II 

Calendar No. 381 

109TH CONGRESS 

2D SESSION S. 2467 

To enhance and improve the trade relations of the United States by strengthening United States trade enforcement efforts and encouraging United 

States trading partners to adhere to the rules and norms of international 

trade, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

MARCH 28, 2006 

Mr. GRASSLEY (for himself, Mr. BAUCUS, Mr. DEMINT, Ms. STABENOW, Mr. 

LUGAR, Mr. LEVIN, Mr. SANTORUM, Mr. CRAIG, Mr. CHAFEE, Mr. 

CRAPO, and Mrs. DOLE) introduced the following bill; which was read the 

first time 

MARCH 29, 2006 

Read the second time and placed on the calendar 

A BILL 

To enhance and improve the trade relations of the United 

States by strengthening United States trade enforcement 

efforts and encouraging United States trading partners 

to adhere to the rules and norms of international trade, 

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, 


rfake on PROD1PC77 with BILLS
2 

•S 2467 PCS

1 SECTION 1. SHORT TITLE. 

2 This Act may be cited as the ‘‘United States Trade 

3 Enhancement Act of 2006’’. 

4 TITLE I—ENFORCEMENT 

5 PROVISIONS 

6 SEC. 101. SUSPENSION OF NEW SHIPPER REVIEW PROVI7 SION. 

8 (a) SUSPENSION OF THE AVAILABILITY OF BONDS

9 TO NEW SHIPPERS.—Clause (iii) of section 751(a)(2)(B) 

10 of the Tariff Act of 1930 (19 U.S.C. 1675(a)(2)(B)(iii)) 

11 shall not be effective during the period beginning on April 

12 1, 2006, and ending on June 30, 2009. 

13 (b) REPORT ON THE IMPACT OF THE SUSPENSION.— 

14 Not later than December 31, 2008, the Secretary of the 

15 Treasury, in consultation with the Secretary of Commerce, 

16 the United States Trade Representative, and the Sec17 retary of Homeland Security, shall submit to the Com18 mittee on Ways and Means of the House of Representa19 tives and the Committee on Finance of the Senate a report 

20 containing— 

21 (1) recommendations on whether the suspension 

22 of section 751(a)(2)(B)(iii) of the Tariff Act of 1930 

23 should be extended beyond the date provided in sub24 section (a); and 

25 (2) an assessment of the effectiveness of any 

26 administrative measure that was implemented to adVerDate Aug 31 2005 03:46 Mar 30, 2006 Jkt 049200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S2467.PCS S2467

rfake on PROD1PC77 with BILLS
3 

•S 2467 PCS

1 dress the difficulties that necessitated the suspension 

2 under subsection (a), including— 

3 (A) any problem in the collection of anti4 dumping duties on imports from new shippers; 

5 and 

6 (B) any burden imposed on legitimate 

7 trade and commerce by the suspension of bonds 

8 to new shippers. 

9 (c) REPORT ON COLLECTION PROBLEMS AND ANAL10 YSIS OF PROPOSED SOLUTIONS.— 

11 (1) REPORT.—Not later than 180 days after 

12 the date of the enactment of this Act, the Secretary 

13 of the Treasury, in consultation with the Secretary 

14 of Homeland Security and the Secretary of Com15 merce, shall submit to the Committee on Ways and 

16 Means of the House of Representatives and the 

17 Committee on Finance of the Senate a report de18 scribing— 

19 (A) any major problem experienced in the 

20 collection of duties during the 4 most recent fis21 cal years for which data are available, including 

22 any fraudulent activity intended to avoid pay23 ment of duties; and 

24 (B) an estimate of the total amount of du25 ties that were uncollected during the most reVerDate Aug 31 2005 02:55 Mar 30, 2006 Jkt 049200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S2467.PCS S2467

rfake on PROD1PC77 with BILLS
4 

•S 2467 PCS

1 cent fiscal year for which data are available, in2 cluding, with respect to each product, a descrip3 tion of why the duties were uncollected. 

