Economic Growth and Debt Reduction Act of 1985

Economic Growth and Debt Reduction Act of 1985 - Imposes an import surcharge of 20 percent ad valorem on each import entered during surcharge period one (eight months beginning with October 1985) and 15 percent ad valorem during the first four months of surcharge period two (eight months beginning with June 1986) if the budget figures available before October 1, 1985, indicate that the Federal budget deficit for FY 1986 will be at least $40 billion less than the projected Federal budget deficit for that fiscal year. Imposes another import surcharge of 15 percent ad valorem during the last four months of surcharge period two and ten percent ad valorem during surcharge period three (eight months beginning with February 1986) if an import surcharge was imposed during FY 1986 and if the budget figures for FY 1987 indicate that the Federal budget deficit for FY 1987 will be at least $40 billion less than the projected Federal budget deficit for that year.

Authorizes the President to waive or reduce the import surcharge with respect to certain developing countries if: (1) the President considers that such exemption, reduction, or both is necessary to alleviate the international trade and debt problems of such a country that threatens the stability of the international financial system; and (2) that country has given assurances that, as a condition of such reduction or exemption, it will provide equitable and reasonable access to its markets and resources and will refrain from engaging in unreasonable import practices.