Competitive America Trade Reform Act of 1986

Competitive America Trade Reform Act of 1986 - Declares that it is U.S. policy that: (1) the United States shall call for a multilateral conference to seek a new international monetary regime; (2) the United States shall try to use its foreign aid programs to aid the development of the private sectors in less developed countries; (3) rules of trade, dispute settlement procedures, and penalties for trade violations should be strengthened; (4) new policies are required to aid U.S. industries to improve their international competitiveness; and (5) a new program of transition aid for workers and firms is needed.

Title I: International Monetary Reform - Establishes a temporary National Commission on International Monetary Reform which shall prepare a report for the President and the Congress analyzing and evaluating: (1) proposed reforms of the international monetary system; (2) the effects of international capital flows on exchange rate volatility and proposals for restricting capital transactions; (3) proposed methods for coordinating monetary policies of major industrialized nations; (4) objectives for joint intervention in foreign exchange markets; (5) a detailed working agenda to be presented to the International Monetary Fund (IMF) for a new "Bretton Woods" conference; and (6) other matters, including legislative recommendations. Authorizes appropriations.

Directs the Secretary of the Treasury, within 45 days of the submission of the Commission's report, to submit legislation to the Congress implementing policy changes recommended by the Commission and authorizing submission of the agenda to the IMF. Provides for expedited consideration of such legislation. Directs the Secretary of the Treasury, within 15 days of enactment of such legislation, to request the IMF to convene a working group to consider the agenda for a conference on monetary reform.

Amends the Internal Revenue Code to reinstate the 30 percent withholding tax on portfolio interest paid to foreign persons.

Title II: Foreign Assistance and Investment - Declares that it is U.S. policy to: (1) administer the aid programs referred to in this title in a manner that promotes the development of as diverse a range of economic sectors within developing countries as is practicable; and (2) prevent any domestic industry or economic sector from bearing a disproportionate economic burden as a result of a bilateral trade or investment agreement or of the operation of a U.S. development program in foreign countries.

Authorizes the Secretary of State to: (1) develop a list of those less developed countries in which Cooley Loan Program activities may be conducted; and (2) negotiate and conclude agreements for the implementation of a Cooley Loan Program. Requires such agreements to provide for: (1) the sale of surplus U.S. commodities to be paid for by local currencies; (2) such currencies to be made available to designated accounts under the control of the Secretary of State; (3) spending no less than 50 percent of certain development funds for private sector development; and (4) specifying maximum local currency reserve levels in designated accounts, monetary growth targets in the host country, and termination conditions.

Establishes an Economic Security Council. Requires the Council to: (1) advise the President on domestic and international economic matters; (2) develop and oversee U.S. economic policy; and (3) develop an international bankruptcy procedure to guide U.S. banks and agencies in responding to impending defaults by debtor nations. Abolishes the Cabinet Council on Economic Affairs.

Authorizes the President to enter into trade agreements with least developed developing countries which provide for liberalization of trade between the United States and such countries.

Establishes within the International Development Cooperation Agency the International Private Enterprise Institute which shall: (1) provide expertise and technical aid to less developed countries in attracting financial investment, developing indigenous industries, and promoting exports; and (2) serve as U.S. liaison for the Multilateral Investment Guarantee Agency of the International Bank for Reconstruction and Development.

Requires that funds authorized: (1) for programs conducted by the Agency for International Development shall be used for government-to-government and official activities which foster economic growth and promote a favorable climate for development of the private sector in developing countries; and (2) for programs conducted by the Overseas Private Investment Corporation (OPIC) shall be used to promote economic growth and stability through the direct involvement of the private sector. Creates four special offices within OPIC for program development. Authorizes OPIC to take partial equity interest in qualified development projects.

Expresses the sense of the Congress that the United States should call upon the IMF and the International Bank for Reconstruction and Development to convene a special meeting of the Group of Ten industrial nations and debtor nations for the purposes of formalizing growth-oriented conditionality guidelines to promote the creditworthiness of less developed countries, debt repayment flexibility, and trade liberalization. Directs the Secretary of the Treasury to prepare a report in preparation for such conference and submit such report to the Congress.

