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]
[S. 2409 Introduced in Senate (IS)]

<DOC>






116th CONGRESS
  1st Session
                                S. 2409

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


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             July 31, 2019

Mr. Graham (for himself and Mr. Manchin) introduced the following bill; 
     which was read twice and referred to the Committee on Finance

_______________________________________________________________________

                                 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 largest importer of goods in 
        the world.
            (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) Trading partners of the United States 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 trading partners 
        of the United States facilitates foreign imports, discourages 
        United States exports, and puts producers, farmers, and workers 
        in the United States 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 trading partners of the United 
        States 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 trading 
        partners of the United States to lower tariffs and eliminate 
        nontariff barriers, to promote efficiency in those markets and 
        enhance opportunities for producers, farmers, and workers in 
        the United States.
            (9) The President should have a wide array of tools to open 
        the markets of trading partners of the United States 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.--The President may take one or more of the actions 
specified in subsection (b) 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 with respect to 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.
    (b) Actions Specified.--The actions specified in 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 with respect 
        to 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) in the case of a determination described in 
                subsection (a)(1), the rate of duty imposed by the 
                foreign country with respect to the good; or
                    (B) in the case of a determination described in 
                subsection (a)(2), 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.
    (c) Factors.--In taking an action specified in 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 foreign country to the 
                United States.
            (5) The level of exports of the good by the foreign 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 foreign 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 foreign 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 foreign country adopted the nontariff 
                barriers.
            (8) Such other factors as the President determines 
        appropriate.
    (d) Role of USTR.--In the case of a determination described in 
subsection (a)(2), the United States Trade Representative, in 
consultation with the Secretary of the 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.
    (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 described in subsection 
                (a)(1) with respect to the good; or
                    (B) applying nontariff barriers described in 
                subsection (a)(2) with respect to the good; 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, CONSULTATION, AND REPORT.

    (a) Negotiations and Agreement.--Before taking any action under 
section 3(b)(1), the President shall provide notice to and consult with 
the Committee on Finance of the Senate and the Committee on Ways and 
Means of the House of Representatives regarding the proposed action.
    (b) Imposition of Duty.--Before taking any action 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 subsection (e), 
(f), or (g) of section 3.
    (d) Report.--
            (1) In general.--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--
                    (A) the implementation of the agreement, including 
                how it is consistent with and does not materially 
                differ from or otherwise affect Federal or State laws;
                    (B) the impact of the agreement on the 
                competitiveness of businesses in the United States; and
                    (C) the impact of the agreement on consumers in the 
                United States.
            (2) Appropriate congressional committees and leadership.--
        In this subsection, 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.

SEC. 5. CONGRESSIONAL DISAPPROVAL OF PRESIDENTIAL IMPOSITION OF RATES 
              OF DUTY ON IMPORTS OF GOODS FROM FOREIGN COUNTRIES.

