10/03/01

H.R. 3005, THE BIPARTISAN TRADE PROMOTION AUTHORITY ACT OF 2001

Comparison with Expired Law (Trade Act of 1974 (TA); Omnibus Trade & Competitiveness Act of 1988 (OTCA))

ITEM EXPIRED LAW (Tr Act '74;
Omn Tr & Compet Act '88)		 H.R. 3005
1. Negotiating objectives OTCA 1101:

• Overall objectives included: obtaining more open, equitable, and reciprocal market access, the reduction or elimination of barriers and other trade-distorting policies and practices, and a more effective system of international trading disciplines and procedures

• Principal trade negotiating objectives included: dispute settlement, transparency, developing countries, current account surpluses, trade and monetary coordination, agriculture, unfair trade practices, services, intellectual property, foreign direct investment, safeguards, specific barriers, worker rights with respect to the GATT, and access to high technology

 • Overall objectives (Sec. 2(a)): obtain more open, equitable, and reciprocal market access; reduce or eliminate barriers and distortions directly related to trade; strengthen international trading disciplines and procedures; foster economic growth, raise living standards, promote full U.S. employment, enhance global economy; ensure trade and environment are mutually supportive and seek to protect and preserve the environment and enhance the international means of doing so, while optimizing the use of the world's resources; and promote respect for worker rights and the rights of children consistent with ILO core labor standards.

• Principal trade objectives (Sec. 2(b)): reduce or eliminate tariff and nontariff barriers directly related to trade; reduce services trade barriers; reduce foreign direct investment trade barriers, provide meaningful dispute resolution, and eliminate frivolous investor-state claims; promote trade-related intellectual property; obtain broader transparency; improve the WTO; achieve increased transparency in regulatory practices; improve protections for electronic commerce; achieve fairer and more open trade in agriculture; ensure that government does not fail to effectively enforce its labor and environment laws, through a sustained or recurring course of action or inaction, recognizing a government retains certain discretion; strengthen the capacity to promote respect for core labor standards and to protect the environment; reduce or eliminate government practices or policies that unduly threaten sustainable development; seek market access for U.S. environmental technologies, goods, and services; seek effective and timely resolution of disputes; seek provision of compensation; seek appropriate penalties to the situation with the aim of not adversely affecting interests not party to the dispute while maintaining the effectiveness of the enforcement mechanism; seek enforcement that treats all U.S. principal negotiating objectives equally with respect to ability to use dispute settlement, availability of equivalent procedures, and availability of equivalent remedies
2.  Promotion of certain priorities No provision Sets forth other priorities for the President to address (sec. 2(c)):
  • seek greater cooperation between WTO and the ILO;
  • seek to establish consultative mechanisms among parties to trade agreements to strengthen capacity of U.S. trading partners to promote respect for core labor standards;
  • seek to establish consultative mechanisms among parties to trade agreements that strengthen capacity of U.S. trading partners to develop and implement standards for environment and human health based on sound science;
  • conduct environmental reviews of future trade and investment agreements, consistent with Executive Order 13141;
  • review the impact of future trade agreements on U.S. employment, modeled after E.O. 13141;
  • take into account protection of legitimate health or safety, essential security, and consumer interests;
  • have Sec'y of Labor provide technical assistance on labor;
  • report on child labor laws of parties to negotiations;
  • preserve U.S. ability to enforce rigorously its trade laws, including antidumping and countervailing duty, and avoid agreements which lessen their effectiveness
  • continue to promote consideration of Multilateral Environmental Agreements and consult with parties to such agreements regarding the consistency of any MEA that includes trade measures with existing environmental exceptions under GATT Article XX; and
  • USTR to report whether remedy taken by U.S. under trade agreement was effective in changing the behavior of the targeted party or had adverse impact on parties or interests not party to the dispute
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Sec. 2(e): In determining whether to enter into negotiations with a particular country, the President is to take into account the extent to which that country has implemented its WTO obligations
3. Provisions eligible for TPA Fast track applies to implementing bills submitted with respect to trade agreements entered into under the statute (OTCA 1103(b)(1)(A))

Implementing bill further defined as bill which contains provisions approving trade agreement and statement of administrative action and provisions which are necessary or appropriate to implement the trade agreement (TA 151(b)(1)(C))

 Sec. 3(b)(3): TPA applies to implementing bills consisting of provisions:

• Approving trade agreement and statement of administrative action;

