Order Code RL31249
CRS Report for Congress
Received through the CRS Web
Trade Promotion (Fast-Track) Authority: A
Comparison of H.R. 3005 as Approved by the
House and by the Senate Finance Committee
January 17, 2002
Lenore Sek
Specialist in International Trade and Finance
Foreign Affairs, Defense, and Trade Division
Congressional Research Service ˜ The Library of Congress

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Trade Promotion (Fast-Track) Authority: A Comparison
of H.R. 3005 as Approved by the House and by the
Senate Finance Committee
Summary
This report compares H.R. 3005, the Bipartisan Trade Promotion Authority Act
of 2001, as approved by the House on December 6, 2001, and as ordered reported by
the Senate Finance Committee on December 18, 2001. The versions for the most part
are identical, but there are differences on changes to trade remedy laws and dispute
panel action.
Both versions outline almost identical objectives, although they have some
differences on two principal objectives (“foreign investment,” where the Senate
Finance Committee version has more language to address criticism of investor-state
disputes under NAFTA and “dispute settlement and enforcement”), and the Senate
Finance Committee version has an additional principal objective (“border taxes”).
Both versions call for the President to take almost the same actions to maintain U.S.
competitiveness, although they require different labor reports, and the Senate Finance
Committee version requires the President to address market distortions leading to
dumping and subsidies. Both are identical on consultations during negotiations.
Both versions have almost identical language on the President’s authority to
negotiate trade agreements with expedited legislative procedures for an implementing
bill. For example, they have the same deadline for negotiating agreements, the same
requirements for extending the deadline, and the same conditions for a trade
agreement and an implementing bill to have expedited procedures apply.
Both versions have identical language regarding notification and consultation
before negotiation, special assessments for negotiations on agriculture and on textiles,
and reports by private sector advisors and by the International Trade Commission.
The Senate Finance Committee version contains the same language as the House
version on consultation with Congress before the President enters into an agreement,
but adds requirements that the President notify Congress of negotiated changes to
trade remedy laws and justify those changes, and that the chairmen of the revenue
committees report to their respective houses on the proposed changes.
Both versions have essentially identical provisions on documents that the
President must submit to Congress with the trade agreement and a draft implementing
bill, except the Senate Finance Committee version adds language on reporting
changes to the trade remedy laws, on procedural action in the Senate, and on a new
requirement that the Secretary of Commerce submit to Congress a report on a
strategy to address certain actions by World Trade Organization dispute bodies.
Both versions are identical on establishing a Congressional Oversight Group,
with the only difference that the Senate Finance Committee version requires a time
frame for a labor rights report. Both versions are identical on adjustment to the pre-
notification requirements where negotiations are already underway, on a required plan
by the President to address implementing and enforcing the trade agreement, and on
the need for congressional staff to accommodate increased trade-related activities.

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Contents
Section 1. Short Title and Findings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Section 2. Trade Negotiating Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Section 3. Trade Agreement Authority . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Section 4. Consultations and Assessment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Section 5. Implementation of Trade Agreements . . . . . . . . . . . . . . . . . . . . . . 10
Section 6. Treatment of Certain Trade Agreements for Which Negotiations
Have Already Begun . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Section 7. Congressional Oversight Group (COG) . . . . . . . . . . . . . . . . . . . . . 13
Section 8. Additional Implementation and Enforcement Requirements . . . . . . 14
Section 9. Committee Staff . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

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Trade Promotion (Fast-Track) Authority: A
Comparison of H.R. 3005 as Approved by
the House and by the Senate Finance
Committee
Section 1. Short Title and Findings
H.R. 3005 (House)
H.R. 3005 (Senate Finance Committee)
The title of the legislation is the
Identical
“Bipartisan Trade Promotion Authority Act
of 2001.” Section 1(a)
Lists findings that (1) expansion of
Includes identical House-passed provisions
international trade is vital to U.S. security;
and adds:
and (2) national security depends on
economic security, which is founded on a
(3) support for continued trade expansion
vibrant and growing U.S. industrial base.
requires that dispute settlement procedures
Section 1(b)
not add to obligations or diminish rights
under such agreements (includes reference to
problems with actions by dispute settlement
panels and the World Trade Organization
(WTO) Appellate Body). Section 1(b)(3)

