Title: Jobs and Trade Competitiveness Act
Policy area: Foreign Trade and International Finance

Summary:
Jobs and Trade Competitiveness Act
This bill establishes: (1) an Office of the Congressional Trade Enforcer; (2) an Office of Market Access Assistance; (3) a Trade Enforcement Division within the Office of the U.S. Trade Representative (USTR), headed by a Deputy U.S. Trade Representative for Trade Enforcement; (4) the Office of Trade Assistance for Small Business; (5) the Chief Manufacturing Negotiator; and (6) the Congressional Advisory Commission on WTO Dispute Settlement to provide advice to Congress on the operation of the dispute settlement system of the World Trade Organization.
The bill amends the Tariff Act of 1930 regarding: (1) the imposition of countervailing duties to address subsidies relating to fundamentally undervalued currencies; and (2) the establishment of procedures for the protection of business proprietary information from public disclosure, with respect to the investigation of claims of evasion of antidumping and countervailing duty orders.
The bill amends the Internal Revenue Code to provide a tax credit for insourcing expenses and to deny a deduction for outsourcing expenses.
The USTR shall identify those foreign country trade practices that cause negative environmental impacts on human, animal, or plant life or health, or exhaustible natural resources in the United States, the foreign country, a third country, or internationally, and periodically report on such practices.
The Government Accountability Office shall report assessing progress in: (1) achieving compliance by other countries with commitments made under specified international fora, and (2) ensuring that goods made with child labor do not enter the customs territory of the United States.

[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2756 Introduced in House (IH)]

<DOC>






115th CONGRESS
  1st Session
                                H. R. 2756

To amend the Trade Act of 1974 to strengthen trade enforcement, and for 
                            other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 26, 2017

  Mr. Pascrell (for himself, Mr. Levin, Mr. Higgins of New York, Ms. 
  Sewell of Alabama, Ms. DelBene, Ms. Judy Chu of California, and Ms. 
   Sanchez) introduced the following bill; which was referred to the 
Committee on Ways and Means, and in addition to the Committee on Rules, 
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 amend the Trade Act of 1974 to strengthen trade enforcement, and for 
                            other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Jobs and Trade 
Competitiveness Act''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title and table of contents.
          TITLE I--OFFICE OF THE CONGRESSIONAL TRADE ENFORCER

Sec. 101. Establishment.
Sec. 102. Congressional Trade Enforcer.
Sec. 103. Personnel.
Sec. 104. Functions.
Sec. 105. Office of Market Access Assistance.
Sec. 106. Relationship to executive branch.
  TITLE II--TRADE ENFORCEMENT DIVISION AND DEPUTY UNITED STATES TRADE 
                  REPRESENTATIVE FOR TRADE ENFORCEMENT

Sec. 201. Establishment of Trade Enforcement Division and Deputy United 
                            States Trade Representative for Trade 
                            Enforcement.
Sec. 202. Establishment of Chief Manufacturing Negotiator.
 TITLE III--CONGRESSIONAL ADVISORY COMMISSION ON WTO DISPUTE SETTLEMENT

Sec. 301. Congressional findings and purpose.
Sec. 302. Establishment of Commission.
Sec. 303. Duties of the Commission.
Sec. 304. Powers of the Commission.
Sec. 305. Participation in WTO panel proceedings.
Sec. 306. Definitions.
  TITLE IV--IMPOSITION OF COUNTERVAILING DUTIES TO ADDRESS SUBSIDIES 
            RELATING TO FUNDAMENTALLY UNDERVALUED CURRENCIES

Sec. 401. Clarification regarding definition of countervailable 
                            subsidy.
Sec. 402. Report on implementation of title.
Sec. 403. Application to goods from Canada and Mexico.
TITLE V--PROCEDURES FOR INVESTIGATING CLAIMS OF EVASION OF ANTIDUMPING 
                     AND COUNTERVAILING DUTY ORDERS

Sec. 501. Protection of business proprietary information.
Sec. 502. Application to Canada and Mexico.
   TITLE VI--MATTERS TO ENCOURAGE DOMESTIC INSOURCING AND DISCOURAGE 
                          FOREIGN OUTSOURCING

Sec. 601. Credit for insourcing expenses.
Sec. 602. Denial of deduction for outsourcing expenses.
        TITLE VII--MATTERS RELATING TO ENVIRONMENTAL PROTECTIONS

Sec. 701. Environmental protection in trade relations.
Sec. 702. Identification of foreign country trade practices that 
                            negatively affect the environment.
                       TITLE VIII--OTHER MATTERS

Sec. 801. Modification of availability of amounts from Trade 
                            Enforcement Trust Fund.
Sec. 802. Government Accountability Office report on commitments under 
                            certain international fora.
Sec. 803. Government Accountability Office report on enforcement of 
                            child labor prohibition.
Sec. 804. Congressional advisory groups on enforcement.

          TITLE I--OFFICE OF THE CONGRESSIONAL TRADE ENFORCER

SEC. 101. ESTABLISHMENT.

    There is established in the legislative branch an Office of the 
Congressional Trade Enforcer (in this title referred to as the 
``Office'').

SEC. 102. CONGRESSIONAL TRADE ENFORCER.

    (a) Appointment.--The head of the Office shall be the Congressional 
Trade Enforcer, who shall be appointed by the Speaker of the House of 
Representatives, the minority leader of the House of Representatives, 
the majority leader of the Senate, and the minority leader of the 
Senate after considering recommendations received from the Committee on 
Ways and Means of the House of Representatives and the Committee on 
Finance of the Senate, without regard to political affiliation and 
solely on the basis of fitness to perform the functions described in 
section 104.
    (b) Term.--The term of office of the Congressional Trade Enforcer 
shall be 5 years. An individual serving as Congressional Trade Enforcer 
at the expiration of a term may continue to serve until a successor is 
appointed. The Congressional Trade Enforcer may be removed by either 
the House of Representatives or the Senate by resolution.
    (c) Compensation.--The Congressional Trade Enforcer shall receive 
compensation at an annual rate of pay that is equal to the lower of--
            (1) the highest annual rate of compensation of any officer 
        of the Senate; or
            (2) the highest annual rate of compensation of any officer 
        of the House of Representatives.

SEC. 103. PERSONNEL.

    (a) In General.--The Congressional Trade Enforcer shall appoint and 
fix the compensation of such personnel as may be necessary to carry out 
the functions described in section 104. All personnel of the Office 
shall be appointed without regard to political affiliation and solely 
on the basis of their fitness to perform their duties. The 
Congressional Trade Enforcer may prescribe the duties and 
responsibilities of the personnel of the Office, and delegate to them 
authority to perform any of the duties, powers, and functions imposed 
on the Office.
    (b) Coverage Under Congressional Accountability Act of 1995.--
            (1) Treatment of employees as covered employees.--Section 
        101(3) of the Congressional Accountability Act of 1995 (2 
        U.S.C. 1301(3)) is amended--
                    (A) by striking ``or'' at the end of subparagraph 
                (H);
                    (B) by striking the period at the end of 
                subparagraph (I) and inserting ``; or''; and
                    (C) by adding at the end the following new 
                subparagraph:
                    ``(J) the Office of the Congressional Trade 
                Enforcer.''.
            (2) Treatment of office as employing office.--Subparagraph 
        (D) of section 101(9) of such Act (2 U.S.C. 1301(9)) is amended 
        by striking ``and the Office of Technology Assessment'' and 
        inserting ``the Office of Technology Assessment, and the Office 
        of the Congressional Trade Enforcer''.

SEC. 104. FUNCTIONS.

