[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[S. 101 Introduced in Senate (IS)]







106th CONGRESS
  1st Session
                                 S. 101

To promote trade in United States agricultural commodities, livestock, 
   and value-added products, and to prepare for future bilateral and 
                    multilateral trade negotiations.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            January 19, 1999

Mr. Lugar (for himself, Mr. Roberts, Mr. Craig, Mr. Fitzgerald, and Mr. 
   Cochran) introduced the following bill; which was read twice and 
                  referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
To promote trade in United States agricultural commodities, livestock, 
   and value-added products, and to prepare for future bilateral and 
                    multilateral trade negotiations.

    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 ``United States Agricultural Trade Act 
of 1999''.

SEC. 2. OBJECTIVES FOR AGRICULTURAL NEGOTIATIONS.

    It is the sense of the Congress that--
    The principal agricultural trade negotiating objectives of the 
United States for future multilateral and bilateral trade negotiations, 
including the World Trade Organization, shall be to achieve, on an 
expedited basis, and to the maximum extent feasible, more open and fair 
conditions for trade in agricultural commodities by--
            (1) developing, strengthening, and clarifying rules for 
        agricultural trade, including disciplines on restrictive or 
        trade-distorting import and export practices, including--
                    (A) enhancing the operation and effectiveness of 
                the relevant Uruguay Round Agreements designed to 
                define, deter, and discourage the persistent use of 
                unfair trade practices; and
                    (B) enforcing and strengthening rules of the World 
                Trade Organization regarding--
                            (i) trade-distorting practices of state 
                        trading enterprises; and
                            (ii) the acts, practices, or policies of a 
                        foreign government which unreasonably--
                                    (I) require that substantial direct 
                                investment in the foreign country be 
                                made as a condition for carrying on 
                                business in the foreign country;
                                    (II) require that intellectual 
                                property be licensed to the foreign 
                                country or to any firm of the foreign 
                                country; or
                                    (III) delay or preclude 
                                implementation of a report of a dispute 
                                panel of the World Trade Organization;
            (2) increasing United States agricultural exports by 
        eliminating barriers to trade (including transparent and 
        nontransparent barriers);
            (3) eliminating other specific constraints to fair trade 
        and more open markets access in foreign markets, such as export 
        subsidies, quotas, and other nontariff import barriers;
            (4) developing, strengthening, and clarifying rules that 
        address practices that unfairly limit United States market 
        access opportunities or distort agricultural markets to the 
        detriment of the United States, including--
                    (A) unfair or trade-distorted activities of state 
                trading enterprises and other administrative mechanisms 
                that result in inadequate price transparency;
                    (B) unjustified restrictions or commercial 
                requirements affecting new technologies, including 
                biotechnology;
                    (C) unjustified sanitary or phytosanitary 
                restrictions; and
                    (D) restrictive rules in the establishment and 
                administration of tariff-rate quotas;
            (5) ensuring that there are reliable suppliers of 
        agricultural commodities in international commerce by 
        encouraging countries to treat foreign buyers no less favorably 
        than domestic buyers of the commodity or product involved; and
            (6) eliminating barriers for meeting the food needs of an 
        increasing world population through the use of biotechnology by 
        ensuring access to United States commodities derived from 
        biotechnology that is scientifically defensible, opposing the 
        establishment of projectionist trade measures disguised as 
        health standards, and protecting continual delays by other 
        countries in their approval processes--which constitute non-
        tariff trade barriers.

SEC. 3. DEFINITIONS.

    As used in this Act, the terms ``agricultural commodity'' and 
``United States agricultural commodity'' have the meanings provided in 
section 102 (1) and (7) of the Agricultural Trade Act of 1978, 
respectively.

SEC. 4. AGRICULTURAL COMMODITIES, LIVESTOCK, AND PRODUCTS EXEMPT FROM 
              SANCTIONS.

