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[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. 270 Introduced in Senate (IS)]

109th CONGRESS
  1st Session
                                 S. 270

    To provide a framework for consideration by the legislative and 
 executive branches of proposed unilateral economic sanctions in order 
 to ensure coordination of United States policy with respect to trade, 
                      security, and human rights.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                            February 2, 2005

   Mr. Lugar introduced the following bill; which was read twice and 
             referred to the Committee on Foreign Relations

_______________________________________________________________________

                                 A BILL

 
    To provide a framework for consideration by the legislative and 
 executive branches of proposed unilateral economic sanctions in order 
 to ensure coordination of United States policy with respect to trade, 
                      security, and human rights.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Sanctions Policy Reform Act''.

SEC. 2. PURPOSE.

    It is the purpose of this Act to establish an effective framework 
for consideration by the legislative and executive branches of 
unilateral economic sanctions in order to ensure coordination of United 
States policy with respect to trade, security, and human rights.

SEC. 3. STATEMENT OF POLICY.

    It is the policy of the United States--
            (1) to pursue United States interests through vigorous and 
        effective diplomatic, political, commercial, charitable, 
        educational, cultural, and strategic engagement with other 
        countries, while recognizing that the national security 
        interests of the United States may sometimes require the 
        imposition of economic sanctions on other countries;
            (2) to expand trade and investment with the developing 
        world to create the conditions for free market democracies and 
        the rule of law;
            (3) to foster multilateral cooperation on vital matters of 
        United States foreign policy, including promoting human rights 
        and democracy, combating international terrorism, proliferation 
        of weapons of mass destruction, and international narcotics 
        trafficking, and ensuring adequate environmental protection;
            (4) to promote United States economic growth and job 
        creation by expanding exports of goods, services, and 
        agricultural commodities, and by encouraging investment that 
        supports the sale abroad of products and services of the United 
        States;
            (5) to maintain the reputation of United States businesses 
        and farmers as reliable suppliers to international customers of 
        quality products and services, including United States 
        manufactures, technology products, financial services, and 
        agricultural commodities;
            (6) to avoid the use of restrictions on exports of 
        agricultural commodities as a foreign policy weapon;
            (7) to oppose policies of other countries designed to 
        discourage economic interaction with countries friendly to the 
        United States or with any United States national; and
            (8) when economic sanctions are necessary--
                    (A) to target them as narrowly as possible on those 
                foreign governments, entities, and officials that are 
                responsible for the conduct being targeted, thereby 
                minimizing unnecessary or disproportionate harm to 
                individuals who are not responsible for such conduct; 
                and
                    (B) to the extent feasible, to avoid any adverse 
                impact of economic sanctions on the humanitarian 
                activities of the United States and foreign 
                nongovernmental organizations in a country against 
                which sanctions are imposed.

SEC. 4. DEFINITIONS.

