Title: United States Reciprocal Trade Act
Policy area: Foreign Trade and International Finance

Summary:
United States Reciprocal Trade Act
This bill allows the President, in certain circumstances, to (1) negotiate with a foreign country for tariff reductions on exported U.S. goods, or (2) impose additional duties on imported goods. Specifically, the President may take these actions if it is determined that the country (1) when importing a good from the United States, applies a higher rate of duty on that good than the rate imposed by the United States when imported from that country; or (2) similarly imposes other, nontariff trade restrictions on that good.
The President must terminate a rate of duty increase under this bill if the country no longer applies such higher rates or nontariff trade restrictions, or if the higher rate is no longer in the interest of the United States.
Congress may nullify a rate of duty increase implemented under this bill through a joint resolution.
This bill is effective for three years, subject to one three-year renewal.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 764 Introduced in House (IH)]

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116th CONGRESS
  1st Session
                                H. R. 764

    To authorize the President to take certain actions relating to 
               reciprocal trade, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            January 24, 2019

  Mr. Duffy (for himself, Mr. Aderholt, Mr. Collins of New York, Mr. 
Cook, Mr. Diaz-Balart, Mr. Gaetz, Mr. Gibbs, Mr. Kelly of Pennsylvania, 
 Mr. Long, Mr. McKinley, Mrs. Miller, Mr. Sensenbrenner, Mr. Stauber, 
   Mr. Hunter, Mr. Crawford, Mr. King of New York, Mr. Burgess, Mr. 
   Palazzo, and Mr. Rouzer) 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 authorize the President to take certain actions relating to 
               reciprocal trade, 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.

    This Act may be cited as the ``United States Reciprocal Trade 
Act''.

SEC. 2. FINDINGS.

    Congress finds the following:
            (1) The United States maintains an open market for goods, 
        with relatively low tariffs, and has long encouraged trading 
        partners, both bilaterally and in multilateral fora, to 
        liberalize their markets.
            (2) The United States is the world's largest importer of 
        goods.
            (3) Trading partners of the United States in many instances 
        impose significantly higher tariffs on United States goods than 
        the United States imposes on the same or similar goods imported 
        from those same countries.
            (4) United States trading partners in many instances impose 
        significant nontariff barriers that greatly undermine the value 
        of negotiated tariff concessions.
            (5) The lack of reciprocity in tariff levels and 
        disproportionate use of nontariff barriers by United States 
        trading partners facilitates foreign imports, discourages 
        United States exports, and puts United States producers, 
        farmers, and workers at a competitive disadvantage.
            (6) The lack of reciprocity in tariff levels and nontariff 
        barriers contributes to the large and growing United States 
        trade deficit in goods, which is a drag on economic growth and 
        undermines economic prosperity.
            (7) To date a number of United States trading partners have 
        been unwilling, including in multilateral negotiations, to 
        reduce tariffs and eliminate nontariff barriers applied to 
        United States exports.
            (8) The United States should seek action by United States 
        trading partners to lower tariffs and eliminate nontariff 
        barriers, to promote efficiency in those markets and enhance 
        opportunities for United States producers, farmers, and 
        workers.
            (9) The President should have a wide array of tools to open 
        the markets of United States trading partners and encourage 
        participation in negotiations to liberalize trade in goods on a 
        fair and reciprocal basis, including the authority to adjust 
        tariff rates to reciprocal levels.

SEC. 3. AUTHORITY TO TAKE CERTAIN ACTIONS RELATING TO RECIPROCAL TRADE.

