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[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[S. 1104 Introduced in Senate (IS)]

107th CONGRESS
  1st Session
                                S. 1104

     To establish objectives for negotiating, and procedures for, 
                 implementing certain trade agreements.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                             June 26, 2001

  Mr. Graham (for himself, Mr. Murkowski, Mr. Gramm, Mr. Nickles, Mr. 
 Thompson, Mr. Kyl, Mr. Hagel, Mr. Roberts, and Mr. Chafee) introduced 
the following bill; which was read twice and referred to the Committee 
                               on Finance

_______________________________________________________________________

                                 A BILL

 
     To establish objectives for negotiating, and procedures for, 
                 implementing certain trade agreements.

    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 ``Trade Promotion Act of 2001''.

SEC. 2. FINDINGS.

    Congress finds that--
            (1) international trade and investment are powerful engines 
        of economic growth that help create the culture of liberty and 
        the economic wealth needed to build and sustain support for 
        better working conditions and improved environmental protection 
        around the world;
            (2) in the United States, free and fair trade maximizes 
        efficient use of resources, opens new markets and new 
        opportunities for American businesses, farmers, agricultural 
        producers, and families, and provides new and better-paying 
        jobs for American workers;
            (3) in the international system, broader and more 
        comprehensive trade agreements will provide developing 
        countries with greater access to world markets, create new 
        opportunities for upward economic mobility, and decrease 
        differentials that currently exist between rich and poor;
            (4) reducing barriers to trade is a fundamental foreign and 
        domestic policy interest of the United States and therefore the 
        successful negotiation of reciprocal trade agreements on a 
        bilateral, regional, and multilateral basis is a high priority 
        for the United States;
            (5) the pursuit of policies to ease short-term dislocations 
        and adjustment problems that can result from expanded trade 
        relations is an appropriate subject for consideration in the 
        context of bilateral, regional, and multilateral trade 
        negotiations between the United States and foreign countries, 
        and would be an important objective for discussions between the 
        United States and other World Trade Organization (in this Act, 
        referred to as the ``WTO'') members in a new round of global 
        talks to expand the international trading system;
            (6) in order to best serve the trade policy interests of 
        the United States in a wide range of bilateral, regional, and 
        multilateral trade negotiations, the President should have a 
        clear and flexible negotiating mandate that will optimize the 
        ability of the United States to assert leadership in 
        international discussions, and provide United States 
        negotiators with the maximum opportunity to secure the most 
        favorable result for the United States; and
            (7) an appropriate delegation of trade negotiating 
        authority to the President is necessary for the United States 
        to exert the leadership necessary to achieve the important 
        policy objectives served by reducing barriers to international 
        trade.

SEC. 3. TRADE NEGOTIATING OBJECTIVES OF THE UNITED STATES.