    In this Act:
            (1) Unilateral economic sanction.--
                    (A) In general.--The term ``unilateral economic 
                sanction'' means any prohibition, restriction, or 
                condition on economic activity, including economic 
                assistance, with respect to a foreign country or 
                foreign entity that is imposed by the United States for 
                reasons of foreign policy or national security, 
                including any of the measures described in subparagraph 
                (B), except in a case in which the United States 
                imposes the measure pursuant to a multilateral regime 
                and the other members of that regime have agreed to 
                impose substantially equivalent measures.
                    (B) Particular measures.--The measures referred to 
                in subparagraph (A) are the following:
                            (i) The suspension of, or any restriction 
                        or prohibition on, exports or imports of any 
                        product, technology, or service to or from a 
                        foreign country or entity.
                            (ii) The suspension of, or any restriction 
                        or prohibition on, financial transactions with 
                        a foreign country or entity.
                            (iii) The suspension of, or any restriction 
                        or prohibition on, direct or indirect 
                        investment in or from a foreign country or 
                        entity.
                            (iv) The imposition of increased tariffs 
                        on, or other restrictions on imports of, 
                        products of a foreign country or entity, 
                        including the denial, revocation, or 
                        conditioning of nondiscriminatory (normal trade 
                        relations) trade treatment.
                            (v) The suspension of, or any restriction 
                        or prohibition on--
                                    (I) the authority of the Export-
                                Import Bank of the United States to 
                                give approval to the issuance of any 
                                guarantee, insurance, or extension of 
                                credit in connection with the export of 
                                goods or services to a foreign country 
                                or entity;
                                    (II) the authority of the Trade and 
                                Development Agency to provide 
                                assistance in connection with projects 
                                in a foreign country or in which a 
                                particular foreign entity participates; 
                                or
                                    (III) the authority of the Overseas 
                                Private Investment Corporation to 
                                provide insurance, reinsurance, or 
                                financing or conduct other activities 
                                in connection with projects in a 
                                foreign country or in which a 
                                particular foreign entity participates.
                            (vi) A requirement that the United States 
                        representative to an international financial 
                        institution vote against any loan or other 
                        utilization of funds to, for, or in a foreign 
                        country or particular foreign entity.
                            (vii) A measure imposing any restriction or 
                        condition on economic activity of any foreign 
                        government or entity on the ground that such 
                        government or entity does business in or with a 
                        foreign country.
                            (viii) A measure imposing any restriction 
                        or condition on economic activity of any person 
                        that is a national of a foreign country, or on 
                        any government or other entity of a foreign 
                        country, on the ground that the government of 
                        that country has not taken measures in 
                        cooperation with, or similar to, sanctions 
                        imposed by the United States on a third 
                        country.
                            (ix) The suspension of, or any restriction 
                        or prohibition on, travel rights or air 
                        transportation to or from a foreign country.
                            (x) Any restriction on the filing or 
                        maintenance in a foreign country of any 
                        proprietary interest in intellectual property 
                        rights (including patents, copyrights, and 
                        trademarks), including payment of patent 
                        maintenance fees.
                    (C) Multilateral regime.--As used in this 
                paragraph, the term ``multilateral regime'' means an 
                agreement, arrangement, or obligation under which the 
                United States cooperates with other countries in 
                restricting commerce for reasons of foreign policy or 
                national security, including--
                            (i) obligations under resolutions of the 
                        United Nations;
                            (ii) nonproliferation and export control 
                        arrangements, such as the Australia Group, the 
                        Nuclear Supplier's Group, the Missile 
                        Technology Control Regime, and the Wassenaar 
                        Arrangement;
                            (iii) treaty obligations, such as under the 
                        Chemical Weapons Convention, the Treaty on the 
                        Non-Proliferation of Nuclear Weapons, and the 
                        Biological Weapons Convention; and
                            (iv) agreements concerning protection of 
                        the environment, such as the International 
                        Convention for the Conservation of Atlantic 
                        Tunas, the Declaration of Panama referred to in 
                        section 2(a)(1) of the International Dolphin 
                        Conservation Act (16 U.S.C. 1361 note), the 
                        Convention on International Trade in Endangered 
                        Species, the Montreal Protocol on Substances 
                        that Deplete the Ozone Layer, and the Basel 
                        Convention on the Control of Transboundary 
                        Movements of Hazardous Wastes.
                    (D) Economic assistance.--As used in this 
                paragraph, the term ``economic assistance'' means--
                            (i) any assistance under part I or chapter 
                        4 of part II of the Foreign Assistance Act of 
                        1961 (including programs under title IV of 
                        chapter 2 of part I of that Act, relating to 
                        the Overseas Private Investment Corporation), 
                        other than--
                                    (I) assistance under chapter 8 of 
