I
107TH CONGRESS
1ST SESSION
H. R. 2149
To extend trade authorities procedures with respect to reciprocal trade
agreements.
IN THE HOUSE OF REPRESENTATIVES
JUNE 13, 2001
Mr. CRANE (for himself, Mr. THOMAS, Mr. DREIER, Mr. HASTERT, Mr.
ARMEY, Mr. DELAY, Mr. COMBEST, Mr. KOLBE, Mr. SHAW, Mrs. JOHN-
SON of Connecticut, Mr. HOUGHTON, Mr. HERGER, Mr. MCCRERY, Mr.
CAMP, Mr. RAMSTAD, Mr. NUSSLE, Mr. SAM JOHNSON of Texas, Ms.
DUNN of Washington, Mr. COLLINS, Mr. PORTMAN, Mr. WATKINS of
Oklahoma, Mr. HAYWORTH, Mr. WELLER, Mr. HULSHOF, Mr. LEWIS of
Kentucky, Mr. BRADY of Texas, Mr. RYAN of Wisconsin, Mr. BASS, Mr.
BEREUTER, Mrs. BIGGERT, Mr. BLUNT, Mr. CANTOR, Mr. CALVERT, Mr.
COX, Mr. CUNNINGHAM, Mr. DICKS, Mr. FLAKE, Mr. FRELINGHUYSEN,
Mr. GOSS, Mr. HASTINGS of Washington, Mr. HYDE, Mr. ISSA, Mr.
JOHNSON of Illinois, Mr. KELLER, Mr. KIRK, Mr. KNOLLENBERG, Mr.
LAHOOD, Mr. LINDER, Mr. MCINNIS, Mr. MANZULLO, Mr. OSBORNE,
Mr. OTTER, Mr. OXLEY, Mr. PENCE, Ms. PRYCE of Ohio, Mr. REY-
NOLDS, Mr. SCHROCK, Mr. SESSIONS, Mr. SHAYS, Mr. SIMPSON, Mr.
TOOMEY, Mr. WATTS of Oklahoma, and Mrs. WILSON) 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 extend trade authorities procedures with respect to
reciprocal trade agreements.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE AND FINDINGS.
(a) SHORT TITLE.—This Act may be cited as the
‘‘Trade Promotion Authority Act of 2001’’.
(b) FINDINGS.—The Congress makes the following
findings:
(1) The expansion of international trade is vital
to the national security of the United States. Trade
is critical to the economic growth and strength of
the United States and to its leadership in the world.
Stable trading relationships promote security and
prosperity. Trade agreements today serve the same
purposes that security pacts played during the Cold
War, binding nations together through a series of
mutual rights and obligations. Leadership by the
United States in international trade fosters open
markets, democracy, and peace throughout the
world.
(2) The national security of the United States
depends on its economic security, which in turn is
founded upon a vibrant and growing industrial base.
Trade expansion has been the engine of economic
growth. Trade agreements maximize opportunities
for the critical sectors and building blocks of the
economy of the United States, such as information
technology, telecommunications and other leading
technologies, basic industries, capital equipment,
medical equipment, services, agriculture, environ-
mental technology, and intellectual property. Trade
will create new opportunities for the United States
and preserve the unparalleled strength of the United
States in economic, political, and military affairs.
The United States, secured by expanding trade and
economic opportunities, will meet the challenges of
the twenty-first century.
SEC. 2. TRADE NEGOTIATING OBJECTIVES.
(a) OVERALL TRADE NEGOTIATING OBJECTIVES.—
The overall trade negotiating objectives of the United
States for agreements subject to the provisions of section
3 are—
(1) to obtain more open, equitable, and recip-
rocal market access;
(2) to obtain the reduction or elimination of
barriers and distortions 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; and
(4) to foster economic growth, raise living
standards, and promote full employment in the
United States and to enhance the global economy.
(b) PRINCIPAL TRADE NEGOTIATING OBJECTIVES.—
(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 agreements, with par-
ticular attention to those tariff categories cov-
ered in section 111(b) of the Uruguay Round
Agreements Act (19 U.S.C. 3521(b)).
