[Congressional Record Volume 157, Number 151 (Tuesday, October 11, 2011)]
[House]
[Pages H6745-H6758]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
UNITED STATES-PANAMA TRADE PROMOTION AGREEMENT IMPLEMENTATION ACT
Mr. CAMP. Madam Speaker, pursuant to House Resolution 425, I call up
the bill (H.R. 3079) to implement the United States-Panama Trade
Promotion Agreement, and ask for its immediate consideration.
The Clerk read the title of the bill.
The SPEAKER pro tempore. Pursuant to House Resolution 425, the bill
is considered read.
The text of the bill is as follows:
H.R. 3079
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 ``United
States-Panama Trade Promotion 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. Disclosure of incorrect information; false certifications of
origin; denial of preferential tariff treatment.
Sec. 206. Reliquidation of entries.
Sec. 207. Recordkeeping requirements.
Sec. 208. Enforcement relating to trade in textile or apparel goods.
Sec. 209. Regulations.
TITLE III--RELIEF FROM IMPORTS
Sec. 301. Definitions.
Subtitle A--Relief From Imports Benefitting 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 Panamanian articles.
TITLE IV--MISCELLANEOUS
Sec. 401. Eligible products.
Sec. 402. Modification to the Caribbean Basin Economic Recovery Act.
TITLE V--OFFSETS
Sec. 501. Extension of customs user fees.
Sec. 502. Time for payment of corporate estimated taxes.
SEC. 2. PURPOSES.
The purposes of this Act are--
(1) to approve and implement the free trade agreement
between the United States and Panama 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 and Panama for their mutual benefit;
(3) to establish free trade between the United States and
Panama 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 United
States-Panama Trade Promotion Agreement approved by Congress
under section 101(a)(1).
(2) Commission.--The term ``Commission'' means the United
States International Trade Commission.
(3) HTS.--The term ``HTS'' means the Harmonized Tariff
Schedule of the United States.
(4) 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 3.30 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), Congress
approves--
(1) the United States-Panama Trade Promotion Agreement
entered into on June 28, 2007, with the Government of Panama
and submitted to Congress on October 3, 2011; and
(2) the statement of administrative action proposed to
implement the Agreement that was submitted to Congress on
October 3, 2011.
(b) Conditions for Entry Into Force of the Agreement.--At
such time as the President determines that Panama has taken
[[Page H6746]]
measures necessary to comply with those provisions of the
Agreement that are to take effect on the date on which the
Agreement enters into force, the President is authorized to
exchange notes with the Government of Panama providing for
the entry into force, on or after January 1, 2012, of the
Agreement with respect to the United States.
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
on which 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
on which 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 the committees
referred to in paragraph (2) 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 shall 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
2011 to the Department of Commerce up to $150,000 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),
this Act and the amendments made by this Act take effect on
the date on which the Agreement enters into force.
(b) Exceptions.--
(1) In general.--Sections 1 through 3, this title, and
title V take effect on the date of the enactment of this Act.
(2) Certain amendatory provisions.--The amendments made by
sections 204, 205, 207, and 401 of this Act take effect on
the date of the enactment of this Act and apply with respect
to Panama on the date on which the Agreement enters into
force.
(c) Termination of the Agreement.--On the date on which the
Agreement terminates, this Act (other than this subsection
and title V) and the amendments made by this Act (other than
the amendments made by title V) 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, 3.26, 3.27, 3.28,
and 3.29, and Annex 3.3, 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, on the date on which the Agreement
enters into force, terminate the designation of Panama as a
beneficiary developing country for purposes of title V of the
Trade Act of 1974 (19 U.S.C. 2461 et seq.).
(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, on the date on which the Agreement
enters into force, terminate the designation of Panama as a
beneficiary country for purposes of that Act.
(B) Exception.--Notwithstanding subparagraph (A), Panama
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 4 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 Panama 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 with respect to Panama 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.
(d) Tariff Rate Quotas.--In implementing the tariff rate
quotas set forth in Appendix I to the General Notes to the
Schedule of the United States to Annex 3.3 of the Agreement,
[[Page H6747]]
the President shall take such action as may be necessary to
ensure that imports of agricultural goods do not disrupt the
orderly marketing of commodities in the United States.
SEC. 202. ADDITIONAL DUTIES ON CERTAIN AGRICULTURAL GOODS.
(a) Definitions.--In this section:
(1) Applicable ntr (mfn) rate of duty.--The term
``applicable NTR (MFN) rate of duty'' means, with respect to
a safeguard good, a rate of duty equal to the lowest of--
(A) the base rate in the Schedule of the United States to
Annex 3.3 of the Agreement;
(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; or
(C) 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.
(2) Safeguard good.--The term ``safeguard good'' means a
good--
(A) that is included in the Schedule of the United States
to Annex 3.17 of the Agreement;
(B) that qualifies as an originating good under section
203; and
(C) for which a claim for preferential tariff treatment
under the Agreement has been made.
(3) Schedule rate of duty.--The term ``schedule rate of
duty'' means, with respect to a safeguard good, the rate of
duty for that good that is set forth in the Schedule of the
United States to Annex 3.3 of the Agreement.
(4) Trigger level.--
(A) In general.--The term ``trigger level'' means--
(i) in the case of a safeguard good classified under
subheading 0201.10.50, 0201.20.80, 0201.30.80, 0202.10.50,
0202.20.80, or 0202.30.80 of the HTS--
(I) in year 1 of the Agreement, 330 metric tons; and
(II) in year 2 of the Agreement through year 14 of the
Agreement, a quantity equal to 110 percent of the trigger
level for that safeguard good for the preceding calendar
year; and
(ii) in the case of any other safeguard good, 115 percent
of the quantity that is provided for that safeguard good in
the corresponding calendar year in the applicable table
contained in Appendix I to the General Notes to the Schedule
of the United States to Annex 3.3 of the Agreement.
(B) Relationship to table.--For purposes of subparagraph
(A)(ii), year 1 in the applicable table contained in Appendix
I to the General Notes to the Schedule of the United States
to Annex 3.3 of the Agreement corresponds to year 1 of the
Agreement.
(5) Year 1 of the agreement.--The term ``year 1 of the
Agreement'' means the period beginning on the date, in a
calendar year, on which the Agreement enters into force and
ending on December 31 of that calendar year.
(6) Years other than year 1 of the agreement.--Any
reference to a year of the Agreement subsequent to year 1 of
the Agreement shall be deemed to be a reference to the
corresponding calendar year in which the Agreement is in
force.
(b) Additional Duties on Safeguard Goods.--
(1) In general.--In addition to any duty proclaimed under
subsection (a) or (b) of section 201, the Secretary of the
Treasury shall assess a duty, in the amount determined under
paragraph (2), on a safeguard good 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 that is imported into the United States in that calendar
year exceeds the trigger level for that good for that
calendar year.
