Jobs and Trade Competitiveness Act

To amend the Trade Act of 1974 to strengthen trade enforcement, and for other purposes. 1. Short title and table of contents (a) Short title This Act may be cited as the Jobs and Trade Competitiveness Act (b) Table of contents The table of contents for this Act is as follows: Sec. 1. Short title and table of contents. Title I—Office of the Congressional Trade Enforcer Sec. 101. Establishment. Sec. 102. Congressional Trade Enforcer. Sec. 103. Personnel. Sec. 104. Functions. Sec. 105. Office of Market Access Assistance. Sec. 106. Relationship to executive branch. Title II—Trade Enforcement Division and Deputy United States Trade Representative for Trade Enforcement Sec. 201. Establishment of Trade Enforcement Division and Deputy United States Trade Representative for Trade Enforcement. Sec. 202. Establishment of Chief Manufacturing Negotiator. Title III—Congressional Advisory Commission on WTO Dispute Settlement Sec. 301. Congressional findings and purpose. Sec. 302. Establishment of Commission. Sec. 303. Duties of the Commission. Sec. 304. Powers of the Commission. Sec. 305. Participation in WTO panel proceedings. Sec. 306. Definitions. Title IV—Imposition of countervailing duties to address subsidies relating to fundamentally undervalued currencies Sec. 401. Clarification regarding definition of countervailable subsidy. Sec. 402. Report on implementation of title. Sec. 403. Application to goods from Canada and Mexico. Title V—Procedures for investigating claims of evasion of antidumping and countervailing duty orders Sec. 501. Protection of business proprietary information. Sec. 502. Application to Canada and Mexico. Title VI—Matters to encourage domestic insourcing and discourage foreign outsourcing Sec. 601. Credit for insourcing expenses. Sec. 602. Denial of deduction for outsourcing expenses. Title VII—Matters relating to environmental protections Sec. 701. Environmental protection in trade relations. Sec. 702. Identification of foreign country trade practices that negatively affect the environment. Title VIII—Other matters Sec. 801. Modification of availability of amounts from Trade Enforcement Trust Fund. Sec. 802. Government Accountability Office report on commitments under certain international fora. Sec. 803. Government Accountability Office report on enforcement of child labor prohibition. Sec. 804. Congressional advisory groups on enforcement. I Office of the Congressional Trade Enforcer 101. Establishment There is established in the legislative branch an Office of the Congressional Trade Enforcer (in this title referred to as the Office 102. Congressional Trade Enforcer (a) Appointment The head of the Office shall be the Congressional Trade Enforcer, who shall be appointed by the Speaker of the House of Representatives, the minority leader of the House of Representatives, the majority leader of the Senate, and the minority leader of the Senate after considering recommendations received from the Committee on Ways and Means of the House of Representatives and the Committee on Finance of the Senate, without regard to political affiliation and solely on the basis of fitness to perform the functions described in section 104. (b) Term The term of office of the Congressional Trade Enforcer shall be 5 years. An individual serving as Congressional Trade Enforcer at the expiration of a term may continue to serve until a successor is appointed. The Congressional Trade Enforcer may be removed by either the House of Representatives or the Senate by resolution. (c) Compensation The Congressional Trade Enforcer shall receive compensation at an annual rate of pay that is equal to the lower of— (1) the highest annual rate of compensation of any officer of the Senate; or (2) the highest annual rate of compensation of any officer of the House of Representatives. 103. Personnel (a) In general The Congressional Trade Enforcer shall appoint and fix the compensation of such personnel as may be necessary to carry out the functions described in section 104. All personnel of the Office shall be appointed without regard to political affiliation and solely on the basis of their fitness to perform their duties. The Congressional Trade Enforcer may prescribe the duties and responsibilities of the personnel of the Office, and delegate to them authority to perform any of the duties, powers, and functions imposed on the Office. (b) Coverage under Congressional Accountability Act of 1995 (1) Treatment of employees as covered employees Section 101(3) of the Congressional Accountability Act of 1995 ( 2 U.S.C. 1301(3) (A) by striking or (B) by striking the period at the end of subparagraph (I) and inserting ; or (C) by adding at the end the following new subparagraph: (J) the Office of the Congressional Trade Enforcer. . (2) Treatment of Office as employing office Subparagraph (D) of section 101(9) of such Act ( 2 U.S.C. 1301(9) and the Office of Technology Assessment the Office of Technology Assessment, and the Office of the Congressional Trade Enforcer 104. Functions (a) Principle function The principle function of the Congressional Trade Enforcer shall be to ensure compliance by trading partners of the United States with trade agreements to which the United States is a party. (b) Other functions; actions by USTR (1) In general The Congressional Trade Enforcer shall have the authority to investigate foreign trade practices that are barriers to United States exports and issue indictments in cases where such practices violate any of the Uruguay Round Agreements or any bilateral or regional trade agreement to which the United States is a party. (2) Submission of indictments The Congressional Trade Enforcer shall submit indictments referred to in paragraph (1) to the Committee on Ways and Means of the House of Representatives, the Committee on Finance of the Senate, and the United States Trade Representative. (3) Action pursuant to indictment Within 30 days after receiving an indictment under paragraph (2), the Trade Representative, acting through the Deputy United States Trade Representative for Trade Enforcement should, in accordance with subsection (c)(1) of section 142 of the Trade Act of 1974, as added by section 201 of this Act, commence dispute resolution procedures in the appropriate forum against the country or countries that are the subject of the indictment unless— (A) prior to the date of filing, the foreign country or countries involved enters into an agreement with the United States to eliminate the practice that is inconsistent with its international obligations; or (B) in extraordinary cases, the filing of the case would cause serious harm to the national security of the United States. (4) Report If the Trade Representative does not commence dispute resolution procedures under paragraph (3) pursuant to an indictment under paragraph (3), the Trade Representative shall, not later than 30 days after receiving the indictment, submit to the Committee on Ways and Means of the House of Representatives and the Committee on Finance of the Senate a report containing the reasons therefor and shall publish notice of the decision, together with a summary of such reasons, in the Federal Register. (c) Action pursuant to joint resolution (1) In general If the Trade Representative does not commence dispute resolution procedures under subsection (b)(3) pursuant to an indictment under subsection (b)(2), then the Trade Representative shall commence dispute resolution procedures in the appropriate forum pursuant to the indictment upon the enactment pursuant to the requirements of paragraph (2) of a joint resolution described in paragraph (3). (2) Requirements (A) The requirements of this paragraph are met if the joint resolution is enacted under paragraph (3) and— (i) the Congress adopts and transmits the joint resolution to the President before the end of the 90-day period (excluding any day described in