I 
110TH CONGRESS 
2D SESSION 
H. R. 7014 
To provide for the renegotiation of the North American Free Trade 
Agreement. 
IN THE HOUSE OF REPRESENTATIVES 
SEPTEMBER 23, 2008 
Mr. ENGLISH of Pennsylvania introduced the following bill; which was referred 
to the Committee on Ways and Means, and in addition to the Committees 
on Rules and the Budget, for a period to be subsequently determined by 
the Speaker, in each case for consideration of such provisions as fall with-
in the jurisdiction of the committee concerned 
A BILL 
To provide for the renegotiation of the North American Free 
Trade Agreement. 
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 ‘‘NAFTA Modernization 
Trade Negotiating Authority Act’’. 
SEC. 2. FINDINGS. 
The Congress makes the following findings: 
(1) Trade among NAFTA members more than 
tripled from $297,000,000,000 to $930,000,000,000 
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between 1993 and 2007. United States foreign di-
rect investment in Mexico rose by 259 percent and 
Mexican foreign direct investment in the United 
States increased by 244 percent. 
(2) United States exports to Mexico rose 91 
percent from 1994 to 2003, compared to an aggre-
gate of 41 percent to all countries in the world. 
United States imports from Mexico increased by 179 
percent, compared to an aggregate of 89 percent 
from all countries in the world. 
(3) The United States International Trade 
Commission estimated that NAFTA tariff pref-
erences accounted for one-third of United States im-
port growth from Mexico and 13 percent of growth 
of United States exports to Mexico. 
(4) The Congressional Budget Office suggested 
that 85 percent of United States export growth to 
Mexico and 91 percent of United States import 
growth from Mexico would have occurred without 
NAFTA. 
(5) Despite the aggregate growth in trade and 
investment, NAFTA’s share of the trade deficit has 
more than doubled from nearly 8 percent to 20 per-
cent over the past 14 years. This reflects the shift 
in the United States trade balance with Mexico from 
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a $2,000,000,000 surplus to a $74,000,000,000 def-
icit. The trade deficit with Canada is now nearly six 
times what it was in 1993 (an increase from 
$11,000,000,000 to $65,000,000,000). 
(6) The trade surplus in services has fallen 
from $92,000,000,000 in 1997 to $56,000,000,000 
in 2005; in advanced technology products, a surplus 
of $4,500,000,000 in 2001 declined to a deficit of 
$44,000,000,000 by 2005; and the long-time surplus 
in agriculture has virtually disappeared. 
(7) Imported oil is a driving force behind the 
United States trade deficit, accounting for 57 per-
cent of the deficit in January 2008. 
(8) Since NAFTA’s inception, the same 2 prod-
ucts (road vehicles and petroleum) have accounted 
for one-third of United States imports from Mexico 
and Canada each year. Road vehicles (especially ve-
hicle parts) and machinery have remained the top 2 
exports, accounting for one-half of United States ex-
ports to Mexico and Canada. 
(9) Mexico is the leading export destination for 
several United States agricultural products, includ-
ing beef, rice, soybean meal, and apples. It is the 
second leading export market for United States 
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corn, soybeans and oils, and third for pork, poultry, 
eggs, and cotton. 
(10) The 5 largest United States export sectors 
in 2007 were nuclear machinery and appliances, 
electrical machinery and equipment, automobiles, 
aircraft, and optical, photographic, and medical 
equipment. 
(11) United States exports and imports each 
saw a marginal growth of 2 percent in 1994. In 
2001, the United States experienced an 11 percent 
marginal growth in exports and 8 percent marginal 
growth in imports. 
(12) Net United States employment increased 
by 24 percent between 1993 and 2007. Since 
NAFTA went into effect, all 50 States have experi-
enced job growth of at least 12 percent. Contrary to 
these statistics, the Economic Policy Institute esti-
mates that 500,000 jobs are lost each year due to 
trade. A study by the Commission argues that 
NAFTA had a minimal effect on aggregate job 
growth if any at all. 
(13) Between 1994 and 2002, more than 
500,000 jobs were lost due to NAFTA, many of 
which were from the manufacturing sector. The Eco-
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nomic Policy Institute estimates that in reality more 
than 1,000,000 have been lost. 
(14) Between 1993 and 2006, the value of out-
put in manufacturing increased by 50 percent. How-
ever, United States manufacturing’s share of gross 
domestic product (GDP) declined from 16 percent to 
12 percent. 
(15) The real hourly compensation in the 
United States business sector rose by 1.5 percent 
each year between 1993 and 2007. 
(16) In Mexico, real wages are actually lower 
and the number of people in poverty has risen from 
62,000,000 to 69,000,000 as of 2003. However, 
most studies attribute lower wages more to the peso 
crisis of 1994, which caused a 25 percent fall in real 
wages in Mexico, and other economic factors rather 
than NAFTA. 
(17) The United States International Trade 
Commission suggests that trade in general has con-
tributed to no more than 10 to 20 percent of the ris-
ing United States income gap between more-skilled 
and less-skilled workers. 
(18) The number of people emigrating illegally 
from Mexico to the United States is estimated to 
have doubled since NAFTA went into effect. 
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SEC. 3. TRADE NEGOTIATING OBJECTIVES. 
(a) OVERALL TRADE NEGOTIATING OBJECTIVES.— 
The overall trade negotiating objectives of the United 
States for an agreement subject to the provisions of sec-
tion 4 are— 
(1) to obtain more open, equitable, and recip-
rocal market access; 
(2) to obtain the reduction or elimination of 
barriers and distortion that are directly related to 
trade and that decrease market opportunities for 
United States exports or otherwise distort United 
States trade; 
(3) to further strengthen the system of inter-
national trading disciplines and procedures, includ-
ing dispute settlement; 
(4) to foster economic growth, raise living 
standards, and promote full employment in the 
United States and to enhance the global economy; 
and 
(5) to ensure that domestic producers have ac-
cess to a full range of appropriate legal remedies 
against unfair trade practices, including adequate 
and accessible antidumping, countervailing duty, and 
safeguard mechanisms. 
