[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[S. 679 Introduced in Senate (IS)]

103d CONGRESS
  1st Session
                                 S. 679

To extend and enhance the operation of the ``Super 301'' provisions of 
             the Trade Act of 1974, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

               March 30 (legislative day, March 3), 1993

  Mr. Riegle introduced the following bill; which was read twice and 
                  referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
To extend and enhance the operation of the ``Super 301'' provisions of 
             the Trade Act of 1974, 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; REFERENCE.

    (a) Short Title.--This Act may be cited as the ``Fair Trade 
Assurances Act of 1993''.
    (b) Reference.--Whenever in this Act an amendment is expressed in 
terms of an amendment to a section, subsection, or other provision, the 
reference shall be considered to be made to a section, subsection, or 
other provision of the Trade Act of 1974.

SEC. 2. SPECIFICATION OF SECTORAL PRIORITY PRACTICES.

    Section 181(a) (19 U.S.C. 2241) is amended--
            (1) by striking out ``and'' at the end of paragraph (1)(B);
            (2) by striking out the period at the end of paragraph 
        (1)(C) and inserting ``;''; and
            (3) by inserting after paragraph (1)(C) the following:
                    ``(D) identify, if for such calendar year the 
                United States merchandise trade balance (excluding 
                crude petroleum imports) was in deficit, each foreign 
                country that--
                            ``(i) accounted for not less than 15 
                        percent of such deficit, and
                            ``(ii) had a global current account surplus 
                        for such year in an amount not less than such 
                        deficit; and
                    ``(E) specify each act, policy, or practice 
                identified under subparagraph (A) that was implemented 
                by a foreign country identified under subparagraph (D) 
                with respect to any goods sector or service sector that 
                accounted for not less than 10 percent of the 
                merchandise trade and current account deficits between 
                the United States and such foreign country during such 
                calendar year.'';
            (4) by striking out ``paragraph (1),'' in paragraph (2) and 
        inserting ``paragraph (1) (A), (B), or (C),''; and
            (5) by striking out ``analysis and estimate'' in paragraph 
        (3) and inserting ``analyses, estimates, identifications, and 
        specifications''.

SEC. 3. PERMANENT STATUS OF ``SUPER 301'' PROGRAM; APPLICATION OF 
              PROGRAM TO SECTORAL PRIORITY PRACTICES.

    (a) In General.--Section 310(a) (19 U.S.C. 2420(a)) is amended--
            (1) by striking out ``calendar year 1989, and also the date 
        in calendar year 1990,'' in paragraph (1) and inserting ``any 
        calendar year'';
            (2) by amending subparagraphs (A) and (B) of paragraph (1) 
        to read as follows:
                    ``(A) priority practices;
                    ``(B) priority foreign countries;''; and
            (3) by amending paragraphs (2) and (3) to read as follows:
            ``(2)(A) For purposes of this section, the term `priority 
        foreign country' means--
                    ``(i) any foreign country identified under section 
                181(a)(1)(D); and
                    ``(ii) any other foreign country that, on the basis 
                of the report required under section 181, satisfies the 
                criteria in subparagraph (B).
            ``(B) In identifying priority foreign countries under 
        subparagraph (A)(ii), the Trade Representative shall take into 
        account--
                    ``(i) the number and pervasiveness of the acts, 
                policies, and practices described in section 
                181(a)(1)(A), and
                    ``(ii) the level of United States exports of goods 
                and services that would be reasonably expected from 
                full implementation of existing trade agreements to 
                which that foreign country is a party, based on the 
                international competitive position and export potential 
                of such products and services.
            ``(3)(A) For purposes of this section, the term `priority 
        practices' means--
                    ``(i) acts, policies, and practices specified under 
                section 181(a)(1)(E); and
                    ``(ii) other major barriers and trade distorting 
                practices, the elimination of which are likely to have 
                the most significant potential to increase United 
                States exports, either directly or through the 
                establishment of a beneficial precedent.
            ``(B) In identifying priority practices under subparagraph 
        (A)(ii) the Trade Representative shall take into account--
                    ``(i) the international competitive position and 
                export potential of United States products and 
                services;
                    ``(ii) circumstances in which the sale of a small 
                quantity of a product or service may be more 
                significant than its value,
                    ``(iii) circumstances in which the practice has the 
                effect of imposing a total or near total barrier to the 
                importation of foreign goods or services, and
                    ``(iv) the measurable medium-term and long-term 
                implications of government procurement commitments to 
                United States exporters.''.
    (b) Conforming Amendments.--Section 310(d) is amended--
            (1) by striking ``in calendar year 1990, and on the 
        anniversary of such date in the succeeding calendar years'' in 
        paragraph (1); and
            (2) by striking ``(a)(1)(A)'' the first place it appears in 
        paragraph (2) and inserting ``(a)(1)(B)''.

SEC. 4. ACTION TO ELIMINATE PRIORITY PRACTICES.

