To establish the Emergency Trade Deficit Commission, and for other purposes.

SECTION 1. FINDINGS.

    Congress makes the following findings:
            (1) The United States has run persistent trade deficits 
        since 1978, and many of the trade deficits since 2000 have been 
        especially large.
            (2) The United States trade deficit rose from 
        $374,900,000,000 in 2009 to $497,800,000,000 in 2010, an 
        increase of 33 percent.
            (3) Many of the trade deficits are structural--that is, 
        with the same countries, year after year. In 2010, the United 
        States continued to have significant merchandise trade deficits 
        with the People's Republic of China ($273,100,000,000), the 
        European Union ($79,800,000,000), Japan ($59,800,000,000), and 
        Mexico ($66,300,000,000), notwithstanding the overall decline 
        in the United States trade deficit. In fact, in 2010, China 
        accounted for 42 percent of the United States merchandise trade 
        deficit.
            (4) While the United States has one of the most open 
        borders and economies in the world, the United States faces 
        significant tariff and nontariff trade barriers with its 
        trading partners.

SEC. 2. ESTABLISHMENT OF COMMISSION.

    (a) Establishment.--There is established a commission to be known 
as the Emergency Trade Deficit Commission (in this Act referred to as 
the ``Commission'').
    (b) Membership of Commission.--
            (1) Composition.--The Commission shall be composed of 11 
        members, of whom--
                    (A) three persons shall be appointed by the 
                President, of whom one shall be appointed to represent 
                labor interests, one shall be appointed to represent 
                small businesses, and one shall be appointed to 
                represent manufacturing interests;
                    (B) two persons shall be appointed by the President 
                pro tempore of the Senate upon the recommendation of 
                the majority leader of the Senate, after consultation 
                with the Chairman of the Committee on Finance of the 
                Senate;
                    (C) two persons shall be appointed by the President 
                pro tempore of the Senate upon the recommendation of 
                the minority leader of the Senate, after consultation 
                with the ranking minority member of the Committee on 
                Finance of the Senate;
                    (D) two persons shall be appointed by the Speaker 
                of the House of Representatives, after consultation 
                with the Chairman of the Committee on Ways and Means of 
                the House of Representatives; and
                    (E) two persons shall be appointed by the minority 
                leader of the House of Representatives, after 
                consultation with the ranking minority member of the 
                Committee on Ways and Means of the House of 
                Representatives.
            (2) Qualifications of members.--
                    (A) Presidential appointments.--Of the persons 
                appointed under paragraph (1)(A), not more than one may 
                be an officer, employee, or paid consultant of the 
                executive branch.
                    (B) Other appointments.--Persons appointed under 
                subparagraph (B), (C), (D), or (E) of paragraph (1) 
                shall be persons who--
                            (i) have expertise in economics, 
                        international trade, manufacturing, labor, 
                        environment, or business, or have other 
                        pertinent qualifications or experience; and
                            (ii) are not officers or employees of the 
                        United States.
                    (C) Other considerations.--In appointing members of 
                the Commission, every effort shall be made to ensure 
                that the members--
                            (i) are representative of a broad cross-
                        section of economic and trade perspectives 
                        within the United States; and
                            (ii) provide fresh insights in to 
                        identifying the causes and consequences of the 
                        United States trade deficit and developing 
                        recommendations to address structural trade 
                        imbalances.
    (c) Period of Appointment; Vacancies.--
            (1) In general.--Members shall be appointed not later than 
        60 days after the date of the enactment of this Act and the 
        appointment shall be for the life of the Commission.
            (2) Vacancies.--Any vacancy in the Commission shall not 
        affect its powers, but shall be filled in the same manner as 
        the original appointment was made.
    (d) Initial Meeting.--Not later than 30 days after the date on 
which all members of the Commission have been appointed, the Commission 
shall hold its first meeting.
    (e) Meetings.--The Commission shall meet at the call of the 
Chairperson.
    (f) Chairperson and Vice Chairperson.--The members of the 
Commission shall elect a chairperson and vice chairperson from among 
the members of the Commission.
    (g) Quorum.--A majority of the members of the Commission shall 
constitute a quorum for the transaction of business.
    (h) Voting.--Each member of the Commission shall be entitled to one 
vote, which shall be equal to the vote of every other member of the 
Commission.

SEC. 3. DUTIES OF THE COMMISSION.

