II 

108TH CONGRESS 

1ST SESSION S. 1861

To provide a framework for consideration by the legislative and executive 

branches of proposed unilateral economic sanctions in order to ensure 

coordination of United States policy with respect to trade, security, 

and human rights. 

IN THE SENATE OF THE UNITED STATES 

NOVEMBER 14 (legislative day, NOVEMBER 12), 2003

Mr. LUGAR introduced the following bill; which was read twice and referred 

to the Committee on Foreign Relations 

A BILL

To provide a framework for consideration by the legislative 

and executive branches of proposed unilateral economic 

sanctions in order to ensure coordination of United 

States policy with respect to trade, security, and human 

rights.

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 ‘‘Sanctions Policy Re5 form Act’’. 
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1 SEC. 2. PURPOSE. 

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

3 framework for consideration by the legislative and execu4 tive branches of unilateral economic sanctions in order to 

5 ensure coordination of United States policy with respect 

6 to trade, security, and human rights. 

7 SEC. 3. STATEMENT OF POLICY. 

8 It is the policy of the United States—

9 (1) to pursue United States interests through 

10 vigorous and effective diplomatic, political, commer11 cial, charitable, educational, cultural, and strategic 

12 engagement with other countries, while recognizing 

13 that the national security interests of the United 

14 States may sometimes require the imposition of eco15 nomic sanctions on other countries; 

16 (2) to expand trade and investment with the de17 veloping world to create the conditions for free mar18 ket democracies and the rule of law; 

19 (3) to foster multilateral cooperation on vital 

20 matters of United States foreign policy, including 

21 promoting human rights and democracy, combating 

22 international terrorism, proliferation of weapons of 

23 mass destruction, and international narcotics traf24 ficking, and ensuring adequate environmental pro25 tection; 
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1 (4) 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 (5) 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 (6) to avoid the use of restrictions on exports 

13 of agricultural commodities as a foreign policy weap14 on; 

15 (7) 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 

19 (8) when economic sanctions are necessary—

20 (A) to target them as narrowly as possible 

21 on those foreign governments, entities, and offi22 cials that are responsible for the conduct being 

23 targeted, thereby minimizing unnecessary or 

24 disproportionate harm to individuals who are 

25 not responsible for such conduct; and 
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1 (B) to the extent feasible, to avoid any ad2 verse impact of economic sanctions on the hu3 manitarian activities of United States and for4 eign nongovernmental organizations in a coun5 try against which sanctions are imposed. 

6 SEC. 4. DEFINITIONS. 

7 In this Act: 

8 (1) UNILATERAL ECONOMIC SANCTION.—

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

10 economic sanction’’ means any prohibition, re11 striction, or condition on economic activity, in12 cluding economic assistance, with respect to a 

13 foreign country or foreign entity that is im14 posed by the United States for reasons of for15 eign policy or national security, including any of 

16 the measures described in subparagraph (B), 

17 except in a case in which the United States im18 poses the measure pursuant to a multilateral 

19 regime and the other members of that regime 

20 have agreed to impose substantially equivalent 

21 measures. 

22 (B) PARTICULAR MEASURES.—The meas23 ures referred to in subparagraph (A) are the 

24 following: 
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1 (i) The suspension of, or any restric2 tion or prohibition on, exports or imports 

3 of any product, technology, or service to or 

4 from a foreign country or entity. 

5 (ii) The suspension of, or any restric6 tion or prohibition on, financial trans7 actions with a foreign country or entity. 

8 (iii) The suspension of, or any restric9 tion or prohibition on, direct or indirect in10 vestment in or from a foreign country or 

11 entity. 

12 (iv) The imposition of increased tar13 iffs on, or other restrictions on imports of, 

14 products of a foreign country or entity, in15 cluding the denial, revocation, or condi16 tioning of nondiscriminatory (normal trade 

17 relations) trade treatment. 

18 (v) The suspension of, or any restric19 tion or prohibition on—

20 (I) the authority of the Export21 Import Bank of the United States to 

22 give approval to the issuance of any 

23 guarantee, insurance, or extension of 

24 credit in connection with the export of 
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1 goods or services to a foreign country 

2 or entity; 

3 (II) the authority of the Trade 

4 and Development Agency to provide 

5 assistance in connection with projects

6 in a foreign country or in which a 

7 particular foreign entity participates; 

8 or 

9 (III) the authority of the Over10 seas Private Investment Corporation 

11 to provide insurance, reinsurance, or 

12 financing or conduct other activities 

13 in connection with projects in a for14 eign country or in which a particular 

15 foreign entity participates. 

