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
II

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.

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 ‘‘Reciprocal Trade

5 Agreements Act of 1997’’.
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1 SEC. 2. TRADE NEGOTIATING OBJECTIVES OF THE UNITED

2 STATES.

3 (a) STATEMENT OF PURPOSES.—The purposes of

4 this Act are to achieve, through trade agreements afford5 ing mutual benefits—

6 (1) more open, equitable, and reciprocal market

7 access for United States goods, services, and invest8 ment;

9 (2) the reduction or elimination of barriers and

10 other trade-distorting policies and practices;

11 (3) a more effective system of international

12 trading disciplines and procedures; and

13 (4) economic growth, higher living standards,

14 and full employment in the United States, and eco15 nomic growth and development among United States

16 trading partners.

17 (b) PRINCIPAL TRADE NEGOTIATING OBJECTIVES.—

18 The principal trade negotiating objectives of the United

19 States for agreements subject to the provisions of section

20 3 include the following:

21 (1) REDUCTION OF BARRIERS TO TRADE IN

22 GOODS.—The principal negotiating objective of the

23 United States regarding barriers to trade in goods

24 is to obtain competitive opportunities for United

25 States exports in foreign markets substantially

26 equivalent to the opportunities afforded foreign ex-
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1 ports to United States markets, including the reduc2 tion or elimination of tariff and nontariff trade bar3 riers, including—

4 (A) tariff and nontariff disparities remain5 ing from previous rounds of multilateral trade

6 negotiations that have put United States ex7 ports at a competitive disadvantage in world

8 markets;

9 (B) measures identified in the annual re10 port prepared under section 181 of the Trade

11 Act of 1974 (19 U.S.C. 2241); and

12 (C) tariff elimination for products identi13 fied in section 111(b) of the Uruguay Round

14 Agreements Act (19 U.S.C. 3521(b)) and the

15 accompanying Statement of Administrative Ac16 tion related to that section.

17 (2) TRADE IN SERVICES.—

18 (A) The principal negotiating objectives of

19 the United States regarding trade in services

20 are—

21 (i) to reduce or eliminate barriers to,

22 or other distortions of, international trade

23 in services, including regulatory and other

24 barriers that deny national treatment or

25 unreasonably restrict the establishment
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1 and operation of service suppliers in for2 eign markets; and

3 (ii) to develop internationally agreed

4 rules, including dispute settlement proce5 dures, that—

6 (I) are consistent with the com7 mercial policies of the United States,

8 and

9 (II) will reduce or eliminate such

10 barriers or distortions, and help en11 sure fair, equitable opportunities for

12 foreign markets.

13 (B) In pursuing the negotiating objectives

14 described in subparagraph (A), United States

15 negotiators shall take into account legitimate

16 United States domestic objectives, including

17 protection of legitimate health, safety, essential

18 security, environmental, consumer, and employ19 ment opportunity interests. The preceding sen20 tence shall not be construed to authorize any

21 modification of United States law.

22 (3) FOREIGN INVESTMENT.—

23 (A) The principal negotiating objectives of

24 the United States regarding foreign investment

25 are—
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1 (i) to reduce or eliminate artificial or

2 trade-distorting barriers to foreign invest3 ment, to expand the principle of national

4 treatment, and to reduce unreasonable bar5 riers to establishment; and

6 (ii) to develop internationally agreed

7 rules through the negotiation of investment

8 agreements, including dispute settlement

9 procedures, that—

10 (I) will help ensure a free flow of

11 foreign investment, and

12 (II) will reduce or eliminate the

13 trade distortive effects of certain

14 trade-related investment measures.

15 (B) In pursuing the negotiating objectives

16 described in subparagraph (A), United States

17 negotiators shall take into account legitimate

18 United States domestic objectives, including

19 protection of legitimate health, safety, essential

20 security, environmental, consumer, and employ21 ment opportunity interests. The preceding sen22 tence shall not be construed to authorize any

23 modification of United States law.
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1 (4) INTELLECTUAL PROPERTY.—The principal

2 negotiating objectives of the United States regarding

3 intellectual property are—

4 (A) to further promote adequate and effec5 tive protection of intellectual property rights,

6 by—

7 (i) seeking the enactment and effec8 tive enforcement by foreign countries of

9 laws that—

10 (I) recognize and adequately pro11 tect intellectual property, including

12 copyrights, patents, trademarks, semi13 conductor chip layout designs, and

14 trade secrets, and

15 (II) provide protection against

16 unfair competition;

17 (ii) accelerating and ensuring the full

18 implementation of the Agreement on

19 Trade-Related Aspects of Intellectual

20 Property Rights referred to in section

21 101(d)(15) of the Uruguay Round Agree22 ments Act (19 U.S.C. 3511(d)(15)), and

23 achieving improvements in the standards

24 of that Agreement;
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1 (iii) providing strong protection for

2 new and emerging technologies and new

3 methods of transmitting and distributing

4 products embodying intellectual property;

5 (iv) preventing or eliminating dis6 crimination with respect to matters affect7 ing the availability, acquisition, scope,

8 maintenance, use, and enforcement of in9 tellectual property rights; and

10 (v) providing for strong enforcement

11 of intellectual property rights through ac12 cessible, expeditious, and effective civil, ad13 ministrative, and criminal enforcement

14 mechanisms;

15 (B) to secure fair, equitable, and non16 discriminatory market access opportunities for

17 United States persons that rely on intellectual

18 property protection; and

19 (C) to recognize that the inclusion in the

20 WTO of—

21 (i) adequate and effective substantive

22 norms and standards for the protection

23 and enforcement of intellectual property

24 rights, and
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1 (ii) dispute settlement provisions and

2 enforcement procedures,

3 is without prejudice to other complementary ini4 tiatives undertaken in other international orga5 nizations.

6 (5) AGRICULTURE.—The principal negotiating

7 objectives of the United States with respect to agri8 culture are, in addition to those set forth in section

9 1123(b) of the Food Security Act of 1985 (7 U.S.C.

