Order Code RL31070
Report for Congress
Received through the CRS Web
Trade Legislation in the 107th Congress:
An Overview
Updated May 10, 2002
Vivian C. Jones
Analyst in International Trade and Finance
Foreign Affairs, Defense, and Trade Division
Congressional Research Service ˜ The Library of Congress
Trade Legislation in the 107th Congress: An Overview
Summary
Since the beginning of the 107th Congress, congressional leaders and the Bush
Administration have placed international trade issues high on the legislative agenda.
Legislation was introduced during the first session to provide trade promotion (“fast-
track”) authority to the President, to rewrite export control provisions, and to revise
trade remedy laws. Congress approved a free trade agreement with Jordan and a
bilateral agreement with Vietnam. Legislation has also been introduced to reauthorize
the Generalized System of Preferences and the Andean Trade Preference.
This report provides an overview of major trade bills considered by Congress
in 2001 and discusses the background and recent legislative developments for each
issue. An appendix listing significant trade legislation and the status of each bill is
also provided.
The Bush Administration has requested that the President be provided trade
promotion authority as soon as possible so that U.S. trade officials might have
increased credibility when engaging in future international trade
negotiations—including talks on the free trade area of the Americas and an imminent
new round of World Trade Organization negotiations. A bill providing this authority
was passed by the House on December 6, 2001.
Other legislation passed by the House during the first session of the 107th
Congress included an amended extension of the Andean Trade Preference Act and
a measure to extend the Trade Adjustment Assistance Program for firms and
workers. The Senate has passed a reauthorization of the Export Administration Act.
On November 10, 2001, the WTO Ministerial Conference approved the text of
the agreement for China’s entry into the WTO, and China formally acceded to the
WTO a month later. Legislation has recently been introduced to provide permanent
normal trade relations to Russia pursuant to its desire to accede to the WTO.
Specific domestic industries, including lumber and steel, have also been subjects
of congressional interest. The U.S. lumber industry is seeking relief from Canadian
softwood lumber imports following the expiration of an agreement with Canada. The
steel industry is seeking relief from increased import competition, and has requested
that the President provide the industry with “Section 201” protection. Trade remedy
reform may also be addressed, especially with regard to Section 201.
Many Members have expressed the hope that Congress and the Administration
will be able to come together to reach consensus on a broad trade agenda. Some
believe, however, that failure to reach at least a partial consensus on trade could put
at risk the leadership role the United States has held in global trade negotiations.
Contents
Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Current Status of Legislation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Trade Promotion (“Fast-Track”) Authority . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Background . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Recent Developments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Trade Agreements and Trade Preferences . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
United States—Jordan Free Trade Agreement . . . . . . . . . . . . . . . . . . . . . . . 4
Background . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Legislative Developments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Vietnam Bilateral Trade Agreement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Background . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Legislative Developments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Trade Relations with China . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Background . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Legislation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Normal Trade Relations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Background . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Recent Developments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Legislation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Andean Trade Preference Act Extension . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Background . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Recent Developments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Generalized System of Preferences Extension . . . . . . . . . . . . . . . . . . . . . . . 10
Background . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
Recent Developments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
Legislation Affecting Exports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Export Administration Act . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Background . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Recent Developments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Legislation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
Export-Import Bank Reauthorization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
Background . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
Recent Developments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
Congressional Action Affecting Specific Industries . . . . . . . . . . . . . . . . . . . . . . 15
U.S.—Canada Softwood Lumber Debate . . . . . . . . . . . . . . . . . . . . . . . . . . 15
Background . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
Recent Developments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
Legislation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
U.S. Steel Industry Issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
Background . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
Recent Developments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
Legislation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
Trade Remedies Reform and Other Administrative Issues . . . . . . . . . . . . . . . . . 20
Section 201 Reform . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
Background . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
Legislation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
WTO Rulings, and Amendments to U.S. Laws . . . . . . . . . . . . . . . . . . . . . . 21
Background . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
Copyright Dispute . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
Antidumping Act of 1916 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
The “Byrd Amendment” . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
Foreign Sales Corporation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
NAFTA and the Mexican Trucking Dispute . . . . . . . . . . . . . . . . . . . . . . . . 25
Background . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
Recent Developments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
Trade Adjustment Assistance for Firms, Industries, and Workers . . . . . . . 26
Background . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
Recent Developments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28
Appendix: Trade Legislation in the 107th Congress . . . . . . . . . . . . . . . . . . . . . . . 29
Trade Promotion Authority . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
Trade Agreements and Trade Preferences . . . . . . . . . . . . . . . . . . . . . . . . . . 30
Legislation Affecting Exports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34
Legislation Affecting Specific Industries . . . . . . . . . . . . . . . . . . . . . . . . . . . 37
Trade Remedies and Other Administrative Reform . . . . . . . . . . . . . . . . . . 38
Trade Legislation in the 107th Congress:
An Overview
Introduction
Congressional leadership in both houses of Congress placed trade issues high
on the legislative agenda at the beginning of the 107th Congress. Legislation has
been introduced, and in many cases acted on, to provide trade promotion (“fast-
track”) authority for the President, to approve several previously negotiated trade
agreements, to reauthorize certain trade preferences, to rewrite export control
statutes, and to revise trade remedy laws. President Bush has presented a
comprehensive trade agenda highlighting trade expansion and liberalization, and has
requested that he be provided with trade promotion authority as soon as possible.
The possibility has been raised that an omnibus bill may be introduced to address
trade legislation still pending in 2002.
This report provides an overview of major trade bills considered by Congress
in 2001-2002 and discusses the background and recent legislative developments for
each issue. The first section deals with legislation introduced to provide trade
promotion (“fast track”) authority to the President. The second section discusses the
recently enacted trade agreements with Jordan and Vietnam, the status of the U.S.
grant of permanent normal trade relations treatment for China and Russia, and the
pending reauthorization of certain trade preferences. The third section mentions
legislation affecting exports, including reauthorization of the Export Administration
Act and the Export-Import Bank. The fourth section discusses congressional and
administrative action with respect to specific industry sectors, including softwood
lumber and steel. The last section mentions legislation introduced to reform trade
remedy laws, pending dispute resolution settlements in the WTO and NAFTA that
involve potential legislative action, and reauthorization of Trade Adjustment
Assistance for firms and workers. An appendix listing significant trade legislation,
the status of each bill, and CRS products on the issues is also provided.
Current Status of Legislation
In the first session of the 107th Congress, congressional action has been
completed on a free trade agreement with Jordan (September 28, 2001, P.L. 107-43)
and a bilateral agreement with Vietnam (October 16, 2001, P.L. 107-152). A
legislative compromise was also worked out between both houses of Congress and
the White House on conditions under which Mexican trucking firms may be allowed
to operate in the United States (included in P.L. 107-87, December 18, 2001).
Legislation still pending in the second session includes Presidential Trade
Promotion Authority, extending the Andean Trade Preference and the Generalized
CRS-2
System of Preferences, reauthorizing the Export Administration Act and the Export
Import Bank, and extending Trade Adjustment Assistance for firms and workers.
Other legislation which might receive congressional attention includes extending
permanent normal trade relations status to Russia and efforts to reform trade
remedies including Section 201.
A measure granting Trade Promotion Authority to the President (H.R. 3005) was
passed by the House of Representatives on December 6. The Senate Finance
Committee marked up H.R. 3005 on December 12 and subsequently approved an
amended version of the bill on December 18.
Trade preferences awaiting congressional reauthorization include the Andean
Trade Preference (ATPA) and the Generalized System of Preferences (GSP). On
November 16, the House passed an amended extension of the ATPA (H.R. 3009)
which would extend the program through December 31, 2006. The Senate Finance
Committee approved an amended version of H.R. 3009 on November 29. A bill to
extend the GSP (H.R. 3010) until December 31, 2002 (and retroactively to
September 30, 2001) was reported by the House Ways and Means Committee on
October 16.
In legislation affecting exports, the Senate passed S. 149, the Export
Administration Act of 2001 on September 6, 2001. A House version of the bill (H.R.
2581) was approved by the House International Relations Committee on August 1,
and by the House Armed Services Committee on March 8, but awaits committee
action in several other committees to which it has been referred. The Export-Import
Bank’s charter was temporarily extended until March 31, 2002, in H.R. 2506, the
Foreign Operations appropriations bill (P.L. 107-115), and an additional extension
until April 30, 2002 (S. 2019) has also been passed by the Congress to allow for more
time to reach agreement on a longer-term reauthorization. A four-year
reauthorization bill (H.R. 2871) of the Bank is pending in the House, and the Senate
passed a five-year reauthorization bill (S. 1372) on March 14.
In import-related legislation, a measure to extend the Trade Adjustment
Assistance program for firms and workers (H.R. 3008) was passed by the House on
December 6. On February 4, the Senate Finance Committee reported an amended
version of S. 1209, a bill seeking to consolidate and improve TAA.
Trade Promotion (“Fast-Track”) Authority
One of the most significant issues facing the 107th Congress is whether or not
to authorize expedited enactment of trade agreements negotiated by the President.
Trade promotion authority (TPA), if granted by the Congress, means that under
certain conditions, the Congress would consent to address trade agreements
negotiated by the President without amendment and would agree to move the
measures through congressional committees and both houses of Congress within a
specific deadline.
CRS-3
Background. Article I, Section 8 of the United States Constitution gives the
Congress authority to “regulate commerce with foreign nations” and to “collect . . .
duties.” However, at certain times and for certain purposes, the Congress has
authorized the President to negotiate and proclaim reciprocal tariff reductions with
U.S. trading partners without congressional involvement. In the Trade Act of 1974
(P.L. 93-618), Congress continued to authorize the President to negotiate reciprocal
tariff reductions, and in addition, provided specific negotiating objectives, required
greater consultation between the Congress and the President during the negotiations
process, and provided certain “fast-track” procedures (mandatory deadlines, limited
debate, no amendments) for Congressional approval of non-tariff concessions. The
Trade Agreements Act of 1979 (P. L. 96-39) extended the authority another 8 years.
Executive “fast-track” was last authorized by the Omnibus Trade and
Competitiveness Act of 1988 (P.L. 100-418), which renewed the President’s fast-
track authority for agreements reached through May 1993 (the latter 2 years of the
renewal process depended on the President’s request for extension and Congress not
passing a disapproval resolution). The 1988 Act was amended by P.L. 103-49 to
extend fast-track authority for Uruguay Round agreements reached before April 16,
1994. After that, the President’s trade negotiating authority expired and, to date, has
not been renewed.1
The Bush Administration has made renewal of trade promotion authority a top
priority in its overall trade policy, and in particular had requested that Presidential
authority be granted prior to the WTO Ministerial Conference meeting held on
November 9, 2001, in Doha, Qatar.2 Because WTO trade ministers have signed a
Declaration agreeing to consider new multilateral negotiations, the Administration
believes that presidential TPA is all the more important. In a recent interview,
United States Trade Representative (USTR) Robert B. Zoellick said that TPA was
a tool the administration could not do without: “If I’m pressing my counterpart to go
to his or her bottom line, he or she is going to balk if they feel that Congress has the
ability to reopen the deal. My counterparts fear negotiating once with the
administration and then a second time with Congress.”3
In the 107th Congress, however, trade promotion authority (or fast-track) has
proven to be a divisive issue. Some members favor giving the White House the
authority it seeks, while others believe that it “preclude(s) Congress from fulfilling
its Constitutional obligations to debate, and, if necessary, to amend trade bills.”4 A
second issue concerns how labor and the environment should be treated in trade
agreements—whether strong, enforceable labor and environmental provisions should
be included, whether the President should be given discretion in enforcement of these
provisions, or whether labor and environmental considerations should be present in
1 CRS Report RS20039, Fast Track Implementation of Trade Agreements: Issues for
the 107th Congress, by Lenore Sek.
2The WTO Ministerial Conference, a body consisting of the trade ministers or other political
representatives of each member country, is the highest level policymaking body in the WTO.
3National Public Radio, “All Things Considered,” November 23, 2001.
4Byrd, Robert C. “Fast Track: A Track to Tinkering with Constitutional Authority,” press
release, November 9, 2001.
CRS-4
trade agreements at all. Third, some Members of Congress and industry groups have
expressed concern over certain concessions made by U.S. negotiators during the
Doha Ministerial Conference, in particular, the willingness to negotiate changes in
WTO rules that cover antidumping laws. A fourth issue, brought up most recently
by Senate Democrats, concerns whether or not an expansion of Trade Adjustment
Assistance (TAA) programs to aid workers hurt by trade liberalization should be
packaged together with TPA legislation. Some Senate Republicans are open to
compromise on a TAA expansion provision, but are opposed to granting affected
workers extended health care benefits, as proposed by some Democrats, due to the
high costs involved.
