[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[S. 1801 Introduced in Senate (IS)]

113th CONGRESS
  1st Session
                                S. 1801

To amend the Tariff Act of 1930 to include in the calculation of normal 
  value the cost of paying adequate wages and maintaining sustainable 
              production methods, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           December 11, 2013

  Mr. Merkley (for himself and Ms. Baldwin) introduced the following 
  bill; which was read twice and referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
To amend the Tariff Act of 1930 to include in the calculation of normal 
  value the cost of paying adequate wages and maintaining sustainable 
              production methods, and for other purposes.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Level the Playing Field in Global 
Trade Act of 2013''.

SEC. 2. FINDINGS; SENSE OF CONGRESS.

    (a) Findings.--Congress makes the following findings:
            (1) Working families in the United States and around the 
        world have not enjoyed many of the benefits of increased global 
        trade.
            (2) While the global economy grew at an average rate of 3.3 
        percent per year between 1995 and 2007, annual wage growth 
        remained at less than 3 percent.
            (3) Between 1989 and 2010, hourly productivity in the 
        United States grew more than 3 times as fast as wages, and 
        nearly 4,000,000 manufacturing jobs disappeared in the United 
        States between 1998 and 2013.
            (4) The lowest 20 percent of wage earners in the United 
        States have seen average hourly wages decline by 3.9 percent, 
        and the next lowest 20 percent saw their earnings fall by 4.3 
        percent, while earnings for those in the top 20 percent 
        increased by nearly 30 percent.
            (5) In 2010, there were approximately 942,000,000 working 
        poor living with their families on less than $2.00 per person 
        per day.
            (6) Global biodiversity health declined 28 percent from 
        1970 to 2008.
            (7) The World Health Organization attributes more than 
        500,000 premature deaths annually to urban air pollution in 
        Asia alone.
            (8) An estimated 160,000,000 people suffer from work-
        related diseases, and there are an estimated 270,000,000 fatal 
        and non-fatal work-related accidents each year.
    (b) Sense of Congress.--It is the sense of Congress that--
            (1) the antidumping and countervailing duty laws of the 
        United States under title VII of the Tariff Act of 1930 (19 
        U.S.C. 1671 et seq.) have provided targeted, effective relief 
        against unfair trade practices and must be protected and 
        enhanced; and
            (2) the failure to include within antidumping duty 
        calculations the real costs of inadequate wages, insufficient 
        workplace safety conditions, and insufficient environmental 
        controls--
                    (A) has a substantial negative effect on United 
                States manufacturing and the United States economy; and
                    (B) fails to support efforts to improve conditions 
                for working families and the environment in the United 
                States and around the world.

SEC. 3. PURPOSES.

    The purposes of this Act are--
            (1) to ensure that goods imported into the United States 
        fully reflect the real costs of paying an adequate living wage, 
        upholding workplace safety standards, and maintaining basic 
        environmental protections; and
            (2) to provide a streamlined method for entities that meet 
        those standards to satisfy the requirements of the amendments 
        made by this Act.

SEC. 4. ADJUSTMENT OF NORMAL VALUE TO INCLUDE THE COST OF PAYING 
              ADEQUATE WAGES AND MAINTAINING SUSTAINABLE PRODUCTION 
              METHODS.

