[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H. Res. 27 Introduced in House (IH)]
107th CONGRESS
1st Session
H. RES. 27
Strongly urging the President to file a complaint at the World Trade
Organization against oil-producing countries for violating trade rules
that prohibit quantitative limitations on the import or export of
resources or products across borders.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
January 31, 2001
Mr. DeFazio submitted the following resolution; which was referred to
the Committee on Ways and Means
_______________________________________________________________________
RESOLUTION
Strongly urging the President to file a complaint at the World Trade
Organization against oil-producing countries for violating trade rules
that prohibit quantitative limitations on the import or export of
resources or products across borders.
Whereas no free market exists in oil production because of collusion among
large oil-producing countries;
Whereas the Organization of the Petroleum Exporting Countries (OPEC) and other
oil-producing countries have repeatedly agreed to coordinated cutbacks
in production, thus manipulating world oil markets, resulting in de
facto price fixing;
Whereas this manipulation led to the highest price per barrel of oil in nearly a
decade, substantial increases in consumer prices for items such as home
heating oil and gasoline, and continued price volatility;
Whereas rising oil prices greatly harm consumers, farmers, small businesses, and
manufacturers, increase the likelihood of inflation, increase the cost
of conducting interstate and international commerce, and pose a strong
threat to continued economic growth;
Whereas article XI of the General Agreement on Tariffs and Trade (GATT 1994)
prohibits members of the World Trade Organization (WTO) from setting
quantitative restrictions on the import or export of resources or
products across their borders; specifically the language reads ``No
prohibitions or restrictions other than duties, taxes or other charges,
whether made effective through quotas, import or export licenses or
other measures, shall be instituted or maintained by any contracting
party on the importation of any product of the territory of any other
contracting party or on the exportation or sale for export of any
product destined for the territory of any other contracting party.'';
Whereas the precise meaning of this provision was spelled out in a GATT Panel
Report issued in 1988 entitled ``Japan--Trade in Semi-conductors'',
which noted, ``. . . this wording [in article XI] was comprehensive: it
applied to all measures instituted or maintained by a contracting party
prohibiting or restricting the importation, exportation or sale for
export of products other than measures that take the form of duties,
taxes, or other charges . . . This wording indicated clearly that any
measure instituted or maintained by a contracting party which restricted
the exportation or sale for export of products was covered by this
provision, irrespective of the legal status of the measure.'';
Whereas oil production restrictions clearly qualify as a ``quantitative
restriction'' based on the original WTO rules and the 1988 GATT panel
report, which certify that only ``duties, taxes or other charges'' are
allowable, not pacts among countries to limit production of a product
for export;
Whereas article XX of GATT 1994, which sets out a series of exceptions to
article XI, notes that none of the exceptions are valid if they are
``applied in a manner which would constitute . . . a disguised
restriction on international trade'', a phrase which describes OPEC's
production restrictions;
Whereas of the 11 OPEC countries, 6 are members of the WTO (Kuwait, Indonesia,
Nigeria, Qatar, Venezuela, and United Arab Emirates), 2 have observer
status and have applied to join the WTO (Saudi Arabia and Algeria), and
only 3 have no relationship with the WTO (Libya, Iran, and Iraq);
Whereas of the remaining large oil-producing countries, Mexico and Norway are
members of the WTO, and Russia and Oman have applied for membership; and
Whereas given the substantial WTO membership and pending membership of oil-
producing countries, filing a complaint would likely have an immediate
impact on the current and future behavior of these countries: Now,
therefore, be it
Resolved, That the Congress strongly urges the President of the
United States to file a complaint in the World Trade Organization
against oil-producing countries for violating their obligations under
the rules of that organization.
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