Calendar No. 276

106TH CONGRESS

1ST SESSION S. 566

[Report No. 106–157]

A BILL

To amend the Agricultural Trade Act of 1978 to

exempt agricultural commodities, livestock, andvalue-added products from unilateral economicsanctions, to prepare for future bilateral andmultilateral trade negotiations affecting UnitedStates agriculture, and for other purposes.

SEPTEMBER 13, 1999

Reported with an amendment and an amendment to the

title
II

Calendar No. 276

106TH CONGRESS

1ST SESSION S. 566

[Report No. 106–157]

To amend the Agricultural Trade Act of 1978 to exempt agricultural commodities, livestock, and value-added products from unilateral economic sanctions, to prepare for future bilateral and multilateral trade negotiations

affecting United States agriculture, and for other purposes.

IN THE SENATE OF THE UNITED STATES

MARCH 8, 1999

Mr. LUGAR (for himself, Mr. MCCONNELL, Mr. GORTON, Mrs. MURRAY, Mr.

FITZGERALD, Mrs. LINCOLN, Mr. DASCHLE, Mr. COCHRAN, Mr. BAUCUS,

Mr. HARKIN, Mr. ROBERTS, Mr. KERREY, Mr. GRAMS, Mr. JOHNSON,

Mr. LEAHY, Mr. SANTORUM, Mr. BAYH, Mr. CONRAD, Mr. CRAIG, Mr.

BURNS, Mr. SMITH of Oregon, Mr. BOND, Mr. ALLARD, Mr. BUNNING,

Mrs. HUTCHISON, Mr. GRAMM, Mr. CLELAND, and Mr. CAMPBELL) introduced the following bill; which was read twice and referred to the Committee on Agriculture, Nutrition, and Forestry

SEPTEMBER 13, 1999

Reported by Mr. LUGAR, with an amendment and an amendment to the title

[Strike out all after the enacting clause and insert the part printed in italic]

A BILL

To amend the Agricultural Trade Act of 1978 to exempt

agricultural commodities, livestock, and value-added

products from unilateral economic sanctions, to prepare

for future bilateral and multilateral trade negotiations
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affecting United States agriculture, 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 ‘‘Agricultural Trade

5 Freedom Act’’.

6 SEC. 2. DEFINITIONS.

7 In this Act, the terms ‘‘agricultural commodity’’ and

8 ‘‘United States agricultural commodity’’ have the mean9 ings given the terms in section 102 of the Agricultural

10 Trade Act of 1978 (7 U.S.C. 5602).

11 SEC. 3. AGRICULTURAL COMMODITIES, LIVESTOCK, AND

12 PRODUCTS EXEMPT FROM SANCTIONS.

13 Title IV of the Agricultural Trade Act of 1978 (7

14 U.S.C. 5661 et seq.) is amended by adding at the end

15 the following:

16 ‘‘SEC. 418. AGRICULTURAL COMMODITIES, LIVESTOCK, AND

17 PRODUCTS EXEMPT FROM SANCTIONS.

18 ‘‘(a) DEFINITIONS.—In this section:

19 ‘‘(1) CURRENT SANCTION.—The term ‘current

20 sanction’ means a unilateral economic sanction that

21 is in effect on the date of enactment of the Agricul22 tural Trade Freedom Act.
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1 ‘‘(2) NEW SANCTION.—The term ‘new sanction’

2 means a unilateral economic sanction that becomes

3 effective after the date of enactment of that Act.

4 ‘‘(3) UNILATERAL ECONOMIC SANCTION.—The

5 term ‘unilateral economic sanction’ means any prohi6 bition, restriction, or condition on economic activity,

7 including economic assistance, with respect to a for8 eign country or foreign entity that is imposed by the

9 United States for reasons of foreign policy or na10 tional security, except in a case in which the United

11 States imposes the measure pursuant to a multilat12 eral regime and the other members of that regime

13 have agreed to impose substantially equivalent meas14 ures.

15 ‘‘(b) EXEMPTION.—

16 ‘‘(1) IN GENERAL.—Subject to paragraphs (2)

17 and (3) and notwithstanding any other provision of

18 law, agricultural commodities made available as a re19 sult of commercial sales shall be exempt from a uni20 lateral economic sanction imposed by the United

21 States on another country.

22 ‘‘(2) EXCLUSIONS.—Paragraph (1) shall not

23 apply to agricultural commodities made available as

24 a result of programs carried out under—
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1 ‘‘(A) the Agricultural Trade Development

2 and Assistance Act of 1954 (7 U.S.C. 1691 et

3 seq.);

4 ‘‘(B) section 416 of the Agricultural Act of

5 1949 (7 U.S.C. 1431);

6 ‘‘(C) the Food for Progress Act of 1985 (7

7 U.S.C. 1736o); or

8 ‘‘(D) the Agricultural Trade Act of 1978

9 (7 U.S.C. 5601 et seq.).