    (a) Principle Function.--The principle function of the 
Congressional Trade Enforcer shall be to ensure compliance by trading 
partners of the United States with trade agreements to which the United 
States is a party.
    (b) Other Functions; Actions by USTR.--
            (1) In general.--The Congressional Trade Enforcer shall 
        have the authority to investigate foreign trade practices that 
        are barriers to United States exports and issue indictments in 
        cases where such practices violate any of the Uruguay Round 
        Agreements or any bilateral or regional trade agreement to 
        which the United States is a party.
            (2) Submission of indictments.--The Congressional Trade 
        Enforcer shall submit indictments referred to in paragraph (1) 
        to the Committee on Ways and Means of the House of 
        Representatives, the Committee on Finance of the Senate, and 
        the United States Trade Representative.
            (3) Action pursuant to indictment.--Within 30 days after 
        receiving an indictment under paragraph (2), the Trade 
        Representative, acting through the Deputy United States Trade 
        Representative for Trade Enforcement should, in accordance with 
        subsection (c)(1) of section 142 of the Trade Act of 1974, as 
        added by section 201 of this Act, commence dispute resolution 
        procedures in the appropriate forum against the country or 
        countries that are the subject of the indictment unless--
                    (A) prior to the date of filing, the foreign 
                country or countries involved enters into an agreement 
                with the United States to eliminate the practice that 
                is inconsistent with its international obligations; or
                    (B) in extraordinary cases, the filing of the case 
                would cause serious harm to the national security of 
                the United States.
            (4) Report.--If the Trade Representative does not commence 
        dispute resolution procedures under paragraph (3) pursuant to 
        an indictment under paragraph (3), the Trade Representative 
        shall, not later than 30 days after receiving the indictment, 
        submit to the Committee on Ways and Means of the House of 
        Representatives and the Committee on Finance of the Senate a 
        report containing the reasons therefor and shall publish notice 
        of the decision, together with a summary of such reasons, in 
        the Federal Register.
    (c) Action Pursuant to Joint Resolution.--
            (1) In general.--If the Trade Representative does not 
        commence dispute resolution procedures under subsection (b)(3) 
        pursuant to an indictment under subsection (b)(2), then the 
        Trade Representative shall commence dispute resolution 
        procedures in the appropriate forum pursuant to the indictment 
        upon the enactment pursuant to the requirements of paragraph 
        (2) of a joint resolution described in paragraph (3).
            (2) Requirements.--(A) The requirements of this paragraph 
        are met if the joint resolution is enacted under paragraph (3) 
        and--
                    (i) the Congress adopts and transmits the joint 
                resolution to the President before the end of the 90-
                day period (excluding any day described in section 
                154(b) of the Trade Act of 1974), beginning on the date 
                on which the Congressional Trade Enforcer submits the 
                indictment under subsection (b)(2); and
                    (ii) if the President vetoes the joint resolution, 
                each House of Congress votes to override that veto on 
                or before the later of the last day of the 90-day 
                period referred to in clause (i) or the last day of the 
                15-day period (excluding any day described in section 
                154(b) of the Trade Act of 1974) beginning on the date 
                on which the Congress receives the veto message from 
                the President.
            (B) A joint resolution to which this subsection applies may 
        be introduced at any time on or after the end of the 30-day 
        period described in subsection (b)(3), and before the end of 
        the 90-day period referred to in subparagraph (A).
            (3) Joint resolutions.--
                    (A) Joint resolutions.--For purposes of this 
                subsection, the term ``joint resolution'' means only a 
                joint resolution of the 2 Houses of Congress, the 
                matter after the resolving clause of which is as 
                follows: ``That the United States Trade Representative 
                shall commence dispute resolution procedures against 
                _______ in ______ pursuant to the indictment submitted 
                under section 204(b)(2) of the Trade Enforcement Act of 
                2017 on ______.'', with the first blank space being 
                filled with the country or countries that are the 
                subject of the indictment, the second blank space being 
                filled with the appropriate forum, and the third blank 
                space being filled with the appropriate date.
                    (B) Procedures.--(i) Joint resolutions may be 
                introduced in either House of the Congress by any 
                member of such House.
                    (ii) Subject to the provisions of this paragraph, 
                the provisions of subsections (b), (d), (e), and (f) of 
                section 152 of the Trade Act of 1974 (19 U.S.C. 2192 
                (b), (d), (e), and (f)) apply to joint resolutions to 
                the same extent as such provisions apply to resolutions 
                under that section.
                    (iii) If the committee of either House to which a 
                joint resolution has been referred has not reported it 
                by the close of the 45th day after its introduction 
                (excluding any day described in section 154(b) of the 
                Trade Act of 1974), such committee shall be 
                automatically discharged from further consideration of 
                the joint resolution and it shall be placed on the 
                appropriate calendar.
                    (iv) It is not in order for--
                            (I) the Senate to consider any joint 
                        resolution unless it has been reported by the 
                        Committee on Finance or the committee has been 
                        discharged under clause (iii); or
                            (II) the House of Representatives to 
                        consider any joint resolution unless it has 
                        been reported by the Committee on Ways and 
                        Means or the committee has been discharged 
                        under clause (iii).
                    (v) A motion in the House of Representatives to 
                proceed to the consideration of a joint resolution may 
                only be made on the second legislative day after the 
                calendar day on which the Member making the motion 
                announces to the House his or her intention to do so.
                    (C) Consideration of second resolution not in 
                order.--It shall not be in order in either the House of 
                Representatives or the Senate to consider a joint 
                resolution (other than a joint resolution received from 
                the other House), if that House has previously adopted 
                a joint resolution under this subsection.
                    (D) Rules of house of representatives and senate.--
                This subsection is enacted by the Congress--
                            (i) as an exercise of the rulemaking power 
                        of the House of Representatives and the Senate, 
                        respectively, and as such is deemed a part of 
                        the rules of each House, respectively, and such 
                        procedures supersede other rules only to the 
                        extent that they are inconsistent with such 
                        other rules; and
                            (ii) with the full recognition of the 
                        constitutional right of either House to change 
                        the rules (so far as relating to the procedures 
                        of that House) at any time, in the same manner, 
                        and to the same extent as any other rule of 
                        that House.
    (d) Definitions.--In this section:
            (1) Indictment.--The term ``indictment'' means a formal 
        written analysis setting forth the legal explanation of the 
        manner in which a foreign trade practice of a country or 
        countries violates any of the Uruguay Round Agreements or any 
        bilateral or regional trade agreement to which the United 
        States is a party.
            (2) Uruguay round agreements.--The term ``Uruguay Round 
        Agreements'' means any of the agreements approved by the 
        Congress under section 101(a)(1) of the Uruguay Round 
        Agreements Act (19 U.S.C. 3511(a)(1)).

SEC. 105. OFFICE OF MARKET ACCESS ASSISTANCE.

    (a) Establishment.--There is established in the Office of the 
Congressional Trade Enforcer an Office of Market Access Assistance.
    (b) Functions.--The Office of Market Access Assistance shall 
provide technical and legal assistance and advice to eligible small 
businesses to enable such small businesses to prepare and file 
petitions (other than those which, in the opinion of the Office of 
Market Access Assistance, are frivolous) under section 302 of the Trade 
Act of 1974 (19 U.S.C. 2412).
    (c) Definition.--The term ``eligible small business'' means any 
business concern which, in the judgment of the Office of Market Access 
Assistance, due to its small size, has neither adequate internal 
resources nor financial ability to obtain qualified outside assistance 
in preparing and filing petitions and complaints under section 302 of 
the Trade Act of 1974. In determining whether a business concern is an 
``eligible small business'', the Office of Market Access Assistance may 
consult with the Administrator of the Small Business Administration and 
the heads of other appropriate Federal departments and agencies.

SEC. 106. RELATIONSHIP TO EXECUTIVE BRANCH.

    (a) Information.--The Congressional Trade Enforcer may secure 
directly from any department or agency of the United States information 
necessary to enable it to carry out this title. Upon request of the 
Congressional Trade Enforcer, the head of that department or agency 
shall provide that information to the Congressional Trade Enforcer.
    (b) Services, Facilities, and Personnel.--Upon request of the 
Congressional Trade Enforcer, the head of any Federal department or 
agency may provide or detail any of the services, facilities, and 
personnel of that department or agency to the Congressional Trade 
Enforcer to assist it in carrying out its duties under this title.

  TITLE II--TRADE ENFORCEMENT DIVISION AND DEPUTY UNITED STATES TRADE 
                  REPRESENTATIVE FOR TRADE ENFORCEMENT

SEC. 201. ESTABLISHMENT OF TRADE ENFORCEMENT DIVISION AND DEPUTY UNITED 
              STATES TRADE REPRESENTATIVE FOR TRADE ENFORCEMENT.

    (a) Establishment.--Chapter 4 of title I of the Trade Act of 1974 
(19 U.S.C. 2171) is amended by adding at the end the following:

``SEC. 142. TRADE ENFORCEMENT DIVISION AND DEPUTY UNITED STATES TRADE 
              REPRESENTATIVE FOR TRADE ENFORCEMENT.

