HR 817 IH

To promote trade in United States agricultural commodities, livestock, and value-added products, and to prepare for future bilateral and multilateral trade negotiations.

To promote trade in United States agricultural commodities, livestock, and value-added products, and to prepare for future bilateral and multilateral trade negotiations.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the `United States Agricultural Trade Act of 1999'.

SEC. 2. OBJECTIVES FOR AGRICULTURAL NEGOTIATIONS.

It is the sense of the Congress that--

The principal agricultural trade negotiating objectives of the United States for future multilateral and bilateral trade negotiations, including the World Trade Organization, shall be to achieve, on an expedited basis, and to the maximum extent feasible, more open and fair conditions for trade in agricultural commodities by--

(1) developing, strengthening, and clarifying rules for agricultural trade, including disciplines on restrictive or trade-distorting import and export practices, including--

(A) enhancing the operation and effectiveness of the relevant Uruguay Round Agreements designed to define, deter, and discourage the persistent use of unfair trade practices; and

(B) enforcing and strengthening rules of the World Trade Organization regarding--

(i) trade-distorting practices of state trading enterprises; and

(ii) the acts, practices, or policies of a foreign government which unreasonably--

(I) require that substantial direct investment in the foreign country be made as a condition for carrying on business in the foreign country;

(II) require that intellectual property be licensed to the foreign country or to any firm of the foreign country; or

(III) delay or preclude implementation of a report of a dispute panel of the World Trade Organization;

(2) increasing United States agricultural exports by eliminating barriers to trade (including transparent and nontransparent barriers);

(3) eliminating other specific constraints to fair trade and more open markets access in foreign markets, such as export subsidies, quotas, and other nontariff import barriers;

(4) developing, strengthening, and clarifying rules that address practices that unfairly limit United States market access opportunities or distort agricultural markets to the detriment of the United States, including--

(A) unfair or trade-distorted activities of state trading enterprises and other administrative mechanisms that result in inadequate price transparency;

(B) unjustified restrictions or commercial requirements affecting new technologies, including biotechnology;

(C) unjustified sanitary or phytosanitary restrictions; and

(D) restrictive rules in the establishment and administration of tariff-rate quotas;

(5) ensuring that there are reliable suppliers of agricultural commodities in international commerce by encouraging countries to treat foreign buyers no less favorably than domestic buyers of the commodity or product involved; and

(6) eliminating barriers for meeting the food needs of an increasing world population through the use of biotechnology by ensuring access to United States commodities derived from biotechnology that is scientifically defensible, opposing the establishment of projectionist trade measures disguised as health standards, and protecting continual delays by other countries in their approval processes--which constitute non-tariff trade barriers.

SEC. 3. DEFINITIONS.

As used in this Act, the terms `agricultural commodity' and `United States agricultural commodity' have the

SEC. 4. AGRICULTURAL COMMODITIES, LIVESTOCK, AND PRODUCTS EXEMPT FROM SANCTIONS.

(a) DEFINITION- Unilateral Economic Sanction. The term `unilateral economic sanction' means any prohibition, restriction, or condition on economic activity, including economic assistance, with respect to a foreign country or foreign entity that is imposed after the date of the enactment of this Act by the United States for reasons of foreign policy or national security, except in a case in which the United States imposes the measure pursuant to a multilateral regime and the other members of that regime have agreed to impose substantially equivalent measures.

(b) EXEMPTION-

(1) IN GENERAL- Subject to paragraph (2), and notwithstanding any other provision of law, in the case of a unilateral economic sanction imposed by the United States on another country, the following shall be exempt from the unilateral economic sanction--

(A) programs administered through Public Law 480 (7 U.S.C. 1701 et seq.);

(B) programs administered through section 416 of the Agricultural Act of 1949 (7 U.S.C. 1431);

(C) the program administered through section 1113 of the Food Security Act of 1985 (7 U.S.C. 1736-1); and

(D) commercial sales and humanitarian assistance involving agricultural commodities, which includes fertilizer.

(2) DETERMINATION BY PRESIDENT- If the President determines that the exemption under paragraph (1) should not apply to the unilateral economic sanction for reasons of foreign policy or national security, the President may include the activities described in paragraph (1) in the unilateral economic sanction.

(d) REPORT-

(1) IN GENERAL- If the President determines that the exemption under subsection (b) should not apply to a unilateral economic sanction, the President shall provide a report to the Committee on Agriculture in the House of Representatives, and the Committee on Agriculture, Nutrition, and Forestry in the Senate at the time of the imposition of the sanction.