section 154(b) of the Trade Act of 1974), beginning on the date on which the Congressional Trade Enforcer submits the indictment under subsection (b)(2); and (ii) if the President vetoes the joint resolution, each House of Congress votes to override that veto on or before the later of the last day of the 90-day period referred to in clause (i) or the last day of the 15-day period (excluding any day described in section 154(b) of the Trade Act of 1974) beginning on the date on which the Congress receives the veto message from the President. (B) A joint resolution to which this subsection applies may be introduced at any time on or after the end of the 30-day period described in subsection (b)(3), and before the end of the 90-day period referred to in subparagraph (A). (3) Joint resolutions (A) Joint resolutions For purposes of this subsection, the term joint resolution That the United States Trade Representative shall commence dispute resolution procedures against _______ in ______ pursuant to the indictment submitted under section 204(b)(2) of the Trade Enforcement Act of 2017 on ______. (B) Procedures (i) Joint resolutions may be introduced in either House of the Congress by any member of such House. (ii) Subject to the provisions of this paragraph, the provisions of subsections (b), (d), (e), and (f) of section 152 of the Trade Act of 1974 ( 19 U.S.C. 2192 (iii) If the committee of either House to which a joint resolution has been referred has not reported it by the close of the 45th day after its introduction (excluding any day described in section 154(b) of the Trade Act of 1974), such committee shall be automatically discharged from further consideration of the joint resolution and it shall be placed on the appropriate calendar. (iv) It is not in order for— (I) the Senate to consider any joint resolution unless it has been reported by the Committee on Finance or the committee has been discharged under clause (iii); or (II) the House of Representatives to consider any joint resolution unless it has been reported by the Committee on Ways and Means or the committee has been discharged under clause (iii). (v) A motion in the House of Representatives to proceed to the consideration of a joint resolution may only be made on the second legislative day after the calendar day on which the Member making the motion announces to the House his or her intention to do so. (C) Consideration of second resolution not in order It shall not be in order in either the House of Representatives or the Senate to consider a joint resolution (other than a joint resolution received from the other House), if that House has previously adopted a joint resolution under this subsection. (D) Rules of House of Representatives and Senate This subsection is enacted by the Congress— (i) as an exercise of the rulemaking power of the House of Representatives and the Senate, respectively, and as such is deemed a part of the rules of each House, respectively, and such procedures supersede other rules only to the extent that they are inconsistent with such other rules; and (ii) with the full recognition of the constitutional right of either House to change the rules (so far as relating to the procedures of that House) at any time, in the same manner, and to the same extent as any other rule of that House. (d) Definitions In this section: (1) Indictment The term indictment (2) Uruguay round agreements The term Uruguay Round Agreements 19 U.S.C. 3511(a)(1) 105. Office of Market Access Assistance (a) Establishment There is established in the Office of the Congressional Trade Enforcer an Office of Market Access Assistance. (b) Functions The Office of Market Access Assistance shall provide technical and legal assistance and advice to eligible small businesses to enable such small businesses to prepare and file petitions (other than those which, in the opinion of the Office of Market Access Assistance, are frivolous) under section 302 of the Trade Act of 1974 ( 19 U.S.C. 2412 (c) Definition The term eligible small business eligible small business 106. Relationship to executive branch (a) Information The Congressional Trade Enforcer may secure directly from any department or agency of the United States information necessary to enable it to carry out this title. Upon request of the Congressional Trade Enforcer, the head of that department or agency shall provide that information to the Congressional Trade Enforcer. (b) Services, facilities, and personnel Upon request of the Congressional Trade Enforcer, the head of any Federal department or agency may provide or detail any of the services, facilities, and personnel of that department or agency to the Congressional Trade Enforcer to assist it in carrying out its duties under this title. II Trade Enforcement Division and Deputy United States Trade Representative for Trade Enforcement 201. Establishment of Trade Enforcement Division and Deputy United States Trade Representative for Trade Enforcement (a) Establishment Chapter 4 of title I of the Trade Act of 1974 ( 19 U.S.C. 2171 142. Trade Enforcement Division and Deputy United States Trade Representative for Trade Enforcement (a) Establishment of Trade Enforcement Division There is established within the Office of the United States Trade Representative a Trade Enforcement Division (in this section referred to as the Division (b) Establishment of position of Deputy United States Trade Representative for Trade Enforcement (1) In general The Division shall be headed by a Deputy United States Trade Representative for Trade Enforcement. (2) Appointment and nomination The Deputy United States Trade Representative for Trade Enforcement shall be appointed by the President, by and with the advice and consent of the Senate. As an exercise of the rulemaking power of the Senate, any nomination of the Deputy United States Trade Representative for Trade Enforcement submitted to the Senate for its advice and consent, and referred to a committee, shall be referred to the Committee on Finance. (3) Rank The Deputy United States Trade Representative for Trade Enforcement shall hold office at the pleasure of the President and shall have the rank of Ambassador. (c) Functions of Deputy United States Trade Representative for Trade Enforcement (1) Principal function The principal function of the Deputy United States Trade Representative for Trade Enforcement shall be to ensure that trading partners of the United States comply with trade agreements to which the United States is a party. (2) Additional functions The Deputy United States Trade Representative for Trade Enforcement shall— (A) assist the United States Trade Representative in investigating and prosecuting disputes before the World Trade Organization and pursuant to other bilateral or regional trade agreements to which the United States is a party; (B) assist the United States Trade Representative in carrying out the United States Trade Representative’s functions under section 141(d); (C) make recommendations with respect to the administration of United States trade laws relating to barriers imposed by foreign governments to the importation of United States goods, services, and intellectual property, and other trade matters; and (D) perform such other functions as the United States Trade Representative may direct. (d) Office of Trade Assistance for Small Business (1) Establishment There is established within the Division the Office of Trade Assistance for Small Business. (2) Functions The Office of Trade Assistance for Small Business shall provide technical and legal assistance and advice to eligible small businesses to enable such small businesses to prepare and file petitions (other than those that, in the opinion of the Office, are frivolous) under section 302. (3) Eligible small business defined The term eligible small business . (b) Conforming amendment The table of contents for the Trade Act of 1974 is amended by