[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6538 Introduced in House (IH)]

112th CONGRESS
  2d Session
                                H. R. 6538

     To establish trade negotiating objectives with respect to the 
  application of sanitary and phytosanitary measures to agricultural 
                   products, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           September 21, 2012

  Mr. Nunes introduced the following bill; which was referred to the 
                      Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
     To establish trade negotiating objectives with respect to the 
  application of sanitary and phytosanitary measures to agricultural 
                   products, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

                TITLE I--AGRICULTURAL TRADE FACILITATION

SECTION 101. SHORT TITLE.

    This title may be cited as the ``Agricultural Trade Facilitation 
Act''.

SEC. 102. CONGRESSIONAL FINDINGS.

    Congress finds the following:
            (1) Pursuant to article I, section 8, clause 3 of the 
        Constitution of the United States, Congress has the authority 
        to establish negotiating objectives for the United States for 
        agreements related to agricultural trade.
            (2) From 2008 to 2010, the value of United States 
        agricultural exports averaged nearly $107 billion annually. 
        Compared to 1998 to 2000, when the total value of agricultural 
        exports averaged $51,000,000,000 annually, United States 
        agricultural exports have more than doubled in past ten years.
            (3) The Department of Agriculture's Economic Research 
        Service reports that each $1,000,000,000 in United States 
        agricultural exports supports approximately 8,400 jobs. The 
        Economic Research Service further reports that United States 
        agricultural exports supported nearly 830,000 full-time 
        American jobs both on and off-farm in 2009.
            (4) Even as the importance of agricultural exports to the 
        United States economy grows, there are continued reports that 
        non science-based sanitary and phytosanitary measures are 
        restricting trade, acting as non-tariff barriers to trade. The 
        elimination and reduction of unwarranted sanitary and 
        phytosanitary barriers to trade will increase United States 
        agricultural exports and jobs.
            (5) Sanitary and phytosanitary measures are those designed 
        ``to protect human, animal or plant life or health from risks'' 
        arising from additives, contaminants, pests, toxins, diseases, 
        or disease-carrying and causing organisms in foods, beverages, 
        feedstuffs, animals, or plants. Sanitary and phytosanitary 
        measures can take such forms as specific product or processing 
        standards, requirements for products to be produced in disease-
        free areas, quarantine regulations, certification or inspection 
        procedures, sampling and testing requirements, health-related 
        labeling measures, maximum permissible pesticide residue 
        levels, and prohibitions on certain food additives.
            (6) There are currently 37 active disputes involving 
        sanitary and phytosanitary measures being argued within the 
        World Trade Organization (WTO) between Member countries. These 
        cases have been invoked under the WTO Agreement on the 
        Application of Sanitary and Phytosanitary Measures.
            (7) While the Agreement on the Application of Sanitary and 
        Phytosanitary Measures, to which all WTO Member countries are 
        parties, explicitly recognizes the rights of each country to 
        take their own measures, they must be science-based and applied 
        only to the extent necessary to protect human, animal or plant 
        health, and cannot be arbitrary or used to unjustifiably 
        discriminate domestically or between trading partners. Member 
        countries are also encouraged to observe established and 
        recognized international standards. Improper use of measures 
        can create substantial, if not complete, barriers to United 
        States exports when they are disguised barriers to trade, are 
        not supported by science, or are otherwise unwarranted.
            (8) In 2010, a United States interagency group led by the 
        Department of Agriculture's Foreign Agricultural Service, 
        reviewed more than 1,000 notifications from 50 countries as 
        required under the Agreement on the Application of Sanitary and 
        Phytosanitary Measures. The United States Government commented 
        on 173 proposed or in-force sanitary and phytosanitary 
        measures. Nearly one-half of the comments were measures 
        regarding processed products, one-third addressed requirements 
        for live animals and fish (and their products, including dairy 
        products); and almost one-quarter were for measures that 
        introduced new standards or entry requirements for plants, bulk 
        commodities (including those made with biotechnology), and 
        horticultural products.
            (9) Each year, the United States Trade Representative 
        reports that non science-based sanitary and phytosanitary trade 
        barriers continue to threaten, constrain, or block United 
        States agricultural exports.
            (10) A Department of Agriculture study of the impact of 
        foreign technical trade barriers on United States agricultural 
        exports reported the presence of ``questionable technical 
        barriers'' in more than 60 countries affecting trade in more 
        than 300 agricultural products, valued at an estimated $5 
        billion of United States agricultural, forestry, and fishery 
        exports using 1996 data, accounting for about 7 percent of 
        total agricultural exports during that year. Although more 
        recent formal estimates of United States agricultural trade 
        effects are not available, the United States Trade 
        Representative continues to assert: ``[Sanitary and 
        phytosanitary] trade barriers prevent U.S. producers from 
        shipping hundreds of millions of dollars worth of goods, 
        hurting farms and small businesses''.
            (11) The improper use of sanitary and phytosanitary trade 
        barriers to trade can be reduced through achieving and 
        implementing agreements that provide for enhanced 
        harmonization, transparency, equivalency, improved regulatory 
        practices, and more efficient and effective dispute settlement. 
        The elimination and reduction in use of such barriers to trade 
        will strengthen the international trading system by providing 
        certainty, predictability, and fair treatment.
            (12) The Agreement on the Application of Sanitary and 
        Phytosanitary Measures has proven valuable to United States 
        exporters, but experience has exposed certain inadequacies in 
        its rules.
            (13) Accordingly, as the United States prepares for future 
        trade agreements, the Administration must prioritize further 
        strengthening of rules on sanitary and phytosanitary measures.