10 ‘‘(3) DETERMINATION BY PRESIDENT.—If the

11 President determines that the exemption provided

12 under paragraph (1) should not apply to a unilateral

13 economic sanction for reasons of foreign policy or

14 national security, the President may include the ag15 ricultural commodities made available as a result of

16 the activities described in paragraph (1) in the uni17 lateral economic sanction.

18 ‘‘(c) CURRENT SANCTIONS.—

19 ‘‘(1) IN GENERAL.—Subject to paragraph (2),

20 the exemption under subsection (b)(1) shall apply to

21 a current sanction.

22 ‘‘(2) PRESIDENTIAL REVIEW.—Not later than

23 90 days after the date of enactment of the Agricul24 tural Trade Freedom Act, the President shall review

25 each current sanction to determine whether the ex-
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1 emption under subsection (b)(1) should apply to the

2 current sanction.

3 ‘‘(3) APPLICATION.—The exemption under sub4 section (b)(1) shall apply to a current sanction be5 ginning on the date that is 180 days after the date

6 of enactment of the Agricultural Trade Freedom Act

7 unless the President determines that the exemption

8 should not apply to the current sanction for reasons

9 of foreign policy or national security.

10 ‘‘(d) REPORT.—

11 ‘‘(1) IN GENERAL.—If the President determines

12 that the exemption under subsection (b)(2) or (c)(2)

13 should not apply to a unilateral economic sanction,

14 the President shall submit a report to the Com15 mittee on Agriculture of the House of Representa16 tives and the Committee on Agriculture, Nutrition,

17 and Forestry of the Senate—

18 ‘‘(A) in the case of a current sanction, not

19 later than 15 days after the date of the deter20 mination under subsection (c)(2); and

21 ‘‘(B) in the case of a new sanction, on the

22 date of the imposition of the new sanction.

23 ‘‘(2) CONTENTS OF REPORT.—The report shall

24 contain—
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1 ‘‘(A) an explanation of the foreign policy

2 or national security reasons for which the ex3 emption should not apply to the unilateral eco4 nomic sanction; and

5 ‘‘(B) an assessment by the Secretary—

6 ‘‘(i) regarding export sales—

7 ‘‘(I) in the case of a current

8 sanction, whether markets in the

9 sanctioned country or countries

10 present a substantial trade oppor11 tunity for export sales of a United

12 States agricultural commodity; or

13 ‘‘(II) in the case of a new sanc14 tion, the extent to which any country

15 or countries to be sanctioned or likely

16 to be sanctioned are markets that ac17 counted for, during the preceding cal18 endar year, more than 3 percent of

19 export sales of a United States agri20 cultural commodity;

21 ‘‘(ii) regarding the effect on United

22 States agricultural commodities—

23 ‘‘(I) in the case of a current

24 sanction, the potential for export sales

25 of United States agricultural commod-
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1 ities in the sanctioned country or

2 countries; and

3 ‘‘(II) in the case of a new sanc4 tion, the likelihood that exports of

5 United States agricultural commod6 ities will be affected by the new sanc7 tion or by retaliation by any country

8 to be sanctioned or likely to be sanc9 tioned, including a description of spe10 cific United States agricultural com11 modities that are most likely to be af12 fected;

13 ‘‘(iii) regarding the income of agricul14 tural producers—

15 ‘‘(I) in the case of a current

16 sanction, the potential for increasing

17 the income of producers of the United

18 States agricultural commodities in19 volved; and

20 ‘‘(II) in the case of a new sanc21 tion, the likely effect on incomes of

22 producers of the agricultural commod23 ities involved;

24 ‘‘(iv) regarding displacement of

25 United States suppliers—
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1 ‘‘(I) in the case of a current

2 sanction, the potential for increased

3 competition for United States sup4 pliers of the agricultural commodity in

5 countries that are not subject to the

6 current sanction; and

7 ‘‘(II) in the case of a new sanc8 tion, the extent to which the new

9 sanction would permit foreign sup10 pliers to replace United States sup11 pliers; and

12 ‘‘(v) regarding the reputation of

13 United States agricultural producers as re14 liable suppliers—

15 ‘‘(I) in the case of a current

16 sanction, whether removing the sanc17 tion would increase the reputation of

18 United States producers as reliable

19 suppliers of agricultural commodities

20 in general, and of specific agricultural

21 commodities identified by the Sec22 retary; and

23 ‘‘(II) in the case of a new sanc24 tion, the likely effect of the proposed

25 sanction on the reputation of United
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1 States producers as reliable suppliers

2 of agricultural commodities in general,

3 and of specific agricultural commod4 ities identified by the Secretary.’’.

