[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. 2317 Introduced in Senate (IS)]








109th CONGRESS
  2d Session
                                S. 2317

   To amend the Trade Act of 1974 to require the United States Trade 
  Representative to identify trade enforcement priorities and to take 
 action with respect to priority foreign country trade practices, and 
                          for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           February 16, 2006

 Mr. Baucus (for himself, Mr. Hatch, and Ms. Stabenow) introduced the 
 following bill; which was read twice and referred to the Committee on 
                                Finance

_______________________________________________________________________

                                 A BILL


 
   To amend the Trade Act of 1974 to require the United States Trade 
  Representative to identify trade enforcement priorities and to take 
 action with respect to priority foreign country trade practices, 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 ``Trade Competitiveness Act of 2006''.

SEC. 2. IDENTIFICATION OF TRADE ENFORCEMENT PRIORITIES.

    (a) In General.--Title III of the Trade Act of 1974 (19 U.S.C. 2411 
et seq.) is amended by adding at the end the following:

``SEC. 311. IDENTIFICATION OF TRADE ENFORCEMENT PRIORITIES.

    ``(a) Identification and Annual Report.--
            ``(1) In general.--Within 75 days after the submission of 
        the report required by section 181(b), the United States Trade 
        Representative shall annually--
                    ``(A) identify United States trade enforcement 
                priorities;
                    ``(B) identify enforcement actions that the Trade 
                Representative has taken during the previous year and 
                review the impact these enforcement actions have had in 
                addressing foreign trade barriers;
                    ``(C) identify priority foreign country trade 
                practices on which the Trade Representative will focus 
                its enforcement efforts; and
                    ``(D) submit to the Committee on Finance of the 
                Senate and the Committee on Ways and Means of the House 
                of Representatives and publish in the Federal Register 
                a report on the priorities, actions, and practices 
                identified in subparagraphs (A), (B), and (C).
            ``(2) Factors to consider.--In identifying priority foreign 
        country trade practices under paragraph (1), the Trade 
        Representative shall focus on those practices, the elimination 
        of which is likely to have the most significant potential to 
        increase United States economic growth, either directly or 
        through the establishment of a beneficial precedent. The Trade 
        Representative shall take into account all relevant factors, 
        including--
                    ``(A) the major barriers and trade distorting 
                practices described in the most recent available 
                National Trade Estimate Report required under section 
                181(b);
                    ``(B) the findings and practices described in the 
                most recent available report required under--
                            ``(i) section 182;
                            ``(ii) section 1377 of the Omnibus Trade 
                        and Competitiveness Act of 1988;
                            ``(iii) section 3005 of the Omnibus Trade 
                        and Competitiveness Act of 1988;
                            ``(iv) section 421 of the Act entitled `An 
                        Act to authorize extension of nondiscriminatory 
                        treatment (normal trade relations treatment) to 
                        the People's Republic of China, and to 
                        establish a framework for relations between the 
                        United States and the People's Republic of 
                        China' (22 U.S.C. 6951); and
                            ``(v) any other report prepared by the 
                        Trade Representative or any other agency 
                        relating to international trade and investment;
                    ``(C) the trade agreements to which a foreign 
                country is a party and its compliance with those 
                agreements;
                    ``(D) the medium- and long-term implications of 
                foreign government procurement plans; and
                    ``(E) the international competitive position and 
                export potential of United States products and 
                services.
            ``(3) Other items in report.--The Trade Representative may 
        include in the report a description of foreign country trade 
        practices that may in the future warrant identification as a 
        priority foreign country trade practice.
            ``(4) Priorities not identified.--If the Trade 
        Representative does not identify a priority foreign country 
        trade practice in the report required under paragraph (1), the 
        Trade Representative shall set out in detail in that report the 
