I 

116TH CONGRESS 

1ST SESSION H. R. 764 

To authorize the President to take certain actions relating to reciprocal 

trade, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

JANUARY 24, 2019 

Mr. DUFFY (for himself, Mr. ADERHOLT, Mr. COLLINS of New York, Mr. 

COOK, Mr. DIAZ-BALART, Mr. GAETZ, Mr. GIBBS, Mr. KELLY of Pennsylvania, Mr. LONG, Mr. MCKINLEY, Mrs. MILLER, Mr. SENSENBRENNER, Mr. STAUBER, Mr. HUNTER, Mr. CRAWFORD, Mr. KING of 

New York, Mr. BURGESS, Mr. PALAZZO, and Mr. ROUZER) introduced 

the following bill; which was referred to the Committee on Ways and 

Means, and in addition to the Committee on Rules, for a period to be 

subsequently determined by the Speaker, in each case for consideration 

of such provisions as fall within the jurisdiction of the committee concerned 

A BILL 

To authorize the President to take certain actions relating 

to reciprocal trade, and for other purposes. 

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 ‘‘United States Recip5 rocal Trade Act’’. 


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1 SEC. 2. FINDINGS. 

2 Congress finds the following: 

3 (1) The United States maintains an open mar4 ket for goods, with relatively low tariffs, and has 

5 long encouraged trading partners, both bilaterally 

6 and in multilateral fora, to liberalize their markets. 

7 (2) The United States is the world’s largest im8 porter of goods. 

9 (3) Trading partners of the United States in 

10 many instances impose significantly higher tariffs on 

11 United States goods than the United States imposes 

12 on the same or similar goods imported from those 

13 same countries. 

14 (4) United States trading partners in many in15 stances impose significant nontariff barriers that 

16 greatly undermine the value of negotiated tariff con17 cessions. 

18 (5) The lack of reciprocity in tariff levels and 

19 disproportionate use of nontariff barriers by United 

20 States trading partners facilitates foreign imports, 

21 discourages United States exports, and puts United 

22 States producers, farmers, and workers at a com23 petitive disadvantage. 

24 (6) The lack of reciprocity in tariff levels and 

25 nontariff barriers contributes to the large and grow26 ing United States trade deficit in goods, which is a 


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1 drag on economic growth and undermines economic 

2 prosperity. 

3 (7) To date a number of United States trading 

4 partners have been unwilling, including in multilat5 eral negotiations, to reduce tariffs and eliminate 

6 nontariff barriers applied to United States exports. 

7 (8) The United States should seek action by 

8 United States trading partners to lower tariffs and 

9 eliminate nontariff barriers, to promote efficiency in 

10 those markets and enhance opportunities for United 

11 States producers, farmers, and workers. 

12 (9) The President should have a wide array of 

13 tools to open the markets of United States trading 

14 partners and encourage participation in negotiations 

15 to liberalize trade in goods on a fair and reciprocal 

16 basis, including the authority to adjust tariff rates 

17 to reciprocal levels. 

18 SEC. 3. AUTHORITY TO TAKE CERTAIN ACTIONS RELATING 

19 TO RECIPROCAL TRADE. 

20 (a) IN GENERAL.—If the President determines 

21 that— 

22 (1) the rate of duty imposed by a foreign coun23 try with respect to a particular good, when imported 

24 from the United States, is significantly higher than 


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1 the rate of duty imposed by the United States on 

2 that good, when imported from that country, or 

3 (2) the nontariff barriers applied by a foreign 

4 country with respect to a particular good, when im5 ported from the United States, impose significantly 

6 higher burdens, alone or in combination with any 

7 tariffs imposed by that country on that good, than 

8 the burdens of the nontariff barriers applied by the 

9 United States with respect to that good, alone or in 

10 combination with any tariffs imposed by the United 

11 States on that good, when imported from that coun12 try, 

13 the President may take one or more of the actions author14 ized under subsection (b). 

15 (b) ACTIONS AUTHORIZED.—The actions authorized 

16 under this subsection are the following: 

17 (1) To negotiate and seek to enter into an 

18 agreement with the foreign country that commits the 

19 country to reduce the rate of duty or reduce or 

20 eliminate nontariff barriers on the good that is the 

21 subject of the determination under subsection (a). 

22 (2) To impose a rate of duty on imports of the 

23 good that is equal to— 

24 (A) the rate of duty imposed by the foreign 

25 country with respect to the good, in the case of 


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1 a determination described in subsection (a)(1); 

2 or 

3 (B) the effective rate of duty of the non4 tariff barriers applied by the foreign country 

5 with respect to the good, alone or in combina6 tion with any tariffs imposed by that country 

7 on that good, in the case of a determination de8 scribed in subsection (a)(2). 

