Trade in the 107th Congress: An Overview

Report for Congress
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Trade Legislation in the 107 Congress:
An Overview
Updated September 4, 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 107 Congress: An Overview
Summary
Congressional leaders and the Bush Administration placed international tradeth
issues high on the legislative agenda since the beginning of the 107 Congress.
During the first session, Congress approved a free trade agreement with Jordan, a
bilateral agreement with Vietnam, and a provision to allow Mexican trucks greater
access to U. S. highways. The recently approved Trade Act of 2002, addressed much
of the trade agenda that was still pending, including granting trade promotion (“fast-
track”) authority for the President, providing trade adjustment assistance (TAA) for
firms and workers, and reauthorizing the Generalized System of Preferences and the
Andean Trade Preference.
This report provides an overview of the major trade bills considered by
Congress in 2001-2002 and discusses the background and legislative developments
for each issue. An appendix listing significant trade legislation is also provided.
The Bush Administration had 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.
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 sought from increased import competition, which was granted by the
President through “Section 201” protection.
Trade issues that have not yet been fully addressed in the 107th Congress include
trade remedy reform measures, especially with regard to Section 201, and
reauthorization of the Export Administration Act.
At the beginning of the 107th Congress, many Members expressed the hope that
Congress and the Administration will be able to come together to reach consensus
on a broad trade agenda. The Trade Act of 2002, through its often contentious debate
and narrow passage in the House, illustrated that despite major trade policy divisions,
especially around the issue of TPA, the Congress was able to work together to pass
legislation that addressed major trade issues before the 107th Congress.



Contents
In troduction ......................................................1
Current Status of Legislation.....................................1
Trade Promotion (“Fast-Track”) Authority..............................2
Background ..............................................2
House Action.............................................3
Senate Actions............................................4
Final Passage.............................................4
Trade Promotion Authority Provisions.........................4
Trade Agreements and Trade Preferences...............................5
United States—Jordan Free Trade Agreement.......................5
Background ..............................................5
Legislative Developments...................................5
Vietnam Bilateral Trade Agreement...............................6
Background ..............................................6
Legislative Developments...................................7
Trade Relations with China......................................7
Background ..............................................7
Legislation ...............................................8
Normal Trade Relations.........................................8
Background ..............................................8
Recent Developments......................................9
Legislation ...............................................9
Andean Trade Preference Act Extension............................9
Background ..............................................9
Recent Developments.....................................10
ATPDEA Provisions......................................10
Generalized System of Preferences Extension.......................10
Background .............................................10
Recent Developments.....................................11
GSP Amendments........................................11
Legislation Affecting Exports.......................................11
Export Administration Act......................................11
Background .............................................12
Legislation ..............................................12
Export-Import Bank Reauthorization..............................13
Background .............................................13
House Actions...........................................14
Senate Actions...........................................14
Final Passage............................................14
Congressional Action Affecting Specific Industries......................14
U.S.—Canada Softwood Lumber Debate..........................14
Background .............................................14
Recent Developments.....................................15



U.S. Steel Industry Issues.......................................16
Background .............................................16
Recent Developments.....................................17
Legislation ..............................................18
Trade Remedies Reform and Other Administrative Issues.................19
Section 201 Reform...........................................19
Background .............................................19
Legislation ..............................................20
WTO Rulings, and Amendments to U.S. Laws......................20
Background .............................................20
Copyright Dispute........................................21
Antidumping Act of 1916..................................21
The “Byrd Amendment”...................................22
Foreign Sales Corporation..................................23
NAFTA and the Mexican Trucking Dispute........................24
Background .............................................24
Recent Developments.....................................25
Trade Adjustment Assistance for Firms, Industries, and Workers .......26
Background .............................................26
Recent Developments.....................................27
Conclusion ......................................................27
Appendix: Trade Legislation in the 107th Congress.......................28
Trade Promotion Authority.....................................28
Trade Agreements and Trade Preferences..........................29
Legislation Affecting Exports...................................33
Legislation Affecting Specific Industries...........................36
Trade Remedies and Other Administrative Reform..................37



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Trade Legislation in the 107 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 enacted 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 presented a comprehensive trade agenda
highlighting trade expansion and liberalization, and requested that he be provided
with trade promotion authority as soon as possible. The Trade Act of 2002, enacted
on August 6, 2002, provided this authority, along with an expansion of Trade
Adjustment Assistance for workers and firms, and reauthorization of certain trade
preferences.
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
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 was 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).



