I
106TH CONGRESS
1ST SESSION
H. R. 1942
To encourage the establishment of free trade areas between the United States
and certain Pacific Rim countries.
IN THE HOUSE OF REPRESENTATIVES
MAY 26, 1999
Mr. CRANE (for himself, Mr. DREIER, Mrs. JOHNSON of Connecticut, and Ms.
DUNN) introduced the following bill; which was referred to the Committee
on Ways and Means
A BILL
To encourage the establishment of free trade areas between
the United States and certain Pacific Rim countries.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. FINDINGS.
The Congress makes the following findings:
(1) Free trade agreements improve the income
and prosperity of the citizens of participating coun-
tries because open markets increase competition,
eliminate inefficiencies, and result in lower costs to
manufacturers and consumers.
(2) The 21 member economies of APEC rep-
resent over half of world production and almost half
of global trade. In November of 1994, leaders of
members economies of APEC declared their commit-
ment to achieving ‘‘free and open trade’’ in the re-
gion by the year 2020 in the case of developing
countries and 2010 in the case of developed coun-
tries.
(3) Continued economic growth through the
creation of new opportunities for trade and invest-
ment, and the economic and political stability result-
ing from diminishing the proclivity of governments
to establish and maintain tariff and nontariff trade
barriers, is vital to the strategic and economic inter-
ests of the United States in the Pacific Rim region.
(4) The financial crisis affecting Asia, and asso-
ciated macroeconomic factors, have resulted in a se-
vere disruption of the pattern of rapid United States
export growth that was the dominant pattern of
United States trade with the region during the years
1989–1997.
(5) At a difficult time in the world economy,
which is increasing pressures on countries to turn
inward and adopt protectionist policies, free trade
agreement negotiations provide additional leverage
to achieve market opening measures for United
States goods and services.
(6) Many countries in the region, including
New Zealand, Australia, and Singapore, are long-
time allies of the United States in working to in-
crease economic growth through trade liberalization,
both in the World Trade Organization and in APEC.
(7) Building closer ties and coordinating with
countries whose interests are largely friendly to the
United States will have immense payoffs as the
trade negotiations to achieve trade liberalization de-
scribed in paragraph (6) proceed early in the next
century.
(8) In particular, the United States must con-
tinue to promote its interests in the Asia-Pacific re-
gion through an aggressive short- and long-term
trade and investment negotiating agenda.
(9) Bilateral trade agreement negotiations have
been shown to exert constructive influence on multi-
lateral and regional trade negotiations. Typically, bi-
lateral trade talks enlarge common areas of agree-
ment on trade disciplines that can then be advanced
more successfully in the context of a larger negotia-
tion, among additional trading partners.
(10) Trade and investment disputes between
the United States and Pacific Rim countries could
be more effectively resolved in the context of mutu-
ally agreed-upon disciplines and dispute settlement
mechanisms rather than issue-by-issue confronta-
tions under section 301 of the Trade Act of 1974 or
other trade remedy laws.
(11) By providing a firm foundation for en-
hanced cooperation, free trade agreements between
the United States and Pacific Rim countries, whose
economies are becoming increasingly complementary
and interdependent, will help ensure mutually bene-
ficial economic and political relations.
(12) Free trade agreements, by enhancing mar-
ket access and the understanding of United States
firms with respect to competing effectively in Pacific
Rim markets, will thereby assist in stabilizing the bi-
lateral trade balance between the United States and
countries in the Pacific Rim.
SEC. 2. UNITED STATES TRADE POLICY WITH ELIGIBLE PA-
CIFIC RIM COUNTRIES.
It shall be the policy of the United States to seek
the elimination of tariff and nontariff barriers and to
achieve more open, equitable, and reciprocal market access
through the negotiation of bilateral free trade agreements
with eligible Pacific Rim countries. These nontariff bar-
riers include—
(1) regulatory and other barriers that deny na-
tional treatment and the right of establishment for
trade in services;
(2) denial of national treatment to foreign di-
rect investment;
(3) lack of adequate protection for copyrights,
patents, trademarks, semiconductor chips, layout de-
signs, trade secrets, and other forms of intellectual
property;
(4) arbitrary and discriminatory sanitary,
phytosanitary, or technical standards;
(5) government measures such as price controls,
reference pricing, and unreasonable restrictions on
listings 
for 
government-established 
formularies
which deny full market access for United States
products; and
(6) unfair or trade-distorting activities of State
trading enterprises and other administrative mecha-
nisms.
