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106th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 2d Session                                                     106-606

======================================================================



 
                   TRADE AND DEVELOPMENT ACT OF 2000

                                _______
                                

                  May 4, 2000.--Ordered to be printed

                                _______
                                

 Mr. Archer, from the committee of conference, submitted the following

                           CONFERENCE REPORT

                        [To accompany H.R. 434]

      The committee of conference on the disagreeing votes of 
the two Houses on the amendments of the Senate to the bill 
(H.R. 434), to authorize a new trade and investment policy for 
sub-Sahara Africa, having met, after full and free conference, 
have agreed to recommend and do recommend to their respective 
Houses as follows:
      That the House recede from its disagreement to the 
amendment of the Senate to the text of the bill and agree to 
the same with an amendment as follows:
      In lieu of the matter proposed to be inserted by the 
Senate amendment, insert the following:

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.--

   TITLE I--EXTENSION OF CERTAIN TRADE BENEFITS TO SUB-SAHARAN AFRICA

             Subtitle A--Trade Policy for Sub-Saharan Africa

Sec. 101. Short title; table of contents.
Sec. 102. Findings.
Sec. 103. Statement of policy.
Sec. 104. Eligibility requirements.
Sec. 105. 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. 111. Eligibility for certain benefits.
Sec. 112. Treatment of certain textiles and apparel.
Sec. 113. Protections against transshipment.
Sec. 114. Termination.
Sec. 115. Clerical amendments.
Sec. 116. Free trade agreements with sub-Saharan African countries.
Sec. 117. Assistant United States Trade Representative for African 
          Affairs.

             Subtitle C--Economic Development Related Issues

Sec. 121. Sense of 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 sub-
          Saharan 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 sub-
          Saharan Africa.
Sec. 130. Study on improving African agricultural practices.
Sec. 131. Sense of the Congress regarding efforts to combat 
          desertification in Africa and other countries.

              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. 214. Duty-free treatment for certain beverages made with Caribbean 
          rum.
Sec. 215. 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. 401. Report on employment and trade adjustment assistance.
Sec. 402. Trade adjustment assistance.
Sec. 403. Reliquidation of certain nuclear fuel assemblies.
Sec. 404. Reports to the Finance and Ways and Means committees.
Sec. 405. Clarification of section 334 of the Uruguay Round Agreements 
          Act.
Sec. 406. Chief agricultural negotiator.
Sec. 407. Revision of retaliation list or other remedial action.
Sec. 408. Report on trade adjustment assistance for agricultural 
          commodity producers.
Sec. 409. Agricultural trade negotiating objectives and consultations 
          with Congress.
Sec. 410. Entry procedures for foreign trade zone operations.
Sec. 411. Goods made with forced or indentured child labor.
Sec. 412. 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 Africa;
            (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 
        sub-Saharan 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 sub-Saharan 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
            (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 
sub-Saharan 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 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).

SEC. 105. UNITED STATES-SUB-SAHARAN AFRICA TRADE AND ECONOMIC 
                    COOPERATION FORUM.

    (a) Declaration of Policy.--The President shall convene 
annual high-level 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 sub-Saharan 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-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.
    (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'', ``sub-Saharan 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).
            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).
            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 
                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.--
            ``(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 1 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 1 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, 
        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, 
                oven-baking, bleaching, garment-dyeing, screen 
                printing, or other similar processes.
            (2) Apparel articles cut and assembled in 
        beneficiary sub-saharan african countries.--Apparel 
        articles cut in 1 or more beneficiary sub-Saharan 
        African countries from fabric wholly formed in the 
        United States from yarns wholly formed in the United 
        States, if such articles are assembled in 1 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 1 
        or more beneficiary sub-Saharan African countries from 
        fabric wholly formed in 1 or more beneficiary sub-
        Saharan African countries from yarn originating either 
        in the United States or 1 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 
                        7 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 in 1 or more 
                        lesser developed beneficiary sub-
                        Saharan 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 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.
                                    (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.
            (4) Sweaters knit-to-shape from cashmere or merino 
        wool.--
                    (A) Cashmere.--Sweaters, in chief weight of 
                cashmere, knit-to-shape in 1 or more 
                beneficiary sub-Saharan 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 1 or 
                more beneficiary sub-Saharan 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 1 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 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.
                    (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 sub-Saharan 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 sub-Saharan 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 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 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 1 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.--
            (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
                                    (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, 
                                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;
            (2) send production verification teams to at least 
        4 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 SUB-SAHARAN 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.''.

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 1 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 
                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 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 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.
            (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 Congress.--It is the sense of 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 sub-Saharan 
Africa. It is the sense of the Congress 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.--1 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.--
            (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 the congress.--Within 6 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 the 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 Congress.--It is the sense of 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 
sub-Saharan 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 U.S. 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 8 countries. By 
        early 1997, that presence had been reduced by half to 7 
        professionals in only 4 countries.
            (3) Since 1997, the Department of Commerce has 
        slowly begun to increase the presence of the Commercial 
        Service in sub-Saharan Africa, adding 5 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 U.S. 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 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 sub-Saharan 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 sub-Saharan 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 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 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 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.
                    (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.
            (3) 83 percent of the estimated 11,700,000 deaths 
        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-for-profit 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;
            (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 United States should expeditiously workwith 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 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.

    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--
                    ``(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 
                        a cbtpa beneficiary country.--Apparel 
                        articles assembled in a CBTPA 
                        beneficiary country from fabrics wholly 
                        formed and cut in the United States, 
                        from yarns wholly formed 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 
                                stone-washing, 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 a CBTPA beneficiary 
                        country from fabric wholly formed in 
                        the United States from yarns wholly 
                        formed in the United States, if such 
                        articles are assembled in such country 
                        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, and knit 
                        apparel articles (other than t-shirts 
                        described in subclause (III)) cut and 
                        wholly assembled in 1 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, 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 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, 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 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 
                        occuring 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 1 or more of the CBTPA 
                        beneficiary countries, or both.
                            ``(II) During the 1-year period 
                        beginning on October 1, 2001, and 
                        during eachof the 6 succeeding 1-year 
periods, apparel articles described in subclause (I) of a producer or 
an entity controlling production shall 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 1-
year 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 1-year 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 1-year period.
                            ``(v) Apparel articles assembled 
                        from fibers, fabric, 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 1 or more CBTPA 
                        beneficiary countries, from fibers, 
                        fabric, or yarn that is not formed in 
                        the United States or in 1 or more CBTPA 
                        beneficiary countries, to the extent 
                        that such fibers, fabric, or yarn would 
                        be eligible for preferential treatment, 
                        without regard to the source of the 
                        fibers, fabric, or yarn, under Annex 
                        401 of the NAFTA.
                            ``(II) At the request of any 
                        interested party, the President is 
                        authorized to proclaim additional 
                        fibers, fabric, and yarn as eligible 
                        for preferential treatment under 
                        subclause (I) if--
                                    ``(aa) the President 
                                determines that such fibers, 
                                fabric, 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) within 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);
                                    ``(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 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 anyfindings 
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 1 or more CBTPA beneficiary 
                                countries shall not be 
                                ineligible for such treatment 
                                if the total weight of all such 
                                fibers or yarns is 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 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 entered 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.
                            ``(vii) 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 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 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 articleimported 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 8-digit 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.
                            ``(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 
                                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--
                            ``(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, 
                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 Trade-
                        Related 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,
                                    ``(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 
                                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 1 or 
                                more CBTPA beneficiary 
                                countries (or any combination 
                                thereof).
                    ``(D) Transition period.--The term 
                `transition period' means, with respect to a 
                CBTPAbeneficiary country, the period that 
begins on October 1, 2000, and ends on the earlier of--
                            ``(i) September 30, 2008, or
                            ``(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 determines that, as a 
result of changed circumstances, the performance of such 
country is not satisfactory under the criteria set forth in 
section 213(b)(5)(B).''; and
            (2) by adding after paragraph (2) the following new 
        paragraph:
    ``(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).
            ``(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).''.
            (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 drug-related 
        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 
                exceptas 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:
                    ``(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).''.

SEC. 214. DUTY-FREE TREATMENT FOR CERTAIN BEVERAGES MADE WITH CARIBBEAN 
                    RUM.

    Section 213(a) of the Caribbean Basin Economic Recovery Act 
(19 U.S.C. 2703(a)) is amended--
            (1) in paragraph (5), by striking ``chapter'' and 
        inserting ``title''; and
            (2) by 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. 215. 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:
            (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 free-market 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 
rightsunder 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 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 
rightsunder 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--
                    (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 
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--
            (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 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 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 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....................................

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. 2681-224), 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''.
    (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 105-277; 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 2 or more of the following finishing 
        operations: bleaching, shrinking, fulling, napping, 
        decating, permanent stiffening, weighting, permanent 
        embossing, or moireing.
            ``(C) Notwithstanding paragraph (1)(D), goods 
        classified 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 2 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 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 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 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 
enactment of this Act, the Secretary of Labor, in consultation 
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 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 
andUnited 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;
            (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 
        price-depressing 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.
    (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
                    (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 Congress.--It is the sense of 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 7-day 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--
                            ``(i) to file the entries described 
                        in paragraph (1); and
                            ``(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 
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 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)(A), (B), and (C))''.
    (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.
        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.

               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      19.3%        No change      No change      On or before
                           worsted wool,                                               12/31/2003        ''.
                           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 subheadings
                           5111.11.70,
                           5111.19.60,
                           5112.11.20, or
                           5112.19.90)...

            (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      6%           No change      No change      On or before
                           worsted wool,                                               12/31/2003        ''.
                           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 subheadings
                           5111.11.70,
                           5111.19.60,
                           5112.11.20, or
                           5112.19.90)...

            (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 rate of 
        duty applicable to imports of worsted wool fabrics of 
        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  Free         No change      No change      On or before
                           wool, not put                                               12/31/2003        ''.
                           up for retail
                           sale,
                           containing 85
                           percent or
                           more by weight
                           of wool, of
                           64's and linen
                           worsted wool
                           count wool
                           yarn formed
                           with wool
                           fibers having
                           diameters of
                           18.5 micron or
                           less (provided
                           for in
                           subheading
                           5107.10.00)...

    (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,      Free         No change      No change      On or before
                           waste,                                                      12/31/2003        ''.
                           garnetted
                           stock, combed
                           wool, or wool
                           top, having
                           average fiber
                           diameters of
                           18.5 micron or
                           less (provided
                           for in
                           subheadings
                           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 8-digit 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 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 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--
                    (A) 1,000,000 square meter equivalents for 
                worsted wool fabrics under heading 9902.51.11; 
                and
                    (B) 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.

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 one-third 
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 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 
(hereinafter in this section 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.
            (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 interest-bearing 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.

                      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, 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 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 
        enactment of the Tradeand 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 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 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:
    ``(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 enactment of this Act.
      And the Senate agree to the same.
      That the House recede from its disagreement to the 
amendment of the Senate to the title of the bill and agree to 
the same.
                From the Committee on International Relations, 
                for consideration of the House bill and the 
                Senate amendment, and modifications committed 
                to conference:
                                   Benjamin A. Gilman,
                                   Edward R. Royce,
                                   Sam Gejdenson,
                From the Committee on Ways and Means, for 
                consideration of the House bill and the Senate 
                amendment, and modifications committed to 
                conference:
                                   Bill Archer,
                                   Phil Crane,
                                   Charles B. Rangel,
                As additional conferees, for consideration of 
                the House bill and the Senate amendment, and 
                modifications committed to conference:
                                   Amo Houghton,
                                   Joe Hoeffel,
                                 Managers on the Part of the House.

                                   W.V. Roth, Jr.,
                                   Chuck Grassley,
                                   Trent Lott,
                                   Daniel P. Moynihan,
                                   Max Baucus,
                                   Joe Biden,
                                Managers on the Part of the Senate.
       JOINT EXPLANATORY STATEMENT OF THE COMMITTEE OF CONFERENCE

      The managers on the part of the House and the Senate at 
the conference on the disagreeing votes of the two Houses on 
the amendments of the Senate to the bill (H.R. 434), to 
authorize a new trade and investment policy for sub-Sahara 
Africa, submit the following joint statement to the House and 
the Senate in explanation of the effect of the action agreed 
upon by the managers and recommended in the accompanying 
conference report:
      The Senate amendment to the text of the bill struck all 
of the House bill after the enacting clause and inserted a 
substitute text.
      The House recedes from its disagreement to the amendment 
of the Senate with an amendment that is a substitute for the 
House bill and the Senate amendment. The differences between 
the House bill, the Senate amendment, and the substitute agreed 
to in conference are noted below, except for clerical 
corrections, conforming changes made necessary by agreements 
reached by the conferees, and minor drafting and clerical 
changes.

   TITLE I--EXTENSION OF CERTAIN TRADE BENEFITS TO SUB-SAHARAN AFRICA

            Subtitle A--Trade Policy for Sub-Saharan Africa

                         Sec. 101. Short Title

Present law
      No provision.
House bill
      Section 1 of the House bill states that this Act may be 
cited as the ``African Growth and Opportunity Act.''
Senate amendment
      Section 101 of the Senate amendment states that this 
title may be cited as the ``African Growth and Opportunity 
Act.''
Conference agreement
      The conference agreement provides that title I of the 
bill may be referred to as the African Growth and Opportunity 
Act.

                           sec. 102. findings

Present law
      No provision.
House bill
      In section 2 of the House bill, Congress finds that it is 
in the mutual economic interest of the United States and 
countries of sub-Saharan Africa to promote stable and 
sustainable economic growth and development in sub-Saharan 
Africa and that sustained economic growth in sub-Saharan Africa 
depends in large measure upon the development of a receptive 
environment for trade and investment. To that end, the United 
States seeks to facilitate market-led economic growth in, and 
thereby the social and economic development of, countries in 
sub-Saharan Africa. In particular, the United States seeks to 
assist sub-Saharan African countries, and the private sector in 
those countries, to achieve economic self-reliance by:
            (1) strengthening and expanding the private sector 
        in sub-Saharan Africa, especially women owned 
        businesses;
            (2) encouraging increased trade and investment 
        between the U.S. and sub-Saharan Africa;
            (3) reducing tariff and nontariff barriers and 
        other trade obstacles;
            (4) expanding U.S. assistance to sub-Saharan 
        Africa's regional integration efforts;
            (5) negotiating free trade areas;
            (6) establishing a United States-Sub-Saharan Africa 
        Trade and Investment Partnership;
            (7) focusing on countries committed to accountable 
        government, economic reform, and the eradication of 
        poverty;
            (8) establishing a United States-Sub Saharan Africa 
        Economic Cooperation Forum; and
            (9) continuing to support development assistance 
        for countries in sub-Saharan Africa attempting to build 
        civil societies.
Senate amendment
      In section 102 of the Senate amendment, 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 Africa;
            (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 a rise in both 
        economic development and political freedom as countries 
        in sub-Saharan Africa have taken steps toward 
        liberalizing their economies and encouraged broader 
        participation in the political process;
            (5) the countries of sub-Saharan Africa have made 
        progress toward regional economic integration that can 
        have positive benefits for the region;
            (6) despite those gains, the per capita income in 
        sub-Saharan Africa averages less than $500 annually;
            (7) U.S. foreign direct investment in the region 
        has fallen in recent years and the sub-Saharan African 
        region receives only minor inflows of direct investment 
        from around the world;
            (8) trade between the United States and sub-Saharan 
        Africa remains, apart from the import of oil, an 
        insignificant part of total U.S. trade;
            (9) trade and investment, as the American 
        experience has shown, can represent powerful tools both 
        for economic development and for building a stable 
        politicalenvironment in which political freedom can 
flourish;
            (10) 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;
            (11) 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
            (12) 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.
Conference agreement
      The House recedes to the Senate except to delete certain 
findings related to the decline in foreign direct investment in 
sub-Saharan Africa and the low levels of U.S. trade with sub-
Saharan Africa. In addition, the conference agreement clarifies 
the findings related to the political and economic development.

                     Sec. 103. Statement of Policy

Present law
      No provision.
House bill
      In section 3 of the House bill, Congress supports 
economic self-reliance for sub-Saharan African countries, 
particularly those committed to economic and political reform; 
market incentives and private sector growth; the eradication of 
poverty; and the importance of women to economic growth and 
development.
Senate amendment
      Section 103 of the Senate amendment states the support of 
the Congress for:
            (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 U.S. trade;
            (3) expanding U.S. 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 countries in sub-Saharan 
        Africa;
            (5) focusing on countries committed to accountable 
        government, economic reform, and the eradication of 
        poverty;
            (6) strengthening and expanding the private sector 
        in sub-Saharan Africa;
            (7) supporting the development of civil societies 
        and political freedom in sub-Saharan Africa; and
            (8) establishing a United States-Sub-Saharan 
        African Economic Cooperation Forum.
      In section 717 of the Senate amendment, Congress makes 
the following:
            (1) Corruption and bribery of public officials is a 
        major problem in many African countries and represents 
        a serious threat to the development of a functioning 
        domestic private sector, to United States business and 
        trade interests, and to prospects for democracy and 
        good governance in African countries.
            (2) Of the 17 countries in sub-Saharan Africa rated 
        by the international watchdog group, Transparency 
        International, as part of the 1998 Corruption 
        Perception Index, 13 ranked in the bottom half.
            (3) The Organization for Economic Cooperation and 
        Development (OECD) Convention on Combating Bribery of 
        Foreign Public Officials in International Business 
        Transactions, which has been signed by all 29 members 
        of the OECD plus Argentina, Brazil, Bulgaria, Chile, 
        and the Slovak Republic and which entered into force on 
        February 15, 1999, represents a significant step in the 
        elimination of bribery and corruption in international 
        commerce.
            (4) As a party to the OECD Convention on Combating 
        Bribery of Foreign Public Officials in International 
        Business Transactions, the United States should 
        encourage the highest standards possible with respect 
        to bribery and corruption.
      Section 717 of the Senate amendment expresses the sense 
of Congress that the United States should encourage at every 
opportunity the accession of sub-Saharan African countries, as 
defined in section 104, to the OECD Convention on Combating 
Bribery of Foreign Public Officials in International Business 
Transactions.
Conference agreement
      The House recedes to the Senate with the addition of 
language from the House bill related to the importance of small 
businesses and women owned enterprises in strengthening and 
expanding the private sector in sub-Saharan Africa. In 
addition, the conference agreement includes a new policy 
statement, based on section 717 of the Senate bill, expressing 
Congressional support for the accession of countries in sub-
Saharan Africa to the Convention on Combating Bribery of 
Foreign Public Officials in InternationalBusiness Transactions 
of the Organization for Economic Cooperation and Development.

                   Sec. 104. Eligibility Requirements

Present law
      Title V of the Trade Act of 1974 grants authority to the 
President under the Generalized System of Preferences (GSP) 
program to provide duty-free treatment on imports of eligible 
articles from beneficiary developing countries (BDC), which 
meet specific eligibility criteria.
House bill
      Section 4 of the House bill states that a sub-Saharan 
African country shall be eligible to participate in programs, 
projects, or activities, or receive assistance or other 
benefits under this Act if the President determines that the 
country does not engage in gross violations of internationally 
recognized human rights and has established, or is making 
continual progress toward establishing, a market economy, such 
as the establishment and enforcement of appropriate policies 
relating to:
            (1) promoting free movement of goods and services 
        between the United States and sub-Saharan Africa and 
        among countries in sub-Saharan Africa;
            (2) promoting the expansion of the production base 
        and the transformation of commodities and 
        nontraditional products for export through joint 
        venture projects between African and foreign investors;
            (3) trade issues, such as the protection of 
        intellectual property rights, improvements in 
        standards, testing, labeling and certification, and 
        government procurement;
            (4) the protection of property rights, such as 
        protection against expropriation and a functioning and 
        fair judicial system;
            (5) the 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;
            (6) appropriate fiscal systems, such as reducing 
        high import and corporate taxes, controlling government 
        consumption, participation in bilateral investment 
        treaties, and the harmonization of such treaties to 
        avoid double taxation;
            (7) foreign investment issues, such as the 
        provision of national treatment for foreign investors, 
        removing restrictions on investment, and other measures 
        to create an environment conducive to domestic and 
        foreign investment;
            (8) supporting the growth of regional markets 
        within a free trade area framework;
            (9) governance issues, such as eliminating 
        government corruption, minimizing government 
        intervention in the market such as price controls and 
        subsidies, and streamlining the business license 
        process;
            (10) supporting the growth of the private sector, 
        in particular by promoting the emergence of a new 
        generation of African entrepreneurs;
            (11) encouraging the private ownership of 
        government-controlled economic enterprises through 
        divestiture programs; and
            (12) observing the rule of law, including equal 
        protection under the law and the right to due process 
        and a fair trial.
      In determining whether a sub-Saharan African country is 
eligible under this section, the President shall take into 
account the following factors:
            (1) an expression by a country of its desire to be 
        an eligible country;
            (2) the extent to which a country has made 
        substantial progress toward reducing tariff levels, 
        binding its tariffs in the World Trade Organization 
        (WTO) and assuming meaningful binding obligations in 
        other sectors of trade, and eliminating nontariff 
        barriers to trade;
            (3) whether such country, if not already a member 
        of the WTO, is actively pursuing membership in that 
        organization;
            (4) the extent to which such country has a 
        recognizable commitment to reducing poverty, increasing 
        the availability of health care and educational 
        opportunities, the expansion of physical infrastructure 
        in a manner designed to maximize accessibility, 
        increased access to market and credit facilities for 
        small farmers and producers, and improved economic 
        opportunities for women as entrepreneurs and employees, 
        and promoting and enabling the formation of capital to 
        support the establishment and operation of micro-
        enterprises; and
            (5) whether or not such country engages in 
        activities that undermine U.S. national security or 
        foreign policy interests.
      The President shall monitor and review the progress of 
sub-Saharan African countries in order to determine their 
current or potential eligibility to participate in this Act. 
Such determinations shall be based on quantitative factors to 
the fullest extent possible and shall be included in the annual 
report requested by section 15 of this Act.
      A sub-Saharan African country that has not made continual 
progress in meeting the requirements with which it is not in 
compliance shall be ineligible to participate in programs, 
projects, or activities, or receive assistance or other 
benefits, under this Act.
Senate amendment
      Section 111 of the Senate amendment amends title V of the 
Trade Act of 1974 by inserting after section 506 a new section 
506A on the ``Designation of sub-Saharan African countries for 
certain benefits.''
      Notwithstanding any other provision of law, the President 
is authorized to designate a sub-Saharan African country 
eligible for the enhanced GSP benefits, if the President 
determines that the country:
            (A) has established, or is making continual 
        progress toward establishing:
                    (i) a market-based economy, where private 
                property rights are protected and the 
                principles of an open, rules-based trading 
                system are observed;
                    (ii) a democratic society, where the rule 
                of law, political freedom, participatory 
                democracy, and the right to due process and a 
                fair trial are observed;
                    (iii) an open trading system through the 
                elimination of barriers to United States trade 
                and investment and the resolution of bilateral 
                trade and investment disputes;
                    (iv) economic policies to reduce poverty, 
                increase the availability of health care and 
                educational opportunities, expand physical 
                infrastructure, and promote the establishment 
                of private enterprise; and
                    (v) a system to combat corruption and 
                bribery, such as signing the Convention on 
                Combating Bribery of Foreign Public Officials 
                in International Business Transactions;
            (B) 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; and
            (C) subject to the authority granted to the 
        President under the GSP program, otherwise satisfies 
        the GSP eligibility criteria.
      The President shall monitor and review the progress of 
each sub-Saharan African country in meeting these eligibility 
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. The 
President shall include the reasons for the determinations in 
the annual report required by section 115 of this title.
      If the President determines that a beneficiary sub-
Saharan African country is not making continual progress in 
meeting the eligibility requirements, the President shall 
terminate the designation of that country as a beneficiary sub-
Saharan African country for purposes of this section, effective 
January 1 of the year following the year in which such 
determination is made.
Conference agreement
      The conference agreement authorizes the President to 
designate a sub-Saharan African country that meets the 
eligibility criteria as eligible for the economic development 
related provisions in subtitle C. The eligibility criteria as 
in effect on the date of enactment apply to the trade benefits 
through an amendment to the Trade Act of 1974 included in 
subtitle B.
      The eligibility criteria as contained in the conference 
report reflect the Senate provisions, with the addition of 
criteria from the House bill on the protection of 
internationally recognized worker rights and the prohibition on 
the designation of countries as eligible under this Act that 
engage in activities that undermine U.S. national security or 
foreign policy interests. In addition, the conference agreement 
incorporates elements from the House bill on the provision of 
national treatment and measures to create an environment 
conducive to domestic and foreign investment; minimizing 
government interference in the economy through price controls, 
subsidies, and government ownership of economic assets; the 
protection of intellectual property; and the importance of 
micro-credit to the formation of capital markets.
      The section also stipulates that the President shall 
terminate the eligibility for preferential treatment under this 
Act for any sub-Saharan African country that is making 
continual progress in meeting the eligibility requirements.
      The eligibility criteria are designed to identify sub-
Saharan countries that are creating a climate conducive to 
greater levels of trade and investment, and with which the U.S. 
can build a growing economic partnership. While this section is 
designed to afford flexibility in this identification, and 
while the conferees have no target number of participants, it 
is clear that several sub-Saharan African countries 
unfortunately have in place policies that would not qualify 
them from accessing the benefits of the bill. These are sub-
Saharan African countries that discourage trade and investment. 
The conferees note that the eligibility criteria are similar to 
those USAID uses to allocate development assistance among 
African countries.
      The conferees urge the President to make determinations 
regarding country eligibility as soon as practicable.