                                part I of that Act,
                                    (II) disaster relief assistance, 
                                including any assistance under chapter 
                                9 of part I of that Act,
                                    (III) assistance which involves the 
                                provision of food (including 
                                monetization of food) or medicine, or
                                    (IV) assistance for refugees; and
                            (ii) the provision of agricultural 
                        commodities, other than food, under the 
                        Agricultural Trade Development and Assistance 
                        Act of 1954.
                    (E) Financial transaction.--As used in this 
                paragraph, the term ``financial transaction'' has the 
                meaning given that term in section 1956(c)(4) of title 
                18, United States Code.
                    (F) Investment.--As used in this paragraph, the 
                term ``investment'' means any contribution or 
                commitment of funds, commodities, services, patents, or 
                other forms of intellectual property, processes, or 
                techniques, including--
                            (i) a loan or loans;
                            (ii) the purchase of a share of ownership;
                            (iii) participation in royalties, earnings, 
                        or profits; and
                            (iv) the furnishing of commodities or 
                        services pursuant to a lease or other contract.
                    (G) Exclusions.--The term ``unilateral economic 
                sanction'' does not include--
                            (i) any measure imposed to remedy unfair 
                        trade practices or to enforce United States 
                        rights under a trade agreement, including under 
                        section 337 of the Tariff Act of 1930 (19 
                        U.S.C. 1337), title VII of that Act (19 U.S.C. 
                        1671 et seq.), title III of the Trade Act of 
                        1974 (19 U.S.C. 2411 et seq.), sections 1374 
                        and 1377 of the Omnibus Trade and 
                        Competitiveness Act of 1988 (19 U.S.C. 3103 and 
                        3106), and section 3 of the Act of March 3, 
                        1933 (41 U.S.C. 10b-1);
                            (ii) any measure imposed to remedy market 
                        disruption or to respond to injury to a 
                        domestic industry for which increased imports 
                        are a substantial cause or threat thereof, 
                        including remedies under sections 201 and 406 
                        of the Trade Act of 1974 (19 U.S.C. 2251 and 
                        2436), and textile import restrictions 
                        (including those imposed under section 204 of 
                        the Agricultural Act of 1956 (7 U.S.C. 1784));
                            (iii) any action taken under title IV of 
                        the Trade Act of 1974 (19 U.S.C. 2431 et seq.), 
                        including the enactment of a joint resolution 
                        under section 402(d)(2) of that Act;
                            (iv) any measure imposed to restrict 
                        imports of agricultural commodities to protect 
                        food safety or to ensure the orderly marketing 
                        of commodities in the United States, including 
                        actions taken under section 22 of the 
                        Agricultural Adjustment Act (7 U.S.C. 624);
                            (v) any measure imposed to restrict imports 
                        of any other products in order to protect 
                        domestic health or safety;
                            (vi) any measure authorized by, or imposed 
                        under, a multilateral or bilateral trade 
                        agreement to which the United States is a 
                        signatory, including the Uruguay Round 
                        Agreements, the North American Free Trade 
                        Agreement, the United States-Israel Free Trade 
                        Agreement, the United States-Jordan Free Trade 
                        Agreement, the United States-Chile Free Trade 
                        Agreement, the United States-Singapore Free 
                        Trade Agreement, and the United States-Canada 
                        Free Trade Agreement;
                            (vii) any prohibition or restriction on the 
                        sale, export, lease, or other transfer of any 
                        dual-use article under the Export 
                        Administration Act or similar prohibitions or 
                        restrictions under the International Emergency 
                        Economic Powers Act; and
                            (viii) any prohibition or restriction on 
                        the sale, export, lease, or other transfer of 
                        any defense article, defense service, or design 
                        and construction service under the Arms Export 
                        Control Act, or on any financing provided under 
                        that Act.
            (2) Agricultural commodity.--The term ``agricultural 
        commodity'' has the meaning given that term in section 102(1) 
        of the Agricultural Trade Act of 1978 (7 U.S.C. 5602(1)).
            (3) Appropriate congressional committees.--The term 
        ``appropriate congressional committees'' means the Committee on 
        Agriculture, the Committee on International Relations, the 
        Committee on Ways and Means, and the Committee on Financial 
        Services of the House of Representatives, and the Committee on 
        Agriculture, Nutrition, and Forestry, the Committee on Finance, 
        and the Committee on Foreign Relations of the Senate.
            (4) Contract sanctity.--The term ``contract sanctity'', 
        with respect to a unilateral economic sanction, refers to the 
        inapplicability of the sanction to--
                    (A) a contract or agreement entered into before the 
                committee of primary jurisdiction provides notice of 
                the opportunity for public comment in the Congressional 
                Record pursuant to section 6(a) or the President 
                publishes notice in the Federal Register pursuant to 
                section 7(a), or to a valid export license or other 
                authorization to export; and
                    (B) actions taken to enforce the right to maintain 
                intellectual property rights, in the foreign country 
                against which the sanction is imposed, which existed 
                before the committee of primary jurisdiction provided 
                notice of the opportunity for public comment in the 
                Congressional Record pursuant to section 6(a) or the 
                President published notice in the Federal Register 
                pursuant to section 7(a).
            (5) Unilateral economic sanction legislation.--The term 
        ``unilateral economic sanction legislation'' means a bill or 
        joint resolution that imposes, or authorizes the imposition of, 
        any unilateral economic sanction.

