II

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.

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

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘Trade Promotion Act

5 of 2001’’.

6 SEC. 2. FINDINGS.

7 Congress finds that—

8 (1) international trade and investment are pow9 erful engines of economic growth that help create
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1 the culture of liberty and the economic wealth need2 ed to build and sustain support for better working

3 conditions and improved environmental protection

4 around the world;

5 (2) in the United States, free and fair trade

6 maximizes efficient use of resources, opens new mar7 kets and new opportunities for American businesses,

8 farmers, agricultural producers, and families, and

9 provides new and better-paying jobs for American

10 workers;

11 (3) in the international system, broader and

12 more comprehensive trade agreements will provide

13 developing countries with greater access to world

14 markets, create new opportunities for upward eco15 nomic mobility, and decrease differentials that cur16 rently exist between rich and poor;

17 (4) reducing barriers to trade is a fundamental

18 foreign and domestic policy interest of the United

19 States and therefore the successful negotiation of re20 ciprocal trade agreements on a bilateral, regional,

21 and multilateral basis is a high priority for the

22 United States;

23 (5) the pursuit of policies to ease short-term

24 dislocations and adjustment problems that can result

25 from expanded trade relations is an appropriate sub-
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1 ject for consideration in the context of bilateral, re2 gional, and multilateral trade negotiations between

3 the United States and foreign countries, and would

4 be an important objective for discussions between

5 the United States and other World Trade Organiza6 tion (in this Act, referred to as the ‘‘WTO’’) mem7 bers in a new round of global talks to expand the

8 international trading system;

9 (6) in order to best serve the trade policy inter10 ests of the United States in a wide range of bilat11 eral, regional, and multilateral trade negotiations,

12 the President should have a clear and flexible negoti13 ating mandate that will optimize the ability of the

14 United States to assert leadership in international

15 discussions, and provide United States negotiators

16 with the maximum opportunity to secure the most

17 favorable result for the United States; and

18 (7) an appropriate delegation of trade negoti19 ating authority to the President is necessary for the

20 United States to exert the leadership necessary to

21 achieve the important policy objectives served by re22 ducing barriers to international trade.
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1 SEC. 3. TRADE NEGOTIATING OBJECTIVES OF THE UNITED

2 STATES.

3 (a) STATEMENT OF PURPOSES.—The purposes of

4 this Act are to achieve, through trade agreements that af5 ford mutual benefits—

6 (1) more open, equitable, and reciprocal market

7 access for United States goods, services, and invest8 ment;

9 (2) the reduction or elimination of barriers and

10 other trade-distorting policies and practices;

11 (3) a more effective system of international

12 trading rules and procedures; and

13 (4) economic growth, higher living standards,

14 and full employment in the United States, and eco15 nomic growth and development among the trading

16 partners of the United States.

17 (b) PRINCIPAL TRADE NEGOTIATING OBJECTIVES.—

18 (1) GENERAL RULE.—The principal objective of

19 trade agreements is to expand the freedom to trade

20 and invest, and in the process expand jobs, economic

21 growth, and opportunity. In pursuing the negoti22 ating objectives described in subparagraphs (A)

23 through (N) of paragraph (2), United States nego24 tiators shall take into account legitimate United

25 States domestic objectives, including protection of
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1 health, safety, essential security, environmental, con2 sumer, and employment opportunity interests.

3 (2) NEGOTIATING OBJECTIVES.—The principal

4 trade negotiating objectives of the United States for

5 agreements subject to the provisions of section 4 in6 clude the following:

7 (A) TRADE IN GOODS.—The principal ne8 gotiating objective of the United States regard9 ing barriers to trade in goods is to obtain com10 petitive opportunities for United States exports

11 in foreign markets substantially equivalent to

12 the opportunities afforded foreign exports to

13 United States markets, including the reduction

14 or elimination of tariff and nontariff trade bar15 riers, including—

16 (i) tariff and nontariff disparities re17 maining from previous rounds of multilat18 eral trade negotiations that have put

19 United States exports at a competitive dis20 advantage in world markets;

21 (ii) measures identified in the annual

22 report prepared under section 181 of the

23 Trade Act of 1974 (19 U.S.C. 2241);

24 (iii) tariff elimination for products

25 identified in section 111(b) of the Uruguay
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1 Round Agreements Act (19 U.S.C.

2 3521(b)) and the accompanying Statement

3 of Administrative Action related to that

4 section; and

5 (iv) the negotiating objectives regard6 ing trade in civil aircraft set forth in sec7 tion 135 of the Uruguay Round Agree8 ments Act (19 U.S.C. 3355 et seq.).

9 (B) TRADE IN SERVICES.—The principal

10 negotiating objectives of the United States re11 garding trade in services are—

12 (i) to reduce or eliminate barriers to,

13 or other distortions of, international trade

14 in services in General Agreement on Trade

15 in Services negotiations and other multilat16 eral and bilateral negotiations by—

17 (I) achieving maximum liberaliza18 tion of market access in all modes of

19 supply;

20 (II) removing regulatory and

21 other barriers that deny national

22 treatment or unreasonably restrict the

23 establishment of and operation of

24 service suppliers in foreign markets;

25 and
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1 (III) seeking full market access

2 and national treatment for services es3 sential to supporting electronic com4 merce and for services sectors that

5 have not received significant WTO

6 market opening efforts; and

7 (ii) to develop internationally agreed

8 rules, including dispute settlement proce9 dures, that—

10 (I) are consistent with the com11 mercial policies of the United States;

12 and

13 (II) will reduce or eliminate such

14 barriers or distortions, and help en15 sure fair, equitable opportunities for

16 foreign markets.

