Page:United States Statutes at Large Volume 113 Part 2.djvu/1020

 113 STAT. 1501A-502 PUBLIC LAW 106-113—APPENDIX G (2) the Secretary of Defense, the Secretary of State, the Secretary of Commerce, and the United States Trade Representative, or their designees, should raise with other industriahzed nations at every suitable venue the need for transparency and reasonable standards to govern the role of offsets in international defense trade; (3) the United States Government should enter into discussions regarding the establishment of multilateral standards for the use of offsets in international defense trade through the appropriate multilateral fora, including such organizations as the Transatlantic Economic Partnership, the Wassenaar Arrangement, the G-8, and the World Trade Organization; and (4) the United States Government, in entering into the discussions described in paragraph (3), should take into account the distortions produced by the provision of other benefits and subsidies, such as export financing, by various countries to support defense trade. SEC. 1245. REPORTING OF OFFSET AGREEMENTS. (a) INITIAL REPORTING OF OFFSET AGREEMENTS.— (1) GOVERNMENT-TO-GOVERNMENT SALES.— Section 36(b)(1) of the Arms Export Control Act (22 U.S.C. 2776(b)(1)) is amended in subparagraph (C) of the fifth sentence, by striking "and a description" and all that follows and inserting "and a description of any offset agreement with respect to such sale;". (2) COMMERCIAL SALES.—Section 36(c)(1) of the Arms Export Control Act (22 U.S.C. 2776(c)(1)) is amended in the second sentence, by striking "(if known on the date of transmittal of such certification)" and inserting "and a description of any such offset agreement". (b) CONFIDENTIALITY OF INFORMATION RELATING TO OFFSET AGREEMENTS. — Section 36 of the Arms Export Control Act (22 U.S.C. 2776) is amended— (1) by redesignating the second subsection (e) (as added by section 155 of Public Law 104-164) as subsection (f); and (2) by adding at the end the following new subsection: "(g) Information relating to offset agreements provided pursuant to subparagraph (C) of the fifth sentence of subsection (b)(1) and the second sentence of subsection (c)(1) shall be treated as confidential information in accordance with section 12(c) of the Export Administration Act of 1979 (50 U.S.C. App. 2411(c)).". SEC, 1246. EXPANDED PROHIBITION ON INCENTIVE PAYMENTS. (a) IN GENERAL. —Section 39A(a) of the Arms Export Control Act (22 U.S.C. 2779a(a)) is amended— (1) by inserting "or licensed" after "sold"; and (2) by inserting "or export" after "sale". (b) DEFINITION OF UNITED STATES PERSON.— Section 39A(d)(3)(B)(ii) of the Arms Export Control Act (22 U.S.C. 2779a(d)(3)(B)(ii)) is amended by inserting "or by an entity described in clause (i)" after "subparagraph (A)". SEC. 1247. ESTABLISHMENT OF REVIEW COMMISSION. (a) IN GENERAL. — There is established a National Commission on the Use of Offsets in Defense Trade (in this section referred

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