I

106TH CONGRESS

1ST SESSION H. R. 1244

To provide a framework for consideration by the legislative and executive

branches of unilateral economic sanctions.

IN THE HOUSE OF REPRESENTATIVES

MARCH 24, 1999

Mr. CRANE (for himself, Mr. DOOLEY of California, Mr. MANZULLO, Mr. ARCHER, Mr. BEREUTER, Mr. ROYCE, Mr. SALMON, Mr. CLEMENT, Mr.

HOUGHTON, Mr. CAMPBELL, Mr. BRADY of Texas, Mr. RANGEL, Mr.

SHAW, Mrs. JOHNSON of Connecticut, Mr. HERGER, Mr. MCCRERY, Ms.

DUNN, Mr. JEFFERSON, Mr. PORTMAN, Mr. ENGLISH, Mr. WATKINS,

Mr. STENHOLM, Mr. BOUCHER, Mr. DREIER, Mr. PRICE of North Carolina, Mr. BLILEY, Mr. MORAN of Virginia, Mr. OXLEY, Mr. MINGE, Mr.

KOLBE, Mr. POMEROY, Mr. CALLAHAN, Mr. LUTHER, Mr. EWING, Mr.

BLUMENAUER, Mr. BOEHNER, Ms. LOFGREN, Mr. MCINTOSH, Mr. DAVIS

of Florida, Mr. HASTINGS of Washington, Mr. JOHN, Mr. NETHERCUTT,

Mr. SNYDER, Mr. SESSIONS, Mr. SMITH of Washington, Mr. SHIMKUS,

Mrs. TAUSCHER, Mr. REYNOLDS, Mr. SHOWS, Mr. KUYKENDALL, Mrs.

NAPOLITANO, Mr. BAIRD, Mr. SKELTON, Mrs. BIGGERT, Mr. RAMSTAD,

and Mr. MORAN of Kansas) introduced the following bill; which was referred to the Committee on International Relations, and in addition to

the Committees on Ways and Means, and Banking and Financial Services, for a period to be subsequently determined by the Speaker, in each

case for consideration of such provisions as fall within the jurisdiction of

the committee concerned

A BILL

To provide a framework for consideration by the legislative

and executive branches of unilateral economic sanctions.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,
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1 SECTION 1. SHORT TITLE.

2 This Act may be cited as the ‘‘Enhancement of

3 Trade, Security, and Human Rights through Sanctions

4 Reform Act’’.

5 SEC. 2. PURPOSE.

6 It is the purpose of this Act to establish an effective

7 framework for consideration by the legislative and execu8 tive branches of unilateral economic sanctions in order to

9 ensure coordination of United States policy with respect

10 to trade, security, and human rights.

11 SEC. 3. STATEMENT OF POLICY.

12 It is the policy of the United States—

13 (1) to pursue United States interests through

14 vigorous and effective diplomatic, political, commer15 cial, charitable, educational, cultural, and strategic

16 engagement with other countries, while recognizing

17 that the national security interests of the United

18 States may sometimes require the imposition of eco19 nomic sanctions on other countries;

20 (2) to foster multilateral cooperation on vital

21 matters of United States foreign policy, including

22 promoting human rights and democracy, combating

23 international terrorism, proliferation of weapons of

24 mass destruction, and international narcotics traf25 ficking, and ensuring adequate environmental pro26 tection;
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1 (3) to promote United States economic growth

2 and job creation by expanding exports of goods,

3 services, and agricultural commodities, and by en4 couraging investment that supports the sale abroad

5 of products and services of the United States;

6 (4) to maintain the reputation of United States

7 businesses and farmers as reliable suppliers to inter8 national customers of quality products and services,

9 including United States manufactures, technology

10 products, financial services, and agricultural com11 modities;

12 (5) to avoid the use of restrictions on exports

13 of agricultural commodities as a foreign policy weap14 on;

15 (6) to oppose policies of other countries de16 signed to discourage economic interaction with coun17 tries friendly to the United States or with any

18 United States national, and to avoid use of such

19 measures as instruments of United States foreign

20 policy; and

21 (7) when economic sanctions are necessary—

22 (A) to target them as narrowly as possible

23 on those foreign governments, entities, and offi24 cials that are responsible for the conduct being

25 targeted, thereby minimizing unnecessary or
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1 disproportionate harm to individuals who are

2 not responsible for such conduct; and

3 (B) to the extent feasible, to avoid any ad4 verse impact of economic sanctions on the hu5 manitarian activities of United States and for6 eign nongovernmental organizations in a coun7 try against which sanctions are imposed.

