(b) 33 While there is in effect with respect to any article any action taken under section 203 of this Act, or section 232 or 351 of the Trade Expansion Act of 1962 (19 U.S.C. 1862 or 1981), the President shall reserve such article from negotiations under this title (and from any action under section 122(c)) contemplating reduction or elimination of

(A) any duty on such article,

(B) any import restriction imposed under such section, or

(C) any other import restriction, the removal of which will be likely to undermine the effect of the import restrictions referred to in subparagraph (B).

In addition, the President shall also so reserve any other article which he determines to be appropriate, taking into consideration information and advice available pursuant to and with respect to the matters covered by sections 131, 132, and 133, where applicable. (c) 34 The President shall submit to the Congress an annual report on section 232 of the Trade Expansion Act of 1962. Within 60 days after he takes any action under such section 232, the President shall report to the Congress the action taken and the reasons therefor.

Sec. 128.35 Modification and Continuance of Treatment With Respect to Duties on High Technology Products.

(a) In order to carry out any agreement concluded as a result of the negotiating objectives under section 104A(c), the President may proclaim, subject to the provisions of chapter 3

(1) such modification, elimination, or continuance of any existing duty, duty-free, or excise treatment, or

(2) such additional duties,

as he deems appropriate.

(b) The President shall exercise his authority under subsection (a) only with respect to the following items listed in the Tariff Schedules of the United States (19 U.S.C. 1202):

6).

(1) Transistors (provided for in item 587.70, part 5, schedule

(2) Diodes and rectifiers (provided for in item 687.72, part 5, schedule 6).

(3) Monolithic integrated circuits (provided for in item 687.74, part 5, schedule 6).

(4) Other integrated circuits (provided for in item 687.77, part 5, schedule 6).

(5) Other components (provided for in item 687.85, part 5, schedule 6).

(6) Parts of semiconductors (provided for in item 687.85, part 5, schedule 6).

(7) Parts of automatic data-processing machines and units thereof (provided for in item 676.52, part 4G, schedule 6) other than parts incorporating a cathode ray tube.

19 U.S.C. 1863. Subsec. (d) provided for an amendment to sec. 232 of the Trade Expansion Act of 1982. See page 149 for text of sec. 232.

as 19 U.S.C. Sec. 308(b)(1) of the International Trade and Investment Act (title III of Public Law 98-573; 98 Stat. 3013) added sec. 128.

(c) TERMINATION.-The President may exercise his authority under this section only during the 5-year period beginning on the date of the enactment of the International Trade and Investment Act. 36

CHAPTER 3-HEARINGS AND ADVICE CONCERNING NEGOTIATIONS Sec. 131. International Trade Commission Advice.

(a) In connection with any proposed trade agreement under chapter 1 or section 123 or 124, the President shall from time to time publish and furnish the International Trade Commission (hereafter in this section referred to as the "Commission") with lists of articles which may be considered for modification or continuance of United States duties, continuance of United States duty-free or excise treatment, or additional duties. In the case of any article with respect to which consideration may be given to reducing or increasing the rate of duty, the list shall specify the provision of this title pursuant to which such consideration may be given.

(b) Within 6 months after receipt of such a list or, in the case of a list submitted in connection with a trade agreement authorized under section 123, within 90 days after receipt of such list, the Commission shall advise the President with respect to each article of its judgment as to the probable economic effect of modifications of duties on industries producing like or directly competitive articles and on consumers, so as to assist the President in making an informed judgment as to the impact which might be caused by such modifications on United States manufacturing, agriculture, mining, fishing, labor, and consumers. Such advice may include in the case of any article the advice of the Commission as to whether any reduction in the rate of duty should take place over a longer period than the minimum periods provided by section 109(a).

(c) In addition, in order to assist the President in his determination of whether to enter into any agreement under section 102, the Commission shall make such investigations and reports as may be requested by the President, including, where feasible, advice as to the probable economic effects of modifications of any barrier to (or other distortion of) international trade on domestic industries and purchasers and on prices and quantities of articles in the United States.

