[Congressional Record Volume 145, Number 36 (Monday, March 8, 1999)]
[Senate]
[Pages S2417-S2418]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. LUGAR:
  S. 566. A bill to amend the Agricultural Trade Act of 1978 to exempt 
agricultural commodities, livestock, and value-added products from 
unilateral economic sanctions, to prepare for future bilateral and 
multilateral trade negotiations affecting United States agriculture, 
and for other purposes; to the Committee on Agriculture, Nutrition, and 
Forestry.


                   the agricultural trade freedom act

  Mr. LUGAR. Mr. President, today I rise to introduce legislation to 
open foreign markets, eliminate unfair trade barriers and secure for 
farmers the ability to export their products abroad. By enacting the 
1996 FAIR Act, commonly known as Freedom to Farm, we gave farmers to 
freedom to make planting decisions for themselves, free from government 
controls. However, Freedom to Farm is a compact. Freedom to Farm means 
freedom to export, and in exchange for phasing out subsidies, Congress 
committed to secure free, fair and open markets for our farmer's 
exports. This legislation will improve opportunities to export at a 
time when such opportunities are more important than ever for U.S. 
agriculture.
  No sector of the economy is more reliant on international trade than 
agriculture. Approximately three out of ten acres of domestic 
agriculture production are sold in markets outside of the U.S. and 
agricultural exports make a positive impact on our international 
balance of payments. Despite this success, a great deal of untapped 
export potential still exists. Farmers are reliant on the ability to 
export and this legislation will enhance that ability. Barriers need to 
be removed--barriers we impose on ourselves and barriers imposed by 
others.
  This legislation addresses several items but none is more important 
than sanctions. This legislation exempts commercial agricultural 
exports from unilateral economic sanctions. We impose export barriers 
on ourselves when we unilaterally sanction foreign countries. Such 
sanctions do not preclude the targeted country from looking elsewhere 
for agricultural commodities. U.S. competitors quickly fill the void 
left when the U.S. denies itself market access. Sales are lost and our 
status as a reliable business partner suffers. We often do more harm to 
ourselves than we do to the target country. Unilateral sanctions have 
cost billions of dollars in U.S. income and have cost thousands of U.S. 
jobs. We must end the practice of closing foreign markets for our own 
exports at a time when such exports are more vital than ever for 
agriculture in this country.
  Apart from sanctions, a number of barriers are imposed on U.S. farm 
exports by other countries. The World Trade Organization will hold an 
important round of agricultural negotiations later this year in 
Seattle. These negotiations offer an important opportunity to address 
tariff and non-tariff barriers to U.S. agricultural exports. We must 
take advantage of this opportunity to open foreign markets and 
eliminate unfair export barriers. This legislation provides important 
guidelines for these and other negotiations.
  Mr. President, U.S. agriculture is the best in the world. This 
legislation will allow our farmers to take better advantage of their 
position by opening up foreign markets and eliminating barriers to 
agricultural exports. This is the most important thing we as Congress 
can do for our farmers. I ask unanimous consent that the legislation be 
printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                 S. 566

       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 ``Agricultural Trade Freedom 
     Act''.

     SEC. 2. DEFINITIONS.

       In this Act, the terms ``agricultural commodity'' and 
     ``United States agricultural commodity'' have the meanings 
     given the terms in section 102 of the Agricultural Trade Act 
     of 1978 (7 U.S.C. 5602).

     SEC. 3. AGRICULTURAL COMMODITIES, LIVESTOCK, AND PRODUCTS 
                   EXEMPT FROM SANCTIONS.

       Title IV of the Agricultural Trade Act of 1978 (7 U.S.C. 
     5661 et seq.) is amended by adding at the end the following:

     ``SEC. 418. AGRICULTURAL COMMODITIES, LIVESTOCK, AND PRODUCTS 
                   EXEMPT FROM SANCTIONS.