16 (vi) A requirement that the United 

17 States representative to an international fi18 nancial institution vote against any loan or 

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

20 foreign country or particular foreign entity. 

21 (vii) A measure imposing any restric22 tion or condition on economic activity of 

23 any foreign government or entity on the 

24 ground that such government or entity 

25 does business in or with a foreign country. 
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1 (viii) A measure imposing any restric2 tion or condition on economic activity of 

3 any person that is a national of a foreign 

4 country, or on any government or other en5 tity of a foreign country, on the ground 

6 that the government of that country has 

7 not taken measures in cooperation with, or 

8 similar to, sanctions imposed by the 

9 United States on a third country. 

10 (ix) The suspension of, or any restric11 tion or prohibition on, travel rights or air 

12 transportation to or from a foreign coun13 try. 

14 (x) Any restriction on the filing or 

15 maintenance in a foreign country of any 

16 proprietary interest in intellectual property 

17 rights (including patents, copyrights, and 

18 trademarks), including payment of patent 

19 maintenance fees. 

20 (C) MULTILATERAL REGIME.—As used in 

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

22 means an agreement, arrangement, or obliga23 tion under which the United States cooperates 

24 with other countries in restricting commerce for 
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1 reasons of foreign policy or national security, 

2 including—

3 (i) obligations under resolutions of the 

4 United Nations; 

5 (ii) nonproliferation and export con6 trol arrangements, such as the Australia 

7 Group, the Nuclear Supplier’s Group, the 

8 Missile Technology Control Regime, and 

9 the Wassenaar Arrangement; 

10 (iii) treaty obligations, such as under 

11 the Chemical Weapons Convention, the 

12 Treaty on the Non-Proliferation of Nuclear 

13 Weapons, and the Biological Weapons Con14 vention; and 

15 (iv) agreements concerning protection 

16 of the environment, such as the Inter17 national Convention for the Conservation 

18 of Atlantic Tunas, the Declaration of Pan19 ama referred to in section 2(a)(1) of the 

20 International Dolphin Conservation Act 

21 (16 U.S.C. 1361 note), the Convention on 

22 International Trade in Endangered Spe23 cies, the Montreal Protocol on Substances 

24 that Deplete the Ozone Layer, and the 

25 Basel Convention on the Control of 
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1 Transboundary Movements of Hazardous 

2 Wastes. 

3 (D) ECONOMIC ASSISTANCE.—As used in 

4 this paragraph, the term ‘‘economic assistance’’ 

5 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 of part I of 

10 that Act, relating to the Overseas Private 

11 Investment Corporation), other than—

12 (I) assistance under chapter 8 of 

13 part I of that Act, 

14 (II) disaster relief assistance, in15 cluding any assistance under chapter 

16 9 of part I of that Act, 

17 (III) assistance which involves 

18 the provision of food (including mone19 tization of food) or medicine, or 

20 (IV) assistance for refugees; and 

21 (ii) the provision of agricultural com22 modities, other than food, under the Agri23 cultural Trade Development and Assist24 ance Act of 1954. 
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1 (E) FINANCIAL TRANSACTION.—As used in 

2 this paragraph, the term ‘‘financial trans3 action’’ has the meaning given that term in sec4 tion 1956(c)(4) of title 18, United States Code.

5 (F) INVESTMENT.—As used in this para6 graph, the term ‘‘investment’’ means any con7 tribution or commitment of funds, commodities, 

8 services, patents, or other forms of intellectual 

9 property, processes, or techniques, including—

10 (i) a loan or loans; 

11 (ii) the purchase of a share of owner12 ship; 

13 (iii) participation in royalties, earn14 ings, or profits; and 

15 (iv) the furnishing of commodities or 

16 services pursuant to a lease or other con17 tract. 