     sec. 105. united states-sub-saharan africa trade and economic 
                           cooperation forum

Present law
      No provision.
House bill
      Section 5 of the House bill requires the President to 
convene annual high-level meetings between appropriate 
officials of the U.S. government and the governments of sub-
Saharan African countries in order to foster closer economic 
ties. Not later than 12 months after enactment, the section 
requires the President, after consulting with Congress and the 
governments concerned, shall establish a United States-Sub-
Saharan Africa Trade and Economic Cooperation Forum.
      In creating the Forum, the President shall:
            (1) direct the Secretaries of Commerce, the 
        Treasury, State, and the United States Trade 
        Representative (USTR) to host the first annual meeting 
        with their counterparts from eligible sub-Saharan 
        African countries, the Secretary General of the 
        Organization of African Unity, and government officials 
        from other appropriate countries in Africa to discuss 
        expanding trade and investment relations between the 
        United States and sub-Saharan Africa and the 
        implementation of this Act;
            (2) in consultation with Congress, encourage U.S. 
        non-governmental organizations (NGOs) and 
        representatives of the private sector to host annual 
        meetings with their respective counterparts from sub-
        Saharan Africa in conjunction with the annual meetings 
        of the Forum; and
            (3) to the extent practicable, meet with the heads 
        of government of eligible sub-Saharan African countries 
        no less than once every 2 years. The first meeting 
        should take place not later than 12 months after 
        enactment.
    In order to assist in carrying out the purposes of the 
Forum, the United States Information Agency shall disseminate 
regularly, through multiple media, economic information in 
support of the free market economic reforms described in this 
Act.
      The provision authorizes such sums as may be necessary to 
carry out this section. None of the funds authorized under this 
section may be used to create or support any NGO for the 
purpose of expanding or facilitating trade between the United 
States and sub-Saharan Africa.
Senate amendment
      Section 113 of the Senate amendment requires the 
President to convene annual meetings between senior officials 
of the U.S. 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. Not 
later than 12 months after the date of enactment, the 
President, after consulting with the officials of interested 
sub-Saharan African governments, shall establish a United 
States-Sub-Saharan African Trade and Economic Cooperation 
Forum.
      In creating the Forum, the President shall:
            (1) direct the Secretaries of Commerce, the 
        Treasury, State, and the USTR to invite their 
        counterparts from interested sub-Saharan African 
        governments and representatives of appropriate regional 
        organizations to participate in the first annual 
        meeting to discuss expanding trade and investment 
        relations between the United States and sub-Saharan 
        Africa;
            (2) in consultation with Congress, invite U.S. NGOs 
        and private sector representatives to host meetings 
        with their respective counterparts from sub-Saharan 
        Africa in conjunction with meetings of the Forum to 
        discuss expanding trade and investment relations 
        between the United States and sub-Saharan Africa;
            (3) as soon as practicable after enactment, meet 
        with the heads of the governments of interested sub-
        Saharan African countries for the purpose of discussing 
        the issues described in paragraph 1.
      In selecting issues of common interest to the United 
States-Sub-Saharan African Trade and Economic Cooperation 
Forum, section 706 of the Senate amendment requires the 
President to instruct the U.S. 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 human and social development in each country.
Conference agreement
      In order to expand U.S. trade and investment relations 
with sub-Saharan Africa and achieve the goals of the Act, the 
conferees believe that it is important to foster a regular 
dialogue between U.S. government officials and their 
counterparts from sub-Saharan African countries. Therefore, the 
legislation establishes a yearly forum at the Ministerial level 
to facilitate these discussions. The conferees also believe 
that it would help to promote the goals of this Act if the 
President, to the extent practicable, met with the heads of 
state of sub-Saharan African governments not less than once 
every two years.
      With respect to the countries eligible to participate in 
the Forum and the heads of state meeting to discuss expanding 
trade and investment relations between the United States and 
sub-Saharan Africa and the implementation of this title, the 
Senate recedes to the House with a modification to permit 
participation by countries that the President determines are 
taking substantial positive steps towards meeting the 
eligibility requirements set forth in section 104 of the Act 
(as well as countries that are found eligible under section 
104). The conferees expect the Administration to interpret this 
provision narrowly to allow as Forum participants only those 
countries that are undertaking substantial, positive reforms, 
although they may not satisfy all of the eligibility 
requirements. In addition, the conference agreement directs the 
Administration to invite to the Forum appropriate 
representatives of sub-Saharan African regional organizations, 
and government officials from other appropriate countries in 
sub-Saharan Africa.
      In addition, the conference agreement requires the 
President to encourage NGOs and representatives of the private 
sector to host annual meetings with their respective 
counterparts from sub-Saharan Africa in conjunction with the 
annual meetings of the Forum. The conferees observe that there 
is no precedent of using taxpayer funds to facilitate such 
meetings in conjunction with other multilateral fora and do not 
intend that taxpayer funds should be used in this instance.
      The conference agreement updates the reference to the 
United States Information Agency from the House bill to the 
United States Information Service.
      The conference agreement also includes the language from 
section 706 of the Senate amendment requiring the President to 
direct the U.S. delegates at the Forum to promote a review by 
the Forum on the HIV/AIDS epidemic in sub-Saharan Africa and 
the effect of the HIV/AIDS epidemic on the economic development 
of each country in sub-Saharan Africa.

                    Sec. 106. Reporting Requirement

Present law
      Section 134(b) of the Uruguay Round Agreements Act 
requires the President to submit five annual reports to 
Congress on his ``Comprehensive Trade and Development Policy 
for Countries in Africa.'' The President's fifth and final 
report was submitted in January 2000.
House bill
      Section 15 of the House bill requires the President to 
submit to Congress, not later than 1 year after enactment and 
for 6 years thereafter, a comprehensive report on the trade and 
investment policy of the United States for sub-Saharan Africa, 
and on the implementation of this Act. The last report required 
by section 134(b) of the Uruguay Round Agreements Act shall be 
consolidated and submitted with the first report required by 
this section.
Senate amendment
      Section 115 of the Senate amendment requires the 
President to submit a report to Congress on the implementation 
of this title not later than 1 year after the date of enactment 
of this Act, and annually thereafter for 4 years.
Conference agreement
      The conference agreement reflects House language 
requiring annual Presidential reports for 8 years on the trade 
and investment policy of the United States toward sub-Saharan 
Africa and on the implementation of this title, but strikes the 
language on the consolidation of the final report required by 
the Uruguay Round Agreements Act. This report was submitted to 
Congress in January 2000.

                  Sec. 107. Sub-Saharan Africa Defined

Present law
      No provision.
House bill
      Section 16 of the House bill defines the terms ``sub-
Saharan Africa'', ``sub-Saharan African country'', ``country in 
sub-Saharan Africa'', and ``countries in sub-Saharan Africa'' 
for the purposes of this Act as referring to the following or 
any successor political entities:
      Republic of Angola (Angola), Republic of Botswana 
(Botswana), Republic of Burundi (Burundi), Republic of Cape 
Verde (Cape Verde), Republic of Chad (Chad), Democratic 
Republic of Congo, Republic of the Congo (Congo), Republic of 
Djibouti (Djibouti), State of Eritrea (Eritrea), Gabonese 
Republic (Gabon), Republic of Ghana (Ghana), Republic of 
Guinea-Bissau (Guinea-Bissau), Kingdom of Lesotho (Lesotho), 
Republic of Madagascar (Madagascar), Republic of Mali (Mali), 
Republic of Mauritius (Mauritius), Republic of Namibia 
(Namibia), Federal Republic of Nigeria (Nigeria), Democratic 
Republic of Sao Tome and Principe (Sao Tome and Principe), 
Republic of Sierra Leone (Sierra Leone), Somalia, Kingdom of 
Swaziland (Swaziland), Republic of Togo (Togo), Republic of 
Zimbabwe (Zimbabwe), Republic of Benin (Benin), Burkina Faso 
(Burkina), Republic of Cameroon (Cameroon), Central African 
Republic, Federal Islamic Republic of the Comoros (Comoros), 
Republic of Cote d'Ivoire (Cote d'Ivoire), Republic of 
Equatorial Guinea (Equatorial Guinea), Ethiopia, Republic of 
the Gambia (Gambia), Republic of Guinea (Guinea), Republic of 
Kenya (Kenya), Republic of Liberia (Liberia), Republic of 
Malawi (Malawi), Islamic Republic of Mauritania (Mauritania), 
Republic of Mozambique (Mozambique), Republic of Niger (Niger), 
Republic of Rwanda (Rwanda), Republic of Senegal (Senegal), 
Republic of Seychelles (Seychelles), Republic of South Africa 
(South Africa), Republic of Sudan (Sudan), United Republic of 
Tanzania (Tanzania), Republic of Uganda (Uganda), Republic of 
Zambia (Zambia).
Senate amendment
      Section 104 of the Senate amendment is identical to the 
House bill provision except for the exclusion of the language 
applying the definition to any successor political entities.
Conference agreement
      The conference agreement includes the language from the 
House bill permitting the designation of successor political 
entities of the countries listed for benefits under this title. 
In addition, the conference agreement arranges the list of 
countries in alphabetical order.

                      Subtitle B--Trade Provisions

               Sec. 111. Eligibility for Certain Benefits

Present law
      Title V of the Trade Act of 1974, as amended, grants 
authority to the President to provide duty-free treatment on 
imports of eligible articles from beneficiary developing 
countries (BDC). Under section 503(a)(1), the President may not 
designate any article as GSP eligible within the following 
categories:
            (1) textiles and apparel articles which were not 
        eligible articles for purposes of this title on January 
        1, 1994;
            (2) watches, except watches entered after June 30, 
        1989 that the President determines will not cause 
        material injury to watch or watch band, strap, or 
        bracelet manufacturing and assembly operations in the 
        United States or U.S. insular possessions;
            (3) import-sensitive electronic articles;
            (4) import-sensitive steel articles;
            (5) footwear, handbags, luggage, flat goods, work 
        gloves, and leather wearing apparel which were not GSP 
        eligible articles on January 1, 1995;
            (6) import-sensitive semimanufactured and 
        manufactured glass products; and,
            (7) any other articles the President determines to 
        be import-sensitive in the context of GSP.
      Under section 502(a)(2), the President is authorized to 
designate any article that is the growth, product, or 
manufacture of a least developed developing country (LDDC) as 
an eligible article with respect to imports from LDDCs, if the 
President determines such article is not import-sensitive in 
the context of imports from LDDCs. This authority does not 
apply to statutorily exempt articles listed under paragraphs 
(1), (2), and (5) above.
      Under section 503(b)(3), no quantity of an agricultural 
product subject to a tariff-rate quota that exceeds the in-
quota quantity is eligible for duty-free treatment.
      Under section 503(c)(2)(D), whenever the President 
determines that exports by any BDC to the United States of a 
GSP eligible article (1) exceed a dollar limit of $75 million a 
year (a number which was set in 1996 and is indexed to increase 
by $5 million annually), or (2) equal or exceed a 50 percent 
share of the total value of U.S. imports of the article, then, 
not later than July 1 of the next year, such country is not 
treated as a BDC with respect to such article.
      Under section 503(c)(2)(A), GSP duty-free treatment 
applies to any eligible article which is the growth, product or 
manufacture of a BDC if: (1) that article is imported directly 
from a BDC into the U.S. customs territory; and, (2) the sum of 
(a) the cost or value of the materials produced in the BDC or 
member countries in an association which is treated as one BDC, 
plus (b) the direct costs of processing operations performed in 
such BDC or member countries is not less than 35 percent of the 
value of the article.
      Under section 505, no duty-free treatment shall remain in 
effect after September 30, 2001.
House bill
      In order to receive extended and enhanced GSP benefits 
under the House bill, sub-Saharan African countries must meet 
all of the criteria in current law regarding designation of 
beneficiary developing countries and also the eligibility 
requirements set forth in section 4 of H.R. 434. The existing 
statutory GSP designation criteria include internationally 
recognized worker rights, intellectual property rights, 
compensation for property expropriation, and market access. 
Section 8(a) of the House bill amends section 503(a)(1) of the 
Trade Act of 1974 to authorize the President to grant duty-free 
GSP treatment for products from eligible African GSP 
beneficiary countries that are currently excluded from the GSP 
program, if, after receiving advice from the International 
Trade Commission, he determines that imports of these products 
are not import sensitive in the context of imports from sub-
Saharan African countries. Opportunities for public comment 
would be provided in making this determination.
      The House bill does not change the rule of origin 
requirements under current law for GSP duty-free treatment on 
any currently eligible or any additional products, including 
textiles and apparel.
      With respect to the second required test of value 
content, section 8(b) of the House bill amends section 
503(a)(2) of the Trade Act of 1974 to allow up to 15 percent of 
the total value of the article from U.S.-made materials to 
count toward the 35 percent local value requirement for duty-
free entry under the GSP program. In order to encourage 
regional economic integration in Africa, the bill provides that 
the minimum 35 percentlocal value content may be cumulated in 
any eligible sub-Saharan African country.
      Section 8(c) amends section 503(c)(2)(D) of the Trade Act 
of 1974 to stipulate that the competitive need limits do not 
apply to imports from eligible countries in sub-Saharan Africa.
      Section 8(d) amends section 505 of the Trade Act of 1974 
to extend the GSP program until June 30, 2009, for eligible 
countries in sub-Saharan Africa.
      Section 8(f) establishes July 1, 1999 as the effective 
date for the amendments made to the GSP program for sub-Saharan 
Africa.
Senate amendment
      Section 111 of the Senate amendment creates a new section 
506A in the Trade Act of 1974, authorizing the President to 
provide duty-free treatment for imports from beneficiary sub-
Saharan African countries of any item, other than textiles or 
apparel products or textile luggage, that is designated as 
import sensitive under section 503(b)(1) of title V of the 
Trade Act of 1974. A beneficiary sub-Saharan African country is 
defined as those that meet the eligibility criteria under GSP 
and the criteria added under the new section 506A of the Trade 
Act of 1974. The general rules of origin governing duty-free 
entry under the GSP program would continue to apply, except 
that, in determining whether products are eligible for the 
enhanced benefits of the bill, up to 15 percent of the 
appraised value of the article at the time of importation may 
be derived from materials produced in the United States. In 
addition, under the new section 506A, the value of materials 
produced in any beneficiary sub-Saharan African country may be 
applied in determining whether the product meets the applicable 
rules of origin for purposes of determining the eligibility of 
an article to receive the duty-free treatment provided by this 
section. Section 111 also amends section 503(c)(2)(D) to waive 
permanently the competitive need limits that would otherwise 
apply to beneficiary sub-Saharan African countries.
      The new section 506A established by section 111 of the 
Senate amendment also requires the President to monitor, and 
report annually to Congress, on the progress the sub-Saharan 
African countries have made in meeting the three categories of 
eligibility criteria set forth. The new section 506A requires 
the President to terminate the designation of a country as a 
beneficiary sub-Saharan African country if that country is not 
making continual progress in meeting the eligibility 
requirements. Any such termination would be effective on 
January 1 of the year following the year in which the 
determination is made that the eligibility criteria are no 
longer met.
      Section 111 of the Senate amendment sets as a termination 
date for the duty-free treatment provided by this title as 
September 30, 2006. It further includes a clerical amendment to 
the table of contents in title V of the Trade Act of 1974 and 
sets the effective date for this title as October 1, 1999.
Conference agreement
      The House recedes to the Senate on the creation of a new 
section 506A in the Trade Act of 1974 for the ``Designation of 
Sub-Saharan African Countries for Certain Benefits.'' The 
provision incorporates the eligibility requirements in section 
107 as in effect on the date of enactment, as well as the 
eligibility requirements in the GSP program, for countries to 
receive the enhanced trade benefits under subtitle B.

          Sec. 112. Treatment of Certain Textiles and Apparel

Present law
      At present, textile and apparel articles are ineligible 
for duty-free treatment under the GSP program. Normal trade 
relations tariff rates apply to imports of textile and apparel 
articles into the United States from sub-Saharan Africa. 
Currently, only two countries in sub-Saharan Africa, Kenya and 
Mauritius, are subject to quantitative restrictions on the 
levels of textile and apparel articles that they can export to 
the United States.
House bill
      Section 4 of the House bill provides duty-free treatment 
under the GSP program to textile and apparel articles from 
eligible sub-Saharan African countries. Textile and apparel 
products eligible for duty-free and quota-free treatment must 
be substantially transformed in sub-Saharan Africa as 
determined by the ``Breaux-Cardin'' rules of origin enacted 
into law in 1994 (section 334 of P.L. 103-465). The rule of 
origin remains that articles must be the growth, product, or 
manufacture of an eligible country and also contain a minimum 
35 percent local value. As under present law, processes such as 
simple combining, packaging, or dilution would not constitute 
substantial transformation to qualify an article for trade 
benefits under this program. The article must also be directly 
imported from a beneficiary country.
      Section 7(b) of the House bill expresses the sense of 
Congress that:
            (1) It would be to the mutual benefit of the 
        countries in sub-Saharan Africa and the United States 
        to ensure that the commitments of the World Trade 
        Organization are faithfully implemented in each of the 
        member countries;
            (2) Reform of trade policies in sub-Saharan Africa 
        with the objective of removing structural impediments 
        to trade can assist the countries of the region in 
        achieving greater diversification of textile and 
        apparel export commodities and products and export 
        markets; and
            (3) The President should support textile and 
        apparel trade reform in sub-Saharan Africa by providing 
        technical assistance and encouraging business-to-
        business contacts with the region.
      Section 7(c)(1) provides that, pursuant to the WTO 
Agreement on Textiles and Clothing, the United States shall 
eliminate the existing quotas on textile and apparel exports to 
the United States from Kenya and Mauritius within 30 days after 
these countries adopt an efficient visa system to guard against 
unlawful transshipment of textile and apparel goods and the use 
of counterfeit documents. The provision requires the Customs 
Service to provide technical assistance to Kenya and Mauritius 
in the development and implementation of visa systems.
      Section 7(c)(2) requires the President to continue the 
existing no quota policy for other countries in sub-Saharan 
Africa.
      Section 7(d)(1) states that the President should ensure 
that any sub-Saharan African country that intends to export 
textile and apparel goods to the United States: (1) has in 
place an effective visa system to guard against unlawful 
transshipment of textile and apparel goods and the use of 
counterfeit documents; and (2) will cooperate fully with the 
United States to address and take action necessary to prevent 
circumvention, as provided in Article 5 of the WTO Agreement on 
Textiles and Clothing.
Senate amendment
      Section 112 of the Senate amendment provides beneficiary 
sub-Saharan African countries (as designated under the new 
section 506A of the Trade Act of 1974 created by the Senate 
amendment) with duty-free and quota-free access to the U.S. 
market for certain textiles and apparel products. In order to 
receive these benefits, a beneficiary sub-Saharan African 
country must (1) adopt an effective and efficient visa system 
to guard against unlawful transshipment of textile and apparel 
products and the use of counterfeit documents; and (2) enact 
legislation or regulations that would permit the U.S. Customs 
Service to investigate thoroughly allegations of transshipment 
through such country. Section 112 directs the U.S. Customs 
Service to provide technical assistance to the beneficiary sub-
Saharan African countries in complying with these two 
requirements.
      The benefits under section 112 of the Senate amendment 
are available only for the following textile and apparel 
products:
            (1) Apparel articles assembled in beneficiary sub-
        Saharan African countries from fabrics wholly formed 
        and cut in the United States, from yarns wholly formed 
        in the United States;
            (2) Apparel articles cut and assembled in 
        beneficiary sub-Saharan African countries from fabric 
        wholly formed in the United States from yarns wholly 
        formed in the United States, and assembled with thread 
        formed in the United States; and
            (3) Handloomed, handmade and folklore articles, 
        that have been certified as such by the competent 
        authority in the beneficiary sub-Saharan African 
        country.
      The Senate intends that this new program of textile and 
apparel benefits will be administered in a manner consistent 
with the regulations that apply under the ``Special Access 
Program'' for textile and apparel articles from Caribbean and 
Andean Trade Preference Act countries, as described in 63 Fed. 
Reg. 16474-16476 (April 3, 1998). Thus, the requirement that 
products must be assembled from fabric formed in the United 
States applies to all textile components of the assembled 
products, including linings and pocketing, subject to the 
exceptions that currently apply under the ``Special Access 
Program.''
      Section 112 also includes a safeguard measure, 
authorizing the President to impose appropriate remedies, 
including restrictions on or the removal of quota-free and 
duty-free treatment, in the event that imports of textile and 
apparel articles from a beneficiary sub-Saharan African country 
are being imported in such increased quantities as to cause 
serious damage, or actual threat of such damage, under the WTO 
Agreement on Textile and Clothing.
Conference agreement
      The conference agreement provides preferential treatment 
to certain apparel articles imported from beneficiary sub-
Saharan countries meeting the transhipment requirements set 
forth in section 113.
      Duty-free and quota-free treatment is provided for the 
following apparel articles:
            (1) 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;
            (2) apparel articles cut and assembled or knit-to-
        shape in one or more beneficiary sub-Saharan African 
        countries from fabrics or yarns wholly formed and cut 
        in the United States, from yarns wholly formed in the 
        United States and assembled with thread formed in the 
        United States;
            (3) knit-to-shape sweaters made from cashmere and 
        fine merino wool;
            (4) apparel articles wholly assembled in one or 
        more beneficiary sub-Saharan countries from fabrics not 
        available in commercial quantities in the United States 
        (e.g., those fabrics and yarns identified in Annex 401 
        of the NAFTA, which include fine count cotton knitted 
        fabrics for certain apparel, linen, silk, cotton 
        velveteen, fine wale corduroy, Harris Tweed, certain 
        woven fabrics made with animal hairs, certain 
        lightweight, high thread count poly-cotton woven 
        fabrics, and certain lightweight, high thread count 
        broadwoven fabrics used in the production of men's and 
        boy's shirts); and
            (5) certified handloomed, handmade and folklore 
        articles.
      Certain other apparel articles would be free of duties 
and of quantitative restrictions up to a specified level of 
imports. The cap on preferential treatment is 1.5% of total 
U.S. apparel imports (in square meter equivalents) for the 
first year of the bill, growing in equal increments in each of 
the seven succeeding one-year periods, to a maximum of 3.5% of 
U.S. apparel imports in the last year of the bill. The 
following apparel articles are eligible for preferential 
treatment under this cap:
            (1) for the first four years of the bill, apparel 
        articles wholly assembled in one or more lesser 
        developed beneficiary sub-Saharan African countries 
        (defined as beneficiary sub-Saharan African countries 
        with a 1998 per capita GNP of less than $1,500), 
        without regard to the origin of the fabric; and
            (2) apparel articles wholly assembled in one or 
        more beneficiary sub-Saharan African countries from 
        fabric wholly formed in one or more beneficiary 
        countries from yarn originating either in the United 
        States or in one or more beneficiary sub-Saharan 
        African countries (the country of origin of the yarn is 
        to be determined by the rules of origin set forth in 
        section 334 of the Uruguay Round Agreements Act).
      The conferees intend that the Secretary of Commerce shall 
determine and publish in the Federal Register in a timely 
manner on an annual basis the level of apparel imports (in 
square meter equivalents) eligible for duty-free treatment 
under the cap described above for each one year period. The 
conferees recognize that special program indicators will be 
necessary to identify apparel articles qualifying for duty-free 
treatment under the cap. In addition, in order to evaluate the 
trade liberalizing benefits provided under section 112 of the 
bill, the conferees encourage special program indicators to be 
created for all apparel articles covered by the bill.
      The bill also provides that import relief in the form of 
a tariff snapback shall be provided if the Secretary determines 
that an article qualifying for duty-free treatment under the 
cap from a single beneficiary sub-Saharan African country is 
being imported in such increased quantities and under such 
conditions as to cause ``serious damage, or threat thereof'' to 
the domestic industry producing the like or directly 
competitive article. The conference agreement directs the 
Secretary of Commerce to conduct inquiries under this section. 
Under authority delegated by Executive Order 11651, the 
Committee for the Implementation of Textile Agreements 
currently supervises the implementation of U.S. bilateral 
textile and apparel agreements, including making determinations 
of market disruption due to textile and apparel imports.
      Under the bill, the Secretary of Commerce will initiate 
an inquiry to determine whether import relief is warranted if 
there has been a surge in imports under the cap from a single 
beneficiary sub-Saharan African country based on import data. 
The Secretary of Commerce shall initiate an inquiry upon 
written request by an interested party, when such request is 
supported by sufficient evidence. The conferees intend the 
inquiry into whether import relief is warranted to be open and 
transparent. Key elements for ensuring an open and transparent 
process include notice of initiation, opportunity for a hearing 
open to interested parties (if requested), opportunity for 
written submissions and responses, and a written, published 
determination setting forth the reasoning that justifies the 
determination. The conferees intend the Secretary of Commerce 
to consider all relevant information received from interested 
parties. Furthermore, the conferees intend that when the 
Secretary of Commerce relies on information that is not 
publicly available, that information should be, to the extent 
practicable, corroborated with reasonably available 
information.
      For purposes of this section, 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.
      The conference agreement also authorizes the President to 
proclaim duty-free and quota-free treatment for fabrics and 
yarns not available in the United States, in addition to those 
fabrics and yarns already listed in Annex 401 of the NAFTA. Any 
interested party may request the President to consider such 
treatment for additional fabrics and yarns. The requesting 
party will bear the burden of demonstrating that a change is 
warranted by providing sufficient evidence. The President must 
make a determination within 60 calendar days of receiving a 
request from an interested party.
      The Senate recedes to the House on the elimination of 
existing quotas on textile and apparel articles imported into 
the United States from Kenya and Mauritius.
      With regards to findings and trimmings, the conference 
agreement states that an article eligible for preferential 
treatment under section 112 of the bill 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 article. For most apparel imports, findings and 
trimmings include sewing thread, hooks and eyes, snaps, 
buttons, ``bow buds'', decorative lace trim, elastic strips, 
and zippers, including zipper tapes, labels, and certain 
elastic strips. However, for apparel articles cut and 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, sewing thread is not 
included in the findings or trimmings exception.
      The conference agreement also provides that certain 
interlinings are eligible for treatment as findings and 
trimmings. The treatment of interlinings above shall 
beterminated if the President determines that U.S. manufacturers are 
providing such interlinings in the United States in commercial 
quantities.
      The conference agreement further provides that an article 
otherwise eligible for preferential treatment under section 112 
shall not be ineligible for such treatment because the article 
contains fibers or yarns not wholly formed in the United States 
or 1 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.

