International Narcotics Control Act of 1996

International Narcotics Control Act of 1996 - Amends the Foreign Assistance Act of 1961 (the Act) to require that the President's annual international narcotics control strategy report to the Congress (strategy report) include information from the United States Trade Representative on the bilateral trade relationship between the United States and each major illicit drug producing and drug-transit country.

Directs the President to transmit to specified congressional committees a mid-year report on the activities of each country: (1) not certified as having cooperated fully with the United States, or taken adequate steps on its own, to achieve full compliance with the goals and objectives established by the United Nations Convention Against Illicit Traffic in Narcotic Drugs and Psychotropic Substances (certification); or (2) granted a national interest waiver (waiver).

Requires the President, in making certification determinations, to consider factors such as the extent to which the country: (1) has adopted and is implementing an effective strategic plan to reduce or eliminate illicit cultivation, distribution, sale, transport, and financing of narcotic and psychotropic drugs, precursor chemicals, and other controlled substances; and (2) is taking steps to prevent the diversion of U.S. assistance or equipment.

Directs the Department of State or other appropriate negotiating agency, for each country identified as a major illicit drug producing or drug-transit country or which is a major source of precursor chemicals used in the production of illicit narcotics, to notify specified congressional committees within ten calendar days of reaching an agreement on the extradition of an individual, subject to specified requirements. Requires notification once such interests are no longer threatened.

(Sec. 3) Amends the Narcotics Control Trade Act (NCTA) to direct the Secretary, by April 1 of each year, to recommend to the President the imposition of one or more of specified required trade sanctions on a country: (1) that is a major illicit drug producing country or a major drug-transit country; and (2) with respect to which, for three consecutive years, the President does not make a certification or grants a waiver or the Congress enacts a joint resolution disapproving such a certification or waiver by the President.

Includes among the list of trade sanctions: (1) denial of nondiscriminatory or preferential tariff treatment to any or all of the five major products of the country; and (2) denial of trade benefits under any agreement between that country and the United States establishing a free trade area.

Requires the President to: (1) report to the Congress which sanctions the President intends to implement (and sets forth provisions regarding the duration of sanctions and conditions for recertification); and (2) notify specified congressional committees any time an action is taken, modified, or suspended under trade sanction provisions with respect to a major illicit drug producing or drug-transit country.

(Sec. 4) Requires the President to include in the strategy report, for specified categories of countries, information regarding: (1) any actions the United States has taken with regard to that country under provisions prohibiting assistance to drug traffickers (trafficker assistance prohibition) and how the country has been affected by the President's implementation of such prohibition; (2) how the country has been economically affected by the production and trafficking in narcotic and psychotropic drugs and controlled substances; and (3) the size of the illegal drug economy.

Requires the strategy report to include information regarding: (1) the steps the President is taking to implement the trafficker assistance prohibition; and (2) the use of any equipment made available to a foreign country by the United States. Treats any country identified as a major money laundering country in such report as a major drug-transit or illicit drug producing country.

(Sec. 5) Requires the President, if proceedings are initiated by a country against the United States in the World Trade Organization or under the North American Free Trade Agreement regarding actions taken under NCTA, to invoke all applicable defenses in such proceedings, including exceptions for measures necessary to protect national security.

(Sec. 6) Makes this Act's trade sanctions provisions applicable to countries regarding which for three consecutive years beginning on or after January 1, 1995: (1) the President does not make a certification or grants a waiver; or (2) the Congress enacts a joint resolution disapproving the President's action.