[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[S. 566 Introduced in Senate (IS)]







106th CONGRESS
  1st Session
                                 S. 566

  To amend the Agricultural Trade Act of 1978 to exempt agricultural 
   commodities, livestock, and value-added products from unilateral 
 economic sanctions, to prepare for future bilateral and multilateral 
 trade negotiations affecting United States agriculture, and for other 
                               purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             March 8, 1999

   Mr. Lugar introduced the following bill; which was read twice and 
   referred to the Committee on Agriculture, Nutrition, and Forestry

_______________________________________________________________________

                                 A BILL


 
  To amend the Agricultural Trade Act of 1978 to exempt agricultural 
   commodities, livestock, and value-added products from unilateral 
 economic sanctions, to prepare for future bilateral and multilateral 
 trade negotiations affecting United States agriculture, 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 ``Agricultural Trade Freedom Act''.

SEC. 2. DEFINITIONS.

    In this Act, the terms ``agricultural commodity'' and ``United 
States agricultural commodity'' have the meanings given the terms in 
section 102 of the Agricultural Trade Act of 1978 (7 U.S.C. 5602).

SEC. 3. AGRICULTURAL COMMODITIES, LIVESTOCK, AND PRODUCTS EXEMPT FROM 
              SANCTIONS.

    Title IV of the Agricultural Trade Act of 1978 (7 U.S.C. 5661 et 
seq.) is amended by adding at the end the following:

``SEC. 418. AGRICULTURAL COMMODITIES, LIVESTOCK, AND PRODUCTS EXEMPT 
              FROM SANCTIONS.

