Comprehensive Trade Policy Reform Act of 1986

Comprehensive Trade Policy Reform Act of 1986 - Title I: Trade Law Amendments - Subtitle A: Enforcement of United States Rights Under Trade Agreements and Response to Certain Foreign Trade Practices - Chapter 1: Amendments to the Trade Act of 1974 - Amends The Trade Act of 1974 to require presidential action if the President or the U.S. Trade Representative (USTR) determines that U.S. rights under any trade agreement are being denied or a foreign country's act, policy, or practice: (1) is inconsistent with, or denies benefits to the United States under, any trade agreement; or (2) is unjustifiable and burdens or restricts U.S. commerce. Requires the President, unless the contracting parties to the General Agreement on Tariffs and Trade (GATT) make a specified finding or the President makes a specified finding, to: (1) suspend or remove certain benefits of the trade agreement, impose restrictions on the foreign country involved, or withdraw benefits under the Generalized System of Preferences; or (2) restrict imports of services; or (3) both (1) and (2); and (4) take all other appropriate and feasible actions to enforce such rights or end such act, policy, or practice. Requires such action to be devised to affect goods or services of the foreign country involved in an amount equivalent to the amount that such country restricts U.S. commerce.

Requires the President to take all appropriate actions to eliminate, and/or to offset the effects of, export targeting if: (1) the USTR determines that a foreign country practices export targeting; and (2) the International Trade Commission (ITC) determines that imports of targeted merchandise are injuring a U.S. industry. Defines export targeting as any government plan consisting of a combination of actions that are bestowed on a specific enterprise or group of enterprises which improves the competitiveness of exports by such enterprise or group. Sets forth the alternative actions available to the President. Requires the President to report to the Congress on each action taken or the reasons no action was taken to: (1) enforce U.S. rights or eliminate unfair trade acts, policies, or practices; or (2) eliminate or offset the export targeting policy or practice.

Requires the President to take all appropriate and feasible action to eliminate a foreign country's act, policy, or practice which the President or the USTR finds to be unreasonable or discriminating and that burdens or restricts U.S. commerce.

Prohibits the President from taking action under the provisions relating to enforcement of U.S. rights if other action is required because such country has an excessive or unwarranted trade surplus.

Requires the President, before taking any such action to restrict imports, to consider the likely impact that such action will have on U.S. agricultural exports.

Requires the President, within 30 days of receiving the USTR's recommendation to take action to enforce U.S. trade rights, to determine what action to take and to implement such action. Authorizes the President to delay such determination and implementation for up to 90 days if: (1) either the petitioner or the industry that would benefit from such action requests the delay; or (2) the President determines that substantial progress towards a solution is being made.

Requires the USTR to notify the ITC of investigations involving alleged export targeting. Requires the USTR to make a determination regarding such allegations within 180 days of the start of the investigation. Terminates the investigation if the USTR determines no export targeting exists or the ITC determines that imports of the targeted merchandise caused no material injury to a U.S. industry or to the establishment of a U.S. industry. Requires the ITC to make such determination within 180 days of receiving notice of the allegation from the USTR. Defines material injury and sets the standard for determining whether a material injury has been incurred. Provides for remedies under the countervailing and antidumping provisions of the Tariff Act of 1930 if appropriate.

Provides for the presentation of views by interested persons concerning actions to enforce U.S. trade rights.

Requires the USTR to direct certain inquiries to the foreign countries involved in an investigation of unfair trade practices. Authorizes the USTR to request the foreign countries to provide documentation or permit verification of its information. Authorizes the USTR to disregard such information and instead use the best information available if the information provided by the foreign country is not timely, is incomplete, or is insufficiently verified.

Requires the USTR to consult with the petitioner before delaying consultations with a foreign country in cases involving enforcement of U.S. trade rights. Requires the USTR to give at least 30 days notice for the presentation of views by interested persons in such cases before making recommendations to the President on enforcement actions. Requires the USTR to consult with business and labor representatives of the affected industry and with other interested persons on the nature of the appropriate remedial action in cases involving export targeting.

Requires the USTR to consult with interested persons within 90 days of identification of a foreign market access barrier act, policy, or practice that has a significant adverse impact on U.S. exports if such foreign act, policy, or practice is likely to be an abridgement of U.S. rights under a trade agreement and is not otherwise the subject of an investigation. Requires the USTR to initiate an investigation if the USTR determines that: (1) such consultations indicate that an enforcement action would likely result in expanded U.S. export opportunities; (2) an enforcement action would not likely result in U.S. exports suffering significant adverse effects; and (3) it is in the national economic interest to initiate such an investigation.

Requires the USTR, subject to certain consultation requirements, to determine: (1) whether U.S. rights under a trade agreement are being denied or an unfair trade act, policy, or practice exists; and (2) recommend to the President what action to take if the determination under (1) is affirmative, and, in cases involving export targeting the ITC found that injury, the threat of injury, or industry retardation exists.

Changes the timetable for the USTR to determine whether action is required and to make recommendations to the President to: (1) 30 days after conclusion of dispute settlements or nine months after initiation of the investigation whichever occurs first, if a trade agreement other than the Subsidies Agreement is involved; or (2) nine months (11 months in export targeting cases) in any other case. Retains the current timetable for cases involving export subsidies, domestic subsidies, and combinations of export and domestic subsidies.