SEC. 103. TRADE NEGOTIATING OBJECTIVES OF THE UNITED STATES WITH 
              RESPECT TO THE APPLICATION OF SANITARY AND PHYTOSANITARY 
              MEASURES TO AGRICULTURAL PRODUCTS.

    (a) Overall Trade Negotiating Objectives.--The overall trade 
negotiating objective of the United States with respect to the 
application of sanitary and phytosanitary measures to agricultural 
products for trade agreements between the United States and foreign 
countries is to secure more open, equitable, and reciprocal market 
access by strengthening the rules governing the application of sanitary 
and phytosanitary measures to agricultural products.
    (b) Principal Trade Negotiating Objectives.--The principal trade 
negotiating objectives of the United States with respect to the 
application of sanitary and phytosanitary measures to agricultural 
products are the following:
            (1) To strengthen the requirement that the application of 
        measures is based on scientific evidence by requiring parties 
        to the agreement to make available their risk assessments and 
        provide a science-based justification for regulations, in 
        particular in cases in which measures are more restrictive than 
        international standards.
            (2) To encourage parties to the agreement to participate 
        actively in the development of international standards relating 
        to the application of measures and to apply those standards 
        whenever it is appropriate to do so and to require parties to 
        provide a scientific justification whenever they apply a 
        standard that deviates from an established international 
        standard.
            (3) To improve regulatory coherence and increase the use of 
        systems-based approaches, to require parties to the agreement 
        to evaluate on a timely basis the health and safety protection 
        systems of other parties and to allow imports of products if 
        the system of the exporting party meets or exceeds the end-
        product standards of the importing party.
            (4) To require greater transparency in the development and 
        implementation of the measures, to require parties to the 
        agreement to publish proposed measures, including a scientific 
        justification, to provide an opportunity for interested parties 
        to comment on the proposal, and to take into account reasonable 
        concerns, and to require parties to provide significant advance 
        notice before implementing new, non-emergency measures in order 
        to provide ample time for any necessary adjustments by industry 
        in order to come into compliance.
            (5) To require parties to the agreement to carry out risk 
        analysis in a timely manner consistent with the guidelines 
        developed by relevant international organizations, to ensure 
        that risk assessments are based on the most relevant scientific 
        data, to require parties to consider the full range of risk 
        management options and to ensure that the measures are no more 
        trade-restrictive than necessary to meet the intended purpose, 
        and to require effective risk communication.
            (6) To improve rules governing the testing of imported 
        products, to require importing parties to use validated test 
        methods and to provide importers with the right to a 
        confirmatory test, and to provide the right of appeal.
            (7) To promote the harmonization of export certification 
        requirements and to require that parties to the agreement limit 
        information requirements on export documents to that which is 
        necessary to determine whether a product meets sanitary and 
        phytosanitary standards.
            (8) To ensure that new sanitary and phytosanitary trade 
        obligations are fully enforceable through an a more efficient 
        and effective dispute settlement process.

SEC. 104. EFFECTIVE DATE.