inserting after the item relating to section 141 the following: Sec. 142. Trade Enforcement Division and Deputy United States Trade Representative for Trade Enforcement. . (c) Compensation for Deputy United States Trade Representative for Trade Enforcement Section 5314 of title 5, United States Code, is amended by striking Deputy United States Trade Representatives (3). Deputy United States Trade Representatives (4). (d) Conforming repeal Section 2112 of the Bipartisan Trade Promotion Authority Act of 2002 ( 19 U.S.C. 3812 202. Establishment of Chief Manufacturing Negotiator (a) Establishment of positions Section 141(b)(2) of the Trade Act of 1974 ( 19 U.S.C. 2171(b)(2) (2) There shall be in the Office four Deputy United States Trade Representatives (including the Deputy United States Trade Representative for Trade Enforcement), one Chief Agricultural Negotiator, one Chief Innovation and Intellectual Property Negotiator, and one Chief Manufacturing Negotiator who shall all be appointed by the President, by and with the advice and consent of the Senate. As an exercise of the rulemaking power of the Senate, any nomination of a Deputy United States Trade Representative, the Chief Agricultural Negotiator, the Chief Innovation and Intellectual Property Negotiator, or the Chief Manufacturing Negotiator submitted to the Senate for its advice and consent, and referred to a committee, shall be referred to the Committee on Finance. Each Deputy United States Trade Representative, the Chief Agricultural Negotiator, the Chief Innovation and Intellectual Property Negotiator, and the Chief Manufacturing Negotiator shall hold office at the pleasure of the President and shall have the rank of Ambassador. . (b) Functions of Chief Manufacturing Negotiator Section 141(c) of the Trade Act of 1974 ( 19 U.S.C. 2171(c) (7) (A) The principal function of the Chief Manufacturing Negotiator shall be to conduct trade negotiations and to enforce trade agreements relating to United States manufacturing products and services. The Chief Manufacturing Negotiator shall promote manufacturing activities in the United States, shall serve as a vigorous advocate on behalf of United States manufacturing firms and workers, and shall perform such other functions as the United States Trade Representative may direct. (B) Not later than one year after the date of the enactment of this paragraph, and not less frequently than annually thereafter, the Chief Manufacturing Negotiator shall submit to the Committee on Finance of the Senate and the Committee on Ways and Means of the House of Representatives a report on the actions taken by the Chief Manufacturing Negotiator in the preceding year. . (c) Compensation Section 5314 of title 5, United States Code, is amended— (1) by striking Deputy United States Trade Representatives (3). Deputy United States Trade Representatives (4). (2) by inserting Chief Manufacturing Negotiator. Chief Agricultural Negotiator. (d) Conforming amendment Section 141(c)(4) of the Trade Act of 1974 ( 19 U.S.C. 2171(c)(4) (other than the Deputy United States Trade Representative for Trade Enforcement) Deputy United States Trade Representative (e) Technical amendments Section 141(e) of the Trade Act of 1974 ( 19 U.S.C. 2171(e) (1) in paragraph (1), by striking 5314 5315 (2) in paragraph (2), by striking the maximum rate of pay for grade GS–18, as provided in section 5332 the maximum rate of pay for level IV of the Executive Schedule in section 5315 III Congressional Advisory Commission on WTO Dispute Settlement 301. Congressional findings and purpose (a) Findings Congress finds the following: (1) The United States joined the World Trade Organization as an original member with the goal of creating an improved global trading system and providing expanded economic opportunities for United States workers, farmers, and businesses. (2) The dispute settlement rules of the WTO were created to enhance the likelihood that governments will observe their WTO obligations. (3) These dispute settlement rules help ensure that the United States can reap the full benefits of its participation in the WTO. (4) Successful operation of the WTO dispute settlement system was critical to congressional approval of the Uruguay Round Agreements and is critical to continued support by the United States for the WTO. In particular, it is imperative that dispute settlement panels and the Appellate Body— (A) operate with fairness and in an impartial manner; (B) strictly observe the terms of reference and any applicable standard of review set forth in the Uruguay Round Agreements; and (C) not add to the obligations, or diminish the rights, of WTO members under the Uruguay Round Agreements in violation of Articles 3.2 and 19.2 of the Dispute Settlement Understanding. (5) An increasing number of reports by dispute settlement panels and the Appellate Body have raised serious concerns within the Congress about the ability of the WTO dispute settlement system to operate in accordance with paragraph (4). (6) In particular, several reports of dispute settlement panels and the Appellate Body have added to the obligations and diminished the rights of WTO members, particularly under the Agreement on Implementation of Article VI of the General Agreement on Tariffs and Trade 1994, the Agreement on Subsidies and Countervailing Measures, and the Agreement on Safeguards. (7) In order to come into compliance with reports of dispute settlement panels and the Appellate Body that have been adopted by the Dispute Settlement Body, the Congress may need to amend or repeal statutes of the United States. In such cases, the Congress must have a high degree of confidence that the reports are in accordance with paragraph (4). (8) The Congress needs impartial, objective, and juridical advice to determine the appropriate response to reports of dispute settlement panels and the Appellate Body. (9) The United States remains committed to the multilateral, rules-based trading system. (b) Purpose It is the purpose of this Act to provide for the establishment of the Congressional Advisory Commission on WTO Dispute Settlement to provide objective and impartial advice to the Congress on the operation of the dispute settlement system of the World Trade Organization. 302. Establishment of Commission (a) Establishment There is established a commission to be known as the Congressional Advisory Commission on WTO Dispute Settlement (in this title referred to as the Commission (b) Membership (1) Composition The Commission shall be composed of 5 members, all of whom shall be judges or former judges of the Federal judicial circuits and shall be appointed by the Speaker of the House of Representatives and the President pro tempore of the Senate after considering the recommendations of the Chairman and ranking member of the Committee on Finance of the Senate and the Chairman and ranking member of the Committee on Ways and Means of the House of Representatives. Commissioners shall be chosen without regard to political affiliation and solely on the basis of each Commissioner's fitness to perform the duties of a Commissioner. (2) Date The appointments of the initial members of the Commission shall be made not later than 90 days after the date of the enactment of this Act. (c) Period of appointment; vacancies (1) In general Members of the Commission shall each be appointed for a term of 5 years, except that of the members first appointed, 3 members shall be appointed for terms of 3 years. (2) Vacancies (A) In general Any vacancy on the Commission shall not affect its powers, but shall be filled in the same manner as the original appointment was made and shall be subject to the same conditions as the original appointment. (B) Unexpired term An individual chosen to fill a vacancy shall be appointed for the unexpired term of the member replaced. (d) Initial meeting Not later than 30 days after the date on which all members