       ``(a) Definitions.--In this section:
       ``(1) Current sanction.--The term `current sanction' means 
     a unilateral economic sanction that is in effect on the date 
     of enactment of the Agricultural Trade Freedom Act.
       ``(2) New sanction.--The term `new sanction' means a 
     unilateral economic sanction that becomes effective after the 
     date of enactment of that Act.
       ``(3) Unilateral economic sanction.--The term `unilateral 
     economic sanction' means any prohibition, restriction, or 
     condition on economic activity, including economic 
     assistance, with respect to a foreign country or foreign 
     entity that is imposed by the United States for reasons of 
     foreign policy or national security, 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) Exemption.--
       ``(1) In general.--Subject to paragraphs (2) and (3) and 
     notwithstanding any other provision of law, agricultural 
     commodities made available as a result of commercial sales 
     shall be exempt from a unilateral economic sanction imposed 
     by the United States on another country.
       ``(2) Exclusions.--Paragraph (1) shall not apply to 
     agricultural commodities made available as a result of 
     programs carried out under--
       ``(A) the Agricultural Trade Development and Assistance Act 
     of 1954 (7 U.S.C. 1691 et seq.);
       ``(B) section 416 of the Agricultural Act of 1949 (7 U.S.C. 
     1431);
       ``(C) the Food for Progress Act of 1985 (7 U.S.C. 1736o); 
     or
       ``(D) the Agricultural Trade Act of 1978 (7 U.S.C. 5601 et 
     seq.).
       ``(3) Determination by president.--If the President 
     determines that the exemption provided under paragraph (1) 
     should not apply to a unilateral economic sanction for 
     reasons of foreign policy or national security, the President 
     may include the agricultural commodities made available as a 
     result of the activities described in paragraph (1) in the 
     unilateral economic sanction.
       ``(c) Current Sanctions.--
       ``(1) In general.--Subject to paragraph (2), the exemption 
     under subsection (b)(1) shall apply to a current sanction.
       ``(2) Presidential review.--Not later than 90 days after 
     the date of enactment of the Agricultural Trade Freedom Act, 
     the President shall review each current sanction to determine 
     whether the exemption under subsection (b)(1) should apply to 
     the current sanction.
       ``(3) Application.--The exemption under subsection (b)(1) 
     shall apply to a current sanction beginning on the date that 
     is 180 days after the date of enactment of the Agricultural 
     Trade Freedom Act unless the President determines that the 
     exemption should not apply to the current sanction for 
     reasons of foreign policy or national security.
       ``(d) Report.--
       ``(1) In general.--If the President determines that the 
     exemption under subsection (b)(2) or (c)(2) should not apply 
     to a unilateral economic sanction, the President shall submit 
     a report to the Committee on Agriculture of the House of 
     Representatives and the Committee on Agriculture, Nutrition, 
     and Forestry of the Senate--
       ``(A) in the case of a current sanction, not later than 15 
     days after the date of the determination under subsection 
     (c)(2); and
       ``(B) in the case of a new sanction, on the date of the 
     imposition of the new sanction.
       ``(2) Contents of report.--The report shall contain--
       ``(A) an explanation of the foreign policy or national 
     security reasons for which the exemption should not apply to 
     the unilateral economic sanction; and
       ``(B) an assessment by the Secretary--
       ``(i) regarding export sales--

       ``(I) in the case of a current sanction, whether markets in 
     the sanctioned country or countries present a substantial 
     trade opportunity for export sales of a United States 
     agricultural commodity; or

[[Page S2418]]

       ``(II) in the case of a new sanction, the extent to which 
     any country or countries to be sanctioned or likely to be 
     sanctioned are markets that accounted for, during the 
     preceding calendar year, more than 3 percent of export sales 
     of a United States agricultural commodity;

       ``(ii) regarding the effect on United States agricultural 
     commodities--

       ``(I) in the case of a current sanction, the potential for 
     export sales of United States agricultural commodities in the 
     sanctioned country or countries; and
       ``(II) in the case of a new sanction, the likelihood that 
     exports of United States agricultural commodities will be 
     affected by the new sanction or by retaliation by any country 
     to be sanctioned or likely to be sanctioned, including a 
     description of specific United States agricultural 
     commodities that are most likely to be affected;

