I 

108TH CONGRESS 

2D SESSION H. R. 4780 

To require the United States Trade Representative to pursue a complaint 

of anti-competitive practices against certain oil exporting countries. 

IN THE HOUSE OF REPRESENTATIVES 

JULY 8, 2004 

Mr. DEFAZIO introduced the following bill; which was referred to the 

Committee on Ways and Means 

A BILL 

To require the United States Trade Representative to pursue 

a complaint of anti-competitive practices against certain 

oil exporting countries. 

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

3 SECTION 1. FINDINGS. 

4 Congress makes the following findings: 

5 (1) Gasoline prices have risen 80 percent since 

6 January, 2002, with oil recently trading at more 

7 than $40 per barrel for the first time ever. 

8 (2) Rising gasoline prices have placed an inordi9 nate burden on American families. 
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1 (3) High gasoline prices have hindered and will 

2 continue to hinder economic recovery. 

3 (4) The Organization of Petroleum Exporting 

4 Countries (OPEC) has formed a cartel and engaged 

5 in anti-competitive practices to manipulate the price 

6 of oil, keeping it artificially high. 

7 (5) Six member nations of OPEC—Indonesia, 

8 Kuwait, Nigeria, Qatar, the United Arab Emirates 

9 and Venezuela—are also members of the World 

10 Trade Organization. 

11 (6) The agreement among OPEC member na12 tions to limit oil exports is an illegal prohibition or 

13 restriction on the exportation or sale for export of a 

14 product under Article XI of the GATT 1994. 

15 (7) The export quotas and resulting high prices 

16 harm American families, undermine the American 

17 economy, impede American and foreign commerce, 

18 and are contrary to the national interests of the 

19 United States. 

20 SEC. 2. ACTIONS TO CURB CERTAIN CARTEL ANTI-COM21 PETITIVE PRACTICES. 

22 (a) DEFINITIONS.— 

23 (1) GATT 1994.—The term ‘‘GATT 1994’’ has 

24 the meaning given such term in section 2(1)(B) of 
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1 the Uruguay Round Agreements Act (19 U.S.C. 

2 3501(1)(B). 

3 (2) UNDERSTANDING ON RULES AND PROCE4 DURES GOVERNING THE SETTLEMENT OF DIS5 PUTES.—The term ‘‘Understanding on Rules and 

6 Procedures Governing the Settlement of Disputes’’ 

7 means the agreement described in section 

8 101(d)(16) of the Uruguay Round Agreements Act 

9 (19 U.S.C. 3511(d)(16)). 

10 (3) WORLD TRADE ORGANIZATION.— 

11 (A) IN GENERAL.—The term ‘‘World 

12 Trade Organization’’ means the organization 

13 established pursuant to the WTO Agreement. 

14 (B) WTO AGREEMENT.—The term ‘‘WTO 

15 Agreement’’ means the Agreement Establishing 

16 The World Trade Organization entered into on 

17 April 15, 1994. 

18 (b) ACTION BY PRESIDENT.— 

19 (1) IN GENERAL.—Notwithstanding any other 

20 provision of law, the President shall, not later than 

21 15 days after the date of enactment of this Act, ini22 tiate consultations with the countries described in 

23 paragraph (2) to seek the elimination by those coun24 tries of any action that— 
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1 (A) limits the production or distribution of 

2 oil, natural gas, or any other petroleum prod3 uct, 

4 (B) sets or maintains the price of oil, nat5 ural gas, or any petroleum product, or 

6 (C) otherwise is an action in restraint of 

7 trade with respect to oil, natural gas, or any pe8 troleum product, 

9 when such action constitutes an act, policy, or prac10 tice that is unjustifiable and burdens and restricts 

11 United States commerce. 

12 (2) COUNTRIES DESCRIBED.—The countries de13 scribed in this paragraph are the following: 

14 (A) Indonesia. 

15 (B) Kuwait. 

16 (C) Nigeria. 

17 (D) Qatar. 

18 (E) The United Arab Emirates. 

19 (F) Venezuela. 

20 (c) INITIATION OF WTO DISPUTE PROCEEDINGS.— 

21 If the consultations described in subsection (b) are not 

22 successful with respect to any country described in sub23 section (b)(2), the United States Trade Representative 

24 shall, not later than 60 days after the date of enactment 

25 of this Act, institute proceedings pursuant to the Under-
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1 standing on Rules and Procedures Governing the Settle2 ment of Disputes with respect to that country and shall 

3 take appropriate action with respect to that country under 

4 the trade remedy laws of the United States. 

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