§ 304. NEGOTIATIONS REGARDING CERTAIN SECTORS; BIENNIAL REPORTS.
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In General.— The President is authorized to enter into negotiations with the Government of Canada for the purpose of concluding an agreement (including an agreement amending the Agreement) or agreements to— liberalize trade in services in accordance with article 1405 of the Agreement; liberalize investment rules; improve the protection of intellectual property rights; increase the value requirement applied for purposes of determining whether an automotive product is treated as originating in Canada or the United States; and liberalize government procurement practices, particularly with regard to telecommunications.
As an exercise of the foreign relations powers of the President under the Constitution, the President will enter into immediate consultations with the Government of Canada to obtain the exclusion from the transport rates established under Canada’s Western Grain Transportation Act of agricultural goods that originate in Canada and are shipped via east coast ports for consumption in the United States. Negotiating Objectives Regarding Services, Investment, and Intellectual Property Rights.— The objectives of the United States in negotiations conducted under subsection (a)(1)(A) to liberalize trade in services include— with respect to developing services sectors not covered in the Agreement, the elimination of those tariff, nontariff, and subsidy trade distortions that have potential to affect significant bilateral trade; the elimination or reduction of measures grandfathered by the Agreement that deny or restrict national treatment in the provision of services; the elimination of local presence requirements; and the liberalization of government procurement of services.
In conducting such negotiations, the President shall consult with the services advisory committees established under section 135 of the Trade Act of 1974 ( 19 U.S.C. 2155 ). The objectives of the United States in any negotiations conducted under subsection (a)(1)(B) to liberalize investment rules include— the elimination of direct investment screening; the extension of the principles of the Agreement to energy and cultural industries, to the extent such industries are not currently covered by the Agreement; the elimination of technology transfer requirements and other performance requirements not currently barred by the Agreement; and the subjection of all investment disputes to dispute resolution under chapter 18 of the Agreement.
In conducting such negotiations, the President shall consult with persons representing diverse interests in the United States in investment. The objectives of the United States in any negotiations conducted under subsection (a)(1)(C) to improve the protection of intellectual property rights include— the recognition and adequate protection of intellectual property, including copyrights, patents, process patents, trademarks, mask works, and trade secrets; and the establishment of dispute resolution procedures and binational enforcement of intellectual property standards.
In conducting such negotiations, the President shall consult with persons representing diverse interests in the United States in intellectual property. Negotiating Objectives Regarding Automotive Products.— In conducting negotiations under subsection (a)(1)(D) regarding the value requirement for automotive products, the President shall seek to conclude an agreement by no later than January 1, 1990 , to increase the value requirement from 50 percent to at least 60 percent. The President is authorized, through January 1, 1999 , to proclaim any agreed increase in the value requirement.
As used in this section, the term ‘value requirement’ means the minimum percentage of the value of an automotive product that must be accounted for by the value of the materials in the product that originated in the United States or Canada, or both, plus the direct cost of processing or assembly performed in the United States or Canada, or both, with respect to the product. Negotiation of Limitation on Potato Trade.— During the 5-year period beginning on the date of enactment of this Act [ Sept. 28, 1988 ], the President is authorized to enter into negotiations with Canada for the purpose of obtaining an agreement to limit the exportation and importation of all potatoes between the United States and Canada, including seed potatoes, fresh, chilled or frozen potatoes, dried, desiccated or dehydrated potatoes, and potatoes otherwise prepared or preserved.
Any agreement negotiated under this subsection shall provide for an annual limitation divided equally into each half of the year. For the purpose of conducting negotiations under paragraph (1), the Secretary of Agriculture and the United States Trade Representative shall consult with representatives of the potato producing industry, including the Ad Hoc Potato Advisory Group and the United States/Canada Horticultural Industry Advisory Committee, to solicit their views on negotiations with Canada for reciprocal quantitative limits on the potato trade.
The President is authorized to direct the Secretary of the Treasury to— carry out such actions as may be necessary or appropriate to ensure the attainment of the objectives of any agreement that is entered into under this section; and enforce any quantitative limitation, restriction, and other terms contained in the agreement. Such actions may include, but are not limited to, requirements that valid export licenses or other documentation issued by a foreign government be presented as a condition for the entry into the United States of any article that is subject to the agreement.
The provisions of section 1204 of the Agriculture and Food Act of 1981 ( 7 U.S.C. 1736j ) and the last sentence of section 812 of the Agricultural Act of 1970 ( 7 U.S.C. 612c–3 ) shall not apply in the case of actions taken pursuant to this subsection. Canadian Controls on Fish.— Within 30 days of the application by Canada of export controls on unprocessed fish under statutes exempted from the Agreement under article 1203, or the application of landing requirements for fish caught in Canadian waters, the President shall take appropriate action to enforce United States rights under the General Agreement on Tariffs and Trade that are retained in article 1205 of the Agreement.
In enforcing the United States rights referred to in paragraph (1), the President has discretion to— bring a challenge to the offending Canadian practices before the GATT; retaliate against such offending practices; seek resolution directly with Canada; refer the matter for dispute resolution to the Canada-United States Trade Commission; or take other action that the President considers appropriate to enforce such United States rights. Biennial Report .— The President shall submit to the Congress, at the close of each biennial period occurring after the date on which the Agreement enters into force [ Jan. 1, 1989 ], a report regarding— the status of the negotiations regarding agreements that the President is authorized to enter into with Canada under this section; the effectiveness and operation of any agreement entered into under section 304 that is in force with respect to the United States; the effectiveness of operation of the Agreement generally; and the actions taken by the United States and Canada to implement further the objectives of the Agreement.
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- 7 USC 1736j
- 7 USC 612c–3
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§ 304
NEGOTIATIONS REGARDING CERTAIN SECTORS; BIENNIAL REPORTS.
Cite7 USC 1736j
Cite7 USC 612c–3
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