Recent Developments. On October 3, House Ways and Means Committee
Chairman Bill Thomas introduced H.R. 3005, the Bipartisan Trade Promotion
Authority Act of 2001, which was subsequently approved by the Committee on
October 9. The bill would authorize the President to negotiate tariff and non-tariff
trade agreements through June 30, 2005, with a 2-year extension possible under
certain conditions. On December 6, 2001, the House of Representatives ordered
reported H.R. 3005, as amended under House Rules Committee Resolution H.Res.
306 (H.Rept. 107-323) by a vote of 215-214. On February 28, the Senate Finance
Committee reported legislation in the nature of a substitute to the House-passed bill.
On October 4, Representative Rangel, the Ranking Member on the Ways and
Means Committee, and Representative Levin, the Ranking Member on the Ways and
Means Trade Subcommittee, released their own proposal, H.R. 3019, the
Comprehensive Trade Negotiating Authority Act of 2001. Ways and Means
disapproved this proposal during the October 9 markup.
On May 1, 2002, the Senate began consideration of H.R. 3009, the Andean
Trade Preference Act. S. Amdt. 3386 (Daschle), an amendment in the nature of a
substitute to H.R. 3009, is an omnibus trade package including Presidential trade
promotion authority, along with Trade Adjustment Assistance for firms and workers,
the Andean Trade Preference, Customs reauthorization, amendments to the Arms
Export Control Act, and other miscellaneous provisions.
Trade Agreements and Trade Preferences
United States—Jordan Free Trade Agreement
Jordan and the United States completed negotiations on a free trade agreement
(FTA) in October 2000, subject to implementation by legislation in order to take
effect. On September 28, 2001, H.R. 2603, the text of the agreement as passed by
the House and Senate, became P.L. 107-43.
Background. The failure of Jordan to participate in the Gulf War coalition
against Iraq caused some U.S. concern. However, Jordan demonstrated its desire for
stability in the Middle East by signing a peace agreement with Israel in October 1994.
Since that time, Congress and the Clinton Administration had desired to provide
Jordan with a “peace dividend” by providing Jordan with greater access to the U.S.
CRS-5
market. Trade negotiations were begun by the Clinton Administration and King
Abdullah II of Jordan on June 6, 2000, and signed on October 24, 2000. The
agreement was presented to the 107th Congress for implementation on January 6,
2001 by then President Clinton.
The free trade agreement (FTA) with Jordan provides that over a 10-year period
the duties on almost all goods will be phased out, leading to duty-free trade between
the United States and Jordan. Certain controversial provisions in the agreement
involved non-tariff issues, including language on labor rights and environmental
protection that appear as an integral part of the FTA, rather than as side agreements.
The U.S.-Jordan FTA has led some Members of Congress to address the issue of
whether or not environmental and labor provisions should be included in this
agreement or any future FTA that the United States may negotiate. Some Members
of Congress have argued that the environmental and labor provisions in the
U.S.-Jordan FTA should be viewed uniquely and not as a model for future trade
agreements. Other Members have expressed pleasure at the inclusion of
environmental and labor provisions in the U.S.-Jordan FTA and view them as a
precedent for future FTA's.5
The economic effects of the Jordan FTA on the U.S. market are not expected to
be dramatic because the level of trade (imports $73 million, exports $313 million)
is relatively small. In addition, many top exports from Jordan already enter duty-free
under normal tariff treatment or the Generalized System of Preferences. However,
U.S. imports of textiles and apparel from Jordan are expected to expand, as are U.S.
exports to Jordan.6
Legislative Developments. On July 26, 2001, the House Ways and Means
Committee reported H.R. 2603 (H.Rept. 107-176, Part I) by voice vote. The full
House subsequently passed the measure on July 31. The Senate Finance Committee
reported a related measure, S. 643 (S.Rept. 107-59) on September 4, also by voice
vote. On September 24, Senate Finance discharged H.R. 2603 by unanimous consent.
The Senate approved H.R. 2603 by voice vote on the same date. President Bush
signed the measure on September 28 (P.L. 107-43).
Vietnam Bilateral Trade Agreement
The United States and Vietnam signed a bilateral trade agreement (BTA) in July
2000. The Bush Administration expressed support for the measure and transmitted
it to the Congress for approval on June 8, 2001. Because Vietnam is a “nonmarket
economy country” (NME), the BTA requires congressional approval by joint
resolution, in accordance with a specific expedited procedure as required by Title IV
of the Trade Act of 1974. In addition, a Presidential waiver must be granted in
compliance with freedom-of-emigration requirements of the so-called Jackson-Vanik
amendment.
5CRS Trade Electronic Briefing Book, “Jordan-U.S. Free Trade Agreement,” by Lenore Sek
[http://www.congress.gov/brbk/html/ebtra117.html].
6CRS Report RL30652, U.S.-Jordan Free Trade Agreement, by Mary Jane Bolle.
CRS-6
Background. The United States has restricted trade to Vietnam in some form
since 1951, when the U.S. denied most-favored nation status (MFN, also known as
normal trade relations [NTR]) to communist-controlled areas of North Vietnam.
After communist North Vietnam defeated U.S.-backed South Vietnamese forces in
1975, the U.S. suspended NTR status for the entire country and imposed a trade
embargo that was not lifted until 1994. A presidential waiver of Jackson-Vanik
requirements was first granted in April 1998 and since then has been extended
annually. Although such extensions may be disapproved by the enactment of a joint
resolution of Congress, all past attempts at disapproval have failed. A joint
resolution to disapprove the latest extension (June 1, 2001) was defeated in the
House on July 26, 2001.
A Jackson-Vanik waiver (Section 402 of the Trade Act of 1974, 19 U.S.C.
2432) with regard to Vietnam, at present, permits U.S. businesses to receive U.S.
government financial support from the U.S. Overseas Private Investment Corporation
(OPIC) and the Export-Import Bank for their transactions with Vietnam. However,
despite the waiver currently in effect, Vietnam cannot receive temporary normal
trade relations (NTR) status until the bilateral trade agreement is approved by a joint
resolution of Congress. Therefore, even with a waiver, Vietnam’s non-NTR status
with regard to import tariffs cannot change unless the BTA is approved by law.
The United States and Vietnam concluded negotiations and signed the BTA on
July 13, 2000. President Clinton did not submit the agreement to the 106th Congress,
however, citing the crowded congressional schedule. As with most trade agreements
with nonmarket economies, the BTA would remain in effect for a three-year period
and would be extended automatically unless renounced by either party. The
agreement would reduce average U.S. tariffs on imports from Vietnam from 40% to
less than 3% overall. In return, Hanoi has agreed under the BTA to initiate a wide
range of market-liberalization measures, including extending NTR treatment to U.S.
exports, reducing tariffs on U.S. goods, easing barriers to U.S. services (such as
banking and telecommunications), protecting certain intellectual property rights, and
providing additional inducements and protections for inward foreign direct
investment.7
Under the provisions outlined in Title IV of the Trade Act of 1974 and Section
151(c)(2) of the Act, once the BTA is transmitted to the Congress, an approval
resolution (in mandatory language) must be introduced and considered under a
specific expedited procedure, under which amendments are not permitted in either
chamber. An overall maximum 75-day deadline is imposed for consideration,
including 45 session-days for committee work in both houses and 15 session-days in
each chamber for floor debate.8
7CRS Report RL30416, The Vietnam-U.S. Bilateral Trade Agreement, by Mark E. Manyin
and CRS Report RS20717, Vietnam Trade Agreement: Approval and Implementing
Procedure, by Vladimir N. Pregelj.
8Ibid., and CRS Report 98-545 E, The Jackson-Vanik Amendment: A Survey, by Vladimir
N. Pregelj.
CRS-7
Legislative Developments. H.J. Res 51 was passed by voice vote in the
House on September 6, and in the Senate on October 3 (yeas 88, nays 12, Record
Vote Number 291). The President signed the measure on October 16, 2001 (P.L.
107-152). The BTA entered into force on December 10, 2001, when the two
countries formally exchanged letters implementing the agreement. Vietnam's
National Assembly had ratified the BTA on November 28, 2001, by a vote of 278-85,
and Vietnamese President Tran Duc Luong signed the agreement into law on
December 7.
Trade Relations with China
On June 1, 2001, President Bush issued a determination to extend China’s
Jackson-Vanik waiver for an additional year. The waiver was challenged by a
disapproval resolution in the House of Representatives. Other measures with respect
to China have included proposals to revoke China’s NTR status.
Background. On November 15, 1999, the United States and China reached
a comprehensive bilateral trade agreement providing China with permanent normal
trade relations (NTR) status and normalizing broad economic relations between the
two countries. This grant of NTR status to China was subsequently authorized by
P.L. 106-286, enacted on October 10, 2000. The trade agreement with China also
constituted an essential component of China’s accession to the WTO 9
Although the Congress has no direct role to play in China’s accession to the
WTO, the status of accession negotiations is of interest because the provisions of P.L.
106-286 may not take effect before China becomes a WTO member. In addition,
opponents of permanent NTR for China have introduced legislation to withdraw the
NTR treatment of China by the United States.
In order to join the WTO, China must change many laws, institutions, and
policies to bring them into conformity with international trading rules. U.S. trade
officials insisted that China’s entry be based only on “commercially meaningful
terms” that would require it to lower trade and investment barriers within a relatively
short period of time. American companies have often had difficulty doing business
in China, mainly because of Chinese government policies designed to protect
domestic industries. Many analysts have questioned the ability and willingness of
the Chinese to fully implement its WTO commitments. If the USTR’s annual report
finds serious deficiencies in Chinese compliance or if U.S. exports fail to increase
significantly, Congress may press the Administration to file WTO dispute resolution
cases against China.10
On November 11, 2001, the WTO Ministerial Conference in Doha, Qatar
formally adopted the text of China’s WTO agreement. China has notified the WTO
9CRS Report RL30225, Most-Favored Nation Status of the People’s Republic of China, by
Vladimir N. Pregelj.
10CRS Report RS20139, China and the World Trade Organization, by Wayne Morrison.
CRS-8
that the agreement has been ratified in its national parliament, and China officially
acceded to the WTO on December 11.11
Legislation. H.J.Res. 50 (Rohrabacher, introduced June 5, 2001), sought to
disapprove the extension of waiver authority to China. The Ways and Means
Committee reported the bill adversely by voice vote (H.Rept. 107-145) on July 12.
On July 19, the measure failed in the House (169 yeas, 259 nays, Roll no. 255).
Normal Trade Relations
The United States currently extends normal trade relations (NTR) status to
Russia on a temporary, periodically renewable basis in accordance with the
provisions of Section 402 of the Trade Act of 1974, commonly known as the
Jackson-Vanik amendment. The Bush Administration is supporting the extension of
permanent NTR status to Russia.
Background. The Jackson-Vanik amendment was a direct U.S. reaction to
the severe restrictions the Soviet Union had placed in 1972 on the emigration of its
citizens, but was expanded in scope to apply to all “non-market economy” (NME)
countries. The amendment requires compliance with specific free-emigration criteria
as a key condition for the restoration of certain economic benefits in their economic
relations with the United States.12
The United States extended temporary NTR (or MFN) to Russia under the
presidential waiver authority beginning in June 1992. Since September 1994, Russia
has received NTR status under the full compliance provision of the Jackson-Vanik
amendment. Presidential grants of NTR status to Russia have not met with strong
congressional opposition.13
Recent Developments. During the November summit meeting with Russian
President Putin in Washington and Crawford, Texas, President Bush stated that he
would work with the Congress to obtain permanent normal trade relations status for
Russia. On December 20, just before the close of the first session of the 107th
Congress, House Ways and Means Committee Chairman Bill Thomas introduced a
bill to provide nondiscriminatory treatment to products from Russia. A similar bill
was introduced in the Senate by Senator Richard Lugar.
Legislation. H.R. 3553 (Thomas, introduced December 20, 2001) would
provide for the extension of nondiscriminatory treatment (normal trade relations
treatment) to the products of the Russian Federation. The bill has been referred to
the Ways and Means Committee. S. 1861 (Lugar) introduced a similar measure in
the Senate on the same date. This bill has been referred to the Senate Finance
Committee.
11Ibid.
12CRS Report 98-545 E, The Jackson-Vanik Amendment: A Survey, by Vladimir Pregelj.
13CRS Report 96-463 E, Country Applicability of the U.S. Normal Trade Relations (Most-
Favored-Nation) Status, by Vladimir Pregelj.
CRS-9
Bills have also been introduced to provide permanent NTR status to
Afghanistan (H.R. 3440), Cuba (H.R. 796, S. 401), Kazakhstan (H.R. 1318, S. 168),
Ukraine (H.R. 3939), and Uzbekistan (H.R. 3979). All of these bills are currently
in committee.
Andean Trade Preference Act Extension
The Andean Trade Preference Act (ATPA) extends trade privileges to four South
American countries. The preference, which expired on December 4, 2001, is designed
to redirect economic development away from illicit coca cultivation and cocaine
production. In the 107th Congress, legislation to expand and extend the preference has
been passed by the House of Representatives. Similar, but less expansive legislation
has been approved by the Committee on Finance, but has not as yet been considered
by the full Senate.
