Omnibus Trade Act of 1987

Omnibus Trade Act of 1987 - Title I: Authority to Negotiate Trade Agreement - Grants the President, during a specified ten-year period, the authority to enter into multilateral trade agreements to reduce or eliminate trade barriers or distortions whenever the President determines that such barriers to, or distortions of, international trade: (1) unduly burden or restrict U.S. foreign trade or adversely affect the U.S. economy; or (2) are likely to result in such a burden, restriction, or effect. Limits the amount of reduction in duty that such agreements may involve.

Authorizes the President, during a specified ten-year period, to enter into bilateral trade agreements with foreign countries providing for the reduction or elimination of trade barriers or distortions. Provides that such a bilateral trade agreement may be entered into only if: (1) the foreign country requested the negotiation of such an agreement; and (2) the President provides 60 days' notice to specified congressional committees and consults with such committees.

Requires the President, before entering into negotiation of such a multilateral or bilateral trade agreement, to determine: (1) whether state trading enterprises account for a significant share of the exports of such foreign country or of the goods of such country that are subject to import competition; and (2) whether such state trading enterprises unduly burden or restrict, or adversely affect U.S. foreign trade or the U.S. economy or are likely to result in such a burden, restriction, or effect. Authorizes the President, if a country's state trading enterprises meet such criteria, to enter into a multilateral or bilateral trade agreement with such country only if such agreement provides that the state trading enterprises: (1) will make non-governmental purchases and sales in international trade in accordance with commercial considerations; and (2) will give U.S. businesses adequate opportunity to compete for participation in such purchases and sales.

Provides that a multilateral or bilateral trade agreement may be entered into only if the trade agreement: (1) meets at least one of the negotiating objectives described in this Act; (2) provides for the reciprocal exchange of obligations among the signatories to the agreement; (3) provides a reasonable likelihood that the United States can enforce the obligations of such agreement; and (4) complements and reinforces existing agreements with non-signatory countries and existing U.S. agreements on related economic subjects.

Requires the President, before entering into such a multilateral or bilateral trade agreement, to consult with specified congressional committees.

Requires the U.S. Trade Representative to consult with interested congressional committees on a continuing basis in order to inform the Congress of trade negotiations and the progress in meeting, and obstacles to achieving, U.S. trade negotiating objectives.

Provides that a multilateral or bilateral trade agreement entered into under this Act shall enter into force with respect to the United States if: (1) the President has notified the Congress of the intent to enter into such an agreement; (2) after entering into the agreement the President submits the final legal text of the agreement to the Congress together with other specified materials; and (3) the implementing bill is enacted. Authorizes the President to make certain recommendations to the Congress in order to ensure that a foreign country that receives benefits under a trade agreement is subject to obligations under the agreement. Imposes limitations on the use of expedited congressional procedures for the consideration of an implementing bill or approval resolution relating to such trade agreements.

Declares that the overall objectives of the United States in international trade negotiations shall be to obtain: (1) more open, fair, and equitable market access; (2) the reduction or elimination of barriers and other trade-distorting practices; (3) an appropriate overall balance between benefits and concessions within the agricultural, manufacturing, mining and service sectors; and (4) improved management of the new global economy. Sets forth the principal objectives in negotiating such agreements.

Amends the Trade Act of 1974 to declare that the principal U.S. negotiating objectives under the import relief provisions of such Act shall be to eliminate or reduce foreign barriers to equitable access by U.S. persons to foreign development technology. Requires the United States, in pursuing such objectives, to take into account U.S. policies in licensing or otherwise making available to foreign persons technology and other information developed by U.S. laboratories.

Provides termination and reservation authority for trade agreements entered into under this Act.

Requires the President to determine, after a specified five-year period, whether any major industrial country has failed to make reciprocal concessions under a trade agreement. Requires the President to recommend certain legislation to the Congress with respect to such a country if the country has failed to make such concessions.

Provides that no political party shall dominate the membership of specified trade advisory committees.

Requires the President to make the same determinations regarding state trading enterprises before a foreign country accedes to a multinational trade agreement to which the United States is a party that the President is required to make before entering into negotiation of a multilateral or bilateral trade agreement under this Act. Requires the President, if a country's state trading enterprises meet such criteria, to reserve the right of the United States to withhold extension of such agreement between the United States and such country. Provides that, if a country's state trading enterprises meet such criteria such trade agreement shall not apply between the United States and such country until: (1) such country and the United States enter into an agreement providing that the state trading enterprises will make certain purchases and sales in accordance with commercial considerations and will afford U.S. businesses an opportunity to compete for such purchases and sales; or (2) a bill which approves the extension of such agreement between the United States and such foreign country is enacted. Provides for expedited congressional consideration of such an implementing bill.

