II

106TH CONGRESS

2D SESSION S. 2709

To establish a Beef Industry Compensation Trust Fund with the duties

imposed on products of countries that fail to comply with certain WTO

dispute resolution decisions.

IN THE SENATE OF THE UNITED STATES

JUNE 8, 2000

Mr. BAUCUS (for himself, Mr. BOND, Mr. BINGAMAN, Mr. DORGAN, Mr.

DASCHLE, and Mr. KERREY) introduced the following bill; which was

read twice and referred to the Committee on Agriculture, Nutrition, and

Forestry

A BILL

To establish a Beef Industry Compensation Trust Fund with

the duties imposed on products of countries that fail

to comply with certain WTO dispute resolution decisions.

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 Injury Com5 pensation Act of 2000’’.

6 SEC. 2. FINDINGS.

7 Congress makes the following findings:
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1 (1) United States goods and services compete in

2 global markets and it is necessary for trade agree3 ments to promote such competition.

4 (2) The current dispute resolution mechanism

5 of the World Trade Organization is designed to re6 solve disputes in a manner that brings stability and

7 predictability to world trade.

8 (3) When foreign countries refuse to comply

9 with a panel or Appellate Body report of the World

10 Trade Organization and violate any of the Uruguay

11 Round Agreements, it has a deleterious effect on the

12 United States economy.

13 (4) A WTO member can retaliate against a

14 country that refuses to implement a panel or Appel15 late Body report by imposing additional duties of up

16 to 100 percent on goods imported from the noncom17 plying country.

18 (5) The World Trade Organization Dispute Set19 tlement Body found in favor of the United States re20 garding the European Union’s ban on United States

21 beef produced with hormones and authorized retalia22 tion subsequent to the European Union’s failure to

23 implement that decision.

24 (6) The United States beef industry has suf25 fered by the European Union’s continued noncompli-
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1 ance with the World Trade Organization ruling and

2 should be remedied through the establishment of a

3 Beef Industry Compensation Trust Fund until com4 pliance is achieved.

5 (7) In cases where additional duties are im6 posed such as the United States beef and the Euro7 pean Union dispute, the additional duties should be

8 used to provide relief to the United States beef in9 dustry that has been insured by noncompliance.

10 SEC. 3. DEFINITIONS.

11 In this Act:

12 (1) URUGUAY ROUND AGREEMENTS.—The term

13 ‘‘Uruguay Round Agreements’’ has the meaning

14 given such term in section 2(7) of the Uruguay

15 Round Agreements Act (19 U.S.C. 3501(7).

16 (2) WORLD TRADE ORGANIZATION.—The term

17 ‘‘World Trade Organization’’ means the organization

18 established pursuant to the WTO Agreement.

19 (3) WTO AGREEMENT.—The term ‘‘WTO

20 Agreement’’ means the Agreement Establishing The

21 World Trade Organization entered into on April 15,

22 1994.

23 (4) WTO AND WTO MEMBER.—The terms

24 ‘‘WTO’’ and ‘‘WTO member’’ have the meanings
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1 given those terms in section 2 of the Uruguay

2 Round Agreements Act (19 U.S.C. 3501).

3 (5) INJURED PRODUCER.—The term ‘‘injured

4 producer’’ means a domestic producer of a product

5 (including an agricultural product) with respect to

6 which a dispute resolution proceeding has been

7 brought before the World Trade Organization, if the

8 dispute resolution is resolved in favor of the pro9 ducer, and the foreign country against which the

10 proceeding has been brought has failed to comply

11 with the report of the panel or Appellate Body of the

12 WTO.

13 (6) BEEF RETALIATION LIST.—The term ‘‘beef

14 retaliation list’’ means the list of products of Euro15 pean Union countries with respect to which the

16 United States Trade Representative is imposing du17 ties above the level that would otherwise be imposed

18 under the Harmonized Tariff Schedule of the United

19 States as a result of the European Union’s ban on

20 the importation of United States beef produced with

21 hormones.

