[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2708 Introduced in House (IH)]
105th CONGRESS
1st Session
H. R. 2708
To provide a framework for consideration by the legislative and
executive branches of unilateral economic sanctions.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
October 23, 1997
Mr. Hamilton (for himself, Mr. Crane, Mr. Kolbe, Mr. Bereuter, Mr.
Ewing, Mr. Manzullo, and Mr. Blumenauer) introduced the following bill;
which was referred to the Committee on International Relations, and in
addition to the Committees on Ways and Means, and Banking and Financial
Services, for a period to be subsequently determined by the Speaker, in
each case for consideration of such provisions as fall within the
jurisdiction of the committee concerned
_______________________________________________________________________
A BILL
To provide a framework for consideration by the legislative and
executive branches of unilateral economic sanctions.
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 ``Enhancement of Trade, Security, and
Human Rights through Sanctions Reform Act''.
SEC. 2. PURPOSE.
It is the purpose of this Act to establish an effective framework
for consideration by the legislative and executive branches of
unilateral economic sanctions.
SEC. 3. STATEMENT OF POLICY.
It is the policy of the United States--
(1) to pursue United States interests through vigorous and
effective diplomatic, political, commercial, charitable,
educational, cultural, and strategic engagement with other
countries, while recognizing that the national security
interests of the United States may sometimes require the
imposition of economic sanctions on other countries;
(2) to foster multilateral cooperation on vital matters of
United States foreign policy, including promoting human rights
and democracy, combating international terrorism, proliferation
of weapons of mass destruction, and international narcotics
trafficking, and ensuring adequate environmental protection;
(3) to promote United States economic growth and job
creation by expanding exports of goods, services, and
agricultural commodities, and by encouraging investment that
supports the sale abroad of products and services of the United
States;
(4) to maintain the reputation of United States businesses
and farmers as reliable suppliers to international customers of
quality products and services, including United States
manufactures, technology products, financial services, and
agricultural commodities;
(5) to avoid the use of restrictions on exports of
agricultural commodities as a foreign policy weapon;
(6) to oppose policies of other countries designed to
discourage economic interaction with countries friendly to the
United States or with any United States national, and to avoid
use of such measures as instruments of United States foreign
policy; and
(7) when economic sanctions are necessary--
(A) to target them as narrowly as possible on those
foreign governments, entities, and officials that are
responsible for the conduct being targeted, thereby
minimizing unnecessary or disproportionate harm to
individuals who are not responsible for such conduct;
and
(B) to the extent feasible, to avoid any adverse
impact of economic sanctions on the humanitarian
activities of United States and foreign nongovernmental
organizations in a country against which sanctions are
imposed.
SEC. 4. DEFINITIONS.
As used in this Act:
(1) Unilateral economic sanction.--
(A) In general.--The term ``unilateral economic
sanction'' means any restriction or condition on
economic activity with respect to a foreign country or
foreign entity that is imposed by the United States for
reasons of foreign policy or national security,
including any of the measures described in subparagraph
(B), except in a case in which the United States
imposes the measure pursuant to a multilateral regime
and the other members of that regime have agreed to
impose substantially equivalent measures.
(B) Particular measures.--The measures referred to
in subparagraph (A) are the following:
(i) The suspension, restriction, or
prohibition of exports or imports of any
product, technology, or service to or from a
foreign country or entity.
(ii) The suspension of, or any restriction
or prohibition on, financial transactions with
a foreign country or entity.
(iii) The suspension of, or any restriction
or prohibition on, direct or indirect
investment in or from a foreign country or
entity.
(iv) The imposition of increased tariffs
on, or other restrictions on imports of,
products of a foreign country or entity,
including the denial, revocation, or
conditioning of nondiscriminatory (most-
favored-nation) trade treatment.
