House of Representatives, and the Committee on
Agriculture, Nutrition, and Forestry, the Committee
on Finance, and the Committee on Foreign Rela-
tions of the Senate.
(5) CONTRACT SANCTITY.—The term ‘‘contract
sanctity’’, with respect to a unilateral economic
sanction, refers to the inapplicability of the sanction
to—
(A) a contract or agreement entered into
before the sanction is imposed, or to a valid ex-
port license or other authorization to export;
and
(B) actions taken to enforce the right to
maintain intellectual property rights, in the for-
eign country against which the sanction is im-
posed, which existed before the imposition of
the sanction.
SEC. 5. GUIDELINES FOR UNILATERAL ECONOMIC SANC-
TIONS LEGISLATION.
Any bill or joint resolution that imposes any unilat-
eral economic sanction, or authorizes the imposition of any
unilateral economic sanction by the executive branch, and
is considered by the House of Representatives or the Sen-
ate, should—
(1) state the foreign policy or national security
objective or objectives of the United States that the
economic sanction is intended to achieve;
(2) provide that the economic sanction termi-
nate 2 years after it is imposed, unless specifically
reauthorized by the Congress;
(3) provide for contract sanctity;
(4) provide authority for the President both to
adjust the timing and scope of the sanction and to
waive the sanction, if the President determines it is
in the national interest to do so;
(5)(A) target the sanction as narrowly as pos-
sible on foreign governments, entities, and officials
that are responsible for the conduct being targeted;
and
(B) seek to minimize any adverse impact on the
humanitarian activities of United States and foreign
nongovernmental organizations in any country
against which the sanction may be imposed; and
(6) provide, to the extent that the Secretary of
Agriculture or the Congressional Budget Office finds
that—
(A) the proposed sanction is likely to re-
strict exports of any agricultural commodity or
is likely to result in retaliation against exports
of any agricultural commodity from the United
States, and
(B) the sanction is proposed to be im-
posed, or is likely to be imposed, on a country
or countries that constituted, in the preceding
calendar year, the market for more than 3 per-
cent of all export sales from the United States
of an agricultural commodity,
that the Secretary of Agriculture expand agricultural
export assistance under United States market devel-
opment, food assistance, or export promotion pro-
grams to offset the likely damage to incomes of pro-
ducers of the affected agricultural commodity or
commodities, to the maximum extent permitted by
the obligations of the United States under the
Agreement on Agriculture referred to in section
101(d)(2) of the Uruguay Round Agreements Act
(19 U.S.C. 3511(d)(2)).
SEC. 6. REQUIREMENTS FOR BILL OR JOINT RESOLUTION.
(a) PUBLIC COMMENT.—Before considering a bill or
joint resolution that imposes any unilateral economic sanc-
tion, or authorizes the imposition of any unilateral eco-
nomic sanction by the executive branch, the committee of
primary jurisdiction shall publish a notice which provides
an opportunity for interested members of the public to
submit comments to the committee on the proposed sanc-
tion.
(b) WHEN REPORTS REQUESTED.—The committee
of primary jurisdiction that orders reported a bill or joint
resolution described in section 5 shall timely request from
the President and the Secretary of Agriculture the reports
identified in subsection (c). Each such report that has
been timely submitted prior to the filing of the committee
report accompanying the bill or joint resolution shall be
included in the committee report. The committee report
shall also contain, if the bill or joint resolution does not
meet any of the guidelines specified in paragraphs (1)
through (6) of section 5, an explanation of why it does
not.
(c) REPORTS.—
(1) REPORT BY THE PRESIDENT.—The Presi-
dent’s report to the Congress under subsection (b)
shall contain—
(A) an assessment of—
(i) the likelihood that the proposed
unilateral economic sanction will achieve
its stated objective within a reasonable pe-
riod of time; and
(ii) the impact of the proposed unilat-
eral economic sanction on—
(I) humanitarian conditions, in-
cluding the impact on conditions in
any specific countries on which the
sanction is proposed to be or may be
imposed;
(II) humanitarian activities of
United States and foreign nongovern-
mental organizations;
(III) relations with United States
allies;
(IV) other United States national
security and foreign policy interests;
and
(V) countries and entities other
than those on which the sanction is
proposed to be or may be imposed;
(B) a description and assessment of—
(i) diplomatic and other steps the
United States has taken to accomplish the
intended objectives of the unilateral sanc-
tion legislation;
(ii) the likelihood of multilateral adop-
tion of comparable measures;
(iii) comparable measures undertaken
by other countries;
(iv) alternative measures to promote
the same objectives, and an assessment of
their potential effectiveness;
(v) any obligations of the United
States under international treaties or trade
agreements with which the proposed sanc-
tion may conflict;
(vi) the likelihood that the proposed
sanction will lead to retaliation against
United States interests, including agricul-
tural interests; and
(vii) whether the achievement of the
objectives of the proposed sanction out-
weighs any likely costs to United States
foreign policy, national security, economic,
and humanitarian interests, including any
potential harm to United States business,
agriculture, and consumers, and any poten-
tial harm to the international reputation of
the United States as a reliable supplier of
products, technology, agricultural commod-
ities, and services.
