[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[S. 465 Introduced in Senate (IS)]







105th CONGRESS
  1st Session
                                 S. 465

     To establish an Emergency Commission To End the Trade Deficit.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             March 18, 1997

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

_______________________________________________________________________

                                 A BILL


 
     To establish an Emergency Commission To End the Trade Deficit.

    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 ``End the Trade Deficit Act''.

SEC. 2. FINDINGS.

    The Congress makes the following findings:
            (1) The United States has had 21 years of consecutive 
        annual merchandise trade deficits, totaling $1,980,717,000,000.
            (2) In 1996, the United States had the largest negative 
        trade balance in its history, amounting to $187,617,000,000. It 
        is the third consecutive year in which the trade deficit has 
        set a new record. Economic forecasts anticipate continued 
        growth in the trade deficit in the next few years.
            (3) Private economic forecasts now project that the trade 
        deficit will nearly double within the next 10 to 15 years.
            (4) The positive net international asset position that the 
        United States built up over 100 years was eliminated in the 
        1980s. The United States today has become the world's largest 
        debtor nation, with a net debt of more than $774,000,000,000.
            (5) In recent times, the trade deficit has retarded growth 
        in the Nation's gross domestic product, increased the costs of 
        servicing higher net foreign debt, and made the United States 
        more dependent on international financial considerations.
            (6) The United States merchandise trade deficit is 
        characterized by large bilateral trade imbalances with a 
        handful of countries. Six countries (Japan, China, Canada, 
        Mexico, Germany, and Taiwan) accounted for 92 percent of the 
        United States trade deficit in goods in 1996. Japan and China 
        accounted for one-half of the trade deficit.
            (7) Today the United States trade deficit primarily 
        consists of high-value manufactured items. Automobiles, office 
        machines, electronic goods, and telecommunications equipment 
        now comprise nearly three-fourths of the trade deficit. The 
        United States imports more cars from Mexico than it exports to 
        the rest of the world. Imports of manufactured goods as a 
        percentage of the United States manufacturing gross domestic 
        product have risen from 11 percent in 1970 to more than 50 
        percent last year.
            (8) While the United States has one of the most open 
        borders and economies in the world, the United States faces 
        significant tariff and nontariff trade barriers with its 
        trading partners. Current overall trade balances do not reflect 
        the actual competitiveness or productivity of the United States 
        economy. Instead, they demonstrate the underlying structural 
        nature of the trade deficits. Full reciprocal market access 
        remains an elusive goal as documented in the annual reports of 
        the United States Trade Representative.
            (9) Since the last comprehensive review of national trade 
        and investment policies was conducted by a Presidential 
        commission in 1970, there have been massive worldwide economic 
        and political changes which have profoundly affected world 
        trading relationships. The cold war has ended. It is no longer 
        necessary or prudent for United States trade policy to be a 
        residual of United States foreign policy. Globalization, the 
        increased mobility of capital and technology, the growth of 
        transnational corporations, and the outsourcing of production 
        across national boundaries, are reshaping both the comparative 
        and competitive trade advantages among nations.
            (10) The United States is once again at a critical juncture 
        in trade policy development. The structural nature of the 
        United States trade deficit and its persistent growth must be 
        reversed. The causes and consequences of the trade deficit must 
        be documented and a plan must be developed to eliminate the 
        merchandise trade deficit within the next 10 years.

SEC. 3. ESTABLISHMENT OF COMMISSION.

