IIB
107TH CONGRESS
1ST SESSION
H. R. 3005
IN THE SENATE OF THE UNITED STATES
DECEMBER 6, 2001
Received; read twice and referred to the Committee on Finance
AN ACT
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,
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SECTION 1. SHORT TITLE AND FINDINGS.
(a) SHORT TITLE.—This Act may be cited as the
‘‘Bipartisan 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.
Stable trading relationships promote security and
prosperity. Trade agreements today serve the same
purposes 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, democracy, 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,
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medical equipment, services, agriculture, environ-
mental technology, and intellectual property. Trade
will create new opportunities for the United States
and preserve the unparalleled strength of the United
States in economic, political, and military affairs.
The United States, secured by expanding trade and
economic opportunities, will meet the challenges of
the twenty-first century.
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
barriers 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;
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(4) to foster economic growth, raise living
standards, 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;
(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 11(2)) and an understanding
of the relationship between trade and worker rights;
and
(7) to seek provisions in trade agreements
under which parties to those agreements strive to
ensure that they do not weaken or reduce the protec-
tions afforded in domestic environmental and labor
laws as an encouragement for trade.
(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—
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(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 non-
tariff barrier elimination agreements, with par-
ticular attention to those tariff categories cov-
ered in section 111(b) of the Uruguay Round
Agreements Act (19 U.S.C. 3521(b)).
(2) TRADE IN SERVICES.—The principal negoti-
ating 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 and
market access or unreasonably restrict the establish-
ment or operations of service suppliers.
(3) FOREIGN INVESTMENT.—The principal ne-
gotiating objective of the United States regarding
foreign investment is to reduce or eliminate artificial
or trade-distorting barriers to trade-related foreign
investment and, recognizing that United States law
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on the whole provides a high level of protection for
investment, consistent with or greater than the level
required by international law, to secure for investors
important rights comparable to those that would be
available under United States legal principles and
practice, 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
requirements, forced technology transfers, and
other unreasonable barriers to the establish-
ment and operation of investments;
(D) seeking to establish standards for ex-
propriation and compensation for expropriation,
consistent with United States legal principles
and practice;
(E) providing meaningful procedures for
resolving investment disputes;
(F) seeking to improve mechanisms used
to resolve disputes between an investor and a
government through—
(i) mechanisms to eliminate frivolous
claims; and
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(ii) procedures to ensure the efficient
selection of arbitrators and the expeditious
disposition of claims;
(G) providing an appellate or similar re-
view mechanism to correct manifestly erroneous
interpretations of law; and
(H) ensuring the fullest measure of trans-
parency in the dispute settlement mechanism,
to the extent consistent with the need to protect
information that is classified or business con-
fidential, by—
(i) ensuring that all requests for dis-
pute settlement are promptly made public;
(ii) ensuring that—
(I) all proceedings, submissions,
findings, and decisions are promptly
made public;
(II) all hearings are open to the
public; and
(iii) establishing a mechanism for ac-
ceptance of amicus curiae submissions
from businesses, unions, and nongovern-
mental organizations.
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(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,
including through—
(i)(I) ensuring accelerated and full
implementation of the Agreement on
Trade-Related 
Aspects 
of 
Intellectual
Property Rights referred to in section
101(d)(15) of the Uruguay Round Agree-
ments Act (19 U.S.C. 3511(d)(15)), par-
ticularly with respect to meeting enforce-
ment 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
reflect 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;
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(iii) preventing or eliminating dis-
crimination with respect to matters affect-
ing the availability, acquisition, scope,
maintenance, use, and enforcement of in-
tellectual property rights;
(iv) ensuring that standards of protec-
tion and enforcement keep pace with tech-
nological developments, and in particular
ensuring 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
prevent the unauthorized use of their
works; and
(v) providing strong enforcement of
intellectual 
property 
rights, 
including
through accessible, expeditious, and effec-
tive civil, administrative, and criminal en-
forcement mechanisms; and
(B) to secure fair, equitable, and non-
discriminatory market access opportunities for
United States persons that rely upon intellec-
tual property protection.
