(1) China has completed the regulatory ap-
proval process for a United States-produced corn 
biotech variety. 
(2) China’s Administration of Quality Super-
vision, Inspection and Quarantine has implemented 
the 2005 Memorandum of Understanding between 
the United States and China designed to facilitate 
cooperation on animal and plant health safety issues 
and improve efforts to expand United States access 
to China’s markets for agricultural commodities. 
(e) ACCOUNTING OF CHINESE SUBSIDIES.—In ac-
cordance with the terms of the Agreement of WTO Acces-
sion for the People’s Republic of China, subsequent agree-
ments by Chinese authorities through the U.S.-China 
Joint Commission on Commerce and Trade (JCCT), and 
other obligations by Chinese officials related to its trade 
obligations, the United States Trade Representative and 
the Secretary of Commerce shall undertake to ensure that 
the Government of the People’s Republic of China has pro-
vided a detailed accounting of its subsidies to the World 
Trade Organization by the end of 2005. 
(f) REPORTS.—
(1) BIANNUAL
REPORT.—Not later than six 
months after the date of the enactment of this Act, 
and every six months thereafter, the President
should transmit to the Committee on Ways and 
Means of the House of Representatives and the 
Committee on Finance of the Senate a report that 
contains—
(A) a description of the specific steps 
taken by the Government of the People’s Re-
public of China to meet its obligations described 
in subsections (a) through (e) of this section 
(other than obligations described in subsections 
(a)(1)(A) and (G), (b)(1), (c)(1), and (e)); 
(B) an analysis of the extent to which Chi-
nese officials are attempting in good faith to 
meet such obligations; and 
(C) a description of the actions, if any, the 
President will take to obtain compliance by 
China if the President determines that the Chi-
nese Government is failing to meet such obliga-
tions, including pursuing United States rights 
under the dispute settlement provisions of the 
World Trade Organization, as appropriate. 
(2) MONTHLY
REPORT.—Not later than 30 
days after the date of the enactment of this Act, and 
every 30 days thereafter, the President should trans-
mit to the Committee on Ways and Means of the
House of Representatives and the Committee on Fi-
nance of the Senate a report that contains—
(A) a description of the specific steps 
taken by the Government of the People’s Re-
public of China to meet its obligations described 
in subsections (a)(1)(A) and (G), (b)(1), (c)(1), 
and (e); 
(B) an analysis of the extent to which Chi-
nese officials are attempting in good faith to 
meet such obligations; and 
(C) a description of the actions, if any, the 
President will take to obtain compliance by 
China if the President determines that the Chi-
nese Government is failing to meet such obliga-
tions, including pursuing United States rights 
under the dispute settlement provisions of the 
World Trade Organization, as appropriate. 
SEC. 6. REPORTS ON CURRENCY MANIPULATION BY FOR-
EIGN COUNTRIES. 
(a) REPORT
ON CURRENCY MANIPULATION.—Not 
later than 60 days after the date of the enactment of this 
Act, the Secretary of the Treasury shall submit to the ap-
propriate congressional committees a report that—
(1) defines currency manipulation;
(2) describes actions of foreign countries that 
will be considered to be currency manipulation; and 
(3) describes how statutory provisions address-
ing currency manipulation by trading partners of the 
United States contained in, and relating to, section 
40 of the Bretton Woods Agreements Act (22 
U.S.C. 286y) and sections 3004 and 3005 of the Ex-
change Rates and International Economic Policy Co-
ordination Act of 1988 (22 U.S.C. 5304 and 5305) 
can be better clarified administratively to provide for 
improved and more predictable evaluation. 
(b) REPORT ON ACTIONS BY CHINA.—
(1) IN GENERAL.—In light of the recent posi-
tive announcement by the Government of the Peo-
ple’s Republic of China with respect to increased ex-
change rate flexibility, the Secretary of the Treasury 
shall submit to the appropriate congressional com-
mittees a report that examines the mechanism 
adopted by the Chinese Government to relate its cur-
rency to a basket of foreign currencies and the de-
gree to which the application of this mechanism 
moves the currency closer to a market-based rep-
resentation of its value. 