(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
0201.10.50, 0201.20.80, 0201.30.80, 0202.10.50, 0202.20.80,
or 0202.30.80 of the HTS--
(i) in year 1 of the Agreement through year 6 of the
Agreement, an amount equal to 100 percent of the excess of
the applicable NTR (MFN) rate of duty over the schedule rate
of duty; and
(ii) in year 7 of the Agreement through year 14 of the
Agreement, an amount equal to 50 percent of the excess of the
applicable NTR (MFN) rate of duty over the schedule rate of
duty;
(B) in the case of a good classified under subheading
0406.10.08, 0406.10.88, 0406.20.91, 0406.30.91, 0406.90.97,
or 2105.00.20 of the HTS--
(i) in year 1 of the Agreement through year 11 of the
Agreement, an amount equal to 100 percent of the excess of
the applicable NTR (MFN) rate of duty over the schedule rate
of duty; and
(ii) in year 12 of the Agreement through year 14 of the
Agreement, an amount equal to 50 percent of the excess of the
applicable NTR (MFN) rate of duty over the schedule rate of
duty; and
(C) in the case of any other safeguard good--
(i) in year 1 of the Agreement through year 13 of the
Agreement, an amount equal to 100 percent of the excess of
the applicable NTR (MFN) rate of duty over the schedule rate
of duty; and
(ii) in year 14 of the Agreement through year 16 of the
Agreement, an amount equal to 50 percent of the excess of the
applicable NTR (MFN) rate of duty over the schedule rate of
duty.
(3) Notice.--Not later than 60 days after the date on which
the Secretary of the Treasury first assesses an additional
duty in a calendar year on a good under this subsection, the
Secretary shall notify the Government of Panama in writing of
such action and shall provide to that Government data
supporting the assessment of the additional duty.
(c) 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--
(1) subtitle A of title III of this Act; or
(2) chapter 1 of title II of the Trade Act of 1974 (19
U.S.C. 2251 et seq.).
(d) 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.
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 Panama or the United States).
(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 Panama, the United States, or both;
(2) the good--
(A) is produced entirely in the territory of Panama, the
United States, or both, 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
Panama, the United States, or both, 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 build-
down method described in paragraph (2), the build-up method
described in paragraph (3), or the following net cost method:
NC-VNM
RVC = -------------- 100
NC
(B) Definitions.--In subparagraph (A):
(i) Automotive good.--The term ``automotive good'' means a
good provided for in
[[Page H6748]]
any of subheadings 8407.31 through 8407.34, subheading
8408.20, heading 8409, or 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 net
cost formula contained in subparagraph (A), over the
producer's fiscal year--
(I) with respect to all motor vehicles in any one 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 Panama or the
United States.
(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 motor vehicles, and is produced in the same
plant in the territory of Panama or the United States, 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 Panama or the United
States, 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 Panama or the United States 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 materials 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 net cost
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) the fiscal year of the producer of such goods,
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 such goods that are exported to the territory of
Panama or the United States.
(E) Calculating net cost.--The importer, exporter, or
producer of an automotive good shall, consistent with the
provisions regarding allocation of costs provided for in
generally accepted accounting principles, determine the net
cost of the 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 these 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 (19 U.S.C. 3511(d)(8)), 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 by the producer; 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 Panama, the United States, or both, to the
location of the producer.
(ii) Duties, taxes, and customs brokerage fees on the
material paid in the territory of Panama, the United States,
or both, 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 Panama, the United States, or both, to the
location of the producer.
(ii) Duties, taxes, and customs brokerage fees on the
material paid in the territory of Panama, the United States,
or both, 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
Panama, the United States, or both.
(e) Accumulation.--
(1) Originating materials used in production of goods of
the other country.--Originating materials from the territory
of Panama or the United States that are used in the
production of a good in the territory of the other country
shall be considered to originate in the territory of such
other country.
(2) Multiple producers.--A good that is produced in the
territory of Panama, the United States, or both, 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 forth 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 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,
[[Page H6749]]
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 forth 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 February 12,
2011).
(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 and finished in the territory of
Panama, the United States, or both.
(C) Fabric, yarn, or fiber.--For purposes of this
paragraph, in the case of a good that is a fabric, yarn, 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 country in which the production is
performed (whether Panama or the United States); 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 such 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
forth 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 such accessories, spare parts, or tools are specified
or are 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 forth 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 territory of Panama or the United States, 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 Panama or the United States; or
(2) does not remain under the control of customs
authorities in the territory of a country other than Panama
or the United States.
(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 goods, other than textile or apparel
goods, 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 (19 U.S.C.
3511(d)(8)), 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) 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.
(3) 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.
(4) Generally accepted accounting principles.--The term
``generally accepted accounting principles''--
(A) means the recognized consensus or substantial
authoritative support given in the territory of Panama or the
United States, as the case may be, with respect to the
recording of revenues, expenses, costs, assets, and
liabilities, the disclosure of information, and the
preparation of financial statements; and
(B) may encompass broad guidelines for general application
as well as detailed standards, practices, and procedures.
(5) Good wholly obtained or produced entirely in the
territory of panama, the united states, or both.--The term
``good wholly obtained or produced entirely in the territory
of Panama, the United States, or both'' means any of the
following:
(A) Plants and plant products harvested or gathered in the
territory of Panama, the United States, or both.
(B) Live animals born and raised in the territory of
Panama, the United States, or both.
(C) Goods obtained in the territory of Panama, the United
States, or both from live animals.
(D) Goods obtained from hunting, trapping, fishing, or
aquaculture conducted in the territory of Panama, the United
States, or both.
(E) Minerals and other natural resources not included in
subparagraphs (A) through (D) that are extracted or taken
from the territory of Panama, the United States, or both.
(F) Fish, shellfish, and other marine life taken from the
sea, seabed, or subsoil outside the territory of Panama or
the United States by--
(i) a vessel that is registered or recorded with Panama and
flying the flag of Panama; or
(ii) a vessel that is documented under the laws of the
United States.
[[Page H6750]]
(G) Goods produced on board a factory ship from goods
referred to in subparagraph (F), if such factory ship--
(i) is registered or recorded with Panama and flies the
flag of Panama; or
(ii) is a vessel that is documented under the laws of the
United States.
(H)(i) Goods taken by Panama or a person of Panama from the
seabed or subsoil outside the territorial waters of Panama,
if Panama has rights to exploit such seabed or subsoil.
(ii) Goods taken by the United States or a person of the
United States from the seabed or subsoil outside the
territorial waters of the United States, if the United States
has rights to exploit such seabed or subsoil.
(I) Goods taken from outer space, if the goods are obtained
by Panama or the United States or a person of Panama or the
United States and not processed in the territory of a country
other than Panama or the United States.
(J) Waste and scrap derived from--
(i) manufacturing or processing operations in the territory
of Panama, the United States, or both; or
(ii) used goods collected in the territory of Panama, the
United States, or both, if such goods are fit only for the
recovery of raw materials.
(K) Recovered goods derived in the territory of Panama, the
United States, or both from used goods, and used in the
territory of Panama, the United States, or both, in the
production of remanufactured goods.
