[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7014 Introduced in House (IH)]







110th CONGRESS
  2d Session
                                H. R. 7014

   To provide for the renegotiation of the North American Free Trade 
                               Agreement.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           September 23, 2008

 Mr. English of Pennsylvania introduced the following bill; which was 
  referred to the Committee on Ways and Means, and in addition to the 
  Committees on Rules and the Budget, 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 provide for the renegotiation of the North American Free Trade 
                               Agreement.

    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 ``NAFTA Modernization Trade 
Negotiating Authority Act''.

SEC. 2. FINDINGS.

    The Congress makes the following findings:
            (1) Trade among NAFTA members more than tripled from 
        $297,000,000,000 to $930,000,000,000 between 1993 and 2007. 
        United States foreign direct investment in Mexico rose by 259 
        percent and Mexican foreign direct investment in the United 
        States increased by 244 percent.
            (2) United States exports to Mexico rose 91 percent from 
        1994 to 2003, compared to an aggregate of 41 percent to all 
        countries in the world. United States imports from Mexico 
        increased by 179 percent, compared to an aggregate of 89 
        percent from all countries in the world.
            (3) The United States International Trade Commission 
        estimated that NAFTA tariff preferences accounted for one-third 
        of United States import growth from Mexico and 13 percent of 
        growth of United States exports to Mexico.
            (4) The Congressional Budget Office suggested that 85 
        percent of United States export growth to Mexico and 91 percent 
        of United States import growth from Mexico would have occurred 
        without NAFTA.
            (5) Despite the aggregate growth in trade and investment, 
        NAFTA's share of the trade deficit has more than doubled from 
        nearly 8 percent to 20 percent over the past 14 years. This 
        reflects the shift in the United States trade balance with 
        Mexico from a $2,000,000,000 surplus to a $74,000,000,000 
        deficit. The trade deficit with Canada is now nearly six times 
        what it was in 1993 (an increase from $11,000,000,000 to 
        $65,000,000,000).
            (6) The trade surplus in services has fallen from 
        $92,000,000,000 in 1997 to $56,000,000,000 in 2005; in advanced 
        technology products, a surplus of $4,500,000,000 in 2001 
        declined to a deficit of $44,000,000,000 by 2005; and the long-
        time surplus in agriculture has virtually disappeared.
            (7) Imported oil is a driving force behind the United 
        States trade deficit, accounting for 57 percent of the deficit 
        in January 2008.
            (8) Since NAFTA's inception, the same 2 products (road 
        vehicles and petroleum) have accounted for one-third of United 
        States imports from Mexico and Canada each year. Road vehicles 
        (especially vehicle parts) and machinery have remained the top 
        2 exports, accounting for one-half of United States exports to 
        Mexico and Canada.
            (9) Mexico is the leading export destination for several 
        United States agricultural products, including beef, rice, 
        soybean meal, and apples. It is the second leading export 
        market for United States corn, soybeans and oils, and third for 
        pork, poultry, eggs, and cotton.
            (10) The 5 largest United States export sectors in 2007 
        were nuclear machinery and appliances, electrical machinery and 
        equipment, automobiles, aircraft, and optical, photographic, 
        and medical equipment.
            (11) United States exports and imports each saw a marginal 
        growth of 2 percent in 1994. In 2001, the United States 
        experienced an 11 percent marginal growth in exports and 8 
        percent marginal growth in imports.
            (12) Net United States employment increased by 24 percent 
        between 1993 and 2007. Since NAFTA went into effect, all 50 
        States have experienced job growth of at least 12 percent. 
        Contrary to these statistics, the Economic Policy Institute 
        estimates that 500,000 jobs are lost each year due to trade. A 
        study by the Commission argues that NAFTA had a minimal effect 
        on aggregate job growth if any at all.
            (13) Between 1994 and 2002, more than 500,000 jobs were 
        lost due to NAFTA, many of which were from the manufacturing 
        sector. The Economic Policy Institute estimates that in reality 
        more than 1,000,000 have been lost.
            (14) Between 1993 and 2006, the value of output in 
        manufacturing increased by 50 percent. However, United States 
        manufacturing's share of gross domestic product (GDP) declined 
        from 16 percent to 12 percent.
            (15) The real hourly compensation in the United States 
        business sector rose by 1.5 percent each year between 1993 and 
        2007.
            (16) In Mexico, real wages are actually lower and the 
        number of people in poverty has risen from 62,000,000 to 
        69,000,000 as of 2003. However, most studies attribute lower 
        wages more to the peso crisis of 1994, which caused a 25 
        percent fall in real wages in Mexico, and other economic 
        factors rather than NAFTA.
            (17) The United States International Trade Commission 
        suggests that trade in general has contributed to no more than 
        10 to 20 percent of the rising United States income gap between 
        more-skilled and less-skilled workers.
            (18) The number of people emigrating illegally from Mexico 
        to the United States is estimated to have doubled since NAFTA 
        went into effect.

SEC. 3. TRADE NEGOTIATING OBJECTIVES.