    (a) Statement of Purposes.--The purposes of this Act are to 
achieve, through trade agreements that afford mutual benefits--
            (1) more open, equitable, and reciprocal market access for 
        United States goods, services, and investment;
            (2) the reduction or elimination of barriers and other 
        trade-distorting policies and practices;
            (3) a more effective system of international trading rules 
        and procedures; and
            (4) economic growth, higher living standards, and full 
        employment in the United States, and economic growth and 
        development among the trading partners of the United States.
    (b) Principal Trade Negotiating Objectives.--
            (1) General rule.--The principal objective of trade 
        agreements is to expand the freedom to trade and invest, and in 
        the process expand jobs, economic growth, and opportunity. In 
        pursuing the negotiating objectives described in subparagraphs 
        (A) through (N) of paragraph (2), United States negotiators 
        shall take into account legitimate United States domestic 
        objectives, including protection of health, safety, essential 
        security, environmental, consumer, and employment opportunity 
        interests.
            (2) Negotiating objectives.--The principal trade 
        negotiating objectives of the United States for agreements 
        subject to the provisions of section 4 include the following:
                    (A) Trade in goods.--The principal negotiating 
                objective of the United States regarding barriers to 
                trade in goods is to obtain competitive opportunities 
                for United States exports in foreign markets 
                substantially equivalent to the opportunities afforded 
                foreign exports to United States markets, including the 
                reduction or elimination of tariff and nontariff trade 
                barriers, including--
                            (i) tariff and nontariff disparities 
                        remaining from previous rounds of multilateral 
                        trade negotiations that have put United States 
                        exports at a competitive disadvantage in world 
                        markets;
                            (ii) measures identified in the annual 
                        report prepared under section 181 of the Trade 
                        Act of 1974 (19 U.S.C. 2241);
                            (iii) tariff elimination for products 
                        identified in section 111(b) of the 
Uruguay Round Agreements Act (19 U.S.C. 3521(b)) and the accompanying 
Statement of Administrative Action related to that section; and
                            (iv) the negotiating objectives regarding 
                        trade in civil aircraft set forth in section 
                        135 of the Uruguay Round Agreements Act (19 
                        U.S.C. 3355 et seq.).
                    (B) Trade in services.--The principal negotiating 
                objectives of the United States regarding trade in 
                services are--
                            (i) to reduce or eliminate barriers to, or 
                        other distortions of, international trade in 
                        services in General Agreement on Trade in 
                        Services negotiations and other multilateral 
                        and bilateral negotiations by--
                                    (I) achieving maximum 
                                liberalization of market access in all 
                                modes of supply;
                                    (II) removing regulatory and other 
                                barriers that deny national treatment 
                                or unreasonably restrict the 
                                establishment of and operation of 
                                service suppliers in foreign markets; 
                                and
                                    (III) seeking full market access 
                                and national treatment for services 
                                essential to supporting electronic 
                                commerce and for services sectors that 
                                have not received significant WTO 
                                market opening efforts; and
                            (ii) to develop internationally agreed 
                        rules, including dispute settlement procedures, 
                        that--
                                    (I) are consistent with the 
                                commercial policies of the United 
                                States; and
                                    (II) will reduce or eliminate such 
                                barriers or distortions, and help 
                                ensure fair, equitable opportunities 
                                for foreign markets.
                    (C) Agriculture.--The principal negotiating 
                objectives of the United States with respect to 
                agriculture are, in addition to those set forth in 
                section 1123(b) of the Food Security Act of 1985 (7 
                U.S.C. 1736r(b)), to achieve, on an expedited basis to 
                the maximum extent feasible, more open and fair 
                conditions of trade in agricultural commodities by--
                            (i) developing, strengthening, and 
                        clarifying rules for agricultural trade, 
                        including disciplines on restrictive or trade-
                        distorting import and export practices such as 
                        those that would impact perishable or cyclical 
                        products;
                            (ii) increasing United States agricultural 
                        exports by eliminating barriers to trade 
                        (including transparent and nontransparent 
                        barriers) and reducing or eliminating the 
                        subsidization of agricultural production 
                        consistent with the United States policy of 
                        agricultural stabilization in cyclical and 
                        unpredictable markets;
                            (iii) creating a free and more open world 
                        agricultural trading system by resolving 
                        questions pertaining to export and other trade-
                        distorting subsidies, market pricing, and 
                        market access;
                            (iv) eliminating or reducing substantially 
                        other specific constraints to fair trade and 
                        more open market access, such as tariffs, 
                        quotas, and other nontariff practices; and
                            (v) developing, strengthening, and 
                        clarifying rules that address practices that 
                        unfairly decrease United States market access 
                        opportunities or distort agricultural markets 
                        to the detriment of the United States, 
                        including--
                                    (I) unfair or trade-distorting 
                                activities of State trading enterprises 
                                and other administrative mechanisms, 
                                including lack of price transparency;
                                    (II) restrictions or commercial 
                                requirements affecting new 
                                technologies, including biotechnology, 
                                that are not based on sound science;
                                    (III) sanitary or phytosanitary 
                                restrictions not based on sound 
                                science;
                                    (IV) other unjustified technical 
                                barriers to trade; and
                                    (V) restrictive rules in the 
                                administration of tariff-rate quotas.
                    (D) Foreign investment.--The principal negotiating 
                objectives of the United States regarding foreign 
                investment are--
                            (i) to reduce or eliminate artificial or 
                        trade-distorting barriers to foreign 
                        investment, expand the principle of national 
                        treatment, and reduce unreasonable barriers to 
                        establishment; and
                            (ii) to develop international rules through 
                        the negotiation of investment agreements, 
                        including dispute settlement procedures, that--
                                    (I) will help ensure a free flow of 
                                foreign investment; and
                                    (II) will reduce or eliminate the 
                                trade distortive effects of certain 
                                trade-related investment measures.
                    (E) Intellectual property.--The principal 
                negotiating objectives of the United States regarding 
                intellectual property are--
                            (i) to further promote adequate and 
                        effective protection of intellectual property 
                        rights, by--
                                    (I) seeking the enactment and 
                                effective enforcement by foreign 
                                governments of laws that--
                                            (aa) recognize and 
                                        adequately protect intellectual 
                                        property, including copyrights, 
                                        patents, trademarks, 
                                        semiconductor chip layout 
                                        designs, biotechnology, trade 
                                        names, and trade secrets; and
                                            (bb) provide protection 
                                        against unfair competition;
                                    (II) ensuring the full 
                                implementation of the Agreement on 
                                Trade-Related Aspects of Intellectual 
                                Property Rights referred to in section 
                                101(d)(15) of the Uruguay Round 
                                Agreements Act (19 U.S.C. 3511(d)(15)), 
                                and achieving improvements in the 
                                standards of that Agreement;
                                    (III) providing strong protection 
                                for new and emerging technologies and 
                                electronic and other new methods of 
                                transmitting and distributing products 
                                embodying intellectual property;
                                    (IV) preventing or eliminating 
                                discrimination with respect to matters 
                                affecting the availability, 
                                acquisition, scope, maintenance, use, 
                                and enforcement of intellectual 
                                property rights; and
                                    (V) providing for protection of 
                                intellectual property rights through 
                                accessible, expeditious, and effective 
                                civil, administrative, and criminal 
                                enforcement mechanisms;
                            (ii) to secure fair, equitable, and 
                        nondiscriminatory market access opportunities 
                        for United States persons that rely on 
                        intellectual property protection; and
                            (iii) to recognize that the inclusion in 
                        the WTO of--
                                    (I) adequate and effective 
                                substantive norms and standards for the 
                                protection and enforcement of 
