I
104TH CONGRESS
1ST SESSION
H. R. 1560
To expand United States exports of goods and services by requiring the
development of objective criteria to achieve market access in foreign
countries, to provide the President with reciprocal trade authority, and
for other purposes.
IN THE HOUSE OF REPRESENTATIVES
MAY 3, 1995
Mr. GEPHARDT (for himself, Mr. BONIOR, Mr. FAZIO of California, Mrs. KEN-
NELLY, Mr. MATSUI, Mr. DINGELL, Mr. LEVIN, Mr. MINETA, Ms. KAP-
TUR, Mr. HOYER, Mr. MILLER of California, Mrs. COLLINS of Illinois,
Mr. CARDIN, Mr. LAFALCE, Mr. BROWN of Ohio, Mr. CLYBURN, Ms.
DANNER, Ms. DELAURO, Mr. DEUTSCH, Mr. EVANS, Mr. FILNER, Mr.
FRANK of Massachusetts, Mr. FRAZER, Mr. GONZALEZ, Mr. HINCHEY,
Mr. JACOBS, Ms. EDDIE BERNICE JOHNSON of Texas, Mr. KILDEE, Mr.
KLINK, Mr. LIPINSKI, Mrs. MEEK of Florida, Mr. NEAL of Massachu-
setts, Mr. RAHALL, Mr. ROMERO-BARCELO´, Mr. SANDERS, Mr. STUPAK,
Mr. SPRATT, Mr. KLECZKA, and Ms. JACKSON-LEE) introduced the fol-
lowing bill; which was referred to the Committee on Ways and Means,
and in addition to the Committee on Rules, for a period to be subse-
quently determined by the Speaker, in each case for consideration of such
provisions as fall within the jurisdiction of the committee concerned
A BILL
To expand United States exports of goods and services by
requiring the development of objective criteria to achieve
market access in foreign countries, to provide the Presi-
dent with reciprocal trade authority, and for other
purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Open Markets and
Fair Trade Act of 1995’’.
SEC. 2. REPORTS ON MARKET ACCESS.
(a) ANNUAL REPORTS.—Not later than 90 days after
the date of the enactment of this Act, and annually there-
after, the Secretary shall submit to the Congress a report
with respect to those countries selected by the Secretary
in which goods or services produced or originating in the
United States, that would otherwise be competitive in
those countries, do not have market access. Each report
shall contain the following with respect to each such coun-
try:
(1) ASSESSMENT OF POTENTIAL MARKET AC-
CESS.—An assessment of the opportunities that
would, but for the lack of market access, be available
in the market in that country, for goods and services
produced or originating in the United States in
those sectors selected by the Secretary. In making
such assessment, the Secretary shall consider the
competitive position of such goods and services in
similarly developed markets in other countries. Such
assessment shall specify the time periods within
which such market access opportunities should rea-
sonably be expected to be obtained.
(2) CRITERIA
FOR
MEASURING
MARKET
AC-
CESS.—Objective criteria for measuring the extent to
which those market access opportunities described in
paragraph (1) have been obtained. The development
of such objective criteria may include the use of in-
terim objective criteria to measure results on a peri-
odic basis, as appropriate.
(3) COMPLIANCE WITH TRADE AGREEMENTS.—
An assessment of whether, and to what extent, the
country concerned has materially complied with—
(A) 
agreements 
and 
understandings
reached between the United States and that
country pursuant to section 3, and
(B) existing trade agreements between the
United States and that country.
Such assessment shall include specific information
on the extent to which United States suppliers have
achieved additional access to the market in the coun-
try concerned and the extent to which that country
has complied with other commitments under such
agreements and understandings.
(b) SELECTION OF COUNTRIES AND SECTORS.—
(1) IN GENERAL.—In selecting countries and
sectors that are to be the subject of a report under
subsection (a), the Secretary shall give priority to—
(A) any country with which the United
States has a trade deficit if access to the mar-
kets in that country is likely to have significant
potential to increase exports of United States
goods and services; and
(B) any country, and sectors therein, in
which access to the markets will result in sig-
nificant employment benefits for producers of
United States goods and services.