              Sec. 113. Protections Against Transshipment

Present law
      The Tariff Act of 1930, as amended, provides for civil 
monetary penalties for unlawful transshipment. These include 
penalties under section 1592 for up to a maximum of the 
domestic value of the imported merchandise or eight times the 
loss of revenue, as well as denial of entry, redelivery or 
liquidated damages for failure to redeliver the merchandise 
determined to be inaccurately represented. In addition, an 
importer may be liable for criminal penalties, including 
imprisonment for up to five years, under section 1001 of title 
18 of the United States Code for making false statements on 
import documentation.
House bill
      Section 7(c)(1) provides that, pursuant to the WTO 
Agreement on Textiles and Clothing, the United States shall 
eliminate the existing quotas on textile and apparel exports to 
the United States from Kenya and Mauritius within 30 days after 
these countries adopt an efficient visa system to guard against 
unlawful transshipment of textile and apparel goods and the use 
of counterfeit documents. The provision requires the Customs 
Service to provide technical assistance to Kenya and Mauritius 
in the development and implementation of visa systems.
      Section 7(c)(2) requires the President to: (1) continue 
the existing no quota policy for other countries in sub-Saharan 
Africa; and (2) submit a report to Congress by March 31 of each 
year concerning the growth in textiles and apparel exports to 
the United States from countries in sub-Saharan Africa in order 
to protect United States consumers, workers, and textile 
manufacturers from economic injury due to the no quota policy.
      Section 7(d)(1) states that the President should ensure 
that any sub-Saharan African country that intends to export 
textile and apparel goods to the United States: (1) has in 
place an effective visa system to guard against unlawful 
transshipment of textile and apparel goods and the use of 
counterfeit documents; and (2) will cooperate fully with the 
United States to address and take action necessary to prevent 
circumvention, as provided in Article 5 of the WTO Agreement on 
Textiles and Clothing.
      Section 7(d)(2) requires the President to impose 
penalties by denying an exporter, or any of its successors, 
duty-free treatment under this section for textile and apparel 
articles for a period of two years if the President determines, 
based on sufficient evidence, that the exporter has willfully 
falsified information regarding the country of origin, 
manufacture, processing, or assembly of a textile or apparel 
article for which duty-free treatment under the GSP program is 
claimed.
      Section 7(d)(3) underscores that all provisions of the 
laws, regulations, and procedures of the United States relating 
to the denial of entry of articles or penalties against 
individuals or entities for engaging in illegal transshipment, 
fraud, or other violations of the customs laws shall apply to 
imports from sub-Saharan countries.
      In order to facilitate close monitoring by the 
Administration and expanded oversight by the Committee, section 
7(d)(4) requires that the Customs Service submit to the 
Congress, by not later than March 31 of each year, a report on 
the effectiveness of visa systems required of Kenya and 
Mauritius and other countries that intend to export textiles 
and apparel products to the United States, and on measures 
taken by countries in sub-Saharan Africa to prevent 
circumvention as described in Article 5 of the WTO Agreement on 
Textiles and Clothing.
Senate amendment
      Section 112(a) of the Senate amendment provides that the 
preferential treatment accorded to imports of textiles and 
apparel shall only be extended to beneficiary sub-Saharan 
African countries that adopt an efficient visa system to guard 
against transshipment and the use of counterfeit documents, and 
enact legislation or promulgate regulations to permit 
transshipment investigations by the U.S. Customs Service.
      Section 112(d) directs the Customs Service to provide 
technical assistance to the beneficiary sub-Saharan African 
countries for the implementation of these requirements.
      Section 112 of the Senate amendment also provides that if 
an exporter is found to have engaged in transshipment with 
respect to textile or apparel products from a beneficiary sub-
Saharan African country, the President must deny all benefits 
under section 112 and 111 to such exporter, any successor of 
such exporter, and any other entity owned or operated by the 
principal of the exporter for a period of five years.
Conference agreement
      The conference agreement includes provisions from both 
the House and Senate bills, as well as several additional 
elements intended to prevent the transshipment of textile and 
apparel articles from sub-Saharan Africa.
      Section 113(a) sets forth the following requirements that 
beneficiary sub-Saharan countries must satisfy before 
preferential tariff treatment is extended to the covered 
textileand apparel articles pursuant to section 112(a):
            The country has adopted an effective visa system, 
        domestic laws, and enforcement procedures to prevent 
        unlawful transshipment of the covered articles and the 
        use of counterfeit documents relating to the entry of 
        the articles into the United States. An effective visa 
        system should require documentation supporting the 
        country of origin such as production records, 
        information relating to the place of production, the 
        number and identification of the types of machinery 
        used in the production, the number of employees 
        employed in production, and certification from both the 
        manufacturer and exporter. The conferees also expect 
        that countries adopt and implement domestic laws and 
        procedures consistent with Article 5 of the WTO 
        Agreement on Textiles and Clothing, which obligates 
        countries to establish the necessary legal provisions 
        and/or administrative procedures to address and take 
        action against circumvention.
            The country has adopted legislation or regulations 
        to permit verification of information by the U.S. 
        Customs Service. Such laws or regulations should be 
        clear and unambiguous.
            The country agrees to report on a timely basis 
        export and import information requested by U.S. 
        Customs. This requirement is not intended to 
        unnecessarily burden beneficiary countries and 
        specifically requires that the requested information be 
        consistent with the manner in which the country keeps 
        those records.
            The country cooperates fully with the Customs 
        Service to prevent circumvention and transshipment as 
        provided in Article 5 of the Agreement on Textiles and 
        Clothing. Article 5 of that Agreement establishes that 
        cooperation will include: (1) investigation of 
        circumvention practices; (2) exchange of documents, 
        correspondence, reports, and other relevant information 
        to the extent available; and (3) facilitation of plant 
        visits and contacts. The conferees also intend 
        cooperation and action to include the following: 
        suspending or denying export visas to manufacturers/
        exporters suspected of transshipping; sharing trade 
        data with the U.S. Customs Service (including import 
        data relating to textile and apparel); performing 
        factory visits in order to verify production (including 
        verification of the commodity produced, the quota 
        category and volume); providing information to U.S. 
        Customs on actions taken by the country relating to 
        production verification, the identity of factories and/
        or companies suspected of illegal transshipment, 
        further investigation or administrative action, the 
        names of open and producing factories and the types of 
        goods produced, and the names of closed factories; and 
        executing a memorandum of understanding with the United 
        States establishing the commitment of the beneficiary 
        sub-Saharan country to self-policing and sharing 
        enforcement results (including border searches, results 
        of factory verification visits, and administrative 
        penalties assessed against factories and exporters). 
        The United States fully expects that beneficiary sub-
        Saharan countries will take action against 
        circumvention and implement the cooperation principles 
        in Article 5 of the Agreement, including denial of 
        entry into the beneficiary sub-Saharan country of 
        merchandise suspected of transshipment. The United 
        States will vigorously enforce its rights to deny entry 
        and/or adjust quota charges to reflect the true origin 
        of the transshipped goods.
            The country agrees to report on a timely basis, at 
        the request of the Customs Service, documentation 
        establishing the country of origin of covered articles.
      Section 113(b)(1) also requires that importers comply 
with requirements similar in all material respects to the 
requirements regarding Certificates of Origin contained in 
Article 502.1 of the North American Free Trade Agreement 
(NAFTA) for a similar importation from Mexico, and section 
113(b)(2) sets forth the exceptions where a certificate of 
origin is not required.
      The conferees believe that transshipment is a serious 
violation of U.S. laws and undermines the benefits that would 
otherwise accrue to the beneficiary sub-Saharan African 
countries. Section 113(b)(3) of the conference agreement 
incorporates the penalty provisions from the Senate amendment 
denying for a period of five years all benefits provided under 
section 112 of this bill to the exporter, any successor of such 
exporter, and any other entity owned or operated by the 
principal of the exporter if the President determines, based on 
sufficient evidence, that an exporter has engaged in 
transshipment as defined in paragraph 4 of this section.
      Section 113(b)(4) incorporates the definition of 
transshipment from the Senate amendment. Transshipment is 
defined to have occurred when preferential treatment for a 
textile or apparel product 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. 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.
      Section 113(b)(5) incorporates the House provision 
requiring the U.S. Customs Service to monitor and report to 
Congress (on an annual basis beginning no later than March 31) 
on the effectiveness of the visa systems and measures taken to 
deter circumvention as described in the Article 5 of the 
Agreement on Textiles and Clothing.
      The conferees also believe that it is important for the 
U.S. Customs Service to make available technical assistance in 
preventing transshipment to interested sub-Saharan African 
countries. Section 113(c) directs U.S. Customs Service to 
provide technical assistance to beneficiary sub-Saharan 
countries for the implementation of an effective visa system 
and domestic laws. Section 113(c) also requires the Customs 
Service to provide assistance in training sub-Saharan African 
officials in anti-transshipment enforcement and to the extent 
feasible, assist such countries in developing and adopting an 
electronic visa system (ELVIS). The conferees expect that the 
U.S. Customs Service will provide model laws, regulations, and 
enforcement procedures and training seminars to beneficiary 
sub-Saharan countries requesting such assistance.
      Finally, the conferees believe that it is critical to 
provide the Customs Service with additional resources in order 
to provide technical assistance to sub-Saharan countries as 
well as for increased transshipment enforcement. Section 113(d) 
of the conference agreement authorizes $5,894,913.00 for this 
purpose. The conferees expect the U.S. Customs Service to 
utilize these resources as follows:
            Hiring of import specialists to be assigned to 
        selected U.S. ports, strategically placed teams, and 
        the Headquarters textile program, to administer the 
        program and provide oversight;
            Hiring of inspectors and investigators (Special 
        Agents) to be assigned to selected ports, and to 
        Headquarters textiles program to coordinate and ensure 
        implementation of Textile Production Verification Team 
        results;
            Hiring of international trade specialists to be 
        assigned at Headquarters to work on illegal textile 
        transshipment policy issues, and to the Strategic Trade 
        Center in New York to work on targeting and risk 
        assessment for illegal transshipment;
            Increased office space for additional personnel in 
        Hong Kong;
            Hiring of auditors for internal control and 
        document reviews to audit importers to ensure that they 
        are not engaging in textile and apparel transshipment;
            Additional travel funds to be used for deployment 
        of additional textile production verification teams 
        (``jump teams'') to sub-Saharan countries as required 
        under the bill and as warranted, based on U.S. Customs 
        risk analysis of suspected illegal textile 
        transshipment;
            Internal training for Customs personnel; and
            Training of foreign counterparts in risk management 
        analytical techniques and for teaching factory 
        inspection techniques, including training in effective 
        border examination, factory inspection techniques, 
        audit reviews skills, and model laws and regulations; 
        and for outreach to the U.S. Importing Community for 
        voluntary compliance programs and troubleshooting.
      The U.S. Customs Service has estimated that its current 
enforcement against textile and apparel transshipment from sub-
Saharan Africa has resulted in over 90% compliance. The 
conferees believe that the additional resources of 
$5,594,913.00, used as described above, will enable the U.S. 
Customs Service to continue, and even increase, this compliance 
rate after passage of this bill because the U.S. Customs 
Service will have more resources to continually review, expand, 
and modify its current practice of transshipment enforcement. 
The current practices include the use of jump-teams, 
informants, collection of production information, monitoring 
and analyzing imports trends, and the use of lists designating 
persons and companies found to be engaged in transshipping 
(``592A,'' ``592B,'' and the Administrative List containing the 
names of convicted foreign factories and foreign factories that 
have had administrative penalties assessed against them). The 
U.S. Customs Service will also use information available from 
private sector groups that monitor trade production activities 
in assessing risk factors and enforcing transshipment.

                         Sec. 114. Termination

Present law
      The Generalized System of Preferences (GSP) program is 
authorized through September 30, 2001.
House bill
      Section 8 of the House bill establishes the effective 
dates of the GSP program and the amendments made by this Act as 
July 1, 1999 through June 30, 2009 for eligible countries in 
sub-Saharan Africa.
Senate amendment
      Section 111 of the Senate amendment extends the regular 
GSP program for countries in sub-Saharan Africa through 
September 30, 2006 and establishes October 1, 1999, as the 
effective date for the enhanced GSP benefits set forth in this 
section with an expiration date of September 30, 2006.
Conference agreement
      The Conference agreement creates a new section 506C in 
the Trade Act of 1974 extending the regular GSP and enhanced 
duty-free treatment provided to beneficiary sub-Saharan African 
countries through September 30, 2008.

                     Sec. 115. Clerical Amendments

Present law
      Title V of the Trade Act of 1974 authorizes the President 
to extend duty-free treatment to eligible imports from 
beneficiary developing countries in accordance with the 
provisions of the title. The table of contents for the Trade 
Act of 1974 lists the sections contained in each title.
House bill
      No provision.
Senate amendment
      Section 111 of the Senate amendment amends the table of 
contents for title V of the Trade Act of 1974 by inserting 
after the item relating to section 505 the following new items:
      506A. Designation of sub-Saharan African countries for 
certain benefits.
      506B. Termination of benefits for sub-Saharan African 
countries.
Conference agreement
      The House recedes to the Senate. The conference agreement 
also adds a listing for ``Protections against transshipment'' 
as a new section 506B in the table of contents and 
redesignating the section on ``Termination of benefits for sub-
Saharan African countries'' as a new section 506C.

   sec. 116. free trade agreements with sub-saharan african countries

Present law
      No provision.
House bill
      In section 6 of the House bill, Congress declares that a 
United States-Sub-Saharan Africa Free Trade Area should be 
established, or free trade agreements entered into, to serve as 
the catalyst for increasing trade between the United States and 
sub-Saharan Africa, and increasing private sector development 
in sub-Saharan Africa.
      To this end, section 6 requires 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 develop a plan for entering into one or more 
trade agreements with eligible sub-Saharan African countries in 
order to establish a United States-Sub-Saharan Africa Free 
Trade Area. The plan shall include the following:
            (1) the specific objectives of the United States 
        with respect to the establishment of the free trade 
        area and a suggested timetable;
            (2) the benefits to both the United States and sub-
        Saharan Africa with respect to the free trade area;
            (3) a mutually agreed-upon timetable for 
        establishing a free trade area;
            (4) the implications for and the role of regional 
        and sub-regional organizations in sub-Saharan Africa;
            (5) subject matter anticipated to be covered and 
        U.S. laws, programs, and policies, as well as the laws 
        of participating eligible African countries and 
        existing economic cooperation and trade agreements that 
        may be affected; and
            (6) procedures to ensure adequate consultation with 
        Congress and the private sector during the 
        negotiations, consultation with the Congress regarding 
        all matters relating to implementing of the 
        agreement(s), approval by the Congress of the 
        agreement(s), and adequate consultations with the 
        relevant African governments and African regional and 
        subregional intergovernmental organizations during the 
        negotiations of the agreement(s).
      Not later than 12 months after the date of enactment, the 
President shall prepare and transmit to Congress a report on 
the plan developed.
Senate amendment
      Section 114 of the Senate amendment requires the 
President to examine the feasibility of negotiating a free 
trade agreement (or agreements) with interested sub-Saharan 
African countries.
      Not later than 12 months after the date of enactment of 
this Act, the President shall submit a report to the Senate 
Finance Committee and the House Ways and Means Committee 
regarding the feasibility of negotiating such agreement (or 
agreements). If the President determines that the negotiation 
of any such free trade agreement is feasible, the President 
shall provide a detailed plan for such negotiation that 
outlines the objectives, timing, any potential benefits to the 
United States and sub-Saharan Africa, and the likely economic 
impact of any such agreement.
Conference agreement
      By eliminating the barriers that currently exist to 
developing stronger, mutually beneficial trade and investment 
relations between the United States and sub-Saharan Africa, the 
conferees believe that the negotiation of one or more free 
trade agreements would serve an important catalyst in the 
economic development of sub-Saharan Africa.
      The Senate recedes to the House, with a modification to 
state that the negotiation of free trade agreements, rather 
than the establishment of a Free Trade Area, with interested 
countries in sub-Saharan Africa, is an important catalyst for 
increasing trade between the United States and sub-Saharan 
Africa and increasing private sector development in sub-Saharan 
Africa.
      Consistent with this policy objective, the conference 
agreement requires the President to prepare and transmit to 
Congress a plan for the purpose of negotiating andentering into 
one or more trade agreements with interested eligible sub-Saharan 
African countries. The plan shall include the specific objectives of 
the United States with respect to the negotiations and a suggested 
timetable, the benefits to both the United States and the relevant sub-
Saharan African countries, a mutually agreed upon timetable for the 
President's report should also include procedures to ensure adequate 
consultation with Congress and the private sector during the 
negotiations, consultation with Congress regarding all matters relating 
to implementation of the free trade agreements, approval by Congress of 
the agreements, and adequate consultation with the relevant African 
governments and regional and sub-regional intergovernmental 
organizations during the negotiations.
      The conference agreement also clarifies that the 
President's report should include procedures to ensure adequate 
consultation with Congress and the private sector during the 
negotiations, consultation with Congress regarding all matters 
relating to implementation of free trade agreements, approval 
by Congress of the agreements, and adequate consultation with 
the relevant African governments, and regional and sub-regional 
intergovernmental organizations during the negotiations.

  Sec. 117. Assistant United States Trade Representative for African 
                                Affairs

Present law
      Section 141 of the Trade Act of 1974 established within 
the Executive Office of the President the office of the United 
States Trade Representative (USTR). The President is directed 
to appoint a person to head the office and to serve as USTR.
House bill
      Section 13 of the House bill expresses the sense of 
Congress that the position of Assistant United States Trade 
Representative (AUSTR) for African Affairs is integral to the 
U.S. commitment to increasing U.S.-sub-Saharan African trade 
and investment.
      The provision requires the President to maintain a 
position of AUSTR for African Affairs within the Office of USTR 
to direct and coordinate interagency activities on U.S.-Africa 
trade policy and investment matters and serve as: (1) a primary 
point of contact in the executive branch for persons engaged in 
trade between the U.S. and sub-Saharan Africa; and (2) the 
chief advisor to the USTR on issues of trade with Africa.
      The President shall ensure that the AUSTR for African 
Affairs has adequate funding and staff to carry out the duties 
described in this section.
Senate amendment
      No provision.
Conference agreement
      The Senate recedes to the House with a modification. The 
modification expresses the Sense of Congress that the position 
of AUSTR should be maintained and is integral to strengthening 
U.S.-sub-Saharan African trade and economic relations.
      The conferees note that since the Office on African 
American Affairs was created in 1998, the United States has 
signed several significant trade agreements with sub-Saharan 
Africa, including a Bilateral Trade and Investment Treaty with 
Mozambique, and Trade and Investment Framework Agreements with 
South Africa and Ghana.
      The conference agreement reflects the conferees' opinion 
that the AUSTR for African Affairs should: (1) act as a senior 
negotiator with sub-Saharan African countries; (2) take a lead 
role in designating participants in the U.S.-sub-Saharan 
African Economic and Cooperation Forum; (3) take a lead role in 
designating sub-Saharan African countries as beneficiary 
countries; and (4) take a lead role in administering and 
implementing the trade provisions of this Act.

            Subtitle C--Economic Development Related Issues

Sec. 121. Sense of Congress Regarding Comprehensive Debt Relief for the 
                       World's Poorest Countries

Present law
      In FY 2000, Congress supported U.S.-led efforts to 
enhance the Heavily Indebted Poor Countries (HIPC) Initiative 
by funding roughly one-third of the direct costs to the United 
States, as well as authorizing the use of IMF internal 
resources, including earnings on investments of profits of 
sales of IMF gold, for HIPC debt relief (Consolidated 
Appropriations Act for FY 2000 H.R. 3194; P.L. 106-113).
House bill
      Section 9 of the House bill expresses the sense of the 
Congress that the Secretary of the Treasury should instruct the 
United States Executive Directors of the International Bank for 
Reconstruction and Development, the International Monetary 
Fund, and the African Development Bank to use the voice and 
votes of the Executive Directors to encourage vigorously their 
respective institutions to develop enhanced mechanisms which 
further the following goals in eligible countries in sub-
Saharan Africa:
            (1) Strengthening and expanding the private sector, 
        especially among women-owned businesses.
            (2) Reducing tariffs, nontariff barriers, and other 
        trade obstacles, and increasing economic integration.
            (3) Supporting countries committed to accountable 
        government, economic reform, the eradication of 
        poverty, and the building of civil societies.
            (4) Supporting deep debt reduction at the earliest 
        possible date with the greatest amount of relief for 
        eligible poorest countries under the ``Heavily Indebted 
        Poor Countries'' (HIPC) debt initiative.
      It is the sense of the Congress that relief provided to 
countries in sub-Saharan Africa that qualify for the HIPC debt 
initiative should be made primarily through grants rather than 
through extended-term debt, and that interim relief or interim 
financing should be provided for eligible countries that 
establish a strong record of macroeconomic reform.
Senate amendment
      In Section 714 of the Senate amendment, 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.
            (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 HIPC 
        Initiative, 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.
            (6) Recently, the President requested Congress to 
        provide additional resources for bilateral debt 
        forgiveness and additional United States contributions 
        to the HIPC Trust Fund.
      Section 714 expresses the sense of 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.
Conference agreement
      The House recedes to the Senate with minor technical 
modifications.