    ``(a) Establishment of Trade Enforcement Division.--There is 
established within the Office of the United States Trade Representative 
a Trade Enforcement Division (in this section referred to as the 
`Division').
    ``(b) Establishment of Position of Deputy United States Trade 
Representative for Trade Enforcement.--
            ``(1) In general.--The Division shall be headed by a Deputy 
        United States Trade Representative for Trade Enforcement.
            ``(2) Appointment and nomination.--The Deputy United States 
        Trade Representative for Trade Enforcement shall be appointed 
        by the President, by and with the advice and consent of the 
        Senate. As an exercise of the rulemaking power of the Senate, 
        any nomination of the Deputy United States Trade Representative 
        for Trade Enforcement submitted to the Senate for its advice 
        and consent, and referred to a committee, shall be referred to 
        the Committee on Finance.
            ``(3) Rank.--The Deputy United States Trade Representative 
        for Trade Enforcement shall hold office at the pleasure of the 
        President and shall have the rank of Ambassador.
    ``(c) Functions of Deputy United States Trade Representative for 
Trade Enforcement.--
            ``(1) Principal function.--The principal function of the 
        Deputy United States Trade Representative for Trade Enforcement 
        shall be to ensure that trading partners of the United States 
        comply with trade agreements to which the United States is a 
        party.
            ``(2) Additional functions.--The Deputy United States Trade 
        Representative for Trade Enforcement shall--
                    ``(A) assist the United States Trade Representative 
                in investigating and prosecuting disputes before the 
                World Trade Organization and pursuant to other 
                bilateral or regional trade agreements to which the 
                United States is a party;
                    ``(B) assist the United States Trade Representative 
                in carrying out the United States Trade 
                Representative's functions under section 141(d);
                    ``(C) make recommendations with respect to the 
                administration of United States trade laws relating to 
                barriers imposed by foreign governments to the 
                importation of United States goods, services, and 
                intellectual property, and other trade matters; and
                    ``(D) perform such other functions as the United 
                States Trade Representative may direct.
    ``(d) Office of Trade Assistance for Small Business.--
            ``(1) Establishment.--There is established within the 
        Division the Office of Trade Assistance for Small Business.
            ``(2) Functions.--The Office of Trade Assistance for Small 
        Business shall provide technical and legal assistance and 
        advice to eligible small businesses to enable such small 
        businesses to prepare and file petitions (other than those 
        that, in the opinion of the Office, are frivolous) under 
        section 302.
            ``(3) Eligible small business defined.--The term `eligible 
        small business' means any business concern that, in the 
        judgment of the Office of Trade Assistance for Small Business, 
        due to its size, has neither adequate internal resources nor 
        financial ability to obtain qualified outside assistance in 
        preparing and filing petitions and complaints under section 
        302. In determining whether a business concern is an eligible 
        small business, the Office of Trade Assistance for Small 
        Business may consult with the Administrator of the Small 
        Business Administration and the heads of other appropriate 
        Federal departments and agencies.''.
    (b) Conforming Amendment.--The table of contents for the Trade Act 
of 1974 is amended by inserting after the item relating to section 141 
the following:

``Sec. 142. Trade Enforcement Division and Deputy United States Trade 
                            Representative for Trade Enforcement.''.
    (c) Compensation for Deputy United States Trade Representative for 
Trade Enforcement.--Section 5314 of title 5, United States Code, is 
amended by striking ``Deputy United States Trade Representatives (3).'' 
and inserting ``Deputy United States Trade Representatives (4).''.
    (d) Conforming Repeal.--Section 2112 of the Bipartisan Trade 
Promotion Authority Act of 2002 (19 U.S.C. 3812) is repealed.

SEC. 202. ESTABLISHMENT OF CHIEF MANUFACTURING NEGOTIATOR.

    (a) Establishment of Positions.--Section 141(b)(2) of the Trade Act 
of 1974 (19 U.S.C. 2171(b)(2)) is amended to read as follows:
    ``(2) There shall be in the Office four Deputy United States Trade 
Representatives (including the Deputy United States Trade 
Representative for Trade Enforcement), one Chief Agricultural 
Negotiator, one Chief Innovation and Intellectual Property Negotiator, 
and one Chief Manufacturing Negotiator who shall all be appointed by 
the President, by and with the advice and consent of the Senate. As an 
exercise of the rulemaking power of the Senate, any nomination of a 
Deputy United States Trade Representative, the Chief Agricultural 
Negotiator, the Chief Innovation and Intellectual Property Negotiator, 
or the Chief Manufacturing Negotiator submitted to the Senate for its 
advice and consent, and referred to a committee, shall be referred to 
the Committee on Finance. Each Deputy United States Trade 
Representative, the Chief Agricultural Negotiator, the Chief Innovation 
and Intellectual Property Negotiator, and the Chief Manufacturing 
Negotiator shall hold office at the pleasure of the President and shall 
have the rank of Ambassador.''.
    (b) Functions of Chief Manufacturing Negotiator.--Section 141(c) of 
the Trade Act of 1974 (19 U.S.C. 2171(c)) is amended by adding at the 
end the following:
    ``(7)(A) The principal function of the Chief Manufacturing 
Negotiator shall be to conduct trade negotiations and to enforce trade 
agreements relating to United States manufacturing products and 
services. The Chief Manufacturing Negotiator shall promote 
manufacturing activities in the United States, shall serve as a 
vigorous advocate on behalf of United States manufacturing firms and 
workers, and shall perform such other functions as the United States 
Trade Representative may direct.
    ``(B) Not later than one year after the date of the enactment of 
this paragraph, and not less frequently than annually thereafter, the 
Chief Manufacturing Negotiator shall submit to the Committee on Finance 
of the Senate and the Committee on Ways and Means of the House of 
Representatives a report on the actions taken by the Chief 
Manufacturing Negotiator in the preceding year.''.
    (c) Compensation.--Section 5314 of title 5, United States Code, is 
amended--
            (1) by striking ``Deputy United States Trade 
        Representatives (3).'' and inserting ``Deputy United States 
        Trade Representatives (4).''; and
            (2) by inserting ``Chief Manufacturing Negotiator.'' after 
        ``Chief Agricultural Negotiator.''.
    (d) Conforming Amendment.--Section 141(c)(4) of the Trade Act of 
1974 (19 U.S.C. 2171(c)(4)) is amended by inserting ``(other than the 
Deputy United States Trade Representative for Trade Enforcement)'' 
after ``Deputy United States Trade Representative''.
    (e) Technical Amendments.--Section 141(e) of the Trade Act of 1974 
(19 U.S.C. 2171(e)) is amended--
            (1) in paragraph (1), by striking ``5314'' and inserting 
        ``5315''; and
            (2) in paragraph (2), by striking ``the maximum rate of pay 
        for grade GS-18, as provided in section 5332'' and inserting 
        ``the maximum rate of pay for level IV of the Executive 
        Schedule in section 5315''.

 TITLE III--CONGRESSIONAL ADVISORY COMMISSION ON WTO DISPUTE SETTLEMENT

SEC. 301. CONGRESSIONAL FINDINGS AND PURPOSE.

    (a) Findings.--Congress finds the following:
            (1) The United States joined the World Trade Organization 
        as an original member with the goal of creating an improved 
        global trading system and providing expanded economic 
        opportunities for United States workers, farmers, and 
        businesses.
            (2) The dispute settlement rules of the WTO were created to 
        enhance the likelihood that governments will observe their WTO 
        obligations.
            (3) These dispute settlement rules help ensure that the 
        United States can reap the full benefits of its participation 
        in the WTO.
            (4) Successful operation of the WTO dispute settlement 
        system was critical to congressional approval of the Uruguay 
        Round Agreements and is critical to continued support by the 
        United States for the WTO. In particular, it is imperative that 
        dispute settlement panels and the Appellate Body--
                    (A) operate with fairness and in an impartial 
                manner;
                    (B) strictly observe the terms of reference and any 
                applicable standard of review set forth in the Uruguay 
                Round Agreements; and
                    (C) not add to the obligations, or diminish the 
                rights, of WTO members under the Uruguay Round 
                Agreements in violation of Articles 3.2 and 19.2 of the 
                Dispute Settlement Understanding.
            (5) An increasing number of reports by dispute settlement 
        panels and the Appellate Body have raised serious concerns 
        within the Congress about the ability of the WTO dispute 
        settlement system to operate in accordance with paragraph (4).
            (6) In particular, several reports of dispute settlement 
        panels and the Appellate Body have added to the obligations and 
        diminished the rights of WTO members, particularly under the 
        Agreement on Implementation of Article VI of the General 
        Agreement on Tariffs and Trade 1994, the Agreement on Subsidies 
        and Countervailing Measures, and the Agreement on Safeguards.
            (7) In order to come into compliance with reports of 
        dispute settlement panels and the Appellate Body that have been 
        adopted by the Dispute Settlement Body, the Congress may need 
        to amend or repeal statutes of the United States. In such 
        cases, the Congress must have a high degree of confidence that 
        the reports are in accordance with paragraph (4).
            (8) The Congress needs impartial, objective, and juridical 
        advice to determine the appropriate response to reports of 
        dispute settlement panels and the Appellate Body.
            (9) The United States remains committed to the 
        multilateral, rules-based trading system.
    (b) Purpose.--It is the purpose of this Act to provide for the 
establishment of the Congressional Advisory Commission on WTO Dispute 
Settlement to provide objective and impartial advice to the Congress on 
the operation of the dispute settlement system of the World Trade 
Organization.

