Congressional Record, Volume 151 Issue 90 (Thursday, June 30, 2005)

[Congressional Record Volume 151, Number 90 (Thursday, June 30, 2005)]
[Senate]
[Pages S7750-S7766]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

DOMINICAN REPUBLIC-CENTRAL AMERICA-UNITED STATES FREE TRADE AGREEMENT
IMPLEMENTATION ACT--Continued

The PRESIDING OFFICER. Under the previous order, the Senator from
Alabama is recognized for 10 minutes.
Mr. SESSIONS. Mr. President, I congratulate my colleague Senator
Allard on his ability to move that legislation so rapidly. It makes you
wonder maybe if we could do more things around here that way.
My colleague from North Dakota raises a concern about trade deficits.
This is something I have worried about, too. A lot of people seem less
concerned than we, but it does bother me.
There is some good news out there. We are getting jobs outsourced to
our country. Alabama just had a number of good news items. Our
Mercedes, Daimler-Chrysler plant has doubled its employees to 4,000.
Honda just doubled its plant in Alabama to 4,000. Hyundai, a South
Korean company, just rolled out its first new automobile in a plant
that will have 4,000 employees and 7,000 employed by suppliers who
provide parts and components. Toyota has some 600 in the state as well.
Austal, an Australian company, is building ships in Alabama. I don't
know exactly how trade works. I am not able to comprehend it all.
Sometimes it works good for you, and sometimes it doesn't.
I am not religious about free trade. I think there are some people
who have it in their heads that if we have free trade, there will be
peace in the world and cancer will be cured and there will be no
problems left. That is not exactly so.
But trade is good. The more we trade, the better we get along, the
more prosperity that appears to exist. In my home State, unemployment
continues to fall and is now below 4.5 percent. It has been falling
regularly. I am not able to explain exactly why, because we are losing
textile jobs. But high-paid automotive jobs are coming in large
numbers. That is playing a good part in our advancement.
I have been concerned about this CAFTA agreement. I had not made up
my mind about how to vote on it. I have voted for some trade agreements
and against other trade agreements. I think we should look at these
agreements and see if it is a good deal or not. I had a particular
concern on the question of socks. Fort Payne, Alabama, is known as the
sock capital of the world. It is also the hometown of the great singing
group, Alabama. There are many wonderful people there that are
concerned about CAFTA. I spoke with one of them today about his
concerns.
I also met with Secretary of Commerce Gutierrez and spoke with Trade
Representative Portman today to discuss my concerns with them. I now
feel much better about our ability to address them. They have indicated
to me they understand the problem. They are concerned about it, and the
Administration will look for meaningful opportunities to be helpful in
ways that can make a difference for our sock industry. I feel a lot
better about that question.
Looking at the matter as a whole, this is not a large agreement.
There exists about a $31 billion trade relationship between the United
States and the six CAFTA countries. That is, in the scheme of things,
not large. We have an almost balanced trade relationship with these
countries now. Without this agreement, when we ship domestically
manufactured goods to these countries, they face a much higher tariff
than when those countries ship goods to us. So if we execute this trade
agreement, clearly more barriers will go down in those countries than
in the United States. The experts tell us that under these
circumstances, we should certainly move to a trade surplus with these
countries. That is good. If we are concerned about a trade deficit, we
ought to vote for things that might help us go to a trade surplus.
The picture worldwide, however, is not so good. Looking at our trade
with the United Kingdom, Germany, and France, one sees a $140 billion
trade relationship. And we have a $65 billion trade deficit with those
countries. Look at China. We have a $231 billion trade relationship
with that country including a $160 billion trade deficit. Look at
Mexico and Canada, the NAFTA countries. We have a $266 billion trade
relationship with Mexico and a $445 billion trade relationship with
Canada--$711 billion with just those two countries--with a trade
deficit of $110 billion.
The CAFTA nations are small countries by comparison. They want to
progress. They are young democracies. They are our neighbors south of
us--many virtually directly south of my hometown of Mobile, Alabama.
And they are good people. They have been friends to the United States.
Any trade deficit is a concern, I acknowledge, but I would also point
out that the proposed agreement with these countries would likely
convert it into a surplus.
As you look at trade and the relationships we have with these
countries, it is also important that we look at our national security
interests.
First, I believe this trade agreement will move us into an enhanced
trade relationship with these six countries. That enhanced trade
relationship will move us from a deficit to a surplus, and it will
increase trade between our countries, and that will be good for all of
us. I am convinced it is good economics.
Second, and very importantly, these are our allies and friends. Let
me ask you: how have they proven their friendship? I point out that
every one of these six countries supported our efforts in Iraq. Four of
them sent troops to Iraq. Four of these countries we are seeking to
have a level trade agreement with have actually sent troops to Iraq. Is
that true with Mexico, France, Canada, Germany, or China? I submit to
you that it is not. These CAFTA countries are our friends and neighbors
with whom we have a balanced trade relationship. If we pass this bill,
we can even move to a surplus.
Mr. President, I think it makes good economic sense. It makes good
sense in terms of national security. Let me just say one other thing,
quite frankly. One reason our trading relationship has not been as
productive with Mexico and other Latin American countries as some had
predicted, I think, is because of the incredible surge of imports from
China. China got out ahead and they are moving forward and they are
very aggressive. We ought to take what steps we can, without
hesitation, in my view, to make ourselves, our neighbors, our friends,
and our allies more able to compete on a level playing field with
China. Why would that not be a good thing? I think it would be a good
thing.
Mr. President, there are a number of considerations that I have
evaluated as I have considered this trade agreement. I am convinced
that compared to most of them, if not all of them, this is probably the
most worthwhile trade agreement we have had presented to us. I think we
ought to ratify it and establish a closer bond and partnership with
these countries, our friends and neighbors. It will be good for our
economy and our national security.
I yield back such time as I have remaining.
The PRESIDING OFFICER. Under the previous order, the Senator from
Minnesota is recognized.
Mr. DAYTON. Mr. President, I thank the Senator from Montana for
making the time available. I will be brief. In addition to what I said
earlier today, I want to reference representations that have been made
since then. It is hard for anyone listening, and even for a Member
watching these proceedings, to separate the facts from all of the
claims and descriptions that are being presented.
Unfortunately, in complicated issues like this, even experts can
reach different conclusions. So it is not surprising that Senators can
reach different conclusions--often from different information or
different interests from the people we represent. I find it less
understandable or acceptable when I hear mischaracterizations of the
expressed positions of other affected Americans. If somebody here or
anybody else chooses to try to convince people that what is not good
for them is what they should believe is good for them, I will disagree,
but I won't object to that undertaking.
I do object, however, when the actual statements or the official
positions by individuals or organizations are not accurately
represented, especially ones being made as currently as today or
yesterday. So I want the official public record of this debate to
record accurately the positions on DR-CAFTA that have been taken by the
American

[[Page S7751]]

sugar industry in general and Minnesota's sugar beet farmers and
workers in particular.
A public statement issued today by the Red River Valley Sugarbeet
Growers Association and major Minnesota sugar beet cooperatives on
behalf of the State of Minnesota's sugar industry stated in part:

. . . and we remain convinced that a vote for CAFTA, based on
a short-term fix, places Minnesota's 20,000 sugarbeet farmers
and workers at risk.
Plain and simple: No deal was brokered that addresses our
concerns with CAFTA. And there appears to be no interest by
the U.S. Department of Agriculture or the U.S. Trade
Representative's office to find a long-term comprehensive
solution.
Our jobs, farms, factories, and way of life are on the
line. It's our livelihoods that hang in the balance of the
CAFTA vote, and we know what's best for us.

The administration's proposal to ``fix sugar'' is
unsustainable. It will not protect our jobs or Minnesota's
rural economy because CAFTA is a permanent trade agreement.
The men and women of Minnesota's sugar industry remain
adamantly opposed to CAFTA.

Mr. President, I ask unanimous consent that the full statements by
the Minnesota organizations, plus the American Crystal Sugar Company
letter and the American Sugar Alliance release be printed in the Record
at the end of my remarks.
The PRESIDING OFFICER. Without objection, it is so ordered.
(See exhibit 1.)
Mr. DAYTON. Mr. President, plain and simple, the Bush administration
is trying to make temporary side deals that run contrary to the actual
DR-CAFTA treaty to get the votes necessary to pass it. With the sugar
industry, the Secretary of Agriculture just yesterday announced his own
farm program, with no congressional hearings or review, to be paid for
with tax dollars, at his entire and sole discretion. It is, frankly,
such an ill-considered, ill-designed, uneconomical and improper program
that if any member of the Senate Agriculture Committee on which I serve
introduced it, I think we would be run out of the room. If any Member
on the floor introduced it, I think it would be defeated overwhelmingly
by a vote. Yet it is supposed to be sweetening this agreement and
making it palatable to pass tonight. The Secretary will buy U.S. sugar
and convert it to ethanol for no good reason, or economical reason,
except to get this agreement passed in the Senate.
To their credit, the Minnesota sugar beet farmers, workers, and
industry leaders are not buying this boondoggle. They know it is a bad
deal for them. It is a bad deal for the U.S. agricultural economy, the
ethanol industry, and the American taxpayers. It is claimed to be for
them, but they don't want it. It is claimed to be good for them, but
they know it is not. It shows, however, an administration that is so
determined, and perhaps desperate, to get what it wants--even though it
is not what is best for America--that they will make the agreement even
worse, at American taxpayer expense, with these kinds of side
agreements and deals that should be rejected by the Senate.
I yield the floor.

Exhibit 1

CAFTA Vote Critical to Sugar Industry's Future

In response to the upcoming U.S. Senate vote on the Central
America Free Trade Agreement (CAFTA), the Minnesota sugar
industry release the following statement (supported American
Crystal, Minn-Dak Farmers Cooperative, Red River Valley
Sugarbeet Growers Association and Southern Minnesota Beet
Sugar Cooperative):
``The sugar industry has said throughout the debate on
CAFTA that the agreement presents our industry with short-
term and long-term problems. In the last few days an effort
was made to provide a short-term fix. Friends do sometimes
disagree, and we remain convinced that a vote for CAFTA,
based on a short-term fix, places Minnesota's 20,000
sugarbeet farmers and workers at risk.
``Plain and simple: No deal was brokered that addresses our
concerns with CAFTA. And, there appears to be no interest by
the U.S. Department of Agriculture or the U.S. Trade
Representative's office to find a long-term comprehensive
solution.
``Our jobs, farms, factories, and way of life are on the
line. It's our livelihoods that hang in the balance of the
CAFTA vote, and we know what's best for us.
``The Administration's proposal to `fix sugar' is
unsustainable. It will not protect our jobs or Minnesota's
rural economy because CAFTA is a permanent trade agreement.
``The men and women of Minnesota's sugar industry remain
adamantly opposed to CAFTA. We will continue to send the
message to Minnesota's lawmakers to vote against it.''
The Senate is expected to vote today. A House vote is
likely to occur before August.
____

June 30, 2005.
Hon. Mark Dayton,
U.S. Senate,
Washington, DC.
Dear Senator Dayton: Thank you for your strong support of
the Minnesota sugarbeet industry. Your understanding of the
threat to the sugar industry from regional and bilateral
trade agreements like CAFTA is sincerely appreciated.
Despite rumors and conjecture that recent discussions
between some Members of Congress and the Administration have
resolved the sugar industry's concern over the CAFTA,
American Crystal Sugar Company remains firmly opposed to the
trade agreement. We respectfully ask that you maintain your
strong opposition.
Sincerely,

Kevin Price,

Director of Government Affairs,
American Crystal Sugar Company.
____

Last-Ditch Efforts for Sugar Deal Fail

Washington.--Sugar industry leaders remained steadfast in
their opposition yesterday to the Central America Free Trade
Agreement (CAFTA). They rejected a repackaged, short-term
offer from Administration officials, who are seeking to drum
up last-minute support for the controversial trade deal,
which faces stiff opposition in Congress.
``There is no deal, and it's obvious that there will be no
deal,'' said Terry Jones, a Wyoming sugarbeet farmer and
president of the American Sugarbeet Growers Association. ``We
have said all along that we need a long-term solution to our
problems with CAFTA and other trade agreements. What we were
presented yesterday was virtually the same short-term
proposal we'd already rejected.''
Once again, the Administration presented a concept to pay
foreign countries not to send America unneeded sugar for two
years. The only difference to the proposal was the promise to
perform a study to examine the viability of a sugar ethanol
program.
The Administration said this was the final offer and that
conversations would not continue. A reasonable and
comprehensive plan presented by sugar producers two weeks ago
was rejected by the Administration.
``We are very appreciative of the members of Congress who
have spent so much of their time and energy looking for a
comprehensive solution to our CAFTA concerns,'' said Fritz
Stein, a Florida cane grower for the Sugar Cane Growers
Cooperative of Florida. ``We hope they understand why sugar
farmers oppose this deal. And, we hope they'll cast an
emphatic NO when they vote on CAFTA.''
``A farmer-owned factory in Oregon recently stopped
processing sugarbeets because of unneeded imports to the U.S.
market,'' said beet farmer Perry Meuleman, who is also
president of the Idaho Sugarbeet Growers Association. ``This
same scene is playing out across the country, people are
losing jobs, and CAFTA on top of NAFTA, just exacerbates the
problem. It's time for Congress to open its eyes to the pain
trade agreements are causing and put a stop to it.''
The American Sugar Alliance vowed to work night and day to
defeat the trade pact.
Religious groups; numerous states government; trade unions;
small businesses; national farm associations; various textile
interests; environmental groups; and Latin American human
rights organizations are just a few of the groups that join
sugar farmers in calling for the swift and sound defeat of
CAFTA.--American Sugar Alliance, June 29, 2005.

The PRESIDING OFFICER. Under the previous order, the Senator from New
Hampshire is recognized for 5 minutes.
Mr. SUNUNU. Mr. President, in discussing this trade bill earlier
today, and throughout the day, I think a lot of mention has been made
of specific firms--firms that over the past number of years have been
affected by international trade. There was a list on the floor that
included companies such as Levi's and Fruit of the Loom. That is a
fact. These companies have been affected. They are eligible for the
Trade Adjustment and Assistance Program, and that is one of the
challenges of the job that we do as elected representatives. We see
firms in States grow, but we also see them have to deal with challenges
of competition, both domestic and international competition.
In New Hampshire, my home State, we have had an electronics firm that
saw its plastic molding jobs go to Mexico. But even more recently, we
have seen a firm that did meat processing lose 500 or 600 jobs to some
Midwestern States. So we see competition not just from overseas but
domestically as well.
At the same time, we cannot lose sight of the jobs that are created.
Over the past year, I think 2.5 million jobs have been created in the
United States. Over the last decade, it is a significantly greater
number than that. It

[[Page S7752]]

has been in areas like software, pharmaceuticals, and financial
services--significant, value-added, high-paying jobs.
That brings me back to the very basic question of why we even trade
in the first place. We trade, and I support expanding opportunities for
trade and knocking down barriers to trade because it creates
opportunities for consumers. It gives our consumers in America the
opportunity and the freedom to buy the products they want, to purchase
the goods and services that they want to choose. It gives them access
to products and services that they would not otherwise have. It is good
for American consumers, and it is good for our economy. It gives firms,
large and small, in a similar way access to cheaper, affordable goods
and services, and trade allows American individuals, American companies
to focus on what we do best, thereby improving our productivity here at
home.