10 1736r(b)), to achieve, on an expedited basis to the

11 maximum extent feasible, more open and fair condi12 tions of trade in agricultural commodities by—

13 (A) developing, strengthening, and clarify14 ing rules for agricultural trade, including dis15 ciplines on restrictive or trade-distorting import

16 and export practices such as those that would

17 impact perishable or cyclical products;

18 (B) increasing United States agricultural

19 exports by eliminating barriers to trade (includ20 ing transparent and nontransparent barriers)

21 and reducing or eliminating the subsidization of

22 agricultural production consistent with the

23 United States policy of agricultural stabilization

24 in cyclical and unpredictable markets;
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1 (C) creating a free and more open world

2 agricultural trading system by resolving ques3 tions pertaining to export and other trade-dis4 torting subsidies, market pricing, and market

5 access;

6 (D) eliminating or reducing substantially

7 other specific constraints to fair trade and more

8 open market access, such as tariffs, quotas, and

9 other nontariff practices; and

10 (E) developing, strengthening, and clarify11 ing rules that address practices that unfairly

12 decrease United States market access opportu13 nities or distort agricultural markets to the det14 riment of the United States, including—

15 (i) unfair or trade-distorting activities

16 of state trading enterprises and other ad17 ministrative mechanisms, including lack of

18 price transparency;

19 (ii) unjustified restrictions or commer20 cial requirements affecting new tech21 nologies, including biotechnology;

22 (iii) unjustified sanitary or

23 phytosanitary restrictions;

24 (iv) other unjustified technical bar25 riers to trade; and
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1 (v) restrictive rules in the administra2 tion of tariff-rate quotas.

3 (6) UNFAIR TRADE PRACTICES.—The principal

4 negotiating objectives of the United States with re5 spect to unfair trade practices are—

6 (A) to enhance the operation and effective7 ness of the relevant Uruguay Round Agree8 ments and any other agreements designed to

9 define, deter, discourage the persistent use of,

10 and otherwise discipline, unfair trade practices

11 having adverse trade effects, including forms of

12 subsidy and dumping not adequately dis13 ciplined, such as resource input subsidies, diver14 sionary dumping, dumped or subsidized inputs,

15 third country dumping, circumvention of anti16 dumping or countervailing duty orders, and ex17 port targeting practices; and

18 (B) to obtain the enforcement of WTO

19 rules against—

20 (i) trade-distorting practices of state

21 trading enterprises, and

22 (ii) the acts, practices, or policies of

23 any foreign government which, as a prac24 tical matter, unreasonably require that—
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1 (I) substantial direct investment

2 in the foreign country be made,

3 (II) intellectual property be li4 censed to the foreign country or to

5 any firm of the foreign country, or

6 (III) other collateral concessions

7 be made,

8 as a condition for the importation of any

9 product or service of the United States

10 into the foreign country or as a condition

11 for carrying on business in the foreign

12 country.

13 (7) SAFEGUARDS.—The principal negotiating

14 objectives of the United States regarding safeguards

15 are—

16 (A) to improve and expand rules and pro17 cedures covering safeguard measures;

18 (B) to ensure that safeguard measures

19 are—

20 (i) transparent,

21 (ii) temporary,

22 (iii) degressive, and

23 (iv) subject to review and termination

24 when no longer necessary to remedy injury

25 and to facilitate adjustment; and
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1 (C) to require notification of, and to mon2 itor the use by, WTO members of import relief

3 actions for their domestic industries.

4 (8) IMPROVEMENT OF THE WTO AND MULTI5 LATERAL TRADE AGREEMENTS.—The principal ne6 gotiating objectives of the United States regarding

7 the improvement of the WTO and other multilateral

8 trade agreements are—

9 (A) to improve the operation and extend

10 the coverage of the WTO and such agreements

11 to products, sectors, and conditions of trade not

12 adequately covered; and

13 (B) to expand country participation in par14 ticular agreements, where appropriate.

15 (9) DISPUTE SETTLEMENT.—The principal ne16 gotiating objectives of the United States with respect

17 to dispute settlement are—

18 (A) to provide for effective and expeditious

19 dispute settlement mechanisms and procedures

20 in any trade agreement entered into under this

21 authority; and

22 (B) to ensure that such mechanisms within

23 the WTO and agreements concluded under the

24 auspices of the WTO provide for more effective
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1 and expeditious resolution of disputes and en2 able better enforcement of United States rights.

3 (10) TRANSPARENCY.—The principal negotiat4 ing objective of the United States regarding trans5 parency is to obtain broader application of the prin6 ciple of transparency through increased public access

7 to information regarding trade issues, clarification of

8 the costs and benefits of trade policy actions, and

9 the observance of open and equitable procedures by

10 United States trading partners and within the WTO.

11 (11) DEVELOPING COUNTRIES.—The principal

12 negotiating objectives of the United States regarding

13 developing countries are—

14 (A) to ensure that developing countries

15 promote economic development by assuming the

16 fullest possible measure of responsibility for

17 achieving and maintaining an open inter18 national trading system by providing reciprocal

19 benefits and assuming equivalent obligations

20 with respect to their import and export prac21 tices; and

22 (B) to establish procedures for reducing

23 nonreciprocal trade benefits for the more ad24 vanced developing countries.
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1 (12) CURRENT ACCOUNT SURPLUSES.—The

2 principal negotiating objective of the United States

3 regarding current account surpluses is to promote

4 policies to address large and persistent global cur5 rent account imbalances of countries (including im6 balances which threaten the stability of the inter7 national trading system), by imposing greater re8 sponsibility on such countries to undertake policy

9 changes aimed at restoring current account equi10 librium through expedited implementation of trade

11 agreements where feasible and appropriate.