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

19 economic sanction’’ does not include—

20 (i) any measure imposed to remedy 

21 unfair trade practices or to enforce United 

22 States rights under a trade agreement, in23 cluding under section 337 of the Tariff Act 

24 of 1930 (19 U.S.C. 1337), title VII of that 

25 Act (19 U.S.C. 1671 et seq.), title III of 
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1 the Trade Act of 1974 (19 U.S.C. 2411 et 

2 seq.), sections 1374 and 1377 of the Omni3 bus Trade and Competitiveness Act of 

4 1988 (19 U.S.C. 3103 and 3106), and sec5 tion 3 of the Act of March 3, 1933 (41 

6 U.S.C. 10b–1);

7 (ii) any measure imposed to remedy 

8 market disruption or to respond to injury 

9 to a domestic industry for which increased 

10 imports are a substantial cause or threat 

11 thereof, including remedies under sections 

12 201 and 406 of the Trade Act of 1974 (19 

13 U.S.C. 2251 and 2436), and textile import 

14 restrictions (including those imposed under 

15 section 204 of the Agricultural Act of 1956 

16 (7 U.S.C. 1784)); 

17 (iii) any action taken under title IV of 

18 the Trade Act of 1974 (19 U.S.C. 2431 et 

19 seq.), including the enactment of a joint 

20 resolution under section 402(d)(2) of that 

21 Act; 

22 (iv) any measure imposed to restrict 

23 imports of agricultural commodities to pro24 tect food safety or to ensure the orderly 

25 marketing of commodities in the United 
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1 States, including actions taken under sec2 tion 22 of the Agricultural Adjustment Act 

3 (7 U.S.C. 624); 

4 (v) any measure imposed to restrict 

5 imports of any other products in order to 

6 protect domestic health or safety; 

7 (vi) any measure authorized by, or im8 posed under, a multilateral or bilateral 

9 trade agreement to which the United 

10 States is a signatory, including the Uru11 guay Round Agreements, the North Amer12 ican Free Trade Agreement, the United 

13 States-Israel Free Trade Agreement, the 

14 United States-Jordan Free Trade Agree15 ment, the United States-Chile Free Trade 

16 Agreement, the United States-Singapore 

17 Free Trade Agreement, and the United 

18 States-Canada Free Trade Agreement; 

19 (vii) any prohibition or restriction on 

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

21 any dual-use article under the Export Ad22 ministration Act or similar prohibitions or 

23 restrictions under the International Emer24 gency Economic Powers Act; and 
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1 (viii) any prohibition or restriction on 

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

3 any defense article, defense service, or de4 sign and construction service under the 

5 Arms Export Control Act, or on any fi6 nancing provided under that Act. 

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)). 

11 (3) APPROPRIATE CONGRESSIONAL COMMIT12 TEES.—The term ‘‘appropriate congressional com13 mittees’’ means the Committee on Agriculture, the 

14 Committee on International Relations, the Com15 mittee on Ways and Means, and the Committee on 

16 Financial Services of the House of Representatives, 

17 and the Committee on Agriculture, Nutrition, and 

18 Forestry, the Committee on Finance, and the Com19 mittee on Foreign Relations of the Senate. 

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

21 sanctity’’, with respect to a unilateral economic 

22 sanction, refers to the inapplicability of the sanction 

23 to—

24 (A) a contract or agreement entered into 

25 before the committee of primary jurisdiction 
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1 provides notice of the opportunity for public 

2 comment in the Congressional Record pursuant 

3 to section 6(a) or the President publishes notice 

4 in the Federal Register pursuant to section 

5 7(a), or to a valid export license or other au6 thorization to export; and 

7 (B) actions taken to enforce the right to 

8 maintain intellectual property rights, in the for9 eign country against which the sanction is im10 posed, which existed before the committee of 

11 primary jurisdiction provided notice of the op12 portunity for public comment in the Congres13 sional Record pursuant to section 6(a) or the 

14 President published notice in the Federal Reg15 ister pursuant to section 7(a). 

16 (5) UNILATERAL ECONOMIC SANCTION LEGIS17 LATION.—The term ‘‘unilateral economic sanction 

18 legislation’’ means a bill or joint resolution that im19 poses, or authorizes the imposition of, any unilateral 

20 economic sanction. 

