[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[S. 1918 Referred in House (RFH)]







104th CONGRESS
  2d Session
                                S. 1918


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            October 4, 1996

              Referred to the Committee on Ways and Means

_______________________________________________________________________

                                 AN ACT


 
 To amend trade laws and related provisions to clarify the designation 
                       of normal trade relations.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. FINDINGS AND POLICY.

    (a) Findings.--The Congress makes the following findings:
            (1) Since the 18th century, the principle of 
        nondiscrimination among countries with which the United States 
        has trade relations, commonly referred to as ``most-favored-
        nation'' treatment, has been a cornerstone of United States 
        trade policy.
            (2) Although the principle remains firmly in place as a 
        fundamental concept in United States trade relations, the term 
        ``most-favored-nation'' is a misnomer which has led to public 
        misunderstanding.
            (3) It is neither the purpose nor the effect of the most-
        favored-nation principle to treat any country as ``most 
        favored''. To the contrary, the principle reflects the 
        intention to confer on a country the same trade benefits that 
        are conferred on any other country, that is, the intention not 
        to discriminate among trading partners.
            (4) The term ``normal trade relations'' is a more accurate 
        description of the principle of nondiscrimination as it applies 
        to the tariffs applicable generally to imports from United 
        States trading partners, that is, the general rates of duty set 
        forth in column 1 of the Harmonized Tariff Schedule of the 
        United States.
    (b) Policy.--It is the sense of the Congress that--
            (1) the language used in United States laws, treaties, 
        agreements, executive orders, directives, and regulations 
        should more clearly and accurately reflect the underlying 
        principles of United States trade policy; and
            (2) accordingly, the term ``normal trade relations'' 
        should, where appropriate, be substituted for the term ``most-
        favored-nation''.

SEC. 2. CHANGE IN TERMINOLOGY.

    (a) Trade Expansion Act of 1962.--The heading for section 251 of 
the Trade Expansion Act of 1962 (19 U.S.C. 1881) is amended to read as 
follows: ``normal trade relations''.
    (b) Trade Act of 1974.--(1) Section 402 of the Trade Act of 1974 
(19 U.S.C. 2432) is amended by striking ``(most-favored-nation 
treatment)'' each place it appears and inserting ``(normal trade 
relations)''.
    (2) Section 601(9) of the Trade Act of 1974 (19 U.S.C. 2481(9)) is 
amended by striking ``most-favored-nation treatment'' and inserting 
``trade treatment based on normal trade relations (known under 
international law as most-favored-nation treatment)''.
    (c) CFTA.--Section 302(a)(3)(C) of the United States Canada Free-
Trade Agreement Implementation Act of 1988 (19 U.S.C. 2112 note) is 
amended by striking ``the most-favored-nation rate of duty'' each place 
it appears and inserting ``the general subcolumn of the column 1 rate 
of duty set forth in the Harmonized Tariff Schedule of the United 
States''.
    (d) NAFTA.--Section 202(n) of the North American Free Trade 
Agreement Implementation Act (19 U.S.C. 3332(n)) is amended by striking 
``most-favored-nation''.
    (e) SEED Act.--Section 2(c)(11) of the Support for East European 
Democracy (SEED) Act of 1989 (22 U.S.C. 5401(c)(11)) is amended--
            (1) by striking ``(commonly referred to as `most favored 
        nation status')'', and
            (2) by striking ``Most Favored Nation Trade Status'' in the 
        heading and inserting ``Normal Trade Relations''.
    (f) United States-Hong Kong Policy Act of 1992.--Section 103(4) of 
the United States-Hong Kong Policy Act of 1992 (22 U.S.C. 5713(4)) is 
amended by striking ``(commonly referred to as `most-favored-nation 
status')''.

SEC. 3. SAVINGS PROVISIONS.

    Nothing in this Act shall affect the meaning of any provision of 
law, Executive order, Presidential proclamation, rule, regulation, 
delegation of authority, other document, or treaty or other 
international agreement of the United States relating to the principle 
of ``most-favored-nation'' (or ``most favored nation'') treatment. Any 
Executive order, Presidential proclamation, rule, regulation, 
delegation of authority, other document, or treaty or other 
international agreement of the United States that has been issued, 
made, granted, or allowed to become effective and that is in effect on 
the effective date of this Act, or was to become effective on or after 
the effective date of this Act, shall continue in effect according to 
its terms until modified, terminated, superseded, set aside, or revoked 
in accordance with law.

            Passed the Senate September 10, 1996.

            Attest:

                                                    GARY SISCO,

                                                             Secretary.