19 U.S.C. § 2902 — Trade agreement negotiating authority

Page 815 TITLE 19—CUSTOMS DUTIES § 2902 (C) By deleting, from the third sentence in Section 1(a), the phrase ‘‘representative of the’’. (D) By deleting ‘‘and’’ at the end of subparagraph (3) of Section 1(b), by substituting ‘‘; and’’ for the period at the end of subparagraph (4) of that Section, and by adding a new subparagraph (5) as follows: ‘‘(5) coordi- nate the views of the Executive Branch and discharge the responsibilities with respect to Section 721(a) and (e) of the Defense Production Act of 1950, as amended (50 U.S.C. App. 2061 et seq.) [now 50 U.S.C. 4501 et seq.] (‘‘Defense Production Act’’).’’ (E) By adding the following sentence at the end of Section 5: ‘‘Information or documentary material filed pursuant to Section 1(b)(5) or Section 7 of this Order shall be treated in accordance with paragraph (b) of Section 721 of the Defense Production Act.’’ (F) By inserting in Section 1(a) the following addi- tional Committee members: ‘‘(7) The Attorney Gen- eral.’’ and ‘‘(8) The Director of the Office of Manage- ment and Budget.’’ (G) The Interim Presidential Directive to the Sec- retary of the Treasury of October 26, 1988, is hereby re- voked, and any notices received or investigations pend- ing as of the date this Order takes effect shall be re- ferred to the Chairman of the Committee for action consistent with this Order. SEC. 3–301. Reporting Requirement on Semiconductors, Fiber Optics and Superconducting Materials. (1) The Secretary of Commerce, in consultation with the Director of the Office of Science and Technology Policy, the Secretary of Defense, and the Director of the Office of Management and Budget, shall prepare for the President to submit to the Congress with the Fiscal Year 1990 budget a report describing policies and budget proposals regarding: (A) Federal research in semiconductors and semicon- ductor manufacturing technology, including a discus- sion of the respective roles of the various Federal de- partments and agencies in such research; (B) Federal research and acquisition policies for fiber optics and optical-electronic technologies generally; (C) Superconducting materials, including descrip- tions of research priorities, the scientific and technical barriers to commercialization which such research is designed to overcome, steps taken to ensure coordina- tion among Federal agencies conducting research on superconducting materials, and steps taken to consult with private United States industry to ensure that no unnecessary duplication of research exists and that all important scientific and technical barriers to the com- mercialization of superconducting materials will be ad- dressed; and (D) Federal research to assist United States industry to develop and apply advanced manufacturing tech- nologies for the production of durable and nondurable goods. (2) The Department of Defense, the Department of Energy, the National Science Foundation, the National Aeronautics and Space Administration, the Depart- ment of State, the United States Trade Representative, and other Federal agencies deemed appropriate by the Secretary of Commerce shall provide the information described in section 5141 of the Omnibus Trade Act [Pub. L. 100–418, title V, Aug. 23, 1988, 102 Stat. 1444] concerning their Fiscal Year 1989 program and proposed Fiscal Year 1990 program to the Secretary of Commerce in sufficient time to permit preparation of the report. (3) The Office of Management and Budget shall pro- vide to the Secretary of Commerce, in sufficient time to permit preparation of the report, a summary of the Federal base program and Fiscal Year 1990 budget ini- tiatives in each of the technical areas of the report. (4) The Office of Science and Technology Policy (‘‘OSTP’’) shall provide the Secretary of Commerce with appropriate policy guidance in the technical areas of the report, including a summary of the criteria used to select research projects within an agency and among agencies, and the results of any studies conducted by OSTP, or by others if OSTP deems them to be relevant, which analyze the influence of the Federal research programs in the technical areas of the report. SEC. 3–401. [Revoked by Ex. Ord. No. 12774, § 3(a), Sept. 27, 1991, 56 F.R. 49835] PART IV—EDUCATION AND TRAINING FOR AMERICAN COMPETITIVENESS SEC. 4–101. Buy American Act of 1988. (1) The functions vested in the President by section 7002 of the Omnibus Trade Act, regarding section 4(d) of Title III of the Buy American Act of 1933, as amended (41 U.S.C. 10a–10d) [former 41 U.S.C. 10b–1], are dele- gated to the Secretary of Defense. (2) The functions vested in the President by section 7003 of the Omnibus Trade