FOR IMMEDIATE RELEASE, Contact: (202) 225-3625
October 10, 1997
No. FC 17-A
Congressman Bill Archer (R-TX), Chairman of the Committee on Ways and Means, today announced that on Wednesday, October 8, 1997, the Committee ordered favorably reported, H.R. 2622, the "Miscellaneous Trade and Technical Corrections Act of 1997," without amendment, by voice vote, and H.R. 2621, the "Reciprocal Trade Agreements Authorities Act of 1997," as amended, by a recorded vote of 24-14.
DESCRIPTION OF H.R. 2622 AS APPROVED:
H.R. 2622 includes a group of miscellaneous amendments which would streamline the Customs laws, and a group of provisions which would temporarily suspend duty, through 1999, for imported products for which there is no U.S. domestic manufacturer. The majority of the products covered by the temporary duty suspension provisions are chemicals, including certain chemicals used to develop drugs to fight AIDS and cancer. Other provisions would correct a tariff inversion relating to footwear, would suspend the duty on certain textile filaments, and would bring U.S. laws into conformity with an international agreement on the duty-free importation of large scientific instruments.
The Subcommittee on Trade issued a request for written public comments (No. TR-10) on miscellaneous and technical trade provisions on June 30, 1997.
H.R. 2621, THE "RECIPROCAL TRADE AGREEMENT AUTHORITIES ACT OF 1997"
Title I--the "Reciprocal Trade Agreement Authorities Act of 1997"
BACKGROUND:
Certain trade agreements cannot enter into force as a matter of U.S. law unless implementing legislation approving the agreement and any changes to U.S. law is enacted into law. In order to implement a number of trade agreements, special procedures have been used which required the President, before entering into any trade agreement, to consult with Congress and to provide Congress advance notice of his intent to enter into an agreement. After entering into the agreement, the President was required to submit the draft agreement, implementing legislation, and a statement of administrative action. After that point, the procedures for committee, House, and Senate consideration were strictly circumscribed. Amendments to the legislation were not permitted once the bill was introduced; the committee and floor actions consisted of "up or down" votes on the bill as introduced. These special provisions have expired with respect to new agreements.
The purpose of this special approval process was to preserve the constitutional role and fulfill the legislative responsibility of Congress with respect to trade agreements. At the same time, the process was designed to ensure certain and expeditious action on the results of the negotiation and on the implementing bill with no amendments.
DESCRIPTION OF H.R. 2621 AS APPROVED:
H.R. 2621 would establish the principal trade negotiating objectives for concluding trade agreements, as follows: barriers and policies directly related to trade, services, foreign direct investment, intellectual property, transparency, and World Trade Organization (WTO) extended negotiations. In addition, the objectives would include agriculture; including reducing duties and export subsidies, and addressing State trading enterprises, new technologies, unjustified sanitary, and phytosanitary standards. Finally, the principal negotiating objectives would include those aspects of foreign policies and practices regarding labor, environment, and other matters that are directly related to trade, to:
H.R. 2621 would provide that the President should take into account the relationship between trade agreements and other important priorities of the United States and seek to ensure that trade agreements complement and reinforce other policy goals. However, fast track would not apply to such matters.
H.R. 2621 would provide certain guidance to U.S. negotiators to be taken into account in trade negotiations. Specifically, negotiators would take into account U.S. domestic objectives, including protection of health and safety, essential security, environmental, consumer and employment opportunity interests. In addition, the United States Trade Representative (USTR) would be required to preserve the ability of the United States to enforce vigorously its trade laws and avoid agreements which lessen the effectiveness of domestic and international disciplines on unfair trade. Finally, in determining whether to enter into negotiations with a particular country, the President would be required to take into account whether that country has implemented its WTO obligations.
H.R. 2621 would extend fast-track authority to agreements entered into before October 1, 2001. In addition, an extension (until October 1, 2005) would be permitted unless Congress passes a disapproval resolution. The bill would provide that bills implementing trade agreements may qualify for fast track procedures only if those bills consist solely of:
The bill would provide tariff proclamation authority to the President to negotiate certain tariff reductions without the need for Congressional approval.
The bill would establish a number of requirements that the President consult with Congress. Specifically, the President would be required to provide written notice and consult with the relevant committees at least 60 calendar days prior to entering into negotiations. In addition, there are additional consultation requirements with respect to trade agreements where the subject matter concerns two of the principal negotiating objectives: the objective concerning trade barriers and distortions that are directly related to trade, and the objective concerning labor, the environment, and other matters. Finally, the bill would provide additional consultation requirements for certain negotiations regarding agriculture.
An exception from the prenegotiation consultations would apply for certain negotiations which have already begun. However, the President would be required to consult with Congress concerning these negotiations as soon as feasible after the enactment of the trade authorities procedures.
The bill would also require the President, before entering into any trade agreement, to consult with the relevant committees concerning the nature of the agreement, how and to what extent the agreement will achieve the applicable purposes, policies, and objectives, and all matters relating to implementation, including the general effect of the agreement on existing laws.
Under H.R. 2621, the President would be required, at least 90 days before entering into an agreement, to notify Congress of his intent to enter into the agreement. Fast track would not apply if both Houses separately agree to a procedural disapproval resolution within any 60-day period stating that the Administration failed to consult with Congress.
The bill would also require the President, within 60 days of signing an agreement, to submit to Congress a preliminary list of existing laws that would be required to bring the United States into compliance with the agreement.
Most of the remaining provisions in the bill are identical to the expired law. Specifically, the bill would require the President, after entering into agreement, to submit to Congress formally the agreement, the implementing legislation, and a statement of administrative action, and there would be no time limit to do so. On the same day as the President formally submits these items, the implementing bill would be introduced (by request) by the House and Senate Majority Leaders.
After formal introduction of the legislation, the House committees of jurisdiction would have 45 days to report the bill. The House would be required to vote on the bill within 15 legislative days after the measure was reported by or automatically discharged from the committees. Fifteen additional days would be provided for Senate committee consideration (assuming the implementing bill was a revenue bill), and Senate floor action would be required within 15 additional days. Accordingly, the maximum period for Congressional consideration of the implementing bill from the date of introduction would be 90 legislative days.
As with the expired provisions, once the bill has been formally introduced, no amendments would be permitted either in committee or in floor action, and the bill would be subject to a straight "up or down" vote. Before formal introduction, the committees of jurisdiction may conduct an informal "mark-up" process including amendments to develop a draft bill together with the administration for introduction.
Finally, the bill would establish a permanent position of Chief Agriculture Negotiator within USTR.
Title II--the Office of the Trade Adjustment Assistance
Title II of the bill would harmonize the general trade adjustment assistance (TAA) and the North American Free Trade Agreement related TAA programs for workers, both of which are administered by the Department of Labor, and the TAA program for firms, administered by the Department of Commerce. H.R. 2621 would re-authorize and extend the termination date for each of these three programs through fiscal year 2000. An additional provision in the bill would require a report by the General Accounting Office on each of the three TAA programs no later than October 1, 1999, that is, one year prior to committee consideration of possible re-authorization of these programs.
Title III--Revenue Provisions
The bill would repeal the 15-day rule of the Internal Revenue Code section 280A(g). The bill would also provide that no reduction in basis is required if the taxpayer: (1) rented the dwelling unit for less than 15 days during the taxable year, and (2) did not claim depreciation on the dwelling unit for the period of rental. The provision would apply to taxable years beginning after December 31, 1997.