# Trade Act of 2002/Division B

DIVISION B—BIPARTISAN TRADE PROMOTION AUTHORITY

## TITLE XXI—TRADE PROMOTION AUTHORITY
### SEC. 2101. SHORT TITLE AND FINDINGS.

    (a) Short Title.—
       This title may be cited as the ``Bipartisan Trade Promotion Authority Act of 2002´´.
    (b) Findings.—
       The Congress makes the following findings:
       (1) The expansion of international trade is vital to the national security of the United States. Trade is critical to the economic growth and strength of the United States and to its leadership in the world. Stable trading relationships promote security and prosperity. Trade agreements today serve the same purposes that security pacts played during the Cold War, binding nations together through a series of mutual rights and obligations. Leadership by the United States in international trade fosters open markets, democracy, and peace throughout the world.
       (2) The national security of the United States depends on its economic security, which in turn is founded upon a vibrant and growing industrial base. Trade expansion has been the engine of economic growth. Trade agreements maximize opportunities for the critical sectors and building blocks of the economy of the United States, such as information technology, telecommunications and other leading technologies, basic industries, capital equipment, medical equipment, services, agriculture, environmental technology, and intellectual property. Trade will create new opportunities for the United States and preserve the unparalleled strength of the United States in economic, political, and military affairs. The United States, secured by expanding trade and economic opportunities, will meet the challenges of the twenty-first century.
       (3) Support for continued trade expansion requires that dispute settlement procedures under international trade agreements not add to or diminish the rights and obligations provided in such agreements. Therefore—
          (A) the recent pattern of decisions by dispute settlement panels of the WTO and the Appellate Body to impose obligations and restrictions on the use of antidumping, countervailing, and safeguard measures by WTO members under the Antidumping Agreement, the Agreement on Subsidies and Countervailing Measures, and the Agreement on Safeguards has raised concerns; and
          (B) the Congress is concerned that dispute settlement panels of the WTO and the Appellate Body appropriately apply the standard of review contained in Article 17.6 of the Antidumping Agreement, to provide deference to a permissible interpretation by a WTO member of provisions of that Agreement, and to the evaluation by a WTO member of the facts where that evaluation is unbiased and objective and the establishment of the facts is proper.

