Basel Convention on the Control of
Transboundary Movements of Hazardous
Wastes.
(D) ECONOMIC
ASSISTANCE.—The term
‘‘economic assistance’’ means—
(i) any assistance under part I or
chapter 4 of part II of the Foreign Assist-
ance Act of 1961 (including programs
under title IV of chapter 2, relating to the
Overseas Private Investment Corporation);
and
(ii) the provision of agricultural com-
modities, other than food, under the Agri-
cultural Trade Development and Assist-
ance Act of 1954.
(E) FINANCIAL TRANSACTION.—As used in
this paragraph, the term ‘‘financial trans-
action’’ has the meaning given that term in sec-
tion 1956(c)(4) of title 18, United States Code.
(F) INVESTMENT.—As used in this para-
graph, the term ‘‘investment’’ means any con-
tribution or commitment of funds, commodities,
services, patents, or other forms of intellectual
property, processes, or techniques, including—
(i) a loan or loans;
(ii) the purchase of a share of owner-
ship;
(iii) participation in royalties, earn-
ings, or profits; and
(iv) the furnishing or commodities or
services pursuant to a lease or other con-
tract.
(G) EXCLUSIONS.—The term ‘‘unilateral
economic sanction’’ does not include—
(i) any measure imposed to remedy
unfair trade practices or to enforce United
States rights under a trade agreement, in-
cluding under section 337 of the Tariff Act
of 1930, title VII of that Act, title III of
the Trade Act of 1974, sections 1374 and
1377 of the Omnibus Trade and Competi-
tiveness Act of 1988 (19 U.S.C. 3103 and
3106), and section 3 of the Act of March
3, 1933 (41 U.S.C. 10b–1);
(ii) any measure imposed to remedy
market disruption or to respond to injury
to a domestic industry for which increased
imports are a substantial cause or threat
thereof, including remedies under sections
201 and 406 of the Trade Act of 1974,
and textile import restrictions (including
those imposed under section 204 of the
Agricultural Act of 1956 (7 U.S.C. 1784));
(iii) any action taken under title IV of
the Trade Act of 1974, including the en-
actment of a joint resolution under section
402(d)(2) of that Act;
(iv) any measure imposed to restrict
imports of agricultural commodities to pro-
tect food safety or to ensure the orderly
marketing of commodities in the United
States, including actions taken under sec-
tion 22 of the Agricultural Adjustment Act
(7 U.S.C. 624);
(v) any measure imposed to restrict
imports of any other products in order to
protect domestic health or safety;
(vi) any measure authorized by, or im-
posed under, a multilateral or bilateral
trade agreement to which the United
States is a signatory, including the Uru-
guay Round Agreements, the North Amer-
ican Free Trade Agreement, the United
States-Israel Free Trade Agreement, and
the United States-Canada Free Trade
Agreement; and
(vii) any prohibition or restriction on
the sale, export, lease, or other transfer of
any defense article, defense service, or de-
sign and construction service under the
Arms Export Control Act, or on any fi-
nancing provided under that Act.
(2) NATIONAL
EMERGENCY.—The term ‘‘na-
tional emergency’’ means any unusual or extraor-
dinary threat, which has its source in whole or sub-
stantial part outside the United States, to the na-
tional security, foreign policy, or economy of the
United States.
(3) AGRICULTURAL
COMMODITY.—The term
‘‘agricultural commodity’’ has the meaning given
that term in section 102(1) of the Agricultural
Trade Act of 1978 (7 U.S.C. 5602(1)).
(4) APPROPRIATE
COMMITTEES.—The term
‘‘appropriate committees’’ means the Committee on
Agriculture, the Committee on International Rela-
tions, the Committee on Ways and Means, and the
Committee on Banking and Financial Services of the
House of Representatives, and the Committee on
Agriculture, Nutrition, and Forestry, the Committee
on Finance, the Committee on Banking, Housing,
and Urban Affairs, and the Committee on Foreign
Relations of the Senate.
