Reciprocal Market Access Act of 2018

Summary: Reciprocal Market Access Act of 2018 This bill requires that reductions in tariff rates for imports into the United States are accompanied by reciprocal trade barrier reductions for the same U.S.-produced goods exported to the same foreign country. Before the President agrees to reduce or eliminate a rate of duty for any product to carry out a trade agreement between the United States and a foreign country, the President must certify to Congress that the foreign country has also reduced or eliminated tariff and non-tariff barriers for imports of the same goods from U.S. producers. Violations of a trade agreement by the foreign country are immediately enforceable under the bill. If the foreign country has not reduced a trade barrier as previously agreed, or has imposed a new one, the U.S. Trade Representative (USTR) shall withdraw the duty reduction for the same goods from that country.  The bill allows interested parties to petition the USTR to investigate violations of trade agreements. Interested parties include manufacturers and wholesalers of the goods involved in the alleged violation, as well as unions and trade associations. The bill requires the U.S. International Trade Commission to investigate possible market access opportunities when the President seeks to reduce a rate of duty for an imported good. 

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Reciprocal Market Access Act of 
2018''.

SEC. 2. FINDINGS AND PURPOSE.

    (a) Findings.--Congress finds the following:
            (1) One of the fundamental tenets of the World Trade 
        Organization (WTO) is reciprocal market access. This principle 
        is underscored in the Marrakesh Agreement Establishing the 
        World Trade Organization which called for ``entering into 
        reciprocal and mutually advantageous arrangements directed to 
        the substantial reduction of tariffs and other barriers to 
        trade and to the elimination of discriminatory treatment in 
        international trade relations''.
            (2) The American people have a right to expect that the 
        promises that trade negotiators and policy makers offer in 
        terms of the market access opportunities that will be available 
        to United States businesses and their employees if trade 
        agreements are reached, will, in fact, be realized. A results-
        oriented approach must form the basis of future trade 
        negotiations that includes verification procedures to ensure 
        that the promised market access is achieved and that reciprocal 
        trade benefits result.
            (3) With each subsequent round of bilateral, regional, and 
        multilateral trade negotiations, tariffs have been 
        significantly reduced or eliminated for many manufactured 
        goods, leaving nontariff barriers as the most pervasive, 
        significant, and challenging barriers to United States exports 
        and market opportunities.
            (4) The United States market is widely recognized as one of 
        the most open markets in the world. Average United States 
        tariff rates are very low and the United States has limited, if 
        any, nontariff barriers.
            (5) Often the only leverage the United States has to obtain 
        the reduction or elimination of nontariff barriers imposed by 
        foreign countries is to negotiate the amount of tariffs the 
        United States imposes on imports from those foreign countries.
            (6) Under the current negotiating process, negotiations to 
        reduce or eliminate tariff barriers and nontariff barriers are 
        separate and self-contained, meaning that tradeoffs are tariff-
        for-tariff and nontariff-for-nontariff. As a result, a tariff 
        can be reduced or eliminated without securing elimination of 
        the real barrier or barriers that deny United States businesses 
        access to a foreign market.
    (b) Purpose.--The purpose of this Act is to require that United 
States trade negotiations achieve measurable results for United States 
businesses by ensuring that trade agreements result in expanded market 
access for United States exports and not solely the elimination of 
tariffs on goods imported into the United States.

SEC. 3. LIMITATION ON AUTHORITY TO REDUCE OR ELIMINATE RATES OF DUTY 
              PURSUANT TO CERTAIN TRADE AGREEMENTS.

    (a) Limitation.--Notwithstanding any other provision of law, on or 
after the date of the enactment of this Act, the President may not 
agree to a modification of an existing duty that would reduce or 
eliminate the bound or applied rate of such duty on any product in 
order to carry out a trade agreement entered into between the United 
States and a foreign country until the President transmits to Congress 
a certification described in subsection (b).
    (b) Certification.--A certification referred to in subsection (a) 
is a certification by the President that--
            (1) the United States has obtained the reduction or 
        elimination of tariff and nontariff barriers and policies and 
        practices of the government of a foreign country described in 
        subsection (a) with respect to United States exports of any 
        product identified by United States domestic producers as 
        having the same physical characteristics and uses as the 
        product for which a modification of an existing duty is sought 
        by the President as described in subsection (a); and
            (2) a violation of any provision of the trade agreement 
        described in subsection (a) relating to the matters described 
        in paragraph (1) is immediately enforceable in accordance with 
        the provisions of section 4.