17 (C) AGRICULTURE.—The principal negoti18 ating objectives of the United States with re19 spect to agriculture are, in addition to those set

20 forth in section 1123(b) of the Food Security

21 Act of 1985 (7 U.S.C. 1736r(b)), to achieve, on

22 an expedited basis to the maximum extent fea23 sible, more open and fair conditions of trade in

24 agricultural commodities by—
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1 (i) developing, strengthening, and

2 clarifying rules for agricultural trade, in3 cluding disciplines on restrictive or trade4 distorting import and export practices such

5 as those that would impact perishable or

6 cyclical products;

7 (ii) increasing United States agricul8 tural exports by eliminating barriers to

9 trade (including transparent and nontrans10 parent barriers) and reducing or elimi11 nating the subsidization of agricultural

12 production consistent with the United

13 States policy of agricultural stabilization in

14 cyclical and unpredictable markets;

15 (iii) creating a free and more open

16 world agricultural trading system by re17 solving questions pertaining to export and

18 other trade-distorting subsidies, market

19 pricing, and market access;

20 (iv) eliminating or reducing substan21 tially other specific constraints to fair

22 trade and more open market access, such

23 as tariffs, quotas, and other nontariff prac24 tices; and
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1 (v) developing, strengthening, and

2 clarifying rules that address practices that

3 unfairly decrease United States market ac4 cess opportunities or distort agricultural

5 markets to the detriment of the United

6 States, including—

7 (I) unfair or trade-distorting ac8 tivities of State trading enterprises

9 and other administrative mechanisms,

10 including lack of price transparency;

11 (II) restrictions or commercial

12 requirements affecting new tech13 nologies, including biotechnology, that

14 are not based on sound science;

15 (III) sanitary or phytosanitary

16 restrictions not based on sound

17 science;

18 (IV) other unjustified technical

19 barriers to trade; and

20 (V) restrictive rules in the ad21 ministration of tariff-rate quotas.

22 (D) FOREIGN INVESTMENT.—The prin23 cipal negotiating objectives of the United States

24 regarding foreign investment are—
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1 (i) to reduce or eliminate artificial or

2 trade-distorting barriers to foreign invest3 ment, expand the principle of national

4 treatment, and reduce unreasonable bar5 riers to establishment; and

6 (ii) to develop international rules

7 through the negotiation of investment

8 agreements, including dispute settlement

9 procedures, that—

10 (I) will help ensure a free flow of

11 foreign investment; and

12 (II) will reduce or eliminate the

13 trade distortive effects of certain

14 trade-related investment measures.

15 (E) INTELLECTUAL PROPERTY.—The prin16 cipal negotiating objectives of the United States

17 regarding intellectual property are—

18 (i) to further promote adequate and

19 effective protection of intellectual property

20 rights, by—

21 (I) seeking the enactment and ef22 fective enforcement by foreign govern23 ments of laws that—

24 (aa) recognize and ade25 quately protect intellectual prop-
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1 erty, including copyrights, pat2 ents, trademarks, semiconductor

3 chip layout designs, bio4 technology, trade names, and

5 trade secrets; and

6 (bb) provide protection

7 against unfair competition;

8 (II) ensuring the full implemen9 tation of the Agreement on Trade-Re10 lated Aspects of Intellectual Property

11 Rights referred to in section

12 101(d)(15) of the Uruguay Round

13 Agreements Act (19 U.S.C.

14 3511(d)(15)), and achieving improve15 ments in the standards of that Agree16 ment;

17 (III) providing strong protection

18 for new and emerging technologies

19 and electronic and other new methods

20 of transmitting and distributing prod21 ucts embodying intellectual property;

22 (IV) preventing or eliminating

23 discrimination with respect to matters

24 affecting the availability, acquisition,

25 scope, maintenance, use, and enforce-
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1 ment of intellectual property rights;

2 and

3 (V) providing for protection of

4 intellectual property rights through

5 accessible, expeditious, and effective

6 civil, administrative, and criminal en7 forcement mechanisms;

8 (ii) to secure fair, equitable, and non9 discriminatory market access opportunities

10 for United States persons that rely on in11 tellectual property protection; and

12 (iii) to recognize that the inclusion in

13 the WTO of—

14 (I) adequate and effective sub15 stantive norms and standards for the

16 protection and enforcement of intellec17 tual property rights; and

18 (II) dispute settlement provisions

19 and enforcement procedures,

20 is without prejudice to complementary ini21 tiatives undertaken in other international

22 organizations.

23 (F) ELECTRONIC COMMERCE AND INFOR24 MATION TECHNOLOGIES.—The principal trade

25 negotiating objectives of the United States re-
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1 garding electronic commerce and information

2 technologies are—

3 (i) to reduce or eliminate tariff and

4 nontariff barriers with respect to informa5 tion technology products;

6 (ii) to pursue the continued develop7 ment of electronic commerce in an environ8 ment that is free of trade barriers;

9 (iii) to achieve trade liberalization in

10 related goods and services that facilitate

11 the growth of electronic commerce; and

12 (iv) to eliminate barriers to online de13 livery of electronic content.

14 (G) WORKER RIGHTS.—The principal

15 trade negotiating objectives of the United

16 States regarding worker rights are—

17 (i) to ensure that foreign labor,

18 health, and safety policies and practices do

19 not arbitrarily or unjustifiably discriminate

20 against United States exports or constitute

21 a barrier to trade; and

22 (ii) to secure the commitment of for23 eign governments to not derogate from or

24 waive existing domestic labor (including

25 measures that deter exploitative child
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1 labor), health and safety standards for the

2 purpose of attracting investment, inhib3 iting United States exports, or otherwise

4 gaining competitive advantage.

5 (H) ENVIRONMENT.—The principal trade

6 negotiating objectives of the United States re7 garding environment are—

8 (i) to ensure that foreign environ9 mental protection policies and practices do

10 not arbitrarily or unjustifiably discriminate

11 against United States exports or constitute

12 a barrier to trade;

13 (ii) to secure the commitment of for14 eign governments to not derogate from or

15 waive existing domestic environmental

16 standards for the purpose of attracting in17 vestment, inhibiting United States exports,

18 or otherwise gaining competitive advan19 tage; and

20 (iii) to achieve maximum trade liberal21 ization and market access for United

22 States environmental technologies, goods,

23 and services.

24 (I) COMPLIANCE AND ENFORCEMENT.—

25 The principal negotiating objective on compli-
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1 ance and enforcement is the inclusion in trade

2 agreements of mechanisms for early identifica3 tion of implementation problems, monitoring of

4 compliance with agreements, and appropriate

5 enforcement of obligations.

