[Congressional Record Volume 142, Number 103 (Friday, July 12, 1996)]
[Senate]
[Pages S7816-S7825]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS
By Mr. LAUTENBERG:
S. 1950. A bill to amend the Federal Water Pollution Control Act to
improve the quality of coastal recreation waters, and for other
purposes; to the Committee on Environment and Public Works.
THE BEACHES ENVIRONMENT ASSESSMENT, CLOSURE AND HEALTH ACT OF 1996
Mr. LAUTENBERG. Mr. President, I rise to introduce the Beaches
Environmental Assessment, Closure, and Health [BEACH] Act of 1996.
Mr. President, coastal tourism generates billions of dollars every
year for local communities nationwide. Moreover, our coastal areas
provide immeasurable benefits for millions of Americans who want to
build sand castles, cool off in the water, take a walk with that
special someone, or just relax. New Jersey's tourism sector is the
second largest revenue-producing industry in the State. Without a
doubt, the lure of my State's beaches generates most of this revenue--
over $7 billion annually.
Mr. President, alarmingly, this heavily used natural resource can
actually pose a threat to human health if it is not properly managed.
Studies conducted during the past two decades show a definite
relationship between the amount of indicator bacteria in coastal waters
and the incidence of swimming-associated illnesses.
Viruses are believed to be the major cause of swimming-associated
diseases--gastroenteritis and hepatitis are the most common ones
worldwide. And because an individual afflicted with these diseases is
contagious to others in his or her household, the risk of sewage-borne
illness does not end with the bather. Additional diseases that can be
contracted by swimmers include an infection caused by the toxigenic
bacteria E. coli--the bacteria found in Jack-in-the-Box hamburgers
which caused an outbreak of illnesses a few years ago.
Yet many current, EPA approved techniques to measure marine water
quality appear to underestimate the true number of viable pathogens
that are entering the marine environment. Existing EPA guidelines allow
States to decide whether their beach waters are safe for swimming based
on monthly averages. Waters may appear safe in the long term, but
short-term violations of the public health standard go unrecognized.
[[Page S7817]]
The existing EPA guidelines are not useful for decisionmakers, who
need to decide whether they should allow people to swim at the beach
tomorrow or during the coming weekend. Using monthly water quality
averages to determine if the beach is safe for swimming is like taking
a patient's temperature average over a week to see if the patient is
sick. The patient's average temperature could be just about normal. But
in the meantime, the patient could die. EPA must develop new standards
because existing EPA guidelines simply fall short.
While some States use these inadequate EPA guidelines, others have no
programs for regularly monitoring their beachwater for swimmer safety.
In a report released today, Testing the Waters: Who Knows What You're
Getting Into, the Natural Resources Defense Council [NRDC] found that
only five States--New Jersey, Connecticut, Delaware, Illinois, and
Indiana--comprehensively monitor their beaches, and a mere five States
consistently close beaches every time bacteria water quality standards
are violated. Additionally, NRDC found that a high-bacteria level can
cause a beach closure in one State while in another State people may be
allowed to swim in the water despite equal health risks. This
discrepancy among coastal States threatens public health.
The NRDC report also found that high levels of bacteria in coastal
waters--primarily from raw human sewage--are responsible for the
overwhelming majority of beach closures and advisories in the United
States. In 1995, U.S. ocean, bay, and Great Lakes beaches were closed,
or advisories were issued against swimming, on more than 3,522
occasions.
New Jersey has been aggressive when it comes to protecting public
health at the beach. New Jersey is the only State to have a mandatory
beach protection program that includes a bacteria standard, a
monitoring program, and mandatory beach closure requirements when the
bacteria standard is exceeded. The program is designed to address water
quality from both a health and an environmental perspective. Beaches
are closed when bacteria levels exceed the standard regardless of the
pollution source.
Ironically, New Jersey suffers because it does more to protect public
health. In some years, annual losses from beach closures in New Jersey
have ranged from $800 million to $1 billion.
The bill that I am introducing today will address the uneven coastal
commitment to protect beach goers by establishing uniform testing and
monitoring procedures for pathogens and floatables in marine recreation
waters. This bill also requires EPA to establish a nationwide public
health standard for determining when States should notify the public of
health risks due to pathogen contaminated waters.
This bill requires the EPA to establish procedures to monitor coastal
waters to detect short-term increases in pathogenicity and to set
minimum standards to protect the public from pathogen contaminated
beach waters. And it will assure that the public is notified when beach
waters exceed the standards and public health may be at risk.
Whether they're in the Carolinas or in California, in New Jersey or
New York, people across the country have a right to know when the water
is and is not safe to swim in. Beach goers should be able to wade or
swim in the surf without the fear of getting sick. Going to the beach
should be a healthy and rejuvenating experience. A day at the beach
shouldn't be followed by a day at the doctor.
Mr. President, I urge my colleagues to join me in recognizing the
importance of protecting public health at our Nation's beaches by
cosponsoring this legislation.
I ask unanimous consent that the text of the bill be printed in the
Record.
There being no objection, the bill was ordered to be printed in the
Record, as follows:
S. 1950
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 ``Beaches Environmental
Assessment, Closure, and Health Act of 1996''.
SEC. 2. FINDINGS AND PURPOSES.
(a) Findings.--Congress finds that--
(1) the Nation's beaches are a valuable public resource
used for recreation by millions of people annually;
(2) the beaches of coastal States are hosts to many out-of-
State and international visitors;
(3) tourism in the coastal zone generates billions of
dollars annually;
(4) increased population has contributed to the decline in
the environmental quality of coastal waters;
(5) pollution in coastal waters is not restricted by State
and other political boundaries;
(6) each coastal State has its own method of testing the
quality of its coastal recreation waters, providing varying
degrees of protection to the public; and
(7) the adoption of standards by coastal States for
monitoring the quality of coastal recreation waters, and the
posting of signs at beaches notifying the public during
periods when the standards are exceeded, would enhance public
health and safety.
(b) Purpose.--The purpose of this Act is to require uniform
procedures for beach testing and monitoring to protect public
safety and improve the environmental quality of coastal
recreation waters.
SEC. 3. WATER QUALITY CRITERIA AND STANDARDS.
(a) Issuance of Criteria.--Section 304(a) of the Federal
Water Pollution Control Act (33 U.S.C. 1314(a)) is amended by
adding at the end the following:
``(9) Coastal recreation waters.--(A) The Administrator,
after consultation with appropriate Federal and State
agencies and other interested persons, shall issue within 18
months after the effective date of this paragraph (and review
and revise from time to time thereafter, but in no event less
than once every 5 years) water quality criteria for pathogens
in coastal recreation waters. Such criteria shall--
``(i) be based on the best available scientific
information;
``(ii) be sufficient to protect public health and safety in
case of any reasonably anticipated exposure to pollutants as
a result of swimming, bathing, or other body contact
activities; and
``(iii) include specific numeric criteria calculated to
reflect public health risks from short-term increases in
pathogens in coastal recreation waters resulting from
rainfall, malfunctions of wastewater treatment works, and
other causes.
``(B) For purposes of this paragraph, the term `coastal
recreation waters' means Great Lakes and marine coastal
waters commonly used by the public for swimming, bathing, or
other similar primary contact purposes.''.
(b) Standards.--
(1) Adoption by states.--A State shall adopt water quality
standards for coastal recreation waters which, at a minimum,
are consistent with the criteria published by the
Administrator under section 304(a)(9) of the Federal Water
Pollution Control Act (33 U.S.C. 1314(a)(9)), as amended by
this Act, not later than 3 years following the date of such
publication. Such water quality standards shall be developed
in accordance with the requirements of section 303(c) of the
Federal Water Pollution Control Act (33 U.S.C. 1313(c)). A
State shall incorporate such standards into all appropriate
programs into which such State would incorporate other water
quality standards adopted under section 303(c) of the Federal
Water Pollution Control Act (33 U.S.C. 1313(c)).
(2) Failure of states to adopt.--If a State has not
complied with paragraph (1) by the last day of the 3-year
period beginning on the date of publication of criteria under
section 304(a)(9) of the Federal Water Pollution Control Act
(33 U.S.C. 1314(a)(9)), as amended by this Act, the water
quality criteria issued by the Administrator under such
section shall become applicable as the water quality
standards for coastal recreational waters for the State. The
State shall use the standards issued by the Administrator in
implementing all programs for which water quality standards
for coastal recreation waters are used.
SEC. 4. COASTAL BEACH WATER QUALITY MONITORING.
Title IV of the Federal Water Pollution Control Act (33
U.S.C. 1341-1345) is amended by adding at the end thereof the
following new section:
``SEC. 406. COASTAL BEACH WATER QUALITY MONITORING.