       ``(iii) regarding the income of agricultural producers--

       ``(I) in the case of a current sanction, the potential for 
     increasing the income of producers of the United States 
     agricultural commodities involved; and
       ``(II) in the case of a new sanction, the likely effect on 
     incomes of producers of the agricultural commodities 
     involved;

       ``(iv) regarding displacement of United States suppliers--

       ``(I) in the case of a current sanction, the potential for 
     increased competition for United States suppliers of the 
     agricultural commodity in countries that are not subject to 
     the current sanction; and
       ``(II) in the case of a new sanction, the extent to which 
     the new sanction would permit foreign suppliers to replace 
     United States suppliers; and

       ``(v) regarding the reputation of United States 
     agricultural producers as reliable suppliers--

       ``(I) in the case of a current sanction, whether removing 
     the sanction would increase the reputation of United States 
     producers as reliable suppliers of agricultural commodities 
     in general, and of specific agricultural commodities 
     identified by the Secretary; and
       ``(II) in the case of a new sanction, the likely effect of 
     the proposed sanction on the reputation of United States 
     producers as reliable suppliers of agricultural commodities 
     in general, and of specific agricultural commodities 
     identified by the Secretary.''.

     SEC. 4. OBJECTIVES FOR AGRICULTURAL NEGOTIATIONS.

       It is the sense of Congress that the principal agricultural 
     trade negotiating objectives of the United States for future 
     multilateral and bilateral trade negotiations (including 
     negotiations involving the World Trade Organization) should 
     be to achieve, on an expedited basis and to the maximum 
     extent practicable, more open and fair conditions for trade 
     in agricultural commodities by--
       (1) developing, strengthening, and clarifying rules for 
     trade in agricultural commodities, including eliminating or 
     reducing restrictive or trade-distorting import and export 
     practices, including--
       (A) enhancing the operation and effectiveness of the 
     relevant provisions of the Uruguay Round Agreements designed 
     to define, deter, and discourage the persistent use of unfair 
     trade practices; and
       (B) enforcing and strengthening rules of the World Trade 
     Organization regarding--
       (i) trade-distorting practices of state trading enterprises 
     and similar public and private trading enterprises; and
       (ii) the acts, practices, or policies of a foreign 
     government that unreasonably--

       (I) require that substantial direct investment in the 
     foreign country be made as a condition for carrying on 
     business in the foreign country;
       (II) require that intellectual property be licensed to the 
     foreign country or to any firm of the foreign country; or
       (III) delay or preclude implementation of a report of a 
     dispute panel of the World Trade Organization;

       (2) increasing the export of United States agricultural 
     commodities by eliminating barriers to trade (including 
     transparent and nontransparent barriers);
       (3) eliminating other specific constraints to fair trade 
     (such as export subsidies, quotas, and other nontariff import 
     barriers and more open market access) in foreign markets for 
     United States agricultural commodities;
       (4) developing, strengthening, and clarifying rules that 
     address practices that unfairly limit United States market 
     access opportunities or distort markets for United States 
     agricultural commodities to the detriment of the United 
     States, including--
       (A) unfair or trade-distorting activities of state trading 
     enterprises, and similar public and private trading 
     enterprises, that result in inadequate price transparency;
       (B) unjustified restrictions or commercial requirements 
     affecting new technologies, including biotechnology;
       (C) unjustified sanitary or phytosanitary restrictions; and
       (D) restrictive rules in the establishment and 
     administration of tariff-rate quotas;
       (5) ensuring that there are reliable suppliers of 
     agricultural commodities in international commerce by 
     encouraging countries to treat foreign buyers no less 
     favorably than domestic buyers of the commodity or product 
     involved; and
       (6) eliminating nontariff trade barriers for meeting the 
     food needs of an increasing world population through the use 
     of biotechnology by--
       (A) ensuring market access to United States agricultural 
     commodities derived from biotechnology that is scientifically 
     defensible;
       (B) opposing the establishment of protectionist trade 
     measures disguised as health standards; and
       (C) protesting continual delays by other countries in their 
     approval processes.