SEC. 5. GUIDELINES FOR UNILATERAL ECONOMIC SANCTIONS LEGISLATION.

    It is the sense of Congress that any unilateral economic sanction 
legislation that is introduced in or reported to a House of Congress on 
or after the date of enactment of this Act should--
            (1) state the foreign policy or national security objective 
        or objectives of the United States that the economic sanction 
        is intended to achieve;
            (2) provide that the economic sanction terminate 2 years 
        after it is imposed, unless specifically reauthorized by 
        Congress;
            (3) provide contract sanctity, except that contract 
        sanctity shall not be required in any case--
                    (A) in which execution of the contract is contrary 
                to law;
                    (B) in which the contract involves assets that will 
                be frozen as a consequence of the proposed sanction; or
                    (C) in which the contract provides for the supply 
                of goods or services directly to a specific person, 
                government agency, or  military unit that is expressly 
named as a target of the proposed sanction;
            (4) provide authority for the President both to adjust the 
        timing and scope of the sanction and to waive the sanction, if 
        the President determines it is in the national interest to do 
        so;
            (5)(A) target the sanction as narrowly as possible on 
        foreign governments, entities, and officials that are 
        responsible for the conduct being targeted;
            (B) not include restrictions on the provision of medicine, 
        medical equipment, or food; and
            (C) seek to minimize any adverse impact on the humanitarian 
        activities of United States and foreign nongovernmental 
        organizations in any country against which the sanction may be 
        imposed;
            (6) include findings based on the report provided by the 
        Secretary of Agriculture pursuant to section 6(c)(2) 
        regarding--
                    (A) the extent to which the proposed sanction is 
                likely to restrict exports of any agricultural 
                commodity or is likely to result in retaliation against 
                exports of any agricultural commodity from the United 
                States; and
                    (B) the extent to which the sanction is proposed to 
                be imposed, or is likely to be imposed, on a country or 
                countries that constituted, in the preceding calendar 
                year, the market for more than 3 percent of all export 
                sales from the United States of an agricultural 
                commodity;
            (7) direct the Secretary of Agriculture to expand 
        agricultural export assistance under United States market 
        development, food assistance, or export promotion programs to 
        offset any potential damage to incomes of producers of any 
        affected agricultural commodity, to the maximum extent 
        permitted by law and by the obligations of the United States 
        under the Agreement on Agriculture referred to in section 
        101(d)(2) of the Uruguay Round Agreements Act (19 U.S.C. 
        3511(d)(2));
            (8) take into account any findings of the Secretary of the 
        Treasury regarding how the sanction will impact capital 
        markets; and
            (9) take into account any findings of the Secretary of 
        Energy regarding how the sanction will impact United States 
        energy markets and the supply of energy in the United States.

SEC. 6. REQUIREMENTS FOR UNILATERAL ECONOMIC SANCTIONS LEGISLATION.