    (a) Overall Trade Negotiating Objectives.--The overall trade 
negotiating objectives of the United States for an agreement subject to 
the provisions of section 4 are--
            (1) to obtain more open, equitable, and reciprocal market 
        access;
            (2) to obtain the reduction or elimination of barriers and 
        distortion that are directly related to trade and that decrease 
        market opportunities for United States exports or otherwise 
        distort United States trade;
            (3) to further strengthen the system of international 
        trading disciplines and procedures, including dispute 
        settlement;
            (4) to foster economic growth, raise living standards, and 
        promote full employment in the United States and to enhance the 
        global economy; and
            (5) to ensure that domestic producers have access to a full 
        range of appropriate legal remedies against unfair trade 
        practices, including adequate and accessible antidumping, 
        countervailing duty, and safeguard mechanisms.
    (b) Principal Trade Negotiating Objectives.--The principal trade 
negotiating objectives of the United States for an agreement subject to 
the provisions of section 4 are as follows:
            (1) Trade barriers and distortions.--The principal 
        negotiating objectives of the United States regarding trade 
        barriers and other trade distortions are--
                    (A) to expand competitive market opportunities for 
                United States exports and to obtain fairer and more 
                open conditions of trade by reducing or eliminating 
                tariff and nontariff barriers and policies and 
                practices of foreign governments directly related to 
                trade that decrease market opportunities for United 
                States exports or otherwise distort United States 
                trade; and
                    (B) to obtain reciprocal tariff and nontariff 
                barrier elimination.
            (2) Trade in services.--The principal negotiating objective 
        of the United States regarding trade in services is to reduce 
        or eliminate barriers to international trade in services, 
        including regulatory and other barriers that deny national 
        treatment or unreasonably restrict the establishment or 
        operations of service suppliers.
            (3) Foreign investment.--The principal negotiating 
        objective of the United States regarding foreign investment is 
        to reduce or eliminate artificial or trade-distorting barriers 
        to trade-related foreign investment by--
                    (A) reducing or eliminating exceptions to the 
                principle of national treatment;
                    (B) freeing the transfer of funds relating to 
                investments;
                    (C) reducing or eliminating performance 
                requirements and other unreasonable barriers to the 
                establishment and operation of investments;
                    (D) seeking to establish standards for 
                expropriation and compensation for expropriation, 
                consistent with United States legal principles and 
                practice; and
                    (E) providing meaningful procedures for resolving 
                investment disputes.
            (4) Intellectual property.--The principal negotiating 
        objectives of the United States regarding trade-related 
        intellectual property are--
                    (A) to further promote adequate and effective 
                protection of intellectual property rights, including 
                through--
                            (i)(I) ensuring accelerated and full 
                        implementation of the Agreement on Trade-
                        Related Aspects of Intellectual Property Rights 
                        referred to in section 101(d)(15) of the 
                        Uruguay Round Agreements Act (19 U.S.C. 
                        3511(d)(15)), particularly with respect to 
                        United States industries whose products are 
                        subject to the lengthiest transition periods 
                        for full compliance by developing countries 
                        with that Agreement; and
                            (II) ensuring that an agreement subject to 
                        section 4 provides protection at least as 
                        strong as the protection afforded by chapter 17 
                        of the NAFTA and the annexes thereto;
                            (ii) providing strong protection for new 
                        and emerging technologies and new methods of 
                        transmitting and distributing products 
                        embodying intellectual property;
                            (iii) preventing or eliminating 
                        discrimination with respect to matters 
                        affecting the availability, acquisition, scope, 
                        maintenance, use, and enforcement of 
                        intellectual property rights; and
                            (iv) providing strong enforcement of 
                        intellectual property rights, including through 
                        accessible, expeditious, and effective civil, 
                        administrative, and criminal enforcement 
                        mechanisms; and
                    (B) to secure fair, equitable, and 
                nondiscriminatory market access opportunities for 
                United States persons that rely upon intellectual 
                property protection.
            (5) Transparency.--The principal negotiating objective of 
        the United States with respect to transparency is to obtain 
        broader application of the principle of transparency through--
                    (A) increased and more timely public access to 
                information regarding trade issues and the activities 
                of international trade institutions; and
                    (B) increased openness of dispute settlement 
                proceedings, including under the World Trade 
                Organization.
            (6) Reciprocal trade in agriculture.--
                    (A) In general.--The principle negotiating 
                objective of the United States with respect to 
                agriculture is to obtain competitive opportunities for 
                United States exports of agricultural commodities in 
                foreign markets, and to achieve fairer and more open 
                conditions of trade in bulk and value-added commodities 
                by--
                            (i) reducing or eliminating, by a date 
                        certain, tariffs or other charges that decrease 
                        market opportunities for United States exports, 
                        giving priority to those products that are 
                        subject to significantly higher tariffs or 
                        subsidy regimes of major producing countries;
                            (ii) reducing or eliminating subsidies that 
                        decrease market opportunities for United States 
                        exports or unfairly distort agriculture markets 
                        to the detriment of the United States;
                            (iii) developing, strengthening, and 
                        clarifying rules and effective dispute 
                        settlement mechanisms to eliminate practices 
                        that unfairly decrease market access 
                        opportunities for the United States or distort 
                        agricultural markets to the detriment of the 
                        United States, particularly with respect to 
                        import-sensitive agricultural products, 
                        including--
                                    (I) unfair or trade-distorting 
                                activities of State trading enterprises 
                                and other administrative mechanisms, 
                                with emphasis on requiring price 
                                transparency in the operation of State 
                                trading enterprises and such other 
                                mechanisms;
                                    (II) unjustified trade restrictions 
                                or commercial requirements affecting 
                                new technologies, including 
                                biotechnologies;
                                    (III) unjustified sanitary or 
                                phytosanitary restrictions, including 
                                those not based on scientific 
                                principles in contravention of the 
                                Uruguay Round Agreements;
                                    (IV) other unjustified technical 
                                barriers to trade; and
                                    (V) restrictive rules in the 
                                administration of tariff rate quotas;
                            (iv) improving import relief mechanisms to 