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Section 2. Trade Negotiating Objectives
H.R. 3005 (House)
H.R. 3005 (Senate Finance Committee)
Overall Negotiating Objectives
Identical
Lists 7 overall objectives: (1) more open,
equitable, and reciprocal market access; (2)
reduction in or elimination of barriers and
distortions related to trade; (3) stronger
international trading disciplines, including
dispute settlement; (4) economic benefits for
the United States and the world; (5) mutually
supportive trade and environmental policies;
(6) respect for worker rights and the rights of
children; and (7) provisions in trade
agreements to discourage weakening
environmental or labor laws to encourage
trade. Section 2(a)
Principal Trade Negotiating Objectives
Identical, with the following exceptions:
Lists 13 principal negotiating objectives to
foreign investment.
(1) expand market opportunities for U.S.
Adds language that objective should ensure
exports by reducing or eliminating trade
that in the United States, U.S. investors are
barriers and distortions to trade; (2) reduce
not accorded lesser rights than foreign
or eliminate barriers to international trade in
investors; and a section on seeking to
services; (3) reduce or eliminate barriers to
establish standards for fair and equitable
trade-related foreign investment and secure
treatment consistent with U.S. legal
for investors rights comparable to those
principles and practice. Sections 2(b)(3) and
available in the United States; (4) further
2(b)(3)(E).
promote protection of intellectual property
Adds to provision on investor-government
rights (IPR) and secure market access
disputes: mechanisms to deter the filing of
opportunities for U.S. persons that rely on
frivolous claims; procedures to enhance
IPR protection; (5) obtain wider and broader
public input into the formulation of
application of transparency through greater
government positions; and establishment of a
public access to information and more
single appellate body to provide coherence to
openness at the WTO; (6) obtain anti-
the interpretations of investment provisions
corruption standards that prohibit attempts to
in trade agreements. Section 2(b)(3)(G)
influence government actions affecting trade;
Does not include House language (in
(7) seek improvement of the WTO and
section 2(b)(3)(G)) on an appellate or similar
multilateral trade agreements by expanding
review mechanism to correct manifestly
coverage and expanding country
erroneous interpretations of law.
participation; (8) establish disincentives for
governments to use regulatory practices to
dispute settlement.
give a competitive advantage to domestic
Adds improved adherence by WTO dispute
interests; (9) attempt to ensure open and
panels and by the WTO Appellate Body to
nondiscriminatory rules covering electronic
the standard of review applicable under the
commerce; (10) obtain reciprocal trade in
relevant WTO Agreement, including greater
agriculture so opportunities are substantially
deference to the fact finding and technical
equivalent in U.S. and foreign markets, and
expertise of national investigating authorities.
achieve fairer and more open conditions for
Section 2(b)(12)(C)
commodities; (11) ensure protections for
labor and the environment, such as assurance
border taxes.
that parties will not fail to enforce their own
Adds a 14th objective: obtain a revision of
environmental and labor laws; (12)
WTO rules on the treatment of border
strengthen dispute settlement and

