I 

111TH CONGRESS 

1ST SESSION H. R. 3012 

To require a review of existing trade agreements and renegotiation of existing 

trade agreements based on the review, to set terms for future trade 

agreements, to express the sense of the Congress that the role of Congress in trade policymaking should be strengthened, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

JUNE 24, 2009 

Mr. MICHAUD (for himself, Mr. ABERCROMBIE, Mr. ALTMIRE, Mr. ARCURI, 

Mr. BACA, Ms. BALDWIN, Mr. BOCCIERI, Mr. BOSWELL, Mr. BRADY of 

Pennsylvania, Mr. BRALEY of Iowa, Mr. CAPUANO, Mr. CARNAHAN, Mr. 

CARNEY, Mr. CARSON of Indiana, Mr. CHANDLER, Mr. CHILDERS, Mr. 

CLEAVER, Mr. COHEN, Mr. CONYERS, Mr. COSTELLO, Mr. CUMMINGS, 

Mrs. DAHLKEMPER, Mr. DEFAZIO, Mr. DELAHUNT, Ms. DELAURO, Mr. 

DINGELL, Mr. DOYLE, Ms. EDWARDS of Maryland, Mr. ELLISON, Mr. 

FILNER, Ms. FUDGE, Mr. GORDON of Tennessee, Mr. GRAYSON, Mr. AL

GREEN of Texas, Mr. GENE GREEN of Texas, Mr. GRIJALVA, Mr. 

GUTIERREZ, Mr. HALL of New York, Mr. HARE, Mr. HASTINGS of Florida, Mr. HINCHEY, Ms. HIRONO, Mr. HOLDEN, Mr. HOLT, Mr. JACKSON

of Illinois, Ms. JACKSON-LEE of Texas, Mr. JOHNSON of Georgia, Mr. 

JONES, Mr. KAGEN, Mr. KANJORSKI, Ms. KAPTUR, Mr. KILDEE, Ms. 

KILPATRICK of Michigan, Ms. KILROY, Mr. KISSELL, Mr. KUCINICH, Mr. 

LANGEVIN, Ms. LEE of California, Mr. LIPINSKI, Mr. LOEBSACK, Mr. 

LYNCH, Mr. MASSA, Ms. MCCOLLUM, Mr. MCGOVERN, Mr. MCINTYRE, 

Mr. MOLLOHAN, Ms. MOORE of Wisconsin, Mr. PATRICK J. MURPHY of 

Pennsylvania, Mr. MURTHA, Mr. NADLER of New York, Mrs. 

NAPOLITANO, Ms. NORTON, Mr. OBERSTAR, Mr. PALLONE, Mr. PAYNE, 

Mr. PERRIELLO, Mr. PETERS, Mr. PETERSON, Ms. PINGREE of Maine, 

Mr. RAHALL, Mr. ROSS, Mr. ROTHMAN of New Jersey, Ms. ROYBAL-ALLARD, Mr. RYAN of Ohio, Mr. SARBANES, Ms. SCHAKOWSKY, Mr. 

SCHAUER, Mr. SCOTT of Virginia, Ms. SHEA-PORTER, Mr. SHERMAN, 

Mr. SHULER, Ms. SLAUGHTER, Mr. SMITH of New Jersey, Mr. STUPAK, 

Ms. SUTTON, Mr. TIERNEY, Mr. TONKO, Mr. VISCLOSKY, Mr. WALZ, Ms. 

WASSERMAN SCHULTZ, Ms. WATERS, Mr. WELCH, Mr. WILSON of Ohio, 

Ms. WOOLSEY, Mr. WU, and Mr. SPRATT) introduced the following bill; 

which was referred to the Committee on Ways and Means, and in addition to the Committee on Rules, for a period to be subsequently deterVerDate Nov 24 2008 23:58 Jun 25, 2009 Jkt 079200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6652 E:\BILLS\H3012.IH H3012

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mined by the Speaker, in each case for consideration of such provisions 

as fall within the jurisdiction of the committee concerned 

A BILL 

To require a review of existing trade agreements and renegotiation of existing trade agreements based on the review, 

to set terms for future trade agreements, to express 

the sense of the Congress that the role of Congress 

in trade policymaking should be strengthened, and for 

other purposes. 

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 ‘‘Trade Reform, Ac5 countability, Development, and Employment Act of 2009’’ 

6 or the ‘‘TRADE Act of 2009’’. 

7 SEC. 2. DEFINITIONS. 

8 In this Act: 

9 (1) CORE LABOR STANDARDS.—The term ‘‘core 

10 labor standards’’ means the core labor rights as 

11 stated in the Conventions of the International 

12 Labour Organization relating to— 

13 (A) freedom of association and the effec14 tive recognition of the right to collective bar15 gaining; 


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1 (B) elimination of all forms of forced or 

2 compulsory labor; 

3 (C) effective abolition of child labor; and 

4 (D) elimination of discrimination with re5 spect to employment and occupation. 

6 (2) FUNDAMENTAL HUMAN RIGHTS.—The term 

7 ‘‘fundamental human rights’’ means the rights enu8 merated in the United Nations Universal Declara9 tion of Human Rights. 

10 (3) MAJOR U.S. TRADE PARTNERS.—The term 

11 ‘‘major U.S. trade partners’’ means Belgium, Brazil, 

12 the People’s Republic of China, France, Germany, 

13 Hong Kong, India, Ireland, Italy, Japan, the Repub14 lic of South Korea, Malaysia, the Netherlands, Tai15 wan, and the United Kingdom. 

16 (4) MULTILATERAL ENVIRONMENTAL AGREE17 MENT.—The term ‘‘multilateral environmental 

18 agreement’’ means any international agreement or 

19 provision thereof to which the United States is a 

20 party and which is intended to protect, or has the 

21 effect of protecting, the environment or human 

22 health. 