    (a) In General.--Except as provided in subsection (b), this title 
takes effect on the date of the enactment of this Act and applies with 
respect to negotiations entered into before, on, or after such date of 
enactment for any trade agreement relating to the application of 
sanitary and phytosanitary measures to agricultural products.
    (b) Exception.--This title does not apply with respect to 
negotiations for any of the following:
            (1) The United States-Colombia Trade Promotion Agreement.
            (2) The United States-Korea Free Trade Agreement.
            (3) The United States-Panama Trade Promotion Agreement.
            (4) The Doha Development Round of the World Trade 
        Organization.

        TITLE II--GENERALIZED SYSTEM OF PREFERENCES IMPROVEMENT

SEC. 201. SHORT TITLE.

    This title may be cited as the ``Generalized System of Preferences 
Improvement Act''.

SEC. 202. DESIGNATION OF BENEFICIARY DEVELOPING COUNTRIES.

    Section 502 of the Trade Act of 1974 (19 U.S.C. 2462) is amended--
            (1) in subsection (b)(2)--
                    (A) in subparagraph (C)--
                            (i) by striking ``(C)'' and inserting 
                        ``(C)(i)''; and
                            (ii) by adding at the end the following:
                    ``(ii) Such country enters into an agreement to 
                afford preferential treatment to the products of a 
                developed country, other than the United States, unless 
                the President determines and certifies to Congress that 
                it is in the national interests of the United States to 
                designate such country as a beneficiary developing 
                country under this title.'';
                    (B) by inserting after subparagraph (H) the 
                following:
                    ``(I) Such country improperly uses sanitary and 
                phytosanitary measures, technical barriers to trade, or 
                other non-tariff trade barriers through a sustained or 
                recurring course of action or inaction, in a manner 
                negatively affecting trade between the country and the 
                United States.''; and
                    (C) in the matter following subparagraph (I) (as 
                added by subparagraph (B) of this paragraph), by 
                striking ``and (H)'' and inserting ``(H), and (I)''; 
                and
            (2) in subsection (c)--
                    (A) in paragraph (6), by striking ``and'' at the 
                end;
                    (B) in paragraph (7), by striking the period at the 
                end and inserting ``; and''; and
                    (C) by adding at the end the following:
            ``(8) whether or not and the extent to which such country, 
        in accordance with its capacity, adopts and follows 
        international sanitary or phytosanitary standards and provides 
        scientific justifications for deviations from such 
        standards.''.

SEC. 203. REVIEW AND REPORT TO CONGRESS.

    Section 504 of the Trade Act of 1974 (19 U.S.C. 2464) is amended--
            (1) in the section heading, by striking ``report'' and 
        inserting ``reports'';
            (2) by striking ``The President'' and inserting ``(a) 
        report on Worker Rights and Child Labor.--The President''; and
            (3) by adding at the end the following:
    ``(b) Report on Market Access.--
            ``(1) In general.--The President shall submit an annual 
        report to the Congress on the status of market access within 
        each covered beneficiary developing country, including findings 
        with respect to whether or not the beneficiary country, in 
        accordance with its capacity, has adopted and followed 
        international sanitary and phytosanitary standards and provides 
        scientific justifications for deviations from such standards. 
        The report shall also include findings as to whether or not 
        each covered beneficiary developing country has improperly used 
        sanitary and phytosanitary measures, technical barriers to 
        trade, and other non-tariff trade barriers.
            ``(2) Covered beneficiary developing country.--In paragraph 
        (1), the term `covered beneficiary developing country ' means a 
        beneficiary developing country that is one of the top 20 
        beneficiary developing countries in terms of dollar value of 
        duty-free imports of articles under this title as identified on 
        an annual basis by the United States International Trade 
        Commission.''.

 TITLE III--UNITED STATES-BRAZIL JOINT COMMISSION ON COMMERCE AND TRADE

SEC. 301. SHORT TITLE.

    This title may be cited as the ``United States-Brazil Joint 
Commission on Commerce and Trade Act''.

SEC. 302. PURPOSE.

    The purpose of this title is to establish the United States-Brazil 
Joint Commission on Commerce and Trade to address bilateral trade 
matters, seek removal of trade barriers, and promote commercial 
opportunities, between the United States and Brazil.

SEC. 303. UNITED STATES-BRAZIL JOINT COMMISSION ON COMMERCE AND TRADE.