4 (2) RECOMMENDATIONS.—The report shall in5 clude— 

6 (A) recommendations on any additional ac7 tion needed to address problems related to the 

8 collection of duties; and 

9 (B) for each recommendation— 

10 (i) an analysis of how the rec11 ommendation would address the specific 

12 problem; and 

13 (ii) an assessment of the impact that 

14 implementing the recommendation would 

15 have on international trade and commerce 

16 (including any additional costs imposed on 

17 United States businesses). 

18 SEC. 102. TRADE ENFORCEMENT PERSONNEL. 

19 (a) DEPUTY UNITED STATES TRADE REPRESENTA20 TIVES; GENERAL COUNSEL.—Section 141(b)(2) of the 

21 Trade Act of 1974 (19 U.S.C. 2171(b)(2)) is amended to 

22 read as follows: 

23 ‘‘(2) There shall be in the Office three Deputy United 

24 States Trade Representatives, 1 Chief Agricultural Nego25 tiator, and 1 General Counsel. The 3 Deputy United 


rfake on PROD1PC77 with BILLS
5 

•S 2467 PCS

1 States Trade Representatives, the Chief Agricultural Ne2 gotiator, and the General Counsel, shall be appointed by 

3 the President, by and with the advice and consent of the 

4 Senate. As an exercise of the rulemaking authority of the 

5 Senate, any nomination of a Deputy United States Trade 

6 Representative, the Chief Agricultural Negotiator, or the 

7 General Counsel, submitted to the Senate for its advice 

8 and consent, and referred to a committee, shall be referred 

9 to the Committee on Finance. Each Deputy United States 

10 Trade Representative, the Chief Agricultural Negotiator, 

11 and the General Counsel, shall hold office at the pleasure 

12 of the President. Each Deputy United States Trade Rep13 resentative and the Chief Agricultural Negotiator shall 

14 have the rank of Ambassador.’’. 

15 (b) FUNCTIONS OF POSITION.—Section 141(c) of the 

16 Trade Act of 1974 (19 U.S.C. 2171(c)) is amended— 

17 (1) by moving paragraph (5) 2 ems to the left; 

18 and 

19 (2) by adding at the end the following new 

20 paragraph: 

21 ‘‘(6) A principal function of the General Counsel shall 

22 be to ensure that United States trading partners comply 

23 with obligations assumed under trade agreements to which 

24 the United States is a party. The General Counsel shall 

25 assist the United States Trade Representative in invesVerDate Aug 31 2005 02:55 Mar 30, 2006 Jkt 049200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\S2467.PCS S2467

rfake on PROD1PC77 with BILLS
6 

•S 2467 PCS

1 tigating and prosecuting disputes pursuant to trade agree2 ments to which the United States is a party, including 

3 before the World Trade Organization, and shall assist the 

4 United States Trade Representative in carrying out the 

5 Trade Representative’s functions under subsection (d). 

6 The General Counsel shall make recommendations with 

7 respect to the administration of United States trade laws 

8 relating to foreign government barriers to United States 

9 goods, services, investment, and intellectual property, and 

10 with respect to government procurement and other trade 

11 matters. The General Counsel shall perform such other 

12 functions as the Trade Representative may direct.’’. 

13 (c) COMPENSATION; EFFECTIVE DATE.— 

14 (1) IN GENERAL.—Section 5315 of title 5, 

15 United States Code, is amended by adding at the 

16 end the following new item: 

17 ‘‘General Counsel of the Office of the United 

18 States Trade Representative.’’. 

19 (2) EFFECTIVE DATE.—The amendment made 

20 by this subsection shall take effect on the date that 

21 an individual nominated by the President to the po22 sition of General Counsel of the Office of the United 

23 States Trade Representative is confirmed by the 

24 United States Senate. 


rfake on PROD1PC77 with BILLS
7 

•S 2467 PCS

1 (d) CONTINUATION IN OFFICE.—The individual serv2 ing as General Counsel in the Office of the United States 

3 Trade Representative on the day before the date of the 

4 enactment of this Act may serve in the General Counsel 

5 position established pursuant to subsection (a) as Acting 

6 General Counsel until the date that an individual nomi7 nated to such position by the President is confirmed by 

8 the United States Senate. 

9 (e) TRADE ENFORCEMENT WORKING GROUP.—Not 

10 later than 90 days after the date of the enactment of this 

11 Act, the United States Trade Representative shall estab12 lish an interagency Trade Enforcement Working Group. 

13 (1) CHAIRPERSON.—The Trade Enforcement 

14 Working Group shall be chaired by the General 

15 Counsel of the Office of the United States Trade 

16 Representative and shall include the Assistant Sec17 retary for Market Access and Compliance in the De18 partment of Commerce, as well as other appropriate 

19 representatives from the Department of Commerce, 

20 and the Departments of State, Treasury, and Agri21 culture, and such other departments and agencies as 

22 the Trade Representative considers appropriate. 

