A bill to preserve United States support for an open international trading system, to enhance the competitiveness of the United States in international trade, and for other purposes.

Title I: Enforcement of United States Rights Under Trade Agreements and Response to Certain Foreign Trade Practices - Amends the Trade Act of 1974 to require presidential action if the President or the U.S. Trade Representative (USTR) determines that U.S. rights under any trade agreement are being denied or a foreign country's act, policy, or practice: (1) is inconsistent with, or denies benefits to the United States under, any trade agreement; or (2) is unjustifiable and burdens or restricts U.S. commerce.

Requires the President, unless the contracting parties to the General Agreement on Tariffs and Trade (GATT) make a specified finding or the President makes a specified finding, to: (1) suspend or remove certain benefits of the trade agreement, impose restrictions on the foreign country involved, or withdraw benefits under the Generalized System of Preferences; or (2) restrict imports of services; or (3) both (1) and (2); and (4) take all other appropriate and feasible actions to enforce such rights or end such act, policy, or practice. Requires such action to be devised to affect goods or services of the foreign country involved in an amount equivalent to the amount that such country restricts U.S. commerce. Requires the President to apply such action, without modification, against a foreign country that has been designated as an excessive surplus country.

Requires the President to take all appropriate actions to eliminate, and/or to offset the effects of, export targeting if: (1) the USTR determines that a foreign country practices export targeting; and (2) the International Trade Commission (ITC) determines that imports of targeted merchandise are injuring a U.S. industry. Requires the President to report to the Congress on each action taken or the reasons no action was taken to: (1) enforce U.S. rights or eliminate unfair trade acts, policies, or practices; or (2) eliminate or offset the export targeting policy or practice.

Requires the President to take all appropriate and feasible action to eliminate a foreign country's act, policy, or practice which is unreasonable or discriminatory and burdens or restricts U.S. commerce.

Requires the President, before taking any such action to restrict imports, to consider the likely impact that such action will have on U.S. agricultural exports.

Requires the President, within 30 days of receiving the USTR's recommendation to take action to enforce U.S. trade rights, to determine what action to take and to implement such action. Authorizes the President to delay such determination and implementation for up to 90 days if: (1) either the petitioner or the industry that would benefit from such action requests the delay; or (2) the President determines that substantial progress towards a solution is being made.

Defines "export targeting" as any government plan consisting of a combination of actions that are bestowed on a specific enterprise or group of enterprises which improves the competitiveness of exports by such enterprise or group.

Requires the USTR, not later than March 31 of the calendar year following a U.S. global deficit year, to determine if a foreign country was an excessive surplus country during that calendar year. Sets forth specified circumstances under which the USTR must terminate such determination. Defines "excessive surplus country" to mean a foreign country that, during a U.S. global deficit year, had: (1) a surplus of trade in goods and services with the United States in which the aggregate value accounts for not less than 20 percent of the U.S. global deficit for such year; and (2) a surplus of trade in goods and services worldwide in which the aggregate value exceeds an amount equal to two percent of the gross national product of that country for such year. Defines "United States global deficit year" as any calendar year after 1985 in which the United States had a deficit in trade in goods and services in which the aggregate value equals or exceeds two percent of the U.S. gross national product for that year.

Expresses the sense of the Congress that substantial implementation by Japan of economic reforms contained in the "Maekawa Report" is a sufficient basis for an affirmative determination by the USTR for presidential relief under the Act.

Requires the USTR to notify the ITC of investigations involving alleged export targeting. Terminates the investigation if the USTR determines no export targeting exists or the ITC determines that imports of the targeted merchandise caused no material injury to a U.S. industry or to the establishment of a U.S. industry. Sets forth the timetable for making such determinations. Defines "material injury" and sets the standard for determining whether a material injury has been incurred. Provides for remedies under the countervailing and antidumping provisions of the Tariff Act of 1930, if appropriate.

Provides for the presentation of views by interested persons concerning actions to enforce U.S. trade rights.

Requires the USTR to direct certain inquiries to the foreign countries involved in an investigation of unfair trade practices. Authorizes the USTR to request the foreign countries to provide documentation or permit verification of its information. Authorizes the USTR to disregard such information and instead use the best information available if the information provided by the foreign country is not timely, is incomplete, or is insufficiently verified.

