I

103D CONGRESS

2D SESSION H. R. 4509

To impose restrictions on the authority to enter into certain trade agreements

reducing tariffs with respect to another country.

IN THE HOUSE OF REPRESENTATIVES

MAY 26, 1994

Mr. CRANE (for himself, Mr. CAMP, Mr. HANCOCK, Mr. HERGER, Mr. JACOBS, and Mr. QUILLEN) introduced the following bill; which was referred

to the Committee on Ways and Means

A BILL

To impose restrictions on the authority to enter into certain

trade agreements reducing tariffs with respect to another

country.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. RESTRICTIONS ON AUTHORITY TO ENTER INTO

4 BILATERAL TRADE AGREEMENTS.

5 (a) LIMITATIONS ON AUTHORITY.—The President

6 shall not enter into a trade agreement that reduces tariffs

7 with respect to another country, or provides other benefits

8 to such country, if the following applies to such country:

9 (1)(A) Such country—
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1 (i) has nationalized, expropriated, or other2 wise seized ownership or control of property

3 owned by a United States citizen or by a cor4 poration, partnership, or association which is

5 50 percent or more beneficially owned by

6 United States citizens,

7 (ii) has taken steps to repudiate or nul8 lify—

9 (I) any existing contract or agreement

10 with, or

11 (II) any patent, trademark, or other

12 intellectual property of,

13 a United States citizen or a corporation, part14 nership, or association, which is 50 percent or

15 more beneficially owned by United States citi16 zens, the effect of which is to nationalize, expro17 priate, or otherwise seize ownership or control

18 of property so owned, or

19 (iii) has imposed or enforced taxes or other

20 exactions, restrictive maintenance or operational

21 conditions, or other measures with respect to

22 property so owned, the effect of which is to na23 tionalize, expropriate, or otherwise seize owner24 ship or control of such property,
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1 unless the President makes a determination under

2 subparagraph (B) and promptly furnishes a copy of

3 that determination to the Senate and the House of

4 Representatives.

5 (B) A determination under this subparagraph is

6 a determination that—

7 (i) prompt, adequate, and effective com8 pensation has been or is being made to the citi9 zen, corporation, partnership, or association re10 ferred to in subparagraph (A),

11 (ii) good-faith negotiations to provide

12 prompt, adequate, and effective compensation

13 under the applicable provisions of international

14 law are in progress, or the country concerned is

15 otherwise taking steps to discharge its obliga16 tions under international law with respect to

17 such citizen, corporation, partnership, or asso18 ciation, or

19 (iii) a dispute involving such citizen, cor20 poration, partnership, or association, over com21 pensation for such a seizure has been submitted

22 to arbitration under the provisions of the Con23 vention for the Settlement of Investment Dis24 putes, or in another mutually agreed upon

25 forum.
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1 (2) Such country fails to act in good faith in

2 recognizing as binding or in enforcing arbitral

3 awards in favor of United States citizens or a cor4 poration, partnership, or association which is 50 per5 cent or more beneficially owned by United States

6 citizens, which have been made by arbitrators ap7 pointed for each case or by permanent arbitral bod8 ies to which the parties involved have submitted

9 their dispute.

10 SEC. 2. DEFINITIONS.

11 For purposes of this Act—

12 (1) the term ‘‘country’’ means Colombia, or any

13 other country or customs territory, whether or not a

14 member of the World Trade Organization; and

15 (2) the term ‘‘trade agreement’’ means any

16 agreement permitting accession to, or extending the

17 benefits of, the North America Free Trade Agree18 ment (NAFTA), and any bilateral free trade

19 agreement.

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