23 (5) STATE.—The term ‘‘State’’ means each of 

24 the several States, the District of Columbia, and any 


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1 commonwealth, territory, or possession of the United 

2 States. 

3 (6) TRADE AGREEMENTS.— 

4 (A) IN GENERAL.—Except as provided in 

5 section 4, the term ‘‘trade agreement’’ means— 

6 (i) the North American Free Trade 

7 Agreement; 

8 (ii) the Dominican Republic-Central 

9 America-United States Free Trade Agree10 ment; and 

11 (iii) the Agreement Between the 

12 United States of America and the 

13 Hashemite Kingdom of Jordan on the Es14 tablishment of a Free Trade Area. 

15 (B) URUGUAY ROUND AGREEMENTS.—Ex16 cept as provided in section 4, the term ‘‘trade 

17 agreement’’ means— 

18 (i) the General Agreement on Tariffs 

19 and Trade (GATT 1994) annexed to the 

20 WTO Agreement; 

21 (ii) the WTO Agreement described in 

22 section 2(9) of the Uruguay Round Agree23 ments Act (19 U.S.C. 3501(9)); 


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1 (iii) any other agreement described in 

2 section 101(d) of the Uruguay Round 

3 Agreements Act (19 U.S.C. 3511(d)); and 

4 (iv) any multilateral agreement en5 tered into by the United States under the 

6 auspices of the World Trade Organization, 

7 including any agreement relating to infor8 mation technology, telecommunications, or 

9 financial services. 

10 SEC. 3. REVIEW AND REPORT ON EXISTING TRADE AGREE11 MENTS. 

12 (a) REVIEW AND REPORT.— 

13 (1) IN GENERAL.—Not later than 270 days 

14 after the date of the enactment of this Act, and 

15 every 2 years thereafter, the Comptroller General of 

16 the United States shall— 

17 (A) conduct a review of all trade agree18 ments in force at the time of the review for the 

19 purpose of evaluating the economic, environ20 mental, national security, health, safety, and 

21 other effects of the trade agreements; and 

22 (B) submit to the Congressional Trade 

23 Agreement Review Committee established under 

24 section 6 a report that includes the information 


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1 described under subsections (b) and (c) and the 

2 recommendations required under subsection (d). 

3 (2) COOPERATION OF AGENCIES.—The Sec4 retary of State, the Secretary of Agriculture, the 

5 Secretary of Commerce, the Secretary of Labor, the 

6 Secretary of the Treasury, and the heads of other 

7 Federal departments and agencies shall cooperate 

8 with the Comptroller General for purposes of facili9 tating preparation of the report. 

10 (3) INFLATION-CONTROLLED DOLLARS.—Data 

11 expressed in terms of United States dollars should 

12 be in inflation adjusted terms unless otherwise indi13 cated. 

14 (b) INFORMATION WITH RESPECT TO TRADE

15 AGREEMENTS.—The report required by subsection (a) 

16 shall, with respect to each trade agreement, to the extent 

17 practicable, include the following information covering the 

18 period between the date on which the trade agreement en19 tered into force with respect to the United States and the 

20 date on which the Comptroller General completes the re21 view: 

22 (1) An analysis of indicators of the economic 

23 impact of each trade agreement, including the fol24 lowing: 


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1 (A) The employment effects of the trade 

2 agreement on job gains and losses in the United 

3 States delineated by industry, year, and State, 

4 taking note of specific firm, industry, or re5 gional cases of substantial trade agreement-re6 lated employment losses or gains, including a 

7 list of the top ten industries that experienced 

8 employment gains and losses in the United 

9 States. In addition to utilizing existing govern10 ment data, the Comptroller General shall de11 velop and utilize a labor requirements model de12 rived from detailed input-output tables to esti13 mate the number of jobs supported or displaced 

14 by shifts in the level and rate of change of 

15 United States net exports and investment flows. 

16 (B) The effects of the trade agreement on 

17 changes in relative and absolute wage levels, in18 come distribution by decile, and hours worked 

19 by sector and State, on a year-to-year basis, in 

20 the United States. In addition to utilizing exist21 ing government data, the Comptroller General 

22 shall develop and utilize factor content analyses, 

23 product price regressions, computable general 

24 equilibrium models, and other applicable meth25 ods to isolate the impact of the trade agreement 


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1 (and its associated investment flows) on 

2 changes in relative and absolute wages and in3 come distribution by education, skill level, and 

4 trade-sensitivity of various sectors, controlling 

5 for appropriate indicators such as region, race, 

6 and gender. 

7 (C) The dollar value of domestic exports of 

8 the United States and imports for consumption 

9 into the United States delineated, to the extent 

10 such information is available, by— 

11 (i) Standard International Trade 

12 Classification (SITC)-5, 

13 (ii) Standard Industrial Classification 

14 (SIC)-4, 

15 (iii) North American Industry Classi16 fication (NAIC)-6, 

17 (iv) the 10-digit classification number 

18 under the Harmonized Tariff Schedule of 

19 the United States, 

20 (v) year, and 

21 (vi) trade-partner country, 

22 including listing those goods for which there 

23 has been a change in 10 percent or more in bi24 lateral trade flows. 


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1 (D) The share of global production, pro2 ductive capacity, investment, exports and em3 ployment, and other indicators of the competi4 tive position (such as productivity gains and 

5 patents registered) of industries in the United 

6 States significantly affected by the trade agree7 ment, taking note of major production and em8 ployment offshoring trends and changes in 

9 sourcing patterns before and after entry into 

10 force of the trade agreement with respect to the 

11 United States. 

12 (2) An analysis of the effect on agriculture and 

13 food-related outcomes, including the following: 

14 (A)(i) The trend, on a year-by-year basis, 

15 of prices and production volumes in the United 

16 States, and exports from and imports into the 

17 United States, of agricultural commodities, food 

18 products, and ingredients thereof, that are im19 ported in significant volume into the United 

20 States from a country that is a party to the 

21 trade agreement. 

