A bill to authorize the President to enter into a trade agreement concerning Northern Ireland and certain border counties of the Republic of Ireland, and for other purposes.

SECTION 1. FINDINGS.

    Congress makes the following findings:
            (1) It is in the interest of the United States that the 
        precarious peace process now underway in Northern Ireland and 
        the Republic of Ireland succeed, both to ensure stability for 
        important allies and friends of the United States and to assure 
        a mutually beneficial flow of trade and commerce.
            (2) Locally sustainable economic development within 
        Northern Ireland and the border counties of the Republic of 
        Ireland creates the basis for political stability and enhances 
        the likelihood of peace.
            (3)(A) The granting of reasonable tariff concessions for 
        products and goods originating in Northern Ireland and the 
        border counties of the Republic of Ireland will provide an 
        incentive for such development.
            (B) Because both the United Kingdom and the Republic of 
        Ireland are members of the European Union (hereafter in this 
        Act referred to as the ``EU''), tariff issues relating to 
        Northern Ireland and the border counties of the Republic of 
        Ireland are subject to the common commercial policy provided 
        for in Article 113 of the Treaty of Rome, and any negotiations 
        concerning them must conform to EU law and Paragraphs 5, 6, 7, 
        and 8 of Article XXIV of the GATT 1994.
            (C) While there is no precedent in EU practice for the free 
        trade agreement contemplated in this Act, the effect of such an 
        agreement will be to support important on-going efforts by the 
        EU to achieve greater social cohesion in a unique and 
        disadvantaged region, to the long-term benefit of the EU, the 
        United States, and the larger international community.
            (4) The President should be authorized to negotiate such 
        concessions in accordance with the terms and conditions set 
        forth in the Act.

SEC. 2. FREE TRADE AGREEMENT WITH NORTHERN IRELAND.

    (a) Negotiations.--
            (1) In general.--The President may enter into a trade 
        agreement with respect to qualified areas of Northern Ireland 
        and the Republic of Ireland which provides for--
                    (A) the harmonization, reduction, and elimination 
                of trade barriers;
                    (B) the prohibition of or limitations on the 
                imposition of trade barriers; and
                    (C) the elimination or reduction of any duty 
                imposed by the United States.
            (2) Agreement limited to qualified areas of northern 
        ireland and the republic of ireland.--Notwithstanding any other 
        provision of law, no trade benefit shall be extended to any 
        country by reason of the extension of any trade benefit to 
another country under a trade agreement entered into under paragraph 
(1) with such other country.
    (b) Limitations and Staging.--
            (1) In general.--No proclamation may be made under 
        subsection (a) that--
                    (A) reduces any rate of duty (other than a rate of 
                duty that does not exceed 5 percent ad valorem on the 
                date of enactment of this Act) to a rate of duty which 
                is less than 5 percent of the rate of duty that applies 
                on such a date of enactment;
                    (B) reduces the rate of duty on an article over a 
                period greater than 10 years after the first reduction 
                that is proclaimed to carry out a trade agreement with 
                respect to such article; or
                    (C) increase any rate of duty above the rate that 
                applies on the date of enactment of this Act.
            (2) Limitation on aggregate reduction.--The aggregate 
        reduction in the rate of duty on any article which is in effect 
        on any day pursuant to a trade agreement entered into under 
        subsection (a) shall not exceed the aggregate reduction which 
        would have been in effect on such a day if a reduction of 3 
        percent ad valorem per year or a reduction of 10 percent per 
        year of the total reduction, whichever is greater, had taken 
        effect on the effective date of the first reduction proclaimed 
        pursuant to subsection (a).
            (3) Exemption from staging.--No staging is required under 
        paragraph (2) with respect to a duty reduction that is 
        proclaimed under subsection (a) for an article of a kind that 
        is not produced in the United States. The United States 
        International Trade Commission shall advise the President of 
        the identity of articles that may be exempted from staging 
        under this paragraph.
            (4) Rounding.--If the President determines that such action 
        will simplify the computation of reductions under paragraph (1) 
        or (2), the President may round an annual reduction by an 
        amount equal to the lesser of--
                    (A) the difference between the reduction without 
                regard to this paragraph and the next lower whole 
                number; or
                    (B) one-half of 1 percent ad valorem.
            (5) Other limitations.--A rate of duty reduction or 
        increase that may not be proclaimed by reason of paragraph (1) 
        may take effect only if a provision authorizing such reduction 
is included within an implementing bill provided for in connection with 
the agreement authorized by this Act and that bill is enacted into law.

SEC. 3. CRITERIA FOR DUTY-FREE TREATMENT OF ARTICLES.