Requires the USTR to consult with the petitioner before delaying consultations with a foreign country in cases involving enforcement of U.S. trade rights. Requires the USTR to give at least 30 days' notice for the presentation of views by interested persons in such cases before making recommendations to the President on enforcement actions. Requires the USTR to consult with business and labor representatives of the affected industry and with other interested persons on the nature of the appropriate remedial action in cases involving export targeting.

Requires the USTR to consult with interested persons within 90 days of identification of a foreign country's market access barrier that has a significant adverse impact on U.S. exports if such barrier is likely to be an abridgement of U.S. rights under a trade agreement, is by a country that is designated as an excessive surplus country and is considered by the USTR as being a practice that is unreasonable and restricts U.S. commerce, and is not otherwise the subject of an investigation.

Requires the USTR, subject to certain consultation requirements, to: (1) determine whether U.S. rights under a trade agreement are being denied or an unfair trade act, policy, or practice exists; and (2) recommend to the President what action to take if the determination under (1) is affirmative, and, in cases involving export targeting, the ITC found that injury, the threat of injury, or industry retardation exists.

Changes the timetable for the USTR to determine whether action is required and to make recommendations to the President to: (1) 30 days after conclusion of dispute settlements or nine months after initiation of the investigation whichever occurs first, if a trade agreement other than the Subsidies Agreement is involved; or (2) nine months (11 months in export targeting cases) in any other case. Retains the current timetable for cases involving export subsidies, domestic subsidies, and combinations of export and domestic subsidies.

Authorizes the President to modify or terminate an action taken to enforce U.S. trade rights if: (1) the contracting parties to the GATT make specified findings; or (2) the President determines that the foreign act, policy, or practice has been eliminated or is being phased out or that the action is not effective or that its continuation is not in the national economic interest. Requires the USTR to review and assess biennially the results of actions taken to enforce U.S. rights. Provides for publication of, and notification of the Congress of, any modification or termination.

Requires the USTR to submit the annual national trade estimates to the House Foreign Affairs Committee. Requires such estimates to include, beginning on October 30, 1986, an identification of those acts, policies, and practices included in the analysis that had significant adverse impact on U.S. exports, and likely are unjustifiable or inconsistent with, or otherwise deny benefits to the United States under, any trade agreement.

Title II: Relief From Injury Caused by Import Competition - Amends the Trade Act of 1974 to require the USTR to establish an industry competitiveness and adjustment team for an industry any time the ITC commences an import relief investigation that is based upon a petition filed by specified entities which represent a significant portion of those entities in the affected domestic industry. Requires the team to prepare a competitiveness and adjustment strategy that: (1) assesses the appropriate level of output and productive capacity for the domestic industry if it is to operate viably after the expiration of any import relief provided under the Act; (2) specifies the objectives of the industry regarding the extent of investment or restructuring that must occur for the industry to operate viably after the expiration of such relief; (3) assesses the extent of worker and community dislocation and the need for adjustment assistance for such workers and communities that are affected by injurious imports; and (4) outlines the actions that should have been taken by management and labor and Federal, State, and local agencies to remedy such dislocation.

Directs the team coordinator to submit such strategy to the ITC on the day after the ITC makes an affirmative determination.

Directs the USTR, after receiving a report from the ITC containing an affirmative finding of injury, or threat thereof, to an industry, to determine whether to: (1) provide the import relief determined by the ITC; or (2) deny such relief. Establishes in the Treasury the Industry Competitiveness and Adjustment Fund. Establishes a subaccount for an affected industry in cases where import relief is provided under the Act. Appropriates to each subaccount an amount equal to the revenues collected as a result of the import relief provided to an industry.

Directs the USTR (currently the President) to submit to the Congress a report setting forth reasons for the determination to provide or deny import relief to an industry. Provides that the import relief provided by the ITC shall take effect upon the adoption and enactment of a resolution by the Congress in cases where the USTR has made a determination as to import relief for an industry. Repeals a provision of the Act relating to the maximum import relief that can be provided.

Directs a review committee consisting of the team coordinator, the Secretary of Labor, and such other heads of agencies as may be designated to: (1) monitor actions taken by petitioners to achieve the objectives specified in the competitiveness and adjustment strategy; (2) make recommendations for administrative action to achieve such objectives; and (3) submit such recommendations to the Congress if import relief is provided to an industry.