    (a) In General.--The Commission shall be responsible for examining 
the nature, causes, and consequences of the United States trade deficit 
and providing recommendations on how to address and reduce structural 
trade imbalances, including with respect to the United States 
merchandise trade deficit, in order to promote sustainable economic 
growth that provides broad-based income and employment gains.
    (b) Causes of U.S. Trade Deficit.--In examining the causes of the 
United States trade deficit, the Commission shall, among other things--
            (1) identify and assess the impact of macroeconomic 
        factors, including currency practices, foreign government 
        purchases of United States assets, and savings and investment 
        rates, including savings rates of foreign state-owned 
        enterprises, on United States bilateral trade imbalances and 
        global trade imbalances;
            (2) with respect to countries with which the United States 
        has significant, persistent sectoral or bilateral trade 
        deficits, assess with respect to the magnitude and composition 
        of such trade deficits--
                    (A) the impact of tariff and nontariff barriers 
                maintained by such countries and the lack of reciprocal 
                market access as a result of such barriers;
                    (B) the impact of investment, offset, and 
                technology transfer requirements by such countries;
                    (C) any impact due to the failure of such countries 
                to adhere to internationally recognized labor 
                standards, including the extent to which such failure 
                affects conditions of competition with the United 
                States or the ability of consumers in such countries to 
                buy United States goods and services;
                    (D) any impact due to differences in levels of 
                environmental protection and enforcement of 
                environmental laws between such countries and the 
                United States, including the extent to which such 
                differences affect conditions of competition with the 
                United States;
                    (E) policies maintained by such countries that 
                assist manufacturers in such countries, including the 
                impact of such policies on manufacturers in the United 
                States; and
                    (F) the impact of border tax adjustments by such 
                countries;
            (3) examine the impact of free trade agreements on the 
        United States trade deficit;
            (4) examine the impact of investment flows both into and 
        out of the United States on the trade deficit, including--
                    (A) the impact of United States outbound investment 
                on the United States trade deficit and on standards of 
                living and production in the United States;
                    (B) the impact that the relocation of production 
                facilities overseas has on the United States trade 
                deficit, including by reviewing major domestic plant 
                closures over an appropriate representative period to 
                determine how much production terminated from such 
                closures was relocated offshore;
                    (C) the impact of foreign direct investment in the 
                United States on the United States trade deficit and on 
                standards of living and production in the United 
                States; and
                    (D) the impact of United States bilateral 
                investment treaties, including bilateral investment 
                treaties under negotiation, on the United States trade 
                deficit;
            (5) examine the role and impact of imports of oil and other 
        energy products on the United States trade deficit; and
            (6) assess the extent to which United States foreign policy 
        interests influence United States economic and trade policies.
    (c) Consequences of U.S. Trade Deficit.--In examining the 
consequences of the United States trade deficit, the Commission shall, 
among other things--
            (1) identify and, to the extent practicable, quantify the 
        impact of the trade deficit on the overall domestic economy, 
        and, with respect to different sectors of the economy, on 
        manufacturing capacity, on the number and quality of jobs, on 
        wages, and on health, safety, and environmental standards;
            (2) assess the effects the trade deficits in the areas of 
        manufacturing and technology have on defense production and 
        innovation capabilities of the United States; and
            (3) assess the impact of significant, persistent trade 
        deficits, including sectoral and bilateral trade deficits, on 
        United States economic growth.
    (d) Recommendations.--In making recommendations, the Commission 
shall, among other things--
            (1) identify specific strategies for achieving improved 
        trade balances with those countries with which the United 
        States has significant, persistent sectoral or bilateral trade 
        deficits;
            (2) identify United States trade policy tools including 
        enforcement mechanisms that can be more effectively used to 
        address the underlying causes of structural trade deficits;
            (3) identify domestic and trade policies that can enhance 
        the competitiveness of United States manufacturers domestically 
        and globally, including those policies of the United States and 
        other countries that have been successful in promoting 
        competitiveness;
            (4) address ways to improve the coordination and 
        accountability of Federal departments and agencies relating to 
        trade; and
            (5) examine ways to improve the adequacy of the collection 
        and reporting of trade data, including identifying and 
        developing additional databases and economic measurements that 
        may be needed to properly assess the causes and consequences of 
        the United States trade deficit.

SEC. 4. REPORT.