21 SEC. 5. GUIDELINES FOR UNILATERAL ECONOMIC SANC22 TIONS LEGISLATION. 

23 It is the sense of Congress that any unilateral eco24 nomic sanction legislation that is introduced in or reported 
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1 to a House of Congress on or after the date of enactment 

2 of this Act should—

3 (1) state the foreign policy or national security 

4 objective or objectives of the United States that the 

5 economic sanction is intended to achieve; 

6 (2) provide that the economic sanction termi7 nate 2 years after it is imposed, unless specifically 

8 reauthorized by Congress; 

9 (3) provide contract sanctity, except that con10 tract sanctity shall not be required in any case—

11 (A) in which execution of the contract is 

12 contrary to law;

13 (B) in which the contract involves assets 

14 that will be frozen as a consequence of the pro15 posed sanction; or 

16 (C) in which the contract provides for the 

17 supply of goods or services directly to a specific 

18 person, government agency, or military unit 

19 that is expressly named as a target of the pro20 posed sanction; 

21 (4) provide authority for the President both to 

22 adjust the timing and scope of the sanction and to 

23 waive the sanction, if the President determines it is 

24 in the national interest to do so; 
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1 (5)(A) target the sanction as narrowly as pos2 sible on foreign governments, entities, and officials 

3 that are responsible for the conduct being targeted; 

4 (B) not include restrictions on the provision of 

5 medicine, medical equipment, or food; and

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

7 humanitarian activities of United States and foreign 

8 nongovernmental organizations in any country 

9 against which the sanction may be imposed; 

10 (6) include findings based on the report pro11 vided by the Secretary of Agriculture pursuant to 

12 section 6(c)(2) regarding—

13 (A) the extent to which the proposed sanc14 tion is likely to restrict exports of any agricul15 tural commodity or is likely to result in retalia16 tion against exports of any agricultural com17 modity from the United States; and 

18 (B) the extent to which the sanction is 

19 proposed to be imposed, or is likely to be im20 posed, on a country or countries that con21 stituted, in the preceding calendar year, the 

22 market for more than 3 percent of all export 

23 sales from the United States of an agricultural 

24 commodity; 
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1 (7) direct the Secretary of Agriculture to ex2 pand agricultural export assistance under United 

3 States market development, food assistance, or ex4 port promotion programs to offset any potential 

5 damage to incomes of producers of any affected ag6 ricultural commodity, to the maximum extent per7 mitted by law and by the obligations of the United 

8 States under the Agreement on Agriculture referred 

9 to in section 101(d)(2) of the Uruguay Round 

10 Agreements Act (19 U.S.C. 3511(d)(2)); 

11 (8) take into account any findings of the Sec12 retary of the Treasury regarding how the sanction 

13 will impact capital markets; and 

14 (9) take into account any findings of the Sec15 retary of Energy regarding how the sanction will im16 pact United States energy markets and the supply 

17 of energy in the United States. 

18 SEC. 6. REQUIREMENTS FOR UNILATERAL ECONOMIC 

19 SANCTIONS LEGISLATION. 

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

21 to the consideration by the committee of primary jurisdic22 tion of any unilateral economic sanction legislation, the 

23 chairman of the committee shall cause to be printed in 

24 the Congressional Record a notice that provides an oppor-
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1 tunity for interested members of the public to submit com2 ments to the committee on the proposed sanction. 

3 (b) COMMITTEE REPORTS.—In the case of any uni4 lateral economic sanction legislation that is reported by 

5 a committee of the House of Representatives or the Sen6 ate, the committee report accompanying the legislation 

7 shall contain a statement of whether the legislation meets 

8 all the guidelines specified in section 5 and, if the legisla9 tion does not, an explanation of why it does not. The re10 port shall also include a specific statement of whether the 

11 legislation includes any restrictions on the provision of 

12 medicine, medical equipment, or food. 

13 (c) REPORTS.—

14 (1) REPORT BY THE PRESIDENT.—Not later 

15 than 30 days after a committee of the House of 

16 Representatives or the Senate reports any unilateral 

17 economic sanction legislation, the President shall 

18 submit to the House of the committee reporting 

19 such legislation a report containing—

20 (A) an assessment of—

21 (i) the likelihood that the proposed 

22 unilateral economic sanction will achieve 

23 its stated objective within a reasonable pe24 riod of time; and 
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1 (ii) the impact of the proposed unilat2 eral economic sanction on—

3 (I) humanitarian conditions, in4 cluding the impact on conditions in 

5 any specific countries on which the 

6 sanction is proposed to be or may be 

7 imposed;

8 (II) humanitarian activities of 

9 United States and foreign nongovern10 mental organizations; 

11 (III) relations with United States 

12 allies; 

13 (IV) other United States national 

14 security and foreign policy interests; 