SEC. 302. ESTABLISHMENT OF COMMISSION.

    (a) Establishment.--There is established a commission to be known 
as the Congressional Advisory Commission on WTO Dispute Settlement (in 
this title referred to as the ``Commission'').
    (b) Membership.--
            (1) Composition.--The Commission shall be composed of 5 
        members, all of whom shall be judges or former judges of the 
        Federal judicial circuits and shall be appointed by the Speaker 
        of the House of Representatives and the President pro tempore 
        of the Senate after considering the recommendations of the 
        Chairman and ranking member of the Committee on Finance of the 
        Senate and the Chairman and ranking member of the Committee on 
        Ways and Means of the House of Representatives. Commissioners 
        shall be chosen without regard to political affiliation and 
        solely on the basis of each Commissioner's fitness to perform 
        the duties of a Commissioner.
            (2) Date.--The appointments of the initial members of the 
        Commission shall be made not later than 90 days after the date 
        of the enactment of this Act.
    (c) Period of Appointment; Vacancies.--
            (1) In general.--Members of the Commission shall each be 
        appointed for a term of 5 years, except that of the members 
        first appointed, 3 members shall be appointed for terms of 3 
        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 original appointment was made 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.--Not later than 30 days after the date on 
which all members of the Commission have been appointed, the Commission 
shall hold its first meeting.
    (e) Meetings.--The Commission shall meet at the call of the 
Chairperson.
    (f) Quorum.--A majority of the members of the Commission shall 
constitute a quorum, but a lesser number of members may hold hearings.
    (g) Chairperson and Vice Chairperson.--The Commission shall select 
a Chairperson and Vice Chairperson from among its members.
    (h) Funding.--Members of the Commission shall be allowed travel 
expenses, including per diem in lieu of subsistence at rates authorized 
for employees of agencies under subchapter I of chapter 57 of title 5, 
United States Code, while away from their homes or regular places of 
business in the performance of services for the Commission.

SEC. 303. DUTIES OF THE COMMISSION.

    (a) Advising Congress on the Operation of the WTO Dispute 
Settlement System.--
            (1) In general.--The Commission shall review--
                    (A) all adverse reports of dispute settlement 
                panels and the Appellate Body which are--
                            (i) adopted by the Dispute Settlement Body; 
                        and
                            (ii) the result of a proceeding initiated 
                        against the United States by a WTO member; and
                    (B) upon the request of the Committee on Ways and 
                Means of the House of Representatives or the Committee 
                on Finance of the Senate--
                            (i) any adverse report of a dispute 
                        settlement panel or the Appellate Body--
                                    (I) which is adopted by the Dispute 
                                Settlement Body; and
                                    (II) in which the United States is 
                                a complaining party; or
                            (ii) any other finding which is contained 
                        in a report of a dispute settlement panel or 
                        the Appellate Body that is adopted by the 
                        Dispute Settlement Body.
            (2) Scope of review.--The Commission shall advise the 
        Congress in connection with each adverse finding or other 
        finding under paragraph (1)(B) only whether--
                    (A) the dispute settlement panel or the Appellate 
                Body, as the case may be--
                            (i) exceeded its authority or its terms of 
                        reference;
                            (ii) added to the obligations, or 
                        diminished the rights, of the United States 
                        under the Uruguay Round Agreement which is the 
                        subject of the finding;
                            (iii) acted arbitrarily or capriciously, 
                        engaged in misconduct, or demonstrably departed 
                        from the procedures specified for panels and 
                        the Appellate Body in the applicable Uruguay 
                        Round Agreement; and
                            (iv) deviated from the applicable standard 
                        of review, including in antidumping, 
                        countervailing duty, and other unfair trade 
                        remedy cases, the standard of review set forth 
                        in Article 17.6 of the Agreement on 
                        Implementation of Article VI of the General 
                        Agreement on Tariffs and Trade 1994; and
                    (B) the finding is consistent with the original 
                understanding by the United States of the Uruguay Round 
                Agreement that is the subject of the finding as 
                explained in the statement of administrative action 
                approved under section 101(a) of the Uruguay Round 
                Agreements Act (19 U.S.C. 3511(a)).
            (3) No deference.--Applying the standards set forth in 
        paragraph (2) requires that the Commission not accord deference 
        to findings of law made by the dispute settlement panel or the 
        Appellate Body, as the case may be.
    (b) Determination; Report.--
            (1) Determination.--
                    (A) In general.--Not later than 150 days after the 
                date on which the Commission receives notice of a 
                report or request under section 304(b), the Commission 
                shall make a written determination with respect to the 
                matters described in paragraph (2) of subsection (a), 
                including a full analysis of the basis for its 
                determination. A vote by a majority of the members of 
                the Commission shall constitute a determination of the 
                Commission, although the members need not agree on the 
                basis for their vote.
                    (B) Dissenting or concurring opinions.--Any member 
                of the Commission who disagrees with a determination of 
                the Commission or who concurs in such a determination 
                on a basis different from that of the Commission or 
                other members of the Commission, may write an opinion 
                expressing such disagreement or concurrence, as the 
                case may be.
            (2) Report.--The Commission shall promptly report the 
        determinations described in paragraph (1)(A) to the Committee 
        on Ways and Means of the House of Representatives and the 
        Committee on Finance of the Senate. The Commission shall 
        include with the report any opinions written under paragraph 
        (1)(B) with respect to the determination.
    (c) Availability to the Public.--Each report of the Commission 
under subsection (b)(2), together with the opinions included with the 
report, shall be made available to the public.

SEC. 304. POWERS OF THE COMMISSION.

    (a) Hearings.--The Commission may hold a public hearing to solicit 
views concerning a report of a dispute settlement panel or the 
Appellate Body described in section 303(a)(1), if the Commission 
considers such hearing to be necessary to carry out the purpose of this 
Act. The Commission shall provide reasonable notice of a hearing held 
pursuant to this subsection.
    (b) Information From Interested Parties and Federal Agencies.--
            (1) Notice to commission.--
                    (A) Under section 303(a)(1)(A).--The Trade 
                Representative shall advise the Commission not later 
                than 5 business days after the date the Dispute 
                Settlement Body adopts a report of a panel or the 
                Appellate Body that is to be reviewed by the Commission 
                under section 303(a)(1)(A).
                    (B) Under section 303(a)(1)(B).--The Committee on 
                Ways and Means or the Committee on Finance, as the case 
                may be, may make and notify the Commission of a request 
                under section 303(a)(1)(B) not later than 1 year after 
                the Dispute Settlement Body adopts the report that is 
                the subject of the request.
                    (C) Reports adopted prior to appointment of 
                commission.--With respect to any report to which 
                section 303(a)(1)(B) applies and that is adopted before 
                the date on which the first members of the Commission 
                are appointed under section 302(b)(2), the Committee on 
                Ways and Means or the Committee on Finance, as the case 
                may be, may make and notify the Commission of a request 
                under section 303(a)(1)(B) with respect to that report 
                not later than 1 year after the date on which the first 
                members of the Commission are appointed under section 
                302(b)(2).
            (2) Submissions and requests for information.--
                    (A) In general.--The Commission shall promptly 
                publish in the Federal Register notice of the notice 
                received under paragraph (1) from the Trade 
                Representative, the Committee on Ways and Means, or the 
                Committee on Finance, as the case may be, along with 
                notice of an opportunity for interested parties to 
                submit written comments to the Commission. The 
                Commission shall make comments submitted pursuant to 
                the preceding sentence available to the public.
                    (B) Information from federal agencies and 
                departments.--The Commission may also secure directly 
                from any Federal department or agency such information 
                as the Commission considers necessary to carry out the 
                provisions of this Act. Upon the request of the 
                chairperson of the Commission, the head of such 
                department or agency shall furnish the information 
                requested to the Commission in a timely manner.
            (3) Access to panel and appellate body documents.--
                    (A) In general.--The Trade Representative shall 
                make available to the Commission all submissions and 
                relevant documents relating to a report of a panel or 
                the Appellate Body described in section 303(a)(1), 
                including any information contained in such submissions 
                identified by the provider of the information as 
                proprietary information or information designated as 
                confidential by a foreign government.
                    (B) Public access.--Any document which the Trade 
                Representative submits to the Commission shall be 
                available to the public, except information which is 
                identified as proprietary or confidential or the 
                disclosure of which would otherwise violate the rules 
                of the WTO.
    (c) Assistance From Federal Agencies; Confidentiality.--
            (1) Administrative assistance.--Any agency or department of 
        the United States that is designated by the President shall 
        provide administrative services, funds, facilities, staff, or 
        other support services to the Commission to assist the 
        Commission with the performance of the Commission's functions.
            (2) Confidentiality.--The Commission shall protect from 
        disclosure any document or information submitted to it by a 
        department or agency of the United States which the agency or 
        department requests be kept confidential. The Commission shall 
        not be considered to be an agency for purposes of section 552 
        of title 5, United States Code.

