[Congressional Record Volume 143, Number 13 (Wednesday, February 5, 1997)]
[Senate]
[Pages S1023-S1025]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Ms. SNOWE:
  S. 274. A bill to establish a Northern Border States-Canada Trade 
Council, and for other purposes; to the Committee on Finance.


                 THE NORTHERN BORDER STATES COUNCIL ACT

 Ms. SNOWE. Mr. President, today I am introducing legislation 
that would establish a Northern Border States Council on United States-
Canada Trade.
  The purpose of this Council is to oversee cross-border trade with our 
Nation's largest trading partner--an action that I believe is long 
overdue. The Council will serve as an early warning system to alert 
State and Federal trade officials to problems in cross-border traffic 
and trade. The Council will enable the United States to more 
effectively administer trade policy with Canada by applying the wealth 
of insight, knowledge and expertise that resides in our northern border 
States on this critical policy issue.
  Within the U.S. Government we already have the Department of Commerce 
and a U.S. Trade Representative. But the fact is that both are Federal 
entities, responsible for our larger, national U.S. trade interests. 
Too often, such entities fail to give full consideration to the 
interests of the 12 northern States that share a border with Canada, 
the longest demilitarized border between 2 nations anywhere in the 
world. The Northern Border States Council will provide State trade 
officials a mechanism to share information about cross-border traffic 
and trade. The Council will then advise the Congress, the President, 
the U.S. Trade Representative, the Secretary of Commerce, and other 
Federal and State trade officials on United States.-Canada trade 
policies, practices, and problems.
  Canada is America's largest and most important trading partner. 
Canada is by far the top purchaser of U.S. export goods and services, 
as it is the largest source of U.S. imports. With an economy one-tenth 
the size of our own, Canada's economic health depends on maintaining 
close trade ties with the United States. While Canada accounts for 
about one-fifth of U.S. exports and imports, the United States is the 
source of two-thirds of Canada's imports and provides the market for 
fully three-quarters of all of Canada's exports.
  The United States and Canada have the largest bilateral trade 
relationship in the world, a relationship that is remarkable not only 
for its strength and general health, but also for the intensity of the 
trade and border problems that do frequently develop. Over the last 
decade, Canada and the United States have signed two major trade 
agreements--the United States-Canada Free Trade Agreement in 1989, and 
the North American Free Trade Agreement in 1993. Notwithstanding these 
trade accords, numerous disagreements have caused trade negotiators to 
shuttle back and forth between Washington and Ottawa. Most of the more 
well-known trade disputes with Canada have involved agricultural 
commodities such as durum wheat, peanut butter, dairy products, and 
poultry products, and these disputes have impacted more than just the 
12 northern border States.
  Each and every day, however, an enormous quantity of trade and 
traffic crosses the United States-Canada border. There are literally 
thousands of businesses, large and small, that rely on this cross-
border traffic and trade for their livelihood.
  My own State of Maine has had a long-running dispute with Canada over 
that nation's unfair policies in support of its potato industry. 
Specifically, Canada protects its domestic potato growers from United 
States competition through a system of nontariff trade barriers, such 
as setting container size limitations and a prohibition on bulk imports 
from the United States. This bulk import prohibition effectively blocks 
United States potato imports into Canada. At the same time, Canada 
artificially enhances the competitiveness of its product through 
domestic subsidies for potato growers.
  Another trade dispute with Canada, specifically with the province of 
New Brunswick, served as the inspiration for this legislation. In July 
1993, Canadian federal customs officials began stopping Canadians 
returning from Maine and collecting from them the 11-percent New 
Brunswick Provincial Sales Tax [PST] on goods purchased in Maine. 
Canadian Customs Officers had already been collecting the Canadian 
federal sales tax all across the United States-Canada border. The 
collection of the New Brunswick PST was specifically targeted against 
goods purchased in Maine--not on goods purchased in any of the other 
provinces bordering New Brunswick.
  After months of imploring the U.S. Trade Representative to do 
something about the imposition of the unfairly administered tax, 
Ambassador Kantor agreed that the New Brunswick PST was a violation of 
NAFTA, and that the United States would include the PST issue in the 
NAFTA dispute settlement process. But despite this explicit assurance, 
the issue was not, in fact, brought before NAFTA's dispute settlement 
process, prompting Congress last year to include an amendment I offered 
to immigration reform legislation calling for the U.S. Trade 
Representative to take this action without further delay.
  Throughout the early months of the PST dispute, we in the State of 
Maine had enormous difficulty convincing our Federal trade officials 
that the PST was in fact an international trade dispute that warranted 
their attention and action. We had no way of knowing whether problems 
similar to the PST dispute existed elsewhere along the United States-
Canada border, or whether it was a more localized problem. If a body 
like the Northern Border State Trade Council had existed when the 
collection of the PST began, it could have immediately started 
investigating the issue to determine its impact and make 
recommendations on how to deal with it.
  In short, the Northern Border States Council will serve as the eyes 
and ears of our States that share a border with Canada, and are most 
vulnerable to fluctuations in cross-border trade and traffic. The 
Council will be a tool for Federal and State trade officials to use in 
monitoring their cross-border trade. It will help ensure that national 
trade policy regarding America's largest trading partner will be 
developed and