(d) In preparing its advice to the President under this section, the Commission shall, to the extent practicable

(1) investigate conditions, causes, and effects relating to competition between the foreign industries producing the articles in question and the domestic industries producing the like or directly competitive articles;

(2) analyze the production, trade, and consumption of each like or directly competitive article, taking into consideration employment, profit levels, and use of productive facilities with respect to the domestic industries concerned, and such other economic factors in such industries as it considers relevant, in

36 Such Act became effective on October 30, 1984.

cluding prices, wages, sales, inventories, patterns of demand, capital investment, obsolescence of equipment, and diversification of production;

(3) describe the probable nature and extent of any significant change in employment, profit levels, use of productive facilities, and such other conditions as it deems relevant in the domestic industries concerned which it believes such modifications would cause; and

(4) make special studies (including studies of real wages paid in foreign supplying countries), whenever deemed to be warranted, of particular proposed modifications affecting United States manufacturing, agriculture, mining, fishing, labor, and consumers, utilizing to the fullest extent practicable United States Government facilities abroad and appropriate personnel of the United States.

(e) In preparing its advice to the President under this section, the Commission shall, after reasonable notice, hold public hearings. Sec. 132.37 Advice from Departments and Other Sources.

Before any trade agreement is entered into under chapter 1 or section 123 or 124, the President shall seek information and advice with respect to such agreement from the Departments of Agriculture, Commerce, Defense, Interior, Labor, State, and the Treasury, from the Special Representative for Trade Negotiations, 38 and from such other sources as he may deem appropriate.

Sec. 133.39 Public Hearings.

(a) In connection with any proposed trade agreement under chapter 1 or section 123 or 124, the President shall afford an opportunity for any interested person to present his views concerning any article on a list published pursuant to section 131, any article which should be so listed, any concession which should be sought by the United States, or any other matter relevant to such proposed trade agreement. For this purpose, the President shall designate an agency or an interagency committee which shall, after reasonable notice, hold public hearings and prescribe regulations governing the conduct of such hearings.

(b) The organization holding such hearings shall furnish the President with a summary thereof.

Sec. 134.40 Prerequisites for Offers.

In any negotiations seeking an agreement under chapter 1 or section 123 or 124, the President may make an offer for the modification or continuance of any United States duty, import restrictions, or barriers to (or other distortions of) international trade, the continuance of United States duty-free or excise treatment, or the imposition of additional duties, import restriction, or other barrier to (or other distortion of) international trade, with respect to any article only after he has received a summary of the hearings at which

37 19 U.S.C. 2152.

38 This latter position was redesignated as the United States Trade Representative pursuant to sec. 1(bX1) of Reorganization Plan No. 3 of 1979.

39 19 U.S.C. 2153.

40 19 U.S.C. 2154.

an opportunity to be heard with respect to such article has been afforded under section 133. In addition, the President may make an offer for the modification or continuance of any United States duty, the continuance of United States duty-free or excise treatment, or the imposition of additional duties, with respect to any article included in a list published and furnished under section 131(a), only after he has received advice concerning such article from the International Trade Commission under section 131(b), or after the expiration of the 6-month or 90-day period provided for in that section, as appropriate, whichever first occurs.

Sec. 135.41 Advice from Private or Public Sector.

(a) The President 42 shall seek information and advice from representative elements of the private sector and the non-Federal 43 governmental sector with respect to negotiation objectives and bargaining positions before entering into a trade agreement referred to in section 101 or 102, with respect to the operation of any trade agreement once entered into, and with respect to other matters arising in connection with the administration of the trade policy of the United States.44

(b)(1) The President shall establish an Advisory Committee for Trade Negotiations to provide overall policy advice on matters referred to in subsection (a).45 The Committee shall be composed of not more than 45 individuals, and shall include representatives of government, labor, industry, agriculture, small business, service industries, retailers, consumer interests, and the general public.

(2) 46 The Committee shall meet at the call of the Special Representative for Trade Negotiations.38 The Chairman of the Committee shall be elected by the Committee from among its members. Members of the Committee shall be appointed by the President for a period of 2 years and may be reappointed for one or more additional periods.

(3) The Special Representative for Trade Negotiations 38 shall make available to the Committee such staff, information, personnel and administrative services and assistance as it may reasonably require to carry out its activities.