SEC. 305. PARTICIPATION IN WTO PANEL PROCEEDINGS.

    (a) In General.--If the United States Trade Representative, in 
proceedings before a dispute settlement panel or the Appellate Body of 
the WTO, seeks to enforce United States rights under a multilateral 
trade agreement or to defend a challenged action or determination of 
the United States Government, a United States citizen or an alien 
lawfully admitted for permanent residence to the United States that--
            (1) is supportive of the United States Government's 
        position before the panel or Appellate Body; and
            (2) has a direct economic interest in the panel's or 
        Appellate Body's resolution of the matters in dispute,
shall, to the extent appropriate, be permitted to participate in 
consultations and panel proceedings. The Trade Representative shall 
issue regulations, consistent with subsections (b) and (c), ensuring 
full and effective participation by any such private person.
    (b) Access to Information.--The United States Trade Representative 
shall make available to persons described in subsection (a) all 
information presented to or otherwise obtained by the Trade 
Representative in connection with a WTO dispute settlement proceeding. 
The United States Trade Representative shall promulgate regulations 
implementing a protective order system to protect information 
designated by the submitting member as confidential.
    (c) Participation in Panel Process.--Upon request from a person 
described in subsection (a), the United States Trade Representative 
shall--
            (1) consult in advance with such person regarding the 
        content of written submissions from the United States to the 
        WTO panel concerned or to the other member countries involved;
            (2) include, where appropriate, such person or its 
        appropriate representative as an advisory member of the 
        delegation in sessions of the dispute settlement panel;
            (3) allow such special delegation member, where such member 
        would bring special knowledge to the proceeding, to appear 
        before the panel, directly or through counsel, under the 
        supervision of responsible United States Government officials; 
        and
            (4) in proceedings involving confidential information, 
        allow appearance of such person only through counsel as a 
        member of the special delegation.

SEC. 306. DEFINITIONS.

    In this title:
            (1) Adverse finding.--The term ``adverse finding'' means--
                    (A) in a proceeding of a panel or the Appellate 
                Body that is initiated against the United States, a 
                finding by the panel or the Appellate Body that any law 
                or regulation of, or application thereof by, the United 
                States, or any State, is inconsistent with the 
                obligations of the United States under a Uruguay Round 
                Agreement (or nullifies or impairs benefits accruing to 
                a WTO member under such an Agreement); or
                    (B) in a proceeding of a panel or the Appellate 
                Body in which the United States is a complaining party, 
                any finding by the panel or the Appellate Body that a 
                measure of the party complained against is not 
                inconsistent with that party's obligations under a 
                Uruguay Round Agreement (or does not nullify or impair 
                benefits accruing to the United States under such an 
                Agreement).
            (2) Appellate body.--The term ``Appellate Body'' means the 
        Appellate Body established by the Dispute Settlement Body 
        pursuant to Article 17.1 of the Dispute Settlement 
        Understanding.
            (3) Dispute settlement body.--The term ``Dispute Settlement 
        Body'' means the Dispute Settlement Body established pursuant 
        to the Dispute Settlement Understanding.
            (4) Dispute settlement panel; panel.--The terms ``dispute 
        settlement panel'' and ``panel'' mean a panel established 
        pursuant to Article 6 of the Dispute Settlement Understanding.
            (5) Dispute settlement understanding.--The term ``Dispute 
        Settlement Understanding'' means the Understanding on Rules and 
        Procedures Governing the Settlement of Disputes referred to in 
        section 101(d)(16) of the Uruguay Round Agreements Act (19 
        U.S.C. 3511(d)(16)).
            (6) Terms of reference.--The term ``terms of reference'' 
        has the meaning given that term in the Dispute Settlement 
        Understanding.
            (7) Trade representative.--The term ``Trade 
        Representative'' means the United States Trade Representative.
            (8) Uruguay round agreement.--The term ``Uruguay Round 
        Agreement'' means any of the Agreements described in section 
        101(d) of the Uruguay Round Agreements Act.
            (9) World trade organization; wto.--The terms ``World Trade 
        Organization'' and ``WTO'' mean the organization established 
        pursuant to the WTO Agreement.
            (10) WTO agreement.--The term ``WTO Agreement'' means the 
        Agreement Establishing the World Trade Organization entered 
        into on April 15, 1994.
            (11) WTO member.--The term ``WTO member'' has the meaning 
        given that term in section 2(10) of the Uruguay Round 
        Agreements Act (19 U.S.C. 3501(10)).

  TITLE IV--IMPOSITION OF COUNTERVAILING DUTIES TO ADDRESS SUBSIDIES 
            RELATING TO FUNDAMENTALLY UNDERVALUED CURRENCIES

SEC. 401. CLARIFICATION REGARDING DEFINITION OF COUNTERVAILABLE 
              SUBSIDY.

    (a) Benefit Conferred.--Section 771(5)(E) of the Tariff Act of 1930 
(19 U.S.C. 1677(5)(E)) is amended--
            (1) in clause (iii), by striking ``and'' at the end;
            (2) in clause (iv), by striking the period at the end and 
        inserting ``, and''; and
            (3) by inserting after clause (iv) the following new 
        clause:
                            ``(v) in the case in which the currency of 
                        a country in which the subject merchandise is 
                        produced is exchanged for foreign currency 
                        obtained from export transactions, and the 
                        currency of such country is a fundamentally 
                        undervalued currency, as defined in paragraph 
                        (37), the difference between the amount of the 
                        currency of such country provided and the 
                        amount of the currency of such country that 
                        would have been provided if the real effective 
                        exchange rate of the currency of such country 
                        were not undervalued, as determined pursuant to 
                        paragraph (38).''.
    (b) Export Subsidy.--Section 771(5A)(B) of the Tariff Act of 1930 
(19 U.S.C. 1677(5A)(B)) is amended by adding at the end the following 
new sentence: ``In the case of a subsidy relating to a fundamentally 
undervalued currency, the fact that the subsidy may also be provided in 
circumstances not involving export shall not, for that reason alone, 
mean that the subsidy cannot be considered contingent upon export 
performance.''.
    (c) Definition of Fundamentally Undervalued Currency.--Section 771 
of the Tariff Act of 1930 (19 U.S.C. 1677) is amended by adding at the 
end the following new paragraph:
            ``(37) Fundamentally undervalued currency.--The 
        administering authority shall determine that the currency of a 
        country in which the subject merchandise is produced is a 
        `fundamentally undervalued currency' if--
                    ``(A) the government of the country (including any 
                public entity within the territory of the country) 
                engages in protracted, large-scale intervention in one 
                or more foreign exchange markets during part or all of 
                the 18-month period that represents the most recent 18 
                months for which the information required under 
                paragraph (38) is reasonably available, but that does 
                not include any period of time later than the final 
                month in the period of investigation or the period of 
                review, as applicable;
                    ``(B) the real effective exchange rate of the 
                currency is undervalued by at least 5 percent, on 
                average and as calculated under paragraph (38), 
                relative to the equilibrium real effective exchange 
                rate for the country's currency during the 18-month 
                period;
                    ``(C) during the 18-month period, the country has 
                experienced significant and persistent global current 
                account surpluses; and
                    ``(D) during the 18-month period, the foreign asset 
                reserves held by the government of the country exceed--
                            ``(i) the amount necessary to repay all 
                        debt obligations of the government falling due 
                        within the coming 12 months;
                            ``(ii) 20 percent of the country's money 
                        supply, using standard measures of M2; and
                            ``(iii) the value of the country's imports 
                        during the previous 4 months.''.
    (d) Definition of Real Effective Exchange Rate Undervaluation.--
Section 771 of the Tariff Act of 1930 (19 U.S.C. 1677), as amended by 
subsection (c) of this section, is further amended by adding at the end 
the following new paragraph:
            ``(38) Real effective exchange rate undervaluation.--The 
        calculation of real effective exchange rate undervaluation, for 
        purposes of paragraph (5)(E)(v) and paragraph (37), shall--
                    ``(A)(i) rely upon, and where appropriate be the 
                simple average of, the results yielded from application 
                of the approaches described in the guidelines of the 
                International Monetary Fund's Consultative Group on 
                Exchange Rate Issues; or
                    ``(ii) if the guidelines of the International 
                Monetary Fund's Consultative Group on Exchange Rate 
                Issues are not available, be based on generally 
                accepted economic and econometric techniques and 
                methodologies to measure the level of undervaluation;
                    ``(B) rely upon data that are publicly available, 
                reliable, and compiled and maintained by the 
                International Monetary Fund or, if the International 
                Monetary Fund cannot provide the data, by other 
                international organizations or by national governments; 
                and
                    ``(C) use inflation-adjusted, trade-weighted 
                exchange rates.''.

