S 566 IS

To amend the Agricultural Trade Act of 1978 to exempt agricultural commodities, livestock, and value-added products from unilateral economic sanctions, to prepare for future bilateral and multilateral trade negotiations affecting United States agriculture, and for other purposes.

To amend the Agricultural Trade Act of 1978 to exempt agricultural commodities, livestock, and value-added products from unilateral economic sanctions, to prepare for future bilateral and multilateral trade negotiations affecting United States agriculture, and for other purposes.

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 `Agricultural Trade Freedom Act'.

SEC. 2. DEFINITIONS.

In this Act, the terms `agricultural commodity' and `United States agricultural commodity' have the meanings given the terms in section 102 of the Agricultural Trade Act of 1978 (7 U.S.C. 5602).

SEC. 3. AGRICULTURAL COMMODITIES, LIVESTOCK, AND PRODUCTS EXEMPT FROM SANCTIONS.

Title IV of the Agricultural Trade Act of 1978 (7 U.S.C. 5661 et seq.) is amended by adding at the end the following:

`SEC. 418. AGRICULTURAL COMMODITIES, LIVESTOCK, AND PRODUCTS EXEMPT FROM SANCTIONS.

`(a) DEFINITIONS- In this section:

`(1) CURRENT SANCTION- The term `current sanction' means a unilateral economic sanction that is in effect on the date of enactment of the Agricultural Trade Freedom Act.

`(2) NEW SANCTION- The term `new sanction' means a unilateral economic sanction that becomes effective after the date of enactment of that Act.

`(3) 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 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 paragraphs (2) and (3) and notwithstanding any other provision of law, agricultural commodities made available as a result of commercial sales shall be exempt from a unilateral economic sanction imposed by the United States on another country.

`(2) EXCLUSIONS- Paragraph (1) shall not apply to agricultural commodities made available as a result of programs carried out under--

`(A) the Agricultural Trade Development and Assistance Act of 1954 (7 U.S.C. 1691 et seq.);

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

`(C) the Food for Progress Act of 1985 (7 U.S.C. 1736o); or

`(D) the Agricultural Trade Act of 1978 (7 U.S.C. 5601 et seq.).

`(3) DETERMINATION BY PRESIDENT- If the President determines that the exemption provided under paragraph (1) should not apply to a unilateral economic sanction for reasons of foreign policy or national security, the President may include the agricultural commodities made available as a result of the activities described in paragraph (1) in the unilateral economic sanction.

`(c) CURRENT SANCTIONS-

`(1) IN GENERAL- Subject to paragraph (2), the exemption under subsection (b)(1) shall apply to a current sanction.

`(2) PRESIDENTIAL REVIEW- Not later than 90 days after the date of enactment of the Agricultural Trade Freedom Act, the President shall review each current sanction to determine whether the exemption under subsection (b)(1) should apply to the current sanction.

`(3) APPLICATION- The exemption under subsection (b)(1) shall apply to a current sanction beginning on the date that is 180 days after the date of enactment of the Agricultural Trade Freedom Act unless the President determines that the exemption should not apply to the current sanction for reasons of foreign policy or national security.

`(d) REPORT-

`(1) IN GENERAL- If the President determines that the exemption under subsection (b)(2) or (c)(2)

`(A) in the case of a current sanction, not later than 15 days after the date of the determination under subsection (c)(2); and

`(B) in the case of a new sanction, on the date of the imposition of the new sanction.

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

`(A) an explanation of the foreign policy or national security reasons for which the exemption should not apply to the unilateral economic sanction; and

`(B) an assessment by the Secretary--

`(i) regarding export sales--

`(I) in the case of a current sanction, whether markets in the sanctioned country or countries present a substantial trade opportunity for export sales of a United States agricultural commodity; or

`(II) in the case of a new sanction, the extent to which any country or countries to be sanctioned or likely to be sanctioned are markets that accounted for, during the preceding calendar year, more than 3 percent of export sales of a United States agricultural commodity;

`(ii) regarding the effect on United States agricultural commodities--

`(I) in the case of a current sanction, the potential for export sales of United States agricultural commodities in the sanctioned country or countries; and

`(II) in the case of a new sanction, the likelihood that exports of United States agricultural commodities will be affected by the new sanction or by retaliation by any country to be sanctioned or likely to be sanctioned, including a description of specific United States agricultural commodities that are most likely to be affected;

`(iii) regarding the income of agricultural producers--

`(I) in the case of a current sanction, the potential for increasing the income of producers of the United States agricultural commodities involved; and

`(II) in the case of a new sanction, the likely effect on incomes of producers of the agricultural commodities involved;

`(iv) regarding displacement of United States suppliers--

`(I) in the case of a current sanction, the potential for increased competition for United States suppliers of the agricultural commodity in countries that are not subject to the current sanction; and

`(II) in the case of a new sanction, the extent to which the new sanction would permit foreign suppliers to replace United States suppliers; and

`(v) regarding the reputation of United States agricultural producers as reliable suppliers--

`(I) in the case of a current sanction, whether removing the sanction would increase the reputation of United States producers as reliable suppliers of agricultural commodities in general, and of specific agricultural commodities identified by the Secretary; and

`(II) in the case of a new sanction, the likely effect of the proposed sanction on the reputation of United States producers as reliable suppliers of agricultural commodities in general, and of specific agricultural commodities identified by the Secretary.'.

