I

107TH CONGRESS

1ST SESSION H. R. 1828

To require the President to report annually to the Congress on the effects

of the imposition of unilateral economic sanctions by the United States.

IN THE HOUSE OF REPRESENTATIVES

MAY 14, 2001

Mr. SAWYER introduced the following bill; which was referred to the Committee on International Relations, and in addition to the Committees on

Ways and Means, 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 report annually to the Congress

on the effects of the imposition of unilateral economic

sanctions by the United States.

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 ‘‘Unilateral Sanction

5 Reporting Act’’.

6 SEC. 2. FINDINGS.

7 The Congress finds that—
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1 (1) in the face of a more politically complicated

2 and commercially integrated world in the post-cold

3 war era, the unilateral economic sanctions policy of

4 the United States must become a more sophisticated

5 tool in order to better serve the national interests of

6 the United States;

7 (2) Members of Congress need more detailed

8 and unbiased information that can be compared on

9 a yearly basis in order to evaluate accurately the

10 costs and benefits of unilateral economic sanctions;

11 and

12 (3) a comprehensive annual report to pertinent

13 congressional committees from the executive branch

14 on sanctions policy will allow the United States Gov15 ernment to view economic sanctions in a more effec16 tive, targeted, and flexible manner and better ana17 lyze the success of meeting foreign policy objectives.

18 SEC. 3. ANNUAL REPORT TO CONGRESS BY THE PRESI19 DENT.

20 (a) IN GENERAL.—The President shall, in consulta21 tion with the Secretaries of State, Commerce, Defense,

22 Agriculture, Energy, and Transportation, and the United

23 States Trade Representative, by not later than January

24 31 of each year, report to all committees of Congress with
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1 jurisdiction affected by United States policies on unilateral

2 economic sanctions on—

3 (1) the costs and benefits within the United

4 States, and, to the extent possible, the economic im5 plications for the targeted foreign countries or enti6 ties concerned, of the imposition of unilateral eco7 nomic sanctions by the United States during the

8 preceding calendar year; and

9 (2) the policy goals intended to be achieved by

10 such sanctions, and the extent to which such goals

11 were achieved.

12 (b) SPECIFIC REPORTS.—

13 (1) SECRETARY OF STATE.—The Secretary of

14 State shall prepare and submit to the President an

15 annual report on the policy goals intended to be

16 achieved by unilateral economic sanctions imposed

17 by the United States, and the extent to which such

18 goals were achieved. The report shall cover the same

19 period as the report by the President under sub20 section (a) and shall be included with the President’s

21 report under subsection (a).

22 (2) ASSISTANT SECRETARY OF COMMERCE FOR

23 INFORMATION AND TECHNOLOGY.—The Assistant

24 Secretary of Commerce for Information and Tech25 nology shall prepare and submit to the President an
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1 annual report on the costs and benefits on the infor2 mation and technology sectors within the United

3 States, and, to the extent possible, the implications

4 for the information and technology sectors in tar5 geted foreign countries or entities concerned, of the

6 imposition of unilateral economic sanctions by the

7 United States. The report shall cover the same pe8 riod as the report by the President under subsection

9 (a) and shall be included with the President’s report

10 under subsection (a).

11 (3) SECURITIES AND EXCHANGE COMMIS12 SION.—The Securities and Exchange Commission

13 shall prepare and submit to the President an annual

14 report on the costs and benefits on securities mar15 kets within the United States, and, to the extent

16 possible, the implications for the securities markets

17 of targeted foreign countries or entities concerned,

18 of the imposition of unilateral economic sanctions by

19 the United States. The report shall cover the same

20 period as the report by the President under sub21 section (a) and shall be included with the President’s

22 report under subsection (a).

23 (4) SMALL BUSINESS ADMINISTRATION.—The

24 Administrator of the Small Business Administration

25 shall prepare and submit to the President an annual
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1 report on the costs and benefits on small business

2 concerns in the United States, and, to the extent

3 possible, the implications for small businesses of tar4 geted foreign countries or entities concerned, of the

5 imposition of unilateral economic sanctions by the

6 United States. The report shall cover the same pe7 riod as the report by the President under subsection

8 (a) and shall be included with the President’s report

9 under subsection (a).

10 (c) DETAILS OF REPORTS.—

11 (1) IN GENERAL.—Each report under sub12 section (a) shall set forth the costs and benefits of

13 unilateral economic sanctions to specific sectors of

14 the United States economy, including the services

15 sector, expressed in terms of economic indicators.

