II

106TH CONGRESS

1ST SESSION S. 757

To provide a framework for consideration by the legislative and executive

branches of unilateral economic sanctions in order to ensure coordination

of United States policy with respect to trade, security, and human

rights.

IN THE SENATE OF THE UNITED STATES

MARCH 25, 1999

Mr. LUGAR (for himself, Mr. KERREY, Mr. HAGEL, Mr. THOMAS, Mr. SMITH

of Oregon, Mr. GRAMS, Mr. ROBB, Mrs. FEINSTEIN, Mr. BINGAMAN, Mr.

MURKOWSKI, Mr. COCHRAN, Mr. DOMENICI, Mr. LOTT, Mr. SANTORUM,

Mr. BURNS, Mr. ALLARD, Mr. JOHNSON, Mrs. HUTCHISON, Mr.

CHAFEE, Mr. GORTON, Mr. BREAUX, Mrs. MURRAY, Mr. DORGAN, Mr.

CRAPO, Mr. BAUCUS, Mrs. LINCOLN, Mr. CONRAD, Mr. BOND, and Mr.

ROBERTS) introduced the following bill; which was read twice and referred to the Committee on Foreign Relations

A BILL

To provide a framework for consideration by the legislative

and executive branches of unilateral economic sanctions

in order to ensure coordination of United States policy

with respect to trade, security, and human rights.

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 ‘‘Sanctions Policy Re5 form Act’’.
2

•S 757 IS

1 SEC. 2. PURPOSE.

2 It is the purpose of this Act to establish an effective

3 framework for consideration by the legislative and execu4 tive branches of unilateral economic sanctions in order to

5 ensure coordination of United States policy with respect

6 to trade, security, and human rights.

7 SEC. 3. STATEMENT OF POLICY.

8 It is the policy of the United States—

9 (1) to pursue United States interests through

10 vigorous and effective diplomatic, political, commer11 cial, charitable, educational, cultural, and strategic

12 engagement with other countries, while recognizing

13 that the national security interests of the United

14 States may sometimes require the imposition of eco15 nomic sanctions on other countries;

16 (2) to foster multilateral cooperation on vital

17 matters of United States foreign policy, including

18 promoting human rights and democracy, combating

19 international terrorism, proliferation of weapons of

20 mass destruction, and international narcotics traf21 ficking, and ensuring adequate environmental pro22 tection;

23 (3) to promote United States economic growth

24 and job creation by expanding exports of goods,

25 services, and agricultural commodities, and by en-
3

•S 757 IS

1 couraging investment that supports the sale abroad

2 of products and services of the United States;

3 (4) to maintain the reputation of United States

4 businesses and farmers as reliable suppliers to inter5 national customers of quality products and services,

6 including United States manufactures, technology

7 products, financial services, and agricultural com8 modities;

9 (5) to avoid the use of restrictions on exports

10 of agricultural commodities as a foreign policy weap11 on;

12 (6) to oppose policies of other countries de13 signed to discourage economic interaction with coun14 tries friendly to the United States or with any

15 United States national, and to avoid use of such

16 policies as instruments of United States foreign pol17 icy; and

18 (7) when economic sanctions are necessary—

19 (A) to target them as narrowly as possible

20 on those foreign governments, entities, and offi21 cials that are responsible for the conduct being

22 targeted, thereby minimizing unnecessary or

23 disproportionate harm to individuals who are

24 not responsible for such conduct; and
4

•S 757 IS

1 (B) to the extent feasible, to avoid any ad2 verse impact of economic sanctions on the hu3 manitarian activities of United States and for4 eign nongovernmental organizations in a coun5 try against which sanctions are imposed.

6 SEC. 4. DEFINITIONS.

7 As used in this Act:

8 (1) UNILATERAL ECONOMIC SANCTION.—

9 (A) IN GENERAL.—The term ‘‘unilateral

10 economic sanction’’ means any prohibition, re11 striction, or condition on economic activity, in12 cluding economic assistance, with respect to a

13 foreign country or foreign entity that is im14 posed by the United States for reasons of for15 eign policy or national security, including any of

16 the measures described in subparagraph (B),

17 except in a case in which the United States im18 poses the measure pursuant to a multilateral

19 regime and the other members of that regime

20 have agreed to impose substantially equivalent

21 measures.

22 (B) PARTICULAR MEASURES.—The meas23 ures referred to in subparagraph (A) are the

24 following:
5

•S 757 IS

1 (i) The suspension of, or any restric2 tion or prohibition on, exports or imports

3 of any product, technology, or service to or

4 from a foreign country or entity.

5 (ii) The suspension of, or any restric6 tion or prohibition on, financial trans7 actions with a foreign country or entity.

8 (iii) The suspension of, or any restric9 tion or prohibition on, direct or indirect in10 vestment in or from a foreign country or

11 entity.

