt relief should also support the
adoption of policies to alleviate poverty and to ensure that
benefits are shared widely among the population, such as through
initiatives to advance education, improve health, combat AIDS,
and promote clean water and environmental protection;
(4) these debt relief agreements should be designed and
implemented in a transparent manner and with the broad
participation of the citizenry of the debtor country and should
ensure that country circumstances are adequately taken into
account;
(5) no country should receive the benefits of debt relief if
that country does not cooperate with the United States on
terrorism or narcotics enforcement, is a gross violator of the
human rights of its citizens, or is engaged in conflict or
spends excessively on its military; and
(6) in order to prevent adverse impact on a key industry in
many developing countries, the International Monetary Fund must
mobilize its own resources for providing debt relief to eligible
countries without allowing gold to reach the open market, or
otherwise adversely affecting the market price of gold.
SEC. <> 122. EXECUTIVE BRANCH INITIATIVES.
(a) Statement of the Congress.--The Congress recognizes that the
stated policy of the executive branch in 1997, the ``Partnership for
Growth and Opportunity in Africa'' initiative, is a step toward the
establishment of a comprehensive trade and development policy for subSaharan Africa. It is the sense of the Congress
[[Page 114 STAT. 269]]

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that this Partnership is a companion to the policy goals set forth in
this title.
(b) Technical Assistance To Promote Economic Reforms and
Development.--In addition to continuing bilateral and multilateral
economic and development assistance, the President shall target
technical assistance toward-(1) developing relationships between United States firms and
firms in sub-Saharan Africa through a variety of business
associations and networks;
(2) providing assistance to the governments of sub-Saharan
African countries to-(A) liberalize trade and promote exports;
(B) bring their legal regimes into compliance with
the standards of the World Trade Organization in
conjunction with membership in that Organization;
(C) make financial and fiscal reforms; and
(D) promote greater agribusiness linkages;
(3) addressing such critical agricultural policy issues as
market liberalization, agricultural export development, and
agribusiness investment in processing and transporting
agricultural commodities;
(4) increasing the number of reverse trade missions to
growth-oriented countries in sub-Saharan Africa;
(5) increasing trade in services; and
(6) encouraging greater sub-Saharan African participation in
future negotiations in the World Trade Organization on services
and making further commitments in their schedules to the General
Agreement on Trade in Services in order to encourage the removal
of tariff and nontariff barriers.
SEC. <> 123. OVERSEAS PRIVATE INVESTMENT CORPORATION
INITIATIVES.
(a) Initiation of Funds.--It is the sense of the Congress that the
Overseas Private Investment Corporation should exercise the authorities
it has to initiate an equity fund or equity funds in support of projects
in the countries in sub-Saharan Africa, in addition to the existing
equity fund for sub-Saharan Africa created by the Corporation.
(b) Structure and Types of Funds.-(1) Structure.--Each fund initiated under subsection (a)
should be structured as a partnership managed by professional
private sector fund managers and monitored on a continuing basis
by the Corporation.
(2) Capitalization.--Each fund should be capitalized with a
combination of private equity capital, which is not guaranteed
by the Corporation, and debt for which the Corporation provides
guaranties.
(3) Infrastructure fund.--One or more of the funds, with
combined assets of up to $500,000,000, should be used in support
of infrastructure projects in countries of sub-Saharan Africa.
(4) Emphasis.--The Corporation shall ensure that the funds
are used to provide support in particular to women entrepreneurs
and to innovative investments that expand opportunities for
women and maximize employment opportunities for poor
individuals.
(c) Overseas Private Investment Corporation.-[[Page 114 STAT. 270]]
(1) Investment advisory council.--Section 233 of the Foreign
Assistance Act of 1961 is <> amended by
adding at the end the following:
``(e) Investment Advisory Council.--The Board shall take prompt
measures to increase the loan, guarantee, and insurance programs, and
financial commitments, of the Corporation in sub-Saharan Africa,
including through the use of an investment advisory council to assist
the Board in developing and implementing policies, programs, and
financial instruments with respect to sub-Saharan Africa. In addition,
the investment advisory council shall make recommendations to the Board
on how the Corporation can facilitate greater support by the United
States for trade and investment with and in sub-Saharan
Africa. <> The investment advisory council
shall terminate 4 years after the date of the enactment of this
subsection.''.
(2) <> Reports to congress.--Within 6

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months after the date of the enactment of this Act, and annually
for each of the 4 years thereafter, the Board of Directors of
the Overseas Private Investment Corporation shall submit to
Congress a report on the steps that the Board has taken to
implement section 233(e) of the Foreign Assistance Act of 1961
(as added by paragraph (1)) and any recommendations of the
investment advisory council established pursuant to such
section.
SEC. <> 124. EXPORT-IMPORT BANK INITIATIVES.
(a) Sense of the Congress.--It is the sense of the Congress that the
Board of Directors of the Bank shall continue to take comprehensive
measures, consistent with the credit standards otherwise required by
law, to promote the expansion of the Bank's financial commitments in
sub-Saharan Africa under the loan, guarantee and insurance programs of
the Bank.
(b) Sub-Saharan Africa Advisory Committee.--The sub-Saharan Africa
Advisory Committee (SAAC) is to be commended for aiding the Bank in
advancing the economic partnership between the United States and the
nations of sub-Saharan Africa by doubling the number of sub-Saharan
African countries in which the Bank is open for traditional financing
and by increasing by tenfold the Bank's support for sales to sub-Saharan
Africa from fiscal year 1998 to fiscal year 1999. The Board of Directors
of the Bank and its staff shall continue to review carefully the subSaharan Africa Advisory Committee recommendations on the development and
implementation of new and innovative policies and programs designed to
promote the Bank's expansion in sub-Saharan Africa.
SEC. <> 125. EXPANSION OF THE UNITED STATES AND
FOREIGN COMMERCIAL SERVICE IN SUB-SAHARAN AFRICA.
(a) Findings.--The Congress makes the following findings:
(1) The United States and Foreign Commercial Service
(hereafter in this section referred to as the ``Commercial
Service'') plays an important role in helping United States
businesses identify export opportunities and develop reliable
sources of information on commercial prospects in foreign
countries.
(2) During the 1980s, the presence of the Commercial Service
in sub-Saharan Africa consisted of 14 professionals providing
services in eight countries. By early 1997, that presence had
been reduced by half to seven professionals in only four
countries.
[[Page 114 STAT. 271]]
(3) Since 1997, the Department of Commerce has slowly begun
to increase the presence of the Commercial Service in subSaharan Africa, adding five full-time officers to established
posts.
(4) Although the Commercial Service Officers in these
countries have regional responsibilities, this kind of coverage
does not adequately service the needs of United States
businesses attempting to do business in sub-Saharan Africa.
(5) The Congress has, on several occasions, encouraged the
Commercial Service to focus its resources and efforts in
countries or regions in Europe or Asia to promote greater United
States export activity in those markets, and similar
encouragement should be provided for countries in sub-Saharan
Africa as well.
(6) Because market information is not widely available in
many sub-Saharan African countries, the presence of additional
Commercial Service Officers and resources can play a significant
role in assisting United States businesses in markets in those
countries.
(b) <> Appointments.--Subject to the availability
of appropriations, by not later than December 31, 2001, the Secretary of
Commerce, acting through the Assistant Secretary of Commerce and
Director General of the United States and Foreign Commercial Service,
shall take steps to ensure that-(1) at least 20 full-time Commercial Service employees are
stationed in sub-Saharan Africa; and
(2) full-time Commercial Service employees are stationed in
not less than 10 different sub-Saharan African countries.
(c) Initiative for Sub-Saharan Africa.--In order to encourage the

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export of United States goods and services to sub-Saharan African
countries, the International Trade Administration shall make a special
effort to-(1) identify United States goods and services which are the
best prospects for export by United States companies to subSaharan Africa;
(2) identify, where appropriate, tariff and nontariff
barriers that are preventing or hindering sales of United States
goods and services to, or the operation of United States
companies in, sub-Saharan Africa;
(3) hold discussions with appropriate authorities in subSaharan Africa on the matters described in paragraphs (1) and
(2) with a view to securing increased market access for United
States exporters of goods and services;
(4) identify current resource allocations and personnel
levels in sub-Saharan Africa for the Commercial Service and
consider plans for the deployment of additional resources or
personnel to that region; and
(5) <> make available to the
public, through printed and electronic means of communication,
the information derived pursuant to paragraphs (1) through (4)
for each of the 4 years after the date of the enactment of this
Act.
SEC. <> 126. DONATION OF AIR TRAFFIC CONTROL
EQUIPMENT TO ELIGIBLE SUB-SAHARAN AFRICAN COUNTRIES.
It is the sense of the Congress that, to the extent appropriate, the
United States Government should make every effort to donate to
governments of sub-Saharan African countries determined to
[[Page 114 STAT. 272]]
be eligible under section 104 air traffic control equipment that is no
longer in use, including appropriate related reimbursable technical
assistance.
SEC. <> 127. ADDITIONAL AUTHORITIES AND INCREASED
FLEXIBILITY TO PROVIDE ASSISTANCE UNDER THE DEVELOPMENT FUND
FOR AFRICA.
(a) Use of Sustainable Development Assistance To Support Further
Economic Growth.--It is the sense of the Congress that sustained
economic growth in sub-Saharan Africa depends in large measure upon the
development of a receptive environment for trade and investment, and
that to achieve this objective the United States Agency for
International Development should continue to support programs which help
to create this environment. Investments in human resources, development,
and implementation of free market policies, including policies to
liberalize agricultural markets and improve food security, and the
support for the rule of law and democratic governance should continue to
be encouraged and enhanced on a bilateral and regional basis.
(b) Declarations of Policy.--The Congress makes the following
declarations:
(1) The Development Fund for Africa established under
chapter 10 of part I of the Foreign Assistance Act of 1961 (22
U.S.C. 2293 et seq.) has been an effective tool in providing
development assistance to sub-Saharan Africa since 1988.
(2) The Development Fund for Africa will complement the
other provisions of this title and lay a foundation for
increased trade and investment opportunities between the United
States and sub-Saharan Africa.
(3) Assistance provided through the Development Fund for
Africa will continue to support programs and activities that
promote the long term economic development of sub-Saharan
Africa, such as programs and activities relating to the
following:
(A) Strengthening primary and vocational education
systems, especially the acquisition of middle-level
technical skills for operating modern private businesses
and the introduction of college level business
education, including the study of international
business, finance, and stock exchanges.
(B) Strengthening health care systems.
(C) Supporting democratization, good governance and
civil society and conflict resolution efforts.
(D) Increasing food security by promoting the
expansion of agricultural and agriculture-based