22 (ii) For purposes of this subparagraph— 

23 (I) the term ‘‘significant volume’’ 

24 means, with respect to agricultural com25 modities, food products, or ingredients, 10 


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1 percent or more of domestic consumption 

2 of such agricultural commodities, food 

3 products, or ingredients; and 

4 (II) imports of such agricultural com5 modities, food products, and ingredients 

6 shall be measured according to the 4-digit 

7 classification of the commodities, products, 

8 and ingredients under the Harmonized 

9 Tariff Schedule of the United States. 

10 (B) An analysis of the effects, if any, on 

11 the cost of agricultural programs in the United 

12 States. 

13 (C) The number of farms operating in the 

14 United States, detailed by farm typology and 

15 sales level, and the number of acres under pro16 duction by crop, for agricultural commodities 

17 that are exported from the United States to a 

18 country that is a party to the trade agreement, 

19 on a year-by-year basis. 

20 (D) An analysis of the effects, if any, on 

21 market concentration, prices, and fair competi22 tion in the markets for agricultural commodities 

23 and food products that are subject to signifi24 cant volumes of trade between the United 


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1 States and each other country that is a party 

2 to the trade agreement. 

3 (3)(A) An analysis of the progress in imple4 menting commitments under the trade agreement, 

5 and the record of compliance with the terms of the 

6 trade agreement, by— 

7 (i) each country that is a party to the 

8 trade agreement, in the case of a trade agree9 ment describe in section 2(6)(A); and 

10 (ii) by each of the major U.S. trade part11 ners, in the case of a trade agreement described 

12 in section 2(6)(B). 

13 (B) A description of any outstanding disputes 

14 between the United States and any other country 

15 that is a party to the trade agreement, including a 

16 description of laws, regulations, or policies of the 

17 United States or any State that such other country 

18 has challenged, or threatened to challenge, under the 

19 trade agreement. 

20 (4) An analysis of the ability of the United 

21 States to ensure that each other country that is a 

22 party to the trade agreement complies with United 

23 States laws and regulations, including— 

24 (A) complying with the customs laws of the 

25 United States; 


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1 (B) making timely payment of duties owed 

2 on goods imported into the United States, in3 cluding, in such analysis, the amount of duties 

4 paid by such other country; 

5 (C) meeting safety and inspection require6 ments with respect to food and other products 

7 imported into the United States from such 

8 other country; 

9 (D) complying with prohibitions on the 

10 transshipment of goods that are ultimately im11 ported into the United States; and 

12 (E) enforcing the trade agreement, includ13 ing preventing dumping, subsidies, and cir14 cumvention. 

15 (5) An analysis of any privatization of public 

16 sector services in the United States or in any other 

17 country that is a party to the trade agreement, if 

18 the service involved is covered by the investment, fi19 nancial services, or services provisions of the trade 

20 agreement, including any effect such privatization 

21 has on the access of consumers to essential services, 

22 such as health care, electricity, gas, water, telephone 

23 service, or other utilities. 

24 (6) An assessment of the impact of the intellec25 tual property provisions of the trade agreement on 


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1 the retail price of pharmaceuticals in any country 

2 that is a party to the trade agreement and the ef3 fect, if any, that changes in the price of pharma4 ceuticals have had on access by consumers to medi5 cines. 

6 (7) An analysis of the impact of government 

7 procurement rules in the trade agreement on the 

8 procurement of goods or services by United States 

9 Federal or State government agencies, including an10 nual information on the value of goods and services 

11 procured, delineated by Federal or State government 

12 and agency, by good or service procured, and by the 

13 country from which the good or service originated. 

14 (8) An assessment of the impact of significant 

15 currency movements, currency misalignment, or cur16 rency manipulation on the bilateral trade balance be17 tween the United States and each other country that 

18 is a party to the trade agreement and each of the 

19 major U.S. trade partners. 

20 (c) INFORMATION ON COUNTRIES THAT ARE PAR21 TIES TO TRADE AGREEMENTS.—With respect to each 

22 country with which the United States has a trade agree23 ment in effect, the report required under subsection (a) 

24 shall include information regarding whether that coun25 try— 


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1 (1) has a democratic form of government; 

2 (2) respects core labor rights, as defined by the 

3 Committee of Experts on the Application of Conven4 tions and Recommendations and the Conference 

5 Committee on the Application of Standards of the 

6 International Labour Organization; 

7 (3) respects fundamental human rights, as de8 termined by the Secretary of State in the annual 

9 country reports on human rights of the Department 

10 of State; 

11 (4) is designated as a country of particular con12 cern with respect to religious freedom under section 

13 402(b)(1) of the International Religious Freedom 

14 Act of 1998 (22 U.S.C. 6442(b)(1)); 

15 (5) is on a list described in subparagraph (B) 

16 or (C) of section 110(b)(1) of the Trafficking Vic17 tims Protection Act of 2000 (22 U.S.C. 7107(b)(1)) 

18 (commonly known as tier 2 or tier 3 of the Traf19 ficking in Persons List of the Department of State); 

20 (6) has taken effective measures to combat and 

21 prevent public and private corruption, including 

22 measures with respect to tax evasion and money 

23 laundering, and has ratified the Convention on Com24 bating Bribery of Foreign Public Officials in InterVerDate Nov 24 2008 23:58 Jun 25, 2009 Jkt 079200 PO 00000 Frm 00014 Fmt 6652 Sfmt 6201 E:\BILLS\H3012.IH H3012

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1 national Business Transactions of the Organization 

2 for Economic Cooperation and Development; 

3 (7) complies with the multilateral environmental 

4 agreements to which the country is a party; 

5 (8) has in force adequate labor and environ6 mental laws and regulations, has devoted sufficient 

7 resources to implementing those laws and regula8 tions, and has an adequate record of enforcement of 

9 those laws and regulations; 

10 (9) adequately protects intellectual property 

11 rights; 

12 (10) provides for governmental transparency, 

13 due process of law, and respect for international 

14 agreements; and 

15 (11) poses potential concerns to the national se16 curity of the United States, including an assessment 

17 of the transfer of technology, production, and serv18 ices from one country to another. 