6 (J) DISPUTE SETTLEMENT.—The principal

7 negotiating objectives of the United States with

8 respect to dispute settlement are—

9 (i) to provide for transparent, effec10 tive, and expeditious dispute settlement

11 mechanisms and procedures in any trade

12 agreement entered into under this author13 ity; and

14 (ii) to ensure that such mechanisms

15 within the WTO and agreements concluded

16 under the auspices of the WTO provide for

17 more effective and expeditious resolution of

18 disputes and enable better enforcement of

19 United States rights.

20 (K) UNFAIR TRADE PRACTICES.—The

21 principal negotiating objectives of the United

22 States with respect to unfair trade practices

23 are—

24 (i) to enhance the operation and effec25 tiveness of the relevant Uruguay Round
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1 Agreements and any other agreements de2 signed to define, deter, discourage the per3 sistent use of, and otherwise restrict, un4 fair trade practices having adverse trade

5 effects, including forms of subsidy and

6 dumping not adequately disciplined, such

7 as resource input subsidies, diversionary

8 dumping, dumped or subsidized inputs,

9 third country dumping, circumvention of

10 antidumping or countervailing duty orders,

11 and export targeting practices; and

12 (ii) to obtain the enforcement of WTO

13 rules against—

14 (I) trade-distorting practices of

15 State trading enterprises; and

16 (II) the acts, practices, or policies

17 of any foreign government which, as a

18 practical matter, unreasonably require

19 that—

20 (aa) substantial direct in21 vestment in the foreign country

22 be made;

23 (bb) intellectual property be

24 licensed to the foreign country or
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1 to any firm of the foreign coun2 try; or

3 (cc) other collateral conces4 sions be made,

5 as a condition for the importation of

6 any product or service of the United

7 States into the foreign country or as

8 a condition for carrying on business in

9 the foreign country.

10 (L) WTO AND MULTILATERAL TRADE

11 AGREEMENTS.—The principal negotiating objec12 tives of the United States regarding the WTO

13 and other multilateral trade agreements are—

14 (i) to improve the operation of the

15 WTO, and extend the coverage of the Uru16 guay Round Agreements and other multi17 lateral agreements to products, sectors,

18 and conditions of trade not adequately cov19 ered; and

20 (ii) to expand country participation in

21 agreements, where appropriate.

22 (M) TRANSPARENCY.—The principal nego23 tiating objective of the United States regarding

24 transparency is to obtain broader application of

25 the principle of transparency through increased
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1 public access to information regarding trade

2 issues, clarification of the costs and benefits of

3 trade policy actions, progress toward the elimi4 nation of corrupt business practices and the ob5 servance of open and equitable procedures by

6 United States trading partners and within the

7 WTO.

8 (N) REGULATORY COMPETITION.—The

9 principal trade negotiating objective of the

10 United States regarding regulatory competition

11 is—

12 (i) the elimination of measures such

13 as price controls, reference pricing, and

14 other practices by foreign governments to

15 provide a competitive advantage to their

16 domestic producers, service providers, or

17 investors and thereby reduce market access

18 for United States goods, services, and in19 vestment;

20 (ii) the establishment by foreign gov21 ernments of regulatory requirements which

22 are consistent with sound scientific prin23 ciples; and

24 (iii) to ensure that government regula25 tion and other governmental practices do
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1 not discriminate against United States

2 goods, services, or investment.

3 (c) COMPLEMENTARY OBJECTIVES.—The President

4 should take into account the relationship between trade

5 agreements and other important priorities of the United

6 States and seek to ensure that the trade agreements en7 tered into by the United States complement and reinforce

8 other policy goals. The United States priorities in this

9 area include—

10 (1) supplementing and strengthening standards

11 for protection of intellectual property rights under

12 conventions designed to protect such rights that are

13 administered by international organizations other

14 than the WTO, expanding the conventions to cover

15 new and emerging technologies, and eliminating dis16 crimination and unreasonable exceptions or pre17 conditions to such protection;

18 (2) fostering stability in international currency

19 markets and developing mechanisms to assure great20 er coordination, consistency, and cooperation be21 tween international trade and monetary systems and

22 institutions in order to protect against the trade

23 consequences of significant and unanticipated cur24 rency movements;

25 (3) promoting respect for workers’ rights, by—
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1 (A) reviewing the relationship between

2 workers’ rights and the operation of inter3 national trading systems and specific trade ar4 rangements; and

5 (B) seeking the effective implementation in

6 the International Labor Organization (in this

7 Act, referred to as the ‘‘ILO’’) of the Declara8 tion on Fundamental Principles and Rights at

9 Work and its monitoring mechanism to ensure

10 the systematic examination of, and reporting

11 on, the extent to which ILO members promote

12 and enforce the freedom of association, the

13 right to organize and bargain collectively, a pro14 hibition on the use of forced labor, a prohibition

15 on exploitative child labor, and a prohibition on

16 discrimination in employment;

17 (4) expanding the production of goods and

18 trade in goods and services to ensure the optimal

19 use of the world’s resources, while seeking to protect

20 and preserve the environment and to enhance the

21 international means for doing so;

22 (5) supporting United States counternarcotics

23 strategy by promoting export diversification and

24 broad-based economic development in countries and

25 regions engaged in drug-crop production in order to
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1 create viable alternatives to production of and trade

2 in illicit drugs;

3 (6) fostering international peace and security by

4 encouraging the development of the rule of law, civil

5 society and democracy; the practice of good govern6 ance principles; the protection of human rights; and

7 religious tolerance in countries and markets with

8 which the United States trades; and

9 (7) reducing illegal migration across inter10 national borders by promoting economic growth and

11 development in countries and regions experiencing

12 mass emigration, and thereby providing enhanced

13 local employment opportunities for would-be

14 emigrees.

15 SEC. 4. TRADE AGREEMENT NEGOTIATING AUTHORITY.

16 (a) TARIFF PROCLAMATION AUTHORITY.—

17 (1) IN GENERAL.—Whenever the President de18 termines that 1 or more existing duties or other im19 port restrictions of any foreign country or the

20 United States are unduly burdening and restricting

21 the foreign trade of the United States and that the

22 purposes and objectives of this Act will be promoted

23 thereby, the President—

24 (A) may enter into trade agreements with

25 foreign governments before—
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1 (i) December 31, 2005; or

2 (ii) December 31, 2007, if the author3 ity provided by this Act is extended under

4 subsection (c) (or December 31, 2009, if a

5 second extension is approved); and

6 (B) may, consistent with paragraphs (2)

7 through (5), proclaim—

8 (i) such modification or continuance

9 of any existing duty;

10 (ii) such continuance of existing duty11 free or excise treatment; or

12 (iii) such additional duties,

13 as the President determines to be required or

14 appropriate to carry out any such trade agree15 ment.

16 (2) LIMITATIONS.—No proclamation may be

17 made under paragraph (1) that—

18 (A) reduces any rate of duty (other than a

19 rate of duty that does not exceed 5 percent ad

20 valorem on the date of enactment of this Act)

21 to a rate which is less than 50 percent of the

22 rate of such duty that applies on such date of

23 enactment;

24 (B) provides for a reduction of duty on an

25 article to take effect on a date that is more
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1 than 10 years after the first reduction that is

2 proclaimed to carry out a trade agreement with

3 respect to such article; or

4 (C) increases any rate of duty above the

5 rate that applied on the date of enactment of

6 this Act.