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industrial production and productivity and increasing
real incomes for poor individuals.
(E) Promoting an enabling environment for private
sector-led growth through sustained economic reform,
privatization programs, and market-led economic
activities.
(F) Promoting decentralization and local
participation in the development process, especially
linking the rural production sectors and the industrial
and market centers throughout Africa.
(G) Increasing the technical and managerial capacity
of sub-Saharan African individuals to manage the economy
of sub-Saharan Africa.
[[Page 114 STAT. 273]]
(H) Ensuring sustainable economic growth through
environmental protection.
(4) The African Development Foundation has a unique
congressional mandate to empower the poor to participate fully
in development and to increase opportunities for gainful
employment, poverty alleviation, and more equitable income
distribution in sub-Saharan Africa. The African Development
Foundation has worked successfully to enhance the role of women
as agents of change, strengthen the informal sector with an
emphasis on supporting micro and small sized enterprises,
indigenous technologies, and mobilizing local financing. The
African Development Foundation should develop and implement
strategies for promoting participation in the socioeconomic
development process of grassroots and informal sector groups
such as nongovernmental organizations, cooperatives, artisans,
and traders into the programs and initiatives established under
this title.
(c) Additional Authorities.-(1) In general.--Section 496(h) of the Foreign Assistance
Act of 1961 (22 U.S.C. 2293(h)) is amended-(A) by redesignating paragraph (3) as paragraph (4);
and
(B) by inserting after paragraph (2) the following:
``(3) Democratization and conflict resolution
capabilities.--Assistance under this section may also include
program assistance-``(A) to promote democratization, good governance,
and strong civil societies in sub-Saharan Africa; and
``(B) to strengthen conflict resolution capabilities
of governmental, intergovernmental, and nongovernmental
entities in sub-Saharan Africa.''.
(2) Conforming amendment.--Section 496(h)(4) of such Act, as
amended by paragraph (1), is further amended by striking
``paragraphs (1) and (2)'' in the first sentence and inserting
``paragraphs (1), (2), and (3)''.
SEC. <> 128. ASSISTANCE FROM UNITED STATES PRIVATE
SECTOR TO PREVENT AND REDUCE HIV/AIDS IN SUB-SAHARAN AFRICA.
It is the sense of the Congress that United States businesses should
be encouraged to provide assistance to sub-Saharan African countries to
prevent and reduce the incidence of HIV/AIDS in sub-Saharan Africa. In
providing such assistance, United States businesses should be encouraged
to consider the establishment of an HIV/AIDS Response Fund in order to
provide for coordination among such businesses in the collection and
distribution of the assistance to sub-Saharan African countries.
SEC. <> 129. SENSE OF THE CONGRESS RELATING TO HIV/
AIDS CRISIS IN SUB-SAHARAN AFRICA.
(a) Findings.--The Congress finds the following:
(1) Sustained economic development in sub-Saharan Africa
depends in large measure upon successful trade with and foreign
assistance to the countries of sub-Saharan Africa.
(2) The HIV/AIDS crisis has reached epidemic proportions in
sub-Saharan Africa, where more than 21,000,000 men, women, and
children are infected with HIV.
[[Page 114 STAT. 274]]
(3) Eighty-three percent of the estimated 11,700,000 deaths

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from HIV/AIDS worldwide have been in sub-Saharan Africa.
(4) The HIV/AIDS crisis in sub-Saharan Africa is weakening
the structure of families and societies.
(5)(A) The HIV/AIDS crisis threatens the future of the
workforce in sub-Saharan Africa.
(B) Studies show that HIV/AIDS in sub-Saharan Africa most
severely affects individuals between the ages of 15 and 49--the
age group that provides the most support for the economies of
sub-Saharan African countries.
(6) Clear evidence demonstrates that HIV/AIDS is destructive
to the economies of sub-Saharan African countries.
(7) Sustained economic development is critical to creating
the public and private sector resources in sub-Saharan Africa
necessary to fight the HIV/AIDS epidemic.
(b) Sense of the Congress.--It is the sense of the Congress that-(1) addressing the HIV/AIDS crisis in sub-Saharan Africa
should be a central component of United States foreign policy
with respect to sub-Saharan Africa;
(2) significant progress needs to be made in preventing and
treating HIV/AIDS in sub-Saharan Africa in order to sustain a
mutually beneficial trade relationship between the United States
and sub-Saharan African countries; and
(3) the HIV/AIDS crisis in sub-Saharan Africa is a global
threat that merits further attention through greatly expanded
public, private, and joint public-private efforts, and through
appropriate United States legislation.
SEC. <> 130. STUDY ON IMPROVING AFRICAN AGRICULTURAL
PRACTICES.
(a) In general.--The Secretary of Agriculture, in consultation with
American Land Grant Colleges and Universities and not-for-profit
international organizations, is authorized to conduct a 2-year study on
ways to improve the flow of American farming techniques and practices to
African farmers. The study shall include an examination of ways of
improving or utilizing-(1) knowledge of insect and sanitation procedures;
(2) modern farming and soil conservation techniques;
(3) modern farming equipment (including maintaining the
equipment);
(4) marketing crop yields to prospective purchasers; and
(5) crop maximization practices.
The <> Secretary of Agriculture shall submit the study
to the Committee on Agriculture, Nutrition, and Forestry of the Senate
and the Committee on Agriculture of the House of Representatives not
later than September 30, 2001.
(b) Land Grant Colleges and Not-for-Profit Institutions.--In
conducting the study under subsection (a), the Secretary of Agriculture
is encouraged to consult with American Land Grant Colleges and not-forprofit international organizations that have firsthand knowledge of
current African farming practices.
SEC. <> 131. SENSE OF THE CONGRESS REGARDING EFFORTS
TO COMBAT DESERTIFICATION IN AFRICA AND OTHER COUNTRIES.
(a) Findings.--The Congress finds that-(1) desertification affects approximately one-sixth of the
world's population and one-quarter of the total land area;
[[Page 114 STAT. 275]]
(2) over 1,000,000 hectares of Africa are affected by
desertification;
(3) dryland degradation is an underlying cause of recurrent
famine in Africa;
(4) the United Nations Environment Programme estimates that
desertification costs the world $42,000,000,000 a year, not
including incalculable costs in human suffering; and
(5) the United States can strengthen its partnerships
throughout Africa and other countries affected by
desertification, help alleviate social and economic crises
caused by misuse of natural resources, and reduce dependence on
foreign aid, by taking a leading role to combat desertification.
(b) Sense of the Congress.--It is the sense of the Congress that the

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United States should expeditiously work with the international
community, particularly Africa and other countries affected by
desertification, to-(1) strengthen international cooperation to combat
desertification;
(2) promote the development of national and regional
strategies to address desertification and increase public
awareness of this serious problem and its effects;
(3) develop and implement national action programs that
identify the causes of desertification and measures to address
it; and
(4) recognize the essential role of local governments and
nongovernmental organizations in developing and implementing
measures to address desertification.
TITLE <> II--TRADE BENEFITS FOR CARIBBEAN BASIN
Subtitle A--Trade Policy for Caribbean Basin Countries
SEC. <> 201. SHORT TITLE.
This title may be cited as the ``United States-Caribbean Basin Trade
Partnership Act''.
SEC. <> 202. FINDINGS AND POLICY.
(a) Findings.--Congress makes the following findings:
(1) The Caribbean Basin Economic Recovery Act (in this title
referred to as ``CBERA'') represents a permanent commitment by
the United States to encourage the development of strong
democratic governments and revitalized economies in neighboring
countries in the Caribbean Basin.
(2) In 1998, Hurricane Mitch and Hurricane Georges
devastated areas in the Caribbean Basin region, killing more
than 10,000 people and leaving 3,000,000 homeless.
(3) The total direct impact of Hurricanes Mitch and Georges
on Honduras, Nicaragua, the Dominican Republic, El Salvador, and
Guatemala amounts to $4,200,000,000, representing a severe loss
to income levels in this underdeveloped region.
(4) In addition to short term disaster assistance, United
States policy toward the region should focus on expanding
[[Page 114 STAT. 276]]
international trade with the Caribbean Basin region as an
enduring solution for successful economic growth and recovery.
(5) Thirty-four democratically elected leaders agreed at the
1994 Summit of the Americas to conclude negotiation of a Free
Trade Area of the Americas (in this title referred to as
``FTAA'') by the year 2005.
(6) The economic security of the countries in the Caribbean
Basin will be enhanced by the completion of the FTAA.
(7) Offering temporary benefits to Caribbean Basin countries
will preserve the United States commitment to Caribbean Basin
beneficiary countries, promote the growth of free enterprise and
economic opportunity in these neighboring countries, and thereby
enhance the national security interests of the United States.
(8) Given the greater propensity of countries located in the
Western Hemisphere to use United States components and to
purchase United States products compared to other countries,
increased trade and economic activity between the United States
and countries in the Western Hemisphere will create new jobs in
the United States as a result of expanding export opportunities.
(b) Policy.--It is the policy of the United States-(1) to offer Caribbean Basin beneficiary countries willing
to prepare to become a party to the FTAA or another free trade
agreement, tariff treatment essentially equivalent to that
accorded to products of NAFTA countries for certain products not
currently eligible for duty-free treatment under the CBERA; and
(2) to seek the participation of Caribbean Basin beneficiary
countries in the FTAA or another free trade agreement at the
earliest possible date, with the goal of achieving full
participation in such agreement not later than 2005.
SEC. <> 203. DEFINITIONS.

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In this title:
(1) NAFTA.--The term ``NAFTA'' means the North American Free
Trade Agreement entered into between the United States, Mexico,
and Canada on December 17, 1992.
(2) NAFTA country.--The term ``NAFTA country'' means any
country with respect to which the NAFTA is in force.
(3) WTO and wto member.--The terms ``WTO'' and ``WTO
member'' have the meanings given those terms in section 2 of the
Uruguay Round Agreements Act (19 U.S.C. 3501).
Subtitle B--Trade Benefits for Caribbean Basin Countries
SEC. 211. TEMPORARY PROVISIONS TO PROVIDE ADDITIONAL TRADE BENEFITS TO
CERTAIN BENEFICIARY COUNTRIES.
(a) Temporary Provisions.--Section 213(b) of the Caribbean Basin
Economic Recovery Act (19 U.S.C. 2703(b)) is amended to read as follows:
``(b) Import-Sensitive Articles.-``(1) In general.--Subject to paragraphs (2) through (5),
the duty-free treatment provided under this title does not apply
to-[[Page 114 STAT. 277]]
``(A) textile and apparel articles which were not
eligible articles for purposes of this title on January
1, 1994, as this title was in effect on that date;
``(B) footwear not designated at the time of the
effective date of this title as eligible articles for
the purpose of the generalized system of preferences
under title V of the Trade Act of 1974;
``(C) tuna, prepared or preserved in any manner, in
airtight containers;
``(D) petroleum, or any product derived from
petroleum, provided for in headings 2709 and 2710 of the
HTS;
``(E) watches and watch parts (including cases,
bracelets, and straps), of whatever type including, but
not limited to, mechanical, quartz digital or quartz
analog, if such watches or watch parts contain any
material which is the product of any country with
respect to which HTS column 2 rates of duty apply; or
``(F) articles to which reduced rates of duty apply
under subsection (h).
``(2) Transition period treatment of certain textile and
apparel articles.-``(A) Articles covered.--During the transition
period, the preferential treatment described in
subparagraph (B) shall apply to the following articles:
``(i) Apparel articles assembled in one or
more cbtpa beneficiary countries.--Apparel
articles assembled in one or more CBTPA
beneficiary countries from fabrics wholly formed
and cut in the United States, from yarns wholly
formed in the United States, (including fabrics
not formed from yarns, if such fabrics are
classifiable under heading 5602 or 5603 of the HTS
and are wholly formed and cut in the United
States) that are-``(I) entered under subheading
9802.00.80 of the HTS; or
``(II) entered under chapter 61 or
62 of the HTS, if, after such assembly,
the articles would have qualified for
entry under subheading 9802.00.80 of the
HTS but for the fact that the articles
were embroidered or subjected to stonewashing, enzyme-washing, acid washing,
perma-pressing, oven-baking, bleaching,
garment-dyeing, screen printing, or
other similar processes.
``(ii) Apparel articles cut and assembled in
one or more cbtpa beneficiary countries.--Apparel
articles cut in one or more CBTPA beneficiary
countries from fabric wholly formed in the United
States from yarns wholly formed in the United
States (including fabrics not formed from yarns,
if such fabrics are classifiable under heading