19 (d) RECOMMENDATIONS.—The report required under 

20 subsection (a) shall include recommendations of the 

21 Comptroller General for addressing issues with respect to 

22 a trade agreement that are identified under subsections 

23 (b) and (c). The recommendations shall include sugges24 tions for renegotiating the trade agreement based on the 


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1 requirements described in section 4(b) and for negotia2 tions with respect to new trade agreements. 

3 (e) CITATIONS.—The Comptroller General shall in4 clude in the report required under subsection (a) citations 

5 to the sources of data used in preparing the report and 

6 a description of the methodologies employed in preparing 

7 the report. 

8 (f) TREND ANALYSIS.—The report required under 

9 subsection (a) shall include a trend analysis of relative and 

10 absolute wage levels on a year-to-year basis in— 

11 (1) each country with which the United States 

12 has a trade agreement described in section 2(6)(A); 

13 (2) each major U.S. trade partner; 

14 (3) each country with which the United States 

15 has considered establishing a free trade agreement, 

16 including South Africa, Vietnam, Malaysia, and 

17 Thailand; and 

18 (4) Cambodia. 

19 (g) PUBLIC COMMENT.—In preparing the report re20 quired under subsection (a), the Comptroller General 

21 shall— 

22 (1) hold hearings that are open to the public; 

23 and 

24 (2) provide an opportunity for members of the 

25 public to testify and submit written comments. 


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1 (h) PUBLIC AVAILABILITY.—The information in each 

2 report required under subsection (a) shall be made avail3 able to the public not later than 14 days after the Comp4 troller General completes the report. 

5 SEC. 4. INCLUSION OF CERTAIN PROVISIONS IN TRADE 

6 AGREEMENTS. 

7 (a) IN GENERAL.— 

8 (1) REQUIREMENTS FOR EXPEDITED CONSID9 ERATION OF IMPLEMENTING LEGISLATION.—Not10 withstanding section 151 of the Trade Act of 1974 

11 (19 U.S.C. 2191) or any other provision of law, any 

12 bill implementing a trade agreement between the 

13 United States and another country that is intro14 duced in the Congress after the date of the enact15 ment of this Act shall not be subject to expedited 

16 consideration or special procedures regarding 

17 amendment or debate unless the trade agreement 

18 meets the requirements of subsection (b). 

19 (2) TRADE AGREEMENT DEFINED.—For pur20 poses of this section, the term ‘‘trade agreement’’ 

21 means any trade agreement entered into between the 

22 United States and one or more countries. 

23 (b) REQUIREMENTS.—The requirements referred to 

24 in subsection (a) regarding a trade agreement between the 

25 United States and another country are the following: 


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1 (1) LABOR STANDARDS.—The labor provisions 

2 shall— 

3 (A) be included in the core text of the 

4 trade agreement; 

5 (B) require each country that is party to 

6 the trade agreement— 

7 (i) to adopt and maintain as part of 

8 its domestic law and regulations (including 

9 in any designated zone in that country) the 

10 core labor standards; and 

11 (ii) to effectively enforce laws related 

12 to core labor standards and acceptable con13 ditions of work with respect to minimum 

14 wages, hours of work, and occupational 

15 safety and health; 

16 (C) prohibit a country that is a party to 

17 the trade agreement from waiving or otherwise 

18 derogating from its laws and regulations relat19 ing to the core labor standards and acceptable 

20 conditions of work with respect to minimum 

21 wages, hours of work, and occupational safety 

22 and health; 

23 (D) provide that failures to meet the labor 

24 standards required by the trade agreement shall 

25 be subject to effective dispute resolution and 


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1 enforcement mechanisms and penalties that are 

2 included in the core text of the trade agreement 

3 and that are at least as effective as the mecha4 nisms and penalties that apply to the commer5 cial provisions of the trade agreement; 

6 (E) strengthen the capacity of each coun7 try that is a party to the trade agreement to 

8 promote and enforce core labor standards; 

9 (F) provide for the establishment of a com10 mission comprised of individuals with inter11 national and comparative labor rights expertise, 

12 including representatives of independent labor 

13 unions of countries that are parties to the trade 

14 agreement, representatives of exporting busi15 nesses of countries that are parties to the trade 

16 agreement, and independent academic research17 ers, to receive, investigate, review, and partici18 pate in the adjudication of any complaint filed 

19 under the labor provisions of the trade agree20 ment, and vest the commission with the author21 ity to establish objective indicators to determine 

22 compliance with the obligations set forth in sub23 paragraphs (B), (C), and (D); and 

24 (G) require each country that is a party to 

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1 vestigations by the commission required under 

2 subparagraph (F). 

3 (2) HUMAN RIGHTS STANDARDS.—The human 

4 rights provisions shall— 

5 (A) be included in the core text of the 

6 trade agreement; 

7 (B) require each country that is a party to 

8 the trade agreement to recognize the United 

9 Nations Universal Declaration of Human 

10 Rights as a common standard of achievement 

11 for all peoples and all nations; 

12 (C) prohibit each country that is a party to 

13 the trade agreement from waiving or otherwise 

14 derogating from its laws and regulations relat15 ing to fundamental human rights; 

16 (D) provide that failures to meet the fun17 damental human rights required by the trade 

18 agreement shall be subject to effective dispute 

19 resolution and enforcement mechanisms and 

20 penalties that are included in the core text of 

21 the trade agreement and that are at least as ef22 fective as the mechanisms and penalties that 

23 apply to the commercial provisions of the trade 

24 agreement; 


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1 (E) strengthen the capacity of each coun2 try that is a party to the trade agreement to 

3 promote and enforce fundamental human 

4 rights; 

5 (F) provide for the establishment of a com6 mission composed of representatives specializing 

7 in international and comparative human rights, 

8 including representatives of independent human 

9 rights organizations of countries who are par10 ties to the trade agreement and academic re11 searchers, to receive, investigate, review, and 

12 participate in the adjudication of any complaint 

13 filed under the human rights provisions of the 

14 trade agreement, and vest the commission with 

15 the authority to establish objective indicators to 

16 determine compliance with the obligations set 

17 forth in subparagraphs (B), (C), and (D); and 

18 (G) require any other country that is a 

19 party to the trade agreement to cooperate fully 

20 with investigations by the commission required 

21 under subparagraph (F). 

