Trade Act of 1974

Fast track authority

Power to counteract unfair foreign trade practices

• Section 135 of the Act provides for the establishment of the Labor Advisory Committee for Trade Negotiations and Trade Policy whose duty is to provide advice and information to the Office of the United States Trade Representative and the Secretary of Labor regarding the U.S.'s negotiating objectives and bargaining positions before the nation enters into trade agreements with foreign countries. LAC is to meet on any trade agreement and provide a report to the President, the Congress, and the Office of the USTR at the conclusion of negotiations.
• Section 201 of the Act requires the International Trade Commission to investigate petitions filed by domestic industries or workers claiming injury or threat of injury due to expanding imports. Investigations must be completed within 6 months. If such injury is found, restrictive measures may be implemented. Action under Section 201 is allowed under the GATT escape clause, GATT Article XIX.
• Section 301 was designed to eliminate unfair foreign trade practices that adversely affect U.S. trade and investment in both goods and services. Under Section 301, the President must determine whether the alleged practices are unjustifiable, unreasonable, or discriminatory and burden or restrict U.S. commerce. If the President determines that action is necessary, the law directs that all appropriate and feasible action within the President’s power should be taken to secure the elimination of the practice. A Special 301 Report is prepared annually by the Office of the USTR which must identify a list of "Priority Foreign Countries", those countries judged to have inadequate intellectual property laws; these countries may be subject to sanctions. This has been issued every year beginning in 1989 since the enactment of the Omnibus Foreign Trade and Competitiveness Act of 1988 and the Uruguay Round Agreements Act.