### SEC. 2102. TRADE NEGOTIATING OBJECTIVES.

    (a) Overall Trade Negotiating Objectives.—The overall trade negotiating objectives of the United States for agreements subject to the provisions of section 2103 are—
       (1) to obtain more open, equitable, and reciprocal market access;
       (2) to obtain the reduction or elimination of barriers and distortions that are directly related to trade and that decrease market opportunities for United States exports or otherwise distort United States trade;
       (3) to further strengthen the system of international trading disciplines and procedures, including dispute settlement;
       (4) to foster economic growth, raise living standards, and promote full employment in the United States and to enhance the global economy;
       (5) to ensure that trade and environmental policies are mutually supportive and to seek to protect and preserve the environment and enhance the international means of doing so, while optimizing the use of the world's resources;
       (6) to promote respect for worker rights and the rights of children consistent with core labor standards of the ILO (as defined in section 2113(6)) and an understanding of the relationship between trade and worker rights;
       (7) to seek provisions in trade agreements under which parties to those agreements strive to ensure that they do not weaken or reduce the protections afforded in domestic environmental and labor laws as an encouragement for trade;
       (8) to ensure that trade agreements afford small businesses equal access to international markets, equitable trade benefits, and expanded export market opportunities, and provide for the reduction or elimination of trade barriers that disproportionately impact small businesses; and
       (9) to promote universal ratification and full compliance with ILO Convention No. 182 Concerning the Prohibition and Immediate Action for the Elimination of the Worst Forms of Child Labor.
    (b) Principal Trade Negotiating Objectives.—
       (1) Trade barriers and distortions.—The principal negotiating objectives of the United States regarding trade barriers and other trade distortions are—
          (A) to expand competitive market opportunities for United States exports and to obtain fairer and more open conditions of trade by reducing or eliminating tariff and nontariff barriers and policies and practices of foreign governments directly related to trade that decrease market opportunities for United States exports or otherwise distort United States trade; and
          (B) to obtain reciprocal tariff and nontariff barrier elimination agreements, with particular attention to those tariff categories covered in section 111(b) of the Uruguay Round Agreements Act (19 U.S.C. 3521(b)).
       (2) Trade in services.—The principal negotiating objective of the United States regarding trade in services is to reduce or eliminate barriers to international trade in services, including regulatory and other barriers that deny national treatment and market access or unreasonably restrict the establishment or operations of service suppliers.
       (3) Foreign investment.—Recognizing that United States law on the whole provides a high level of protection for investment, consistent with or greater than the level required by international law, the principal negotiating objectives of the United States regarding foreign investment are to reduce or eliminate artificial or trade-distorting barriers to foreign investment, while ensuring that foreign investors in the United States are not accorded greater substantive rights with respect to investment protections than United States investors in the United States, and to secure for investors important rights comparable to those that would be available under United States legal principles and practice, by—
          (A) reducing or eliminating exceptions to the principle of national treatment;
          (B) freeing the transfer of funds relating to investments;
          (C) reducing or eliminating performance requirements, forced technology transfers, and other unreasonable barriers to the establishment and operation of investments;
          (D) seeking to establish standards for expropriation and compensation for expropriation, consistent with United States legal principles and practice;
          (E) seeking to establish standards for fair and equitable treatment consistent with United States legal principles and practice, including the principle of due process;
          (F) providing meaningful procedures for resolving investment disputes;
          (G) seeking to improve mechanisms used to resolve disputes between an investor and a government through—
             (i) mechanisms to eliminate frivolous claims and to deter the filing of frivolous claims;
             (ii) procedures to ensure the efficient selection of arbitrators and the expeditious disposition of claims;
             (iii) procedures to enhance opportunities for public input into the formulation of government positions; and
             (iv) providing for an appellate body or similar mechanism to provide coherence to the interpretations of investment provisions in trade agreements; and
          (H) ensuring the fullest measure of transparency in the dispute settlement mechanism, to the extent consistent with the need to protect information that is classified or business confidential, by—
             (i) ensuring that all requests for dispute settlement are promptly made public;
             (ii) ensuring that—
                (I) all proceedings, submissions, findings, and decisions are promptly made public; and
                (II) all hearings are open to the public; and
             (iii) establishing a mechanism for acceptance of amicus curiae submissions from businesses, unions, and nongovernmental organizations.
       (4) Intellectual property.—The principal negotiating objectives of the United States regarding trade-related intellectual property are—
          (A) to further promote adequate and effective protection of intellectual property rights, including through—
             (i)(I) ensuring accelerated and full implementation of the Agreement on Trade-Related Aspects of Intellectual Property Rights referred to in section 101(d)(15) of the Uruguay Round Agreements Act (19 U.S.C. 3511(d)(15)), particularly with respect to meeting enforcement obligations under that agreement; and
             (II) ensuring that the provisions of any multilateral or bilateral trade agreement governing intellectual property rights that is entered into by the United States reflect a standard of protection similar to that found in United States law;
             (ii) providing strong protection for new and emerging technologies and new methods of transmitting and distributing products embodying intellectual property;
             (iii) preventing or eliminating discrimination with respect to matters affecting the availability, acquisition, scope, maintenance, use, and enforcement of intellectual property rights;
             (iv) ensuring that standards of protection and enforcement keep pace with technological developments, and in particular ensuring that rightholders have the legal and technological means to control the use of their works through the Internet and other global communication media, and to prevent the unauthorized use of their works; and
             (v) providing strong enforcement of intellectual property rights, including through accessible, expeditious, and effective civil, administrative, and criminal enforcement mechanisms;
          (B) to secure fair, equitable, and nondiscriminatory market access opportunities for United States persons that rely upon intellectual property protection; and
          (C) to respect the Declaration on the TRIPS Agreement and Public Health, adopted by the World Trade Organization at the Fourth Ministerial Conference at Doha, Qatar on November 14, 2001.
       (5) Transparency.—The principal negotiating objective of the United States with respect to transparency is to obtain wider and broader application of the principle of transparency through—
          (A) increased and more timely public access to information regarding trade issues and the activities of international trade institutions;
          (B) increased openness at the WTO and other international trade fora by increasing public access to appropriate meetings, proceedings, and submissions, including with regard to dispute settlement and investment; and
          (C) increased and more timely public access to all notifications and supporting documentation submitted by parties to the WTO.
       (6) Anti-corruption.—The principal negotiating objectives of the United States with respect to the use of money or other things of value to influence acts, decisions, or omissions of foreign governments or officials or to secure any improper advantage in a manner affecting trade are—
          (A) to obtain high standards and appropriate domestic enforcement mechanisms applicable to persons from all countries participating in the applicable trade agreement that prohibit such attempts to influence acts, decisions, or omissions of foreign governments; and
          (B) to ensure that such standards do not place United States persons at a competitive disadvantage in international trade.
       (7) Improvement of the wto and multilateral trade agreements.—The principal negotiating objectives of the United States regarding the improvement of the World Trade Organization, the Uruguay Round Agreements, and other multilateral and bilateral trade agreements are—
          (A) to achieve full implementation and extend the coverage of the World Trade Organization and such agreements to products, sectors, and conditions of trade not adequately covered; and
          (B) to expand country participation in and enhancement of the Information Technology Agreement and other trade agreements.
       (8) Regulatory practices.—The principal negotiating objectives of the United States regarding the use of government regulation or other practices by foreign governments to provide a competitive advantage to their domestic producers, service providers, or investors and thereby reduce market access for United States goods, services, and investments are—
          (A) to achieve increased transparency and opportunity for the participation of affected parties in the development of regulations;
          (B) to require that proposed regulations be based on sound science, cost-benefit analysis, risk assessment, or other objective evidence;
          (C) to establish consultative mechanisms among parties to trade agreements to promote increased transparency in developing guidelines, rules, regulations, and laws for government procurement and other regulatory regimes; and
          (D) to achieve the elimination of government measures such as price controls and reference pricing which deny full market access for United States products.
       (9) Electronic commerce.—The principal negotiating objectives of the United States with respect to electronic commerce are—
          (A) to ensure that current obligations, rules, disciplines, and commitments under the World Trade Organization apply to electronic commerce;
          (B) to ensure that—
             (i) electronically delivered goods and services receive no less favorable treatment under trade rules and commitments than like products delivered in physical form; and
             (ii) the classification of such goods and services ensures the most liberal trade treatment possible;
          (C) to ensure that governments refrain from implementing trade-related measures that impede electronic commerce;
          (D) where legitimate policy objectives require domestic regulations that affect electronic commerce, to obtain commitments that any such regulations are the least restrictive on trade, nondiscriminatory, and transparent, and promote an open market environment; and
          (E) to extend the moratorium of the World Trade Organization on duties on electronic transmissions.
       (10) Reciprocal trade in agriculture.—(A) The principal negotiating objective of the United States with respect to agriculture is to obtain competitive opportunities for United States exports of agricultural commodities in foreign markets substantially equivalent to the competitive opportunities afforded foreign exports in United States markets and to achieve fairer and more open conditions of trade in bulk, specialty crop, and value-added commodities by—
          (i) reducing or eliminating, by a date certain, tariffs or other charges that decrease market opportunities for United States exports—
             (I) giving priority to those products that are subject to significantly higher tariffs or subsidy regimes of major producing countries; and
             (II) providing reasonable adjustment periods for United States import-sensitive products, in close consultation with the Congress on such products before initiating tariff reduction negotiations;
          (ii) reducing tariffs to levels that are the same as or lower than those in the United States;
          (iii) reducing or eliminating subsidies that decrease market opportunities for United States exports or unfairly distort agriculture markets to the detriment of the United States;
          (iv) allowing the preservation of programs that support family farms and rural communities but do not distort trade;
          (v) developing disciplines for domestic support programs, so that production that is in excess of domestic food security needs is sold at world prices;
          (vi) eliminating government policies that create price-depressing surpluses;
          (vii) eliminating state trading enterprises whenever possible;
          (viii) developing, strengthening, and clarifying rules and effective dispute settlement mechanisms to eliminate practices that unfairly decrease United States market access opportunities or distort agricultural markets to the detriment of the United States, particularly with respect to import-sensitive products, including—
             (I) unfair or trade-distorting activities of state trading enterprises and other administrative mechanisms, with emphasis on requiring price transparency in the operation of state trading enterprises and such other mechanisms in order to end cross subsidization, price discrimination, and price undercutting;
             (II) unjustified trade restrictions or commercial requirements, such as labeling, that affect new technologies, including biotechnology;
             (III) unjustified sanitary or phytosanitary restrictions, including those not based on scientific principles in contravention of the Uruguay Round Agreements;
             (IV) other unjustified technical barriers to trade; and
             (V) restrictive rules in the administration of tariff rate quotas;
          (ix) eliminating practices that adversely affect trade in perishable or cyclical products, while improving import relief mechanisms to recognize the unique characteristics of perishable and cyclical agriculture;
          (x) ensuring that import relief mechanisms for perishable and cyclical agriculture are as accessible and timely to growers in the United States as those mechanisms that are used by other countries;
