[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4177 Introduced in House (IH)]






108th CONGRESS
  2d Session
                                H. R. 4177

 To establish a Manufacturing and Technology Administration to promote 
 and assist American manufacturers, to provide incentives to American 
                 manufacturers, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             April 20, 2004

  Mr. Larson of Connecticut (for himself, Ms. DeLauro, Mr. Frost, Mr. 
 Green of Texas, Mr. Holden, and Mr. Brady of Pennsylvania) introduced 
  the following bill; which was referred to the Committee on Ways and 
    Means, and in addition to the Committees on Science, Financial 
Services, International Relations, Government Reform, and Rules, for a 
 period to be subsequently determined by the Speaker, in each case for 
consideration of such provisions as fall within the jurisdiction of the 
                          committee concerned

_______________________________________________________________________

                                 A BILL


 
 To establish a Manufacturing and Technology Administration to promote 
 and assist American manufacturers, to provide incentives to American 
                 manufacturers, and for other purposes.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``American Workers and Manufacturers 
Support Act''.

SEC. 2. TABLE OF CONTENTS.

    The table of contents for this Act is as follows:

Sec. 1. Short title.
Sec. 2. Table of contents.
 TITLE I--ESTABLISHMENT OF MANUFACTURING AND TECHNOLOGY ADMINISTRATION

Sec. 101. Manufacturing and Technology Administration.
Sec. 102. Study of abusive practices by large manufacturers and 
                            retailers.
Sec. 103. Study of feasibility of labeling requirements.
Sec. 104. Studies by National Academy of Sciences.
Sec. 105. Manufacturing research and implementation; development of new 
                            manufacturing technologies.
Sec. 106. Advanced Technology Program.
           TITLE II--WTO DISPUTE SETTLEMENT REVIEW COMMISSION

Sec. 201. Establishment of Commission.
Sec. 202. Duties of the Commission.
Sec. 203. Powers of the Commission.
Sec. 204. Review of dispute settlement procedures and participation in 
                            the WTO.
Sec. 205. Participation in WTO panel proceedings.
Sec. 206. Definitions.
 TITLE III--REFORM OF EXPORT-IMPORT BANK AND OVERSEAS PRIVATE INVESTOR 
                              CORPORATION

Sec. 301. Restrictions on Export-Import Bank assistance.
Sec. 302. Restrictions on the Overseas Private Investment Corporation.
                    TITLE IV--CURRENCY MANIPULATION

Sec. 401. Negotiation period regarding currency manipulation.
Sec. 402. Findings of fact and report regarding currency manipulation.
Sec. 403. Proceedings regarding currency manipulation.
Sec. 404. Additional reports and recommendations.
Sec. 405. Currency manipulation defined.
               TITLE V--INTERNAL REVENUE CODE AMENDMENTS

Sec. 501. Disincentivization of corporate expatriation to avoid United 
                            States income tax.
Sec. 502. Inclusion of income from U.S. imports in subpart F income.
Sec. 503. Denial of treaty benefits for certain deductible payments.
Sec. 504. Repeal of exclusion for extraterritorial income.
Sec. 505. Deduction relating to income attributable to United States 
                            production activities.
                   TITLE VI--BUY AMERICAN PROVISIONS

Sec. 601. Requirements for waivers.
Sec. 602. GAO report and recommendations.
Sec. 603. Dual use technologies.
         TITLE VII--ESTABLISHMENT OF CONGRESSIONAL TRADE OFFICE

Sec. 701. Findings.
Sec. 702. Establishment of office.
Sec. 703. Public access to data.
Sec. 704. Authorization of appropriations.

 TITLE I--ESTABLISHMENT OF MANUFACTURING AND TECHNOLOGY ADMINISTRATION

SEC. 101. MANUFACTURING AND TECHNOLOGY ADMINISTRATION.

    Section 5 of the Stevenson-Wydler Technology Innovation Act of 1980 
(15 U.S.C. 3704) is amended to read as follows:

``SEC. 5. MANUFACTURING AND TECHNOLOGY.

    ``(a) Establishment.--There is established in the Department of 
Commerce a Manufacturing and Technology Administration, which shall 
operate in accordance with the provisions, findings, and purposes of 
this Act. The Manufacturing and Technology Administration shall 
include--
            ``(1) the National Institute of Standards and Technology;
            ``(2) the National Technical Information Service; and
            ``(3) a policy analysis office, which shall be known as the 
        Office of Manufacturing and Technology Policy.
    ``(b) Under Secretary and Assistant Secretaries.--The President 
shall appoint, by and with the advice and consent of the Senate, to the 
extent provided for in appropriations Acts--
            ``(1) an Under Secretary of Commerce for Manufacturing and 
        Technology, who shall be compensated at the rate provided for 
        level III of the Executive Schedule in section 5314 of title 5, 
        United States Code;
            ``(2) an Assistant Secretary of Manufacturing who shall 
        serve as a policy analyst for the Under Secretary; and
            ``(3) an Assistant Secretary of Technology who shall serve 
        as a policy analyst for the Under Secretary.
    ``(c) Duties.--The Secretary, through the Under Secretary, as 
appropriate, shall--
            ``(1) manage the Manufacturing and Technology 
        Administration and supervise its agencies, programs, and 
        activities;
            ``(2) conduct manufacturing and technology policy analyses 
        to improve United States industrial productivity, manufacturing 
        capabilities, and innovation, and cooperate with United States 
        industry to improve its productivity, manufacturing 
        capabilities, and ability to compete successfully in an 
        international marketplace;
            ``(3) identify manufacturing and technological needs, 
        problems, and opportunities within and across industrial 
        sectors, that, if addressed, could make significant 
        contributions to the economy of the United States;
            ``(4) assess whether the capital, technical, and other 
        resources being allocated to domestic industrial sectors which 
        are likely to generate new technologies are adequate to meet 
        private and social demands for goods and services and to 
        promote productivity and economic growth;
            ``(5) propose and support studies and policy experiments, 
        in cooperation with other Federal agencies, to determine the 
        effectiveness of measures for improving United States 
        manufacturing capabilities and productivity;
            ``(6) provide that cooperative efforts to stimulate 
        industrial competitiveness and innovation be undertaken between 
        the Under Secretary and other officials in the Department of 
        Commerce responsible for such areas as trade and economic 
        assistance;
            ``(7) encourage and assist the creation of centers and 
        other joint initiatives by State or local governments, regional 
        organizations, private businesses, institutions of higher 
        education, nonprofit organizations, or Federal laboratories to 
        encourage technology transfer, to encourage innovation, and to 
        promote an appropriate climate for investment in technology-
        related industries;
            ``(8) propose and encourage cooperative research involving 
        appropriate Federal entities, State or local governments, 
        regional organizations, colleges or universities, nonprofit 
        organizations, or private industry to promote the common use of 
        resources, to improve training programs and curricula, to 
        stimulate interest in manufacturing and technology careers, and 
        to encourage the effective dissemination of manufacturing and 
        technology skills within the wider community;
            ``(9) serve as a focal point for discussions among United 
        States companies on topics of interest to industry and labor, 
        including discussions regarding manufacturing, competitiveness, 
        and emerging technologies;
            ``(10) consider government measures with the potential of 
        advancing United States technological innovation and exploiting 
        innovations of foreign origin and publish the results of 
        studies and policy experiments; and
            ``(11) assist in the implementation of the Metric 
        Conversion Act of 1975 (15 U.S.C. 205a et seq.).
    ``(d) Manufacturing Advisory Board.--
            ``(1) Establishment and composition.--There is established 
        a Manufacturing Advisory Board within the Manufacturing and 
        Technology Administration. The Under Secretary or the Assistant 
        Secretary of Manufacturing shall chair the Advisory Board. The 
        Advisory Board shall be composed of 14 additional members 
        appointed by the Under Secretary as follows:
                    ``(A) 1 representative each from the National 
                Association of Manufacturers, the National Coalition 
                for Advanced Manufacturing, and the Modernization 
                Forum.
                    ``(B) 4 members from outside the Federal Government 
                who are eminent in the manufacturing industry, at least 
                2 of whom are representatives of small and medium-sized 
                companies in such industries.
                    ``(C) 4 members from Federal agencies who have 
                manufacturing science and technology expertise, at 
                least 1 of whom shall be from the National Institute of 
                Standards and Technology.
                    ``(D) 3 members from labor unions, a majority of 
                whose members have manufacturing jobs.
            ``(2) Duties.--The duties of the Advisory Board shall be--
                    ``(A) to identify manufacturing issues relative to 
                manufacturing technology and competitiveness;
                    ``(B) to advise the Under Secretary on 
                manufacturing issues, including manufacturing 
                activities at the National Institute of Standards and 
                Technology, and make recommendations for actions by the 
                Federal Government; and
                    ``(C) to report its finding and recommendations to 
                the Under Secretary and the Director of the Office of 
                Management and Budget.
            ``(3) Terms of office.--The term of office of each member 
        of the Advisory Board shall be 4 years, except that--
                    ``(A) of the initial members, 3 shall be appointed 
                for terms of 1 year, 3 shall be appointed for terms of 
                2 years, 4 shall be appointed for terms of 3 years, and 
                4 shall be appointed for terms of 4 years; and
                    ``(B) any member appointed to fill a vacancy in the 
                Advisory Board shall serve for the remainder of the 
                term for which his predecessor was appointed.
            ``(4) Quorum.--The Advisory Board shall not act in the 
        absence of a quorum, which shall consist of 8 members.
            ``(5) Allowance for travel expenses.--Members of the 
        Advisory Board, other than full-time employees of the Federal 
        Government, while attending meetings of the Board or while 
        otherwise performing duties at the request of the Chairman 
        while away from their home or a regular place of business, may 
        be allowed travel expenses in accordance with subchapter I of 
        chapter 57 of title 5, United States Code.
            ``(6) Staff services and utilization of federal 
        personnel.--To provide the staff services necessary to assist 
        the Advisory Board in carrying out its functions, the Advisory 
        Board may utilize personnel from the National Institute of 
        Standards and Technology or any other agency of the Federal 
        Government with the consent of the head of the agency.
    ``(e) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary for the activities of the Under 
Secretary--
            ``(1) $2,000,000 for fiscal year 2004;
            ``(2) $2,070,000 for fiscal year 2005;
            ``(3) $2,140,000 for fiscal year 2006; and
            ``(4) $2,220,000 for fiscal year 2007.''.

SEC. 102. STUDY OF ABUSIVE PRACTICES BY LARGE MANUFACTURERS AND 
              RETAILERS.

    (a) Study.--The Under Secretary of Commerce for Manufacturing and 
Technology (appointed pursuant to section 101 of this title) shall 
conduct a study of practices by large manufacturers and retailers 
whereby such manufacturers and retailers place large contract orders 
and later cancel such orders after only a portion of the goods or 
services are provided, and the impact that such practices have on small 
businesses.
    (b) Report.--Not later than 1 year after the date of enactment of 
this title, the Under Secretary of Commerce for Manufacturing and 
Technology shall transmit a report to the Congress on the findings of 
the study required by subsection (a). The report shall propose 
guidelines to address abusive practices and recommendations for a means 
to allow small manufacturers to confidentially report such practices.

