Comprehensive Fair Trade and Export Promotion Act of 1985

Comprehensive Fair Trade and Export Promotion Act of 1985 - Title I: Countervailing and Antidumping Duties - Amends the Tariff Act of 1930 to waive the requirement that the International Trade Commission (ITC) make a preliminary determination of injury in a countervailing duty investigation if the ITC has found injury in an antidumping or countervailing duty investigation with respect to the same merchandise during the year preceding the start of the new investigation.

Authorizes the Administering Authority to suspend countervailing duty investigations if the government of the subsidizing country or the chief exporter of the subsidized merchandise agrees to eliminate the subsidy after the date on which the investigation is suspended.

Includes within the definition of countervailable subsidy the provision of capital, loans, loan guarantees, goods, or services at preferential rates or on terms inconsistent with commercial considerations.

Title II: Relief from Injurious Industrial Targeting and Unfair Trade Practices - Amends the Trade Act of 1974 to provide that injurious industrial targeting may trigger import relief actions. Defines injurious industrial targeting to mean any combination of coordinated government actions: (1) which are bestowed on a specific enterprise, industry, or group to become more competitive in the export of any class or kind of merchandise; and (3) which cause or threaten to cause material injury.

Authorizes the President to: (1) suspend, withdraw, or prevent application of the benefit of trade agreement concessions with the foreign country or instrumentality involved; (2) direct customs officers to assess duties or impose other import restrictions on the on the products of such country or instrumentality or to assess fees or impose restrictions on the services of such country or instrumentality for such time in such amount, and to such degree as the President deems appropriate; (3) negotiate agreements to offset the burden or restrictions on U.S. commerce; (4) submit proposed legislation to implement any government action which would restore or improve the international competitive position of the injured or threatened industry; or (5) any combination of such actions.

Requires the U.S. Trade Representative (USTR), in conducting an import relief investigation initiated by petition to the USTR, present detailed questionaires to the foreign government or enterprise involved in order to obtain information concerning the allegations in the petition. Directs the USTR to verify any such information which the USTR relied upon in making any determinations. Provides for relying on the best information available, which may be the information contained in the petition, if the foreign government fails to provide information or provides insufficient or unsatisfactory information.

Requires the USTR to make a preliminary determination within five months of the start of such an import relief investigation on whether there is reason to believe that import relief is warranted. Authorizes the USTR to take certain actions based on the preliminary finding. Requires the final determination to be made within 11 months of the start of the investigation. Requires the USTR to determine what actions to take if the final determination is that import relief is warranted except that specific actions are required if injurious industrial targeting is found to exist. Requires the USTR to consult with the petitioner and representatives of the affected domestic firms and workers if the final determination is affirmative. Requires the USTR to report to the Congress if the final determination is affirmative and the USTR declines to take any action. Terminates any preliminary import relief if the final determination is negative. Requires publication in the Federal Register of such preliminary and final determinations.

Requires the USTR, if it makes a preliminary finding that injurious industrial targeting exists, to: (1) establish an advisory committee; and (2) formulate, in consultation with such advisory committee, proposals which would restore or improve the competitive position of affected domestic industries.

Requires the USTR to notify the ITC when it initiates an investigation of injurious industrial targeting. Requires the ITC to make a preliminary determination within 60 days of receiving such notice of whether there is a reasonable indication that because of sales or likely sales of the merchandise which is the subject of the investigation: (1) an industry in the United States is materially injured or is threatened with material injury; or (2) the establishment or growth of an industry in the United States is materially retarded. Requires the ITC to make a final determination of whether such circumstances exist by: (1) 45 days after the affirmative final determination of the USTR if the USTR's preliminary determination is affirmative; or (2) 75 days after an affirmative final determination of the USTR if the USTR's preliminary determination is negative. Makes the ITC's determination subject to review by the U.S. Court of International Trade if such determination were made under the countervailing or antidumping duty provisions of the Tariff Act of 1930.

Defines material injury and threat of material injury.

Requires the USTR to submit to the President any proposed administrative action and any proposed legislation to restore or improve the competitive position of the injured industry if the preliminary and final determinations are that injurious industrial targeting has occurred. Provides for expendited consideration of such legislation. Requires the USTR to report to the Congress on the actions the USTR will take to offset the material injury or threat of material injury from the injurious industrial targeting.

Authorizes the USTR to enter into a settlement agreement with the foreign country or entity involved in lieu of taking other actions if: (1) such agreement completely eliminates the material injury or threat of material injury from the injurious industrial targeting; and (2) such agreement is approved by the petitioner if the investigation began because of a petition.

Title III: Export Promotion - Amends the Export Trading Company Act of 1982 to direct the Board of Directors of the Export-Import Bank to insure that a significant share of loan guarantees provided to export trading companies services to promote exports from small, medium-size, and minority businesses or agricultural concerns. Requires the Board to report within one year on the implementation of such requirement.

Directs the Secretary of the Treasury to develop a program of mixed credit financing for exports to compensate for the effects of subsidized financing by by U.S. trading partners.

Requires U.S. Ambassadors to those countries that are important U.S. trading partners and that have significant potential for U.S. export sales to report annually to the President and the Congress on their embassies' efforts to assist U.S. industries in expanding export sales to, and in improving their market position relative to other foreign competitors in, those countries.

Amends the Trade Act of 1974 to direct the USTR to analyze and assess the overall reciprocity accorded to U.S. products, services, and investment by each of the U.S. major trading partners and the impact which failures to provide reciprocity have on the major U.S. product sectors. Requires specified congressional committees, within 90 days of receiving the national trade estimate, to prepare and issue a joint report setting forth: (1) the views of the committees on the negotiating priorities for reducing or eliminating trade barriers; and (2) the recommendations of the committees on certain actions that should be taken.

Title IV: International Negotiations - Expresses the sense of the Congress that the President should call for the convening of an international monetary conference to develop options for reforming institutional mechanisms to decrease the disparity among, and to prevent dramatic fluctuations in the value of, major currencies.

Expresses the sense of the Congress that the President should institute multilateral trade negotiations under the GATT to: (1) resolve those issues that were not resolved in earlier negotiations; (2) development multilateral disciplines in those areas where trade problems have emerged or are becoming more acute; (3) focus on improving the GATT dispute settlement mechanisms; (4) place a high priority on bringing developing countries into full participation in the international trading community; and (5) ensure that all developed countries share equally the responsibility for advancing the economies of developing countries.

Title V: Improving American Business Competitiveness - Amends the Economic Recovery Tax Act of 1981 to establish a permanent research and development tax credit. Expands the tax credit for university basic research to an amount equal to: (1) 25 per cent of the excess of the qualified research expenses for the taxable year over the base period research expenses; and (2) 20 percent of the amount of incremental university basic research expenditures.