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H.R. 3005 (House)
H.R. 3005 (Senate Finance Committee)
enforcement of trade agreements; and (13)
adjustments to redress the disadvantage to
achieve specified objectives in WTO extended
countries that depend on direct taxes for
negotiations on civil aircraft and rules of
revenue rather than indirect taxes. Section
origin. Section 2(b)
2(b)(13)
Promotion of Certain Priorities
Identical, except:
The President must take certain actions in
Replaces (8) in House bill with a related
order to address and maintain U.S.
provision that requires the President to
competitiveness in the global economy.
submit to the revenue committees a
These 12 actions (1) seek greater WTO-ILO
meaningful labor rights report on parties to a
cooperation; (2) seek consultative
prospective agreement. Section 2(c)(8)
mechanisms among parties to promote
Expands on (9) in House bill by specifically
respect for core labor standards; (3) seek
including safeguards under trade remedy
consultative mechanisms among parties to
laws, and adding that the President address
develop and implement standards for
and remedy market distortions that lead to
protection of the environment; (4) conduct
dumping and subsidization, including
environmental reviews of future trade
overcapacity, cartelization, and market-access
agreements; (5) review the impact of future
barriers. Section 2(c)(9)
trade agreements on employment; (6) take
into account other domestic objectives such
as health and safety, security, and consumer
interests; (7) have the Secretary of Labor
consult with other countries regarding their
labor laws; (8) report to Congress on child
labor laws in parties to prospective
agreements; (9) preserve the ability of the
United States to enforce rigorously its trade
laws, including antidumping and
countervailing duty laws; (10) continue to
promote consideration of multilateral
environmental agreements; (11) report to the
revenue committees on the effectiveness of a
trade remedy permitted by a trade agreement;
and (12) seek a consultative mechanism with
other parties to examine how currency
movements or manipulation affect trade.
Sections 2(c)(1)-2(c)(12)
Consultations
Identical
During negotiations, the USTR shall
consult closely and on a timely basis
(including in most cases immediately before
initialing an agreement) with, and keep fully
apprised of the negotiations, the
Congressional Oversight Group (COG),
committees of jurisdiction, current
congressional trade advisors, the revenue
committees, and (with regard to negotiations
relating to agricultural trade) the agriculture
committees. Section 2(d)

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H.R. 3005 (House)
H.R. 3005 (Senate Finance Committee)
Adherence to Obligations Under Uruguay
Identical
Round Agreements
In determining whether to negotiate with
another country, the President shall consider
the other country’s adherence to its
obligations under the Uruguay Round
Agreements. Section 2(e)

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Section 3. Trade Agreement Authority
H.R. 3005 (House)
H.R. 3005 (Senate Finance Committee)
Agreements Regarding Tariff Barriers:
Virtually identical
The President may proclaim tariff cuts for
agreements entered into before June 1, 2005,
or before June 1, 2007, if expedited
procedures are extended. Section 3 (a)(1)
Tariffs over 5% ad valorem may not be
reduced by more than half, nor may tariffs be
increased. A special rule applies for certain
agricultural products. Section 3(a)(2)
Other rules are stipulated (e.g., rounding,
exemption of reductions from staging).
Sections 3(a)(3)-3(a)(7)
Agreements Regarding Tariff and Nontariff
Identical
Barriers
The President may enter into a trade
agreement on duties or other import
restrictions before June 1, 2005, or before
June 1, 2007, if expedited procedures are
extended. Section 3(b)(1)
A trade agreement may be entered into only
if such agreement makes progress in meeting
the overall and principal negotiating
objectives and satisfies the conditions for
consultation and assessment. Section 3(b)(2)
Expedited procedures, called “trade
authorities procedures,” apply to a bill which
contains (1) a provision approving the trade
agreement and the statement of
administrative action if any; and (2)
provisions that are necessary or appropriate
to implement the trade agreement, if changes
in existing laws or new statutory authority are
required to implement the trade agreement.
This type of bill is called an “implementing
bill.” Section 3(b)(3)

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H.R. 3005 (House)
H.R. 3005 (Senate Finance Committee)
Extension Disapproval Process for
Identical
Congressional Trade Authorities Procedures
Trade authorities procedures shall apply to
an implementing bill for trade agreements
that were entered into by June 1, 2005, or by
June 1, 2007, if two conditions are met: (1)
the President requests such extension; and (2)
neither House of Congress adopts an
extension disapproval resolution before June
1, 2005. Section 3(c)(1)
If the President decides that trade
authorities procedures should be extended,
the President must submit to Congress, not
later than March 1, 2005, a written request
with specified information. Section 3(c)(2)
The President must promptly report to the
private sector Advisory Committee for Trade
Policy and Negotiations (ACTPN) on the
intent to pursue the 2-year extension in trade
authorities procedures. ACTPN must report
to Congress no later than May 1, 2005, on
progress in the negotiations and whether the
extension should be granted. Section 3(c)(3)
The reports by the President and by
ACTPN on the extension will be classified.
Section 3(c)(4)
The language and procedure for
consideration of the extension disapproval
resolution are described. Section 3(c)(5)
Commencement of Negotiations
Identical
In cases where the President determines
that certain negotiations are feasible and
timely and could benefit the United States,
the President shall commence negotiations
covering tariff and nontariff barriers affecting
any industry, product, or service sector, and
expand existing sectoral agreements to
countries that are not already parties. The
list of such sectors includes agriculture,
industrial and capital goods, environmental
technology and services, civil aircraft, and
other mentioned sectors. Section 3(d)

