[Congressional Record Volume 150, Number 93 (Thursday, July 8, 2004)]
[Senate]
[Pages S7837-S7838]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. LAUTENBERG (for himself, Mr. Durbin, Mr. Levin, and Mr. 
        Reid):
  S. 2624. A bill to require the United States Trade Representative to 
pursue a complaint of anti-competitive practices against certain oil 
exporting countries; to the Committee on Finance.
  Mr. LAUTENBERG. Mr. President, today I am introducing legislation, 
with Senators Durbin, Levin and Reid, with Congressman DeFazio in the 
House, to bring fairness to the oil markets and do something to reverse 
the recent spikes in gas prices.
  Our legislation will force the United States Trade Representative 
(USTR) to initiate World Trade Organization (WTO) proceedings against 
OPEC nations. Under WTO rules, countries are not permitted to maintain 
export quotas. But OPEC nations actually collude to set such quotas.
  OPEC is an illegal cartel, plain and simple. We've allowed this 
cartel to operate for too long--it's time to put an end to it.
  The American people are feeling the effects of the OPEC cartel every 
day at the gas pumps. Many families are already struggling with lost 
jobs, stagnant wages and the rising costs of health care. High gas 
prices have only made matters worse.
  When President Bush took office, a gallon of gas cost $1.47. Today, a 
gallon of gas averages $1.90. For someone who buys one tank of gas a 
week, that increase costs $350 per year.
  All this adds up. Oil imports now account for $125 billion annually, 
or one-quarter of America's trade deficit. That money could be invested 
here at home to create American jobs, but instead we are being gouged 
by oil exporters.
  While Americans suffer, President Bush has done nothing to bring down 
gas prices. He says he will talk to his Saudi friends in the oil 
business. But talk is cheap. The American people want action. This bill 
today is an opportunity for action.
  I have also released a report today, explaining the basis for a WTO 
complaint against OPEC.
  In some ways, the allegations are simple and straightforward: OPEC 
manipulates world oil markets by imposing export quotas on oil. These 
quotas keep the price of oil artificially high.
  Without OPEC, market analysts have estimated that the free market 
price of a barrel of oil would be around 10 to 15 dollars lower than 
today's price. That would make a difference in gas prices of 20 to 45 
cents per gallon, saving American families hundreds of dollars per 
year. There is no reason to continue to tolerate OPEC's anti-
competitive behavior.
  Collusion to put quotas on oil exports--or any exports--is illegal 
under WTO rules. For example, the WTO has found that a treaty between 
the United States and Japan limiting semiconductor exports violated WTO 
rules.
  The Bush administration has been lax in dealing with OPEC. In my 
view, President Bush's ties to the Saudis and to big oil companies 
prevent him from sticking up for the American consumer.
  Indeed, while the squeeze was being put on American consumers, oil 
companies and refineries reported record profits in the first quarter 
of this year for operations in the United States. Earnings for U.S. 
domestic refining and marketing operations increased by 294 percent for 
Chevron-Texaco, 165 percent for BP, 125 percent for ExxonMobil, and 44 
percent for Conoco-Phillips over last year's levels.
  So while OPEC and their oil company allies have seen a boom, American 
families have seen a bust. In fact, for those middle-income Americans 
who will see any benefit at all from the recent tax cuts, rising gas 
prices alone will eat up half of those cuts.
  Since the Bush administration has failed to live up to its 
responsibilities, it's time for the Congress to stand up for the 
American people and force it to take action against OPEC.
  I urge support of this common-sense legislation, and I ask unanimous 
consent that the text of the legislation be printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

[[Page S7838]]

                                S. 2624

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. FINDINGS.

       Congress makes the following findings:
       (1) Gasoline prices have risen 80 percent since January, 
     2002, with oil recently trading at more than $40 per barrel 
     for the first time ever.
       (2) Rising gasoline prices have placed an inordinate burden 
     on American families.
       (3) High gasoline prices have hindered and will continue to 
     hinder economic recovery.
       (4) The Organization of Petroleum Exporting Countries 
     (OPEC) has formed a cartel and engaged in anti-competitive 
     practices to manipulate the price of oil, keeping it 
     artificially high.
       (5) Six member nations of OPEC--Indonesia, Kuwait, Nigeria, 
     Qatar, the United Arab Emirates and Venezuela--are also 
     members of the World Trade Organization.
       (6) The agreement among OPEC member nations to limit oil 
     exports is an illegal prohibition or restriction on the 
     exportation or sale for export of a product under Article XI 
     of the GATT 1994.
       (7) The export quotas and resulting high prices harm 
     American families, undermine the American economy, impede 
     American and foreign commerce, and are contrary to the 
     national interests of the United States.

     SEC. 2. ACTIONS TO CURB CERTAIN CARTEL ANTI-COMPETITIVE 
                   PRACTICES.

       (a) Definitions.--
       (1) GATT 1994.--The term ``GATT 1994'' has the meaning 
     given such term in section 2(1)(B) of the Uruguay Round 
     Agreements Act (19 U.S.C. 3501(1)(B).
       (2) Understanding on Rules and Procedures Governing the 
     Settlement of Disputes.--The term ``Understanding on Rules 
     and Procedures Governing the Settlement of Disputes'' means 
     the agreement described in section 101(d)(16) of the Uruguay 
     Round Agreements Act (19 U.S.C. 3511(d)(16)).
       (3) World trade organization.--
       (A) In general.--The term ``World Trade Organization'' 
     means the organization established pursuant to the WTO 
     Agreement.
       (B) WTO agreement.--The term ``WTO Agreement'' means the 
     Agreement Establishing The World Trade Organization entered 
     into on April 15, 1994.
       (b) Action by President.--
       (1) In general.--Notwithstanding any other provision of 
     law, the President shall, not later than 15 days after the 
     date of enactment of this Act, initiate consultations with 
     the countries described in paragraph (2) to seek the 
     elimination by those countries of any action that--
       (A) limits the production or distribution of oil, natural 
     gas, or any other petroleum product,
       (B) sets or maintains the price of oil, natural gas, or any 
     petroleum product, or
       (C) otherwise is an action in restraint of trade with 
     respect to oil, natural gas, or any petroleum product,
     when such action constitutes an act, policy, or practice that 
     is unjustifiable and burdens and restricts United States 
     commerce.
       (2) Countries described.--The countries described in this 
     paragraph are the following:
       (A) Indonesia.
       (B) Kuwait.
       (C) Nigeria.
       (D) Qatar.
       (E) The United Arab Emirates.
       (F) Venezuela.
       (c) Initiation of WTO Dispute Proceedings.--If the 
     consultations described in subsection (b) are not successful 
     with respect to any country described in subsection (b)(2), 
     the United States Trade Representative shall, not later than 
     60 days after the date of enactment of this Act, institute 
     proceedings pursuant to the Understanding on Rules and 
     Procedures Governing the Settlement of Disputes with respect 
     to that country and shall take appropriate action with 
     respect to that country under the trade remedy laws of the 
     United States.
                                 ______