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(c) INDEPENDENT VERIFICATION OBJECTIVE.—The 2 President shall seek to establish in the renegotiation provided 3 for in part IX, paragraph 6, of the Agreement a system for 4 independent verification of information provided by parties to 5 the Agreement to the Committee on Government Procure6 ment pursuant to part VI, paragraph 9, of the Agreement. (d) REPORTS ON NEGOTIATIONS.

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(1) REPORT IN THE EVENT OF INADEQUATE PROGRESS.—If, during the renegotiations of the Agreement, the President at any time determines that the renegotiations are not progressing satisfactorily and are not likely to result, within twelve months of the commencement thereof, in an expansion of the Agreement to cover purchases by the entities of the governments of developed countries which are the principal purchasers of goods and equipment in appropriate product sectors, he shall so report to the congressional committees referred to in section 302(c)(1). Taking into account the objectives set forth in subsections (a) and (b) of this section and the factors required to be analyzed under section 302(t), the President shall further report to such committees appropriate actions to seek reciprocity in such product sectors with such countries in the area of government procurement.

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304. EXPANSION OF THE COVERAGE OF THE

1 SEC.

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(a) OVERALL NEGOTIATING OBJECTIVE.-The Presi4 dent shall seek in the renegotiations provided for in part IX, 5 paragraph 6, of the Agreement more open and equitable 6 market access abroad, and the harmonization, reduction, or 7 elimination of devices which distort trade or commerce relat8 ed to Government procurement, with the overall goal of 9 maximizing the economic benefit to the United States 10 through maintaining and enlarging foreign markets for prod11 ucts of United States agriculture, industry, mining, and 12 commerce, the development of fair and equitable market 13 opportunities, and open and nondiscriminatory world trade. 14 In carrying out the provisions of this subsection, the Presi15 dent shall consider the assessment made in the report 16 required under section 306(a).

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(b) SECTOR NEGOTIATING OBJECTIVES.-The Presi18 dent shall seek, consistent with the overall objective set forth 19 in subsection (a) and to the maximum extent feasible, with 20 respect to appropriate product sectors, competitive opportu21 nities for the export of United States products to the devel22 oped countries of the world equivalent to the competitive 23 opportunities afforded by the United States, taking into ac24 count all barriers to, and other distortions of, international 25 trade effecting that sector.

AGREEMENT.

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(c) INDEPENDENT VERIFICATION OBJECTIVE.-The 2 President shall seek to establish in the renegotiation provided 3 for in part IX, paragraph 6, of the Agreement a system for 4 independent verification of information provided by parties to 5 the Agreement to the Committee on Government Procure6 ment pursuant to part VI, paragraph 9, of the Agreement.

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(d) REPORTS ON NEGOTIATIONS.

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(1) REPORT IN THE EVENT OF INADEQUATE PROGRESS.-If, during the renegotiations of the Agreement, the President at any time determines that the renegotiations are not progressing satisfactorily and are not likely to result, within twelve months of the commencement thereof, in an expansion of the Agreement to cover purchases by the entities of the governments of developed countries which are the principal purchasers of goods and equipment in appropriate product sectors, he shall so report to the congressional committees referred to in section 302(c)(1). Taking into account the objectives set forth in subsections (a) and (b) of this section and the factors required to be analyzed under section 302(t), the President shall further report to such committees appropriate actions to seek reciprocity in such product sectors with such countries in the area of government procurement.

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(2) LEGISLATIVE RECOMMENDATIONS.-Taking

into account the factors required to be analyzed under section 302(c), the President may recommend to the Congress legislation (with respect to entities of the Government which are not covered by the Agreement) which may prohibit such entities from purchasing products of such countries.

(3) ANNUAL REPORTS.-Each annual report of the President under section 163(a) of the Trade Act of 1974 made after the date of enactment of this Act

shall report the actions, if any, the President deemed appropriate to establish reciprocity in appropriate product sectors with major industrial countries in the area

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of government procurement.

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(e) EXTENSION OF NONDISCRIMINATION AND NA16 TIONAL TREATMENT.-Before exercising the waiver author17 ity in section 301 for procurement not covered by the Agree18 ment on the date of enactment of this Act, the President shall 19 follow the consultation provisions of section 135 and chapter 20 6 of title I of the Trade Act of 1974 for private sector and 21 congressional consultations.

22 SEC. 305. MONITORING AND ENFORCEMENT.

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(a) MONITORING AND ENFORCEMENT STRUCTURE 24 RECOMMENDATIONS.—In the preparation of the recommen25 dations for the reorganization of trade functions, the Presi

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1 gress a report which assesses the economic impact, including 2 the impact on employment in various regions of the United 3 States, of the waiver of the provisions of title III of the Act 4 of March 3, 1933 (41 U.S.C. 10a et seq.), commonly referred 5 to as the Buy American Act, in the procurement of products 6 produced in labor surplus areas and of the waiver of procure7 ment set-asides for labor surplus areas.

8 (b) EFFECT ON TARGETS.-On or before July 1, 1981, 9 the President shall prepare and transmit to the Congress a 10 report which assesses the effect of the waiver of the provi11 sions of such title III in the procurement of products pro12 duced in labor surplus areas and the waiver of procurement 13 set-asides for labor surplus areas on the fulfillment of the 14 objectives of Executive Order 12073, issued August 16, 15 1978, relating to the encouragement of procurement in labor 16 surplus areas, including an assessment of such waiver on the 17 procurement targets set by the Administrator of the General 18 Services Administration pursuant to such Executive order. 19 On or before January 1, 1980, the President shall begin con20 sultation with and provide interim reports to the congression21 al committees referred to in section 302(c)(1) concerning the 22 report required by the preceding sentence.