[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[S. 1746 Introduced in Senate (IS)]







106th CONGRESS
  1st Session
                                S. 1746

To authorize negotiation of a free trade agreement with the Republic of 
 Turkey, to provide authority for the implementation of the agreement, 
                        and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            October 18, 1999

 Mr. Moynihan introduced the following bill; which was read twice and 
                  referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
To authorize negotiation of a free trade agreement with the Republic of 
 Turkey, to provide authority for the implementation of the agreement, 
                        and for other purposes.

    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-Turkey Free Trade 
Agreement Act of 1999''.

SEC. 2. FINDINGS.

    Congress makes the following findings:
            (1) The Republic of Turkey (in this Act referred to as 
        ``Turkey'') has played an important strategic, political, and 
        economic role in Europe, Asia, and the Middle East since its 
        founding in 1923 by Mustafa Kemal ``Ataturk'' following the 
        collapse of the 600-year Ottoman Empire.
            (2) The friendship shared between the United States and 
        Turkey dates to the late 18th century and was consecrated by 
        the Treaty of Commerce and Navigation between the United States 
        and the Ottoman Empire in 1830.
            (3) The United States reaffirmed its relationship with 
        Turkey by entering into the Treaty of Commerce and Navigation 
        of 1929.
            (4) The United States and Turkey have subsequently entered 
        into over 60 treaties, memoranda of understanding, and other 
        agreements on a broad range of issues, including a bilateral 
        investment treaty (1986), a bilateral tax treaty (1998), and a 
        trade and investment framework agreement (1999), as evidence of 
        their strong friendship.
            (5) Turkey is located in the strategic corridor between 
        Europe and Asia, bordering the Black Sea and the Mediterranean 
        Sea.
            (6) Turkey has been a strategic partner of the United 
        States since it joined the allies at the end of World War II.
            (7) The strategic alliance between Turkey and the United 
        States was cemented by--
                    (A) the agreement of July 12, 1947 implementing the 
                Truman doctrine;
                    (B) Turkey's membership in the North Atlantic 
                Treaty Organization (NATO) in 1952; and
                    (C) the United States-Turkey Agreement for 
                Cooperation on Defense and Economy of 1980.
            (8) Turkey is also an important industrialized economy and 
        was a founding member of the Organization for Economic 
        Cooperation and Development (OECD) and the United Nations.
            (9) Turkey has made significant progress since the 1980's 
        in liberalizing its economy and integrating with the global 
        economy.
            (10) Turkey has joined other nations in advocating an open 
        trading system through its membership in the General Agreement 
        on Tariffs and Trade and the World Trade Organization.
            (11) Despite the deep friendship between the United States 
        and Turkey, their trading relationship remains small.
            (12) In 1998, United States merchandise exports to Turkey 
        reached $3,500,000,000.
            (13) In 1998, United States imports from Turkey totaled 
        $2,500,000,000 or less than 0.3 percent of United States total 
        imports.
            (14) A free trade agreement between the United States and 
        Turkey would greatly benefit both the United States and Turkey 
        by expanding their commercial ties.

SEC. 3. NEGOTIATING OBJECTIVES FOR A UNITED STATES-TURKEY FREE TRADE 
              AGREEMENT.

    The overall trade negotiating objectives of the United States with 
respect to a United States-Turkey Free Trade Agreement are to obtain--
            (1) more open, equitable, and reciprocal market access 
        between the United States and Turkey; and
            (2) the reduction or elimination of barriers and other 
        trade-distorting policies and practices that inhibit trade 
        between the United States and Turkey.

SEC. 4. NEGOTIATION OF A UNITED STATES-TURKEY FREE TRADE AGREEMENT.

    (a) In General.--Subject to sections 5 and 6, the President is 
authorized to enter into an agreement described in subsection (c). The 
provisions of section 151(c) of the Trade Act of 1974 (19 U.S.C. 
2191(c)) shall apply with respect to a bill to implement such agreement 
if such agreement is entered into on or before December 31, 2005.
    (b) Tariff Proclamation Authority.--
            (1) In general.--The President is authorized to proclaim--
                    (A) such modification or continuation of any 
                existing duty,
                    (B) such continuance of existing duty-free or 
                excise treatment, or
                    (C) such additional duties
        as the President determines to be required or appropriate to 
        carry out the trade agreement described in subsection (c).
            (2) Limitations.--No proclamation may be made under 
        paragraph (1) that--
                    (A) reduces any rate of duty (other than a rate of 
                duty that does not exceed 5 percent ad valorem on the 
                date of enactment of this Act) to a rate which is less 
                than 50 percent of the rate of such duty that applies 
                on such date of enactment;
                    (B) provides for a reduction of duty on an article 
                to take effect on a date that is more than 10 years 
                after the first reduction that is proclaimed to carry 
out a trade agreement with respect to such article; or
                    (C) increases any rate of duty above the rate that 
                applied on the date of enactment of this Act.
            (3) Aggregate reduction; exemption from staging.--
                    (A) Aggregate reduction.--Except as provided in 
                subparagraph (B), the aggregate reduction in the rate 
                of duty on any article which is in effect on any day 
                pursuant to a trade agreement entered into under 
                paragraph (1) shall not exceed the aggregate reduction 
                which would have been in effect on such day if--
                            (i) a reduction of 3 percent ad valorem or 
                        a reduction of one-tenth of the total 
                        reduction, whichever is greater, had taken 
                        effect on the effective date of the first 
                        reduction proclaimed under paragraph (1) to 
                        carry out such agreement with respect to such 
                        article; and
                            (ii) a reduction equal to the amount 
                        applicable under clause (i) had taken effect at 
                        1-year intervals after the effective date of 
                        such first reduction.
                    (B) Exemption from staging.--No staging under 
                subparagraph (A) is required with respect to a rate 
                reduction that is proclaimed under paragraph (1) for an 
                article of a kind that is not produced in the United 
                States. The United States International Trade 
                Commission shall advise the President of the identity 
                of articles that may be exempted from staging under 
                this subparagraph.
            (4) Rounding.--If the President determines that such action 
        will simplify the computation of reductions under paragraph 
        (3), the President may round an annual reduction by the lesser 
        of--
                    (A) the difference between the reduction without 
                regard to this paragraph and the next lower whole 
                number; or
                    (B) one-half of 1 percent ad valorem.
            (5) Other limitations.--A rate of duty reduction or 
        increase that may not be proclaimed by reason of paragraph (2) 
        may take effect only if a provision authorizing such reduction 
        or increase is included within an implementing bill provided 
        for under section 6(c) and that bill is enacted into law.
    (c) Agreement Described.--An agreement described in this subsection 
means a bilateral agreement between the United States and Turkey that 
provides for the reduction and ultimate elimination of tariffs and 
nontariff barriers to trade and the eventual establishment of a free 
trade agreement between the United States and Turkey.