          (xi) taking into account whether a party to the negotiations has failed to adhere to the provisions of already existing trade agreements with the United States or has circumvented obligations under those agreements;
          (xii) taking into account whether a product is subject to market distortions by reason of a failure of a major producing country to adhere to the provisions of already existing trade agreements with the United States or by the circumvention by that country of its obligations under those agreements;
          (xiii) otherwise ensuring that countries that accede to the World Trade Organization have made meaningful market liberalization commitments in agriculture;
          (xiv) taking into account the impact that agreements covering agriculture to which the United States is a party, including the North American Free Trade Agreement, have on the United States agricultural industry;
          (xv) maintaining bona fide food assistance programs and preserving United States market development and export credit programs; and
          (xvi) striving to complete a general multilateral round in the World Trade Organization by January 1, 2005, and seeking the broadest market access possible in multilateral, regional, and bilateral negotiations, recognizing the effect that simultaneous sets of negotiations may have on United States import-sensitive commodities (including those subject to tariff-rate quotas).
       (B)(i) Before commencing negotiations with respect to agriculture, the United States Trade Representative, in consultation with the Congress, shall seek to develop a position on the treatment of seasonal and perishable agricultural products to be employed in the negotiations in order to develop an international consensus on the treatment of seasonal or perishable agricultural products in investigations relating to dumping and safeguards and in any other relevant area.
       (ii) During any negotiations on agricultural subsidies, the United States Trade Representative shall seek to establish the common base year for calculating the Aggregated Measurement of Support (as defined in the Agreement on Agriculture) as the end of each country's Uruguay Round implementation period, as reported in each country's Uruguay Round market access schedule.
       (iii) The negotiating objective provided in subparagraph (A) applies with respect to agricultural matters to be addressed in any trade agreement entered into under section 2103(a) or (b), including any trade agreement entered into under section 2103(a) or (b) that provides for accession to a trade agreement to which the United States is already a party, such as the North American Free Trade Agreement and the United States-Canada Free Trade Agreement.
       (11) Labor and the environment.—The principal negotiating objectives of the United States with respect to labor and the environment are—
          (A) to ensure that a party to a trade agreement with the United States does not fail to effectively enforce its environmental or labor laws, through a sustained or recurring course of action or inaction, in a manner affecting trade between the United States and that party after entry into force of a trade agreement between those countries;
          (B) to recognize that parties to a trade agreement retain the right to exercise discretion with respect to investigatory, prosecutorial, regulatory, and compliance matters and to make decisions regarding the allocation of resources to enforcement with respect to other labor or environmental matters determined to have higher priorities, and to recognize that a country is effectively enforcing its laws if a course of action or inaction reflects a reasonable exercise of such discretion, or results from a bona fide decision regarding the allocation of resources, and no retaliation may be authorized based on the exercise of these rights or the right to establish domestic labor standards and levels of environmental protection;
          (C) to strengthen the capacity of United States trading partners to promote respect for core labor standards (as defined in section 2113(6));
          (D) to strengthen the capacity of United States trading partners to protect the environment through the promotion of sustainable development;
          (E) to reduce or eliminate government practices or policies that unduly threaten sustainable development;
          (F) to seek market access, through the elimination of tariffs and nontariff barriers, for United States environmental technologies, goods, and services; and
          (G) to ensure that labor, environmental, health, or safety policies and practices of the parties to trade agreements with the United States do not arbitrarily or unjustifiably discriminate against United States exports or serve as disguised barriers to trade.
       (12) Dispute settlement and enforcement.—The principal negotiating objectives of the United States with respect to dispute settlement and enforcement of trade agreements are—
          (A) to seek provisions in trade agreements providing for resolution of disputes between governments under those trade agreements in an effective, timely, transparent, equitable, and reasoned manner, requiring determinations based on facts and the principles of the agreements, with the goal of increasing compliance with the agreements;
          (B) to seek to strengthen the capacity of the Trade Policy Review Mechanism of the World Trade Organization to review compliance with commitments;
          (C) to seek adherence by panels convened under the Dispute Settlement Understanding and by the Appellate Body to the standard of review applicable under the Uruguay Round Agreement involved in the dispute, including greater deference, where appropriate, to the fact-finding and technical expertise of national investigating authorities;
          (D) to seek provisions encouraging the early identification and settlement of disputes through consultation;
          (E) to seek provisions to encourage the provision of trade-expanding compensation if a party to a dispute under the agreement does not come into compliance with its obligations under the agreement;
          (F) to seek provisions to impose a penalty upon a party to a dispute under the agreement that—
             (i) encourages compliance with the obligations of the agreement;
             (ii) is appropriate to the parties, nature, subject matter, and scope of the violation; and
             (iii) has the aim of not adversely affecting parties or interests not party to the dispute while maintaining the effectiveness of the enforcement mechanism; and
          (G) to seek provisions that treat United States principal negotiating objectives equally with respect to—
             (i) the ability to resort to dispute settlement under the applicable agreement;
             (ii) the availability of equivalent dispute settlement procedures; and
             (iii) the availability of equivalent remedies.
       (13) WTO extended negotiations.—The principal negotiating objectives of the United States regarding trade in civil aircraft are those set forth in section 135(c) of the Uruguay Round Agreements Act (19 U.S.C. 3355(c)) and regarding rules of origin are the conclusion of an agreement described in section 132 of that Act (19 U.S.C. 3552).
       (14) Trade remedy laws.—The principal negotiating objectives of the United States with respect to trade remedy laws are—
          (A) to preserve the ability of the United States to enforce rigorously its trade laws, including the antidumping, countervailing duty, and safeguard laws, and avoid agreements that lessen the effectiveness of domestic and international disciplines on unfair trade, especially dumping and subsidies, or that lessen the effectiveness of domestic and international safeguard provisions, in order to ensure that United States workers, agricultural producers, and firms can compete fully on fair terms and enjoy the benefits of reciprocal trade concessions; and
          (B) to address and remedy market distortions that lead to dumping and subsidization, including overcapacity, cartelization, and market-access barriers.
       (15) Border taxes.—The principal negotiating objective of the United States regarding border taxes is to obtain a revision of the WTO rules with respect to the treatment of border adjustments for internal taxes to redress the disadvantage to countries relying primarily on direct taxes for revenue rather than indirect taxes.
       (16) Textile Negotiations.—The principal negotiating objectives of the United States with respect to trade in textiles and apparel articles are to obtain competitive opportunities for United States exports of textiles and apparel in foreign markets substantially equivalent to the competitive opportunities afforded foreign exports in United States markets and to achieve fairer and more open conditions of trade in textiles and apparel.
       (17) Worst Forms of Child Labor.—The principal negotiating objective of the United States with respect to the trade-related aspects of the worst forms of child labor are to seek commitments by parties to trade agreements to vigorously enforce their own laws prohibiting the worst forms of child labor.
    (c) Promotion of Certain Priorities.—In order to address and maintain United States competitiveness in the global economy, the President shall—
       (1) seek greater cooperation between the WTO and the ILO;
       (2) seek to establish consultative mechanisms among parties to trade agreements to strengthen the capacity of United States trading partners to promote respect for core labor standards (as defined in section 2113(6)) and to promote compliance with ILO Convention No. 182 Concerning the Prohibition and Immediate Action for the Elimination of the Worst Forms of Child Labor, and report to the Committee on Ways and Means of the House of Representatives and the Committee on Finance of the Senate on the content and operation of such mechanisms;
       (3) seek to establish consultative mechanisms among parties to trade agreements to strengthen the capacity of United States trading partners to develop and implement standards for the protection of the environment and human health based on sound science, and report to the Committee on Ways and Means of the House of Representatives and the Committee on Finance of the Senate on the content and operation of such mechanisms;
       (4) conduct environmental reviews of future trade and investment agreements, consistent with Executive Order 13141 of November 16, 1999, and its relevant guidelines, and report to the Committee on Ways and Means of the House of Representatives and the Committee on Finance of the Senate on such reviews;
       (5) review the impact of future trade agreements on United States employment, including labor markets, modeled after Executive Order 13141 to the extent appropriate in establishing procedures and criteria, report to the Committee on Ways and Means of the House of Representatives and the Committee on Finance of the Senate on such review, and make that report available to the public;
       (6) take into account other legitimate United States domestic objectives including, but not limited to, the protection of legitimate health or safety, essential security, and consumer interests and the law and regulations related thereto;
       (7) direct the Secretary of Labor to consult with any country seeking a trade agreement with the United States concerning that country's labor laws and provide technical assistance to that country if needed;
       (8) in connection with any trade negotiations entered into under this Act, submit to the Committee on Ways and Means of the House of Representatives and the Committee on Finance of the Senate a meaningful labor rights report of the country, or countries, with respect to which the President is negotiating, on a time frame determined in accordance with section 2107(b)(2)(E);
       (9) with respect to any trade agreement which the President seeks to implement under trade authorities procedures, submit to the Congress a report describing the extent to which the country or countries that are parties to the agreement have in effect laws governing exploitative child labor;
       (10) continue to promote consideration of multilateral environmental agreements and consult with parties to such agreements regarding the consistency of any such agreement that includes trade measures with existing environmental exceptions under Article XX of the GATT 1994;
       (11) report to the Committee on Ways and Means of the House of Representatives and the Committee on Finance of the Senate, not later than 12 months after the imposition of a penalty or remedy by the United States permitted by a trade agreement to which this title applies, on the effectiveness of the penalty or remedy applied under United States law in enforcing United States rights under the trade agreement; and
       (12) seek to establish consultative mechanisms among parties to trade agreements to examine the trade consequences of significant and unanticipated currency movements and to scrutinize whether a foreign government engaged in a pattern of manipulating its currency to promote a competitive advantage in international trade.
The report under paragraph (11) shall address whether the penalty or remedy was effective in changing the behavior of the targeted party and whether the penalty or remedy had any adverse impact on parties or interests not party to the dispute.
    (d) Consultations.—
       (1) Consultations with congressional advisers.—In the course of negotiations conducted under this title, the United States Trade Representative shall consult closely and on a timely basis with, and keep fully apprised of the negotiations, the Congressional Oversight Group convened under section 2107 and all committees of the House of Representatives and the Senate with jurisdiction over laws that would be affected by a trade agreement resulting from the negotiations.
       (2) Consultation before agreement initialed.—In the course of negotiations conducted under this title, the United States Trade Representative shall—
          (A) consult closely and on a timely basis (including immediately before initialing an agreement) with, and keep fully apprised of the negotiations, the congressional advisers for trade policy and negotiations appointed under section 161 of the Trade Act of 1974 (19 U.S.C. 2211), the Committee on Ways and Means of the House of Representatives, the Committee on Finance of the Senate, and the Congressional Oversight Group convened under section 2107; and
          (B) with regard to any negotiations and agreement relating to agricultural trade, also consult closely and on a timely basis (including immediately before initialing an agreement) with, and keep fully apprised of the negotiations, the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate.
    (e) Adherence to Obligations Under Uruguay Round Agreements.—In determining whether to enter into negotiations with a particular country, the President shall take into account the extent to which that country has implemented, or has accelerated the implementation of, its obligations under the Uruguay Round Agreements.