    (a) In General.--Section 773(a) of the Tariff Act of 1930 (19 
U.S.C. 1677b(a)) is amended--
            (1) by redesignating paragraph (8) as paragraph (9); and
            (2) by inserting after paragraph (7) the following:
            ``(8) Adjustments for costs of providing adequate wages and 
        using sustainable production methods.--
                    ``(A) Increase.--Except as otherwise provided in 
                this paragraph, the price described in paragraph (1)(B) 
                shall also be increased by the difference, if any, 
                between--
                            ``(i) the actual cost of producing the 
                        subject merchandise; and
                            ``(ii) the estimated cost of producing the 
                        subject merchandise if the producer paid its 
                        employees adequate wages and maintained 
                        sustainable production methods.
                    ``(B) Credits for compliance.--At the request of an 
                exporter or producer, the administering authority shall 
                reduce the amount of the increase under subparagraph 
                (A) with respect to subject merchandise of that 
                exporter or producer by an amount the administering 
                authority determines reflects the extent to which the 
                subject merchandise was produced under conditions under 
                which all employees receive adequate wages and 
                sustainable production methods are maintained. The 
                amount by which the increase under subparagraph (A) to 
                the price under paragraph (1)(B) is reduced under this 
                subparagraph shall be referred to as a `credit'.
                    ``(C) Precertification.--
                            ``(i) Exporter- or producer-specific 
                        precertification.--
                                    ``(I) Requests.--An exporter or 
                                producer seeking to import merchandise 
                                into the United States may request the 
                                administering authority to issue a 
                                precertification that merchandise of 
                                the exporter or producer imported into 
                                the United States from a specific 
                                country is eligible for credits under 
                                subparagraph (B) before an 
                                investigation is initiated under 
                                subtitle B with respect to the 
                                merchandise.
                                    ``(II) Standard for 
                                precertification.--The administering 
                                authority shall issue to an exporter or 
                                producer that requests a 
                                precertification under subclause (I) a 
                                precertification that covers all 
                                merchandise imported into the United 
                                States by the exporter or producer from 
                                a specific country if the exporter or 
                                producer demonstrates to the 
                                satisfaction of the administering 
                                authority that all such merchandise, 
                                including significant components or 
                                ingredients of the merchandise, was or 
                                will be produced under conditions under 
                                which all employees receive adequate 
                                wages and sustainable production 
                                methods are maintained.
                                    ``(III) Effective period.--A 
                                precertification issued under this 
                                clause shall remain in effect for such 
                                period as the administrating authority 
                                determines appropriate, but not longer 
                                than 5 years.
                            ``(ii) Country-wide precertification.--The 
                        administering authority may issue a 
                        precertification for all merchandise imported 
                        from a country if the government of that 
                        country maintains and enforces laws requiring 
                        all producers of such merchandise in that 
                        country to pay its employees adequate wages and 
                        to maintain sustainable production methods.
                            ``(iii) Safe harbor.--
                                    ``(I) In general.--If the 
                                administering authority has issued a 
                                precertification under clause (i) or 
                                (ii), merchandise to which the 
                                precertification applies shall not be 
                                subject to an antidumping duty solely 
                                because a petition filed under section 
                                732(b)(1) with respect to the 
                                merchandise alleges that the 
                                merchandise was not produced under 
                                conditions under which all employees 
                                receive adequate wages and sustainable 
                                production methods are maintained.
                                    ``(II) Challenging 
                                precertification.--An interested party 
                                described in subparagraph (C), (D), 
                                (E), (F), or (G) of section 771(9) that 
                                files a petition under section 
                                732(b)(1) with respect to the 
                                merchandise covered by a 
                                precertification issued under clause 
                                (i) for a producer or exporter or under 
                                clause (ii) for a country bears the 
                                burden of proving that the merchandise 
                                was not produced under conditions under 
                                which all employees receive adequate 
                                wages and sustainable production 
                                methods are maintained.
                            ``(iv) Demonstration of injury.--
                                    ``(I) Presumption.--Except as 
                                provided in subclause (II), an 
                                interested party described in 
                                subparagraph (C), (D), (E), (F), or (G) 
                                of section 771(9) that files a petition 
                                under section 732(b)(1) with respect to 
                                merchandise that relies on calculations 
                                of normal value made under this 
                                paragraph shall be presumed to 
                                demonstrate that the party is 
                                materially injured or threatened with 
                                material injury by reason of imports of 
                                the merchandise.
                                    ``(II) Exceptions.--An interested 
                                party described in subparagraph (C), 
                                (D), (E), (F), or (G) of section 771(9) 
                                that files a petition under section 
                                732(b)(1) with respect to merchandise 
                                that relies on calculations of normal 
                                value made under this paragraph shall 
                                not be presumed to demonstrate that the 
                                party is materially injured or 
                                threatened with material injury by 
                                reason of imports of the merchandise 
                                if--
                                            ``(aa) the country from 
                                        which the merchandise is 
                                        exported is covered by a 
                                        precertification issued under 
                                        clause (ii); or
                                            ``(bb) the estimated cost 
                                        of producing the merchandise 
                                        under subparagraph (A)(ii) is 
                                        equal to or greater than the 
                                        cost of producing the 
                                        merchandise in the country in 
                                        which the interested party is 
                                        located.
                            ``(v) Use of third-party standards.--
                                    ``(I) In general.--The 
                                administering authority, the Secretary 
                                of Labor, and the Administrator of the 
                                Environmental Protection Agency may 
                                jointly establish procedures pursuant 
                                to which obtaining certification from 
                                an organization described in subclause 
                                (II) may demonstrate the eligibility of 
                                an exporter or producer for a 
                                precertification under clause (i) or 
                                the eligibility of a country for a 
                                precertification under clause (ii).
                                    ``(II) Organization described.--An 
                                organization described in this 
                                subclause is an independent third-party 
                                organization that sets standards with 
                                respect to adequate wages and 
                                sustainable production methods.
                    ``(D) Guidance on compliance.--Not later than one 
                year after the date of the enactment of the Level the 
                Playing Field in Global Trade Act of 2013, the 
                administering authority shall publish in the Federal 
                Register guidance with respect to how persons producing 
                merchandise for exportation to the United States or 
                seeking to import such merchandise into the United 
                States may obtain credits and precertifications under 
                subparagraphs (B) and (C).
                    ``(E) Definitions.--In this paragraph:
                            ``(i) Adequate wage.--
                                    ``(I) In general.--The term 
                                `adequate wage'--
                                            ``(aa) means compensation 
                                        for a regular work week that is 
                                        sufficient to meet the basic 
                                        needs of the employee and to 
                                        provide the employee with some 
                                        discretionary income; and
                                            ``(bb) includes--