    (a) In General.--If the President determines that--
            (1) the rate of duty imposed by a foreign country with 
        respect to a particular good, when imported from the United 
        States, is significantly higher than the rate of duty imposed 
        by the United States on that good, when imported from that 
        country, or
            (2) the nontariff barriers applied by a foreign country 
        with respect to a particular good, when imported from the 
        United States, impose significantly higher burdens, alone or in 
        combination with any tariffs imposed by that country on that 
        good, than the burdens of the nontariff barriers applied by the 
        United States with respect to that good, alone or in 
        combination with any tariffs imposed by the United States on 
        that good, when imported from that country,
the President may take one or more of the actions authorized under 
subsection (b).
    (b) Actions Authorized.--The actions authorized under this 
subsection are the following:
            (1) To negotiate and seek to enter into an agreement with 
        the foreign country that commits the country to reduce the rate 
        of duty or reduce or eliminate nontariff barriers on the good 
        that is the subject of the determination under subsection (a).
            (2) To impose a rate of duty on imports of the good that is 
        equal to--
                    (A) the rate of duty imposed by the foreign country 
                with respect to the good, in the case of a 
                determination described in subsection (a)(1); or
                    (B) the effective rate of duty of the nontariff 
                barriers applied by the foreign country with respect to 
                the good, alone or in combination with any tariffs 
                imposed by that country on that good, in the case of a 
                determination described in subsection (a)(2).
    (c) Factors.--In taking an action authorized under subsection (b), 
the President shall consider the following factors:
            (1) The tariff classification of the good by the United 
        States and the tariff classification of the good by the foreign 
        country.
            (2) The rate of duty applied by the United States with 
        respect to the good and the rate of duty applied by the foreign 
        country with respect to the good.
            (3) The physical characteristics of the good.
            (4) The end uses and existence of a competitive 
        relationship between the good--
                    (A) as exported from the United States to the 
                foreign country; and
                    (B) as imported from the country to the United 
                States.
            (5) The level of exports of the good by the country to the 
        United States and to other countries.
            (6) In the case of a determination described in subsection 
        (a)(1), the extent to which the rate of duty applied by the 
        foreign country with respect to the good is impeding or 
        distorting trade.
            (7) In the case of a determination described in subsection 
        (a)(2)--
                    (A) the extent of the nontariff barriers applied by 
                the foreign country with respect to the good and the 
                extent of the nontariff barriers applied by the United 
                States with respect to the good;
                    (B) the extent to which the nontariff barriers 
                applied by the country with respect to the good, alone 
                or in combination with any tariffs imposed by that 
                country on that good, are impeding or distorting trade;
                    (C) the identified purpose of the nontariff 
                barriers applied by the country with respect to the 
                good, if any, and the extent to which the nontariff 
                barriers are more restrictive than necessary to meet 
                that purpose; and
                    (D) the degree of transparency of the process by 
                which the country adopted the nontariff barriers.
            (8) Other factors, as the President determines appropriate.
    (d) Role of USTR.--The United States Trade Representative, in 
consultation with the Secretary of Treasury, the Secretary of Commerce, 
and the heads of other relevant Federal agencies, shall advise the 
President in determining the effective rate of duty imposed by the 
nontariff barriers applied by a foreign country with respect to a good, 
alone or in combination with any tariffs imposed by that country on 
that good, in the case of a determination described in subsection 
(a)(2).
    (e) Lower Rate of Duty.--The President may impose a rate of duty on 
imports of a good from a foreign country that is lower than the rate of 
duty described in subsection (b)(2)(A) or lower than the effective rate 
of duty described in subsection (b)(2)(B), as the case may be, if the 
President determines that application of such lower rate of duty is 
necessary and appropriate.
    (f) Higher Rate of Duty.--If the President imposes a rate of duty 
on imports of a good from a foreign country under subsection (b)(2), 
and the country further increases its rate of duty on imports of the 
good from the United States, the President may further increase the 
rate of duty on imports of the good from the country to a rate that is 
equal to the rate of duty applied by that country.
    (g) Termination.--The President shall terminate the imposition of 
any increase in the rate of duty on imports of a good from a foreign 
country under subsection (b)(2) effective on the date on which the 
President determines that--
            (1) the foreign country is no longer--
                    (A) imposing a rate of duty with respect to the 
                good, as described in subsection (a)(1); or
                    (B) applying nontariff barriers with respect to the 
                good, as described in subsection (a)(2); or
            (2) continued imposition of the increased rate of duty on 
        imports of the good from the foreign country is not in the 
        economic or public interest of the United States.

SEC. 4. NOTICE AND CONSULTATION.