                                intellectual property rights; and
                                    (II) dispute settlement provisions 
                                and enforcement procedures,
                        is without prejudice to complementary 
                        initiatives undertaken in other international 
                        organizations.
                    (F) Electronic commerce and information 
                technologies.--The principal trade negotiating 
                objectives of the United States regarding electronic 
                commerce and information technologies are--
                            (i) to reduce or eliminate tariff and 
                        nontariff barriers with respect to information 
                        technology products;
                            (ii) to pursue the continued development of 
                        electronic commerce in an environment that is 
                        free of trade barriers;
                            (iii) to achieve trade liberalization in 
                        related goods and services that facilitate the 
                        growth of electronic commerce; and
                            (iv) to eliminate barriers to online 
                        delivery of electronic content.
                    (G) Worker rights.--The principal trade negotiating 
                objectives of the United States regarding worker rights 
                are--
                            (i) to ensure that foreign labor, health, 
                        and safety policies and practices do not 
                        arbitrarily or unjustifiably discriminate 
                        against United States exports or constitute a 
                        barrier to trade; and
                            (ii) to secure the commitment of foreign 
                        governments to not derogate from or waive 
                        existing domestic labor (including measures 
                        that deter exploitative child labor), health 
and safety standards for the purpose of attracting investment, 
inhibiting United States exports, or otherwise gaining competitive 
advantage.
                    (H) Environment.--The principal trade negotiating 
                objectives of the United States regarding environment 
                are--
                            (i) to ensure that foreign environmental 
                        protection policies and practices do not 
                        arbitrarily or unjustifiably discriminate 
                        against United States exports or constitute a 
                        barrier to trade;
                            (ii) to secure the commitment of foreign 
                        governments to not derogate from or waive 
                        existing domestic environmental standards for 
                        the purpose of attracting investment, 
                        inhibiting United States exports, or otherwise 
                        gaining competitive advantage; and
                            (iii) to achieve maximum trade 
                        liberalization and market access for United 
                        States environmental technologies, goods, and 
                        services.
                    (I) Compliance and enforcement.--The principal 
                negotiating objective on compliance and enforcement is 
                the inclusion in trade agreements of mechanisms for 
                early identification of implementation problems, 
                monitoring of compliance with agreements, and 
                appropriate enforcement of obligations.
                    (J) Dispute settlement.--The principal negotiating 
                objectives of the United States with respect to dispute 
                settlement are--
                            (i) to provide for transparent, effective, 
                        and expeditious dispute settlement mechanisms 
                        and procedures in any trade agreement entered 
                        into under this authority; and
                            (ii) to ensure that such mechanisms within 
                        the WTO and agreements concluded under the 
                        auspices of the WTO provide for more effective 
                        and expeditious resolution of disputes and 
                        enable better enforcement of United States 
                        rights.
                    (K) Unfair trade practices.--The principal 
                negotiating objectives of the United States with 
                respect to unfair trade practices are--
                            (i) to enhance the operation and 
                        effectiveness of the relevant Uruguay Round 
                        Agreements and any other agreements designed to 
                        define, deter, discourage the persistent use 
                        of, and otherwise restrict, unfair trade 
                        practices having adverse trade effects, 
                        including forms of subsidy and dumping not 
                        adequately disciplined, such as resource input 
                        subsidies, diversionary dumping, dumped or 
                        subsidized inputs, third country dumping, 
                        circumvention of antidumping or countervailing 
                        duty orders, and export targeting practices; 
                        and
                            (ii) to obtain the enforcement of WTO rules 
                        against--
                                    (I) trade-distorting practices of 
                                State trading enterprises; and
                                    (II) the acts, practices, or 
                                policies of any foreign government 
                                which, as a practical matter, 
                                unreasonably require that--
                                            (aa) substantial direct 
                                        investment in the foreign 
                                        country be made;
                                            (bb) intellectual property 
                                        be licensed to the foreign 
                                        country or to any firm of the 
                                        foreign country; or
                                            (cc) other collateral 
                                        concessions be made,
                                as a condition for the importation of 
                                any product or service of the United 
                                States into the foreign country or as a 
                                condition for carrying on business in 
                                the foreign country.
                    (L) WTO and multilateral trade agreements.--The 
                principal negotiating objectives of the United States 
                regarding the WTO and other multilateral trade 
                agreements are--
                            (i) to improve the operation of the WTO, 
                        and extend the coverage of the Uruguay Round 
                        Agreements and other multilateral agreements to 
                        products, sectors, and conditions of trade not 
                        adequately covered; and
                            (ii) to expand country participation in 
                        agreements, where appropriate.
                    (M) Transparency.--The principal negotiating 
                objective of the United States regarding transparency 
                is to obtain broader application of the principle of 
                transparency through increased public access to 
                information regarding trade issues, clarification of 
                the costs and benefits of trade policy actions, 
                progress toward the elimination of corrupt business 
                practices and the observance of open and equitable 
                procedures by United States trading partners and within 
                the WTO.
                    (N) Regulatory competition.--The principal trade 
                negotiating objective of the United States regarding 
                regulatory competition is--
                            (i) the elimination of measures such as 
                        price controls, reference pricing, and other 
                        practices by foreign governments to provide a 
                        competitive advantage to their domestic 
                        producers, service providers, or investors and 
                        thereby reduce market access for United States 
                        goods, services, and investment;
                            (ii) the establishment by foreign 
                        governments of regulatory requirements which 
                        are consistent with sound scientific 
                        principles; and
                            (iii) to ensure that government regulation 
                        and other governmental practices do not 
discriminate against United States goods, services, or investment.
    (c) Complementary Objectives.--The President should take into 
account the relationship between trade agreements and other important 
priorities of the United States and seek to ensure that the trade 
agreements entered into by the United States complement and reinforce 
other policy goals. The United States priorities in this area include--
            (1) supplementing and strengthening standards for 
        protection of intellectual property rights under conventions 
        designed to protect such rights that are administered by 
        international organizations other than the WTO, expanding the 
        conventions to cover new and emerging technologies, and 
        eliminating discrimination and unreasonable exceptions or 
        preconditions to such protection;
            (2) fostering stability in international currency markets 
        and developing mechanisms to assure greater coordination, 
        consistency, and cooperation between international trade and 
        monetary systems and institutions in order to protect against 
        the trade consequences of significant and unanticipated 
        currency movements;
            (3) promoting respect for workers' rights, by--
                    (A) reviewing the relationship between workers' 
                rights and the operation of international trading 
                systems and specific trade arrangements; and
                    (B) seeking the effective implementation in the 
                International Labor Organization (in this Act, referred 
                to as the ``ILO'') of the Declaration on Fundamental 
                Principles and Rights at Work and its monitoring 
                mechanism to ensure the systematic examination of, and 
                reporting on, the extent to which ILO members promote 
                and enforce the freedom of association, the right to 
                organize and bargain collectively, a prohibition on the 
                use of forced labor, a prohibition on exploitative 
                child labor, and a prohibition on discrimination in 
                employment;
            (4) expanding the production of goods and trade in goods 
        and services to ensure the optimal use of the world's 
        resources, while seeking to protect and preserve the 
        environment and to enhance the international means for doing 
        so;
            (5) supporting United States counternarcotics strategy by 
        promoting export diversification and broad-based economic 
        development in countries and regions engaged in drug-crop 
        production in order to create viable alternatives to production 
        of and trade in illicit drugs;
            (6) fostering international peace and security by 
        encouraging the development of the rule of law, civil society 
        and democracy; the practice of good governance principles; the 
        protection of human rights; and religious tolerance in 
        countries and markets with which the United States trades; and
            (7) reducing illegal migration across international borders 
        by promoting economic growth and development in countries and 
        regions experiencing mass emigration, and thereby providing 
        enhanced local employment opportunities for would-be emigrees.

