I
104TH CONGRESS
2D SESSION
H. R. 4014
To require the President to certify whether the commitments made in the
side agreements on the environment and on labor to the North American
Free Trade Agreement are being met, and to remove certain benefits
from a country that is certified as not meeting those commitments.
IN THE HOUSE OF REPRESENTATIVES
AUGUST 2, 1996
Mr. WELDON of Pennsylvania (for himself, Mr. CLAY, Mr. QUINN, Mr.
MCHUGH, Mr. STEARNS, Mr. TRAFICANT, Mr. ENGLISH of Pennsylvania,
Mr. REGULA, Ms. KAPTUR, Mr. GOODLING, and Mr. NEY) introduced the
following bill; which was referred to the Committee on Ways and Means,
and in addition to the Committees on International Relations, and Bank-
ing and Financial Services, for a period to be subsequently determined
by the Speaker, in each case for consideration of such provisions as fall
within the jurisdiction of the committee concerned
A BILL
To require the President to certify whether the commitments
made in the side agreements on the environment and
on labor to the North American Free Trade Agreement
are being met, and to remove certain benefits from a
country that is certified as not meeting those commit-
ments.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
(A) air quality standards;
(B) water effluent standards; and
(C) hazardous waste disposal standards.
Each report under this paragraph shall be transmit-
ted to the President not later than 30 days before
the date on which the President is required to sub-
mit his report under paragraph (1).
(b) CERTIFICATIONS REGARDING LABOR AGREE-
MENT.—
(1) ANNUAL CERTIFICATIONS.—The President
shall, on the basis of the reports prepared under
paragraph (2), submit to the Congress, not later
than May 31 of each year, a report that certifies
whether or not each NAFTA country is meeting
commitments made in the North American Agree-
ment on Labor Cooperation to comply with the ob-
jectives of that Agreement to promote and improve
laws protecting worker rights and to promote com-
pliance with these laws by using appropriate meth-
ods such as—
(A) monitoring and on-site inspection by
trained;
(B) encouragement of voluntary compli-
ance by employers;
(C) mandatory reporting by employers to
appropriate governmental authorities; and
(E) enforcement actions.
(2) BASIS OF CERTIFICATION.—The Secretary
of Labor shall prepare for the President an annual
report on the enforcement by each NAFTA country
of its laws protecting worker rights. In doing so, the
Secretary shall consider the country’s enforcement of
such laws in accordance with the following labor
principles (as stated in the Preamble of the North
American Agreement on Labor Cooperation):
(A) Freedom of association.
(B) The right to bargain collectively.
(C) The right to strike.
(D) Prohibition on forced labor.
(E) Restrictions on labor by children and
young people.
(F) Minimum employment standards.
(G) Elimination of employment discrimina-
tion.
(H) Equal pay for men and women.
(I) Prevention of occupational accidents
and diseases.
(J) Compensation in cases of work acci-
dents and occupational diseases.
Each report under this paragraph shall be transmit-
ted to the President not later than 30 days before
the date on which the President is required to sub-
mit his report under paragraph (1).
SEC. 2. DENIAL OF CERTAIN BENEFITS.
(a) IN GENERAL.—In any case in which the Presi-
dent certifies in a report submitted under section 1 that
a NAFTA country is not meeting commitments made in
the North American Agreement on Environmental Co-
operation or the North American Agreement on Labor Co-
operation, then the following shall apply, beginning 30
days after the report is submitted, until the next report
is submitted under section 1:
(1) DENIAL OF UNITED STATES ASSISTANCE.—
That country may not receive any United States as-
sistance (other than humanitarian assistance), in-
cluding any loans or other extensions of credit or
credit guarantees by the United States.
(2) OPPOSITION
TO
ASSISTANCE
BY
INTER-
NATIONAL
FINANCIAL
INSTITUTIONS.—The Presi-
dent shall direct the United States Representative to
each international financial institution to use the
voice and vote of the United States to oppose any
loan or other extension of credit to that country.
(3) IMPOSITION
OF
TARIFFS.—The President
may impose on products of that country, notwith-
standing any other provision of law, tariffs, in addi-
tion to those that would otherwise apply, on prod-
ucts in those sectors of the economy directly related
to the failure of the country to meet the commit-
ments made in the applicable agreement.
(b) WAIVER.—The President may waive the applica-
tion of any provision of subsection (a) with respect to a
country if the President determines that it is in the na-
tional security interests of the United States to do so and
the President submits that determination, and the ration-
ale for the determination, to the Congress at least 30 days
before the waiver would take effect.
SEC. 3. DEFINITIONS.
As used in this Act:
(1) 
INTERNATIONAL
FINANCIAL
INSTITU-
TION.—The term ‘‘international financial institu-
tion’’ has the meaning given that term in section
1701(c)(2) of the International Financial Institu-
tions Act (22 U.S.C. 262r(c)(2)).
(2) NAFTA
COUNTRY.—The term ‘‘NAFTA
country’’ has the meaning given that term in section
2(4) of the North American Free Trade Agreement
Implementation Act (19 U.S.C. 3301(4)).
(3) NORTH AMERICAN AGREEMENT ON ENVI-
RONMENTAL
COOPERATION.—The 
term 
‘‘North
American Agreement on Environmental Coopera-
tion’’ has the meaning given that term in section
532(b)(2) of the North American Free Trade Agree-
ment Implementation Act (19 U.S.C. 3472(b)(2)).
(4) NORTH AMERICAN AGREEMENT ON LABOR
COOPERATION.—The term ‘‘North American Agree-
ment on Labor Cooperation’’ has the meaning given
that term in section 531(b)(2) of the North Amer-
ican Free Trade Agreement Implementation Act (19
U.S.C. 3471(b)(2)).
(5) UNITED
STATES
ASSISTANCE.—The term
‘‘United States assistance’’ means any program of
assistance or credits provided by the United States
to other countries under any provision of law.
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