(a) (1) The Secretary of the Treasury
shall instruct the United States Executive Director of each of the
multilateral development banks (in this section referred to as the
“banks”) and of the Fund to initiate a wide consultation with the
Managing Director of each of the banks and of the Fund and the other
directors of the banks and of the Fund with regard to the development
of financial assistance policies which, to the maximum feasible extent—
(A) reduce obstacles to and restrictions upon international trade
and investment in goods and services;
(B) eliminate unfair trade and investment
practices; and
(C)
promote mutually advantageous economic relations.
(2) The Secretary of the
Treasury shall work closely in this effort with the Trade Policy Committee.
(3) As part of this effort,
the Secretary of the Treasury shall also instruct the United States
Executive Director of each of the banks and of the Fund to encourage
close cooperation between their staff and the Secretariat of the World
Trade Organization (as the term “World Trade Organization” is defined
in section 2(8) of the Uruguay Round Agreements Act).
1-501.28
(b) (1) The Secretary of the Treasury
shall instruct the United States Executive Director of each
of the banks and of the Fund, prior to the extension to any country
of financial assistance by the banks and by the Fund, to work to have
the banks and the Fund obtain the agreement of such country to eliminate,
in a manner consistent with its balance of payments adjustment program,
unfair trade and investment practices with respect to goods and services
which the United States Trade Representative, after consultation with
the Trade Policy Committee, has determined to have a significant deleterious
effect on the international trading system.
(2) Such practices include—
(A) the
provision of predatory export subsidies, employed in connection with
the exporting of agricultural commodities and products thereof to
foreign countries;
(B) the provision of other export subsidies, such as government subsidized
below-market interest rate financing for commodities or manufactured
goods;
(C) unreasonable
import restrictions;
(D) the imposition of trade-related performance requirements on foreign
investment; and
(E)
practices which are inconsistent with international agreements.
1-501.29
(c) (1) In determining the United
States position on requests for loans or periodic drawing under bank
and Fund programs, the Secretary of the Treasury shall take full account
of the progress countries have made in achieving targets for eliminating
or phasing out the practices referred to in subsection (b) of this
section.
(2) In the
event that the United States supports a request for loans or drawing
by a country that has not achieved the bank and Fund targets relating
to such practices specified in its program, the Secretary of the Treasury
shall report to the appropriate committees of the Congress the reasons
for the United States position.
(d) For purposes of this section, the term “multilateral
development banks” means the International Bank for Reconstruction
and Development, the Inter-American Development Bank, the African
Development Bank, and the Asian Development Bank.
[22 USC 286gg. As added
by act of Nov. 30, 1983 (97 Stat. 1275) and amended by acts of Oct.
30, 1986 (100 Stat. 3341-240) and June 25, 1999 (113 Stat. 133).]
