To authorize the imposition of trade sanctions on countries which threaten the health and safety of United States citizens by failing to cooperate fully with United States policy regarding the reduction and interdiction of illicit drugs.

Requires the United States Trade Representative, with respect to each foreign country identified in a certain annual report by the President to the Congress as a source of narcotic drugs affecting the United States, and not certified as having cooperated with the United States in preventing such narcotic traffic, to assess, and report to specified congressional committees on, whether or not the imposition of trade sanctions on such country is appropriate while taking into account certain factors. Authorizes the President to impose certain trade sanctions against any country that is not certified as having cooperated with the United States in preventing the flow of illegal narcotics from it. Requires the President to invoke all applicable defenses, including exceptions for measures necessary to protect human, animal, or plant life or health, if proceedings are initiated by a country against the United States in the World Trade Organization or under the North American Free Trade Agreement with respect to such trade sanctions.