[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3005 Engrossed in House (EH)]

  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
107th CONGRESS
  1st Session
                                H. R. 3005

_______________________________________________________________________

                                 AN ACT


 
To extend trade authorities procedures with respect to reciprocal trade 
                              agreements.

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

SECTION 1. SHORT TITLE AND FINDINGS.

    (a) Short Title.--This Act may be cited as the ``Bipartisan Trade 
Promotion Authority Act of 2001''.
    (b) Findings.--The Congress makes the following findings:
            (1) The expansion of international trade is vital to the 
        national security of the United States. Trade is critical to 
        the economic growth and strength of the United States and to 
        its leadership in the world. Stable trading relationships 
        promote security and prosperity. Trade agreements today serve 
        the same purposes that security pacts played during the Cold 
        War, binding nations together through a series of mutual rights 
        and obligations. Leadership by the United States in 
        international trade fosters open markets, democracy, and peace 
        throughout the world.
            (2) The national security of the United States depends on 
        its economic security, which in turn is founded upon a vibrant 
        and growing industrial base. Trade expansion has been the 
        engine of economic growth. Trade agreements maximize 
        opportunities for the critical sectors and building blocks of 
        the economy of the United States, such as information 
        technology, telecommunications and other leading technologies, 
        basic industries, capital equipment, medical equipment, 
        services, agriculture, environmental technology, and 
        intellectual property. Trade will create new opportunities for 
        the United States and preserve the unparalleled strength of the 
        United States in economic, political, and military affairs. The 
        United States, secured by expanding trade and economic 
        opportunities, will meet the challenges of the twenty-first 
        century.

SEC. 2. TRADE NEGOTIATING OBJECTIVES.

