I
105TH CONGRESS
1ST SESSION
H. R. 2022
To amend trade laws and related provisions to clarify the designation of
normal trade relations.
IN THE HOUSE OF REPRESENTATIVES
JUNE 24, 1997
Mr. CAPPS (for himself, Mr. MATSUI, Mr. DREIER, Mr. DOOLEY of California,
Mr. ROEMER, Mr. SALMON, Mr. FAZIO of California, and Mr. BEREU-
TER) introduced the following bill; which was referred to the Committee
on Ways and Means
A BILL
To amend trade laws and related provisions to clarify the
designation of normal trade relations.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. FINDINGS AND POLICY.
(a) FINDINGS.—The Congress makes the following
findings:
(1) Since the 18th century, the principle of
nondiscrimination among countries with which the
United States has trade relations, commonly re-
ferred to as ‘‘most-favored-nation’’ treatment, has
been a cornerstone of United States trade policy.
(2) Although the principle remains firmly in
place as a fundamental concept in United States
trade relations, the term ‘‘most-favored-nation’’ is a
misnomer which has led to public misunderstanding.
(3) It is neither the purpose nor the effect of
the most-favored-nation principle to treat any coun-
try as ‘‘most favored’’. To the contrary, the principle
reflects the intention to confer on a country the
same trade benefits that are conferred on any other
country, that is, the intention not to discriminate
among trading partners.
(4) The term ‘‘normal trade relations’’ is a
more accurate description of the principle of non-
discrimination as it applies to the tariffs applicable
generally to imports from United States trading
partners, that is, the general rates of duty set forth
in column 1 of the Harmonized Tariff Schedule of
the United States.
(b) POLICY.—It is the sense of the Congress that—
(1) the language used in United States laws,
treaties, agreements, executive orders, directives,
and regulations should more clearly and accurately
reflect the underlying principles of United States
trade policy; and
(2) accordingly, the term ‘‘normal trade rela-
tions’’ should, where appropriate, be substituted for
the term ‘‘most-favored-nation’’.
SEC. 2. CHANGE IN TERMINOLOGY.
(a) TRADE EXPANSION ACT OF 1962.—The heading
for section 251 of the Trade Expansion Act of 1962 (19
U.S.C. 1881) is amended to read as follows: ‘‘NORMAL
TRADE RELATIONS’’.
(b) TRADE ACT OF 1974.—(1) Section 402 of the
Trade Act of 1974 (19 U.S.C. 2432) is amended by strik-
ing ‘‘(most-favored-nation treatment)’’ each place it ap-
pears and inserting ‘‘(normal trade relations)’’.
(2) Section 601(9) of the Trade Act of 1974 (19
U.S.C. 2481(9)) is amended by striking ‘‘most-favored-na-
tion treatment’’ and inserting ‘‘trade treatment based on
normal trade relations (known under international law as
most-favored-nation treatment)’’.
(c) CFTA.—Section 302(a)(3)(C) of the United
States Canada Free-Trade Agreement Implementation
Act of 1988 (19 U.S.C. 2112 note) is amended by striking
‘‘the most-favored-nation rate of duty’’ each place it ap-
pears and inserting ‘‘the general subcolumn of the column
1 rate of duty set forth in the Harmonized Tariff Schedule
of the United States’’.
(d) NAFTA.—Section 202(n) of the North American
Free Trade Agreement Implementation Act (19 U.S.C.
3332(n)) is amended by striking ‘‘most-favored-nation’’.
(e) SEED ACT.—Section 2(c)(11) of the Support for
East European Democracy (SEED) Act of 1989 (22
U.S.C. 5401(c)(11)) is amended—
(1) by striking ‘‘(commonly referred to as ‘most
favored nation status’)’’, and
(2) by striking ‘‘MOST
FAVORED
NATION
TRADE
STATUS’’ in the heading and inserting
‘‘NORMAL TRADE RELATIONS’’.
(f) UNITED STATES-HONG KONG POLICY ACT OF
1992.—Section 103(4) of the United States-Hong Kong
Policy Act of 1992 (22 U.S.C. 5713(4)) is amended by
striking ‘‘(commonly referred to as ‘most-favored-nation
status’)’’.
SEC. 3. SAVINGS PROVISIONS.
Nothing in this Act shall affect the meaning of any
provision of law, Executive order, Presidential proclama-
tion, rule, regulation, delegation of authority, other docu-
ment, or treaty or other international agreement of the
United States relating to the principle of ‘‘most-favored-
nation’’ (or ‘‘most favored nation’’) treatment. Any Execu-
tive order, Presidential proclamation, rule, regulation, del-
egation of authority, other document, or treaty or other
international agreement of the United States that has
been issued, made, granted, or allowed to become effective
and that is in effect on the effective date of this Act, or
was to become effective on or after the effective date of
this Act, shall continue in effect according to its terms
until modified, terminated, superseded, set aside, or re-
voked in accordance with law.
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