Adds factors to be considered by the ITC when making determinations with respect to the threat of serious injury to an industry from increased quantities of imports. Requires the ITC (current law permits) to consider specified factors determining the domestic industry producing an article like or directly competitive with an imported article. Makes changes to the definition of "substantial cause."

Requires the ITC to determine the method and extent of import relief to be provided to an industry to prevent or remedy the injury or threat thereof to an industry when the ITC makes an affirmative determination. Provides that such relief shall be: (1) an increase in, or imposition of, any duty on the article causing, or threatening to cause, the serious injury; (2) the imposition of a tariff-rate quota on such article; or (3) the modification, or imposition, of quantitative restrictions on the importation into the United States of such article, to the extent and for such time (not to exceed five years) as the ITC considers necessary to remedy the injury or threat. Requires the ITC to hold a public hearing on the import relief provided by the ITC and the industry competitiveness and adjustment strategy submitted under this Act when an affirmative determination is made by the ITC. Prohibits any import relief that increases a rate which is more than 50 percent above the rate (if any) existing at the time the relief is commenced. Sets forth factors to be considered by the ITC in determining the method and duration of import relief. Requires the ITC to report its findings to the USTR with respect to import relief investigations.

Requires the ITC, within 48 hours of finding that serious injury or the threat of serious injury exists with respect to any article, to notify the Secretary of Labor and the Secretary of Commerce of: (1) the finding; (2) the identity of the domestic producers and products within the scope of the finding; and (3) all nonconfidential information obtained by the ITC that may be relevant to a determination of eligibility for adjustment assistance.

Requires that expedited consideration be given to petitions for certification of eligibility for adjustment assistance by: (1) workers in a domestic industry which the ITC, within the three years preceding the petition, has determined was seriously injured by imports; and (2) firms which are a part of such a domestic industry.

Title III: Amendments to Countervailing and Antidumping Duty Laws - Amends the Tariff Act of 1930 to include in the definition of "subsidy" (for antidumping and countervailing duty purposes) any resource input subsidy. States that a "resource input subsidy" exists if: (1) (a) a product is provided or sold by a government-regulated entity for input use within such country at a domestic price that is lower than the fair market value of the input product and is not freely available to U.S. producers; and (b) a product would, if sold at the fair market value, constitute a significant portion of the total cost of the merchandise in or for which the input product is used; or (2) under specified circumstances, the right to remove such product is provided by that country's government. Sets forth the method of calculating the amount of a resource input subsidy.

Defines "fair market value" and "input use."

Requires injury determinations by the ITC to be made in all countervailing duty investigations relating to the existence of resource input subsidies.

Requires the administering authority to adjust the foreign market value of an import if the administering authority determines in an antidumping investigation that: (1) a dumped input product is incorporated into or used in the manufacture or production of the import subject to the investigation; and (2) the manufacturer or producer of such import purchased the dumped input product for a price that is less than the adjusted foreign market value of that product.

Defines "dumped input product" to be merchandise subject to an antidumping duty order or to a specified international agreement.

Creates a right to a private remedy for injury resulting from dumping. Authorizes as eligible parties to sue for damages in the Court of International Trade: (1) any manufacturer of the dumped merchandise; and (2) any exporter, importer, or consignee who knew or had reason to know that the merchandise was sold at less than fair value.

Title IV: Principal Negotiating Objectives and Unfair Trade Practices Functions of the USTR - Amends the Trade Act of 1974 to describe the principal trade negotiating objectives of the United States, including: (1) to improve the dispute settlement procedures of the General Agreement on Tariffs and Trade (GATT); (2) to strengthen the GATT rules pertaining to subsidy practices and countervailing and antidumping measures; (3) to limit and counteract industrial export targeting practices which are injurious to foreign producers; (4) to reduce barriers and other distortions that affect international trade; and (5) to develop mechanisms to assure greater cooperation between international trade and monetary systems.

Establishes in the Office of the USTR an Office of Unfair Trade Investigations to: (1) coordinate the application of interagency resources to specific unfair trade practice cases; (2) prepare the annual report on foreign trade barriers; (3) identify unfair trade practices that have an adverse commercial impact on industries that need help to initiate proceedings for relief; and (4) identify those U.S. Government policies which may constitute unfair trade practices. Establishes in the Office of the USTR an interagency unfair trade practices advisory council. Authorizes appropriations.