7 (3) AGGREGATE REDUCTION; EXEMPTION FROM

8 STAGING.—

9 (A) AGGREGATE REDUCTION.—Except as

10 provided in subparagraph (B), the aggregate re11 duction in the rate of duty on any article which

12 is in effect on any day pursuant to a trade

13 agreement entered into under paragraph (1)

14 shall not exceed the aggregate reduction which

15 would have been in effect on such day if—

16 (i) a reduction of 3 percent ad valorem or a reduction of 1 17 ⁄10 of the total re18 duction, whichever is greater, had taken ef19 fect on the effective date of the first reduc20 tion proclaimed under paragraph (1) to

21 carry out such agreement with respect to

22 such article; and

23 (ii) a reduction equal to the amount

24 applicable under clause (i) had taken effect
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1 at 1-year intervals after the effective date

2 of such first reduction.

3 (B) EXEMPTION FROM STAGING.—No

4 staging under subparagraph (A) is required

5 with respect to a rate reduction that is pro6 claimed under paragraph (1) for an article of a

7 kind that is not produced in the United States.

8 The United States International Trade Com9 mission shall advise the President of the iden10 tity of articles that may be exempted from stag11 ing under this subparagraph.

12 (4) ROUNDING.—If the President determines

13 that such action will simplify the computation of re14 ductions under paragraph (3), the President may

15 round an annual reduction by the lesser of—

16 (A) the difference between the reduction

17 without regard to this paragraph and the next

18 lower whole number; or

19 (B) one-half of 1 percent ad valorem.

20 (5) OTHER LIMITATIONS.—A rate of duty re21 duction or increase that may not be proclaimed by

22 reason of paragraph (2) may take effect only if a

23 provision authorizing such reduction or increase is

24 included within an implementing bill provided for

25 under section 6 and that bill is enacted into law.
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1 (6) EXPANDED TARIFF PROCLAMATION AU2 THORITY.—

3 (A) IN GENERAL.—Notwithstanding the

4 provisions of paragraphs (1) through (5), before

5 December 31, 2005 (or before December 31,

6 2007 (or December 31, 2009), if the authority

7 provided by this Act is extended under sub8 section (c)), and subject to the consultation and

9 layover requirements of section 115 of the Uru10 guay Round Agreements Act (19 U.S.C. 3524)

11 and the notification and consultation require12 ments of section 5(a) of this Act, the President

13 may proclaim the modification of any duty, in14 cluding any staged rate reduction of any duty

15 resulting from the Uruguay Round Agreements,

16 if the United States has agreed to such modi17 fication or staged rate reduction in a negotia18 tion for the reciprocal elimination or harmoni19 zation of duties, within the same tariff cat20 egories, under the auspices of the WTO or as

21 part of an interim agreement leading to the for22 mation of a regional free-trade area.

23 (B) NOTICE REQUIRED.—The modification

24 or staged rate reduction authorized under sub25 paragraph (A) with respect to any negotiation
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1 initiated after the date of enactment of this Act

2 may be proclaimed only on articles in tariff cat3 egories with respect to which the President has

4 provided notice in accordance with section 5(a).

5 (7) TARIFF MODIFICATIONS UNDER URUGUAY

6 ROUND AGREEMENTS ACT.—Nothing in this sub7 section shall limit the authority provided to the

8 President under section 111(b) of the Uruguay

9 Round Agreements Act.

10 (b) AGREEMENTS REGARDING TARIFF AND NON11 TARIFF BARRIERS.—

12 (1) IN GENERAL.—

13 (A) DETERMINATION BY PRESIDENT.—

14 Whenever the President determines that—

15 (i) any duty or other import restric16 tion imposed by any foreign country or the

17 United States or any other barrier to, or

18 other distortion of, international trade—

19 (I) unduly burdens or restricts

20 the foreign trade of the United States

21 or adversely affects the United States

22 economy; or

23 (II) is likely to result in such a

24 burden, restriction, or effect; and
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1 (ii) the purposes and objectives of this

2 Act will be promoted thereby, the Presi3 dent may, before December 31, 2005 (or

4 before December 31, 2007, or December

5 31, 2009 (whichever is applicable), if the

6 authority provided under this Act is ex7 tended under subsection (c)) enter into a

8 trade agreement described in subparagraph

9 (B).

10 (B) TRADE AGREEMENT DESCRIBED.—A

11 trade agreement described in this subparagraph

12 means an agreement with a foreign country

13 that provides for—

14 (i) the reduction or elimination of

15 such duty, restriction, barrier, or other dis16 tortion; or

17 (ii) the prohibition of, or limitation on

18 the imposition of, such barrier or other dis19 tortion.

20 (2) CONDITIONS.—A trade agreement may be

21 entered into under this subsection only if the fol22 lowing conditions are met:

23 (A) Such agreement makes progress in

24 meeting the applicable objectives described in

25 section 3(b).
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1 (B) The President satisfies the conditions

2 set forth in section 5 with respect to such

3 agreement.

4 (C) Such agreement includes in its text the

5 following language: ‘‘No provision of this Agree6 ment, or any dispute resolution or enforcement

7 mechanism established hereunder, that inter8 feres (through any means) with, or amends, any

9 law or standard (or the application of such law

10 or standard) of the United States relating to

11 health, safety, labor, environment, or essential

12 security, shall have any effect, nor shall the

13 United States be bound by or otherwise recog14 nize the validity of such provision.’’.

15 (3) BILLS QUALIFYING FOR TRADE AGREEMENT

16 APPROVAL PROCEDURES.—

17 (A) IN GENERAL.—The provisions of sec18 tion 151 of the Trade Act of 1974 (in this Act

19 referred to as ‘‘trade agreement approval proce20 dures’’) apply to implementing bills submitted

21 with respect to trade agreements entered into

22 under this subsection, except that, for purposes

23 of applying section 151(b)(1)—

24 (i) such implementing bills shall con25 tain only—
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1 (I) provisions that approve a

2 trade agreement entered into under

3 this subsection and the statement of

4 administrative action (if any) pro5 posed to implement such trade agree6 ment;

7 (II) provisions necessary to im8 plement such trade agreement; and

9 (III) provisions necessary for

10 purposes of complying with section

11 252 of the Balanced Budget and

12 Emergency Deficit Control Act of

13 1985 in implementing the applicable

14 trade agreement;

15 (ii) the provisions of subparagraph

16 (B) relating to points of order in the Sen17 ate shall apply; and

18 (iii) such implementing bills shall not

19 contain any provision that changes the

20 health, safety, labor, environmental, or es21 sential security laws or standards of the

22 United States.

23 (B) POINT OF ORDER IN SENATE.—

24 (i) IN GENERAL.—
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1 (I) POINT OF ORDER AGAINST

2 IMPLEMENTING BILL.—When the

3 Senate is considering an implementing

4 bill, upon a point of order being made

5 by any Senator against any part of

6 the implementing bill that contains

7 material in violation of subparagraph

8 (A)(i) (II) or (III) or subparagraph

9 (A)(iii), and the point of order is sus10 tained by the Presiding Officer, the

11 part of the implementing bill against

12 which the point of order is sustained

13 shall be stricken from the bill.

