II
Calendar No. 319
107TH CONGRESS
2D SESSION
H. R. 3005
[Report No. 107–139]
IN THE SENATE OF THE UNITED STATES
DECEMBER 6, 2001
Received; read twice and referred to the Committee on Finance
FEBRUARY 28, 2002
Reported by Mr. BAUCUS, with an amendment
[Strike out all after the enacting clause and insert the part printed in italic]
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,
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,
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;
(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—
(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
(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.
(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;
(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-
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
(B) to ensure that such standards do not
place United States persons at a competitive
disadvantage in international trade.
(7) IMPROVEMENT OF THE WTO AND MULTI-
LATERAL TRADE AGREEMENTS.—The principal ne-
gotiating objectives of the United States regarding
the improvement of the World Trade Organization,
the Uruguay Round Agreements, and other multilat-
eral and bilateral trade agreements are—
(A) to achieve full implementation and ex-
tend the coverage of the World Trade Organiza-
tion and such agreements to products, sectors,
and conditions of trade not adequately covered;
and
(B) to expand country participation in and
enhancement of the Information Technology
Agreement and other trade agreements.
(8) REGULATORY
PRACTICES.—The principal
negotiating objectives of the United States regarding
the use of government regulation or other practices
by foreign governments to provide a competitive ad-
vantage to their domestic producers, service pro-
viders, or investors and thereby reduce market ac-
cess for United States goods, services, and invest-
ments are—
(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
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
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;
(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;
(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-
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
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.
(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
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
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—
(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).
(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
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-
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
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.
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.
(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,
(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
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
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-
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
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
(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
(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.
(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
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
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
(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-
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
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—
(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;
(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
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.—
(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
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-
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
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
(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;
(III) how the agreement serves
the interests of United States com-
merce;
(IV) how the implementing bill
meets the standards set forth in sec-
tion 3(b)(3); and
(V) how and to what extent the
agreement makes progress in achiev-
ing the applicable purposes, policies,
and objectives referred to in section
2(c) regarding the promotion of cer-
tain priorities.
(3) RECIPROCAL BENEFITS.—In order to en-
sure that a foreign country that is not a party to a
trade agreement entered into under section 3(b)
does not receive benefits under the agreement unless
the country is also subject to the obligations under
the agreement, the implementing bill submitted with
respect to the agreement shall provide that the bene-
fits and obligations under the agreement apply only
to the parties to the agreement, if such application
is consistent with the terms of the agreement. The
implementing bill may also provide that the benefits
and obligations under the agreement do not apply
uniformly to all parties to the agreement, if such ap-
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
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;
(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-
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.
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
(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:
(A) The chairman and ranking member of
the Committee on Ways and Means, and 3 ad-
ditional members of such Committee (not more
than 2 of whom are members of the same polit-
ical party).
(B) The chairman and ranking member, or
their designees, of the committees of the House
of Representatives which would have, under the
Rules of the House of Representatives, jurisdic-
tion over provisions of law affected by a trade
agreement negotiations for which are conducted
at any time during that Congress and to which
this Act would apply.
(3) MEMBERSHIP FROM THE SENATE.—In each
Congress, the Congressional Oversight Group shall
also be comprised of the following members of the
Senate:
(A) The chairman and ranking Member of
the Committee on Finance and 3 additional
members of such Committee (not more than 2
of whom are members of the same political
party).
(B) The chairman and ranking member, or
their designees, of the committees of the Senate
which would have, under the Rules of the Sen-
ate, jurisdiction over provisions of law affected
by a trade agreement negotiations for which are
conducted at any time during that Congress
and to which this Act would apply.
(4)
ACCREDITATION.—Each
member
of
the
Congressional Oversight Group described in para-
graph (2)(A) and (3)(A) shall be accredited by the
United States Trade Representative on behalf of the
President as official advisers to the United States
delegation in negotiations for any trade agreement
to which this Act applies. Each member of the Con-
gressional Oversight Group described in paragraph
(2)(B) and (3)(B) shall be accredited by the United
States Trade Representative on behalf of the Presi-
dent as official advisers to the United States delega-
tion in the negotiations by reason of which the mem-
ber is in the Congressional Oversight Group. The
Congressional Oversight Group shall consult with
and provide advice to the Trade Representative re-
garding the formulation of specific objectives, negoti-
ating strategies and positions, the development of
the applicable trade agreement, and compliance and
enforcement of the negotiated commitments under
the trade agreement.
(5)
CHAIR.—The
Congressional
Oversight
Group shall be chaired by the Chairman of the Com-
mittee on Ways and Means of the House of Rep-
resentatives and the Chairman of the Committee on
Finance of the Senate.
(b) GUIDELINES.—
(1)
PURPOSE
AND
REVISION.—The
United
States Trade Representative, in consultation with
the chairmen and ranking minority members of the
Committee on Ways and Means of the House of
Representatives and the Committee on Finance of
the Senate—
(A) shall, within 120 days after the date of
the enactment of this Act, develop written
guidelines to facilitate the useful and timely ex-
change of information between the Trade Rep-
resentative and the Congressional Oversight
Group established under this section; and
(B) may make such revisions to the guide-
lines as may be necessary from time to time.
(2) CONTENT.—The guidelines developed under
paragraph
(1)
shall
provide
for,
among
other
things—
(A) regular, detailed briefings of the Con-
gressional Oversight Group regarding negoti-
ating objectives, including the promotion of cer-
tain priorities referred to in section 2(c), and
positions and the status of the applicable nego-
tiations, beginning as soon as practicable after
the Congressional Oversight Group is convened,
with more frequent briefings as trade negotia-
tions enter the final stage;
(B) access by members of the Congres-
sional Oversight Group, and staff with proper
security clearances, to pertinent documents re-
lating to the negotiations, including classified
materials;
(C) the closest practicable coordination be-
tween the Trade Representative and the Con-
gressional Oversight Group at all critical peri-
ods during the negotiations, including at nego-
tiation sites; and
(D) after the applicable trade agreement is
concluded, consultation regarding ongoing com-
pliance and enforcement of negotiated commit-
ments under the trade agreement.