### SEC. 2103. TRADE AGREEMENTS AUTHORITY.

    (a) Agreements Regarding Tariff Barriers.—
       (1) In general.—Whenever the President determines that one or more existing duties or other import restrictions of any foreign country or the United States are unduly burdening and restricting the foreign trade of the United States and that the purposes, policies, priorities, and objectives of this title will be promoted thereby, the President—
          (A) may enter into trade agreements with foreign countries before—
             (i) June 1, 2005; or
             (ii) June 1, 2007, if trade authorities procedures are extended under subsection (c); and
          (B) may, subject to paragraphs (2) and (3), proclaim—
             (i) such modification or continuance of any existing duty,
             (ii) such continuance of existing duty-free or excise treatment, or
             (iii) such additional duties, as the President determines to be required or appropriate to carry out any such trade agreement. The President shall notify the Congress of the President's intention to enter into an agreement under this subsection.
       (2) Limitations.—No proclamation may be made under paragraph (1) 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 the enactment of this Act) to a rate of duty which is less than 50 percent of the rate of such duty that applies on such date of enactment;
          (B) reduces the rate of duty below that applicable under the Uruguay Round Agreements, on any import sensitive agricultural product; or
          (C) increases any rate of duty above the rate that applied on the date of the enactment of this Act.
       (3) Aggregate reduction; exemption from staging.—
          (A) Aggregate reduction.—Except as provided in subparagraph (B), 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 paragraph (1) shall not exceed the aggregate reduction which would have been in effect on such day if—
             (i) a reduction of 3 percent ad valorem or a reduction of one-tenth of the total reduction, whichever is greater, had taken effect on the effective date of the first reduction proclaimed under paragraph (1) to carry out such agreement with respect to such article; and
             (ii) a reduction equal to the amount applicable under clause (i) had taken effect at 1-year intervals after the effective date of such first reduction.
          (B) Exemption from staging.—No staging is required under subparagraph (A) with respect to a duty reduction that is proclaimed under paragraph (1) 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 subparagraph.
       (4) Rounding.—If the President determines that such action will simplify the computation of reductions under paragraph (3), 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 that may not be proclaimed by reason of paragraph (2) may take effect only if a provision authorizing such reduction is included within an implementing bill provided for under section 2105 and that bill is enacted into law.
       (6) Other tariff modifications.—Notwithstanding paragraphs (1)(B), (2)(A), (2)(C), and (3) through (5), and subject to the consultation and layover requirements of section 115 of the Uruguay Round Agreements Act, the President may proclaim the modification of any duty or staged rate reduction of any duty set forth in Schedule XX, as defined in section 2(5) of that Act, if the United States agrees to such modification or staged rate reduction in a negotiation for the reciprocal elimination or harmonization of duties under the auspices of the World Trade Organization.
       (7) Authority under uruguay round agreements act not affected.—Nothing in this subsection shall limit the authority provided to the President under section 111(b) of the Uruguay Round Agreements Act (19 U.S.C. 3521(b)).
    (b) Agreements Regarding Tariff and Nontariff Barriers.—
       (1) In general.—(A) Whenever the President determines that—
          (i) one or more existing duties or any other import restriction of any foreign country or the United States or any other barrier to, or other distortion of, international trade unduly burdens or restricts the foreign trade of the United States or adversely affects the United States economy, or
          (ii) the imposition of any such barrier or distortion is likely to result in such a burden, restriction, or effect,
          and that the purposes, policies, priorities, and objectives of this title will be promoted thereby, the President may enter into a trade agreement described in subparagraph (B) during the period described in subparagraph (C).
       (B) The President may enter into a trade agreement under subparagraph (A) with foreign countries providing for—
          (i) the reduction or elimination of a duty, restriction, barrier, or other distortion described in subparagraph (A); or
          (ii) the prohibition of, or limitation on the imposition of, such barrier or other distortion.
       (C) The President may enter into a trade agreement under this paragraph before—
          (i) June 1, 2005; or
          (ii) June 1, 2007, if trade authorities procedures are extended under subsection (c).
       (2) Conditions.—A trade agreement may be entered into under this subsection only if such agreement makes progress in meeting the applicable objectives described in section 2102(a) and (b) and the President satisfies the conditions set forth in section 2104.
       (3) Bills qualifying for trade authorities procedures.—(A) The provisions of section 151 of the Trade Act of 1974 (in this title referred to as ``trade authorities procedures´´) apply to a bill of either House of Congress which contains provisions described in subparagraph (B) to the same extent as such section 151 applies to implementing bills under that section. A bill to which this paragraph applies shall hereafter in this title be referred to as an ``implementing bill´´.
       (B) The provisions referred to in subparagraph (A) are—
          (i) a provision approving a trade agreement entered into under this subsection and approving the statement of administrative action, if any, proposed to implement such trade agreement; and
          (ii) if changes in existing laws or new statutory authority are required to implement such trade agreement or agreements, provisions, necessary or appropriate to implement such trade agreement or agreements, either repealing or amending existing laws or providing new statutory authority.
    (c) Extension Disapproval Process for Congressional Trade Authorities Procedures.—
       (1) In general.—Except as provided in section 2105(b)—
          (A) the trade authorities procedures apply to implementing bills submitted with respect to trade agreements entered into under subsection (b) before July 1, 2005; and
          (B) the trade authorities procedures shall be extended to implementing bills submitted with respect to trade agreements entered into under subsection (b) after June 30, 2005, and before July 1, 2007, if (and only if)—
             (i) the President requests such extension under paragraph (2); and
             (ii) neither House of the Congress adopts an extension disapproval resolution under paragraph (5) before June 1, 2005.
       (2) Report to congress by the president.— If the President is of the opinion that the trade authorities procedures should be extended to implementing bills described in paragraph (1)(B), the President shall submit to the Congress, not later than March 1, 2005, a written report that contains a request for such extension, together with—
          (A) a description of all trade agreements that have been negotiated under subsection (b) and the anticipated schedule for submitting such agreements to the Congress for approval;
          (B) a description of the progress that has been made in negotiations to achieve the purposes, policies, priorities, and objectives of this title, and a statement that such progress justifies the continuation of negotiations; and
          (C) a statement of the reasons why the extension is needed to complete the negotiations.
       (3) Other reports to congress.— (A) Report by the advisory committee.—The President shall promptly inform the Advisory Committee for Trade Policy and Negotiations established under section 135 of the Trade Act of 1974 (19 U.S.C. 2155) of the President's decision to submit a report to the Congress under paragraph (2). The Advisory Committee shall submit to the Congress as soon as practicable, but not later than May 1, 2005, a written report that contains—
             (i) its views regarding the progress that has been made in negotiations to achieve the purposes, policies, priorities, and objectives of this title; and
             (ii) a statement of its views, and the reasons therefor, regarding whether the extension requested under paragraph (2) should be approved or disapproved.
          (B) Report by itc.—The President shall promptly inform the International Trade Commission of the President's decision to submit a report to the Congress under paragraph (2). The International Trade Commission shall submit to the Congress as soon as practicable, but not later than May 1, 2005, a written report that contains a review and analysis of the economic impact on the United States of all trade agreements implemented between the date of enactment of this Act and the date on which the President decides to seek an extension requested under paragraph (2).
       (4) Status of reports.—The reports submitted to the Congress under paragraphs (2) and (3), or any portion of such reports, may be classified to the extent the President determines appropriate.
       (5) Extension disapproval resolutions.—(A) For purposes of paragraph (1), the term ``extension disapproval resolution´´ means a resolution of either House of the Congress, the sole matter after the resolving clause of which is as follows: ``That the ____ disapproves the request of the President for the extension, under section 2103(c)(1)(B)(i) of the Bipartisan Trade Promotion Authority Act of 2002, of the trade authorities procedures under that Act to any implementing bill submitted with respect to any trade agreement entered into under section 2103(b) of that Act after June 30, 2005.´´, with the blank space being filled with the name of the resolving House of the Congress.
       (B) Extension disapproval resolutions—
          (i) may be introduced in either House of the Congress by any member of such House; and
          (ii) shall be referred, in the House of Representatives, to the Committee on Ways and Means and, in addition, to the Committee on Rules.
       (C) The provisions of section 152(d) and (e) of the Trade Act of 1974 (19 U.S.C. 2192(d) and (e)) (relating to the floor consideration of certain resolutions in the House and Senate) apply to extension disapproval resolutions.
       (D) It is not in order for—
          (i) the Senate to consider any extension disapproval resolution not reported by the Committee on Finance;
          (ii) the House of Representatives to consider any extension disapproval resolution not reported by the Committee on Ways and Means and, in addition, by the Committee on Rules; or
          (iii) either House of the Congress to consider an extension disapproval resolution after June 30, 2005.
    (d) Commencement of Negotiations.—In order to contribute to the continued economic expansion of the United States, the President shall commence negotiations covering tariff and nontariff barriers affecting any industry, product, or service sector, and expand existing sectoral agreements to countries that are not parties to those agreements, in cases where the President determines that such negotiations are feasible and timely and would benefit the United States. Such sectors include agriculture, commercial services, intellectual property rights, industrial and capital goods, government procurement, information technology products, environmental technology and services, medical equipment and services, civil aircraft, and infrastructure products. In so doing, the President shall take into account all of the principal negotiating objectives set forth in section 2102(b).