                        recognize the unique characteristics of 
                        perishable and seasonal agricultural products;
                            (v) taking into account whether a party to 
                        the negotiations has failed to adhere to the 
                        provisions of already existing trade agreements 
                        with the United States or has circumvented 
                        obligations under those agreements; and
                            (vi) taking into account whether a product 
                        is subject to market distortions by reason of a 
                        failure to adhere to the provisions of the 
                        already existing trade agreements with the 
                        United States or by the circumvention by that 
                        country of its obligations under those 
                        agreements.
                    (B) Seasonal and perishable commodities.--Before 
                commencing negotiations with respect to agriculture, 
                the United States Trade Representative, in consultation 
                with the Congressional Oversight Group convened under 
                section 7, shall seek to develop a position on the 
                treatment of seasonal and perishable agriculture 
                products to be employed in the negotiations in order to 
                develop an international consensus on the treatment of 
                seasonal or perishable agricultural products in 
                investigations relating to dumping, countervailing 
                duties, safeguards, and any other relevant area.
            (7) Labor and the environment.--The principle negotiating 
        objectives of the United States regarding labor and the 
        environment are the following:
                    (A) To ensure parties to the agreement adopt, 
                maintain, and enforce in their own laws and in practice 
                the following basic internationally recognized labor 
                standards, as stated in the 1998 ILO Declaration on the 
                Fundamental Principles and Rights at Work:
                            (i) Freedom of association.
                            (ii) The effective recognition of the right 
                        to collective bargaining.
                            (iii) The elimination of all forms of 
                        forced or compulsory labor.
                            (iv) The effective abolition of child labor 
                        and a prohibition on the worst forms of child 
                        labor.
                            (v) The elimination of discrimination in 
                        respect of employment and occupation.
                    (B)(i) To recognize that parties to the agreement 
                retain the right to exercise discretion with respect to 
                investigatory, prosecutorial, regulatory, and 
                compliance matters and to make decisions regarding the 
                allocation of resources to enforcement with respect to 
                other labor or environmental matters determined to have 
                higher priorities.
                    (ii) To recognize that a country is effectively 
                enforcing its laws if a course of action or inaction 
                reflects a reasonable exercise of such discretion, or 
                results from a bona fide decision regarding the 
                allocation of resources.
                    (iii) To provide that a party does not violate its 
                obligations under the agreement--
                            (I) by taking action under clause (i) or 
                        clause (ii); or
                            (II) by exercising the right to establish 
                        domestic labor standards and levels of 
                        environmental protection.
                    (C) To ensure that parties to the agreement cannot 
                derogate from labor obligations in the agreement in a 
                manner affecting trade or investment.
                    (D) To ensure that labor obligations in the 
                agreement are subject to the same dispute settlement, 
                same enforcement mechanisms, and same criteria for 
                selection of enforcement mechanisms as all other 
                obligations under the agreement.
                    (E) To strengthen the capacity of United States 
                trading partners to promote respect for core labor 
                standards.
                    (F) To strengthen the capacity of United States 
                trading partners to protect the environment through the 
                promotion of sustainable development.
                    (G) To reduce or eliminate government practices or 
                policies that unduly threaten sustainable development.
                    (H) To seek market access, through the elimination 
                of tariffs and nontariff barriers, for United States 
                environmental technologies, goods, and services.
                    (I) To ensure that labor, environmental, health, or 
                safety policies and practices of the parties to the 
                agreement do not arbitrarily or unjustifiably 
                discriminate against United States exports or serve as 
                disguised barriers to trade.
                    (J) To ensure that each party to the agreement 
                adopts, implements, and effectively enforces laws, 
                regulations, and all other measures to fulfill that 
                party's obligations under each of the following 
                multilateral environmental agreements to which they are 
                both parties, subject to existing and future 
                reservations to such agreements:
                            (i) The Convention on International Trade 
                        in Endangered Species.
                            (ii) The Montreal Protocol on Ozone 
                        Depleting Substances.
                            (iii) The Convention on Marine Pollution.
                            (iv) The Inter-American Tropical Tuna 
                        Convention.
                            (v) The Ramsar Convention on the Wetlands.
                            (vi) The International Convention on the 
                        Regulation of Whaling.
                            (vii) The Convention on Conservation of 
                        Antarctic Marine Living Resources.
                    (K) To ensure that environmental obligations in the 
                agreement are subject to the same dispute settlement, 
                same enforcement mechanisms, and same criteria for 
                selection of enforcement mechanisms as all other 
                obligations under the agreement.
            (8) Trade remedy laws.--The principle negotiating 
        objectives of the United States with respect to trade remedy 
        laws are--
                    (A) to preserve the ability of the United States to 
                enforce rigorously its trade laws, including the 
                antidumping, countervailing duty, and safeguard laws, 
                and to avoid an agreement that lessens the 
                effectiveness of domestic and international disciplines 
                on unfair trade, especially dumping and subsidies, or 
                that lessens the effectiveness of domestic and 
                international safeguard provisions, in order to ensure 
                that United States workers, agricultural producers, and 
                firms can compete fully on fair terms and enjoy the 
                benefits of reciprocal trade concessions; and
                    (B) to address and remedy market distortions that 
                lead to dumping and subsidization, including 
                overcapacity, cartelization, and market-access 
                barriers.
    (c) Special Negotiating Objectives.--
            (1) Nafta-country specific objectives.--Negotiators 
        negotiating on behalf of the United States shall ensure that 
        any new trade agreement entered into with Canada, Mexico, or 
        both countries meets or exceeds the standards established in 
        the areas of labor and environment, dispute settlement, 
        intellectual property, services, foreign investment, and 
        agriculture of trade agreements negotiated under the Bipartisan 
        Trade Promotion Authority Act of 2002.
            (2) Domestic objectives.--In pursuing the negotiating 
        objectives under subsections (a), (b) and paragraph (1) of this 
        subsection, the negotiators on behalf of the United States 
        shall take into account United States domestic objectives, 
        including the protection of health and safety, essential 
        security, environmental, consumer, and employment opportunity 
        interests, and the law and regulations related thereto.
            (3) Applicability of trade negotiation procedures.--Nothing 
        in this subsection shall be construed to authorize the exercise 
        of the trade negotiation procedures under section 4 to modify 
        United States Federal law.

