II 

113TH CONGRESS 

1ST SESSION S. 1801 

To amend the Tariff Act of 1930 to include in the calculation of normal 

value the cost of paying adequate wages and maintaining sustainable 

production methods, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

DECEMBER 11, 2013 

Mr. MERKLEY (for himself and Ms. BALDWIN) introduced the following bill; 

which was read twice and referred to the Committee on Finance 

A BILL 

To amend the Tariff Act of 1930 to include in the calculation 

of normal value the cost of paying adequate wages and 

maintaining sustainable production methods, 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 ‘‘Level the Playing Field 

5 in Global Trade Act of 2013’’. 

6 SEC. 2. FINDINGS; SENSE OF CONGRESS. 

7 (a) FINDINGS.—Congress makes the following find8 ings: 


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1 (1) Working families in the United States and 

2 around the world have not enjoyed many of the ben3 efits of increased global trade. 

4 (2) While the global economy grew at an aver5 age rate of 3.3 percent per year between 1995 and 

6 2007, annual wage growth remained at less than 3 

7 percent. 

8 (3) Between 1989 and 2010, hourly produc9 tivity in the United States grew more than 3 times 

10 as fast as wages, and nearly 4,000,000 manufac11 turing jobs disappeared in the United States be12 tween 1998 and 2013. 

13 (4) The lowest 20 percent of wage earners in 

14 the United States have seen average hourly wages 

15 decline by 3.9 percent, and the next lowest 20 per16 cent saw their earnings fall by 4.3 percent, while 

17 earnings for those in the top 20 percent increased by 

18 nearly 30 percent. 

19 (5) In 2010, there were approximately 

20 942,000,000 working poor living with their families 

21 on less than $2.00 per person per day. 

22 (6) Global biodiversity health declined 28 per23 cent from 1970 to 2008. 


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1 (7) The World Health Organization attributes 

2 more than 500,000 premature deaths annually to 

3 urban air pollution in Asia alone. 

4 (8) An estimated 160,000,000 people suffer 

5 from work-related diseases, and there are an esti6 mated 270,000,000 fatal and non-fatal work-related 

7 accidents each year. 

8 (b) SENSE OF CONGRESS.—It is the sense of Con9 gress that— 

10 (1) the antidumping and countervailing duty 

11 laws of the United States under title VII of the Tar12 iff Act of 1930 (19 U.S.C. 1671 et seq.) have pro13 vided targeted, effective relief against unfair trade 

14 practices and must be protected and enhanced; and 

15 (2) the failure to include within antidumping 

16 duty calculations the real costs of inadequate wages, 

17 insufficient workplace safety conditions, and insuffi18 cient environmental controls— 

19 (A) has a substantial negative effect on 

20 United States manufacturing and the United 

21 States economy; and 

22 (B) fails to support efforts to improve con23 ditions for working families and the environ24 ment in the United States and around the 

25 world. 


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1 SEC. 3. PURPOSES. 

2 The purposes of this Act are— 

3 (1) to ensure that goods imported into the 

4 United States fully reflect the real costs of paying 

5 an adequate living wage, upholding workplace safety 

6 standards, and maintaining basic environmental pro7 tections; and 

8 (2) to provide a streamlined method for entities 

9 that meet those standards to satisfy the require10 ments of the amendments made by this Act. 

11 SEC. 4. ADJUSTMENT OF NORMAL VALUE TO INCLUDE THE 

12 COST OF PAYING ADEQUATE WAGES AND 

13 MAINTAINING SUSTAINABLE PRODUCTION 

14 METHODS. 

15 (a) IN GENERAL.—Section 773(a) of the Tariff Act 

16 of 1930 (19 U.S.C. 1677b(a)) is amended— 

17 (1) by redesignating paragraph (8) as para18 graph (9); and 

19 (2) by inserting after paragraph (7) the fol20 lowing: 

21 ‘‘(8) ADJUSTMENTS FOR COSTS OF PROVIDING

22 ADEQUATE WAGES AND USING SUSTAINABLE PRO23 DUCTION METHODS.— 

24 ‘‘(A) INCREASE.—Except as otherwise pro25 vided in this paragraph, the price described in 


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1 paragraph (1)(B) shall also be increased by the 

2 difference, if any, between— 

3 ‘‘(i) the actual cost of producing the 

4 subject merchandise; and 

5 ‘‘(ii) the estimated cost of producing 

6 the subject merchandise if the producer 

7 paid its employees adequate wages and 

8 maintained sustainable production meth9 ods. 

10 ‘‘(B) CREDITS FOR COMPLIANCE.—At the 

11 request of an exporter or producer, the admin12 istering authority shall reduce the amount of 

13 the increase under subparagraph (A) with re14 spect to subject merchandise of that exporter or 

15 producer by an amount the administering au16 thority determines reflects the extent to which 

17 the subject merchandise was produced under 

18 conditions under which all employees receive 

19 adequate wages and sustainable production 

20 methods are maintained. The amount by which 

21 the increase under subparagraph (A) to the 

22 price under paragraph (1)(B) is reduced under 

23 this subparagraph shall be referred to as a 

24 ‘credit’. 

