1. Trade Legislation and Related Documents

a. Trade Act of 1974, as amended

Partial text of Public Law 93-618 [H.R. 10710], 88 Stat. 1978, approved January 3, 1975, as amended by Public Law 94-455 [H.R. 10612], 90 Stat. 1520 at 1763, approved October 4, 1976; Public Law 96-39 [H.R. 4537], 93 Stat. 144, approved July 26, 1979; Public Law 96-417 [S. 1654], 94 Stat. 1727 at 1746, approved October 10, 1980; Public Law 97-35 [H.R. 3982], 95 Stat. 357 at 881-893, approved August 13, 1981; Public Law 97-164 [H.R. 4482], 96 Stat. 49, approved April 2, 1982; Public Law 97-456 [H.R. 6094], 96 Stat. 2503, approved January 12, 1983; Public Law 98-120 [H.R. 3813], 97 Stat. 809, approved October 12, 1983; Public Law 98-369 [Deficit Reduction Act of 1984; H.R. 4170], 98 Stat. 494 at 1172, approved July 18, 1984; Public Law 98-573 [H.R. 3398], 98 Stat. 2948, approved October 30, 1984; and by Public Law 99–47 [H.R. 2268], 99 Stat. 85, approved June 11, 1985.

AN ACT To promote the development of an open, nondiscriminatory, and fair world economic system, to stimulate fair and free competition between the United States and foreign nations, to foster the economic growth of, and full employment in, the United States, and for other purposes.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That this Act, with the following table of contents, may be cited as the "Trade Act of 1974".1

Sec. 2.2 Statement of Purposes.

The purposes of this Act are, through trade agreements affording mutual benefits

(1) to foster the economic growth of and full employment in the United States and to strengthen economic relations between the United States and foreign countries through open and nondiscriminatory world trade;

(2) to harmonize, reduce, and eliminate barriers to trade on a basis which assures substantially equivalent competitive opportunities for the commerce of the United States;

(3) to establish fairness and equity in international trading relations, including reform of the General Agreement on Tariffs and Trade;

(4) to provide adequate procedures to safeguard American industry and labor against unfair or injurious import competition, and to assist industries, firms, workers, and communities to adjust to changes in international trade flows;

(5) to open up market opportunities for United States commerce in nonmarket economies; and

(6) to provide fair and reasonable access to products of less developed countries in the United States market.

119 U.S.C. 2101.

219 U.S.C. 2102.

TITLE I-NEGOTIATING AND OTHER AUTHORITY

CHAPTER 1-RATES OF DUTY AND OTHER TRADE BARRIERS

Sec. 101. Basic Authority for Trade Agreements.

(a) Whenever the President determines that any existing duties or other import restrictions of any foreign country or the United States are unduly burdening and restricting the foreign trade of the United States and that the purposes of this Act will be promoted thereby, the President

(1) during the 5-year period beginning on the date of the enactment of this Act, may enter into trade agreements with foreign countries or instrumentalities thereof; and

(2) may proclaim such modification or continuance of any existing duty, such continuance of existing duty-free or excise treatment, or such additional duties, as he determines to be required or appropriate to carry out any such trade agreement. (b)(1) Except as provided in paragraph (2), no proclamation pursuant to subsection (a)(2) shall be made decreasing a rate of duty to a rate below 40 percent of the rate existing on January 1, 1975.

(2) Paragraph (1) shall not apply in the case of any article for which the rate of duty existing on January 1, 1975, is not more than 5 percent ad valorem.

(c) No proclamation shall be made pursuant to subsection (a)(2) increasing any rate of duty to, or imposing a rate above, the higher of the following:

(1) the rate which is 50 percent above the rate set forth in rate column numbered 2 of the Tariff Schedules of the United States as in effect on January 1, 1975, or

(2) the rate which is 20 percent ad valorem above the rate existing on January 1, 1975.

Sec. 102.5 Barriers to and Other Distortions of Trade.