Requires the President to begin bilateral negotiations on an expedited basis with each foreign country which pegs its currency to the U.S. dollar to ensure that such country regularly adjusts the exchange rate between its currency and the dollar to reflect underlying economic fundamentals. Requires the President to submit to the Congress a semi-annual report on such negotiations and developments in the exchange rates.

Title II: Enhancing Competitiveness - Subtitle A: Positive Adjustment in Import-Impacted Industries - Amends the Trade Act of 1974 to change the chapter providing for import relief. Provides that a petition for eligibility for import relief for the purpose of facilitating orderly adjustment to import competition may be filed with the International Trade Commission (ITC) by any entity which is representative of an industry. Requires the petition to include a statement describing the specific purposes for which import relief is being sought.

Requires the ITC to begin an investigation to determine whether an article is being imported in such increased quantities as to be a substantial cause of serious injury, or threat of serious injury, to a competing domestic industry upon: (1) request of the President or the U.S. Trade Representative (USTR); (2) resolution of specified congressional committees; or (3) filing of a petition. Requires the ITC, in making such determination, to consider all relevant economic factors. Lists certain factors to be considered, including, with respect to serious injury, the inability of a significant number of firms to operate domestic production facilities at a reasonable profit and, with respect to threat of serious injury: (1) export targeting by a foreign government; (2) the existence of affirmative antidumping or countervailing duty determinations relating to a specified country; (3) the extent of the inability of the domestic industry to maintain its research and development expenditures; and (4) the extent to which articles are being diverted to the United States because of export or import restraints in a third country.

Sets forth the methods to be used by the ITC to determine the relevant domestic industry, including requiring the ITC to treat as part of an industry only its domestic production even if the industry also imports.

Defines "substantial cause" to mean a cause which is important and not less than any other cause.

Requires the ITC to: (1) investigate and report on efforts made by firms and workers in the industry to compete more effectively; and (2) investigate any factors which may be contributing to increase imports and, if the ITC has reason to believe that the increased imports are attributable to dumping, to notify the appropriate agency.

Declares that imports of competitive articles by domestic producers shall not be considered a factor indicating the absence of serious injury or threat of serious injury to such industry.

Requires the ITC to examine factors other than imports which may be a cause of injury or threat of injury to the domestic industry.

Requires the ITC to hold public hearings in import relief investigations.

Requires the ITC to make a determination within 150 days of the start of an import relief investigation. Prohibits an import relief investigation with respect to a domestic industry which during the preceding ten years was the subject of a previous investigation that resulted in: (1) tariff changes, import quotas, or orderly marketing agreements; or (2) the granting of an antitrust exemption to such domestic industry. Prohibits for one year any import relief investigation, except for good cause, of the same subject matter as a previous investigation that did not succeed in obtaining relief.

Requires the President to impose provisional import relief if the President finds that critical circumstances exist. Sets forth limitations on the duration of such relief. Declares that critical circumstances exist if a significant increase in imports over a short period of time has led to circumstances in which a delay in the imposition of relief would cause damage to the domestic industry that would be difficult to remedy under the regular import relief procedure.

Permits a petition which alleges import injury to a perishable product to be filed with the Secretary of Agriculture with a request that emergency relief be granted. Sets forth the procedure and timetable for granting such emergency relief.

Requires the USTR to establish a plan development group for the domestic industry producing articles like, or directly competitive with, the article that is the subject of the import relief investigation. Requires such group to be established whenever the ITC begins any import relief investigation. Requires each plan development group to consist of officials from various Federal agencies and individuals who are representative of the firms and of the workers in the domestic industry. Requires each plan development group to prepare for the industry concerned as assessment of current problems and a competitive enhancement strategy that sets forth objectives and steps that workers and firms could undertake to: (1) improve the industry's competitiveness; (2) assist the industry to adjust to new methods of competition; (3) lead to a domestic industry that can compete after the expiration of any import relief actions; and (4) adjust to import competition through the orderly transfer of resources to alternative uses. Sets forth information to be included in such assessment and strategy. Requires the report on such assessment and strategy to be submitted to the ITC and to the petitioner, if any, within 120 days after the ITC starts the import relief investigation.