(2) CONTENTS OF REPORT- The report shall contain--

(A) an explanation why, because of reasons of foreign policy or national security, the exemption should not apply to the unilateral economic sanction; and

(B) an assessment by the Secretary of Agriculture--

(i) of the extent to which any country or countries to be sanctioned or likely to be sanctioned are markets that accounted for, in the preceding calendar year, more than 3 percent of all export sales from the United States of an agricultural commodity;

(ii) of the likelihood that exports of agricultural commodities from the United States will be affected by the unilateral economic sanction or by retaliation by any country to be sanctioned or likely to be sanctioned, and specific commodities which are most likely to be affected;

(iii) of the likely effect on incomes of producers of the commodities involved;

(iv) of the extent to which the unilateral economic sanction would permit foreign suppliers to replace United States suppliers; and

(v) of the likely effect of the proposed sanction on the reputation of United States farmers as reliable suppliers of agricultural commodities in general, and of specific commodities identified by the Secretary.

SEC. 5. CONGRESSIONAL OVERSIGHT AND CONSULTATION FOR AGRICULTURAL NEGOTIATIONS.

Section 161 of the Trade Act of 1974 (19 U.S.C. 2211) is amended by adding at the end a new subsection (d) that reads as follows:

`(d) CONGRESSIONAL OVERSIGHT GROUP FOR AGRICULTURAL NEGOTIATIONS-

`(1) There is established a Congressional Oversight Group for Agricultural Negotiations (Oversight Group) that shall provide oversight and guidance with respect to agricultural trade policy and negotiation of agricultural trade issues.

`(A) Subject to clauses (i) and (ii), the Oversight Group shall consist of 3 members of the Committee on Agriculture, Nutrition, and

`(i) The President pro tempore of the Senate, upon the recommendation of the Chairman of the Committee on Agriculture, Nutrition, and Forestry, shall select two members from the majority party, and one member from the minority party, of the Senate.

`(ii) The Speaker of the House of Representatives, upon the recommendation of the Chairman of the Committee on Agriculture, shall select 2 members from the majority party, and one member from the minority party, of the House of Representatives.

`(B) Members of the House and Senate who are selected as members of the Oversight Group shall be accredited by the United States Trade Representative as official advisers to the United States delegations to international conferences, meetings, and negotiating sessions relating to agricultural trade policy and negotiation of agricultural trade issues.

`(2) All negotiating proposals by the United States and negotiations that affect agricultural trade shall be reviewed by the Oversight Group prior to an agreement being initiated by the President.

`(3) All information about negotiating proposals by the United States and foreign countries affecting agricultural trade negotiations shall be made available to the Oversight Group by the United States Trade Representative.

`(4) Within 60 days of enactment of this Act, the United States Trade Representative shall establish guidelines for ensuring the useful and timely supply of information to the Oversight Group and the communication of the oversight and guidance by the Oversight Group to the United States Trade Representative.

`(A) The guidelines shall establish procedures for the United States Trade Representative to provide to the Oversight Group--

`(i) information regarding the principal multilateral and bilateral negotiating objectives affecting agricultural trade, and the progress being made toward their achievement;

`(ii) information regarding the implementation, administration, and effectiveness of recently concluded multilateral and bilateral agricultural trade agreements and the resolution of agricultural trade disputes;

`(iii) a schedule for an initial meeting, prior to the commencement of negotiations involving agricultural trade, between the Oversight Group and the United States Trade Representative, about the objectives of the negotiations;

`(iv) written or oral briefings about the status of ongoing negotiations involving agricultural trade;

`(v) prior to the President initialing the trade agreement, written or oral briefings about the results of negotiations involving agricultural trade;

`(vi) information about changes in United States laws that are necessary as a result of the negotiations; and

`(vii) a schedule and procedure for the Oversight Group to provide advice and guidance to the United States Trade Representative regarding--

`(I) the negotiations involving agricultural trade; and

`(II) changes in United States laws that are necessary as a result of the negotiations.

`(B) The United States Trade Representative shall meet with the Oversight Group at a minimum on a quarterly basis, and as needed during a negotiation involving agricultural trade.

`(C) If determined necessary by either party, consultations between the Oversight Group and the United States Trade Representative may be conducted in executive session.'.

SEC. 6. SALE OR BARTER OF FOOD ASSISTANCE.

It is the sense of Congress that--

The amendment to section 203 of the Agricultural Trade Development and Assistance Act of 1954 (Pub. L. 480) made in section 208 of the Federal Agriculture Improvement and Reform Act of 1996 (Pub. L. 101-127) was intended to allow the sale or barter of United States agricultural commodities included in United States food assistance only within the recipient country or countries

(1) is not practicable; and

(2) will not disrupt commercial markets for the agricultural commodity involved.

SEC. 7. TREATMENT OF UNITED STATES AGRICULTURAL COMMODITIES, LIVESTOCK, AND AGRICULTURAL PRODUCTS.

(a) IDENTIFICATION REQUIRED- 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 ENGAGE IN UNFAIR TRADE PRACTICES AFFECTING UNITED STATES AGRICULTURAL COMMODITIES.