(c) REQUEST FOR MEETING.—Upon the request of
a majority of the Congressional Oversight Group, the
President shall meet with the Congressional Oversight
Group before initiating negotiations with respect to a
trade agreement, or at any other time concerning the ne-
gotiations.
SEC.
8.
ADDITIONAL
IMPLEMENTATION
AND
ENFORCE-
MENT REQUIREMENTS.
(a) IN GENERAL.—At the time the President submits
to the Congress the final text of an agreement pursuant
to section 5(a)(1)(C), the President shall also submit a
plan for implementing and enforcing the agreement. The
implementation and enforcement plan shall include the fol-
lowing:
(1) BORDER
PERSONNEL
REQUIREMENTS.—A
description of additional personnel required at bor-
der entry points, including a list of additional cus-
toms and agricultural inspectors.
(2) AGENCY STAFFING REQUIREMENTS.—A de-
scription of additional personnel required by Federal
agencies
responsible
for
monitoring
and
imple-
menting the trade agreement, including personnel
required by the Office of the United States Trade
Representative, the Department of Commerce, the
Department of Agriculture (including additional per-
sonnel
required
to
implement
sanitary
and
phytosanitary measures in order to obtain market
access for United States exports), the Department of
the Treasury, and such other agencies as may be
necessary.
(3)
CUSTOMS
INFRASTRUCTURE
REQUIRE-
MENTS.—A description of the additional equipment
and facilities needed by the United States Customs
Service.
(4) IMPACT
ON
STATE
AND
LOCAL
GOVERN-
MENTS.—A description of the impact the trade
agreement will have on State and local governments
as a result of increases in trade.
(5) COST ANALYSIS.—An analysis of the costs
associated with each of the items listed in para-
graphs (1) through (4).
(b) BUDGET SUBMISSION.—The President shall in-
clude a request for the resources necessary to support the
plan described in subsection (a) in the first budget that
the President submits to the Congress after the submis-
sion of the plan.
SEC. 9. COMMITTEE STAFF.
The grant of trade promotion authority under this
Act is likely to increase the activities of the primary com-
mittees of jurisdiction in the area of international trade.
In addition, the creation of the Congressional Oversight
Group under section 7 will increase the participation of
a broader number of Members of Congress in the formula-
tion of United States trade policy and oversight of the
international trade agenda for the United States. The pri-
mary committees of jurisdiction should have adequate
staff to accommodate these increases in activities.
SEC. 10. CONFORMING AMENDMENTS.
(a) IN GENERAL.—Title I of the Trade Act of 1974
(19 U.S.C. 2111 et seq.) is amended as follows:
(1) IMPLEMENTING BILL.—
(A)
Section
151(b)(1)
(19
U.S.C.
2191(b)(1)) is amended by striking ‘‘section
1103(a)(1) of the Omnibus Trade and Competi-
tiveness Act of 1988, or section 282 of the Uru-
guay Round Agreements Act’’ and inserting
‘‘section 282 of the Uruguay Round Agree-
ments Act, or section 5(a)(1) of the Bipartisan
Trade Promotion Authority Act of 2001’’.
(B)
Section
151(c)(1)
(19
U.S.C.
2191(c)(1)) is amended by striking ‘‘or section
282 of the Uruguay Round Agreements Act’’
and inserting ‘‘, section 282 of the Uruguay
Round Agreements Act, or section 5(a)(1) of
the Bipartisan Trade Promotion Authority Act
of 2001’’.
(2) ADVICE FROM INTERNATIONAL TRADE COM-
MISSION.—Section
131
(19
U.S.C.
2151)
is
amended—
(A) in subsection (a)—
(i) in paragraph (1), by striking ‘‘sec-
tion 123 of this Act or section 1102 (a) or
(c) of the Omnibus Trade and Competitive-
ness Act of 1988,’’ and inserting ‘‘section
123 of this Act or section 3(a) or (b) of
the Bipartisan Trade Promotion Authority
Act of 2001,’’; and
(ii) in paragraph (2), by striking ‘‘sec-
tion 1102 (b) or (c) of the Omnibus Trade
and Competitiveness Act of 1988’’ and in-
serting ‘‘section 3(b) of the Bipartisan
Trade Promotion Authority Act of 2001’’;
(B) in subsection (b), by striking ‘‘section
1102(a)(3)(A)’’
and
inserting
‘‘section
3(a)(3)(A) of the Bipartisan Trade Promotion
Authority Act of 2001’’; and
(C) in subsection (c), by striking ‘‘section
1102 of the Omnibus Trade and Competitive-
ness Act of 1988,’’ and inserting ‘‘section 3 of
the Bipartisan Trade Promotion Authority Act
of 2001,’’.
(3) HEARINGS
AND
ADVICE.—Sections 132,
133(a), and 134(a) (19 U.S.C. 2152, 2153(a), and
2154(a)) are each amended by striking ‘‘section
1102 of the Omnibus Trade and Competitiveness
Act of 1988,’’ each place it appears and inserting
‘‘section 3 of the Bipartisan Trade Promotion Au-
thority Act of 2001,’’.
(4)
PREREQUISITES
FOR
OFFERS.—Section
134(b) (19 U.S.C. 2154(b)) is amended by striking
‘‘section 1102 of the Omnibus Trade and Competi-
tiveness Act of 1988’’ and inserting ‘‘section 3 of the
Bipartisan
Trade
Promotion
Authority
Act
of
2001’’.