        reasons for failing to do so.
    ``(b) Consultation.--
            ``(1) In general.--Not later than 45 days after the 
        submission of the report required by section 181(b), the Trade 
        Representative shall consult with the Committee on Finance of 
        the Senate and the Committee on Ways and Means of the House of 
        Representatives with respect to the priorities, actions, and 
        practices to be identified in the report under subsection (a).
            ``(2) Vote of committee.--If, as a result of the 
        consultations described in paragraph (1), either the Committee 
        on Finance of the Senate or the Committee on Ways and Means of 
        the House of Representatives requests identification of a 
        priority foreign country trade practice by majority vote of 
        either Committee, the Trade Representative shall include such 
        identification in its annual report.
            ``(3) Determination not to include priority foreign country 
        trade practices.--The Trade Representative may determine not to 
        include the priority foreign country trade practice requested 
        under paragraph (2) in its annual report only if the Trade 
        Representative finds that--
                    ``(A) such practice is already being addressed 
                under provisions of United States trade law, under the 
                Uruguay Round Agreements (as defined in section 2(7) of 
                the Uruguay Round Agreements Act (19 U.S.C. 3501(7))), 
                under any bilateral or regional trade agreement, or as 
                part of trade negotiations with that foreign country or 
                other countries, and progress is being made toward the 
                elimination of such practice; or
                    ``(B) identification of such practice as a priority 
                foreign country trade practice would be contrary to the 
                interests of United States trade policy.
            ``(4) Reasons for determination.--In the case of a 
        determination made pursuant to paragraph (3), the Trade 
        Representative shall set forth in detail the reasons for that 
        determination in the report required under subsection (a)(1).
    ``(c) Investigation and Resolution.--
            ``(1) In general.--Upon submission of the report required 
        by subsection (a), the Trade Representative shall, with respect 
        to any priority foreign country trade practice identified, seek 
        satisfactory resolution with the country concerned under the 
        auspices of the World Trade Organization, pursuant to a 
        bilateral or regional trade agreement to which the United 
        States is a party, or by any other means. A satisfactory 
        resolution may include elimination of the practice or, if not 
        feasible, providing for compensatory trade benefits.
            ``(2) Consultations; investigations.--Not later than 120 
        days after the transmission of the report required under 
        subsection (a), the Trade Representative shall, with respect to 
        any priority foreign country trade practice identified--
                    ``(A) initiate dispute settlement consultations in 
                the World Trade Organization;
                    ``(B) initiate dispute settlement consultations 
                under the applicable provisions of any bilateral or 
                regional trade agreement to which the United States is 
                a party;
                    ``(C) initiate an investigation under section 
                302(b)(1) of this Act;
                    ``(D) seek to negotiate an agreement that provides 
                for the elimination of the priority foreign country 
                trade practice or, if elimination of the practice is 
                not feasible, an agreement that provides for 
                compensatory trade benefits; or
                    ``(E) take any additional action necessary to 
                eliminate the priority foreign country trade practice.
            ``(3) Report.--On the day the Trade Representative takes 
        action under subparagraph (E) of paragraph (2), the Trade 
        Representative shall transmit to Congress a report describing 
        the action and the reasons for taking the actions. If the Trade 
        Representative takes action under subparagraph (E) of paragraph 
        (2), the Trade Representative shall state in detail the reasons 
        the Trade Representative did not take action under 
        subparagraphs (A) through (D) of such paragraph.
    ``(d) Additional Reporting.--The Trade Representative shall report 
to the Committee on Finance of the Senate and the Committee on Ways and 
Means of the House of Representatives every 6 months on the progress 
being made to realize the trade enforcement priorities identified in 
subsection (a)(1)(A) and the steps being taken to address the priority 
foreign country trade practices identified in subsection (a)(1)(C).''.
    (b) Conforming Amendment.--The table of contents for the Trade Act 
of 1974 is amended by inserting after the item relating to section 310, 
the following new item:

