§2902 Trade Agreement Negotiating Authority

Summary

The President may make trade deals with other countries before June 1, 1993 if he finds that foreign or U.S. import duties or rules are unfairly hurting U.S. trade or the U.S. economy. To carry out those deals, he can change, keep, or add duties, or keep duty-free treatment. He cannot cut a duty (except ones that were 5 percent ad valorem or less on August 23, 1988) to less than half of what it was on August 23, 1988, and he cannot raise a duty above its August 23, 1988 level. Any duty cuts must follow a staged limit: the total cut for an item cannot be bigger than what would have happened if a 3 percent ad valorem cut, or a cut equal to one-tenth of the total reduction (whichever is larger), had started on the date of the first cut. Items not made in the United States may be exempt from that staging; the U.S. International Trade Commission will tell the President which items those are. The President may round yearly cuts to simplify them, but only by the smaller of the difference to the next lower whole number or 0.5 percent. No duty reduction may take effect more than 10 years after the first cut. Any change that would break the August 23, 1988 limits can only happen if Congress passes an implementing bill under section 2903. Before June 1, 1993 the President may also make two-country (bilateral) deals to cut U.S. duties or other trade barriers, but only if the foreign country asks, the deal moves toward the goals in section 2901, and the President gives written notice and consults with the House Ways and Means Committee and the Senate Finance Committee at least 60 days before the notice required under section 2903(a)(1)(A). No country gets benefits automatically because another country did. Before entering any agreement under the non-tariff or bilateral rules, the President must consult those two committees and any other congressional committees that would be affected, and must discuss what the agreement will do and how it would be carried out. If the Uruguay Round talks under the General Agreement on Tariffs and Trade did not finish by May 31, 1993, the President may, between after May 31, 1993 and before April 16, 1994, enter agreements from those talks. Tariff changes from those Uruguay Round agreements cannot take effect until the law that implements their non-tariff parts is in force. Special timing rules apply to the implementing and “fast track” process for those Uruguay Round agreements (including using 120 days instead of 90 in one notice rule), and an advisory committee report must be sent to the President, Congress, and the U.S. Trade Representative within 30 days after the President gives the notice under section 2903(a)(1)(A), but before January 15, 1994.