I
103D CONGRESS
1ST SESSION
H. R. 763
To encourage the establishment of free trade areas between the United States
and certain Pacific Rim countries.
IN THE HOUSE OF REPRESENTATIVES
FEBRUARY, 3, 1993
Mr. CRANE (for himself and Mr. GIBBONS) 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 finds that—
(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) continued economic growth, and the result-
ing economic and political stability, within the coun-
tries of the Pacific Rim is of vital strategic and eco-
nomic interest to the United States;
(3) bilateral disputes between the United States
and Pacific Rim countries could be more effectively
resolved in the context of mutually agreed-upon dis-
ciplines and dispute settlement mechanisms rather
than issue-by-issue confrontations under section 301
of the Trade Act of 1974 or other trade remedy
laws; and
(4) free trade agreements between the United
States and Pacific Rim countries, whose economies
are becoming increasingly interdependent, will pro-
vide a foundation for enhanced cooperation and will
ensure mutually beneficial economic and political re-
lations.
SEC. 2. PRENEGOTIATION CONSULTATIONS AND CONSID-
ERATIONS.
(a) PRELIMINARY CONSULTATIONS.—Within 60 days
after the date of the enactment of this Act, the President
shall initiate preliminary consultations with the govern-
ment of each eligible Pacific Rim country to determine the
feasibility and desirability of negotiating the elimination
of tariffs and nontariff barriers (including barriers to in-
vestment, trade in services, and protection of intellectual
property rights) in the context of a bilateral free trade
agreement. If the preliminary consultations indicate that
the establishment of a free trade area between the United
States and the eligible country is feasible and desirable,
the President shall request a meeting at the ministerial
level with the government of that country to consider the
conditions under which formal negotiations regarding a
free trade agreement could be commenced.
(b) MINISTERIAL MEETING RECOMMENDATIONS.—
At each ministerial meeting convened pursuant to sub-
section (a), the President shall recommend the establish-
ment of a council comprised of appropriate public and pri-
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 one year after 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 which dispute settlement mechanisms
would be appropriate to effectively resolve bilateral
trade problems.
(c) CONSIDERATIONS.—Before entering into formal
negotiations under section 1102 of the Omnibus Trade
and Competitiveness Act of 1988 with an eligible Pacific
Rim country, the President shall consider whether that
country—
(1) is a member of, or applicant to, the General
Agreement on Tariffs and Trade;
(2) has pursued substantive trade liberalization
and undertaken structural economic reforms in
order to achieve an economy governed by market
forces and international trade disciplines;
(3) is an active participant in the Uruguay
Round of multilateral trade negotiations under the
auspices of the GATT, has demonstrated a commit-
ment to the success of these negotiations, and has
pursued goals and objectives consistent with those of
the United States; and
(4) is a country whose bilateral relationship
with the United States will be enhanced by eliminat-
ing substantially all tariff and nontariff barriers and
structural impediments and will benefit from im-
proved dispute settlement mechanisms.
(d) EXTENSION
OF ‘‘FAST TRACK’’ PROCEDURES
WITH RESPECT TO AGREEMENTS ENTERED INTO WITH
ELIGIBLE PACIFIC RIM COUNTRIES.—
(1) Notwithstanding the provisions of section
1102(c)(1) of the Omnibus Trade and Competitive-
ness Act of 1988 relating to the expiration of the
authority contained in such section on June 1, 1993,
the President may enter into bilateral trade agree-
ments with eligible Pacific Rim countries under such
section.
(2) Notwithstanding the provisions of section
1103(b)(1)(A) of the Omnibus Trade and Competi-
tiveness Act of 1988 relating to the expiration of the
authority contained in such section on June 1, 1991,
and subject to section 1103(c) of such Act, the pro-
visions of section 151 of the Trade Act of 1974 shall
apply to any agreement entered into with an eligible
Pacific Rim country.
(e) WAIVER OF NEGOTIATION REQUEST BY ELIGI-
BLE PACIFIC RIM COUNTRIES.—Section 1102(c)(3)(B) of
the Omnibus Trade and Competitiveness Act of 1988 (19
U.S.C. 2902(c)(3)(B)) does not apply to trade agreements
referred to in subsection (a).
SEC. 3. ADDITIONAL NEGOTIATING OBJECTIVES.
In addition to the negotiating objectives set forth in
section 1101 of the Omnibus Trade and Competitiveness
Act of 1988, the President shall seek to achieve, in nego-
tiations with an eligible Pacific Rim country to establish
a free trade area, substantial progress in—
(1) improving the bilateral relationship between
the United States and that country by promoting
mutual economic benefits through trade expansion,
greater economic efficiency, enhanced competition,
and common rules governing trade practices;
(2) removing, to the greatest extent possible,
formal and informal barriers to trade between the
parties, particularly in agricultural products and
manufactured components in an effort to reduce
government subsidies and injurious dumping prac-
tices;
(3) providing effective mechanisms for the de-
velopment of rules in nontraditional areas such as
services, trade-related investment, and the protection
of intellectual property rights;
(4) encouraging United States firms to take
greater advantage of opportunities in Pacific Rim
country markets and to better understand how to
compete effectively in those markets; and
(5) improving market access in the respective
countries as a means of stabilizing the bilateral bal-
ance of trade.
SEC. 4. ELIGIBLE PACIFIC RIM COUNTRIES.
As used in this Act, the term ‘‘eligible Pacific Rim
country’’ means Indonesia, Malaysia, the Philippines,
Singapore, Thailand, Brunei, Australia, New Zealand,
Taiwan, South Korea, Japan, or Hong Kong.
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