    (a) Overall Trade Negotiating Objectives.--The overall trade 
negotiating objectives of the United States for agreements subject to 
the provisions of section 3 are--
            (1) to obtain more open, equitable, and reciprocal market 
        access;
            (2) to obtain the reduction or elimination of barriers and 
        distortions that are directly related to trade and that 
        decrease market opportunities for United States exports or 
        otherwise distort United States trade;
            (3) to further strengthen the system of international 
        trading disciplines and procedures, including dispute 
        settlement;
            (4) to foster economic growth, raise living standards, and 
        promote full employment in the United States and to enhance the 
        global economy;
            (5) to ensure that trade and environmental policies are 
        mutually supportive and to seek to protect and preserve the 
        environment and enhance the international means of doing so, 
        while optimizing the use of the world's resources;
            (6) to promote respect for worker rights and the rights of 
        children consistent with core labor standards of the 
        International Labor Organization (as defined in section 11(2)) 
        and an understanding of the relationship between trade and 
        worker rights; and
            (7) to seek provisions in trade agreements under which 
        parties to those agreements strive to ensure that they do not 
        weaken or reduce the protections afforded in domestic 
        environmental and labor laws as an encouragement for trade.
    (b) Principal Trade Negotiating Objectives.--
            (1) Trade barriers and distortions.--The principal 
        negotiating objectives of the United States regarding trade 
        barriers and other trade distortions are--
                    (A) to expand competitive market opportunities for 
                United States exports and to obtain fairer and more 
                open conditions of trade by reducing or eliminating 
                tariff and nontariff barriers and policies and 
                practices of foreign governments directly related to 
                trade that decrease market opportunities for United 
                States exports or otherwise distort United States 
                trade; and
                    (B) to obtain reciprocal tariff and nontariff 
                barrier elimination agreements, with particular 
                attention to those tariff categories covered in section 
                111(b) of the Uruguay Round Agreements Act (19 U.S.C. 
                3521(b)).
            (2) Trade in services.--The principal negotiating objective 
        of the United States regarding trade in services is to reduce 
        or eliminate barriers to international trade in services, 
        including regulatory and other barriers that deny national 
        treatment and market access or unreasonably restrict the 
        establishment or operations of service suppliers.
            (3) Foreign investment.--The principal negotiating 
        objective of the United States regarding foreign investment is 
        to reduce or eliminate artificial or trade-distorting barriers 
        to trade-related foreign investment and, recognizing that 
        United States law on the whole provides a high level of 
        protection for investment, consistent with or greater than the 
        level required by international law, to secure for investors 
        important rights comparable to those that would be available 
        under United States legal principles and practice, by--
                    (A) reducing or eliminating exceptions to the 
                principle of national treatment;
                    (B) freeing the transfer of funds relating to 
                investments;
                    (C) reducing or eliminating performance 
                requirements, forced technology transfers, and other 
                unreasonable barriers to the establishment and 
                operation of investments;
                    (D) seeking to establish standards for 
                expropriation and compensation for expropriation, 
                consistent with United States legal principles and 
                practice;
                    (E) providing meaningful procedures for resolving 
                investment disputes;
                    (F) seeking to improve mechanisms used to resolve 
                disputes between an investor and a government through--
                            (i) mechanisms to eliminate frivolous 
                        claims; and
                            (ii) procedures to ensure the efficient 
                        selection of arbitrators and the expeditious 
                        disposition of claims;
                    (G) providing an appellate or similar review 
                mechanism to correct manifestly erroneous 
                interpretations of law; and
                    (H) ensuring the fullest measure of transparency in 
                the dispute settlement mechanism, to the extent 
                consistent with the need to protect information that is 
                classified or business confidential, by--
                            (i) ensuring that all requests for dispute 
                        settlement are promptly made public;
                            (ii) ensuring that--
                                    (I) all proceedings, submissions, 
                                findings, and decisions are promptly 
                                made public;
                                    (II) all hearings are open to the 
                                public; and
                            (iii) establishing a mechanism for 
                        acceptance of amicus curiae submissions from 
                        businesses, unions, and nongovernmental 
                        organizations.
            (4) Intellectual property.--The principal negotiating 
        objectives of the United States regarding trade-related 
        intellectual property are--
                    (A) to further promote adequate and effective 
                protection of intellectual property rights, including 
                through--
                            (i)(I) ensuring accelerated and full 
                        implementation of the Agreement on Trade-
                        Related Aspects of Intellectual Property Rights 
                        referred to in section 101(d)(15) of the 
                        Uruguay Round Agreements Act (19 U.S.C. 
                        3511(d)(15)), particularly with respect to 
                        meeting enforcement obligations under that 
                        agreement; and
                            (II) ensuring that the provisions of any 
                        multilateral or bilateral trade agreement 
                        governing intellectual property rights that is 
                        entered into by the United States reflect a 
                        standard of protection similar to that found in 
                        United States law;
                            (ii) providing strong protection for new 
                        and emerging technologies and new methods of 
                        transmitting and distributing products 
                        embodying intellectual property;
                            (iii) preventing or eliminating 
                        discrimination with respect to matters 
                        affecting the availability, acquisition, scope, 
                        maintenance, use, and enforcement of 
                        intellectual property rights;
                            (iv) ensuring that standards of protection 
                        and enforcement keep pace with technological 
                        developments, and in particular ensuring that 
                        rightholders have the legal and technological 
                        means to control the use of their works through 
                        the Internet and other global communication 
                        media, and to prevent the unauthorized use of 
                        their works; and
                            (v) providing strong enforcement of 
                        intellectual property rights, including through 
                        accessible, expeditious, and effective civil, 
                        administrative, and criminal enforcement 
                        mechanisms; and
                    (B) to secure fair, equitable, and 
                nondiscriminatory market access opportunities for 
                United States persons that rely upon intellectual 
                property protection.
            (5) Transparency.--The principal negotiating objective of 
        the United States with respect to transparency is to obtain 
        wider and broader application of the principle of transparency 
        through--
                    (A) increased and more timely public access to 
                information regarding trade issues and the activities 
                of international trade institutions;
                    (B) increased openness at the WTO and other 
                international trade fora by increasing public access to 
                appropriate meetings, proceedings, and submissions, 
                including with regard to dispute settlement and 
                investment; and
                    (C) increased and more timely public access to all 
                notifications and supporting documentation submitted by 
                parties to the WTO.
            (6) Anti-corruption.--The principal negotiating objectives 
        of the United States with respect to the use of money or other 
        things of value to influence acts, decisions, or omissions of 
        foreign governments or officials or to secure any improper 
        advantage in a manner affecting trade are--
                    (A) to obtain high standards and appropriate 
                domestic enforcement mechanisms applicable to persons 
                from all countries participating in the applicable 
                trade agreement that prohibit such attempts to 
                influence acts, decisions, or omissions of foreign 
                governments; and
                    (B) to ensure that such standards do not place 
                United States persons at a competitive disadvantage in 
                international trade.
            (7) Improvement of the wto and multilateral trade 
        agreements.--The principal negotiating objectives of the United 
        States regarding the improvement of the World Trade 
        Organization, the Uruguay Round Agreements, and other 
        multilateral and bilateral trade agreements are--
                    (A) to achieve full implementation and extend the 
                coverage of the World Trade Organization and such 
                agreements to products, sectors, and conditions of 
                trade not adequately covered; and
                    (B) to expand country participation in and 
                enhancement of the Information Technology Agreement and 
                other trade agreements.
            (8) Regulatory practices.--The principal negotiating 
        objectives of the United States regarding the use of government 
        regulation or other practices by foreign governments to provide 
        a competitive advantage to their domestic producers, service 
        providers, or investors and thereby reduce market access for 
        United States goods, services, and investments are--
                    (A) to achieve increased transparency and 
                opportunity for the participation of affected parties 
                in the development of regulations;
                    (B) to require that proposed regulations be based 
                on sound science, cost-benefit analysis, risk 
                assessment, or other objective evidence;
                    (C) to establish consultative mechanisms among 
                parties to trade agreements to promote increased 
                transparency in developing guidelines,  rules, 
regulations, and laws for government procurement and other regulatory 
regimes; and
                    (D) to achieve the elimination of government 
                measures such as price controls and reference pricing 
                which deny full market access for United States 
                products.
            (9) Electronic commerce.--The principal negotiating 
        objectives of the United States with respect to electronic 
        commerce are--
                    (A) to ensure that current obligations, rules, 
                disciplines, and commitments under the World Trade 
                Organization apply to electronic commerce;
                    (B) to ensure that--
                            (i) electronically delivered goods and 
                        services receive no less favorable treatment 
                        under trade rules and commitments than like 
                        products delivered in physical form; and
                            (ii) the classification of such goods and 
                        services ensures the most liberal trade 
                        treatment possible;
                    (C) to ensure that governments refrain from 
                implementing trade-related measures that impede 
                electronic commerce;
                    (D) where legitimate policy objectives require 
                domestic regulations that affect electronic commerce, 
                to obtain commitments that any such regulations are the 
                least restrictive on trade, nondiscriminatory, and 
                transparent, and promote an open market environment; 
                and
                    (E) to extend the moratorium of the World Trade 
                Organization on duties on electronic transmissions.
            (10) Reciprocal trade in agriculture.--(A) The principal 
        negotiating objective of the United States with respect to 
        agriculture is to obtain competitive opportunities for United 
        States exports of agricultural commodities in foreign markets 
        substantially equivalent to the competitive opportunities 
        afforded foreign exports in United States markets and to 
        achieve fairer and more open conditions of trade in bulk, 
        specialty crop, and value-added commodities by--
                    (i) reducing or eliminating, by a date certain, 
                tariffs or other charges that decrease market 
                opportunities for United States exports--
                            (I) giving priority to those products that 
                        are subject to significantly higher tariffs or 
                        subsidy regimes of major producing countries; 
                        and
                            (II) providing reasonable adjustment 
                        periods for United States import-sensitive 
                        products, in close consultation with the 
                        Congress on such products before initiating 
                        tariff reduction negotiations;
                    (ii) reducing tariffs to levels that are the same 
                as or lower than those in the United States;
                    (iii) reducing or eliminating subsidies that 
                decrease market opportunities for United States exports 
                or unfairly distort agriculture markets to the 
                detriment of the United States;
                    (iv) allowing the preservation of programs that 
                support family farms and rural communities but do not 
                distort trade;
                    (v) developing disciplines for domestic support 
                programs, so that production that is in excess of 
                domestic food security needs is sold at world prices;
                    (vi) eliminating Government policies that create 
                price-depressing surpluses;
                    (vii) eliminating state trading enterprises 
                whenever possible;
                    (viii) developing, strengthening, and clarifying 
                rules and effective dispute settlement mechanisms to 
                eliminate practices that unfairly decrease United 
                States market access opportunities or distort 
                agricultural markets to the detriment of the United 
                States, particularly with respect to import-sensitive 
                products, including--