(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
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, forced technology transfers, and
other unreasonable barriers to the establish-
ment and operation of investments;
(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
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 meeting enforce-
ment obligations under that agreement;
and
(II) ensuring that the provisions of
any multilateral or bilateral trade agree-
ment governing intellectual property rights
that is entered into by the United States
reflect a standard of protection similar to
that found in United States law;
(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;
(iv) ensuring that standards of protec-
tion and enforcement keep pace with tech-
nological developments, and in particular
ensuring that rightholders have the legal
and technological means to control the use
of their works through the internet and
other global communication media, and to
prevent the unauthorized use of their
works; and
(v) providing strong enforcement of
intellectual 
property 
rights, 
including
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) IMPROVEMENT OF THE WTO AND MULTI-
LATERAL TRADE AGREEMENTS.—The principal ne-
gotiating objectives of the United States regarding
the improvement of the World Trade Organization,
the Uruguay Round Agreements, and other multilat-
eral and bilateral trade agreements are—
(A) to achieve full implementation and ex-
tend the coverage of the World Trade Organiza-
tion and such agreements to products, sectors,
and conditions of trade not adequately covered;
and
(B) to expand country participation in and
enhancement of the Information Technology
Agreement and other trade agreements.
(7) REGULATORY
PRACTICES.—The principal
negotiating objectives of the United States regarding
the use of government regulation or other practices
by foreign governments to provide a competitive ad-
vantage to their domestic producers, service pro-
viders, or investors and thereby reduce market ac-
cess for United States goods, services, and invest-
ments are—
(A) to achieve increased transparency and
opportunity for the participation of affected
parties in the development of regulations;
(B) to require that proposed regulations be
based on sound science, cost-benefit analysis,
risk assessment, or other objective evidence;
and
(C) to achieve the elimination of govern-
ment measures such as price controls and ref-
erence pricing which deny full market access for
United States products.
(8) ELECTRONIC
COMMERCE.—The principal
negotiating objectives of the United States with re-
spect to electronic commerce are—
(A) to ensure that current obligations,
rules, disciplines, and commitments under the
World Trade Organization apply to electronic
commerce;
(B) to ensure that—
(i) electronically delivered goods and
services receive no less favorable treatment
under trade rules and commitments than
like products delivered in physical form;
and
(ii) the classification of such goods
and services ensures the most liberal trade
treatment possible;
(C) to ensure that governments refrain
from implementing trade-related measures that
impede electronic commerce;
(D) where legitimate policy objectives re-
quire domestic regulations that affect electronic
commerce, to obtain commitments that any
such regulations are the least restrictive on
trade, nondiscriminatory, and transparent, and
promote an open market environment; and
(E) to extend the moratorium of the World
Trade Organization on duties on electronic
transmissions.
(9) RECIPROCAL TRADE IN AGRICULTURE.—(A)
The principal negotiating objective of the United
States with respect to agriculture is to obtain com-
petitive opportunities for United States exports of
agricultural commodities in foreign markets substan-
tially equivalent to the competitive opportunities af-
forded foreign exports in United States markets and
to achieve fairer and more open conditions of trade
in bulk, specialty crop, and value-added commodities
by—
(i) reducing or eliminating, by a date cer-
tain, tariffs or other charges that decrease mar-
ket opportunities for United States exports—
(I) giving priority to those products
that are subject to significantly higher tar-
iffs or subsidy regimes of major producing
countries; and
(II) providing reasonable adjustment
periods for United States import-sensitive
products, in close consultation with the
Congress on such products before initiating
tariff reduction negotiations;
(ii) reducing tariffs to levels that are the
same as or lower than those in the United
States;
(iii) reducing or eliminating subsidies that
decrease market opportunities for United States
exports or unfairly distort agriculture markets
to the detriment of the United States;
(iv) allowing the preservation of programs
that support family farms and rural commu-
nities but do not distort trade;
(v) developing disciplines for domestic sup-
port programs, so that production that is in ex-
cess of domestic food security needs is sold at
world prices;
(vi) eliminating Government policies that
create price-depressing surpluses;
(vii) eliminating state trading enterprises
whenever possible;
(viii) developing, strengthening, and clari-
fying rules and effective dispute settlement
mechanisms to eliminate practices that unfairly
decrease United States market access opportu-
nities or distort agricultural markets to the det-
riment of the United States, particularly with
respect 
to 
import-sensitive 