SEC. 402. REPORT ON IMPLEMENTATION OF TITLE.

    (a) In General.--Not later than 9 months after the date of the 
enactment of this Act, the Comptroller General of the United States 
shall submit to Congress a report on the implementation of the 
amendments made by this title.
    (b) Matters To Be Included.--The report required by subsection (a) 
shall include a description of the extent to which United States 
industries that have been materially injured by reason of imports of 
subject merchandise produced in foreign countries with fundamentally 
undervalued currencies have received relief under title VII of the 
Tariff Act of 1930 (19 U.S.C. 1671 et seq.), as amended by this title.

SEC. 403. APPLICATION TO GOODS FROM CANADA AND MEXICO.

    Pursuant to article 1902 of the North American Free Trade Agreement 
and section 408 of the North American Free Trade Agreement 
Implementation Act of 1993 (19 U.S.C. 3438), the amendments made by 
section 501 of this title shall apply to goods from Canada and Mexico.

TITLE V--PROCEDURES FOR INVESTIGATING CLAIMS OF EVASION OF ANTIDUMPING 
                     AND COUNTERVAILING DUTY ORDERS

SEC. 501. PROTECTION OF BUSINESS PROPRIETARY INFORMATION.

    Section 517(b) of the Tariff Act of 1930 (19 U.S.C. 1517(b)) is 
amended by adding at the end the following:
            ``(8) Business proprietary information.--
                    ``(A) Establishment of procedures.--For each 
                investigation conducted under paragraph (1), the 
                Commissioner shall establish procedures for the 
                submission of business proprietary information under an 
                administrative protective order that--
                            ``(i) protects against public disclosure of 
                        such information; and
                            ``(ii) for purposes of submitting comments 
                        to the Commissioner, provides limited access to 
                        such information for--
                                    ``(I) the person that submitted the 
                                petition under paragraph (2); and
                                    ``(II) the person alleged to have 
                                entered covered merchandise into the 
                                customs territory of the United States 
                                through evasion.
                    ``(B) Administration in accordance with other 
                procedures.--The procedures established under 
                subparagraph (A) shall be administered, to the maximum 
                extent practicable, in accordance with administrative 
                protective order procedures under section 777 by the 
                administering authority.
                    ``(C) Disclosure of business proprietary 
                information.--The Commissioner shall, in accordance 
                with the procedures established under subparagraph (A), 
                make all business proprietary information presented to, 
                or obtained by, the Commissioner during an 
                investigation available to the persons specified in 
                subparagraph (A)(ii) under an administrative protective 
                order, regardless of when such information is submitted 
                during an investigation.''.

SEC. 502. APPLICATION TO CANADA AND MEXICO.

    Pursuant to article 1902 of the North American Free Trade Agreement 
and section 408 of the North American Free Trade Agreement 
Implementation Act (19 U.S.C. 3438), the amendments made by this title 
shall apply with respect to goods from Canada and Mexico.

   TITLE VI--MATTERS TO ENCOURAGE DOMESTIC INSOURCING AND DISCOURAGE 
                          FOREIGN OUTSOURCING

SEC. 601. CREDIT FOR INSOURCING EXPENSES.

    (a) In General.--Subpart D of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 is amended by adding at the end 
the following new section:

``SEC. 45S. CREDIT FOR INSOURCING EXPENSES.

    ``(a) In General.--For purposes of section 38, the insourcing 
expenses credit for any taxable year is an amount equal to 20 percent 
of the eligible insourcing expenses of the taxpayer which are taken 
into account in such taxable year under subsection (d).
    ``(b) Eligible Insourcing Expenses.--For purposes of this section--
            ``(1) In general.--The term `eligible insourcing expenses' 
        means--
                    ``(A) eligible expenses paid or incurred by the 
                taxpayer in connection with the elimination of any 
                business unit of the taxpayer (or of any member of any 
                expanded affiliated group in which the taxpayer is also 
                a member) located outside the United States, and
                    ``(B) eligible expenses paid or incurred by the 
                taxpayer in connection with the establishment of any 
                business unit of the taxpayer (or of any member of any 
                expanded affiliated group in which the taxpayer is also 
                a member) located within the United States,
        if such establishment constitutes the relocation of the 
        business unit so eliminated. For purposes of the preceding 
        sentence, a relocation shall not be treated as failing to occur 
        merely because such elimination occurs in a different taxable 
        year than such establishment.
            ``(2) Eligible expenses.--The term `eligible expenses' 
        means--
                    ``(A) any amount for which a deduction is allowed 
                to the taxpayer under section 162, and
                    ``(B) permit and license fees, lease brokerage 
                fees, equipment installation costs, and, to the extent 
                provided by the Secretary, other similar expenses.
        Such term does not include any compensation which is paid or 
        incurred in connection with severance from employment and, to 
        the extent provided by the Secretary, any similar amount.
            ``(3) Business unit.--The term `business unit' means--
                    ``(A) any trade or business, and
                    ``(B) any line of business, or functional unit, 
                which is part of any trade or business.
            ``(4) Expanded affiliated group.--The term `expanded 
        affiliated group' means an affiliated group as defined in 
        section 1504(a), determined without regard to section 
        1504(b)(3) and by substituting `more than 50 percent' for `at 
        least 80 percent' each place it appears in section 1504(a). A 
        partnership or any other entity (other than a corporation) 
        shall be treated as a member of an expanded affiliated group if 
        such entity is controlled (within the meaning of section 
        954(d)(3)) by members of such group (including any entity 
        treated as a member of such group by reason of this paragraph).
            ``(5) Expenses must be pursuant to insourcing plan.--
        Amounts shall be taken into account under paragraph (1) only to 
        the extent that such amounts are paid or incurred pursuant to a 
        written plan to carry out the relocation described in paragraph 
        (1).
            ``(6) Operating expenses not taken into account.--Any 
        amount paid or incurred in connection with the ongoing 
        operation of a business unit shall not be treated as an amount 
        paid or incurred in connection with the establishment or 
        elimination of such business unit.
    ``(c) Increased Domestic Employment Requirement.--No credit shall 
be allowed under this section unless the number of full-time equivalent 
employees of the taxpayer for the taxable year for which the credit is 
claimed exceeds the number of full-time equivalent employees of the 
taxpayer for the last taxable year ending before the first taxable year 
in which such eligible insourcing expenses were paid or incurred. For 
purposes of this subsection, full-time equivalent employees has the 
meaning given such term under section 45R(d) (and the applicable rules 
of section 45R(e)), determined by only taking into account wages (as 
otherwise defined in section 45R(e)) paid with respect to services 
performed within the United States. All employers treated as a single 
employer under subsection (b), (c), (m), or (o) of section 414 shall be 
treated as a single employer for purposes of this subsection.
    ``(d) Credit Allowed Upon Completion of Insourcing Plan.--
            ``(1) In general.--Except as provided in paragraph (2), 
        eligible insourcing expenses shall be taken into account under 
        subsection (a) in the taxable year during which the plan 
        described in subsection (b)(5) has been completed and all 
        eligible insourcing expenses pursuant to such plan have been 
        paid or incurred.
            ``(2) Election to apply employment test and claim credit in 
        first full taxable year after completion of plan.--If the 
        taxpayer elects the application of this paragraph, eligible 
        insourcing expenses shall be taken into account under 
        subsection (a) in the first taxable year after the taxable year 
        described in paragraph (1).
    ``(e) Possessions Treated as Part of the United States.--For 
purposes of this section, the term `United States' shall be treated as 
including each possession of the United States (including the 
Commonwealth of Puerto Rico and the Commonwealth of the Northern 
Mariana Islands).
    ``(f) Regulations.--The Secretary shall prescribe such regulations 
or other guidance as may be necessary or appropriate to carry out the 
purposes of this section.''.
    (b) Credit To Be Part of General Business Credit.--Section 38(b) of 
such Code is amended by striking ``plus'' at the end of paragraph (35), 
by striking the period at the end of paragraph (36) and inserting ``, 
plus'', and by adding at the end the following new paragraph:
            ``(37) the insourcing expenses credit determined under 
        section 45S(a).''.
    (c) Clerical Amendment.--The table of sections for subpart D of 
part IV of subchapter A of chapter 1 of such Code is amended by adding 
at the end the following new item:

