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[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1434 Introduced in House (IH)]

  1st Session
                                H. R. 1434

 To establish a commission to review the dispute settlement reports of 
         the World Trade Organization, and for other purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                             April 6, 1995

Mr. Houghton (for himself and Mr. Levin) 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 establish a commission to review the dispute settlement reports of 
         the World Trade Organization, and for other purposes.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``WTO Dispute Settlement Review 
Commission Act''.

SEC. 2. CONGRESSIONAL FINDINGS AND PURPOSE.

    (a) Findings.--The Congress finds the following:
            (1) The United States joined the World Trade Organization 
        as a founding member with the goal of creating an improved 
        global trading system.
            (2) The American people must receive assurances that United 
        States sovereignty will be protected, and United States 
        interests will be advanced, within the global trading system 
        which the WTO will oversee.
            (3) The survival of the new WTO requires the continuation 
        of both trade liberalization and the ability to respond 
        effectively to unfair or otherwise harmful trade practices.
            (4) United States support for the WTO depends upon 
        obtaining mutual trade benefits through the openness of foreign 
        markets and the maintenance of effective United States and WTO 
        remedies against unfair or otherwise harmful trade practices.
            (5) Congress passed the Uruguay Round Agreements Act based 
        upon its understanding that effective trade remedies would not 
        be eroded. These remedies are essential to continue the process 
        of opening foreign markets to imports of goods and services and 
        to prevent harm to American industry and agriculture, 
        particularly through foreign dumping and subsidization.
            (6) The continued support of the Congress for the WTO is 
        dependent upon a WTO dispute settlement system that--
                    (A) operates in a fair and impartial manner;
                    (B) does not add to the obligations of or diminish 
                the rights of the United States under the Uruguay Round 
                Agreements; and
                    (C) does not exceed its authority, scope, or 
                established standard of review.
    (b) Purpose.--It is the purpose of this Act to provide for the 
establishment of the WTO Dispute Settlement Review Commission to 
achieve the goals described in subsection (a)(6).

SEC. 3. ESTABLISHMENT OF COMMISSION.

    (a) Establishment.--There is established a commission to be known 
as the WTO Dispute Settlement Review Commission (hereafter in this Act 
referred to as the ``Commission'').
    (b) Membership.--
            (1) Composition.--The Commission shall be composed of 5 
        members all of whom shall be judges of the Federal judicial 
        circuits and shall be appointed by the President, after 
        consultation with the Majority Leader and Minority Leader of 
        the House of Representatives, the Majority Leader and Minority 
        Leader of the Senate, the chairman and ranking member of the 
        Committee on Ways and Means of the House of Representatives, 
        and the chairman and ranking member of the Committee on Finance 
        of the Senate.
            (2) Date.--The appointments of the members of the 
        Commission shall be made no later than 60 days after the date 
        of the enactment of this Act.
    (c) Period of Appointment; Vacancies.--
            (1) In general.--Members of the Commission first appointed 
        shall each be appointed for a term of 5 years. After the 
        initial 5-year term, 3 members of the Commission shall be 
        appointed for terms of 3 years and the remaining 2 members 
        shall be appointed for terms of 2 years.
            (2) Vacancies.--
                    (A) In general.--Any vacancy on the Commission 
                shall not affect its powers, but shall be filled in the 
                same manner as the original appointment and shall be 
                subject to the same conditions as the original 
                appointment.
                    (B) Unexpired term.--An individual chosen to fill a 
                vacancy shall be appointed for the unexpired term of 
                the member replaced.
    (d) Initial Meeting.--No later than 30 days after the date on which 
all members of the Commission have been appointed, the Commission shall 
hold its first meeting.
    (e) Meetings.--The Commission shall meet at the call of the 
Chairman.
    (f) Quorum.--A majority of the members of the Commission shall 
constitute a quorum, but a lesser number of members may hold hearings.
    (g) Chairman and Vice Chairman.--The Commission shall select a 
Chairman and Vice Chairman from among its members.

SEC. 4. DUTIES OF THE COMMISSION.

