[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[S. 730 Introduced in Senate (IS)]

103d CONGRESS
  1st Session
                                 S. 730

   To ensure fair and free trade of certain agricultural commodities 
     between the United States and Canada, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                April 1 (legislative day, March 3), 1993

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

_______________________________________________________________________

                                 A BILL


 
   To ensure fair and free trade of certain agricultural commodities 
     between the United States and Canada, 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-Canada Fair Grain 
Trade Act of 1993''.

SEC. 2. FINDINGS.

    The Congress finds that--
            (1) as a result of unfair and incomplete provisions in the 
        United States-Canada Free-Trade Agreement--
                    (A) Canadian exports of durum wheat, spring wheat, 
                and barley have increased beyond the level such exports 
                can be absorbed into the United States market;
                    (B) these exports have depressed domestic grain 
                prices, causing severe financial losses to American 
                farmers and increasing the costs and difficulties of 
                implementing domestic farmer support programs; and
                    (C) Canadian grain exports continue to increase 
                without bounds, increasing the damage to United States 
                farmers each year;
            (2) the Congress approved the United States-Canada Free-
        Trade Agreement subject to--
                    (A) the statement in the Statement of 
                Administrative Action that the United States would 
                ``pursue consultations with Canada regarding the price 
                setting policy of the CWB (Canadian Wheat Board) as it 
                affects goods exported to the United States....directed 
                toward establishing a method to determine the price at 
                which the CWB is selling agricultural goods to the 
                United States and the CWB's acquisition price for those 
                goods''; and
                    (B) the provision of the implementing legislation 
                requiring that ``the President will enter into 
                immediate consultation with the Government of Canada to 
                obtain the exclusion from the transport rates 
                established under Canada's Western Grain Transportation 
                Act of agricultural goods that originate in Canada and 
                are shipped via east coast ports for consumption in the 
                United States,'',
        yet to date there has been no progress on these consultations; 
        and
            (3) the failure of the United States successfully to pursue 
        the consultations described in subsection (b) led to a flawed 
        binational panel decision that renders meaningless the plain 
        language of Article 701(3) of the United States-Canada Free-
        Trade Agreement, which states that ``Neither Party, including 
        any public entity that it establishes or maintains, shall sell 
        agricultural goods for export to the territory of the other 
        Party at a price below the acquisition price of the goods plus 
        any storage, handling or other cost incurred by it with respect 
        to those goods.''.

                   TITLE I--GRAIN TRADE NEGOTIATIONS

SEC. 101. PRICE TRANSPARENCY.

    (a) Negotiations.--The President shall immediately pursue 
negotiations with the Government of Canada to establish a method to 
determine the price at which the Canadian Wheat Board is selling 
agricultural goods to the United States and the Board's acquisition 
price for such goods, as required under the fourth paragraph of chapter 
7(B,1,c) of the Statement of Administrative Action accompanying the 
United States-Canada Free-Trade Agreement Implementation Act of 1988.
    (b) Action Upon Failure.--If, within 120 days after the date of the 
enactment of this Act, negotiations under subsection (a) fail--
            (1) to establish the method of determining prices under 
        subsection (a), or
            (2) to establish procedures for obtaining the data 
        necessary to implement such method,
Canada shall be treated as in violation of Article 2101 of the United 
States-Canada Free-Trade Agreement and all imports of Canadian grain to 
the United States shall be suspended until the President certifies that 
successful negotiations under subsection (a) have been completed.

SEC. 102. RAIL TRANSPORTATION SUBSIDY.

    (a) Negotiations.--The President shall immediately pursue the 
consultations with the Government of Canada described in section 
304(a)(2) of the United States-Canada Free-Trade Agreement 
Implementation Act of 1988, relating to the exclusion from the 
transport rates established under Canada's Western Grain Transportation 
Act of agricultural goods that originate in Canada and are shipped via 
east coast ports for consumption in the United States.
    (b) Action Upon Failure.--If, within 120 days after the date of the 
enactment of this Act, negotiations under subsection (a) fail to obtain 
the exclusion described in subsection (a), all imports of Canadian 
grain receiving the benefits of the transport rates shall be suspended 
until the President certifies that successful negotiations under 
subsection (a) to terminate such benefits have been completed.

SEC. 103. ACQUISITION PRICE OF GRAIN.

    (a) Negotiations.--The President shall immediately pursue 
negotiations with the Government of Canada to clarify the meaning of 
the term ``acquisition price'' in Article 701(3) of the United States-
Canada Free-Trade Agreement (and any other provision accompanying such 
agreement) so that such term includes--
            (1) the value of any transportation subsidy applied to 
        grain entering the United States;
            (2) all payments to producers by the Canadian Wheat Board 
        or any government agency; and
            (3) any other payments or subsidy incurred by the Canadian 
        Wheat Board, any government agency, or any private interest in 
        the acquisition, handling, storage, and transportation of the 
        grain.
    (b) Action Upon Failure.--If, within 120 days after the date of the 
enactment of this Act, negotiations under subsection (a) fail to 
clarify the meaning of the term ``acquisition price'', all imports of 
Canadian grain shall be suspended until the President certifies that 
successful negotiations under subsection (a) have been completed.

SEC. 104. ASSISTANCE IN COUNTERVAILING DUTY CASES.

    Each Federal agency (other than the United States International 
Trade Commission) shall provide full technical assistance and support 
to any petitioner in any countervailing duty or antidumping action 
under title VII of the Tariff Act of 1930 (19 U.S.C. 1671 et seq.) with 
respect to the subsidies provided by Canada in connection with the 
exportation of wheat or barley to the United States.

                 TITLE II--AGRICULTURAL TRADE PROGRAMS

SEC. 201. USE OF EXPORT ENHANCEMENT PROGRAM TO PROMOTE GRAIN EXPORTS.

    Section 301(b) of the Agricultural Trade Act of 1978 (7 U.S.C. 
5651(b)) is amended by adding at the end the following new paragraph:
            ``(9) Promotion of grain exports.--
                    ``(A) In general.--The Secretary shall aggressively 
                use the program established under this section to 
                permit exporters, users, processors, and foreign 
                purchasers of grains produced in the United States to 
                compete effectively with exporters, users, processors, 
                and foreign purchasers of grains produced in Canada, 
                taking into account--
                            ``(i) the transportation subsidies provided 
                        by the Government of Canada to promote grain 
                        sales to Mexico; and
                            ``(ii) the sale of wheat in all foreign 
                        markets by the Canadian Wheat Board at a price 
                        that is less than the full acquisition cost for 
                        the wheat.
                    ``(B) Duration.--The requirements of subparagraph 
                (A) shall apply--
                            ``(i) to counteract the transportation 
                        subsidies described in subparagraph (A)(i), 
                        until an agreement is concluded with the 
                        Government of Canada to exclude agricultural 
                        goods from transport rates as described in 
                        section 304(a)(2) of the United States-Canada 
                        Free-Trade Agreement Implementation Act of 1988 
                        (19 U.S.C. 2112 note); and
                            ``(ii) to counteract the sale of wheat by 
                        the Canadian Wheat Board described in 
                        subparagraph (A)(ii), until an agreement is 
                        concluded with the Government of Canada to 
                        ensure the sale of wheat by the Canadian Wheat 
                        Board at a price that is no less than the full 
                        acquisition cost for the wheat.''.

SEC. 202. AGRICULTURAL EXPORT PROGRAM PROTECTION.

    (a) In General.--Title XV of the Food, Agriculture, Conservation, 
and Trade Act of 1990 (Public Law 101-624) is amended by adding at the 
end the following new subtitle:

          ``Subtitle G--Agricultural Export Program Protection

``SEC. 1581. DEFINITIONS.

    ``As used in this subtitle:
            ``(1) Agricultural trade program.--The term `agricultural 
        trade program' means an export promotion, export credit, export 
        credit guarantee, export bonus, or other export or 
        international food aid program carried out through, or 
        administered by, the Commodity Credit Corporation, including 
        such a program carried out under--
                    ``(A) the Agricultural Trade Act of 1978 (7 U.S.C. 
                5601 et seq.)--
                            ``(i) including the export enhancement 
                        program established by section 301 of such Act 
                        (7 U.S.C. 5651); but
                            ``(ii) excluding the market promotion 
                        program established by section 203 of such Act 
                        (7 U.S.C. 5623);
                    ``(B) the Agricultural Trade Development and 
                Assistance Act of 1954 (7 U.S.C. 1691 et seq.);
                    ``(C) section 416 of the Agricultural Act of 1949 
                (7 U.S.C. 1431); or
                    ``(D) section 5 of the Commodity Credit Corporation 
                Charter Act (15 U.S.C. 714c).
            ``(2) Covered foreign commodity.--The term `covered foreign 
        commodity' means wheat, feed grains, or soybeans produced in a 
        foreign country that is imported into the customs territory of 
        the United States.
            ``(3) Entry.--The term `entry' means the entry into, or the 
        withdrawal from warehouse for consumption in, the customs 
        territory of the United States.
            ``(4) Person.--The term `person' includes an exporter, an 
        assignee, and a participant in an agricultural trade program.
            ``(5) Secretary.--The term `Secretary' means the Secretary 
        of Agriculture.
            ``(6) United states agricultural commodity.--The term 
        `United States agricultural commodity' has the same meaning 
        given the term in section 102(7) of the Agricultural Trade Act 
        of 1978 (7 U.S.C. 5602(7)).

``SEC. 1582. MONITORING OF DOMESTIC USES MADE OF CERTAIN FOREIGN 
              COMMODITIES.

    ``(a) In General.--
            ``(1) End-use certificate.--An end-use certificate that 
        meets the requirements of subsection (b) shall be included in 
        the documentation covering the entry of any covered foreign 
        commodity.
            ``(2) Quarterly reports.--A consignee of a covered foreign 
        commodity (including a secondary consignee of a covered foreign 
        commodity and a consignee of a covered foreign commodity that 
        has been commingled with a commodity produced in the United 
        States) shall submit to the Secretary a quarterly report that 
        certifies--
                    ``(A) what percentage of the covered foreign 
                commodity that is subject to an end-use certificate was 
                used by the consignee during the quarter; and
                    ``(B)(i) that the covered foreign commodity 
                referred to in paragraph (1) was used by the consignee 
                for the purpose stated in the end-use certificate; or
                    ``(ii) if ownership of the covered foreign 
                commodity is transferred, the name and address and 
                other information, as determined by the Secretary, of 
                the entity (or consignee) to whom it is transferred.
    ``(b) End-Use Certificate and Quarterly Report Content.--The end-
use certificates and quarterly reports required under subsection (a) 
shall be in such form, and require such information, as the Secretary 
considers necessary or appropriate to carry out this section. At a 
minimum, the Secretary shall require that end-use certificates and 
quarterly reports indicate--
            ``(1) in the case of the end-use certificate--
                    ``(A) the name and address of the importer of 
                record of the covered foreign commodity that is subject 
                to the certificate;
                    ``(B) the name and address of the consignee of the 
                covered foreign commodity;
                    ``(C) the identification of the country of origin 
                of the covered foreign commodity;
                    ``(D) a description by class and quantity of the 
                covered foreign commodity;
                    ``(E) the specification of the purpose for which 
                the consignee will use the covered foreign commodity; 
                and
                    ``(F) the identification of the transporter of the 
                covered foreign commodity from the port of entry to the 
                processing facility of the consignee; and
            ``(2) in the case of the quarterly report--
                    ``(A) the information referred to in subparagraphs 
                (A) and (B) of paragraph (1);
                    ``(B) the identification of the end-use 
                certificates currently held by the consignee;
                    ``(C) a statement of the quantity of the covered 
                foreign commodity that is the subject of each of the 
                end-use certificates identified under subparagraph (B) 
                that was used during the quarter;
                    ``(D) a statement of the use made during the 
                quarter by the consignee of each quantity referred to 
                in subparagraph (C);
                    ``(E) a statement of the quantity of the covered 
                foreign commodity that was exported by the consignee 
                during the quarter;
                    ``(F) a statement of the quantity of the covered 
                foreign commodity that was commingled with commodities 
                produced in the United States and the disposition of 
                the commingled commodities; and
                    ``(G) a statement of the quantity of any covered 
                foreign commodity that is transferred to a subsequent 
                consignee, the name and address of the consignee, and 
                the change in end-use.
    ``(c) Sales Price.--The Secretary may require the importer or the 
first consignee of a covered foreign commodity to report to the 
Secretary the sales price of a covered foreign commodity that is 
subject to an end-use certificate issued under this section if the 
Secretary considers the sales price necessary to facilitate enforcement 
of United States trade laws and international agreements.
    ``(d) Confidentiality.--In carrying out this section, the Secretary 
shall take such actions as are necessary to ensure the confidentiality 
and privacy of purchasers of covered foreign commodities.
    ``(e) Entry Prohibited Unless End-Use Certificate Presented.--The 
Commissioner of Customs may not permit the entry of a covered foreign 
commodity unless the importer of record presents at the time of entry 
of the covered foreign commodity an end-use certificate that complies 
with the applicable requirements of this section.
    ``(f) Penalties.--
            ``(1) Customs penalties.--End-use certificates required 
        under this section shall be treated as any other customs 
        documentation for purposes of applying the customs laws that 
        prohibit the entry, or the attempt to enter, merchandise by 
        fraud, gross negligence, or negligence.
            ``(2) Civil penalties.--Any person who knowingly violates 
        any requirement prescribed by the Secretary to carry out this 
        section is punishable by a civil penalty in an amount not to 
        exceed $10,000.
    ``(g) Regulations.--The Secretary shall prescribe such regulations 
as are necessary to carry out this section, including regulations 
regarding the preparation and submission of the quarterly reports 
required under subsection (a)(2).

``SEC. 1583. COMPLIANCE PROVISIONS.

    ``Subsections (b) and (c) of section 402 of the Agricultural Trade 
Act of 1978 (7 U.S.C. 5662) shall apply to the programs authorized 
under this subtitle.

``SEC. 1584. SUSPENSION OR DEBARMENT FOR USE OF FOREIGN AGRICULTURAL 
              COMMODITIES IN CERTAIN AGRICULTURAL TRADE PROGRAMS.

    ``(a) Hearing.--The Commodity Credit Corporation shall provide a 
person with an opportunity for a hearing before suspending or debarring 
the person from participation in an agricultural trade program for 
using a foreign agricultural commodity in violation of the terms and 
conditions of the program.
    ``(b) Waiver.--
            ``(1) In general.--The Commodity Credit Corporation may 
        waive the suspension or debarment of a person from 
        participation in an agricultural trade program for using a 
        foreign agricultural commodity in violation of the terms and 
        conditions of the program if the person demonstrates, to the 
        satisfaction of the Corporation, that--
                    ``(A) the use of the foreign agricultural commodity 
                was unintentional; and
                    ``(B) the quantity of the foreign agricultural 
                commodity used was less than 1 percent of the total 
                quantity of the commodity involved in the transaction.
            ``(2) Other penalties.--Any waiver by the Commodity Credit 
        Corporation of a suspension or debarment of a person under 
        paragraph (1) shall not affect the liability of the person for 
        any other penalty imposed under an agricultural trade program 
        for the quantity of the foreign agricultural commodity 
        involved.''.
    (b) Effective Date.--This section and the amendment made by this 
section shall become effective 120 days after the date of enactment of 
this Act.

                                 <all>

S 730 IS----2