SEC. 4. OBJECTIVES FOR AGRICULTURAL NEGOTIATIONS.

It is the sense of Congress that the principal agricultural trade negotiating objectives of the United States for future multilateral and bilateral trade negotiations (including negotiations involving the World Trade Organization) should be to achieve, on an expedited basis and to

(1) developing, strengthening, and clarifying rules for trade in agricultural commodities, including eliminating or reducing restrictive or trade-distorting import and export practices, including--

(A) enhancing the operation and effectiveness of the relevant provisions of the 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 similar public and private trading enterprises; and

(ii) the acts, practices, or policies of a foreign government that 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 the export of United States agricultural commodities by eliminating barriers to trade (including transparent and nontransparent barriers);

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

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

(A) unfair or trade-distorting activities of state trading enterprises, and similar public and private trading enterprises, 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 nontariff trade barriers for meeting the food needs of an increasing world population through the use of biotechnology by--

(A) ensuring market access to United States agricultural commodities derived from biotechnology that is scientifically defensible;

(B) opposing the establishment of protectionist trade measures disguised as health standards; and

(C) protesting continual delays by other countries in their approval processes.

SEC. 5. SALE OR BARTER OF FOOD ASSISTANCE.

It is the sense of Congress that the amendments to section 203 of the Agricultural Trade Development and Assistance Act of 1954 (7 U.S.C. 1723) made by section 208 of the Federal Agriculture Improvement and Reform Act of 1996 (Public Law 104-127; 110 Stat. 954) were intended to allow the sale or barter of United States agricultural commodities in connection with United States food assistance only within the recipient country or countries adjacent to the recipient country, unless--

(1) the sale or barter within the recipient country or adjacent countries is not practicable; and

(2) the sale or barter within countries other than the recipient country or adjacent countries will not disrupt commercial markets for the agricultural commodity involved.

SEC. 6. SENSE OF CONGRESS REGARDING RELIEF FROM UNFAIR TRADE PRACTICES AFFECTING UNITED STATES AGRICULTURAL COMMODITIES.

(a) FINDINGS- Congress finds that--

(1) often dispute settlement proceedings to resolve unfair trade practices of foreign countries that restrict market access of United States agricultural commodities are inadequate, time consuming, and cumbersome; and

(2) practices that unfairly limit market access opportunities for United States agricultural commodities through export subsidies and import barriers include--

(A) unfair or trade-distorting activities of state trading enterprises, and similar public and private trading enterprises, that result in inadequate price transparency;

(B) unjustified restrictions or commercial requirements affecting new technologies, including biotechnology, that are not scientifically defensible;

(C) unjustified sanitary or phytosanitary restrictions;

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

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

(F) requirements that intellectual property be licensed to the foreign country or to any firm of the foreign country.

(b) SENSE OF CONGRESS- It is the sense of Congress that the Secretary of Agriculture should aggressively use the authorities granted to the Secretary under section 302 of the Agricultural Trade Act of 1978 (7 U.S.C. 5652), which provides the Secretary with the authority to use programs of the Department of Agriculture for the agricultural commodity involved when there is undue delay in a dispute resolution proceeding of an international trade agreement (such as an agreement administered by the World Trade Organization).

SEC. 7. MICRONUTRIENT FORTIFICATION PILOT PROGRAM.

Section 415 of the Agricultural Trade Development and Assistance Act of 1954 (7 U.S.C. 1736g-2) is repealed.

SEC. 8. TECHNICAL CORRECTIONS.

(a) ADMINISTRATIVE PROVISIONS- Section 216 of the Federal Agriculture Improvement and Reform Act of 1996 (Public Law 104-127; 110 Stat. 957) is amended--

(1) in paragraph (2), by striking `subsection (c)' and inserting `subsection (b)';

(2) in paragraph (3), by striking `subsection (d)' and inserting `subsection (c)';

(3) in paragraph (4), by striking `subsection (g)(2)' and inserting `subsection (f)(2)'; and

(4) in paragraph (5), by striking `subsection (h)' and inserting `subsection (g)'.

(b) EMERGING MARKETS- Section 1542(d)(1)(A)(i) of the Food, Agriculture, Conservation, and Trade Act of 1990 (Public Law 101-624; 7 U.S.C. 5622 note) is amended by striking `such democracies' and inserting `the markets'.

(c) TRADE COMPENSATION AND ASSISTANCE PROGRAMS- Section 417(a) of the Agricultural Trade Act of 1978 (7 U.S.C. 5677(a)) is amended by inserting `of an agricultural commodity' after `causes exports'.

(d) EFFECTIVE DATE- The amendments made by this section take effect on April 4, 1996.