SEC. 103. STUDY OF FEASIBILITY OF LABELING REQUIREMENTS.

    (a) Study.--The Under Secretary of Commerce for Manufacturing and 
Technology (appointed pursuant to section 101 of this title) shall 
conduct a study of the feasibility and impact of laws or regulations 
requiring all products retailing at more than $15 to state clearly on 
the labels the percentage of components made in the United States.
    (b) Report.--Not later than 1 year after the date of enactment of 
this title, the Under Secretary of Commerce for Manufacturing and 
Technology shall transmit a report to the Congress on the findings of 
the study required by subsection (a). The report shall examine the cost 
of such a labeling requirement to manufacturers and consumers, shall 
include recommendations for any necessary legislation, and shall 
propose a timetable for implementation of such requirements.

SEC. 104. STUDIES BY NATIONAL ACADEMY OF SCIENCES.

    Section 24 of the National Institute of Standards and Technology 
Act (15 U.S.C. 278j) is amended--
            (1) by striking ``The Director may'' through ``assist the'' 
        and inserting ``The Under Secretary of Commerce for 
        Manufacturing and Technology and the Director may periodically 
        enter into an arrangement with the National Academy of Sciences 
        for advice and studies to assist the Manufacturing and 
        Technology Administration and the''; and
            (2) in paragraph (2) by inserting ``the Manufacturing and 
        Technology Administration and'' after ``potential activities 
        of''.

SEC. 105. MANUFACTURING RESEARCH AND IMPLEMENTATION; DEVELOPMENT OF NEW 
              MANUFACTURING TECHNOLOGIES.

    (a) National Institutes of Standards and Technology Laboratory 
Activities.--There are authorized to be appropriated to the Secretary 
of Commerce for Manufacturing Engineering activities at the Scientific 
and Technical Research and Services Laboratory of the National 
Institute of Standards and Technology--
            (1) $60,000,000 for fiscal year 2004, of which $30,000,000 
        shall be for the research and development program on 
        manufacturing under section 33 of the National Institute of 
        Standards and Technology Act;
            (2) $62,100,000 for fiscal year 2005, of which $31,050,000 
        shall be for the research and development program on 
        manufacturing under section 33 of the National Institute of 
        Standards and Technology Act;
            (3) $64,270,000 for fiscal year 2006, of which $32,140,000 
        shall be for the research and development program on 
        manufacturing under section 33 of the National Institute of 
        Standards and Technology Act; and
            (4) $68,850,000 for fiscal year 2007, of which $33,260,000 
        shall be for the research and development program on 
        manufacturing under section 33 of the National Institute of 
        Standards and Technology Act.
    (b) National Institutes of Standards and Technology Research and 
Development Program.--The National Institute of Standards and 
Technology Act is amended--
            (1) by redesignating the first section 32 as section 34 and 
        moving it to the end of the Act; and
            (2) by inserting before the section moved by paragraph (1) 
        the following new section:

``SEC. 33. RESEARCH AND DEVELOPMENT PROGRAM ON MANUFACTURING.

    ``(a) Establishment.--The Director shall establish a program of 
assistance to institutions of higher education or nonprofit research 
institutions that enter into partnerships with for-profit entities to 
support, promote, and enhance manufacturing research and development. 
The program shall--
            ``(1) include multidisciplinary research; and
            ``(2) include research directed toward addressing the needs 
        identified through the Under Secretary of Commerce for 
        Manufacturing and Technology, the Office of Manufacturing and 
        Technology Policy, and the Manufacturing Advisory Board.
    ``(b) Fellowships.--In order to promote the development of a robust 
research community working at the leading edge of manufacturing 
sciences, the Director shall establish a program to award--
            ``(1) postdoctoral research fellowships to individuals who 
        are seeking research positions at institutions, including the 
        Institute, engaged in research activities related to 
        manufacturing sciences; and
            ``(2) senior research fellowships to individuals seeking 
        research positions at institutions, including the Institute, 
        engaged in research activities related to manufacturing 
        sciences. To be eligible for an award under this subsection, an 
        individual shall submit an application to the Director at such 
        time, in such manner, and containing such information as the 
        Director may require. Under this subsection, the Director shall 
        provide stipends for postdoctoral research fellowships at a 
        level consistent with the Institute's Post Doctoral Research 
        Fellowship Program, and senior research fellowships at levels 
        consistent with support for a faculty member in a sabbatical 
        position.
    ``(c) Awards, Applications.--The Director is authorized to award 
grants or cooperative agreements to institutions of higher education to 
carry out the program established under subsection (a). To be eligible 
for an award under such subsection, an institution shall submit an 
application to the Director at such time, in such manner, and 
containing such information as the Director may require. The 
application shall include, at minimum, a description of how the for-
profit entities and any other partners will participate in developing 
and carrying out the research agenda of the partnership.
    ``(d) Program Operation.--(1) The program established under 
subsection (a) shall be managed by individuals who have expertise in 
research related to manufacturing technology. The Director shall 
designate such individuals program managers.
    ``(2) Program managers designated under paragraph (1) may be new or 
existing employees of the Institute or individuals on assignment at the 
Institute under the Intergovernmental Personnel Act of 1970.
    ``(3) Program managers designated under paragraph (1) shall be 
responsible for--
            ``(A) establishing and publicizing the broad research and 
        development goals for the program;
            ``(B) soliciting applications for specific research 
        projects to address the goals developed under subparagraph (A); 
        and
            ``(C) selecting research projects for support under the 
        program from among applications submitted to the Institute, 
        following consideration of--
                    ``(i) the novelty and scientific and technical 
                merit of the proposed projects;
                    ``(ii) the demonstrated capabilities of the 
                individual or individuals submitting the applications 
                to successfully carry out the proposed research;
                    ``(iii) the impact the proposed projects will have 
                on increasing the number of individuals with research 
                expertise in manufacturing sciences; and
                    ``(iv) the nature of the participation by for-
                profit entities and the extent to which the proposed 
                projects address the concerns of industry.
    ``(e) Review of Program.--The Director shall enter into an 
arrangement with the National Academy of Sciences for a comprehensive 
review of the program established under subsection (a) during the third 
year of the program. Such review shall include an assessment of the 
quality and utility of the research conducted and the relevance of the 
research results obtained to the goals of the program. The Director 
shall submit a report to Congress on the results of the review under 
this subsection not later than 4 years after the initiation of the 
program.
    ``(f) Definition.--For the purposes of this section the term 
`institution of higher education' has the meaning given that term in 
section 101 of the Higher Education Act of 1965 (20 U.S.C. 1001).''.

SEC. 106. ADVANCED TECHNOLOGY PROGRAM.

    (a) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary of Commerce for the Advanced Technology 
Program under section 28 of the National Institute of Standards and 
Technology Act (15 U.S.C. 278n)--
            (1) $219,400,000 for fiscal year 2004, including 
        $80,700,000 for new awards, of which $20,000,000 shall be for a 
        focused competition in manufacturing sciences;
            (2) $262,900,000 for fiscal year 2005, including 
        $80,700,000 for new awards, of which $20,000,000 shall be for a 
        focused competition in manufacturing sciences;
            (3) $280,900,000 for fiscal year 2006, including 
        $80,700,000 for new awards, of which $20,000,000 shall be for a 
        focused competition in manufacturing sciences; and
            (4) $290,400,000 for fiscal year 2007, including 
        $80,700,000 for new awards, of which $20,000,000 shall be for a 
        focused competition in manufacturing sciences.
    (b) University Leadership of Joint Ventures.--
            (1) Joint venture aid.--Section 28(b)(1) of the National 
        Institute of Standards and Technology Act (15 U.S.C. 
        278n(b)(1)) is amended by striking ``industry-led United 
        States'' and all that follows through ``organizations)'' and 
        inserting ``joint ventures''.
            (2) Definition.--Section 28(j)(1) of the National Institute 
        of Standards and Technology Act (15 U.S.C. 278n(j)(1)) is 
        amended by striking ``two or more persons'' and inserting ``a 
        combination of two or more persons (which shall include at 
        least two companies, each of which participates substantially 
        in the joint venture, and may include one or more institutions 
        of higher education or nonprofit organizations)''.
    (c) Intellectual Property Rights Ownership.--Section 28(d)(11) of 
the National Institute of Standards and Technology Act (15 U.S.C. 
278n(d)(11)) is amended by striking ``(11)(A)'' and all that follows 
through ``with such intellectual property.'' and inserting the 
following:
            ``(11)(A) Title to any intellectual property developed by a 
        joint venture from assistance provided under this section may 
        vest in any participant in the joint venture, as agreed by the 
        members of the joint venture, notwithstanding section 202(a) 
        and (b) of title 35, United States Code. The United States may 
        reserve a nonexclusive, nontransferable, irrevocable, paid-up 
        license, to have practiced for or on behalf of the United 
        States in connection with any such intellectual property, but 
        shall not, in the exercise of such license, publicly disclose 
        proprietary information related to the license. Title to any 
        such intellectual property shall not be transferred or passed, 
        except to a participant in the joint venture, until the 
        expiration of the first patent obtained in connection with such 
        intellectual property.''.
    (d) Barriers to Product Development.--Section 28(d) of the National 
Institute of Standards and Technology Act (15 U.S.C. 278n(d)) is 
amended by adding at the end the following new paragraph:
            ``(12) No contract or award may be made under this section 
        for any project unless the project may remove a scientific or 
        technological barrier to product development.''.
    (e) Project Review and Evaluation.--Section 28(g) of the National 
Institute of Standards and Technology Act (15 U.S.C. 278n(g)) is 
amended to read as follows:
    ``(g) Industry and Peer Review of Proposals.--(1) In order to 
analyze the need for or the value of any proposal made by a joint 
venture or company requesting the Secretary's assistance under this 
section, or to monitor the progress of any project which receives funds 
under this section, the Secretary, the Under Secretary of Commerce for 
Manufacturing and Technology, and the Director may, notwithstanding any 
other provision of law, meet with such industry and other expert 
sources, without a proprietary or financial interest in proposals being 
evaluated, as they consider useful and appropriate.
    ``(2) In order to better assess whether specific innovations to be 
pursued are being adequately supported by the private sector, the 
Director shall conduct a study of, and thereafter monitor, whether the 
Secretary, the Undersecretary of Commerce for Manufacturing and 
Technology, and the Director could benefit from advice and information 
from additional industry and other expert sources, without a 
proprietary or financial interest in proposals being evaluated. Not 
later than one year after the date of the enactment of this Act, and 
biennially thereafter, the Director shall transmit to the Congress a 
report containing the results of the study and monitoring under this 
paragraph.''.