Act, regarding the annual re- port required by subsection (d) of section 305 of the Trade Agreements Act of 1979, as amended (19 U.S.C. 2515), are delegated to the United States Trade Rep- resentative. PART V—MISCELLANEOUS SEC. 5–101. Executive Oversight. Any actions or determinations taken or made by an officer or agency under the Omnibus Trade Act or this Order shall be subject to the Executive oversight and direction of the President, and such actions or deter- minations shall be undertaken after appropriate inter- agency consultation as established by the President. SEC. 5–102. Regulatory Review. Notwithstanding the provisions of section 1(a)(2) of Executive Order No. 12291 of February 17, 1981 [formerly 5 U.S.C. 601 note], the Di- rector of the Office of Management and Budget shall, with regard to regulations, rules, or agency statements of general applicability and future effect designed to implement, interpret, or prescribe law or policy or de- scribing the procedure or practice requirements of an agency relative to the administration of the Export Ad- ministration Act, determine whether such regulations, rules, or agency statements are exempted from review under that Order, pursuant to the provisions of section 8(b) thereof [former 50 U.S.C. 4607(b)]. SEC. 5–201. Offsets. The negotiating functions under section 825(c) of the Defense Authorization Act [10 U.S.C. 2532 note], as may be ordered by the President, are hereby jointly delegated to the Secretary of De- fense and the United States Trade Representative. These functions shall be coordinated with the Sec- retary of State and conducted in consultation with the Secretaries of Commerce, Labor and the Treasury. SEC. 5–202. Reporting Functions. The reporting func- tions of the President under section 825(d) of the De- fense Authorization Act [10 U.S.C. 2532 note] are dele- gated to the Director of the Office of Management and Budget. The Director may further delegate to the heads of Executive departments and agencies responsibility for preparing particular sections of such reports. The heads of Executive departments and agencies shall, to the extent permitted by law, provide the Director with such information as may be necessary for the effective performance of these functions. SEC. 5–301. International Trade Commission Report. The functions vested in the President by section 332(g) of the Tariff Act [19 U.S.C. 1332(g)], regarding reports by the United States International Trade Commission to the President, are delegated to the United States Trade Representative. SEC. 5–401. Strengthening International Institutions. To the extent possible, actions undertaken under this Order shall be conducted in a manner that strengthens international institutions that further United States objectives, such as opening foreign markets and pre- venting the export of strategic goods and technologies to proscribed destinations. SEC. 5–501. Effective Date. This Order shall take effect at 12:01 a.m. on Wednesday, December 28, 1988. § 2902. Trade agreement negotiating authority (a) Agreements regarding tariff barriers (1) Whenever the President determines that one or more existing duties or other import re- Page 816 TITLE 19—CUSTOMS DUTIES § 2902 strictions of any foreign country or the United States are unduly burdening and restricting the foreign trade of the United States and that the purposes, policies, and objectives of this title will be promoted thereby, the President— (A) before June 1, 1993, may enter into trade agreements with foreign countries; and (B) may, subject to paragraphs (2) through (5), proclaim— (i) such modification or continuance of any existing duty, (ii) such continuance of existing duty-free or excise treatment, or (iii) such additional duties; as he determines to be required or appropriate to carry out any such trade agreement. (2) No proclamation may be made under sub- section (a) that— (A) reduces any rate of duty (other than a rate of duty that does not exceed 5 percent ad valorem on August 23, 1988) to a rate which is less than 50 percent of the rate of such duty that applies on August 23, 1988; or (B) increases any rate of duty above the rate that applies on August 23, 1988. (3)(A) Except as provided in subparagraph (B), the aggregate reduction in the rate of duty on any article which is in effect on any day pursu- ant to a trade agreement entered into under paragraph (1) shall not exceed the aggregate re- duction which would have been in effect on such day if a reduction of 3 percent ad valorem or a reduction of one-tenth of the total reduction, whichever is greater, had taken effect on the ef- fective date of the first reduction proclaimed in paragraph (1) to carry out such