22 (3) ENVIRONMENTAL AND PUBLIC SAFETY

23 STANDARDS.—The environmental provisions shall— 

24 (A) be included in the core text of the 

25 trade agreement; 


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1 (B) prohibit each country that is a party 

2 to the trade agreement from weakening, elimi3 nating, or failing to enforce domestic environ4 mental or other public health or safety stand5 ards to promote trade or attract investment; 

6 (C) require each country that is a party to 

7 the trade agreement to implement and enforce 

8 fully and effectively, including through domestic 

9 law, the country’s obligations under multilateral 

10 environmental agreements and provide for the 

11 enforcement of such obligations under the trade 

12 agreement; 

13 (D) prohibit the trade of goods derived 

14 from illegally harvested or extracted natural re15 sources, at any stage of production, including 

16 timber and timber products, fish, wildlife, and 

17 associated products, mineral resources, and 

18 other environmentally sensitive goods; 

19 (E) provide that the failure to meet the en20 vironmental standards required by the trade 

21 agreement be subject to dispute resolution and 

22 enforcement mechanisms and penalties that are 

23 at least as effective as the mechanisms and pen24 alties that apply to the commercial provisions of 

25 the trade agreement; and 


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1 (F) allow each country that is a party to 

2 the trade agreement to adopt and implement 

3 environmental, health, and safety standards, 

4 recognizing the legitimate right of governments 

5 to protect the environment and public health 

6 and safety. 

7 (4) FOOD AND PRODUCT HEALTH AND SAFETY

8 STANDARDS.—If the trade agreement contains 

9 health and safety standards for food and other prod10 ucts, the trade agreement shall— 

11 (A) establish that food, feed, food ingredi12 ents, and other related food products may be 

13 imported into the United States from a country 

14 that is a party to the trade agreement only if 

15 such products meet or exceed United States 

16 standards with respect to food safety, pes17 ticides, inspections, packaging, and labeling; 

18 (B) establish that nonfood products may 

19 be imported into the United States from a 

20 country that is a party to the trade agreement 

21 only if such products meet or exceed United 

22 States standards with respect to health and 

23 safety, inspections, packaging, and labeling; 

24 (C) allow each country that is a party to 

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1 signed to protect public health and safety un2 less it can be clearly demonstrated that such 

3 standards do not protect the public health or 

4 safety; 

5 (D)(i) authorize the Commissioner of Food 

6 and Drugs and the Consumer Product Safety 

7 Commission to assess the regulatory system of 

8 each country that is a party to the trade agree9 ment to determine whether the system provides 

10 the same or better protection of health and 

11 safety for food and other products as provided 

12 under the regulatory system of the United 

13 States and authorize other appropriate United 

14 States Federal agencies to assess the regulatory 

15 system of each country that is party to the 

16 trade agreement to determine whether the sys17 tem provides the same or better quality controls 

18 on manufactured goods as provided under the 

19 regulatory system of the United States; 

20 (ii) if the Commissioner or the Commission 

21 determines that the regulatory system of such 

22 a country does not provide the same or better 

23 protection of health and safety for food and 

24 other products as provided under the regulatory 

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1 priate agency determines that the regulatory 

2 system of such a country does not provide the 

3 same or better quality controls on manufac4 tured goods as provided under the regulatory 

5 system of the United States, provide that the 

6 United States may prohibit the importation into 

7 the United States of food and other products 

8 from that country; and 

9 (iii) provide a process by which producers 

10 from countries whose regulatory systems are 

11 determined pursuant to clause (ii) by the Com12 missioner, the Commission, or another appro13 priate agency not to provide the same or better 

14 protection or quality controls as that provided 

15 under the regulatory system of the United 

16 States may have specific facilities inspected and 

17 certified so as to allow products from approved 

18 facilities to be imported into the United States; 

19 and 

20 (E) if harmonization of food or product 

21 health or safety standards is necessary to facili22 tate trade, provide that such harmonization be 

23 based on standards that are no less stringent 

24 than standards in the United States. 


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1 (5) SERVICES PROVISIONS.—If the trade agree2 ment contains provisions related to the provision of 

3 services, such provisions shall— 

4 (A) preserve the right of United States 

5 Federal, State, and local governments to main6 tain essential public services and to regulate, 

7 for the benefit of the public, services provided 

8 to consumers in the United States; 

9 (B)(i) require each country that is a party 

10 to the trade agreement to establish a positive 

11 list of each service sector that will be subject to 

12 the obligations of the country under the trade 

13 agreement; and 

14 (ii) apply the trade agreement only to the 

15 service sectors that are on the list described in 

16 clause (i); 

17 (C) establish a general exception to market 

18 access obligations that allows each country that 

19 is a party to the trade agreement to maintain 

20 or establish a ban on services that the country 

21 considers harmful to public health or safety, the 

22 environment, or public morals, if the ban is ap23 plied to domestic and foreign services and serv24 ice providers alike; 


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1 (D) require service providers of each coun2 try that is a party to the trade agreement that 

3 provide services through commercial presence in 

4 the United States to consumers in the United 

5 States to comply with environmental, land use, 

6 safety, privacy, transparency, professional quali7 fication, and consumer access laws and regula8 tions in the United States; 