(b) PRINCIPAL TRADE NEGOTIATING OBJECTIVES.— 
The principal trade negotiating objectives of the United 
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States for an agreement subject to the provisions of sec-
tion 4 are as follows: 
(1) TRADE BARRIERS AND DISTORTIONS.—The 
principal negotiating objectives of the United States 
regarding trade barriers and other trade distortions 
are— 
(A) to expand competitive market opportu-
nities for United States exports and to obtain 
fairer and more open conditions of trade by re-
ducing or eliminating tariff and nontariff bar-
riers and policies and practices of foreign gov-
ernments directly related to trade that decrease 
market opportunities for United States exports 
or otherwise distort United States trade; and 
(B) to obtain reciprocal tariff and non-
tariff barrier elimination. 
(2) TRADE IN SERVICES.—The principal negoti-
ating objective of the United States regarding trade 
in services is to reduce or eliminate barriers to inter-
national trade in services, including regulatory and 
other barriers that deny national treatment or un-
reasonably restrict the establishment or operations 
of service suppliers. 
(3) FOREIGN INVESTMENT.—The principal ne-
gotiating objective of the United States regarding 
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foreign investment is to reduce or eliminate artificial 
or trade-distorting barriers to trade-related foreign 
investment by— 
(A) reducing or eliminating exceptions to 
the principle of national treatment; 
(B) freeing the transfer of funds relating 
to investments; 
(C) reducing or eliminating performance 
requirements and other unreasonable barriers 
to the establishment and operation of invest-
ments; 
(D) seeking to establish standards for ex-
propriation and compensation for expropriation, 
consistent with United States legal principles 
and practice; and 
(E) providing meaningful procedures for 
resolving investment disputes. 
(4) INTELLECTUAL PROPERTY.—The principal 
negotiating objectives of the United States regarding 
trade-related intellectual property are— 
(A) to further promote adequate and effec-
tive protection of intellectual property rights, 
including through— 
(i)(I) ensuring accelerated and full 
implementation of the Agreement on 
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Trade-Related 
Aspects 
of 
Intellectual 
Property Rights referred to in section 
101(d)(15) of the Uruguay Round Agree-
ments Act (19 U.S.C. 3511(d)(15)), par-
ticularly with respect to United States in-
dustries whose products are subject to the 
lengthiest transition periods for full com-
pliance by developing countries with that 
Agreement; and 
(II) ensuring that an agreement sub-
ject to section 4 provides protection at 
least as strong as the protection afforded 
by chapter 17 of the NAFTA and the an-
nexes thereto; 
(ii) providing strong protection for 
new and emerging technologies and new 
methods of transmitting and distributing 
products embodying intellectual property; 
(iii) preventing or eliminating dis-
crimination with respect to matters affect-
ing the availability, acquisition, scope, 
maintenance, use, and enforcement of in-
tellectual property rights; and 
(iv) providing strong enforcement of 
intellectual 
property 
rights, 
including 
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through accessible, expeditious, and effec-
tive civil, administrative, and criminal en-
forcement mechanisms; and 
(B) to secure fair, equitable, and non-
discriminatory market access opportunities for 
United States persons that rely upon intellec-
tual property protection. 
(5) TRANSPARENCY.—The principal negotiating 
objective of the United States with respect to trans-
parency is to obtain broader application of the prin-
ciple of transparency through— 
(A) increased and more timely public ac-
cess to information regarding trade issues and 
the activities of international trade institutions; 
and 
(B) increased openness of dispute settle-
ment proceedings, including under the World 
Trade Organization. 
(6) RECIPROCAL TRADE IN AGRICULTURE.— 
(A) IN
GENERAL.—The principle negoti-
ating objective of the United States with re-
spect to agriculture is to obtain competitive op-
portunities for United States exports of agricul-
tural commodities in foreign markets, and to 
achieve fairer and more open conditions of 
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trade in bulk and value-added commodities 
by— 
(i) reducing or eliminating, by a date 
certain, tariffs or other charges that de-
crease market opportunities for United 
States exports, giving priority to those 
products that are subject to significantly 
higher tariffs or subsidy regimes of major 
producing countries; 
(ii) reducing or eliminating subsidies 
that decrease market opportunities for 
United States exports or unfairly distort 
agriculture markets to the detriment of the 
United States; 
(iii) developing, strengthening, and 
clarifying rules and effective dispute settle-
ment mechanisms to eliminate practices 
that unfairly decrease market access op-
portunities for the United States or distort 
agricultural markets to the detriment of 
the United States, particularly with respect 
to import-sensitive agricultural products, 
including— 
(I) unfair or trade-distorting ac-
tivities of State trading enterprises 
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and other administrative mechanisms, 
with emphasis on requiring price 
transparency in the operation of State 
trading enterprises and such other 
mechanisms; 
(II) unjustified trade restrictions 
or commercial requirements affecting 
new technologies, including biotech-
nologies; 
(III) 
unjustified 
sanitary 
or 
phytosanitary restrictions, including 
those not based on scientific principles 
in contravention of the Uruguay 
Round Agreements; 
(IV) other unjustified technical 
barriers to trade; and 
(V) restrictive rules in the ad-
ministration of tariff rate quotas; 
(iv) improving import relief mecha-
nisms to recognize the unique characteris-
tics of perishable and seasonal agricultural 
products; 
(v) taking into account whether a 
party to the negotiations has failed to ad-
here to the provisions of already existing 
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trade agreements with the United States 
or has circumvented obligations under 
those agreements; and 
(vi) taking into account whether a 
product is subject to market distortions by 
reason of a failure to adhere to the provi-
sions of the already existing trade agree-
ments with the United States or by the cir-
cumvention by that country of its obliga-
tions under those agreements. 