9 (c) FACTORS.—In taking an action authorized under 

10 subsection (b), the President shall consider the following 

11 factors: 

12 (1) The tariff classification of the good by the 

13 United States and the tariff classification of the 

14 good by the foreign country. 

15 (2) The rate of duty applied by the United 

16 States with respect to the good and the rate of duty 

17 applied by the foreign country with respect to the 

18 good. 

19 (3) The physical characteristics of the good. 

20 (4) The end uses and existence of a competitive 

21 relationship between the good— 

22 (A) as exported from the United States to 

23 the foreign country; and 

24 (B) as imported from the country to the 

25 United States. 


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1 (5) The level of exports of the good by the 

2 country to the United States and to other countries. 

3 (6) In the case of a determination described in 

4 subsection (a)(1), the extent to which the rate of 

5 duty applied by the foreign country with respect to 

6 the good is impeding or distorting trade. 

7 (7) In the case of a determination described in 

8 subsection (a)(2)— 

9 (A) the extent of the nontariff barriers ap10 plied by the foreign country with respect to the 

11 good and the extent of the nontariff barriers 

12 applied by the United States with respect to the 

13 good; 

14 (B) the extent to which the nontariff bar15 riers applied by the country with respect to the 

16 good, alone or in combination with any tariffs 

17 imposed by that country on that good, are im18 peding or distorting trade; 

19 (C) the identified purpose of the nontariff 

20 barriers applied by the country with respect to 

21 the good, if any, and the extent to which the 

22 nontariff barriers are more restrictive than nec23 essary to meet that purpose; and 


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1 (D) the degree of transparency of the proc2 ess by which the country adopted the nontariff 

3 barriers. 

4 (8) Other factors, as the President determines 

5 appropriate. 

6 (d) ROLE OF USTR.—The United States Trade Rep7 resentative, in consultation with the Secretary of Treas8 ury, the Secretary of Commerce, and the heads of other 

9 relevant Federal agencies, shall advise the President in de10 termining the effective rate of duty imposed by the non11 tariff barriers applied by a foreign country with respect 

12 to a good, alone or in combination with any tariffs imposed 

13 by that country on that good, in the case of a determina14 tion described in subsection (a)(2). 

15 (e) LOWER RATE OF DUTY.—The President may im16 pose a rate of duty on imports of a good from a foreign 

17 country that is lower than the rate of duty described in 

18 subsection (b)(2)(A) or lower than the effective rate of 

19 duty described in subsection (b)(2)(B), as the case may 

20 be, if the President determines that application of such 

21 lower rate of duty is necessary and appropriate. 

22 (f) HIGHER RATE OF DUTY.—If the President im23 poses a rate of duty on imports of a good from a foreign 

24 country under subsection (b)(2), and the country further 

25 increases its rate of duty on imports of the good from the 


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1 United States, the President may further increase the rate 

2 of duty on imports of the good from the country to a rate 

3 that is equal to the rate of duty applied by that country. 

4 (g) TERMINATION.—The President shall terminate 

5 the imposition of any increase in the rate of duty on im6 ports of a good from a foreign country under subsection 

7 (b)(2) effective on the date on which the President deter8 mines that— 

9 (1) the foreign country is no longer— 

10 (A) imposing a rate of duty with respect to 

11 the good, as described in subsection (a)(1); or 

12 (B) applying nontariff barriers with re13 spect to the good, as described in subsection 

14 (a)(2); or 

15 (2) continued imposition of the increased rate 

16 of duty on imports of the good from the foreign 

17 country is not in the economic or public interest of 

18 the United States. 

19 SEC. 4. NOTICE AND CONSULTATION. 

20 (a) IN GENERAL.—Before taking any action author21 ized under section 3(b)(1), the President shall provide no22 tice to and consult with the Committee on Ways and 

23 Means of the House of Representatives and the Committee 

24 on Finance of the Senate regarding the proposed action. 


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1 (b) NOTICE.—Before taking any action authorized 

2 under section 3(b)(2), the President shall— 

3 (1) not less than 45 days before the date on 

4 which imposition of an increased rate of duty on im5 ports of a good from a foreign country is to take ef6 fect, publish notice in the Federal Register of, and 

7 allow for public comment on, the proposed imposi8 tion and level of such increased rate of duty; and 

9 (2) seek advice regarding the proposed action 

10 from the advisory committees established under sec11 tion 135 of the Trade Act of 1974 (19 U.S.C. 

12 2155). 

13 (c) ADDITIONAL NOTICE.—The President shall 

14 promptly publish in the Federal Register notice of any ac15 tion taken pursuant to section 3(f) or 3(g). 

