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[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[S. 756 Introduced in Senate (IS)]

  1st Session
                                 S. 756

To expand United States exports of goods and services by requiring the 
 development of objective criteria to achieve market access in foreign 
 countries, to provide the President with reciprocal trade authority, 
                        and for other purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                  May 3 (legislative day, May 1), 1995

Mr. Rockefeller introduced the following bill; which was read twice and 
                  referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL

 
To expand United States exports of goods and services by requiring the 
 development of objective criteria to achieve market access in foreign 
 countries, to provide the President with reciprocal trade authority, 
                        and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Open Markets and Fair Trade Act of 
1995''.

SEC. 2. REPORTS ON MARKET ACCESS.

    (a) Annual Reports.--Not later than 90 days after the date of the 
enactment of this Act, and annually thereafter, the Secretary shall 
submit to the Congress a report with respect to those countries 
selected by the Secretary in which goods or services produced or 
originating in the United States, that would otherwise be competitive 
in those countries, do not have market access. Each report shall 
contain the following with respect to each such country:
            (1) Assessment of potential market access.--An assessment 
        of the opportunities that would, but for the lack of market 
        access, be available in the market in that country, for goods 
        and services produced or originating in the United States in 
        those sectors selected by the Secretary. In making such 
        assessment, the Secretary shall consider the competitive 
        position of such goods and services in similarly developed 
        markets in other countries. Such assessment shall specify the 
        time periods within which such market access opportunities 
        should reasonably be expected to be obtained.
            (2) Criteria for measuring market access.--Objective 
        criteria for measuring the extent to which those market access 
        opportunities described in paragraph (1) have been obtained. 
        The development of such objective criteria may include the use 
        of interim objective criteria to measure results on a periodic 
        basis, as appropriate.
            (3) Compliance with trade agreements.--An assessment of 
        whether, and to what extent, the country concerned has 
        materially complied with--
                    (A) agreements and understandings reached between 
                the United States and that country pursuant to section 
                3, and
                    (B) existing trade agreements between the United 
                States and that country.
        Such assessment shall include specific information on the 
        extent to which United States suppliers have achieved 
        additional access to the market in the country concerned and 
        the extent to which that country has complied with other 
        commitments under such agreements and understandings.
    (b) Selection of Countries and Sectors.--
            (1) In general.--In selecting countries and sectors that 
        are to be the subject of a report under subsection (a), the 
        Secretary shall give priority to--
                    (A) any country with which the United States has a 
                trade deficit if access to the markets in that country 
                is likely to have significant potential to increase 
                exports of United States goods and services; and
                    (B) any country, and sectors therein, in which 
                access to the markets will result in significant 
                employment benefits for producers of United States 
                goods and services.
        The Secretary shall also give priority to sectors which 
        represent critical technologies, including those identified by 
        the National Critical Technologies Panel under section 603 of 
        the National Science and Technology Policy, Organization, and 
        Priorities Act of 1976 (42 U.S.C. 6683).
            (2) First report.--The first report submitted under 
        subsection (a) shall include those countries with which the 
        United States has a substantial portion of its trade deficit.
            (3) Trade surplus countries.--The Secretary may include in 
        reports after the first report such countries as the Secretary 
        considers appropriate with which the United States has a trade 
        surplus but which are otherwise described in subsection (a) and 
        paragraph (1) of this subsection.
    (c) Other Sectors.--The Secretary shall include an assessment under 
subsection (a) of any country or sector for which the Trade 
Representative requests such assessment be made. In preparing any such 
request, the Trade Representative shall give priority to those 
barriers identified in the reports required by section 181(b) of the 
Trade Act of 1974 (19 U.S.C. 2241(b)).
    (d) Information on Access by Foreign Suppliers.--The Secretary 
shall consult with the governments of foreign countries concerning 
access to the markets of any other country of goods and services 
produced or originating in those countries. At the request of the 
government of any such country so consulted, the Secretary may include 
in the reports required by subsection (a) information, with respect to 
that country, on such access.

SEC. 3. NEGOTIATIONS TO ACHIEVE MARKET ACCESS.