(a) The Congress finds that barriers to (and other distortions of) international trade are reducing the growth of foreign markets for the products of United States agriculture, industry, mining, and commerce, diminishing the intended mutual benefits of reciprocal trade concessions, adversely affecting the United States economy, preventing fair and equitable access to supplies, and preventing the development of open and nondiscriminatory trade among nations. The President is urged to take all appropriate and feasible steps within his power (including the full exercise of the rights of the

319 U.S.C. 2111. Sec. 224 of Public Law 96-39 (Trade Agreements Act of 1979; 93 Stat. 235) provided that for purposes of this section, "the rates of duty appearing in rate column numbered 1 of the amendments, if any, made under this subtitle shall be considered to be the rates of duty existing or in effect on January 1, 1975." Sec. 502(c) of the same Act (93 Stat. 251) further provided that for purposes of this section, "the rates of duty in the rate column numbered 1 or 2 as the result of the amendments, if any, made under sections 505, 506, 509, 510, 511, and 514 shall be considered to be the rates of duty existing or in effect on January 1, 1975."

However, sec. 507 of Public Law 96-39 (Trade Agreements Act of 1979; 93 Stat. 258) stated that notwithstanding this provision, the President may proclaim under sec. 101 "a reduction to 5 cents per bushel of 56 pounds in the rate of duty applicable to yellow dent corn under the rate column numbered 1 of the Tariff Schedules of the United States, currently classified under item 130.35."

19 U.S.C. 2112. Sec. 401(c)(1) of Public Law 98-573 (98 Stat. 3015) struck out the word "Nontariff" which had been the first word of the section title.

United States under international agreements) to harmonize, reduce, or eliminate such barriers to (and other distortions of) international trade. The President is further urged to utilize the authority granted by subsection (b) to negotiate trade agreements with other countries and instrumentalities providing on a basis of mutuality for the harmonization, reduction, or elimination of such barriers to (and other distortions of) international trade. Nothing in this subsection shall be construed as prior approval of any legislation which may be necessary to implement an agreement concerning barriers to (or other distortions of) international trade.

(b)(1) Whenever the President determines that any barriers to (or other distortions of) international trade of any foreign country or the United States unduly burden and restrict the foreign trade of the United States or adversely affect the United States economy, or that the imposition of such barriers is likely to result in such a burden, restriction, or effect, and that the purposes of this Act will be promoted thereby, the President, during the 13-year period 6 beginning on the date of the enactment of this Act, may enter into trade agreements with foreign countries or instrumentalities providing for the harmonization, reduction or elimination of such barriers (or other distortions) or providing for the prohibition of or limitations on the imposition of such barriers (or other distortions). (2) 7 (A) Trade agreements that provide for the elimination or reduction of any duty imposed by the United States may be entered into under paragraph (1) only with Israel.

(B) The negotiation of any trade agreement entered into under paragraph (1) with Israel that provides for the elimination or reduction of any duty imposed by the United States shall take fully into account any product that benefits from a discriminatory preferential tariff arrangement between Israel and a third country if the tariff preference on such product had been the subject of a challenge by the United States Government under the authority of section 301 of the Trade Act of 1974 and the General Agreement on Tariffs and Trade.

(C) Notwithstanding any other provision of this section, the requirements of subsections (c) and (e)(1) shall not apply to any trade agreement entered into under paragraph (1) with Israel that provides for the elimination or reduction of any duty imposed by the United States.

(3) Notwithstanding any other provision of law, no trade benefit shall be extended to any country by reason of the extension of any trade benefit to another country under a trade agreement entered into under paragraph (1) with such other country that provides for the elimination or reduction of any duty imposed by the United States.

This time period was extended from a duration of 5 years to 13 years by sec. 1101 of Public Law 96-39 (Trade Agreements Act of 1979; 93 Stat. 307). Therefore, this period will now extend until Jan. 3, 1988.

*Sec. 401(a) of Public Law 98-573 (98 Stat. 3013) inserted the par. designation "(1)" and added new pars. (2)-(4). See also the free standing sections of title IV of Public Law 98-573 regarding to trade agreements entered into with Israel under par. (1) (page 279).

The text beginning at this point to the end of the sentence was added by sec. 8(b)(1) of Public Law 99-47; 99 Stat. 85 (United States-Israel Free Trade Area Implementation Act of 1985).

(4) (A) Notwithstanding paragraph (2), a trade agreement that provides for the elimination or reduction of any duty imposed by the United States may be entered into under paragraph (1) with any country other than Israel if—

(i) such country requested the negotiation of such an agreement, and

(ii) the President, at least 60 days prior to the date notice is provided under subsection (e)(1)—

(I) provides written notice of such negotiations to the Committee on Finance of the Senate and the Committee on Ways and Means of the House of Representatives, and (II) consults with such committees regarding the negotiation of such agreement.