(5) CONTRACT SANCTITY.—The term ‘‘contract
sanctity’’, with respect to a unilateral economic
sanction, refers to the inapplicability of the sanction
to—
(A) a contract or agreement entered into
before the sanction is imposed, or to a valid ex-
port license or other authorization to export;
and
(B) actions taken to enforce the right to
maintain intellectual property rights, in the for-
eign country against which the sanction is im-
posed, which existed before the imposition of
the sanction.
SEC. 5. GUIDELINES FOR UNILATERAL ECONOMIC SANC-
TIONS LEGISLATION.
It is the sense of Congress that any bill or joint reso-
lution that imposes any unilateral economic sanction, or
authorizes the imposition of any unilateral economic sanc-
tion by the executive branch, and is considered by the
House of Representatives or the Senate, should—
(1) state the foreign policy or national security
objective or objectives of the United States that the
economic sanction is intended to achieve;
(2) provide that the economic sanction termi-
nate 2 years after it is imposed, unless specifically
reauthorized by the Congress;
(3) provide for contract sanctity;
(4) provide authority for the President both to
adjust the timing and scope of the sanction and to
waive the sanction, if the President determines it is
in the national interest to do so;
(5)(A) target the sanction as narrowly as pos-
sible on foreign governments, entities, and officials
that are responsible for the conduct being targeted;
(B) not include restrictions on—
(i) the provision of medicine, medical
equipment, or food;
(ii) assistance under chapter 8 of part I of
the Foreign Assistance Act of 1961; or
(iii) disaster relief assistance, or assistance
for refugees, under part I or chapter 4 of part
II of the Foreign Assistance Act of 1961; and
(C) seek to minimize any adverse impact on the
humanitarian activities of United States and foreign
nongovernmental organizations in any country
against which the sanction may be imposed; and
(6) provide, to the extent that the Secretary of
Agriculture or the Congressional Budget Office finds
that—
(A) the proposed sanction is likely to re-
strict exports of any agricultural commodity or
is likely to result in retaliation against exports
of any agricultural commodity from the United
States, and
(B) the sanction is proposed to be im-
posed, or is likely to be imposed, on a country
or countries that constituted, in the preceding
calendar year, the market for more than 3 per-
cent of all export sales from the United States
of an agricultural commodity,
that the Secretary of Agriculture expand agricultural
export assistance under United States market devel-
opment, food assistance, or export promotion pro-
grams to offset the likely damage to incomes of pro-
ducers of the affected agricultural commodity or
commodities, to the maximum extent permitted by
law and by the obligations of the United States
under the Agreement on Agriculture referred to in
section 101(d)(2) of the Uruguay Round Agree-
ments Act (19 U.S.C. 3511(d)(2)).
SEC. 6. REQUIREMENTS FOR BILL OR JOINT RESOLUTION.
(a) PUBLIC COMMENT.—Not later than 15 days prior
to the consideration by the committee of primary jurisdic-
tion of a bill or joint resolution that imposes any unilateral
economic sanction, or authorizes the imposition of any
unilateral economic sanction by the executive branch, the
chairman of that committee shall publish a notice which
provides an opportunity for interested members of the
public to submit comments to the committee on the pro-
posed sanction.
(b) COMMITTEE REPORTS.—In the case of any bill
or joint resolution described in subsection (a) that is re-
ported by a committee of the House of Representatives
or the Senate, the committee report accompanying the bill
or joint resolution shall contain a statement of whether
the legislation meets all the guidelines specified in para-
graphs (1) through (6) of section 5 and, if the bill or joint
resolution does not, an explanation of why it does not. The
report shall also include a specific statement of whether
the bill or joint resolution includes any restrictions de-
scribed in clauses (i), (ii), or (iii) of section 5(5)(B).
(c) REPORTS BY THE PRESIDENT AND SECRETARY
OF AGRICULTURE.—
(1) REPORT
REQUIRED.—Not later than 30
days after a committee of the House of Representa-
tives or the Senate reports any bill or joint resolu-
tion described in subsection (a) or the House of
Representatives or the Senate receives such bill or
joint resolution from the other House of Congress,
the President and the Secretary of Agriculture shall
submit to the House filing the report or receiving
the bill or joint resolution the reports described in
paragraphs (2) and (3).