products,
including—
(I) unfair or trade-distorting activities
of state trading enterprises and other ad-
ministrative mechanisms, with emphasis on
requiring price transparency in the oper-
ation of state trading enterprises and such
other mechanisms in order to end cross
subsidization, price discrimination, and
price undercutting;
(II) unjustified trade restrictions or
commercial requirements, such as labeling,
that affect new technologies, including bio-
technology;
(III) 
unjustified 
sanitary 
or
phytosanitary restrictions, including those
not based on scientific principles in con-
travention of the Uruguay Round Agree-
ments;
(IV) other unjustified technical bar-
riers to trade; and
(V) restrictive rules in the administra-
tion of tariff rate quotas;
(ix) eliminating practices that adversely af-
fect trade in perishable or cyclical products,
while improving import relief mechanisms to
recognize the unique characteristics of perish-
able and cyclical agriculture;
(x) taking into account whether a party to
the negotiations has failed to adhere to the pro-
visions of already existing trade agreements
with the United States or has circumvented ob-
ligations under those agreements;
(xi) taking into account whether a product
is subject to market distortions by reason of a
failure of a major producing country to adhere
to the provisions of already existing trade
agreements with the United States or by the
circumvention by that country of its obligations
under those agreements;
(xii) otherwise ensuring that countries that
accede to the World Trade Organization have
made meaningful market liberalization commit-
ments in agriculture;
(xiii) taking into account the impact that
agreements covering agriculture to which the
United States is a party, including the North
American Free Trade Agreement, have on the
United States agricultural industry; and
(xiv) maintaining bona fide food assistance
programs and preserving United States market
development and export credit programs.
(B)(i) Before commencing negotiations with re-
spect to agriculture, the United States Trade Rep-
resentative, in consultation with the Congress, shall
seek to develop a position on the treatment of sea-
sonal and perishable agricultural products to be em-
ployed in the negotiations in order to develop an
international consensus on the treatment of seasonal
or perishable agricultural products in investigations
relating to dumping and safeguards and in any other
relevant area.
(ii) The negotiating objective provided in sub-
paragraph (A) applies with respect to agricultural
matters to be addressed in any trade agreement en-
tered into under section 3(a) or (b), including any
trade agreement entered into under section 3(a) or
(b) that provides for accession to a trade agreement
to which the United States is already a party, such
as the North American Free Trade Agreement and
the United States-Canada Free Trade Agreement.
(10) WTO EXTENDED
NEGOTIATIONS.—The
principal negotiating objectives of the United States
regarding trade in civil aircraft are those set forth
in section 135(c) of the Uruguay Round Agreements
Act (19 U.S.C. 3355(c)) and regarding rules of ori-
gin are the conclusion of an agreement described in
section 132 of that Act (19 U.S.C. 3552).
(c) OTHER
PRESIDENTIAL
OBJECTIVES.—If the
President determines that an issue not described in sub-
section (b) would be appropriate for trade negotiations,
provisions relating to that issue may be included in a trade
agreement or agreements entered into under section 3, if
those provisions—
(1) are directly related to trade;
(2) are consistent with the sovereignty of the
United States;
(3) are trade expanding and not protectionist;
and
(4) do not affect a country’s ability to make
changes to its laws that are consistent with sound
macroeconomic development.
(d) CONSULTATIONS.—
(1) CONSULTATIONS WITH CONGRESSIONAL AD-
VISERS AND ENFORCEMENT OF THE TRADE LAWS.—
In the course of negotiations conducted under this
Act, the United States Trade Representative shall—
(A) consult closely and on a timely basis
with, and keep fully apprised of the negotia-
tions, the Congressional Oversight Group ap-
pointed under section 7 with respect to the ne-
gotiations; and
(B) preserve the ability of the United
States to enforce rigorously its trade laws, in-
cluding the antidumping and countervailing
duty laws, and avoid agreements which lessen
the effectiveness of domestic and international
disciplines on unfair trade, especially dumping
and subsidies, 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 concessions.
(2) CONSULTATION BEFORE AGREEMENT INI-
TIALED.—In the course of negotiations conducted
under this Act, the United States Trade Representa-
tive shall—
(A) consult closely and on a timely basis
(including immediately before initialing an
agreement) with, and keep fully apprised of the
negotiations, the congressional advisers for
trade policy and negotiations appointed under
section 161 of the Trade Act of 1974 (19
U.S.C. 2211), the Committee on Ways and
Means of the House of Representatives, and the
Committee on Finance of the Senate; and
(B) with regard to any negotiations and
agreement relating to agricultural trade, also
consult closely and on a timely basis (including
immediately before initialing an agreement)
with, and keep fully apprised of the negotia-
tions, the Committee on Agriculture of the
House of Representatives and the Committee
on Agriculture, Nutrition, and Forestry of the
Senate.