Authorizes the President to modify or terminate an action taken to enforce U.S. trade rights if: (1) the contracting parties to the GATT make specified findings; or (2) the President determines that the foreign act, policy, or practice has been eliminated or is being phased out or that the action is not effective or that its continuation is not in the national economic interest. Requires the USTR to review and assess biennially the results of actions taken to enforce U.S. rights. Provides for publication of, and notification of the Congress of, any modification or termination.

Requires the USTR to submit the annual national trade estimates to the House Foreign Affairs Committee. Requires such estimates to include, beginning on October 30, 1986, an identification of those acts, policies, and practices included in the analysis that had significant adverse impact on U.S. exports.

Adds a new subchapter to the Trade Act of 1974 that creates special provisions regarding trade deficits. Requires the ITC to: (1) determine whether each major exporting country is an excessive trade surplus country for 1985 and for 1987 through 1990; and (2) determine if the percentage obtained by dividing the U.S. balance of trade deficit by the U.S. gross national product is less than one and one-half percent. Requires the ITC to report such determinations to the USTR.

Requires the USTR, within 15 days of receipt of such report, to determine whether each major exporting country identified as an excessive trade surplus country maintained a pattern of unjustifiable, unreasonable, or discriminatory trade policies or practices that have a significant adverse effect on U.S. commerce and contribute to the excessive trade surplus of that country. Sets forth factors to be considered in making such determination. Provides that the USTR need not make such determinations with respect to countries with a percentage of less than one and one-half percent. Defines "excessive trade surplus country" as a major exporting country which has: (1) a bilateral export percentage (the value of nonpetroleum exports to, divided by the value of nonpetroleum imports from, the United States) of more than 175 percent; and (2) a bilateral trade surplus (an excess of the value of nonpetroleum exports to, divided by nonpetroleum imports from, the United States) that exceeds the bilateral trade surplus for such country for the year. Sets forth surplus reduction goals for major exporting countries designated as excessive and unwarranted trade surplus countries.

Requires the USTR to try to negotiate a bilateral trade agreement to achieve such surplus reduction goals with each foreign country that is designated as an excessive and unwarranted trade surplus country.

Requires the President, if the USTR's negotiations do not achieve such surplus reduction goals within a specified time, to: (1) suspend, withdraw, or prevent the application of benefits of trade agreement concessions with respect to such country; (2) impose duties or other import restrictions on such country's products; (3) negotiate agreements with such country; and/or (4) implement other governmental action which would restore or improve the competitive position of U.S. industries with that country. Requires the President to impose such import quotas on imports from such country as are necessary to meet the reduction for the next year if the action taken under (1) through (4) does not achieve the surplus reduction objective for that year.

Authorizes the President, subject to congressional approval, to: (1) reduce the surplus reduction goal for any excessive and unwarranted trade surplus country if the President considers that such country cannot meet the goal without suffering economic harm and develops an alternative plan for achieving such goal; or (2) waive the taking of other action with respect to an excessive and unwarranted trade surplus country if the President considers that such action would cause substantial harm to the national economic interest and develops an alternative plan for achieving the surplus reduction goal.

Provides for the administration of the provisions relating to trade deficits.

Chapter 2: International Trade in Telecommunications Products and Services - Telecommunications Trade Act of 1986 - Sets forth the findings and purposes of this Act.

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 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 under a specified section 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.

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 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.

Subtitle B: Relief from Injury Caused by Import Competition, Subsidies, Dumping, and Unfair Trade Practices - Chapter 1: Relief from Injury Caused by Import Competition - Requires petitions for import relief to: (1) include a statement describing the specific purposes for which import relief is being sought; (2) if critical circumstances are alleged to exist, include information supporting that allegation; and (3) if desired by the petitioner, request the preparation of an industry adjustment plan.

Authorizes petitioners alleging import competition from a perishable product to request emergency action.

Requires the USTR, if the petitioner alleges that critical circumstances exist, to make a preliminary determination within 30 days on whether such circumstances are likely to exist.

Provides that the USTR, if the preliminary determination is affirmative: (1) shall order the suspension of the liquidation of all articles subject to such determination; and (2) may order the posting of a security deposit for the entry of articles subject to such suspension. Sets forth the duration of such actions. Prohibits taking such actions with respect to perishable products. Declares that critical circumstances exist if a substantial increase in the quantity of imports of an article over a relatively short time has led to circumstances in which a delay in the taking effect of import relief would cause harm that would significantly impair the effectiveness of such relief.

Requires the USTR, if the petitioner requests an industry adjustment plan, to establish an industry advisory group which shall prepare the adjustment plan for the industry concerned and submit the plan to the ITC. Provides that such plan should contain: (1) an assessment of the industry's current problems and a strategy to enhance its competitiveness; (2) objectives and specific steps that could be undertaken to improve the industry's competitiveness; and (3) actions that Federal agencies could take to help achieve those objectives and to remedy the dislocation to workers and communities caused by import competition.

Requires the USTR to try to obtain, on a confidential basis, information from workers and firms on: (1) how the workers and firms intend to act upon the objectives and steps specified in the plan; and (2) any other actions the workers or firms intend to take to foster such objectives. Requires the USTR to transmit such information to the ITC, the Secretary of Labor, and the Secretary of Commerce on a confidential basis.

Requires the ITC to investigate whether an article is being imported in such increased quantities as to be a substantial cause of serious injury, or threat of injury, to the domestic industry producing an article like or directly competitive with the imported article upon: (1) the filing of a petition; (2) the request of the President or the USTR; (3) resolution of either the House of Ways and Means Committee or the Senate Finance Committee; or (4) its own motion. Sets forth economic factors that the ITC shall consider in making its determination. Defines "domestic industry" for purposes of making such determination.

