II

103D CONGRESS

2D SESSION S. 2293

To modify the negotiating objectives of the United States for future trade

agreements, and for other purposes.

IN THE SENATE OF THE UNITED STATES

JULY 18 (legislative day, JULY 11), 1994

Mr. KERRY introduced the following bill; which was referred to the Committee

on Finance

A BILL

To modify the negotiating objectives of the United States

for future trade agreements, 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. TRADE NEGOTIATING OBJECTIVES.

4 Section 1101 of the Omnibus Trade and Competitive5 ness Act of 1988 (19 U.S.C. 2901) is amended as follows:

6 (1) OVERALL TRADE NEGOTIATING OBJEC7 TIVES.—Subsection (a) is amended—

8 (A) in paragraph (2) by striking ‘‘and’’

9 after the semicolon;
2

•S 2293 IS

1 (B) in paragraph (3) by striking the period

2 and inserting ‘‘; and’’; and

3 (C) by adding after paragraph (3) the fol4 lowing:

5 ‘‘(4) increased compatibility of trade agree6 ments with environmental protection, conservation,

7 and sustainable development.’’.

8 (2) PRINCIPAL TRADE NEGOTIATING OBJEC9 TIVES.—Subsection (b) is amended as follows:

10 (A) DISPUTE SETTLEMENT.—Paragraph

11 (1)(B) is amended to read as follows:

12 ‘‘(B) to ensure that such mechanisms with13 in trade agreements to which the United States

14 is a party provide for more effective and expedi15 tious resolution of disputes, improve trans16 parency and public participation, and enable

17 better enforcement of United States rights, in18 cluding those relating to environment and con19 servation.’’.

20 (B) TRANSPARENCY.—Paragraph (3) is

21 amended by inserting ‘‘, including those related

22 to environment and conservation,’’ after ‘‘trade

23 matters’’.

24 (C) DEVELOPING COUNTRIES.—Paragraph

25 (4) is amended—
3

•S 2293 IS

1 (i) in subparagraph (A) by striking

2 ‘‘and’’ after the semicolon;

3 (ii) in subparagraph (B) by striking

4 the period and inserting ‘‘; and’’; and

5 (iii) by adding after subparagraph (B)

6 the following:

7 ‘‘(C) to take into account the particular

8 needs of developing countries in trade matters

9 relating to environment and conservation.’’.

10 (D) UNFAIR TRADE PRACTICES.—Para11 graph (8)(A) is amended—

12 (i) by striking ‘‘the GATT and non13 tariff measure’’ and inserting ‘‘trade’’; and

14 (ii) by inserting ‘‘and other practices

15 potentially harmful to the environment’’

16 after ‘‘resource input subsidies’’.

17 (E) INTELLECTUAL PROPERTY.—Para18 graph (10) is amended—

19 (i) in subparagraph (C) by striking

20 ‘‘and’’ after the semicolon;

21 (ii) in subparagraph (D) by striking

22 the period and inserting ‘‘; and’’; and

23 (iii) by adding at the end the follow24 ing:
4

•S 2293 IS

1 ‘‘(E) to promote compatibility of estab2 lished standards of the World Trade Organiza3 tion relating to intellectual property with exist4 ing international biological diversity conven5 tions.’’.

6 (F) FOREIGN INVESTMENT.—Paragraph

7 (11) is amended—

8 (i) by striking ‘‘direct’’ in the para9 graph heading and each place it appears in

10 the text; and

11 (ii) in subparagraph (A)(ii)—

12 (I) by striking ‘‘and’’ at the end

13 of subclause (I);

14 (II) by striking the period at the

15 end of subclause (II) and inserting ‘‘,

16 and’’; and

17 (III) by adding at the end the

18 following:

19 ‘‘(III) will promote environ20 mentally sensitive foreign investment

21 and discourage countries from attract22 ing or maintaining foreign investment

23 by relaxing domestic health, safety, or

24 environmental measures.’’.
5

•S 2293 IS

1 (G) ADDITIONAL OBJECTIVES.—Subsection

2 (b) is amended by adding at the end the follow3 ing:

4 ‘‘(17) ENVIRONMENT AND CONSERVATION.—

5 The principal negotiating objectives of the United

6 States regarding environment and conservation is7 sues related to trade and foreign investment are

8 to—

9 ‘‘(A) promote compatibility between trade

10 agreements and sustainable development, and

11 foster the continual protection and improvement

12 of the environment, while recognizing national

13 sovereignty;

14 ‘‘(B) increase cooperation on trade-related

15 environmental policies to better conserve, pro16 tect, and enhance the environment;

17 ‘‘(C) avoid trade distortions or barriers

18 that undermine environmental protection and

19 conservation or that constitute disguised protec20 tionism;

21 ‘‘(D) promote transparency and public par22 ticipation, and increase consumer information

23 in the development of environmental laws, regu24 lations, and policies; and
6

•S 2293 IS

1 ‘‘(E) promote compatibility of trade agree2 ments with international environmental agree3 ments to protect shared global resources.