Background. Following passage by the 102nd Congress, President George Bush
signed into law the Andean Trade Preference Act on December 4, 1991 (Title II of P.L.
102-182). The ATPA provides reduced-rate or duty-free treatment for imports from
Bolivia, Colombia, Ecuador, and Peru. It is intended to improve access to the U.S.
market for farmers and businesses in an effort to diminish the illegal production of
drugs in these countries. Extension of the Act is expected to depend largely on (1)
whether there have been any adverse affects to the U.S. economy as a result of the
measure, and (2) an assessment of the preference’s effectiveness as a tool for economic
diversification and growth.14 The Bush Administration favors reauthorization and
expansion of the Act to provide broad-ranging benefits, at least equivalent to the trade
preferences given to Caribbean Basin Trade Partnership countries. Opponents of the
legislation, however, have cited the adverse impact of imports on U.S. industries and
negligible benefits to U.S. consumers as reasons not to extend the preference.
Recent Developments. On October 5, 2001, the House Ways and Means
Committee reported an amended extension of the ATPA entitled the Andean Trade
Promotion and Drug Eradication Act (H.R. 3009, H.Rept. 107-290). The House
passed this bill on November 16. The bill would extend the ATPA through December
31, 2006, and would provide more expansive benefits to Andean exports. Apparel
items assembled in beneficiary countries from U.S.-made fabrics using U.S.-made yarn
would get unlimited duty-free access, as would processed tuna. Apparel items
assembled from regional fabrics using U.S.-made yarn would get quantity-limited
duty-free access. Other product groups previously excluded from duty-free treatment,
including footwear, petroleum, watches and watch parts, handbags, and other leather
goods, would be eligible for duty-free treatment provided the President determines that
they are not “import sensitive.” The bill would also expand the conditions countries
need to meet to qualify for these benefits.
14CRS Report RL30790, The Andean Trade Preference Act: Background and Issues for
Reauthorization, by J. F. Hornbeck, and CRS Issue Brief IB95017, Trade and the Americas,
by Raymond J. Ahearn. United States Trade Representative, Third Report to the Congress
on the Operation of the Andean Trade Preference Act, January 4, 2001.
CRS-10
On November 9, 2001, the Senate Finance Committee reported an amended
version of H.R. 3090, the Economic Security and Recovery Act. Title V of the Senate
bill sought to renew certain expiring trade legislation, including a 6-month extension
of the ATPA through June 4, 2002. It would not amend the current program. The
House version of this bill, which did not contain the Andean trade provision, passed
on October 24 (yeas 216, nays 214) and was received in the Senate on the same day.
The Senate Finance Committee amendment of H.R. 3090 was withdrawn during floor
debate on November 14.
On November 29, the Senate Finance Committee ordered reported an amendment
in the nature of a substitute to H.R. 3009 (S.Rept. 107-126), containing the substance
of S. 525 (originally introduced by Senator Graham on March 13, 2001) with
amendments to the original bill. The Senate Finance Committee version of H.R. 3009
would amend and extend the provision through February 28, 2006. The bill allows
new unlimited duty-free access to non-knit-to-shape apparel assembled in a beneficiary
country from entirely U.S.- made fabrics and yarns. Limited duty-free access would be
provided to apparel articles knit-to-shape (except socks) from U.S.-yarns or from
U.S.-made knit-to-shape components. Benefits to the non-knit-to-shape items would
be similar to those provided eligible countries under the NAFTA and the Caribbean
Basin Trade Partnership Act. Similarly, some products exempt from ATPA benefits,
including footwear, petroleum, watches and watch parts, sugars, and rums would get
NAFTA-equivalent treatment. For most commodities, this amounts to duty-free access.
The committee also approved an amendment that would allow a more limited amount
of canned tuna to be imported from the region duty free.15
On April 25, 2002, the Senate began consideration of a measure to limit debate
on H.R. 3009. The Senate invoked cloture on the motion to proceed on April 29 (yeas
69, nays 21). The motion to proceed on the measure was agreed to on May 1 (yeas 77,
nays 21). On May 1, Senate Finance Committee chairman Baucus withdrew the
committee’s amendment to H.R. 3009. Majority Leader Daschle subsequently offered
an amendment in the nature of a substitute to the bill (S.Amdt. 3386). This bill
includes the Senate ATPA language along with Presidential trade promotion authority,
along with Trade Adjustment Assistance for firms and workers, Customs
reauthorization, amendments to the Arms Export Control Act, and other miscellaneous
provisions. The bill is currently being considered in the Senate.
Generalized System of Preferences Extension
The Generalized System of Preferences (GSP) expired at the end of September
2001, and has not yet been extended by the 107th Congress. Budgetary constraints have
previously been the primary impediment to a long-term authorization for GSP, since
the reduction of tariff revenues under the GSP must be offset by decreased spending
or increased revenues elsewhere.
Background. The GSP is a broad, WTO-sanctioned program whereby
individual industrialized countries unilaterally provide preferential trade treatment to
15CRS Trade Electronic Briefing Book, The Andean Trade Preference Act, by J. F.
Hornbeck. [http://www.congress.gov/brbk/html/ebtra127.html].
CRS-11
imports from less-developed countries (LDCs). The United States currently recognizes
142 countries as “beneficiary developing countries” (BDCs) of the GSP. Of these, 41
are considered “least-developed developing countries” (LDDCs).
The U.S. GSP allows duty-free importation of a large array of otherwise dutiable
products from LDCs designated as “beneficiary developing countries” of the program.
The law provides specific criteria for the designation of a country as a BDC and for the
eligibility of individual products for the preferential treatment. The U.S. provision
also contains rules for a country's (temporary) suspension or, once a BDC becomes a
“high-income” country, (permanent) “graduation” from the program. Certain
categories of products designated as “import-sensitive” are specifically exempted from
the GSP. The overall eligibility of certain products can be suspended or terminated. In
addition, under the so-called competitive need formula, an individual BDC’s eligibility
to with respect to specific articles can be suspended when such imports under the
preference from that country exceed a certain ceiling.16
U.S. imports under the GSP amounted to $16,433.2 million in 2000, accounting
for 9.5% of total imports from BDCs and 1.4% of all U.S. imports. U.S. GSP
provisions were extended through September 30, 2001 by Section 508 of P. L. 106-
170. The preference itself, with additional benefits (comparable to the CBTPA) has
been extended, in addition, through 2008 to certain sub-Saharan African countries
by the African Growth and Opportunity Act (AGOA, Title I of P.L. 106-200).
Therefore, beneficiary countries designated under AGOA will continue to receive the
enhanced trade benefits under GSP provisions until then, even if the GSP for other
countries is not reauthorized.17
The Bush Administration strongly supports GSP reauthorization. On the other
hand, opponents to the measure argue that the tariff preferences under the program may
benefit some countries disproportionately, may encourage inefficient trade and
production patterns in developing nations, and may lead to lax enforcement of U.S.
trade laws such as preservation of intellectual property rights and observance of worker
rights.
Recent Developments. On October 15, 2001, the House Ways and Means
Committee reported, without amendment, H.R. 3010, which would extend the current
GSP program to December 31, 2002, retroactively to September 30, 2001 (H.Rept 107-
245).
Section 501 of the Senate Finance Committee’s version of H.R. 3090 (Thomas,
introduced October 11, 2001), the Economic Security and Recovery Act, sought to
extend the Generalized System of Preferences to December 31, 2002. The House
version of this bill, which did not contain the GSP provision, passed on October 24
(yeas 216, nays 214) and was received in the Senate on the same day. The Senate
16CRS Trade Electronic Briefing Book, “Generalized System of Preferences, by Vladimir
M. Pregelj [http://www.congress.gov/brbk/html/ebtra29.html].
17CRS Report 96-389 E, Generalized System of Preferences, by William H. Cooper.
CRS-12
Finance Committee reported its version of H.R. 3090 on November 9, but the
amendment was withdrawn during floor debate on November 14.
On November 9, Senate Finance Committee Chairman Baucus introduced S.
1671, a bill seeking to provide duty-free treatment under the GSP for certain hand-
knotted or hand-woven carpets and leather gloves.
Legislation Affecting Exports
Export Administration Act
The United States controls certain exports to protect national security, to prevent
domestic shortages and inflation, and to promote U.S. foreign policy objectives.
Efforts are underway in the 107th Congress to rewrite and enact a permanent
replacement for the Export Administration Act of 1979 (EAA). Past efforts to
reauthorize the Act have been affected by the continuing tension between national
security and commercial interests.18
Background. The Export Administration Act (P.L. 96-52, as amended, 50
U.S.C.2401, et seq.), is a law designed to place controls on the export of “dual-use
commodities,” or certain designated items that have both civilian and military
application. The provision expired on August 20, 2001, after having been extended
on November 13, 2000 (P.L. 106-508), and retroactively to August 20, 1994. On
August 17, 2001, President Bush invoked the authorities granted by the International
Emergency Economic Powers Act (IEEPA, 50 U.S.C. 1703(b)) as implemented under
the authority of Executive Order No. 12924 of August 19, 1994, to effect the system
of controls contained in the Export Administration regulations (15 C.F.R. Parts 730-
799) as President Clinton had done between 1994 and 2000.
Substantial effort was given to rewrite the EAA in the 106th Congress (S. 1712)
but the legislation faced strong opposition from some Senators concerned with national
security aspects of the legislation. The EAA was extended temporarily with the
expectation that legislation to rewrite the provision would be reintroduced in the 107th
Congress.19
Recent Developments. On August 17, 2001, President Bush continued
export control authority and the Export Administration Regulations (EAR) under the
International Emergency Economic Powers Act (IEEPA).20 On September 6, 2001, the
Senate passed S. 149 after three days of debate.
18CRS Trade Electronic Briefing Book, “Export Controls,” by Ian F. Fergusson.
[http://www.congress.gov/brbk/html/ebtra26.html].
19CRS Report RL30689, The Export Administration Act: Controversy and Prospects, by Ian
F. Fergusson.
20Executive Order 13222 of August 17, 2001 (66 FR 44025).
CRS-13
H.R. 2581 was reported, as amended, by the House International Relations
Committee on November 16, and by the House Armed Services Committee, as
amended, on March 8. Also on March 8, the bill was discharged by the various other
committees to which it had been assigned.
The House Armed Services Committee version of H.R. 2581 contains a number
of controversial amendments, including the restoration of statutory authority for the
Military Critical Technology List (MCTL), a list of composed of items deemed by the
Defense Department as “critical to the United States military maintaining or advancing
its qualitative advantage and superiority relative to other countries or potential
adversaries.” This provision gives the Secretary of Defense sole authority to add or
remove items from the MCTL, and the export of an item on the list must be approved
by the Secretary of Defense.21
Many industry groups are concerned that the measures approved by both House
committees to strengthen national security could endanger continued U.S. leadership
in high technology industries subject to export controls. Others believe, however, that
efforts to reform EAA should be concerned less with U.S. commercial interests and
more with effective controls placed on high technology exports to prevent them from
falling into the hands of terrorists, violators of human rights, and proliferators of
weapons of mass destruction.
Legislation. S. 149 (Enzi, introduced January 23, 2001), the Export
Administration Act of 2001, seeks to provide new authority for control of exports.
Hearings were held in the Committee on Banking, Finance, and Urban Affairs on
February 7 and 14, 2001, and the bill was reported favorably on April 2 (S.Rept. 107-
10). The bill was passed by the Senate on September 6, 2001 (yeas 85- nays 14, Record
Vote No. 275). H.R. 2581 (Gilman, as introduced on July 20) was identical to S. 149
except for the additions of provisions related to oversight of nuclear transfers to North
Korea. At the August 1 markup session, the House International Relations Committee
ordered the bill reported with 35 amendments (yeas and nays, 26 -7). The bill was
subsequently reported on November 16.22 The House Armed Services Committee
reported an amended version of the bill on March 8, 2002.
In addition, bills seeking a three-month extension of EAA 1979 were passed by
the House (H.R. 2602 and H.R. 3189) and placed on the Senate calendar during the
2001 session.
Export-Import Bank Reauthorization
Authority for the Export-Import Bank (Eximbank), the chief Federal agency that
helps finance and promote U.S. exports, expired on September 30, 2001, but its
activities were extended by continuing resolution through January 10, 2002. The
Foreign Operations Appropriations bill (H.R. 2506, P.L 107-115) provided a further
21CRS Report RL30169, Export Administration Act of 1979 Reauthorization, coordinated
by Ian F. Fergusson.
22For a detailed analysis and comparison of both bills, see CRS Report RL30169: Export
Administration Act of 1979 Reauthorization., Ian Fergusson, coordinator.
