I

104TH CONGRESS

1ST SESSION H. R. 1560

To expand United States exports of goods and services by requiring the

development of objective criteria to achieve market access in foreign

countries, to provide the President with reciprocal trade authority, and

for other purposes.

IN THE HOUSE OF REPRESENTATIVES

MAY 3, 1995

Mr. GEPHARDT (for himself, Mr. BONIOR, Mr. FAZIO of California, Mrs. KENNELLY, Mr. MATSUI, Mr. DINGELL, Mr. LEVIN, Mr. MINETA, Ms. KAPTUR, Mr. HOYER, Mr. MILLER of California, Mrs. COLLINS of Illinois,

Mr. CARDIN, Mr. LAFALCE, Mr. BROWN of Ohio, Mr. CLYBURN, Ms.

DANNER, Ms. DELAURO, Mr. DEUTSCH, Mr. EVANS, Mr. FILNER, Mr.

FRANK of Massachusetts, Mr. FRAZER, Mr. GONZALEZ, Mr. HINCHEY,

Mr. JACOBS, Ms. EDDIE BERNICE JOHNSON of Texas, Mr. KILDEE, Mr.

KLINK, Mr. LIPINSKI, Mrs. MEEK of Florida, Mr. NEAL of Massachusetts, Mr. RAHALL, Mr. ROMERO-BARCELO ́, Mr. SANDERS, Mr. STUPAK,

Mr. SPRATT, Mr. KLECZKA, and Ms. JACKSON-LEE) introduced the following bill; which was referred to the Committee on Ways and Means,

and in addition to the Committee on Rules, for a period to be subsequently determined by the Speaker, in each case for consideration of such

provisions as fall within the jurisdiction of the committee concerned

A BILL

To expand United States exports of goods and services by

requiring the development of objective criteria to achieve

market access in foreign countries, to provide the President with reciprocal trade authority, and for other

purposes.
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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 ‘‘Open Markets and

5 Fair Trade Act of 1995’’.

6 SEC. 2. REPORTS ON MARKET ACCESS.

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

8 the date of the enactment of this Act, and annually there9 after, the Secretary shall submit to the Congress a report

10 with respect to those countries selected by the Secretary

11 in which goods or services produced or originating in the

12 United States, that would otherwise be competitive in

13 those countries, do not have market access. Each report

14 shall contain the following with respect to each such coun15 try:

16 (1) ASSESSMENT OF POTENTIAL MARKET AC17 CESS.—An assessment of the opportunities that

18 would, but for the lack of market access, be available

19 in the market in that country, for goods and services

20 produced or originating in the United States in

21 those sectors selected by the Secretary. In making

22 such assessment, the Secretary shall consider the

23 competitive position of such goods and services in

24 similarly developed markets in other countries. Such

25 assessment shall specify the time periods within
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1 which such market access opportunities should rea2 sonably be expected to be obtained.

3 (2) CRITERIA FOR MEASURING MARKET AC4 CESS.—Objective criteria for measuring the extent to

5 which those market access opportunities described in

6 paragraph (1) have been obtained. The development

7 of such objective criteria may include the use of in8 terim objective criteria to measure results on a peri9 odic basis, as appropriate.

10 (3) COMPLIANCE WITH TRADE AGREEMENTS.—

11 An assessment of whether, and to what extent, the

12 country concerned has materially complied with—

13 (A) agreements and understandings

14 reached between the United States and that

15 country pursuant to section 3, and

16 (B) existing trade agreements between the

17 United States and that country.

18 Such assessment shall include specific information

19 on the extent to which United States suppliers have

20 achieved additional access to the market in the coun21 try concerned and the extent to which that country

22 has complied with other commitments under such

23 agreements and understandings.

24 (b) SELECTION OF COUNTRIES AND SECTORS.—
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1 (1) IN GENERAL.—In selecting countries and

2 sectors that are to be the subject of a report under

3 subsection (a), the Secretary shall give priority to—

4 (A) any country with which the United

5 States has a trade deficit if access to the mar6 kets in that country is likely to have significant

7 potential to increase exports of United States

8 goods and services; and

9 (B) any country, and sectors therein, in

10 which access to the markets will result in sig11 nificant employment benefits for producers of

12 United States goods and services.

13 The Secretary shall also give priority to sectors

14 which represent critical technologies, including those

15 identified by the National Critical Technologies

16 Panel under section 603 of the National Science and

17 Technology Policy, Organization, and Priorities Act

18 of 1976 (42 U.S.C. 6683).

