[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[S. 676 Introduced in Senate (IS)]







108th CONGRESS
  1st Session
                                 S. 676

To establish a WTO Dispute Settlement Review Commission, and for other 
                               purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             March 20, 2003

  Mr. Baucus (for himself, Mr. Craig, Mr. Bayh, and Mr. Rockefeller) 
introduced the following bill; which was read twice and referred to the 
                          Committee on Finance

_______________________________________________________________________

                                 A BILL


 
To establish a WTO Dispute Settlement Review Commission, 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; FINDINGS; PURPOSE.

    (a) Short Title.--This Act may be cited as the ``World Trade 
Organization Dispute Settlement Review Commission Act''.
    (b) Findings.--Congress finds the following:
            (1) The United States joined the World Trade Organization 
        (in this Act referred to as the ``WTO'') as an original member 
        with the goal of creating an improved global trading system and 
        providing expanded economic opportunities for United States 
        firms and workers, while preserving United States sovereignty.
            (2) The American people must receive assurances that United 
        States sovereignty will be protected, and United States 
        interests will be advanced, within the global trading system 
        which the WTO will oversee.
            (3) The WTO's dispute settlement rules are meant to enhance 
        the likelihood that governments will observe their WTO 
        obligations. These dispute settlement rules will help ensure 
        that the United States will reap the full benefits of its 
        participation in the WTO.
            (4) United States support for the WTO depends on obtaining 
        mutual trade benefits through the openness of foreign markets 
        and the maintenance of effective United States and WTO remedies 
        against unfair and otherwise harmful trade practices.
            (5) Congress passed the Uruguay Round Agreements Act based 
        on its understanding that effective trade remedies would not be 
        eroded. These remedies are essential to continue the process of 
        opening foreign markets to imports of goods and services and to 
        prevent harm to American industry and agriculture.
            (6) In particular, WTO dispute panels and the Appellate 
        Body should--
                    (A) operate with fairness and in an impartial 
                manner;
                    (B) not add to the obligations, or diminish the 
                rights, of WTO members under the Uruguay Round 
                Agreements; and
                    (C) observe the terms of reference and any 
                applicable WTO standard of review.
    (c) Purpose.--It is the purpose of this Act to provide for the 
establishment of the WTO Dispute Settlement Review Commission to 
achieve the objectives described in subsection (b)(6).

 SEC. 2. DEFINITIONS.

    In this Act:
            (1) Adverse finding.--The term ``adverse finding'' means--
                    (A) in a panel or Appellate Body proceeding 
                initiated against the United States, a finding by the 
                panel or the Appellate Body that, any law or regulation 
                of, or application thereof by, the United States, or 
                any State, is inconsistent with the obligations of the 
                United States under a Uruguay Round Agreement (or 
                nullifies or impairs benefits accruing to a WTO member 
                under such an Agreement); or
                    (B) in a panel or Appellate Body proceeding in 
                which the United States is a complaining party, any 
                finding by the panel or the Appellate Body that a 
                measure of the party complained against is not 
                inconsistent with that party's obligations under a 
                Uruguay Round Agreement (or does not nullify or impair 
                benefits accruing to the United States under such an 
                Agreement).
            (2) Affirmative report.--The term ``affirmative report'' 
        means a report described in section 234(b)(2) which contains 
        affirmative determinations made by the Commission under 
        paragraph (3) of section 4(a).
            (3) Appellate body.--The term ``Appellate Body'' means the 
        Appellate Body established by the Dispute Settlement Body 
        pursuant to Article 17.1 of the Dispute Settlement 
        Understanding.
            (4) Dispute settlement body.--The term ``Dispute Settlement 
        Body'' means the Dispute Settlement Body established pursuant 
to the Dispute Settlement Understanding.
            (5) Dispute settlement panel; panel.--The terms ``dispute 
        settlement panel'' and ``panel'' mean a panel established 
        pursuant to Article 6 of the Dispute Settlement Understanding.
            (6) 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.
            (7) Terms of reference.--The term ``terms of reference'' 
        has the meaning given such term in the Dispute Settlement 
        Understanding.
            (8) Trade representative.--The term ``Trade 
        Representative'' means the United States Trade Representative.
            (9) Uruguay round agreement.--The term ``Uruguay Round 
        Agreement'' means any of the Agreements described in section 
        101(d) of the Uruguay Round Agreements Act.
            (10) World trade organization; wto.--The terms ``World 
        Trade Organization'' and ``WTO'' mean the organization 
        established pursuant to the WTO Agreement.
            (11) WTO agreement.--The term ``WTO Agreement'' means the 
        Agreement Establishing the World Trade Organization entered 
        into on April 15, 1994.

 SEC. 3. ESTABLISHMENT OF COMMISSION.

