[Congressional Record Volume 148, Number 58 (Thursday, May 9, 2002)]
[Senate]
[Pages S4166-S4180]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                           TEXT OF AMENDMENTS

  SA 3398. Mr. BAUCUS (for himself and Mr. Grassley) submitted an 
amendment intended to be proposed to amendment SA 3386 proposed by Mr. 
Daschle to the bill (H.R. 3009) to extend the Andean Trade Preference 
Act, to grant additional trade benefits under that Act, and for other 
purposes; which was ordered to lie on the table; as follows:

       On page 244, line 23, strike all through ``United States,'' 
     on line 25, and insert the following: ``foreign investors in 
     the United States are not accorded greater rights than United 
     States investors in the United States,''.
                                  ____

  SA 3399. Mr. LOTT proposed an amendment to the bill H.R. 3009, to 
extend the Andean Trade Preference Act, to grant additional trade 
benefits under that Act, and for other purposes; as follows:

       Strike all after the first word in the bill and add the 
     following:

            DIVISION A--BIPARTISAN TRADE PROMOTION AUTHORITY

                   TITLE I--TRADE PROMOTION AUTHORITY

     SEC. 1101. SHORT TITLE; FINDINGS.

       (a) Short Title.--This division may be cited as the 
     ``Bipartisan Trade Promotion Authority Act of 2002''.
       (b) Findings.--The Congress makes the following findings:
       (1) The expansion of international trade is vital to the 
     national security of the United States. Trade is critical to 
     the economic growth and strength of the United States and to 
     its leadership in the world. Stable trading relationships 
     promote security and prosperity. Trade agreements today serve 
     the same purposes that security pacts played during the Cold 
     War, binding nations together through a series of mutual 
     rights and obligations. Leadership by the United States in 
     international trade fosters open markets, democracy, and 
     peace throughout the world.
       (2) The national security of the United States depends on 
     its economic security, which in turn is founded upon a 
     vibrant and growing industrial base. Trade expansion has been 
     the engine of economic growth. Trade agreements maximize 
     opportunities for the critical sectors and building blocks of 
     the economy of the United States, such as information 
     technology, telecommunications and other leading 
     technologies, basic industries, capital equipment, medical 
     equipment, services, agriculture, environmental technology, 
     and intellectual property. Trade will create new 
     opportunities for the United States and preserve the 
     unparalleled strength of the United States in economic, 
     political, and military affairs. The United States, secured 
     by expanding trade and economic opportunities, will meet the 
     challenges of the twenty-first century.
       (3) Support for continued trade expansion requires that 
     dispute settlement procedures under international trade 
     agreements not add to or diminish the rights and obligations 
     provided in such agreements. Nevertheless, in several cases, 
     dispute settlement panels and the WTO Appellate Body have 
     added to obligations and diminished rights of the United 
     States under WTO Agreements. In particular, dispute 
     settlement panels and the Appellate Body have--
       (A) given insufficient deference to the expertise and fact-
     finding of the Department of Commerce and the United States 
     International Trade Commission;
       (B) imposed an obligation concerning the causal 
     relationship between increased imports into the United States 
     and serious injury to domestic industry necessary to support 
     a safeguard measure that is different from the obligation set 
     forth in the applicable WTO Agreements;
       (C) imposed an obligation concerning the exclusion from 
     safeguards measures of products imported from countries party 
     to a free trade agreement that is different from the 
     obligation set forth in the applicable WTO Agreements;
       (D) imposed obligations on the Department of Commerce with 
     respect to the use of facts

[[Page S4167]]

     available in antidumping investigations that are different 
     from the obligations set forth in the applicable WTO 
     Agreements; and
       (E) accorded insufficient deference to the Department of 
     Commerce's methodology for adjusting countervailing duties 
     following the privatization of a subsidized foreign producer.

     SEC. 1102. TRADE NEGOTIATING OBJECTIVES.

       (a) Overall Trade Negotiating Objectives.--The overall 
     trade negotiating objectives of the United States for 
     agreements subject to the provisions of section 1103 are--
       (1) to obtain more open, equitable, and reciprocal market 
     access;
       (2) to obtain the reduction or elimination of barriers and 
     distortions that are directly related to trade and that 
     decrease market opportunities for United States exports or 
     otherwise distort United States trade;
       (3) to further strengthen the system of international 
     trading disciplines and procedures, including dispute 
     settlement;
       (4) to foster economic growth, raise living standards, and 
     promote full employment in the United States and to enhance 
     the global economy;
       (5) to ensure that trade and environmental policies are 
     mutually supportive and to seek to protect and preserve the 
     environment and enhance the international means of doing so, 
     while optimizing the use of the world's resources;
       (6) to promote respect for worker rights and the rights of 
     children consistent with core labor standards of the 
     International Labor Organization (as defined in section 
     1113(2)) and an understanding of the relationship between 
     trade and worker rights;
       (7) to seek provisions in trade agreements under which 
     parties to those agreements strive to ensure that they do not 
     weaken or reduce the protections afforded in domestic 
     environmental and labor laws as an encouragement for trade; 
     and
       (8) to ensure that trade agreements afford small businesses 
     equal access to international markets, equitable trade 
     benefits, expanded export market opportunities, and provide 
     for the reduction or elimination of trade barriers that 
     disproportionately impact small business.
       (b) Principal Trade Negotiating Objectives.--
       (1) Trade barriers and distortions.--The principal 
     negotiating objectives of the United States regarding trade 
     barriers and other trade distortions are--
       (A) to expand competitive market opportunities for United 
     States exports and to obtain fairer and more open conditions 
     of trade by reducing or eliminating tariff and nontariff 
     barriers and policies and practices of foreign governments 
     directly related to trade that decrease market opportunities 
     for United States exports or otherwise distort United States 
     trade; and
       (B) to obtain reciprocal tariff and nontariff barrier 
     elimination agreements, with particular attention to those 
     tariff categories covered in section 111(b) of the Uruguay 
     Round Agreements Act (19 U.S.C. 3521(b)).
       (2) Trade in services.--The principal negotiating objective 
     of the United States regarding trade in services is to reduce 
     or eliminate barriers to international trade in services, 
     including regulatory and other barriers that deny national 
     treatment and market access or unreasonably restrict the 
     establishment or operations of service suppliers.
       (3) Foreign investment.--Recognizing that United States law 
     on the whole provides a high level of protection for 
     investment, consistent with or greater than the level 
     required by international law, the principal negotiating 
     objectives of the United States regarding foreign investment 
     are to reduce or eliminate artificial or trade-distorting 
     barriers to trade-related foreign investment, while ensuring 
     that United States investors in the United States are not 
     accorded lesser rights than foreign investors in the United 
     States, and to secure for investors important rights 
     comparable to those that would be available under United 
     States legal principles and practice, by--
       (A) reducing or eliminating exceptions to the principle of 
     national treatment;
       (B) freeing the transfer of funds relating to investments;
       (C) reducing or eliminating performance requirements, 
     forced technology transfers, and other unreasonable barriers 
     to the establishment and operation of investments;
       (D) seeking to establish standards for expropriation and 
     compensation for expropriation, consistent with United States 
     legal principles and practice;
       (E) seeking to establish standards for fair and equitable 
     treatment consistent with United States legal principles and 
     practice, including the principle of due process;
       (F) providing meaningful procedures for resolving 
     investment disputes;
       (G) seeking to improve mechanisms used to resolve disputes 
     between an investor and a government through--
       (i) mechanisms to eliminate frivolous claims and to deter 
     the filing of frivolous claims;
       (ii) procedures to ensure the efficient selection of 
     arbitrators and the expeditious disposition of claims;
       (iii) procedures to enhance opportunities for public input 
     into the formulation of government positions; and
       (iv) establishment of a single appellate body to review 
     decisions in investor-to-government disputes and thereby 
     provide coherence to the interpretations of investment 
     provisions in trade agreements; and
       (H) ensuring the fullest measure of transparency in the 
     dispute settlement mechanism, to the extent consistent with 
     the need to protect information that is classified or 
     business confidential, by--
       (i) ensuring that all requests for dispute settlement are 
     promptly made public;
       (ii) ensuring that--

       (I) all proceedings, submissions, findings, and decisions 
     are promptly made public;
       (II) all hearings are open to the public; and

       (iii) establishing a mechanism for acceptance of amicus 
     curiae submissions from businesses, unions, and 
     nongovernmental organizations.
       (4) Intellectual property.--The principal negotiating 
     objectives of the United States regarding trade-related 
     intellectual property are--
       (A) to further promote adequate and effective protection of 
     intellectual property rights, including through--
       (i)(I) ensuring accelerated and full implementation of the 
     Agreement on Trade-Related Aspects of Intellectual Property 
     Rights referred to in section 101(d)(1 5) of the Uruguay 
     Round Agreements Act (19 U.S.C. 3511(d)(15)), particularly 
     with respect to meeting enforcement obligations under that 
     agreement; and
       (II) ensuring that the provisions of any multilateral or 
     bilateral trade agreement governing intellectual property 
     rights that is entered into by the United States reflect a 
     standard of protection similar to that found in United States 
     law;
       (ii) providing strong protection for new and emerging 
     technologies and new methods of transmitting and distributing 
     products embodying intellectual property;
       (iii) preventing or eliminating discrimination with respect 
     to matters affecting the availability, acquisition, scope, 
     maintenance, use, and enforcement of intellectual property 
     rights;
       (iv) ensuring that standards of protection and enforcement 
     keep pace with technological developments, and in particular 
     ensuring that rightholders have the legal and technological 
     means to control the use of their works through the Internet 
     and other global communication media, and to prevent the 
     unauthorized use of their works; and
       (v) providing strong enforcement of intellectual property 
     rights, including through accessible, expeditious, and 
     effective civil, administrative, and criminal enforcement 
     mechanisms; and
       (B) to secure fair, equitable, and nondiscriminatory market 
     access opportunities for United States persons that rely upon 
     intellectual property protection.
       (5) Transparency.--The principal negotiating objective of 
     the United States with respect to transparency is to obtain 
     wider and broader application of the principle of 
     transparency through--
       (A) increased and more timely public access to information 
     regarding trade issues and the activities of international 
     trade institutions;
       (B) increased openness at the WTO and other international 
     trade fora by increasing public access to appropriate 
     meetings, proceedings, and submissions, including with regard 
     to dispute settlement and investment; and
       (C) increased and more timely public access to all 
     notifications and supporting documentation submitted by 
     parties to the WTO.
       (6) Anti-corruption.--The principal negotiating objectives 
     of the United States with respect to the use of money or 
     other things of value to influence acts, decisions, or 
     omissions of foreign governments or officials or to secure 
     any improper advantage in a manner affecting trade are--
       (A) to obtain high standards and appropriate domestic 
     enforcement mechanisms applicable to persons from all 
     countries participating in the applicable trade agreement 
     that prohibit such attempts to influence acts, decisions, or 
     omissions of foreign governments; and
       (B) to ensure that such standards do not place United 
     States persons at a competitive disadvantage in international 
     trade.
       (7) Improvement of the wto and multilateral trade 
     agreements.--The principal negotiating objectives of the 
     United States regarding the improvement of the World Trade 
     Organization, the Uruguay Round Agreements, and other 
     multilateral and bilateral trade agreements are--
       (A) to achieve full implementation and extend the coverage 
     of the World Trade Organization and such agreements to 
     products, sectors, and conditions of trade not adequately 
     covered; and
       (B) to expand country participation in and enhancement of 
     the Information Technology Agreement and other trade 
     agreements.
       (8) Regulatory practices.--The principal negotiating 
     objectives of the United States regarding the use of 
     government regulation or other practices by foreign 
     governments to provide a competitive advantage to their 
     domestic producers, service providers, or investors and 
     thereby reduce market access for United States goods, 
     services, and investments are--
       (A) to achieve increased transparency and opportunity for 
     the participation of affected parties in the development of 
     regulations;
       (B) to require that proposed regulations be based on sound 
     science, cost-benefit analysis, risk assessment, or other 
     objective evidence;
       (C) to establish consultative mechanisms among parties to 
     trade agreements to promote increased transparency in 
     developing guidelines, rules, regulations, and laws for

[[Page S4168]]

     government procurement and other regulatory regimes; and
       (D) to achieve the elimination of government measures such 
     as price controls and reference pricing which deny full 
     market access for United States products.
       (9) Electronic commerce.--The principal negotiating 
     objectives of the United States with respect to electronic 
     commerce are--
       (A) to ensure that current obligations, rules, disciplines, 
     and commitments under the World Trade Organization apply to 
     electronic commerce;
       (B) to ensure that--
       (i) electronically delivered goods and services receive no 
     less favorable treatment under trade rules and commitments 
     than like products delivered in physical form; and
       (ii) the classification of such goods and services ensures 
     the most liberal trade treatment possible;
       (C) to ensure that governments refrain from implementing 
     trade-related measures that impede electronic commerce;
       (D) where legitimate policy objectives require domestic 
     regulations that affect electronic commerce, to obtain 
     commitments that any such regulations are the least 
     restrictive on trade, nondiscriminatory, and transparent, and 
     promote an open market environment; and
       (E) to extend the moratorium of the World Trade 
     Organization on duties on electronic transmissions.
       (10) Reciprocal trade in agriculture.--
       (A) In general.--The principal negotiating objective of the 
     United States with respect to agriculture is to obtain 
     competitive opportunities for United States exports of 
     agricultural commodities in foreign markets substantially 
     equivalent to the competitive opportunities afforded foreign 
     exports in United States markets and to achieve fairer and 
     more open conditions of trade in bulk, specialty crop, and 
     value-added commodities by--
       (i) reducing or eliminating, by a date certain, tariffs or 
     other charges that decrease market opportunities for United 
     States exports--

       (I) giving priority to those products that are subject to 
     significantly higher tariffs or subsidy regimes of major 
     producing countries; and
       (II) providing reasonable adjustment periods for United 
     States import-sensitive products, in close consultation with 
     the Congress on such products before initiating tariff 
     reduction negotiations;

       (ii) reducing tariffs to levels that are the same as or 
     lower than those in the United States;
       (iii) seeking to eliminate all export subsidies on 
     agricultural commodities while maintaining bona fide food aid 
     and preserving United States agricultural market development 
     and export credit programs that allow the United States to 
     compete with other foreign export promotion efforts;
       (iv) allowing the preservation of programs that support 
     family farms and rural communities but do not distort trade;
       (v) developing disciplines for domestic support programs, 
     so that production that is in excess of domestic food 
     security needs is sold at world prices;
       (vi) eliminating Government policies that create price-
     depressing surpluses;
       (vii) eliminating state trading enterprises whenever 
     possible;
       (viii) developing, strengthening, and clarifying rules and 
     effective dispute settlement mechanisms to eliminate 
     practices that unfairly decrease United States market access 
     opportunities or distort agricultural markets to the 
     detriment of the United States, particularly with respect to 
     import-sensitive products, including--

       (I) unfair or trade-distorting activities of state trading 
     enterprises and other administrative mechanisms, with 
     emphasis on requiring price transparency in the operation of 
     state trading enterprises and such other mechanisms in order 
     to end cross subsidization, price discrimination, and price 
     undercutting;
       (II) unjustified trade restrictions or commercial 
     requirements, such as labeling, that affect new technologies, 
     including biotechnology;
       (III) unjustified sanitary or phytosanitary restrictions, 
     including those not based on scientific principles in 
     contravention of the Uruguay Round Agreements;
       (IV) other unjustified technical barriers to trade; and
       (V) restrictive rules in the administration of tariff rate 
     quotas;