(v) The suspension of, or any restriction
or prohibition on--
(I) the authority of the Export-
Import Bank of the United States to
give approval to the issuance of any
guarantee, insurance, or extension of
credit in connection with the export of
goods or services to a foreign country
or entity;
(II) the authority of the Trade and
Development Agency to provide
assistance in connection with projects
in a foreign country or in which a
particular foreign entity participates;
or
(III) the authority of the Overseas
Private Investment Corporation to
provide insurance, reinsurance,
financing, or conduct other activities
in connection with projects in a
foreign country or in which a
particular foreign entity participates.
(vi) A requirement that the United States
representative to an international financial
institution vote against any loan or other
utilization of funds to, for, or in a foreign
country or particular foreign entity.
(vii) A measure imposing any restriction or
condition on economic activity on any foreign
government or entity on the ground that such
government or entity does business in or with a
foreign country.
(viii) A measure imposing any restriction
or condition on economic activity on any person
that is a national of a foreign country, or on
any government or other entity of a foreign
country, on the ground that the government of
that country has not taken measures in
cooperation with, or similar to, sanctions
imposed by the United States on a third
country.
(ix) The suspension of, or any restriction
or prohibition on, travel rights or air
transportation to or from a foreign country.
(x) Any restriction on the filing or
maintenance in a foreign country of any
proprietary interest in intellectual property
rights (including patents, copyrights, and
trademarks), including payment of patent
maintenance fees.
(C) Multilateral regime.--As used in this
paragraph, the term ``multilateral regime'' means an
agreement, arrangement, or obligation under which the
United States cooperates with other countries in
restricting commerce for reasons of foreign policy or
national security, including--
(i) obligations under resolutions of the
United Nations;
(ii) nonproliferation and export control
arrangements, such as the Australia Group, the
Nuclear Supplier's Group, the Missile
Technology Control Regime, and the Wassenaar
Arrangement;
(iii) treaty obligations, such as under the
Chemical Weapons Convention, the Treaty on the
Non-Proliferation of Nuclear Weapons, and the
Biological Weapons Convention; and
(iv) agreements concerning protection of
the environment, such as the International
Convention for the Conservation of Atlantic
Tunas, the Declaration of Panama referred to in
section 2(a)(1) of the International Dolphin
Conservation Act (16 U.S.C. 1361 note), the
Convention on International Trade in Endangered
Species, the Montreal Protocol on Substances
that Deplete the Ozone Layer, and the Basel
Convention on the Control of Transboundary
Movements of Hazardous Wastes.
(D) Financial transaction.--As used in this
paragraph, the term ``financial transaction'' has the
meaning given that term in section 1956(c)(4) of title
18, United States Code.
(E) Investment.--As used in this paragraph, the
term ``investment'' means any contribution or
commitment of funds, commodities, services, patents, or
other forms of intellectual property, processes, or
techniques, including--
(i) a loan or loans;
(ii) the purchase of a share of ownership;
(iii) participation in royalties, earnings,
or profits; and
(iv) the furnishing or commodities or
services pursuant to a lease or other contract.
(F) Exclusions.--The term ``unilateral economic
sanction'' does not include--
(i) any measure imposed to remedy unfair
trade practices or to enforce United States
rights under a trade agreement, including under
section 337 of the Tariff Act of 1930, title
VII of that Act, title III of the Trade Act of
1974, sections 1374 and 1377 of the Omnibus
Trade and Competitiveness Act of 1988 (19
U.S.C. 3103 and 3106), and section 3 of the Act
of March 3, 1933 (41 U.S.C. 10b-1);
(ii) any measure imposed to remedy market
disruption or to respond to injury to a
domestic industry for which increased imports
are a substantial cause or threat thereof,
including remedies under sections 201 and 406
of the Trade Act of 1974, and textile import
restrictions (including those imposed under
section 204 of the Agricultural Act of 1956 (7
U.S.C. 1784));
(iii) any action taken under title IV of
the Trade Act of 1974, including the enactment
of a joint resolution under section 402(d)(2)
of that Act;
(iv) any measure imposed to restrict
imports of agricultural commodities to protect
food safety or to ensure the orderly marketing
of commodities in the United States, including
actions taken under section 22 of the
Agricultural Adjustment Act (7 U.S.C. 624);
(v) any measure imposed to restrict imports
of any other products in order to protect
domestic health or safety;
(vi) any measure authorized by, or imposed
under, a multilateral or bilateral trade
agreement to which the United States is a
signatory, including the Uruguay Round
Agreements, the North American Free Trade
Agreement, the United States-Israel Free Trade
Agreement, and the United States-Canada Free
Trade Agreement; and
(vii) any export control imposed on any
item on the United States Munitions List.