(5) ADVICE FROM PRIVATE AND PUBLIC SEC-
TORS.—Section 135 (19 U.S.C. 2155) is amended—
(A) in subsection (a)(1)(A), by striking
‘‘section 1102 of the Omnibus Trade and Com-
petitiveness Act of 1988’’ and inserting ‘‘section
3 of the Bipartisan Trade Promotion Authority
Act of 2001’’;
(B) in subsection (e)(1)—
(i) by striking ‘‘section 1102 of the
Omnibus Trade and Competitiveness Act
of 1988’’ each place it appears and insert-
ing ‘‘section 3 of the Bipartisan Trade
Promotion Authority Act of 2001’’; and
(ii) by striking ‘‘section 1103(a)(1)(A)
of such Act of 1988’’ and inserting ‘‘sec-
tion 5(a)(1)(A) of the Bipartisan Trade
Promotion Authority Act of 2001’’; and
(C) in subsection (e)(2), by striking ‘‘sec-
tion 1101 of the Omnibus Trade and Competi-
tiveness Act of 1988’’ and inserting ‘‘section 2
of the Bipartisan Trade Promotion Authority
Act of 2001’’.
(6) TRANSMISSION OF AGREEMENTS TO CON-
GRESS.—Section 162(a) (19 U.S.C. 2212(a)) is
amended by striking ‘‘or under section 1102 of the
Omnibus Trade and Competitiveness Act of 1988’’
and inserting ‘‘or under section 3 of the Bipartisan
Trade Promotion Authority Act of 2001’’.
(b) APPLICATION
OF CERTAIN PROVISIONS.—For
purposes of applying sections 125, 126, and 127 of the
Trade Act of 1974 (19 U.S.C. 2135, 2136(a), and
2137)—
(1) any trade agreement entered into under sec-
tion 3 shall be treated as an agreement entered into
under section 101 or 102, as appropriate, of the
Trade Act of 1974 (19 U.S.C. 2111 or 2112); and
(2) any proclamation or Executive order issued
pursuant to a trade agreement entered into under
section 3 shall be treated as a proclamation or Exec-
utive order issued pursuant to a trade agreement en-
tered into under section 102 of the Trade Act of
1974.
SEC. 11. DEFINITIONS.
In this Act:
(1) AGREEMENT ON AGRICULTURE.—The term
‘‘Agreement on Agriculture’’ means the agreement
referred to in section 101(d)(2) of the Uruguay
Round Agreements Act (19 U.S.C. 3511(d)(2)).
(2) CORE LABOR STANDARDS.—The term ‘‘core
labor standards’’ means—
(A) the right of association;
(B) the right to organize and bargain col-
lectively;
(C) a prohibition on the use of any form
of forced or compulsory labor;
(D) a minimum age for the employment of
children; and
(E) acceptable conditions of work with re-
spect to minimum wages, hours of work, and
occupational safety and health.
(3) GATT 1994.—The term ‘‘GATT 1994’’ has
the meaning given that term in section 2 of the Uru-
guay Round Agreements Act (19 U.S.C. 3501).
(4) ILO.—The term ‘‘ILO’’ means the Inter-
national Labor Organization.
(5)
UNITED
STATES
PERSON.—The
term
‘‘United States person’’ means—
(A) a United States citizen;
(B) a partnership, corporation, or other
legal entity organized under the laws of the
United States; and
(C) a partnership, corporation, or other
legal entity that is organized under the laws of
a foreign country and is controlled by entities
described in subparagraph (B) or United States
citizens, or both.
(6) URUGUAY ROUND AGREEMENTS.—The term
‘‘Uruguay Round Agreements’’ has the meaning
given that term in section 2(7) of the Uruguay
Round Agreements Act (19 U.S.C. 3501(7)).
(7) WORLD TRADE ORGANIZATION; WTO.—The
terms ‘‘World Trade Organization’’ and ‘‘WTO’’
mean the organization established pursuant to the
WTO Agreement.
(8)
WTO
AGREEMENT.—The
term
‘‘WTO
Agreement’’ means the Agreement Establishing the
World Trade Organization entered into on April 15,
1994.
SECTION 1. SHORT TITLE; FINDINGS.
(a) SHORT TITLE.—This Act may be cited as the ‘‘Bi-
partisan Trade Promotion Authority Act of 2002’’.
(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. Sta-
ble trading relationships promote security and pros-
perity. Trade agreements today serve the same pur-
poses 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, de-
mocracy, 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, medical equip-
ment, services, agriculture, environmental technology,
and intellectual property. Trade will create new op-
portunities for the United States and preserve the un-
paralleled strength of the United States in economic,
political, and military affairs. The United States, se-
cured by expanding trade and economic opportuni-
ties, will meet the challenges of the twenty-first cen-
tury.
(3) Support for continued trade expansion re-
quires that dispute settlement procedures under inter-
national trade agreements not add to or diminish the
rights and obligations provided in such agreements.
Nevertheless, in several cases, dispute settlement pan-
els and the WTO Appellate Body have added to obli-
gations and diminished rights of the United States
under WTO Agreements. In particular, dispute settle-
ment panels and the Appellate Body have—
(A) given insufficient deference to the exper-
tise and fact-finding of the Department of Com-
merce and the United States International Trade
Commission;
(B) imposed an obligation concerning the
causal relationship between increased imports
into the United States and serious injury to do-
mestic industry necessary to support a safeguard
measure that is different from the obligation set
forth in the applicable WTO Agreements;
(C) imposed an obligation concerning the
exclusion from safeguards measures of products
imported from countries party to a free trade
agreement that is different from the obligation
set forth in the applicable WTO Agreements;
(D) imposed obligations on the Department
of Commerce with respect to the use of facts
available in antidumping investigations that are
different from the obligations set forth in the ap-
plicable WTO Agreements; and
(E) accorded insufficient deference to the
Department of Commerce’s methodology for ad-
justing countervailing duties following the pri-
vatization of a subsidized foreign producer.
