[House Report 105-386]
[From the U.S. Government Publishing Office]



105th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES

 1st Session                                                    105-386
_______________________________________________________________________


 
  PROVIDING FOR THE CONSIDERATION OF H.R. 2621, THE RECIPROCAL TRADE 
                   AGREEMENT AUTHORITIES ACT OF 1997

                                _______
                                

  November 6, 1997.--Referred to the House Calendar and ordered to be 
                                printed

_______________________________________________________________________


    Mr. Dreier, from the Committee on Rules, submitted the following

                              R E P O R T

                       [To accompany H. Res. 309]

    The Committee on Rules, having had under consideration 
House Resolution 309, by a record vote of 6-4, report the same 
to the House with the recommendation that the resolution be 
adopted.

               brief summary of provisions of resolution

    The resolution provides for the consideration of H.R. 2621, 
the ``Reciprocal Trade Agreement Authorities Act of 1997,'' 
under a closed rule. The rule provides two hours of debate 
divided equally between the chairman and ranking minority 
member of the Committee on Ways and Means.
    The rule provides that the amendment in the nature of a 
substitute recommended by the Committee on Ways and Means now 
printed in the bill, modified by the amendments printed in this 
report, be considered as adopted.
    The rule waives all points of order against the bill, as 
amended. Finally, the rule provides for one motion to recommit, 
with or without instructions.

                            committee votes

    Pursuant to clause 2(l)(2)(B) of House rule XI the results 
of each rollcall vote on an amendment or motion to report, 
together with the names of those voting for and against, are 
printed below:

Rules Committee Rollcall No. 77

    Date: November 6, 1997.
    Measure: H.R. 2621, Reciprocal Trade Agreement Authorities 
Act of 1997.
    Motion by: Mr. Moakley.
    Summary of motion: To make in order the Boswell amendment, 
to ensure effective child labor laws in countries with which 
the U.S. enters into trade agreements.
    Results: Rejected 3-5.
    Vote by Members: Drier--Nay; McInnis--Nay; Hastings--Nay; 
Myrick--Nay; Moakley--Yea; Frost--Yea; Hall--Yea; Solomon--Nay.

Rules Committee Rollcall No. 78

    Date: November 6, 1997.
    Measure: H.R. 2621, Reciprocal Trade Agreement Authorities 
Act of 1997.
    Motion by: Mr. Dreier.
    Summary of motion: To order the rule reported.
    Results: Adopted 6-4.
    Vote by Members: Dreier--Yea; Pryce--Yea; McInnis--Yea; 
Hastings--Yea; Myrick--Yea; Moakley--Nay; Frost--Nay; Hall--
Nay; Slaughter--Nay; Solomon--Yea.

        SUMMARY OF AMENDMENTS CONSIDERED AS ADOPTED TO H.R. 2621

    New provision to establish a ``Special 301'' procedure for 
identifying countries that deny market access for United States 
agricultural products.
    New Title III deletes ``repeal of the special rule for 
rental use of vacation homes, etc., for less than fifteen 
days'' and replaces with a revenue offset which clarifies the 
time when an employer may deduct accrued severance pay. Under 
the Internal Revenue Code, accrued severance pay which is 
deferred compensation may not be deducted until paid. In a 
recent case, Schmidt Baking Co., Inc., the Tax Court rule that 
the employer's purchase of a letter of credit to guarantee 
vacation and severance pay would be treated as a payment of the 
accrued pay and allowed the employer a deduction. This result 
is inconsistent with Congressional intent and would be 
overturned by the revenue offset provision.
    New provision to Section 102(b)(7)(B) stating that nothing 
in this subsection is to be construed to authorize inclusion in 
an implementing bill or in an agreement to an implementing bill 
provisions that would restrict the autonomy of the United 
States in the listed areas.
    Technical changes.