(2) CONTENT
OF
REPORT
BY
THE
PRESI-
DENT.—The President’s report to the Congress
under paragraph (1) shall contain—
(A) an assessment of—
(i) the likelihood that the proposed
unilateral economic sanction will achieve
its stated objective within a reasonable pe-
riod of time; and
(ii) the impact of the proposed unilat-
eral economic sanction on—
(I) humanitarian conditions, in-
cluding the impact on conditions in
any specific countries on which the
sanction is proposed to be or may be
imposed;
(II) humanitarian activities of
United States and foreign nongovern-
mental organizations;
(III) relations with United States
allies;
(IV) other United States national
security and foreign policy interests;
and
(V) countries and entities other
than those on which the sanction is
proposed to be or may be imposed;
(B) a description and assessment of—
(i) diplomatic and other steps the
United States has taken to accomplish the
intended objectives of the unilateral sanc-
tion legislation;
(ii) the likelihood of multilateral adop-
tion of comparable measures;
(iii) comparable measures undertaken
by other countries;
(iv) alternative measures to promote
the same objectives, and an assessment of
their potential effectiveness;
(v) any obligations of the United
States under international treaties or trade
agreements with which the proposed sanc-
tion may conflict;
(vi) the likelihood that the proposed
sanction will lead to retaliation against
United States interests, including agricul-
tural interests; and
(vii) whether the achievement of the
objectives of the proposed sanction out-
weighs any likely costs to United States
foreign policy, national security, economic,
and humanitarian interests, including any
potential harm to United States business,
agriculture, and consumers, and any poten-
tial harm to the international reputation of
the United States as a reliable supplier of
products, technology, agricultural commod-
ities, and services.
(3) CONTENT OF REPORT BY THE SECRETARY
OF AGRICULTURE.—The Secretary of Agriculture’s
report to Congress under paragraph (1) shall con-
tain an assessment of—
(A) the extent to which any country or
countries proposed to be sanctioned or likely to
be sanctioned are markets that accounted for,
in the preceding calendar year, more than 3
percent of all export sales from the United
States of any agricultural commodity;
(B) the likelihood that exports of agricul-
tural commodities from the United States will
be affected by the proposed sanction or by re-
taliation by any country proposed to be sanc-
tioned or likely to be sanctioned, and specific
commodities which are most likely to be af-
fected;
(C) the likely effect on incomes of pro-
ducers of the specific commodities identified by
the Secretary;
(D) the extent to which the proposed sanc-
tion would permit foreign suppliers to replace
United States suppliers; and
(E) the likely effect of the proposed sanc-
tion on the reputation of United States farmers
as reliable suppliers of agricultural commodities
in general, and of the specific commodities iden-
tified by the Secretary.
(d) FEDERAL PRIVATE SECTOR MANDATE.—
(1) IN GENERAL.—Any bill or joint resolution
described in section 5 shall be considered to include
a Federal private sector mandate for purposes of
part B of title IV of the Congressional Budget Act
of 1974.
(2) REPORT BY THE CONGRESSIONAL BUDGET
OFFICE.—The report by the Congressional Budget
Office pursuant to paragraph (1) shall include an
assessment of the likely short-term and long-term
costs of the proposed sanction to the United States
economy, including the potential impact on United
States trade performance, employment, and growth,
the international reputation of the United States as
a reliable supplier of products, agricultural commod-
ities, technology, and services, and the economic
well-being and international competitive position of
United States industries, firms, workers, farmers,
and communities.
SEC. 7. REQUIREMENTS FOR EXECUTIVE ACTION.
(a) IN GENERAL.—
(1) ADVANCE NOTICE.—
(A) NOTICE OF INTENT TO IMPOSE SANC-
TION.—Notwithstanding any other provision of
law, the President shall publish notice in the
Federal Register at least 45 days in advance of
the imposition of any new unilateral economic
sanction with respect to a foreign country or
foreign entity of the President’s intention to im-
plement such sanction. The purpose of such no-
tice shall be to allow the formulation of an ef-
fective sanction that advances United States
national security and economic interests, and to
provide an opportunity for negotiations to
achieve the objectives specified in the law au-
thorizing imposition of the unilateral economic
sanction.