Requires the ITC, in the course of any such investigation, to: (1) investigate and report on efforts by firms and workers in the industry to increase the industry's competitiveness; (2) investigate any factor which may be contributing to increased imports of the article under investigation and notify the appropriate agency if the ITC has reason to believe that dumping is causing the increased imports; and (3) hold public hearings on the subject of the investigation.

Requires the ITC, if it finds that serious injury or threat of serious injury exists, to: (1) determine the import relief that is necessary to prevent or remedy that injury or threat; and (2) if the petition alleged critical circumstances, determine if critical circumstances exist. Requires the ITC to report its findings to the USTR within six months of the date the petition is filed. Sets forth information to be included in the report, including a copy of the industry adjustment plan and an estimate of the effect of the recommended import relief on consumers and competitors in the domestic markets.

Requires the ITC, within 48 hours of finding that serious injury or the threat of serious injury exists with respect to any article, to notify the Secretary of Labor and the Secretary of Commerce of: (1) the finding; (2) the identity of the domestic producers and products within the scope of the finding; and (3) all nonconfidential information obtained by the ITC that may be relevant to a determination of eligibility for adjustment assistance.

Prohibits another import relief investigation with respect to the same subject matter unless one year has passed since the ITC's report or the ITC determines that good cause for such repeat investigation exists.

Requires the USTR, after receiving an ITC report with an affirmative finding of injurious increased imports, to provide import relief (for up to five years) in order to prevent the injury and to facilitate the industry's orderly adjustment to competition, unless providing import relief is not in the national economic interest. Authorizes the USTR to condition the provision of import relief on compliance with the industry adjustment plan. Sets a 60-day deadline for the USTR to make such determinations. Sets forth factors the USTR shall consider in determining whether to provide import relief. Authorizes the USTR to request a supplemental report from the ITC which shall be provided by the ITC within 30 days.

Requires the USTR to submit to the Congress for review: (1) the determination of what import relief to provide (if such relief differs from the ITC's recommendation, the reasons for such difference) and its likely impact on U.S. agricultural exports; (2) if the USTR determines that import relief is not in the national economic interest, the reasons for such determination; or (3) notice of and the rationale for any other import relief action implemented by the USTR.

Requires the implementation of the import relief recommended by the ITC if the Congress vetoes a USTR determination not to provide import relief or to provide import relief different from the import relief recommended by the ITC.

Requires the import relief to be implemented within a specified time unless the USTR decides to negotiate an orderly marketing agreement.

Authorizes the USTR to negotiate orderly marketing agreements and, after such agreements take effect, to suspend or terminate any import relief previously provided. Authorizes the USTR to provide other import relief if after being negotiated an orderly marketing agreement does not continue to be effective.

Provides for treating as an increase in duty the suspension of: (1) certain tariff provisions with respect to an article; and (2) the designation of any article as eligible for tariff preferences. Prohibits such suspension from being made by the USTR or recommended by the ITC unless specified conditions are met.

Sets forth regulatory authority for providing import relief.

Provides for the extension, modification, and termination of import relief provisions.

Requires the ITC to review, and report annually to the USTR on, developments with respect to an industry receiving import relief so long as such relief remains in effect. Requires the ITC to advise the USTR on the probable economic effect on the industry concerned of the extension, reduction, or termination of the import relief.

Prohibits the ITC from making an import relief investigation with respect to an article which has received import relief until two years after such relief was provided.

Authorizes the USTR to take import relief actions only after consideration of the relation of such actions to U.S. international obligations. Imposes certain conditions on treating production located in a major geographic areas as the "domestic industry" for import relief purposes.

Authorizes an import relief petitioner who alleged injury from imports of a perishable product to file, in addition, a request with the Secretary of Agriculture that emergency action be taken with respect to that product.

Requires the Secretary of Agriculture to decide, within 20 days: (1) whether there is reason to believe that the perishable product is being imported in such increased quantities as to be a substantial cause of, or threat of, serious injury to the competing domestic industry; and (2) if there is such reason to believe, whether emergency action is warranted.

Provides for refiling after a specified time a request for emergency action if the Secretary denies the first request.

Requires the Secretary of Agriculture, if the Secretary decides to grant such request, to: (1) determine the method and extent of emergency action to be imposed; (2) notify the USTR of such request; and (3) unless the USTR decides within seven days that such action is not in the national economic interest, order the Commissioner of Customs to take such action.

Defines emergency action as: (1) an increase in, or the imposition of, a duty; and/or (2) a modification of, or the imposition of, a quota on imports of such article.

Imposes different emergency actions for perishable products from Israel or certain Caribbean countries.

Provides for termination of an emergency action if: (1) changed circumstances warrant such termination; (2) the ITC reports that it did not find serious injury or the threat of serious injury to the industry; (3) the denial of import relief becomes final; or (4) other import relief provisions become effective.

Amends the Trade and Tariff Act of 1984 to add Chinese gooseberries to the definition of the term perishable products.

Establishes in the Treasury an Adjustment Assistance Trust Fund that shall consist of the funds generated by certain import relief provisions and by the public auctioning of import licenses. Requires the amounts in the Trust Fund to be used for trade adjustment assistance for workers and firms.

Requires the Secretary of Labor to give expedited consideration to a petition for certification of eligibility for adjustment assistance by workers in a domestic industry which the ITC, within the three years preceding the petition, has determined was seriously injured by imports.

