[Weekly Compilation of Presidential Documents Volume 36, Number 49 (Monday, December 11, 2000)]
[Pages 2977-2979]
[Online from the Government Publishing Office, www.gpo.gov]

<R04>
Executive Order 13177--National Commission on the Use of Offsets in 
Defense Trade and President's Council on the Use of Offsets in 
Commercial Trade

December 4, 2000

    By the authority vested in the President by the Constitution and the 
laws of the United States of America, including Public Law 106-113 and 
the Federal Advisory Committee Act, as amended (5 U.S.C. App. 2), and in 
order to implement section 1247 of Public Law 106-113 (113 Stat. 1501A-
502) and to create a parallel ``President's Council on the Use of 
Offsets in Commercial Trade,'' it is hereby ordered as follows:
    <E T='04'<ls-thn-eq>Section 1. Membership. Pursuant to Public Law 
106-113, the ``National Commission on the Use of Offsets in Defense 
Trade'' (Commission) comprises 11 members appointed by the President 
with the concurrence of the Majority and Minority Leaders of the Senate 
and the Speaker and the Minority Leader of the House of Representatives. 
The Commission membership includes: (a) representatives from the private 
sector, including one each from (i) a labor organization, (ii) a United 
States defense manufacturing company dependent on foreign sales, (iii) a 
United States company dependent on foreign sales that is not a defense 
manufacturer, and (iv) a United States company that specializes in 
international investment; (b) two members from academia with widely 
recognized expertise in international economics; and (c) five members 
from the executive branch, including a member from the: (i) Office of 
Management and Budget, (ii) Department of Commerce, (iii) Department of 
Defense, (iv) Department of State, and (v) Department of Labor. The 
member from the Office of Management and Budget will serve as 
Chairperson of the Commission and will appoint, and fix the compensation 
of, the Executive Director of the Commission.

[[Page 2978]]

    <E T='04'<ls-thn-eq>Sec. 2. Duties. The Commission will be 
responsible for reviewing and reporting on: (a) current practices by 
foreign governments in requiring offsets in purchasing agreements and 
the extent and nature of offsets offered by United States and foreign 
defense industry contractors; (b) the impact of the use of offsets on 
defense subcontractors and nondefense industrial sectors affected by 
indirect offsets; and (c) the role of offsets, both direct and indirect, 
on domestic industry stability, United States trade competitiveness, and 
national security.
    <E T='04'<ls-thn-eq>Sec. 3. Commission Report. Not later than 12 
months after the Commission is established, it will report to the 
appropriate congressional committees. In addition to the items described 
in section 2 of this order, the report will include: (a) an analysis of 
(i) the collateral impact of offsets on industry sectors that may be 
different than those of the contractor paying offsets, including 
estimates of contracts and jobs lost as well as an assessment of damage 
to industrial sectors; (ii) the role of offsets with respect to 
competitiveness of the United States defense industry in international 
trade and the potential damage to the ability of United States 
contractors to compete if offsets were prohibited or limited; and (iii) 
the impact on United States national security, and upon United States 
nonproliferation objectives, of the use of co-production, 
subcontracting, and technology transfer with foreign governments or 
companies, that results from fulfilling offset requirements, with 
particular emphasis on the question of dependency upon foreign nations 
for the supply of critical components or technology; (b) proposals for 
unilateral, bilateral, or multilateral measures aimed at reducing any 
detrimental effects of offsets; and (c) an identification of the 
appropriate executive branch agencies to be responsible for monitoring 
the use of offsets in international defense trade.
    <E T='04'<ls-thn-eq>Sec. 4. Administration, Compensation, and 
Termination. (a) The Department of Defense will provide administrative 
support and funding for the Commission and Federal Government employees 
may be detailed to the Commission without reimbursement.
    (b) Members of the Commission who are not officers or employees of 
the Federal Government will be compensated at a rate of basic pay 
prescribed for level IV of the Executive Schedule under section 5315 of 
title 5, United States Code, for each day (including travel time) during 
which such member is engaged in performance of the duties of the 
Commission. Members of the Commission who are officers or employees of 
the Federal Government will serve without compensation in addition to 
that received for their services as officers or employees of the Federal 
Government.
    (c) Members of the Commission will be allowed travel expenses, 
including per diem in lieu of subsistence, under subchapter 1 of chapter 
57 of title 5, United States Code, while on business in the performance 
of services for the Commission.
    (d) The Commission will terminate 30 days after transmitting the 
report required in section 1248(b) of Public Law 106-113 (113 Stat. 
1501A-505).
    <E T='04'<ls-thn-eq>Sec. 5. Establishment and Membership. (a) There 
is established, pursuant to the Federal Advisory Committee Act, as 
amended (5 U.S.C. App.), the ``President's Council on the Use of Offsets 
in Commercial Trade'' (Council).
    (b) The Council shall be composed of the appointed members of the 
Commission or their designees.
    <E T='04'<ls-thn-eq>Sec. 6. Duties and Report of the Council. The 
Council shall review and report to the President, through the Director 
of the Office of Management and Budget, on the use of offsets in 
commercial trade, including their impact on the United States defense 
and commercial industrial base. The Council shall consult with and, as 
appropriate, provide information to the Commission.
    <E T='04'<ls-thn-eq>Sec. 7. Administration. (a) The Department of 
Defense shall provide administrative support and funding for the 
Council.
    (b) The heads of executive departments and agencies shall, to the 
extent permitted by law, provide to the Council such information as it 
may require for the purpose of carrying out its duties.
    (c) Members of the Council shall serve without compensation.
    <E T='04'<ls-thn-eq>Sec. 8. General. (a) Notwithstanding any other 
Executive Order, the functions of the

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President under the Federal Advisory Committee Act, as amended, except 
that of reporting to the Congress, that are applicable to the Council, 
shall be performed by the Department of Defense in accordance with 
guidelines that have been issued by the Administrator of General 
Services.
    (b) The Council shall terminate on the date of the transmission of 
the report required by section 1248(b) of Public Law 106-113 (113 Stat. 
1501A-505).
                                            William J. Clinton
 The White House,
 December 4, 2000.

 [Filed with the Office of the Federal Register, 8:45 a.m., December 5, 
2000]

Note: This Executive order was published in the Federal Register on 
December 6.