of the Commission have been appointed, the Commission shall hold its first meeting. (e) Meetings The Commission shall meet at the call of the Chairperson. (f) Quorum A majority of the members of the Commission shall constitute a quorum, but a lesser number of members may hold hearings. (g) Chairperson and vice chairperson The Commission shall select a Chairperson and Vice Chairperson from among its members. (h) Funding Members of the Commission shall be allowed travel expenses, including per diem in lieu of subsistence at rates authorized for employees of agencies under subchapter I of chapter 57 303. Duties of the Commission (a) Advising Congress on the operation of the WTO dispute settlement system (1) In general The Commission shall review— (A) all adverse reports of dispute settlement panels and the Appellate Body which are— (i) adopted by the Dispute Settlement Body; and (ii) the result of a proceeding initiated against the United States by a WTO member; and (B) upon the request of the Committee on Ways and Means of the House of Representatives or the Committee on Finance of the Senate— (i) any adverse report of a dispute settlement panel or the Appellate Body— (I) which is adopted by the Dispute Settlement Body; and (II) in which the United States is a complaining party; or (ii) any other finding which is contained in a report of a dispute settlement panel or the Appellate Body that is adopted by the Dispute Settlement Body. (2) Scope of review The Commission shall advise the Congress in connection with each adverse finding or other finding under paragraph (1)(B) only whether— (A) the dispute settlement panel or the Appellate Body, as the case may be— (i) exceeded its authority or its terms of reference; (ii) added to the obligations, or diminished the rights, of the United States under the Uruguay Round Agreement which is the subject of the finding; (iii) acted arbitrarily or capriciously, engaged in misconduct, or demonstrably departed from the procedures specified for panels and the Appellate Body in the applicable Uruguay Round Agreement; and (iv) deviated from the applicable standard of review, including in antidumping, countervailing duty, and other unfair trade remedy cases, the standard of review set forth in Article 17.6 of the Agreement on Implementation of Article VI of the General Agreement on Tariffs and Trade 1994; and (B) the finding is consistent with the original understanding by the United States of the Uruguay Round Agreement that is the subject of the finding as explained in the statement of administrative action approved under section 101(a) of the Uruguay Round Agreements Act ( 19 U.S.C. 3511(a) (3) No deference Applying the standards set forth in paragraph (2) requires that the Commission not accord deference to findings of law made by the dispute settlement panel or the Appellate Body, as the case may be. (b) Determination; report (1) Determination (A) In general Not later than 150 days after the date on which the Commission receives notice of a report or request under section 304(b), the Commission shall make a written determination with respect to the matters described in paragraph (2) of subsection (a), including a full analysis of the basis for its determination. A vote by a majority of the members of the Commission shall constitute a determination of the Commission, although the members need not agree on the basis for their vote. (B) Dissenting or concurring opinions Any member of the Commission who disagrees with a determination of the Commission or who concurs in such a determination on a basis different from that of the Commission or other members of the Commission, may write an opinion expressing such disagreement or concurrence, as the case may be. (2) Report The Commission shall promptly report the determinations described in paragraph (1)(A) to the Committee on Ways and Means of the House of Representatives and the Committee on Finance of the Senate. The Commission shall include with the report any opinions written under paragraph (1)(B) with respect to the determination. (c) Availability to the public Each report of the Commission under subsection (b)(2), together with the opinions included with the report, shall be made available to the public. 304. Powers of the Commission (a) Hearings The Commission may hold a public hearing to solicit views concerning a report of a dispute settlement panel or the Appellate Body described in section 303(a)(1), if the Commission considers such hearing to be necessary to carry out the purpose of this Act. The Commission shall provide reasonable notice of a hearing held pursuant to this subsection. (b) Information from interested parties and Federal agencies (1) Notice to Commission (A) Under section 303(a)(1)(A) The Trade Representative shall advise the Commission not later than 5 business days after the date the Dispute Settlement Body adopts a report of a panel or the Appellate Body that is to be reviewed by the Commission under section 303(a)(1)(A). (B) Under section 303(a)(1)(B) The Committee on Ways and Means or the Committee on Finance, as the case may be, may make and notify the Commission of a request under section 303(a)(1)(B) not later than 1 year after the Dispute Settlement Body adopts the report that is the subject of the request. (C) Reports adopted prior to appointment of commission With respect to any report to which section 303(a)(1)(B) applies and that is adopted before the date on which the first members of the Commission are appointed under section 302(b)(2), the Committee on Ways and Means or the Committee on Finance, as the case may be, may make and notify the Commission of a request under section 303(a)(1)(B) with respect to that report not later than 1 year after the date on which the first members of the Commission are appointed under section 302(b)(2). (2) Submissions and requests for information (A) In general The Commission shall promptly publish in the Federal Register notice of the notice received under paragraph (1) from the Trade Representative, the Committee on Ways and Means, or the Committee on Finance, as the case may be, along with notice of an opportunity for interested parties to submit written comments to the Commission. The Commission shall make comments submitted pursuant to the preceding sentence available to the public. (B) Information from federal agencies and departments The Commission may also secure directly from any Federal department or agency such information as the Commission considers necessary to carry out the provisions of this Act. Upon the request of the chairperson of the Commission, the head of such department or agency shall furnish the information requested to the Commission in a timely manner. (3) Access to panel and Appellate Body documents (A) In general The Trade Representative shall make available to the Commission all submissions and relevant documents relating to a report of a panel or the Appellate Body described in section 303(a)(1), including any information contained in such submissions identified by the provider of the information as proprietary information or information designated as confidential by a foreign government. (B) Public access Any document which the Trade Representative submits to the Commission shall be available to the public, except information which is identified as proprietary or confidential or the disclosure of which would otherwise violate the rules of the WTO. (c) Assistance from Federal agencies; confidentiality (1) Administrative assistance Any agency or department of the United States that is designated by the President shall provide administrative services, funds, facilities, staff, or other support services to the Commission to assist the Commission with the performance of the Commission's functions. (2) Confidentiality The Commission shall protect from disclosure any document or information submitted to it by a department or agency