Fair Foreign Competition Act of 1986

Fair Foreign Competition Act of 1986 - Requires the Secretary of Commerce, for each fiscal year after 1985, to determine which foreign countries during such year: (1) were excessive trade surplus countries; and (2) engaged in discrimination against U.S. goods and services. Designates foreign countries which meet both of the criteria contained in the preceding sentence as targeted countries for the following year. Requires the Secretary to submit an annual report to the Congress containing the reasons for such determinations and the list of targeted countries. Declares that no such determinations need be made for any year in which the percentage of the U.S. trade deficit divided by the gross national product is one and one-half percent or less. Sets forth actions that shall be taken against targeted countries within 30 days of submission of the list of targeted countries to the Congress. Reduces U.S. contributions to international lending agencies that provide aid to such countries. Prohibits providing U.S. economic aid to such countries. Prohibits providing preferential tariff treatment for imports from such countries if specified conditions are met. Authorizes the President to waive such actions against such countries in the interest of national security.