(2) DEADLINE.— The initial report required by 
this subsection shall be submitted to the appropriate
congressional committees not later than 180 days 
after the date of the enactment of this Act and sub-
sequent reports shall be included in the report re-
quired under section 3005 of the Exchange Rates 
and International Economic Policy Coordination Act 
of 1988 (22 U.S.C. 5305). 
(c) DEFINITION.—In this section, the term ‘‘appro-
priate congressional committees’’ means—
(1) the Committee on Ways and Means and the 
Committee on Financial Services of the House of 
Representatives; and 
(2) the Committee on Finance and the Com-
mittee on Banking, Housing, and Urban Affairs of 
the Senate. 
SEC. 7. AUTHORIZATION OF APPROPRIATIONS FOR THE OF-
FICE OF THE UNITED STATES TRADE REP-
RESENTATIVE. 
(a) AUTHORIZATION OF APPROPRIATIONS.—
(1) IN GENERAL.—Section 141(g)(1)(A) of the 
Trade Act of 1974 (19 U.S.C. 2171(g)(1)(A)) is 
amended by striking clauses (i) and (ii) and insert-
ing the following: 
‘‘(i) $44,779,000 for fiscal year 2006. 
‘‘(ii) $47,018,000 for fiscal year 2007.’’.
(2) RULE OF CONSTRUCTION.—The amendment 
made by paragraph (1) shall not be construed to af-
fect the availability of funds appropriated pursuant 
to section 141(g)(1)(A) of the Trade Act of 1974 be-
fore the date of the enactment of this Act. 
(b) AUTHORIZATION OF APPROPRIATIONS FOR THE 
OFFICE
OF
THE GENERAL COUNSEL
AND CERTAIN 
OTHER OFFICES.—There are authorized to be appro-
priated to the Office of the United States Trade Rep-
resentative for the appointment of additional staff in or 
enhanced activities by the Office of the General Counsel, 
the Office of Monitoring and Enforcement, the Office of 
China Affairs, and the Office of Japan, Korea, and APEC 
Affairs—
(1) $4,000,000 for fiscal year 2006; and 
(2) $4,000,000 for fiscal year 2007. 
(c) SENSE OF CONGRESS.—It is the sense of the Con-
gress that the enforcement of United States rights and 
of obligations of United States trading partners under 
trade agreements has gained such significance that the 
United States Trade Representative should determine 
which of its current positions is most responsible for car-
rying out these important enforcement duties and should 
assign that position, in addition to any other title, the title 
of Chief Enforcement Officer.
SEC. 8. AUTHORIZATION OF APPROPRIATIONS FOR THE 
UNITED 
STATES 
INTERNATIONAL 
TRADE 
COMMISSION. 
(a) AUTHORIZATION OF APPROPRIATIONS.—Section 
330(e)(2)(A) of the Tariff Act of 1930 (19 U.S.C. 
1330(e)(2)(A)) is amended by striking clauses (i) and (ii) 
and inserting the following: 
‘‘(i) $62,752,000 for fiscal year 2006. 
‘‘(ii) $65,890,000 for fiscal year 2007.’’. 
(b) RULE
OF
CONSTRUCTION.—The amendment 
made by subsection (a) shall not be construed to affect 
the availability of funds appropriated pursuant to section 
330(e)(2)(A) of the Tariff Act of 1930 before the date 
of the enactment of this Act. 
(c) STUDY AND REPORT ON TRADE AND ECONOMIC 
RELATIONS WITH CHINA.—
(1) STUDY.—
(A) IN
GENERAL.—The United States 
International Trade Commission shall carry out 
a comprehensive study on trade and economic 
relations between the United States and the 
People’s Republic of China which addresses 
China’s economic policies, including its ex-
change rate policy, the competitiveness of its in-
dustries, the composition and nature of its 
trade patterns, and other elements impacting
the United States trade account, industry, com-
petitiveness, and employment. 