    (a) Review of WTO Dispute Settlement Reports.--
            (1) In general.--The Commission shall review--
                    (A) all reports of dispute settlement panels or the 
                Appellate Body of the World Trade Organization in 
                proceedings initiated by other parties to the WTO which 
                are adverse to the United States and which are adopted 
                by the Dispute Settlement Body, and
                    (B) upon request of the United States Trade 
                Representative, any other report of a dispute 
                settlement panel or the Appellate Body which is adopted 
                by the Dispute Settlement Body.
            (2) Scope of review.--In the case of any report described 
        in paragraph (1), the Commission shall review the report and 
        determine whether--
                    (A) the panel or the Appellate Body, as the case 
                may be, exceeded its authority or its terms of 
                reference;
                    (B) the panel or the Appellate Body, as the case 
                may be, added to the obligations of or diminished the 
                rights of the United States under the Uruguay Round 
                Agreement which is the subject of the report;
                    (C) the panel or the Appellate Body, as the case 
                may be, acted arbitrarily or capriciously, engaged in 
                misconduct, or demonstrably departed from the 
                procedures specified for panels and the Appellate Body 
                in the applicable Uruguay Round Agreement; and
                    (D) the report of the panel or the Appellate Body, 
                as the case may be, deviated from the applicable 
                standard of review, including in antidumping, 
                countervailing duty, and other unfair trade remedy 
                cases, including the standard of review set forth in 
                Article 17.6 of the Agreement on Implementation of 
                Article VI of the General Agreement on Tariffs and 
                Trade 1994.
            (3) Affirmative determination.--If the Commission makes an 
        affirmative determination with respect to the action of a panel 
        or the Appellate Body under subparagraph (A), (B), (C), or (D) 
        of paragraph (2), the Commission shall determine whether the 
        action of the panel or Appellate Body materially affected the 
        outcome of the report of the panel or Appellate Body.
    (b) Determination; Report.--
            (1) Determination.--No later than 120 days after the date 
        on which a report of a panel or the Appellate Body described in 
        subsection (a)(1) is adopted by the Dispute Settlement Body, 
        the Commission shall make a written determination with respect 
        to matters described in subsections (a)(2) and (a)(3).
            (2) Reports.--The Commission shall report the 
        determinations described in paragraph (1) to the Committee on 
        Ways and Means of the House of Representatives and the 
        Committee on Finance of the Senate.

SEC. 5. POWERS OF THE COMMISSION.

    (a) Hearings.--The Commission may hold such hearings, sit and act 
at such times and places, take such testimony, and receive such 
evidence as the Commission considers advisable to carry out the 
purposes of this Act.
    (b) Information From Interested Parties and Federal Agencies.--
            (1) Notice of panel or appellate body report.--The United 
        States Trade Representative shall advise the Commission no 
        later than 5 days after the date the Dispute Settlement Body 
        adopts the report of a panel or the Appellate Body that is 
        adverse to the United States and shall immediately publish 
        notice of such advice in the Federal Register, along with 
        notice of an opportunity for interested parties to submit 
        comments to the Commission.
            (2) Submissions and requests for information.--Any 
        interested party may submit comments to the Commission 
        regarding the panel or Appellate Body report. The Commission 
        may also secure directly from any Federal department or agency 
        such information as the Commission considers necessary to carry 
        out the provisions of this Act. Upon request of the Chairman of 
        the Commission, the head of such department or agency shall 
        furnish such information to the Commission.
            (3) Access to panel and appellate body documents.--The 
        United States Trade Representative shall make available to the 
        Commission all submissions and relevant documents relating to 
        the panel or Appellate Body report, including any information 
        contained in such submissions identified by the provider of the 
        information as proprietary information or information treated 
        as confidential by a foreign government.

SEC. 6. REVIEW OF DISPUTE SETTLEMENT PROCEDURES AND PARTICIPATION IN 
              THE WTO.