12 (iv) The imposition of increased tar13 iffs on, or other restrictions on imports of,

14 products of a foreign country or entity, in15 cluding the denial, revocation, or condi16 tioning of nondiscriminatory (most-fa17 vored-nation) trade treatment.

18 (v) The suspension of, or any restric19 tion or prohibition on—

20 (I) the authority of the Export21 Import Bank of the United States to

22 give approval to the issuance of any

23 guarantee, insurance, or extension of

24 credit in connection with the export of
6

•S 757 IS

1 goods or services to a foreign country

2 or entity;

3 (II) the authority of the Trade

4 and Development Agency to provide

5 assistance in connection with projects

6 in a foreign country or in which a

7 particular foreign entity participates;

8 or

9 (III) the authority of the Over10 seas Private Investment Corporation

11 to provide insurance, reinsurance, or

12 financing or conduct other activities

13 in connection with projects in a for14 eign country or in which a particular

15 foreign entity participates.

16 (vi) A requirement that the United

17 States representative to an international fi18 nancial institution vote against any loan or

19 other utilization of funds to, for, or in a

20 foreign country or particular foreign entity.

21 (vii) A measure imposing any restric22 tion or condition on economic activity of

23 any foreign government or entity on the

24 ground that such government or entity

25 does business in or with a foreign country.
7

•S 757 IS

1 (viii) A measure imposing any restric2 tion or condition on economic activity of

3 any person that is a national of a foreign

4 country, or on any government or other en5 tity of a foreign country, on the ground

6 that the government of that country has

7 not taken measures in cooperation with, or

8 similar to, sanctions imposed by the

9 United States on a third country.

10 (ix) The suspension of, or any restric11 tion or prohibition on, travel rights or air

12 transportation to or from a foreign coun13 try.

14 (x) Any restriction on the filing or

15 maintenance in a foreign country of any

16 proprietary interest in intellectual property

17 rights (including patents, copyrights, and

18 trademarks), including payment of patent

19 maintenance fees.

20 (C) MULTILATERAL REGIME.—As used in

21 this paragraph, the term ‘‘multilateral regime’’

22 means an agreement, arrangement, or obliga23 tion under which the United States cooperates

24 with other countries in restricting commerce for
8

•S 757 IS

1 reasons of foreign policy or national security,

2 including—

3 (i) obligations under resolutions of the

4 United Nations;

5 (ii) nonproliferation and export con6 trol arrangements, such as the Australia

7 Group, the Nuclear Supplier’s Group, the

8 Missile Technology Control Regime, and

9 the Wassenaar Arrangement;

10 (iii) treaty obligations, such as under

11 the Chemical Weapons Convention, the

12 Treaty on the Non-Proliferation of Nuclear

13 Weapons, and the Biological Weapons Con14 vention; and

15 (iv) agreements concerning protection

16 of the environment, such as the Inter17 national Convention for the Conservation

18 of Atlantic Tunas, the Declaration of Pan19 ama referred to in section 2(a)(1) of the

20 International Dolphin Conservation Act

21 (16 U.S.C. 1361 note), the Convention on

22 International Trade in Endangered Spe23 cies, the Montreal Protocol on Substances

24 that Deplete the Ozone Layer, and the

25 Basel Convention on the Control of
9

•S 757 IS

1 Transboundary Movements of Hazardous

2 Wastes.

3 (D) ECONOMIC ASSISTANCE.—The term

4 ‘‘economic assistance’’ means—

5 (i) any assistance under part I or

6 chapter 4 of part II of the Foreign Assist7 ance Act of 1961 (including programs

8 under title IV of chapter 2 of part I of

9 that Act, relating to the Overseas Private

10 Investment Corporation), other than—

11 (I) assistance under chapter 8 of

12 part I of that Act,

13 (II) disaster relief assistance, in14 cluding any assistance under chapter

15 9 of part I of that Act,

16 (III) assistance which involves

17 the provision of food (including mone18 tization of food) or medicine, or

19 (IV) assistance for refugees; and

20 (ii) the provision of agricultural com21 modities, other than food, under the Agri22 cultural Trade Development and Assist23 ance Act of 1954.

24 (E) FINANCIAL TRANSACTION.—As used in

25 this paragraph, the term ‘‘financial trans-
10

•S 757 IS

1 action’’ has the meaning given that term in sec2 tion 1956(c)(4) of title 18, United States Code.

3 (F) INVESTMENT.—As used in this para4 graph, the term ‘‘investment’’ means any con5 tribution or commitment of funds, commodities,

6 services, patents, or other forms of intellectual

7 property, processes, or techniques, including—

8 (i) a loan or loans;

9 (ii) the purchase of a share of owner10 ship;

11 (iii) participation in royalties, earn12 ings, or profits; and

13 (iv) the furnishing or commodities or

14 services pursuant to a lease or other con15 tract.