8 SEC. 4. DEFINITIONS.

9 As used in this Act:

10 (1) UNILATERAL ECONOMIC SANCTION.—

11 (A) IN GENERAL.—The term ‘‘unilateral

12 economic sanction’’ means any prohibition, re13 striction, or condition on economic activity, in14 cluding economic assistance, with respect to a

15 foreign country or foreign entity that is im16 posed by the United States for reasons of for17 eign policy or national security, including any of

18 the measures described in subparagraph (B),

19 except in a case in which the United States im20 poses the measure pursuant to a multilateral

21 regime and the other members of that regime

22 have agreed to impose substantially equivalent

23 measures.
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1 (B) PARTICULAR MEASURES.—The meas2 ures referred to in subparagraph (A) are the

3 following:

4 (i) The suspension, restriction, or pro5 hibition of exports or imports of any prod6 uct, technology, or service to or from a for7 eign country or entity.

8 (ii) The suspension of, or any restric9 tion or prohibition on, financial trans10 actions with a foreign country or entity.

11 (iii) The suspension of, or any restric12 tion or prohibition on, direct or indirect in13 vestment in or from a foreign country or

14 entity.

15 (iv) The imposition of increased tar16 iffs on, or other restrictions on imports of,

17 products of a foreign country or entity, in18 cluding the denial, revocation, or condi19 tioning of nondiscriminatory trade treat20 ment (normal trade relations).

21 (v) The suspension of, or any restric22 tion or prohibition on—

23 (I) the authority of the Export24 Import Bank of the United States to

25 give approval to the issuance of any
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1 guarantee, insurance, or extension of

2 credit in connection with the export of

3 goods or services to a foreign country

4 or entity;

5 (II) the authority of the Trade

6 and Development Agency to provide

7 assistance in connection with projects

8 in a foreign country or in which a

9 particular foreign entity participates;

10 or

11 (III) the authority of the Over12 seas Private Investment Corporation

13 to provide insurance, reinsurance, fi14 nancing, or conduct other activities in

15 connection with projects in a foreign

16 country or in which a particular for17 eign entity participates.

18 (vi) A requirement that the United

19 States representative to an international fi20 nancial institution vote against any loan or

21 other utilization of funds to, for, or in a

22 foreign country or particular foreign entity.

23 (vii) A measure imposing any restric24 tion or condition on economic activity on

25 any foreign government or entity on the
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1 grounds that such government or entity

2 does business in or with a foreign country.

3 (viii) A measure imposing any restric4 tion or condition on economic activity on

5 any person that is a national of a foreign

6 country, or on any government or other en7 tity of a foreign country, on the grounds

8 that the government of that country has

9 not taken measures in cooperation with, or

10 similar to, sanctions imposed by the

11 United States on a third country.

12 (ix) The suspension of, or any restric13 tion or prohibition on, travel rights or air

14 transportation to or from a foreign coun15 try.

16 (x) Any restriction on the filing or

17 maintenance in a foreign country of any

18 proprietary interest in intellectual property

19 rights (including patents, copyrights, and

20 trademarks), including payment of patent

21 maintenance fees.

22 (C) MULTILATERAL REGIME.—As used in

23 this paragraph, the term ‘‘multilateral regime’’

24 means an agreement, arrangement, or obliga25 tion under which the United States cooperates
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1 with other countries in restricting commerce for

2 reasons of foreign policy or national security,

3 including—

4 (i) obligations under resolutions of the

5 United Nations;

6 (ii) nonproliferation and export con7 trol arrangements, such as the Australia

8 Group, the Nuclear Supplier’s Group, the

9 Missile Technology Control Regime, and

10 the Wassenaar Arrangement;

11 (iii) treaty obligations, such as under

12 the Chemical Weapons Convention, the

13 Treaty on the Non-Proliferation of Nuclear

14 Weapons, and the Biological Weapons Con15 vention; and

16 (iv) agreements concerning protection

17 of the environment, such as the Inter18 national Convention for the Conservation

19 of Atlantic Tunas, the Declaration of Pan20 ama referred to in section 2(a)(1) of the

21 International Dolphin Conservation Act

22 (16 U.S.C. 1361 note), the Convention on

23 International Trade in Endangered Spe24 cies, the Montreal Protocol on Substances

25 that Deplete the Ozone Layer, and the
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1 Basel Convention on the Control of

2 Transboundary Movements of Hazardous

3 Wastes.

4 (D) ECONOMIC ASSISTANCE.—The term

5 ‘‘economic assistance’’ means—

6 (i) any assistance under part I or

7 chapter 4 of part II of the Foreign Assist8 ance Act of 1961 (including programs

9 under title IV of chapter 2, relating to the

10 Overseas Private Investment Corporation);

11 and

12 (ii) the provision of agricultural com13 modities, other than food, under the Agri14 cultural Trade Development and Assist15 ance Act of 1954.