On August 6, 2002, President Bush signed the Trade Act of 2002 (P.L. 107-

210), an omnibus trade bill that granted Presidential Trade Promotion Authority,


revised and extended Trade Adjustment Assistance for firms and workers, extended
the Andean Trade Preference and the Generalized System of Preferences. On June
14, 2002, President Bush signed the Export-Import Bank Reauthorization Act of
2002 (P.L. 107-189) providing for the reauthorization of Export-Import Bank through
fiscal year 2006.
Other legislation which might receive congressional attention in the remaining
days of the 107th Congress includes reauthorizing the Export Administration Act,
extending permanent normal trade relations status to Russia, and efforts to reform
trade remedies including Section 201.
Trade Promotion (“Fast-Track”) Authority
One of the most significant issues facing the 107th Congress was whether or not
to authorize expedited enactment of trade agreements negotiated by the President.
Trade promotion authority (TPA) means that under certain conditions, the Congress
consents to address trade agreements negotiated by the President without amendment
and agrees to move the measures through congressional committees and both houses
of Congress within a specific deadline.
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 nontariff 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 two 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 had 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


1 CRS Report RS20039, Fast Track Implementation of Trade Agreements: Issues for
the 107th Congress, by Lenore Sek.

November 9, 2001, in Doha, Qatar.2 Because WTO trade ministers had signed a
Declaration agreeing to consider new multilateral negotiations, the Administration
believed that presidential TPA was all the more important.
In the 107th Congress, however, trade promotion authority (or fast-track) had
proven to be a divisive issue. Some members favored giving the White House the
authority it sought, while others believed that it “preclude(s) Congress from fulfilling
its Constitutional obligations to debate, and, if necessary, to amend trade bills.”3 A
second issue concerned how labor rights 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 trade agreements at all. Third, some Members of Congress and industry
groups had 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, concerned 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 were
open to compromise on a TAA expansion provision, but were opposed to granting
affected workers extended health care benefits, as proposed by some Democrats, due
to the high costs involved.
House Action. On October 3, 2001 House Ways and Means Committee
Chairman Bill Thomas introduced H.R. 3005, the Bipartisan Trade Promotion
Authority Act of 2001, which was subsequently reported by the Committee on
October 16. This bill sought to authorize the President to negotiate tariff and
nontariff trade agreements through June 30, 2005, with a 2-year extension possible
under certain conditions. The House subsequently passed H.R. 3005 on December

6, 2001 by a vote of 215-214.


Also on October 3, Ways and Means Trade Subcommittee Chairman Crane
introduced H.R. 3009, the Andean Trade Partnership and Drug Eradication Act. The
bill was reported, as amended, by the committee on November 14. The bill passed
the House by voice vote on November 16, 2001.
On June 19, 2002, following Senate passage of H.R. 3009 as a more
comprehensive trade bill (see below), House Ways and Means Committee Chairman
Thomas sought to offer alternative language for H.R. 3009, arguing that the House
would be at a disadvantage in conference because it had passed H.R. 3009 as a stand-
alone Andean trade bill. In departure from usual practice, he proposed a rule (H.Res.
450) offering alternative language for H.R. 3009 that included the House-approved
TPA bill, reauthorization of Andean trade preferences and the Generalized System


2 The 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.
3 Byrd, Robert C. “Fast Track: A Track to Tinkering with Constitutional Authority,” press
release, November 9, 2001.

