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[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[S. 1939 Introduced in Senate (IS)]

103d CONGRESS
  2d Session
                                S. 1939

  To authorize the establishment of a free trade area in the Western 
                              Hemisphere.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

             March 16 (legislative day, February 22), 1994

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

_______________________________________________________________________

                                 A BILL

 
  To authorize the establishment of a free trade area in the Western 
                              Hemisphere.

    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 ``Western Hemisphere Free Trade Area 
Act of 1994''.

                      TITLE I--POLICY AND PURPOSES

SEC. 101. STATEMENT OF POLICY.

    It shall be the policy of the United States to seek an agreement 
for the establishment before the year 2000 of a free trade area 
covering, to the maximum extent possible, the countries and territories 
geographically located in the Western Hemisphere.

SEC. 102. PURPOSES.

    The purposes of a free trade area in the Western Hemisphere are 
to--
            (1) strengthen the special bonds of friendship and 
        cooperation among nations in the Hemisphere;
            (2) contribute to economic development and strengthen 
        democratic institutions through enhanced Hemispheric 
        cooperation;
            (3) create an expanded and secure market for goods and 
        services throughout the Hemisphere;
            (4) generate and sustain more and better quality employment 
        for people throughout the Hemisphere;
            (5) facilitate economic growth in the Hemisphere;
            (6) establish clear and fair rules governing trade in goods 
        and services;
            (7) reduce distortions in trade and ensure a predictable 
        and transparent framework for investment planning;
            (8) enhance global competition; and
            (9) promote the protection and preservation of the 
        environment.

            TITLE II--NEGOTIATING AUTHORITY AND ELIGIBILITY

SEC. 201. AUTHORITY AND NEGOTIATING OBJECTIVES.

    (a) Agreement.--The President is authorized to undertake 
multilateral negotiations with governments of eligible Western 
Hemisphere countries and territories in order to reach an agreement 
establishing a free trade area in the Western Hemisphere at the 
earliest possible date.
    (b) Objectives.--The overall trade negotiating objectives of the 
United States are--
            (1) to eliminate barriers to trade in, and facilitate cross 
        border movement of, goods and services between countries and 
        territories in the Western Hemisphere;
            (2) to promote fair competition in the Western Hemisphere;
            (3) to substantially increase investment opportunities in 
        countries and territories of the Western Hemisphere;
            (4) to provide adequate and effective protection and 
        enforcement of intellectual property rights throughout the 
        Western Hemisphere;
            (5) to establish procedures to promote and guarantee 
        respect for international workers rights within the Western 
        Hemisphere;
            (6) to establish reciprocal market access among the 
        countries and territories of the Western Hemisphere;
            (7) to establish an effective system of trading disciplines 
        and dispute resolution procedures;
            (8) to codify standards to protect and improve the 
        environment throughout the Western Hemisphere; and
            (9) to establish such other principles as are consistent 
        with the obligations of the North American Free Trade 
        Agreement.

SEC. 202. ELIGIBILITY REQUIREMENTS.

    (a) Specific Countries.--A country shall be treated as an eligible 
Western Hemisphere country or territory if--
            (1) it is a country designated as a beneficiary country 
        pursuant to the Andean Trade Preference Act (19 U.S.C. 3201);
            (2) it is a country designed as a beneficiary country 
        pursuant to the Caribbean Basin Economic Recovery Act (19 
        U.S.C. 2701 et seq.);
            (3) it is a NAFTA country as defined in section 2(4) of the 
        North American Free Trade Agreement Implementation Act (Public 
        Law 103-182; 19 U.S.C. 3301);
            (4) it is the Commonwealth of Puerto Rico; or
            (5) it is one of the United States Virgin Islands.
    (b) Other Countries.--In addition to the countries described in 
subsection (a), a country or territory shall be considered an eligible 
Western Hemisphere country or territory, if the President determines 
(after consultation with the Secretary General of the Organization of 
American States) that such country or territory--
            (1) is located in the Western Hemisphere;
            (2) has a government that is democratically elected in free 
        and fair elections and the government abides by the country's 
        constitution and laws;
            (3) has demonstrated a consistent pattern of respect for 
        internationally recognized human rights of all peoples within 
        its territories;
            (4) has implemented economic policies and investment 
        reforms that are compatible with the obligations and principles 
        expressed in the North American Free Trade Agreement;
            (5) has expressed an interest in participating in a Western 
        Hemisphere free trade area;
            (6) has in place or is prepared to adopt laws that will 
        ensure the protection and preservation of the environment in 
        and around its territory; and
            (7) has adopted and is enforcing laws that guarantee 
        internationally recognized workers' rights with respect to its 
        work force.