(2) National emergency.--The term ``national emergency''
means any unusual or extraordinary threat, which has its source
in whole or substantial part outside the United States, to the
national security, foreign policy, or economy of the United
States.
(3) Agricultural commodity.--The term ``agricultural
commodity'' has the meaning given that term in section 102(1)
of the Agricultural Trade Act of 1978 (7 U.S.C. 5602(1)).
(4) Appropriate committees.--The term ``appropriate
committees'' means the Committee on Agriculture, the Committee
on International Relations, the Committee on Ways and Means,
and the Committee on Banking and Financial Services of the
House of Representatives, and the Committee on Agriculture,
Nutrition, and Forestry, the Committee on Finance, and the
Committee on Foreign Relations of the Senate.
(5) Contract sanctity.--The term ``contract sanctity'',
with respect to a unilateral economic sanction, refers to the
inapplicability of the sanction to--
(A) a contract or agreement entered into before the
sanction is imposed, or to a valid export license or
other authorization to export; and
(B) actions taken to enforce the right to maintain
intellectual property rights, in the foreign country
against which the sanction is imposed, which existed
before the imposition of the sanction.
SEC. 5. GUIDELINES FOR UNILATERAL ECONOMIC SANCTIONS LEGISLATION.
Any bill or joint resolution that imposes any unilateral economic
sanction, or authorizes the imposition of any unilateral economic
sanction by the executive branch, and is considered by the House of
Representatives or the Senate, should--
(1) state the foreign policy or national security objective
or objectives of the United States that the economic sanction
is intended to achieve;
(2) provide that the economic sanction terminate 2 years
after it is imposed, unless specifically reauthorized by the
Congress;
(3) provide for contract sanctity;
(4) provide authority for the President both to adjust the
timing and scope of the sanction and to waive the sanction, if
the President determines it is in the national interest to do
so;
(5)(A) target the sanction as narrowly as possible on
foreign governments, entities, and officials that are
responsible for the conduct being targeted; and
(B) seek to minimize any adverse impact on the humanitarian
activities of United States and foreign nongovernmental
organizations in any country against which the sanction may be
imposed; and
(6) provide, to the extent that the Secretary of
Agriculture or the Congressional Budget Office finds that--
(A) the proposed sanction is likely to restrict
exports of any agricultural commodity or is likely to
result in retaliation against exports of any
agricultural commodity from the United States, and
(B) the sanction is proposed to be imposed, or is
likely to be imposed, on a country or countries that
constituted, in the preceding calendar year, the market
for more than 3 percent of all export sales from the
United States of an agricultural commodity,
that the Secretary of Agriculture expand agricultural export
assistance under United States market development, food
assistance, or export promotion programs to offset the likely
damage to incomes of producers of the affected agricultural
commodity or commodities, to the maximum extent permitted by
the obligations of the United States under the Agreement on
Agriculture referred to in section 101(d)(2) of the Uruguay
Round Agreements Act (19 U.S.C. 3511(d)(2)).
SEC. 6. REQUIREMENTS FOR BILL OR JOINT RESOLUTION.
(a) Public Comment.--Before considering a bill or joint resolution
that imposes any unilateral economic sanction, or authorizes the
imposition of any unilateral economic sanction by the executive branch,
the committee of primary jurisdiction shall publish a notice which
provides an opportunity for interested members of the public to submit
comments to the committee on the proposed sanction.