of Preferences, Trade Adjustment Assistance, and other provisions. The rule
provided that “ . . . the House shall be considered to have insisted on its amendment
. . . “ Many House Democrats protested that the legislative process was being
bypassed, since the House had not even considered some of the language in the
Thomas rule.4 The rule was passed by the House on June 26, by a vote of 216-215.
Senate Actions. On February 28, the Senate Finance Committee reported
legislation in the nature of a substitute to the House-passed H.R. 3009. The Senate
began consideration of the bill on May 1, 2002. On May 10, Senate Finance
Committee Chairman Baucus proposed S. Amdt. 3401, an amendment in the nature
of a substitute to H.R. 3009, an omnibus trade package that included Presidential
trade promotion authority, Trade Adjustment Assistance for firms and workers, the
Andean Trade Preference, renewal of the Generalized System of Preferences,
Customs reauthorization, amendments to the Arms Export Control Act, and other
miscellaneous provisions. This amendment was subsequently agreed to by voice vote
on May 23. H.R. 3009, as amended, was passed by the Senate on the same date by
a vote of 66-30.
Final Passage. Consideration of the conference report accompanying H.R.
3009 (H.Rept. 107-624) began in the House on July 27, 2002. The conference report
passed in the House on the same date by a vote of 215-212. The Senate began
consideration of the conference report on July 30, 2002. The Senate passed the
measure on August 1 by a vote of 67-31.
President Bush signed H.R. 3009 on August 6, 2002 (P.L. 107-210).
Trade Promotion Authority Provisions. P.L. 107-210 provides the
President with trade promotion authority for agreements reached by June 1, 2005,
renewable until June 1, 2007 if (a) the President requests it; and (b) neither house of
Congress passes a resolution of disapproval.
The law lists both overall and principal objectives in trade negotiations, and
includes actions the President must take to maintain U.S. competitiveness. Trade
objectives also include promoting respect for the environment and for workers’ and
children’s rights.
Under provisions of the act, the President also must satisfy certain consultation
and assessment requirements by consulting regularly with congressional revenue
committees, the newly established Congressional Oversight Group, and other
committees the President deems appropriate. If the Administration does not comply
with the reporting requirements, either House of Congress may pass a “procedural
disapproval resolution.” If the other House passes the resolution within 60 days, the
trade authorities procedures will not apply to the trade agreement(s) submitted.


4 CRS Trade Electronic Briefing Book, “Trade Promotion Authority (Fast-Track Authority
for Trade Agreements), by Lenore Sek, [http://www.congress.gov/brbk/html/ebtra9.html].

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.
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 nontariff 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 a5
precedent for future FTA’s.
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


5 CRS Trade Electronic Briefing Book, “Jordan-U.S. Free Trade Agreement,” by Lenore Sek
[ h t t p : / / www.congr e ss.go v/ br bk/ h t ml / e bt r a 117.ht ml ] .
6 CRS Report RL30652, U.S.-Jordan Free Trade Agreement, by Mary Jane Bolle.

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.
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 onth
July 13, 2000. President Clinton did not submit the agreement to the 106 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
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.


7 CRS 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.
8 Ibid., and CRS Report 98-545 E, The Jackson-Vanik Amendment: A Survey, by Vladimir
N. Pregelj.
9 CRS Report RL30225, Most-Favored Nation Status of the People’s Republic of China, by
Vladimir N. Pregelj.

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
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 “nonmarket 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 economic12
relations with the United States.
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 strong13


congressional opposition.
10 CRS Report RS20139, China and the World Trade Organization, by Wayne Morrison.
11 Ibid.
12 CRS Report 98-545 E, The Jackson-Vanik Amendment: A Survey, by Vladimir Pregelj.
13 CRS Report 96-463 E, Country Applicability of the U.S. Normal Trade Relations (Most-
(continued...)