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 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;
(4) to foster economic growth, raise living stand-
ards, 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 13(2)) and an understanding of the rela-
tionship between trade and worker rights;
(7) to seek provisions in trade agreements under
which parties to those agreements strive to ensure that
they do not weaken or reduce the protections afforded
in domestic environmental and labor laws as an en-
couragement for trade; and
(8) to ensure that trade agreements afford small
businesses equal access to international markets, equi-
table trade benefits, expanded export market opportu-
nities, and provide for the reduction or elimination of
trade barriers that disproportionately impact small
business.
(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 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 mar-
ket access or unreasonably restrict the establishment
or operations of service suppliers.
(3) FOREIGN
INVESTMENT.—Recognizing that
United States law on the whole provides a high level
of protection for investment, consistent with or great-
er than the level required by international law, the
principal negotiating objectives of the United States
regarding foreign investment are to reduce or elimi-
nate artificial or trade-distorting barriers to trade-re-
lated foreign investment, while ensuring that United
States investors in the United States are not accorded
lesser rights than foreign investors in the United
States, and 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 re-
quirements, forced technology transfers, 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;
(E) seeking to establish standards for fair
and equitable treatment consistent with United
States legal principles and practice, including
the principle of due process;
(F) providing meaningful procedures for re-
solving investment disputes;
(G) seeking to improve mechanisms used to
resolve disputes between an investor and a gov-
ernment through—
(i) mechanisms to eliminate frivolous
claims and to deter the filing of frivolous
claims;
(ii) procedures to ensure the efficient
selection of arbitrators and the expeditious
disposition of claims;
(iii) procedures to enhance opportuni-
ties for public input into the formulation of
government positions; and
(iv) establishment of a single appellate
body to review decisions in investor-to-gov-
ernment disputes and thereby provide coher-
ence to the interpretations of investment
provisions in trade agreements; and
(H) ensuring the fullest measure of trans-
parency in the dispute settlement mechanism, to
the extent consistent with the need to protect in-
formation that is classified or business confiden-
tial, 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 nongovernmental or-
ganizations.
(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)(1 5) of the Uru-
guay Round Agreements Act (19 U.S.C.
3511(d)(15)), particularly with respect to
meeting enforcement 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 re-
flect 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;
(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;
(iv) ensuring that standards of protec-
tion and enforcement keep pace with techno-
logical developments, and in particular en-
suring 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 pre-
vent the unauthorized use of their works;
and
(v) providing strong enforcement of in-
tellectual property rights, including through
accessible, expeditious, and effective civil,
administrative, and criminal enforcement
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 wider and broader application
of the principle of transparency through—
(A) increased and more timely public access
to information regarding trade issues and the ac-
tivities of international trade institutions;
(B) increased openness at the WTO and
other international trade fora by increasing pub-
lic access to appropriate meetings, proceedings,
and submissions, including with regard to dis-
pute settlement and investment; and
(C) increased and more timely public access
to all notifications and supporting documenta-
tion 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 influence
acts, decisions, or omissions of foreign governments or
officials or to secure any improper advantage 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
(B) to ensure that such standards do not
place United States persons at a competitive dis-
advantage in international trade.
(7) IMPROVEMENT OF THE WTO AND MULTILAT-
ERAL
TRADE
AGREEMENTS.—The principal negoti-
ating objectives of the United States regarding the im-
provement of the World Trade Organization, the Uru-
guay Round Agreements, and other multilateral and
bilateral trade agreements are—
(A) to achieve full implementation and ex-
tend the coverage of the World Trade Organiza-
tion and such agreements to products, sectors,
and conditions of trade not adequately covered;
and
(B) to expand country participation in and
enhancement of the Information Technology
Agreement and other trade agreements.