       (ix) eliminating practices that adversely affect trade in 
     perishable or cyclical products, while improving import 
     relief mechanisms to recognize the unique characteristics of 
     perishable and cyclical agriculture;
       (x) ensuring that the use of import relief mechanisms for 
     perishable and cyclical agriculture are as accessible and 
     timely to growers in the United States as those mechanisms 
     that are used by other countries;
       (xi) taking into account whether a party to the 
     negotiations has failed to adhere to the provisions of 
     already existing trade agreements with the United States or 
     has circumvented obligations under those agreements;
       (xii) taking into account whether a product is subject to 
     market distortions by reason of a failure of a major 
     producing country to adhere to the provisions of already 
     existing trade agreements with the United States or by the 
     circumvention by that country of its obligations under those 
     agreements;
       (xiii) otherwise ensuring that countries that accede to the 
     World Trade Organization have made meaningful market 
     liberalization commitments in agriculture;
       (xiv) taking into account the impact that agreements 
     covering agriculture to which the United States is a party, 
     including the North American Free Trade Agreement, have on 
     the United States agricultural industry;
       (xv) maintaining bona fide food assistance programs and 
     preserving United States market development and export credit 
     programs; and
       (xvi) strive to complete a general multilateral round in 
     the World Trade Organization by January 1, 2005, and seek the 
     broadest market access possible in multilateral, regional, 
     and bilateral negotiations, recognizing the effect that 
     simultaneous sets of negotiations may have on United States 
     import-sensitive commodities (including those subject to 
     tariff-rate quotas).
       (B) Consultation.--
       (i) Before commencing negotiations.--Before commencing 
     negotiations with respect to agriculture, the United States 
     Trade Representative, in consultation with the Congress, 
     shall seek to develop a position on the treatment of seasonal 
     and perishable agricultural products to be employed in the 
     negotiations in order to develop an international consensus 
     on the treatment of seasonal or perishable agricultural 
     products in investigations relating to dumping and safeguards 
     and in any other relevant area.
       (ii) During negotiations.--During any negotiations on 
     agricultural subsidies, the United States Trade 
     Representative shall seek to establish the common base year 
     for calculating the Aggregated Measurement of Support (as 
     defined in the Agreement on Agriculture) as the end of each 
     country's Uruguay Round implementation period, as reported in 
     each country's Uruguay Round market access schedule.
       (iii) Scope of objective.--The negotiating objective 
     provided in subparagraph (A) applies with respect to 
     agricultural matters to be addressed in any trade agreement 
     entered into under section 1103 (a) or (b), including any 
     trade agreement entered into under section 1103 (a) or (b) 
     that provides for accession to a trade agreement to which the 
     United States is already a party, such as the North American 
     Free Trade Agreement and the United States-Canada Free Trade 
     Agreement.
       (11) Labor and the environment.--The principal negotiating 
     objectives of the United States with respect to labor and the 
     environment are--
       (A) to ensure that a party to a trade agreement with the 
     United States does not fail to effectively enforce its 
     environmental or labor laws, through a sustained or recurring 
     course of action or inaction, in a manner affecting trade 
     between the United States and that party after entry into 
     force of a trade agreement between those countries;
       (B) to recognize that parties to a trade agreement retain 
     the right to exercise discretion with respect to 
     investigatory, prosecutorial, regulatory, and compliance 
     matters and to make decisions regarding the allocation of 
     resources to enforcement with respect to other labor or 
     environmental matters determined to have higher priorities, 
     and to recognize that a country is effectively enforcing its 
     laws if a course of action or inaction reflects a reasonable 
     exercise of such discretion, or results from a bona fide 
     decision regarding the allocation of resources and no 
     retaliation may be authorized based on the exercise of these 
     rights or the right to establish domestic labor standards and 
     levels of environmental protection;
       (C) to strengthen the capacity of United States trading 
     partners to promote respect for core labor standards (as 
     defined in section 1113(2));
       (D) to strengthen the capacity of United States trading 
     partners to protect the environment through the promotion of 
     sustainable development;
       (E) to reduce or eliminate government practices or policies 
     that unduly threaten sustainable development;
       (F) to seek market access, through the elimination of 
     tariffs and nontariff barriers, for United States 
     environmental technologies, goods, and services; and
       (G) to ensure that labor, environmental, health, or safety 
     policies and practices of the parties to trade agreements 
     with the United States do not arbitrarily or unjustifiably 
     discriminate against United States exports or serve as 
     disguised barriers to trade.
       (12) Dispute settlement and enforcement.--The principal 
     negotiating objectives of the United States with respect to 
     dispute settlement and enforcement of trade agreements are--
       (A) to seek provisions in trade agreements providing for 
     resolution of disputes between governments under those trade 
     agreements in an effective, timely, transparent, equitable, 
     and reasoned manner, requiring determinations based on facts 
     and the principles of the agreements, with the goal of 
     increasing compliance with the agreements;
       (B) to seek to strengthen the capacity of the Trade Policy 
     Review Mechanism of the World Trade Organization to review 
     compliance with commitments;
       (C) to seek improved adherence by panels convened under the 
     WTO Understanding on Rules and Procedures Governing the 
     Settlement of Disputes and by the WTO Appellate Body to the 
     standard of review applicable under the WTO Agreement 
     involved in the dispute, including greater deference, where 
     appropriate, to the fact finding and technical

[[Page S4169]]

     expertise of national investigating authorities;
       (D) to seek provisions encouraging the early identification 
     and settlement of disputes through consultation;
       (E) to seek provisions to encourage the provision of trade-
     expanding compensation if a party to a dispute under the 
     agreement does not come into compliance with its obligations 
     under the agreement;
       (F) to seek provisions to impose a penalty upon a party to 
     a dispute under the agreement that--
       (i) encourages compliance with the obligations of the 
     agreement;
       (ii) is appropriate to the parties, nature, subject matter, 
     and scope of the violation; and
       (iii) has the aim of not adversely affecting parties or 
     interests not party to the dispute while maintaining the 
     effectiveness of the enforcement mechanism; and
       (G) to seek provisions that treat United States principal 
     negotiating objectives equally with respect to--
       (i) the ability to resort to dispute settlement under the 
     applicable agreement;
       (ii) the availability of equivalent dispute settlement 
     procedures; and
       (iii) the availability of equivalent remedies.
       (13) Border taxes.--The principal negotiating objective of 
     the United States regarding border taxes is to obtain a 
     revision of the WTO rules with respect to the treatment of 
     border adjustments for internal taxes to redress the 
     disadvantage to countries relying primarily on direct taxes 
     for revenue rather than indirect taxes.
       (14) WTO extended negotiations.--The principal negotiating 
     objectives of the United States regarding trade in civil 
     aircraft are those set forth in section 135(c) of the Uruguay 
     Round Agreements Act (19 U.S.C. 3355(c)) and regarding rules 
     of origin are the conclusion of an agreement described in 
     section 132 of that Act (19 U.S.C. 3552).
       (c) Promotion of Certain Priorities.--In order to address 
     and maintain United States competitiveness in the global 
     economy, the President shall--
       (1) seek greater cooperation between the WTO and the ILO;
       (2) seek to establish consultative mechanisms among parties 
     to trade agreements to strengthen the capacity of United 
     States trading partners to promote respect for core labor 
     standards (as defined in section 1113(2)), and report to the 
     Committee on Ways and Means of the House of Representatives 
     and the Committee on Finance of the Senate on the content and 
     operation of such mechanisms;
       (3) seek to establish consultative mechanisms among parties 
     to trade agreements to strengthen the capacity of United 
     States trading partners to develop and implement standards 
     for the protection of the environment and human health based 
     on sound science, and report to the Committee on Ways and 
     Means of the House of Representatives and the Committee on 
     Finance of the Senate on the content and operation of such 
     mechanisms;
       (4) conduct environmental reviews of future trade and 
     investment agreements, consistent with Executive Order 13141 
     of November 16, 1999 and the relevant guidelines, and report 
     to the Committee on Ways and Means of the House of 
     Representatives and the Committee on Finance of the Senate on 
     such reviews;
       (5) review the impact of future trade agreements on United 
     States employment, modeled after Executive Order 13141, and 
     report to the Committee on Ways and Means of the House of 
     Representatives and the Committee on Finance of the Senate on 
     such review;
       (6) take into account other legitimate United States 
     domestic objectives including, but not limited to, the 
     protection of legitimate health or safety, essential 
     security, and consumer interests and the law and regulations 
     related thereto;
       (7) have the Secretary of Labor consult with any country 
     seeking a trade agreement with the United States concerning 
     that country's labor laws and provide technical assistance to 
     that country if needed;
       (8) in connection with any trade negotiations entered into 
     under this division, the President shall submit to the 
     Committee on Ways and Means of the House of Representatives 
     and the Committee on Finance of the Senate a meaningful labor 
     rights report of the country, or countries, with respect to 
     which the President is negotiating, on a time frame 
     determined in accordance with section 1107(b)(2)(E);
       (9)(A) preserve the ability of the United States to enforce 
     rigorously its trade laws, including the antidumping, 
     countervailing duty, and safeguard laws, and avoid agreements 
     that lessen the effectiveness of domestic and international 
     disciplines on unfair trade, especially dumping and 
     subsidies, or that lessen the effectiveness of domestic and 
     international safeguard provisions, in order to ensure that 
     United States workers, agricultural producers, and firms can 
     compete fully on fair terms and enjoy the benefits of 
     reciprocal trade concessions; and
       (B) address and remedy market distortions that lead to 
     dumping and subsidization, including overcapacity, 
     cartelization, and market-access barriers.
       (10) continue to promote consideration of multilateral 
     environmental agreements and consult with parties to such 
     agreements regarding the consistency of any such agreement 
     that includes trade measures with existing environmental 
     exceptions under Article XX of the GATT 1994;
       (11) report to the Committee on Ways and Means of the House 
     of Representatives and the Committee on Finance of the 
     Senate, not later than 12 months after the imposition of a 
     penalty or remedy by the United States permitted by a trade 
     agreement to which this division applies, on the 
     effectiveness of the penalty or remedy applied under United 
     States law in enforcing United States rights under the trade 
     agreement; and
       (12) seek to establish consultative mechanisms among 
     parties to trade agreements to examine the trade consequences 
     of significant and unanticipated currency movements and to 
     scrutinize whether a foreign government engaged in a pattern 
     of manipulating its currency to promote a competitive 
     advantage in international trade.
     The report required under paragraph (11) shall address 
     whether the penalty or remedy was effective in changing the 
     behavior of the targeted party and whether the penalty or 
     remedy had any adverse impact on parties or interests not 
     party to the dispute.
       (d) Consultations.--
       (1) Consultations with congressional advisers.--In the 
     course of negotiations conducted under this division, the 
     United States Trade Representative shall consult closely and 
     on a timely basis with, and keep fully apprised of the 
     negotiations, the Congressional Oversight Group convened 
     under section 1107 and all committees of the House of 
     Representatives and the Senate with jurisdiction over laws 
     that would be affected by a trade agreement resulting from 
     the negotiations.
       (2) Consultation before agreement initialed.--In the course 
     of negotiations conducted under this division, the United 
     States Trade Representative shall--
       (A) consult closely and on a timely basis (including 
     immediately before initialing an agreement) with, and keep 
     fully apprised of the negotiations, the congressional 
     advisers for trade policy and negotiations appointed under 
     section 161 of the Trade Act of 1974 (19 U.S.C. 2211), the 
     Committee on Ways and Means of the House of Representatives, 
     the Committee on Finance of the Senate, and the Congressional 
     Oversight Group convened under section 1107; and
       (B) with regard to any negotiations and agreement relating 
     to agricultural trade, also consult closely and on a timely 
     basis (including immediately before initialing an agreement) 
     with, and keep fully apprised of the negotiations, the 
     Committee on Agriculture of the House of Representatives and 
     the Committee on Agriculture, Nutrition, and Forestry of the 
     Senate.
       (e) Adherence to Obligations Under Uruguay Round 
     Agreements.--In determining whether to enter into 
     negotiations with a particular country, the President shall 
     take into account the extent to which that country has 
     implemented, or has accelerated the implementation of, its 
     obligations under the Uruguay Round Agreements.

     SEC. 1103. TRADE AGREEMENTS AUTHORITY.

       (a) Agreements Regarding Tariff Barriers.--
       (1) In general.--Whenever the President determines that one 
     or more existing duties or other import restrictions of any 
     foreign country or the United States are unduly burdening and 
     restricting the foreign trade of the United States and that 
     the purposes, policies, priorities, and objectives of this 
     division will be promoted thereby, the President--
       (A) may enter into trade agreements with foreign countries 
     before--
       (i) June 1, 2005; or
       (ii) June 1, 2007, if trade authorities procedures are 
     extended under subsection (c); and
       (B) may, subject to paragraphs (2) and (3), proclaim--
       (i) such modification or continuance of any existing duty,
       (ii) such continuance of existing duty-free or excise 
     treatment, or
       (iii) such additional duties,

     as the President determines to be required or appropriate to 
     carry out any such trade agreement.

     The President shall notify the Congress of the President's 
     intention to enter into an agreement under this subsection.
       (2) Limitations.--No proclamation may be made under 
     paragraph (1) that--
       (A) reduces any rate of duty (other than a rate of duty 
     that does not exceed 5 percent ad valorem on the date of the 
     enactment of this Act) to a rate of duty which is less than 
     50 percent of the rate of such duty that applies on such date 
     of enactment;
       (B) reduces the rate of duty below that applicable under 
     the Uruguay Round Agreements, on any agricultural product 
     which was the subject of tariff reductions by the United 
     States as a result of the Uruguay Round Agreements, for which 
     the rate of duty, pursuant to such Agreements, was reduced on 
     January 1, 1995, to a rate which was not less than 97.5 
     percent of the rate of duty that applied to such article on 
     December 31, 1994; or
       (C) increases any rate of duty above the rate that applied 
     on the date of the enactment of this Act.
       (3) Aggregate reduction; exemption from staging.--
       (A) Aggregate reduction.--Except as provided in 
     subparagraph (B), the aggregate reduction in the rate of duty 
     on any article which is in effect on any day pursuant to a

[[Page S4170]]

     trade agreement entered into under paragraph (1) shall not 
     exceed the aggregate reduction which would have been in 
     effect on such day if--
       (i) a reduction of 3 percent ad valorem or a reduction of 
     one-tenth of the total reduction, whichever is greater, had 
     taken effect on the effective date of the first reduction 
     proclaimed under paragraph (1) to carry out such agreement 
     with respect to such article; and
       (ii) a reduction equal to the amount applicable under 
     clause (i) had taken effect at 1-year intervals after the 
     effective date of such first reduction.
       (B) Exemption from staging.--No staging is required under 
     subparagraph (A) with respect to a duty reduction that is 
     proclaimed under paragraph (1) for an article of a kind that 
     is not produced in the United States. The United States 
     International Trade Commission shall advise the President of 
     the identity of articles that may be exempted from staging 
     under this subparagraph.
       (4) Rounding.--If the President determines that such action 
     will simplify the computation of reductions under paragraph 
     (3), the President may round an annual reduction by an amount 
     equal to the lesser of--
       (A) the difference between the reduction without regard to 
     this paragraph and the next lower whole number; or
       (B) one-half of 1 percent ad valorem.
       (5) Other limitations.--A rate of duty reduction that may 
     not be proclaimed by reason of paragraph (2) may take effect 
     only if a provision authorizing such reduction is included 
     within an implementing bill provided for under section 1105 
     and that bill is enacted into law.
       (6) Other tariff modifications.--Notwithstanding paragraphs 
     (1)(B), (2)(A), (2)(C), and (3) through (5), and subject to 
     the consultation and layover requirements of section 115 of 
     the Uruguay Round Agreements Act, the President may proclaim 
     the modification of any duty or staged rate reduction of any 
     duty set forth in Schedule XX, as defined in section 2(5) of 
     that Act, if the United States agrees to such modification or 
     staged rate reduction in a negotiation for the reciprocal 
     elimination or harmonization of duties under the auspices of 
     the World Trade Organization.
       (7) Authority under uruguay round agreements act not 
     affected.--Nothing in this subsection shall limit the 
     authority provided to the President under section 111(b) of 
     the Uruguay Round Agreements Act (19 U.S.C. 3521(b)).
       (b) Agreements Regarding Tariff and Nontariff Barriers.--
       (1) In general.--
       (A) Determination by president.--Whenever the President 
     determines that--
       (i) one or more existing duties or any other import 
     restriction of any foreign country or the United States or 
     any other barrier to, or other distortion of, international 
     trade unduly burdens or restricts the foreign trade of the 
     United States or adversely affects the United States economy; 
     or
       (ii) the imposition of any such barrier or distortion is 
     likely to result in such a burden, restriction, or effect;