                 Sec. 122. Executive Branch Initiatives

Present law
      No provision.
House bill
      In section 10 of the House bill 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 sub-Saharan 
Africa. It is the sense of the Congress that this Partnership 
is a companion to the policy goals set forth in this Act.
      Section 10 provides that 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 WTO 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 participation 
        in future negotiations in the WTO 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.
Senate amendment
      No provision.
Conference agreement
      The Senate recedes to the House.

     Sec. 123. Overseas Private Investment Corporation Initiatives

Present law
      Title IV of Part I of the Foreign Assistance Act of 1961, 
as amended (Public Law 87-195), established the Overseas 
Private Investment Corporation (OPIC), a Board of Directors for 
the Corporation, consisting of 15 members, and authorized the 
corporation to create equity funds.
House bill
      Section 11 of the House bill expresses the sense of the 
Congress that OPIC should use its current authorities to 
initiate an equity fund or 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. 
The provision specifies how each fund should be structured, 
capitalized and implemented.
      Section 12 of the bill amends Section 233 of the Foreign 
Assistance Act of 1961 to direct the OPIC Board to form an 
advisory committee to develop and implement policies, programs 
and financial instruments with respect to sub-Saharan Africa. 
It directs the advisory committee to 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. And it also provides for the termination of the 
committee four years after the date of enactment and for a 
report on the steps that the Board has taken to implement the 
committee's recommendations six months after the date of 
enactment and annually thereafter for the next four years.
Senate bill
      No provision.
Conference agreement
      The Senate recedes to the House with a slightly modified 
provision changing the name of the advisory committee to the 
investment advisory council. In addition, the conference 
agreement specifies that the OPIC Board shall take 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 programs and 
policies for sub-Saharan Africa.

                Sec. 124. Export-Import Bank Initiatives

Present law
      The Export-Import Bank is advised by a sub-Saharan Africa 
Advisory Committee (SAAC) on the expansion of its activities in 
sub-Saharan Africa.
House bill
      Section 12(b) of the House bill would establish a SAAC 
for the Bank.
Senate amendment
      No provision.
Conference agreement
      The conference agreement strikes section 12(b) of the 
House bill in its entirety, since an advisory committee was 
created previously by the Export-Import Bank Reauthorization 
Act of 1997 (P.L. 105-121). Instead, the conference agreement 
expresses the sense of Congress that the Export-Import Bank 
should continue to take measures to promote the expansion of 
the Bank's commitments in sub-Saharan Africa. The conference 
provision also commends the SAAC for aiding the Bank in 
doubling the number of sub-Saharan African countries in which 
the Bank is open, and by increasing by tenfold the Bank's 
support for sales to sub-Saharan Africa from fiscal year 1998 
to fiscal year 1999.

Sec. 125. Expansion of the United States and Foreign Commercial Service 
                         in Sub-Saharan Africa

Present law
      No provision.
House bill
      Section 14 of the House bill would make a number of 
findings regarding the Service's presence in sub-Saharan Africa 
and direct the Service to expand its presence in that region. 
It also would require the Service to identify new market 
opportunities and barriers thereto, and to make efforts to 
facilitate U.S. entry into those markets, with an annual report 
on such efforts to Congress.
Senate amendment
      No provision.
Conference agreement
      The conference agreement adopts a modified version of the 
House provision that directs the International Trade 
Administration (ITA), rather than the Service, to carry out the 
market entry and barrier identifications and make those 
identifications publicly available. The ITA, which already 
undertakes trade-related research efforts, is better suited to 
carrying out this initiative.

  Sec. 126. Donation of Air Traffic Control Equipment to Eligible Sub-
                       Saharan African Countries

Present law
      No provision.
House bill
      Section 16 of the House bill expresses the sense of the 
Congress that, to the extent appropriate, the U.S. Government 
should make every effort to donate to governments of sub-
Saharan African countries (determined to be eligible under 
section 4 of this Act) air traffic control equipment that is no 
longer in use, including appropriate related reimbursable 
technical assistance.
Senate amendment
      No provision.
Conference agreement
      The Senate recedes to the House.

 Sec. 127. Additional Authorities and Increased Flexibility to Provide 
            Assistance under the Development Fund for Africa

Present law
      Section 496 of Chapter 10 of the Foreign Assistance Act 
of 1961 established the Development Fund for Africa (DFA) to 
promote the participation of Africans in long term sustainable 
development. Title V of the International Security and 
Cooperation Act of 1981 established the African Development 
Foundation (ADF) in order to provide assistance aimed at promoting 
economic opportunities and community development in Africa.
House bill
      Section 17 of the House bill expresses the sense of 
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.
      In section 17 of the House bill, Congress makes the 
following declarations:
            (1) The DFA 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 DFA will complement the other provisions of 
        this Act 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 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.
                    (H) Ensuring sustainable economic growth 
                through environmental protection.
            (4) The ADF 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 ADF 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 ADF 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 
        Act.
      In addition, section 17 of the House bill amends section 
496(h) of the Foreign Assistance Act of 1961 (22 U.S.C. 
2293(h)) by:
            (A) redesignating paragraph (3) as paragraph (4); 
        and
            (B) 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.
      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).
Senate amendment
      No provision.
Conference agreement
      The Senate recedes to the House.

 Sec. 128. Assistance from United States Private Sector to Prevent and 
                 Reduce HIV/AIDS in Sub-Saharan Africa

Present law
      No provision.
House bill
      Section 18 of the House bill expresses the sense of 
Congress that U.S. 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, U.S. 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.
Senate amendment
      No provision.
Conference agreement
      The Senate recedes to the House.

  Sec. 129. Sense of the Congress Relating to HIV/AIDS Crisis in Sub-
                             Saharan Africa

Present law
      No provision.
House bill
      In section 19 of the House bill, Congress finds that:
            (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.
            (3) 83 percent of the estimated 11,700,000 deaths 
        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 the 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.
    Section 19 of the House bill expresses the sense of 
Congress that:
            (1) addressing the HIV/AIDS crisis in sub-Saharan 
        Africa should be a central component of U.S. 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 U.S. 
        legislation.
Senate amendment
      No provision.
Conference agreement
      The Senate recedes to the House.

      Sec. 130. Study on Improving African Agricultural Practices

Present law
      No provision.
House bill
      No provision.
Senate amendment
      Section 716 of the Senate amendment authorizes the USDA, 
in consultation with the American Land Grant Colleges and 
Universities and not-for-profit international organization, to 
conduct a two-year study on ways to improve the flow of 
American farming techniques and practices to African farmers. 
The study conducted by the USDA 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 study shall be submitted 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.
      The USDA is encouraged to consult with American Land 
Grant Colleges and not-for-profit international organizations 
that have firsthand knowledge of current African farming 
practices.
      There is authorized to be appropriated $2,000,000 to 
conduct the study.
Conference agreement
      The House recedes to the Senate, with a modification to 
delete the authorization of funds.

      sec. 131. sense of the congress regarding efforts to combat 
             desertification in african and other countries

Present law
      No provision.
House bill
      No provision.
Senate amendment
      In section 718 of the Senate amendment, Congress finds 
that:
            (1) desertification affects approximately one-sixth 
        of the world's population and one-quarter of total land 
        area;
            (2) over 1,000,000 hectacres of Africa are affected 
        by desertification;
            (3) dryland degradation is an underlying cause of 
        recurrent famine in Africa;
            (4) the United Nations Environmental 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 
        partnership throughout Africa and other nations 
        affected by desertification, help alleviate social 
        economic crises caused by misuse of natural resources, 
        and reduce dependence on foreign aid, by taking a 
        leading role to combat desertification.
    Section 718 of the Senate amendment expresses of the sense 
of the Senate that the United States should expeditiously work 
with the international community, particularly Africa and other 
nations 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.
Conference agreement
      The House recedes to the Senate with a technical 
modification to express the sense of the Congress instead of 
the sense of the Senate.

              TITLE II--TRADE BENEFITS FOR CARIBBEAN BASIN

         Subtitle A--Trade Policy for Caribbean Basin Countries

                         Sec. 201. Short Title

Present law
      No provision.
House bill
      No provision, but Section 1 of H.R. 984, as approved by 
the Committee on Ways and Means, provides that the subtitle may 
be cited as the Caribbean and Central America Relief and 
Economic Stabilization Act (CCARES).
Senate amendment
      Section 201 of the Senate bill provides that the subtitle 
may be cited as the Caribbean Basin Trade Enhancement Act 
(CBTEA).
Conference agreement
      The Title of the Act is the Caribbean Basin Trade 
Partnership Act.

                     Sec. 202. Findings and Policy

Present law
      The Caribbean Basin Initiative (CBI) program was 
established by the Caribbean Basin Economic Recovery Act 
(CBERA), which was enacted on August 5, 1983. This legislation 
authorized the President to grant duty-free treatment to 
imports of eligible articles from designated Caribbean 
countries. The basic purpose of the CBI program, as originally 
proposed by President Ronald Reagan, was to respond to an 
economic crisis in the Caribbean by encouraging industrial 
development primarily through preferential access to the U.S. 
market. The goal was to promote political and social stability 
in a strategically important region. CBI trade benefits were 
made permanent in 1990.
House bill
      No provision, however Section 2 of H.R. 984, as approved 
by the Committee on Ways and Means makes Congressional findings 
relating to the damage caused to the Caribbean Basin region by 
Hurricanes Mitch and George and states that United States 
assistance to the region should focus on, in addition to the 
short-term disaster assistance, long-term solutions for a 
successful economic recovery of Central America and the 
Caribbean. Finally the findings state that the Caribbean Basin 
Economic Recovery Act has represented a permanent and 
successful commitment by the United States to encourage the 
development of strong democratic governments and revitalized 
economies in neighboring countries in the Caribbean Basin.
      Section 102 of H.R. 984, as approved by the Committee on 
Ways and Means, states that it is, therefore, the policy of the 
United States to: (1) offer Caribbean Basin beneficiary 
countries tariff and quota treatment equivalent to that 
accorded to products of NAFTA countries, and to seek the 
accession of these partnership countries to NAFTA or a free 
trade agreement comparable to NAFTA at the earliest possible 
date, with the goal of achieving full NAFTA participation by 
all Caribbean countries by January 1, 2005; and (2) assure that 
the domestic textile and apparel industry remains competitive 
in the global marketplace by encouraging the formation and 
expansion of ``partnerships'' between the textile and apparel 
industry of the United States and the textile and apparel 
industry of various countries located in the Western 
Hemisphere.
Senate amendment
      The Senate bill contains similar Congressional findings.
      Section 202(b) of the Senate bill states that it is the 
policy of the United States to: (1) offer Caribbean Basin 
beneficiary countries willing to prepare to become a party to 
the FTAA or a comparable 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) seek the participation 
of Caribbean Basin beneficiary countries in the FTAA or a trade 
agreement comparable to the FTAA at the earliest possible date, 
with the goal of achieving full participation in such an 
agreement not later than 2005.
Conference agreement
      The findings contained in section 2 of the conference 
agreement set out the underlying rationale for expansion of the 
CBI program. This section describes the conferees' agreement 
that the U.S. response to the devastation caused by Hurricanes 
Mitchand Georges should include, in addition to short-term 
disaster assistance, a long-term mechanism to promote economic recovery 
in Central America and the Caribbean. Based on the successful record of 
the Caribbean Basin Initiative, the Conferees believe that economic 
recovery will be achieved most effectively by enhancing the region's 
opportunities to expand its international trade with important trading 
partners such as the United States.
      The success of the CBI program indicates that increasing 
international trade with the CBI region will also promote the 
growth of United States exports, decrease illegal immigration, 
and improve regional cooperation in efforts to fight drug 
trafficking. Finally, the conferees intend that this bill 
foster increased opportunities for U.S. companies in the 
textile and apparel sector to expand co-production arrangements 
with countries in the CBI region, thereby sustaining and 
preserving manufacturing operations in the United States that 
would otherwise be relocated to the Far East.

                         Sec. 203. Definitions

      Section 3 defines several terms used in the bill.

        Subtitle B--Trade Benefits for Caribbean Basin Countries

Sec. 211. Temporary Provisions to Provide Additional Trade Benefits to 
                     Certain Beneficiary Countries

Present law
      Under the CBERA, imports from CBI beneficiary countries, 
except for certain products that are statutorily excluded, are 
granted duty-free treatment, subject to specific eligibility 
requirements. Statutorily excluded articles are ineligible for 
duty-free treatment under the CBI. These excluded products are: 
textile and apparel articles that are subject to textile 
agreements, canned tuna, petroleum and petroleum products, 
footwear, handbags, luggage, flat goods, work gloves, and 
leather-wearing apparel. Also excluded are certain watches and 
watch products.
      Under NAFTA, imports of these products from Mexico 
(excluded from CBI and listed above) receive either declining 
tariff or duty-free and quota-free treatment. Chapter Four of 
NAFTA establishes rules of origin for identifying goods that 
are to be treated as ``originating in the territories of NAFTA 
parties'' and are therefore eligible for preferential treatment 
accorded to originating goods under NAFTA, including reduced 
duties and duty-free and quota-free treatment.
House bill
      No provision, however section 104 of the H.R. 984 amends 
section 213(b) of the CBERA to provide tariff and quota 
treatment on imports from CBI beneficiary countries of excluded 
articles that is identical to tariff and quota treatment 
accorded like articles imported from Mexico under NAFTA during 
a temporary period ending on the date that either NAFTA 
accession or a reciprocal free trade agreement enters into 
force with the partnership country, or on the fifth anniversary 
of the temporary treatment, whichever is earlier.
      Section 104 of the bill provides that NAFTA tariff and 
quota treatment would apply to CBI articles that meet NAFTA 
rules of origin (treating the United States and CBI beneficiary 
countries as ``parties'' under the agreement for this purpose). 
Customs procedures applicable to exporters under NAFTA also 
must be met for partnership countries to qualify for parity 
treatment. Imports of articles currently excluded under CBI, 
which do not meet the conditions of NAFTA parity, would 
continue to be excluded from the CBI program.
Senate amendment
      The Senate bill applies NAFTA tariff treatment to all 
excluded products, with the exception of textiles and apparel 
which are treated separately as described below.
Conference agreement
      NAFTA tariff treatment applies to goods excluded from 
CBI, except to textiles and apparel. More specifically, for 
imports of canned tuna, petroleum and petroleum products, 
footwear, handbags, luggage, flat goods, work gloves, and 
leather-wearing apparel, the conference agreement provides an 
immediate reduction in tariffs equal to the preference Mexican 
products enjoy under NAFTA. The applicable duty paid by 
importers on such goods would be equal to the duty applicable 
to the same goods if entered from Mexico. In order for their 
products to qualify for the preferences afforded under this 
Act, whether applied to textiles and apparel or other products, 
the beneficiary country must comply with customs procedures 
equivalent to those required under the NAFTA.

 Treatment of Textile and Apparel Imports from Caribbean Countries and 
                                 Mexico

              a. GAL Program and ``807'' Tariff Treatment

Present law
      The ``Special Access Program for Textiles,'' established 
by regulation in February 1986, provides flexible Guaranteed 
Access Levels (GALs) to the United States market for textile or 
apparel and ``made up'' textile product categories (not fabric, 
yarn, or other textile products) assembled in CBI countries 
from fabrics wholly formed and cut in the United States, under 
bilateral agreements. GALs (also known as ``807A'') are 
separate limits from (and usually significantly higher than) 
standard quota levels, and are generally increased upon request 
of the exporting country.
      Imports under item 9802.00.80 of the U.S. Harmonized 
Tariff Schedule (HTS) (previously item 807), which are 
assembled abroad from U.S.-fabricated components, including 
apparel assembled in Caribbean countries from fabric cut in the 
United States, are assessed duty only on the value-added 
abroad. Under NAFTA, Mexico receives duty-free and quota-free 
treatment on articles assembled from U.S.-formed and cut 
fabric.
      Certain textile and apparel articles from major supplying 
CBI countries are subject to import quotas under bilateral 
agreements negotiated on a product-category basis under 
authority of section 204 of the Agricultural Act of 1956 and in 
accordance with the Uruguay Round Agreement on Textiles and 
Clothing. Articles under quota may be assembled from U.S. and/
or foreign components.
House bill
      No provision, but under section 104 of H.R. 984, as 
approved by the Committee on Ways and Means, imports of textile 
and apparel articles from CBI partnership countries that meet 
NAFTA rules of origin would receive tariff treatment equivalent 
to such goods originating in Mexico and would enter quota-free. 
Under H.R. 984, there would be no change in the treatment of 
non-originating textile products currently subject to import 
quotas under bilateral and multilateral textile agreements.
      Section 104 of H.R. 984 eliminates import restraint 
levels and duties on textile and apparel articles: (1) 
assembled in a partnership country from fabrics wholly formed 
and cut in the United States from yarns formed in the United 
States; (2) cut and assembled in a partnership country from 
fabrics wholly formed in the United States, from yarns wholly 
formed in the United States; (3) knit-to-shape in a partnership 
country from yarns wholly formed in the United States; or (4) 
made in a partnership country from fabric knit in a partnership 
country from yarn wholly formed in the United States. Hand-
made, hand-loomed and folklore articles of the region also 
qualify for duty-free and quota-free treatment.
Senate amendment
      The Senate bill provides no preferential treatment for 
textile products, with the exception of certain hand-made, 
hand-loomed and folklore articles and certain textile luggage. 
With respect to apparel products, duty-free, quota-free 
treatment applies to those products listed below. Section 101 
of the Senate bill would extend immediate duty-free and quota-
free treatment to the following apparel products:
            (1) apparel articles assembled in an eligible CBI 
        beneficiary country from U.S. fabrics wholly formed 
        from U.S. yarns and cut in the United States that would 
        enter the United States under Harmonized Tariff 
        Schedule (HTS) item number 9802.00.80 (a provision that 
        otherwise allows an importer to pay duty solely on the 
        value-added abroad when U.S. components are shipped 
        abroad for assembly and re-imported into the United 
        States);
            (2) apparel articles entered under chapters 61 and 
        62 of the HTS where they would have qualified for HTS 
        9802.00.80 treatment but for the fact that the articles 
        were subjected to certain types of washing and 
        finishing;
            (3) apparel articles cut and assembled in the 
        eligible CBI country from U.S. fabric formed from U.S. 
        yarn and sewn in the Caribbean with U.S. thread;
            (4) handloomed, handmade and folklore articles 
        originating in the CBI beneficiary country;
            (5) textile luggage assembled in an eligible CBI 
        beneficiary country from U.S. fabrics wholly formed 
        from U.S. yarns and cut in the United States that would 
        enter the United States under Harmonized Tariff 
        Schedule (HTS) item number 9802.00.80; and
            (6) textile luggage cut and assembled in the 
        eligible CBI country from U.S. fabric formed from U.S. 
        yarn and sewn in the Caribbean with U.S. thread.
      The Senate intends that this new program of textile and 
apparel benefits will be administered in a manner consistent 
with the regulations that apply under the ``Special Access 
Program'' for textile and apparel articles from Caribbean and 
Andean Trade Preference Act countries, as described in 63 Fed. 
Reg. 16474-16476 (April 3, 1998). Thus, the requirement that 
products must be assembled from fabric formed in the 
UnitedStates applies to all textile components of the assembled 
products, including linings and pocketing, subject to the exceptions 
that currently apply under the ``Special Access Program.''
Conference agreement
      The House recedes with an amendment that provides duty-
free, quota-free treatment to the following apparel products:
            (1) apparel articles assembled in a CBTPA country 
        from fabrics wholly formed and cut in the United 
        States, from yarns wholly formed 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 but for 
        the fact that the articles were embroidered or 
        subjected to stone-washing, enzyme-washing, acid 
        washing, perma-pressing, oven-baking, bleaching, 
        garment-dyeing, screen printing, or other similar 
        processes;
            (2) apparel articles cut in a CBTPA beneficiary 
        country from fabric wholly formed in the United States 
        from yarns wholly formed in the United States, if such 
        articles are assembled in such country with thread 
        formed in the United States;
            (3) certain 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, and knit apparel articles (other 
        than certain T-shirts, as described below) 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, in an amount not to 
        exceed 250 million square meter equivalents (SMEs) 
        during the 1-year period beginning on October 1, 2000. 
        That amount will increase by 16 percent, compounded 
        annually, in each succeeding 1-year period through 
        September 30, 2004. In each 1-year period thereafter 
        through September 30, 2008, the amount will be the 
        amount that was in effect for the 1-year period ending 
        on September 30, 2004, or such other amount as may be 
        provided by law. For T-shirts, other then underwear T-
        shirts, the amount eligible for duty-free, quota-free 
        treatment is 4.2 million dozen during the 1-year period 
        beginning on October 1, 2000. That amount will be 
        increased by 16 percent, compounded annually, in each 
        succeeding 1-year period through September 30, 2004 and 
        thereafter will be the amount in effect for the period 
        ending on September 30, 2004, or such other amount as 
        may be provided by law. The conference agreement 
        provides that it is the sense of 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 
        provision, the percentage by which the amounts referred 
        to above with respect to knit-to-shape articles and T-
        shirts should be compounded for the one-year periods 
        occurring after the period ending on September 30, 
        2004;
            (4) certain brassieres, subject to the requirements 
        set forth in the Act;
            (5) certain articles assembled from fibers, yarns 
        or fabric not widely available in commercial 
        quantities, with reference to the relevant provisions 
        of the NAFTA; the conference agreement also authorizes 
        the President to extend duty-free and quota-free 
        treatment to certain other fibers, fabrics and yarns. 
        Any interested party may submit to the President a 
        request for extension of benefits to fibers, fabrics 
        and yarns not available. The requesting party will bear 
        the burden of demonstrating that a change is warranted 
        by providing sufficient evidence. The President must 
        make a determination within 60 calendar days of 
        receiving a request from an interested party;
            (6) certain handloomed, handmade and folklore 
        articles; and
            (7) certain textile luggage, as described in the 
        legislation.
      The conference agreement establishes certain special 
rules:
            (1) Findings and trimmings.--Articles otherwise 
        eligible for preferential treatment 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. 
        However, sewing thread shall not be treated as a 
        finding or trimming for purposes of apparel articles 
        cut in a CBTPA beneficiary country from fabric wholly 
        formed in the United States from yarns wholly formed in 
        the United States, where preferential treatment is 
        contingent upon assembly with thread formed in the 
        United States
            (2) Interlinings.--Articles otherwise eligible for 
        preferential treatment shall not be ineligible for such 
        treatment because the articles contain certain 
        interlinings, as described in the legislation, 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 
        articles. This rule will not apply if the President 
        determines that United States manufacturers are 
        producing such interlinings in the United States in 
        commercial quantities;
            (3) De Minimis.--An article otherwise ineligible 
        for preferential treatment because the article contains 
        fibers or yarns not wholly formed in the United States 
        or in 1 or more beneficiary countries shall not be 
        ineligible for such treatment if the total weight of 
        all such fibers or yarns is not more than 7 percent of 
        the total weight of the good. However, in order for an 
        apparel article containing elastomeric yarns to be 
        eligible for preferentialtreatment, such yarns must be 
wholly formed in the United States.
            The conferees agree that offering trade benefits to 
        CBI countries for certain apparel products would be a 
        valuable mechanism to promote long-term economic growth 
        by enhancing the region's opportunities to expand trade 
        with the United States. At the same time, the conferees 
        believe these provisions would promote growth of U.S. 
        exports and the use of U.S. fabric, yarn and cotton.
            (4) Special Origin Rule.--An article otherwise 
        eligible for preferential treatment shall not be 
        ineligible for such treatment because the article 
        contains nylon filament yarn (other than elastomeric 
        yarn), if entered under certain tariff headings 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. The House position 
        would have encompassed these articles. The Senate rule 
        of origin would have precluded eligibility. The Senate 
        recedes.

                   b. Trade Preference Levels (TPLs)

Present law

      Appendix 6(B) of NAFTA provides a limited exception to 
NAFTA rules of origin for textile and apparel goods. The 
exception takes the form of Tariff Preference Levels (TPLs), 
under which specific quantities of goods from each NAFTA 
country that do not meet NAFTA ``yarn-forward'' rules of origin 
will nonetheless be accorded NAFTA preferential tariff rates. 
Imports of such goods that exceed these quantities will be 
subject to Normal Trade Relations (NTR) duty rates. Under 
NAFTA, TPLs are available for three broad categories of 
products: (1) cotton or man-made apparel; (2) wool apparel; 
and, (3) goods entered under subheading 9802.00.80 of the HTS.

