[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

                                      av

       (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

                                      av

       (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

                                      nc

       (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.

                          ____________________