Title III: Trade Laws and Agreements - Subtitle A: General Agreement on Tariffs and Trade - Directs the U.S. Trade Representative (USTR) to request the contracting parties to the General Agreement on Tariffs and Trade (GATT) to join the United States in ministerial sessions preparatory to a new round of negotiations which would seek to: (1) create or strengthen GATT articles on certain trade issues; (2) strengthen the GATT as an institution by means of certain administrative and rules changes; and (3) tighten GATT enforcement mechanisms through reforms of the panel system.

Subtitle B: Reform of Certain States Trade Laws - Declares that it is U.S. policy to regard a country as not subscribing to the open trade principles of the GATT and to impose trade sanctions on such country if such country fails to: (1) demonstrate good faith in adhering to GATT principles; (2) cooperate in extending GATT coverage to the areas listed in Subtitle A; (3) seek to eliminate counterfeiting, piracy of intellectual property, or violations of export licensing regulations; or (4) assist in international efforts to curb illicit drug traffic.

Requires petitions for import relief that are filed with the International Trade Commission (ITC) to: (1) allege that an article is being imported in such increased quantities as to be a substantial cause of serious injury to the competing domestic industry or a substantial threat of serious injury to a nascent competing domestic industry; and (2) include a statement describing the purposes for which import relief is sought, including the objective of facilitating methods of adjusting to the competition. Requires the ITC to decide within 25 days whether the petition alleges all the elements necessary for import relief.

Requires the Secretary of Commerce (the Secretary) to initiate an import relief investigation if the ITC determines that the petition contains all the necessary elements.

Declares that the Secretary shall initiate such an investigation upon request of the President, the USTR, the ITC, or upon the Secretary's own motion.

Requires the Secretary, within 90 days of the start of such investigation, to determine whether: (1) any domestic industry is being seriously injured; or (2) any nascent domestic industry is being threatened. Sets forth factors the Secretary shall consider in making such determination. Sets forth the method of determining whether the article that a domestic industry produces is like or competitive with an imported article. Requires the Secretary, if the Secretary determines that imports are injuring or threatening a domestic industry, to: (1) notify the ITC; and (2) make available to the ITC certain information relating to such determination.

Requires the ITC, within 30 days of the Secretary's determination, to determine whether imports are a substantial cause of the serious injury, or threat of injury, found by the Secretary. Sets forth factors the ITC shall consider and investigate. Requires the ITC to report to the USTR the ITC's determination and the basis for such determination. Requires the ITC to recommend to the USTR the duty, import restrictions, or adjustment assistance necessary to remedy or prevent the injury. Prohibits another import relief investigation of the same subject matter until one year after the ITC's report to the USTR, unless the ITC determines there is good cause for another investigation.

Requires the Secretary and the Secretary of Labor, upon the start of an import relief investigation, to begin negotiations with representatives of the affected domestic industry on an industry modernization agreement. Prohibits granting import relief unless an industry modernization agreement has been entered into and the National Commission on International Competitiveness has approved such agreement. Authorizes the USTR to waive the requirement of having such an agreement for six months if specified conditions are met.

Requires the USTR to request certain proceedings under the GATT, if appropriate.

Transfers from the President to the USTR certain duties relating to actions taken after import relief investigations. Reduces from 60 to 30 days the amount of time that may elapse between submission of a report recommending import relief and the determination of the method and amount of import relief to be granted.

Includes among the factors the USTR must consider in determining the amount and method of import relief: (1) domestic economic and political constraints affecting the domestic industry; and (2) the international market for articles under investigation and labor conditions in the production of such articles.

Transfers from the President to the USTR the duty to determine the method and amount of import relief to be granted (except that the President may, when it is necessary for national security, reduce or terminate such import relief).