(8) REGULATORY PRACTICES.—The principal ne-
gotiating objectives of the United States regarding the
use of government regulation or other practices by for-
eign governments to provide a competitive advantage
to their domestic producers, service providers, or in-
vestors and thereby reduce market access for United
States goods, services, and investments are—
(A) to achieve increased transparency and
opportunity for the participation of affected par-
ties 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 ne-
gotiating objectives of the United States with respect
to electronic commerce are—
(A) to ensure that current obligations, rules,
disciplines, and commitments under the World
Trade Organization apply to electronic com-
merce;
(B) to ensure that—
(i) electronically delivered goods and
services receive no less favorable treatment
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 treat-
ment possible;
(C) to ensure that governments refrain from
implementing trade-related measures that im-
pede 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 pro-
mote 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) IN
GENERAL.—The principal negoti-
ating objective of the United States with respect
to agriculture is to obtain competitive opportuni-
ties for United States exports of agricultural
commodities in foreign markets substantially
equivalent to the competitive opportunities af-
forded foreign exports in United States markets
and 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
certain, tariffs or other charges that de-
crease market opportunities for United
States exports—
(I) giving priority to those prod-
ucts that are subject to significantly
higher tariffs or subsidy regimes of
major producing countries; and
(II) providing reasonable adjust-
ment periods for United States import-
sensitive products, in close consultation
with the Congress on such products be-
fore initiating tariff reduction negotia-
tions;
(ii) reducing tariffs to levels that are
the same as or lower than those in the
United States;
(iii) seeking to eliminate all export
subsidies on agricultural commodities while
maintaining bona fide food aid and pre-
serving United States agricultural market
development and export credit programs
that allow the United States to compete
with other foreign export promotion efforts;
(iv) allowing the preservation of pro-
grams that support family farms and rural
communities but do not distort trade;
(v) developing disciplines for domestic
support programs, so that production that
is in excess of domestic food security needs
is sold at world prices;
(vi) eliminating Government policies
that create price-depressing surpluses;
(vii) eliminating state trading enter-
prises whenever possible;
(viii) developing, strengthening, and
clarifying rules and effective dispute settle-
ment mechanisms to eliminate practices
that unfairly decrease 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 ac-
tivities of state trading enterprises and
other administrative mechanisms, with
emphasis on requiring price trans-
parency in the operation of state trad-
ing enterprises and such other mecha-
nisms in order to end cross subsidiza-
tion, price discrimination, and price
undercutting;
(II) unjustified trade restrictions
or commercial requirements, such as
labeling, that affect new technologies,
including biotechnology;
(III) 
unjustified 
sanitary 
or
phytosanitary restrictions, including
those not based on scientific principles
in 
contravention 
of 
the 
Uruguay
Round Agreements;
(IV) other unjustified technical
barriers to trade; and
(V) restrictive rules in the admin-
istration of tariff rate quotas;
(ix) eliminating practices that ad-
versely affect trade in perishable or cyclical
products, while improving import relief
mechanisms to recognize the unique charac-
teristics of perishable and cyclical agri-
culture;
(x) ensuring that the use of import re-
lief mechanisms for perishable and cyclical
agriculture are as accessible and timely to
growers in the United States as those mech-
anisms that are used by other countries;
(xi) taking into account whether a
party to the negotiations has failed to ad-
here to the provisions of already existing
trade agreements with the United States or
has circumvented obligations 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 al-
ready 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 Organiza-
tion have made meaningful market liberal-
ization commitments in agriculture;
(xiv) taking into account the impact
that agreements covering agriculture to
which the United States is a party, includ-
ing the North American Free Trade Agree-
ment, have on the United States agricul-
tural industry;
(xv) maintaining bona fide food assist-
ance programs and preserving United
States market development and export cred-
it programs; and
(xvi) strive to complete a general mul-
tilateral round in the World Trade Organi-
zation by January 1, 2005, and seek the
broadest market access possible in multilat-
eral, regional, and bilateral negotiations,
recognizing the effect that simultaneous sets
of negotiations may have on United States
import-sensitive 
commodities 
(including
those subject to tariff-rate quotas).
(B) CONSULTATION.—
(i) BEFORE
COMMENCING
NEGOTIA-
TIONS.—Before 
commencing 
negotiations
with respect to agriculture, the United
States Trade Representative, in consulta-
tion with the Congress, shall seek to develop
a position on the treatment of seasonal and
perishable agricultural products to be em-
ployed in the negotiations in order to de-
velop an international consensus on the
treatment of seasonal or perishable agricul-
tural products in investigations relating to
dumping and safeguards and in any other
relevant area.
(ii) DURING
NEGOTIATIONS.—During
any negotiations on agricultural subsidies,
the United States Trade Representative
shall seek to establish the common base year
for calculating the Aggregated Measurement
of Support (as defined in the Agreement on
Agriculture) as the end of each country’s
Uruguay Round implementation period, as
reported in each country’s Uruguay Round
market access schedule.
(iii) SCOPE OF OBJECTIVE.—The nego-
tiating objective provided in subparagraph
(A) applies with respect to agricultural
matters to be addressed in any trade agree-
ment entered 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.
(11) LABOR AND THE ENVIRONMENT.—The prin-
cipal negotiating objectives of the United States with
respect to labor and the environment are—
(A) to ensure that a party to a trade agree-
ment with the United States does not fail to ef-
fectively 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 coun-
tries;
(B) to recognize that parties to a trade
agreement retain the right to exercise discretion
with respect to investigatory, prosecutorial, regu-
latory, and compliance matters and to make de-
cisions regarding the allocation of resources to
enforcement with respect to other labor or envi-
ronmental matters determined to have higher
priorities, and to recognize that a country is ef-
fectively enforcing its laws if a course of action
or inaction reflects a reasonable exercise of such
discretion, or results from a bona fide decision
regarding the allocation of resources and no re-
taliation may be authorized based on the exercise
of these rights or the right to establish domestic
labor standards and levels of environmental pro-
tection;
(C) to strengthen the capacity of United
States trading partners to promote respect for
core labor standards (as defined in section
13(2));
(D) to strengthen the capacity of United
States trading partners to protect the environ-
ment through the promotion of sustainable devel-
opment;
(E) to reduce or eliminate government prac-
tices or policies that unduly threaten sustainable
development;
(F) to seek market access, through the elimi-
nation 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
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 gov-
ernments under those trade agreements in an ef-
fective, timely, transparent, equitable, and rea-
soned manner, requiring determinations based
on facts and the principles of the agreements,
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 improved adherence by panels
convened under the WTO Understanding on
Rules and Procedures Governing the Settlement
of Disputes and by the WTO Appellate Body to
the standard of review applicable under the
WTO Agreement involved in the dispute, includ-
ing greater deference, where appropriate, to the
fact finding and technical expertise of national
investigating authorities;
(D) to seek provisions encouraging the early
identification and settlement of disputes through
consultation;
(E) to seek provisions to encourage the pro-
vision of trade-expanding compensation if a
party to a dispute under the agreement does not
come into compliance with its obligations under
the agreement;
(F) to seek provisions to impose a penalty
upon a party to a dispute under the agreement
that—
(i) encourages compliance with the ob-
ligations of the agreement;
(ii) is appropriate to the parties, na-
ture, subject matter, and scope of the viola-
tion; 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
(G) 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) BORDER TAXES.—The principal negotiating
objective of the United States regarding border taxes
is to obtain a revision of the WTO rules with respect
to the treatment of border adjustments for internal
taxes to redress the disadvantage to countries relying
primarily on direct taxes for revenue rather than in-
direct taxes.