CRS-14
temporary extension of the Eximbank’s charter until March 31, 2002, but additional
legislative attention is required to reauthorize the bank for a longer period.
Background. The Export-Import Bank finances around 2% of exports per year
with a budget of nearly $1 billion by providing loan guarantees and insurance to
commercial banks so that they, in turn, can make trade credits available to American
exporters. It also provides direct financing on a limited basis, primarily to counter
subsidized trade credits offered to foreign exporters by their governments. The
Eximbank uses its authority and resources to (1) assume commercial and political risks
that exporters or commercial financial institutions are unwilling, or unable to undertake
alone; (2) overcome maturity and other limitations in private sector export financing;
(3) assist exporters to be more competitive when met with foreign officially sponsored
export credit competition; and (4) provide guidance and advice to U.S. exporters and
commercial banks and foreign borrowers.23
Eximbank’s government-sponsored finance programs have long been
controversial. In the 107th Congress, some Members have expressed their opposition
to the Bank, in part because they believe that its function is no longer necessary and
because it could unfairly favor some businesses over others. Others have indicated
their willingness to support the Bank but believe the Eximbank’s charter should be
amended to focus its activities more narrowly. Other Members have expressed their
support for the Bank and argue that it fills an important gap in the export credit market.
Recent Developments. On July 24, 2001, the House passed H.R. 2506, the
Foreign Operations, Export Financing, and Related Programs appropriations bill for
FY2002. During debate, the House voted in favor of an amendment by Representative
Visclosky to reduce the funding of the Bank by $18 million in response to a
controversial $18 million loan guarantee made by the Bank to the Deutsche Bank of
North America, which, in turn, made a loan to the Industrial and Commercial Bank of
China for modernization of the Benxi Iron and Steel Company’s hot strip mill.24
On October 24, 2001, the Senate passed H.R. 2506. The Senate version of the bill
restored the $18 million, appropriating $753 million in subsidy costs and $64 million
in administrative expenses for the Bank. Both the House and Senate versions of the
bill would appropriate approximately $120 million more than the President requested.
The conference report accompanying H.R. 2506 (H.Rpt. 107-345) was passed by the
House on December 19, and the Senate on December 20. The President signed the
appropriations bill on January 10, 2002 (P.L. 107-115).
As enacted, H.R. 2506 provides $779 million, slightly below House and
Senate-passed levels, but $92 million higher than the President’s budget request.
23 CRS Report 98-568 E, Export-Import Bank: Background and Legislative Issues, by James
K. Jackson.
24See 147 Cong. Rec. H4438, July 24, 2001. H. AMDT. 208 (Visclosky, introduced July
24, 2001) to reduce Export-Import Bank Subsidy Appropriations by $15 million and
Administrative Expenses by $3 million and increase funding for Child Survival and Health
Programs Fund by $5 million for vulnerable children programs and $13 million for
HIV/AIDS programs. Agreed to by recorded vote (258-162) Roll no. 260.
CRS-15
Conferees noted that the appropriation would provide the Eximbank with an authorized
operation level of $10.6 billion, about 15% higher than for FY2001. As an interim
measure, the Foreign Operations Appropriations further extends the Bank's operating
authority to March 31, 2002.25 A second interim measure (S. 2019) passed by the
Senate on March 14 and by the House on March 19 seeks to extend its authority
through April 30. This bill was signed by President Bush on March 31, 2002 (P.L. 107-
156).
On October 31, 2001, the House Committee on Financial Services marked up and
approved H.R. 2871, the Export-Import Bank Reauthorization Act of 2001. The bill,
and its companion bill S. 1372 (Sarbanes) would extend the authority of the Eximbank
through fiscal year 2005. H.R. 2871 was reported to the House on November 15. S.
1372, as amended, passed the Senate on March 14.
Congressional Action Affecting Specific Industries
U.S.—Canada Softwood Lumber Debate
A 5-year softwood lumber agreement26 with Canada expired on March 31, 2001.
Alternative measures are currently being negotiated. The U.S. lumber industry and its
supporters argue that pricing policies used in Canada amount to government
subsidization of the lumber industry, and have filed countervailing and antidumping
petitions with the relevant U.S. federal agencies. On the other hand, U.S. homebuilders
and other lumber consumers counter that Canadian lumber is essential to meeting U.S.
domestic demand, and argue for unrestricted imports. Several bills have been
introduced in the 107th Congress reflecting both sides of the softwood lumber debate.
Background. The Canadian share of the U.S. lumber market has amounted to
33-35% since 1995, a percentage that many U.S. lumber producers and industry
supporters consider injurious to normal domestic growth. On the other hand, many
U.S. homebuilders and other lumber consumers have protested that Canadian lumber
is essential to meeting U.S. demand.
Canadian lumber imports have been of concern to U.S. lumber industry for
decades, due largely to disparate pricing polices in Canada and the United States. In
the United States, where 58% of all forests are privately owned, timber from both
public and private sources is either auctioned off or sold at market prices. In Canada,
however, approximately 90% of all Canadian forests are owned by the provinces and
“stumpage fees” (fees paid for the right to harvest trees) are determined
25CRS Report RL31011, Appropriations for FY2002: Foreign Operations, Export
Financing, and Related Programs, by Larry Nowells.
26For additional historical information, a summary of U.S. AD and CVD rulings on softwood
lumber, and further explanation of WTO proceedings, see CRS Issue Brief IB10081, Lumber
Imports from Canada: Issues and Events, by Ross W. Gorte and Jeanne Grimmett, and
“Softwood Lumber Imports from Canada” by Ross W. Gorte in the CRS Trade Electronic
Briefing Book [http://www.congress.gov/brbk/html/ebtra119.html].
CRS-16
administratively. Because the lumber is being sold non-competitively by provincial
governments, U.S. producers contend that the lower price of the lumber amounts to a
government subsidy of the Canadian lumber industry.
Of additional concern to the U.S. lumber industry is the general prohibition of log
exports by the Canadian province of British Columbia in order to ensure domestic
production, job creation, and economic development. Some have alleged that this
practice amounts to an additional government subsidy that further reduces the price of
Canadian lumber to below world market prices, as the U.S. International Trade
Administration determined in a 1992 countervailing duty (CVD) case.
Canadian industry and government officials insist that the stumpage systems used
to price Canadian lumber do not subsidize exports and point out successive U.S.
investigations of Canadian forestry practices have failed to prove illegal subsidy. They
state further that Canada has compromised repeatedly with the United States to
forestall a trade war over one of the country's most important export commodities.
The U.S. Coalition for Fair Lumber Imports has recently filed both CVD and
antidumping (AD) petitions, charging that Canadian lumber, subsidized by the
government and/or sold at less than fair market value, is being sold in the U.S. market,
thus causing harm to the U.S. lumber industry. Commerce Secretary Donald Evans has
indicated possible Bush Administration support for a “critical circumstances”
determination that would allow the U.S. industry expedited provisional relief from the
imports.
The Canada-U.S. softwood lumber debate has also been carried out in the WTO,
where there are two cases currently pending.
Recent Developments. On May 17, 2001, the U.S. International Trade
Commission (ITC) made an affirmative preliminary injury determination in both the
AD and the CVD case, saying that “there is a reasonable indication that an industry in
the United States is threatened with material injury by reason of imports from Canada
of softwood lumber.”27
This ITC determination was followed by an August 17 affirmative preliminary
determination in the CVD case by the International Trade Administration (ITA) of the
Department of Commerce. ITA also issued a finding of “critical circumstances,” citing
a surge of imports of softwood lumber from April to June of 2001. As a result of its
preliminary determination, ITA has (1) ordered that each entry of the subject
merchandise from Canada must be secured by the posting of cash deposits or other
security based on the estimated dumping margin or net countervailable subsidy (in this
case, the net subsidy rate was calculated as 19.31 percent ad valorem), and (2) ordered
the suspension of liquidation of all entries of the merchandise from the date its
preliminary determination was published. Due to the critical circumstances finding,
these conditions will be applied retroactively to as yet unliquidated imports 90 days
27 U.S. International Trade Commission Investigations Nos. 701-TA-414 and 731-TA-928
(Preliminary). Publication No. 3426, May 2001,
[http://www.usitc.gov/7ops/7opsindex.htm ].
CRS-17
prior to the publication of the preliminary determination. On November 6, 2001, ITA
announced an affirmative preliminary determination in the AD case, and imposed
additional antidumping duties on Canadian lumber ranging from 5.94% to 19.24%.
On March 22, 2002, ITA announced its final determinations in the Canadian
softwood lumber investigation, finding that Canadian producers and exporters of
softwood lumber have both benefitted from countervailable subsidies and have sold
their products in the United States at below fair market value. The provinces of New
Brunswick, Nova Scotia, Prince Edward Island, and Newfoundland were excluded
from the countervailing duty investigation, as were certain Canadian companies. The
final subsidies margin assessed was 19.34%, and an average antidumping margin of
9.67% was assessed.
Legislation. Measures introduced in the 107th Congress illustrate the divergence
of opinion in the Congress regarding the Canadian lumber issue. H.Con.Res 45
(Kolbe, introduced Feb. 28, 2001), and S.Con.Res. 4 (Nickles, introduced January 29,
2001), would express the sense of Congress of the desirability of open trade in
softwood lumber between the United States and Canada. Conversely, H.Con.Res. 54
(Chambliss, introduced March 7, 2001), and S.Con.Res. 8 (Snowe, introduced
February 7, 2001) seek to express the sense of Congress that the Bush Administration
should resolve problems of unfairly traded Canadian lumber and should make this issue
the top trade priority. H.R. 2181 (DeFazio, introduced June 14, 2001) seeks to impose
certain restrictions on Canadian lumber imports.
U.S. Steel Industry Issues
Steel imports, especially from East Asia, Russia, Brazil, and Eastern Europe have
been a cause of concern for domestic producers since July 1997. Congressional action
to aid the U.S. steel industry is currently being discussed. The steel industry and the
U.S. government have filed a large number of AD and CVD cases against steel
imports, and a wide range of AD and CVD orders are in effect. Additionally, the Bush
Administration has recently initiated a trade remedy action and sought to deal with
worldwide steel industry concerns.
Background. Steel imports into the U.S. market reached record levels in 1998,
dropped in 1999, but started rising again in 2000. Reasons for the rise in imports may
have included the need for the countries involved to earn hard currency to deal with
pressing financial issues such as the Asian financial crisis. Members of the
Congressional Steel Caucus have urged President Bush to initiate a “Section 201”
action against the imports as a means to give the domestic industry time to restructure
so that it can remain competitive.28
Recent Developments. On June 5, 2001, President Bush launched a multi-
pronged initiative to “respond to challenges facing the U.S. steel industry.” The
initiative directed the USTR to initiate negotiations with U.S. trading partners “seeking
the near-term elimination of inefficient excess capacity in the steel industry worldwide”
and to initiate trade rules that will regulate steel trade and eliminate subsidies to the
28See CRS Report RL31107, Steel Industry and Trade Issues, by Stephen Cooney.
CRS-18
steel industry. The President also directed the USTR to request an ITC investigation
of injury as provided by Section 201. On June 22, U.S. Trade Representative Robert
Zoellick forwarded the formal Administration request to the ITC, and the ITC began
its investigation. More than 500 steel mill products were covered in the request.
ITC Investigation. On July 26, 2001, the Senate Finance Committee passed a
resolution independently calling for an ITC investigation, in addition to the
presidential action. Because the final Committee resolution endorsed the
Administration’s action and product list and asked for the investigation to be
consolidated with the USTR-initiated request, the ITC subsequently consolidated the
Committee’s request into the previously initiated investigation (TA-201-73).
On October 23, the ITC published its determinations concerning the impact of
steel imports on the U.S. industry. For purposes of the investigation, steel imports
were divided into 33 product categories. On October 22, the commissioners reached
affirmative determinations on 12 of the categories, finding that the products are being
imported in such quantities that they are a“substantial cause of serious injury or threat
of serious injury to the U.S. industry.” In four of the product categories, the ITC’s vote
was evenly divided, and negative determinations were reached in 17 categories. The
imported products covered by the affirmative and evenly divided determinations
accounted for 27 million tons of steel valued at $10.7 billion in 2000.29 Hearings were
held on the remedy phase of the investigation on November 6, 8, and 9. The ITC
announced its views and remedy recommendations on December 7, 2001, and
presented its determination to President Bush on December 19, finding that “certain
steel products are being imported into the United States in such increased quantities as
to be a substantial cause of serious injury or threat of serious industry to the domestic
industry producing articles like or directly competitive with the imported articles.” The
ITC also determined that certain steel products from Canada and Mexico “account for
a substantial share of the total imports and contribute importantly to the serious injury
or threat thereof caused by imports.”30 The prevailing ITC recommendation to the
President included the imposition of tariffs of 20% for most products.31
Presidential Determination. On March 5, 2002, President Bush announced
trade remedies for all products on which the ITC had found substantial injury except
two specialty categories (tool steel and stainless steel flanges and fittings). All
remedies are for three years duration and will be imposed as of March 20, 2002. The
President will also impose a general import licensing and monitoring system.