Requires the Secretary of Commerce to give expedited consideration to a petition for certification of eligibility for adjustment assistance by a domestic industry which the ITC, within the three years preceding the petition, has determined was seriously injured by imports.

Transfers from the President to the USTR the authority to take action in response to an ITC finding of market disruption with respect to imports from a non-market economy country (defined as a country dominated or controlled by communism).

Declares that market disruption exists within a domestic industry whenever an article is being imported in such increased quantities as to be an important cause of, or threat of, material injury to the competing domestic industry. Sets forth factors the ITC shall consider in determining whether market disruption exists. Authorizes the ITC to recommend, in addition to other relief, a variable tariff based on a comparison of average domestic producer prices and average import prices.

Authorizes the USTR to deny import relief with respect to imports from non-market economy countries only if the provision of such relief would have a serious negative impact on the domestic economy.

Chapter 2: Amendments to the Countervailing and Antidumping Duty Laws - Amends the Tariff Act of 1930 to provide that certain producers of raw agricultural products may be considered part of the industry producing processed agricultural products for purposes of bringing countervailing and antidumping duty complaints. Sets forth the criteria such producers must meet. Defines "material injury" for purposes of complaints involving imports of a raw agricultural product and products processed from such raw agricultural product. Classifies a coalition or trade association which represents either processors or processors and producers as interested parties in such investigations.

Includes within the definition of domestic subsidy (and therefore subject to countervailing duties) the provision of capital, loans, or loan guarantees at preferential rates and the provision of goods or services on terms inconsistent with commercial considerations.

Requires the ITC, in determining whether material injury occurred in an antidumping or countervailing duty case, to assess cumulatively the volume and effect of imports from two or more of countries of like products if such imports compete with each other and with like products of the domestic industry in the U.S. market and if such imports: (1) are subject to any countervailing or antidumping duty; or (2) during the preceding 12 months were subjected to a final order, suspension agreement, or quantitative restraint resulting from such an investigation.

Adds to the factors that the ITC must consider in determining whether threat of material injury exists: (1) evidence of export targeting by a foreign government; (2) the extent to which the United States is a focal point for exports because of market barriers in third countries; and (3) in dumping cases, dumping findings in other countries against the same exporter. Requires the ITC in such dumping cases to request information from the foreign exporter or U.S. importer on threat of material injury. Authorizes the ITC to draw adverse inferences if such information is not produced.

Imposes special rules for determination of the existence or threat of material injury involving fungible products.

Includes in the definition of "subsidy" (for antidumping and countervailing duty purposes) any resource input subsidy. States that a "resource input subsidy" is found to exist if: (1) (a) a product is provided or sold by a government-regulated or controlled entity within a country for input use within such country at a domestic price that is lower than the fair market value of the input product and is not freely available to U.S. producers; and (b) a product would, if sold at the fair market value, constitute a significant portion of the total cost of the manufacture or production of the merchandise in or for which the input product is used; or (2) under specified circumstances, the right to remove or extract such product is provided or sold by a government or a government-regulated or controlled entity within a country. Sets forth the method of calculating the amount of a resource input subsidy.

Defines "fair market value" and "input use."

Requires injury determinations by the ITC to be made in all countervailing duty investigations relating to the existence of resource input subsidies.

Requires the administering authority to adjust the foreign market value of an import if the administering authority determines in an antidumping investigation that: (1) a dumped input product is incorporated into or used in the manufacture or production of the import subject to the investigation; and (2) the manufacturer or producer of such import purchased the dumped input product for a price that is less than the adjusted foreign market value of that product.

Defines "dumped input product" to be merchandise subject to an antidumping duty order or to a specified international agreement.

Authorizes any domestic producer of an article that is like a "component part" or a "downstream product" to petition the administering authority to designate a downstream product for monitoring. Defines "component part" to mean an import that: (1) during the five years preceding the petition has been subject to certain countervailing or antidumping duty orders or agreements; and (2) is used routinely as a major part in other manufactured articles. Defines "downstream product" to mean any import into which is incorporated any component part. Sets forth information to be included in the petition.

Requires the administering authority, within 14 days of receiving the petition, to determine whether there is a reasonable likelihood that imports of the downstream product will increase as an indirect result of any diversion of such component parts. Sets forth factors to be considered in making such determination. Requires the administering authority to notify the ITC if such determination is affirmative. Requires the ITC to begin monitoring the levels of trade in downstream products. Requires the ITC to make quarterly reports based on such monitoring. Requires the administering authority to: (1) consider the reports in determining whether to initiate an antidumping or countervailing duty investigation on any downstream product; and (2) request the ITC to stop monitoring such product if the reports indicate that imports are not increasing and there is no reasonable likelihood of diversionary dumping of component parts.

Creates a right to a private remedy for injury resulting from dumping. Authorizes eligible parties to sue for damages in the Court of International Trade: (1) any manufacturer of the dumped merchandise; and (2) any exporter, importer, or consignee who knew or had reason to know that the merchandise was sold at less than fair value.

Provides that merchandise imported by or for the use of Federal agencies is not exempt from the imposition of countervailing or antidumping duties.

Changes the limits imposed on access to confidential information obtained by the administering authority. Requires the administering authority to make all such information available under protective order. Imposes a 14-day deadline for determining whether to release such information. Prohibits the administering authority from considering confidential information in its investigation if the person submitting such information refuses to disclose it pursuant to a protective order. Imposes certain other requirements on service of such information, notification of the submission of such information, and timely submissions.