12 (13) ACCESS TO HIGH TECHNOLOGY.—

13 (A) The principal negotiating objective of

14 the United States regarding access to high

15 technology is to obtain the elimination or reduc16 tion of foreign barriers to, and acts, policies, or

17 practices by foreign governments which limit,

18 equitable access by United States persons to

19 foreign-developed technology, including barriers,

20 acts, policies, or practices which have the effect

21 of—

22 (i) restricting the participation of

23 United States persons in government-sup24 ported research and development projects;
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1 (ii) denying equitable access by Unit2 ed States persons to government-held pat3 ents;

4 (iii) requiring the approval of govern5 ment entities, or imposing other forms of

6 government intervention, as a condition of

7 granting licenses to United States persons

8 by foreign persons (other than approval

9 which may be necessary for national secu10 rity purposes to control the export of criti11 cal military technology); and

12 (iv) otherwise denying equitable access

13 by United States persons to foreign-devel14 oped technology or contributing to the in15 equitable flow of technology between the

16 United States and its trading partners.

17 (B) In pursuing the negotiating objective

18 described in subparagraph (A), the United

19 States negotiators shall take into account Unit20 ed States Government policies in licensing or

21 otherwise making available to foreign persons

22 technology and other information developed by

23 United States laboratories.

24 (14) BORDER TAXES.—The principal negotiat25 ing objective of the United States regarding border
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1 taxes is, within the WTO, to obtain a revision of

2 the treatment of border adjustments for internal

3 taxes in order to redress the disadvantage to coun4 tries that rely primarily on direct taxes rather than

5 indirect taxes for revenue.

6 (15) REGULATORY COMPETITION.—The prin7 cipal trade negotiating objectives of the United

8 States regarding the use of government regulation or

9 other practices by foreign governments to provide a

10 competitive advantage to their domestic producers,

11 service providers, or investors and thereby reduce

12 market access for United States goods, services, and

13 investment are—

14 (A) to ensure that government regulation

15 and other government practices do not unfairly

16 discriminate against United States goods, serv17 ices, or investment; and

18 (B) to prevent the use of foreign govern19 ment regulation and other government prac20 tices, including the lowering of, or derogation

21 from, existing labor (including child labor),

22 health and safety, or environmental standards,

23 for the purpose of attracting investment or in24 hibiting United States exports.
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1 Nothing in subparagraph (B) shall be construed to

2 authorize in an implementing bill, or in an agree3 ment subject to an implementing bill, the inclusion

4 of provisions that would restrict the autonomy of the

5 United States in these areas.

6 (c) INTERNATIONAL ECONOMIC POLICY OBJECTIVES

7 DESIGNED TO REINFORCE THE TRADE AGREEMENTS

8 PROCESS.—

9 (1) IN GENERAL.—It is the policy of the United

10 States to reinforce the trade agreements process

11 by—

12 (A) fostering stability in international cur13 rency markets and developing mechanisms to

14 assure greater coordination, consistency, and

15 cooperation between international trade and

16 monetary systems and institutions in order to

17 protect against the trade consequences of sig18 nificant and unanticipated currency movements;

19 (B) supplementing and strengthening

20 standards for protection of intellectual property

21 rights under conventions designed to protect

22 such rights that are administered by inter23 national organizations other than the WTO, ex24 panding the conventions to cover new and

25 emerging technologies, and eliminating discrimi-
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1 nation and unreasonable exceptions or pre2 conditions to such protection;

3 (C) promoting respect for workers’ rights,

4 by—

5 (i) reviewing the relationship between

6 workers’ rights and the operation of inter7 national trading systems and specific trade

8 arrangements; and

9 (ii) seeking to establish in the Inter10 national Labor Organization (referred to in

11 this Act as the ‘‘ILO’’) a mechanism for

12 the systematic examination of, and report13 ing on, the extent to which ILO members

14 promote and enforce the freedom of asso15 ciation, the right to organize and bargain

16 collectively, a prohibition on the use of

17 forced labor, a prohibition on exploitative

18 child labor, and a prohibition on discrimi19 nation in employment; and

20 (D) expanding the production of goods and

21 trade in goods and services to ensure the opti22 mal use of the world’s resources, while seeking

23 to protect and preserve the environment and to

24 enhance the international means for doing so.
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1 (2) APPLICATION OF PROCEDURES.—Nothing

2 in this subsection shall be construed to authorize the

3 use of the trade agreement approval procedures de4 scribed in section 3 to modify United States law.

5 SEC. 3. TRADE AGREEMENT NEGOTIATING AUTHORITY.

6 (a) AGREEMENTS REGARDING TARIFF BARRIERS.—

7 (1) IN GENERAL.—Whenever the President de8 termines that 1 or more existing duties or other im9 port restrictions of any foreign country or the Unit10 ed States are unduly burdening and restricting the

11 foreign trade of the United States and that the pur12 poses, policies, and objectives of this Act will be pro13 moted thereby, the President—

14 (A) may enter into trade agreements with

15 foreign countries before—

16 (i) October 1, 2001, or

17 (ii) October 1, 2005, if the authority

18 provided by this Act is extended under

19 subsection (c); and

20 (B) may, consistent with paragraphs (2)

21 through (5), proclaim—

22 (i) such modification or continuance

23 of any existing duty,

24 (ii) such continuance of existing duty25 free or excise treatment, or
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1 (iii) such additional duties,

2 as the President determines to be required or

3 appropriate to carry out any such trade agree4 ment.

5 (2) LIMITATIONS.—No proclamation may be

6 made under paragraph (1) that—

7 (A) reduces any rate of duty (other than a

8 rate of duty that does not exceed 5 percent ad

9 valorem on the date of enactment of this Act)

10 to a rate which is less than 50 percent of the

11 rate of such duty that applies on such date of

12 enactment;

13 (B) provides for a reduction of duty on an

14 article to take effect on a date that is more

15 than 10 years after the first reduction that is

16 proclaimed to carry out a trade agreement with

17 respect to such article; or

18 (C) increases any rate of duty above the

19 rate that applied on the date of enactment of

20 this Act.

21 (3) AGGREGATE REDUCTION; EXEMPTION FROM

22 STAGING.—

23 (A) AGGREGATE REDUCTION.—Except as

24 provided in subparagraph (B), the aggregate re25 duction in the rate of duty on any article which
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1 is in effect on any day pursuant to a trade

2 agreement entered into under paragraph (1)

3 shall not exceed the aggregate reduction which

4 would have been in effect on such day if—

5 (i) a reduction of 3 percent ad valo6 rem or a reduction of one-tenth of the total

7 reduction, whichever is greater, had taken

8 effect on the effective date of the first re9 duction proclaimed under paragraph (1) to

10 carry out such agreement with respect to

11 such article; and

12 (ii) a reduction equal to the amount

13 applicable under clause (i) had taken effect

14 at 1-year intervals after the effective date

15 of such first reduction.