    ``(a) Definitions.--In this section:
            ``(1) Current sanction.--The term `current sanction' means 
        a unilateral economic sanction that is in effect on the date of 
        enactment of the Agricultural Trade Freedom Act.
            ``(2) New sanction.--The term `new sanction' means a 
        unilateral economic sanction that becomes effective after the 
        date of enactment of that Act.
            ``(3) 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 paragraphs (2) and (3) and 
        notwithstanding any other provision of law, agricultural 
        commodities made available as a result of commercial sales 
        shall be exempt from a unilateral economic sanction imposed by 
        the United States on another country.
            ``(2) Exclusions.--Paragraph (1) shall not apply to 
        agricultural commodities made available as a result of programs 
        carried out under--
                    ``(A) the Agricultural Trade Development and 
                Assistance Act of 1954 (7 U.S.C. 1691 et seq.);
                    ``(B) section 416 of the Agricultural Act of 1949 
                (7 U.S.C. 1431);
                    ``(C) the Food for Progress Act of 1985 (7 U.S.C. 
                1736o); or
                    ``(D) the Agricultural Trade Act of 1978 (7 U.S.C. 
                5601 et seq.).
            ``(3) Determination by president.--If the President 
        determines that the exemption provided under paragraph (1) 
        should not apply to a unilateral economic sanction for reasons 
        of foreign policy or national security, the President may 
        include the agricultural commodities made available as a result 
        of 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)(1) shall apply to a current sanction.
            ``(2) Presidential review.--Not later than 90 days after 
        the date of enactment of the Agricultural Trade Freedom Act, 
        the President shall review each current sanction to determine 
        whether the exemption under subsection (b)(1) should apply to 
        the current sanction.
            ``(3) Application.--The exemption under subsection (b)(1) 
        shall apply to a current sanction beginning on the date that is 
        180 days after the date of enactment of the Agricultural Trade 
        Freedom Act unless the President determines that the exemption 
        should not apply to the current sanction for reasons of foreign 
        policy or national security.
    ``(d) Report.--
            ``(1) In general.--If the President determines that the 
        exemption under subsection (b)(2) or (c)(2) should not apply to 
a unilateral economic sanction, the President shall submit a report to 
the Committee on Agriculture of the House of Representatives and the 
Committee on Agriculture, Nutrition, and Forestry of the Senate--
                    ``(A) in the case of a current sanction, not later 
                than 15 days after the date of the determination under 
                subsection (c)(2); and
                    ``(B) in the case of a new sanction, on the date of 
                the imposition of the new sanction.
            ``(2) Contents of report.--The report shall contain--
                    ``(A) an explanation of the foreign policy or 
                national security reasons for which the exemption 
                should not apply to the unilateral economic sanction; 
                and
                    ``(B) an assessment by the Secretary--
                            ``(i) regarding export sales--
                                    ``(I) in the case of a current 
                                sanction, whether markets in the 
                                sanctioned country or countries present 
                                a substantial trade opportunity for 
                                export sales of a United States 
                                agricultural commodity; or
                                    ``(II) in the case of a new 
                                sanction, the extent to which any 
                                country or countries to be sanctioned 
                                or likely to be sanctioned are markets 
                                that accounted for, during the 
                                preceding calendar year, more than 3 
                                percent of export sales of a United 
                                States agricultural commodity;
                            ``(ii) regarding the effect on United 
                        States agricultural commodities--
                                    ``(I) in the case of a current 
                                sanction, the potential for export 
                                sales of United States agricultural 
                                commodities in the sanctioned country 
                                or countries; and
                                    ``(II) in the case of a new 
                                sanction, the likelihood that exports 
                                of United States agricultural 
                                commodities will be affected by the new 
                                sanction or by retaliation by any 
                                country to be sanctioned or likely to 
                                be sanctioned, including a description 
                                of specific United States agricultural 
                                commodities that are most likely to be 
                                affected;
                            ``(iii) regarding the income of 
                        agricultural producers--
                                    ``(I) in the case of a current 
                                sanction, the potential for increasing 
                                the income of producers of the United 
                                States agricultural commodities 
                                involved; and
                                    ``(II) in the case of a new 
                                sanction, the likely effect on incomes 
                                of producers of the agricultural 
                                commodities involved;
                            ``(iv) regarding displacement of United 
                        States suppliers--
                                    ``(I) in the case of a current 
                                sanction, the potential for increased 
                                competition for United States suppliers 
                                of the agricultural commodity in 
                                countries that are not subject to the 
                                current sanction; and
                                    ``(II) in the case of a new 
                                sanction, the extent to which the new 
                                sanction would permit foreign suppliers 
                                to replace United States suppliers; and
                            ``(v) regarding the reputation of United 
                        States agricultural producers as reliable 
                        suppliers--
                                    ``(I) in the case of a current 
                                sanction, whether removing the sanction 
                                would increase the reputation of United 
                                States producers as reliable suppliers 
                                of agricultural commodities in general, 
                                and of specific agricultural 
                                commodities identified by the 
                                Secretary; and
                                    ``(II) in the case of a new 
                                sanction, the likely effect of the 
                                proposed sanction on the reputation of 
                                United States producers as reliable 
                                suppliers of agricultural commodities 
                                in general, and of specific 
                                agricultural commodities identified by 
                                the Secretary.''.

SEC. 4. OBJECTIVES FOR AGRICULTURAL NEGOTIATIONS.

    It is the sense of Congress that the principal agricultural trade 
negotiating objectives of the United States for future multilateral and 
bilateral trade negotiations (including negotiations involving the 
World Trade Organization) should be to achieve, on an expedited basis 
and to the maximum extent practicable, more open and fair conditions 
for trade in agricultural commodities by--
            (1) developing, strengthening, and clarifying rules for 
        trade in agricultural commodities, including eliminating or 
        reducing restrictive or trade-distorting import and export 
        practices, including--
                    (A) enhancing the operation and effectiveness of 
                the relevant provisions of the 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 similar public and 
                        private trading enterprises; and
                            (ii) the acts, practices, or policies of a 
                        foreign government that 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 the export of United States agricultural 
        commodities by eliminating barriers to trade (including 
        transparent and nontransparent barriers);
            (3) eliminating other specific constraints to fair trade 
        (such as export subsidies, quotas, and other nontariff import 
        barriers and more open market access) in foreign markets for 
        United States agricultural commodities;
            (4) developing, strengthening, and clarifying rules that 
        address practices that unfairly limit United States market 
        access opportunities or distort markets for United States 
        agricultural commodities to the detriment of the United States, 
        including--
                    (A) unfair or trade-distorting activities of state 
                trading enterprises, and similar public and private 
                trading enterprises, 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 nontariff trade barriers for meeting the 
        food needs of an increasing world population through the use of 
        biotechnology by--
                    (A) ensuring market access to United States 
                agricultural commodities derived from biotechnology 
                that is scientifically defensible;
                    (B) opposing the establishment of protectionist 
                trade measures disguised as health standards; and
                    (C) protesting continual delays by other countries 
                in their approval processes.