5 SEC. 4. OBJECTIVES FOR AGRICULTURAL NEGOTIATIONS.

6 It is the sense of Congress that the principal agricul7 tural trade negotiating objectives of the United States for

8 future multilateral and bilateral trade negotiations (in9 cluding negotiations involving the World Trade Organiza10 tion) should be to achieve, on an expedited basis and to

11 the maximum extent practicable, more open and fair con12 ditions for trade in agricultural commodities by—

13 (1) developing, strengthening, and clarifying

14 rules for trade in agricultural commodities, including

15 eliminating or reducing restrictive or trade-distorting

16 import and export practices, including—

17 (A) enhancing the operation and effective18 ness of the relevant provisions of the Uruguay

19 Round Agreements designed to define, deter,

20 and discourage the persistent use of unfair

21 trade practices; and

22 (B) enforcing and strengthening rules of

23 the World Trade Organization regarding—
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1 (i) trade-distorting practices of state

2 trading enterprises and similar public and

3 private trading enterprises; and

4 (ii) the acts, practices, or policies of a

5 foreign government that unreasonably—

6 (I) require that substantial direct

7 investment in the foreign country be

8 made as a condition for carrying on

9 business in the foreign country;

10 (II) require that intellectual

11 property be licensed to the foreign

12 country or to any firm of the foreign

13 country; or

14 (III) delay or preclude implemen15 tation of a report of a dispute panel

16 of the World Trade Organization;

17 (2) increasing the export of United States agri18 cultural commodities by eliminating barriers to trade

19 (including transparent and nontransparent barriers);

20 (3) eliminating other specific constraints to fair

21 trade (such as export subsidies, quotas, and other

22 nontariff import barriers and more open market ac23 cess) in foreign markets for United States agricul24 tural commodities;
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1 (4) developing, strengthening, and clarifying

2 rules that address practices that unfairly limit

3 United States market access opportunities or distort

4 markets for United States agricultural commodities

5 to the detriment of the United States, including—

6 (A) unfair or trade-distorting activities of

7 state trading enterprises, and similar public and

8 private trading enterprises, that result in inad9 equate price transparency;

10 (B) unjustified restrictions or commercial

11 requirements affecting new technologies, includ12 ing biotechnology;

13 (C) unjustified sanitary or phytosanitary

14 restrictions; and

15 (D) restrictive rules in the establishment

16 and administration of tariff-rate quotas;

17 (5) ensuring that there are reliable suppliers of

18 agricultural commodities in international commerce

19 by encouraging countries to treat foreign buyers no

20 less favorably than domestic buyers of the com21 modity or product involved; and

22 (6) eliminating nontariff trade barriers for

23 meeting the food needs of an increasing world popu24 lation through the use of biotechnology by—
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1 (A) ensuring market access to United

2 States agricultural commodities derived from

3 biotechnology that is scientifically defensible;

4 (B) opposing the establishment of protec5 tionist trade measures disguised as health

6 standards; and

7 (C) protesting continual delays by other

8 countries in their approval processes.

9 SEC. 5. SALE OR BARTER OF FOOD ASSISTANCE.

10 It is the sense of Congress that the amendments to

11 section 203 of the Agricultural Trade Development and

12 Assistance Act of 1954 (7 U.S.C. 1723) made by section

13 208 of the Federal Agriculture Improvement and Reform

14 Act of 1996 (Public Law 104–127; 110 Stat. 954) were

15 intended to allow the sale or barter of United States agri16 cultural commodities in connection with United States

17 food assistance only within the recipient country or coun18 tries adjacent to the recipient country, unless—

19 (1) the sale or barter within the recipient coun20 try or adjacent countries is not practicable; and

21 (2) the sale or barter within countries other

22 than the recipient country or adjacent countries will

23 not disrupt commercial markets for the agricultural

24 commodity involved.
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1 SEC. 6. SENSE OF CONGRESS REGARDING RELIEF FROM

2 UNFAIR TRADE PRACTICES AFFECTING

3 UNITED STATES AGRICULTURAL COMMOD4 ITIES.

5 (a) FINDINGS.—Congress finds that—

6 (1) often dispute settlement proceedings to re7 solve unfair trade practices of foreign countries that

8 restrict market access of United States agricultural

9 commodities are inadequate, time consuming, and

10 cumbersome; and

11 (2) practices that unfairly limit market access

12 opportunities for United States agricultural com13 modities through export subsidies and import bar14 riers include—

15 (A) unfair or trade-distorting activities of

16 state trading enterprises, and similar public and

17 private trading enterprises, that result in inad18 equate price transparency;

19 (B) unjustified restrictions or commercial

20 requirements affecting new technologies, includ21 ing biotechnology, that are not scientifically de22 fensible;

23 (C) unjustified sanitary or phytosanitary

24 restrictions;

25 (D) restrictive rules for the establishment

26 and administration of tariff-rate quotas;
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1 (E) requirements that substantial direct

2 investment in the foreign country be made as a

3 condition for carrying on business in the foreign

4 country; and

5 (F) requirements that intellectual property

6 be licensed to the foreign country or to any firm

7 of the foreign country.

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

10 use the authorities granted to the Secretary under section

11 302 of the Agricultural Trade Act of 1978 (7 U.S.C.

12 5652), which provides the Secretary with the authority to

13 use programs of the Department of Agriculture for the

14 agricultural commodity involved when there is undue delay

15 in a dispute resolution proceeding of an international

16 trade agreement (such as an agreement administered by

17 the World Trade Organization).

