II 

109TH CONGRESS 

2D SESSION S. 2317 

To amend the Trade Act of 1974 to require the United States Trade Representative to identify trade enforcement priorities and to take action 

with respect to priority foreign country trade practices, and for other 

purposes. 

IN THE SENATE OF THE UNITED STATES 

FEBRUARY 16, 2006 

Mr. BAUCUS (for himself, Mr. HATCH, and Ms. STABENOW) introduced the 

following bill; which was read twice and referred to the Committee on Finance 

A BILL 

To amend the Trade Act of 1974 to require the United 

States Trade Representative to identify trade enforcement priorities and to take action with respect to priority 

foreign country trade practices, 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 ‘‘Trade Competitiveness 

5 Act of 2006’’. 
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1 SEC. 2. IDENTIFICATION OF TRADE ENFORCEMENT PRIOR2 ITIES. 

3 (a) IN GENERAL.—Title III of the Trade Act of 1974 

4 (19 U.S.C. 2411 et seq.) is amended by adding at the end 

5 the following: 

6 ‘‘SEC. 311. IDENTIFICATION OF TRADE ENFORCEMENT PRI7 ORITIES. 

8 ‘‘(a) IDENTIFICATION AND ANNUAL REPORT.— 

9 ‘‘(1) IN GENERAL.—Within 75 days after the 

10 submission of the report required by section 181(b), 

11 the United States Trade Representative shall annu12 ally— 

13 ‘‘(A) identify United States trade enforce14 ment priorities; 

15 ‘‘(B) identify enforcement actions that the 

16 Trade Representative has taken during the pre17 vious year and review the impact these enforce18 ment actions have had in addressing foreign 

19 trade barriers; 

20 ‘‘(C) identify priority foreign country trade 

21 practices on which the Trade Representative 

22 will focus its enforcement efforts; and 

23 ‘‘(D) submit to the Committee on Finance 

24 of the Senate and the Committee on Ways and 

25 Means of the House of Representatives and 

26 publish in the Federal Register a report on the 
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1 priorities, actions, and practices identified in 

2 subparagraphs (A), (B), and (C). 

3 ‘‘(2) FACTORS TO CONSIDER.—In identifying 

4 priority foreign country trade practices under para5 graph (1), the Trade Representative shall focus on 

6 those practices, the elimination of which is likely to 

7 have the most significant potential to increase 

8 United States economic growth, either directly or 

9 through the establishment of a beneficial precedent. 

10 The Trade Representative shall take into account all 

11 relevant factors, including— 

12 ‘‘(A) the major barriers and trade dis13 torting practices described in the most recent 

14 available National Trade Estimate Report re15 quired under section 181(b); 

16 ‘‘(B) the findings and practices described 

17 in the most recent available report required 

18 under— 

19 ‘‘(i) section 182; 

20 ‘‘(ii) section 1377 of the Omnibus 

21 Trade and Competitiveness Act of 1988; 

22 ‘‘(iii) section 3005 of the Omnibus 

23 Trade and Competitiveness Act of 1988; 

24 ‘‘(iv) section 421 of the Act entitled 

25 ‘An Act to authorize extension of non-
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1 discriminatory treatment (normal trade re2 lations treatment) to the People’s Republic 

3 of China, and to establish a framework for 

4 relations between the United States and 

5 the People’s Republic of China’ (22 U.S.C. 

6 6951); and 

7 ‘‘(v) any other report prepared by the 

8 Trade Representative or any other agency 

9 relating to international trade and invest10 ment; 

11 ‘‘(C) the trade agreements to which a for12 eign country is a party and its compliance with 

13 those agreements; 

14 ‘‘(D) the medium- and long-term implica15 tions of foreign government procurement plans; 

16 and 

17 ‘‘(E) the international competitive position 

18 and export potential of United States products 

19 and services. 