    (a) Establishment of United States-Brazil Joint Commission on 
Commerce and Trade.--
            (1) In general.--There is established a commission to be 
        known as the United States-Brazil Joint Commission on Commerce 
        and Trade (in this section referred to as the ``Commission'').
            (2) Purpose.--The purpose of the Commission is to improve 
        the bilateral trade and economic relationship between the 
        United States and Brazil by establishing high level reviews of 
        barriers to trade between the two countries, to promote 
        commercial opportunities between the United States and Brazil, 
        and to facilitate the dialogue necessary to examine the mutual 
        benefits of free trade.
            (3) Membership of commission.--
                    (A) Composition.--The Commission shall be composed 
                of 16 members. The composition of the Commission shall 
                be divided equally between the United States Government 
                and the Republic of Brazil. United States Commissioners 
                shall be appointed as follows:
                            (i) Two persons shall be appointed by the 
                        President pro tempore of the Senate upon the 
                        recommendation of the majority leader of the 
                        Senate, after consultation with the Chairman of 
                        the Committee on Finance and the Chairman of 
                        the Committee on Foreign Relations of the 
                        Senate.
                            (ii) Two persons shall be appointed by the 
                        President pro tempore of the Senate upon the 
                        recommendation of the minority leader of the 
                        Senate, after consultation with the ranking 
                        minority member of the Committee on Finance and 
                        the ranking minority member of the Committee on 
                        Foreign Relations of the Senate.
                            (iii) Two persons shall be appointed by the 
                        Speaker of the House of Representatives, after 
                        consultation with the Chairman of the Committee 
                        on Ways and Means and the Chairman of the 
                        Committee on Foreign Affairs of the House of 
                        Representatives.
                            (iv) Two persons shall be appointed by the 
                        minority leader of the House of 
                        Representatives, after consultation with the 
                        ranking minority member of the Committee on 
                        Ways and Means and the ranking minority member 
                        of the Committee on Foreign Affairs of the 
                        House of Representatives.
                    (B) Qualifications.--Individuals appointed to the 
                Commission shall be individuals who have expertise in 
                international trade matters and United States-Brazil 
                relations.
            (4) Period of appointment; vacancies.--
                    (A) In general.--Members of the Commission shall be 
                appointed to 2-year terms.
                    (B) Staggering of terms.--Each appointing authority 
                referred to under clauses (i) through (iv) of paragraph 
                (3)(A) shall--
                            (i) make the appointments on a staggered 
                        term basis, so that of the members initially 
                        appointed--
                                    (I) 1 of the 2 appointments shall 
                                be for a term expiring on December 31, 
                                2014; and
                                    (II) the other appointment shall be 
                                for a term expiring on December 31, 
                                2015; and
                            (ii) make the appointments not later than 
                        30 days after the date on which each new 
                        Congress convenes.
                    (C) Reappointment.--Members of the Commission may 
                be reappointed for additional terms of service as 
                members of the Commission.
                    (D) Vacancies.--Any vacancy in the Commission shall 
                not affect its powers, but shall be filled in the same 
                manner as the original appointment.
            (5) Chairmen.--The members of the Commission shall select 
        co-Chairmen, one from the United States and one from Brazil.
            (6) Meetings.--The Commission shall meet at the call of the 
        Chairmen.
                    (A) 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.
                    (B) Subsequent meetings.--The Commission shall meet 
                at the call of the Chairmen of the Commission, with the 
                responsibility of chairing proceedings alternating 
                between the United States and Brazil.
                    (C) Quorum.--A majority of the members of the 
                Commission shall constitute a quorum for the 
                transaction of business of the Commission.
            (7) 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.
    (b) Duties.--Not later than December 1 of each year (beginning in 
2014), the Commission shall submit to the United States Congress and 
the National Congress of Brazil a report regarding the status and 
economic impact of trade relations between the United States and 
Brazil. The report shall include a full analysis, along with 
conclusions and recommendations for legislative and administrative 
actions, if any, concerning barriers to trade and the enhancement of 
economic ties.
    (c) Hearings.--
            (1) In general.--The Commission or, at its direction, any 
        panel or member of the Commission, may for the purpose of 