SEC. 4. TRADE AGREEMENT NEGOTIATING AUTHORITY.

    (a) Tariff Proclamation Authority.--
            (1) In general.--Whenever the President determines that 1 
        or more existing duties or other import restrictions of any 
        foreign country or the United States are unduly burdening and 
        restricting the foreign trade of the United States and that the 
        purposes and objectives of this Act will be promoted thereby, 
        the President--
                    (A) may enter into trade agreements with foreign 
                governments before--
                            (i) December 31, 2005; or
                            (ii) December 31, 2007, if the authority 
                        provided by this Act is extended under 
                        subsection (c) (or December 31, 2009, if a 
                        second extension is approved); and
                    (B) may, consistent with paragraphs (2) through 
                (5), proclaim--
                            (i) such modification or continuance of any 
                        existing duty;
                            (ii) such continuance of existing duty-free 
                        or excise treatment; or
                            (iii) such additional duties,
                as the President determines to be required or 
                appropriate to carry out any such trade agreement.
            (2) Limitations.--No proclamation may be made under 
        paragraph (1) that--
                    (A) reduces any rate of duty (other than a rate of 
                duty that does not exceed 5 percent ad valorem on the 
                date of enactment of this Act) to a rate which is less 
                than 50 percent of the rate of such duty that applies 
                on such date of enactment;
                    (B) provides for a reduction of duty on an article 
                to take effect on a date that is more than 10 years 
                after the first reduction that is proclaimed to carry 
                out a trade agreement with respect to such article; or
                    (C) increases any rate of duty above the rate that 
                applied on the date of enactment of this Act.
            (3) Aggregate reduction; exemption from staging.--
                    (A) Aggregate reduction.--Except as provided in 
                subparagraph (B), the aggregate reduction in the rate 
                of duty on any article which is in effect on any day 
                pursuant to a trade agreement entered into under 
                paragraph (1) shall not exceed the aggregate reduction 
                which would have been in effect on such day if--
                            (i) a reduction of 3 percent ad valorem or 
                        a reduction of \1/10\ of the total reduction, 
                        whichever is greater, had taken effect on the 
                        effective date of the first reduction 
                        proclaimed under paragraph (1) to carry out 
                        such agreement with respect to such article; 
                        and
                            (ii) a reduction equal to the amount 
                        applicable under clause (i) had taken effect at 
1-year intervals after the effective date of such first reduction.
                    (B) Exemption from staging.--No staging under 
                subparagraph (A) is required with respect to a rate 
                reduction that is proclaimed under paragraph (1) for an 
                article of a kind that is not produced in the United 
                States. The United States International Trade 
                Commission shall advise the President of the identity 
                of articles that may be exempted from staging under 
                this subparagraph.
            (4) Rounding.--If the President determines that such action 
        will simplify the computation of reductions under paragraph 
        (3), the President may round an annual reduction by the lesser 
        of--
                    (A) the difference between the reduction without 
                regard to this paragraph and the next lower whole 
                number; or
                    (B) one-half of 1 percent ad valorem.
            (5) Other limitations.--A rate of duty reduction or 
        increase that may not be proclaimed by reason of paragraph (2) 
        may take effect only if a provision authorizing such reduction 
        or increase is included within an implementing bill provided 
        for under section 6 and that bill is enacted into law.
            (6) Expanded tariff proclamation authority.--
                    (A) In general.--Notwithstanding the provisions of 
                paragraphs (1) through (5), before December 31, 2005 
                (or before December 31, 2007 (or December 31, 2009), if 
                the authority provided by this Act is extended under 
                subsection (c)), and subject to the consultation and 
                layover requirements of section 115 of the Uruguay 
                Round Agreements Act (19 U.S.C. 3524) and the 
                notification and consultation requirements of section 
                5(a) of this Act, the President may proclaim the 
                modification of any duty, including any staged rate 
                reduction of any duty resulting from the Uruguay Round 
                Agreements, if the United States has agreed to such 
                modification or staged rate reduction in a negotiation 
                for the reciprocal elimination or harmonization of 
                duties, within the same tariff categories, under the 
                auspices of the WTO or as part of an interim agreement 
                leading to the formation of a regional free-trade area.
                    (B) Notice required.--The modification or staged 
                rate reduction authorized under subparagraph (A) with 
                respect to any negotiation initiated after the date of 
                enactment of this Act may be proclaimed only on 
                articles in tariff categories with respect to which the 
                President has provided notice in accordance with 
                section 5(a).
            (7) Tariff modifications under uruguay round agreements 
        act.--Nothing in this subsection shall limit the authority 
        provided to the President under section 111(b) of the Uruguay 
        Round Agreements Act.
    (b) Agreements Regarding Tariff and Nontariff Barriers.--
            (1) In general.--
                    (A) Determination by president.--Whenever the 
                President determines that--
                            (i) any duty or other import restriction 
                        imposed by any foreign country or the United 
                        States or any other barrier to, or other 
                        distortion of, international trade--
                                    (I) unduly burdens or restricts the 
                                foreign trade of the United States or 
                                adversely affects the United States 
                                economy; or
                                    (II) is likely to result in such a 
                                burden, restriction, or effect; and
                            (ii) the purposes and objectives of this 
                        Act will be promoted thereby, the President 
                        may, before December 31, 2005 (or before 
                        December 31, 2007, or December 31, 2009 
                        (whichever is applicable), if the authority 
                        provided under this Act is extended under 
                        subsection (c)) enter into a trade agreement 
                        described in subparagraph (B).
                    (B) Trade agreement described.--A trade agreement 
                described in this subparagraph means an agreement with 
                a foreign country that provides for--
                            (i) the reduction or elimination of such 
                        duty, restriction, barrier, or other 
                        distortion; or
                            (ii) the prohibition of, or limitation on 
                        the imposition of, such barrier or other 
                        distortion.
            (2) Conditions.--A trade agreement may be entered into 
        under this subsection only if the following conditions are met:
                    (A) Such agreement makes progress in meeting the 
                applicable objectives described in section 3(b).
                    (B) The President satisfies the conditions set 
                forth in section 5 with respect to such agreement.
                    (C) Such agreement includes in its text the 
                following language: ``No provision of this Agreement, 
                or any dispute resolution or enforcement mechanism 
                established hereunder, that interferes (through any 
                means) with, or amends, any law or standard (or the 
                application of such law or standard) of the United 
                States relating to health, safety, labor, environment, 
                or essential security, shall have any effect, nor shall 
                the United States be bound by or otherwise recognize 
                the validity of such provision.''.
            (3) Bills qualifying for trade agreement approval 
        procedures.--
                    (A) In general.--The provisions of section 151 of 
                the Trade Act of 1974 (in this Act referred to as 
                ``trade agreement approval procedures'') apply to 
                implementing bills submitted with respect to trade 
                agreements entered into under this subsection, except 
                that, for purposes of applying section 151(b)(1)--
                            (i) such implementing bills shall contain 
                        only--
                                    (I) provisions that approve a trade 