of the United States which the agency or department requests be kept confidential. The Commission shall not be considered to be an agency for purposes of section 552 of title 5, United States Code. 305. Participation in WTO panel proceedings (a) In general If the United States Trade Representative, in proceedings before a dispute settlement panel or the Appellate Body of the WTO, seeks to enforce United States rights under a multilateral trade agreement or to defend a challenged action or determination of the United States Government, a United States citizen or an alien lawfully admitted for permanent residence to the United States that— (1) is supportive of the United States Government’s position before the panel or Appellate Body; and (2) has a direct economic interest in the panel’s or Appellate Body’s resolution of the matters in dispute, shall, to the extent appropriate, be permitted to participate in consultations and panel proceedings. The Trade Representative shall issue regulations, consistent with subsections (b) and (c), ensuring full and effective participation by any such private person. (b) Access to information The United States Trade Representative shall make available to persons described in subsection (a) all information presented to or otherwise obtained by the Trade Representative in connection with a WTO dispute settlement proceeding. The United States Trade Representative shall promulgate regulations implementing a protective order system to protect information designated by the submitting member as confidential. (c) Participation in panel process Upon request from a person described in subsection (a), the United States Trade Representative shall— (1) consult in advance with such person regarding the content of written submissions from the United States to the WTO panel concerned or to the other member countries involved; (2) include, where appropriate, such person or its appropriate representative as an advisory member of the delegation in sessions of the dispute settlement panel; (3) allow such special delegation member, where such member would bring special knowledge to the proceeding, to appear before the panel, directly or through counsel, under the supervision of responsible United States Government officials; and (4) in proceedings involving confidential information, allow appearance of such person only through counsel as a member of the special delegation. 306. Definitions In this title: (1) Adverse finding The term adverse finding (A) in a proceeding of a panel or the Appellate Body that is initiated against the United States, a finding by the panel or the Appellate Body that any law or regulation of, or application thereof by, the United States, or any State, is inconsistent with the obligations of the United States under a Uruguay Round Agreement (or nullifies or impairs benefits accruing to a WTO member under such an Agreement); or (B) in a proceeding of a panel or the Appellate Body in which the United States is a complaining party, any finding by the panel or the Appellate Body that a measure of the party complained against is not inconsistent with that party's obligations under a Uruguay Round Agreement (or does not nullify or impair benefits accruing to the United States under such an Agreement). (2) Appellate body The term Appellate Body (3) Dispute settlement body The term Dispute Settlement Body (4) Dispute settlement panel; panel The terms dispute settlement panel panel (5) Dispute settlement understanding The term Dispute Settlement Understanding 19 U.S.C. 3511(d)(16) (6) Terms of reference The term terms of reference (7) Trade representative The term Trade Representative (8) Uruguay round agreement The term Uruguay Round Agreement (9) World trade organization; wto The terms World Trade Organization WTO (10) WTO agreement The term WTO Agreement (11) WTO member The term WTO member 19 U.S.C. 3501(10) IV Imposition of countervailing duties to address subsidies relating to fundamentally undervalued currencies 401. Clarification regarding definition of countervailable subsidy (a) Benefit conferred Section 771(5)(E) of the Tariff Act of 1930 ( 19 U.S.C. 1677(5)(E) (1) in clause (iii), by striking and (2) in clause (iv), by striking the period at the end and inserting , and (3) by inserting after clause (iv) the following new clause: (v) in the case in which the currency of a country in which the subject merchandise is produced is exchanged for foreign currency obtained from export transactions, and the currency of such country is a fundamentally undervalued currency, as defined in paragraph (37), the difference between the amount of the currency of such country provided and the amount of the currency of such country that would have been provided if the real effective exchange rate of the currency of such country were not undervalued, as determined pursuant to paragraph (38). . (b) Export subsidy Section 771(5A)(B) of the Tariff Act of 1930 (19 U.S.C. 1677(5A)(B)) is amended by adding at the end the following new sentence: In the case of a subsidy relating to a fundamentally undervalued currency, the fact that the subsidy may also be provided in circumstances not involving export shall not, for that reason alone, mean that the subsidy cannot be considered contingent upon export performance. (c) Definition of fundamentally undervalued currency Section 771 of the Tariff Act of 1930 ( 19 U.S.C. 1677 (37) Fundamentally undervalued currency The administering authority shall determine that the currency of a country in which the subject merchandise is produced is a fundamentally undervalued currency (A) the government of the country (including any public entity within the territory of the country) engages in protracted, large-scale intervention in one or more foreign exchange markets during part or all of the 18-month period that represents the most recent 18 months for which the information required under paragraph (38) is reasonably available, but that does not include any period of time later than the final month in the period of investigation or the period of review, as applicable; (B) the real effective exchange rate of the currency is undervalued by at least 5 percent, on average and as calculated under paragraph (38), relative to the equilibrium real effective exchange rate for the country’s currency during the 18-month period; (C) during the 18-month period, the country has experienced significant and persistent global current account surpluses; and (D) during the 18-month period, the foreign asset reserves held by the government of the country exceed— (i) the amount necessary to repay all debt obligations of the government falling due within the coming 12 months; (ii) 20 percent of the country’s money supply, using standard measures of M2; and (iii) the value of the country’s imports during the previous 4 months. . (d) Definition of real effective exchange rate undervaluation Section 771 of the Tariff Act of 1930 ( 19 U.S.C. 1677 (38) Real effective exchange rate undervaluation The calculation of real effective exchange rate undervaluation, for purposes of paragraph (5)(E)(v) and paragraph (37), shall— (A) (i) rely upon, and where appropriate be the simple average of, the results yielded from application of the approaches described in the guidelines of the International Monetary Fund’s Consultative Group on Exchange Rate Issues; or (ii) if the guidelines of the International Monetary Fund’s Consultative Group on Exchange Rate Issues are not available, be based on generally accepted economic and econometric techniques and methodologies to measure the level of undervaluation; (B) rely upon data that are publicly available, reliable, and compiled and maintained by the International Monetary Fund or, if the International Monetary Fund cannot provide the data, by other international organizations or by national governments; and (C) use inflation-adjusted, trade-weighted exchange rates. . 