House bill

      No provision. But Section 104(2)(B)(i) of H.R. 984, as 
passed by the Committee on Ways and Means authorizes USTR to 
establish TPLs for Caribbean textile and apparel products which 
are similar to those established for Mexican textile and 
apparel products in NAFTA. After consulting with the domestic 
industry and other interested parties, USTR is authorized to 
establish TPLs in the following categories at specified levels: 
not more than 45,000,000 square meter equivalents of cotton or 
man-made fiber apparel; not more 1,500,000 square meter 
equivalents of wool apparel; and, not more than 25,000,000 
square meter equivalents of goods entered under subheading 
9802.00.80 of the HTS.

Senate amendment

      No provision.

Conference agreement

      No provision.

        2. Effective Date and Termination of Temporary Treatment

Present law

      CBI trade benefits were made permanent in 1990.

House bill

      No provision, however under section 104, of H.R. 984 a 
temporary transitional period would begin upon date of 
enactment and end on the date that either NAFTA accession or a 
reciprocal free trade agreement enters into force with the 
partnership country, or on December 31, 2004, whichever is 
earlier.

Senate amendment

      The Senate bill establishes a temporary transitional 
period of 51 months beginning on October 1, 2000, and ending on 
December 31, 2004.

Conference agreement

      The Conference agreement establishes a transition period 
that begins on October 1, 2000 and ends on the earlier of 
September 30, 2008, or the date on which the Free Trade Area of 
the Americas or another free trade agreement as described in 
the legislation enters into force with respect to the United 
States and the CBTPA beneficiary country.

                        3. Designation Criteria

Present law

      In determining whether to designate any country as a CBI 
beneficiary country, the President must take into account 7 
mandatory and 11 discretionary criteria, which are listedin 
section 212 of the CBERA:
            (1) whether the country is a Communist country;
            (2) whether the country has nationalized, 
        expropriated, or otherwise seized ownership or control 
        of U.S. property (including intellectual property), 
        unless he determines that prompt, adequate, and 
        effective compensation has been or is being made, or 
        good faith negotiations to provide such compensation 
        are in progress, or the country is otherwise taking 
        steps to discharge its international obligations, or a 
        dispute over compensation has been submitted to 
        arbitration;
            (3) whether the country fails to act in good faith 
        in recognizing as binding or in enforcing arbitral 
        awards in favor of U.S. citizens;
            (4) whether the country affords ``reverse'' 
        preferences to developed countries and whether such 
        treatment has or is likely to have a significant 
        adverse effect on U.S. commerce;
            (5) whether a government-owned entity in the 
        country engages in the broadcast of copyrighted 
        material belonging to U.S. copyright owners without 
        their express consent or the country fails to work 
        toward the provision of adequate and effective 
        intellectual property rights;
            (6) whether the country is a signatory to an 
        agreement regarding the extradition of U.S. citizens;
            (7) whether the country has or is taking steps to 
        afford internationally recognized worker rights to 
        workers in the country;
            (8) an expression by the country of its desire to 
        be designated;
            (9) the economic conditions in the country, its 
        living standards, and any other appropriate economic 
        factors;
            (10) the extent to which the country has assured 
        the United States it will provide equitable and 
        reasonable access to its markets and basic commodity 
        resources;
            (11) the degree to which the country follows 
        accepted rules of international trade under the World 
        Trade Organization;
            (12) the degree to which the country uses export 
        subsidies or imposes export performance or local 
        content requirements which distort international trade;
            (13) the degree to which the trade policies of the 
        country are contributing to the revitalization of the 
        region;
            (14) the degree to which the country is undertaking 
        self-help measures to protect its own economic 
        development;
            (15) the extent to which the country provides under 
        its law adequate and effective means for foreign 
        nationals to secure, exercise, and enforce exclusive 
        intellectual property rights;
            (16) the extent to which the country prohibits its 
        nationals from engaging in the broadcast of copyrighted 
        material belonging to U.S. copyright owners without 
        their express consent; and
            (17) the extent to which the country is prepared to 
        cooperate with the United States in the administration 
        of the Act.
      Under the CBERA, the President is prohibited from 
designating a country a beneficiary country if any of criteria 
(1)-(7) apply to that country, subject to waiver, if the 
President determines that country designation will be in the 
U.S. national economic or security interest. The waiver does 
not apply to criteria (4) and (6). Criteria (8)-(18) are 
discretionary. Under the CBERA, criteria on (7) is included as 
both mandatory and discretionary.
House bill
      No provision, however H.R. 984, as approved by the 
Committee on Ways and Means, makes no change in country 
designation criteria established in the CBERA.
Senate amendment
      Under the Senate bill, eligibility for the new trade 
benefits is left to the discretion of the President, but the 
proposal would provide specific guidance as to the criteria the 
President should apply in making that determination. The 
starting point under the Senate bill is compliance with the 
eligibility criteria set out in the original CBERA. The Senate 
bill would add certain trade-related criteria, such as the 
extent to which the beneficiary country fully implements the 
various Uruguay Round agreements, whether the beneficiary 
country affords adequate intellectual property protection and 
protection to U.S. investors, and the extent to which the 
country applies internationally accepted rules on 
governmentprocurement and customs valuation.
      This section of the Senate bill also adds other criteria 
that reflect important U.S. initiatives. They include, among 
others, the extent to which the country has become a party to 
and implements the Inter-American Convention Against 
Corruption, is or becomes a party to a convention regarding the 
extradition of its nationals, satisfies the criteria for 
counter-narcotics certification under section 490 of the 
Foreign Assistance Act of 1961, and provides internationally 
recognized worker rights.
Conference agreement
      The conference agreement provides that the President, in 
designating a country as eligible for the enhanced CBTPA 
benefits, shall take into account the existing eligibility 
criteria established under CBERA, as well as other appropriate 
criteria, including whether a country has demonstrated a 
commitment to undertake its WTO obligations and participate in 
negotiations toward the completion of the FTAA or comparable 
trade agreement, the extent to which the country provides 
intellectual property protection consistent with or greater 
than that afforded under the Agreement on Trade-Related Aspects 
of Intellectual Property Rights, the extent to which the 
country provides internationally recognized worker rights, 
whether the country has implemented its commitments to 
eliminate the worst forms of child labor, the extent to which a 
country has taken steps to become a party to and implement the 
Inter-American Convention Against Corruption, and the extent to 
which the country applies transparent, nondiscriminatory and 
competitive procedures in government procurement equivalent to 
those included in the WTO Agreement on Government Procurement 
and otherwise contributes to efforts in international fora to 
develop and implement international rules in transparency in 
government procurement.
      In evaluating a potential beneficiary's compliance with 
its WTO obligations, the conferees expect the President to take 
account of the extent to which the country follows the rules on 
customs valuation set forth in the WTO Customs Valuation 
Agreement. With respect to intellectual property protection, it 
is the intention of the conferees that the President will also 
take into account the extent to which potential beneficiary 
countries are providing or taking steps to provide protection 
of intellectual property rights comparable to the protections 
provided to the United States in bilateral intellectual 
property agreements.
      In evaluating a potential beneficiary's performance with 
respect to the existing eligibility criteria under CBERA, the 
conferees expect that the President will take into account, in 
evaluating a potential beneficiary's performance with respect 
to subsections (b)(2) and (c)(5) of section 212 of CBERA, the 
extent that beneficiary countries are providing or taking steps 
to provide protection of investment and investors comparable to 
the protection provided to the United States in bilateral 
investment treaties. And with respect to evaluating a potential 
beneficiary's performance with respect to subsection (c)(3) of 
CBERA relating to market access, the conferees intend that the 
President shall take into account the extent to which the 
country provides the United States and other WTO members 
nondiscriminatory, equitable, and reasonable market access with 
respect to the products that will receive the enhanced benefits 
provided under the CBTPA.

                     4. General Review of Countries

Present law
      Section 212(f) of the CBERA requires the President to 
submit to the Congress every three years a complete report 
regarding the operation of the CBI program, including the 
results of a general review of beneficiary countries.
House bill
      No provision, however section 104 of H.R. 984 amends 
section 212(f) of the CBERA to provide that the next review 
take place one year after the effective date of H.R. 984 and 
subsequent reviews occur at three year intervals thereafter. 
The bill requires the President to report to Congress on a 
triennial basis regarding the benefits accorded under the terms 
of H.R. 984. The review will be based on the 18 eligibility 
criteria listed in section 212 of the CBERA, as further 
interpreted by the bill. These criteria address such issues as 
intellectual property protection, investment protection, market 
access, worker rights, cooperation in administering the 
program, and the degree to which the country follows accepted 
rules of international trade provided for under the World Trade 
Organization. The President may determine, based on the review, 
whether to withdraw, suspend, or limit new parity benefits. 
Existing authority in the CBERA would continue to withdraw, 
suspend, or limit current benefits at any time based on the 
criteria under existing laws.
Senate amendment
      No provision.
Conference Agreement
      No provision.

                             5. Safeguards

Present law
      The import relief procedures and authorities under 
sections 201-204 of the Trade Act of 1974 apply to imports from 
CBI beneficiary countries, as they do to imports from other 
countries. If CBI imports cause serious injury, or threat of 
such injury, to the domestic industry producing a like or 
directly competitive article, section 213(e) of the CBERA 
authorizes the President to suspend CBI duty-free treatment and 
proclaim a rate of duty or other relief measures.
      Under NAFTA, the United States may invoke a special 
safeguard provision at any time during the tariff phase-out 
period if a NAFTA-origin textile or apparel good is being 
imported in such increased quantities and under such conditions 
as to cause ``serious damage, or actual threat thereof,'' to a 
domestic industry producing a like or directly competitive 
good. The President is authorized to either suspend further 
duty reductions or increase the rate of duty to the NTR rate 
for up to three years. The NAFTA also provides for a 
``quantitative restriction'' safeguard, which the United States 
or Mexico may invoke against ``non-originating'' textile or 
apparel goods, using the standard of ``serious damage, or 
actual threat thereof.''
House bill
      Under H.R. 984, normal safeguard authorities under CBERA 
would apply to imports of all products except textiles and 
apparel. The NAFTA equivalent safeguard authorities would apply 
to imports of textile and apparel products from CBI countries, 
except that, under the bill, the United States, if it applied a 
safeguard action, would not be obligated to provide equivalent 
trade liberalizing compensation to the exporting country.
Senate amendment
      Identical provision except that the Senate bill does not 
provide a ``quantitative restriction'' safeguard.
Conference agreement
      Senate provision.

                6. Termination or Withdrawal of Benefits

Present law
      The President may withdraw or suspend designation of any 
beneficiary country or withdraw, suspend, or limit the 
application of duty-free treatment to any article from any 
country if he determines that, as a result of changed 
circumstances, the country is not meeting criteria set forth in 
the statute for beneficiary country designation. The President 
must publish at least 30-days advance notice of the proposed 
action. The U.S. Trade Representative shall accept written 
public comments and hold a public hearing on the proposed 
action.
House bill
      No provision. But under H.R. 984, all country designation 
criteria apply as under the CBERA. The President may withdraw, 
suspend, or limit the application of duty-free or preferential 
quota treatment to any article if he determines the country or 
the product, based on changed circumstances, should be barred 
from eligibility. The bill makes no change in the President's 
authority to withdraw, suspend, or limit current benefits under 
the CBERA at any time.
Senate amendment
      The Senate bill provides that the President may withdraw 
or suspend the designation of a CBERA beneficiary country or 
withdraw, suspend, or limit duty-free treatment if, as a result 
of changed circumstances, the country no longer satisfies the 
mandatory eligibility criteria or fails adequately to meet one 
or more of the discriminatory criteria.
      The Senate bill also provides that the President may 
withdraw or suspend the designation of CBTEA beneficiary 
country or CBTEA benefits if the President determines that, as 
result of changed circumstances, the country's performance is 
not satisfactory under the CBTEA eligibility criteria.
Conference agreement
      The Conference Agreement merges the House and Senate 
provisions. The Conferees believe that it is appropriate to 
retain broad authority for the President to withdraw, suspend, 
or limit benefits under the CBERA and to provide similar 
authority for the President with respect to the new trade 
benefits under the bill.

         d. customs procedures and penalties for transshipment

Present law
      Under the NAFTA, Parties to the Agreement must observe 
Customs procedures and documentation requirements, which are 
established in Chapter 5 of NAFTA. Requirements regarding 
Certificates of Origin for imports receiving preferential 
tariffs are detailed in Article 502.1 of NAFTA.
House bill
      No provision, but H.R. 984, as approved by the Committee 
on Ways and Means, requires the Secretary of the Treasury to 
prescribe regulations that require, as a condition of entry, 
that any importer of record claiming preferential tariff 
treatment for textile and apparel products under the bill must 
comply with requirements similar in all material respects to 
the requirements regarding Certificates of Origin contained in 
Article 502.1 of NAFTA, for a similar importation from Mexico. 
In addition, if an exporter is determined under the laws of the 
United States to have engaged in illegal transshipment of 
textile or apparel products from a partnership country, then 
the President shall deny all benefits under the bill to such 
exporter, and to any successors of such exporter, for a period 
of 2 years.
      No provision. H.R. 984 requires the Commissioner of 
Customs to conduct a study analyzing the extent to which each 
partnership country has: (1) cooperated with the United States 
in instances of circumvention or alleged circumvention of 
existing quotas on imports of textile and apparel products; and 
(2) has taken appropriate measures consistent with its laws and 
domestic procedures to prevent transshipment and circumvention 
from taking place.
Senate amendment
      The Senate bill provides that if the President determines 
that an exporter has engaged in transshipment with respect to 
textile and apparel products from a beneficiary country, the 
President shall deny all enhanced benefits to such exporter and 
any successor for a period of 2 years. In cases where the 
President has requested a beneficiary country to take action to 
prevent transshipment and the country has failed to do so, the 
President shall reduce the quantities of textile and apparel 
articles that may be imported into the U.S. from that country 
by three times the quantity of articles transshipped.
Conference agreement
      The Conference Agreement merges the House and Senate 
provisions, but clarifies that the President may only ``triple-
charge'' quotas to the extent that such action is consistent 
with WTO rules. The conferees believe these transshipment 
provisions will address concerns that increasing trade with the 
Caribbean Basin region could result in illegal transshipment of 
textile and apparel products through the region.

  F. DUTY-FREE TREATMENT FOR CERTAIN BEVERAGES MADE WITH CARIBBEAN RUM

Present law
      Rum and beverages made with rum are eligible for duty-
free entry into the United States both under the CBI program 
and NAFTA, provided that they meet the CBI or NAFTA rules of 
origin and other requirements. When Caribbean rum is processed 
in Canada into a rum beverage and the beverage is exported from 
Canada into the United States, it is not eligible for duty-free 
treatment under either the CBI or NAFTA. Specifically, the 
beverage is ineligible for duty-free treatment under CBI, 
because it is not shipped directly from a beneficiary country 
to the United States as the CBI rules require. The beverage 
does not qualify for NAFTA duty-free treatment, because the 
processing in Canada is not sufficient to qualify it as a NAFTA 
``originating good.''
House bill
      No provision, however section 106 of H.R. 984, as 
approved by the Committee on Ways and Means, amends the CBERA 
to accord duty-free treatment to certain beverages imported 
from Canada if: (1) the rum is the growth, product, or 
manufacture of a beneficiary country or the U.S. Virgin 
Islands; (2) the rum is imported directly into Canada, and the 
beverages made from it are imported directly from Canada into 
the United States; and (3) the rum accounts for at least 90 
percent by volume of the alcoholic content of the beverages. 
This provision would ensure that certain rum beverages that 
originate in the CBI, but which are processed in Canada, are 
not denied duty-free treatment under the CBERA.
Senate amendment
      No provision.
Conference agreement
      Adopt provisions from H.R. 984.

            G. MEETING OF CARIBBEAN TRADE MINISTERS AND USTR

Present law
      No provision.
House bill
      No provision, however section 107 of H.R. 984, as 
approved by the Committee on Ways and Means directs the 
President to convene a meeting with the trade ministers of CBI 
partnership countries in order to establish a schedule of 
regular meetings, to commence as soon as practicable, of the 
trade ministers and USTR. The purpose of the meetings is to 
advance consultations between the United States and partnership 
countries concerning the likely timing and procedures for 
initiating negotiations for partnership countries to: (1) 
accede to NAFTA; or (2) enter into comprehensive, mutually 
advantageous trade agreements with the United States that 
contain comparable provisions to NAFTA, and would make 
substantial progress in achieving the negotiation objectives 
listed in Section 108(b)(5) of Public Law 103-182. This 
provision is intended to encourage the United States Trade 
Representative to expand efforts to increase trade with 
countries in the Caribbean Basin region.
Senate amendment
      No provision.
Conference agreement
      Adopt provision of H.R. 984, with minor amendments.

                   TITLE III--NORMAL TRADE RELATIONS

         Sec. 301. Permanent Normal Trade Relations for Albania

Present law
      Albania's trade status is currently governed by title IV 
of the Trade Act of 1974, as amended by the Customs and Trade 
Act of 1990 (title IV). Section 402 of title IV (also known as 
the Jackson-Vanik amendment) sets forth requirements relating 
to freedom of emigration, which must be met or waived by the 
President in order for the President to grant nondiscriminatory 
normal trade relations (NTR) status to non-market economy 
countries. Title IV also requires that a trade agreement remain 
in force between the United States and a non-market economy 
country receiving NTR status and sets forth minimum provisions 
which must be included in such agreement.
      Albania, which was first granted NTR status in 1992, was 
found to be in full compliance with the Jackson-Vanik freedom 
of emigration requirements on December 5, 1997. Since then, NTR 
has been granted to Albania subject to semiannual review and 
disapproval by a Joint Resolution of Congress.
House bill
      No provision.
Senate amendment
      Section 701 of the Senate amendment authorizes the 
President to determine that title IV should no longer apply to 
Albania and to proclaim permanent normal trade relations (PNTR) 
for Albania. Application of title IV shall terminate with 
respect to Albania on the effective date of the President's 
extension of PNTR.
Conference agreement
      The House recedes to the Senate.
      The conferees note that Albania has concluded a bilateral 
investment treaty with the United States and been very 
cooperative with NATO and the international community during 
and after the Kosova crisis. Albania is also currently 
negotiating to join the World Trade Organization.

      Sec. 302. Permanent Normal Trading Relations for Kyrgyzstan

Present law
      Kyrgyzstan's NTR status is currently governed by title IV 
of the Trade Act of 1974, as amended by the Customs and Trade 
Act of 1990 (title IV). Section 402 of title IV (also known as 
the Jackson-Vanik amendment) sets forth requirements relating 
to freedom of emigration, which must be met or waived by the 
President in order for the President to grant nondiscriminatory 
normal trade relations (NTR) status to non-market economy 
countries. Title IV also requires that a trade agreement remain 
in force between the United States and a non-market-economy 
country receiving NTR status and sets forth minimum provisions 
which must be included in such agreement.
      Kyrgyzstan, which was granted NTR in 1992, was found to 
be in full compliance with the Jackson-Vanik freedom of 
emigration requirements on December 5, 1997. Since then, NTR 
has been granted to Kyrgyzstan subject to semiannual review, 
and disapproval by a Joint Resolution of Congress.
      Kyrgyzstan joined the World Trade Organization (WTO) on 
December 20, 1998, and the United States was forced to invoke 
Article XIII of the Agreement Establishing the World Trade 
Organization, which allows the United States to withhold 
application of the WTO Agreements with respect to Kyrgyzstan 
until the United States extends it permanent normal trade 
relations status.
House bill
      No provision.
Senate amendment
      Section 702 of the Senate amendment authorizes the 
President to determine that title IV should no longer apply to 
Kyrgyzstan and to proclaim PNTR for Kyrgyzstan. Application of 
title IV shall terminate with respect to Kyrgyzstan on the 
effective date of the President's extension of PNTR.
Conference agreement
      The House recedes to the Senate.
      The conferees recognize that title IV of the Trade Act of 
1974 has promoted the right to emigrate. Since the dissolution 
of the Soviet Union, minority groups have secured the return of 
communal properties confiscated during the Soviet period, 
thereby facilitating the reemergence of communal organizations 
and participation in domestic affairs. Based upon the report on 
compliance with title IV, the conferees conclude that 
Kyrgyzstan is in compliance with the emigration provisions of 
title IV and should be graduated from title IV, thereby 
permitting the extension of permanent normal trade relations to 
Kyrgyzstan.
      With respect to national minorities, the conferees note 
that the member states of the Organization for Security and 
Cooperation in Europe (OSCE), including the former USSR and its 
successor states, have committed to ``adopt, where necessary, 
special measures for the purpose of ensuring to persons 
belonging to national minorities full equality . . . 
individually as well as in community with other members of 
their group.''
      The conferees note that Kyrgyzstan is the first former 
Soviet state to be graduated from Jackson-Vanik and expect that 
the graduation of other successor states to the former Soviet 
Union will be contingent upon a thorough public assessment of 
their laws and policies regarding emigration.

                    TITLE IV--OTHER TRADE PROVISIONS

                 Sec. 401. Report on Employment and TAA

Present law
      Title II of the Trade Act of 1974, as amended, authorizes 
three trade adjustment assistance (TAA) programs for the 
purpose of providing assistance to individual workers and firms 
that are adversely affected by import competition. Those 
programs are: the general TAA program for workers, which 
provides training and income support for workers adversely 
affected by import competition; the TAA program for firms, 
which provides technical assistance to qualifying firms; and 
the North American Free Trade Agreement Act (NAFTA) 
transitional adjustment assistance program which provides 
training and income support for workers who may be adversely 
impacted by imports from or production shifts to Canada and/or 
Mexico.
House bill
      No provision.
Senate amendment
      Section 703 of the Senate amendment requires GAO to 
submit a report to Congress within 9 months after the date of 
enactment offering specific data and recommendations concerning 
the effectiveness and efficiency of inter-agency and federal-
state coordination of a number of worker training programs, 
including the general TAA program for workers, the NAFTA 
Transitional Adjustment Assistance program, the Workforce 
Investment Act of 1998 and the federal unemployment insurance 
program. GAO would be required to examine the compatibility of 
the existing worker retraining/compensation programs, the 
effects of foreign trade and shifts in production on workers in 
the United States and the impact that the trade effects and 
production shifts have had on ``secondary'' workers, i.e., 
those whose jobs are affected indirectly by import competition 
because their customers were adversely affected by imports or 
production shifts. The amendment responds to the concern that 
there are conflicting requirements in the worker retraining 
programs, including eligibility requirements and the benefits 
available. It also aims at establishing an objective assessment 
of the impact of imports and production shifts on job loss in 
theUnited States.
Conference agreement
      The House recedes to the Senate.

                 sec. 402. trade adjustment assistance

Present law
      Title II of the Trade Act of 1974, as amended, authorizes 
three trade adjustment assistance (TAA) programs for the 
purpose of providing assistance to individual workers and firms 
that are adversely affected by import competition. Those 
programs are: the general TAA program for workers, which 
provides training and income support for workers adversely 
affected by import competition; the TAA program for firms, 
which provides technical assistance to qualifying firms; and 
the North American Free Trade Agreement Act (NAFTA) 
transitional adjustment assistance program which provides 
training and income support for workers who may be adversely 
impacted by imports from or production shifts to Canada and/or 
Mexico. Under the general TAA program for workers, a worker 
must be certified by the Secretary of Labor as eligible for 
benefits before applying for the assistance. A worker is not 
eligible for benefits, however, if they have applied for such 
assistance after the expiration of the 2-year period beginning 
with the worker's initial certification for benefits by the 
Secretary of Labor.
House bill
      No provision.
Senate amendment
      Section 704 of the Senate amendment provides that a group 
of workers who will lose their jobs at a nuclear power plant in 
Oregon that is closing would be eligible for TAA benefits, 
notwithstanding the fact that their original eligibility for 
TAA benefits, as determined by the Labor Department, expired 
more than two years ago. In 1993, the Department of Labor 
certified workers at a nuclear power plant near Portland, 
Oregon, as eligible for TAA benefits as a result of increased 
competition from imports of electricity from British Columbia. 
The plant was slated to be shut down and has been going through 
the decommissioning process since that time. Because of the 
length of time it takes to decommission a nuclear power plant, 
a number of workers kept their jobs for several years and would 
otherwise be ineligible for TAA benefits because of the 
expiration of the initial certification. This provision would 
reinstate their eligibility for TAA.
Conference agreement
      The House recedes to the Senate.

       sec. 403. reliquidation of certain nuclear fuel assemblies

Present law
      Nuclear fuel rods containing fuel elements are 
classifiable under Harmonized Tariff System (HTS) subheading 
8401.30.00, which provides for ``fuel elements (cartridges), 
non-irradiated, and parts thereof.'' Prior to the adoption of 
the HTS in 1989, these fuel elements were classifiable in a 
separate duty free provision under the Tariff Schedules of the 
United States Annotated (TSUSA).
House bill
      No provision.
Senate amendment
      Section 708 authorizes the Secretary of the Treasury, 
upon a proper request filed no later than 90 days after the 
enactment of the Act, to reliquidate as free of duty five 
identified entries of nuclear fuel assemblies, and refund 
duties paid on each identified entry, including duties paid on 
October 4, 1994, referenced in Customs Service Collection 
Receipt Number 527006753.
Conference agreement
      The House recedes to the Senate, with an amendment to 
correct a date of entry.

