Telecommunications Trade Act of 1986

(Reported to House from the Committee on Ways and Means with amendment, H. Rept. 99-471 (Part II))

Title I: Short Title and Findings and Purposes - Telecommunications Trade Act of 1986 - Sets forth the findings and purposes of this Act.

Title II: Actions to Achieve Fully Competitive Market Opportunities for United States Telecommunications Products and Services - Declares that the primary U.S. negotiating objectives regarding telecommunications products and services are to provide for: (1) the nondiscriminatory procurement of such products and services by foreign government-controlled entities that provide local exchange telecommunications services; (2) assurances that registration requirements for customer premises products be limited to a manufacturer's certification that the products meet certain safety standards; (3) openness in the standards-setting processes used in foreign countries; (4) the ability to have customer premises products approved and registered by type and mutual recognition of type approvals; (5) access to the basic telecommunications network in foreign countries on reasonable and nondiscriminatory terms for the provision of value-added services by U.S. suppliers; and (6) monitoring and effective dispute settlement provisions regarding the above issues. Sets forth seven secondary U.S. negotiating objectives.

Requires the U.S. Trade Representative (USTR), in consultation with the Secretary of Commerce and a specified interagency trade organization, to undertake an investigation with respect to each foreign country in order to: (1) identify and analyze those trade policies and practices that deny fully competitive market opportunities to U.S. telecommunications firms; and (2) establish specific primary and secondary negotiating objectives. Authorizes the USTR to exclude any foreign country from such investigations if the potential market in that country for U.S. telecommunications products and services is not substantial. Requires such investigations to be completed within 180 days of enactment of this Act.

Authorizes the USTR to undertake other investigations of foreign countries after the above investigations are completed if the USTR: (1) considers that there is reason to believe that a foreign country is denying fully competitive market opportunities to U.S. telecommunications firms; or (2) accepts a petition filed by an interested party alleging that such conditions exist. Requires such investigations to be completed within 180 days.

Requires the USTR to: (1) review at least annually the potential market for U.S. products and services in countries that were excluded from such investigations; and (2) undertake such an investigation if the USTR considers such market to be substantial.

Requires the USTR to report to specified congressional committees on the results of any such investigation.

Requires the President to enter into negotiations with the foreign country or countries subject to such investigations in order to enter into trade agreements which achieve the specific primary and secondary negotiating objectives established by this Act.

Provides that if the President is unable, during the negotiating period (18 months after enactment of this Act for countries that have a substantial market for U.S. telecommunications firms and 12 months for certain other countries), to enter into a trade agreement which achieves the primary and secondary negotiating objectives, the President: (1) shall take whatever actions are authorized to achieve the primary objectives not covered by agreement; and (2) may take whatever actions are authorized to achieve the secondary objectives not covered by agreement. Provides for extending the negotiating period under certain circumstances. Requires the President to take those actions which most directly affect telecommunications trade with such country.

Authorizes the President to take any of the following actions: (1) terminate, withdraw, or suspend any portion of any trade agreement entered into under the Trade Act of 1974, section 201 of the Trade Expansion Act of 1962, or section 350 of the Tariff Act of 1930; (2) take any action described in section 301 of the Trade Act of 1974; (3) prohibit the Federal Government from purchasing specified telecommunications products; (4) increase certain domestic preferences for Federal purchases of such products; (5) suspend any waiver of such domestic preferences for such products; (6) order the denial of Federal funds or credits for purchases of specified telecommunications products of any specified foreign country; or (7) suspend benefits accorded articles from specified countries under the Generalized System of Preferences under the Trade Act of 1974.

Authorizes the President to modify or terminate any such action if and only if a foreign country enters into a trade agreement that achieves the specific negotiating objective regarding which such action was taken. Requires the President to inform specified congressional committees of any such action, modification, or termination.

Requires the USTR to review annually each trade agreement to determine whether any foreign country's act, policy, or practice: (1) does not comply with the agreement; or (2) otherwise denies fully competitive market opportunities in that country to U.S. telecommunications firms. Defines trade agreement to mean: (1) a trade agreement entered into title III of this Act; and (2) a telecommunications trade agreement that was in force on the date of enactment of this Act.

Requires the USTR, if the foreign country is not in compliance with a trade agreement or denies market opportunities to U.S. firms, to take certain actions to: (1) offset such foreign act, policy, or practice; and (2) restore the balance of concessions in telecommunications trade. Sets forth the actions the USTR may take under such circumstances. Authorizes the USTR to modify or terminate any such action if and only if the foreign country has taken appropriate remedial action. Requires the USTR to inform specified congressional committees of any such action, modification, or termination.

Requires the President and the USTR to consult with the Secretary of Commerce, a specified interagency trade organization, and the private sector on what types of action to take if the President has been unable to enter into a trade agreement with a foreign country on telecommunications issues or if a foreign country is not complying with a trade agreement or otherwise denies market opportunities to U.S. telecommunications firms.

Requires the President to keep the appropriate congressional committees and other advisory committees informed with respect to: (1) the negotiating priorities and objectives for each country; (2) the assessment of negotiating prospects; and (3) any U.S. concessions.

Title III: Trade Agreement Authority and Miscellaneous Provisions - Authorizes the President, during the 42 months following enactment of this Act, to enter into trade agreements to achieve the primary and secondary negotiating objectives established under title II of this Act. Authorizes the trade agreements to provide for: (1) the harmonization, reduction, or elimination of duties or trade restrictions, barriers, or other distortions; or (2) the prohibition of, or limitations on, the imposition of duties or trade restrictions, barriers, or other distortions. Provides for the implementation of any such trade agreement through legislation or, if the agreement provides solely for unilateral concessions by a foreign country to the United States, by presidential proclamation. Provides that the benefits of any such agreement may apply solely to the parties to the agreement or not apply uniformly to all parties to such agreement.

Authorizes the President to enter into trade agreements with a foreign country to grant concessions as compensation in order to maintain the general level of reciprocal and mutually advantageous concessions if: (1) the President has taken action in response to investigations by the USTR; or (2) the USTR takes action because a foreign country is not complying with a trade agreement or otherwise denies market opportunities to U.S. firms; and (3) such action is inconsistent with U.S. international obligations. Provides for implementation of such trade agreements.