``Sec. 45S. Credit for insourcing expenses.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to amounts paid or incurred after the date of the enactment of 
this Act.
    (e) Application to United States Possessions.--
            (1) Payments to possessions.--
                    (A) Mirror code possessions.--The Secretary of the 
                Treasury shall make periodic payments to each 
                possession of the United States with a mirror code tax 
                system in an amount equal to the loss to that 
                possession by reason of section 45S of the Internal 
                Revenue Code of 1986. Such amount shall be determined 
                by the Secretary of the Treasury based on information 
                provided by the government of the respective 
                possession.
                    (B) Other possessions.--The Secretary of the 
                Treasury shall make annual payments to each possession 
                of the United States which does not have a mirror code 
                tax system in an amount estimated by the Secretary of 
                the Treasury as being equal to the aggregate benefits 
                that would have been provided to residents of such 
                possession by reason of section 45S of such Code if a 
                mirror code tax system had been in effect in such 
                possession. The preceding sentence shall not apply with 
                respect to any possession of the United States unless 
                such possession has a plan, which has been approved by 
                the Secretary of the Treasury, under which such 
                possession will promptly distribute such payment to the 
                residents of such possession.
            (2) Coordination with credit allowed against united states 
        income taxes.--No credit shall be allowed against United States 
        income taxes under section 45S of such Code to any person--
                    (A) to whom a credit is allowed against taxes 
                imposed by the possession by reason of such section, or
                    (B) who is eligible for a payment under a plan 
                described in paragraph (1)(B).
            (3) Definitions and special rules.--
                    (A) Possessions of the united states.--For purposes 
                of this section, the term ``possession of the United 
                States'' includes the Commonwealth of Puerto Rico and 
                the Commonwealth of the Northern Mariana Islands.
                    (B) Mirror code tax system.--For purposes of this 
                section, the term ``mirror code tax system'' means, 
                with respect to any possession of the United States, 
                the income tax system of such possession if the income 
                tax liability of the residents of such possession under 
                such system is determined by reference to the income 
                tax laws of the United States as if such possession 
                were the United States.
                    (C) Treatment of payments.--For purposes of section 
                1324(b)(2) of title 31, United States Code, the 
                payments under this section shall be treated in the 
                same manner as a refund due from sections referred to 
                in such section 1324(b)(2).

SEC. 602. DENIAL OF DEDUCTION FOR OUTSOURCING EXPENSES.

    (a) In General.--Part IX of subchapter B of chapter 1 of the 
Internal Revenue Code of 1986 is amended by adding at the end the 
following new section:

``SEC. 280I. OUTSOURCING EXPENSES.

    ``(a) In General.--No deduction otherwise allowable under this 
chapter shall be allowed for any specified outsourcing expense.
    ``(b) Specified Outsourcing Expense.--For purposes of this 
section--
            ``(1) In general.--The term `specified outsourcing expense' 
        means--
                    ``(A) any eligible expense paid or incurred by the 
                taxpayer in connection with the elimination of any 
                business unit of the taxpayer (or of any member of any 
                expanded affiliated group in which the taxpayer is also 
                a member) located within the United States, and
                    ``(B) any eligible expense paid or incurred by the 
                taxpayer in connection with the establishment of any 
                business unit of the taxpayer (or of any member of any 
                expanded affiliated group in which the taxpayer is also 
                a member) located outside the United States,
        if such establishment constitutes the relocation of the 
        business unit so eliminated. For purposes of the preceding 
        sentence, a relocation shall not be treated as failing to occur 
        merely because such elimination occurs in a different taxable 
        year than such establishment.
            ``(2) Application of certain definitions and rules.--
                    ``(A) Definitions.--For purposes of this section, 
                the terms `eligible expenses', `business unit', and 
                `expanded affiliated group' shall have the respective 
                meanings given such terms by section 45S(b).
                    ``(B) Operating expenses not taken into account.--A 
                rule similar to the rule of section 45S(b)(6) shall 
                apply for purposes of this section.
    ``(c) Special Rules.--
            ``(1) Application to deductions for depreciation and 
        amortization.--In the case of any portion of a specified 
        outsourcing expense which is not deductible in the taxable year 
        in which paid or incurred, such portion shall neither be 
        chargeable to capital account nor amortizable.
            ``(2) Possessions treated as part of the united states.--
        For purposes of this section, the term `United States' shall be 
        treated as including each possession of the United States 
        (including the Commonwealth of Puerto Rico and the Commonwealth 
        of the Northern Mariana Islands).
    ``(d) Regulations.--The Secretary shall prescribe such regulations 
or other guidance as may be necessary or appropriate to carry out the 
purposes of this section, including regulations which provide (or 
create a rebuttable presumption) that certain establishments of 
business units outside the United States will be treated as relocations 
(based on timing or such other factors as the Secretary may provide) of 
business units eliminated within the United States.''.
    (b) Limitation on Subpart F Income of Controlled Foreign 
Corporations Determined Without Regard to Specified Outsourcing 
Expenses.--Section 952(c) of such Code is amended by adding at the end 
the following new paragraph:
            ``(4) Earnings and profits determined without regard to 
        specified outsourcing expenses.--For purposes of this 
        subsection, earnings and profits of any controlled foreign 
        corporation shall be determined without regard to any specified 
        outsourcing expense (as defined in section 280I(b)).''.
    (c) Clerical Amendment.--The table of sections for part IX of 
subchapter B of chapter 1 of such Code is amended by adding at the end 
the following new item:

``Sec. 280I. Outsourcing expenses.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to amounts paid or incurred after the date of the enactment of 
this Act.

        TITLE VII--MATTERS RELATING TO ENVIRONMENTAL PROTECTIONS

SEC. 701. ENVIRONMENTAL PROTECTION IN TRADE RELATIONS.

    Section 301(d)(3)(B) of the Trade Act of 1974 (19 U.S.C. 
2411(d)(3)(B)) is amended--
            (1) in clause (iii)(V), by striking ``or'' at the end;
            (2) in clause (iv), by striking the period at the end and 
        inserting ``, or'';
            (3) by moving clause (iv), as so amended, two ems to the 
        left; and
            (4) by adding at the end the following:
                            ``(v) constitutes a persistent pattern of 
                        conduct that--
                                    ``(I) fails to effectively enforce 
                                the environmental laws of a foreign 
                                country,
                                    ``(II) waives or otherwise 
                                derogates from the environmental laws 
                                of a foreign country or weakens the 
                                protections afforded by such laws,
                                    ``(III) fails to provide for 
                                judicial or administrative proceedings 
                                giving access to remedies for 
                                violations of the environmental laws of 
                                a foreign country,
                                    ``(IV) fails to provide appropriate 
                                and effective sanctions or remedies for 
                                violations of the environmental laws of 
                                a foreign country, or
                                    ``(V) fails to implement 
                                environmental commitments in agreements 
                                to which a foreign country and the 
                                United States are a party.''.

SEC. 702. IDENTIFICATION OF FOREIGN COUNTRY TRADE PRACTICES THAT 
              NEGATIVELY AFFECT THE ENVIRONMENT.

    (a) In General.--Chapter 1 of title III of the Trade Act of 1974 
(19 U.S.C. 2411 et seq.) is amended by adding at the end the following:

``SEC. 311. IDENTIFICATION OF FOREIGN COUNTRY TRADE PRACTICES THAT 
              NEGATIVELY AFFECT THE ENVIRONMENT.