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Section 4. Consultations and Assessment
H.R. 3005 (House)
H.R. 3005 (Senate Finance Committee)
Notice and Consultation Before Negotiation
Identical
With regard to trade agreements negotiated
under Section 3(b), the President shall:
(1) provide, at least 90 calendar days before
starting negotiations, written notice of intent to
enter into negotiations and set forth the intended
starting date, specific objectives, and whether the
President will seek an agreement or changes to an
existing agreement;
(2) before and after the above notice, consult
with the revenue committees, such other
committees as the President deems appropriate,
and the COG. Section 4(a)
Negotiations Regarding Agriculture
Identical
Before undertaking negotiations on foreign
tariffs and other charges on U.S. agricultural
exports, the President shall assess whether U.S.
tariffs bound on these products are lower than
tariffs bound on U.S. exports in the other country
or worldwide, and whether the negotiation gives an
opportunity to address any disparity. The
President shall consult with the revenue
committees and agriculture committees on the
results of the assessment, tariff reductions, and
negotiating objectives. Section 4(b)(1)
The USTR shall identify certain import sensitive
agricultural products and consult with the revenue
and agriculture committees on any further tariff
reductions and whether the products face
unjustified sanitary or phytosanitary restrictions.
The USTR shall request an ITC assessment of the
economic effects of any tariff reductions, and
notify the revenue and agriculture committees of
any intent to seek tariff cuts currently or in the
future. Section 4(b)(2)
Negotiations Regarding Textiles
Identical
Before undertaking negotiations on textiles and
apparel products with another country, the
President shall assess whether U.S. tariffs bound
on such products are lower than the other country’s
bound tariffs and whether the negotiation gives an
opportunity to address any disparity. The
President shall consult with the revenue
committees on the results of the assessment, tariff
reductions, and applicable negotiating objectives.
Section 4(c)

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H.R. 3005 (House)
H.R. 3005 (Senate Finance Committee)
Consultation with Congress Before Agreements
Contains the identical House language
Entered Into
but adds:
Before entering into an agreement under Section
At least 90 calendar days before
3(b), the President shall consult with the revenue
entering into a trade agreement, the
committees, other committees with jurisdiction, and
President shall notify the revenue
the COG. Section 4(d)(1)
committees of any amendments to Title
VII of the Tariff Act of 1930 or
The consultation shall cover the nature of the
Chapter 1 of Title II of the Trade Act
agreement, how the agreement will achieve
of 1974 [provisions covering
applicable policies and objectives,
antidumping and countervailing duties
and implementation of the agreement (including
and safeguards] that will be proposed
the effect on existing laws). Section 4(d)(2)
in an implementing bill. Section
4(d)(3)(A)
On the same date as the above
notification, the President shall report
to the committees the reasons the
amendments are necessary and the
reasons they are consistent with the
purposes, policies, and objectives of
Section 2(c)(9) [the President shall
preserve the ability to rigorously
enforce U.S. trade laws]. Section
4(d)(3)(B)
Within 60 days of the above
notification, the chairman and ranking
member of the revenue committees in
each house, based on consultations
with their respective committee
members, shall report to their
respective house on whether the
proposed amendments are consistent
with the purposes, policies, and
objectives of Section 2(c)(9). The
reports shall contain any differences in
views of the chairmen and ranking
members. Sections 4(d)(3)(C) and
4(d)(3)(D)
Advisory Committee Reports
Identical
Private sector advisors shall submit reports on
Section 3(a) and Section 3(b) trade agreements to
the President, Congress, and the USTR, not later
than 30 days after the President notifies Congress of
the intent to enter into the trade agreement. Section
4(e)