We want trade to be fair. Everyone talks about fair trade. If we look
at the tariffs that exist today--this is a small card that was prepared
by the chairman of the Finance Committee, but it highlights what we pay
now in tariffs of products coming into the United States: 10 percent,
16 percent, 11 percent, 12 percent on products such as petroleum or
chemicals, metals and metal products, motor vehicles and parts. We pay
10, 12 or 15 percent in tariffs, and the countries that are affected by
this agreement today pay zero. We pay 10 or 12 percent, they pay zero.
What this trade agreement will do is knock that tariff that U.S.
companies and consumers pay down to zero on all the products I just
mentioned. That is why this is a step in the right direction. That is
why an agreement such as this that lowers tariffs benefits consumers,
creates a stronger global economy, but perhaps most important of all is
good and right for the U.S. economy.
I am very pleased to support S. 1307. I know it is very difficult for
the chairman and the ranking member of the Finance Committee to move
something like this through their committee, but I appreciate their
work and congratulate them for their work and urge my colleagues to
support it.
I thank the Chair.
The PRESIDING OFFICER. Under the previous order, the Senator from
North Dakota is recognized for 5 minutes.
Mr. DORGAN. Mr. President, I believe the previous order had the
Senator from Nevada going next.
Mr. BAUCUS. That is correct.
The PRESIDING OFFICER. The Senator is correct. The Senator from
Nevada is not here.
Mr. BAUCUS. Mr. President, I suggest the next speaker be the Senator
from North Dakota and as soon as the Senator from Nevada arrives, he
follows the Senator from North Dakota, if he is here on time.
Mr. DORGAN. I would sooner follow the Senator from Nevada by the
accepted order.
The PRESIDING OFFICER. Will the Senator restate what he said?
Mr. DORGAN. Mr. President, we have an order that is established. My
understanding is that the Senator from Nevada is to speak next; is that
correct?
Mr. BAUCUS. Yes.
The PRESIDING OFFICER. The Senator from Nevada sleeps on his rights
if he is not here.
The Senator from North Dakota is recognized for 5 minutes.
Mr. DORGAN. Mr. President, I wonder if you might want to further
disclose what ``sleeping on one's rights'' means? Ignore the question.
We will all assume the Senator from Nevada is awake, just not here.
I heard the discussions tonight about Central America. Earlier this
evening, I heard about the need to help Central America. I have
traveled to, I think, all the countries involved. I have a great
affection for the people of Central America. I also have great
affection for a Central America that I would define--North Dakota,
South Dakota, Minnesota, Iowa. We call that central America. I am very
interested in Central America south of our border but most especially
here. The question is, Will this advance the interests of Central
America and America?
My colleague just described how this provides new opportunities. It
is interesting, I have been here through all of the trade agreements, I
believe, all the recent trade agreements in the last 15 years or so. I
don't know that there are any new speeches, and that perhaps includes
mine. They just dust off the old speeches: This means new opportunity.
You show them it did not mean new opportunity, it meant less
opportunity. They say: No, no, you don't understand, this means new
opportunity. It is like a script--a bad script, to be sure, but a
script. So away we go again.
I fear I know the results of the debate tonight. I have great respect
for the Senate. The vote we will commence following all of the speakers
I assume will provide, once again, a victory for the President's
efforts to get this CAFTA agreement passed. The reason I know that is
likely to be the case is because I have sat here and counted the number
of times I heard my colleagues stand up and say: They promised, they
promised, they promised me this, they promised me that, they promised
me the other thing.
I am thinking we do not learn about promises, either. None of these
promises mean a thing, not a whit. We heard them all, we have seen them
all, and as soon as the vote is taken tonight, I say to those with
their blue suits and their pride having extracted these wonderful
promises, go to the front steps of the White House and then just speak
into the wind and understand that you did not get anything. What you
got was a vote. You were persuaded to vote for a trade agreement that
is exactly as it is written. Side agreements mean nothing; promises
mean nothing. They got your vote, they got the trade agreement, and it
is one more chapter in a book of failed strategies. That is what
happens.

I will remain hopeful, however, that one day sufficient numbers of
this Congress and this Senate will decide that we are moving down the
wrong road, we ought to turn around and change direction, and move in a
way that expands opportunity for this country, cares a little bit about
American jobs, sets up competition--yes, a competition with others that
includes conditions that will raise others up rather than push us down.
That will one day, in my judgment, be something the American people
will demand of the Congress.
Apparently, not sufficient of them do so now, State after State, as
represented by the votes that will be cast here later. But one day it
will happen. If it is too late, at some point the strength will be
sapped from this country, and we will not long remain a world economic
power unless we have a strong, growing, vibrant manufacturing base. We
lost half of that manufacturing base in the last 25 years. We are
losing more of it as we speak. We face other challenges.
I just described this, which encapsulates a lot of the debate here:
``China now wants to buy the ninth largest oil company in the U.S.''
This encapsulates a whole series of issues about which we talked. I
think one day soon the American people will say to the Congress: You
have to wake up. You cannot be passing trade agreements that pull the
rug out from under this country. Trade agreements must be mutually
beneficial, and I have not yet seen one in the last two decades.
So, Mr. President, I am going to vote no. I hope as many of my
colleagues who can will vote no. I hope one day soon those of us who
feel as I do will prevail. Apparently, tonight will not be the night.
I yield the floor.
The PRESIDING OFFICER. The Senator yields back the remainder of his
time. Under the previous order, the Senator from Montana is recognized
for 10 minutes.
Mr. BAUCUS. Mr. President, this has been a long debate, and
generally, in most respects, the statements have been a little bit one-
sided: CAFTA is great, it is going to help; or CAFTA is a terrible
idea; it will send us down the drain. I am hopeful because I sensed
that in the last 2 to 3 hours, the statements have been a little more
toward the center, trying to figure out realistically what is
happening, what is going on here.
I think it is true, we all know in this competitive world that trade
is important, it is essential. Companies have to trade, people have to
trade both ways. If we do not, we are going to lose out big time. That
is clear. There is not much doubt about that. But it is also true--and
this has not been sufficiently addressed, certainly not in this debate
and certainly not in the country, is

[[Page S7753]]

how we address the dislocations that happen on account of trade because
so many people lose jobs through no fault of their own.
They work at a company, they work at a plant, say a manufacturing job
at a plant, and the company seeking lower wages or lower health care
costs goes overseas, maybe seeking software development, R&D
investment, and an American loses his job. This might be a 20-year-old,
it might be a 50-year-old, who loses his or her job. It is not the
fault of the employee. It is because of the system. It is because the
world is changing so dramatically. We have not begun at all to address
what we should do about that.
We do have trade adjustment assistance. Trade adjustment assistance
today applies only to persons who lose manufacturing jobs. It does help
people who lose manufacturing jobs get some assistance, get some
training, get some health care benefits, but it ought to be easier to
get, and it ought to cover more workers, including service workers.
What we care about is training people, finding ways for them to get
jobs that make a difference, to help them feel good about themselves
without big dislocations in their families.
I might say we also are not addressing the larger trend that is
coming. We have lost, say, 3 million manufacturing jobs in America over
2, 3, or 4 years. They are gone. We have also picked up a good number
of jobs. But what is the area in which we have picked up a lot of jobs?
Lately, in the last couple of years, it is because of 9/11. It is
homeland security jobs. It is national defense jobs.
Clearly we need those jobs. But it makes one wonder a little bit,
first, if there were no 9/11, sounds like there would be a huge net
loss of jobs. We would not have the homeland security jobs we now have.
To make matters more, if not alarming, at least serious, is that
although we have lost about 3 million manufacturing jobs, we picked up
maybe roughly the same in the homeland security jobs, the next wave is
going to be much greater and it is going to make the loss of
manufacturing jobs pale in comparison. Our economy is creating and
destroying jobs at a faster and faster rate. The total number of jobs
may not be decreasing, but the rate of churn in the economy is getting
faster and faster, especially with service jobs. This country is not
ready for that. We have no paradigm, no structure, to deal with it. The
days when you could work single job for 30 years without updating your
skills are over. We need to be more prepared, have more educated
workers, and more adjustment assistance.
Knowledge is not perfect. A little bit of knowledge is a dangerous
thing. A book that I started to read is a good book that most Americans
should read, called ``The World Is Flat,'' by Thomas Friedman. If one
reads that, they get a sense of how much technology, communications
technologies, moves things from bottom up instead of top down. In the
economic world, nothing is sacred anymore. It is such a free-for-all.
It is the wild west in a certain sense. I do not think we are ready for
that.
So this debate has been helpful. It helps bring out some of the
provisions of CAFTA, what it does and does not do, but it does not
address the fundamentals. It does not address the basic problems we
should be addressing. I am quite hopeful that sooner rather than later
we are going to begin to address and we are going to hear Senators give
speeches on what needs to be done. After that, there will be some
proposals and debates on those and I am very hopeful that will happen
sooner rather than later.
With respect to the more narrow issue of CAFTA, it is my belief,
frankly, that regrettably the administration did not work with Congress
as much as it should have. If it started earlier, we could very well
have had a big vote for CAFTA, especially with respect to sugar. The
administration came to Senators with the sugar concerns, beet sugar,
cane sugar, very late in the game. In fact, there are negotiations
going on right now. It is only because they realized they do not have
the votes, especially in the House, at least not yet. The same is true
with the labor provisions, no real negotiations, no real discussion
there. That is unfortunate because we are one of the two bodies trying
to find ways to get trade agreements.
I must say, however, that is not true about environmental issues.
About a year or so ago, I realized that on CAFTA, environmental issues
were going to be a big problem so I asked Ambassador Zoellick if he
could come over to my office and talk about it, and he did. I must say
I appreciate the way Ambassador Zoellick, over a period of about a
year, dealt with the environmental issues so that would be much less of
an issue in this agreement.
There has been a lot of talk about trade fatigue. Maybe the people of
our country, Members of Congress, are beginning to wonder, gee, do
these agreements mean much. I think that is an appropriate question.
There is trade fatigue. One is because we are not enforcing our current
trade agreements as we should. If we were to start to enforce our trade
agreements, I think Americans would start to think, hey, maybe our
Government is doing something to help us out.
My final two points are this: We speak about job loss and we speak
about job gain. More importantly, there is a lot of talk about the
economy is doing better. It masks the real problems that are going on,
and that is the tyranny of averages. Average numbers do not mean much
of anything. Why? Because we are such a disparate country. Some people
have certain kinds of jobs. Some people have a lot of income, some
people do not. That is not the question, what is the average GDP in the
economy and all of that.
It helps a little bit, but we are representing people. There are
employees. They are the people who work and an awful lot of people are
getting hurt these days. A lot of people are doing very well. Bigger
companies do very well, but a lot of people are not doing well, and a
lot of people who work for big companies are not doing well.
I urge us to remember who we work for. We work for the people. They
are the ones who elect or unelect us. I urge us to remember that point.
Finally, I will end where I began, namely, I am quite hopeful. I
sense in this agreement, this debate, that people are starting to
realize what the real issues are and beginning to realize that maybe
the administration could have done a better job in talking to the
Congress about the provisions that are in this agreement so that the
Congress and the administration can work these out in subsequent trade
agreements so we do not have quite the same problems we have tonight.
At least I hope so. I am hopeful that will happen.
I yield the remainder of my time.
The PRESIDING OFFICER. The Senator's time has expired.
Under the previous order, the Senator from Iowa is recognized for 10
minutes.
Mr. GRASSLEY. Mr. President, I hope I can say the Senate is going to
pass S. 1307. I think we will do that. I am going to work the floor to
make sure that happens. We have had an awful lot of support expressed
for the bill today, and so I look forward to an announcement of a
majority vote.
I think history will record this important legislation as a positive
step in the development of democracy and prosperity in the CAFTA
countries that has developed over the last 20 years, greatly expanding
that. I am also confident that our leadership in passing CAFTA will be
rewarded through benefits our Nation enjoys under this trade agreement,
and more importantly, in the broader picture, advancing our overall
trade agenda, particularly with the Doha round of negotiations going on
throughout the course of 2005.
I also want to take a moment to compliment Senator Coleman of
Minnesota. Senator Coleman has worked hard to create export
opportunities for his farmers and manufacturers while looking after the
interests of his sugar farmers, who Senator Coleman clearly cares
deeply about.
Senator Coleman worked to get his sugar farmers disaster assistance a
couple years ago when they were originally ineligible. And now, Senator
Coleman has secured a commitment from this administration that the
sugar import cap established in the farm bill will not be substantively
violated as long as this farm bill is in place.
I want to compliment him on his commitment and dedication to his
constituents. I appreciate his efforts to

[[Page S7754]]

find a long-term solution to this complex issue.
I am ready to yield back the balance of time and proceed to a vote.
The PRESIDING OFFICER. The Senator has yielded back the remainder of
his time.
Under the previous order, the minority leader is recognized.
Mr. REID. Mr. President, of all the trade agreements this body has
considered since I have been here, I would like to be able to support
this one. I think it is remarkable how the CAFTA countries have turned
from pasts of violence and instability to hopeful democracies. The
initial economic and political reforms made by these countries are an
important sign of progress.
Unfortunately, this trade agreement is seriously flawed. And, more
importantly, it is symptomatic of the Bush administration's rudderless
trade and economic policy.
The CAFTA countries account for less than 1.5 percent of total U.S.
trade. The combined economic size of the CAFTA countries is smaller
than each of the top 25 metropolitan areas in America. Yet, the Bush
administration has made CAFTA its number one trade priority this year.
I don't know if the President even has any trade policies other than
CAFTA.
I know that President Bush has no policy for dealing with the U.S.
trade deficit, which set a record last year of over $600 billion and is
on pace to surpass $700 billion this year.
Economists have warned that our trade deficit is unsustainable and
could threaten the U.S. and global economies. If anyone tells you that
CAFTA will help reduce the deficit, they are confused or are being
misleading. The CAFTA countries account for just 0.3 percent of the
U.S. trade deficit. They are barely a molecule of water in the
proverbial drop in the bucket. Instead of coming up with a policy for
addressing the deficit, the administration sits in denial. The Treasury
Secretary even likes to say our enormous trade deficit is a sign of
U.S. economic strength.
In order to fund the enormous U.S. deficit, the Nation has to borrow
from foreign governments. The Bush administration has managed to
accumulate more foreign-owned debt in 4 years--$921 billion--than the
U.S. accumulated in the first 220 years of its existence.
I do not consider that a sign of strength; I consider it a cause for
concern. If the Bush administration does not acknowledge something is a
problem, how can you come up with a policy to fix it?
The Bush administration at least concedes that China is a problem.
The U.S. trade deficit with China was over $160 billion last year--more
than ten times the size of total U.S. exports to the CAFTA countries.
We had a $36 billion trade deficit with China just in advanced
technology products--more than twice the total U.S. exports to CAFTA.
Yet the Bush administration's only policy seems to be empty rhetoric.
It has no strategy to ensure that China ends its currency manipulation.
It has no strategy to reduce China's 90 percent piracy rates. It has no
strategy for ensuring China complies with all its WTO obligations. It
has no strategy for responding to China's industrial policies in areas
critical to the U.S. economy, like high-tech goods, automobiles,
software, and energy.
Except for an occasional rhetorical oar splashing around the water,
U.S. trade policy toward China is totally adrift.
The administration likes to note that the U.S. exports more to the
CAFTA countries than to Russia, India, and Indonesia combined, as if
that is a great selling point for CAFTA.
But, that statistic is really an indictment of the administration's
trade policy. The economies of those three countries are more than 25
times the size of the CAFTA countries. Why do we export so little to
those three countries?
If the U.S. exported as much to Russia, India, and Indonesia as it
does to the CAFTA countries--relative to the size of their GDPs, the
U.S. would gain about $360 billion in exports--120 times the benefit
touted for CAFTA. Why are we focusing on CAFTA and not focusing on
opening these and other markets that would make a much bigger
difference for the U.S. economy?
The Bush administration likes to negotiate new trade agreements, but
it never gets around to enforcing the ones we already have. President
Clinton brought an average of 11 cases in the WTO each year to open
foreign markets. The Bush administration brought 12 WTO cases total in
4 years.
Once again, this administration has no policy for doing the things
that really matter for the U.S. economy. But it has given us CAFTA and
all its flaws.
There are always winners and losers in trade agreements. The rich few
in these countries will be the winners, while the poor majority will be
the losers. The CAFTA countries already have some of the highest levels
of income inequality in the world. The CAFTA agreement will exacerbate
these problems rather than help them.
Democrats called for rules to help out the ``little guy'' in the
CAFTA countries--stronger labor provisions and significant
investments--but the Bush administration rejected them. The CAFTA
countries have serious worker rights abuses. The U.S. Department of
State, the International Labor Organization, and numerous independent
human rights groups have all catalogued these abuses extensively. El
Salvador's independent government-appointed Human Rights Ombudsman put
it well. As reported by the Washington Post last year, she ``said both
government and industry have `an explicit intent to destroy unions.' ''
CAFTA does not require that these countries' labor laws meet basic
internationally accepted standards. The CAFTA countries may weaken
their labor laws at will. If one of the CAFTA countries allowed child
labor, blacklisting, or intimidation of workers, it would all be OK
under CAFTA.
Anyone who buys Bush administration claims that it sincerely wants to
try to improve worker rights in the region, I have some ocean front
property in my home State to sell you. The Bush administration has
consistently sought major cuts in U.S. funds to the programs that
improve worker rights overseas. This administration simply does not
care about the issue.
As I said, it is inevitable that trade has winners and losers. The
Bush administration has ignored those who are hurt by expanded trade
here at home, however.
Democrats succeeded in getting an amendment added to CAFTA to provide
training and assistance for more U.S. workers injured by trade. The
Bush administration stripped this provision out of the legislation.
Because of CAFTA's flaws, leading groups of Latinos have announced
their opposition or raised serious concerns about it--including the
Congressional Hispanic Caucus and Central American bishops. These
groups worry that CAFTA will hurt poor Latinos in Central America and
here at home.
This administration's trade policy--when it has one--is the wrong
policy for America. We should demand that the administration re-
negotiate CAFTA and come back with a better agreement that makes sense
for America and the region. More importantly, we should demand that the
administration develop a comprehensive trade policy that addresses the
critical issues, including the trade deficit, the emergence of China,
and tough enforcement of U.S. rights under trade agreements, that
reflect the priorities of the American people.
The PRESIDING OFFICER. Under the previous order, the majority leader
is recognized.
Mr. FRIST. Mr. President, the Senate will shortly vote on CAFTA--the
Central American Free Trade Agreement.
This agreement will eliminate most trade barriers between the United
States, Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, and
the Dominican Republic.
Over the last half century, the United States has led the way to
opening new markets and encouraging free trade around the globe. These
efforts have had tremendous success.
Everyday, American consumers and businesses benefit from the
competition and choice that trade expansion brings. As we promote free
and fair trade agreements, we create economic opportunity and build
relationships that will continue to grow for years to come.
Under the agreement, six CAFTA countries will allow 80 percent our
exports to enter their countries duty-free.
As a result, CAFTA will create our second largest export market in
Latin America, behind only Mexico.