        TITLE III--ENTRY INTO FORCE OF FREE TRADE AREA AGREEMENT

SEC. 301. IMPLEMENTATION OF FREE TRADE AREA AGREEMENT.

    (a) In General.--Any agreement concluded under section 201(a) of 
this Act to establish a free trade area in the Western Hemisphere shall 
enter into force if (and only if)--
            (1) the governments of not less than 15 eligible countries 
        or territories become signatories to the agreement and express 
        their intention to ratify or otherwise accede to the agreement;
            (2) the agreement provides for expeditious accession of 
        other countries in the Hemisphere;
            (3) the Agreement makes progress in meeting the objectives 
        described in section 201;
            (4) the President, at least 60 days before the date notice 
        is provided under paragraph (5)--
                    (A) provides written notice of such negotiations to 
                the Committee on Finance of the Senate and the 
                Committee on Ways and Means of the House of 
                Representatives; and
                    (B) consults with such committees regarding the 
                negotiation of such Agreement;
            (5) the President, at least 90 days before the day on which 
        the President enters into the agreement, notifies the House of 
        Representatives and the Senate of the President's intention to 
        enter into such agreement, and promptly thereafter publishes 
        notice of such intention in the Federal Register;
            (6) after entering into the agreement, the President 
        submits a document to the House of Representatives and to the 
        Senate containing a copy of the final legal text of the 
        agreement, together with--
                    (A) a draft implementing bill;
                    (B) a statement of any administrative action 
                proposed to implement the agreement; and
                    (C) the supporting information describing how the 
                agreement satisfies the requirements of this Act; and
            (7) the implementing bill submitted pursuant to paragraph 
        (6) has been enacted into law.
The 60-day period of time described in paragraph (4) and the 90-day 
period of time described in paragraph (5) shall be computed in 
accordance with section 303(h).
    (b) Supporting Information.--The supporting information required 
under subsection (a)(6)(C) consists of--
            (1) an explanation as to how the implementing bill and 
        proposed administrative action will change or affect existing 
        law; and
            (2) a statement--
                    (A) asserting that the agreement makes progress in 
                achieving the applicable purposes, policies, and 
                objectives of this Act;
                    (B) setting forth the reasons of the President 
                regarding--
                            (i) how and to what extent the agreement 
                        makes progress in achieving the applicable 
                        purposes, policies, and objectives referred to 
                        in subparagraph (A), and why and to what extent 
                        the agreement does not achieve other applicable 
                        purposes, policies, and objectives;
                            (ii) how the agreement serves the interests 
                        of United States commerce; and
                            (iii) why the implementing bill and 
                        proposed administrative action is required or 
                        appropriate to carry out the agreement;
                    (C) describing the efforts made by the President to 
                obtain international exchange rate equilibrium and any 
                effect the agreement may have regarding increased 
                international monetary stability; and
                    (D) describing the extent, if any, to which--
                            (i) each eligible country or territory that 
                        is a party to the agreement maintains 
                        noncommercial State trading enterprises that 
                        may adversely affect, nullify, or impair the 
                        benefits to the United States under the 
                        agreement; and
                            (ii) the agreement applies to or affects 
                        purchases and sales by such enterprises.
    (c) Application of Benefits.--To ensure that an eligible country or 
territory which receives benefits under a trade agreement entered into 
under this Act is subject to the obligations imposed by such agreement, 
the President shall recommend to the Congress in the implementing bill 
and statement of administrative action submitted with respect to such 
agreement that the benefits and obligations of such agreement apply 
solely to the parties to such agreement, if such application is 
consistent with the terms of such agreement. The President may also 
recommend with respect to any such agreement that the benefits and 
obligations of such agreement not apply uniformly to all parties to 
such agreement, if such application is consistent with the terms of 
such agreement.

SEC. 302. APPLICATION OF CONGRESSIONAL ``FAST TRACK PROCEDURES'' TO 
              IMPLEMENTING BILL.

