Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
TITLE I—TRADE AUTHORITIES
PROCEDURES
SEC. 101. SHORT TITLE.
This title may be cited as the ‘‘Reciprocal Trade Agree-
ment Authorities Act of 1997’’.
SEC. 102. 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 103 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; and
(4) to foster economic growth, raise living stand-
ards, and promote full employment in the United
States and to enhance the global economy.
(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
fairer and more open conditions of trade by re-
ducing or eliminating tariff and nontariff bar-
riers and policies and practices of foreign gov-
ernments directly related to trade that decrease
market opportunities for United States exports
or otherwise distort United States trade; and
(B) to obtain reciprocal tariff and nontariff
barrier elimination agreements, with particular
attention to those tariff categories covered in sec-
tion 111(b) of the Uruguay Round Agreements
Act (19 U.S.C. 3521(b)).
(2) TRADE IN SERVICES.—The principal nego-
tiating objective of the United States regarding trade
in services is to reduce or eliminate barriers to inter-
national trade in services, including regulatory and
other barriers that deny national treatment or unrea-
sonably restrict the establishment or operations of
service suppliers.
(3) FOREIGN INVESTMENT.—The principal nego-
tiating objective of the United States regarding for-
eign investment is to reduce or eliminate artificial or
trade-distorting barriers to trade related foreign in-
vestment by—
(A) reducing or eliminating exceptions to
the principle of national treatment;
(B) freeing the transfer of funds relating to
investments;
(C) reducing or eliminating performance re-
quirements 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; and
(E) providing meaningful procedures for re-
solving 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
United States industries whose products are
subject to the lengthiest transition periods
for full compliance by developing countries
with that Agreement, and
(II) ensuring that the provisions of
any multilateral or bilateral trade agree-
ment entered into by the United States pro-
vide protection at least as strong as the pro-
tection afforded by chapter 17 of the North
American Free Trade Agreement and the
annexes thereto;
(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; and
(iv) providing strong enforcement of
intellectual 
property 
rights, 
including
through accessible, expeditious, and effective
civil, administrative, and criminal enforce-
ment 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 broader application of the prin-
ciple of transparency through—
(A) increased and more timely public access
to information regarding trade issues and the ac-
tivities of international trade institutions; and
(B) increased openness of dispute settlement
proceedings, including under the World Trade
Organization.
(6) RECIPROCAL TRADE IN AGRICULTURE.—The
principal negotiating objective of the United States
with respect to agriculture is to obtain competitive
opportunities for United States exports in foreign
markets substantially equivalent to the competitive
opportunities afforded foreign exports in United
States markets and to achieve fairer and more open
conditions of trade in bulk and value-added commod-
ities by—
(A) 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;
(B) reducing or eliminating subsidies that
decrease market opportunities for United States
exports or unfairly distort agriculture markets to
the detriment of the United States;
(C) developing, strengthening, and clarify-
ing rules and effective dispute settlement mecha-
nisms 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;
(ii) unjustified trade restrictions or
commercial requirements affecting new tech-
nologies, including biotechnology;
(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 barriers
to trade; and
(v) restrictive rules in the administra-
tion of tariff rate quotas;
(D) improving import relief mechanisms to
recognize the unique characteristics of perishable
agriculture;
(E) 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;
(F) 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; and
(G) otherwise ensuring that countries that
accede to the World Trade Organization have
made meaningful market liberalization commit-
ments in agriculture.
(7) LABOR, THE
ENVIRONMENT, AND
OTHER
MATTERS.—The principal negotiating objective of the
United States regarding labor, the environment, and
other matters is to address the following aspects of
foreign government policies and practices regarding
labor, the environment, and other matters that are di-
rectly related to trade:
(A) To ensure that foreign labor, environ-
mental, health, or safety policies and practices
do not arbitrarily or unjustifiably discriminate
or serve as disguised barriers to trade.
(B) To ensure that foreign governments do
not derogate from or waive existing domestic en-
vironmental, health, safety, or labor measures,
including measures that deter exploitative child
labor, as an encouragement to gain competitive
advantage in international trade or investment.
Nothing in this subparagraph is intended to ad-
dress changes to a country’s laws that are con-
sistent with sound macroeconomic development.