16 SEC. 5. CONGRESSIONAL DISAPPROVAL OF PRESIDENTIAL 

17 IMPOSITION OF RATES OF DUTY ON IMPORTS 

18 OF GOODS FROM FOREIGN COUNTRIES 

19 UNDER SECTION 3(b)(2); DISAPPROVAL RESO20 LUTION. 

21 (a) IN GENERAL.—An action taken by the President 

22 under section 3(b)(2) to impose a rate of duty on imports 

23 of a good from a foreign country shall cease to have force 

24 and effect upon the enactment of a disapproval resolution, 

25 provided for in subsection (b), relating to that action. 


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1 (b) CONGRESSIONAL RULEMAKING POWER; DIS2 APPROVAL RESOLUTION.— 

3 (1) IN GENERAL.—This section is enacted by 

4 the Congress— 

5 (A) as an exercise of the rulemaking power 

6 of the House of Representatives and the Sen7 ate, respectively, and as such is deemed a part 

8 of the rules of each House, respectively, but ap9 plicable only with respect to the procedures to 

10 be followed in that House in the case of dis11 approval resolutions and such procedures super12 sede other rules only to the extent that they are 

13 inconsistent therewith; and 

14 (B) with the full recognition of the con15 stitutional right of either House to change the 

16 rules (so far as relating to the procedure of that 

17 House) at any time, in the same manner, and 

18 to the same extent as any other rule of that 

19 House. 

20 (2) DISAPPROVAL RESOLUTION.—For purposes 

21 of this section, the term ‘‘disapproval resolution’’ 

22 means only a joint resolution of either House of 

23 Congress the matter after the resolving clause of 

24 which is as follows: ‘‘That the Congress disapproves 

25 the action taken under section 3(b)(2) of the United 


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1 States Reciprocal Trade Act with respect to the im2 position of a rate of duty on imports of ll from 

3 ll under such section 3(b)(2).’’, the first blank 

4 space being filled with a description of the good with 

5 respect to which the duty is imposed under section 

6 3(b)(2) and the second blank being filled with the 

7 name of the foreign country from which the good is 

8 imported into the United States. 

9 (3) CONSIDERATION.— 

10 (A) INTRODUCTION.—All disapproval reso11 lutions introduced in the House of Representa12 tives shall be referred to the Committee on 

13 Ways and Means and all disapproval resolutions 

14 introduced in the Senate shall be referred to the 

15 Committee on Finance. 

16 (B) AMENDMENTS PROHIBITED; MOTIONS

17 TO SUSPEND APPLICATION OF THIS SUBPARA18 GRAPH PROHIBITED.—No amendment to a dis19 approval resolution shall be in order in either 

20 the House of Representatives or the Senate, 

21 and no motion to suspend the application of 

22 this subparagraph shall be in order in either 

23 House nor shall it be in order in either House 

24 for the Presiding Officer to entertain a request 


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1 to suspend the application of this subparagraph 

2 by unanimous consent. 

3 (C) MAJORITY REQUIRED FOR ADOP4 TION.—A disapproval resolution considered 

5 under this subsection shall require an affirma6 tive vote of two-thirds of the Members, duly 

7 chosen and sworn, for adoption. 

8 SEC. 6. REPORT. 

9 Before entering into an agreement with a foreign 

10 country under section 3(b)(1), the United States Trade 

11 Representative shall submit to the appropriate congres12 sional committees and leadership a report that describes— 

13 (1) the implementation of the agreement, in14 cluding how it is consistent with and does not mate15 rially differ from or otherwise affect Federal or 

16 State laws or regulations; 

17 (2) the impact on the competitiveness of United 

18 States businesses; and 

19 (3) the impact on United States consumers. 


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1 SEC. 7. SUNSET OF PRESIDENTIAL IMPOSITION OF RATES 

2 OF DUTY ON IMPORTS OF GOODS FROM FOR3 EIGN COUNTRIES UNDER SECTION 3(b)(2) BY 

4 DISAPPROVAL RESOLUTION. 

5 (a) IN GENERAL.—The authority of the President to 

6 take an action under section 3(b)(2) to impose a rate of 

7 duty on imports of a good from a foreign country— 

8 (1) shall be effective for the period ending on 

9 the date that is three years after the date of the en10 actment of this Act; and 

11 (2) shall be extended for an additional period of 

12 three years if (and only if)— 

13 (A) the President requests such extension 

14 under subsection (b); and 

15 (B) a disapproval resolution is not enacted 

16 into law as provided for under subsection (c). 

17 (b) REPORT TO CONGRESS.—If the President is of 

18 the opinion that the authority of the President to take an 

19 action under section 3(b)(2) to impose a rate of duty on 

20 imports of a good from a foreign country should be ex21 tended for the additional period described in subsection 

22 (a)(2), the President shall submit to Congress, not later 

23 than the date that is three months before the end of the 

24 period described in subsection (a)(1), a written report that 

25 contains a request for such extension, together with a de26 scription of all actions taken under section 3(b)(2) to date. 