16 (G) EXCLUSIONS.—The term ‘‘unilateral

17 economic sanction’’ does not include—

18 (i) any measure imposed to remedy

19 unfair trade practices or to enforce United

20 States rights under a trade agreement, in21 cluding under section 337 of the Tariff Act

22 of 1930 (19 U.S.C. 1337), title VII of that

23 Act (19 U.S.C. 1671 et seq.), title III of

24 the Trade Act of 1974 (19 U.S.C. 2411 et

25 seq.), sections 1374 and 1377 of the Omni-
11

•S 757 IS

1 bus Trade and Competitiveness Act of

2 1988 (19 U.S.C. 3103 and 3106), and sec3 tion 3 of the Act of March 3, 1933 (41

4 U.S.C. 10b–1);

5 (ii) any measure imposed to remedy

6 market disruption or to respond to injury

7 to a domestic industry for which increased

8 imports are a substantial cause or threat

9 thereof, including remedies under sections

10 201 and 406 of the Trade Act of 1974 (19

11 U.S.C. 2251 and 2436), and textile import

12 restrictions (including those imposed under

13 section 204 of the Agricultural Act of 1956

14 (7 U.S.C. 1784));

15 (iii) any action taken under title IV of

16 the Trade Act of 1974 (19 U.S.C. 2431 et

17 seq.), including the enactment of a joint

18 resolution under section 402(d)(2) of that

19 Act;

20 (iv) any measure imposed to restrict

21 imports of agricultural commodities to pro22 tect food safety or to ensure the orderly

23 marketing of commodities in the United

24 States, including actions taken under sec-
12

•S 757 IS

1 tion 22 of the Agricultural Adjustment Act

2 (7 U.S.C. 624);

3 (v) any measure imposed to restrict

4 imports of any other products in order to

5 protect domestic health or safety;

6 (vi) any measure authorized by, or im7 posed under, a multilateral or bilateral

8 trade agreement to which the United

9 States is a signatory, including the Uru10 guay Round Agreements, the North Amer11 ican Free Trade Agreement, the United

12 States-Israel Free Trade Agreement, and

13 the United States-Canada Free Trade

14 Agreement; and

15 (vii) any prohibition or restriction on

16 the sale, export, lease, or other transfer of

17 any defense article, defense service, or de18 sign and construction service under the

19 Arms Export Control Act, or on any fi20 nancing provided under that Act.

21 (2) NATIONAL EMERGENCY.—The term ‘‘na22 tional emergency’’ means any unusual or extraor23 dinary threat, which has its source in whole or sub24 stantial part outside the United States, to the na-
13

•S 757 IS

1 tional security, foreign policy, or economy of the

2 United States.

3 (3) AGRICULTURAL COMMODITY.—The term

4 ‘‘agricultural commodity’’ has the meaning given

5 that term in section 102(1) of the Agricultural

6 Trade Act of 1978 (7 U.S.C. 5602(1)).

7 (4) APPROPRIATE CONGRESSIONAL COMMIT8 TEES.—The term ‘‘appropriate congressional com9 mittees’’ means the Committee on Agriculture, the

10 Committee on International Relations, the Com11 mittee on Ways and Means, and the Committee on

12 Banking and Financial Services of the House of

13 Representatives, and the Committee on Agriculture,

14 Nutrition, and Forestry, the Committee on Finance,

15 and the Committee on Foreign Relations of the Sen16 ate.

17 (5) CONTRACT SANCTITY.—The term ‘‘contract

18 sanctity’’, with respect to a unilateral economic

19 sanction, refers to the inapplicability of the sanction

20 to—

21 (A) a contract or agreement entered into

22 before the sanction is imposed, or to a valid ex23 port license or other authorization to export;

24 and
14

•S 757 IS

1 (B) actions taken to enforce the right to

2 maintain intellectual property rights, in the for3 eign country against which the sanction is im4 posed, which existed before the imposition of

5 the sanction.

6 (6) UNILATERAL ECONOMIC SANCTION LEGIS7 LATION.—The term ‘‘unilateral economic sanction

8 legislation’’ means a bill or joint resolution that im9 poses, or authorizes the imposition of, any unilateral

10 economic sanction.