18 SEC. 7. MICRONUTRIENT FORTIFICATION PILOT PROGRAM.

19 Section 415 of the Agricultural Trade Development

20 and Assistance Act of 1954 (7 U.S.C. 1736g–2) is re21 pealed.

22 SEC. 8. TECHNICAL CORRECTIONS.

23 (a) ADMINISTRATIVE PROVISIONS.—Section 216 of

24 the Federal Agriculture Improvement and Reform Act of

25 1996 (Public Law 104–127; 110 Stat. 957) is amended—
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1 (1) in paragraph (2), by striking ‘‘subsection

2 (c)’’ and inserting ‘‘subsection (b)’’;

3 (2) in paragraph (3), by striking ‘‘subsection

4 (d)’’ and inserting ‘‘subsection (c)’’;

5 (3) in paragraph (4), by striking ‘‘subsection

6 (g)(2)’’ and inserting ‘‘subsection (f)(2)’’; and

7 (4) in paragraph (5), by striking ‘‘subsection

8 (h)’’ and inserting ‘‘subsection (g)’’.

9 (b) EMERGING MARKETS.—Section 1542(d)(1)(A)(i)

10 of the Food, Agriculture, Conservation, and Trade Act of

11 1990 (Public Law 101–624; 7 U.S.C. 5622 note) is

12 amended by striking ‘‘such democracies’’ and inserting

13 ‘‘the markets’’.

14 (c) TRADE COMPENSATION AND ASSISTANCE PRO15 GRAMS.—Section 417(a) of the Agricultural Trade Act of

16 1978 (7 U.S.C. 5677(a)) is amended by inserting ‘‘of an

17 agricultural commodity’’ after ‘‘causes exports’’.

18 (d) EFFECTIVE DATE.—The amendments made by

19 this section take effect on April 4, 1996.

20 SECTION 1. SHORT TITLE.

21 This Act may be cited as the ‘‘Agricultural Trade Free22 dom Act’’.

23 SEC. 2. DEFINITIONS.

24 In this Act, the terms ‘‘agricultural commodity’’ and

25 ‘‘United States agricultural commodity’’ have the meanings
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1 given the terms in section 102 of the Agricultural Trade

2 Act of 1978 (7 U.S.C. 5602).

3 SEC. 3. AGRICULTURAL COMMODITIES, LIVESTOCK, AND

4 PRODUCTS EXEMPT FROM UNILATERAL AGRI5 CULTURAL SANCTIONS.

6 Title IV of the Agricultural Trade Act of 1978 (7

7 U.S.C. 5661 et seq.) is amended by adding at the end the

8 following:

9 ‘‘SEC. 418. AGRICULTURAL COMMODITIES, LIVESTOCK, AND

10 PRODUCTS EXEMPT FROM UNILATERAL AGRI11 CULTURAL SANCTIONS.

12 ‘‘(a) DEFINITIONS.—In this section:

13 ‘‘(1) CURRENT SANCTION.—The term ‘current

14 sanction’ means a unilateral agricultural sanction

15 that is in effect on the date of enactment of the Agri16 cultural Trade Freedom Act.

17 ‘‘(2) NEW SANCTION.—The term ‘new sanction’

18 means a unilateral agricultural sanction that becomes

19 effective after the date of enactment of that Act.

20 ‘‘(3) UNILATERAL AGRICULTURAL SANCTION.—

21 The term ‘unilateral agricultural sanction’ means

22 any prohibition, restriction, or condition that is im23 posed on the export of an agricultural commodity to

24 a foreign country or foreign entity and that is im25 posed by the United States for reasons of the national
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1 interest, except in a case in which the United States

2 imposes the measure pursuant to a multilateral re3 gime and the other members of that regime have

4 agreed to impose substantially equivalent measures.

5 ‘‘(b) EXEMPTION.—

6 ‘‘(1) IN GENERAL.—Subject to paragraphs (2)

7 and (3) and notwithstanding any other provision of

8 law, agricultural commodities made available as a re9 sult of commercial sales shall be exempt from a uni10 lateral agricultural sanction imposed by the United

11 States on another country.

12 ‘‘(2) EXCLUSIONS.—Paragraph (1) shall not

13 apply to agricultural commodities made available as

14 a result of programs carried out under—

15 ‘‘(A) the Agricultural Trade Development

16 and Assistance Act of 1954 (7 U.S.C. 1691 et

17 seq.);

18 ‘‘(B) section 416 of the Agricultural Act of

19 1949 (7 U.S.C. 1431);

20 ‘‘(C) the Food for Progress Act of 1985 (7

21 U.S.C. 1736o);

22 ‘‘(D) the Agricultural Trade Act of 1978 (7

23 U.S.C. 5601 et seq.); or

24 ‘‘(E) section 153 of the Food Security Act

25 of 1985 (15 U.S.C. 713a–14).
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1 ‘‘(3) DETERMINATION BY PRESIDENT.—The

2 President may include agricultural commodities

3 made available as a result of the activities described

4 in paragraph (1) in the unilateral agricultural sanc5 tion imposed on a foreign country or foreign entity

6 if—

7 ‘‘(A) a declaration of war by Congress is in

8 effect with respect to the foreign country or for9 eign entity; or

10 ‘‘(B)(i) the President determines that inclu11 sion of the agricultural commodities is in the na12 tional interest;

13 ‘‘(ii) the President submits the report re14 quired under subsection (d); and

15 ‘‘(iii) Congress has not approved a joint

16 resolution stating the disapproval of Congress of

17 the report submitted under subsection (d).