(b) When Reports Requested.--The committee of primary jurisdiction
that orders reported a bill or joint resolution described in section 5
shall timely request from the President and the Secretary of
Agriculture the reports identified in subsection (c). Each such report
that has been timely submitted prior to the filing of the committee
report accompanying the bill or joint resolution shall be included in
the committee report. The committee report shall also contain, if the
bill or joint resolution does not meet any of the guidelines specified
in paragraphs (1) through (6) of section 5, an explanation of why it
does not.
(c) Reports.--
(1) Report by the president.--The President's report to the
Congress under subsection (b) shall contain--
(A) an assessment of--
(i) the likelihood that the proposed
unilateral economic sanction will achieve its
stated objective within a reasonable period of
time; and
(ii) the impact of the proposed unilateral
economic sanction on--
(I) humanitarian conditions,
including the impact on conditions in
any specific countries on which the
sanction is proposed to be or may be
imposed;
(II) humanitarian activities of
United States and foreign
nongovernmental organizations;
(III) relations with United States
allies;
(IV) other United States national
security and foreign policy interests;
and
(V) countries and entities other
than those on which the sanction is
proposed to be or may be imposed;
(B) a description and assessment of--
(i) diplomatic and other steps the United
States has taken to accomplish the intended
objectives of the unilateral sanction
legislation;
(ii) the likelihood of multilateral
adoption of comparable measures;
(iii) comparable measures undertaken by
other countries;
(iv) alternative measures to promote the
same objectives, and an assessment of their
potential effectiveness;
(v) any obligations of the United States
under international treaties or trade
agreements with which the proposed sanction may
conflict;
(vi) the likelihood that the proposed
sanction will lead to retaliation against
United States interests, including agricultural
interests; and
(vii) whether the achievement of the
objectives of the proposed sanction outweighs
any likely costs to United States foreign
policy, national security, economic, and
humanitarian interests, including any potential
harm to United States business, agriculture,
and consumers, and any potential harm to the
international reputation of the United States
as a reliable supplier of products, technology,
agricultural commodities, and services.
(2) Report by the secretary of agriculture.--The Secretary
of Agriculture shall submit to the appropriate committees a
report which shall contain an assessment of--
(A) the extent to which any country or countries
proposed to be sanctioned or likely to be sanctioned
are markets that accounted for, in the preceding
calendar year, more than 3 percent of all export sales
from the United States of any agricultural commodity;
(B) the likelihood that exports of agricultural
commodities from the United States will be affected by
the proposed sanction or by retaliation by any country
proposed to be sanctioned or likely to be sanctioned,
and specific commodities which are most likely to be
affected;
(C) the likely effect on incomes of producers of
the specific commodities identified by the Secretary;
(D) the extent to which the proposed sanction would
permit foreign suppliers to replace United States
suppliers; and
(E) the likely effect of the proposed sanction on
the reputation of United States farmers as reliable
suppliers of agricultural commodities in general, and
of the specific commodities identified by the
Secretary.
(3) Federal private sector mandate.--
(A) In general.--Any bill or joint resolution that
imposes any unilateral economic sanction described in
section 5 shall be considered to include a Federal
private sector mandate for purposes of part B of title
IV of the Congressional Budget Act of 1974.
(B) Report by the congressional budget office.--The
report by the Congressional Budget Office pursuant to
subparagraph (A) shall include an assessment of the
likely short-term and long-term costs of the proposed
sanction to the United States economy, including the
potential impact on United States trade performance,
employment, and growth, the international reputation of
the United States as a reliable supplier of products,
agricultural commodities, technology, and services, and
the economic well-being and international competitive
position of United States industries, firms, workers,
farmers, and communities.
SEC. 7. REQUIREMENTS FOR EXECUTIVE ACTION.