    (a) In General.--Except as provided in section 303--
            (1) the provisions of section 151 of the Trade Act of 1974 
        (19 U.S.C. 2191) (hereafter in this section referred to as 
        ``fast track procedures'') apply to implementing bills 
        submitted with respect to a trade agreement entered into 
        pursuant to this Act before December 31, 1999; and
            (2) such fast track procedures shall be extended to 
        implementing bills submitted with respect to a trade agreement 
        entered into under this Act after December 30, 1999, and before 
        December 31, 2002, if (and only if)--
                    (A) the President requests such extension under 
                subsection (b); and
                    (B) neither House of the Congress adopts an 
                extension disapproval resolution under subsection (e) 
                before December 31, 1999.
    (b) Request for Extension.--If the President is of the opinion that 
the fast track procedures should be extended to an implementing bill 
described in subsection (a)(2), the President must submit to the 
Congress, no later than June 30, 1999, a written report that contains a 
request for such extension, together with--
            (1) a description of the status of the trade agreement, and 
        the anticipated schedule for submitting such agreement to the 
        Congress for approval;
            (2) a description of the progress that has been made in 
        negotiations to achieve the purposes, policies, and objectives 
        of this Act, and a statement that such progress justifies the 
        continuation of negotiations; and
            (3) a statement of the reasons why the extension is needed 
        to complete the negotiations.
    (c) Views of Advisory Committee.--The President shall promptly 
inform the Advisory Committee for Trade Policy and Negotiations 
established under section 135 of the Trade Act of 1974 (19 U.S.C. 2155) 
of the President's decision to submit a report to the Congress under 
subsection (b). The Advisory Committee shall submit to the Congress as 
soon as practicable, but no later than June 30, 1999, a written report 
that contains--
            (1) its views regarding the progress that has been made in 
        negotiations to achieve the purposes, policies, and objectives 
        of this Act; and
            (2) a statement of its views, and the reasons therefor, 
        regarding whether the extension requested under subsection (b) 
        should be approved or disapproved.
    (d) Reports May Be Classified.--The reports submitted to the 
Congress under subsections (b) and (c), or any portion of the reports, 
may be classified to the extent the President determines appropriate.
    (e) Extension Disapproval Resolution.--
            (1) In general.--For purposes of this section, the term 
        ``extension disapproval resolution'' means a resolution of 
        either House of the Congress, the sole matter after the 
        resolving clause of which is as follows: ``That the __________ 
        disapproves the request of the President for the extension, 
        under section 302 of the Western Hemisphere Free Trade Area Act 
        of 1994, of the provisions of section 151 of the Trade Act of 
        1974 to an implementing bill submitted with respect to a trade 
        agreement entered into under section 201 of such Act of 1974 
        after December 30, 1999, because sufficient tangible progress 
        has not been made in trade negotiations.'', with the blank 
        space being filled with the name of the resolving House of the 
        Congress.
            (2) Procedure.--An extension disapproval resolution--
                    (A) may be introduced in either House of the 
                Congress by any member of such House; and
                    (B) shall be jointly referred, in the House of 
                Representatives, to the Committee on Ways and Means and 
                the Committee on Rules.
            (3) Section 152 (d) and (e).--The provisions of section 152 
        (d) and (e) of the Trade Act of 1974 (19 U.S.C. 2192 (d) and 
        (e)) (relating to the floor consideration of certain 
        resolutions in the House and Senate) apply to extension 
        disapproval resolutions.
            (4) Committee reports.--It is not in order for--
                    (A) the Senate to consider any extension 
                disapproval resolution not reported by the Committee on 
                Finance;
                    (B) the House of Representatives to consider any 
                extension disapproval resolution not reported by the 
                Committee on Ways and Means and the Committee on Rules; 
                or
                    (C) either House of the Congress to consider an 
                extension disapproval resolution that is reported to 
                such House after December 15, 1999.

SEC. 303. LIMITATIONS ON USE OF ``FAST TRACK PROCEDURES''.