15 and 

16 (V) countries and entities other 

17 than those on which the sanction is 

18 proposed to be or may be imposed; 

19 and 

20 (B) a description and assessment of—

21 (i) diplomatic and other steps the 

22 United States has taken to accomplish the 

23 intended objectives of the unilateral sanc24 tion legislation; 
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1 (ii) the likelihood of multilateral adop2 tion of comparable measures; 

3 (iii) comparable measures undertaken 

4 by other countries;

5 (iv) alternative measures to promote 

6 the same objectives, and an assessment of 

7 their potential effectiveness; 

8 (v) any obligations of the United 

9 States under international treaties or trade 

10 agreements with which the proposed sanc11 tion may conflict; 

12 (vi) the likelihood that the proposed 

13 sanction will lead to retaliation against 

14 United States interests, including agricul15 tural interests; and 

16 (vii) whether the achievement of the 

17 objectives of the proposed sanction out18 weighs any likely costs to United States 

19 foreign policy, national security, economic, 

20 and humanitarian interests, including any 

21 potential harm to United States business, 

22 agriculture, and consumers, and any poten23 tial harm to the international reputation of 

24 the United States as a reliable supplier of 
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1 products, technology, agricultural commod2 ities, and services. 

3 (2) REPORT BY THE SECRETARY OF AGRI4 CULTURE.—Not later than 30 days after a com5 mittee of the House of Representatives or the Senate 

6 reports any unilateral economic sanction legislation 

7 affecting the export of agricultural commodities from 

8 the United States, the Secretary of Agriculture shall

9 submit to the House of the committee reporting 

10 such legislation a report containing an assessment 

11 of—

12 (A) the extent to which any country or 

13 countries proposed to be sanctioned or likely to 

14 be sanctioned are markets that accounted for, 

15 in the preceding calendar year, more than 3 

16 percent of all export sales from the United 

17 States of any agricultural commodity; 

18 (B) the likelihood that exports of agricul19 tural commodities from the United States will 

20 be affected by the proposed sanction or by re21 taliation by any country proposed to be sanc22 tioned or likely to be sanctioned, and specific 

23 commodities which are most likely to be af24 fected; 
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1 (C) the likely effect on incomes of pro2 ducers of the specific commodities identified by 

3 the Secretary; 

4 (D) the extent to which the proposed sanc5 tion would permit foreign suppliers to replace 

6 United States suppliers; and 

7 (E) the likely effect of the proposed sanc8 tion on the reputation of United States farmers 

9 as reliable suppliers of agricultural commodities 

10 in general, and of the specific commodities iden11 tified by the Secretary. 

12 (3) REPORT BY THE CONGRESSIONAL BUDGET

13 OFFICE.—Any bill or joint resolution that imposes a 

14 unilateral economic sanction shall be treated as in15 cluding a Federal private sector mandate for pur16 poses of part B of title IV of the Congressional 

17 Budget and Impoundment Control Act of 1974 (2 

18 U.S.C. 658 et seq.) and the Congressional Budget 

19 Office shall report accordingly. The report shall in20 clude an assessment of—

21 (A) the likely short-term and long-term 

22 costs of the proposed sanction to the United 

23 States economy, including the potential impact 

24 on United States trade performance, employ25 ment, and growth; 
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1 (B) the impact the proposed sanction will 

2 have on the international reputation of the 

3 United States as a reliable supplier of products, 

4 agricultural commodities, technology, and serv5 ices; and 

6 (C) the impact the proposed sanction will 

7 have on the economic well-being and inter8 national competitive position of United States 

9 industries, firms, workers, farmers, and commu10 nities. 

11 (d) RULES OF THE HOUSE OF REPRESENTATIVES

12 AND SENATE.—This section is enacted by Congress—

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

14 the House of Representatives and the Senate, re15 spectively, and as such these rules are deemed a part 

16 of the rules of each House, respectively, and they su17 persede other rules only to the extent that they are 

18 inconsistent therewith; and 

19 (2) with full recognition of the constitutional 

20 right of either House to change the rules (so far as 

21 relating to the procedure of that House) at any time, 

22 in the same manner and to the same extent as in 

23 the case of any other rule of that House. 