[[Page S7755]]

This agreement is a huge opportunity for both sellers and buyers, for
all people who make transactions happen. It's like opening a huge new
store for American businesses--where we get the same price for our
goods but--because we pay fewer tariffs--our customers pay less.
This is a win-win.
CAFTA will open the doors to 44 million new consumers of American
goods. And more sales to Central America means more jobs here at home.
With this agreement, over 27,000 new jobs will be created in its
first year of implementation--over 500 of which will be in Tennessee.
And 9 years after implementation, thanks to CAFTA over 137,000
Americans--including over 2,000 Tennesseans--will have the benefit of a
new job.
CAFTA means jobs. American jobs. Tennessee jobs. It means more
prosperity in our pockets.
Even more, CAFTA will allow our Nation to strengthen its bonds with
countries in the region. A stronger relationship will allow us to more
effectively work together to fight the war on terror and enhance the
social stability of these nations.
We can also make positive strides in combating the trafficking of
illegal drugs. And, as a result, reduce the supply of drugs on our
Nation's streets and in our neighborhoods.
Furthermore, strengthening our mutual economic interests will
strengthen our national security.
Twenty years ago, only two of the CAFTA nations--Costa Rica and the
United States--were established democracies. Today, all seven can be
counted among the free nations of the world.
CAFTA will bolster democracy in Central America and provide a model
for freedom seekers around the world.
We simply cannot leave the United States on the sidelines as other
nations rush to embrace free trade. We have an opportunity to act with
CAFTA.
I urge my colleagues to support this agreement. A vote for CAFTA is a
vote for America's farmers and manufacturers. It is a vote for more
jobs for hardworking Americans. It is a vote for stable democracies and
the spread of freedom to all corners of our globe.
CAFTA will move America forward. It will move all the Americas
forward.
I ask for the yeas and nays.
The PRESIDING OFFICER. Is there a sufficient second?
There is a sufficient second.
The question is on the engrossment and third reading of the bill.
The bill was ordered to be engrossed for a third reading and was read
the third time.
The PRESIDING OFFICER. The bill, having been read the third time, the
question is, Shall it pass? On this question, the yeas and nays have
been ordered.
The clerk will call the roll.
The legislative clerk called the roll.
Mr. DURBIN. I announce that the Senator from Connecticut (Mr.
Lieberman) is absent due to a death in the family.
The PRESIDING OFFICER. Are there any other Senators in the Chamber
desiring to vote?
The result was announced--yeas 54, nays 45, as follows:

[Rollcall Vote No. 170 Leg.]

YEAS--54

Alexander
Allard
Allen
Bennett
Bingaman
Bond
Brownback
Bunning
Burr
Cantwell
Carper
Chafee
Chambliss
Coburn
Cochran
Coleman
Cornyn
DeMint
DeWine
Dole
Domenici
Ensign
Feinstein
Frist
Grassley
Gregg
Hagel
Hatch
Hutchison
Inhofe
Isakson
Jeffords
Kyl
Lincoln
Lott
Lugar
Martinez
McCain
McConnell
Murkowski
Murray
Nelson (FL)
Nelson (NE)
Pryor
Roberts
Santorum
Sessions
Smith
Stevens
Sununu
Talent
Voinovich
Warner
Wyden

NAYS--45

Akaka
Baucus
Bayh
Biden
Boxer
Burns
Byrd
Clinton
Collins
Conrad
Corzine
Craig
Crapo
Dayton
Dodd
Dorgan
Durbin
Enzi
Feingold
Graham
Harkin
Inouye
Johnson
Kennedy
Kerry
Kohl
Landrieu
Lautenberg
Leahy
Levin
Mikulski
Obama
Reed
Reid
Rockefeller
Salazar
Sarbanes
Schumer
Shelby
Snowe
Specter
Stabenow
Thomas
Thune
Vitter

NOT VOTING--1

Lieberman

The bill (S. 1307) was passed, as follows:

S. 1307

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

(a) Short Title.--This Act may be cited as the ``Dominican
Republic-Central America-United States Free Trade Agreement
Implementation Act''.
(b) Table of Contents.--The table of contents for this Act
is as follows:

Sec. 1. Short title; table of contents.
Sec. 2. Purposes.
Sec. 3. Definitions.

TITLE I--APPROVAL OF, AND GENERAL PROVISIONS RELATING TO, THE AGREEMENT

Sec. 101. Approval and entry into force of the Agreement.
Sec. 102. Relationship of the Agreement to United States and State law.
Sec. 103. Implementing actions in anticipation of entry into force and
initial regulations.
Sec. 104. Consultation and layover provisions for, and effective date
of, proclaimed actions.
Sec. 105. Administration of dispute settlement proceedings.
Sec. 106. Arbitration of claims.
Sec. 107. Effective dates; effect of termination.

TITLE II--CUSTOMS PROVISIONS

Sec. 201. Tariff modifications.
Sec. 202. Additional duties on certain agricultural goods.
Sec. 203. Rules of origin.
Sec. 204. Customs user fees.
Sec. 205. Retroactive application for certain liquidations and
reliquidations of textile or apparel goods.
Sec. 206. Disclosure of incorrect information; false certifications of
origin; denial of preferential tariff treatment.
Sec. 207. Reliquidation of entries.
Sec. 208. Recordkeeping requirements.
Sec. 209. Enforcement relating to trade in textile or apparel goods.
Sec. 210. Regulations.

TITLE III--RELIEF FROM IMPORTS

Sec. 301. Definitions.

Subtitle A--Relief From Imports Benefiting From the Agreement

Sec. 311. Commencing of action for relief.
Sec. 312. Commission action on petition.
Sec. 313. Provision of relief.
Sec. 314. Termination of relief authority.
Sec. 315. Compensation authority.
Sec. 316. Confidential business information.

Subtitle B--Textile and Apparel Safeguard Measures

Sec. 321. Commencement of action for relief.
Sec. 322. Determination and provision of relief.
Sec. 323. Period of relief.
Sec. 324. Articles exempt from relief.
Sec. 325. Rate after termination of import relief.
Sec. 326. Termination of relief authority.
Sec. 327. Compensation authority.
Sec. 328. Confidential business information.

Subtitle C--Cases Under Title II of the Trade Act of 1974

Sec. 331. Findings and action on goods of CAFTA-DR countries.

TITLE IV--MISCELLANEOUS

Sec. 401. Eligible products.
Sec. 402. Modifications to the Caribbean Basin Economic Recovery Act.
Sec. 403. Periodic reports and meetings on labor obligations and labor
capacity-building provisions.

SEC. 2. PURPOSES.

The purposes of this Act are--
(1) to approve and implement the Free Trade Agreement
between the United States, Costa Rica, the Dominican
Republic, El Salvador, Guatemala, Honduras, and Nicaragua
entered into under the authority of section 2103(b) of the
Bipartisan Trade Promotion Authority Act of 2002 (19 U.S.C.
3803(b));
(2) to strengthen and develop economic relations between
the United States, Costa Rica, the Dominican Republic, El
Salvador, Guatemala, Honduras, and Nicaragua for their mutual
benefit;
(3) to establish free trade between the United States,
Costa Rica, the Dominican Republic, El Salvador, Guatemala,
Honduras, and Nicaragua through the reduction and elimination
of barriers to trade in goods and services and to investment;
and
(4) to lay the foundation for further cooperation to expand
and enhance the benefits of the Agreement.

SEC. 3. DEFINITIONS.

In this Act:
(1) Agreement.--The term ``Agreement'' means the Dominican
Republic-Central America-United States Free Trade Agreement
approved by the Congress under section 101(a)(1).
(2) CAFTA-DR country.--Except as provided in section 203,
the term ``CAFTA-DR country'' means--
(A) Costa Rica, for such time as the Agreement is in force
between the United States and Costa Rica;
(B) the Dominican Republic, for such time as the Agreement
is in force between the United States and the Dominican
Republic;
(C) El Salvador, for such time as the Agreement is in force
between the United States and El Salvador;
(D) Guatemala, for such time as the Agreement is in force
between the United States and Guatemala;

[[Page S7756]]

(E) Honduras, for such time as the Agreement is in force
between the United States and Honduras; and
(F) Nicaragua, for such time as the Agreement is in force
between the United States and Nicaragua.
(3) Commission.--The term ``Commission'' means the United
States International Trade Commission.
(4) HTS.--The term ``HTS'' means the Harmonized Tariff
Schedule of the United States.
(5) Textile or apparel good.--The term ``textile or apparel
good'' means a good listed in the Annex to the Agreement on
Textiles and Clothing referred to in section 101(d)(4) of the
Uruguay Round Agreements Act (19 U.S.C. 3511(d)(4)), other
than a good listed in Annex 3.29 of the Agreement.

TITLE I--APPROVAL OF, AND GENERAL PROVISIONS RELATING TO, THE AGREEMENT

SEC. 101. APPROVAL AND ENTRY INTO FORCE OF THE AGREEMENT.

(a) Approval of Agreement and Statement of Administrative
Action.--Pursuant to section 2105 of the Bipartisan Trade
Promotion Authority Act of 2002 (19 U.S.C. 3805) and section
151 of the Trade Act of 1974 (19 U.S.C. 2191), the Congress
approves--
(1) the Dominican Republic-Central America-United States
Free Trade Agreement entered into on August 5, 2004, with the
Governments of Costa Rica, the Dominican Republic, El
Salvador, Guatemala, Honduras, and Nicaragua, and submitted
to the Congress on __, 2005; and
(2) the statement of administrative action proposed to
implement the Agreement that was submitted to the Congress on
__, 2005.
(b) Conditions for Entry Into Force of the Agreement.--At
such time as the President determines that countries listed
in subsection (a)(1) have taken measures necessary to comply
with the provisions of the Agreement that are to take effect
on the date on which the Agreement enters into force, the
President is authorized to provide for the Agreement to enter
into force with respect to those countries that provide for
the Agreement to enter into force for them.

SEC. 102. RELATIONSHIP OF THE AGREEMENT TO UNITED STATES AND
STATE LAW.

(a) Relationship of Agreement to United States Law.--
(1) United states law to prevail in conflict.--No provision
of the Agreement, nor the application of any such provision
to any person or circumstance, which is inconsistent with any
law of the United States shall have effect.
(2) Construction.--Nothing in this Act shall be construed--
(A) to amend or modify any law of the United States, or
(B) to limit any authority conferred under any law of the
United States,
unless specifically provided for in this Act.
(b) Relationship of Agreement to State Law.--
(1) Legal challenge.--No State law, or the application
thereof, may be declared invalid as to any person or
circumstance on the ground that the provision or application
is inconsistent with the Agreement, except in an action
brought by the United States for the purpose of declaring
such law or application invalid.
(2) Definition of state law.--For purposes of this
subsection, the term ``State law'' includes--
(A) any law of a political subdivision of a State; and
(B) any State law regulating or taxing the business of
insurance.
(c) Effect of Agreement With Respect to Private Remedies.--
No person other than the United States--
(1) shall have any cause of action or defense under the
Agreement or by virtue of congressional approval thereof; or
(2) may challenge, in any action brought under any
provision of law, any action or inaction by any department,
agency, or other instrumentality of the United States, any
State, or any political subdivision of a State, on the ground
that such action or inaction is inconsistent with the
Agreement.

SEC. 103. IMPLEMENTING ACTIONS IN ANTICIPATION OF ENTRY INTO
FORCE AND INITIAL REGULATIONS.

(a) Implementing Actions.--
(1) Proclamation authority.--After the date of the
enactment of this Act--
(A) the President may proclaim such actions, and
(B) other appropriate officers of the United States
Government may issue such regulations,

as may be necessary to ensure that any provision of this Act,
or amendment made by this Act, that takes effect on the date
the Agreement enters into force is appropriately implemented
on such date, but no such proclamation or regulation may have
an effective date earlier than the date the Agreement enters
into force.
(2) Effective date of certain proclaimed actions.--Any
action proclaimed by the President under the authority of
this Act that is not subject to the consultation and layover
provisions under section 104 may not take effect before the
15th day after the date on which the text of the proclamation
is published in the Federal Register.
(3) Waiver of 15-day restriction.--The 15-day restriction
contained in paragraph (2) on the taking effect of proclaimed
actions is waived to the extent that the application of such
restriction would prevent the taking effect on the date the
Agreement enters into force of any action proclaimed under
this section.
(b) Initial Regulations.--Initial regulations necessary or
appropriate to carry out the actions required by or
authorized under this Act or proposed in the statement of
administrative action submitted under section 101(a)(2) to
implement the Agreement shall, to the maximum extent
feasible, be issued within 1 year after the date on which the
Agreement enters into force. In the case of any implementing
action that takes effect on a date after the date on which
the Agreement enters into force, initial regulations to carry
out that action shall, to the maximum extent feasible, be
issued within 1 year after such effective date.

SEC. 104. CONSULTATION AND LAYOVER PROVISIONS FOR, AND
EFFECTIVE DATE OF, PROCLAIMED ACTIONS.

If a provision of this Act provides that the implementation
of an action by the President by proclamation is subject to
the consultation and layover requirements of this section,
such action may be proclaimed only if--
(1) the President has obtained advice regarding the
proposed action from--
(A) the appropriate advisory committees established under
section 135 of the Trade Act of 1974 (19 U.S.C. 2155); and
(B) the Commission;
(2) the President has submitted to the Committee on Finance
of the Senate and the Committee on Ways and Means of the
House of Representatives a report that sets forth--
(A) the action proposed to be proclaimed and the reasons
therefor; and
(B) the advice obtained under paragraph (1);
(3) a period of 60 calendar days, beginning on the first
day on which the requirements set forth in paragraphs (1) and
(2) have been met has expired; and
(4) the President has consulted with such Committees
regarding the proposed action during the period referred to
in paragraph (3).