• Necessary or appropriate to implement the trade agreement
4. Proclamation authority President provided with authority to negotiate certain tariff reductions without need for implementation (OTCA 1102(a)) Sec. 3(a): President provided with authority to negotiate certain tariff reductions without need for implementation, including unlimited authority to President to negotiate reciprocal duty elimination on a sectoral basis
5. Consultations and notification President required, before entering into any trade agreement, to consult with Congress as to the nature of the agreement, how and to what extent the agreement will achieve applicable purposes, policies, and objectives, and all matters relating to agreement implementation (TA 102 and OTCA 1102(d) and 1103)

President required to notify Congress of intention to enter into agreement at least 90 days before date on which he enters into the agreement (OTCA 1003(a))

Fast track does not apply if both Houses separately agree to a procedural disapproval resolution within any 60-day period stating that Administration failed to consult with Congress (OTCA 1103(C)(1))

 Sec. 4(a): President required, before initiating negotiations, to provide written notice and consult with relevant Committees and Congressional Oversight Group at least 60 calendar days prior to entering into negotiations

Sec. 2(d)(2): USTR to consult with statutory trade advisors, relevant Committees, Congressional Oversight Group, and Agriculture Committees (on agriculture issues) before initialing agreement

Sec. 4(b): President required, before entering into any trade agreement, to consult with relevant Committees and Congressional Oversight Group concerning the nature of the agreement, how and to what extent the agreement will achieve the applicable purposes, policies, and objectives of the Act, and all matters relating to implementation under sec. 5

Sec. 5: President required, at least 90 days before entering into agreement, to notify Congress of intent to enter into agreement

Sec. 4(a)(5): President required to consult on agriculture tariff disparities

Sec. 7: Establishment of Congressional Oversight Group, comprised of Chairman and Ranking Member of Ways & Means/Finance and three additional members of such Committee (not more than 2 from same party), and Chairman and Ranking Member of Committees with jurisdiction over laws affected by trade agreements. Members are to be accredited as official advisors to U.S. delegation. USTR is to develop guidelines to facilitate useful and timely exchange of information, including regular briefings, access to pertinent documents, and closest possible coordination at all critical periods during negotiations, including at negotiation sites

Sec. 5(b): Fast track does not apply if both Houses agree to procedural disapproval resolution stating that the Administration has failed to consult with Congress
6. Trade negotiations that have already begun Not applicable Sec. 6: Exempts Chile and Singapore agreements, FTAA, and WTO negotiations already begun from requirement to consult 90 days before negotiations begin but requires consultation about objectives as soon as practicable after enactment of TPA
7. Time period Expired with respect to new agreements Sec. 3(a)(1) and (c): Applies to agreements entered into by June 1, 2005; extension to June 1, 2007 unless disapproval resolution passed
8. Timetable for consideration After formal introduction, House committees of jurisdiction have 45 days to report the bill; House required to vote on bill within 15 legislative days after measure was reported or discharged from committees; 15 additional days provided for Senate committee consideration; Senate floor action required within 15 additional days; maximum period for Congress to consider implementing bill from date of introduction is 90 days (TA 151(e))

Advisory committee reports to be provided not later than 30 days after the date on which the President notified Congress of his intent to enter into an agreement (OTCA 1102(e)(4))

 Sec. 3(b)(3): After formal introduction, House committees of jurisdiction have 45 days to report the bill; House required to vote on bill within 15 legislative days after measure was reported or discharged from committees; 15 additional days provided for Senate committee consideration; Senate floor action required within 15 additional days; maximum period for Congress to consider implementing bill from date of introduction is 90 days

Advisory committee reports are to be provided not later than 30 days after the date on which the President notifies Congress of his intent to enter into an agreement
9. Amendments Before formal introduction, may amend in Committee process through "mock mark-ups"; once formally introduced, no amendments permitted in Committee or on floor; straight "up or down" vote (TA 151(d)) Sec. 3(b)(3): Before formal introduction, may amend in Committee process through "mock mark-ups"; once formally introduced, no amendments permitted in Committee or on floor; straight "up or down" vote
10. Submission of legislation, list of laws affected, and implementation and enforcement plan After entering into the agreement, President required to submit formally draft agreement, implementing legislation, and statement of administrative action (OTCA 1103(a)); no time limit for formal submission

On same day as President formally submits legislation, bill to be introduced (by request) by Majority Leaders (TA 151(c))

 Sec. 5(a)(1)(C): After entering into the agreement, President required to submit formally draft agreement, implementing legislation, and statement of administrative action; no time limit for formal submission;on same day as President formally submits legislation, bill to be introduced (by request) by Majority Leaders

Sec. 5(a)(1)(B): Within 60 days from signing of an agreement, the Administration must submit to Congress a list of existing laws that are required to be amended by the agreement

Sec. 8: When President submits final text of agreement, he is also to submit a plan for implementing and enforcing it; Secretary of Labor to consult with parties seeking agreements with the United States and provide technical assistance to those countries if needed