(B) The provisions of section 151 shall not apply to an implementing bill (within the meaning of section 151(b) if—

(i) such implementing bill contains a provision approving of any trade agreement which

(I) is entered into under this section with any country other than Israel, and

(II) provides for the elimination of reduction of any duty imposed by the United States, and

(ii) either

(I) the requirements of subparagraph (A) were not met with respect to the negotiation of such agreement, or

(II) the Committee on Finance of the Senate or the Committee on Ways and Means of the House of Representatives disapproved of the negotiation of such agreement before the close of the 60-day period which begins on the date notice is provided under subsection (A)(ii)(I) with respect to the negotiation of such agreement.

(C) The 60-day period described in subparagraphs (A)(ii) and (B)(ii)(II) shall be computed without regard to

(i) the days on which either House of Congress is not in session because of an adjournment of more than 3 days to a day certain or an adjournment of the Congress sine die, and

(ii) any Saturday and Sunday, not excluded under clause (i), which either House of Congress is not in session.

(c) Before the President enters into any trade agreement under this section providing for the harmonization, reduction, or elimination of a barrier to (or other distortion of) international trade, he shall consult with the Committee on Ways and Means of the House of Representatives, the Committee on Finance of the Senate, and with each committee of the House and the Senate and each joint committee of the Congress which has jurisdiction over legislation involving subject matters which would be affected by such trade agreement. Such consultation shall include all matters relating to the implementation of such trade agreement as provided in subsections (d) and (e). If it is proposed to implement such trade agreement, together with one or more other trade agreements entered into under this section, in a single implementing bill, such consultation shall include the desirability and feasibility of such proposed implementation.

(d) Whenever the President enters into a trade agreement under this section providing for the harmonization, reduction, or elimina

tion of a barrier to (or other distortion of) international trade, he shall submit such agreement, together with a draft of an implementing bill (described in section 151(b)) and a statement of any administrative action proposed to implement such agreement, to the Congress as provided in subsection (e), and such agreement shall enter into. force with respect to the United States only if the provisions of subsection (e) are complied with and the implementing bill submitted by the President is enacted into law.

(e) Each trade agreement submitted to the Congress under this subsection shall enter into force with respect to the United States if (and only if)—

(1) The President, not less than 90 days before the day on which he enters into such trade agreement, notifies the House of Representatives and the Senate of his intention to enter into such an agreement, and promptly thereafter publishes notice of such intention in the Federal Register:

(2) after entering into the agreement, the President transmits a document to the House of Representatives and to the Senate containing a copy of the final legal text of such agreement together with

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(A) a draft of an implementing bill and a statement of any administrative action proposed to implement such agreement, and an explanation as to how the implementing bill and proposed administrative action change or affect existing law, and

(B) a statement of his reasons as to how the agreement serves the interest of United States commerce and as to why the implementing bill and proposed administrative action is required or appropriate to carry out the agreement; and

(3) the implementing bill is enacted into law.

(f) To insure that a foreign country or instrumentality which receives benefits under a trade agreement entered into under this section is subject to the obligations imposed by such agreement, the President may recommend to Congress in the implementing bill and statement of administrative action submitted with respect to such agreement that the benefits and obligations of such agreement apply solely to the parties to such agreement, if such application is consistent with the terms of such agreement. The President may also recommend with respect to any such agreement that the benefits and obligations of such agreement not apply uniformly to all parties to such agreement, if such application is consistent with the terms of such agreement.

(g) For purposes of this section

(1) 10 the term "barrier" includes

(A) the American selling price basis of customs evaluation as defined in section 402 or 402a of the Tariff Act of 1930, as appropriate, and

(B) any duty or other import restriction;

"The words "copy of the final legal text of such agreement" were substituted in lieu of "copy of such agreement" by sec. 1106(c)(1) of Public Law 96-39 (Trade Agreements Act of 1979; 93 Stat. 311).

10 Sec. 401(b) of Public Law 98-573 (98 Stat. 3015) amended and restated par. (1). Previously, the definition of barrier included only the text found in subpar. (A),