`[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[S. 1269 Placed on Calendar Senate (PCS)]





                                                       Calendar No. 198

105th CONGRESS

  1st Session

                                S. 1269

                          [Report No. 105-102]

_______________________________________________________________________

                                 A BILL

To establish objectives for negotiating and procedures for implementing 
                       certain trade agreements.

_______________________________________________________________________

                            October 8, 1997

                 Read twice and placed on the calendar





                                                       Calendar No. 198
105th CONGRESS
  1st Session
                                S. 1269

                          [Report No. 105-102]

To establish objectives for negotiating and procedures for implementing 
                       certain trade agreements.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            October 8, 1997

    Mr. Roth, from the Committee on Finance, reported the following 
     original bill; which was read twice and placed on the calendar

_______________________________________________________________________

                                 A BILL


 
To establish objectives for negotiating and procedures for implementing 
                       certain trade agreements.

    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 ``Reciprocal Trade Agreements Act of 
1997''.

SEC. 2. TRADE NEGOTIATING OBJECTIVES OF THE UNITED STATES.

    (a) Statement of Purposes.--The purposes of this Act are to 
achieve, through trade agreements affording mutual benefits--
            (1) more open, equitable, and reciprocal market access for 
        United States goods, services, and investment;
            (2) the reduction or elimination of barriers and other 
        trade-distorting policies and practices;
            (3) a more effective system of international trading 
        disciplines and procedures; and
            (4) economic growth, higher living standards, and full 
        employment in the United States, and economic growth and 
        development among United States trading partners.
    (b) Principal Trade Negotiating Objectives.--The principal trade 
negotiating objectives of the United States for agreements subject to 
the provisions of section 3 include the following:
            (1) Reduction of barriers to trade in goods.--The principal 
        negotiating objective of the United States regarding barriers 
        to trade in goods is to obtain competitive opportunities for 
        United States exports in foreign markets substantially 
        equivalent to the opportunities afforded foreign exports to 
        United States markets, including the reduction or elimination 
        of tariff and nontariff trade barriers, including--
                    (A) tariff and nontariff disparities remaining from 
                previous rounds of multilateral trade negotiations that 
                have put United States exports at a competitive 
                disadvantage in world markets;
                    (B) measures identified in the annual report 
                prepared under section 181 of the Trade Act of 1974 (19 
                U.S.C. 2241); and
                    (C) tariff elimination for products identified in 
                section 111(b) of the Uruguay Round Agreements Act (19 
                U.S.C. 3521(b)) and the accompanying Statement of 
                Administrative Action related to that section.
            (2) Trade in services.--
                    (A) The principal negotiating objectives of the 
                United States regarding trade in services are--
                            (i) to reduce or eliminate barriers to, or 
                        other distortions of, international trade in 
                        services, including regulatory and other 
                        barriers that deny national treatment or 
                        unreasonably restrict the establishment and 
operation of service suppliers in foreign markets; and
                            (ii) to develop internationally agreed 
                        rules, including dispute settlement procedures, 
                        that--
                                    (I) are consistent with the 
                                commercial policies of the United 
                                States, and
                                    (II) will reduce or eliminate such 
                                barriers or distortions, and help 
                                ensure fair, equitable opportunities 
                                for foreign markets.
                    (B) In pursuing the negotiating objectives 
                described in subparagraph (A), United States 
                negotiators shall take into account legitimate United 
                States domestic objectives, including protection of 
                legitimate health, safety, essential security, 
                environmental, consumer, and employment opportunity 
                interests. The preceding sentence shall not be 
                construed to authorize any modification of United 
                States law.
            (3) Foreign investment.--
                    (A) The principal negotiating objectives of the 
                United States regarding foreign investment are--
                            (i) to reduce or eliminate artificial or 
                        trade-distorting barriers to foreign 
                        investment, to expand the principle of national 
                        treatment, and to reduce unreasonable barriers 
                        to establishment; and
                            (ii) to develop internationally agreed 
                        rules through the negotiation of investment 
                        agreements, including dispute settlement 
                        procedures, that--
                                    (I) will help ensure a free flow of 
                                foreign investment, and
                                    (II) will reduce or eliminate the 
                                trade distortive effects of certain 
                                trade-related investment measures.
                    (B) In pursuing the negotiating objectives 
                described in subparagraph (A), United States 
                negotiators shall take into account legitimate United 
                States domestic objectives, including protection of 
                legitimate health, safety, essential security, 
                environmental, consumer, and employment opportunity 
                interests. The preceding sentence shall not be 
                construed to authorize any modification of United 
                States law.
            (4) Intellectual property.--The principal negotiating 
        objectives of the United States regarding intellectual property 
        are--
                    (A) to further promote adequate and effective 
                protection of intellectual property rights, by--
                            (i) seeking the enactment and effective 
                        enforcement by foreign countries of laws that--
                                    (I) recognize and adequately 
                                protect intellectual property, 
                                including copyrights, patents, 
                                trademarks, semiconductor chip layout 
                                designs, and trade secrets, and
                                    (II) provide protection against 
                                unfair competition;
                            (ii) accelerating and ensuring the full 
                        implementation of the Agreement on Trade-
                        Related Aspects of Intellectual Property Rights 
                        referred to in section 101(d)(15) of the 
                        Uruguay Round Agreements Act (19 U.S.C. 
                        3511(d)(15)), and achieving improvements in the 
                        standards of that Agreement;
                            (iii) providing strong protection for new 