16 (E) FINANCIAL TRANSACTION.—As used in

17 this paragraph, the term ‘‘financial trans18 action’’ has the meaning given that term in sec19 tion 1956(c)(4) of title 18, United States Code.

20 (F) INVESTMENT.—As used in this para21 graph, the term ‘‘investment’’ means any con22 tribution or commitment of funds, commodities,

23 services, patents, or other forms of intellectual

24 property, processes, or techniques, including—

25 (i) a loan or loans;
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1 (ii) the purchase of a share of owner2 ship;

3 (iii) participation in royalties, earn4 ings, or profits; and

5 (iv) the furnishing or commodities or

6 services pursuant to a lease or other con7 tract.

8 (G) EXCLUSIONS.—The term ‘‘unilateral

9 economic sanction’’ does not include—

10 (i) any measure imposed to remedy

11 unfair trade practices or to enforce United

12 States rights under a trade agreement, in13 cluding under section 337 of the Tariff Act

14 of 1930, title VII of that Act, title III of

15 the Trade Act of 1974, sections 1374 and

16 1377 of the Omnibus Trade and Competi17 tiveness Act of 1988 (19 U.S.C. 3103 and

18 3106), and section 3 of the Act of March

19 3, 1933 (41 U.S.C. 10b–1);

20 (ii) any measure imposed to remedy

21 market disruption or to respond to injury

22 to a domestic industry for which increased

23 imports are a substantial cause or threat

24 thereof, including remedies under sections

25 201 and 406 of the Trade Act of 1974,
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1 and textile import restrictions (including

2 those imposed under section 204 of the

3 Agricultural Act of 1956 (7 U.S.C. 1784));

4 (iii) any action taken under title IV of

5 the Trade Act of 1974, including the en6 actment of a joint resolution under section

7 402(d)(2) of that Act;

8 (iv) any measure imposed to restrict

9 imports of agricultural commodities to pro10 tect food safety or to ensure the orderly

11 marketing of commodities in the United

12 States, including actions taken under sec13 tion 22 of the Agricultural Adjustment Act

14 (7 U.S.C. 624);

15 (v) any measure imposed to restrict

16 imports of any other products in order to

17 protect domestic health or safety;

18 (vi) any measure authorized by, or im19 posed under, a multilateral or bilateral

20 trade agreement to which the United

21 States is a signatory, including the Uru22 guay Round Agreements, the North Amer23 ican Free Trade Agreement, the United

24 States-Israel Free Trade Agreement, and
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1 the United States-Canada Free Trade

2 Agreement; and

3 (vii) any prohibition or restriction on

4 the sale, export, lease, or other transfer of

5 any defense article, defense service, or de6 sign and construction service under the

7 Arms Export Control Act, or on any fi8 nancing provided under that Act.

9 (2) NATIONAL EMERGENCY.—The term ‘‘na10 tional emergency’’ means any unusual or extraor11 dinary threat, which has its source in whole or sub12 stantial part outside the United States, to the na13 tional security, foreign policy, or economy of the

14 United States.

15 (3) AGRICULTURAL COMMODITY.—The term

16 ‘‘agricultural commodity’’ has the meaning given

17 that term in section 102(1) of the Agricultural

18 Trade Act of 1978 (7 U.S.C. 5602(1)).

19 (4) APPROPRIATE COMMITTEES.—The term

20 ‘‘appropriate committees’’ means the Committee on

21 Agriculture, the Committee on International Rela22 tions, the Committee on Ways and Means, and the

23 Committee on Banking and Financial Services of the

24 House of Representatives, and the Committee on

25 Agriculture, Nutrition, and Forestry, the Committee
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1 on Finance, the Committee on Banking, Housing,

2 and Urban Affairs, and the Committee on Foreign

3 Relations of the Senate.

4 (5) CONTRACT SANCTITY.—The term ‘‘contract

5 sanctity’’, with respect to a unilateral economic

6 sanction, refers to the inapplicability of the sanction

7 to—

8 (A) a contract or agreement entered into

9 before the sanction is imposed, or to a valid ex10 port license or other authorization to export;

11 and

12 (B) actions taken to enforce the right to

13 maintain intellectual property rights, in the for14 eign country against which the sanction is im15 posed, which existed before the imposition of

16 the sanction.

