[Congressional Record Volume 143, Number 155 (Friday, November 7, 1997)]
[Senate]
[Pages S11998-S12003]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. LUGAR (for himself, Mr. Hagel, Mr. Roberts, Mr. Thomas, 
        Mr. Grams, Mr. Kerrey, Mrs. Feinstein, and Mr. Chafee):
  S. 1413. A bill to provide a framework for consideration by the 
legislative and executive branches of unilateral economic sanctions; to 
the Committee on Foreign Relations.


THE ENHANCEMENT OF TRADE, SECURITY, AND HUMAN RIGHTS THROUGH SANCTIONS 
                               REFORM ACT

  Mr. LUGAR. Mr. President, I rise to introduce the Enhancement of 
Trade, Security, and Human Rights Through Sanctions Reform Act, a bill 
that will establish a more deliberative, commonsense approach to U.S. 
sanctions policy. I'm pleased to be joined by several distinguished 
colleagues, in introducing this important piece of legislation.
  In recent years, there has been a proliferation in the use of 
unilateral economic sanctions as a tool of American foreign policy. 
While unilateral sanctions may be a low cost alternative to the 
deployment of American Armed Forces abroad--or to milder, less coercive 
choices--they almost never succeed in achieving their foreign policy 
objectives. They frequently impose a greater burden on American 
companies, producers, farmers, and workers than on the intended target 
country.
  A cardinal test of foreign policy is that when we act 
internationally, our actions should do less harm to ourselves than to 
others. Unilateral economic sanctions, unfortunately, often fail this 
crucial test.
  Mr. President, there have been a large number of studies on 
unilateral economic sanctions in recent years and they provide some 
interesting results. Manufacturers revealed that in the period 1993 to 
1996, the United States imposed unilateral sanctions to achieve foreign 
policy goals 61 times in 35 different countries. Last year, the report 
of the President's Export Council cited 75 countries representing 52 
percent of the world's population that have been subject to or 
threatened by U.S. unilateral economic sanctions.
  These actions have jeopardized billions in export earnings and 
hundreds of thousands of American jobs, while weakening our ability to 
provide humanitarian assistance abroad. In another study, the Institute 
for International Economics concluded that, in 1995 alone, economic 
sanctions cost U.S. exports--to 26 countries--between $15-19 billion, 
and eliminated upwards to 200,000 U.S. jobs, many in high wage export 
sector.
  The damage to the U.S. economy can have long-term consequences. Once 
foreign competitors establish a presence in international markets 
abandoned by the United States, the potential losses begin to magnify. 
Over time, the cumulative effect of sanctions will be a loss of 
commercial contracts, but more importantly, may be a loss of confidence 
in American suppliers and in the United States as a reliable partner to 
do business. Frequent resort to economic sanctions, however, 
meritorious they may be, runs the risk of weakening the export sector 
which has contributed so greatly to our economic prosperity. This 
weakening effect can, in turn, have an adverse effect on our political 
influence abroad.

  The major difficulty with our increased use of unilateral economic 
sanctions is that they rarely achieve the foreign policy goals they are 
intended to achieve. Sanctions frequently give the illusion of action 
by substituting for more decisive action or by serving as a palliative 
for those who demand that some action be taken--any action--by the 
United States against another country with whom we have a disagreement.
  Sanctions can also make it more difficult diplomatically to engage 
foreign governments in dialogue to help bring about a political opening 
or a change in behavior. Serious trade sanctions can, in fact, inhibit, 
rather than facilitate, constructive dialogue with others.
  As a nation, we often seek instant gratification or quick results 
from our actions. Sanctions, however, take a long time to work and the 
change in behavior we seek in other countries will most often take 
place incrementally over time. In some cases, our sanctions have the 
unintended consequences of providing authoritarian leaders a basis for 
increasing their political support and rally opposition to the United 
States because our sanctions can be used to divert popular anger and 
resentment away from their own mis-deeds and mis-rule.
  Unilateral sanctions almost never help those we want to assist, they 
frequently harm the United States more than the sanctioned country and 
undermine our international economic

[[Page S11999]]

