Market Economy Incentive Act

Market Economy Incentive Act - Declares that the Jackson-Vanik amendments of the Trade Act of 1974 (not including provisions requiring nonmarket economy countries to cooperate with the United States in accounting for and returning U.S. personnel missing in action in Southeast Asia), relating to the denial of nondiscriminatory treatement (most-favored-nation treatment) to nonmarket economy countries that have been determined to deny or impede its citizens the right to emigrate, shall not apply to such a country if: (1) the President designates it as an "Economy in Transition"; and (2) such designation is not disapproved by the Congress.

Makes a country eligible for designation as an "Economy in Transition" if, and only if: (1) nondiscriminatory treatment is in effect with respect to the products of such country; (2) such country has held free elections or has established guidelines for the conduct of such elections; (3) it has developed either a market economy or a transitional economy that will lead to a market economy; and (4) it has eliminated subsidies and other market distortions. Requires annual reports on such countries to the Congress.

Amends the Trade Act of 1974 to provide for congressional disapproval of "Economy in Transition" designations.