(L) Goods, at any stage of production, produced in the
territory of Panama, the United States, or both, exclusively
from--
(i) goods referred to in any of subparagraphs (A) through
(J), or
(ii) the derivatives of goods referred to in clause (i).
(6) Identical goods.--The term ``identical goods'' means
goods that are the same in all respects relevant to the rule
of origin that qualifies the goods as originating goods.
(7) Indirect material.--The term ``indirect material''
means a good used in the production, testing, or inspection
of another good but not physically incorporated into that
other good, or a good used in the maintenance of buildings or
the operation of equipment associated with the production of
another 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 good that is not incorporated into the other
good but the use of which in the production of the other good
can reasonably be demonstrated to be a part of that
production.
(8) Material.--The term ``material'' means a good that is
used in the production of another good, including a part or
an ingredient.
(9) 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.
(10) Model line of motor vehicles.--The term ``model line
of motor vehicles'' means a group of motor vehicles having
the same platform or model name.
(11) Net cost.--The term ``net cost'' means total cost
minus sales promotion, marketing, and after-sales service
costs, royalties, shipping and packing costs, and
nonallowable interest costs that are included in the total
cost.
(12) 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 country in
which the producer is located.
(13) Nonoriginating good or nonoriginating material.--The
term ``nonoriginating good'' or ``nonoriginating material''
means a good or material, as the case may be, that does not
qualify as originating under this section.
(14) Packing materials and containers for shipment.--The
term ``packing materials and containers for shipment'' means
goods used to protect another good during its transportation
and does not include the packaging materials and containers
in which the other good is packaged for retail sale.
(15) 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.
(16) Producer.--The term ``producer'' means a person who
engages in the production of a good in the territory of
Panama or the United States.
(17) Production.--The term ``production'' means growing,
mining, harvesting, fishing, raising, trapping, hunting,
manufacturing, processing, assembling, or disassembling a
good.
(18) Reasonably allocate.--The term ``reasonably allocate''
means to apportion in a manner that would be appropriate
under generally accepted accounting principles.
(19) 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.
(20) Remanufactured good.--The term ``remanufactured good''
means a good that is classified under chapter 84, 85, 87, or
90, or heading 9402, 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 good that is new.
(21) Total cost.--The term ``total cost'' means all product
costs, period costs, and other costs for a good incurred in
the territory of Panama, the United States, or both.
(22) Used.--The term ``used'' means utilized 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 forth in Annex 4.1 of the Agreement;
and
(B) any additional subordinate category that is necessary
to carry out this title consistent with the Agreement.
(2) Fabrics, yarns, or fibers not available in commercial
quantities in the united states.--The President is authorized
to proclaim that a fabric, yarn, or fiber 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 on which the
Agreement enters into force, 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 panama and the united states.--
(A) In general.--Notwithstanding paragraph (3)(A), the list
of fabrics, yarns, and fibers set forth in Annex 3.25 of the
Agreement may be modified as provided for in this paragraph.
(B) Definitions.--In this paragraph:
(i) Interested entity.--The term ``interested entity''
means the Government of Panama, a potential or actual
purchaser of a textile or apparel good, or a potential or
actual supplier of a textile or apparel good.
(ii) Day; days.--All references to ``day'' and ``days''
exclude Saturdays, Sundays, and legal holidays observed by
the Government of the United States.
(C) Requests to add fabrics, yarns, or fibers.--
(i) In general.--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
Panama and the United States 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) Determinations.--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 Panama or the United States;
or
(II) any interested entity objects to the request.
(iii) Proclamation authority.--The President may, within
the time periods specified in clause (iv), proclaim that the
fabric, yarn, or fiber that is the subject of the request 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 has determined
under clause (ii) that--
(I) the fabric, yarn, or fiber is not available in
commercial quantities in a timely manner in Panama and the
United States; or
(II) no interested entity has objected to the request.
(iv) Time periods.--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 a
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) Effective date.--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) Elimination of restriction.--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
[[Page H6751]]
fiber is not available in commercial quantities in a timely
manner in Panama and the United States.
(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 is
submitted; or
(ii) 60 days after the date on which the request is
submitted, if the President made a determination under
subparagraph (C)(iv)(II).
(E) Requests to restrict or remove fabrics, yarns, or
fibers.--
(i) In general.--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) of this paragraph; or
(II) with respect to which the President has eliminated a
restriction under subparagraph (C)(vi).
(ii) Time period for submission.--An interested entity may
submit a request under clause (i) at any time beginning on
the date that is 6 months after the date of the action
described in subclause (I) or (II) of that clause.
(iii) Proclamation authority.--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 Panama or the
United States.
(iv) Effective date.--A proclamation issued under clause
(iii) may not take effect 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 (20) the following:
``(21) 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 United States-Panama Trade Promotion
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. 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 (13) as paragraph (14); and
(B) by inserting after paragraph (12) the following new
paragraph:
``(13) Prior disclosure regarding claims under the united
states-panama trade promotion 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 United States-Panama Trade
Promotion 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 with respect to that
good.''; and
(2) by adding at the end the following new subsection:
``(l) False Certifications of Origin Under the United
States-Panama Trade Promotion 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 Panama TPA certification of
origin (as defined in section 508 of this Act) that a good
exported from the United States qualifies as an originating
good under the rules of origin provided for in section 203 of
the United States-Panama Trade Promotion 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 Panama TPA 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 shall not be considered to have
violated paragraph (1) if--
``(A) the information was correct at the time it was
provided in a Panama TPA 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:
``(l) Denial of Preferential Tariff Treatment Under the
United States-Panama Trade Promotion Agreement.--If U.S.
Customs and Border Protection or U.S. Immigration and Customs
Enforcement of the Department of Homeland Security 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 provided for in
section 203 of the United States-Panama Trade Promotion
Agreement Implementation Act, U.S. Customs and Border
Protection, in accordance with regulations issued by the
Secretary of the Treasury, may suspend preferential tariff
treatment under the United States-Panama Trade Promotion
Agreement to entries of identical goods covered by subsequent
representations by that importer, exporter, or producer until
U.S. Customs and Border Protection determines that
representations of that person are in conformity with such
section 203.''.
SEC. 206. RELIQUIDATION OF ENTRIES.
Section 520(d) of the Tariff Act of 1930 (19 U.S.C.
1520(d)) is amended in the matter preceding paragraph (1)--
(1) by striking ``or''; and
(2) by striking ``for which'' and inserting ``, or section
203 of the United States-Panama Trade Promotion Agreement
Implementation Act for which''.
SEC. 207. RECORDKEEPING REQUIREMENTS.
Section 508 of the Tariff Act of 1930 (19 U.S.C. 1508) is
amended--
(1) by redesignating subsection (k) as subsection (l);
(2) by inserting after subsection (j) the following new
subsection:
``(k) Certifications of Origin for Goods Exported Under the
United States-panama Trade Promotion 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
``(iii) the production of the good in the form in which it
was exported.
