IB
Union Calendar No. 152
107TH CONGRESS
1ST SESSION
H. R. 3005
[Report No. 107–249, Part I]
To extend trade authorities procedures with respect to reciprocal trade
agreements.
IN THE HOUSE OF REPRESENTATIVES
OCTOBER 3, 2001
Mr. THOMAS (for himself, Mr. CRANE, Mr. DREIER, Mr. JEFFERSON, Mr.
TANNER, and Mr. DOOLEY of California) introduced the following bill;
which was referred to the Committee on Ways and Means, and in addi-
tion to the Committee on Rules, for a period to be subsequently deter-
mined by the Speaker, in each case for consideration of such provisions
as fall within the jurisdiction of the committee concerned
OCTOBER 16, 2001
Reported from the Committee on Ways and Means with an amendment
[Strike out all after the enacting clause and insert the part printed in italic]
OCTOBER 16, 2001
Referral to the Committee on Rules extended for a period ending not later
than October 17, 2001
OCTOBER 17, 2001
Committee on Rules discharged; committed to the Committee of the Whole
House on the State of the Union and ordered to be printed
[For text of introduced bill, see copy of bill as introduced on October 3, 2001]
A BILL
To extend trade authorities procedures with respect to
reciprocal trade agreements.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE AND FINDINGS.
(a) SHORT TITLE.—This Act may be cited as the ‘‘Bi-
partisan Trade Promotion Authority Act of 2001’’.
(b) FINDINGS.—The Congress makes the following
findings:
(1) The expansion of international trade is vital
to the national security of the United States. Trade
is critical to the economic growth and strength of the
United States and to its leadership in the world. Sta-
ble trading relationships promote security and pros-
perity. Trade agreements today serve the same pur-
poses that security pacts played during the Cold War,
binding nations together through a series of mutual
rights and obligations. Leadership by the United
States in international trade fosters open markets, de-
mocracy, and peace throughout the world.
(2) The national security of the United States
depends on its economic security, which in turn is
founded upon a vibrant and growing industrial base.
Trade expansion has been the engine of economic
growth. Trade agreements maximize opportunities for
the critical sectors and building blocks of the economy
of the United States, such as information technology,
telecommunications and other leading technologies,
basic industries, capital equipment, medical equip-
ment, services, agriculture, environmental technology,
and intellectual property. Trade will create new op-
portunities for the United States and preserve the un-
paralleled strength of the United States in economic,
political, and military affairs. The United States, se-
cured by expanding trade and economic opportuni-
ties, will meet the challenges of the twenty-first cen-
tury.
SEC. 2. TRADE NEGOTIATING OBJECTIVES.
(a) OVERALL TRADE NEGOTIATING OBJECTIVES.—The
overall trade negotiating objectives of the United States for
agreements subject to the provisions of section 3 are—
(1) to obtain more open, equitable, and recip-
rocal market access;
(2) to obtain the reduction or elimination of bar-
riers and distortions that are directly related to trade
and that decrease market opportunities for United
States exports or otherwise distort United States
trade;
(3) to further strengthen the system of inter-
national trading disciplines and procedures, includ-
ing dispute settlement;
(4) to foster economic growth, raise living stand-
ards, and promote full employment in the United
States and to enhance the global economy;
(5) to ensure that trade and environmental poli-
cies are mutually supportive and to seek to protect
and preserve the environment and enhance the inter-
national means of doing so, while optimizing the use
of the world’s resources; and
(6) to promote respect for worker rights and the
rights of children consistent with core labor standards
of the International Labor Organization (as defined
in section 10(2)) and an understanding of the rela-
tionship between trade and worker rights.
(b) PRINCIPAL TRADE NEGOTIATING OBJECTIVES.—
(1) TRADE BARRIERS AND DISTORTIONS.—The
principal negotiating objectives of the United States
regarding trade barriers and other trade distortions
are—
(A) to expand competitive market opportu-
nities for United States exports and to obtain
(B) freeing the transfer of funds relating to
investments;
(C) reducing or eliminating performance re-
quirements, forced technology transfers, and
other unreasonable barriers to the establishment
and operation of investments;
(D) seeking to establish standards for expro-
priation and compensation for expropriation,
consistent with United States legal principles
and practice;
(E) providing meaningful procedures for re-
solving investment disputes; and
(F) seeking to improve mechanisms used to
resolve disputes between an investor and a gov-
ernment through—
(i) mechanisms to eliminate frivolous
claims;
(ii) procedures to ensure the efficient
selection of arbitrators and the expeditious
disposition of claims; and
(iii) procedures to increase trans-
parency in investment disputes.
(4) INTELLECTUAL
PROPERTY.—The principal
negotiating objectives of the United States regarding
trade-related intellectual property are—
(A) to further promote adequate and effec-
tive protection of intellectual property rights, in-
cluding through—
(i)(I) ensuring accelerated and full im-
plementation of the Agreement on Trade-Re-
lated Aspects of Intellectual Property Rights
referred to in section 101(d)(15) of the Uru-
guay Round Agreements Act (19 U.S.C.