           TITLE II--WTO DISPUTE SETTLEMENT REVIEW COMMISSION

SEC. 201. ESTABLISHMENT OF COMMISSION.

    (a) Establishment.--There is established a commission to be known 
as the WTO Dispute Settlement Review Commission (in this title referred 
to as the ``Commission'').
    (b) Membership.--
            (1) Composition.--The Commission shall be composed of 5 
        members, all of whom shall be judges of the Federal judicial 
        circuits and shall be appointed by the President, after 
        consultation with the Majority Leader and Minority Leader of 
        the House of Representatives, and the Majority Leader and 
        Minority Leader of the Senate.
            (2) Date.--The appointments of the members of the 
        Commission shall be made no later than 60 days after the date 
        of the enactment of this Act.
            (3) In general.--Members of the Commission first appointed 
        shall each be appointed for a term of 5 years. After the 
        initial 5-year term, 3 members of the Commission shall be 
        appointed for terms of 3 years and the remaining 2 members 
        shall be appointed for terms of 2 years.
            (4) Vacancies.--
                    (A) In general.--Any vacancy on the Commission 
                shall not affect its powers, but shall be filled in the 
                same manner as the original appointment and shall be 
                subject to the same conditions as the original 
                appointment.
                    (B) Unexpired term.--An individual chosen to fill a 
                vacancy shall be appointed for the unexpired term of 
                the member replaced.

SEC. 202. DUTIES OF THE COMMISSION.

    (a) Review of WTO Dispute Settlement Reports.--
            (1) In general.--The Commission shall review--
                    (A) all reports of dispute settlement panels or the 
                Appellate Body of the World Trade Organization in 
                proceedings initiated by other parties to the WTO which 
                are adverse to the United States and which are adopted 
                by the Dispute Settlement Body, and
                    (B) upon request of the United States Trade 
                Representative, any other report of a dispute 
                settlement panel or the Appellate Body which is adopted 
                by the Dispute Settlement Body.
            (2) Scope of review.--In the case of reports described in 
        paragraph (1), the Commission shall review the report and 
        determine whether--
                    (A) the panel or the Appellate Body, as the case 
                may be, exceeded its authority or its terms of 
                reference;
                    (B) the panel or the Appellate Body, as the case 
                may be, added to the obligations of or diminished the 
                rights of the United States under the Uruguay Round 
                agreement which is the subject of report;
                    (C) the panel or the Appellate Body, as the case 
                may be, acted arbitrarily or capriciously, engaged in 
                misconduct, or demonstrably departed from the 
                procedures specified for panels and Appellate Bodies in 
                the applicable Uruguay Round Agreement; and
                    (D) the report of the panel or the Appellate Body, 
                as the case may be, deviated from the applicable 
                standard of review, including, in antidumping, 
                countervailing duty, and other unfair trade remedy 
                cases, the standard of review set forth in Article 17.6 
                of the Agreement on Implementation of Article VI of the 
                General Agreement on Tariffs and Trade 1994.
            (3) Affirmative determination.--If the Commission makes an 
        affirmative determination with respect to the action of a panel 
        or an Appellate Body under subparagraph (A), (B), (C), or (D) 
        of paragraph (2), the Commission shall determine whether the 
        action of the panel or Appellate Body materially affected the 
        outcome of the report of the panel or Appellate Body.
    (b) Determination; Report.--
            (1) Determination.--No later than 120 days after the date 
        on which a report of a panel or Appellate Body described in 
        subsection (a)(1) is adopted by the Dispute Settlement Body, 
        the Commission shall make a written determination with respect 
        to matters described in subsections (a)(2) and (a)(3).
            (2) Reports.--The Commission shall report the 
        determinations described in paragraph (1) to the Congress.

SEC. 203. POWERS OF THE COMMISSION.

    (a) Hearings.--The Commission may hold such hearings, sit and act 
at such times and places, take such testimony, and receive such 
evidence as the Commission considers advisable to carry out the 
purposes of this title.
    (b) Information From Interested Parties and Federal Agencies.--
            (1) Notice of panel or appellate body report.--The United 
        States Trade Representative shall advise the Commission no 
        later than 5 days after the date the Dispute Settlement Body 
        adopts the report of a panel or Appellate Body that is adverse 
        to the United States and shall immediately publish notice of 
        such advice in the Federal Register, along with notice of an 
        opportunity for interested parties to submit comments to the 
        Commission.
            (2) Submissions and requests for information.--Any 
        interested party may submit comments to the Commission 
        regarding the panel or Appellate Body report. The Commission 
        may also secure directly from any Federal department or agency 
        such information as the Commission considers necessary to carry 
        out the provisions of this title. Upon request of the Chairman 
        of the Commission, the head of such department or agency shall 
        furnish such information to the Commission.
            (3) Access to panel and appellate body documents.--The 
        United States Trade Representative shall make available to the 
        Commission all submissions and relevant documents relating to 
        the panel or Appellate Body report, including any information 
        contained in such submissions that is identified by the 
        provider of the information as proprietary information or 
        information treated as confidential by a foreign government.

SEC. 204. REVIEW OF DISPUTE SETTLEMENT PROCEDURES AND PARTICIPATION IN 
              THE WTO.

    (a) Affirmative Report by Commission.--
            (1) In general.--If a joint resolution described in 
        subsection (b)(1) is enacted into law pursuant to the 
        provisions of subsection (c), the President shall undertake 
        negotiations to amend or modify the rules and procedures of the 
        Understanding on Rules and Procedures Governing the Settlement 
        of Disputes to which such joint resolution relates.
            (2) 3 affirmative reports by commission.--If a joint 
        resolution described in subsection (b)(2) is enacted into law 
        pursuant to the provisions of subsection (c), the approval of 
        the Congress, provided under section 101(a) of the Uruguay 
        Round Agreements Act, of the WTO Agreement shall cease to be 
        effective in accordance with the provisions of the joint 
        resolution and the United States shall cease to be a member of 
        the WTO.
    (b) Joint Resolutions Described.--
            (1) In general.--For purposes of subsection (a)(1), a joint 
        resolution is described in this paragraph, if it is a joint 
        resolution of the 2 Houses of Congress and the matter after the 
        resolving clause of such joint resolution is as follows: ``That 
        the Congress authorizes and directs the President to undertake 
        negotiations to amend or modify the rules and procedures of the 
        Understanding on Rules and Procedures Governing the Settlement 
        of Disputes relating to __ with respect to the affirmative 
        determination submitted to the Congress by the WTO Dispute 
        Settlement Review Commission on __'', the first blank space 
        being filled with the specific rules and procedures with 
        respect to which the President is to undertake negotiations and 
        the second blank space being filled with the date of the 
        affirmative determination submitted to the Congress by the 
        Commission pursuant to section 202(b) which has given rise to 
        the joint resolution.
            (2) Withdrawal resolution.--For purposes of subsection 
        (a)(2), a joint resolution is described in this paragraph, if 
        it is a joint resolution of the 2 Houses of Congress and the 
        matter after the resolving clause of such joint resolution is 
        as follows: ``That the Congress authorizes and directs the 
        President to undertake negotiations to amend or modify the 
        rules and procedures of the Understanding on Rules and 
        Procedures Governing the Settlement of Disputes relating to __ 
        with respect to the affirmative report submitted to the 
        Congress by the WTO Dispute Settlement Review Commission on __ 
        and if such negotiations do not result in a satisfactory 
        solution by __, the Congress withdraws its approval, provided 
        under section 101(a) of the Uruguay Round Agreements Act, of 
        the WTO Agreement as defined in section 2(9) of that Act'', the 
        first blank space being filled with the specific rules and 
        procedures with respect to which the President is to undertake 
        negotiations, the second blank space being filled with the date 
        of the affirmative determination submitted to the Congress by 
        the Commission pursuant to section 202(b) which has given rise 
        to the joint resolution, and the third blank space being filled 
        with the date the Congress withdraws its approval of the WTO 
        Agreement.
    (c) Procedural Provisions.--
            (1) In general.--The requirements of this subsection are 
        met if the joint resolution is enacted in accordance with this 
        subsection, and--
                    (A) in the case of a joint resolution described in 
                subsection (b)(1), the Congress adopts and transmits 
                the joint resolution to the President before the end of 
                the 90-day period (excluding any day described in 
                section 154(b) of the Trade Act of 1974), beginning on 
                the date on which the Congress receives an affirmative 
                determination from the Commission described in section 
                202(b); or
                    (B) in the case of a joint resolution described in 
                subsection (b)(2), the Commission has made 3 
                affirmative determinations described in section 202(b) 
                during a 5-year period, and the Congress adopts and 
                transmits the joint resolution to the President before 
                the end of the 90-day period (excluding any day 
                described in section 154(b) of the Trade Act of 1974), 
                beginning on the date on which the Congress receives 
                the third such affirmative determination.
            (2) Presidential veto.--In any case in which the President 
        vetoes the joint resolution, the requirements of this 
        subsection are met if each House of Congress votes to override 
        that veto on or before the later of the last day of the 90-day 
        period referred to in subparagraph (A) or (B) of paragraph (1), 
        whichever is applicable, or the last day of the 15-day period 
        (excluding any day described in section 154(b) of the Trade Act 
        of 1974) beginning on the date on which the Congress receives 
        the veto message from the President.
            (3) Introduction.--
                    (A) Time.--A joint resolution to which this section 
                applies may be introduced at any time on or after the 
                date on which the Commission transmits to the Congress 
                an affirmative determination under section 202(b), and 
                before the end of the 90-day period referred to in 
                subparagraph (A) or (B) of paragraph (1), as the case 
                may be.
                    (B) Any member may introduce.--A joint resolution 
                described in subsection (b) may be introduced in either 
                House of the Congress by any Member of such House.
            (4) Expedited procedures.--
                    (A) General rule.--Subject to the provisions of 
                this subsection, the provisions of subsections (b), 
                (d), (e), and (f) of section 152 of the Trade Act of 
                1974 (19 U.S.C. 2192(b), (d), (e), and (f)) apply to 
                joint resolutions described in subsection (b) to the 
                same extent as such provisions apply to resolutions 
                under such section.
                    (B) Report or discharge of committee.--If the 
                committee of either House to which a joint resolution 
                has been referred has not reported it by the close of 
                the 45th day after its introduction (excluding any day 
                described in section 154(b) of the Trade Act of 1974), 
                such committee shall be automatically discharged from 
                further consideration of the joint resolution and it 
                shall be placed on the appropriate calendar.
                    (C) Finance and ways and means committees.--It is 
                not in order for--
                            (i) the Senate to consider any joint 
                        resolution unless it has been reported by the 
                        Committee on Finance or the committee has been 
                        discharged under subparagraph (B); or
                            (ii) the House of Representatives to 
                        consider any joint resolution unless it has 
                        been reported by the Committee on Ways and 
                        Means or the committee has been discharged 
                        under subparagraph (B).
                    (D) Special rule for house.--A motion in the House 
                of Representatives to proceed to the consideration of a 
                joint resolution may only be made on the second 
                legislative day after the calendar day on which the 
                Member making the motion announces to the House his or 
                her intention to do so.
            (5) Consideration of second resolution not in order.--It 
        shall not be in order in either the House of Representatives or 
        the Senate to consider a joint resolution (other than a joint 
        resolution received from the other House), if that House has 
        previously adopted a joint resolution under this section 
        relating to the same matter.
    (d) Rules of House of Representatives and Senate.--This section is 
enacted by the Congress--
            (1) as an exercise of the rulemaking power of the House of 
        Representatives and the Senate, respectively, and as such is 
        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. 205. PARTICIPATION IN WTO PANEL PROCEEDINGS.

