[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1942 Introduced in House (IH)]







106th CONGRESS
  1st Session
                                H. R. 1942

 To encourage the establishment of free trade areas between the United 
               States and certain Pacific Rim countries.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 26, 1999

 Mr. Crane (for himself, Mr. Dreier, Mrs. Johnson of Connecticut, and 
  Ms. Dunn) introduced the following bill; which was referred to the 
                      Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
 To encourage the establishment of free trade areas between the United 
               States and certain Pacific Rim countries.

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

SECTION 1. FINDINGS.

    The Congress makes the following findings:
            (1) Free trade agreements improve the income and prosperity 
        of the citizens of participating countries because open markets 
        increase competition, eliminate inefficiencies, and result in 
        lower costs to manufacturers and consumers.
            (2) The 21 member economies of APEC represent over half of 
        world production and almost half of global trade. In November 
        of 1994, leaders of members economies of APEC declared their 
        commitment to achieving ``free and open trade'' in the region 
        by the year 2020 in the case of developing countries and 2010 
        in the case of developed countries.
            (3) Continued economic growth through the creation of new 
        opportunities for trade and investment, and the economic and 
        political stability resulting from diminishing the proclivity 
        of governments to establish and maintain tariff and nontariff 
        trade barriers, is vital to the strategic and economic 
        interests of the United States in the Pacific Rim region.
            (4) The financial crisis affecting Asia, and associated 
        macroeconomic factors, have resulted in a severe disruption of 
        the pattern of rapid United States export growth that was the 
        dominant pattern of United States trade with the region during 
        the years 1989-1997.
            (5) At a difficult time in the world economy, which is 
        increasing pressures on countries to turn inward and adopt 
        protectionist policies, free trade agreement negotiations 
        provide additional leverage to achieve market opening measures 
        for United States goods and services.
            (6) Many countries in the region, including New Zealand, 
        Australia, and Singapore, are long-time allies of the United 
        States in working to increase economic growth through trade 
        liberalization, both in the World Trade Organization and in 
        APEC.
            (7) Building closer ties and coordinating with countries 
        whose interests are largely friendly to the United States will 
        have immense payoffs as the trade negotiations to achieve trade 
        liberalization described in paragraph (6) proceed early in the 
        next century.
            (8) In particular, the United States must continue to 
        promote its interests in the Asia-Pacific region through an 
        aggressive short- and long-term trade and investment 
        negotiating agenda.
            (9) Bilateral trade agreement negotiations have been shown 
        to exert constructive influence on multilateral and regional 
        trade negotiations. Typically, bilateral trade talks enlarge 
        common areas of agreement on trade disciplines that can then be 
        advanced more successfully in the context of a larger 
        negotiation, among additional trading partners.
            (10) Trade and investment disputes between the United 
        States and Pacific Rim countries could be more effectively 
        resolved in the context of mutually agreed-upon disciplines and 
        dispute settlement mechanisms rather than issue-by-issue 
        confrontations under section 301 of the Trade Act of 1974 or 
        other trade remedy laws.
            (11) By providing a firm foundation for enhanced 
        cooperation, free trade agreements between the United States 
        and Pacific Rim countries, whose economies are becoming 
        increasingly complementary and interdependent, will help ensure 
        mutually beneficial economic and political relations.
            (12) Free trade agreements, by enhancing market access and 
        the understanding of United States firms with respect to 
        competing effectively in Pacific Rim markets, will thereby 
        assist in stabilizing the bilateral trade balance between the 
        United States and countries in the Pacific Rim.

SEC. 2. UNITED STATES TRADE POLICY WITH ELIGIBLE PACIFIC RIM COUNTRIES.

    It shall be the policy of the United States to seek the elimination 
of tariff and nontariff barriers and to achieve more open, equitable, 
and reciprocal market access through the negotiation of bilateral free 
trade agreements with eligible Pacific Rim countries. These nontariff 
barriers include--
            (1) regulatory and other barriers that deny national 
        treatment and the right of establishment for trade in services;
            (2) denial of national treatment to foreign direct 
        investment;
            (3) lack of adequate protection for copyrights, patents, 
        trademarks, semiconductor chips, layout designs, trade secrets, 
        and other forms of intellectual property;
            (4) arbitrary and discriminatory sanitary, phytosanitary, 
        or technical standards;
            (5) government measures such as price controls, reference 
        pricing, and unreasonable restrictions on listings for 
        government-established formularies which deny full market 
        access for United States products; and
            (6) unfair or trade-distorting activities of State trading 
        enterprises and other administrative mechanisms.

SEC. 3. PRENEGOTIATION CONSULTATIONS.