9 (E) require that services provided to con10 sumers in the United States, such as medical 

11 and financial services, that are subject to pri12 vacy laws and regulations in the United States 

13 may only be provided by service providers in 

14 other countries that provide privacy protections 

15 and protections for confidential information 

16 that are equal to or exceed the protections pro17 vided by privacy laws and regulations in the 

18 United States; 

19 (F) not require the privatization of public 

20 services in any country that is a party to the 

21 trade agreement or the deregulation of a serv22 ice, including services related to national secu23 rity, social security, health, public safety, edu24 cation, water, sanitation, other utilities, ports, 

25 or transportation; 


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1 (G) not subject local governments to the 

2 service sector obligations under the trade agree3 ment; 

4 (H) not include provisions with respect to 

5 immigration or the movement of natural per6 sons; and 

7 (I) not limit any nondiscriminatory na8 tional, regional, or local government program 

9 that establishes reimbursement rates under 

10 public health insurance programs, or otherwise 

11 controls the costs of pharmaceuticals or medical 

12 devices. 

13 (6) INVESTMENT PROVISIONS.—If the trade 

14 agreement contains provisions related to investment, 

15 such provisions shall— 

16 (A) preserve the ability of each country 

17 that is a party to the trade agreement to regu18 late foreign investment in a manner consistent 

19 with the needs and priorities of the country; 

20 (B) allow each country that is a party to 

21 the trade agreement to place prudential restric22 tions on speculative capital to reduce global fi23 nancial instability and trade volatility; 


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1 (C) not be subject to an investor-state dis2 pute settlement mechanism under the trade 

3 agreement; 

4 (D) ensure that foreign investors operating 

5 in the United States are not afforded greater 

6 rights than those afforded to domestic investors 

7 by the Constitution and laws of the United 

8 States; 

9 (E) provide for government-to-government 

10 dispute resolution relating to expropriation only 

11 for those disputes relating to a government ac12 tion that destroys all value of the real property 

13 of a foreign investor permanently, but not gov14 ernment actions that do not merely diminish 

15 the value of property; 

16 (F) define the term ‘‘investment’’ to mean 

17 not more than a commitment of capital or ac18 quisition of real property and to exclude as19 sumption of risk or expectation of gain or prof20 it; 

21 (G) define the term ‘‘investor’’ to mean 

22 only a person who makes a commitment or ac23 quisition described in subparagraph (F); and 

24 (H) define the standard of minimum treat25 ment to provide no greater legal rights than 


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1 United States citizens possess under the due 

2 process clause of section 1 of the 14th amend3 ment to the Constitution of the United States. 

4 (7) PROCUREMENT STANDARDS.—If the trade 

5 agreement contains government procurement provi6 sions, such provisions shall— 

7 (A) require each country that is a party to 

8 the trade agreement to establish a positive list 

9 of industry sectors, goods, or services that will 

10 be subject to the obligations of the country 

11 under the trade agreement; 

12 (B) with respect to the United States, 

13 apply only to State governments that specifi14 cally agree to the trade agreement and only to 

15 the industry sectors, goods, or services specifi16 cally identified by the State government and 

17 not apply to local governments; and 

18 (C) include only technical specifications for 

19 goods or services, supplier qualifications, or 

20 other conditions for receiving government con21 tracts that do not undermine— 

22 (i) prevailing wage policies; 

23 (ii) recycled content policies; 

24 (iii) sustainable harvest policies; 

25 (iv) renewable energy policies; 


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1 (v) human rights; or 

2 (vi) project labor agreements. 

3 (8) INTELLECTUAL PROPERTY REQUIRE4 MENTS.—If the trade agreement contains provisions 

5 related to the protection of intellectual property 

6 rights, such provisions shall— 

7 (A) promote adequate and effective protec8 tion of intellectual property rights; 

9 (B) include only terms relating to patents 

10 that do not, overtly or in application, limit the 

11 flexibilities and rights established in the Dec12 laration on the TRIPS Agreement and Public 

13 Health, adopted by the World Trade Organiza14 tion at the Fourth Ministerial Conference at 

15 Doha, Qatar, on November 14, 2001, including 

16 the flexibilities and rights relating to the pro17 motion of access to medicines and the issuance 

18 of compulsory licenses on grounds determined 

19 by member states; 

20 (C) require that any provisions relating to 

21 the patenting of traditional knowledge be con22 sistent with the Convention on Biological Diver23 sity, concluded at Rio de Janeiro June 5, 1992; 

24 and 


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1 (D) ensure that the access of the public to 

2 essential medicines and to technologies critical 

3 to preventing climate change is not obstructed 

4 by any provision of the trade agreement relat5 ing to the protection of intellectual property 

6 rights. 

7 (9) AGRICULTURAL STANDARDS.—If the trade 

8 agreement contains provisions related to agriculture, 

9 such provisions shall— 

10 (A) ensure adequate and stable market re11 turns for farmers in each country that is a 

12 party to the trade agreement; 

13 (B) ensure adequate and affordable sup14 plies of safe food for consumers; 

15 (C) protect the right of each country that 

16 is a party to the trade agreement to encourage 

17 conservation through the use of best practices 

18 with respect to the management and production 

19 of crops; 

20 (D) ensure fair treatment of agricultural 

21 workers in each country that is a party to the 

22 trade agreement; 

23 (E) protect the right of each country that 

24 is a party to the trade agreement to prevent 

25 dumping of agricultural commodities at below 


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1 the cost of production through border regula2 tions or other mechanisms and policies; 

3 (F) protect the right of each country that 

4 is a party to the trade agreement to establish 

5 policies with respect to food and agriculture 

6 that require farmers to receive fair remunera7 tion for management and labor that occurs on 

8 farms and that allow for inventory management 

9 and strategic food and renewable energy re10 serves, while ensuring that such policies do not 

11 aid or abet, or otherwise contribute to or allow, 

12 the dumping of agricultural commodities onto 

13 world markets at below the cost of production; 

14 (G) preserve any existing United States 

15 law relating to antitrust and anticompetitive 

16 business practices from being preempted or ren17 dered ineffective by the trade agreement; and 

18 (H) not conflict with agricultural policy es19 tablished in the laws of the United States. 