    (a) Public Comment.--Not later than 15 days prior to the 
consideration by the committee of primary jurisdiction of any 
unilateral economic sanction legislation, the chairman of the committee 
shall cause to be printed in the Congressional Record a notice that 
provides an opportunity for interested members of the public to submit 
comments to the committee on the proposed sanction.
    (b) Committee Reports.--In the case of any unilateral economic 
sanction legislation that is reported by a committee of the House of 
Representatives or the Senate, the committee report accompanying the 
legislation shall contain a statement of whether the legislation meets 
all the guidelines specified in section 5 and, if the legislation does 
not, an explanation of why it does not. The report shall also include a 
specific statement of whether the legislation includes any restrictions 
on the provision of medicine, medical equipment, or food.
    (c) Reports.--
            (1) Report by the president.--Not later than 30 days after 
        a committee of the House of Representatives or the Senate 
        reports any unilateral economic sanction legislation, the 
        President shall submit to the House of the committee reporting 
        such legislation a report containing--
                     (A) an assessment of--
                            (i) the likelihood that the proposed 
                        unilateral economic sanction will achieve its 
                        stated objective within a reasonable period of 
                        time; and
                            (ii) the impact of the proposed unilateral 
                        economic sanction on--
                                    (I) humanitarian conditions, 
                                including the impact on conditions in 
                                any specific countries on which the 
                                sanction is proposed to be or may be 
                                imposed;
                                    (II) humanitarian activities of 
                                United States and foreign 
                                nongovernmental organizations;
                                    (III) relations with United States 
                                allies;
                                    (IV) other United States national 
                                security and foreign policy interests; 
                                and
                                    (V) countries and entities other 
                                than those on which the sanction is 
                                proposed to be or may be imposed; and
                    (B) a description and assessment of--
                            (i) diplomatic and other steps the United 
                        States has taken to accomplish the intended 
                        objectives of the unilateral sanction 
                        legislation;
                            (ii) the likelihood of multilateral 
                        adoption of comparable measures;
                            (iii) comparable measures undertaken by 
                        other countries;
                            (iv) alternative measures to promote the 
                        same objectives, and an assessment of their 
                        potential effectiveness;
                            (v) any obligations of the United States 
                        under international treaties or trade 
                        agreements with which the proposed sanction may 
                        conflict;
                            (vi) the likelihood that the proposed 
                        sanction will lead to retaliation against 
                        United States interests, including agricultural 
                        interests; and
                            (vii) whether the achievement of the 
                        objectives of the proposed sanction outweighs 
                        any likely costs to United States foreign 
                        policy, national security, economic, and 
                        humanitarian interests, including any potential 
harm to United States business, agriculture, and consumers, and any 
potential harm to the international reputation of the United States as 
a reliable supplier of products, technology, agricultural commodities, 
and services.
            (2) Report by the secretary of agriculture.--Not later than 
        30 days after a committee of the House of Representatives or 
        the Senate reports any unilateral economic sanction legislation 
        affecting the export of agricultural commodities from the 
        United States, the Secretary of Agriculture shall submit to the 
        House of the committee reporting such legislation a report 
        containing an assessment of--
                    (A) the extent to which any country or countries 
                proposed to be sanctioned or likely to be sanctioned 
                are markets that accounted for, in the preceding 
                calendar year, more than 3 percent of all export sales 
                from the United States of any agricultural commodity;
                    (B) the likelihood that exports of agricultural 
                commodities from the United States will be affected by 
                the proposed sanction or by retaliation by any country 
                proposed to be sanctioned or likely to be sanctioned, 
                and specific commodities which are most likely to be 
                affected;
                    (C) the likely effect on incomes of producers of 
                the specific commodities identified by the Secretary;
                    (D) the extent to which the proposed sanction would 
                permit foreign suppliers to replace United States 
                suppliers; and
                    (E) the likely effect of the proposed sanction on 
                the reputation of United States farmers as reliable 
                suppliers of agricultural commodities in general, and 
                of the specific commodities identified by the 
                Secretary.
            (3) Report by the congressional budget office.--Any bill or 
        joint resolution that imposes a unilateral economic sanction 
        shall be treated as including a Federal private sector mandate 
        for purposes of part B of title IV of the Congressional Budget 
        and Impoundment Control Act of 1974 (2 U.S.C. 658 et seq.) and 
        the Congressional Budget Office shall report accordingly. The 
        report shall include an assessment of--
                    (A) the likely short-term and long-term costs of 
                the proposed sanction to the United States economy, 
                including the potential impact on United States trade 
                performance, employment, and growth;
                    (B) the impact the proposed sanction will have on 
                the international reputation of the United States as a 
                reliable supplier of products, agricultural 
                commodities, technology, and services; and
                    (C) the impact the proposed sanction will have on 
                the economic well-being and international competitive 
                position of United States industries, firms, workers, 
                farmers, and communities.
    (d) Rules of the House of Representatives and Senate.--This section 
is enacted by Congress--
            (1) as an exercise of the rulemaking power of the House of 
        Representatives and the Senate, respectively, and as such these 
        rules are deemed a part of the rules of each House, 
        respectively, and they supersede other rules only to the extent 
        that they are inconsistent therewith; and
            (2) with full recognition of the constitutional right of 
        either House to change the rules (so far as relating to the 
        procedure of that House) at any time, in the same manner and to 
        the same extent as in the case of any other rule of that House.