``(a) Monitoring.--Not later than 9 months after the date
on which the Administrator publishes revised water quality
criteria for coastal recreation waters under section
304(a)(9), the Administrator shall publish regulations
specifying methods to be used by States to monitor coastal
recreation waters, during periods of use by the public, for
compliance with applicable water quality standards for those
waters and protection of the public safety. Monitoring
requirements established pursuant to this subsection shall,
at a minimum--
``(1) specify the frequency of monitoring based on the
periods of recreational use of such waters;
``(2) specify the frequency of monitoring based on the
extent and degree of use during such periods;
``(3) specify the frequency of monitoring based on the
proximity of coastal recreation waters to pollution sources;
[[Page S7818]]
``(4) specify methods for detecting levels of pathogens and
for identifying short-term increases in pathogens in coastal
recreation waters; and
``(5) specify the conditions and procedures under which
discrete areas of coastal recreation waters may be exempted
by the Administrator from the monitoring requirements of this
subsection, if the Administrator determines that an exemption
will not impair--
``(A) compliance with the applicable water quality
standards for those waters; and
``(B) protection of the public safety.
``(b) Notification Requirements.--Regulations published
pursuant to subsection (a) shall require States to notify
local governments and the public of violations of applicable
water quality standards for State coastal recreation waters.
Notification pursuant to this subsection shall include, at a
minimum--
``(1) prompt communication of the occurrence, nature, and
extent of such a violation, to a designated official of a
local government having jurisdiction over land adjoining the
coastal recreation waters for which a violation is
identified; and
``(2) posting of signs, for the period during which the
violation continues, sufficient to give notice to the public
of a violation of an applicable water quality standard for
such waters and the potential risks associated with body
contact recreation in such waters.
``(c) Floatable Materials Monitoring Procedures.--The
Administrator shall--
``(1) issue guidance on uniform assessment and monitoring
procedures for floatable materials in coastal recreation
waters; and
``(2) specify the conditions under which the presence of
floatable material shall constitute a threat to public health
and safety.
``(d) Delegation of Responsibility.--A State may delegate
responsibility for monitoring and posting of coastal
recreation waters pursuant to this section to local
government authorities.
``(e) Review and Revision of Regulations.--The
Administrator shall review and revise regulations published
pursuant to this section periodically, but in no event less
than once every 5 years.
``(f) Definitions.--For the purposes of this section, the
following definitions apply:
``(1) Coastal recreation waters.--The term `coastal
recreation waters' means Great Lakes and marine coastal
waters commonly used by the public for swimming, bathing, or
other similar body contact purposes.
``(2) Floatable materials.--The term `floatable materials'
means any matter that may float or remain suspended in the
water column and includes plastic, aluminum cans, wood,
bottles, and paper products.''.
SEC. 5. STUDIES TO IDENTIFY INDICATORS OF HUMAN-SPECIFIC
PATHOGENS IN COASTAL RECREATION WATERS.
(a) Studies.--The Administrator, in cooperation with the
Under Secretary of Commerce for Oceans and Atmosphere, shall
conduct studies to provide additional information to the
current base of knowledge for use for developing better
indicators for directly detecting in coastal recreation
waters the presence of bacteria and viruses which are harmful
to human health.
(b) Report.--Not later than 4 years after the date of the
enactment of this Act, and periodically thereafter, the
Administrator shall submit to the Congress a report
describing the findings of the studies under this section,
including--
(1) recommendations concerning the need for additional
numerical limits or conditions and other actions needed to
improve the quality of coastal recreation waters;
(2) a description of the amounts and types of floatable
materials in coastal waters and on coastal beaches and of
recent trends in the amounts and types of such floatable
materials; and
(3) an evaluation of State efforts to implement this Act,
including the amendments made by this Act.
SEC. 6. GRANTS TO STATES.
(a) Grants.--The Administrator may make grants to States
for use in fulfilling requirements established pursuant to
section 3 and 4.
(b) Cost Sharing.--The total amount of grants to a State
under this section for a fiscal year shall not exceed 50
percent of the cost to the State of implementing requirements
established pursuant to section 3 and 4.
SEC. 7. DEFINITIONS.
In this Act, the following definitions apply:
(1) Administrator.--The term ``Administrator'' means the
Administrator of the Environmental Protection Agency.
(2) Coastal recreation waters.--The term ``coastal
recreation waters'' means Great Lakes and marine coastal
waters commonly used by the public for swimming, bathing, or
other similar body contact purposes.
(3) Floatable materials.--The term ``floatable materials''
means any matter that may float or remain suspended in the
water column and includes plastic, aluminum cans, wood,
bottles, and paper products.
SEC. 8. AUTHORIZATION OF APPROPRIATIONS.
There is authorized to be appropriated to the
Administrator--
(1) for use in making grants to States under section 6 not
more than $4,000,000 for each of the fiscal years 1997 and
1998; and
(2) for carrying out the other provisions of this Act not
more than $1,500,000 for each of the fiscal years 1997 and
1998.
______
By Mr. FORD (for himself, Mr. Hollings, Mr. Helms, Mr. Warner,
Mr. Byrd, Mr. Heflin, Mr. Thurmond, Mr. Shelby and Mr. Cohen):
S. 1951. A bill to ensure the competitiveness of the United States
textile and apparel industry; to the Committee on Finance.
THE CUSTOMS ENFORCEMENT AND MARKET ACCESS ACT OF 1996
Mr. FORD. Mr. President, today I am introducing legislation that is
badly needed by the American textile and apparel industry and its
workers. It complements an effort in the other body spearheaded by John
Spratt of South Carolina and supported by over 100 Members of the
House. My legislation is aimed at opening markets around the world and
at enforcing the rules of the road that govern trade in textile goods.
Broadly speaking, it will do so in four ways.
First, by extending the same authority that now exists for enforcing
intellectual property rights to opening markets for U.S. textile and
apparel products. Second, by supporting U.S. textile and apparel
producers in their ongoing efforts to modernize and become more
internationally competitive. Third, by strengthening U.S. laws against
illegal trading practices like piracy, undervaluation, and
transshipment in the textile and apparel area. And lastly, by beefing
up the ability of the U.S. Government to enforce its trade laws and
trade agreements.
Mr. President, 2 years ago, Congress passed the GATT implementing
bill which will end all limits on textile imports by the year 2005. Our
textile and apparel industry, which argued for a longer phase-out
period, very reluctantly accepted this outcome.
The industry accepted this outcome because it had already made a
commitment to compete in the global economy. Our textile and apparel
industry has invested billions of dollars in becoming more
competitive--about $12 billion just since the GATT implementing bill
was passed.
They've supported the aggressive efforts of the President and USTR to
open markets to American products. And our industry has committed to
exporting.
But what happens when American textile and apparel producers go to
foreign markets to sell their products? Too often, they find a closed
door. Worse still, those same countries that ship the most to the
United States are often the ones whose markets are closed to U.S.
products. China, for example, which is our No. 1 source of textile and
apparel imports, shipped $6.6 billion worth of textile and apparel
goods in 1995, but allowed the sale of only $63 million of United
States goods. Likewise, our textile and apparel exports to India and
Pakistan were just $19 million last year, while those two countries
sent us $2.8 billion worth of textile goods.
Clearly, we can't tell our industry to sell its products overseas if
overseas markets are closed to American goods. My bill will help by
requiring that textile agreements include specific market access
commitments and by providing for a regular evaluation of the market
access given to U.S. products.
Mr. President, nearly 1.5 million Americans are employed directly in
the textile and apparel industries, about 40,000 of them in my State of
Kentucky. American textile and apparel workers are among the most
productive in the world and make some of the finest goods anywhere.
Unfortunately, during 1995, 150,000 of those workers lost their jobs,
due in large part to surging levels of textile imports. Most of these
workers live in rural areas where jobs, particularly good jobs, are not
always easy to come by. For those workers, when the local textile mill
or apparel facility closes, there simply aren't other jobs.
Now, it's bad enough that many of those imports and lost jobs are due
to trade agreements that we should not have passed, like the NAFTA. But
what's much worse is the fact that thousands upon thousands of jobs are
lost because of illegal textile imports. This bill will give the
Customs Service badly needed tools to fight against textile and apparel
transshipments and counterfeit textile goods. And, it will raise the
penalty for those who break our laws in textile trade.
Mr. President, I want to thank those Senators who have agreed to join
me in
[[Page S7819]]
introducing this important legislation. I am particularly pleased that
we have been able to work on this in a bipartisan fashion, as we have
so many times in the past on the issues that affect our textile and
apparel workers.
This bill is not about protectionism. It's not about special favors
for a particular industry. It's about basic fairness in how we trade
with other nations. It's about enforcing our trade laws and standing up
for American textile and apparel workers.