    (a) Affirmative Report by Commission.--
            (1) In general.--If a joint resolution described in 
        subsection (b)(1) is enacted into law pursuant to the 
        provisions of subsection (c), the United States Trade 
        Representative shall undertake negotiations to amend or modify 
        the rules and procedures of the Dispute Settlement 
        Understanding to which such joint resolution relates.
            (2) 3 affirmative reports by commission.--If a joint 
        resolution described in subsection (b)(2) is enacted into law 
        pursuant to the provisions of subsection (c), the approval of 
        the Congress, provided under section 101(a) of the Uruguay 
        Round Agreements Act, of the WTO Agreement shall cease to be 
        effective in accordance with the provisions of the joint 
        resolution and the United States shall cease to be a member of 
        the WTO.
    (b) Joint Resolutions Described.--
            (1) In general.--For purposes of subsection (a)(1), a joint 
        resolution is described in this paragraph if it is a joint 
        resolution of the 2 Houses of Congress and the matter after the 
        resolving clause of such joint resolution is as follows: ``That 
        the Congress authorizes and directs the United States Trade 
        Representative to undertake negotiations to amend or modify the 
        rules and procedures of the Understanding on Rules and 
        Procedures Governing the Settlement of Disputes relating to 
        ____ with respect to the affirmative determination submitted to 
        the Congress by the WTO Dispute Settlement Review Commission on 
        ____'', the first blank space being filled with the specific 
        rules and procedures with respect to which the Trade 
        Representative is to undertake negotiations and the second 
        blank space being filled with the date of the affirmative 
        determination submitted to the Congress by the Commission 
        pursuant to section 4(b) which has given rise to the joint 
        resolution.
            (2) Withdrawal resolution.--For purposes of subsection 
        (a)(2), a joint resolution is described in this paragraph if it 
        is a joint resolution of the 2 Houses of Congress and the 
        matter after the resolving clause of such joint resolution is 
        as follows: ``That the Congress authorizes and directs the 
        United States Trade Representative to undertake negotiations to 
        amend or modify the rules and procedures of the Understanding 
        on Rules and Procedures Governing the Settlement of Disputes 
        relating to ____ with respect to the affirmative report 
        submitted to the Congress by the WTO Dispute Settlement Review 
        Commission on ____ and if such negotiations do not result in a 
        solution that the Trade Representative, by ____, certifies to 
        the Congress is satisfactory, the Congress withdraws its 
        approval, provided under section 101(a) of the Uruguay Round 
        Agreements Act, of the WTO Agreement as defined in section 2(9) 
        of that Act'', the first blank space being filled with the 
        specific rules and procedures with respect to which the Trade 
        Representative is to undertake negotiations, the second blank 
        space being filled with the date of the affirmative 
        determination submitted to the Congress by the Commission 
        pursuant to section 4(b) which has given rise to the joint 
        resolution, and the third blank space being filled with the 
        date the Congress withdraws its approval of the WTO Agreement.
    (c) Procedural Provisions.--
            (1) In general.--The requirements of this subsection are 
        met if the joint resolution is enacted in accordance with this 
        subsection, and--
                    (A) in the case of a joint resolution described in 
                subsection (b)(1), the Congress adopts and transmits 
                the joint resolution to the President before the end of 
                the 90-day period (excluding any day described in 
                section 154(b) of the Trade Act of 1974) beginning on 
                the date on which the Congress receives an affirmative 
                determination from the Commission described in section 
                4(b), or
                    (B) in the case of a joint resolution described in 
                subsection (b)(2), the Commission has made 3 
                affirmative determinations described in section 4(b) 
                during a 5-year period, and the Congress adopts and 
                transmits the joint resolution to the President before 
                the end of the 90-day period (excluding any day 
                described in section 154(b) of the Trade Act of 1974) 
                beginning on the date on which the Congress receives 
                the third such affirmative determination.
            (2) Presidential veto.--In any case in which the President 
        vetoes the joint resolution, the requirements of this 
        subsection are met if each House of Congress votes to override 
        that veto on or before the later of the last day of the 90-day 
        period referred to in subparagraph (A) or (B) of paragraph (1), 
        whichever is applicable, or the last day of the 15-day period 
        (excluding any day described in section 154(b) of the Trade Act 
        of 1974) beginning on the date on which the Congress receives 
        the veto message from the President.
            (3) Introduction.--
                    (A) Time.--A joint resolution to which this section 
                applies may be introduced at any time on or after the 
                date on which the Commission transmits to the Congress 
                an affirmative determination described in section 4(b), 
                and before the end of the 90-day period referred to in 
                subparagraph (A) or (B) of paragraph (1), as the case 
                may be.
                    (B) Any member may introduce.--A joint resolution 
                described in subsection (b) may be introduced in either 
                House of the Congress by any Member of such House.
            (4) Expedited procedures.--
                    (A) General rule.--Subject to the provisions of 
                this subsection, the provisions of subsections (b), 
                (d), (e), and (f) of section 152 of the Trade Act of 
                1974 (19 U.S.C. 2192(b), (d), (e), and (f)) apply to 
                joint resolutions described in subsection (b) to the 
                same extent as such provisions apply to resolutions 
                under such section.
                    (B) Report or discharge of committee.--If the 
                committee of either House to which a joint resolution 
                has been referred has not reported it by the close of 
                the 45th day after its introduction (excluding any day 
                described in section 154(b) of the Trade Act of 1974), 
                such committee shall be automatically discharged from 
                further consideration of the joint resolution and it 
                shall be placed on the appropriate calendar.
                    (C) Finance and ways and means committees.--It is 
                not in order for--
                            (i) the Senate to consider any joint 
                        resolution unless it has been reported by the 
                        Committee on Finance or the committee has been 
                        discharged under subparagraph (B); or
                            (ii) the House of Representatives to 
                        consider any joint resolution unless it has 
                        been reported by the Committee on Ways and 
                        Means or the committee has been discharged 
                        under subparagraph (B).
                    (D) Special rule for house.--A motion in the House 
                of Representatives to proceed to the consideration of a 
                joint resolution may only be made on the second 
                legislative day after the calendar day on which the 
                Member making the motion announces to the House his or 
                her intention to do so.
            (5) Consideration of second resolution not in order.--It 
        shall not be in order in either the House of Representatives or 
        the Senate to consider a joint resolution (other than a joint 
        resolution received from the other House), if that House has 
        previously adopted a joint resolution under this section 
        relating to the same matter.
    (d) Rules of House of Representatives and Senate.--This section is 
enacted by the Congress--
            (1) as an exercise of the rulemaking power of the House of 
        Representatives and the Senate, respectively, and as such is 
        deemed a part of the rules of each House, respectively, and 
        such procedures supersede other rules only to the extent that 
        they are inconsistent with such other rules; and
            (2) with the full recognition of the constitutional right 
        of either House to change the rules (so far as relating to the 
        procedures of that House) at any time, in the same manner, and 
        to the same extent as any other rule of that House.

