[House Report 107-323]
[From the U.S. Government Publishing Office]



107th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 1st Session                                                    107-323

======================================================================



 
 PROVIDING FOR CONSIDERATION OF H.R. 3005, BIPARTISAN TRADE PROMOTION 
                         AUTHORITY ACT OF 2001

                                _______
                                

  December 5, 2001.--Referred to the House Calendar and ordered to be 
                                printed

                                _______
                                

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

                              R E P O R T

                       [To accompany H. Res. 306]

    The Committee on Rules, having had under consideration 
House Resolution 306, by a record vote of 7 to 3, report the 
same to the House with the recommendation that the resolution 
be adopted.

                 summary of provisions of the resolution

    The resolution provides for the consideration in the House 
of H.R. 3005, the Bipartisan Trade Promotion Authority Act of 
2001, under a closed rule. The rule provides one hour of debate 
equally divided and controlled by the chairman and ranking 
minority member of the Committee on Ways and Means. The rule 
waives all points of order against consideration of the bill.
    The rule provides that the amendment recommended by the 
Committee on Ways and Means now printed in the bill, modified 
by the amendment printed in this report, shall be considered as 
adopted.
    Finally, the rule provides one motion to recommit with or 
without instructions.
    The waiver of all points of order against consideration of 
the bill includes a waiver of section 306 of the Congressional 
Budget Act of 1974 (prohibiting consideration of legislation 
within the Budget Committee's jurisdiction, unless reported by 
the Budget Committee) because section 8(b) of the bill includes 
additional reporting requirements which fall under the 
jurisdiction of the Committee on the Budget.

                            committee votes

    Pursuant to clause 3(b) of House rule XIII the results of 
each record vote on an amendment or motion to report, together 
with the names of those voting for and against, are printed 
below:

Rules Committee record vote No. 59

    Date: December 5, 2001.
    Measure: H.R. 3005, Bipartisan Trade Promotion Authority 
Act of 2001.
    Motion by: Mr. Frost.
    Summary of motion: Make in order the Rangel amendment in 
the nature of a substitute. The amendment directs the President 
to negotiate binding provisions in such agreements providing 
for countries to implement in their laws and effectively 
enforce the five core, internationally-recognized labor 
standards. Requires the creation of a work program in FTAs that 
would provide technical assistance and positive incentives for 
each country to improve its labor standards. Directs that the 
labor provisions in any FTA would be enforceable in the same 
way as all other provisions in the agreement. Requires that 
when the Administration uses an enforcement remedy, it 
demonstrates that the remedy was effective to promote 
compliance on a case-by-case basis and in relation to other 
enforcement actions. Establishes a labor working group at the 
WTO, strengthens the WTO's Committee on Trade and Environment 
and gives it a greater role in reviewing trade rules. 
Strengthens the WTO's Committee on Trade and Environment and 
gives it a greater role in reviewing trade rules. Ensures that 
countries would not be penalized for taking actions in 
accordance with a multilateral environmental agreement (MEA). 
Provides protections for investors, while also ensuring that 
such protections do not interfere with legitimate health, 
environmental and other regulations. Provides for a dispute 
settlement system that is transparent and open to the public. 
Directs negotiators to require regional and bilateral 
negotiating partners to enforce their own environmental laws. 
Establishes rules preventing such countries from waiving their 
environmental standards in order to gain a competitive 
advantage. Provides for the creation of a work program in FTAs 
that would provide technical assistance and positive incentives 
for each country to improve its environmental standards. 
Establishes a procedure for a structured biennial review of 
ongoing trade negotiations subject to a fast track. Provides 
that prior to the imminent completion of the negotiations, a 
group of Congressional Trade Advisors would have to concur with 
the President's certification that the negotiating objectives 
have been substantially satisfied in order for the implementing 
legislation to be considered under fast track authority.
    Results: Defeated 3 to 7.
    Vote by Members: Linder--Nay; Pryce--Nay; Diaz-Balart--Nay; 
Hastings (WA)--Nay; Myrick--Nay; Sessions--Nay; Frost--Yea; 
Hall--Yea; Hastings (FL)--Yea; Dreier--Nay.

