United States - Jordan Free Trade Area Implementation Act of 2001

Section 1. Short Title.

The Act may be cited as the "United States-Jordan Free Trade Area Implementation Act of 2001."

SEC. 2-3. PURPOSES AND DEFINITIONS.

Section 2 specifies that the purposes of this bill are: (1) to implement the agreement between the United States and Jordan establishing a free trade area (FTA); (2) to strengthen and develop the economic relations between the United States and Jordan for their mutual benefit; and (3) to establish free trade between the two nations through the removal of trade barriers.

Section 3 contains definitions of terms used in the bill.

TITLE 1 - TARIFF MODIFICATIONS; RULES OF ORIGIN

SEC. 101 - TARIFF MODIFICATIONS.

Section 101 authorizes the President to proclaim the duty reductions set out in the U.S. tariff schedule annexed to the Agreement. The text of section 101 is based on section 4 of the United States-Israel Free Trade Area Implementation Act (19 U.S.C. 2112 note).

Section 101 empowers the President to: (1) modify or continue any duty; (2) keep in place duty-free or excise treatment; or (3) impose any additional duties, that the President determines to be necessary to carry out the duty reductions called for under the Agreement. Section 101 also authorizes the President to maintain the general level of reciprocal and mutually advantageous concessions with respect to Jordan provided for by the Agreement.

SEC. 102. RULES OF ORIGIN.

Section 102 codifies the rules of origin set out in Annex 2.2 of the Agreement. The language of section 102 is drawn largely verbatim from section 402 of the Trade and Tariff Act of 1984 (19 U.S.C. 2112 note), which establishes origin rules for goods imported from Israel under the tariff preference provisions of the U.S.-Israel FTA. However, in addition, section 102 prescribes specific origin rules for textile and apparel products, consistent with those set out in paragraph 9 of Annex 2.2 of the Agreement, and in section 334 of P.L. 103-465, the Uruguay Round Agreements Act (the so-called "Breaux-Cardin" rule.) For apparel products, this rule means that the place of assembly will generally determine origin of the product. A textile product will be considered to originate where the fabric is knit or woven.

TITLE II - RELIEF FROM IMPORTS

SEC. 201 - 209.

The bilateral safeguard provisions established in Article 10 of the Agreement are closely modeled on those included in the NAFTA and embodied in U.S. law through sections 301-307 of the North American Free Trade Implementation Act ("NAFTA Act") (19 U.S.C. 3351-3357). Sections 201-207 of the proposed FTA implementation bill are based on the NAFTA legislation, with minor variations to reflect the specific provisions of Article 10. The standards and procedures established in the proposed legislation parallel those of both the NAFTA Act and sections 201-204 of the Trade Act of 1974 (19 U.S.C. 2251-2254), which establish procedures for global safeguards investigations and import relief under U.S. law.

In brief, sections 201-207 authorize the President, after an investigation and affirmative determination by the U.S. International Trade Commission ("Commission"), to impose specified import relief when, as a result of the reduction or elimination of a duty under the Agreement, a Jordanian-origin product is being imported into the United States in such increased quantities and under such conditions as to be a substantial cause of serious injury or threat of serious injury to the domestic industry.

When the President imposes global safeguards relief under chapter 1 of title II of the Trade Act of 1974, section 208 authorizes the President to exclude imports from Jordan if he determines that those imports are not a substantial cause of the serious injury, or threat of serious injury, that the Commission has found.

TITLE III - TEMPORARY ENTRY

SEC. 301. NONIMMIGRANT TRADERS AND INVESTORS (in Judiciary Committee jurisdiction)

Section 301 makes Jordanian nationals eligible for temporary entry into the United States as traders and investors. This provision implements the Agreement's visa provisions, set out in Article 8 of the FTA. The trade and investor category provides for admission under requirements identical to those governing admission under the Immigration and Nationality Act (8 U.S.C. 1101 et seq.), which permits entry to carry on substantial trade in goods or services and to develop and direct investment operations.

TITLE IV - GENERAL PROVISIONS

SEC. 401. RELATIONSHIP OF THE AGREEMENT TO UNITED STATES AND STATE LAW.

Section 401 establishes the relationship between the FTA and U.S. law, as well as state law. With respect to federal law, section 401(a) makes clear that no provision of the Agreement will be given effect under domestic law if it is inconsistent with federal law. Section 401(b) clarifies that no state law may be declared invalid on the ground that it conflicts with the Agreement except in an action brought by the United States for such purpose. Finally, section 401(c) makes clear that no private remedy is created by the entry into force of the Agreement.

SEC. 402. AUTHORIZATION OF APPROPRIATIONS.

Section 402 authorizes appropriations to the Department of Commerce of the lesser of (1) $100,000 or (2) such sums as may be necessary for the payment of the U.S. share of expenses incurred in dispute settlement proceedings provided for in Article 17 of the Agreement. Any Administration funding requests for these functions will be made in accordance with established budget formulation procedures and may be less than $100,000.

SEC. 403. IMPLEMENTATION REGULATIONS.

Section 403 provides authority for the President to issue proclamations and for federal agencies to promulgate regulations necessary to implement the Agreement. No proclamation or regulation may take effect before the Agreement enters into force.