4 ‘‘(18) WOOD AND WOOD PRODUCTS.—The prin5 cipal negotiating objectives of the United States re6 garding trade in wood and wood products are to—

7 ‘‘(A) promote sustainable forestry prac8 tices; and

9 ‘‘(B) increase market access for value10 added wood products and wood products that

11 are produced from timber that is sustainably

12 harvested.’’.

13 SEC. 2. CITIZEN PARTICIPATION.

14 Section 135 of the Trade Act of 1974 (19 U.S.C.

15 2155) is amended as follows:

16 (1) ADVISORY COMMITTEE FOR TRADE POLICY

17 AND NEGOTIATIONS.—Subsection (b)(1) is amended

18 by inserting ‘‘nongovernmental environmental and

19 conservation organizations,’’ after ‘‘governments,’’.

20 (2) GENERAL POLICY, SECTORAL, OR FUNC21 TIONAL COMMITTEES.—Subsection (c) is amended—

22 (A) in paragraph (1)—

23 (i) by inserting ‘‘environment and con24 servation,’’ after ‘‘general policy advisory

25 committees for’’;
7

•S 2293 IS

1 (ii) by inserting ‘‘environment and

2 conservation,’’ after ‘‘representative of all’’;

3 (iii) by striking ‘‘and the Secretaries’’

4 and all that follows through ‘‘or other ex5 ecutive’’ and inserting ‘‘, the Secretaries of

6 the Interior, Commerce, Defense, Labor,

7 Agriculture, and the Treasury, and the Ad8 ministrators of the Environmental Protec9 tion Agency and the National Oceanic and

10 Atmospheric Administration, or the heads

11 of other executive’’; and

12 (iv) by inserting ‘‘and Administra13 tors’’ after ‘‘such Secretaries’’;

14 (B) in paragraph (2)—

15 (i) by inserting ‘‘environment and con16 servation,’’ after ‘‘representative of all’’;

17 (ii) by striking ‘‘and the Secretaries’’

18 and all that follows through ‘‘or other ex19 ecutive’’ and inserting ‘‘, the Secretaries of

20 the Interior, Commerce, Labor, Agri21 culture, and the Treasury, and the Admin22 istrators of the Environmental Protection

23 Agency and the National Oceanic and At24 mospheric Administration, or the heads of

25 other executive’’; and
8

•S 2293 IS

1 (iii) in subparagraph (B)—

2 (I) by redesignating clauses (iii)

3 through (v) as clauses (iv) through

4 (vi), respectively; and

5 (II) by inserting after clause (ii)

6 the following:

7 ‘‘(iii) environmental impacts of

8 liberalized trade and investment,’’.

9 (3) ADVICE AND INFORMATION.—Subsection

10 (d) is amended by striking ‘‘and the Secretaries’’

11 and all that follows through ‘‘or other executive’’

12 and inserting ‘‘, the Secretaries of the Interior, Agri13 culture, Commerce, Labor, and Defense, and the Ad14 ministrators of the Environmental Protection Agen15 cy and the National Oceanic and Atmospheric Ad16 ministration, or the heads of other executive’’.

17 (4) MEETINGS AT CLOSE OF NEGOTIATIONS.—

18 Subsection (e) is amended by adding at the end the

19 following:

20 ‘‘(4) The report of the appropriate sectoral or

21 functional committee or committees under para22 graph (1) shall include an advisory opinion as to the

23 significant environmental effects of trade conducted

24 within the sector or within the functional area.’’.
9

•S 2293 IS

1 (5) TRADE SECRETS AND CONFIDENTIAL IN2 FORMATION.—Subsection (g)(3) is amended by

3 striking ‘‘and the Secretaries’’ and all that follows

4 through ‘‘or other executive’’ and inserting ‘‘, the

5 Secretaries of the Interior, Commerce, Labor, De6 fense, and Agriculture, and the Administrators of

7 the Environmental Protection Agency and the Na8 tional Oceanic and Atmospheric Administration, or

9 the heads of other executive’’.

