I
104TH CONGRESS
1ST SESSION
H. R. 2651
To assess the impact of the NAFTA, to require further negotiation of certain
provisions of the NAFTA, and to provide for the withdrawal from the
NAFTA unless certain conditions are met.
IN THE HOUSE OF REPRESENTATIVES
NOVEMBER 16, 1995
Ms. KAPTUR (for herself, Mr. HUNTER, Mr. DEFAZIO, Mrs. CHENOWETH,
Mr. SANDERS, Mr. TRAFICANT, Mr. LIPINSKI, Mr. OBEY, Mr. PALLONE,
Ms. VELA´ZQUEZ, Mr. BROWN of Ohio, Mr. EVANS, Mr. DELLUMS, Mr.
FUNDERBURK, Mr. KLINK, Mr. BARCIA of Michigan, Ms. MCKINNEY,
Mr. HINCHEY, Mr. STOKES, Mr. BARR, Mr. WAMP, Mrs. MINK of Ha-
waii, and Mr. CONYERS) introduced the following bill; which was referred
to the Committee on Ways and Means
A BILL
To assess the impact of the NAFTA, to require further
negotiation of certain provisions of the NAFTA, and
to provide for the withdrawal from the NAFTA unless
certain conditions are met.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘NAFTA Accountability
Act’’.
(3) FAIR AGRICULTURAL TRADE.—One of the
purposes of the NAFTA is to reduce distortions to
trade. In addition, the NAFTA is supposed to pro-
mote conditions of fair competition and to establish
mutually advantageous rules governing trade. How-
ever, since the NAFTA, there has been a rapid esca-
lation of one-way trade of Canadian grain exports of
wheat, durum wheat, and barley to the United
States, disrupting markets and marketing channels.
Surges in the importation of certain Mexican fruits
and vegetables threaten domestic production and the
importation of livestock and meat products from the
NAFTA Parties has exacerbated the severe problems
facing United States livestock producers.
(4) JOBS, WAGES, AND LIVING STANDARDS.—
One of the purposes of the NAFTA is to ‘‘create
new employment opportunities and improve working
conditions and living standards’’ in the respective
territories of the NAFTA Parties. Instead, there has
been a substantial loss of over 300,000 high-paying
jobs in the United States. A survey of United States
companies conducted 20 months after the implemen-
tation of the NAFTA found that 90 percent of the
companies that had anticipated an increased number
of jobs from the NAFTA have, in fact, not increased
employment since the NAFTA was implemented. In
the first year of the NAFTA’s implementation, Unit-
ed States workers had the sharpest drop of real
hourly wages on record. More than 2,000,000 work-
ers have become unemployed in Mexico since the im-
plementation of the NAFTA and real wages of Mexi-
can workers have been slashed 50 percent. In addi-
tion to the loss of purchasing power, there has been
an erosion in the standards of living in the United
States, Canada, and Mexico.
(5) MANUFACTURING BASE.—One of the pur-
poses of the NAFTA is to enhance the competitive-
ness of firms in the global market. However, rather
than increase the ability of the manufacturing sector
in the United States to compete in the world mar-
ket, the NAFTA has facilitated the movement of
United States manufacturing facilities and jobs to
Mexico. The NAFTA has contributed to a net loss
of 227,000 manufacturing jobs in the United States
during the last 7 months and an unprecedented
flood of imports of manufactured goods into the
United States.
(6) HEALTH AND ENVIRONMENT.—Other pur-
poses of the NAFTA are ‘‘to safeguard the public
welfare’’ and ‘‘to strengthen the development and
enforcement of environmental laws and regulations’’.
Yet, since the implementation of the NAFTA, the
public welfare has been undermined by increased im-
ports of food products that do not meet United
States health standards. In addition, the NAFTA
has accelerated the relocation of United States man-
ufacturing facilities to the United States-Mexico bor-
der zone, where hundreds of new manufacturing
plants have been added. Without adequate environ-
mental safeguards, the uncontrolled industrial and
population growth in the border zone has aggravated
pollution and health hazards, increasing the inci-
dence of infectious diseases and human exposure to
toxins.
(7) ILLEGAL DRUGS.—Rather than safeguard-
ing the public welfare, the NAFTA has allowed the
increased flow of illegal drugs and controlled sub-
stances into the United States from Mexico. More
than half of all cocaine and marijuana illegally en-
tering the United States now comes through Mexico,
with an increasing portion carried by trucks which
undergo more limited inspection under the NAFTA.