3511(d)(15)), particularly with respect to
meeting enforcement obligations under that
agreement; and
(II) ensuring that the provisions of
any multilateral or bilateral trade agree-
ment governing intellectual property rights
that is entered into by the United States re-
flect a standard of protection similar to
that found in United States law;
(ii) providing strong protection for
new and emerging technologies and new
methods of transmitting and distributing
products embodying intellectual property;
(iii) preventing or eliminating dis-
crimination with respect to matters affect-
ing the availability, acquisition, scope,
maintenance, use, and enforcement of intel-
lectual property rights;
(iv) ensuring that standards of protec-
tion and enforcement keep pace with techno-
logical developments, and in particular en-
suring that rightholders have the legal and
technological means to control the use of
their works through the Internet and other
global communication media, and to pre-
vent the unauthorized use of their works;
and
(v) providing strong enforcement of in-
tellectual property rights, including through
accessible, expeditious, and effective civil,
administrative, and criminal enforcement
mechanisms; and
(B) to secure fair, equitable, and non-
discriminatory market access opportunities for
United States persons that rely upon intellectual
property protection.
(5) TRANSPARENCY.—The principal negotiating
objective of the United States with respect to trans-
parency is to obtain wider and broader application
of the principle of transparency through—
(A) increased and more timely public access
to information regarding trade issues and the ac-
tivities of international trade institutions;
(B) increased openness at the WTO and
other international trade fora by increasing pub-
lic access to appropriate meetings, proceedings,
and submissions, including with regard to dis-
pute settlement and investment; and
(C) increased and more timely public access
to all notifications and supporting documenta-
tion submitted by parties to the WTO.
(6) ANTI-CORRUPTION.—The principal negoti-
ating objectives of the United States with respect to
the use of money or other things of value to influence
acts, decisions, or omissions of foreign governments or
officials or to secure any improper advantage in a
manner affecting trade are—
(A) to obtain high standards and appro-
priate domestic enforcement mechanisms appli-
cable to persons from all countries participating
in the applicable trade agreement that prohibit
such attempts to influence acts, decisions, or
omissions of foreign governments; and
(B) to ensure that such standards do not
place United States persons at a competitive dis-
advantage in international trade.
(7) IMPROVEMENT OF THE WTO AND MULTILAT-
ERAL
TRADE
AGREEMENTS.—The principal negoti-
ating objectives of the United States regarding the im-
provement of the World Trade Organization, the Uru-
guay Round Agreements, and other multilateral and
bilateral trade agreements are—
(A) to achieve full implementation and ex-
tend the coverage of the World Trade Organiza-
tion and such agreements to products, sectors,
and conditions of trade not adequately covered;
and
(B) to expand country participation in and
enhancement of the Information Technology
Agreement and other trade agreements.
(8) REGULATORY PRACTICES.—The principal ne-
gotiating objectives of the United States regarding the
use of government regulation or other practices by for-
eign governments to provide a competitive advantage
to their domestic producers, service providers, or in-
vestors and thereby reduce market access for United
States goods, services, and investments are—
(A) to achieve increased transparency and
opportunity for the participation of affected par-
ties in the development of regulations;
(B) to require that proposed regulations be
based on sound science, cost-benefit analysis, risk
assessment, or other objective evidence;
(C) to establish consultative mechanisms
among parties to trade agreements to promote
increased transparency in developing guidelines,
rules, regulations, and laws for government pro-
curement and other regulatory regimes; and
(D) to achieve the elimination of govern-
ment measures such as price controls and ref-
erence pricing which deny full market access for
United States products.
(9) ELECTRONIC COMMERCE.—The principal ne-
gotiating objectives of the United States with respect
to electronic commerce are—
(A) to ensure that current obligations, rules,
disciplines, and commitments under the World
Trade Organization apply to electronic com-
merce;
(B) to ensure that—
(i) electronically delivered goods and
services receive no less favorable treatment
under trade rules and commitments than
like products delivered in physical form;
and
(ii) the classification of such goods and
services ensures the most liberal trade treat-
ment possible;
(C) to ensure that governments refrain from
implementing trade-related measures that im-
pede electronic commerce;
(D) where legitimate policy objectives re-
quire domestic regulations that affect electronic
commerce, to obtain commitments that any such
regulations are the least restrictive on trade,
nondiscriminatory, and transparent, and pro-
mote an open market environment; and
(E) to extend the moratorium of the World
Trade Organization on duties on electronic
transmissions.
