[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. 355 Introduced in Senate (IS)]







109th CONGRESS
  1st Session
                                 S. 355

  To require Congress to impose limits on United States foreign debt.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           February 10, 2005

  Mr. Dorgan (for himself and Mrs. Clinton) introduced the following 
  bill; which was read twice and referred to the Committee on Foreign 
                               Relations

_______________________________________________________________________

                                 A BILL


 
  To require Congress to impose limits on United States foreign debt.

    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 ``Foreign Debt Ceiling Act of 2005''.

SEC. 2. FOREIGN DEBT CEILING.

    (a) Findings.--Congress makes the following findings:
            (1) The United States has become the world's largest net 
        debtor Nation, having run up massive trade deficits since the 
        1990s.
            (2) At the end of 2002, the net United States foreign debt 
        stood at $2,553,000,000,000.
            (3) The United States foreign debt position worsened in 
        2003, when the United States had a record trade deficit of 
        $489,000,000,000, equivalent to 4.4 percent of the United 
        States GDP that year.
            (4) The large and growing United States foreign debt 
        represents claims on United States assets by foreign nationals, 
        which will eventually have to be repaid. If unchecked, the 
        foreign debt could seriously undermine our children's future 
        standard of living.
            (5) Moreover, the growing accumulation of foreign claims on 
        United States assets, including over $1,200,000,000,000 in 
        United States Treasury securities, makes the United States 
        economy vulnerable to the whims of foreign investors.
            (6) Congress presently places a ceiling on United States 
        public debt, but does not place a ceiling on United States 
        foreign debt.
            (7) Just as Congress recognized the importance of placing a 
        ceiling on the United States public debt, it is appropriate 
        that Congress place a limit on the United States foreign debt.
    (b) Actions Triggered by United States Foreign Debt.--
            (1) In general.--Not later than the 15th day of the second 
        month after the date of enactment of this Act, and every 3 
        months thereafter, the United States Trade Representative shall 
        determine if--
                    (A) the net United States foreign debt for the 
                preceding 12-month period is more than 25 percent of 
                United States GDP for the same period; or
                    (B) the United States trade deficit for the 
                preceding 12-month period is more than 5 percent of 
                United States GDP for the same period.
            (2) Action by ustr.--Whenever an affirmative determination 
        is made under paragraph (1) (A) or (B), the United States Trade 
        Representative shall--
                    (A) within 15 days of the determination, convene an 
                emergency meeting of the Trade Policy Review Group to 
                develop a plan of action to reduce the United States 
                trade deficit; and
                    (B) within 45 days of the determination, present to 
                Congress a report detailing the Trade Policy Review 
                Group's trade deficit reduction plan.
    (c) Measurement of Foreign Debt.--
            (1) Statistical sources.--For purposes of the calculations 
        described in subsection (b)(1), the United States Trade 
        Representative shall rely on the most recent period for which 
        the following data, published by the Department of Commerce, is 
        available:
                    (A) In the case of United States foreign debt, the 
                United States Trade Representative shall use the net 
                international investment position of the United States, 
                with direct investment positions determined at market 
                value, as compiled by the Bureau of Economic Analysis.
                    (B) In the case of the United States trade deficit, 
                the United States Trade Representative shall use the 
                goods and services trade deficit data compiled by the 
                United States Census Bureau.
                    (C) In the case of the United States GDP, the 
                United States Trade Representative shall use the 
                nominal gross domestic product data compiled by the 
                Bureau of Economic Analysis.
            (2) Adjustment.--The United States Trade Representative may 
        adjust the data described in paragraph (1) to ensure that the 
        determination is made for comparable time period.
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