    (a) Report.--Not later than 16 months after the date of the 
enactment of this Act, the Commission shall submit to the President and 
the Committee on Ways and Means of the House of Representatives and the 
Committee on Finance of the Senate a report that contains--
            (1) the findings and conclusions of the Commission 
        described in section 3; and
            (2) any recommendations for administrative and legislative 
        actions as the Commission considers necessary.
    (b) Separate Views.--Any member of the Commission may submit 
additional findings and recommendations as part of the report.

SEC. 5. POWERS OF COMMISSION.

    (a) Hearings.--The Commission may hold such hearings, sit and act 
at such times and places, take such testimony, and receive such 
evidence as the Commission considers advisable to carry out this Act. 
The Commission shall hold at least seven public hearings, one or more 
in Washington, DC, and four in different regions of the United States.
    (b) Information From Federal Agencies.--The Commission may secure 
directly from any Federal department or agency such information as the 
Commission considers necessary to carry out this Act. Upon request of 
the Chairperson of the Commission, the head of such department or 
agency shall furnish such information to the Commission.
    (c) Postal Services.--The Commission may use the United States 
mails in the same manner and under the same conditions as other Federal 
departments and agencies.

SEC. 6. COMMISSION PERSONNEL MATTERS.

    (a) Compensation of Members.--Each member of the Commission who is 
not an officer or employee of the Federal Government shall be 
compensated at a rate equal to the daily equivalent of the annual rate 
of basic pay prescribed for level IV of the Executive Schedule under 
section 5315 of title 5, United States Code, for each day (including 
travel time) during which such member is engaged in the performance of 
the duties of the Commission. All members of the Commission who are 
officers or employees of the United States shall serve without 
compensation in addition to that received for their services as 
officers or employees of the United States.
    (b) Travel Expenses.--The members of the Commission shall be 
allowed travel expenses, including per diem in lieu of subsistence, at 
rates authorized for employees of agencies under subchapter I of 
chapter 57 of title 5, United States Code, while away from their homes 
or regular places of business in the performance of duties of the 
Commission.
    (c) Staff.--
            (1) In general.--The Chairperson of the Commission may, 
        without regard to the civil service laws and regulations, 
        appoint and terminate an executive director and such other 
        additional personnel as may be necessary to enable the 
        Commission to perform its duties. The employment of an 
        executive director shall be subject to confirmation by the 
        Commission.
            (2) Compensation.--The Chairperson of the Commission may 
        fix the compensation of the executive director and other 
        personnel without regard to the provisions of chapter 51 and 
        subchapter III of chapter 53 of title 5, United States Code, 
        relating to classification of positions and General Schedule 
        pay rates, except that the rate of pay for the executive 
        director and other personnel may not exceed the rate payable 
        for level V of the Executive Schedule under section 5316 of 
        such title.
    (d) Detail of Government Employees.--Any Federal Government 
employee may be detailed to the Commission without reimbursement, and 
such detail shall be without interruption or loss of civil service 
status or privilege.
    (e) Procurement of Temporary and Intermittent Services.--The 
Chairperson of the Commission may procure temporary and intermittent 
services under section 3109(b) of title 5, United States Code, at rates 
for individuals which do not exceed the daily equivalent of the annual 
rate of basic pay prescribed for level V of the Executive Schedule 
under section 5316 of such title.

SEC. 7. AUTHORIZATION OF APPROPRIATIONS; GAO AUDIT.

    (a) In General.--There are authorized to be appropriated $2,000,000 
to the Commission to carry out this Act.
    (b) GAO Audit.--Not later than 6 months after the date on which the 
Commission terminates, the Comptroller General of the United States 
shall complete an audit of the financial books and records of the 
Commission and shall submit a report on the audit to the President and 
the Congress.

SEC. 8. TERMINATION OF COMMISSION.

    The Commission shall terminate 30 days after the date on which the 
Commission submits its report under section 4(a).

SEC. 9. MORATORIUM ON FREE TRADE AGREEMENTS.

    The President shall not submit to the Congress any free trade 
agreement, or any legislation implementing a free trade agreement, 
until the report of the Commission has been delivered to the Congress 
and the President under section 4(a).

Summary: Establishes the Emergency Trade Deficit Commission to examine, and report to the President and Congress on, the causes of the US trade deficit, together with recommendations to address and reduce trade imbalances, such as the US merchandise trade deficit, in order to promote sustainable economic growth that provides broad-based income and employment gains. Prohibits the President from submitting to Congress any free trade agreement or legislation implementing one until the report has been delivered to Congress and to the President.