    (a) In General.--
            (1) Article must be growth, product, or manufacture of 
        qualified area of northern ireland or the republic of 
        ireland.--The reduction or elimination of any duty imposed on 
        any article by the United States provided for in a trade 
        agreement entered into with a qualified area of Northern 
        Ireland or the Republic of Ireland under this Act shall apply 
        only if--
                    (A) that article is the growth, product, or 
                manufacture of a qualified area of Northern Ireland or 
                the Republic of Ireland or is a new or different 
                article of commerce that has been grown, produced, or 
                manufactured in a qualified area of Northern Ireland or 
                the Republic of Ireland;
                    (B) that article is imported directly from a 
                qualified area of Northern Ireland or the Republic of 
                Ireland into the customs territory of the United 
                States; and
                    (C) the sum of--
                            (i) the cost of value of the materials 
                        produced in a qualified area of Northern 
                        Ireland or the Republic of Ireland, plus
                            (ii) the direct costs of processing 
                        operations performed in a qualified area of 
                        Northern Ireland or the Republic of Ireland,
                is not less than 35 percent of the appraised value of 
                such article at the time it is entered.
        If the cost or value of materials produced in the customs 
        territory of the United States is included with respect to an 
        article to which this subsection applies, an amount not to 
        exceed 15 percent of the appraised value of the article at the 
        time it is entered that is attributable to such United States 
        cost or value may be applied toward determining the percentage 
        referred to in subparagraph (C).
            (2) Other requirements.--No article may be considered to 
        meet the requirements of paragraph (1)(A) by virtue of having 
        merely undergone--
                    (A) simple combining or packaging operations; or
                    (B) mere dilution with water or mere dilution with 
                another substance that does not materially alter the 
                characteristics of the article.
    (b) Direct Costs.--As used in this section, the term ``direct costs 
of processing operations''--
            (1) includes, but is not limited to--
                    (A) all actual labor costs involved in the growth, 
                production, manufacture, or assembly of the specific 
                merchandise, including fringe benefits, on-the-job 
                training, and the cost of engineering, supervisory, 
                quality control, and similar personnel; and
                    (B) dies, molds, tooling, and depreciation on 
                machinery and equipment which are allocable to the 
                specific merchandise; and
            (2) does not include costs which are not directly 
        attributable to the merchandise concerned, or are not costs of 
        manufacturing the product, such as--
                    (A) profit; and
                    (B) general expenses of doing business which are 
                either not allocable to the specific merchandise or are 
                not related to the growth, production, manufacture, or 
                assembly of the merchandise, such as administrative 
                salaries, casualty and liability insurance, 
                advertising, and salesmen's salaries, commissions, or 
                expenses.
    (c) Regulations.--The Secretary of the Treasury, after consultation 
with the United States Trade Representative, shall prescribe such 
regulations as may be necessary to carry out this section.

SEC. 4. ITC REPORTS.

    Before any reduction or elimination of any duty is proclaimed with 
respect to any article under this Act, the United States International 
Trade Commission shall advise the President regarding the probable 
economic effect of providing duty-free treatment for such article that 
is a product of a qualified area of Northern Ireland or the Republic of 
Ireland on industries in the United States producing like or directly 
competitive articles and on consumers.

SEC. 5. CONSULTATION WITH CONGRESS BEFORE AGREEMENT ENTERED INTO.

    (a) Consultation.--Before entering into any trade agreement under 
this Act, the President shall consult with--
            (1) the Committee on Ways and Means of the House of 
        Representatives and the Committee on Finance of the Senate; and
            (2) each other committee of the House of Representatives 
        and the Senate, and each joint committee of the Congress, which 
        has jurisdiction over legislation involving subject matters 
        which would be affected by the trade agreement.
    (b) Scope.--The consultation described in subsection (a) shall 
include consultation with respect to--
            (1) the nature of the agreement;
            (2) how the agreement related to the obligations of the 
        parties; and
            (3) all matters relating to the implementation of the 
        agreement, including whether the agreement includes subject 
        matter for which supplemental implementing legislation may be 
        required.

SEC. 6. IMPLEMENTATION OF TRADE AGREEMENTS.