(e) ADHERENCE TO OBLIGATIONS UNDER URUGUAY
ROUND AGREEMENTS.—In determining whether to enter
into negotiations with a particular country, the President
shall take into account the extent to which that country
has implemented, or has accelerated the implementation
of, its obligations under the Uruguay Round Agreements.
SEC. 3. TRADE AGREEMENTS AUTHORITY.
(a) AGREEMENTS REGARDING TARIFF BARRIERS.—
(1) IN GENERAL.—Whenever the President de-
termines that one or more existing duties or other
import restrictions of any foreign country or the
United States are unduly burdening and restricting
the foreign trade of the United States and that the
purposes, policies, and objectives of this Act will be
promoted thereby, the President—
(A) may enter into trade agreements with
foreign countries before—
(i) June 1, 2005; or
(ii) June 1, 2007, if trade authorities
procedures are extended under subsection
(c); and
(B) may, subject to paragraphs (2) and
(3), proclaim—
(i) such modification or continuance
of any existing duty,
(ii) such continuance of existing duty-
free or excise treatment, or
(iii) such additional duties,
as the President determines to be required or
appropriate to carry out any such trade agree-
ment.
The President shall notify the Congress of the Presi-
dent’s intention to enter into an agreement under
this subsection.
(2) LIMITATIONS.—No proclamation may be
made under paragraph (1) that—
(A) reduces any rate of duty (other than a
rate of duty that does not exceed 5 percent ad
valorem on the date of the enactment of this
Act) to a rate of duty which is less than 50 per-
cent of the rate of such duty that applies on
such date of enactment; or
(B) increases any rate of duty above the
rate that applied on the date of the enactment
of this Act.
(3) AGGREGATE REDUCTION; EXEMPTION FROM
STAGING.—
(A) AGGREGATE REDUCTION.—Except as
provided in subparagraph (B), the aggregate re-
duction in the rate of duty on any article which
is in effect on any day pursuant to a trade
agreement entered into under paragraph (1)
shall not exceed the aggregate reduction which
would have been in effect on such day if—
(i) a reduction of 3 percent ad valo-
rem or a reduction of one-tenth of the total
reduction, whichever is greater, had taken
effect on the effective date of the first re-
duction proclaimed under paragraph (1) to
carry out such agreement with respect to
such article; and
(ii) a reduction equal to the amount
applicable under clause (i) had taken effect
at 1-year intervals after the effective date
of such first reduction.
(B) 
EXEMPTION
FROM
STAGING.—No
staging is required under subparagraph (A)
with respect to a duty reduction that is pro-
claimed under paragraph (1) for an article of a
kind that is not produced in the United States.
The United States International Trade Com-
mission shall advise the President of the iden-
tity of articles that may be exempted from stag-
ing under this subparagraph.
(4) ROUNDING.—If the President determines
that such action will simplify the computation of re-
ductions under paragraph (3), the President may
round an annual reduction by an amount equal to
the lesser of—
(A) the difference between the reduction
without regard to this paragraph and the next
lower whole number; or
(B) one-half of 1 percent ad valorem.
(5) OTHER LIMITATIONS.—A rate of duty re-
duction that may not be proclaimed by reason of
paragraph (2) may take effect only if a provision au-
thorizing such reduction is included within an imple-
menting bill provided for under section 5 and that
bill is enacted into law.
(6) OTHER TARIFF MODIFICATIONS.—Notwith-
standing paragraphs (1)(B) and (2) through (5),
and subject to the consultation and layover require-
ments of section 115 of the Uruguay Round Agree-
ments Act, the President may proclaim the modifica-
tion of any duty or staged rate reduction of any duty
set forth in Schedule XX, as defined in section 2(5)
of that Act, if the United States agrees to such
modification or staged rate reduction in a negotia-
tion for the reciprocal elimination or harmonization
of duties under the auspices of the World Trade Or-
ganization.