SEC. 105. ADMINISTRATION OF DISPUTE SETTLEMENT PROCEEDINGS.

(a) Establishment or Designation of Office.--The President
is authorized to establish or designate within the Department
of Commerce an office that shall be responsible for providing
administrative assistance to panels established under chapter
20 of the Agreement. The office may not be considered to be
an agency for purposes of section 552 of title 5, United
States Code.
(b) Authorization of Appropriations.--There are authorized
to be appropriated for each fiscal year after fiscal year
2005 to the Department of Commerce such sums as may be
necessary for the establishment and operations of the office
established or designated under subsection (a) and for the
payment of the United States share of the expenses of panels
established under chapter 20 of the Agreement.

SEC. 106. ARBITRATION OF CLAIMS.

The United States is authorized to resolve any claim
against the United States covered by article 10.16.1(a)(i)(C)
or article 10.16.1(b)(i)(C) of the Agreement, pursuant to the
Investor-State Dispute Settlement procedures set forth in
section B of chapter 10 of the Agreement.

SEC. 107. EFFECTIVE DATES; EFFECT OF TERMINATION.

(a) Effective Dates.--Except as provided in subsection (b),
the provisions of this Act and the amendments made by this
Act take effect on the date the Agreement enters into force.
(b) Exceptions.--Sections 1 through 3 and this title take
effect on the date of the enactment of this Act.
(c) Termination of CAFTA-DR Status.--During any period in
which a country ceases to be a CAFTA-DR country, the
provisions of this Act (other than this subsection) and the
amendments made by this Act shall cease to have effect with
respect to that country.
(d) Termination of the Agreement.--On the date on which the
Agreement ceases to be in force with respect to the United
States, the provisions of this Act (other than this
subsection) and the amendments made by this Act shall cease
to have effect.

TITLE II--CUSTOMS PROVISIONS

SEC. 201. TARIFF MODIFICATIONS.

(a) Tariff Modifications Provided for in the Agreement.--
(1) Proclamation authority.--The President may proclaim--
(A) such modifications or continuation of any duty,
(B) such continuation of duty-free or excise treatment, or
(C) such additional duties,

as the President determines to be necessary or appropriate to
carry out or apply articles 3.3, 3.5, 3.6, 3.21, 3.26, 3.27,
and 3.28, and Annexes 3.3, 3.27, and 3.28 of the Agreement.
(2) Effect on gsp status.--Notwithstanding section
502(a)(1) of the Trade Act of 1974 (19 U.S.C. 2462(a)(1)),
the President shall terminate the designation of each CAFTA-
DR country as a beneficiary developing country for purposes
of title V of the Trade Act of 1974 on the date the Agreement
enters into force with respect to that country.
(3) Effect on cbera status.--
(A) In general.--Notwithstanding section 212(a) of the
Caribbean Basin Economic Recovery Act (19 U.S.C. 2702(a)),
the President shall terminate the designation of each CAFTA-
DR country as a beneficiary country for purposes of that Act
on the date the Agreement enters into force with respect to
that country.

[[Page S7757]]

(B) Exception.--Notwithstanding subparagraph (A), each such
country shall be considered a beneficiary country under
section 212(a) of the Caribbean Basin Economic Recovery Act,
for purposes of--
(i) sections 771(7)(G)(ii)(III) and 771(7)(H) of the Tariff
Act of 1930 (19 U.S.C. 1677(7)(G)(ii)(III) and 1677(7)(H));
(ii) the duty-free treatment provided under paragraph 12 of
Appendix I of the General Notes to the Schedule of the United
States to Annex 3.3 of the Agreement; and
(iii) section 274(h)(6)(B) of the Internal Revenue Code of
1986.
(b) Other Tariff Modifications.--Subject to the
consultation and layover provisions of section 104, the
President may proclaim--
(1) such modifications or continuation of any duty,
(2) such modifications as the United States may agree to
with a CAFTA-DR country regarding the staging of any duty
treatment set forth in Annex 3.3 of the Agreement,
(3) such continuation of duty-free or excise treatment, or
(4) such additional duties,

as the President determines to be necessary or appropriate to
maintain the general level of reciprocal and mutually
advantageous concessions provided for by the Agreement.
(c) Conversion to Ad Valorem Rates.--For purposes of
subsections (a) and (b), with respect to any good for which
the base rate in the Schedule of the United States to Annex
3.3 of the Agreement is a specific or compound rate of duty,
the President may substitute for the base rate an ad valorem
rate that the President determines to be equivalent to the
base rate.

SEC. 202. ADDITIONAL DUTIES ON CERTAIN AGRICULTURAL GOODS.

(a) General Provisions.--
(1) Applicability of subsection.--This subsection applies
to additional duties assessed under subsection (b).
(2) Applicable ntr (mfn) rate of duty.--For purposes of
subsection (b), the term ``applicable NTR (MFN) rate of
duty'' means, with respect to a safeguard good, a rate of
duty that is the lesser of--
(A) the column 1 general rate of duty that would, at the
time the additional duty is imposed under subsection (b),
apply to a good classifiable in the same 8-digit subheading
of the HTS as the safeguard good; or
(B) the column 1 general rate of duty that would, on the
day before the date on which the Agreement enters into force,
apply to a good classifiable in the same 8-digit subheading
of the HTS as the safeguard good.
(3) Schedule rate of duty.--For purposes of subsection (b),
the term ``schedule rate of duty'' means, with respect to a
safeguard good, the rate of duty for that good that is set
out in the Schedule of the United States to Annex 3.3 of the
Agreement.
(4) Safeguard good.--In this section, the term ``safeguard
good'' means a good--
(A) that is included in the Schedule of the United States
to Annex 3.15 of the Agreement;
(B) that qualifies as an originating good under section
203, except that operations performed in or material obtained
from the United States shall be considered as if the
operations were performed in, and the material was obtained
from, a country that is not a party to the Agreement; and
(C) for which a claim for preferential tariff treatment
under the Agreement has been made.
(5) Exceptions.--No additional duty shall be assessed on a
good under subsection (b) if, at the time of entry, the good
is subject to import relief under--
(A) subtitle A of title III of this Act; or
(B) chapter 1 of title II of the Trade Act of 1974 (19
U.S.C. 2251 et seq.).
(6) Termination.--The assessment of an additional duty on a
good under subsection (b) shall cease to apply to that good
on the date on which duty-free treatment must be provided to
that good under the Schedule of the United States to Annex
3.3 of the Agreement.
(7) Notice.--Not later than 60 days after the Secretary of
the Treasury first assesses an additional duty in a calendar
year on a good under subsection (b), the Secretary shall
notify the country whose good is subject to the additional
duty in writing of such action and shall provide to that
country data supporting the assessment of the additional
duty.
(b) Additional Duties on Safeguard Goods.--
(1) In general.--In addition to any duty proclaimed under
subsection (a) or (b) of section 201, and subject to
subsection (a), the Secretary of the Treasury shall assess a
duty, in the amount determined under paragraph (2), on a
safeguard good of a CAFTA-DR country imported into the United
States in a calendar year if the Secretary determines that,
prior to such importation, the total volume of that safeguard
good of such country that is imported into the United States
in that calendar year exceeds 130 percent of the volume that
is set out for that safeguard good in the corresponding year
in the table for that country contained in Appendix I of the
General Notes to the Schedule of the United States to Annex
3.3 of the Agreement. For purposes of this subsection, year 1
in that table corresponds to the calendar year in which the
Agreement enters into force.
(2) Calculation of additional duty.--The additional duty on
a safeguard good under this subsection shall be--
(A) in the case of a good classified under subheading
1202.10.80, 1202.20.80, 2008.11.15, 2008.11.35, or 2008.11.60
of the HTS--
(i) in years 1 through 5, an amount equal to 100 percent of
the excess of the applicable NTR (MFN) rate of duty over the
schedule rate of duty;
(ii) in years 6 through 10, an amount equal to 75 percent
of the excess of the applicable NTR (MFN) rate of duty over
the schedule rate of duty; and
(iii) in years 11 through 14, an amount equal to 50 percent
of the excess of the applicable NTR (MFN) rate of duty over
the schedule rate of duty; and
(B) in the case of any other safeguard good--
(i) in years 1 through 14, an amount equal to 100 percent
of the excess of the applicable NTR (MFN) rate of duty over
the schedule rate of duty;
(ii) in years 15 through 17, an amount equal to 75 percent
of the excess of the applicable NTR (MFN) rate of duty over
the schedule rate of duty; and
(iii) in years 18 and 19, an amount equal to 50 percent of
the excess of the applicable NTR (MFN) rate of duty over the
schedule rate of duty.

SEC. 203. RULES OF ORIGIN.

(a) Application and Interpretation.--In this section:
(1) Tariff classification.--The basis for any tariff
classification is the HTS.
(2) Reference to hts.--Whenever in this section there is a
reference to a chapter, heading, or subheading, such
reference shall be a reference to a chapter, heading, or
subheading of the HTS.
(3) Cost or value.--Any cost or value referred to in this
section shall be recorded and maintained in accordance with
the generally accepted accounting principles applicable in
the territory of the country in which the good is produced
(whether the United States or another CAFTA-DR country).
(b) Originating Goods.--For purposes of this Act and for
purposes of implementing the preferential tariff treatment
provided for under the Agreement, except as otherwise
provided in this section, a good is an originating good if--
(1) the good is a good wholly obtained or produced entirely
in the territory of one or more of the CAFTA-DR countries;
(2) the good--
(A) is produced entirely in the territory of one or more of
the CAFTA-DR countries, and--
(i) each of the nonoriginating materials used in the
production of the good undergoes an applicable change in
tariff classification specified in Annex 4.1 of the
Agreement; or
(ii) the good otherwise satisfies any applicable regional
value-content or other requirements specified in Annex 4.1 of
the Agreement; and
(B) satisfies all other applicable requirements of this
section; or
(3) the good is produced entirely in the territory of one
or more of the CAFTA-DR countries, exclusively from materials
described in paragraph (1) or (2).
(c) Regional Value-Content.--
(1) In general.--For purposes of subsection (b)(2), the
regional value-content of a good referred to in Annex 4.1 of
the Agreement, except for goods to which paragraph (4)
applies, shall be calculated by the importer, exporter, or
producer of the good, on the basis of the build-down method
described in paragraph (2) or the build-up method described
in paragraph (3).
(2) Build-down method.--
(A) In general.--The regional value-content of a good may
be calculated on the basis of the following build-down
method:

av-vnm

rvc = -------- 100

(B) Definitions.--In subparagraph (A):
(i) RVC.--The term ``RVC'' means the regional value-content
of the good, expressed as a percentage.
(ii) AV.--The term ``AV'' means the adjusted value of the
good.
(iii) VNM.--The term ``VNM'' means the value of
nonoriginating materials that are acquired and used by the
producer in the production of the good, but does not include
the value of a material that is self-produced.
(3) Build-up method.--
(A) In general.--The regional value-content of a good may
be calculated on the basis of the following build-up method:

vom

rvc = -------- 100

(B) Definitions.--In subparagraph (A):
(i) RVC.--The term ``RVC'' means the regional value-content
of the good, expressed as a percentage.
(ii) AV.--The term ``AV'' means the adjusted value of the
good.
(iii) VOM.--The term ``VOM'' means the value of originating
materials that are acquired or self-produced, and used by the
producer in the production of the good.
(4) Special rule for certain automotive goods.--
(A) In general.--For purposes of subsection (b)(2), the
regional value-content of an automotive good referred to in
Annex 4.1 of the Agreement may be calculated by the importer,
exporter, or producer of the good, on the basis of the
following net cost method:

[[Page S7758]]

nc-vnm

rvc = -------- 100

(B) Definitions.--In subparagraph (A):
(i) Automotive good.--The term ``automotive good'' means a
good provided for in any of subheadings 8407.31 through
8407.34, subheading 8408.20, heading 8409, or in any of
headings 8701 through 8708.
(ii) RVC.--The term ``RVC'' means the regional value-
content of the automotive good, expressed as a percentage.
(iii) NC.--The term ``NC'' means the net cost of the
automotive good.
(iv) VNM.--The term ``VNM'' means the value of
nonoriginating materials that are acquired and used by the
producer in the production of the automotive good, but does
not include the value of a material that is self-produced.
(C) Motor vehicles.--
(i) Basis of calculation.--For purposes of determining the
regional value-content under subparagraph (A) for an
automotive good that is a motor vehicle provided for in any
of headings 8701 through 8705, an importer, exporter, or
producer may average the amounts calculated under the formula
contained in subparagraph (A), over the producer's fiscal
year--

(I) with respect to all motor vehicles in any 1 of the
categories described in clause (ii); or
(II) with respect to all motor vehicles in any such
category that are exported to the territory of one or more of
the CAFTA-DR countries.

(ii) Categories.--A category is described in this clause if
it--

(I) is the same model line of motor vehicles, is in the
same class of vehicles, and is produced in the same plant in
the territory of a CAFTA-DR country, as the good described in
clause (i) for which regional value-content is being
calculated;
(II) is the same class of motor vehicles, and is produced
in the same plant in the territory of a CAFTA-DR country, as
the good described in clause (i) for which regional value-
content is being calculated; or
(III) is the same model line of motor vehicles produced in
the territory of a CAFTA-DR country as the good described in
clause (i) for which regional value-content is being
calculated.

(D) Other automotive goods.--For purposes of determining
the regional value-content under subparagraph (A) for
automotive goods provided for in any of subheadings 8407.31
through 8407.34, in subheading 8408.20, or in heading 8409,
8706, 8707, or 8708, that are produced in the same plant, an
importer, exporter, or producer may--
(i) average the amounts calculated under the formula
contained in subparagraph (A) over--