    (a) In General.--If the United States Trade Representative, in 
proceedings before a dispute settlement panel or the Appellate Body of 
the WTO, seeks--
            (1) to enforce United States rights under a multilateral 
        trade agreement, or
            (2) to defend a challenged action or determination of the 
        United States Government,
a private United States person that is supportive of the position of 
United States Government before the panel or Appellate Body and that 
has a direct economic interest in the resolution by the panel or the 
Appellate Body of the matters in dispute shall be permitted to 
participate in consultations and panel proceedings with respect to 
those matters. The Trade Representative shall issue regulations, 
consistent with subsections (b) and (c), ensuring full and effective 
participation by any such private person.
    (b) Access to Information.--The United States Trade Representative 
shall make available to persons described in subsection (a) all 
information presented to or otherwise obtained by the Trade 
Representative in connection with a WTO dispute settlement proceeding. 
The United States Trade Representative shall promulgate regulations 
implementing a protective order system to protect information 
designated as confidential by the party submitting the information.
    (c) Participation in Panel Process.--Upon request from a person 
described in subsection (a), the United States Trade Representative 
shall--
            (1) consult in advance with such person regarding the 
        content of written submissions from the United States to the 
        WTO panel concerned or to the other member countries involved;
            (2) include, where appropriate, such person or its 
        appropriate representative as an advisory member of the 
        delegation in sessions of the dispute settlement panel;
            (3) where such person or representative, as the case may 
        be, would bring special knowledge to the proceeding, allow such 
        person or representative to appear before the panel, directly 
        or through counsel, under the supervision of responsible United 
        States Government officials; and
            (4) in proceedings involving confidential information, 
        allow appearance of such person only through counsel.

SEC. 206. DEFINITIONS.

    In this title:
            (1) Appellate body.--The term ``Appellate Body'' means the 
        Appellate Body established under Article 17.1 of the Dispute 
        Settlement Understanding.
            (2) Adverse to the united states.--The term ``adverse to 
        the United States'', with respect to a report of a dispute 
        settlement panel or the Appellate Body, includes any report 
        which holds any law, regulation, or application thereof by an 
        agency of the Federal Government or of a State or local 
        government in the United States to be inconsistent with 
        obligations of the United States under a Uruguay Round 
        Agreement (or a nullification or impairment thereof), whether 
        or not there are other elements of the report which favor 
        arguments made by the United States.
            (3) Dispute settlement panel; panel.--The terms ``dispute 
        settlement panel'' and ``panel'' mean a panel established 
        pursuant to Article 6 of the Dispute Settlement Understanding.
            (4) Dispute settlement body.--The term ``Dispute Settlement 
        Body'' means the Dispute Settlement Body administering the 
        rules and procedures set forth in the Dispute Settlement 
        Understanding.
            (5) Dispute settlement understanding.--The term ``Dispute 
        Settlement Understanding'' means the Understanding on Rules and 
        Procedures Governing the Settlement of Disputes referred to in 
        section 101(d)(16) of the Uruguay Round Agreements Act.
            (6) Uruguay round agreement.--The term ``Uruguay Round 
        Agreement'' means any of the agreements described in section 
        101(d) of the Uruguay Round Agreements Act.
            (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.

 TITLE III--REFORM OF EXPORT-IMPORT BANK AND OVERSEAS PRIVATE INVESTOR 
                              CORPORATION

SEC. 301. RESTRICTIONS ON EXPORT-IMPORT BANK ASSISTANCE.

    Section 2 of the Export-Import Bank Act of 1945 (12 U.S.C. 635) is 
amended by adding at the end the following:
    ``(g) United States Content Requirements.--Notwithstanding any 
other provision of law, the Bank may not guarantee, insure, extend 
credit, or participate in the extension of credit in connection with 
any project or activity that involves the production of any commodity 
less than 80 percent of the value of which is attributable to content 
produced, manufactured, mined, or grown in the United States.''.

SEC. 302. RESTRICTIONS ON THE OVERSEAS PRIVATE INVESTMENT CORPORATION.

    Section 231A of the Foreign Assistance Act of 1961 (22 U.S.C. 
2191a) is amended--
            (1) by redesignating subsection (c) as subsection (d); and
            (2) by inserting after subsection (b) the following:
    ``(c) United States Content Requirements.--Notwithstanding any 
other provision of law, the Corporation may not insure, reinsure, 
guarantee, or finance a project if the project involves the production 
of any commodity less than 80 percent of the value of which is 
attributable to content produced, manufactured, mined, or grown in the 
United States.''.

                    TITLE IV--CURRENCY MANIPULATION

SEC. 401. NEGOTIATION PERIOD REGARDING CURRENCY MANIPULATION.

    Beginning on the date of the enactment of this Act, the President 
shall begin bilateral and multilateral negotiations for a 90-day period 
with those governments of countries that the President determines are 
engaged most egregiously in currency manipulation, for the purpose of 
seeking a prompt and orderly end to such currency manipulation and 
ensuring that the currencies of those countries are freely traded on 
international currency markets, or are established at a level that 
reflects a more appropriate and accurate market value. The President 
shall seek support in this process from international organizations and 
other countries and regions adversely affected by such currency 
manipulation.

SEC. 402. FINDINGS OF FACT AND REPORT REGARDING CURRENCY MANIPULATION.

    (a) In General.--During the 90-day negotiation period described in 
section 401, the International Trade Commission shall--
            (1) examine in detail how countries have engaged in 
        currency manipulation to increase their exports to the United 
        States and limit their imports of United States products;
            (2) quantify the extent of such currency manipulation;
            (3) examine in detail how such currency manipulation has 
        affected and will continue to affect United States 
        manufacturers and United States trade levels, both for imports 
        and exports;
            (4) review whether and to what extent reduction of currency 
        manipulation and the accumulation of dollar-denominated 
        currency reserves and public debt instruments might adversely 
        affect United States interest rates and public debt financing;
            (5) determine all available mechanisms for redress under 
        applicable international trade agreements, including the 
        Articles of Agreement of the International Monetary Fund, the 
        GATT 1994 (as defined in section 2 of the Uruguay Round 
        Agreements Act), and other Uruguay Round Agreements (as defined 
        in section 2 of that Act), and under United States trade laws; 
        and
            (6) examine other relevant matters in connection with the 
        issues described in paragraphs (1) through (5).
    (b) Report.--Not later than 90 days after the date of the enactment 
of this Act, the International Trade Commission shall provide a 
detailed report to the President, the United States Trade 
Representative, the Secretary of the Treasury, and the appropriate 
congressional committees on the findings made under subsection (a).

SEC. 403. PROCEEDINGS REGARDING CURRENCY MANIPULATION.

    (a) Proceeding.--At the end of the 90-day negotiation period 
provided for in section 401, if agreements are not reached by the 
President to promptly end the currency manipulation with respect to 
which the negotiations were conducted, the President shall institute 
proceedings under the relevant provisions of international law and 
United States trade laws, including section 301 of the Trade Act of 
1974, with respect to those countries that, based on the findings of 
the International Trade Commission under section 402, continue to 
engage in the most egregious currency manipulation. In such 
proceedings, the President shall, in addition to seeking a prompt end 
to currency manipulation, seek appropriate compensation for the damages 
incurred by manufacturers and other affected parties in the United 
States as a result of the currency manipulation.
    (b) Report to Congress If No Action Taken.-- If the President does 
not enter into negotiations with any country under section 401, or if 
the President does not institute proceedings under this section, the 
President shall, not later than 120 days after the date of the 
enactment of this Act, provide to the appropriate congressional 
committees a detailed explanation of why he has not done so.

SEC. 404. ADDITIONAL REPORTS AND RECOMMENDATIONS.

    (a) National Security.--Not later than 90 days after the date of 
the enactment of this Act, the Secretary of Defense shall provide a 
detailed report to the appropriate congressional committees evaluating 
the effects on the national security of the United States of countries 
engaging in significant currency manipulation, and the effect of such 
currency manipulation on critical manufacturing sectors such as the 
semiconductor industry.
    (b) Other Unfair Trade Practices.--Not later than 90 days after the 
date of the enactment of this Act, the United States Trade 
Representative and the International Trade Commission shall evaluate 
and report in detail to the appropriate congressional committees on 
other trade practices and trade barriers by major East Asian trading 
countries that may violate international trade agreements, including 
the practice of maintaining a value-added or other tax regime that 
effectively discriminates against imports by underpricing domestically 
produced goods.
    (c) Trade Enforcement.--Not later than 90 days after the date of 
the enactment of this Act, the United States Trade Representative and 
the International Trade Commission shall report in detail to the 
appropriate congressional committees on steps that could be taken to 
significantly improve trade enforcement efforts against unfair trade 
practices by competitor trading countries, including making 
recommendations for additional support for trade enforcement efforts.
    (d) Trade Promotion.--Not later than 90 days after the date of the 
enactment of this Act, the Secretary of State, the Secretary of 
Commerce, and the United States Trade Representative shall report in 
detail to the appropriate congressional committees on steps that could 
be taken to significantly improve trade promotion for United States 
goods and services, including recommendations on additional support to 
improve such trade promotion.

SEC. 405. CURRENCY MANIPULATION DEFINED.

    In this title, the term ``currency manipulation'' means--
            (1) large-scale manipulation of exchange rates by a country 
        in order to gain an unfair competitive advantage as stated in 
        Article IV of the Articles of Agreement of the International 
        Monetary Fund and related provisions;
            (2) sustained, large-scale currency intervention by a 
        country in one direction, through mandatory foreign exchange 
        sales at the central bank of a country at a fixed exchange 
        rate; or
            (3) other mechanisms used by a country to maintain a 
        currency at a fixed exchange rate relative to the currency of 
        another country.

               TITLE V--INTERNAL REVENUE CODE AMENDMENTS

SEC. 501. DISINCENTIVIZATION OF CORPORATE EXPATRIATION TO AVOID UNITED 
              STATES INCOME TAX.