(10) RECIPROCAL TRADE IN AGRICULTURE.—(A)
The principal negotiating objective of the United
States with respect to agriculture is to obtain com-
petitive opportunities for United States exports of ag-
ricultural commodities in foreign markets substan-
tially equivalent to the competitive opportunities af-
forded foreign exports in United States markets and
to achieve fairer and more open conditions of trade
in bulk, specialty crop, and value-added commodities
by—
(i) reducing or eliminating, by a date cer-
tain, tariffs or other charges that decrease mar-
ket opportunities for United States exports—
(I) giving priority to those products
that are subject to significantly higher tar-
iffs or subsidy regimes of major producing
countries; and
(II) providing reasonable adjustment
periods for United States import-sensitive
products, in close consultation with the
Congress on such products before initiating
tariff reduction negotiations;
(ii) reducing tariffs to levels that are the
same as or lower than those in the United States;
(iii) reducing or eliminating subsidies that
decrease market opportunities for United States
exports or unfairly distort agriculture markets to
the detriment of the United States;
(iv) allowing the preservation of programs
that support family farms and rural commu-
nities but do not distort trade;
(v) developing disciplines for domestic sup-
port programs, so that production that is in ex-
cess of domestic food security needs is sold at
world prices;
(vi) eliminating Government policies that
create price-depressing surpluses;
(vii) eliminating state trading enterprises
whenever possible;
(viii) developing, strengthening, and clari-
fying rules and effective dispute settlement mech-
anisms to eliminate practices that unfairly de-
crease United States market access opportunities
or distort agricultural markets to the detriment
of the United States, particularly with respect to
import-sensitive products, including—
(I) unfair or trade-distorting activities
of state trading enterprises and other ad-
ministrative mechanisms, with emphasis on
requiring price transparency in the oper-
ation of state trading enterprises and such
other mechanisms in order to end cross sub-
sidization, price discrimination, and price
undercutting;
(II) unjustified trade restrictions or
commercial requirements, such as labeling,
that affect new technologies, including bio-
technology;
(III) 
unjustified 
sanitary 
or
phytosanitary restrictions, including those
not based on scientific principles in con-
travention of the Uruguay Round Agree-
ments;
(IV) other unjustified technical bar-
riers to trade; and
(V) restrictive rules in the administra-
tion of tariff rate quotas;
(ix) eliminating practices that adversely af-
fect trade in perishable or cyclical products,
while improving import relief mechanisms to
recognize the unique characteristics of perishable
and cyclical agriculture;
(x) ensuring that the use of import relief
mechanisms for perishable and cyclical agri-
culture are as accessible and timely to growers in
the United States as those mechanisms that are
used by other countries;
(xi) taking into account whether a party to
the negotiations has failed to adhere to the provi-
sions of already existing trade agreements with
the United States or has circumvented obliga-
tions under those agreements;
(xii) taking into account whether a product
is subject to market distortions by reason of a
failure of a major producing country to adhere
to the provisions of already existing trade agree-
ments with the United States or by the cir-
cumvention by that country of its obligations
under those agreements;
(xiii) otherwise ensuring that countries that
accede to the World Trade Organization have
made meaningful market liberalization commit-
ments in agriculture;
(xiv) taking into account the impact that
agreements covering agriculture to which the
United States is a party, including the North
American Free Trade Agreement, have on the
United States agricultural industry; and
(xv) maintaining bona fide food assistance
programs and preserving United States market
development and export credit programs.
(B)(i) Before commencing negotiations with re-
spect to agriculture, the United States Trade Rep-
resentative, in consultation with the Congress, shall
seek to develop a position on the treatment of seasonal
and perishable agricultural products to be employed
in the negotiations in order to develop an inter-
national consensus on the treatment of seasonal or
perishable agricultural products in investigations re-
lating to dumping and safeguards and in any other
relevant area.
(ii) During any negotiations on agricultural
subsidies, the United States Trade Representative
shall seek to establish the common base year for calcu-
lating the Aggregated Measurement of Support (as de-
fined in the Agreement on Agriculture) as the end of
each country’s Uruguay Round implementation pe-
riod, as reported in each country’s Uruguay Round
market access schedule.
(iii) The negotiating objective provided in sub-
paragraph (A) applies with respect to agricultural
matters to be addressed in any trade agreement en-
tered into under section 3(a) or (b), including any
trade agreement entered into under section 3(a) or (b)
that provides for accession to a trade agreement to
which the United States is already a party, such as
the North American Free Trade Agreement and the
United States-Canada Free Trade Agreement.