29U.S. International Trade Commission, “ITC Details its Determinations Concerning Impact
of Imports of Steel on U.S. Industry,” October 23, 2001 news release 01-124.
30U.S. International Trade Commission, Steel, Investigation No. TA-201-73, Publication
3479, December 2001.
31U.S. International Trade Commission, “ITC Announces Recommendations and Views on
Remedy in its Global Safeguard Investigation Involving Imports of Steel,” December 7,
2001 news release 01-144.
CRS-19
!
For the high-volume flat, bar and tin mill products, the President imposed a
remedy tariff of 30% for the first year, reduced to 24% in the second year and
18% in the third year.
!
For semi-finished steel slabs the President established the same levels of tariff
remedy, with a quota of 5.4 million tons, on which no remedy tariffs will be
applied.
!
For other products, the President set the following levels of remedy tariff
protection: for rebar, welded tubular steel, stainless rod and stainless bar, the
remedy tariff is 15% for the first year, then declines by 3% per year; for carbon
and alloy steel flanges and fittings the remedy relief is 13% in the first year, then
declines by 3% per year; and for stainless steel wire the remedy relief is 8%,
declining by 1% per year for the subsequent two years.32
Imports from the North American Free Trade Area (Canada and Mexico) are
exempt from the Section 201 tariff remedies, as are any products from the other two
U.S. free-trade partners, Israel and Jordan. Imports from developing countries (as
determined by the country’s eligibility for tariff-free imports under the Generalized
System of Preferences) that are also WTO Member countries are also exempt, unless
these developing country products represent a significant share of U.S. imports. The
President reserves the right to impose safeguard measures on developing country
imports should they surge during the relief period. China, Russia, and the Ukraine are
generally excluded from this exemption, however. The President will also make
determinations on specific product exemptions within the next 120 days (limited to
cases already registered with the office of the USTR).
Legislation. H.R. 808 (Visclosky, introduced March 1, 2001), the Steel
Revitalization Act of 2001, and its companion bill S. 957 (Wellstone, introduced May
25, 2001) would require the President to establish import quotas on steel products for
five years, with monthly imports not to exceed the average of the three-year period
leading up to the mid-1997 import surge. Other provisions would establish a 1.5%
sales tax on U.S.-made steel products and imports to finance the health care benefits
of certain steelworker retirees ("legacy costs"); modify and extend the Emergency Steel
Loan Guarantee Act of 1999; and create a new environmental compliance grant
program for merged steel companies worth up to $100 million per company. S. 910
(Rockefeller, introduced May 17, 2001) is a separate bill proposing to enact the health
care and environmental cost provisions of H.R. 808. H.J. Res. 84 (Jefferson,
introduced March 7, 2002) is a resolution disapproving the action taken by the
President to establish remedies under section 203 of the Trade Act of 1974. On May
9, 2002, the House voted for a rule (H.Res. 414) that tabled H.J.Res. 84 (yeas 386, nays
30).
H.R. 3982 (Traficant, introduced March 14, 2002) seeks to apply the recently imposed
tariffs on steel imports towards assistance for displaced steel workers.
Among other legislation aimed at helping the steel industry, H.R. 1988 (English,
introduced May 24, 2001) and its companion bill S. 979 (Durbin, introduced May 26,
32 CRS Trade Electronic Briefing Book, “Trade
CRS-20
2001) would amend current U.S. trade remedy law. These bills are discussed in the
next section of this report.
Trade Remedies Reform
and Other Administrative Issues
Section 201 Reform
Pressure from domestic industries and workers for import relief is often directed
at members of Congress and the Administration. When injury allegedly occurs as a
result of imports of unfairly traded (i.e., subsidized or dumped goods) U.S. industries
can avail themselves of the antidumping and countervailing statutes. Another form of
trade remedy, sometimes known as Section 201 (“safeguard” or “escape clause”), is
a provision in U.S. law that gives relief to U.S. industries that are found to be seriously
injured or threatened by serious injury as a result of surges of fairly traded imports of
a particular article. Proposals to reform these statutes to make it easier for domestic
firms to get import relief were introduced in the 106th Congress, and may be considered
in the 107th Congress as well.
Background. Sections 201 to 204 (safeguard provisions) of the Trade Act of
1974, as amended (19 U.S.C. 2251-2254), authorize temporary relief from import
surges causing serious injury or a threat of serious injury to domestic industries. Trade
associations, unions, firms, workers, the House Ways and Means Committee, the
Senate Finance Committee, the USTR, or the President may request that the ITC
initiate an investigation leading to temporary relief from imports of the designated
commodity. A so-called Section 201 action refers to Section 201(d)(1) (U.S.C.
2251(d)(1)) of the Act, which authorizes the President to impose a duty, import
restriction, or other type of adjustment with respect to an article being imported into
the United States. A Presidential action may only follow a determination by the ITC
that the article is being imported into the United States in such increased quantities that
it constitutes a substantial cause of serious injury, or a threat of serious injury, to a
domestic industry. If the ITC makes an affirmative determination, it recommends to
the President action that will “facilitate positive adjustment by the industry to import
competition.” The President may decide to implement the Commission’s
recommendation, implement an alternative remedy, or take no action.33
Legislation. H.R. 518 (Regula, introduced February 7, 2001), the Trade
Fairness Act of 2001, proposes striking the term “substantial” from the statutory
causation provision of Section 201 and seeks to revise the factors the ITC must
consider when determining serious injury. The measure also proposes a more specific
list of factors to be considered when determining injury. The legislation resembles
two bills (H.R. 412, S. 261) introduced in the 106th Congress. The bill is currently in
committee.
33CRS Report RL30461, Trade Remedy Law Reform in the 107th Congress, by William H.
Cooper.
CRS-21
H.R. 1988 (English, introduced May 24, 2001) and its companion bill S. 979
(Durbin, introduced May 26, 2001), each titled the Trade Law Reform Act of 2001,
would make a variety of changes to Section 201 and other trade relief statutes. Each
would remove the term “substantial” from the Section 201 causation provision; revise
factors that the ITC is to take into account in determining serious injury, threat of
serious injury, and causation; add new captive production provisions; amend provisions
authorizing provisional relief; revise the factors that the President must take into
account in making his relief determination; and shorten the period of time for enacting
a joint resolution disapproving presidential action that varies from that recommended
by the ITC. These bills are currently in committee.
WTO Rulings, and Amendments to U.S. Laws
WTO dispute resolution and appellate body panels have recommended that the
United States repeal the Antidumping Act of 1916 and set aside a provision in U.S.
copyright law. Another provision, the so-called “Byrd Amendment,” enacted in the
106th Congress, is currently the subject of WTO consultations. In the first two cases,
panel rulings had given the United States a deadline of the latter part of July 2001 to
change U.S. law or risk trade retaliation. The third case is the subject of ongoing
consultations.
Background. The Uruguay Round Understanding on Rules and Procedures
Governing the Settlement of Disputes (January 1995), continues past GATT dispute
resolution procedures, but also contains certain measures designed to strengthen the
system. Disputes are administered by a Dispute Settlement Body (DSB), consisting of
representatives of all WTO members. The first stage of the dispute process is a period
of consultation between the governments involved. If resolution of the difficulties
cannot be achieved, the complainant(s) may ask the DSB to establish a panel. The
dispute panel hears the case and submits a report if its findings to the disputing parties
and later circulates it to WTO members. Following the release of the report, either
party may appeal the panel’s findings on legal grounds. If the complaint is upheld,
losing party must either change its practice or negotiate an agreeable resolution within
a reasonable period of time. If the respondent does not comply, the complainant may
request a suspension of WTO obligations toward the respondent, thus giving the
complainant permission to retaliate.34
Copyright Dispute. A WTO dispute settlement panel concluded recently that
Section 110(5)(B) of the U.S. Copyright Act of 1976, as amended by the Fairness in
Music Licensing Act of 1998, violates the WTO “TRIPS Agreement” (Agreement on
Trade-Related Aspects of Intellectual Property Rights).35 The provision permits
restaurants, bars, and many retail stores to play music and TV broadcasts without
34CRS Report 98-928 E, The World Trade Organization: Background and Issues, by Lenore
Sek. CRS Report RS20088, Dispute Settlement in the World Trade Organization: An
Overview, by Jeanne Grimmett
35World Trade Organization, United States —Section 110(5) Of the US Copyright Act
Dispute Panel Reports DS160/R, 15 June, 2000 and DS160/R, April 16, 1999. The texts
of WTO panel reports are available on the WTO home page [http://www.wto.org].
CRS-22
paying royalties to the collecting agencies. The United States agreed to implement the
finding, but asked for time to make the necessary legislative changes. A WTO
arbitrator had subsequently recommended that the United States comply with the ruling
by July 27, 2001. On July 24, the United States asked that the “reasonable period of
time” be modified to December 31, 2001. The U.S. also told the WTO that it is
preparing to offer compensation to the European Union until such time as U.S. law is
brought into compliance, and has been working actively with the EU to resolve the
dispute. To facilitate those negotiations, the United States and the European Union
jointly requested arbitration under Article 25 of the WTO Dispute Settlement
Understanding. Article 25 sets out a mechanism for resolving disputes through binding
arbitration within the WTO, subject to mutual agreement of the parties, with the
procedures set out by the parties themselves. On November 9, the arbitrators
determined that the “level of EC benefits nullified or impaired” as a result the law was
$1.4 million per year in lost royalties. The European Union called the arrangement a
temporary solution until the U.S. changes the law, but U.S. trade officials have favored
monetary compensation rather than legislative action. In late December, USTR
Zoellick agreed that the Bush Administration would seek authorization and funding
from Congress to contribute $3.3 million over 3 years to a European industry fund to
benefit EU musicians.36
Antidumping Act of 1916. On August 28, 2000, a WTO Appellate Body
upheld a dispute settlement panel finding in a complaint by the countries of the
European Union and Japan against the United States, alleging that Antidumping Act
of 1916 violated Article VI of the General Agreements on Tariffs and Trade of 1994
(GATT 1994) and the WTO Antidumping Agreement. The panel concluded that the
United States was in violation of these agreements, and recommended that the United
States “bring the 1916 Act into conformity with its obligations under the WTO
Agreement.”37
The 1916 Act allows the filing of criminal charges against an importer if there is
evidence that the dumping was done with intent to destroy or injure a U.S. industry.
Furthermore, under the statute, U.S. companies may sue foreign companies over
dumping of imports and may collect damages if dumping is found. During the WTO
proceedings, the United States argued that the complaint was moot because the law was
never used due to the difficulty of proving criminal or malicious intent.
A WTO arbitrator subsequently found that a deadline of July 26, 2001 provided
a “reasonable period of time” for the United States to comply with the dispute panel’s
findings. When this deadline was not reached, Japan and the EU agreed through
further negotiations to grant the United States an extended deadline of December 31,
2001, or until the end of the current session of the U.S. Congress, whichever is earlier,
36Inside U.S. Trade, “Zoellick, Lamy Agree to Settle Copyright Dispute, 1916 Act
Remains,” December 21, 2001.
37World Trade Organization, United States —Anti-Dumping Act of 1916 — Complaint by
the European Communities (Reports DS136/R, DS136/AB/R , DS162/AB/R, DS136/11, and
DS162/14); and United States —Anti-Dumping Act of 1916 — Complaint by Japan
(Reports DS162/R, DS162/R/Add.1 and DS162/AB/R).
CRS-23
to ensure compliance. They maintained their right to seek compensation or retaliation
against the United States if the 1916 Act were not repealed by the new deadline.
On December 20, 2001, Ways and Means Committee Chairman Thomas
introduced H.R. 3557, a bill that seeks to repeal the antidumping provisions of the
Act, and to end all cases brought under it in U. S. courts.
The “Byrd Amendment”. The Continued Dumping and Subsidy Offset Act
of 2000 (also known as the “Byrd Amendment”), a Title added to the Agriculture
Appropriations for FY2001 conference report (Title X of P.L. 106-387, H.Rept. 106-
948), became law on October 28, 2000. The measure amends existing antidumping
and countervailing duty law to provide that duties assessed pursuant to a countervailing
or antidumping duty order be distributed to “affected parties” instead of being
transferred into the general fund of the United States Treasury. The U.S. Customs
Service issued proposed regulations to implement the legislation on June 26, 2001.38
The new law is opposed by a dozen WTO member countries, including Japan, the
European Union, South Korea, Mexico, Canada, and India, who charge that the
measure violates the WTO antidumping and subsidy codes. Consultations on the
matter began on February 6, 2001. On July 12, the EU, Japan, and seven other
countries submitted a joint request for the establishment of a WTO dispute settlement
panel. On September 10, 2001, the DSB agreed to establish a panel to examine the
claims brought against the United States by Canada and Mexico, as well as those
previously brought by Australia, Brazil, Chile, the European Communities, India,
Indonesia, Japan, Korea, and Thailand. The panel was officially established on
October 25.
