I 

112TH CONGRESS 

2D SESSION H. R. 4621 

To authorize negotiations with Brazil to eliminate tariffs and trade barriers 

to United States ethanol exports. 

IN THE HOUSE OF REPRESENTATIVES 

APRIL 25, 2012 

Mr. RANGEL 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 negotiations with Brazil to eliminate tariffs 

and trade barriers to United States ethanol exports. 

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-Brazil 

5 Ethanol Open Market Agreements Act’’. 

6 SEC. 2. FINDINGS AND STATEMENT OF POLICY. 

7 (a) FINDINGS.—Congress finds the following: 

8 (1) Brazil is the second largest consumer of 

9 ethanol after the United States. For the United 

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1 States ethanol industry, Brazil represents a valuable 

2 and growing market for United States exports of 

3 ethanol. More than one-third of United States eth4 anol exports were destined for Brazil in 2011. 

5 (2) Over the last 5 years, exports of United 

6 States ethanol have risen dramatically, from ap7 proximately 100,000,000 gallons annually, to nearly 

8 500,000,000 gallons exported in 2010, and climbing 

9 to more than 1,000,000,000 gallons in 2011 at an 

10 estimated $2,500,000,000. 

11 (3) Intervention in the ethanol sector by the 

12 Government of Brazil has distorted the market for 

13 imported ethanol in Brazil. To date, Brazil has ma14 nipulated the ethanol blending requirement with the 

15 effect of reducing demand for imported ethanol; 

16 used price controls on gasoline thus reducing de17 mand for ethanol imports; used tax policies to favor 

18 consumption of Brazilian produced ethanol over im19 ported ethanol; and subsidized the Brazilian ethanol 

20 industry through infrastructure and other policies 

21 that encourage Brazilian production and exports. 

22 The Brazilian government’s actions have had a di23 rect and detrimental impact on United States ex24 ports of ethanol to Brazil. 

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1 (4) Brazil recently issued a temporary waiver of 

2 its 20 percent import tariff on ethanol but retains 

3 the ability to revoke the waiver and impose tariffs on 

4 United States ethanol. 

5 (5) At the end of 2011, the United States Gov6 ernment allowed additional duties on ethanol under 

7 subchapter I of chapter 99 of the Harmonized Tariff 

8 Schedule of the United States to expire. 

9 (6) The Western Hemisphere has developed a 

10 diversified yet integrated supply chain for ethanol 

11 production binding Brazil, the Caribbean, and the 

12 United States. Preservation of this mutually bene13 ficial relationship in ethanol production should be a 

14 key priority in trade negotiations with Brazil. 

15 (b) STATEMENT OF POLICY.—Congress calls on the 

16 President, acting through the Office of the United States 

17 Trade Representative, to enter into negotiations with 

18 Brazil for the purpose of reaching a binding and enforce19 able agreement removing tariff and nontariff barriers to 

20 United States ethanol exports to Brazil, consistent with 

21 the objectives of the Caribbean Basin Initiative. 

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1 SEC. 3. AUTHORITY TO ENTER INTO ETHANOL TRADE NE2 GOTIATIONS WITH BRAZIL. 

3 (a) PRINCIPAL TRADE NEGOTIATING OBJECTIVES.— 

4 The principal trade negotiating objectives of the United 

5 States for the agreement described in subsection (b) are— 

6 (1) to obtain open and reciprocal market access 

7 for trade in ethanol products between the United 

8 States and Brazil; 

9 (2) to obtain the elimination of barriers and 

10 distortions imposed by the national Government of 

11 Brazil or its state governments that are directly re12 lated to trade in ethanol and that decrease market 

13 opportunities for United States ethanol exports to 

14 Brazil; 

15 (3) to ensure a stable market for United States 

16 ethanol exports to Brazil, by obtaining a binding, en17 forceable agreement with appropriate dispute settle18 ment procedures; and 

19 (4) to promote energy independence and re20 gional stability by preserving existing Caribbean 

21 preference programs that strengthen the integrated 

22 hemispheric ethanol supply chain among Brazil, the 

23 Caribbean nations, and the United States. 

24 (b) AUTHORITY TO ENTER INTO NEGOTIATIONS

25 WITH BRAZIL.— 

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1 (1) IN GENERAL.—The President is authorized 

2 to enter into negotiations with Brazil for the pur3 pose of concluding a trade agreement that achieves 

4 the trade negotiating objectives of subsection (a). 