``(B) Panama tpa certification of origin.--The term `Panama
TPA certification of origin' means the certification
established under article 4.15 of the United States-Panama
Trade Promotion Agreement that a good qualifies as an
originating good under such Agreement.
``(2) Exports to panama.--Any person who completes and
issues a Panama TPA 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.--The person who issues a Panama TPA
certification of origin shall keep the records and supporting
documents relating to that certification of origin for a
period of at least 5 years after the date on which the
certification is issued.''; and
(3) in subsection (l), as so redesignated, by striking
``(i), or (j)'' and inserting ``(i), (j), or (k)''.
SEC. 208. 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 Panama to conduct a verification pursuant
to article 3.21 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 of the Secretary that--
(A) an enterprise in Panama is complying with applicable
customs laws, regulations, and procedures regarding trade in
textile or apparel goods, or
(B) a claim that a textile or apparel good exported or
produced by such enterprise--
(i) qualifies as an originating good under section 203, or
(ii) is a good of Panama,
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
[[Page H6752]]
a verification under subsection (a)(1) regarding compliance
described in subsection (a)(2)(A), if the Secretary of the
Treasury determines that 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 that 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 that 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 of the Treasury 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 of the Treasury determines that
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 that 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 that 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.--In accordance with
article 3.21.9 of the Agreement, the Secretary of the
Treasury 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, the textile or apparel goods that are
the subject of a verification under subsection (a)(1).
SEC. 209. 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) Panamanian article.--The term ``Panamanian article''
means an article that qualifies as an originating good under
section 203(b).
(2) Panamanian textile or apparel article.--The term
``Panamanian textile or apparel article'' means a textile or
apparel good (as defined in section 3(4)) that is a
Panamanian article.
Subtitle A--Relief From Imports Benefitting 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 Panamanian 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 Panamanian 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
Panamanian article if, after the date on which the Agreement
enters into force, import relief has been provided with
respect to that Panamanian 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 make the
determination required under that section.
(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.--
(1) In general.--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)(1)), 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.
(2) Limitation on relief.--The import relief recommended by
the Commission under this subsection shall be limited to the
relief described in section 313(c).
(3) Voting; separate views.--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 referred to in
paragraph (1) and any finding or recommendation referred to
in paragraph (2).
(e) Public Notice.--Upon submitting a report to the
President under subsection (d), the Commission shall promptly
make public the report (with the exception of information
which the Commission determines to be confidential) and shall
publish a summary of the report 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 a 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.
[[Page H6753]]
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 the
article.
(B) An increase in the rate of duty imposed on the 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 provides 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) Investigation.--Upon a petition on behalf of the
industry concerned that is filed with the Commission not
earlier than the date that is 9 months, and not later than
the date that 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) Notice and hearing.--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) Report.--The Commission shall submit 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 such termination occurs shall be, at the
discretion of the President, either--
(A) the applicable rate of duty for that article set forth
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 forth 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 that is subject to import relief under--
(A) subtitle B; or
(B) chapter 1 of title II of the Trade Act of 1974 (19
U.S.C. 2251 et seq.); or
(2) any article on which an additional duty assessed under
section 202(b) is in effect.
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 forth 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 (19 U.S.C. 2251 et seq.).
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 United States-Panama Trade Promotion Agreement
Implementation Act''.
Subtitle B--Textile and Apparel Safeguard Measures
SEC. 321. COMMENCEMENT OF ACTION FOR RELIEF.
(a) In General.--A request for action 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 publish 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 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
Panamanian textile or apparel article 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, no one
of which is necessarily decisive; and
(B) shall not consider changes in consumer preference or
changes in technology 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) not later than 30 days
after the completion of any consultations held pursuant to
article 3.24.4 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 section 322(b) 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
[[Page H6754]]
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 an 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 (19
U.S.C. 2251 et seq.).
SEC. 325. RATE AFTER TERMINATION OF IMPORT RELIEF.
On the date on which 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 such Act (19 U.S.C. 2251 et seq.).
SEC. 328. CONFIDENTIAL BUSINESS INFORMATION.
The President may not release information received in
connection with an investigation or determination 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, the party 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 PANAMANIAN ARTICLES.
(a) Effect of Imports.--If, in any investigation initiated
under chapter 1 of title II of the Trade Act of 1974 (19
U.S.C. 2251 et seq.), 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 (19 U.S.C.
1330(d))), 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 Panamanian article
are a substantial cause of serious injury or threat thereof.
(b) Presidential Determination Regarding Imports of
Panamanian Articles.--In determining the nature and extent of
action to be taken under chapter 1 of title II of the Trade
Act of 1974 (19 U.S.C. 2251 et seq.), the President may
exclude from the action Panamanian articles 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 (viii);
(2) by striking the period at the end of clause (ix) and
inserting ``; or''; and
(3) by adding at the end the following new clause:
``(x) a party to the United States-Panama Trade Promotion
Agreement, a product or service of that country or
instrumentality which is covered under that agreement for
procurement by the United States.''.
SEC. 402. MODIFICATION TO THE CARIBBEAN BASIN ECONOMIC
RECOVERY ACT.
(a) In General.--Section 212(b) of the Caribbean Basin
Economic Recovery Act (19 U.S.C. 2702(b)) is amended by
striking ``Panama'' from the list of countries eligible for
designation as beneficiary countries.
(b) Effective Date.--The amendment made by subsection (a)
takes effect on the date on which the President terminates
the designation of Panama as a beneficiary country pursuant
to section 201(a)(3) of this Act.
TITLE V--OFFSETS
SEC. 501. EXTENSION OF CUSTOMS USER FEES.
Section 13031(j)(3) of the Consolidated Omnibus Budget
Reconciliation Act of 1985 (19 U.S.C. 58c(j)(3)) is amended
by adding at the end the following:
``(D) Notwithstanding subparagraph (B)(i), fees may be
charged under paragraphs (1) through (8) of subsection (a)
during the period beginning on September 1, 2021, and ending
on September 30, 2021.''.
SEC. 502. TIME FOR PAYMENT OF CORPORATE ESTIMATED TAXES.
Notwithstanding section 6655 of the Internal Revenue Code
of 1986, in the case of a corporation with assets of not less
than $1,000,000,000 (determined as of the end of the
preceding taxable year)--
(1) the amount of any required installment of corporate
estimated tax which is otherwise due in July, August, or
September of 2012 shall be increased by 0.25 percent of such
amount (determined without regard to any increase in such
amount not contained in such Code);
(2) the amount of any required installment of corporate
estimated tax which is otherwise due in July, August, or
September of 2016 shall be increased by 0.25 percent of such
amount (determined without regard to any increase in such
amount not contained in such Code); and
(3) the amount of the next required installment after an
installment referred to in paragraph (1) or (2) shall be
appropriately reduced to reflect the amount of the increase
by reason of such paragraph.
The SPEAKER pro tempore. The bill shall be debatable for 90 minutes,
with 30 minutes controlled by the gentleman from Michigan (Mr. Camp),
30 minutes controlled by the gentleman from Michigan (Mr. Levin), and
30 minutes controlled by the gentleman from Ohio (Mr. Kucinich).