Prohibits antidumping and countervailing duties from being treated as regular customs duties for drawback purposes.

Requires persons making submissions to the administering authority or the ITC in antidumping or countervailing duty proceedings to certify that such submission is accurate and complete to the best of that person's knowledge.

Chapter 3: Intellectual Property Rights - Makes unlawful the unauthorized importation or unauthorized sale within the United States after importation of articles that: (1) infringe a valid and enforceable U.S. patent or copyright; or (2) are made under, or by means of, a patented process. Makes it unlawful to import or sell within the United States after importation articles that infringe a valid and enforceable U.S. trademark, if the manufacture or production of such article was unauthorized. Makes it unlawful to import a semiconductor chip product in a manner that constitutes infringement of a registered mask work. Declares that such prohibitions shall apply only if there is an existing or nascent U.S. industry relating to the articles or intellectual property.

Authorizes the ITC to terminate an investigation before determining whether there is a violation by issuing a consent order or on the basis of a settlement agreement.

Requires the ITC to make a determination with regard to a petition alleging unfair import practices within 90 days (150 days in more complicated cases) of the publication of notice of the investigation. Authorizes the ITC to grant preliminary relief with respect to violations involving intellectual property to the same extent as authorized under the Federal Rules of Civil Procedure.

Authorizes the ITC to issue cease and desist orders in addition to exclusion orders. Increases the penalty for violations of such orders.

Transfers from the President to the USTR the authority to overrule for policy reasons ITC determinations of unfair import practices.

Provides for default judgments against nonrespondents in unfair import practice cases unless the ITC determines that specified circumstances preclude such judgments. Authorizes the ITC to promulgate rules that establish sanctions for abuse of discovery and abuse of process.

Imposes the burden of proof on the petitioner in cases where the petitioner has previously been found in violation of the provision prohibiting unfair import practices and the petitioner is asking the ITC: (1) to find that the petitioner is no longer violating the section; or (2) for a modification or recission of the penalty imposed on such petitioner. Sets forth the grounds for granting such relief.

Prohibits disclosure (except to certain ITC and Customs Service employees) of confidential information submitted to the ITC during the course of an investigation without the consent of the petitioner.

Requires the USTR to prepare a list annually of those foreign countries that maintain the most significant barriers to market access for U.S. persons that rely on intellectual property protection. Requires the USTR, in order to create such list, to: (1) identify and analyze the market barriers of a country to certain intellectual property that is exported or licensed by U.S. persons that rely on intellectual property protection; (2) estimate the trade-distorting impact on U.S. commerce of such country's acts, policies, or practices that are contained in the annual report on market barriers; (3) decide whether the potential market in that country is substantial; and (4) take into account certain other information submitted by persons who rely on intellectual property protection. Designates countries which have the largest potential or have the most onerous market barriers as priority countries for negotiating purposes. Authorizes the USTR to exempt a foreign country from such negotiations if negotiations would be detrimental to U.S. interests.

Requires the President to direct the USTR to enter into negotiations and consultations with priority countries according to a specified timetable in order to seek trade agreements which reduce or eliminate market barriers for U.S. persons who rely on intellectual property protection. Authorizes the President, within five years of enactment of this Act, to enter into agreements which meet such objective.

Authorizes the President to take certain other actions if the President is not able to enter into such an agreement with a priority country within a specified time. Requires the President to report to the Congress on a biennial basis on efforts to obtain market access in priority countries. Sets forth information to be included in such report.

Requires the USTR to consult with the appropriate congressional committees, Federal agencies, private persons, and certain advisory committees: (1) before identifying the market barriers, determining priority countries, and establishing the timetable; (2) in conducting negotiations; (3) in developing the report; and (4) in determining certain other actions.

Requires the principal negotiating objectives with respect to intellectual property rights to be: (1) to seek enactment and effective enforcement by foreign countries of laws that protect intellectual property; and (2) to develop and strengthen international rules and dispute settlement procedures against trade-distorting practices arising from inadequate national protection and enforcement of intellectual property rights.

Subtitle C: Trade Negotiating Objectives and Authority - Amends the Trade Act of 1974 to provide that the overall trade negotiating objectives of the United States are to: (1) achieve a more open, fair, and nondiscriminatory international trading system; (2) obtain equitable and reciprocal competitive opportunities for U.S. manufacturing, mining, agriculture, and services in foreign markets; and (3) expand and improve the rules and procedures of the GATT. Sets forth the principal U.S. trade negotiating objectives. Declares that the overall and principal trade negotiating objectives are to be achieved through multilateral trade agreements (unless other agreements would be more effective) that provide for: (1) the reduction or elimination of trade barriers; and (2) the development, clarification, or extension of principles governing international trade.

Authorizes the President, through January 3, 1989, to enter into trade agreements and to proclaim modifications or continuation of existing duties or duty-free treatment as of January 1, 1987, or additional duties as required or appropriate.

Extends the authority of the President to enter into nontariff barrier agreements or bilateral tariff agreements until January 3, 1989.

Extends the President's authority to enter into tariff and nontariff barrier agreements for an additional two years (until January 3, 1991) if, by November 3, 1988, the USTR certifies to specified congressional committees that: (1) sufficient progress has been made under the trade agreement authority to justify the continuation of negotiations; and (2) such continuation is likely to achieve the overall and principal U.S. negotiating objectives.