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.
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. The preference was recently renewed by the Trade Act of 2002.
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 effects to the U.S. economy as a
result of the measure, and (2) an assessment of the preference’s effectiveness as a14
tool for economic diversification and growth. 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.


13 (...continued)
Favored-Nation) Status, by Vladimir Pregelj.
14 CRS 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.

Recent Developments. The Andean trade preference was expanded and
extended through December 31, 2006 (and retroactively to December 4, 2001 for
those items that would have received duty-free or preferential treatment under the
ATPA) in the Andean Trade Promotion and Drug Eradication Act (ATPDEA), title
XXXI of the Trade Act of 2002 (August 6, 2002, P.L. 107-210).
ATPDEA Provisions. The Andean Trade Promotion and Drug Eradication
Act reflects the findings of the 107th Congress that extending and expanding trade
preferences to beneficiary countries is part of an effective U.S. foreign policy to
counter illicit drug trafficking from the Andean region. To enhance the effects of the
expired ATPA, it extends preferential treatment through December 31, 2006 and
expands it to cover many Andean exports previously excluded, such as certain textile
and apparel articles, footwear, leather products, petroleum, watches, and canned tuna.
In general, the provisions provide treatment similar to that received by Caribbean
countries under the Caribbean Basin Trade Promotion Act (CBTPA) and incorporates
customs procedures, including more relaxed certificate of origin rules, similar to
those found in the North American Free Trade Agreement (NAFTA). ATPDEA also
tightens transshipment and safeguard provisions to address concerns of U.S. textile
and apparel manufacturers.15
Generalized System of Preferences Extension
The generalized system of preferences (GSP) is a broad, World Trade
Organization-sanctioned program whereby individual – mostly industrialized –
countries unilaterally provide preferential trade treatment to imports from less
developed countries (LDCs). The United States implemented the GSP as of January
1, 1976, under the Trade Act of 1974. General GSP authority expired at the end of
September 2001, and was recently renewed in title XLI of the Trade Act of 2002.
Background. The GSP is a broad, WTO-sanctioned program whereby
individual industrialized countries unilaterally provide preferential trade treatment
to 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


15 CRS Trade Briefing Book, “The Andean Trade Preference Act,” by J. F. Hornbeck,
[ h t t p : / / www.congr e ss.go v/ br bk/ h t ml / e bt r a 127.ht ml ] .

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 supported GSP reauthorization. On the other
hand, opponents to the measure argued 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 August 6, 2002, President Bush signed the
Trade Act of 2002 (P.L. 107-210). Title XLI extends the GSP through December 31,
2006, and retroactively to September 20, 2001 for those articles that would have been
given duty-free treatment under the GSP provisions of the Trade Act of 1974.
GSP Amendments. Section 4102 of the Trade Act of 2002 expands the
qualifications for GSP treatment to exclude those countries that have “not taken steps
to support the efforts of the United States to combat terrorism.” The Act also
excludes those countries that do not have “a minimum age for the employment of
children, and a prohibition on the worst forms of child labor.”
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


16 CRS Trade Electronic Briefing Book, “Generalized System of Preferences, by Vladimir
M. Pregelj [http://www.congress.gov/brbk/html/ebtra29.html].
17 CRS Report 96-389 E, Generalized System of Preferences, by William H. Cooper.

security and commercial interests.18 Export administration is one of the issues on the
trade agenda that was not dealt with in the Trade Act of 2002, and therefore, remains
to be addressed in the 107th Congress.
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 put in place
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


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
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 addition of provisions related to oversight of nuclear transfers to North Korea.


18 CRS Trade Electronic Briefing Book, “Export Controls,” by Ian F. Fergusson.
[ h t t p : / / www.congr e ss.go v/ br bk/ h t ml / e bt r a 26.ht ml ] .
19 CRS Report RL30689, The Export Administration Act: Controversy and Prospects, by Ian
F. Fergusson.
20 Executive Order 13222 of August 17, 2001 (66 FR 44025).