SEC. 4. LIMITED TRADE NEGOTIATING AUTHORITY FOR THE PURPOSES OF 
              MODERNIZING THE NORTH AMERICAN FREE TRADE AGREEMENT.

    (a) North American Free Trade Agreement Modernization.--
            (1) In general.--Whenever the President determines that--
                    (A) the reduction or elimination of tariff or 
                nontariff barriers of any foreign country or the United 
                States or any other barrier to, or other distortion of, 
                international trade unduly burdens or restricts the 
                foreign trade of the United States or adversely affects 
                the United States economy, and
                    (B) the imposition of any such barrier or 
                distortion is likely to result in such a burden, 
                restriction, or effect, and that the purposes, 
                policies, priorities, and objectives of this Act will 
                be promoted thereby,
        the President may enter into a trade agreement described in 
        paragraph (2) with Canada, Mexico, or both countries during the 
        period described in paragraph (3).
            (2) Trade agreement described.--The President may enter 
        into a trade agreement under paragraph (1) with Canada, Mexico, 
        or both countries providing for--
                    (A) the reduction or elimination of a duty, 
                restriction, barrier, or other distortion described in 
                paragraph (1); or
                    (B) the prohibition of, or limitation on the 
                imposition of, such barrier or other distortion.
            (3) Time limitation.--The President may enter into a trade 
        agreement under this subsection before August 1, 2009.
    (b) Conditions.--A trade agreement may be entered into under this 
section only if such agreement makes progress in meeting the applicable 
objectives described in subsections (a) and (b) of section 3 and the 
President satisfies the conditions set forth in section 5.
    (c) Bills Qualifying for Trade Authorities Procedures.--
            (1) In general.--The provisions of section 151 of the Trade 
        Act of 1974 (in this Act referred to as ``trade authorities 
        procedures'') apply to a bill of either House of Congress that 
        contains provisions described in paragraph (2) to the same 
        extent as such section 151 applies to implementing bills under 
        that section. A bill to which this subsection applies shall in 
        this Act be referred to as an ``implementing bill''.
            (2) Provisions in implementing bills.--The provisions 
        referred to in paragraph (1) are--
                    (A) a provision approving a trade agreement entered 
                into under this section and approving the statement of 
                administrative action, if any, proposed to implement 
                such trade agreement; and
                    (B) if changes in existing laws or new statutory 
                authority are required to implement such trade 
                agreement, provisions, necessary or appropriate to 
                implement such trade agreement, either repealing or 
                amending existing laws or providing new statutory 
                authority.
    (d) Commencement of Negotiations.--In order to contribute to the 
continued economic expansion of the United States, the President shall 
commence negotiations under subsection (a) covering tariff and 
nontariff barriers affecting any industry, product, or service sector. 
In so doing, the President shall take into account all of the principal 
negotiating objectives set forth in section 3(b).

SEC. 5. CONSULTATIONS AND ASSESSMENT.