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5602 or 5603 of the HTS and are wholly formed in
the United States), if such articles are assembled
in one or more such countries with thread formed
in the United States.
``(iii) Certain knit apparel articles.--(I)
Apparel articles knit to shape (other than socks
provided for in heading 6115 of the HTS) in a
CBTPA beneficiary country from yarns wholly formed
in the United States,
[[Page 114 STAT. 278]]
and knit apparel articles (other than t-shirts
described in subclause (III)) cut and wholly
assembled in one or more CBTPA beneficiary
countries from fabric formed in one or more CBTPA
beneficiary countries or the United States from
yarns wholly formed in the United States
(including fabrics not formed from yarns, if such
fabrics are classifiable under heading 5602 or
5603 of the HTS and are formed in one or more
CBTPA beneficiary countries), in an amount not
exceeding the amount set forth in subclause (II).
``(II) The amount referred to in subclause (I)
is-``(aa) 250,000,000 square meter
equivalents during the 1-year period
beginning on October 1, 2000, increased
by 16 percent, compounded annually, in
each succeeding 1-year period through
September 30, 2004; and
``(bb) in each 1-year period
thereafter through September 30, 2008,
the amount in effect for the 1-year
period ending on September 30, 2004, or
such other amount as may be provided by
law.
``(III) T-shirts, other than underwear,
classifiable under subheadings 6109.10.00 and
6109.90.10 of the HTS, made in one or more CBTPA
beneficiary countries from fabric formed in one or
more CBTPA beneficiary countries from yarns wholly
formed in the United States, in an amount not
exceeding the amount set forth in subclause (IV).
``(IV) the amount referred to in subclause
(III) is-``(aa) 4,200,000 dozen during the 1year period beginning on October 1,
2000, increased by 16 percent,
compounded annually, in each succeeding
1-year period through September 30,
2004; and
``(bb) in each 1-year period
thereafter, the amount in effect for the
1-year period ending on September 30,
2004, or such other amount as may be
provided by law.
``(V) It is the sense of the Congress that the
Congress should determine, based on the record of
expansion of exports from the United States as a
result of the preferential treatment of articles
under this clause, the percentage by which the
amount provided in subclauses (II) and (IV) should
be compounded for the 1-year periods occurring
after the 1-year period ending on September 30,
2004.
``(iv) Certain other apparel articles.--(I)
Subject to subclause (II), any apparel article
classifiable under subheading 6212.10 of the HTS,
if the article is both cut and sewn or otherwise
assembled in the United States, or one or more of
the CBTPA beneficiary countries, or both.
``(II) During the 1-year period beginning on
October 1, 2001, and during each of the six
succeeding 1-year periods, apparel articles
described in subclause (I) of a producer or an
entity controlling production shall

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[[Page 114 STAT. 279]]
be eligible for preferential treatment under
subparagraph (B) only if the aggregate cost of
fabric components formed in the United States that
are used in the production of all such articles of
that producer or entity during the preceding 1year period is at least 75 percent of the
aggregate declared customs value of the fabric
contained in all such articles of that producer or
entity that are entered during the preceding 1year period.
``(III) The United States Customs Service
shall develop and implement methods and procedures
to ensure ongoing compliance with the requirement
set forth in subclause (II). If the Customs
Service finds that a producer or an entity
controlling production has not satisfied such
requirement in a 1-year period, then apparel
articles described in subclause (I) of that
producer or entity shall be ineligible for
preferential treatment under subparagraph (B)
during any succeeding 1-year period until the
aggregate cost of fabric components formed in the
United States used in the production of such
articles of that producer or entity in the
preceding 1-year period is at least 85 percent of
the aggregate declared customs value of the fabric
contained in all such articles of that producer or
entity that are entered during the preceding 1year period.
``(v) Apparel articles assembled from fabrics
or yarn not widely available in commercial
quantities.--(I) Apparel articles that are both
cut (or knit-to-shape) and sewn or otherwise
assembled in one or more CBTPA beneficiary
countries, from fabrics or yarn that is not formed
in the United States or in one or more CBTPA
beneficiary countries, to the extent that apparel
articles of such fabrics or yarn would be eligible
for preferential treatment, without regard to the
source of the fabrics or yarn, under Annex 401 of
the NAFTA.
``(II) At the request of any interested party,
the President is authorized to proclaim additional
fabrics and yarn as eligible for preferential
treatment under subclause (I) if-``(aa) the President determines that
such fabrics or yarn cannot be supplied
by the domestic industry in commercial
quantities in a timely manner;
``(bb) the President has obtained
advice regarding the proposed action
from the appropriate advisory committee
established under section 135 of the
Trade Act of 1974 (19 U.S.C. 2155) and
the United States International Trade
Commission;
``(cc) <> withi
n 60 days after the request, the
President has submitted a report to the
Committee on Ways and Means of the House
of Representatives and the Committee on
Finance of the Senate that sets forth
the action proposed to be proclaimed and
the reasons for such actions, and the
advice obtained under division (bb);
[[Page 114 STAT. 280]]
``(dd) a period of 60 calendar days,
beginning with the first day on which
the President has met the requirements
of division (cc), has expired; and
``(ee) the President has consulted
with such committees regarding the
proposed action during the period

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referred to in division (cc).
``(vi) Handloomed, handmade, and folklore
articles.--A handloomed, handmade, or folklore
article of a CBTPA beneficiary country identified
under subparagraph (C) that is certified as such
by the competent authority of such beneficiary
country.
``(vii) Special rules.-``(I) Exception for findings and
trimmings.--(aa) An article otherwise
eligible for preferential treatment
under this paragraph shall not be
ineligible for such treatment because
the article contains findings or
trimmings of foreign origin, if such
findings and trimmings do not exceed 25
percent of the cost of the components of
the assembled product. Examples of
findings and trimmings are sewing
thread, hooks and eyes, snaps, buttons,
`bow buds', decorative lace, trim,
elastic strips, zippers, including
zipper tapes and labels, and other
similar products. Elastic strips are
considered findings or trimmings only if
they are each less than 1 inch in width
and are used in the production of
brassieres.
``(bb) In the case of an article
described in clause (ii) of this
subparagraph, sewing thread shall not be
treated as findings or trimmings under
this subclause.
``(II) Certain interlining.--(aa) An
article otherwise eligible for
preferential treatment under this
paragraph shall not be ineligible for
such treatment because the article
contains certain interlinings of foreign
origin, if the value of such
interlinings (and any findings and
trimmings) does not exceed 25 percent of
the cost of the components of the
assembled article.
``(bb) Interlinings eligible for the
treatment described in division (aa)
include only a chest type plate, `hymo'
piece, or `sleeve header', of woven or
weft-inserted warp knit construction and
of coarse animal hair or man-made
filaments.
``(cc) The treatment described in
this subclause shall terminate if the
President makes a determination that
United States manufacturers are
producing such interlinings in the
United States in commercial quantities.
``(III) De minimis rule.--An article
that would otherwise be ineligible for
preferential treatment under this
paragraph because the article contains
fibers or yarns not wholly formed in the
United States or in one or more CBTPA
beneficiary countries shall not be
ineligible for such treatment if the
total weight of all such fibers or yarns
is
[[Page 114 STAT. 281]]
not more than 7 percent of the total
weight of the good. Notwithstanding the
preceding sentence, an apparel article
containing elastomeric yarns shall be
eligible for preferential treatment
under this paragraph only if such yarns
are wholly formed in the United States.
``(IV) Special origin rule.--An

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article otherwise eligible for
preferential treatment under clause (i)
or (ii) of this subparagraph shall not
be ineligible for such treatment because
the article contains nylon filament yarn
(other than elastomeric yarn) that is
classifiable under subheading
5402.10.30, 5402.10.60, 5402.31.30,
5402.31.60, 5402.32.30, 5402.32.60,
5402.41.10, 5402.41.90, 5402.51.00, or
5402.61.00 of the HTS duty-free from a
country that is a party to an agreement
with the United States establishing a
free trade area, which entered into
force before January 1, 1995.
``(viii) Textile luggage.--Textile luggage-``(I) assembled in a CBTPA
beneficiary country from fabric wholly
formed and cut in the United States,
from yarns wholly formed in the United
States, that is entered under subheading
9802.00.80 of the HTS; or
``(II) assembled from fabric cut in
a CBTPA beneficiary country from fabric
wholly formed in the United States from
yarns wholly formed in the United
States.
``(B) Preferential treatment.--Except as provided in
subparagraph (E), during the transition period, the
articles to which this subparagraph applies shall enter
the United States free of duty and free of any
quantitative restrictions, limitations, or consultation
levels.
``(C) Handloomed, handmade, and folklore articles.-For purposes of subparagraph (A)(vi), the President
shall consult with representatives of the CBTPA
beneficiary countries concerned for the purpose of
identifying particular textile and apparel goods that
are mutually agreed upon as being handloomed, handmade,
or folklore goods of a kind described in section 2.3(a),
(b), or (c) of the Annex or Appendix 3.1.B.11 of the
Annex.
``(D) Penalties for transshipments.-``(i) Penalties for exporters.--If the
President determines, based on sufficient
evidence, that an exporter has engaged in
transshipment with respect to textile or apparel
articles from a CBTPA beneficiary country, then
the President shall deny all benefits under this
title to such exporter, and any successor of such
exporter, for a period of 2 years.
``(ii) <> Penalties for
countries.--Whenever the President finds, based on
sufficient evidence, that transshipment has
occurred, the President shall request that the
CBTPA beneficiary country or countries through
whose territory the transshipment has occurred
take all necessary and appropriate actions
[[Page 114 STAT. 282]]
to prevent such transshipment. If the President
determines that a country is not taking such
actions, the President shall reduce the quantities
of textile and apparel articles that may be
imported into the United States from such country
by the quantity of the transshipped articles
multiplied by 3, to the extent consistent with the
obligations of the United States under the WTO.
``(iii) Transshipment described.-Transshipment within the meaning of this
subparagraph has occurred when preferential
treatment under subparagraph (B) has been claimed
for a textile or apparel article on the basis of
material false information concerning the country
of origin, manufacture, processing, or assembly of
the article or any of its components. For purposes
of this clause, false information is material if

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disclosure of the true information would mean or
would have meant that the article is or was
ineligible for preferential treatment under
subparagraph (B).
``(E) Bilateral emergency actions.-``(i) In general.--The President may take
bilateral emergency tariff actions of a kind
described in section 4 of the Annex with respect
to any apparel article imported from a CBTPA
beneficiary country if the application of tariff
treatment under subparagraph (B) to such article
results in conditions that would be cause for the
taking of such actions under such section 4 with
respect to a like article described in the same 8digit subheading of the HTS that is imported from
Mexico.
``(ii) Rules relating to bilateral emergency
action.--For purposes of applying bilateral
emergency action under this subparagraph-``(I) the requirements of paragraph
(5) of section 4 of the Annex (relating
to providing compensation) shall not
apply;
``(II) the term `transition period'
in section 4 of the Annex shall have the
meaning given that term in paragraph
(5)(D) of this subsection; and
``(III) the requirements to consult
specified in section 4 of the Annex
shall be treated as satisfied if the
President requests consultations with
the CBTPA beneficiary country in
question and the country does not agree
to consult within the time period
specified under section 4.
``(3) Transition period treatment of certain other articles
originating in beneficiary countries.-``(A) Equivalent tariff treatment.-``(i) In general.--Subject to clause (ii), the
tariff treatment accorded at any time during the
transition period to any article referred to in
any of subparagraphs (B) through (F) of paragraph
(1) that is a CBTPA originating good shall be
identical to the tariff treatment that is accorded
at such time under Annex 302.2 of the NAFTA to an
article described in the same 8-digit subheading
of the HTS that is a good of Mexico and is
imported into the United States.
[[Page 114 STAT. 283]]
``(ii) Exception.--Clause (i) does not apply
to any article accorded duty-free treatment under
U.S. Note 2(b) to subchapter II of chapter 98 of
the HTS.
``(B) Relationship to subsection (h) duty
reductions.--If at any time during the transition period
the rate of duty that would (but for action taken under
subparagraph (A)(i) in regard to such period) apply with
respect to any article under subsection (h) is a rate of
duty that is lower than the rate of duty resulting from
such action, then such lower rate of duty shall be
applied for the purposes of implementing such action.
``(4) Customs procedures.-``(A) In general.-``(i) Regulations.--Any importer that claims
preferential treatment under paragraph (2) or (3)
shall comply with customs procedures similar in
all material respects to the requirements of
Article 502(1) of the NAFTA as implemented
pursuant to United States law, in accordance with
regulations promulgated by the Secretary of the
Treasury.
``(ii) Determination.-``(I) <> In
general.--In order to qualify for the
preferential treatment under paragraph
(2) or (3) and for a Certificate of