    (a) Notification and Submission.--Any agreement entered into under 
this Act shall enter into force with respect to the United States if 
(and only if)--
            (1) the President, at least 90 calendar days before the day 
        on which the President enters into the trade agreement, 
        notifies the House of Representatives and the Senate of the 
        President's intention to enter into the agreement, and promptly 
        thereafter publishes notice of such intention in the Federal 
        Register;
            (2) within 60 days after entering into the agreement, the 
        President submits to Congress a description of those changes to 
        existing laws that the President considers would be required in 
        order to bring the United States into compliance with the 
        agreement;
            (3) after entering into the agreement, the President 
        submits a copy of the final text of the agreement, together 
        with--
                    (A) a draft of an implementing bill, if necessary;
                    (B) a statement of any administrative action 
                proposed to implement the trade agreement; and
                    (C) the supporting information described in 
                paragraph (2); and
            (4) the implementing bill, if necessary, is enacted into 
        law.
    (b) Supporting Information.--The supporting information required 
under subsection (a)(3)(C) consists of--
            (1) an explanation as to how the implementing bill and 
        proposed administrative action will change or affect existing 
        law; and
            (2) a statement setting forth the reasons of the President 
        regarding how the agreement serves the interest of United 
        States commerce.

SEC. 7. DEFINITIONS.

    As used in this Act:
            (1) Qualifying area.--
                    (A) In general.--The term ``qualifying area'' means 
                a county that--
                            (i) is contiguous to Northern Ireland;
                            (ii) suffers from the severest form of 
                        economic deprivation, as defined by the United 
                        Kingdom's report, Relative Deprivation in 
                        Northern Ireland, Occasional Paper Number 28, 
                        Policy Planning and Research Unit, September, 
                        and the European Union's report, Special 
                        Support Programme for Peace and Reconciliation 
                        1995-1999, including--
                                    (I) in Northern Ireland, the 
                                counties of Derry, Limavady, Strabane, 
                                Magherafelt, Omagh, Cookstown, 
                                Dungannon, Fermanagh, Moyle, Newry and 
                                Mourne, Armagh, and those parts of 
                                Belfast Urban area known as ``Making 
                                Belfast Work'' designated areas; and
                                    (II) in the Republic of Ireland, 
                                the border counties of Donegal, Sligo, 
                                Leitrim, Cavan, Monaghan and Louth;
                            (iii) has a rate of unemployment higher 
                        than the local or urban average of unemployment 
                        in Northern Ireland; and
                            (iv) in the case of county in which there 
                        is a history of workplace discrimination, meets 
                        the requirements of subparagraph (B).
                    (B) Requirements.--A county meets the requirements 
                of this subparagraph if the employers in that county 
                are in compliance with the principles of economic 
                justice known as the ``MacBride Principles'', which 
                are--
                            (i) increasing the representation of 
                        individuals from underrepresented religious 
                        groups in the workforce, including managerial, 
                        supervisory, administrative, clerical, and 
                        technical jobs;
                            (ii) providing adequate security for the 
                        protection of minority employees at the 
                        workplace;
                            (iii) banning provocative sectarian or 
                        political emblems from the workplace;
                            (iv) providing that all job openings be 
                        advertised publicly and providing that special 
                        recruitment efforts be made to attract 
                        applicants from underrepresented religious 
                        groups;
                            (v) providing that layoff, recall, and 
                        termination procedures do not favor a 
                        particular religious group;
                            (vi) abolishing job reservations, 
                        apprenticeship restrictions, and differential 
                        employment criteria which discriminate on the 
                        basis of religion;
                            (vii) providing for the development of 
                        training programs that will prepare substantial 
                        numbers of minority employees for skilled jobs, 
                        including the expansion of existing programs 
                        and the creation of new programs to train, 
                        upgrade, and improve the skills of minority 
                        employees;
                            (viii) establishing procedures to assess, 
                        identify, and actively recruit minority 
                        employees with the potential for further 
                        advancement; and
                            (ix) providing for the appointment of a 
                        senior management staff member to be 
                        responsible for the employment efforts of the 
                        entity and, within a reasonable period of time, 
                        the implementation of the principles described 
                        in clauses (i) through (viii).
            (2) GATT 1994.--The term ``GATT 1994'' has the meaning 
        given that term in section 2(1)(B) of the Uruguay Round 
        Agreements Act (19 U.S.C. 3501(1)(B)).

Summary: Authorizes the President to enter into a free trade agreement with qualified areas of Northern Ireland and the Republic of Ireland that provides for: (1) harmonization, reduction and elimination of trade barriers. (2) prohibition of or limitations on the imposition of such barriers. And (3) elimination or reduction of duties imposed by the United States. Sets forth criteria for the duty-free treatment of qualified area products. Limits such qualified areas to areas of Northern Ireland and the Republic of Ireland contiguous to Northern Ireland suffering from the severest form of economic deprivation, with a higher than average unemployment. Requires employers to comply with the MacBride Principles of economic justice. Requires the International Trade Commission, before any reduction or elimination of duty is proclaimed with respect to an article, to advise the President of the probable economic effect of duty-free treatment on US industries producing like or directly competitive articles, and on consumers. Requires the President to consult with the Congress, according to a specified procedure, before entering into, or implementing, any free trade agreement under this Act.