The House International Relations Committee reported the bill with 35 amendments
(yeas and nays, 26 -7). The bill was subsequently reported on November 16.21 The
House Armed Services Committee reported an amended version of the bill on March

8, 2002.


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.22
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
temporary extension of the Eximbank’s charter until March 31, 2002. Public Law
107-189, signed by the President on June 14, 2002, provided a reauthorization of the
bank’s charter through September 30, 2006.
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 and23
advice to U.S. exporters and commercial banks and foreign borrowers.
Eximbank’s government-sponsored finance programs have long been
controversial. In the 107th Congress, some Members have expressed their opposition


21 For a detailed analysis and comparison of both bills, see CRS Report RL30169: Export
Administration Act of 1979 Reauthorization., Ian Fergusson, coordinator.
22 CRS Report RL30169, Export Administration Act of 1979 Reauthorization, coordinated
by Ian F. Fergusson.
23 CRS Report 98-568 E, Export-Import Bank: Background and Legislative Issues, by
James K. Jackson.

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.
House Actions. 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. H.R. 2871 was reported to the House on November 15,

2001.


After Senate passage in mid-March of S. 1372, the House took up the bill,
struck all but the enacting clause, and inserted the text of H.R. 2871. The bill passed
without objection on the same date.
Senate Actions. S. 1372 (Sarbanes), a companion bill to H.R. 2871 would
extend the authority of the Eximbank through fiscal year 2005. as amended, passed
the Senate on March 14, 2002 by unanimous consent.
Final Passage. The conference report on the measure (H.Rept. 107-487 was
filed on May 24, 2002, and was subsequently passed by the House on June 5, 2002
(yeas 344, nays 78), and agreed to by unanimous consent in the Senate on June 6.
President Bush signed the bill on June 14, 2002 (P.L. 107-189).
Congressional Action Affecting Specific Industries
U.S.—Canada Softwood Lumber Debate
A 5-year softwood lumber agreement24 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


24 For 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].

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
administratively. Because the lumber is being sold noncompetitively 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 an illegal subsidy.
They state further that Canada has compromised repeatedly with the United States
to forestall a trade war more than 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 some “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.”25


25 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 ].

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 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 May 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. These investigations are currently being challenged in the
WTO.
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.26
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 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
2000.27 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


26 See CRS Report RL31107, Steel Industry and Trade Issues, by Stephen Cooney.
27 U.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.

imports.”28 The prevailing ITC recommendation to the President included the
imposition of tariffs of 20% for most products.29
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.
!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%,30
declining by 1% per year for the subsequent two years.
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


28 U.S. International Trade Commission, Steel, Investigation No. TA-201-73, Publication

3479, December 2001.


29 U.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.


30 CRS Trade Electronic Briefing Book, “Trade

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 toward 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,
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 mayth
be considered in the 107 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. 31
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 resemblesth
two bills (H.R. 412, S. 261) introduced in the 106 Congress. The bill is currently in
committee.
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 theth

106 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


31 CRS Report RL30461, Trade Remedy Law Reform in the 107th Congress, by William H.
Cooper.

comply, the complainant may request a suspension of WTO obligations toward the
respondent, thus giving the complainant permission to retaliate.32
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”33
(Agreement on Trade-Related Aspects of Intellectual Property Rights). The
provision permits restaurants, bars, and many retail stores to play music and TV
broadcasts without 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 to34
a European industry fund to benefit EU musicians.
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.”35


32 CRS 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
33 World 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].
34 Inside U.S. Trade, “Zoellick, Lamy Agree to Settle Copyright Dispute, 1916 Act
Remains,” December 21, 2001.
35 World 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
(continued...)

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, 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. When this deadline was not met, the parties agreed to suspend arbitration
and give the United States until June 30, 2002 to repeal the law. No action has yet
been taken to restart the arbitration since the expiration of the June 30 deadline.
On December 20, 2002, 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. On April 23, 2002, a
corresponding Senate bill (S. 2224) was introduced. No action has been taken on
either bill.
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 will 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, 2001.36
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, 2001.