    (a) In General.--Paragraph 4 of section 7701(a) of the Internal 
Revenue Code of 1986 (defining domestic) is amended to read as follows:
            ``(4) Domestic.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), the term `domestic' when applied to a 
                corporation or partnership means created or organized 
                in the United States or under the law of the United 
                States or of any State unless, in the case of a 
                partnership, the Secretary provides otherwise by 
                regulations.
                    ``(B) Certain corporations treated as domestic.--
                            ``(i) In general.--The acquiring 
                        corporation in a corporate expatriation 
                        transaction shall be treated as a domestic 
                        corporation.
                            ``(ii) Corporate expatriation 
                        transaction.--For purposes of this 
                        subparagraph, the term `corporate expatriation 
                        transaction' means any transaction if--
                                    ``(I) a nominally foreign 
                                corporation (referred to in this 
                                subparagraph as the `acquiring 
                                corporation') acquires, as a result of 
                                such transaction, directly or 
                                indirectly substantially all of the 
                                properties held directly or indirectly 
                                by a domestic corporation, and
                                    ``(II) immediately after the 
                                transaction, more than 80 percent of 
                                the stock (by vote or value) of the 
                                acquiring corporation is held by former 
                                shareholders of the domestic 
                                corporation by reason of holding stock 
                                in the domestic corporation.
                            ``(iii) Lower stock ownership requirement 
                        in certain cases.--Subclause (II) of clause 
                        (ii) shall be applied by substituting `50 
                        percent' for `80 percent' with respect to any 
                        nominally foreign corporation if--
                                    ``(I) such corporation does not 
                                have substantial business activities 
                                (when compared to the total business 
                                activities of the expanded affiliated 
                                group) in the foreign country in which 
                                or under the law of which the 
                                corporation is created or organized, 
                                and
                                    ``(II) the stock of the corporation 
                                is publicly traded and the principal 
                                market for the public trading of such 
                                stock is in the United States.
                            ``(iv) Partnership transactions.--The term 
                        `corporate expatriation transaction' includes 
                        any transaction if--
                                    ``(I) a nominally foreign 
                                corporation (referred to in this 
                                subparagraph as the `acquiring 
                                corporation') acquires, as a result of 
                                such transaction, directly or 
                                indirectly properties constituting a 
                                trade or business of a domestic 
                                partnership,
                                    ``(II) immediately after the 
                                transaction, more than 80 percent of 
                                the stock (by vote or value) of the 
                                acquiring corporation is held by former 
                                partners of the domestic partnership or 
                                related foreign partnerships 
                                (determined without regard to stock of 
                                the acquiring corporation which is sold 
                                in a public offering related to the 
                                transaction), and
                                    ``(III) the acquiring corporation 
                                meets the requirements of subclauses 
                                (I) and (II) of clause (iii).
                            ``(v) Special rules.--For purposes of this 
                        subparagraph--
                                    ``(I) a series of related 
                                transactions shall be treated as 1 
                                transaction, and
                                    ``(II) stock held by members of the 
                                expanded affiliated group which 
                                includes the acquiring corporation 
                                shall not be taken into account in 
                                determining ownership.
                            ``(vi) Other definitions.--For purposes of 
                        this subparagraph--
                                    ``(I) Nominally foreign 
                                corporation.--The term `nominally 
                                foreign corporation' means any 
                                corporation which would (but for this 
                                subparagraph) be treated as a foreign 
                                corporation.
                                    ``(II) Expanded affiliated group.--
                                The term `expanded affiliated group' 
                                means an affiliated group (as defined 
                                in section 1504(a) without regard to 
                                section 1504(b)).
                                    ``(III) Related foreign 
                                partnership.--A foreign partnership is 
                                related to a domestic partnership if 
                                they are under common control (within 
                                the meaning of section 482), or they 
                                shared the same trademark or 
                                tradename.''.
    (b) Effective Dates.--
            (1) In general.--The amendment made by this section shall 
        apply to corporate expatriation transactions completed after 
        December 31, 2003.
            (2) Special rule.--The amendment made by this section shall 
        also apply to corporate expatriation transactions completed on 
        or before December 31, 2003, but only with respect to taxable 
        years of the acquiring corporation beginning after such date.

SEC. 502. INCLUSION OF INCOME FROM U.S. IMPORTS IN SUBPART F INCOME.

    (a) In General.--Subsection (a) of section 954 of the Internal 
Revenue Code of 1986 (defining foreign base company income) is amended 
by striking ``and'' at the end of paragraph (4), by striking the period 
at the end of paragraph (5) and inserting ``, and'', and by adding at 
the end the following:
            ``(6) the foreign base company United States import income 
        for the taxable year (determined under subsection (j) and 
        reduced as provided in subsection (b)(5)).''.
    (b) Section 954 of such Code (defining foreign base company income) 
is amended by adding at the end the following:
    ``(j) Foreign Base Company United States Import Income.--For 
purposes of subsection (a)(6)--
            ``(1) In general.--The term `foreign base company United 
        States import income' means gross income derived from the sale 
        of goods manufactured, produced, grown, or extracted outside 
        the United States and imported into the United States.
            ``(2) Not treated as another kind of base company income.--
        Income of a corporation which is foreign base company United 
        States import income shall not be considered foreign base 
        company income of such corporation under paragraph (2), (3), 
        (4), or (5) of subsection (a).''.
    (c) Effective Date.--The amendments made by this section apply to 
taxable years of controlled foreign corporations beginning after the 
date of enactment of this Act and to taxable years of United States 
shareholders in which or with which such taxable years of controlled 
foreign corporations end.

SEC. 503. DENIAL OF TREATY BENEFITS FOR CERTAIN DEDUCTIBLE PAYMENTS.

    (a) In General.--Section 894 of the Internal Revenue Code of 1986 
(relating to income affected by treaty) is amended by adding at the end 
the following new subsection:
    ``(d) Denial of Treaty Benefits for Certain Deductible Payments.--
            ``(1) In general.--A foreign entity shall not be entitled 
        under any income tax treaty of the United States with a foreign 
        country to any reduced rate of any withholding tax imposed by 
        this title on any deductible foreign payment unless such entity 
        is predominantly owned by individuals who are residents of such 
        foreign country.
            ``(2) Deductible foreign payment.--For purposes of 
        paragraph (1), the term `deductible foreign payment' means any 
        payment--
                    ``(A) which is made by a domestic entity directly 
                or indirectly to a related person which is a foreign 
                entity, and
                    ``(B) which is allowable as a deduction under this 
                chapter.
            ``(3) Domestic and foreign entities; related person.--For 
        purposes of this subsection--
                    ``(A) Domestic entity.--The term `domestic entity' 
                means any domestic corporation or domestic partnership.
                    ``(B) Foreign entity.--The term `foreign entity' 
                means any foreign corporation or foreign partnership.
                    ``(C) Related person.--The term `related person' 
                has the meaning given such term by section 954(d)(3) 
                (determined by substituting `domestic entity' for 
                `controlled foreign corporation' each place it 
                appears).
            ``(4) Predominant ownership.--For purposes of this 
        subsection--
                    ``(A) In general.--An entity is predominantly owned 
                by individuals who are residents of a foreign country 
                if--
                            ``(i) in the case of a corporation, more 
                        than 50 percent (by value) of the stock of such 
                        corporation is owned (within the meaning of 
                        section 883(c)(4)) by individuals who are 
                        residents of such foreign country, or
                            ``(ii) in the case of a partnership, more 
                        than 50 percent (by value) of the beneficial 
                        interests in such partnership are so owned.
                    ``(B) Publicly traded corporations.--A foreign 
                corporation also shall be treated as predominantly 
                owned by individuals who are residents of a foreign 
                country if--
                            ``(i)(I) the stock of such corporation is 
                        primarily and regularly traded on an 
                        established securities market in such foreign 
                        country, and
                            ``(II) such corporation has activities 
                        within such foreign country which are 
                        substantial in relation to the total activities 
                        of such corporation and its related persons, or
                            ``(ii) such corporation is wholly owned 
                        (directly or indirectly) by another foreign 
                        corporation which is described in clause (i).
            ``(5) Conduit payments.--Under regulations prescribed by 
        the Secretary, paragraph (1) shall not apply to a payment 
        received by a foreign entity referred to in paragraph (1) if--
                    ``(A) within a reasonable period after such entity 
                receives such payment, such entity makes a comparable 
                payment directly or indirectly to another related 
                person,
                    ``(B) such related person is a resident of a 
                foreign country with which the United States has an 
                income tax treaty,
                    ``(C) such related person is predominantly owned by 
                individuals who are residents of such country, and
                    ``(D) the withholding tax rate reduction under such 
                treaty is not less than the withholding tax rate 
                reduction applicable (without regard to this paragraph) 
                to the payment received by such foreign entity.''.
    (b) Effective Date.--The amendment made by this section shall take 
effect on the date of the enactment of this Act.

SEC. 504. REPEAL OF EXCLUSION FOR EXTRATERRITORIAL INCOME.

    (a) In General.--Section 114 of the Internal Revenue Code of 1986 
is hereby repealed.
    (b) Conforming Amendments.--
            (1) Subpart E of part III of subchapter N of chapter 1 of 
        such Code (relating to qualifying foreign trade income) is 
        hereby repealed.
            (2) The table of subparts for such part III is amended by 
        striking the item relating to subpart E.
            (3) The table of sections for part III of subchapter B of 
        chapter 1 of such Code is amended by striking the item relating 
        to section 114.
    (c) Effective Date.--
            (1) In general.--The amendments made by this section shall 
        apply to transactions occurring after the date of the enactment 
        of this Act.
            (2) Binding contracts.--The amendments made by this section 
        shall not apply to any transaction in the ordinary course of a 
        trade or business which occurs pursuant to a binding contract--
                    (A) which is between the taxpayer and a person who 
                is not a related person (as defined in section 
                943(b)(3) of such Code, as in effect on the day before 
                the date of the enactment of this Act), and
                    (B) which is in effect on April 11, 2003, and at 
                all times thereafter.
        For purposes of this paragraph, a binding contract shall 
        include a purchase option, renewal option, or replacement 
        option which is included in such contract.
    (d) Revocation of Section 943(e) Elections.--
            (1) In general.--In the case of a corporation that elected 
        to be treated as a domestic corporation under section 943(e) of 
        the Internal Revenue Code of 1986 (as in effect on the day 
        before the date of the enactment of this Act)--
                    (A) the corporation may revoke such election, 
                effective as of the date of the enactment of this Act, 
                and
                    (B) if the corporation does revoke such election--
                            (i) such corporation shall be treated as a 
                        domestic corporation transferring (as of the 
                        date of the enactment of this Act) all of its 
                        property to a foreign corporation in connection 
                        with an exchange described in section 354 of 
                        the Internal Revenue Code of 1986, and
                            (ii) no gain or loss shall be recognized on 
                        such transfer.
            (2) Exception.--Subparagraph (B)(ii) of paragraph (1) shall 
        not apply to gain on any asset held by the revoking corporation 
        if--
                    (A) the basis of such asset is determined in whole 
                or in part by reference to the basis of such asset in 
                the hands of the person from whom the revoking 
                corporation acquired such asset,
                    (B) the asset was acquired by transfer (not as a 
                result of the election under section 943(e) of such 
                Code) occurring on or after the 1st day on which its 
                election under section 943(e) of such Code was 
                effective, and
                    (C) a principal purpose of the acquisition was the 
                reduction or avoidance of tax.
    (e) General Transition.--
            (1) In general.--In the case of a taxable year ending after 
        the date of the enactment of this Act and beginning before 
        January 1, 2009, for purposes of chapter 1 of such Code, each 
        current FSC/ETI beneficiary shall be allowed a deduction equal 
        to the transition amount determined under this subsection with 
        respect to such beneficiary for such year.
            (2) Current fsc/eti beneficiary.--The term ``current FSC/
        ETI beneficiary'' means any corporation which entered into one 
        or more transactions during its taxable year beginning in 
        calendar year 2001 with respect to which FSC/ETI benefits were 
        allowable.
            (3) Transition amount.--For purposes of this subsection--
                    (A) In general.--The transition amount applicable 
                to any current FSC/ETI beneficiary for any taxable year 
                is the phaseout percentage of the adjusted base period 
                amount.
                    (B) Phaseout percentage.--
                            (i) In general.--In the case of a taxpayer 
                        using the calendar year as its taxable year, 
                        the phaseout percentage shall be determined 
                        under the following table:

