I

103D CONGRESS

1ST SESSION H. R. 1248

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 9, 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 other than—

12 ‘‘(A) the United States-Canada Free Trade

13 Agreement, entered into on January 2, 1988,

14 and

15 ‘‘(B) the Agreement on the Establishment

16 of a Free Trade Area between the Government

17 of the United States of America and the Gov18 ernment of Israel, entered into on April 22,

19 1985.

20 ‘‘(b) REQUEST FOR REVIEW.—

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

22 Trade Representative to undertake a review under

23 this section to determine whether a foreign country

24 is in material compliance with the terms of a trade

25 agreement.
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1 ‘‘(2) A request for the review of a trade agree2 ment under this section may be made only during—

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

4 anniversary of the effective date of the trade

5 agreement; and

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

7 day before the termination date of the trade

8 agreement, if the first day of such 30-day pe9 riod occurs not less than 180 days after the last

10 occurring 30-day period referred to in subpara11 graph (A).

12 ‘‘(3) The Trade Representative shall commence

13 a review under this section if the request—

14 ‘‘(A) is in writing;

15 ‘‘(B) includes information reasonably avail16 able to the petitioner regarding the failure

17 of the foreign country to comply with the

18 trade agreement;

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

20 petitioner that is being adversely affected by the

21 failure referred to in subparagraph (B); and

22 ‘‘(D) describes the extent of the adverse ef23 fect.

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

25 period described in paragraph (2) regarding the
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1 same trade agreement, all of such requests shall be

2 joined in a single review of the trade agreement.

3 ‘‘(c) REVIEW.—

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

5 agreement are received during any period described

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

7 last day of such period the Trade Representative

8 shall determine whether the foreign country is in

9 material compliance with the terms of the trade

10 agreement.

11 ‘‘(2) In making a determination under para12 graph (1), the Trade Representative shall take into

13 account—

14 ‘‘(A) the extent to which the foreign coun15 try has adhered to the commitments it made to

16 the United States;

17 ‘‘(B) the extent to which that degree of ad18 herence has achieved the objectives of the

19 agreement; and

20 ‘‘(C) any act, policy, or practice of the for21 eign country, or other relevant factor, that may

22 have contributed directly or indirectly to mate23 rial noncompliance with the terms of the agree24 ment.
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1 The acts, policies, or practices referred to in sub2 paragraph (C) may include structural policies, tariff

3 or nontariff barriers, or other actions which affect

4 compliance with the terms of the agreement.

5 ‘‘(3) In conducting any review under para6 graph (1), the Trade Representative may, if the

7 Trade Representative considers such action nec8 essary or appropriate—

9 ‘‘(A) consult with the Secretary of Com10 merce and the Secretary of Agriculture;

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

12 International Trade Commission; and

13 ‘‘(C) provide opportunity for the presen14 tation of views by the public.

15 ‘‘(d) ACTION AFTER AFFIRMATIVE DETERMINA16 TION.—

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

18 under subsection (c), the Trade Representative de19 termines that a foreign country is not in material

20 compliance with the terms of a trade agreement, the

21 Trade Representative shall determine what action to

22 take under section 301(a).

23 ‘‘(2) For purposes of section 301, any deter24 mination made under subsection (c) shall be treated

25 as a determination made under section 304.
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1 ‘‘(3) In determining what action to take under

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

3 to minimize the adverse impact on existing business

4 relations or economic interests of United States per5 sons, including products for which a significant vol6 ume of trade does not currently exist.

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

8 this section may be construed as requiring actions that

9 are inconsistent with the international obligations of the

10 United States, including the General Agreement on Tar11 iffs and Trade.’’.

12 SEC. 3. CONFORMING AMENDMENTS.

13 (a) CONGRESSIONAL NOTIFICATION.—Section

14 309(3)(A) of the Trade Act of 1974 (19 U.S.C.

15 2419(3)(A)) is amended by striking out ‘‘section 302,’’

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

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

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

19 is amended by inserting after the item relating to section

20 306 the following:

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

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