    (a) In General.--The fast track procedures shall not apply to any 
implementing bill submitted with respect to a trade agreement entered 
into under this Act if both Houses of the Congress separately agree to 
a procedural disapproval resolution within any 60-day period.
    (b) Procedural Disapproval Resolution.--A procedural disapproval 
resolution--
            (1) in the House of Representatives--
                    (A) shall be introduced by the chairman or ranking 
                Minority Member of the Committee on Ways and Means or 
                the Chairman or ranking Minority Member of the 
                Committee on Rules;
                    (B) shall be jointly referred to the Committee on 
                Ways and Means and the Committee on Rules; and
                    (C) may not be amended by either committee; and
            (2) in the Senate shall be an original resolution of the 
        Committee on Finance.
    (c) Floor Consideration.--The provisions of section 152 (d) and (e) 
of the Trade Act of 1974 (19 U.S.C. 2192 (d) and (e)) (relating to the 
floor consideration of certain resolutions in the House and Senate) 
apply to procedural disapproval resolutions.
    (d) Resolution Must Be Reported.--It is not in order for the House 
of Representatives to consider any procedural disapproval resolution 
not reported by the Committee on Ways and Means and the Committee on 
Rules.
    (e) Definition.--For purposes of this subsection, the term 
``procedural disapproval resolution'' means a resolution of either 
House of the Congress, the sole matter after the resolving clause of 
which is as follows: ``That the President has failed or refused to 
consult with Congress on trade negotiations and the trade agreement in 
accordance with the provisions of the Western Hemisphere Free Trade 
Area Act of 1994, and, therefore, the provisions of section 151 of the 
Trade Act of 1974 shall not apply to any implementing bill submitted 
with respect to any trade agreement entered into under section 201 of 
such Act of 1994, if, during the 60-day period beginning on the date on 
which this resolution is agreed to by the ____, the ____ agrees to a 
procedural disapproval resolution (within the meaning of section 303(e) 
of such Act of 1994).'', with the first blank space being filled with 
the name of the resolving House of the Congress and the second blank 
space being filled with the name of the other House of the Congress.
    (f) Limitations.--
            (1) In general.--The fast track procedures shall not apply 
        to any implementing bill that contains a provision approving a 
        trade agreement which is entered into under section 201 with an 
        eligible country or territory if either--
                    (A) the requirements of section 301(a) are not met 
                with respect to the negotiation of such agreement; or
                    (B) the Committee on Finance of the Senate or the 
                Committee on Ways and Means of the House of 
                Representatives disapproves of the negotiation of such 
                agreement before the close of the 60-day period which 
                begins on the date notice is provided under section 
                301(a)(4) with respect to the negotiation of such 
                agreement.
    (g) Rules of House of Representatives and Senate.--This section and 
section 302 are 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.
    (h) Computation of Certain Periods of Time.--Each period of time 
described in subsections (a) and (e), and paragraph (2) of this section 
shall be computed without regard to--
            (1) the days on which either House of Congress is not in 
        session because of an adjournment of more than 3 days to a day 
        certain or an adjournment of the Congress sine die; and
            (2) any Saturday and Sunday, not excluded under paragraph 
        (1), when either House of the Congress is not in session.

SEC. 304. DEFINITIONS.

    For purposes of this title:
            (1) Implementing bill.--The term ``implementing bill'' has 
        the meaning given such term in section 151(b)(1) of the Trade 
        Act of 1974 (19 U.S.C. 2191(b)(1)).
            (2) State trading enterprise.--The term ``State trading 
        enterprise'' means--
                    (A) any agency, instrumentality, or administrative 
                unit of a foreign country which--
                            (i) purchases goods or services in 
                        international trade for any purpose other than 
                        the use of such goods or services by such 
                        agency, instrumentality, administrative unit, 
                        or foreign country, or
                            (ii) sells goods or services in 
                        international trade; or
                    (B) any business firm which--
                            (i) is substantially owned or controlled by 
                        a foreign country or any agency, 
                        instrumentality, or administrative unit 
                        thereof,
                            (ii) is granted (formally or informally) 
                        any special or exclusive privilege by such 
                        foreign country, agency, instrumentality, or 
                        administrative unit, and
                            (iii) purchases goods or services in 
                        international trade for any purpose other than 
                        the use of such goods or services by such 
                        foreign country, agency, instrumentality, or 
                        administrative unit, or which sells goods or 
                        services in international trade.

                TITLE IV--HEMISPHERE TRADE ORGANIZATION

SEC. 401. ESTABLISHMENT OF THE WESTERN HEMISPHERE TRADE ORGANIZATION.

    (a) Policy.--In order to facilitate the early conclusion of an 
agreement to establish a free trade area in the Western Hemisphere, the 
President should consider the advisability of proposing the creation of 
a Western Hemisphere Trade Organization as a specialized organization 
of the Organization of American States and designating the United 
States Trade Representative as the President's representative to such 
organization.
    (b) Purpose.--The purpose of the Western Hemisphere Trade 
Organization shall be--
            (1) to serve as the locus for negotiations of a free trade 
        area agreement in the Western Hemisphere; and
            (2) to facilitate the implementation and enforcement of the 
        provisions of such agreement.

                TITLE V--AUTHORIZATION OF APPROPRIATIONS

SEC. 501. AUTHORIZATION OF APPROPRIATIONS.

    (a) In General.--Beginning in fiscal year 1995, and each fiscal 
year thereafter, there are authorized to be appropriated to the 
President such sums as may be necessary to carry out the purposes of 
this Act.
    (b) Transfer Authority.--The President may transfer such amounts of 
the sums appropriated as the President deems necessary to any agency of 
the government or to any international organization established to 
facilitate the purposes of this Act.
    (c) Availability of Funds.--Funds authorized to be appropriated 
pursuant to this Act shall remain available until expended.

                                 <all>

S 1939 IS----2
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