The Secretary shall also give priority to sectors
which represent critical technologies, including those
identified by the National Critical Technologies
Panel under section 603 of the National Science and
Technology Policy, Organization, and Priorities Act
of 1976 (42 U.S.C. 6683).
(2) FIRST REPORT.—The first report submitted
under subsection (a) shall include those countries
with which the United States has a substantial por-
tion of its trade deficit.
(3) TRADE
SURPLUS
COUNTRIES.—The Sec-
retary may include in reports after the first report
such countries as the Secretary considers appro-
priate with which the United States has a trade sur-
plus but which are otherwise described in subsection
(a) and paragraph (1) of this subsection.
(c) OTHER SECTORS.—The Secretary shall include
an assessment under subsection (a) of any country or sec-
tor for which the Trade Representative requests such as-
sessment be made. In preparing any such request, the
Trade Representative shall give priority to those barriers
identified in the reports required by section 181(b) of the
Trade Act of 1974 (19 U.S.C. 2241(b)).
(d) INFORMATION ON ACCESS BY FOREIGN SUPPLI-
ERS.—The Secretary shall consult with the governments
of foreign countries concerning access to the markets of
any other country of goods and services produced or origi-
nating in those countries. At the request of the govern-
ment of any such country so consulted, the Secretary may
include in the reports required by subsection (a) informa-
tion, with respect to that country, on such access.
SEC. 3. NEGOTIATIONS TO ACHIEVE MARKET ACCESS.
(a) NEGOTIATING AUTHORITY.—The President is au-
thorized to enter into agreements or other understandings
with the government of any country for the purpose of
obtaining the market access opportunities described in the
reports of the Secretary under section 2.
(b) DETERMINATION
OF PRIORITY
OF NEGOTIA-
TIONS.—Upon the submission by the Secretary of each re-
port under section 2, the Trade Representative shall deter-
mine—
(1) for which countries and sectors identified in
the report the Trade Representative will pursue ne-
gotiations, during the 6-month period following sub-
mission of the report, for the purpose of concluding
agreements or other understandings described in
subsection (a), and the timeframe for pursuing nego-
tiations on any other country or sector identified in
the report; and
(2) for which countries and sectors identified in
any previous report of the Secretary under section 2
the Trade Representative will pursue negotiations,
during the 6-month period described in paragraph
(1), in cases in which—
(A) negotiations were not previously pur-
sued by the Trade Representative, or
(B) negotiations that were pursued by the
Trade Representative did not result in the con-
clusion of an agreement or understanding de-
scribed in subsection (a) during the preceding
6-month period, but are expected to result in
such an agreement or understanding during the
6-month period described in paragraph (1).
For purposes of this Act, negotiations by the Trade Rep-
resentative with respect to a particular sector shall be for
a period of not more than 12 months.
(c) SEMIANNUAL REPORTS.—At the end of the 6-
month period beginning on the date on which the Sec-
retary’s first report is submitted under section 2(a), and
every 6 months thereafter, the Trade Representative shall
submit to the Congress a report containing the following:
(1) REPORT WHERE NEGOTIATIONS PURSUED
IN
PREVIOUS
6-MONTH
PERIOD.—With respect to
each country and sector on which negotiations de-
scribed in subsection (b) were pursued during that
6-month period—
(A) a determination of whether such nego-
tiations have resulted in the conclusion of an
agreement or understanding intended to obtain
the market access opportunities described in the
most recent applicable report of the Secretary,
and if not—
(i) whether such negotiations are con-
tinuing because they are expected to result
in such an agreement or understanding
during the succeeding 6-month period; or
(ii) whether such negotiations have
terminated;
(B) in the case of a positive determination
made under subparagraph (A)(i) in the preced-
ing report submitted under this subsection, a
determination of whether the continuing nego-
tiations have resulted in the conclusion of an
agreement or understanding described in sub-
paragraph (A) during that 6-month period.