        ``Sec. 311. Identification of trade enforcement priorities.''.

SEC. 3. ESTABLISHMENT OF POSITION OF CHIEF TRADE ENFORCEMENT OFFICER.

    (a) Establishment of Position.--Section 141(b)(2) of the Trade Act 
of 1974 (19 U.S.C. 2171(b)(2)) is amended to read as follows:
            ``(2) There shall be in the Office 3 Deputy United States 
        Trade Representatives, 1 Chief Agricultural Negotiator, and 1 
        Chief Trade Enforcement Officer. The 3 Deputy United States 
        Trade Representatives, the Chief Agricultural Negotiator, and 
        the Chief Trade Enforcement Officer shall be appointed by the 
        President, by and with the advice and consent of the Senate. As 
        an exercise of the rulemaking of the Senate, any nomination of 
        a Deputy United States Trade Representative, the Chief 
        Agricultural Negotiator, or the Chief Trade Enforcement Officer 
        submitted to the Senate for its advice and consent, and 
        referred to a committee, shall be referred to the Committee on 
        Finance. Each Deputy United States Trade Representative, the 
        Chief Agricultural Negotiator, and the Chief Trade Enforcement 
        Officer shall hold office at the pleasure of the President and 
        shall have the rank of Ambassador.''.
    (b) Functions of Position.--Section 141(c) of the Trade Act of 1974 
(19 U.S.C. 2171(c)) is amended by adding at the end the following new 
paragraph:
            ``(6) The principal function of the Chief Trade Enforcement 
        Officer shall be to ensure that United States trading partners 
        comply with trade agreements to which the United States is a 
        party. The Chief Trade Enforcement Officer shall assist the 
        United States Trade Representative in investigating and 
        prosecuting disputes before the World Trade Organization, and 
        pursuant to other trade agreements to which the United States 
        is a party, and shall assist the United States Trade 
        Representative in carrying out the Trade Representative's 
        functions under subsection (d). The Chief Trade Enforcement 
        Officer shall make recommendations with respect to the 
        administration of United States trade laws relating to foreign 
        government barriers to United States goods, services, 
        intellectual property, government procurement, and other trade 
        matters. The Chief Trade Enforcement Officer shall perform such 
        other functions as the United States Trade Representative may 
        direct.''.
    (c) Compensation.--Section 5314 of title 5, United States Code, is 
amended by inserting ``Chief Trade Enforcement Officer'' as a new item 
after ``Negotiator''.

SEC. 4. TRADE ENFORCEMENT WORKING GROUP.

    (a) Establishment.--Not later than 90 days after the date of the 
enactment of this Act, the United States Trade Representative shall 
establish an interagency Trade Enforcement Working Group (in this 
section referred to as the ``Working Group'') which shall be chaired by 
the Chief Trade Enforcement Officer of the Office of the United States 
Trade Representative.
    (b) Membership.--The Working Group shall include representatives 
from the Departments of Commerce, State Treasury, Agriculture, and such 
other departments and agencies as the United States Trade 
Representative considers appropriate.
    (c) Responsibility.--It shall be the responsibility of the Working 
Group to assist the Chief Trade Enforcement Officer in carrying out the 
principle functions described in section 141(c)(6) of the Trade Act of 
1974.

SEC. 5. SENSE OF CONGRESS REGARDING EXCHANGE RATES AND IMF REFORM.

    (a) Findings.--The Congress makes the following findings:
            (1) The global economy today is characterized by massive 
        imbalances that risk substantial disruption to global economic 
        growth.
            (2) The United States current account deficit is at the 
        heart of these global economic imbalances, predicted to reach 
        $800,000,000,000 in 2005.
            (3) A current account deficit of this size is unsustainable 
        and threatens the global economy with disruption and recession.
            (4) Policies to manipulate exchange rates help drive global 
        economic imbalances and the United States current account 
        deficit.
            (5) Asian central banks appear to manipulate their currency 
        through protracted, large-scale intervention in currency 
        markets, largely concentrated in United States dollar assets.
            (6) The policies of Asian central banks keep Asian 
        currencies from appreciating meaningfully against the dollar.
            (7) Protracted, large-scale intervention in international 
        currency markets runs counter to Article IV, section 1, 
        paragraph (iii) of the International Monetary Fund Articles of 
        Agreement and the General Principles governing the Article as 
        adopted by the International Monetary Fund Executive Board.
            (8) A principal function of the International Monetary Fund 
        is to monitor exchange rate regimes and to act to prevent 
        sustained currency market manipulation like that seen today in 
        Asia.
            (9) The United States is the largest shareholder in the 
        International Monetary Fund and is therefore best positioned to 
        urge the International Monetary Fund to enforce its provisions 
        on exchange rate policies.
            (10) The Department of the Treasury has to date not been 
        successful in urging the International Monetary Fund to enforce 
        Article IV, section 1, paragraph (iii) of the International 
        Monetary Fund Articles of Agreement.
    (b) Sense of the Congress.--
            (1) Exchange rate intervention.--It is the sense of the 
        Congress that--
                    (A) the President should instruct the United States 
                Executive Director to the International Monetary Fund 
                to request the Managing Director of the Fund to use 
                more aggressively the Fund's power to request 
                consultations with any member country regarding that 
                country's exchange rate policies. The purpose of the 
                consultations is to determine, and recommend remedial 
                action (if necessary), in a transparent manner--
                            (i) the extent of a country's direct or 
                        indirect intervention in currency markets for 
                        purposes contrary to the Articles of Agreement 
                        of the International Monetary Fund;
                            (ii) the effects of the intervention on the 
                        value of the currencies on member countries; 
                        and
                            (iii) the effects of the interventions on 
                        international economic imbalances; and
                    (B) the President should instruct the United States 
                Executive Director to the International Monetary Fund 
                to propose that the International Monetary Fund issue a 
                semi-annual report on exchange rate policies that 
                addresses all cases of large-scale intervention in 
                international currency markets, determines the effect 
                of these interventions on exchange rates, and proposes 
                remedial action to curtail such practices.
            (2) Reform of the international monetary fund.--It is the 
        sense of the Congress that the President should support efforts 
        to reform the International Monetary Fund to facilitate greater 
        vigilance over global exchange rates, and to ensure the 
        governance structure of the International Monetary Fund 
        represents the global economy, by instructing the United States 
        Executive Director to the International Monetary Fund to--
                    (A) lead a sustained and cooperative effort to 
                reform the International Monetary Fund Executive Board 
                to better represent large emerging economies, including 
                those in Asia;
                    (B) lead a sustained and cooperative effort to 
                reform the weighted votes of Member States to better 
                represent the significance of large emerging economies, 
                including those in Asia; and
                    (C) lead a comprehensive effort to review and 
                improve the transparency of the International Monetary 
                Fund, including publication of member country data and 
                information related to exchange rate policies.