Requires a petitioner for import relief to file an adjustment plan with the ITC within seven days (later if authorized by the ITC) of the ITC finding that import relief is warranted. Authorizes any trade association, firm, union, or group of workers that represents a significant portion of the affected domestic industry to file such an adjustment plan with the ITC if the import relief action was not initiated by petition. Requires the ITC to select one plan if more than one adjustment plan is submitted. Requires the adjustment plan to set forth: (1) the specific objectives of the import relief being requested (including the facilitation of orderly transfer of resources to alternative uses or other means of adjusting to competition); (2) a schedule for achieving such objectives; and (3) a description of actions which will be taken to achieve such objectives. Sets forth factors that may be addressed in such adjustment plan. Requires the USTR to present to the ITC and to the President the opinions of the heads of various Federal agencies on the viability of such adjustment plans. Requires the ITC, after an adjustment plan is submitted, to try to obtain, on a confidential basis, commitments from the members of the domestic industry regarding: (1) how such members intend to act upon the objectives and actions set forth in such plan; and (2) any other actions such members intend to take to foster the objectives of the adjustment plan. Requires the ITC to transmit such commitments to specified Federal officials, on a confidential basis. Provides for administration of the plan development groups. Exempts participation in plan development groups from the antitrust laws.

Requires the ITC to report to the President on the determination made by the ITC in an import relief investigation. Sets forth information to be included in such report. Requires the ITC, if it determines that import relief is warranted, to: (1) recommend actions which the President is authorized to take that (alone or in combination with other actions) create a reasonable expectation that the domestic industry can compete successfully with imports after the termination of the import relief; or (2) if the ITC finds no such reasonable expectation, recommend actions which the President is authorized to take that are necessary to provide for the orderly transfer of such industry's resources; (3) determine, for purposes of limiting import relief actions, the amount of any change in import restrictions which would prevent or remedy the serious injury or threat of serious injury caused by imports; and (4) include specified information in the report to the President, including a description of the short- and long-term effects of the implementation of the recommendation on other domestic industries and consumers. Limits the extent of the impact of, and the duration of, the import relief recommended by the ITC. Provides for public hearings by the ITC on its recommendations. Requires the ITC to: (1) consider specified factors in making such recommendations; (2) report to the President on import relief determinations within 180 days of the start of the investigation; and (3) furnish additional information to the President upon request.

Requires the President, if the ITC makes an affirmative unanimous determination that import relief is warranted, to take, within 30 days of receipt of the ITC report: (1) the actions recommended by the ITC; or (2) other actions which are at least substantially equivalent to the actions recommended by the ITC. Requires the President to submit a draft of a bill waiving the above requirement and containing the actions the President has decided to take if the President decides that: (1) actions other than those recommended by the ITC or their substantial equivalent should be taken; or (2) no action should be taken. Provides for expedited congressional consideration of such bill. Provides for congressional veto (by enactment of a joint resolution of disapproval) of the President's decision to take other action or no action.

Requires the President, if the ITC determines in a non-unanimous vote that import relief is warranted, to: (1) take import relief actions that create a reasonable expectation that the domestic industry can compete successfully with imports after the termination of such relief; or (2) take actions to provide for the orderly transfer of the resources of the domestic industry to other productive pursuits if the President does not find such a reasonable expectation. Declares that the President shall not be required to take any import relief action following a non-unanimous import relief determination by the ITC if the President determines that the import relief would be deterimental to national security or would cause serious injury to a domestic industry.

Sets forth the timetable for actions by the President in import relief actions. Sets forth the import relief actions the President is authorized to take, including providing trade adjustment assistance and antitrust exemptions, directing the initiation of antidumping and countervailing duty investigations, and entering into multilateral negotiations. Sets forth the criteria for granting antitrust exemptions and initiating antidumping actions. Limits the amount of increase of any duty provided as import relief. Limits the extent of any quantitative restriction on imports that is imposed as import relief. Postpones the implementation of import relief is the President publishes notice of intent to negotiate an orderly marketing agreement.

Provides for administration, review, and termination of import relief actions taken by the President. Provides for termination of import relief if the USTR finds that: (1) a domestic industry has failed to implement the recommended objectives and actions specified in the adjustment plan submitted to the ITC or the actions declared in the confidential information submitted in connection with such plan; and (2) such failure is not justified by changed circumstances and has adversely affected overall implementation of the objectives specified in the plan.

Limits the duration, with specified exceptions, of import relief actions to: (1) eight years; or (2) the period of time in which the domestic industry can compete successfully without import relief or the period of time in which an orderly transfer of resources can be completed. Provides for one five-year extension of import relief. Provides for reducing import relief every three years if the import relief lasts more than three years. Authorizes the President, if an orderly marketing agreement is negotiated, to suspend or terminate import relief provisions dealing with tariff modifications. Provides for the reduction or termination of import relief actions if: (1) no commitments were made to the ITC by any members of the domestic industry; and (2) the President makes a specified determination relating to achievement of the objectives of the import relief actions.