                                agreement entered into under this 
                                subsection and the statement of 
                                administrative action (if any) proposed 
                                to implement such trade agreement;
                                    (II) provisions necessary to 
                                implement such trade agreement; and
                                    (III) provisions necessary for 
                                purposes of complying with section 252 
                                of the Balanced Budget and Emergency 
                                Deficit Control Act of 1985 in 
                                implementing the applicable trade 
                                agreement;
                            (ii) the provisions of subparagraph (B) 
                        relating to points of order in the Senate shall 
                        apply; and
                            (iii) such implementing bills shall not 
                        contain any provision that changes the health, 
                        safety, labor, environmental, or essential 
                        security laws or standards of the United 
                        States.
                    (B) Point of order in senate.--
                            (i) In general.--
                                    (I) Point of order against 
                                implementing bill.--When the Senate is 
                                considering an implementing bill, upon 
                                a point of order being made by any 
                                Senator against any part of the 
                                implementing bill that contains 
                                material in violation of subparagraph 
                                (A)(i) (II) or (III) or subparagraph 
                                (A)(iii), and the point of order is 
                                sustained by the Presiding Officer, the 
                                part of the implementing bill against 
                                which the point of order is sustained 
                                shall be stricken from the bill.
                                    (II) Point of order against 
                                underlying agreement.--When the Senate 
                                is considering an implementing bill, 
                                upon a point of order being made by any 
                                Senator that a trade agreement entered 
                                into under this subsection does not 
                                satisfy the conditions set forth in 
                                paragraph (2)(C), and the point of 
                                order is sustained by the Presiding 
                                Officer, trade agreement approval 
                                procedures shall not apply to the 
                                implementing bill.
                            (ii) Waivers and appeals.--
                                    (I) Waivers.--Before the Presiding 
                                Officer rules on a point of order 
                                described in clause (i), any Senator 
                                may move to waive the point of order 
                                and the motion to waive shall not be 
                                subject to amendment. A point of order 
                                described in clause (i) is waived only 
                                by the affirmative vote of at least 
                                three-fifths of the Members of the 
                                Senate, duly chosen and sworn.
                                    (II) Appeals.--After the Presiding 
                                Officer rules on a point of order under 
                                this subparagraph, any Senator may 
                                appeal the ruling of the Presiding 
                                Officer on the point of order as it 
                                applies to some or all of the 
                                provisions on which the Presiding 
                                Officer ruled. A ruling of the 
                                Presiding Officer on a point of order 
                                described in clause (i) is sustained 
                                unless at least three-fifths of the 
                                Members of the Senate, duly chosen and 
                                sworn, vote not to sustain the ruling.
    (c) Extension Procedures.--
            (1) In general.--Except as provided in section 6(b)--
                    (A) subsections (a) and (b) shall apply with 
                respect to agreements entered into before December 31, 
                2005; and
                    (B) subsections (a) and (b) shall be extended to 
                apply with respect to agreements entered into on or 
                after December 31, 2005, and before December 31, 2007, 
                or December 31, 2009 (whichever is applicable), if (and 
                only if)--
                            (i) the President requests such extension 
                        under paragraph (2); and
                            (ii) Congress adopts an extension approval 
                        resolution under paragraph (5) before December 
                        31, 2005 (or before December 31, 2007, in the 
                        case of a second extension request).
            (2) Report to congress by the president.--If the President 
        is of the opinion that the authority under subsections (a) and 
        (b) should be extended, the President shall submit to Congress, 
        not later than July 1, 2005 (or July 1, 2007, in the case of a 
        second extension request), a written report that contains a 
        request for such extension, together with--
                    (A) a description of all trade agreements that have 
                been negotiated under subsections (a) and (b) and, 
                where applicable, the anticipated schedule for 
                submitting such agreements to Congress for approval;
                    (B) a description of the progress that has been 
                made in negotiations to achieve the purposes and 
                objectives set out in section 3 (a) and (b) of this 
                Act, and a statement that such progress justifies the 
                continuation of negotiations; and
                    (C) a statement of the reasons why the extension is 
                needed to complete the negotiations.
            (3) Report to congress by the advisory committee.--The 
        President shall promptly inform the Advisory Committee for 
        Trade Policy and Negotiations established under section 135 of 
        the Trade Act of 1974 (19 U.S.C. 2155) of the President's 
        decision to submit a report to Congress under paragraph (2). 
        The Advisory Committee shall submit to Congress as soon as 
        practicable, but not later than August 1, 2005 (or August 1, 
        2007, in the case of a second extension request), a written 
report that contains--
                    (A) its views regarding the progress that has been 
                made in negotiations to achieve the purposes and 
                objectives of this Act; and
                    (B) a statement of its views, and the reasons 
                therefor, regarding whether the extension requested 
                under paragraph (2) should be approved or disapproved.
            (4) Reports may be classified.--The reports submitted to 
        Congress under paragraphs (2) and (3), or any portion of the 
        reports, may be classified to the extent the President 
        determines appropriate.
            (5) Extension approval resolutions.--
                    (A) In general.--For purposes of this subsection, 
                the term ``extension approval resolution'' means a 
                joint resolution of the two Houses of Congress, the 
                matter after the resolving clause of which is as 
                follows: ``That the Congress approves the request of 
                the President for an extension, under section 4(c) of 
                the Trade Promotion Act of 2001, of __________ after 
                __________.'', with the first blank space being filled 
                with one or both of the following phrases: ``the tariff 
                proclamation authority provided under section 4(a) of 
                the Trade Promotion Act of 2001'' or ``the trade 
                agreement approval procedures provided under section 
                4(b) of the Trade Promotion Act of 2001'' and the 
                second blank space being filled with December 31, 2005, 
                in the case of the first extension request and December 
                31, 2007, in the case of the second extension request.
                    (B) Introduction and referral.--An extension 
                approval resolution--
                            (i) may be introduced in either House of 
                        Congress by any member of such House;
                            (ii) shall be jointly referred, in the 
                        House of Representatives, to the Committee on 
                        Ways and Means and the Committee on Rules; and
                            (iii) shall be referred, in the Senate, to 
                        the Committee on Finance.
                    (C) Floor consideration.--The provisions of 
                sections 152 (d) and (e) of the Trade Act of 1974 (19 
                U.S.C. 2192 (d) and (e)) (relating to the floor 
                consideration of certain resolutions in the House and 
                Senate) apply to an extension approval resolution.
                    (D) Final date for consideration.--It is not in 
                order for either House of Congress to consider an 
                extension approval resolution after December 31, 2007.