(B) SEASONAL AND PERISHABLE COMMOD-
ITIES.—Before commencing negotiations with 
respect to agriculture, the United States Trade 
Representative, in consultation with the Con-
gressional Oversight Group convened under sec-
tion 7, shall seek to develop a position on the 
treatment of seasonal and perishable agri-
culture products to be employed in the negotia-
tions in order to develop an international con-
sensus on the treatment of seasonal or perish-
able agricultural products in investigations re-
lating to dumping, countervailing duties, safe-
guards, and any other relevant area. 
(7) LABOR
AND
THE
ENVIRONMENT.—The 
principle negotiating objectives of the United States 
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regarding labor and the environment are the fol-
lowing: 
(A) To ensure parties to the agreement 
adopt, maintain, and enforce in their own laws 
and in practice the following basic internation-
ally recognized labor standards, as stated in the 
1998 ILO Declaration on the Fundamental 
Principles and Rights at Work: 
(i) Freedom of association. 
(ii) The effective recognition of the 
right to collective bargaining. 
(iii) The elimination of all forms of 
forced or compulsory labor. 
(iv) The effective abolition of child 
labor and a prohibition on the worst forms 
of child labor. 
(v) The elimination of discrimination 
in respect of employment and occupation. 
(B)(i) To recognize that parties to the 
agreement retain the right to exercise discretion 
with respect to investigatory, prosecutorial, reg-
ulatory, and compliance matters and to make 
decisions regarding the allocation of resources 
to enforcement with respect to other labor or 
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environmental matters determined to have high-
er priorities. 
(ii) To recognize that a country is effec-
tively enforcing its laws if a course of action or 
inaction reflects a reasonable exercise of such 
discretion, or results from a bona fide decision 
regarding the allocation of resources. 
(iii) To provide that a party does not vio-
late its obligations under the agreement— 
(I) by taking action under clause (i) 
or clause (ii); or 
(II) by exercising the right to estab-
lish domestic labor standards and levels of 
environmental protection. 
(C) To ensure that parties to the agree-
ment cannot derogate from labor obligations in 
the agreement in a manner affecting trade or 
investment. 
(D) To ensure that labor obligations in the 
agreement are subject to the same dispute set-
tlement, same enforcement mechanisms, and 
same criteria for selection of enforcement mech-
anisms as all other obligations under the agree-
ment. 
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(E) To strengthen the capacity of United 
States trading partners to promote respect for 
core labor standards. 
(F) To strengthen the capacity of United 
States trading partners to protect the environ-
ment through the promotion of sustainable de-
velopment. 
(G) To reduce or eliminate government 
practices or policies that unduly threaten sus-
tainable development. 
(H) To seek market access, through the 
elimination of tariffs and nontariff barriers, for 
United 
States 
environmental 
technologies, 
goods, and services. 
(I) To ensure that labor, environmental, 
health, or safety policies and practices of the 
parties to the agreement do not arbitrarily or 
unjustifiably discriminate against United States 
exports or serve as disguised barriers to trade. 
(J) To ensure that each party to the agree-
ment adopts, implements, and effectively en-
forces laws, regulations, and all other measures 
to fulfill that party’s obligations under each of 
the following multilateral environmental agree-
ments to which they are both parties, subject to 
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existing and future reservations to such agree-
ments: 
(i) The Convention on International 
Trade in Endangered Species. 
(ii) The Montreal Protocol on Ozone 
Depleting Substances. 
(iii) The Convention on Marine Pollu-
tion. 
(iv) 
The 
Inter-American 
Tropical 
Tuna Convention. 
(v) The Ramsar Convention on the 
Wetlands. 
(vi) The International Convention on 
the Regulation of Whaling. 
(vii) The Convention on Conservation 
of Antarctic Marine Living Resources. 
(K) To ensure that environmental obliga-
tions in the agreement are subject to the same 
dispute settlement, same enforcement mecha-
nisms, and same criteria for selection of en-
forcement mechanisms as all other obligations 
under the agreement. 
(8) TRADE REMEDY LAWS.—The principle ne-
gotiating objectives of the United States with respect 
to trade remedy laws are— 
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(A) to preserve the ability of the United 
States to enforce rigorously its trade laws, in-
cluding the antidumping, countervailing duty, 
and safeguard laws, and to avoid an agreement 
that lessens the effectiveness of domestic and 
international disciplines on unfair trade, espe-
cially dumping and subsidies, or that lessens 
the effectiveness of domestic and international 
safeguard provisions, in order to ensure that 
United States workers, agricultural producers, 
and firms can compete fully on fair terms and 
enjoy the benefits of reciprocal trade conces-
sions; and 
(B) to address and remedy market distor-
tions that lead to dumping and subsidization, 
including overcapacity, cartelization, and mar-
ket-access barriers. 
(c) SPECIAL NEGOTIATING OBJECTIVES.— 
(1) NAFTA-COUNTRY SPECIFIC OBJECTIVES.— 
Negotiators negotiating on behalf of the United 
States shall ensure that any new trade agreement 
entered into with Canada, Mexico, or both countries 
meets or exceeds the standards established in the 
areas of labor and environment, dispute settlement, 
intellectual property, services, foreign investment, 
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and agriculture of trade agreements negotiated 
under the Bipartisan Trade Promotion Authority 
Act of 2002. 