competitiveness and economic security. Most regrettably, unilateral 
sanctions have become a policy of first choice when other policy 
alternatives exist.
  Nonetheless, some economic sanctions are effective and, therefore, 
must remain a tool of American foreign policy. Multilateral, unlike 
unilateral, sanctions have frequently advanced American national 
interests. The multilateral sanctions against Saddam Hussein following 
Iraq's aggression against Kuwait have slowed down Iraq's weapons of 
mass destruction program. Similarly, international sanctions aimed at 
Serbia and the Federal Republic of Yugoslavia functioned to isolate 
them diplomatically and protect United States and allied interests in 
the Balkans. The international sanctions against apartheid in South 
Africa in the 1980's had a significant influence on bringing about a 
nonviolent peaceful transition in that country.
  Finally, the broad consensus to oppose Soviet expansion through 
export restraints on East-West trade in the Coordinating Committee, or 
CoCom, proved to be enormously effective. Most economic sanctions, 
whether unilateral or multilateral, must be in place for a long time 
before they are effective and their success will almost always be 
dependent upon extensive multilateral cooperation and compliance.
  Nothing in our proposed legislation prohibits unilateral economic 
sanctions. There are situations where other foreign policy options have 
been exhausted and where the actions of others are so outrageous or so 
threatening to the United States and our national interests that our 
response, short of the use of force, must be firm and unambiguous. In 
such instances, economic sanctions may be a useful instrument of 
American foreign policy.
  Mr. President, my proposed legislation is prospective. It will not 
affect existing U.S. sanctions. It will apply only to unilateral 
sanctions and to those sanctions intended to achieve foreign policy or 
national security objectives. It would exclude, by definition, U.S. 
trade laws, Jackson-Vanik and munitions list controls. It would not 
address the complex and important issue of state and local sanctions 
designed to achieve foreign policy goals, although these so-called 
vertical sanctions are increasingly important features of American 
foreign policy.
  More specifically, Mr. President, this legislation seeks to establish 
clear guidelines and informational requirements to help us understand 
better the likely consequences of our actions before we opt to impose 
economic sanctions. We should know in advance of voting on sanctions 
legislation what our goals are, the anticipated economic, political and 
humanitarian benefits and costs to the United States and 
other countries, the possible impact on our reputation as a reliable 
supplier, the other policy options that have been explored, and whether 
the proposed sanctions are likely to contribute to achieving the 
foreign policy objectives sought by legislation. Comparable 
requirements are also in the bill for sanctions mandated by the 
executive branch.

  Once sanctions are implemented, the bill also requires an annual 
report from the President detailing the degree to which sanctions have 
accomplished U.S. goals, as well as their impact on our economic, 
political and humanitarian interests, including our relations with 
other countries.
  The bill also provides for more active and timely consultations 
between Congress and the President. It provides Presidential waiver 
authority in emergencies or if he determines it is in the national 
interest.
  It includes a sunset provision that would terminate unilateral 
economic sanctions after 2 years duration unless the Congress or the 
President acts to reauthorize them.
  It includes language on contract sanctity to help ensure the United 
States is a reliable supplier.
  It identifies U.S. agriculture as an especially vulnerable sector of 
our economy that has borne a disproportionate burden stemming from U.S. 
economic sanctions. Because of this, there is discretionary authority 
for agricultural assistance in the bill. In addition, the bill opposes 
agricultural embargoes as a foreign policy weapon and urges that 
economic sanctions be targeted as narrowly as possible in order to 
minimize harm to innocent people and humanitarian activities.
  Mr. President, my sanctions reform bill represents an attempt to 
develop an improved and comprehensive approach to an important foreign 
policy issue. We, in the Congress, are often called upon to make 
difficult choices between conflicting interests or among our core 
values as a nation and our international interests.
  These are frequently hard choices that should be given careful 
attention and preceded by careful analysis. We should never turn our 
back on our fundamental values of supporting democracy, human rights, 
and basic freedoms abroad but we should ask whether we can alter the 
behavior of other countries by imposing sanctions on them. Many times 
we cannot do so and many times we exacerbate the very behavior we hope 
to reverse. There is no magic formula for influencing the behavior of 
other countries, but unilateral economic sanctions are rarely the 
answer.
  Nothing in this bill prevents the imposition of U.S. unilateral 
economic sanctions or dictates a particular trade-off between American 
core values and our commercial and other interests. The steps detailed 
in this bill provide for better policy procedures so that consideration 
of economic sanctions are preceded by a more deliberative process by 
which the President and the Congress can make reasoned and balanced 
choices affecting the totality of American values and interests.
  Mr. President, I feel strongly about this issue. I hope my colleagues 
will join the other original cosponsors by taking a close look at this 
legislation. I welcome their support and believe that if we deal with 
the sanctions issues in a careful and systematic manner, we can make a 
significant positive contribution to our national interest.
  Mr. President, I ask unanimous consent that additional material be 
printed in the Record.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

                                S. 1413

       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 ``Enhancement of Trade, 
     Security, and Human Rights through Sanctions Reform Act''.

     SEC. 2. PURPOSE.

       It is the purpose of this Act to establish an effective 
     framework for consideration by the legislative and executive 
     branches of unilateral economic sanctions.

     SEC. 3. STATEMENT OF POLICY.