(B) REQUIREMENTS.—In carrying out the 
study under subparagraph (A), the United 
States International Trade Commission shall 
undertake the following: 
(i) An analysis of the United States 
trade and investment relationship with 
China, with a focus on the United States-
China trade balance and trends affecting 
particular industries, products, and sectors 
in agriculture, manufacturing, and serv-
ices. The analysis shall provide context for 
understanding the U.S.-China trade and 
investment relationship, by including infor-
mation regarding China’s economic rela-
tionships with third countries and China’s 
changing policy regime and business envi-
ronment. The analysis shall include a focus 
on United States-China trade in goods and 
services, United States direct investment in 
China, China’s foreign direct investment in 
the United States, and the relationship be-
tween trade and investment. The analysis
shall make adjustments, where possible, for 
merchandise passed through Hong Kong. 
(ii) An analysis of the competitive 
conditions in China affecting United States 
exports and United States direct invest-
ment. The analysis shall take into account, 
to the extent feasible, significant factors 
including tariffs and non-tariff measures, 
competition from Chinese domestic firms 
and foreign-based companies operating in 
China, the Chinese regulatory environ-
ment, including specific regulations and 
overall regulatory transparency, and other 
Chinese industrial and financial policies. In 
addition, the analysis shall examine the 
specific 
competitive 
conditions 
facing 
United States producers in key industries, 
products, services, and sectors, potentially 
including 
computer 
and 
telecommuni-
cations hardware, textiles, grains, cotton, 
and financial services based on trade and 
investment flows. 
(iii) An examination of the role and 
importance of intellectual property rights 
issues, such as patents, copyrights, and li-
censing, in specific industries in China, in-
cluding the pharmaceutical industry, the 
software industry, and the entertainment 
industry. 
(iv) An analysis of the effects on glob-
al commodity markets of China’s growing 
demand for energy and raw materials. 
(v) An examination of whether or not 
increased United States imports from 
China reflect displacement of United 
States imports from third countries or 
United States domestic production, and 
the role of intermediate and value-added 
goods processing in China’s pattern of 
trade. 
(2) REPORT.—Not later than one year after the 
date of the enactment of this Act, the United States 
International Trade Commission shall submit to the 
Committee on Ways and Means of the House of 
Representatives and the Committee on Finance of 
the Senate a report that contains the results of the 
study carried out under paragraph (1).
SEC. 9. SENSE OF CONGRESS REGARDING EXPANSION OF 
MEMBERSHIP IN THE AGREEMENT ON GOV-
ERNMENT PROCUREMENT OF THE WTO. 
(a) FINDINGS.—Congress finds the following: 
(1) Nondiscriminatory, procompetitive, merit-
based, and technology-neutral procurement of goods 
and services is essential so that governments can ac-
quire the best goods to meet their needs for the best 
value. 
(2) The Agreement on Government Procure-
ment (GPA) of the World Trade Organization 
(WTO) provides a multilateral framework of rights 
and obligations founded on such principles. 
(3) The United States is a member of the GPA, 
along with Canada, the European Union (including 
its 25 member States: Austria, Belgium, Cyprus, the 
Czech 
Republic, 
Denmark, 
Estonia, 
Finland, 
France, Germany, Greece, Hungary, Ireland, Italy, 
Latvia, Lithuania, Luxembourg, Malta, the Nether-
lands, Poland, Portugal, Slovak Republic, Slovenia, 
Spain, Sweden, and the United Kingdom), Hong 
Kong, Iceland, Israel, Japan, Korea, Liechtenstein, 
the Netherlands with respect to Aruba, Norway, 
Singapore, and Switzerland.
(4) Albania, Bulgaria, Georgia, Jordan, the 
Kyrgyz Republic, Moldova, Oman, Panama, and Tai-
wan are currently negotiating to accede to the GPA. 
(5) The People’s Republic of China joined the 
WTO in December 2001, signaling to the inter-
national community its commitment to greater open-
ness. 
(6) When China joined the WTO, it committed, 
in its protocol of accession, to negotiate entry into 
the GPA ‘‘as soon as possible’’. 
(7) More than 3 years after its entry into the 
WTO, China has not commenced negotiations to join 
the GPA. 
(8) Recent legal developments in China illus-
trate the importance and urgency of expanding 
membership in the GPA. 
(9) In 2002, China enacted a law on govern-
ment procurement that incorporates preferences for 
domestic goods and services. 
(10) The first sector for which the Chinese 
Government has sought to implement the new gov-
ernment procurement law is computer software. 
(11) In March 2005 the Chinese Government 
released draft regulations governing the procurement 
of computer software.