SECTION 1. FINDINGS. 
Congress makes the following findings: 
(1) The United States has run persistent trade 
deficits since 1978, and many of such trade deficits 
since 2000 have been especially large. 
(2) There appeared to be some improvements in 
the United States trade balance in 2009, but this 
was during a time of global economic crisis, and the 
reduction in the United States trade deficit appears 
to be attributable to a shrinking United States de-
mand for imports rather than an increase in United 
States exports. 
(3) Many of the trade deficits are structural— 
that is, with the same countries, year after year. In 
2009, the United States continued to have signifi-
cant merchandise trade deficits with the People’s 
Republic of China ($226.8 billion), the European 
Union ($60.5 billion), Japan ($44.7 billion), and 
Mexico ($47.5 billion), notwithstanding the overall 
decline in the United States trade deficit. In fact, in 
2009, China accounted for 44 percent of the United 
States merchandise trade deficit. 
(4) While the United States has one of the 
most open borders and economies in the world, the 
United States faces significant tariff and non tariff 
trade barriers with its trading partners.
(5) The causes and consequences of the United 
States trade deficit must be documented and rec-
ommendations must be developed to expeditiously 
address structural imbalances in the trade deficit. 
SEC. 2. ESTABLISHMENT OF COMMISSION. 
(a) ESTABLISHMENT.—There is established a com-
mission to be known as the Emergency Trade Deficit 
Commission (in this Act referred to as the ‘‘Commis-
sion’’). 
(b) MEMBERSHIP OF COMMISSION.— 
(1) COMPOSITION.—The Commission shall be 
composed of 11 members, of whom— 
(A) three persons shall be appointed by the 
President, of whom one shall be appointed to 
represent labor interests, one shall be appointed 
to represent small businesses, and one shall be 
appointed to represent manufacturing interests; 
(B) two persons shall be appointed by the 
President pro tempore of the Senate upon the 
recommendation of the Majority Leader of the 
Senate, after consultation with the Chairman of 
the Committee on Finance of the Senate; 
(C) two persons shall be appointed by the 
President pro tempore of the Senate upon the 
recommendation of the Minority Leader of the
Senate, after consultation with the ranking mi-
nority member of the Committee on Finance of 
the Senate; 
(D) two persons shall be appointed by the 
Speaker of the House of Representatives, after 
consultation with the Chairman of the Com-
mittee on Ways and Means of the House of 
Representatives; and 
(E) two persons shall be appointed by the 
Minority Leader of the House of Representa-
tives, after consultation with the ranking minor-
ity member of the Committee on Ways and 
Means of the House of Representatives. 
(2) QUALIFICATIONS OF MEMBERS.— 
(A) PRESIDENTIAL
APPOINTMENTS.—Of 
the persons appointed under paragraph (1)(A), 
not more than one may be an officer, employee, 
or paid consultant of the executive branch. 
(B) OTHER APPOINTMENTS.—Persons ap-
pointed under subparagraph (B), (C), (D), or 
(E) of paragraph (1) shall be persons who— 
(i) have expertise in economics, inter-
national trade, manufacturing, labor, envi-
ronment, or business, or have other perti-
nent qualifications or experience; and
(ii) are not officers or employees of 
the United States. 
(C) OTHER CONSIDERATIONS.—In appoint-
ing members of the Commission, every effort 
shall be made to ensure that the members— 
(i) are representative of a broad cross- 
section of economic and trade perspectives 
within the United States; and 
(ii) provide fresh insights to in identi-
fying the causes and consequences of the 
United States trade deficit and developing 
recommendations to address structural 
trade imbalances. 
(c) PERIOD OF APPOINTMENT; VACANCIES.— 
(1) IN GENERAL.—Members shall be appointed 
not later than 60 days after the date of the enact-
ment of this Act and the appointment shall be for 
the life of the Commission. 
(2) VACANCIES.—Any vacancy in the Commis-
sion shall not affect its powers, but shall be filled in 
the same manner as the original appointment was 
made. 
(d) INITIAL MEETING.—Not later than 30 days after 
the date on which all members of the Commission have
been appointed, the Commission shall hold its first meet-
ing. 
(e) MEETINGS.—The Commission shall meet at the 
call of the Chairperson. 
(f) CHAIRPERSON
AND VICE CHAIRPERSON.—The 
members of the Commission shall elect a chairperson and 
vice chairperson from among the members of the Commis-
sion. 
(g) QUORUM.—A majority of the members of the 
Commission shall constitute a quorum for the transaction 
of business. 