(11) LABOR AND THE ENVIRONMENT.—The prin-
cipal negotiating objectives of the United States with
respect to labor and the environment are—
(A) to ensure that a party to a trade agree-
ment with the United States does not fail to ef-
fectively enforce its environmental or labor laws,
through a sustained or recurring course of action
or inaction, in a manner affecting trade between
the United States and that party after entry into
force of a trade agreement between those coun-
tries;
(B) to recognize that parties to a trade
agreement retain the right to exercise discretion
with respect to investigatory, prosecutorial, regu-
latory, and compliance matters and to make de-
cisions regarding the allocation of resources to
enforcement with respect to other labor or envi-
ronmental matters determined to have higher
priorities, and to recognize that a country is ef-
fectively enforcing its laws if a course of action
or inaction reflects a reasonable exercise of such
discretion, or results from a bona fide decision
regarding the allocation of resources;
(C) to strengthen the capacity of United
States trading partners to promote respect for
core labor standards (as defined in section
10(2));
(D) to strengthen the capacity of United
States trading partners to protect the environ-
ment through the promotion of sustainable devel-
opment;
(E) to reduce or eliminate government prac-
tices or policies that unduly threaten sustainable
development;
(F) to seek market access, through the elimi-
nation of tariffs and nontariff barriers, for
United States environmental technologies, goods,
and services; and
(G) to ensure that labor, environmental,
health, or safety policies and practices of the
parties to trade agreements with the United
States do not arbitrarily or unjustifiably dis-
criminate against United States exports or serve
as disguised barriers to trade.
(12) DISPUTE
SETTLEMENT
AND
ENFORCE-
MENT.—The principal negotiating objectives of the
United States with respect to dispute settlement and
enforcement of trade agreements are—
(A) to seek provisions in trade agreements
providing for resolution of disputes between gov-
ernments under those trade agreements in an ef-
fective, timely, transparent, equitable, and rea-
soned manner, requiring determinations based
on facts and the principles of the agreements,
with the goal of increasing compliance with the
agreements;
(B) to seek to strengthen the capacity of the
Trade Policy Review Mechanism of the World
Trade Organization to review compliance with
commitments;
(C) to seek provisions encouraging the early
identification and settlement of disputes through
consultation;
(D) to seek provisions to encourage the pro-
vision of trade-expanding compensation if a
party to a dispute under the agreement does not
come into compliance with its obligations under
the agreement;
(E) to seek provisions to impose a penalty
upon a party to a dispute under the agreement
that—
(i) encourages compliance with the ob-
ligations of the agreement;
(ii) is appropriate to the parties, na-
ture, subject matter, and scope of the viola-
tion; and
(iii) has the aim of not adversely af-
fecting parties or interests not party to the
dispute while maintaining the effectiveness
of the enforcement mechanism; and
(F) to seek provisions that treat United
States principal negotiating objectives equally
with respect to—
(i) the ability to resort to dispute set-
tlement under the applicable agreement;
(ii) the availability of equivalent dis-
pute settlement procedures; and
(iii) the availability of equivalent rem-
edies.
(13) 
WTO 
EXTENDED
NEGOTIATIONS.—The
principal negotiating objectives of the United States
regarding trade in civil aircraft are those set forth in
section 135(c) of the Uruguay Round Agreements Act
(19 U.S.C. 3355(c)) and regarding rules of origin are
the conclusion of an agreement described in section
132 of that Act (19 U.S.C. 3552).
(c) PROMOTION OF CERTAIN PRIORITIES.—In order to
address and maintain United States competitiveness in the
global economy, the President shall—
(1) seek greater cooperation between the WTO
and the ILO;
(2) seek to establish consultative mechanisms
among parties to trade agreements to strengthen the
capacity of United States trading partners to promote
respect for core labor standards (as defined in section
10(2)), and report to the Committee on Ways and
Means of the House of Representatives and the Com-
mittee on Finance of the Senate on the content and
operation of such mechanisms;
(3) seek to establish consultative mechanisms
among parties to trade agreements to strengthen the
capacity of United States trading partners to develop
and implement standards for the protection of the en-
vironment and human health based on sound science,
and report to the Committee on Ways and Means of
the House of Representatives and the Committee on
Finance of the Senate on the content and operation
of such mechanisms;
(4) conduct environmental reviews of future
trade and investment agreements, consistent with Ex-
ecutive Order 13141 of November 16, 1999 and its rel-
evant guidelines, and report to the Committee on
Ways and Means of the House of Representatives and
the Committee on Finance of the Senate on such re-
views;
(5) review the impact of future trade agreements
on United States employment, modeled after Execu-
tive Order 13141, and report to the Committee on
Ways and Means of the House of Representatives and
the Committee on Finance of the Senate on such re-
view;
(6) take into account other legitimate United
States domestic objectives including, but not limited
to, the protection of legitimate health or safety, essen-
tial security, and consumer interests and the law and
regulations related thereto;
(7) have the Secretary of Labor consult with any
country seeking a trade agreement with the United
States concerning that country’s labor laws and pro-
vide technical assistance to that country if needed;
(8) with respect to any trade agreement which
the President seeks to implement under trade authori-
ties procedures, submit to the Congress a report de-
scribing the extent to which the country or countries
that are parties to the agreement have in effect laws
governing exploitative child labor;
(9) preserve the ability of the United States to
enforce rigorously its trade laws, including the anti-
dumping and countervailing duty laws, and avoid
agreements which lessen the effectiveness of domestic
and international disciplines on unfair trade, espe-
cially dumping and subsidies, in order to ensure that
United States workers, agricultural producers, and
firms can compete fully on fair terms and enjoy the
benefits of reciprocal trade concessions;
(10) continue to promote consideration of multi-
lateral environmental agreements and consult with
parties to such agreements regarding the consistency
of any such agreement that includes trade measures
with existing environmental exceptions under Article
XX of the GATT 1994; and
(11) report to the Committee on Ways and
Means of the House of Representatives and the Com-
mittee on Finance of the Senate, not later than 12
months after the imposition of a penalty or remedy
by the United States permitted by a trade agreement
to which this Act applies, on the effectiveness of the
penalty or remedy applied under United States law
in enforcing United States rights under the trade
agreement.