16 Among other indicators, the report shall compare

17 levels of imports and exports of domestic products

18 and services with those of internationally competitive

19 products and services. The analyses in the reports

20 under subsection (a) shall be presented in a con21 sistent fashion so as to ensure an accurate compari22 son of the costs and effects of unilateral economic

23 sanctions from year to year. Each report shall, as

24 well as stating current effects, project future effects

25 of the unilateral economic sanctions at issue.
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1 (2) ECONOMIC EFFECTS ON TARGETED COUN2 TRIES OR ENTITIES.—To the extent possible, each

3 report shall address the economic effects of unilat4 eral economic sanctions on the countries and entities

5 on which the sanctions are imposed, and the extent

6 to which the foreign policy goals of the United

7 States have been achieved by the sanctions. The re8 port shall also project the economic effects of the

9 continued application of unilateral economic sanc10 tions on each such country or entity and how this

11 will further achieve the foreign policy goals of the

12 United States.

13 (3) RELATIONSHIP TO SPECIFIC SANCTIONS.—

14 The analyses in each report under subsection (a)

15 and (b) shall be made with respect to the specific

16 provision of law or Executive Order imposing the

17 sanctions addressed in the report.

18 (d) APPLICABILITY.—The reports under this section

19 shall apply to unilateral economic sanctions imposed be20 fore the enactment of this Act that are in effect during

21 the period covered by the reports, and to unilateral eco22 nomic sanctions imposed on or after the date of the enact23 ment of this Act.

24 SEC. 4. DEFINITIONS.

25 In this Act:
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1 (1) UNILATERAL ECONOMIC SANCTION.—

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

3 economic sanction’’ means any prohibition, re4 striction, or condition on economic activity, in5 cluding economic assistance, with respect to a

6 foreign country or foreign entity that is im7 posed by the United States for reasons of for8 eign policy or national security, including any of

9 the measures described in subparagraph (B),

10 except in a case in which the United States im11 poses the measure pursuant to a multilateral

12 regime and the other members of that regime

13 have agreed to impose substantially equivalent

14 measures.

15 (B) PARTICULAR MEASURES.—The meas16 ures referred to in subparagraph (A) are the

17 following:

18 (i) The suspension, restriction, or pro19 hibition of exports or imports of any prod20 uct, technology, or service to or from a for21 eign country or entity.

22 (ii) The suspension of, or any restric23 tion or prohibition on, financial trans24 actions with a foreign country or entity.
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1 (iii) The suspension of, or any restric2 tion or prohibition on, direct or indirect in3 vestment in or from a foreign country or

4 entity.

5 (iv) The imposition of increased tar6 iffs on, or other restrictions on imports of,

7 products of a foreign country or entity, in8 cluding the denial, revocation, or condi9 tioning of nondiscriminatory trade treat10 ment (normal trade relations treatment).

11 (v) The suspension of, or any restric12 tion or prohibition on—

13 (I) the authority of the Export14 Import Bank of the United States to

15 give approval to the issuance of any

16 guarantee, insurance, or extension of

17 credit in connection with the export of

18 goods or services to a foreign country

19 or entity;

20 (II) the authority of the Trade

21 and Development Agency to provide

22 assistance in connection with projects

23 in a foreign country or in which a

24 particular foreign entity participates;

25 or
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1 (III) the authority of the Over2 seas Private Investment Corporation

3 to provide insurance, reinsurance, or

4 financing, or conduct other activities

5 in connection with projects in a for6 eign country or in which a particular

7 foreign entity participates.

8 (vi) Any prohibition or restriction on

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

10 any defense article, defense service, or de11 sign and construction service under the

12 Arms Export Control Act, or on any fi13 nancing provided under that Act.

14 (vii) A requirement that the United

15 States representative to an international fi16 nancial institution vote against any loan or

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

18 foreign country or particular foreign entity.

19 (viii) A measure imposing any restric20 tion or condition on economic activity on

21 any foreign government or entity on the

22 grounds that such government or entity

23 does business in or with a foreign country.

24 (ix) A measure imposing any restric25 tion or condition on economic activity on
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1 any person that is a national of a foreign

2 country, or on any government or other en3 tity of a foreign country, on the grounds

4 that the government of that country has

5 not taken measures in cooperation with, or

6 similar to, sanctions imposed by the

7 United States on a third country.

8 (x) The suspension of, or any restric9 tion or prohibition on, travel rights or air

10 transportation to or from a foreign coun11 try.

12 (xi) Any restriction on the filing or

13 maintenance in a foreign country of any

14 proprietary interest in intellectual property

15 rights (including patents, copyrights, and

16 trademarks), including payment of patent

17 maintenance fees.