Rules Committee record vote No. 60

    Date: December 5, 2001.
    Measure: H.R. 3005, Bipartisan Trade Promotion Authority 
Act of 2001.
    Motion by: Mr. Linder.
    Summary of motion: To report the resolution.
    Results: Adopted 7 to 3.
    Vote by Members: Linder--Yea; Pryce--Yea; Diaz-Balart--Yea; 
Hastings (WA)--Yea; Myrick--Yea; Sessions--Yea; Frost--Nay; 
Hall--Nay; Hastings (FL)--Nay; Dreier--Yea.

            summary of amendment to be considered as adopted

    (Summary derived from information provided by sponsor.)
    Thomas--Manager's Amendment. Establishes a negotiating 
objective that the Administration strive to ensure that parties 
to trade agreements do not weaken or reduce their current 
health, worker, safety, or environmental standards. Recognizes 
that U.S. law on the whole provides a high level of protection 
for investment consistent with or greater than the level 
required by international law and directs the USTR to secure 
for investors important rights comparable to those that would 
be available under U.S. legal principles and practices. Directs 
the Administration to establish an appellate mechanism to 
correct manifestly erroneous interpretations of law. Directs 
the Administration to establish public access to investor-state 
proceedings and increased transparency. Clarifies that no 
retaliation can be authorized based on one part's exercise of 
reasonable discretion with respect to labor and environmental 
regulation. Changes the ``promotion of certain priorities'' 
section and directs the Administration to seek to establish a 
consultative mechanism to examine the trade consequences of 
unanticipated currency movements and to scrutinize whether a 
foreign government is engaged in a pattern of manipulating its 
currency to promote an artificial competitive advantage in 
international trade. Removes import sensitive agriculture, such 
as citrus and sugar, from proclamation authority and requires 
identification of these products, an ITC evaluation, and formal 
notification of Congress if the Administration or a trading 
partner decides to seek negotiations on any import sensitive 
agriculture product. Requires consultations on whether import 
sensitive agriculture faces unjustified sanitary or 
phytosanitary restrictions. Grants special identification and 
consultations with Ways and Means for products facing tariff 
disparities and an assessment of whether negotiations will 
address the disparities. Increases the role of Congress by 
providing a procedure which can be commenced by any Member, 
whereby TPA can be withdrawn expeditiously with respect to one 
or more agreements. The provision also requires the 
Administration to meet with the Congressional oversight Group 
before the initiation of the negotiation, and at any other time 
that group may request. Explanations for withdrawal of TPA 
include failure to consult or meet and failure of the agreement 
to make progress in achieving the purposes, policies, 
priorities, and objectives established in TPA. Expresses that 
it is Sense of congress to ensure adequate staffing in the 
Committees of primary jurisdiction over trade.