The report under paragraph (11) shall address whether the
penalty or remedy was effective in changing the behavior
of the targeted party and whether the penalty or remedy
had any adverse impact on parties or interests not party
to the dispute.
(d) CONSULTATIONS.—
(1) CONSULTATIONS WITH CONGRESSIONAL AD-
VISERS.—In the course of negotiations conducted
under this Act, the United States Trade Representa-
tive shall consult closely and on a timely basis with,
and keep fully apprised of the negotiations, the Con-
gressional Oversight Group convened under section 7
and all committees of the House of Representatives
and the Senate with jurisdiction over laws that would
be affected by a trade agreement resulting from the
negotiations.
(2) CONSULTATION
BEFORE
AGREEMENT
INI-
TIALED.—In the course of negotiations conducted
under this Act, the United States Trade Representa-
tive shall—
(A) consult closely and on a timely basis
(including immediately before initialing an
agreement) with, and keep fully apprised of the
negotiations, the congressional advisers for trade
policy and negotiations appointed under section
161 of the Trade Act of 1974 (19 U.S.C. 2211),
the Committee on Ways and Means of the House
of Representatives, the Committee on Finance of
the Senate, and the Congressional Oversight
Group convened under section 7; and
(B) with regard to any negotiations and
agreement relating to agricultural trade, also
consult closely and on a timely basis (including
immediately before initialing an agreement)
with, and keep fully apprised of the negotiations,
the Committee on Agriculture of the House of
Representatives and the Committee on Agri-
culture, Nutrition, and Forestry of the Senate.
(e) ADHERENCE TO OBLIGATIONS UNDER URUGUAY
ROUND AGREEMENTS.—In determining whether to enter
into negotiations with a particular country, the President
shall take into account the extent to which that country has
implemented, or has accelerated the implementation of, its
obligations under the Uruguay Round Agreements.
SEC. 3. TRADE AGREEMENTS AUTHORITY.
(a) AGREEMENTS REGARDING TARIFF BARRIERS.—
(1) IN GENERAL.—Whenever the President deter-
mines that one or more existing duties or other im-
port restrictions of any foreign country or the United
States are unduly burdening and restricting the for-
eign trade of the United States and that the purposes,
policies, priorities, and objectives of this Act will be
promoted thereby, the President—
(A) may enter into trade agreements with
foreign countries before—
(i) June 1, 2005; or
(ii) June 1, 2007, if trade authorities
procedures are extended under subsection
(c); and
(B) may, subject to paragraphs (2) and (3),
proclaim—
(i) such modification or continuance of
any existing duty,
(ii) such continuance of existing duty-
free or excise treatment, or
(iii) such additional duties,
as the President determines to be required or ap-
propriate to carry out any such trade agreement.
The President shall notify the Congress of the Presi-
dent’s intention to enter into an agreement under this
subsection.
(2) LIMITATIONS.—No proclamation may be
made under paragraph (1) that—
(A) reduces any rate of duty (other than a
rate of duty that does not exceed 5 percent ad va-
lorem on the date of the enactment of this Act)
to a rate of duty which is less than 50 percent
of the rate of such duty that applies on such date
of enactment; or
(B) increases any rate of duty above the
rate that applied on the date of the enactment of
this Act.
(3) AGGREGATE REDUCTION; EXEMPTION FROM
STAGING.—
(A) AGGREGATE
REDUCTION.—Except as
provided in subparagraph (B), the aggregate re-
duction in the rate of duty on any article which
is in effect on any day pursuant to a trade
agreement entered into under paragraph (1)
shall not exceed the aggregate reduction which
would have been in effect on such day if—
(i) a reduction of 3 percent ad valorem
or a reduction of one-tenth of the total re-
duction, whichever is greater, had taken ef-
fect on the effective date of the first reduc-
tion proclaimed under paragraph (1) to
carry out such agreement with respect to
such article; and
(ii) a reduction equal to the amount
applicable under clause (i) had taken effect
at 1-year intervals after the effective date of
such first reduction.
(B) EXEMPTION FROM STAGING.—No stag-
ing is required under subparagraph (A) with re-
spect to a duty reduction that is proclaimed
under paragraph (1) for an article of a kind
that is not produced in the United States. The
United States International Trade Commission
shall advise the President of the identity of arti-
cles that may be exempted from staging under
this subparagraph.
