International Trade: Combating Unfair Foreign Trade Practices
NSIAD-87-100
Published: Mar 17, 1987. Publicly Released: Apr 22, 1987.
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Highlights
Pursuant to a congressional request, GAO provided information on the dispute settlement process under section 301 of the Trade Act of 1974, focusing on: (1) success in remedying U.S. trade complaints; and (2) experiences of section 301 petitioners. Under the act, the Office of the U.S. Trade Representative (OUSTR) may begin negotiations on its own or in response to a complaint; if the negotiations are unsuccessful, the President may invoke dispute settlement procedures under international trade agreements, such as the General Agreement on Tariffs and Trade (GATT), or take retaliatory action against an unfair foreign trade practice.
Recommendations
Matter for Congressional Consideration
| Matter | Status | Comments |
|---|---|---|
| Congress should amend section 301 of the Trade Act of 1974 to require that OUSTR set a date for each section 301 case involving GATT, at which time the United States would be expected to withdraw from the GATT dispute settlement process if it were not completed. The statute should give OUSTR some flexibility in setting the required limit on participation, based on the complexity and sensitivity of each case. | The Omnibus Trade and Competitiveness Act of 1988, enacted August 23, 1988, contains provisions which substantively attain the objective of this recommendation. |
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Topics
Administrative remediesDispute settlementsForeign trade agreementsForeign trade policiesInternational economic relationsInternational trade regulationRestrictive trade practicesTariffsInternational tradeGrain and grain products