14 (II) POINT OF ORDER AGAINST

15 UNDERLYING AGREEMENT.—When

16 the Senate is considering an imple17 menting bill, upon a point of order

18 being made by any Senator that a

19 trade agreement entered into under

20 this subsection does not satisfy the

21 conditions set forth in paragraph

22 (2)(C), and the point of order is sus23 tained by the Presiding Officer, trade

24 agreement approval procedures shall

25 not apply to the implementing bill.
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1 (ii) WAIVERS AND APPEALS.—

2 (I) WAIVERS.—Before the Pre3 siding Officer rules on a point of

4 order described in clause (i), any Sen5 ator may move to waive the point of

6 order and the motion to waive shall

7 not be subject to amendment. A point

8 of order described in clause (i) is

9 waived only by the affirmative vote of

10 at least three-fifths of the Members of

11 the Senate, duly chosen and sworn.

12 (II) APPEALS.—After the Pre13 siding Officer rules on a point of

14 order under this subparagraph, any

15 Senator may appeal the ruling of the

16 Presiding Officer on the point of

17 order as it applies to some or all of

18 the provisions on which the Presiding

19 Officer ruled. A ruling of the Pre20 siding Officer on a point of order de21 scribed in clause (i) is sustained un22 less at least three-fifths of the Mem23 bers of the Senate, duly chosen and

24 sworn, vote not to sustain the ruling.

25 (c) EXTENSION PROCEDURES.—
32

•S 1104 IS

1 (1) IN GENERAL.—Except as provided in sec2 tion 6(b)—

3 (A) subsections (a) and (b) shall apply

4 with respect to agreements entered into before

5 December 31, 2005; and

6 (B) subsections (a) and (b) shall be ex7 tended to apply with respect to agreements en8 tered into on or after December 31, 2005, and

9 before December 31, 2007, or December 31,

10 2009 (whichever is applicable), if (and only

11 if)—

12 (i) the President requests such exten13 sion under paragraph (2); and

14 (ii) Congress adopts an extension ap15 proval resolution under paragraph (5) be16 fore December 31, 2005 (or before Decem17 ber 31, 2007, in the case of a second ex18 tension request).

19 (2) REPORT TO CONGRESS BY THE PRESI20 DENT.—If the President is of the opinion that the

21 authority under subsections (a) and (b) should be

22 extended, the President shall submit to Congress,

23 not later than July 1, 2005 (or July 1, 2007, in the

24 case of a second extension request), a written report
33

•S 1104 IS

1 that contains a request for such extension, together

2 with—

3 (A) a description of all trade agreements

4 that have been negotiated under subsections (a)

5 and (b) and, where applicable, the anticipated

6 schedule for submitting such agreements to

7 Congress for approval;

8 (B) a description of the progress that has

9 been made in negotiations to achieve the pur10 poses and objectives set out in section 3 (a) and

11 (b) of this Act, and a statement that such

12 progress justifies the continuation of negotia13 tions; and

14 (C) a statement of the reasons why the ex15 tension is needed to complete the negotiations.

16 (3) REPORT TO CONGRESS BY THE ADVISORY

17 COMMITTEE.—The President shall promptly inform

18 the Advisory Committee for Trade Policy and Nego19 tiations established under section 135 of the Trade

20 Act of 1974 (19 U.S.C. 2155) of the President’s de21 cision to submit a report to Congress under para22 graph (2). The Advisory Committee shall submit to

23 Congress as soon as practicable, but not later than

24 August 1, 2005 (or August 1, 2007, in the case of
34

•S 1104 IS

1 a second extension request), a written report that

2 contains—

3 (A) its views regarding the progress that

4 has been made in negotiations to achieve the

5 purposes and objectives of this Act; and

6 (B) a statement of its views, and the rea7 sons therefor, regarding whether the extension

8 requested under paragraph (2) should be ap9 proved or disapproved.

10 (4) REPORTS MAY BE CLASSIFIED.—The re11 ports submitted to Congress under paragraphs (2)

12 and (3), or any portion of the reports, may be classi13 fied to the extent the President determines appro14 priate.

15 (5) EXTENSION APPROVAL RESOLUTIONS.—

16 (A) IN GENERAL.—For purposes of this

17 subsection, the term ‘‘extension approval resolu18 tion’’ means a joint resolution of the two

19 Houses of Congress, the matter after the resolv20 ing clause of which is as follows: ‘‘That the

21 Congress approves the request of the President

22 for an extension, under section 4(c) of the

23 Trade Promotion Act of 2001, of lllll

24 after lllll.’’, with the first blank space

25 being filled with one or both of the following
35

•S 1104 IS

1 phrases: ‘‘the tariff proclamation authority pro2 vided under section 4(a) of the Trade Pro3 motion Act of 2001’’ or ‘‘the trade agreement

4 approval procedures provided under section 4(b)

5 of the Trade Promotion Act of 2001’’ and the

6 second blank space being filled with December

7 31, 2005, in the case of the first extension re8 quest and December 31, 2007, in the case of

9 the second extension request.

10 (B) INTRODUCTION AND REFERRAL.—An

11 extension approval resolution—

12 (i) may be introduced in either House

13 of Congress by any member of such House;

14 (ii) shall be jointly referred, in the

15 House of Representatives, to the Com16 mittee on Ways and Means and the Com17 mittee on Rules; and

18 (iii) shall be referred, in the Senate,

19 to the Committee on Finance.