Title V: Customs and Import Administration - Amends the Tariff Act of 1930 to make it unlawful for any person to: (1) alter a country of origin; or (2) sell or transport any article that does not have its country of origin marking or that has had its country of origin marking altered. Sets forth penalties.

Makes it unlawful to sell or distribute counterfeit goods in countries outside the United States. Authorizes the ITC to prohibit imports by any person with respect to whom there is reason to believe that such person is violating the prohibition against selling or distributing counterfeit goods in foreign countries. Requires such counterfeit goods to be seized and forfeited if they are imported into the United States. Makes it unlawful to sell or transport such goods in the United States. Sets forth penalties.

Amends the Steel Import Stabilization Act to provide that any steel product that is manufactured in a country that is not party to a bilateral arrangement (a non-arrangement country) from steel which is melted and poured in a country that is an arrangement country will be treated for purposes of the quantitative restrictions under that arrangement as if it were a product of an arrangement country. Provides that such quantitative restriction period shall not apply to the number of articles that constitute the historical quantity of a steel product that was manufactured in a country not a party to a bilateral arrangement from steel that was poured in an arrangement country. Defines "historical quantity" to mean the aggregate quantity of a steel product that was imported from the country of manufacture in the United States during FY 1984. Requires the Customs Service, if provided with documentation that a steel product was exported by an arrangement country to a non-arrangement country where the product was transformed for export to the United States, to treat such documented product as if it were a product of the arrangement country for purposes of quantitative restrictions.

Directs the Secretary of Commerce to monitor each restriction period to determine if authorized import levels have been exceeded. Sets forth specified duties of the Secretaries of Commerce and the Treasury in the event that authorized import levels have been exceeded. Requires the President to report to the Congress recommendations regarding steps to be taken after termination of the quantitative restriction period to ensure that the foreign share of the U.S. market for steel products is commensurate with a level which would: (1) obtain unsubsidized competition; and (2) not pose a threat to the U.S. industrial base or to U.S. national security.

Directs the Secretary of Commerce to determine whether the annual U.S. market share of textile products has increased, or will likely increase, more than 75 percent over the U.S. market share accounted for by textile products during the preceding annual period. Requires the Secretary to: (1) report such determination to the House Committee on Ways and Means and the Senate Committee on Finance; and (2) publish notice of such determination in the Federal Register if an affirmative determination is made. Requires the Secretary to request consultations under the Multifiber Arrangement regarding import restrictions on textile products if he makes an affirmative determination for two successive quarters. Provides that the Secretary may not have to request such consultations if he determines, and submits written certification to congressional committees, that the increase or likely increase in imported textile products will not result in U.S. market disruption.

Directs the Secretary to prohibit for three years any multiple customs law offender from: (1) introducing or trying to introduce foreign goods or services into U.S. commerce; and (2) engaging or trying to engage any other person to introduce, on such offender's behalf, foreign goods into U.S. commerce. Provides for identifying such multiple offenders. Sets the penalty for violations of such prohibition.

Amends the Tariff Act of 1930 to include, for purposes of determining the transaction value of imported merchandise, costs and charges incurred by the buyer for the transportation, insurance, loading, and handling of merchandise imported into the United States. Provides an adjustment to be made to compensate for significant differences between such costs and charges for the imported goods and for the identical or similar goods in question as a result of disparities in distance and modes of transportation.

Requires the ITC to investigate and submit a report to the Congress regarding the trade restructuring effects of Japan's toleration of cartels.

Title VI: Competitive Foreign Exchange Rate Policy - Requires the Secretary of the Treasury to submit to the House Committee on Banking, Finance and Urban Affairs and the Senate Committee on Banking, Housing, and Urban Affairs a report on exchange rates. Sets forth specified information to be included in such reports. Directs each Committee to consult with the Secretary and report to its House on the Secretary's intended policies.

Directs the Secretary to take steps to ensure that the actual exchange rate of the U.S. dollar and the bilateral exchange rates of specified countries are consistent with: (1) a sustainable balance in the U.S. current account; and (2) the competitiveness of the traded goods sector of the U.S. economy.