(2) REPORT WHERE NEGOTIATIONS NOT PUR-
SUED.—With respect to each country and sector on
which negotiations described in subsection (b) were
not pursued during that 6-month period, a deter-
mination of when such negotiations will be pursued.
SEC. 4. MONITORING OF AGREEMENTS AND UNDERSTAND-
INGS.
(a) IN GENERAL.—For the purpose of making the
assessments required by section 2(a)(3), the Secretary
shall monitor the compliance with each agreement or un-
derstanding reached between the United States and any
country pursuant to section 3, and with each existing
trade agreement between the United States and any coun-
try that is the subject of a report under section 2(a). In
making each such assessment, the Secretary shall de-
scribe—
(1) the extent to which market access for the
country and sectors covered by the agreement or un-
derstanding has been achieved; and
(2) the bilateral trade relationship with that
country in that sector.
In the case of agreements or understandings reached pur-
suant to section 3, the description under paragraph (1)
shall be done on the basis of the objective criteria set forth
in the applicable report under section 2(a)(2).
(b) TREATMENT
OF AGREEMENTS
AND UNDER-
STANDINGS.—Any agreement or understanding reached
pursuant to negotiations conducted under this Act, and
each existing trade agreement between the United States
and a country that is the subject of a report under section
2(a), shall be considered to be a trade agreement for pur-
poses of section 301 of the Trade Act of 1974.
SEC. 5. TRIGGERING OF SECTION 301 ACTIONS.
(a) FAILURE TO CONCLUDE AGREEMENTS.—In any
case in which the Trade Representative determines under
section 3(c)(1) (A)(ii) or (B) that negotiations have not
resulted in the conclusion of an agreement or understand-
ing described in section 3(a), each restriction on, or bar-
rier or impediment to, access to the markets of the country
concerned that was the subject of such negotiations shall,
for purposes of title III of the Trade Act of 1974, be con-
sidered to be an act, policy, or practice determined under
section 304 of that Act to be an act, policy, or practice
that is unreasonable and discriminatory and burdens or
restricts United States commerce. The Trade Representa-
tive shall determine what action to take under section
301(b) of that Act in response to such act, policy, or prac-
tice.
(b) NONCOMPLIANCE WITH AGREEMENTS OR UN-
DERSTANDINGS.—In any case in which the Secretary de-
termines, in a report submitted under section 2(a), that
a foreign country is not in material compliance with—
(1) any agreement or understanding concluded
pursuant to negotiations conducted under section 3,
or
(2) any existing trade agreement between the
United States and that country,
the Trade Representative shall determine what action to
take under section 301(a) of the Trade Act of 1974. For
purposes of section 301 of that Act, a determination of
noncompliance described in the preceding sentence shall
be treated as a determination made under section 304 of
that Act.
SEC. 6. EXPEDITED PROCEDURES FOR CERTAIN PRESI-
DENTIAL ACTIONS.
(a) AUTHORITY FOR RECIPROCAL ACTIONS.—In any
case in which—
(1) section 5 applies,
(2) the President determines that reciprocal ac-
tion should be taken by the United States in re-
sponse to—
(A) a restriction, barrier, or impediment
referred to in section 5(a) with respect to access
to the market of a country, or
(B) noncompliance with an agreement, un-
derstanding, or trade agreement referred to in
section 5(b),
as the case may be,
(3) changes in existing law or new statutory au-
thority is necessary for such reciprocal action to be
taken, and
(4) the President, within 30 days (excluding
any day described in section 154(b) of the Trade Act
of 1974) after—
(A) the determination of the Trade Rep-
resentative under section 3(c)(1)(A)(ii) or (B),
or
(B) the determination of the Secretary in
the applicable report under section 2(a),
as the case may be, submits to the Congress a draft
of implementing legislation with respect to the
changes or authority described in paragraph (3),
then subsection (c) applies.