20 ‘‘(3) OTHER ITEMS IN REPORT.—The Trade 

21 Representative may include in the report a descrip22 tion of foreign country trade practices that may in 

23 the future warrant identification as a priority for24 eign country trade practice. 
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1 ‘‘(4) PRIORITIES NOT IDENTIFIED.—If the 

2 Trade Representative does not identify a priority 

3 foreign country trade practice in the report required 

4 under paragraph (1), the Trade Representative shall 

5 set out in detail in that report the reasons for failing 

6 to do so. 

7 ‘‘(b) CONSULTATION.— 

8 ‘‘(1) IN GENERAL.—Not later than 45 days 

9 after the submission of the report required by sec10 tion 181(b), the Trade Representative shall consult 

11 with the Committee on Finance of the Senate and 

12 the Committee on Ways and Means of the House of 

13 Representatives with respect to the priorities, ac14 tions, and practices to be identified in the report 

15 under subsection (a). 

16 ‘‘(2) VOTE OF COMMITTEE.—If, as a result of 

17 the consultations described in paragraph (1), either 

18 the Committee on Finance of the Senate or the 

19 Committee on Ways and Means of the House of 

20 Representatives requests identification of a priority 

21 foreign country trade practice by majority vote of ei22 ther Committee, the Trade Representative shall in23 clude such identification in its annual report. 

24 ‘‘(3) DETERMINATION NOT TO INCLUDE PRI25 ORITY FOREIGN COUNTRY TRADE PRACTICES.—The 
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1 Trade Representative may determine not to include 

2 the priority foreign country trade practice requested 

3 under paragraph (2) in its annual report only if the 

4 Trade Representative finds that— 

5 ‘‘(A) such practice is already being ad6 dressed under provisions of United States trade 

7 law, under the Uruguay Round Agreements (as 

8 defined in section 2(7) of the Uruguay Round 

9 Agreements Act (19 U.S.C. 3501(7))), under 

10 any bilateral or regional trade agreement, or as 

11 part of trade negotiations with that foreign 

12 country or other countries, and progress is 

13 being made toward the elimination of such 

14 practice; or 

15 ‘‘(B) identification of such practice as a 

16 priority foreign country trade practice would be 

17 contrary to the interests of United States trade 

18 policy. 

19 ‘‘(4) REASONS FOR DETERMINATION.—In the 

20 case of a determination made pursuant to paragraph 

21 (3), the Trade Representative shall set forth in de22 tail the reasons for that determination in the report 

23 required under subsection (a)(1). 

24 ‘‘(c) INVESTIGATION AND RESOLUTION.— 
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1 ‘‘(1) IN GENERAL.—Upon submission of the re2 port required by subsection (a), the Trade Rep3 resentative shall, with respect to any priority foreign 

4 country trade practice identified, seek satisfactory 

5 resolution with the country concerned under the aus6 pices of the World Trade Organization, pursuant to 

7 a bilateral or regional trade agreement to which the 

8 United States is a party, or by any other means. A 

9 satisfactory resolution may include elimination of the 

10 practice or, if not feasible, providing for compen11 satory trade benefits. 

12 ‘‘(2) CONSULTATIONS; INVESTIGATIONS.—Not 

13 later than 120 days after the transmission of the re14 port required under subsection (a), the Trade Rep15 resentative shall, with respect to any priority foreign 

16 country trade practice identified— 

17 ‘‘(A) initiate dispute settlement consulta18 tions in the World Trade Organization; 

19 ‘‘(B) initiate dispute settlement consulta20 tions under the applicable provisions of any bi21 lateral or regional trade agreement to which the 

22 United States is a party; 

23 ‘‘(C) initiate an investigation under section 

24 302(b)(1) of this Act; 
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1 ‘‘(D) seek to negotiate an agreement that 

2 provides for the elimination of the priority for3 eign country trade practice or, if elimination of 

4 the practice is not feasible, an agreement that 

5 provides for compensatory trade benefits; or 

6 ‘‘(E) take any additional action necessary 

7 to eliminate the priority foreign country trade 

8 practice. 

9 ‘‘(3) REPORT.—On the day the Trade Rep10 resentative takes action under subparagraph (E) of 

11 paragraph (2), the Trade Representative shall trans12 mit to Congress a report describing the action and 

13 the reasons for taking the actions. If the Trade Rep14 resentative takes action under subparagraph (E) of 

15 paragraph (2), the Trade Representative shall state 

16 in detail the reasons the Trade Representative did 

17 not take action under subparagraphs (A) through 

18 (D) of such paragraph. 

