(10) On August 18, 1997, a final report of a
dispute settlement panel under the WTO, upholding
claims of the United States, found that the ban by
the European Union on the use of hormones in live-
stock production is in violation of the obligations of
the European Union under the Agreement on the
Application of Sanitary and Phytosanitary Measures.
The panel affirmed that the ban is not based on
science, risk assessment, or relevant international
standards. This panel report and a report by the Ap-
pellate Body affirming the finding was adopted by
the WTO on February 13, 1998.
(11) On May 29, 1998, the WTO determined
through binding arbitration procedures that the
compliance period for the European Union to imple-
ment the rulings and recommendations of the WTO
on the beef hormone ban will end on May 13, 1999.
(12) As in the case of bananas, the European
Union seeks to abuse the system of dispute settle-
ment with endless delay, showing no signs of ever
coming into compliance.
(13) Together, these two WTO dispute settle-
ment cases represent important precedents for agri-
cultural trade in the areas of tariffs, quotas, import
licensing, services, and the use of sound science as
a basis for the application of sanitary and
phytosanitary standards.
(14) Successful resolution of these cases will
serve to indicate whether the new Uruguay Round
Agreements that went into effect in 1995 will oper-
ate as an effective means for the United States to
resolve trade disputes.
(15) Serious consequences are necessary to
counteract the European Union’s deplorable tactics
and threat to the dispute settlement system.
(16) Retaliation is a remedy of last resort. Nev-
ertheless, because the European Union has delib-
erately flaunted the internationally agreed rules of
dispute settlement, thereby jeopardizing United
States companies, workers, farmers, and ranchers,
serious and immediate action is necessary.
SEC. 3. ACTIONS IN RESPONSE TO EU BANANA REGIME.
(a) IN GENERAL.—Notwithstanding the provisions of
section 6, the Trade Representative shall, in accordance
with this section, take action under section 301(c)(1)(A)
and (B) of the Trade Act of 1974, as if a determination
had been made under section 304(a)(1) of that Act that
the practices of the European Union regarding the impor-
tation of bananas violate, or are inconsistent with, or oth-
erwise deny benefits to the United States under the Uru-
guay Round Agreements. Any such action to eliminate
such practices shall be devised so as to affect goods or
services of the European Union in an amount that is
equivalent in value to the burden or restriction being im-
posed by the European Union on United States commerce.
(b) PRELIMINARY
LIST
OF
ARTICLES
FOR
IN-
CREASED TARIFFS.—By not later than November 10,
1998, the Trade Representative shall publish, and provide
an opportunity for public comment on, a proposed list of
actions to be taken under subsection (a).
(c) FINAL LIST.—By not later than December 15,
1998, the Trade Representative, after taking into account
comments submitted by the public on the proposed list,
shall publish a final list of actions to be taken under sub-
section (a). Prior to publishing the final list, the Trade
Representative shall also 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 For-
estry of the Senate with respect to the composition of the
final list.
(d) IMPLEMENTATION
OF FINAL ACTIONS.—The
Trade Representative shall endeavor to take all action au-
thorized under Article 22.2 of the Understanding on Rules
and Procedures Governing the Settlement of Disputes,
and the Trade Representative shall proclaim the measures
included on the list published under subsection (c) to go
into effect on February 1, 1999, unless the Trade Rep-
resentative determines and certifies to the Congress
that—
(1) the Dispute Settlement Body has adopted a
report that—
(A) the rights of the United States under
the Uruguay Round Agreements are not being
denied by the practices of the European Union
regarding the importation of bananas; or
(B) the practices of the European Union
regarding the importation of bananas—
(i) are not a violation of, or inconsist-
ent with, the rights of the United States;
or
(ii) do not deny, nullify, or impair
benefits to the United States under the
Uruguay Round Agreements; or
(2) the European Union is taking satisfactory
measures to grant the rights of the United States
under the Uruguay Round Agreements;
(3) the European Union has—
(A) agreed to eliminate or phase out the
practices referred to in subsection (a); or
(B) agreed to an imminent solution to the
burden or restriction on United States com-
merce that is satisfactory to the Trade Rep-
resentative;
(4) it is impossible for the European Union to
achieve the results described in paragraph (2) or (3),
as appropriate, but the European Union agrees to
provide to the United States compensatory trade
benefits that are satisfactory to the Trade Rep-
resentative;
(5) in extraordinary cases, where the taking of
action under this section would have an adverse im-
pact on the United States economy substantially out
of proportion to the benefits of such action, taking
into account the impact of not taking such action on
the credibility of title III of the Trade Act of 1974
and the findings and provisions of this Act; or
(6) the taking of action under this section
would cause serious harm to the national security of
the United States.
