19 U.S.C. § 2112 — Barriers to and other distortions of trade

(a) Congress finds that international trade barriers and distortions reduce foreign markets for United States farm, industrial, mining, and commercial products; reduce the expected mutual benefits of reciprocal concessions; harm the United States economy; block fair access to supplies; and block open, nondiscriminatory trade. The President is urged to take all appropriate and feasible steps, including fully using United States rights under international agreements, to harmonize, reduce, or eliminate them. The President is also urged to use subsection (b) to negotiate reciprocal agreements doing so. This subsection does not approve in advance any legislation needed to implement an agreement.

(b)(1) During the 13-year period beginning January 3, 1975, the President may enter trade agreements if the President determines that a foreign country’s or the United States’ barriers or distortions unduly burden or restrict United States foreign trade, harm the United States economy, or are likely to do so, and that the agreement would advance this chapter’s purposes. The agreements may harmonize, reduce, or eliminate barriers or distortions, or prohibit or limit imposing them. (2)(A) An agreement reducing or eliminating a United States duty^* may be made under paragraph (1) only with Israel. (B) Negotiations with Israel must fully consider products receiving a discriminatory preferential tariff from Israel and a third country when the United States has challenged that preference under section 2411 and the General Agreement on Tariffs and Trade. (C) Subsections (c) and (e)(1) do not apply to such an Israel agreement. (3) No trade benefit may be extended to a country merely because another country received a benefit under such an agreement reducing or eliminating a United States duty. (4) Despite paragraph (2), such an agreement may be made with another country if that country requested negotiations and, at least 60 days before the notice under subsection (e)(1), the President gives written notice to the Senate Finance Committee and House Ways and Means Committee and consults them. The implementing-bill procedures in section 2191 do not apply if the bill approves such an agreement and those notice-and-consultation requirements were not met, or either committee disapproved negotiations before the 60-day period ended. That period excludes congressional adjournments of more than three days to a certain date, adjournment sine die, and Saturdays and Sundays when either House is not in session.

(c) Before entering an agreement, the President must consult the House Ways and Means Committee, Senate Finance Committee, and every House, Senate, and joint committee with jurisdiction over legislation affected by it. Consultation must cover implementation under subsections (d) and (e), including whether combining agreements in one bill is desirable and feasible.

(d) The President must submit the agreement, a section 2191(b) implementing-bill draft, and a statement of proposed administrative action to Congress as subsection (e) provides. The agreement takes effect for the United States only if subsection (e) is followed and the implementing bill becomes law.

(e) An agreement takes effect only if: (1) at least 90 days before entering it, the President tells both Houses of the intent to do so and promptly publishes notice in the Federal Register; (2) after entering it, the President sends both Houses the final legal text, an implementing-bill draft, proposed administrative action, an explanation of changes to existing law, and reasons the agreement benefits United States commerce and the bill and action are needed or appropriate; and (3) the implementing bill becomes law.

(f) To ensure a country receiving benefits also bears the agreement’s duties, the President may recommend that benefits and duties apply only to the agreement’s parties, or not uniformly to all parties, if the agreement permits that result.

(g) “Barrier” includes the American selling-price customs valuation basis under section 1401a or 1402 and any duty or other import restriction^*. “Distortion” includes a subsidy. “International trade” includes goods and services trade and United States persons’ foreign direct investment, especially investment affecting goods or services trade.