A bill to deny most-favored-nation treatment to the products of Iran and Libya until the governments of those countries renounce terrorism and take other appropriate actions.

Denies most-favored-nation treatment to Iranian and Libyan products.

Authorizes the President to reinstate such treatment if he determines and reports to the Congress that such reinstatement would be in the national interest of the United States. Prohibits the President from making such determination unless he is satisfied that: (1) Libya renounces the use of terrorism and will abide by the rules of international law with respect to freedom of navigation; and (2) Iran meets such criteria and will participate in good faith negotiations to end the hostilities in the Persian Gulf.