§ 2420. — Identification of trade expansion priorities.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 19USC2420]
TITLE 19--CUSTOMS DUTIES
CHAPTER 12--TRADE ACT OF 1974
SUBCHAPTER III--ENFORCEMENT OF UNITED STATES RIGHTS UNDER TRADE
AGREEMENTS AND RESPONSE TO CERTAIN FOREIGN TRADE PRACTICES
Sec. 2420. Identification of trade expansion priorities
(a) Identification
(1) Within 180 days after the submission in calendar year 1995 of
the report required by section 2241(b) of this title, the Trade
Representative shall--
(A) review United States trade expansion priorities,
(B) identify priority foreign country practices, the elimination
of which is likely to have the most significant potential to
increase United States exports, either directly or through the
establishment of a beneficial precedent, and
(C) submit to the Committee on Finance of the Senate and the
Committee on Ways and Means of the House of Representatives and
publish in the Federal Register a report on the priority foreign
country practices identified.
(2) In identifying priority foreign country practices under
paragraph (1) of this section, the Trade Representative shall take into
account all relevant factors, including--
(A) the major barriers and trade distorting practices described
in the National Trade Estimate Report required under section 2241(b)
of this title;
(B) the trade agreements to which a foreign country is a party
and its compliance with those agreements;
(C) the medium- and long-term implications of foreign government
procurement plans; and
(D) the international competitive position and export potential
of United States products and services.
(3) The Trade Representative may include in the report, if
appropriate--
(A) a description of foreign country practices that may in the
future warrant identification as priority foreign country practices;
and
(B) a statement about other foreign country practices that were
not identified because they are already being addressed by
provisions of United States trade law, by existing bilateral trade
agreements, or as part of trade negotiations with other countries
and progress is being made toward the elimination of such practices.
(b) Initiation of investigations
By no later than the date which is 21 days after the date on which a
report is submitted to the appropriate congressional committees under
subsection (a)(1) of this section, the Trade Representative shall
initiate under section 2412(b)(1) of this title investigations under
this subchapter with respect to all of the priority foreign country
practices identified.
(c) Agreements for elimination of barriers
In the consultations with a foreign country that the Trade
Representative is required to request under section 2413(a) of this
title with respect to an investigation initiated by reason of subsection
(b) of this section, the Trade Representative shall seek to negotiate an
agreement that provides for the elimination of the practices that are
the subject of the investigation as quickly as possible or, if
elimination of the practices is not feasible, an agreement that provides
for compensatory trade benefits.
(d) Reports
The Trade Representative shall include in the semiannual report
required by section 2419 of this title a report on the status of any
investigations initiated pursuant to subsection (b) of this section and,
where appropriate, the extent to which such investigations have led to
increased opportunities for the export of products and services of the
United States.
(Pub. L. 93-618, title III, Sec. 310, as added Pub. L. 100-418, title I,
Sec. 1302(a), Aug. 23, 1988, 102 Stat. 1176; amended Pub. L. 103-465,
title III, Sec. 314(f), Dec. 8, 1994, 108 Stat. 4941.)
Amendments
1994--Pub. L. 103-465 amended section generally, changing dates and
criteria for submission of certain reports and revising and
restructuring provisions relating to identification of trade
liberalization priorities, initiation of investigations, and agreements
for elimination of barriers.
Ex. Ord. No. 12901. Identification of Trade Expansion Priorities
Ex. Ord. No. 12901, Mar. 3, 1994, 59 F.R. 10727, as amended by Ex.
Ord. No. 12973, Sept. 27, 1995, 60 F.R. 51665, provided:
By the authority vested in me as President by the Constitution and
the laws of the United States of America, including sections 141 and
301-310 of the Trade Act of 1974, as amended (the ``Act'') (19 U.S.C.
2171, 2411-2420), and section 301 of title 3, United States Code, and to
ensure that the trade policies of the United States advance, to the
greatest extent possible, the export of the products and services of the
United States and that trade policy resources are used efficiently, it
is hereby ordered as follows:
Section 1. Identification. (a) Within 6 months of the submission of
the National Trade Estimate Report (required by section 181(b) of the
Act (19 U.S.C. 2241)) for 1996 and 1997, the United States Trade
Representative (``Trade Representative'') shall review United States
trade expansion priorities and identify priority foreign country
practices, the elimination of which is likely to have the most
significant potential to increase United States exports, either directly
or through the establishment of a beneficial precedent. The Trade
Representative shall submit to the Committee on Finance of the Senate
and the Committee on Ways and Means of the House of Representatives, and
shall publish in the Federal Register, a report on the priority foreign
country practices identified.
(b) In identifying priority foreign country practices under
paragraph (a) of this section, the Trade Representative shall take into
account all relevant factors, including:
(1) the major barriers and trade distorting practices described
in the National Trade Estimate Report;
(2) the trade agreements to which a foreign country is a party
and its compliance with those agreements;
(3) the medium-term and long-term implications of foreign
government procurement plans; and
(4) the international competitive position and export potential
of United States products and services.
