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106TH CONGRESS

1ST SESSION H. R. 577

To encourage the People’s Republic of China to join the World Trade Organization by removing China from title IV of the Trade Act of 1974

upon its accession to the World Trade Organization and to provide

a more effective remedy for inadequate trade benefits extended by the

People’s Republic of China to the United States.

IN THE HOUSE OF REPRESENTATIVES

FEBRUARY 4, 1999

Mr. BEREUTER (for himself, Mr. EWING, and Mr. PICKERING) introduced the

following bill; which was referred to the Committee on Ways and Means

A BILL

To encourage the People’s Republic of China to join the

World Trade Organization by removing China from title

IV of the Trade Act of 1974 upon its accession to

the World Trade Organization and to provide a more

effective remedy for inadequate trade benefits extended

by the People’s Republic of China to the United States.

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 ‘‘China Market Access

5 and Export Opportunities Act of 1999’’.
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1 SEC. 2. STATEMENT OF PURPOSE.

2 It is the purpose of this Act—

3 (1) to authorize the President of the United

4 States to raise tariffs on imports from the People’s

5 Republic of China to tariff levels in effect on Decem6 ber 31, 1994, if the President determines, as of Jan7 uary 1, 2001, that the People’s Republic of China is

8 either denying adequate trade benefits to the United

9 States or not taking steps to become a full member

10 of the World Trade Organization;

11 (2) to provide a significant incentive for the

12 People’s Republic of China to gain admission to the

13 World Trade Organization by eliminating the annual

14 review of China’s trade status after it commits to a

15 commercially acceptable protocol and is admitted to

16 the World Trade Organization; and

17 (3) therefore to enhance the ability of the Presi18 dent of the United States to negotiate a commer19 cially acceptable World Trade Organization protocol

20 with the People’s Republic of China.

21 SEC. 3. SNAP-BACK MECHANISM.

22 (a) DETERMINATION WITH RESPECT TO THE PEO23 PLE’S REPUBLIC OF CHINA.—By not later than January

24 1, 2001, the President shall—
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1 (1) after consulting with the appropriate con2 gressional committees, determine whether or not the

3 People’s Republic of China is—

4 (A) according adequate trade benefits to

5 the United States, including substantially equal

6 competitive opportunities for the commerce of

7 the United States; and

8 (B) taking adequate steps or making sig9 nificant progress toward becoming a WTO

10 member; and

11 (2) submit to the appropriate congressional

12 committees a report setting forth his determinations

13 under subparagraphs (A) and (B) of paragraph (1),

14 with a rationale for each determination.

15 (b) TARIFF INCREASE.—

16 (1) IMPOSITION OF INCREASE.—If the Presi17 dent determines either—

18 (A) under subparagraph (A) of subsection

19 (a)(1) that the People’s Republic of China is

20 not according adequate trade benefits to the

21 United States, or

22 (B) under subparagraph (B) of subsection

23 (a)(1) that the People’s Republic of China is

24 not taking adequate steps or making significant

25 progress toward becoming a WTO member,
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1 then the President shall proclaim, within 180 days

2 after the date of that determination, an increase in

3 the rate of duty with respect to 1 or more articles

4 that are products of that country to not more than

5 the column 1 rate of duty under the Harmonized

6 Tariff Schedule of the United States that applied to

7 the article or articles on December 31, 1994.

8 (2) TERMINATION OF INCREASE.—The Presi9 dent shall terminate any increase in the rate of duty

10 imposed under paragraph (1) on the earlier of—

11 (A) the date on which the People’s Repub12 lic of China becomes a WTO member; or

13 (B) the date on which the President pro14 claims that—

15 (i) the People’s Republic of China is

16 according adequate trade benefits to the

17 United States, including substantially

18 equal competitive opportunities for the

19 commerce of the United States; and

20 (ii) the People’s Republic of China is

21 taking adequate steps or making signifi22 cant progress toward becoming a WTO

23 member.

24 (3) MODIFICATION OF TARIFF.—The President

25 may modify any increase in the rate of duty imposed
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1 under paragraph (1) if the President notifies the ap2 propriate congressional committees of the modifica3 tion and the reasons therefor, except that—

4 (A) the modification may not result in a

5 rate of duty higher than that permitted under

6 paragraph (1); and

7 (B) the authority of this paragraph may

8 not be used to terminate an increase in the rate

9 of duty imposed under paragraph (1).

10 SEC. 4. ACCESSION TO THE WORLD TRADE ORGANIZATION.

11 On the date on which the People’s Republic of China

12 becomes a WTO member, the provisions of title IV of the

13 Trade Act of 1974 shall cease to apply to that country,

14 and nondiscriminatory treatment shall apply to the prod15 ucts of that country.

16 SEC. 5. DEFINITION.

17 As used in this Act, the term ‘‘WTO member’’ has

18 the meaning given that term in section 2(10) of the Uru19 guay Round Agreements Act (19 U.S.C. 3501(10)).

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