24 SEC. 7. REQUIREMENTS FOR EXECUTIVE ACTION. 

25 (a) NOTICE.—
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1 (1) IN GENERAL.—

2 (A) NOTICE OF INTENT TO IMPOSE SANC3 TION.—Notwithstanding any other provisions of 

4 law, the President shall publish notice in the 

5 Federal Register, at least 45 days in advance of 

6 the imposition of any new unilateral economic 

7 sanction under any provision of law with re8 spect to a foreign country or foreign entity, of 

9 the President’s intention to implement such 

10 sanction. The Federal Register notice shall pro11 vide the opportunity for interested persons to 

12 submit comments regarding the proposed new 

13 unilateral economic sanction. The purpose of 

14 such notice and opportunity for comment shall 

15 be to allow the formulation of an effective sanc16 tion that advances United States national secu17 rity and economic interests, and to provide an 

18 opportunity for negotiations to achieve the ob19 jectives specified in the law authorizing imposi20 tion of a unilateral economic sanction. 

21 (B) WAIVER OF ADVANCE NOTICE RE22 QUIREMENT.—The President may waive the 

23 provisions of subparagraph (A) if the President 

24 determines that the national interest would be 

25 jeopardized by the requirements of this section. 
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1 (C) AUTHORITY TO NEGOTIATE.—Notwith2 standing any other provision of law, the Presi3 dent is authorized to negotiate with the foreign 

4 government against which a unilateral economic 

5 sanction is proposed to resolve the underlying 

6 reasons for the sanction during the 45-day pe7 riod following the publication of notice in the 

8 Federal Register. 

9 (2) NEW UNILATERAL ECONOMIC SANCTION.—

10 For purposes of this section, the term ‘‘new unilat11 eral economic sanction’’ means a unilateral economic 

12 sanction imposed pursuant to a law enacted after 

13 the date of enactment of this Act or a sanction im14 posed after such date of enactment pursuant to the 

15 International Emergency Economic Powers Act (50 

16 U.S.C. 1701 et seq.). 

17 (b) CONSULTATION.—

18 (1) IN GENERAL.—The President shall consult 

19 with the appropriate congressional committees re20 garding a proposed new unilateral economic sanc21 tion, including consultations regarding efforts to 

22 achieve or increase multilateral cooperation on the 

23 issues or problems prompting the proposed sanction. 

24 (2) CLASSIFIED CONSULTATIONS.—The con25 sultations described in paragraph (1) may be con-
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1 ducted on a classified basis if disclosure would 

2 threaten the national security of the United States. 

3 (c) REQUIREMENTS FOR EXECUTIVE BRANCH SANC4 TIONS.—Any new unilateral economic sanction imposed by 

5 the President—

6 (1) shall—

7 (A) provide contract sanctity, except that 

8 contract sanctity shall not be required in any 

9 case—

10 (i) in which execution of the contract 

11 is contrary to law; 

12 (ii) in which the contract involves as13 sets that will be frozen as a consequence of 

14 the proposed sanction; or 

15 (iii) in which the contract provides for 

16 the supply of goods or services directly to 

17 a specific person, government agency, or 

18 military unit that is expressly named as a 

19 target of the proposed sanction; 

20 (B) terminate not later than 2 years after 

21 the sanction is imposed, unless specifically ex22 tended by the President in accordance with this 

23 section; 

24 (C)(i) be targeted as narrowly as possible 

25 on foreign governments, entities, and officials 
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1 that are responsible for the conduct being tar2 geted; and 

3 (ii) seek to minimize any adverse impact 

4 on the humanitarian activities of United States 

5 and foreign nongovernmental organizations in a 

6 country against which the sanction may be im7 posed; and 

8 (D) not include any restriction on the ex9 port, financing, support, or provision of medi10 cine, medical equipment, medical supplies, food, 

11 or other agricultural commodity (including fer12 tilizer), other than restrictions imposed in re13 sponse to national security threats, where mul14 tilateral sanctions are in place, or restrictions 

15 involving a country where the United States is 

16 engaged in armed conflict; and 

17 (2) should direct the Secretary of Agriculture to 

18 expand agricultural export assistance under United 

19 States market development, food assistance, and ex20 port promotion programs to offset any potential 

21 damage to incomes of producers of any affected ag22 ricultural commodity, to the maximum extent per23 mitted by law and by the obligations of the United 

24 States under the Agreement on Agriculture referred 
28

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1 to in section 101(d)(2) of the Uruguay Round 

2 Agreements Act (19 U.S.C. 3511(d)(2)). 

3 (d) REPORT BY THE PRESIDENT.—

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

5 unilateral economic sanction, the President shall 

6 provide a report to the appropriate congressional 

7 committees on the proposed sanction. The report 

8 shall include the report of the International Trade 

9 Commission under subsection (f) (if timely sub10 mitted prior to the filing of the report). The report 

11 may be provided on a classified basis if disclosure 

12 would threaten the national security of the United 

13 States. The President’s report shall contain the fol14 lowing: 

15 (A) An explanation of the foreign policy or 

16 national security objective or objectives intended 

17 to be achieved through the proposed sanction. 