SEC. 7. REQUIREMENTS FOR EXECUTIVE ACTION.

    (a) Notice.--
            (1) In general.--
                    (A) Notice of intent to impose sanction.--
                Notwithstanding any other provisions of law, the 
                President shall publish notice in the Federal Register, 
                at least 45 days in advance of the imposition of any 
                new unilateral economic sanction under any provision of 
                law with respect to a foreign country or foreign 
                entity, of the President's intention to implement such 
                sanction. The Federal Register notice shall provide the 
                opportunity for interested persons to submit comments 
                regarding the proposed new unilateral economic 
                sanction. The purpose of such notice and opportunity 
                for comment shall be to allow the formulation of an 
                effective sanction that advances United States national 
                security and economic interests, and to provide an 
                opportunity for negotiations to achieve the objectives 
                specified in the law authorizing imposition of a 
                unilateral economic sanction.
                    (B) Waiver of advance notice requirement.--The 
                President may waive the provisions of subparagraph (A) 
                if the President determines that the national interest 
                would be jeopardized by the requirements of the 
                section.
                    (C) Authority to negotiate.--Notwithstanding any 
                other provision of law, the President is authorized to 
                negotiate with the foreign government against which a 
                unilateral economic sanction is proposed to resolve the 
                underlying reasons for the sanction during the 45-day 
                period following the publication of notice in the 
                Federal Register.
            (2) New unilateral economic sanction.--For purposes of this 
        section, the term ``new unilateral economic sanction'' means a 
        unilateral economic sanction imposed pursuant to a law enacted 
        after the date of enactment of this Act or a sanction imposed 
        after such date of enactment pursuant to the International 
        Emergency Economic Powers Act (50 U.S.C. 1701 et seq.).
    (b) Consultation.--
            (1) In general.--The President shall consult with the 
        appropriate congressional committees regarding a proposed new 
        unilateral economic sanction, including consultations regarding 
        efforts to achieve or increase  multilateral cooperation on the 
issues or problems prompting the proposed sanction.
            (2) Classified consultations.--The consultations described 
        in paragraph (1) may be conducted on a classified basis if 
        disclosure would threaten the national security of the United 
        States.
    (c) Requirements for Executive Branch Sanctions.--Any new 
unlilateral economic sanction imposed by the President--
            (1) shall--
                    (A) provide contract sanctity, except that contract 
                sanctity shall not be required in any case--
                            (i) in which execution of the contract is 
                        contrary to law;
                            (ii) in which the contract involves assets 
                        that will be frozen as a consequence of the 
                        proposed sanction; or
                            (iii) in which the contract provides for 
                        the supply of goods or services directly to a 
                        specific person, government agency, or military 
                        unit that is expressly named as a target of the 
                        proposed sanction;
                    (B) terminate not later than 2 years after the 
                sanction is imposed, unless specifically extended by 
                the President in accordance with this section;
                    (C)(i) be targeted as narrowly as possible on 
                foreign governments, entities, and officials that are 
                responsible for the conduct being targeted; and
                    (ii) seek to minimize any adverse impact on the 
                humanitarian activities of United States and foreign 
                nongovernmental organizations in a country against 
                which the sanction may be imposed; and
                    (D) not include any restriction on the export, 
                financing, support, or provision of medicine, medical 
                equipment, medical supplies, food, or other 
                agricultural commodity (including fertilizer), other 
                than restrictions imposed in response to national 
                security threats, where multilateral sanctions are in 
                place, or restrictions involving a country where the 
                United States is engaged in armed conflict; and
            (2) should direct the Secretary of Agriculture to expand 
        agricultural export assistance under United States market 
        development, food assistance, and export promotion programs to 
        offset any potential damage to incomes of producers of any 
        affected agricultural commodity, to the maximum extent 
        permitted by law and by the obligations of the United States 
        under the Agreement on Agriculture referred to in section 
        101(d)(2) of the Uruguay Round Agreements Act (19 U.S.C. 
        3511(d)(2)).
    (d) Report by the President.--
            (1) In general.--Prior to imposing any new unilateral 
        economic sanction, the President shall provide a report to the 
        appropriate congressional committees on the proposed sanction. 
        The report shall include the report of the International Trade 
        Commission under subsection (f) (if timely submitted prior to 
        the filing of the report). The report may be provided on a 
        classified basis if disclosure would threaten the national 
        security of the United States. The President's report shall 
        contain the following:
                    (A) An explanation of the foreign policy or 
                national security objective or objectives intended to 
                be achieved through the proposed sanction.
                    (B) An assessment of--
                            (i) the likelihood that the proposed 
                        sanction will achieve its stated objectives 
                        within the stated period of time; and
                            (ii) the impact of the proposed sanction 
                        on--
                                    (I) humanitarian conditions, 
                                including the impact on conditions in 
                                any specific countries on which the 
                                sanction is proposed to be imposed;
                                    (II) humanitarian activities of 
