(1) If the President is unable, before the close of the negotiating period, to enter into an agreement under subtitle A with any priority foreign country identified under section 3103 of this title which achieves the general negotiating objectives described in section 3104(b) of this title as defined by the specific objectives established by the President for that country, the President shall take whatever actions authorized under subsection (b) of this section that are appropriate and most likely to achieve such general negotiating objectives.
(2) In taking actions under paragraph (1), the President shall first take those actions which most directly affect trade in telecommunications products and services with the priority foreign country referred to in paragraph (1), unless the President determines that actions against other economic sectors would be more effective in achieving the general negotiating objectives referred to in paragraph (1).
(1) The President is authorized to take any of the following actions under subsection (a) of this section with respect to any priority foreign country:
(A) termination, withdrawal, or suspension of any portion of any trade agreement entered into with such country under—
(i) the Trade Act of 1974 [19 U.S.C. 2101 et seq.],
(ii) section 1821 of this title, or
(iii) section 1351 of this title,
with respect to any duty or import restriction imposed by the United States on any telecommunications product;
(B) actions described in section 301 of the Trade Act of 1974 [19 U.S.C. 2411];
(C) prohibition of purchases by the Federal Government of telecommunications products of such country;
(D) increases in domestic preferences under chapter 83 of title 41 for purchases by the Federal Government of telecommunications products of such country;
(E) suspension of any waiver of domestic preferences under chapter 83 of title 41 which may have been extended to such country pursuant to the Trade Agreements Act of 1979 with respect to telecommunications products or any other products;
(F) issuance of orders to appropriate officers and employees of the Federal Government to deny Federal funds or Federal credits for purchases of the telecommunications products of such country; and
(G) suspension, in whole or in part, of benefits accorded articles of such country under title V of the Trade Act of 1974 (19 U.S.C. 2461, et seq.).
(2) Notwithstanding section 125 of the Trade Act of 1974 [19 U.S.C. 2135] and any other provision of law, if any portion of a trade agreement described in paragraph (1)(A) is terminated, withdrawn, or suspended under paragraph (1) with respect to any duty imposed by the United States on the products of a foreign country, the rate of such duty that shall apply to such products entered, or withdrawn from warehouse for consumption, after the date on which such termination, withdrawal, or suspension takes effect shall be a rate determined by the President.
(1) For purposes of this section, the term "negotiating period" means—
(A) with respect to a priority foreign country identified in the investigation conducted under section 3103(a) of this title, the 18-month period beginning on August 23, 1988, and
(B) with respect to any foreign country identified as a priority foreign country after the conclusion of such investigation, the 1-year period beginning on the date on which such identification is made.
(2)(A) The negotiating period with respect to a priority foreign country may be extended for not more than two 1-year periods.
(B) By no later than the date that is 15 days after the date on which the President extends the negotiating period with respect to any priority foreign country, the President shall submit to appropriate committees of the Congress a report on the status of negotiations with such country that includes—
(i) a finding by the President that substantial progress is being made in negotiations with such country, and
(ii) a statement detailing the reasons why an extension of such negotiating period is necessary.
The President may modify or terminate any action taken under subsection (a) of this section if, after taking into consideration the factors described in section 3103(b) of this title, the President determines that changed circumstances warrant such modification or termination.
The President shall promptly inform the appropriate committees of the Congress of any action taken under subsection (a) of this section or of the modification or termination of any such action under subsection (d) of this section.
(Pub. L. 100–418, title I, §1376, Aug. 23, 1988, 102 Stat. 1220.)
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