    (a) Mandatory Action.--
            (1) In general.--Section 301(a) (19 U.S.C. 2411(a)) is 
        amended--
                    (A) by redesignating paragraphs (1), (2), and (3) 
                as paragraphs (2), (3), and (4), respectively;
                    (B) by inserting before paragraph (2) (as 
                redesignated by paragraph (1)) the following new 
                paragraph:
            ``(1)(A) If the United States Trade Representative 
        determines under section 304(a)(1) that an act, policy, or 
        practice identified under section 181(a)(1)(E)--
                    ``(i) violates, or is inconsistent with, the 
                provisions of, or otherwise denies benefits to the 
                United States under any trade agreement; or
                    ``(ii) is unjustifiable and burdens or restricts 
                (or threatens to burden or restrict) United States 
                commerce;
        the response of the United States to such act, policy, or 
        practice shall be undertaken in accordance with subparagraph 
        (B).
            ``(B) If the Trade Representative makes a determination 
        referred to in subparagraph (A), the President, within 30 days 
        after the date of the determination--
                    ``(i) shall direct the Trade Representative to 
                implement the action recommended by the Trade 
                Representative under section 304(a)(1)(B) to obtain the 
                elimination of the act, policy, or practice; or
                    ``(ii) shall, if the President considers that there 
                is an alternative (hereafter referred to as the 
                `alternative plan') for obtaining the elimination of 
                such act, policy, or practice and that the alternative 
                plan is preferable to the action recommended by the 
                Trade Representative, transmit to the Congress a 
                document that meets the requirements in subparagraph 
                (D).
            ``(C) An alternative plan submitted under subparagraph 
        (B)(ii) shall provide, in the case of unsatisfactory progress 
        by the priority foreign country in eliminating the priority 
        practice, for the implementation, for such time as may be 
        appropriate, by the President of a restriction, limitation, or 
        other action that is reciprocal in scope and effect to such 
        priority practice.
            ``(D) A document referred to in subparagraph (B)(ii) 
        shall--
                    ``(i) describe the action recommended by the Trade 
                Representative under section 304(a)(1)(B) to eliminate 
                the act, policy, or practice;
                    ``(ii) describe the alternative plan in detail, 
                including--
                            ``(I) any reciprocal limitation, 
                        restriction, or action of the kind referred to 
                        in subparagraph (C) provided for under the 
                        plan; and
                            ``(II) the period of time that will be 
                        required to implement fully the plan and the 
                        specific interim results that should be 
                        achieved under the plan from time-to-time 
                        during that period;
                    ``(iii) describe the number of jobs to be created 
                and the estimated increase in exports resulting from 
                implementation of the plan;
                    ``(iv) cite the legal authorities for taking the 
                measures contemplated by the alternative plan;
                    ``(v) contain, if the President considers that 
                statutory authority is necessary for the implementation 
                of any part of the alternative plan (including the 
                implementation of any reciprocal limitation, 
                restriction, or action described under clause (ii)), 
                appropriate suggested legislative proposals; and
                    ``(vi) state the reasons why the alternative plan 
                is preferable to the taking of the action recommended 
                by the Trade Representative.
            ``(E) If the President transmits an alternative plan to the 
        Congress under subparagraph (B) and a joint resolution 
        described in section 152(a)(1)(C) is not enacted within the 60-
        day period beginning on the date on which the alternative plan 
        was transmitted, the alternative plan shall take effect and the 
        President shall commence implementation of the plan.
            ``(F) If the President transmits an alternative plan to 
        Congress under subparagraph (B) and a joint resolution 
        described in section 152(a)(1)(C) is enacted within the 60-day 
        period beginning on the date on which the alternative plan was 
        transmitted, the alternative plan shall not take effect and the 
        President shall direct the Trade Representative to implement 
        the action recommended by the Trade Representative under 
        section 304(a)(1)(B) to obtain the elimination of the priority 
        foreign practice.''.
            (2) Conforming amendments.--Subparagraph (B) of section 
        301(a)(2) (as redesignated by paragraph (1)(A)) is amended--
                    (A) by striking out ``foreign country--'' and 
                inserting ``foreign country (other than a foreign 
                country to which section 181(a)(1)(E) applies)--''; and
                    (B) by inserting ``(or threatens to burden or 
                restrict)'' after ``restricts'' in clause (ii).
    (b) Discretionary Action.--Section 301(b)(1) is amended by 
inserting ``(or threatens to burden or restrict)'' after ``restricts''.
    (c) Definitions.--Section 301(d) is amended by adding at the end 
the following new paragraph:
            ``(10) An act, policy, or practice threatens to burden or 
        restrict United States commerce if the act, policy, or practice 
        does not currently burden or restrict United States commerce, 
        but, if not corrected, is reasonably expected to burden or 
        restrict United States commerce.''.

SEC. 5. INITIATION OF INVESTIGATIONS UPON RESOLUTION OF CONGRESSIONAL 
              COMMITTEES.