    (a) Notice and Consultation Before Negotiation.--The President, 
with respect to any agreement that is subject to the section 4(a), 
shall--
            (1) provide, at least 90 calendar days before initiating 
        negotiations, written notice to the Congress of the President's 
        intention to enter into the negotiations and set forth therein 
        the date the President intends to initiate such negotiations, 
        the specific United States objectives for the negotiations, and 
        whether the President intends to seek an agreement, or changes 
        to an existing agreement;
            (2) before and after submission of the notice, consult 
        regarding the negotiations with the Committee on Finance of the 
        Senate and the Committee on Ways and Means of the House of 
        Representatives, such other committees of the House and Senate 
        as the President deems appropriate, and the Congressional 
        Oversight group convened under section 7; and
            (3) upon the request of a majority of the members of the 
        Congressional Oversight Group under section 7(c), meet with the 
        Congressional Oversight Group before initiating the 
        negotiations or at any other time concerning the negotiations.
    (b) Negotiations Regarding Agriculture.--
            (1) In general.--Before initiating negotiations (with 
        respect to an agreement subject to section 4) the subject 
        matter of which directly relates to the subject matter under 
        section 3(b)(6)(A)(i) with any country, the President shall 
        assess whether United States tariffs on agricultural products 
        that were bound under the Uruguay Round Agreements are lower 
        than the tariffs bound by that country. In addition, the 
        President shall consider whether the tariff levels bound and 
        applied throughout the world with respect to imports from the 
        United States are higher than United States tariffs and whether 
        the negotiation provides an opportunity to address any such 
        disparity. The President shall consult with the Committee on 
        Ways and Means and the Committee on Agriculture of the House of 
        Representatives and the Committee on Finance and the Committee 
        on Agriculture, Nutrition, and Forestry of the Senate 
        concerning the results of the assessment, whether it is 
        appropriate for the United States to agree to further tariff 
        reductions based on the conclusions reached in the assessment, 
        and how all applicable negotiating objectives will be met.
            (2) Special consultations on import sensitive products.--
                    (A) Before initiating negotiations.--Before 
                initiating negotiations (with respect to an agreement 
                subject to section 4) with regard to agriculture, the 
                United States Trade Representative shall--
                            (i) identify those agricultural products 
                        subject to tariff-rate quotas on the date of 
                        the enactment of this Act, and agricultural 
                        products subject to tariff reductions by the 
                        United States as a result of the Uruguay Round 
                        Agreements, for which the rate of duty was 
                        reduced on January 1, 1995, to a rate that was 
                        not less than 97.5 percent of the rate of duty 
                        that applied to such article on December 31, 
                        1994;
                            (ii) consult with the Committee on Ways and 
                        Means and the Committee on Agriculture of the 
                        House of Representatives and the Committee on 
                        Finance and the Committee on Agriculture, 
                        Nutrition, and Forestry of the Senate 
                        concerning--
                                    (I) whether any further tariff 
                                reductions on the products identified 
                                under clause (i) should be appropriate, 
                                taking into account the impact of any 
                                such tariff reduction on the United 
                                States industry producing the product 
                                concerned;
                                    (II) whether the products so 
                                identified face unjustified sanitary or 
                                phytosanitary restrictions, including 
                                those not based on scientific 
                                principles in contravention of the 
                                Uruguay Round Agreements; and
                                    (III) whether the countries 
                                participating in the negotiations 
                                maintain export subsidies or other 
                                programs, policies, or practices that 
                                distort world trade in such products 
                                and the impact of such programs, 
                                policies, and practices on United 
                                States producers of the products;
                            (iii) request that the Commission prepare 
                        an assessment of the probable economic effects 
                        of any such tariff reduction on the United 
                        States industry producing the product concerned 
                        and on the United States economy as a whole; 
                        and
                            (iv) upon complying with clauses (i), (ii), 
                        and (iii), notify the Committee on Ways and 
                        Means and the Committee on Agriculture of the 
                        House of Representatives and the Committee on 
                        Finance and the Committee on Agriculture, 
                        Nutrition, and Forestry of the Senate of those 
                        products identified under clause (i) for which 
                        the Trade Representative intends to seek tariff 
                        liberalization in the negotiations and the 
                        reasons for seeking such tariff liberalization.
                    (B) After negotiations commenced.--If, after 
                negotiations described in subparagraph (A) are 
                commenced--
                            (i) the United States Trade Representative 
                        identifies any additional agricultural product 
                        described in subparagraph (A)(i) for tariff 
                        reductions that were not the subject of a 
                        notification under subparagraph (A)(iv), or
                            (ii) any additional agricultural product 
                        described in subparagraph (A)(i) is the subject 
                        of a request for tariff reductions by a party 
                        to the negotiations,
                the Trade Representative shall, as soon as practicable, 
                notify the committees referred to in subparagraph 
                (A)(iv) of those products and the reasons for seeking 
                such tariff reductions.
            (3) Negotiations regarding the fishing industry.--Before 
        initiating negotiations (with respect to an agreement subject 
        to section 4) the subject matter of which relates directly to 
        fish or shellfish trade, the President shall consult with the 
        Committee on Ways and Means and the Committee on Resources of 
        the House of Representatives, and the Committee on Finance and 
        the Committee on Commerce, Science, and Transportation of the 
        Senate, and shall keep the Committees apprised of the 
        negotiations on an ongoing and timely basis.
    (c) Negotiations Regarding Textiles.--Before initiating 
negotiations with a country (with respect to an agreement subject to 
section 4) the subject matter of which relates directly to textiles and 
apparel products, the President shall assess whether United States 
tariffs on textile and apparel products that were bound under the 
Uruguay Round Agreements are lower than the tariffs bound by that 
country and whether the negotiation provides an opportunity to address 
any such disparity. The President shall consult with the Committee on 
Ways and Means of the House of Representatives and the Committee on 
Finance of the Senate concerning the results of the assessment, whether 
it is appropriate for the United States to agree to further tariff 
reductions based on the conclusions reached in the assessment, and how 
all applicable negotiating objectives will be met.
    (d) Consultation With Congress Before Agreement Entered Into.--
            (1) Consultation.--Before entering into a trade agreement 
        under section 4(a), the President shall consult with--
                    (A) the Committee on Ways and Means of the House of 
                Representatives and the Committee on Finance of the 
                Senate;
                    (B) each other committee of the House and the 
                Senate, and each joint committee of the Congress, that 
                has jurisdiction over legislation involving subject 
                matters that would be affected by the trade agreement; 
                and
                    (C) the Congressional Oversight Group convened 
                under section 7.
            (2) Scope.--The consultation described in paragraph (1) 
        shall include consultation with respect to--
                    (A) the nature of the agreement;
                    (B) how and to what extent the agreement will 
                achieve the applicable purposes, policies, priorities, 
                and objectives of this Act; and
                    (C) the implementation of the agreement under 
                section 6, including the general effect of the 
                agreement on existing laws.
            (3) Report regarding united states trade remedy laws.--The 
        President, at least 180 calendar days before the day on which 
        the President enters into a trade agreement under section 4(a), 
        shall report to the Committee on Ways and Means of the House of 
        Representatives and the Committee on Finance of the Senate--
                    (A) the range of proposals advanced in the 
                negotiations with respect to that agreement, that may 
                be in the final agreement, and that could require 
                amendments to title VII of the Tariff Act of 1930 or to 
                chapter 1 of title II of the Trade Act of 1974; and
                    (B) how these proposals relate to the objectives 
                described in section 3(b)(8).
    (e) Advisory Committee Reports.--The report required under section 
135(e)(1) of the Trade Act of 1974 regarding any trade agreement 
entered into under section 4(a) of this Act shall be provided to the 
President, the Congress, and the United States Trade Representative not 
later than 30 days after the date on which the President notifies the 
Congress under section 6(a)(1)(A) of the President's intention to enter 
into the agreement.
    (f) ITC Assessment.--
            (1) In general.--The President, at least 90 calendar days 
        before the day on which the President enters into a trade 
        agreement under section 4(a), shall provide the Commission with 
        the details of the agreement as it exists at that time and 
        request the Commission to prepare and submit an assessment of 
        the agreement as described in paragraph (2). Between the time 
        the President makes the request under this paragraph and the 
        time the Commission submits the assessment, the President shall 
        keep the Commission current with respect to the details of the 
        agreement.
            (2) ITC assessment.--Not later than 90 calendar days after 
        the President enters into the agreement, the Commission shall 
        submit to the President and the Congress a report assessing the 
        likely impact of the agreement on the United States economy as 
        a whole and on specific industry sectors, including the impact 
        the agreement will have on the gross domestic product, exports 
        and imports, aggregate employment and employment opportunities, 
        the production, employment, and competitive position of 
        industries likely to be significantly affected by the 
        agreement, and the interests of United States consumers.
            (3) Review of empirical literature.--In preparing the 
        assessment, the Commission shall review available economic 
        assessments regarding the agreement, including literature 
        regarding any substantially equivalent proposed agreement, and 
        shall provide in its assessment a description of the analyses 
        used and conclusions drawn in such literature, and a discussion 
        of areas of consensus and divergence between the various 
        analyses and conclusions, including those of the Commission 
        regarding the agreement.

SEC. 6. IMPLEMENTATION OF TRADE AGREEMENT.