    (a) Negotiating Authority.--The President is authorized to enter 
into agreements or other understandings with the government of any 
country for the purpose of obtaining the market access opportunities 
described in the reports of the Secretary under section 2.
    (b) Determination of Priority of Negotiations.--Upon the submission 
by the Secretary of each report under section 2, the Trade 
Representative shall determine--
            (1) for which countries and sectors identified in the 
        report the Trade Representative will pursue negotiations, 
        during the 6-month period following submission of the report, 
        for the purpose of concluding agreements or other 
        understandings described in subsection (a), and the timeframe 
        for pursuing negotiations on any other country or sector 
        identified in the report; and
            (2) for which countries and sectors identified in any 
        previous report of the Secretary under section 2 the Trade 
        Representative will pursue negotiations, during the 6-month 
        period described in paragraph (1), in cases in which--
                    (A) negotiations were not previously pursued by the 
                Trade Representative, or
                    (B) negotiations that were pursued by the Trade 
                Representative did not result in the conclusion of an 
                agreement or understanding described in subsection (a) 
                during the preceding 6-month period, but are expected 
                to result in such an agreement or understanding during 
                the 6-month period described in paragraph (1).
For purposes of this Act, negotiations by the Trade Representative with 
respect to a particular sector shall be for a period of not more than 
12 months.
    (c) Semiannual Reports.--At the end of the 6-month period beginning 
on the date on which the Secretary's first report is submitted under 
section 2(a), and every 6 months thereafter, the Trade Representative 
shall submit to the Congress a report containing the following:
            (1) Report where negotiations pursued in previous 6-month 
        period.--With respect to each country and sector on which 
        negotiations described in subsection (b) were pursued during 
        that 6-month period--
                    (A) a determination of whether such negotiations 
                have resulted in the conclusion of an agreement or 
                understanding intended to obtain the market access 
                opportunities described in the most recent applicable 
                report of the Secretary, and if not--
                            (i) whether such negotiations are 
                        continuing because they are expected to result 
                        in such an agreement or understanding during 
                        the succeeding 6-month period; or
                            (ii) whether such negotiations have 
                        terminated;
                    (B) in the case of a positive determination made 
                under subparagraph (A)(i) in the preceding report 
                submitted under this subsection, a determination of 
                whether the continuing negotiations have resulted in 
                the conclusion of an agreement or understanding 
                described in subparagraph (A) during that 6-month 
                period.
            (2) Report where negotiations not pursued.--With respect to 
        each country and sector on which negotiations described in 
        subsection (b) were not pursued during that 6-month period, a 
        determination of when such negotiations will be pursued.

SEC. 4. MONITORING OF AGREEMENTS AND UNDERSTANDINGS.

    (a) In General.--For the purpose of making the assessments required 
by section 2(a)(3), the Secretary shall monitor the compliance with 
each agreement or understanding reached between the United States and 
any country pursuant to section 3, and with each existing trade 
agreement between the United States and any country that is the subject 
of a report under section 2(a). In making each such assessment, the 
Secretary shall describe--
            (1) the extent to which market access for the country and 
        sectors covered by the agreement or understanding has been 
        achieved; and
            (2) the bilateral trade relationship with that country in 
        that sector.
In the case of agreements or understandings reached pursuant to section 
3, the description under paragraph (1) shall be done on the basis of 
the objective criteria set forth in the applicable report under section 
2(a)(2).
    (b) Treatment of Agreements and Understandings.--Any agreement or 
understanding reached pursuant to negotiations conducted under this 
Act, and each existing trade agreement between the United States and a 
country that is the subject of a report under section 2(a), shall be 
considered to be a trade agreement for purposes of section 301 of the 
Trade Act of 1974.

SEC. 5. TRIGGERING OF SECTION 301 ACTIONS.

    (a) Failure To Conclude Agreements.--In any case in which the Trade 
Representative determines under section 3(c)(1) (A)(ii) or (B) that 
negotiations have not resulted in the conclusion of an agreement or 
understanding described in section 3(a), each restriction on, or 
barrier or impediment to, access to the markets of the country 
concerned that was the subject of such negotiations shall, for purposes 
of title III of the Trade Act of 1974, be considered to be an act, 
policy, or practice determined under section 304 of that Act to be an 
act, policy, or practice that is unreasonable and discriminatory and 
burdens or restricts United States commerce. The Trade Representative 
shall determine what action to take under section 301(b) of that Act in 
response to such act, policy, or practice.
    (b) Noncompliance With Agreements or Understandings.--In any case 
in which the Secretary determines, in a report submitted under section 
2(a), that a foreign country is not in material compliance with--
            (1) any agreement or understanding concluded pursuant to 
        negotiations conducted under section 3, or
            (2) any existing trade agreement between the United States 
        and that country,
the Trade Representative shall determine what action to take under 
section 301(a) of the Trade Act of 1974. For purposes of section 301 of 
that Act, a determination of noncompliance described in the preceding 
sentence shall be treated as a determination made under section 304 of 
that Act.

SEC. 6. EXPEDITED PROCEDURES FOR CERTAIN PRESIDENTIAL ACTIONS.