    (a) Definition.--Unilateral Economic Sanction. The term 
``unilateral economic sanction'' means any prohibition, restriction, or 
condition on economic activity, including economic assistance, with 
respect to a foreign country or foreign entity that is imposed by the 
United States for reasons of foreign policy or national security, 
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) Exemption.--
            (1) In general.--Subject to paragraph (2), and 
        notwithstanding any other provision of law, in the case of a 
        unilateral economic sanction imposed by the United States on 
        another country, the following shall be exempt from the 
        unilateral economic sanction--
                    (A) programs administered through Public Law 480 (7 
                U.S.C. 1701 et seq.);
                    (B) programs administered through section 416 of 
                the Agricultural Act of 1949 (7 U.S.C. 1431);
                    (C) the program administered through section 1113 
                of the Food Security Act of 1985 (7 U.S.C. 1736-1); and
                    (D) commercial sales and humanitarian assistance 
                involving agricultural commodities.
            (2) Determination by president.--If the President 
        determines that the exemption under paragraph (1) should not 
        apply to the unilateral economic sanction for reasons of 
        foreign policy or national security, the President may include 
        the activities described in paragraph (1) in the unilateral 
        economic sanction.
    (c) Current Sanctions.--
            (1) In general.--Subject to paragraph (2), the exemption 
        under subsection (b) shall apply to unilateral economic 
        sanctions that are in effect as of the date of the enactment of 
        this Act.
            (2) Presidential review.--The President shall, within 90 
        days of the date of enactment of this Act, review all 
        unilateral economic sanctions under this subsection to 
        determine whether the exemption under subsection (b) should 
        apply to the sanction.
            (3) Effective date.--The exemption under subsection (b) 
        shall become effective for unilateral economic sanctions that 
        are in effect on the date of enactment of this Act 180 days 
        after the date of enactment of this Act unless the President 
        has determined that the exemption should not apply to the 
        sanction.
    (d) Report.--
            (1) In general.--If the President determines that the 
        exemption under subsection (b) should not apply to a unilateral 
        economic sanction, the President shall provide a report to the 
        Committee on Agriculture in the House of Representatives, and 
        the Committee on Agriculture, Nutrition, and Forestry in the 
        Senate--
                    (A) in the case of a unilateral economic sanction 
                reviewed under subsection (c), within 15 days from the 
                date of the determination in paragraph (2) of that 
                subsection; and
                    (B) in the case of a unilateral economic sanction 
                that is imposed after the date of enactment of this 
                Act, at the time of the imposition of the sanction.
            (2) Contents of report.--The report shall contain--
                    (A) an explanation why, because of reasons of 
                foreign policy or national security, the exemption 
                should not apply to the unilateral economic sanction; 
                and
                    (B) an assessment by the Secretary of Agriculture--
                            (i) regarding export sales--
                                    (I) in the case of a sanction in 
                                effect as of the date of enactment of 
                                this Act, whether markets in the 
                                sanctioned country or countries present 
                                a substantial trade opportunity for 
                                export sales of an United States 
                                agricultural commodity; or
                                    (II) in the case of any other 
                                sanction, the extent to which any 
                                country or countries 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 an agricultural commodity;
                            (ii) regarding the effect on United States 
                        agricultural commodities--
                                    (I) in the case of a sanction in 
                                effect as of the date of enactment of 
                                this Act, the potential for exports of 
                                United States commodities in the 
                                sanctioned country or countries; and
                                    (II) in the case of any other 
                                sanction, the likelihood that exports 
                                of agricultural commodities from the 
                                United States will be affected by the 
                                unilateral economic sanction or by 
                                retaliation by any country to be 
                                sanctioned or likely to be sanctioned, 
                                and specific commodities which are most 
                                likely to be affected;
                            (iii) regarding producer income--
                                    (I) in the case of a sanction in 
                                effect as of the date of enactment of 
                                this Act, the potential for increasing 
                                the income of producers of the 
                                commodities involved; and
                                    (II) in the case of any other 
                                sanction, the likely effect on incomes 
                                of producers of the commodities 
                                involved;
                            (iv) regarding displacement of United 
                        States suppliers--
                                    (I) in the case of a sanction in 
                                effect as of the date of enactment of 
                                this Act, the potential for increased 
                                competition for United States suppliers 
                                of the agricultural commodity in 
                                countries that are not subject to a 
                                sanction; and
                                    (II) in the case of any other 
                                sanction, the extent to which the 
                                unilateral economic sanction would 
                                permit foreign suppliers to replace 
                                United States suppliers; and
                            (v) regarding the reputation of United 
                        States farmers as reliable suppliers--
                                    (I) in the case of a sanction in 
                                effect as of the date of enactment of 
                                this Act, whether removing the sanction 
                                would increase the reputation of United 
                                States farmers as reliable suppliers of 
                                agricultural commodities in general, 
                                and of specific commodities identified 
                                by the Secretary; and
                                    (II) in the case of any other 
                                sanction, the likely effect of the 
                                proposed sanction on the reputation of 
                                United States farmers as reliable 
                                suppliers of agricultural commodities 
                                in general, and of specific commodities 
                                identified by the Secretary.
    (e) Effective Date.--Except as provided in subsection (c)(3), this 
section shall become effective upon the date of enactment of this Act.