18 ‘‘(4) EFFECT ON AGRICULTURAL TRADE.—Noth19 ing in this subsection requires the imposition of a

20 unilateral agricultural sanction with respect to an

21 agricultural commodity, whether exported in connec22 tion with a commercial sale or a program described

23 in paragraph (2).

24 ‘‘(c) CURRENT SANCTIONS.—
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1 ‘‘(1) IN GENERAL.—Subject to paragraph (2), the

2 exemption under subsection (b)(1) shall apply to a

3 current sanction.

4 ‘‘(2) PRESIDENTIAL REVIEW.—Not later than 90

5 days after the date of enactment of the Agricultural

6 Trade Freedom Act, the President shall review each

7 current sanction to determine whether the exemption

8 under subsection (b)(1) should apply to the current

9 sanction.

10 ‘‘(3) APPLICATION.—The exemption under sub11 section (b)(1) shall apply to a current sanction begin12 ning on the date that is 180 days after the date of

13 enactment of the Agricultural Trade Freedom Act un14 less the President determines that the exemption

15 should not apply to the current sanction for reasons

16 of the national interest.

17 ‘‘(d) REPORT.—

18 ‘‘(1) IN GENERAL.—If the President determines

19 under subsection (b)(3)(B)(i) or (c)(3) that the exemp20 tion should not apply to a unilateral agricultural

21 sanction, the President shall submit a report to Con22 gress not later than 15 days after the date of the de23 termination.

24 ‘‘(2) CONTENTS OF REPORT.—The report shall

25 contain—
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1 ‘‘(A) an explanation of—

2 ‘‘(i) the economic activity that is pro3 posed to be prohibited, restricted, or condi4 tioned by the unilateral agricultural sanc5 tion; and

6 ‘‘(ii) the national interest for which the

7 exemption should not apply to the unilat8 eral agricultural sanction; and

9 ‘‘(B) an assessment by the Secretary—

10 ‘‘(i) regarding export sales—

11 ‘‘(I) in the case of a current sanc12 tion, whether markets in the sanctioned

13 country or countries present a substan14 tial trade opportunity for export sales

15 of a United States agricultural com16 modity; or

17 ‘‘(II) in the case of a new sanc18 tion, the extent to which any country

19 or countries to be sanctioned or likely

20 to be sanctioned are markets that ac21 counted for, during the preceding cal22 endar year, more than 3 percent of ex23 port sales of a United States agricul24 tural commodity;
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1 ‘‘(ii) regarding the effect on United

2 States agricultural commodities—

3 ‘‘(I) in the case of a current sanc4 tion, the potential for export sales of

5 United States agricultural commodities

6 in the sanctioned country or countries;

7 and

8 ‘‘(II) in the case of a new sanc9 tion, the likelihood that exports of

10 United States agricultural commodities

11 will be affected by the new sanction or

12 by retaliation by any country to be

13 sanctioned or likely to be sanctioned,

14 including a description of specific

15 United States agricultural commodities

16 that are most likely to be affected;

17 ‘‘(iii) regarding the income of agricul18 tural producers—

19 ‘‘(I) in the case of a current sanc20 tion, the potential for increasing the

21 income of producers of the United

22 States agricultural commodities in23 volved; and

24 ‘‘(II) in the case of a new sanc25 tion, the likely effect on incomes of pro-
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1 ducers of the agricultural commodities

2 involved;

3 ‘‘(iv) regarding displacement of United

4 States suppliers—

5 ‘‘(I) in the case of a current sanc6 tion, the potential for increased com7 petition for United States suppliers of

8 the agricultural commodity in coun9 tries that are not subject to the current

10 sanction because of uncertainty about

11 the reliability of the United States sup12 pliers; and

13 ‘‘(II) in the case of a new sanc14 tion, the extent to which the new sanc15 tion would permit foreign suppliers to

16 replace United States suppliers; and

17 ‘‘(v) regarding the reputation of

18 United States agricultural producers as re19 liable suppliers—

20 ‘‘(I) in the case of a current sanc21 tion, whether removing the sanction

22 would improve the reputation of

23 United States producers as reliable

24 suppliers of agricultural commodities

25 in general, and of specific agricultural
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1 commodities identified by the Sec2 retary; and

3 ‘‘(II) in the case of a new sanc4 tion, the likely effect of the proposed

5 sanction on the reputation of United

6 States producers as reliable suppliers

7 of agricultural commodities in general,

8 and of specific agricultural commod9 ities identified by the Secretary.