17 SEC. 5. GUIDELINES FOR UNILATERAL ECONOMIC SANC18 TIONS LEGISLATION.

19 It is the sense of Congress that any bill or joint reso20 lution that imposes any unilateral economic sanction, or

21 authorizes the imposition of any unilateral economic sanc22 tion by the executive branch, and is considered by the

23 House of Representatives or the Senate, should—
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1 (1) state the foreign policy or national security

2 objective or objectives of the United States that the

3 economic sanction is intended to achieve;

4 (2) provide that the economic sanction termi5 nate 2 years after it is imposed, unless specifically

6 reauthorized by the Congress;

7 (3) provide for contract sanctity;

8 (4) provide authority for the President both to

9 adjust the timing and scope of the sanction and to

10 waive the sanction, if the President determines it is

11 in the national interest to do so;

12 (5)(A) target the sanction as narrowly as pos13 sible on foreign governments, entities, and officials

14 that are responsible for the conduct being targeted;

15 (B) not include restrictions on—

16 (i) the provision of medicine, medical

17 equipment, or food;

18 (ii) assistance under chapter 8 of part I of

19 the Foreign Assistance Act of 1961; or

20 (iii) disaster relief assistance, or assistance

21 for refugees, under part I or chapter 4 of part

22 II of the Foreign Assistance Act of 1961; and

23 (C) seek to minimize any adverse impact on the

24 humanitarian activities of United States and foreign
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1 nongovernmental organizations in any country

2 against which the sanction may be imposed; and

3 (6) provide, to the extent that the Secretary of

4 Agriculture or the Congressional Budget Office finds

5 that—

6 (A) the proposed sanction is likely to re7 strict exports of any agricultural commodity or

8 is likely to result in retaliation against exports

9 of any agricultural commodity from the United

10 States, and

11 (B) the sanction is proposed to be im12 posed, or is likely to be imposed, on a country

13 or countries that constituted, in the preceding

14 calendar year, the market for more than 3 per15 cent of all export sales from the United States

16 of an agricultural commodity,

17 that the Secretary of Agriculture expand agricultural

18 export assistance under United States market devel19 opment, food assistance, or export promotion pro20 grams to offset the likely damage to incomes of pro21 ducers of the affected agricultural commodity or

22 commodities, to the maximum extent permitted by

23 law and by the obligations of the United States

24 under the Agreement on Agriculture referred to in
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1 section 101(d)(2) of the Uruguay Round Agree2 ments Act (19 U.S.C. 3511(d)(2)).

3 SEC. 6. REQUIREMENTS FOR BILL OR JOINT RESOLUTION.

4 (a) PUBLIC COMMENT.—Not later than 15 days prior

5 to the consideration by the committee of primary jurisdic6 tion of a bill or joint resolution that imposes any unilateral

7 economic sanction, or authorizes the imposition of any

8 unilateral economic sanction by the executive branch, the

9 chairman of that committee shall publish a notice which

10 provides an opportunity for interested members of the

11 public to submit comments to the committee on the pro12 posed sanction.

13 (b) COMMITTEE REPORTS.—In the case of any bill

14 or joint resolution described in subsection (a) that is re15 ported by a committee of the House of Representatives

16 or the Senate, the committee report accompanying the bill

17 or joint resolution shall contain a statement of whether

18 the legislation meets all the guidelines specified in para19 graphs (1) through (6) of section 5 and, if the bill or joint

20 resolution does not, an explanation of why it does not. The

21 report shall also include a specific statement of whether

22 the bill or joint resolution includes any restrictions de23 scribed in clauses (i), (ii), or (iii) of section 5(5)(B).

24 (c) REPORTS BY THE PRESIDENT AND SECRETARY

25 OF AGRICULTURE.—
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1 (1) REPORT REQUIRED.—Not later than 30

2 days after a committee of the House of Representa3 tives or the Senate reports any bill or joint resolu4 tion described in subsection (a) or the House of

5 Representatives or the Senate receives such bill or

6 joint resolution from the other House of Congress,

7 the President and the Secretary of Agriculture shall

8 submit to the House filing the report or receiving

9 the bill or joint resolution the reports described in

10 paragraphs (2) and (3).