Mr. President, my bill's message is a simple one: Our textile and
apparel industry and its workers are ready to compete. We should pass
the Customs Enforcement and Market Access Act this year to make sure
they can compete, both here in the United States and in markets around
the world.
Mr. President, I ask unanimous consent that my bill be printed in the
Record at this time, along with the cosponsorship of Mr. Hollings, Mr.
Helms, Mr. Warner, Mr. Heflin, Mr. Thurmond, Mr. Shelby, Mr. Cohen, and
Mr. Byrd, and that it be referred to the appropriate committee.
The PRESIDING OFFICER. Without objection, it is so ordered.
Mr. FORD. Mr. President, I ask unanimous consent that the Record
remain open until the close of business today so that other Senators
may add their names to the bill as original cosponsors.
The PRESIDING OFFICER. Without objection, it is so ordered.
There being no objection, the bill was ordered to be printed in the
Record, as follows:
S. 1951
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 ``Customs Enforcement and
Market Access Act of 1996''.
SEC. 2. FINDINGS.
The Congress finds that--
(1) the textile and apparel industry is a key part of the
United States manufacturing base and the third largest
manufacturing sector in the United States economy;
(2) textile and apparel facilities are often located in
economically sensitive regions;
(3) the industry has demonstrated an ability to compete in
the global economy where market access is available;
(4) the domestic textile and apparel industry has committed
significant resources to be competitive and productive;
(5) workers in the industry make the highest quality
textile and apparel goods in the world and are the world's
most productive;
(6) the industry is preparing to compete in the world
market without the protection of import quotas authorized by
the Multifiber Arrangement; and
(7) United States trade policy should be oriented toward
expanding exports and ensuring that United States trade laws
are vigorously enforced.
(8) The Committee for the Implementation of Textile
Agreements, the Office of Textiles, Apparel, and Consumer
Goods of the Department of Commerce, and the Ambassador for
Textiles and Apparel in the Office of the United States Trade
Representative--
(A) play central and indispensable roles in administering
the laws governing trade in textile and apparel goods;
(B) have diligently carried out laws enacted by the
Congress and under powers delegated to them by the President;
and
(C) have acted in accordance with United States and
international law.
SEC. 3. MARKET ACCESS FOR UNITED STATES TEXTILE AND APPAREL
PRODUCTS.
(a) Accession Protocols.--In any case in which the United
States negotiates a protocol for accession of a country to
the World Trade Organization, the Trade Representative shall
negotiate for inclusion in that protocol, in addition to any
other provisions, the following:
(1) Provisions for effective market access to that
country's domestic markets for textile and apparel products
of the United States.
(2) Provisions allowing the suspension or revocation of the
provisions of paragraph 14 (relating to increasing import
levels based on growth rates) of the Agreement on Textiles
and Clothing if the United States determines that the country
has failed to enforce the provisions referred to in paragraph
(1).
(b) Bilateral Agreements With Countries That Are Not WTO
Members.--In any case in which the United States negotiates a
textile agreement with a country that is not a WTO member,
including any agreement negotiated pursuant to section 5 of
this Act, the Trade Representative shall negotiate for
inclusion in that textile agreement, in addition to any other
provisions, the following:
(1) Provisions for effective market access to that
country's domestic markets for textile and apparel products
of the United States.
(2) Provisions that recognize the right of the United
States to pursue remedies under United States law, including
section 301 of the Trade Act of 1974, to respond to the
denial of market access described in paragraph (1).
(c) Review of Textile Agreements.--The Trade Representative
shall take into account the compliance of countries with the
provisions negotiated under subsections (a) and (b) in
identifying countries for purposes of section 183 of the
Trade Act of 1974, as added by subsection (d) of this
section.
(d) Priority Foreign Countries.--
(1) In general.--Chapter 8 of title I of the Trade Act of
1974 (19 U.S.C. 2241 and following) is amended by adding at
the end the following new section:
``SEC. 183. IDENTIFICATION OF COUNTRIES THAT DENY MARKET
ACCESS FOR TEXTILE AND APPAREL PRODUCTS.
``(a) In General.--By no later than the date that is 30
days after the date on which the annual report is submitted
to congressional committees under section 181(b), the United
States Trade Representative (hereafter referred to as the
`Trade Representative') shall identify--
``(1) those foreign countries that deny fair and equitable
market access to United States persons that produce or sell
textile or apparel products, and
``(2) those foreign countries identified under paragraph
(1) that are determined by the Trade Representative to be
priority foreign countries.
``(b) Special Rules for Identifications.--In identifying
priority foreign countries under subsection (a), the
following shall apply:
``(1) In identifying priority foreign countries under
subsection (a)(2), the Trade Representative shall identify
only those foreign countries--
``(A) that have the most onerous or egregious acts,
policies, or practices that deny fair and equitable market
access to United States persons that sell or produce textile
or apparel products,
``(B) whose acts, policies, or practices described in
subparagraph (A) have the greatest adverse impact (actual or
potential) on the relevant United States products, and
``(C) that are not--
``(i) entering into good faith negotiations, or
``(ii) making significant progress in bilateral or
multilateral negotiations,
to provide adequate and effective market access for textile
and apparel products of the United States.
``(2) In identifying foreign countries under subsection
(a)(2), the Trade Representative shall--
``(A) consult with the Chair of the Committee for the
Implementation of Textile Agreements and other appropriate
officers of the Federal Government, and
``(B) take into account information from such sources as
may be available to the Trade Representative and such
information as may be submitted to the Trade Representative
in reports submitted under section 181(b) and petitions
submitted under section 302.
``(3) The Trade Representative may identify a foreign
country under subsection (a)(1) only if the Trade
Representative finds that there is a factual basis for the
denial of fair and equitable market access as a result of the
violation of international law or an international agreement,
or the existence of barriers referred to in subsection
(d)(1).
``(4) In identifying foreign countries under paragraphs (1)
and (2) of subsection (a), the Trade Representative shall
take into account--
``(A) the history of market access laws and practices of
the foreign country, including any previous identification
under subsection (a)(2); and
``(B) the history of efforts of the United States, and the
response of the foreign country, to achieve fair and
equitable market access for textile and apparel products.
``(c) Revocations and Additional Identifications.--
``(1) In general.--The Trade Representative may at any
time--
``(A) revoke the identification of any foreign country as a
priority foreign country under this section, or
``(B) identify a foreign country as a priority foreign
country under this section,
if information available to the Trade Representative
indicates that such action is appropriate.
``(2) Reports to congress.--The Trade Representative shall
include in the semiannual report submitted to the Congress
under section 309(3) a detailed explanation of the
identification of any foreign country as a priority foreign
country under this section.
``(d) Definitions.--For the purposes of this section--
``(1) a foreign country denies fair and equitable market
access if the foreign country effectively denies access for
textile or apparel products of the United States through the
use of laws, procedures, practices, or regulations which--
``(A) violate provisions of international law or
international agreements to which both the United States and
the foreign country are parties, or
``(B) constitute discriminatory nontariff trade barriers;
``(2) a foreign country may be determined to deny fair and
equitable market access for textile or apparel products,
notwithstanding the fact that the foreign country may be in
compliance with the specific obligations of the Agreement on
Textiles and Clothing referred to in section 101(d)(4) of the
Uruguay Round Agreements Act; and
[[Page S7820]]
``(3) fair and equitable market access is not demonstrated
only by access for those textile and apparel products that
are subsequently reexported to the United States as finished
textile or apparel products.
In determining whether a foreign country denies fair and
equitable market access, the Trade Representative shall
consider whether the foreign country has enacted and is
enforcing laws which prevent and punish the manufacture,
sale, or exportation of counterfeit textile and apparel
goods.
``(e) Publication.--The Trade Representative shall publish
in the Federal Register a list of foreign countries
identified under subsection (a) and shall make such revisions
to the list as may be required by reason of action under
subsection (c).''.
(2) Conforming amendment.--The table of contents for the
Trade Act of 1974 is amended by inserting after the item
relating to section 182 the following new item:
``Sec. 183. Identification of countries that deny market access for
textile and apparel products.''.
(3) Title iii action.--Section 302(b)(2)(A) of the Trade
Act of 1974 (19 U.S.C. 2412(b)(2)(A)) is amended by inserting
``or section 183(a)(2)'' after ``182(a)(2)''.
SEC. 4. TEXTILE GLOBAL COMPETITIVENESS RESEARCH FUND.
(a) Establishment.--There is established in the United
States Treasury a Textile Global Competitiveness Research
Fund (hereafter in this Act referred to as the ``Fund'').
(b) Use of Fund.--Amounts in the Fund shall be available,
as provided in appropriations Acts, in accordance with
subsection (c)--
(1) for programs aimed at enhancing the international
competitiveness of the United States textile and apparel
manufacturers; and
(2) to the Customs Service for the enforcement of laws
governing trade in textile and apparel goods.