11 SEC. 5. GUIDELINES FOR UNILATERAL ECONOMIC SANC12 TIONS LEGISLATION.

13 It is the sense of Congress that any unilateral eco14 nomic sanction legislation that is introduced in or reported

15 to a House of Congress on or after the date of enactment

16 of this Act should—

17 (1) state the foreign policy or national security

18 objective or objectives of the United States that the

19 economic sanction is intended to achieve;

20 (2) provide that the economic sanction termi21 nate 2 years after it is imposed, unless specifically

22 reauthorized by Congress;

23 (3) provide contract sanctity, except that con24 tract sanctity shall not be required in any case—
15

•S 757 IS

1 (A) in which execution of the contract is

2 contrary to law;

3 (B) in which the contract involves assets

4 that will be frozen as a consequence of the pro5 posed sanction; or

6 (C) in which the contract provides for the

7 supply of goods or services directly to a specific

8 person, government agency, or military unit

9 that is expressly named as a target of the pro10 posed sanction;

11 (4) provide authority for the President both to

12 adjust the timing and scope of the sanction and to

13 waive the sanction, if the President determines it is

14 in the national interest to do so;

15 (5)(A) target the sanction as narrowly as pos16 sible on foreign governments, entities, and officials

17 that are responsible for the conduct being targeted;

18 (B) not include restrictions on the provision of

19 medicine, medical equipment, or food; and

20 (C) seek to minimize any adverse impact on the

21 humanitarian activities of United States and foreign

22 nongovernmental organizations in any country

23 against which the sanction may be imposed;

24 (6) provide, to the extent that the Secretary of

25 Agriculture finds, that—
16

•S 757 IS

1 (A) the proposed sanction is likely to re2 strict exports of any agricultural commodity or

3 is likely to result in retaliation against exports

4 of any agricultural commodity from the United

5 States; and

6 (B) the sanction is proposed to be im7 posed, or is likely to be imposed, on a country

8 or countries that constituted, in the preceding

9 calendar year, the market for more than 3 per10 cent of all export sales from the United States

11 of an agricultural commodity; and

12 (7) provide that the Secretary of Agriculture

13 expand agricultural export assistance under United

14 States market development, food assistance, or ex15 port promotion programs to offset the likely damage

16 to incomes of producers of the affected agricultural

17 commodity, to the maximum extent permitted by law

18 and by the obligations of the United States under

19 the Agreement on Agriculture referred to in section

20 101(d)(2) of the Uruguay Round Agreements Act

21 (19 U.S.C. 3511(d)(2)).

22 SEC. 6. REQUIREMENTS FOR UNILATERAL ECONOMIC

23 SANCTIONS LEGISLATION.

24 (a) PUBLIC COMMENT.—Not later than 15 days prior

25 to the consideration by the committee of primary jurisdic-
17

•S 757 IS

1 tion of any unilateral economic sanction legislation, the

2 chairman of the committee shall cause to be printed in

3 the Congressional Record a notice that provides an oppor4 tunity for interested members of the public to submit com5 ments to the committee on the proposed sanction.

6 (b) COMMITTEE REPORTS.—In the case of any uni7 lateral economic sanction legislation that is reported by

8 a committee of the House of Representatives or the Sen9 ate, the committee report accompanying the legislation

10 shall contain a statement of whether the legislation meets

11 all the guidelines specified in paragraphs (1) through (6)

12 of section 5 and, if the legislation does not, an explanation

13 of why it does not. The report shall also include a specific

14 statement of whether the legislation includes any restric15 tions on the provision of medicine, medical equipment, or

16 food.

17 (c) FLOOR CONSIDERATION IN THE HOUSE OF REP18 RESENTATIVES AND SENATE.—

19 (1) FLOOR CONSIDERATION IN THE HOUSE OF

20 REPRESENTATIVES.—A motion in the House of Rep21 resentatives to proceed to the consideration of any

22 unilateral economic sanctions legislation shall not be

23 in order unless the House has received in advance

24 the appropriate report or reports under subsection

25 (d).
18

•S 757 IS

1 (2) CONSIDERATION IN THE SENATE.—A mo2 tion in the Senate to proceed to the consideration of

3 any unilateral economic sanctions legislation shall

4 not be in order unless the Senate has received in ad5 vance the appropriate report or reports under sub6 section (d).

7 (d) REPORTS.—

8 (1) REPORT BY THE PRESIDENT.—Not later

9 than 30 days after a committee of the House of

10 Representatives or the Senate reports any unilateral

11 economic sanction legislation or the House of Rep12 resentatives or the Senate receives such legislation

13 from the other House of Congress, the President

14 shall submit to the House receiving the legislation a

15 report containing—

16 (A) an assessment of—

17 (i) the likelihood that the proposed

18 unilateral economic sanction will achieve

19 its stated objective within a reasonable pe20 riod of time; and

21 (ii) the impact of the proposed unilat22 eral economic sanction on—

23 (I) humanitarian conditions, in24 cluding the impact on conditions in

25 any specific countries on which the
19

•S 757 IS

1 sanction is proposed to be or may be

2 imposed;

3 (II) humanitarian activities of

4 United States and foreign nongovern5 mental organizations;

6 (III) relations with United States

7 allies;