     and that the purposes, policies, priorities, and objectives 
     of this division will be promoted thereby, the President may 
     enter into a trade agreement described in subparagraph (B) 
     during the period described in subparagraph (C).
       (B) Agreement to reduce or eliminate certain distortion.--
     The President may enter into a trade agreement under 
     subparagraph (A) with foreign countries providing for--
       (i) the reduction or elimination of a duty, restriction, 
     barrier, or other distortion described in subparagraph (A), 
     or
       (ii) the prohibition of, or limitation on the imposition 
     of, such barrier or other distortion.
       (C) Time period.--The President may enter into a trade 
     agreement under this paragraph before--
       (i) June 1, 2005; or
       (ii) June 1, 2007, if trade authorities procedures are 
     extended under subsection (c).
       (2) Conditions.--A trade agreement may be entered into 
     under this subsection only if such agreement makes progress 
     in meeting the applicable objectives described in section 
     1102 (a) and (b) and the President satisfies the conditions 
     set forth in section 1104.
       (3) Bills qualifying for trade authorities procedures.--
       (A) Application of expedited procedures.--The provisions of 
     section 151 of the Trade Act of 1974 (in this division 
     referred to as ``trade authorities procedures'') apply to a 
     bill of either House of Congress which contains provisions 
     described in subparagraph (B) to the same extent as such 
     section 151 applies to implementing bills under that section. 
     A bill to which this paragraph applies shall hereafter in 
     this division be referred to as an ``implementing bill''.
       (B) Provisions described.--The provisions referred to in 
     subparagraph (A) are--
       (i) a provision approving a trade agreement entered into 
     under this subsection and approving the statement of 
     administrative action, if any, proposed to implement such 
     trade agreement; and
       (ii) if changes in existing laws or new statutory authority 
     are required to implement such trade agreement or agreements, 
     provisions, necessary or appropriate to implement such trade 
     agreement or agreements, either repealing or amending 
     existing laws or providing new statutory authority.
       (c) Extension Disapproval Process for Congressional Trade 
     Authorities Procedures.--
       (1) In general.--Except as provided in section 1105(b)--
       (A) the trade authorities procedures apply to implementing 
     bills submitted with respect to trade agreements entered into 
     under subsection (b) before July 1, 2005; and
       (B) the trade authorities procedures shall be extended to 
     implementing bills submitted with respect to trade agreements 
     entered into under subsection (b) after June 30, 2005, and 
     before July 1, 2007, if (and only if)--
       (i) the President requests such extension under paragraph 
     (2); and
       (ii) neither House of the Congress adopts an extension 
     disapproval resolution under paragraph (5) before June 1, 
     2005.
       (2) Report to congress by the president.--If the President 
     is of the opinion that the trade authorities procedures 
     should be extended to implementing bills described in 
     paragraph (1)(B), the President shall submit to the Congress, 
     not later than March 1, 2005, a written report that contains 
     a request for such extension, together with--
       (A) a description of all trade agreements that have been 
     negotiated under subsection (b) and the anticipated schedule 
     for submitting such agreements to the Congress for approval;
       (B) a description of the progress that has been made in 
     negotiations to achieve the purposes, policies, priorities, 
     and objectives of this division, and a statement that such 
     progress justifies the continuation of negotiations; and
       (C) a statement of the reasons why the extension is needed 
     to complete the negotiations.
       (3) Other reports to congress.--
       (A) Report by the advisory committee.--The President shall 
     promptly inform the Advisory Committee for Trade Policy and 
     Negotiations established under section 135 of the Trade Act 
     of 1974 (19 U.S.C. 2155) of the President's decision to 
     submit a report to the Congress under paragraph (2). The 
     Advisory Committee shall submit to the Congress as soon as 
     practicable, but not later than May 1, 2005, a written report 
     that contains--
       (i) its views regarding the progress that has been made in 
     negotiations to achieve the purposes, policies, priorities, 
     and objectives of this division; and
       (ii) a statement of its views, and the reasons therefor, 
     regarding whether the extension requested under paragraph (2) 
     should be approved or disapproved.
       (B) Report by itc.--The President shall promptly inform the 
     International Trade Commission of the President's decision to 
     submit a report to the Congress under paragraph (2). The 
     International Trade Commission shall submit to the Congress 
     as soon as practicable, but not later than May 1, 2005, a 
     written report that contains a review and analysis of the 
     economic impact on the United States of all trade agreements 
     implemented between the date of enactment of this Act and the 
     date on which the President decides to seek an extension 
     requested under paragraph (2).
       (4) Status of reports.--The reports submitted to the 
     Congress under paragraphs (2) and (3), or any portion of such 
     reports, may be classified to the extent the President 
     determines appropriate.
       (5) Extension disapproval resolutions.--
       (A) Definition.--For purposes of paragraph (1), the term 
     ``extension disapproval resolution'' means a resolution of 
     either House of the Congress, the sole matter after the 
     resolving clause of which is as follows: ``That the ____ 
     disapproves the request of the President for the extension, 
     under section 1103(c)(1)(B)(i) of the Bipartisan Trade 
     Promotion Authority Act of 2002, of the trade authorities 
     procedures under that Act to any implementing bill submitted 
     with respect to any trade agreement entered into under 
     section 1103(b) of that Act after June 30, 2005.'', with the 
     blank space being filled with the name of the resolving House 
     of the Congress.
       (B) Introduction.--Extension disapproval resolutions--
       (i) may be introduced in either House of the Congress by 
     any member of such House; and
       (ii) shall be referred, in the House of Representatives, to 
     the Committee on Ways and Means and, in addition, to the 
     Committee on Rules.
       (C) Application of section 152 of the trade act of 1974.--
     The provisions of section 152 (d) and (e) of the Trade Act of 
     1974 (19 U.S.C. 2192 (d) and (e)) (relating to the floor 
     consideration of certain resolutions in the House and Senate) 
     apply to extension disapproval resolutions.
       (D) Limitations.--It is not in order for--
       (i) the Senate to consider any extension disapproval 
     resolution not reported by the Committee on Finance;
       (ii) the House of Representatives to consider any extension 
     disapproval resolution not reported by the Committee on Ways 
     and Means and, in addition, by the Committee on Rules; or
       (iii) either House of the Congress to consider an extension 
     disapproval resolution after June 30, 2005.
       (d) Commencement of Negotiations.--In order to contribute 
     to the continued economic expansion of the United States, the 
     President shall commence negotiations covering tariff and 
     nontariff barriers affecting any industry, product, or 
     service sector, and

[[Page S4171]]

     expand existing sectoral agreements to countries that are not 
     parties to those agreements, in cases where the President 
     determines that such negotiations are feasible and timely and 
     would benefit the United States. Such sectors include 
     agriculture, commercial services, intellectual property 
     rights, industrial and capital goods, government procurement, 
     information technology products, environmental technology and 
     services, medical equipment and services, civil aircraft, and 
     infrastructure products. In so doing, the President shall 
     take into account all of the principal negotiating objectives 
     set forth in section 1102(b).

     SEC. 1104. CONSULTATIONS AND ASSESSMENT.

       (a) Notice and Consultation Before Negotiation.--The 
     President, with respect to any agreement that is subject to 
     the provisions of section 1103(b), shall--
       (1) provide, at least 90 calendar days before initiating 
     negotiations, written notice to the Congress of the 
     President's intention to enter into the negotiations and set 
     forth therein the date the President intends to initiate such 
     negotiations, the specific United States objectives for the 
     negotiations, and whether the President intends to seek an 
     agreement, or changes to an existing agreement;
       (2) before and after submission of the notice, consult 
     regarding the negotiations with the Committee on Finance of 
     the Senate and the Committee on Ways and Means of the House 
     of Representatives, such other committees of the House and 
     Senate as the President deems appropriate, and the 
     Congressional Oversight group convened under section 1107; 
     and
       (3) upon the request of a majority of the members of the 
     Congressional Oversight Group under section 1107(c), meet 
     with the Congressional Oversight Group before initiating the 
     negotiations or at any other time concerning the 
     negotiations.
       (b) Negotiations Regarding Agriculture and Fishing 
     Industry.--
       (1) In general.--Before initiating or continuing 
     negotiations the subject matter of which is directly related 
     to the subject matter under section 1102(b)(10)(A)(i) with 
     any country, the President shall assess whether United States 
     tariffs on agricultural products that were bound under the 
     Uruguay Round Agreements are lower than the tariffs bound by 
     that country. In addition, the President shall consider 
     whether the tariff levels bound and applied throughout the 
     world with respect to imports from the United States are 
     higher than United States tariffs and whether the negotiation 
     provides an opportunity to address any such disparity. The 
     President shall consult with the Committee on Ways and Means 
     and the Committee on Agriculture of the House of 
     Representatives and the Committee on Finance and the 
     Committee on Agriculture, Nutrition, and Forestry of the 
     Senate concerning the results of the assessment, whether it 
     is appropriate for the United States to agree to further 
     tariff reductions based on the conclusions reached in the 
     assessment, and how all applicable negotiating objectives 
     will be met.
       (2) Special consultations on import sensitive products.--
       (A) In general.--Before initiating negotiations with regard 
     to agriculture, and, with respect to the Free Trade Area for 
     the Americas and negotiations with regard to agriculture 
     under the auspices of the World Trade Organization, as soon 
     as practicable after the date of enactment of this Act, the 
     United States Trade Representative shall--
       (i) identify those agricultural products subject to tariff-
     rate quotas on the date of enactment of this Act, and 
     agricultural products subject to tariff reductions by the 
     United States as a result of the Uruguay Round Agreements, 
     for which the rate of duty was reduced on January 1, 1995, to 
     a rate which was not less than 97.5 percent of the rate of 
     duty that applied to such article on December 31, 1994;
       (ii) consult with the Committee on Ways and Means and the 
     Committee on Agriculture of the House of Representatives and 
     the Committee on Finance and the Committee on Agriculture, 
     Nutrition, and Forestry of the Senate concerning--

       (I) whether any further tariff reductions on the products 
     identified under clause (i) should be appropriate, taking 
     into account the impact of any such tariff reduction on the 
     United States industry producing the product concerned;
       (II) whether the products so identified face unjustified 
     sanitary or phytosanitary restrictions, including those not 
     based on scientific principles in contravention of the 
     Uruguay Round Agreements; and
       (III) whether the countries participating in the 
     negotiations maintain export subsidies or other programs, 
     policies, or practices that distort world trade in such 
     products and the impact of such programs, policies, and 
     practices on United States producers of the products;

       (iii) request that the International Trade Commission 
     prepare an assessment of the probable economic effects of any 
     such tariff reduction on the United States industry producing 
     the product concerned and on the United States economy as a 
     whole; and
       (iv) upon complying with clauses (i), (ii), and (iii), 
     notify the Committee on Ways and Means and the Committee on 
     Agriculture of the House of Representatives and the Committee 
     on Finance and the Committee on Agriculture, Nutrition, and 
     Forestry of the Senate of those products identified under 
     clause (i) for which the Trade Representative intends to seek 
     tariff liberalization in the negotiations and the reasons for 
     seeking such tariff liberalization.
       (B) Identification of additional agricultural products.--
     If, after negotiations described in subparagraph (A) are 
     commenced--
       (i) the United States Trade Representative identifies any 
     additional agricultural product described in subparagraph 
     (A)(i) for tariff reductions which were not the subject of a 
     notification under subparagraph (A)(iv), or
       (ii) any additional agricultural product described in 
     subparagraph (A)(i) is the subject of a request for tariff 
     reductions by a party to the negotiations,

     the Trade Representative shall, as soon as practicable, 
     notify the committees referred to in subparagraph (A)(iv) of 
     those products and the reasons for seeking such tariff 
     reductions.
       (3) Negotiations regarding the fishing industry.--Before 
     initiating, or continuing, negotiations which directly relate 
     to fish or shellfish trade with any country, the President 
     shall consult with the Committee on Ways and Means and the 
     Committee on Resources of the House of Representatives, and 
     the Committee on Finance and the Committee on Commerce, 
     Science, and Transportation of the Senate, and shall keep the 
     Committees apprised of negotiations on an ongoing and timely 
     basis.
       (c) Negotiations Regarding Textiles.--Before initiating or 
     continuing negotiations the subject matter of which is 
     directly related to textiles and apparel products with any 
     country, the President shall assess whether United States 
     tariffs on textile and apparel products that were bound under 
     the Uruguay Round Agreements are lower than the tariffs bound 
     by that country and whether the negotiation provides an 
     opportunity to address any such disparity. The President 
     shall consult with the Committee on Ways and Means of the 
     House of Representatives and the Committee on Finance of the 
     Senate concerning the results of the assessment, whether it 
     is appropriate for the United States to agree to further 
     tariff reductions based on the conclusions reached in the 
     assessment, and how all applicable negotiating objectives 
     will be met.
       (d) Consultation With Congress Before Agreements Entered 
     Into.--
       (1) Consultation.--Before entering into any trade agreement 
     under section 1103(b), the President shall consult with--
       (A) the Committee on Ways and Means of the House of 
     Representatives and the Committee on Finance of the Senate;
       (B) each other committee of the House and the Senate, and 
     each joint committee of the Congress, which has jurisdiction 
     over legislation involving subject matters which would be 
     affected by the trade agreement; and
       (C) the Congressional Oversight Group convened under 
     section 1107.
       (2) Scope.--The consultation described in paragraph (1) 
     shall include consultation with respect to--
       (A) the nature of the agreement;
       (B) how and to what extent the agreement will achieve the 
     applicable purposes, policies, priorities, and objectives of 
     this division; and
       (C) the implementation of the agreement under section 1105, 
     including the general effect of the agreement on existing 
     laws.
       (3) Report regarding united states trade remedy laws.--
       (A) Changes in certain trade laws.--The President, at least 
     90 calendar days before the day on which the President enters 
     into a trade agreement, shall notify the Committee on Ways 
     and Means of the House of Representatives and the Committee 
     on Finance of the Senate in writing of any amendments to 
     title VII of the Tariff Act of 1930 or chapter 1 of title II 
     of the Trade Act of 1974 that the President proposes to 
     include in a bill implementing such trade agreement.
       (B) Explanation.--On the date that the President transmits 
     the notification, the President also shall transmit to the 
     Committees a report explaining--
       (i) the President's reasons for believing that amendments 
     to title VII of the Tariff Act of 1930 or to chapter 1 of 
     title II of the Trade Act of 1974 are necessary to implement 
     the trade agreement; and
       (ii) the President's reasons for believing that such 
     amendments are consistent with the purposes, policies, and 
     objectives described in section 1102(c)(9).
       (C) Report to house.--Not later than 60 calendar days after 
     the date on which the President transmits the notification 
     described in subparagraph (A), the Chairman and ranking 
     member of the Ways and Means Committee of the House of 
     Representatives, based on consultations with the members of 
     that Committee, shall issue to the House of Representatives a 
     report stating whether the proposed amendments described in 
     the President's notification are consistent with the 
     purposes, policies, and objectives described in section 
     1102(c)(9). In the event that the Chairman and ranking member 
     disagree with respect to one or more conclusions, the report 
     shall contain the separate views of the Chairman and ranking 
     member.
       (D) Report to senate.--Not later than 60 calendar days 
     after the date on which the President transmits the 
     notification described in subparagraph (A), the Chairman and 
     ranking member of the Finance Committee of the Senate, based 
     on consultations with the members of that Committee, shall 
     issue to the Senate a report stating whether

[[Page S4172]]

     the proposed amendments described in the President's report 
     are consistent with the purposes, policies, and objectives 
     described in section 1102(c)(9). In the event that the 
     Chairman and ranking member disagree with respect to one or 
     more conclusions, the report shall contain the separate views 
     of the Chairman and ranking member.
       (e) Advisory Committee Reports.--The report required under 
     section 135(e)(1) of the Trade Act of 1974 regarding any 
     trade agreement entered into under section 1103 (a) or (b) of 
     this division shall be provided to the President, the 
     Congress, and the United States Trade Representative not 
     later than 30 days after the date on which the President 
     notifies the Congress under section 1103(a)(1) or 
     1105(a)(1)(A) of the President's intention to enter into the 
     agreement.
       (f) ITC Assessment.--
       (1) In general.--The President, at least 90 calendar days 
     before the day on which the President enters into a trade 
     agreement under section 1103(b), shall provide the 
     International Trade Commission (referred to in this 
     subsection as ``the Commission'') with the details of the 
     agreement as it exists at that time and request the 
     Commission to prepare and submit an assessment of the 
     agreement as described in paragraph (2). Between the time the 
     President makes the request under this paragraph and the time 
     the Commission submits the assessment, the President shall 
     keep the Commission current with respect to the details of 
     the agreement.
       (2) ITC assessment.--Not later than 90 calendar days after 
     the President enters into the agreement, the Commission shall 
     submit to the President and the Congress a report assessing 
     the likely impact of the agreement on the United States 
     economy as a whole and on specific industry sectors, 
     including the impact the agreement will have on the gross 
     domestic product, exports and imports, aggregate employment 
     and employment opportunities, the production, employment, and 
     competitive position of industries likely to be significantly 
     affected by the agreement, and the interests of United States 
     consumers.
       (3) Review of empirical literature.--In preparing the 
     assessment, the Commission shall review available economic 
     assessments regarding the agreement, including literature 
     regarding any substantially equivalent proposed agreement, 
     and shall provide in its assessment a description of the 
     analyses used and conclusions drawn in such literature, and a 
     discussion of areas of consensus and divergence between the 
     various analyses and conclusions, including those of the 
     Commission regarding the agreement.

     SEC. 1105. IMPLEMENTATION OF TRADE AGREEMENTS.