11 (2) CONTENT OF REPORT BY THE PRESI12 DENT.—The President’s report to the Congress

13 under paragraph (1) shall contain—

14 (A) an assessment of—

15 (i) the likelihood that the proposed

16 unilateral economic sanction will achieve

17 its stated objective within a reasonable pe18 riod of time; and

19 (ii) the impact of the proposed unilat20 eral economic sanction on—

21 (I) humanitarian conditions, in22 cluding the impact on conditions in

23 any specific countries on which the

24 sanction is proposed to be or may be

25 imposed;
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1 (II) humanitarian activities of

2 United States and foreign nongovern3 mental organizations;

4 (III) relations with United States

5 allies;

6 (IV) other United States national

7 security and foreign policy interests;

8 and

9 (V) countries and entities other

10 than those on which the sanction is

11 proposed to be or may be imposed;

12 (B) a description and assessment of—

13 (i) diplomatic and other steps the

14 United States has taken to accomplish the

15 intended objectives of the unilateral sanc16 tion legislation;

17 (ii) the likelihood of multilateral adop18 tion of comparable measures;

19 (iii) comparable measures undertaken

20 by other countries;

21 (iv) alternative measures to promote

22 the same objectives, and an assessment of

23 their potential effectiveness;

24 (v) any obligations of the United

25 States under international treaties or trade
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1 agreements with which the proposed sanc2 tion may conflict;

3 (vi) the likelihood that the proposed

4 sanction will lead to retaliation against

5 United States interests, including agricul6 tural interests; and

7 (vii) whether the achievement of the

8 objectives of the proposed sanction out9 weighs any likely costs to United States

10 foreign policy, national security, economic,

11 and humanitarian interests, including any

12 potential harm to United States business,

13 agriculture, and consumers, and any poten14 tial harm to the international reputation of

15 the United States as a reliable supplier of

16 products, technology, agricultural commod17 ities, and services.

18 (3) CONTENT OF REPORT BY THE SECRETARY

19 OF AGRICULTURE.—The Secretary of Agriculture’s

20 report to Congress under paragraph (1) shall con21 tain an assessment of—

22 (A) the extent to which any country or

23 countries proposed to be sanctioned or likely to

24 be sanctioned are markets that accounted for,

25 in the preceding calendar year, more than 3
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1 percent of all export sales from the United

2 States of any agricultural commodity;

3 (B) the likelihood that exports of agricul4 tural commodities from the United States will

5 be affected by the proposed sanction or by re6 taliation by any country proposed to be sanc7 tioned or likely to be sanctioned, and specific

8 commodities which are most likely to be af9 fected;

10 (C) the likely effect on incomes of pro11 ducers of the specific commodities identified by

12 the Secretary;

13 (D) the extent to which the proposed sanc14 tion would permit foreign suppliers to replace

15 United States suppliers; and

16 (E) the likely effect of the proposed sanc17 tion on the reputation of United States farmers

18 as reliable suppliers of agricultural commodities

19 in general, and of the specific commodities iden20 tified by the Secretary.

21 (d) FEDERAL PRIVATE SECTOR MANDATE.—

22 (1) IN GENERAL.—Any bill or joint resolution

23 described in section 5 shall be considered to include

24 a Federal private sector mandate for purposes of
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1 part B of title IV of the Congressional Budget Act

2 of 1974.

3 (2) REPORT BY THE CONGRESSIONAL BUDGET

4 OFFICE.—The report by the Congressional Budget

5 Office pursuant to paragraph (1) shall include an

6 assessment of the likely short-term and long-term

7 costs of the proposed sanction to the United States

8 economy, including the potential impact on United

9 States trade performance, employment, and growth,

10 the international reputation of the United States as

11 a reliable supplier of products, agricultural commod12 ities, technology, and services, and the economic

13 well-being and international competitive position of

14 United States industries, firms, workers, farmers,

15 and communities.

16 SEC. 7. REQUIREMENTS FOR EXECUTIVE ACTION.

17 (a) IN GENERAL.—

18 (1) ADVANCE NOTICE.—

19 (A) NOTICE OF INTENT TO IMPOSE SANC20 TION.—Notwithstanding any other provision of

21 law, the President shall publish notice in the

22 Federal Register at least 45 days in advance of

23 the imposition of any new unilateral economic

24 sanction with respect to a foreign country or

25 foreign entity of the President’s intention to im-
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1 plement such sanction. The purpose of such no2 tice shall be to allow the formulation of an ef3 fective sanction that advances United States

4 national security and economic interests, and to

5 provide an opportunity for negotiations to

6 achieve the objectives specified in the law au7 thorizing imposition of the unilateral economic

8 sanction.