18 (B) An assessment of—

19 (i) the likelihood that the proposed 

20 sanction will achieve its stated objectives 

21 within the stated period of time; and 

22 (ii) the impact of the proposed sanc23 tion on—

24 (I) humanitarian conditions, in25 cluding the impact on conditions in 
29

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1 any specific countries on which the 

2 sanction is proposed to be imposed; 

3 (II) humanitarian activities of 

4 United States and foreign nongovern5 mental organizations; 

6 (III) relations with United States 

7 allies; and 

8 (IV) other United States national 

9 security and foreign policy interests, 

10 including countries and entities other 

11 than those on which the sanction is 

12 proposed to be imposed. 

13 (C) A description and assessment of—

14 (i) diplomatic and other steps the 

15 United States has taken to accomplish the 

16 intended objectives of the proposed sanc17 tion; 

18 (ii) the likelihood of multilateral adop19 tion of comparable measures;

20 (iii) comparable measures undertaken 

21 by other countries; 

22 (iv) alternative measures to promote 

23 the same objectives, and an assessment of 

24 their potential effectiveness; 
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1 (v) any obligations of the United 

2 States under international treaties or trade 

3 agreements with which the proposed sanc4 tion may conflict; 

5 (vi) the likelihood that the proposed 

6 sanction will lead to retaliation against 

7 United States interests, including agricul8 tural interests; and 

9 (vii) whether the achievement of the 

10 objectives of the proposed sanction out11 weighs any likely costs to United States 

12 foreign policy, national security, economic, 

13 and humanitarian interests, including any 

14 potential harm to United States business, 

15 agriculture, and consumers, and any poten16 tial harm to the international reputation of 

17 the United States as a reliable supplier of 

18 products, technology, agricultural commod19 ities, and services. 

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

21 case of any unilateral economic sanction that is im22 posed after the date of enactment of this Act, other 

23 than a new unilateral economic sanction described in 

24 subsection (a)(2) or a sanction that is a continuation 

25 of a sanction in effect on the date of enactment of 
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1 this Act, the President shall not later than 30 days 

2 after imposing such sanction submit to Congress a 

3 report described in paragraph (1) relating to such 

4 sanction. The report may be provided on a classified 

5 basis if disclosure would threaten the national secu6 rity of the United States.

7 (e) REPORT BY THE SECRETARY OF AGRI8 CULTURE.—Prior to the imposition of a new unilateral 

9 economic sanction by the President, the Secretary of Agri10 culture shall submit to the appropriate congressional com11 mittees a report that shall contain an assessment of—

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

13 proposed to be sanctioned are markets that ac14 counted for, in the preceding calendar year, more 

15 than 3 percent of all export sales from the United 

16 States of any agricultural commodity; 

17 (2) the likelihood that exports of agricultural 

18 commodities from the United States will be affected 

19 by the proposed sanction or by retaliation by any 

20 country proposed to be sanctioned, including specific 

21 commodities which are most likely to be affected; 

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

23 the specific commodities identified by the Secretary; 
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1 (4) the extent to which the proposed sanction 

2 would permit foreign suppliers to replace United 

3 States suppliers; and

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

5 the reputation of United States farmers as reliable 

6 suppliers of agricultural commodities in general, and 

7 of the specific commodities identified by the Sec8 retary. 

9 (f) REPORT BY THE UNITED STATES INTER10 NATIONAL TRADE COMMISSION.—Before imposing a new 

11 unilateral economic sanction, the President shall make a 

12 timely request to the United States International Trade 

13 Commission for a report on the likely short-term and long14 term costs of the proposed sanction to the United States 

15 economy, including the potential impact on United States 

16 trade performance, employment, and growth, the inter17 national reputation of the United States as a reliable sup18 plier of products, agricultural commodities, technology, 

19 and services, and the economic well-being and inter20 national competitive position of United States industries, 

21 firms, workers, farmers, and communities. 