       It is the policy of the United States--
       (1) to pursue United States interests through vigorous and 
     effective diplomatic, political, commercial, charitable, 
     educational, cultural, and strategic engagement with other 
     countries, while recognizing that the national security 
     interests of the United States may sometimes require the 
     imposition of economic sanctions on other countries;
       (2) to foster multilateral cooperation on vital matters of 
     United States foreign policy, including promoting human 
     rights and democracy, combating international terrorism, 
     proliferation of weapons of mass destruction, and 
     international narcotics trafficking, and ensuring adequate 
     environmental protection;
       (3) to promote United States economic growth and job 
     creation by expanding exports of goods, services, and 
     agricultural commodities, and by encouraging investment that 
     supports the sale abroad of products and services of the 
     United States;
       (4) to maintain the reputation of United States businesses 
     and farmers as reliable suppliers to international customers 
     of quality products and services, including United States 
     manufactures, technology products, financial services, and 
     agricultural commodities;
       (5) to avoid the use of restrictions on exports of 
     agricultural commodities as a foreign policy weapon;
       (6) to oppose policies of other countries designed to 
     discourage economic interaction with countries friendly to 
     the United States or with any United States national, and to 
     avoid use of such measures as instruments of United States 
     foreign policy; and
       (7) when economic sanctions are necessary--
       (A) to target them as narrowly as possible on those foreign 
     governments, entities, and officials that are responsible for 
     the conduct being targeted, thereby minimizing unnecessary or 
     disproportionate harm to individuals who are not responsible 
     for such conduct; and
       (B) to the extent feasible, to avoid any adverse impact of 
     economic sanctions on the humanitarian activities of United 
     States and foreign nongovernmental organizations in a country 
     against which sanctions are imposed.

[[Page S12000]]

     SEC. 4. DEFINITIONS.

       As used in this Act:
       (1) Unilateral economic sanction.--
       (A) In general.--The term ``unilateral economic sanction'' 
     means any restriction or condition on economic activity with 
     respect to a foreign country or foreign entity that is 
     imposed by the United States for reasons of foreign policy or 
     national security, including any of the measures described in 
     subparagraph (B), except in a case in which the United States 
     imposes the measure pursuant to a multilateral regime and the 
     other members of that regime have agreed to impose 
     substantially equivalent measures.
       (B) Particular measures.--The measures referred to in 
     subparagraph (A) are the following:
       (i) The suspension, restriction, or prohibition of exports 
     or imports of any product, technology, or service to or from 
     a foreign country or entity.
       (ii) The suspension of, or any restriction or prohibition 
     on, financial transactions with a foreign country or entity.
       (iii) The suspension of, or any restriction or prohibition 
     on, direct or indirect investment in or from a foreign 
     country or entity.
       (iv) The imposition of increased tariffs on, or other 
     restrictions on imports of, products of a foreign country or 
     entity, including the denial, revocation, or conditioning of 
     nondiscriminatory (most-favored-nation) trade treatment.
       (v) The suspension of, or any restriction or prohibition 
     on--

       (I) the authority of the Export-Import Bank of the United 
     States to give approval to the issuance of any guarantee, 
     insurance, or extension of credit in connection with the 
     export of goods or services to a foreign country or entity;
       (II) the authority of the Trade and Development Agency to 
     provide assistance in connection with projects in a foreign 
     country or in which a particular foreign entity participates; 
     or
       (III) the authority of the Overseas Private Investment 
     Corporation to provide insurance, reinsurance, financing, or 
     conduct other activities in connection with projects in a 
     foreign country or in which a particular foreign entity 
     participates.