                        and emerging technologies and new methods of 
                        transmitting and distributing products 
                        embodying intellectual property;
                            (iv) preventing or eliminating 
                        discrimination with respect to matters 
                        affecting the availability, acquisition, scope, 
                        maintenance, use, and enforcement of 
                        intellectual property rights; and
                            (v) providing for strong enforcement of 
                        intellectual property rights through 
                        accessible, expeditious, and effective civil, 
                        administrative, and criminal enforcement 
                        mechanisms;
                    (B) to secure fair, equitable, and 
                nondiscriminatory market access opportunities for 
                United States persons that rely on intellectual 
                property protection; and
                    (C) to recognize that the inclusion in the WTO of--
                            (i) adequate and effective substantive 
                        norms and standards for the protection and 
                        enforcement of intellectual property rights, 
                        and
                            (ii) dispute settlement provisions and 
                        enforcement procedures,
                is without prejudice to other complementary initiatives 
                undertaken in other international organizations.
            (5) Agriculture.--The principal negotiating objectives of 
        the United States with respect to agriculture are, in addition 
        to those set forth in section 1123(b) of the Food Security Act 
        of 1985 (7 U.S.C. 1736r(b)), to achieve, on an expedited basis 
        to the maximum extent feasible, more open and fair conditions 
        of trade in agricultural commodities by--
                    (A) developing, strengthening, and clarifying rules 
                for agricultural trade, including disciplines on 
                restrictive or trade-distorting import and export 
                practices such as those that would impact perishable or 
                cyclical products;
                    (B) increasing United States agricultural exports 
                by eliminating barriers to trade (including transparent 
                and nontransparent barriers) and reducing or 
                eliminating the subsidization of agricultural 
                production consistent with the United States policy of 
                agricultural stabilization in cyclical and 
                unpredictable markets;
                    (C) creating a free and more open world 
                agricultural trading system by resolving questions 
                pertaining to export and other trade-distorting 
                subsidies, market pricing, and market access;
                    (D) eliminating or reducing substantially other 
                specific constraints to fair trade and more open market 
                access, such as tariffs, quotas, and other nontariff 
                practices; and
                    (E) developing, strengthening, and clarifying rules 
                that address practices that unfairly decrease United 
                States market access opportunities or distort 
                agricultural markets to the detriment of the United 
                States, including--
                            (i) unfair or trade-distorting activities 
                        of state trading enterprises and other 
                        administrative mechanisms, including lack of 
                        price transparency;
                            (ii) unjustified restrictions or commercial 
                        requirements affecting new technologies, 
                        including biotechnology;
                            (iii) unjustified sanitary or phytosanitary 
                        restrictions;
                            (iv) other unjustified technical barriers 
                        to trade; and
                            (v) restrictive rules in the administration 
                        of tariff-rate quotas.
            (6) Unfair trade practices.--The principal negotiating 
        objectives of the United States with respect to unfair trade 
        practices are--
                    (A) to enhance the operation and effectiveness of 
                the relevant Uruguay Round Agreements and any other 
                agreements designed to define, deter, discourage the 
                persistent use of, and otherwise discipline, unfair 
                trade practices having adverse trade effects, including 
                forms of subsidy and dumping not adequately 
                disciplined, such as resource input subsidies, 
                diversionary dumping, dumped or subsidized inputs, 
                third country dumping, circumvention of antidumping or 
                countervailing duty orders, and export targeting 
                practices; and
                    (B) to obtain the enforcement of WTO rules 
                against--
                            (i) trade-distorting practices of state 
                        trading enterprises, and
                            (ii) the acts, practices, or policies of 
                        any foreign government which, as a practical 
                        matter, unreasonably require that--
                                    (I) substantial direct investment 
                                in the foreign country be made,
                                    (II) intellectual property be 
                                licensed to the foreign country or to 
                                any firm of the foreign country, or
                                    (III) other collateral concessions 
                                be made,
                        as a condition for the importation of any 
                        product or service of the United States into 
                        the foreign country or as a condition for 
                        carrying on business in the foreign country.
            (7) Safeguards.--The principal negotiating objectives of 
        the United States regarding safeguards are--
                    (A) to improve and expand rules and procedures 
                covering safeguard measures;
                    (B) to ensure that safeguard measures are--
                            (i) transparent,
                            (ii) temporary,
                            (iii) degressive, and
                            (iv) subject to review and termination when 
                        no longer necessary to remedy injury and to 
                        facilitate adjustment; and
                    (C) to require notification of, and to monitor the 
                use by, WTO members of import relief actions for their 
                domestic industries.
            (8) Improvement of the wto and multilateral trade 
        agreements.--The principal negotiating objectives of the United 
        States regarding the improvement of the WTO and other 
        multilateral trade agreements are--
                    (A) to improve the operation and extend the 
                coverage of the WTO and such agreements to products, 
                sectors, and conditions of trade not adequately 
                covered; and
                    (B) to expand country participation in particular 
                agreements, where appropriate.
            (9) Dispute settlement.--The principal negotiating 
        objectives of the United States with respect to dispute 
        settlement are--
                    (A) to provide for effective and expeditious 
                dispute settlement mechanisms and procedures in any 
                trade agreement entered into under this authority; and
                    (B) to ensure that such mechanisms within the WTO 
                and agreements concluded under the auspices of the WTO 
                provide for more effective and expeditious resolution 
                of disputes and enable better enforcement of United 
                States rights.