35 (...continued)
DS162/14); and United States —Anti-Dumping Act of 1916 — Complaint by Japan
(Reports DS162/R, DS162/R/Add.1 and DS162/AB/R).
36 66 FR 33920.

On September 3, 2002, the dispute settlement panel suggested that the United
States repeal the law. The United States intends to appeal the ruling.
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.37
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 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
five 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.”38 Subsequently, the EU asked to be
allowed retaliatory tariffs of $4 billion—a request that was put on hold pending a


37 See CRS Report RS20746, Export Tax Benefits and the WTO: Foreign Sales Corporations
(FSCs) and the Extraterritorial (ET) Replacement Provisions, by David Brumbaugh
38 World 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.

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.
Furthermore, on August 30, WTO arbitrators issued a report giving the EU
authority to impose up to $4 billion of retaliatory tariffs on imports from the United
States. In the meantime, House Ways and Means Committee Chairman Bill on July
11 introduced H.R. 5095, a bill that would, on the one hand, repeal the ETI
provisions, while at the same time provide a range of tax reductions for U.S. firms’
overseas business operations.39
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.40
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.


39 CRS Report RS21143, Policy Options for U.S. Export Taxation, by David L. Brumbaugh.
40 See CRS Report RL31028, North American Free Trade Agreement: Truck Safety
Considerations, by Paul Rothberg. CRS Issue Brief IB10070, Mexico-U.S. Relations: Issuesth
for the 107 Congress, by Larry K. Storrs.

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.41 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 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


41 The 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.

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.42
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 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.43
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).44 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


42 United 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.
43 CRS 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.
[ ht t p: / / www.congr e ss.gov/ br bk/ ht ml / e bt r a 57.ht ml ] .
44 CRS Report RS 21078, Trade Adjustment Assistance for Workers: Legislation in the 107th
Congress, by Paul J. Graney. CRS Trade Electronic Briefing Book “Trade Adjustment
Assistance for Workers” by Paul Graney and Celinda Franco
[http://www.congress.gov/brbk/html/ebtra85.html]. CRS Report 94-801 EPW, Trade
Adjustment Assistance Programs for Dislocated Workers, by James R. Storey.

Economic Development Administration, of which $10 million is allocated to firm
TAA.
Recent Developments. The Trade Act of 2002 (P.L. 107-210) consolidated
and extended the TAA program through FY2007. Other important changes to TAA
include an expansion of cash benefits for workers up to a maximum of 130 weeks of
benefits (26 or more weeks from unemployment compensation, and the remainder
from TAA) ; a new refundable and advanceable tax credit for 65% of health
insurance premiums for eligible TAA recipients; a new TAA program for family
farmers; and a new demonstration project for alternative TAA for older workers,
intended to make up 50% of the wage difference (up to $10,000) between the wage
on a new job and an old one for up to two years in order to facilitate speedier job45
transitions. The firm TAA program was not amended, but was extended through
FY2007 at a higher annual authorized funding level of $16 million.
Conclusion
Members of Congress and the Administration placed trade issues high on the
legislative agenda for the 107th Congress. At the beginning of the second session of
the 107th Congress, progress was 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. Other significant issues were acted on through the Trade Act of 2002 (P.L.
107-210), an omnibus bill including Presidential trade promotion authority, renewals
of trade preferences, and reauthorization of worker and firm TAA. The Congress may
still address export controls, granting of permanent NTR status to Russia and other
former nonmarket economy (NME) countries, and possibly legislation relating to
WTO dispute resolutions during the remaining days of the current Congress.