[[Page S1024]]

implemented with an eye towards the unique opportunities and burdens 
present to the northern border States.
  The Northern Border States Council will be an advisory body, not a 
regulatory one. Its fundamental purpose will be to determine the nature 
and cause of cross-border trade issues or disputes, and to recommend 
how to resolve them.
  The duties and responsibilities of the Council will include, but not 
be limited to, providing advice and policy recommendations on such 
matters as taxation and the regulation of cross-border wholesale and 
retail trade in goods and services; taxation, regulation and 
subsidization of food, agricultural, energy, and forest-products 
commodities; and the potential for Federal and State/provincial laws 
and regulations, including customs and immigration regulations, to act 
as nontariff barriers to trade.
  As an advisory body, the Council will review and comment on all 
Federal and/or State reports, studies, and practices concerning United 
States-Canada trade, with particular emphasis on all reports from the 
dispute settlement panels established under NAFTA. These Council 
reviews will be conducted upon the request of the United States Trade 
Representative, the Secretary of Commerce, a Member of Congress from 
any Council State, or the Governor of a Council State.
  If the Council determines that the origin of a cross-border trade 
dispute resides with Canada, the Council would determine, to the best 
of its ability, if the source of the dispute is the Canadian Federal 
Government or a Canadian provincial government.
  The goal of this legislation is not to create another Federal trade 
bureaucracy. The Council will be made up of individuals nominated by 
the Governors and approved by the Secretary of Commerce. Each northern 
border State will have two members on the Council. The Council members 
will be unpaid, and serve a 2-year term.
  The Northern Border States Council on United States-Canada Trade will 
not solve all of our trade problems with Canada. But it will ensure 
that the voices and views of our northern border States are heard in 
Washington by our Federal trade officials. For too long their voices 
were ignored, and the northern border States have had to suffer severe 
economic consequences at times because of it. This legislation will 
bring our States into their rightful position as full partners in 
issues that affect cross-border trade and traffic with our country's 
largest trading partner.
  I urge my colleagues to join me in supporting this important 
legislation. Mr. President, 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. 274

       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 ``Northern Border States 
     Council Act''.

     SEC. 2. ESTABLISHMENT OF COUNCIL.