(c) Funding.--
(1) Deposits.--There shall be deposited in the Fund in each
fiscal year the amount, if any, by which--
(A) the amount collected in fines by virtue of the
amendments made by section 9 exceed
(B) the total amount collected for violations involving
textile and apparel goods during fiscal year 1996 under
section 592 of the Tariff Act of 1930, as in effect on the
day before the date of the enactment of this Act, adjusted in
accordance with paragraph (2).
(2) Adjustment.--(A) The amount referred to in paragraph
(1)(B) shall be increased in each fiscal year beginning in
fiscal year 1998 by an amount equal to the amount described
in paragraph (1)(B) multiplied by the cost-of-living
adjustment.
(B) For purposes of subparagraph (A), the cost-of-living
adjustment for any fiscal year is the percentage (if any) by
which--
(i) the CPI for the preceding fiscal year, exceeds
(ii) the CPI for the fiscal year 1996.
(C) For purposes of subparagraph (B), the CPI for any
fiscal year is the average of the Consumer Price Index as of
the close of the 12-month period ending on August 31 of such
fiscal year.
(D) For purposes of subparagraph (C), the term ``Consumer
Price Index'' means the last Consumer Price Index for all-
urban consumers published by the Department of Labor.
(E) If any increase determined under this paragraph is not
a multiple of $100, such increase shall be rounded to the
nearest multiple of $100.
(3) Allocations.--(A) 25 percent of the amounts deposited
in the Fund in each fiscal year shall be made available to
the Customs Service under subsection (b)(2).
(B) 75 percent of the amounts deposited in the Fund in each
fiscal year shall be made available for programs designated
pursuant to subsection (b)(1).
(d) Annual Report to Congress.--The Secretary of Commerce
shall submit to the Congress, not later than April 1 of each
year, a report on the contribution to the United States
economy of the domestic textile and apparel industry.
SEC. 5. TEXTILE AND APPAREL QUOTA LEVELS.
(a) For Countries That are not WTO Members and do not Have
Textile Agreements With the United States.--
(1) If exports to the united states exceed $100,000,000
annually or are creating serious damage or actual threat
thereof.--The Trade Representative shall take the necessary
steps to negotiate an agreement, in accordance with paragraph
(2), between the United States and any country that--
(A) is not a WTO member and is not a country to which
section 3(a) applies,
(B) is not a party to a textile agreement with the United
States, and
(C) whose exports to the United States of textile and
apparel goods--
(i) are valued at more than $100,000,000 in the most recent
12-month period ending on the last day of the preceding
month; or
(ii) are creating serious damage or actual threat thereof
to the domestic industry in the United States in any textile
category established by CITA.
(2) Contents of agreements.--It is the sense of the
Congress that an agreement negotiated with a country under
paragraph (1) should establish maximum amounts of textile and
apparel products of that country that may be imported into
the United States that do not exceed--
(A) in the first 12-month period that the agreement is in
effect, an increase of more than 8 percent of the total
volume in square meter equivalents of all textile and apparel
products of that country imported in the 12-month period
ending on the date the negotiations began; and
(B) in each subsequent 12-month period that the agreement
is in effect, an increase of not more than the percentage of
growth in the domestic market in the United States for all
textile and apparel products in the preceding 12-month
period.
(3) Inclusion of other provisions.--Those provisions
required to be included in an agreement under section 3(b)
may be included in the agreement negotiated under this
subsection.
(4) Determinations of serious damage or actual threat
thereof.--CITA shall make the determinations of serious
damage or actual threat thereof referred to in paragraph (2),
using the criteria set forth in paragraph 3 of Article 6 of
the Agreement on Textiles and Clothing.
(b) For Countries That are not WTO Members and Have Textile
Agreements With the United States.--In the case of a country
that is not a WTO member but is a party to a textile
agreement with the United States, the Trade Representative
shall take the necessary steps to negotiate a textile
agreement to go into effect when the current agreement
expires, that allows imports of textile and apparel products
of that country, during each 12-month period that the
agreement is in effect, to increase by not more than the
percentage of growth in the domestic market in the United
States for all textile and apparel products in the preceding
12-month period.
(c) For Countries That Are Acceding To the WTO.--In any
case in which the United States negotiates a protocol for
accession to the WTO under section 3(a), the Trade
Representative shall negotiate for inclusion in that protocol
provisions that require that the 10-year period provided in
the Agreement on Textiles and Clothing for phasing out of
quotas under that Agreement begin, with respect to that
country, on the day on which that country accedes to the WTO.
SEC. 6. CIRCUMVENTION OF TEXTILE AGREEMENTS.
(a) Policy for Countries That are not WTO Members.--In the
case of any country that is not a WTO member and--
(1) is negotiating a protocol with the United States for
that country's accession to the World Trade Organization,
(2) is a party to a bilateral agreement with the United
States that governs imports into the United States of textile
and apparel products of that country, or
(3) is a country with which the United States is
negotiating an agreement under section 5(a),
the Trade Representative shall ensure that the protocol under
paragraph (1), a subsequent agreement to replace the
agreement under paragraph (2) when it expires, or the
agreement described in paragraph (3), as the case may be,
provides for a reduction in the quantity of textile and
apparel goods of that country that may be imported into the
United States if CITA determines that the agreement is being
circumvented and that no, or inadequate measures, are being
applied by that country to take action against such
circumvention. Any determination by CITA under the preceding
sentence shall be made in accordance with the standards set
forth in section 8.
(b) Definitions.--For purposes of this section, a reduction
in a country's textile and apparel quotas is a reduction in
quantitative limitations otherwise applicable to imports into
the United States of that country's textile and apparel
products that is equal to--
(1) the quantity of the goods involved in the circumvention
if the circumvention is the first within the most recent 36-
month period;
(2) twice the quantity of goods involved in the
circumvention if the circumvention is the second in the most
recent 36-month period; or
(3) three times the quantity of goods involved in the
circumvention if the circumvention is the third or more in
the most recent 36-month period.
(c) Policy for WTO Members.--In any case in which a WTO
member is found by CITA to have circumvented the Agreement on
Textiles and Clothing or any other textile agreement, CITA
shall pursue the maximum penalty consistent with the WTO.
SEC. 7. CUSTOMS ENFORCEMENT ACTION.
(a) Sharing of Customs Information With CITA.--The Customs
Service shall, upon initiating an investigation relating to a
violation of the laws of the United States governing
international trade in textile and apparel goods, inform CITA
of the investigation in any case in which the alleged
violation, if true, would constitute a circumvention of any
textile agreement. In any such case, the Customs Service
shall provide to CITA--
(1) all information CITA requests that is relevant to the
alleged violation and required in order for CITA to pursue a
charge against the quotas on imports of textile and apparel
products of that country as a result of the violation; and
(2) notification, at least every 30 days until the
investigation is referred to the Department of Justice or the
Customs Service closes the investigation, of the progress of
the investigation.
(b) Factors in Proceeding With Charges Against Quotas.--In
deciding whether to pursue a charge described in subsection
(a)
[[Page S7821]]
as a result of an alleged violation described in subsection
(a), CITA, in addition to any other relevant factors which
CITA may consider, shall weigh the impact of proceeding with
such charge on potential prosecutions or civil penalties and
future enforcement of textile agreements, and shall consider
the amount of the alleged violation, the probability of
successful criminal prosecution, the degree of compliance by
the true country of origin with textile agreements, and the
damage the alleged violation would inflict on the domestic
textile and apparel industry.
(c) Decision Not To Pursue a Charge.--In any case in which
CITA decides under subsection (b) not to pursue a charge, the
Customs Service shall, as long as that decision is in effect,
report to CITA, in lieu of the reports under subsection
(a)(2)--
(1) at least once every 6 months from the date on which the
Customs Service initiated the case, on the status of the
investigation; and
(2) within 10 business days after the Customs Service
obtains new information or evidence materially relevant to
the alleged violation.
(d) Standing Not Provided.--Nothing in this Act shall be
construed to provide standing in any court or administrative
proceeding for legal action against the United States arising
from actions taken in carrying out the laws governing trade
in textile or apparel goods.
(e) Referral of Cases to Department of Justice.--In any
case in which--
(1) the Customs Service refers an alleged violation
described in subsection (a) to the Department of Justice for
prosecution, and
(2) no indictment has been brought in the case within 6
months after the referral,
the Attorney General shall provide to CITA all information
relevant to imposing a charge against the quotas on imports
of textile and apparel products of the country concerned as a
result of the violation. CITA may extend the 6-month period
referred to in paragraph (2) if requested to do so by the
Attorney General.