(5) TRANSPARENCY.—The principal negotiating
objective of the United States with respect to trans-
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parency is to obtain wider and broader application
of the principle of transparency through—
(A) increased and more timely public ac-
cess to information regarding trade issues and
the activities of international trade institutions;
(B) increased openness at the WTO and
other international trade fora by increasing
public access to appropriate meetings, pro-
ceedings, and submissions, including with re-
gard to dispute settlement and investment; and
(C) increased and more timely public ac-
cess to all notifications and supporting docu-
mentation 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 influ-
ence acts, decisions, or omissions of foreign govern-
ments or officials or to secure any improper advan-
tage 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
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(A) to achieve increased transparency and
opportunity for the participation of affected
parties 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
negotiating objectives of the United States with re-
spect to electronic commerce are—
(A) to ensure that current obligations,
rules, disciplines, and commitments under the
World Trade Organization apply to electronic
commerce;
(B) to ensure that—
(i) electronically delivered goods and
services receive no less favorable treatment
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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
treatment possible;
(C) to ensure that governments refrain
from implementing trade-related measures that
impede 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
promote 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
agricultural commodities in foreign markets substan-
tially equivalent to the competitive opportunities af-
forded foreign exports in United States markets and
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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;
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(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
mechanisms to eliminate practices that unfairly
decrease United States market access opportu-
nities or distort agricultural markets to the det-
riment 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
subsidization, price discrimination, and
price undercutting;
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(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 perish-
able 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 pro-
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visions of already existing trade agreements
with the United States or has circumvented ob-
ligations 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
agreements with the United States or by the
circumvention 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
commitments 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
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seek to develop a position on the treatment of sea-
sonal and perishable agricultural products to be em-
ployed in the negotiations in order to develop an
international consensus on the treatment of seasonal
or perishable agricultural products in investigations
relating 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 cal-
culating the Aggregated Measurement of Support
(as defined in the Agreement on Agriculture) as the
end of each country’s Uruguay Round implementa-
tion period, 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.
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(11) LABOR
AND
THE
ENVIRONMENT.—The
principal negotiating objectives of the United States
with respect to labor and the environment are—
(A) to ensure that a party to a trade
agreement with the United States does not fail
to effectively 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 countries;
(B) to recognize that parties to a trade
agreement retain the right to exercise discretion
with respect to investigatory, prosecutorial, reg-
ulatory, and compliance matters and to make
decisions regarding the allocation of resources
to enforcement with respect to other labor or
environmental matters determined to have high-
er priorities, and to recognize that a country is
effectively enforcing its laws if a course of ac-
tion or inaction reflects a reasonable exercise of
such discretion, or results from a bona fide de-
cision regarding the allocation of resources and
no retaliation may be authorized based on the
exercise of these rights or the right to establish
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domestic labor standards and levels of environ-
mental protection;
(C) to strengthen the capacity of United
States trading partners to promote respect for
core labor standards (as defined in section
11(2));
(D) to strengthen the capacity of United
States trading partners to protect the environ-
ment through the promotion of sustainable de-
velopment;
(E) to reduce or eliminate government
practices or policies that unduly threaten sus-
tainable development;
(F) to seek market access, through the
elimination 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
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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
governments under those trade agreements in
an effective, timely, transparent, equitable, and
reasoned manner, requiring determinations
based on facts and the principles of the agree-
ments, 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
provision 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—
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(i) encourages compliance with the ob-
ligations of the agreement;
(ii) is appropriate to the parties, na-
ture, subject matter, and scope of the vio-
lation; 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 ori-
gin are the conclusion of an agreement described in
section 132 of that Act (19 U.S.C. 3552).
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(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 pro-
mote respect for core labor standards (as defined in
section 11(2)), 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;
(3) seek to establish consultative mechanisms
among parties to trade agreements to strengthen the
capacity of United States trading partners to de-
velop and implement standards for the protection of
the environment 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
Executive Order 13141 of November 16, 1999 and
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its relevant 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 reviews;
(5) review the impact of future trade agree-
ments on United States employment, modeled after
Executive Order 13141, and report to the Com-
mittee on Ways and Means of the House of Rep-
resentatives and the Committee on Finance of the
Senate on such review;
(6) take into account other legitimate United
States domestic objectives including, but not limited
to, the protection of legitimate health or safety, es-
sential 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 provide technical assistance to that country if
needed;
(8) with respect to any trade agreement which
the President seeks to implement under trade au-
thorities procedures, submit to the Congress a report
describing the extent to which the country or coun-
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tries 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 domes-
tic and international disciplines on unfair trade, es-
pecially 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 mul-
tilateral 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;
(11) report to the Committee on Ways and
Means of the House of Representatives and the
Committee on Finance of the Senate, not later than
12 months after the imposition of a penalty or rem-
edy by the United States permitted by a trade agree-
ment to which this Act applies, on the effectiveness
of the penalty or remedy applied under United
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States law in enforcing United States rights under
the trade agreement; and
(12) seek to establish consultative mechanisms
among parties to trade agreements to examine the
trade consequences of significant and unanticipated
currency movements and to scrutinize whether a for-
eign government engaged in a pattern of manipu-
lating its currency to promote a competitive advan-
tage in international trade.