9 (B) WAIVER OF ADVANCE ANNOUNCEMENT

10 REQUIREMENT.—The President may waive the

11 provisions of subparagraph (A) in the case of

12 any new unilateral economic sanction that in13 volves freezing the assets of a foreign country

14 or entity if the President determines that the

15 national interest would be jeopardized by the

16 requirements of this section.

17 (2) NEW UNILATERAL ECONOMIC SANCTION.—

18 For purposes of this section, the term ‘‘new unilat19 eral economic sanction’’ means a unilateral economic

20 sanction imposed pursuant to a law enacted after

21 the date of the enactment of this Act or a sanction

22 imposed after such date of enactment pursuant to

23 the International Emergency Economic Powers Act

24 (50 U.S.C. 1701 et seq.).

25 (b) CONSULTATION.—
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1 (1) APPROPRIATE COMMITTEES.—The Presi2 dent shall consult with the appropriate committees

3 regarding any proposed new unilateral economic

4 sanction, including consultations regarding efforts to

5 achieve or increase multilateral cooperation on the

6 issues or problems prompting the proposed sanction.

7 (2) CLASSIFIED CONSULTATIONS.—Such con8 sultations may be conducted on a classified basis if

9 disclosure would threaten the national security of

10 the United States.

11 (c) PUBLIC HEARINGS; RECORD.—The President

12 shall publish a notice in the Federal Register of the oppor13 tunity for interested persons to submit comments on any

14 proposed new unilateral economic sanction.

15 (d) REQUIREMENTS FOR EXECUTIVE BRANCH SANC16 TIONS.—Any new unilateral economic sanction imposed by

17 the President—

18 (1) shall—

19 (A) include an assessment of whether the

20 sanction is likely to achieve a specific United

21 States foreign policy or national security objec22 tive within a reasonable period of time, which

23 shall be specified, and whether the achievement

24 of the objectives of the sanction outweighs any

25 costs to United States national interests;
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1 (B) provide for contract sanctity, except in

2 the case of a contract—

3 (i) the execution of which would be

4 contrary to law in the absence of the pro5 posed sanction, such as a contract to deal

6 illicitly in controlled substances;

7 (ii) that deals in assets that would be

8 frozen as a consequence of the proposed

9 sanction; or

10 (iii) that provides for the supply of ar11 ticles or services directly to a specific per12 son, corporation, government, or unit

13 thereof, or military entity, that is expressly

14 named as a target in the proposed sanc15 tion;

16 (C) terminate not later than 2 years after

17 the sanction is imposed, unless specifically ex18 tended by the President in accordance with the

19 procedures of this section;

20 (D)(i) be targeted as narrowly as possible

21 on foreign governments, entities, and officials

22 that are responsible for the conduct being tar23 geted; and

24 (ii) seek to minimize any adverse impact

25 on the humanitarian activities of United States
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1 and foreign nongovernmental organizations in a

2 country against which the sanction may be im3 posed; and

4 (E) not include any restrictions on the ex5 port (including commercial or Federal financing

6 or support) of food, other agricultural commod7 ities (including fertilizer), medicine, medical

8 supplies, or medical equipment, other than re9 strictions imposed in response to national secu10 rity threats or restrictions involving a country

11 with which the United States is engaged in

12 armed conflict; and

13 (2) should provide, to the extent that the Sec14 retary of Agriculture finds that—

15 (A) a unilateral economic sanction is likely

16 to restrict exports of any agricultural com17 modity from the United States or is likely to

18 risk retaliation against exports of any agricul19 tural commodity from the United States, and

20 (B) the sanction is proposed to be im21 posed, or is likely to be imposed, on a country

22 or countries that constituted, in the preceding

23 calendar year, the market for more than 3 per24 cent of all export sales from the United States

25 of an agricultural commodity,
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1 that the Secretary of Agriculture expand agricultural

2 export assistance under United States market devel3 opment, food assistance, or export promotion pro4 grams to offset the likely damage to incomes of pro5 ducers of the affected agricultural commodity or

6 commodities, to the maximum extent permitted by

7 law and by the obligations of the United States

8 under the Agreement on Agriculture referred to in

9 section 101(d)(2) of the Uruguay Round Agree10 ments Act (19 U.S.C. 3511(d)(2)).

11 (e) REPORT BY THE PRESIDENT.—

12 (1) IN GENERAL.—Prior to imposing any new

13 unilateral economic sanction, the President shall

14 provide a report to the appropriate committees on

15 the proposed sanction. The report shall include the

16 report of the International Trade Commission under

17 subsection (g) (if timely submitted prior to the filing

18 of the report). The report may be provided on a

19 classified basis if disclosure would threaten the na20 tional security of the United States. The President’s

21 report shall contain the following:

22 (A) An explanation of the foreign policy or

23 national security objective or objectives intended

24 to be achieved through the proposed sanction.