Requires the ITC to evaluate the effectiveness of the import relief actions after holding public hearings and to report to the President and to the Congress on such evaluation.

Subtitle B: Trade Competitiveness Assistance - Amends the Trade Act of 1974 to change the eligibility requirements for trade adjustment assistance for workers and firms. Refers to trade adjustment assistance as trade competitiveness assistance. Authorizes the certification of workers and firms as eligible for such assistance if there are increases in imports of articles that are competitive with articles to which the workers (through their firms) or the firms provide essential parts or services.

Requires a worker, in order to receive cash assistance, to: (1) be enrolled in a training program approved by the Secretary of Labor; (2) have completed such a program; or (3) have received a written certification from the Secretary or the relevant State or State agency that it is not feasible or appropriate to approve a training program for such worker. Prohibits payment of such assistance to such worker if the worker has failed to begin, or has ceased to participate in, such training program without justifiable cause until the worker begins or resumes participation in such training program.

Requires the Secretary to report annually to specified congressional committees on the number of workers who received certifications on the non-feasibility or inappropriateness of job training during the preceding year.

Increases the maximum trade readjustment allowance to an amount equal to 78 (currently 52) times the amount of one week's trade readjustment allowance. Provides that such increase shall apply to a worker who receives a certification of non-feasibility of job training.

Requires that, if the Secretary approves training for adversely affected workers, the training must be reasonably available. Provides that such training may be paid for directly or through a voucher system.

Limits the total amount of payments for training for each adversely affected worker to $4,000.

Requires each cooperating State agency (agency which provides trade adjustment assistance services) to advise adversely affected workers of training opportunities as soon as practicable. (Current law requires the agency to provided such advice within 60 days of receiving an application for training.)

Terminates on September 30, 1991, trade adjustment assistance programs for workers, technical assistance for firms, and the imposition of import fees to fund such programs.

Authorizes appropriations for trade adjustment assistance for workers and for firms through FY 1989. (Current law authorizes such appropriations through FY 1991.)

Establishes within the Treasury a Trade Competitiveness Assistance Trust Fund. Provides for its funding. Requires the amounts in the Trust Fund to be used to: (1) pay drawbacks and refunds of the duty imposed on all imports by this Act; and (2) carry out trade adjustment assistance for workers and firms to the extent and in such amounts as provided by appropriations Acts. Prohibits the use of the amounts in the Trust Fund to pay certain loans guaranteed under programs for trade adjustment assistance for firms.

Directs the President to undertake negotiations to change the General Agreement on Tariffs and Trade (GATT) to allow countries to impose a small uniform duty on all imports in order to use the revenue from such duty to fund trade adjustment assistance programs. Directs the President to report to the Congress six months after enactment of this Act on the progress of such negotiations.

Directs the President to report to the Congress as soon as the GATT allows the imposition of such a duty.

Imposes an additional duty on all imports into the United States, including those imports granted duty-free treatment, with specified exceptions.

Title III: Unfair International Trade Practices Investigations - Subtitle A: Mandatory Responses to Unfair Distortion of International Trade - Amends the Trade Act of 1974 to require the national trade estimate prepared annually by USTR to include a list of the trade barriers of each foreign country and an estimate of the value of additional U.S. goods and services and the value of additional foreign direct investment by U.S. persons that would have been exported to, or invested in, each foreign country if each of such trade barriers did not exist. Requires the USTR to consider the value of such U.S. exports and investments in determining the trade distorting impact of such trade barriers. Changes the date on which such annual report (to be known as the National Trade Estimate) is due to March 31.

Requires the President, if a country is identified in the 1986 National Trade Estimate as a country that has foreign trade barriers and the USTR determines that such country maintains a consistent pattern of barriers and market distorting practices, to initiate negotiations with such country to eliminate such barriers. Requires the USTR to determine, within 30 days of enactment of this Act, with respect to each such country whether such country maintains such a pattern of market barriers. Declares that Japan is such a country. Requires the President to report to the Congress by December 31, 1988, on the effects of any agreements reached by such negotiations.

Requires the USTR to initiate investigations with respect to those trade barriers identified in the National Trade Estimate which constitute significant trade barriers or distortions and which are likely to be: (1) unjustifiable; or (2) unjustifiable, unreasonable or discriminatory and restrictive of U.S. commerce and, if eliminated, are likely to result in the greatest expansion of U.S. exports. Exempts the USTR from initiating an investigation under (2) if such an investigation would be detrimental to other efforts to eliminate such barriers. Defines significant barriers to and distortions of trade.