       (a) Establishment.--There is established a council to be 
     known as the Northern Border States-Canada Trade Council 
     (hereafter in this Act referred to as the ``Council'').
       (b) Membership.--
       (1) Composition.--The Council shall be composed of 24 
     members consisting of 2 members from each of the following 
     States:
       (A) Maine.
       (B) New Hampshire.
       (C) Vermont.
       (D) New York.
       (E) Michigan.
       (F) Minnesota.
       (G) Wisconsin.
       (H) North Dakota.
       (I) Montana.
       (J) Idaho.
       (K) Washington.
       (L) Alaska.
       (2) Appointment by state governors.--Not later than 6 
     months after the date of the enactment of this Act, the 
     Secretary of Commerce (hereafter in this Act referred to as 
     the ``Secretary'') shall appoint 2 members from each of the 
     States described in paragraph (1) to serve on the Council. 
     The appointments shall be made from the list of nominees 
     submitted by the Governor of each such State.
       (c) Period of Appointment; Vacancies.--Members shall be 
     appointed for terms that are coterminous with the term of the 
     Governor of the State who nominated the member. Any vacancy 
     in the Council shall not affect its powers, but shall be 
     filled in the same manner as the original appointment.
       (d) Initial Meeting.--Not later than 30 days after the date 
     on which all members of the Council have been appointed, the 
     Council shall hold its first meeting.
       (e) Meetings.--The Council shall meet at the call of the 
     Chairperson.
       (f) Quorum.--A majority of the members of the Council shall 
     constitute a quorum, but a lesser number of members may hold 
     hearings.
       (g) Chairperson and Vice Chairperson.--The Council shall 
     select a Chairperson and Vice Chairperson from among its 
     members. The Chairperson and Vice Chairperson shall each 
     serve in their respective positions for a period of 2 years, 
     unless such member's term is terminated before the end of the 
     2-year period.

     SEC. 3. DUTIES OF THE COUNCIL.

       (a) In General.--The duties and responsibilities of the 
     Council shall include--
       (1) advising the President, the Congress, the United States 
     Trade Representative, the Secretary, and other appropriate 
     Federal and State officials, with respect to--
       (A) the development and administration of United States-
     Canada trade policies, practices, and relations,
       (B) taxation and regulation of cross-border wholesale and 
     retail trade in goods and services between the United States 
     and Canada,
       (C) taxation, regulation, and subsidization of agricultural 
     products, energy products, and forest products, and
       (D) the potential for any United States or Canadian customs 
     or immigration law or policy to result in a barrier to trade 
     between the United States and Canada,
       (2) monitoring the nature and cause of trade issues and 
     disputes that involve one of the Council-member States and 
     either the Canadian Government or one of the provincial 
     governments of Canada; and
       (3) if the Council determines that a Council-member State 
     is involved in a trade issue or dispute with the Government 
     of Canada or one of the provincial governments of Canada, 
     making recommendations to the President, the Congress, the 
     United States Trade Representative, and the Secretary 
     concerning how to resolve the issue or dispute.
       (b) Response to Requests by Certain People.--
       (1) In general.--Upon the request of the United States 
     Trade Representative, the Secretary, a Member of Congress who 
     represents a Council-member State, or the Governor of a 
     Council-member State, the Council shall review and comment 
     on--
       (A) reports of the Federal Government and reports of a 
     Council-member State government concerning United States-
     Canada trade,
       (B) reports of a binational panel or review established 
     pursuant to chapter 19 of the North American Free Trade 
     Agreement concerning the settlement of a dispute between the 
     United States and Canada,
       (C) reports of an arbitral panel established pursuant to 
     chapter 20 of the North American Free Trade Agreement 
     concerning the settlement of a dispute between the United 
     States and Canada, and
       (D) reports of a panel or Appellate Body established 
     pursuant to the General Agreement on Tariffs and Trade 
     concerning the settlement of a dispute between the United 
     States and Canada.
       (2) Determination of scope.--Among other issues, the 
     Council shall determine whether a trade dispute between the 
     United States and Canada is the result of action or inaction 
     on the part of the Federal Government of Canada or a 
     provincial government of Canada.
       (c) Council-Member State.--For purposes of this section, 
     the term ``Council-member State'' means a State described in 
     section 2(b)(1) which is represented on the Council 
     established under section 2(a).