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1 (c) DISAPPROVAL RESOLUTION.— 

2 (1) CONGRESSIONAL RULEMAKING POWER.— 

3 This section is enacted by the Congress— 

4 (A) as an exercise of the rulemaking power 

5 of the House of Representatives and the Sen6 ate, respectively, and as such is deemed a part 

7 of the rules of each House, respectively, but ap8 plicable only with respect to the procedures to 

9 be followed in that House in the case of dis10 approval resolutions and such procedures super11 sede other rules only to the extent that they are 

12 inconsistent therewith; and 

13 (B) with the full recognition of the con14 stitutional right of either House to change the 

15 rules (so far as relating to the procedure of that 

16 House) at any time, in the same manner, and 

17 to the same extent as any other rule of that 

18 House. 

19 (2) DISAPPROVAL RESOLUTION.—For purposes 

20 of subsection (a), the term ‘‘disapproval resolution’’ 

21 means only a joint resolution of either House of 

22 Congress the matter after the resolving clause of 

23 which is as follows: ‘‘That the Congress disapproves 

24 the request of the President for the extension, under 

25 section 7(a)(2)(A) of the United States Reciprocal 


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1 Trade Act, of the authority of the President to take 

2 an action under section 3(b)(2) of such Act to im3 pose a rate of duty on imports of a good from a for4 eign country after the period ending on the date that 

5 is three years after the date of the enactment of 

6 such Act.’’. 

7 (3) INTRODUCTION; REFERRAL.—A disapproval 

8 resolution— 

9 (A) may be introduced in either House of 

10 Congress by any member of such House; and 

11 (B) shall be referred, in the House of Rep12 resentatives, to the Committee on Ways and 

13 Means and, in addition, to the Committee on 

14 Rules. 

15 (4) FLOOR CONSIDERATION.—The provisions of 

16 subsections (d) and (e) of section 152 of the Trade 

17 Act of 1974 (19 U.S.C. 2192) (relating to the floor 

18 consideration of certain resolutions in the House and 

19 Senate) apply to a disapproval resolution. 

20 (5) LIMITATIONS ON CONSIDERATION.—It is 

21 not in order for— 

22 (A) the House of Representatives to con23 sider any disapproval resolution not reported by 

24 the Committee on Ways and Means and, in ad25 dition, by the Committee on Rules; 


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1 (B) the Senate to consider any disapproval 

2 resolution not reported by the Committee on Fi3 nance; or 

4 (C) either House of Congress to consider a 

5 disapproval resolution after the date that is 

6 three years after the date of the enactment of 

7 this Act. 

8 (d) RULES OF CONSTRUCTION.— 

9 (1) IN GENERAL.—An action authorized under 

10 section 3(b)(2) to impose a rate of duty on imports 

11 of a good from a foreign country that is taken before 

12 the end of the period described in subsection (a)(1) 

13 or the end of the period described in subsection 

14 (a)(2) shall remain in effect after the end of such re15 spective period. 

16 (2) ADDITIONAL AUTHORITIES.—The President 

17 may exercise the authorities of subsections (e), (f), 

18 and (g) of section 3 with respect to an action de19 scribed in paragraph (1) after the end of the period 

20 described in such paragraph that is applicable to 

21 such action. 

22 SEC. 8. DEFINITIONS. 

23 In this Act: 


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1 (1) APPROPRIATE CONGRESSIONAL COMMIT2 TEES AND LEADERSHIP.—The term ‘‘appropriate 

3 congressional committees and leadership’’ means— 

4 (A) the Committee on Ways and Means of 

5 the House of Representatives and the Com6 mittee on Finance of the Senate; and 

7 (B) the Speaker of the House of Rep8 resentatives, the minority leader of the House 

9 of Representatives, the majority leader of the 

10 Senate, and the minority leader of the Senate. 

11 (2) NONTARIFF BARRIER.—The term ‘‘nontariff 

12 barrier’’ includes any government-imposed measure 

13 or policy, other than a customs duty, that restricts, 

14 prevents, or impedes international trade in goods, in15 cluding import policies, sanitary and phytosanitary 

16 measures, technical barriers to trade, government 

17 procurement, export subsidies, lack of intellectual 

18 property protection, digital trade barriers, and gov19 ernment-tolerated anticompetitive conduct of state20 owned or private firms. 

21 (3) RATE OF DUTY.—The term ‘‘rate of duty’’ 

22 means the rate of customs duty applied on imports 

23 of a good, but does not include an antidumping or 


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1 countervailing duty or a duty applied under a pref2 erential tariff arrangement. 

Æ 


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