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Origin to be valid with respect to any
article for which such treatment is
claimed, there shall be in effect a
determination by the President that each
country described in subclause (II)-``(aa) has implemented and
follows; or
``(bb) is making substantial
progress toward implementing and
following,
procedures and requirements similar in
all material respects to the relevant
procedures and requirements under
chapter 5 of the NAFTA.
``(II) Country described.--A country
is described in this subclause if it is
a CBTPA beneficiary country-``(aa) from which the
article is exported; or
``(bb) in which materials
used in the production of the
article originate or in which
the article or such materials
undergo production that
contributes to a claim that the
article is eligible for
preferential treatment under
paragraph (2) or (3).
``(B) Certificate of origin.--The Certificate of
Origin that otherwise would be required pursuant to the
provisions of subparagraph (A) shall not be required in
the case of an article imported under paragraph (2) or
(3) if such Certificate of Origin would not be required
under Article 503 of the NAFTA (as implemented pursuant
to United States law), if the article were imported from
Mexico.
``(C) Report by ustr on cooperation of other
countries concerning circumvention.--The United States
Commissioner of Customs shall conduct a study analyzing
the extent to which each CBTPA beneficiary country-[[Page 114 STAT. 284]]
``(i) has cooperated fully with the United
States, consistent with its domestic laws and
procedures, in instances of circumvention or
alleged circumvention of existing quotas on
imports of textile and apparel goods, to establish
necessary relevant facts in the places of import,
export, and, where applicable, transshipment,
including investigation of circumvention
practices, exchanges of documents, correspondence,
reports, and other relevant information, to the
extent such information is available;
``(ii) has taken appropriate measures,
consistent with its domestic laws and procedures,
against exporters and importers involved in
instances of false declaration concerning fiber
content, quantities, description, classification,
or origin of textile and apparel goods; and
``(iii) has penalized the individuals and
entities involved in any such circumvention,
consistent with its domestic laws and procedures,
and has worked closely to seek the cooperation of
any third country to prevent such circumvention
from taking place in that third country.
The <> Trade Representative
shall submit to Congress, not later than October 1,
2001, a report on the study conducted under this
subparagraph.
``(5) Definitions and special rules.--For purposes of this
subsection-``(A) Annex.--The term `the Annex' means Annex 300-B
of the NAFTA.
``(B) CBTPA beneficiary country.--The term `CBTPA
beneficiary country' means any `beneficiary country', as
defined in section 212(a)(1)(A) of this title, which the
President designates as a CBTPA beneficiary country,

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taking into account the criteria contained in
subsections (b) and (c) of section 212 and other
appropriate criteria, including the following:
``(i) Whether the beneficiary country has
demonstrated a commitment to-``(I) undertake its obligations
under the WTO, including those
agreements listed in section 101(d) of
the Uruguay Round Agreements Act, on or
ahead of schedule; and
``(II) participate in negotiations
toward the completion of the FTAA or
another free trade agreement.
``(ii) The extent to which the country
provides protection of intellectual property
rights consistent with or greater than the
protection afforded under the Agreement on TradeRelated Aspects of Intellectual Property Rights
described in section 101(d)(15) of the Uruguay
Round Agreements Act.
``(iii) The extent to which the country
provides internationally recognized worker rights,
including-``(I) the right of association;
``(II) the right to organize and
bargain collectively;
[[Page 114 STAT. 285]]
``(III) a prohibition on the use of
any form of forced or compulsory labor;
``(IV) a minimum age for the
employment of children; and
``(V) acceptable conditions of work
with respect to minimum wages, hours of
work, and occupational safety and
health;
``(iv) Whether the country has implemented its
commitments to eliminate the worst forms of child
labor, as defined in section 507(6) of the Trade
Act of 1974.
``(v) The extent to which the country has met
the counter-narcotics certification criteria set
forth in section 490 of the Foreign Assistance Act
of 1961 (22 U.S.C. 2291j) for eligibility for
United States assistance.
``(vi) The extent to which the country has
taken steps to become a party to and implements
the Inter-American Convention Against Corruption.
``(vii) The extent to which the country-``(I) applies transparent,
nondiscriminatory, and competitive
procedures in government procurement
equivalent to those contained in the
Agreement on Government Procurement
described in section 101(d)(17) of the
Uruguay Round Agreements Act; and
``(II) contributes to efforts in
international fora to develop and
implement international rules in
transparency in government procurement.
``(C) CBTPA originating good.-``(i) In general.--The term `CBTPA originating
good' means a good that meets the rules of origin
for a good set forth in chapter 4 of the NAFTA as
implemented pursuant to United States law.
``(ii) Application of chapter 4.--In applying
chapter 4 of the NAFTA with respect to a CBTPA
beneficiary country for purposes of this
subsection-``(I) no country other than the
United States and a CBTPA beneficiary
country may be treated as being a party
to the NAFTA;
``(II) any reference to trade
between the United States and Mexico
shall be deemed to refer to trade
between the United States and a CBTPA

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beneficiary country;
``(III) any reference to a party
shall be deemed to refer to a CBTPA
beneficiary country or the United
States; and
``(IV) any reference to parties
shall be deemed to refer to any
combination of CBTPA beneficiary
countries or to the United States and
one or more CBTPA beneficiary countries
(or any combination thereof ).
``(D) Transition period.--The term `transition
period' means, with respect to a CBTPA beneficiary
country, the period that begins on October 1, 2000, and
ends on the earlier of-``(i) September 30, 2008; or
[[Page 114 STAT. 286]]
``(ii) the date on which the FTAA or another
free trade agreement that makes substantial
progress in achieving the negotiating objectives
set forth in 108(b)(5) of Public Law 103-182 (19
U.S.C. 3317(b)(5)) enters into force with respect
to the United States and the CBTPA beneficiary
country.
``(E) CBTPA.--The term `CBTPA' means the United
States-Caribbean Basin Trade Partnership Act.
``(F) FTAA.--The term `FTAA' means the Free Trade
Area of the Americas.''.
(b) Determination Regarding Retention of Designation.--Section
212(e) of the Caribbean Basin Economic Recovery Act (19 U.S.C. 2702(e))
is amended-(1) in paragraph (1)-(A) by redesignating subparagraphs (A) and (B) as
clauses (i) and (ii), respectively;
(B) by inserting ``(A)'' after ``(1)''; and
(C) by adding at the end the following:
``(B) The President may, after the requirements of subsection (a)(2)
and paragraph (2) have been met-``(i) withdraw or suspend the designation of any country as
a CBTPA beneficiary country; or
``(ii) withdraw, suspend, or limit the application of
preferential treatment under section 213(b)(2) and (3) to any
article of any country,
if, after such designation, the President
of changed circumstances, the performance
satisfactory under the criteria set forth
and
(2) by adding after paragraph
paragraph:

determines that, as a result
of such country is not
in section 213(b)(5)(B).'';
(2) the following new

``(3) If preferential treatment under section 213(b)(2) and (3) is
withdrawn, suspended, or limited with respect to a CBTPA beneficiary
country, such country shall not be deemed to be a `party' for the
purposes of applying section 213(b)(5)(C) to imports of articles for
which preferential treatment has been withdrawn, suspended, or limited
with respect to such country.''.
(c) Reporting Requirements.-(1) Section 212(f ) of the Caribbean Basin Economic Recovery
Act (19 U.S.C. 2702(f )) is amended to read as follows:
``(f ) Reporting Requirements.-``(1) <> In general.--Not later than
December 31, 2001, and every 2 years thereafter during the
period this title is in effect, the United States Trade
Representative shall submit to Congress a report regarding the
operation of this title, including-``(A) with respect to subsections (b) and (c), the
results of a general review of beneficiary countries
based on the considerations described in such
subsections; and
``(B) the performance of each beneficiary country or
CBTPA beneficiary country, as the case may be, under the
criteria set forth in section 213(b)(5)(B).

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``(2) <> Public
comment.--Before submitting the report described in paragraph
(1), the United States Trade Representative shall publish a
notice in the Federal Register requesting public comments on
whether beneficiary countries are meeting the criteria listed in
section 213(b)(5)(B).''.
[[Page 114 STAT. 287]]
(2) Section 203(f ) of the Andean Trade Preference Act (19
U.S.C. 3202(f )) is amended-(A) by striking ``Triennial Report'' in the heading
and inserting ``Report''; and
(B) by striking ``On or before'' and all that
follows through ``enactment of this title'' and
inserting ``Not later than January 31, 2001''.
(d) International Trade Commission Reports.-(1) Section 215(a) of the Caribbean Basin Economic Recovery
Act (19 U.S.C. 2704(a)) is amended to read as follows:
``(a) Reporting Requirement.-``(1) In general.--The United States International Trade
Commission (in this section referred to as the `Commission')
shall submit to Congress and the President biennial reports
regarding the economic impact of this title on United States
industries and consumers and on the economy of the beneficiary
countries.
``(2) <> First report.--The first report
shall be submitted not later than September 30, 2001.
``(3) Treatment of puerto rico, etc.--For purposes of this
section, industries in the Commonwealth of Puerto Rico and the
insular possessions of the United States are considered to be
United States industries.''.
(2) Section 206(a) of the Andean Trade Preference Act (19
U.S.C. 3204(a)) is amended to read as follows:
``(a) Reporting Requirements.-``(1) In general.--The United States International Trade
Commission (in this section referred to as the `Commission')
shall submit to Congress and the President biennial reports
regarding the economic impact of this title on United States
industries and consumers, and, in conjunction with other
agencies, the effectiveness of this title in promoting drugrelated crop eradication and crop substitution efforts of the
beneficiary countries.
``(2) Submission.--During the period that this title is in
effect, the report required by paragraph (1) shall be submitted
on December 31 of each year that the report required by section
215 of the Caribbean Basin Economic Recovery Act is not
submitted.
``(3) Treatment of puerto rico, etc.--For purposes of this
section, industries in the Commonwealth of Puerto Rico and the
insular possessions of the United States are considered to be
United States industries.''.
(e) Technical and Conforming Amendments.-(1) In general.-(A) Section 211 of the Caribbean Basin Economic
Recovery Act (19 U.S.C. 2701) is amended by inserting
``(or other preferential treatment)'' after
``treatment''.
(B) Section 213(a)(1) of the Caribbean Basin
Economic Recovery Act (19 U.S.C. 2703(a)(1)) is amended
by inserting ``and except as provided in subsection
(b)(2) and (3),'' after ``Tax Reform Act of 1986,''.
(2) Definitions.--Section 212(a)(1) of the Caribbean Basin
Economic Recovery Act (19 U.S.C. 2702(a)(1)) is amended by
adding at the end the following new subparagraphs:
[[Page 114 STAT. 288]]
``(D) The term `NAFTA' means the North American Free
Trade Agreement entered into between the United States,
Mexico, and Canada on December 17, 1992.
``(E) The terms `WTO' and `WTO member' have the
meanings given those terms in section 2 of the Uruguay
Round Agreements Act (19 U.S.C. 3501).''.