20 (C) FLOOR CONSIDERATION.—The provi21 sions of sections 152 (d) and (e) of the Trade

22 Act of 1974 (19 U.S.C. 2192 (d) and (e)) (re23 lating to the floor consideration of certain reso24 lutions in the House and Senate) apply to an

25 extension approval resolution.
36

•S 1104 IS

1 (D) FINAL DATE FOR CONSIDERATION.—It

2 is not in order for either House of Congress to

3 consider an extension approval resolution after

4 December 31, 2007.

5 SEC. 5. NOTICE AND CONSULTATIONS.

6 (a) NOTICE AND CONSULTATION BEFORE NEGOTIA7 TION.—With respect to any agreement subject to the pro8 visions of section 4 (a) or (b), the President shall—

9 (1) not later than 90 calendar days before initi10 ating negotiations, provide written notice to Con11 gress regarding—

12 (A) the President’s intent to initiate the

13 negotiations;

14 (B) the date the President intends to ini15 tiate such negotiations;

16 (C) the specific United States objectives

17 for the negotiations; and

18 (D) whether the President intends to seek

19 an agreement or changes to an existing agree20 ment;

21 (2) consult regarding the negotiations—

22 (A) before and promptly after submission

23 of the notice described in paragraph (1), with

24 the Committee on Finance of the Senate, the

25 Committee on Ways and Means of the House of
37

•S 1104 IS

1 Representatives, and such other committees of

2 the House and Senate as the President deems

3 appropriate; and

4 (B) with any other committee that re5 quests consultations in writing; and

6 (3) consult with the appropriate industry sector

7 advisory committees established under section 135 of

8 the Trade Act of 1974 before initiating negotiations.

9 (b) CONSULTATION WITH CONGRESS BEFORE

10 AGREEMENT ENTERED INTO.—

11 (1) CONSULTATION.—Before entering into any

12 trade agreement under section 4 (a) or (b), the

13 President shall consult with—

14 (A) the Committee on Ways and Means of

15 the House of Representatives and the Com16 mittee on Finance of the Senate; and

17 (B) each other committee of the House

18 and the Senate, and each joint committee of

19 Congress, which has jurisdiction over legislation

20 involving subject matters that would be affected

21 by the trade agreement.

22 (2) SCOPE.—The consultation described in

23 paragraph (1) shall include consultation with respect

24 to—

25 (A) the nature of the agreement;
38

•S 1104 IS

1 (B) how and to what extent the agreement

2 will achieve the applicable purposes and objec3 tives of this Act;

4 (C) where applicable, the implementation

5 of the agreement under section 6, including

6 whether the agreement includes subject matter

7 for which supplemental implementing legislation

8 may be required which is not subject to trade

9 agreement approval procedures; and

10 (D) any other agreement the President has

11 entered into or intends to enter into with the

12 country or countries in question.

13 (c) ADVISORY COMMITTEE REPORTS.—The report

14 required under section 135(e)(1) of the Trade Act of 1974

15 regarding any trade agreement entered into under section

16 4(b) of this Act shall be provided to the President, Con17 gress, and the United States Trade Representative not

18 later than 30 calendar days after the date on which the

19 President notifies Congress under section 6(a)(1)(A) of

20 the President’s intention to enter into the agreement.

21 (d) CONSULTATION BEFORE AGREEMENT INI22 TIALED.—In the course of negotiations conducted under

23 this Act, the United States Trade Representative shall

24 consult closely and on a timely basis (including imme25 diately before initialing an agreement) with, and keep fully
39

•S 1104 IS

1 apprised of the negotiations, the congressional advisers for

2 trade policy and negotiations appointed under section 161

3 of the Trade Act of 1974 (19 U.S.C. 2211), the Com4 mittee on Finance of the Senate, and the Committee on

5 Ways and Means of the House of Representatives.

6 SEC. 6. IMPLEMENTATION OF TRADE AGREEMENTS.

7 (a) IN GENERAL.—

8 (1) NOTIFICATION AND SUBMISSION.—Any

9 agreement entered into under section 4(b) shall

10 enter into force with respect to the United States if

11 (and only if)—

12 (A) the President, at least 90 calendar

13 days before the day on which the President en14 ters into the trade agreement, notifies Congress

15 of the President’s intention to enter into the

16 agreement, and promptly thereafter publishes

17 notice of such intention in the Federal Register;

18 (B) within 60 calendar days after entering

19 into the agreement, the President submits to

20 Congress a description of those changes to ex21 isting laws that the President considers would

22 be required in order to bring the United States

23 into compliance with the agreement;
40

•S 1104 IS

1 (C) after entering into the agreement, the

2 President submits a copy of the final legal text

3 of the agreement, together with—

4 (i) a draft of an implementing bill de5 scribed in section 4(b)(3);

6 (ii) a statement of any administrative

7 action proposed to implement the trade

8 agreement; and

9 (iii) the supporting information de10 scribed in paragraph (2); and

11 (D) the implementing bill is enacted into

12 law.

13 (2) SUPPORTING INFORMATION.—The sup14 porting information required under paragraph

15 (1)(C)(iii) consists of—

16 (A) an explanation as to how the imple17 menting bill and proposed administrative action

18 will change or affect existing law; and

19 (B) a statement—

20 (i) asserting that the agreement

21 makes progress in achieving the applicable

22 purposes and objectives of this Act; and

23 (ii) setting forth the reasons of the

24 President regarding—
41

•S 1104 IS

1 (I) how and to what extent the

2 agreement makes progress in achiev3 ing the applicable purposes and objec4 tives referred to in clause (i), and why

5 and to what extent the agreement

6 does not achieve other applicable pur7 poses and objectives;

8 (II) whether and how the agree9 ment changes provisions of an agree10 ment previously negotiated;

11 (III) how the agreement serves

12 the interests of United States com13 merce;

14 (IV) why the implementing bill

15 qualifies for trade agreement approval

16 procedures under section 4(b)(3); and

17 (V) any proposed administrative

18 action.

19 (3) RECIPROCAL BENEFITS.—To ensure that a

20 foreign country which receives benefits under a trade

21 agreement entered into under section 4 (a) or (b) is

22 subject to the obligations imposed by such agree23 ment, the President shall recommend to Congress in

24 the implementing bill and statement of administra25 tive action submitted with respect to such agreement
42

•S 1104 IS

1 that the benefits and obligations of such agreement

2 apply solely to the parties to such agreement, if such

3 application is consistent with the terms of such

4 agreement. The President may also recommend with

5 respect to any such agreement that the benefits and

6 obligations of such agreement not apply uniformly

7 to all parties to such agreement, if such application

8 is consistent with the terms of such agreement.