        carrying out the provisions of this section, hold hearings, sit 
        and act at times and places, take testimony, receive evidence, 
        and administer oaths to the extent that the Commission or such 
        panel or member considers advisable.
            (2) Information.--The Commission may secure directly from 
        any Federal department or agency information that the 
        Commission considers necessary to enable the Commission to 
        carry out its duties under this section, unless that 
        information is deemed to contain sensitive national 
        intelligence information or is otherwise subject to rules 
        concerning state secrets.
    (d) Commission Personnel Matters.--
            (1) Compensation of members.--United States Members of the 
        Commission shall be compensated in the same manner provided for 
        the compensation of members of the Trade Deficit Review 
        Commission under subsections (g)(1) and (g)(6) of section 127 
        of the Trade Deficit Review Commission Act (19 U.S.C. 2213 
        note).
            (2) Travel expenses.--Travel expenses of the United States 
        Commissioners shall be allowed in the same manner provided for 
        the allowance of the travel expenses of the Trade Deficit 
        Review Commission under section 127(g)(2) of the Trade Deficit 
        Review Commission Act.
            (3) Staff.--An executive director and other additional 
        personnel for the Commission shall be appointed, compensated, 
        and terminated in the same manner provided for the appointment, 
        compensation, and termination of the executive director and 
        other personnel of the Trade Deficit Review Commission under 
        section 127(g)(3) and section 127(g)(6) of the Trade Deficit 
        Review Commission Act. The executive director and any personnel 
        who are employees of the United States-Brazil Joint Commission 
        on Commerce and Trade shall be employees under section 2105 of 
        title 5, United States Code, for purposes of chapters 63, 81, 
        83, 84, 85, 87, 89, and 90 of that title.
            (4) Detail of government employees.--Federal Government 
        employees may be detailed to the Commission in the same manner 
        provided for the detail of Federal Government employees to the 
        Trade Deficit Review Commission under section 127(g)(4) of the 
        Trade Deficit Review Commission Act.
            (5) Assignment of personnel by the government of brazil.--
        The Commission shall work with the Government of Brazil to 
        secure the appropriate expertise to carry out its work, 
        including through the assignment to the Commission of staff 
        officials selected by the Government of Brazil and the 
        temporary or ongoing employment of Brazilian nationals.
            (6) Foreign travel for official purposes.--Foreign travel 
        for official purposes by Commissioners to and from official 
        proceedings may be authorized by the Chairmen of the 
        Commission. Travel by the staff of the Commission for official 
        purposes may be authorized by the Chairmen of the Commission 
        only when necessary to carry out essential activities that 
        could not otherwise be conducted using alternative means.
            (7) Procurement of temporary and intermittent services.--
        The Chairmen of the Commission may procure temporary and 
        intermittent services for the Commission in the same manner 
        provided for the procurement of temporary and intermittent 
        services for the Trade Deficit Review Commission under section 
        127(g)(5) of the Trade Deficit Review Commission Act.
            (8) Privately funded travel.--The Chairmen of the 
        Commission may authorize privately funded travel by members and 
        staff of the Commission for activities related to the duties of 
        the Commission. The Commission shall disclose to the public, 
        not later than 60 days after the privately funded travel 
        occurs, the source of the funding, together with the itinerary 
        of the activities of members and staff of the Commission 
        participating in the privately funded travel.
    (e) Assistance in Performing Duties.--The President of the United 
States shall provide for the transfer to the Commission of such staff, 
materials, and infrastructure (including leased premises) of Federal 
departments and agencies as the President considers necessary to assist 
the Commission in carrying out its duties.
    (f) Authorization of Appropriations.--
            (1) In general.--There is authorized to be appropriated to 
        the Commission for fiscal year 2013, and for each fiscal year 
        thereafter, such sums as may be necessary to enable the 
        Commission to carry out its duties under this section.
            (2) Availability.--Amounts appropriated to the Commission 
        pursuant to this subsection shall remain available until 
        expended.

               TITLE IV--NEGOTIATIONS WITH EUROPEAN UNION

SEC. 401. SHORT TITLE.

    This title may be referred to as the ``Transatlantic Commerce and 
Trade Enhancement Act''.

SEC. 402. TRADE AGREEMENT AUTHORITY WITH RESPECT TO THE EUROPEAN UNION.

    (a) Authority.--Subject to subsection (b), the President is 
authorized to seek to conduct negotiations with the European Union for 
purposes of entering into a trade agreement with the European Union to 
reduce existing duties or other import restrictions of the European 
Union or the United States that are unduly burdening and restricting 
the foreign trade of the United States.
    (b) Congressional Notification and Consultation.--The exercise of 
the authority of subsection (a) shall be subject to all applicable 
congressional notification and consultation requirements provided for 
under any other provision of law.
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