II 

109TH CONGRESS 

1ST SESSION S. 355 

To require Congress to impose limits on United States foreign debt. 

IN THE SENATE OF THE UNITED STATES 

FEBRUARY 10, 2005 

Mr. DORGAN (for himself and Mrs. CLINTON) introduced the following bill; 

which was read twice and referred to the Committee on Foreign Relations 

A BILL

To require Congress to impose limits on United States 

foreign debt.

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 ‘‘Foreign Debt Ceiling 

5 Act of 2005’’. 

6 SEC. 2. FOREIGN DEBT CEILING. 

7 (a) FINDINGS.—Congress makes the following find8 ings: 

9 (1) The United States has become the world’s 

10 largest net debtor Nation, having run up massive 

11 trade deficits since the 1990s. 
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1 (2) At the end of 2002, the net United States 

2 foreign debt stood at $2,553,000,000,000. 

3 (3) The United States foreign debt position 

4 worsened in 2003, when the United States had a 

5 record trade deficit of $489,000,000,000, equivalent 

6 to 4.4 percent of the United States GDP that year. 

7 (4) The large and growing United States for8 eign debt represents claims on United States assets 

9 by foreign nationals, which will eventually have to be 

10 repaid. If unchecked, the foreign debt could seriously 

11 undermine our children’s future standard of living. 

12 (5) Moreover, the growing accumulation of for13 eign claims on United States assets, including over 

14 $1,200,000,000,000 in United States Treasury secu15 rities, makes the United States economy vulnerable 

16 to the whims of foreign investors. 

17 (6) Congress presently places a ceiling on 

18 United States public debt, but does not place a ceil19 ing on United States foreign debt. 

20 (7) Just as Congress recognized the importance 

21 of placing a ceiling on the United States public debt, 

22 it is appropriate that Congress place a limit on the 

23 United States foreign debt. 

24 (b) ACTIONS TRIGGERED BY UNITED STATES FOR25 EIGN DEBT.— 
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1 (1) IN GENERAL.—Not later than the 15th day 

2 of the second month after the date of enactment of 

3 this Act, and every 3 months thereafter, the United 

4 States Trade Representative shall determine if— 

5 (A) the net United States foreign debt for 

6 the preceding 12-month period is more than 25 

7 percent of United States GDP for the same pe8 riod; or 

9 (B) the United States trade deficit for the 

10 preceding 12-month period is more than 5 per11 cent of United States GDP for the same period. 

12 (2) ACTION BY USTR.—Whenever an affirma13 tive determination is made under paragraph (1) (A) 

14 or (B), the United States Trade Representative 

15 shall— 

16 (A) within 15 days of the determination, 

17 convene an emergency meeting of the Trade 

18 Policy Review Group to develop a plan of action 

19 to reduce the United States trade deficit; and 

20 (B) within 45 days of the determination, 

21 present to Congress a report detailing the 

22 Trade Policy Review Group’s trade deficit re23 duction plan. 

24 (c) MEASUREMENT OF FOREIGN DEBT.— 
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1 (1) STATISTICAL SOURCES.—For purposes of 

2 the calculations described in subsection (b)(1), the 

3 United States Trade Representative shall rely on the 

4 most recent period for which the following data, 

5 published by the Department of Commerce, is avail6 able: 

7 (A) In the case of United States foreign 

8 debt, the United States Trade Representative 

9 shall use the net international investment posi10 tion of the United States, with direct invest11 ment positions determined at market value, as 

12 compiled by the Bureau of Economic Analysis. 

13 (B) In the case of the United States trade 

14 deficit, the United States Trade Representative 

15 shall use the goods and services trade deficit 

16 data compiled by the United States Census Bu17 reau. 

18 (C) In the case of the United States GDP, 

19 the United States Trade Representative shall 

20 use the nominal gross domestic product data 

21 compiled by the Bureau of Economic Analysis. 

22 (2) ADJUSTMENT.—The United States Trade 

23 Representative may adjust the data described in 
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1 paragraph (1) to ensure that the determination is 

2 made for comparable time period.

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