9 (b) LIMITATIONS ON TRADE AGREEMENT APPROVAL

10 PROCEDURES.—

11 (1) DISAPPROVAL OF THE NEGOTIATION.—The

12 trade agreement approval procedures shall not apply

13 to any implementing bill that contains a provision

14 approving any trade agreement that is entered into

15 under section 4(b) with any foreign country if the

16 Committee on Finance of the Senate and the Com17 mittee on Ways and Means of the House of Rep18 resentatives disapprove of the negotiation of the

19 agreement before the close of the 90-calendar day

20 period that begins on the date notice is provided

21 under section 5(a)(1) with respect to the negotiation

22 of such agreement.

23 (2) LACK OF NOTICE OR CONSULTATIONS.—

24 (A) IN GENERAL.—The trade agreement

25 approval procedures shall not apply to any im-
43

•S 1104 IS

1 plementing bill submitted with respect to a

2 trade agreement entered into under section 4(b)

3 if during the 60-day period beginning on the

4 date that 1 House of Congress agrees to a pro5 cedural disapproval resolution for lack of notice

6 or consultations with respect to that trade

7 agreement, the other House separately agrees

8 to a procedural disapproval resolution with re9 spect to that agreement.

10 (B) PROCEDURAL DISAPPROVAL RESOLU11 TION.—For purposes of this paragraph, the

12 term ‘‘procedural disapproval resolution’’ means

13 a resolution of either House of Congress, the

14 sole matter after the resolving clause of which

15 is as follows: ‘‘That the President has failed or

16 refused to notify or consult (as the case may

17 be) with Congress in accordance with sections 5

18 and 6 of the Trade Promotion Act of 2001 with

19 respect to lllll and, therefore, the trade

20 agreement approval procedures set forth in sec21 tion 4(b) of that Act shall not apply to any im22 plementing bill submitted with respect to that

23 trade agreement.’’, with the blank space being

24 filled with a description of the trade agreement

25 with respect to which the President is consid-
44

•S 1104 IS

1 ered to have failed or refused to notify or con2 sult.

3 (C) COMPUTATION OF CERTAIN PERIODS

4 OF TIME.—The 60-day period of time described

5 in subparagraph (A) shall be computed without

6 regard to—

7 (i) the days on which either House of

8 Congress is not in session because of an

9 adjournment of more than 3 days to a day

10 certain or an adjournment of Congress sine

11 die; and

12 (ii) any Saturday and Sunday, not ex13 cluded under clause (i), when either House

14 of Congress is not in session.

15 (3) PROCEDURES FOR CONSIDERING PROCE16 DURAL DISAPPROVAL RESOLUTION.—

17 (A) PROCEDURAL DISAPPROVAL RESOLU18 TION.—A procedural disapproval resolution—

19 (i) in the House of Representatives—

20 (I) shall be introduced by the

21 chairman or ranking minority member

22 of the Committee on Ways and Means

23 or the chairman or ranking minority

24 member of the Committee on Rules;
45

•S 1104 IS

1 (II) shall be jointly referred to

2 the Committee on Ways and Means

3 and the Committee on Rules; and

4 (III) may not be amended by ei5 ther Committee; and

6 (ii) in the Senate, shall be an original

7 resolution of the Committee on Finance.

8 (B) FLOOR CONSIDERATION.—The provi9 sions of section 152 (d) and (e) of the Trade

10 Act of 1974 (19 U.S.C. 2192 (d) and (e)) (re11 lating to the floor consideration of certain reso12 lutions in the House and Senate) apply to a

13 procedural disapproval resolution.

14 (C) COMMITTEE ACTION REQUIRED.—

15 (i) HOUSE OF REPRESENTATIVES.—It

16 is not in order for the House of Represent17 atives to consider any procedural dis18 approval resolution not reported by the

19 Committee on Ways and Means and the

20 Committee on Rules.

21 (ii) SENATE.—It is not in order for

22 the Senate to consider any procedural dis23 approval resolution not reported by the

24 Committee on Finance.
46

•S 1104 IS

1 (c) RULES OF HOUSE OF REPRESENTATIVES AND

2 SENATE.—Subsection (b) of this section and section 4 (b)

3 and (c) are enacted by Congress—

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

5 the House of Representatives and the Senate, re6 spectively, and as such are deemed a part of the

7 rules of each House, respectively, and such proce8 dures supersede other rules only to the extent that

9 they are inconsistent with such other rules; and

10 (2) with the full recognition of the constitu11 tional right of either House to change the rules (so

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

13 any time, in the same manner, and to the same ex14 tent as any other rule of that House.

15 SEC. 7. TREATMENT OF CERTAIN TRADE AGREEMENTS.

16 (a) IN GENERAL.—Notwithstanding section

17 4(a)(6)(B) and section 4(b)(2), the provisions of section

18 5(a) shall not apply with respect to any agreement that

19 results from—

20 (1) negotiations under the auspices of the WTO

21 regarding trade in information technology products;

22 (2) negotiations or work programs initiated

23 pursuant to a Uruguay Round Agreement, as de24 fined in section 2 of the Uruguay Round Agree25 ments Act;
47

•S 1104 IS

1 (3) negotiations with Chile, Singapore, Aus2 tralia, or New Zealand; or

3 (4) negotiations to achieve a free trade area of

4 the Americas,

5 that was commenced before the date of enactment of this

6 Act, and the applicability of trade agreement approval pro7 cedures with respect to such agreements shall be deter8 mined without regard to the requirements of section 5(a).

9 (b) PROCEDURAL DISAPPROVAL RESOLUTION NOT

10 IN ORDER.—A procedural disapproval resolution under

11 section 6(b) shall not be in order with respect to an agree12 ment described in subsection (a) of this section based on

13 a failure or refusal to comply with section 5(a).

14 SEC. 8. CONFORMING AMENDMENTS.

15 (a) IN GENERAL.—Title I of the Trade Act of 1974

16 (19 U.S.C. 2111 et seq.) is amended as follows:

17 (1) IMPLEMENTING BILL.—

18 (A) Section 151(b)(1) (19 U.S.C.