16 (B) EXEMPTION FROM STAGING.—No

17 staging under subparagraph (A) is required

18 with respect to a rate reduction that is pro19 claimed under paragraph (1) for an article of a

20 kind that is not produced in the United States.

21 The United States International Trade Com22 mission shall advise the President of the iden23 tity of articles that may be exempted from stag24 ing under this subparagraph.
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1 (4) ROUNDING.—If the President determines

2 that such action will simplify the computation of re3 ductions under paragraph (3), the President may

4 round an annual reduction by the lesser of—

5 (A) the difference between the reduction

6 without regard to this paragraph and the next

7 lower whole number; or

8 (B) one-half of 1 percent ad valorem.

9 (5) OTHER LIMITATIONS.—A rate of duty re10 duction or increase that may not be proclaimed by

11 reason of paragraph (2) may take effect only if a

12 provision authorizing such reduction or increase is

13 included within an implementing bill provided for

14 under section 5 and that bill is enacted into law.

15 (6) EXPANDED TARIFF PROCLAMATION AU16 THORITY.—

17 (A) IN GENERAL.—Notwithstanding the

18 provisions of paragraphs (1) through (5), before

19 October 1, 2001 (or before October 1, 2005, if

20 the authority provided by this Act is extended

21 under subsection (c)), and subject to the con22 sultation and layover requirements of section

23 115 of the Uruguay Round Agreements Act (19

24 U.S.C. 3524) and the notification and consulta25 tion requirements of section 4(a) of this Act,
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1 the President may proclaim the modification of

2 any duty or staged rate reduction of any duty

3 set forth in Schedule XX, as defined in section

4 2(5) of the Uruguay Round Agreements Act, if

5 the United States has agreed to such modifica6 tion or staged rate reduction in a negotiation

7 for the reciprocal elimination or harmonization

8 of duties, within the same tariff categories,

9 under the auspices of the World Trade Organi10 zation or as part of an interim agreement lead11 ing to the formation of a regional free-trade

12 area.

13 (B) NOTICE REQUIRED.—The modification

14 or staged rate reduction authorized under sub15 paragraph (A) with respect to any negotiation

16 initiated after the date of enactment of this Act

17 may be proclaimed only on articles in tariff cat18 egories with respect to which the President has

19 provided notice in accordance with section 4(a).

20 (7) TARIFF MODIFICATIONS UNDER URUGUAY

21 ROUND AGREEMENTS ACT.—Nothing in this sub22 section shall limit the authority provided to the

23 President under section 111(b) of the Uruguay

24 Round Agreements Act.
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1 (b) AGREEMENTS REGARDING TARIFF AND NON2 TARIFF BARRIERS.—

3 (1) IN GENERAL.—

4 (A) DETERMINATION BY PRESIDENT.—

5 Whenever the President determines that—

6 (i) any duty or other import restric7 tion imposed by any foreign country or the

8 United States or any other barrier to, or

9 other distortion of, international trade—

10 (I) unduly burdens or restricts

11 the foreign trade of the United States

12 or adversely affects the United States

13 economy, or

14 (II) is likely to result in such a

15 burden, restriction, or effect, and

16 (ii) the purposes, policies, and objec17 tives of this Act will be promoted thereby,

18 the President may, before October 1, 2001 (or

19 before October 1, 2005, if the authority pro20 vided under this Act is extended under sub21 section (c)) enter into a trade agreement de22 scribed in subparagraph (B).

23 (B) TRADE AGREEMENT DESCRIBED.—A

24 trade agreement described in this subparagraph
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1 means an agreement with a foreign country

2 that provides for—

3 (i) the reduction or elimination of

4 such duty, restriction, barrier, or other dis5 tortion; or

6 (ii) the prohibition of, or limitation on

7 the imposition of, such barrier or other dis8 tortion.

9 (2) CONDITIONS.—A trade agreement may be

10 entered into under this subsection only if—

11 (A) such agreement makes progress in

12 meeting the applicable objectives described in

13 section 2(b); and

14 (B) the President satisfies the conditions

15 set forth in section 4 with respect to such

16 agreement.

17 (3) BILLS QUALIFYING FOR TRADE AGREEMENT

18 APPROVAL PROCEDURES.—The provisions of section

19 151 of the Trade Act of 1974 (in this Act referred

20 to as ‘‘trade agreement approval procedures’’) apply

21 to implementing bills submitted with respect to trade

22 agreements entered into under this subsection, ex23 cept that, for purposes of applying section

24 151(b)(1), such implementing bills shall contain

25 only—
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1 (A) provisions that approve a trade agree2 ment entered into under this subsection that

3 achieves one or more of the principal negotiat4 ing objectives set forth in section 2(b) and the

5 statement of administrative action (if any) pro6 posed to implement such trade agreement;

7 (B) provisions that are—

8 (i) necessary to implement such agree9 ment; or

10 (ii) otherwise related to the implemen11 tation, enforcement, and adjustment to the

12 effects of such trade agreement and are di13 rectly related to trade; and

14 (C) provisions necessary for purposes of

15 complying with section 252 of the Balanced

16 Budget and Emergency Deficit Control Act of

17 1985 in implementing the applicable trade

18 agreement.

19 (c) EXTENSION PROCEDURES.—

20 (1) IN GENERAL.—Except as provided in sec21 tion 5(b)—

22 (A) subsections (a) and (b) shall apply

23 with respect to agreements entered into before

24 October 1, 2001; and
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1 (B) subsections (a) and (b) shall be ex2 tended to apply with respect to agreements en3 tered into on or after October 1, 2001, and be4 fore October 1, 2005, if (and only if)—

5 (i) the President requests such exten6 sion under paragraph (2); and

7 (ii) neither House of Congress adopts

8 an extension disapproval resolution under

9 paragraph (5) before October 1, 2001.