     Sec. 404. reports to the finance and ways and means committees

Present law
      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) (112 Stat. 2681-224) 
directs the Administration to report to certain Congressional 
Committees on various issues. Among these were a certification 
by the Treasury Secretary and the Chairman of the Federal 
Reserve Board that the International Monetary Fund is requiring 
borrowers to liberalize restrictions on trade in goods and 
services, consistent with the terms of allinternational trade 
agreements of which the borrowing country is a signatory. The Secretary 
of the Treasury is also directed to periodically report on the progress 
of efforts to reform the architecture of the international monetary 
system, with a focus on minimizing disruptions in patterns of trade.
      Section 1704(b) of the International Financial 
Institutions Act (22 U.S.C. 262r-3(b)) requires the Secretary 
of the Treasury to report to certain Congressional Committees 
semiannually on financial stabilization programs led by the IMF 
in connection with financing from the Exchange Stabilization 
Fund. The reports are to include a description of the degree to 
which recipient countries are ensuring that no government 
subsidies or tax privileges will be provided to bail out 
individual corporations, particularly in the semiconductor, 
steel, and paper industries. Also, the report is to include a 
description of the trade policies of the countries involved, 
including any unfair trade practices or adverse effects of the 
trade policies on the U.S.
      Section 1705(a) of the International Financial 
Institutions Act (22 U.S.C. 262r-5(a)) requires the Secretary 
of the Treasury to report to certain Congressional committees 
annually on the state of the international financial system.
      Section 1706(a) of the International Financial 
Institutions Act (22 U.S.C. 262r-5(a)) requires the Comptroller 
General to report to certain Congressional committees on the 
trade policies of IMF borrower countries.
      Section 629 of the Treasury and General Government 
Appropriations Act, 1999 requires the Administration to report 
to certain Congressional committees on the protection of United 
States borders against drug traffic.
      Although each of these reports is required to address 
international trade issues, none are specifically directed to 
the Senate Finance or House Ways and Means Committees.
House bill
      No provision.
Senate amendment
      Sec. 710 of the Senate amendment includes the Finance and 
Ways and Means Committees among those Congressional Committees 
receiving the certifications and reports on international trade 
and international economic issues which are otherwise mandated 
by section 607 of the Foreign Operations, Export Financing, and 
Related Appropriations Act, 1999 (Pub. L. 105-277; 112 Stat. 
2681-224); section 1704(b) of the International Financial 
Institutions Act (22 U.S.C. 262r-3(b)); section 1705(a) of the 
International Financial Institutions Act (22 U.S.C. 262r-5(a)); 
section 1706(a) of the International Financial Institutions Act 
(22 U.S.C. 262r-5(a)); section 629 of the Treasury and General 
Government Appropriations Act, 1999.
Conference agreement
      The House recedes to the Senate.

sec. 405. clarification of section 334 of the uruguay round agreements 
                                  act

Present law
      Section 334 of the Uruguay Round Agreements Act (URAA) 
(P.L. 103-465) (1994), commonly referred to as the Breaux-
Cardin rules of origin for textile and apparel, directed the 
Secretary of the Treasury to prescribe rules for determining 
the origin of textile and apparel products. Under those new 
rules, fabrics and certain products (such as scarves and 
handkerchiefs) derive their origin in the country where the 
fabric is woven or knitted (notwithstanding any further 
processing such as dyeing and printing). In addition, the 
country of origin of any other textile or apparel product is 
the country in which the textile or apparel product is wholly 
assembled. Under the multicountry rule, origin is conferred in 
the country in which the most important assembly or 
manufacturing process occurs, or if origin cannot be determined 
in this manner, origin is conferred in the last country in 
which important assembly or manufacturing occurs.
House bill
      No provision.
Senate amendment
      Section 711 would reinstate the rules of origin that 
existed prior to URAA for certain products. Specifically, the 
amendment would confer origin as the country in which dyeing, 
printing, and two or more finishing operations were done on 
fabrics classified under the HTS as of silk, cotton, man-made, 
and vegetable fibers. This rule would also apply to various 
products classified in 18 identified HTS subheadings (mostly 
flat products) except for goods made from cotton, wool, or 
fiber blends containing 16 percent or more of cotton.
Conference agreement
      The House recedes to the Senate.
      Prior to the Breaux-Cardin enactment, the rules of origin 
permitted the processes of dyeing and printing to confer origin 
when accompanied by two or more finishing operations for 
certain products. Under the new regulations prescribed by the 
Secretary of the Treasury, certain fabrics, silk handkerchiefs 
and scarves were considered to originate where the base fabric 
was knit and woven, notwithstanding any further processing.
      In May 1997, the European Union (EU) requested 
consultations in the World Trade Organization (WTO) with the 
United States, charging that the changes to the rules of origin 
made by URAA violated United States obligations under a number 
of agreements: the Agreement on Textiles and Clothing, the 
Agreement on Rules of Origin, the Agreement on Technical 
Barriers to Trade, and the General Agreement on Tariffs and 
Trade. A number of countries requested third-party 
participation in the dispute. A ``process-verbal'' was 
concluded between the two countries in July 1997, which was 
later amended. Formal consultations were held in January 1999.
      In August 1999, the United States and the EU agreed to 
settle the dispute. A second ``process-verbal'' concluded 
between the two countries obligates the U.S. Administration to 
submit legislation which, as described above, amends the rule-
of-origin requirements in section 334 of the URAA in order to 
allow dyeing, printing, and two or more finishing operations to 
confer origin on certain fabrics and goods. In particular, this 
dyeing and printing rule would apply to fabrics classified 
under the Harmonized Tariff Schedule (HTS) as silk, cotton, 
man-made, and vegetable fibers. The rule would also apply to 
the various products classified in 18 specific subheadings of 
the HTS listed in the bill, except for goods made from cotton, 
wool, or fiber blends containing 16 percent or more of cotton.

                sec. 406. chief agricultural negotiator

Present law
      Currently, a special Trade Negotiator with the rank of 
Ambassador serves as the Chief Negotiator for agricultural 
trade in the Office of the United States Trade Representative. 
The position is not established in statute.
House bill
      No provision.
Senate amendment
      Section 712 amends section 141 of the Trade Act of 1974 
((19 U.S.C.) 2171) to establish in statute within the Office of 
the United States Trade Representative a Chief Agricultural 
Negotiator with the rank of Ambassador 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.
      The principal function of the Chief Agricultural 
Negotiator shall be to conduct trade negotiations, enforce 
trade agreements relating to United States agricultural 
products and service, and be a vigorous advocate on behalf of 
United States agricultural interests.
Conference agreement
      The House recedes to the Senate.

    sec. 407. revision of retaliation list or other remedial action

Present law
      No provision.
House bill
      No provision.
Senate amendment
      Section 713 of the Senate amendment amends the Trade Act 
of 1974 to require the United States Trade Representative 
(USTR) to make periodic revisions of retaliation lists 120 days 
from the date the retaliation list is made and every 180 days 
thereafter. The purpose of this provision is to facilitate 
efforts by the USTR to enforce the rights of the United States 
in instances where another World Trade Organization (WTO) 
member fails to comply with the results of a dispute settlement 
proceeding.
Conference agreement
      The House recedes to the Senate. The conferees added 
language that requires the USTR to include on any retaliation 
list reciprocal goods of the industries affected by the failure 
of the World Trade Organization member to implement the 
decision of the WTO. This new provision does not apply when the 
preliminary or initial retaliation list does not include any 
reciprocal goods of the industries affected.
      The conferees are of the view that compliance with 
dispute settlement panel and Appellate Body decisions is 
essential to the successful operation of the WTO. This 
objective has been threatened by non-compliance in some recent 
cases brought by the United States--particularly in disputes 
with the European Union involving beef and bananas.
      It is the view of the Conferees that this provision 
affirms authority already available to the U.S. Trade 
Representative under the Trade Act of 1974. It is further the 
view of the conferees that this provision is consistent with 
the United States international obligations under the Dispute 
Settlement Understanding of the WTO, and that the USTR would 
retain ample discretion and authority to ensure that 
retaliation implemented by the United States remained within 
the levels authorized by the WTO. As the provision makes clear, 
actions taken by the USTR are intended to be structured 
carefully and to effectuate substantial changes that will 
maximize the likelihood of compliance by the losing member. The 
Ways and Means and Finance Committees will monitor those 
actions to ensure that changes are made consistent with that 
intention.
      With regard to pending cases in which the United States 
has taken retaliatory measures, and in which the initial 
timetable for action laid out in the provision has already 
passed, the conferees expect that the USTR will undertake the 
initial action required by the provision no later than 30 days 
after the enactment of the law, and will undertake any 
subsequently required action every 180 days thereafter. It is 
also the sense of the conferees that USTR should vigorously 
defend the authority granted under the statute with its trading 
partners.

      Sec. 408. Report on TAA for Agricultural Commodity Producers

Present law
      Title II of the Trade Act of 1974, as amended, authorizes 
three trade adjustment assistance (TAA) programs for the 
purpose of providing assistance to individual workers and firms 
that are adversely affected by import competition. Those 
programs are: the general TAA program for workers, which 
provides training and income support for workers adversely 
affected by import competition; the TAA program for firms, 
which provides technical assistance to qualifying firms; and 
the North American Free Trade Agreement Act (NAFTA) 
transitional adjustment assistance program which provides 
training and income support for workers who may be adversely 
impacted by imports from or production shifts to Canada and/or 
Mexico.
House bill
      No provision.
Senate amendment
      Section 715 of the Senate amendment requires that the 
Secretary of Labor, not later than 4 months after enactment of 
the provision and in consultation with the Secretary of 
Agriculture and 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 examines 
the applicability to farmers of trade adjustment assistance 
programs under title II of the Trade Act of 1974. The report 
will also set forth recommendations to improve the operation of 
those programs as they apply to farmers or to establish a new 
trade adjustment assistance program for farmers.
Conference agreement
      The House recedes to the Senate.

 sec. 409. agriculture trade negotiating objectives and consultations 
                             with congress

Present law
      No provision.
House bill
      No provision.
Senate amendment
      Section 723 of the Senate amendment consists of three 
sections. The first section lists findings of the Congress. The 
second section contains the specific agricultural negotiating 
objectives of the United States for the World Trade 
Organization's agriculture negotiations mandated by the Uruguay 
Round. The third section mandates consultations with Congress 
at specific points during the negotiations.
Conference agreement
      The House recedes to the Senate.

      Sec. 410. Entry Procedures for Foreign Trade Zone Operations

Present law
      Section 484 of the Tariff Act of 1930 (19 U.S.C. 1484) 
sets forth the procedures for the entry of merchandise imported 
into the United States. Under section 484, the Customs Service 
has permitted a limited weekly entry procedure for foreign 
trade zones (FTZ) since May 12, 1986 (as authorized by T.D. 86-
16, 51 Fed. Reg. 5040). This procedure has been limited to 
merchandise which is manufactured or changed into its final 
form just prior to its transfer from the zone. Section 637 of 
the Customs Modernization Act (included as title VI of the 
North American Free Trade Agreement Implementation Act, Pub. L. 
103-182, 107 Stat. 2057) provided the Customs Service with 
additional statutory support for the weekly entry procedure.
House bill
      No provision.
Senate amendment
      Sec. 302 of the Senate amendment amends Section 484 of 
the Tariff Act of 1930 (19 U.S.C. 1484) to allow merchandise 
withdrawn from a foreign-trade zone during a week (i.e., any 7 
calendar day period) to be the subject of a single entry, at 
the option of the zone operator or user. Such an entry is 
treated under the new provision as a single entry or release of 
merchandise for purposes of assessment of the merchandise 
processing fee of 19 U.S.C. 8c(a)(9)(A) and thus may not be 
assessed such fee in excess of the fee limitations provided for 
under 19 U.S.C. 58c(b)(8)(A)(i). All other pertinent exceptions 
and exclusions from the merchandise processing fee would also 
apply, as appropriate. The amendment establishes a new section 
19 U.S.C. 1484(a)(3). The provision is self executing and 
accordingly does not require the issuance of implementing 
regulations by the Secretary of the Treasury in order for it to 
go into effect.
      The net effect of the provision is to require Customs to 
expand the weekly entry system (which currently is only 
available to certain manufactured goods) to permit FTZ 
operators and users to use a weekly entry system, under certain 
limitations, if they so choose. This expanded procedure allows 
for goods stored in a FTZ for the purpose of warehouse and 
distribution to be removed from the zone under a weekly Customs 
entry process. This provision would also mean that the 
merchandise processing fee (MPF) that Customs collects would be 
collected on the basis of that single weekly entry at the same 
rate applicable to any other single entry of such merchandise 
into the Customs territory of the United States.
Conference agreement
      The House recedes to the Senate.
      While the Customs Service issued proposed regulations to 
expand the weekly entry system (62 Fed. Reg. 12129, March 14, 
1997) consistent with Congress' intent as set out in the 
Customs Modernization Act, those regulations were never 
finalized. The conferees intend the new provision to remedy 
that failure by requiring such treatment as a matter of law.
      The new provision is not intended to qualify, limit or 
restrict any foreign-trade zone weekly entry procedures now in 
effect. Rather, it is intended to broaden the availability of 
weekly entry procedures to all zones, including general purpose 
zones and special purpose subzones, and to all zone operations 
and processes authorized by law. Consistent with the Foreign 
Trade Zones Act, the new procedure is available for merchandise 
of every description, except such as is prohibited by law, 
regardless of whether such merchandise is of the same class, 
type or category or of different classes, types, and 
categories.
      The conferees are mindful of the revenue impact of this 
expanded procedure, but the conferees also believe that, 
consistent with the notion of a user fee, the MPF is not a 
revenue raiser for Customs expenses, but instead is intended to 
cover the cost of the service U.S. Customs provides.
      The conferees also believe that the Customs Service pilot 
procedure to expand the weekly entry filing procedures to 
activities other than manufacturing operations is consistent 
with Congress' intent relating to periodic entry for weekly 
entries formerchandise from general purpose foreign trade 
zones, as set out in the Mod Act. Section 637 of the Mod Act, which 
amended 19 U.S.C. 1484 concerning the entry of merchandise generally, 
among other things, provides further statutory support for the weekly 
entry procedure. Part 1, page 136 of the Ways and Means NAFTA 
Implementation Act Report (103-361) reflects the intent of Congress. 
The report states, ``in developing the regulations for periodic entry, 
the Committee intends that Customs will allow for weekly and monthly 
entries for merchandise shipments from general purpose foreign trade 
zones and subzones.''

       Sec. 411. Goods Made With Forced or Indentured Child Labor

Present law
      Section 307 of the Tariff Act of 1930 prohibits the 
importation of articles made by convict labor or/and forced 
labor or/and indentured labor under penal sanctions.
House bill
      No provision.
Senate amendment
      Section 707 of the Senate bill amends section 307 of the 
Tariff Act of 1930 to clarify that the ban on articles made 
with forced or/and indentured labor includes those articles 
made with forced or/and indentured child labor.
Conference agreement
      The House recedes to Senate.

                  Sec. 412. Worst Forms of Child Labor

Present law
      No provision.
House bill
      No provision.
Senate amendment
      Section 722 provides that no benefits under the Act (with 
respect to the provisions covering sub-Saharan Africa, CBI, or 
GSP) shall be granted to countries that fail to meet and 
effectively enforce the standards established by ILO Convention 
No. 182 on the Worst Forms of Child Labor.
Conference agreement
      The conference agreement adds a new eligibility criterion 
to the Generalized System of Preferences so that the President 
shall not designate a country for benefits if it has not 
implemented its obligations to eliminate the worst forms of 
child labor. The conference agreement adopts the GSP program's 
standard for purposes of the eligibility criteria applicable to 
the additional trade benefits extended to African beneficiary 
countries. The conferees intend that the GSP standard, 
including the provision with respect to implementation of 
obligations to eliminate the worst forms of child labor, apply 
to eligibility for those additional benefits.
      The conferees note the tremendous progress on the 
elimination of the worst forms of child labor accomplished in 
the International Labor Organization through the unanimous 
approval of ILO Convention No. 182. The conferees believe that 
the practices described in the Convention, as agreed by all ILO 
members, represent heinous activities that should not be 
tolerated. For this reason the conferees are willing for the 
first time to include an eligibility criterion relating to 
whether a country has implemented its obligations to eliminate 
the worst forms of child labor. The conferees recognize that 
the convention represents the international standard on the 
worst forms of child labor and have accordingly defined the 
worst forms of child labor using the definition in ILO 
Convention No. 182.
      It is the expectation of the conferees that the 
beneficiaries of the Africa, CBI and GSP programs will join the 
United States in ratifying ILO Convention No. 182 as soon as 
possible and promptly come into compliance with the procedural 
requirements of that convention including the submission to the 
ILO of the National Action Plans required by the convention, 
the designation of a competent authority responsible for the 
implementation of the convention and the submission of annual 
reports to the ILO identifying steps taken to implement the 
provisions of the convention.
      In determining whether a country is complying with the 
terms of section 502(b)(2)(G) with respect to GSP (and related 
provisions with respect to benefits for sub-Saharan Africa), 
the conferees intend that the President consider (1) whether 
the country has adequate laws and regulations proscribing the 
worst forms of child labor; (2) whether the country has 
adequate laws and regulations for the implementation and 
enforcement of such measures; (3) whether the country has 
established formal institutional mechanisms to investigate and 
address complaints relating to allegations of the worst forms 
of child labor; (4) whether social programs exist in the 
country to prevent the engagement of children in the worst 
forms of child labor, and to assist with the removal of 
children engaged in the worst forms of child labor; (5) whether 
the country has a comprehensive policy for the elimination of 
the worst forms of child labor; and (6) whether the country is 
making continual progress toward eliminating the worst forms of 
child labor.
      The conferees intend that the phrase ``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'' be 
defined as provided in Article II of Recommendation No. 190, 
which accompanies ILO Convention No. 182. Accordingly, work 
that is ``likely to harm the health, safety or morals of 
children'' includes work that exposes children to physical, 
psychological, or sexual abuse; work underground, under water, 
at dangerous heights or in confined spaces; work with dangerous 
machinery, equipment or tools, or work under circumstances 
which involve the manual handling or transport of heavy loads; 
work in an unhealthy environment that exposes children to 
hazardous substances, agents or processes, or to temperatures, 
noise levels, or vibrations damaging to their health; and work 
under particularly difficult conditions such as for long hours, 
during the night or under conditions where children are 
unreasonably confined to the premises of the employer.
      The conferees further intend that the phrase ``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'' be interpreted in a manner consistent with the 
intent of Article 4 of ILO Convention No. 182, which states 
that such work shall be determined by national laws or 
regulations or by the competent authority in the country 
involved. In addition, the conferees intend that the phrase 
generally not apply to situations in which children work for 
their parents on bona fide family farms or holdings.
      The conferees expect that the Secretary of Labor, in 
preparing the report required under section 504, will invite 
public comment to assist in the preparation of his or her 
findings to be incorporated in each annual report. The 
conferees expect that the President, in making determinations 
under section 504(d) with respect to the withdrawal, suspension 
or limitation of benefits, will take into account the findings 
of the Secretary of Labor.

               TITLE V--IMPORTS OF CERTAIN WOOL ARTICLES

Present law
      Under current law, worsted wool fabric imported into the 
United States is subject to tariffs of 29.4 percent, whereas 
apparel articles made from such fabric, such as men's suits, 
may be imported at a tariff rate of 19.3 percent. By applying a 
higher tariff to the input product, the tariff schedule 
provides an incentive for the importation of the more-labor 
intensive and higher-value-added apparel item. That inversion 
has been compounded by the reduction of tariffs applicable to 
men's wool suits under U.S. free trade agreements, with the 
effect that U.S. suit-makers face a still more considerable 
competitive disadvantage relative to imports of suits from 
Canada and Mexico because the difference in tariffs applicable 
to worsted wool fabric relative to the zero rate of duty paid 
on imports of suits is the full 19.3 percent of the tariff 
applicable to fabric imported by such manufacturers.
House bill
      No provision.
Senate amendment
      Section 721 of the Senate amendment expresses the sense 
of the Senate that United States trade policy should, taking 
into account the conditions among U.S. producers, place a 
priority on the elimination of tariff inversions that undermine 
the competitiveness of United States consuming industries.
Conference agreement
      The conferees agree to reduce tariffs on worsted wool 
fabric intended for use in the manufacture of men's suits, 
suit-type jackets, and trousers in order to limit the tariff 
inversion U.S. suit-makers face in the purchase of such fabric. 
For worsted wool fabric containing greater than or equal to 85 
percent wool intended for use in the suit market made from 
fiber averaging 18.5 micron or less in diameter, the applicable 
tariff would be reduced from the current U.S. rate on such 
fabric to a level equivalent to the current Canadian ``most 
favored nation'' (``MFN'') rate applicable to imports of such 
fabric, to a quantity equaling 1.5 million square meter 
equivalents each year. For worsted wool fabric of the type used 
in the manufacture of men's suits made from fiber greater than 
18.5 micron, the applicable tariff would be reduced from the 
current U.S. rate on such fabric to the current U.S. rate on 
worsted wool suit-type jackets, up to a quantity equaling 2.5 
million square meterequivalents each year. The conference 
agreement suspends the current U.S. tariff on worsted wool yarn 
containing greater than or equal to 85 percent wool of average fiber 
diameter of 18.5 micron or finer and on wool fiber and wool top made 
from wool fiber of an average diameter of 18.5 micron and finer from 
the current U.S. normal trade relations (NTR) rate to zero.
      The conference agreement also authorizes the President to 
grant additional tariff relief on wool fabric of up to 1 
million square meter equivalents per year for worsted wool 
fabric from fiber of 18.5 micron and finer and up to 1 million 
square meter equivalents per year for worsted wool fabric from 
fiber greater than 18.5 micron. Expanding the quantity of 
fabric to which the tariff reductions would apply would depend 
each year on the President's determination with respect to 
then-current market conditions in the United States markets for 
suits, fabric, yarn and fiber. In particular, the President 
should focus on growth in production and the relative 
competitiveness and health of both the suit-making and fabric 
manufacturing industries in the United States.
      Under the conference agreement, the President is obliged 
to monitor market conditions in the United States and, toward 
that end, establish statistical suffixes in the Harmonized 
Tariff Schedule sufficient for the collection of certain data 
on imports of worsted wool fabric and apparel. The President 
has residual authority to reduce the applicable tariffs on 
imports of worsted wool fabric in order to take into account 
any staged reductions in the U.S. tariff rate applicable to 
worsted wool suits and the Canadian tariff rate applicable to 
worsted wool fabric that serve as benchmark rates under the 
conference report.
      The conference report requires the President or his or 
her designee to allocate the available tariff relief on worsted 
wool fabric among manufacturers of the apparel items identified 
in the agreement based on historical production. The same 
principle would apply to the President's allocation of other 
tariff relief provided under these provisions of the conference 
agreement.
      The conference agreement also provides for the refund of 
certain duties in each of three succeeding years on imports of 
worsted wool fabric used in men's and boys' suits, suit-type 
jackets and trousers, worsted wool yarn, wool fiber and wool 
top. In each instance, a U.S. manufacturer of a downstream 
product would be eligible for a refund of duties currently paid 
on certain inputs up to an amount that is one-third of the 
duties actually paid by such importing U.S. manufacturer on 
such items in calendar year 1999. In the case of worsted wool 
fabric, for example, a U.S. suit-maker would be eligible to 
claim a refund during calendar year 2000 for one-third of the 
duties paid on such fabric during calendar year 1999. The same 
refund schedule applies to a fabric-maker's importation of wool 
yarn, wool fiber, and wool top.
      The conference agreement creates a fund for research and 
market development for American wool-growers that would assist 
in disseminating information that would help the industry 
improve the quality of the fiber provided and its production 
methods. The conference report sets aside duties collected 
under the HTS chapter relating to the products covered by these 
provisions--wool fiber and top and worsted wool yarn and fabric 
up to an amount of $2.25 million per year in each fiscal year 
from 2000-2003. It is the intent of the conferees that the 
United States Department of Agriculture shall designate an 
experienced cooperator such as the American Wool Council as the 
trust fund's representative for the purposes of this provision.
      The conferees direct the President to determine what 
mechanisms are available under the North American Free Trade 
Agreement (NAFTA), the World Trade Organization and U.S. 
domestic law to alleviate the serious injury to the U.S. wool 
suit and fabric industries as a result of the Canadian wool 
tariff preference level under the NAFTA. The President shall 
recommend that the U.S. Trade Representative undertake the 
appropriate steps necessary to help remedy the adverse effect 
on this sector's competitiveness, and shall report his 
recommendations to the Committee on Ways and Means of the House 
of Representatives and the Senate Committee on Finance by 
January 1, 2001.