(f) Disclosure of Certain Confidential Information Not
Required.--Nothing in this section shall be construed to
require the disclosure by the Customs Service or the
Department of Justice of confidential information relevant to
possible imposition of criminal or civil penalties when that
information is not relevant to the imposition of a charge by
CITA against the quotas on imports of textile and apparel
products of a country.
(g) Initiation of Investigations.--
(1) Basis for initiation.--Subject to paragraph (2),
whenever the Customs Service receives credible evidence that
circumvention of a textile agreement has occurred, the
Customs Service shall initiate an investigation, to which a
customs officer shall be assigned, to determine if such
circumvention has occurred, unless such evidence is directly
related to an open investigation commenced prior to the
receipt of such evidence.
(2) Waiver.--The head of the Division of Textile
Enforcement established under section 10 may determine not to
initiate an investigation under paragraph (1) if he or she
transmits to CITA a report setting forth the reasons for that
determination.
SEC. 8. STANDARDS OF PROOF.
(a) In General.--CITA may determine that a country has
circumvented a textile agreement if CITA determines, after
consultations with the country concerned, that there is a
substantial likelihood that the circumvention occurred.
(b) Failure of Country to Cooperate.--
(1) Reliance on best available information.--If a country
fails to cooperate with CITA in an investigation to determine
if a textile agreement has been circumvented, CITA shall base
its determination on the best available information.
(2) Acts constituting failure to cooperate.--Acts
indicating failure of a country to cooperate under paragraph
(1) include, but are not limited to--
(A) denying entry of officials of the Customs Service to
investigate violations of, or promote compliance with, any
textile agreement;
(B) providing appropriate United States officials with
inaccurate or incomplete information, including information
demonstrating compliance with United States rules of origin
for textile and apparel products; and
(C) denying appropriate United States officials access to
information or documentation relating to production capacity
of, and outward processing done by, manufacturers within the
country.
SEC. 9. PENALTIES FOR VIOLATIONS OF CUSTOMS LAWS INVOLVING
TEXTILE AND APPAREL GOODS.
(a) Penalties.--Section 592 of the Tariff Act of 1930 (19
U.S.C. 1592) is amended by adding at the end the following:
``(g) Penalties Involving Textile and Apparel Goods.--
``(1) Fraud.--Notwithstanding subsection (c), the civil
penalty for a fraudulent violation of subsection (a)
involving textile and apparel goods--
``(A) shall, subject to subparagraph (B), be double the
amount that would otherwise apply under subsection (c)(1);
and
``(B) shall be an amount not to exceed 300 percent of the
declared value in the United States of the merchandise if the
violation has the effect of circumventing any quota on
textile and apparel goods.
``(2) Gross negligence.--Notwithstanding subsection (c),
the civil penalty for a grossly negligent violation of
subsection (a) involving textile and apparel goods--
``(A) shall, subject to subparagraphs (B) and (C), be
double the amount that would otherwise apply under subsection
(c)(2);
``(B) shall, if the violation has the effect of
circumventing any quota of the United States on textile and
apparel goods, and subject to subparagraph (C), be 200
percent of the declared value of the merchandise; and
``(C) shall, if the violation is a third or subsequent
offense occurring within 3 years, be the penalty for a
fraudulent violation under paragraph (1) (A) or (B),
whichever is applicable.
``(3) Negligence.--Notwithstanding subsection (c), the
civil penalty for a negligent violation of subsection (a)
involving textile and apparel goods--
``(A) shall, subject to subparagraphs (B) and (C), be
double the amount that would otherwise apply under subsection
(a)(3);
``(B) shall, if the violation has the effect of
circumventing any quota of the United States on textile and
apparel goods, and subject to subparagraph (C), be 100
percent of the declared value of the merchandise; and
``(C) shall, if the violation is a third or subsequent
offense occurring within 3 years, be the penalty for a
grossly negligent violation under paragraph (2) (A) or (B),
whichever is applicable.''.
(b) Mitigation.--Section 618 of the Tariff Act of 1930 (19
U.S.C. 1618) is amended--
(1) by striking ``Whenever'' and inserting ``(a) In
General.--Whenever'', and
(2) by adding at the end the following new subsection:
``(b) Mitigation Rules Relating To Textile And Apparel
Goods.--
``(1) General rule.--Notwithstanding any other provision of
law, the Secretary of the Treasury may remit or mitigate any
fine or penalty imposed pursuant to section 592 involving
textile or apparel goods only if--
``(A) in the case of a first offense, the violation is due
to either negligence or gross negligence; and
``(B) in the case of a second or subsequent offense, prior
disclosure (as defined in section 592(c)(4)) is made within
180 days after the entry of the goods.
``(2) Special rule for prior disclosures after 180 days.--
In the case of a second or subsequent offense where prior
disclosure (as defined in section 592(c)(4)) is made after
180 days after the entry of the goods, the Secretary of the
Treasury may remit or mitigate not more than 50 percent of
such fines or penalties.''.
(c) Seizure and Forfeiture.--Section 596(c)(2) of the
Tariff Act of 1930 (19 U.S.C. 1595a(c)(2)) is amended--
(1) in subparagraph (E), by striking ``or'' after the
semicolon;
(2) in subparagraph (F), by striking the period and
inserting ``; or''; and
(3) by inserting after subparagraph (F) the following:
``(G) consists of textile or apparel goods introduced into
the United States for entry, transit, or exportation, and
``(i) the merchandise or its container bears false or
fraudulent markings with respect to the country of origin,
unless the importer of the merchandise demonstrates that the
markings were made in order to comply with the rules of
origin of the country that is the final destination of the
merchandise; or
``(ii) the merchandise or its container is introduced or
attempted to be introduced into the United States by means
of, or such introduction or attempt is aided or facilitated
by means of, a material false statement, act, or omission
with the intention or effect of--
``(I) circumventing any quota that applies to the
merchandise, or
``(II) undervaluing the merchandise.''.
(d) Certificates of Origin.--Notwithstanding any other
provision of law, all importations of textile and apparel
goods shall be accompanied by--
(1)(A) the name and address of the manufacturer or producer
of the goods, and any other information with respect to the
manufacturer or producer that the Customs Service may
require; and
(B) if there is more than one manufacturer or producer, or
there is a contractor or subcontractor of the manufacturer or
producer with respect to the manufacture or production of the
goods, the information required under subparagraph (A) with
respect to each such manufacturer, producer, contractor, or
subcontractor, including a description of the process
performed by each such entity;
(2) a certification by the importer that the importer has
exercised reasonable care to ascertain the true country of
origin of the textile and apparel goods and the accuracy of
all other information provided on the documentation
accompanying the imported goods, as well as a certification
of the specific action taken by the importer to ensure
reasonable care for purposes of this paragraph; and
(3) a certification by the importer that the goods being
entered do not violate applicable trademark, copyright, and
patent laws.
Information provided under this subsection shall be
sufficient to demonstrate compliance with the United States
rules of origin for textile and apparel goods.
SEC. 10. DIVISION ON TEXTILE ENFORCEMENT.
(a) Establishment.--The Commissioner of Customs shall, not
later than 6 months after the date of the enactment of this
Act, establish in the Customs Service a Division on Textile
Enforcement (hereafter in this section referred to as the
``DTE''), using existing resources available to the Customs
Service. The head of the DTE shall be an officer
[[Page S7822]]
of the Customs Service in a position at the level of an
Assistant Commissioner of Customs.
(b) Functions.--The DTE shall be responsible for enforcing
all laws of the United States, and all bilateral and
multilateral treaties and agreements, governing the
importation of textile and apparel goods, that the Customs
Service is responsible for enforcing.
(c) Personnel.--The Commissioner of Customs shall assign
personnel to the DTE who have expertise in textile and
apparel goods, including, but not limited to, import
specialists, investigators, attorneys, accountants,
laboratory technicians, and members of the textile production
verification teams.
(d) Subdivisions.--The DTE shall establish a separate
subdivision for each geographic region which is a major
source of textile and apparel goods imported into the United
States, including a subdivision for each of the following:
(1) The Far East.
(2) South Asia.
(3) South America.
(4) Central America and the Caribbean.
(5) The Middle East and Africa.
(e) Assignments Abroad.--
(1) To certain countries.--If permitted by the host
country, at least 1 customs officer shall be assigned in each
country, other than Canada or Mexico, whose annual exports to
the United States of textile and apparel goods equal or
exceed 500,000,000 square meter equivalents. Each such
customs officer shall be responsible only for matters
relating to exports to the United States of textile and
apparel goods.
(2) Responsibility of secretary of state.--The Secretary of
State shall take the necessary steps to facilitate the
assignment abroad of customs officers under paragraph (1), by
seeking to obtain the approval of the foreign governments
concerned for such assignments.