19 ‘‘(d) ADDITIONAL REPORTING.—The Trade Rep20 resentative shall report to the Committee on Finance of 

21 the Senate and the Committee on Ways and Means of the 

22 House of Representatives every 6 months on the progress 

23 being made to realize the trade enforcement priorities 

24 identified in subsection (a)(1)(A) and the steps being 
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1 taken to address the priority foreign country trade prac2 tices identified in subsection (a)(1)(C).’’. 

3 (b) CONFORMING AMENDMENT.—The table of con4 tents for the Trade Act of 1974 is amended by inserting 

5 after the item relating to section 310, the following new 

6 item: 

‘‘Sec. 311. Identification of trade enforcement priorities.’’. 

7 SEC. 3. ESTABLISHMENT OF POSITION OF CHIEF TRADE 

8 ENFORCEMENT OFFICER. 

9 (a) ESTABLISHMENT OF POSITION.—Section 

10 141(b)(2) of the Trade Act of 1974 (19 U.S.C. 

11 2171(b)(2)) is amended to read as follows: 

12 ‘‘(2) There shall be in the Office 3 Deputy 

13 United States Trade Representatives, 1 Chief Agri14 cultural Negotiator, and 1 Chief Trade Enforcement 

15 Officer. The 3 Deputy United States Trade Rep16 resentatives, the Chief Agricultural Negotiator, and 

17 the Chief Trade Enforcement Officer shall be ap18 pointed by the President, by and with the advice and 

19 consent of the Senate. As an exercise of the rule20 making of the Senate, any nomination of a Deputy 

21 United States Trade Representative, the Chief Agri22 cultural Negotiator, or the Chief Trade Enforcement 

23 Officer submitted to the Senate for its advice and 

24 consent, and referred to a committee, shall be re25 ferred to the Committee on Finance. Each Deputy 
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1 United States Trade Representative, the Chief Agri2 cultural Negotiator, and the Chief Trade Enforce3 ment Officer shall hold office at the pleasure of the 

4 President and shall have the rank of Ambassador.’’. 

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

6 Trade Act of 1974 (19 U.S.C. 2171(c)) is amended by 

7 adding at the end the following new paragraph: 

8 ‘‘(6) The principal function of the Chief Trade 

9 Enforcement Officer shall be to ensure that United 

10 States trading partners comply with trade agree11 ments to which the United States is a party. The 

12 Chief Trade Enforcement Officer shall assist the 

13 United States Trade Representative in investigating 

14 and prosecuting disputes before the World Trade 

15 Organization, and pursuant to other trade agree16 ments to which the United States is a party, and 

17 shall assist the United States Trade Representative 

18 in carrying out the Trade Representative’s functions 

19 under subsection (d). The Chief Trade Enforcement 

20 Officer shall make recommendations with respect to 

21 the administration of United States trade laws relat22 ing to foreign government barriers to United States 

23 goods, services, intellectual property, government 

24 procurement, and other trade matters. The Chief 

25 Trade Enforcement Officer shall perform such other 
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1 functions as the United States Trade Representative 

2 may direct.’’. 

3 (c) COMPENSATION.—Section 5314 of title 5, United 

4 States Code, is amended by inserting ‘‘Chief Trade En5 forcement Officer’’ as a new item after ‘‘Negotiator’’. 

6 SEC. 4. TRADE ENFORCEMENT WORKING GROUP. 

7 (a) ESTABLISHMENT.—Not later than 90 days after 

8 the date of the enactment of this Act, the United States 

9 Trade Representative shall establish an interagency Trade 

10 Enforcement Working Group (in this section referred to 

11 as the ‘‘Working Group’’) which shall be chaired by the 

12 Chief Trade Enforcement Officer of the Office of the 

13 United States Trade Representative. 

14 (b) MEMBERSHIP.—The Working Group shall include 

15 representatives from the Departments of Commerce, State 

16 Treasury, Agriculture, and such other departments and 

17 agencies as the United States Trade Representative con18 siders appropriate. 