SEC. 3. PRENEGOTIATION CONSULTATIONS.
(a) PRELIMINARY CONSULTATIONS.—Within 60 days
after the date of the enactment of this Act, the President
vate sector officials from the respective countries. The
functions of the council are—
(1) to review and analyze the aspects of the ex-
isting bilateral relationship as they relate to the ne-
gotiation of a free trade agreement, including—
(A) trade and investment practices and im-
pediments;
(B) differences in customs laws and proce-
dures;
(C) the harmonization of trade statistics
and other economic data; and
(D) the status of bilateral disputes and ex-
change of information on disputed practices;
and
(2) within 6 months after its establishment, to
issue a report on the overall bilateral relationship
and the prospects for a successful negotiation of a
free trade agreement that addresses the possible
benefits and adverse effects of concluding a free
trade agreement and examines the types of dispute
settlement mechanisms that would be appropriate to
effectively resolve bilateral trade problems.
SEC. 5. PRESIDENTIAL DETERMINATION REGARDING THE
FEASIBILITY AND DESIRABILITY OF NEGOTI-
ATING FREE TRADE AGREEMENTS WITH ELI-
GIBLE COUNTRIES.
(a) DETERMINATION AND REPORT.—Not later than
6 months after receiving any report prepared by a bilateral
council established under section 4, the President, after
receiving advice from the Advisory Committee for Trade
Policy Negotiations established under section 135(b) of
the Trade Act of 1974, and taking into account—
(1) the policy set forth in section 2, and
(2) the advice of the International Trade Com-
mission under section 3(c),
shall make a determination on the feasibility and desir-
ability of commencing formal negotiations regarding a free
trade agreement with an eligible Pacific Rim country or
countries to which the report relates, and shall submit a
report to the Committee on Finance of the Senate and
the Committee on Ways and Means of the House of Rep-
resentatives on that determination.
(b) FACTORS IN MAKING DETERMINATION.—In mak-
ing a determination on the feasibility and desirability of
establishing a free trade area between the United States
and an eligible country, the President shall consider
whether that country—
(1) is a member of the World Trade Organiza-
tion;
(2) has expressed an interest in negotiating a
bilateral free trade agreement with the United
States;
(3) has pursued substantive trade liberalization
and undertaken structural economic reforms in
order to achieve an economy governed by market
forces, fiscal restraint, and international trade dis-
ciplines and, as a result, has achieved a largely open
economy;
(4) has demonstrated a broad affinity for
United States trade policy objectives and initiatives;
(5) is an active participant in preparations of
the General Council of the World Trade Organiza-
tion for the 3d Ministerial Conference of the World
Trade Organization which will be held in the United
States from November 30 to December 3, 1999, and
has demonstrated a commitment to United States
objectives with respect to an accelerated negotiating
round of the World Trade Organization;
(6) is working consistently to eliminate export
performance requirements or local content require-
ments;
(7) seeks the harmonization of domestic and
international standards in a manner that ensures
transparency and nondiscrimination among the
member economies of APEC;
(8) is increasing the economic opportunities
available to small- and medium-sized businesses
through deregulation;
(9) is working consistently to eliminate barriers
to trade in services;
(10) provides national treatment for foreign di-
rect investment;
(11) is working consistently to accommodate
market access objectives of the United States;
(12) is working constructively to resolve trade
disputes with the United States and displays a clear
intent to continue to do so;
(13) is a country whose bilateral trade relation-
ship with the United States will benefit from im-
proved dispute settlement mechanisms; and
(14) is a country whose market for products
and services of the United States will be signifi-
cantly enhanced by eliminating substantially all tar-
iff and nontariff barriers and structural impedi-
ments to trade.
SEC. 6. CONSULTATIONS WITH CONGRESSIONAL COMMIT-
TEES.
The President shall consult with the Committee on
Ways and Means of the House of Representatives and the
Committee on Finance of the Senate on a regular basis
with respect to the implementation of each of the provi-
sions of this Act.
SEC. 7. ELIGIBLE PACIFIC RIM COUNTRIES.
As used in this Act:
(1) APEC.—The term ‘‘APEC’’ means the
Asian Pacific Economic Cooperation Forum.
(2) ELIGIBLE
PACIFIC
RIM
COUNTRY.—The
term ‘‘eligible Pacific Rim country’’ means any
country that is a WTO member (as defined in sec-
tion 2 of the Uruguay Round Agreements Act (19
U.S.C. 3501) and is a member economy of APEC.
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