Requires import relief ordered by the USTR to take effect within 15 days of such order. Requires the USTR to order the import relief within 15 days after the date on which the USTR determines to provide import relief. Prohibits such import relief from taking effect if the President: (1) determines that such import relief should not be taken for reasons of national security; or (2) certifies to the Congress that negotiations on orderly marketing agreements or voluntary restraint agreements have been entered into regarding imports of the affected article. Requires the USTR to submit semiannual reports on such negotiations if no import relief is granted because of such negotiations. Requires the USTR to order such import relief if, 18 months after the President makes such certification, a joint resolution is adopted ordering such relief. Provides for expedited consideration of such resolution.

Requires the Secretary, if the USTR grants import relief, as long as such relief remains in effect to: (1) monitor the domestic industry that was found to be injured or threatened by imports; and (2) notify the USTR of any change in circumstances that would alter the continued validity of such determination.

Requires the ITC, if the USTR grants import relief, as long as such relief remains in effect to: (1) monitor the domestic industry and any foreign country or trade agreement that were the subjects of a finding that imports injured or threatened a domestic industry; and (2) notify the USTR of any change in circumstances that would alter the continued validity of such determination.

Changes the method of petitioning for enforcement of U.S. rights under trade agreements and for a U.S. response to certain foreign trade practices. Authorizes any person which is representative of a domestic industry to file with the ITC a petition requesting the USTR to enforce U.S. rights under a trade agreement or respond to unfair foreign trade practices. Sets forth the allegations that shall be included in such petition, including the allegation that unenforcement of U.S. rights or use of the foreign trade practice is a cause of injury to a domestic industry or a threat of injury to a nascent domestic industry. Requires the ITC to determine within 25 days whether the petition alleges all the necessary elements for relief. Requires the Secretary to initiate an investigation if the ITC finds that the petition is sufficient. Declares that the Secretary shall initiate such investigation upon request of the President, the USTR, or the ITC, or upon the Secretary's own motion.

Requires the Secretary, within 90 days of the start of such investigation, to determine whether: (1) the domestic industry is being injured; or (2) any nascent domestic industry is being threatened with injury. Sets forth factors to be considered in making such determination. Requires the Secretary to notify the ITC if such determination is affirmative. Terminates the investigation if the determination is negative. Sets forth the definition of injury and threat of injury with respect to such investigation.

Requires the ITC, within 30 days of receipt of the Secretary's affirmative determination, to determine: (1) whether U.S. rights under a trade agreement are not being enforced or a foreign country's policy denies benefits to the United States under any trade agreement or is unjustifiable or restricts U.S. commerce; and (2) whether such unenforcement or policy is a cause of the injury or threat of injury found by the Secretary. Sets forth factors the ITC shall consider in making such determination. Requires the ITC to report its determinations to the USTR and to submit a recommendation of actions that the USTR should take if the conditions described in both (1) and (2) are found to exist. Sets forth definitions.

Requires the USTR to request certain proceedings under the GATT, if appropriate.

Requires the USTR, if both determinations of the ITC are affirmative, to determine what actions the USTR will take to: (1) enforce U.S. rights under such trade agreement; and (2) obtain the elimination of the unfair foreign policy. Sets forth actions the USTR may take, including: (1) withdrawal of trade agreement concessions; (2) increases in import restrictions on the goods or services of such country; (3) increases in restrictions on, or denial of issuance of, service sector access authorizations; and (4) denial of intellectual property protections to nationals of such country. Sets forth factors the USTR shall consider in determining what action to take. Requires the USTR to issue the order taking such action within 15 days of determining what such action should be. Prohibits such action from taking effect if the President: (1) determines that such action should not take effect for national security reasons; or (2) certifies to the Congress that such foreign country has entered into certain good faith negotiations. Provides for imposing such action if a joint resolution is enacted 18 months after the President makes such certification to the Congress. Provides for expedited consideration of such resolution.

Requires the Secretary to: (1) monitor the domestic industry or nascent industry that the Secretary found to be injured or threatened with injury; and (2) notify the USTR of any change in circumstances that would alter such determination.

Requires the ITC to: (1) monitor the domestic industry and any foreign country or trade agreement that the ITC found to be injured or unenforced; and (2) notify the USTR of any change in circumstances that would alter such determinations.