                      TITLE VI--REVENUE PROVISIONS

A. Limitation on the Use of Non-Accrual Experience Method of Accounting

(sec. 21 of the House bill, sec. 504 of the Senate amendment, and sec. 
                            448 of the Code)

Present law
      An accrual method taxpayer generally must recognize 
income when all the events have occurred that fix the right to 
receive the income and the amount of the income can be 
determined with reasonable accuracy. An accrual method taxpayer 
may deduct the amount of any receivable that was previously 
included in income that becomes worthless during the year.
      Accrual method taxpayers are not required to include in 
income amounts to be received for the performance of services 
which, on the basis of experience, will not be collected (the 
``non-accrual experience method''). The availability of this 
method is conditioned on the taxpayer not charging interest or 
a penalty for failure to timely pay the amount charged. The 
Secretary of the Treasury has published temporary regulations 
\1\ requiring the use of a formula comparing receivables not 
collected to total receivables earned during the testing period 
in determining the portion of the amount which, on the basis of 
experience, will not be collected. The temporary regulations 
provide that no other method or formula may be used by a 
taxpayer in determining the uncollectible amounts under this 
subsection.
---------------------------------------------------------------------------
    \1\ Treas. Reg. sec. 1.448-2T.
---------------------------------------------------------------------------
      A cash method taxpayer is not required to include an 
amount in income until it is received. A taxpayer generally may 
not use the cash method if purchase, production, or sale of 
merchandise is an income producing factor. Such taxpayers 
generally are required to keep inventories and use an accrual 
method of accounting. In addition, corporations (and 
partnerships with corporate partners) generally may not use the 
cash method of accounting if their average annual gross 
receipts exceed $5 million. An exception to this $5 million 
rule is provided for qualified personal service corporations. A 
qualified personal service corporation is a corporation (1) 
substantially all of whose activities involve the performance 
of services in the fields of health, law, engineering, 
architecture, accounting, actuarial science, performing arts or 
consulting and (2) substantially all of the stock of which is 
owned by current or former employees performing such services, 
their estates or heirs. Qualified personal service corporations 
are allowed to use the cash method without regard to whether 
their average annual gross receipts exceed $5 million.
House bill
      The House bill provides that the non-accrual experience 
method will be available only for amounts to be received for 
the performance of qualified personal services. Amounts to be 
received for the performance of all other services will be 
subject to the general rule regarding inclusion in income. 
Qualified personal services are personal services in the fields 
of health, law, engineering, architecture, accounting, 
actuarial science, performing arts or consulting. As under 
present law, the availability of the method is conditioned on 
the taxpayer not charging interest or a penalty for failure to 
timely pay the amount.
      Effective date.--The provision of the House bill is 
effective for taxable years ending after the date of enactment. 
Any change in the taxpayer's method of accounting necessitated 
as a result of the proposal will be treated as a voluntary 
change initiated by the taxpayer with the consent of the 
Secretary of the Treasury. Any required section 481(a) 
adjustment is to be taken into account over a period not to 
exceed four years under principles consistent with those in 
Rev. Proc. 99-49.\2\
---------------------------------------------------------------------------
    \2\ 1999-52 I.R.B. 725.
---------------------------------------------------------------------------
Senate amendment
      The Senate amendment is the same as the House bill.
Conference agreement
      The conference agreement does not include the House bill 
or the Senate amendment provision.

B. Add Certain Vaccines Against Streptococcus Pneumoniae to the List of 
                            Taxable Vaccines

    (sec. 22 of the house bill and secs. 4131 and 4132 of the code)

Present law
      A manufacturer's excise tax is imposed at the rate of 75 
cents per dose (sec. 4131) on the following vaccines 
recommended for routine administration to children: diphtheria, 
pertussis, tetanus, measles, mumps, rubella, polio, HIB 
(haemophilus influenza type B), hepatitis B, varicella (chicken 
pox), and rotavirus gastroenteritis. In addition, the Ticket to 
Work and Work Incentives Improvement Act of 1999 (Pub. L. No. 
106-170, December 17, 1999) added any conjugate vaccine against 
streptococcus pneumoniae to the list of taxable vaccines. The 
tax applied to any vaccine that is a combination of vaccine 
components equals 75 cents times the number of components in 
the combined vaccine.
      Amounts equal to net revenues from this excise tax are 
deposited in the Vaccine Injury Compensation Trust Fund 
(``Vaccine Trust Fund'') to finance compensation awards under 
the Federal Vaccine Injury Compensation Program for individuals 
who suffer certain injuries following administration of the 
taxable vaccines. This program provides a substitute Federal, 
``no fault'' insurance system for the State-law tort and 
private liability insurance systems otherwise applicable to 
vaccine manufacturers and physicians. All persons immunized 
after September 30, 1988, with covered vaccines must pursue 
compensation under this Federal program before bringing civil 
tort actions under State law.
House bill
      The House bill would add any conjugate vaccine against 
streptococcus pneumoniae to the list of taxable vaccines.
Senate amendment
      No provision.
Conference agreement
      No provision. However, the provision was enacted in the 
Ticket to Work and Work Incentives Improvement Act of 1999.

C. Modification of Installment Method and Repeal of Installment Method 
                      for Accrual Method Taxpayers

 (sec. 501 of the Senate Amendment and secs. 453 and 453a of the code)

Present law
      The installment method of accounting allows a taxpayer to 
defer the recognition of income from the disposition of certain 
property until payment is received. Sales to customers in the 
ordinary course of business are not eligible for the 
installment method, except for sales of property that is used 
or produced in the trade or business of farming and sales of 
timeshares and residential lots if an election to pay interest 
under section 453(l)(2)(B)) is made. The Ticket to Work and 
Work Incentives Improvement Act of 1999 prohibits the use of 
the installment method for a transaction that would otherwise 
be required to be reported using the accrual method of 
accounting, effective for dispositions occurring on or after 
December 17, 1999.
      A pledge rule provides that if an installment obligation 
is pledged as security for any indebtedness, the net proceeds 
\3\ of such indebtedness are treated as a payment on the 
obligation, triggering the recognition of income. Actual 
payments received on the installment obligation subsequent to 
the receipt of the loan proceeds are not taken into account 
until such subsequent payments exceed the loan proceeds that 
were treated as payments. The pledge rule does not apply to 
sales of property used or produced in the trade or business of 
farming, to sales of timeshares and residential lots where the 
taxpayer elects to pay interest under section 453(l)(2)(B), or 
to dispositions where the sales price does not exceed $150,000. 
The Ticket to Work and Work Incentives Improvement Act of 1999 
provides that the right to satisfy a loan with an installment 
obligation will be treated as a pledge of the installment 
obligation, effective for dispositions occurring on or after 
December 17, 1999.
---------------------------------------------------------------------------
    \3\ The net proceeds equal the gross loan proceeds less the direct 
expenses of obtaining the loan.
---------------------------------------------------------------------------
House bill
      No provision.
Senate amendment
      The Senate amendment contains provisions prohibiting the 
use of the installment method for a transaction that would 
otherwise be required to be reported using the accrual method 
of accounting and expanding the pledge rule.
Conference agreement
      No provision. The provisions in the Senate amendment were 
enacted in the Ticket to Work and Work Incentives Improvement 
Act of 1999.

    D. Impose Limitation on Prefunding of Certain Employee Benefits

 (sec. 502 of the senate amendment and secs. 419a and 4976 of the code)

Present law
      Under present law, contributions to a welfare benefit 
fund generally are deductible when paid, but only to the extent 
permitted under the rules of sections 419 and 419A. The amount 
of an employer's deduction in any year for contributions to a 
welfare benefit fund cannot exceed the fund's qualified cost 
for the year minus the fund's after-tax income for the year. 
With certain exceptions, the term qualified cost means the sum 
of (1) the amount that would be deductible for benefits 
provided during the year if the employer paid them directly and 
was on the cash method of accounting, and (2) within limits, 
the amount of any addition to a qualified asset account for the 
year. A qualified asset account includes any account consisting 
of assets set aside for the payment of disability benefits, 
medical benefits, supplemental unemployment compensation or 
severance pay benefits, or life insurance benefits. The account 
limit for a qualified asset account for a taxable year is 
generally the amount reasonably and actuarially necessary to 
fund claims incurred but unpaid (as of the close of the taxable 
year) for benefits with respect to which the account is 
maintained and the administrative costs incurred with respect 
to those claims. Specific additional reserves are allowed for 
future provisions of post-retirement medical and life insurance 
benefits.
      The deduction limits of sections 419 and 419A for 
contributions to welfare benefit funds do not apply in the case 
of certain 10-or-more employer plans. A plan is a 10-or-more 
employer plan if (1) more than one employer contributes to it, 
and (2) no employer is normally required to contribute more 
than 10 percent of the total contributions contributed under 
the plan by all employers. The exception is not available if 
the plan maintains experience-rating arrangements with respect 
to individual employers.
      If any portion of a welfare benefit fund reverts to the 
benefit of an employer, an excise tax equal to 100 percent of 
the reversion is imposed on the employer.
House bill
      No provision.
Senate amendment
      The Senate amendment limits the present-law exception to 
the deduction limit for 10-or-more employer plans to plans that 
provide only medical benefits, disability benefits, and 
qualifying group-term life insurance benefits to plan 
beneficiaries. The legislative history provides that it is 
intended that a plan will not be treated as failing to provide 
only medical benefits, disability benefits, and qualifying 
group-term life insurance benefits to plan beneficiaries merely 
because the plan provides certain de minimis ancillary benefits 
in addition to medical, disability, and qualifying group-term 
life insurance benefits (e.g., accidental death and 
dismemberment insurance, group-term life insurance coverage for 
dependents and directors, business travel insurance, and 24-
hour accident insurance). Such ancillary benefits are 
considered de minimis only if the total premiums for all such 
insurance coverages for the year do not exceed 2 percent of the 
total contributions to the plan for the year for all employers. 
Of course, any benefits provided are includible in income 
unless expressly excluded under a specific provision under the 
Code.
      The legislative history also provides that, for purposes 
of this provision, qualifying group-term life insurance 
benefits do not include any arrangements that permit a plan 
beneficiary to directly or indirectly access all or part of the 
account value of any life insurance contract, whether through a 
policy loan, a partial or complete surrender of the policy, or 
otherwise. The legislative history provides that it is intended 
that qualifying group-term life insurance benefits do not 
include any arrangement whereby a plan beneficiary may receive 
a policy without a stated account value that has the potential 
to give rise to an account value whether through the exchange 
of such policy for another policy that would have an account 
value or otherwise.
      Under the Senate amendment, the 10-or-more employer plan 
exception is no longer available with respect to plans that 
provide supplemental unemployment compensation, severance pay, 
or life insurance (other than qualifying group-term life 
insurance) benefits. Thus, the generally applicable deduction 
limits (sections 419 and 419A) apply to plans providing these 
benefits.
      In addition, if any portion of a welfare benefit fund 
attributable to contributions that are deductible pursuant to 
the 10-or-more employer exception (and earnings thereon) is 
used for a purpose other than for providing medical benefits, 
disability benefits, or qualifying group-term life insurance 
benefits to plan beneficiaries such portion is treated as 
reverting to the benefit of the employers maintaining the fund 
and is subject to the imposition of the 100-percent excise 
tax.\4\ Thus, for example, cash payments to employees upon 
termination of the fund, and loans or other distributions to 
the employee or employer, would be treated as giving rise to a 
reversion that is subject to the excise tax.
---------------------------------------------------------------------------
    \4\ For purposes of the provision, medical benefits, disability 
benefits, and qualifying group-term life insurance benefits include de 
minimus ancillary benefits as described above.
---------------------------------------------------------------------------
      The legislative history indicates that no inference is 
intended with respect to the validity of any 10-or-more 
employer arrangement under the provisions of present law.
      Effective date.--The Senate amendment is effective with 
respect to contributions paid or accrued on or after June 9, 
1999, in taxable years ending after such date.
Conference agreement
      No provision.

     E. Treatment of Gain From Constructive Ownership Transactions

      (sec. 503 of the senate amendment and sec. 1260 of the code)

Present law
      The maximum individual income tax rate on ordinary income 
and short-term capital gain is 39.6 percent, while the maximum 
individual income tax rate on long-term capital gain generally 
is 20 percent. Long-term capital gain means gain from the sale 
or exchange of a capital asset held more than one year. For 
this purpose, gain from the termination of a right with respect 
to property which would be a capital asset in the hands of the 
taxpayer is treated as capital gain.\5\
---------------------------------------------------------------------------
    \5\ Section 1234A, as amended by the Taxpayer Relief Act of 1997.
---------------------------------------------------------------------------
      A pass-thru entity (such as a partnership) generally is 
not subject to Federal income tax. Rather, each owner includes 
its share of a pass-thru entity's income, gain, loss, deduction 
or credit in its taxable income. Generally, the character of 
the item is determined at the entity level and flows through to 
the owners.
      Investors may enter into forward contracts, notional 
principal contracts, and other similar arrangements with 
respect to property that provides the investor with the same or 
similar economic benefits as owning the property directly but 
with potentially different tax consequences as to the character 
and timing of any gain. The Ticket to Work and Work Incentives 
Improvement Act of 1999 limits the amount of long-term capital 
gain a taxpayer can recognize from certain ``constructive 
ownership transactions'' any excess gain is treated as ordinary 
income.
House bill
      No provision.
Senate amendment
      The Senate amendment provision limits the amount of long-
term capital gain a taxpayer can recognize from certain 
constructive ownership transactions with respect to certain 
financial assets. This provision was enacted in the Ticket to 
Work and Work Incentives Improvement Act of 1999.
Conference agreement
      No provision. However, the provision was enacted in the 
Ticket to Work and Work Incentives Improvement Act of 1999.

F. Require Consistent Treatment and Provide Basis Allocation Rules for 
    Transfers of Intangibles in Certain Nonrecognition Transactions

  (sec. 505 of the senate amendment and secs. 351 and 721 of the code)

Present law
      Generally, no gain or loss is recognized if one or more 
persons transfer property to a corporation solely in exchange 
for stock in the corporation and, immediately after the 
exchange such person or persons are in control of the 
corporation. Similarly, no gain or loss is recognized in the 
case of a contribution of property in exchange for a 
partnership interest. Neither the Internal Revenue Code nor the 
regulations provide the meaning of the requirement that a 
person ``transfer property'' in exchange for stock (or a 
partnership interest). The Internal Revenue Service interprets 
the requirement consistent with the ``sale or other disposition 
of property'' language in the context of a taxable disposition 
of property. See, e.g., Rev. Rul. 69-156, 1969-1 C.B. 101. 
Thus, a transfer of less than ``all substantial rights'' to use 
property will not qualify as a tax-free exchange and stock 
received will be treated as payments for the use of property 
rather than for the property itself. These amounts are 
characterized as ordinary income. However, the Claims Court has 
rejected the Service's position and held that the transfer of a 
nonexclusive license to use a patent (or any transfer of 
``something of value'') could be a ``transfer'' of ``property'' 
for purposes of the nonrecognition provision. See E.I. DuPont 
de Nemours & Co. v. U.S., 471 F.2d 1211 (Ct. Cl. 1973).
House bill
      No provision.
Senate amendment
      The Senate amendment treats a transfer of an interest in 
intangible property constituting less than all of the 
substantial rights of the transferor in the property as a 
transfer of property for purposes of the nonrecognition 
provisions regarding transfers of property to controlled 
corporations and partnerships. In the case of a transfer of 
less than all of the substantial rights, the transferor is 
required to allocate the basis of the intangible between the 
retained rights and the transferred rights based upon their 
respective fair market values.
      No inference is intended as to the treatment of these or 
similar transactions prior to the effective date.
      Effective date.--The provision is effective for transfers 
on or after the date of enactment.
Conference agreement
      No provision.

  G. Increase Elective Withholding Rate for Nonperiodic Distributions 
                    From Deferred Compensation Plans

      (sec. 506 of the Senate amendment and sec. 3405 of the Code)

Present law
      Present law provides that income tax withholding is 
required on designated distributions from employer deferred 
compensation plans (whether or not such plans are tax 
qualified), individual retirement arrangements (``IRAs''), and 
commercial annuities unless the payee elects not to have 
withholding apply. A designated distribution does not include 
any payment (1) that is wages, (2) the portion of which it is 
reasonable to believe is not includible in gross income, (3) 
that is subject to withholding of tax on nonresident aliens and 
foreign corporations (or would be subject to such withholding 
but for a tax treaty), or (4) that is a dividend paid on 
certain employer securities (as defined in sec. 404(k)(2)).
      Tax is generally withheld on the taxable portion of any 
periodic payment as if the payment is wages to the payee. A 
periodic payment is a designated distribution that is an 
annuity or similar periodic payment.
      In the case of a nonperiodic distribution, tax generally 
is withheld at a flat 10-percent rate unless the payee makes an 
election not to have withholding apply. A nonperiodic 
distribution is any distribution that is not a periodic 
distribution. Under current administrative rules, an individual 
receiving an nonperiodic distribution can designate an amount 
to be withheld in addition to the 10-percent otherwise required 
to be withheld.
      Under present law, in the case of a nonperiodic 
distribution that is an eligible rollover distribution, tax is 
withheld at a 20-percent rate unless the payee elects to have 
the distribution rolled directly over to an eligible retirement 
plan (i.e., an IRA, a qualified plan (sec. 401(a)) that is a 
defined contribution plan permitting direct deposits of 
rollover contributions, or a qualified annuity plan (sec. 
403(a)). In general, an eligible rollover distribution includes 
any distribution to an employee of all or any portion of the 
balance to the credit of the employee in a qualified plan or 
qualified annuity plan. An eligible rollover distribution does 
not include any distribution that is part of a series of 
substantially equal periodic payments made (1) for the life (or 
life expectancy) of the employee or for the joint lives (or 
joint life expectancies) of the employee and the employee's 
designated beneficiary, or (2) over a specified period of 10 
years or more. An eligible rollover distribution also does not 
include any distribution required under the minimum 
distribution rules of section 401(a)(9), hardship distributions 
from section 401(k) plans, or the portion of a distribution 
that is not includible in income. The payee of an eligible 
rollover distribution can only elect not to have withholding 
apply by making the direct rollover election.
House bill

  H. Provisions Relating to Real Estate Investment Trusts (``REITS'')

 (secs. 610-622 of the Senate amendment and secs. 852, 856, and 857 of 
                               the Code)

Present law
      In general, a real estate investment trust (``REIT'') is 
an entity that receives most of its income from passive real 
estate related investments and that receives pass-through 
treatment for income that is distributed to shareholders. If an 
electing entity meets the qualifications for REIT status, the 
portion of its income that is distributed to the investors each 
year generally is taxed to the investors without being 
subjected to tax at the REIT level.
      A REIT must satisfy a number of tests on a year-by-year 
basis that relate to the entity's: (1) organizational 
structure; (2) source of income; (3) nature of assets; and (4) 
distribution of income.
      Under the organizational structure test, except for the 
first taxable year for which an entity elects to be a REIT, the 
beneficial ownership of the entity must be held by 100 or more 
persons. Generally, no more than 50 percent of the value of the 
REIT's stock can be owned by five or fewer individuals during 
the last half of the taxable year. Certain attribution rules 
apply in making this determination. No similar rule applies to 
corporate ownership of a REIT.
House bill
      No provision.
Senate amendment
      The Senate amendment contains a number of provisions 
relating to REITS. These include a provision generally limiting 
the level of investment a REIT can have in another entity to 10 
percent of value (or vote), except in the case of taxable REIT 
subsidiaries, for which specific rules are provided. The 
provisions also permit REITs to own and operate health care 
facilities under certain circumstances, modify the definition 
of independent contractor and of real estate rental income, 
modify the earnings and profits rules for REITs and for 
regulated investment companies (``RICS''), and modify the 
estimated tax rules for investors in certain closely held 
REITs.
      The Senate amendment also imposes an additional 
requirement for REIT qualification that makes certain 
controlled entities ineligible for REIT status and imposes a 
number of related rules. Under that provision, except for the 
first taxable year for which an entity elects to be a REIT, no 
one person can own stock of a REIT possessing 50 percent or 
more of the combined voting power of all classes of voting 
stock or 50 percent or more of the total value of shares of all 
classes of stock of the REIT. For purposes of determining a person's 
stock ownership, rules similar to attribution rules for REIT 
qualification under present law apply (secs. 856(d)(5) and 856(h)(3)). 
The provision does not apply to ownership by a REIT of 50 percent or 
more of the stock (vote or value) of another REIT.
      An exception applies for a limited period to certain 
``incubator REIT''. An incubator REIT is a corporation that 
elects to be treated as an incubator REIT and that meets all 
the following other requirements: (1) it has only voting common 
stock outstanding, (2) not more than 50 percent of the 
corporation's real estate assets consist of mortgages, (3) from 
not later than the beginning of the last half of the second 
taxable year, at least 10 percent of the corporation's capital 
is provided by lenders or equity investors who are unrelated to 
the corporation's largest shareholder, (4) the corporation must 
annually increase the value of real estate assets by at least 
10 percent, (5) the directors of the corporation must adopt a 
resolution setting forth an intent to engage in a going public 
transaction, and (6) no predecessor entity (including any 
entity from which the electing incubator REIT acquired assets 
in a transaction in which gain or loss was not recognized in 
whole or in part) had elected incubator REIT status.
      The new ownership requirement does not apply to an 
electing incubator REIT until the end of the REIT's third 
taxable year; and can be extended for an additional two taxable 
years if the REIT so elects. However, a REIT cannot elect the 
additional two-year extension unless the REIT agrees that if it 
does not engage in a going public transaction by the end of the 
extended eligibility period, it shall pay Federal income taxes 
for the two years of the extended period as if it had not made 
an incubator REIT election and had ceased to qualify as a REIT 
for those two taxable years. In such case, the corporation 
shall file appropriate amended returns within 3 months of the 
close of the extended eligibility period. Interest would be 
payable, but no substantial underpayment penalties would apply 
except in cases where there is a finding that incubator REIT 
status was elected for a principal purpose other than as part 
of a reasonable plan to engage in a going public transaction. 
Notification of shareholders and any other person whose tax 
position would reasonably be expected to be affected is also 
required.
      If an electing incubator REIT does not elect to extend 
its initial 2-year extended eligibility period and has not 
engaged in a going public transaction by the end of such 
period, it must satisfy the new control requirements as of the 
beginning of its fourth taxable year (i.e., immediately after 
the close of the last taxable year of the two-year initial 
extension period) or it will be required to notify its 
shareholderss and other persons that may be affected by its tax 
status, and pay Federal income tax as a corporation that has 
ceased to qualify as a REIT at that time.
      If the Secretary of the Treasury determines that an 
incubator REIT election was filed for a principal purpose other 
than as part of a reasonable plan to undertake a going public 
transaction, an excise tax of $20,000 is imposed on each of the 
corporation's directors for each taxable year for which the 
election was in effect.
      For purposes of determining whether a corporation has met 
the requirement that it annually increase the value of its real 
estate assets by 10 percent, the following rules shall apply. 
First, values shall be based on cost and properly capitalizable 
expenditures with no adjustment for depreciation. Second, the 
test shall be applied by comparing the value of assets at the 
end of the first taxable year with those at the end of the 
second taxable year and by similar successive taxable year 
comparisons during the eligibility period. Third, if a 
corporation fails the 10 percent comparison tests for one 
taxable year, it may remedy the failure by increasing the value 
of real estate assets by 25 percent in the following taxable 
year, provided it meets all the other eligibility period 
requirements in that following taxable year.
      A going public transaction is defined as either (1) a 
public offering of shares of stock of the incubator REIT, (2) a 
transaction, or series of transactions, that result in the 
incubator REIT stock being regularly traded on an established 
securities market (as defined in section 897) and being held by 
shareholders unrelated to persons who held such stock before it 
began to be so regularly traded, or (3) any transaction 
resulting in ownership of the REIT by 200 or more persons 
(excluding the largest single shareholder) who in the aggregate 
own least 50 percent of the stock of the REIT. Attribution 
rules apply in determining ownership of stock.
      Effective date.--Under the Senate amendment, the 
provision denying REIT status to certain controlled entities is 
effective for taxable years ending after July 14, 1999. Any 
entity that elects (or has elected) REIT status for a taxable 
year including July 14, 1999, and which is both a controlled 
entity and has significant business assets or activities on 
such date, will not be subject to the proposal. Under this 
rule, a controlled entity with significant business assets or 
activities on July 14, 1999, can be grandfathered even if it 
makes its first REIT election after that date with its return 
for the taxable year including that date.
      For purposes of the transition rules, the significant 
business assets or activities in place on July 14, 1999, must 
be real estate assets and activities of a type that would be 
qualified real estate assets and would produce qualified real 
estate related income for a REIT.
Conference agreement
      No provision. However, the Senate amendment provisions, 
except for the provision what would have denied REIT status to 
certain controlled entities, were enacted in the ticket to Work 
and Work Incentives Improvement Act of 1999.