22 SEC. 4. BEEF INDUSTRY COMPENSATION TRUST FUND.

23 (a) ESTABLISHMENT.—There is established in the

24 Treasury of the United States a fund to be known as the

25 ‘‘Beef Industry Compensation Trust Fund’’ (referred to
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1 in this Act as the ‘‘Fund’’) consisting of such amounts

2 as may be appropriated or credited to the Fund under sub3 section (b) and any interest earned on investment of

4 amounts in the Fund under subsection (c)(2).

5 (b) TRANSFER OF AMOUNTS EQUIVALENT TO CER6 TAIN DUTIES.—

7 (1) IN GENERAL.—There are hereby appro8 priated and transferred to the Fund an amount

9 equal to the amount received in the Treasury as a

10 result of the imposition of additional duties imposed

11 on the products on a United States beef retaliation

12 list.

13 (2) TRANSFERS BASED ON ESTIMATES.—The

14 amounts required to be transferred under paragraph

15 (1) shall be transferred at least quarterly from the

16 general fund of the Treasury to the Fund on the

17 basis of estimates made by the Secretary of the

18 Treasury. Proper adjustment shall be made in

19 amounts subsequently transferred to the extent prior

20 estimates were in excess of or less than the amounts

21 required to be transferred.

22 (c) INVESTMENT OF FUND.—

23 (1) IN GENERAL.—The Secretary of the Treas24 ury shall invest such portion of the Fund as is not,

25 in the Secretary’s judgment, required to meet cur-
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1 rent withdrawals. Such investments may be made

2 only in interest-bearing obligations of the United

3 States or in obligations guaranteed as to both prin4 cipal and interest by the United States.

5 (2) CREDITS TO FUND.—The interest on, and

6 the proceeds from the sale or redemption of, any ob7 ligations held in the Fund shall be credited to and

8 form a part of the Fund.

9 (d) DISTRIBUTIONS FROM FUND.—Amounts in the

10 Fund shall be available as provided in appropriations Acts,

11 for making distributions in accordance with subsections

12 (e) and (f).

13 (e) AVAILABILITY OF AMOUNTS FROM FUND.—From

14 amounts available in the Fund (including any amounts not

15 obligated in previous fiscal years), the Secretary of Agri16 culture is authorized to provide grants to a nationally rec17 ognized beef promotion and research board established for

18 the education and market promotion of the United States

19 beef industry for the following purposes:

20 (1) To provide assistance to United States beef

21 producers to improve the quality of beef produced in

22 the United States.

23 (2) To provide assistance to United States beef

24 producers in market development, consumer edu-
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1 cation, and promotion of the beef industry in over2 seas markets.

3 (f) TERMINATION OF FUND.—

4 (1) IN GENERAL.—The Secretary of the Treas5 ury shall cease the transfer of amounts equivalent to

6 the duties on the beef retaliation list when the Euro7 pean Union complies with the World Trade Organi8 zation ruling allowing United States beef producers

9 access to the European market and additional duties

10 are no longer imposed on products listed on the beef

11 retaliation list.

12 (2) DISTRIBUTION OF UNUSED FUNDS.—The

13 Secretary of Agriculture shall distribute any unused

14 funds in a manner that benefits the domestic beef

15 industry.

16 (g) REPORT TO CONGRESS.—The Secretary of the

17 Treasury shall, after consultation with the Secretaries of

18 Agriculture, Commerce, and Labor, report to the Congress

19 each year on the financial condition and the results of the

20 operations of the Fund during the preceding fiscal year

21 and on its expected condition and operations during the

22 next fiscal year.

23 SEC. 5. PROHIBITION ON REDUCING SERVICES OR FUNDS.

24 No payment made to an injured producer under this

25 Act shall result in the reduction or denial of any service
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1 or assistance with respect to which the injured producer

2 would otherwise be entitled.

Æ