(f) Reports.--
(1) Reports by customs officers.--Each customs officer
assigned under subsection (e)(1) shall prepare and submit to
the Commissioner of Customs, at least monthly, reports
summarizing his or her activities, assessing the compliance
with applicable textile agreements by the country concerned,
and assessing the intellectual property protection provided
to textile and apparel goods in that country.
(2) Reports by dte.--The DTE shall prepare and submit to
the Commissioner an annual report--
(A) evaluating the extent of circumvention of textile
agreements with the United States, the extent of compliance
with the rules of origin of the United States relating to
textile and apparel goods, the extent to which countries act
in compliance with Article XX of the GATT 1994 (as defined in
section 2 of the Uruguay Round Agreements Act (19 U.S.C.
3501)) with respect to textile and apparel goods, and the
adequacy of intellectual property protection provided to
textile and apparel goods; and
(B) recommending new methods, if necessary, to address the
matters evaluated under subparagraph (A).
(3) Availability of reports.--Each report submitted under
this subsection shall be made available to appropriate
agencies of the executive branch, including the Office of
Textiles, Apparel, and Consumer Goods of the Department of
Commerce.
SEC. 11. WITHDRAWAL OF UNILATERAL TRADE CONCESSIONS.
(a) Withdrawal of Concessions.--In any case in which--
(1) CITA determines that a country--
(A) has demonstrated a consistent pattern of circumventing
textile agreements with the United States,
(B) refuses to cooperate with investigations by the United
States of any such alleged circumvention,
(C) fails to provide adequate enforcement of intellectual
property rights with respect to textile and apparel goods, or
(D) fails to provide fair and equitable market access for
textile and apparel products of the United States, and
(2) the United States extends to the products of that
country preferential tariff or quota treatment other than
pursuant to a bilateral or multilateral agreement,
then such preferential treatment shall be withdrawn from the
textile and apparel goods that are products of that country
for such period as shall be determined by the Trade
Representative, in consultation with CITA.
(b) National Interest Waiver.--The President may waive the
application of subsection (a) with respect to a country if
the President determines that the waiver will allow the
United States to secure effective commitments from that
country to prevent future circumvention of textile agreements
with the United States, or is otherwise in the national
interest. The President shall publish any such waiver, and
the reasons for the waiver, in the Federal Register.
SEC. 12. DEFINITIONS.
As used in this Act:
(1) Agreement on textiles and clothing.--The term
``Agreement on Textiles and Clothing'' means the Agreement on
Textiles and Clothing referred to in section 101(d)(4) of the
Uruguay Round Agreements Act (19 U.S.C. 3511(d)(4)).
(2) Circumvent and circumvention.--The terms ``circumvent''
and ``circumvention'' refer to a situation in which a
country--
(A) takes no, or inadequate measures to prevent illegal
transshipment of goods that is carried out by rerouting,
false declaration concerning country or place of origin,
falsification of official documents, evasion of United States
rules of origin for textile and apparel goods, or any other
means; or
(B) takes no or inadequate measures to prevent being used
as a transit point for the shipment of goods in violation of
an applicable textile agreement.
(3) CITA.--The term ``CITA'' means the Committee for the
Implementation of Textile Agreements established under
Executive Order 11651 of March 3, 1972 (7 U.S.C. 1854 note),
or any successor entity or officer performing functions of
that committee after the date of the enactment of this Act.
(4) Country.--The term ``country'' includes a separate
customs territory, within the meaning of Article XII of the
WTO Agreement or other applicable international agreement.
(5) Customs service.--The term ``Customs Service'' means
the United States Customs Service.
(6) Multifiber Arrangement.--The term ``Multifiber
Arrangement'' means the Arrangement Regarding International
Trade in Textiles referred to in Article 1(3) of the
Agreement on Textiles and Clothing.
(7) Textile agreement; Textile agreement with the United
States.--The terms ``textile agreement'' and ``textile
agreement with the United States'' mean an agreement relating
to textile and apparel goods that is negotiated under section
204 of the Agricultural Act of 1956 (7 U.S.C. 1854),
including the Agreement on Textiles and Clothing.
(8) Trade representative.--The term ``Trade
Representative'' means the United States Trade
Representative.
(9) World trade organization and wto.--The terms ``World
Trade Organization'' and ``WTO'' mean the organization
established pursuant to the WTO Agreement.
(10) WTO agreement.--The term ``WTO Agreement'' means the
Agreement Establishing the World Trade Organization entered
into on April 15, 1994.
(11) WTO member.--The term ``WTO member'' means a state, or
separate customs territory (within the meaning of Article XII
of the WTO Agreement.
SEC. 13. EFFECTIVE DATE.
This Act and the amendments made by this Act shall take
effect on October 1, 1996.
Mr. HOLLINGS. Mr. President, I rise today to support the efforts of
my good friend from Kentucky, Senator Ford, and the tireless efforts of
my colleague in the House, Congressman John Spratt. Mr. President, in
the last year alone we have lost over 150,000 jobs in the textile and
apparel industry. Just last week, Springs Industries announced it would
close several plants and lay off 850 employees.
Our trade deficit in textiles and apparel stands at an appalling $35
billion.
As bad as that number is, the sad fact is that $35 billion
underestimates the true size of the trade deficit. Because of the
massive amounts of transhipment that have flooded our shores, the
actual trade deficit is some $6 billion larger. What is left of the
quota system has become a porous sieve, subject to the manipulation of
shady importers and retailers who look the other way at fraudulent
schemes designed to evade our quota system, and steal jobs from the
American worker.
The legislation being introduced will shut down the illegal evasion
of our quotas. It slaps harsh penalties on customs offenders, and it
provides customs with adequate resources to enforce our textile
agreements.
Mr. President, the time has come for the administration to crack down
on this lawless behavior and stand up for the American worker.
Mr. HELMS. Mr. President, this is important legislation that will be
beneficial to an enormous number of Americans because it will open
foreign markets to U.S. products and countries that engage in dishonest
activities in international trade. Those that violate trade laws and
trade agreements will pay for it. This bill establishes a level playing
field for U.S. textile companies and takes an unmistakable stand for
American workers. If foreign markets can be opened, and U.S. trade with
countries overseas increased, it will be a tremendous boost for U.S.
jobs.
Mr. President, the economic name of the game as we approach the 21st
century lies in increasing our exports.
This bill addresses a pressing need. American workers, as matters now
stand, are being squeezed from every direction. Many countries,
especially Mainland China, are deliberately violating their trade
agreements; they are transshipping their goods through other nations
deliberately to circumvent United States textile import laws. American
workers should not be forced to compete against foreign companies that
deliberately engage in illegal and immoral trade practices.
[[Page S7823]]
Such countries, Communist China, India, Macau, Hong Kong, to name a
few, pump billions of dollars of products into our markets, cheating
every step of the way. The Winston-Salem Journal pointed out the other
day that the United States Customs Service estimates that China alone
illegally transships $4 to $6 billion per year. This banditry costs
American businesses--and, therefore, consumers--up to $4 billion a
year, not to mention the loss of countless thousands of American jobs.
Mr. President, S. 1951--the Textile and Apparel Global
Competitiveness Act of 1996--will, when it becomes law, impose stiff
sanctions on countries that transship textile products into the United
States. Current penalties will be doubled--in some cases tripled--and
more reliable proof of the country of origin will be required for
textile imports entering the United States. S. 1951 enables the Customs
Service to seize goods imported illegally by the use of false or
misleading statements or acts.
So, Mr. President, this bill S. 1951, of which I am a principal
cosponsor, is about fair trade and reciprocity. Since U.S. markets are
open, it is only fair to demand that other countries open their
markets. As matters now stand countless countries close their markets
to American products while pouring their exports through our open
doors. China, Pakistan, and India together ship 9.4 billion dollars'
worth of goods to United States markets--more than 100 times the $92
million in United States goods that were, at last reports, allowed into
their countries.
S. 1951, when enacted, will require United States negotiators to
secure effective access to foreign markets for United States textile
and apparel products; in other words, it will press open markets of
countries that have shut their doors in Uncle Sam's face. If we are
going to be hospitable to foreign imports, it's only fair to require
the same of them. One specific benefit of this bill is that it will
deny to China the free trade benefits of the World Trade Organization
until China dismantles her iron fence against United States textiles.
China must not be permitted to hold membership in the WTO until China
removes her arrogant trade barriers.
Moreover, Mr. President, Communist China competes with American
workers with unspeakable use of slave labor and child labor. Chinese
slave laborers are often political prisoners. Exploitation of children
as workers is rampant, especially in Asia.