                text of amendment considered as adopted

  Page 4, line 13, strike ``and''.
  Page 4, line 18, strike the period and insert ``; and''.
  Page 4, insert the following after line 18:
          (7) to seek provisions in trade agreements under 
        which parties to those agreements strive to ensure that 
        they do not weaken or reduce the protections afforded 
        in domestic environmental and labor laws as an 
        encouragement for trade.
  Page 5, line 23, strike ``by'' and insert ``and, recognizing 
that United States law on the whole provides a high level of 
protection for investment, consistent with or greater than the 
level required by international law, to secure for investors 
important rights comparable to those that would be available 
under United States legal principles and practice, by''.
  Page 6, line 12, strike ``and''.
  Page 6, line 17, add ``and'' after the semicolon.
  Page 6, line 20, strike ``and''.
  Page 6, strike lines 21 and 22.
  Page 6, insert the following after line 22:
                  (G) providing an appellate or similar review 
                mechanism to correct manifestly erroneous 
                interpretations of law; and
                  (H) ensuring the fullest measure of 
                transparency in the dispute settlement 
                mechanism, to the extent consistent with the 
                need to protect information that is classified 
                or business confidential, by--
                          (i) ensuring that all requests for 
                        dispute settlement are promptly made 
                        public;
                          (ii) ensuring that--
                                  (I) all proceedings, 
                                submissions, findings, and 
                                decisions are promptly made 
                                public;
                                  (II) all hearings are open to 
                                the public; and
                          (iii) establishing a mechanism for 
                        acceptance of amicus curiae submissions 
                        from businesses, unions, and 
                        nongovernmental organizations.
  Page 18, line 23, insert after ``resources'' the following: 
``and no retaliation may be authorized based on the exercise of 
these rights or the right to establish domestic labor standards 
and levels of environmental protection''.
  Page 24, line 15, strike ``and''.
  Page 24, line 24, strike the period and insert ``; and''.
  Page 24, add the following after line 24:
          (12) seek to establish consultative mechanisms among 
        parties to trade agreements to examine the trade 
        consequences of significant and unanticipated currency 
        movements and to scrutinize whether a foreign 
        government engaged in a pattern of manipulating its 
        currency to promote a competitive advantage in 
        international trade.
  Page 28, line 4, strike ``or''.
  Page 28, insert the following after line 4:
                  (B) notwithstanding paragraph (6), reduces 
                the rate of duty below that applicable under 
                the Uruguay Round Agreements, on any 
                agricultural product which was the subject of 
                tariff reductions by the United States as a 
                result of the Uruguay Round Agreements, for 
                which the rate of duty, pursuant to such 
                Agreements, was reduced on January 1, 1995, to 
                a rate which was not less than 97.5 percent of 
                the rate of duty that applied to such article 
                on December 31, 1994; or
  Page 28, line 5, strike ``(B)'' and insert ``(C)''.
  Page 30, line 4, strike ``(1)(B) and (2) through (5)'' and 
insert ``(1)(B), (2)(A), (2)(C), and (3) through (5)''.
  Page 38, lines 11 and 12, strike ``(b) Negotiations Regarding 
Agriculture.--Before initiating'' and insert
  (b) Negotiations Regarding Agriculture.--
          (1) In general.--Before initiating
  Page 39, insert the following after line 5 and redesignate 
the succeeding subsections accordingly:
          (2) Special consultations on import sensitive 
        products.--(A) Before initiating negotiations with 
        regard to agriculture, and, with respect to the Free 
        Trade Area for the Americas and negotiations with 
        regard to agriculture under the auspices of the World 
        Trade Organization, as soon as practicable after the 
        enactment of this Act, the United States Trade 
        Representative shall--
                  (i) identify those agricultural products 
                subject to tariff reductions by the United 
                States as a result of the Uruguay Round 
                Agreements, for which the rate of duty was 
                reduced on January 1, 1995, to a rate which was 
                not less than 97.5 percent of the rate of duty 
                that applied to such article on December 31, 
                1994;
                  (ii) consult with 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 
                concerning--
                          (I) whether any further tariff 
                        reductions on the products identified 
                        under clause (i) should be appropriate, 
                        taking into account the impact of any 
                        such tariff reduction on the United 
                        States industry producing the product 
                        concerned; and
                          (II) whether the products so 
                        identified face unjustified sanitary or 
                        phytosanitary restrictions, including 
                        those not based on scientific 
                        principles in contravention of the 
                        Uruguay Round Agreements;
                  (iii) request that the International Trade 
                Commission prepare an assessment of the 
                probable economic effects of any such tariff 
                reduction on the United States industry 
                producing the product concerned and on the 
                United States economy as a whole; and
                  (iv) upon complying with clauses (i), (ii), 
                and (iii), notify 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 of those 
                products identified under clause (i) for which 
                the Trade Representative intends to seek tariff 
                liberalization in the negotiations and the 
                reasons for seeking such tariff liberalization.