10 (2) REPORT TO CONGRESS BY THE PRESI11 DENT.—If the President is of the opinion that the

12 authority under subsections (a) and (b) should be

13 extended, the President shall submit to Congress,

14 not later than July 1, 2001, a written report that

15 contains a request for such extension, together

16 with—

17 (A) a description of all trade agreements

18 that have been negotiated under subsections (a)

19 and (b) and, where applicable, the anticipated

20 schedule for submitting such agreements to

21 Congress for approval;

22 (B) a description of the progress that has

23 been made in negotiations to achieve the pur24 poses, policies, and objectives set out in section

25 2 (a) and (b) of this Act, and a statement that
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1 such progress justifies the continuation of nego2 tiations; and

3 (C) a statement of the reasons why the ex4 tension is needed to complete the negotiations.

5 (3) REPORT TO CONGRESS BY THE ADVISORY

6 COMMITTEE.—The President shall promptly inform

7 the Advisory Committee for Trade Policy and Nego8 tiations established under section 135 of the Trade

9 Act of 1974 (19 U.S.C. 2155) of the President’s de10 cision to submit a report to Congress under para11 graph (2). The Advisory Committee shall submit to

12 Congress as soon as practicable, but not later than

13 August 1, 2001, a written report that contains—

14 (A) its views regarding the progress that

15 has been made in negotiations to achieve the

16 purposes, policies, and objectives of this Act;

17 and

18 (B) a statement of its views, and the rea19 sons therefor, regarding whether the extension

20 requested under paragraph (2) should be ap21 proved or disapproved.

22 (4) REPORTS MAY BE CLASSIFIED.—The re23 ports submitted to Congress under paragraphs (2)

24 and (3), or any portion of the reports, may be classi-
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1 fied to the extent the President determines appro2 priate.

3 (5) EXTENSION DISAPPROVAL RESOLUTIONS.—

4 (A) IN GENERAL.—For purposes of this

5 subsection, the term ‘‘extension disapproval res6 olution’’ means a resolution of either House of

7 Congress, the sole matter after the resolving

8 clause of which is as follows: ‘‘That the ll

9 disapproves the request of the President for an

10 extension, under section 3(c) of the Reciprocal

11 Trade Agreements Act of 1997, of

12 llllllll after September 30,

13 2001.’’, with the first blank space being filled

14 with the name of the resolving House of Con15 gress and the second blank space being filled

16 with one or both of the following phrases: ‘‘the

17 tariff proclamation authority provided under

18 section 3(a) of the Reciprocal Trade Agree19 ments Act of 1997’’ or ‘‘the trade agreement

20 approval procedures provided under section 3(b)

21 of the Reciprocal Trade Agreements Act of

22 1997’’.

23 (B) INTRODUCTION AND REFERRAL.—Ex24 tension disapproval resolutions—
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1 (i) may be introduced in either House

2 of Congress by any member of such House;

3 (ii) shall be jointly referred, in the

4 House of Representatives, to the Commit5 tee on Ways and Means and the Commit6 tee on Rules; and

7 (iii) shall be referred, in the Senate,

8 to the Committee on Finance.

9 (C) FLOOR CONSIDERATION.—The provi10 sions of sections 152(d) and (e) of the Trade

11 Act of 1974 (19 U.S.C. 2192(d) and (e)) (relat12 ing to the floor consideration of certain resolu13 tions in the House and Senate) apply to exten14 sion disapproval resolutions.

15 (D) COMMITTEE ACTION REQUIRED.—It is

16 not in order for—

17 (i) the Senate to consider any exten18 sion disapproval resolution not reported by

19 the Committee on Finance;

20 (ii) the House of Representatives to

21 consider any extension disapproval resolu22 tion not reported by the Committee on

23 Ways and Means and the Committee on

24 Rules; or
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1 (iii) either House of Congress to con2 sider an extension disapproval resolution

3 after September 30, 2001.

4 SEC. 4. NOTICE AND CONSULTATIONS.

5 (a) NOTICE AND CONSULTATION BEFORE NEGOTIA6 TION.—With respect to any agreement subject to the pro7 visions of section 3 (a) or (b), the President shall—

8 (1) not later than 90 calendar days before initi9 ating negotiations, provide written notice to Con10 gress regarding—

11 (A) the President’s intent to initiate the

12 negotiations;

13 (B) the date the President intends to initi14 ate such negotiations;

15 (C) the specific United States objectives

16 for the negotiations; and

17 (D) whether the President intends to seek

18 an agreement or changes to an existing agree19 ment;

20 (2) consult regarding the negotiations—

21 (A) before and promptly after submission

22 of the notice described in paragraph (1), with

23 the Committee on Finance of the Senate, the

24 Committee on Ways and Means of the House of

25 Representatives, and such other committees of
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1 the House and Senate as the President deems

2 appropriate; and

3 (B) with any other committee that re4 quests consultations in writing; and

5 (3) consult with the appropriate industry sector

6 advisory groups established under section 135 of the

7 Trade Act of 1974 before initiating negotiations.

8 (b) CONSULTATION WITH CONGRESS BEFORE

9 AGREEMENT ENTERED INTO.—

10 (1) CONSULTATION.—Before entering into any

11 trade agreement under section 3 (a) or (b), the

12 President shall consult with—

13 (A) the Committee on Ways and Means of

14 the House of Representatives and the Commit15 tee on Finance of the Senate; and

16 (B) each other committee of the House

17 and the Senate, and each joint committee of

18 Congress, which has jurisdiction over legislation

19 involving subject matters that would be affected

20 by the trade agreement.

21 (2) SCOPE.—The consultation described in

22 paragraph (1) shall include consultation with respect

23 to—

24 (A) the nature of the agreement;
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1 (B) how and to what extent the agreement

2 will achieve the applicable purposes, policies,

3 and objectives of this Act;

4 (C) where applicable, the implementation

5 of the agreement under section 5, including

6 whether the agreement includes subject matter

7 for which supplemental implementing legislation

8 may be required which is not subject to trade

9 agreement approval procedures; and

10 (D) any other agreement the President has

11 entered into or intends to enter into with the

12 country or countries in question.

13 (c) ADVISORY COMMITTEE REPORTS.—The report

14 required under section 135(e)(1) of the Trade Act of 1974

15 regarding any trade agreement entered into under section

16 3(b) of this Act shall be provided to the President, Con17 gress, and the United States Trade Representative not

18 later than 30 calendar days after the date on which the

19 President notifies Congress under section 5(a)(1)(A) of

20 the President’s intention to enter into the agreement.