The Chair recognizes the gentleman from Michigan (Mr. Camp).
General Leave
Mr. CAMP. Madam Speaker, I ask unanimous consent that all Members
have 5 legislative days in which to revise and extend their remarks.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from Michigan?
There was no objection.
Mr. CAMP. I yield myself such time as I may consume.
Madam Speaker, I urge rapid passage of this legislation to implement
the U.S.-Panama Trade Promotion Agreement. This agreement enjoys broad
bipartisan support, and it's clear why. It levels the trade playing
field between the U.S. and Panama. It is good for U.S. companies,
workers, and farmers; and it advances our national security and
leadership in the Western Hemisphere.
Right now, Panama enjoys almost total duty-free access to the United
States market because it is a beneficiary of various trade preference
programs. Given the importance of a stable and prosperous Panama,
giving Panama this market access is warranted. However, U.S. industrial
and consumer products going to Panama face an average duty of 7
percent, and U.S. agricultural exports face an average tariff of 15
percent. Implementing this agreement will level the playing field for
U.S. exporters by drastically reducing or ending Panama's tariff on
U.S. goods. Most U.S. consumer and industrial products will immediately
become duty-free, as will half of U.S. farm exports. Any remaining
tariffs will decrease quickly thereafter.
Opening Panama's market will be a boon for U.S. companies, workers,
and farmers. The Panamanian economy is rapidly growing and is expected
to more than double by 2020. Panama is already one of the largest
markets for some U.S. exporters and service firms. The importance of
Panama will only grow for these firms and others as we gain greater
access to this expanding economy. This is also true for our farmers,
whose exports to Panama are expected to significantly increase under
the agreement. Not only will American farmers benefit from lower
tariffs into Panama, but they will also benefit from the removal of
nontariff and regulatory barriers that discriminate against U.S.
agricultural products. Best of all, the agreement will create new jobs
and greater prosperity in the United States without adding to the
deficit.
Finally, the benefits of the U.S.-Panama Trade Promotion Agreement
are not only economic. The agreement is critical to fostering our
commitment to Latin America, enhancing our leadership in the Western
Hemisphere, and reaffirming our relationship with a close friend.
Panama is obviously a vital ally in terms of port and maritime
security. It is also an important partner in combating drug trafficking
and terrorism. Of course there is also Panama's crown jewel, the canal.
The United States is the largest user of the canal, and canal security
is paramount to our national security and broadly to open sea routes.
Panama's cooperation in maintaining the security of the canal has been
vital to our security and the region.
Madam Speaker, for all of these reasons, the time to wait has passed.
We urgently need to pass this important job-creating legislation and
move forward on an aggressive trade agenda once again.
[[Page H6755]]
I urge all of my colleagues to support this bipartisan legislation,
and I reserve the balance of my time.
Mr. LEVIN. Madam Speaker, I yield myself 1 minute.
As I said with regard to Colombia, each of these agreements should be
taken on their own. The Panama FTA, as originally negotiated by the
Bush administration, failed to address serious concerns about Panama's
labor laws and status as a tax haven. It has been changed through the
efforts of congressional Democrats and the Obama administration, and it
now deserves our support.
Fully enforceable labor and environmental standards are included in
the core of this agreement. Panama has brought its laws into full
compliance with ILO standards. And late last year, Panama signed a tax
exchange information agreement, and they have changed their laws to
implement this agreement. Republicans negotiated a flawed agreement. It
has been fixed. It now deserves our support.
I reserve the balance of my time.
Mr. KUCINICH. Madam Speaker, I yield myself such time as I may
consume.
I rise in strong opposition to H.R. 3079, the United States-Panama
Trade Promotion Agreement Implementation Act. With our Nation's
unemployment continuing to hover around 9 percent, it is unconscionable
that we are considering a NAFTA clone free trade agreement. This
agreement would further facilitate the outsourcing of American jobs and
undermine the rights of American workers. Proponents of free trade
agreements like to purport that they're good for the American economy
and will create jobs. But history is on the side of those of us who
opposed NAFTA, CAFTA, and other damaging trade agreements over the last
decade.
{time} 2110
Free trade agreements play a significant role in exacerbating the
negative effects of globalization, including the rapid privatization of
vital public resources that has resulted in the loss of domestic jobs
and manufacturing industries and in significant decreases in labor and
environmental standards.
In addition, free trade agreements result in significant job loss and
privatization of labor-intensive industries for countries we enter into
the trade agreements with. Unionizing in countries like Mexico and
Colombia has resulted in death or imprisonment of union leaders. Every
State in this country has been affected negatively by our destructive
trade policies. The Economic Policy Institute estimates that nearly
700,000 U.S. jobs have been displaced since the passage of NAFTA in the
1990s. The majority of the jobs displaced, 60 percent were in the
manufacturing sector. My home State of Ohio is one of the top 10 States
with the most jobs displaced by NAFTA, having lost 34,900 jobs.
Our rapidly increasing trade deficits with countries like China have
resulted in the loss of over 5 million jobs in the last decade. Of that
5 million, the State of Ohio has lost 103,000 jobs as a result of the
increase of our trade deficit with China.
This is not a debate about being for trade or against trade, as some
of my colleagues have framed it. This is a debate about learning from
the free trade policies we pursued over the last decade that have
proven to be significantly damaging to the American economy and
American workers. The numbers speak for themselves. I urge my
colleagues to oppose this agreement.
I reserve the balance of my time.
Mr. CAMP. I yield 2 minutes to the distinguished chairman of the
Trade Subcommittee, the gentleman from Texas (Mr. Brady).
Mr. BRADY of Texas. Madam Speaker, I rise in strong support of this
bipartisan legislation to create jobs in America and to strengthen our
relationship with a strong, long-standing ally in our hemisphere,
Panama.
Why wouldn't we sign this sales agreement? Panama is a growing
market; almost a 9 percent growth in their economy and in a major way
in our backyard. They are an economy that matches up beautifully with
America. Most of its economy is the services sector, like the United
States, and it provides brand new markets, new customers, not just for
manufacturing, not just for agriculture, as important as they are, but
for our services sector, which is critical to so many communities
across this country.
It's time to act now because we're falling behind. While America has
been off the trade agenda, other countries have moved forward very
aggressively. And Panama, recognizing its strategic importance and its
economic growth, has signed similar sales agreements with Taiwan and
Singapore, and with Europe and Canada, and many more are in line. Every
day we wait, American manufacturers, American farmers, American
technology companies lose out.
Finally, Panama has done so much to tackle issues, like labor rights.
They have strong commitment to labor rights, having recently passed
under President Martinelli almost a dozen laws strengthening labor
rights in Panama.
And to address the issue of tax avoidance and tax havens, Panama has
signed many agreements, including with the United States, to be
transparent to the point where they are now recognized internationally
as being as committed to open tax treaties and tax treatments as the
United States is today.