          (B) If, after negotiations described in subparagraph 
        (A) are commenced--
                  (i) the United States Trade Representative 
                identifies any additional agricultural product 
                described in subparagraph (A)(i) for tariff 
                reductions which were not the subject of a 
                notification under subparagraph (A)(iv), or
                  (ii) any additional agricultural product 
                described in subparagraph (A)(i) is the subject 
                of a request for tariff reductions by a party 
                to the negotiations,
        the Trade Representative shall, as soon as practicable, 
        notify the committees referred to in subparagraph 
        (A)(iv) of those products and the reasons for seeking 
        such tariff reductions.
  (c) Negotiations Regarding Textiles.--Before initiating or 
continuing negotiations the subject matter of which is directly 
related to textiles and apparel products with any country, the 
President shall assess whether United States tariffs on textile 
and apparel products that were bound under the Uruguay Round 
Agreements are lower than the tariffs bound by that country and 
whether the negotiation provides an opportunity to address any 
such disparity. The President shall consult with the Committee 
on Ways and Means of the House of Representatives and the 
Committee on Finance of the Senate concerning the results of 
the assessment, whether it is appropriate for the United States 
to agree to further tariff reductions based on the conclusions 
reached in the assessment, and how all applicable negotiating 
objectives will be met.
  Page 42, line 21, insert after ``Congress'' the following: 
``, on a day on which both Houses of Congress are in 
session,''.
  Page 45, line 9, insert ``or trade agreements'' after 
``agreement''.
  Page 45, lines 14 and 16, strike ``that trade agreement'' and 
insert ``such trade agreement or agreements''.
  Page 45, strike line 17 and all that follows through page 46, 
line 9 and insert the following:
                  (B) Procedural disapproval resolution.--(i) 
                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 in accordance 
                with the Bipartisan Trade Promotion Authority 
                Act of 2001 on negotiations with respect to 
                ____________ and, therefore, the trade 
                authorities procedures under that Act shall not 
                apply to any implementing bill submitted with 
                respect to such trade agreement or 
                agreements.'', with the blank space being 
                filled with a description of the trade 
                agreement or agreements with respect to which 
                the President is considered to have failed or 
                refused to notify or consult.
                  (ii) For purposes of clause (i), the 
                President has ``failed or refused to notify or 
                consult in accordance with the Bipartisan Trade 
                Promotion Authority Act of 2001'' on 
                negotiations with respect to a trade agreement 
                or trade agreements if--
                          (I) the President has failed or 
                        refused to consult (as the case may be) 
                        in accordance with section 4 or 5 with 
                        respect to the negotiations, agreement, 
                        or agreements;
                          (II) guidelines under section 7(b) 
                        have not been developed or met with 
                        respect to the negotiations, agreement, 
                        or agreements;
                          (III) the President has not met with 
                        the Congressional Oversight Group 
                        pursuant to a request made under 
                        section 7(c) with respect to the 
                        negotiations, agreement, or agreements; 
                        or
                          (IV) the agreement or agreements fail 
                        to make progress in achieving the 
                        purposes, policies, priorities, and 
                        objectives of this Act.
  Page 46, strike lines 13 through 17 and insert the following:
                          (I) may be introduced by any Member 
                        of the House;
  Page 46, strike lines 23 and 24 and insert the following:
                  (ii) in the Senate may be introduced by any 
                Member of the Senate.
  Page 47, lines 4 and 5, strike ``procedural disapproval 
resolutions'' and insert the following: ``a procedural 
disapproval resolution introduced with respect to a trade 
agreement if no other procedural disapproval resolution with 
respect to that trade agreement has previously been considered 
under such provisions of section 152 of the Trade Act of 1974 
in that House of Congress during that Congress''.
  Page 38, line 3, strike ``and''.
  Page 38, line 10, strike the period and insert ``; and''.
  Page 38, insert the following after line 10:
          (3) upon the request of a majority of the members of 
        the Congressional Oversight Group under section 7(c), 
        meet with the Congressional Oversight Group before 
        initiating the negotiations or at any other time 
        concerning the negotiations.
  Page 53, insert the following after line 13:
  (c) Request for Meeting.--Upon the request of a majority of 
the Congressional Oversight Group, the President shall meet 
with the Congressional Oversight Group before initiating 
negotiations with respect to a trade agreement, or at any other 
time concerning the negotiations.
  Page 55, insert the following after line 2 and redesignate 
succeeding sections accordingly:

SEC. 9. COMMITTEE STAFF.

  The grant of trade promotion authority under this Act is 
likely to increase the activities of the primary committees of 
jurisdiction in the area of international trade. In addition, 
the creation of the Congressional Oversight Group under section 
7 will increase the participation of a broader number of 
Members of Congress in the formulation of United States trade 
policy and oversight of the international trade agenda for the 
United States. The primary committees of jurisdiction should 
have adequate staff to accommodate these increases in 
activities.
  Page 4, line 17, strike ``10(2)'' and insert ``11(2)''.
  Page 19, line 2, strike ``10(2)'' and insert ``11(2)''.
  Page 22, line 10, strike ``10(2)'' and insert ``11(2)''.
  Page 36, line 10, strike ``sections'' and insert ``section''.

                                  
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