Mr. President, the United States must never forget that we become a
part of what we condone. Therefore, the need for this bill is obvious
in the light of the tremendous loss of U.S. jobs inflicted on American
workers--particularly in North Carolina--by the illegal practices of
foreign countries. The United States lost 53,000 textile jobs last
year. North Carolina lost as many as in the 3 previous years combined,
with plant shutdowns and layoffs costing 11,316 North Carolina jobs.
Fruit of the Loom alone was forced to abolish 3,200 jobs in 1995, and a
Fruit of the Loom spokesman blamed it on ``the cumulative impact of
NAFTA and GATT'' trade agreements.
Headline after headline has announced major company shutdowns or job
layoffs. An eye-popping review article in the Winston-Salem Journal
provided a long list of companies--including, among others, Sara Lee,
Fieldcrest Cannon, Dupont, and Tultex--that have closed plants and laid
off workers in North Carolina in the first part of this year. Overall,
2,918 layoffs in 26 North Carolina cities and towns were announced in
the first 4 months of 1996.
Mr. President, I ask unanimous consent that the aforementioned
Winston-Salem Journal article be printed in the Record at the
conclusion of my remarks.
The PRESIDING OFFICER. Without objection, it is so ordered.
(See exhibit 1.)
Mr. HELMS. Mr. President, while foreign imports are pouring in like a
tidal wave, North Carolina workers are being forced onto the
unemployment lines. This obviously is having a devastating impact on
families and communities across America. Mr. President, this bill isn't
``protectionism,'' it's ``survivalism.'' United States business
should--and must--demand access to the international market so that
American workers can have a fair shot in world competition.
Exhibit 1
[From Winston-Salem Journal, July 7, 1996]
Sock It to 'Em?
congress takes aim at asia in textile bill
(By John Hoeffel)
Washington.--Stories of textile plants closing and laid-off
workers scrambling to find scarce low-skilled jobs in this
high-tech world have been commonplace for at least 20 years.
The number of textile employees has been in a steady slide.
But the news appears to be getting worse.
Last year, North Carolina lost as many textile jobs as in
the previous three years combined. Plant closing and layoffs
cost the state 11,316 jobs.
In the first four months of this year, 22 companies
announced 2,918 layoffs in 26 North Carolina cities and
towns.
North Carolina is the nation's No. 1 textile-producing
state, and it has almost a third of the employees.
Nationwide, 53,500 textile jobs were lost in 1995.
Even with those stunning losses, textiles and apparel are
still the top manufacturing industry in North Carolina, with
annual sales averaging about $25 billion. Three of the
state's top five employers are textile companies, including
Sara Lee Corp., which has several divisions based in Winston-
Salem.
At the end of last year, 261,641 North Carolinians still
worked in the industry, which is concentrated in the
Piedmont. Forsyth, Guilford and Surry counties all rank in
the top 10 counties for textile and apparel employment.
The politically powerful companies have a long record of
looking to Washington for help, and the South's congressmen
have an equally long record of hastening to erect barriers to
cheap imports.
But this is a new economic era.
Free trade is now the mantra of centrists in both the
Republican and Democratic parties. The North American Free
Trade Agreement and the General Agreement on Tariffs and
Trade dismantled many trade barriers, including protectionist
textile quotas that will be completely eliminated by 2005.
Faced with mounting job losses, congressmen from the South
cast about for another avenue and found it with a bill that
was introduced last month.
That bill, called the Textile and Apparel Global
Competitiveness Act, aims not at keeping imports out, but at
cracking open foreign markets that are closed to American
exports. ``We expect their door to be more than slightly
ajar,'' said Rep. Howard Coble, the 6th District Republican
who is the chairman of the House textile caucus and an
original co-sponsor of the bill. ``We're not building a wall
around ourselves and trying to block imports.''
The bill also aims at ending transshipments, the illegal
practice of sneaking textiles from one country into the
United States under another country's quota by diverting them
through that third country. The bill is targeted at Asia in
general and China in particular.
The United States exported $1.96 billion in textiles to the
top 14 textile producing countries in Asia. Those countries
exported $24.79 billion in textiles to the United States.
A source with the U.S. Customs Service says that China
transships $4 billion to $6 billion through such places as
Hong Kong and Macau, where the products are relabeled ``Made
in Hong Kong'' or ``Made in Macau.''
Sen. Jesse Helms, R-N.C., who is no fan of China and has
railed against transshipping, plans to sponsor a version of
the bill in the Senate. ``It requires retaliation against
countries that just flout honest and decency in international
trade and countries that are closed to us and do business in
our country,'' he said. ``It's time for us to stand up for
American workers.''
The bill strengthens the roles of the U.S. trade
representative in negotiating agreements and the Customs
Service in investigating illegal shipments. It establishes
steep penalties for violations. It doubles some fines and
reduces quotas by an amount equal to three times the volume
of transshipped goods when a country is caught transshipping
for the third time.
Textile importers, who could be socked with stiff penalties
for importing illegal products, oppose the bill.
``It's the same industry coming back after many, many years
of protection wanting more special favors from government,''
said Laura E. Jones, the executive director of the U.S.
Association of Importers of Textiles and Apparel. ``They
still don't want to compete.''
The bill's supporters, sensitive about their protectionist
past, react defensively, bringing up the subject of
protectionism on their own. ``We're going to have to do a
good marketing job in making it clear that this is not a
protectionist proposal,'' Coble said.
But Jones said that the bill amounts to back-door
protectionism, making it easier for a select industry to
pursue sanctions against importers and foreign countries.
``They do not need to have standards lowered for them so they
can go around harassing our industry,'' she said.
As with the old protectionist legislation, Jones said, the
consumers lose. ``I just think the consumers end up paying
more in the end.'' she said.
She also charged that Customs has not discovered massive
transshipment because they
[[Page S7824]]
don't exist. ``The Customs Service can find cocaine and
heroin, but they can't find bras and underpants,'' she said
sarcastically. ``If they can't find it now, this isn't going
to be an incentive to them to find it later.''
The bill is not expected to pass this session because the
schedule is too crowded.
``We just don't want this shoved off the table,'' Coble
said.
Rep. John Spratt, D-S.C., was the main author and
introduced the bill. But in an election-year press release,
Rep. Richard Burr, the 5th District Republican and an
original co-sponsor, claimed credit for introducing it.
By all accounts, Burr worked hard to collect co-sponsors to
help demonstrate wide support for the bill. It has more than
100.
Some in the industry have criticized the Clinton
administration, arguing that it has done little to enforce
textile treaties. Helms, though, was more expansive in
directing his criticism. ``I have got to be honest and say
that previous administrations and the present administration
have not done enough. It's a bipartisan folly,'' he said.
Work on the bill seemed to rattle the administration's
cage.
Customs announced last month that it was taking measures
designed to stem Chinese transhipments through Macau and Hong
Kong, requiring greater verification that textiles shipped
from those countries were made there. Customs just this month
received the power to block shipments from factories that
won't allow Customs investigators inside.
Whether the bill and this Customs effort, will half the job
losses is unclear. Burr said that it is imperative to
introduced the bill because of continuing plant closings,
citing the two that Sara Lee Knit Products announced in
Sparta, costing 250 jobs, and in Jefferson, costing 589.
But Sara Lee officials said that both plants closed because
of weak domestic sales and that opening foreign markets would
not have prevented the move. ``It's really completely
unrelated,'' Nancy Young said.
Textile and apparel companies are suffering through an
extended retail slowdown. But the companies are also cutting
jobs, as Gordon A. Berkstresser III notes, because of
continuing automation and other efficiencies.
And Berkstresser, a professor of textile and apparel
management at N.C. State University, also questioned whether
the companies are prepared to sell in Indonesia or Malaysia.
``We haven't gone over and done the kind of market research
to see what kind of products we can sell in Asia,'' he said.
But Dennis M. Julian the executive vice president of the
N.C. Textile Manufacturers Association, said he thinks that
the bill would help stabilize the industry.
Jerry Cook, the director of international trade for Sara
Lee Knit Products, said: ``Anything that helps open market
access, I think we'd be really supportive of. It's a tough
market out there.''
textile trade with asia
[In millions of dollars]
U.S. Exports to:
Bangladesh......................................................
China..........................................................63.0
Taiwan.........................................................93.5
Hong Kong.....................................................268.3
India..........................................................14.9
Indonesia......................................................21.4
Japan.........................................................145.6
South Korea...................................................136.7
Macau...........................................................
Malaysia.......................................................23.0
Pakistan........................................................