8 (IV) other United States national

9 security and foreign policy interests;

10 and

11 (V) countries and entities other

12 than those on which the sanction is

13 proposed to be or may be imposed;

14 (B) a description and assessment of—

15 (i) diplomatic and other steps the

16 United States has taken to accomplish the

17 intended objectives of the unilateral sanc18 tion legislation;

19 (ii) the likelihood of multilateral adop20 tion of comparable measures;

21 (iii) comparable measures undertaken

22 by other countries;

23 (iv) alternative measures to promote

24 the same objectives, and an assessment of

25 their potential effectiveness;
20

•S 757 IS

1 (v) any obligations of the United

2 States under international treaties or trade

3 agreements with which the proposed sanc4 tion may conflict;

5 (vi) the likelihood that the proposed

6 sanction will lead to retaliation against

7 United States interests, including agricul8 tural interests; and

9 (vii) whether the achievement of the

10 objectives of the proposed sanction out11 weighs any likely costs to United States

12 foreign policy, national security, economic,

13 and humanitarian interests, including any

14 potential harm to United States business,

15 agriculture, and consumers, and any poten16 tial harm to the international reputation of

17 the United States as a reliable supplier of

18 products, technology, agricultural commod19 ities, and services.

20 (2) REPORT BY THE SECRETARY OF AGRI21 CULTURE.—Not later than 30 days after a com22 mittee of the House of Representatives or the Senate

23 reports any unilateral economic sanction legislation

24 affecting the export of agricultural commodities from

25 the United States or the House of Representatives
21

•S 757 IS

1 or the Senate receives such legislation from the

2 other House of Congress, the Secretary of Agri3 culture shall submit to the House receiving the legis4 lation a report containing an assessment of—

5 (A) the extent to which any country or

6 countries proposed to be sanctioned or likely to

7 be sanctioned are markets that accounted for,

8 in the preceding calendar year, more than 3

9 percent of all export sales from the United

10 States of any agricultural commodity;

11 (B) the likelihood that exports of agricul12 tural commodities from the United States will

13 be affected by the proposed sanction or by re14 taliation by any country proposed to be sanc15 tioned or likely to be sanctioned, and specific

16 commodities which are most likely to be af17 fected;

18 (C) the likely effect on incomes of pro19 ducers of the specific commodities identified by

20 the Secretary;

21 (D) the extent to which the proposed sanc22 tion would permit foreign suppliers to replace

23 United States suppliers; and

24 (E) the likely effect of the proposed sanc25 tion on the reputation of United States farmers
22

•S 757 IS

1 as reliable suppliers of agricultural commodities

2 in general, and of the specific commodities iden3 tified by the Secretary.

4 (3) REPORT BY THE CONGRESSIONAL BUDGET

5 OFFICE.—Any bill or joint resolution that imposes a

6 unilateral economic sanction shall be treated as in7 cluding a Federal private sector mandate for pur8 poses of part B of title IV of the Congressional

9 Budget and Impoundment Control Act of 1974 (2

10 U.S.C. 658 et seq.) and the Congressional Budget

11 Office shall report accordingly. The report shall in12 clude an assessment of—

13 (A) the likely short-term and long-term

14 costs of the proposed sanction to the United

15 States economy, including the potential impact

16 on United States trade performance, employ17 ment, and growth;

18 (B) the impact the proposed sanction will

19 have on the international reputation of the

20 United States as a reliable supplier of products,

21 agricultural commodities, technology, and serv22 ices; and

23 (C) the impact the proposed sanction will

24 have on the economic well-being and inter25 national competitive position of United States
23

•S 757 IS

1 industries, firms, workers, farmers, and commu2 nities.

3 (e) RULES OF THE HOUSE OF REPRESENTATIVES

4 AND SENATE.—This section is enacted by Congress—

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

6 the House of Representatives and the Senate, re7 spectively, and as such these rules are deemed a part

8 of the rules of each House, respectively, and they su9 persede other rules only to the extent that they are

10 inconsistent therewith; and

11 (2) with full recognition of the constitutional

12 right of either House to change the rules (so far as

13 relating to the procedure of that House) at any time,

14 in the same manner and to the same extent as in

15 the case of any other rule of that House.

16 SEC. 7. REQUIREMENTS FOR EXECUTIVE ACTION.

17 (a) NOTICE.—

18 (1) IN GENERAL.—

19 (A) NOTICE OF INTENT TO IMPOSE SANC20 TION.—Notwithstanding any other provisions of

21 law, the President shall publish notice in the

22 Federal Register at least 45 days in advance of

23 the imposition of any new unilateral economic

24 sanction under any provision of law with re25 spect to a foreign country or foreign entity, of
24

•S 757 IS

1 the President’s intention to implement such

2 sanction. The purpose of such notice shall be

3 to allow the formulation of an effective sanction

4 that advances United States national security

5 and economic interests, and to provide an op6 portunity for negotiations to achieve the objec7 tives specified in the law authorizing imposition

8 of a unilateral economic sanction.

