Short title

This Act may be cited as the

End the Trade Deficit Act

Findings

The Congress makes the following findings: (1)In 1998, the United States trade balance was $166,140,000,000, leading the Congress to authorize the Trade Deficit Review Commission. The Commission was tasked to study the nature, causes, and consequences of the United States merchandise trade and current account deficits. (2)In 2007, the trade deficit ballooned to $700,258,000,000. And in 2006, the United States amassed the largest negative trade balance in its history, amounting to $753,283,000,000. (3)The United States has had 32 years of consecutive annual trade deficits, totaling $6,432,445,000,000. And in the last ten years, the annual trade balance has increased by a magnitude of seven. (4)The positive net international asset position that the United States built up over 100 years was eliminated in the 1980s. The United States today has become the world’s largest debtor nation, with a net debt of more than $2,441,800,000,000. (5)In recent times, the trade deficit has retarded growth in the Nation’s gross domestic product, increased the costs of servicing higher net foreign debt, and made the United States more dependent on international financial considerations. (6)The United States merchandise trade deficit is characterized by large bilateral trade imbalances with a handful of countries. In 2007, 15 countries accounted for 75 percent of the United States trade deficit in goods. The People’s Republic of China, Canada, Mexico, and Japan account for one-half of the trade deficit alone. (7)The United States manufacturing sector employed 13,919,000 people in 2007. But decline in manufacturing has meant the United States has lost 3,718,000 manufacturing jobs since 1998. (8)Elimination of the United States trade deficit by the year 2019 would support millions of additional manufacturing jobs in the United States. (9)While the United States has one of the most open borders and economies in the world, the United States faces significant tariff and nontariff trade barriers with its trading partners. Current overall trade balances do not reflect the actual competitiveness or productivity of the United States economy. Instead, they demonstrate the underlying structural nature of the trade deficits. (10)The United States is once again at a critical juncture in trade policy development. The structural nature of the United States trade deficit and its persistent growth must be reversed. The causes and consequences of the trade deficit must be documented and a plan must be developed to eliminate the merchandise trade deficit within the next 10 years.

Establishment of Commission

(a)

Establishment

There is established a commission to be known as the Emergency Commission To End the Trade Deficit (in this Act referred to as the Commission). (b)

Purpose

The purpose of the Commission is to develop a trade policy plan to eliminate the United States merchandise trade deficit by January 1, 2019, and to develop a competitive trade policy for the 21st century. The plan shall include strategies necessary to achieve a balance of trade that fully reflects the competitiveness and productivity of the United States and also improves the standard of living of United States citizens. (c)

Membership of commission

(1)

Composition

The Commission shall be composed of 11 members, of whom— (A)three shall be appointed by the President, of whom one shall be appointed to represent labor interests, one shall be appointed to represent small businesses, and one shall be appointed to represent consumer protection interests; (B)one Senator and one other person shall be appointed by the President pro tempore of the Senate, upon the recommendation of the majority leader of the Senate; (C)one Senator and one other person shall be appointed by the President pro tempore of the Senate, upon the recommendation of the minority leader of the Senate; (D)one Member of the House of Representatives and one other person shall be appointed by the Speaker of the House of Representatives; and (E)one Member of the House of Representatives and one other person shall be appointed by the minority leader of the House of Representatives. (2)

Qualifications of members

(A)

Presidential appointments

Of the persons appointed under paragraph (1)(A), not more than one may be an officer, employee, or paid consultant of the executive branch. (B)

Other appointments

Persons appointed under subparagraph (B), (C), (D), or (E) of paragraph (1) who are not Members of Congress shall be persons who— (i)have expertise in economics, international trade, manufacturing, labor, environment, or business, or have other pertinent qualifications or experience; and (ii)are not officers or employees of the United States. (C)

Other considerations

In appointing members of the Commission, every effort shall be made to ensure that the members— (i)are representative of a broad cross-section of economic and trade perspectives within the United States; and (ii)provide fresh insights to achieving a trade deficit reduction plan. (d)

Period of appointment; vacancies

(1)

In general

Members shall be appointed not later than 60 days after the date of the enactment of this Act and the appointment shall be for the life of the Commission. (2)

Vacancies

Any vacancy in the Commission shall not affect its powers, but shall be filled in the same manner as the original appointment was made. (e)

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. (f)

Meetings

The Commission shall meet at the call of the Chairperson. (g)

Chairperson and vice chairperson

The members of the Commission shall elect a chairperson and vice chairperson from among the members of the Commission. (h)

Quorum

A majority of the members of the Commission shall constitute a quorum for the transaction of business. (i)

Voting

Each member of the Commission shall be entitled to one vote, which shall be equal to the vote of every other member of the Commission.

