(2) the term "distortion" includes a subsidy; and (A) trade in both goods and services, and (B) foreign direct investment by United States persons, especially if such investment has implications for trade in goods and services. Sec. 103.12 Overall Negotiating Objective. The overall United States negotiating objective under sections 101 and 102 shall be to obtain more open and equitable market access and the harmonization, reduction, or elimination of devices which distort trade or commerce. To the maximum extent feasible, the harmonization, reduction, or elimination of agricultural trade barriers and distortions shall be undertaken in conjunction with the harmonization, reduction, or elimination of industrial trade barriers and distortions. Sec. 104.13 Sector Negotiating Objective. (a) A principal United States negotiating objective under sections 101 and 102 shall be to obtain, to the maximum extent feasible, with respect to appropriate product sectors of manufacturing, and with respect to the agricultural sector, competitive opportunities for United States exports to the developed countries of the world equivalent to the competitive opportunities afforded in United States markets to the importation of like or similar products, taking into account all barriers (including tariffs) to and other distortions of international trade affecting that sector. (b) As a means of achieving the negotiating objective set forth in subsection (a), to the extent consistent with the objective of maximizing overall economic benefit to the United States (through maintaining and enlarging foreign markets for products of United States agriculture, industry, mining, and commerce, through the development of fair and equitable market opportunities, and through open and discriminatory world trade), negotiations shall, to the extent feasible, be conducted on the basis of appropriate product sectors of manufacturing. (c) For the purposes of this section and section 135, the Special Representative for Trade Negotiations 14 together with the Secretary of Commerce, Agriculture, or Labor, as appropriate, shall, after consultation with the Advisory Committee for Trade Negotiations established under section 135 and after consultation with interested private or non-Federal governmental 15 organizations, identify appropriate product sectors of manufacturing. (d) If the President determines that competitive opportunities in one or more product sectors will be significantly affected by a trade agreement concluded under sections 101 or 102, he shall submit to 11 Sec. 307(a) of the International Trade and Investment Act (title III of Public Law 98-573; 98 Stat. 3012) amended and restated par. (3). Previously, the term "international trade" had been defined as including only goods and services. 12 19 U.S.C. 2113. 13 19 U.S.C. 2114. 14 This position was redesignated as the United States Trade Representative pursuant to sec. 1(b)(1) of Reorganization Plan No. 3 of 1979. 15 Sec. 306(c)(2)(C)(i) of the International Trade and Investment Act (title III of Public Law 98573; 98 Stat. 3012) added the words "or non-Federal governmental". the Congress with each such agreement an analysis of the extent to which the negotiating objective set forth in subsection (a) is achieved by such agreement in each product sector or product sectors. Sec. 104A.16 Negotiating Objectives With Respect to Trade in Services, Foreign Direct Investment, and High Technology Products. (a) TRADE IN SERVICES. (1) IN GENERAL-Principal United States negotiating objectives under section 102 shall be (A) to reduce or to eliminate barriers to, or other distortions of, international trade in services (particularly United States service sector trade in foreign markets), including barriers that deny national treatment and restrictions on the establishment and operation in such markets; and (B) to develop internationally agreed rules, including dispute settlement procedures, which (i) are consistent with the commercial policies of the United States, and (ii) will reduce or eliminate such barriers or distortions and help ensure open international trade in services. (2) DOMESTIC OBJECTIVES.-In pursuing the objectives described in paragraph (1), United States negotiations shall take into account legitimate United States domestic objectives including, but not limited to, the protection of legitimate health or safety, essential security, environmental, consumer or employment opportunity interests and the laws and regulations related thereto. (b) FOREIGN DIRECT INVESTMENT. (1) IN GENERAL-Principal United States negotiating objectives under section 102 shall be (A) to reduce or to eliminate artificial or trade-distorting barriers to foreign direct investment, to expand the principle of national treatment, and to reduce unreasonable barriers to establishment; and (B) to develop internationally agreed rules, including dispute settlement procedures, which— (i) will help ensure a free flow of foreign direct investment, and (ii) will reduce or eliminate the trade distortive effects of certain investment related measures. (2) DOMESTIC OBJECTIVES.-In pursuing the objectives described in paragraph (1), United States negotiators shall take into account legitimate United States domestic objectives including, but not limited to, the protection of legitimate health or safety, essential security, environmental, consumer or em 16 19 U.S.C. 2114a. Sec. 305(a) of the International Trade and Investment Act (title III of Public Law 98-573; 98 Stat. 3006) added sec. 104A. Sec. 308(a) of such Act further states that the President may enter into bilateral or multilateral agreements to achieve the objectives of sec. 104A. See page 277 for text of sec. 308(a). ployment opportunity interests and the laws and regulations related thereto. (c) HIGH TECHNOLOGY PRODUCTS.