19 (2) FIRST REPORT.—The first report submitted

20 under subsection (a) shall include those countries

21 with which the United States has a substantial por22 tion of its trade deficit.

23 (3) TRADE SURPLUS COUNTRIES.—The Sec24 retary may include in reports after the first report

25 such countries as the Secretary considers appro-
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1 priate with which the United States has a trade sur2 plus but which are otherwise described in subsection

3 (a) and paragraph (1) of this subsection.

4 (c) OTHER SECTORS.—The Secretary shall include

5 an assessment under subsection (a) of any country or sec6 tor for which the Trade Representative requests such as7 sessment be made. In preparing any such request, the

8 Trade Representative shall give priority to those barriers

9 identified in the reports required by section 181(b) of the

10 Trade Act of 1974 (19 U.S.C. 2241(b)).

11 (d) INFORMATION ON ACCESS BY FOREIGN SUPPLI12 ERS.—The Secretary shall consult with the governments

13 of foreign countries concerning access to the markets of

14 any other country of goods and services produced or origi15 nating in those countries. At the request of the govern16 ment of any such country so consulted, the Secretary may

17 include in the reports required by subsection (a) informa18 tion, with respect to that country, on such access.

19 SEC. 3. NEGOTIATIONS TO ACHIEVE MARKET ACCESS.

20 (a) NEGOTIATING AUTHORITY.—The President is au21 thorized to enter into agreements or other understandings

22 with the government of any country for the purpose of

23 obtaining the market access opportunities described in the

24 reports of the Secretary under section 2.
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1 (b) DETERMINATION OF PRIORITY OF NEGOTIA2 TIONS.—Upon the submission by the Secretary of each re3 port under section 2, the Trade Representative shall deter4 mine—

5 (1) for which countries and sectors identified in

6 the report the Trade Representative will pursue ne7 gotiations, during the 6-month period following sub8 mission of the report, for the purpose of concluding

9 agreements or other understandings described in

10 subsection (a), and the timeframe for pursuing nego11 tiations on any other country or sector identified in

12 the report; and

13 (2) for which countries and sectors identified in

14 any previous report of the Secretary under section 2

15 the Trade Representative will pursue negotiations,

16 during the 6-month period described in paragraph

17 (1), in cases in which—

18 (A) negotiations were not previously pur19 sued by the Trade Representative, or

20 (B) negotiations that were pursued by the

21 Trade Representative did not result in the con22 clusion of an agreement or understanding de23 scribed in subsection (a) during the preceding

24 6-month period, but are expected to result in
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1 such an agreement or understanding during the

2 6-month period described in paragraph (1).

3 For purposes of this Act, negotiations by the Trade Rep4 resentative with respect to a particular sector shall be for

5 a period of not more than 12 months.

6 (c) SEMIANNUAL REPORTS.—At the end of the 6-

7 month period beginning on the date on which the Sec8 retary’s first report is submitted under section 2(a), and

9 every 6 months thereafter, the Trade Representative shall

10 submit to the Congress a report containing the following:

11 (1) REPORT WHERE NEGOTIATIONS PURSUED

12 IN PREVIOUS 6-MONTH PERIOD.—With respect to

13 each country and sector on which negotiations de14 scribed in subsection (b) were pursued during that

15 6-month period—

16 (A) a determination of whether such nego17 tiations have resulted in the conclusion of an

18 agreement or understanding intended to obtain

19 the market access opportunities described in the

20 most recent applicable report of the Secretary,

21 and if not—

22 (i) whether such negotiations are con23 tinuing because they are expected to result

24 in such an agreement or understanding

25 during the succeeding 6-month period; or
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1 (ii) whether such negotiations have

2 terminated;

3 (B) in the case of a positive determination

4 made under subparagraph (A)(i) in the preced5 ing report submitted under this subsection, a

6 determination of whether the continuing nego7 tiations have resulted in the conclusion of an

8 agreement or understanding described in sub9 paragraph (A) during that 6-month period.

10 (2) REPORT WHERE NEGOTIATIONS NOT PUR11 SUED.—With respect to each country and sector on

12 which negotiations described in subsection (b) were

13 not pursued during that 6-month period, a deter14 mination of when such negotiations will be pursued.

