Fairness in Competition Act of 1986

Fairness in Competition Act of 1986 - Amends the Clayton Act to prohibit the importation or sale in the United States of any article produced in a foreign country if: (1) the production, exportation, or sale of such article is subsidized by a foreign country, citizen, or organization; and (2) the importation or sale of that article causes or threatens material injury to U.S. industry or labor, prevents the establishment or modernization of any U.S. industry, or would result in a monopoly or restraint of trade.

Permits an antitrust action for injunctive relief and treble damages to be brought against any foreign state or other relevant defendant that subsidizes such an article. Declares that: (1) providing a subsidy shall be a "commercial activity" for purposes of the Foreign Sovereign Immunities Act of 1976; and (2) "subsidy" shall include any rebate, repayment, offset of, or credit against any tax or tax liability levied or assessed on the value of articles if it is made by reason of the exportation of such articles. Subjects any court order in such an action to nullification by the President under the International Emergency Economic Powers Act.