23 (2) DUTIES.—The Trade Enforcement Working 

24 Group shall assist the General Counsel of the Office 

25 of the United States Trade Representative in carVerDate Aug 31 2005 02:55 Mar 30, 2006 Jkt 049200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\S2467.PCS S2467

rfake on PROD1PC77 with BILLS
8 

•S 2467 PCS

1 rying out the principal functions described in section 

2 141(c)(6) of the Trade Act of 1974. 

3 (f) IDENTIFICATION OF TRADE ENFORCEMENT PRI4 ORITIES.— 

5 (1) IN GENERAL.—Section 310 of the Trade 

6 Act of 1974 (19 U.S.C. 2420) is amended to read 

7 as follows: 

8 ‘‘SEC. 310. IDENTIFICATION OF TRADE ENFORCEMENT PRI9 ORITIES. 

10 ‘‘(a) IDENTIFICATION AND ANNUAL REPORT.—On or 

11 before the date that is 90 days after the date that the 

12 report required by section 181(b) is due to be submitted 

13 each calendar year, the United States Trade Representa14 tive shall— 

15 ‘‘(1) identify the trade enforcement priorities of 

16 the United States; 

17 ‘‘(2) identify trade enforcement actions under18 taken by the United States during the preceding 

19 year and provide an assessment of the impact such 

20 trade enforcement actions have had in addressing 

21 foreign trade barriers; 

22 ‘‘(3) determine the priority foreign country 

23 trade practices on which the Trade Representative 

24 will focus the trade enforcement efforts of the 

25 United States; and 


rfake on PROD1PC77 with BILLS
9 

•S 2467 PCS

1 ‘‘(4) submit to the Committee on Finance of 

2 the Senate and the Committee on Ways and Means 

3 of the House of Representatives a written report on 

4 the priorities, actions, and assessments required by 

5 paragraphs (1) and (2), as well as a nonconfidential 

6 summary of the determination required by para7 graph (3), and cause such report and summary to 

8 be published in the Federal Register. 

9 ‘‘(b) FACTORS TO CONSIDER.—In reaching the de10 termination required by subsection (a)(3), the Trade Rep11 resentative shall take into account all relevant factors, in12 cluding— 

13 ‘‘(1) the economic significance of any potential 

14 inconsistency between an obligation assumed by a 

15 foreign government pursuant to a trade agreement 

16 to which the United States is a party, and the poli17 cies or practices of such foreign government; 

18 ‘‘(2) the major barriers and trade distorting 

19 practices described in the National Trade Estimate 

20 Report required under section 181(b); 

21 ‘‘(3) the findings in other relevant reports ad22 dressing international trade and investment pre23 pared by the United States Trade Representative 

24 during the 12 months preceding the date on which 


rfake on PROD1PC77 with BILLS
10 

•S 2467 PCS

1 the report required by subsection (a)(4) is due to be 

2 submitted; 

3 ‘‘(4) the implications of a foreign government’s 

4 procurement plans and policies; 

5 ‘‘(5) the international competitive position and 

6 export potential of United States products and serv7 ices; and 

8 ‘‘(6) the extent to which United States intellec9 tual property rights are being infringed upon. 

10 ‘‘(c) CONSULTATION PRIOR TO REPORT.—Not later 

11 than 45 days before the date on which the report required 

12 by subsection (a)(4) is due to be submitted, the General 

13 Counsel of the Office of the United States Trade Rep14 resentative shall— 

15 ‘‘(1) appear before an open session of the Com16 mittee on Finance of the Senate and the Committee 

17 on Ways and Means of the House of Representatives 

18 to receive congressional input on the determination 

19 and assessment required by subsection (a)(3); and 

20 ‘‘(2) provide an opportunity (after giving not 

21 less than 30 days notice) for the presentation of 

22 views by interested persons with respect to the deter23 mination and assessment required by subsection 

24 (a)(3), including a public hearing if requested by 

25 any interested person. 


rfake on PROD1PC77 with BILLS
11 

•S 2467 PCS

1 ‘‘(d) CONSULTATION AFTER REPORT.—Not later 

2 than 30 days after the date on which the report required 

3 by subsection (a)(4) is due to be submitted each calendar 

4 year, the General Counsel of the Office of the United 

5 States Trade Representative shall appear before closed 

6 sessions of the Committee on Finance of the Senate and 

7 the Committee on Ways and Means of the House of Rep8 resentatives to brief each committee on the determination 

9 required by subsection (a)(3).’’. 

10 (2) CONFORMING AMENDMENT.—The table of 

11 contents for the Trade Act of 1974 is amended by 

12 striking the item relating to section 310, and insert13 ing the following new item: 

‘‘Sec. 310. Identification of trade enforcement priorities.’’. 