Amends the Tariff Act of 1930 to change the method of investigation and relief under section 337 of such Act (relating to unfair practices in import trade). Adds a new title to such Act covering such changes. Authorizes any person that is representative of a domestic industry to file a petition with the ITC requesting the USTR to investigate and provide relief from unfair practices in import trade.

Requires such petition to allege that: (1) the owner or consignee of an import is using an unfair method of competition or is committing an unfair act in the importation of any article or in the sale in the United States of any import; and (2) the effect or tendency of such unfair method or unfair act is to injure substantially an efficiently operating U.S. industry, to prevent the establishment in the United States of a competing industry, or to restrain or monopolize U.S. trade. Requires the ITC to determine within 25 days whether the petition alleges all the necessary elements for relief. Requires the Secretary to initiate an investigation if the ITC finds that the petition is sufficient. Declares that the Secretary shall initiate such investigation upon request of the President, the USTR, or the ITC, or upon the Secretary's own motion.

Requires the Secretary, within 90 days of the start of such investigation, to determine whether: (1) the domestic industry is being operated efficiently and is being substantially injured; (2) the establishment of a competing industry in the United States is being prevented; or (3) U.S. trade or commerce is being restrained or monopolized. Sets forth factors to be considered in making such determination. Requires the Secretary to notify the ITC if such determination is affirmative. Terminates the investigation if the determination is negative. Sets forth the definitions of "substantially injured" and "restrained or monopolized" with respect to such investigation.

Requires the ITC, within 30 days of the Secretary's affirmative determination, to determine: (1) whether the alleged method of competition or act exists and is an unfair method of competition or an unfair act; and (2) if such determination under (1) is affirmative whether such method or act effects or tends to effect the Secretary's finding of substantial injury to a domestic industry, prevention of establishment of a domestic industry, or restraint or monopolization of trade or commerce. Sets forth factors the ITC shall consider in making such determination. Requires the ITC to report its determinations to the USTR and to submit a recommendation of actions that the USTR should take if the conditions described in both (1) and (2) are found to exist.

Authorizes the ITC to order that certain articles may not be imported by any person reasonably suspected of violating section 337 if the ITC, during its investigation, determines that there is reason to believe that such violation may threaten the public health or safety or cause irreparable harm to a domestic industry. Authorizes the ITC to vacate such order at any time before its report to the USTR. Requires such order to expire 30 days after such report to the USTR.

Requires the ITC to request certain proceedings under the GATT, if appropriate.

Requires the USTR, if both determinations of the ITC are affirmative, to determine what actions the USTR will take to respond to such violations of section 337. Authorizes the USTR to take the following actions: (1) denial of entry into the United States of articles imported by persons who engaged in an unfair method of competition or unfair act; (2) issuance of a cease and desist order to persons engaging in such method of competition or such acts; and (3) (if a foreign country is engaged in such method of competition or committed such unfair act) withdrawal of trade agreement concessions, increases in import restrictions on such country's products, suspension of certain compensation under the Trade Act of 1974, and denial of intellectual property protection to nationals of such country. Authorizes the USTR to determine not to take any action to respond to a violation of section 337 if each of the above actions would have a substantial adverse effect in the United States on: (1) the public health and safety; (2) competitive conditions; (3) the production of like or directly competitive articles; or (4) consumers. Sets forth factors the USTR shall consider in determining what action to take. Requires the USTR to issue the order taking such action within 15 days of determining what such action should be. Prohibits such action from taking effect if the President: (1) determines that such action should not take effect for national security reasons; or (2) certifies to the Congress that in the case of an action against a foreign country such foreign country has entered into certain good faith negotiations. Provides for imposing such action if a joint resolution is enacted 18 months after the President makes such certification to the Congress. Provides for expedited consideration of such resolution. Requires the USTR to terminate any such action if the USTR determines that the relevant unfair method of competition or unfair act has terminated. Excludes certain imports needed by the Federal Government from the USTR's orders. Sets forth penalties for violations of such actions.