                                                           The phaseout
  Years:                                                 percentage is:
        2004 and 2005..........................................     100
        2006...................................................      75
        2007...................................................      75
        2008...................................................      50
        2009 and thereafter....................................      0.
                            (ii) Special rule for 2003.--The phaseout 
                        percentage for 2003 shall be the amount that 
                        bears the same ratio to 100 percent as the 
                        number of days after the date of the enactment 
                        of this Act bears to 365.
                            (iii) Special rule for fiscal year 
                        taxpayers.--In the case of a taxpayer not using 
                        the calendar year as its taxable year, the 
                        phaseout percentage is the weighted average of 
                        the phaseout percentages determined under the 
                        preceding provisions of this paragraph with 
                        respect to calendar years any portion of which 
                        is included in the taxpayer's taxable year. The 
                        weighted average shall be determined on the 
                        basis of the respective portions of the taxable 
                        year in each calendar year.
            (4) Adjusted base period amount.--For purposes of this 
        subsection--
                    (A) In general.--In the case of a taxpayer using 
                the calendar year as its taxable year, the adjusted 
                base period amount for any taxable year is the base 
                period amount multiplied by the applicable percentage, 
                as determined in the following table:

                                                         The applicable
  Years:                                                 percentage is:
        2003...................................................     100
        2004...................................................     100
        2005...................................................     105
        2006...................................................     110
        2007...................................................     115
        2008...................................................     120
        2009 and thereafter....................................      0.
                    (B) Base period amount.--The base period amount is 
                the aggregate FSC/ETI benefits for the taxpayer's 
                taxable year beginning in calendar year 2001.
                    (C) Special rules for fiscal year taxpayers, etc.--
                Rules similar to rules of clauses (ii) and (iii) of 
                paragraph (3)(B) shall apply for purposes of this 
                paragraph.
            (5) FSC/ETI benefit.--For purposes of this subsection, the 
        term ``FSC/ETI benefit'' means--
                    (A) amounts excludable from gross income under 
                section 114 of such Code, and
                    (B) the exempt foreign trade income of related 
                foreign sales corporations from property acquired from 
                the taxpayer (determined without regard to section 
                923(a)(5) of such Code (relating to special rule for 
                military property), as in effect on the day before the 
                date of the enactment of the FSC Repeal and 
                Extraterritorial Income Exclusion Act of 2000).
        In determining the FSC/ETI benefit there shall be excluded any 
        amount attributable to a transaction with respect to which the 
        taxpayer is the lessor unless the leased property was 
        manufactured or produced in whole or in part by the taxpayer.
            (6) Special rule for farm cooperatives.--Under regulations 
        prescribed by the Secretary, determinations under this 
        subsection with respect to an organization described in section 
        943(g)(1) of such Code, as in effect on the day before the date 
        of the enactment of this Act, shall be made at the cooperative 
        level and the purposes of this subsection shall be carried out 
        by excluding amounts from the gross income of its patrons.
            (7) Certain rules to apply.--Rules similar to the rules of 
        section 41(f) of such Code shall apply for purposes of this 
        subsection.
            (8) Coordination with binding contract rule.--The deduction 
        determined under paragraph (1) for any taxable year shall be 
        reduced by the phaseout percentage of any FSC/ETI benefit 
        realized for the taxable year by reason of subsection (c)(2). 
        The preceding sentence shall not apply to any FSC/ETI benefit 
        attributable to a transaction described in the last sentence of 
        paragraph (5).
            (9) Special rule for taxable year which includes date of 
        enactment.--In the case of a taxable year which includes the 
        date of the enactment of this Act, the deduction allowed under 
        this subsection to any current FSC/ETI beneficiary shall in no 
        event exceed--
                    (A) 100 percent of such beneficiary's adjusted base 
                period amount for calendar year 2003, reduced by
                    (B) the aggregate FSC/ETI benefits of such 
                beneficiary with respect to transactions occurring 
                during the portion of the taxable year ending on the 
                date of the enactment of this Act.

SEC. 505. DEDUCTION RELATING TO INCOME ATTRIBUTABLE TO UNITED STATES 
              PRODUCTION ACTIVITIES.

    (a) In General.--Part VIII of subchapter B of chapter 1 of the 
Internal Revenue Code of 1986 (relating to special deductions for 
corporations) is amended by adding at the end the following new 
section:

``SEC. 250. INCOME ATTRIBUTABLE TO DOMESTIC PRODUCTION ACTIVITIES.

    ``(a) In General.--In the case of a corporation, there shall be 
allowed as a deduction an amount equal to 10 percent of the qualified 
production activities income of the corporation for the taxable year.
    ``(b) Phase In.--In the case of taxable years beginning in 2006, 
2007, 2008 or 2009, subsection (a) shall be applied by substituting for 
the percentage contained therein the transition percentage determined 
under the following table:

``Taxable years                                          The transition
  beginning in:                                          percentage is:
        2006...................................................       1
        2007...................................................       2
        2008...................................................       4
        2009...................................................      9.
    ``(c) Qualified Production Activities Income.--For purposes of this 
section, the term `qualified production activities income' means the 
product of--
            ``(1) the portion of the modified taxable income of the 
        taxpayer which is attributable to domestic production 
        activities, and
            ``(2) the domestic/foreign fraction.
    ``(d) Determination of Income Attributable to Domestic Production 
Activities.--For purposes of this section--
            ``(1) In general.--The portion of the modified taxable 
        income which is attributable to domestic production activities 
        is so much of the modified taxable income for the taxable year 
        as does not exceed--
                    ``(A) the taxpayer's domestic production gross 
                receipts for such taxable year, reduced by
                    ``(B) the sum of--
                            ``(i) the costs of goods sold that are 
                        allocable to such receipts,
                            ``(ii) other deductions, expenses, or 
                        losses directly allocable to such receipts, and
                            ``(iii) a ratable portion of other 
                        deductions, expenses, and losses that are not 
                        directly allocable to such receipts or another 
                        class of income.
            ``(2) Allocation method.--Except as provided in 
        regulations, allocations under clauses (ii) and (iii) of 
        paragraph (1)(B) shall be made under the principles used in 
        determining the portion of taxable income from sources within 
        and without the United States.
            ``(3) Special rule.--
                    ``(A) For purposes of determining costs under 
                clause (i) of paragraph (1)(B), any item or service 
                brought into the United States without a transfer price 
                meeting the requirements of section 482 shall be 
                treated as acquired by purchase, and its cost shall be 
                treated as not less than its value when it entered the 
                United States. A similar rule shall apply in 
                determining the adjusted basis of leased or rented 
                property where the lease or rental gives rise to 
                domestic production gross receipts.
                    ``(B) In the case of any property described in 
                subparagraph (A) that had been exported by the taxpayer 
                for further manufacture, the increase in cost (or 
                adjusted basis) under subparagraph (A) shall not exceed 
                the difference between the value of the property when 
                exported and the value of the property when brought 
                back into the United States after the further 
                manufacture.
            ``(4) Modified taxable income.--The term `modified taxable 
        income' means taxable income computed without regard to the 
        deduction allowable under this section.
    ``(e) Domestic Production Gross Receipts.--For purposes of this 
section--
            ``(1) In general.--The term `domestic production gross 
        receipts' means the gross receipts of the taxpayer which are 
        derived from--
                    ``(A) any sale, exchange, or other disposition of, 
                or
                    ``(B) any lease, rental or license of,
        qualifying production property which was manufactured, 
        produced, grown, or extracted in whole or in significant part 
        by the taxpayer within the United States.
            ``(2) Special rule.--The term `domestic production gross 
        receipts' includes gross receipts of the taxpayer from the 
        sale, exchange, or other disposition of replacement parts if--
                    ``(A) such parts are sold by the taxpayer as 
                replacement parts for qualified production property 
                produced or manufactured in whole or significant part 
                by the taxpayer in the United States, and
                    ``(B) the taxpayer (or a related party) owns the 
                designs for such parts.
            ``(3) Related party.--The term `related party' means any 
        corporation which is a member of the taxpayer's expanded 
        affiliated group.
    ``(f) Qualifying Production Property.--For purposes of this 
section--
            ``(1) In general.--Except as otherwise provided in this 
        paragraph, the term `qualifying production property' means--
                    ``(A) any tangible personal property,
                    ``(B) any computer software, and
                    ``(C) any films, tapes, records, or similar 
                reproductions.
            ``(2) Exclusions from qualifying production property.--The 
        term `qualifying production property' shall not include--
                    ``(A) consumable property that is sold, leased, or 
                licensed by the taxpayer as an integral part of the 
                provision of services,
                    ``(B) oil or gas (or any primary product thereof),
                    ``(C) electricity,
                    ``(D) water supplied by pipeline to the consumer,
                    ``(E) any unprocessed timber which is softwood,
                    ``(F) utility services, or
                    ``(G) any property (not described in paragraph 
                (1)(B)) which is a film, tape, recording, book, 
                magazine, newspaper, or similar property the market for 
                which is primarily topical or otherwise essentially 
                transitory in nature.
        For purposes of subparagraph (E), the term `unprocessed timber' 
        means any log, cant, or similar form of timber.
    ``(g) Domestic/Foreign Fraction.--For purposes of this section--
            ``(1) In general.--The term `domestic/foreign fraction' 
        means a fraction--
                    ``(A) the numerator of which is the value of the 
                domestic production of the taxpayer, and
                    ``(B) the denominator of which is the value of the 
                worldwide production of the taxpayer.
            ``(2) Value of domestic production.--The value of domestic 
        production is the excess of--
                    ``(A) the domestic production gross receipts, over
                    ``(B) the cost of purchased inputs allocable to 
                such receipts that are deductible under this chapter 
                for the taxable year.
            ``(3) Purchased inputs.--
                    ``(A) In general.--Purchased inputs are any of the 
                following items acquired by purchase:
                            ``(i) Services (other than services of 
                        employees) used in manufacture, production, 
                        growth, or extraction activities.
                            ``(ii) Items consumed in connection with 
                        such activities.
                            ``(iii) Items incorporated as part of the 
                        property being manufactured, produced, grown, 
                        or extracted.
                    ``(B) Special rule.--Rules similar to the rules of 
                subsection (d)(3) shall apply for purposes of this 
                subsection.
            ``(4) Value of worldwide production.--
                    ``(A) In general.--The value of worldwide 
                production shall be determined under the principles of 
                paragraph (2), except that--
                            ``(i) worldwide production gross receipts 
                        shall be taken into account, and
                            ``(ii) paragraph (3)(B) shall not apply.
                    ``(B) Worldwide production gross receipts.--The 
                worldwide production gross receipts is the amount that 
                would be determined under subsection (e) if such 
                subsection were applied without any reference to the 
                United States.
            ``(5) Special rule for affiliated groups.--
                    ``(A) In general.--In the case of a taxpayer that 
                is a member of an expanded affiliated group, the 
                domestic/foreign fraction shall be the amount 
                determined under the preceding provisions of this 
                subsection by treating all members of such group as a 
                single corporation.
                    ``(B) Expanded affiliated group.--The term 
                `expanded affiliated group' means an affiliated group 
                as defined in section 1504(a), determined--
                            ``(i) by substituting `50 percent' for `80 
                        percent' each place it appears, and
                            ``(ii) without regard to paragraphs (2), 
                        (3), and (4) of section 1504(b).
    ``(h) Definitions and Special Rules.--
            ``(1) United states.--For purposes of this section, the 
        term `United States' includes the Commonwealth of Puerto Rico 
        and any other possession of the United States.
            ``(2) Special rule for partnerships.--For purposes of this 
        section, a corporation's distributive share of any partnership 
        item shall be taken into account as if directly realized by the 
        corporation.
            ``(3) Coordination with minimum tax.--The deduction under 
        this section shall be allowed for purposes of the tax imposed 
        by section 55; except that for purposes of section 55, 
        alternative minimum taxable income shall be taken into account 
        in determining the deduction under this section.
            ``(4) Ordering rule.--The amount of any other deduction 
        allowable under this chapter shall be determined as if this 
        section had not been enacted.
            ``(5) Coordination with transition rules.--For purposes of 
        this section--
                    ``(A) domestic production gross receipts shall not 
                include gross receipts from any transaction if the 
                binding contract transition relief of section 2(c)(2) 
                of the Job Protection Act of 2003 applies to such 
                transaction, and
                    ``(B) any deduction allowed under section 2(e) of 
                such Act shall be disregarded in determining the 
                portion of the taxable income which is attributable to 
                domestic production gross receipts.''.
    (b) Clerical Amendment.--The table of sections for part VIII of 
subchapter B of chapter 1 of such Code is amended by adding at the end 
the following new item:

``250. Income attributable to domestic production activities.''.
    (c) Effective Date.--
            (1) In general.--The amendments made by this section shall 
        apply to taxable years beginning after 2005.
            (2) Application of section 15.--Section 15 of the Internal 
        revenue Code of 1986 shall apply to the amendments made to this 
        section as if they were changes in a rate of tax.

                   TITLE VI--BUY AMERICAN PROVISIONS

SEC. 601. REQUIREMENTS FOR WAIVERS.

    (a) In General.--Section 2 of the Buy American Act (41 U.S.C. 10a) 
is amended--
            (1) by striking ``Notwithstanding'' and inserting the 
        following:
    ``(a) In General.--Notwithstanding''; and
            (2) by adding at the end the following:
    ``(b) Special Rules.--The following rules shall apply in carrying 
out the provisions of subsection (a):
            ``(1) Public interest waiver.--A determination that it is 
        not in the public interest to enter into a contract in 
        accordance with this Act may not be made after a notice of 
        solicitation of offers for the contract is published in 
        accordance with section 18 of the Office of Federal Procurement 
        Policy Act (41 U.S.C. 416) and section 8(e) of the Small 
        Business Act (15 U.S.C. 637(e)).
            ``(2) Domestic bidder.--A Federal agency entering into a 
        contract shall give preference to a company submitting an offer 
        on the contract that manufactures in the United States the 
        article, material, or supply for which the offer is solicited, 
        if--
                    ``(A) that company's offer is substantially the 
                same as an offer made by a company that does not 
                manufacture the article, material, or supply in the 
                United States; or
                    ``(B) that company is the only company that 
                manufactures in the United States the article, 
                material, or supply for which the offer is solicited.
            ``(3) Use outside the united states.--
                    ``(A) In general.--Subsection (a) shall apply 
                without regard to whether the articles, materials, or 
                supplies to be acquired are for use outside the United 
                States if the articles, materials, or supplies are not 
                needed on an urgent basis or if they are acquired on a 
                regular basis.
                    ``(B) Cost analysis.--In any case where the 
                articles, materials, or supplies are to be acquired for 
                use outside the United States and are not needed on an 
                urgent basis, before entering into a contract an 
                analysis shall be made of the difference in the cost 
                for acquiring the articles, materials, or supplies from 
                a company manufacturing the articles, materials, or 
                supplies in the United States (including the cost of 
                shipping) and the cost for acquiring the articles, 
                materials, or supplies from a company manufacturing the 
                articles, materials, or supplies outside the United 
                States (including the cost of shipping).
            ``(4) Domestic availability.--The head of a Federal agency 
        may not make a determination under subsection (a) that an 
        article, material, or supply is not mined, produced, or 
        manufactured, as the case may be, in the United States in 
        sufficient and reasonably available commercial quantities and 
        of satisfactory quality, unless the head of the agency has 
        conducted a study and, on the basis of such study, determined 
        that--
                    ``(A) domestic production cannot be initiated to 
                meet the procurement needs; and
                    ``(B) a comparable article, material, or supply is 
                not available from a company in the United States.
    ``(c) Reports.--
            ``(1) In general.--Not later than 60 days after the end of 
        each fiscal year, the head of each Federal agency shall submit 
        to Congress a report on the amount of the acquisitions made by 
        the agency from entities that manufacture the articles, 
        materials, or supplies outside the United States in that fiscal 
        year.
            ``(2) Content of report.--The report required by paragraph 
        (1) shall separately indicate the following information:
                    ``(A) The dollar value of any articles, materials, 
                or supplies for which this Act was waived.
                    ``(B) An itemized list of all waivers granted with 
                respect to such articles, materials, or supplies under 
                this Act.
                    ``(C) A list of all articles, materials, and 
                supplies acquired, their source, and the amount of the 
                acquisitions.
            ``(3) Public availability.--The head of each Federal agency 
        submitting a report under paragraph (1) shall make the report 
        publicly available by posting on an Internet website.''.
    (b) Definitions.--Section 1 of the Buy American Act (41 U.S.C. 10c) 
is amended--
            (1) by striking subsection (c) and inserting the following:
    ``(c) Federal Agency.--The term `Federal agency' means any 
executive agency (as defined in section 4(1) of the Federal Procurement 
Policy Act (41 U.S.C. 403(1))) or any establishment in the legislative 
or judicial branch of the Government (except the Senate, the House of 
Representatives, and the Architect of the Capitol and activities under 
the Architect's direction).
    ``(d) Substantially All.--Articles, materials, or supplies shall be 
treated as made substantially all from articles, materials, or supplies 
mined, produced, or manufactured, as the case may be, in the United 
States, if the cost of the domestic components of such articles, 
materials, or supplies exceeds 75 percent.''.
    (c) Conforming Amendments.--
            (1) Section 2 of the Buy American Act (41 U.S.C. 10a) is 
        amended by striking ``department or independent establishment'' 
        and inserting ``Federal agency''.
            (2) Section 3 of such Act (41 U.S.C. 10b) is amended--
                    (A) by striking ``department or independent 
                establishment'' in subsection (a), and inserting 
                ``Federal agency''; and
                    (B) by striking ``department, bureau, agency, or 
                independent establishment'' in subsection (b) and 
                inserting ``Federal agency''.
            (3) Section 633 of the National Military Establishment 
        Appropriations Act, 1950 (41 U.S.C. 10d) is amended by striking 
        ``department or independent establishment'' and inserting 
        ``Federal agency''.

SEC. 602. GAO REPORT AND RECOMMENDATIONS.

    (a) Scope of Waivers.--Not later than 6 months after the date of 
enactment of this title, the Comptroller General of the United States 
shall report to Congress recommendations for determining, for purposes 
of applying the waiver provision of section 2(a) of the Buy American 
Act--
            (1) unreasonable cost; and
            (2) inconsistent with the public interest.
    (b) Waiver Procedures.--The report described in subsection (a) 
shall also include recommendations for establishing procedures for 
applying the waiver provisions of the Buy American Act that can be 
consistently applied.

SEC. 603. DUAL USE TECHNOLOGIES.

    The head of a Federal agency (as defined in section 1(c) of the Buy 
American Act (as amended by section 601) may not enter into a contract, 
nor permit a subcontract under a contract of the Federal agency, with a 
foreign entity that involves giving the foreign entity plans, manuals, 
or other information that would facilitate the manufacture of a dual-
use item on the Commerce Control List unless approval for providing 
such plans, manuals, or information has been obtained in accordance 
with the provisions of the Export Administration Act of 1979 (50 U.S.C. 
App. 2401 et seq.) and the Export Administration Regulations (15 C.F.R. 
part 730 et seq.)

         TITLE VII--ESTABLISHMENT OF CONGRESSIONAL TRADE OFFICE

SECTION 701. FINDINGS.

    Congress makes the following findings:
            (1) Congress has responsibility under the Constitution for 
        international commerce.
            (2) Congressional oversight of trade policy has often been 
        hampered by a lack of resources.
            (3) The United States has entered into numerous trade 
        agreements with foreign trading partners, including bilateral, 
        regional, and multilateral agreements.
            (4) The purposes of the trade agreements are--
                    (A) to achieve a more open world trading system 
                which provides mutually advantageous market 
                opportunities for trade between the United States and 
                foreign countries;
                    (B) to facilitate the opening of foreign country 
                markets to exports of the United States and other 
                countries by eliminating trade barriers and increasing 
                the access of United States industry and the industry 
                of other countries to such markets; and
                    (C) to reduce diversion of third country exports to 
                the United States because of restricted market access 
                in foreign countries.
            (5) Foreign country performance under certain agreements 
        has been less than contemplated, and in some cases rises to the 
        level of noncompliance.
            (6) The credibility of, and support for, the United States 
        Government's trade policy is, to a significant extent, a 
        function of the belief that trade agreements made are trade 
        agreements enforced.
            (7) The accession of the People's Republic of China to the 
        World Trade Organization will create unprecedented challenges 
        and it is important to the world trading system that China 
        comply with the numerous and significant commitments China 
        makes as part of the accession process. Congress must play a 
        key role in ensuring full and continuous monitoring of the 
        People's Republic of China's compliance with its commitments.