    (a) In General.--
            (1) Notification and submission.--Any agreement entered 
        into under section 4(a) shall enter into force with respect to 
        the United States if (and only if)--
                    (A) the President, at least 90 calendar days before 
                the day on which the President enters into the trade 
                agreement, notifies the House of Representatives and 
                the Senate of the President's intention to enter into 
                the agreement, and promptly thereafter publishes notice 
                of such intention in the Federal Register;
                    (B) within 60 days after entering into the 
                agreement, the President submits to the Congress a 
                description of those changes to existing laws that the 
                President considers would be required in order to bring 
                the United States into compliance with the agreement;
                    (C) after entering into the agreement, the 
                President submits to the Congress, on a day on which 
                both Houses of Congress are in session, a copy of the 
                final legal text of the agreement, together with--
                            (i) a draft of an implementing bill 
                        described in section 4(c);
                            (ii) a statement of any administrative 
                        action proposed to implement the trade 
                        agreement; and
                            (iii) the supporting information described 
                        in paragraph (2); and
                    (D) the implementing bill is enacted into law.
            (2) Supporting information.--The supporting information 
        required under paragraph (1)(C)(iii) consists of--
                    (A) an explanation as to how the implementing bill 
                and proposed administrative action will change or 
                affect existing law; and
                    (B) a statement--
                            (i) asserting that the agreement makes 
                        progress in achieving the applicable purposes, 
                        policies, priorities, and objectives of this 
                        Act; and
                            (ii) setting forth the reasons of the 
                        President regarding--
                                    (I) how and to what extent the 
                                agreement makes progress in achieving 
                                the applicable purposes, policies, and 
                                objectives referred to in clause (i);
                                    (II) whether and how the agreement 
                                changes provisions of an agreement 
                                previously negotiated;
                                    (III) how the agreement serves the 
                                interests of United States commerce;
                                    (IV) how the implementing bill 
                                meets the standards set forth in 
                                section 4(c); and
                                    (V) how and to what extent the 
                                agreement makes progress in achieving 
                                the applicable purposes, policies, and 
                                objectives referred to in section 3(c) 
                                regarding the promotion of certain 
                                priorities.
            (3) Reciprocal benefits.--In order to ensure that a foreign 
        country that is not a party to a trade agreement entered into 
        under section 4(a) does not receive benefits under the 
        agreement unless the country is also subject to the obligations 
        under the agreement, the implementing bill submitted with 
        respect to the agreement shall provide that the benefits and 
        obligations under the agreement apply only to the parties to 
        the agreement, if such application is consistent with the terms 
        of the agreement. The implementing bill may also provide that 
        the benefits and obligations under the agreement do not apply 
        uniformly to all parties to the agreement, if such application 
        is consistent with the terms of the agreement.
            (4) Disclosure of commitments.--Any agreement or other 
        understanding with a foreign government or governments (whether 
        oral or in writing) that--
                    (A) relates to a trade agreement with respect to 
                which the Congress enacts an implementing bill under 
                trade authorities procedures, and
                    (B) is not disclosed to the Congress before an 
                implementing bill with respect to that agreement is 
                introduced in either House of Congress,
        shall not be considered to be part of the agreement approved by 
        the Congress and shall have no force or effect under United 
        States law or in any dispute settlement body.
    (b) Limitations on Trade Authorities Procedures.--
            (1) For lack of notice or consultations.--
                    (A) In general.--The trade authorities procedures 
                shall not apply to any implementing bill submitted with 
                respect to a trade agreement entered into under section 
                4(a) if during the 60-day period beginning on the date 
                that one House of Congress agrees to a procedural 
                disapproval resolution for lack of notice or 
                consultations with respect to such trade agreement, the 
                other House separately agrees to a procedural 
                disapproval resolution with respect to such trade 
                agreement.
                    (B) Procedural disapproval resolution.--(i) For 
                purposes of this paragraph, the term ``procedural 
                disapproval resolution'' means a resolution of either 
                House of Congress, the sole matter after the resolving 
                clause of which is as follows: ``That the President has 
                failed or refused to notify or consult in accordance 
                with the NAFTA Modernization Trade Promotion Authority 
                Act on negotiations with respect to ______ and, 
                therefore, the trade authorities procedures under that 
                Act shall not apply to any implementing bill submitted 
                with respect to such trade agreement or agreements.'', 
                with the blank space being filled with a description of 
                the trade agreement with respect to which the President 
                is considered to have failed or refused to notify or 
                consult.
                    (ii) For purposes of clause (i), the President has 
                ``failed or refused to notify or consult in accordance 
                with the NAFTA Modernization Trade Promotion Authority 
                Act'' on negotiations with respect to a trade agreement 
                if--
                            (I) the President has failed or refused to 
                        consult (as the case may be) in accordance with 
                        section 5 or this section with respect to the 
                        negotiations or agreement;
                            (II) guidelines under section 7(b) have not 
                        been developed or met with respect to the 
                        negotiations or agreement;
                            (III) the President has not met with the 
                        Congressional Oversight Group pursuant to a 
                        request made under section 7(c) with respect to 
                        the negotiations or agreement; or
                            (IV) the agreement fails to make progress 
                        in achieving the purposes, policies, 
                        priorities, and objectives of this Act.
            (2) Procedures for considering resolutions.--(A) Procedural 
        disapproval resolutions--
                            (i) in the House of Representatives--
                                    (I) may be introduced by any Member 
                                of the House;
                                    (II) shall be referred to the 
                                Committee on Ways and Means and, in 
                                addition, to the Committee on Rules; 
                                and
                                    (III) may not be amended by either 
                                Committee; and
                            (ii) in the Senate--
                                    (I) may be introduced by any Member 
                                of the Senate;
                                    (II) shall be referred to the 
                                Committee on Finance; and
                                    (III) may not be amended.
                    (B) The provisions of section 152(d) and (e) of the 
                Trade Act of 1974 (19 U.S.C. 2192(d) and (e)) (relating 
                to the floor consideration of certain resolutions in 
                the House and Senate) apply to a procedural disapproval 
                resolution introduced with respect to a trade agreement 
                if no other procedural disapproval resolution with 
                respect to that trade agreement has previously been 
                reported in that House of Congress by the Committee on 
                Ways and Means or the Committee on Finance, as the case 
                may be.
                    (C) It is not in order for the House of 
                Representatives to consider any procedural disapproval 
                resolution not reported by the Committee on Ways and 
                Means and, in addition, by the Committee on Rules.
                    (D) It is not in order for the Senate to consider 
                any procedural disapproval resolution not reported by 
                the Committee on Finance.
    (c) Rules of House of Representatives and Senate.--Subsection (b) 
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 are 
        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. 7. CONGRESSIONAL OVERSIGHT GROUP.