       (a) In General.--
       (1) Notification and submission.--Any agreement entered 
     into under section 1103(b) shall enter into force with 
     respect to the United States if (and only if)--
       (A) the President, at least 90 calendar days before the day 
     on which the President enters into an agreement--
       (i) notifies the House of Representatives and the Senate of 
     the President's intention to enter into the agreement, and 
     promptly thereafter publishes notice of such intention in the 
     Federal Register; and
       (ii) transmits to the Committee on Ways and Means of the 
     House of Representatives and the Committee on Finance of the 
     Senate the notification and report described in section 
     1104(d)(3) (A) and (B);
       (B) within 60 days after entering into the agreement, the 
     President submits to the Congress a description of those 
     changes to existing laws that the President considers would 
     be required in order to bring the United States into 
     compliance with the agreement;
       (C) after entering into the agreement, the President 
     submits to the Congress, on a day on which both Houses of 
     Congress are in session, a copy of the final legal text of 
     the agreement, together with--
       (i) a draft of an implementing bill described in section 
     1103(b)(3);
       (ii) a statement of any administrative action proposed to 
     implement the trade agreement; and
       (iii) the supporting information described in paragraph 
     (2); and
       (D) the implementing bill is enacted into law.
       (2) Supporting information.--The supporting information 
     required under paragraph (1)(C)(iii) consists of--
       (A) an explanation as to how the implementing bill and 
     proposed administrative action will change or affect existing 
     law; and
       (B) a statement--
       (i) asserting that the agreement makes progress in 
     achieving the applicable purposes, policies, priorities, and 
     objectives of this division; and
       (ii) setting forth the reasons of the President regarding--

       (I) how and to what extent the agreement makes progress in 
     achieving the applicable purposes, policies, and objectives 
     referred to in clause (i);
       (II) whether and how the agreement changes provisions of an 
     agreement previously negotiated;
       (III) how the agreement serves the interests of United 
     States commerce;
       (IV) how the implementing bill meets the standards set 
     forth in section 1103(b)(3);
       (V) how and to what extent the agreement makes progress in 
     achieving the applicable purposes, policies, and objectives 
     referred to in section 1102(c) regarding the promotion of 
     certain priorities; and
       (VI) in the event that the reports described in section 
     1104(b)(3) (C) and (D) contain any findings that the proposed 
     amendments are inconsistent with the purposes, policies, and 
     objectives described in section 1102(c)(9), an explanation as 
     to why the President believes such findings to be incorrect.

       (3) Reciprocal benefits.--In order to ensure that a foreign 
     country that is not a party to a trade agreement entered into 
     under section 1103(b) does not receive benefits under the 
     agreement unless the country is also subject to the 
     obligations under the agreement, the implementing bill 
     submitted with respect to the agreement shall provide that 
     the benefits and obligations under the agreement apply only 
     to the parties to the agreement, if such application is 
     consistent with the terms of the agreement. The implementing 
     bill may also provide that the benefits and obligations under 
     the agreement do not apply uniformly to all parties to the 
     agreement, if such application is consistent with the terms 
     of the agreement.
       (4) Disclosure of commitments.--Any agreement or other 
     understanding with a foreign government or governments 
     (whether oral or in writing) that--
       (A) relates to a trade agreement with respect to which 
     Congress enacts implementing legislation under trade 
     authorities procedures, and
       (B) is not disclosed to Congress before legislation 
     implementing that agreement is introduced in either House of 
     Congress,

     shall not be considered to be part of the agreement approved 
     by Congress and shall have no force and effect under United 
     States law or in any dispute settlement body.
       (b) Limitations on Trade Authorities Procedures.--
       (1) For lack of notice or consultations.--
       (A) In general.--The trade authorities procedures shall not 
     apply to any implementing bill submitted with respect to a 
     trade agreement or trade agreements entered into under 
     section 1103(b) if during the 60-day period beginning on the 
     date that one House of Congress agrees to a procedural 
     disapproval resolution for lack of notice or consultations 
     with respect to such trade agreement or agreements, the other 
     House separately agrees to a procedural disapproval 
     resolution with respect to such trade agreement or 
     agreements.
       (B) Procedural disapproval resolution.--(i) For purposes of 
     this paragraph, the term ``procedural disapproval 
     resolution'' means a resolution of either House of Congress, 
     the sole matter after the resolving clause of which is as 
     follows: ``That the President has failed or refused to notify 
     or consult in accordance with the Bipartisan Trade Promotion 
     Authority Act of 2002 on negotiations with respect to 
     ____________ and, therefore, the trade authorities procedures 
     under that Act shall not apply to any implementing bill 
     submitted with respect to such trade agreement or 
     agreements.'', with the blank space being filled with a 
     description of the trade agreement or agreements with respect 
     to which the President is considered to have failed or 
     refused to notify or consult.
       (ii) For purposes of clause (i), the President has ``failed 
     or refused to notify or consult in accordance with the 
     Bipartisan Trade Promotion Authority Act of 2002'' on 
     negotiations with respect to a trade agreement or trade 
     agreements if--
       (I) the President has failed or refused to consult (as the 
     case may be) in accordance with section 1104 or 1105 with 
     respect to the negotiations, agreement, or agreements;
       (II) guidelines under section 1107(b) have not been 
     developed or met with respect to the negotiations, agreement, 
     or agreements;
       (III) the President has not met with the Congressional 
     Oversight Group pursuant to a request made under section 
     1107(c) with respect to the negotiations, agreement, or 
     agreements; or
       (IV) the agreement or agreements fail to make progress in 
     achieving the purposes, policies, priorities, and objectives 
     of this division.
       (C) Procedures for considering resolutions.--(i) Procedural 
     disapproval resolutions--
       (I) in the House of Representatives--

       (aa) may be introduced by any Member of the House;
       (bb) shall be referred to the Committee on Ways and Means 
     and, in addition, to the Committee on Rules; and
       (cc) may not be amended by either Committee; and

       (II) in the Senate--

       (aa) may be introduced by any Member of the Senate.
       (bb) shall be referred to the Committee on Finance; and
       (cc) may not be amended.

       (ii) The provisions of section 152(d) and (e) of the Trade 
     Act of 1974 (19 U.S.C. 2192(d) and (e)) (relating to the 
     floor consideration of certain resolutions in the House and 
     Senate) apply to a procedural disapproval resolution 
     introduced with respect to a trade agreement if no other 
     procedural disapproval resolution with respect to that trade 
     agreement has previously been considered under such 
     provisions of section 152 of the Trade Act of 1974 in that 
     House of Congress during that Congress.
       (iii) It is not in order for the House of Representatives 
     to consider any procedural disapproval resolution not 
     reported by the Committee on Ways and Means and, in addition, 
     by the Committee on Rules.

[[Page S4173]]

       (iv) It is not in order for the Senate to consider any 
     procedural disapproval resolution not reported by the 
     Committee on Finance.
       (2) For failure to meet other requirements.--Prior to 
     December 31, 2002, the Secretary of Commerce shall transmit 
     to Congress a report setting forth the strategy of the United 
     States for correcting instances in which dispute settlement 
     panels and the Appellate Body of the WTO have added to 
     obligations or diminished rights of the United States, as 
     described in section 1101(b)(3). Trade authorities procedures 
     shall not apply to any implementing bill with respect to an 
     agreement negotiated under the auspices of the WTO, unless 
     the Secretary of Commerce has issued such report in a timely 
     manner.
       (c) Rules of House of Representatives and Senate.--
     Subsection (b) of this section and section 1103(c) are 
     enacted by the Congress--
       (1) as an exercise of the rulemaking power of the House of 
     Representatives and the Senate, respectively, and as such are 
     deemed a part of the rules of each House, respectively, and 
     such procedures supersede other rules only to the extent that 
     they are inconsistent with such other rules; and
       (2) with the full recognition of the constitutional right 
     of either House to change the rules (so far as relating to 
     the procedures of that House) at any time, in the same 
     manner, and to the same extent as any other rule of that 
     House.

     SEC. 1106. TREATMENT OF CERTAIN TRADE AGREEMENTS FOR WHICH 
                   NEGOTIATIONS HAVE ALREADY BEGUN.

       (a) Certain Agreements.--Notwithstanding the prenegotiation 
     notification and consultation requirement described in 
     section 1104(a), if an agreement to which section 1103(b) 
     applies--
       (1) is entered into under the auspices of the World Trade 
     Organization,
       (2) is entered into with Chile,
       (3) is entered into with Singapore, or
       (4) establishes a Free Trade Area for the Americas,

     and results from negotiations that were commenced before the 
     date of the enactment of this Act, subsection (b) shall 
     apply.
       (b) Treatment of Agreements.--In the case of any agreement 
     to which subsection (a) applies--
       (1) the applicability of the trade authorities procedures 
     to implementing bills shall be determined without regard to 
     the requirements of section 1104(a) (relating only to 90 days 
     notice prior to initiating negotiations), and any procedural 
     disapproval resolution under section 1105(b)(1)(B) shall not 
     be in order on the basis of a failure or refusal to comply 
     with the provisions of section 1104(a); and
       (2) the President shall, as soon as feasible after the date 
     of enactment of this Act--
       (A) notify the Congress of the negotiations described in 
     subsection (a), the specific United States objectives in the 
     negotiations, and whether the President is seeking a new 
     agreement or changes to an existing agreement; and
       (B) before and after submission of the notice, consult 
     regarding the negotiations with the committees referred to in 
     section 1104(a)(2) and the Congressional Oversight Group.

     SEC. 1107. CONGRESSIONAL OVERSIGHT GROUP.

       (a) Members and Functions.--
       (1) In general.--By not later than 60 days after the date 
     of the enactment of this Act, and not later than 30 days 
     after the convening of each Congress, the chairman of the 
     Committee on Ways and Means of the House of Representatives 
     and the chairman of the Committee on Finance of the Senate 
     shall convene the Congressional Oversight Group.
       (2) Membership from the house.--In each Congress, the 
     Congressional Oversight Group shall be comprised of the 
     following Members of the House of Representatives:
       (A) The chairman and ranking member of the Committee on 
     Ways and Means, and 3 additional members of such Committee 
     (not more than 2 of whom are members of the same political 
     party).
       (B) The chairman and ranking member, or their designees, of 
     the committees of the House of Representatives which would 
     have, under the Rules of the House of Representatives, 
     jurisdiction over provisions of law affected by a trade 
     agreement negotiations for which are conducted at any time 
     during that Congress and to which this division would apply.
       (3) Membership from the senate.--In each Congress, the 
     Congressional Oversight Group shall also be comprised of the 
     following members of the Senate:
       (A) The chairman and ranking Member of the Committee on 
     Finance and 3 additional members of such Committee (not more 
     than 2 of whom are members of the same political party).
       (B) The chairman and ranking member, or their designees, of 
     the committees of the Senate which would have, under the 
     Rules of the Senate, jurisdiction over provisions of law 
     affected by a trade agreement negotiations for which are 
     conducted at any time during that Congress and to which this 
     division would apply.
       (4) Accreditation.--Each member of the Congressional 
     Oversight Group described in paragraph (2)(A) and (3)(A) 
     shall be accredited by the United States Trade Representative 
     on behalf of the President as official advisers to the United 
     States delegation in negotiations for any trade agreement to 
     which this division applies. Each member of the Congressional 
     Oversight Group described in paragraph (2)(B) and (3)(B) 
     shall be accredited by the United States Trade Representative 
     on behalf of the President as official advisers to the United 
     States delegation in the negotiations by reason of which the 
     member is in the Congressional Oversight Group. The 
     Congressional Oversight Group shall consult with and provide 
     advice to the Trade Representative regarding the formulation 
     of specific objectives, negotiating strategies and positions, 
     the development of the applicable trade agreement, and 
     compliance and enforcement of the negotiated commitments 
     under the trade agreement.
       (5) Chair.--The Congressional Oversight Group shall be 
     chaired by the Chairman of the Committee on Ways and Means of 
     the House of Representatives and the Chairman of the 
     Committee on Finance of the Senate.
       (b) Guidelines.--
       (1) Purpose and revision.--The United States Trade 
     Representative, in consultation with the chairmen and ranking 
     minority members of the Committee on Ways and Means of the 
     House of Representatives and the Committee on Finance of the 
     Senate--
       (A) shall, within 120 days after the date of the enactment 
     of this Act, develop written guidelines to facilitate the 
     useful and timely exchange of information between the Trade 
     Representative and the Congressional Oversight Group 
     established under this section; and
       (B) may make such revisions to the guidelines as may be 
     necessary from time to time.
       (2) Content.--The guidelines developed under paragraph (1) 
     shall provide for, among other things--
       (A) regular, detailed briefings of the Congressional 
     Oversight Group regarding negotiating objectives, including 
     the promotion of certain priorities referred to in section 
     1102(c), and positions and the status of the applicable 
     negotiations, beginning as soon as practicable after the 
     Congressional Oversight Group is convened, with more frequent 
     briefings as trade negotiations enter the final stage;
       (B) access by members of the Congressional Oversight Group, 
     and staff with proper security clearances, to pertinent 
     documents relating to the negotiations, including classified 
     materials;
       (C) the closest practicable coordination between the Trade 
     Representative and the Congressional Oversight Group at all 
     critical periods during the negotiations, including at 
     negotiation sites;
       (D) after the applicable trade agreement is concluded, 
     consultation regarding ongoing compliance and enforcement of 
     negotiated commitments under the trade agreement; and
       (E) the time frame for submitting the report required under 
     section 1102(c)(8).
       (c) Request for Meeting.--Upon the request of a majority of 
     the Congressional Oversight Group, the President shall meet 
     with the Congressional Oversight Group before initiating 
     negotiations with respect to a trade agreement, or at any 
     other time concerning the negotiations.

     SEC. 1108. ADDITIONAL IMPLEMENTATION AND ENFORCEMENT 
                   REQUIREMENTS.

       (a) In General.--At the time the President submits to the 
     Congress the final text of an agreement pursuant to section 
     1105(a)(1)(C), the President shall also submit a plan for 
     implementing and enforcing the agreement. The implementation 
     and enforcement plan shall include the following:
       (1) Border personnel requirements.--A description of 
     additional personnel required at border entry points, 
     including a list of additional customs and agricultural 
     inspectors.
       (2) Agency staffing requirements.--A description of 
     additional personnel required by Federal agencies responsible 
     for monitoring and implementing the trade agreement, 
     including personnel required by the Office of the United 
     States Trade Representative, the Department of Commerce, the 
     Department of Agriculture (including additional personnel 
     required to implement sanitary and phytosanitary measures in 
     order to obtain market access for United States exports), the 
     Department of the Treasury, and such other agencies as may be 
     necessary.
       (3) Customs infrastructure requirements.--A description of 
     the additional equipment and facilities needed by the United 
     States Customs Service.
       (4) Impact on state and local governments.--A description 
     of the impact the trade agreement will have on State and 
     local governments as a result of increases in trade.
       (5) Cost analysis.--An analysis of the costs associated 
     with each of the items listed in paragraphs (1) through (4).
       (b) Budget Submission.--The President shall include a 
     request for the resources necessary to support the plan 
     described in subsection (a) in the first budget that the 
     President submits to the Congress after the submission of the 
     plan.

     SEC. 1109. COMMITTEE STAFF.

       The grant of trade promotion authority under this division 
     is likely to increase the activities of the primary 
     committees of jurisdiction in the area of international 
     trade. In addition, the creation of the Congressional 
     Oversight Group under section 1107 will increase the 
     participation of a broader number of Members of Congress in 
     the formulation of United States trade policy and oversight 
     of the international trade agenda for the United States. The 
     primary committees of jurisdiction should have adequate staff 
     to accommodate these increases in activities.

[[Page S4174]]

     SEC. 1110. CONFORMING AMENDMENTS.