Requires the USTR to determine within nine months of the start of an investigation, whether: (1) the United States is being denied any trade rights; or (2) the trade practices being investigated constitute unfair practices. Requires the USTR to provide an opportunity for the presentation of the views of interested parties and to obtain advice from appropriate advisory bodies either before or after making such determination depending upon whether expeditious action is required. Requires the USTR to make the determination more quickly (within six months) if export targeting is alleged. Requires the President to take the actions necessary to enforce U.S. trade rights and to eliminate unfair trade practices if such determination is affirmative. Sets forth the time frame in which such actions must be taken. Authorizes the President to postpone taking such actions if the President makes a specified certification to the Congress. Prohibits the President from granting more than two postponements.

Declares that the President is not required to take any actions if: (1) the contracting parties to the General Agreement on Tariffs and Trade (GATT) make a determination that conflicts with the USTR's determination of unfair trade practices; (2) an agreement is entered into between the United States and the foreign country involved and the affected domestic industry or the petitioner agrees that such agreement adequately offsets the unfair trade practices and enforces U.S. trade rights; or (3) the investigation of such trade practices was not initiated by a finding in the National Trade Estate of unjustifiable trade barriers and the President submits a specified certification to the Congress.

Terminates any actions taken in response to such investigations after seven years if there is no request for continuation of the action. Provides for formal review, upon request, of the necessity of the continuation of the action request. Requires the USTR to report to the Congress on such review.

Authorizes the President to modify or terminate an action taken pursuant to such an investigation if: (1) the contracting parties to the GATT have determined, or a GATT panel of experts has reported, that the action violates U.S. international obligations or that the trade practice to which the action responds is not a violation of, or inconsistent with, a trade agreement or does not impair U.S. benefits under a trade agreement; (2) an offsetting trade agreement has been reached; or (3) the burden on the U.S. economy of the denial of trade rights or of the unfair trade practices has increased.

Includes foreign trade practices that threaten to burden or restrict U.S. commerce among the trade practices to which the USTR must respond.

Defines "burden on U.S. commerce" to include: (1) foreign trade practices which have an adverse effect on trade between the United States and another foreign country; (2) the subsidization of exports that results in the displacement of U.S. exports to another foreign country; (3) the imposition of import restrictions or export performance requirements that result in the diversion of the exports of another foreign country to U.S. markets; and (4) the enforcement of trade restraining agreements that result in the diversion of the exports of another foreign country to U.S. markets.

Requires foreign instrumentalities and territories to be treated as foreign countries.

Authorizes the President, in reaction to unfair foreign trade practices, to: (1) enter into agreements that offset or eliminate any burden on U.S. commerce resulting from such practices; or (2) withdraw or refrain from proclaiming benefits under the Generalized System of Preferences for the country involved.

Includes within the definition of unreasonable trade practices: (1) export targeting; or (2) a requirement that intellectual property be licensed to the foreign country concerned or to a firm in such country or that technical information be submitted to such country as a condition of importation into such country.

Defines "export targeting" to include any government plan consisting of a combination of coordinated actions that are bestowed on a specific enterprise, industry, or group the effect of which is to assist the enterprise, industry, or group to become more competitive in exports. Sets forth actions included within the definition of export targeting.

Adds to the definition of service sector access authorization reference to a foreign supplier of goods related to a service.

Includes within the definition of "unjustifiable trade practices" trade practices: (1) which enable a state trading enterprise to compete in international trade or make purchases or sales in international trade without depending on commercial considerations; (2) through which a foreign country assists a state trading enterprise in such competition, purchases, or sales; or (3) which fail to afford U.S. firms adequate opportunity, in accordance with customary business practice, to compete for participation in purchases from, or sales to, state trading enterprises.

Defines "denial of benefits" under a trade agreement to include foreign trade practices that: (1) nullify, impair, or impede attainment of the objectives of such agreement; (2) constitute an unfair trade concession requirement for any product or service within the purview of such agreement. Defines "unfair trade concessions requirement."

Authorizes the President, in order to meet U.S. international obligations, to take actions to compensate foreign governments for actions taken with respect to unfair foreign trade practices.

Subtitle B: Improvement in the Enforcement of Antidumping and Countervailing Duties - Amends the Tariff Act of 1930 to require the administering authority, if there is an affirmative finding that countervailing duties are warranted and the petition alleges that a subsidy is inconsistent with the Agreement on Subsidies and Countervailing Measures or if a countervailing duty investigation is commenced and the administering authority has reason to believe that a subsidy is inconsistent with the Agreement, to: (1) notify the Customs Service of such determination and direct customs officers to collect information on imports of the type of merchandise that is the subject of the investigation; (2) order the suspension of liquidation of such imports that are entered, or withdrawn from warehouse, on or after the publication of the notice of such determination; and (3) begin monitoring the volume of such imports to determine whether there has been a surge of such imports since the countervailing duty investigation petition was filed or the investigation commenced. Prohibits a determination of the existence of a surge of imports until 60 days after the petition was filed or the investigation commenced. Terminates the suspension of liquidation if the preliminary determination of the administering authority is that no subsidy is being provided.