Madam Speaker, there is no reason to wait. Implementing the Panama
agreement will benefit our economy, it will benefit the Panamanian
economy, and strengthen this crucial ally and keep America from falling
further behind.
Mr. KUCINICH. Madam Speaker, since I came to Congress, I've worked
together with Congresswoman Kaptur in challenging these unfair trade
agreements, and I am proud to yield 4 minutes to the gentlelady from
Ohio for her presentation.
Ms. KAPTUR. I want to thank my good friend from Ohio for yielding me
the time and for his steadfast opposition to these free trade
agreements, and I rise in strong opposition to this proposed Panama
Free Trade Agreement. Who in their right mind could believe any free
trade agreements modeled on NAFTA would create jobs in our country?
I remember during the 1990s fighting the first NAFTA accord here, and
Newt Gingrich saying at that time NAFTA would help the United States
``by increasing American jobs through world sales.'' Sure.
Here's what NAFTA yielded: a trillion dollars in accumulated trade
deficit, and hundreds and hundreds of thousands of lost American jobs
that moved from Cleveland and moved from Avon Lake and moved from
Sandusky and moved from Toledo and moved from Madeira to other places
in this world south of the border. Why don't we go back and fix this?
Now, let's be honest. Panama's entire GDP equals about 6 percent of
the economy of the Washington, D.C., metropolitan area. So what could
this Panama agreement actually be about? Well, letters we've received
give us some insight into what it might be about. With Panama, we know
the country has a long-standing money laundering problem and that it is
a tax haven for corporations. How convenient.
In 2008, the Government Accountability Office included Panama on its
50-country tax haven list. Get the picture? Starting to clear some of
the fog? We all know about some of these Cayman Island accounts. Well,
why don't we add Panama right to the stack. Panama was long on the
OECD's gray list of countries that failed to implement internationally
agreed upon tax standards. These guys have got something really good
going. But you know what? In this country it would be illegal.
According to Public Citizen, approximately 400,000 firms and numerous
wealthy individuals use Panama's offshore financial services industry
to dodge paying their taxes. I thought we were supposed to be for
returning those tax dollars to the United States, not giving them
another escape hatch. AFSCME has said that Panama has a history of
failing to protect workers and enforce labor rights. And the Sierra
Club points out that the Panama free trade agreement has the same
investment chapters proposed in other trade agreements that allow
foreign investors and corporations to directly challenge public
interest laws for compensation before international tribunals,
bypassing domestic courts. In other words, the rule of law gets
shredded piece by piece by piece.
[[Page H6756]]
Why does America keep shooting itself in the foot? As the building
and construction trades at the AFL-CIO have noted, the Panama proposed
agreement, like all others, ``undermine the Buy America policies that
reinvested our taxes in our communities.''
You know, it's really sad when an institution and an administration
keeps doing the same thing over and over and over again that is
hollowing out the jobs in the United States of America. We want to make
it in America. We don't want to outsource more jobs, provide more tax
havens, provide more escape hatches.
When you campaign and you try to represent the people in places like
Ohio, as Congressman Kucinich knows, we've tried so very hard, every
time you create 100 jobs, they snatch away 300. And then they say to
the workers: You know what, you're earning too much money; $14 an hour,
you're going down to $9. You don't like that? Well, there's the door
because there are 7,000 workers lined up for part-time jobs in places
like northern Ohio.
This Congress had better wake up and renegotiate these trade deals
that have cost the middle class across this country their ability to
earn a living in America.
I thank the gentleman for yielding me the time and look forward to
the continuing debate.
Mr. CAMP. Madam Speaker, I yield 2 minutes to the gentleman from
Illinois (Mr. Kinzinger).
Mr. KINZINGER of Illinois. I thank the chairman for yielding.
America is talking so much now, and there's such a need right now for
jobs. There is such a need. Over 9 percent of this country is begging
every day for the opportunity to go out and work and earn a living. We
have a middle class that is feeling the squeeze because we see
disappearing manufacturing. And that's something I'm very concerned
about.
In my district in Illinois, we have a very heavy manufacturing base,
and when you look at that heavy manufacturing base and the fact that
they produce a lot of goods that need to be exported, you have to find
a consumer base in order to sell it, and 95 percent of the world's
consumers live outside of our country. It would only make sense to
create an environment where we can take our goods and in a fair way
export them to other countries. Panama, an ally of the United States,
currently has a situation where they can charge tariffs on our imports
and we don't charge tariffs on imports from them.
{time} 2120
This agreement would bring that to a level playing field and allow
the people in my district, who literally sweat every day wondering if
they're going to have a paycheck tomorrow, the opportunity to enhance
their exports, to enhance those American goods that are made in
America, but it's great for somebody in the other country to read the
product that they buy that also says ``Made in America,'' too.
We have a heavy agricultural district in my area, too. When I look at
the farmers and their opportunity to sell overseas their goods and
products that we create every day, that's very important. As you know,
in business, the ability to be successful means you have to be on the
cutting edge and constantly finding markets and places to sell your
goods. This does that for us.
I think it's sad that it's taken us this many years to get to this
point, and I think we've lost a lot of opportunity costs in the
process, but I'm pleased that today we are finally taking up these
three agreements. I'm pleased that we're taking up this trade agreement
with Panama and that we have an opportunity to really strengthen a bond
with a strong ally of the United States, strengthen our exports, and
I'm excited that the tens of thousands of people that rely on trade in
my district will have an opportunity to sell more goods.
Mr. LEVIN. I yield 4 minutes to the distinguished gentleman from
Washington (Mr. McDermott), the ranking member on our Trade
Subcommittee.
(Mr. McDERMOTT asked and was given permission to revise and extend
his remarks.)
Mr. McDERMOTT. Madam Speaker, I agree with the last gentleman. We
ought to be talking about the jobs bill. The President put a bill out
here. We can't get the Republican leadership to even bring it up. But
we will bring up the Panama free trade agreement. Now, this is a break
from trade policies in the past. It reflects the hard work of many of
us to change U.S. trade policy.
There are five reasons to support this agreement:
First, it has strong enforceable labor and environmental obligations.
Many of us fought for years to get these commitments into our trade
agreements. We lost those battles in 1995. I was here when NAFTA passed
and the debate over CAFTA 6 years ago, which is why in that agreement
15 Democrats voted for it--because it wouldn't take care of workers.
Now, that all changed in 2007 when the Democrats took over the House.
The last administration finally accepted our demands on labor, the
environment, and other issues, such as access to medicine. This
agreement includes all of those.
We, secondly, have used the leverage of this agreement to eliminate a
tax haven. No one denies that Panama was a great tax haven. But they
have ratified the Tax Information Agreement with us, which The Wall
Street Journal says is ``the most significant step to date on the road
to ending four decades of virtually watertight banking secrecy laws in
Panama.''
Third, we worked with Panama to bring its labor rights up to
standard.