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SEC. 212. DUTY-FREE TREATMENT FOR CERTAIN BEVERAGES MADE WITH CARIBBEAN
RUM.
Section 213(a)
U.S.C. 2703(a)) is
(1) in
``title'';
(2) by

of the Caribbean Basin Economic Recovery Act (19
amended-paragraph (5), by striking ``chapter'' and inserting
and
adding at the end the following new paragraph:

``(6) Notwithstanding paragraph (1), the duty-free treatment
provided under this title shall apply to liqueurs and spirituous
beverages produced in the territory of Canada from rum if-``(A) such rum is the growth, product, or manufacture of a
beneficiary country or of the Virgin Islands of the United
States;
``(B) such rum is imported directly from a beneficiary
country or the Virgin Islands of the United States into the
territory of Canada, and such liqueurs and spirituous beverages
are imported directly from the territory of Canada into the
customs territory of the United States;
``(C) when imported into the customs territory of the United
States, such liqueurs and spirituous beverages are classified in
subheading 2208.90 or 2208.40 of the HTS; and
``(D) such rum accounts for at least 90 percent by volume of
the alcoholic content of such liqueurs and spirituous
beverages.''.
SEC. <> 213. MEETINGS OF TRADE MINISTERS AND
USTR.
(a) <> Schedule of Meetings.--The President shall
take the necessary steps to convene a meeting with the trade ministers
of the CBTPA beneficiary countries in order to establish a schedule of
regular meetings, to commence as soon as is practicable, of the trade
ministers and the Trade Representative, for the purpose set forth in
subsection (b).
(b) Purpose.--The purpose of the meetings scheduled under subsection
(a) is to reach agreement between the United States and CBTPA
beneficiary countries on the likely timing and procedures for initiating
negotiations for CBTPA beneficiary countries to enter into mutually
advantageous free trade agreements with the United States that contain
provisions comparable to those in the NAFTA and would make substantial
progress in achieving the negotiating objectives set forth in section
108(b)(5) of Public Law 103-182 (19 U.S.C. 3317(b)(5)).
(c) Definition.--In this section, the term ``CBTPA beneficiary
country'' has the meaning given that term in section 213(b)(5)(B) of the
Caribbean Basin Economic Recovery Act.
TITLE III--NORMAL TRADE RELATIONS
SEC. <> 301. NORMAL TRADE RELATIONS FOR
ALBANIA.
(a) Findings.--Congress makes the following findings:
[[Page 114 STAT. 289]]
(1) Albania has been found to be in full compliance with the
freedom of emigration requirements under title IV of the Trade
Act of 1974.
(2) Since its emergence from communism, Albania has made
progress toward democratic rule and the creation of a freemarket economy.
(3) Albania has concluded a bilateral investment treaty with
the United States.
(4) Albania has demonstrated a strong desire to build a
friendly relationship with the United States and has been very
cooperative with NATO and the international community during and
after the Kosova crisis.
(5) The extension of unconditional normal trade relations
treatment to the products of Albania will enable the United
States to avail itself of all rights under the World Trade
Organization with respect to Albania when that country becomes a
member of the World Trade Organization.
(b) Termination of Application of Title IV of the Trade Act of 1974

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to Albania.-(1) Presidential determinations and extensions of
nondiscriminatory treatment.--Notwithstanding any provision of
title IV of the Trade Act of 1974 (19 U.S.C. 2431 et seq.), the
President may-(A) determine that such title should no longer apply
to Albania; and
(B) after making a determination under subparagraph
(A) with respect to Albania, proclaim the extension of
nondiscriminatory treatment (normal trade relations
treatment) to the products of that country.
(2) Termination of application of title iv.--On or after the
effective date of the extension under paragraph (1)(B) of
nondiscriminatory treatment to the products of Albania, title IV
of the Trade Act of 1974 shall cease to apply to that country.
SEC. <> 302. NORMAL TRADE RELATIONS FOR
KYRGYZSTAN.
(a) Findings.--Congress makes the following findings:
(1) Kyrgyzstan has been found to be in full compliance with
the freedom of emigration requirements under title IV of the
Trade Act of 1974.
(2) Since its independence from the Soviet Union in 1991,
Kyrgyzstan has made great progress toward democratic rule and
toward creating a free-market economic system.
(3) Kyrgyzstan concluded a bilateral investment treaty with
the United States in 1994.
(4) Kyrgyzstan has demonstrated a strong desire to build a
friendly and cooperative relationship with the United States.
(5) The extension of unconditional normal trade relations
treatment to the products of Kyrgyzstan will enable the United
States to avail itself of all rights under the World Trade
Organization with respect to Kyrgyzstan.
(b) Termination of Application of Title IV of the Trade Act of 1974
to Kyrgyzstan.-(1) Presidential determinations and extensions of
nondiscriminatory treatment.--Notwithstanding any provision of
title IV of the Trade Act of 1974 (19 U.S.C. 2431 et seq.), the
President may-[[Page 114 STAT. 290]]
(A) determine that such title should no longer apply
to Kyrgyzstan; and
(B) after making a determination under subparagraph
(A) with respect to Kyrgyzstan, proclaim the extension
of nondiscriminatory treatment (normal trade relations
treatment) to the products of that country.
(2) Termination of application of title iv.--On or after the
effective date of the extension under paragraph (1)(B) of
nondiscriminatory treatment to the products of Kyrgyzstan, title
IV of the Trade Act of 1974 shall cease to apply to that
country.
TITLE IV--OTHER TRADE PROVISIONS
SEC. 401. REPORT ON EMPLOYMENT AND TRADE ADJUSTMENT ASSISTANCE.
(a) <> In General.--Not later than 9 months after
the date of the enactment of this section, the Comptroller General of
the United States shall submit to Congress a report regarding the
efficiency and effectiveness of Federal and State coordination of
employment and retraining activities associated with the following
programs and legislation:
(1) Trade adjustment assistance (including NAFTA trade
adjustment assistance) provided for under title II of the Trade
Act of 1974.
(2) The Job Training Partnership Act.
(3) The Workforce Investment Act of 1998.
(4) Unemployment insurance.
(b) Period Covered.--The report shall cover the activities involved
in the programs and legislation listed in subsection (a) from January 1,
1994, to December 31, 1999.
(c) Data and Recommendations.--The report shall at a minimum include
specific data and recommendations regarding--

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(1) the compatibility of program requirements related to the
employment and retraining of dislocated workers in the United
States, with particular emphasis on the trade adjustment
assistance programs provided for under title II of the Trade Act
of 1974;
(2) the compatibility of application procedures related to
the employment and retraining of dislocated workers in the
United States;
(3) the capacity of the programs in addressing foreign trade
and the transfer of production to other countries on workers in
the United States measured in terms of loss of employment and
wages;
(4) the capacity of the programs in addressing foreign trade
and the transfer of production to other countries on secondary
workers in the United States measured in terms of loss of
employment and wages;
(5) how the impact of foreign trade and the transfer of
production to other countries would have changed the number of
beneficiaries covered under the trade adjustment assistance
program if the trade adjustment assistance program covered
secondary workers in the United States; and
(6) the effectiveness of the programs described in
subsection (a) in achieving reemployment of United States
workers and
[[Page 114 STAT. 291]]
maintaining wage levels of United States workers who have been
dislocated as a result of foreign trade and the transfer of
production to other countries.
SEC. 402. TRADE ADJUSTMENT ASSISTANCE.
(a) Certification of Eligibility for Workers Required for
Decommissioning or Closure of Facility.-(1) In general.--Notwithstanding any other provision of law
or any decision by the Secretary of Labor denying certification
or eligibility for certification for adjustment assistance under
title II of the Trade Act of 1974, a qualified worker described
in paragraph (2) shall be certified by the Secretary as eligible
to apply for adjustment assistance under such title II.
(2) Qualified worker.--For purposes of this subsection, a
``qualified worker'' means a worker who-(A) was determined to be covered under Trade
Adjustment Assistance Certification TA-W-28,438; and
(B) was necessary for the decommissioning or closure
of a nuclear power facility.
(b) Effective Date.--The amendment made by this section shall take
effect on the date of the enactment of this Act.
SEC. 403. RELIQUIDATION OF CERTAIN NUCLEAR FUEL ASSEMBLIES.
(a) <> In General.--Notwithstanding section 514 of
the Tariff Act of 1930 (19 U.S.C. 1514) or any other provision of law,
upon proper request filed with the Secretary of the Treasury not later
than 90 days after the date of the enactment of this Act, the Secretary
shall-(1) reliquidate as free of duty the entries listed in
subsection (b); and
(2) refund any duties paid with respect to such entries as
shown on Customs Service Collection Receipt Number 527006753.
(b) Entries.--The entries referred to in subsection (a) are as
follows:
Entry number

Date of entry

062-2320014-5.........January 16, 1996
062-2320085-5.........February 13, 1996
839-4030989-7.........November 25, 1996
839-4031053-1.........December 2, 1996
839-4031591-0.........January 21, 1997.

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SEC. 404. REPORTS TO THE FINANCE AND WAYS AND MEANS COMMITTEES.
(a) Reports Regarding Initiatives To Update the International
Monetary Fund.--Section 607 of the Foreign Operations, Export Financing,
and Related Appropriations Act, 1999 (as contained in section 101(d) of
division A of the Omnibus Consolidated and Emergency Supplemental
Appropriations Act, 1999) (Public Law 105-277; 112 Stat. 2681224), <> relating to international financial
programs and reform, is amended-(1) by inserting ``Finance,'' after ``Foreign Relations,'';
and
(2) by inserting ``, Ways and Means,'' before ``and Banking
and Financial Services''.
[[Page 114 STAT. 292]]
(b) Reports on Financial Stabilization Programs.--Section 1704(b) of
the International Financial Institutions Act (22 U.S.C. 262r-3(b)) is
amended to read as follows:
``(b) <> Timing.--Not later than March 15, 1999,
and semiannually thereafter, the Secretary of the Treasury shall submit
to the Committees on Banking and Financial Services, Ways and Means, and
International Relations of the House of Representatives and the
Committees on Finance, Foreign Relations, and Banking, Housing, and
Urban Affairs of the Senate a report on the matters described in
subsection (a).''.
(c) Annual Report on the State of the International Financial
System, IMF Reform, and Compliance With IMF Agreements.--Section 1705(a)
of the International Financial Institutions Act (22 U.S.C. 262r-4(a)) is
amended by striking ``Committee on Banking and Financial Services of the
House of Representatives and the Committee on Foreign Relations of the
Senate'' and inserting ``Committees on Banking and Financial Services
and on Ways and Means of the House of Representatives and the Committees
on Finance and on Foreign Relations of the Senate''.
(d) Audits of the IMF.--Section 1706(a) of the International
Financial Institutions Act (22 U.S.C. 262r-5(a)) is amended by striking
``Committee on Banking and Financial Services of the House of
Representatives and the Committee on Foreign Relations of the Senate''
and inserting ``Committees on Banking and Financial Services and on Ways
and Means of the House of Representatives and the Committees on Finance
and on Foreign Relations of the Senate''.
(e) Report on Protection of Borders Against Drug Traffic.--Section
629 of the Treasury and General Government Appropriations Act, 1999 (as
contained in section 101(h) of division A of the Omnibus Consolidated
and Emergency Supplemental Appropriations Act, 1999) (Public Law 105277; 112 Stat. 2681-522), relating to general provisions, is amended by
adding at the end the following new paragraph:
``(3) For purposes of paragraph (1), the term `appropriate
congressional committees' includes the Committee on Finance of the
Senate and the Committee on Ways and Means of the House of
Representatives.''.
SEC. 405. CLARIFICATION OF SECTION 334 OF THE URUGUAY ROUND AGREEMENTS
ACT.
(a) In General.--Section 334(b)(2) of the Uruguay Round Agreements
Act (19 U.S.C. 3592(b)(2)) is amended-(1) by redesignating subparagraphs (A) and (B) as clauses
(i) and (ii), respectively;
(2) in the matter preceding clause (i) (as redesignated), by
striking ``Notwithstanding paragraph (1)(D)'' and inserting
``(A) Notwithstanding paragraph (1)(D) and except as provided in
subparagraphs (B) and (C)''; and
(3) by adding at the end the following:
``(B) Notwithstanding paragraph (1)(C), fabric classified
under the HTS as of silk, cotton, man-made fiber, or vegetable
fiber shall be considered to originate in, and be the growth,
product, or manufacture of, the country, territory, or
possession in which the fabric is both dyed and printed when
accompanied by two or more of the following finishing
operations: bleaching,
[[Page 114 STAT. 293]]
shrinking, fulling, napping, decating, permanent stiffening,
weighting, permanent embossing, or moireing.
``(C) Notwithstanding paragraph (1)(D), goods classified