9 (B) WAIVER OF ADVANCE NOTICE RE10 QUIREMENT.—The President may waive the

11 provisions of subparagraph (A) in the case of

12 any new unilateral economic sanction that in13 volves freezing the assets of a foreign country

14 or entity (or in the case of any other sanction)

15 if the President determines that the national in16 terest would be jeopardized by the requirements

17 of this section.

18 (C) AUTHORITY TO NEGOTIATE.—Notwith19 standing any other provision of law, the Presi20 dent is authorized to negotiate with the foreign

21 government against which a unilateral economic

22 sanction is proposed to resolve the underlying

23 reasons for the sanction during the 45-day pe24 riod following the publication of notice in the

25 Federal Register.
25

•S 757 IS

1 (2) NEW UNILATERAL ECONOMIC SANCTION.—

2 For purposes of this section, the term ‘‘new unilat3 eral economic sanction’’ means a unilateral economic

4 sanction imposed pursuant to a law enacted after

5 the date of enactment of this Act or a sanction im6 posed after such date of enactment pursuant to the

7 International Emergency Economic Powers Act (50

8 U.S.C. 1701 et seq.).

9 (b) CONSULTATION.—

10 (1) IN GENERAL.—The President shall consult

11 with the appropriate congressional committees re12 garding a proposed new unilateral economic sanc13 tion, including consultations regarding efforts to

14 achieve or increase multilateral cooperation on the

15 issues or problems prompting the proposed sanction.

16 (2) CLASSIFIED CONSULTATIONS.—The con17 sultations described in paragraph (1) may be con18 ducted on a classified basis if disclosure would

19 threaten the national security of the United States.

20 (c) PUBLIC COMMENT.—The President shall publish

21 a notice in the Federal Register of the opportunity for in22 terested persons to submit comments on any proposed new

23 unilateral economic sanction.
26

•S 757 IS

1 (d) REQUIREMENTS FOR EXECUTIVE BRANCH SANC2 TIONS.—Any new unilateral economic sanction imposed by

3 the President—

4 (1) shall—

5 (A) include an assessment of whether—

6 (i) the sanction is likely to achieve a

7 specific United States foreign policy or na8 tional security objective within a reason9 able period of time, which shall be speci10 fied; and

11 (ii) the achievement of the objectives

12 of the sanction outweighs any costs to

13 United States national interests;

14 (B) provide contract sanctity, except that

15 contract sanctity shall not be required in any

16 case—

17 (i) in which execution of the contract

18 is contrary to law;

19 (ii) in which the contract involves as20 sets that will be frozen as a consequence of

21 the proposed sanction; or

22 (iii) in which the contract provides for

23 the supply of goods or services directly to

24 a specific person, government agency, or
27

•S 757 IS

1 military unit that is expressly named as a

2 target of the proposed sanction;

3 (C) terminate not later than 2 years after

4 the sanction is imposed, unless specifically ex5 tended by the President in accordance with this

6 section;

7 (D)(i) be targeted as narrowly as possible

8 on foreign governments, entities, and officials

9 that are responsible for the conduct being tar10 geted; and

11 (ii) seek to minimize any adverse impact

12 on the humanitarian activities of United States

13 and foreign nongovernmental organizations in a

14 country against which the sanction may be im15 posed; and

16 (E) not include any restriction on the ex17 port, financing, support, or provision of medi18 cine, medical equipment, medical supplies, food,

19 or other agricultural commodity (including fer20 tilizer), other than restrictions imposed in re21 sponse to national security threats, where mul22 tilateral sanctions are in place, or restrictions

23 involving a country where the United States is

24 engaged in armed conflict;
28

•S 757 IS

1 (2) should provide, to the extent that the Sec2 retary of Agriculture finds, that—

3 (A) a new unilateral economic sanction is

4 likely to restrict exports of any agricultural

5 commodity from the United States or is likely

6 to result in retaliation against exports of any

7 agricultural commodity from the United States;

8 and

9 (B) the sanction is proposed to be im10 posed, or is likely to be imposed, on a country

11 or countries that constituted, in the preceding

12 calendar year, the market for more than 3 per13 cent of all export sales from the United States

14 of an agricultural commodity; and

15 (3) should provide that the Secretary of Agri16 culture expand agricultural export assistance under

17 United States market development, food assistance,

18 and export promotion programs to offset the likely

19 damage to incomes of producers of the affected agri20 cultural commodity, to the maximum extent per21 mitted by law and by the obligations of the United

22 States under the Agreement on Agriculture referred

23 to in section 101(d)(2) of the Uruguay Round

24 Agreements Act (19 U.S.C. 3511(d)(2)).

25 (e) REPORT BY THE PRESIDENT.—
29

•S 757 IS

1 (1) IN GENERAL.—Prior to imposing any new

2 unilateral economic sanction, the President shall

3 provide a report to the appropriate congressional

4 committees on the proposed sanction. The report

5 shall include the report of the International Trade

6 Commission under subsection (g) (if timely sub7 mitted prior to the filing of the report). The report

8 may be provided on a classified basis if disclosure

9 would threaten the national security of the United

10 States. The President’s report shall contain the fol11 lowing:

12 (A) An explanation of the foreign policy or

13 national security objective or objectives intended

14 to be achieved through the proposed sanction.