Foreign Sales Corporation. The Foreign Sales Corporation (FSC) provision
in the U.S. Internal Revenue Code provided a tax benefit to U.S. exporters designed
to stimulate U.S. exports. The countries of the European Union initiated a complaint
with the WTO against the FSC provisions in 1999, alleging that the provision
amounted to an illegal export subsidy contravening the WTO Subsidies Agreement.
A WTO panel issued a report in the EU’s favor on October of 1999, and in February
2000, a WTO Appellate Body report essentially upheld the panel’s conclusions. Under
WTO rules, the FSC provisions were to be brought into WTO compliance by October
2000. If the United States had not complied, the EU could have requested
compensation from the United States, or could have requested that the WTO authorize
retaliatory measures.39
On July 27, 2000, the House Ways and Means Committee overwhelmingly
approved H.R. 4986, the FSC Repeal and Extraterritorial Income Exclusion (ETI) Act
(Archer), a measure repealing the FSC tax benefit in return for an export tax benefit
that is the same general size of the FSC. The bill did not require a firm to sell its
exports through a separately chartered foreign corporation (an FSC), and provided a
blanket tax exemption on certain “extraterritorial” income—subsequently defined as
3866 FR 33920.
39See CRS Report RS20746, Export Tax Benefits and the WTO: Foreign Sales Corporations
(FSCs) and the Extraterritorial (ET) Replacement Provisions, by David Brumbaugh
CRS-24
a limited tax exemption for exports and a limited tax exemption for a limited range of
income from other foreign operations. According to an estimate by the Joint Committee
on Taxation, the bill would have reduced tax revenue by $1.5 billion over 5 years, in
addition to the revenue loss resulting from the FSC provisions.
The full House approved the bill on September 13, 2000 (315-109). The Senate
Finance Committee approved a slightly modified version of the bill on September 19.
The House included a version of the FSC replacement provision (reflecting a
compromise between the House and Senate Finance Committee versions) in a larger
tax-cut bill, the Taxpayer Relief Act (H.R. 2614). Because it appeared that H.R. 2614
faced a veto threat from President Clinton for reasons not related to the FSC
provisions, the Senate did not act on the bill, and instead passed the FSC-replacement
measures as an amended, stand-alone measure. The bill passed the Senate by
unanimous consent on November 1, and the amended bill was passed by the House on
November 14. H.R. 4986 was signed by the President on November 15 (P.L. 106-519).
The European Union has stated that it does not believe that the ETI provision is
in compliance with the conclusions of the dispute settlement panel, alleging that the
Act “appears to replicate the violations of the WTO Agreement found in the original
dispute rather than remove them..”40 Subsequently, the EU asked to be allowed
retaliatory tariffs of $4 billion—a request that was put on hold pending a WTO ruling
on compliance. The United States position was that it had completely followed the
WTO ruling.
Consultations were held between the United States and the EU on December 4,
2000. On December 7, the EU requested a panel, and on December 20, the Dispute
Settlement Body decided to refer the matter to the original panel . An interim report
was issued to both parties on June 22, 2001, and on July 2, the parties requested that
the panel review certain aspects of the interim report. In the final report, officially
released on August 20, 2001, the panel found that FSC replacement provision was not
in compliance with the WTO subsidies agreement or the dispute settlement panel
conclusion. On December 21, 2001, the WTO Appellate Body upheld all of the dispute
settlement panel rulings under appeal and recommended that the United States bring
its FSC replacement measure into conformity with its WTO obligations.
The United States Trade Representative expressed disappointment with the
outcome, but said that the United States would continue to seek to cooperate with the
European Union to resolve the dispute.41 In order to seek resolution, the United States
has several options, including some form of legislative action, negotiating new WTO
rules on tax treatment, or accepting some form of European Union retaliation such as
a fee imposed on U.S. companies.42
40World Trade Organization, United States— Tax Treatment of Foreign Sales Corporations:
Recourse to Article 21.5 of the DSU by the European Communities, August 20, 2001.
41United States Trade Representative, “WTO Upholds Adverse Ruling on Foreign Sales
Corporation (FSC) Tax.” USTR News Release, January 14, 2002.
42Inside U.S. Trade, “EU to Proceed with Retaliation Requests in Two Cases Involving
U.S.,” January 11, 2002.
CRS-25
NAFTA and the Mexican Trucking Dispute
On February 6, 2001, an international arbitration panel found that United States
refusal to approve any applications from Mexican carriers for new authority to provide
cross-border trucking services is a violation of the North American Free Trade
Agreement (NAFTA). The panel determined that the inadequacies of the Mexican
regulatory system provide an insufficient legal basis for the United States to maintain
its moratorium. This decision, and the Bush Administration’s support for opening up
the border to Mexican carriers as specified in the NAFTA, have accelerated the process
leading toward the granting of expanded operating authority to these carriers. Several
Members of Congress have become concerned that the safety of U.S. highways will be
compromised if the border is opened on the projected target date of January 2002.
Others, however, state that the safety risks have been over exaggerated.43
Background. According to the NAFTA, Mexican commercial carriers are to
be allowed full access to the United States to pick up and deliver cross-border
shipments, and similar access is to be provided for U.S. carriers operating in Mexico.
At present, almost all Mexican carriers are restricted from going any further into the
United States than the defined commercial zones, which are typically located within
three to twenty miles of the southern U.S. border. These zones are designated areas
where Mexican trucking companies are permitted to transfer their cargo to U.S. carriers
or unload their cargo, which is later picked up by U.S. carriers.
Citing safety concerns, the Clinton Administration placed a hold on certain
provisions of the NAFTA that would have allowed Mexican carriers to operate beyond
the commercial zones.44 On December 18, 1995, Mexico requested formal
consultations, as specified in the NAFTA, with the United States. After several
attempts by both parties to resolve the issue, Mexico requested the formation of an
arbitral panel, which was formed on February 2, 2000. The panel issued its final report
on February 6, 2001.
The Bush Administration intends to allow vehicles and drivers of approved
Mexican carriers to transport goods and passengers beyond commercial zones.
Concerns on the part of some about the safety of Mexican-domiciled carriers have
increased considerably as a result of this decision.
Recent Developments. On November 28, Senator Patty Murray announced
a House-Senate compromise with the White House on the Mexican cross-border
trucking issue. President Bush had threatened a veto of H.R. 2299, the Department of
43See CRS Report RL31028, North American Free Trade Agreement: Truck Safety
Considerations, by Paul Rothberg. CRS Issue Brief IB10070, Mexico-U.S. Relations: Issues
for the 107th Congress, by Larry K. Storrs.
44The Bus Regulatory Reform Act of 1982 (P.L. 97-261) established a two-year moratorium
on issuing new grants of operating authority to motor carriers domiciled in, or owned and
controlled by, persons of a contiguous foreign country. The moratorium was lifted with
respect to Canada in September, 1982, but continued with respect to Mexico. The
moratorium was subsequently extended until 1995, when the Interstate Commerce
Commission Termination Act of 1995 (P.L. 104-88) further extended the moratorium.
CRS-26
Transportation appropriations bill if certain safety provisions the White House
considered discriminatory were included in the conference report. The report,
including the compromise provisions, was approved by the House on November 30 and
the Senate on December 4.
The agreement (1) requires a comprehensive safety examination of each motor
carrier before conditional operating authority is granted, including verification of proof
of insurance, verification of a drug and alcohol testing program, verification of
compliance with hours-of-service rules, verification of safety inspection and
maintenance, and review of safety history; (2) requires a satisfactory rating in a full
safety compliance review before the operator is granted permanent operating authority;
(3) requires electronic verification of the license of each Mexican truck driver carrying
high-risk cargo and verification of at least half of all other Mexican truckers at the
border crossing; (4) requires that a distinctive Department of Transportation number
be given to each Mexican motor carrier operating beyond the commercial zone; (5)
mandates vigorous on-site inspections of trucking firms before their trucks are allowed
access to U.S. highways and a safety inspection of every Mexican truck every 90 days
(with the exception of those having been given permanent operating authority for three
consecutive years); (6) requires State inspectors to enforce Federal regulations or notify
Federal authorities of violations; (8) requires that the carrier provide proof of valid
insurance with an insurance company licensed in the United States; (9) allows access
to qualified trucks only at crossings where inspectors are on duty and where there is
adequate capacity to conduct safety enforcement activities; and (10) requires the
Federal Motor Carrier Safety Administration to publish interim final regulations and
related policies. Furthermore, no vehicles owned or leased by a Mexican motor carrier
may operate within the United States until the Department of Transportation’s
Inspector General has conducted an audit of the ability of the U.S. government to
enforce strict safety standards on all Mexican trucks crossing the border, and the
Department of Transportation certifies in writing, after reviewing the Inspector
General’s audit, that the opening of the border will not present an unacceptable safety
risk.45
Trade Adjustment Assistance for Firms, Industries, and
Workers
Authority for the Trade Adjustment Assistance (TAA) programs for firms and
workers was scheduled to expire on September 30, 2001, but was extended temporarily
through continuing resolutions through January 10, 2002. Senator Daschle has
indicated that TAA may be considered on the Senate floor within the next two weeks,
in tandem with trade promotion authority.
Background. TAA for firms was first authorized in the Trade Expansion Act
of 1962 (P.L. 87-794) along with a separate program for workers. Firm TAA currently
provides technical assistance to trade-affected companies through twelve regional trade
45United States House of Representatives. Making Appropriations for the Department of
Transportation and Related Agencies for the Fiscal Year Ending September 30, 2002, and
for Other Purposes, H.Rept. 107-308 (Conference Report accompanying H.R. 2299),
November 30, 2001.
CRS-27
adjustment assistance centers. The program, administered by the Economic
Development Administration of the Department of Commerce, receives direct funding
generally between $8 and $13 million. Additional appropriations are also provided
from the Defense Adjustment Assistance Program in some years.46
TAA for workers offers extended unemployment benefits and job training to
workers left unemployed when imported goods have contributed importantly to their
job loss. A similar TAA component for workers, known as NAFTA-TAAP, was
provided for in the North American Free Trade Agreement Implementation Act (P.L.
103-182).47 The NAFTA-TAAP (NAFTA Transitional Adjustment Assistance
Program) not only aids trade-affected workers, but also helps those affected workers
who lose jobs because their firms have relocated production to Canada or Mexico.
H.R. 3061, the Department of Labor, Health and Human Services, and Education
appropriations bill (P.L. 107-116, January 10, 2002) included total funding of $416
million for TAA and NAFTA-TAAP. Reauthorization of the programs is still pending.
H.R.2500 , the Commerce, Justice, State appropriations bill (P.L. 107-77, November
28, 2001) appropriated a total of $335 million for the Economic Development
Administration, of which $10 million is allocated to firm TAA.
Recent Developments. On October 16, 2001, the House Ways and Means
Committee reported H.R. 3008, which would extend TAA programs for firms and
workers until September 30, 2003. This bill was passed by the House on December 6,
2001. On November 9, 2001, the Senate Finance Committee reported H.R. 3090, The
Economic Recovery and Assistance for American Workers Act of 2001, as an
amendment in the nature of a substitute. The Senate version of the bill sought to
reauthorize the TAA programs for firms and workers for a one year, through calendar
year 2002. The Senate Finance Committee’s amendment was withdrawn during floor
debate on November 14.
On December 4, 2001, the Senate Finance Committee marked up and approved
an amended version of S. 1209 (Bingaman, introduced July 19, 2001), a bill seeking
to consolidate and improve the trade adjustment assistance and to provide
community-based economic development assistance for trade-affected communities.
S.Amdt. 3386 (Daschle), an amendment in the nature of a substitute to H.R. 3009,
includes TAA for firms and workers, as well as provisions for fishermen, farmers, and
communities affected by foreign trade. Certain controversial measures seeking to
extend health care coverage for affected workers are also included in the bill. S.Amdt
46CRS Report RS20210, Trade Adjustment Assistance for Firms: Economic, Program, and
Policy Issues, by J. F. Hornbeck. CRS Trade Electronic Briefing Book, “Trade Adjustment
Assistance for Firms,” by J. F. Hornbeck.
[http://www.congress.gov/brbk/html/ebtra57.html].
47CRS Report RS 21078, Trade Adjustment Assistance for Workers: Legislation in the 107th
Congress, by Paul J. Graney. CRS Trade Electronic Briefing Book “Trade Adjustment
A s s i s t a n c e f o r W o r ker s ” b y P a u l G r a n e y a n d C e l i n d a F r a n c o
[http://www.congress.gov/brbk/html/ebtra85.html]. CRS Report 94-801 EPW, Trade
Adjustment Assistance Programs for Dislocated Workers, by James R. Storey.