SEC. 5. CONSULTATIONS WITH CONGRESS ON NEGOTIATIONS OF A UNITED STATES-
              TURKEY FREE TRADE AGREEMENT.

    Before entering into any trade agreement under section 4 (including 
immediately before initialing an agreement), the President shall 
consult closely and on a timely basis on the nature of the agreement 
and the extent to which it will achieve the purposes of this Act with--
            (1) the Committee on Ways and Means of the House of 
        Representatives and the Committee on Finance of the Senate;
            (2) the congressional advisers for trade policy and 
        negotiations appointed under section 161 of the Trade Act of 
        1974 (19 U.S.C. 2211); and
            (3) each other committee of the House of Representatives 
        and the Senate, and each joint committee of Congress, which has 
        jurisdiction over legislation involving subject matters that 
        would be affected by the trade agreement.

SEC. 6. IMPLEMENTATION OF UNITED STATES-TURKEY FREE TRADE AGREEMENT.

    (a) Notification and Submission.--Any agreement entered into under 
section 4 shall enter into force with respect to the United States if 
(and only if)--
            (1) the President, at least 60 calendar days before the day 
        on which the President enters into the trade agreement, 
        notifies the House of Representatives and the Senate of the 
        President's intention to enter into the agreement, and promptly 
        thereafter publishes notice of such intention in the Federal 
        Register;
            (2) within 60 calendar days after entering into the 
        agreement, the President submits to Congress a description of 
        those changes to existing laws that the President considers 
        would be required in order to bring the United States into 
        compliance with the agreement;
            (3) after entering into the agreement, the President 
        submits a copy of the final legal text of the agreement, 
        together with--
                    (A) a draft of an implementing bill described in 
                subsection (c);
                    (B) a statement of any administrative action 
                proposed to implement the trade agreement; and
                    (C) the supporting information described in 
                subsection (b); and
            (4) the implementing bill is enacted into law.
    (b) Supporting Information.--The supporting information required 
under subsection (a)(3)(C) consists of--
            (1) an explanation as to how the implementing bill and 
        proposed administrative action will change or affect existing 
        law; and
            (2) a statement--
                    (A) asserting that the agreement makes progress in 
                achieving the objectives of this Act; and
                    (B) setting forth the reasons of the President 
                regarding--
                            (i) how and to what extent the agreement 
                        makes progress in achieving the objectives 
                        referred to in subparagraph (A);
                            (ii) whether and how the agreement changes 
                        provisions of an agreement previously 
                        negotiated;
                            (iii) how the agreement serves the 
                        interests of United States commerce; and
                            (iv) any proposed administrative action.
    (c) Bills Qualifying for Trade Agreement Approval Procedures.--The 
provisions of section 151 of the Trade Act of 1974 apply to an 
implementing bill submitted pursuant to subsection (b) that contains 
only--
            (1) provisions that approve a trade agreement entered into 
        under section 4 that achieves the negotiating objectives set 
        forth in section 3 and the statement of administrative action 
        (if any) proposed to implement such trade agreement;
            (2) provisions that are--
                    (A) necessary to implement such agreement; or
                    (B) otherwise related to the implementation, 
                enforcement, and adjustment to the effects of such 
                trade agreement; and
            (3) provisions necessary for purposes of complying with 
        section 252 of the Balanced Budget and Emergency Deficit 
        Control Act of 1985 in implementing the applicable trade 
        agreement.

SEC. 7. CONSIDERATION OF IMPLEMENTING BILL.

    (a) Congressional Consideration of Implementing Bill.--When the 
President submits to Congress a bill to implement the trade agreement 
as described in section 6(c), the bill shall be introduced and 
considered pursuant to the provisions of section 151 of the Trade Act 
of 1974 (19 U.S.C. 2191).
    (b) Conforming Amendments.--Section 151 of the Trade Act of 1974 
(19 U.S.C. 2191) is amended--
            (1) in subsection (b)(1), by inserting ``section 6 of the 
        United States-Turkey Free Trade Agreement Act of 1999'' after 
        ``the Omnibus Trade and Competitiveness Act of 1988,''; and
            (2) in subsection (c)(1), by inserting ``or under section 6 
        of the United States-Turkey Free Trade Agreement Act of 1999,'' 
        after ``the Uruguay Round Agreements Act,''.
                                 <all>