(c) The Trade Representative may include in the report, if
appropriate, a description of the foreign country practices that may in
the future warrant identification as priority foreign country practices.
The Trade Representative also may include a statement about other
foreign country practices that were not identified because they are
already being addressed by provisions of United States trade law,
existing bilateral trade agreements, or in trade negotiations with other
countries and progress is being made toward their elimination.
Sec. 2. Initiation of Investigation. Within 21 days of the
submission of the report required by paragraph (a) of section 1, the
Trade Representative shall initiate under section 302(b)(1) of the Act
(19 U.S.C. 2412(b)(1)) investigations under title III, chapter 1, of the
Act [19 U.S.C. 2411 et seq.] with respect to all of the priority foreign
country practices identified.
Sec. 3. Agreements for the Elimination of Barriers. In the
consultations with a foreign country that the Trade Representative is
required to request under section 303(a) of the Act (19 U.S.C. 2413(a))
with respect to an investigation initiated by reason of section 2 of
this order, the Trade Representative shall seek to negotiate an
agreement that provides for the elimination of the practices that are
the subject of the investigation as quickly as possible or, if that is
not feasible, provides for compensatory trade benefits. The Trade
Representative shall monitor any agreement entered into under this
section pursuant to the provisions of section 306 of the Act (19 U.S.C.
2416).
Sec. 4. Reports. The Trade Representative shall include in the
semiannual report required by section 309 of the Act (19 U.S.C. 2419) a
report on the status of any investigation initiated pursuant to section
2 of this order and, where appropriate, the extent to which such
investigations have led to increased opportunities for the export of
products and services of the United States.
Sec. 5. Presidential Direction. The authorities delegated pursuant
to this order shall be exercised subject to any subsequent direction by
the President in a particular matter.
William J. Clinton.
Ex. Ord. No. 13116. Identification of Trade Expansion Priorities and
Discriminatory Procurement Practices
Ex. Ord. No. 13116, Mar. 31, 1999, 64 F.R. 16333, provided:
By the authority vested in me as President by the Constitution and
the laws of the United States of America, including title III of the Act
of March 3, 1993 [1933], as amended (41 U.S.C. 10d), sections 141 and
301-310 of the Trade Act of 1974, as amended (the Act) (19 U.S.C. 2171,
2411-2420), title III of the Trade Agreements Act of 1979, as amended
(19 U.S.C. 2511-2518), and section 301 of title 3, United States Code,
and to ensure that the trade policies of the United States advance, to
the greatest extent possible, the export of the products and services of
the United States and that trade policy resources are used efficiently,
it is hereby ordered as follows:
Part I: Identification of Trade Expansion Priorities
Section 1. Identification and Annual Report. (a) Within 30 days of
the submission of the National Trade Estimate Report required by section
181(b) of the Act (19 U.S.C. 2241(b)) for 1999, 2000, and 2001, the
United States Trade Representative (Trade Representative) shall review
United States trade expansion priorities and identify priority foreign
country practices, the elimination of which is likely to have the most
significant potential to increase United States exports, either directly
or through the establishment of a beneficial precedent. The Trade
Representative shall submit to the Committee on Finance of the Senate
and the Committee on Ways and Means of the House of Representatives, and
shall publish in the Federal Register, a report on the priority foreign
country practices identified.
(b) In identifying priority foreign country practices under
paragraph (a) of this section, the Trade Representative shall take into
account all relevant factors, including:
(1) the major barriers and trade distorting practices described
in the National Trade Estimate Report;
(2) the trade agreements to which a foreign country is a party
and its compliance with those agreements;
(3) the medium-term and long-term implications of foreign
government procurement plans; and
(4) the international competitive position and export potential
of United States products and services.
(c) The Trade Representative may include in the report, if
appropriate, a description of the foreign country practices that may in
the future warrant identification as priority foreign country practices.
The Trade Representative also may include a statement about other
foreign country practices that were not identified because they are
already being addressed by provisions of United States trade law,
existing bilateral trade agreements, or in trade negotiations with other
countries and progress is being made toward their elimination.
Sec. 2. Resolution. Upon submission of the report required by
paragraph (a) of section 1 of this part, the Trade Representative shall,
with respect to any priority foreign country practice identified
therein, engage the country concerned for the purpose of seeking a
satisfactory resolution, for example, by obtaining compliance with a
trade agreement or the elimination of the practice as quickly as
possible, or, if this is not feasible, by providing for compensatory
trade benefits.
Sec. 3. Initiation of Investigations. Within 90 days of the
submission of the report required by paragraph (a) of section 1 of this
part, the Trade Representative shall initiate under section 302(b)(1) of
the Act (19 U.S.C. 2412(b)(1)) investigations with respect to all of the
priority foreign country practices identified, unless during the 90-day
period the Trade Representative determines that a satisfactory
resolution of the matter to be investigated has been achieved.
