Comprehensive Trade Law Reform Act of 1985

Comprehensive Trade Law Reform Act of 1985 - Title I: Countervailing and Antidumping Duties - Amends the Tariff Act of 1930 to add requirements for a country to be considered a "country under the Agreement" (the Agreement on Subsidies and Countervailing Measures) for purposes of the countervailing duty provisions of such Act. Requires such a country to have made a commitment under the General Agreement on Tariffs and Trade (GATT) to: (1) eliminate its export subsidies within one year (five for least developed countries); (2) not increase, extend, or add export subsidies; and (3) eliminate immediately export subsidies on those products in which such country is competitive.

Requires the International Trade Commission (ITC), upon request, to investigate whether the merchandise is already competitive in the U.S. market and whether the merchandise would be competitive in the absence of export subsidies.

Directs the Administering Authority to review the status of, and compliance with, specified trade agreements at least once during each 12 month period. Directs the Administering Authority to publish such determinations. Imposes penalties for failure of a foreign country to honor any term of such agreements, including withdrawing designation of a country as a "country under the Agreement," suspension of liquidation of imports and initiation of a countervailing duty investigation.

Directs the Administering Authority, if there is an affirmative determination, based upon allegations in a petition for relief, of the existence of a subsidy which requires the imposition of a countervailing duty and the petition alleges that the subsidy is inconsistent with the Agreement or if the Administering Authority initiates a countervailing duty investigation and the Administering Authority has reason to believe that a subsidy is inconsistent with the Agreement, to: (1) notify the U.S. Customs Service and direct customs officials to collect and forward to the Administering Authority information on the imports of the merchandise which is subject of the investigation; (2) order the suspension of liquidation of all entries of such merchandise; and (3) begin monitoring the volume of imports of such merchandise to determine whether the volume of such imports has significantly increased. Prohibits making any determination on whether the volume of such imports has significantly increased until 60 days after the date the investigation began. Terminates any suspension of liquidation of such imports if the Administering Authority makes a preliminary determination that a subsidy does not exist.

Directs the Administering Authority to order the posting of security for, and the application of a suspension of liquidation to, unliquidated imports which were imported 90 days before the date on which the preliminary determination is published if there is a determination that the volume of imports has surged, the alleged subsidy is inconsistent with the Agreement, and there have been massive imports of the merchandise subject to the countervailing duty investigation in a relatively short period.

Directs the Administering Authority to terminate any suspension of liquidation of imports and to release any posted security requirement if a countervailing duty investigation is terminated.

Requires the final determination of the Administering Authority in a countervailing duty investigation, if there is a final determination that a subsidy exists and if there is a finding that the volume of the investigated imports has increased significantly, to contain a finding on whether the alleged subsidy is inconsistent with the Agreement and whether there have been massive imports of the merchandise being investigated over a relatively short period of time. (Such finding is a finding of critical circumstances.)

Requires the final determination of the ITC, if such determination is that there is no material injury but that there is a threat of material injury, to include a finding as to whether material injury by reason of subsidized imports would have been found but for any suspension of liquidation of such imports. (Deletes the provision requiring the ITC to include in its final determination findings as to whether there is material injury which will be difficult to repair and whether the material injury was caused by massive imports of subsidized merchandise over a relatively short period of time.)

Requires the Administering Authority, if the Administering Authority makes a final determination that critical circumstances do not exist or if the ITC determines that there is no material injury but that there is a threat of material injury or that the establishment of a U.S. industry is materially retarded, to: (1) terminate any suspension of liquidation of imports ordered under a countervailing duty investigation; and (2) release any security and refund any cash deposit required with respect to such imports.

Permits determinations of whether critical circumstances exist with respect to imports of articles that are not duty-free.

Directs the Administering Authority, if the preliminary determination in an antidumping investigation is affirmative or if the investigation is initiated by the Administering Authority, to: (1) notify the U.S. Customs Service of such determination and direct customs officers to collect and forward information on the volume and value of imports of the merchandise subject to such investigation; and (2) begin monitoring the volume of such imports to determine whether the volume of such imports has significantly increased. Requires the Administering Authority to publish notice of a determination that the volume of such imports has significantly increased. Prohibits making such a determination until 60 days after the antidumping investigation has begun. Directs the Administering Authority to order the suspension of liquidation of all imports of the articles subject to the antidumping investigation 70 days after the date the investigation has begun. Terminates such suspension of liquidation if the preliminary determination under waiver of verification is negative.