14 (g) TECHNICAL AMENDMENTS.—Section 141(e) of 

15 the Trade Act of 1974 (19 U.S.C. 2171(e)) is amended— 

16 (1) in paragraph (1), by striking ‘‘5314’’ and 

17 inserting ‘‘5315’’; and 

18 (2) in paragraph (2), by striking ‘‘the max19 imum rate of pay for grade GS–18, as provided in 

20 section 5332’’ and inserting ‘‘the maximum rate of 

21 pay for level IV of the Executive Schedule, as pro22 vided in section 5315’’. 


rfake on PROD1PC77 with BILLS
12 

•S 2467 PCS

1 TITLE II—INTERNATIONAL MON2 ETARY AND FINANCIAL POL3 ICY 

4 SEC. 201. SHORT TITLE. 

5 This title may be cited as the ‘‘International Mone6 tary and Financial Policy Cooperation Act of 2006’’. 

7 SEC. 202. FINDINGS. 

8 Congress finds as follows: 

9 (1) Section 3004 of the Omnibus Trade and 

10 Competitiveness Act of 1988 (22 U.S.C. 5304) re11 quires the Secretary of the Treasury to undertake 

12 multilateral or bilateral negotiations with countries 

13 that have material global current account surpluses 

14 and have significant bilateral trade surpluses with 

15 the United States if the Secretary considers that 

16 such a country is manipulating its currency for pur17 poses of preventing effective balance of payments ad18 justment or gaining unfair competitive advantage in 

19 international trade. 

20 (2) The global economy has changed dramati21 cally since 1988, with increased capital account 

22 openness, a sharp increase in the flow of funds 

23 internationally, and an ever growing number of 

24 emerging market economies becoming systemically 

25 important to the global flow of goods, services, and 


rfake on PROD1PC77 with BILLS
13 

•S 2467 PCS

1 capital. In addition, practices such as the mainte2 nance of multiple currency regimes have become 

3 rare. 

4 (3) As a result of the evolutionary changes in 

5 the international monetary and financial system, the 

6 1988 concept of currency manipulation appears in7 creasingly dated. 

8 (4) While some degree of surpluses and deficits 

9 in payments balances may be expected, particularly 

10 in response to increasing economic globalization, 

11 large and growing imbalances raise concerns of pos12 sible disruption to financial markets. In part, such 

13 imbalances often reflect exchange rate policies that 

14 foster fundamental misalignment of currencies. 

15 (5) Currencies in fundamental misalignment 

16 can seriously impair the ability of international mar17 kets to adjust appropriately to global capital and 

18 trade flows, threatening trade flows and causing eco19 nomic harm to the United States. 

20 (6) The effects of a fundamentally misaligned 

21 currency may be so harmful that it is essential to 

22 correct the fundamental misalignment without re23 gard to the purpose of any policy that contributed 

24 to the misalignment. 


rfake on PROD1PC77 with BILLS
14 

•S 2467 PCS

1 (7) Article IV of the International Monetary 

2 Fund Articles of Agreement states that in order to 

3 facilitate the exchange of goods, services, and capital 

4 among countries, to sustain sound economic growth, 

5 and to foster financial and economic stability, each 

6 member of the International Monetary Fund shall 

7 avoid manipulating exchange rates in order to pre8 vent effective balance of payments adjustment or to 

9 gain an unfair competitive advantage over other 

10 members. 

11 (8) The failure of a government to acknowledge 

12 a fundamental misalignment of its currency or to 

13 take steps to correct such a fundamental misalign14 ment, either through inaction or mere token action, 

15 is a form of exchange rate manipulation and is in16 consistent with that government’s obligations under 

17 Article IV of the International Monetary Fund Arti18 cles of Agreement. 

19 SEC. 203. DEFINITIONS. 

20 In this title: 

21 (1) SECRETARY.—The term ‘‘Secretary’’ means 

22 the Secretary of the Treasury. 

23 (2) FUNDAMENTAL MISALIGNMENT.—The term 

24 ‘‘fundamental misalignment’’ means a material sus25 tained disparity between the observed levels of an efVerDate Aug 31 2005 02:55 Mar 30, 2006 Jkt 049200 PO 00000 Frm 00014 Fmt 6652 Sfmt 6201 E:\BILLS\S2467.PCS S2467

rfake on PROD1PC77 with BILLS
15 

•S 2467 PCS

1 fective exchange rate for a currency and the cor2 responding levels of an effective exchange rate for 

3 that currency that would be consistent with funda4 mental macroeconomic conditions based on a gen5 erally accepted economic rationale. 