CRS-28
3386 also includes Presidential trade promotion authority, along with Trade
Adjustment Assistance for firms and workers, Customs reauthorization, amendments
to the Arms Export Control Act, and other miscellaneous provisions. The bill is
currently being considered in the Senate.
Conclusion
Members of Congress and the Administration have placed trade issues high on the
legislative agenda for the 107th Congress. At the beginning of the second session of the
107th Congress, progress has been made in the trade arena, including passing a free
trade agreement with Jordan and a bilateral trade agreement on Vietnam, and reaching
agreement on safety measures with respect to Mexican cross-border trucking.
However, significant issues still remain to be acted on. Some Members have expressed
the possibility that an omnibus trade bill may be the vehicle by which the remaining
legislation are addressed.
CRS-29
Appendix: Trade Legislation in the 107th Congress
Trade Promotion Authority
Bill/Sponsor
Description
Legislative Action
CRS Products
H.R. 3005 (Thomas)
To extend trade authorities procedures with
October 3, 2001: Introduced. Referred
CRS Report RL31178, Trade Promotion Authority
respect to reciprocal trade agreements.
to Committee on Ways and Means and
(Fast-Track): Labor Issues (including H.R. 3005 and
Committee on Rules.
H.R. 3019), by Mary Jane Bolle
October 9, 2001: Committee
consideration and mark-up session held.
CRS Report RL31196, Trade Promotion
Ordered to be reported (amended), yeas
(Fast-Track) Authority: H.R. 3005 Provisions and
26, nays 13. H.Rept. 107-249.
Related Issues, coordinated by Lenore Sek
December 6, 2001: Passed House, yeas
215, nays 214.
CRS Report RL31192, Trade Agreement
December 12, 2001: Senate Finance
Implementation: Expedited Procedures and
Comittee mark-up session held.
Congressional Control in Existing Law, by Richard
December 18, 2001: Legislation in the
S. Beth
nature of a substitute approved by
Committee.
CRS Report RS20039, Fast Track Implementation of
Feb. 28, 2002: Reported by Senator
Trade Agreements: Issues for the 107th Congress, by
Baucus (S. Rept. 107-139). Placed on
Lenore Sek
Senate legislative calendar under
general orders.
CRS Report RS21004, Fast Track Negotiating
Authority and Trade Promotion Authority:
SEE ATPA (H.R. 3009)
Chronology for Major Votes, by Carolyn C. Smith
CRS Issue Brief IB10084, Trade Promotion
H.R. 3019 (Rangel,
To provide fast-track trade negotiating authority
October 4, 2001: Introduced. Referred
Authority (Fast-Track Authority for Trade
Levin)
to the President.
to Committee on Ways and Means and
Agreements): Background and Developments in the
Committee on Rules.
107th Congress, by Lenore Sek
October 9, 2001: Committee
consideration. Disapproved yeas 12,
CRS Report 97-896, Why Certain Trade Agreements
nays 27. Included in H.Rept. 107-249
are Approved as Congressional-Executive
(additional views).
Agreements Rather Than as Treaties, by Jeanne J.
Grimmett
CRS Report 97-817, Agriculture and Fast Track or
Trade Promotion Authority, by Geoffrey S. Becker
and Charles Hanrahan
CRS-30
Bill/Sponsor
Description
Legislative Action
CRS Products
Trade Agreements and Trade Preferences
S. 643 (Baucus)
A bill to implement the agreement establishing a
Apr. 4, 2001: Introduced. Referred to
CRS Report RL30652, U.S.-Jordan Free Trade
United States-Jordan free trade area.
Committee on Finance.
Agreement, by Mary Jane Bolle.
Jul. 26, 2001: Committee consideration
and mark-up. Ordered to be reported
CRS Report RS20529, United States-Israel Free
with an amendment in the nature of a
Trade Area: Jordanian-Israeli Qualifying Industrial
substitute favorably.
Zones, by Joshua Ruebner.
Sept. 4, 2001: Finance Committee.
Reported by Senator Baucus with an
CRS Report RS20968, Jordan-U.S. Free Trade
amendment in the nature of a substitute.
Agreement: Labor Issues, by Mary Jane Bolle
S.Rept. 107-59.
CRS Issue Brief IB93085, Jordan: U.S. Relations
H.R. 2603 (Thomas)
To implement the agreement establishing a
Jul. 24, 2001: Introduced. Referred to
and Bilateral Issues, by Alfred B. Prados
United States-Jordan free trade area.
Committee on Ways and Means and
Committee on the Judiciary.
Jul. 26, 2001: Ways and Means
Committee consideration and mark-up
session held. Ordered to be reported in
the Nature of a Substitute (H.Rept. 107-
176, part 1).
July 31, 2001: Discharged from
Committee on Judiciary. Passed
House under suspension of rules, by
voice vote.
July 31, 2001: Received in the Senate
and referred to Committee on Finance.
Sept. 24, 2001: Discharged by Senate
Finance Committee by unanimous
consent. Passed Senate without
amendment by voice vote.
Sept. 28, 2001: Signed by President.
Became P.L. 107-43.
CRS-31
Bill/Sponsor
Description
Legislative Action
CRS Products
H.J.Res. 51 (Armey)
Approving the extension of nondiscriminatory
June 12, 2001: Introduced. Referred to
CRS Report RL30416, The Vietnam-U.S. Bilateral
treatment with respect to the products of the
Committee on Ways and Means.
Trade Agreement, by Mark E. Manyin
Socialist Republic of Vietnam.
Jul. 26, 2001: Committee consideration
and mark-up session held. Ordered to
CRS Report RL30896, Vietnam’s Labor Rights
be reported by voice vote.
Regime: An Assessment, by Mark Manyin
Sept. 5, 2001: Reported (H.Rept. 107-
198). Placed on Union Calendar.
CRS Report RS20717, Vietnam Trade Agreement:
Sept. 6, 2001: floor consideration in
Approval and Implementing Procedure, by Vladimir
House. Passed in House by voice vote.
N. Pregelj
Sept. 10, 2001: Received in Senate.
Oct. 3, 2001: Passed Senate without
CRS Report 98-545 E, The Jackson-Vanik
amendment Yeas 88, Nays 12.
Amendment: A Survey , by Vladimir N. Pregelj
Oct. 16, 2001: Signed by President.
Became P.L. 107-52.
CRS Issue Brief 98033, The Vietnam-U.S.
Normalization Process, by Mark Manyin
H.J.Res. 55
Disapproving the extension of the waiver
June 21, 2001: Introduced. Referred to
CRS Issue Brief IB93107, Normal-Trade-Relations
(Rohrabacher)
authority contained in section 402(c) of the
Committee on Ways and Means
(Most-Favored-Nation) Policy of the United States,
Trade Act of 1974 with respect to Vietnam.
July 12, 2001: Committee consideration
by Vladimir N. Pregelj
and mark-up session held. Ordered to
be reported adversely by voice vote.
July 23, 2001: Reported adversely
H.Rept. 107-154.
July 26, 2001: Failed on passage in
House (Roll no. 275, 91 yeas-324
nays).
CRS-32
Bill/Sponsor
Description
Legislative Action
CRS Products
H.J. Res. 50
Disapproving the extension of the waiver
Jun. 5, 2001: Introduced. Referred to
CRS Report RL30225, Most-Favored-Nation Status of
(Rohrabacher)
authority contained in section 402(c) of the Trade
Committee on Ways and Means.
the People’s Republic of China, by Vladimir N. Pregelj
Act of 1974 with respect to the People’s Republic
Jul. 12, 2001: Cte. consideration and
of China.
mark-up session held. Ordered to be
CRS Report 98-545 E, The Jackson-Vanik Amendment:
reported adversely by voice vote.
A Survey, by Vladimir N. Pregelj
Jul. 18, 2001: Reported adversely by
Cte. on Ways and Means. H. Rept.
CRS Report RS20139, China and the WTO, by Wayne
107-145.
M. Morrison
Jul. 19, 2001: Consideration initiated
pursuant to the order of the House.
CRS Report RS20691, Voting on NTR for China Again
On passage–failed by the yeas and nays
in 2001, and Past Congressional Decisions, by Kerry
169 - 259 (Roll no. 255).
B. Dumbaugh.
CRS Issue Brief 98018, China-U.S. Relations, by
Kerry B. Dumbaugh
CRS Issue Brief 98014, China’s Economic
Conditions: Issue Brief, by Wayne M. Morrison
CRS Issue Brief IB93107, Normal-Trade-Relations
(Most-Favored-Nation) Policy of the United States, by
Vladimir N. Pregelj
CRS Issue Brief 91121, China-U.S. Trade Issues, by
Wayne M. Morrison
H.R. 3553 (Thomas)
To provide for the extension of nondiscriminatory
Dec. 20, 2001: Introduced. Referred to
CRS Report 98-545 E, The Jackson-Vanik Amendment:
treatment (normal trade relations treatment) to the
the Committee on Ways and Means.
A Survey, by Vladimir N. Pregelj.
products of the Russian Federation.
CRS Report 96-463 E, Country Applicability of the
S. 1861 (Lugar)
To authorize the extension of nondiscriminatory
Dec. 20, 2001: Introduced. Referred to
U.S. Normal Trade Relations (Most-Favored-Nation)
treatment (normal trade relations treatment) to the
Senate Finance Committee.
Status, by Vladimir N. Pregelj.
products of Russia.
See also applicable CRS reports on individual
H.R.1318 (Pitts)
To authorize the extension of nondiscriminatory
Mar. 29, 2001: Introduced. Referred to
countries.
treatment (normal trade relations treatment) to the
Committee on Ways and Means.
products of Kazakhstan.
Apr. 16, 2001: Referred to Trade
Subcommittee.
H.R. 3440
To extend nondiscriminatory treatment to the
Dec. 10, 2001: Introduced. Referred to
(Rohrabacher)
products of Afghanistan.
Committee on Ways and Means.
H.R. 3939 (Kaptur)
To authorize the extension of nondiscriminatory
Mar. 12, 2002: Introduced. Referred to
treatment (normal trade relations treatment) to the
Committee on Ways and Means.
products of Ukraine.
H.R. 3979 (Pitts)
To provide for the extension of nondiscriminatory
Mar. 14, 2002: Introduced. Referred to
treatment (normal trade relations treatment) to the
Committee on Ways and Means.
products of the Republic of Uzbekistan
CRS-33
Bill/Sponsor
Description
Legislative Action
CRS Products
H.R. 796 (Rangel)
To normalize trade relations with Cuba, and for
February 28, 2001: Introduced.
other purposes.
Referred to House Committee on Ways
and Means.
Mar. 8, 2001: Referred to Trade
Subcommittee.
S. 401 (Baucus)
A bill to normalize trade relations with Cuba, and
February 27, 2001: Introduced.
for other purposes.
Referred to Senate Finance Committee.
S. 525 (Graham)
A bill to expand trade benefits to certain Andean
Mar. 13, 2001: Introduced. Referred to
CRS Report RL30790, The Andean Trade Preference
countries, and for other purposes.
Committee on Finance
Act: Background and Issues for Reauthorization, by
Apr. 6, 2001: Star print ordered on.
J.F. Hornbeck.
Dec. 14, 2001: Language of S. 525,
with modifications, reported by Senate
CRS Report RL30971, Latin America and the
Finance Committee as an amendment in
Caribbean: Legislative Issues in 2001, coordinated by
the nature of a substitute for H.R. 3009.
Larry K. Storrs.
S. Rept. 107-126.
CRS Report RL31016, Andean Regional Initiative
(ARI): FY2002 Assistance for Colombia and
H.R. 3009 (Crane)
To extend the Andean Trade Preference Act, to
Oct. 3, 2001: Introduced. Referred to
Neighbors, by Larry K. Storrs and Nina Maria
grant additional trade benefits under that Act, and
Committee on Ways and Means.
Serafino.
for other purposes.
Oct. 5, 2001: Committee consideration.
Ordered to be reported, as amended, by
CRS Issue Brief IB88093, Drug Control: International
voice vote.
Policy and Options, by Raphael Perl.
Nov. 16, 2001: Passed House by voice
vote. Received in Senate.
CRS Issue Brief 95017, Trade and the Americas, by
Nov. 29, 2001: Senate Finance
Ray Ahearn.
Committee consideration and mark-up.
Dec. 14, 2001: Reported by Senator
Baucus with an amendment in the
nature of a substitute. S. Rept. 107-126.
Apr. 25, 2002: Cloture motion
introduced on motion to proceed.
Apr. 29, 2002: Cloture invoked by
Senate (yeas 69, nays 21)
Apr. 30, 2002: Motion to proceed
considered.
May 1, 2002: Motion to proceed agreed
to (yeas 77, nays 21). Committee
substitute amendment withdrawn.
S.Amdt,. 3386 (Daschle) introduced.
Considered in Senate.
