II

106TH CONGRESS

1ST SESSION S. 112

To authorize negotiation of free trade agreements with the countries of

the Americas, and for other purposes.

IN THE SENATE OF THE UNITED STATES

JANUARY 19, 1999

Mr. GRAMM introduced the following bill; which was read twice and referred

to the Committee on Finance

A BILL

To authorize negotiation of free trade agreements with the

countries of the Americas, and for other purposes.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘Americas Free Trade

5 Act’’.

6 SEC. 2. FINDINGS.

7 Congress makes the following findings:

8 (1) The countries of the Western Hemisphere

9 have enjoyed more success in the twentieth century

10 in the peaceful conduct of their relations among
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1 themselves than have the countries in the rest of the

2 world.

3 (2) The economic prosperity of the United

4 States and its trading partners in the Western

5 Hemisphere is increased by the reduction of trade

6 barriers.

7 (3) Trade protection endangers economic pros8 perity in the United States and throughout the

9 Western Hemisphere and undermines civil liberty

10 and constitutionally limited government.

11 (4) The successful establishment of a North

12 American Free Trade Area sets the pattern for the

13 reduction of trade barriers throughout the Western

14 Hemisphere, enhancing prosperity in place of the

15 cycle of increasing trade barriers and deepening pov16 erty that results from a resort to protectionism and

17 trade retaliation.

18 (5) The reduction of government interference in

19 the foreign and domestic sectors of a nation’s econ20 omy and the concomitant promotion of economic op21 portunity and freedoms promote civil liberty and

22 constitutionally limited government.

23 (6) Countries that observe a consistent policy of

24 free trade, the promotion of free enterprise and

25 other economic freedoms (including effective protec-
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1 tion of private property rights), and the removal of

2 barriers to foreign direct investment, in the context

3 of constitutionally limited government and minimal

4 interference in the economy, will follow the surest

5 and most effective prescription to alleviate poverty

6 and provide for economic, social, and political devel7 opment.

8 SEC. 3. FREE TRADE AREA FOR THE WESTERN HEMI9 SPHERE.

10 (a) IN GENERAL.—The President shall take action

11 to initiate negotiations to obtain trade agreements with

12 the sovereign countries located in the Western Hemi13 sphere, the terms of which provide for the reduction and

14 ultimate elimination of tariffs and other nontariff barriers

15 to trade, for the purpose of promoting the eventual estab16 lishment of a free trade area for the entire Western Hemi17 sphere.

18 (b) RECIPROCAL BASIS.—An agreement entered into

19 under subsection (a) shall be reciprocal and provide mu20 tual reductions in trade barriers to promote trade, eco21 nomic growth, and employment.

22 (c) BILATERAL OR MULTILATERAL BASIS.—Agree23 ments may be entered into under subsection (a) on a bilat24 eral basis with any foreign country described in that sub-
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1 section or on a multilateral basis with all of such countries

2 or any group of such countries.

3 SEC. 4. FREE TRADE WITH FREE CUBA.

4 (a) RESTRICTIONS PRIOR TO RESTORATION OF

5 FREEDOM IN CUBA.—The provisions of this Act shall not

6 apply to Cuba unless the President certifies to Congress

7 that—

8 (1) freedom has been restored in Cuba; and

9 (2) the claims of United States citizens for

10 compensation for expropriated property have been

11 appropriately addressed.

12 (b) STANDARDS FOR THE RESTORATION OF FREE13 DOM IN CUBA.—The President shall not make the certifi14 cation that freedom has been restored in Cuba, for pur15 pose of subsection (a), unless the President determines

16 that—

17 (1) a constitutionally guaranteed democratic

18 government has been established in Cuba with lead19 ers chosen through free and fair elections;

20 (2) the rights of individuals to private property

21 have been restored and are effectively protected and

22 broadly exercised in Cuba;

23 (3) Cuba has a currency that is fully convertible

24 domestically and internationally;
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1 (4) all political prisoners have been released in

2 Cuba; and

3 (5) the rights of free speech and freedom of the

4 press in Cuba are effectively guaranteed.

5 (c) PRIORITY FOR FREE TRADE WITH FREE

6 CUBA.—Upon making the certification described in sub7 section (a), the President shall give priority to the negotia8 tion of a free trade agreement with Cuba.

9 SEC. 5. INTRODUCTION AND FAST-TRACK CONSIDERATION

10 OF IMPLEMENTING BILLS.

11 (a) INTRODUCTION IN HOUSE AND SENATE.—When

12 the President submits to Congress a bill to implement a

13 trade agreement described in section 3, the bill shall be

14 introduced (by request) in the House and the Senate as

15 described in section 151(c) of the Trade Act of 1974 (19

16 U.S.C. 2191(c)).

17 (b) RESTRICTIONS ON CONTENT.—A bill to imple18 ment a trade agreement described in section 3—

19 (1) shall contain only provisions that are nec20 essary to implement the trade agreement; and

21 (2) may not contain any provision that estab22 lishes (or requires or authorizes the establishment

23 of) a labor or environmental protection standard or

24 amends (or requires or authorizes an amendment of)
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1 any labor or environmental protection standard set

2 forth in law or regulation.