Prohibits the President from proclaiming, under the President's tariff agreement authority, the reduction or elimination of any duty on any article that, on the date of enactment of this Act, was not designated an eligible article under the Generalized System of Preferences. Requires congressional approval of any provision of a trade agreement entered into under the President's tariff agreement authority that reduces or modifies the duty on such articles.

Requires the Commisisoner of Customs, in the implementation of certain bilateral trade agreements with a foreign country, to prevent the transshipment through such country of articles subject to quantitative import restrictions under U.S. law.

Requires certain additional information to be included in the consultations with congressional committees prior to entry into trade agreements.

Requires the President's statement to the Congress accompanying a trade agreement to include a statement: (1) that the agreement achieves the U.S. overall and principal negotiating objectives; and (2) the President's reasons as to how and to what extent the agreement achieves such objectives and why and to what extent the agreement does not achieve other objectives.

Requires the President to recommend to the Congress in the implementing bill submitted with respect to a trade agreement that the benefits and obligations of such agreement apply solely to the parties to such agreement, if such application is appropriate and consistent with the terms of the agreement.

Prohibits any nontariff trade agreement from entering into force from the date of enactment of this Act until the earlier of: (1) a specified international conference on the exchange rate system is convened; or (2) the President reports to the Congress that such conference cannot be convened because of unwillingness of a major currency country to participate.

Authorizes the President, whenever certain import relief measures or tariff reclassifications take place, to: (1) enter into trade agreements to grant new concessions as compensation in order to maintain the general level of reciprocal and mutually advantageous concessions; and (2) proclaim tariff modifications or continuances as necessary to carry out such agreement. Authorizes such compensatory actions only if necessary to meet U.S. international obligations.

Grants the President the authority, for five years, to enter into tariff agreements with Canada relating to, and to proclaim tariff modifications or eliminations on: (1) frozen cranberries; (2) dialysis cyclers; (3) packaging goods for tea; (4) dried fababeans; (5) cat litter; (6) mechanics' tool boxes; (7) medical tubing; (8) synthetic fireplace materials; (9) spirits; (10) miners' safety lamps, components, and battery chargers; and (11) computerized paper cutter control retrofit units. Requires the President to exercise such authority only to the extent that Canada grants equivalent tariff reductions.

Requires certain private sector advisory committees to report to the Congress on the extent each trade agreement achieves U.S. trade negotiating objectives. Requires each report by a private sector advisory committee on a trade agreement to be submitted to the Congress by the date that the draft implementing bill is submitted to the Congress.

Requires the principal U.S. negotiating objectives regarding high technology access to be to eliminate or reduce foreign barriers to, and foreign government practices which limit, equitable access by U.S. persons to foreign-developed technology. Requires the United States, in pursuing such objectives, to take into account U.S. policies in licensing or making available to foreign persons U.S. developed technology.

Subtitle D: Functions of the United States Trade Representative - Requires the USTR to: (1) have primary responsibility for U.S. international trade policy; (2) serve as principal advisor to the President on such policy and advise the President on the impact of other policies on international trade; (3) have lead responsibility for the conduct of, and be chief U.S. representative for, international trade negotiations; (4) issue trade policy guidance to other agencies; (5) act as principal spokesman for the President on international trade; and (6) be chairman of a specified interagency trade organization and consult with such committee in the performance of USTR functions. Sets forth the membership and functions of the interagency trade organization.

Establishes in the Office of the USTR a Fair Trade Advocates Branch which shall assist qualifying industries in obtaining benefits under the trade laws: (1) by preparing and initiating cases for qualifying industries under the trade laws; (2) acting as an advocate in the proceedings of such cases; and (3) in pursuing administrative and judicial appeals of such cases.

Requires the USTR to submit an annual statement to specified congressional committees of: (1) U.S. trade policy objectives and priorities; (2) the actions proposed or anticipated to be undertaken during the year to achieve such objectives; and (3) any proposed legislation to achieve such objectives.

Requires the USTR to seek advice from certain advisory committees and congressional committees before submitting such statement. Requires the USTR and other Federal officials to consult with such congressional committees with respect to actions which may require or result in changes in trade objectives or priorities.

Subtitle E: Miscellaneous Trade Law Provisions - Amends the Trade Expansion Act of 1962 to require the Secretary of Commerce to report, within 90 days (180 days in extraordinarily complicated investigations), the Secretary's findings on the effects on national security of certain imports. Requires the President, within 30 days if the Secretary of Commerce finds that imports of an article are threatening national security, to: (1) determine whether the President concurs with the Secretary; (2) if the President concurs, determine what action to take; and (3) report to the Congress on such determination. Requires the President to take action within 15 days of determining to take action to adjust such imports.

Amends the Trade Act of 1974 to require the President, after January 4, 1987, to waive the competitive need limits with respect to a country eligible for preferences under the Generalized System of Preferences if that country: (1) qualifies for a waiver under specified criteria; (2) is a Latin American debtor country having difficulty servicing its debt; and (3) has not less than 20 percent of its debt held by any combination of U.S. banks, the International Monetary fund, and the World Bank. Sets forth a formula for allocating such benefits.

Transfers from the President to the USTR all functions, authorities, and determinations of the President under the Generalized System of Preferences.

Amends the Tariff Act of 1930 to require the President's appointment of the chairman and vice-chairman of the ITC to be made with the advice and consent of the Senate. Deletes the restriction on appointing as chairman or vice-chairman the two most recently appointed commissioners.