(B) WAIVER OF ADVANCE ANNOUNCEMENT
REQUIREMENT.—The President may waive the
provisions of subparagraph (A) in the case of
any new unilateral economic sanction that in-
volves freezing the assets of a foreign country
or entity if the President determines that the
national interest would be jeopardized by the
requirements of this section.
(2) NEW UNILATERAL ECONOMIC SANCTION.—
For purposes of this section, the term ‘‘new unilat-
eral economic sanction’’ means a unilateral economic
sanction imposed pursuant to a law enacted after
the date of the enactment of this Act or a sanction
imposed after such date of enactment pursuant to
the International Emergency Economic Powers Act
(50 U.S.C. 1701 et seq.).
(b) CONSULTATION.—
(1) APPROPRIATE
COMMITTEES.—The Presi-
dent shall consult with the appropriate committees
regarding any proposed new unilateral economic
sanction, including consultations regarding efforts to
achieve or increase multilateral cooperation on the
issues or problems prompting the proposed sanction.
(2) CLASSIFIED
CONSULTATIONS.—Such con-
sultations may be conducted on a classified basis if
disclosure would threaten the national security of
the United States.
(c) PUBLIC HEARINGS; RECORD.—The President
shall publish a notice in the Federal Register of the oppor-
tunity for interested persons to submit comments on any
proposed new unilateral economic sanction.
(d) REQUIREMENTS FOR EXECUTIVE BRANCH SANC-
TIONS.—Any new unilateral economic sanction imposed by
the President—
(1) shall—
(A) include an assessment of whether the
sanction is likely to achieve a specific United
States foreign policy or national security objec-
tive within a reasonable period of time, which
shall be specified, and whether the achievement
of the objectives of the sanction outweighs any
costs to United States national interests;
(B) provide for contract sanctity, except in
the case of a contract—
(i) the execution of which would be
contrary to law in the absence of the pro-
posed sanction, such as a contract to deal
illicitly in controlled substances;
(ii) that deals in assets that would be
frozen as a consequence of the proposed
sanction; or
(iii) that provides for the supply of ar-
ticles or services directly to a specific per-
son, corporation, government, or unit
thereof, or military entity, that is expressly
named as a target in the proposed sanc-
tion;
(C) terminate not later than 2 years after
the sanction is imposed, unless specifically ex-
tended by the President in accordance with the
procedures of this section;
(D)(i) be targeted as narrowly as possible
on foreign governments, entities, and officials
that are responsible for the conduct being tar-
geted; and
(ii) seek to minimize any adverse impact
on the humanitarian activities of United States
and foreign nongovernmental organizations in a
country against which the sanction may be im-
posed; and
(E) not include any restrictions on the ex-
port (including commercial or Federal financing
or support) of food, other agricultural commod-
ities (including fertilizer), medicine, medical
supplies, or medical equipment, other than re-
strictions imposed in response to national secu-
rity threats or restrictions involving a country
with which the United States is engaged in
armed conflict; and
(2) should provide, to the extent that the Sec-
retary of Agriculture finds that—
(A) a unilateral economic sanction is likely
to restrict exports of any agricultural com-
modity from the United States or is likely to
risk retaliation against exports of any agricul-
tural commodity from the United States, and
(B) the sanction is proposed to be im-
posed, or is likely to be imposed, on a country
or countries that constituted, in the preceding
calendar year, the market for more than 3 per-
cent of all export sales from the United States
of an agricultural commodity,
that the Secretary of Agriculture expand agricultural
export assistance under United States market devel-
opment, food assistance, or export promotion pro-
grams to offset the likely damage to incomes of pro-
ducers of the affected agricultural commodity or
commodities, to the maximum extent permitted by
law and by the obligations of the United States
under the Agreement on Agriculture referred to in
section 101(d)(2) of the Uruguay Round Agree-
ments Act (19 U.S.C. 3511(d)(2)).