25 ‘‘(C) PRECERTIFICATION.— 


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1 ‘‘(i) EXPORTER- OR PRODUCER-SPE2 CIFIC PRECERTIFICATION.— 

3 ‘‘(I) REQUESTS.—An exporter or 

4 producer seeking to import merchan5 dise into the United States may re6 quest the administering authority to 

7 issue a precertification that merchan8 dise of the exporter or producer im9 ported into the United States from a 

10 specific country is eligible for credits 

11 under subparagraph (B) before an in12 vestigation is initiated under subtitle 

13 B with respect to the merchandise. 

14 ‘‘(II) STANDARD FOR

15 PRECERTIFICATION.—The admin16 istering authority shall issue to an ex17 porter or producer that requests a 

18 precertification under subclause (I) a 

19 precertification that covers all mer20 chandise imported into the United 

21 States by the exporter or producer 

22 from a specific country if the exporter 

23 or producer demonstrates to the satis24 faction of the administering authority 

25 that all such merchandise, including 


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1 significant components or ingredients 

2 of the merchandise, was or will be 

3 produced under conditions under 

4 which all employees receive adequate 

5 wages and sustainable production 

6 methods are maintained. 

7 ‘‘(III) EFFECTIVE PERIOD.—A 

8 precertification issued under this 

9 clause shall remain in effect for such 

10 period as the administrating authority 

11 determines appropriate, but not longer 

12 than 5 years. 

13 ‘‘(ii) COUNTRY-WIDE

14 PRECERTIFICATION.—The administering 

15 authority may issue a precertification for 

16 all merchandise imported from a country if 

17 the government of that country maintains 

18 and enforces laws requiring all producers 

19 of such merchandise in that country to pay 

20 its employees adequate wages and to main21 tain sustainable production methods. 

22 ‘‘(iii) SAFE HARBOR.— 

23 ‘‘(I) IN GENERAL.—If the admin24 istering authority has issued a 

25 precertification under clause (i) or 


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1 (ii), merchandise to which the 

2 precertification applies shall not be 

3 subject to an antidumping duty solely 

4 because a petition filed under section 

5 732(b)(1) with respect to the mer6 chandise alleges that the merchandise 

7 was not produced under conditions 

8 under which all employees receive ade9 quate wages and sustainable produc10 tion methods are maintained. 

11 ‘‘(II) CHALLENGING

12 PRECERTIFICATION.—An interested 

13 party described in subparagraph (C), 

14 (D), (E), (F), or (G) of section 

15 771(9) that files a petition under sec16 tion 732(b)(1) with respect to the 

17 merchandise covered by a 

18 precertification issued under clause (i) 

19 for a producer or exporter or under 

20 clause (ii) for a country bears the bur21 den of proving that the merchandise 

22 was not produced under conditions 

23 under which all employees receive ade24 quate wages and sustainable produc25 tion methods are maintained. 


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1 ‘‘(iv) DEMONSTRATION OF INJURY.— 

2 ‘‘(I) PRESUMPTION.—Except as 

3 provided in subclause (II), an inter4 ested party described in subparagraph 

5 (C), (D), (E), (F), or (G) of section 

6 771(9) that files a petition under sec7 tion 732(b)(1) with respect to mer8 chandise that relies on calculations of 

9 normal value made under this para10 graph shall be presumed to dem11 onstrate that the party is materially 

12 injured or threatened with material 

13 injury by reason of imports of the 

14 merchandise. 

15 ‘‘(II) EXCEPTIONS.—An inter16 ested party described in subparagraph 

17 (C), (D), (E), (F), or (G) of section 

18 771(9) that files a petition under sec19 tion 732(b)(1) with respect to mer20 chandise that relies on calculations of 

21 normal value made under this para22 graph shall not be presumed to dem23 onstrate that the party is materially 

24 injured or threatened with material 


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1 injury by reason of imports of the 

2 merchandise if— 

3 ‘‘(aa) the country from 

4 which the merchandise is ex5 ported is covered by a 

6 precertification issued under 

7 clause (ii); or 

8 ‘‘(bb) the estimated cost of 

9 producing the merchandise under 

10 subparagraph (A)(ii) is equal to 

11 or greater than the cost of pro12 ducing the merchandise in the 

13 country in which the interested 

14 party is located. 

15 ‘‘(v) USE OF THIRD-PARTY STAND16 ARDS.— 

17 ‘‘(I) IN GENERAL.—The admin18 istering authority, the Secretary of 

19 Labor, and the Administrator of the 

20 Environmental Protection Agency may 

21 jointly establish procedures pursuant 

22 to which obtaining certification from 

23 an organization described in subclause 

24 (II) may demonstrate the eligibility of 

25 an exporter or producer for a 


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1 precertification under clause (i) or the 

2 eligibility of a country for a 

3 precertification under clause (ii). 