Directs the Secretary to prohibit for three years any multiple customs law offender from: (1) introducing or trying to introduce foreign goods or services into U.S. commerce; and (2) engaging or trying to engage any other person to introduce, on such offender's behalf, foreign goods into U.S. commerce. Provides for identifying such multiple offenders. Sets the penalty for violations of such prohibition.

Expresses the sense of the Congress that: (1) certain objectives relating to U.S. exports of metallurgical coal to Japan have not been achieved; (2) the President should seek to establish reciprocity with Japan with respect to such exports and steel product imports; (3) the President should direct the USTR to negotiate an agreement with Japan under which Japan will import U.S. metallurgical coal in quantities equivalent to that used in the production of Japanese steel products that are exported to the United States; and (4) the President should report to the Congress by November 1, 1987, on such negotiations.

Amends the Steel Import Stabilization Act to provide that any steel product that is manufactured in a country that is not party to a bilateral arrangement (a non-arrangement country) from steel which is melted and poured in a country that is an arrangement country will be treated for purposes of the quantitative restrictions under that arrangement as if it were a product of an arrangement country. Requires the Customs Service, if provided with documentation that a steel product was exported by an arrangement country to a non-arrangement country where the product was transformed for export to the United States, to treat such documented product as if it were a product of the arrangement country for purposes of quantitative restrictions.

Requires the ITC to monitor, and report to the Congress on, imports that may pose significant problems from import competition for U.S. industries.

Amends the Tariff Act of 1930 to prohibit the ITC from releasing certain confidential information unless the party who submitted such information consents to its release.

Designates the ITC an independent regulatory agency for purposes of the Paperwork Reduction Act of 1980 (allowing the ITC to override disapproval by the Office of Management and Budget of the issuance of a questionnaire to members of the public).

Title II: Miscellaneous Tariff and Customs Provisions - Subtitle A: Reference to the Tariff Schedules - Provides that all amendments in this title are amendments to the Tariff Schedules of the United States.

Subtitle B: Permanent Changes in Tariff Treatment - Repeals the prohibitions against imports of furskins from the Soviet Union.

Reduces the duty on salted and dried plums.

Imposes a duty on natural unconcentrated, non-reconstituted grapefruit juice.

Grants duty-free treatment to hatters' fur.

Treats plywood with tongued, grooved, lapped, or otherwise worked edges as plywood for tariff purposes.

Creates a new tariff classification to cover imports of certain woven fabrics of man-made fibers.

Imposes a duty on uranium hexafluoride that is imported for use in U.S. reactors and is a product of a country that requires that uranium mined in that country be converted or upgraded into uranium hexafluoride before its export. Provides for termination of such duty by the President.

Includes all forms of silicone in the term "synthetic plastics materials." Imposes a duty on silicone resins and materials.

Creates a new tariff classification to cover imports of motor fuel blending stocks. Imposes a duty on motor fuel blending stocks.

Provides that television picture tubes imported in combination with, or incorporated into, other articles are to be classified as television picture tubes (subject to an increased duty) unless they are incorporated or put into kits for incorporation into complete television receivers or into certain other fully assembled units.

Imposes an 11 percent duty on all imports on or before October 21, 1987, of television picture tubes which would be included in such assembled units but for this Act. Grants duty-free treatment to all imports on or before December 31, 1990, of certain small color television picture tubes.

Provides a duty on bicycle-type speedometers and parts.

Excludes the dials of watches and clocks from the special marking requirements. Provides that certain information shall be legibly (currently "conspicuously") marked with specified information. Permits such marking to be done by mold-marking. Permits manufacturers to put certain information on watch bezels. Deletes the requirement of including information on watch adjustments.

Reclassifies and imposes a duty on casein, caseinates, and milk protein concentrate for human food and animal feed use.

Subtitle C: Temporary Changes in Tariff Treatment - Suspends through December 31, 1990, the tariff on: (1) color couplers and coupler intermediates; (2) p-sulfobenzoic acid, potassium salt; (3) 2,2-'-oxamido (3) 2,2-'-oxamidobis-(ethyl 3-(3,5-di-tertbutyl-4-hydroxy-phenyl); (4) dicyclohexylbenzothiazylsulfenamide; (5) 2,4 dichloro-5-sulfamoyl benzoic acid; (6) derivatives of N-(4-(2-hydroxy-3-phenoxypropoxy)phenyl)acetamide; (7) 1,2-dimethyl 1-3, 5 diphenyl-pyrazolium methyl sulfate; (8) dicofol; (9) methylene blue; (10) 3,5-dinitro-o-toluamide; (11) butyl chloride; (12) nonbenzenoid vinyl acetate-vinyl chloride-ethylene terpolymer; (13) tungsten ore; (14) certain stuffed toy figures; (15) certain plastic sheeting used as radiation shielding material; (16) certain doll wig yarns; (17) wool carding and spinning machines; (18) generator lighting sets for bicycles, bicycle chains, and certain other bicycle parts; (19) 1-(3-sulfopropyl)pyridinium hydroxide; (20) d-6-Methoxy-a-methyl-2-naphthaleneatic acid and its sodium salt; (21) certain pesticides (dinocap, mixtures of dicofol and application adjuvants, and mixtures of mancozeb and dinocap); (22) cholestyramine resin USP; (23) 3-amino-3-methyl-1-butyne; (24) maneb, zineb, mancozeb, and metiram; (25) nicotine resins; and (26) hosiery knitting needles.