3 (c) POINT OF ORDER IN SENATE.—

4 (1) APPLICABILITY TO ALL LEGISLATIVE

5 FORMS OF IMPLEMENTING BILL.—For the purposes

6 of this subsection, the term ‘‘implementing bill’’

7 means the following:

8 (A) THE BILL.—A bill described in sub9 section (a), without regard to whether that bill

10 originated in the Senate or the House of Rep11 resentatives.

12 (B) AMENDMENT.—An amendment to a

13 bill referred to in subparagraph (A).

14 (C) CONFERENCE REPORT.—A conference

15 report on a bill referred to in subparagraph (A).

16 (D) AMENDMENT BETWEEN HOUSES.—An

17 amendment between the Houses of Congress in

18 relation to a bill referred to in subparagraph

19 (A).

20 (E) MOTION.—A motion in relation to an

21 item referred to in subparagraph (A), (B), (C),

22 or (D).

23 (2) MAKING OF POINT OF ORDER.—

24 (A) AGAINST SINGLE ITEM.—When the

25 Senate is considering an implementing bill, a
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1 Senator may make a point of order against any

2 part of the implementing bill that contains ma3 terial in violation of a restriction under sub4 section (b).

5 (B) AGAINST SEVERAL ITEMS.—Notwith6 standing any other provision of law or rule of

7 the Senate, when the Senate is considering an

8 implementing bill, it shall be in order for a Sen9 ator to raise a single point of order that several

10 provisions of the implementing bill violate sub11 section (b). The Presiding Officer may sustain

12 the point of order as to some or all of the provi13 sions against which the Senator raised the point

14 of order.

15 (3) EFFECT OF SUSTAINMENT OF POINT OF

16 ORDER.—

17 (A) AGAINST SINGLE ITEM.—If a point of

18 order made against a part of an implementing

19 bill under paragraph (2)(A) is sustained by the

20 Presiding Officer, the part of the implementing

21 bill against which the point of order is sus22 tained shall be deemed stricken.

23 (B) AGAINST SEVERAL ITEMS.—In the

24 case of a point of order made under paragraph

25 (2)(B) against several provisions of an imple-
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1 menting bill, only those provisions against

2 which the Presiding Officer sustains the point

3 of order shall be deemed stricken.

4 (C) STRICKEN MATTER NOT IN ORDER AS

5 AMENDMENT.—Matter stricken from an imple6 menting bill under this paragraph may not be

7 offered as an amendment to the implementing

8 bill (in any of its forms described in paragraph

9 (1)) from the floor.

10 (4) WAIVERS AND APPEALS.—

11 (A) WAIVERS.—Before the Presiding Offi12 cer rules on a point of order under this sub13 section, any Senator may move to waive the

14 point of order as it applies to some or all of the

15 provisions against which the point of order is

16 raised. Such a motion to waive is amendable in

17 accordance with the rules and precedents of the

18 Senate.

19 (B) APPEALS.—After the Presiding Officer

20 rules on a point of order under this subsection,

21 any Senator may appeal the ruling of the Pre22 siding Officer on the point of order as it applies

23 to some or all of the provisions on which the

24 Presiding Officer ruled.
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1 (C) THREE-FIFTHS MAJORITY RE2 QUIRED.—

3 (i) WAIVERS.—A point of order under

4 this subsection is waived only by the af5 firmative vote of at least the requisite ma6 jority.

7 (ii) APPEALS.—A ruling of the Presid8 ing Officer on a point of order under this

9 subsection is sustained unless at least the

10 requisite majority votes not to sustain the

11 ruling.

12 (iii) REQUISITE MAJORITY.—For pur13 poses of clauses (i) and (ii), the requisite

14 majority is three-fifths of the Members of

15 the Senate, duly chosen and sworn.

16 (c) APPLICABILITY OF FAST TRACK PROCEDURES.—

17 Section 151 of the Trade Act of 1974 (19 U.S.C. 2191)

18 is amended—

19 (1) in subsection (b)(1)—

20 (A) by inserting ‘‘section 5 of the Americas

21 Free Trade Act,’’ after ‘‘the Omnibus Trade

22 and Competitiveness Act of 1988,’’; and

23 (B) by amending subparagraph (C) to read

24 as follows:
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1 ‘‘(C) if changes in existing laws or new

2 statutory authority is required to implement

3 such trade agreement or agreements or such ex4 tension, provisions, necessary to implement

5 such trade agreement or agreements or such ex6 tension, either repealing or amending existing

7 laws or providing new statutory authority.’’;

8 and

9 (2) in subsection (c)(1), by inserting ‘‘or under

10 section 5 of the Americas Free Trade Act,’’ after

11 ‘‘the Uruguay Round Agreements Act,’’.

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