SEC. 5. NOTICE AND CONSULTATIONS.

    (a) Notice and Consultation Before Negotiation.--With respect to 
any agreement subject to the provisions of section 4 (a) or (b), the 
President shall--
            (1) not later than 90 calendar days before initiating 
        negotiations, provide written notice to Congress regarding--
                    (A) the President's intent to initiate the 
                negotiations;
                    (B) the date the President intends to initiate such 
                negotiations;
                    (C) the specific United States objectives for the 
                negotiations; and
                    (D) whether the President intends to seek an 
                agreement or changes to an existing agreement;
            (2) consult regarding the negotiations--
                    (A) before and promptly after submission of the 
                notice described in paragraph (1), with the Committee 
                on Finance of the Senate, the Committee on Ways and 
                Means of the House of Representatives, and such other 
                committees of the House and Senate as the President 
                deems appropriate; and
                    (B) with any other committee that requests 
                consultations in writing; and
            (3) consult with the appropriate industry sector advisory 
        committees established under section 135 of the Trade Act of 
        1974 before initiating negotiations.
    (b) Consultation With Congress Before Agreement Entered Into.--
            (1) Consultation.--Before entering into any trade agreement 
        under section 4 (a) or (b), the President shall consult with--
                    (A) the Committee on Ways and Means of the House of 
                Representatives and the Committee on Finance of the 
                Senate; and
                    (B) each other committee of the House and the 
                Senate, and each joint committee of Congress, which has 
                jurisdiction over legislation involving subject matters 
                that would be affected by the trade agreement.
            (2) Scope.--The consultation described in paragraph (1) 
        shall include consultation with respect to--
                    (A) the nature of the agreement;
                    (B) how and to what extent the agreement will 
                achieve the applicable purposes and objectives of this 
                Act;
                    (C) where applicable, the implementation of the 
                agreement under section 6, including whether the 
                agreement includes subject matter for which 
                supplemental implementing legislation may be required 
                which is not subject to trade agreement approval 
                procedures; and
                    (D) any other agreement the President has entered 
                into or intends to enter into with the country or 
                countries in question.
    (c) Advisory Committee Reports.--The report required under section 
135(e)(1) of the Trade Act of 1974 regarding any trade agreement 
entered into under section 4(b) of this Act shall be provided to the 
President, Congress, and the United States Trade Representative not 
later than 30 calendar days after the date on which the President 
notifies Congress under section 6(a)(1)(A) of the President's intention 
to enter into the agreement.
    (d) Consultation Before Agreement Initialed.--In the course of 
negotiations conducted under this Act, the United States Trade 
Representative shall consult closely and on a timely basis (including 
immediately before initialing an agreement) with, and keep 
fully apprised of the negotiations, the congressional advisers for 
trade policy and negotiations appointed under section 161 of the Trade 
Act of 1974 (19 U.S.C. 2211), the Committee on Finance of the Senate, 
and the Committee on Ways and Means of the House of Representatives.

SEC. 6. IMPLEMENTATION OF TRADE AGREEMENTS.