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H.R. 3005 (House)
H.R. 3005 (Senate Finance Committee)
ITC Assessment
Identical
The President, at least 90 calendar days before
entering into an agreement under Section 3(b),
shall give the International Trade Commission
(ITC) details of the agreement and request that the
ITC prepare and submit an assessment of the
agreement. Not later than 90 calendar days after
the President enters into the agreement, the ITC
shall submit to the President and to Congress a
report assessing various economic impacts of the
agreement. The ITC shall review and assess
empirical literature regarding the agreement.
Section 4(f)

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Section 5. Implementation of Trade Agreements
H.R. 3005 (House)
H.R. 3005 (Senate Finance Committee)
In General
Identical, except:
Any agreement under Section 3(b) shall enter
Adds that the President must also
into force if, and only if: (1) the President, at least
transmit the notification and report on
90 calendar days before entering into an
trade remedy laws required under
agreement, notifies the House and the Senate of
Section 4(d)(3)(A) and (B) to the
the intention to enter into the agreement, and
revenue committees when he makes his
publishes notice in the Federal Register; (2) within
notification before entering into an
60 days of entering into the agreement, the
agreement. Section 5(a)(1)(A)(ii)
President submits to Congress a description of
Requires the following additional
legal changes required for compliance with the
supporting information be submitted
agreement; (3) after entering into the agreement,
along with the text of the agreement and
the President submits to Congress the text of the
other documents: in the event that the
agreement, together with a draft implementing
congressional reports in Sections
bill, a statement of administrative action, and
4(d)(3)(C) and (D) find that proposed
other supporting information; and (4) the
amendments to trade remedy laws are
implementing bill is enacted. Section 5(a)(1)
inconsistent with the purposes, policies,
and objectives of Section 2(c)(9), the
Supporting information to be submitted along
President must explain why those
with the text of the agreement and the draft
findings are incorrect. Section
implementing bill consists of an explanation of
5(a)(2)(B)(ii)(VI)
how the implementing bill and administrative
action might change existing law, a statement of
how the agreement makes progress in achieving
the objectives, and other information as described.
Section 5(a)(2)
The implementing bill shall provide that the
benefits and obligations under the agreement
apply only to the parties to the agreement. The
implementing bill may provide that the benefits
and obligations do not apply uniformly to all
parties. Section 5(a)(3)

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H.R. 3005 (House)
H.R. 3005 (Senate Finance Committee)
Limitations of Trade Authorities
Identical (with some changes in numbering),
Procedures
except for the following:
Trade authorities procedures shall not
Adds that a procedural disapproval resolution
apply to any implementing bill for a
shall be referred to the Finance Committee, and it
Section 3(b) trade agreement if, during
is not in order for the Senate to consider a
the 60-day period beginning on the date
procedural disapproval resolution not reported by
that a house agrees to a procedural
the Finance Committee. [Similar language
disapproval resolution for lack of notice
referring to the Ways and Means Committee is in
or consultations, the other house
the House-passed bill.] Sections 5(b)(1)(C)(i)(bb)
separately agrees to a procedural
and (ii)(iv)
resolution with regard to the same trade
Adds a section requiring that, prior to
agreement. The term “procedural
December 31, 2002, the Secretary of Commerce
disapproval resolution” is defined.
transmit to Congress a report with the U.S.
Section 5(b)(1)
strategy for correcting instances in which WTO
dispute settlement panels and Appellate Body
The procedures for considering
have added to obligations or diminished rights as
procedural disapproval resolutions are
described in Section 1(b)(3). Trade authorities
given. Section 5(b)(2)
procedures shall not apply to an implementing
bill with regard to an agreement negotiated under
Provisions covering procedural
the WTO unless the Commerce Secretary has
disapproval resolutions (Section 5(b))
issued the report in a timely manner. Section
and extension disapproval resolutions
5(b)(2)
(Section 3(c)) are enacted by Congress as
an exercise of the rulemaking power of
the House and the Senate and with full
recognition of the constitutional right of
either house to change the rules. Section
5(c)