The report under paragraph (11) shall address whether
the penalty or remedy was effective in changing the behav-
ior of the targeted party and whether the penalty or rem-
edy 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 Representa-
tives and the Senate with jurisdiction over laws that
would be affected by a trade agreement resulting
from the negotiations.
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(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 negotia-
tions, the Committee on Agriculture of the
House of Representatives and the Committee
on Agriculture, Nutrition, and Forestry of the
Senate.
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(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 de-
termines that one or more existing duties or other
import restrictions of any foreign country or the
United States are unduly burdening and restricting
the foreign 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,
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(ii) such continuance of existing duty-
free or excise treatment, or
(iii) such additional duties,
as the President determines to be required or
appropriate to carry out any such trade agree-
ment.
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
valorem on the date of the enactment of this
Act) to a rate of duty which is less than 50 per-
cent of the rate of such duty that applies on
such date of enactment;
(B) notwithstanding paragraph (6), re-
duces the rate of duty below that applicable
under the Uruguay Round Agreements, on any
agricultural product which was the subject of
tariff reductions by the United States as a re-
sult of the Uruguay Round Agreements, for
which the rate of duty, pursuant to such Agree-
ments, was reduced on January 1, 1995, to a
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rate which was not less than 97.5 percent of
the rate of duty that applied to such article on
December 31, 1994; or
(C) 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 valo-
rem or a reduction of one-tenth of the total
reduction, whichever is greater, had taken
effect on the effective date of the first re-
duction 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
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at 1-year intervals after the effective date
of such first reduction.
(B) 
EXEMPTION
FROM
STAGING.—No
staging is required under subparagraph (A)
with respect to a duty reduction that is pro-
claimed under paragraph (1) for an article of a
kind that is not produced in the United States.
The United States International Trade Com-
mission shall advise the President of the iden-
tity of articles that may be exempted from stag-
ing under this subparagraph.
(4) ROUNDING.—If the President determines
that such action will simplify the computation of re-
ductions 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 re-
duction that may not be proclaimed by reason of
paragraph (2) may take effect only if a provision au-
thorizing such reduction is included within an imple-
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menting bill provided for under section 5 and that
bill is enacted into law.
(6) OTHER TARIFF MODIFICATIONS.—Notwith-
standing paragraphs (1)(B), (2)(A), (2)(C), and (3)
through (5), and subject to the consultation and lay-
over requirements of section 115 of the Uruguay
Round Agreements Act, the President may proclaim
the modification of any duty or staged rate reduc-
tion of any duty set forth in Schedule XX, as de-
fined in section 2(5) of that Act, if the United
States agrees to such modification or staged rate re-
duction in a negotiation for the reciprocal elimi-
nation or harmonization of duties under the auspices
of the World Trade Organization.
(7) AUTHORITY
UNDER
URUGUAY
ROUND
AGREEMENTS ACT NOT AFFECTED.—Nothing in this
subsection shall limit the authority provided to the
President under section 111(b) of the Uruguay
Round Agreements Act (19 U.S.C. 3521(b)).
(b) AGREEMENTS REGARDING TARIFF AND NON-
TARIFF 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
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United States or any other barrier to, or other
distortion of, international trade unduly bur-
dens 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,
restriction, 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
subparagraph (C).
(B) The President may enter into a trade
agreement 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
agreement under this paragraph before—
(i) June 1, 2005; or
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(ii) June 1, 2007, if trade authorities pro-
cedures are extended under subsection (c).
(2) CONDITIONS.—A trade agreement may be
entered into under this subsection only if such
agreement makes progress in meeting the applicable
objectives described in section 2(a) and (b) and the
President satisfies the conditions set forth in section
4.
(3) BILLS QUALIFYING FOR TRADE AUTHORI-
TIES 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 either House of Congress which contains provi-
sions described in subparagraph (B) to the same ex-
tent as such section 151 applies to implementing
bills under that section. A bill to which this para-
graph applies shall hereafter in this Act be referred
to as an ‘‘implementing bill’’.