    (a) Establishment.--There is established a commission to be known 
as the Emergency Commission To End the Trade Deficit (hereafter in this 
Act referred to as the ``Commission'').
    (b) Purpose.--The purpose of the Commission is to develop a trade 
policy plan to eliminate the United States merchandise trade deficit by 
the year 2007 and to develop a competitive trade policy for the 21st 
century. The plan shall include strategies necessary to achieve a 
balance of trade that fully reflects the competitiveness and 
productivity of the United States and also improves the standard of 
living of United States citizens.
    (c) Membership of Commission.--
            (1) Composition.--The Commission shall be composed of 11 
        members of whom--
                    (A) 3 shall be appointed by the President;
                    (B) 1 Senator and 1 other person shall be appointed 
                by the President pro tempore of the Senate upon the 
                recommendation of the Majority Leader of the Senate;
                    (C) 1 Senator and 1 other person shall be appointed 
                by the President pro tempore of the Senate upon the 
                recommendation of the Minority Leader of the Senate;
                    (D) 1 Member of the House of Representatives and 1 
                other person shall be appointed by the Speaker of the 
                House of Representatives; and
                    (E) 1 Member of the House of Representatives and 1 
                other person shall be appointed by the Minority Leader 
                of the House of Representatives.
            (2) Qualifications of members.--
                    (A) Presidential appointments.--Of the persons 
                appointed under paragraph (1)(A), not more than 1 may 
                be an officer, employee, or paid consultant of the 
                executive branch.
                    (B) Other appointments.--Persons who are not 
                Members of Congress, appointed under subparagraph (B), 
                (C), (D), or (E) of paragraph (1), shall be persons 
                who--
                            (i) have expertise in economics, 
                        international trade, manufacturing, labor, 
                        environment, business, or have other pertinent 
                        qualifications or experience; and
                            (ii) are not officers or employees of the 
                        United States.
                    (C) Other considerations.--In appointing Commission 
                members, every effort shall be made to ensure that the 
                members--
                            (i) are representative of a broad cross-
                        section of economic and trade perspectives 
                        within the United States; and
                            (ii) provide fresh insights to achieving a 
                        trade deficit reduction plan.
    (d) Period of Appointment; Vacancies.--
            (1) In general.--Members shall be appointed not later than 
        60 days after the date of enactment of this Act and the 
        appointment shall be for the life of the Commission.
            (2) Vacancies.--Any vacancy in the Commission shall not 
        affect its powers, but shall be filled in the same manner as 
        the original appointment.
    (e) Initial Meeting.--Not later than 30 days after the date on 
which all members of the Commission have been appointed, the Commission 
shall hold its first meeting.
    (f) Meetings.--The Commission shall meet at the call of the 
Chairperson.
    (g) Chairperson and Vice Chairperson.--The members of the 
Commission shall elect a chairperson and vice chairperson from among 
the members of the Commission.
    (h) Quorum.--A majority of the members of the Commission shall 
constitute a quorum for the transaction of business.
    (i) Voting.--Each member of the Commission shall be entitled to 1 
vote, which shall be equal to the vote of every other member of the 
Commission.

SEC. 4. DUTIES OF THE COMMISSION.