22 (g) WAIVER AUTHORITY.—The President may waive 

23 any of the requirements of this section in the event that 

24 the President determines that such a waiver is in the na25 tional interest of the United States. In the event of such 
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1 a waiver, the requirements waived shall be met during the 

2 60-day period immediately following the imposition of the 

3 new unilateral economic sanction. 

4 (h) SANCTIONS REVIEW COMMITTEE.—

5 (1) ESTABLISHMENT.—There is established 

6 within the executive branch of Government an inter7 agency committee, which shall be known as the 

8 Sanctions Review Committee, which shall have the 

9 responsibility of coordinating United States policy 

10 regarding unilateral economic sanctions and of pro11 viding appropriate recommendations to the President 

12 prior to any decision regarding the implementation 

13 of any unilateral economic sanction. The Committee 

14 shall be composed of the following 11 members, and 

15 any other member the President considers appro16 priate: 

17 (A) The Secretary of State. 

18 (B) The Secretary of the Treasury. 

19 (C) The Secretary of Defense. 

20 (D) The Secretary of Agriculture. 

21 (E) The Secretary of Commerce. 

22 (F) The Secretary of Energy. 

23 (G) The United States Trade Representa24 tive. 
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1 (H) The Director of the Office of Manage2 ment and Budget. 

3 (I) The Chairman of the Council of Eco4 nomic Advisers. 

5 (J) The Assistant to the President for Na6 tional Security Affairs. 

7 (K) The Assistant to the President for 

8 Economic Policy. 

9 (2) CHAIR.—The President shall designate one 

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

11 as Chair of the Sanctions Review Committee. 

12 (i) INAPPLICABILITY OF OTHER PROVISIONS.—This 

13 section applies notwithstanding any other provision of law. 

14 SEC. 8. ANNUAL REPORTS. 

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

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

17 thereafter, unless otherwise required under existing law, 

18 the President shall submit to the appropriate congres19 sional committees a report detailing with respect to each 

20 country or entity against which a unilateral economic 

21 sanction has been imposed—

22 (1) the extent to which the sanction has 

23 achieved foreign policy or national security objectives 

24 of the United States with respect to that country or 

25 entity; 
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1 (2) the extent to which the sanction has harmed 

2 humanitarian interests in that country, the country 

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

4 and 

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

6 security and foreign policy interests of the United 

7 States, including relations with countries friendly to 

8 the United States, and on the United States econ9 omy. 

10 (b) REPORT BY THE UNITED STATES INTER11 NATIONAL TRADE COMMISSION.—Not later than 6 

12 months after the date of enactment of this Act, and annu13 ally thereafter, the United States International Trade 

14 Commission shall report to the appropriate congressional 

15 committees on the costs, individually and in the aggregate, 

16 of all unilateral economic sanctions in effect under United 

17 States law, regulation, or Executive order. The calculation 

18 of such costs shall include an assessment of the impact 

19 of such measures on the international reputation of the 

20 United States as a reliable supplier of products, agricul21 tural commodities, technology, and services. 

22 SEC. 9. PRESIDENTIAL WAIVER AUTHORITY. 

23 (a) WAIVER AUTHORITY.—The President may waive 

24 the application of any sanction or prohibition (or portion 

25 thereof) contained in section 101 or 102 of the Arms Ex-
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1 port Control Act, section 620E(e) of the Foreign Assist2 ance Act of 1961, or section 2(b)(4) of the Export Import 

3 Bank Act of 1945 if the President determines that such 

4 a waiver would advance the purposes of such Acts or the 

5 national security interests of the United States. 

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

7 authority provided in subsection (a), the President shall 

8 consult with the appropriate congressional committees. 

9 Such consultations may be conducted on a classified basis 

10 if disclosure would threaten the national security of the 

11 United States. 

12 (c) REPORTS.—At least once every 6 months after 

13 exercising the waiver authority in subsection (a), the 

14 President shall report to Congress with respect to the ac15 tions taken since the submission of the preceding report, 

16 and the reasons that continuation of any waiver under 

17 subsection (a) remains in the national security interest of 

18 the United States. 

19 SEC. 10. EFFECTIVE DATE. 

20 This Act shall take effect on the date that is 20 days 

21 after the date of enactment of this Act.

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