18 (C) MULTILATERAL REGIME.—In this

19 paragraph, the term ‘‘multilateral regime’’

20 means an agreement, arrangement, or obliga21 tion under which the United States cooperates

22 with other countries in restricting commerce for

23 reasons of foreign policy or national security,

24 including—
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1 (i) obligations under resolutions of the

2 United Nations;

3 (ii) nonproliferation and export con4 trol arrangements, such as the Australia

5 Group, the Nuclear Supplier’s Group, the

6 Missile Technology Control Regime, and

7 the Wassenaar Arrangement;

8 (iii) treaty obligations, such as under

9 the Chemical Weapons Convention, the

10 Treaty on the Non-Proliferation of Nuclear

11 Weapons, and the Biological Weapons Con12 vention; and

13 (iv) agreements concerning protection

14 of the environment, such as the Inter15 national Convention for the Conservation

16 of Atlantic Tunas, the Declaration of Pan17 ama referred to in section 2(a)(1) of the

18 International Dolphin Conservation Act

19 (16 U.S.C. 1361 note), the Convention on

20 International Trade in Endangered Spe21 cies, the Montreal Protocol on Substances

22 that Deplete the Ozone Layer, and the

23 Basel Convention on the Control of

24 Transboundary Movements of Hazardous

25 Wastes.
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1 (D) ECONOMIC ASSISTANCE.—In this para2 graph, the term ‘‘economic assistance’’ means—

3 (i) any assistance under part I or

4 chapter 2, 4, 5, or 8 of part II of the For5 eign Assistance Act of 1961 (including

6 programs under title IV of chapter 2, re7 lating to the Overseas Private Investment

8 Corporation), any benefits under part IV

9 of that Act (relating to the Enterprise for

10 the Americas Initiative), or any benefits

11 under part V of that Act, relating to trop12 ical forest preservation;

13 (ii) the provision of agricultural com14 modities, or other assistance or benefits,

15 under the Agricultural Trade Development

16 and Assistance Act of 1954, including the

17 Enterprise for the Americas Initiative; and

18 (iii) any assistance under the FREE19 DOM Support Act or the Support for East

20 European Democracy (SEED) Act of

21 1989.

22 (E) FINANCIAL TRANSACTION.—In this

23 paragraph, the term ‘‘financial transaction’’ has

24 the meaning given that term in section

25 1956(c)(4) of title 18, United States Code.
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1 (F) INVESTMENT.—In this paragraph, the

2 term ‘‘investment’’ means any contribution or

3 commitment of funds, commodities, services,

4 patents, or other forms of intellectual property,

5 processes, or techniques, including—

6 (i) a loan or loans;

7 (ii) the purchase of a share of owner8 ship;

9 (iii) participation in royalties, earn10 ings, or profits; and

11 (iv) the furnishing or commodities or

12 services pursuant to a lease or other con13 tract.

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

15 economic sanction’’ does not include—

16 (i) any measure imposed to remedy

17 unfair trade practices or to enforce United

18 States rights under a trade agreement, in19 cluding under section 337 of the Tariff Act

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

21 the Trade Act of 1974, and sections 1374,

22 1376, and 1377 of the Omnibus Trade and

23 Competitiveness Act of 1988 (19 U.S.C.

24 3103, 3106, and 3107);
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1 (ii) any measure imposed to remedy

2 market disruption or to respond to injury

3 to a domestic industry for which increased

4 imports are a substantial cause or threat

5 thereof, including remedies under sections

6 201, 406, 421, and 422 of the Trade Act

7 of 1974, and textile import restrictions (in8 cluding those imposed under section 204 of

9 the Agricultural Act of 1956 (7 U.S.C.

10 1784));

11 (iii) any measure imposed to restrict

12 imports of agricultural commodities to pro13 tect food safety or to ensure the orderly

14 marketing of commodities in the United

15 States, including actions taken under sec16 tion 22 of the Agricultural Adjustment Act

17 (7 U.S.C. 624);

18 (iv) any measure imposed to restrict

19 imports of any other products in order to

20 protect domestic health or safety; and

21 (v) any measure authorized by, or im22 posed under, a multilateral or bilateral

23 trade agreement to which the United

24 States is a signatory, including the Uru25 guay Round Agreements (as defined in sec-
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1 tion 2 of the Uruguay Round Agreements

2 Act (19 U.S.C. 3501)), the North Amer3 ican Free Trade Agreement, the United

4 States-Israel Free Trade Agreement, and

5 the United States-Canada Free Trade

6 Agreement.

7 (2) AGRICULTURAL COMMODITY.—The term

8 ‘‘agricultural commodity’’ has the meaning given

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

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

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