I
104TH CONGRESS
2D SESSION
H. R. 3314
To assess the impact of the NAFTA, to require further negotiation of certain
provisions of the NAFTA, to establish a commission to review the dispute
settlement reports of the World Trade Organization, and for other pur-
poses.
IN THE HOUSE OF REPRESENTATIVES
APRIL 24, 1996
Mr. REGULA introduced the following bill; which was referred to the Commit-
tee on Ways and Means, and in addition to the Committee on Rules, for
a period to be subsequently determined by the Speaker, in each case for
consideration of such provisions as fall within the jurisdiction of the com-
mittee concerned
A BILL
To assess the impact of the NAFTA, to require further
negotiation of certain provisions of the NAFTA, to estab-
lish a commission to review the dispute settlement re-
ports of the World Trade Organization, and for other
purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘NAFTA Renegotiation
and WTO Dispute Settlement Review Commission Act’’.
HR 3314 IH
TITLE I—NAFTA RENEGOTIATION ACT
SEC. 101. FINDINGS.
The Congress makes the following findings:
(1) EXPANDED MARKETS.—One of the purposes
of the NAFTA, as stated in the preamble, is to ‘‘cre-
ate an expanded and secure market’’ for goods and
services. Instead, the NAFTA has resulted in a spi-
raling trade deficit with Mexico and Canada that
will exceed $30,000,000,000 in 1995.
(2) CURRENCY
STABILITY.—One of the pur-
poses of the NAFTA is to ‘‘ensure a predictable
commercial framework for business planning and in-
vestment’’. However, the NAFTA contains no safe-
guards to minimize the negative economic impacts of
severe shifts in currency exchange rates among the
NAFTA parties. To protect its own economy the
United States has sought to bolster the Mexican
peso 
which 
is 
now 
being 
supported 
by
$30,000,000,000 in loans.
(3) NAFTA TO BE RENEGOTIATED.—Based on
the experience with the NAFTA since its implemen-
tation, it has become evident that further negotia-
tion is required to resolve fundamental inadequacies
within the NAFTA with respect to trade balances
and currency differentials.
HR 3314 IH
SEC. 102. RENEGOTIATION OF THE NAFTA.
(a) IN GENERAL.—The President is authorized and
directed to confer with the Governments of Canada and
Mexico and to renegotiate the terms of the NAFTA as
described in this subsection by December 31, 1997:
(1) RENEGOTIATION
OF
NAFTA
TO
CORRECT
TRADE DEFICITS.—The President is authorized and
directed to confer with the Governments of Canada
and Mexico and to renegotiate the terms of the
NAFTA to provide for implementation of emergency
adjustments of tariffs, quotas, and other measures
to stabilize the flow of trade among the NAFTA
parties when the United States has an annual deficit
in trade of goods and services with another NAFTA
party that exceeds 10 percent of the United States
exports to that party.
(2) RENEGOTIATE
THE
NAFTA
TO
CORRECT
CURRENCY DISTORTIONS.—The President is author-
ized and directed to confer with the Governments of
Canada and Mexico and to renegotiate the terms of
the NAFTA to provide for the implementation of
emergency adjustments of tariffs, quotas, and other
measures to mitigate the adverse effects of rapid or
substantial changes in exchange rates between the
United States dollar and the currency of another
NAFTA party.
HR 3314 IH
SEC. 103. REPORTS ASSESSING THE IMPACT OF NAFTA ON
JOBS AND THE ENVIRONMENT.
(a) IN GENERAL.—The Secretary of Commerce and
the Administrator of the Environmental Protection Agen-
cy are authorized and directed to conduct the studies as
described in this subsection and submit them to the Con-
gress by December 31, 1996:
(1) REPORT
ON
DOMESTIC
MANUFACTURING
AND JOBS.—The Secretary of Commerce, after con-
sultation with the appropriate government agencies,
shall determine the levels of exports of United States
manufactured goods to the NAFTA parties and im-
ports of manufactured goods from NAFTA parties,
and the number of jobs that have resulted from in-
creased exports of manufactured goods to NAFTA
parties and the loss of jobs that have resulted from
increased imports of manufactured goods from
NAFTA parties since January 1, 1994.
(2) REPORT RELATING TO HEALTH AND ENVI-
RONMENTAL
IMPACTS
OF
NAFTA.—The Adminis-
trator of the Environmental Protection Agency, in
consultation with the Secretariat for the NAFTA
Commission on Environmental Cooperation, shall
conduct investigations on whether pollution and
health hazards have worsened since January 1, 1994
and report to the Congress on the outcomes of the