-Principal United States negotiating objectives shall be (1) to obtain and preserve the maximum openness with respect to international trade and investment in high technology products and related services; (2) to obtain the elimination or reduction of, or compensation for, the significantly distorting effects of foreign government acts, policies, or practices identified in section 181, with particular consideration given to the nature and extent of foreign government intervention affecting United States exports of high technology products or investments in high technology industries, including— (A) foreign industrial policies which distort international trade or investment; (B) measures which deny national treatment or otherwise discriminate in favor of domestic high technology industries; (C) measures which fail to provide adequate and effective means for foreign nationals to secure, exercise, and enforce exclusive rights in intellectual property (including trademarks, patents, and copyrights); (D) measures which impair access to domestic markets for key commodity products; and (E) measures which facilitate or encourage anticompetitive market practices or structures; (3) to obtain commitments that official policy of foreign countries or instrumentalities will not discourage government or private procurement of foreign high technology products and related services; (4) to obtain the reduction or elimination of all tariffs on, and other barriers to, United States exports of high technology products and related services; (5) to obtain commitments to foster national treatment; (A) foster the pursuit of joint scientific cooperation between companies, institutions or governmental entities of the United States and those of the trading partners of the United States in areas of mutual interest through such measures as financial participation and technical and personnel exchanges, and (B) ensure that access by all participants to the results of any such cooperative efforts should not be impaired; and (7) to provide effective minimum safeguards for the acquisition and enforcement of intellectual property rights and the property value of proprietary data. (d) DEFINITION OF BARRIERS AND OTHER DISTORTIONS.-For purposes of subsection (a), the term barriers to, or other distortions of, international trade in services' includes, but is not limited to (1) barriers to establishment in foreign markets, and (2) restrictions on the operation of enterprises in foreign arkets, including (A) direct or indirect restrictions on the transfer of information into, or out of, the country or instrumentality concerned, and (B) restrictions on the use of data processing facilities within or outside of such country or instrumentality. Sec. 105.17 Bilateral Trade Agreements. If the President determines that bilateral trade agreements will more effectively promote the economic growth of, and full employment in, the United States, then, in such cases, a negotiating objective under sections 101 and 102 shall be to enter into bilateral trade agreements. Each such trade agreement shall provide for mutually advantageous economic benefits. Sec. 106.18 Agreements With Developing Countries. A United States negotiating objective under sections 101 and 102 shall be to enter into trade agreements which promote the economic growth of both developing countries and the United States and the mutual expansion of market opportunities. Sec. 107.19 International Safeguard Procedures. (a) A principal United States negotiating objective under section 102 shall be to obtain internationally agreed upon rules and procedures, in the context of the harmonization, reduction, or elimination of barriers to, and other distortions of, international trade, which permit the use of temporary measures to ease adjustment to changes occurring in competitive conditions in the domestic markets of the parties to an agreement resulting from such negotiations due to the expansion of international trade. (b) Any agreement entered into under section 102 may include provisions establishing procedures for (1) notification of affected exporting countries, (2) international consultations, (3) international review of changes in trade flows, (4) making adjustments in trade flows as the result of such changes, and (5) international mediation. Such agreements may also include provisions which (A) exclude, under specified conditions, the parties thereto from compensation obligations and retaliation, and (B) permit domestic public procedures through which interested parties have the right to participate. Sec. 108.20 Access Supplies. (a) A principal United States negotiating objective under section 102 shall be to enter into trade agreements with foreign countries and instrumentalities to assure the United States of fair and equitable access at reasonable prices to supplies of articles of commerce which are important to the economic requirements of the United 17 19 U.S.C. 2115. 18 19 U.S.C. 2116. 19 19 U.S.C. 2117. 20 19 U.S.C. 2118. States and for which the United States does not have, or cannot easily develop, the necessary domestic productive capacity to supply its own requirements. (b) Any agreement entered into under section 102 may include provisions which (1) assure to the United States the continued availability of important articles at reasonable prices, and (2) provide reciprocal concessions or comparable trade obligations, or both, by the United States. Sec. 109.21 Staging Requirements and Rounding Authority. (a) Except as otherwise provided in this section, the aggregate reduction in the rate of duty on any article which is in effect on any day pursuant to a trade agreement under section 101 shall not exceed the aggregate reduction which would have been in effect on such day if (1) A reduction of 3 percent ad valorem or a reduction of onetenth of the total reduction, whichever is greater, had taken effect on the effective date of the first reduction proclaimed pursuant to section 101(a)(2) to carry out such agreement with respect to such article, and (2) a reduction equal to the amount applicable under paragraph (1) had taken effect at 1-year intervals after the effective date of such first reduction.22 This subsection shall not apply in any case where the total reduction in the rate of duty does not exceed 10 percent of the rate before the reduction. (b) If the President determines that such action will simplify the computation of the amount of duty imposed with respect to an article, he may exceed the limitation provided by section 101(b) or subsection (a) of this section by not more than whichever of the following is lesser: (1) the difference between the limitation and the next lower whole number, or (2) one-half of 1 percent ad valorem. (c)(1) No reduction in the rate of duty on any article pursuant to a trade agreement under section 101 shall take effect more than 10 years after the effective date of the first reduction proclaimed to carry out such trade agreement with respect to such article. (2) If any part of a reduction takes effect, then any time thereafter during which any 23 part of the reduction is not in effect by reason of legislation of the United States or action thereunder, the effect of which is to maintain or increase the rate of duty on an article, shall be excluded in determining (A) the 1-year intervals referred to in subsection (a)(2), and (B) the expiration of the 10-year period referred to in paragraph (1) of this subsection. 21 19 U.S.C. 2119. 22 However, sec. 503 of Public Law 96-39 (Trade Agreements Act of 1979; 93 Stat. 251) lists items for which the aggregate reduction in the rate of duty may exceed the limitation contained in sec. 109(a). 23 The word "any" was substituted in lieu of "such" by sec. 1106(c)(3) of Public Law 96-39 (Trade Agreements Act of 1979; 93 Stat. 312). |