[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 2409 Introduced in Senate (IS)]
<DOC>
116th CONGRESS
1st Session
S. 2409
To authorize the President to take certain actions relating to
reciprocal trade, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
July 31, 2019
Mr. Graham (for himself and Mr. Manchin) introduced the following bill;
which was read twice and referred to the Committee on Finance
_______________________________________________________________________
A BILL
To authorize the President to take certain actions relating to
reciprocal trade, 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 ``United States Reciprocal Trade
Act''.
SEC. 2. FINDINGS.
Congress finds the following:
(1) The United States maintains an open market for goods,
with relatively low tariffs, and has long encouraged trading
partners, both bilaterally and in multilateral fora, to
liberalize their markets.
(2) The United States is the largest importer of goods in
the world.
(3) Trading partners of the United States in many instances
impose significantly higher tariffs on United States goods than
the United States imposes on the same or similar goods imported
from those same countries.
(4) Trading partners of the United States in many instances
impose significant nontariff barriers that greatly undermine
the value of negotiated tariff concessions.
(5) The lack of reciprocity in tariff levels and
disproportionate use of nontariff barriers by trading partners
of the United States facilitates foreign imports, discourages
United States exports, and puts producers, farmers, and workers
in the United States at a competitive disadvantage.
(6) The lack of reciprocity in tariff levels and nontariff
barriers contributes to the large and growing United States
trade deficit in goods, which is a drag on economic growth and
undermines economic prosperity.
(7) To date a number of trading partners of the United
States have been unwilling, including in multilateral
negotiations, to reduce tariffs and eliminate nontariff
barriers applied to United States exports.
(8) The United States should seek action by trading
partners of the United States to lower tariffs and eliminate
nontariff barriers, to promote efficiency in those markets and
enhance opportunities for producers, farmers, and workers in
the United States.
(9) The President should have a wide array of tools to open
the markets of trading partners of the United States and
encourage participation in negotiations to liberalize trade in
goods on a fair and reciprocal basis, including the authority
to adjust tariff rates to reciprocal levels.
SEC. 3. AUTHORITY TO TAKE CERTAIN ACTIONS RELATING TO RECIPROCAL TRADE.
(a) In General.--The President may take one or more of the actions
specified in subsection (b) if the President determines that--
(1) the rate of duty imposed by a foreign country with
respect to a particular good, when imported from the United
States, is significantly higher than the rate of duty imposed
by the United States with respect to that good, when imported
from that country; or
(2) the nontariff barriers applied by a foreign country
with respect to a particular good, when imported from the
United States, impose significantly higher burdens, alone or in
combination with any tariffs imposed by that country on that
good, than the burdens of the nontariff barriers applied by the
United States with respect to that good, alone or in
combination with any tariffs imposed by the United States on
that good, when imported from that country.
(b) Actions Specified.--The actions specified in this subsection
are the following:
(1) To negotiate and seek to enter into an agreement with
the foreign country that commits the country to reduce the rate
of duty or reduce or eliminate nontariff barriers with respect
to the good that is the subject of the determination under
subsection (a).
(2) To impose a rate of duty on imports of the good that is
equal to--
(A) in the case of a determination described in
subsection (a)(1), the rate of duty imposed by the
foreign country with respect to the good; or
(B) in the case of a determination described in
subsection (a)(2), the effective rate of duty of the
nontariff barriers applied by the foreign country with
respect to the good, alone or in combination with any
tariffs imposed by that country on that good.
(c) Factors.--In taking an action specified in subsection (b), the
President shall consider the following factors:
(1) The tariff classification of the good by the United
States and the tariff classification of the good by the foreign
country.
(2) The rate of duty applied by the United States with
respect to the good and the rate of duty applied by the foreign
country with respect to the good.
(3) The physical characteristics of the good.
(4) The end uses and existence of a competitive
relationship between the good--
(A) as exported from the United States to the
foreign country; and
(B) as imported from the foreign country to the
United States.
(5) The level of exports of the good by the foreign country
to the United States and to other countries.
(6) In the case of a determination described in subsection
(a)(1), the extent to which the rate of duty applied by the
foreign country with respect to the good is impeding or
distorting trade.
(7) In the case of a determination described in subsection
(a)(2)--
(A) the extent of the nontariff barriers applied by
the foreign country with respect to the good and the
extent of the nontariff barriers applied by the United
States with respect to the good;
(B) the extent to which the nontariff barriers
applied by the foreign country with respect to the
good, alone or in combination with any tariffs imposed
by that country on that good, are impeding or
distorting trade;
(C) the identified purpose of the nontariff
barriers applied by the foreign country with respect to
the good, if any, and the extent to which the nontariff
barriers are more restrictive than necessary to meet
that purpose; and
(D) the degree of transparency of the process by
which the foreign country adopted the nontariff
barriers.