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under HTS heading 6117.10, 6213.00, 6214.00, 6302.22, 6302.29,
6302.52, 6302.53, 6302.59, 6302.92, 6302.93, 6302.99, 6303.92,
6303.99, 6304.19, 6304.93, 6304.99, 9404.90.85, or 9404.90.95,
except for goods classified under such headings as of cotton or
of wool or consisting of fiber blends containing 16 percent or
more by weight of cotton, shall be considered to originate in,
and be the growth, product, or manufacture of, the country,
territory, or possession in which the fabric is both dyed and
printed when accompanied by two or more of the following
finishing operations: bleaching, shrinking, fulling, napping,
decating, permanent stiffening, weighting, permanent embossing,
or moireing.''.
(b) <> Effective Date.--The
amendments made by this section apply to goods entered, or withdrawn
from warehouse for consumption, on or after the date of the enactment of
this Act.
SEC. 406. CHIEF AGRICULTURAL NEGOTIATOR.
Section 141 of the Trade Act of 1974 (19 U.S.C. 2171) is amended-(1) by amending subsection (b)(2) to read as follows:
``(2) <> There shall be in the Office
three Deputy United States Trade Representatives and one Chief
Agricultural Negotiator who shall be appointed by the President,
by and with the advice and consent of the Senate. As an exercise
of the rulemaking power of the Senate, any nomination of a
Deputy United States Trade Representative or the Chief
Agricultural Negotiator submitted to the Senate for its advice
and consent, and referred to a committee, shall be referred to
the Committee on Finance. Each Deputy United States Trade
Representative and the Chief Agricultural Negotiator shall hold
office at the pleasure of the President and shall have the rank
of Ambassador.''; and
(2) in subsection (c), by adding at the end the following
new paragraph:
``(5) The principal function of the Chief Agricultural
Negotiator shall be to conduct trade negotiations and to enforce
trade agreements relating to United States agricultural products
and services. The Chief Agricultural Negotiator shall be a
vigorous advocate on behalf of United States agricultural
interests. The Chief Agricultural Negotiator shall perform such
other functions as the United States Trade Representative may
direct.''.
SEC. 407. REVISION OF RETALIATION LIST OR OTHER REMEDIAL ACTION.
Section 306(b)(2) of the Trade Act of 1974 (19 U.S.C. 2416(b)(2)) is
amended-(1) by striking ``If the'' and inserting the following:
``(A) Failure to implement recommendation.--If
the''; and
(2) by adding at the end the following:
``(B) Revision of retaliation list and action.-``(i) In general.--Except as provided in
clause (ii), in the event that the United States
initiates a retaliation list or takes any other
action described in
[[Page 114 STAT. 294]]
section 301(c)(1)(A) or (B) against the goods of a
foreign country or countries because of the
failure of such country or countries to implement
the recommendation made pursuant to a dispute
settlement proceeding under the World Trade
Organization, the Trade Representative shall
periodically revise the list or action to affect
other goods of the country or countries that have
failed to implement the recommendation.
``(ii) Exception.--The Trade Representative is
not required to revise the retaliation list or the
action described in clause (i) with respect to a
country, if-``(I) the Trade Representative
determines that implementation of a
recommendation made pursuant to a
dispute settlement proceeding described

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in clause (i) by the country is
imminent; or
``(II) the Trade Representative
together with the petitioner involved in
the initial investigation under this
chapter (or if no petition was filed,
the affected United States industry)
agree that it is unnecessary to revise
the retaliation list.
``(C) <> Schedule for revising list
or action.--The Trade Representative shall, 120 days
after the date the retaliation list or other section
301(a) action is first taken, and every 180 days
thereafter, review the list or action taken and revise,
in whole or in part, the list or action to affect other
goods of the subject country or countries.
``(D) Standards for revising list or action.--In
revising any list or action against a country or
countries under this subsection, the Trade
Representative shall act in a manner that is most likely
to result in the country or countries implementing the
recommendations adopted in the dispute settlement
proceeding or in achieving a mutually satisfactory
solution to the issue that gave rise to the dispute
settlement proceeding. The Trade Representative shall
consult with the petitioner, if any, involved in the
initial investigation under this chapter.
``(E) Retaliation list.--The term `retaliation list'
means the list of products of a foreign country or
countries that have failed to comply with the report of
the panel or Appellate Body of the WTO and with respect
to which the Trade Representative is imposing duties
above the level that would otherwise be imposed under
the Harmonized Tariff Schedule of the United States.
``(F) Requirement to include reciprocal goods on
retaliation list.--The Trade Representative shall
include on the retaliation list, and on any revised
lists, reciprocal goods of the industries affected by
the failure of the foreign country or countries to
implement the recommendation made pursuant to a dispute
settlement proceeding under the World Trade
Organization, except in cases where existing retaliation
and its corresponding preliminary retaliation list do
not already meet this requirement.''.
SEC. 408. REPORT ON TRADE ADJUSTMENT ASSISTANCE FOR AGRICULTURAL
COMMODITY PRODUCERS.
(a) <> In General.--Not later than 4 months after
the date of the enactment of this Act, the Secretary of Labor, in
consultation
[[Page 114 STAT. 295]]
with the Secretary of Agriculture and the Secretary of Commerce, shall
submit to the Committee on Ways and Means of the House of
Representatives and the Committee on Finance of the Senate a report
that-(1) examines the applicability to agricultural commodity
producers of trade adjustment assistance programs established
under title II of the Trade Act of 1974; and
(2) sets forth recommendations to improve the operation of
those programs as the programs apply to agricultural commodity
producers or to establish a new trade adjustment assistance
program for agricultural commodity producers.
(b) Contents.--In preparing the report required by subsection (a),
the Secretary of Labor shall-(1) assess the degree to which the existing trade adjustment
assistance programs address the adverse effects on agricultural
commodity producers due to price suppression caused by increased
imports of like or directly competitive agricultural
commodities; and
(2) examine the effectiveness of the program benefits
authorized under subchapter B of chapter 2 and chapter 3 of
title II of the Trade Act of 1974 in remedying the adverse
effects, including price suppression, caused by increased
imports of like or directly competitive agricultural

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commodities.
(c) Definitions.--In this section:
(1) Agricultural commodity.--The term ``agricultural
commodity'' means any agricultural commodity, including
livestock, fish or harvested seafood in its raw or natural
state.
(2) Agricultural commodity producer.--The term
``agricultural commodity producer'' means any person who is
engaged in the production and sale of an agricultural commodity
in the United States and who owns or shares the ownership and
risk of loss of the agricultural commodity.
SEC. <> 409. AGRICULTURAL TRADE NEGOTIATING
OBJECTIVES AND CONSULTATIONS WITH CONGRESS.
(a) Findings.--Congress finds that-(1) United States agriculture contributes positively to the
United States balance of trade and United States agricultural
exports support in excess of 1,000,000 United States jobs;
(2) United States agriculture competes successfully
worldwide despite the fact that United States producers are at a
competitive disadvantage because of the trade distorting support
and subsidy practices of other countries and despite the fact
that significant tariff and nontariff barriers exist to United
States exports; and
(3) a successful conclusion of the current World Trade
Organization agricultural negotiations is critically important
to the United States agricultural sector.
(b) Objectives.--The agricultural trade negotiating objectives of
the United States with respect to the current World Trade Organization
agricultural negotiations include as matters of the highest priority-(1) the expeditious elimination of all export subsidies
worldwide while maintaining bona fide food aid and preserving
United States market development and export credit programs that
allow the United States to compete with other foreign export
promotion efforts;
[[Page 114 STAT. 296]]
(2) leveling the playing field for United States producers
of agricultural products by eliminating blue box subsidies and
disciplining domestic supports in a way that forces producers to
face world prices on all production in excess of domestic food
security needs while allowing the preservation of nontrade
distorting programs to support family farms and rural
communities;
(3) the elimination of state trading enterprises or the
adoption of rigorous disciplines that ensure operational
transparency, competition, and the end of discriminatory pricing
practices, including policies supporting cross-subsidization and
price undercutting in export markets;
(4) affirming that the World Trade Organization Agreement on
the Application of Sanitary and Phytosanitary Measures applies
to new technologies, including biotechnology, and that labeling
requirements to allow consumers to make choices regarding
biotechnology products or other regulatory requirements may not
be used as disguised barriers to trade;
(5) increasing opportunities for United States exports of
agricultural products by reducing tariffs to the same levels
that exist in the United States or to lower levels and by
eliminating all nontariff barriers, including-(A) restrictive or trade distorting practices,
including those that adversely impact perishable or
cyclical products;
(B) restrictive rules in the administration of
tariff-rate quotas; and
(C) other barriers to agriculture trade, including
unjustified restrictions or commercial requirements
affecting new technologies, including biotechnology;
(6) eliminating government policies that create pricedepressing surpluses; and
(7) strengthening dispute settlement procedures to ensure
prompt compliance by foreign governments with their World Trade
Organization obligations including commitments not to maintain
unjustified restrictions on United States exports.

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(c) Consultation With Congressional Committees.-(1) Consultation before offer made.--In developing and
before submitting an initial or revised negotiating proposal
that would reduce United States tariffs on agricultural products
or require a change in United States agricultural law, the
United States Trade Representative shall consult with the
Committee on Agriculture, Nutrition, and Forestry and the
Committee on Finance of the Senate and the Committee on
Agriculture and the Committee on Ways and Means of the House of
Representatives.
(2) Consultation with congressional trade advisers.--Prior
to and during the course of current negotiations on agricultural
trade, the United States Trade Representative shall consult
closely with the congressional trade advisers.
(3) Consultation before agreement initialed.--Not less than
48 hours before initialing an agreement reached as part of
current World Trade Organization agricultural negotiations, the
United States Trade Representative shall consult closely with
the committees referred to in paragraph (1) regarding-(A) the details of the agreement;
(B) the potential impact of the agreement on United
States agricultural producers; and
[[Page 114 STAT. 297]]
(C) any changes in United States law necessary to
implement the agreement.
(4) Disclosure of commitments.--Any agreement or other
understanding addressing agricultural trade with a foreign
government or governments (whether oral or in writing) that
relates to a trade agreement with respect to which Congress must
enact implementing legislation and that is not disclosed to
Congress before legislation implementing that agreement is
introduced in either House of Congress shall not be considered
to be part of the agreement approved by Congress and shall have
no force and effect under United States law or in any dispute
settlement body.
(d) Sense of the Congress.--It is the sense of the Congress that-(1) granting the President trade negotiating authority is
essential to the successful conclusion of the new round of World
Trade Organization agricultural negotiations;
(2) reaching a successful agreement on agriculture should be
the top priority of United States negotiators; and
(3) if by the conclusion of the negotiations, the primary
agricultural competitors of the United States do not agree to
reduce their trade distorting domestic supports and eliminate
export subsidies in accordance with the negotiating objectives
expressed in this section, the United States should take steps
to increase the leverage of United States negotiators and level
the playing field for United States producers.
SEC. 410. ENTRY PROCEDURES FOR FOREIGN TRADE ZONE OPERATIONS.
(a) In General.--Section 484 of the Tariff Act of 1930 (19 U.S.C.
1484) is amended by adding at the end the following new subsection:
``(i) Special Rule For Foreign Trade Zone Operations.-``(1) In general.--Notwithstanding any other provision of
law and except as provided in paragraph (3), all merchandise
(including merchandise of different classes, types, and
categories), withdrawn from a foreign trade zone during any 7day period, shall, at the option of the operator or user of the
zone, be the subject of a single estimated entry or release
filed on or before the first day of the 7-day period in which
the merchandise is to be withdrawn from the zone. The estimated
entry or release shall be treated as a single entry and a single
release of merchandise for purposes of section 13031(a)(9)(A) of
the Consolidated Omnibus Budget Reconciliation Act of 1985 (19
U.S.C. 58c(a)(9)(A)) and all fee exclusions and limitations of
such section 13031 shall apply, including the maximum and
minimum fee amounts provided for under subsection (b)(8)(A)(i)
of such section. The entry summary for the estimated entry or
release shall cover only the merchandise actually withdrawn from
the foreign trade zone during the 7-day period.
``(2) Other requirements.--The Secretary of the Treasury may
require that the operator or user of the zone-``(A) use an electronic data interchange approved by
the Customs Service--