Requires the Secretary to: (1) monitor the domestic industry, trade, or market that the Secretary found to be injured, prevented, or restrained; and (2) notify the USTR of any change in circumstances that would alter such determination.

Requires the ITC to: (1) monitor the unfair method of competition or unfair act that the ITC found to exist; and (2) notify the USTR of any change in circumstances that would alter such determinations.

Reverses the roles of the ITC and the administering authority in antidumping and countervailing duty investigations. Changes the definition of the "administering authority" from the Secretary of the Treasury to the Secretary of Commerce.

Amends the Trade Act of 1974 to include in the annual report to the Congress on barriers to market access an identification and analysis of: (1) foreign industrial targeting; (2) protection of intellectual property rights by foreign countries; (3) procurement practices of foreign governments; (4) foreign protection of nascent industries; and (5) subsidies provided by foreign countries. Transfers the responsibility for generating such report from the USTR to the ITC.

Title IV: Enhancing International Competitiveness - Subtitle A: International Commerce - Establishes the National Commission on International Competitiveness (the Commission) which shall assist U.S. industries in competing in international markets. Sets forth the membership and functions of such Commission.

Amends the Sherman Act to require courts to consider global market and competitive conditions in any case in which it has been alleged that there has been a monopoly or attempt to monopolize.

Amends the Clayton Act to require courts to consider global market and competitive conditions before finding that such Act has been violated.

Directs the Attorney General and the Federal Trade Commission to develop regulations for expedited procedures to consider applications for antitrust waivers for joint ventures proposing to undertake research and development ventures. Requires such regulations to be developed under guidelines established by the Commission and the National Cooperative Research Act of 1984. Authorizes the Commission to modify such regulations.

Amends the Foreign Corrupt Practices Act of 1977 to authorize the Attorney General to waive the provisions of title I of such Act and a specified provision of the Securities Exchange Act of 1934 with respect to conduct involving a foreign country that the Attorney General certifies has: (1) effective bribery or corruption statutes; and (2) an established record of aggressive enforcement of such statutes. Authorizes the Attorney General to share certain information with such countries.

Requires the Secretary to: (1) develop a classification code for monitoring international trade in services; (2) monitor international trade in service; and (3) report annually to the Congress on such trade. Requires the President to pursue bilateral agreements on trade in services until such trade is brought within the scope of the GATT.

Requires the U.S. Foreign and Commercial Service to expand commercial attache programs to cover developing countries now served by State Department personnel.

Amends the Export-Import Bank Act of 1945 to require the Export-Import Bank to: (1) develop a program of coinsurance to expand small business exports; and (2) develop with the Agency for International Development a special fund to counter predatory, subsidized financing and mixed credit programs of other countries.

Subtitle B: Technology, Transfer, Research, and Development - Amends the Stevenson-Wydler Technology Innovation Act of 1980 to require the Secretary to increase the availability of foreign science and engineering literature to U.S. businesses, scientists, and engineers.

Establishes the Federal Laboratory Consortium for Technology Transfer in the National Science Foundation. Sets forth the duties of the Consortium. Requires the Director of the National Science Foundation to report biennially to the Congress and to the President on the Consortium's activities. Requires each Federal agency to transfer a specified percentage of funds to the National Science Foundation for the Consortium.

Reauthorizes the Stevenson-Wydler Technology Innovation Act of 1980 through FY 1990. Authorizes additional appropriations for such Act for FY 1986, 1987, and 1988 in order to increase the availability of foreign technical literature.

Requires the National Science Foundation, within 180 days of enactment of this Act, to report to the Congress on the relative merits and feasibility of establishing the National Corporation for Cooperative Laboratory Research (the Corporation). Sets forth factors to be included in such study. Declares that the Corporation would be an independent Federal entity with control over designated Federal laboratories. Sets forth the primary functions of the Corporation.