    (a) Preliminary Consultations.--Within 60 days after the date of 
the enactment of this Act, the President shall identify, and initiate 
preliminary consultations with the government of, each eligible Pacific 
Rim country.
    (b) Ministerial Meeting.--If preliminary consultations indicate 
that the establishment of a free trade area between the United States 
and an eligible Pacific Rim country is potentially feasible and 
desirable, the President shall, within 60 days after the preliminary 
consultations are completed, request a meeting at the ministerial level 
with the government of that country to consider the conditions under 
which formal negotiations regarding a free trade agreement could be 
commenced.
    (c) ITC Advice.--Within 6 months after the end of each ministerial 
meeting held under subsection (b) with the government of an eligible 
Pacific Rim country, the United States International Trade Commission 
shall advise the President regarding the probable economic effects of 
providing duty-free treatment for such articles that are products of 
that country on industries in the United States producing like or 
directly competitive articles and on consumers in the United States.

SEC. 4. MINISTERIAL MEETING RECOMMENDATIONS.

    At each ministerial meeting convened pursuant to section 3(b), the 
President shall recommend the establishment of a council comprised of 
appropriate public and private sector officials from the respective 
countries. The functions of the council are--
            (1) to review and analyze the aspects of the existing 
        bilateral relationship as they relate to the negotiation of a 
        free trade agreement, including--
                    (A) trade and investment practices and impediments;
                    (B) differences in customs laws and procedures;
                    (C) the harmonization of trade statistics and other 
                economic data; and
                    (D) the status of bilateral disputes and exchange 
                of information on disputed practices; and
            (2) within 6 months after its establishment, to issue a 
        report on the overall bilateral relationship and the prospects 
        for a successful negotiation of a free trade agreement that 
        addresses the possible benefits and adverse effects of 
        concluding a free trade agreement and examines the types of 
        dispute settlement mechanisms that would be appropriate to 
        effectively resolve bilateral trade problems.

SEC. 5. PRESIDENTIAL DETERMINATION REGARDING THE FEASIBILITY AND 
              DESIRABILITY OF NEGOTIATING FREE TRADE AGREEMENTS WITH 
              ELIGIBLE COUNTRIES.

    (a) Determination and Report.--Not later than 6 months after 
receiving any report prepared by a bilateral council established under 
section 4, the President, after receiving advice from the Advisory 
Committee for Trade Policy Negotiations established under section 
135(b) of the Trade Act of 1974, and taking into account--
            (1) the policy set forth in section 2, and
            (2) the advice of the International Trade Commission under 
        section 3(c),
shall make a determination on the feasibility and desirability of 
commencing formal negotiations regarding a free trade agreement with an 
eligible Pacific Rim country or countries to which the report relates, 
and shall submit a report to the Committee on Finance of the Senate and 
the Committee on Ways and Means of the House of Representatives on that 
determination.
    (b) Factors in Making Determination.--In making a determination on 
the feasibility and desirability of establishing a free trade area 
between the United States and an eligible country, the President shall 
consider whether that country--
            (1) is a member of the World Trade Organization;
            (2) has expressed an interest in negotiating a bilateral 
        free trade agreement with the United States;
            (3) has pursued substantive trade liberalization and 
        undertaken structural economic reforms in order to achieve an 
        economy governed by market forces, fiscal restraint, and 
        international trade disciplines and, as a result, has achieved 
        a largely open economy;
            (4) has demonstrated a broad affinity for United States 
        trade policy objectives and initiatives;
            (5) is an active participant in preparations of the General 
        Council of the World Trade Organization for the 3d Ministerial 
        Conference of the World Trade Organization which will be held 
        in the United States from November 30 to December 3, 1999, and 
        has demonstrated a commitment to United States objectives with 
        respect to an accelerated negotiating round of the World Trade 
        Organization;
            (6) is working consistently to eliminate export performance 
        requirements or local content requirements;
            (7) seeks the harmonization of domestic and international 
        standards in a manner that ensures transparency and 
        nondiscrimination among the member economies of APEC;
            (8) is increasing the economic opportunities available to 
        small- and medium-sized businesses through deregulation;
            (9) is working consistently to eliminate barriers to trade 
        in services;
            (10) provides national treatment for foreign direct 
        investment;
            (11) is working consistently to accommodate market access 
        objectives of the United States;
            (12) is working constructively to resolve trade disputes 
        with the United States and displays a clear intent to continue 
        to do so;
            (13) is a country whose bilateral trade relationship with 
        the United States will benefit from improved dispute settlement 
        mechanisms; and
            (14) is a country whose market for products and services of 
        the United States will be significantly enhanced by eliminating 
        substantially all tariff and nontariff barriers and structural 
        impediments to trade.

SEC. 6. CONSULTATIONS WITH CONGRESSIONAL COMMITTEES.

    The President shall consult with the Committee on Ways and Means of 
the House of Representatives and the Committee on Finance of the Senate 
on a regular basis with respect to the implementation of each of the 
provisions of this Act.

SEC. 7. ELIGIBLE PACIFIC RIM COUNTRIES.

    As used in this Act:
            (1) APEC.--The term ``APEC'' means the Asian Pacific 
        Economic Cooperation Forum.
            (2) Eligible pacific rim country.--The term ``eligible 
        Pacific Rim country'' means any country that is a WTO member 
        (as defined in section 2 of the Uruguay Round Agreements Act 
        (19 U.S.C. 3501) and is a member economy of APEC.
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