(8) PROTECT RIGHTS.—The promotion of sus-
tainable development as well as the protection and
enhancement of basic rights are stated objectives of
the NAFTA. As envisioned, the NAFTA is to in-
crease economic opportunity together with expansion
of political freedoms and human rights. Yet these
objectives are not being fulfilled, especially in Mex-
ico, where some citizens continue to experience in-
fringements of such rights and freedoms.
(9) NAFTA SHOULD NOT BE EXPANDED.—The
Congress approved the NAFTA in order to achieve
economic, social, and environmental benefits for the
people of the United States. Based on currently
available information, the goals and objectives of the
NAFTA are not being achieved. Therefore, the
NAFTA should not be expanded to include any
other country.
(10) NAFTA TO BE RENEGOTIATED AND BEN-
EFITS
CERTIFIED.—Based on the experience with
the NAFTA since its implementation, it has become
evident that further negotiation is required to re-
solve fundamental inadequacies within the NAFTA
with respect to trade balances, currency differentials,
and agricultural provisions. If the NAFTA is to con-
tinue, responsible public officials must be able to
certify specific measures of economic, social, and en-
vironmental progress. Otherwise Congress has no
choice but to withdraw its approval of the NAFTA.
SEC. 3. CONDITIONS FOR CONTINUED PARTICIPATION IN
THE NAFTA.
(a) IN GENERAL.—
(1) WITHDRAWAL
OF
APPROVAL.—Notwith-
standing any other provision of law, unless each of
the conditions described in paragraph (2) is met—
(A) the approval of the NAFTA by the
Congress provided for in section 101(a) of the
North American Free Trade Agreement Imple-
mentation Act shall cease to be effective on Oc-
tober 1, 1997, and
(B) not later than April 1, 1997, the
President shall provide written notice of with-
drawal to the Governments of Canada and Mex-
ico in accordance with Article 2205 of the
NAFTA.
(2) CONDITIONS FOR CONTINUING PARTICIPA-
TION IN NAFTA.—The conditions described in this
paragraph are that before December 31, 1996—
(A) the President—
(i) renegotiate the terms of the
NAFTA in accordance with paragraphs
(1), (2), and (3) of subsection (b), and
(ii) provide the certification to the
Congress described in subsection (b)(8),
(B) the Secretary of Labor provide the cer-
tification described in subsection (b)(4),
(C) the Secretary of Commerce provide the
certification described in subsection (b)(5),
(D) the Secretary of Agriculture and the
Administrator of the Food and Drug Adminis-
tration provide the certification described in
subsection (b)(6)(A),
(E) the Administrator of the Environ-
mental Protection Agency submit the certifi-
cation and report described in subsection
(b)(6)(B), and
(F) the Attorney General of the United
States provide the certification described in
subsection (b)(7).
(b) AREAS
OF
RENEGOTIATION
AND
CERTIFI-
CATION.—The areas of renegotiation and certification de-
scribed in this subsection are as follows:
(1) RENEGOTIATE
THE
NAFTA
TO
CORRECT
TRADE DEFICITS.—The President is authorized and
directed to confer with the Governments of Canada
and Mexico and to renegotiate the terms of the
NAFTA to provide for implementation of emergency
adjustments of tariffs, quotas, and other measures
to stabilize the flow of trade among the NAFTA
Parties when the United States has an annual defi-
cit in trade of goods and services with another
NAFTA Party that exceeds 10 percent of United
States exports to that Party.
(2) RENEGOTIATE
THE
NAFTA
TO
CORRECT
CURRENCY DISTORTIONS.—The President is author-
ized and directed to confer with the Governments of
Canada and Mexico and to renegotiate the terms of
the NAFTA to provide for the implementation of
emergency adjustments of tariffs, quotas, and other
measures to mitigate the adverse effects of rapid or
substantial changes in exchange rates between the
United States dollar and the currency of another
NAFTA Party.
(3) RENEGOTIATE THE NAFTA TO CORRECT AG-
RICULTURAL PROVISIONS.—The President is author-
ized and directed to confer with the Governments of
Canada and Mexico and to renegotiate the terms of
the NAFTA to provide for the implementation of
emergency tariffs, quotas, and other measures to
bring the levels of wheat, durum wheat, and barley
imported from Canada to levels that are comparable
to the levels of these products imported during the
10-year period before the date the NAFTA entered
into force with respect to the United States. The
President is further authorized and directed to re-
negotiate the NAFTA to establish and strengthen
provisions to prevent imports of agricultural com-
modities from any NAFTA Party from unfairly dis-
placing United States production and to provide im-
proved mechanisms for relief for United States pro-
ducers that are adversely impacted by such imports.