    ``(a) Identification.--
            ``(1) In general.--The Trade Representative shall identify 
        those foreign country trade practices that cause negative 
        environmental impacts on the protection of human, animal, or 
        plant life or health, or the conservation of exhaustible 
        natural resources in the United States, the foreign country, a 
        third country, or internationally.
            ``(2) Factors.--In identifying foreign country trade 
        practices under paragraph (1), the Trade Representative shall 
        take into account all relevant factors, including--
                    ``(A) the strength of the connection between trade 
                and the negative environmental impact;
                    ``(B) the significance of the negative 
                environmental impact on the protection of human, animal 
                or plant life or health, or the conservation of 
                exhaustible natural resources; and
                    ``(C) the costs and benefits of addressing the 
                negative environmental impact through the authorities 
                under section 301.
            ``(3) Consultation.--In identifying foreign country trade 
        practices under paragraph (1), the Trade Representative shall 
        provide the opportunity for input by and consultation with 
        interested persons, including private or nongovernmental 
        organizations working towards environmental protection or 
        conservation, domestic industrial users of any goods that may 
        be affected by this section, and appropriate Federal 
        departments and agencies.
    ``(b) Report.--
            ``(1) In general.--Not later than 270 days after the date 
        of submission of a report under section 181(b) of this Act, and 
        every 2 years thereafter, the Trade Representative shall submit 
        to the Committee on Ways and Means of the House of 
        Representatives and the Committee on Finance of the Senate and 
        publish in the Federal Register a report on the foreign country 
        trade practices identified under subsection (a).
            ``(2) Matters to be included.--The Trade Representative may 
        include in the report, if appropriate--
                    ``(A) a description of other foreign country trade 
                practices that may in the future warrant inclusion in 
                the report as foreign country trade practices that 
                negatively affect the environment; and
                    ``(B) a statement regarding other foreign country 
                trade practices that negatively affect the environment 
                that have not been identified because they are subject 
                to other provisions of United States trade law, 
                existing bilateral trade agreements, or trade 
                negotiations, and progress is being made toward the 
                mitigation, reduction, or elimination of the negative 
                environmental impacts of such foreign country trade 
                practices.''.
    (b) Clerical Amendment.--The table of contents for the Trade Act of 
1974 is amended by inserting after the item relating to section 310 the 
following new item:

``Sec. 311. Identification of foreign country trade practices that 
                            negatively affect the environment.''.

                       TITLE VIII--OTHER MATTERS

SEC. 801. MODIFICATION OF AVAILABILITY OF AMOUNTS FROM TRADE 
              ENFORCEMENT TRUST FUND.

    Section 611(d)(1) of the Trade Facilitation and Trade Enforcement 
Act of 2015 (Public Law 114-125; 19 U.S.C. 4405(d)(1)) is amended by 
striking ``, only as provided by appropriations Acts,''.

SEC. 802. GOVERNMENT ACCOUNTABILITY OFFICE REPORT ON COMMITMENTS UNDER 
              CERTAIN INTERNATIONAL FORA.

    (a) In General.--Not later than December 31 of each year after 
2018, the Comptroller General of the United States shall submit to the 
Committee on Ways and Means of the House of Representatives and the 
Committee on Finance of the Senate a report that assesses the progress 
in achieving compliance by other countries with commitments made under 
the international fora described in subsection (b).
    (b) International Fora Described.--The international fora described 
in this subsection are the following:
            (1) The Group of Seven (G-7).
            (2) The Group of Twenty (G-20).
            (3) The International Monetary Fund.
            (4) The U.S.-China Strategic and Economic Dialogue.
            (5) The U.S.-China Joint Commission on Commerce and Trade.
            (6) The Global Forum on Excess Steel Capacity.
            (7) The Steel Committee of the Organization for Economic 
        Cooperation and Development.
            (8) The High Level Economic Dialogue with Mexico.
            (9) The U.S.-India Strategic and Commercial Dialogue.

SEC. 803. GOVERNMENT ACCOUNTABILITY OFFICE REPORT ON ENFORCEMENT OF 
              CHILD LABOR PROHIBITION.

    Not later than May 31 of each year after 2018, the Comptroller 
General of the United States shall submit to the Committee on Ways and 
Means of the House of Representatives and the Committee on Finance of 
the Senate a report that assesses the progress in ensuring that goods 
made with child labor do not enter the customs territory of the United 
States.

SEC. 804. CONGRESSIONAL ADVISORY GROUPS ON ENFORCEMENT.

    (a) In General.--Section 104(c) of the Bipartisan Congressional 
Trade Priorities and Accountability Act of 2015 (19 U.S.C. 4203(c)) is 
amended--
            (1) by redesignating subsections (d) through (f) as 
        subsections (e) through (g), respectively; and
            (2) by inserting after subsection (c) the following:
    ``(d) Congressional Advisory Groups on Enforcement.--
            ``(1) In general.--By not later than 60 days after the date 
        of the enactment of the Trade Enforcement Act of 2017, and not 
        later than 30 days after the convening of each Congress, the 
        chairman of the Committee on Ways and Means of the House of 
        Representatives shall convene the House Advisory Group on 
        Enforcement and the chairman of the Committee on Finance of the 
        Senate shall convene the Senate Advisory Group on Enforcement 
        (in this subsection referred to collectively as the 
        `congressional advisory groups on enforcement').
            ``(2) Members and functions.--
                    ``(A) Membership of the house advisory group on 
                enforcement.--In each Congress, the House Advisory 
                Group on Enforcement shall be comprised of the 
                following Members of the House of Representatives:
                            ``(i) The chairman and ranking minority 
                        member of the Committee on Ways and Means and 
                        every member of the Subcommittee of Trade of 
                        such committee.
                            ``(ii) The chairman and ranking minority 
                        member, or their designees, of the committees 
                        of the House of Representatives that would 
                        have, under the Rules of the House of 
                        Representatives, jurisdiction over provisions 
                        of law affected by trade enforcement at any 
                        time during that Congress and to which this Act 
                        would apply.
                    ``(B) Membership of the senate advisory group on 
                enforcement.--In each Congress, the Senate Advisory 
                Group on Enforcement shall be comprised of the 
                following Members of the Senate:
                            ``(i) The chairman and ranking minority 
                        member of the Committee on Finance and every 
                        member of the Subcommittee on International 
                        Trade, Customs, and Global Competitiveness of 
                        such committee.
                            ``(ii) The chairman and ranking minority 
                        member, or their designees, of the committees 
                        of the Senate that would have, under the Rules 
                        of the Senate, jurisdiction over provisions of 
                        law affected by trade enforcement at any time 
                        during that Congress and to which this Act 
                        would apply.
                    ``(C) Consultation and advice.--The congressional 
                advisory groups on enforcement shall consult with and 
                provide advice to the Trade Representative regarding 
                the formulation and implementation of specific 
                objectives, strategies, and positions with respect to 
                enforcing the provisions of existing trade agreements 
                to which the United States is a party.
                    ``(D) Chair.--The House Advisory Group on 
                Enforcement shall be chaired by the chairman of the 
                Committee on Ways and Means of the House of 
                Representatives, and the Senate Advisory Group on 
                Enforcement shall be chaired by the chairman of the 
                Committee on Finance of the Senate.
            ``(3) Meetings.--
                    ``(A) Quarterly meetings.--The President shall meet 
                with the congressional advisory groups on enforcement 
                at least four times in each calendar year.
                    ``(B) Request for meeting.--Upon the request of a 
                majority of the members of either of the congressional 
                advisory groups on enforcement, the President shall 
                meet with that group.''.
    (b) Procedural Disapproval Resolution.--Section 106(b)(1)(B)(ii) of 
the Bipartisan Congressional Trade Priorities and Accountability Act of 
2015 (19 U.S.C. 4205(b)(1)(B)(ii)) is amended--
            (1) in subclause (III), by striking ``or'' at the end;
            (2) by redesignating subclause (IV) as subclause (V); and
            (3) by inserting after subclause (III) the following new 
        subclause:
                                    ``(IV) the President has not met 
                                with the House Advisory Group on 
                                Enforcement or the Senate Advisory 
                                Group on Enforcement, pursuant to 
                                section 104(d)(3), with respect to the 
                                enforcement of existing trade 
                                agreements to which the United States 
                                is a party; or''.
                                 <all>