### SEC. 2104. CONSULTATIONS AND ASSESSMENT.

    (a) Notice and Consultation Before Negotiation.—The President, with respect to any agreement that is subject to the provisions of section 2103(b), shall—
       (1) provide, at least 90 calendar days before initiating negotiations, written notice to the Congress of the President's intention to enter into the negotiations and set forth therein the date the President intends to initiate such negotiations, the specific United States objectives for the negotiations, and whether the President intends to seek an agreement, or changes to an existing agreement;
       (2) before and after submission of the notice, consult regarding the negotiations with the Committee on Finance of the Senate and the Committee on Ways and Means of the House of Representatives, such other committees of the House and Senate as the President deems appropriate, and the Congressional Oversight group convened under section 2107; and
       (3) upon the request of a majority of the members of the Congressional Oversight Group under section 2107(c), meet with the Congressional Oversight Group before initiating the negotiations or at any other time concerning the negotiations.
    (b) Negotiations Regarding Agriculture.—
       (1) In general.—Before initiating or continuing negotiations the subject matter of which is directly related to the subject matter under section 2102(b)(10)(A)(i) with any country, the President shall assess whether United States tariffs on agricultural products that were bound under the Uruguay Round Agreements are lower than the tariffs bound by that country. In addition, the President shall consider whether the tariff levels bound and applied throughout the world with respect to imports from the United States are higher than United States tariffs and whether the negotiation provides an opportunity to address any such disparity. The President shall consult with the Committee on Ways and Means and the Committee on Agriculture of the House of Representatives and the Committee on Finance and the Committee on Agriculture, Nutrition, and Forestry of the Senate concerning the results of the assessment, whether it is appropriate for the United States to agree to further tariff reductions based on the conclusions reached in the assessment, and how all applicable negotiating objectives will be met.
       (2) Special consultations on import sensitive products.—(A) Before initiating negotiations with regard to agriculture, and, with respect to the Free Trade Area for the Americas and negotiations with regard to agriculture under the auspices of the World Trade Organization, as soon as practicable after the enactment of this Act, the United States Trade Representative shall—
          (i) identify those agricultural products subject to tariff-rate quotas on the date of enactment of this Act, and agricultural products subject to tariff reductions by the United States as a result of the Uruguay Round Agreements, for which the rate of duty was reduced on January 1, 1995, to a rate which was not less than 97.5 percent of the rate of duty that applied to such article on December 31, 1994;
          (ii) consult with the Committee on Ways and Means and the Committee on Agriculture of the House of Representatives and the Committee on Finance and the Committee on Agriculture, Nutrition, and Forestry of the Senate concerning—
             (I) whether any further tariff reductions on the products identified under clause (i) should be appropriate, taking into account the impact of any such tariff reduction on the United States industry producing the product concerned;
             (II) whether the products so identified face unjustified sanitary or phytosanitary restrictions, including those not based on scientific principles in contravention of the Uruguay Round Agreements; and
             (III) whether the countries participating in the negotiations maintain export subsidies or other programs, policies, or practices that distort world trade in such products and the impact of such programs, policies, and practices on United States producers of the products;
          (iii) request that the International Trade Commission prepare an assessment of the probable economic effects of any such tariff reduction on the United States industry producing the product concerned and on the United States economy as a whole; and
          (iv) upon complying with clauses (i), (ii), and (iii), notify the Committee on Ways and Means and the Committee on Agriculture of the House of Representatives and the Committee on Finance and the Committee on Agriculture, Nutrition, and Forestry of the Senate of those products identified under clause (i) for which the Trade Representative intends to seek tariff liberalization in the negotiations and the reasons for seeking such tariff liberalization.
       (B) If, after negotiations described in subparagraph (A) are commenced—
          (i) the United States Trade Representative identifies any additional agricultural product described in subparagraph (A)(i) for tariff reductions which were not the subject of a notification under subparagraph (A)(iv), or
          (ii) any additional agricultural product described in subparagraph (A)(i) is the subject of a request for tariff reductions by a party to the negotiations,
          the Trade Representative shall, as soon as practicable, notify the committees referred to in subparagraph (A)(iv) of those products and the reasons for seeking such tariff reductions.
       (3) Negotiations regarding the fishing industry.—Before initiating, or continuing, negotiations which directly relate to fish or shellfish trade with any country, the President shall consult with the Committee on Ways and Means and the Committee on Resources of the House of Representatives, and the Committee on Finance and the Committee on Commerce, Science, and Transportation of the Senate, and shall keep the Committees apprised of negotiations on an ongoing and timely basis.
    (c) Negotiations Regarding Textiles.—Before initiating or continuing negotiations the subject matter of which is directly related to textiles and apparel products with any country, the President shall assess whether United States tariffs on textile and apparel products that were bound under the Uruguay Round Agreements are lower than the tariffs bound by that country and whether the negotiation provides an opportunity to address any such disparity. The President shall consult with the Committee on Ways and Means of the House of Representatives and the Committee on Finance of the Senate concerning the results of the assessment, whether it is appropriate for the United States to agree to further tariff reductions based on the conclusions reached in the assessment, and how all applicable negotiating objectives will be met.
    (d) Consultation With Congress Before Agreements Entered Into.—
       (1) Consultation.—Before entering into any trade agreement under section 2103(b), the President shall consult with—
          (A) the Committee on Ways and Means of the House of Representatives and the Committee on Finance of the Senate;
          (B) each other committee of the House 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; and
          (C) the Congressional Oversight Group convened under section 2107.
       (2) Scope.—The consultation described in paragraph (1) shall include consultation with respect to—
          (A) the nature of the agreement;
          (B) how and to what extent the agreement will achieve the applicable purposes, policies, priorities, and objectives of this title; and
          (C) the implementation of the agreement under section 2105, including the general effect of the agreement on existing laws.
       (3) Report regarding united states trade remedy laws.—
          (A) Changes in certain trade laws.—The President, at least 180 calendar days before the day on which the President enters into a trade agreement under section 2103(b), shall report to the Committee on Ways and Means of the House of Representatives and the Committee on Finance of the Senate—
             (i) the range of proposals advanced in the negotiations with respect to that agreement, that may be in the final agreement, and that could require amendments to title VII of the Tariff Act of 1930 or to chapter 1 of title II of the Trade Act of 1974; and
             (ii) how these proposals relate to the objectives described in section 2102(b)(14).
          (B) Certain agreements.—With respect to a trade agreement entered into with Chile or Singapore, the report referred to in subparagraph (A) shall be submitted by the President at least 90 calendar days before the day on which the President enters into that agreement.
          (C) Resolutions.—(i) At any time after the transmission of the report under subparagraph (A), if a resolution is introduced with respect to that report in either House of Congress, the procedures set forth in clauses (iii) through (vi) shall apply to that resolution if—
             (I) no other resolution with respect to that report has previously been reported in that House of Congress by the Committee on Ways and Means or the Committee on Finance, as the case may be, pursuant to those procedures; and
             (II) no procedural disapproval resolution under section 2105(b) introduced with respect to a trade agreement entered into pursuant to the negotiations to which the report under subparagraph (A) relates has previously been reported in that House of Congress by the Committee on Ways and Means or the Committee on Finance, as the case may be.
          (ii) For purposes of this subparagraph, the term ``resolution´´ means only a resolution of either House of Congress, the matter after the resolving clause of which is as follows: ``That the ____ finds that the proposed changes to United States trade remedy laws contained in the report of the President transmitted to the Congress on ____ under section 2104(d)(3) of the Bipartisan Trade Promotion Authority Act of 2002 with respect to ____, are inconsistent with the negotiating objectives described in section 2102(b)(14) of that Act.´´, with the first blank space being filled with the name of the resolving House of Congress, the second blank space being filled with the appropriate date of the report, and the third blank space being filled with the name of the country or countries involved.
          (iii) Resolutions in the House of Representatives—
             (I) may be introduced by any Member of the House;
             (II) shall be referred to the Committee on Ways and Means and, in addition, to the Committee on Rules; and
             (III) may not be amended by either Committee.
          (iv) Resolutions in the Senate—
             (I) may be introduced by any Member of the Senate;
             (II) shall be referred to the Committee on Finance; and
             (III) may not be amended.
          (iv) It is not in order for the House of Representatives to consider any resolution that is not reported by the Committee on Ways and Means and, in addition, by the Committee on Rules.
          (v) It is not in order for the Senate to consider any resolution that is not reported by the Committee on Finance.
          (vi) The provisions of section 152(d) and (e) of the Trade Act of 1974 (19 U.S.C. 2192(d) and (e)) (relating to floor consideration of certain resolutions in the House and Senate) shall apply to resolutions.
    (e) Advisory Committee Reports.—The report required under section 135(e)(1) of the Trade Act of 1974 regarding any trade agreement entered into under section 2103(a) or (b) of this Act shall be provided to the President, the Congress, and the United States Trade Representative not later than 30 days after the date on which the President notifies the Congress under section 2103(a)(1) or 2105(a)(1)(A) of the President's intention to enter into the agreement.
    (f) ITC Assessment.—
       (1) In general.—The President, at least 90 calendar days before the day on which the President enters into a trade agreement under section 2103(b), shall provide the International Trade Commission (referred to in this subsection as ``the Commission´´) with the details of the agreement as it exists at that time and request the Commission to prepare and submit an assessment of the agreement as described in paragraph (2). Between the time the President makes the request under this paragraph and the time the Commission submits the assessment, the President shall keep the Commission current with respect to the details of the agreement.
       (2) ITC assessment.—Not later than 90 calendar days after the President enters into the agreement, the Commission shall submit to the President and the Congress a report assessing the likely impact of the agreement on the United States economy as a whole and on specific industry sectors, including the impact the agreement will have on the gross domestic product, exports and imports, aggregate employment and employment opportunities, the production, employment, and competitive position of industries likely to be significantly affected by the agreement, and the interests of United States consumers.
       (3) Review of empirical literature.—In preparing the assessment, the Commission shall review available economic assessments regarding the agreement, including literature regarding any substantially equivalent proposed agreement, and shall provide in its assessment a description of the analyses used and conclusions drawn in such literature, and a discussion of areas of consensus and divergence between the various analyses and conclusions, including those of the Commission regarding the agreement.