(2) DOMESTIC OBJECTIVES.—In pursuing the 
negotiating objectives under subsections (a), (b) and 
paragraph (1) of this subsection, the negotiators on 
behalf of the United States shall take into account 
United States domestic objectives, including the pro-
tection of health and safety, essential security, envi-
ronmental, consumer, and employment opportunity 
interests, and the law and regulations related there-
to. 
(3) APPLICABILITY
OF
TRADE
NEGOTIATION 
PROCEDURES.—Nothing in this subsection shall be 
construed to authorize the exercise of the trade ne-
gotiation procedures under section 4 to modify 
United States Federal law. 
SEC. 4. LIMITED TRADE NEGOTIATING AUTHORITY FOR 
THE 
PURPOSES 
OF 
MODERNIZING 
THE 
NORTH AMERICAN FREE TRADE AGREEMENT. 
(a) NORTH AMERICAN FREE TRADE AGREEMENT 
MODERNIZATION.— 
(1) IN GENERAL.—Whenever the President de-
termines that— 
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(A) the reduction or elimination of tariff or 
nontariff barriers of any foreign country or the 
United States or any other barrier to, or other 
distortion of, international trade unduly bur-
dens or restricts the foreign trade of the United 
States or adversely affects the United States 
economy, and 
(B) the imposition of any such barrier or 
distortion is likely to result in such a burden, 
restriction, or effect, and that the purposes, 
policies, priorities, and objectives of this Act 
will be promoted thereby, 
the President may enter into a trade agreement de-
scribed in paragraph (2) with Canada, Mexico, or 
both countries during the period described in para-
graph (3). 
(2) 
TRADE
AGREEMENT
DESCRIBED.—The 
President may enter into a trade agreement under 
paragraph (1) with Canada, Mexico, or both coun-
tries providing for— 
(A) the reduction or elimination of a duty, 
restriction, barrier, or other distortion described 
in paragraph (1); or 
(B) the prohibition of, or limitation on the 
imposition of, such barrier or other distortion. 
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(3) TIME
LIMITATION.—The President may 
enter into a trade agreement under this subsection 
before August 1, 2009. 
(b) CONDITIONS.—A trade agreement may be entered 
into under this section only if such agreement makes 
progress in meeting the applicable objectives described in 
subsections (a) and (b) of section 3 and the President sat-
isfies the conditions set forth in section 5. 
(c) BILLS QUALIFYING FOR TRADE AUTHORITIES 
PROCEDURES.— 
(1) IN
GENERAL.—The provisions of section 
151 of the Trade Act of 1974 (in this Act referred 
to as ‘‘trade authorities procedures’’) apply to a bill 
of either House of Congress that contains provisions 
described in paragraph (2) to the same extent as 
such section 151 applies to implementing bills under 
that section. A bill to which this subsection applies 
shall in this Act be referred to as an ‘‘implementing 
bill’’. 
(2) PROVISIONS
IN
IMPLEMENTING
BILLS.— 
The provisions referred to in paragraph (1) are— 
(A) a provision approving a trade agree-
ment entered into under this section and ap-
proving the statement of administrative action, 
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if any, proposed to implement such trade agree-
ment; and 
(B) if changes in existing laws or new stat-
utory authority are required to implement such 
trade agreement, provisions, necessary or ap-
propriate to implement such trade agreement, 
either repealing or amending existing laws or 
providing new statutory authority. 
(d) COMMENCEMENT OF NEGOTIATIONS.—In order 
to contribute to the continued economic expansion of the 
United States, the President shall commence negotiations 
under subsection (a) covering tariff and nontariff barriers 
affecting any industry, product, or service sector. In so 
doing, the President shall take into account all of the prin-
cipal negotiating objectives set forth in section 3(b). 
SEC. 5. CONSULTATIONS AND ASSESSMENT. 
(a) NOTICE AND CONSULTATION BEFORE NEGOTIA-
TION.—The President, with respect to any agreement that 
is subject to the section 4(a), shall— 
(1) provide, at least 90 calendar days before 
initiating negotiations, written notice to the Con-
gress of the President’s intention to enter into the 
negotiations and set forth therein the date the Presi-
dent intends to initiate such negotiations, the spe-
cific United States objectives for the negotiations, 
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and whether the President intends to seek an agree-
ment, or changes to an existing agreement; 
(2) before and after submission of the notice, 
consult regarding the negotiations with the Com-
mittee on Finance of the Senate and the Committee 
on Ways and Means of the House of Representa-
tives, such other committees of the House and Sen-
ate as the President deems appropriate, and the 
Congressional Oversight group convened under sec-
tion 7; and 
(3) upon the request of a majority of the mem-
bers of the Congressional Oversight Group under 
section 7(c), meet with the Congressional Oversight 
Group before initiating the negotiations or at any 
other time concerning the negotiations. 
(b) NEGOTIATIONS REGARDING AGRICULTURE.— 
(1) IN
GENERAL.—Before initiating negotia-
tions (with respect to an agreement subject to sec-
tion 4) the subject matter of which directly relates 
to the subject matter under section 3(b)(6)(A)(i) 
with any country, the President shall assess whether 
United States tariffs on agricultural products that 
were bound under the Uruguay Round Agreements 
are lower than the tariffs bound by that country. In 
addition, the President shall consider whether the 
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tariff levels bound and applied throughout the world 
with respect to imports from the United States are 
higher than United States tariffs and whether the 
negotiation provides an opportunity to address any 
such disparity. The President shall consult with the 
Committee on Ways and Means and the Committee 
on Agriculture of the House of Representatives and 
the Committee on Finance and the Committee on 
Agriculture, Nutrition, and Forestry of the Senate 
concerning the results of the assessment, whether it 
is appropriate for the United States to agree to fur-
ther tariff reductions based on the conclusions 
reached in the assessment, and how all applicable 
negotiating objectives will be met. 