(I) the fiscal year of the motor vehicle producer to whom
the automotive goods are sold,
(II) any quarter or month, or
(III) its own fiscal year,

if the goods were produced during the fiscal year, quarter,
or month that is the basis for the calculation;
(ii) determine the average referred to in clause (i)
separately for such goods sold to 1 or more motor vehicle
producers; or
(iii) make a separate determination under clause (i) or
(ii) for automotive goods that are exported to the territory
of one or more of the CAFTA-DR countries.
(E) Calculating net cost.--The importer, exporter, or
producer shall, consistent with the provisions regarding
allocation of costs set out in generally accepted accounting
principles, determine the net cost of an automotive good
under subparagraph (B) by--
(i) calculating the total cost incurred with respect to all
goods produced by the producer of the automotive good,
subtracting any sales promotion, marketing and after-sales
service costs, royalties, shipping and packing costs, and
nonallowable interest costs that are included in the total
cost of all such goods, and then reasonably allocating the
resulting net cost of those goods to the automotive good;
(ii) calculating the total cost incurred with respect to
all goods produced by that producer, reasonably allocating
the total cost to the automotive good, and then subtracting
any sales promotion, marketing and after-sales service costs,
royalties, shipping and packing costs, and nonallowable
interest costs that are included in the portion of the total
cost allocated to the automotive good; or
(iii) reasonably allocating each cost that forms part of
the total cost incurred with respect to the automotive good
so that the aggregate of all such costs does not include any
sales promotion, marketing and after-sales service costs,
royalties, shipping and packing costs, or nonallowable
interest costs.
(d) Value of Materials.--
(1) In general.--For the purpose of calculating the
regional value-content of a good under subsection (c), and
for purposes of applying the de minimis rules under
subsection (f), the value of a material is--
(A) in the case of a material that is imported by the
producer of the good, the adjusted value of the material;
(B) in the case of a material acquired in the territory in
which the good is produced, the value, determined in
accordance with Articles 1 through 8, Article 15, and the
corresponding interpretive notes of the Agreement on
Implementation of Article VII of the General Agreement on
Tariffs and Trade 1994 referred to in section 101(d)(8) of
the Uruguay Round Agreements Act, as set forth in regulations
promulgated by the Secretary of the Treasury providing for
the application of such Articles in the absence of an
importation; or
(C) in the case of a material that is self-produced, the
sum of--
(i) all expenses incurred in the production of the
material, including general expenses; and
(ii) an amount for profit equivalent to the profit added in
the normal course of trade.
(2) Further adjustments to the value of materials.--
(A) Originating material.--The following expenses, if not
included in the value of an originating material calculated
under paragraph (1), may be added to the value of the
originating material:
(i) The costs of freight, insurance, packing, and all other
costs incurred in transporting the material within or between
the territory of one or more of the CAFTA-DR countries to the
location of the producer.
(ii) Duties, taxes, and customs brokerage fees on the
material paid in the territory of one or more of the CAFTA-DR
countries, other than duties or taxes that are waived,
refunded, refundable, or otherwise recoverable, including
credit against duty or tax paid or payable.
(iii) The cost of waste and spoilage resulting from the use
of the material in the production of the good, less the value
of renewable scrap or byproducts.
(B) Nonoriginating material.--The following expenses, if
included in the value of a nonoriginating material calculated
under paragraph (1), may be deducted from the value of the
nonoriginating material:
(i) The costs of freight, insurance, packing, and all other
costs incurred in transporting the material within or between
the territory of one or more of the CAFTA-DR countries to the
location of the producer.
(ii) Duties, taxes, and customs brokerage fees on the
material paid in the territory of one or more of the CAFTA-DR
countries, other than duties or taxes that are waived,
refunded, refundable, or otherwise recoverable, including
credit against duty or tax paid or payable.
(iii) The cost of waste and spoilage resulting from the use
of the material in the production of the good, less the value
of renewable scrap or byproducts.
(iv) The cost of originating materials used in the
production of the nonoriginating material in the territory of
one or more of the CAFTA-DR countries.
(e) Accumulation.--
(1) Originating materials used in production of goods of
another country.--Originating materials from the territory of
one or more of the CAFTA-DR countries that are used in the
production of a good in the territory of another CAFTA-DR
country shall be considered to originate in the territory of
that other country.
(2) Multiple procedures.--A good that is produced in the
territory of one or more of the CAFTA-DR countries by 1 or
more producers is an originating good if the good satisfies
the requirements of subsection (b) and all other applicable
requirements of this section.
(f) De Minimis Amounts of Nonoriginating Materials.--
(1) In general.--Except as provided in paragraphs (2) and
(3), a good that does not undergo a change in tariff
classification pursuant to Annex 4.1 of the Agreement is an
originating good if--
(A) the value of all nonoriginating materials that--
(i) are used in the production of the good, and
(ii) do not undergo the applicable change in tariff
classification (set out in Annex 4.1 of the Agreement),

does not exceed 10 percent of the adjusted value of the good;
(B) the good meets all other applicable requirements of
this section; and
(C) the value of such nonoriginating materials is included
in the value of nonoriginating materials for any applicable
regional value-content requirement for the good.
(2) Exceptions.--Paragraph (1) does not apply to the
following:
(A) A nonoriginating material provided for in chapter 4, or
a nonoriginating dairy preparation containing over 10 percent
by weight of milk solids provided for in subheading 1901.90
or 2106.90, that is used in the production of a good provided
for in chapter 4.
(B) A nonoriginating material provided for in chapter 4, or
a nonoriginating dairy preparation containing over 10 percent
by weight of milk solids provided for in subheading 1901.90,
that is used in the production of the following goods:
(i) Infant preparations containing over 10 percent by
weight of milk solids provided for in subheading 1901.10.
(ii) Mixes and doughs, containing over 25 percent by weight
of butterfat, not put up for retail sale, provided for in
subheading 1901.20.
(iii) Dairy preparations containing over 10 percent by
weight of milk solids provided for in subheading 1901.90 or
2106.90.
(iv) Goods provided for in heading 2105.
(v) Beverages containing milk provided for in subheading
2202.90.
(vi) Animal feeds containing over 10 percent by weight of
milk solids provided for in subheading 2309.90.
(C) A nonoriginating material provided for in heading 0805,
or any of subheadings 2009.11

[[Page S7759]]

through 2009.39, that is used in the production of a good
provided for in any of subheadings 2009.11 through 2009.39,
or in fruit or vegetable juice of any single fruit or
vegetable, fortified with minerals or vitamins, concentrated
or unconcentrated, provided for in subheading 2106.90 or
2202.90.
(D) A nonoriginating material provided for in heading 0901
or 2101 that is used in the production of a good provided for
in heading 0901 or 2101.
(E) A nonoriginating material provided for in heading 1006
that is used in the production of a good provided for in
heading 1102 or 1103 or subheading 1904.90.
(F) A nonoriginating material provided for in chapter 15
that is used in the production of a good provided for in
chapter 15.
(G) A nonoriginating material provided for in heading 1701
that is used in the production of a good provided for in any
of headings 1701 through 1703.
(H) A nonoriginating material provided for in chapter 17
that is used in the production of a good provided for in
subheading 1806.10.
(I) Except as provided in subparagraphs (A) through (H) and
Annex 4.1 of the Agreement, a nonoriginating material used in
the production of a good provided for in any of chapters 1
through 24, unless the nonoriginating material is provided
for in a different subheading than the good for which origin
is being determined under this section.
(3) Textile or apparel goods.--
(A) In general.--Except as provided in subparagraph (B), a
textile or apparel good that is not an originating good
because certain fibers or yarns used in the production of the
component of the good that determines the tariff
classification of the good do not undergo an applicable
change in tariff classification, set out in Annex 4.1 of the
Agreement, shall be considered to be an originating good if--
(i) the total weight of all such fibers or yarns in that
component is not more than 10 percent of the total weight of
that component; or
(ii) the yarns are those described in section
204(b)(3)(B)(vi)(IV) of the Andean Trade Preference Act (19
U.S.C. 3203(b)(3)(B)(vi)(IV))(as in effect on the date of the
enactment of this Act).
(B) Certain textile or apparel goods.--A textile or apparel
good containing elastomeric yarns in the component of the
good that determines the tariff classification of the good
shall be considered to be an originating good only if such
yarns are wholly formed in the territory of a CAFTA-DR
country.
(C) Yarn, fabric, or fiber.--For purposes of this
paragraph, in the case of a good that is a yarn, fabric, or
fiber, the term ``component of the good that determines the
tariff classification of the good'' means all of the fibers
in the good.
(g) Fungible Goods and Materials.--
(1) In general.--
(A) Claim for preferential tariff treatment.--A person
claiming that a fungible good or fungible material is an
originating good may base the claim either on the physical
segregation of the fungible good or fungible material or by
using an inventory management method with respect to the
fungible good or fungible material.
(B) Inventory management method.--In this subsection, the
term ``inventory management method'' means--
(i) averaging;
(ii) ``last-in, first-out'';
(iii) ``first-in, first-out''; or
(iv) any other method--

(I) recognized in the generally accepted accounting
principles of the CAFTA-DR country in which the production is
performed; or
(II) otherwise accepted by that country.

(2) Election of inventory method.--A person selecting an
inventory management method under paragraph (1) for a
particular fungible good or fungible material shall continue
to use that method for that fungible good or fungible
material throughout the fiscal year of that person.
(h) Accessories, Spare Parts, or Tools.--
(1) In general.--Subject to paragraphs (2) and (3),
accessories, spare parts, or tools delivered with a good that
form part of the good's standard accessories, spare parts, or
tools shall--
(A) be treated as originating goods if the good is an
originating good; and
(B) be disregarded in determining whether all the
nonoriginating materials used in the production of the good
undergo the applicable change in tariff classification set
out in Annex 4.1 of the Agreement.
(2) Conditions.--Paragraph (1) shall apply only if--
(A) the accessories, spare parts, or tools are classified
with and not invoiced separately from the good, regardless of
whether they appear specified or separately identified in the
invoice for the good; and
(B) the quantities and value of the accessories, spare
parts, or tools are customary for the good.
(3) Regional value-content.--If the good is subject to a
regional value-content requirement, the value of the
accessories, spare parts, or tools shall be taken into
account as originating or nonoriginating materials, as the
case may be, in calculating the regional value-content of the
good.
(i) Packaging Materials and Containers for Retail Sale.--
Packaging materials and containers in which a good is
packaged for retail sale, if classified with the good, shall
be disregarded in determining whether all the nonoriginating
materials used in the production of the good undergo the
applicable change in tariff classification set out in Annex
4.1 of the Agreement, and, if the good is subject to a
regional value-content requirement, the value of such
packaging materials and containers shall be taken into
account as originating or nonoriginating materials, as the
case may be, in calculating the regional value-content of the
good.
(j) Packing Materials and Containers for Shipment.--Packing
materials and containers for shipment shall be disregarded in
determining whether a good is an originating good.
(k) Indirect Materials.--An indirect material shall be
treated as an originating material without regard to where it
is produced.
(l) Transit and Transhipment.--A good that has undergone
production necessary to qualify as an originating good under
subsection (b) shall not be considered to be an originating
good if, subsequent to that production, the good--
(1) undergoes further production or any other operation
outside the territories of the CAFTA-DR countries, other than
unloading, reloading, or any other operation necessary to
preserve the good in good condition or to transport the good
to the territory of a CAFTA-DR country; or
(2) does not remain under the control of customs
authorities in the territory of a country other than a CAFTA-
DR country.
(m) Goods Classifiable as Goods Put Up in Sets.--
Notwithstanding the rules set forth in Annex 4.1 of the
Agreement, goods classifiable as goods put up in sets for
retail sale as provided for in General Rule of Interpretation
3 of the HTS shall not be considered to be originating goods
unless--
(1) each of the goods in the set is an originating good; or
(2) the total value of the nonoriginating goods in the set
does not exceed--
(A) in the case of textile or apparel goods, 10 percent of
the adjusted value of the set; or
(B) in the case of a good, other than a textile or apparel
good, 15 percent of the adjusted value of the set.
(n) Definitions.--In this section:
(1) Adjusted value.--The term ``adjusted value'' means the
value determined in accordance with Articles 1 through 8,
Article 15, and the corresponding interpretive notes of the
Agreement on Implementation of Article VII of the General
Agreement on Tariffs and Trade 1994 referred to in section
101(d)(8) of the Uruguay Round Agreements Act, adjusted, if
necessary, to exclude any costs, charges, or expenses
incurred for transportation, insurance, and related services
incident to the international shipment of the merchandise
from the country of exportation to the place of importation.
(2) CAFTA-DR country.--The term ``CAFTA-DR country''
means--
(A) the United States; and
(B) Costa Rica, the Dominican Republic, El Salvador,
Guatemala, Honduras, or Nicaragua, for such time as the
Agreement is in force between the United States and that
country.
(3) Class of motor vehicles.--The term ``class of motor
vehicles'' means any one of the following categories of motor
vehicles:
(A) Motor vehicles provided for in subheading 8701.20,
8704.10, 8704.22, 8704.23, 8704.32, or 8704.90, or heading
8705 or 8706, or motor vehicles for the transport of 16 or
more persons provided for in subheading 8702.10 or 8702.90.
(B) Motor vehicles provided for in subheading 8701.10 or
any of subheadings 8701.30 through 8701.90.
(C) Motor vehicles for the transport of 15 or fewer persons
provided for in subheading 8702.10 or 8702.90, or motor
vehicles provided for in subheading 8704.21 or 8704.31.
(D) Motor vehicles provided for in any of subheadings
8703.21 through 8703.90.
(4) Fungible good or fungible material.--The term
``fungible good'' or ``fungible material'' means a good or
material, as the case may be, that is interchangeable with
another good or material for commercial purposes and the
properties of which are essentially identical to such other
good or material.
(5) Generally accepted accounting principles.--The term
``generally accepted accounting principles'' means the
recognized consensus or substantial authoritative support in
the territory of a CAFTA-DR country with respect to the
recording of revenues, expenses, costs, assets, and
liabilities, the disclosure of information, and the
preparation of financial statements. The principles may
encompass broad guidelines of general application as well as
detailed standards, practices, and procedures.
(6) Goods wholly obtained or produced entirely in the
territory of one or more of the cafta-dr countries.--The term
``goods wholly obtained or produced entirely in the territory
of one or more of the CAFTA-DR countries'' means--
(A) plants and plant products harvested or gathered in the
territory of one or more of the CAFTA-DR countries;
(B) live animals born and raised in the territory of one or
more of the CAFTA-DR countries;
(C) goods obtained in the territory of one or more of the
CAFTA-DR countries from live animals;
(D) goods obtained from hunting, trapping, fishing or
aquaculture conducted in the territory of one or more of the
CAFTA-DR countries;
(E) minerals and other natural resources not included in
subparagraphs (A) through (D) that are extracted or taken in
the territory of one or more of the CAFTA-DR countries;

[[Page S7760]]