       (vi) A requirement that the United States representative to 
     an international financial institution vote against any loan 
     or other utilization of funds to, for, or in a foreign 
     country or particular foreign entity.
       (vii) A measure imposing any restriction or condition on 
     economic activity on any foreign government or entity on the 
     ground that such government or entity does business in or 
     with a foreign country.
       (viii) A measure imposing any restriction or condition on 
     economic activity on any person that is a national of a 
     foreign country, or on any government or other entity of a 
     foreign country, on the ground that the government of that 
     country has not taken measures in cooperation with, or 
     similar to, sanctions imposed by the United States on a third 
     country.
       (ix) The suspension of, or any restriction or prohibition 
     on, travel rights or air transportation to or from a foreign 
     country.
       (x) Any restriction on the filing or maintenance in a 
     foreign country of any proprietary interest in intellectual 
     property rights (including patents, copyrights, and 
     trademarks), including payment of patent maintenance fees.
       (C) Multilateral regime.--As used in this paragraph, the 
     term ``multilateral regime'' means an agreement, arrangement, 
     or obligation under which the United States cooperates with 
     other countries in restricting commerce for reasons of 
     foreign policy or national security, including--
       (i) obligations under resolutions of the United Nations;
       (ii) nonproliferation and export control arrangements, such 
     as the Australia Group, the Nuclear Supplier's Group, the 
     Missile Technology Control Regime, and the Wassenaar 
     Arrangement;
       (iii) treaty obligations, such as under the Chemical 
     Weapons Convention, the Treaty on the Non-Proliferation of 
     Nuclear Weapons, and the Biological Weapons Convention; and
       (iv) agreements concerning protection of the environment, 
     such as the International Convention for the Conservation of 
     Atlantic Tunas, the Declaration of Panama referred to in 
     section 2(a)(1) of the International Dolphin Conservation Act 
     (16 U.S.C. 1361 note), the Convention on International Trade 
     in Endangered Species, the Montreal Protocol on Substances 
     that Deplete the Ozone Layer, and the Basel Convention on the 
     Control of Transboundary Movements of Hazardous Wastes.
       (D) Financial transaction.--As used in this paragraph, the 
     term ``financial transaction'' has the meaning given that 
     term in section 1956(c)(4) of title 18, United States Code.
       (E) Investment.--As used in this paragraph, the term 
     ``investment'' means any contribution or commitment of funds, 
     commodities, services, patents, or other forms of 
     intellectual property, processes, or techniques, including--
       (i) a loan or loans;
       (ii) the purchase of a share of ownership;
       (iii) participation in royalties, earnings, or profits; and
       (iv) the furnishing or commodities or services pursuant to 
     a lease or other contract.
       (F) Exclusions.--The term ``unilateral economic sanction'' 
     does not include--
       (i) any measure imposed to remedy unfair trade practices or 
     to enforce United States rights under a trade agreement, 
     including under section 337 of the Tariff Act of 1930, title 
     VII of that Act, title III of the Trade Act of 1974, sections 
     1374 and 1377 of the Omnibus Trade and Competitiveness Act of 
     1988 (19 U.S.C. 3103 and 3106), and section 3 of the Act of 
     March 3, 1933 (41 U.S.C. 10b-1);
       (ii) any measure imposed to remedy market disruption or to 
     respond to injury to a domestic industry for which increased 
     imports are a substantial cause or threat thereof, including 
     remedies under sections 201 and 406 of the Trade Act of 1974, 
     and textile import restrictions (including those imposed 
     under section 204 of the Agricultural Act of 1956 (7 U.S.C. 
     1784));
       (iii) any action taken under title IV of the Trade Act of 
     1974, including the enactment of a joint resolution under 
     section 402(d)(2) of that Act;
       (iv) any measure imposed to restrict imports of 
     agricultural commodities to protect food safety or to ensure 
     the orderly marketing of commodities in the United States, 
     including actions taken under section 22 of the Agricultural 
     Adjustment Act (7 U.S.C. 624);
       (v) any measure imposed to restrict imports of any other 
     products in order to protect domestic health or safety;
       (vi) any measure authorized by, or imposed under, a 
     multilateral or bilateral trade agreement to which the United 
     States is a signatory, including the Uruguay Round 
     Agreements, the North American Free Trade Agreement, the 
     United States-Israel Free Trade Agreement, and the United 
     States-Canada Free Trade Agreement; and
       (vii) any export control imposed on any item on the United 
     States Munitions List.
       (2) National emergency.--The term ``national emergency'' 
     means any unusual or extraordinary threat, which has its 
     source in whole or substantial part outside the United 
     States, to the national security, foreign policy, or economy 
     of the United States.
       (3) Agricultural commodity.--The term ``agricultural 
     commodity'' has the meaning given that term in section 102(1) 
     of the Agricultural Trade Act of 1978 (7 U.S.C. 5602(1)).
       (4) Appropriate committees.--The term ``appropriate 
     committees'' means the Committee on Agriculture, the 
     Committee on International Relations, the Committee on Ways 
     and Means, and the Committee on Banking and Financial 
     Services of the House of Representatives, and the Committee 
     on Agriculture, Nutrition, and Forestry, the Committee on 
     Finance, and the Committee on Foreign Relations of the 
     Senate.
       (5) Contract sanctity.--The term ``contract sanctity'', 
     with respect to a unilateral economic sanction, refers to the 
     inapplicability of the sanction to--
       (A) a contract or agreement entered into before the 
     sanction is imposed, or to a valid export license or other 
     authorization to export; and
       (B) actions taken to enforce the right to maintain 
     intellectual property rights, in the foreign country against 
     which the sanction is imposed, which existed before the 
     imposition of the sanction.

     SEC. 5. GUIDELINES FOR UNILATERAL ECONOMIC SANCTIONS 
                   LEGISLATION.

       Any bill or joint resolution that imposes any unilateral 
     economic sanction, or authorizes the imposition of any 
     unilateral economic sanction by the executive branch, and is 
     considered by the House of Representatives or the Senate, 
     should--
       (1) state the foreign policy or national security objective 
     or objectives of the United States that the economic sanction 
     is intended to achieve;
       (2) provide that the economic sanction terminate 2 years 
     after it is imposed, unless specifically reauthorized by 
     Congress;
       (3) provide for contract sanctity;
       (4) provide authority for the President both to adjust the 
     timing and scope of the sanction and to waive the sanction, 
     if the President determines it is in the national interest to 
     do so;
       (5)(A) target the sanction as narrowly as possible on 
     foreign governments, entities, and officials that are 
     responsible for the conduct being targeted; and
       (B) seek to minimize any adverse impact on the humanitarian 
     activities of United States and foreign nongovernmental 
     organizations in any country against which the sanction may 
     be imposed; and
       (6) provide, to the extent that the Secretary of 
     Agriculture or the Congressional Budget Office finds that--
       (A) the proposed sanction is likely to restrict exports of 
     any agricultural commodity or is likely to result in 
     retaliation against exports of any agricultural commodity 
     from the United States, and
       (B) the sanction is proposed to be imposed, or is likely to 
     be imposed, on a country or countries that constituted, in 
     the preceding calendar year, the market for more than 3 
     percent of all export sales from the United States of an 
     agricultural commodity,