         TEXT OF AMENDMENTS CONSIDERED AS ADOPTED TO H.R. 2621

    In section 102(b)(6), in the matter preceding subparagraph 
(A), insert ``of agricultural commodities'' after ``United 
States exports''.
    In section 102(b)(7)(B), add the following at the end of 
the subparagraph: ``Nothing in this subparagraph shall be 
construed to authorize inclusion in an implementing bill under 
this Act or in an agreement subject to an implementing bill 
under this Act provisions that would restrict the autonomy of 
the United States in these areas.''.
    In section 103(a)(1), move the indentation of the text that 
reads ``The President shall notify the Congress of the 
President's intention to enter into an agreement under this 
subsection.'' 2 ems to the left.
    In section 105(b)(1), amend the paragraph caption to read 
as follows:
          (1) For lack of notice or consultations.--
    In section 105(b)(1), amend subparagraph (B) to read as 
follows:
                  (B) Procedural disapproval resolution.--For 
                purposes of this paragraph, the term 
                ``procedural disapproval resolution'' means a 
                resolution of either House of Congress, the 
                sole matter after the resolving clause of which 
                is as follows: ``That the President has failed 
                or refused to notify or consult (as the case 
                may be) with Congress in accordance with 
                section 104 or 105 of the Reciprocal Trade 
                Agreement Authorities Act of 1997 on 
                negotiations with respect to __________ and, 
                therefore, the trade authorities procedures 
                under the Act shall not apply to any 
                implementing bill submitted with respect to 
                that trade agreement.'', with the blank space 
                being filled with a description of the trade 
                agreement with respect to which the President 
                is considered to have failed or refused to 
                notify or consult.
    In section 103(c), amend paragraph (5)(A) to read as 
follows:
          (5) Extension disapproval resolutions.--(A) For 
        purposes of paragraph (1), the term ``extension 
        disapproval resolution'' means a resolution of either 
        House of the Congress, the sole matter after the 
        resolving clause of which is as follows: ``That the 
        ______ disapproves the request of the President for the 
        extension, under section 103(c)(1)(B)(i) of 
theReciprocal Trade Agreement Authorities Act of 1997, of the trade 
authorities procedures under that Act to any implementing bill 
submitted with respect to any trade agreement entered into under 
section 103(b) of that Act after September 30, 2001.'', with the blank 
space being filled with the name of the resolving House of the 
Congress.
    In section 108(a), amend paragraph (1) to read as follows:
          (1) Implementing bill.--Section 151(b)(1) (19 U.S.C. 
        2191(b)(1)) is amended by striking ``, section 
        1103(a)(1) of the Omnibus Trade and Competitiveness Act 
        of 1988,''.
    Insert the following after section 107 and redesignate the 
succeeding sections accordingly:

SEC. 108. IDENTIFICATION OF COUNTRIES THAT DENY MARKET ACCESS FOR 
                    UNITED STATES AGRICULTURAL PRODUCTS.

    (a) Identification Required.--
          (1) In general.--Chapter 8 of title I of the Trade 
        Act of 1974 is amended by adding at the end the 
        following:

``SEC. 183. IDENTIFICATION OF COUNTRIES THAT DENY MARKET ACCESS FOR 
                    AGRICULTURAL PRODUCTS.