### SEC. 2105. IMPLEMENTATION OF TRADE AGREEMENTS.

    (a) In General.—
       (1) Notification and submission.—Any agreement entered into under section 2103(b) shall enter into force with respect to the United States if (and only if)—
          (A) 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;
          (B) within 60 days after entering into the agreement, the President submits to the 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;
          (C) after entering into the agreement, the President submits to the Congress, on a day on which both Houses of Congress are in session, a copy of the final legal text of the agreement, together with—
             (i) a draft of an implementing bill described in section 2103(b)(3);
             (ii) a statement of any administrative action proposed to implement the trade agreement; and
             (iii) the supporting information described in paragraph (2); and
          (D) the implementing bill is enacted into law.
       (2) Supporting information.—The supporting information required under paragraph (1)(C)(iii) consists of—
          (A) an explanation as to how the implementing bill and proposed administrative action will change or affect existing law; and
          (B) a statement—
             (i) asserting that the agreement makes progress in achieving the applicable purposes, policies, priorities, and objectives of this title; and
             (ii) setting forth the reasons of the President regarding—
                (I) how and to what extent the agreement makes progress in achieving the applicable purposes, policies, and objectives referred to in clause (i);
                (II) whether and how the agreement changes provisions of an agreement previously negotiated;
                (III) how the agreement serves the interests of United States commerce;
                (IV) how the implementing bill meets the standards set forth in section 2103(b)(3); and
                (V) how and to what extent the agreement makes progress in achieving the applicable purposes, policies, and objectives referred to in section 2102(c) regarding the promotion of certain priorities.
       (3) Reciprocal benefits.—In order to ensure that a foreign country that is not a party to a trade agreement entered into under section 2103(b) does not receive benefits under the agreement unless the country is also subject to the obligations under the agreement, the implementing bill submitted with respect to the agreement shall provide that the benefits and obligations under the agreement apply only to the parties to the agreement, if such application is consistent with the terms of the agreement. The implementing bill may also provide that the benefits and obligations under the agreement do not apply uniformly to all parties to the agreement, if such application is consistent with the terms of the agreement.
       (4) Disclosure of commitments.—Any agreement or other understanding with a foreign government or governments (whether oral or in writing) that—
          (A) relates to a trade agreement with respect to which the Congress enacts an implementing bill under trade authorities procedures, and
          (B) is not disclosed to the Congress before an implementing bill with respect to that agreement is introduced in either House of Congress, shall not be considered to be part of the agreement approved by the Congress and shall have no force and effect under United States law or in any dispute settlement body.
    (b) Limitations on Trade Authorities Procedures.—
       (1) For lack of notice or consultations.—
          (A) In general.—The trade authorities procedures shall not apply to any implementing bill submitted with respect to a trade agreement or trade agreements entered into under section 2103(b) if during the 60-day period beginning on the date that one House of Congress agrees to a procedural disapproval resolution for lack of notice or consultations with respect to such trade agreement or agreements, the other House separately agrees to a procedural disapproval resolution with respect to such trade agreement or agreements.
          (B) Procedural disapproval resolution.—(i) For purposes of this paragraph, the term ``procedural disapproval resolution´´ means a resolution of either House of Congress, the sole matter after the resolving clause of which is as follows: ``That the President has failed or refused to notify or consult in accordance with the Bipartisan Trade Promotion Authority Act of 2002 on negotiations with respect to ____________ and, therefore, the trade authorities procedures under that Act shall not apply to any implementing bill submitted with respect to such trade agreement or agreements.´´, with the blank space being filled with a description of the trade agreement or agreements with respect to which the President is considered to have failed or refused to notify or consult.
          (ii) For purposes of clause (i), the President has ``failed or refused to notify or consult in accordance with the Bipartisan Trade Promotion Authority Act of 2002´´ on negotiations with respect to a trade agreement or trade agreements if—
             (I) the President has failed or refused to consult (as the case may be) in accordance with section 2104 or 2105 with respect to the negotiations, agreement, or agreements;
             (II) guidelines under section 2107(b) have not been developed or met with respect to the negotiations, agreement, or agreements;
             (III) the President has not met with the Congressional Oversight Group pursuant to a request made under section 2107(c) with respect to the negotiations, agreement, or agreements; or
             (IV) the agreement or agreements fail to make progress in achieving the purposes, policies, priorities, and objectives of this title.
       (2) Procedures for considering resolutions.—(A) Procedural disapproval resolutions—
          (i) in the House of Representatives—
             (I) may be introduced by any Member of the House;
             (II) shall be referred to the Committee on Ways and Means and, in addition, to the Committee on Rules; and
             (III) may not be amended by either Committee; and
          (ii) in the Senate—
             (I) may be introduced by any Member of the Senate;
             (II) shall be referred to the Committee on Finance; and
             (III) may not be amended.
       (B) The provisions of section 152(d) and (e) of the Trade Act of 1974 (19 U.S.C. 2192(d) and (e)) (relating to the floor consideration of certain resolutions in the House and Senate) apply to a procedural disapproval resolution introduced with respect to a trade agreement if no other procedural disapproval resolution with respect to that trade agreement has previously been reported in that House of Congress by the Committee on Ways and Means or the Committee on Finance, as the case may be, and if no resolution described in section 2104(d)(3)(C)(ii) with respect to that trade agreement has been reported in that House of Congress by the Committee on Ways and Means or the Committee on Finance, as the case may be, pursuant to the procedures set forth in clauses (iii) through (vi) of such section 2104(d)(3)(C).
       (C) It is not in order for the House of Representatives to consider any procedural disapproval resolution not reported by the Committee on Ways and Means and, in addition, by the Committee on Rules.
       (D) It is not in order for the Senate to consider any procedural disapproval resolution not reported by the Committee on Finance.
       (3) For failure to meet other requirements.—
          Not later than December 31, 2002, the Secretary of Commerce, in consultation with the Secretary of State, the Secretary of the Treasury, the Attorney General, and the United States Trade Representative, shall transmit to the Congress a report setting forth the strategy of the executive branch to address concerns of the Congress regarding whether dispute settlement panels and the Appellate Body of the WTO have added to obligations, or diminished rights, of the United States, as described in section 2101(b)(3). Trade authorities procedures shall not apply to any implementing bill with respect to an agreement negotiated under the auspices of the WTO unless the Secretary of Commerce has issued such report in a timely manner.
    (c) Rules of House of Representatives and Senate.—Subsection (b) of this section, section 2103(c), aand section 2104(d)(3)(C) are enacted by the Congress—
       (1) as an exercise of the rulemaking power of the House of Representatives and the Senate, respectively, and as such are deemed a part of the rules of each House, respectively, and such procedures supersede other rules only to the extent that they are inconsistent with such other rules; and
       (2) with the full recognition of the constitutional right of either House to change the rules (so far as relating to the procedures of that House) at any time, in the same manner, and to the same extent as any other rule of that House.