     that the Secretary of Agriculture expand agricultural export 
     assistance under United States market development, food 
     assistance, or export promotion programs to offset the likely 
     damage to incomes of producers of the affected agricultural 
     commodity or commodities, to the maximum extent permitted by 
     the obligations of the United States under the Agreement on 
     Agriculture referred to in section 101(d)(2) of the Uruguay 
     Round Agreements Act (19 U.S.C. 3511(d)(2)).

[[Page S12001]]

     SEC. 6. REQUIREMENTS FOR BILL OR JOINT RESOLUTION.

       (a) Public Comment.--Before considering a bill or joint 
     resolution that imposes any unilateral economic sanction, or 
     authorizes the imposition of any unilateral economic sanction 
     by the executive branch, the committee of primary 
     jurisdiction shall publish a notice which provides an 
     opportunity for interested members of the public to submit 
     comments to the committee on the proposed sanction.
       (b) When Reports Requested.--The committee of primary 
     jurisdiction that orders reported a bill or joint resolution 
     described in section 5 shall timely request from the 
     President and the Secretary of Agriculture the reports 
     identified in subsection (c). Each such report that has been 
     timely submitted prior to the filing of the committee report 
     accompanying the bill or joint resolution shall be included 
     in the committee report. The committee report shall also 
     contain, if the bill or joint resolution does not meet any of 
     the guidelines specified in paragraphs (1) through (6) of 
     section 5, an explanation of why it does not.
       (c) Reports.--
       (1) Report by the president.--The President's report to 
     Congress under subsection (b) shall contain--
       (A) an assessment of--
       (i) the likelihood that the proposed unilateral economic 
     sanction will achieve its stated objective within a 
     reasonable period of time; and
       (ii) the impact of the proposed unilateral economic 
     sanction on--

       (I) humanitarian conditions, including the impact on 
     conditions in any specific countries on which the sanction is 
     proposed to be or may be imposed;
       (II) humanitarian activities of United States and foreign 
     nongovernmental organizations;
       (III) relations with United States allies;
       (IV) other United States national security and foreign 
     policy interests; and
       (V) countries and entities other than those on which the 
     sanction is proposed to be or may be imposed;

       (B) a description and assessment of--
       (i) diplomatic and other steps the United States has taken 
     to accomplish the intended objectives of the unilateral 
     sanction legislation;
       (ii) the likelihood of multilateral adoption of comparable 
     measures;
       (iii) comparable measures undertaken by other countries;
       (iv) alternative measures to promote the same objectives, 
     and an assessment of their potential effectiveness;
       (v) any obligations of the United States under 
     international treaties or trade agreements with which the 
     proposed sanction may conflict;
       (vi) the likelihood that the proposed sanction will lead to 
     retaliation against United States interests, including 
     agricultural interests; and
       (vii) whether the achievement of the objectives of the 
     proposed sanction outweighs any likely costs to United States 
     foreign policy, national security, economic, and humanitarian 
     interests, including any potential harm to United States 
     business, agriculture, and consumers, and any potential harm 
     to the international reputation of the United States as a 
     reliable supplier of products, technology, agricultural 
     commodities, and services.
       (2) Report by the secretary of agriculture.--The Secretary 
     of Agriculture shall submit to the appropriate committees a 
     report which shall contain an assessment of--
       (A) the extent to which any country or countries proposed 
     to be sanctioned or likely to be sanctioned are markets that 
     accounted for, in the preceding calendar year, more than 3 
     percent of all export sales from the United States of any 
     agricultural commodity;
       (B) the likelihood that exports of agricultural commodities 
     from the United States will be affected by the proposed 
     sanction or by retaliation by any country proposed to be 
     sanctioned or likely to be sanctioned, and specific 
     commodities which are most likely to be affected;
       (C) the likely effect on incomes of producers of the 
     specific commodities identified by the Secretary;
       (D) the extent to which the proposed sanction would permit 
     foreign suppliers to replace United States suppliers; and
       (E) the likely effect of the proposed sanction on the 
     reputation of United States farmers as reliable suppliers of 
     agricultural commodities in general, and of the specific 
     commodities identified by the Secretary.
       (3) Federal private sector mandate.--
       (A) In general.--Any bill or joint resolution that imposes 
     any unilateral economic sanction described in section 5 shall 
     be considered to include a Federal private sector mandate for 
     purposes of part B of title IV of the Congressional Budget 
     Act of 1974.
       (B) Report by the congressional budget office.--The report 
     by the Congressional Budget Office pursuant to subparagraph 
     (A) shall include an assessment of the likely short-term and 
     long-term costs of the proposed sanction to the United States 
     economy, including the potential impact on United States 
     trade performance, employment, and growth, the international 
     reputation of the United States as a reliable supplier of 
     products, agricultural commodities, technology, and services, 
     and the economic well-being and international competitive 
     position of United States industries, firms, workers, 
     farmers, and communities.