        I. Modification of Individual Estimated Tax Safe Harbor

      (sec. 623 of the Senate amendment and sec. 6654 of the Code)

Present law
      Under present law, an individual taxpayer generally is 
subject to an addition to tax for any underpayment of estimated 
tax. An individual generally does not have an underpayment of 
estimated tax if he or she makes timely estimated tax payments 
at least equal to: (1) 90 percent of the tax shown on the 
current year's return or (2) 100 percent of the prior year's 
tax. For taxpayers with a prior year's AGI above $150,000,\6\ 
however the rule that allows payment of 100 percent of prior 
year's tax is modified. Those taxpayers with AGI above $150,000 
generally must make estimated payments based on either (1) 90 
percent of the tax shown on the current year's return or (2) 
110 percent of the prior year's tax.
---------------------------------------------------------------------------
    \6\ The threshold is $75,000 for married taxpayers filing 
separately.
---------------------------------------------------------------------------
      For taxpayers with a prior year's AGI above $150,000, the 
prior year's tax safe harbor is modified for estimated tax 
payments made for taxable years 2000 and 2002. For such 
taxpayers making estimated tax payments based on prior year's 
tax payments must be made based on 108.6 percent of prior 
year's tax for taxable year 2000 \7\ and 112 percent of prior 
year's tax for taxable year 2002.
---------------------------------------------------------------------------
    \7\ This percentage was enacted in sec. 531 of P.L. 106-170, the 
Ticket to Work and Work Incentives Improvement Act of 1999 (December 
17, 1999).
---------------------------------------------------------------------------
House bill
      No provision.
Senate amendment
      The Senate amendment further modifies the safe harbor 
rule by providing that taxpayers with prior year's AGI above 
$150,000 who make estimated tax payments based on prior year's 
tax must do so based on 106.5 percent of prior year's tax for 
estimated tax payments made for taxable year 2000. Taxpayers 
with prior year's AGI above $150,000 who made estimated tax 
payments based on prior year's tax must do so based on 106 
percent of prior year's tax for estimated tax payments made for 
taxable year 2001. All other years remain as under present law.
      Effective date.--The provision is effective for estimated 
payments made for taxable year beginning after December 31, 
1999.
Conference agreement
      No provision.

          J. Provide Waiver From Denial of Foreign Tax Credits

     (sec. 724 of the Senate amendment and sec. 901(j) of the Code)

Present law
      In general, U.S. persons may credit foreign taxes against 
U.S. tax on foreign-source income. The amount of foreign tax 
credits that can be claimed in a year is subject to a 
limitation that prevents taxpayers from using foreign tax 
credits to offset U.S. tax on U.S.-source income. Separate 
limitations are applied to specific categories of income.
      Pursuant to special rules applicable to taxes paid to 
certain foreign countries, no foreign tax credit is allowed for 
income, war profits, or excess profits taxed paid, accrued, or 
deemed paid to a country which satisfies specified criteria, to 
the extent that the taxes are with respect to income 
attributable to a period during which such criteria were 
satisfied (sec. 901(j)). Section 901(j) applies with respect to 
any foreign country: (1) the government of which the United 
States does not recognize, unless such government is otherwise 
eligible to purchase defense articles or services under the 
Arms Export Control Act, (2) with respect to which the United 
States has severed diplomatic relations, (3) with respect to 
which the United States has not severed diplomatic relations 
but does not conduct such relations, or (4) which the Secretary 
of State has, pursuant to section 6(j) of the Export 
Administration Act of 1979, as amended, designated as a foreign 
country which repeatedly provides support for acts of 
international terrorisms (a ``section 901(j) foreign 
country''). The denial of credits applies to any foreign 
country during the period beginning on the later of January 1, 
1987, or six months after such country becomes a section 901(j) 
country, and ending on the date the Secretary of State 
certifies to the Secretary of the Treasury that such country is 
no longer a section 901(j) country.
      Taxes treated as noncreditable under section 901(j) 
generally are permitted to be deducted notwithstanding the fact 
that the taxpayer elects use of the foreign tax credit for the 
taxable year with respect to other taxes. In addition, income 
for which foreign tax credits are denied generally cannot be 
sheltered from U.S. tax by other creditable foreign taxes.
      Under the rules of subpart F, U.S. 10-percent 
shareholders of a controlled foreign corporation (``CFC'') are 
required to include in income currently certain types of income 
of the CFC, whether or not such income is actually distributed 
currently to the shareholders (referred to as ``subpart F 
income''). Subpart F income includes income derived from any 
foreign country during a period in which the taxes imposed by 
that country are denied eligibility for the foreign tax credit 
under section 901(j).\8\
---------------------------------------------------------------------------
    \8\ Sec. 952(a)(5).
---------------------------------------------------------------------------
House bill
      No provision.
Senate amendment
      The Senate amendment provides that section 901(j) no 
longer applies with respect to a foreign country if: (1) the 
President determines that a waiver of the application of 
section 901(j) to such foreign country is in the national 
interest of the United States and will expand trade 
opportunities for U.S. companies in such foreign country, and 
(2) the President reports to the Congress, not less than 30 
days before the waiver is granted, the intention to grant such 
a waiver and the reason for such waiver.
      Effective date.--The provision is effective on or after 
February 1, 2001.
Conference agreement
      The conference agreement follows the Senate amendment.

K. Accelerate Rum Excise Tax Coverover Payments to Puerto Rico and the 
                          U.S. Virgin Islands

      (sec. 221 of the senate amendment and sec. 7652 of the code)

Present law
      A $13.50 per proof gallon \9\ excise tax is imposed on 
distilled spirits produced in or imported (or brought) into the 
United States. The excise tax does not apply to distilled 
spirits that are exported from the United States or to 
distilled spirits that are consumed in U.S. possessions (e.g., 
Puerto Rico and the Virgin Islands).
---------------------------------------------------------------------------
    \9\ A proof gallon is a liquid gallon consisting of 50 percent 
alcohol.
---------------------------------------------------------------------------
      The Code provides for coverover (payment) of $13.25 per 
proof gallon of the excise tax imposed on rum imported (or 
brought) into the United States (without regard to the country 
of origin) to Puerto Rico and the Virgin Islands during the 
period July 1, 1999 through December 31, 2001. Effective on 
January 1, 2002, the coverover rate is scheduled to return to 
its permanent level of $10.50 per proof gallon. The maximum 
amount attributable to the increased coverover rate over the 
permanent rate of $10.50 per proof gallon that can be paid to 
Puerto Rico and the Virgin Islands before October 1, 2000 is 
$20 million. Payment of this amount was made on January 3, 
2000.\10\ Any remaining amounts attributable to the increased 
coverover rate are to be paid on October 1, 2000.
---------------------------------------------------------------------------
    \10\ The Department of the Interior, which administers the 
coverover payments for rum imported into the United States from the 
U.S. Virgin Islands, erroneously authorized full payment to the Virgin 
Islands of the increased coverover rate on that rum notwithstanding the 
statutory limit on these transfers for periods before October 1, 2000. 
The Bureau of Alcohol, Tobacco, and Firearms, which administers the 
coverover payments for the Virgin Islands' portion of tax collected on 
rum imported from other countries, complied with the statutory limit.
---------------------------------------------------------------------------
      Amounts covered over to Puerto Rico and the Virgin 
Islands are deposited into the treasuries of the two 
possessions for use as those possessions determine.
House bill
      No provision, but H.R. 984, as reported by the Committee 
on Ways and Means, would have provided an increase in the 
coverover amount to $13.50 per proof gallon for the period June 
30, 1999, and before October 1, 1999. (The conference report on 
the Ticket to Work and Work Incentives Improvement Act of 1999 
(Pub. L. No. 106-170, December 17, 1999) subsequently increased 
the coverover rate from $10.50 per proof gallon to $13.25 per 
proof gallon, and enacted the $20 million limit on transfer of 
the increased amount before October 1, 2000. The conference 
report further indicated that the special payment rule would be 
reviewed during consideration of H.R. 434.)
Senate amendment
      The Senate amendment is the same as the Ways and Means 
Committee-reported provisions of H.R. 984.
Conference agreement
      The conference agreement provides that unpaid amounts 
attributable to the increase in the coverover rate to $13.25 
per proof gallon for the period from July 1, 1999 through the 
last day of the month prior to the date of enactment will be 
paid on the first monthly payment date following the date of 
enactment.\11\ With respect to amounts attributable to the 
period beginning with the month of the conference agreement's 
enactment, payments will be based on the full $13.25 per proof 
gallon rate.
---------------------------------------------------------------------------
    \11\ Thus, this provision of the conference agreement applies only 
to payments to Puerto Rico and to payments of the Virgin Islands' 
portion of tax on rum imported from other countries because the 
Interior Department erroneously has already paid in full amounts 
attributable to rum imported from the Virgin Islands.
---------------------------------------------------------------------------
      The conference agreement further includes two 
clarifications to the rules governing coverover payments. 
First, clarification is provided that payments to the Virgin 
Islands with respect to rum imported from that possession are 
to be made annually in advance (based on estimates) as is the 
current administrative practice. Second, the conference 
agreement clarifies that the Internal Revenue Code provisions 
governing coverover payments are the exclusive authorize 
authority for making those payments.
      Effective date.--The provision is effective on the date 
of enactment.

   trade provisions not included in either the house or senate bill--
      access to hiv/aids pharmaceuticals and medical technologies

Present law
      The Special 301 provisions of the Trade Act of 1974 
require the President to identify, within 30 days after 
submission of the annual National Trade Estimates report to 
Congress, those foreign countries that deny adequate and 
effective protection of intellectual property rights or fair 
and equitable market access to U.S. persons that rely upon 
intellectual property protection, and those countries 
determined by USTR to be ``priority foreign countries.'' The 
President is to identify as priority countries only those that 
have the most onerous or egregious acts, policies, or practices 
with the greatest adverse impact on the relevant U.S. products, 
and that are not entering into good faith negotiations or 
making significant progress in bilateral or multilateral 
negotiations to provide adequate and affective intellectual 
property rights protection.
House bill
      No provision.
Senate amendment
      Section 116 of the Senate bill seeks to address the issue 
of access to HIV/AIDS pharmaceuticals and medical technologies 
in the beneficiary countries of sub-Saharan Africa. In 
subsection (a), Congress finds that since the onset of the 
worldwide HIV/AIDS epidemic, approximately 34,000,000 people 
living in sub-Saharan Africa have been infected with the 
disease. Of those infected, approximately 11,500,000 have died, 
representing 83 percent of the total HIV/AIDS-related deaths 
worldwide. Subsection (b) expresses the sense of Congress that:
            It is in the interest of the United States to take 
        all necessary steps to prevent further spread of 
        infectious disease, particularly HIV/AIDS;
            There is critical need for effective incentives to 
        develop new pharmaceuticals, vaccines, and therapies to 
        combat the HIV/AIDS crisis, especially effective global 
        standards for protecting pharmaceutical and medical 
        innovation;
            The overriding priority for responding to the 
        crisis on HIV/AIDS in sub-Saharan Africa should be the 
        development of the infrastructure necessary to deliver 
        adequate health care services, and of public education 
        to prevent transmission and infection, rather than 
        legal standards issues;
            Individual countries should have the ability to 
        determine the availability of pharmaceuticals and 
        health care for their citizens in general, and 
        particularly with respect to the HIV/AIDS epidemic.
      Subsection (c) prohibits the Administration from seeking, 
through negotiation or otherwise, the revocation or revision of 
any intellectual property or competition law or policy that 
regulates HIV/AIDS pharmaceuticals or medical technologies of a 
beneficiary sub-Saharan African country if the law or policy 
promotes access to HIV/AIDS pharmaceuticals or medical 
technologies and the law or policy of the country provides 
adequate and effective intellectual property protection 
consistent with the Agreement on Trade-Related Aspects of 
Intellectual Property Rights referred to in section 101(d)(15) 
of the Uruguay Round Agreements Act.
Conference agreement
      The Senate recedes to the House.

                      trade adjustment assistance

Present law
      Title II of the Trade Act of 1974, as amended, authorizes 
three trade adjustment assistance (TAA) programs for the 
purpose of providing assistance to individual workers and firms 
that are adversely affected by import competition. Those 
programs are: (1) the general TAA program for workers, which 
provides training and income support for workers adversely 
affected by import competition; (2) the TAA program for firms, 
which provides technical assistance to qualifying firms; and 
(3) the North American Free Trade Agreement (NAFTA) 
Transitional Adjustment Assistance (NAFTA-TAA) program for 
workers (established by the North American Free Trade Agreement 
Implementation Act of 1993), which provides training and income 
support for workers adversely affected by imports from or 
production shifts to Canada and/or Mexico.
      The authorizations for all three programs expire on 
September 30, 2001. At the time of the passage of the Senate 
bill, the authorization for these programs had expired on June 
30, 1999.
House bill
      No provision.
Senate amendment
      Section 401 of the Senate bill reauthorizes each of the 
three TAA programs through September 30, 2001. It also caps the 
amount of money appropriated for any fiscal year from October 
1, 1998 to September 30, 2001 at $30,000,000.
      Section 402 of the Senate bill requires the Secretary of 
Labor to certify as eligible for benefits under the general TAA 
program workers in textile and apparel firms who lose their 
jobs as a result of either (1) a decrease in the firm's sales 
or production; or (2) a firm's plant or facility closure or 
relocation.
Conference agreement
      The Senate recedes to the House.

                Trade Adjustment Assistance for Farmers

Present law
      Title II of the Trade Act of 1974, as amended, authorizes 
three trade adjustment assistance (TAA) programs for the 
purpose of providing assistance to individual workers and firms 
that are adversely affected by import competition. Those 
programs are: the general TAA program for workers, which 
provides training and income support for workers adversely 
affected by import competition; the TAA program for firms, 
which provides technical assistance to qualifying firms; and 
the North American Free Trade Agreement Act (NAFTA) 
transitional adjustment assistance program which provides 
training and income support for workers who may be adversely 
impacted by imports from or production shifts to Canada and/or 
Mexico.
House bill
      No provision.
Senate amendment
      The Trade Adjustment Assistance for Farmers provision 
would create a new TAA program for farmers as Chapter 6 of 
title II of the Trade Act of 1974. Under this new program, 
farmers would be eligible for cash assistance when commodity 
prices drop by more than 20 percent below the average for the 
previous five year period and imports contributed importantly 
to this price drop. When a commodity meets these criteria, 
individual farmers would be eligible to receive cash assistance 
equal to half the difference between the actual national 
average price for the year and 80 percent of the average price 
in the previous five years (the price trigger level), provided 
that the farmer's income had declined from the previous year. 
This assistance was capped at $10,000 per farmer. The program 
is authorized at $100 million annually and is to be 
administered by the Department of Agriculture.

                         Report on Debt Relief

Present law
      No provision.
House bill
      No provision.
Senate amendment
      Section 705 of the Senate amendment requires the 
President to submit a report to Congress on the President's 
recommendations for: bilateral debt relief for sub-Saharan 
African countries; new loan, credit and guarantee programs for 
these countries; and the President's assessment of how debt 
relief will affect the ability of each country to participate 
fully in the international trading system.
Conference agreement
      The Senate recedes to the House. Section 714 of the 
Senate bill, expressing Congress' support for comprehensive 
debt relief for the world's poorest countries, is included in 
Title I of the conference agreement.

 Sense of Senate Regarding Fair Access to Japanese Telecommunications 
                        Facilities and Services

Present law
      No provision.
House bill
      No provision.
Senate amendment
      Section 709 of the Senate amendment expresses the Sense 
of the Senate that the Administration should pursue efforts to 
open the Japanese telecommunications market, particularly to 
internet services. This provision notes that despite several 
bilateral agreements with Japan regarding its 
telecommunications market, the Senate remains concerned about 
Japan's excessive regulation and anti-competitive activity in 
the telecommunications sector. The provision urges the 
Administration to continue to pursue aggressively further 
market opening with Japan as part of the multilateral 
negotiations that were to be launched at the WTO Ministerial in 
Seattle (November 30-December 3).
Conference agreement
      The Senate recedes to the House.

                       report on wto ministerial

Present law
      No provision.
House bill
      No provision.
Senate amendment
      Section 709 of the Senate amendment expresses the Sense 
of Congress on the importance of the new round of international 
trade negotiations that was to be launched at the World Trade 
Organization (WTO) Ministerial Conference in Seattle, 
Washington from November 30 to December 3, 1999. Subsection (b) 
requires that the United States Trade Representative shall 
submit a report to Congress regarding any discussions on the 
Agreement on Implementation of Article VI of the General 
Agreement on Tariffs and Trade 1994 (the Antidumping Agreement) 
and the Agreement on Subsidies and Countervailing Measures 
during the Seattle Ministerial Conference.
Conference agreement
      The Senate recedes to the House.

                      marking of imported jewelry

Present law
      Section 304 of the Tariff Act of 1930 (19 U.S.C. 
Sec. 1304) requires that all articles of foreign origin 
imported into the United States ``shall be marked in a 
conspicuous place as legibly, indelibly and permanently as the 
nature of the article (or container) will permit a manner to 
indicate to the ultimate purchaser in the United States the 
English name of the country of origin of the article.'' The 
provision authorizes several exceptions to this standard 
including where ``such article is incapable of being marked'' 
and ``such article cannot be marked prior to shipment to the 
United States, except at an expense economically prohibitive of 
its importation.'' 19 U.S.C. Sec. 1304(3) (A), (C). Part 134, 
Customs Regulations (19 C.F.R. part 134), implements the 
country of origin marking requirements and exceptions of 19 
U.S.C. 1304.
      The Customs Service has not implemented any specific 
regulation with respect to costume jewelry. In practice, 
however, the Customs Service has interpreted the statute and 
its exceptions to permit articles of costume jewelry to be 
marked with a hang tag, applied tag, or similar labeling where 
the article is incapable of being marked in a more permanent 
manner or where it is economically prohibitive to indelibly 
mark the article.
House bill
      No provision.
Senate amendment
      Section 720 of the Senate bill directs the U.S. 
Department of Treasury to implement regulations, consistent 
with the existing statutory framework, with respect to the 
marking of costume jewelry of foreign origin within one year of 
the date of enactment of this bill. These regulations are 
intended to clarify the existing statutory standard and are to 
be modeled after the Customs Service's regulation with respect 
to Native American jewelry, codified in 19 C.F.R. 
Sec. 134.43(c).
      The U.S. jewelry industry continues to report, however, 
that hang tags and labels on imported costume jewelry that are 
in place upon entry into the United States often disappear or 
are removed prior to the jewelry's display or sale. When 
country-of-origin markings do not appear on imported jewelry or 
other items offered to the consumer, it constitutes a violation 
of federal marking law and prevents purchasers from being 
informed about the origin of such products.
Conference agreement
      The Senate recedes to the House.

               Unreasonable Acts, Policies and Practices

Present law
      Sections 301-310 of the Trade Act of 1974 provides 
authority to the United States Trade Representative to enforce 
U.S. rights under international trade agreements. Section 
301(a) authorizes the Trade Representative to take action to 
enforce such rights if the Trade Representative determines that 
an act, policy, or practice of a foreign country is 
unreasonable or discriminatory and burdens or restricts United 
States commerce. Section 301(d)(3)(B)(i) defines unreasonable 
acts, policies, and practices to include acts which deny fair 
and equitable market opportunities, including the toleration by 
a foreign government of systematic anticompetitive activities 
by enterprises in the foreign country that have the effect of 
restricting access of U.S. goods or services in that foreign 
market or a third country market.
House bill
      No provision.
Senate amendment
      Section 725 of the Senate amendment adds language to 
section 301(d)(3)(B)(i) to define unreasonable acts, policies, 
and practices which deny fair and equitable market 
opportunities as including predatory pricing, discriminatory 
pricing, or pricing below the cost of production if such acts, 
policies or practices are inconsistent with commercial 
practices. This provision also deletes the existing reference 
to systematic anticompetitive activities.
Conference agreement
      The House recedes to the Senate.
                From the Committee on International Relations, 
                for consideration of the House bill and the 
                Senate amendment, and modifications committed 
                to conference:
                                   Benjamin A. Gilman,
                                   Edward R. Royce,
                                   Sam Gejdenson,
                From the Committee on Ways and Means, for 
                consideration of the House bill and the Senate 
                amendment, and modifications committed to 
                conference:
                                   Bill Archer,
                                   Phil Crane,
                                   Charles B. Rangel,
                As additional conferees, for consideration of 
                the House bill and the Senate amendment, and 
                modifications committed to conference:
                                   Amo Houghton,
                                   Joe Hoeffel,
                                 Managers on the Part of the House.

                                   W.V. Roth, Jr.,
                                   Chuck Grassley,
                                   Trent Lott,
                                   Daniel P. Moynihan,
                                   Max Baucus,
                                   Joe Biden,
                                Managers on the Part of the Senate.