     SEC. 4. REPORT TO CONGRESS.

       Not later than 2 years after the date of the enactment of 
     this Act and at the end of each 2-year period thereafter, the 
     Council shall submit a report to the President and the 
     Congress which contains a detailed statement of the findings, 
     conclusions, and recommendations of the Council.

     SEC. 5. POWERS OF THE COUNCIL.

       (a) Hearings.--The Council may hold such hearings, sit and 
     act at such times and places, take such testimony, and 
     receive such evidence as the Council considers advisable to 
     carry out the provisions of this Act. Notice of Council 
     hearings shall be published in the Federal Register in a 
     timely manner.
       (b) Information From Federal Agencies.--The Council may 
     secure directly from any Federal department or agency such 
     information as the Council considers necessary to carry out 
     the provisions of this Act. Upon the request of the 
     Chairperson of the Council, the head of such department or 
     agency shall furnish such information to the Council.
       (c) Postal Services.--The Council may use the United States 
     mails in the same manner and under the same conditions as 
     other departments and agencies of the Federal Government.
       (d) Gifts.--The Council may accept, use, and dispose of 
     gifts or donations of services or property.

     SEC. 6. COUNCIL PERSONNEL MATTERS.

       (a) Members To Serve Without Compensation.--Except as 
     provided in subsection (b), members of the Council shall 
     receive no compensation, allowances, or benefits by reason of 
     service to the Council.
       (b) Travel Expenses.--The members of the Council shall be 
     allowed travel expenses,

[[Page S1025]]

     including per diem in lieu of subsistence, at rates 
     authorized for employees of agencies under subchapter I of 
     chapter 57 of title 5, United States Code, while away from 
     their homes or regular places of business in the performance 
     of services for the Council.
       (c) Staff.--
       (1) In general.--The Chairperson of the Council may, 
     without regard to the civil service laws, appoint and 
     terminate an executive director and such other additional 
     personnel as may be necessary to enable the Council to 
     perform its duties. The employment of an executive director 
     shall be subject to confirmation by the Council and the 
     Secretary.
       (2) Compensation.--The Chairperson of the Council may fix 
     the compensation of the executive director and other 
     personnel without regard to the provisions of chapter 51 and 
     subchapter III of chapter 53 of title 5, United States Code, 
     relating to classification of positions and General Schedule 
     pay rates, except that the rate of pay for the executive 
     director and other personnel may not exceed the rate payable 
     for level V of the Executive Schedule under section 5316 of 
     such title.
       (d) Detail of Government Employees.--Any Federal Government 
     employee may be detailed to the Council without 
     reimbursement, and such detail shall be without interruption 
     or loss of civil service status or privilege.
       (e) Procurement of Temporary and Intermittent Services.--
     The Chairperson of the Council may procure temporary and 
     intermittent services under section 3109(b) of title 5, 
     United States Code, at rates for individuals which do not 
     exceed the daily equivalent of the annual rate of basic pay 
     prescribed for level V of the Executive Schedule under 
     section 5316 of such title.
       (f) Office Space.--The Secretary shall provide office space 
     for Council activities and for Council personnel.

     SEC. 7. TERMINATION OF THE COUNCIL.

       The Council shall terminate on the date that is 54 months 
     after the date of the enactment of this Act and shall submit 
     a final report to the President and the Congress under 
     section 4 at least 90 days before such termination.

     SEC. 8. AUTHORIZATION OF APPROPRIATIONS.

       (a) In General.--There are authorized to be appropriated 
     from amounts made available by appropriations to the 
     Department of Commerce an amount not to exceed $250,000 for 
     fiscal year 1996 and for each fiscal year thereafter to the 
     Council to carry out the provisions of this Act.
       (b) Availability.--Any sums appropriated under the 
     authorization contained in this section shall remain 
     available, without fiscal year limitation, until 
     expended.
                                 ______