(8) Such other factors as the President determines
appropriate.
(d) Role of USTR.--In the case of a determination described in
subsection (a)(2), the United States Trade Representative, in
consultation with the Secretary of the Treasury, the Secretary of
Commerce, and the heads of other relevant Federal agencies, shall
advise the President in determining the effective rate of duty imposed
by the nontariff barriers applied by a foreign country with respect to
a good, alone or in combination with any tariffs imposed by that
country on that good.
(e) Lower Rate of Duty.--The President may impose a rate of duty on
imports of a good from a foreign country that is lower than the rate of
duty described in subsection (b)(2)(A) or lower than the effective rate
of duty described in subsection (b)(2)(B), as the case may be, if the
President determines that application of such lower rate of duty is
necessary and appropriate.
(f) Higher Rate of Duty.--If the President imposes a rate of duty
on imports of a good from a foreign country under subsection (b)(2) and
the country further increases its rate of duty on imports of the good
from the United States, the President may further increase the rate of
duty on imports of the good from the country to a rate that is equal to
the rate of duty applied by that country.
(g) Termination.--The President shall terminate the imposition of
any increase in the rate of duty on imports of a good from a foreign
country under subsection (b)(2) effective on the date on which the
President determines that--
(1) the foreign country is no longer--
(A) imposing a rate of duty described in subsection
(a)(1) with respect to the good; or
(B) applying nontariff barriers described in
subsection (a)(2) with respect to the good; or
(2) continued imposition of the increased rate of duty on
imports of the good from the foreign country is not in the
economic or public interest of the United States.
SEC. 4. NOTICE, CONSULTATION, AND REPORT.
(a) Negotiations and Agreement.--Before taking any action under
section 3(b)(1), the President shall provide notice to and consult with
the Committee on Finance of the Senate and the Committee on Ways and
Means of the House of Representatives regarding the proposed action.
(b) Imposition of Duty.--Before taking any action under section
3(b)(2), the President shall--
(1) not less than 45 days before the date on which
imposition of an increased rate of duty on imports of a good
from a foreign country is to take effect, publish notice in the
Federal Register of, and allow for public comment on, the
proposed imposition and level of such increased rate of duty;
and
(2) seek advice regarding the proposed action from the
advisory committees established under section 135 of the Trade
Act of 1974 (19 U.S.C. 2155).
(c) Additional Notice.--The President shall promptly publish in the
Federal Register notice of any action taken pursuant to subsection (e),
(f), or (g) of section 3.
(d) Report.--
(1) In general.--Before entering into an agreement with a
foreign country under section 3(b)(1), the United States Trade
Representative shall submit to the appropriate congressional
committees and leadership a report that describes--
(A) the implementation of the agreement, including
how it is consistent with and does not materially
differ from or otherwise affect Federal or State laws;
(B) the impact of the agreement on the
competitiveness of businesses in the United States; and
(C) the impact of the agreement on consumers in the
United States.
(2) Appropriate congressional committees and leadership.--
In this subsection, the term ``appropriate congressional
committees and leadership'' means--
(A) the Committee on Ways and Means of the House of
Representatives and the Committee on Finance of the
Senate; and
(B) the Speaker of the House of Representatives,
the minority leader of the House of Representatives,
the majority leader of the Senate, and the minority
leader of the Senate.
SEC. 5. CONGRESSIONAL DISAPPROVAL OF PRESIDENTIAL IMPOSITION OF RATES
OF DUTY ON IMPORTS OF GOODS FROM FOREIGN COUNTRIES.
(a) In General.--An action taken by the President under section
3(b)(2) to impose a rate of duty on imports of a good from a foreign
country shall cease to have force and effect upon the enactment of a
disapproval resolution relating to that action.
(b) Disapproval Resolution.--
(1) Disapproval resolution.--For purposes of this section,
the term ``disapproval resolution'' means only a joint
resolution of either House of Congress the matter after the
resolving clause of which is as follows: ``That Congress
disapproves the action taken under section 3(b)(2) of the
United States Reciprocal Trade Act with respect to the
imposition of a rate of duty on imports of __ from __ under
such section 3(b)(2).'', the first blank space being filled
with a description of the good with respect to which the duty
is imposed under section 3(b)(2) and the second blank being
filled with the name of the foreign country from which the good
is imported into the United States.