(F) fish, shellfish, and other marine life taken from the
sea, seabed, or subsoil outside the territory of one or more
of the CAFTA-DR countries by vessels registered or recorded
with a CAFTA-DR country and flying the flag of that country;
(G) goods produced on board factory ships from the goods
referred to in subparagraph (F), if such factory ships are
registered or recorded with that CAFTA-DR country and fly the
flag of that country;
(H) goods taken by a CAFTA-DR country or a person of a
CAFTA-DR country from the seabed or subsoil outside
territorial waters, if a CAFTA-DR country has rights to
exploit such seabed or subsoil;
(I) goods taken from outer space, if the goods are obtained
by a CAFTA-DR country or a person of a CAFTA-DR country and
not processed in the territory of a country other than a
CAFTA-DR country;
(J) waste and scrap derived from--
(i) manufacturing or processing operations in the territory
of one or more of the CAFTA-DR countries; or
(ii) used goods collected in the territory of one or more
of the CAFTA-DR countries, if such goods are fit only for the
recovery of raw materials;
(K) recovered goods derived in the territory of one or more
of the CAFTA-DR countries from used goods, and used in the
territory of a CAFTA-DR country in the production of
remanufactured goods; and
(L) goods produced in the territory of one or more of the
CAFTA-DR countries exclusively from--
(i) goods referred to in any of subparagraphs (A) through
(J), or
(ii) the derivatives of goods referred to in clause (i),
at any stage of production.
(7) Identical goods.--The term ``identical goods'' means
identical goods as defined in the Agreement on Implementation
of Article VII of the General Agreement on Tariffs and Trade
1994 referred to in section 101(d)(8) of the Uruguay Round
Agreements Act;
(8) Indirect material.--The term ``indirect material''
means a good used in the production, testing, or inspection
of a good but not physically incorporated into the good, or a
good used in the maintenance of buildings or the operation of
equipment associated with the production of a good,
including--
(A) fuel and energy;
(B) tools, dies, and molds;
(C) spare parts and materials used in the maintenance of
equipment or buildings;
(D) lubricants, greases, compounding materials, and other
materials used in production or used to operate equipment or
buildings;
(E) gloves, glasses, footwear, clothing, safety equipment,
and supplies;
(F) equipment, devices, and supplies used for testing or
inspecting the good;
(G) catalysts and solvents; and
(H) any other goods that are not incorporated into the good
but the use of which in the production of the good can
reasonably be demonstrated to be a part of that production.
(9) Material.--The term ``material'' means a good that is
used in the production of another good, including a part or
an ingredient.
(10) Material that is self-produced.--The term ``material
that is self-produced'' means an originating material that is
produced by a producer of a good and used in the production
of that good.
(11) Model line.--The term ``model line'' means a group of
motor vehicles having the same platform or model name.
(12) Net cost.--The term ``net cost'' means total cost
minus sales promotion, marketing, and after-sales service
costs, royalties, shipping and packing costs, and non-
allowable interest costs that are included in the total cost.
(13) Nonallowable interest costs.--The term ``nonallowable
interest costs'' means interest costs incurred by a producer
that exceed 700 basis points above the applicable official
interest rate for comparable maturities of the CAFTA-DR
country in which the producer is located.
(14) Nonoriginating good or nonoriginating material.--The
terms ``nonoriginating good'' and ``nonoriginating material''
mean a good or material, as the case may be, that does not
qualify as originating under this section.
(15) Packing materials and containers for shipment.--The
term ``packing materials and containers for shipment'' means
the goods used to protect a good during its transportation
and does not include the packaging materials and containers
in which a good is packaged for retail sale.
(16) Preferential tariff treatment.--The term
``preferential tariff treatment'' means the customs duty
rate, and the treatment under article 3.10.4 of the
Agreement, that are applicable to an originating good
pursuant to the Agreement.
(17) Producer.--The term ``producer'' means a person who
engages in the production of a good in the territory of a
CAFTA-DR country.
(18) Production.--The term ``production'' means growing,
mining, harvesting, fishing, raising, trapping, hunting,
manufacturing, processing, assembling, or disassembling a
good.
(19) Reasonably allocate.--The term ``reasonably allocate''
means to apportion in a manner that would be appropriate
under generally accepted accounting principles.
(20) Recovered goods.--The term ``recovered goods'' means
materials in the form of individual parts that are the result
of--
(A) the disassembly of used goods into individual parts;
and
(B) the cleaning, inspecting, testing, or other processing
that is necessary for improvement to sound working condition
of such individual parts.
(21) Remanufactured good.--The term ``remanufactured good''
means a good that is classified under chapter 84, 85, or 87,
or heading 9026, 9031, or 9032, other than a good classified
under heading 8418 or 8516, and that--
(A) is entirely or partially comprised of recovered goods;
and
(B) has a similar life expectancy and enjoys a factory
warranty similar to such a new good.
(22) Total cost.--The term ``total cost'' means all product
costs, period costs, and other costs for a good incurred in
the territory of one or more of the CAFTA-DR countries.
(23) Used.--The term ``used'' means used or consumed in the
production of goods.
(o) Presidential Proclamation Authority.--
(1) In general.--The President is authorized to proclaim,
as part of the HTS--
(A) the provisions set out in Annex 4.1 of the Agreement;
and
(B) any additional subordinate category necessary to carry
out this title consistent with the Agreement.
(2) Fabrics and yarns not available in commercial
quantities in the united states.--The President is authorized
to proclaim that a fabric or yarn is added to the list in
Annex 3.25 of the Agreement in an unrestricted quantity, as
provided in article 3.25.4(e) of the Agreement.
(3) Modifications.--
(A) In general.--Subject to the consultation and layover
provisions of section 104, the President may proclaim
modifications to the provisions proclaimed under the
authority of paragraph (1)(A), other than provisions of
chapters 50 through 63, as included in Annex 4.1 of the
Agreement.
(B) Additional proclamations.--Notwithstanding subparagraph
(A), and subject to the consultation and layover provisions
of section 104, the President may proclaim before the end of
the 1-year period beginning on the date of the enactment of
this Act, modifications to correct any typographical,
clerical, or other nonsubstantive technical error regarding
the provisions of chapters 50 through 63, as included in
Annex 4.1 of the Agreement.
(4) Fabrics, yarns, or fibers not available in commercial
quantities in the cafta-dr countries.--
(A) In general.--Notwithstanding paragraph 3(A), the list
of fabrics, yarns, and fibers set out in Annex 3.25 of the
Agreement may be modified as provided for in this paragraph.
(B) Definitions.--In this paragraph:
(i) The term ``interested entity'' means the government of
a CAFTA-DR country other than the United States, a potential
or actual purchaser of a textile or apparel good, or a
potential or actual supplier of a textile or apparel good.
(ii) All references to ``day'' and ``days'' exclude
Saturdays, Sundays, and legal holidays.
(C) Requests to add fabrics, yarns, or fibers.--(i) An
interested entity may request the President to determine that
a fabric, yarn, or fiber is not available in commercial
quantities in a timely manner in the CAFTA-DR countries and
to add that fabric, yarn, or fiber to the list in Annex 3.25
of the Agreement in a restricted or unrestricted quantity.
(ii) After receiving a request under clause (i), the
President may determine whether--
(I) the fabric, yarn, or fiber is available in commercial
quantities in a timely manner in the CAFTA-DR countries; or
(II) any interested entity objects to the request.
(iii) The President may, within the time periods specified
in clause (iv), proclaim that a fabric, yarn, or fiber that
is the subject of a request submitted under clause (i) is
added to the list in Annex 3.25 of the Agreement in an
unrestricted quantity, or in any restricted quantity that the
President may establish, if the President determines under
clause (ii) that--
(I) the fabric, yarn, or fiber is not available in
commercial quantities in a timely manner in the CAFTA-DR
countries; or
(II) no interested entity has objected to the request.
(iv) The time periods within which the President may issue
a proclamation under clause (iii) are--
(I) not later than 30 days after the date on which the
request is submitted under clause (i); or
(II) not later than 44 days after the request is submitted,
if the President determines, within 30 days after the date on
which the request is submitted, that the President does not
have sufficient information to make a determination under
clause (ii).
(v) Notwithstanding section 103(a)(2), a proclamation made
under clause (iii) shall take effect on the date on which the
text of the proclamation is published in the Federal
Register.
(vi) Not later than 6 months after proclaiming under clause
(iii) that a fabric, yarn, or fiber is added to the list in
Annex 3.25 of the Agreement in a restricted quantity, the
President may eliminate the restriction if the President
determines that the fabric, yarn, or fiber is not available
in

[[Page S7761]]

commercial quantities in a timely manner in the CAFTA-DR
countries.
(D) Deemed approval of request.--If, after an interested
entity submits a request under subparagraph (C)(i), the
President does not, within the applicable time period
specified in subparagraph (C)(iv), make a determination under
subparagraph (C)(ii) regarding the request, the fabric, yarn,
or fiber that is the subject of the request shall be
considered to be added, in an unrestricted quantity, to the
list in Annex 3.25 of the Agreement beginning--
(i) 45 days after the date on which the request was
submitted; or
(ii) 60 days after the date on which the request was
submitted, if the President made a determination under
subparagraph (C)(iv)(II).
(E) Requests to restrict or remove fabrics, yarns, or
fibers.--(i) Subject to clause (ii), an interested entity may
request the President to restrict the quantity of, or remove
from the list in Annex 3.25 of the Agreement, any fabric,
yarn, or fiber--
(I) that has been added to that list in an unrestricted
quantity pursuant to paragraph (2) or subparagraph (C)(iii)
or (D); or
(II) with respect to which the President has eliminated a
restriction under subparagraph (C)(vi).
(ii) An interested entity may submit a request under clause
(i) at any time beginning 6 months after the date of the
action described in subclause (I) or (II) of that clause.
(iii) Not later than 30 days after the date on which a
request under clause (i) is submitted, the President may
proclaim an action provided for under clause (i) if the
President determines that the fabric, yarn, or fiber that is
the subject of the request is available in commercial
quantities in a timely manner in the CAFTA-DR countries.
(iv) A proclamation declared under clause (iii) shall take
effect no earlier than the date that is 6 months after the
date on which the text of the proclamation is published in
the Federal Register.
(F) Procedures.--The President shall establish procedures--
(i) governing the submission of a request under
subparagraphs (C) and (E); and
(ii) providing an opportunity for interested entities to
submit comments and supporting evidence before the President
makes a determination under subparagraph (C) (ii) or (vi) or
(E)(iii).

SEC. 204. CUSTOMS USER FEES.

Section 13031(b) of the Consolidated Omnibus Budget
Reconciliation Act of 1985 (19 U.S.C. 58c(b)) is amended by
adding after paragraph (14), the following:
``(15) No fee may be charged under subsection (a) (9) or
(10) with respect to goods that qualify as originating goods
under section 203 of the Dominican Republic-Central America-
United States Free Trade Agreement Implementation Act. Any
service for which an exemption from such fee is provided by
reason of this paragraph may not be funded with money
contained in the Customs User Fee Account.''.

SEC. 205. RETROACTIVE APPLICATION FOR CERTAIN LIQUIDATIONS
AND RELIQUIDATIONS OF TEXTILE OR APPAREL GOODS.

(a) In General.--Notwithstanding section 514 of the Tariff
Act of 1930 (19 U.S.C. 1514) or any other provision of law,
and subject to subsection (c), an entry--
(1) of a textile or apparel good--
(A) of a CAFTA-DR country that the United States Trade
Representative has designated as an eligible country under
subsection (b), and
(B) that would have qualified as an originating good under
section 203 if the good had been entered after the date of
entry into force of the Agreement for that country,
(2) that was made on or after January 1, 2004, and before
the date of the entry into force of the Agreement with
respect to that country, and
(3) for which customs duties in excess of the applicable
rate of duty for that good set out in the Schedule of the
United States to Annex 3.3 of the Agreement were paid,
shall be liquidated or reliquidated at the applicable rate of
duty for that good set out in the Schedule of the United
States to Annex 3.3 of the Agreement, and the Secretary of
the Treasury shall refund any excess customs duties paid with
respect to such entry.
(b) Eligible Country.--The United States Trade
Representative shall determine, in accordance with article
3.20 of the Agreement, which CAFTA-DR countries are eligible
countries for purposes of this section, and shall publish a
list of all such countries in the Federal Register.
(c) Requests.--Liquidation or reliquidation may be made
under subsection (a) with respect to an entry of a textile or
apparel good only if a request therefor is filed with the
Bureau of Customs and Border Protection, within such period
as the Bureau of Customs and Border Protection shall
establish by regulation in consultation with the Secretary of
the Treasury, that contains sufficient information to enable
the Bureau of Customs and Border Protection--
(1)(A) to locate the entry; or
(B) to reconstruct the entry if it cannot be located; and
(2) to determine that the good satisfies the conditions set
out in subsection (a).
(d) Definition.--As used in this section, the term
``entry'' includes a withdrawal from warehouse for
consumption.

SEC. 206. DISCLOSURE OF INCORRECT INFORMATION; FALSE
CERTIFICATIONS OF ORIGIN; DENIAL OF
PREFERENTIAL TARIFF TREATMENT.

(a) Disclosure of Incorrect Information.--Section 592 of
the Tariff Act of 1930 (19 U.S.C. 1592) is amended--
(1) in subsection (c)--
(A) by redesignating paragraph (9) as paragraph (10); and
(B) by inserting after paragraph (8) the following new
paragraph:
``(9) Prior disclosure regarding claims under the dominican
republic-central america-united states free trade
agreement.--An importer shall not be subject to penalties
under subsection (a) for making an incorrect claim that a
good qualifies as an originating good under section 203 of
the Dominican Republic-Central America-United States Free
Trade Agreement Implementation Act if the importer, in
accordance with regulations issued by the Secretary of the
Treasury, promptly and voluntarily makes a corrected
declaration and pays any duties owing.''; and
(2) by adding at the end the following new subsection:
``(h) False Certifications of Origin Under the Dominican
Republic-Central America-United States Free Trade
Agreement.--
``(1) In general.--Subject to paragraph (2), it is unlawful
for any person to certify falsely, by fraud, gross
negligence, or negligence, in a CAFTA-DR certification of
origin (as defined in section 508(g)(1)(B) of this Act) that
a good exported from the United States qualifies as an
originating good under the rules of origin set out in section
203 of the Dominican Republic-Central America-United States
Free Trade Agreement Implementation Act. The procedures and
penalties of this section that apply to a violation of
subsection (a) also apply to a violation of this subsection.
``(2) Prompt and voluntary disclosure of incorrect
information.--No penalty shall be imposed under this
subsection if, promptly after an exporter or producer that
issued a CAFTA-DR certification of origin has reason to
believe that such certification contains or is based on
incorrect information, the exporter or producer voluntarily
provides written notice of such incorrect information to
every person to whom the certification was issued.
``(3) Exception.--A person may not be considered to have
violated paragraph (1) if--
``(A) the information was correct at the time it was
provided in a CAFTA-DR certification of origin but was later
rendered incorrect due to a change in circumstances; and
``(B) the person promptly and voluntarily provides written
notice of the change in circumstances to all persons to whom
the person provided the certification.''.
(b) Denial of Preferential Tariff Treatment.--Section 514
of the Tariff Act of 1930 (19 U.S.C. 1514) is amended by
adding at the end the following new subsection:
``(h) Denial of Preferential Tariff Treatment Under the
Dominican Republic-Central America-United States Free Trade
Agreement.--If the Bureau of Customs and Border Protection or
the Bureau of Immigration and Customs Enforcement finds
indications of a pattern of conduct by an importer, exporter,
or producer of false or unsupported representations that
goods qualify under the rules of origin set out in section
203 of the Dominican Republic-Central America-United States
Free Trade Agreement Implementation Act, the Bureau of
Customs and Border Protection, in accordance with regulations
issued by the Secretary of the Treasury, may suspend
preferential tariff treatment under the Dominican Republic-
Central America-United States Free Trade Agreement to entries
of identical goods covered by subsequent representations by
that importer, exporter, or producer until the Bureau of
Customs and Border Protection determines that representations
of that person are in conformity with such section 203.''.

SEC. 207. RELIQUIDATION OF ENTRIES.

Subsection (d) of section 520 of the Tariff Act of 1930 (19
U.S.C. 1520(d)) is amended--
(1) in the matter preceding paragraph (1), by striking ``or
section 202 of the United States-Chile Free Trade Agreement
Implementation Act'' and inserting ``, section 202 of the
United States-Chile Free Trade Agreement Implementation Act,
or section 203 of the Dominican Republic-Central America-
United States Free Trade Agreement Implementation Act''; and
(2) in paragraph (2), by inserting ``or certifications''
after ``other certificates''.

SEC. 208. RECORDKEEPING REQUIREMENTS.

Section 508 of the Tariff Act of 1930 (19 U.S.C. 1508) is
amended--
(1) by redesignating subsection (g) as subsection (h);
(2) by inserting after subsection (f) the following new
subsection:
``(g) Certifications of Origin for Goods Exported Under the
Dominican Republic-Central America-United States Free Trade
Agreement.--
``(1) Definitions.--In this subsection:
``(A) Records and supporting documents.--The term `records
and supporting documents' means, with respect to an exported
good under paragraph (2), records and documents related to
the origin of the good, including--
``(i) the purchase, cost, and value of, and payment for,
the good;
``(ii) the purchase, cost, and value of, and payment for,
all materials, including indirect materials, used in the
production of the good; and

[[Page S7762]]

``(iii) the production of the good in the form in which it
was exported.
``(B) CAFTA-DR certification of origin.--The term `CAFTA-DR
certification of origin' means the certification established
under article 4.16 of the Dominican Republic-Central America-
United States Free Trade Agreement that a good qualifies as
an originating good under such Agreement.
``(2) Exports to cafta-dr countries.--Any person who
completes and issues a CAFTA-DR certification of origin for a
good exported from the United States shall make, keep, and,
pursuant to rules and regulations promulgated by the
Secretary of the Treasury, render for examination and
inspection all records and supporting documents related to
the origin of the good (including the certification or copies
thereof).
``(3) Retention period.--Records and supporting documents
shall be kept by the person who issued a CAFTA-DR
certification of origin for at least 5 years after the date
on which the certification was issued.''; and
(3) in subsection (h), as so redesignated--
(A) by inserting ``or (g)'' after ``(f)''; and
(B) by striking ``that subsection'' and inserting ``either
such subsection''.

SEC. 209. ENFORCEMENT RELATING TO TRADE IN TEXTILE OR APPAREL
GOODS.