    (a) Authority for Reciprocal Actions.--In any case in which--
            (1) section 5 applies,
            (2) the President determines that reciprocal action should 
        be taken by the United States in response to--
                    (A) a restriction, barrier, or impediment referred 
                to in section 5(a) with respect to access to the market 
                of a country, or
                    (B) noncompliance with an agreement, understanding, 
                or trade agreement referred to in section 5(b),
        as the case may be,
            (3) changes in existing law or new statutory authority is 
        necessary for such reciprocal action to be taken, and
            (4) the President, within 30 days (excluding any day 
        described in section 154(b) of the Trade Act of 1974) after--
                    (A) the determination of the Trade Representative 
                under section 3(c)(1)(A)(ii) or (B), or
                    (B) the determination of the Secretary in the 
                applicable report under section 2(a),
        as the case may be, submits to the Congress a draft of 
        implementing legislation with respect to the changes or 
        authority described in paragraph (3),
then subsection (c) applies.
    (b) Definitions.--For purposes of this section--
            (1) the term ``reciprocal action'' means action that is 
        taken in direct response to a restriction on, or barrier or 
        impediment to, access to the market in another country and is 
        comparable or of equivalent effect to such restriction, 
        barrier, or impediment; and
            (2) the term ``implementing legislation'' means a bill of 
        either House of Congress which is introduced as provided in 
        subsection (c) and which contains provisions necessary to make 
        the changes or provide the authority described in subsection 
        (a)(3).
    (c) Procedures for Implementing Legislation.--On the day on which 
implementing legislation is submitted to the House of Representatives 
and the Senate under subsection (a), the implementing legislation shall 
be introduced and referred as provided in section 151(c)(1) of the 
Trade Act of 1974 for implementing bills under such section. The 
provisions of subsections (d), (e), (f), and (g) of section 151 of such 
Act shall apply to implementing legislation to the same extent as such 
subsections apply to implementing bills.
    (d) Rules of House of Representatives and Senate.--This section is 
enacted by the Congress--
            (1) as an exercise of the rulemaking power of the House of 
        Representatives and the Senate, respectively, and as such is 
        deemed a part of the rules of each House, respectively, and 
        such procedures supersede other rules only to the extent that 
        they are inconsistent with such other rules; and
            (2) with the full recognition of the constitutional right 
        of either House to change the rules (so far as relating to the 
        procedures of that House) at any time, in the same manner, and 
        to the same extent as any other rule of that House.

SEC. 7. URUGUAY ROUND AGREEMENTS NOT AFFECTED.

    Nothing in this Act shall be construed to violate any provision of 
the agreements approved by the Congress in section 101(a)(1) of the 
Uruguay Round Agreements Act (19 U.S.C. 3511(a)(1)).

SEC. 8. DEFINITIONS.

    As used in this Act:
            (1) Existing trade agreement between the united states and 
        a country.--An ``existing trade agreement'' between the United 
        States and another country means any trade agreement or 
        understanding that was entered into between the United States 
        and that country before the date of the enactment of this Act 
        and is in effect on such date. Such term includes, but is not 
        limited to--
                    (A) with respect to Japan--
                            (i) the Arrangement Between the Government 
                        of Japan and the Government of the United 
                        States of America Concerning Trade in 
                        Semiconductor Products, signed in 1986;
                            (ii) the Arrangement Between the Government 
                        of Japan and the Government of the United 
                        States of America Concerning Trade in 
                        Semiconductor Products, signed in 1991;
                            (iii) the United States-Japan Wood Products 
                        Agreement, signed on June 5, 1990;
                            (iv) Measures Related to Japanese Public 
                        Sector Procurements of Computer Products and 
                        Services, signed on January 10, 1992;
                            (v) the Tokyo Declaration on the U.S.-Japan 
                        Global Partnership, signed on January 9, 1992; 
                        and
                            (vi) the Cellular Telephone and Third-Party 
                        Radio Agreement, signed in 1989;
                    (B) with respect to the European Union--
                            (i) the Agreement Concerning the 
                        Application of the GATT Agreement on Trade in 
                        Civil Aircraft Between the European Economic 
                        Community and the Government of the United 
                        States of America on trade in large civil 
                        aircraft, with annexes, entered into force on 
                        July 17, 1992;
                            (ii) the Agreement Concerning Procurement 
                        Between the United States and the European 
                        Union, signed April 15, 1994; and
                            (iii) the Memorandum of Understanding (MOU) 
                        on Procurement Between the United States and 
                        the European Union, signed May 25, 1993; and
                    (C) with respect to the People's Republic of 
                China--
                            (i) the Memorandum of Understanding (MOU) 
                        on the Protection of Intellectual Property 
                        Rights Between the United States and the 
                        People's Republic of China, signed January 17, 
                        1992;
                            (ii) the Memorandum of Understanding (MOU) 
                        on Market Access Between the United States and 
                        the People's Republic of China, signed October 
                        10, 1992;
                            (iii) the Bilateral Textile Agreement 
                        Between the United States and the People's 
                        Republic of China, signed January 17, 1994; and
                            (iv) an exchange of letters with an 
                        attached action plan between the United States 
                        and the People's Republic of China, signed 
                        February 26, 1995, relating to intellectual 
                        property rights.
            (2) Secretary.--The term ``Secretary'' means the Secretary 
        of Commerce.
            (3) Trade representative.--The term ``Trade 
        Representative'' means the United States Trade Representative.
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