(2) REPORT
BY
THE
SECRETARY
OF
AGRI-
CULTURE.—The Secretary of Agriculture shall sub-
mit to the appropriate committees a report which
shall contain an assessment of—
(A) the extent to which any country or
countries proposed to be sanctioned or likely to
be sanctioned are markets that accounted for,
in the preceding calendar year, more than 3
percent of all export sales from the United
States of any agricultural commodity;
(B) the likelihood that exports of agricul-
tural commodities from the United States will
be affected by the proposed sanction or by re-
taliation by any country proposed to be sanc-
tioned or likely to be sanctioned, and specific
commodities which are most likely to be af-
fected;
(C) the likely effect on incomes of produc-
ers of the specific commodities identified by the
Secretary;
(D) the extent to which the proposed sanc-
tion would permit foreign suppliers to replace
United States suppliers; and
(E) the likely effect of the proposed sanc-
tion on the reputation of United States farmers
as reliable suppliers of agricultural commodities
in general, and of the specific commodities iden-
tified by the Secretary.
(3) FEDERAL PRIVATE SECTOR MANDATE.—
(A) IN GENERAL.—Any bill or joint resolu-
tion that imposes any unilateral economic sanc-
tion described in section 5 shall be considered
to include a Federal private sector mandate for
purposes of part B of title IV of the Congres-
sional Budget Act of 1974.
(B) REPORT
BY
THE
CONGRESSIONAL
BUDGET OFFICE.—The report by the Congres-
sional Budget Office pursuant to subparagraph
(A) shall include an assessment of the likely
short-term and long-term costs of the proposed
sanction to the United States economy, includ-
ing the potential impact on United States trade
performance, employment, and growth, the
international reputation of the United States as
a reliable supplier of products, agricultural
commodities, technology, and services, and the
economic well-being and international competi-
tive position of United States industries, firms,
workers, farmers, and communities.
SEC. 7. REQUIREMENTS FOR EXECUTIVE ACTION.
(a) IN GENERAL.—The President may implement a
unilateral economic sanction under any provision of law
not less than 60 days after announcing his intention to
do so.
(b) CONSULTATION.—The President shall consult
with the appropriate committees regarding the proposed
unilateral economic sanction, including consultations re-
garding efforts to achieve or increase multilateral coopera-
tion on the issues or problems prompting the proposed
sanction.
(c) PUBLIC HEARINGS; RECORD.—The President
shall publish a notice in the Federal Register of the oppor-
tunity for interested persons to submit comments on the
proposed unilateral economic sanction.
(d) GUIDELINES FOR EXECUTIVE BRANCH SANC-
TIONS.—Any unilateral economic sanction imposed by the
President—
(1) shall—
(A) include a clear finding that the sanc-
tion is likely to achieve a specific United States
foreign policy or national security objective
within a reasonable period of time, which shall
be specified, and that the achievement of the
objectives of the sanction outweighs any costs
to United States national interests;
(B) provide for contract sanctity;
(C) terminate not later than 2 years after
the sanction is imposed, unless specifically ex-
tended by the President in accordance with the
procedures of this section;
(D)(i) be targeted as narrowly as possible
on foreign governments, entities, and officials
that are responsible for the conduct being tar-
geted; and
(ii) seek to minimize any adverse impact
on the humanitarian activities of United States
and foreign nongovernmental organizations in a
country against which the sanction may be im-
posed; and
(2) should provide, to the extent that the Sec-
retary of Agriculture finds that—
(A) a unilateral economic sanction is likely
to restrict exports of any agricultural commod-
ity from the United States or is likely to risk
retaliation against exports of any agricultural
commodity from the United States, and
(B) the sanction is proposed to be im-
posed, or is likely to be imposed, on a country
or countries that constituted, in the preceding
calendar year, the market for more than 3 per-
cent of all export sales from the United States
of an agricultural commodity,
that the Secretary of Agriculture expand agricultural
export assistance under United States market devel-
opment, food assistance, or export promotion pro-
grams to offset the likely damage to incomes of pro-
ducers of the affected agricultural commodity or
commodities, to the maximum extent permitted by
law and by the obligations of the United States
under the Agreement on Agriculture referred to in
section 101(d)(2) of the Uruguay Round Agree-
ments Act (19 U.S.C. 3511(d)(2)).
(e) REPORT BY THE PRESIDENT.—Prior to imposing
any unilateral economic sanction, the President shall pro-
vide a report to the appropriate committees on the pro-
posed sanction. The report shall include the report of the
International Trade Commission under subsection (g) (if
timely submitted prior to the filing of the report). The
President’s report shall contain the following:
(1) An explanation of the foreign policy or na-
tional security objective or objectives intended to be
achieved through the proposed sanction.
(2) An assessment of—