Part II: Identification of Discriminatory Government Procurement
Practices
Section 1. Identification and Annual Report. (a) Within 30 days of
the submission of the National Trade Estimate Report for 1999, 2000, and
2001, the Trade Representative shall submit to the Committees on Finance
and on Governmental Affairs of the Senate and the Committees on Ways and
Means and Government Reform and Oversight of the House of
Representatives, and shall publish in the Federal Register, a report on
the extent to which foreign countries discriminate against U.S. products
or services in making government procurements.
(b) In the report, the Trade Representative shall identify countries
that:
(1) are not in compliance with their obligations under the World
Trade Organization Agreement on Government Procurement (the GPA),
Chapter 10 of the North American Free Trade Agreement (NAFTA), or
other agreements relating to government procurement (procurement
agreements) to which that country and the United States are parties;
or
(2) maintain, in government procurement, a significant and
persistent pattern or practice of discrimination against U.S.
products or services that results in identifiable harm to U.S.
businesses and whose products or services are acquired in
significant amounts by the United States Government.
Sec. 2. Considerations in Making Identifications. In making the
identifications required by section 1 of this part, the Trade
Representative shall: (a) consider the requirements of the GPA, NAFTA,
or other procurement agreements, government procurement practices, and
the effects of such practices on U.S. businesses as a basis for
evaluating whether the procurement practices of foreign governments do
not provide fair market opportunities for U.S. products or services;
(b) take into account, among other factors, whether and to what
extent countries that are parties to the GPA, NAFTA, or other
procurement agreements, and other countries described in section 1 of
this part:
(1) use sole-sourcing or otherwise noncompetitive procedures for
procurement that could have been conducted using competitive
procedures;
(2) conduct what normally would have been one procurement as two
or more procurements, to decrease the anticipated contract values
below the value threshold of the GPA, NAFTA, or other procurement
agreements, or to make the procurement less attractive to U.S.
businesses;
(3) announce procurement opportunities with inadequate time
intervals for U.S. businesses to submit bids; and
(4) use specifications in such a way as to limit the ability of
U.S. suppliers to participate in procurements; and
(c) consider information included in the National Trade Estimate
Report, and any other additional criteria deemed appropriate, including,
to the extent such information is available, the failure to apply
transparent and competitive procedures or maintain and enforce effective
prohibitions on bribery and other corrupt practices in connection with
government procurement.
Sec. 3. Impact of Noncompliance and Denial of Comparable Treatment.
The Trade Representative shall take into account, in identifying
countries in the annual report and in any action required by this part,
the relative impact of any noncompliance with the GPA, NAFTA, or other
procurement agreements, or of other discrimination on U.S. commerce, and
the extent to which such noncompliance or discrimination has impeded the
ability of U.S. suppliers to participate in procurements on terms
comparable to those available to suppliers of the country in question
when seeking to sell goods or services to the United States Government.
Sec. 4. Resolution. Upon submission of the report required by
section 1 of this part, the Trade Representative shall engage any
country identified therein for the purpose of seeking a satisfactory
resolution, for example, by obtaining compliance with the GPA, NAFTA, or
other procurement agreements or the elimination of the discriminatory
procurement practices as quickly as possible, or, if this is not
feasible, by providing for compensatory trade benefits.
Sec. 5. Initiation of Investigations. (a) Within 90 days of the
submission of the report required by section 1 of this part, the Trade
Representative shall initiate under section 302(b)(1) of the Act (19
U.S.C. 2412(b)(1)) investigations with respect to any practice that:
(1) was the basis for the identification of a country under
section 1; and
(2) is not at that time the subject of any other investigation
or action under title III, chapter 1, of the Act [19 U.S.C. 2411 et
seq.],
unless during the 90-day period the Trade Representative determines that
a satisfactory resolution of the matter to be investigated has been
achieved.
(b) For investigations initiated under paragraph (a) of this section
(other than an investigation involving the GPA or NAFTA), the Trade
Representative shall apply the time limits and procedures in section
304(a)(3) of the Act (19 U.S.C. 2414(a)(3)). The time limits in
subsection 304(a)(3)(B) of the Act (19 U.S.C. 2414(a)(3)(B)) shall apply
if the Trade Representative determines that:
(1) complex or complicated issues are involved in the
investigation that require additional time;
(2) the foreign country involved in the investigation is making
substantial progress in drafting or implementing legislative or
administrative measures that will end the discriminatory procurement
practice; or
(3) such foreign country is undertaking enforcement measures to
end the discriminatory procurement practice.
Part III: Direction
Section 1. Presidential Direction. The authorities delegated
pursuant to this order shall be exercised subject to any subsequent
direction by the President in a particular matter.
Sec. 2. Consultations and Advice. In developing the annual reports
required by part I and part II of this order, the Trade Representative
shall consult with executive agencies and seek information and advice
from U.S. businesses in the United States and in the countries involved
in the practices under consideration.
William J. Clinton.