(2) Consideration.--
(A) Introduction.--All disapproval resolutions
introduced in the House of Representatives shall be
referred to the Committee on Ways and Means and all
disapproval resolutions introduced in the Senate shall
be referred to the Committee on Finance.
(B) Amendments prohibited; motions to suspend
application of this subparagraph prohibited.--No
amendment to a disapproval resolution shall be in order
in either the House of Representatives or the Senate,
and no motion to suspend the application of this
subparagraph shall be in order in either House nor
shall it be in order in either House for the Presiding
Officer to entertain a request to suspend the
application of this subparagraph by unanimous consent.
(C) Floor consideration in house of
representatives.--
(i) Reporting and discharge.--If the
Committee on Ways and Means has not reported a
disapproval resolution within 10 legislative
days after the date of referral, that committee
shall be discharged from further consideration
thereof.
(ii) Proceeding to consideration.--
Beginning on the third legislative day after
the Committee on Ways and Means reports a
disapproval resolution to the House or has been
discharged from further consideration thereof,
it shall be in order to move to proceed to
consider the disapproval resolution in the
House. All points of order against the motion
are waived. Such a motion shall not be in order
after the House has disposed of a motion to
proceed on the disapproval resolution. The
previous question shall be considered as
ordered on the motion to its adoption without
intervening motion. The motion shall not be
debatable. A motion to reconsider the vote by
which the motion is disposed of shall not be in
order.
(iii) Consideration.--The disapproval
resolution shall be considered as read. All
points of order against the disapproval
resolution and against its consideration are
waived. The previous question shall be
considered as ordered on the disapproval
resolution to final passage without intervening
motion except two hours of debate equally
divided and controlled by the sponsor of the
disapproval resolution (or a designee) and an
opponent. A motion to reconsider the vote on
passage of the disapproval resolution shall not
be in order.
(D) Floor consideration in the senate.--
(i) Reporting and discharge.--If the
Committee on Finance has not reported a
disapproval resolution within 10 session days
after the date of referral of such resolution,
that committee shall be discharged from further
consideration of such resolution and the
disapproval resolution shall be placed on the
appropriate calendar.
(ii) Proceeding to consideration.--
Notwithstanding Rule XXII of the Standing Rules
of the Senate, it is in order at any time after
the Committee on Finance reports a disapproval
resolution to the Senate or has been discharged
from its consideration (even though a previous
motion to the same effect has been disagreed
to) to move to proceed to the consideration of
the disapproval resolution, and all points of
order against the disapproval resolution (and
against consideration of the disapproval
resolution) are waived. The motion to proceed
is not debatable. The motion is not subject to
a motion to postpone. A motion to reconsider
the vote by which the motion is agreed to or
disagreed to shall not be in order. If a motion
to proceed to the consideration of the
disapproval resolution is agreed to, the
disapproval resolution shall remain the
unfinished business until disposed of.
(iii) Consideration.--Debate on a
disapproval resolution, and on all debatable
motions and appeals in connection therewith,
shall be limited to not more than 10 hours,
which shall be divided equally between the
majority and minority leaders or their
designees. A motion to further limit debate is
in order and not debatable. An amendment to, or
a motion to postpone, or a motion to proceed to
the consideration of other business, or a
motion to recommit the disapproval resolution
is not in order.
(iv) Vote on passage.--The vote on passage
shall occur immediately following the
conclusion of the debate on the disapproval
resolution and a single quorum call at the
conclusion of the debate, if requested in
accordance with the rules of the Senate.
(v) Rulings of the chair on procedure.--
Appeals from the decisions of the Chair
relating to the application of the rules of the
Senate, as the case may be, to the procedure
relating to a disapproval resolution shall be
decided without debate.
(vi) Consideration of veto messages.--
Debate in the Senate of any veto message with
respect to a disapproval resolution, including
all debatable motions and appeals in connection
with such disapproval resolution, shall be
limited to 10 hours, to be equally divided
between, and controlled by, the majority leader
and the minority leader or their designees.
(E) Majority required for adoption.--A disapproval
resolution shall require an affirmative vote of a
majority of the Members, duly chosen and sworn, for
adoption.
(3) Rules relating to senate and house of
representatives.--
(A) Coordination with action by other house.--If,
before the passage by one House of a disapproval
resolution of that House, that House receives a
disapproval resolution from the other House, then the
following procedures shall apply:
(i) The disapproval resolution of the other
House shall not be referred to a committee.
(ii) With respect to a disapproval
resolution of the House receiving the
legislation--
(I) the procedure in that House
shall be the same as if no disapproval
resolution had been received from the
other House; but
(II) the vote on passage shall be
on the disapproval resolution of the
other House.