Directs the Administering Authority to determine whether critical circumstances exist if the Administering Authority determines that the volume of imports of the articles under investigation for dumping has significantly increased. (Current law requires the Administering Authority to determine whether critical circumstances exist if the petitioner alleges critical circumstances.) Requires the Administering Authority, if it determines that critical circumstances exist, to order the posting of security for, and require any suspension of liquidation to apply to, unliquidated entries of merchandise imported on or after the date that is 90 days before the date on which the affirmative preliminary determination is published.

Terminates any suspension of liquidation of imports and releases any posted security if an antidumping investigation is terminated.

Requires the final determination of the Administering Authority in an antidumping investigation, if it finds that the merchandise subject to the investigation is being, or is likely to be, sold in the United States at less than fair value and the Administering Authority has found that the volume of imports of such merchandise has increased significantly, to contain a finding as to whether: (1) either there is a history of dumping in the United States or elsewhere of such merchandise or the importer knew or should have known that the exporter was selling such merchandise at less than its fair value; and (2) there have been massive imports of such merchandise over a relatively short period. (Current law requires such a finding to be included in the final determination if such critical circumstances have been alleged in the petition for relief.)

Requires the final determination of the ITC, if such determination is that there is no material injury but that there is a threat of material injury, to include a finding as to whether material injury by reason of dumped imports would have been found but for any suspension of liquidation of such imports.

Requires the Administering Authority, if the Administering Authority makes a specified final determination or the ITC determines that there is no material injury but that there is a threat of material injury or that the establishment of a U.S. industry is materially retarded, to: (1) terminate any suspension of liquidation of imports of such merchandise; and (2) release any security and refund any cash deposit required with respect to such imports.

Declares that if the ITC has made an affirmative preliminary or final determination that countervailing or antidumping duties should be imposed with respect to merchandise that is the subject of a countervailing or antidumping duty investigation during the one-year period ending on the date on which such investigation is begun: (1) the ITC shall not be required to make another preliminary determination of injury; and (2) the preliminary determination of relief shall be applied without regard for the requirement that an affirmative injury determination be obtained.

Authorizes the Administering Authority to suspend a countervailing duty investigation if the government of the country in which the subsidy practice is alleged to occur agrees, or exporters who account for substantially all of the imports of the merchandise agree, to: (1) eliminate the subsidy completely within six months; or (2) cease exports of such merchandise to the United States within six months. Deletes the provision authorizing suspension of such investigation if the subsidizing country agrees to offset the amount of the subsidy.

Adds new conditions for the waiver of deposit of estimated antidumping duties. Authorizes such waiver if in addition to the current requirements: (1) the investigation has not been designated as extraordinarily complicated; (2) the final determination has not been postponed; (3) credible evidence is presented that the amount by which the foreign market value of the merchandise exceeds the U.S. price is significantly less than the amount of such excess specified in the antidumping duty order; and (4) the data concerning the foreign market value and the U.S. price apply to sales in the usual commercial quantities and in the ordinary course of trade and the number of such sales are sufficient to form an adequate basis for comparison. Requires the Administering Authority, before determining to allow such waiver, to: (1) make all confidential information supplied to the Administering Authority available under a protective order to all interested parties; and (2) afford all interested parties an opportunity to comment on whether the waiver should be permitted.

Amends the definition of "subsidy" for purposes of the countervailing duty provisions to include the provision of capital, loans, loan guarantees, goods, or services at preferential rates or on terms inconsistent with commercial consideration. Amends the definition of "interested party" to include a U.S. manufacturer, producer, or wholesaler, or a union, trade or business association, or another association which represents manufacturers, producers or wholesalers of a like product of major parts, materials, components, or assemblies or subassemblies which are irrevocable destined for incorporation into a like product.

Defines "diversionary dumping" as the purchase by a manufacturer or producer of any material or component at less than the foreign market value of such material or component which is incorporated into the merchandise under investigation and which has been the subject of a previous antidumping investigation. Sets forth the method of determining the adjustment amounts for determining foreign market value, sales at less than the cost of production, and the constructed value of components and materials.

Includes subsidies provided under the authority of a statute, regulation, policy, or practice of a customs union within the definiton of upstream subsidies. Creates a presumption of competitive benefit if: (1) a countervailing duty order is in effect with respect to an input product or an input product is subject to an import restriction agreement; (2) a subsidy continues to be paid on such input product after the countervailing duty order was issued or after the agreement took effect; and (3) the Administering Authority determines that an increase in imports of merchandise under a countervailing duty investigation has occurred.

Requires (currently authorizes) the Administering Authority and the ITC to make confidential information submitted to an antidumping or countervailing duty investigation available upon receipt of a request which describes in general terms (currently with particularity) the type of information sought and the reasons for the request, unless the person who submitted such information establishes that substantial harm to the business operations of such person would result from such disclosure. Sets forth additional limits on disclosure of such information, including a time limit on making the determination of whether to disclose information.