SEC. 5. CONGRESSIONAL OVERSIGHT AND CONSULTATION FOR AGRICULTURAL 
              NEGOTIATIONS.

    Section 161 of the Trade Act of 1974 (19 U.S.C. 2211) is amended by 
adding at the end a new subsection (d) that reads as follows:
    ``(d) Congressional Oversight Group for Agricultural 
Negotiations.--
            ``(1) There is established a Congressional Oversight Group 
        for Agricultural Negotiations (Oversight Group) that shall 
        provide oversight and guidance with respect to agricultural 
        trade policy and negotiation of agricultural trade issues.
                    ``(A) Subject to clauses (i) and (ii), the 
                Oversight Group shall consist of 3 members of the 
                Committee on Agriculture, Nutrition, and Forestry of 
                the Senate and 3 members of the Committee on 
                Agriculture of the House of Representatives.
                            ``(i) The President pro tempore of the 
                        Senate, upon the recommendation of the Chairman 
                        of the Committee on Agriculture, Nutrition, and 
                        Forestry, shall select two members from the 
                        majority party, and one member from the 
                        minority party, of the Senate.
                            ``(ii) The Speaker of the House of 
                        Representatives, upon the recommendation of the 
                        Chairman of the Committee on Agriculture, shall 
                        select 2 members from the majority party, and 
                        one member from the minority party, of the 
                        House of Representatives.
                    ``(B) Members of the House and Senate who are 
                selected as members of the Oversight Group shall be 
                accredited by the United States Trade Representative as 
                official advisers to the United States delegations to 
                international conferences, meetings, and negotiating 
                sessions relating to agricultural trade policy and 
                negotiation of agricultural trade issues.
            ``(2) All negotiating proposals by the United States and 
        negotiations that affect agricultural trade shall be reviewed 
        by the Oversight Group prior to an agreement being initiated by 
        the President.
            ``(3) All information about negotiating proposals by the 
        United States and foreign countries affecting agricultural 
        trade negotiations shall be made available to the Oversight 
        Group by the United States Trade Representative.
            ``(4) Within 60 days of enactment of this Act, the United 
        States Trade Representative shall establish guidelines for 
        ensuring the useful and timely supply of information to the 
        Oversight Group and the communication of the oversight and 
        guidance by the Oversight Group to the United States Trade 
        Representative.
                    ``(A) The guidelines shall establish procedures for 
                the United States Trade Representative to provide to 
                the Oversight Group--
                            ``(i) information regarding the principal 
                        multilateral and bilateral negotiating 
                        objectives affecting agricultural trade, and 
                        the progress being made toward their 
                        achievement;
                            ``(ii) information regarding the 
                        implementation, administration, and 
                        effectiveness of recently concluded 
                        multilateral and bilateral agricultural trade 
                        agreements and the resolution of agricultural 
                        trade disputes;
                            ``(iii) a schedule for an initial meeting, 
                        prior to the commencement of negotiations 
                        involving agricultural trade, between the 
                        Oversight Group and the United States Trade 
                        Representative, about the objectives of the 
                        negotiations;
                            ``(iv) written or oral briefings about the 
                        status of ongoing negotiations involving 
                        agricultural trade;
                            ``(v) prior to the President initialing the 
                        trade agreement, written or oral briefings 
                        about the results of negotiations involving 
                        agricultural trade;
                            ``(vi) information about changes in United 
                        States laws that are necessary as a result of 
                        the negotiations; and
                            ``(vii) a schedule and procedure for the 
                        Oversight Group to provide advice and guidance 
                        to the United States Trade Representative 
                        regarding--
                                    ``(I) the negotiations involving 
                                agricultural trade; and
                                    ``(II) changes in United States 
                                laws that are necessary as a result of 
                                the negotiations.
                    ``(B) The United States Trade Representative shall 
                meet with the Oversight Group at a minimum on a 
                quarterly basis, and as needed during a negotiation 
                involving agricultural trade.
                    ``(C) If determined necessary by either party, 
                consultations between the Oversight Group and the 
                United States Trade Representative may be conducted in 
                executive session.''.

SEC. 6. SALE OR BARTER OF FOOD ASSISTANCE.

    It is the sense of Congress that--
    The amendment to section 203 of the Agricultural Trade Development 
and Assistance Act of 1954 (Pub. L. 480) made in section 208 of the 
Federal Agriculture Improvement and Reform Act of 1996 (Pub. L. 101-
127) was intended to allow the sale or barter of United States 
agricultural commodities included in United States food assistance only 
within the recipient country or countries adjacent to the recipient 
country, unless such sale or barter within the recipient country or 
adjacent countries--
            (1) is not practicable; and
            (2) will not disrupt commercial markets for the 
        agricultural commodity involved.