(14) 
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 origin are
the conclusion of an agreement described in section
132 of that Act (19 U.S.C. 3552).
(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 promote
respect for core labor standards (as defined in section
13(2)), and report to the Committee on Ways and
Means of the House of Representatives and the Com-
mittee 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 develop
and implement standards for the protection of the en-
vironment 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 Ex-
ecutive Order 13141 of November 16, 1999 and the
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 re-
views;
(5) review the impact of future trade agreements
on United States employment, modeled after Execu-
tive Order 13141, and report to the Committee on
Ways and Means of the House of Representatives and
the Committee on Finance of the Senate on such re-
view;
(6) take into account other legitimate United
States domestic objectives including, but not limited
to, the protection of legitimate health or safety, essen-
tial 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 pro-
vide technical assistance to that country if needed;
(8) in connection with any trade negotiations
entered into under this Act, the President shall submit
to the Committee on Ways and Means of the House
of Representatives and the Committee on Finance of
the Senate a meaningful labor rights report of the
country, or countries, with respect to which the Presi-
dent is negotiating, on a time frame determined in
accordance with section 7(b)(2)(E);
(9)(A) preserve the ability of the United States
to enforce rigorously its trade laws, including the
antidumping, countervailing duty, and safeguard
laws, and avoid agreements that lessen the effective-
ness of domestic and international disciplines on un-
fair trade, especially dumping and subsidies, or that
lessen the effectiveness of domestic and international
safeguard provisions, 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; and
(B) address and remedy market distortions that
lead to dumping and subsidization, including over-
capacity, cartelization, and market-access barriers.
(10) continue to promote consideration of multi-
lateral 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 Com-
mittee on Finance of the Senate, not later than 12
months after the imposition of a penalty or remedy
by the United States permitted by a trade agreement
to which this Act applies, on the effectiveness of the
penalty or remedy applied under United 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 required under paragraph (11) shall address
whether the penalty or remedy was effective in changing
the behavior of the targeted party and whether the penalty
or remedy 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 Representatives
and the Senate with jurisdiction over laws that would
be affected by a trade agreement resulting from the
negotiations.
(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 negotiations,
the Committee on Agriculture of the House of
Representatives and the Committee on Agri-
culture, Nutrition, and Forestry of the Senate.
(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 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, 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,
(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 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 va-
100
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;
(B) reduces the rate of duty below that ap-
plicable under the Uruguay Round Agreements,
on any agricultural product which was the sub-
ject of tariff reductions by the United States as
a result of the Uruguay Round Agreements, for
which the rate of duty, pursuant to such Agree-
ments, 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 De-
cember 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)
101
shall not exceed the aggregate reduction which
would have been in effect on such day if—
(i) a reduction of 3 percent ad valorem
or a reduction of one-tenth of the total re-
duction, whichever is greater, had taken ef-
fect on the effective date of the first reduc-
tion 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
at 1-year intervals after the effective date of
such first reduction.
(B) EXEMPTION FROM STAGING.—No stag-
ing is required under subparagraph (A) with re-
spect to a duty reduction that is proclaimed
under paragraph (1) for an article of a kind
that is not produced in the United States. The
United States International Trade Commission
shall advise the President of the identity of arti-
cles that may be exempted from staging under
this subparagraph.
(4) ROUNDING.—If the President determines that
such action will simplify the computation of reduc-
tions under paragraph (3), the President may round
102
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 reduc-
tion that may not be proclaimed by reason of para-
graph (2) may take effect only if a provision author-
izing such reduction is included within an imple-
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 reduction
of any duty set forth in Schedule XX, as defined in
section 2(5) of that Act, if the United States agrees
to such modification or staged rate reduction in a ne-
gotiation for the reciprocal elimination or harmoni-
zation of duties under the auspices of the World Trade
Organization.
103
(7) AUTHORITY UNDER URUGUAY ROUND AGREE-
MENTS ACT NOT AFFECTED.—Nothing in this sub-
section shall limit the authority provided to the Presi-
dent under section 111(b) of the Uruguay Round
Agreements Act (19 U.S.C. 3521(b)).
(b) AGREEMENTS REGARDING TARIFF AND NONTARIFF
BARRIERS.—
(1) IN GENERAL.—
(A) 
DETERMINATION
BY
PRESIDENT.—
Whenever the President determines that—
(i) one or more existing duties or any
other import restriction of any foreign
country or the United States or any other
barrier to, or other distortion of, inter-
national trade unduly burdens or restricts
the foreign trade of the United States or ad-
versely 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
objectives of this Act will be promoted thereby,
the President may enter into a trade agreement
described in subparagraph (B) during the period
described in subparagraph (C).
104
(B) AGREEMENT TO REDUCE OR ELIMINATE
CERTAIN DISTORTION.—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 dis-
tortion.
(C) TIME
PERIOD.—The President may enter
into a trade agreement under this paragraph before—
(i) June 1, 2005; or
(ii) June 1, 2007, if trade authorities
procedures are extended under subsection
(c).
(2) CONDITIONS.—A trade agreement may be en-
tered into under this subsection only if such agree-
ment makes progress in meeting the applicable objec-
tives described in section 2(a) and (b) and the Presi-
dent satisfies the conditions set forth in section 4.
(3) BILLS QUALIFYING FOR TRADE AUTHORITIES
PROCEDURES.—
(A) APPLICATION
OF
EXPEDITED
PROCE-
DURES.—The provisions of section 151 of the
105
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
extent as such section 151 applies to imple-
menting bills under that section. A bill to which
this paragraph applies shall hereafter in this Act
be referred to as an ‘‘implementing bill’’.