402. Report on implementation of title (a) In general Not later than 9 months after the date of the enactment of this Act, the Comptroller General of the United States shall submit to Congress a report on the implementation of the amendments made by this title. (b) Matters To be included The report required by subsection (a) shall include a description of the extent to which United States industries that have been materially injured by reason of imports of subject merchandise produced in foreign countries with fundamentally undervalued currencies have received relief under title VII of the Tariff Act of 1930 ( 19 U.S.C. 1671 403. Application to goods from Canada and Mexico Pursuant to article 1902 of the North American Free Trade Agreement and section 408 of the North American Free Trade Agreement Implementation Act of 1993 ( 19 U.S.C. 3438 V Procedures for investigating claims of evasion of antidumping and countervailing duty orders 501. Protection of business proprietary information Section 517(b) of the Tariff Act of 1930 ( 19 U.S.C. 1517(b) (8) Business proprietary information (A) Establishment of procedures For each investigation conducted under paragraph (1), the Commissioner shall establish procedures for the submission of business proprietary information under an administrative protective order that— (i) protects against public disclosure of such information; and (ii) for purposes of submitting comments to the Commissioner, provides limited access to such information for— (I) the person that submitted the petition under paragraph (2); and (II) the person alleged to have entered covered merchandise into the customs territory of the United States through evasion. (B) Administration in accordance with other procedures The procedures established under subparagraph (A) shall be administered, to the maximum extent practicable, in accordance with administrative protective order procedures under section 777 by the administering authority. (C) Disclosure of business proprietary information The Commissioner shall, in accordance with the procedures established under subparagraph (A), make all business proprietary information presented to, or obtained by, the Commissioner during an investigation available to the persons specified in subparagraph (A)(ii) under an administrative protective order, regardless of when such information is submitted during an investigation. . 502. Application to Canada and Mexico Pursuant to article 1902 of the North American Free Trade Agreement and section 408 of the North American Free Trade Agreement Implementation Act ( 19 U.S.C. 3438 VI Matters to encourage domestic insourcing and discourage foreign outsourcing 601. Credit for insourcing expenses (a) In general Subpart D of part IV of subchapter A of chapter 1 45S. Credit for insourcing expenses (a) In general For purposes of section 38, the insourcing expenses credit for any taxable year is an amount equal to 20 percent of the eligible insourcing expenses of the taxpayer which are taken into account in such taxable year under subsection (d). (b) Eligible insourcing expenses For purposes of this section— (1) In general The term eligible insourcing expenses (A) eligible expenses paid or incurred by the taxpayer in connection with the elimination of any business unit of the taxpayer (or of any member of any expanded affiliated group in which the taxpayer is also a member) located outside the United States, and (B) eligible expenses paid or incurred by the taxpayer in connection with the establishment of any business unit of the taxpayer (or of any member of any expanded affiliated group in which the taxpayer is also a member) located within the United States, if such establishment constitutes the relocation of the business unit so eliminated. For purposes of the preceding sentence, a relocation shall not be treated as failing to occur merely because such elimination occurs in a different taxable year than such establishment. (2) Eligible expenses The term eligible expenses (A) any amount for which a deduction is allowed to the taxpayer under section 162, and (B) permit and license fees, lease brokerage fees, equipment installation costs, and, to the extent provided by the Secretary, other similar expenses. Such term does not include any compensation which is paid or incurred in connection with severance from employment and, to the extent provided by the Secretary, any similar amount. (3) Business unit The term business unit (A) any trade or business, and (B) any line of business, or functional unit, which is part of any trade or business. (4) Expanded affiliated group The term expanded affiliated group more than 50 percent at least 80 percent (5) Expenses must be pursuant to insourcing plan Amounts shall be taken into account under paragraph (1) only to the extent that such amounts are paid or incurred pursuant to a written plan to carry out the relocation described in paragraph (1). (6) Operating expenses not taken into account Any amount paid or incurred in connection with the ongoing operation of a business unit shall not be treated as an amount paid or incurred in connection with the establishment or elimination of such business unit. (c) Increased domestic employment requirement No credit shall be allowed under this section unless the number of full-time equivalent employees of the taxpayer for the taxable year for which the credit is claimed exceeds the number of full-time equivalent employees of the taxpayer for the last taxable year ending before the first taxable year in which such eligible insourcing expenses were paid or incurred. For purposes of this subsection, full-time equivalent employees has the meaning given such term under section 45R(d) (and the applicable rules of section 45R(e)), determined by only taking into account wages (as otherwise defined in section 45R(e)) paid with respect to services performed within the United States. All employers treated as a single employer under subsection (b), (c), (m), or (o) of section 414 shall be treated as a single employer for purposes of this subsection. (d) Credit allowed upon completion of insourcing plan (1) In general Except as provided in paragraph (2), eligible insourcing expenses shall be taken into account under subsection (a) in the taxable year during which the plan described in subsection (b)(5) has been completed and all eligible insourcing expenses pursuant to such plan have been paid or incurred. (2) Election to apply employment test and claim credit in first full taxable year after completion of plan If the taxpayer elects the application of this paragraph, eligible insourcing expenses shall be taken into account under subsection (a) in the first taxable year after the taxable year described in paragraph (1). (e) Possessions treated as part of the United States For purposes of this section, the term United States (f) Regulations The Secretary shall prescribe such regulations or other guidance as may be necessary or appropriate to carry out the purposes of this section. . (b) Credit To Be Part of General Business Credit Section 38(b) of such Code is amended by striking plus , plus (37) the insourcing expenses credit determined under section 45S(a). . (c) Clerical amendment The table of sections for subpart D of part IV of subchapter A of chapter 1 of such Code is amended by adding at the end the following new item: Sec. 45S. Credit for insourcing expenses. . (d) Effective date The amendments made by this section shall apply to amounts paid or incurred after the date of the enactment of this Act. (e) Application to United States possessions (1) Payments to possessions (A) Mirror code possessions The Secretary of the Treasury shall make periodic payments to each possession of the United States with a mirror code tax system in an amount equal to the loss to that possession by reason of section 45S (B) Other possessions The Secretary of the Treasury