            (10) Transparency.--The principal negotiating objective of 
        the United States regarding transparency is to obtain broader 
        application of the principle of transparency through increased 
        public access to information regarding trade issues, 
        clarification of the costs and benefits of trade policy 
        actions, and the observance of open and equitable procedures by 
        United States trading partners and within the WTO.
            (11) Developing countries.--The principal negotiating 
        objectives of the United States regarding developing countries 
        are--
                    (A) to ensure that developing countries promote 
                economic development by assuming the fullest possible 
                measure of responsibility for achieving and maintaining 
                an open international trading system by providing 
                reciprocal benefits and assuming equivalent obligations 
                with respect to their import and export practices; and
                    (B) to establish procedures for reducing 
                nonreciprocal trade benefits for the more advanced 
                developing countries.
            (12) Current account surpluses.--The principal negotiating 
        objective of the United States regarding current account 
        surpluses is to promote policies to address large and 
        persistent global current account imbalances of countries 
        (including imbalances which threaten the stability of the 
        international trading system), by imposing greater 
        responsibility on such countries to undertake policy changes 
        aimed at restoring current account equilibrium through 
        expedited implementation of trade agreements where feasible and 
        appropriate.
            (13) Access to high technology.--
                    (A) The principal negotiating objective of the 
                United States regarding access to high technology is to 
                obtain the elimination or reduction of foreign barriers 
                to, and acts, policies, or practices by foreign 
                governments which limit, equitable access by United 
                States persons to foreign-developed technology, 
                including barriers, acts, policies, or practices which 
                have the effect of--
                            (i) restricting the participation of United 
                        States persons in government-supported research 
                        and development projects;
                            (ii) denying equitable access by United 
                        States persons to government-held patents;
                            (iii) requiring the approval of government 
                        entities, or imposing other forms of government 
                        intervention, as a condition of granting 
                        licenses to United States persons by foreign 
                        persons (other than approval which may be 
                        necessary for national security purposes to 
                        control the export of critical military 
                        technology); and
                            (iv) otherwise denying equitable access by 
                        United States persons to foreign-developed 
                        technology or contributing to the inequitable 
                        flow of technology between the United States 
                        and its trading partners.
                    (B) In pursuing the negotiating objective described 
                in subparagraph (A), the United States negotiators 
                shall take into account United States Government 
                policies in licensing or otherwise making available to 
                foreign persons technology and other information 
                developed by United States laboratories.
            (14) Border taxes.--The principal negotiating objective of 
        the United States regarding border taxes is, within the WTO, to 
obtain a revision of the treatment of border adjustments for internal 
taxes in order to redress the disadvantage to countries that rely 
primarily on direct taxes rather than indirect taxes for revenue.
            (15) Regulatory competition.--The principal trade 
        negotiating objectives of the United States regarding the use 
        of government regulation or other practices by foreign 
        governments to provide a competitive advantage to their 
        domestic producers, service providers, or investors and thereby 
        reduce market access for United States goods, services, and 
        investment are--
                    (A) to ensure that government regulation and other 
                government practices do not unfairly discriminate 
                against United States goods, services, or investment; 
                and
                    (B) to prevent the use of foreign government 
                regulation and other government practices, including 
                the lowering of, or derogation from, existing labor 
                (including child labor), health and safety, or 
                environmental standards, for the purpose of attracting 
                investment or inhibiting United States exports.
        Nothing in subparagraph (B) shall be construed to authorize in 
        an implementing bill, or in an agreement subject to an 
        implementing bill, the inclusion of provisions that would 
        restrict the autonomy of the United States in these areas.
    (c) International Economic Policy Objectives Designed To Reinforce 
the Trade Agreements Process.--
            (1) In general.--It is the policy of the United States to 
        reinforce the trade agreements process by--
                    (A) fostering stability in international currency 
                markets and developing mechanisms to assure greater 
                coordination, consistency, and cooperation between 
                international trade and monetary systems and 
                institutions in order to protect against the trade 
                consequences of significant and unanticipated currency 
                movements;
                    (B) supplementing and strengthening standards for 
                protection of intellectual property rights under 
                conventions designed to protect such rights that are 
                administered by international organizations other than 
                the WTO, expanding the conventions to cover new and 
                emerging technologies, and eliminating discrimination 
                and unreasonable exceptions or preconditions to such 
                protection;
                    (C) promoting respect for workers' rights, by--
                            (i) reviewing the relationship between 
                        workers' rights and the operation of 
                        international trading systems and specific 
                        trade arrangements; and
                            (ii) seeking to establish in the 
                        International Labor Organization (referred to 
                        in this Act as the ``ILO'') a mechanism for the 
                        systematic examination of, and reporting on, 
                        the extent to which ILO members promote and 
                        enforce the freedom of association, the right 
                        to organize and bargain collectively, a 
                        prohibition on the use of forced labor, a 
                        prohibition on exploitative child labor, and a 
                        prohibition on discrimination in employment; 
                        and
                    (D) expanding the production of goods and trade in 
                goods and services to ensure the optimal use of the 
                world's resources, while seeking to protect and 
                preserve the environment and to enhance the 
                international means for doing so.
            (2) Application of procedures.--Nothing in this subsection 
        shall be construed to authorize the use of the trade agreement 
        approval procedures described in section 3 to modify United 
        States law.