(e) ARBITRATION.—In the event that the European
Union seeks arbitration under Article 22.6 of the Under-
standing on Rules and Procedures Governing the Settle-
ment of Disputes, the Trade Representative shall, notwith-
standing the requirements of subsection (d), proclaim the
measures included on the list published under subsection
(c) to go into effect on the date that the arbitration is
concluded, but in no event later than March 3, 1999. If,
as a result of such arbitration, the arbitrator concludes
that the measures are not consistent with Articles 22.3
or 22.4, the measures shall be adjusted to be in compli-
ance with Articles 22.3 and 22.4.
(f) SUSPENSION OF LIQUIDATION.—In applying sub-
section (d), the Trade Representative shall order the sus-
pension of liquidation of all entries of merchandise in-
cluded on the list published under subsection (c) which
are entered, or withdrawn from warehouse for consump-
tion, on or after January 2, 1999, through January 31,
1999, or, in the case of arbitration under subsection (e),
until the date that the arbitration is concluded but in no
event later than March 2, 1999. On the date that the
Trade Representative proclaims the measures included on
the list published under subsection (c), the Trade Rep-
resentative shall also proclaim the measures to apply to
merchandise for which liquidation had been suspended and
shall order terminated the suspension.
(g) CONSULTATION WITH CONGRESS AND DOMESTIC
INDUSTRY.—In determining whether any of the conditions
described in paragraphs (1) through (6) of subsection (d)
exist, the Trade Representative shall consult with the
Committee on Ways and Means of the House of Rep-
resentatives and the Committee on Finance of the Senate,
and with representatives of the domestic industry con-
cerned, and shall provide an opportunity for the presen-
tation of views by other interested persons affected by the
proposed determination concerning the effects of the de-
termination and whether such a determination is appro-
priate.
(h) NOTICE; REPORT
TO CONGRESS.—The Trade
Representative shall promptly publish in the Federal Reg-
ister notice of, and report in writing to the Congress with
respect to, any determination made under paragraphs (1)
through (6) of subsection (d), together with the reasons
therefor.
SEC. 4. ACTIONS IN RESPONSE TO EU BEEF HORMONE BAN.
(a) IN GENERAL.—Notwithstanding the provisions of
section 6, the Trade Representative shall, in accordance
with this section, take action under section 301(c)(1)(A)
and (B) of the Trade Act of 1974, as if a determination
had been made under section 304(a)(1) of that Act that
the practices of the European Union regarding the use
of hormones in livestock production violate, or are incon-
sistent with, or otherwise deny benefits to the United
States under the Uruguay Round Agreements. Any such
action to eliminate such practices shall be devised so as
to affect goods or services of the European Union in an
amount that is equivalent in value to the burden or restric-
tion being imposed by the European Union on United
States commerce.
(b) PRELIMINARY
LIST
OF
ARTICLES
FOR
IN-
CREASED TARIFFS.—By not later than April 1, 1999, the
Trade Representative shall publish, and provide an oppor-
tunity for public comment on, a proposed list of actions
to be taken under subsection (a).
(c) FINAL LIST.—By not later than May 3, 1999,
the Trade Representative, after taking into account com-
ments submitted by the public on the proposed list, shall
publish a final list of actions to be taken under subsection
(a). Prior to publishing the final list, the Trade Represent-
ative shall also 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 with respect to the composition of the final list.