                            (I) unfair or trade-distorting activities 
                        of state trading enterprises and other 
                        administrative mechanisms, with emphasis on 
                        requiring price transparency in the operation 
                        of state trading enterprises and such other 
                        mechanisms in order to end cross subsidization, 
                        price discrimination, and price undercutting;
                            (II) unjustified trade restrictions or 
                        commercial requirements, such as labeling, that 
                        affect new technologies, including 
                        biotechnology;
                            (III) unjustified sanitary or phytosanitary 
                        restrictions, including those not based on 
                        scientific principles in contravention of the 
                        Uruguay Round Agreements;
                            (IV) other unjustified technical barriers 
                        to trade; and
                            (V) restrictive rules in the administration 
                        of tariff rate quotas;
                    (ix) eliminating practices that adversely affect 
                trade in perishable or cyclical products, while 
                improving import relief mechanisms to recognize the 
                unique characteristics of perishable and cyclical 
                agriculture;
                    (x) ensuring that the use of import relief 
                mechanisms for perishable and cyclical agriculture are 
                as accessible and timely to growers in the United 
                States as those mechanisms that are used by other 
                countries;
                    (xi) taking into account whether a party to the 
                negotiations has failed to adhere to the provisions of 
                already existing trade agreements with the United 
                States or has circumvented obligations under those 
                agreements;
                    (xii) taking into account whether a product is 
                subject to market distortions by reason of a failure of 
                a major producing country to adhere to the provisions 
                of already existing trade agreements with the United 
                States or by the circumvention by that country of its 
                obligations under those agreements;
                    (xiii) otherwise ensuring that countries that 
                accede to the World Trade Organization have made 
                meaningful market liberalization commitments in 
                agriculture;
                    (xiv) taking into account the impact that 
                agreements covering agriculture to which the United 
                States is a party, including the North American Free 
                Trade Agreement, have on the United States agricultural 
                industry; and
                    (xv) maintaining bona fide food assistance programs 
                and preserving United States market development and 
                export credit programs.
            (B)(i) Before commencing negotiations with respect to 
        agriculture, the United States Trade Representative, in 
        consultation with the Congress, shall seek to develop a 
        position on the treatment of seasonal and perishable 
        agricultural products to be employed in the negotiations in 
        order to develop an international consensus on the treatment of 
        seasonal or perishable agricultural products in investigations 
        relating to dumping and safeguards and in any other relevant 
        area.
            (ii) During any negotiations on agricultural subsidies, the 
        United States Trade Representative shall seek to establish the 
        common base year for calculating the Aggregated Measurement of 
        Support (as defined in the Agreement on Agriculture) as the end 
        of each country's Uruguay Round implementation period, as 
        reported in each country's Uruguay Round market access 
        schedule.
            (iii) The negotiating objective provided in subparagraph 
        (A) applies with respect to agricultural matters to be 
        addressed in any trade agreement entered into under section 
        3(a) or (b), including any trade agreement entered into under 
        section 3(a) or (b) that provides for accession to a trade 
        agreement to which the United States is already a party, such 
        as the North American Free Trade Agreement and the United 
        States-Canada Free Trade Agreement.
            (11) Labor and the environment.--The principal negotiating 
        objectives of the United States with respect to labor and the 
        environment are--
                    (A) to ensure that a party to a trade agreement 
                with the United States does not fail to effectively 
                enforce its environmental or labor laws, through a 
                sustained or recurring course of action or inaction, in 
                a manner affecting trade between the United States and 
                that party after entry into force of a trade agreement 
                between those countries;
                    (B) to recognize that parties to a trade agreement 
                retain the right to exercise discretion with respect to 
                investigatory, prosecutorial, regulatory, and 
                compliance matters and to make decisions regarding the 
                allocation of resources to enforcement with respect to 
                other labor or environmental matters determined to have 
                higher priorities, and to recognize that a country is 
                effectively enforcing its laws if a course of action or 
                inaction reflects a reasonable exercise of such 
                discretion, or results from a bona fide decision 
                regarding the allocation of resources and no 
                retaliation may be authorized based on the exercise of 
                these rights or the right to establish domestic labor 
                standards and levels of environmental protection;
                    (C) to strengthen the capacity of United States 
                trading partners to promote respect for core labor 
                standards (as defined in section 11(2));
                    (D) to strengthen the capacity of United States 
                trading partners to protect the environment through the 
                promotion of sustainable development;
                    (E) to reduce or eliminate government practices or 
                policies that unduly threaten sustainable development;
                    (F) to seek market access, through the elimination 
                of tariffs and nontariff barriers, for United States 
                environmental technologies, goods, and services; and
                    (G) to ensure that labor, environmental, health, or 
                safety policies and practices of the parties to trade 
                agreements with the United States do not arbitrarily or 
                unjustifiably discriminate against United States 
                exports or serve as disguised barriers to trade.
            (12) Dispute settlement and enforcement.--The principal 
        negotiating objectives of the United States with respect to 
        dispute settlement and enforcement of trade agreements are--
                    (A) to seek provisions in trade agreements 
                providing for resolution of disputes between 
                governments under those trade agreements in an 
                effective, timely, transparent, equitable, and reasoned 
                manner, requiring determinations based on facts and the 
                principles of the agreements, with the goal of 
                increasing compliance with the agreements;
                    (B) to seek to strengthen the capacity of the Trade 
                Policy Review Mechanism of the World Trade Organization 
                to review compliance with commitments;
                    (C) to seek provisions encouraging the early 
                identification and settlement of disputes through 
                consultation;
                    (D) to seek provisions to encourage the provision 
                of trade-expanding compensation if a party to a dispute 
                under the agreement does not come into compliance with 
                its obligations under the agreement;
                    (E) to seek provisions to impose a penalty upon a 
                party to a dispute under the agreement that--
                            (i) encourages compliance with the 
                        obligations of the agreement;
                            (ii) is appropriate to the parties, nature, 
                        subject matter, and scope of the violation; and
                            (iii) has the aim of not adversely 
                        affecting parties or interests not party to the 
                        dispute while maintaining the effectiveness of 
                        the enforcement mechanism; and
                    (F) to seek provisions that treat United States 
                principal negotiating objectives equally with respect 
                to--
                            (i) the ability to resort to dispute 
                        settlement under the applicable agreement;
                            (ii) the availability of equivalent dispute 
                        settlement procedures; and
                            (iii) the availability of equivalent 
                        remedies.
            (13) WTO extended negotiations.--The principal negotiating 
        objectives of the United States regarding trade in civil 
        aircraft are those set forth in section 135(c) of the Uruguay 
        Round Agreements Act (19 U.S.C. 3355(c)) and regarding rules of 
        origin are the conclusion of an agreement described in section 
        132 of that Act (19 U.S.C. 3552).
    (c) Promotion of Certain Priorities.--In order to address and 
maintain United States competitiveness in the global economy, the 
President shall--
            (1) seek greater cooperation between the WTO and the ILO;
            (2) seek to establish consultative mechanisms among parties 
        to trade agreements to strengthen the capacity of United States 
        trading partners to promote respect for core labor standards 
        (as defined in section 11(2)), and report to the Committee on 
        Ways and Means of the House of Representatives and the 
        Committee on Finance of the Senate on the content and operation 
        of such mechanisms;
            (3) seek to establish consultative mechanisms among parties 
        to trade agreements to strengthen the capacity of United States 
        trading partners to develop and implement standards for the 
        protection of the environment and human health based on sound 
        science, and report to the Committee on Ways and Means of the 
        House of Representatives and the Committee on Finance of the 
        Senate on the content and operation of such mechanisms;
            (4) conduct environmental reviews of future trade and 
        investment agreements, consistent with Executive Order 13141 of 
        November 16, 1999 and its relevant guidelines, and report to 
        the Committee on Ways and Means of the House of Representatives 
        and the Committee on Finance of the Senate on such reviews;
            (5) review the impact of future trade agreements on United 
        States employment, modeled after Executive Order 13141, and 
        report to the Committee on Ways and Means of the House of 
        Representatives and the Committee on Finance of the Senate on 
        such review;
            (6) take into account other legitimate United States 
        domestic objectives including, but not limited to, the 
        protection of legitimate health or safety, essential security, 
        and consumer interests and the law and regulations related 
        thereto;
            (7) have the Secretary of Labor consult with any country 
        seeking a trade agreement with the United States concerning 
        that country's labor laws and provide technical assistance to 
        that country if needed;
            (8) with respect to any trade agreement which the President 
        seeks to implement under trade authorities procedures, submit 
        to the Congress a report describing the extent to which the 
        country or countries that are parties to the agreement have in 
        effect laws governing exploitative child labor;
            (9) preserve the ability of the United States to enforce 
        rigorously its trade laws, including the antidumping and 
        countervailing duty laws, and avoid agreements which lessen the 
        effectiveness of domestic and international disciplines on 
        unfair trade, especially dumping and subsidies, in order to 
        ensure that United States workers, agricultural producers, and 
        firms can compete fully on fair terms and enjoy the benefits of 
        reciprocal trade concessions;
            (10) continue to promote consideration of multilateral 
        environmental agreements and consult with parties to such 
        agreements regarding the consistency of any such agreement that 
        includes trade measures with existing environmental exceptions 
        under Article XX of the GATT 1994;
            (11) report to the Committee on Ways and Means of the House 
        of Representatives and the Committee on Finance of the Senate, 
        not later than 12 months after the imposition of a penalty or 
        remedy by the United States permitted by a trade agreement to 
        which this Act applies, on the effectiveness of the penalty or 
        remedy applied under United States law in enforcing United 
        States rights under the trade agreement; and
            (12) seek to establish consultative mechanisms among 
        parties to trade agreements to examine the trade consequences 
        of significant and unanticipated currency movements and to 
        scrutinize whether a foreign government engaged in a pattern of 
        manipulating its currency to promote a competitive advantage in 
        international trade.
The report under paragraph (11) shall address whether the penalty or 
remedy was effective in changing the behavior of the targeted party and 
whether the penalty or remedy had any adverse impact on parties or 
interests not party to the dispute.
    (d) Consultations.--
            (1) Consultations with congressional advisers.--In the 
        course of negotiations conducted  under this Act, the United 
States Trade Representative shall consult closely and on a timely basis 
with, and keep fully apprised of the negotiations, the Congressional 
Oversight Group convened under section 7 and all committees of the 
House of Representatives and the Senate with jurisdiction over laws 
that would be affected by a trade agreement resulting from the 
negotiations.
            (2) Consultation before agreement initialed.--In the course 
        of negotiations conducted under this Act, the United States 
        Trade Representative shall--
                    (A) consult closely and on a timely basis 
                (including immediately before initialing an agreement) 
                with, and keep fully apprised of the negotiations, the 
                congressional advisers for trade policy and 
                negotiations appointed under section 161 of the Trade 
                Act of 1974 (19 U.S.C. 2211), the Committee on Ways and 
                Means of the House of Representatives, the Committee on 
                Finance of the Senate, and the Congressional Oversight 
                Group convened under section 7; and
                    (B) with regard to any negotiations and agreement 
                relating to agricultural trade, also consult closely 
                and on a timely basis (including immediately before 
                initialing an agreement) with, and keep fully apprised 
                of the negotiations, the Committee on Agriculture of 
                the House of Representatives and the Committee on 
                Agriculture, Nutrition, and Forestry of the Senate.
    (e) Adherence to Obligations Under Uruguay Round Agreements.--In 
determining whether to enter into negotiations with a particular 
country, the President shall take into account the extent to which that 
country has implemented, or has accelerated the implementation of, its 
obligations under the Uruguay Round Agreements.