`(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 commodities through discriminatory nontariff trade barriers;

`(B) employ unfair export subsidies that adversely affect market share of United States exports of agricultural commodities; or

`(C) unreasonably delay or preclude implementation of a report of a dispute panel of the World Trade Organization; or

`(2) those foreign countries identified under paragraph (1) that are determined by the Trade Representative to be priority foreign countries.

`(b) Special Rules for Identification-

`(1) CRITERIA- In identifying priority foreign countries under subsection (a)(2), the Trade Representative shall only identify those foreign countries that--

`(A) engage in or have the most onerous or egregious acts, policies, or practices that deny fair and equitable market access to United States agricultural commodities;

`(B) engage in discriminatory nontariff trade barriers for the importation of United States agricultural commodities that are not based on public health concerns or cannot be substantiated by reliable analytical methods;

`(C) use unfair export subsidies;

`(D) unreasonably delay or preclude implementation of a report of a dispute panel of the World Trade Organization;

`(E) whose acts, policies, or practices described in subparagraphs (A)-(D) have the greatest adverse impact (actual or potential) on the relevant United States agricultural commodities; or

`(F) that are not negotiating in good faith about adopting fair and equitable trade practices, or making significant progress in bilateral or multilateral negotiations, in regard to United States agricultural commodities.

`(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 identifying the foreign country as engaging in a trade practice under subsection (a)(1).

`(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 trade practices affecting trade in the United States agricultural commodities.

`(c) REVOCATIONS AND ADDITIONAL IDENTIFICATIONS-

`(1) AUTHORITY TO ACT AT ANY TIME- If information available to the Trade Representative

`(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, the terms `agricultural commodity' and `United States agricultural commodity' have the meanings provided in section 102 (1) and (7) of the Agricultural Trade Act of 1978, respectively.

`(e) PUBLICATION- The Trade Representative shall publish in the Federal Register a list of foreign countries identified under subsection (a) and shall make 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 commodities.'.

(b) REMEDIAL ACTIONS TO UNFAIR TRADE PRACTICES INVOLVING UNITED STATES AGRICULTURAL COMMODITIES, LIVESTOCK, AND AGRICULTURAL PRODUCTS-

(1) Section 301 of the Trade Act of 1974 (19 U.S.C. 2411) is amended--

(A) in subsection (a)(1) by inserting `section 183(a) or' after `determines under';

(B) in subsection (b) by inserting `section 183(a) or' after `determines under';

(C) in subsection (c)(1)--

(i) in subparagraph (C) by striking `section; or' and inserting `section;'

(ii) in subparagraph (D) by striking `paragraph (4).' and inserting `paragraph (4); or'; and

(iii) by adding a new subparagraph (E) as follows:

`(E) with respect to an investigation of a country identified under section 183(a)--

`(I) take any action authorized under this subsection; and

`(II) to request that the Secretary of Agriculture target the use of existing United States export programs that are administered within the Department of Agriculture to the commodity that is subject to the unfair trade practice by the priority foreign country.'.

(c) 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 Engage in Unfair Trade Practices Affecting United States Agricultural Commodities.'.

(d) INVESTIGATION REQUIRED- Subparagraph (A) of section 302(b)(2) of the Trade Act of 1974 (19 U.S.C. 2412(b)(2)(A)) is amended by inserting `or 183(a)(2)' after `section 182(a)(2)' in the matter preceding clause (i).

(e) Conforming Amendments-

(1) Subparagraph (D) of section 302(b)(2) of such Act is amended by inserting `concerning intellectual property rights that is' after `any investigation'.

(2) Subparagraph (B) of section 304(a)(3) of such Act is amended--

(A) by striking `or' at the end of clause (ii);

(B) by inserting `or' at the end of clause (iii); and

(C) by inserting immediately after clause (iii) the following new clause:

`(iv) the foreign country involved in the investigation is making substantial progress in drafting or implementing legislative or administrative measures that ensure the country engages in fair and equitable trade practices affecting United States agricultural commodities.'.

SEC. 8. DUTIES OF AGRICULTURE DEPARTMENT REGARDING SANITARY AND PHYTOSANITARY ISSUES.

(a) LEAD AGENCY STATUS- Title I of the Agricultural Trade Act of 1978 (7 U.S.C. 5601 et seq.) is amended by adding at the end the following new section:

`SEC. 107. SANITARY AND PHYTOSANITARY ISSUES.

`The Department of Agriculture shall be the lead agency in the Federal Government for sanitary and phytosanitary issues that affect agricultural exports.'.

(b) DATA COLLECTION AND REPORT- The Secretary shall identify sanitary and phytosanitary measures currently negatively affecting agricultural exports, by country and commodity, noting--

(1) whether such measures are consistent with the World Trade Organization sanitary and phytosanitary agreement; and

(2) whether issues arising from such measures are being addressed and resolved;

and report the Secretary's findings thereon to Congress not later than July 31, 1999.