Duties of the Commission

(a)

In general

The Commission shall be responsible for developing a comprehensive trade policy plan, by examining the economic policies, trade, tax, and investment laws, and other legal incentives and restrictions that are relevant to reducing the United States trade deficit. (b)

Recommendations

The Commission shall examine and make recommendations to Congress and the President on the following: (1)The manner in which the Government of the United States establishes and administers the Nation’s fundamental trade policies and objectives, including— (A)the relationship of the merchandise trade balance to the overall well-being of the United States economy and, in particular, the impact the trade balance has on wages and employment in the different sectors of the United States economy; (B)the relationship of United States foreign policy objectives to trade policy and the extent to which foreign policy considerations receive a priority over trade objectives; (C)the effects the trade deficits in the areas of manufacturing and technology have on defense production and innovation capabilities of the United States; (D)the extent to which United States monetary policies and the need for foreign capital to finance the current account deficit influence trade objectives; (E)the coordination, allocation, and accountability of trade responsibilities among Federal departments and agencies; and (F)the methods for improving and enhancing systematic congressional review of foreign policy and trade policy as part of a plan to establish a coordinated set of national economic priorities. (2)The causes and consequences of both the overall trade deficit and specific bilateral trade deficits, including— (A)identification and quantification of the macroeconomic, sectoral, and bilateral trade factors contributing to the United States trade deficit with different countries; (B)identification and quantification of the impact of the trade deficit on the domestic economy, on the industrial base, on manufacturing capacity, on the number and quality of jobs, on productivity, on wages, on health, safety, and environmental standards, and on the standard of living in the United States; (C)identification and quantification of individual industrial, manufacturing, and production sectors, and intra-industry and intra-company transactions that contribute to or are affected by United States trade deficits; (D)a review of the adequacy of the current collection and reporting of trade data, and the identification and development of additional databases and economic measurements that may be needed to properly quantify the factors described in subparagraphs (A), (B), and (C); (E)the relationship that tariff and nontariff barriers have to trade deficits and the extent to which trade deficits have become structural; (F)the extent to which there is reciprocal market access in each country with which the United States has a persistent and substantial bilateral trade deficit; and (G)the role of transhipments on bilateral trade, including foreign imports and exports, with special attention to transhipments through countries receiving trade preferences under the North American Free Trade Agreement. (3)The relationship of United States trade deficits to both comparative and competitive trade advantages within the global economy, including— (A)a systematic analysis of the United States trade patterns with different trading partners, to what extent the trade patterns are based on comparative and competitive trade advantages, and how the trade advantages relate to the goods that are exported to and imported from different trading partners; (B)the extent to which the increased mobility of capital and technology has changed both comparative and competitive trade advantages; (C)identification and quantification of goods imported into the United States that are produced with child or forced labor, or under social and environmental conditions that do not comply with United States law; (D)the impact that labor standards (including the ability of labor to organize, bargain collectively, and exercise human rights) have on world trade; (E)the impact that currency exchange rates and the manipulation of exchange rates have on world trade and trade deficits; (F)the effect that offset and technology transfer agreements have on the long-term competitiveness of the United States manufacturing sectors; and (G)the extent to which international agreements affect United States competitiveness. (4)The flow of investments both into and out of the United States, including— (A)the impact such investments have on the United States trade deficit and living standards of United States production workers; (B)the impact such investments have on United States labor, community, environmental, health, and safety standards; (C)the extent to which United States tax laws, such as income deferral, contribute to the movement of manufacturing facilities and jobs to foreign locations; (D)the identification and quantification of domestic plant closures and the movement of such plants to foreign locations for production of goods for the United States market; (E)the impact of implied or threatened plant closings and movement of jobs to foreign locations on United States wage rates and working conditions; (F)the effect of investment flows on wages in countries with developed economies and on countries of the former Soviet Union; and (G)the effect of barriers to United States foreign direct investment in developed and developing countries, particularly countries with which the United States has a trade deficit. (5)Evaluation of current policies and suggestions for alternative strategies for the United States to systematically reduce the trade deficit and improve the economic well-being of United States citizens, including suggestions for— (A)the development of bilateral and multilateral trade relationships based on market access reciprocity; (B)the retention and expansion of the manufacturing, agricultural, and technology sectors in the United States; (C)the discouragement of the expatriation of United States plants, jobs, and production to countries that have achieved competitive advantages by permitting lower wages or lower health, safety, and environmental standards, or by imposing requirements with respect to investment, performance, or other obligations; (D)methods by which the United States can effectively compete in a global economy while improving the labor, social, and environmental standards of its trading partners, particularly developing countries; (E)methods by which the United States can respond to substantial shifts or manipulation of currency exchange rates that distort trade relationships; (F)methods for overcoming and offsetting trade barriers that are either not subject to or otherwise inadequately addressed by the World Trade Organization or other multilateral arrangements; (G)specific strategies for achieving improved trade balances with those countries with which the United States has significant, persistent sectoral or bilateral trade deficits, including Canada, the People’s Republic of China, Mexico, and Japan; (H)methods for the United States to respond to the particular needs and circumstances of developing and developed countries in a manner that is mutually beneficial; and (I)changes that may be required to current trade agreements and organizations to allow the United States to pursue and nurture economic growth for its manufacturing, agriculture, and other production sectors in a manner that ensures improved compensation and quality of life for United States citizens.