(d) IMPLEMENTATION
OF FINAL ACTIONS.—The
Trade Representative shall endeavor to take all action au-
thorized under Article 22.2 of the Understanding on Rules
and Procedures Governing the Settlement of Disputes,
and the Trade Representative shall proclaim the measures
included on the list published under subsection (c) to go
into effect on June 13, 1999, unless the Trade Represent-
ative determines and certifies to the Congress that—
(1) the Dispute Settlement Body has adopted a
report that—
(A) the rights of the United States under
the Uruguay Round Agreements are not being
denied by the practices of the European Union
regarding the use of hormones in livestock pro-
duction; or
(B) the practices of the European Union
regarding the use of hormones in livestock pro-
duction—
(i) are not a violation of, or inconsist-
ent with, the rights of the United States;
or
(ii) do not deny, nullify, or impair
benefits to the United States under the
Uruguay Round Agreements; or
(2) the European Union is taking satisfactory
measures to grant the rights of the United States
under the Uruguay Round Agreements;
(3) the European Union has—
(A) agreed to eliminate or phase out the
practices referred to in subsection (a); or
(B) agreed to an imminent solution to the
burden or restriction on United States com-
merce that is satisfactory to the Trade Rep-
resentative;
(4) it is impossible for the European Union to
achieve the results described in paragraph (2) or (3),
as appropriate, but the European Union agrees to
provide to the United States compensatory trade
benefits that are satisfactory to the Trade Rep-
resentative;
(5) in extraordinary cases, where the taking of
action under this section would have an adverse im-
pact on the United States economy substantially out
of proportion to the benefits of such action, taking
into account the impact of not taking such action on
the credibility of title III of the Trade Act of 1974
and the findings and provisions of this Act; or
(6) the taking of action under this section
would cause serious harm to the national security of
the United States.
(e) ARBITRATION.—In the event that the European
Union seeks arbitration under Article 22.6 of the Under-
standing on Rules and Procedures Governing the Settle-
ment of Disputes, the Trade Representative shall, notwith-
standing the requirements of subsection (d), proclaim the
measures included on the list published under subsection
(c) to go into effect on the date that the arbitration is
concluded, but in no event later than July 13, 1999. If,
as a result of such arbitration, the arbitrator concludes
that the measures are not consistent with Articles 22.3
or 22.4, the measures shall be adjusted to be in compli-
ance with Articles 22.3 and 22.4.
(f) SUSPENSION OF LIQUIDATION.—In applying sub-
section (d), the Trade Representative shall order the sus-
pension of liquidation of all entries of merchandise in-
cluded on the list published under subsection (c) which
are entered, or withdrawn from warehouse for consump-
tion, on or after May 14, 1999, through June 12, 1999,
or, in the case of arbitration under subsection (e), until
the date that the arbitration is concluded but in no event
later than July 12, 1999. On the date that the Trade Rep-
resentative proclaims the measures included on the list
published under subsection (c), the Trade Representative
shall also proclaim the measures to apply to merchandise
for which liquidation had been suspended and shall order
terminated the suspension.
(g) CONSULTATION WITH CONGRESS AND DOMESTIC
INDUSTRY.—In determining whether any of the conditions
described in paragraphs (1) through (6) of subsection (d)
exist, the Trade Representative shall consult with the
Committee on Ways and Means of the House of Rep-
resentatives and the Committee on Finance of the Senate,
and with representatives of the domestic industry con-
cerned, and shall provide an opportunity for the presen-
tation of views by other interested persons affected by the
proposed determination concerning the effects of the de-
termination and whether such a determination is appro-
priate.
(h) NOTICE; REPORT
TO CONGRESS.—The Trade
Representative shall promptly publish in the Federal Reg-
ister notice of, and report in writing to the Congress with
respect to, any determination made under paragraphs (1)
through (6) of subsection (d), together with the reasons
therefor.
SEC. 5. MODIFICATION AND TERMINATION OF ACTIONS.
(a) IN GENERAL.—The Trade Representative may
modify or terminate any action, subject to the specific di-
rection, if any, of the President with respect to such ac-
tion, that is being taken under section 4 or section 5 if—
(1) any of the conditions described in para-
graphs (1) through (6) of section 4(d) (in the case
of an action under section 4), or any of the condi-
tions described in paragraphs (1) through (6) of sec-
tion 5(d) (in the case of an action under section 5),
exist; or