(B) Treatment of a bill of other house.--If one
House fails to introduce a disapproval resolution under
this section, the disapproval resolution of the other
House shall be entitled to expedited floor procedures
under this section.
(C) Treatment of companion measures.--If, following
passage of a disapproval resolution in the Senate, the
Senate then receives a companion measure from the House
of Representatives, the companion measure shall not be
debatable.
(c) Rulemaking Power.--This section is enacted by Congress--
(1) as an exercise of the rulemaking power of the Senate
and the House of Representatives, respectively, and as such is
deemed a part of the rules of each House, respectively, but
applicable only with respect to the procedures to be followed
in that House in the case of disapproval resolutions and such
procedures supersede other rules only to the extent that they
are inconsistent with those rules; and
(2) with full recognition of the constitutional right of
either House to change the rules (so far as relating to the
procedure of that House) at any time, in the same manner, and
to the same extent as any other rule of that House.
SEC. 6. SUNSET OF PRESIDENTIAL IMPOSITION OF RATES OF DUTY ON IMPORTS
OF GOODS FROM FOREIGN COUNTRIES.
(a) In General.--The authority of the President to take an action
under section 3(b)(2) to impose a rate of duty on imports of a good
from a foreign country--
(1) shall be effective for the period ending on the date
that is three years after the date of the enactment of this
Act; and
(2) shall be extended for an additional period of three
years if--
(A) the President requests such extension under
subsection (b); and
(B) a disapproval resolution is not enacted into
law as provided for under subsection (c).
(b) Report to Congress.--If the President determines that the
authority of the President to take an action under section 3(b)(2) to
impose a rate of duty on imports of a good from a foreign country
should be extended for the additional period described in subsection
(a)(2), the President shall submit to Congress, not later than the date
that is 90 days before the end of the period described in subsection
(a)(1), a written report that contains a request for such extension,
together with a description of all actions taken under section 3(b)(2).
(c) Disapproval Resolution.--
(1) Disapproval resolution.--For purposes of this section,
the term ``disapproval resolution'' means only a joint
resolution of either House of Congress the matter after the
resolving clause of which is as follows: ``That Congress
disapproves the request of the President for extension under
section 6(a)(2)(A) of the United States Reciprocal Trade Act of
the authority of the President to take an action under section
3(b)(2) of such Act to impose a rate of duty on imports of a
good from a foreign country after the period ending on the date
that is three years after the date of the enactment of such
Act.''.
(2) Consideration.--
(A) In general.--Except as provided in subparagraph
(B), the provisions of paragraphs (2) and (3) of
section 5(b) apply to consideration of a disapproval
resolution.
(B) Limitation on consideration.--It is not in
order for either House of Congress to consider a
disapproval resolution after the date that is three
years after the date of the enactment of this Act.
(3) Rulemaking power.--This subsection is enacted by
Congress--
(A) as an exercise of the rulemaking power of the
Senate and the House of Representatives, respectively,
and as such is deemed a part of the rules of each
House, respectively, but applicable only with respect
to the procedures to be followed in that House in the
case of disapproval resolutions and such procedures
supersede other rules only to the extent that they are
inconsistent with those rules; and
(B) with full recognition of the constitutional
right of either House to change the rules (so far as
relating to the procedure of that House) at any time,
in the same manner, and to the same extent as any other
rule of that House.
(d) Rules of Construction.--
(1) In general.--An action under section 3(b)(2) to impose
a rate of duty on imports of a good from a foreign country that
is taken before the end of the period described in subsection
(a)(1) or the end of the period described in subsection (a)(2)
shall remain in effect after the end of such respective period.
(2) Additional authorities.--The President may exercise the
authorities of subsections (e), (f), and (g) of section 3 with
respect to an action described in paragraph (1) after the end
of the period described in such paragraph that is applicable to
such action.
SEC. 7. DEFINITIONS.
In this Act:
(1) Nontariff barrier.--The term ``nontariff barrier''
includes any government-imposed measure or policy, other than a
customs duty, that restricts, prevents, or impedes
international trade in goods, including import policies,
sanitary and phytosanitary measures, technical barriers to
trade, government procurement, export subsidies, lack of
intellectual property protection, digital trade barriers, and
government-tolerated anticompetitive conduct of state-owned or
private firms.
(2) Rate of duty.--The term ``rate of duty'' means the rate
of customs duty applied on imports of a good, but does not
include an antidumping or countervailing duty or a duty applied
under a preferential tariff arrangement.
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