    (a) In General.--Before taking any action authorized under section 
3(b)(1), the President shall provide notice to and consult with the 
Committee on Ways and Means of the House of Representatives and the 
Committee on Finance of the Senate regarding the proposed action.
    (b) Notice.--Before taking any action authorized under section 
3(b)(2), the President shall--
            (1) not less than 45 days before the date on which 
        imposition of an increased rate of duty on imports of a good 
        from a foreign country is to take effect, publish notice in the 
        Federal Register of, and allow for public comment on, the 
        proposed imposition and level of such increased rate of duty; 
        and
            (2) seek advice regarding the proposed action from the 
        advisory committees established under section 135 of the Trade 
        Act of 1974 (19 U.S.C. 2155).
    (c) Additional Notice.--The President shall promptly publish in the 
Federal Register notice of any action taken pursuant to section 3(f) or 
3(g).

SEC. 5. CONGRESSIONAL DISAPPROVAL OF PRESIDENTIAL IMPOSITION OF RATES 
              OF DUTY ON IMPORTS OF GOODS FROM FOREIGN COUNTRIES UNDER 
              SECTION 3(B)(2); DISAPPROVAL RESOLUTION.

    (a) In General.--An action taken by the President under section 
3(b)(2) to impose a rate of duty on imports of a good from a foreign 
country shall cease to have force and effect upon the enactment of a 
disapproval resolution, provided for in subsection (b), relating to 
that action.
    (b) Congressional Rulemaking Power; Disapproval Resolution.--
            (1) In general.--This section is enacted by the Congress--
                    (A) 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, but applicable only with respect 
                to the procedures to be followed in that House in the 
                case of disapproval resolutions and such procedures 
                supersede other rules only to the extent that they are 
                inconsistent therewith; and
                    (B) with the full recognition of the constitutional 
                right of either House to change the rules (so far as 
                relating to the procedure of that House) at any time, 
                in the same manner, and to the same extent as any other 
                rule of that House.
            (2) Disapproval resolution.--For purposes of this section, 
        the term ``disapproval resolution'' means only a joint 
        resolution of either House of Congress the matter after the 
        resolving clause of which is as follows: ``That the Congress 
        disapproves the action taken under section 3(b)(2) of the 
        United States Reciprocal Trade Act with respect to the 
        imposition of a rate of duty on imports of __ from __ under 
        such section 3(b)(2).'', the first blank space being filled 
        with a description of the good with respect to which the duty 
        is imposed under section 3(b)(2) and the second blank being 
        filled with the name of the foreign country from which the good 
        is imported into the United States.
            (3) Consideration.--
                    (A) Introduction.--All disapproval resolutions 
                introduced in the House of Representatives shall be 
                referred to the Committee on Ways and Means and all 
                disapproval resolutions introduced in the Senate shall 
                be referred to the Committee on Finance.
                    (B) Amendments prohibited; motions to suspend 
                application of this subparagraph prohibited.--No 
                amendment to a disapproval resolution shall be in order 
                in either the House of Representatives or the Senate, 
                and no motion to suspend the application of this 
                subparagraph shall be in order in either House nor 
                shall it be in order in either House for the Presiding 
                Officer to entertain a request to suspend the 
                application of this subparagraph by unanimous consent.
                    (C) Majority required for adoption.--A disapproval 
                resolution considered under this subsection shall 
                require an affirmative vote of two-thirds of the 
                Members, duly chosen and sworn, for adoption.

SEC. 6. REPORT.

    Before entering into an agreement with a foreign country under 
section 3(b)(1), the United States Trade Representative shall submit to 
the appropriate congressional committees and leadership a report that 
describes--
            (1) the implementation of the agreement, including how it 
        is consistent with and does not materially differ from or 
        otherwise affect Federal or State laws or regulations;
            (2) the impact on the competitiveness of United States 
        businesses; and
            (3) the impact on United States consumers.

SEC. 7. SUNSET OF PRESIDENTIAL IMPOSITION OF RATES OF DUTY ON IMPORTS 
              OF GOODS FROM FOREIGN COUNTRIES UNDER SECTION 3(B)(2) BY 
              DISAPPROVAL RESOLUTION.