    (a) In General.--
            (1) Notification and submission.--Any agreement entered 
        into under section 4(b) shall enter into force with respect to 
        the United States if (and only if)--
                    (A) the President, at least 90 calendar days before 
                the day on which the President enters into the trade 
                agreement, notifies Congress of the President's 
                intention to enter into the agreement, and promptly 
                thereafter publishes notice of such intention in the 
                Federal Register;
                    (B) within 60 calendar days after entering into the 
                agreement, the President submits to Congress a 
                description of those changes to existing laws that the 
                President considers would be required in order to bring 
                the United States into compliance with the agreement;
                    (C) after entering into the agreement, the 
                President submits a copy of the final legal text of the 
                agreement, together with--
                            (i) a draft of an implementing bill 
                        described in section 4(b)(3);
                            (ii) a statement of any administrative 
                        action proposed to implement the trade 
                        agreement; and
                            (iii) the supporting information described 
                        in paragraph (2); and
                    (D) the implementing bill is enacted into law.
            (2) Supporting information.--The supporting information 
        required under paragraph (1)(C)(iii) consists of--
                    (A) an explanation as to how the implementing bill 
                and proposed administrative action will change or 
                affect existing law; and
                    (B) a statement--
                            (i) asserting that the agreement makes 
                        progress in achieving the applicable purposes 
                        and objectives of this Act; and
                            (ii) setting forth the reasons of the 
                        President regarding--
                                    (I) how and to what extent the 
                                agreement makes progress in achieving 
                                the applicable purposes and objectives 
                                referred to in clause (i), and why and 
                                to what extent the agreement does not 
                                achieve other applicable purposes and 
                                objectives;
                                    (II) whether and how the agreement 
                                changes provisions of an agreement 
                                previously negotiated;
                                    (III) how the agreement serves the 
                                interests of United States commerce;
                                    (IV) why the implementing bill 
                                qualifies for trade agreement approval 
                                procedures under section 4(b)(3); and
                                    (V) any proposed administrative 
                                action.
            (3) Reciprocal benefits.--To ensure that a foreign country 
        which receives benefits under a trade agreement entered into 
        under section 4 (a) or (b) is subject to the obligations 
        imposed by such agreement, the President shall recommend to 
        Congress in the implementing bill and statement of 
        administrative action submitted with respect to such 
agreement that the benefits and obligations of such agreement apply 
solely to the parties to such agreement, if such application is 
consistent with the terms of such agreement. The President may also 
recommend with respect to any such agreement that the benefits and 
obligations of such agreement not apply uniformly to all parties to 
such agreement, if such application is consistent with the terms of 
such agreement.
    (b) Limitations on Trade Agreement Approval Procedures.--
            (1) Disapproval of the negotiation.--The trade agreement 
        approval procedures shall not apply to any implementing bill 
        that contains a provision approving any trade agreement that is 
        entered into under section 4(b) with any foreign country if the 
        Committee on Finance of the Senate and the Committee on Ways 
        and Means of the House of Representatives disapprove of the 
        negotiation of the agreement before the close of the 90-
        calendar day period that begins on the date notice is provided 
        under section 5(a)(1) with respect to the negotiation of such 
        agreement.
            (2) Lack of notice or consultations.--
                    (A) In general.--The trade agreement approval 
                procedures shall not apply to any implementing bill 
                submitted with respect to a trade agreement entered 
                into under section 4(b) if during the 60-day period 
                beginning on the date that 1 House of Congress agrees 
                to a procedural disapproval resolution for lack of 
                notice or consultations with respect to that trade 
                agreement, the other House separately agrees to a 
                procedural disapproval resolution with respect to that 
                agreement.
                    (B) Procedural disapproval resolution.--For 
                purposes of this paragraph, the term ``procedural 
                disapproval resolution'' means a resolution of either 
                House of Congress, the sole matter after the resolving 
                clause of which is as follows: ``That the President has 
                failed or refused to notify or consult (as the case may 
                be) with Congress in accordance with sections 5 and 6 
                of the Trade Promotion Act of 2001 with respect to 
                __________ and, therefore, the trade agreement approval 
                procedures set forth in section 4(b) of that Act shall 
                not apply to any implementing bill submitted with 
                respect to that trade agreement.'', with the blank 
                space being filled with a description of the trade 
                agreement with respect to which the President is 
                considered to have failed or refused to notify or 
                consult.
                    (C) Computation of certain periods of time.--The 
                60-day period of time described in subparagraph (A) 
                shall be computed without regard to--
                            (i) the days on which either House of 
                        Congress is not in session because of an 
                        adjournment of more than 3 days to a day 
                        certain or an adjournment of Congress sine die; 
                        and
                            (ii) any Saturday and Sunday, not excluded 
                        under clause (i), when either House of Congress 
                        is not in session.
            (3) Procedures for considering procedural disapproval 
        resolution.--
                    (A) Procedural disapproval resolution.--A 
                procedural disapproval resolution--
                            (i) in the House of Representatives--
                                    (I) shall be introduced by the 
                                chairman or ranking minority member of 
                                the Committee on Ways and Means or the 
                                chairman or ranking minority member of 
                                the Committee on Rules;
                                    (II) shall be jointly referred to 
                                the Committee on Ways and Means and the 
                                Committee on Rules; and
                                    (III) may not be amended by either 
                                Committee; and
                            (ii) in the Senate, shall be an original 
                        resolution of the Committee on Finance.
                    (B) Floor consideration.--The provisions of section 
                152 (d) and (e) of the Trade Act of 1974 (19 U.S.C. 
                2192 (d) and (e)) (relating to the floor consideration 
                of certain resolutions in the House and Senate) apply 
                to a procedural disapproval resolution.
                    (C) Committee action required.--
                            (i) House of representatives.--It is not in 
                        order for the House of Representatives to 
                        consider any procedural disapproval resolution 
                        not reported by the Committee on Ways and Means 
                        and the Committee on Rules.
                            (ii) Senate.--It is not in order for the 
                        Senate to consider any procedural disapproval 
                        resolution not reported by the Committee on 
                        Finance.
    (c) Rules of House of Representatives and Senate.--Subsection (b) 
of this section and section 4 (b) and (c) are enacted by Congress--
            (1) as an exercise of the rulemaking power of the House of 
        Representatives and the Senate, respectively, and as such are 
        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. TREATMENT OF CERTAIN TRADE AGREEMENTS.

    (a) In General.--Notwithstanding section 4(a)(6)(B) and section 
4(b)(2), the provisions of section 5(a) shall not apply with respect to 
any agreement that results from--
            (1) negotiations under the auspices of the WTO regarding 
        trade in information technology products;
            (2) negotiations or work programs initiated pursuant to a 
        Uruguay Round Agreement, as defined in section 2 of the Uruguay 
        Round Agreements Act;
            (3) negotiations with Chile, Singapore, Australia, or New 
        Zealand; or
            (4) negotiations to achieve a free trade area of the 
        Americas,
that was commenced before the date of enactment of this Act, and the 
applicability of trade agreement approval procedures with respect to 
such agreements shall be determined without regard to the requirements 
of section 5(a).
    (b) Procedural Disapproval Resolution Not in Order.--A procedural 
disapproval resolution under section 6(b) shall not be in order with 
respect to an agreement described in subsection (a) of this section 
based on a failure or refusal to comply with section 5(a).

SEC. 8. CONFORMING AMENDMENTS.