agreement with respect to such article. (B) No staging under subparagraph (A) is re- quired with respect to a rate reduction that is proclaimed under paragraph (1) for an article of a kind that is not produced in the United States. The United States International Trade Commis- sion shall advise the President of the identity of articles that may be exempted from staging under this subparagraph. (4) If the President determines that such ac- tion will simplify the computation of reductions under paragraph (3), the President may round an annual reduction by the lesser of— (A) the difference between the reduction without regard to this paragraph and the next lower whole number; or (B) one-half of 1 percent ad valorem. (5) No reduction in a rate of duty under a trade agreement entered into under subsection (a) on any article may take effect more than 10 years after the effective date of the first reduction under paragraph (1) that is proclaimed to carry out the trade agreement with respect to such ar- ticle. (6) A rate of duty reduction or increase that may not be proclaimed by reason of paragraph (2) may take effect only if a provision author- izing such reduction or increase is included within an implementing bill provided for under section 2903 of this title and that bill is enacted into law. (b) Agreements regarding nontariff barriers (1) Whenever the President determines that any barrier to, or other distortion of, inter- national trade— (A) unduly burdens or restricts the foreign trade of the United States or adversely affects the United States economy; or (B) the imposition of any such barrier or dis- tortion is likely to result in such a burden, re- striction, or effect; and that the purposes, policies, and objectives of this title will be promoted thereby, the Presi- dent may, before June 1, 1993, enter into a trade agreement with foreign countries providing for— (i) the reduction or elimination of such bar- rier or other distortion; or (ii) the prohibition of, or limitations on the imposition of, such barrier or other distortion. (2) A trade agreement may be entered into under this subsection only if such agreement makes progress in meeting the applicable objec- tives described in section 2901 of this title. (c) Bilateral agreements regarding tariff and nontariff barriers (1) Before June 1, 1993, the President may enter into bilateral trade agreements with for- eign countries that provide for the elimination or reduction of any duty imposed by the United States. A trade agreement entered into under this paragraph may also provide for the reduc- tion or elimination of barriers to, or other dis- tortions of, the international trade of the for- eign country or the United States. (2) Notwithstanding any other provision of law, no trade benefit shall be extended to any country by reason of the extension of any trade benefit to another country under a trade agree- ment entered into under paragraph (1) with such other country. (3) A trade agreement may be entered into under paragraph (1) with any foreign country only if— (A) the agreement makes progress in meet- ing the applicable objectives described in sec- tion 2901 of this title; (B) such foreign country requests the nego- tiation of such an agreement; and (C) the President, at least 60 days before the date notice is provided under section 2903(a)(1)(A) of this title— (i) provides written notice of such negotia- tions to the Committee on Finance of the Senate and the Committee on Ways and Means of the House of Representatives, and (ii) consults with such committees regard- ing the negotiation of such agreement. (4) The 60-day period of time described in para- graph (3)(C) shall be computed in accordance with section 2903(e) of this title. (5) In any case in which there is an inconsist- ency between any provision of this Act and any bilateral free trade area agreement that entered into force and effect with respect to the United States before January 1, 1987, the provision shall not apply with respect to the foreign country that is party to that agreement. Page 817 TITLE 19—CUSTOMS DUTIES § 2903 (d) Consultation with Congress before agree- ments entered into (1) Before the President enters into any trade agreement under subsection (b) or (c), the Presi- dent shall consult with— (A) the Committee on Ways and Means of the House of Representatives and the Com- mittee on Finance of the Senate; and (B) each other committee of the House and the Senate, and each joint committee of the Congress, which has jurisdiction over legisla- tion involving subject matters which would be affected by the trade agreement. (2) The consultation under paragraph (1) shall include— (A) the nature of the agreement; (B) how