SEC. 3. TRADE AGREEMENT NEGOTIATING AUTHORITY.

    (a) Agreements Regarding Tariff Barriers.--
            (1) In general.--Whenever the President determines that 1 
        or more existing duties or other import restrictions of any 
        foreign country or the United States are unduly burdening and 
        restricting the foreign trade of the United States and that the 
        purposes, policies, and objectives of this Act will be promoted 
        thereby, the President--
                    (A) may enter into trade agreements with foreign 
                countries before--
                            (i) October 1, 2001, or
                            (ii) October 1, 2005, if the authority 
                        provided by this Act is extended under 
                        subsection (c); and
                    (B) may, consistent with paragraphs (2) through 
                (5), proclaim--
                            (i) such modification or continuance of any 
                        existing duty,
                            (ii) such continuance of existing duty-free 
                        or excise treatment, or
                            (iii) such additional duties,
                as the President determines to be required or 
                appropriate to carry out any such trade agreement.
            (2) Limitations.--No proclamation may be made under 
        paragraph (1) that--
                    (A) reduces any rate of duty (other than a rate of 
                duty that does not exceed 5 percent ad valorem on the 
                date of enactment of this Act) to a rate which is less 
                than 50 percent of the rate of such duty that applies 
                on such date of enactment;
                    (B) provides for a reduction of duty on an article 
                to take effect on a date that is more than 10 years 
                after the first reduction that is proclaimed to carry 
                out a trade agreement with respect to such article; or
                    (C) increases any rate of duty above the rate that 
                applied on the date of enactment of this Act.
            (3) Aggregate reduction; exemption from staging.--
                    (A) Aggregate reduction.--Except as provided in 
                subparagraph (B), the aggregate reduction in the rate 
                of duty on any article which is in effect on any day 
                pursuant to a trade agreement entered into under 
                paragraph (1) shall not exceed the aggregate reduction 
                which would have been in effect on such day if--
                            (i) a reduction of 3 percent ad valorem or 
                        a reduction of one-tenth of the total 
                        reduction, whichever is greater, had taken 
                        effect on the effective date of the first 
                        reduction proclaimed under paragraph (1) to 
                        carry out such agreement with respect to such 
                        article; and
                            (ii) a reduction equal to the amount 
                        applicable under clause (i) had taken effect at 
                        1-year intervals after the effective date of 
                        such first reduction.
                    (B) Exemption from staging.--No staging under 
                subparagraph (A) is required with respect to a rate 
                reduction that is proclaimed under paragraph (1) for an 
                article of a kind that is not produced in the United 
                States. The United States International Trade 
                Commission shall advise the President of the identity 
                of articles that may be exempted from staging under 
                this subparagraph.
            (4) Rounding.--If the President determines that such action 
        will simplify the computation of reductions under paragraph 
        (3), the President may round an annual reduction by the lesser 
        of--
                    (A) the difference between the reduction without 
                regard to this paragraph and the next lower whole 
                number; or
                    (B) one-half of 1 percent ad valorem.
            (5) Other limitations.--A rate of duty reduction or 
        increase that may not be proclaimed by reason of paragraph (2) 
        may take effect only if a provision authorizing such reduction 
        or increase is included within an implementing bill provided 
        for under section 5 and that bill is enacted into law.
            (6) Expanded tariff proclamation authority.--
                    (A) In general.--Notwithstanding the provisions of 
                paragraphs (1) through (5), before October 1, 2001 (or 
                before October 1, 2005, if the authority provided by 
                this Act is extended under subsection (c)), and subject 
                to the consultation and layover requirements of section 
                115 of the Uruguay Round Agreements Act (19 U.S.C. 
                3524) and the notification and consultation 
                requirements of section 4(a) of this Act, the President 
                may proclaim the modification of any duty or staged 
                rate reduction of any duty set forth in Schedule XX, as 
                defined in section 2(5) of the Uruguay Round Agreements 
                Act, if the United States has agreed to such 
                modification or staged rate reduction in a negotiation 
                for the reciprocal elimination or harmonization of 
                duties, within the same tariff categories, under the 
                auspices of the World Trade Organization or as part of 
                an interim agreement leading to the formation of a 
                regional free-trade area.
                    (B) Notice required.--The modification or staged 
                rate reduction authorized under subparagraph (A) with 
                respect to any negotiation initiated after the date of 
                enactment of this Act may be proclaimed only on 
                articles in tariff categories with respect to which the 
                President has provided notice in accordance with 
                section 4(a).
            (7) Tariff modifications under uruguay round agreements 
        act.--Nothing in this subsection shall limit the authority 
        provided to the President under section 111(b) of the Uruguay 
        Round Agreements Act.
    (b) Agreements Regarding Tariff and Nontariff Barriers.--
            (1) In general.--
                    (A) Determination by president.--Whenever the 
                President determines that--
                            (i) any duty or other import restriction 
                        imposed by any foreign country or the United 
                        States or any other barrier to, or other 
                        distortion of, international trade--
                                    (I) unduly burdens or restricts the 
                                foreign trade of the United States or 
                                adversely affects the United States 
                                economy, or
                                    (II) is likely to result in such a 
                                burden, restriction, or effect, and
                            (ii) the purposes, policies, and objectives 
                        of this Act will be promoted thereby,
                the President may, before October 1, 2001 (or before 
                October 1, 2005, if the authority provided under this 