21 (d) CONSULTATION BEFORE AGREEMENT INI22 TIALED.—In the course of negotiations conducted under

23 this Act, the United States Trade Representative shall

24 consult closely and on a timely basis (including imme25 diately before initialing an agreement) with, and keep fully
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1 apprised of the negotiations, the congressional advisers for

2 trade policy and negotiations appointed under section 161

3 of the Trade Act of 1974 (19 U.S.C. 2211), the Commit4 tee on Finance of the Senate, and the Committee on Ways

5 and Means of the House of Representatives.

6 SEC. 5. IMPLEMENTATION OF TRADE AGREEMENTS.

7 (a) IN GENERAL.—

8 (1) NOTIFICATION AND SUBMISSION.—Any

9 agreement entered into under section 3(b) shall

10 enter into force with respect to the United States if

11 (and only if)—

12 (A) the President, at least 90 calendar

13 days before the day on which the President en14 ters into the trade agreement, notifies the

15 House of Representatives and the Senate of the

16 President’s intention to enter into the agree17 ment, and promptly thereafter publishes notice

18 of such intention in the Federal Register;

19 (B) within 60 calendar days after entering

20 into the agreement, the President submits to

21 Congress a description of those changes to ex22 isting laws that the President considers would

23 be required in order to bring the United States

24 into compliance with the agreement;
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1 (C) after entering into the agreement, the

2 President submits a copy of the final legal text

3 of the agreement, together with—

4 (i) a draft of an implementing bill de5 scribed in section 3(b)(3);

6 (ii) a statement of any administrative

7 action proposed to implement the trade

8 agreement; and

9 (iii) the supporting information de10 scribed in paragraph (2); and

11 (D) the implementing bill is enacted into

12 law.

13 (2) SUPPORTING INFORMATION.—The support14 ing information required under paragraph (1)(C)(iii)

15 consists of—

16 (A) an explanation as to how the imple17 menting bill and proposed administrative action

18 will change or affect existing law; and

19 (B) a statement—

20 (i) asserting that the agreement

21 makes progress in achieving the applicable

22 purposes, policies, and objectives of this

23 Act; and

24 (ii) setting forth the reasons of the

25 President regarding—
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1 (I) how and to what extent the

2 agreement makes progress in achiev3 ing the applicable purposes, policies,

4 and objectives referred to in clause (i),

5 and why and to what extent the

6 agreement does not achieve other ap7 plicable purposes, policies, and objec8 tives;

9 (II) whether and how the agree10 ment changes provisions of an agree11 ment previously negotiated;

12 (III) how the agreement serves

13 the interests of United States com14 merce;

15 (IV) why the implementing bill

16 qualifies for trade agreement approval

17 procedures under section 3(b)(3); and

18 (V) any proposed administrative

19 action.

20 (3) RECIPROCAL BENEFITS.—To ensure that a

21 foreign country which receives benefits under a trade

22 agreement entered into under section 3 (a) or (b) is

23 subject to the obligations imposed by such agree24 ment, the President shall recommend to Congress in

25 the implementing bill and statement of administra-
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1 tive action submitted with respect to such agreement

2 that the benefits and obligations of such agreement

3 apply solely to the parties to such agreement, if such

4 application is consistent with the terms of such

5 agreement. The President may also recommend with

6 respect to any such agreement that the benefits and

7 obligations of such agreement not apply uniformly to

8 all parties to such agreement, if such application is

9 consistent with the terms of such agreement.

10 (b) LIMITATIONS ON TRADE AGREEMENT APPROVAL

11 PROCEDURES.—

12 (1) DISAPPROVAL OF THE NEGOTIATION.—The

13 trade agreement approval procedures shall not apply

14 to any implementing bill that contains a provision

15 approving any trade agreement that is entered into

16 under section 3(b) with any foreign country if the

17 Committee on Finance of the Senate and the Com18 mittee on Ways and Means of the House of Rep19 resentatives disapprove of the negotiation of the

20 agreement before the close of the 90-calendar day

21 period that begins on the date notice is provided

22 under section 4(a)(1) with respect to the negotiation

23 of such agreement.

24 (2) FOR LACK OF NOTICE OR CONSULTA25 TIONS.—
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1 (A) IN GENERAL.—The trade agreement

2 approval procedures shall not apply to any im3 plementing bill submitted with respect to a

4 trade agreement entered into under section 3(b)

5 if during the 60-day period beginning on the

6 date that one House of Congress agrees to a

7 procedural disapproval resolution for lack of no8 tice or consultations with respect to that trade

9 agreement, the other House separately agrees

10 to a procedural disapproval resolution with re11 spect to that agreement.

12 (B) PROCEDURAL DISAPPROVAL RESOLU13 TION.—For purposes of this paragraph, the

14 term ‘‘procedural disapproval resolution’’ means

15 a resolution of either House of Congress, the

16 sole matter after the resolving clause of which

17 is as follows: ‘‘That the President has failed or

18 refused to notify or consult (as the case may

19 be) with Congress in accordance with sections 4

20 and 5 of the Reciprocal Trade Agreements Act

21 of 1997 with respect to ll and, therefore, the

22 trade agreement approval procedures set forth

23 in section 3(b) of that Act shall not apply to

24 any implementing bill submitted with respect to

25 that trade agreement.’’, with the blank space
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1 being filled with a description of the trade

2 agreement with respect to which the President

3 is considered to have failed or refused to notify

4 or consult.

5 (C) COMPUTATION OF CERTAIN PERIODS

6 OF TIME.—The 60-day period of time described

7 in subparagraph (A) shall be computed without

8 regard to—

9 (i) the days on which either House of

10 Congress is not in session because of an

11 adjournment of more than 3 days to a day

12 certain or an adjournment of the Congress

13 sine die; and

14 (ii) any Saturday and Sunday, not ex15 cluded under clause (i), when either House

16 of Congress is not in session.