Requires the administering authority to order the posting of security for unliquidated entries of affected imports if the administering authority makes a preliminary determination that an inconsistent subsidy exists and there has been a surge of such imports. Terminates any suspension of liquidation and requires the release of any security posted with respect to such imports if a countervailing duty investigation is terminated. Provides that the final determination of whether there is a subsidy which is inconsistent with the Agreement and whether there was a surge of imports may be affirmative even if the preliminary determination was negative. Deletes the requirement that the ITC also determine whether there is material injury that will be difficult to repair and whether the material injury resulted from the surge of imports.

Terminates the suspension of liquidation of such imports and releases any security posted with respect to such imports if the final determination of the administering authority is that there is no inconsistent subsidy or surge of imports or the final determination of the ITC is that there is no material injury but that there is a threat of material injury or that the establishment of an industry in the United States is materially retarded.

Deletes the provision that prohibits any determination as to the presence of critical circumstances with respect to non-duty-free imports.

Requires the administering authority, if there is an affirmative finding of the need to impose an antidumping duty or if an antidumping duty investigation is initiated by the administering authority, to: (1) notify the Customs Service of such determination and direct customs officers to collect information on imports of the type of merchandise that is the subject of the investigation; and (2) begin monitoring the volume of such imports to determine whether there has been a surge of such imports since the antidumping petition was filed or the investigation commenced. Prohibits a determination of the existence of a surge of imports until 60 days after the petition was filed or the investigation commenced. Suspends the liquidation of duties on such imports starting 70 days after the antidumping petition is filed or the investigation is commenced. Terminates such suspension of duties if the preliminary determination is that the imports are being sold or are likely to be sold at less than fair market value (are being dumped).

Requires the administering authority to order the posting of security for unliquidated entries of affected imports if the administering authority makes a preliminary determination that goods are being dumped.

Terminates the suspension of liquidation and requires the release of any security posted with respect to such imports if an antidumping duty investigation is terminated.

Provides that the final determination of dumping may be affirmative even if the preliminary determination was negative. Deletes the provision that required the final determination of the ITC to include a finding as to whether a retroactive duty should be imposed on dumped imports.

Requires the administering authority, if it determines that merchandise is imported into the U.S. customs territory by, or for, a manufacturer, producer, seller, or exporter for the purpose of absorbing antidumping duties on behalf of a U.S. purchaser, to declare the importation a sham transaction and direct customs officers to treat the U.S. purchaser as the importer solely liable for such duties. Sets forth factors to consider in determining whether a transaction is a sham transaction.

Prohibits the ITC from determining that there is no material injury or threat of material injury to U.S. producers of fungible products by reason of imports of such products solely on the basis of evidence that: (1) sales of such imports were not the first sales or offers at a reduced price in the relevant market; (2) similar price declines occurred in comparable markets; (3) U.S. producers also import such products; or (4) U.S. producers of the products are profitable.

Requires the administering authority to investigate whether diversionary input dumping is occurring whenever: (1) the administering authority has reasonable grounds to suspect that such dumping is occurring; (2) a specified type of material or component is routinely used as a major material or component in manufacturing or producing the merchandise under investigation; and (3) generally accepted trade statistics indicate that, after the issuance of an antidumping duty order or the entry into force of an international agreement relating to the importation into the United States of such material or component, the quantity or market share of shipments to the United States of such material or component has decreased or the rate of increase of such shipments has decreased and shipments to the United States of the merchandise under investigation have increased. Sets forth the timetable for preliminary and final determinations by the administering authority as to the existence of diversionary input dumping. Provides that the foreign market value of merchandise that constitutes diversionary input dumping shall be the constructed value of the merchandise. Provides for increasing the cost of the material or component that is found to be involved in diversionary input dumping.

Requires the administering authority, if the merchandise involved in a dumping investigation is exported from a nonmarket economy country and it is not possible to accurately determine the foreign market value of such merchandise from the information submitted by such country, to determine the foreign market value on the basis of the trade-weighted average price at which comparable merchandise is sold by a specified eligible market economy country. Provides for determining such foreign market value when there is no eligible market economy producer. Provides a special rule for imports of fungible products. Defines "nonmarket economy country" and "eligible market economy country." Authorizes the administering authority to suspend an antidumping investigation involving a nonmarket economy country if specified conditions are met. Requires the Commissioner of Customs and the ITC to provide the administering authority, upon request, with a copy of all public and proprietary information that they possess that is relevant to dumping proceedings involving merchandise from such countries.