Title II: Relief from Injury Caused by Import Competition - Transfers from the President to the Administering Authority the authority to take certain actions following import relief investigations by the ITC.

Authorizes a petition for import relief to include within its statement of reasons for requesting import relief the desire to facilitate the orderly transfer of resources to enhance competitiveness.

Changes the scope of the ITC's import relief investigation to include determining whether an article is being imported into the United States in such increased quatities as to be a cause (currently substantial cause) of serious injury or threat of serious injury to any domestic industry that produces an article like or directly competitive with the imported article or that produces materials, parts, components, or subassemblies irrevocably destined for incorporation in an article like or directly competitive with the imported article.

Changes one of the factors that must be considered in making such determination with respect to serious injury in order to cover the inability of a significant number of firms to operate domestic production facilities at a reasonable profit. (Current law refers to the inability of firms to operate at a reasonable profit.)

Changes the factors that must be considered in making such determination with respect to the threat of serious injury in order to cover: (1) a decline in sales or market share in the domestic industry; (2) a higher and growing inventory in the domestic industry; (3) a downward trend in production, profits, wages, or employment (or increasing underemployment) in the domestic industry; (4) any combination of coordinated government actions that are bestowed on a specific enterprise, industry, or group thereof the effect of which is to assist the beneficiary to become more competitive in the export of any class or kind of merchandise and that causes or threatens to cause serious injury to the domestic industry; (5) the extent to which the U.S. market is the focal point for diversion of exports of the article concerned because of restraints on exports of the article concerned because of restraints on exports of such article to, or imports of such articles into, third country markets; and (6) in the case of an industry that has developed an industry assessment and competitiveness strategy, the inability of producers in the domestic industry to generate adequate capital to finance the modernization of plant and equipment or to otherwise enhance competitiveness.

Requires (currently authorizes) the ITC to make certain determinations with respect to determining the domestic industry producing an article a like or directly competitive with an imported article.

Defines "cause" for purposes of determining whether imports are a cause of injury to mean a cause which is important. Declares that a cause may be important even though other causes are of equal or greater importance.

Requires the ITC, if it finds that serious injury or the threat of serious injury exists for a domestic industry, to: (1) find the amount of the increase in, or imposition of, any duty or import restriction necessary to prevent or remedy such injury; and (currently or) (2) if it determines that adjustment assistance can assist in remedying such injury, recommend the provision of such assistance.

Directs the Administering Authority, if during an import relief investigation it finds that critical circumstances exist, to impose provisional measures (increase in tariff, tariff-rate quotas, quantitative restrictions, orderly marketing agreements or a combination of such actions). Requires such measures to remain in effect until the later of the date: (1) on which the President revokes such measures; (2) on which the ITC makes a negative determination of injury; or (3) which is 60 days after the date on which the ITC makes an affirmative determination of injury. Declares that critical circumstances exist if a significant increase in imports over a short time has led to circumstances in which delay in relief would cause damage that would be difficult to repair.

Requires the ITC, if it finds that serious injury has resulted from imports, to determine: (1) whether trade in the article concerned has been affected by coordinated government actions that are bestowed on a specific enterprise, industry or group and that assist the beneficiary in becoming more competitive in exporting a class or kind of merchandise; and (2) the extent to which the U.S. market is the focal point for diversion of exports of such article because of restraints an exports of such article to, or on imports of such article into, third country markets.

Directs the Administering Authority, if it determines to provide import relief and the ITC has found that trade in the article has been affected by such coordinated government actions, to consult and negotiate with other countries that produce or consume such article to seek the establishment of a multilateral framework to maintain and develop fair, equitable, and nondisruptive patterns of trade in such article.

Directs the Administering Authority, after the ITC begins an import relief investigation based on a petition, to establish, upon request, an industry advisory group. Requires such an advisory group to prepare for the industry concerned an assessment of current problems and a strategy to enhance competitiveness. Directs the Administering Authority to try to obtain, on a confidential basis, information from the individual members of such advisory group on: (1) how such members intend to act upon the recommendations in such assessment and strategy; and (2) any other actions such members intend to take which will foster the objectives of the strategy.

Requires the Administering Authority, the ITC, the Secretary of Labor, and the Secretary of Commerce to consider such assessment and strategy in making any import relief determination or taking any import relief action.