### SEC. 2106. TREATMENT OF CERTAIN TRADE AGREEMENTS FOR WHICH NEGOTIATIONS HAVE ALREADY BEGUN.

    (a) Certain Agreements.—Notwithstanding the prenegotiation notification and consultation requirement described in section 2104(a), if an agreement to which section 2103(b) applies—
       (1) is entered into under the auspices of the World Trade Organization,
       (2) is entered into with Chile,
       (3) is entered into with Singapore, or
       (4) establishes a Free Trade Area for the Americas,
and results from negotiations that were commenced before the date of the enactment of this Act, subsection (b) shall apply.
    (b) Treatment of Agreements.—In the case of any agreement to which subsection (a) applies—
       (1) the applicability of the trade authorities procedures to implementing bills shall be determined without regard to the requirements of section 2104(a) (relating only to 90 days notice prior to initiating negotiations), and any procedural disapproval resolution under section 2105(b)(1)(B) shall not be in order on the basis of a failure or refusal to comply with the provisions of section 2104(a); and
       (2) the President shall, as soon as feasible after the enactment of this Act—
          (A) notify the Congress of the negotiations described in subsection (a), the specific United States objectives in the negotiations, and whether the President is seeking a new agreement or changes to an existing agreement; and
          (B) before and after submission of the notice, consult regarding the negotiations with the committees referred to in section 2104(a)(2) and the Congressional Oversight Group convened under section 2107.

### SEC. 2107. CONGRESSIONAL OVERSIGHT GROUP.

    (a) Members and Functions.—
       (1) In general.—By not later than 60 days after the date of the enactment of this Act, and not later than 30 days after the convening of each Congress, the chairman of the Committee on Ways and Means of the House of Representatives and the chairman of the Committee on Finance of the Senate shall convene the Congressional Oversight Group.
       (2) Membership from the house.—In each Congress, the Congressional Oversight Group shall be comprised of the following Members of the House of Representatives:
          (A) The chairman and ranking member of the Committee on Ways and Means, and 3 additional members of such Committee (not more than 2 of whom are members of the same political party).
          (B) The chairman and ranking member, or their designees, of the committees of the House of Representatives which would have, under the Rules of the House of Representatives, jurisdiction over provisions of law affected by a trade agreement negotiations for which are conducted at any time during that Congress and to which this title would apply.
       (3) Membership from the senate.—In each Congress, the Congressional Oversight Group shall also be comprised of the following members of the Senate:
          (A) The chairman and ranking member of the Committee on Finance and 3 additional members of such Committee (not more than 2 of whom are members of the same political party).
          (B) The chairman and ranking member, or their designees, of the committees of the Senate which would have, under the Rules of the Senate, jurisdiction over provisions of law affected by a trade agreement negotiations for which are conducted at any time during that Congress and to which this title would apply.
       (4) Accreditation.—Each member of the Congressional Oversight Group described in paragraph (2)(A) and (3)(A) shall be accredited by the United States Trade Representative on behalf of the President as an official adviser to the United States delegation in negotiations for any trade agreement to which this title applies. Each member of the Congressional Oversight Group described in paragraph (2)(B) and (3)(B) shall be accredited by the United States Trade Representative on behalf of the President as an official adviser to the United States delegation in the negotiations by reason of which the member is in the Congressional Oversight Group. The Congressional Oversight Group shall consult with and provide advice to the Trade Representative regarding the formulation of specific objectives, negotiating strategies and positions, the development of the applicable trade agreement, and compliance and enforcement of the negotiated commitments under the trade agreement.
       (5) Chair.—The Congressional Oversight Group shall be chaired by the Chairman of the Committee on Ways and Means of the House of Representatives and the Chairman of the Committee on Finance of the Senate.
    (b) Guidelines.—
       (1) Purpose and revision.—The United States Trade Representative, in consultation with the chairmen and ranking minority members of the Committee on Ways and Means of the House of Representatives and the Committee on Finance of the Senate—
          (A) shall, within 120 days after the date of the enactment of this Act, develop written guidelines to facilitate the useful and timely exchange of information between the Trade Representative and the Congressional Oversight Group convened under this section; and
          (B) may make such revisions to the guidelines as may be necessary from time to time.
       (2) Content.—The guidelines developed under paragraph (1) shall provide for, among other things—
          (A) regular, detailed briefings of the Congressional Oversight Group regarding negotiating objectives, including the promotion of certain priorities referred to in section 2102(c), and positions and the status of the applicable negotiations, beginning as soon as practicable after the Congressional Oversight Group is convened, with more frequent briefings as trade negotiations enter the final stage;
          (B) access by members of the Congressional Oversight Group, and staff with proper security clearances, to pertinent documents relating to the negotiations, including classified materials;
          (C) the closest practicable coordination between the Trade Representative and the Congressional Oversight Group at all critical periods during the negotiations, including at negotiation sites;
          (D) after the applicable trade agreement is concluded, consultation regarding ongoing compliance and enforcement of negotiated commitments under the trade agreement; and
          (E) the time frame for submitting the report required under section 2102(c)(8).
    (c) Request for Meeting.—Upon the request of a majority of the Congressional Oversight Group, the President shall meet with the Congressional Oversight Group before initiating negotiations with respect to a trade agreement, or at any other time concerning the negotiations.

### SEC. 2108. ADDITIONAL IMPLEMENTATION AND ENFORCEMENT REQUIREMENTS.

    (a) In General.—At the time the President submits to the Congress the final text of an agreement pursuant to section 2105(a)(1)(C), the President shall also submit a plan for implementing and enforcing the agreement. The implementation and enforcement plan shall include the following:
       (1) Border personnel requirements.—A description of additional personnel required at border entry points, including a list of additional customs and agricultural inspectors.
       (2) Agency staffing requirements.—A description of additional personnel required by Federal agencies responsible for monitoring and implementing the trade agreement, including personnel required by the Office of the United States Trade Representative, the Department of Commerce, the Department of Agriculture (including additional personnel required to implement sanitary and phytosanitary measures in order to obtain market access for United States exports), the Department of the Treasury, and such other agencies as may be necessary.
       (3) Customs infrastructure requirements.—A description of the additional equipment and facilities needed by the United States Customs Service.
       (4) Impact on state and local governments.—A description of the impact the trade agreement will have on State and local governments as a result of increases in trade.
       (5) Cost analysis.—An analysis of the costs associated with each of the items listed in paragraphs (1) through (4).
    (b) Budget Submission.—The President shall include a request for the resources necessary to support the plan described in subsection (a) in the first budget that the President submits to the Congress after the submission of the plan.

### SEC. 2109. COMMITTEE STAFF.

    The grant of trade promotion authority under this title is likely to increase the activities of the primary committees of jurisdiction in the area of international trade. In addition, the creation of the Congressional Oversight Group under section 2107 will increase the participation of a broader number of Members of Congress in the formulation of United States trade policy and oversight of the international trade agenda for the United States. The primary committees of jurisdiction should have adequate staff to accommodate these increases in activities.