15 SEC. 4. MONITORING OF AGREEMENTS AND UNDERSTAND16 INGS.

17 (a) IN GENERAL.—For the purpose of making the

18 assessments required by section 2(a)(3), the Secretary

19 shall monitor the compliance with each agreement or un20 derstanding reached between the United States and any

21 country pursuant to section 3, and with each existing

22 trade agreement between the United States and any coun23 try that is the subject of a report under section 2(a). In

24 making each such assessment, the Secretary shall de25 scribe—
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1 (1) the extent to which market access for the

2 country and sectors covered by the agreement or un3 derstanding has been achieved; and

4 (2) the bilateral trade relationship with that

5 country in that sector.

6 In the case of agreements or understandings reached pur7 suant to section 3, the description under paragraph (1)

8 shall be done on the basis of the objective criteria set forth

9 in the applicable report under section 2(a)(2).

10 (b) TREATMENT OF AGREEMENTS AND UNDER11 STANDINGS.—Any agreement or understanding reached

12 pursuant to negotiations conducted under this Act, and

13 each existing trade agreement between the United States

14 and a country that is the subject of a report under section

15 2(a), shall be considered to be a trade agreement for pur16 poses of section 301 of the Trade Act of 1974.

17 SEC. 5. TRIGGERING OF SECTION 301 ACTIONS.

18 (a) FAILURE TO CONCLUDE AGREEMENTS.—In any

19 case in which the Trade Representative determines under

20 section 3(c)(1) (A)(ii) or (B) that negotiations have not

21 resulted in the conclusion of an agreement or understand22 ing described in section 3(a), each restriction on, or bar23 rier or impediment to, access to the markets of the country

24 concerned that was the subject of such negotiations shall,

25 for purposes of title III of the Trade Act of 1974, be con-
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1 sidered to be an act, policy, or practice determined under

2 section 304 of that Act to be an act, policy, or practice

3 that is unreasonable and discriminatory and burdens or

4 restricts United States commerce. The Trade Representa5 tive shall determine what action to take under section

6 301(b) of that Act in response to such act, policy, or prac7 tice.

8 (b) NONCOMPLIANCE WITH AGREEMENTS OR UN9 DERSTANDINGS.—In any case in which the Secretary de10 termines, in a report submitted under section 2(a), that

11 a foreign country is not in material compliance with—

12 (1) any agreement or understanding concluded

13 pursuant to negotiations conducted under section 3,

14 or

15 (2) any existing trade agreement between the

16 United States and that country,

17 the Trade Representative shall determine what action to

18 take under section 301(a) of the Trade Act of 1974. For

19 purposes of section 301 of that Act, a determination of

20 noncompliance described in the preceding sentence shall

21 be treated as a determination made under section 304 of

22 that Act.
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1 SEC. 6. EXPEDITED PROCEDURES FOR CERTAIN PRESI2 DENTIAL ACTIONS.

3 (a) AUTHORITY FOR RECIPROCAL ACTIONS.—In any

4 case in which—

5 (1) section 5 applies,

6 (2) the President determines that reciprocal ac7 tion should be taken by the United States in re8 sponse to—

9 (A) a restriction, barrier, or impediment

10 referred to in section 5(a) with respect to access

11 to the market of a country, or

12 (B) noncompliance with an agreement, un13 derstanding, or trade agreement referred to in

14 section 5(b),

15 as the case may be,

16 (3) changes in existing law or new statutory au17 thority is necessary for such reciprocal action to be

18 taken, and

19 (4) the President, within 30 days (excluding

20 any day described in section 154(b) of the Trade Act

21 of 1974) after—

22 (A) the determination of the Trade Rep23 resentative under section 3(c)(1)(A)(ii) or (B),

24 or

25 (B) the determination of the Secretary in

26 the applicable report under section 2(a),
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1 as the case may be, submits to the Congress a draft

2 of implementing legislation with respect to the

3 changes or authority described in paragraph (3),

4 then subsection (c) applies.

5 (b) DEFINITIONS.—For purposes of this section—

6 (1) the term ‘‘reciprocal action’’ means action

7 that is taken in direct response to a restriction on,

8 or barrier or impediment to, access to the market in

9 another country and is comparable or of equivalent

10 effect to such restriction, barrier, or impediment;

11 and

12 (2) the term ‘‘implementing legislation’’ means

13 a bill of either House of Congress which is intro14 duced as provided in subsection (c) and which con15 tains provisions necessary to make the changes or

16 provide the authority described in subsection (a)(3).

