To modify the negotiating objectives of the United States for future trade agreements, and for other purposes.

SECTION 1. TRADE NEGOTIATING OBJECTIVES.

    Section 1101 of the Omnibus Trade and Competitiveness Act of 1988 
(19 U.S.C. 2901) is amended as follows:
            (1) Overall trade negotiating objectives.--Subsection (a) 
        is amended--
                    (A) in paragraph (2) by striking ``and'' after the 
                semicolon;
                    (B) in paragraph (3) by striking the period and 
                inserting ``; and''; and
                    (C) by adding after paragraph (3) the following:
            ``(4) increased compatibility of trade agreements with 
        environmental protection, conservation, and sustainable 
        development.''.
            (2) Principal trade negotiating objectives.--Subsection (b) 
        is amended as follows:
                    (A) Dispute settlement.--Paragraph (1)(B) is 
                amended to read as follows:
                    ``(B) to ensure that such mechanisms within trade 
                agreements to which the United States is a party 
                provide for more effective and expeditious resolution 
                of disputes, improve transparency and public 
                participation, and enable better enforcement of United 
                States rights, including those relating to environment 
                and conservation.''.
                    (B) Transparency.--Paragraph (3) is amended by 
                inserting ``, including those related to environment 
                and conservation,'' after ``trade matters''.
                    (C) Developing countries.--Paragraph (4) is 
                amended--
                            (i) in subparagraph (A) by striking ``and'' 
                        after the semicolon;
                            (ii) in subparagraph (B) by striking the 
                        period and inserting ``; and''; and
                            (iii) by adding after subparagraph (B) the 
                        following:
                    ``(C) to take into account the particular needs of 
                developing countries in trade matters relating to 
                environment and conservation.''.
                    (D) Unfair trade practices.--Paragraph (8)(A) is 
                amended--
                            (i) by striking ``the GATT and nontariff 
                        measure'' and inserting ``trade''; and
                            (ii) by inserting ``and other practices 
                        potentially harmful to the environment'' after 
                        ``resource input subsidies''.
                    (E) Intellectual property.--Paragraph (10) is 
                amended--
                            (i) in subparagraph (C) by striking ``and'' 
                        after the semicolon;
                            (ii) in subparagraph (D) by striking the 
                        period and inserting ``; and''; and
                            (iii) by adding at the end the following:
                    ``(E) to promote compatibility of established 
                standards of the World Trade Organization relating to 
                intellectual property with existing international 
                biological diversity conventions.''.
                    (F) Foreign investment.--Paragraph (11) is 
                amended--
                            (i) by striking ``direct'' in the paragraph 
                        heading and each place it appears in the text; 
                        and
                            (ii) in subparagraph (A)(ii)--
                                    (I) by striking ``and'' at the end 
                                of subclause (I);
                                    (II) by striking the period at the 
                                end of subclause (II) and inserting ``, 
                                and''; and
                                    (III) by adding at the end the 
                                following:
                                    ``(III) will promote 
                                environmentally sensitive foreign 
                                investment and discourage countries 
                                from attracting or maintaining foreign 
                                investment by relaxing domestic health, 
                                safety, or environmental measures.''.
                    (G) Additional objectives.--Subsection (b) is 
                amended by adding at the end the following:
            ``(17) Environment and conservation.--The principal 
        negotiating objectives of the United States regarding 
        environment and conservation issues related to trade and 
        foreign investment are to--
                    ``(A) promote compatibility between trade 
                agreements and sustainable development, and foster the 
                continual protection and improvement of the 
                environment, while recognizing national sovereignty;
                    ``(B) increase cooperation on trade-related 
                environmental policies to better conserve, protect, and 
                enhance the environment;
                    ``(C) avoid trade distortions or barriers that 
                undermine environmental protection and conservation or 
                that constitute disguised protectionism;
                    ``(D) promote transparency and public 
                participation, and increase consumer information in the 
                development of environmental laws, regulations, and 
                policies; and
                    ``(E) promote compatibility of trade agreements 
                with international environmental agreements to protect 
                shared global resources.
            ``(18) Wood and wood products.--The principal negotiating 
        objectives of the United States regarding trade in wood and 
        wood products are to--
                    ``(A) promote sustainable forestry practices; and
                    ``(B) increase market access for value-added wood 
                products and wood products that are produced from 
                timber that is sustainably harvested.''.

SEC. 2. CITIZEN PARTICIPATION.