(8) WTO EXTENDED NEGOTIATIONS.—The prin-
cipal negotiating objectives of the United States re-
garding trade in financial services are those set forth
in section 135(a) of the Uruguay Round Agreements
Act (19 U.S.C. 3555(a)), regarding trade in civil air-
craft are those set forth in section 135(c) of that Act,
and regarding rules of origin are the conclusion of an
agreement described in section 132 of that Act (19
U.S.C. 3552).
(c) INTERNATIONAL ECONOMIC POLICY OBJECTIVES.—
(1) IN
GENERAL.—The President should take
into account the relationship between trade agree-
ments and other important priorities of the United
States and seek to ensure that the trade agreements
entered into by the United States complement and re-
inforce other policy goals. The United States prior-
ities in this area include—
(A) seeking to ensure that trade and envi-
ronmental policies are mutually supportive;
(B) seeking to protect and preserve the envi-
ronment and enhance the international means
for doing so, while optimizing the use of the
world’s resources;
(C) promoting respect for worker rights and
the rights of children and an understanding of
the relationship between trade and worker rights,
particularly by working with the International
Labor Organization to encourage the observance
and enforcement of core labor standards, includ-
ing the prohibition on exploitative child labor;
and
(D) 
supplementing 
and 
strengthening
standards for protection of intellectual property
under conventions administered by international
organizations other than the World Trade Orga-
nization, expanding these conventions to cover
new and emerging technologies, and eliminating
discrimination and unreasonable exceptions or
preconditions to such protection.
(2) APPLICABILITY OF TRADE AUTHORITIES PRO-
CEDURES.—Nothing in this subsection shall be con-
strued to authorize the use of the trade authorities
procedures described in section 103 to modify United
States law.
(d) GUIDANCE FOR NEGOTIATORS.—
(1) DOMESTIC
OBJECTIVES.—In pursuing the
negotiating objectives described in subsection (b), the
negotiators on behalf of the United States shall take
into account United States domestic objectives, in-
cluding the protection of health and safety, essential
security, environmental, consumer, and employment
opportunity interests, and the law and regulations re-
lated thereto.
(2) CONSULTATIONS WITH CONGRESSIONAL AD-
VISERS AND ENFORCEMENT OF THE TRADE LAWS.—
In the course of negotiations conducted under this
title, the United States Trade Representative shall—
(A) consult closely and on a timely basis
with, and keep fully apprised of the negotiations,
the congressional advisers on trade policy and
negotiations appointed under section 161 of the
Trade Act of 1974; and
(B) preserve the ability of the United States
to enforce rigorously its trade laws, including the
antidumping and countervailing duty laws, and
avoid agreements which lessen the effectiveness of
domestic and international disciplines on unfair
trade, especially dumping and subsidies, in order
to ensure that United States workers, agricul-
tural producers, and firms can compete fully on
fair terms and enjoy the benefits of reciprocal
trade concessions.
(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. 103. 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, and objectives of this title will be promoted
thereby, the President—
(A) may enter into trade agreements with
foreign countries before—
(i) October 1, 2001, or
(ii) October 1, 2005, if trade authori-
ties procedures are extended under sub-
section (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
President’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;
(C) provisions that define and clarify, or
provisions that are related to, the operation or
effect of the provisions of the trade agreement,
(D) provisions to provide adjustment assist-
ance to workers and firms adversely affected by
trade, and
(E) provisions necessary for purposes of
complying with section 252 of the Balanced
Budget and Emergency Deficit Control Act of
1985 in implementing the trade agreement,
to the same extent as such section 151 applies to im-
plementing bills under that section. A bill to which
this subparagraph applies shall hereafter in this title
be referred to as an ‘‘implementing bill’’.
(c) EXTENSION DISAPPROVAL PROCESS FOR CONGRES-
SIONAL TRADE AUTHORITIES PROCEDURES.—
(1) IN GENERAL.—Except as provided in section
105(b)—
(A) the trade authorities procedures apply
to implementing bills submitted with respect to
trade agreements entered into under subsection
(b) before October 1, 2001; and
(B) the trade authorities procedures shall be
extended to implementing bills submitted with
respect to trade agreements entered into under