10 (6) ADVISORY COMMITTEE SUPPORT.—Sub11 section (h) is amended by striking ‘‘and the Sec12 retaries’’ and all that follows through ‘‘or other exec13 utive’’ and inserting ‘‘, the Secretaries of the Inte14 rior, Commerce, Labor, Defense, Agriculture, and

15 the Treasury, and the Administrators of the Envi16 ronmental Protection Agency and the National Oce17 anic and Atmospheric Administration, or the heads

18 of other executive’’.

19 (7) CONSULTATION WITH ADVISORY COMMIT20 TEES.—Subsection (i) is amended—

21 (A) by inserting ‘‘the Interior,’’ after ‘‘Sec22 retaries of’’; and

23 (B) by striking ‘‘the Treasury, or other ex24 ecutive’’ and inserting ‘‘and the Treasury and

25 the Administrator of the Environmental Protec-
10

•S 2293 IS

1 tion Agency and the National Oceanic and At2 mospheric Administration, or the heads of other

3 executive’’.

4 (8) PRIVATE ORGANIZATIONS OR GROUPS.—

5 Subsection (j) is amended by inserting ‘‘environment

6 and conservation,’’ after ‘‘government’’.

7 SEC. 3. ADDITIONAL NEGOTIATING OBJECTIVES.

8 Section 1101 of the Omnibus Trade and Competitive9 ness Act of 1988 is amended by adding at the end the

10 following:

11 ‘‘(c) SPECIFIC OBJECTIVES FOR PARTICULAR FO12 RUMS.—

13 ‘‘(1) WTO.—The principal negotiating objec14 tives of the United States regarding environment

15 and conservation in the World Trade Organization

16 and the Committee on Trade and Environment of

17 the World Trade Organization are—

18 ‘‘(A) to develop guidelines for the use of

19 national trade and investment measures de20 signed to protect the environment, including

21 those related to the product life cycle;

22 ‘‘(B) to increase transparency, openness,

23 and public participation in dispute settlement

24 procedures;
11

•S 2293 IS

1 ‘‘(C) to improve the rules and agreements

2 of the World Trade Organization regarding

3 measures to protect domestic environmental

4 standards and conservation measures;

5 ‘‘(D) to promote greater compatibility of

6 the rules and agreements of the World Trade

7 Organization with international environmental

8 agreements that rely upon trade sanctions for

9 enforcement;

10 ‘‘(E) to consider incentives, including im11 proved market access, that might promote reso12 lution of environmental issues relating to inter13 national trade;

14 ‘‘(F) to consider intellectual property rules

15 that may promote greater protection of

16 biodiversity;

17 ‘‘(G) to develop guidelines with respect to

18 trade in domestically prohibited or severely re19 stricted goods;

20 ‘‘(H) to achieve progress toward eliminat21 ing agricultural subsidies that distort trade and

22 harm the environment; and

23 ‘‘(I) to create an open process to consider

24 continually new trade-related initiatives to pro25 mote sustainable development, internalize envi-
12

•S 2293 IS

1 ronmental costs, and enhance environmental

2 protection and the effectiveness of conservation

3 measures.

4 ‘‘(2) BILATERAL TRADE OR NAFTA ACCES5 SION.—The principal negotiating objectives of the

6 United States with respect to bilateral trade acces7 sion to the North American Free Trade Agreement

8 shall include—

9 ‘‘(A) to establish, where relevant for the

10 country seeking accession, minimum environ11 mental safeguards that are not less than those

12 contained in the North American Free Trade

13 Agreement and the North American Agreement

14 on Environmental Cooperation; and

15 ‘‘(B) to implement such additional meas16 ures as may be needed to address country-spe17 cific trade and environment issues.

18 ‘‘(3) ASIA-PACIFIC ECONOMIC COOPERATION

19 FORUM.—The principal negotiating objectives of the

20 United States in the Asia-Pacific Economic Coopera21 tion forum (APEC) shall include—

22 ‘‘(A) to develop a program relating to envi23 ronment and conservation measures of rel24 evance to member countries of APEC; and
13

•S 2293 IS

1 ‘‘(B) to establish a permanent institutional

2 mechanism or secretariat and a timetable for

3 implementing the program developed under sub4 paragraph (A).’’.

Æ