17 (3) PROCEDURES FOR CONSIDERING PROCE18 DURAL DISAPPROVAL RESOLUTIONS.—

19 (A) PROCEDURAL DISAPPROVAL RESOLU20 TIONS.—Procedural disapproval resolutions—

21 (i) in the House of Representatives—

22 (I) shall be introduced by the

23 chairman or ranking minority member

24 of the Committee on Ways and Means
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1 or the chairman or ranking minority

2 member of the Committee on Rules;

3 (II) shall be jointly referred to

4 the Committee on Ways and Means

5 and the Committee on Rules; and

6 (III) may not be amended by ei7 ther Committee; and

8 (ii) in the Senate shall be original res9 olutions of the Committee on Finance.

10 (B) FLOOR CONSIDERATION.—The provi11 sions of section 152 (d) and (e) of the Trade

12 Act of 1974 (19 U.S.C. 2192 (d) and (e)) (re13 lating to the floor consideration of certain reso14 lutions in the House and Senate) apply to pro15 cedural disapproval resolutions.

16 (C) COMMITTEE ACTION REQUIRED.—

17 (i) HOUSE OF REPRESENTATIVES.—It

18 is not in order for the House of Represent19 atives to consider any procedural dis20 approval resolution not reported by the

21 Committee on Ways and Means and the

22 Committee on Rules.

23 (ii) SENATE.—It is not in order for

24 the Senate to consider any procedural dis-
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1 approval resolution not reported by the

2 Committee on Finance.

3 (c) RULES OF HOUSE OF REPRESENTATIVES AND

4 SENATE.—Subsection (b) of this section and section 3(c)

5 are enacted by Congress—

6 (1) as an exercise of the rulemaking power of

7 the House of Representatives and the Senate, re8 spectively, and as such are deemed a part of the

9 rules of each House, respectively, and such proce10 dures supersede other rules only to the extent that

11 they are inconsistent with such other rules; and

12 (2) with the full recognition of the constitu13 tional right of either House to change the rules (so

14 far as relating to the procedures of that House) at

15 any time, in the same manner, and to the same ex16 tent as any other rule of that House.

17 SEC. 6. TREATMENT OF CERTAIN TRADE AGREEMENTS.

18 (a) IN GENERAL.—Notwithstanding section

19 3(a)(6)(B) and section 3(b)(2), the provisions of section

20 4(a) shall not apply with respect to agreements that result

21 from—

22 (1) negotiations under the auspices of the

23 World Trade Organization regarding trade in infor24 mation technology products;
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1 (2) negotiations or work programs initiated

2 pursuant to a Uruguay Round Agreement, as de3 fined in section 2 of the Uruguay Round Agree4 ments Act; or

5 (3) negotiations with Chile,

6 that were commenced before the date of enactment of this

7 Act, and the applicability of trade agreement approval pro8 cedures with respect to such agreements shall be deter9 mined without regard to the requirements of section 4(a).

10 (b) PROCEDURAL DISAPPROVAL RESOLUTION NOT

11 IN ORDER.—A procedural disapproval resolution under

12 section 5(b) shall not be in order with respect to an agree13 ment described in subsection (a) of this section based on

14 a failure or refusal to comply with section 4(a).

15 SEC. 7. CONFORMING AMENDMENTS.

16 (a) IN GENERAL.—Title I of the Trade Act of 1974

17 (19 U.S.C. 2111 et seq.) is amended as follows:

18 (1) IMPLEMENTING BILL.—

19 (A) Section 151(b)(1) (19 U.S.C.

20 2191(b)(1)) is amended—

21 (i) by striking ‘‘section 1103(a)(1) of

22 the Omnibus Trade and Competitiveness

23 Act of 1988, or section 282 of the Uru24 guay Round Agreements Act’’ and insert25 ing ‘‘section 282 of the Uruguay Round
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1 Agreements Act, or section 5(a)(1) of the

2 Reciprocal Trade Agreements Act of

3 1997’’; and

4 (ii) by adding after subparagraph (C)

5 the following flush sentence:

6 ‘‘For purposes of applying this paragraph to imple7 menting bills submitted with respect to trade agree8 ments entered into under section 3(b) of the Recip9 rocal Trade Agreements Act of 1997, subparagraphs

10 (A), (B), and (C) of section 3(b)(3) of such Act shall

11 be substituted for subparagraphs (A), (B), and (C)

12 of this paragraph.’’.

13 (B) Section 151(c)(1) (19 U.S.C.

14 2191(c)(1)) is amended by striking ‘‘or section

15 282 of the Uruguay Round Agreements Act’’

16 and inserting ‘‘, section 282 of the Uruguay

17 Round Agreements Act, or section 5(a)(1) of

18 the Reciprocal Trade Agreements Act of 1997’’.

19 (2) ADVICE FROM INTERNATIONAL TRADE COM20 MISSION.—Section 131 (19 U.S.C. 2151) is amend21 ed—

22 (A) in subsection (a)—

23 (i) in paragraph (1), by striking ‘‘sec24 tion 123 of this Act or section 1102 (a) or

25 (c) of the Omnibus Trade and Competitive-
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1 ness Act of 1988,’’ and inserting ‘‘section

2 123 of this Act or section 3 (a) or (b) of

3 the Reciprocal Trade Agreements Act of

4 1997,’’; and

5 (ii) in paragraph (2), by striking ‘‘sec6 tion 1102 (b) or (c) of the Omnibus Trade

7 and Competitiveness Act of 1988’’ and in8 serting ‘‘section 3(b) of the Reciprocal

9 Trade Agreements Act of 1997’’;

10 (B) in subsection (b), by striking ‘‘section

11 1102(a)(3)(A)’’ and inserting ‘‘section

12 3(a)(3)(A) of the Reciprocal Trade Agreements

13 Act of 1997’’ before the end period; and

14 (C) in subsection (c), by striking ‘‘section

15 1102 of the Omnibus Trade and Competitive16 ness Act of 1988,’’ and inserting ‘‘section 3 of

17 the Reciprocal Trade Agreements Act of

18 1997,’’.