SEC. 3. TRADE AGREEMENTS AUTHORITY.

    (a) Agreements Regarding Tariff Barriers.--
            (1) In general.--Whenever the President determines that one 
        or more existing duties or other import restrictions of any 
        foreign country or the United States are unduly burdening and 
        restricting the foreign trade of the United States and that the 
        purposes, policies, priorities, and objectives of this Act will 
        be promoted thereby, the President--
                    (A) may enter into trade agreements with foreign 
                countries before--
                            (i) June 1, 2005; or
                            (ii) June 1, 2007, if trade authorities 
                        procedures are extended under subsection (c); 
                        and
                    (B) may, subject to paragraphs (2) and (3), 
                proclaim--
                            (i) such modification or continuance of any 
                        existing duty,
                            (ii) such continuance of existing duty-free 
                        or excise treatment, or
                            (iii) such additional duties,
                as the President determines to be required or 
                appropriate to carry out any such trade agreement.
        The President shall notify the Congress of the President's 
        intention to enter into an agreement under this subsection.
            (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 the enactment of this Act) to a rate of duty 
                which is less than 50 percent of the rate of such duty 
                that applies on such date of enactment;
                    (B) notwithstanding paragraph (6), reduces the rate 
                of duty below that applicable under the Uruguay Round 
                Agreements, on any agricultural product which was the 
                subject of tariff reductions by the United States as a 
                result of the Uruguay Round Agreements, for which the 
                rate of duty, pursuant to such Agreements, was reduced 
                on January 1, 1995, to a rate which was not less than 
                97.5 percent of the rate of duty that applied to such 
                article on December 31, 1994; or
                    (C) increases any rate of duty above the rate that 
                applied on the date of the 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 is required 
                under subparagraph (A) with respect to a duty 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 an amount 
        equal to 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 that may 
        not be proclaimed by reason of paragraph (2) may take effect 
        only if a provision authorizing such reduction is included 
        within an implementing bill provided for under section 5 and 
        that bill is enacted into law.
            (6) Other tariff modifications.--Notwithstanding paragraphs 
        (1)(B), (2)(A), (2)(C), and (3) through (5), and subject to the 
        consultation and layover requirements of section 115 of the 
Uruguay Round Agreements Act, the President may proclaim the 
modification of any duty or staged rate reduction of any duty set forth 
in Schedule XX, as defined in section 2(5) of that Act, if the United 
States agrees to such modification or staged rate reduction in a 
negotiation for the reciprocal elimination or harmonization of duties 
under the auspices of the World Trade Organization.
            (7) Authority under uruguay round agreements act not 
        affected.--Nothing in this subsection shall limit the authority 
        provided to the President under section 111(b) of the Uruguay 
        Round Agreements Act (19 U.S.C. 3521(b)).
    (b) Agreements Regarding Tariff and Nontariff Barriers.--
            (1) In general.--(A) Whenever the President determines 
        that--
                    (i) one or more existing duties or any other import 
                restriction of any foreign country or the United States 
                or any other barrier to, or other distortion of, 
                international trade unduly burdens or restricts the 
                foreign trade of the United States or adversely affects 
                the United States economy; or
                    (ii) the imposition of any such barrier or 
                distortion is likely to result in such a burden, 
                restriction, or effect;
        and that the purposes, policies, priorities, and objectives of 
        this Act will be promoted thereby, the President may enter into 
        a trade agreement described in subparagraph (B) during the 
        period described in subparagraph (C).
            (B) The President may enter into a trade agreement under 
        subparagraph (A) with foreign countries providing for--
                    (i) the reduction or elimination of a duty, 
                restriction, barrier, or other distortion described in 
                subparagraph (A), or
                    (ii) the prohibition of, or limitation on the 
                imposition of, such barrier or other distortion.
            (C) The President may enter into a trade agreement under 
        this paragraph before--
                    (i) June 1, 2005; or
                    (ii) June 1, 2007, if trade authorities procedures 
                are extended under subsection (c).
            (2) Conditions.--A trade agreement may be entered into 
        under this subsection only if such agreement makes progress in 
        meeting the applicable objectives described in section 2(a) and 
        (b) and the President satisfies the conditions set forth in 
        section 4.
            (3) Bills qualifying for trade authorities procedures.--(A) 
        The provisions of section 151 of the Trade Act of 1974 (in this 
        Act referred to as ``trade authorities procedures'') apply to a 
        bill of either House of Congress which contains provisions 
        described in subparagraph (B) to the same extent as such 
        section 151 applies to implementing bills under that section. A 
        bill to which this paragraph applies shall hereafter in this 
        Act be referred to as an ``implementing bill''.
            (B) The provisions referred to in subparagraph (A) are--
                    (i) a provision approving a trade agreement entered 
                into under this subsection and approving the statement 
                of administrative action, if any, proposed to implement 
                such trade agreement; and
                    (ii) if changes in existing laws or new statutory 
                authority are required to implement such trade 
                agreement or agreements, provisions, necessary or 
                appropriate to implement such trade agreement or 
                agreements, either repealing or amending existing laws 
                or providing new statutory authority.
    (c) Extension Disapproval Process for Congressional Trade 
Authorities Procedures.--
            (1) In general.--Except as provided in section 5(b)--
                    (A) the trade authorities procedures apply to 
                implementing bills submitted with respect to trade 
                agreements entered into under subsection (b) before 
                July 1, 2005; and
                    (B) the trade authorities procedures shall be 
                extended to implementing bills submitted with respect 
                to trade agreements entered into under subsection (b) 
                after June 30, 2005, and before July 1, 2007, if (and 
                only if)--
                            (i) the President requests such extension 
                        under paragraph (2); and
                            (ii) neither House of the Congress adopts 
                        an extension disapproval resolution under 
                        paragraph (5) before June 1, 2005.
            (2) Report to congress by the president.--If the President 
        is of the opinion that the trade authorities procedures should 
        be extended to implementing bills described in paragraph 
        (1)(B), the President shall submit to the Congress, not later 
        than March 1, 2005, a written report that contains a request 
        for such extension, together with--
                    (A) a description of all trade agreements that have 
                been negotiated under subsection (b) and the 
                anticipated schedule for submitting such agreements to 
                the Congress for approval;
                    (B) a description of the progress that has been 
                made in negotiations to achieve the purposes, policies, 
                priorities, and objectives of this Act, and a statement 
                that such progress justifies the continuation of 
                negotiations; and
                    (C) a statement of the reasons why the extension is 
                needed to complete the negotiations.
            (3) Report to congress by the advisory committee.--The 
        President shall promptly inform the Advisory Committee for 
        Trade Policy and Negotiations established under section 135 of 
        the Trade Act of 1974 (19 U.S.C. 2155) of the President's 
        decision to submit a report to the Congress under paragraph 
        (2). The Advisory Committee shall submit to the Congress as 
        soon as practicable, but not later than May 1, 2005, a written 
        report that contains--
                    (A) its views regarding the progress that has been 
                made in negotiations to achieve the  purposes, 
policies, priorities, and objectives of this Act; and
                    (B) a statement of its views, and the reasons 
                therefor, regarding whether the extension requested 
                under paragraph (2) should be approved or disapproved.
            (4) Status of reports.--The reports submitted to the 
        Congress under paragraphs (2) and (3), or any portion of such 
        reports, may be classified to the extent the President 
        determines appropriate.
            (5) Extension disapproval resolutions.--(A) For purposes of 
        paragraph (1), the term ``extension disapproval resolution'' 
        means a resolution of either House of the Congress, the sole 
        matter after the resolving clause of which is as follows: 
        ``That the ____ disapproves the request of the President for 
        the extension, under section 3(c)(1)(B)(i) of the Bipartisan 
        Trade Promotion Authority Act of 2001, of the trade authorities 
        procedures under that Act to any implementing bill submitted 
        with respect to any trade agreement entered into under section 
        3(b) of that Act after June 30, 2005.'', with the blank space 
        being filled with the name of the resolving House of the 
        Congress.
            (B) Extension disapproval resolutions--
                    (i) may be introduced in either House of the 
                Congress by any member of such House; and
                    (ii) shall be referred, in the House of 
                Representatives, to the Committee on Ways and Means 
                and, in addition, to the Committee on Rules.
            (C) The provisions of section 152(d) and (e) of the Trade 
        Act of 1974 (19 U.S.C. 2192(d) and (e)) (relating to the floor 
        consideration of certain resolutions in the House and Senate) 
        apply to extension disapproval resolutions.
            (D) It is not in order for--
                    (i) the Senate to consider any extension 
                disapproval resolution not reported by the Committee on 
                Finance;
                    (ii) the House of Representatives to consider any 
                extension disapproval resolution not reported by the 
                Committee on Ways and Means and, in addition, by the 
                Committee on Rules; or
                    (iii) either House of the Congress to consider an 
                extension disapproval resolution after June 30, 2005.
    (d) Commencement of Negotiations.--In order to contribute to the 
continued economic expansion of the United States, the President shall 
commence negotiations covering tariff and nontariff barriers affecting 
any industry, product, or service sector, and expand existing sectoral 
agreements to countries that are not parties to those agreements, in 
cases where the President determines that such negotiations are 
feasible and timely and would benefit the United States. Such sectors 
include agriculture, commercial services, intellectual property rights, 
industrial and capital goods, government procurement, information 
technology products, environmental technology and services, medical 
equipment and services, civil aircraft, and infrastructure products. In 
so doing, the President shall take into account all of the principal 
negotiating objectives set forth in section 2(b).