     SEC. 7. REQUIREMENTS FOR EXECUTIVE ACTION.

       (a) In General.--The President may implement a unilateral 
     economic sanction under any provision of law not less than 60 
     days after announcing his intention to do so.
       (b) Consultation.--The President shall consult with the 
     appropriate committees regarding the proposed unilateral 
     economic sanction, including consultations regarding efforts 
     to achieve or increase multilateral cooperation on the issues 
     or problems prompting the proposed sanction.
       (c) Public Hearings; Record.--The President shall publish a 
     notice in the Federal Register of the opportunity for 
     interested persons to submit comments on the proposed 
     unilateral economic sanction.
       (d) Guidelines for Executive Branch Sanctions.--Any 
     unilateral economic sanction imposed by the President--
       (1) shall--
       (A) include a clear finding that the sanction is likely to 
     achieve a specific United States foreign policy or national 
     security objective within a reasonable period of time, which 
     shall be specified, and that the achievement of the 
     objectives of the sanction outweighs any costs to United 
     States national interests;
       (B) provide for contract sanctity;
       (C) terminate not later than 2 years after the sanction is 
     imposed, unless specifically extended by the President in 
     accordance with the procedures of this section;
       (D)(i) be targeted as narrowly as possible on foreign 
     governments, entities, and officials that are responsible for 
     the conduct being targeted; and
       (ii) seek to minimize any adverse impact on the 
     humanitarian activities of United States and foreign 
     nongovernmental organizations in a country against which the 
     sanction may be imposed; and
       (2) should provide, to the extent that the Secretary of 
     Agriculture finds that--
       (A) a unilateral economic sanction is likely to restrict 
     exports of any agricultural commodity from the United States 
     or is likely to risk retaliation against exports of any 
     agricultural commodity from the United States, and
       (B) the sanction is proposed to be imposed, or is likely to 
     be imposed, on a country or countries that constituted, in 
     the preceding calendar year, the market for more than 3 
     percent of all export sales from the United States of an 
     agricultural commodity,

     that the Secretary of Agriculture expand agricultural export 
     assistance under United States market development, food 
     assistance, or export promotion programs to offset the likely 
     damage to incomes of producers of the affected agricultural 
     commodity or commodities, to the maximum extent permitted by 
     law and by the obligations of the United States under the 
     Agreement on Agriculture referred to in section 101(d)(2) of 
     the Uruguay Round Agreements Act (19 U.S.C. 3511(d)(2)).
       (e) Report by the President.--Prior to imposing any 
     unilateral economic sanction, the President shall provide a 
     report to the appropriate committees on the proposed 
     sanction. The report shall include the report of the 
     International Trade Commission under subsection (g) (if 
     timely submitted prior to the filing of the report). The 
     President's report shall contain the following:
       (1) An explanation of the foreign policy or national 
     security objective or objectives intended to be achieved 
     through the proposed sanction.
       (2) An assessment of--
       (A) the likelihood that the proposed unilateral economic 
     sanction will achieve its stated objectives within the stated 
     period of time; and
       (B) the impact of the proposed unilateral economic sanction 
     on--
       (i) humanitarian conditions, including the impact on 
     conditions in any specific countries on which the sanctions 
     are proposed to be imposed;
       (ii) humanitarian activities of United States and foreign 
     nongovernmental organizations;
       (iii) relations with United States allies;
       (iv) other United States national security and foreign 
     policy interests; and
       (v) countries and entities other than those on which the 
     sanction is proposed to be imposed.
       (3) A description and assessment of--
       (A) diplomatic and other steps the United States has taken 
     to accomplish the intended objectives of the proposed 
     sanction;
       (B) the likelihood of multilateral adoption of comparable 
     measures;
       (C) comparable measures undertaken by other countries;
       (D) alternative measures to promote the same objectives, 
     and an assessment of their potential effectiveness;
       (E) any obligations of the United States under 
     international treaties or trade agreements with which the 
     proposed sanction may conflict;
       (F) the likelihood that the proposed sanction will lead to 
     retaliation against United States interests, including 
     agricultural interests; and
       (G) whether the achievement of the objectives of the 
     proposed sanction outweighs any likely costs to United States 
     foreign policy, national security, economic, and humanitarian 
     interests, including any potential harm to United States 
     business, agriculture, and consumers, and any potential harm 
     to the international reputation of the United States as a 
     reliable supplier of products, technology, agricultural 
     commodities, and services.