shall make annual payments to each possession of the United States which does not have a mirror code tax system in an amount estimated by the Secretary of the Treasury as being equal to the aggregate benefits that would have been provided to residents of such possession by reason of section 45S of such Code if a mirror code tax system had been in effect in such possession. The preceding sentence shall not apply with respect to any possession of the United States unless such possession has a plan, which has been approved by the Secretary of the Treasury, under which such possession will promptly distribute such payment to the residents of such possession. (2) Coordination with credit allowed against United States income taxes No credit shall be allowed against United States income taxes under section 45S of such Code to any person— (A) to whom a credit is allowed against taxes imposed by the possession by reason of such section, or (B) who is eligible for a payment under a plan described in paragraph (1)(B). (3) Definitions and special rules (A) Possessions of the United States For purposes of this section, the term possession of the United States (B) Mirror code tax system For purposes of this section, the term mirror code tax system (C) Treatment of payments For purposes of section 1324(b)(2) of title 31, United States Code, the payments under this section shall be treated in the same manner as a refund due from sections referred to in such section 1324(b)(2). 602. Denial of deduction for outsourcing expenses (a) In general Part IX of subchapter B of chapter 1 280I. Outsourcing expenses (a) In general No deduction otherwise allowable under this chapter shall be allowed for any specified outsourcing expense. (b) Specified outsourcing expense For purposes of this section— (1) In general The term specified outsourcing expense (A) any eligible expense paid or incurred by the taxpayer in connection with the elimination of any business unit of the taxpayer (or of any member of any expanded affiliated group in which the taxpayer is also a member) located within the United States, and (B) any eligible expense paid or incurred by the taxpayer in connection with the establishment of any business unit of the taxpayer (or of any member of any expanded affiliated group in which the taxpayer is also a member) located outside the United States, if such establishment constitutes the relocation of the business unit so eliminated. For purposes of the preceding sentence, a relocation shall not be treated as failing to occur merely because such elimination occurs in a different taxable year than such establishment. (2) Application of certain definitions and rules (A) Definitions For purposes of this section, the terms eligible expenses business unit expanded affiliated group (B) Operating expenses not taken into account A rule similar to the rule of section 45S(b)(6) shall apply for purposes of this section. (c) Special rules (1) Application to deductions for depreciation and amortization In the case of any portion of a specified outsourcing expense which is not deductible in the taxable year in which paid or incurred, such portion shall neither be chargeable to capital account nor amortizable. (2) Possessions treated as part of the United States For purposes of this section, the term United States (d) Regulations The Secretary shall prescribe such regulations or other guidance as may be necessary or appropriate to carry out the purposes of this section, including regulations which provide (or create a rebuttable presumption) that certain establishments of business units outside the United States will be treated as relocations (based on timing or such other factors as the Secretary may provide) of business units eliminated within the United States. . (b) Limitation on subpart F income of controlled foreign corporations determined without regard to specified outsourcing expenses Section 952(c) of such Code is amended by adding at the end the following new paragraph: (4) Earnings and profits determined without regard to specified outsourcing expenses For purposes of this subsection, earnings and profits of any controlled foreign corporation shall be determined without regard to any specified outsourcing expense (as defined in section 280I(b)). . (c) Clerical amendment The table of sections for part IX of subchapter B of chapter 1 of such Code is amended by adding at the end the following new item: Sec. 280I. Outsourcing expenses. . (d) Effective date The amendments made by this section shall apply to amounts paid or incurred after the date of the enactment of this Act. VII Matters relating to environmental protections 701. Environmental protection in trade relations Section 301(d)(3)(B) of the Trade Act of 1974 ( 19 U.S.C. 2411(d)(3)(B) (1) in clause (iii)(V), by striking or (2) in clause (iv), by striking the period at the end and inserting , or (3) by moving clause (iv), as so amended, two ems to the left; and (4) by adding at the end the following: (v) constitutes a persistent pattern of conduct that— (I) fails to effectively enforce the environmental laws of a foreign country, (II) waives or otherwise derogates from the environmental laws of a foreign country or weakens the protections afforded by such laws, (III) fails to provide for judicial or administrative proceedings giving access to remedies for violations of the environmental laws of a foreign country, (IV) fails to provide appropriate and effective sanctions or remedies for violations of the environmental laws of a foreign country, or (V) fails to implement environmental commitments in agreements to which a foreign country and the United States are a party. . 702. Identification of foreign country trade practices that negatively affect the environment (a) In general Chapter 1 of title III of the Trade Act of 1974 ( 19 U.S.C. 2411 311. Identification of foreign country trade practices that negatively affect the environment (a) Identification (1) In general The Trade Representative shall identify those foreign country trade practices that cause negative environmental impacts on the protection of human, animal, or plant life or health, or the conservation of exhaustible natural resources in the United States, the foreign country, a third country, or internationally. (2) Factors In identifying foreign country trade practices under paragraph (1), the Trade Representative shall take into account all relevant factors, including— (A) the strength of the connection between trade and the negative environmental impact; (B) the significance of the negative environmental impact on the protection of human, animal or plant life or health, or the conservation of exhaustible natural resources; and (C) the costs and benefits of addressing the negative environmental impact through the authorities under section 301. (3) Consultation In identifying foreign country trade practices under paragraph (1), the Trade Representative shall provide the opportunity for input by and consultation with interested persons, including private or nongovernmental organizations working towards environmental protection or conservation, domestic industrial users of any goods that may be affected by this section, and appropriate Federal departments and agencies. (b) Report (1) In general Not later than 270 days after the date of submission of a report under section 181(b) of this Act, and every 2 years thereafter, the Trade Representative shall submit to the Committee on Ways and Means of the House of Representatives and the Committee on Finance of the Senate and publish in the Federal Register a report on the foreign country trade practices identified under subsection (a). (2) Matters to be included The Trade Representative may include in the report, if appropriate— (A) a description of other foreign country trade practices that may in the future warrant inclusion in the report as foreign country trade practices