10 ‘‘(e) CONGRESSIONAL PRIORITY PROCEDURES.—

11 ‘‘(1) JOINT RESOLUTION.—In this subsection, the

12 term ‘joint resolution’ means only a joint resolution

13 introduced within 10 session days of Congress after

14 the date on which the report of the President under

15 subsection (d) is received by Congress, the matter

16 after the resolving clause of which is as follows: ‘That

17 Congress disapproves the report of the President pur18 suant to section 418(d) of the Agricultural Trade Act

19 of 1978, transmitted on lllllll.’, with the

20 blank completed with the appropriate date.

21 ‘‘(2) REFERRAL OF REPORT.—The report de22 scribed in subsection (d) shall be referred to the ap23 propriate committee or committees of the House of

24 Representatives and to the appropriate committee or

25 committees of the Senate.
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1 ‘‘(3) REFERRAL OF JOINT RESOLUTION.—

2 ‘‘(A) IN GENERAL.—A joint resolution shall

3 be referred to the committees in each House of

4 Congress with jurisdiction.

5 ‘‘(B) REPORTING DATE.—A joint resolution

6 referred to in subparagraph (A) may not be re7 ported before the eighth session day of Congress

8 after the introduction of the joint resolution.

9 ‘‘(4) DISCHARGE OF COMMITTEE.—If the com10 mittee to which is referred a joint resolution has not

11 reported the joint resolution (or an identical joint res12 olution) at the end of 30 session days of Congress

13 after the date of introduction of the joint resolution—

14 ‘‘(A) the committee shall be discharged from

15 further consideration of the joint resolution; and

16 ‘‘(B) the joint resolution shall be placed on

17 the appropriate calendar of the House concerned.

18 ‘‘(5) FLOOR CONSIDERATION.—

19 ‘‘(A) MOTION TO PROCEED.—

20 ‘‘(i) IN GENERAL.—When the com21 mittee to which a joint resolution is referred

22 has reported, or when a committee is dis23 charged under paragraph (4) from further

24 consideration of, a joint resolution—
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1 ‘‘(I) it shall be at any time there2 after in order (even though a previous

3 motion to the same effect has been dis4 agreed to) for any member of the

5 House concerned to move to proceed to

6 the consideration of the joint resolu7 tion; and

8 ‘‘(II) all points of order against

9 the joint resolution (and against con10 sideration of the joint resolution) are

11 waived.

12 ‘‘(ii) PRIVILEGE.—The motion to pro13 ceed to the consideration of the joint

14 resolution—

15 ‘‘(I) shall be highly privileged in

16 the House of Representatives and priv17 ileged in the Senate; and

18 ‘‘(II) shall not be debatable.

19 ‘‘(iii) AMENDMENTS AND MOTIONS NOT

20 IN ORDER.—The motion to proceed to the

21 consideration of the joint resolution shall

22 not be subject to—

23 ‘‘(I) amendment;

24 ‘‘(II) a motion to postpone; or
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1 ‘‘(III) a motion to proceed to the

2 consideration of other business.

3 ‘‘(iv) MOTION TO RECONSIDER NOT IN

4 ORDER.—A motion to reconsider the vote by

5 which the motion is agreed to or disagreed

6 to shall not be in order.

7 ‘‘(v) BUSINESS UNTIL DISPOSITION.—

8 If a motion to proceed to the consideration

9 of the joint resolution is agreed to, the joint

10 resolution shall remain the unfinished busi11 ness of the House concerned until disposed

12 of.

13 ‘‘(B) LIMITATIONS ON DEBATE.—

14 ‘‘(i) IN GENERAL.—Debate on the joint

15 resolution, and on all debatable motions

16 and appeals in connection with the joint

17 resolution, shall be limited to not more than

18 10 hours, which shall be divided equally be19 tween those favoring and those opposing the

20 joint resolution.

21 ‘‘(ii) FURTHER DEBATE LIMITA22 TIONS.—A motion to limit debate shall be

23 in order and shall not be debatable.

24 ‘‘(iii) AMENDMENTS AND MOTIONS NOT

25 IN ORDER.—An amendment to, a motion to
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1 postpone, a motion to proceed to the consid2 eration of other business, a motion to re3 commit the joint resolution, or a motion to

4 reconsider the vote by which the joint reso5 lution is agreed to or disagreed to shall not

6 be in order.

7 ‘‘(C) VOTE ON FINAL PASSAGE.—Imme8 diately following the conclusion of the debate on

9 a joint resolution, and a single quorum call at

10 the conclusion of the debate if requested in ac11 cordance with the rules of the House concerned,

12 the vote on final passage of the joint resolution

13 shall occur.

14 ‘‘(D) RULINGS OF THE CHAIR ON PROCE15 DURE.—An appeal from a decision of the Chair

16 relating to the application of the rules of the

17 Senate or House of Representatives, as the case

18 may be, to the procedure relating to a joint reso19 lution shall be decided without debate.

20 ‘‘(6) COORDINATION WITH ACTION BY OTHER

21 HOUSE.—If, before the passage by 1 House of a joint

22 resolution of that House, that House receives from the

23 other House a joint resolution, the following proce24 dures shall apply:
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1 ‘‘(A) NO COMMITTEE REFERRAL.—The joint

2 resolution of the other House shall not be referred

3 to a committee.