20 (10) TRADE REMEDIES AND SAFEGUARDS.—If 

21 the trade agreement contains trade remedy provi22 sions, such provisions shall— 

23 (A) preserve fully the ability of the United 

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1 guard laws, the right to calculate 100 percent 

2 of the dumping in all antidumping proceedings, 

3 and the right to disburse domestically anti4 dumping and countervailing duties as the 

5 United States so determines; 

6 (B) not decrease the effectiveness of do7 mestic and international prohibitions on unfair 

8 trade, especially prohibitions on dumping and 

9 subsidies, and domestic and international safe10 guard provisions; 

11 (C) establish mechanisms to address and 

12 remedy market distortions that lead to dumping 

13 and subsidization, including overcapacity, car14 telization, and market-access barriers, by im15 posing strong sanctions against subsidies, in16 cluding applying the countervailing duty law 

17 when exporters receive tax rebates for indirect 

18 taxes upon export; 

19 (D) allow the United States to maintain 

20 adequate safeguards for a minimum of two 

21 years to ensure that surges of imported goods 

22 do not result in economic burdens on workers, 

23 firms, or farmers in the United States, includ24 ing providing that such safeguards go into ef25 fect based on certain criteria; 


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1 (E) establish mechanisms among the par2 ties to the trade agreement to examine the 

3 trade consequences of significant currency 

4 movements and to scrutinize whether a party’s 

5 currency is misaligned to promote a competitive 

6 advantage in international trade; and 

7 (F) if the currency of a country that is 

8 party to the trade agreement is deliberately 

9 misaligned, establish safeguard remedies that 

10 apply for a minimum period of two years to off11 set substantial and sustained currency move12 ments and also allow, alternatively, for the ap13 plication of countervailing duties. 

14 (11) DISPUTE RESOLUTION AND ENFORCEMENT

15 PROVISIONS.—If the trade agreement contains provi16 sions related to dispute resolution, such provisions 

17 shall— 

18 (A) incorporate due process rules and pro19 cedures, including ensuring that dispute resolu20 tion proceedings are open to the public, that 

21 public access to information regarding enforce22 ment, disputes, and ongoing negotiations re23 lated to disputes is provided in a timely man24 ner, and that conflict of interest rules apply 

25 fully to adjudicators; 


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1 (B) require that any dispute settlement 

2 panel, including an appellate panel, addressing 

3 issues involving intellectual property rights or 

4 environmental, health, labor, human rights, or 

5 other public interest issues include panelists 

6 with expertise in such issues; 

7 (C) require an expedited process for all 

8 dispute settlement panels and processes relating 

9 to violations of an agreement’s labor, human 

10 rights, and environmental obligations, recog11 nizing that environmental and labor rights and 

12 the health, safety, and freedom of people and 

13 possibly irreversible damage to the physical en14 vironment are fundamentally different than 

15 property rights and thus require establishment 

16 of more expeditious timelines, together with the 

17 necessary resources for oversight and enforce18 ment; and 

19 (D) require that panels reviewing anti20 dumping and countervailing duty proceedings of 

21 a party to the trade agreement apply a stand22 ard of review that gives deference to the admin23 istrating authority of the party whose measure 

24 is under review. 


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1 (12) TECHNICAL ASSISTANCE.—If the trade 

2 agreement contains technical assistance provisions, 

3 such provisions shall— 

4 (A) be designed to raise standards in de5 veloping countries by providing assistance that 

6 ensures respect for diversity of development 

7 paths; 

8 (B) be designed to empower civil society 

9 and democratic governments to create sustain10 able, vibrant economies and respect basic 

11 rights; and 

12 (C) provide that technical assistance shall 

13 not substitute for or supplant economic assist14 ance and not promote exportation of goods pro15 duced with the exploitation of labor or 

16 unsustainable environmental practices. 

17 (13) EXCEPTIONS FOR NATIONAL SECURITY

18 AND OTHER REASONS.—Each agreement shall— 

19 (A) include an essential security exception 

20 that permits a country that is a party to the 

21 trade agreement to apply measures that the 

22 country considers necessary for the mainte23 nance or restoration of international peace or 

24 security, or the protection of its own essential 

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1 frastructure, services, manufacturing, and other 

2 sectors; 

3 (B) explicitly state that if a country in4 vokes the essential security exception in a dis5 pute settlement proceeding relating to any mat6 ter other than compliance with the agreement’s 

7 worker rights, environment, human rights, 

8 health, or safety provisions, the dispute settle9 ment body hearing the matter shall find that 

10 the exception applies; 

11 (C) include a provision that gives priority 

12 to the implementation of bilateral or multilat13 eral agreements relating to public health, 

14 human and labor rights, the environment, or 

15 other public interest goals in the event of any 

16 inconsistency between the trade agreement and 

17 such bilateral or multilateral agreement; and 

18 (D) include in its list of general exceptions 

19 the following language: ‘‘Notwithstanding any 

20 other provision of this agreement, a provision of 

21 law that is nondiscriminatory on its face and 

22 relates to domestic health, consumer safety, the 

23 environment, labor rights, worker health and 

24 safety, economic equity, consumer access, the 

25 provision of goods or services, or investment, 


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1 shall not be subject to challenge under the dis2 pute resolution mechanism established under 

3 this agreement, unless the primary purpose of 

4 the law is to discriminate with respect to mar5 ket access.’’. 