(h) VOTING.—Each member of the Commission shall 
be entitled to one vote, which shall be equal to the vote 
of every other member of the Commission. 
SEC. 3. DUTIES OF THE COMMISSION. 
(a) IN GENERAL.—The Commission shall be respon-
sible for examining the nature, causes, and consequences 
of the United States trade deficit and providing rec-
ommendations on how to address and reduce structural 
trade imbalances, including with respect to the United 
States merchandise trade deficit, in order to promote sus-
tainable economic growth that provides broad-based in-
come and employment gains.
(b) CAUSES OF U.S. TRADE DEFICIT.—In examining 
the causes of the United States trade deficit, the Commis-
sion shall, among other things— 
(1) identify and assess the impact of macro-
economic factors, including currency practices, for-
eign government purchases of United States assets, 
and savings and investment rates, including savings 
rates of foreign state-owned enterprises, on United 
States bilateral trade imbalances and global trade 
imbalances; 
(2) with respect to countries with which the 
United States has significant, persistent sectoral or 
bilateral trade deficits, assess with respect to the 
magnitude and composition of such trade deficits— 
(A) the impact of tariff and non tariff bar-
riers maintained by such countries and the lack 
of reciprocal market access as a result of such 
barriers; 
(B) the impact of investment, offset, and 
technology transfer requirements by such coun-
tries; 
(C) any impact due to the failure of such 
countries to adhere to internationally-recognized 
labor standards, including the extent to which 
such failure affects conditions of competition
with the United States or the ability of con-
sumers in such countries to buy United States 
goods and services; 
(D) any impact due to differences in levels 
of environmental protection and enforcement of 
environmental laws between such countries and 
the United States, including the extent to which 
such differences affect conditions of competition 
with the United States; 
(E) policies maintained by such countries 
that assist manufacturers in such countries, in-
cluding the impact of such policies on manufac-
turers in the United States; and 
(F) the impact of border tax adjustments 
by such countries; 
(3) examine the impact of free trade agree-
ments on the United States trade deficit; 
(4) examine the impact of investment flows 
both into and out of the United States on the trade 
deficit, including— 
(A) the impact of United States outbound 
investment on the United States trade deficit 
and on standards of living and production in 
the United States;
(B) the impact that the relocation of pro-
duction facilities overseas has on the United 
States trade deficit, including by reviewing 
major domestic plant closures over an appro-
priate representative period to determine how 
much production terminated from such closures 
was relocated offshore; 
(C) the impact of foreign direct investment 
in the United States on the United States trade 
deficit and on standards of living and produc-
tion in the United States; and 
(D) the impact of United States bilateral 
investment treaties, including bilateral invest-
ment treaties under negotiation, on the United 
States trade deficit; 
(5) examine the role and impact of imports of 
oil and other energy products on the United States 
trade deficit; and 
(6) assess the extent to which United States 
foreign policy interests influence United States eco-
nomic and trade policies. 
(c) CONSEQUENCES OF U.S. TRADE DEFICIT.—In 
examining the consequences of the United States trade 
deficit, the Commission shall, among other things—
(1) identify and, to the extent practicable, 
quantify the impact of the trade deficit on the over-
all domestic economy, and, with respect to different 
sectors of the economy, on manufacturing capacity, 
on the number and quality of jobs, on wages, and 
on health, safety, and environmental standards; 
(2) assess the effects the trade deficits in the 
areas of manufacturing and technology have on de-
fense production and innovation capabilities of the 
United States; and 
(3) assess the impact of significant, persistent 
trade deficits, including sectoral and bilateral trade 
deficits, on United States economic growth. 
(d) RECOMMENDATIONS.—In making recommenda-
tions, the Commission shall, among other things— 
(1) identify specific strategies for achieving im-
proved trade balances with those countries with 
which the United States has significant, persistent 
sectoral or bilateral trade deficits; 
(2) identify United States trade policy tools in-
cluding enforcement mechanisms that can be more 
effectively used to address the underlying causes of 
structural trade deficits; 
(3) identify domestic and trade policies that can 
enhance the competitiveness of United States manu-
facturers domestically and globally, including those 
policies of the United States and other countries 
that have been successful in promoting competitive-
ness; 
(4) address ways to improve the coordination 
and accountability of Federal departments and agen-
cies relating to trade; and 
(5) examine ways to improve the adequacy of 
the collection and reporting of trade data, including 
identifying and developing additional databases and 
economic measurements that may be needed to prop-
erly assess the causes and consequences of the 
United States trade deficit. 