4 ‘‘(B) FLOOR PROCEDURE.—With respect to

5 a joint resolution of the House receiving the joint

6 resolution—

7 ‘‘(i) the procedure in that House shall

8 be the same as if no joint resolution had

9 been received from the other House; but

10 ‘‘(ii) the vote on final passage shall be

11 on the joint resolution of the other House.

12 ‘‘(C) DISPOSITION OF JOINT RESOLUTIONS

13 OF RECEIVING HOUSE.—On disposition of the

14 joint resolution received from the other House, it

15 shall no longer be in order to consider the joint

16 resolution originated in the receiving House.

17 ‘‘(7) PROCEDURES AFTER ACTION BY BOTH THE

18 HOUSE AND SENATE.—If a House receives a joint res19 olution from the other House after the receiving

20 House has disposed of a joint resolution originated in

21 that House, the action of the receiving House with re22 gard to the disposition of the joint resolution origi23 nated in that House shall be deemed to be the action

24 of the receiving House with regard to the joint resolu25 tion originated in the other House.
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1 ‘‘(8) RULEMAKING POWER.—This subsection is

2 enacted by Congress—

3 ‘‘(A) as an exercise of the rulemaking power

4 of the Senate and House of Representatives, re5 spectively, and as such this subsection—

6 ‘‘(i) is deemed to be a part of the rules

7 of each House, respectively, but applicable

8 only with respect to the procedure to be fol9 lowed in that House in the case of a joint

10 resolution; and

11 ‘‘(ii) supersedes other rules only to the

12 extent that this subsection is inconsistent

13 with those rules; and

14 ‘‘(B) with full recognition of the constitu15 tional right of either House to change the rules

16 (so far as the rules relate to the procedure of that

17 House) at any time, in the same manner and to

18 the same extent as in the case of any other rule

19 of that House.’’.

20 SEC. 4. OBJECTIVES FOR AGRICULTURAL NEGOTIATIONS.

21 It is the sense of Congress that the principal agricul22 tural trade negotiating objectives of the United States for

23 future multilateral and bilateral trade negotiations (includ24 ing negotiations involving the World Trade Organization)

25 should be to achieve, on an expedited basis and to the max-
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1 imum extent practicable, more open and fair conditions for

2 trade in agricultural commodities by—

3 (1) developing, strengthening, and clarifying

4 rules for trade in agricultural commodities, including

5 eliminating or reducing restrictive or trade-distorting

6 import and export practices, including—

7 (A) enhancing the operation and effective8 ness of the relevant provisions of the Uruguay

9 Round Agreements designed to define, deter, and

10 discourage the persistent use of unfair trade

11 practices; and

12 (B) enforcing and strengthening rules of the

13 World Trade Organization regarding—

14 (i) trade-distorting practices of state

15 trading enterprises and similar public and

16 private trading enterprises; and

17 (ii) the acts, practices, or policies of a

18 foreign government that unreasonably—

19 (I) require that substantial direct

20 investment in the foreign country be

21 made as a condition for carrying on

22 business in the foreign country;

23 (II) require that intellectual prop24 erty be licensed to the foreign country
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1 or to any firm of the foreign country;

2 or

3 (III) delay or preclude implemen4 tation of a report of a dispute panel of

5 the World Trade Organization;

6 (2) increasing the export of United States agri7 cultural commodities by eliminating barriers to trade

8 (including transparent and nontransparent barriers);

9 (3) eliminating other specific constraints to fair

10 trade (such as export subsidies, quotas, and other

11 nontariff import barriers and more open market ac12 cess) in foreign markets for United States agricul13 tural commodities;

14 (4) developing, strengthening, and clarifying

15 rules that address practices that unfairly limit

16 United States market access opportunities or distort

17 markets for United States agricultural commodities to

18 the detriment of the United States, including—

19 (A) unfair or trade-distorting activities of

20 state trading enterprises, and similar public and

21 private trading enterprises, that result in inad22 equate price transparency;

23 (B) commercial requirements, or restrictions

24 not based on scientific principles and not main-
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1 tained with sufficient scientific evidence, affect2 ing new technologies;

3 (C) unjustified sanitary or phytosanitary

4 restrictions; and

5 (D) restrictive rules in the establishment

6 and administration of tariff-rate quotas;

7 (5) ensuring that there are reliable suppliers of

8 agricultural commodities in international commerce

9 by encouraging countries to treat foreign buyers no

10 less favorably than domestic buyers of the commodity

11 or product involved;

12 (6) eliminating nontariff trade barriers for meet13 ing the food needs of an increasing world population

14 through the use of new technologies by—

15 (A) ensuring market access to United States

16 agricultural commodities derived from bio17 technology that is based on scientific principles

18 and maintained with sufficient scientific evi19 dence;

20 (B) opposing the establishment of protec21 tionist trade measures disguised as health stand22 ards; and

23 (C) protesting continual delays by other

24 countries in their approval processes; and
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1 (7) ensuring that foreign market access to United

2 States agricultural commodities produced using tra3 ditional agricultural practices, organic farming, sus4 tainable agriculture, or other agricultural practices is

5 not denied for reasons that are inconsistent with the

6 rules of the World Trade Organization.