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``(i) to file the entries described in
paragraph (1); and
[[Page 114 STAT. 298]]
``(ii) to pay the applicable duties, fees, and
taxes with respect to the entries; and
``(B) satisfy the Customs Service that accounting,
transportation, and other controls over the merchandise
are adequate to protect the revenue and meet the
requirements of other Federal agencies.
``(3) Exception.--The provisions of paragraph (1) shall not
apply to merchandise the entry of which is prohibited by law or
merchandise for which the filing of an entry summary is required
before the merchandise is released from customs custody.
``(4) Foreign trade zone; zone.--In this subsection, the
terms `foreign trade zone' and `zone' mean a zone established
pursuant to the Act of June 18, 1934, commonly known as the
Foreign Trade Zones Act (19 U.S.C. 81a et seq.).''.
(b) <> Effective Date.--The amendment made
by this section shall take effect on the date that is 60 days after the
date of the enactment of this Act.
SEC. 411. GOODS MADE WITH FORCED OR INDENTURED CHILD LABOR.
(a) In General.--Section 307 of the Tariff Act of 1930 (19 U.S.C.
1307) is amended by adding at the end the following new sentence: ``For
purposes of this section, the term `forced labor or/and indentured
labor' includes forced or indentured child labor.''.
(b) <> Effective Date.--The amendment made
by this section shall take effect on the date of the enactment of this
Act.
SEC. 412. WORST FORMS OF CHILD LABOR.
(a) In General.--Section 502(b)(2) of the Trade Act of 1974 (19
U.S.C. 2462(b)(2)) is amended-(1) by inserting after subparagraph (G) the following new
subparagraph:
``(H) Such country has not implemented its
commitments to eliminate the worst forms of child
labor.''; and
(2) in the flush paragraph at the end, by striking ``and
(G)'' and inserting ``(G), and (H) (to the extent described in
section 507(6)(D))''.
(b) Definition of Worst Forms Of Child Labor.--Section 507 of the
Trade Act of 1974 (19 U.S.C. 2467) is amended by adding at the end the
following new paragraph:
``(6) Worst forms of child labor.--The term `worst forms of
child labor' means-``(A) all forms of slavery or practices similar to
slavery, such as the sale or trafficking of children,
debt bondage and serfdom, or forced or compulsory labor,
including forced or compulsory recruitment of children
for use in armed conflict;
``(B) the use, procuring, or offering of a child for
prostitution, for the production of pornography or for
pornographic purposes;
``(C) the use, procuring, or offering of a child for
illicit activities in particular for the production and
trafficking of drugs; and
``(D) work which, by its nature or the circumstances
in which it is carried out, is likely to harm the
health, safety, or morals of children.
[[Page 114 STAT. 299]]
The work referred to in subparagraph (D) shall be determined by
the laws, regulations, or competent authority of the beneficiary
developing country involved.''.
(c) Annual Report.--Section 504 of the Trade Act of 1974 (19 U.S.C.
2464) is amended by inserting ``, including the findings of the
Secretary of Labor with respect to the beneficiary country's
implementation of its international commitments to eliminate the worst
forms of child labor'' before the end period.

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TITLE V--IMPORTS OF CERTAIN WOOL ARTICLES
SEC. 501. TEMPORARY DUTY REDUCTIONS.
(a) Certain Worsted Wool Fabrics With Average Fiber Diameters
Greater Than 18.5 Micron.-(1) In general.--Subchapter II of chapter 99 of the
Harmonized Tariff Schedule of the United States is amended by
inserting in numerical sequence the following new heading:
``

9902.51.11

Fabrics, of
worsted wool,
with average
fiber diameters
greater than 18.5
micron, all the
foregoing
certified by the
importer as
suitable for use
in making suits,
suit-type
jackets, or
trousers
(provided for in
subheading
5111.11.70,
5111.19.60,
5112.11.20, or
5112.19.90)......

19.3%

No change

No change

On or before 12/
31/2003

No change

On or before 12/
31/2003

(2) <> Staged rate reductions.--Any
staged rate reduction of a rate of duty set forth in subheading
6203.31.00 of the Harmonized Tariff Schedule of the United
States that is proclaimed by the President shall also apply to
the corresponding rate of duty set forth in heading 9902.51.11
of such Schedule, as added by paragraph (1).
(b) Certain Worsted Wool Fabrics With Average Fiber Diameters of
18.5 Micron or Less.-(1) In general.--Subchapter II of chapter 99 of the
Harmonized Tariff Schedule of the United States is amended by
inserting in numerical sequence the following new heading:
``

9902.51.12

Fabrics, of
worsted wool,
with average
fiber diameters
of 18.5 micron or
less, all the
foregoing
certified by the
importer as
suitable for use
in making suits,
suit-type
jackets, or
trousers
(provided for in
subheading
5111.11.70,
5111.19.60,
5112.11.20, or
5112.19.90)......

6%

No change

(2) Equalization with canadian duty rates.--The President is
authorized to proclaim a reduction in the rate of duty
applicable to imports of worsted wool fabrics classified under
subheading 9902.51.12 of the Harmonized Tariff Schedule of the
United States, as added by paragraph (1), that is necessary to
equalize such rate of duty with the most favored nation
[[Page 114 STAT. 300]]
rate of duty applicable to imports of worsted wool fabrics of

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the kind described in such subheading imported into Canada.
(c) Definitions.--The U.S. Notes to subchapter II of chapter 99 of
the Harmonized Tariff Schedule of the United States are amended by
adding at the end the following:
``13. For purposes of headings 9902.51.11 and 9902.51.12, the term
`suit' has the meaning given such term under note 3(a) of chapter 62 for
purposes of headings 6203 and 6204.
``14. For purposes of headings 9902.51.11 and 9902.51.12, the term
`making' means cut and sewn in the United States.''.
(d) Limitation on Quantity of Imports.--The U.S. Notes to subchapter
II of chapter 99 of the Harmonized Tariff Schedule of the United States,
as amended by subsection (c), are further amended by adding at the end
the following:
``15. The aggregate quantity of worsted wool fabrics entered under
heading 9902.51.11 from January 1 to December 31 of each year,
inclusive, shall be limited to 2,500,000 square meter equivalents, or
such other quantity proclaimed by the President pursuant to section
504(b)(3) of the Trade and Development Act of 2000.
``16. The aggregate quantity of worsted wool fabrics entered under
subheading 9902.51.12 from January 1 to December 31 of each year,
inclusive, shall be limited to 1,500,000 square meter equivalents, or
such other quantity proclaimed by the President pursuant to section
504(b)(3) of the Trade and Development Act of 2000.''.
(e) <> Allocation of Tariff-Rate Quotas.--In
implementing the limitation on the quantity of imports of worsted wool
fabrics under headings 9902.51.11 and 9902.51.12 of the Harmonized
Tariff Schedule of the United States, as required by U.S. Notes 15 and
16 of subchapter II of chapter 99 of such Schedule, respectively, for
the entry, or withdrawal from warehouse for consumption, the President,
consistent with United States international obligations, shall take such
action as determined appropriate by the President to ensure that such
fabrics are fairly allocated to persons (including firms, corporations,
or other legal entities) who cut and sew men's and boys' worsted wool
suits and suit-like jackets and trousers in the United States and who
apply for an allocation based on the amount of such suits cut and sewn
during the prior calendar year.
(f ) <> Effective Date.--The amendments made
by this section apply with respect to goods entered, or withdrawn from
warehouse for consumption, on or after January 1, 2001.
SEC. 502. TEMPORARY DUTY SUSPENSIONS.
(a) Wool Yarn With Average Fiber Diameters of 18.5 Micron or Less.-Subchapter II of chapter 99 of the Harmonized Tariff Schedule of the
United States is amended by inserting in numerical sequence the
following new heading:
``

9902.51.13

Yarn, of combed
wool, not put up
for retail sale,
containing 85
percent or more
by weight of
wool, formed with
wool fibers
having diameters
of 18.5 micron or
less (provided
for in subheading
5107.10.00)......

Free

No change

No change

On or before 12/
31/2003

No change

On or before 12/
31/2003

[[Page 114 STAT. 301]]
(b) Wool Fiber and Wool Top With Average Diameters of 18.5 Micron or
Less.--Subchapter II of chapter 99 of the Harmonized Tariff Schedule of
the United States is amended by inserting in numerical sequence the
following new heading:
``

9902.51.14

Wool fiber, waste,
garnetted stock,
combed wool, or
wool top, having
average fiber
diameters of 18.5

Free

No change

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micron or less
(provided for in
subheading
5101.11, 5101.19,
5101.21, 5101.29,
5101.30, 5103.10,
5103.20, 5104.00,
5105.21, or
5105.29).........
(c) <> Effective Date.--The amendments made by
this section apply with respect to goods entered, or withdrawn from
warehouse for consumption, on or after January 1, 2001.
SEC. <> 503. SEPARATE TARIFF LINE TREATMENT FOR WOOL
YARN AND MEN'S OR BOYS' SUITS AND SUIT-TYPE JACKETS AND
TROUSERS OF WORSTED WOOL FABRIC.
(a) Separate Tariff Line Treatment.--The President shall proclaim 8digit tariff categories, without changes in existing duty rates, in
chapters 51 and 62 of the Harmonized Tariff Schedule of the United
States in order to provide separate tariff treatment for-(1) wool yarn made of wool fiber with an average fiber
diameter of 18.5 micron or less, and wool fabrics made from
yarns with an average fiber diameter of 18.5 micron or less; and
(2) men's or boys' suits, suit-type jackets, and trousers of
worsted wool fabric, made of wool yarn having an average
diameter of 18.5 micron or less.
(b) Conforming Changes.--The President is authorized to make
conforming changes in headings 9902.51.11, 9902.51.12, 9902.51.13, and
9902.51.14 of the Harmonized Tariff Schedule of the United States to
take into account the new permanent tariff categories proclaimed under
subsection (a).
SEC. 504. MONITORING OF MARKET CONDITIONS AND AUTHORITY TO MODIFY TARIFF
REDUCTIONS.
(a) <> Monitoring of Market
Conditions.--Beginning on the date of the enactment of this Act, the
President shall monitor market conditions in the United States,
including domestic demand, domestic supply, and increases in domestic
production, of worsted wool fabrics and their components in the market
for-(1) men's or boys' worsted wool suits, suit-type jackets,
and trousers;
(2) worsted wool fabric and yarn used in the manufacture of
such suits, jackets, and trousers; and
(3) wool used in the production of such fabrics and yarn.
(b) Authority to Modify Limitation on Quantity of Worsted Wool
Fabrics Subject to Tariff Reduction.-(1) In general.--The President shall, on an annual basis,
consider requests made by United States manufacturers of apparel
products made of worsted wool fabrics described in subsection
(a) to modify the limitation on the quantity of imports of
worsted wool fabrics under headings 9902.51.11 and
[[Page 114 STAT. 302]]
9902.51.12 of the Harmonized Tariff Schedule of the United
States, as required by U.S. Notes 15 and 16 of subchapter II of
chapter 99 of such Schedule, respectively.
(2) Consideration of certain market conditions.--In
determining whether to modify the limitation on the quantity of
imports of worsted wool fabrics described in paragraph (1), the
President shall consider the following United States market
conditions:
(A) Increases or decreases in sales of the
domestically-produced worsted wool fabrics described in
subsection (a).
(B) Increases or decreases in domestic production of
such fabrics.
(C) Increases or decreases in domestic production
and consumption of the apparel items described in
subsection (a).
(D) The ability of domestic producers of worsted