       (a) In General.--Title I of the Trade Act of 1974 (19 
     U.S.C. 2111 et seq.) is amended as follows:
       (1) Implementing bill.--
       (A) Section 151(b)(1) (19 U.S.C. 2191(b)(1)) is amended by 
     striking ``section 1103(a)(1) of the Omnibus Trade and 
     Competitiveness Act of 1988, or section 282 of the Uruguay 
     Round Agreements Act'' and inserting ``section 282 of the 
     Uruguay Round Agreements Act, or section 1105(a)(1) of the 
     Bipartisan Trade Promotion Authority Act of 2002''.
       (B) Section 151(c)(1) (19 U.S.C. 2191(c)(1)) is amended by 
     striking ``or section 282 of the Uruguay Round Agreements 
     Act'' and inserting ``, section 282 of the Uruguay Round 
     Agreements Act, or section 1105(a)(1) of the Bipartisan Trade 
     Promotion Authority Act of 2002''.
       (2) Advice from international trade commission.--Section 
     131 (19 U.S.C. 2151) is amended--
       (A) in subsection (a)--
       (i) in paragraph (1), by striking ``section 123 of this Act 
     or section 1102 (a) or (c) of the Omnibus Trade and 
     Competitiveness Act of 1988,'' and inserting ``section 123 of 
     this Act or section 1103 (a) or (b) of the Bipartisan Trade 
     Promotion Authority Act of 2002,''; and
       (ii) in paragraph (2), by striking ``section 1102 (b) or 
     (c) of the Omnibus Trade and Competitiveness Act of 1988'' 
     and inserting ``section 1103(b) of the Bipartisan Trade 
     Promotion Authority Act of 2002'';
       (B) in subsection (b), by striking ``section 
     1102(a)(3)(A)'' and inserting ``section 1103(a)(3)(A) of the 
     Bipartisan Trade Promotion Authority Act of 2002''; and
       (C) in subsection (c), by striking ``section 1102 of the 
     Omnibus Trade and Competitiveness Act of 1988,'' and 
     inserting ``section 1103 of the Bipartisan Trade Promotion 
     Authority Act of 2002,''.
       (3) Hearings and advice.--Sections 132, 133(a), and 134(a) 
     (19 U.S.C. 2152, 2153(a), and 2154(a)) are each amended by 
     striking ``section 1102 of the Omnibus Trade and 
     Competitiveness Act of 1988,'' each place it appears and 
     inserting ``section 1103 of the Bipartisan Trade Promotion 
     Authority Act of 2002,''.
       (4) Prerequisites for offers.--Section 134(b) (19 U.S.C. 
     2154(b)) is amended by striking ``section 1102 of the Omnibus 
     Trade and Competitiveness Act of 1988'' and inserting 
     ``section 1103 of the Bipartisan Trade Promotion Authority 
     Act of 2002''.
       (5) Advice from private and public sectors.--Section 135 
     (19 U.S.C. 2155) is amended--
       (A) in subsection (a)(1)(A), by striking ``section 1102 of 
     the Omnibus Trade and Competitiveness Act of 1988'' and 
     inserting ``section 1103 of the Bipartisan Trade Promotion 
     Authority Act of 2002'';
       (B) in subsection (e)(1)--
       (i) by striking ``section 1102 of the Omnibus Trade and 
     Competitiveness Act of 1988'' each place it appears and 
     inserting ``section 1103 of the Bipartisan Trade Promotion 
     Authority Act of 2002''; and
       (ii) by striking ``not later than the date on which the 
     President notifies the Congress under section 1103(a)(1)(A) 
     of such Act of 1988 of his intention to enter into that 
     agreement'' and inserting ``not later than the date that is 
     30 days after the date on which the President notifies the 
     Congress under section 1105(a)(1)(A) of the Bipartisan Trade 
     Promotion Authority Act of 2002 of the President's intention 
     to enter into that agreement''; and
       (C) in subsection (e)(2), by striking ``section 1101 of the 
     Omnibus Trade and Competitiveness Act of 1988'' and inserting 
     ``section 1102 of the Bipartisan Trade Promotion Authority 
     Act of 2002''.
       (6) Transmission of agreements to congress.--Section 162(a) 
     (19 U.S.C. 2212(a)) is amended by striking ``or under section 
     1102 of the Omnibus Trade and Competitiveness Act of 1988'' 
     and inserting ``or under section 1103 of the Bipartisan Trade 
     Promotion Authority Act of 2002''.
       (b) Application of Certain Provisions.--For purposes of 
     applying sections 125, 126, and 127 of the Trade Act of 1974 
     (19 U.S.C. 2135, 2136(a), and 2137)--
       (1) any trade agreement entered into under section 1103 
     shall be treated as an agreement entered into under section 
     101 or 102, as appropriate, of the Trade Act of 1974 (19 
     U.S.C. 2111 or 2112); and
       (2) any proclamation or Executive order issued pursuant to 
     a trade agreement entered into under section 1103 shall be 
     treated as a proclamation or Executive order issued pursuant 
     to a trade agreement entered into under section 102 of the 
     Trade Act of 1974.

     SEC. 1111. REPORT ON IMPACT OF TRADE PROMOTION AUTHORITY.

       (a) In General.--Not later than 1 year after the date of 
     enactment of this Act, the International Trade Commission 
     shall report to the Committee on Finance of the Senate and 
     the Committee on Ways and Means of the House of 
     Representatives regarding the economic impact on the United 
     States of the trade agreements described in subsection (b).
       (b) Agreements.--The trade agreements described in this 
     subsection are:
       (1) The United States-Israel Free Trade Agreement.
       (2) The United States-Canada Free Trade Agreement.
       (3) The North American Free Trade Agreement.
       (4) The Uruguay Round Agreements.
       (5) The Tokyo Round of Multilateral Trade Negotiations.

     SEC. 1112. IDENTIFICATION OF SMALL BUSINESS ADVOCATE AT WTO.

       (a) In General.--The United States Trade Representative 
     shall pursue the identification of a small business advocate 
     at the World Trade Organization Secretariat to examine the 
     impact of WTO agreements on the interests of small- and 
     medium-sized enterprises, address the concerns of small- and 
     medium-sized enterprises, and recommend ways to address those 
     interests in trade negotiations involving the World Trade 
     Organization.
       (b) Assistant Trade Representative.--The Assistant United 
     States Trade Representative for Industry and 
     Telecommunications shall be responsible for ensuring that the 
     interests of small business are considered in all trade 
     negotiations in accordance with the objective described in 
     section 1102(a)(8). It is the sense of Congress that the 
     small business functions should be reflected in the title of 
     the Assistant United States Trade Representative assigned the 
     responsibility for small business.
       (c) Report.--Not later than 1 year after the date of 
     enactment of this Act, and annually thereafter, the United 
     States Trade Representative shall prepare and submit a report 
     to the Committee on Finance of the Senate and the Committee 
     on Ways and Means of the House of Representatives on the 
     steps taken by the United States Trade Representative to 
     pursue the identification of a small business advocate at the 
     World Trade Organization.

     SEC. 1113. DEFINITIONS.

       In this division:
       (1) Agreement on agriculture.--The term ``Agreement on 
     Agriculture'' means the agreement referred to in section 
     101(d)(2) of the Uruguay Round Agreements Act (19 U.S.C. 
     3511(d)(2)).
       (2) Core labor standards.--The term ``core labor 
     standards'' means--
       (A) the right of association;
       (B) the right to organize and bargain collectively;
       (C) a prohibition on the use of any form of forced or 
     compulsory labor;
       (D) a minimum age for the employment of children; and
       (E) acceptable conditions of work with respect to minimum 
     wages, hours of work, and occupational safety and health.
       (3) GATT 1994.--The term ``GATT 1994'' has the meaning 
     given that term in section 2 of the Uruguay Round Agreements 
     Act (19 U.S.C. 3501).
       (4) ILO.--The term ``ILO'' means the International Labor 
     Organization.
       (5) United states person.--The term ``United States 
     person'' means--
       (A) a United States citizen;
       (B) a partnership, corporation, or other legal entity 
     organized under the laws of the United States; and
       (C) a partnership, corporation, or other legal entity that 
     is organized under the laws of a foreign country and is 
     controlled by entities described in subparagraph (B) or 
     United States citizens, or both.
       (6) Uruguay round agreements.--The term ``Uruguay Round 
     Agreements'' has the meaning given that term in section 2(7) 
     of the Uruguay Round Agreements Act (19 U.S.C. 3501(7)).
       (7) World trade organization; wto.--The terms ``World Trade 
     Organization'' and ``WTO'' mean the organization established 
     pursuant to the WTO Agreement.
       (8) WTO agreement.--The term ``WTO Agreement'' means the 
     Agreement Establishing the World Trade Organization entered 
     into on April 15, 1994.

                  DIVISION B--ANDEAN TRADE PREFERENCE

                   TITLE XXI--ANDEAN TRADE PREFERENCE

     SEC. 2101. SHORT TITLE.

       This division may be cited as the ``Andean Trade Preference 
     Expansion Act''.

     SEC. 2102. FINDINGS.

       Congress makes the following findings:
       (1) Since the Andean Trade Preference Act was enacted in 
     1991, it has had a positive impact on United States trade 
     with Bolivia, Colombia, Ecuador, and Peru. Two-way trade has 
     doubled, with the United States serving as the leading source 
     of imports and leading export market for each of the Andean 
     beneficiary countries. This has resulted in increased jobs 
     and expanded export opportunities in both the United 
     States and the Andean region.
       (2) The Andean Trade Preference Act has been a key element 
     in the United States counternarcotics strategy in the Andean 
     region, promoting export diversification and broad-based 
     economic development that provides sustainable economic 
     alternatives to drug-crop production, strengthening the 
     legitimate economies of Andean countries and creating viable 
     alternatives to illicit trade in coca.
       (3) Notwithstanding the success of the Andean Trade 
     Preference Act, the Andean region remains threatened by 
     political and economic instability and fragility, vulnerable 
     to the consequences of the drug war and fierce global 
     competition for its legitimate trade.
       (4) The continuing instability in the Andean region poses a 
     threat to the security interests of the United States and the 
     world. This problem has been partially addressed through 
     foreign aid, such as Plan Colombia, enacted by Congress in 
     2000. However, foreign aid alone is not sufficient. 
     Enhancement of legitimate trade with the United States 
     provides an alternative means for reviving and stabilizing 
     the economies in the Andean region.

[[Page S4175]]

       (5) The Andean Trade Preference Act constitutes a tangible 
     commitment by the United States to the promotion of 
     prosperity, stability, and democracy in the beneficiary 
     countries.
       (6) Renewal and enhancement of the Andean Trade Preference 
     Act will bolster the confidence of domestic private 
     enterprise and foreign investors in the economic prospects of 
     the region, ensuring that legitimate private enterprise can 
     be the engine of economic development and political stability 
     in the region.
       (7) Each of the Andean beneficiary countries is committed 
     to conclude negotiation of a Free Trade Area of the Americas 
     by the year 2005, as a means of enhancing the economic 
     security of the region.
       (8) Temporarily enhancing trade benefits for Andean 
     beneficiaries countries will promote the growth of free 
     enterprise and economic opportunity in these countries and 
     serve the security interests of the United States, the 
     region, and the world.

     SEC. 2103. TEMPORARY PROVISIONS.

       (a) In General.--Section 204(b) of the Andean Trade 
     Preference Act (19 U.S.C. 3203(b)) is amended to read as 
     follows:
       ``(b) Import-Sensitive Articles.--
       ``(1) In general.--Subject to paragraphs (2) through (5), 
     the duty-free treatment provided under this title does not 
     apply to--
       ``(A) textile and apparel articles which were not eligible 
     articles for purposes of this title on January 1, 1994, as 
     this title was in effect on that date;
       ``(B) footwear not designated at the time of the effective 
     date of this title as eligible articles for the purpose of 
     the generalized system of preferences under title V of the 
     Trade Act of 1974;
       ``(C) tuna, prepared or preserved in any manner, in 
     airtight containers;
       ``(D) petroleum, or any product derived from petroleum, 
     provided for in headings 2709 and 2710 of the HTS;
       ``(E) watches and watch parts (including cases, bracelets, 
     and straps), of whatever type including, but not limited to, 
     mechanical, quartz digital, or quartz analog, if such watches 
     or watch parts contain any material which is the product of 
     any country with respect to which HTS column 2 rates of duty 
     apply;
       ``(F) articles to which reduced rates of duty apply under 
     subsection (c);
       ``(G) sugars, syrups, and sugar containing products subject 
     to tariff-rate quotas; or
       ``(H) rum and tafia classified in subheading 2208.40 of the 
     HTS.
       ``(2) Transition period treatment of certain textile and 
     apparel articles.--
       ``(A) Articles covered.--During the transition period, the 
     preferential treatment described in subparagraph (B) shall 
     apply to the following articles:
       ``(i) Apparel articles assembled from products of the 
     united states and atpea beneficiary countries or products not 
     available in commercial quantities.--Apparel articles sewn or 
     otherwise assembled in 1 or more ATPEA beneficiary countries, 
     or the United States, or both, exclusively from any one or 
     any combination of the following:

       ``(I) Fabrics or fabric components formed, or components 
     knit-to-shape, in the United States, from yarns wholly formed 
     in the United States (including fabrics not formed from 
     yarns, if such fabrics are classifiable under heading 5602 or 
     5603 of the HTS and are formed in the United States), 
     provided that apparel articles sewn or otherwise assembled 
     from materials described in this subclause are assembled with 
     thread formed in the United States.
       ``(II) Fabric components knit-to-shape in the United States 
     from yarns wholly formed in the United States and fabric 
     components knit-to-shape in 1 or more ATPEA beneficiary 
     countries from yarns wholly formed in the United States.
       ``(III) Fabrics or fabric components formed or components 
     knit-to-shape, in 1 or more ATPEA beneficiary countries, from 
     yarns wholly formed in 1 or more ATPEA beneficiary countries, 
     if such fabrics (including fabrics not formed from yarns, if 
     such fabrics are classifiable under heading 5602 or 5603 of 
     the HTS and are formed in 1 or more ATPEA beneficiary 
     countries) or components are in chief weight of llama, 
     alpaca, or vicuna.

       ``(IV) Fabrics or yarns that are not formed in the United 
     States or in 1 or more ATPEA beneficiary countries, to the 
     extent that apparel articles of such fabrics or yarns would 
     be eligible for preferential treatment, without regard to the 
     source of the fabrics or yarns, under Annex 401 of the NAFTA.

       ``(ii) Knit-to-shape apparel articles.--Apparel articles 
     knit-to-shape (other than socks provided for in heading 6115 
     of the HTS) in 1 or more ATPEA beneficiary countries from 
     yarns wholly formed in the United States.
       ``(iii) Regional fabric.--

       ``(I) General rule.--Knit apparel articles wholly assembled 
     in 1 or more ATPEA beneficiary countries exclusively from 
     fabric formed, or fabric components formed, or components 
     knit-to-shape, or any combination thereof, in 1 or more ATPEA 
     beneficiary countries from yarns wholly formed in the United 
     States, in an amount not exceeding the amount set forth in 
     subclause (II).
       ``(II) Limitation.--The amount referred to in subclause (I) 
     is 70,000,000 square meter equivalents during the 1-year 
     period beginning on March 1, 2002, increased by 16 percent, 
     compounded annually, in each succeeding 1-year period through 
     February 28, 2006.

       ``(iv) Certain other apparel articles.--

       ``(I) General rule.--Subject to subclause (II), any apparel 
     article classifiable under subheading 6212.10 of the HTS, if 
     the article is both cut and sewn or otherwise assembled in 
     the United States, or one or more of the ATPEA beneficiary 
     countries, or both.
       ``(II) Limitation.--During the 1-year period beginning on 
     March 1, 2003, and during each of the 2 succeeding 1-year 
     periods, apparel articles described in subclause (I) of a 
     producer or an entity controlling production shall be 
     eligible for preferential treatment under subparagraph (B) 
     only if the aggregate cost of fabric components formed in the 
     United States that are used in the production of all such 
     articles of that producer or entity that are entered during 
     the preceding 1-year period is at least 75 percent of the 
     aggregate declared customs value of the fabric contained in 
     all such articles of that producer or entity that are entered 
     during the preceding 1-year period.
       ``(III) Development of procedure to ensure compliance.--The 
     United States Customs Service shall develop and implement 
     methods and procedures to ensure ongoing compliance with the 
     requirement set forth in subclause (II). If the Customs 
     Service finds that a producer or an entity controlling 
     production has not satisfied such requirement in a 1-year 
     period, then apparel articles described in subclause (I) of 
     that producer or entity shall be ineligible for preferential 
     treatment under subparagraph (B) during any succeeding 1-year 
     period until the aggregate cost of fabric components formed 
     in the United States used in the production of such articles 
     of that producer or entity that are entered during the 
     preceding 1-year period is at least 85 percent of the 
     aggregate declared customs value of the fabric contained in 
     all such articles of that producer or entity that are entered 
     during the preceding 1-year period.

       ``(v) Apparel articles assembled from fabrics or yarn not 
     widely available in commercial quantities.--At the request of 
     any interested party, the President is authorized to proclaim 
     additional fabrics and yarn as eligible for preferential 
     treatment under clause (i)(IV) if--

       ``(I) the President determines that such fabrics or yarn 
     cannot be supplied by the domestic industry in commercial 
     quantities in a timely manner;
       ``(II) the President has obtained advice regarding the 
     proposed action from the appropriate advisory committee 
     established under section 135 of the Trade Act of 1974 (19 
     U.S.C. 2155) and the United States International Trade 
     Commission;
       ``(III) within 60 days after the request, the President has 
     submitted a report to the Committee on Ways and Means of the 
     House of Representatives and the Committee on Finance of the 
     Senate that sets forth the action proposed to be proclaimed 
     and the reasons for such actions, and the advice obtained 
     under subclause (II);
       ``(IV) a period of 60 calendar days, beginning with the 
     first day on which the President has met the requirements of 
     subclause (III), has expired; and

       ``(V) the President has consulted with such committees 
     regarding the proposed action during the period referred to 
     in subclause (III).