(c)(1) 46 The President may, on his own initiative, or at the request of organizations representing industry, labor, agriculture, or services, establish general policy advisory committees for industry, labor, agriculture, or services, respectively, to provide general policy advice on matters referred to in subsection (a). Such committees shall, insofar as is practicable, be representative of all indus

41 19 U.S.C. 2155. Sec. 306(c)(2)(B)(vi) of the International Trade and Investment Act (title III of Public Law 98-573; 98 Stat. 3011) added the reference to the Public Sector in the title to sec. 135. 42 The words "in accordance with the provisions of this section," which formerly appeared at this point, were struck out by sec. 1103(1) of Public Law 96-39 (Trade Agreements Act of 1979; 93 Stat. 308).

43 Sec. 306(c)(2)(B)(i) of the International Trade and Investment Act (title III of Public Law 98573; 98 Stat. 3011) added the words "and the non-Federal governmental sector".

44 The words to this point beginning with, ", with respect to" were added by sec. 1103(2) of Public Law 96-39 (Trade Agreement Act of 1979; 93 Stat. 308).

45 The words "matter referred to in subsection (a)" were substituted in lieu of the words "any trade agreement referred to in section 101 or 102" by sec. 1103(3) of Public Law 96-39 (Trade Agreements Act of 1979; 93 Stat. 308).

46 Subsecs. (b)(2) and (c)(1) were amended and restated by sec. 1103 of Public Law 96-39 (Trade Agreements Act of 1979; 93 Stat. 308).

try, labor, agricultural, and service interests, respectively, including small business interests, and shall be organized by the Special Representative for Trade Negotiations 38 and the Secretary of Commerce, Labor, or Agriculture, as appropriate.

(2) The President shall establish such sectoral or functional advisory committees as may be appropriate. Such committees shall, insofar as is practicable, be representative of all industry, labor, agricultural, or service interests (including small business interests) in the sector or functional areas concerned.47 In organizing such committees the Special Representative for Trade Negotiations 38 and the Secretary of Commerce, Labor, or Agriculture, as appropriate, 48 (A) shall consult with interested private organizations, and (B) shall take into account such factors as patterns of actual and potential competition between United States industry and agriculture and foreign enterprise in international trade, the character of the nontariff barriers and other distortions affecting such competition, the necessity for reasonable limits on the number of such 49 advisory committees, the necessity that each committee be reasonably limited in size, and that, in the case of each sectoral committee 50 the product lines covered by each committee be reasonably related.

(3) 51 The President

(A) may establish policy advisory committees representing non-Federal governmental interests to provide, where the President finds it necessary, policy advice

(i) on matters referred to in subsection (a), and

(ii) with respect to implementation of trade agreement,

and

(B) shall include as members of committees established under subparagraph (A) representatives of non-Federal governmental interests if he finds such inclusion appropriate after consultation by the United States Trade Representative with such representatives.

(d) 52 Committees established under subsection (c) shall meet at the call of the Special Representative for Trade Negotiations 38 and the Secretary of Agriculture, Commerce, or Labor, as appropriate, to provide policy advice, technical advice and information, and advice on other factors relevant to the matters referred to in subsection (a).

(e) The Advisory Committee for Trade Negotiations, each appropriate policy advisory committee, and each sector or functional ad

47 The first two sentences of subsec. (c)(2) were amended and restated by sec. 1103(6) of Public Law 96-39 (Trade Agreements Act of 1979; 93 Stat. 309).

48 As amended by sec. 1103(7) of Public Law 96-39 (Trade Agreements Act of 1979; 93 Stat. 309). Previously, the President, acting through the Special Trade Representative, participated in the organization of the committees.

49 The words "product sector" which previously appeared at this point, were struck out by sec. 1103(8) of Public Law 96-39 (Trade Agreements Act of 1979; 93 Stat. 309).

so The words ", in the case of each sectoral committee" were added by sec. 1103(9) of Public Law 96-39 (Trade Agreements Act of 1979; 93 Stat. 309).

$1 Sec. 306(c)2XBXii) of the International Trade and Investment Act (title III of Public Law 98-573; 98 Stat. 3011) added par. (3).

52 Subsec. (d) was amended and restated by sec. 1103(10) of Public Law 96-39 (Trade Agreements Act of 1979; 93 Stat. 309).