(7) AUTHORITY
UNDER
URUGUAY
ROUND
AGREEMENTS ACT NOT AFFECTED.—Nothing in this
subsection shall limit the authority provided to the
President under section 111(b) of the Uruguay
Round Agreements Act (19 U.S.C. 3521(b)).
(b) AGREEMENTS REGARDING TARIFF AND NON-
TARIFF BARRIERS.—
(1) IN GENERAL.—(A) Whenever the President
determines that—
(i) one or more existing duties or any other
import restriction 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; or
(ii) the imposition of any such barrier or
distortion is likely to result in such a burden,
restriction, or effect;
and that the purposes, policies, and objectives of this
Act will be promoted thereby, the President may
enter into a trade agreement described in subpara-
graph (B) during the period described in subpara-
graph (C).
(B) The President may enter into a trade
agreement under subparagraph (A) with foreign
countries providing for—
(i) the reduction or elimination of a duty,
restriction, barrier, or other distortion described
in subparagraph (A), or
(ii) the prohibition of, or limitation on the
imposition of, such barrier or other distortion.
(C) The President may enter into a trade
agreement under this paragraph before—
(i) June 1, 2005; or
(ii) June 1, 2007, if trade authorities pro-
cedures are extended under subsection (c).
(2) CONDITIONS.—A trade agreement may be
entered into under this subsection only if such
agreement makes progress in meeting the applicable
objectives described in section 2(a) and (b) and the
President satisfies the conditions set forth in section
4.
(3) BILLS QUALIFYING FOR TRADE AUTHORI-
TIES PROCEDURES.—(A) 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 which contains provi-
sions described in subparagraph (B) to the same ex-
tent as such section 151 applies to implementing
bills under that section. A bill to which this para-
graph applies shall hereafter in this Act be referred
to as an ‘‘implementing bill’’.
(B) The provisions referred to in subparagraph
(A) are—
(i) a provision approving a trade agree-
ment entered into under this subsection and ap-
proving the statement of administrative action,
if any, proposed to implement such trade agree-
ment; and
(ii) if changes in existing laws or new stat-
utory authority are required to implement such
trade agreement or agreements, provisions, nec-
essary or appropriate to implement such trade
agreement or agreements, either repealing or
amending existing laws or providing new statu-
tory authority, except that an implementing bill
may include provisions to implement provisions
in a trade agreement to which section 2(c) ap-
plies only if those provisions meet the criteria
set forth in paragraphs (1) through (4) of that
section.
(c) EXTENSION DISAPPROVAL PROCESS FOR CON-
GRESSIONAL TRADE AUTHORITIES PROCEDURES.—
(1) IN GENERAL.—Except as provided in sec-
tion 5(b)—
(A) the trade authorities procedures apply
to implementing bills submitted with respect to
trade agreements entered into under subsection
(b) before July 1, 2005; and
(B) the trade authorities procedures shall
be extended to implementing bills submitted
with respect to trade agreements entered into
under subsection (b) after June 30, 2005, and
before July 1, 2007, if (and only if)—
(i) the President requests such exten-
sion under paragraph (2); and
(ii) neither House of the Congress
adopts an extension disapproval resolution
under paragraph (5) before June 1, 2005.
(2) REPORT
TO
CONGRESS
BY
THE
PRESI-
DENT.—If the President is of the opinion that the
trade authorities procedures should be extended to
implementing bills described in paragraph (1)(B),
the President shall submit to the Congress, not later
than March 1, 2005, a written report that contains
a request for such extension, together with—
(A) a description of all trade agreements
that have been negotiated under subsection (b)
and the anticipated schedule for submitting
such agreements to the Congress for approval;
(B) a description of the progress that has
been made in negotiations to achieve the pur-
poses, policies, and objectives of this Act, and
a statement that such progress justifies the
continuation of negotiations; and
(C) a statement of the reasons why the ex-
tension is needed to complete the negotiations.
(3) REPORT TO CONGRESS BY THE ADVISORY
COMMITTEE.—The President shall promptly inform
the Advisory Committee for Trade Policy and Nego-
tiations established under section 135 of the Trade
Act of 1974 (19 U.S.C. 2155) of the President’s de-
cision to submit a report to the Congress under
paragraph (2). The Advisory Committee shall submit
to the Congress as soon as practicable, but not later
than May 1, 2005, a written report that contains—
(A) its views regarding the progress that
has been made in negotiations to achieve the
purposes, policies, and objectives of this Act;
and