    (a) In General.--The authority of the President to take an action 
under section 3(b)(2) to impose a rate of duty on imports of a good 
from a foreign country--
            (1) shall be effective for the period ending on the date 
        that is three years after the date of the enactment of this 
        Act; and
            (2) shall be extended for an additional period of three 
        years if (and only if)--
                    (A) the President requests such extension under 
                subsection (b); and
                    (B) a disapproval resolution is not enacted into 
                law as provided for under subsection (c).
    (b) Report to Congress.--If the President is of the opinion that 
the authority of the President to take an action under section 3(b)(2) 
to impose a rate of duty on imports of a good from a foreign country 
should be extended for the additional period described in subsection 
(a)(2), the President shall submit to Congress, not later than the date 
that is three months before the end of the period described in 
subsection (a)(1), a written report that contains a request for such 
extension, together with a description of all actions taken under 
section 3(b)(2) to date.
    (c) Disapproval Resolution.--
            (1) Congressional rulemaking power.--This section is 
        enacted by the Congress--
                    (A) 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, but applicable only with respect 
                to the procedures to be followed in that House in the 
                case of disapproval resolutions and such procedures 
                supersede other rules only to the extent that they are 
                inconsistent therewith; and
                    (B) with the full recognition of the constitutional 
                right of either House to change the rules (so far as 
                relating to the procedure of that House) at any time, 
                in the same manner, and to the same extent as any other 
                rule of that House.
            (2) Disapproval resolution.--For purposes of subsection 
        (a), the term ``disapproval resolution'' means only a joint 
        resolution of either House of Congress the matter after the 
        resolving clause of which is as follows: ``That the Congress 
        disapproves the request of the President for the extension, 
        under section 7(a)(2)(A) of the United States Reciprocal Trade 
        Act, of the authority of the President to take an action under 
        section 3(b)(2) of such Act to impose a rate of duty on imports 
        of a good from a foreign country after the period ending on the 
        date that is three years after the date of the enactment of 
        such Act.''.
            (3) Introduction; referral.--A disapproval resolution--
                    (A) may be introduced in either House of Congress 
                by any member of such House; and
                    (B) shall be referred, in the House of 
                Representatives, to the Committee on Ways and Means 
                and, in addition, to the Committee on Rules.
            (4) Floor consideration.--The provisions of subsections (d) 
        and (e) of section 152 of the Trade Act of 1974 (19 U.S.C. 
        2192) (relating to the floor consideration of certain 
        resolutions in the House and Senate) apply to a disapproval 
        resolution.
            (5) Limitations on consideration.--It is not in order for--
                    (A) the House of Representatives to consider any 
                disapproval resolution not reported by the Committee on 
                Ways and Means and, in addition, by the Committee on 
                Rules;
                    (B) the Senate to consider any disapproval 
                resolution not reported by the Committee on Finance; or
                    (C) either House of Congress to consider a 
                disapproval resolution after the date that is three 
                years after the date of the enactment of this Act.
    (d) Rules of Construction.--
            (1) In general.--An action authorized under section 3(b)(2) 
        to impose a rate of duty on imports of a good from a foreign 
        country that is taken before the end of the period described in 
        subsection (a)(1) or the end of the period described in 
        subsection (a)(2) shall remain in effect after the end of such 
        respective period.
            (2) Additional authorities.--The President may exercise the 
        authorities of subsections (e), (f), and (g) of section 3 with 
        respect to an action described in paragraph (1) after the end 
        of the period described in such paragraph that is applicable to 
        such action.

SEC. 8. DEFINITIONS.

    In this Act:
            (1) Appropriate congressional committees and leadership.--
        The term ``appropriate congressional committees and 
        leadership'' means--
                    (A) the Committee on Ways and Means of the House of 
                Representatives and the Committee on Finance of the 
                Senate; and
                    (B) 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.
            (2) Nontariff barrier.--The term ``nontariff barrier'' 
        includes any government-imposed measure or policy, other than a 
        customs duty, that restricts, prevents, or impedes 
        international trade in goods, including import policies, 
        sanitary and phytosanitary measures, technical barriers to 
        trade, government procurement, export subsidies, lack of 
        intellectual property protection, digital trade barriers, and 
        government-tolerated anticompetitive conduct of state-owned or 
        private firms.
            (3) Rate of duty.--The term ``rate of duty'' means the rate 
        of customs duty applied on imports of a good, but does not 
        include an antidumping or countervailing duty or a duty applied 
        under a preferential tariff arrangement.
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