(2) SPECIAL CONSULTATIONS ON IMPORT SEN-
SITIVE PRODUCTS.— 
(A) BEFORE INITIATING NEGOTIATIONS.— 
Before initiating negotiations (with respect to 
an agreement subject to section 4) with regard 
to agriculture, the United States Trade Rep-
resentative shall— 
(i) identify those agricultural products 
subject to tariff-rate quotas on the date of 
the enactment of this Act, and agricultural 
products subject to tariff reductions by the 
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United States as a result of the Uruguay 
Round Agreements, for which the rate of 
duty was reduced on January 1, 1995, to 
a rate that was not less than 97.5 percent 
of the rate of duty that applied to such ar-
ticle on December 31, 1994; 
(ii) consult with the Committee on 
Ways and Means and the Committee on 
Agriculture of the House of Representa-
tives and the Committee on Finance and 
the Committee on Agriculture, Nutrition, 
and Forestry of the Senate concerning— 
(I) whether any further tariff re-
ductions on the products identified 
under clause (i) should be appro-
priate, taking into account the impact 
of any such tariff reduction on the 
United States industry producing the 
product concerned; 
(II) whether the products so 
identified face unjustified sanitary or 
phytosanitary restrictions, including 
those not based on scientific principles 
in contravention of the Uruguay 
Round Agreements; and 
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(III) whether the countries par-
ticipating in the negotiations maintain 
export subsidies or other programs, 
policies, or practices that distort world 
trade in such products and the impact 
of such programs, policies, and prac-
tices on United States producers of 
the products; 
(iii) request that the Commission pre-
pare an assessment of the probable eco-
nomic effects of any such tariff reduction 
on the United States industry producing 
the product concerned and on the United 
States economy as a whole; and 
(iv) upon complying with clauses (i), 
(ii), and (iii), notify the Committee on 
Ways and Means and the Committee on 
Agriculture of the House of Representa-
tives and the Committee on Finance and 
the Committee on Agriculture, Nutrition, 
and Forestry of the Senate of those prod-
ucts identified under clause (i) for which 
the Trade Representative intends to seek 
tariff liberalization in the negotiations and 
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the reasons for seeking such tariff liberal-
ization. 
(B) AFTER NEGOTIATIONS COMMENCED.— 
If, after negotiations described in subparagraph 
(A) are commenced— 
(i) the United States Trade Rep-
resentative identifies any additional agri-
cultural product described in subparagraph 
(A)(i) for tariff reductions that were not 
the subject of a notification under subpara-
graph (A)(iv), or 
(ii) any additional agricultural prod-
uct described in subparagraph (A)(i) is the 
subject of a request for tariff reductions by 
a party to the negotiations, 
the Trade Representative shall, as soon as prac-
ticable, notify the committees referred to in 
subparagraph (A)(iv) of those products and the 
reasons for seeking such tariff reductions. 
(3) NEGOTIATIONS
REGARDING
THE
FISHING 
INDUSTRY.—Before initiating negotiations (with re-
spect to an agreement subject to section 4) the sub-
ject matter of which relates directly to fish or shell-
fish trade, the President shall consult with the Com-
mittee on Ways and Means and the Committee on 
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(1) CONSULTATION.—Before entering into a 
trade agreement under section 4(a), the President 
shall consult with— 
(A) the Committee on Ways and Means of 
the House of Representatives and the Com-
mittee on Finance of the Senate; 
(B) each other committee of the House 
and the Senate, and each joint committee of the 
Congress, that has jurisdiction over legislation 
involving subject matters that would be affected 
by the trade agreement; and 
(C) the Congressional Oversight Group 
convened under section 7. 
(2) SCOPE.—The consultation described in 
paragraph (1) shall include consultation with respect 
to— 
(A) the nature of the agreement; 
(B) how and to what extent the agreement 
will achieve the applicable purposes, policies, 
priorities, and objectives of this Act; and 
(C) the implementation of the agreement 
under section 6, including the general effect of 
the agreement on existing laws. 
(3) 
REPORT
REGARDING
UNITED
STATES 
TRADE REMEDY LAWS.—The President, at least 180 
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calendar days before the day on which the President 
enters into a trade agreement under section 4(a), 
shall report to the Committee on Ways and Means 
of the House of Representatives and the Committee 
on Finance of the Senate— 
(A) the range of proposals advanced in the 
negotiations with respect to that agreement, 
that may be in the final agreement, and that 
could require amendments to title VII of the 
Tariff Act of 1930 or to chapter 1 of title II 
of the Trade Act of 1974; and 
(B) how these proposals relate to the ob-
jectives described in section 3(b)(8). 
(e) ADVISORY COMMITTEE REPORTS.—The report 
required under section 135(e)(1) of the Trade Act of 1974 
regarding any trade agreement entered into under section 
4(a) of this Act shall be provided to the President, the 
Congress, and the United States Trade Representative not 
later than 30 days after the date on which the President 
notifies the Congress under section 6(a)(1)(A) of the 
President’s intention to enter into the agreement. 
(f) ITC ASSESSMENT.— 
(1) IN GENERAL.—The President, at least 90 
calendar days before the day on which the President 
enters into a trade agreement under section 4(a), 
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shall provide the Commission with the details of the 
agreement as it exists at that time and request the 
Commission to prepare and submit an assessment of 
the agreement as described in paragraph (2). Be-
tween the time the President makes the request 
under this paragraph and the time the Commission 
submits the assessment, the President shall keep the 
Commission current with respect to the details of 
the agreement. 