6 (3) EFFECTIVE EXCHANGE RATE.—The term 

7 ‘‘effective exchange rate’’ means a weighted average 

8 of bilateral exchange rates, expressed in either nomi9 nal or real terms. 

10 (4) GENERALLY ACCEPTED ECONOMIC RATION11 ALE.—The term ‘‘generally accepted economic ra12 tionale’’ means an explanation drawn on widely rec13 ognized macroeconomic theory for which there is a 

14 significant degree of empirical support. 

15 SEC. 204. REPEAL OF THE EXCHANGE RATES AND INTER16 NATIONAL ECONOMIC POLICY COORDINA17 TION ACT OF 1988. 

18 Subtitle A of title III of the Omnibus Trade and 

19 Competitiveness Act of 1988 (22 U.S.C. 5301–5306) is 

20 repealed. 

21 SEC. 205. ADVISORY COMMITTEE ON INTERNATIONAL MON22 ETARY AND FINANCIAL POLICY. 

23 (a) ESTABLISHMENT.— 

24 (1) IN GENERAL.—The President shall establish 

25 an Advisory Committee on International Monetary 


rfake on PROD1PC77 with BILLS
16 

•S 2467 PCS

1 and Financial Policy (in this title referred to as the 

2 ‘‘Committee’’) to advise the Secretary in the prepa3 ration of an annual report to Congress on Inter4 national Economic Policy and Currency Exchange 

5 Rates (described in section 206) and to otherwise 

6 advise the President with respect to international 

7 monetary and financial policy and the impact of the 

8 policy on the economy of the United States. 

9 (2) MEMBERSHIP.—The Committee shall be 

10 comprised of no more than 7 individuals drawn from 

11 outside of the Federal Government. Members of the 

12 Committee shall be recommended by the Secretary 

13 on the basis of their objectivity and demonstrated 

14 expertise in finance, economics, or currency ex15 change, and appointed by the President for a term 

16 of 4 years or until the Committee expires. An indi17 vidual may be reappointed to the Committee for ad18 ditional terms. Appointments to the Committee shall 

19 be made without regard to political affiliation. 

20 (b) DURATION OF COMMITTEE.—The Committee 

21 shall terminate on the date that is 4 years after the date 

22 of the enactment of this Act unless renewed by the Presi23 dent pursuant to section 14 of the Federal Advisory Com24 mittee Act (5 U.S.C. App.) for a subsequent 4-year period. 

25 The President may continue to renew the Committee for 


rfake on PROD1PC77 with BILLS
17 

•S 2467 PCS

1 successive 4-year periods by taking appropriate action 

2 prior to the date on which the Committee would otherwise 

3 terminate. 

4 (c) PUBLIC MEETINGS.—The Committee shall hold 

5 at least 1 public meeting each year for the purpose of ac6 cepting public comments. The Committee shall also meet 

7 as needed at the call of the Secretary or at the call of 

8 two-thirds of the members of the Committee. 

9 (d) CHAIRPERSON.—The Committee shall elect from 

10 among its members a chairperson for a term of 4 years 

11 or until the Committee terminates. A chairperson of the 

12 Committee may be reelected chairperson but is ineligible 

13 to serve consecutive terms as chairperson. 

14 (e) STAFF.—The Secretary shall make available to 

15 the Committee such staff, information, personnel, admin16 istrative services, and assistance as the Committee may 

17 reasonably require to carry out its activities. 

18 (f) APPLICATION OF FEDERAL ADVISORY COM19 MITTEE ACT.— 

20 (1) IN GENERAL.—The provisions of the Fed21 eral Advisory Committee Act (5 U.S.C. App.) apply 

22 to the Committee. 

23 (2) EXCEPTION.—Except for the annual public 

24 meeting required under subsection (c), meetings of 

25 the Committee shall be exempt from the requireVerDate Aug 31 2005 02:55 Mar 30, 2006 Jkt 049200 PO 00000 Frm 00017 Fmt 6652 Sfmt 6201 E:\BILLS\S2467.PCS S2467

rfake on PROD1PC77 with BILLS
18 

•S 2467 PCS

1 ments of subsections (a) and (b) of sections 10 and 

2 11 of the Federal Advisory Committee Act (relating 

3 to open meetings, public notice, public participation, 

4 and public availability of documents), whenever and 

5 to the extent it is determined by the President or the 

6 Secretary that such meetings will be concerned with 

7 matters the disclosure of which would seriously com8 promise the development by the United States Gov9 ernment of international monetary and financial pol10 icy. 