(B) The provisions referred to in subparagraph
(A) are—
(i) a provision approving a trade agree-
ment entered into under this subsection and ap-
proving the statement of administrative action,
if any, proposed to implement such trade agree-
ment; and
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(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 CON-
GRESSIONAL TRADE AUTHORITIES PROCEDURES.—
(1) IN GENERAL.—Except as provided in sec-
tion 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.
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(2) REPORT
TO
CONGRESS
BY
THE
PRESI-
DENT.—If the President is of the opinion that the
trade authorities procedures should be extended to
implementing 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 request 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 justi-
fies 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 de-
cision to submit a report to the Congress under
paragraph (2). The Advisory Committee shall submit
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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
requested under paragraph (2) should be ap-
proved 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
either 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 extension, under section 3(c)(1)(B)(i) of the Bi-
partisan Trade Promotion Authority Act of 2001, of
the trade authorities procedures under that Act to
any implementing bill submitted with respect to any
trade agreement entered into under section 3(b) of
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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 section 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
disapproval resolution not reported by the Com-
mittee on Finance;
(ii) the House of Representatives to con-
sider any extension disapproval resolution not
reported by the Committee on Ways and Means
and, in addition, by the Committee on Rules; or
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(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 sec-
toral agreements to countries that are not parties to those
agreements, in cases where the President determines that
such negotiations are feasible and timely and would ben-
efit the United States. Such sectors include agriculture,
commercial services, intellectual property rights, industrial
and capital goods, government procurement, information
technology products, environmental technology and serv-
ices, medical equipment and services, civil aircraft, and in-
frastructure 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
initiating negotiations, written notice to the Con-
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gress of the President’s intention to enter into the
negotiations and set forth therein the date the Presi-
dent intends to initiate such negotiations, the spe-
cific United States objectives for the negotiations,
and whether the President intends to seek an agree-
ment, or changes to an existing agreement;
(2) before and after submission of the notice,
consult regarding the negotiations with the Com-
mittee on Finance of the Senate and the Committee
on Ways and Means of the House of Representa-
tives, such other committees of the House and Sen-
ate as the President deems appropriate, and the
Congressional Oversight group convened under sec-
tion 7; and
(3) upon the request of a majority of the mem-
bers of the Congressional Oversight Group under
section 7(c), meet with the Congressional Oversight
Group before initiating the negotiations or at any
other time concerning the negotiations.
(b) NEGOTIATIONS REGARDING AGRICULTURE.—
(1) IN
GENERAL.—Before initiating or con-
tinuing negotiations the subject matter of which is
directly related to the subject matter under section
2(b)(10)(A)(i) with any country, the President shall
assess whether United States tariffs on agricultural
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products that were bound under the Uruguay Round
Agreements are lower than the tariffs bound by that
country. In addition, the President shall consider
whether the tariff levels bound and applied through-
out the world with respect to imports 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 Rep-
resentatives and the Committee on Finance and the
Committee on Agriculture, Nutrition, and Forestry
of the Senate concerning the results of the assess-
ment, whether it is appropriate for the United
States to agree to further tariff reductions based on
the conclusions reached in the assessment, and how
all applicable negotiating objectives will be met.
(2) SPECIAL CONSULTATIONS ON IMPORT SEN-
SITIVE
PRODUCTS.—(A) Before initiating negotia-
tions with regard to agriculture, and, with respect to
the Free Trade Area for the Americas and negotia-
tions with regard to agriculture under the auspices
of the World Trade Organization, as soon as prac-
ticable after the enactment of this Act, the United
States Trade Representative shall—
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(i) identify those agricultural products sub-
ject to tariff reductions by the United States as
a result of the Uruguay Round Agreements, for
which the rate of duty was reduced on January
1, 1995, to a rate which was not less than 97.5
percent of the rate of duty that applied to such
article on December 31, 1994;
(ii) consult with the Committee on Ways
and Means and the Committee on Agriculture
of the House of Representatives and the Com-
mittee on Finance and the Committee on Agri-
culture, Nutrition, and Forestry of the Senate
concerning—
(I) whether any further tariff reduc-
tions on the products identified under
clause (i) should be appropriate, taking
into account the impact of any such tariff
reduction on the United States industry
producing the product concerned; and
(II) whether the products so identified
face unjustified sanitary or phytosanitary
restrictions, including those not based on
scientific principles in contravention of the
Uruguay Round Agreements;
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(iii) request that the International Trade
Commission prepare an assessment of the prob-
able economic effects of any such tariff reduc-
tion on the United States industry producing
the product concerned and on the United States
economy as a whole; and
(iv) upon complying with clauses (i), (ii),
and (iii), notify 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 of those
products identified under clause (i) for which
the Trade Representative intends to seek tariff
liberalization in the negotiations and the rea-
sons for seeking such tariff liberalization.