    Section 302(b) is amended by adding at the end the following new 
paragraph:
            ``(3) Upon the adoption by either the Committee on Ways and 
        Means of the House of Representatives or the Committee on 
        Finance of the Senate of a resolution that--
                    ``(A) describes an act, policy, or practice of the 
                foreign country; and
                    ``(B) states that it is the opinion of the 
                Committee that such act, policy, or practice is an act, 
                policy, or practice that is described in section 301(a) 
                (1)(A) or (2)(B);
        the Trade Representative shall initiate an investigation under 
        this chapter to determine whether the matter is actionable 
        under section 301.''.

SEC. 6. CONFORMING AMENDMENTS.

    (a) Actions by United States Trade Representative.--Section 301, as 
amended by section 104, is amended--
            (1) by striking out that part of subsection (a)(3) (as 
        redesignated by section 104(a)(1)(A)) that precedes 
        subparagraph (A) and inserting ``The President is not required 
        to take action under paragraph (1)(B) (i) or (ii) and the Trade 
        Representative is not required to take action under paragraph 
        (2) in any case in which--'';
            (2) by striking out ``paragraph (1)'' in subsection (a)(4) 
        (as redesignated by section 104(a)(1)(A)) and inserting 
        ``paragraph (1) (B)(i) or (F) or paragraph (2)''; and
            (3) by striking out ``subsection (a) or (b)'' each place it 
        appears in paragraphs (1), (2)(A), (3), and (5) of subsection 
        (c) and inserting ``paragraph (1)(B)(i), (1)(F), or (2) of 
        subsection (a) or subsection (b)''.
    (b) Determinations by United States Trade Representative.--Section 
304(a)(1) (19 U.S.C. 2414(a)(1)) is amended--
            (1) by striking out ``(a)(1)(B) or'' in subparagraph 
        (A)(ii) and inserting ``(a) (1)(A) or (2)(B) or subsection''; 
        and
            (2) by striking out subparagraph (B) and inserting the 
        following:
                    ``(B) if the determination under subparagraph (A) 
                is affirmative with respect to a practice described in 
                section 301(a)(1)(A), determine, and submit to the 
                President, a recommendation for action by the Trade 
                Representative under section 301(c) to obtain the 
                elimination of such practice; or
                    ``(C) if the determination under subparagraph (A) 
                (other than with respect to an action described in 
                section 301(a)(1)(A)) is affirmative, determine what 
                action, if any, the Trade Representative should take 
                under subsection (a)(2) or (b) of section 301.''.
    (c) Implementation of Actions.--Section 305 (19 U.S.C. 2414) is 
amended--
            (1) by amending paragraph (1) of subsection (a) to read as 
        follows:
            ``(1) Except as provided in paragraph (2), the Trade 
        Representative shall--
                    ``(A) implement the action directed by the 
                President under subparagraph (B)(i) or (F) of section 
                301(a)(1) by no later than the date that is 30 days 
                after the date such direction is received; and
                    ``(B) implement the action the Trade Representative 
                determines under section 304(a)(1)(C) to take under 
                section 301, subject to the specific direction, if any, 
                of the President regarding any such action, by no later 
                than the date which is 30 days after the date on which 
                such determination is made.'';
            (2) by striking out ``section 301'' in subsection (a)(2)(A) 
        and inserting ``paragraph (1)(B), (1)(F), or (2) of section 
        301(a) or section 301(b)'';
            (3) by inserting ``or (3)'' after ``302(b)(1)'' in 
        subsection (a)(2)(A)(i)(II); and
            (4) by striking out ``section 301'' in subsection (b)(1) 
        and inserting ``section 301(b)''.
    (d) Monitoring of Foreign Compliance.--Section 306(a) (19 U.S.C. 
2416(a)) is amended--
            (1) by striking out ``section 301(a)(2)(B)'' and inserting 
        ``section 301(a)(3)(B)''; and
            (2) by striking out ``subsection (a)(1)(B)'' and inserting 
        ``subsection (a) (1)(A) or (2)(B)''.
    (e) Modification and Termination of Actions.--Section 307(a)(1)(A) 
(19 U.S.C. 2417(a)(1)(A)) is amended by striking out ``301(a)(2)'' and 
inserting ``301(a)(3)''.
    (f) Resolutions Disapproving Certain Actions.--Section 152(a)(1) 
(19 U.S.C. 2192(a)(1)) is amended--
            (1) by striking out ``and'' at the end of subparagraph (A);
            (2) by striking out the period at the end of subparagraph 
        (B) and inserting ``; and ''; and
            (3) by adding at the end the following new subparagraph:
            ``(C) a joint resolution of the two Houses of Congress, the 
        matter after the resolving clause of which is as follows: `That 
        the Congress does not approve the alternative plan transmitted 
        under section 301(a)(1)(B)(ii) of the Trade Act of 1974 to the 
        Congress on         .', the blank space being filled with the 
        appropriate date.''.
    (g) Special Rules Relating to Congressional Procedures.--Section 
154 is amended--
            (1) by inserting ``301(a)(1)(B)(ii),'' after ``203(b),'' in 
        subsection (a); and
            (2) by inserting ``, and for purposes of section 301(a)(1) 
        (E) and (F), the 60-day period referred to in such section,'' 
        after ``such sections'' in subsection (b).

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