                Act is extended under subsection (c)) enter into a 
                trade agreement described in subparagraph (B).
                    (B) Trade agreement described.--A trade agreement 
                described in this subparagraph means an agreement with 
                a foreign country that provides for--
                            (i) the reduction or elimination of such 
                        duty, restriction, barrier, or other 
                        distortion; or
                            (ii) the prohibition of, or limitation on 
                        the imposition of, such barrier or other 
                        distortion.
            (2) Conditions.--A trade agreement may be entered into 
        under this subsection only if--
                    (A) such agreement makes progress in meeting the 
                applicable objectives described in section 2(b); and
                    (B) the President satisfies the conditions set 
                forth in section 4 with respect to such agreement.
            (3) Bills qualifying for trade agreement approval 
        procedures.--The provisions of section 151 of the Trade Act of 
        1974 (in this Act referred to as ``trade agreement approval 
        procedures'') apply to implementing bills submitted with 
        respect to trade agreements entered into under this subsection, 
        except that, for purposes of applying section 151(b)(1), such 
        implementing bills shall contain only--
                    (A) provisions that approve a trade agreement 
                entered into under this subsection that achieves one or 
                more of the principal negotiating objectives set forth 
                in section 2(b) and the statement of administrative 
                action (if any) proposed to implement such trade 
                agreement;
                    (B) provisions that are--
                            (i) necessary to implement such agreement; 
                        or
                            (ii) otherwise related to the 
                        implementation, enforcement, and adjustment to 
                        the effects of such trade agreement and are 
                        directly related to trade; and
                    (C) provisions necessary for purposes of complying 
                with section 252 of the Balanced Budget and Emergency 
                Deficit Control Act of 1985 in implementing the 
                applicable trade agreement.
    (c) Extension Procedures.--
            (1) In general.--Except as provided in section 5(b)--
                    (A) subsections (a) and (b) shall apply with 
                respect to agreements entered into before October 1, 
                2001; and
                    (B) subsections (a) and (b) shall be extended to 
                apply with respect to agreements entered into on or 
                after October 1, 2001, and before October 1, 2005, if 
                (and only if)--
                            (i) the President requests such extension 
                        under paragraph (2); and
                            (ii) neither House of Congress adopts an 
                        extension disapproval resolution under 
                        paragraph (5) before October 1, 2001.
            (2) Report to congress by the president.--If the President 
        is of the opinion that the authority under subsections (a) and 
        (b) should be extended, the President shall submit to Congress, 
        not later than July 1, 2001, a written report that contains a 
        request for such extension, together with--
                    (A) a description of all trade agreements that have 
                been negotiated under subsections (a) and (b) and, 
                where applicable, the anticipated schedule for 
                submitting such agreements to Congress for approval;
                    (B) a description of the progress that has been 
                made in negotiations to achieve the purposes, policies, 
                and objectives set out in section 2 (a) and (b) of this 
                Act, and a statement that such progress justifies the 
continuation of negotiations; and
                    (C) a statement of the reasons why the extension is 
                needed to complete the negotiations.
            (3) Report to congress by the 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 Congress under paragraph (2). 
        The Advisory Committee shall submit to Congress as soon as 
        practicable, but not later than August 1, 2001, a written 
        report that contains--
                    (A) its views regarding the progress that has been 
                made in negotiations to achieve the purposes, policies, 
                and objectives of this Act; and
                    (B) a statement of its views, and the reasons 
                therefor, regarding whether the extension requested 
                under paragraph (2) should be approved or disapproved.
            (4) Reports may be classified.--The reports submitted to 
        Congress under paragraphs (2) and (3), or any portion of the 
        reports, may be classified to the extent the President 
        determines appropriate.
            (5) Extension disapproval resolutions.--
                    (A) In general.--For purposes of this subsection, 
                the term ``extension disapproval resolution'' means a 
                resolution of either House of Congress, the sole matter 
                after the resolving clause of which is as follows: 
                ``That the ____ disapproves the request of the 
                President for an extension, under section 3(c) of the 
                Reciprocal Trade Agreements Act of 1997, of 
                ________________ after September 30, 2001.'', with the 
                first blank space being filled with the name of the 
                resolving House of Congress and the second blank space 
                being filled with one or both of the following phrases: 
                ``the tariff proclamation authority provided under 
                section 3(a) of the Reciprocal Trade Agreements Act of 
                1997'' or ``the trade agreement approval procedures 
                provided under section 3(b) of the Reciprocal Trade 
                Agreements Act of 1997''.
                    (B) Introduction and referral.--Extension 
                disapproval resolutions--
                            (i) may be introduced in either House of 
                        Congress by any member of such House;
                            (ii) shall be jointly referred, in the 
                        House of Representatives, to the Committee on 
                        Ways and Means and the Committee on Rules; and
                            (iii) shall be referred, in the Senate, to 
                        the Committee on Finance.
                    (C) Floor consideration.--The provisions of 
                sections 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.
                    (D) Committee action required.--It is not in order 
                for--
                            (i) the Senate to consider any extension 
                        disapproval resolution not reported by the 
                        Committee on Finance;
                            (ii) 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
                            (iii) either House of Congress to consider 
                        an extension disapproval resolution after 
                        September 30, 2001.