(b) DEFINITIONS.—For purposes of this section—
(1) the term ‘‘reciprocal action’’ means action
that is taken in direct response to a restriction on,
or barrier or impediment to, access to the market in
another country and is comparable or of equivalent
effect to such restriction, barrier, or impediment;
and
(2) the term ‘‘implementing legislation’’ means
a bill of either House of Congress which is intro-
duced as provided in subsection (c) and which con-
tains provisions necessary to make the changes or
provide the authority described in subsection (a)(3).
(c) PROCEDURES
FOR
IMPLEMENTING
LEGISLA-
TION.—On the day on which implementing legislation is
submitted to the House of Representatives and the Senate
under subsection (a), the implementing legislation shall be
introduced and referred as provided in section 151(c)(1)
of the Trade Act of 1974 for implementing bills under
such section. The provisions of subsections (d), (e), (f),
and (g) of section 151 of such Act shall apply to imple-
menting legislation to the same extent as such subsections
apply to implementing bills.
(d) RULES OF HOUSE OF REPRESENTATIVES AND
SENATE.—This section is 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 is deemed a part of the rules
of each House, respectively, and such procedures su-
persede 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. 7. URUGUAY ROUND AGREEMENTS NOT AFFECTED.
Nothing in this Act shall be construed to violate any
provision of the agreements approved by the Congress in
section 101(a)(1) of the Uruguay Round Agreements Act
(19 U.S.C. 3511(a)(1)).
SEC. 8. DEFINITIONS.
As used in this Act:
(1) EXISTING
TRADE
AGREEMENT
BETWEEN
THE UNITED STATES AND A COUNTRY.—An ‘‘exist-
ing trade agreement’’ between the United States and
another country means any trade agreement or un-
derstanding that was entered into between the Unit-
ed States and that country before the date of the en-
actment of this Act and is in effect on such date.
Such term includes, but is not limited to—
(A) with respect to Japan—
(i) the Arrangement Between the Gov-
ernment of Japan and the Government of
the United States of America Concerning
Trade in Semiconductor Products, signed
in 1986;
(ii) the Arrangement Between the
Government of Japan and the Government
of the United States of America Concern-
ing Trade in Semiconductor Products,
signed in 1991;
(iii) the United States-Japan Wood
Products Agreement, signed on June 5,
1990;
(iv) Measures Related to Japanese
Public Sector Procurements of Computer
Products and Services, signed on January
10, 1992;
(v) the Tokyo Declaration on the
U.S.-Japan Global Partnership, signed on
January 9, 1992; and
(vi) the Cellular Telephone and Third-
Party Radio Agreement, signed in 1989;
(B) with respect to the European Union—
(i) the Agreement Concerning the Ap-
plication of the GATT Agreement on
Trade in Civil Aircraft Between the Euro-
pean Economic Community and the Gov-
ernment of the United States of America
on trade in large civil aircraft, with an-
nexes, entered into force on July 17, 1992;
(ii) the Agreement Concerning Pro-
curement Between the United States and
the European Union, signed April 15,
1994; and
(iii) the Memorandum of Understand-
ing (MOU) on Procurement Between the
United States and the European Union,
signed May 25, 1993; and
(C) with respect to the People’s Republic
of China—
(i) the Memorandum of Understand-
ing (MOU) on the Protection of Intellec-
tual Property Rights Between the United
States and the People’s Republic of China,
signed January 17, 1992;
(ii) the Memorandum of Understand-
ing (MOU) on Market Access Between the
United States and the People’s Republic of
China, signed October 10, 1992;
(iii) the Bilateral Textile Agreement
Between the United States and the Peo-
ple’s Republic of China, signed January
17, 1994; and
(iv) an exchange of letters with an at-
tached action plan between the United
States and the People’s Republic of China,
signed February 26, 1995, relating to in-
tellectual property rights.
(2) SECRETARY.—The term ‘‘Secretary’’ means
the Secretary of Commerce.
(3) 
TRADE
REPRESENTATIVE.—The 
term
‘‘Trade Representative’’ means the United States
Trade Representative.
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