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wool fabrics described in subsection (a) to meet the
needs of domestic manufacturers of the apparel items
described in subsection (a) in terms of quantity and
ability to meet market demands for the apparel items.
(E) Evidence that domestic manufacturers of worsted
wool fabrics have lost sales due to the temporary duty
reductions on certain worsted wool fabrics under
headings 9902.51.11 and 9902.51.12 of the Harmonized
Tariff Schedule of the United States (as added by
subsections (a) and (b) of section 501).
(F) Evidence that domestic manufacturers of apparel
items described in subsection (a) have lost sales due to
the inability to purchase adequate supplies of worsted
wool fabrics on a cost competitive basis.
(G) Price per square meter of imports and domestic
sales of worsted wool fabrics.
(3) Modification of limitation on quantity of fabrics.-(A) In general.--If the President determines that
the limitation on the quantity of imports of worsted
wool fabrics under headings 9902.51.11 and 9902.51.12 of
the Harmonized Tariff Schedule of the United States
should be modified, the President shall proclaim such
changes to U.S. Note 15 or 16 to subchapter II of
chapter 99 of such Schedule (as added by section
501(d)), as the President determines to be appropriate.
(B) Additional requirement.--In any calendar year,
any modification of the limitation on the quantity of
imports of worsted wool fabrics under headings
9902.51.11 and 9902.51.12 of the Harmonized Tariff
Schedule of the United States shall not exceed-(i) 1,000,000 square meter equivalents for
worsted wool fabrics under heading 9902.51.11; and
(ii) 1,000,000 square meter equivalents for
worsted wool fabrics under heading 9902.51.12.
(c) <> Implementation.--The President shall
issue regulations necessary to implement the provisions of this section.
[[Page 114 STAT. 303]]
SEC. 505. REFUND OF DUTIES PAID ON IMPORTS OF CERTAIN WOOL ARTICLES.
(a) Worsted Wool Fabrics.--In each of the calendar years 2000, 2001,
and 2002, a manufacturer of men's or boys' suits, suit-type jackets, or
trousers (not a broker or other individual acting on behalf of the
manufacturer to process the import) of imported worsted wool fabrics of
the kind described in heading 9902.51.11 or 9902.51.12 of the Harmonized
Tariff Schedule of the United States shall be eligible for a refund of
duties paid on entries of such fabrics in each such calendar year in an
amount equal to one-third of the amount of duties paid by the importer
on such worsted wool fabrics (without regard to micron level) imported
in calendar year 1999.
(b) Wool Yarn.--In each of the calendar years 2000, 2001, and 2002,
a manufacturer of worsted wool fabrics who imports wool yarn of the kind
described in heading 9902.51.13 of the Harmonized Tariff Schedule of the
United States shall be eligible for a refund of duties paid on entries
of such wool yarn in each such calendar year in an amount equal to onethird of the amount of duties paid by the manufacturer on such wool yarn
(without regard to micron level) imported in calendar year 1999.
(c) Wool Fiber and Wool Top.--In each of the calendar years 2000,
2001, and 2002, a manufacturer of wool yarn or wool fabric who imports
wool fiber or wool top of the kind described in heading 9902.51.14 of
the Harmonized Tariff Schedule of the United States shall be eligible
for a refund of duties paid on entries of such wool fiber in each such
calendar year in an amount equal to one-third of the amount of duties
paid by the manufacturer on such wool fiber (without regard to micron
level) imported in calendar year 1999.
(d) Proper Identification and Appropriate Claim.--Any person
applying for a rebate under this section shall properly identify and
make appropriate claim to the United States Customs Service for each
entry involved.
SEC. <> 506. WOOL RESEARCH, DEVELOPMENT, AND
PROMOTION TRUST FUND.
(a) Establishment.--There is hereby established within the Treasury
of the United States a trust fund to be known as the Wool Research,
Development, and Promotion Trust Fund (hereafter in this section

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referred to as the ``Trust Fund''), consisting of such amounts as may be
transferred to the Trust Fund under subsection (b)(1) and any amounts as
may be credited to the Trust Fund under subsection (c)(2).
(b) Transfer of Amounts.-(1) In general.--The Secretary of the Treasury shall
transfer to the Trust Fund out of the general fund of the
Treasury of the United States amounts determined by the
Secretary of the Treasury to be equivalent to the amounts
received into such general fund that are attributable to the
duty received on articles under chapters 51 and 52 of the
Harmonized Tariff Schedule of the United States, subject to the
limitation in paragraph (2).
(2) Limitation.--The Secretary shall not transfer more than
$2,250,000 to the Trust Fund in any fiscal year.
[[Page 114 STAT. 304]]
(3) Transfers based on estimates.--The amounts required to
be transferred under paragraph (1) shall be transferred at least
quarterly from the general fund of the Treasury of the United
States to the Trust Fund on the basis of estimates made by the
Secretary of the Treasury of the amounts referred to in
paragraph (1) that are received into the Treasury. Proper
adjustments shall be made in the amounts subsequently
transferred to the extent prior estimates were in excess of, or
less than, the amounts required to be transferred.
(c) Investment of Trust Fund.-(1) In general.--It shall be the duty of the Secretary of
the Treasury to invest such portion of the Trust Fund as is not,
in the Secretary's judgment, required to meet current
withdrawals. Such investments may be made only in interestbearing obligations of the United States or in obligations
guaranteed as to both principal and interest by the United
States. For such purpose, such obligations may be acquired on
original issue at the issue price or by purchase of outstanding
obligations at the market price. Any obligation acquired by the
Trust Fund may be sold by the Secretary of the Treasury at the
market price.
(2) Interest and proceeds from sale or redemption of
obligations.--The interest on, and the proceeds from the sale or
redemption of, any obligations held in the Trust Fund shall be
credited to and form a part of the Trust Fund.
(d) Availability of Amounts from Trust Fund.--From amounts available
in the Trust Fund (including any amounts not obligated in previous
fiscal years), the Secretary of Agriculture is authorized to provide
grants to a nationally-recognized council established for the
development of the United States wool market for the following purposes:
(1) Assist United States wool producers to improve the
quality of wool produced in the United States, including to
improve wool production methods.
(2) Disseminate information on improvements described in
paragraph (1) to United States wool producers generally.
(3) Assist United States wool producers in the development
and promotion of the wool market.
(e) Reports to Congress.--The Secretary of the Treasury, in
consultation with the Secretary of Agriculture, shall prepare and submit
to Congress an annual report on the financial condition and the results
of the operations of the Trust Fund, including a description of the use
of amounts of grants provided under subsection (d), during the preceding
fiscal year and on its expected condition and operations during the next
fiscal year.
(f ) <> Sunset Provision.--Effective January
1, 2004, the Trust Fund shall be abolished and all amounts in the Trust
Fund on such date shall be transferred to the general fund of the
Treasury of the United States.
[[Page 114 STAT. 305]]
TITLE VI--REVENUE PROVISIONS
SEC. 601. APPLICATION OF DENIAL OF FOREIGN TAX CREDIT REGARDING TRADE
AND INVESTMENT WITH RESPECT TO CERTAIN FOREIGN COUNTRIES.
(a) In General.--Section 901( j) of the Internal Revenue Code of
1986 <> (relating to denial of foreign tax credit,

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etc., regarding trade and investment with respect to certain foreign
countries) is amended by adding at the end the following new paragraph:
``(5) Waiver of denial.-``(A) In general.--Paragraph (1) shall not apply
with respect to taxes paid or accrued to a country if
the President-``(i) determines that a waiver of the
application of such paragraph is in the national
interest of the United States and will expand
trade and investment opportunities for United
States companies in such country; and
``(ii) reports such waiver under subparagraph
(B).
``(B) <> Report.--Not less than 30
days before the date on which a waiver is granted under
this paragraph, the President shall report to Congress-``(i) the intention to grant such waiver; and
``(ii) the reason for the determination under
subparagraph (A)(i).''.
(b) <> Effective Date.--The
amendment made by this section shall apply on or after February 1, 2001.
SEC. 602. ACCELERATION OF COVER OVER PAYMENTS TO PUERTO RICO AND VIRGIN
ISLANDS.
(a) Initial Payment.--Section 512(b) of the Ticket to Work and Work
Incentives Improvement Act of 1999 <> is
amended-(1) by striking ``October 1, 2000,'' in the matter preceding
paragraph (1) and inserting ``the first day of the month within
which the date of the enactment of the Trade and Development Act
of 2000 occurs,''; and
(2) by striking paragraph (2) and inserting the following
new paragraph:
``(2) Second transfer of incremental increase in cover over
attributable to periods before resumption of regular payments.-The Secretary of the Treasury shall transfer on the first
payment date after the date of the enactment of the Trade and
Development Act of 2000 an amount equal to the excess of-``(A) the amount of such increase otherwise required
to be covered over after June 30, 1999, and before the
first day of the month within which such date of
enactment occurs, over
``(B) the amount of the transfer described in
paragraph (1).''.
(b) Clarification of Disposition of Taxes to Virgin Islands.--So
much of paragraph (3) of section 7652(b) of the Internal Revenue Code of
1986 <> (relating to Virgin Islands) as precedes
subparagraph (B) thereof is amended to read as follows:
``(3) Disposition of internal revenue collections.--The
Secretary shall determine the amount of all taxes imposed
[[Page 114 STAT. 306]]
by, and collected under the internal revenue laws of the United
States on articles produced in the Virgin Islands and
transported to the United States. The amount so determined less
1 percent and less the estimated amount of refunds or credits
shall be subject to disposition as follows:
``(A) The payment of an estimated amount shall be
made to the government of the Virgin Islands before the
commencement of each fiscal year as set forth in section
4(c)(2) of the Act entitled `An Act to authorize
appropriations for certain insular areas of the United
States, and for other purposes', approved August 18,
1978 (48 U.S.C. 1645), as in effect on the date of the
enactment of the Trade and Development Act of 2000. The
payment so made shall constitute a separate fund in the
treasury of the Virgin Islands and may be expended as
the legislature may determine.''.
(c) Resolution of Statutory Conflict.--Section 7652 of the Internal
Revenue Code of 1986 <> (relating to shipments to
the United States) is amended by adding at the end the following new
subsection:

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``(h) Manner of Cover Over of Tax Must Be Derived from This Title.-No amount shall be covered into the treasury of Puerto Rico or the
Virgin Islands with respect to taxes for which cover over is provided
under this section unless made in the manner specified in this section
without regard to-``(1) any provision of law which is not contained in this
title or in a revenue Act; and
``(2) whether such provision of law is a subsequently
enacted provision or directly or indirectly seeks to waive the
application of this subsection.''.
(d) <> Effective Date.--The
amendments made by this section shall apply with respect to transfers or
payments made after the date of the enactment of this Act.
Approved May 18, 2000.
LEGISLATIVE HISTORY--H.R. 434 (S. 1387):
--------------------------------------------------------------------------HOUSE REPORTS: Nos. 106-19, Pt. 1 (Comm. on International Relations)
and, Pt. 2 (Comm. on Ways and Means), and 106-606 (Comm. of Conference).
SENATE REPORTS: No. 106-112 accompanying S. 1387 (Comm. on Finance).
CONGRESSIONAL RECORD:
Vol. 145 (1999):
July 16, considered and passed
House.
Oct. 27-29, Nov. 1-3, considered and
passed Senate, amended.
Vol. 146 (2000):
May 4, House agreed to conference
report.
May 10, 11, Senate considered and
agreed to conference report.
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 36 (2000):
May 18, Presidential remarks.

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