[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[S. 2016 Introduced in Senate (IS)]







104th CONGRESS
  2d Session
                                S. 2016

 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

                             August 1, 1996

   Mr. Dorgan (for himself, Mr. Byrd, Mr. Heflin, Mr. Campbell, Mr. 
 Wellstone, Mr. Hollings, Mr. Inouye, and Mr. D'Amato) 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 merchandise trade deficit with Mexico 
        and Canada that totaled $33,550,000,000 in 1995. Rather than 
        harmonious development and expansion as envisioned, the NAFTA 
        has resulted in trade deficits which have been draining over 
        $3,000,000,000 a month from the United States economy this 
        year.
            (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. Preferential treatment under NAFTA has allowed the 
        United States market to be unfairly targeted by Canadian makers 
        of certain woolen apparel products.
            (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 483,600 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 manufacturing jobs in the 
        United States 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) Highway safety.--The NAFTA is supposed to preserve the 
        flexibility of each nation to safeguard its public welfare. To 
        ensure high standards of highway safety, Congress specifically 
        provided that Mexican motor carriers must fully comply with all 
        United States motor carrier safety laws in order to operate in 
        the United States. Studies by law enforcement officials and 
        independent agencies effectively document the underlying 
        compliance problem. Mexican motor carriers and drivers do not 
        have to meet United States safety standards when operating in 
        Mexico. This fundamental difference in safety standards makes 
        it practically impossible to develop effective United States 
        enforcement programs for bringing all Mexican motor carriers 
        and drivers into compliance with United States laws. Therefore, 
        the opening of United States border States and eventually all 
        States to Mexican commercial vehicles, as scheduled under the 
        NAFTA, poses a serious threat to highway safety in the United 
        States.
            (8) 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.
            (9) 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.
            (10) 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.
            (11) 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)(9),
                    (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),
                    (F) the Secretary of Transportation provide the 
                certification described in subsection (b)(7), and
                    (G) the Attorney General of the United States 
                provide the certification described in subsection 
                (b)(8).
    (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 or products from any NAFTA Party 
        (including woolen apparel products from Canada) that unfairly 
        displace 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 highway safety.--If the 
        Secretary of Transportation after consultation with State 
        attorneys general, law enforcement officials, and State highway 
        safety agencies, other appropriate government agencies and 
        citizen organizations, determines that a comprehensive 
        enforcement system is in place to ensure that every Mexican 
        commercial truck or bus is properly inspected so that the 
        vehicle and its driver are in compliance with United States 
        transportation safety standards before crossing the border into 
        the United States, the Secretary shall so certify to the 
        Congress. In making such determination, the Secretary shall 
        review and document the results of border inspections of 
        Mexican vehicles coming into the United States since January 1, 
        1994. The Secretary shall further document the procedures that 
        must be completed during inspection to achieve full compliance 
        within such a comprehensive enforcement system.
            (8) 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.
            (9) 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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