Enforcement of United States Rights Under Trade Agreements and Response to Certain Foreign Trade Practices
Amends the Trade Act of 1974 to require presidential action if the President or the U.S. Trade Representative (USTR) determines that U.S. rights under any trade agreement are being denied or a foreign country's act, policy, or practice: (1) is inconsistent with, or denies benefits to the United States under, any trade agreement; or (2) is unjustifiable and burdens or restricts U.S. commerce. Requires the President, unless the contracting parties to the General Agreement on Tariffs and Trade (GATT) make a specified finding or the President makes a specified finding, to: (1) suspend or remove certain benefits of the trade agreement, impose restrictions on the foreign country involved, or withdraw benefits under the Generalized System of Preferences; or (2) restrict imports of services; or (3) both (1) and (2); and (4) take all other appropriate and feasible actions to enforce such rights or end such act, policy, or practice. Requires such action to be devised to affect goods or services of the foreign country involved in an amount equivalent to the amount that such country restricts U.S. commerce. Requires the President to apply such action, without modification, against a foreign country that has been designated as an excessive surplus country. Requires the President to take all appropriate actions to eliminate, and/or to offset the effects of, export targeting if: (1) the USTR determines that a foreign country practices export targeting; and (2) the International Trade Commission (ITC) determines that imports of targeted merchandise are injuring a U.S. industry. Requires the President to report to the Congress on each action taken or the reasons no action was taken to: (1) enforce U.S. rights or eliminate unfair trade acts, policies, or practices; or (2) eliminate or offset the export targeting policy or practice. Requires the President to take all appropriate and feasible action to eliminate a foreign country's act, policy, or practice which is unreasonable or discriminatory and burdens or restricts U.S. commerce. Requires the President, before taking any such action to restrict imports, to consider the likely impact that such action will have on U.S. agricultural exports. Requires the President, within 30 days of receiving the USTR's recommendation to take action to enforce U.S. trade rights, to determine what action to take and to implement such action. Authorizes the President to delay such determination and implementation for up to 90 days if: (1) either the petitioner or the industry that would benefit from such action requests the delay; or (2) the President determines that substantial progress towards a solution is being made. Defines "export targeting" as any government plan consisting of a combination of actions that are bestowed on a specific enterprise or group of enterprises which improves the competitiveness of exports by such enterprise or group. Requires the USTR, not later than March 31 of the calendar year following a U.S. global deficit year, to determine if a foreign country was an excessive surplus country during that calendar year. Sets forth specified circumstances under which the USTR must terminate such determination. Defines "excessive surplus country" to mean a foreign country that, during a U.S. global deficit year, had: (1) a surplus of trade in goods and services with the United States in which the aggregate value accounts for not less than 20 percent of the U.S. global deficit for such year; and (2) a surplus of trade in goods and services worldwide in which the aggregate value exceeds an amount equal to two percent of the gross national product of that country for such year. Defines "United States global deficit year" as any calendar year after 1985 in which the United States had a deficit in trade in goods and services in which the aggregate value equals or exceeds two percent of the U.S. gross national product for that year. Expresses the sense of the Congress that substantial implementation by Japan of economic reforms contained in the "Maekawa Report" is a sufficient basis for an affirmative determination by the USTR for presidential relief under the Act. Requires the USTR to notify the ITC of investigations involving alleged export targeting. Terminates the investigation if the USTR determines no export targeting exists or the ITC determines that imports of the targeted merchandise caused no material injury to a U.S. industry or to the establishment of a U.S. industry. Sets forth the timetable for making such determinations. Defines "material injury" and sets the standard for determining whether a material injury has been incurred. Provides for remedies under the countervailing and antidumping provisions of the Tariff Act of 1930, if appropriate. Provides for the presentation of views by interested persons concerning actions to enforce U.S. trade rights. Requires the USTR to direct certain inquiries to the foreign countries involved in an investigation of unfair trade practices. Authorizes the USTR to request the foreign countries to provide documentation or permit verification of its information. Authorizes the USTR to disregard such information and instead use the best information available if the information provided by the foreign country is not timely, is incomplete, or is insufficiently verified. Requires the USTR to consult with the petitioner before delaying consultations with a foreign country in cases involving enforcement of U.S. trade rights. Requires the USTR to give at least 30 days' notice for the presentation of views by interested persons in such cases before making recommendations to the President on enforcement actions. Requires the USTR to consult with business and labor representatives of the affected industry and with other interested persons on the nature of the appropriate remedial action in cases involving export targeting. Requires the USTR to consult with interested persons within 90 days of identification of a foreign country's market access barrier that has a significant adverse impact on U.S. exports if such barrier is likely to be an abridgement of U.S. rights under a trade agreement, is by a country that is designated as an excessive surplus country and is considered by the USTR as being a practice that is unreasonable and restricts U.S. commerce, and is not otherwise the subject of an investigation. Requires the USTR, subject to certain consultation requirements, to: (1) determine whether U.S. rights under a trade agreement are being denied or an unfair trade act, policy, or practice exists; and (2) recommend to the President what action to take if the determination under (1) is affirmative, and, in cases involving export targeting, the ITC found that injury, the threat of injury, or industry retardation exists. Changes the timetable for the USTR to determine whether action is required and to make recommendations to the President to: (1) 30 days after conclusion of dispute settlements or nine months after initiation of the investigation whichever occurs first, if a trade agreement other than the Subsidies Agreement is involved; or (2) nine months (11 months in export targeting cases) in any other case. Retains the current timetable for cases involving export subsidies, domestic subsidies, and combinations of export and domestic subsidies. Authorizes the President to modify or terminate an action taken to enforce U.S. trade rights if: (1) the contracting parties to the GATT make specified findings; or (2) the President determines that the foreign act, policy, or practice has been eliminated or is being phased out or that the action is not effective or that its continuation is not in the national economic interest. Requires the USTR to review and assess biennially the results of actions taken to enforce U.S. rights. Provides for publication of, and notification of the Congress of, any modification or termination. Requires the USTR to submit the annual national trade estimates to the House Foreign Affairs Committee. Requires such estimates to include, beginning on October 30, 1986, an identification of those acts, policies, and practices included in the analysis that had significant adverse impact on U.S. exports, and likely are unjustifiable or inconsistent with, or otherwise deny benefits to the United States under, any trade agreement.