4 ‘‘(II) ORGANIZATION DE5 SCRIBED.—An organization described 

6 in this subclause is an independent 

7 third-party organization that sets 

8 standards with respect to adequate 

9 wages and sustainable production 

10 methods. 

11 ‘‘(D) GUIDANCE ON COMPLIANCE.—Not 

12 later than one year after the date of the enact13 ment of the Level the Playing Field in Global 

14 Trade Act of 2013, the administering authority 

15 shall publish in the Federal Register guidance 

16 with respect to how persons producing mer17 chandise for exportation to the United States or 

18 seeking to import such merchandise into the 

19 United States may obtain credits and 

20 precertifications under subparagraphs (B) and 

21 (C). 

22 ‘‘(E) DEFINITIONS.—In this paragraph: 

23 ‘‘(i) ADEQUATE WAGE.— 

24 ‘‘(I) IN GENERAL.—The term 

25 ‘adequate wage’— 


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1 ‘‘(aa) means compensation 

2 for a regular work week that is 

3 sufficient to meet the basic needs 

4 of the employee and to provide 

5 the employee with some discre6 tionary income; and 

7 ‘‘(bb) includes— 

8 ‘‘(AA) at a minimum, 

9 the payment of the higher of 

10 the minimum wage or the 

11 appropriate prevailing wage, 

12 compliance with all legal re13 quirements relating to wages 

14 (including freedom of asso15 ciation relating to the bar16 gaining relating to wages 

17 and related matters), and 

18 the provision of such bene19 fits as are required by law 

20 or contract; and 

21 ‘‘(BB) such other ele22 ments as the administering 

23 authority considers appro24 priate. 


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1 ‘‘(II) GUIDANCE ON INTERPRE2 TATION.— 

3 ‘‘(aa) IN GENERAL.—Not 

4 later than one year after the date 

5 of the enactment of the Level the 

6 Playing Field in Global Trade 

7 Act of 2013, the administering 

8 authority shall publish in the 

9 Federal Register guidance, devel10 oped jointly with the Secretary of 

11 Labor, with respect to the inter12 pretation of ‘adequate wage’. 

13 ‘‘(bb) USE OF THIRD-PARTY

14 STANDARDS.—In developing 

15 guidance under item (aa), the ad16 ministering authority and the 

17 Secretary may consider inde18 pendent third-party standards, 

19 including, as appropriate, stand20 ards on an industry-by-industry 

21 or country-by-country basis. 

22 ‘‘(ii) SUSTAINABLE PRODUCTION

23 METHODS.— 

24 ‘‘(I) IN GENERAL.—The term 

25 ‘sustainable production methods’ 


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1 means the application of technologies 

2 and methods that are necessary to 

3 provide for— 

4 ‘‘(aa) workplace safety, toxic 

5 waste control, and the conserva6 tion of energy and natural re7 sources, based on local standards 

8 and conditions; and 

9 ‘‘(bb) such other relevant 

10 standards as the administering 

11 authority considers appropriate. 

12 ‘‘(II) GUIDANCE ON INTERPRE13 TATION.— 

14 ‘‘(aa) IN GENERAL.—Not 

15 later than one year after the date 

16 of the enactment of the Level the 

17 Playing Field in Global Trade 

18 Act of 2013, the administering 

19 authority shall publish in the 

20 Federal Register guidance, devel21 oped jointly with the Adminis22 trator of the Environmental Pro23 tection Agency and the Secretary 

24 of Labor, with respect to the inVerDate Mar 15 2010 00:17 Dec 17, 2013 Jkt 039200 PO 00000 Frm 00014 Fmt 6652 Sfmt 6201 E:\BILLS\S1801.IS S1801

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1 terpretation of ‘sustainable pro2 duction methods’. 

3 ‘‘(bb) USE OF THIRD-PARTY

4 STANDARDS.—In developing 

5 guidance under item (aa), the ad6 ministering authority and the 

7 Administrator may consider inde8 pendent third-party standards, 

9 including, as appropriate, stand10 ards on an industry-by-industry 

11 or country-by-country basis.’’. 

12 (b) EFFECTIVE DATE.—The amendments made by 

13 subsection (a) shall apply with respect to merchandise im14 ported into the United States— 

15 (1) on and after the date that is 2 years after 

16 the date of the enactment of this Act from— 

17 (A) any country with which the United 

18 States has a free trade agreement in effect; 

19 (B) any country that is a member of the 

20 World Trade Organization; or 

21 (C) Canada or Mexico, pursuant to article 

22 1902 of the North American Free Trade Agree23 ment and section 408 of the North American 

24 Free Trade Agreement Implementation Act (19 

25 U.S.C. 3438); and 


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1 (2) on or after the date that is one year after 

2 the date of the enactment of this Act from any coun3 try other than a country described in paragraph (1). 

Æ 


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