5 (2) CONGRESSIONAL NOTIFICATION.—The 

6 President shall notify the Committees on Ways and 

7 Means and Agriculture of the House of Representa8 tives and the Committees on Finance and Agri9 culture of the Senate in writing not later than 30 

10 days after commencing negotiations under para11 graph (1). 

12 SEC. 4. EXTENSION OF ADDITIONAL DUTY ON ETHANOL. 

13 (a) IN GENERAL.—Heading 9901.00.50 of the Har14 monized Tariff Schedule of the United States is amended 

15 by striking ‘‘1/1/2012’’ in the effective period column and 

16 inserting ‘‘1/1/2015’’. 

17 (b) EFFECTIVE DATE.—The amendment made by 

18 subsection (a) applies to goods entered, or withdrawn from 

19 warehouse for consumption, on or after the 15th day after 

20 the date of the enactment of this Act. 

21 SEC. 5. PRESIDENTIAL PROCLAMATION AUTHORITY AND 

22 CERTIFICATION OF AN ETHANOL OPEN MAR23 KET AGREEMENT. 

24 (a) IN GENERAL.—Beginning on the date on which 

25 submits to Congress a certification described in subsection 

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1 (b), and subject to the consultation and layover provisions 

2 of section 6, the President is authorized to proclaim the 

3 suspension of the extension of the additional duty on eth4 anol under heading 9901.00.50 of the Harmonized Tariff 

5 Schedule of the United States, as amended by section 4 

6 of this Act. 

7 (b) CERTIFICATION DESCRIBED.—The certification 

8 referred to in subsection (a) is a certification by the Presi9 dent that the United States has obtained an enforceable 

10 agreement with the Government of Brazil that eliminates 

11 all tariffs and nontariff barriers on imported United 

12 States-produced ethanol, including binding Brazil’s tariff 

13 rate on imports of United States ethanol at an effective 

14 rate of zero. 

15 SEC. 6. CONSULTATION AND LAYOVER PROVISIONS FOR, 

16 AND EFFECTIVE DATE OF, PROCLAIMED AC17 TIONS. 

18 The consultation and layover requirements of this 

19 section are that the President may proclaim an action de20 scribed in section 5 only if— 

21 (1) the President has obtained advice regarding 

22 the proposed action from— 

23 (A) the appropriate advisory committees 

24 established under section 135 of the Trade Act 

25 of 1974 (19 U.S.C. 2155); and 

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1 (B) the International Trade Commission; 

2 (2) the President has submitted to the Com3 mittee on Finance of the Senate and the Committee 

4 on Ways and Means of the House of Representatives 

5 a report that sets forth— 

6 (A) the action proposed to be proclaimed 

7 and the reasons for the action, including a de8 scription of how the trade negotiating objectives 

9 in section 3 have been met; and 

10 (B) the advice obtained under paragraph 

11 (1); 

12 (3) a period of 60 calendar days, beginning on 

13 the first day on which the requirements set forth in 

14 paragraphs (1) and (2) have been met, has expired; 

15 and 

16 (4) the President has consulted with the com17 mittees referred to in paragraph (2) regarding the 

18 proposed action during the period referred to in 

19 paragraph (3). 

20 SEC. 7. REVIEW OF STATUS OF NEGOTIATIONS WITH 

21 BRAZIL ON ESTABLISHMENT OF DUTY-FREE 

22 TRADE IN ETHANOL. 

23 Not later than 180 days after the date of the enact24 ment of this Act, and every 12 months thereafter, the 

25 President shall submit to the Committees on Ways and 

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1 Means and Agriculture of the House of Representatives 

2 and the Committees on Finance and Agriculture of the 

3 Senate a report on the status of trade negotiations de4 scribed in section 3. 

5 SEC. 8. CONGRESSIONAL DISAPPROVAL OF PRESIDENTIAL 

6 CERTIFICATION. 

7 (a) GENERAL RULE.— 

8 (1) IN GENERAL.—The proclamation authority 

9 under section 5 shall cease to be effective if a joint 

10 resolution described in subsection (b) is enacted into 

11 law pursuant to the provisions of paragraph (2). 