SEC. 4. CONSULTATIONS AND ASSESSMENT.

    (a) Notice and Consultation Before Negotiation.--The President, 
with respect to any agreement that is subject to the provisions of 
section 3(b), shall--
            (1) provide, at least 90 calendar days before initiating 
        negotiations, written notice to the Congress of the President's 
        intention to enter into the negotiations and set forth therein 
        the date the President intends to initiate such negotiations, 
        the specific United States objectives for the negotiations, and 
        whether the President intends to seek an agreement, or changes 
        to an existing agreement;
            (2) before and after submission of the notice, consult 
        regarding the negotiations with the Committee on Finance of the 
        Senate and the Committee on Ways and Means of the House of 
        Representatives, such other committees of the House and Senate 
        as the President deems appropriate, and the Congressional 
        Oversight group convened under section 7; and
            (3) upon the request of a majority of the members of the 
        Congressional Oversight Group under section 7(c), meet with the 
        Congressional Oversight Group before initiating the 
        negotiations or at any other time concerning the negotiations.
    (b) Negotiations Regarding Agriculture.--
            (1) In general.--Before initiating or continuing 
        negotiations the subject matter of which is directly related to 
        the subject matter under section 2(b)(10)(A)(i) with any 
        country, the President shall assess whether United States 
        tariffs on agricultural products that were bound under the 
        Uruguay Round Agreements are lower than the tariffs bound by 
        that country. In addition, the President shall consider whether 
        the tariff levels bound and applied throughout the world with 
        respect to imports from the United States are higher than 
        United States tariffs and whether the negotiation provides an 
        opportunity to address any such disparity. The President shall 
        consult with 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 concerning the results of 
        the assessment, whether it is appropriate for the United States 
        to agree to further tariff reductions based on the conclusions 
        reached in the assessment, and how all applicable negotiating 
        objectives will be met.
            (2) Special consultations on import sensitive products.--
        (A) Before initiating negotiations with regard to agriculture, 
        and, with respect to the Free Trade Area for the Americas and 
        negotiations with regard to agriculture under the auspices of 
        the World Trade Organization, as soon as practicable after the 
        enactment of this Act, the United States Trade Representative 
        shall--
                    (i) identify those agricultural products subject to 
                tariff reductions by the United States as a result of 
                the Uruguay Round Agreements, for which the rate of 
                duty was reduced on January 1, 1995, to a rate which 
                was not less than 97.5 percent of the rate of duty that 
                applied to such article on December 31, 1994;
                    (ii) consult with 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 concerning--
                            (I) whether any further tariff reductions 
                        on the products identified under clause (i) 
                        should be appropriate, taking into account the 
                        impact of any such tariff reduction on the 
                        United States industry producing the product 
                        concerned; and
                            (II) whether the products so identified 
                        face unjustified sanitary or phytosanitary 
                        restrictions, including those not based on 
                        scientific principles in contravention of the 
                        Uruguay Round Agreements;
                    (iii) request that the International Trade 
                Commission prepare an assessment of the probable 
                economic effects of any such tariff reduction on the 
                United States industry producing the product concerned 
                and on the United States economy as a whole; and
                    (iv) upon complying with clauses (i), (ii), and 
                (iii), notify 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 of those products identified under clause 
                (i) for which the Trade Representative intends to seek 
                tariff liberalization in the negotiations and the 
                reasons for seeking such tariff liberalization.
            (B) If, after negotiations described in subparagraph (A) 
        are commenced--
                    (i) the United States Trade Representative 
                identifies any additional agricultural product 
                described in subparagraph (A)(i) for tariff reductions 
                which were not the subject of a notification under 
                subparagraph (A)(iv), or
                    (ii) any additional agricultural product described 
                in subparagraph (A)(i) is the subject of a request for 
                tariff reductions by a party to the negotiations,
        the Trade Representative shall, as soon as practicable, notify 
        the committees referred to in subparagraph (A)(iv) of those 
        products and the reasons for seeking such tariff reductions.
    (c) Negotiations Regarding Textiles.--Before initiating or 
continuing negotiations the subject matter of which is directly related 
to textiles and apparel products with any country, the President shall 
assess whether United States tariffs on textile and apparel products 
that were bound under the Uruguay Round Agreements are lower than the 
tariffs bound by that country and whether the negotiation provides an 
opportunity to address any such disparity. The President shall consult 
with the Committee on Ways and Means of the House of Representatives 
and the Committee on Finance of the Senate concerning the results of 
the assessment, whether it is appropriate for the United States to 
agree to further tariff reductions based on the conclusions reached in 
the assessment, and how all applicable negotiating objectives will be 
met.
    (d) Consultation With Congress Before Agreements Entered Into.--
            (1) Consultation.--Before entering into any trade agreement 
        under section 3(b), the President shall consult with--
                    (A) the Committee on Ways and Means of the House of 
                Representatives and the Committee on Finance of the 
                Senate;
                    (B) each other committee of the House and the 
                Senate, and each joint committee of the Congress, which 
                has jurisdiction over legislation involving subject 
                matters which would be affected by the trade agreement; 
                and
                    (C) the Congressional Oversight Group convened 
                under section 7.
            (2) Scope.--The consultation described in paragraph (1) 
        shall include consultation with respect to--
                    (A) the nature of the agreement;
                    (B) how and to what extent the agreement will 
                achieve the applicable purposes, policies, priorities, 
                and objectives of this Act; and
                    (C) the implementation of the agreement under 
                section 5, including the general effect of the 
                agreement on existing laws.
    (e) Advisory Committee Reports.--The report required under section 
135(e)(1) of the Trade Act of 1974 regarding any trade agreement 
entered into under section 3(a) or (b) of this Act shall be provided to 
the President, the Congress, and the United States Trade Representative 
not later than 30 days after the date on which the President notifies 
the Congress under section 3(a)(1) or 5(a)(1)(A) of the President's 
intention to enter into the agreement.
    (f) ITC Assessment.--
            (1) In general.--The President, at least 90 calendar days 
        before the day on which the President enters into a trade 
        agreement under section 3(b), shall provide the International 
        Trade Commission (referred to in this subsection as ``the 
        Commission'') with the details of the agreement as it exists at 
        that time and request the Commission to prepare and submit an 
        assessment of the agreement as described in paragraph (2). 
        Between the time the President makes the request under this 
        paragraph and the time the Commission submits the assessment, 
        the President shall keep the Commission current with respect to 
        the details of the agreement.
            (2) ITC assessment.--Not later than 90 calendar days after 
        the President enters into the agreement, the Commission shall 
        submit to the President and the Congress a report assessing the 
        likely impact of the agreement on the United States economy as 
        a whole and on specific industry sectors, including the impact 
        the agreement will have on the gross domestic product, exports 
        and imports, aggregate employment and employment opportunities, 
        the production, employment, and competitive position of 
        industries likely to be significantly affected by the 
        agreement, and the interests of United States consumers.
            (3) Review of empirical literature.--In preparing the 
        assessment, the Commission shall review available economic 
        assessments regarding the agreement, including literature 
        regarding any substantially equivalent proposed agreement, and 
        shall provide in its assessment a description of the analyses 
        used and conclusions drawn in such literature, and a discussion 
        of areas of consensus and divergence between the various 
        analyses and conclusions, including those of the Commission 
        regarding the agreement.