Philippines....................................................53.1
Singapore.....................................................103.6
Thailand.......................................................41.3
__________
Total.....................................................1,964.4
==========
_______________________________________________________________________
U.S. Imports from:
Bangladesh..................................................1,114.5
China.......................................................4,802.5
Taiwan......................................................2,757.8
Hong Kong...................................................4,390.8
India.......................................................1,614.9
Indonesia...................................................1,336.2
Japan.........................................................481.1
South Korea.................................................2,271.1
Macau.........................................................764.3
Malaysia......................................................745.2
Pakistan......................................................964.8
Philippines.................................................1,704.0
Singapore.....................................................425.5
Thailand....................................................1,419.8
__________
Total....................................................24,792.5
TEXTILE AND APPAREL PLANT CLOSINGS AND LAYOFFS IN NORTH CAROLINA--ANNOUNCED IN THE FIRST FOUR MONTHS OF THIS
YEAR
----------------------------------------------------------------------------------------------------------------
Company Location Jobs lost Reason given
----------------------------------------------------------------------------------------------------------------
Champion Products.................... Weaverville............. 200 Cutting costs
CMI Industries....................... Elkin, Boonville........ 100 Slow sales
Comar industries..................... Monroe.................. 105 Decreased demand
Dupont............................... Kinston................. 200 Cutting costs
Wilmington.............. 50 Cutting costs
Fieldcrest Cannon.................... Concord................. 150 Relocating operations
Ithaca Industries.................... Gastonia................ 70 Reduction in force
Wilkesboro.............. 50 Reduction in force
Jaspar Textiles...................... Angler.................. 75 Consolidation
Jonbil............................... Henderson............... 62 Import competition
Lucia................................ Winston-Salem........... 55 Restructuring
Elkin................... 13 Restructuring
N.C. Garment Co...................... High Point.............. 32 Import competition
Oxford industries.................... Burgaw.................. 90 Import competition
Rocky Mount Mills.................... Monroe.................. 320 Competition
Royals............................... Skyland................. 50 Import competition
Sarah Lee Hosiery.................... Winston-Salem........... 45 Slow sales
Sare Lee Knit Products............... Lumberton............... 370 Cutting costs
SCT Yarns............................ Cherryville............. 180 Foreign competition
SOft Care Apparel Co................. Fuquay-Varina........... 100 Economics
Southern Apparel Co.................. Robersonville........... 80 Lost contract
The Bibb Co.......................... Rockingham.............. 250 Downsizing
Tultex............................... Marion.................. 141 Production moved overseas
U.S. Colors.......................... Rocky Mount............. 50 Ceased product line
Whisper Soft Mills................... Kenansville............. 80 Decreased profits
----------------
Total jobs lost to closings and ........................ 2,918
layoffs.
----------------------------------------------------------------------------------------------------------------
Source: Newspaper articles supplied to the N.C. Employment Security Commission.
Mr. BYRD. Mr. President, I wholeheartedly support the bill that the
Senator from Kentucky [Mr. Ford] has just introduced. The Textile and
Apparel Global Competitiveness Act of 1996 will provide needed
protections for struggling U.S. textile and apparel producers from
unfair competition caused by overseas producers who seek to exceed U.S.
quotas. These overseas producers ship excess goods through circuitous
routes so that they appear to originate in third countries whose U.S.
import quotas have not been met. The Customs Service and industry
estimates put the cost of this practice to American industry and its
workers at $2 to $4 billion.
The Textile and Apparel Global Competitiveness Act requires more
equitable trade negotiations on textile and apparel goods, with greater
access to foreign markets for U.S.-produced textile and apparel goods.
It also provides for increased enforcement of existing trade laws, with
higher fines providing additional trade adjustment assistance to U.S.
textile and apparel producers.
In West Virginia, two companies that sew clothing proudly bearing
``Made in the USA'' labels, Hodges Apparel and Safety Stitch, have been
feeling the squeeze created by that kind of overseas competition. This
spring, both manufacturers were notified that their major supplier
would be forced to move its work offshore in order to regain
profitability. Unless these West Virginia firms can garner other
orders, the last 200 talented and dedicated garment workers in
Harrisville will be out of work. In this economically challenged area,
job losses on this scale constitute more than a minor unravelling of
the economic fabric of Ritchie County--they are a tear in the very
fabric of American society.
Mr. President, these potential job losses are not occurring because
the quality of clothing produced in the United States is poor; quite
the contrary. U.S.-made clothing and textiles are competitive with
their overseas competitors on the basis of design, quality, and any
standard other than cost. But U.S. production costs must include
pension and health care payments for workers, and costs to meet
workplace safety and environmental standards. Overseas producers are
not required to cover these costs and meet these standards. They may
overwork and underpay their workers, forcing
[[Page S7825]]
them to labor in unsafe factories that pollute the air and water around
them.
The United States is proud of its laws protecting workers and the
environment. The Senate this week voted to increase the minimum wage,
so that working men and women can provide an adequate standard of
living for their families. None of us wants to reduce that standard of
living, or give up workplace safety or clean air and water in order to
``compete'' with inexpensive goods produced by workers paid just
pennies a day before they return to squalid homes under skies laden
with pollutants. But if we are to preserve our jobs in the face of such
undercutting competition, we must ensure that U.S. producers are needed
in order to meet the demand for clothing and textile goods. That is, in
part, why quotas exist--to prevent overseas producers from saturating
the market for U.S. goods, undercutting U.S. products produced at
higher cost.
Attempts by these overseas producers to evade U.S. import quotas, or
to evade other U.S. trade laws and treaties, must be firmly and
effectively halted. Enforcement, fines and other remedies must be
sufficient to deter this kind of behavior. The bill introduced by the
Senator from Kentucky accurately targets these problems. It also
provides a source of additional revenue for trade adjustment assistance
for U.S. textile and apparel producers, helping them to modernize and
more effectively compete on a cost basis with overseas competitors,
both here and in foreign markets. I am proud to be a cosponsor, and I
thank Senator Ford for his leadership in introducing this bill.
Mr. HEFLIN. Mr. President, I am pleased to join my colleague from
Kentucky and others in introducing the Textile and Apparel Global
Competitiveness Act. This important legislation addresses a problem of
grave consequence in my State and others where the textile and apparel
industry has been hurt dramatically in recent years due to job
relocation and factors resulting from the enactment of NAFTA and GATT.
This bill does nothing to undo these agreements, but it does go a long
way toward strengthening protections for the textile and wearing
apparel sector of the economy and the millions of workers affected by
the changes which are occurring.
This legislation requires the U.S. Trade Representative, when
negotiating textile agreements with nations who are not members of the
World Trade Organization to secure effective market access for American
textile and apparel producers. It includes provisions allowing
penalties for noncompliance with these market-access agreements under
WTO rules and U.S. law. Furthermore, it creates a special 301 list for
market access for these products and requires the Secretary of Commerce
to issue a report to Congress each year that outlines the economic
contribution of the American textile and apparel industries.
While the industry enjoys broad support in Congress and in the
administration, it has been the target of aggressive attacks during the
last several years. Most of these attacks have been thwarted, but they
have come at a time when the textile and apparel industry is undergoing
major transformation as it pushes to increase productivity and to
become more global in its perspective and methods of operation.
The American textile and apparel industry is seeking to make a
successful transition to a quota-free environment within a 10-year
timeframe. This transition must have the safeguards provided by this
measure in order to allow the industry to realize that success.
I congratulate Senator Ford for his leadership on this issue and urge
my colleagues to join us in supporting the Textile and Apparel Global
Competitiveness Act.
Mr. THURMOND. Mr. President, I rise today to join with several of my
colleagues to sponsor the Customs Enforcement Act of 1996. This
legislation is designed to strengthen our laws which fight illegal
trade in textile and apparel items and open foreign markets to more
American products. A companion measure, H.R. 3654, was recently
introduced in the House of Representatives.
Mr. President, I have often stated that trade with other countries
should be fair, as opposed to free. This means that when exporters from
another country seek unlimited access to our markets, then our U.S.
producers should likewise have open access to their country's markets.
Many examples exist where the United States has given another country
access to our marketplace, only to have our access limited in their
country. The legislation we are introducing today attempts to mitigate
this practice. This measure will require the USTR to secure effective
market access for U.S. produced textile and apparel products. Further,
if these markets are not opened, the USTR has the ability to impose
penalties in an attempt to force these markets open.
Mr. President, another major concern this legislation attempts to
address is transshipping. This is a practice where an exporter ships
goods through a third country to avoid U.S. import quotas. The worst
offenders in the area of transshipment countries are China, India, and
Pakistan. It is estimated that transshipments account for at to least 4
billion dollars' worth of the textile and apparel items shipped into
the United States in a year and this figure could be as high as $8
billion. This bill, Mr. President, tightens the requirements for
importing items into this country and provides for better documentation
so that transshipping can be more easily traced. Further, penalties are
increased for each transshipping violation.
Mr. President, this is not a protectionist bill. Nor does it limit
textile imports. This measure attempts to level the playing field for
the domestic textile and apparel industry. I hope my colleagues will
support this measure and move it expeditiously through the legislative
process.
____________________