     SEC. 5. SALE OR BARTER OF FOOD ASSISTANCE.

       It is the sense of Congress that the amendments to section 
     203 of the Agricultural Trade Development and Assistance Act 
     of 1954 (7 U.S.C. 1723) made by section 208 of the Federal 
     Agriculture Improvement and Reform Act of 1996 (Public Law 
     104-127; 110 Stat. 954) were intended to allow the sale or 
     barter of United States agricultural commodities in 
     connection with United States food assistance only within the 
     recipient country or countries adjacent to the recipient 
     country, unless--
       (1) the sale or barter within the recipient country or 
     adjacent countries is not practicable; and
       (2) the sale or barter within countries other than the 
     recipient country or adjacent countries will not disrupt 
     commercial markets for the agricultural commodity involved.

     SEC. 6. SENSE OF CONGRESS REGARDING RELIEF FROM UNFAIR TRADE 
                   PRACTICES AFFECTING UNITED STATES AGRICULTURAL 
                   COMMODITIES.

       (a) Findings.--Congress finds that--
       (1) often dispute settlement proceedings to resolve unfair 
     trade practices of foreign countries that restrict market 
     access of United States agricultural commodities are 
     inadequate, time consuming, and cumbersome; and
       (2) practices that unfairly limit market access 
     opportunities for United States agricultural commodities 
     through export subsidies and import barriers include--
       (A) unfair or trade-distorting activities of state trading 
     enterprises, and similar public and private trading 
     enterprises, that result in inadequate price transparency;
       (B) unjustified restrictions or commercial requirements 
     affecting new technologies, including biotechnology, that are 
     not scientifically defensible;
       (C) unjustified sanitary or phytosanitary restrictions;
       (D) restrictive rules for the establishment and 
     administration of tariff-rate quotas;
       (E) requirements that substantial direct investment in the 
     foreign country be made as a condition for carrying on 
     business in the foreign country; and
       (F) requirements that intellectual property be licensed to 
     the foreign country or to any firm of the foreign country.
       (b) Sense of Congress.--It is the sense of Congress that 
     the Secretary of Agriculture should aggressively use the 
     authorities granted to the Secretary under section 302 of the 
     Agricultural Trade Act of 1978 (7 U.S.C. 5652), which 
     provides the Secretary with the authority to use programs of 
     the Department of Agriculture for the agricultural commodity 
     involved when there is undue delay in a dispute resolution 
     proceeding of an international trade agreement (such as an 
     agreement administered by the World Trade Organization).

     SEC. 7. MICRONUTRIENT FORTIFICATION PILOT PROGRAM.

       Section 415 of the Agricultural Trade Development and 
     Assistance Act of 1954 (7 U.S.C. 1736g-2) is repealed.

     SEC. 8. TECHNICAL CORRECTIONS.

       (a) Administrative Provisions.--Section 216 of the Federal 
     Agriculture Improvement and Reform Act of 1996 (Public Law 
     104-127; 110 Stat. 957) is amended--
       (1) in paragraph (2), by striking ``subsection (c)'' and 
     inserting ``subsection (b)'';
       (2) in paragraph (3), by striking ``subsection (d)'' and 
     inserting ``subsection (c)'';
       (3) in paragraph (4), by striking ``subsection (g)(2)'' and 
     inserting ``subsection (f)(2)''; and
       (4) in paragraph (5), by striking ``subsection (h)'' and 
     inserting ``subsection (g)''.
       (b) Emerging Markets.--Section 1542(d)(1)(A)(i) of the 
     Food, Agriculture, Conservation, and Trade Act of 1990 
     (Public Law 101-624; 7 U.S.C. 5622 note) is amended by 
     striking ``such democracies'' and inserting ``the markets''.
       (c) Trade Compensation and Assistance Programs.--Section 
     417(a) of the Agricultural Trade Act of 1978 (7 U.S.C. 
     5677(a)) is amended by inserting ``of an agricultural 
     commodity'' after ``causes exports''.
       (d) Effective Date.--The amendments made by this section 
     take effect on April 4, 1996.

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