SEC. 5. IMPLEMENTATION OF TRADE AGREEMENTS.

    (a) In General.--
            (1) Notification and submission.--Any agreement entered 
        into under section 3(b) shall enter into force with respect to 
        the United States if (and only if)--
                    (A) the President, at least 90 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;
                    (B) within 60 days after entering into the 
                agreement, the President submits to the 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;
                    (C) after entering into the agreement, the 
                President submits to the Congress, on a day on which 
                both Houses of Congress are in session, a copy of the 
                final legal text of the agreement, together with--
                            (i) a draft of an implementing bill 
                        described in section 3(b)(3);
                            (ii) a statement of any administrative 
                        action proposed to implement the trade 
                        agreement; and
                            (iii) the supporting information described 
                        in paragraph (2); and
                    (D) the implementing bill is enacted into law.
            (2) Supporting information.--The supporting information 
        required under paragraph (1)(C)(iii) consists of--
                    (A) an explanation as to how the implementing bill 
                and proposed administrative action will change or 
                affect existing law; and
                    (B) a statement--
                            (i) asserting that the agreement makes 
                        progress in achieving the applicable purposes, 
                        policies, priorities, and objectives of this 
                        Act; and
                            (ii) setting forth the reasons of the 
                        President regarding--
                                    (I) how and to what extent the 
                                agreement makes progress in achieving 
                                the applicable purposes, policies, and 
                                objectives referred to in clause (i);
                                    (II) whether and how the agreement 
                                changes provisions of an agreement 
                                previously negotiated;
                                    (III) how the agreement serves the 
                                interests of United States commerce;
                                    (IV) how the implementing bill 
                                meets the standards set forth in 
                                section 3(b)(3); and
                                    (V) how and to what extent the 
                                agreement makes progress in achieving 
                                the applicable purposes, policies, and 
                                objectives referred to in section 2(c) 
                                regarding the promotion of certain 
                                priorities.
            (3) Reciprocal benefits.--In order to ensure that a foreign 
        country that is not a party to a trade agreement entered into 
        under section 3(b) does not receive benefits under the 
        agreement unless the country is also subject to the obligations 
        under the agreement, the implementing bill submitted with 
        respect to the agreement shall provide that the benefits and 
        obligations under the agreement apply only to the parties to 
        the agreement, if such application is consistent with the terms 
        of the agreement. The implementing bill may also provide that 
        the benefits and obligations under the agreement do not apply 
        uniformly to all parties to the agreement, if such application 
        is consistent with the terms of the agreement.
    (b) Limitations on Trade Authorities Procedures.--
            (1) For lack of notice or consultations.--
                    (A) In general.--The trade authorities procedures 
                shall not apply to any implementing bill submitted with 
                respect to a trade agreement or trade agreements 
                entered into under section 3(b) if during the 60-day 
                period beginning on the date that one House of Congress 
                agrees to a procedural disapproval resolution for lack 
                of notice or consultations with respect to such trade 
                agreement or agreements, the other House separately 
                agrees to a procedural disapproval resolution with 
                respect to such trade agreement or agreements.
                    (B) Procedural disapproval resolution.--(i) For 
                purposes of this paragraph, the term ``procedural 
                disapproval resolution'' means a resolution of either 
                House of Congress, the sole matter after the resolving 
                clause of which is as follows: ``That the President has 
                failed or refused to notify or consult in accordance 
                with the Bipartisan Trade Promotion Authority Act of 
                2001 on negotiations with respect to ____________ and, 
                therefore, the trade authorities procedures under that 
                Act shall not apply to any implementing bill submitted 
                with respect to such trade agreement or agreements.'', 
                with the blank space being filled with a description of 
                the trade agreement or agreements with respect to which 
                the President is considered to have failed or refused 
                to notify or consult.
                    (ii) For purposes of clause (i), the President has 
                ``failed or refused to notify or consult in accordance 
                with the Bipartisan Trade Promotion Authority Act of 
                2001'' on negotiations with respect to a trade 
                agreement or trade agreements if--
                            (I) the President has failed or refused to 
                        consult (as the case may be) in accordance with 
                        section 4 or 5 with respect to the 
                        negotiations, agreement, or agreements;
                            (II) guidelines under section 7(b) have not 
                        been developed or met with respect to the 
                        negotiations, agreement, or agreements;
                            (III) the President has not met with the 
                        Congressional Oversight Group pursuant to a 
                        request made under section 7(c) with respect to 
                        the negotiations, agreement, or agreements; or
                            (IV) the agreement or agreements fail to 
                        make progress in achieving the purposes, 
                        policies, priorities, and objectives of this 
                        Act.
            (2) Procedures for considering resolutions.--(A) Procedural 
        disapproval resolutions--
                    (i) in the House of Representatives--
                            (I) may be introduced by any Member of the 
                        House;
                            (II) shall be referred to the Committee on 
                        Ways and Means and, in addition, to the 
                        Committee on Rules; and
                            (III) may not be amended by either 
                        Committee; and
                    (ii) in the Senate may be introduced by any Member 
                of the Senate.
            (B) The provisions of section 152(d) and (e) of the Trade 
        Act of 1974 (19 U.S.C. 2192(d) and (e)) (relating to the floor 
        consideration of certain resolutions in the House and Senate) 
        apply to a procedural disapproval resolution introduced with 
        respect to a trade agreement if no other procedural disapproval 
        resolution with respect to that trade agreement has previously 
        been considered under such provisions of section 152 of the 
        Trade Act of 1974 in that House of Congress during that 
        Congress.
            (C) It is not in order for the House of Representatives to 
        consider any procedural disapproval resolution not reported by 
        the Committee on Ways and Means and, in addition, by the 
        Committee on Rules.
    (c) Rules of House of Representatives and Senate.--Subsection (b) 
of this section and section 3(c) are enacted by the Congress--
            (1) as an exercise of the rulemaking power of the House of 
        Representatives and the Senate, respectively, and as such are 
        deemed a part of the rules of each House, respectively, and 
        such procedures supersede other rules only to the extent that 
        they are inconsistent with such other rules; and
            (2) with the full recognition of the constitutional right 
        of either House to change the rules (so far as relating to the 
        procedures of that House) at any time, in the same manner, and 
        to the same extent as any other rule of that House.

