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[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H. Con. Res. 276 Introduced in House (IH)]

106th CONGRESS
  2d Session
H. CON. RES. 276

 Strongly urging the President to file a complaint at the World Trade 
Organization against oil-producing countries for violating trade rules 
   that prohibit quantitative limitations on the import or export of 
                 resources or products across borders.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                             March 13, 2000

Mr. DeFazio (for himself, Mr. Sanders, Ms. Slaughter, Mr. Hinchey, and 
  Mrs. Jones of Ohio) submitted the following concurrent resolution; 
         which was referred to the Committee on Ways and Means

_______________________________________________________________________

                         CONCURRENT RESOLUTION

 
 Strongly urging the President to file a complaint at the World Trade 
Organization against oil-producing countries for violating trade rules 
   that prohibit quantitative limitations on the import or export of 
                 resources or products across borders.

Whereas no free market exists in oil production because of collusion among oil-
        producing countries;
Whereas the Oil and Petroleum Exporting Countries (OPEC) and other oil-producing 
        countries agreed in March 1998 to a series of three coordinated cutbacks 
        in production, thus manipulating world oil markets resulting in de facto 
        price fixing;
Whereas as of March 2000, world oil production is 73,000,000 barrels a day, 
        while world oil consumption is 75,000,000 barrels to day, thereby 
        resulting in a shortfall of 2,000,000 barrels;
Whereas this shortfall has led to the highest price per barrel of oil in nearly 
        a decade and substantial increases in consumer prices for items such as 
        home heating oil and gasoline;
Whereas rising oil prices greatly harm consumers, farmers, small businesses, and 
        manufacturers, increase the likelihood of inflation, increase the cost 
        of conducting interstate and international commerce, and pose a strong 
        threat to continued economic growth;
Whereas the Secretary of Energy testified on March 2, 2000, before the Committee 
        on International Relations of the House of Representatives that ``The 
        volatility [in oil prices] we're enduring today makes clear that 
        artificial production quotas just don't work. Markets should set 
        prices.'';
Whereas article XI of the General Agreement on Tariffs and Trade (GATT 1994) 
        prohibits members of the World Trade Organization (WTO) from setting 
        quantitative restrictions on the import or export of resources or 
        products across their borders; specifically the language reads ``No 
        prohibitions or restrictions other than duties, taxes or other charges, 
        whether made effective through quotas, import or export licenses or 
        other measures, shall be instituted or maintained by any contracting 
        party on the importation of any product of the territory of any other 
        contracting party or on the exportation or sale for export of any 
        product destined for the territory of any other contracting party.'';
Whereas the precise meaning of this provision was spelled out in a WTO Panel 
        Report issued in 1998 entitled ``Japan--Trade in Semi-conductors'', 
        which noted, ``. . . this wording [in article XI] was comprehensive: it 
        applied to all measures instituted or maintained by a contracting party 
        prohibiting or restricting the importation, exportation or sale for 
        export of products other than measures that take the form of duties, 
        taxes, or other charges . . . This wording indicated clearly that any 
        measure instituted or maintained by a contracting party which restricted 
        the exportation or sale for export of products was covered by this 
        provision, irrespective of the legal status of the measure.'';
Whereas oil production restrictions clearly qualify as a ``quantitative 
        restriction'' based on the original WTO rules and the 1998 WTO panel 
        report, which certify that only ``duties, taxes or other charges'' are 
        allowable, not pacts among countries to limit production of a product 
        for export;
Whereas article XX of GATT 1994, which sets out a series of exceptions to 
        article XI, notes that none of the exceptions are valid if they are 
        ``applied in a manner which would constitute . . . a disguised 
        restriction on international trade'', a phrase which describes OPEC's 
        production restrictions;
Whereas of the 11 OPEC countries, 6 are members of the WTO (Kuwait, Indonesia, 
        Nigeria, Qatar, Venezuela, and United Arab Emirates); 2 have observer 
        status and have applied to join the WTO (Saudi Arabia and Algeria); and 
        only 3 have no relationship with the WTO (Libya, Iran, and Iraq);
Whereas of the remaining oil-producing nations, Mexico and Norway are members of 
        the WTO, and Russia and Oman have applied for membership; and
Whereas given the substantial WTO membership and pending membership of oil-
        producing countries, filing a complaint would likely have an immediate 
        impact on the current and future behavior of these countries: Now, 
        therefore, be it
    Resolved by the House of Representatives (the Senate concurring), 
That the Congress strongly urges the President of the United States to 
file a complaint in the World Trade Organization against oil-producing 
nations for violating their obligations under the rules of that 
organization.
                                 <all>
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