Title VII: Foreign Commercial Service - Directs the Secretary of Commerce to establish a pilot program in the Foreign Commercial Service to encourage the export of U.S. goods and services to Japan, South Korea, and Taiwan. Sets forth actions the Foreign Commercial Service shall take through such program. Directs the Secretary to report semiannually to specified congressional committees on the progress of such program, including: (1) the goods and services proposed for trade liberalization; (2) the results of any liberalization towards U.S. goods and services; and (3) the increase in U.S. commercial sales in Japan, South Korea, and Taiwan. Authorizes appropriations for such program for FY 1987 through 1991.

Amends the Export Administration Amendments Act of 1985 to authorize the Secretary of Commerce to establish a Market Development Cooperator Program the purpose of which is to develop, maintain, and expand foreign markets for nonagricultural goods and services produced in the United States. Authorizes the Secretary to enter into contracts with specified organizations (cooperators) to engage in activities in order to carry out the purpose of the Program. Requires the Secretary to establish a partnership program with cooperators under which a cooperator may detail individuals to the Foreign Commercial Service. Sets forth administrative provisions governing such details. Designates the Market Development Cooperator Program an export promotion program under such Act.

Amends the Taiwan Relations Act to require the American Institute of Taiwan to employ personnel to perform duties similar to those performed by personnel of the Foreign Commercial Service.

Requires the Secretary to submit to the President and to the Congress a list of those U.S. missions abroad which are commercially significant or are located in a geographical area of commercial importance to the United States. Requires the Secretary of State to designate the senior Commercial Officer at any such mission a Minister-Counselor. Requires the Secretary of State to consider filling any vacancy in the Counsel General position of any U.S. consulate with a Commercial Officer under certain circumstances.

Title VIII: Federal Budget Competitiveness Impact Statement - Amends Federal law to require the President to submit a budget to the Congress containing an analysis, prepared by the Council of Economic Advisors, of the budget's impact on the international competitiveness of U.S. balance of payments.

Amends the Congressional Budget Act of 1974 to require the Congress to adopt a concurrent resolution on the budget which shall contain an analysis, prepared by the Congressional Budget Office, of such resolution's impact on the international competitiveness U.S. business and the U.S. balance of payments.

Title IX: Dislocated Worker Programs - Amends the Job Training Partnership Act to prohibit a State from continuing to receive funds for employment and training assistance for dislocated workers unless: (1) such State has established a rapid response capability with respect to dislocated workers; and (2) such State informs dislocated workers of the entitlement and conversion options which are available to such worker under the Federal Unemployment Tax Act. Requires each State to establish a system to ensure delivery to workers to a job site affected by a plant closing or mass layoff of information concerning: (1) Federal, State, and local income benefits; (2) present and future job openings; and (3) retraining opportunities.

Directs the Secretary of Labor, upon notice from a State that workers may be eligible for adjustment assistance, to commence an investigation to determine if such closing or layoff was caused, in whole or in part, by foreign competition. Requires the Secretary within 90 days of such notice to determine worker eligibility for assistance.

Provides that a dislocated worker may obtain: (1) remedial education or retraining; and (2) supplemental income, on-the-job allowances, and supplemental wage allowances not to exceed $4,000. Sets forth eligibility requirements. Appropriates funds from the Dislocated Worker Labor Productivity Trust Fund established by this Act.

Directs the President to undertake negotiations to achieve changes in the GATT that would allow a country to impose a small uniform duty on imports to such country to be used to fund programs which assist adjustment to import competition. Requires the President to submit a report to the Congress: (1) concerning the progress of such negotiations; and (2) certifying that the GATT allows such a duty. Amends the Trade Act of 1974 to impose a duty on all articles that enter the customs territory of the United States. Sets forth specified requirements with respect to such duty.

Title X: Unemployment Compensation - Amends the Federal Unemployment Tax Act (as part of the Internal Revenue Code), to set the unemployment tax rate at a monthly 6.2 percent. Makes a conforming amendment to the Social Security Act.

Establishes a Dislocated Worker Labor Productivity Trust Fund. Appropriates unemployment tax monies to the Fund.

Allows an individual who is eligible for unemployment compensation and who is certified under the Job Training Partnership Act the option of: (1) receiving unemployment compensation; (2) receiving a reduced amount in lieu of such compensation if engaging in on-the-job training; or (3) in the case of an individual 55 years of age or older, receiving a wage supplement.