(e) REPORT BY THE PRESIDENT.—
(1) IN GENERAL.—Prior to imposing any new
unilateral economic sanction, the President shall
provide a report to the appropriate committees on
the proposed sanction. The report shall include the
report of the International Trade Commission under
subsection (g) (if timely submitted prior to the filing
of the report). The report may be provided on a
classified basis if disclosure would threaten the na-
tional security of the United States. The President’s
report shall contain the following:
(A) An explanation of the foreign policy or
national security objective or objectives intended
to be achieved through the proposed sanction.
(B) An assessment of—
(i) the likelihood that the proposed
new unilateral economic sanction will
achieve its stated objectives within the
stated period of time; and
(ii) the impact of the proposed new
unilateral economic sanction on—
(I) humanitarian conditions, in-
cluding the impact on conditions in
any specific countries on which the
sanction is proposed to be imposed;
(II) humanitarian activities of
United States and foreign nongovern-
mental organizations;
(III) relations with United States
allies;
(IV) other United States national
security and foreign policy interests;
and
(V) countries and entities other
than those on which the sanction is
proposed to be imposed.
(C) A description and assessment of—
(i) diplomatic and other steps the
United States has taken to accomplish the
intended objectives of the proposed sanc-
tion;
(ii) the likelihood of multilateral adop-
tion of comparable measures;
(iii) comparable measures undertaken
by other countries;
(iv) alternative measures to promote
the same objectives, and an assessment of
their potential effectiveness;
(v) any obligations of the United
States under international treaties or trade
agreements with which the proposed sanc-
tion may conflict;
(vi) the likelihood that the proposed
sanction will lead to retaliation against
United States interests, including agricul-
tural interests; and
(vii) whether the achievement of the
objectives of the proposed sanction out-
weighs any likely costs to United States
foreign policy, national security, economic,
and humanitarian interests, including any
potential harm to United States business,
agriculture, and consumers, and any poten-
tial harm to the international reputation of
the United States as a reliable supplier of
products, technology, agricultural commod-
ities, and services.
(2) REPORT
ON
OTHER
SANCTIONS.—In the
case of any unilateral economic sanction that is im-
posed after the date of the enactment of this Act,
other than a new unilateral economic sanction de-
scribed in subsection (a)(1) or a sanction that is a
continuation of a sanction in effect on the date of
the enactment of this Act, the President shall, not
later than 30 days after imposing such sanction,
submit to the appropriate committees a report de-
scribed in paragraph (1) relating to such sanction.
Such report may be provided on a classified basis if
disclosure would threaten the national security of
the United States.
(f) 
REPORT
BY
THE
SECRETARY
OF
AGRI-
CULTURE.—Prior to the imposition of a new unilateral
economic sanction by the President, the Secretary of Agri-
culture shall submit to the appropriate committees a re-
port which shall contain an assessment of—
(1) the extent to which any country or countries
proposed to be sanctioned are markets that ac-
counted for, in the preceding calendar year, more
than 3 percent of all export sales from the United
States of any agricultural commodity;
(2) the likelihood that exports of agricultural
commodities from the United States will be affected
by the proposed sanction or by retaliation by any
country proposed to be sanctioned, including specific
commodities which are most likely to be affected;
(3) the likely effect on incomes of producers of
the specific commodities identified by the Secretary;
(4) the extent to which the proposed sanction
would permit foreign suppliers to replace United
States suppliers; and
(5) the likely effect of the proposed sanction on
the reputation of United States farmers as reliable
suppliers of agricultural commodities in general, and
of the specific commodities identified by the Sec-
retary.
(g) REPORT
BY
THE
UNITED
STATES
INTER-
NATIONAL TRADE COMMISSION.—Before imposing a uni-
lateral economic sanction, the President shall make a
timely request to the United States International Trade
Commission for a report on the likely short-term and long-
term costs of the proposed sanction to the United States
economy, including the potential impact on United States
trade performance, employment, and growth, the inter-