15 (B) An assessment of—

16 (i) the likelihood that the proposed

17 new unilateral economic sanction will

18 achieve its stated objectives within the

19 stated period of time; and

20 (ii) the impact of the proposed new

21 unilateral economic sanction on—

22 (I) humanitarian conditions, in23 cluding the impact on conditions in

24 any specific countries on which the

25 sanction is proposed to be imposed;
30

•S 757 IS

1 (II) humanitarian activities of

2 United States and foreign nongovern3 mental organizations;

4 (III) relations with United States

5 allies; and

6 (IV) other United States national

7 security and foreign policy interests,

8 including countries and entities other

9 than those on which the sanction is

10 proposed to be imposed.

11 (C) A description and assessment of—

12 (i) diplomatic and other steps the

13 United States has taken to accomplish the

14 intended objectives of the proposed sanc15 tion;

16 (ii) the likelihood of multilateral adop17 tion of comparable measures;

18 (iii) comparable measures undertaken

19 by other countries;

20 (iv) alternative measures to promote

21 the same objectives, and an assessment of

22 their potential effectiveness;

23 (v) any obligations of the United

24 States under international treaties or trade
31

•S 757 IS

1 agreements with which the proposed sanc2 tion may conflict;

3 (vi) the likelihood that the proposed

4 sanction will lead to retaliation against

5 United States interests, including agricul6 tural interests; and

7 (vii) whether the achievement of the

8 objectives of the proposed sanction out9 weighs any likely costs to United States

10 foreign policy, national security, economic,

11 and humanitarian interests, including any

12 potential harm to United States business,

13 agriculture, and consumers, and any poten14 tial harm to the international reputation of

15 the United States as a reliable supplier of

16 products, technology, agricultural commod17 ities, and services.

18 (2) REPORT ON OTHER SANCTIONS.—In the

19 case of any unilateral economic sanction that is im20 posed after the date of enactment of this Act, other

21 than a new unilateral economic sanction described in

22 subsection (a)(2) or a sanction that is a continuation

23 of a sanction in effect on the date of enactment of

24 this Act, the President shall not later than 30 days

25 after imposing such sanction submit to Congress a
32

•S 757 IS

1 report described in paragraph (1) relating to such

2 sanction. The report may be provided on a classified

3 basis if disclosure would threaten the national secu4 rity of the United States.

5 (f) REPORT BY THE SECRETARY OF AGRI6 CULTURE.—Prior to the imposition of a new unilateral

7 economic sanction by the President, the Secretary of Agri8 culture shall submit to the appropriate congressional com9 mittees a report that shall contain an assessment of—

10 (1) the extent to which any country or countries

11 proposed to be sanctioned are markets that ac12 counted for, in the preceding calendar year, more

13 than 3 percent of all export sales from the United

14 States of any agricultural commodity;

15 (2) the likelihood that exports of agricultural

16 commodities from the United States will be affected

17 by the proposed sanction or by retaliation by any

18 country proposed to be sanctioned, including specific

19 commodities which are most likely to be affected;

20 (3) the likely effect on incomes of producers of

21 the specific commodities identified by the Secretary;

22 (4) the extent to which the proposed sanction

23 would permit foreign suppliers to replace United

24 States suppliers; and
33

•S 757 IS

1 (5) the likely effect of the proposed sanction on

2 the reputation of United States farmers as reliable

3 suppliers of agricultural commodities in general, and

4 of the specific commodities identified by the Sec5 retary.

6 (g) REPORT BY THE UNITED STATES INTER7 NATIONAL TRADE COMMISSION.—Before imposing a new

8 unilateral economic sanction, the President shall make a

9 timely request to the United States International Trade

10 Commission for a report on the likely short-term and long11 term costs of the proposed sanction to the United States

12 economy, including the potential impact on United States

13 trade performance, employment, and growth, the inter14 national reputation of the United States as a reliable sup15 plier of products, agricultural commodities, technology,

16 and services, and the economic well-being and inter17 national competitive position of United States industries,

18 firms, workers, farmers, and communities.