SEC. 4. NOTICE AND CONSULTATIONS.

    (a) Notice and Consultation Before Negotiation.--With respect to 
any agreement subject to the provisions of section 3 (a) or (b), the 
President shall--
            (1) not later than 90 calendar days before initiating 
        negotiations, provide written notice to Congress regarding--
                    (A) the President's intent to initiate the 
                negotiations;
                    (B) the date the President intends to initiate such 
                negotiations;
                    (C) the specific United States objectives for the 
                negotiations; and
                    (D) whether the President intends to seek an 
                agreement or changes to an existing agreement;
            (2) consult regarding the negotiations--
                    (A) before and promptly after submission of the 
                notice described in paragraph (1), with the Committee 
                on Finance of the Senate, the Committee on Ways and 
                Means of the House of Representatives, and such other 
                committees of the House and Senate as the President 
deems appropriate; and
                    (B) with any other committee that requests 
                consultations in writing; and
            (3) consult with the appropriate industry sector advisory 
        groups established under section 135 of the Trade Act of 1974 
        before initiating negotiations.
    (b) Consultation With Congress Before Agreement Entered Into.--
            (1) Consultation.--Before entering into any trade agreement 
        under section 3 (a) or (b), the President shall consult with--
                    (A) the Committee on Ways and Means of the House of 
                Representatives and the Committee on Finance of the 
                Senate; and
                    (B) each other committee of the House and the 
                Senate, and each joint committee of Congress, which has 
                jurisdiction over legislation involving subject matters 
                that would be affected by the trade agreement.
            (2) Scope.--The consultation described in paragraph (1) 
        shall include consultation with respect to--
                    (A) the nature of the agreement;
                    (B) how and to what extent the agreement will 
                achieve the applicable purposes, policies, and 
                objectives of this Act;
                    (C) where applicable, the implementation of the 
                agreement under section 5, including whether the 
                agreement includes subject matter for which 
                supplemental implementing legislation may be required 
                which is not subject to trade agreement approval 
                procedures; and
                    (D) any other agreement the President has entered 
                into or intends to enter into with the country or 
                countries in question.
    (c) Advisory Committee Reports.--The report required under section 
135(e)(1) of the Trade Act of 1974 regarding any trade agreement 
entered into under section 3(b) of this Act shall be provided to the 
President, Congress, and the United States Trade Representative not 
later than 30 calendar days after the date on which the President 
notifies Congress under section 5(a)(1)(A) of the President's intention 
to enter into the agreement.
    (d) Consultation Before Agreement Initialed.--In the course of 
negotiations conducted under this Act, the United States Trade 
Representative shall consult closely and on a timely basis (including 
immediately before initialing an agreement) with, and keep fully 
apprised of the negotiations, the congressional advisers for trade 
policy and negotiations appointed under section 161 of the Trade Act of 
1974 (19 U.S.C. 2211), the Committee on Finance of the Senate, and the 
Committee on Ways and Means of the House of Representatives.

SEC. 5. IMPLEMENTATION OF TRADE AGREEMENTS.

    (a) In General.--
            (1) Notification and submission.--Any agreement entered 
        into under section 3(b) shall enter into force with respect to 
        the United States if (and only if)--
                    (A) the President, at least 90 calendar days before 
                the day on which the President enters into the trade 
                agreement, notifies the House of Representatives and 
                the Senate of the President's intention to enter into 
                the agreement, and promptly thereafter publishes notice 
                of such intention in the Federal Register;
                    (B) within 60 calendar days after entering into the 
                agreement, the President submits to Congress a 
                description of those changes to existing laws that the 
                President considers would be required in order to bring 
                the United States into compliance with the agreement;
                    (C) after entering into the agreement, the 
                President submits a copy of the final legal text of the 
                agreement, together with--
                            (i) a draft of an implementing bill 
                        described in section 3(b)(3);
                            (ii) a statement of any administrative 
                        action proposed to implement the trade 
                        agreement; and
                            (iii) the supporting information described 
                        in paragraph (2); and
                    (D) the implementing bill is enacted into law.
            (2) Supporting information.--The supporting information 
        required under paragraph (1)(C)(iii) consists of--
                    (A) an explanation as to how the implementing bill 
                and proposed administrative action will change or 
                affect existing law; and
                    (B) a statement--
                            (i) asserting that the agreement makes 
                        progress in achieving the applicable purposes, 
                        policies, and objectives of this Act; and
                            (ii) 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 clause (i), 
                                and why and to what extent the 
                                agreement does not achieve other 
                                applicable purposes, policies, and 
                                objectives;
                                    (II) whether and how the agreement 
                                changes provisions of an agreement 
                                previously negotiated;
                                    (III) how the agreement serves the 
                                interests of United States commerce;
                                    (IV) why the implementing bill 
                                qualifies for trade agreement approval 
                                procedures under section 3(b)(3); and
                                    (V) any proposed administrative 
                                action.
            (3) Reciprocal benefits.--To ensure that a foreign country 
        which receives benefits under a trade agreement entered into 
        under section 3 (a) or (b) is subject to the obligations 
        imposed by such agreement, the President shall recommend to 
        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.
    (b) Limitations on Trade Agreement Approval Procedures.--
            (1) Disapproval of the negotiation.--The trade agreement 
        approval procedures shall not apply to any implementing bill 
        that contains a provision approving any trade agreement that is 
        entered into under section 3(b) with any foreign country if the 
        Committee on Finance of the Senate and the Committee on Ways 
        and Means of the House of Representatives disapprove of the 
        negotiation of the agreement before the close of the 90-
        calendar day period that begins on the date notice is provided 
        under section 4(a)(1) with respect to the negotiation of such 
        agreement.
            (2) For lack of notice or consultations.--
                    (A) In general.--The trade agreement approval 
                procedures shall not apply to any implementing bill 
                submitted with respect to a trade agreement entered 
                into under section 3(b) if during the 60-day period 
                beginning on the date that one House of Congress agrees 
                to a procedural disapproval resolution for lack of 
                notice or consultations with respect to that trade 
                agreement, the other House separately agrees to a 
                procedural disapproval resolution with respect to that 
                agreement.
                    (B) Procedural disapproval resolution.--For 
                purposes of this paragraph, the term ``procedural 
                disapproval resolution'' means a resolution of either 
                House of Congress, the sole matter after the resolving 
                clause of which is as follows: ``That the President has 
                failed or refused to notify or consult (as the case may 
                be) with Congress in accordance with sections 4 and 5 
                of the Reciprocal Trade Agreements Act of 1997 with 
                respect to ____ and, therefore, the trade agreement 
                approval procedures set forth in section 3(b) of that 
                Act shall not apply to any implementing bill submitted 
                with respect to that trade agreement.'', with the blank 
                space being filled with a description of the trade 
                agreement with respect to which the President is 
                considered to have failed or refused to notify or 
                consult.
                    (C) Computation of certain periods of time.--The 
                60-day period of time described in subparagraph (A) 
                shall be computed without regard to--
                            (i) 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
                            (ii) any Saturday and Sunday, not excluded 
                        under clause (i), when either House of Congress 
                        is not in session.
            (3) Procedures for considering procedural disapproval 
        resolutions.--
                    (A) Procedural disapproval resolutions.--Procedural 
                disapproval resolutions--
                            (i) in the House of Representatives--
                                    (I) 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;
                                    (II) shall be jointly referred to 
                                the Committee on Ways and Means and the 
                                Committee on Rules; and
                                    (III) may not be amended by either 
                                Committee; and
                            (ii) in the Senate shall be original 
                        resolutions of the Committee on Finance.
                    (B) 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.
                    (C) Committee action required.--
                            (i) House of representatives.--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.
                            (ii) Senate.--It is not in order for the 
                        Senate to consider any procedural disapproval 
                        resolution not reported by the Committee on 
                        Finance.
    (c) Rules of House of Representatives and Senate.--Subsection (b) 
of this section and section 3(c) are enacted by Congress--
            (1) as an exercise of the rulemaking power of the House of 
        Representatives and the Senate, respectively, and as such are 
        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. 6. TREATMENT OF CERTAIN TRADE AGREEMENTS.