    (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 relating to that action.
    (b) Disapproval Resolution.--
            (1) 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 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.
            (2) 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) Floor consideration in house of 
                representatives.--
                            (i) Reporting and discharge.--If the 
                        Committee on Ways and Means has not reported a 
                        disapproval resolution within 10 legislative 
                        days after the date of referral, that committee 
                        shall be discharged from further consideration 
                        thereof.
                            (ii) Proceeding to consideration.--
                        Beginning on the third legislative day after 
                        the Committee on Ways and Means reports a 
                        disapproval resolution to the House or has been 
                        discharged from further consideration thereof, 
                        it shall be in order to move to proceed to 
                        consider the disapproval resolution in the 
                        House. All points of order against the motion 
                        are waived. Such a motion shall not be in order 
                        after the House has disposed of a motion to 
                        proceed on the disapproval resolution. The 
                        previous question shall be considered as 
                        ordered on the motion to its adoption without 
                        intervening motion. The motion shall not be 
                        debatable. A motion to reconsider the vote by 
                        which the motion is disposed of shall not be in 
                        order.
                            (iii) Consideration.--The disapproval 
                        resolution shall be considered as read. All 
                        points of order against the disapproval 
                        resolution and against its consideration are 
                        waived. The previous question shall be 
                        considered as ordered on the disapproval 
                        resolution to final passage without intervening 
                        motion except two hours of debate equally 
                        divided and controlled by the sponsor of the 
                        disapproval resolution (or a designee) and an 
                        opponent. A motion to reconsider the vote on 
                        passage of the disapproval resolution shall not 
                        be in order.
                    (D) Floor consideration in the senate.--
                            (i) Reporting and discharge.--If the 
                        Committee on Finance has not reported a 
                        disapproval resolution within 10 session days 
                        after the date of referral of such resolution, 
                        that committee shall be discharged from further 
                        consideration of such resolution and the 
                        disapproval resolution shall be placed on the 
                        appropriate calendar.
                            (ii) Proceeding to consideration.--
                        Notwithstanding Rule XXII of the Standing Rules 
                        of the Senate, it is in order at any time after 
                        the Committee on Finance reports a disapproval 
                        resolution to the Senate or has been discharged 
                        from its consideration (even though a previous 
                        motion to the same effect has been disagreed 
                        to) to move to proceed to the consideration of 
                        the disapproval resolution, and all points of 
                        order against the disapproval resolution (and 
                        against consideration of the disapproval 
                        resolution) are waived. The motion to proceed 
                        is not debatable. The motion is not subject to 
                        a motion to postpone. A motion to reconsider 
                        the vote by which the motion is agreed to or 
                        disagreed to shall not be in order. If a motion 
                        to proceed to the consideration of the 
                        disapproval resolution is agreed to, the 
                        disapproval resolution shall remain the 
                        unfinished business until disposed of.
                            (iii) Consideration.--Debate on a 
                        disapproval resolution, and on all debatable 
                        motions and appeals in connection therewith, 
                        shall be limited to not more than 10 hours, 
                        which shall be divided equally between the 
                        majority and minority leaders or their 
                        designees. A motion to further limit debate is 
                        in order and not debatable. An amendment to, or 
                        a motion to postpone, or a motion to proceed to 
                        the consideration of other business, or a 
                        motion to recommit the disapproval resolution 
                        is not in order.
                            (iv) Vote on passage.--The vote on passage 
                        shall occur immediately following the 
                        conclusion of the debate on the disapproval 
                        resolution and a single quorum call at the 
                        conclusion of the debate, if requested in 
                        accordance with the rules of the Senate.
                            (v) Rulings of the chair on procedure.--
                        Appeals from the decisions of the Chair 
                        relating to the application of the rules of the 
                        Senate, as the case may be, to the procedure 
                        relating to a disapproval resolution shall be 
                        decided without debate.
                            (vi) Consideration of veto messages.--
                        Debate in the Senate of any veto message with 
                        respect to a disapproval resolution, including 
                        all debatable motions and appeals in connection 
                        with such disapproval resolution, shall be 
                        limited to 10 hours, to be equally divided 
                        between, and controlled by, the majority leader 
                        and the minority leader or their designees.
                    (E) Majority required for adoption.--A disapproval 
                resolution shall require an affirmative vote of a 
                majority of the Members, duly chosen and sworn, for 
                adoption.
            (3) Rules relating to senate and house of 
        representatives.--
                    (A) Coordination with action by other house.--If, 
                before the passage by one House of a disapproval 
                resolution of that House, that House receives a 
                disapproval resolution from the other House, then the 
                following procedures shall apply:
                            (i) The disapproval resolution of the other 
                        House shall not be referred to a committee.
                            (ii) With respect to a disapproval 
                        resolution of the House receiving the 
                        legislation--
                                    (I) the procedure in that House 
                                shall be the same as if no disapproval 
                                resolution had been received from the 
                                other House; but
                                    (II) the vote on passage shall be 
                                on the disapproval resolution of the 
                                other House.
                    (B) Treatment of a bill of other house.--If one 
                House fails to introduce a disapproval resolution under 
                this section, the disapproval resolution of the other 
                House shall be entitled to expedited floor procedures 
                under this section.
                    (C) Treatment of companion measures.--If, following 
                passage of a disapproval resolution in the Senate, the 
                Senate then receives a companion measure from the House 
                of Representatives, the companion measure shall not be 
                debatable.
    (c) Rulemaking Power.--This section is enacted by Congress--
            (1) as an exercise of the rulemaking power of the Senate 
        and the House of Representatives, 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 with those rules; and
            (2) with 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.

SEC. 6. SUNSET OF PRESIDENTIAL IMPOSITION OF RATES OF DUTY ON IMPORTS 
              OF GOODS FROM FOREIGN COUNTRIES.

    (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--
                    (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 determines 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 90 days 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).
    (c) Disapproval Resolution.--
            (1) 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 Congress 
        disapproves the request of the President for extension under 
        section 6(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.''.
            (2) Consideration.--
                    (A) In general.--Except as provided in subparagraph 
                (B), the provisions of paragraphs (2) and (3) of 
                section 5(b) apply to consideration of a disapproval 
                resolution.
                    (B) Limitation on consideration.--It is not in 
                order for 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.
            (3) Rulemaking power.--This subsection is enacted by 
        Congress--
                    (A) as an exercise of the rulemaking power of the 
                Senate and the House of Representatives, 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 with those rules; and
                    (B) with 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.
    (d) Rules of Construction.--
            (1) In general.--An action 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. 7. DEFINITIONS.

    In this Act:
            (1) 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.
            (2) 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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