and to what extent the agreement will achieve the applicable purposes, policies, and objectives of this title; and (C) all matters relating to the implementa- tion of the agreement under section 2903 of this title. (3) If it is proposed to implement two or more trade agreements in a single implementing bill under section 2903 of this title, the consultation under paragraph (1) shall include the desir- ability and feasibility of such proposed imple- mentation. (e) Special provisions regarding Uruguay Round trade negotiations (1) In general Notwithstanding the time limitations in subsections (a) and (b), if the Uruguay Round of multilateral trade negotiations under the auspices of the General Agreement on Tariffs and Trade has not resulted in trade agree- ments by May 31, 1993, the President may, dur- ing the period after May 31, 1993, and before April 16, 1994, enter into, under subsections (a) and (b) of this section, trade agreements re- sulting from such negotiations. (2) Application of tariff proclamation authority No proclamation under subsection (a) to carry out the provisions regarding tariff bar- riers of a trade agreement that is entered into pursuant to paragraph (1) may take effect be- fore the effective date of a bill that imple- ments the provisions regarding nontariff bar- riers of a trade agreement that is entered into under such paragraph. (3) Application of implementing and ‘‘fast track’’ procedures Section 2903 of this title applies to any trade agreement negotiated under subsection (b) pursuant to paragraph (1), except that— (A) in applying subsection (a)(1)(A) of sec- tion 2903 of this title to any such agreement, the phrase ‘‘at least 120 calendar days before the day on which he enters into the trade agreement (but not later than December 15, 1993),’’ shall be substituted for the phrase ‘‘at least 90 calendar days before the day on which he enters into the trade agreement,’’; and (B) no provision of subsection (b) of sec- tion 2903 of this title other than paragraph (1)(A) applies to any such agreement and in applying such paragraph, ‘‘April 16, 1994;’’ shall be substituted for ‘‘June 1, 1991;’’. (4) Advisory committee reports The report required under section 2155(e)(1) of this title regarding any trade agreement provided for under paragraph (1) shall be pro- vided to the President, the Congress, and the United States Trade Representative not later than 30 days after the date on which the Presi- dent notifies the Congress under section 2903(a)(1)(A) of this title of his intention to enter into the agreement (but before January 15, 1994). (Pub. L. 100–418, title I, § 1102, Aug. 23, 1988, 102 Stat. 1126; Pub. L. 101–382, title I, § 139(b), Aug. 20, 1990, 104 Stat. 653; Pub. L. 103–49, § 1, July 2, 1993, 107 Stat. 239.) Editorial Notes REFERENCES IN TEXT This title, referred to in subsecs. (a)(1), (b)(1), and (d)(2)(B), is title I (§ 1001 et seq.) of Pub. L. 100–418, see note below. For complete classification of this title to the Code, see Tables. This Act, referred to in subsec. (c)(5), is Pub. L. 100–418, Aug. 23, 1988, 102 Stat. 1107, known as the Omni- bus Trade and Competitiveness Act of 1988. For com- plete classification of this Act to the Code, see Tables. AMENDMENTS 1993—Subsec. (e). Pub. L. 103–49 added subsec. (e). 1990—Subsec. (c)(4). Pub. L. 101–382 substituted ‘‘para- graph (3)(C)’’ for ‘‘paragraph (3)(B)’’ and ‘‘2903(e)’’ for ‘‘2903(f)’’. § 2903. Implementation of trade agreements (a) In general (1) Any agreement entered into under section 2902(b) or (c) of this title shall enter into force with respect to the United States if (and only if)— (A) the President, at least 90 calendar days before the day on which he enters into the trade agreement, notifies the House of Rep- resentatives and the Senate of his intention to enter into the agreement, and promptly there- after publishes notice of such intention in the Federal Register; (B) after entering into the agreement, the President submits a document to the House of Representatives and to the Senate containing a copy of the final legal text of the agreement, together with— (i) a draft of an implementing bill, (ii) a statement of any administrative ac- tion proposed to implement the trade agree- ment, and (iii) the supporting information described in paragraph (2); and (C) the implementing bill is enacted into law. (2) The supporting information required under paragraph (1)(B)(iii) consists of— (A) an explanation as to how the imple- menting bill and proposed administrative ac- tion will change or affect existing law; and (B) a statement— (i) asserting that the agreement makes progress in achieving the applicable pur- poses, policies, and objectives of this title,