Fourth, the investment provisions of this agreement do more to
protect the governments' rights to regulate those found in past
agreements, such as chapter 11 of NAFTA. For example, this agreement
clarifies that the environmental regulations generally are not
``expropriations'' and that foreign investors do not have greater
rights than U.S. investors under U.S. law.
Finally, the United States has consistently maintained a trade
surplus with Panama for 20 years, and this agreement expects to
increase that.
I support the agreement. Panama has done what they have asked, and
they should enjoy the benefits of a free trade agreement. But make no
mistake, we need to do more to improve our U.S. trade policy. We have
to get the Republican leadership in the House and the Senate to admit
that we're going to have to have a jobs bill.
We've been in session for 300 days after an election in which all we
heard was the Democrats didn't get jobs, jobs, jobs. And now, 300
days--silence. Silence on the Republican side. Not one single bill.
When is it coming, folks? That ought to be the next bill that comes up
to the floor.
I urge my colleagues to vote for this.
Mr. CAMP. I yield 2 minutes to the distinguished chairman of the
Foreign Affairs Committee, the gentlewoman from Florida (Ms. Ros-
Lehtinen).
Ms. ROS-LEHTINEN. I thank the esteemed chairman for the time.
Madam Speaker, I rise in strong support of the U.S.-Panama free trade
agreement. In my home district of Miami-Dade, Panama is among its top
25 trading partners. In Florida as a whole, it ranks number one among
all of the States in exports to that country--incredible numbers. And
these figures, Madam Speaker, will only increase once the FTA has been
approved and American businesses no longer face heavy tariffs and other
artificial barriers to trade.
But in addition to the potential economic growth stemming from this
agreement, Panama is a key strategic ally in the region. Ever since the
Panama Canal was completed a century ago, Panama's importance to the
U.S. has only increased as a major transportation route, with two-
thirds of its traffic consisting of shipments between our west and east
coast. For these reasons--expanded exports, increased jobs, closer ties
with a strategic ally--I hope that my colleagues on both sides of the
aisle will pass this free trade agreement.
Madam Speaker, we have been waiting for this agreement for far too
long, years of lost opportunities. But now we have a chance to repair
that damage. In the past year alone, Panama's economy grew 6.2 percent,
making it one of the fastest growing in Latin America and an expanding
opportunity for American businesses. Currently, U.S. industrial exports
face an average tariff of 7 percent, but some tariffs go as high as
over 80 percent. But once this agreement goes into effect, 87 percent
of all U.S. goods exported to Panama will become duty-free immediately.
[[Page H6757]]
In the past 4 years since the trade agreement was signed, American
companies have paid millions upon millions of dollars in tariffs to the
Panamanian Government. These dollars are needlessly spent by U.S.
businesses to foreign governments when they could have been paid here
in the United States to beef up our businesses.
Madam Speaker, I rise in strong support of the U.S.-Panama Free Trade
Agreement.
We have been waiting to vote on this agreement since it was first
signed, which means years of lost opportunities.
But now we have a chance to repair that damage.
In the past year alone, Panama's economy grew 6.2 percent, making it
one of the fast growing in Latin America and an expanding opportunity
for American exporters.
Panama is already among Miami-Dade county's top 25 trading partners
and Florida as a whole ranks number one among the 50 states in exports
to that country.
These figures will only increase once the FTA has been approved and
American businesses no longer face heavy tariffs and other artificial
barriers to trade.
Currently, U.S. industrial exports face an average tariff of 7
percent, with some tariffs as high as 81 percent.
Once this agreement goes into effect, 87 percent of all U.S. goods
exported to Panama will become duty-free immediately.
In the past 4 years since the U.S.-Panama Free Trade Agreement was
signed, American companies have paid millions upon millions of dollars
in tariffs to the Panamanian government.
Those are dollars needlessly spent by U.S. businesses, which they
could have used for investments and expansion here in the U.S. instead
of paying fees to a foreign government.
Approval of the U.S.-Panama FTA will eliminate this transfer of
wealth, increase U.S. exports, and create new jobs here at home that so
many Americans are desperately searching for.
The agreement also has many other provisions of importance to U.S.
businesses, especially strengthening intellectual property rights,
which are under assault around the world.
In addition to the potential economic growth stemming from this
agreement, Panama is a key strategic ally in the region.
Ever since the Panama Canal was completed a century ago, Panama's
importance to the U.S. has only increased as a major transportation
route with two-thirds of its traffic consisting of shipments between
our west and east coasts.
For these many reasons--expanded exports, increased jobs, and closer
ties with a strategic ally--I strongly urge my colleagues on both sides
of the aisle to vote in favor of the U.S.-Panama Free Trade Agreement.
Mr. LEVIN. Could I ask how much time is remaining?
The SPEAKER pro tempore. The gentleman from Michigan (Mr. Levin) has
26 minutes remaining, the gentleman from Ohio has 23 minutes remaining,
and the gentleman from Michigan (Mr. Camp) has 21 minutes remaining.
Mr. LEVIN. I now yield 2\1/2\ minutes to the distinguished gentleman
from Texas (Mr. Cuellar).
Mr. CUELLAR. By leveling the playing field with 21st century trade
deals with Panama, Colombia, and South Korea, we will increase American
exports abroad and spur domestic job creation. Now, more than ever, the
U.S. needs trade to fuel growth, create jobs, and preserve America's
position as a leader of the greater economy.
I represent a border region of Texas where trade is part of daily
life. I understand the importance of trade to my hometown's value in
supporting the local economy. As the chairman of the Pro-Trade Caucus
and representing a trade-centric district, I support all three pending
trade agreements.
Today, trade supports over 50 million American jobs, according to the
U.S. Department of the Treasury. These pending FTAs would create an
additional quarter of a million new jobs in industries like
manufacturing, agriculture, and service sectors, according to the U.S.
Chamber of Commerce. Last week, The Wall Street Journal reported the
FTAs could boost U.S. exports by $13 billion annually. To grow, we must
be an export powerhouse.
The U.S.-Panama FTA would remove barriers to American goods entering
into Panama. According to the U.S. Trade Representative, over 87
percent of U.S. exports of consumer and industrial products to Panama
will become duty-free immediately, with the remaining tariffs phased
out over the following 10 years.
The U.S. International Trade Commission estimates passage of the
U.S.-Korea Free Trade Agreement would increase U.S. exports by over $10
billion and create 70,000 jobs. According to the National Association
of Manufacturers, the U.S. exports to Korea would grow by more than
one-third. The U.S.-Colombia FTA would expand exports by more than $1.1
billion with the tariff reductions, according to the International
Trade Commission. Without the U.S.-Colombia FTA, the U.S. cotton
exporters to Colombia will have unnecessarily paid over $14 million in
tariffs.
Lawmakers have a choice. Pass the deals or allow America to lose the
opportunity to emerge in the constantly growing global market. Pass the
deals or miss the chance to create 250,000 jobs. Pass the deals or
allow American businesses to sit on the sidelines while foreign
countries forge ahead.
America must pass the Colombia, Korea, and Panama trade deals, or we
will fall behind.