    ``(a) In General.--Not later than the date that is 30 days 
after the date on which the annual report is required to be 
submitted to Congressional committees under section 181(b), the 
United States Trade Representative (hereafter in this section 
referred to as the `Trade Representative') shall identify--
          ``(1) those foreign countries that--
                  ``(A) deny fair and equitable market access 
                to United States agricultural products, or
                  ``(B) apply unjustified sanitary or 
                phytosanitary standards for imported 
                agricultural products from the United States; 
                and
          ``(2) those foreign countries identified under 
        paragraph (1) that are determined by the Trade 
        Representative to be priority foreign countries.
    ``(b) Special Rules for Identifications.--
          ``(1) Criteria.--In identifying priority foreign 
        countries under subsection (a)(2), the Trade 
        Representative shall only identify those foreign 
        countries--
                  ``(A) that engage in or have the most onerous 
                or egregious acts, policies, or practices 
thatdeny fair and equitable market access to United States agricultural 
products,
                  ``(B) whose acts, policies, or practices 
                described in subparagraph (A) have the greatest 
                adverse impact (actual or potential) on the 
                relevant United States products, and
                  ``(C) that are not--
                          ``(i) entering into good faith 
                        negotiations, or
                          ``(ii) making significant progress in 
                        bilateral or multilateral negotiations,
                to provide fair and equitable market access to 
                United States agricultural products.
          ``(2) Consultation and consideration requirements.--
        In identifying priority foreign countries under 
        subsection (a)(2), the Trade Representative shall--
                  ``(A) consult with the Secretary of 
                Agriculture and other appropriate officers of 
                the Federal Government, and
                  ``(B) take into account information from such 
                sources as may be available to the Trade 
                Representative and such information as may be 
                submitted to the Trade Representative by 
                interested persons, including information 
                contained in reports submitted under section 
                181(b) and petitions submitted under section 
                302.
          ``(3) Factual basis requirement.--The Trade 
        Representative may identify a foreign country under 
        subsection (a)(1) only if the Trade Representative 
        finds that there is a factual basis for the denial of 
        fair and equitable market access as a result of the 
        violation of international law or agreement, or the 
        existence of barriers, referred to in subsection (d).
          ``(4) Consideration of historical factors.--In 
        identifying foreign countries under paragraphs (1) and 
        (2) of subsection (a), the Trade Representative shall 
        take into account--
                  ``(A) the history of agricultural trade 
                relations with the foreign country, including 
                any previous identification under subsection 
                (a)(2), and
                  ``(B) the history of efforts of the United 
                States, and the response of the foreign 
                country, to achieve fair and equitable market 
                access for United States agricultural products.
      ``(c) Revocations and Additional Identifications.--
          ``(1) Authority to act at any time.--If information 
        available to the Trade Representativeindicates that 
such action is appropriate, the Trade Representative may at any time--
                  ``(A) revoke the identification of any 
                foreign country as a priority foreign country 
                under this section, or
                  ``(B) identify any foreign country as a 
                priority foreign country under this section.
          ``(2) Revocation reports.--The Trade Representative 
        shall include in the semiannual report submitted to the 
        Congress under section 309(3) a detailed explanation of 
        the reasons for the revocation under paragraph (1) of 
        the identification of any foreign country as a priority 
        foreign country under this section.
    ``(d) Definitions.--For purposes of this section, a foreign 
country denies fair and equitable market access if the foreign 
country effectively denies access to a market for a product 
through the use of laws, procedures, practices, or regulations 
which--
          ``(1) violate provisions of international law or 
        international agreements to which both the United 
        States and the foreign country are parties, or
          ``(2) constitute discriminatory nontariff trade 
        barriers.
    ``(e) Publication.--The Trade Representative shall publish 
in the Federal Register a list of foreign countries identified 
under subsection (a) and shall made such revisions to the list 
as may be required by reason of the action under subsection 
(c).
    ``(f) Annual Report.--The Trade Representative shall, not 
later than the date by which countries are identified under 
subsection (a), transmit to the Committee on Ways and Means and 
the Committee on Agriculture of the House of Representatives 
and the Committee on Finance and the Committee on Agriculture, 
Nutrition, and Forestry of the Senate, a report on the actions 
taken under this section during the 12 months preceding such 
report, and the reasons for such actions, including a 
description of progress made in achieving fair and equitable 
market access for United States agricultural products.''.
          (2) Clerical amendment.--The table of contents for 
        the Trade Act of 1974 is amended by inserting after the 
        item relating to section 182 the following:

``Sec. 183. Identification of countries that deny market access for 
          agricultural products.''.

    (b) Investigations.--
          (1) In general.--Subparagraph (A) of section 
        302(b)(2) of the Trade Act of 1974 (19 U.S.C. 
        2412(b)(2)) is amended by inserting ``or 
183(a)(2)''after ``section 182(a)(2)'' in the matter preceding clause 
(i).
          (2) Conforming amendment.--Subparagraph (D) of 
        section 302(b)(2) of such Act is amended by inserting 
        ``concerning intellectual property rights that is'' 
        after ``any investigation''.
    Strike title III and insert the following:

     TITLE III--CLARIFICATION OF WHETHER SEVERANCE PAY IS DEFERRED 
                           COMPENSATION, ETC.

SEC. 301. CLARIFICATION OF WHETHER SEVERANCE PAY IS DEFERRED 
                    COMPENSATION, ETC.

    (a) In General.--Subsection (a) of section 404 of the 
Internal Revenue Code of 1986 is amended by adding at the end 
the following new paragraph:
          ``(11) Determinations relating to severance pay.--For 
        purposes of determining under this section--
                  ``(A) whether severance pay of an employee is 
                deferred compensation, and
                  ``(B) when severance pay which is deferred 
                compensation is paid,
        no amount shall be treated as received by the employee, 
        or paid, until it is actually received by the 
        employee.''
    (b) Effective Date.--
          (1) In general.--The amendment made by this section 
        shall apply to taxable years ending after October 8, 
        1997.
          (2) Change in method of accounting.--In the case of 
        any taxpayer required by this section to change its 
        method of accounting for its first taxable year ending 
        after October 8, 1997--
                  (A) such change shall be treated as initiated 
                by the taxpayer,
                  (B) such change shall be treated as made with 
                the consent of the Secretary of the Treasury, 
                and
                  (C) the net amount of the adjustments 
                required to be taken into account by the 
                taxpayer under section 481 of the Internal 
                Revenue Code of 1986 shall be taken into 
                account in such first taxable year.

                                