### SEC. 2110. CONFORMING AMENDMENTS.

    (a) In General.—Title I of the Trade Act of 1974 (19 U.S.C. 2111 et seq.) is amended as follows:
       (1) Implementing bill.—
          (A) Section 151(b)(1) (19 U.S.C. 2191(b)(1)) is amended by striking ``section 1103(a)(1) of the Omnibus Trade and Competitiveness Act of 1988, or section 282 of the Uruguay Round Agreements Act´´ and inserting ``section 282 of the Uruguay Round Agreements Act, or section 2105(a)(1) of the Bipartisan Trade Promotion Authority Act of 2002´´.
          (B) Section 151(c)(1) (19 U.S.C. 2191(c)(1)) is amended by striking ``or section 282 of the Uruguay Round Agreements Act´´ and inserting ``, section 282 of the Uruguay Round Agreements Act, or section 2105(a)(1) of the Bipartisan Trade Promotion Authority Act of 2002´´.
       (2) Advice from international trade commission.—Section 131 (19 U.S.C. 2151) is amended—
          (A) in subsection (a)—
             (i) in paragraph (1), by striking ``section 123 of this Act or section 1102 (a) or (c) of the Omnibus Trade and Competitiveness Act of 1988,´´ and inserting ``section 123 of this Act or section 2103(a) or (b) of the Bipartisan Trade Promotion Authority Act of 2002,´´; and
             (ii) in paragraph (2), by striking ``section 1102 (b) or (c) of the Omnibus Trade and Competitiveness Act of 1988´´ and inserting ``section 2103(b) of the Bipartisan Trade Promotion Authority Act of 2002´´;
          (B) in subsection (b), by striking ``section 1102(a)(3)(A)´´ and inserting ``section 2103(a)(3)(A) of the Bipartisan Trade Promotion Authority Act of 2002´´; and
          (C) in subsection (c), by striking ``section 1102 of the Omnibus Trade and Competitiveness Act of 1988,´´ and inserting ``section 2103 of the Bipartisan Trade Promotion Authority Act of 2002,´´.
       (3) Hearings and advice.—Sections 132, 133(a), and 134(a) (19 U.S.C. 2152, 2153(a), and 2154(a)) are each amended by striking ``section 1102 of the Omnibus Trade and Competitiveness Act of 1988,´´ each place it appears and inserting ``section 2103 of the Bipartisan Trade Promotion Authority Act of 2002,´´.
       (4) Prerequisites for offers.—Section 134(b) (19 U.S.C. 2154(b)) is amended by striking ``section 1102 of the Omnibus Trade and Competitiveness Act of 1988´´ and inserting ``section 2103 of the Bipartisan Trade Promotion Authority Act of 2002´´.
       (5) Advice from private and public sectors.—Section 135 (19 U.S.C. 2155) is amended—
          (A) in subsection (a)(1)(A), by striking ``section 1102 of the Omnibus Trade and Competitiveness Act of 1988´´ and inserting ``section 2103 of the Bipartisan Trade Promotion Authority Act of 2002´´;
          (B) in subsection (e)(1)—
             (i) by striking ``section 1102 of the Omnibus Trade and Competitiveness Act of 1988´´ each place it appears and inserting ``section 2103 of the Bipartisan Trade Promotion Authority Act of 2002´´; and
             (ii) by striking ``section 1103(a)(1)(A) of such Act of 1988´´ and inserting ``section 2105(a)(1)(A) of the Bipartisan Trade Promotion Authority Act of 2002´´; and
          (C) in subsection (e)(2), by striking ``section 1101 of the Omnibus Trade and Competitiveness Act of 1988´´ and inserting ``section 2102 of the Bipartisan Trade Promotion Authority Act of 2002´´.
       (6) Transmission of agreements to congress.—Section 162(a) (19 U.S.C. 2212(a)) is amended by striking ``or under section 1102 of the Omnibus Trade and Competitiveness Act of 1988´´ and inserting ``or under section 2103 of the Bipartisan Trade Promotion Authority Act of 2002´´.
    (b) Application of Certain Provisions.—For purposes of applying sections 125, 126, and 127 of the Trade Act of 1974 (19 U.S.C. 2135, 2136(a), and 2137)—
       (1) any trade agreement entered into under section 2103 shall be treated as an agreement entered into under section 101 or 102, as appropriate, of the Trade Act of 1974 (19 U.S.C. 2111 or 2112); and
       (2) any proclamation or Executive order issued pursuant to a trade agreement entered into under section 2103 shall be treated as a proclamation or Executive order issued pursuant to a trade agreement entered into under section 102 of the Trade Act of 1974.

### SEC. 2111. REPORT ON IMPACT OF TRADE PROMOTION AUTHORITY.

    (a) In General.—Not later than 1 year after the date of enactment of this Act, the International Trade Commission shall report to the Committee on Finance of the Senate and the Committee on Ways and Means of the House of Representatives regarding the economic impact on the United States of the trade agreements described in subsection (b).
    (b) Agreements.—The trade agreements described in this subsection are the following:
       (1) The United States-Israel Free Trade Agreement.
       (2) The United States-Canada Free Trade Agreement.
       (3) The North American Free Trade Agreement.
       (4) The Uruguay Round Agreements.
       (5) The Tokyo Round of Multilateral Trade Negotiations.

### SEC. 2112. INTERESTS OF SMALL BUSINESS.

    The Assistant United States Trade Representative for Industry and Telecommunications shall be responsible for ensuring that the interests of small business are considered in all trade negotiations in accordance with the objective described in section 2102(a)(8). It is the sense of the Congress that the small business functions should be reflected in the title of the Assistant United States Trade Representative assigned the responsibility for small business.

### SEC. 2113. DEFINITIONS.

    In this title:
       (1) Agreement on agriculture.—The term ``Agreement on Agriculture´´ means the agreement referred to in section 101(d)(2) of the Uruguay Round Agreements Act (19 U.S.C. 3511(d)(2)).
       (2) Agreement on safeguards.—The term ``Agreement on Safeguards means the agreement referred to in section 101(d)(12) of the Uruguay Round Agreements Act (19 U.S.C. 3511(d)(12)).
       (2) Agreement on subsidies and countervailing measures.—The term ``Agreement on Subsidies and Countervailing Measures´´ means the agreement referred to in section 101(d)(13) of the Uruguay Round Agreements Act (19 U.S.C. 3511(d)(13)).
       (4) Antidumping agreement.—The term ``Antidumping Agreement`` means the Agreement on Implementation of Article VI of the General Agreement on Tariffs and Trade 1994 referred to in section 101(d)(7) of the Uruguay Round Agreements Act (19 U.S.C. 3511(d)(7)).
       (5) Appellate body.—The term ``Appellate Body´´ means the Appellate Body established under Article 17.1 of the Dispute Settlement Understanding.
       (6) Core labor standards.—The term ``core labor standards´´ means—
          (A) the right of association;
          (B) the right to organize and bargain collectively;
          (C) a prohibition on the use of any form of forced or compulsory labor;
          (D) a minimum age for the employment of children; and
          (E) acceptable conditions of work with respect to minimum wages, hours of work, and occupational safety and health.
       (7) Dispute settlement understanding.—The term ``Dispute Settlement Understanding´´ means the Understanding on Rules and Procedures Governing the Settlement of Disputes referred to in section 101(d)(16) of the Uruguay Round Agreements Act.
       (8) GATT 1994.—The term ``GATT 1994´´ has the meaning given that term in section 2 of the Uruguay Round Agreements Act (19 U.S.C. 3501).
       (9) ILO.—The term ``ILO´´ means the International Labor Organization.
       (10) Import sensitive agricultural product.—The term ``import sensitive agricultural product´´ means an agricultural product—
          (A) with respect to which, as a result of the Uruguay Round Agreements the rate of duty was the subject of tariff reductions by the United States and, pursuant to such Agreements, was reduced on January 1, 1995, to a rate that was not less than 97.5 percent of the rate of duty that applied to such article on December 31, 1994; or
          (B) which was subject to a tariff-rate quota on the date of the enactment of this Act.
       (11) United states person.—The term ``United States person´´ means—
          (A) a United States citizen;
          (B) a partnership, corporation, or other legal entity organized under the laws of the United States; and
          (C) a partnership, corporation, or other legal entity that is organized under the laws of a foreign country and is controlled by entities described in subparagraph (B) or United States citizens, or both.
       (12) Uruguay round agreements.—The term ``Uruguay Round Agreements´´ has the meaning given that term in section 2(7) of the Uruguay Round Agreements Act (19 U.S.C. 3501(7)).
       (13) World trade organization; wto.—The terms ``World Trade Organization´´ and ``WTO´´ mean the organization established pursuant to the WTO Agreement.
       (14) WTO agreement.—The term ``WTO Agreement´´ means the Agreement Establishing the World Trade Organization entered into on April 15, 1994.
       (15) WTO member.—The term ``WTO member´´ has the meaning given that term in section 2(10) of the Uruguay Round Agreements Act (19 U.S.C. 3501(10)).