       ``(vi) Handloomed, handmade, and folklore articles.--A 
     handloomed, handmade, or folklore article of an ATPEA 
     beneficiary country identified under subparagraph (C) that is 
     certified as such by the competent authority of such 
     beneficiary country.
       ``(vii) Special rules.--

       ``(I) Exception for findings and trimmings.--(aa) An 
     article otherwise eligible for preferential treatment under 
     this paragraph shall not be ineligible for such treatment 
     because the article contains findings or trimmings of foreign 
     origin, if such findings and trimmings do not exceed 25 
     percent of the cost of the components of the assembled 
     product. Examples of findings and trimmings are sewing 
     thread, hooks and eyes, snaps, buttons, `bow buds', 
     decorative lace, trim, elastic strips, zippers, including 
     zipper tapes and labels, and other similar products. Elastic 
     strips are considered findings or trimmings only if they 
     are each less than 1 inch in width and are used in the 
     production of brassieres.

       ``(bb) In the case of an article described in clause (i)(I) 
     of this subparagraph, sewing thread shall not be treated as 
     findings or trimmings under this subclause.
       ``(II) Certain interlinings.--(aa) An article otherwise 
     eligible for preferential treatment under this paragraph 
     shall not be ineligible for such treatment because the 
     article contains certain interlinings of foreign origin, if 
     the value of such interlinings (and any findings and 
     trimmings) does not exceed 25 percent of the cost of the 
     components of the assembled article.
       ``(bb) Interlinings eligible for the treatment described in 
     division (aa) include only a chest type plate, `hymo' piece, 
     or `sleeve header', of woven or weft-inserted warp knit 
     construction and of coarse animal hair or man-made filaments.
       ``(cc) The treatment described in this subclause shall 
     terminate if the President makes a determination that United 
     States manufacturers are producing such interlinings in the 
     United States in commercial quantities.
       ``(III) De minimis rule.--An article that would otherwise 
     be ineligible for preferential treatment under this paragraph 
     because the article contains yarns not wholly formed in

[[Page S4176]]

     the United States or in 1 or more ATPEA beneficiary countries 
     shall not be ineligible for such treatment if the total 
     weight of all such yarns is not more than 7 percent of the 
     total weight of the good. Notwithstanding the preceding 
     sentence, an apparel article containing elastomeric yarns 
     shall be eligible for preferential treatment under this 
     paragraph only if such yarns are wholly formed in the United 
     States.
       ``(IV) Special origin rule.--An article otherwise eligible 
     for preferential treatment under clause (i) of this 
     subparagraph shall not be ineligible for such treatment 
     because the article contains nylon filament yarn (other than 
     elastomeric yarn) that is classifiable under subheading 
     5402.10.30, 5402.10.60, 5402.31.30, 5402.31.60, 5402.32.30, 
     5402.32.60, 5402.41.10, 5402.41.90, 5402.51.00, or 5402.61.00 
     of the HTS duty-free from a country that is a party to an 
     agreement with the United States establishing a free trade 
     area, which entered into force before January 1, 1995.
       ``(V) Clarification of certain knit apparel articles.--
     Notwithstanding any other provision of law, an article 
     otherwise eligible for preferential treatment under clause 
     (iii)(I) of this subparagraph, shall not be ineligible for 
     such treatment because the article, or a component thereof, 
     contains fabric formed in the United States from yarns wholly 
     formed in the United States.

       ``(viii) Textile luggage.--Textile luggage--

       ``(I) assembled in an ATPEA beneficiary country from fabric 
     wholly formed and cut in the United States, from yarns wholly 
     formed in the United States, that is entered under subheading 
     9802.00.80 of the HTS; or
       ``(II) assembled from fabric cut in an ATPEA beneficiary 
     country from fabric wholly formed in the United States from 
     yarns wholly formed in the United States.

       ``(B) Preferential treatment.--Except as provided in 
     subparagraph (E), during the transition period, the articles 
     to which subparagraph (A) applies shall enter the United 
     States free of duty and free of any quantitative 
     restrictions, limitations, or consultation levels.
       ``(C) Handloomed, handmade, and folklore articles.--For 
     purposes of subparagraph (A)(vi), the President shall consult 
     with representatives of the ATPEA beneficiary countries 
     concerned for the purpose of identifying particular textile 
     and apparel goods that are mutually agreed upon as being 
     handloomed, handmade, or folklore goods of a kind described 
     in section 2.3(a), (b), or (c) of the Annex or Appendix 
     3.1.B.11 of the Annex.
       ``(D) Penalties for transshipments.--
       ``(i) Penalties for exporters.--If the President 
     determines, based on sufficient evidence, that an exporter 
     has engaged in transshipment with respect to textile or 
     apparel articles from an ATPEA beneficiary country, then the 
     President shall deny all benefits under this title to such 
     exporter, and any successor of such exporter, for a period of 
     2 years.
       ``(ii) Penalties for countries.--Whenever the President 
     finds, based on sufficient evidence, that transshipment has 
     occurred, the President shall request that the ATPEA 
     beneficiary country or countries through whose territory the 
     transshipment has occurred take all necessary and appropriate 
     actions to prevent such transshipment. If the President 
     determines that a country is not taking such actions, the 
     President shall reduce the quantities of textile and apparel 
     articles that may be imported into the United States from 
     such country by the quantity of the transshipped articles 
     multiplied by 3, to the extent consistent with the 
     obligations of the United States under the WTO.
       ``(iii) Transshipment described.--Transshipment within the 
     meaning of this subparagraph has occurred when preferential 
     treatment under subparagraph (B) has been claimed for a 
     textile or apparel article on the basis of material false 
     information concerning the country of origin, manufacture, 
     processing, or assembly of the article or any of its 
     components. For purposes of this clause, false information is 
     material if disclosure of the true information would mean or 
     would have meant that the article is or was ineligible for 
     preferential treatment under subparagraph (B).
       ``(E) Bilateral emergency actions.--
       ``(i) In general.--The President may take bilateral 
     emergency tariff actions of a kind described in section 4 of 
     the Annex with respect to any apparel article imported 
     from an ATPEA beneficiary country if the application of 
     tariff treatment under subparagraph (B) to such article 
     results in conditions that would be cause for the taking 
     of such actions under such section 4 with respect to a 
     like article described in the same 8-digit subheading of 
     the HTS that is imported from Mexico.
       ``(ii) Rules relating to bilateral emergency action.--For 
     purposes of applying bilateral emergency action under this 
     subparagraph--

       ``(I) the requirements of paragraph (5) of section 4 of the 
     Annex (relating to providing compensation) shall not apply;
       ``(II) the term `transition period' in section 4 of the 
     Annex shall have the meaning given that term in paragraph 
     (5)(D) of this subsection; and
       ``(III) the requirements to consult specified in section 4 
     of the Annex shall be treated as satisfied if the President 
     requests consultations with the ATPEA beneficiary country in 
     question and the country does not agree to consult within the 
     time period specified under section 4.

       ``(3) Transition period treatment of certain other articles 
     originating in beneficiary countries.--
       ``(A) Equivalent tariff treatment.--
       ``(i) In general.--Subject to clause (ii), the tariff 
     treatment accorded at any time during the transition period 
     to any article referred to in any of subparagraphs (B), (D) 
     through (F), or (H) of paragraph (1) that is an ATPEA 
     originating good, imported directly into the customs 
     territory of the United States from an ATPEA beneficiary 
     country, shall be identical to the tariff treatment that is 
     accorded at such time under Annex 302.2 of the NAFTA to an 
     article described in the same 8-digit subheading of the HTS 
     that is a good of Mexico and is imported into the United 
     States.
       ``(ii) Exception.--Clause (i) does not apply to--

       ``(I) any article accorded duty-free treatment under U.S. 
     Note 2(b) to subchapter II of chapter 98 of the HTS; or
       ``(II) any article described in subheading 6401.10.00, 
     6401.91.00, 6401.92.90, 6401.99.30, 6401.99.60, 6401.99.90, 
     6402.30.50, 6402.30.70, 6402.30.80, 6402.91.50, 6402.91.80, 
     6402.91.90, 6402.99.20, 6402.99.30, 6402.99.80, 6402.99.90, 
     6403.91.60, 6404.11.50, 6404.11.60, 6404.11.70, 6404.11.80, 
     6404.11.90, 6404.19.20, 6404.19.35, 6404.19.50, or 6404.19.70 
     of the HTS.

       ``(B) Relationship to subsection (c) duty reductions.--If 
     at any time during the transition period the rate of duty 
     that would (but for action taken under subparagraph (A)(i) in 
     regard to such period) apply with respect to any article 
     under subsection (c) is a rate of duty that is lower than the 
     rate of duty resulting from such action, then such lower rate 
     of duty shall be applied for the purposes of implementing 
     such action.
       ``(C) Special rule for sugars, syrups, and sugar containing 
     products.--Duty-free treatment under this Act shall not be 
     extended to sugars, syrups, and sugar-containing products 
     subject to over-quota duty rates under applicable tariff-rate 
     quotas.
       ``(D) Special rule for certain tuna products.--
       ``(i) In general.--The President may proclaim duty-free 
     treatment under this Act for tuna that is harvested by United 
     States vessels or ATPEA beneficiary country vessels, and is 
     prepared or preserved in any manner, in airtight containers 
     in an ATPEA beneficiary country. Such duty-free treatment may 
     be proclaimed in any calendar year for a quantity of such 
     tuna that does not exceed 20 percent of the domestic United 
     States tuna pack in the preceding calendar year. As used in 
     the preceding sentence, the term `tuna pack' means tuna pack 
     as defined by the National Marine Fisheries Service of the 
     United States Department of Commerce for purposes of 
     subheading 1604.14.20 of the HTS as in effect on the date of 
     enactment of the Andean Trade Preference Expansion Act.
       ``(ii) United states vessel.--For purposes of this 
     subparagraph, a `United States vessel' is a vessel having a 
     certificate of documentation with a fishery endorsement under 
     chapter 121 of title 46, United States Code.
       ``(iii) ATPEA vessel.--For purposes of this subparagraph, 
     an `ATPEA vessel' is a vessel--

       ``(I) which is registered or recorded in an ATPEA 
     beneficiary country;
       ``(II) which sails under the flag of an ATPEA beneficiary 
     country;
       ``(III) which is at least 75 percent owned by nationals of 
     an ATPEA beneficiary country or by a company having its 
     principal place of business in an ATPEA beneficiary country, 
     of which the manager or managers, chairman of the board of 
     directors or of the supervisory board, and the majority of 
     the members of such boards are nationals of an ATPEA 
     beneficiary country and of which, in the case of a company, 
     at least 50 percent of the capital is owned by an ATPEA 
     beneficiary country or by public bodies or nationals of an 
     ATPEA beneficiary country;
       ``(IV) of which the master and officers are nationals of an 
     ATPEA beneficiary country; and
       ``(V) of which at least 75 percent of the crew are 
     nationals of an ATPEA beneficiary country.

       ``(4) Customs procedures.--
       ``(A) In general.--
       ``(i) Regulations.--Any importer that claims preferential 
     treatment under paragraph (2) or (3) shall comply with 
     customs procedures similar in all material respects to the 
     requirements of Article 502(1) of the NAFTA as implemented 
     pursuant to United States law, in accordance with regulations 
     promulgated by the Secretary of the Treasury.
       ``(ii) Determination.--

       ``(I) In general.--In order to qualify for the preferential 
     treatment under paragraph (2) or (3) and for a Certificate of 
     Origin to be valid with respect to any article for which such 
     treatment is claimed, there shall be in effect a 
     determination by the President that each country described in 
     subclause (II)--

       ``(aa) has implemented and follows; or
       ``(bb) is making substantial progress toward implementing 
     and following, procedures and requirements similar in all 
     material respects to the relevant procedures and 
     requirements under chapter 5 of the NAFTA.

       ``(II) Country described.--A country is described in this 
     subclause if it is an ATPEA beneficiary country--

       ``(aa) from which the article is exported; or
       ``(bb) in which materials used in the production of the 
     article originate or in which the article or such materials 
     undergo production that contributes to a claim that the

[[Page S4177]]

     article is eligible for preferential treatment under 
     paragraph (2) or (3).
       ``(B) Certificate of origin.--The Certificate of Origin 
     that otherwise would be required pursuant to the provisions 
     of subparagraph (A) shall not be required in the case of an 
     article imported under paragraph (2) or (3) if such 
     Certificate of Origin would not be required under Article 503 
     of the NAFTA (as implemented pursuant to United States law), 
     if the article were imported from Mexico.
       ``(C) Report by ustr on cooperation of other countries 
     concerning circumvention.--The United States Commissioner of 
     Customs shall conduct a study analyzing the extent to which 
     each ATPEA beneficiary country--
       ``(i) has cooperated fully with the United States, 
     consistent with its domestic laws and procedures, in 
     instances of circumvention or alleged circumvention of 
     existing quotas on imports of textile and apparel goods, to 
     establish necessary relevant facts in the places of import, 
     export, and, where applicable, transshipment, including 
     investigation of circumvention practices, exchanges of 
     documents, correspondence, reports, and other relevant 
     information, to the extent such information is available;
       ``(ii) has taken appropriate measures, consistent with its 
     domestic laws and procedures, against exporters and importers 
     involved in instances of false declaration concerning fiber 
     content, quantities, description, classification, or origin 
     of textile and apparel goods; and
       ``(iii) has penalized the individuals and entities involved 
     in any such circumvention, consistent with its domestic laws 
     and procedures, and has worked closely to seek the 
     cooperation of any third country to prevent such 
     circumvention from taking place in that third country.

     The Trade Representative shall submit to Congress, not later 
     than October 1, 2002, a report on the study conducted under 
     this subparagraph.
       ``(5) Definitions and special rules.--For purposes of this 
     subsection--
       ``(A) Annex.--The term `the Annex' means Annex 300-B of the 
     NAFTA.
       ``(B) ATPEA beneficiary country.--The term `ATPEA 
     beneficiary country' means any `beneficiary country', as 
     defined in section 203(a)(1) of this title, which the 
     President designates as an ATPEA beneficiary country, taking 
     into account the criteria contained in subsections (c) and 
     (d) of section 203 and other appropriate criteria, including 
     the following:
       ``(i) Whether the beneficiary country has demonstrated a 
     commitment to--

       ``(I) undertake its obligations under the WTO, including 
     those agreements listed in section 101(d) of the Uruguay 
     Round Agreements Act, on or ahead of schedule; and
       ``(II) participate in negotiations toward the completion of 
     the FTAA or another free trade agreement.

       ``(ii) The extent to which the country provides protection 
     of intellectual property rights consistent with or greater 
     than the protection afforded under the Agreement on Trade-
     Related Aspects of Intellectual Property Rights described in 
     section 101(d)(15) of the Uruguay Round Agreements Act.
       ``(iii) The extent to which the country provides 
     internationally recognized worker rights, including--

       ``(I) the right of association;
       ``(II) the right to organize and bargain collectively;
       ``(III) a prohibition on the use of any form of forced or 
     compulsory labor;
       ``(IV) a minimum age for the employment of children; and
       ``(V) acceptable conditions of work with respect to minimum 
     wages, hours of work, and occupational safety and health;

       ``(iv) Whether the country has implemented its commitments 
     to eliminate the worst forms of child labor, as defined in 
     section 507(6) of the Trade Act of 1974.
       ``(v) The extent to which the country has met the counter-
     narcotics certification criteria set forth in section 490 of 
     the Foreign Assistance Act of 1961 (22 U.S.C. 2291j) for 
     eligibility for United States assistance.
       ``(vi) The extent to which the country has taken steps to 
     become a party to and implements the Inter-American 
     Convention Against Corruption.
       ``(vii) The extent to which the country--

       ``(I) applies transparent, nondiscriminatory, and 
     competitive procedures in government procurement equivalent 
     to those contained in the Agreement on Government Procurement 
     described in section 101(d)(17) of the Uruguay Round 
     Agreements Act; and
       ``(II) contributes to efforts in international fora to 
     develop and implement international rules in transparency in 
     government procurement.

       ``(C) ATPEA originating good.--
       ``(i) In general.--The term `ATPEA originating good' means 
     a good that meets the rules of origin for a good set forth in 
     chapter 4 of the NAFTA as implemented pursuant to United 
     States law.
       ``(ii) Application of chapter 4.--In applying chapter 4 of 
     the NAFTA with respect to an ATPEA beneficiary country for 
     purposes of this subsection--

       ``(I) no country other than the United States and an ATPEA 
     beneficiary country may be treated as being a party to the 
     NAFTA;
       ``(II) any reference to trade between the United States and 
     Mexico shall be deemed to refer to trade between the United 
     States and an ATPEA beneficiary country;
       ``(III) any reference to a party shall be deemed to refer 
     to an ATPEA beneficiary country or the United States; and
       ``(IV) any reference to parties shall be deemed to refer to 
     any combination of ATPEA beneficiary countries or to the 
     United States and one or more ATPEA beneficiary countries (or 
     any combination thereof ).