SEC. 4. ENFORCEMENT PROVISIONS.

    (a) Withdrawal of Tariff Concessions.--If the President does agree 
to a modification described in section 3(a), and the United States 
Trade Representative determines pursuant to subsection (c) that--
            (1) a tariff or nontariff barrier or policy or practice of 
        the government of a foreign country described in section 3(a) 
        has not been reduced or eliminated; or
            (2) a tariff or nontariff barrier or policy or practice of 
        such government has been imposed or discovered,
the United States Trade Representative shall withdraw the modification 
until such time as the President transmits to Congress a certification 
described in section 3(b)(1).
    (b) Investigation.--
            (1) In general.--The United States Trade Representative, in 
        coordination with the Department of Labor, shall initiate an 
        investigation if an interested party files a petition with the 
        United States Trade Representative which alleges the elements 
        necessary for the withdrawal of the modification of an existing 
        duty under subsection (a), and which is accompanied by 
        information reasonably available to the petitioner supporting 
        such allegations.
            (2) Interested party defined.--For purposes of paragraph 
        (1), the term ``interested party'' means--
                    (A) a manufacturer, producer, or wholesaler in the 
                United States of a domestic product that has the same 
                physical characteristics and uses as the product for 
                which a modification of an existing duty is sought;
                    (B) a certified union or recognized union or group 
                of workers engaged in the manufacture, production, or 
                wholesale in the United States of a domestic product 
                that has the same physical characteristics and uses as 
                the product for which a modification of an existing 
                duty is sought;
                    (C) a trade or business association a majority of 
                whose members manufacture, produce, or wholesale in the 
                United States a domestic product that has the same 
                physical characteristics and uses as the product for 
                which a modification of an existing duty is sought; or
                    (D) a member of the Committee on Ways and Means of 
                the House of Representatives or a member of the 
                Committee on Finance of the Senate.
    (c) Determination by USTR.--Not later than 45 days after the date 
on which a petition is filed under subsection (b), the United States 
Trade Representative shall--
            (1) determine whether the petition alleges the elements 
        necessary for the withdrawal of the modification of an existing 
        duty under subsection (a); and
            (2) notify the petitioner of the determination under 
        paragraph (1) and the reasons for the determination.

SEC. 5. MARKET ACCESS ASSESSMENT BY UNITED STATES INTERNATIONAL TRADE 
              COMMISSION.

    (a) In General.--With respect to any proposed trade agreement in 
which the President seeks a modification of an existing duty that would 
reduce or eliminate the bound or applied rate of such duty on any 
product in order to carry out a trade agreement entered into between 
the United States and a foreign country, the United States 
International Trade Commission shall initiate an investigation and 
report as to the possible market access opportunities of the 
modification or elimination of foreign tariff and nontariff measures 
for United States industries producing and exporting similar products. 
In preparing its report, the International Trade Commission shall 
identify the tariff and nontariff measures for such products and the 
expected opportunities for United States exports.
    (b) Consultation.--In preparing its report under subsection (a), 
the United States International Trade Commission shall, as appropriate, 
seek to obtain relevant information from domestic producers of similar 
products, industry associations, government representatives, and other 
interested organizations.
    (c) Report.--
            (1) In general.--Not later than 240 days after the 
        President notifies Congress of his intent to enter into 
        negotiations for a proposed trade agreement described in 
        subsection (a), or not later than 45 days after the President 
        notifies Congress of his intent to enter into a trade 
        agreement, whichever occurs first, the United States 
        International Trade Commission shall submit to the United 
        States Trade Representative, the Secretary of Commerce, and 
        Congress the report required under subsection (a).
            (2) Form.--Such report shall be submitted in unclassified 
        form, but may contain a classified annex, if necessary.