    (a) In General.--Notwithstanding section 3(a)(6)(B) and section 
3(b)(2), the provisions of section 4(a) shall not apply with respect to 
agreements that result from--
            (1) negotiations under the auspices of the World Trade 
        Organization regarding trade in information technology 
        products;
            (2) negotiations or work programs initiated pursuant to a 
        Uruguay Round Agreement, as defined in section 2 of the Uruguay 
        Round Agreements Act; or
            (3) negotiations with Chile,
that were commenced before the date of enactment of this Act, and the 
applicability of trade agreement approval procedures with respect to 
such agreements shall be determined without regard to the requirements 
of section 4(a).
    (b) Procedural Disapproval Resolution Not In Order.--A procedural 
disapproval resolution under section 5(b) shall not be in order with 
respect to an agreement described in subsection (a) of this section 
based on a failure or refusal to comply with section 4(a).

SEC. 7. CONFORMING AMENDMENTS.

    (a) In General.--Title I of the Trade Act of 1974 (19 U.S.C. 2111 
et seq.) is amended as follows:
            (1) Implementing bill.--
                    (A) Section 151(b)(1) (19 U.S.C. 2191(b)(1)) is 
                amended--
                            (i) by striking ``section 1103(a)(1) of the 
                        Omnibus Trade and Competitiveness Act of 1988, 
                        or section 282 of the Uruguay Round Agreements 
                        Act'' and inserting ``section 282 of the 
                        Uruguay Round Agreements Act, or section 
                        5(a)(1) of the Reciprocal Trade Agreements Act 
                        of 1997''; and
                            (ii) by adding after subparagraph (C) the 
                        following flush sentence:
        ``For purposes of applying this paragraph to implementing bills 
        submitted with respect to trade agreements entered into under 
        section 3(b) of the Reciprocal Trade Agreements Act of 1997, 
        subparagraphs (A), (B), and (C) of section 3(b)(3) of such Act 
        shall be substituted for subparagraphs (A), (B), and (C) of 
        this paragraph.''.
                    (B) Section 151(c)(1) (19 U.S.C. 2191(c)(1)) is 
                amended by striking ``or section 282 of the Uruguay 
                Round Agreements Act'' and inserting ``, section 282 of 
                the Uruguay Round Agreements Act, or section 5(a)(1) of 
                the Reciprocal Trade Agreements Act of 1997''.
            (2) Advice from international trade commission.--Section 
        131 (19 U.S.C. 2151) is amended--
                    (A) in subsection (a)--
                            (i) in paragraph (1), by striking ``section 
                        123 of this Act or section 1102 (a) or (c) of 
                        the Omnibus Trade and Competitiveness Act of 
                        1988,'' and inserting ``section 123 of this Act 
                        or section 3 (a) or (b) of the Reciprocal Trade 
                        Agreements Act of 1997,''; and
                            (ii) in paragraph (2), by striking 
                        ``section 1102 (b) or (c) of the Omnibus Trade 
                        and Competitiveness Act of 1988'' and inserting 
                        ``section 3(b) of the Reciprocal Trade 
                        Agreements Act of 1997'';
                    (B) in subsection (b), by striking ``section 
                1102(a)(3)(A)'' and inserting ``section 3(a)(3)(A) of 
                the Reciprocal Trade Agreements Act of 1997'' before 
                the end period; and
                    (C) in subsection (c), by striking ``section 1102 
                of the Omnibus Trade and Competitiveness Act of 1988,'' 
                and inserting ``section 3 of the Reciprocal Trade 
                Agreements Act of 1997,''.
            (3) Hearings and advice.--Sections 132, 133(a), and 134(a) 
        (19 U.S.C. 2152, 2153(a), and 2154(a)) are each amended by 
        striking ``section 1102 of the Omnibus Trade and 
        Competitiveness Act of 1988,'' each place it appears and 
        inserting ``section 3 of the Reciprocal Trade Agreements Act of 
        1997,''.
            (4) Prerequisites for offers.--Section 134(b) (19 U.S.C. 
        2154(b)) is amended by striking ``section 1102 of the Omnibus 
        Trade and Competitiveness Act of 1988'' and inserting ``section 
        3 of the Reciprocal Trade Agreements Act of 1997''.
            (5) Advice from private and public sectors.--Section 135 
        (19 U.S.C. 2155) is amended--
                    (A) in subsection (a)(1)(A), by striking ``section 
                1102 of the Omnibus Trade and Competitiveness Act of 