SEC. 7. TREATMENT OF UNITED STATES AGRICULTURAL COMMODITIES, LIVESTOCK, 
              AND AGRICULTURAL PRODUCTS.

    (a) Identification Required.--Chapter 8 of title I of the Trade Act 
of 1974 is amended by adding at the end the following:

``SEC. 183. IDENTIFICATION OF COUNTRIES THAT ENGAGE IN UNFAIR TRADE 
              PRACTICES AFFECTING UNITED STATES AGRICULTURAL 
              COMMODITIES.

    ``(a) In General.--Not later than the date that is 30 days after 
the date on which the annual report is required to be submitted to 
congressional committees under section 181(b), the United States Trade 
Representative (hereafter in this section referred to as the `Trade 
Representative') shall identify--
            ``(1) those foreign countries that--
                    ``(A) deny fair and equitable market access to 
                United States agricultural commodities through 
                discriminatory nontariff trade barriers;
                    ``(B) employ unfair export subsidies that adversely 
                affect market share of United States exports of 
                agricultural commodities; or
                    ``(C) unreasonably delay or preclude implementation 
                of a report of a dispute panel of the World Trade 
                Organization; or
            ``(2) those foreign countries identified under paragraph 
        (1) that are determined by the Trade Representative to be 
        priority foreign countries.
    ``(b) Special Rules for Identification.--
            ``(1) Criteria.--In identifying priority foreign countries 
        under subsection (a)(2), the Trade Representative shall only 
        identify those foreign countries that--
                    ``(A) engage in or have the most onerous or 
                egregious acts, policies, or practices that deny fair 
                and equitable market access to United States 
                agricultural commodities;
                    ``(B) engage in discriminatory nontariff trade 
                barriers for the importation of United States 
                agricultural commodities that are not based on public 
                health concerns or cannot be substantiated by reliable 
                analytical methods;
                    ``(C) use unfair export subsidies;
                    ``(D) unreasonably delay or preclude implementation 
                of a report of a dispute panel of the World Trade 
                Organization;
                    ``(E) whose acts, policies, or practices described 
                in subparagraphs (A)-(D) have the greatest adverse 
                impact (actual or potential) on the relevant United 
                States agricultural commodities; or
                    ``(F) that are not negotiating in good faith about 
                adopting fair and equitable trade practices, or making 
                significant progress in bilateral or multilateral 
                negotiations, in regard to United States agricultural 
                commodities.
            ``(2) Consultation and consideration requirements.--In 
        identifying priority foreign countries under subsection (a)(2), 
        the Trade Representative shall--
                    ``(A) consult with the Secretary of Agriculture and 
                other appropriate officers of the Federal Government; 
                and
                    ``(B) take into account information from such 
                sources as may be available to the Trade Representative 
                and such information as may be submitted to the Trade 
                Representative by interested persons, including 
                information contained in reports submitted under 
                section 181(b) and petitions submitted under section 
                302.
            ``(3) Factual basis requirement.--The Trade Representative 
        may identify a foreign country under subsection (a)(1) only if 
        the Trade Representative finds that there is a factual basis 
        for identifying the foreign country as engaging in a trade 
        practice under subsection (a)(1).
            ``(4) Consideration of historical factors.--In identifying 
        foreign countries under paragraphs (1) and (2) of subsection 
        (a), the Trade Representative shall take into account--
                    ``(A) the history of agricultural trade relations 
                with the foreign country, including any previous 
                identification under subsection (a)(2); and
                    ``(B) the history of efforts of the United States, 
                and the response of the foreign country, to achieve 
                fair trade practices affecting trade in the United 
                States agricultural commodities.
    ``(c) Revocations and Additional Identifications.--
            ``(1) Authority to act at any time.--If information 
        available to the Trade Representative indicates that such 
        action is appropriate, the Trade Representative may at any 
        time--
                    ``(A) revoke the identification of any foreign 
                country as a priority foreign country under this 
                section; or
                    ``(B) identify any foreign country as a priority 
                foreign country under this section.
            ``(2) Revocation reports.--The Trade Representative shall 
        include in the semiannual report submitted to the Congress 
        under section 309(3) a detailed explanation of the reasons for 
        the revocation under paragraph (1) of the identification of any 
        foreign country as a priority foreign country under this 
        section.
    ``(d) Definitions.--For purposes of this section, the terms 
`agricultural commodity' and `United States agricultural commodity' 
have the meanings provided in section 102 (1) and (7) of the 
Agricultural Trade Act of 1978, respectively.
    ``(e) Publication.--The Trade Representative shall publish in the 
Federal Register a list of foreign countries identified under 
subsection (a) and shall make such revisions to the list as may be 
required by reason of the action under subsection (c).
    ``(f) Annual Report.--The Trade Representative shall, not later 
than the date by which countries are identified under subsection (a), 
transmit to the Committee on Ways and Means and the Committee on 
Agriculture of the House of Representatives and the Committee on 
Finance and the Committee on Agriculture, Nutrition, and Forestry of 
the Senate, a report on the actions taken under this section during the 
12 months preceding such report, and the reasons for such actions, 
including a description of progress made in achieving fair and 
equitable market access for United States agricultural commodities.''.
    (b) Remedial Actions to Unfair Trade Practices Involving United 
States Agricultural Commodities, Livestock, and Agricultural 
Products.--
            (1) Section 301 of the Trade Act of 1974 (19 U.S.C. 2411) 
        is amended--
                    (A) in subsection (a)(1) by inserting ``section 
                183(a) or'' after ``determines under'';
                    (B) in subsection (b) by inserting ``section 183(a) 
                or'' after ``determines under'';
                    (C) in subsection (c)(1)--
                            (i) in subparagraph (C) by striking 
                        ``section; or'' and inserting ``section;''
                            (ii) in subparagraph (D) by striking 
                        ``paragraph (4).'' and inserting ``paragraph 
                        (4); or''; and
                            (iii) by adding a new subparagraph (E) as 
                        follows:
                    ``(E) with respect to an investigation of a country 
                identified under section 183(a)--
                                    ``(I) take any action authorized 
                                under this subsection; and
                                    ``(II) to request that the 
                                Secretary of Agriculture target the use 
                                of existing United States export 
                                programs that are administered within 
                                the Department of Agriculture to the 
                                commodity that is subject to the unfair 
                                trade practice by the priority foreign 
                                country.''.
    (c) Clerical Amendment.--The table of contents for the Trade Act of 
1974 is amended by inserting after the item relating to section 182 the 
following:

``Sec. 183. Identification of Countries That Engage in Unfair Trade 
                            Practices Affecting United States 
                            Agricultural Commodities.''.
    (d) Investigation Required.--Subparagraph (A) of section 302(b)(2) 
of the Trade Act of 1974 (19 U.S.C. 2412(b)(2)(A)) is amended by 
inserting ``or 183(a)(2)'' after ``section 182(a)(2)'' in the matter 
preceding clause (i).
    (e) Conforming Amendments.--
            (1) Subparagraph (D) of section 302(b)(2) of such Act is 
        amended by inserting ``concerning intellectual property rights 
        that is'' after ``any investigation''.
            (2) Subparagraph (B) of section 304(a)(3) of such Act is 
        amended--
                    (A) by striking ``or'' at the end of clause (ii);
                    (B) by inserting ``or'' at the end of clause (iii); 
                and
                    (C) by inserting immediately after clause (iii) the 
                following new clause:
                            ``(iv) the foreign country involved in the 
                        investigation is making substantial progress in 
                        drafting or implementing legislative or 
                        administrative measures that ensure the country 
                        engages in fair and equitable trade practices 
                        affecting United States agricultural 
                        commodities.''.

SEC. 8. REALLOCATION OF UNOBLIGATED FUNDS.

    (a) In General.--The Secretary of Agriculture shall, on or about 
April 1 and July 1 of each fiscal year determine whether unobligated 
funds exist out of funds made available for the fiscal year for the 
Export Enhancement Program.
    (b) Transfer to Food Assistance.--The Secretary may, on or about 
April 1 and July 1 of each fiscal year, with respect to any unobligated 
funds identified under subsection (a), apply the funds to--
            (1) one or more of the programs administered through Public 
        Law 480 (7 U.S.C. 1701 et seq.);
            (2) the purchase of agricultural commodities for donation 
        through one of the programs administered through section 416 of 
        the Agricultural Act of 1949 (7 U.S.C. 1431); and
            (3) programs administered through Title II of the Trade Act 
        of 1978 (7 U.S.C. 5621-5641).
    (c) Use Within Same Fiscal Year.--All funds identified under 
subsection (a) shall be obligated within the same fiscal year. Such 
funds may not be transferred under subsection (b) in a fiscal year 
subsequent to the fiscal year of the determination in subsection (a).
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