12 (2) PROCEDURAL PROVISIONS.— 

13 (A) IN GENERAL.—The requirements of 

14 this paragraph are met if the joint resolution 

15 described in subsection (b) is enacted in accord16 ance with the procedures described in sub17 section (b), and— 

18 (i) Congress adopts and transmits the 

19 joint resolution to the President before the 

20 end of the 90-day period (excluding any 

21 day described in section 154(b) of the 

22 Trade Act of 1974), beginning on the date 

23 on which the Congress receives the certifi24 cation referred to section 5; and 

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1 (ii) if the President vetoes the joint 

2 resolution, each House of Congress votes 

3 to override that veto on or before the later 

4 of the last day of the 90-day period re5 ferred to in clause (i) or the last day of the 

6 15-day period (excluding any day described 

7 in section 154(b) of the Trade Act of 

8 1974) beginning on the date on which the 

9 Congress receives the veto message from 

10 the President. 

11 (B) INTRODUCTION.—A joint resolution to 

12 which this section applies may be introduced at 

13 any time on or after the date on which the 

14 President transmits to Congress a certification 

15 described in section 4, and before the end of the 

16 90-day period referred to in subparagraph (A). 

17 (b) JOINT RESOLUTIONS.— 

18 (1) JOINT RESOLUTIONS.—For purposes of this 

19 section, the term ‘‘joint resolution’’ means only a 

20 joint resolution of the two Houses of Congress, the 

21 matter after the resolving clause of which is as fol22 lows: ‘‘That the suspension of the extension of the 

23 additional duty on ethanol under heading 

24 9901.00.50 of the Harmonized Tariff Schedule of 

25 the United States, as proclaimed by the President 

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1 under section 5 of the United States-Brazil Ethanol 

2 Open Market Agreements Act, is hereby rescinded.’’. 

3 (2) PROCEDURES.— 

4 (A) IN GENERAL.—A joint resolution 

5 under this subsection may be introduced in ei6 ther House of the Congress by any member of 

7 such House. 

8 (B) COMMITTEE AND FLOOR PROCE9 DURES.—Subject to the provisions of this sub10 section, the provisions of subsections (b), (d), 

11 (e), and (f) of section 152 of the Trade Act of 

12 1974 (19 U.S.C. 2192(b), (d), (e), and (f)) 

13 apply to a joint resolution under this subsection 

14 to the same extent as such provisions apply to 

15 a joint resolution under section 152 of such 

16 Act. 

17 (C) COMMITTEE DISCHARGE.—If the com18 mittee of either House to which a joint resolu19 tion under this subsection has been referred has 

20 not reported it by the close of the 45th day 

21 after its introduction (excluding any day de22 scribed in section 154(b) of the Trade Act of 

23 1974), such committee shall be automatically 

24 discharged from further consideration of the 

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1 joint resolution and it shall be placed on the ap2 propriate calendar. 

3 (D) COMMITTEES.—It is not in order 

4 for— 

5 (i) the Senate to consider any joint 

6 resolution unless it has been reported by 

7 the Committee on Finance or the com8 mittee has been discharged under subpara9 graph (C); or 

10 (ii) the House of Representatives to 

11 consider any joint resolution unless it has 

12 been reported by the Committee on Ways 

13 and Means or the committee has been dis14 charged under subparagraph (C). 

15 (E) CONSIDERATION IN HOUSE OF REP16 RESENTATIVES.—A motion in the House of 

17 Representatives to proceed to the consideration 

18 of a joint resolution may only be made on the 

19 second legislative day after the calendar day on 

20 which the Member making the motion an21 nounces to the House his or her intention to do 

22 so. 

23 (3) CONSIDERATION OF SECOND RESOLUTION

24 NOT IN ORDER.—It shall not be in order in either 

25 the House of Representatives or the Senate to conmstockstill on DSK4VPTVN1PROD with BILLS

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1 sider a joint resolution under this subsection (other 

2 than a joint resolution received from the other 

3 House), if that House has previously adopted a joint 

4 resolution under this subsection. 

5 (c) RULES OF HOUSE OF REPRESENTATIVES AND

6 SENATE.—This section is enacted by Congress— 

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

8 the House of Representatives and the Senate, re9 spectively, and as such is deemed a part of the rules 

10 of each House, respectively, and such procedures su11 persede other rules only to the extent that they are 

12 inconsistent with such other rules; and 

13 (2) with the full recognition of the constitu14 tional right of either House to change the rules (so 

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

16 any time, in the same manner, and to the same ex17 tent as any other rule of that House. 

18 SEC. 9. RULE OF CONSTRUCTION. 

19 Nothing in this Act or any amendment made by this 

20 Act shall be construed to modify any benefit conferred 

21 under the Caribbean Basin Economic Recovery Act (19 

22 U.S.C. 2701 et seq.). 

Æ 

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