    (a) In General.--The Commission shall be responsible for developing 
a comprehensive trade policy plan, by examining the economic policies, 
trade, tax, and investment laws, and other legal incentives and 
restrictions that are relevant to reducing the United States trade 
deficit.
    (b) Recommendations.--The Commission shall examine and make 
recommendations to Congress and the President on the following:
            (1) The manner in which the Government of the United States 
        establishes and administers the Nation's fundamental trade 
        policies and objectives, including--
                    (A) the relationship of the merchandise trade 
                balance to the overall well-being of the United States 
                economy and in particular the impact the trade balance 
                has on wages and employment in various sectors of the 
                United States economy;
                    (B) the relationship of United States foreign 
                policy objectives to trade policy and the extent to 
                which foreign policy considerations receive a priority 
                over trade objectives;
                    (C) the effects the trade deficits in the areas of 
                manufacturing and technology have on defense production 
                and innovation capabilities of the United States;
                    (D) the extent to which United States monetary 
                policies and the need for foreign capital to finance 
                the current account deficit influence trade objectives;
                    (E) the coordination, allocation, and 
                accountability of trade responsibilities among Federal 
                agencies; and
                    (F) the methods for improving and enhancing 
                systematic congressional review of foreign policy and 
                trade policy as part of a plan to establish a 
                coordinated set of national economic priorities.
            (2) The causes and consequences of both the overall trade 
        deficit and specific bilateral trade deficits, including--
                    (A) identification and quantification of the 
                macroeconomic, sectoral, and bilateral trade factors 
                contributing to the United States trade deficit with 
                various countries;
                    (B) identification and quantification of the impact 
                of the trade deficit on the domestic economy, 
                industrial base, manufacturing capacity, number and 
                quality of jobs, productivity, wages, health, safety, 
                and environmental standards, and the United States 
                standard of living;
                    (C) identification and quantification of individual 
                industrial, manufacturing, and production sectors, and 
                intraindustry and intracompany transactions which 
                contribute to or are impacted by United States trade 
                deficits;
                    (D) a review of the adequacy of the current 
                collection and reporting of trade data, and the 
                identification and development of additional data bases 
                and economic measurements that may be needed to 
                properly quantify the factors described in 
                subparagraphs (A), (B), and (C);
                    (E) the relationship that tariff and nontariff 
                barriers have to trade deficits and the extent to which 
                trade deficits have become structural;
                    (F) the extent to which there is reciprocal market 
                access in each country with which the United States has 
                a persistent and substantial bilateral trade deficit; 
                and
                    (G) the role of transhipments on bilateral trade, 
                including foreign imports and exports, with special 
                attention to transhipments under the North American 
                Free Trade Agreement.
            (3) The relationship of United States trade deficits to 
        both comparative and competitive trade advantages within the 
        global economy, including--
                    (A) a systematic analysis of the United States 
                trade patterns with different trading partners, to what 
                extent the trade patterns are based on comparative and 
                competitive trade advantages, and how the trade 
                advantages relate to the goods that are exported to and 
                imported from various trading partners;
                    (B) the extent to which the increased mobility of 
                capital and technology has changed both comparative and 
                competitive trade advantages;
                    (C) identification and quantification of goods 
                imported into the United States which are produced by 
                child and forced labor, or under social and 
                environmental conditions that do not comply with United 
                States law;
                    (D) the impact that labor standards (including the 
                ability of labor to organize, bargain collectively, and 
                exercise human rights) have on world trade;
                    (E) the impact that currency exchange rates and the 
                manipulation of exchange rates have on world trade and 
                trade deficits;
                    (F) the effect that offset and technology transfer 
                agreements have on the long-term competitiveness of the 
                United States manufacturing sectors; and
                    (G) the extent to which international agreements 
                impact on United States competitiveness.
            (4) The flow of investments both into and out of the United 
        States, including--
                    (A) the impact such investments have on the United 
                States trade deficit and living standards of United 
                States production workers;
                    (B) the impact such investments have on United 
                States labor, community, environmental, health, and 
                safety standards;
                    (C) the extent to which United States tax laws, 
                such as income deferral, contribute to the movement of 
manufacturing facilities and jobs to foreign locations;
                    (D) the identification and quantification of 
                domestic plant closures and the movement of such plants 
                to foreign locations for production of goods for the 
                United States market;
                    (E) the impact of implied or threatened plant 
                closings and movement of jobs to foreign locations on 
                United States wage rates and working conditions;
                    (F) the effect of investment flows on wages in 
                countries with developed economies and on countries of 
                the former Soviet Union; and
                    (G) the effect of barriers to United States foreign 
                direct investment in developed and developing nations, 
                particularly nations with which the United States has a 
                trade deficit.
            (5) Evaluation of current policies and suggestions for 
        alternative strategies for the United States to systematically 
        reduce the trade deficit and improve the economic well-being of 
        United States citizens, including suggestions for--
                    (A) the development of bilateral and multilateral 
                trade relationships based on market access reciprocity;
                    (B) the retention and expansion of United States 
                manufacturing, agricultural, and technology sectors, 
                which are vital to the economy and security of the 
                United States;
                    (C) the discouragement of the expatriation of 
                United States plants, jobs, and production to nations 
                that have achieved competitive advantages by permitting 
                lower wages or lower health, safety, and environmental 
                standards, or by imposing requirements with respect to 
                investment, performance, or other obligations;
                    (D) methods by which the United States can 
                effectively compete in a global economy while improving 
                the labor, social, and environmental standards of its 
                trading partners, particularly developing nations;
                    (E) methods by which the United States can respond 
                to substantial shifts or manipulation of currency 
                exchange rates which distort trade relationships;
                    (F) methods for overcoming and offsetting trade 
                barriers which are either not subject to or otherwise 
                inadequately addressed by the World Trade Organization 
                or other multilateral arrangements;
                    (G) specific strategies for achieving improved 
                trade balances with those nations that the United 
                States has significant, persistent sectoral or 
                bilateral trade deficits, including Japan, China, 
                Canada, Mexico, Germany, and Taiwan;
                    (H) methods for the United States to respond to the 
                particular needs and circumstances of developing and 
                developed nations in a manner that is mutually 
                beneficial; and
                    (I) changes that may be required to current trade 
                agreements and organizations to allow the United States 
                to pursue and nurture economic growth for its 
                manufacturing, agriculture, and other production 
                sectors in a manner that insures improved compensation 
                and quality of life for United States citizens.