(a) Action During Verification.--
(1) In general.--If the Secretary of the Treasury requests
the government of a CAFTA-DR country to conduct a
verification pursuant to article 3.24 of the Agreement for
purposes of making a determination under paragraph (2), the
President may direct the Secretary to take appropriate action
described in subsection (b) while the verification is being
conducted.
(2) Determination.--A determination under this paragraph is
a determination--
(A) that an exporter or producer in that country is
complying with applicable customs laws, regulations, and
procedures regarding trade in textile or apparel goods, or
(B) that a claim that a textile or apparel good exported or
produced by such exporter or producer--
(i) qualifies as an originating good under section 203 of
this Act, or
(ii) is a good of a CAFTA-DR country,

is accurate.
(b) Appropriate Action Described.--Appropriate action under
subsection (a)(1) includes--
(1) suspension of preferential tariff treatment under the
Agreement with respect to--
(A) any textile or apparel good exported or produced by the
person that is the subject of a verification under subsection
(a)(1) regarding compliance described in subsection
(a)(2)(A), if the Secretary determines there is insufficient
information to support any claim for preferential tariff
treatment that has been made with respect to any such good;
or
(B) the textile or apparel good for which a claim of
preferential tariff treatment has been made that is the
subject of a verification under subsection (a)(1) regarding a
claim described in subsection (a)(2)(B), if the Secretary
determines there is insufficient information to support that
claim;
(2) denial of preferential tariff treatment under the
Agreement with respect to--
(A) any textile or apparel good exported or produced by the
person that is the subject of a verification under subsection
(a)(1) regarding compliance described in subsection
(a)(2)(A), if the Secretary determines that the person has
provided incorrect information to support any claim for
preferential tariff treatment that has been made with respect
to any such good; or
(B) the textile or apparel good for which a claim of
preferential tariff treatment has been made that is the
subject of a verification under subsection (a)(1) regarding a
claim described in subsection (a)(2)(B), if the Secretary
determines that a person has provided incorrect information
to support that claim;
(3) detention of any textile or apparel good exported or
produced by the person that is the subject of a verification
under subsection (a)(1) regarding compliance described in
subsection (a)(2)(A) or a claim described in subsection
(a)(2)(B), if the Secretary determines there is insufficient
information to determine the country of origin of any such
good; and
(4) denial of entry into the United States of any textile
or apparel good exported or produced by the person that is
the subject of a verification under subsection (a)(1)
regarding compliance described in subsection (a)(2)(A) or a
claim described in subsection (a)(2)(B), if the Secretary
determines that the person has provided incorrect information
as to the country of origin of any such good.
(c) Action on Completion of a Verification.--On completion
of a verification under subsection (a), the President may
direct the Secretary to take appropriate action described in
subsection (d) until such time as the Secretary receives
information sufficient to make the determination under
subsection (a)(2) or until such earlier date as the President
may direct.
(d) Appropriate Action Described.--Appropriate action under
subsection (c) includes--
(1) denial of preferential tariff treatment under the
Agreement with respect to--
(A) any textile or apparel good exported or produced by the
person that is the subject of a verification under subsection
(a)(1) regarding compliance described in subsection
(a)(2)(A), if the Secretary determines there is insufficient
information to support, or that the person has provided
incorrect information to support, any claim for preferential
tariff treatment that has been made with respect to any such
good; or
(B) the textile or apparel good for which a claim of
preferential tariff treatment has been made that is the
subject of a verification under subsection (a)(1) regarding a
claim described in subsection (a)(2)(B), if the Secretary
determines there is insufficient information to support, or
that a person has provided incorrect information to support,
that claim; and
(2) denial of entry into the United States of any textile
or apparel good exported or produced by the person that is
the subject of a verification under subsection (a)(1)
regarding compliance described in subsection (a)(2)(A) or a
claim described in subsection (a)(2)(B), if the Secretary
determines there is insufficient information to determine, or
that the person has provided incorrect information as to, the
country of origin of any such good.
(e) Publication of Name of Person.--The Secretary may
publish the name of any person that the Secretary has
determined--
(1) is engaged in intentional circumvention of applicable
laws, regulations, or procedures affecting trade in textile
or apparel goods; or
(2) has failed to demonstrate that it produces, or is
capable of producing, textile or apparel goods.

SEC. 210. REGULATIONS.

The Secretary of the Treasury shall prescribe such
regulations as may be necessary to carry out--
(1) subsections (a) through (n) of section 203;
(2) the amendment made by section 204; and
(3) any proclamation issued under section 203(o).

TITLE III--RELIEF FROM IMPORTS

SEC. 301. DEFINITIONS.

In this title:
(1) CAFTA-DR article.--The term ``CAFTA-DR article'' means
an article that qualifies as an originating good under
section 203(b).
(2) CAFTA-DR textile or apparel article.--The term ``CAFTA-
DR textile or apparel article'' means a textile or apparel
good (as defined in section 3(5)) that is a CAFTA-DR article.
(3) De minimis supplying country.--
(A) Subject to subparagraph (B), the term ``de minimis
supplying country'' means a CAFTA-DR country whose share of
imports of the relevant CAFTA-DR article into the United
States does not exceed 3 percent of the aggregate volume of
imports of the relevant CAFTA-DR article in the most recent
12-month period for which data are available that precedes
the filing of the petition under section 311(a).
(B) A CAFTA-DR country shall not be considered to be a de
minimis supplying country if the aggregate share of imports
of the relevant CAFTA-DR article into the United States of
all CAFTA-DR countries that satisfy the conditions of
subparagraph (A) exceeds 9 percent of the aggregate volume of
imports of the relevant CAFTA-DR article during the
applicable 12-month period.
(4) Relevant cafta-dr article.--The term ``relevant CAFTA-
DR article'' means the CAFTA-DR article with respect to which
a petition has been filed under section 311(a).

Subtitle A--Relief From Imports Benefiting From the Agreement

SEC. 311. COMMENCING OF ACTION FOR RELIEF.

(a) Filing of Petition.--A petition requesting action under
this subtitle for the purpose of adjusting to the obligations
of the United States under the Agreement may be filed with
the Commission by an entity, including a trade association,
firm, certified or recognized union, or group of workers,
that is representative of an industry. The Commission shall
transmit a copy of any petition filed under this subsection
to the United States Trade Representative.
(b) Investigation and Determination.--Upon the filing of a
petition under subsection (a), the Commission, unless
subsection (d) applies, shall promptly initiate an
investigation to determine whether, as a result of the
reduction or elimination of a duty provided for under the
Agreement, a CAFTA-DR article is being imported into the
United States in such increased quantities, in absolute terms
or relative to domestic production, and under such conditions
that imports of the CAFTA-DR article constitute a substantial
cause of serious injury or threat thereof to the domestic
industry producing an article that is like, or directly
competitive with, the imported article.
(c) Applicable Provisions.--The following provisions of
section 202 of the Trade Act of 1974 (19 U.S.C. 2252) apply
with respect to any investigation initiated under subsection
(b):
(1) Paragraphs (1)(B) and (3) of subsection (b).
(2) Subsection (c).
(3) Subsection (i).
(d) Articles Exempt From Investigation.--No investigation
may be initiated under this section with respect to any
CAFTA-DR article if, after the date that the Agreement enters
into force, import relief has been provided with respect to
that CAFTA-DR article under this subtitle.

SEC. 312. COMMISSION ACTION ON PETITION.

(a) Determination.--Not later than 120 days after the date
on which an investigation is initiated under section 311(b)
with respect to a petition, the Commission shall

[[Page S7763]]

make the determination required under that section. At that
time, the Commission shall also determine whether any CAFTA-
DR country is a de minimis supplying country.
(b) Applicable Provisions.--For purposes of this subtitle,
the provisions of paragraphs (1), (2), and (3) of section
330(d) of the Tariff Act of 1930 (19 U.S.C. 1330(d) (1), (2),
and (3)) shall be applied with respect to determinations and
findings made under this section as if such determinations
and findings were made under section 202 of the Trade Act of
1974 (19 U.S.C. 2252).
(c) Additional Finding and Recommendation if Determination
Affirmative.--If the determination made by the Commission
under subsection (a) with respect to imports of an article is
affirmative, or if the President may consider a determination
of the Commission to be an affirmative determination as
provided for under paragraph (1) of section 330(d) of the
Tariff Act of 1930 (19 U.S.C. 1330(d)), the Commission shall
find, and recommend to the President in the report required
under subsection (d), the amount of import relief that is
necessary to remedy or prevent the injury found by the
Commission in the determination and to facilitate the efforts
of the domestic industry to make a positive adjustment to
import competition. The import relief recommended by the
Commission under this subsection shall be limited to the
relief described in section 313(c). Only those members of the
Commission who voted in the affirmative under subsection (a)
are eligible to vote on the proposed action to remedy or
prevent the injury found by the Commission. Members of the
Commission who did not vote in the affirmative may submit, in
the report required under subsection (d), separate views
regarding what action, if any, should be taken to remedy or
prevent the injury.
(d) Report to President.--Not later than the date that is
30 days after the date on which a determination is made under
subsection (a) with respect to an investigation, the
Commission shall submit to the President a report that
includes--
(1) the determination made under subsection (a) and an
explanation of the basis for the determination;
(2) if the determination under subsection (a) is
affirmative, any findings and recommendations for import
relief made under subsection (c) and an explanation of the
basis for each recommendation; and
(3) any dissenting or separate views by members of the
Commission regarding the determination and recommendation
referred to in paragraphs (1) and (2).
(e) Public Notice.--Upon submitting a report to the
President under subsection (d), the Commission shall promptly
make public such report (with the exception of information
which the Commission determines to be confidential) and shall
cause a summary thereof to be published in the Federal
Register.

SEC. 313. PROVISION OF RELIEF.

(a) In General.--Not later than the date that is 30 days
after the date on which the President receives the report of
the Commission in which the Commission's determination under
section 312(a) is affirmative, or which contains a
determination under section 312(a) that the President
considers to be affirmative under paragraph (1) of section
330(d) of the Tariff Act of 1930 (19 U.S.C. 1330(d)(1)), the
President, subject to subsection (b), shall provide relief
from imports of the article that is the subject of such
determination to the extent that the President determines
necessary to remedy or prevent the injury found by the
Commission and to facilitate the efforts of the domestic
industry to make a positive adjustment to import competition.
(b) Exception.--The President is not required to provide
import relief under this section if the President determines
that the provision of the import relief will not provide
greater economic and social benefits than costs.
(c) Nature of Relief.--
(1) In general.--The import relief that the President is
authorized to provide under this section with respect to
imports of an article is as follows:
(A) The suspension of any further reduction provided for
under Annex 3.3 of the Agreement in the duty imposed on such
article.
(B) An increase in the rate of duty imposed on such article
to a level that does not exceed the lesser of--
(i) the column 1 general rate of duty imposed under the HTS
on like articles at the time the import relief is provided;
or
(ii) the column 1 general rate of duty imposed under the
HTS on like articles on the day before the date on which the
Agreement enters into force.
(2) Progressive liberalization.--If the period for which
import relief is provided under this section is greater than
1 year, the President shall provide for the progressive
liberalization (described in article 8.2.3 of the Agreement)
of such relief at regular intervals during the period of its
application.
(d) Period of Relief.--
(1) In general.--Subject to paragraph (2), any import
relief that the President is authorized to provide under this
section may not, in the aggregate, be in effect for more than
4 years.
(2) Extension.--
(A) In general.--If the initial period for any import
relief provided under this section is less than 4 years, the
President, after receiving a determination from the
Commission under subparagraph (B) that is affirmative, or
which the President considers to be affirmative under
paragraph (1) of section 330(d) of the Tariff Act of 1930 (19
U.S.C. 1330(d)(1)), may extend the effective period of any
import relief provided under this section, subject to the
limitation under paragraph (1), if the President determines
that--
(i) the import relief continues to be necessary to remedy
or prevent serious injury and to facilitate adjustment by the
domestic industry to import competition; and
(ii) there is evidence that the industry is making a
positive adjustment to import competition.
(B) Action by commission.--(i) Upon a petition on behalf of
the industry concerned that is filed with the Commission not
earlier than the date which is 9 months, and not later than
the date which is 6 months, before the date on which any
action taken under subsection (a) is to terminate, the
Commission shall conduct an investigation to determine
whether action under this section continues to be necessary
to remedy or prevent serious injury and whether there is
evidence that the industry is making a positive adjustment to
import competition.
(ii) The Commission shall publish notice of the
commencement of any proceeding under this subparagraph in the
Federal Register and shall, within a reasonable time
thereafter, hold a public hearing at which the Commission
shall afford interested parties and consumers an opportunity
to be present, to present evidence, and to respond to the
presentations of other parties and consumers, and otherwise
to be heard.
(iii) The Commission shall transmit to the President a
report on its investigation and determination under this
subparagraph not later than 60 days before the action under
subsection (a) is to terminate, unless the President
specifies a different date.
(e) Rate After Termination of Import Relief.--When import
relief under this section is terminated with respect to an
article--
(1) the rate of duty on that article after such termination
and on or before December 31 of the year in which such
termination occurs shall be the rate that, according to the
Schedule of the United States to Annex 3.3 of the Agreement
would have been in effect 1 year after the provision of
relief under subsection (a); and
(2) the rate of duty for that article after December 31 of
the year in which termination occurs shall be, at the
discretion of the President, either--
(A) the applicable rate of duty for that article set out in
the Schedule of the United States to Annex 3.3 of the
Agreement; or
(B) the rate of duty resulting from the elimination of the
tariff in equal annual stages ending on the date set out in
the Schedule of the United States to Annex 3.3 of the
Agreement for the elimination of the tariff.
(f) Articles Exempt From Relief.--No import relief may be
provided under this section on--
(1) any article subject to import relief under chapter 1 of
title II of the Trade Act of 1974 (19 U.S.C. 2251 et seq.);
or
(2) imports of a CAFTA-DR article of a CAFTA-DR country
that is a de minimis supplying country with respect to that
article.

SEC. 314. TERMINATION OF RELIEF AUTHORITY.

(a) General Rule.--Subject to subsection (b), no import
relief may be provided under this subtitle after the date
that is 10 years after the date on which the Agreement enters
into force.
(b) Exception.--If an article for which relief is provided
under this subtitle is an article for which the period for
tariff elimination, set out in the Schedule of the United
States to Annex 3.3 of the Agreement, is greater than 10
years, no relief under this subtitle may be provided for that
article after the date on which that period ends.

SEC. 315. COMPENSATION AUTHORITY.

For purposes of section 123 of the Trade Act of 1974 (19
U.S.C. 2133), any import relief provided by the President
under section 313 shall be treated as action taken under
chapter 1 of title II of such Act.

SEC. 316. CONFIDENTIAL BUSINESS INFORMATION.

Section 202(a)(8) of the Trade Act of 1974 (19 U.S.C.
2252(a)(8)) is amended in the first sentence--
(1) by striking ``and''; and
(2) by inserting before the period at the end ``, and title
III of the Dominican Republic-Central America-United States
Free Trade Agreement Implementation Act''.

Subtitle B--Textile and Apparel Safeguard Measures

SEC. 321. COMMENCEMENT OF ACTION FOR RELIEF.

(a) In General.--A request under this subtitle for the
purpose of adjusting to the obligations of the United States
under the Agreement may be filed with the President by an
interested party. Upon the filing of a request, the President
shall review the request to determine, from information
presented in the request, whether to commence consideration
of the request.
(b) Publication of Request.--If the President determines
that the request under subsection (a) provides the
information necessary for the request to be considered, the
President shall cause to be published in the Federal Register
a notice of commencement of consideration of the request, and
notice seeking public comments regarding the request. The
notice shall include a summary of

[[Page S7764]]

the request and the dates by which comments and rebuttals
must be received.

SEC. 322. DETERMINATION AND PROVISION OF RELIEF.

(a) Determination.--
(1) In general.--If a positive determination is made under
section 321(b), the President shall determine whether, as a
result of the elimination of a duty under the Agreement, a
CAFTA-DR textile or apparel article of a specified CAFTA-DR
country is being imported into the United States in such
increased quantities, in absolute terms or relative to the
domestic market for that article, and under such conditions
as to cause serious damage, or actual threat thereof, to a
domestic industry producing an article that is like, or
directly competitive with, the imported article.
(2) Serious damage.--In making a determination under
paragraph (1), the President--
(A) shall examine the effect of increased imports on the
domestic industry, as reflected in changes in such relevant
economic factors as output, productivity, utilization of
capacity, inventories, market share, exports, wages,
employment, domestic prices, profits, and investment, none of
which is necessarily decisive; and
(B) shall not consider changes in technology or consumer
preference as factors supporting a determination of serious
damage or actual threat thereof.
(3) Deadline for determination.--The President shall make
the determination under paragraph (1) no later than 30 days
after the completion of any consultations held pursuant to
article 3.23.4 of the Agreement.
(b) Provision of Relief.--
(1) In general.--If a determination under subsection (a) is
affirmative, the President may provide relief from imports of
the article that is the subject of such determination, as
provided in paragraph (2), to the extent that the President
determines necessary to remedy or prevent the serious damage
and to facilitate adjustment by the domestic industry.
(2) Nature of relief.--The relief that the President is
authorized to provide under this subsection with respect to
imports of an article is an increase in the rate of duty
imposed on the article to a level that does not exceed the
lesser of--
(A) the column 1 general rate of duty imposed under the HTS
on like articles at the time the import relief is provided;
or
(B) the column 1 general rate of duty imposed under the HTS
on like articles on the day before the date on which the
Agreement enters into force.