(B) PROVISIONS
DESCRIBED.—The provi-
sions referred to in subparagraph (A) are—
(i) a provision approving a trade
agreement entered into under this subsection
and approving the statement of administra-
tive action, if any, proposed to implement
such trade agreement; and
(ii) if changes in existing laws or new
statutory authority are required to imple-
ment such trade agreement or agreements,
provisions, necessary or appropriate to im-
plement such trade agreement or agree-
ments, either repealing or amending exist-
ing laws or providing new statutory author-
ity.
(c) EXTENSION DISAPPROVAL PROCESS FOR CONGRES-
SIONAL TRADE AUTHORITIES PROCEDURES.—
106
(1) IN GENERAL.—Except as provided in section
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.
(2) REPORT
TO
CONGRESS
BY
THE
PRESI-
DENT.—If the President is of the opinion that the
trade authorities procedures should be extended to im-
plementing 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 re-
quest for such extension, together with—
(A) a description of all trade agreements
that have been negotiated under subsection (b)
107
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 justifies
the continuation of negotiations; and
(C) a statement of the reasons why the ex-
tension is needed to complete the negotiations.
(3) OTHER REPORTS TO CONGRESS.—
(A) REPORT
BY
THE
ADVISORY
COM-
MITTEE.—The President shall promptly inform
the Advisory Committee for Trade Policy and
Negotiations established under section 135 of the
Trade Act of 1974 (19 U.S.C. 2155) of the Presi-
dent’s decision to submit a report to the Congress
under paragraph (2). The Advisory Committee
shall submit to the Congress as soon as prac-
ticable, but not later than May 1, 2005, a writ-
ten report that contains—
(i) its views regarding the progress
that has been made in negotiations to
achieve the purposes, policies, priorities,
and objectives of this Act; and
108
(ii) a statement of its views, and the
reasons therefor, regarding whether the ex-
tension requested under paragraph (2)
should be approved or disapproved.
(B) REPORT BY ITC.—The President shall
promptly inform the International Trade Com-
mission of the President’s decision to submit a
report to the Congress under paragraph (2). The
International Trade Commission shall submit to
the Congress as soon as practicable, but not later
than May 1, 2005, a written report that contains
a review and analysis of the economic impact on
the United States of all trade agreements imple-
mented between the date of enactment of this Act
and the date on which the President decides to
seek an extension requested under paragraph (2).
(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) DEFINITION.—For purposes of para-
graph (1), the term ‘‘extension disapproval reso-
lution’’ means a resolution of either House of the
Congress, the sole matter after the resolving
109
clause of which is as follows: ‘‘That the ll dis-
approves the request of the President for the ex-
tension, under section 3(c)(1)(B)(i) of the Bipar-
tisan Trade Promotion Authority Act of 2002, of
the trade authorities procedures under that Act
to any implementing bill submitted with respect
to any trade agreement entered into under sec-
tion 3(b) of that Act after June 30, 2005.’’, with
the blank space being filled with the name of the
resolving House of the Congress.
(B) 
INTRODUCTION.—Extension 
dis-
approval 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
Representatives, to the Committee on Ways
and Means and, in addition, to the Com-
mittee on Rules.
(C) APPLICATION OF SECTION 152 OF THE
TRADE ACT OF 1974.—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 resolutions in the House
110
and Senate) apply to extension disapproval reso-
lutions.
(D) LIMITATIONS.—It is not in order for—
(i) the Senate to consider any exten-
sion disapproval resolution not reported by
the Committee on Finance;
(ii) the House of Representatives to
consider any extension disapproval resolu-
tion not reported by the Committee on Ways
and Means and, in addition, by the Com-
mittee on Rules; or
(iii) either House of the Congress to
consider 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 sectoral
agreements to countries that are not parties to those agree-
ments, in cases where the President determines that such
negotiations are feasible and timely and would benefit the
United States. Such sectors include agriculture, commercial
services, intellectual property rights, industrial and capital
goods, government procurement, information technology
111
products, environmental technology and services, medical
equipment and services, civil aircraft, and infrastructure
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 ini-
tiating negotiations, written notice to the Congress of
the President’s intention to enter into the negotiations
and set forth therein the date the President intends to
initiate such negotiations, the specific United States
objectives for the negotiations, and whether the Presi-
dent intends to seek an agreement, or changes to an
existing agreement;
(2) before and after submission of the notice, con-
sult regarding the negotiations with the Committee on
Finance of the Senate and the Committee on Ways
and Means of the House of Representatives, such other
committees of the House and Senate as the President
deems appropriate, and the Congressional Oversight
group convened under section 7; and
112
(3) upon the request of a majority of the mem-
bers of the Congressional Oversight Group under sec-
tion 7(c), meet with the Congressional Oversight
Group before initiating the negotiations or at any
other time concerning the negotiations.
(b) NEGOTIATIONS REGARDING AGRICULTURE
AND
FISHING INDUSTRY.—
(1) IN
GENERAL.—Before initiating or con-
tinuing negotiations the subject matter of which is di-
rectly 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
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 throughout
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 con-
sult with the Committee on Ways and Means and the
Committee on Agriculture of the House of Representa-
tives and the Committee on Finance and the Com-
mittee on Agriculture, Nutrition, and Forestry of the
Senate concerning the results of the assessment,
113
whether it is appropriate for the United States to
agree to further tariff reductions based on the conclu-
sions reached in the assessment, and how all applica-
ble negotiating objectives will be met.