11 SEC. 206. REPORTING REQUIREMENTS. 

12 (a) REPORTS REQUIRED.— 

13 (1) IN GENERAL.—The Secretary, after con14 sulting with the Chairman of the Board of Gov15 ernors of the Federal Reserve System and the Com16 mittee, shall submit to Congress, on or before Octo17 ber 15 of each year, a written report on inter18 national economic policy and currency exchange 

19 rates. 

20 (2) INTERIM REPORT.—The Secretary, after 

21 consulting with the Chairman of the Board of Gov22 ernors of the Federal Reserve System and the Com23 mittee, shall submit to Congress, on or before April 

24 15 of each year, a written report on interim developVerDate Aug 31 2005 02:55 Mar 30, 2006 Jkt 049200 PO 00000 Frm 00018 Fmt 6652 Sfmt 6201 E:\BILLS\S2467.PCS S2467

rfake on PROD1PC77 with BILLS
19 

•S 2467 PCS

1 ments with respect to international economic policy 

2 and currency exchange rates. 

3 (b) CONTENTS OF REPORT.—Each report submitted 

4 under subsection (a) shall contain— 

5 (1) an analysis of currency market develop6 ments and the relationship between the United 

7 States dollar and the currencies of major economies 

8 and United States trading partners; 

9 (2) a review of the economic and financial poli10 cies of major economies and United States trading 

11 partners and an evaluation of how such policies im12 pact currency exchange rates; 

13 (3) a description of any currency intervention 

14 by the United States or other major economies or 

15 United States trading partners, or other actions un16 dertaken to adjust the actual exchange rate of the 

17 dollar; 

18 (4) an evaluation of the factors that underlie 

19 conditions in the currency markets, including— 

20 (A) monetary and financial conditions; 

21 (B) foreign exchange reserve accumulation; 

22 (C) macroeconomic trends; 

23 (D) trends in current and financial ac24 count balances; 


rfake on PROD1PC77 with BILLS
20 

•S 2467 PCS

1 (E) the size, composition, and growth of 

2 international capital flows; 

3 (F) the impact of the external sector on 

4 economic growth; 

5 (G) the size and growth of external indebt6 edness; 

7 (H) trends in the net level of international 

8 investment; and 

9 (I) capital controls, trade, and exchange 

10 restrictions; 

11 (5) a list of currencies of the major economies 

12 or economic areas that are in fundamental misalign13 ment (as defined in section 203(2)), and a descrip14 tion of any economic models or methodologies used 

15 to establish the list; 

16 (6) a description of any reason or circumstance 

17 that accounts for why each currency identified under 

18 paragraph (5) is in fundamental misalignment based 

19 on a generally accepted economic rationale; 

20 (7) a list of each currency identified under 

21 paragraph (5) for which the fundamental misalign22 ment causes, or contributes to, a material adverse 

23 impact on the economy of the United States, includ24 ing a description of any reason or circumstance that 


rfake on PROD1PC77 with BILLS
21 

•S 2467 PCS

1 explains why the fundamental misalignment is not 

2 accounted for under paragraph (6); and 

3 (8) the results of any prior consultations con4 ducted or other steps taken pursuant to section 207. 

5 (c) DEVELOPMENT OF REPORT.—The Secretary shall 

6 consult with the Chairman of the Board of Governors of 

7 the Federal Reserve System and the Committee with re8 spect to the preparation of each report required under 

9 subsection (a). Any comments provided by the Chairman 

10 of the Board of Governors of the Federal Reserve System 

11 and the Committee shall be submitted to the Secretary 

12 not later than the date that is 15 days before the date 

13 each report is due under subsection (a). The Secretary 

14 shall submit the report after taking into account all com15 ments received. 

16 SEC. 207. SUBSEQUENT ACTIONS. 

17 (a) NEGOTIATIONS AND CONSULTATIONS.—With re18 spect to each currency identified under section 206(b)(7), 

19 the Secretary shall— 

20 (1) seek to enter into bilateral consultations 

21 with the government responsible for the currency in 

22 order to facilitate the adoption of appropriate poli23 cies to eliminate the fundamental misalignment; 

24 (2) seek the advice of the International Mone25 tary Fund with respect to the Secretary’s findings in 


rfake on PROD1PC77 with BILLS
22 

•S 2467 PCS

1 the report submitted to Congress under section 206; 

2 and 

3 (3) encourage other governments, whether bilat4 erally or in appropriate multinational fora, to join 

5 the United States in seeking the adoption of appro6 priate policies by such government to eliminate the 

7 fundamental misalignment. 