                                United States and foreign 
                                nongovernmental organizations;
                                    (III) relations with United States 
                                allies; and
                                    (IV) other United States national 
                                security and foreign policy interests, 
                                including countries and entities other 
                                than those on which the sanction is 
                                proposed to be imposed.
                    (C) A description and assessment of--
                            (i) diplomatic and other steps the United 
                        States has taken to accomplish the intended 
                        objectives of the proposed sanction;
                            (ii) the likelihood of multilateral 
                        adoption of comparable measures;
                            (iii) comparable measures undertaken by 
                        other countries;
                            (iv) alternative measures to promote the 
                        same objectives, and an assessment of their 
                        potential effectiveness;
                            (v) any obligations of the United States 
                        under international treaties or trade 
                        agreements with which the proposed sanction may 
                        conflict;
                            (vi) the likelihood that the proposed 
                        sanction will lead to retaliation against 
                        United States interests, including agricultural 
                        interests; and
                            (vii) whether the achievement of the 
                        objectives of the proposed sanction outweighs 
                        any likely costs to United States foreign 
                        policy, national security, economic, and 
                        humanitarian interests, including any potential 
                        harm to United States business, agriculture, 
                        and consumers, and any potential harm to the 
                        international reputation of the United States 
                        as a reliable supplier of products, technology, 
                         agricultural commodities, and services.
            (2) Report on other sanctions.--In the case of any 
        unilateral economic sanction that is imposed after the date of 
enactment of this Act, other than a new unilateral economic sanction 
described in subsection (a)(2) or a sanction that is a continuation of 
a sanction in effect on the date of enactment of this Act, the 
President shall not later than 30 days after imposing such sanction 
submit to Congress a report described in paragraph (1) relating to such 
sanction. The report may be provided on a classified basis if 
disclosure would threaten the national security of the United States.
    (e) Report by the Secretary of Agriculture.--Prior to the 
imposition of a new unilateral economic sanction by the President, the 
Secretary of Agriculture shall submit to the appropriate congressional 
committees a report that shall contain an assessment of--
            (1) the extent to which any country or countries proposed 
        to be sanctioned are markets that accounted for, in the 
        preceding calendar year, more than 3 percent of all export 
        sales from the United States of any agricultural commodity;
            (2) the likelihood that exports of agricultural commodities 
        from the United States will be affected by the proposed 
        sanction or by retaliation by any country proposed to be 
        sanctioned, including specific commodities which are most 
        likely to be affected;
            (3) the likely effect on incomes of producers of the 
        specific commodities identified by the Secretary;
            (4) the extent to which the proposed sanction would permit 
        foreign suppliers to replace United States suppliers; and
            (5) the likely effect of the proposed sanction on the 
        reputation of United States farmers as reliable suppliers of 
        agricultural commodities in general, and of the specific 
        commodities identified by the Secretary.
    (f) Report by the United States International Trade Commission.--
Before imposing a new unilateral economic sanction, the President shall 
make a timely request to the United States International Trade 
Commission for a report on the likely short-term and long-term costs of 
the proposed sanction to the United States economy, including the 
potential impact on United States trade performance, employment, and 
growth, the international reputation of the United States as a reliable 
supplier of products, agricultural commodities, technology, and 
services, and the economic well-being and international competitive 
position of United States industries, firms, workers, farmers, and 
communities.
    (g) Waiver Authority.--The President may waive any of the 
requirements of this section in the event that the President determines 
that such a waiver is in the national interest of the United States. In 
the event of such a waiver, the requirements waived shall be met during 
the 60-day period immediately following the imposition of the new 
unilateral economic sanction.
    (h) Sanctions Review Committee.--
            (1) Establishment.--There is established within the 
        executive branch of Government an interagency committee, which 
        shall be known as the Sanctions Review Committee, which shall 
        have the responsibility of coordinating United States policy 
        regarding unilateral economic sanctions and of providing 
        appropriate recommendations to the President prior to any 
        decision regarding the implementation of any unilateral 
        economic sanction. The Committee shall be composed of the 
        following 11 members, and any other member the President 
        considers appropriate:
                    (A) The Secretary of State.
                    (B) The Secretary of the Treasury.
                    (C) The Secretary of Defense.
                    (D) The Secretary of Agriculture.
                    (E) The Secretary of Commerce.
                    (F) The Secretary of Energy.
                    (G) The United States Trade Representative.
                    (H) The Director of the Office of Management and 
                Budget.
                    (I) The Chairman of the Council of Economic 
                Advisers.
                    (J) The Assistant to the President for National 
                Security Affairs.
                    (K) The Assistant to the President for Economic 
                Policy.
            (2) Chair.--The President shall designate one of the 
        members specified in paragraph (1) to serve as Chair of the 
        Sanctions Review Committee.
    (i) Inapplicability of Other Provisions.--This section applies 
notwithstanding any other provision of law.