(2) SPECIAL CONSULTATIONS ON IMPORT SEN-
SITIVE PRODUCTS.—
(A) IN GENERAL.—Before initiating nego-
tiations with regard to agriculture, and, with re-
spect to the Free Trade Area for the Americas
and negotiations with regard to agriculture
under the auspices of the World Trade Organiza-
tion, as soon as practicable after the enactment
of this Act, the United States Trade Representa-
tive shall—
(i) identify those agricultural products
subject to tariff-rate quotas on the date of
enactment of this Act, and agricultural
products subject 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;
114
(ii) consult with the Committee on
Ways and Means and the Committee on Ag-
riculture of the House of Representatives
and the Committee on Finance and the
Committee on Agriculture, Nutrition, and
Forestry of the Senate concerning—
(I) whether any further tariff re-
ductions 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;
(II) whether the products so iden-
tified face unjustified sanitary or
phytosanitary restrictions, including
those not based on scientific principles
in 
contravention 
of 
the 
Uruguay
Round Agreements; and
(III) whether the countries par-
ticipating in the negotiations maintain
export subsidies or other programs,
policies, or practices that distort world
trade in such products and the impact
of such programs, policies, and prac-
115
tices on United States producers of the
products;
(iii) request that the International
Trade Commission prepare an assessment of
the probable economic effects of any such
tariff reduction on the United States indus-
try 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 Ag-
riculture 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
reasons for seeking such tariff liberalization.
(B) IDENTIFICATION OF ADDITIONAL AGRI-
CULTURAL PRODUCTS.—If, after negotiations de-
scribed in subparagraph (A) are commenced—
(i) the United States Trade Represent-
ative identifies any additional agricultural
product described in subparagraph (A)(i)
116
for tariff reductions which were not the sub-
ject of a notification under subparagraph
(A)(iv), or
(ii) any additional agricultural prod-
uct described in subparagraph (A)(i) is the
subject of 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 sub-
paragraph (A)(iv) of those products and the rea-
sons for seeking such tariff reductions.
(3) NEGOTIATIONS REGARDING THE FISHING IN-
DUSTRY.—Before initiating, or continuing, negotia-
tions which directly relate to fish or shellfish trade
with any country, the President shall consult with the
Committee on Ways and Means and the Committee
on Resources of the House of Representatives, and the
Committee on Finance and the Committee on Com-
merce, Science, and Transportation of the Senate,
and shall keep the Committees apprised of negotia-
tions on an ongoing and timely basis.
(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
117
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 ne-
gotiation provides an opportunity to address any such dis-
parity. The President shall consult with the Committee on
Ways and Means of the House of Representatives and the
Committee on Finance of the Senate concerning the results
of the assessment, whether it is appropriate for the United
States to agree to further tariff reductions based on the con-
clusions reached in the assessment, and how all applicable
negotiating objectives will be met.
(d) CONSULTATION WITH CONGRESS BEFORE AGREE-
MENTS ENTERED INTO.—
(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 Committee
on Finance of the Senate;
(B) each other committee of the House and
the Senate, and each joint committee of the Con-
gress, which has jurisdiction over legislation in-
volving subject matters which would be affected
by the trade agreement; and
118
(C) the Congressional Oversight Group con-
vened under section 7.
(2) SCOPE.—The consultation described in para-
graph (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.
(3) REPORT REGARDING UNITED STATES TRADE
REMEDY LAWS.—
(A) CHANGES IN CERTAIN TRADE LAWS.—
The President, at least 90 calendar days before
the day on which the President enters into a
trade agreement, shall notify the Committee on
Ways and Means of the House of Representatives
and the Committee on Finance of the Senate in
writing of any amendments to title VII of the
Tariff Act of 1930 or chapter 1 of title II of the
Trade Act of 1974 that the President proposes to
include in a bill implementing such trade agree-
ment.
119
(B) EXPLANATION.—On the date that the
President transmits the notification, the Presi-
dent also shall transmit to the Committees a re-
port explaining—
(i) the President’s reasons for believing
that amendments to title VII of the Tariff
Act of 1930 or to chapter 1 of title II of the
Trade Act of 1974 are necessary to imple-
ment the trade agreement; and
(ii) the President’s reasons for believ-
ing that such amendments are consistent
with the purposes, policies, and objectives
described in section 2(c)(9).
(C) REPORT TO HOUSE.—Not later than 60
calendar days after the date on which the Presi-
dent transmits the notification described in sub-
paragraph (A), the Chairman and ranking mem-
ber of the Ways and Means Committee of the
House of Representatives, based on consultations
with the members of that Committee, shall issue
to the House of Representatives a report stating
whether the proposed amendments described in
the President’s notification are consistent with
the purposes, policies, and objectives described in
section 2(c)(9). In the event that the Chairman
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and ranking member disagree with respect to one
or more conclusions, the report shall contain the
separate views of the Chairman and ranking
member.
(D) REPORT TO SENATE.—Not later than
60 calendar days after the date on which the
President transmits the notification described in
subparagraph (A), the Chairman and ranking
member of the Finance Committee of the Senate,
based on consultations with the members of that
Committee, shall issue to the Senate a report
stating whether the proposed amendments de-
scribed in the President’s report are consistent
with the purposes, policies, and objectives de-
scribed in section 2(c)(9). In the event that the
Chairman and ranking member disagree with re-
spect to one or more conclusions, the report shall
contain the separate views of the Chairman and
ranking member.
(e) ADVISORY COMMITTEE REPORTS.—The report re-
quired under section 135(e)(1) of the Trade Act of 1974 re-
garding 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 President
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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 cal-
endar days before the day on which the President en-
ters 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 as-
sessment 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 impact
of the agreement on the United States economy as a
whole and on specific industry sectors, including the
impact the agreement will have on the gross domestic
product, exports and imports, aggregate employment
and employment opportunities, the production, em-