[Congressional Record (Bound Edition), Volume 157 (2011), Part 11]
[House]
[Pages 15181-15195]
[From the U.S. 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

[[Page 15182]]

       (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 
     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

[[Page 15183]]

     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, 
     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.--

[[Page 15184]]

       (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 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.--

[[Page 15185]]

       (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, 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:

[[Page 15186]]

       (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.
       (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

[[Page 15187]]

     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 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

[[Page 15188]]

     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 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

[[Page 15189]]

     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. 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.

[[Page 15190]]

       (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 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

[[Page 15191]]

     $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.
  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

[[Page 15192]]

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.
  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

[[Page 15193]]

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. 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.
  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.

[[Page 15194]]

  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 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

[[Page 15195]]

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.

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