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TEXT OF SECTION 2202 OF THE OMNIBUS TRADE AND

COMPETITIVENESS ACT OF 1988

“The Secretary of State shall, not later than January 31 of each year, prepare and transmit to the Committee on Foreign Affairs and the Committee on Ways and Means of the House of Representatives, to the Committee on Foreign Relations and the Committee on Finance of the Senate, and to other appropriate committees of the Congress, a detailed report regarding the economic policy and trade practices of each country with which the United States has an economic or trade relationship. The Secretary may direct the appropriate officers of the Department of State who are serving overseas, in consultation with appropriate officers or employees of other departments and agencies of the United States, including the Department of Agriculture and the Department of Commerce, to coordinate the preparation of such information in a country as is necessary to prepare the report under this section. The report shall identify and describe, with respect to each country:

1. The macroeconomic policies of the country and their impact on the overall growth in demand for United States exports;

2. The impact of macroeconomic and other policies on the exchange rate of the country and the resulting impact on price competitiveness of United States exports;

3. Any change in structural policies (including tax incentives, regulation governing financial institutions, production standards, and patterns of industrial ownership) that may affect the country's growth rate and its demand for United States exports;

4. The management of the country's external debt and its implications for trade with the United States;

5. Acts, policies, and practices that constitute significant trade barriers to United States exports or foreign direct investment in that country by United States persons, as identified under section 181(a)(1) of the Trade Act of 1974 (19 U.S.C. 2241(a)(1));

6. Acts, policies, and practices that provide direct or indirect government support for exports from that country, including exports by small businesses;

7. The extent to which the country's laws and enforcement of those laws afford adequate protection to United States intellectual property, including patents, trademarks, copyrights, and mask works; and

8. The country's laws, enforcement of those laws, and practices with respect to internationally recognized worker rights (as defined in section 502(a)(4) of the Trade Act of 1974), the conditions of worker rights in any sector which produces goods in which United States capital is invested, and the extent of such investment.”

NOTES ON PREPARATION OF THE REPORTS

Subsections a. through e. of the Worker Rights section (section 8) are preliminary abridged versions of section 6 in the Country Reports on Human Rights Practices for 1994, submitted to the Committees on Foreign Affairs of the House of Representatives and on Foreign Relations of the U.S. Senate in January, 1995. For a comprehensive discussion of worker rights in each country please refer to that report.

Subsection f. of the Worker Rights section highlights conditions of worker rights in goods-producing sectors where U.S. capital is invested. A table cites the extent of such investment by sector where information isavailable. The Bureau of Economic Analysis of the U.S. Department ofCommerce has supplied information on the U.S. direct investment position at the end of 1993 for all countries for which foreign direct investment has been reported to it. Readers should note that "U.S. Direct Position Abroad" is defined as "the net book value of U.S. parent companies' equity in, and net outstanding loans to, their foreign affiliates” (foreign business enterprises owned 10 percent or more by U.S. persons or companies). Where a figure is negative, the U.S. parent owes money to the affiliate. The table does not necessarily indicate total assets held in each country. In some instances, the narrative refers to investments for which figures may not appear in the table.

SOME FREQUENTLY-USED ACRONYMS

ADB—Asian Development Bank
BDV-Brussels Definition of Value
BIS-Bank for International Settlements
CACM-Central American Common Market
CARICOM-Caribbean Common Market
CAP-Common Agricultural Policy
CCC—Commodity Credit Corporation (Department of Agriculture)
COMECOM-Council for Mutual Economic Assistance
EBRD-European Bank for Reconstruction and Development
EFTA-European Free Trade Association
EMS-European Monetary System
ERM-Exchange Rate Mechanism
ESAF-Enhanced Structural Adjustment Facility
EU-European Union
EXIMBANK-U.S. Export-Import Bank
FOREX-Foreign Exchange
FSU-Former Soviet Union
GATT-General Agreement on Tariffs and Trade
GDP-Gross Domestic Product
GNP-Gross National Product
GSP-Generalized System of Preferences
IBRD-International Bank for Reconstruction and Development

(World Bank)
ILO_International Labor Organization (of the U.N.)
IMF-International Monetary Fund
DB-Inter-American Development Bank
IPR—Intellectual Property Rights
LIBOR-London Interbank Offer Rate
MFN_Most Favoured Nation
NNI-Net National Income
OECD-Organization for Economic Cooperation and Development
OPIC-U.S. Overseas Private Investment Corporation
PTT-Posts, Telegraph and Telephone
SAP-Structural Adjustment Program (of the IMF/World Bank)
SDR Special Drawing Rights (of the IMF)
STF_Structural Transformation Facility
UR-Uruguay Round of trade negotiations in the GATT
USD-U.S. dollar
VAT_Value-added tax
WIPO_World Intellectual Property Organization
WTO_World Trade Organization

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