CRS-34
Bill/Sponsor
Description
Legislative Action
CRS Products
S. 1671 (Baucus)
A bill to amend the Trade Act of 1974 to
Nov. 9, 2001: Introduced. Referred to
provide for duty-free treatment under the
Committee on Finance.
CRS Report RS20063, U.S.-Sub-Saharan Africa Trade
Generalized System of Preferences (GSP) for
and Investment: Programs and Policy Direction, by
certain hand-knotted or hand-woven carpets and
Lenore Sek.
leather gloves.
CRS Report 96-389 E, Generalized System of
Preferences, by William H. Cooper.
To amend the Trade Act of 1974 to extend the
Oct. 3,2001: Introduced. Referred to
H.R. 3010 (Crane)
Generalized System of Preferences until
Committee on Ways and Means.
December 31, 2002.
Oct 5, 2001: Committee consideration
and markup session held.
Oct. 15, 2001: Reported (H.Rpt. 107-
245)
Oct. 16, 2001: placed on Union
Calendar (Calendar No. 150).
Legislation Affecting Exports
S. 149 (Enzi)
A bill to provide authority to control exports,
Jan. 23,2001: Introduced. Referred to
CRS Report RL31175, High Performance
and for other purposes.
Cte. on Banking, Finance, and Urban
Computers and Export Control Policy, by Glenn
Affairs.
McLoughlin and Ian F. Fergusson.
Feb. 7 and 14, 2001: Hearings held.
Apr. 2, 2001: Reported out of Cte.
CRS Report RL30689, The Export Administration
Report 107-10.
Act: Controversy and Prospects, by Ian F.
Apr. 26, 2001: Debated in Senate.
Fergusson.
Sept. 4, 2001: Measure laid before the
Senate by Unanimous Consent.
CRS Report RL30430, Export Controls: Analysis of
Sept. 5, 2001: Considered by Senate.
Economic Costs, by Craig K. Elwell
Sept. 6, 2001: Passed by Senate with an
amendment (Yeas 85, Nays, 14; Record
CRS Report RL30273, Encryption Export Controls,
Vote No. 275).
by Jeanne J. Grimmett
Sept. 10, 2001: Message on Senate action
received in House. Received by House.
CRS Report RL30169, The Export Administration
Held at the desk.
Act of 1979 Reauthorization, coordinated by Ian F.
Fergusson
CRS Report 98-116 F, Nuclear, Biological,
Chemical, and Missile Proliferation Sanctions:
Selected Current Law, by Dianne E. Rennack.
CRS-35
Bill/Sponsor
Description
Legislative Action
CRS Products
H.R. 2581 (Gilman)
To provide authority to control exports, and
July 20, 2001: Introduced. Referred to
CRS Report RL31175, High Performance
other purposes
House International Relations
Computers and Export Control Policy, by Glenn
Committee and House Rules
McLoughlin and Ian F. Fergusson.
Committee
Aug. 1, 2001: International Relations
CRS Report RL30689, The Export Administration
Committee consideration and mark-up
Act: Controversy and Prospects, by Ian F.
session held. Ordered to be reported
Fergusson.
(yeas 26, nays 7).
Nov. 16, 2001: Reported by
CRS Report RL30430, Export Controls: Analysis of
International Relations Committee (H.
Economic Costs, by Craig K. Elwell
Rept. 107-297, part I)
March 8, 2002: Reported, amended, by
CRS Report RL30273, Encryption Export Controls,
Armed Services Committee (H. Rept.
by Jeanne J. Grimmett
107-297, part II). Discharged from
Agriculture, Energy and Commerce,
CRS Report RL30169, The Export Administration
Judiciary, Ways and Means, Rules, and
Act of 1979 Reauthorization, coordinated by Ian F.
Intelligence Committees. Placed on the
Fergusson
Union Calendar (No. 212).
CRS Report 98-116 F, Nuclear, Biological,
Chemical, and Missile Proliferation Sanctions:
Selected Current Law, by Dianne E. Rennack.
CRS-36
Bill/Sponsor
Description
Legislative Action
CRS Products
H.R. 918 (Hall)
To prohibit the importation of diamonds unless
March 7, 2001: Introduced. Referred to
CRS Report 98-568 E, Export-Import Bank:
the countries exporting the diamonds into the
Committee on Ways and Means and
Background and Legislative Issues, by James K.
United States have in place a system of controls
Committee on Financial Services.
Jackson
on rough diamonds, and for other purposes.
April 10, 2001: Referred to
Subcommittee on International
CRS Trade Electronic Briefing Book Page, The
Monetary Policy and Trade.
Export-Import Bank, by James K. Jackson
[http://www.congress.gov/brbk/html/ebtra64.html]
H.R. 1690 (Waters)
To amend the Export-Import Bank Act of 1945
May 5, 2001: Introduced. Referred to
to prohibit the Export-Import Bank of the
Committee on Financial Services.
United States from assisting the export of any
May 14, 2001: Referred to
good or service to or by any company that is
Subcommittee on International
challenging an intellectual property law or
Monetary Policy and Trade.
government policy of a developing country,
which regulates and promotes access to an
HIV/AIDS pharmaceutical or medical
technology.
H.R. 2871 (Bereuter)
To reauthorize the Export-Import Bank of the
Sept.10, 2001: Introduced. Referred to
United States, and for other purposes.
House Committee on Financial
Services.
Sept. 14: Referred to Subcte. on
International Monetary Policy and
Trade.
Sept. 21: Subcte. consideration and
markup held. Forwarded, amended, by
subcte. to full committee by voice vote.
Nov. 15: Reported, amended, by the
Committee on Financial Services
(H.Rept. 107-292).
Nov. 15: Placed on Union Calendar
(No.17
S. 1372 (Sarbanes)
A bill to reauthorize the Export-Import Bank of
Jul. 28, 2001: Original measure
the United States.
considered by Committee on Banking,
Housing, and Urban Affairs.
Aug. 3, 2001: Reported in Senate (No.
107-52). Placed on Senate Legislative
Calendar under General Orders.
Mar. 14, 2002: Passed Senate with an
amendment by Unanimous Consent.
Mar. 18, 2002: Message on Senate
action received in House. Held at desk.
CRS-37
Bill/Sponsor
Description
Legislative Action
CRS Products
Legislation Affecting Specific Industries
H. Con. Res. 46 (Kolbe)
Expressing the sense of the Congress regarding
Feb. 28, 2001: Introduced. Referred to
CRS Issue Brief IB10081, Lumber Imports from
housing affordability and ensuring a competitive
Cte. on Ways and Means.
Canada: Issues and Events, by Ross W. Gorte and
North American market for softwood lumber.
Jeanne Grimmett
S. Con. Res. 4 (Nickles)
A concurrent resolution expressing the sense of
Jan. 29, 2001: Introduced. Referred to
CRS Report RL30826, Softwood Lumber Imports
Congress regarding housing affordability and
Cte. on Finance.
from Canada: History and Analysis of the Debate,
ensuring a competitive North American market
by Ross W. Gorte.
for softwood lumber.
H. Con. Res. 54
Expressing the sense of Congress regarding the
Mar. 7, 2001: Introduced. Referred to
(Chambliss)
importation of unfairly traded Canadian lumber.
Cte. on Ways and Means.
S. Con. Res. 8 (Snowe)
A concurrent resolution expressing the sense of
Feb. 7, 2001: Introduced. Referred to
CRS Issue Brief IB10081, Lumber Imports from
Congress regarding subsidized Canadian lumber
Cte. on Finance.
Canada: Issues and Events, by Ross W. Gorte and
exports.
Jeanne Grimmett
H.R. 2181 (DeFazio)
To impose certain restrictions on imports of
June 14, 2001: Introduced. Referred to
CRS Report RL30826, Softwood Lumber Imports
softwood lumber products of Canada.
Committee on Ways and Means.
from Canada: History and Analysis
June 20, 2001: Referred to Trade
Subcommittee.
H.R. 808 (Visclosky)
To provide certain safeguards with respect to
Mar. 1, 2001: Introduced. Referred to
CRS Report RL31107, Steel Industry and Trade
the domestic steel industry.
Cte. on Ways and Means and Cte. on
Issues, by Stephen Cooney.
Financial Services and Cte. on
Education and the Workforce.
CRS Electronic Briefing Book: Trade.
“Steel: Trade and Industry Issues” by Stephen
Cooney
H.J. Res 84 (Jefferson)
Disapproving the action taken by the President
Mar. 7, 2002: Introduced. Referred to
[http://www.congress.gov/brbk/html/ebtra126.html]
under section 203 of the Trade Act of 1974
Cte. on Ways and Means.
transmitted to the Congress on March 5, 2002.
May 7, 2002: Reported adversely by
Cte. on Ways and Means. Rules Cte.
resolution H. Res. 414 introduced.
May 8, 2002: H. R.es. 414 passed
House. Pursuant to the resolution, H. J.
Res. 84 is laid on the table.
H.R. 3982 (Traficant)
To apply recently imposed tariffs on steel
Mar. 14, 2002: Introduced. Referred to
imports towards assistance for displaced steel
Cte. on Ways and Means, Cte. on
workers and retirees.
Education and the Workforce, and Cte.
on Energy and Commerce.
S. 910 (Rockefeller)
To provide certain safeguards with respect to
May 17, 2001. Introduced. Referred to
the domestic steel industry.
Senate Cte. on Finance.
CRS-38
Bill/Sponsor
Description
Legislative Action
CRS Products
S. 957 (Wellstone)
A bill to provide certain safeguards with respect
May 24, 2001: Introduced. Referred to
to the domestic steel industry.
Senate Cte. on Finance.
Trade Remedies and Other Administrative Reform
H.R. 518 (Regula)
To amend the Trade Act of 1974, and for other
Feb. 7, 2001: Introduced. Referred to
CRS Report RL30461, Trade Remedy Law Reform in
purposes.
Cte. on Ways and Means.
the 107th Congress, by William H. Cooper.
CRS Trade Electronic Briefing Book, Antidumping
and Countervailing Duties, by Jeanne J. Grimmett
[http://www.congress.gov/brbk/html/ebtra67.html]
H.R. 3557 (Thomas)
To repeal the antidumping provisions contained
Dec. 20, 2001: Introduced. Referred to
in the Act of September 8, 1916.
Cte. on the Judiciary.
CRS Trade Electronic Briefing Book, Section 201 of
the Trade Act of 1974, by Jeanne J. Grimmett
[http://www.congress.gov/brbk/html/ebtra68.html]
H.R. 2299 (Rogers)
Making appropriations for the Department of
Jun 22, 2001: Reported by House
CRS Report RL31028, North American Free Trade
Transportation and related agencies for the fiscal
Committee on Appropriations as an
Agreement: Truck Safety Considerations, by Paul
year ending September 30, 2002, and for other
original measure (H. Rept 107-108).
Rothberg.
purposes. (Section 350 of the conference report
June 26, 2001: Passed by House, yeas
contains the compromise language on Mexican
426, nays 1(Roll No. 194).
cross-border trucking)
Aug. 1, 2001: Passed Senate with an
amendment by Unanimous Consent.
Oct.25, 2001: Senate insists on its
amendment and appoints conferees.
Oct. 31, 2001: House appoints and
moves to instruct conferees (voice
vote).
Nov. 30, 2001: Conference Report
(H.Rept. 107-308) filed.
Nov. 30, 2001: Conference Report
agreed to in House, yeas 371, nays 11
(Roll No. 465).
Dec. 4, 2001: Conference Report
agreed to in Senate, yeas 97, nays 2
(Record Vote No. 346).
Dec. 18, 2001: Signed by President.
Became P.L. 107-87.
CRS-39
Bill/Sponsor
Description
Legislative Action
CRS Products
S. 1209 (Bingaman)
A bill to amend the Trade Act of 1974 to
July 19, 2001: Introduced. Referred to
consolidate and improve the trade adjustment
Senate Committee on Finance.
assistance programs, to provide
Dec. 4, 2001: Considered by
community-based economic development
Committee on Finance. Ordered to be
assistance for trade-affected communities, and
reported with an amendment in the
for other purposes.
nature of a substitute favorably.
Feb. 4. 2002: Reported by Senator
Baucus. S. Rept. 107-134. Placed on
Senate Legislative Calendar under
General Orders.
H.R. 3008 (Johnson)
To reauthorize the trade adjustment assistance
Oct. 3, 2001: Introduced. Referred to
program under the Trade Act of 1974, and for
Committee on Ways and Means.
other purposes.
Oct. 5, 2001: Committee Consideration
and Mark-up Session Held. Ordered to
be reported by voice vote.
Oct. 16, 2001: Reported by Cte. H.Rpt.
107-244.
Dec. 6, 2001: Considered under
suspension of the rules. On motion to
suspend the rules and pass the bill, yeas
420, nays 3, present 1 (Roll No. 477).
Received in Senate. Referred to
Committee on Finance.
SEE ATPA. (H.R. 3009)