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Section 6. Treatment of Certain Trade
Agreements for Which Negotiations Have Already
Begun
H.R. 3005 (House)
H.R. 3005 (Senate Finance Committee)
If a trade agreement under Section 3(b) (1)
Virtually Identical
is entered into under the WTO, is entered
into with Chile, is entered into with
Singapore, or establishes a Free Trade Area
for the Americas, and (2) results from
negotiations that started before enactment,
then different treatment would apply. Section
6(a)
Identical
Under that treatment, the applicability of
the trade authorities procedures to
implementing bill shall be determined
without regard to certain requirements
regarding notification before initiating
negotiations. Also, the President would be
required to notify the Congress of the
negotiations and consult regarding the
negotiations with the revenue committees,
other committees as the President deems
appropriate, and the COG. Section 6(b)

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Section 7. Congressional Oversight Group (COG)
H.R. 3005 (House)
H.R. 3005 (Senate Finance Committee)
Members and Functions
Identical
Within 60 days of enactment (and within 30 days
of convening of each Congress), the chairmen of
the revenue committees shall convene the COG.
Section 7(a)(1)
Membership will be the chairman and ranking
member of the revenue committees, 3 other
members from each of those committees (no more
than 2 of the same party), and the chairman and
ranking member from any other committees with
jurisdiction. Sections 7(a)(2) and 7(a)(3)
Members of the COG shall be official advisers to
the U.S. delegation in trade negotiations. The
COG shall consult with and provide advice to the
USTR on formulation of objectives, negotiating
strategies and positions, development of the trade
agreement, and compliance and enforcement.
Section 7(a)(4)
The COG shall be chaired by the chairmen of the
revenue committees. Section 7(a)(5)
Guidelines
Identical, except:
Within 120 days of enactment, the USTR, in
Adds that the guidelines developed by
consultation with the chairmen and ranking
the USTR shall also provide for the
members of the revenue committees, shall develop
time frame for submitting the labor
guidelines for the exchange of information between
rights report under Section 2(c)(8).
the USTR and the COG, and make revisions as
Section 7(b)(2)(E)
necessary. Section 7(b)(1)
The guidelines developed by the USTR shall
provide for, among other things: regular, detailed
briefings of the COG on negotiating objectives;
access by COG members and staff to pertinent
documents; the closest practicable coordination
between the USTR and the COG at all critical
periods of the negotiations; and after the
agreement is concluded, consultation on
compliance and enforcement. Section 7(b)(2)
Request for Meeting
Identical
Upon the request of a majority of the COG, the
President shall meet with the COG before starting
negotiations or at any other time. Section 7(c)

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Section 8. Additional Implementation and
Enforcement Requirements
H.R. 3005 (House)
H.R. 3005 (Senate Finance
Committee)
At the time the President submits to Congress the final text
Identical
of the trade agreement, the President shall also submit a plan
for implementing and enforcing the agreement. The plan shall
include (along with an analysis of the costs associated with
each): (1) a description of additional personnel required at
border entry points; (2) a description of additional personnel
required by Federal agencies for monitoring and implementing
the trade agreement; and (3) a description of the additional
equipment and facilities needed by the U.S. Customs Service;
and a description of the impact of the agreement on State and
local governments. Section 8(a)
In the first budget after the above plan is submitted, the
President shall request the resources necessary to support the
plan. Section 8(b)
Section 9. Committee Staff
H.R. 3005 (House)
H.R. 3005 (Senate Finance
Committee)
The grant of trade promotion authority is likely to increase the
Identical
activities of the primary committees of jurisdiction in
international trade. Further, more Members will participate in
the formulation of U.S. trade policy and oversight of the trade
agenda through the creation of the Congressional Oversight
Group. The primary committees of jurisdiction should have
adequate staff to accommodate these increased activities.

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