    Section 135 of the Trade Act of 1974 (19 U.S.C. 2155) is amended as 
follows:
            (1) Advisory committee for trade policy and negotiations.--
        Subsection (b)(1) is amended by inserting ``nongovernmental 
        environmental and conservation organizations,'' after 
        ``governments,''.
            (2) General policy, sectoral, or functional committees.--
        Subsection (c) is amended--
                    (A) in paragraph (1)--
                            (i) by inserting ``environment and 
                        conservation,'' after ``general policy advisory 
                        committees for'';
                            (ii) by inserting ``environment and 
                        conservation,'' after ``representative of 
                        all'';
                            (iii) by striking ``and the Secretaries'' 
                        and all that follows through ``or other 
                        executive'' and inserting ``, the Secretaries 
                        of the Interior, Commerce, Defense, Labor, 
                        Agriculture, and the Treasury, and the 
                        Administrators of the Environmental Protection 
                        Agency and the National Oceanic and Atmospheric 
                        Administration, or the heads of other 
                        executive''; and
                            (iv) by inserting ``and Administrators'' 
                        after ``such Secretaries'';
                    (B) in paragraph (2)--
                            (i) by inserting ``environment and 
                        conservation,'' after ``representative of 
                        all'';
                            (ii) by striking ``and the Secretaries'' 
                        and all that follows through ``or other 
                        executive'' and inserting ``, the Secretaries 
                        of the Interior, Commerce, Labor, Agriculture, 
                        and the Treasury, and the Administrators of the 
                        Environmental Protection Agency and the 
                        National Oceanic and Atmospheric 
                        Administration, or the heads of other 
                        executive''; and
                            (iii) in subparagraph (B)--
                                    (I) by redesignating clauses (iii) 
                                through (v) as clauses (iv) through 
                                (vi), respectively; and
                                    (II) by inserting after clause (ii) 
                                the following:
                                    ``(iii) environmental impacts of 
                                liberalized trade and investment,''.
            (3) Advice and information.--Subsection (d) is amended by 
        striking ``and the Secretaries'' and all that follows through 
        ``or other executive'' and inserting ``, the Secretaries of the 
        Interior, Agriculture, Commerce, Labor, and Defense, and the 
        Administrators of the Environmental Protection Agency and the 
        National Oceanic and Atmospheric Administration, or the heads 
        of other executive''.
            (4) Meetings at close of negotiations.--Subsection (e) is 
        amended by adding at the end the following:
            ``(4) The report of the appropriate sectoral or functional 
        committee or committees under paragraph (1) shall include an 
        advisory opinion as to the significant environmental effects of 
        trade conducted within the sector or within the functional 
        area.''.
            (5) Trade secrets and confidential information.--Subsection 
        (g)(3) is amended by striking ``and the Secretaries'' and all 
        that follows through ``or other executive'' and inserting ``, 
        the Secretaries of the Interior, Commerce, Labor, Defense, and 
        Agriculture, and the Administrators of the Environmental 
        Protection Agency and the National Oceanic and Atmospheric 
        Administration, or the heads of other executive''.
            (6) Advisory committee support.--Subsection (h) is amended 
        by striking ``and the Secretaries'' and all that follows 
        through ``or other executive'' and inserting ``, the 
        Secretaries of the Interior, Commerce, Labor, Defense, 
        Agriculture, and the Treasury, and the Administrators of the 
        Environmental Protection Agency and the National Oceanic and 
        Atmospheric Administration, or the heads of other executive''.
            (7) Consultation with advisory committees.--Subsection (i) 
        is amended--
                    (A) by inserting ``the Interior,'' after 
                Secretaries of''; and
                    (B) by striking ``the Treasury, or other 
                executive'' and inserting ``and the Treasury and the 
                Administrator of the Environmental Protection Agency 
                and the National Oceanic and Atmospheric 
                Administration, or the heads of other executive''.
            (8) Private organizations or groups.--Subsection (j) is 
        amended by inserting ``environment and conservation,'' after 
        ``government''.

SEC. 3. ADDITIONAL NEGOTIATING OBJECTIVES.