(a) In General.--The President may implement a unilateral economic
sanction under any provision of law not less than 60 days after
announcing his intention to do so.
(b) Consultation.--The President shall consult with the appropriate
committees regarding the proposed unilateral economic sanction,
including consultations regarding efforts to achieve or increase
multilateral cooperation on the issues or problems prompting the
proposed sanction.
(c) Public Hearings; Record.--The President shall publish a notice
in the Federal Register of the opportunity for interested persons to
submit comments on the proposed unilateral economic sanction.
(d) Guidelines for Executive Branch Sanctions.--Any unilateral
economic sanction imposed by the President--
(1) shall--
(A) include a clear finding that the sanction is
likely to achieve a specific United States foreign
policy or national security objective within a
reasonable period of time, which shall be specified,
and that the achievement of the objectives of the
sanction outweighs any costs to United States national
interests;
(B) provide for contract sanctity;
(C) terminate not later than 2 years after the
sanction is imposed, unless specifically extended by
the President in accordance with the procedures of this
section;
(D)(i) be targeted as narrowly as possible on
foreign governments, entities, and officials that are
responsible for the conduct being targeted; and
(ii) seek to minimize any adverse impact on the
humanitarian activities of United States and foreign
nongovernmental organizations in a country against
which the sanction may be imposed; and
(2) should provide, to the extent that the Secretary of
Agriculture finds that--
(A) a unilateral economic sanction is likely to
restrict exports of any agricultural commodity from the
United States or is likely to risk retaliation against
exports of any agricultural commodity from the United
States, and
(B) the sanction is proposed to be imposed, or is
likely to be imposed, on a country or countries that
constituted, in the preceding calendar year, the market
for more than 3 percent of all export sales from the
United States of an agricultural commodity,
that the Secretary of Agriculture expand agricultural export
assistance under United States market development, food
assistance, or export promotion programs to offset the likely
damage to incomes of producers of the affected agricultural
commodity or commodities, to the maximum extent permitted by
law and by the obligations of the United States under the
Agreement on Agriculture referred to in section 101(d)(2) of
the Uruguay Round Agreements Act (19 U.S.C. 3511(d)(2)).
(e) Report by the President.--Prior to imposing any unilateral
economic sanction, the President shall provide a report to the
appropriate committees on the proposed sanction. The report shall
include the report of the International Trade Commission under
subsection (g) (if timely submitted prior to the filing of the report).
The President's report shall contain the following:
(1) An explanation of the foreign policy or national
security objective or objectives intended to be achieved
through the proposed sanction.
(2) An assessment of--
(A) the likelihood that the proposed unilateral
economic sanction will achieve its stated objectives
within the stated period of time; and
(B) the impact of the proposed unilateral economic
sanction on--
(i) humanitarian conditions, including the
impact on conditions in any specific countries
on which the sanctions are proposed to be
imposed;
(ii) humanitarian activities of United
States and foreign nongovernmental
organizations;
(iii) relations with United States allies;
(iv) other United States national security
and foreign policy interests; and
(v) countries and entities other than those
on which the sanction is proposed to be
imposed.
(3) A description and assessment of--
(A) diplomatic and other steps the United States
has taken to accomplish the intended objectives of the
proposed sanction;
(B) the likelihood of multilateral adoption of
comparable measures;
(C) comparable measures undertaken by other
countries;
(D) alternative measures to promote the same
objectives, and an assessment of their potential
effectiveness;
(E) any obligations of the United States under
international treaties or trade agreements with which
the proposed sanction may conflict;
(F) the likelihood that the proposed sanction will
lead to retaliation against United States interests,
including agricultural interests; and
(G) whether the achievement of the objectives of
the proposed sanction outweighs any likely costs to
United States foreign policy, national security,
economic, and humanitarian interests, including any
potential harm to United States business, agriculture,
and consumers, and any potential harm to the
international reputation of the United States as a
reliable supplier of products, technology, agricultural
commodities, and services.