(4) ROUNDING.—If the President determines that
such action will simplify the computation of reduc-
tions under paragraph (3), the President may round
an annual reduction by an amount equal to the lesser
of—
(A) the difference between the reduction
without regard to this paragraph and the next
lower whole number; or
(B) one-half of 1 percent ad valorem.
(5) OTHER LIMITATIONS.—A rate of duty reduc-
tion that may not be proclaimed by reason of para-
graph (2) may take effect only if a provision author-
izing such reduction is included within an imple-
menting bill provided for under section 5 and that
bill is enacted into law.
(6) OTHER
TARIFF
MODIFICATIONS.—Notwith-
standing paragraphs (1)(B) and (2) through (5), and
subject to the consultation and layover requirements
of section 115 of the Uruguay Round Agreements Act,
the President may proclaim the modification of any
duty or staged rate reduction of any duty set forth
in Schedule XX, as defined in section 2(5) of that
Act, if the United States agrees to such modification
or staged rate reduction in a negotiation for the re-
ciprocal elimination or harmonization of duties under
the auspices of the World Trade Organization.
(7) AUTHORITY UNDER URUGUAY ROUND AGREE-
MENTS ACT NOT AFFECTED.—Nothing in this sub-
section shall limit the authority provided to the Presi-
dent under section 111(b) of the Uruguay Round
Agreements Act (19 U.S.C. 3521(b)).
(b) AGREEMENTS REGARDING TARIFF AND NONTARIFF
BARRIERS.—
(1) IN GENERAL.—(A) Whenever the President
determines that—
(i) one or more existing duties or any other
import restriction of any foreign country or the
United States or any other barrier to, or other
distortion of, international trade unduly burdens
or restricts the foreign trade of the United States
or adversely affects the United States economy;
or
(ii) the imposition of any such barrier or
distortion is likely to result in such a burden, re-
striction, or effect;
and that the purposes, policies, priorities, and objec-
tives of this Act will be promoted thereby, the Presi-
dent may enter into a trade agreement described in
subparagraph (B) during the period described in sub-
paragraph (C).
(B) The President may enter into a trade agree-
ment under subparagraph (A) with foreign countries
providing for—
(i) the reduction or elimination of a duty,
restriction, barrier, or other distortion described
in subparagraph (A), or
(ii) the prohibition of, or limitation on the
imposition of, such barrier or other distortion.
(C) The President may enter into a trade agree-
ment under this paragraph before—
(i) June 1, 2005; or
(ii) June 1, 2007, if trade authorities proce-
dures are extended under subsection (c).
(2) CONDITIONS.—A trade agreement may be en-
tered into under this subsection only if such agree-
ment makes progress in meeting the applicable objec-
tives described in section 2(a) and (b) and the Presi-
dent satisfies the conditions set forth in section 4.
(3) BILLS QUALIFYING FOR TRADE AUTHORITIES
PROCEDURES.—(A) The provisions of section 151 of
the Trade Act of 1974 (in this Act referred to as
‘‘trade authorities procedures’’) apply to a bill of ei-
ther House of Congress which contains provisions de-
scribed in subparagraph (B) to the same extent as
such section 151 applies to implementing bills under
that section. A bill to which this paragraph applies
shall hereafter in this Act be referred to as an ‘‘imple-
menting bill’’.
(B) The provisions referred to in subparagraph
(A) are—
(i) a provision approving a trade agreement
entered into under this subsection and approving
the statement of administrative action, if any,
proposed to implement such trade agreement;
and
(ii) if changes in existing laws or new stat-
utory authority are required to implement such
trade agreement or agreements, provisions, nec-
essary or appropriate to implement such trade
agreement or agreements, either repealing or
amending existing laws or providing new statu-
tory authority.
(c) EXTENSION DISAPPROVAL PROCESS FOR CONGRES-
SIONAL TRADE AUTHORITIES PROCEDURES.—
(1) IN GENERAL.—Except as provided in section
5(b)—
(A) the trade authorities procedures apply
to implementing bills submitted with respect to
trade agreements entered into under subsection
(b) before July 1, 2005; and
(B) the trade authorities procedures shall be
extended to implementing bills submitted with
respect to trade agreements entered into under
subsection (b) after June 30, 2005, and before
July 1, 2007, if (and only if)—
(i) the President requests such exten-
sion under paragraph (2); and
(ii) neither House of the Congress
adopts an extension disapproval resolution
under paragraph (5) before June 1, 2005.
(2) REPORT
TO
CONGRESS
BY
THE
PRESI-
DENT.—If the President is of the opinion that the
trade authorities procedures should be extended to im-
plementing bills described in paragraph (1)(B), the
President shall submit to the Congress, not later than
March 1, 2005, a written report that contains a re-
quest for such extension, together with—
(A) a description of all trade agreements
that have been negotiated under subsection (b)
and the anticipated schedule for submitting such
agreements to the Congress for approval;
(B) a description of the progress that has
been made in negotiations to achieve the pur-
poses, policies, priorities, and objectives of this
Act, and a statement that such progress justifies
the continuation of negotiations; and
(C) a statement of the reasons why the ex-
tension is needed to complete the negotiations.