Authorizes a domestic producer of an article that is like a component part or a downstream product to petition the administering authority to designate a downstream product for monitoring by the ITC. Sets forth information to be included in the petition. Requires the administering authority to determine whether there is a reasonable likelihood that imports of the downstream product will increase as an indirect result of any diversion with respect to component parts. Sets forth factors the administering authority may take into account in making such determination. Requires the ITC to make quarterly reports to the administering authority regarding the ITC monitoring of a downstream product.

Requires the administering authority to review the reports of the ITC and: (1) consider such information in determining whether to initiate an antidumping or countervailing duty investigation regarding a downstream product; and (2) request the ITC to cease its monitoring if the information indicates that imports are not increasing and there is no reasonable likelihood of diversion with respect to component parts.

Title IV: Intellectual Property Rights - Subtitle A: Intellectual Property Remedies - Makes unlawful (and therefore subject to remedies for unfair trade practices) the importation or sale within the United States, if a related industry exists in the United States or is being established, of articles that: (1) infringe a U.S. patent or copyright or are produced by a process covered by a U.S. patent; or (2) infringe a trademark. Makes it unlawful to import a semiconductor chip product in a manner that constitutes infringement of a registered mask work. Sets forth the manner of determining whether a U.S. industry exists.

Authorizes the ITC to terminate an investigation into unfair practices in the import trade by issuing a consent order or on the basis of a settlement agreement.

Authorizes a complainant to petition the ITC to issue an order for the exclusion of certain articles during an investigation into unfair practices in the import trade. Sets forth the timetable for action by the ITC. Authorizes the ITC to grant preliminary relief with respect to violations involving intellectual property. Provides that the ITC may issue cease and desist orders in addition to or in lieu of exclusionary orders. Increases the penalty for violations of such orders.

Requires the ITC to presume the facts alleged in the complaint are true and to issue, upon request, an exclusion from entry or a cease and desist order or both under certain circumstances. Authorizes the ITC to prescribe sanctions for abuse of discovery and abuse of process.

Authorizes the ITC to order the forfeiture of an article imported in violation of the import trade unfair practices section if: (1) the importer had previously attempted to import the article; (2) the article was previously denied entry into the United States; and (3) upon such previous denial of entry the Secretary of the Treasury had provided the importer with a specified written notice.

Provides that a person who has been previously found to be in violation of the provisions relating to unfair import practices may petition the ITC for a finding that such person is no longer in violation of such provisions or for a modification or rescission of an exclusion.

Excludes intellectual property imported by or for the United States from certain exclusion orders.

Provides for the protection of the confidentiality of information submitted to the ITC or exchanged among the parties in cases involving unfair import practices.

Subtitle B: Access to Technology - Requires the USTR in conjunction with the National Science Foundation to: (1) monitor the transfer of technology between the United States and foreign countries; and (2) report annually to specified congressional committees on such transfers.

Requires the Secretary of Commerce (Secretary) to designate a Foreign Commercial Service Officer in a foreign country to monitor and report on the status of the intellectual property system in such country.

Amends the Foreign Assistance Act of 1961 to authorize the President to furnish assistance for programs to aid less developed countries in developing and implementing adequate intellectual property laws and in developing their own indigenous technology. Requires the Secretary to identify the technical assistance needs of such countries.

Requires the Secretary to establish the United States Intellectual Property Training Institute to train individuals of developing countries in both management and technical skills regarding the protection of intellectual property. Provides for financing the Institute.

Title V: National Security - Amends the Trade Expansion Act of 1962 to grant the Secretary of Commerce (the Secretary) the responsibility for investigating, upon request, the effects of imports on national security. Requires the Secretary to report to the President on such investigation within six months of receiving the request that starts the investigation.

Requires the Secretary to notify the Secretary of Defense concerning any such investigation. Requires the Secretary of Defense to conduct a separate defense needs assessment of the article affected by such imports. Requires the Secretary of Defense to report to the Secretary on such assessment within three months. Requires the Secretary's report to the President on such investigation to include a statement by the Secretary of Defense concurring or disagreeing with the Secretary's findings and explaining such concurrence or disagreement. Requires any portion of such report to be published if it is not: (1) classified as being clearly detrimental to the national security; and (2) proprietary information.