7 SEC. 5. SALE OR BARTER OF FOOD ASSISTANCE.

8 It is the sense of Congress that the amendments to sec9 tion 203 of the Agricultural Trade Development and Assist10 ance Act of 1954 (7 U.S.C. 1723) made by section 208 of

11 the Federal Agriculture Improvement and Reform Act of

12 1996 (Public Law 104–127; 110 Stat. 954) were intended

13 to allow the sale or barter of United States agricultural

14 commodities in connection with United States food assist15 ance only within the recipient country or countries adjacent

16 to the recipient country, unless—

17 (1) the sale or barter within the recipient coun18 try or adjacent countries is not practicable; and

19 (2) the sale or barter within countries other than

20 the recipient country or adjacent countries will not

21 disrupt commercial markets for the agricultural com22 modity involved.
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1 SEC. 6. SENSE OF CONGRESS REGARDING RELIEF FROM

2 UNFAIR TRADE PRACTICES AFFECTING

3 UNITED STATES AGRICULTURAL COMMOD4 ITIES.

5 (a) FINDINGS.—Congress finds that—

6 (1) often dispute settlement proceedings to resolve

7 unfair trade practices of foreign countries that re8 strict market access of United States agricultural

9 commodities are inadequate, time consuming, and

10 cumbersome; and

11 (2) practices that unfairly limit market access

12 opportunities for United States agricultural commod13 ities through export subsidies and import barriers

14 include—

15 (A) unfair or trade-distorting activities of

16 state trading enterprises, and similar public and

17 private trading enterprises, that result in inad18 equate price transparency;

19 (B) unjustified restrictions or commercial

20 requirements affecting new technologies, includ21 ing biotechnology, that are not scientifically de22 fensible;

23 (C) unjustified sanitary or phytosanitary

24 restrictions;

25 (D) restrictive rules for the establishment

26 and administration of tariff-rate quotas;
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1 (E) requirements that substantial direct in2 vestment in the foreign country be made as a

3 condition for carrying on business in the foreign

4 country; and

5 (F) requirements that intellectual property

6 be licensed to the foreign country or to any firm

7 of the foreign country.

8 (b) SENSE OF CONGRESS.—It is the sense of Congress

9 that the Secretary of Agriculture should aggressively use the

10 authorities granted to the Secretary under section 302 of

11 the Agricultural Trade Act of 1978 (7 U.S.C. 5652), which

12 provides the Secretary with the authority to use programs

13 of the Department of Agriculture for the agricultural com14 modity involved when there is undue delay in a dispute

15 resolution proceeding of an international trade agreement

16 (such as an agreement administered by the World Trade

17 Organization).

18 SEC. 7. MICRONUTRIENT FORTIFICATION PILOT PROGRAM.

19 Section 415 of the Agricultural Trade Development

20 and Assistance Act of 1954 (7 U.S.C. 1736g–2) is repealed.

21 SEC. 8. TECHNICAL CORRECTIONS.

22 (a) ADMINISTRATIVE PROVISIONS.—Section 216 of the

23 Federal Agriculture Improvement and Reform Act of 1996

24 (Public Law 104–127; 110 Stat. 957) is amended—
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1 (1) in paragraph (2), by striking ‘‘subsection

2 (c)’’ and inserting ‘‘subsection (b)’’;

3 (2) in paragraph (3), by striking ‘‘subsection

4 (d)’’ and inserting ‘‘subsection (c)’’;

5 (3) in paragraph (4), by striking ‘‘subsection

6 (g)(2)’’ and inserting ‘‘subsection (f)(2)’’; and

7 (4) in paragraph (5), by striking ‘‘subsection

8 (h)’’ and inserting ‘‘subsection (g)’’.

9 (b) EMERGING MARKETS.—Section 1542(d)(1)(A)(i) of

10 the Food, Agriculture, Conservation, and Trade Act of 1990

11 (Public Law 101–624; 7 U.S.C. 5622 note) is amended by

12 striking ‘‘such democracies’’ and inserting ‘‘the markets’’.

13 (c) TRADE COMPENSATION AND ASSISTANCE PRO14 GRAMS.—Section 417(a) of the Agricultural Trade Act of

15 1978 (7 U.S.C. 5677(a)) is amended by inserting ‘‘of an

16 agricultural commodity’’ after ‘‘causes exports’’.

17 (d) EFFECTIVE DATE.—The amendments made by this

18 section take effect on April 4, 1996.

Amend the title so as to read: ‘‘A bill to amend the

Agricultural Trade Act of 1978 to exempt agricultural

commodities, livestock, and value-added products from

unilateral agricultural sanctions, to prepare for future bilateral and multilateral trade negotiations affecting

United States agriculture, and for other purposes.’’.