International Trade and Investment Act

(Measure passed Senate, amended)

Title I: Trade Act of 1974 Amendments - International Trade and Investment Act - Amends the Trade Act of 1974 to set forth provisions dealing with foreign trade barriers.

Directs the United States Trade Representative (USTR), through the interagency trade organization established pursuant to the Trade Expansion Act of 1962, to identify, analyze, and estimate the impact of practices that constitute significant barriers to or distortions of: (1) U.S. export of goods or services; and (2) foreign direct investment by U.S. persons, especially if it has implications for trade in goods or services. Sets forth factors to be considered by the USTR in such analysis. Directs the USTR to update the analysis annually.

Directs the USTR to submit the analysis to the appropriate congressional committees. Requires the report to include any action taken to eliminate such trade barriers, including presidential action in the case of unfair trade practices and negotiations or consultations with foreign governments. Directs the USTR to consult with Congress on trade policy priorities.

Directs Federal agencies to furnish information and other assistance to prepare such analysis.

Authorizes the President to respond to a foreign entity's unfair trade practices by taking action with respect to any goods or sector of such entity without regard to whether the goods or sector were involved in the unfair trade practice. (Current law provides that the President may take action against the products or services of the foreign entity.)

Authorizes the President to propose legislation to protect U.S. trade rights or to eliminate unfair trade practices. Requires such legislative proposals to be given priority treatment.

Requires a summary of a petition for a trade investigation by the USTR to be published in the Federal Register (currently, the entire petition must be published) if the USTR decides to begin an investigation with respect to the issues raised by the petition.

Authorizes the USTR to initiate an investigation in order to advise the President concerning the exercise of the President's authority to take action against unfair trade practices. Directs the USTR to consult with the appropriate congressional committees before beginning such an investigation.

Authorizes the USTR to delay for up to 90 days any request for consultation by a foreign entity concerning a petition for investigation into unfair trade practices. Directs the USTR to publish notice of the delay in the Federal Register and to report to Congress the reasons for the delay.

Changes the definition of "commerce" for purposes of foreign trade investigations to include: (1) services associated with international trade, whether or not related to specific goods (currently products); and (2) foreign direct investment by U.S. persons with implications for trade in goods or services. Defines "unreasonable", "unjustifiable", and "discriminatory" for purposes of such investigations.

Prohibits making information which the USTR has received in a trade investigation available to the public, if: (1) the person who provided the information makes a specified certification; (2) the USTR determines that such certification is well-founded; and (3) the person providing the information provides an adequate nonconfidential summary. Authorizes the USTR to use the information in trade investigations or to make it available to the public in a form which cannot identify the person providing the information.

Sets forth the principal U.S. negotiating objectives with respect to trade in services, foreign direct investment, and high technology products.

Directs the USTR to develop and coordinate the implementation of U.S. policies concerning trade in services. Requires Federal agencies responsible for regulating any service sector industry to advise and work with the USTR concerning: (1) the treatment afforded U.S. services sector interest in foreign markets; or (2) allegations of unfair practices by foreign governments or companies in a service sector. Authorizes the Secretary of Commerce to establish a service industries development program. Sets forth the goals of the program.

Expresses the policy of the Congress that the President shall: (1) consult with State governments on trade policy issues affecting the regulatory authority on non-Federal governments or their procurement of goods and services; and (2) establish one or more intergovernmental policy advisory committees on trade. Authorizes the President to establish policy advisory committees representing non-Federal governmental interests to provide policy advice on trade negotiating objectives, bargaining positions, and the implementation of trade agreements.

Authorizes the President to negotiate to reduce trade barriers in foreign direct investment by U.S. persons, especially if such investment has implications for trade in goods and services.

Authorizes the President to enter into agreements concerning high technology industries.

Authorizes the President to proclaim the modification, elimination or continuance of any existing duty, duty-free, excise treatment, or other additional duties with respect to specified high technology products listed in the U.S. Tariff Schedules. Provides for the termination of this authority five years after the enactment of this Act.

Expresses the sense of Congress that the Secretary of Agriculture should request the President to call for an International Trade Commission investigation of honey imports.

Title II: Withholding on Interest, Dividends, and Patronage Dividends - Amends the Tax Equity and Fiscal Responsibility Act of 1982 to delay until after June 30, 1987, the implementation of withholding of tax on interest, dividends, and patronage dividends to allow the Comptroller General to conduct a study to determine the level of compliance with respect to the collection of taxes on interest and dividends. Requires the Comptroller General to report the results of the study and the percentage of compliance of reporting interest and dividends. Prohibits, after June 30, 1987, withholding of tax on interest, dividends, and patronage dividends if 95 percent or greater compliance is found.

Prescribes rules for backup withholding on interest, dividends and patronage dividends not reported on a tax return.

Requires the filing of magnetic tape for returns requiring the reporting of dividends or interest where there are more than 50 such returns to be filed by the taxpayer.

Imposes a $50 penalty or five percent of the amount required to be included in the return (whichever is greater) for each failure to supply correct taxpayer identification numbers on interest and dividends returns. Increases penalties for substantial noncompliance to provide taxpayer information. Requires taxpayers who receive statements of interest and dividend income to furnish duplicates of such statements with their tax returns. Imposes a penalty of $50 for each failure to attach such statements to the return.

Imposes a $1,000 penalty for willfully attempting to evade or avoid tax on interest, dividends, and patronage dividends.

Expresses the sense of the Congress that the Secretary of Treasury should implement a program which matches the information returns for interest, dividends and patronage dividends received by the taxpayer with the tax returns of the taxpayer.

Expresses the sense of the Senate that not later than June 15, 1983, the Secretary of Treasury shall report to the Congress on the availability of resources to carry out any program implementing these provisions.

Authorizes appropriations.