Mandatory action
(1)#
If the United States Trade Representative determines under section 2414(a)(1) of this title that—
(A) the rights of the United States under any trade agreement are being denied; or
(B) an act, policy, or practice of a foreign country— (i) violates, or is inconsistent with, the provisions of, or otherwise denies benefits to the United States under, any trade agreement, or (ii) is unjustifiable and burdens or restricts United States commerce;
the Trade Representative shall take action authorized in subsection (c), subject to the specific direction, if any, of the President regarding any such action, and shall take all other appropriate and feasible action within the power of the President that the President may direct the Trade Representative to take under this subsection, to enforce such rights or to obtain the elimination of such act, policy, or practice. Actions may be taken that are within the power of the President with respect to trade in any goods or services, or with respect to any other area of pertinent relations with the foreign country.
(1)(A)#
the rights of the United States under any trade agreement are being denied; or
(1)(B)#
an act, policy, or practice of a foreign country—
(i) violates, or is inconsistent with, the provisions of, or otherwise denies benefits to the United States under, any trade agreement, or
(ii) is unjustifiable and burdens or restricts United States commerce;
(2)#
The Trade Representative is not required to take action under paragraph (1) in any case in which—
(A) the Dispute Settlement Body (as defined in section 3531(5) of this title ) has adopted a report, or a ruling issued under the formal dispute settlement proceeding provided under any other trade agreement finds, that— (i) the rights of the United States under a trade agreement are not being denied, or (ii) the act, policy, or practice— (I) is not a violation of, or inconsistent with, the rights of the United States, or (II) does not deny, nullify, or impair benefits to the United States under any trade agreement; or
(B) the Trade Representative finds that— (i) the foreign country is taking satisfactory measures to grant the rights of the United States under a trade agreement, (ii) the foreign country has— (I) agreed to eliminate or phase out the act, policy, or practice, or (II) agreed to an imminent solution to the burden or restriction on United States commerce that is satisfactory to the Trade Representative, (iii) it is impossible for the foreign country to achieve the results described in clause (i) or (ii), as appropriate, but the foreign country agrees to provide to the United States compensatory trade benefits that are satisfactory to the Trade Representative, (iv) in extraordinary cases, where the taking of action under this subsection would have an adverse impact on the United States economy substantially out of proportion to the benefits of such action, taking into account the impact of not taking such action on the credibility of the provisions of this subchapter, or (v) the taking of action under this subsection would cause serious harm to the national security of the United States.
(2)(A)#
the Dispute Settlement Body (as defined in section 3531(5) of this title ) has adopted a report, or a ruling issued under the formal dispute settlement proceeding provided under any other trade agreement finds, that—
(i) the rights of the United States under a trade agreement are not being denied, or
(ii) the act, policy, or practice— (I) is not a violation of, or inconsistent with, the rights of the United States, or (II) does not deny, nullify, or impair benefits to the United States under any trade agreement; or
(3)#
Any action taken under paragraph (1) to eliminate an act, policy, or practice shall be devised so as to affect goods or services of the foreign country in an amount that is equivalent in value to the burden or restriction being imposed by that country on United States commerce.