SEC. 702. ESTABLISHMENT OF OFFICE.

    (a) In General.--There is established an office in Congress to be 
known as the Congressional Trade Office (in this title referred to as 
the ``Office'').
    (b) Purposes.--The purposes of the Office are as follows:
            (1) To reassert the constitutional responsibility of 
        Congress with respect to international trade.
            (2) To provide Congress, through the Committee on Finance 
        of the Senate and the Committee on Ways and Means of the House 
        of Representatives, with additional independent, nonpartisan, 
        neutral trade expertise.
            (3) To assist Congress in providing more effective and 
        active oversight of trade policy.
            (4) To assist Congress in providing to the executive branch 
        more effective direction on trade policy.
            (5) To provide Congress with long-term, institutional 
        memory on trade issues.
            (6) To provide Congress with more analytical capability on 
        trade issues.
            (7) To advise relevant committees on the impact of trade 
        negotiations, including past, ongoing, and future negotiations, 
        with respect to the areas of jurisdiction of the respective 
        committees.
    (c) Functions.--The functions of the Office are as follows:
            (1) Assistance to congress.--To provide the Committee on 
        Finance of the Senate and the Committee on Ways and Means of 
        the House of Representative and any other appropriate committee 
        of Congress or joint committee of Congress information which 
        will assist the committees in the discharge of the matters 
        within their jurisdiction.
            (2) Monitor compliance.--To monitor compliance with major 
        bilateral, regional, and multilateral trade agreements by--
                    (A) consulting with the affected industries and 
                interested parties;
                    (B) analyzing the success of those agreements based 
                on commercial results;
                    (C) recommending actions, including legislative 
                action, necessary to ensure that foreign countries that 
                have made commitments through those agreements with the 
                United States fully abide by their commitments;
                    (D) annually assessing the extent to which those 
                agreements comply with environmental goals; and
                    (E) annually assessing the extent to which those 
                agreements comply with labor goals.
            (3) Analysis.--
                    (A) In general.--To perform the following analyses:
                            (i) Not later than 60 days after the date 
                        the National Trade Estimates report is 
                        delivered to Congress each year, analyze the 
                        major outstanding trade barriers based on cost 
                        to the United States economy.
                            (ii) Not later than 60 days after the date 
                        the Trade Policy Agenda is delivered to 
                        Congress each year, analyze the 
                        Administration's Agenda, including alternative 
                        goals, strategies, and tactics, as appropriate.
                            (iii) Analyze the trade accounts quarterly, 
                        including the global current account, global 
                        trade account, and key bilateral trade 
                        accounts.
                    (B) Analysis requested by committee.--To perform 
                one or more of the following analyses as directed by 
                the Committee on Finance of the Senate or the Committee 
                on Ways and Means of the House of Representatives:
                            (i) Analyze proposed trade legislation.
                            (ii) Analyze proposed trade agreements, 
                        including agreements that do not require 
                        implementing legislation.
                            (iii) Analyze the impact of the 
                        Administration's trade policy and actions, 
                        including assessing the Administration's 
                        decisions for not accepting unfair trade 
                        practices cases.
            (4) Dispute settlement deliberations.--To perform the 
        following functions with respect to dispute resolution:
                    (A) Participate as observers on the United States 
                delegation at dispute settlement panel meetings of the 
                World Trade Organization.
                    (B) Evaluate each World Trade Organization decision 
                with respect to which the United States is a 
                participant. In any case in which the United States 
                does not prevail, evaluate the decision and in any case 
                in which the United States does prevail, measure the 
                commercial results of that decision.
                    (C) Evaluate each dispute resolution proceeding 
                under the North American Free Trade Agreement. In any 
                case in which the United States does not prevail, 
                evaluate the decision and in any case in which the 
                United States does prevail, measure the commercial 
                results of that decision.
                    (D) Participate as observers in other dispute 
                settlement proceedings that the Chairman and Ranking 
                Member of the Committee on Finance and the Chairman and 
                Ranking Member of the Committee on Ways and Means deem 
                appropriate.
            (5) Participation in trade negotiations.--To participate as 
        observers in selected bilateral, regional, and multilateral 
        trade negotiations.
            (6) Other functions of the office.--
                    (A) To provide the Committee on Finance and the 
                Committee on Ways and Means with quarterly reports 
                regarding the activities of the Office.
                    (B) To be available for consultation with 
                congressional committees on trade-related legislation.
                    (C) To receive and review classified information 
                and participate in classified briefings in the same 
                manner as the staff of the Committee on Finance and the 
                Committee on Ways and Means.
                    (D) To consult nongovernmental experts and utilize 
                nongovernmental resources.
                    (E) To perform such other functions as the Chairman 
                and Ranking Member of the Committee on Finance and the 
                Chairman and Ranking Member of the Committee on Ways 
                and Means may request.
    (d) Director and Staff.--
            (1) Director.--
                    (A) In general.--The Office shall be headed by a 
                Director. The Director shall be appointed by the 
                Speaker of the House of Representatives and the 
                President pro tempore of the Senate after considering 
                the recommendations of the Chairman and Ranking Member 
                of the Committee on Finance of the Senate and the 
                Chairman and Ranking Member of the Committee on Ways 
                and Means of the House of Representatives. The Director 
                shall be chosen without regard to political affiliation 
                and solely on the basis of the Director's expertise and 
                fitness to perform the duties of the Director.
                    (B) Term.--The term of office of the Director shall 
                be 5 years and the Director may be reappointed for 
                subsequent terms.
                    (C) Vacancy.--Any individual appointed to fill a 
                vacancy prior to the expiration of a term shall serve 
                only for the unexpired portion of that term.
                    (D) Removal.--The Director may be removed by either 
                House by resolution.
                    (E) Compensation.--The Director shall receive 
                compensation at a per annum gross rate equal to the 
                rate of basic pay, as in effect from time to time, for 
                level III of the Executive Schedule under section 5314 
                of title 5, United States Code.
            (2) Staff.--
                    (A) In general.--The Director shall appoint and fix 
                the compensation of such personnel as may be necessary 
                to carry out the duties and functions of the Office. 
                All personnel shall be appointed without regard to 
                political affiliation and solely on the basis of their 
                fitness to perform their duties. The personnel of the 
                Office shall consist of individuals with expertise in 
                international trade, including expertise in economics, 
                trade law, various industrial sectors, and various 
                geographical regions.
                    (B) Benefits.--For purposes of pay (other than the 
                pay of the Director) and employment, benefits, rights, 
                and privileges, all personnel of the Office shall be 
                treated as if they were employees of the House of 
                Representatives.
            (3) Experts and consultants.--In carrying out the duties 
        and functions of the Office, the Director may procure the 
        temporary (not to exceed 1 year) or intermittent services of 
        experts or consultants or organizations thereof by contract as 
        independent contractors, or, in the case of individual experts 
        or consultants, by employment at rates of pay not in excess of 
        the daily equivalent of the highest rate of basic pay payable 
        under the General Schedule under section 5332 of title 5, 
        United States Code.
            (4) Relationship to executive branch.--The Director is 
        authorized to secure information, data, estimates, and 
        statistics directly from the various departments, agencies, and 
        establishments of the executive branch of Government and the 
        regulatory agencies and commissions of the Government. All such 
        departments, agencies, establishments, and regulatory agencies 
        and commissions shall furnish the Director any available 
        material which the Director determines to be necessary in the 
        performance of his or her duties and functions (other than 
        material the disclosure of which would be a violation of law). 
        The Director is also authorized, upon agreement with the head 
        of any such department, agency, establishment, or regulatory 
        agency or commission, to utilize its services and facilities 
        with or without reimbursement; and the head of each such 
        department, agency, establishment, or regulatory agency or 
        commission is authorized to provide the Office such services 
        and facilities.
            (5) Relationship to other agencies of congress.--In 
        carrying out the duties and functions of the Office, and for 
        the purpose of coordinating the operations of the Office with 
        those of other congressional agencies with a view to utilizing 
        most effectively the information, services, and capabilities of 
        all such agencies in carrying out the various responsibilities 
        assigned to each, the Director is authorized to obtain 
        information, data, estimates, and statistics developed by the 
        General Accounting Office, the Library of Congress, and other 
        offices of Congress, and (upon agreement with them) to utilize 
        their services and facilities with or without reimbursement. 
        The Comptroller General, the Librarian of Congress, and the 
        head of other offices of Congress are authorized to provide the 
        Office with the information, data estimates, statistics, 
        services, and facilities referred to in the preceding sentence.

SEC. 703. PUBLIC ACCESS TO DATA.

    (a) Right to Copy.--Except as provided in subsections (b) and (c), 
the Director shall make all information, data, estimates, and 
statistics obtained under this title available for public copying 
during normal business hours, subject to reasonable rules and 
regulations, and shall to the extent practicable, at the request of any 
person, furnish a copy of any such information, data, estimates, or 
statistics upon payment by such person of the cost of making and 
furnishing such copy.
    (b) Exceptions.--Subsection (a) of this section shall not apply to 
information, data, estimates, and statistics--
            (1) which are specifically exempted from disclosure by law; 
        or
            (2) which the Director determines will disclose--
                    (A) matters necessary to be kept secret in the 
                interests of national defense or the confidential 
                conduct of the foreign relations of the United States;
                    (B) information relating to trade secrets or 
                financial or commercial information pertaining 
                specifically to a given person if the information has 
                been obtained by the Government on a confidential 
                basis, other than through an application by such person 
                for a specific financial or other benefit, and is 
                required to be kept secret in order to prevent undue 
                injury to the competitive position of such person; or
                    (C) personnel or medical data or similar data the 
                disclosure of which would constitute a clearly 
                unwarranted invasion of personal privacy;
unless the portions containing such matters, information, or data have 
been excised.
    (c) Information Obtained for Committees and Members.--Subsection 
(a) of this section shall apply to any information, data, estimates, 
and statistics obtained at the request of any committee, joint 
committee, or Member unless such committee, joint committee, or Member 
of Congress has instructed the Director not to make such information, 
data, estimates, or statistics available for public copying.

SEC. 704. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated to the Office for each 
fiscal year such sums as may be necessary to enable it to carry out its 
duties and functions. Until sums are first appropriated pursuant to the 
preceding sentence, for a period not to exceed 12 months following the 
effective date of this title, the expenses of the Office shall be paid 
from the contingent fund of the Senate, in accordance with the 
provisions of the paragraph relating to contingent funds under the 
heading ``UNDER LEGISLATIVE'' in the Act of October 2, 1888 (25 Stat. 
546; 2 U.S.C. 68), and upon vouchers approved by the Director.
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