(f) Report by the Secretary of Agriculture.--Prior to the
imposition of a unilateral economic sanction by the President, the
Secretary of Agriculture shall submit to the appropriate committees a
report which shall contain an assessment of--
(1) the extent to which any country or countries proposed
to be sanctioned are markets that accounted for, in the
preceding calendar year, more than 3 percent of all export
sales from the United States of any agricultural commodity;
(2) the likelihood that exports of agricultural commodities
from the United States will be affected by the proposed
sanction or by retaliation by any country proposed to be
sanctioned, including specific commodities which are most
likely to be affected;
(3) the likely effect on incomes of producers of the
specific commodities identified by the Secretary;
(4) the extent to which the proposed sanction would permit
foreign suppliers to replace United States suppliers; and
(5) the likely effect of the prosed sanction on the
reputation of United States farmers as reliable suppliers of
agricultural commodities in general, and of the specific
commodities identified by the Secretary.
(g) Report by the United States International Trade Commission.--
Before imposing a unilateral economic sanction, the President shall
make a timely request to the United States International Trade
Commission for a report on the likely short-term and long-term costs of
the proposed sanction to the United States economy, including the
potential impact on United States trade performance, employment, and
growth, the international reputation of the United States as a reliable
supplier of products, agricultural commodities, technology, and
services, and the economic well-being and international competitive
position of United States industries, firms, workers, farmers, and
communities.
(h) Waiver in Case of National Emergency.--The President may waive
any of the requirements of subsections (a), (b), (c), (e), (f), and
(g), in the event that the President determines that there exists a
national emergency that requires the exercise of the waiver. In the
event of such a waiver, the requirements waived shall be met during the
60-day period immediately following the imposition of the unilateral
economic sanction, and the sanction shall terminate 90 days after being
imposed unless such requirements are met. The President may waive any
of the requirements of paragraphs (1)(B), (1)(D), and (2) of subsection
(d) in the event that the President determines that the unilateral
economic sanction is related to actual or imminent armed conflict
involving the United States.
(i) Sanctions Review Committee.--The President shall establish a
Sanctions Review Committee to coordinate United States policy regarding
unilateral economic sanctions and to provide appropriate
recommendations to the President prior to decisions regarding such
sanctions. The Committee shall be comprised of--
(1) the Secretary of State;
(2) the Secretary of the Treasury;
(3) the Secretary of Defense;
(4) the Secretary of Agriculture;
(5) the Secretary of Commerce;
(6) the Secretary of Energy;
(7) the United States Trade Representative;
(8) the Director of the Office of Management and Budget;
(9) the Chairman of the Council of Economic Advisers;
(10) the Assistant to the President for National Security
Affairs; and
(11) the Assistant to the President for Economic Policy.
(j) Inapplicability of Other Provisions.--This section applies
notwithstanding any other provision of law.
SEC. 8. ANNUAL REPORTS.
(a) Annual Report.--Not later than 6 months after the date of the
enactment of this Act, and annually thereafter, the President shall
submit to the appropriate committees a report detailing with respect to
each country or entity against which a unilateral economic sanction has
been imposed--
(1) the extent to which the sanction has achieved foreign
policy or national security objectives of the United States
with respect to that country or entity;
(2) the extent to which the sanction has harmed
humanitarian interests in that country, the country in which
that entity is located, or in other countries; and
(3) the impact of the sanction on other national security
and foreign policy interests of the United States, including
relations with countries friendly to the United States, and on
the United States economy.
(b) Report by the United States International Trade Commission.--
Not later than 6 months after the date of the enactment of this Act,
and annually thereafter, the United States International Trade
Commission shall report to the appropriate committees on the costs,
individually and in the aggregate, of all unilateral economic sanctions
in effect under United States law, regulation, or Executive order. The
calculation of such costs shall include an assessment of the impact of
such measures on the international reputation of the United States as a
reliable supplier of products, agricultural commodities, technology,
and services.
<all>