SEC. 323. PERIOD OF RELIEF.

(a) In General.--Subject to subsection (b), any import
relief that the President provides under subsection (b) of
section 322 may not, in the aggregate, be in effect for more
than 3 years.
(b) Extension.--If the initial period for any import relief
provided under section 322 is less than 3 years, the
President may extend the effective period of any import
relief provided under that section, subject to the limitation
set forth in subsection (a), if the President determines
that--
(1) the import relief continues to be necessary to remedy
or prevent serious damage and to facilitate adjustment by the
domestic industry to import competition; and
(2) there is evidence that the industry is making a
positive adjustment to import competition.

SEC. 324. ARTICLES EXEMPT FROM RELIEF.

The President may not provide import relief under this
subtitle with respect to any article if--
(1) import relief previously has been provided under this
subtitle with respect to that article; or
(2) the article is subject to import relief under--
(A) subtitle A; or
(B) chapter 1 of title II of the Trade Act of 1974.

SEC. 325. RATE AFTER TERMINATION OF IMPORT RELIEF.

When import relief under this subtitle is terminated with
respect to an article, the rate of duty on that article shall
be the rate that would have been in effect, but for the
provision of such relief.

SEC. 326. TERMINATION OF RELIEF AUTHORITY.

No import relief may be provided under this subtitle with
respect to any article after the date that is 5 years after
the date on which the Agreement enters into force.

SEC. 327. COMPENSATION AUTHORITY.

For purposes of section 123 of the Trade Act of 1974 (19
U.S.C. 2133), any import relief provided by the President
under this subtitle shall be treated as action taken under
chapter 1 of title II of that Act.

SEC. 328. CONFIDENTIAL BUSINESS INFORMATION.

The President may not release information received in
connection with a review under this subtitle which the
President considers to be confidential business information
unless the party submitting the confidential business
information had notice, at the time of submission, that such
information would be released by the President, or such party
subsequently consents to the release of the information. To
the extent a party submits confidential business information,
it shall also provide a nonconfidential version of the
information in which the confidential business information is
summarized or, if necessary, deleted.

Subtitle C--Cases Under Title II of the Trade Act of 1974

SEC. 331. FINDINGS AND ACTION ON GOODS OF CAFTA-DR COUNTRIES.

(a) Effect of Imports.--If, in any investigation initiated
under chapter 1 of title II of the Trade Act of 1974, the
Commission makes an affirmative determination (or a
determination which the President may treat as an affirmative
determination under such chapter by reason of section 330(d)
of the Tariff Act of 1930), the Commission shall also find
(and report to the President at the time such injury
determination is submitted to the President) whether imports
of the article of each CAFTA-DR country that qualify as
originating goods under section 203(b) are a substantial
cause of serious injury or threat thereof.
(b) Presidential Determination Regarding Imports of CAFTA-
DR Countries.--In determining the nature and extent of action
to be taken under chapter 1 of title II of the Trade Act of
1974, the President may exclude from the action goods of a
CAFTA-DR country with respect to which the Commission has
made a negative finding under subsection (a).

TITLE IV--MISCELLANEOUS

SEC. 401. ELIGIBLE PRODUCTS.

Section 308(4)(A) of the Trade Agreements Act of 1979 (19
U.S.C. 2518(4)(A)) is amended--
(1) by striking ``or'' at the end of clause (ii);
(2) by striking the period at the end of clause (iii) and
inserting ``; or''; and
(3) by adding at the end the following new clause:
``(iv) a party to the Dominican Republic-Central America-
United States Free Trade Agreement, a product or service of
that country or instrumentality which is covered under that
Agreement for procurement by the United States.''.

SEC. 402. MODIFICATIONS TO THE CARIBBEAN BASIN ECONOMIC
RECOVERY ACT.

(a) Former Beneficiary Countries.--Section 212(a)(1) of the
Caribbean Basin Economic Recovery Act (19 U.S.C. 2702(a)(1))
is amended by adding at the end the following new
subparagraph:
``(F) The term `former beneficiary country' means a country
that ceases to be designated as a beneficiary country under
this title because the country has become a party to a free
trade agreement with the United States.''.
(b) Countries Eligible for Designation as Beneficiary
Countries.--Section 212(b) of the Caribbean Basin Economic
Recovery Act (19 U.S.C. 2702(b)) is amended by striking from
the list of countries eligible for designation as beneficiary
countries--
(1) ``Costa Rica'', effective on the date the President
terminates the designation of Costa Rica as a beneficiary
country pursuant to section 201(a)(3);
(2) ``Dominican Republic'', effective on the date the
President terminates the designation of the Dominican
Republic as a beneficiary country pursuant to section
201(a)(3);
(3) ``El Salvador'', effective on the date the President
terminates the designation of El Salvador as a beneficiary
country pursuant to section 201(a)(3);
(4) ``Guatemala'', effective on the date the President
terminates the designation of Guatemala as a beneficiary
country pursuant to section 201(a)(3);
(5) ``Honduras'', effective on the date the President
terminates the designation of Honduras as a beneficiary
country pursuant to section 201(a)(3); and
(6) ``Nicaragua'', effective on the date the President
terminates the designation of Nicaragua as a beneficiary
country pursuant to section 201(a)(3).
(c) Materials of, or Processing in, Former Beneficiary
Countries.--Section 213(a)(1) of the Caribbean Basin Economic
Recovery Act (19 U.S.C. 2703(a)(1)) is amended by striking
``the Commonwealth of Puerto Rico and the United States
Virgin Islands'' and inserting ``the Commonwealth of Puerto
Rico, the United States Virgin Islands, and any former
beneficiary country''.
(d) Definitions and Special Rules.--Section 213(b)(5) of
the Caribbean Basin Economic Recovery Act (19 U.S.C.
2703(b)(5)) is amended by adding at the end the following new
subparagraphs:
``(G) Former cbtpa beneficiary country.--The term `former
CBTPA beneficiary country' means a country that ceases to be
designated as a CBTPA beneficiary country under this title
because the country has become a party to a free trade
agreement with the United States.
``(H) Articles that undergo production in a cbtpa
beneficiary country and a former cbtpa beneficiary country.--
(i) For purposes of determining the eligibility of an article
for preferential treatment under paragraph (2) or (3),
references in either such paragraph, and in subparagraph (C)
of this paragraph to--
``(I) a `CBTPA beneficiary country' shall be considered to
include any former CPTPA beneficiary country, and
``(II) `CBTPA beneficiary countries' shall be considered to
include former CBTPA beneficiary countries,

if the article, or a good used in the production of the
article, undergoes production in a CBTPA beneficiary country.
``(ii) An article that is eligible for preferential
treatment under clause (i) shall not be ineligible for such
treatment because the article is imported directly from a
former CBTPA beneficiary country.
``(iii) Notwithstanding clauses (i) and (ii), an article
that is a good of a former CBTPA

[[Page S7765]]

beneficiary country for purposes of section 304 of the Tariff
Act of 1930 (19 U.S.C. 1304) or section 334 of the Uruguay
Round Agreements Act (19 U.S.C. 3592), as the case may be,
shall not be eligible for preferential treatment under
paragraph (2) or (3), unless--
``(I) it is an article that is a good of the Dominican
Republic under either such section 304 or 334; and
``(II) the article, or a good used in the production of the
article, undergoes production in Haiti.''.

SEC. 403. PERIODIC REPORTS AND MEETINGS ON LABOR OBLIGATIONS
AND LABOR CAPACITY-BUILDING PROVISIONS.

(a) Reports to Congress.--
(1) In general.--Not later than the end of the 2-year
period beginning on the date the Agreement enters into force,
and not later than the end of each 2-year period thereafter
during the succeeding 14-year period, the President shall
report to the Congress on the progress made by the CAFTA-DR
countries in--
(A) implementing Chapter Sixteen and Annex 16.5 of the
Agreement; and
(B) implementing the White Paper.
(2) White paper.--In this section, the term ``White Paper''
means the report of April 2005 of the Working Group of the
Vice Ministers Responsible for Trade and Labor in the
Countries of Central America and the Dominican Republic
entitled ``The Labor Dimension in Central America and the
Dominican Republic - Building on Progress: Strengthening
Compliance and Enhancing Capacity''.
(3) Contents of reports.--Each report under paragraph (1)
shall include the following:
(A) A description of the progress made by the Labor
Cooperation and Capacity Building Mechanism established by
article 16.5 and Annex 16.5 of the Agreement, and the Labor
Affairs Council established by article 16.4 of the Agreement,
in achieving their stated goals, including a description of
the capacity-building projects undertaken, funds received,
and results achieved, in each CAFTA-DR country.
(B) Recommendations on how the United States can facilitate
full implementation of the recommendations contained in the
White Paper.
(C) A description of the work done by the CAFTA-DR
countries with the International Labor Organization to
implement the recommendations contained in the White Paper,
and the efforts of the CAFTA-DR countries with international
organizations, through the Labor Cooperation and Capacity
Building Mechanism referred to in subparagraph (A), to
advance common commitments regarding labor matters.
(D) A summary of public comments received on--
(i) capacity-building efforts by the United States
envisaged by article 16.5 and Annex 16.5 of the Agreement;
(ii) efforts by the United States to facilitate full
implementation of the White Paper recommendations; and
(iii) the efforts made by the CAFTA-DR countries to comply
with article 16.5 and Annex 16.5 of the Agreement and to
fully implement the White Paper recommendations, including
the progress made by the CAFTA-DR countries in affording to
workers internationally-recognized worker rights through
improved capacity.
(4) Solicitation of public comments.--The President shall
establish a mechanism to solicit public comments for purposes
of paragraph (3)(D).
(b) Periodic Meetings of Secretary of Labor With Labor
Ministers of CAFTA-DR Countries.--
(1) Periodic meetings.--The Secretary of Labor should take
the necessary steps to meet periodically with the labor
ministers of the CAFTA-DR countries to discuss--
(A) the operation of the labor provisions of the Agreement;
(B) progress on the commitments made by the CAFTA-DR
countries to implement the recommendations contained in the
White Paper;
(C) the work of the International Labor Organization in the
CAFTA-DR countries, and other cooperative efforts, to afford
to workers internationally-recognized worker rights; and
(D) such other matters as the Secretary of Labor and the
labor ministers consider appropriate.
(2) Inclusion in biennial reports.--The President shall
include in each report under subsection (a), as the President
deems appropriate, summaries of the meetings held pursuant to
paragraph (1).
Mr. GRASSLEY. Mr. President, the Senate has just passed S.1307, the
Dominican Republic-Central America-United States Free Trade Agreement
Implementation Act. I am confident that history will record this moment
as an important positive step in the development of democracy and
prosperity in the CAFTA countries. And I am also confident that our
leadership in passing CAFTA will be rewarded, through the benefits we
will enjoy under this trade agreement and in terms of advancing our
overall trade agenda.
First and foremost, today's vote reflects the leadership of President
George W. Bush to advance the national economic and security interests
of this country. This agreement is another important piece of the
President's overall agenda to increase market access opportunities for
America's farmers, ranchers, manufacturers, and service providers. By
passing CAFTA we also strengthen our position in the ongoing Doha
Development Agenda negotiations of the World Trade Organization. I hope
our Trade Representative, Ambassador Portman, will build upon the
momentum created today to press for meaningful progress in the Doha
Round negotiations.
I want to thank the members of the Administration who delivered the
comprehensive CAFTA agreement. At the top of that list is our former
Trade Representative, Ambassador Zoellick, who managed to negotiate
such a carefully balanced agreement without taking anything off the
table. I firmly believe that the guiding principle for all our trade
negotiations must be to deliver comprehensive agreements that do not
take anything off the table. I expect our trade negotiators to continue
delivering comprehensive agreements like CAFTA. Supporting Ambassador
Zoellick closely were Ambassador Allen Johnson, our chief agriculture
negotiator, and Regina Vargo, Assistant U.S. Trade Representative for
the Americas. Of course, I am grateful too for the diligence with which
Ambassador Portman has focused on CAFTA since taking over as our Trade
Representative.
Today's successful outcome would not have been possible without the
hard work and sustained effort of a number of dedicated professionals.
I want to take this opportunity to thank them for their efforts. From
the White House Office of Legislative Affairs, I want to thank Mike
Smythers, Special Assistant to the President for Senate Affairs. I also
want to thank Matt Niemeyer, Assistant U.S. Trade Representative for
Congressional Affairs. The long hours they put in to address Senate
concerns and to maintain an open dialogue with Members and staff are
very much appreciated. And supporting Mr. Niemeyer in those efforts was
Jennifer Mulveny, Deputy Assistant U.S. Trade Representative for
Congressional Affairs. David Oliver, of the Office of General Counsel
at USTR, also provided significant legal and technical support both
during and after the negotiations were completed.
I want to commend my colleague on the Finance Committee, the ranking
member, Senator Baucus. Although we did not agree in our views on
CAFTA, we maintained our positive working relationship throughout the
process. I hope the folks at home will take note. People may think
Washington is mired in partisan bickering, but I think we on the
Finance Committee have demonstrated our ability to disagree and still
maintain respect for each other and for committee process. I am
grateful to Senator Baucus, and very proud of our committee.
My diligent staff on the Finance Committee has worked very hard to
make today's vote possible. First and foremost, my chief counsel and
staff director, Kolan Davis, deserves recognition. His skills in
managing my lengthy legislative agenda are key to my success. The chief
international trade counsel to the committee, Everett Eissenstat, also
deserves special mention. Without Everett's tireless dedication to
passing CAFTA, I really do not think we would be in this position
today. I am also grateful for the strong support the rest of my trade
staff provided. David Johanson and Stephen Schaefer, international
trade counselors to the committee, were instrumental in providing legal
advice and technical support, as were Tiffany McCullen Atwell,
international trade policy advisor, Claudia Bridgeford, international
trade policy assistant, and Russell Ugone, who is on detail to my staff
from the Bureau of Customs and Border Protection in the Department of
Homeland Security. And I want to note my gratitude for the many efforts
of Zach Paulsen, former International trade policy assistant to the
committee.
Senator Baucus' staff also deserves recognition for their
professionalism and flexibility in helping to move the legislative
process forward. I am grateful to Russ Sullivan, Democratic staff
director, and Bill Dauster, deputy staff director, for their
accommodation and dedication to the committee. I also appreciate the
efforts of Brian Pomper, chief international trade counsel to

[[Page S7766]]

Senator Baucus, and the other members of the Democratic trade staff:
Shara Aranoff, Demetrios Marantis, Anya Landau, Janis Lazda, and
Chelsea Thomas.
Finally, I want to identify two people for special recognition. The
first is Polly Craighill, senior counsel in the Senate's Office of
Legislative Counsel. Her dedication to the Senate is profound. The
Finance Committee benefits greatly from Ms. Craighill's expertise in
legislative drafting, her tireless efforts, and her constructive
perfectionism. Today's vote is in no small part a testament to her
skills. I also want to extend my deep gratitude to Jeanne Grimmett,
legislative attorney in the American Law Division of the Congressional
Research Service. My staff and I repeatedly called upon Ms. Grimmett to
prepare legal research and memoranda in connection with our development
of this legislation, and her timely support was instrumental to our
success today. I am very grateful.
I look forward to the enactment of this legislation and hope that
President Bush will sign it into law very soon.
Mr. FRIST. Mr. President, I move to reconsider the vote.
Mr. BENNETT. I move to lay that motion on the table.
The motion to lay on the table was agreed to.

____________________