    (a) In General.--Title I of the Trade Act of 1974 (19 U.S.C. 2111 
et seq.) is amended as follows:
            (1) Implementing bill.--
                    (A) Section 151(b)(1) (19 U.S.C. 2191(b)(1)) is 
                amended--
                            (i) by striking ``section 1103(a)(1) of the 
                        Omnibus Trade and Competitiveness Act of 1988, 
                        or section 282 of the Uruguay Round Agreements 
                        Act'' and inserting ``section 282 of the 
                        Uruguay Round Agreements Act, or section 
                        6(a)(1) of the Trade Promotion Act of 2001''; 
                        and
                            (ii) by adding after subparagraph (C) the 
                        following flush sentence:
        For purposes of applying this paragraph to implementing bills 
        submitted with respect to trade agreements entered into under 
        section 4(b) of the Trade Promotion Act of 2001, clauses (i), 
        (ii), and (iii) of section 4(b)(3)(A) of such Act shall be 
        substituted for subparagraphs (A), (B), and (C) of this 
        paragraph.''.
                    (B) Section 151(c)(1) (19 U.S.C. 2191(c)(1)) is 
                amended by striking ``or section 282 of the Uruguay 
                Round Agreements Act'' and inserting ``, section 282 of 
                the Uruguay Round Agreements Act, or section 6(a)(1) of 
                the Trade Promotion Act of 2001''.
            (2) Advice from international trade commission.--Section 
        131 (19 U.S.C. 2151) is amended--
                    (A) in subsection (a)--
                            (i) in paragraph (1), by striking ``section 
                        123 of this Act or section 1102 (a) or (c) of 
                        the Omnibus Trade and Competitiveness Act of 
                        1988,'' and inserting ``section 123 of this Act 
or section 4 (a) or (b) of the Trade Promotion Act of 2001,''; and
                            (ii) in paragraph (2), by striking 
                        ``section 1102 (b) or (c) of the Omnibus Trade 
                        and Competitiveness Act of 1988'' and inserting 
                        ``section 4(b) of the Trade Promotion Act of 
                        2001'';
                    (B) in subsection (b), by striking ``section 
                1102(a)(3)(A)'' and inserting ``section 4(a)(3)(A) of 
                the Trade Promotion Act of 2001'' before the end 
                period; and
                    (C) in subsection (c), by striking ``section 1102 
                of the Omnibus Trade and Competitiveness Act of 1988,'' 
                and inserting ``section 4 of the Trade Promotion Act of 
                2001,''.
            (3) Hearings and advice.--Sections 132, 133(a), and 134(a) 
        (19 U.S.C. 2152, 2153(a), and 2154(a)) are each amended by 
        striking ``section 1102 of the Omnibus Trade and 
        Competitiveness Act of 1988,'' each place it appears and 
        inserting ``section 4 of the Trade Promotion Act of 2001,''.
            (4) Prerequisites for offers.--Section 134(b) (19 U.S.C. 
        2154(b)) is amended by striking ``section 1102 of the Omnibus 
        Trade and Competitiveness Act of 1988'' and inserting ``section 
        4 of the Trade Promotion Act of 2001''.
            (5) Advice from private and public sectors.--Section 135 
        (19 U.S.C. 2155) is amended--
                    (A) in subsection (a)(1)(A), by striking ``section 
                1102 of the Omnibus Trade and Competitiveness Act of 
                1988'' and inserting ``section 4 of the Trade Promotion 
                Act of 2001'';
                    (B) in subsection (e)(1)--
                            (i) by striking ``section 1102 of the 
                        Omnibus Trade and Competitiveness Act of 1988'' 
                        each place it appears and inserting ``section 4 
                        of the Trade Promotion Act of 2001''; and
                            (ii) by striking ``section 1103(a)(1)(A) of 
                        such Act of 1988'' and inserting ``section 
                        6(a)(1)(A) of the Trade Promotion Act of 
                        2001''; and
                    (C) in subsection (e)(2), by striking ``the 
                applicable overall and principal negotiating objectives 
                set forth in section 1101 of the Omnibus Trade and 
                Competitiveness Act of 1988'' and inserting ``the 
                purposes and objectives set forth in section 3 (a) and 
                (b) of the Trade Promotion Act of 2001''.
            (6) Transmission of agreements to congress.--Section 162(a) 
        (19 U.S.C. 2212(a)) is amended by striking ``or under section 
        1102 of the Omnibus Trade and Competitiveness Act of 1988'' and 
        inserting ``or under section 4 of the Trade Promotion Act of 
        2001''.
    (b) Application of Certain Provisions.--For purposes of applying 
sections 125, 126, and 127 of the Trade Act of 1974 (19 U.S.C. 2135, 
2136(a), and 2137)--
            (1) any trade agreement entered into under section 4 shall 
        be treated as an agreement entered into under section 101 or 
        102, as appropriate, of the Trade Act of 1974 (19 U.S.C. 2111 
        or 2112); and
            (2) any proclamation or Executive order issued pursuant to 
        a trade agreement entered into under section 4 shall be treated 
        as a proclamation or Executive order issued pursuant to a trade 
        agreement entered into under section 102 of the Trade Act of 
        1974.

SEC. 9. DEFINITIONS.

    In this Act:
            (1) Distortion.--The term ``distortion'' includes, but is 
        not limited to, a subsidy.
            (2) Trade.--The term ``trade'' includes, but is not limited 
        to--
                    (A) trade in both goods and services; and
                    (B) foreign investment by United States persons, 
                especially if such investment has implications for 
                trade in goods and services.
            (3) Uruguay round agreements.--The term ``Uruguay Round 
        Agreements'' has the meaning given such term in section 2(7) of 
        the Uruguay Round Agreements Act (19 U.S.C. 3501(7)).
            (4) World trade organization.--The term ``World Trade 
        Organization'' means the organization established pursuant to 
        the WTO Agreement.
            (5) WTO agreement.--The term ``WTO Agreement'' means the 
        Agreement Establishing the World Trade Organization entered 
        into on April 15, 1994.
            (6) WTO and wto member.--The terms ``WTO'' and ``WTO 
        member'' have the meanings given those terms in section 2 of 
        the Uruguay Round Agreements Act (19 U.S.C. 3501).
                                 <all>
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