[[Page S12002]]

       (f) Report by the Secretary of Agriculture.--Prior to the 
     imposition of a unilateral economic sanction by the 
     President, the Secretary of Agriculture shall submit to the 
     appropriate committees a report which shall contain an 
     assessment of--
       (1) the extent to which any country or countries proposed 
     to be sanctioned are markets that accounted for, in the 
     preceding calendar year, more than 3 percent of all export 
     sales from the United States of any agricultural commodity;
       (2) the likelihood that exports of agricultural commodities 
     from the United States will be affected by the proposed 
     sanction or by retaliation by any country proposed to be 
     sanctioned, including specific commodities which are most 
     likely to be affected;
       (3) the likely effect on incomes of producers of the 
     specific commodities identified by the Secretary;
       (4) the extent to which the proposed sanction would permit 
     foreign suppliers to replace United States suppliers; and
       (5) the likely effect of the prosed sanction on the 
     reputation of United States farmers as reliable suppliers of 
     agricultural commodities in general, and of the specific 
     commodities identified by the Secretary.
       (g) Report by the United States International Trade 
     Commission.--Before imposing a unilateral economic sanction, 
     the President shall make a timely request to the United 
     States International Trade Commission for a report on the 
     likely short-term and long-term costs of the proposed 
     sanction to the United States economy, including the 
     potential impact on United States trade performance, 
     employment, and growth, the international reputation of the 
     United States as a reliable supplier of products, 
     agricultural commodities, technology, and services, and the 
     economic well-being and international competitive position of 
     United States industries, firms, workers, farmers, and 
     communities.
       (h) Waiver in Case of National Emergency.--The President 
     may waive any of the requirements of subsections (a), (b), 
     (c), (e), (f), and (g), in the event that the President 
     determines that there exists a national emergency that 
     requires the exercise of the waiver. In the event of such a 
     waiver, the requirements waived shall be met during the 60-
     day period immediately following the imposition of the 
     unilateral economic sanction, and the sanction shall 
     terminate 90 days after being imposed unless such 
     requirements are met. The President may waive any of the 
     requirements of paragraphs (1)(B), (1)(D), and (2) of 
     subsection (d) in the event that the President determines 
     that the unilateral economic sanction is related to actual or 
     imminent armed conflict involving the United States.
       (i) Sanctions Review Committee.--The President shall 
     establish a Sanctions Review Committee to coordinate United 
     States policy regarding unilateral economic sanctions and to 
     provide appropriate recommendations to the President prior to 
     decisions regarding such sanctions. The Committee shall be 
     comprised of--
       (1) the Secretary of State;
       (2) the Secretary of the Treasury;
       (3) the Secretary of Defense;
       (4) the Secretary of Agriculture;
       (5) the Secretary of Commerce;
       (6) the Secretary of Energy;
       (7) the United States Trade Representative;
       (8) the Director of the Office of Management and Budget;
       (9) the Chairman of the Council of Economic Advisers;
       (10) the Assistant to the President for National Security 
     Affairs; and
       (11) the Assistant to the President for Economic Policy.
       (j) Inapplicability of Other Provisions.--This section 
     applies notwithstanding any other provision of law.

     SEC. 8. ANNUAL REPORTS.

       (a) Annual Report.--Not later than 6 months after the date 
     of enactment of this Act, and annually thereafter, the 
     President shall submit to the appropriate committees a report 
     detailing with respect to each country or entity against 
     which a unilateral economic sanction has been imposed--
       (1) the extent to which the sanction has achieved foreign 
     policy or national security objectives of the United States 
     with respect to that country or entity;
       (2) the extent to which the sanction has harmed 
     humanitarian interests in that country, the country in which 
     that entity is located, or in other countries; and
       (3) the impact of the sanction on other national security 
     and foreign policy interests of the United States, including 
     relations with countries friendly to the United States, and 
     on the United States economy.
       (b) Report by the United States International Trade 
     Commission.--Not later than 6 months after the date of 
     enactment of this Act, and annually thereafter, the United 
     States International Trade Commission shall report to the 
     appropriate committees on the costs, individually and in the 
     aggregate, of all unilateral economic sanctions in effect 
     under United States law, regulation, or Executive order. The 
     calculation of such costs shall include an assessment of the 
     impact of such measures on the international reputation of 
     the United States as a reliable supplier of products, 
     agricultural commodities, technology, and services.
                                  ____


   Enhancement of Trade, Security and Human Rights Through Sanctions 
                Reform Act--Section-by-Section Analysis