(B) If, after negotiations described in subpara-
graph (A) are commenced—
(i) the United States Trade Representative
identifies any additional agricultural product
described in subparagraph (A)(i) for tariff re-
ductions which were not the subject of a notifi-
cation under subparagraph (A)(iv), or
(ii) any additional agricultural product de-
scribed in subparagraph (A)(i) is the subject of
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a request for tariff reductions by a party to the
negotiations,
the Trade Representative shall, as soon as prac-
ticable, notify the committees referred to in subpara-
graph (A)(iv) of those products and the reasons for
seeking such tariff reductions.
(c) NEGOTIATIONS REGARDING TEXTILES.—Before
initiating or continuing negotiations the subject matter of
which is directly related to textiles and apparel products
with any country, the President shall assess whether
United States tariffs on textile and apparel products that
were bound under the Uruguay Round Agreements are
lower than the tariffs bound by that country and whether
the negotiation provides an opportunity to address any
such disparity. The President shall consult with the Com-
mittee on Ways and Means of the House of Representa-
tives and the Committee on Finance of the Senate con-
cerning the results of the assessment, whether it is appro-
priate for the United States to agree to further tariff re-
ductions based on the conclusions reached in the assess-
ment, and how all applicable negotiating objectives will be
met.
(d) CONSULTATION
WITH
CONGRESS
BEFORE
AGREEMENTS ENTERED INTO.—
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(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 Com-
mittee on Finance of the Senate;
(B) each other committee of the House
and the Senate, and each joint committee of the
Congress, which has jurisdiction over legislation
involving subject matters which would be af-
fected by the trade agreement; and
(C) the Congressional Oversight Group
convened under section 7.
(2) SCOPE.—The consultation described in
paragraph (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.
(e) ADVISORY COMMITTEE REPORTS.—The report
required under section 135(e)(1) of the Trade Act of 1974
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regarding 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 Presi-
dent notifies the Congress under section 3(a)(1) or
5(a)(1)(A) of the President’s intention to enter into the
agreement.
(f) ITC ASSESSMENT.—
(1) IN GENERAL.—The President, at least 90
calendar days before the day on which the President
enters 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 assessment 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 im-
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pact of the agreement on the United States economy
as a whole and on specific industry sectors, includ-
ing the impact the agreement will have on the gross
domestic product, exports and imports, aggregate
employment and employment opportunities, the pro-
duction, employment, and competitive position of in-
dustries likely to be significantly affected by the
agreement, and the interests of United States con-
sumers.
(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 anal-
yses used and conclusions drawn in such literature,
and a discussion of areas of consensus and diver-
gence between 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
agreement entered into under section 3(b) shall
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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 en-
ters into the trade agreement, notifies the
House of Representatives and the Senate of the
President’s intention to enter into the agree-
ment, and promptly thereafter publishes notice
of such intention in the Federal Register;
(B) within 60 days after entering into the
agreement, the President submits to the Con-
gress a description of those changes to existing
laws that the President considers would be re-
quired in order to bring the United States into
compliance with the agreement;
(C) after entering into the agreement, the
President submits to the Congress, on a day on
which both Houses of Congress are in session,
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);
(ii) a statement of any administrative
action proposed to implement the trade
agreement; and
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(iii) the supporting information de-
scribed in paragraph (2); and
(D) the implementing bill is enacted into
law.
(2) SUPPORTING
INFORMATION.—The sup-
porting information required under paragraph
(1)(C)(iii) consists of—
(A) an explanation as to how the imple-
menting bill and proposed administrative action
will change or affect existing law; and
(B) a statement—
(i) asserting that the agreement
makes progress in achieving the applicable
purposes, policies, priorities, and objectives
of this Act; and
(ii) setting forth the reasons of the
President regarding—
(I) how and to what extent the
agreement makes progress in achiev-
ing the applicable purposes, policies,
and objectives referred to in clause (i);
(II) whether and how the agree-
ment changes provisions of an agree-
ment previously negotiated;
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plication is consistent with the terms of the agree-
ment.