SEC. 6. TREATMENT OF CERTAIN TRADE AGREEMENTS FOR WHICH NEGOTIATIONS 
              HAVE ALREADY BEGUN.

    (a) Certain Agreements.--Notwithstanding section 3(b)(2), if an 
agreement to which section 3(b) applies--
            (1) is entered into under the auspices of the World Trade 
        Organization,
            (2) is entered into with Chile,
            (3) is entered into with Singapore, or
            (4) establishes a Free Trade Area for the Americas,
and results from negotiations that were commenced before the date of 
the enactment of this Act, subsection (b) shall apply.
    (b) Treatment of Agreements.--In the case of any agreement to which 
subsection (a) applies--
            (1) the applicability of the trade authorities procedures 
        to implementing bills shall be determined without regard to the 
        requirements of section 4(a) (relating only to 90 days notice 
        prior to initiating negotiations), and any procedural 
        disapproval resolution under section 5(b)(1)(B) shall not be in 
        order on the basis of a failure or refusal to comply with the 
        provisions of section 4(a); and
            (2) the President shall, as soon as feasible after the 
        enactment of this Act--
                    (A) notify the Congress of the negotiations 
                described in subsection (a), the specific United States 
                objectives in the negotiations, and whether the 
                President is seeking a new agreement or changes to an 
                existing agreement; and
                    (B) before and after submission of the notice, 
                consult regarding the negotiations with the committees 
                referred to in section 4(a)(2) and the Congressional 
                Oversight Group.

SEC. 7. CONGRESSIONAL OVERSIGHT GROUP.

    (a) Members and Functions.--
            (1) In general.--By not later than 60 days after the date 
        of the enactment of this Act, and not later than 30 days after 
        the convening of each Congress, the chairman of the Committee 
        on Ways and Means of the House of Representatives and the 
        chairman of the Committee on Finance of the Senate shall 
        convene the Congressional Oversight Group.
            (2) Membership from the house.--In each Congress, the 
        Congressional Oversight Group shall be comprised of the 
        following Members of the House of Representatives:
                    (A) The chairman and ranking member of the 
                Committee on Ways and Means, and 3 additional members 
                of such Committee (not more than 2 of whom are members 
                of the same political party).
                    (B) The chairman and ranking member, or their 
                designees, of the committees of the House of 
                Representatives which would have, under the Rules of 
                the House of Representatives, jurisdiction over 
                provisions of law affected by a trade agreement 
                negotiations for which are conducted at any time during 
                that Congress and to which this Act would apply.
            (3) Membership from the senate.--In each Congress, the 
        Congressional Oversight Group shall also be comprised of the 
        following members of the Senate:
                    (A) The chairman and ranking Member of the 
                Committee on Finance and 3 additional members of such 
                Committee (not more than 2 of whom are members of the 
                same political party).
                    (B) The chairman and ranking member, or their 
                designees, of the committees of the Senate which would 
                have, under the Rules of the Senate, jurisdiction over 
                provisions of law affected by a trade agreement 
                negotiations for which are conducted at any time during 
                that Congress and to which this Act would apply.
            (4) Accreditation.--Each member of the Congressional 
        Oversight Group described in paragraph (2)(A) and (3)(A) shall 
        be accredited by the United States Trade Representative on 
        behalf of the President as official advisers to the United 
        States delegation in negotiations for any trade agreement to 
        which this Act applies. Each member of the Congressional 
        Oversight Group described in paragraph (2)(B) and (3)(B) shall 
        be accredited by the United States Trade Representative on 
        behalf of the President as official advisers to the United 
        States delegation in the negotiations by reason of which the 
        member is in the Congressional Oversight Group. The 
        Congressional Oversight Group shall consult with and provide 
        advice to the Trade Representative regarding the formulation of 
        specific objectives, negotiating strategies and positions, the 
        development of the applicable trade agreement, and compliance 
        and enforcement of the negotiated commitments under the trade 
        agreement.
            (5) Chair.--The Congressional Oversight Group shall be 
        chaired by the Chairman of the Committee on Ways and Means of 
        the House of Representatives and the Chairman of the Committee 
        on Finance of the Senate.
    (b) Guidelines.--
            (1) Purpose and revision.--The United States Trade 
        Representative, in consultation with the chairmen and ranking 
        minority members of the Committee on Ways and Means of the 
        House of Representatives and the Committee on Finance of the 
        Senate--
                    (A) shall, within 120 days after the date of the 
                enactment of this Act, develop written guidelines to 
                facilitate the useful and timely exchange of 
                information between the Trade Representative and the 
                Congressional Oversight Group established under this 
                section; and
                    (B) may make such revisions to the guidelines as 
                may be necessary from time to time.
            (2) Content.--The guidelines developed under paragraph (1) 
        shall provide for, among other things--
                    (A) regular, detailed briefings of the 
                Congressional Oversight Group regarding negotiating 
                objectives, including the promotion of certain 
                priorities referred to in section 2(c), and positions 
                and the status of the applicable negotiations, 
                beginning as soon as practicable after the 
                Congressional Oversight Group is convened, with more 
                frequent briefings as trade negotiations enter the 
                final stage;
                    (B) access by members of the Congressional 
                Oversight Group, and staff with proper security 
                clearances, to pertinent documents relating to the 
                negotiations, including classified materials;
                    (C) the closest practicable coordination between 
                the Trade Representative and the Congressional 
                Oversight Group at all critical periods during the 
                negotiations, including at negotiation sites; and
                    (D) after the applicable trade agreement is 
                concluded, consultation regarding ongoing compliance 
                and enforcement of negotiated commitments under the 
                trade agreement.
    (c) Request for Meeting.--Upon the request of a majority of the 
Congressional Oversight Group, the President shall meet with the 
Congressional Oversight Group before initiating negotiations with 
respect to a trade agreement, or at any other time concerning the 
negotiations.

SEC. 8. ADDITIONAL IMPLEMENTATION AND ENFORCEMENT REQUIREMENTS.

    (a) In General.--At the time the President submits to the Congress 
the final text of an agreement pursuant to section 5(a)(1)(C), the 
President shall also submit a plan for implementing and enforcing the 
agreement. The implementation and enforcement plan shall include the 
following:
            (1) Border personnel requirements.--A description of 
        additional personnel required at border entry points, including 
        a list of additional customs and agricultural inspectors.
            (2) Agency staffing requirements.--A description of 
        additional personnel required by Federal agencies responsible 
        for monitoring and implementing the trade agreement, including 
        personnel required by the Office of the United States Trade 
        Representative, the Department of Commerce, the Department of 
        Agriculture (including additional personnel required to 
        implement sanitary and phytosanitary measures in order to 
        obtain market access for United States exports), the Department 
        of the Treasury, and such other agencies as may be necessary.
            (3) Customs infrastructure requirements.--A description of 
        the additional equipment and facilities needed by the United 
        States Customs Service.
            (4) Impact on state and local governments.--A description 
        of the impact the trade agreement will have on State and local 
        governments as a result of increases in trade.
            (5) Cost analysis.--An analysis of the costs associated 
        with each of the items listed in paragraphs (1) through (4).
    (b) Budget Submission.--The President shall include a request for 
the resources necessary to support the plan described in subsection (a) 
in the first budget that the President submits to the Congress after 
the submission of the plan.