       ``(D) Transition period.--The term `transition period' 
     means, with respect to an ATPEA beneficiary country, the 
     period that begins on the date of enactment, and ends on the 
     earlier of--
       ``(i) February 28, 2006; or
       ``(ii) the date on which the FTAA or another free trade 
     agreement that makes substantial progress in achieving the 
     negotiating objectives set forth in section 108(b)(5) of 
     Public Law 103-182 (19 U.S.C. 3317(b)(5)) enters into force 
     with respect to the United States and the ATPEA beneficiary 
     country.
       ``(E) ATPEA.--The term `ATPEA' means the Andean Trade 
     Preference Expansion Act.
       ``(F) FTAA.--The term `FTAA' means the Free Trade Area of 
     the Americas.''.
       (b) Determination Regarding Retention of Designation.--
     Section 203(e) of the Andean Trade Preference Act (19 U.S.C. 
     3202(e)) is amended--
       (1) in paragraph (1)--
       (A) by redesignating subparagraphs (A) and (B) as clauses 
     (i) and (ii), respectively;
       (B) by inserting ``(A)'' after ``(1)''; and
       (C) by adding at the end the following:
       ``(B) The President may, after the requirements of 
     paragraph (2) have been met--
       ``(i) withdraw or suspend the designation of any country as 
     an ATPEA beneficiary country; or
       ``(ii) withdraw, suspend, or limit the application of 
     preferential treatment under section 204(b) (2) and (3) to 
     any article of any country,

     if, after such designation, the President determines that, as 
     a result of changed circumstances, the performance of such 
     country is not satisfactory under the criteria set forth in 
     section 204(b)(5)(B).''; and
       (2) by adding after paragraph (2) the following new 
     paragraph:
       ``(3) If preferential treatment under section 204(b) (2) 
     and (3) is withdrawn, suspended, or limited with respect to 
     an ATPEA beneficiary country, such country shall not be 
     deemed to be a `party' for the purposes of applying section 
     204(b)(5)(C) to imports of articles for which preferential 
     treatment has been withdrawn, suspended, or limited with 
     respect to such country.''.
       (c) Reporting Requirements.--Section 203(f ) of the Andean 
     Trade Preference Act (19 U.S.C. 3202(f )) is amended to read 
     as follows:
       ``(f ) Reporting Requirements.--
       ``(1) In general.--Not later than December 31, 2002, and 
     every 2 years thereafter during the period this title is in 
     effect, the United States Trade Representative shall submit 
     to Congress a report regarding the operation of this title, 
     including--
       ``(A) with respect to subsections (c) and (d), the results 
     of a general review of beneficiary countries based on the 
     considerations described in such subsections; and
       ``(B) the performance of each beneficiary country or ATPEA 
     beneficiary country, as the case may be, under the criteria 
     set forth in section 204(b)(5)(B).
       ``(2) Public comment.--Before submitting the report 
     described in paragraph (1), the United States Trade 
     Representative shall publish a notice in the Federal Register 
     requesting public comments on whether beneficiary countries 
     are meeting the criteria listed in section 204(b)(5)(B).''.
       (d) Conforming Amendments.--
       (1) In general.--
       (A) Section 202 of the Andean Trade Preference Act (19 
     U.S.C. 3201) is amended by inserting ``(or other preferential 
     treatment)'' after ``treatment''.
       (B) Section 204(a)(1) of the Andean Trade Preference Act 
     (19 U.S.C. 3203(a)(1)) is amended by inserting ``(or 
     otherwise provided for)'' after ``eligibility''.
       (C) Section 204(a)(1) of the Andean Trade Preference Act 
     (19 U.S.C. 3203(a)(1)) is amended by inserting ``(or 
     preferential treatment)'' after ``duty-free treatment''.
       (2) Definitions.--Section 203(a) of the Andean Trade 
     Preference Act (19 U.S.C. 3202(a)) is amended by adding at 
     the end the following new paragraphs:
       ``(4) The term ``NAFTA'' means the North American Free 
     Trade Agreement entered into between the United States, 
     Mexico, and Canada on December 17, 1992.
       ``(5) The terms `WTO' and `WTO member' have the meanings 
     given those terms in section 2 of the Uruguay Round 
     Agreements Act (19 U.S.C. 3501).''.

     SEC. 2104. TERMINATION.

       (a) In General.--Section 208(b) of the Andean Trade 
     Preference Act (19 U.S.C. 3206(b)) is amended to read as 
     follows:
       ``(b) Termination of Preferential Treatment.--No 
     preferential duty treatment extended to beneficiary countries 
     under this Act shall remain in effect after February 28, 
     2006.''.
       (b) Retroactive Application for Certain Liquidations and 
     Reliquidations.--
       (1) In general.--Notwithstanding section 514 of the Tariff 
     Act of 1930 or any other provision of law, and subject to 
     paragraph (3), the entry--
       (A) of any article to which duty-free treatment (or 
     preferential treatment) under the Andean Trade Preference Act 
     (19 U.S.C. 3201

[[Page S4178]]

     et seq.) would have applied if the entry had been made on 
     December 4, 2001,
       (B) that was made after December 4, 2001, and before the 
     date of the enactment of this Act, and
       (C) to which duty-free treatment (or preferential 
     treatment) under the Andean Trade Preference Act did not 
     apply,

     shall be liquidated or reliquidated as if such duty-free 
     treatment (or preferential treatment) applied, and the 
     Secretary of the Treasury shall refund any duty paid with 
     respect to such entry.
       (2) Entry.--As used in this subsection, the term ``entry'' 
     includes a withdrawal from warehouse for consumption.
       (3) Requests.--Liquidation or reliquidation may be made 
     under paragraph (1) with respect to an entry only if a 
     request therefor is filed with the Customs Service, within 
     180 days after the date of the enactment of this Act, that 
     contains sufficient information to enable the Customs 
     Service--
       (A) to locate the entry; or
       (B) to reconstruct the entry if it cannot be located.
       (4) Payment.--No more than 75 percent of the amount due as 
     a result of a liquidation or reliquidation filed under this 
     subsection shall be paid in fiscal year 2002.

               TITLE XXII--MISCELLANEOUS TRADE PROVISIONS

     SEC. 2201. WOOL PROVISIONS.

       (a) Short Title.--This section may be cited as the ``Wool 
     Manufacturer Payment Clarification and Technical Corrections 
     Act''.
       (b) Clarification of Temporary Duty Suspension.--Heading 
     9902.51.13 of the Harmonized Tariff Schedule of the United 
     States is amended by inserting ``average'' before 
     ``diameters''.
       (c) Payments to Manufacturers of Certain Wool Products.--
       (1) Payments.--Section 505 of the Trade and Development Act 
     of 2000 (Public Law 106-200; 114 Stat. 303) is amended as 
     follows:
       (A) Subsection (a) is amended--
       (i) by striking ``In each of the calendar years'' and 
     inserting ``For each of the calendar years''; and
       (ii) by striking ``for a refund of duties'' and all that 
     follows through the end of the subsection and inserting ``for 
     a payment equal to an amount determined pursuant to 
     subsection (d)(1).''.
       (B) Subsection (b) is amended to read as follows:
       ``(b) Wool Yarn.--
       ``(1) Importing manufacturers.--For each of the calendar 
     years 2000, 2001, and 2002, a manufacturer of worsted wool 
     fabrics who imports wool yarn of the kind described in 
     heading 9902.51.13 of the Harmonized Tariff Schedule of the 
     United States shall be eligible for a payment equal to an 
     amount determined pursuant to subsection (d)(2).
       ``(2) Nonimporting manufacturers.--For each of the calendar 
     years 2001 and 2002, any other manufacturer of worsted wool 
     fabrics of imported wool yarn of the kind described in 
     heading 9902.51.13 of the Harmonized Tariff Schedule of the 
     United States shall be eligible for a payment equal to an 
     amount determined pursuant to subsection (d)(2).''.
       (C) Subsection (c) is amended to read as follows:
       ``(c) Wool Fiber and Wool Top.--
       ``(1) Importing manufacturers.--For each of the calendar 
     years 2000, 2001, and 2002, a manufacturer of wool yarn or 
     wool fabric who imports wool fiber or wool top of the kind 
     described in heading 9902.51.14 of the Harmonized Tariff 
     Schedule of the United States shall be eligible for a payment 
     equal to an amount determined pursuant to subsection (d)(3).
       ``(2) Nonimporting manufacturers.--For each of the calendar 
     years 2001 and 2002, any other manufacturer of wool yarn or 
     wool fabric of imported wool fiber or wool top of the kind 
     described in heading 9902.51.14 of the Harmonized Tariff 
     Schedule of the United States shall be eligible for a payment 
     equal to an amount determined pursuant to subsection 
     (d)(3).''.
       (D) Section 505 is further amended by striking subsection 
     (d) and inserting the following new subsections:
       ``(d) Amount of Annual Payments to Manufacturers.--
       ``(1) Manufacturers of men's suits, etc. of imported 
     worsted wool fabrics.--
       ``(A) Eligible to receive more than $5,000.--Each annual 
     payment to manufacturers described in subsection (a) who, 
     according to the records of the Customs Service as of 
     September 11, 2001, are eligible to receive more than $5,000 
     for each of the calendar years 2000, 2001, and 2002, shall be 
     in an amount equal to one-third of the amount determined by 
     multiplying $30,124,000 by a fraction--
       ``(i) the numerator of which is the amount attributable to 
     the duties paid on eligible wool products imported in 
     calendar year 1999 by the manufacturer making the claim, and
       ``(ii) the denominator of which is the total amount 
     attributable to the duties paid on eligible wool products 
     imported in calendar year 1999 by all the manufacturers 
     described in subsection (a) who, according to the records of 
     the Customs Service as of September 11, 2001, are eligible to 
     receive more than $5,000 for each such calendar year under 
     this section as it was in effect on that date.
       ``(B) Eligible wool products.--For purposes of subparagraph 
     (A), the term `eligible wool products' refers to imported 
     worsted wool fabrics described in subsection (a).
       ``(C) Others.--All manufacturers described in subsection 
     (a), other than the manufacturer's to which subparagraph (A) 
     applies, shall each receive an annual payment in an amount 
     equal to one-third of the amount determined by dividing 
     $1,665,000 by the number of all such other manufacturers.
       ``(2) Manufacturers of worsted wool fabrics of imported 
     wool yarn.--
       ``(A) Importing manufacturers.--Each annual payment to an 
     importing manufacturer described in subsection (b)(1) shall 
     be in an amount equal to one-third of the amount 
     determined by multiplying $2,202,000 by a fraction--
       ``(i) the numerator of which is the amount attributable to 
     the duties paid on eligible wool products imported in 
     calendar year 1999 by the importing manufacturer making the 
     claim, and
       ``(ii) the denominator of which is the total amount 
     attributable to the duties paid on eligible wool products 
     imported in calendar year 1999 by all the importing 
     manufacturers described in subsection (b)(1).
       ``(B) Eligible wool products.--For purposes of subparagraph 
     (A), the term `eligible wool products' refers to imported 
     wool yarn described in subsection (b)(1).
       ``(C) Nonimporting manufacturers.--Each annual payment to a 
     nonimporting manufacturer described in subsection (b)(2) 
     shall be in an amount equal to one-half of the amount 
     determined by multiplying $141,000 by a fraction--
       ``(i) the numerator of which is the amount attributable to 
     the purchases of imported eligible wool products in calendar 
     year 1999 by the nonimporting manufacturer making the claim, 
     and
       ``(ii) the denominator of which is the total amount 
     attributable to the purchases of imported eligible wool 
     products in calendar year 1999 by all the nonimporting 
     manufacturers described in subsection (b)(2).
       ``(3) Manufacturers of wool yarn or wool fabric of imported 
     wool fiber or wool top.--
       ``(A) Importing manufacturers.--Each annual payment to an 
     importing manufacturer described in subsection (c)(1) shall 
     be in an amount equal to one-third of the amount determined 
     by multiplying $1,522,000 by a fraction--
       ``(i) the numerator of which is the amount attributable to 
     the duties paid on eligible wool products imported in 
     calendar year 1999 by the importing manufacturer making the 
     claim, and
       ``(ii) the denominator of which is the total amount 
     attributable to the duties paid on eligible wool products 
     imported in calendar year 1999 by all the importing 
     manufacturers described in subsection (c)(1).
       ``(B) Eligible wool products.--For purposes of subparagraph 
     (A), the term `eligible wool products' refers to imported 
     wool fiber or wool top described in subsection (c)(1).
       ``(C) Nonimporting manufacturers.--Each annual payment to a 
     nonimporting manufacturer described in subsection (c)(2) 
     shall be in an amount equal to one-half of the amount 
     determined by multiplying $597,000 by a fraction--
       ``(i) the numerator of which is the amount attributable to 
     the purchases of imported eligible wool products in calendar 
     year 1999 by the nonimporting manufacturer making the claim, 
     and
       ``(ii) the denominator of which is the amount attributable 
     to the purchases of imported eligible wool products in 
     calendar year 1999 by all the nonimporting manufacturers 
     described in subsection (c)(2).
       ``(4) Letters of intent.--Except for the nonimporting 
     manufacturers described in subsections (b)(2) and (c)(2) who 
     may make claims under this section by virtue of the enactment 
     of the Wool Manufacturer Payment Clarification and Technical 
     Corrections Act, only manufacturers who, according to the 
     records of the Customs Service, filed with the Customs 
     Service before September 11, 2001, letters of intent to 
     establish eligibility to be claimants are eligible to make a 
     claim for a payment under this section.
       ``(5) Amount attributable to purchases by nonimporting 
     manufacturers.--
       ``(A) Amount attributable.--For purposes of paragraphs 
     (2)(C) and (3)(C), the amount attributable to the purchases 
     of imported eligible wool products in calendar year 1999 by a 
     nonimporting manufacturer shall be the amount the 
     nonimporting manufacturer paid for eligible wool products in 
     calendar year 1999, as evidenced by invoices. The 
     nonimporting manufacturer shall make such calculation and 
     submit the resulting amount to the Customs Service, within 45 
     days after the date of enactment of the Wool Manufacturer 
     Payment Clarification and Technical Corrections Act, in a 
     signed affidavit that attests that the information contained 
     therein is true and accurate to the best of the affiant's 
     belief and knowledge. The nonimporting manufacturer shall 
     retain the records upon which the calculation is based for a 
     period of five years beginning on the date the affidavit is 
     submitted to the Customs Service.
       ``(B) Eligible wool product.--For purposes of subparagraph 
     (A)--
       ``(i) the eligible wool product for nonimporting 
     manufacturers of worsted wool fabrics is wool yarn of the 
     kind described in heading 9902.51.13 of the Harmonized Tariff 
     Schedule of the United States purchased in calendar year 
     1999; and
       ``(ii) the eligible wool products for nonimporting 
     manufacturers of wool yarn or wool fabric are wool fiber or 
     wool top of the kind described in heading 9902.51.14 of such 
     Schedule purchased in calendar year 1999.