    (a) Members and Functions.--
            (1) In general.--By not later than 60 days after the date 
        of the enactment of this Act, and not later than 30 days after 
        the convening of each Congress, the chairman of the Committee 
        on Ways and Means of the House of Representatives and the 
        chairman of the Committee on Finance of the Senate shall 
        convene the Congressional Oversight Group.
            (2) Membership from the house.--In each Congress, the 
        Congressional Oversight Group shall be comprised of the 
        following Members of the House of Representatives:
                    (A) The chairman and ranking member of the 
                Committee on Ways and Means, and 3 additional members 
                of such Committee (not more than 2 of whom are members 
                of the same political party).
                    (B) The chairman and ranking member, or their 
                designees, of the committees of the House of 
                Representatives that would have, under the Rules of the 
                House of Representatives, jurisdiction over provisions 
                of law affected by a trade agreement negotiations for 
                which are conducted at any time during that Congress 
                and to which this Act would apply.
            (3) Membership from the senate.--In each Congress, the 
        Congressional Oversight Group shall also be comprised of the 
        following members of the Senate:
                    (A) The chairman and ranking member of the 
                Committee on Finance and 3 additional members of such 
                Committee (not more than 2 of whom are members of the 
                same political party).
                    (B) The chairman and ranking member, or their 
                designees, of the committees of the Senate that would 
                have, under the Rules of the Senate, jurisdiction over 
                provisions of law affected by a trade agreement 
                negotiations for which are conducted at any time during 
                that Congress and to which this Act would apply.
            (4) Accreditation.--Each member of the Congressional 
        Oversight Group described in paragraph (2)(A) and (3)(A) shall 
        be accredited by the United States Trade Representative on 
        behalf of the President as an official adviser to the United 
        States delegation in negotiations for any trade agreement to 
        which this Act applies. Each member of the Congressional 
        Oversight Group described in paragraph (2)(B) and (3)(B) shall 
        be accredited by the United States Trade Representative on 
        behalf of the President as an official adviser to the United 
        States delegation in the negotiations by reason of which the 
        member is in the Congressional Oversight Group. The 
        Congressional Oversight Group shall consult with and provide 
        advice to the Trade Representative regarding the formulation of 
        specific objectives, negotiating strategies and positions, the 
        development of the applicable trade agreement, and compliance 
        and enforcement of the negotiated commitments under the trade 
        agreement.
            (5) Chair.--The Congressional Oversight Group shall be 
        chaired by the Chairman of the Committee on Ways and Means of 
        the House of Representatives and the Chairman of the Committee 
        on Finance of the Senate.
    (b) Guidelines.--
            (1) Purpose and revision.--The United States Trade 
        Representative, in consultation with the chairmen and ranking 
        minority members of the Committee on Ways and Means of the 
        House of Representatives and the Committee on Finance of the 
        Senate--
                    (A) shall, within 120 days after the date of the 
                enactment of this Act, develop written guidelines to 
                facilitate the useful and timely exchange of 
                information between the Trade Representative and the 
                Congressional Oversight Group convened under this 
                section; and
                    (B) may make such revisions to the guidelines as 
                may be necessary from time to time.
            (2) Content.--The guidelines developed under paragraph (1) 
        shall provide for, among other things--
                    (A) regular, detailed briefings of the 
                Congressional Oversight Group regarding negotiating 
                objectives, including the promotion of certain 
                priorities referred to in section 3(c), and positions 
                and the status of the applicable negotiations, 
                beginning as soon as practicable after the 
                Congressional Oversight Group is convened, with more 
                frequent briefings as trade negotiations enter the 
                final stage;
                    (B) access by members of the Congressional 
                Oversight Group, and staff with proper security 
                clearances, to pertinent documents relating to the 
                negotiations, including classified materials;
                    (C) the closest practicable coordination between 
                the Trade Representative and the Congressional 
                Oversight Group at all critical periods during the 
                negotiations, including at negotiation sites; and
                    (D) after the applicable trade agreement is 
                concluded, consultation regarding ongoing compliance 
                and enforcement of negotiated commitments under the 
                trade agreement.
    (c) Request for Meeting.--Upon the request of a majority of the 
Congressional Oversight Group, the President shall meet with the 
Congressional Oversight Group before initiating negotiations with 
respect to a trade agreement under this Act, or at any other time 
concerning the negotiations.

SEC. 8. ADDITIONAL IMPLEMENTATION AND ENFORCEMENT REQUIREMENTS.

    (a) In General.--At the time the President submits to the Congress 
the final text of a trade agreement pursuant to section 6(a)(1)(C), the 
President shall also submit a plan for implementing and enforcing the 
agreement. The implementation and enforcement plan shall include the 
following:
            (1) Border personnel requirements.--A description of 
        additional personnel required at border entry points, including 
        a list of additional customs and agricultural inspectors.
            (2) Agency staffing requirements.--A description of 
        additional personnel required by Federal agencies responsible 
        for monitoring and implementing the agreement, including 
        personnel required by the Office of the United States Trade 
        Representative, the Department of Commerce, the Department of 
        Agriculture (including additional personnel required to 
        implement sanitary and phytosanitary measures in order to 
        obtain market access for United States exports), the Department 
        of the Treasury, and such other agencies as may be necessary.
            (3) Customs infrastructure requirements.--A description of 
        the additional equipment and facilities needed by U.S. Customs 
        and Border Protection.
            (4) Impact on state and local governments.--A description 
        of the impact the agreement will have on State and local 
        governments as a result of increases in trade.
            (5) Cost analysis.--An analysis of the costs associated 
        with each of the items listed in paragraphs (1) through (4).
    (b) Budget Submission.--The President shall include a request for 
the resources necessary to support the plan described in subsection (a) 
in the first budget that the President submits to the Congress after 
the submission of the plan.

SEC. 9. CONFORMING AMENDMENTS.