SEC. 6. INFORMATION AND ADVICE FROM PRIVATE AND PUBLIC SECTORS.

    Section 135 of the Trade Act of 1974 (19 U.S.C. 2155) is amended--
            (1) in subsection (a)(1)--
                    (A) by striking ``and'' at the end of subparagraph 
                (B);
                    (B) by striking the period at the end of 
                subparagraph (C) and inserting ``; and''; and
                    (C) by adding at the end the following:
                    ``(D) preventing the loss of Federal and State 
                sovereignty in the negotiation, implementation, and 
                enforcement of a trade agreement.'';
            (2) in subsection (a)(2), by adding at the end the 
        following:
                    ``(E) The prevention of the loss of Federal and 
                State sovereignty during the negotiation, 
                implementation, and enforcement of trade agreements.'';
            (3) in subsection (e)(1), in the first sentence, by 
        inserting before the end period the following: ``, including an 
        assessment of the effect of the trade agreement on Federal and 
        State sovereignty and the extent to which State and local 
        governments were consulted in the negotiation of the free trade 
        agreement''; and
            (4) in subsection (e)(2), after ``United States'', by 
        inserting the following: ``, maintains Federal and State 
        sovereignty,''.

SEC. 7. SENSE OF CONGRESS REGARDING SOVEREIGNTY.

    (a) Findings.--The Congress makes the following findings:
            (1) America's economic growth and prosperity is best served 
        by embracing strategies to open fair global markets, investing 
        in innovative research and technologies that create the 
        industries and jobs, and engaging in, rather than being 
        isolated from, the challenges of international competition in 
        an increasingly interconnected world.
            (2) The overall negotiating objectives of our Nation in 
        negotiating trade agreements and treaties includes economic 
        growth, employment creation, sustainable development, and 
        improvements to living standards and market opportunities.
            (3) Another primary responsibility of the United States 
        Government is to ensure that Federal and State laws are not 
        usurped by foreign governments or organizations.
            (4) A World Trade Organization (WTO) panel recently 
        concluded that United States prohibitions on Internet gambling 
        violate the United States commitments under the WTO. 
        Specifically, the panel found that Federal and State gambling 
        laws of the United States that prohibit companies located in 
        Antigua and Barbuda from providing Internet gambling services 
        to United States consumers conflict with international trade 
        obligations under the General agreement on Trade in Services 
        (GATS).
    (b) Sense of Congress.--It is the sense of the Congress that--
            (1) in addition to the overall trade negotiating objectives 
        of the United States relating to economic growth, employment 
        creation, sustainable development, and improvement to living 
        standards and market opportunities, the United States policy 
        should be to prevent the loss of Federal and State sovereignty 
        in the negotiation, implementation, and enforcement of any 
        trade agreement; and
            (2) laws that State and local governments have validly 
        adopted, that are constitutional, and that reflect locally 
        appropriate responses to the needs of State and local 
        governments and residents, should not be overridden by 
        provisions in trade agreements.

SEC. 8. AUTHORIZATION OF APPROPRIATIONS.

    There is authorized to be appropriate $5,000,000 to the United 
States Trade Representative to carry out the provisions of this Act.
                                 <all>