(4) CERTIFICATION
OF
GAINS
IN
UNITED
STATES JOBS AND LIVING STANDARDS.—If the Sec-
retary of Labor, after consultation with appropriate
government agencies and citizen organizations, de-
termines that—
(A) the number of jobs resulting from in-
creased exports of United States manufactured
goods to other NAFTA Parties exceeds the
number of jobs lost because of imports of man-
ufactured goods from other NAFTA Parties
since January 1, 1994, and
(B) the purchasing power of wage-earners
in the United States has increased since Janu-
ary 1, 1994,
the Secretary shall so certify to the Congress.
(5) CERTIFICATION OF INCREASED DOMESTIC
MANUFACTURING.—If the Secretary of Commerce,
after consultation with the appropriate government
gress. In making this determination, all foods
and food products, including fruits, vegetables,
grains, oilseeds, and meats, both fresh and
processed, shall be reviewed. Special attention
shall be given to foods which have had a history
of violations.
(B) BORDER
AREA
POLLUTION.—If the
Administrator of the Environmental Protection
Agency determines that conditions affecting
public health in the United States-Mexico bor-
der zone have not worsened since January 1,
1994, the Administrator shall so certify to the
Congress. In addition, the Administrator, in
consultation with the Secretariat for the
NAFTA Commission on Environmental Co-
operation, shall report to the Congress on the
outcomes of the Administration’s investigations
on pollution and health hazards in and around
the United States-Mexico border zone since the
implementation of the NAFTA. The report
shall include—
(i) a description and status report of
all industrial site cleanup and environ-
mental improvement projects begun in the
border zone since January 1, 1994;
(ii) information available from local,
State, and Federal health agencies reflect-
ing the incidence since January 1, 1990, in
and around the border zone of hepatitis,
neural stem birth defects, lupus, chronic
adolescent 
diarrhea, 
tuberculosis,
nonneural birth defects, cholera, botulism,
and other disorders commonly related to
industrial pollution, inadequate infrastruc-
tures, and hazardous waste; and
(iii) information on the incidence of
air and water pollution since January 1,
1990, and the causes, levels, and types of
pollution which have occurred.
(7) CERTIFICATION
RELATING
TO
ILLEGAL
DRUGS.—If the Attorney General of the United
States determines, after a review by the Drug En-
forcement Administration and consultation with ap-
propriate government agencies and citizen organiza-
tions, that increased imports from the NAFTA Par-
ties are not resulting in an increase in illegal drugs
or other controlled substances from Mexico or Can-
ada, the Attorney General shall so certify to the
Congress. The Attorney General through the Drug
Enforcement Administration shall conduct a thor-
ough review and report to the Congress regarding
the flow of illegal drugs from Mexico and Canada
and the relationship of such flow to trade of other
commodities and services with the NAFTA Parties.
(8) CERTIFICATION RELATING TO DEMOCRACY
AND
HUMAN
FREEDOMS.—If the President, after
consultation with appropriate government agencies,
international organizations, and citizen organiza-
tions, determines that the Government of Mexico—
(A) is elected in free and fair elections,
(B) protects the rights of its citizens to or-
ganize into political parties,
(C) protects the rights of its citizens to
free speech and the right of the news media to
operate without fear of government control or
reprisal, and
(D) protects the rights of its citizens to as-
semble and to organize associations to advance
human rights and economic opportunities,
the President shall so certify to the Congress.
SEC. 4. CONSULTATION WITH CONGRESS.
The President shall consult regularly with the Con-
gress regarding the negotiations described in section 3(b)
(1), (2), and (3). The United States Trade Representative
shall consult with the appropriate committees of Congress
in the development of any technical and conforming
amendments that may be required to carry out the provi-
sions of this Act.
SEC. 5. NO EXPANSION OF NAFTA.
Until such time as the conditions described in section
3(b) are met, it is the sense of the Congress that the Presi-
dent should not engage in negotiations to expand the
NAFTA to include other countries and that fast-track au-
thority should not be renewed with respect to the approval
of any such expansion of the NAFTA.
SEC. 6. DEFINITIONS.
As used in this Act:
(1) NAFTA.—The term ‘‘NAFTA’’ means the
North American Free Trade Agreement entered into
between the United States, Canada, and Mexico on
December 17, 1992.
(2) NAFTA 
PARTY.—The term ‘‘NAFTA
Party’’ means the United States, Canada, or Mexico.
(3) UNITED STATES-MEXICO BORDER ZONE.—
The term ‘‘United States-Mexico border zone’’
means the area that comprises the 12-mile zone on
the Mexican side of the United States-Mexico border
and the counties within any State of the United
States that are contiguous with Mexico.
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