I

103D CONGRESS

1ST SESSION H. R. 1198

To amend the Trade Act of 1974 to provide for the review of the extent

to which foreign countries are in compliance with bilateral trade agreements with the United States.

IN THE HOUSE OF REPRESENTATIVES

MARCH 3, 1993

Mr. MATSUI introduced the following bill; which was referred to the

Committee on Ways and Means

A BILL

To amend the Trade Act of 1974 to provide for the review

of the extent to which foreign countries are in compliance

with bilateral trade agreements with the United States.

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 Agreements

5 Compliance Act of 1993’’.

6 SEC. 2. REQUESTS FOR REVIEW OF FOREIGN COMPLIANCE.

7 Chapter 1 of title III of the Trade Act of 1974 (19

8 U.S.C. 2411 et seq.) is amended by inserting after section

9 306 the following new section:
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1 ‘‘SEC. 306A. REQUESTS FOR REVIEW OF FOREIGN COMPLI2 ANCE.

3 ‘‘(a) DEFINITIONS.—For purposes of this section—

4 ‘‘(1) The term ‘interested person’ means any

5 person that has a significant economic interest that

6 is being, or has been, adversely affected by the fail7 ure of a foreign country to comply materially with

8 the terms of a trade agreement.

9 ‘‘(2) The term ‘trade agreement’ means any bi10 lateral trade agreement to which the United States

11 is a party.

12 ‘‘(b) REQUEST FOR REVIEW.—

13 ‘‘(1) An interested person may request the

14 Trade Representative to undertake a review under

15 this section to determine whether a foreign country

16 is in material compliance with the terms of a trade

17 agreement.

18 ‘‘(2) A request for the review of a trade agree19 ment under this section may be made only during—

20 ‘‘(A) the 30-day period beginning on each

21 anniversary of the effective date of the trade

22 agreement; and

23 ‘‘(B) the 30-day period ending on the 90th

24 day before the termination date of the trade

25 agreement, if the first day of such 30-day pe26 riod occurs not less than 180 days after the last
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1 occurring 30-day period referred to in subpara2 graph (A).

3 ‘‘(3) The Trade Representative shall commence

4 a review under this section if the request—

5 ‘‘(A) is in writing;

6 ‘‘(B) includes information reasonably avail7 able to the petitioner regarding the failure

8 of the foreign country to comply with the

9 trade agreement;

10 ‘‘(C) identifies the economic interest of the

11 petitioner that is being adversely affected by the

12 failure referred to in subparagraph (B); and

13 ‘‘(D) describes the extent of the adverse ef14 fect.

15 ‘‘(4) If 2 or more requests are filed during any

16 period described in paragraph (2) regarding the

17 same trade agreement, all of such requests shall be

18 joined in a single review of the trade agreement.

19 ‘‘(c) REVIEW.—

20 ‘‘(1) If 1 or more requests regarding any trade

21 agreement are received during any period described

22 in subsection (b)(2), then within 90 days after the

23 last day of such period the Trade Representative

24 shall determine whether the foreign country is in
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1 material compliance with the terms of the trade

2 agreement.

3 ‘‘(2) In making a determination under para4 graph (1), the Trade Representative shall take into

5 account—

6 ‘‘(A) the extent to which the foreign coun7 try has adhered to the commitments it made to

8 the United States;

9 ‘‘(B) the extent to which that degree of ad10 herence has achieved the objectives of the

11 agreement; and

12 ‘‘(C) any act, policy, or practice of the for13 eign country, or other relevant factor, that may

14 have contributed directly or indirectly to mate15 rial noncompliance with the terms of the agree16 ment.

17 The acts, policies, or practices referred to in sub18 paragraph (C) may include structural policies, tariff

19 or nontariff barriers, or other actions which affect

20 compliance with the terms of the agreement.

21 ‘‘(3) In conducting any review under para22 graph (1), the Trade Representative may, if the

23 Trade Representative considers such action nec24 essary or appropriate—
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1 ‘‘(A) consult with the Secretary of Com2 merce and the Secretary of Agriculture;

3 ‘‘(B) seek the advice of the United States

4 International Trade Commission; and

5 ‘‘(C) provide opportunity for the presen6 tation of views by the public.

7 ‘‘(d) ACTION AFTER AFFIRMATIVE DETERMINA8 TION.—

9 ‘‘(1) If, on the basis of the review carried out

10 under subsection (c), the Trade Representative de11 termines that a foreign country is not in material

12 compliance with the terms of a trade agreement, the

13 Trade Representative shall determine what action to

14 take under section 301(a).

15 ‘‘(2) For purposes of section 301, any deter16 mination made under subsection (c) shall be treated

17 as a determination made under section 304.

18 ‘‘(3) In determining what action to take under

19 section 301(a), the Trade Representative shall seek

20 to minimize the adverse impact on existing business

21 relations or economic interests of United States per22 sons, including products for which a significant vol23 ume of trade does not currently exist.

24 ‘‘(e) INTERNATIONAL OBLIGATIONS.—Nothing in

25 this section may be construed as requiring actions that
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1 are inconsistent with the international obligations of the

2 United States, including the General Agreement on Tar3 iffs and Trade.’’.

4 SEC. 3. CONFORMING AMENDMENTS.

5 (a) CONGRESSIONAL NOTIFICATION.—Section

6 309(3)(A) of the Trade Act of 1974 (19 U.S.C.

7 2419(3)(A)) is amended by striking out ‘‘section 302,’’

8 and inserting ‘‘sections 302 and 306A(c),’’.

9 (b) TABLE OF CONTENTS.—The table of contents of

10 the Trade Act of 1974 relating to chapter 1 of title III

11 is amended by inserting after the item relating to section

12 306 the following:

‘‘Sec. 306A. Requests for review of foreign compliance.’’.

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