25 (B) An assessment of—
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1 (i) the likelihood that the proposed

2 new unilateral economic sanction will

3 achieve its stated objectives within the

4 stated period of time; and

5 (ii) the impact of the proposed new

6 unilateral economic sanction on—

7 (I) humanitarian conditions, in8 cluding the impact on conditions in

9 any specific countries on which the

10 sanction is proposed to be imposed;

11 (II) humanitarian activities of

12 United States and foreign nongovern13 mental organizations;

14 (III) relations with United States

15 allies;

16 (IV) other United States national

17 security and foreign policy interests;

18 and

19 (V) countries and entities other

20 than those on which the sanction is

21 proposed to be imposed.

22 (C) A description and assessment of—

23 (i) diplomatic and other steps the

24 United States has taken to accomplish the
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1 intended objectives of the proposed sanc2 tion;

3 (ii) the likelihood of multilateral adop4 tion of comparable measures;

5 (iii) comparable measures undertaken

6 by other countries;

7 (iv) alternative measures to promote

8 the same objectives, and an assessment of

9 their potential effectiveness;

10 (v) any obligations of the United

11 States under international treaties or trade

12 agreements with which the proposed sanc13 tion may conflict;

14 (vi) the likelihood that the proposed

15 sanction will lead to retaliation against

16 United States interests, including agricul17 tural interests; and

18 (vii) whether the achievement of the

19 objectives of the proposed sanction out20 weighs any likely costs to United States

21 foreign policy, national security, economic,

22 and humanitarian interests, including any

23 potential harm to United States business,

24 agriculture, and consumers, and any poten25 tial harm to the international reputation of
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1 the United States as a reliable supplier of

2 products, technology, agricultural commod3 ities, and services.

4 (2) REPORT ON OTHER SANCTIONS.—In the

5 case of any unilateral economic sanction that is im6 posed after the date of the enactment of this Act,

7 other than a new unilateral economic sanction de8 scribed in subsection (a)(1) or a sanction that is a

9 continuation of a sanction in effect on the date of

10 the enactment of this Act, the President shall, not

11 later than 30 days after imposing such sanction,

12 submit to the appropriate committees a report de13 scribed in paragraph (1) relating to such sanction.

14 Such report may be provided on a classified basis if

15 disclosure would threaten the national security of

16 the United States.

17 (f) REPORT BY THE SECRETARY OF AGRI18 CULTURE.—Prior to the imposition of a new unilateral

19 economic sanction by the President, the Secretary of Agri20 culture shall submit to the appropriate committees a re21 port which shall contain an assessment of—

22 (1) the extent to which any country or countries

23 proposed to be sanctioned are markets that ac24 counted for, in the preceding calendar year, more
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1 than 3 percent of all export sales from the United

2 States of any agricultural commodity;

3 (2) the likelihood that exports of agricultural

4 commodities from the United States will be affected

5 by the proposed sanction or by retaliation by any

6 country proposed to be sanctioned, including specific

7 commodities which are most likely to be affected;

8 (3) the likely effect on incomes of producers of

9 the specific commodities identified by the Secretary;

10 (4) the extent to which the proposed sanction

11 would permit foreign suppliers to replace United

12 States suppliers; and

13 (5) the likely effect of the proposed sanction on

14 the reputation of United States farmers as reliable

15 suppliers of agricultural commodities in general, and

16 of the specific commodities identified by the Sec17 retary.

18 (g) REPORT BY THE UNITED STATES INTER19 NATIONAL TRADE COMMISSION.—Before imposing a uni20 lateral economic sanction, the President shall make a

21 timely request to the United States International Trade

22 Commission for a report on the likely short-term and long23 term costs of the proposed sanction to the United States

24 economy, including the potential impact on United States

25 trade performance, employment, and growth, the inter-
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1 national reputation of the United States as a reliable sup2 plier of products, agricultural commodities, technology,

3 and services, and the economic well-being and inter4 national competitive position of United States industries,

5 firms, workers, farmers, and communities.

6 (h) WAIVER IN CASE OF NATIONAL EMERGENCY.—

7 The President may waive any of the requirements of sub8 sections (a), (b), (c), (d)(1)(B), (e)(1), (f), and (g), in the

9 event that the President determines that there exists a na10 tional emergency that requires the exercise of the waiver.