SEC. 8. ANNUAL REPORTS.

    (a) Annual Report.--Not later than 6 months after the date of 
enactment of this Act, and annually thereafter, unless otherwise 
required under existing law, the President shall submit to the 
appropriate congressional committees a report detailing with respect to 
each country or entity against which a unilateral economic sanction has 
been imposed--
            (1) the extent to which the sanction has achieved foreign 
        policy or national security objectives of the United States 
        with respect to that country or entity;
            (2) the extent to which the sanction has harmed 
        humanitarian interests in that country, the country in which 
        that entity is located, or in other countries; and
            (3) the impact of the sanction on other national security 
        and foreign policy interests of the United States, including 
        relations with countries friendly to the United States, and on 
        the United States economy.
    (b) Report by the United States International Trade Commission.--
Not later than 6 months after the date of enactment of this Act, and 
annually thereafter, the United States International Trade Commission 
shall report to the appropriate congressional committees on the costs, 
individually and in the aggregate, of all unilateral economic sanctions 
in effect under United States law, regulation, or Executive order. The 
calculation of such costs shall include an assessment of the impact of 
such measures on the international reputation of the United States as a 
reliable supplier of products, agricultural commodities, technology, 
and services.

SEC. 9. PRESIDENTIAL WAIVER AUTHORITY.

    (a) Waiver Authority.--The President may waive the application of 
any sanction or prohibition (or portion thereof) contained in section 
101 or 102 of the Arms Export Control Act, section 620E(e) of the 
Foreign Assistance Act of 1961, or section 2(b)(4) of the Export Import 
Bank Act of 1945 if the President determines that such a waiver would 
advance the purposes of such Acts or the national security interests of 
the United States.
    (b) Consultation.--Prior to exercising the waiver authority 
provided in subsection (a), the President shall consult with the 
appropriate congressional committees. Such consultations may be 
conducted on a classified basis if disclosure would threaten the 
national security of the United States.
    (c) Reports.--At least once every 6 months after exercising the 
waiver authority in subsection (a), the President shall report to 
Congress with respect to the actions taken since the submission of the 
preceding report, and the reasons that continuation of any waiver under 
subsection (a) remains in the national security interest of the United 
States.

SEC. 10. EFFECTIVE DATE.

    This Act shall take effect on the date that is 20 days after the 
date of enactment of this Act.
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