6 (14) FEDERALISM.—The trade agreement may 

7 only require a State government in the United 

8 States to comply with procurement, investment, or 

9 services provisions contained in the trade agreement 

10 if the State government has been consulted in full 

11 and has given explicit consent to be bound by such 

12 provisions. 

13 (15) TAXATION.—Each agreement shall provide 

14 for border tax equity for United States producers 

15 and United States exporters in the assessment and 

16 rebate of indirect taxes (such as consumption and 

17 sales taxes), including by— 

18 (A) prohibiting the imposition of such 

19 taxes on United States exports when imported 

20 in excess of the level of such taxes applied at 

21 the border by the United States to imports 

22 from parties to the trade agreement, or 

23 (B) prohibiting the rebate of taxes on ex24 ports in amounts in excess of any such taxes re25 bated by the United States on United States 


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1 exports in excess of any such taxes rebated by 

2 the United States, 

3 or by adopting measures under both subparagraphs 

4 (A) and (B). 

5 SEC. 5. RENEGOTIATION OF EXISTING TRADE AGREE6 MENTS. 

7 (a) PLAN.—The President shall, at the times speci8 fied under subsection (b), submit to the Congress a plan 

9 for renegotiating each trade agreement that is in effect 

10 on the date of the enactment of this Act to bring the trade 

11 agreement into compliance with the requirements of sec12 tion 4(b). 

13 (b) TIMING.—The plan under subsection (a) shall be 

14 submitted not later than 90 days before the earlier of the 

15 day on which the President— 

16 (1) initiates negotiations with a foreign country 

17 with respect to the trade agreement being renegoti18 ated; or 

19 (2) submits a bill to Congress to implement the 

20 revised trade agreement. 

21 SEC. 6. ESTABLISHMENT OF CONGRESSIONAL TRADE 

22 AGREEMENT REVIEW COMMITTEE. 

23 (a) ESTABLISHMENT.—There is established a Con24 gressional Trade Agreement Review Committee (in this 

25 section referred to as the ‘‘Committee’’). 


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1 (b) FUNCTIONS.— 

2 (1) IN GENERAL.—The Committee— 

3 (A) shall receive the reports of the Comp4 troller General of the United States submitted 

5 to the Committee under section 3(a)(1)(B); 

6 (B) shall review the plan for renegotiation 

7 of trade agreements submitted by the President 

8 under section 5; and 

9 (C) may, not later than 60 days after re10 ceiving the plan described in subparagraph (B), 

11 taking into account the reports of the Comp12 troller General referred to in subparagraph (A), 

13 add items for renegotiation to the plan, reject 

14 recommendations in the plan, or otherwise 

15 amend the plan. 

16 (2) ACTION BY VOTE.—Action by the Committee under paragraph (1)(C) requires a vote of 2 17 ⁄3

18 of the Members of the Committee. 

19 (c) APPOINTMENT AND MEMBERSHIP.—The Com20 mittee shall be composed of the chair and ranking mem21 bers of the following: 

22 (1) The Committee on Agriculture of the House 

23 of Representatives. 

24 (2) The Committee on Education and Labor of 

25 the House of Representatives. 


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1 (3) The Committee on Energy and Commerce 

2 of the House of Representatives. 

3 (4) The Committee on Financial Services of the 

4 House of Representatives. 

5 (5) The Committee on Natural Resources of the 

6 House of Representatives. 

7 (6) The Committee on Ways and Means of the 

8 House of Representatives. 

9 (7) The Committee on Agriculture, Nutrition, 

10 and Forestry of the Senate. 

11 (8) The Committee on Banking, Housing, and 

12 Urban Affairs of the Senate. 

13 (9) The Committee on Commerce, Science, and 

14 Transportation of the Senate. 

15 (10) The Committee on Energy and Natural 

16 Resources of the Senate. 

17 (11) The Committee on Environment and Pub18 lic Works of the Senate. 

19 (12) The Committee on Finance of the Senate. 

20 (13) The Committee on Health, Education, 

21 Labor, and Pensions of the Senate. 

22 SEC. 7. SENSE OF CONGRESS ON IMPROVING THE PROCESS 

23 FOR UNITED STATES TRADE NEGOTIATIONS. 

24 It is the sense of the Congress that if Congress con25 siders legislation to provide for special procedures for the 


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1 consideration of bills to implement trade agreements, that 

2 legislation should include— 

3 (1) readiness criteria for the President to use in 

4 determining whether a country— 

5 (A) is able to meet its obligations under a 

6 trade agreement; 

7 (B) meets the requirements described in 

8 section 3(c); and 

9 (C) is an appropriate country with which 

10 to enter into a trade agreement; 

11 (2) a process by which the Committee on Fi12 nance of the Senate and the Committee on Ways 

13 and Means of the House of Representatives review 

14 the determination of the President described in 

15 paragraph (1) to verify that the country meets the 

16 criteria; 

17 (3) requirements for consultation with Congress 

18 during trade negotiations that require more frequent 

19 consultations than required by the Bipartisan Trade 

20 Promotion Authority Act of 2002 (19 U.S.C. 3801 

21 et seq.), including a process for consultation with 

22 any committee of Congress with jurisdiction over 

23 any area covered by the negotiations; 

24 (4) binding negotiating objectives and require25 ments outlining what must and must not be included 


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1 in a trade agreement, including the requirements de2 scribed in section 4(b); 

3 (5) a process for review and certification by the 

4 Congress to ensure that the negotiating objectives 

5 described in paragraph (4) have been met during the 

6 negotiations; 

7 (6) a process— 

8 (A) by which a State may give informed 

9 consent to be bound by nontariff provisions in 

10 a trade agreement that relate to investment, the 

11 service sector, and procurement; and 

12 (B) that prevents a State from being 

13 bound by the provisions described in subpara14 graph (A) if the State has not consented; and 

15 (7) a requirement that a trade agreement be 

16 approved by a majority vote in both Houses of Con17 gress before the President may sign the trade agree18 ment. 

Æ 


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