19 (c) RESPONSIBILITY.—It shall be the responsibility 

20 of the Working Group to assist the Chief Trade Enforce21 ment Officer in carrying out the principle functions de22 scribed in section 141(c)(6) of the Trade Act of 1974. 
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1 SEC. 5. SENSE OF CONGRESS REGARDING EXCHANGE 

2 RATES AND IMF REFORM. 

3 (a) FINDINGS.—The Congress makes the following 

4 findings: 

5 (1) The global economy today is characterized 

6 by massive imbalances that risk substantial disrup7 tion to global economic growth. 

8 (2) The United States current account deficit is 

9 at the heart of these global economic imbalances, 

10 predicted to reach $800,000,000,000 in 2005. 

11 (3) A current account deficit of this size is 

12 unsustainable and threatens the global economy with 

13 disruption and recession. 

14 (4) Policies to manipulate exchange rates help 

15 drive global economic imbalances and the United 

16 States current account deficit. 

17 (5) Asian central banks appear to manipulate 

18 their currency through protracted, large-scale inter19 vention in currency markets, largely concentrated in 

20 United States dollar assets. 

21 (6) The policies of Asian central banks keep 

22 Asian currencies from appreciating meaningfully 

23 against the dollar. 

24 (7) Protracted, large-scale intervention in inter25 national currency markets runs counter to Article 

26 IV, section 1, paragraph (iii) of the International 
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1 Monetary Fund Articles of Agreement and the Gen2 eral Principles governing the Article as adopted by 

3 the International Monetary Fund Executive Board. 

4 (8) A principal function of the International 

5 Monetary Fund is to monitor exchange rate regimes 

6 and to act to prevent sustained currency market ma7 nipulation like that seen today in Asia. 

8 (9) The United States is the largest shareholder 

9 in the International Monetary Fund and is therefore 

10 best positioned to urge the International Monetary 

11 Fund to enforce its provisions on exchange rate poli12 cies. 

13 (10) The Department of the Treasury has to 

14 date not been successful in urging the International 

15 Monetary Fund to enforce Article IV, section 1, 

16 paragraph (iii) of the International Monetary Fund 

17 Articles of Agreement. 

18 (b) SENSE OF THE CONGRESS.— 

19 (1) EXCHANGE RATE INTERVENTION.—It is the 

20 sense of the Congress that— 

21 (A) the President should instruct the 

22 United States Executive Director to the Inter23 national Monetary Fund to request the Man24 aging Director of the Fund to use more aggres25 sively the Fund’s power to request consultations 
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1 with any member country regarding that coun2 try’s exchange rate policies. The purpose of the 

3 consultations is to determine, and recommend 

4 remedial action (if necessary), in a transparent 

5 manner— 

6 (i) the extent of a country’s direct or 

7 indirect intervention in currency markets 

8 for purposes contrary to the Articles of 

9 Agreement of the International Monetary 

10 Fund; 

11 (ii) the effects of the intervention on 

12 the value of the currencies on member 

13 countries; and 

14 (iii) the effects of the interventions on 

15 international economic imbalances; and 

16 (B) the President should instruct the 

17 United States Executive Director to the Inter18 national Monetary Fund to propose that the 

19 International Monetary Fund issue a semi-an20 nual report on exchange rate policies that ad21 dresses all cases of large-scale intervention in 

22 international currency markets, determines the 

23 effect of these interventions on exchange rates, 

24 and proposes remedial action to curtail such 

25 practices. 
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1 (2) REFORM OF THE INTERNATIONAL MONE2 TARY FUND.—It is the sense of the Congress that 

3 the President should support efforts to reform the 

4 International Monetary Fund to facilitate greater 

5 vigilance over global exchange rates, and to ensure 

6 the governance structure of the International Mone7 tary Fund represents the global economy, by in8 structing the United States Executive Director to 