                1988'' and inserting ``section 3 of the Reciprocal 
                Trade Agreements Act of 1997'';
                    (B) in subsection (e)(1)--
                            (i) by striking ``section 1102 of the 
                        Omnibus Trade and Competitiveness Act of 1988'' 
                        each place it appears and inserting ``section 3 
                        of the Reciprocal Trade Agreements Act of 
                        1997''; and
                            (ii) by striking ``section 1103(a)(1)(A) of 
                        such Act of 1988'' and inserting ``section 
                        5(a)(1)(A) of the Reciprocal Trade Agreements 
                        Act of 1997''; and
                    (C) in subsection (e)(2), by striking ``the 
                applicable overall and principal negotiating objectives 
                set forth in section 1101 of the Omnibus Trade and 
                Competitiveness Act of 1988'' and inserting ``the 
                purposes, policies, and objectives set forth in section 
                2 (a) and (b) of the Reciprocal Trade Agreements Act of 
                1997''.
            (6) Transmission of agreements to congress.--Section 162(a) 
        (19 U.S.C. 2212(a)) is amended by striking ``or under section 
        1102 of the Omnibus Trade and Competitiveness Act of 1988'' and 
        inserting ``or under section 3 of the Reciprocal Trade 
        Agreements Act of 1997''.
    (b) Application of Certain Provisions.--For purposes of applying 
sections 125, 126, and 127 of the Trade Act of 1974 (19 U.S.C. 2135, 
2136(a), and 2137)--
            (1) any trade agreement entered into under section 3 shall 
        be treated as an agreement entered into under section 101 or 
        102, as appropriate, of the Trade Act of 1974 (19 U.S.C. 2111 
        or 2112); and
            (2) any proclamation or Executive order issued pursuant to 
        a trade agreement entered into under section 3 shall be treated 
        as a proclamation or Executive order issued pursuant to a trade 
        agreement entered into under section 102 of the Trade Act of 
        1974.

SEC. 8. TRADE ADJUSTMENT ASSISTANCE.

    (a) Authorization of Appropriations.--
            (1) In general.--Section 245 of the Trade Act of 1974 (19 
        U.S.C. 2317) is amended--
                    (A) in subsection (a), by striking ``1993, 1994, 
                1995, 1996, 1997, and'' and inserting ``1999, and 
                2000,'' after ``1998,''; and
                    (B) in subsection (b), by striking ``1994, 1995, 
                1996, 1997, and'' and inserting ``1999, and 2000,'' 
                after ``1998,''.
            (2) Assistance for firms.--Section 256(b) of the Trade Act 
        of 1974 (19 U.S.C. 2346(b)) is amended by striking ``1993, 
        1994, 1995, 1996, 1997, and'' and inserting ``, 1999, and 
        2000,'' after ``1998''.
    (b) Termination.--Section 285(c) of the Trade Act of 1974 (19 
U.S.C. 2271 note preceding) is amended--
            (1) in paragraph (1), by striking ``1998'' and inserting 
        ``2000''; and
            (2) in paragraph (2)(A), by striking ``the day that is'' 
        and all that follows through ``effective'' and inserting 
        ``September 30, 2000''.

SEC. 9. FEES FOR CERTAIN CUSTOMS SERVICES.

    Section 13031(b)(1)(C) of the Consolidated Omnibus Budget 
Reconciliation Act of 1985 (19 U.S.C. 58c(b)(1)(C)) is amended by 
striking ``to fiscal years'' and all that follows through ``1997'' and 
inserting ``before September 1, 1998''.

SEC. 10. DEFINITIONS.

    In this Act:
            (1) Distortion.--The term ``distortion'' includes, but is 
        not limited to, a subsidy.
            (2) Trade.--The term ``trade'' includes, but is not limited 
        to--
                    (A) trade in both goods and services; and
                    (B) foreign investment by United States persons, 
                especially if such investment has implications for 
                trade in goods and services.
            (3) Uruguay round agreements.-- The term ``Uruguay Round 
        Agreements'' has the meaning given such term in section 2(7) of 
        the Uruguay Round Agreements Act (19 U.S.C. 3501(7).
            (4) World trade organization.--The term ``World Trade 
        Organization'' means the organization established pursuant to 
        the WTO Agreement.
            (5) WTO agreement.--The term ``WTO Agreement'' means the 
        Agreement Establishing the World Trade Organization entered 
        into on April 15, 1994.
            (6) WTO and wto member.--The terms ``WTO'' and ``WTO 
        member'' have the meanings given those terms in section 2 of 
        the Uruguay Round Agreements Act (19 U.S.C. 3501).`