8 (b) ADDITIONAL ACTION.— 

9 (1) IN GENERAL.—If, not later than 60 days 

10 after the date on which a currency is identified 

11 under section 206(b)(7), the government responsible 

12 for such currency fails to enter into bilateral con13 sultations with the United States in order to facili14 tate the adoption of appropriate policies to eliminate 

15 the fundamental misalignment, the following shall 

16 apply until a notification described in paragraph (2) 

17 is provided to Congress: 

18 (A) The Overseas Private Investment Cor19 poration shall not approve any new financing 

20 (including insurance, reinsurance, or guarantee) 

21 with respect to a project located within the ter22 ritory governed by such government. 

23 (B) The Secretary shall instruct the 

24 United States Executive Director at each multi25 lateral bank to oppose the approval of any new 


rfake on PROD1PC77 with BILLS
23 

•S 2467 PCS

1 financing (including loans, other credits, insur2 ance, reinsurance, or guarantee) to such gov3 ernment or for a project within the territory 

4 governed by such government. 

5 (C) The United States shall request that 

6 the International Monetary Fund engage in dis7 cussions with such government, including 

8 through special consultations, if appropriate, in 

9 order to facilitate the adoption of appropriate 

10 policies to eliminate the fundamental misalign11 ment. 

12 (2) NOTIFICATION.—The Secretary shall 

13 promptly notify Congress when bilateral consulta14 tions are initiated with a government pursuant to 

15 this subsection, and shall cause such notice to be 

16 published in the Federal Register. 

17 (c) FAILURE TO ADOPT CHANGES.— 

18 (1) IN GENERAL.—Not later than 180 days 

19 after the date on which a currency is identified 

20 under section 206(b)(7), the Secretary shall deter21 mine whether the government responsible for such 

22 currency has failed to adopt appropriate policies to 

23 eliminate the fundamental misalignment, and shall 

24 promptly report such determination to Congress. If 

25 the Secretary determines that the government reVerDate Aug 31 2005 02:55 Mar 30, 2006 Jkt 049200 PO 00000 Frm 00023 Fmt 6652 Sfmt 6201 E:\BILLS\S2467.PCS S2467

rfake on PROD1PC77 with BILLS
24 

•S 2467 PCS

1 sponsible for such currency has failed to adopt ap2 propriate policies to eliminate the fundamental mis3 alignment, the following shall apply until a notifica4 tion described in paragraph (2) is provided to Con5 gress: 

6 (A) The Overseas Private Investment Cor7 poration shall not approve any new financing 

8 (including insurance, reinsurance, or guarantee) 

9 with respect to a project located within the ter10 ritory governed by such government. 

11 (B) The Secretary shall instruct the 

12 United States Executive Director at each multi13 lateral bank to oppose the approval of any new 

14 financing (including loans, other credits, insur15 ance, reinsurance, or guarantee) to such gov16 ernment or for a project within the territory 

17 governed by such government. 

18 (C) The United States shall inform the 

19 Managing Director of the International Mone20 tary Fund of the failure of such government to 

21 address a fundamental misalignment of its cur22 rency that is causing a material adverse impact 

23 on the economy of the United States, and shall 

24 request that the Managing Director of the 

25 International Monetary Fund consult with such 


rfake on PROD1PC77 with BILLS
25 

•S 2467 PCS

1 government regarding the observance of the 

2 government’s obligations under Article IV of 

3 the International Monetary Fund Articles of 

4 Agreement, including through special consulta5 tions, if necessary, and formally report the re6 sults of such consultations to the Executive 

7 Board of the International Monetary Fund 

8 within 180 days of the date of such request. 

9 (2) NOTIFICATION.—The Secretary shall 

10 promptly notify Congress when such government 

11 adopts appropriate policies to eliminate the funda12 mental misalignment, and shall cause such notice to 

13 be published in the Federal Register. 

14 (3) WAIVER.—The President may waive any ac15 tion provided for under this subsection if the Presi16 dent determines that it is in the vital economic inter17 est of the United States to do so. The President 

18 shall promptly notify Congress of such determination 

19 (and the reasons for the determination) and shall 

20 cause such notice to be published in the Federal 

21 Register. 

22 SEC. 208. INTERNATIONAL FINANCIAL INSTITUTION GOV23 ERNANCE ARRANGEMENTS. 

24 (a) INITIAL REVIEW.—Notwithstanding any other 

25 provision of law, before the United States approves a proVerDate Aug 31 2005 02:55 Mar 30, 2006 Jkt 049200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6201 E:\BILLS\S2467.PCS S2467

rfake on PROD1PC77 with BILLS
26 

•S 2467 PCS

1 posed change in the governance arrangement of any inter2 national financial institution, as defined in section 