19 2191(b)(1)) is amended—

20 (i) by striking ‘‘section 1103(a)(1) of

21 the Omnibus Trade and Competitiveness

22 Act of 1988, or section 282 of the Uru23 guay Round Agreements Act’’ and insert24 ing ‘‘section 282 of the Uruguay Round
48

•S 1104 IS

1 Agreements Act, or section 6(a)(1) of the

2 Trade Promotion Act of 2001’’; and

3 (ii) by adding after subparagraph (C)

4 the following flush sentence:

5 For purposes of applying this paragraph to imple6 menting bills submitted with respect to trade agree7 ments entered into under section 4(b) of the Trade

8 Promotion Act of 2001, clauses (i), (ii), and (iii) of

9 section 4(b)(3)(A) of such Act shall be substituted

10 for subparagraphs (A), (B), and (C) of this para11 graph.’’.

12 (B) Section 151(c)(1) (19 U.S.C.

13 2191(c)(1)) is amended by striking ‘‘or section

14 282 of the Uruguay Round Agreements Act’’

15 and inserting ‘‘, section 282 of the Uruguay

16 Round Agreements Act, or section 6(a)(1) of

17 the Trade Promotion Act of 2001’’.

18 (2) ADVICE FROM INTERNATIONAL TRADE COM19 MISSION.—Section 131 (19 U.S.C. 2151) is

20 amended—

21 (A) in subsection (a)—

22 (i) in paragraph (1), by striking ‘‘sec23 tion 123 of this Act or section 1102 (a) or

24 (c) of the Omnibus Trade and Competitive25 ness Act of 1988,’’ and inserting ‘‘section
49

•S 1104 IS

1 123 of this Act or section 4 (a) or (b) of

2 the Trade Promotion Act of 2001,’’; and

3 (ii) in paragraph (2), by striking ‘‘sec4 tion 1102 (b) or (c) of the Omnibus Trade

5 and Competitiveness Act of 1988’’ and in6 serting ‘‘section 4(b) of the Trade Pro7 motion Act of 2001’’;

8 (B) in subsection (b), by striking ‘‘section

9 1102(a)(3)(A)’’ and inserting ‘‘section

10 4(a)(3)(A) of the Trade Promotion Act of

11 2001’’ before the end period; and

12 (C) in subsection (c), by striking ‘‘section

13 1102 of the Omnibus Trade and Competitive14 ness Act of 1988,’’ and inserting ‘‘section 4 of

15 the Trade Promotion Act of 2001,’’.

16 (3) HEARINGS AND ADVICE.—Sections 132,

17 133(a), and 134(a) (19 U.S.C. 2152, 2153(a), and

18 2154(a)) are each amended by striking ‘‘section

19 1102 of the Omnibus Trade and Competitiveness

20 Act of 1988,’’ each place it appears and inserting

21 ‘‘section 4 of the Trade Promotion Act of 2001,’’.

22 (4) PREREQUISITES FOR OFFERS.—Section

23 134(b) (19 U.S.C. 2154(b)) is amended by striking

24 ‘‘section 1102 of the Omnibus Trade and Competi-
50

•S 1104 IS

1 tiveness Act of 1988’’ and inserting ‘‘section 4 of the

2 Trade Promotion Act of 2001’’.

3 (5) ADVICE FROM PRIVATE AND PUBLIC SEC4 TORS.—Section 135 (19 U.S.C. 2155) is amended—

5 (A) in subsection (a)(1)(A), by striking

6 ‘‘section 1102 of the Omnibus Trade and Com7 petitiveness Act of 1988’’ and inserting ‘‘section

8 4 of the Trade Promotion Act of 2001’’;

9 (B) in subsection (e)(1)—

10 (i) by striking ‘‘section 1102 of the

11 Omnibus Trade and Competitiveness Act

12 of 1988’’ each place it appears and insert13 ing ‘‘section 4 of the Trade Promotion Act

14 of 2001’’; and

15 (ii) by striking ‘‘section 1103(a)(1)(A)

16 of such Act of 1988’’ and inserting ‘‘sec17 tion 6(a)(1)(A) of the Trade Promotion

18 Act of 2001’’; and

19 (C) in subsection (e)(2), by striking ‘‘the

20 applicable overall and principal negotiating ob21 jectives set forth in section 1101 of the Omni22 bus Trade and Competitiveness Act of 1988’’

23 and inserting ‘‘the purposes and objectives set

24 forth in section 3 (a) and (b) of the Trade Pro25 motion Act of 2001’’.
51

•S 1104 IS

1 (6) TRANSMISSION OF AGREEMENTS TO CON2 GRESS.—Section 162(a) (19 U.S.C. 2212(a)) is

3 amended by striking ‘‘or under section 1102 of the

4 Omnibus Trade and Competitiveness Act of 1988’’

5 and inserting ‘‘or under section 4 of the Trade Pro6 motion Act of 2001’’.

7 (b) APPLICATION OF CERTAIN PROVISIONS.—For

8 purposes of applying sections 125, 126, and 127 of the

9 Trade Act of 1974 (19 U.S.C. 2135, 2136(a), and

10 2137)—

11 (1) any trade agreement entered into under sec12 tion 4 shall be treated as an agreement entered into

13 under section 101 or 102, as appropriate, of the

14 Trade Act of 1974 (19 U.S.C. 2111 or 2112); and

15 (2) any proclamation or Executive order issued

16 pursuant to a trade agreement entered into under

17 section 4 shall be treated as a proclamation or Exec18 utive order issued pursuant to a trade agreement en19 tered into under section 102 of the Trade Act of

20 1974.

21 SEC. 9. DEFINITIONS.

22 In this Act:

23 (1) DISTORTION.—The term ‘‘distortion’’ in24 cludes, but is not limited to, a subsidy.
52

•S 1104 IS

1 (2) TRADE.—The term ‘‘trade’’ includes, but is

2 not limited to—

3 (A) trade in both goods and services; and

4 (B) foreign investment by United States

5 persons, especially if such investment has impli6 cations for trade in goods and services.

7 (3) URUGUAY ROUND AGREEMENTS.—The term

8 ‘‘Uruguay Round Agreements’’ has the meaning

9 given such term in section 2(7) of the Uruguay

10 Round Agreements Act (19 U.S.C. 3501(7)).

11 (4) WORLD TRADE ORGANIZATION.—The term

12 ‘‘World Trade Organization’’ means the organization

13 established pursuant to the WTO Agreement.

14 (5) WTO AGREEMENT.—The term ‘‘WTO

15 Agreement’’ means the Agreement Establishing the

16 World Trade Organization entered into on April 15,

17 1994.

18 (6) WTO AND WTO MEMBER.—The terms

19 ‘‘WTO’’ and ‘‘WTO member’’ have the meanings

20 given those terms in section 2 of the Uruguay

21 Round Agreements Act (19 U.S.C. 3501).

Æ