Requires the President to : (1) decide whether or not to take action based on such report within 90 days of receiving it; and (2) explain the decision.

Title VI: Formulation of United States Trade Policy - Requires the head of each Federal agency, before taking any major action that may affect international trade, to study, and publish a report on, the potential impact such action will have on U.S. international trade and on the international competitiveness of U.S. firms. Exempts emergency actions and certain other actions from such reporting requirement. Requires the head of each Federal agency to include such report with any proposed legislation made to the Congress.

Amends the Trade Expansion Act of 1962 to establish in the Executive Office of the President the National Trade Council, which shall: (1) advise the President on the coordination of national and international policies relating to trade; (2) assess U.S. international trade policies and objectives; (3) consider policies on matters of common interest to Federal agencies concerned with international trade; (4) consider the relationship between the U.S. standard of living and U.S. trade policies; and (5) evaluate the effects of U.S. trade policies and objectives on the national security.

Provides for consultations between members of the Council and representatives of the private sector. Requires the Council to report to the President as appropriate or upon request of the President.

Terminates the Trade Policy Committee.

Establishes the National Trade Data Committee to: (1) establish and maintain a National Trade Data Bank; (2) analyze information in the National Trade Data Bank; (3) disseminate such information to export businesses in a timely manner; and (4) coordinate the gathering and dissemination of commercial information relating to international trade by the Federal Government. Sets forth information to be included in the National Trade Data Bank.

Requires each Federal agency to cooperate in providing information for assimilation into the National Trade Data Bank.

Requires the Committee to report annually to the Congress: (1) assessing the current quality, comprehensiveness, and accessibility of trade data; (2) describing actions that have been taken and that are planned to be taken pursuant to this Act; (3) recommending actions which would ensure that U.S. citizens and firms obtain access to foreign data banks that is similar to the access provided foreign citizens and firms to the National Trade Data Bank; and (4) recommending other legislative actions.

Exempts from the Paperwork Reduction Act of 1980 certain actions taken to carry out this Act.

Title VII: Agriculture - Declares that it is U.S. policy to increase agricultural exports, to recapture the U.S. market share in agricultural trade, and to support programs to make U.S. exports more competitive abroad. Sets forth other policy objectives relating to agriculture.

Authorizes the Secretary of Agriculture to make available certain commodities to cooperator organizations which shall use the commodities to establish demonstration projects designed to expand markets for U.S. agricultural commodities and products.

Requires that there be at least 850 full-time employees during each of FY 1987, 1988, and 1989 in the Foreign Agricultural Service of the Department of Agriculture. Expresses the sense of the Congress that such a number of employees should make it possible for the Service to devote greater resources to developing markets for U.S. agricultural commodities and products. Requires an agricultural attache who is reassigned from abroad to counsel agricultural producers on means of increasing exports and agricultural market development and promotional activities. Requires at least 60 percent of the personnel resource time of agricultural attaches who are stationed abroad to be devoted to market development and promotional activities for U.S. agricultural commodities.

Authorizes the Secretary to contract with an individual for services to be performed outside the United States as necessary in order to carry out market development activities for U.S. agricultural commodites.

Establishes within the Service an Office of International Market Development and Export Promotion to coordinate all market development, promotional, export enhancement, export credit, and targeted export assistance programs. Requires the Office to report annually to specified congressional committees on the market development programs.

Establishes within the Office a unit to monitor the quality of agricultural exports. Requires the unit to: (1) act as liaison with the Federal Grain Inspection Service, private U.S. exporters, foreign governments, and U.S. agricultural attaches overseas; (2) receive and respond to complaints about the quality of U.S. agricultural exports; and (3) identify problems in foreign markets concerning the quality of U.S. commodities and ensure that notice of such problems is provided to the relevant entities for quick response and follow-up.

Establishes within the Office a unit to evaluate the overall effectiveness of the market development and promotional programs of the Service. Requires the unit to report annually to specified congressional committees on such programs.

Earmarks at least 50 percent of the FY 1987 increase in funding of the Service to be used to create new markets for U.S. agricultural commodities in developing markets.

Authorizes appropriations for FY 1987 for trade shows and exhibitions conducted by the Service. Sets forth the ways the increase in funding for trade shows shall be used.

Authorizes appropriations for FY 1987 for program management and support activities of the Service and for its market promotion and trade development activities. Requires some of the increased funding to be used to provide adequate staff for: (1) the development of markets for high value-added products; and (2) the improvement of the quality of agricultural exports.

Establishes within the Department of Agriculture an Export Market Development Advisory Committee to: (1) review all U.S. agricultural market development and export enhancement programs; and (2) make recommendations for the improvement of such programs.