17 (c) PROCEDURES FOR IMPLEMENTING LEGISLA18 TION.—On the day on which implementing legislation is

19 submitted to the House of Representatives and the Senate

20 under subsection (a), the implementing legislation shall be

21 introduced and referred as provided in section 151(c)(1)

22 of the Trade Act of 1974 for implementing bills under

23 such section. The provisions of subsections (d), (e), (f),

24 and (g) of section 151 of such Act shall apply to imple-
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1 menting legislation to the same extent as such subsections

2 apply to implementing bills.

3 (d) RULES OF HOUSE OF REPRESENTATIVES AND

4 SENATE.—This section is enacted by the Congress—

5 (1) as an exercise of the rulemaking power of

6 the House of Representatives and the Senate, re7 spectively, and as such is deemed a part of the rules

8 of each House, respectively, and such procedures su9 persede other rules only to the extent that they are

10 inconsistent with such other rules; and

11 (2) with the full recognition of the constitu12 tional right of either House to change the rules (so

13 far as relating to the procedures of that House) at

14 any time, in the same manner, and to the same ex15 tent as any other rule of that House.

16 SEC. 7. URUGUAY ROUND AGREEMENTS NOT AFFECTED.

17 Nothing in this Act shall be construed to violate any

18 provision of the agreements approved by the Congress in

19 section 101(a)(1) of the Uruguay Round Agreements Act

20 (19 U.S.C. 3511(a)(1)).

21 SEC. 8. DEFINITIONS.

22 As used in this Act:

23 (1) EXISTING TRADE AGREEMENT BETWEEN

24 THE UNITED STATES AND A COUNTRY.—An ‘‘exist25 ing trade agreement’’ between the United States and
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1 another country means any trade agreement or un2 derstanding that was entered into between the Unit3 ed States and that country before the date of the en4 actment of this Act and is in effect on such date.

5 Such term includes, but is not limited to—

6 (A) with respect to Japan—

7 (i) the Arrangement Between the Gov8 ernment of Japan and the Government of

9 the United States of America Concerning

10 Trade in Semiconductor Products, signed

11 in 1986;

12 (ii) the Arrangement Between the

13 Government of Japan and the Government

14 of the United States of America Concern15 ing Trade in Semiconductor Products,

16 signed in 1991;

17 (iii) the United States-Japan Wood

18 Products Agreement, signed on June 5,

19 1990;

20 (iv) Measures Related to Japanese

21 Public Sector Procurements of Computer

22 Products and Services, signed on January

23 10, 1992;
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1 (v) the Tokyo Declaration on the

2 U.S.-Japan Global Partnership, signed on

3 January 9, 1992; and

4 (vi) the Cellular Telephone and Third5 Party Radio Agreement, signed in 1989;

6 (B) with respect to the European Union—

7 (i) the Agreement Concerning the Ap8 plication of the GATT Agreement on

9 Trade in Civil Aircraft Between the Euro10 pean Economic Community and the Gov11 ernment of the United States of America

12 on trade in large civil aircraft, with an13 nexes, entered into force on July 17, 1992;

14 (ii) the Agreement Concerning Pro15 curement Between the United States and

16 the European Union, signed April 15,

17 1994; and

18 (iii) the Memorandum of Understand19 ing (MOU) on Procurement Between the

20 United States and the European Union,

21 signed May 25, 1993; and

22 (C) with respect to the People’s Republic

23 of China—

24 (i) the Memorandum of Understand25 ing (MOU) on the Protection of Intellec-
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1 tual Property Rights Between the United

2 States and the People’s Republic of China,

3 signed January 17, 1992;

4 (ii) the Memorandum of Understand5 ing (MOU) on Market Access Between the

6 United States and the People’s Republic of

7 China, signed October 10, 1992;

8 (iii) the Bilateral Textile Agreement

9 Between the United States and the Peo10 ple’s Republic of China, signed January

11 17, 1994; and

12 (iv) an exchange of letters with an at13 tached action plan between the United

14 States and the People’s Republic of China,

15 signed February 26, 1995, relating to in16 tellectual property rights.

17 (2) SECRETARY.—The term ‘‘Secretary’’ means

18 the Secretary of Commerce.

19 (3) TRADE REPRESENTATIVE.—The term

20 ‘‘Trade Representative’’ means the United States

21 Trade Representative.

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