SEC. 9. COMMITTEE STAFF.

    The grant of trade promotion authority under this Act is likely to 
increase the activities of the primary committees of jurisdiction in 
the area of international trade. In addition, the creation of the 
Congressional Oversight Group under section 7 will increase the 
participation of a broader number of Members of Congress in the 
formulation of United States trade policy and oversight of the 
international trade agenda for the United States. The primary 
committees of jurisdiction should have adequate staff to accommodate 
these increases in activities.

SEC. 10. CONFORMING AMENDMENTS.

    (a) In General.--Title I of the Trade Act of 1974 (19 U.S.C. 2111 
et seq.) is amended as follows:
            (1) Implementing bill.--
                    (A) Section 151(b)(1) (19 U.S.C. 2191(b)(1)) is 
                amended by striking ``section 1103(a)(1) of the Omnibus 
                Trade and Competitiveness Act of 1988, or section 282 
                of the Uruguay Round Agreements Act'' and inserting 
                ``section 282 of the Uruguay Round Agreements Act, or 
                section 5(a)(1) of the Bipartisan Trade Promotion 
                Authority Act of 2001''.
                    (B) Section 151(c)(1) (19 U.S.C. 2191(c)(1)) is 
                amended by striking ``or section 282 of the Uruguay 
                Round Agreements Act'' and inserting ``, section 282 of 
                the Uruguay Round Agreements Act, or section 5(a)(1) of 
                the Bipartisan Trade Promotion Authority Act of 2001''.
            (2) Advice from international trade commission.--Section 
        131 (19 U.S.C. 2151) is amended--
                    (A) in subsection (a)--
                            (i) in paragraph (1), by striking ``section 
                        123 of this Act or section 1102 (a) or (c) of 
                        the Omnibus Trade and Competitiveness Act of 
                        1988,'' and inserting ``section 123 of this Act 
                        or section 3(a) or (b) of the Bipartisan Trade 
                        Promotion Authority Act of 2001,''; and
                            (ii) in paragraph (2), by striking 
                        ``section 1102 (b) or (c) of the Omnibus Trade 
                        and Competitiveness Act of 1988'' and inserting 
                        ``section 3(b) of the Bipartisan Trade 
                        Promotion Authority Act of 2001'';
                    (B) in subsection (b), by striking ``section 
                1102(a)(3)(A)'' and inserting ``section 3(a)(3)(A) of 
                the Bipartisan Trade Promotion Authority Act of 2001''; 
                and
                    (C) in subsection (c), by striking ``section 1102 
                of the Omnibus Trade and Competitiveness Act of 1988,'' 
                and inserting ``section 3 of the Bipartisan Trade 
                Promotion Authority Act of 2001,''.
            (3) Hearings and advice.--Sections 132, 133(a), and 134(a) 
        (19 U.S.C. 2152, 2153(a), and 2154(a)) are each amended by 
        striking ``section 1102 of the Omnibus Trade and 
        Competitiveness Act of 1988,'' each place it appears and 
        inserting ``section 3 of the Bipartisan Trade Promotion 
        Authority Act of 2001,''.
            (4) Prerequisites for offers.--Section 134(b) (19 U.S.C. 
        2154(b)) is amended by striking ``section 1102 of the Omnibus 
        Trade and Competitiveness Act of 1988'' and inserting ``section 
        3 of the Bipartisan Trade Promotion Authority Act of 2001''.
            (5) Advice from private and public sectors.--Section 135 
        (19 U.S.C. 2155) is amended--
                    (A) in subsection (a)(1)(A), by striking ``section 
                1102 of the Omnibus Trade and Competitiveness Act of 
                1988'' and inserting ``section 3 of the Bipartisan 
                Trade Promotion Authority Act of 2001'';
                    (B) in subsection (e)(1)--
                            (i) by striking ``section 1102 of the 
                        Omnibus Trade and Competitiveness Act of 1988'' 
                        each place it appears and inserting ``section 3 
                        of the Bipartisan Trade Promotion Authority Act 
                        of 2001''; and
                            (ii) by striking ``section 1103(a)(1)(A) of 
                        such Act of 1988'' and inserting ``section 
                        5(a)(1)(A) of the Bipartisan Trade Promotion 
                        Authority Act of 2001''; and
                    (C) in subsection (e)(2), by striking ``section 
                1101 of the Omnibus Trade and Competitiveness Act of 
                1988'' and inserting ``section 2 of the Bipartisan 
                Trade Promotion Authority Act of 2001''.
            (6) Transmission of agreements to congress.--Section 162(a) 
        (19 U.S.C. 2212(a)) is amended by striking ``or under section 
        1102 of the Omnibus Trade and Competitiveness Act of 1988'' and 
        inserting ``or under section 3 of the Bipartisan Trade 
        Promotion Authority Act of 2001''.
    (b) Application of Certain Provisions.--For purposes of applying 
sections 125, 126, and 127 of the Trade Act of 1974 (19 U.S.C. 2135, 
2136(a), and 2137)--
            (1) any trade agreement entered into under section 3 shall 
        be treated as an agreement entered into under section 101 or 
        102, as appropriate, of the Trade Act of 1974 (19 U.S.C. 2111 
        or 2112); and
            (2) any proclamation or Executive order issued pursuant to 
        a trade agreement entered into under section 3 shall be treated 
        as a proclamation or Executive order issued pursuant to a trade 
        agreement entered into under section 102 of the Trade Act of 
        1974.

SEC. 11. DEFINITIONS.

    In this Act:
            (1) Agreement on agriculture.--The term ``Agreement on 
        Agriculture'' means the agreement referred to in section 
        101(d)(2) of the Uruguay Round Agreements Act (19 U.S.C. 
        3511(d)(2)).
            (2) Core labor standards.--The term ``core labor 
        standards'' means--
                    (A) the right of association;
                    (B) the right to organize and bargain collectively;
                    (C) a prohibition on the use of any form of forced 
                or compulsory labor;
                    (D) a minimum age for the employment of children; 
                and
                    (E) acceptable conditions of work with respect to 
                minimum wages, hours of work, and occupational safety 
                and health.
            (3) GATT 1994.--The term ``GATT 1994'' has the meaning 
        given that term in section 2 of the Uruguay Round Agreements 
        Act (19 U.S.C. 3501).
            (4) ILO.--The term ``ILO'' means the International Labor 
        Organization.
            (5) United states person.--The term ``United States 
        person'' means--
                    (A) a United States citizen;
                    (B) a partnership, corporation, or other legal 
                entity organized under the laws of the United States; 
                and
                    (C) a partnership, corporation, or other legal 
                entity that is organized under the laws of a foreign 
                country and is controlled by entities described in 
                subparagraph (B) or United States citizens, or both.
            (6) Uruguay round agreements.--The term ``Uruguay Round 
        Agreements'' has the meaning given that term in section 2(7) of 
        the Uruguay Round Agreements Act (19 U.S.C. 3501(7)).
            (7) World trade organization; wto.--The terms ``World Trade 
        Organization'' and ``WTO'' mean the organization established 
        pursuant to the WTO Agreement.
            (8) WTO agreement.--The term ``WTO Agreement'' means the 
        Agreement Establishing the World Trade Organization entered 
        into on April 15, 1994.

            Passed the House of Representatives December 6, 2001.

            Attest:

                                                                 Clerk.
107th CONGRESS

  1st Session

                               H. R. 3005

_______________________________________________________________________

                                 AN ACT

To extend trade authorities procedures with respect to reciprocal trade 
                              agreements.