II

103D CONGRESS

2D SESSION S. 1788

To authorize negotiation of free trade agreements with the countries of

the Americas, and for other purposes.

IN THE SENATE OF THE UNITED STATES

JANUARY 25, 1994

Mr. GRAMM introduced the following bill; which was read twice and referred

to the Committee on Finance

A BILL

To authorize negotiation of free trade agreements with the

countries of the Americas, 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 ‘‘American Free Trade

5 Act’’.

6 SEC. 2. FINDINGS.

7 The Congress makes the following findings:

8 (1) The countries of the Western Hemisphere

9 have enjoyed more success in the twentieth century

10 in the peaceful conduct of their relations among
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1 themselves than have the countries in the rest of the

2 world.

3 (2) The economic prosperity of the United

4 States and its trading partners in the Western

5 Hemisphere is increased by the reduction of trade

6 barriers.

7 (3) Trade protection endangers economic pros8 perity in the United States and throughout the

9 Western Hemisphere and undermines civil liberty

10 and constitutionally limited government.

11 (4) The successful establishment of a North

12 American Free Trade Area sets the pattern for the

13 reduction of trade barriers throughout the Western

14 Hemisphere, enhancing prosperity in place of the

15 cycle of increasing trade barriers and deepening pov16 erty that results from a resort to protectionism and

17 trade retaliation.

18 (5) The reduction of government interference in

19 the foreign and domestic sectors of a nation’s econ20 omy and the concomitant promotion of economic op21 portunity and freedoms promote civil liberty and

22 constitutionally limited government.

23 (6) Countries that observe a consistent policy of

24 free trade, the promotion of free enterprise and

25 other economic freedoms (including effective protec-
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1 tion of private property rights), the removal of bar2 riers to foreign direct investment, in the context of

3 constitutionally limited government and minimal in4 terference in the economy, will follow the surest and

5 most effective prescription to alleviate poverty and

6 provide for economic, social, and political develop7 ment.

8 SEC. 3. FREE TRADE AREA FOR THE WESTERN HEMI9 SPHERE.

10 (a) IN GENERAL.—The President shall take action

11 to initiate negotiations to obtain trade agreements with

12 the sovereign countries located in the Western Hemi13 sphere, the terms of which provide for the reduction and

14 ultimate elimination of tariffs and other nontariff barriers

15 to trade, for the purpose of promoting the eventual estab16 lishment of a free trade area for the entire Western Hemi17 sphere.

18 (b) RECIPROCAL BASIS.—An agreement entered into

19 under subsection (a) shall be reciprocal and provide mu20 tual reductions in trade barriers to promote trade, eco21 nomic growth, and employment.

22 (c) BILATERAL OR MULTILATERAL BASIS.—Agree23 ments may be entered into under subsection (a) on a bilat24 eral basis with any foreign country described in that sub-
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1 section or on a multilateral basis with all of such countries

2 or any group of such countries.

3 SEC. 4. FREE TRADE WITH FREE CUBA.

4 (a) RESTRICTIONS PRIOR TO RESTORATION OF

5 FREEDOM IN CUBA.—The provisions of this Act shall not

6 apply to Cuba unless the President certifies (1) that free7 dom has been restored in Cuba, and (2) that the claims

8 of United States citizens for compensation for expropri9 ated property have been appropriately addressed.

10 (b) STANDARDS FOR THE RESTORATION OF FREE11 DOM IN CUBA.—The President shall not make the certifi12 cation that freedom has been restored in Cuba, as de13 scribed in subsection (a), unless he determines that—

14 (1) a constitutionally guaranteed democratic

15 government has been established in Cuba, with lead16 ers chosen through free and fair elections;

17 (2) the rights of individuals to private property

18 have been restored and are effectively protected and

19 broadly exercised in Cuba;

20 (3) Cuba has a currency that is fully convertible

21 domestically and internationally;

22 (4) all political prisoners have been released in

23 Cuba; and

24 (5) the rights of free speech and freedom of the

25 press in Cuba are effectively guaranteed.
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1 (c) PRIORITY FOR FREE TRADE WITH FREE

2 CUBA.—Upon making the certification described in sub3 section (a) the President shall give priority to the negotia4 tion of a free trade agreement with Cuba.

5 SEC. 5. PERMANENT APPLICATION OF FAST TRACK PROCE6 DURES.

7 The provisions of section 151 of the Trade Act of

8 1974 (19 U.S.C. 2191) apply to implementing bills sub9 mitted with respect to trade agreements entered into pur10 suant to the provisions of this Act.

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