that negatively affect the environment; and (B) a statement regarding other foreign country trade practices that negatively affect the environment that have not been identified because they are subject to other provisions of United States trade law, existing bilateral trade agreements, or trade negotiations, and progress is being made toward the mitigation, reduction, or elimination of the negative environmental impacts of such foreign country trade practices. . (b) Clerical amendment The table of contents for the Trade Act of 1974 is amended by inserting after the item relating to section 310 the following new item: Sec. 311. Identification of foreign country trade practices that negatively affect the environment. . VIII Other matters 801. Modification of availability of amounts from Trade Enforcement Trust Fund Section 611(d)(1) of the Trade Facilitation and Trade Enforcement Act of 2015 ( Public Law 114–125 19 U.S.C. 4405(d)(1) , only as provided by appropriations Acts, 802. Government Accountability Office report on commitments under certain international fora (a) In general Not later than December 31 of each year after 2018, the Comptroller General of the United States shall submit to the Committee on Ways and Means of the House of Representatives and the Committee on Finance of the Senate a report that assesses the progress in achieving compliance by other countries with commitments made under the international fora described in subsection (b). (b) International fora described The international fora described in this subsection are the following: (1) The Group of Seven (G–7). (2) The Group of Twenty (G–20). (3) The International Monetary Fund. (4) The U.S.-China Strategic and Economic Dialogue. (5) The U.S.-China Joint Commission on Commerce and Trade. (6) The Global Forum on Excess Steel Capacity. (7) The Steel Committee of the Organization for Economic Cooperation and Development. (8) The High Level Economic Dialogue with Mexico. (9) The U.S.-India Strategic and Commercial Dialogue. 803. Government Accountability Office report on enforcement of child labor prohibition Not later than May 31 of each year after 2018, the Comptroller General of the United States shall submit to the Committee on Ways and Means of the House of Representatives and the Committee on Finance of the Senate a report that assesses the progress in ensuring that goods made with child labor do not enter the customs territory of the United States. 804. Congressional advisory groups on enforcement (a) In general Section 104(c) of the Bipartisan Congressional Trade Priorities and Accountability Act of 2015 ( 19 U.S.C. 4203(c) (1) by redesignating subsections (d) through (f) as subsections (e) through (g), respectively; and (2) by inserting after subsection (c) the following: (d) Congressional advisory groups on enforcement (1) In general By not later than 60 days after the date of the enactment of the Trade Enforcement Act of 2017, and not later than 30 days after the convening of each Congress, the chairman of the Committee on Ways and Means of the House of Representatives shall convene the House Advisory Group on Enforcement and the chairman of the Committee on Finance of the Senate shall convene the Senate Advisory Group on Enforcement (in this subsection referred to collectively as the congressional advisory groups on enforcement (2) Members and functions (A) Membership of the house advisory group on enforcement In each Congress, the House Advisory Group on Enforcement shall be comprised of the following Members of the House of Representatives: (i) The chairman and ranking minority member of the Committee on Ways and Means and every member of the Subcommittee of Trade of such committee. (ii) The chairman and ranking minority member, or their designees, of the committees of the House of Representatives that would have, under the Rules of the House of Representatives, jurisdiction over provisions of law affected by trade enforcement at any time during that Congress and to which this Act would apply. (B) Membership of the senate advisory group on enforcement In each Congress, the Senate Advisory Group on Enforcement shall be comprised of the following Members of the Senate: (i) The chairman and ranking minority member of the Committee on Finance and every member of the Subcommittee on International Trade, Customs, and Global Competitiveness of such committee. (ii) The chairman and ranking minority member, or their designees, of the committees of the Senate that would have, under the Rules of the Senate, jurisdiction over provisions of law affected by trade enforcement at any time during that Congress and to which this Act would apply. (C) Consultation and advice The congressional advisory groups on enforcement shall consult with and provide advice to the Trade Representative regarding the formulation and implementation of specific objectives, strategies, and positions with respect to enforcing the provisions of existing trade agreements to which the United States is a party. (D) Chair The House Advisory Group on Enforcement shall be chaired by the chairman of the Committee on Ways and Means of the House of Representatives, and the Senate Advisory Group on Enforcement shall be chaired by the chairman of the Committee on Finance of the Senate. (3) Meetings (A) Quarterly meetings The President shall meet with the congressional advisory groups on enforcement at least four times in each calendar year. (B) Request for meeting Upon the request of a majority of the members of either of the congressional advisory groups on enforcement, the President shall meet with that group. . (b) Procedural disapproval resolution Section 106(b)(1)(B)(ii) of the Bipartisan Congressional Trade Priorities and Accountability Act of 2015 ( 19 U.S.C. 4205(b)(1)(B)(ii) (1) in subclause (III), by striking or (2) by redesignating subclause (IV) as subclause (V); and (3) by inserting after subclause (III) the following new subclause: (IV) the President has not met with the House Advisory Group on Enforcement or the Senate Advisory Group on Enforcement, pursuant to section 104(d)(3), with respect to the enforcement of existing trade agreements to which the United States is a party; or .

Summary: Jobs and Trade Competitiveness Act This bill establishes: (1) an Office of the Congressional Trade Enforcer; (2) an Office of Market Access Assistance; (3) a Trade Enforcement Division within the Office of the U.S. Trade Representative (USTR), headed by a Deputy U.S. Trade Representative for Trade Enforcement; (4) the Office of Trade Assistance for Small Business; (5) the Chief Manufacturing Negotiator; and (6) the Congressional Advisory Commission on WTO Dispute Settlement to provide advice to Congress on the operation of the dispute settlement system of the World Trade Organization. The bill amends the Tariff Act of 1930 regarding: (1) the imposition of countervailing duties to address subsidies relating to fundamentally undervalued currencies; and (2) the establishment of procedures for the protection of business proprietary information from public disclosure, with respect to the investigation of claims of evasion of antidumping and countervailing duty orders. The bill amends the Internal Revenue Code to provide a tax credit for insourcing expenses and to deny a deduction for outsourcing expenses. The USTR shall identify those foreign country trade practices that cause negative environmental impacts on human, animal, or plant life or health, or exhaustible natural resources in the United States, the foreign country, a third country, or internationally, and periodically report on such practices. The Government Accountability Office shall report assessing progress in: (1) achieving compliance by other countries with commitments made under specified international fora, and (2) ensuring that goods made with child labor do not enter the customs territory of the United States.