(2) ITC ASSESSMENT.—Not later than 90 cal-
endar days after the President enters into the agree-
ment, the Commission shall submit to the President 
and the Congress a report assessing the likely im-
pact of the agreement on the United States economy 
as a whole and on specific industry sectors, includ-
ing the impact the agreement will have on the gross 
domestic product, exports and imports, aggregate 
employment and employment opportunities, the pro-
duction, employment, and competitive position of in-
dustries likely to be significantly affected by the 
agreement, and the interests of United States con-
sumers. 
(3) REVIEW OF EMPIRICAL LITERATURE.—In 
preparing the assessment, the Commission shall re-
view available economic assessments regarding the 
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agreement, including literature regarding any sub-
stantially equivalent proposed agreement, and shall 
provide in its assessment a description of the anal-
yses used and conclusions drawn in such literature, 
and a discussion of areas of consensus and diver-
gence between the various analyses and conclusions, 
including those of the Commission regarding the 
agreement. 
SEC. 6. IMPLEMENTATION OF TRADE AGREEMENT. 
(a) IN GENERAL.— 
(1) NOTIFICATION
AND
SUBMISSION.—Any 
agreement entered into under section 4(a) shall 
enter into force with respect to the United States if 
(and only if)— 
(A) the President, at least 90 calendar 
days before the day on which the President en-
ters into the trade agreement, notifies the 
House of Representatives and the Senate of the 
President’s intention to enter into the agree-
ment, and promptly thereafter publishes notice 
of such intention in the Federal Register; 
(B) within 60 days after entering into the 
agreement, the President submits to the Con-
gress a description of those changes to existing 
laws that the President considers would be re-
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quired in order to bring the United States into 
compliance with the agreement; 
(C) after entering into the agreement, the 
President submits to the Congress, on a day on 
which both Houses of Congress are in session, 
a copy of the final legal text of the agreement, 
together with— 
(i) a draft of an implementing bill de-
scribed in section 4(c); 
(ii) a statement of any administrative 
action proposed to implement the trade 
agreement; and 
(iii) the supporting information de-
scribed in paragraph (2); and 
(D) the implementing bill is enacted into 
law. 
(2) SUPPORTING
INFORMATION.—The sup-
porting information required under paragraph 
(1)(C)(iii) consists of— 
(A) an explanation as to how the imple-
menting bill and proposed administrative action 
will change or affect existing law; and 
(B) a statement— 
(i) asserting that the agreement 
makes progress in achieving the applicable 
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purposes, policies, priorities, and objectives 
of this Act; and 
(ii) setting forth the reasons of the 
President regarding— 
(I) how and to what extent the 
agreement makes progress in achiev-
ing the applicable purposes, policies, 
and objectives referred to in clause (i); 
(II) whether and how the agree-
ment changes provisions of an agree-
ment previously negotiated; 
(III) how the agreement serves 
the interests of United States com-
merce; 
(IV) how the implementing bill 
meets the standards set forth in sec-
tion 4(c); and 
(V) how and to what extent the 
agreement makes progress in achiev-
ing the applicable purposes, policies, 
and objectives referred to in section 
3(c) regarding the promotion of cer-
tain priorities. 
(3) RECIPROCAL BENEFITS.—In order to en-
sure that a foreign country that is not a party to a 
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shall not be considered to be part of the agreement 
approved by the Congress and shall have no force or 
effect under United States law or in any dispute set-
tlement body. 
(b) LIMITATIONS ON TRADE AUTHORITIES PROCE-
DURES.— 
(1) FOR
LACK
OF
NOTICE
OR
CONSULTA-
TIONS.— 
(A) IN GENERAL.—The trade authorities 
procedures shall not apply to any implementing 
bill submitted with respect to a trade agreement 
entered into under section 4(a) if during the 
60-day period beginning on the date that one 
House of Congress agrees to a procedural dis-
approval resolution for lack of notice or con-
sultations with respect to such trade agreement, 
the other House separately agrees to a proce-
dural disapproval resolution with respect to 
such trade agreement. 
(B) PROCEDURAL DISAPPROVAL RESOLU-
TION.—(i) For purposes of this paragraph, the 
term ‘‘procedural disapproval resolution’’ means 
a resolution of either House of Congress, the 
sole matter after the resolving clause of which 
is as follows: ‘‘That the President has failed or 
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refused to notify or consult in accordance with 
the NAFTA Modernization Trade Promotion 
Authority Act on negotiations with respect to 
llllll and, therefore, the trade au-
thorities procedures under that Act shall not 
apply to any implementing bill submitted with 
respect to such trade agreement or agree-
ments.’’, with the blank space being filled with 
a description of the trade agreement with re-
spect to which the President is considered to 
have failed or refused to notify or consult. 
(ii) For purposes of clause (i), the Presi-
dent has ‘‘failed or refused to notify or consult 
in accordance with the NAFTA Modernization 
Trade Promotion Authority Act’’ on negotia-
tions with respect to a trade agreement if— 
(I) the President has failed or refused 
to consult (as the case may be) in accord-
ance with section 5 or this section with re-
spect to the negotiations or agreement; 
(II) guidelines under section 7(b) have 
not been developed or met with respect to 
the negotiations or agreement; 
(III) the President has not met with 
the Congressional Oversight Group pursu-
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ant to a request made under section 7(c) 
with respect to the negotiations or agree-
ment; or 
(IV) the agreement fails to make 
progress in achieving the purposes, poli-
cies, priorities, and objectives of this Act. 