3 1701(c)(2) of the International Financial Institutions Act 

4 (22 U.S.C. 262r(c)(2)), the Secretary shall determine 

5 whether any member of the international financial institu6 tion that would benefit from the proposed change, in the 

7 form of increased voting shares or representation, has a 

8 currency that is in fundamental misalignment, and if so, 

9 whether the fundamental misalignment causes or contrib10 utes to a material adverse impact on the economy of the 

11 United States. The determination shall be reported to 

12 Congress. 

13 (b) SUBSEQUENT ACTION.—The United States shall 

14 oppose any proposed change in the governance arrange15 ment of any international financial institution (as defined 

16 in subsection (a)), if the Secretary renders an affirmative 

17 determination pursuant to subsection (a). 

18 (c) FURTHER ACTION.—The United States shall con19 tinue to oppose any proposed change in the governance 

20 arrangement of an international financial institution, pur21 suant to subsection (b), until the Secretary determines 

22 and reports to Congress that the currency of each member 

23 of the international financial institution that would benefit 

24 from the proposed change, in the form of increased voting 


rfake on PROD1PC77 with BILLS
27 

•S 2467 PCS

1 shares or representation, is not in fundamental misalign2 ment. 

3 SEC. 209. NONMARKET ECONOMY STATUS. 

4 (a) IN GENERAL.—Paragraph (18)(B)(vi) of section 

5 771 of the Tariff Act of 1930 (19 U.S.C. 1677(18)(B)(vi)) 

6 is amended by inserting before the end period the fol7 lowing: ‘‘, including whether the currency of the foreign 

8 country has been identified pursuant to section 206(b)(7) 

9 of the International Monetary and Financial Policy Co10 operation Act of 2006 in any written report required by 

11 section 206(a) of such Act during the 24-month period 

12 immediately preceding the month during which the admin13 istering authority seeks to revoke a determination that 

14 such foreign country is a nonmarket economy country’’. 

15 (b) TERMINATION.—The amendment made by this 

16 section shall be in effect during the 10-year period begin17 ning on the date of the enactment of this Act. 

18 SEC. 210. ADDITIONAL ASSISTANT SECRETARY. 

19 (a) IN GENERAL.— 

20 (1) ADDITIONAL ASSISTANT SECRETARY.—Sec21 tion 5315 of title 5, United States Code, is amended 

22 by striking ‘‘(8)’’ in the item relating to Assistant 

23 Secretaries of the Treasury, and inserting ‘‘(9)’’. 

24 (2) DUTIES AND RESPONSIBILITIES.—In desig25 nating the duties, responsibilities, and title of the 


rfake on PROD1PC77 with BILLS
28 

•S 2467 PCS

1 Assistant Secretary of the Treasury established pur2 suant to paragraph (1), the Secretary may redesig3 nate, in whole or in part, the duties, responsibilities, 

4 and title of any position of Assistant Secretary of 

5 the Treasury in existence on the day before the date 

6 of the enactment of this Act. 

7 (b) CONTINUATION IN OFFICE.—The individual serv8 ing as Assistant Secretary for International Affairs in the 

9 Office of International Affairs of the Department of the 

10 Treasury on the day before the date of the enactment of 

11 this Act may serve in any position designated or redesig12 nated pursuant to subsection (a) until the date a person 

13 nominated to such position by the President is confirmed 

14 by the United States Senate. 

15 TITLE III—AUTHORIZATION OF 

16 APPROPRIATIONS 

17 SEC. 301. OFFICE OF THE UNITED STATES TRADE REP18 RESENTATIVE. 

19 Section 141(g)(1)(A) of the Trade Act of 1974 (19 

20 U.S.C. 2171(g)(1)(A)) is amended by striking clauses (i) 

21 and (ii) and inserting the following: 

22 ‘‘(i) $47,800,000 for fiscal year 2007. 

23 ‘‘(ii) $49,700,000 for fiscal year 2008.’’. 


rfake on PROD1PC77 with BILLS

rfake on PROD1PC77 with BILLS
Calendar No. 381 

109TH CONGRESS 

2D SESSION S. 2467 

A BILL 

To enhance and improve the trade relations of the 

other purposes. rules and norms of international trade, and for United States trading partners to adhere to the trade enforcement efforts and encouraging United States by strengthening United States 

MARCH 29, 2006 

Read the second time and placed on the calendar 


rfake on PROD1PC77 with BILLS