    Section 1101 of the Omnibus Trade and Competitiveness Act of 1988 
is amended by adding at the end the following:
    ``(c) Specific Objectives for Particular Forums.--
            ``(1) WTO.--The principal negotiating objectives of the 
        United States regarding environment and conservation in the 
        World Trade Organization and the Committee on Trade and 
        Environment of the World Trade Organization are--
                    ``(A) to develop guidelines for the use of national 
                trade and investment measures designed to protect the 
                environment, including those related to the product 
                life cycle;
                    ``(B) to increase transparency, openness, and 
                public participation in dispute settlement procedures;
                    ``(C) to improve the rules and agreements of the 
                World Trade Organization regarding measures to protect 
                domestic environmental standards and conservation 
                measures;
                    ``(D) to promote greater compatibility of the rules 
                and agreements of the World Trade Organization with 
                international environmental agreements that rely upon 
                trade sanctions for enforcement;
                    ``(E) to consider incentives, including improved 
                market access, that might promote resolution of 
                environmental issues relating to international trade;
                    ``(F) to consider intellectual property rules that 
                may promote greater protection of biodiversity;
                    ``(G) to develop guidelines with respect to trade 
                in domestically prohibited or severely restricted 
                goods;
                    ``(H) to achieve progress toward eliminating 
                agricultural subsidies that distort trade and harm the 
                environment; and
                    ``(I) to create an open process to consider 
                continually new trade-related initiatives to promote 
                sustainable development, internalize environmental 
                costs, and enhance environmental protection and the 
                effectiveness of conservation measures.
            ``(2) Bilateral trade or nafta accession.--The principal 
        negotiating objectives of the United States with respect to 
        bilateral trade accession to the North American Free Trade 
        Agreement are--
                    ``(A) to establish, where relevant for the country 
                seeking accession, minimum environmental safeguards 
                that are not less than those contained in the North 
                American Free Trade Agreement and the North American 
                Agreement on Environmental Cooperation; and
                    ``(B) to implement such additional measures as may 
                be needed to address country-specific trade and 
                environment issues.
            ``(3) Asia-pacific economic cooperation forum.--The 
        principal negotiating objectives of the United States in the 
        Asia-Pacific Economic Cooperation forum (APEC) are--
                    ``(A) to develop a program relating to environment 
                and conservation measures of relevance to member 
                countries of APEC; and
                    ``(B) to establish a permanent institutional 
                mechanism or secretariat and a timetable for 
                implementing the program developed under subparagraph 
                (A).''.

Summary: Amends the Omnibus Trade and Competitiveness Act of 1988 to add as an overall U.S. trade negotiating objective that the United States obtain increased compatibility of trade agreements with environmental protection, conservation, and sustainable development. 
(Sec. 1) Declares principal U.S. trade negotiating objectives includes ensuring that dispute settlement mechanisms within trade agreements provide for more effective and expeditious resolution of disputes, improve transparency and public participation, and enable better enforcement of U.S. rights, including those relating to environment and conservation; (2) obtaining broader application of the principle of transparency through the observance of open and equitable procedures by GATT Contracting Parties to the GATT in trade matters related to environment and conservation; (3) taking into account the particular needs of developing countries in trade matters relating to environment and conservation; (4) improving the provisions of trade agreements to discipline unfair trade practices having adverse trade effects, including practices potentially harmful to the environment;(5) promoting compatibility of established standards of the World Trade Organization (WTO) relating to intellectual property with existing international biological diversity conventions; and (6) developing internationally agreed rules, including dispute settlement procedures, which will promote environmentally sensitive foreign investment and discourage countries from attracting or maintaining foreign investment by relaxing domestic health, safety, or environmental measures. 
Declares that the principal U.S. negotiating objectives:  (1) regarding environment and conservation issues related to trade and foreign investment are, among other things, to promote compatibility between trade agreements and the protection of the environment and global resources; and (2) regarding trade in wood and wood products are to promote sustainable forestry practices, and to increase market access for value-added wood products and wood products that are produced from timber that is sustainably harvested. 
(Sec. 2) Amends the Trade Act of 1974 to revise the composition of the Advisory Committee for Trade Policy and Negotiations to include nongovernmental environmental and conservation organizations. Authorizes the President to establish individual general policy and sectoral or functional advisory committees for environment and conservation.  Requires a specified report of the appropriate sectoral or functional committees concerning proposed trade agreements to include an advisory opinion as to the significant environmental effects of trade conducted within the sector or functional area. 
(Sec. 3) Amends the Omnibus Trade and Competitiveness Act of 1988 to declare that the principal U.S. negotiating objectives regarding environment and conservation in the WTO and the Committee on Trade and Environment of the WTO are, among other things, to promote greater compatibility of the rules and agreements of the WTO with international agreements that rely upon trade sanctions for enforcement. 
Declares that the principal U.S. negotiating objectives with respect to bilateral trade accession to the North American Free Trade Agreement (NAFTA) are to establish for the country seeking accession minimum environmental safeguards that are not less than those contained in NAFTA and the North American Agreement on Environmental Cooperation. 
Declares that the principal U.S. negotiating objectives with respect to the Asia-pacific Economic Cooperation form (APEC) are to develop a program relating to environment and conservation measures of relevance to member countries of APEC.