[[Page S4179]]

       ``(6) Amount attributable to duties paid.--For purposes of 
     paragraphs (1), (2)(A), and (3)(A), the amount attributable 
     to the duties paid by a manufacturer shall be the amount 
     shown on the records of the Customs Service as of September 
     11, 2001, under this section as then in effect.
       ``(7) Schedule of payments; reallocations.--
       ``(A) Schedule.--Of the payments described in paragraphs 
     (1), (2)(A), and (3)(A), the Customs Service shall make the 
     first installment on or before December 31, 2001, the second 
     installment on or before April 15, 2002, and the third 
     installment on or before April 15, 2003. Of the payments 
     described in paragraphs (2)(C) and (3)(C), the Customs 
     Service shall make the first installment on or before April 
     15, 2002, and the second installment on or before April 15, 
     2003.
       ``(B) Reallocations.--In the event that a manufacturer that 
     would have received payment under subparagraph (A) or (C) of 
     paragraph (1), (2), or (3) ceases to be qualified for such 
     payment as such a manufacturer, the amounts otherwise payable 
     to the remaining manufacturers under such subparagraph shall 
     be increased on a pro rata basis by the amount of the payment 
     such manufacturer would have received.
       ``(8) Reference.--For purposes of paragraphs (1)(A) and 
     (6), the `records of the Customs Service as of September 11, 
     2001' are the records of the Wool Duty Unit of the Customs 
     Service on September 11, 2001, as adjusted by the Customs 
     Service to the extent necessary to carry out this section. 
     The amounts so adjusted are not subject to administrative or 
     judicial review.
       ``(e) Affidavits by Manufacturers.--
       ``(1) Affidavit required.--A manufacturer may not receive a 
     payment under this section for calendar year 2000, 2001, or 
     2002, as the case may be, unless that manufacturer has 
     submitted to the Customs Service for that calendar year a 
     signed affidavit that attests that, during that calendar 
     year, the affiant was a manufacturer in the United States 
     described in subsection (a), (b), or (c).
       ``(2) Timing.--An affidavit under paragraph (1) shall be 
     valid--
       ``(A) in the case of a manufacturer described in paragraph 
     (1), (2)(A), or (3)(A) of subsection (d) filing a claim for a 
     payment for calendar year 2000, only if the affidavit is 
     postmarked no later than 15 days after the date of enactment 
     of the Wool Manufacturer Payment Clarification and Technical 
     Corrections Act; and
       ``(B) in the case of a claim for a payment for calendar 
     year 2001 or 2002, only if the affidavit is postmarked no 
     later than March 1, 2002, or March 1, 2003, respectively.
       ``(f) Offsets.--Notwithstanding any other provision of this 
     section, any amount otherwise payable under subsection (d) to 
     a manufacturer in calendar year 2001 and, where applicable, 
     in calendar years 2002 and 2003, shall be reduced by the 
     amount of any payment received by that manufacturer under 
     this section before the enactment of the Wool Manufacturer 
     Payment Clarification and Technical Corrections Act.
       ``(g) Definition.--For purposes of this section, the 
     manufacturer is the party that owns--
       ``(1) imported worsted wool fabric, of the kind described 
     in heading 9902.51.11 or 9902.51.12 of the Harmonized Tariff 
     Schedule of the United States, at the time the fabric is cut 
     and sewn in the United States into men's or boys' suits, 
     suit-type jackets, or trousers;
       ``(2) imported wool yarn, of the kind described in heading 
     9902.51.13 of such Schedule, at the time the yarn is 
     processed in the United States into worsted wool fabric; or
       ``(3) imported wool fiber or wool top, of the kind 
     described in heading 9902.51.14 of such Schedule, at the time 
     the wool fiber or wool top is processed in the United States 
     into wool yarn.''.
       (2) Funding.--There is authorized to be appropriated such 
     sums as are necessary to carry out the amendments made by 
     paragraph (1).

     SEC. 2202. CEILING FANS.

       (a) In General.--Notwithstanding any other provision of 
     law, ceiling fans classified under subheading 8414.51.00 of 
     the Harmonized Tariff Schedule of the United States imported 
     from Thailand shall enter duty-free and without any 
     quantitative limitations, if duty-free treatment under title 
     V of the Trade Act of 1974 (19 U.S.C. 2461 et seq.) would 
     have applied to such entry had the competitive need 
     limitation been waived under section 503(d) of such Act.
       (b) Applicability.--The provisions of this section shall 
     apply to ceiling fans described in subsection (a) that are 
     entered, or withdrawn from warehouse for consumption--
       (1) on or after the date that is 15 days after the date of 
     enactment of this Act; and
       (2) before July 30, 2002.

     SEC. 2203. CERTAIN STEAM OR OTHER VAPOR GENERATING BOILERS 
                   USED IN NUCLEAR FACILITIES.

       (a) In General.--Subheading 9902.84.02 of the Harmonized 
     Tariff Schedule of the United States is amended--
       (1) by striking ``4.9%'' and inserting ``Free''; and
       (2) by striking ``12/31/2003'' and inserting ``12/31/
     2006''.
       (b) Effective Date.--The amendments made by subsection (a) 
     shall apply to goods entered, or withdrawn from warehouse for 
     consumption, on or after January 1, 2002.

     SEC. 2204. REVENUE PROVISIONS.

       (a) Deposits Made To Suspend Running of Interest on 
     Potential Underpayments.--
       (1) In general.--Subchapter A of chapter 67 of the Internal 
     Revenue Code of 1986 (relating to interest on underpayments) 
     is amended by adding at the end the following new section:

     ``SEC. 6603. DEPOSITS MADE TO SUSPEND RUNNING OF INTEREST ON 
                   POTENTIAL UNDERPAYMENTS, ETC.

       ``(a) Authority To Make Deposits Other Than As Payment of 
     Tax.--A taxpayer may make a cash deposit with the Secretary 
     which may be used by the Secretary to pay any tax imposed 
     under subtitle A or B or chapter 41, 42, 43, or 44 which has 
     not been assessed at the time of the deposit. Such a deposit 
     shall be made in such manner as the Secretary shall 
     prescribe.
       ``(b) No Interest Imposed.--To the extent that such deposit 
     is used by the Secretary to pay tax, for purposes of section 
     6601 (relating to interest on underpayments), the tax shall 
     be treated as paid when the deposit is made.
       ``(c) Return of Deposit.--Except in a case where the 
     Secretary determines that collection of tax is in jeopardy, 
     the Secretary shall return to the taxpayer any amount of the 
     deposit (to the extent not used for a payment of tax) which 
     the taxpayer requests in writing.
       ``(d) Payment of Interest.--
       ``(1) In general.--For purposes of section 6611 (relating 
     to interest on overpayments), a deposit which is returned to 
     a taxpayer shall be treated as a payment of tax for any 
     period to the extent (and only to the extent) attributable to 
     a disputable tax for such period. Under regulations 
     prescribed by the Secretary, rules similar to the rules of 
     section 6611(b)(2) shall apply.
       ``(2) Disputable tax.--
       ``(A) In general.--For purposes of this section, the term 
     `disputable tax' means the amount of tax specified at the 
     time of the deposit as the taxpayer's reasonable estimate of 
     the maximum amount of any tax attributable to disputable 
     items.
       ``(B) Safe harbor based on 30-day letter.--In the case of a 
     taxpayer who has been issued a 30-day letter, the maximum 
     amount of tax under subparagraph (A) shall not be less than 
     the amount of the proposed deficiency specified in such 
     letter.
       ``(3) Other definitions.--For purposes of paragraph (2)--
       ``(A) Disputable item.--The term `disputable item' means 
     any item of income, gain, loss, deduction, or credit if the 
     taxpayer--
       ``(i) has a reasonable basis for its treatment of such 
     item, and
       ``(ii) reasonably believes that the Secretary also has a 
     reasonable basis for disallowing the taxpayer's treatment of 
     such item.
       ``(B) 30-day letter.--The term `30-day letter' means the 
     first letter of proposed deficiency which allows the taxpayer 
     an opportunity for administrative review in the Internal 
     Revenue Service Office of Appeals.
       ``(4) Rate of interest.--The rate of interest allowable 
     under this subsection shall be the Federal short-term rate 
     determined under section 6621(b), compounded daily.
       ``(e) Use of Deposits.--
       ``(1) Payment of tax.--Except as otherwise provided by the 
     taxpayer, deposits shall be treated as used for the payment 
     of tax in the order deposited.
       ``(B) Returns of deposits.--Deposits shall be treated as 
     returned to the taxpayer on a last-in, first-out basis.''.
       (2) Clerical amendment.--The table of sections for 
     subchapter A of chapter 67 of such Code is amended by adding 
     at the end the following new item:

``Sec. 6603. Deposits made to suspend running of interest on potential 
              underpayments, etc.''.
       (3) Effective date.--
       (A) In general.--The amendments made by this subsection 
     shall apply to deposits made after the date of the enactment 
     of this Act.
       (B) Coordination with deposits made under revenue procedure 
     84-58.--In the case of an amount held by the Secretary of the 
     Treasury or his delegate on the date of the enactment of this 
     Act as a deposit in the nature of a cash bond deposit 
     pursuant to Revenue Procedure 84-58, the date that the 
     taxpayer identifies such amount as a deposit made pursuant to 
     section 6603 of the Internal Revenue Code (as added by this 
     Act) shall be treated as the date such amount is deposited 
     for purposes of such section 6603.
       (b) Partial Payment of Tax Liability in Installment 
     Agreements.--
       (1) In general.--
       (A) Section 6159(a) of the Internal Revenue Code of 1986 
     (relating to authorization of agreements) is amended--
       (i) by striking ``satisfy liability for payment of'' and 
     inserting ``make payment on'', and
       (ii) by inserting ``full or partial'' after ``facilitate''.
       (B) Section 6159(c) of such Code (relating to Secretary 
     required to enter into installment agreements in certain 
     cases) is amended in the matter preceding paragraph (1) by 
     inserting ``full'' before ``payment''.
       (2) Requirement to review partial payment agreements every 
     two years.--Section 6159 of such Code is amended by 
     redesignating subsections (d) and (e) as subsections (e) and 
     (f), respectively, and inserting after subsection (c) the 
     following new subsection:
       ``(d) Secretary Required To Review Installment Agreements 
     for Partial Collection Every Two Years.--In the case of

[[Page S4180]]

     an agreement entered into by the Secretary under subsection 
     (a) for partial collection of a tax liability, the Secretary 
     shall review the agreement at least once every 2 years.''.
       (3) Effective date.--The amendments made by this subsection 
     shall apply to agreements entered into on or after the date 
     of the enactment of this Act.
       (c) Extension of Internal Revenue Service User Fees.--
       (1) In general.--Chapter 77 of the Internal Revenue Code of 
     1986 (relating to miscellaneous provisions) is amended by 
     adding at the end the following new section:

     ``SEC. 7527. INTERNAL REVENUE SERVICE USER FEES.

       ``(a) General Rule.--The Secretary shall establish a 
     program requiring the payment of user fees for--
       ``(1) requests to the Internal Revenue Service for ruling 
     letters, opinion letters, and determination letters, and
       ``(2) other similar requests.
       ``(b) Program Criteria.--
       ``(1) In general.--The fees charged under the program 
     required by subsection (a)--
       ``(A) shall vary according to categories (or subcategories) 
     established by the Secretary,
       ``(B) shall be determined after taking into account the 
     average time for (and difficulty of) complying with requests 
     in each category (and subcategory), and
       ``(C) shall be payable in advance.
       ``(2) Exemptions, etc.--
       ``(A) In general.--The Secretary shall provide for such 
     exemptions (and reduced fees) under such program as the 
     Secretary determines to be appropriate.
       ``(B) Exemption for certain requests regarding pension 
     plans.--No fee shall be imposed under this section for any 
     request to which section 620(a) of the Economic Growth and 
     Tax Relief Reconciliation Act of 2001 applies.
       ``(3) Average fee requirement.--The average fee charged 
     under the program required by subsection (a) shall not be 
     less than the amount determined under the following table:

                                                                Average
``Category                                                          Fee
  Employee plan ruling and opinion............................$250 ....

  Exempt organization ruling..................................$350 ....

  Employee plan determination.................................$300 ....

  Exempt organization determination...........................$275 ....

  Chief counsel ruling........................................$200.....

       ``(c) Termination.--No fee shall be imposed under this 
     section with respect to requests made after September 30, 
     2005.''
       (2) Conforming amendments.--
       (A) The table of sections for chapter 77 of such Code is 
     amended by adding at the end the following new item:

``Sec. 7527. Internal Revenue Service user fees.''

       (B) Section 10511 of the Revenue Act of 1987 is repealed.
       (3) Effective date.--The amendments made by this subsection 
     shall apply to requests made after the date of the enactment 
     of this Act.
                                  ____

  SA 3400. Mr. BAYH (for himself, Mr. Durbin, Mr. Dayton, Ms. Mikulski, 
and Mr. Rockefeller) submitted an amendment intended to be proposed to 
amendment SA 3386 proposed by Mr. Daschle to the bill (H.R. 3009) to 
extend the Andean Trade Preference Act, to grant additional trade 
benefits under that Act, and for other purposes; which was ordered to 
lie on the table; as follows:

       Beginning on page A-35, line 1, strike all through page A-
     36, line 3, and insert the following:

     ``SEC. 225. NOTIFICATION BY INTERNATIONAL TRADE COMMISSION.

       ``(a) Notification of Investigation.--Whenever the 
     International Trade Commission begins an investigation under 
     section 202 with respect to an industry, the Commission shall 
     immediately notify the Secretary of that investigation.
       ``(b) Notification of Affirmative Finding.--Whenever the 
     International Trade Commission makes a report under section 
     202(f) containing an affirmative finding regarding serious 
     injury, or the threat thereof, to a domestic industry, the 
     Commission shall immediately notify the Secretary of that 
     finding.
       On page A-45, between lines 16 and 17, insert the 
     following:
       ``(2) Industry-wide certification.--If the Secretary 
     receives a petition under subsection (b)(2)(E) on behalf of 
     all workers in a domestic industry producing an article or 
     receives 3 or more petitions under subsection (b)(2) within a 
     180-day period on behalf of groups of workers producing the 
     same article, the Secretary shall make a determination under 
     subsections (a)(1) and (c)(1) of this section with respect to 
     the domestic industry as a whole in which the workers are or 
     were employed.
       On page A-45, line 15, strike ``(2)'' and insert ``(3)''.
       On page A-45, line 20, strike ``(3)'' and insert ``(4)''.
       On page A-46, line 1, strike ``(4)'' and insert ``(5)''.
       On page A-95, between lines 5 and 6, insert the following:

     SEC. 113. COORDINATION WITH OTHER TRADE PROVISIONS.

       (a) Recommendations by ITC.--
       (1) Section 202(e)(2)(D) of the Trade Act of 1974 (19 
     U.S.C. 2252(e)(2)(D)) is amended by striking ``, including 
     the provision of trade adjustment assistance under chapter 
     2''.
       (2) Section 203(a)(3)(D) of the Trade Act of 1974 (19 
     U.S.C. 2252(a)(3)(D)) is amended by striking ``, including 
     the provision of trade adjustment assistance under chapter 
     2''.
       (b) Assistance for Workers.--Section 203(a)(1)(A) of the 
     Trade Act of 1974 (19 U.S.C. 2252(a)(1)(A)) is amended to 
     read as follows:
       ``(A) After receiving a report under section 202(f) 
     containing an affirmative finding regarding serious injury, 
     or the threat thereof, to a domestic industry--
       ``(i) the President shall take all appropriate and feasible 
     action within his power; and
       ``(ii) the Secretary of Labor, the Secretary of 
     Agriculture, or the Secretary of Commerce, as appropriate, 
     shall certify as eligible for trade adjustment assistance 
     under section 231(a), 292, or 299B, workers, farmers, or 
     fishermen who are or were employed in the domestic industry 
     defined by the Commission if such workers, farmers, or 
     fishermen become totally or partially separated, or are 
     threatened to become totally or partially separated not more 
     than 1 year before or not more than 1 year after the date on 
     which the Commission made its report to the President under 
     section 202(f).''.
       (c) Special Look-Back Rule.--Section 203(a)(1)(A) of the 
     Trade Act of 1974 shall apply to a worker, farmer, or 
     fisherman if not more than 1 year before the date of 
     enactment of the Trade Adjustment Assistance Reform Act of 
     2002 the Commission notified the President of an affirmative 
     determination under section 202(f) of such Act with respect 
     the domestic industry in which such worker, farmer, or 
     fisherman was employed.
       Beginning on page A-120, line 7, strike all through page A-
     121, line 9, and insert the following:

     ``SEC. 294. NOTIFICATION BY INTERNATIONAL TRADE COMMISSION.

       ``(a) Notification of Investigation.--Whenever the 
     International Trade Commission (in this chapter referred to 
     as the `Commission') begins an investigation under section 
     202 with respect to an agricultural commodity, the Commission 
     shall immediately notify the Secretary of the investigation.
       ``(b) Notification of Affirmative Determination.--Whenever 
     the Commission makes a report under section 202(f) containing 
     an affirmative finding regarding serious injury, or the 
     threat thereof, to a domestic industry producing an 
     agricultural commodity, the Commission shall immediately 
     notify the Secretary of that finding.
       Beginning on page A-136, line 3, strike all through page A-
     137, line 2, and insert the following:

     ``SEC. 299C. NOTIFICATION BY INTERNATIONAL TRADE COMMISSION.

       ``(a) Notification of Investigation.--Whenever the 
     International Trade Commission (in this chapter referred to 
     as the `Commission') begins an investigation under section 
     202 with respect to fish or a class of fish, the Commission 
     shall immediately notify the Secretary of the investigation.
       ``(b) Notification of Affirmative Determination.--Whenever 
     the Commission makes a report under section 202(f) containing 
     an affirmative finding regarding serious injury, or the 
     threat thereof, to a domestic industry producing fish or a 
     class of fish, the Commission shall immediately notify the 
     Secretary of that finding.

                          ____________________