Extends the current suspension of duty until December 31, 1990, on: (1) mixtures of mashed or macerated hot red peppers and salt; (2) cantaloupes; (3) certain wools; (4) needlecraft display models; (5) triphenyl phosphate; (6) sulfapyridine; (7) synthetic rutile; (8) certain clock radios; (9) certain machines designed for heat-set, stretch texturing of continuous man-made fibers; (10) hosiery knitting machines; (11) double-headed latch needles; (12) certain stuffed dolls and toy figures; (13) umbrella frames; and (14) crude feathers and down.

Suspends the tariff on certain knitwear made in Guam until November 1, 1992.

Suspends the tariff on the personal effects and equipment of participants and officials involved in the Pan American Games until September 30, 1987.

Amends the Foreign Trade Zones Act to extend, through December 31, 1990, the exclusion of imported bicycle parts that are not subsequently re-exported from the exemption of the customs laws that is applicable to a foreign trade zone.

Subtitle D: Other Customs and Effective Date Provisions - Allows watches to be designated as eligible articles for purposes of the Generalized System of Preferences.

Requires the containers of imported preserved mushrooms to indicate in English the country in which the mushrooms were grown in order to comply with labeling laws relating to imports.

Amends the Trade and Tariff Act of 1984 to require the Secretary of the Treasury to charge a user fee to individuals for the use of customs services at the Pontiac/Oakland, Michigan, airport.

Prohibits any ethyl alcohol or mixture of ethyl alcohol from being considered eligible for exemption from duty as the growth or product of an insular possession or of a beneficiary country under the Caribbean Basin Economic Recovery Act unless the ethyl alcohol or mixture is an indigenous product of that insular possession or beneficiary country. Extends such prohibition through December 31, 1992. Exempts certain imports of ethyl alcohol from such prohibition if it is imported during 1987 and 1988 and if it was produced in a certain type of facility that was in operation on January 1, 1986. Sets forth the criteria for establishing that ethyl alcohol or an ethyl alcohol mixture is an indigenous product of an insular possession or beneficiary country.

Amends the Tariff Act of 1930 to require the Secretary of the Treasury to establish standards for setting the terms and conditions for cancellation of bonds or charges.

Provides for the duty-free entry of certain articles for use by a named organization in the construction of an optical telescope in Hawaii.

Provides for the reliquidation, without liability of the importer of record antidumping duties, of specified entries.

Directs the Secretary of the Treasury to reliquidate, as duty-free, four specified entries covering tubular tin products, if a certificate of actual use for the products is submitted to the U.S. Customs Service at the port of entry within 120 days of enactment of this Act.

Title III: Implementation of Nairobi Protocol - Subtitle A: Short Title, Purpose, and Reference - Education, Scientific, and Cultural Materials Importation Act of 1986 - Declares that it is the purpose of this title to: (1) provide for the implementation of the Nairobi Protocol to the Agreement on the Importation of Educational, Scientific, and Cultural Materials (the Florence Agreement); (2) modify the duty-free treatment accorded under the Educational, Scientific, and Cultural Materials Importation Act of 1982 (the 1982 Act), under the Educational, Scientific, and Cultural Materials Importation Act of 1966 and under another Act; and (3) continue the safeguard provisions concerning certain imported articles provided for in the 1982 Act.

Subtitle B: Amendments to Implement the Nairobi Protocol - Repeals the 1982 Act.

Amends the Tariff Schedules of the United States (TSUS) to provide duty-free treatment for: (1) catalogs of visual and auditory material of an educational, scientific, or cultural character; (2) architectural, engineering, industrial, or commercial drawings and plans; (3) loose illustrations, reproduction proofs, or reproduction films used for the production of books; (4) certain other articles in microfilm, microfiche, and similar film media; and (5) crossword puzzle books. Provides for duty-free treatment of certain other articles whether or not in the form of microfilm, microfiches, or similar film media.

Prohibits granting duty-free treatment to developed photographic film unless either: (1) a Federal agency determines that such article is visual or auditory material of an educational, scientific, or cultural character within the meaning of the Agreement for Facilitating the International Circulation of Visual and Auditory Materials of an Educational, Scientific, or Cultural Character; or (2) such article is imported by, or for the use of, an educational, scientific or cultural institution and is certified to be visual or auditory material of an educational, scientific, or cultural character or to have been produced by the United Nations or any of its specialized agencies. Provides duty-free treatment for articles determined to be visual or auditory materials in accordance with specified provisions.

Provides duty-free treatment for: (1) tools specially designed to maintain or repair certain scientific instruments or apparatus; and (2) articles specially designed or adapted for the use or benefit of the blind or other physically or mentally handicapped persons.

Subtitle C: Authority to Modify Certain Duty-Free Treatment Accorded Under This Act - Authorizes the President to proclaim changes in the TSUS to narrow the scope of, place conditions on, or otherwise eliminate the duty-free treatment accorded the tools for scientific instruments and the articles for the blind or other handicapped persons under this Act if such duty-free treatment has significant adverse impact on a domestic industry. Authorizes the President to resume duty-free treatment of such articles under certain circumstances.

Authorizes the President to proclaim changes to the TSUS to remove or modify any conditions and restrictions imposed by this Act on the importation of certain visual and auditory material in order to implement certain provisions of the Nairobi Protocol.

Amends the TSUS to change the headnote relating to the method of applying for permission to import certain scientific instruments and apparatus.

Directs the Secretary of the Treasury, in conjunction with the Secretary of Commerce, to obtain adequate statistical information on duty-free imports of articles for the blind and for other handicapped persons.

Subtitle D: Effective Date - Sets forth effective dates of the provisions of this Act.