Requires the National Science Foundation, through the Consortium, to: (1) monitor technology transfer activities of Federal laboratories; (2) assess the resources and effectiveness of collaborative efforts among the laboratories, private industry, and academia; and (3) promote a national information network to foster private sector commercialization of Federal laboratory research and discoveries.

Title V: Education for American Competitiveness - Education for American Competitiveness Act - Subtitle A: High Technology Morrill Program - Establishes in the Treasury a Technology Education Trust Fund. Requires the Secretary of the Treasury to transfer to the Trust Fund for each of FY 1987 through 1991 a certain amount of the sums paid to the United States under: (1) the Outer Continental Shelf Lands Act; (2) the Mineral Leasing Act of 1920; and (3) other mineral resource development Acts.

Authorizes the Secretary of Energy to make grants for technology education programs. Sets forth the: (1) conditions of such grants; (2) method of applying for such grants; and (3) uses for such grants. Requires the Secretary of Energy to pay the Federal share of the costs of activities described in the application. Provides for equitable distribution of such grants. Authorizes the Secretary of Energy to withhold payments if the conditions of the application are not met. Sets forth provisions for the administration of this subtitle.

Subtitle B: Teacher Training and Postsecondary Programs - Authorizes the Secretary of Education to establish a program of grants to institutions of higher education in order to encourage coordination between such institutions and local educational agencies in the improvement of science, mathematics, and foreign language education. Requires the Secretary of Education to give priority to proposals which include certain activities for teachers. Authorizes appropriations for FY 1987 through 1989.

Subtitle C: Foreign Language Assistance - Directs the Secretary of Education to make grants to State educational agencies to fund model programs providing commencement or improvement and expansion of foreign language study for students residing within their school districts. Provides a formula for the amount of such grants. Sets forth the application requirements. Authorizes appropriations for FY 1987 through 1989.

Title VI: Trade Adjustment Assistance - Amends the Trade Act of 1974 to prohibit paying trade adjustment assistance benefits to a dislocated worker until the worker submits to the Secretary of Labor an agreement to make certain repayments to the Secretary which shall be deposited in the general fund of the Treasury. Sets forth the formula for determining what amount the worker must repay.

Provides that an adversely affected worker may receive trade adjustment assistance for the weeks of unemployment: (1) which occur after a certain date relating to certification of the worker's status; and (2) for which no unemployment insurance has been received by the worker. (Prohibits unemployment insurance payments to workers eligible for trade adjustment assistance.)

Authorizes the Secretary of Labor to require all trade dislocated workers, in areas where training is available to accept such training within 14 days of the date such workers apply for trade adjustment assistance except that no worker may be required to: (1) accept training or undertake a job search until eight weeks after the start of unemployment; or (2) accept or participate in such training for a period longer than the remaining period of eligibility for trade adjustment assistance.

Provides trade readjustment assistance for workers for 26 weeks.

Requires trade adjustment assistance agreements with States to prohibit payment of unemployment compensation if a worker eligible for such compensation is eligible for trade adjustment assistance.

Requires (current law authorizes) the Secretary of Labor to approve training for a trade-dislocated worker if certain circumstances exist. Authorizes paying for such training through a voucher system. Limits the amount of payments for such training to $4,000 for each worker. Sets forth the type of training programs that may be approved.

Requires firms, in order to receive trade adjustment assistance, to have entered an agreement which: (1) provides for the modernization of the industry and a gradual elimination of trade adjustment assistance to such firm; and (2) has been approved by the National Commission on Industrial Competitiveness.

Eliminates the termination date for trade adjustment assistance for workers and firms.

Establishes in the Treasury a Trade Adjustment Assistance Fund. Provides for the transfer to such Fund of the amounts attributable to: (1) a specified duty imposed by the Competitive America Trade Reform Act of 1985; and (2) certain other amounts paid into the general fund by the Secretary of Labor. Requires annual reports to the Congress on the Trust Fund.

Requires the USTR to enter into negotiations to achieve changes in the GATT that would allow a country to impose a small uniform duty on all imports in order to fund a program that assists workers and firms of such country in adjusting to import competition.

Imposes a one-percent duty on all imports into the United States.