19 (h) WAIVER AUTHORITY.—The President may waive

20 any of the requirements of subsections (a), (b), (c), (e)(1),

21 (f), and (g), in the event that the President determines

22 that such a waiver is in the national interest of the United

23 States. In the event of such a waiver, the requirements

24 waived shall be met during the 60-day period immediately

25 following the imposition of the new unilateral economic
34

•S 757 IS

1 sanction, and the sanction shall terminate 90 days after

2 being imposed unless such requirements are met. The

3 President may waive any of the requirements of para4 graphs (1)(B), (1)(D), (1)(E), and (2) of subsection (d)

5 in the event that the President determines that the new

6 unilateral economic sanction is related to actual or immi7 nent armed conflict involving the United States.

8 (i) SANCTIONS REVIEW COMMITTEE.—

9 (1) ESTABLISHMENT.—There is established

10 within the executive branch of Government an inter11 agency committee, which shall be known as the

12 Sanctions Review Committee, which shall have the

13 responsibility of coordinating United States policy

14 regarding unilateral economic sanctions and of pro15 viding appropriate recommendations to the President

16 prior to any decision regarding the implementation

17 of any unilateral economic sanction. The Committee

18 shall be composed of the following 11 members, and

19 any other member the President considers appro20 priate:

21 (A) The Secretary of State.

22 (B) The Secretary of the Treasury.

23 (C) The Secretary of Defense.

24 (D) The Secretary of Agriculture.

25 (E) The Secretary of Commerce.
35

•S 757 IS

1 (F) The Secretary of Energy.

2 (G) The United States Trade Representa3 tive.

4 (H) The Director of the Office of Manage5 ment and Budget.

6 (I) The Chairman of the Council of Eco7 nomic Advisers.

8 (J) The Assistant to the President for Na9 tional Security Affairs.

10 (K) The Assistant to the President for

11 Economic Policy.

12 (2) CHAIR.—The President shall designate one

13 of the members specified in paragraph (1) to serve

14 as Chair of the Sanctions Review Committee.

15 (j) INAPPLICABILITY OF OTHER PROVISIONS.—This

16 section applies notwithstanding any other provision of law.

17 SEC. 8. ANNUAL REPORTS.

18 (a) ANNUAL REPORT.—Not later than 6 months

19 after the date of enactment of this Act, and annually

20 thereafter, unless otherwise required under existing law,

21 the President shall submit to the appropriate congres22 sional committees a report detailing with respect to each

23 country or entity against which a unilateral economic

24 sanction has been imposed—
36

•S 757 IS

1 (1) the extent to which the sanction has

2 achieved foreign policy or national security objectives

3 of the United States with respect to that country or

4 entity;

5 (2) the extent to which the sanction has harmed

6 humanitarian interests in that country, the country

7 in which that entity is located, or in other countries;

8 and

9 (3) the impact of the sanction on other national

10 security and foreign policy interests of the United

11 States, including relations with countries friendly to

12 the United States, and on the United States econ13 omy.

14 (b) REPORT BY THE UNITED STATES INTER15 NATIONAL TRADE COMMISSION.—Not later than 6

16 months after the date of enactment of this Act, and annu17 ally thereafter, the United States International Trade

18 Commission shall report to the appropriate congressional

19 committees on the costs, individually and in the aggregate,

20 of all unilateral economic sanctions in effect under United

21 States law, regulation, or Executive order. The calculation

22 of such costs shall include an assessment of the impact

23 of such measures on the international reputation of the

24 United States as a reliable supplier of products, agricul25 tural commodities, technology, and services.
37

•S 757 IS

1 SEC. 9. PRESIDENTIAL WAIVER AUTHORITY.

2 (a) WAIVER AUTHORITY.—The President may waive

3 the application of any sanction or prohibition (or portion

4 thereof) contained in section 101 or 102 of the Arms Ex5 port Control Act, section 620E(e) of the Foreign Assist6 ance Act of 1961, or section 2(b)(4) of the Export Import

7 Bank Act of 1945 if the President determines that such

8 a waiver would advance the purposes of such Acts or the

9 national security interests of the United States.

10 (b) CONSULTATION.—Prior to exercising the waiver

11 authority provided in subsection (a), the President shall

12 consult with the appropriate congressional committees.

13 Such consultations may be conducted on a classified basis

14 if disclosure would threaten the national security of the

15 United States.

16 (c) REPORTS.—At least once every 6 months after

17 exercising the waiver authority in subsection (a), the

18 President shall report to Congress with respect to the ac19 tions taken since the submission of the preceding report,

20 and the reasons that continuation of any waiver under

21 subsection (a) remains in the national security interest of

22 the United States.

23 SEC. 10. EFFECTIVE DATE.

24 This Act shall take effect on the date that is 20 days

25 after the date of enactment of this Act.

Æ