To encourage the reduction of illicit coca production in Bolivia, Colombia, and Peru.

Requires the President, with respect to each year after 1989, to determine whether: (1) there was a reduction in the quantity of illicit coca produced or in illicit coca activities in Bolivia, Colombia, and Peru; and (2) any reduction is attributable to the implementation of social or economic alternatives in such countries. Authorizes the President, if an affirmative determination with respect to such a country is made, to apply special trade treatment to articles that: (1) are products of such country; and (2) are entered or withdrawn from warehouse for consumption in U.S. customs territory in the year following the year such determination was made. Prohibits such special treatment if specified actions under the Narcotics Control Trade Act are in effect with respect to such country.

Authorizes the President to provide economic assistance to Bolivia, Colombia, and Peru to promote the production, processing, or marketing of agricultural commodity exports, excluding commodities from which narcotic and psychotropic drugs are derived. Waives provisions of the Foreign Operations, Export Financing, and Related Programs Appropriations Act that prohibit economic assistance for the growth or production in a foreign country of commodities which would compete with similar U.S. commodities with respect to such assistance.