(3) REPORT
TO
CONGRESS
BY
THE
ADVISORY
COMMITTEE.—The President shall promptly inform
the Advisory Committee for Trade Policy and Nego-
tiations established under section 135 of the Trade
Act of 1974 (19 U.S.C. 2155) of the President’s deci-
sion to submit a report to the Congress under para-
graph (2). The Advisory Committee shall submit to
the Congress as soon as practicable, but not later than
May 1, 2005, a written report that contains—
(A) its views regarding the progress that
has been made in negotiations to achieve the
purposes, policies, priorities, and objectives of
this Act; and
(B) a statement of its views, and the rea-
sons therefor, regarding whether the extension re-
quested under paragraph (2) should be approved
or disapproved.
(4) STATUS
OF
REPORTS.—The reports sub-
mitted to the Congress under paragraphs (2) and (3),
or any portion of such reports, may be classified to
the extent the President determines appropriate.
(5) EXTENSION
DISAPPROVAL
RESOLUTIONS.—
(A) For purposes of paragraph (1), the term ‘‘exten-
sion disapproval resolution’’ means a resolution of ei-
ther House of the Congress, the sole matter after the
resolving clause of which is as follows: ‘‘That the ll
disapproves the request of the President for the exten-
sion, under section 3(c)(1)(B)(i) of the Bipartisan
Trade Promotion Authority Act of 2001, of the trade
authorities procedures under that Act to any imple-
menting bill submitted with respect to any trade
agreement entered into under section 3(b) of that Act
after June 30, 2005.’’, with the blank space being
filled with the name of the resolving House of the
Congress.
(B) Extension disapproval resolutions—
(i) may be introduced in either House of the
Congress by any member of such House; and
(ii) shall be referred, in the House of Rep-
resentatives, to the Committee on Ways and
Means and, in addition, to the Committee on
Rules.
(C) The provisions of sections 152(d) and (e) of
the Trade Act of 1974 (19 U.S.C. 2192(d) and (e))
(relating to the floor consideration of certain resolu-
tions in the House and Senate) apply to extension
disapproval resolutions.
(D) It is not in order for—
(i) the Senate to consider any extension dis-
approval resolution not reported by the Com-
mittee on Finance;
(ii) the House of Representatives to consider
any extension disapproval resolution not re-
ported by the Committee on Ways and Means
and, in addition, by the Committee on Rules; or
(iii) either House of the Congress to con-
sider an extension disapproval resolution after
June 30, 2005.
(d) COMMENCEMENT OF NEGOTIATIONS.—In order to
contribute to the continued economic expansion of the
United States, the President shall commence negotiations
covering tariff and nontariff barriers affecting any indus-
try, product, or service sector, and expand existing sectoral
agreements to countries that are not parties to those agree-
ments, in cases where the President determines that such
negotiations are feasible and timely and would benefit the
United States. Such sectors include agriculture, commercial
services, intellectual property rights, industrial and capital
goods, government procurement, information technology
products, environmental technology and services, medical
equipment and services, civil aircraft, and infrastructure
products. In so doing, the President shall take into account
all of the principal negotiating objectives set forth in section
2(b).
SEC. 4. CONSULTATIONS AND ASSESSMENT.
(a) NOTICE AND CONSULTATION BEFORE NEGOTIA-
TION.—The President, with respect to any agreement that
is subject to the provisions of section 3(b), shall—
(1) provide, at least 90 calendar days before ini-
tiating negotiations, written notice to the Congress of
the President’s intention to enter into the negotiations
and set forth therein the date the President intends to
initiate such negotiations, the specific United States
objectives for the negotiations, and whether the Presi-
dent intends to seek an agreement, or changes to an
existing agreement; and
(2) before and after submission of the notice, con-
sult regarding the negotiations with the Committee on
Finance of the Senate and the Committee on Ways
and Means of the House of Representatives, such other
committees of the House and Senate as the President
deems appropriate, and the Congressional Oversight
group convened under section 7.
(b) NEGOTIATIONS REGARDING AGRICULTURE.—Be-
fore initiating or continuing negotiations the subject matter
of which is directly related to the subject matter under sec-
tion 2(b)(10)(A)(i) with any country, the President shall
assess whether United States tariffs on agricultural prod-
ucts that were bound under the Uruguay Round Agreements
are lower than the tariffs bound by that country. In addi-
tion, the President shall consider whether the tariff levels
bound and applied throughout the world with respect to im-
ports from the United States are higher than United States
tariffs and whether the negotiation provides an opportunity
to address any such disparity. The President shall consult
with the Committee on Ways and Means and the Committee
on Agriculture of the House of Representatives and the
Committee on Finance and the Committee on Agriculture,
Nutrition, and Forestry of the Senate concerning the results
of the assessment, whether it is appropriate for the United
States to agree to further tariff reductions based on the con-
clusions reached in the assessment, and how all applicable
negotiating objectives will be met.