9 the International Monetary Fund to— 

10 (A) lead a sustained and cooperative effort 

11 to reform the International Monetary Fund Ex12 ecutive Board to better represent large emerg13 ing economies, including those in Asia; 

14 (B) lead a sustained and cooperative effort 

15 to reform the weighted votes of Member States 

16 to better represent the significance of large 

17 emerging economies, including those in Asia; 

18 and 

19 (C) lead a comprehensive effort to review 

20 and improve the transparency of the Inter21 national Monetary Fund, including publication 

22 of member country data and information re23 lated to exchange rate policies. 
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1 SEC. 6. INFORMATION AND ADVICE FROM PRIVATE AND 

2 PUBLIC SECTORS. 

3 Section 135 of the Trade Act of 1974 (19 U.S.C. 

4 2155) is amended— 

5 (1) in subsection (a)(1)— 

6 (A) by striking ‘‘and’’ at the end of sub7 paragraph (B); 

8 (B) by striking the period at the end of 

9 subparagraph (C) and inserting ‘‘; and’’; and 

10 (C) by adding at the end the following: 

11 ‘‘(D) preventing the loss of Federal and 

12 State sovereignty in the negotiation, implemen13 tation, and enforcement of a trade agreement.’’; 

14 (2) in subsection (a)(2), by adding at the end 

15 the following: 

16 ‘‘(E) The prevention of the loss of Federal 

17 and State sovereignty during the negotiation, 

18 implementation, and enforcement of trade 

19 agreements.’’; 

20 (3) in subsection (e)(1), in the first sentence, by 

21 inserting before the end period the following: ‘‘, in22 cluding an assessment of the effect of the trade 

23 agreement on Federal and State sovereignty and the 

24 extent to which State and local governments were 

25 consulted in the negotiation of the free trade agree26 ment’’; and 
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1 (4) in subsection (e)(2), after ‘‘United States’’, 

2 by inserting the following: ‘‘, maintains Federal and 

3 State sovereignty,’’. 

4 SEC. 7. SENSE OF CONGRESS REGARDING SOVEREIGNTY. 

5 (a) FINDINGS.—The Congress makes the following 

6 findings: 

7 (1) America’s economic growth and prosperity 

8 is best served by embracing strategies to open fair 

9 global markets, investing in innovative research and 

10 technologies that create the industries and jobs, and 

11 engaging in, rather than being isolated from, the 

12 challenges of international competition in an increas13 ingly interconnected world. 

14 (2) The overall negotiating objectives of our 

15 Nation in negotiating trade agreements and treaties 

16 includes economic growth, employment creation, sus17 tainable development, and improvements to living 

18 standards and market opportunities. 

19 (3) Another primary responsibility of the 

20 United States Government is to ensure that Federal 

21 and State laws are not usurped by foreign govern22 ments or organizations. 

23 (4) A World Trade Organization (WTO) panel 

24 recently concluded that United States prohibitions 

25 on Internet gambling violate the United States com-
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1 mitments under the WTO. Specifically, the panel 

2 found that Federal and State gambling laws of the 

3 United States that prohibit companies located in An4 tigua and Barbuda from providing Internet gam5 bling services to United States consumers conflict 

6 with international trade obligations under the Gen7 eral agreement on Trade in Services (GATS). 

8 (b) SENSE OF CONGRESS.—It is the sense of the 

9 Congress that— 

10 (1) in addition to the overall trade negotiating 

11 objectives of the United States relating to economic 

12 growth, employment creation, sustainable develop13 ment, and improvement to living standards and mar14 ket opportunities, the United States policy should be 

15 to prevent the loss of Federal and State sovereignty 

16 in the negotiation, implementation, and enforcement 

17 of any trade agreement; and 

18 (2) laws that State and local governments have 

19 validly adopted, that are constitutional, and that re20 flect locally appropriate responses to the needs of 

21 State and local governments and residents, should 

22 not be overridden by provisions in trade agreements. 
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1 SEC. 8. AUTHORIZATION OF APPROPRIATIONS. 

2 There is authorized to be appropriate $5,000,000 to 

3 the United States Trade Representative to carry out the 

4 provisions of this Act. 

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