Narcotics Control Trade Act of 1996

Narcotics Control Trade Act of 1996 - Amends the Trade Act of 1974 to revise requirements for the tariff treatment of products of uncooperative major drug producing or drug-transit countries. Requires the United States Trade Representative (USTR) to report annually to the appropriate congressional committees on: (1) the bilateral trade relationship between the United States and each major illicit drug producing country and each major drug-transit country, including the volume of imports entering the United States from that country; and (2) an assessment with the Secretary of State of the impact of imposing certain trade sanctions against such countries on the economy of the United States and that country, and on the country's cooperation with the United States in achieving the objectives of the United Nations Convention Against Illicit Traffic in Narcotic Drugs and Psychotropic Substances.

Requires the President to impose one or more existing trade sanctions recommended by the USTR against countries not certified as in compliance with the anti-drug producing and trafficking objectives of the Convention. Adds to existing sanctions: (1) denial of trade benefits under any agreement between the country in question and the United States establishing a free trade area; and (2) refusal to negotiate for purposes of establishing such a free trade area.

Requires the President to invoke all applicable defenses, including exceptions for measures necessary to protect U.S. national security and to protect human, animal, or plant life, or health, if proceedings are initiated by a country against the United States in the World Trade Organization (WTO) or under the North American Free Trade Agreement (NAFTA) with respect to such trade sanctions.