                                                    ``(AA) at a 
                                                minimum, the payment of 
                                                the higher of the 
                                                minimum wage or the 
                                                appropriate prevailing 
                                                wage, compliance with 
                                                all legal requirements 
                                                relating to wages 
                                                (including freedom of 
                                                association relating to 
                                                the bargaining relating 
                                                to wages and related 
                                                matters), and the 
                                                provision of such 
                                                benefits as are 
                                                required by law or 
                                                contract; and

                                                    ``(BB) such other 
                                                elements as the 
                                                administering authority 
                                                considers appropriate.

                                    ``(II) Guidance on 
                                interpretation.--
                                            ``(aa) In general.--Not 
                                        later than one year after the 
                                        date of the enactment of the 
                                        Level the Playing Field in 
                                        Global Trade Act of 2013, the 
                                        administering authority shall 
                                        publish in the Federal Register 
                                        guidance, developed jointly 
                                        with the Secretary of Labor, 
                                        with respect to the 
                                        interpretation of `adequate 
                                        wage'.
                                            ``(bb) Use of third-party 
                                        standards.--In developing 
                                        guidance under item (aa), the 
                                        administering authority and the 
                                        Secretary may consider 
                                        independent third-party 
                                        standards, including, as 
                                        appropriate, standards on an 
                                        industry-by-industry or 
                                        country-by-country basis.
                            ``(ii) Sustainable production methods.--
                                    ``(I) In general.--The term 
                                `sustainable production methods' means 
                                the application of technologies and 
                                methods that are necessary to provide 
                                for--
                                            ``(aa) workplace safety, 
                                        toxic waste control, and the 
                                        conservation of energy and 
                                        natural resources, based on 
                                        local standards and conditions; 
                                        and
                                            ``(bb) such other relevant 
                                        standards as the administering 
                                        authority considers 
                                        appropriate.
                                    ``(II) Guidance on 
                                interpretation.--
                                            ``(aa) In general.--Not 
                                        later than one year after the 
                                        date of the enactment of the 
                                        Level the Playing Field in 
                                        Global Trade Act of 2013, the 
                                        administering authority shall 
                                        publish in the Federal Register 
                                        guidance, developed jointly 
                                        with the Administrator of the 
                                        Environmental Protection Agency 
                                        and the Secretary of Labor, 
                                        with respect to the 
                                        interpretation of `sustainable 
                                        production methods'.
                                            ``(bb) Use of third-party 
                                        standards.--In developing 
                                        guidance under item (aa), the 
                                        administering authority and the 
                                        Administrator may consider 
                                        independent third-party 
                                        standards, including, as 
                                        appropriate, standards on an 
                                        industry-by-industry or 
                                        country-by-country basis.''.
    (b) Effective Date.--The amendments made by subsection (a) shall 
apply with respect to merchandise imported into the United States--
            (1) on and after the date that is 2 years after the date of 
        the enactment of this Act from--
                    (A) any country with which the United States has a 
                free trade agreement in effect;
                    (B) any country that is a member of the World Trade 
                Organization; or
                    (C) Canada or Mexico, pursuant to article 1902 of 
                the North American Free Trade Agreement and section 408 
                of the North American Free Trade Agreement 
                Implementation Act (19 U.S.C. 3438); and
            (2) on or after the date that is one year after the date of 
        the enactment of this Act from any country other than a country 
        described in paragraph (1).
                                 <all>