(2) PROCEDURES FOR CONSIDERING RESOLU-
TIONS.—(A) Procedural disapproval resolutions— 
(i) in the House of Representatives— 
(I) may be introduced by any 
Member of the House; 
(II) shall be referred to the Com-
mittee on Ways and Means and, in 
addition, to the Committee on Rules; 
and 
(III) may not be amended by ei-
ther Committee; and 
(ii) in the Senate— 
(I) may be introduced by any 
Member of the Senate; 
(II) shall be referred to the Com-
mittee on Finance; and 
(III) may not be amended. 
(B) The provisions of section 152(d) and 
(e) of the Trade Act of 1974 (19 U.S.C. 
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2192(d) and (e)) (relating to the floor consider-
ation of certain resolutions in the House and 
Senate) apply to a procedural disapproval reso-
lution introduced with respect to a trade agree-
ment if no other procedural disapproval resolu-
tion with respect to that trade agreement has 
previously been reported in that House of Con-
gress by the Committee on Ways and Means or 
the Committee on Finance, as the case may be. 
(C) It is not in order for the House of 
Representatives to consider any procedural dis-
approval resolution not reported by the Com-
mittee on Ways and Means and, in addition, by 
the Committee on Rules. 
(D) It is not in order for the Senate to 
consider any procedural disapproval resolution 
not reported by the Committee on Finance. 
(c) RULES OF HOUSE OF REPRESENTATIVES AND 
SENATE.—Subsection (b) 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 are deemed a part of the 
rules of each House, respectively, and such proce-
dures supersede other rules only to the extent that 
they are inconsistent with such other rules; and 
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(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. CONGRESSIONAL OVERSIGHT GROUP. 
(a) MEMBERS AND FUNCTIONS.— 
(1) IN GENERAL.—By not later than 60 days 
after the date of the enactment of this Act, and not 
later than 30 days after the convening of each Con-
gress, the chairman of the Committee on Ways and 
Means of the House of Representatives and the 
chairman of the Committee on Finance of the Sen-
ate shall convene the Congressional Oversight 
Group. 
(2) MEMBERSHIP FROM THE HOUSE.—In each 
Congress, the Congressional Oversight Group shall 
be comprised of the following Members of the House 
of Representatives: 
(A) The chairman and ranking member of 
the Committee on Ways and Means, and 3 ad-
ditional members of such Committee (not more 
than 2 of whom are members of the same polit-
ical party). 
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(B) The chairman and ranking member, or 
their designees, of the committees of the House 
of Representatives that would have, under the 
Rules of the House of Representatives, jurisdic-
tion over provisions of law affected by a trade 
agreement negotiations for which are conducted 
at any time during that Congress and to which 
this Act would apply. 
(3) MEMBERSHIP FROM THE SENATE.—In each 
Congress, the Congressional Oversight Group shall 
also be comprised of the following members of the 
Senate: 
(A) The chairman and ranking member of 
the Committee on Finance and 3 additional 
members of such Committee (not more than 2 
of whom are members of the same political 
party). 
(B) The chairman and ranking member, or 
their designees, of the committees of the Senate 
that would have, under the Rules of the Senate, 
jurisdiction over provisions of law affected by a 
trade agreement negotiations for which are con-
ducted at any time during that Congress and to 
which this Act would apply. 
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(4) ACCREDITATION.—Each member of the 
Congressional Oversight Group described in para-
graph (2)(A) and (3)(A) shall be accredited by the 
United States Trade Representative on behalf of the 
President as an official adviser to the United States 
delegation in negotiations for any trade agreement 
to which this Act applies. Each member of the Con-
gressional Oversight Group described in paragraph 
(2)(B) and (3)(B) shall be accredited by the United 
States Trade Representative on behalf of the Presi-
dent as an official adviser to the United States dele-
gation in the negotiations by reason of which the 
member is in the Congressional Oversight Group. 
The Congressional Oversight Group shall consult 
with and provide advice to the Trade Representative 
regarding the formulation of specific objectives, ne-
gotiating strategies and positions, the development 
of the applicable trade agreement, and compliance 
and enforcement of the negotiated commitments 
under the trade agreement. 
(5) 
CHAIR.—The 
Congressional 
Oversight 
Group shall be chaired by the Chairman of the Com-
mittee on Ways and Means of the House of Rep-
resentatives and the Chairman of the Committee on 
Finance of the Senate. 
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(b) GUIDELINES.— 
(1) PURPOSE
AND
REVISION.—The United 
States Trade Representative, in consultation with 
the chairmen and ranking minority members of the 
Committee on Ways and Means of the House of 
Representatives and the Committee on Finance of 
the Senate— 
(A) shall, within 120 days after the date of 
the enactment of this Act, develop written 
guidelines to facilitate the useful and timely ex-
change of information between the Trade Rep-
resentative and the Congressional Oversight 
Group convened under this section; and 
(B) may make such revisions to the guide-
lines as may be necessary from time to time. 
(2) CONTENT.—The guidelines developed under 
paragraph (1) shall provide for, among other 
things— 
(A) regular, detailed briefings of the Con-
gressional Oversight Group regarding negoti-
ating objectives, including the promotion of cer-
tain priorities referred to in section 3(c), and 
positions and the status of the applicable nego-
tiations, beginning as soon as practicable after 
the Congressional Oversight Group is convened, 
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with more frequent briefings as trade negotia-
tions enter the final stage; 
(B) access by members of the Congres-
sional Oversight Group, and staff with proper 
security clearances, to pertinent documents re-
lating to the negotiations, including classified 
materials; 
(C) the closest practicable coordination be-
tween the Trade Representative and the Con-
gressional Oversight Group at all critical peri-
ods during the negotiations, including at nego-
tiation sites; and 
(D) after the applicable trade agreement is 
concluded, consultation regarding ongoing com-
pliance and enforcement of negotiated commit-
ments under the trade agreement. 