11 In the event of such a waiver, the requirements waived

12 shall be met during the 60-day period immediately fol13 lowing the imposition of the unilateral economic sanction,

14 and the sanction shall terminate 90 days after being im15 posed unless such requirements are met. The President

16 may also waive any of the requirements of paragraphs

17 (1)(D), (1)(E), and (2) of subsection (d) with respect to

18 a new unilateral economic sanction in the event that the

19 President determines that the new unilateral economic

20 sanction is related to actual or imminent armed conflict

21 involving the United States.

22 (i) SANCTIONS REVIEW COMMITTEE.—

23 (1) ESTABLISHMENT.—There is established

24 within the executive branch of the Government an

25 interagency committee, which shall be known as the
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1 ‘‘Sanctions Review Committee’’, which shall have the

2 responsibility of coordinating United States policy

3 regarding unilateral economic sanctions and of pro4 viding appropriate recommendations to the President

5 prior to any decision regarding the implementation

6 of any unilateral economic sanction. The Committee

7 shall be composed of the following 11 members, and

8 any other member the President deems appropriate:

9 (A) The Secretary of State.

10 (B) The Secretary of the Treasury.

11 (C) The Secretary of Defense.

12 (D) The Secretary of Agriculture.

13 (E) The Secretary of Commerce.

14 (F) The Secretary of Energy.

15 (G) The United States Trade Representa16 tive.

17 (H) The Director of the Office of Manage18 ment and Budget.

19 (I) The Chairman of the Council of Eco20 nomic Advisers.

21 (J) The Assistant to the President for Na22 tional Security Affairs.

23 (K) The Assistant to the President for

24 Economic Policy.
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1 (2) CHAIR.—The President shall designate one

2 of the members specified in paragraph (1) to serve

3 as chair of the Sanctions Review Committee.

4 (j) INAPPLICABILITY OF OTHER PROVISIONS.—This

5 section applies notwithstanding any other provision of law.

6 SEC. 8. PRESIDENTIAL WAIVER AUTHORITY FOR CERTAIN

7 SANCTIONS.

8 (a) AUTHORITY.—Notwithstanding any other provi9 sion of this or any other Act, the President may waive

10 the application of any sanction or prohibition (or portion

11 thereof) contained in section 101 or 102 of the Arms Ex12 port Control Act, section 620E(e) of the Foreign Assist13 ance Act of 1961, or section 2(b)(4) of the Export-Import

14 Bank Act of 1945 for periods of 6 months each if he deter15 mines that such a waiver would advance the purposes of

16 such Acts or the national security interests of the United

17 States.

18 (b) CONSULTATION.—Prior to exercising the waiver

19 authority under subsection (a), the President shall consult

20 with the appropriate committees. Such consultations may

21 be conducted on a classified basis if disclosure would

22 threaten the national security of the United States.

23 (c) REPORTS.—At least once in every 6-month period

24 after exercising the waiver authority under subsection (a),

25 the President shall report to the appropriate committees
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1 with respect to the actions taken, during that 6-month pe2 riod, concerning the acts of the foreign country or person

3 concerned prompting the sanctions for which the waiver

4 was granted, and the reasons that continuation of such

5 waiver remains in the national security interest of the

6 United States.

7 SEC. 9. ANNUAL REPORTS.

8 (a) ANNUAL REPORT.—Not later than 6 months

9 after the date of the enactment of this Act, and annually

10 thereafter, unless otherwise required by law, the President

11 shall submit to the appropriate committees a report detail12 ing with respect to each country or entity against which

13 a unilateral economic sanction has been imposed—

14 (1) the extent to which the sanction has

15 achieved foreign policy or national security objectives

16 of the United States with respect to that country or

17 entity;

18 (2) the extent to which the sanction has harmed

19 humanitarian interests in that country, the country

20 in which that entity is located, or in other countries;

21 and

22 (3) the impact of the sanction on other national

23 security and foreign policy interests of the United

24 States, including relations with countries friendly to
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1 the United States, and on the United States econ2 omy.

3 (b) REPORT BY THE UNITED STATES INTER4 NATIONAL TRADE COMMISSION.—Not later than 6

5 months after the date of the enactment of this Act, and

6 annually thereafter, the United States International Trade

7 Commission shall report to the appropriate committees on

8 the costs, individually and in the aggregate, of all unilat9 eral economic sanctions in effect under United States law,

10 regulation, or Executive order. The calculation of such

11 costs shall include an assessment of the impact of such

12 measures on the international reputation of the United

13 States as a reliable supplier of products, agricultural com14 modities, technology, and services.

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