I

104TH CONGRESS

2D SESSION H. R. 4014

To require the President to certify whether the commitments made in the

side agreements on the environment and on labor to the North American

Free Trade Agreement are being met, and to remove certain benefits

from a country that is certified as not meeting those commitments.

IN THE HOUSE OF REPRESENTATIVES

AUGUST 2, 1996

Mr. WELDON of Pennsylvania (for himself, Mr. CLAY, Mr. QUINN, Mr.

MCHUGH, Mr. STEARNS, Mr. TRAFICANT, Mr. ENGLISH of Pennsylvania,

Mr. REGULA, Ms. KAPTUR, Mr. GOODLING, and Mr. NEY) introduced the

following bill; which was referred to the Committee on Ways and Means,

and in addition to the Committees on International Relations, 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 require the President to certify whether the commitments

made in the side agreements on the environment and

on labor to the North American Free Trade Agreement

are being met, and to remove certain benefits from a

country that is certified as not meeting those commitments.

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. PRESIDENTIAL CERTIFICATIONS.

2 (a) CERTIFICATIONS REGARDING ENVIRONMENTAL

3 AGREEMENT.—

4 (1) ANNUAL CERTIFICATIONS.—The President

5 shall, on the basis of the reports prepared under

6 paragraph (2), submit to the Congress, not later

7 than May 31 of each year, a report that certifies

8 whether or not each NAFTA country is meeting

9 commitments made in the North American Agree10 ment on Environmental Cooperation—

11 (A) to ensure that the regulations of that

12 country establish and enforce levels of environ13 mental protection that meet the requirements of

14 its constitution and other laws setting forth the

15 country’s policy on environmental protection;

16 and

17 (B) to effectively enforce the laws referred

18 to in paragraph (1).

19 (2) BASIS OF CERTIFICATION.—The Adminis20 trator of the Environmental Protection Agency shall

21 prepare for the President an annual report on the

22 enforcement by each NAFTA country of its laws

23 governing environmental protection, and its progress

24 in protecting the environment in accordance with its

25 development. In doing so, the Administrator shall

26 consider the country’s—
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1 (A) air quality standards;

2 (B) water effluent standards; and

3 (C) hazardous waste disposal standards.

4 Each report under this paragraph shall be transmit5 ted to the President not later than 30 days before

6 the date on which the President is required to sub7 mit his report under paragraph (1).

8 (b) CERTIFICATIONS REGARDING LABOR AGREE9 MENT.—

10 (1) ANNUAL CERTIFICATIONS.—The President

11 shall, on the basis of the reports prepared under

12 paragraph (2), submit to the Congress, not later

13 than May 31 of each year, a report that certifies

14 whether or not each NAFTA country is meeting

15 commitments made in the North American Agree16 ment on Labor Cooperation to comply with the ob17 jectives of that Agreement to promote and improve

18 laws protecting worker rights and to promote com19 pliance with these laws by using appropriate meth20 ods such as—

21 (A) monitoring and on-site inspection by

22 trained;

23 (B) encouragement of voluntary compli24 ance by employers;
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1 (C) mandatory reporting by employers to

2 appropriate governmental authorities; and

3 (E) enforcement actions.

4 (2) BASIS OF CERTIFICATION.—The Secretary

5 of Labor shall prepare for the President an annual

6 report on the enforcement by each NAFTA country

7 of its laws protecting worker rights. In doing so, the

8 Secretary shall consider the country’s enforcement of

9 such laws in accordance with the following labor

10 principles (as stated in the Preamble of the North

11 American Agreement on Labor Cooperation):

12 (A) Freedom of association.

13 (B) The right to bargain collectively.

14 (C) The right to strike.

15 (D) Prohibition on forced labor.

16 (E) Restrictions on labor by children and

17 young people.

18 (F) Minimum employment standards.

19 (G) Elimination of employment discrimina20 tion.

21 (H) Equal pay for men and women.

22 (I) Prevention of occupational accidents

23 and diseases.

24 (J) Compensation in cases of work acci25 dents and occupational diseases.
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1 Each report under this paragraph shall be transmit2 ted to the President not later than 30 days before

3 the date on which the President is required to sub4 mit his report under paragraph (1).

5 SEC. 2. DENIAL OF CERTAIN BENEFITS.

6 (a) IN GENERAL.—In any case in which the Presi7 dent certifies in a report submitted under section 1 that

8 a NAFTA country is not meeting commitments made in

9 the North American Agreement on Environmental Co10 operation or the North American Agreement on Labor Co11 operation, then the following shall apply, beginning 30

12 days after the report is submitted, until the next report

13 is submitted under section 1:

14 (1) DENIAL OF UNITED STATES ASSISTANCE.—

15 That country may not receive any United States as16 sistance (other than humanitarian assistance), in17 cluding any loans or other extensions of credit or

18 credit guarantees by the United States.

19 (2) OPPOSITION TO ASSISTANCE BY INTER20 NATIONAL FINANCIAL INSTITUTIONS.—The Presi21 dent shall direct the United States Representative to

22 each international financial institution to use the

23 voice and vote of the United States to oppose any

24 loan or other extension of credit to that country.
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1 (3) IMPOSITION OF TARIFFS.—The President

2 may impose on products of that country, notwith3 standing any other provision of law, tariffs, in addi4 tion to those that would otherwise apply, on prod5 ucts in those sectors of the economy directly related

6 to the failure of the country to meet the commit7 ments made in the applicable agreement.

8 (b) WAIVER.—The President may waive the applica9 tion of any provision of subsection (a) with respect to a

10 country if the President determines that it is in the na11 tional security interests of the United States to do so and

12 the President submits that determination, and the ration13 ale for the determination, to the Congress at least 30 days

14 before the waiver would take effect.

15 SEC. 3. DEFINITIONS.

16 As used in this Act:

17 (1) INTERNATIONAL FINANCIAL INSTITU18 TION.—The term ‘‘international financial institu19 tion’’ has the meaning given that term in section

20 1701(c)(2) of the International Financial Institu21 tions Act (22 U.S.C. 262r(c)(2)).

22 (2) NAFTA COUNTRY.—The term ‘‘NAFTA

23 country’’ has the meaning given that term in section

24 2(4) of the North American Free Trade Agreement

25 Implementation Act (19 U.S.C. 3301(4)).
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1 (3) NORTH AMERICAN AGREEMENT ON ENVI2 RONMENTAL COOPERATION.—The term ‘‘North

3 American Agreement on Environmental Coopera4 tion’’ has the meaning given that term in section

5 532(b)(2) of the North American Free Trade Agree6 ment Implementation Act (19 U.S.C. 3472(b)(2)).

7 (4) NORTH AMERICAN AGREEMENT ON LABOR

8 COOPERATION.—The term ‘‘North American Agree9 ment on Labor Cooperation’’ has the meaning given

10 that term in section 531(b)(2) of the North Amer11 ican Free Trade Agreement Implementation Act (19

12 U.S.C. 3471(b)(2)).

13 (5) UNITED STATES ASSISTANCE.—The term

14 ‘‘United States assistance’’ means any program of

15 assistance or credits provided by the United States

16 to other countries under any provision of law.

Æ