    (a) Establishment.--There is established a commission to be known 
as the World Trade Organization Dispute Settlement Review Commission 
(in this Act referred to as the ``Commission'').
    (b) Membership.--
            (1) Composition.--The Commission shall be composed of 5 
        members, all of whom shall be retired judges of the Federal 
        judicial circuits, and who shall be appointed by the President, 
        after consultation with the Majority Leader and Minority Leader 
        of the House of Representatives, the Majority Leader and 
        Minority Leader of the Senate, the chairman and ranking member 
        of the Committee on Ways and Means of the House of 
        Representatives, and the chairman and ranking member of the 
        Committee on Finance of the Senate.
            (2) Date of appointment.--The appointments of the members 
        of the Commission shall be made not later than 90 days after 
        the date of enactment of this Act.
    (c) Period of Appointment; Vacancies.--
            (1) In general.--Members of the Commission first appointed 
        shall each be appointed for a term of 5 years.
            (2) Subsequent terms.--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.
            (3) 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.
    (d) Meetings.--
            (1) Initial meeting.--Not later than 30 days after the date 
        on which all members of the Commission have been appointed, the 
        Commission shall hold its first meeting.
            (2) Subsequent meetings.--The Commission shall meet 
        subsequently at the call of the chairperson.
    (e) Quorum.--A majority of the members of the Commission shall 
constitute a quorum, but a lesser number of members may hold hearings.
    (f) Chairperson and Vice Chairperson.--The Commission shall select 
a chairperson and vice chairperson from among its members.
    (g) Affirmative Determinations.--An affirmative vote by a majority 
of the members of the Commission shall be required for any affirmative 
determination by the Commission under section 4.

 SEC. 4. DUTIES OF THE COMMISSION.

    (a) Review of World Trade Organization Dispute Settlement 
Reports.--
            (1) In general.--The Commission shall review--
                    (A) all reports of dispute settlement panels or the 
                Apellate Body of the WTO in proceedings initiated by 
                other parties to the WTO that are adverse to the United 
                States and that are adopted by the Dispute Settlement 
                Body; and
                    (B) upon request of the Trade Representative, the 
                chairman or ranking member of the Committee on Ways and 
                Means of the House of Representatives, or the chairman 
                or ranking member of the Committee on Finance of the 
                Senate, any other report of a dispute settlement panel, 
                or the Appellate Body that is adopted by the Dispute 
                Settlement Body.
            (2) Scope of review.--In the case of a report described in 
        paragraph (1), the Commission shall conduct a complete review 
        and determine whether the panel or Appellate Body, as the case 
        may be--
                    (A) exceeded its authority or its terms of 
                reference;
                    (B) added to the obligations, or diminished the 
                rights of the United States under the Uruguay Round 
                Agreement that is the subject of the report;
                    (C) 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) 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.--Not later than 120 days after the date 
        that a report of a panel or Appellate Body described in 
        subsection (a) is adopted by the Dispute Settlement Body, the 
        Commission shall make a written determination with respect to 
        matters described in subsection (a) (2) and (3).
            (2) Reports.--The Commission shall report the determination 
        described in paragraph (1) to the Committee on Ways and Means 
        of the House of Representatives and the Committee on Finance of 
        the Senate.

 SEC. 5. POWERS OF THE COMMISSION.

    (a) Hearings.--The Commission may hold any hearings, sit and act at 
any time and place, take any testimony, and receive any evidence as the 
Commission considers advisable to carry out the purposes of this Act. 
The Commission shall provide reasonable notice of a hearing held 
pursuant to this subsection.
    (b) Information From Interested Parties and Federal Agencies.--
            (1) Notice of panel or appellate body report.--The Trade 
        Representative shall advise the Commission not 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 that 
        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 
        any information the Commission considers necessary to carry out 
        the provisions of this Act. Upon request of the chairperson of 
        the Commission, the head of that department or agency shall 
        furnish the requested information to the Commission.
            (3) Access to panel and appellate body documents.--
                    (A) In general.--The 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 
                submissions identified by the provider of the 
                information as proprietary information or information 
                treated as confidential by a foreign government.
                    (B) Public access.--Any document which the Trade 
                Representative submits to the Commission shall be 
                available to the public, except information which is 
                identified as proprietary or confidential.
            (4) Assistance from federal agencies; confidentiality.--
                    (A) Administrative assistance.--Any agency or 
                department of the United States that is designated by 
                the President shall provide administrative services, 
                funds, facilities, staff, or other support services to 
                the Commission to assist the Commission with the 
                performance of the Commission's functions.
                    (B) Confidentiality.--The Commission shall protect 
                from disclosure any document or information submitted 
                to it by a department or agency of the United States 
                which the agency or department requests be kept 
                confidential. The Commission shall not be considered to 
                be an agency for purposes of section 552 of title 5, 
                United States Code.
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