       Section 1: Short Title. The act may be cited as the 
     ``Enhancement of Trade, Security and Human Rights through 
     Sanctions Reform Act.''
       Section 2: Purpose. The purpose of the Act is to establish 
     an effective framework for consideration of unilateral 
     economic sanctions.
       Section 3: Statement of Policy. This section sets forth 
     U.S. policy to pursue American security, trade, and 
     humanitarian interests through broad-ranging engagement with 
     other countries, while recognizing the need at times to 
     impose sanctions as a last resort. It supports multilateral 
     cooperation as an alternative to unilateral U.S. sanctions. 
     It seeks to promote U.S. economic growth through trade and to 
     maintain America's reputation as a reliable supplier. It 
     opposes boycotts and use of agricultural embargoes as a 
     foreign policy weapon. It urges that economic sanctions be 
     targeted as narrowly as possible, to minimize harm to 
     innocent people or to humanitarian activities.
       Section 4: Definitions. This section defines ``unilateral 
     economic sanction'' as any restriction or condition on 
     economic activity with respect to a foreign country or entity 
     imposed for reasons of foreign policy or national security. 
     This definition excludes multilateral sanctions, where other 
     countries have agreed to adopt ``substantially equivalent'' 
     measures. The definition also excludes U.S. trade laws, 
     Jackson-Vanik, and munitions list controls. This section also 
     defines the terms ``national emergency,'' ``agricultural 
     commodity,'' ``appropriate committees,'' and ``contract 
     sanctity.''
       Section 5: Guidelines for Unilateral Economic Sanctions 
     Legislation. This section provides that any bill or joint 
     resolution imposing or authorizing a unilateral economic 
     sanction should state the U.S. foreign policy or national 
     security objective, sunset after two years unless 
     specifically reauthorized, protect contract sanctity, provide 
     Presidential authority to adjust or waive the sanction in the 
     national interest, target the sanction as narrowly as 
     possible against the parties responsible for the offending 
     conduct, and provide for expanded export promotion if 
     sanctions target a major export market for American farmers.
       Section 6: Requirements for Report Accompanying the Bill. 
     The committee reporting sanctions legislation shall request 
     reports from the President and Secretary of Agriculture. 
     These reports shall be included in the committee report. If 
     the legislation does not meet any Section 5 guideline, the 
     committee report shall explain why not.
       The President's report shall contain an assessment of the 
     likelihood that the proposed sanction will achieve its stated 
     objective within a reasonable time. It must weigh the likely 
     foreign policy, national security, economic, and humanitarian 
     benefits against the costs of acting unilaterally. The report 
     will also assess alternatives, such as prior diplomatic and 
     other U.S. steps and comparable multilateral measures.
       The Secretary of Agriculture's report shall assess the 
     likely extent of the proposed legislation in terms of market 
     share in affected countries, the likelihood that U.S. 
     agricultural exports will be affected on the reputation of 
     U.S. farmers as reliable suppliers.
       Section 6 also considers unilateral sanctions as unfunded 
     federal mandates for purposes of the Unfunded Mandates Act. 
     The Congressional Budget Office shall assess the likely 
     short- and long-term cost of the proposed sanctions to the 
     U.S. economy.
       Section 7: Requirements for Executive Action. The President 
     may impose a unilateral sanction no less than 60 days after 
     announcing his intention to do so, during which time he shall 
     consult with Congressional committees and publish a notice in 
     the Federal Register seeking public comment. Any Executive 
     sanction must meet the same guidelines that Section 5 applies 
     to the Congress and must, in addition, include a clear 
     finding that the sanction is likely to achieve a specific 
     U.S. foreign policy or national security objective within a 
     reasonable--and specified--period of time.
       Section 7 also requires--prior to the imposition of a 
     unilateral sanction--the President and the Secretary of 
     Agriculture to provide to the appropriate Congressional 
     committees reports that contain the same assessment as 
     required in the reports described in Section 6. The President 
     shall also request a report by the U.S. International Trade 
     Commission on the likely short- and long-term costs of the 
     proposed sanctions to the U.S. economy, including the 
     potential impact on U.S. competitiveness.
       In case of national emergency, the bill allows the 
     President temporarily to waive most Section 7 requirements in 
     order to act immediately. If the President acts on an 
     emergency basis, the waived requirements must be met within 
     sixty days. Finally, the President shall establish an 
     interagency Sanctions Review Committee to improve 
     coordination of U.S. policy regarding unilateral sanctions.
       Section 8: Annual Report. The President must submit to the 
     appropriate committees a report each year detailing the 
     extent to which sanctions have achieved U.S. objectives, as 
     well as their impact on humanitarian and other U.S. 
     interests, including relations with friendly countries. The 
     U.S. International Trade Commission shall report to the 
     Congress on the costs, individually and in the aggregate, of 
     all unilateral economic sanctions in effect under U.S. law, 
     regulation, or Executive order, including the impact on U.S. 
     competitiveness.

[[Page S12003]]

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