(b) LIMITATIONS ON TRADE AUTHORITIES PROCE-
DURES.—
(1) FOR
LACK
OF
NOTICE
OR
CONSULTA-
TIONS.—
(A) IN GENERAL.—The trade authorities
procedures shall not apply to any implementing
bill submitted with respect to a trade agreement
or trade agreements entered into under section
3(b) if during the 60-day period beginning on
the date that one House of Congress agrees to
a procedural disapproval resolution for lack of
notice or consultations with respect to such
trade agreement or agreements, the other
House separately agrees to a procedural dis-
approval resolution with respect to such trade
agreement or agreements.
(B) PROCEDURAL DISAPPROVAL RESOLU-
TION.—(i) For purposes of this paragraph, the
term ‘‘procedural disapproval resolution’’ means
a resolution of either House of Congress, the
sole matter after the resolving clause of which
is as follows: ‘‘That the President has failed or
refused to notify or consult in accordance with
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the Bipartisan Trade Promotion Authority Act
of 2001 on negotiations with respect to
llllll and, therefore, the trade au-
thorities procedures under that Act shall not
apply to any implementing bill submitted with
respect to such trade agreement or agree-
ments.’’, with the blank space being filled with
a description of the trade agreement or agree-
ments with respect to which the President is
considered to have failed or refused to notify or
consult.
(ii) For purposes of clause (i), the Presi-
dent has ‘‘failed or refused to notify or consult
in accordance with the Bipartisan Trade Pro-
motion Authority Act of 2001’’ on negotiations
with respect to a trade agreement or trade
agreements if—
(I) the President has failed or refused
to consult (as the case may be) in accord-
ance with section 4 or 5 with respect to the
negotiations, agreement, or agreements;
(II) guidelines under section 7(b) have
not been developed or met with respect to
the negotiations, agreement, or agree-
ments;
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(III) the President has not met with
the Congressional Oversight Group pursu-
ant to a request made under section 7(c)
with respect to the negotiations, agree-
ment, or agreements; or
(IV) the agreement or agreements fail
to make progress in achieving the pur-
poses, policies, priorities, and objectives of
this Act.
(2) PROCEDURES FOR CONSIDERING RESOLU-
TIONS.—(A) Procedural disapproval resolutions—
(i) in the House of Representatives—
(I) may be introduced by any Member
of the House;
(II) shall be referred to the Com-
mittee on Ways and Means and, in addi-
tion, to the Committee on Rules; and
(III) may not be amended by either
Committee; and
(ii) in the Senate may be introduced by
any Member of the Senate.
(B) The provisions of section 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 a proce-
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dural disapproval resolution introduced with respect
to a trade agreement if no other procedural dis-
approval resolution with respect to that trade agree-
ment has previously been considered under such pro-
visions of section 152 of the Trade Act of 1974 in
that House of Congress during that Congress.
(C) It is not in order for the House of Rep-
resentatives to consider any procedural disapproval
resolution not reported by the Committee on Ways
and Means and, in addition, by the Committee on
Rules.
(c) RULES OF HOUSE OF REPRESENTATIVES AND
SENATE.—Subsection (b) of this section and section 3(c)
are enacted by the Congress—
(1) as an exercise of the rulemaking power of
the House of Representatives and the Senate, re-
spectively, and as such are deemed a part of the
rules of each House, respectively, and such proce-
dures supersede other rules only to the extent that
they are inconsistent with such other rules; and
(2) with the full recognition of the constitu-
tional 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 ex-
tent as any other rule of that House.
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SEC. 6. TREATMENT OF CERTAIN TRADE AGREEMENTS FOR
WHICH 
NEGOTIATIONS 
HAVE 
ALREADY
BEGUN.
(a) CERTAIN AGREEMENTS.—Notwithstanding sec-
tion 3(b)(2), if an agreement to which section 3(b)
applies—
(1) is entered into under the auspices of the
World Trade Organization,
(2) is entered into with Chile,
(3) is entered into with Singapore, or
(4) establishes a Free Trade Area for the
Americas,
and results from negotiations that were commenced before
the date of the enactment of this Act, subsection (b) shall
apply.
(b) TREATMENT OF AGREEMENTS.—In the case of
any agreement to which subsection (a) applies—
(1) the applicability of the trade authorities
procedures to implementing bills shall be determined
without regard to the requirements of section 4(a)
(relating only to 90 days notice prior to initiating
negotiations), and any procedural disapproval resolu-
tion under section 5(b)(1)(B) shall not be in order
on the basis of a failure or refusal to comply with
the provisions of section 4(a); and
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(2) the President shall, as soon as feasible after
the enactment of this Act—
(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 agree-
ment 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
chairman of the Committee on Finance of the Sen-
ate 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: