[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[S. 1417 Introduced in Senate (IS)]
104th CONGRESS
1st Session
S. 1417
To assess the impact of the NAFTA, to require further negotiation of
certain provisions of the NAFTA, and to provide for the withdrawal from
the NAFTA unless certain conditions are met.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
November 16, 1995
Mr. Dorgan (for himself, Mr Byrd, Mr. Heflin, and Mr. Campbell)
introduced the following bill; which was read twice and referred to the
Committee on Finance
_______________________________________________________________________
A BILL
To assess the impact of the NAFTA, to require further negotiation of
certain provisions of the NAFTA, and to provide for the withdrawal from
the NAFTA unless certain conditions are met.
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 ``NAFTA Accountability Act''.
SEC. 2. FINDINGS.
The Congress makes the following findings:
(1) Expanded markets.--One of the purposes of the NAFTA, as
stated in the preamble, is to ``create an expanded and secure
market'' for goods and services. Instead, the NAFTA has
resulted in a spiraling trade deficit with Mexico and Canada
that will exceed $30,000,000,000 in 1995. Rather than
harmonious development and expansion as envisioned, the NAFTA
has resulted in trade deficits which are draining
$2,500,000,000 a month from the United States economy.
(2) Currency stability.--One of the purposes of the NAFTA
is to ``ensure a predictable commercial framework for business
planning and investment''. However, the NAFTA contains no
safeguards to minimize the negative economic impacts of severe
shifts in currency exchange rates among the NAFTA Parties. To
protect its own economy the United States has sought to bolster
the Mexican peso which is now being supported by
$30,000,000,000 in loans, mostly from unwilling United States
taxpayers. The devaluation of the Mexican peso has more than
offset tariff reductions and other trade benefits the United
States expected to achieve from the agreement.
(3) Fair agricultural trade.--One of the purposes of the
NAFTA is to reduce distortions to trade. In addition, the NAFTA
is supposed to promote conditions of fair competition and to
establish mutually advantageous rules governing trade. However,
since the NAFTA, there has been a rapid escalation of one-way
trade of Canadian grain exports of wheat, durum wheat, and
barley to the United States, disrupting markets and marketing
channels. Surges in the importation of certain Mexican fruits
and vegetables threaten domestic production and the importation
of livestock and meat products from the NAFTA Parties has
exacerbated the severe problems facing United States livestock
producers.
(4) Jobs, wages, and living standards.--One of the purposes
of the NAFTA is to ``create new employment opportunities and
improve working conditions and living standards'' in the
respective territories of the NAFTA Parties. Instead, there has
been a substantial loss of over 300,000 high-paying jobs in the
United States. A survey of United States companies conducted 20
months after the implementation of the NAFTA found that 90
percent of the companies that had anticipated an increased
number of jobs from the NAFTA have, in fact, not increased
employment since the NAFTA was implemented. In the first year
of the NAFTA's implementation, United States workers had the
sharpest drop of real hourly wages on record. More than
2,000,000 workers have become unemployed in Mexico since the
implementation of the NAFTA and real wages of Mexican workers
have been slashed 50 percent. In addition to the loss of
purchasing power, there has been an erosion in the standards of
living in the United States, Canada, and Mexico.
(5) Manufacturing base.--One of the purposes of the NAFTA
is to enhance the competitiveness of firms in the global
market. However, rather than increase the ability of the
manufacturing sector in the United States to compete in the
world market, the NAFTA has facilitated the movement of United
States manufacturing facilities and jobs to Mexico. The NAFTA
has contributed to a net loss of 227,000 manufacturing jobs in
the United States during the last 7 months and an unprecedented
flood of imports of manufactured goods into the United States.
(6) Health and environment.--Other purposes of the NAFTA
are ``to safeguard the public welfare'' and ``to strengthen the
development and enforcement of environmental laws and
regulations''. Yet, since the implementation of the NAFTA, the
public welfare has been undermined by increased imports of food
products that do not meet United States health standards. In
addition, the NAFTA has accelerated the relocation of United
States manufacturing facilities to the United States-Mexico
border zone, where hundreds of new manufacturing plants have
been added. Without adequate environmental safeguards, the
uncontrolled industrial and population growth in the border
zone has aggravated pollution and health hazards, increasing
the incidence of infectious diseases and human exposure to
toxins.
(7) Illegal drugs.--Rather than safeguarding the public
welfare, the NAFTA has allowed the increased flow of illegal
drugs and controlled substances into the United States from
Mexico. More than half of all cocaine and marijuana illegally
entering the United States now comes through Mexico, with an
increasing portion carried by trucks which undergo more limited
inspection under the NAFTA.
(8) Protect rights.--The promotion of sustainable
development as well as the protection and enhancement of basic
rights are stated objectives of the NAFTA. As envisioned, the
NAFTA is to increase economic opportunity together with
expansion of political freedoms and human rights. Yet
these objectives are not being fulfilled, especially in Mexico, where
some citizens continue to experience infringements of such rights and
freedoms.
(9) NAFTA should not be expanded.--The Congress approved
the NAFTA in order to achieve economic, social, and
environmental benefits for the people of the United States.
Based on currently available information, the goals and
objectives of the NAFTA are not being achieved. Therefore, the
NAFTA should not be expanded to include any other country.
(10) NAFTA to be renegotiated and benefits certified.--
Based on the experience with the NAFTA since its
implementation, it has become evident that further negotiation
is required to resolve fundamental inadequacies within the
NAFTA with respect to trade balances, currency differentials,
and agricultural provisions. If the NAFTA is to continue,
responsible public officials must be able to certify specific
measures of economic, social, and environmental progress.
Otherwise Congress has no choice but to withdraw its approval
of the NAFTA.
SEC. 3. CONDITIONS FOR CONTINUED PARTICIPATION IN THE NAFTA.
(a) In General.--
(1) Withdrawal of approval.--Notwithstanding any other
provision of law, unless each of the conditions described in
paragraph (2) is met--
(A) the approval of the NAFTA by the Congress
provided for in section 101(a) of the North American
Free Trade Agreement Implementation Act shall cease to
be effective on October 1, 1997, and
(B) not later than April 1, 1997, the President
shall provide written notice of withdrawal to the
Governments of Canada and Mexico in accordance with
Article 2205 of the NAFTA.
(2) Conditions for continuing participation in nafta.--The
conditions described in this paragraph are that before December
31, 1996--
(A) the President--
(i) renegotiate the terms of the NAFTA in
accordance with paragraphs (1), (2), and (3) of
subsection (b), and
(ii) provide the certification to the
Congress described in subsection (b)(8),
(B) the Secretary of Labor provide the
certification described in subsection (b)(4),
(C) the Secretary of Commerce provide the
certification described in subsection (b)(5),
(D) the Secretary of Agriculture and the
Administrator of the Food and Drug Administration
provide the certification described in subsection
(b)(6)(A),
(E) the Administrator of the Environmental
Protection Agency submit the certification and report
described in subsection (b)(6)(B), and
(F) the Attorney General of the United States
provide the certification described in subsection
(b)(7).
(b) Areas of Renegotiation and Certification.--The areas of
renegotiation and certification described in this subsection are as
follows:
(1) Renegotiate the nafta to correct trade deficits.--The
President is authorized and directed to confer with the
Governments of Canada and Mexico and to renegotiate the terms
of the NAFTA to provide for implementation of emergency
adjustments of tariffs, quotas, and other measures to stabilize
the flow of trade among the NAFTA Parties when the United
States has an annual deficit in trade of goods and services
with another NAFTA Party that exceeds 10 percent of United
States exports to that Party.
(2) Renegotiate the nafta to correct currency
distortions.--The President is authorized and directed to
confer with the Governments of Canada and Mexico and to
renegotiate the terms of the NAFTA to provide for the
implementation of emergency adjustments of tariffs, quotas, and
other measures to mitigate the adverse effects of rapid or
substantial changes in exchange rates between the United States
dollar and the currency of another NAFTA Party.
(3) Renegotiate the nafta to correct agricultural
provisions.--The President is authorized and directed to confer
with the Governments of Canada and Mexico and to renegotiate
the terms of the NAFTA to provide for the implementation of
emergency tariffs, quotas, and other measures to bring the
levels of wheat, durum wheat, and barley imported from Canada
to levels that are comparable to the levels of these products
imported during the 10-year period before the date the NAFTA
entered into force with respect to the United States. The
President is further authorized and directed to renegotiate the
NAFTA to establish and strengthen provisions to prevent imports
of agricultural commodities from any NAFTA Party from unfairly
displacing United States production and to provide improved
mechanisms for relief for United States producers that are
adversely impacted by such imports.
(4) Certification of gains in united states jobs and living
standards.--If the Secretary of Labor, after consultation with
appropriate government agencies and citizen organizations,
determines that--
(A) the number of jobs resulting from increased
exports of United States manufactured goods to other
NAFTA Parties exceeds the number of jobs lost because
of imports of manufactured goods from other NAFTA
Parties since January 1, 1994, and
(B) the purchasing power of wage-earners in the
United States has increased since January 1, 1994,
the Secretary shall so certify to the Congress.
(5) Certification of increased domestic manufacturing.--If
the Secretary of Commerce, after consultation with the
appropriate government agencies and citizen organizations,
determines that the export of United States manufactured goods
to the NAFTA Parties exceeds the imports of manufactured goods
from NAFTA Parties, the Secretary shall so certify to the Congress. In
making the determination, the Secretary shall not include any goods
originating outside the United States that are exported to another
NAFTA Party, nor imports from another NAFTA Party that are destined for
other countries.
(6) Certification relating to health and environmental
standards.--
(A) In general.--If the Secretary of Agriculture
and the Administrator of the Food and Drug
Administration, after consultation with appropriate
government agencies and citizen organizations,
determine, with respect to imports from NAFTA Parties,
that since January 1, 1994, there has been a reduced
incidence of contaminated and adulterated food, food
containing additives or pesticide residues exceeding
United States standards, or food containing additives
or pesticide residues which cannot be legally used in
the United States, the Secretary and Administrator
shall so certify to the Congress. In making this
determination, all foods and food products, including
fruits, vegetables, grains, oilseeds, and meats, both
fresh and processed, shall be reviewed. Special
attention shall be given to foods which have had a
history of violations.
(B) Border area pollution.--If the Administrator of
the Environmental Protection Agency determines that
conditions affecting public health in the United
States-Mexico border zone have not worsened since
January 1, 1994, the Administrator shall so certify to
the Congress. In addition, the Administrator, in
consultation with the Secretariat for the NAFTA
Commission on Environmental Cooperation, shall report
to the Congress on the outcomes of the Administration's
investigations on pollution and health hazards in and
around the United States-Mexico border zone since the
implementation of the NAFTA. The report shall include--
(i) a description and status report of all
industrial site cleanup and environmental
improvement projects begun in the border zone
since January 1, 1994;
(ii) information available from local,
State, and Federal health agencies reflecting
the incidence since January 1, 1990, in and
around the border zone of hepatitis, neural
stem birth defects, lupus, chronic adolescent
diarrhea, tuberculosis, nonneural birth
defects, cholera, botulism, and other disorders
commonly related to industrial pollution,
inadequate infrastructures, and hazardous
waste; and
(iii) information on the incidence of air
and water pollution since January 1, 1990, and
the causes, levels, and types of pollution
which have occurred.
(7) Certification relating to illegal drugs.--If the
Attorney General of the United States determines, after a
review by the Drug Enforcement Administration and consultation
with appropriate government agencies and citizen organizations,
that increased imports from the NAFTA Parties are not resulting
in an increase in illegal drugs or other controlled substances
from Mexico or Canada, the Attorney General shall so certify to
the Congress. The Attorney General through the Drug Enforcement
Administration shall conduct a thorough review and report to
the Congress regarding the flow of illegal drugs from Mexico
and Canada and the relationship of such flow to trade of other
commodities and services with the NAFTA Parties.
(8) Certification relating to democracy and human
freedoms.--If the President, after consultation with
appropriate government agencies, international organizations,
and citizen organizations, determines that the Government of
Mexico--
(A) is elected in free and fair elections,
(B) protects the rights of its citizens to organize
into political parties,
(C) protects the rights of its citizens to free
speech and the right of the news media to operate
without fear of government control or reprisal, and
(D) protects the rights of its citizens to assemble
and to organize associations to advance human rights
and economic opportunities,
the President shall so certify to the Congress.
SEC. 4. CONSULTATION WITH CONGRESS.
The President shall consult regularly with the Congress regarding
the negotiations described in section 3(b) (1), (2), and (3). The
United States Trade Representative shall consult with the appropriate
committees of Congress in the development of any technical and
conforming amendments that may be required to carry out the provisions
of this Act.
SEC. 5. NO EXPANSION OF NAFTA.
Until such time as the conditions described in section 3(b) are
met, it is the sense of the Congress that the President should not
engage in negotiations to expand the NAFTA to include other countries
and that fast-track authority should not be renewed with respect to the
approval of any such expansion of the NAFTA.
SEC. 6. DEFINITIONS.
As used in this Act:
(1) NAFTA.--The term ``NAFTA'' means the North American
Free Trade Agreement entered into between the United States,
Canada, and Mexico on December 17, 1992.
(2) NAFTA party.--The term ``NAFTA Party'' means the United
States, Canada, or Mexico.
(3) United states-mexico border zone.--The term ``United
States-Mexico border zone'' means the area that comprises the
12-mile zone on the Mexican side of the United States-Mexico
border and the counties within any State of the United States
that are contiguous with Mexico.
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