View all text of Subchapter V [§ 2461 - § 2467]
§ 2462. Designation of beneficiary developing countries
(a) Authority to designate countries
(1) Beneficiary developing countries
(2) Least-developed beneficiary developing countries
(b) Countries ineligible for designation
(1) Specific countriesThe following countries may not be designated as beneficiary developing countries for purposes of this subchapter:
(A) Australia.
(B) Canada.
(C) European Union member states.
(D) Iceland.
(E) Japan.
(F) Monaco.
(G) New Zealand.
(H) Norway.
(I) Switzerland.
(2) Other bases for ineligibilityThe President shall not designate any country a beneficiary developing country under this subchapter if any of the following applies:
(A) Such country is a Communist country, unless—
(i) the products of such country receive nondiscriminatory treatment,
(ii) such country is a WTO Member (as such term is defined in section 3501(10) of this title) and a member of the International Monetary Fund, and
(iii) such country is not dominated or controlled by international communism.
(B) Such country is a party to an arrangement of countries and participates in any action pursuant to such arrangement, the effect of which is—
(i) to withhold supplies of vital commodity resources from international trade or to raise the price of such commodities to an unreasonable level, and
(ii) to cause serious disruption of the world economy.
(C) Such country affords preferential treatment to the products of a developed country, other than the United States, which has, or is likely to have, a significant adverse effect on United States commerce.
(D)
(i) Such country—(I) has nationalized, expropriated, or otherwise seized ownership or control of property, including patents, trademarks, or copyrights, owned by a United States citizen or by a corporation, partnership, or association which is 50 percent or more beneficially owned by United States citizens,(II) has taken steps to repudiate or nullify an existing contract or agreement with a United States citizen or a corporation, partnership, or association which is 50 percent or more beneficially owned by United States citizens, the effect of which is to nationalize, expropriate, or otherwise seize ownership or control of property, including patents, trademarks, or copyrights, so owned, or(III) has imposed or enforced taxes or other exactions, restrictive maintenance or operational conditions, or other measures with respect to property, including patents, trademarks, or copyrights, so owned, the effect of which is to nationalize, expropriate, or otherwise seize ownership or control of such property,
unless clause (ii) applies.
(ii) This clause applies if the President determines that—(I) prompt, adequate, and effective compensation has been or is being made to the citizen, corporation, partnership, or association referred to in clause (i),(II) good faith negotiations to provide prompt, adequate, and effective compensation under the applicable provisions of international law are in progress, or the country described in clause (i) is otherwise taking steps to discharge its obligations under international law with respect to such citizen, corporation, partnership, or association, or(III) a dispute involving such citizen, corporation, partnership, or association over compensation for such a seizure has been submitted to arbitration under the provisions of the Convention for the Settlement of Investment Disputes, or in another mutually agreed upon forum,
and the President promptly furnishes a copy of such determination to the Senate and House of Representatives.
(E) Such country fails to act in good faith in recognizing as binding or in enforcing arbitral awards in favor of United States citizens or a corporation, partnership, or association which is 50 percent or more beneficially owned by United States citizens, which have been made by arbitrators appointed for each case or by permanent arbitral bodies to which the parties involved have submitted their dispute.
(F) Such country aids or abets, by granting sanctuary from prosecution to, any individual or group which has committed an act of international terrorism or the Secretary of State makes a determination with respect to such country under section 4605(j)(1)(A) 1
1 See References in Text note below.
of title 50 or such country has not taken steps to support the efforts of the United States to combat terrorism.(G) Such country has not taken or is not taking steps to afford internationally recognized worker rights to workers in the country (including any designated zone in that country).
(H) Such country has not implemented its commitments to eliminate the worst forms of child labor.
Subparagraphs (D), (E), (F), (G), and (H) (to the extent described in section 2467(6)(D) of this title) shall not prevent the designation of any country as a beneficiary developing country under this subchapter if the President determines that such designation will be in the national economic interest of the United States and reports such determination to the Congress with the reasons therefor.
(c) Factors affecting country designationIn determining whether to designate any country as a beneficiary developing country under this subchapter, the President shall take into account—
(1) an expression by such country of its desire to be so designated;
(2) the level of economic development of such country, including its per capita gross national product, the living standards of its inhabitants, and any other economic factors which the President deems appropriate;
(3) whether or not other major developed countries are extending generalized preferential tariff treatment to such country;
(4) the extent to which such country has assured the United States that it will provide equitable and reasonable access to the markets and basic commodity resources of such country and the extent to which such country has assured the United States that it will refrain from engaging in unreasonable export practices;
(5) the extent to which such country is providing adequate and effective protection of intellectual property rights;
(6) the extent to which such country has taken action to—
(A) reduce trade distorting investment practices and policies (including export performance requirements); and
(B) reduce or eliminate barriers to trade in services; and
(7) whether or not such country has taken or is taking steps to afford to workers in that country (including any designated zone in that country) internationally recognized worker rights.
(d) Withdrawal, suspension, or limitation of country designation
(1) In general
(2) Changed circumstances
(3) Advice to Congress
(e) Mandatory graduation of beneficiary developing countries
(f) Congressional notification
(1) Notification of designation
(A) In general
(B) Designation as least-developed beneficiary developing country
(2) Notification of termination
(Pub. L. 93–618, title V, § 502, as added Pub. L. 104–188, title I, § 1952(a), Aug. 20, 1996, 110 Stat. 1917; amended Pub. L. 104–295, § 35(a), Oct. 11, 1996, 110 Stat. 3538; Pub. L. 106–200, title IV, § 412(a), May 18, 2000, 114 Stat. 298; Pub. L. 107–210, div. D, title XLI, § 4102(a), Aug. 6, 2002, 116 Stat. 1040.)