(c) CONSULTATION WITH CONGRESS BEFORE AGREE-
MENTS ENTERED INTO.—
(1) CONSULTATION.—Before entering into any
trade agreement under section 3(b), the President
shall consult with—
(A) the Committee on Ways and Means of
the House of Representatives and the Committee
on Finance of the Senate;
(B) each other committee of the House and
the Senate, and each joint committee of the Con-
gress, which has jurisdiction over legislation in-
volving subject matters which would be affected
by the trade agreement; and
(C) the Congressional Oversight Group con-
vened under section 7.
(2) SCOPE.—The consultation described in para-
graph (1) shall include consultation with respect to—
(A) the nature of the agreement;
(B) how and to what extent the agreement
will achieve the applicable purposes, policies,
priorities, and objectives of this Act; and
(C) the implementation of the agreement
under section 5, including the general effect of
the agreement on existing laws.
(d) ADVISORY COMMITTEE REPORTS.—The report re-
quired under section 135(e)(1) of the Trade Act of 1974 re-
garding any trade agreement entered into under section
3(a) or (b) of this Act shall be provided to the President,
the Congress, and the United States Trade Representative
not later than 30 days after the date on which the President
notifies the Congress under section 3(a)(1) or 5(a)(1)(A) of
the President’s intention to enter into the agreement.
(e) ITC ASSESSMENT.—
(1) IN GENERAL.—The President, at least 90 cal-
endar days before the day on which the President en-
ters into a trade agreement under section 3(b), shall
provide the International Trade Commission (referred
to in this subsection as ‘‘the Commission’’) with the
details of the agreement as it exists at that time and
request the Commission to prepare and submit an as-
sessment of the agreement as described in paragraph
(2). Between the time the President makes the request
under this paragraph and the time the Commission
submits the assessment, the President shall keep the
Commission current with respect to the details of the
agreement.
(2) ITC ASSESSMENT.—Not later than 90 cal-
endar days after the President enters into the agree-
ment, the Commission shall submit to the President
and the Congress a report assessing the likely impact
of the agreement on the United States economy as a
whole and on specific industry sectors, including the
impact the agreement will have on the gross domestic
product, exports and imports, aggregate employment
and employment opportunities, the production, em-
ployment, and competitive position of industries like-
ly to be significantly affected by the agreement, and
the interests of United States consumers.
(3) REVIEW
OF
EMPIRICAL
LITERATURE.—In
preparing the assessment, the Commission shall re-
view available economic assessments regarding the
agreement, including literature regarding any sub-
stantially equivalent proposed agreement, and shall
provide in its assessment a description of the analyses
used and conclusions drawn in such literature, and a
discussion of areas of consensus and divergence be-
tween the various analyses and conclusions, including
those of the Commission regarding the agreement.
SEC. 5. IMPLEMENTATION OF TRADE AGREEMENTS.
(a) IN GENERAL.—
(1) NOTIFICATION AND SUBMISSION.—Any agree-
ment entered into under section 3(b) shall enter into
force with respect to the United States if (and only
if)—
(A) the President, at least 90 calendar days
before the day on which the President enters into
the trade agreement, notifies the House of Rep-
resentatives and the Senate of the President’s in-
tention to enter into the agreement, and prompt-
ly thereafter publishes notice of such intention in
the Federal Register;
(B) within 60 days after entering into the
agreement, the President submits to the Congress
a description of those changes to existing laws
that the President considers would be required in
order to bring the United States into compliance
with the agreement;
(C) after entering into the agreement, the
President submits to the Congress a copy of the
final legal text of the agreement, together with—
(i) a draft of an implementing bill de-
scribed in section 3(b)(3);
(A) notify the Congress of the negotiations
described in subsection (a), the specific United
States objectives in the negotiations, and whether
the President is seeking a new agreement or
changes to an existing agreement; and
(B) before and after submission of the no-
tice, consult regarding the negotiations with the
committees referred to in section 4(a)(2) and the
Congressional Oversight Group.
SEC. 7. CONGRESSIONAL OVERSIGHT GROUP.
(a) MEMBERS AND FUNCTIONS.—
(1) IN GENERAL.—By not later than 60 days
after the date of the enactment of this Act, and not
later than 30 days after the convening of each Con-
gress, the chairman of the Committee on Ways and
Means of the House of Representatives and the chair-
man of the Committee on Finance of the Senate shall
convene the Congressional Oversight Group.
(2) MEMBERSHIP FROM THE HOUSE.—In each
Congress, the Congressional Oversight Group shall be
comprised of the following Members of the House of
Representatives:
(A) The chairman and ranking member of
the Committee on Ways and Means, and 3 addi-
tional members of such Committee (not more