I
104TH CONGRESS
1ST SESSION
H. R. 1434
To establish a commission to review the dispute settlement reports of the
World Trade Organization, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
APRIL 6, 1995
Mr. HOUGHTON (for himself and Mr. LEVIN) introduced the following bill;
which was referred to the Committee on Ways and Means, and in addi-
tion to the Committee on Rules, for a period to be subsequently deter-
mined by the Speaker, in each case for consideration of such provisions
as fall within the jurisdiction of the committee concerned
A BILL
To establish a commission to review the dispute settlement
reports of the World Trade Organization, and for other
purposes.
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 ‘‘WTO Dispute Settle-
ment Review Commission Act’’.
SEC. 2. CONGRESSIONAL FINDINGS AND PURPOSE.
(a) FINDINGS.—The Congress finds the following:
(1) The United States joined the World Trade
Organization as a founding member with the goal of
creating an improved global trading system.
(2) The American people must receive assur-
ances that United States sovereignty will be pro-
tected, and United States interests will be advanced,
within the global trading system which the WTO will
oversee.
(3) The survival of the new WTO requires the
continuation of both trade liberalization and the
ability to respond effectively to unfair or otherwise
harmful trade practices.
(4) United States support for the WTO de-
pends upon obtaining mutual trade benefits through
the openness of foreign markets and the mainte-
nance of effective United States and WTO remedies
against unfair or otherwise harmful trade practices.
(5) Congress passed the Uruguay Round Agree-
ments Act based upon its understanding that effec-
tive trade remedies would not be eroded. These rem-
edies are essential to continue the process of opening
foreign markets to imports of goods and services and
to prevent harm to American industry and agri-
culture, particularly through foreign dumping and
subsidization.
of Representatives, the Majority Leader and Minor-
ity Leader of the Senate, the chairman and ranking
member of the Committee on Ways and Means of
the House of Representatives, and the chairman and
ranking member of the Committee on Finance of the
Senate.
(2) DATE.—The appointments of the members
of the Commission shall be made no later than 60
days after the date of the enactment of this Act.
(c) PERIOD OF APPOINTMENT; VACANCIES.—
(1) IN GENERAL.—Members of the Commission
first appointed shall each be appointed for a term of
5 years. After the initial 5-year term, 3 members of
the Commission shall be appointed for terms of 3
years and the remaining 2 members shall be ap-
pointed for terms of 2 years.
(2) VACANCIES.—
(A) IN
GENERAL.—Any vacancy on the
Commission shall not affect its powers, but
shall be filled in the same manner as the origi-
nal appointment and shall be subject to the
same conditions as the original appointment.
(B) UNEXPIRED
TERM.—An individual
chosen to fill a vacancy shall be appointed for
the unexpired term of the member replaced.
(d) INITIAL MEETING.—No later than 30 days after
the date on which all members of the Commission have
been appointed, the Commission shall hold its first meet-
ing.
(e) MEETINGS.—The Commission shall meet at the
call of the Chairman.
(f) QUORUM.—A majority of the members of the
Commission shall constitute a quorum, but a lesser num-
ber of members may hold hearings.
(g) CHAIRMAN AND VICE CHAIRMAN.—The Commis-
sion shall select a Chairman and Vice Chairman from
among its members.
SEC. 4. DUTIES OF THE COMMISSION.
(a) REVIEW OF WTO DISPUTE SETTLEMENT RE-
PORTS.—
(1) IN
GENERAL.—The Commission shall re-
view—
(A) all reports of dispute settlement panels
or the Appellate Body of the World Trade Or-
ganization in proceedings initiated by other par-
ties to the WTO which are adverse to the
United States and which are adopted by the
Dispute Settlement Body, and
(B) upon request of the United States
Trade Representative, any other report of a dis-
pute settlement panel or the Appellate Body
which is adopted by the Dispute Settlement
Body.
(2) SCOPE OF REVIEW.—In the case of any re-
port described in paragraph (1), the Commission
shall review the report and determine whether—
(A) the panel or the Appellate Body, as the
case may be, exceeded its authority or its terms
of reference;
(B) the panel or the Appellate Body, as
the case may be, added to the obligations of or
diminished the rights of the United States
under the Uruguay Round Agreement which is
the subject of the report;
(C) the panel or the Appellate Body, as the
case may be, acted arbitrarily or capriciously,
engaged in misconduct, or demonstrably de-
parted from the procedures specified for panels
and the Appellate Body in the applicable Uru-
guay Round Agreement; and
(D) the report of the panel or the Appel-
late Body, as the case may be, deviated from
the applicable standard of review, including in
antidumping, countervailing duty, and other un-
fair trade remedy cases, including the standard
of review set forth in Article 17.6 of the Agree-
ment on Implementation of Article VI of the
General Agreement on Tariffs and Trade 1994.
(3) AFFIRMATIVE
DETERMINATION.—If the
Commission makes an affirmative determination
with respect to the action of a panel or the Appellate
Body under subparagraph (A), (B), (C), or (D) of
paragraph (2), the Commission shall determine
whether the action of the panel or Appellate Body
materially affected the outcome of the report of the
panel or Appellate Body.
(b) DETERMINATION; REPORT.—
(1) DETERMINATION.—No later than 120 days
after the date on which a report of a panel or the
Appellate Body described in subsection (a)(1) is
adopted by the Dispute Settlement Body, the Com-
mission shall make a written determination with re-
spect to matters described in subsections (a)(2) and
(a)(3).
(2) REPORTS.—The Commission shall report
the determinations described in paragraph (1) to the
Committee on Ways and Means of the House of
Representatives and the Committee on Finance of
the Senate.
SEC. 5. POWERS OF THE COMMISSION.
(a) HEARINGS.—The Commission may hold such
hearings, sit and act at such times and places, take such
testimony, and receive such evidence as the Commission
considers advisable to carry out the purposes of this Act.
(b) INFORMATION FROM INTERESTED PARTIES AND
FEDERAL AGENCIES.—
(1) NOTICE OF PANEL OR APPELLATE BODY
REPORT.—The United States Trade Representative
shall advise the Commission no later than 5 days
after the date the Dispute Settlement Body adopts
the report of a panel or the Appellate Body that is
adverse to the United States and shall immediately
publish notice of such advice in the Federal Reg-
ister, along with notice of an opportunity for inter-
ested parties to submit comments to the Commis-
sion.
(2) SUBMISSIONS AND REQUESTS FOR INFOR-
MATION.—Any interested party may submit com-
ments to the Commission regarding the panel or Ap-
pellate Body report. The Commission may also se-
cure directly from any Federal department or agency
such information as the Commission considers nec-
essary to carry out the provisions of this Act. Upon
request of the Chairman of the Commission, the