SEC. 5. FINAL REPORT; CONGRESSIONAL HEARINGS.

    (a) Final Report.--
            (1) In general.--Not later than 16 months after the date of 
        enactment of this Act, the Commission shall submit to the 
        President and Congress a final report which contains--
                    (A) the findings and conclusions of the Commission 
                described in section 4;
                    (B) a detailed plan for reducing both the overall 
                trade deficit and specific bilateral trade deficits; 
                and
                    (C) any recommendations for administrative and 
                legislative actions necessary to achieve such 
                reductions.
            (2) Separate views.--Any member of the Commission may 
        submit additional findings and recommendations as part of the 
        final report.
    (b) Congressional Hearings.--Not later than 6 months after the 
final report described in subsection (a) is submitted, the Committee on 
Ways and Means of the House of Representatives and the Committee on 
Finance of the Senate shall hold hearings on the report.

SEC. 6. POWERS OF COMMISSION.

    (a) Hearings.--The Commission may hold such hearings, sit and act 
at such times and places, take such testimony, and receive such 
evidence as the Commission may find advisable to fulfill the 
requirements of this Act. The Commission shall hold at least 7 public 
hearings, 1 or more in Washington, D.C. and 4 in different regions of 
the United States.
    (b) Information From Federal Agencies.--The Commission may secure 
directly from any Federal department or agency such information as the 
Commission considers necessary to carry out the provisions of this Act. 
Upon request of the Chairperson of the Commission, the head of such 
department or agency shall furnish such information to the Commission.
    (c) Postal Services.--The Commission may use the United States 
mails in the same manner and under the same conditions as other 
departments and agencies of the Federal Government.

SEC. 7. COMMISSION PERSONNEL MATTERS.

    (a) Compensation of Members.--Each member of the Commission who is 
not an officer or employee of the Federal Government shall be 
compensated at a rate equal to the daily equivalent of the annual rate 
of basic pay prescribed for level IV of the Executive Schedule under 
section 5315 of title 5, United States Code, for each day (including 
travel time) during which such member is engaged in the performance of 
the duties of the Commission. All members of the Commission who are 
officers or employees of the United States shall serve without 
compensation in addition to that received for their services as 
officers or employees of the United States.
    (b) Travel Expenses.--The members of the Commission shall be 
allowed travel expenses, including per diem in lieu of subsistence, at 
rates authorized for employees of agencies under subchapter I of 
chapter 57 of title 5, United States Code, while away from their homes 
or regular places of business in the performance of services for the 
Commission.
    (c) Staff.--
            (1) In general.--The Chairperson of the Commission may, 
        without regard to the civil service laws and regulations, 
        appoint and terminate an executive director and such other 
        additional personnel as may be necessary to enable the 
        Commission to perform its duties. The employment of an 
        executive director shall be subject to confirmation by the 
        Commission.
            (2) Compensation.--The Chairperson of the Commission may 
        fix the compensation of the executive director and other 
        personnel without regard to the provisions of chapter 51 and 
        subchapter III of chapter 53 of title 5, United States Code, 
        relating to classification of positions and General Schedule 
        pay rates, except that the rate of pay for the executive 
        director and other personnel may not exceed the rate payable 
        for level V of the Executive Schedule under section 5316 of 
        such title.
    (d) Detail of Government Employees.--Any Federal Government 
employee may be detailed to the Commission without reimbursement, and 
such detail shall be without interruption or loss of civil service 
status or privilege.
    (e) Procurement of Temporary and Intermittent Services.--The 
Chairperson of the Commission may procure temporary and intermittent 
services under section 3109(b) of title 5, United States Code, at rates 
for individuals which do not exceed the daily equivalent of the annual 
rate of basic pay prescribed for level V of the Executive Schedule 
under section 5316 of such title.

SEC. 8. AUTHORIZATION OF APPROPRIATIONS; GAO AUDIT.

    (a) In General.--There are authorized to be appropriated $2,000,000 
to the Commission to carry out the provisions of this Act.
    (b) GAO Audit.--Not later than 6 months after termination of the 
Commission, the Comptroller General of the United States shall complete 
an audit of the financial books and records of the Commission to 
determine that the limitation on expenses has been met, and shall 
submit a report on the audit to the President and Congress.

SEC. 9. TERMINATION OF COMMISSION.

    The Commission shall cease to exist 30 days after the date on which 
the Commission submits the final report under section 5.
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