Requires the Administering Authority, if it determines to provide import relief and if an industry assessment and competitiveness strategy was submitted to the Administering Authority, to publish notice of the availability of, and a summary of, such assessment and strategy. Requires a review committee, if such summary is published, to: (1) monitor actions taken by the petitioners to improve the competitive position of the industry; (2) make recommendations for administrative action; and (3) submit recommended legislation to the Congress. Requires the review committee to consult with the advisory group members if the review committee determines that the firms or workers are not implementing or are implementing unsatisfactorily: (1) the recommended objectives and actions in the industry assessment and competitiveness strategy; or (2) the actions declared in the confidential information obtained by the advisory group.

Requires the Administering Authority to request the ITC to issue a report on the probable economic effect on the industry of import relief if, after consultations with the advisory group members, the review committee determines that the failure to implement or failure to implement satisfactorily such actions is not justified by changed circumstances and has adversely affected overall implementation of the objectives of the industry assessment and competitiveness strategy.

Requires the Administering Authority, if it decides to provide import relief, to consult with petitioners and representatives of workers and firms in the affected industry on the advisability and desirability of taking appropriate action under countervailing or antidumping duty provisions of the Tariff Act of 1930 or under title III of the Trade Act of 1974 if the Administering Authority has reason to believe that a foreign government or firm is engaged in any action or practice for which such relief is available.

Title III: Relief from Injurious Industrial Targeting and Unfair Trade Practices - Provides 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 thereof; (2) which assist such 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. Transfers from the President to the Administering Authority the authority to take certain actions to enforce U.S. rights under trade agreements and to respond to certain foreign trade practices.

Authorizes the Administering Authority 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 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 Administering Authority deems appropriate; (3) negotiate agreements to offset the burden or restrictions on U.S. commerce; (4) submit proposed administrative actions and legislation to implement any other government action which would restore or improve the international competitive position of the injured or threatened industry; (5) recommend to the President action respecting service sector authorization; or (6) recommend any combination of such actions.

Transfers to the Administering Authority from the President the authority to impose certain limits on service sector access authorizations (authorizations that permit a foreign supplier of services access to the U.S. market).

Deletes the provision authorizing the President to take action to enforce U.S. trade rights even through no petition for relief has been filed.

Directs the Administering Authority to consult with representatives of domestic firms and workers that may be affected by any import relief investigation which is initiated by petition filed with the the Administering Authority regarding any determination which is required to be made by the Administering Authority.

Directs the Administering Authority, upon written request, to make confidential business information obtained by it in connection with an import relief investigation available under a protective order. Prohibits release of information classified for national security reasons. Requires the Administering Authority to act upon requests for such information within ten days of the request.

Requires the Administering Authority, in conducting an import relief investigation initiated by petition to the Administering Authority, to present detailed questionnaires to the foreign government or enterprise involved in order to obtain information concerning the allegations in the petition. Directs the Administering Authority to verify any such information which the Administering Authority 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 Administering Authority 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 Administering Authority 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 Administering Authority 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 Administering Authority to consult with the petitioner and representative of the affected domestic firms and workers if the final determination is affirmative. Requires the Administering Authority to report to the Congress if the final determination is affirmative and the Administering Authority 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 Administering Authority, 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 Administering Authority 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 Administering Authority if the Administering Authority's preliminary determination is affirmative; or (2) 75 days after an affirmative final determination of the Administering Authority if the Administering Authority'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 Administering Authority pending conclusion of the investigation, to take at least one of several provisional actions in order to prevent further injury or threat of injury from injurious industrial targeting.

Requires the Administering Authority, after a final determination of injury has been made, to take at least one of several actions to fully offset the material injury or threat of material injury from injurious industrial targeting.

Directs the Administering Authority 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 expedited consideration of such legislation. Requires the Administering Authority to report to the Congress on the actions the Administrative Authority will take to offset the material injury or threat of material injury from the injurious industrial targeting.

Authorizes the Administering Authority 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.

Authorizes the Administering Authority to take actions to compensate a foreign country or entity if the contracting parties to the General Agreement on Tariffs and Trade (GATT) disapprove of actions taken in response to injurious industrial targeting.

Directs the Administering Authority to consult with the petitioner and the representatives of affected domestic firms and workers if, in the course of an investigation, the Administering Authority has reason to believe that a foreign government engaged in dumping or other actions for which relief is available under specified provisions of the Tariff Act of 1930.

Title IV: Negotiating Objectives - Declares that the principal U.S. negotiating objectives shall be to: (1) obtain and preserve maximum access to international markets for U.S. manufactured products; (2) obtain the elimination of foreign barriers to market access; (3) obtain internationally accepted rules to evaluate and respond to the maintenance and operation of government-controlled enterprises that engage in international trade; and (4) establish procedures governing such enterprises.