19 (3) HEARINGS AND ADVICE.—Sections 132,

20 133(a), and 134(a) (19 U.S.C. 2152, 2153(a), and

21 2154(a)) are each amended by striking ‘‘section

22 1102 of the Omnibus Trade and Competitiveness

23 Act of 1988,’’ each place it appears and inserting

24 ‘‘section 3 of the Reciprocal Trade Agreements Act

25 of 1997,’’.
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1 (4) PREREQUISITES FOR OFFERS.—Section

2 134(b) (19 U.S.C. 2154(b)) is amended by striking

3 ‘‘section 1102 of the Omnibus Trade and Competi4 tiveness Act of 1988’’ and inserting ‘‘section 3 of the

5 Reciprocal Trade Agreements Act of 1997’’.

6 (5) ADVICE FROM PRIVATE AND PUBLIC SEC7 TORS.—Section 135 (19 U.S.C. 2155) is amended—

8 (A) in subsection (a)(1)(A), by striking

9 ‘‘section 1102 of the Omnibus Trade and Com10 petitiveness Act of 1988’’ and inserting ‘‘section

11 3 of the Reciprocal Trade Agreements Act of

12 1997’’;

13 (B) in subsection (e)(1)—

14 (i) by striking ‘‘section 1102 of the

15 Omnibus Trade and Competitiveness Act

16 of 1988’’ each place it appears and insert17 ing ‘‘section 3 of the Reciprocal Trade

18 Agreements Act of 1997’’; and

19 (ii) by striking ‘‘section 1103(a)(1)(A)

20 of such Act of 1988’’ and inserting ‘‘sec21 tion 5(a)(1)(A) of the Reciprocal Trade

22 Agreements Act of 1997’’; and

23 (C) in subsection (e)(2), by striking ‘‘the

24 applicable overall and principal negotiating ob25 jectives set forth in section 1101 of the Omni-
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1 bus Trade and Competitiveness Act of 1988’’

2 and inserting ‘‘the purposes, policies, and objec3 tives set forth in section 2 (a) and (b) of the

4 Reciprocal Trade Agreements Act of 1997’’.

5 (6) TRANSMISSION OF AGREEMENTS TO CON6 GRESS.—Section 162(a) (19 U.S.C. 2212(a)) is

7 amended by striking ‘‘or under section 1102 of the

8 Omnibus Trade and Competitiveness Act of 1988’’

9 and inserting ‘‘or under section 3 of the Reciprocal

10 Trade Agreements Act of 1997’’.

11 (b) APPLICATION OF CERTAIN PROVISIONS.—For

12 purposes of applying sections 125, 126, and 127 of the

13 Trade Act of 1974 (19 U.S.C. 2135, 2136(a), and

14 2137)—

15 (1) any trade agreement entered into under sec16 tion 3 shall be treated as an agreement entered into

17 under section 101 or 102, as appropriate, of the

18 Trade Act of 1974 (19 U.S.C. 2111 or 2112); and

19 (2) any proclamation or Executive order issued

20 pursuant to a trade agreement entered into under

21 section 3 shall be treated as a proclamation or Exec22 utive order issued pursuant to a trade agreement en23 tered into under section 102 of the Trade Act of

24 1974.
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1 SEC. 8. TRADE ADJUSTMENT ASSISTANCE.

2 (a) AUTHORIZATION OF APPROPRIATIONS.—

3 (1) IN GENERAL.—Section 245 of the Trade

4 Act of 1974 (19 U.S.C. 2317) is amended—

5 (A) in subsection (a), by striking ‘‘1993,

6 1994, 1995, 1996, 1997, and’’ and inserting

7 ‘‘1999, and 2000,’’ after ‘‘1998,’’; and

8 (B) in subsection (b), by striking ‘‘1994,

9 1995, 1996, 1997, and’’ and inserting ‘‘1999,

10 and 2000,’’ after ‘‘1998,’’.

11 (2) ASSISTANCE FOR FIRMS.—Section 256(b) of

12 the Trade Act of 1974 (19 U.S.C. 2346(b)) is

13 amended by striking ‘‘1993, 1994, 1995, 1996,

14 1997, and’’ and inserting ‘‘, 1999, and 2000,’’ after

15 ‘‘1998’’.

16 (b) TERMINATION.—Section 285(c) of the Trade Act

17 of 1974 (19 U.S.C. 2271 note preceding) is amended—

18 (1) in paragraph (1), by striking ‘‘1998’’ and

19 inserting ‘‘2000’’; and

20 (2) in paragraph (2)(A), by striking ‘‘the day

21 that is’’ and all that follows through ‘‘effective’’ and

22 inserting ‘‘September 30, 2000’’.

23 SEC. 9. FEES FOR CERTAIN CUSTOMS SERVICES.

24 Section 13031(b)(1)(C) of the Consolidated Omnibus

25 Budget Reconciliation Act of 1985 (19 U.S.C.

26 58c(b)(1)(C)) is amended by striking ‘‘to fiscal years’’ and
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1 all that follows through ‘‘1997’’ and inserting ‘‘before Sep2 tember 1, 1998’’.

3 SEC. 10. DEFINITIONS.

4 In this Act:

5 (1) DISTORTION.—The term ‘‘distortion’’ in6 cludes, but is not limited to, a subsidy.

7 (2) TRADE.—The term ‘‘trade’’ includes, but is

8 not limited to—

9 (A) trade in both goods and services; and

10 (B) foreign investment by United States

11 persons, especially if such investment has impli12 cations for trade in goods and services.

13 (3) URUGUAY ROUND AGREEMENTS.— The

14 term ‘‘Uruguay Round Agreements’’ has the mean15 ing given such term in section 2(7) of the Uruguay

16 Round Agreements Act (19 U.S.C. 3501(7).

17 (4) WORLD TRADE ORGANIZATION.—The term

18 ‘‘World Trade Organization’’ means the organization

19 established pursuant to the WTO Agreement.

20 (5) WTO AGREEMENT.—The term ‘‘WTO

21 Agreement’’ means the Agreement Establishing the

22 World Trade Organization entered into on April 15,

23 1994.

24 (6) WTO AND WTO MEMBER.—The terms

25 ‘‘WTO’’ and ‘‘WTO member’’ have the meanings
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1 given those terms in section 2 of the Uruguay

2 Round Agreements Act (19 U.S.C. 3501).