(c) REQUEST FOR MEETING.—Upon the request of 
a majority of the Congressional Oversight Group, the 
President shall meet with the Congressional Oversight 
Group before initiating negotiations with respect to a 
trade agreement under this Act, or at any other time con-
cerning the negotiations. 
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SEC. 8. ADDITIONAL IMPLEMENTATION AND ENFORCE-
MENT REQUIREMENTS. 
(a) IN GENERAL.—At the time the President submits 
to the Congress the final text of a trade agreement pursu-
ant to section 6(a)(1)(C), the President shall also submit 
a plan for implementing and enforcing the agreement. The 
implementation and enforcement plan shall include the fol-
lowing: 
(1) BORDER
PERSONNEL
REQUIREMENTS.—A 
description of additional personnel required at bor-
der entry points, including a list of additional cus-
toms and agricultural inspectors. 
(2) AGENCY STAFFING REQUIREMENTS.—A de-
scription of additional personnel required by Federal 
agencies responsible for monitoring and imple-
menting the agreement, including personnel required 
by the Office of the United States Trade Represent-
ative, the Department of Commerce, the Department 
of Agriculture (including additional personnel re-
quired to implement sanitary and phytosanitary 
measures in order to obtain market access for 
United States exports), the Department of the 
Treasury, and such other agencies as may be nec-
essary. 
(3) 
CUSTOMS
INFRASTRUCTURE
REQUIRE-
MENTS.—A description of the additional equipment 
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and facilities needed by U.S. Customs and Border 
Protection. 
(4) IMPACT
ON
STATE
AND
LOCAL
GOVERN-
MENTS.—A description of the impact the agreement 
will have on State and local governments as a result 
of increases in trade. 
(5) COST ANALYSIS.—An analysis of the costs 
associated with each of the items listed in para-
graphs (1) through (4). 
(b) BUDGET SUBMISSION.—The President shall in-
clude a request for the resources necessary to support the 
plan described in subsection (a) in the first budget that 
the President submits to the Congress after the submis-
sion of the plan. 
SEC. 9. CONFORMING AMENDMENTS. 
(a) IN GENERAL.—Title I of the Trade Act of 1974 
(19 U.S.C. 2111 et seq.) is amended as follows: 
(1) IMPLEMENTING BILL.— 
(A) 
Section 
151(b)(1) 
(19 
U.S.C. 
2191(b)(1)) is amended by striking ‘‘or section 
2105(a)(1) of the Bipartisan Trade Promotion 
Authority Act of 2002’’ and inserting ‘‘section 
2105(a)(1) of the Bipartisan Trade Promotion 
Authority Act of 2002, or section 6(a)(1) of the 
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NAFTA Modernization Trade Promotion Au-
thority Act’’. 
(B) 
Section 
151(c)(1) 
(19 
U.S.C. 
2191(c)(1)) is amended by striking ‘‘or section 
2105(a)(1) of the Bipartisan Trade Promotion 
Authority Act of 2002’’ and inserting ‘‘section 
2105(a)(1) of the Bipartisan Trade Promotion 
Authority Act of 2002, or section 6(a)(1) of the 
NAFTA Modernization Trade Promotion Au-
thority Act’’. 
(2) ADVICE FROM INTERNATIONAL TRADE COM-
MISSION.—Section 131 (19 U.S.C. 2151) is amend-
ed— 
(A) in subsection (a)— 
(i) in paragraph (1), by striking ‘‘or 
section 2103(a) or (b) of the Bipartisan 
Trade Promotion Authority Act of 2002,’’ 
and inserting ‘‘, section 2103(a) or (b) of 
the Bipartisan Trade Promotion Authority 
Act of 2002, or section 4(a) of the NAFTA 
Modernization Trade Promotion Authority 
Act,’’; and 
(ii) in paragraph (2), by inserting ‘‘or 
section 4(a) of the NAFTA Modernization 
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(1) COMMISSION.—The term ‘‘Commission’’ 
means the United States International Trade Com-
mission. 
(2) CORE LABOR STANDARDS.—The term ‘‘core 
labor standards’’ means— 
(A) the right of association; 
(B) the right to organize and bargain col-
lectively; 
(C) a prohibition on the use of any form 
of forced or compulsory labor; 
(D) a minimum age for the employment of 
children; and 
(E) acceptable conditions of work with re-
spect to minimum wages, hours of work, and 
occupational safety and health. 
(3) ILO.—The term ‘‘ILO’’ means the Inter-
national Labor Organization. 
(4) NAFTA.—The term ‘‘NAFTA’’ means the 
North American Free Trade Agreement. 
(5) NAFTA MEMBERS.—The term ‘‘NAFTA 
members’’ means the United States, Canada, and 
Mexico. 
(6) 
UNITED
STATES
PERSON.—The 
term 
‘‘United States person’’ means— 
(A) a United States citizen; 
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(B) a partnership, corporation, or other 
legal entity organized under the laws of the 
United States; and 
(C) a partnership, corporation, or other 
legal entity that is organized under the laws of 
a foreign country and is controlled by entities 
described in subparagraph (B) or United States 
citizens, or both. 
(7) URUGUAY ROUND AGREEMENTS.—The term 
‘‘Uruguay Round Agreements’’ has the meaning 
given that term in section 2(7) of the Uruguay 
Round Agreements Act (19 U.S.C. 3501(7)). 
(8) WORLD TRADE ORGANIZATION.—The term 
‘‘World Trade Organization’’ means the organization 
established pursuant to the WTO Agreement. 
(9) WTO 
AGREEMENT.—The term ‘‘WTO 
Agreement’’ means the Agreement Establishing the 
World Trade Organization entered into on April 15, 
1994. 
Æ 
VerDate Aug 31 2005 
07:44 Sep 25, 2008
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