{time} 2130
Mr. KUCINICH. Madam Speaker, I yield 1 minute to the gentlelady from
New York, who has made a real impact in this Congress in her first
year, Representative Hochul.
Ms. HOCHUL. I thank my colleague from Ohio.
I'm here to stand up on behalf of the working men and women of the
26th District of New York, people like the woman at the Buffalo Airport
this morning who served me my energy drink as I boarded the flight. She
told me she works at the airport because she lost her job of 23 years
at a textile factory in downtown Buffalo. First the jobs went south,
then they went overseas, jobs gone forever. As I left for my flight she
said to me, Keep fighting for our jobs. Don't forget us. Well, I won't
forget her. If I thought any of these fair trade agreements would help
that woman and help others in my district, I'd be all in favor. But in
western New York, we know better. We were promised prosperity with
earlier trade agreements, but while the companies became more
prosperous, the jobs were sucked away from our community to foreign
shores, lost forever.
As they say in the immortal song made famous by The Who, ``we won't
get fooled again.'' I encourage my colleagues to oppose these
agreements.
Mr. CAMP. At this time, I reserve the balance of my time.
Mr. LEVIN. I yield 1 minute to the gentlelady from Wisconsin (Ms.
Baldwin).
Ms. BALDWIN. Madam Speaker, I rise today in opposition to this free
trade agreement with Panama and to the two others that we are
considering this week with South Korea and Colombia.
Trade agreements should be in the best interests of our Nation and
its people, but sadly this has not been the case with the past free
trade agreements. Have some of our wealthiest corporations profited
from them? Indeed. But the rest of America, especially the middle
class, has struggled with job loss, closed factories, and economic and
emotional anguish across the country.
I hear from Wisconsin families every day that are struggling
mightily, struggling to pay the mortgage, put food on the table, and
send their kids to college, especially during these uncertain economic
times. The solution is to put our people back to work and preserve
American jobs.
When done right, trade agreements can help bolster our manufacturing
and high-skilled technology industries and create jobs as they increase
exports and help our economy recover. Done wrong, trade agreements send
these same jobs offshore, leaving Americans out of work. Unfortunately,
I believe these trade agreements with South Korea, Panama, and Colombia
will exacerbate the U.S. trade deficit and further erode our
manufacturing base.
Mr. CAMP. I continue to reserve the balance of my time.
Mr. KUCINICH. Madam Speaker, I yield myself 1 minute.
The U.S.-Panama Free Trade Agreement requires the U.S. to waive Buy
America requirements for all Panamanian incorporated firms and even
many Chinese and other foreign firms incorporated in Panama that are
there to exploit the tax system. This means that work that should go to
U.S. workers can be offshored because of the
[[Page H6758]]
rules which forbid Buy America preferences requiring U.S. employees to
perform contract work by a Federal agency in the Federal procurement
process. According to Global Trade Watch, the U.S. would be waiving Buy
America requirements for trillions in U.S. Government contracts for any
corporations established in Panama, and in exchange would get almost no
new procurement contract opportunities in Panama for U.S. companies.
This trade deal is in the NAFTA tradition of weakening offshore
protections, limiting financial service regulations, banning Buy
America procurement preferences, limiting environmental, food, and
product safety safeguards, and undermining U.S. workers and our
economy.
We have to defeat this. We have to be able to Buy America or it's
``bye bye America.''
Mr. CAMP. Madam Speaker, I understand that I have 21 minutes
remaining.
I yield 1 minute to the distinguished gentleman from California (Mr.
Bilbray).
Mr. BILBRAY. Madam Speaker, first of all, this is not offshore, this
proposal is next door. These are our neighbors.
Second of all, this is not just about great opportunities
economically for America, but we hear people talk about the
environment. When you recycle, so-called ``replace'' your cell phones,
where do you think they go? They get rebuilt and they get shipped down
to our neighbors to the south so they can have the economic
opportunities, they can have the learning opportunities. This is the
kind of cooperation we want to see in our hemisphere.
But to attack Panama, which is the leader of showing how they can
stimulate an economy, with almost 10 percent growth, to attack Panama,
allowing the working class access to recycled material, environmentally
friendly but economically upper lifting, to attack that kind of
agreement on this floor and then say that you're for the environment
and you're for helping the poor, don't come to this floor and say you
care about the environment, you care about the needy, and you care
about our neighbors and oppose this proposal.
Mr. LEVIN. Madam Speaker, could I inquire as to how much time I have
remaining?
The SPEAKER pro tempore. The gentleman from Michigan (Mr. Levin) has
22\1/2\ minutes remaining.
Mr. LEVIN. I yield myself 2\1/2\ minutes.
I voted against NAFTA. I led the battle against CAFTA on this floor.
I did so because in those agreements there were not enforceable
international worker rights. We face this in Panama.
As originally negotiated, there was not the implementation of those
rights in Panama. They had certain provisions relating to newer
businesses. They also had restrictions in terms of trade zones. And
what we said to the Panamanians was, bring your laws up to
international standards. That's exactly what they did. This is the
opposite, in that respect, of NAFTA and CAFTA. So it is not accurate to
say this is a NAFTA-type agreement. It simply is not.
In terms of government procurement, we want access for our companies
and workers to the construction that's going on in the Panama Canal
zone. It's vital for our companies. And so essentially in this
agreement there is a provision that we can have access there, with
limits, as they can, with limits, to us. It's mutually beneficial.
Lastly, there has been reference to the tax haven. Panama was a tax
haven, one of the most striking in the world. And we insisted that they
enact a TIEA. They've done exactly that. So if we take these one at a
time, this is an agreement that meets our standards and changes the
agreement from the way it was negotiated by the Bush administration. We
should support this agreement.
{time} 2140
Mr. KUCINICH. I yield myself 1 minute.
Panama is one the world's worst tax havens, allowing rich U.S.
individuals and corporations to skirt their responsibility to pay taxes
that are vital to the local communities that depend on these revenues.
This agreement does nothing to address this issue. At a time when
austerity measures are being proposed to balance the budget, we should
not be considering a free trade agreement that fails to deal with an
issue critical to addressing our deficit.
This free trade agreement includes provisions that undermine our own
laws to combat tax haven activity. Public Citizen's Global Trade Watch
reports that the ``FTA's Services, Financial Services and Investment
Chapters include provisions that forbid limits on transfers of money
between the U.S. and Panama. Yet, such limits are the strongest tools
that the U.S. has to enforce policies aimed at stopping international
tax avoidance.''
The agreement fails to hold Panama and corporations accountable for
tax evasion. The agreement only requires Panama to stop refusing to
provide information to U.S. officials in specific cases if U.S.
officials know to inquire who's telling. There's a significant
exception that allows Panama to reject requests for information if it's
contrary to the national interest.
Do not reward corporations who offshore jobs and practice
international tax avoidance. Do not hurt American workers and the
economy. Defeat this trade agreement.
The SPEAKER pro tempore. Pursuant to clause 1(c) of rule XIX, further
consideration of H.R. 3079 is postponed.
____________________