SEC. 4. REPORT. 
(a) REPORT.—Not later than 16 months after the 
date of the enactment of this Act, the Commission shall 
submit to the President and the Committee on Ways and 
Means of the House of Representatives and the Committee 
on Finance of the Senate a report that contains— 
(1) the findings and conclusions of the Commis-
sion described in section 3; and 
(2) any recommendations for administrative 
and legislative actions as the Commission considers 
necessary.
(b) SEPARATE VIEWS.—Any member of the Commis-
sion may submit additional findings and recommendations 
as part of the report. 
SEC. 5. POWERS OF COMMISSION. 
(a) HEARINGS.—The Commission may hold such 
hearings, sit and act at such times and places, take such 
testimony, and receive such evidence as the Commission 
considers advisable to carry out this Act. The Commission 
shall hold at least seven public hearings, one or more in 
Washington, D.C., and four in different regions of the 
United States. 
(b) INFORMATION FROM FEDERAL AGENCIES.—The 
Commission may secure directly from any Federal depart-
ment or agency such information as the Commission con-
siders necessary to carry out this Act. Upon request of 
the Chairperson of the Commission, the head of such de-
partment or agency shall furnish such information to the 
Commission. 
(c) POSTAL SERVICES.—The Commission may use 
the United States mails in the same manner and under 
the same conditions as other Federal departments and 
agencies. 
SEC. 6. COMMISSION PERSONNEL MATTERS. 
(a) COMPENSATION OF MEMBERS.—Each member of 
the Commission who is not an officer or employee of the
Federal Government shall be compensated at a rate equal 
to the daily equivalent of the annual rate of basic pay pre-
scribed for level IV of the Executive Schedule under sec-
tion 5315 of title 5, United States Code, for each day (in-
cluding travel time) during which such member is engaged 
in the performance of the duties of the Commission. All 
members of the Commission who are officers or employees 
of the United States shall serve without compensation in 
addition to that received for their services as officers or 
employees of the United States. 
(b) TRAVEL EXPENSES.—The members of the Com-
mission shall be allowed travel expenses, including per 
diem in lieu of subsistence, at rates authorized for employ-
ees of agencies under subchapter I of chapter 57 of title 
5, United States Code, while away from their homes or 
regular places of business in the performance of duties of 
the Commission. 
(c) STAFF.— 
(1) IN
GENERAL.—The Chairperson of the 
Commission may, without regard to the civil service 
laws and regulations, appoint and terminate an exec-
utive director and such other additional personnel as 
may be necessary to enable the Commission to per-
form its duties. The employment of an executive di-
rector shall be subject to confirmation by the Com-
mission. 
(2) COMPENSATION.—The Chairperson of the 
Commission may fix the compensation of the execu-
tive director and other personnel without regard to 
the provisions of chapter 51 and subchapter III of 
chapter 53 of title 5, United States Code, relating 
to classification of positions and General Schedule 
pay rates, except that the rate of pay for the execu-
tive director and other personnel may not exceed the 
rate payable for level V of the Executive Schedule 
under section 5316 of such title. 
(d) DETAIL
OF GOVERNMENT EMPLOYEES.—Any 
Federal Government employee may be detailed to the 
Commission without reimbursement, and such detail shall 
be without interruption or loss of civil service status or 
privilege. 
(e) PROCUREMENT OF TEMPORARY AND INTERMIT-
TENT SERVICES.—The Chairperson of the Commission 
may procure temporary and intermittent services under 
section 3109(b) of title 5, United States Code, at rates 
for individuals which do not exceed the daily equivalent 
of the annual rate of basic pay prescribed for level V of 
the Executive Schedule under section 5316 of such title.
SEC. 7. AUTHORIZATION OF APPROPRIATIONS; GAO AUDIT. 
(a) IN GENERAL.—There are authorized to be appro-
priated $2,000,000 to the Commission to carry out this 
Act. 
(b) GAO AUDIT.—Not later than 6 months after the 
date on which the Commission terminates, the Comptroller 
General of the United States shall complete an audit of 
the financial books and records of the Commission and 
shall submit a report on the audit to the President and 
the Congress. 
SEC. 8. TERMINATION OF COMMISSION. 
The Commission shall terminate 30 days after the 
date on which the Commission submits its report under 
section 4(a). 
Passed the House of Representatives July 28, 2010. 
Attest: 
Clerk.
111TH CONGRESS 
2D SESSION 
H. R. 1875 
AN ACT 
To establish the Emergency Trade Deficit 
Commission.