SEC. 7. PARTICIPATION IN WTO PANEL PROCEEDINGS.

    (a) In General.--If the United States Trade Representative, in 
proceedings before a dispute settlement panel or the Appellate Body of 
the WTO, seeks--
            (1) to enforce United States rights under a multilateral 
        trade agreement, or
            (2) to defend a challenged action or determination of the 
        United States Government,
a private United States person that is supportive of the United States 
Government's position before the panel or Appellate Body and that has a 
direct economic interest in the panel's or Appellate Body's resolution 
of the matters in dispute shall be permitted to participate in 
consultations and panel proceedings. The Trade Representative shall 
issue regulations, consistent with subsections (b) and (c), ensuring 
full and effective participation by any such private person.
    (b) Access to Information.--The United States Trade Representative 
shall make available to persons described in subsection (a) all 
information presented to or otherwise obtained by the Trade 
Representative in connection with a WTO dispute settlement proceeding. 
The United States Trade Representative shall promulgate regulations 
implementing a protective order system to protect information 
designated by the submitting member as confidential.
    (c) Participation in Panel Process.--Upon request from a person 
described in subsection (a), the United States Trade Representative 
shall--
            (1) consult in advance with such person regarding the 
        content of written submissions from the United States to the 
        WTO panel concerned or to the other member countries involved;
            (2) include, where appropriate, such person or its 
        appropriate representative as an advisory member of the 
        delegation in sessions of the dispute settlement panel;
            (3) allow such special delegation member, where such member 
        would bring special knowledge to the proceeding, to appear 
        before the panel, directly or through counsel, under the 
        supervision of responsible United States Government officials; 
        and
            (4) in proceedings involving confidential information, 
        allow appearance of such person only through counsel as a 
        member of the special delegation.

SEC. 8. DEFINITIONS.

    For purposes of this Act:
            (1) Appellate body.--The term ``Appellate Body'' means the 
        Appellate Body established under Article 17.1 of the Dispute 
        Settlement Understanding.
            (2) Adverse to the united states.--The term ``adverse to 
        the United States'' includes any report which holds any law, 
        regulation, or application thereof by a government agency to be 
        inconsistent with international obligations under a Uruguay 
        Round Agreement (or a nullification or impairment thereof), 
        whether or not there are other elements of the decision which 
        favor arguments made by the United States.
            (3) Dispute settlement panel; panel.--The terms ``dispute 
        settlement panel'' and ``panel'' mean a panel established 
        pursuant to Article 6 of the Dispute Settlement Understanding.
            (4) Dispute settlement body.--The term ``Dispute Settlement 
        Body'' means the Dispute Settlement Body administering the 
        rules and procedures set forth in the Dispute Settlement 
        Understanding.
            (5) Dispute settlement understanding.--The term ``Dispute 
        Settlement Understanding'' means the Understanding on Rules and 
        Procedures Governing the Settlement of Disputes referred to in 
        section 101(d)(16) of the Uruguay Round Agreements Act.
            (6) Uruguay round agreement.--The term ``Uruguay Round 
        Agreement'' means any of the agreements described in section 
        101(d) of the Uruguay Round Agreements Act.
            (7) World trade organization; wto.--The terms ``World Trade 
        Organization'' and ``WTO'' mean the organization established 
        pursuant to the WTO Agreement.
            (8) WTO agreement.--The term ``WTO Agreement'' means the 
        Agreement Establishing the World Trade Organization entered 
        into on April 15, 1994.
                                 <all>
HR 1434 IH----2
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