    (a) In General.--Title I of the Trade Act of 1974 (19 U.S.C. 2111 
et seq.) is amended as follows:
            (1) Implementing bill.--
                    (A) Section 151(b)(1) (19 U.S.C. 2191(b)(1)) is 
                amended by striking ``or section 2105(a)(1) of the 
                Bipartisan Trade Promotion Authority Act of 2002'' and 
                inserting ``section 2105(a)(1) of the Bipartisan Trade 
                Promotion Authority Act of 2002, or section 6(a)(1) of 
                the NAFTA Modernization Trade Promotion Authority 
                Act''.
                    (B) Section 151(c)(1) (19 U.S.C. 2191(c)(1)) is 
                amended by striking ``or section 2105(a)(1) of the 
                Bipartisan Trade Promotion Authority Act of 2002'' and 
                inserting ``section 2105(a)(1) of the Bipartisan Trade 
                Promotion Authority Act of 2002, or section 6(a)(1) of 
                the NAFTA Modernization Trade Promotion Authority 
                Act''.
            (2) Advice from international trade commission.--Section 
        131 (19 U.S.C. 2151) is amended--
                    (A) in subsection (a)--
                            (i) in paragraph (1), by striking ``or 
                        section 2103(a) or (b) of the Bipartisan Trade 
                        Promotion Authority Act of 2002,'' and 
                        inserting ``, section 2103(a) or (b) of the 
                        Bipartisan Trade Promotion Authority Act of 
                        2002, or section 4(a) of the NAFTA 
                        Modernization Trade Promotion Authority Act,''; 
                        and
                            (ii) in paragraph (2), by inserting ``or 
                        section 4(a) of the NAFTA Modernization Trade 
                        Promotion Authority Act'' after ``Act of 
                        2002''; and
                    (B) in subsection (c), by striking ``or section 
                2103 of the Bipartisan Trade Promotion Authority Act of 
                2002,'' and inserting ``, section 2103 of the 
                Bipartisan Trade Promotion Authority Act of 2002, or 
                section 4(a) of the NAFTA Modernization Trade Promotion 
                Authority Act,''.
            (3) Hearings and advice.--Sections 132, 133(a), and 134(a) 
        (19 U.S.C. 2152, 2153(a), and 2154(a)) are each amended by 
        striking ``or section 2103 of the Bipartisan Trade Promotion 
        Authority Act of 2002,'' each place it appears and inserting 
        ``, section 2103 of the Bipartisan Trade Promotion Authority 
        Act of 2002, or section 4(a) of the NAFTA Modernization Trade 
        Promotion Authority Act,''.
            (4) Prerequisites for offers.--Section 134(b) (19 U.S.C. 
        2154(b)) is amended by inserting ``or section 4(a) of the NAFTA 
        Modernization Trade Promotion Authority Act'' after ``Act of 
        2002''.
            (5) Advice from private and public sectors.--Section 135 
        (19 U.S.C. 2155) is amended--
                    (A) in subsection (a)(1)(A), by striking ``or 
                section 2103 of the Bipartisan Trade Promotion 
                Authority Act of 2002'' and inserting ``, section 2103 
                of the Bipartisan Trade Promotion Authority Act of 
                2002, or section 4(a) of the NAFTA Modernization Trade 
                Promotion Authority Act'';
                    (B) in subsection (e)(1)--
                            (i) in the first sentence, by inserting 
                        ``or section 4(a) of the NAFTA Modernization 
                        Trade Promotion Authority Act'' after ``Act of 
                        2002''; and
                            (ii) by adding at the end the following new 
                        sentence: ``Each report that applies to a trade 
                        agreement entered into under section 4(a) of 
                        the NAFTA Modernization Trade Promotion 
                        Authority Act shall be provided under the first 
                        sentence not later than the date on which the 
                        President notifies the Congress under section 
                        6(a)(1)(A) of that Act of his intention to 
                        enter into that agreement.''; and
                    (C) in subsection (e)(2), by inserting ``or section 
                3 of the NAFTA Modernization Trade Promotion Authority 
                Act of 2002'' after ``Act of 2002''.
            (6) Transmission of agreement to congress.--Section 162(a) 
        (19 U.S.C. 2212(a)) is amended by striking ``or under section 
        2103 of the Bipartisan Trade Promotion Authority Act of 2002'' 
        and inserting ``, under section 2103 of the Bipartisan Trade 
        Promotion Authority Act of 2002, or under section 4(a) of the 
        NAFTA Modernization Trade Promotion Authority Act''.
    (b) Application of Certain Provisions.--For purposes of applying 
sections 125, 126, and 127 of the Trade Act of 1974 (19 U.S.C. 2135, 
2136(a), and 2137)--
            (1) any trade agreement entered into under section 4(a) 
        shall be treated as an agreement entered into under section 101 
        or 102, as appropriate, of the Trade Act of 1974 (19 U.S.C. 
        2111 or 2112); and
            (2) any proclamation or Executive order issued pursuant to 
        a trade agreement entered into under section 4(a) shall be 
        treated as a proclamation or Executive order issued pursuant to 
        a trade agreement entered into under section 102 of the Trade 
        Act of 1974.

SEC. 10. DEFINITIONS.

    In this Act:
            (1) Commission.--The term ``Commission'' means the United 
        States International Trade Commission.
            (2) Core labor standards.--The term ``core labor 
        standards'' means--
                    (A) the right of association;
                    (B) the right to organize and bargain collectively;
                    (C) a prohibition on the use of any form of forced 
                or compulsory labor;
                    (D) a minimum age for the employment of children; 
                and
                    (E) acceptable conditions of work with respect to 
                minimum wages, hours of work, and occupational safety 
                and health.
            (3) ILO.--The term ``ILO'' means the International Labor 
        Organization.
            (4) NAFTA.--The term ``NAFTA'' means the North American 
        Free Trade Agreement.
            (5) NAFTA members.--The term ``NAFTA members'' means the 
        United States, Canada, and Mexico.
            (6) United states person.--The term ``United States 
        person'' means--
                    (A) a United States citizen;
                    (B) a partnership, corporation, or other legal 
                entity organized under the laws of the United States; 
                and
                    (C) a partnership, corporation, or other legal 
                entity that is organized under the laws of a foreign 
                country and is controlled by entities described in 
                subparagraph (B) or United States citizens, or both.
            (7) Uruguay round agreements.--The term ``Uruguay Round 
        Agreements'' has the meaning given that term in section 2(7) of 
        the Uruguay Round Agreements Act (19 U.S.C. 3501(7)).
            (8) World trade organization.--The term ``World Trade 
        Organization'' means the organization established pursuant to 
        the WTO Agreement.
            (9) WTO agreement.--The term ``WTO Agreement'' means the 
        Agreement Establishing the World Trade Organization entered 
        into on April 15, 1994.
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