Report; congressional hearings

(a)

Report

(1)

In general

Not later than 16 months after the date of the enactment of this Act, the Commission shall submit to the President and the Congress a report that contains— (A)the findings and conclusions of the Commission described in section 4; (B)a detailed plan for reducing both the overall trade deficit and specific bilateral trade deficits; and (C)any recommendations for administrative and legislative actions that may be necessary to achieve such reductions. (2)

Separate views

Any member of the Commission may submit additional findings and recommendations as part of the report. (b)

Congressional hearings

Not later than 6 months after the report described in subsection (a) is submitted, the Committee on Ways and Means of the House of Representatives and the Committee on Finance of the Senate shall hold hearings on the report.

Powers of 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 this Act. The Commission shall hold at least seven public hearings, one or more in Washington, DC, and four in different regions of the United States. (b)

Information from Federal agencies

The Commission may secure directly from any Federal department or agency such information as the Commission considers necessary to carry out this Act. Upon request of the Chairperson of the Commission, the head of such department or agency shall furnish such information to the Commission. (c)

Postal services

The Commission may use the United States mails in the same manner and under the same conditions as other departments and agencies of the Federal Government.

Commission personnel matters

(a)

Compensation of members

Each member of the Commission who is not an officer or employee of the Federal Government shall be compensated at a rate equal to the daily equivalent of the annual rate of basic pay prescribed for level IV of the Executive Schedule under section 5315 of title 5, United States Code, for each day (including travel time) during which such member is engaged in the performance of the duties of the Commission. All members of the Commission who are officers or employees of the United States shall serve without compensation in addition to that received for their services as officers or employees of the United States. (b)

Travel expenses

The members of the Commission shall be allowed travel expenses, including per diem in lieu of subsistence, at rates authorized for employees of agencies under subchapter I of chapter 57 of title 5, United States Code, while away from their homes or regular places of business in the performance of duties of the Commission. (c)

Staff

(1)

In general

The Chairperson of the Commission may, without regard to the civil service laws and regulations, appoint and terminate an executive director and such other additional personnel as may be necessary to enable the Commission to perform its duties. The employment of an executive director shall be subject to confirmation by the Commission. (2)

Compensation

The Chairperson of the Commission may fix the compensation of the executive director and other personnel without regard to the provisions of chapter 51 and subchapter III of chapter 53 of title 5, United States Code, relating to classification of positions and General Schedule pay rates, except that the rate of pay for the executive director and other personnel may not exceed the rate payable for level V of the Executive Schedule under section 5316 of such title. (d)

Detail of government employees

Any Federal Government employee may be detailed to the Commission without reimbursement, and such detail shall be without interruption or loss of civil service status or privilege. (e)

Procurement of temporary and intermittent services

The Chairperson of the Commission may procure temporary and intermittent services under section 3109(b) of title 5, United States Code, at rates for individuals which do not exceed the daily equivalent of the annual rate of basic pay prescribed for level V of the Executive Schedule under section 5316 of such title.

Authorization of appropriations; GAO audit

(a)

In general

There are authorized to be appropriated $2,000,000 to the Commission to carry out this Act. (b)

GAO audit

Not later than 6 months after the date on which the Commission terminates, the Comptroller General of the United States shall complete an audit of the financial books and records of the Commission and shall submit a report on the audit to the President and the Congress.

Termination of Commission

The Commission shall terminate 30 days after the date on which the Commission submits its report under section 5(a).

10.

Moratorium on free trade agreements

The President shall not submit to the Congress any free trade agreement, or any legislation implementing a free trade agreement, until— (1)the report of the Commission has been delivered to the Congress and the President under section 5(a); and (2)the committees of Congress referred to in section 5(b) have completed the hearings required under such section.