§ 409. SUBSIDIES.

1,285 words·~6 min read·/usc/title-19/section-409

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Negotiating Authority.— The President is authorized to enter into an agreement with Canada, including an agreement to amend the Agreement, on rules applicable to trade between the United States and Canada that— deal with unfair pricing and government subsidization, and provide for increased discipline on subsidies. The objectives of the United States in negotiating an agreement under paragraph

(1)include (but are not limited to)— achievement, on an expedited basis, of increased discipline on government production and export subsidies that have a significant impact, directly or indirectly, on bilateral trade between the United States and Canada; and attainment of increased and more effective discipline on those Canadian Government (including provincial) subsidies having the most significant adverse impact on United States producers that compete with subsidized products of Canada in the markets of the United States and Canada. Special emphasis should be given in negotiating an agreement under paragraph

(1)to obtain discipline on Canadian subsidy programs that adversely affect United States industries which directly compete with subsidized imports. The United States members of the working group established under article 1907 of the Agreement shall consult regularly with the Committee on Finance of the Senate, the Committee on Ways and Means of the House of Representatives, and advisory committees established under section 135 of the Trade Act of 1974 [ 19 U.S.C. 2155 ] regarding— the issues being considered by the working group; and as appropriate, the objectives and strategy of the United States in the negotiations. Notwithstanding any other provision of this Act or of any other law, the provisions of section 151 of the Trade Act of 1974 ( 19 U.S.C. 2191 ) shall not apply to any bill or joint resolution that implements an agreement entered into under paragraph (1), unless the President determines and notifies the Congress that such agreement— will provide greater discipline over government subsidies and no less discipline over unfair pricing practices by producers than that provided by the agreements described in paragraphs

(5)and

(6)of section 2[(c)] of the Trade Agreements Act of 1979 [ 19 U.S.C. 2503(c)(5) , (6)] (the Subsidies Code and Antidumping Code), respectively, taking into account the effects of the Agreement, and will neither undermine such multilateral discipline nor detract from United States efforts to increase such discipline on a multilateral basis in, or subsequent to, the Uruguay Round of multilateral trade negotiations. Identification of Industries Facing Subsidized Imports.— Any entity, including a trade association, firm, certified or recognized union, or group of workers, that is representative of a United States industry and has reason to believe that— as a result of implementation of provisions of the Agreement, the industry is likely to face increased competition from subsidized Canadian imports with which it directly competes; or the industry is likely to face increased competition from subsidized imports with which it directly competes from any other country designated by the President, following consultations with the Congress, as benefitting from a reduction of tariffs or other trade barriers under a trade agreement that enters into force after January 1, 1989 ; and the industry is likely to experience a deterioration of its competitive position before rules and disciplines relating to the use of government subsidies have been developed with respect to such country; may file a petition with the United States Trade Representative (hereafter referred to in this section as the ‘Trade Representative’) to be identified under this section. Within 90 days of receipt of a petition under paragraph (1), the Trade Representative, in consultation with the Secretary of Commerce, shall decide whether to identify the industry on the basis that there is a reasonable likelihood that the industry may face both the subsidization described in paragraph (1)(A) and the deterioration described in paragraph (1)(B). At the request of an entity that is representative of an industry identified under paragraph (2), the Trade Representative shall— compile and make available to the industry information under section 308 of the Trade Act of 1974 [ 19 U.S.C. 2418 ], recommend to the President that an investigation by the United States International Trade Commission be requested under section 332 of the Tariff Act of 1930 [ 19 U.S.C. 1332 ], or take actions described in both subparagraphs

(A)and (B). The industry may request the Trade Representative to take appropriate action to update (as often as annually) any information obtained under subparagraph

(A)or (B), or both, as the case may be, until an agreement on adequate rules and disciplines relating to government subsidies is reached. The Trade Representative and the Secretary of Commerce shall review information obtained under paragraph

(3)and consult with the industry identified under paragraph

(2)with a view to deciding whether any action is appropriate under section 301 of the Trade Act of 1974 [ 19 U.S.C. 2411 ], including the initiation of an investigation under section 302(c) of that Act [ 19 U.S.C. 2412(c) ] (in the case of the Trade Representative), or under subtitle A of title VII of the Tariff Act of 1930 [ 19 U.S.C. 1671 et seq.], including the initiation of an investigation under section 702(a) of that Act [ 19 U.S.C. 1671a(a) ] (in the case of the Secretary of Commerce). In determining whether to initiate any investigation under section 301 of the Trade Act of 1974 [ 19 U.S.C. 2411 ] or any other trade law, other than title VII of the Tariff Act of 1930 [ 19 U.S.C. 1671 et seq.], the Trade Representative, after consultation with the Secretary of Commerce— shall seek the advice of the advisory committees established under section 135 of the Trade Act of 1974 [ 19 U.S.C. 2155 ]; shall consult with the Committee on Finance of the Senate and the Committee on Ways and Means of the House of Representatives; shall coordinate with the interagency committee established under section 242 of the Trade Expansion Act of 1962 [ 19 U.S.C. 1872 ]; and may ask the President to request advice from the United States International Trade Commission. In the event an investigation is initiated under section 302(c) of the Trade Act of 1974 [ 19 U.S.C. 2412(c) ] as a result of a review under this paragraph and the President, following such investigation (including any applicable dispute settlement proceedings under the Agreement or any other trade agreement), determines to take action under section 301(a) of such Act [ 19 U.S.C. 2411(a) ], the President shall give preference to actions that most directly affect the products that benefit from governmental subsidies and were the subject of the investigation, unless there are no significant imports of such products or the President otherwise determines that application of the action to other products would be more effective. Any decision, whether positive or negative, or any action by the Trade Representative or the Secretary of Commerce under this section shall not in any way— prejudice the right of any industry to file a petition under any trade law, prejudice, affect, or substitute for, any proceeding, investigation, determination, or action by the Secretary of Commerce, the United States International Trade Commission, or the Trade Representative pursuant to such a petition, prejudice, affect, substitute for, or obviate any proceeding, investigation, or determination under section 301 of the Trade Act of 1974 [ 19 U.S.C. 2411 ], title VII of the Tariff Act of 1930 [ 19 U.S.C. 1671 et seq.], or any other trade law. Nothing in this subsection may be construed to alter in any manner the requirements in effect before the enactment of this Act [ Sept. 28, 1988 ] for standing under any law of the United States or to add any additional requirements for standing under any law of the United States.

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