SEC. 5. SALE OR BARTER OF FOOD ASSISTANCE.

    It is the sense of Congress that the amendments to section 203 of 
the Agricultural Trade Development and Assistance Act of 1954 (7 U.S.C. 
1723) made by section 208 of the Federal Agriculture Improvement and 
Reform Act of 1996 (Public Law 104-127; 110 Stat. 954) were intended to 
allow the sale or barter of United States agricultural commodities in 
connection with United States food assistance only within the recipient 
country or countries adjacent to the recipient country, unless--
            (1) the sale or barter within the recipient country or 
        adjacent countries is not practicable; and
            (2) the sale or barter within countries other than the 
        recipient country or adjacent countries will not disrupt 
        commercial markets for the agricultural commodity involved.

SEC. 6. SENSE OF CONGRESS REGARDING RELIEF FROM UNFAIR TRADE PRACTICES 
              AFFECTING UNITED STATES AGRICULTURAL COMMODITIES.

    (a) Findings.--Congress finds that--
            (1) often dispute settlement proceedings to resolve unfair 
        trade practices of foreign countries that restrict market 
        access of United States agricultural commodities are 
        inadequate, time consuming, and cumbersome; and
            (2) practices that unfairly limit market access 
        opportunities for United States agricultural commodities 
        through export subsidies and import barriers include--
                    (A) unfair or trade-distorting activities of state 
                trading enterprises, and similar public and private 
                trading enterprises, that result in inadequate price 
                transparency;
                    (B) unjustified restrictions or commercial 
                requirements affecting new technologies, including 
                biotechnology, that are not scientifically defensible;
                    (C) unjustified sanitary or phytosanitary 
                restrictions;
                    (D) restrictive rules for the establishment and 
                administration of tariff-rate quotas;
                    (E) requirements that substantial direct investment 
                in the foreign country be made as a condition for 
                carrying on business in the foreign country; and
                    (F) requirements that intellectual property be 
                licensed to the foreign country or to any firm of the 
                foreign country.
    (b) Sense of Congress.--It is the sense of Congress that the 
Secretary of Agriculture should aggressively use the authorities 
granted to the Secretary under section 302 of the Agricultural Trade 
Act of 1978 (7 U.S.C. 5652), which provides the Secretary with the 
authority to use programs of the Department of Agriculture for the 
agricultural commodity involved when there is undue delay in a dispute 
resolution proceeding of an international trade agreement (such as an 
agreement administered by the World Trade Organization).

SEC. 7. MICRONUTRIENT FORTIFICATION PILOT PROGRAM.

    Section 415 of the Agricultural Trade Development and Assistance 
Act of 1954 (7 U.S.C. 1736g-2) is repealed.

SEC. 8. TECHNICAL CORRECTIONS.

    (a) Administrative Provisions.--Section 216 of the Federal 
Agriculture Improvement and Reform Act of 1996 (Public Law 104-127; 110 
Stat. 957) is amended--
            (1) in paragraph (2), by striking ``subsection (c)'' and 
        inserting ``subsection (b)'';
            (2) in paragraph (3), by striking ``subsection (d)'' and 
        inserting ``subsection (c)'';
            (3) in paragraph (4), by striking ``subsection (g)(2)'' and 
        inserting ``subsection (f)(2)''; and
            (4) in paragraph (5), by striking ``subsection (h)'' and 
        inserting ``subsection (g)''.
    (b) Emerging Markets.--Section 1542(d)(1)(A)(i) of the Food, 
Agriculture, Conservation, and Trade Act of 1990 (Public Law 101-624; 7 
U.S.C. 5622 note) is amended by striking ``such democracies'' and 
inserting ``the markets''.
    (c) Trade Compensation and Assistance Programs.--Section 417(a) of 
the Agricultural Trade Act of 1978 (7 U.S.C. 5677(a)) is amended by 
inserting ``of an agricultural commodity'' after ``causes exports''.
    (d) Effective Date.--The amendments made by this section take 
effect on April 4, 1996.
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