45 CRS Report RS21078, Trade Adjustment Assistance for Workers: Legislation in the 107th
Congress, by Paul J. Graney.

Appendix: Trade Legislation in the 107th Congress
Trade Promotion Authority
Bill/SponsorDescriptionLegislative ActionCRS Products
H.R. 3005 (Thomas)To extend trade authorities procedures withOctober 3, 2001: Introduced. ReferredCRS 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 FinanceImplementation: Expedited Procedures and
Committee mark-up session held. Congressional Control in Existing Law, by Richard
December 18, 2001: Legislation in theS. Beth
iki/CRS-RL31070nature of a substitute approved byCommittee. CRS Report RS20039, Fast Track Implementation of
g/wFeb. 28, 2002: Reported by SenatorTrade Agreements: Issues for the 107th Congress, by
s.orBaucus (S. Rept. 107-139). Placed onLenore Sek
leakSenate legislative calendar undergeneral orders.CRS Report RS21004, Fast Track Negotiating
://wikiSEE ATPA (H.R. 3009)Authority and Trade Promotion Authority:Chronology for Major Votes, by Carolyn C. Smith
httpCRS Issue Brief IB10084, Trade Promotion
Authority (Fast-Track Authority for Trade
Agreements): Background and Developments in theth
107 Congress, by Lenore Sek
CRS Report 97-896, Why Certain Trade Agreements
are Approved as Congressional-Executive
Agreements Rather Than as Treaties, by Jeanne J.
Gr i mme t t
CRS Report 97-817, Agriculture and Fast Track or
Trade Promotion Authority, by Geoffrey S. Becker
and Charles Hanrahan



Bill/SponsorDescriptionLegislative ActionCRS Products
Trade Agreements and Trade Preferences
S. 643 (Baucus)A bill to implement the agreement establishing aApr. 4, 2001: Introduced. Referred toCRS 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 reportedCRS Report RS20529, United States-Israel Free
with an amendment in the nature of aTrade Area: Jordanian-Israeli Qualifying Industrial
substitute favorably.Zones, by Joshua Ruebner.
Sept. 4, 2001: Finance Committee.
Reported by Senator Baucus with anCRS 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.
SEE H.R. 2603CRS Issue Brief IB93085, Jordan: U.S. Relations
and Bilateral Issues, by Alfred B. Prados
H.R. 2603 (Thomas)To implement the agreement establishing aJul. 24, 2001: Introduced. Referred to
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
iki/CRS-RL31070session held. Ordered to be reported inthe Nature of a Substitute (H.Rept. 107-
g/w176, part 1).
s.orJuly 31, 2001: Discharged from
leakCommittee on Judiciary. Passed
House under suspension of rules, by
://wikivoice vote.
httpJuly 31, 2001: Received in the Senateand 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.



Bill/SponsorDescriptionLegislative ActionCRS Products
H.J.Res. 51 (Armey)Approving the extension of nondiscriminatoryJune 12, 2001: Introduced. Referred toCRS Report RL30416, The Vietnam-U.S. Bilateral
treatment with respect to the products of theCommittee 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 toCRS Report RL30896, Vietnams 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 inApproval 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 withoutCRS 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
CRS Issue Brief IB93107, Normal-Trade-RelationsH.J.Res. 55 Disapproving the extension of the waiverJune 21, 2001: Introduced. Referred to
(Most-Favored-Nation) Policy of the United States,(Rohrabacher)authority contained in section 402(c) of theCommittee on Ways and Means
by Vladimir N. PregeljTrade Act of 1974 with respect to Vietnam.July 12, 2001: Committee consideration
iki/CRS-RL31070and mark-up session held. Ordered to
g/wbe reported adversely by voice vote.July 23, 2001: Reported adversely
s.orH.Rept. 107-154.
leakJuly 26, 2001: Failed on passage in
House (Roll no. 275, 91 yeas-324
://wiki nays).


http

Bill/SponsorDescriptionLegislative ActionCRS Products
H.J. Res. 50Disapproving the extension of the waiverJun. 5, 2001: Introduced. Referred toCRS Report RL30225, Most-Favored-Nation Status of
(Rohrabacher)authority contained in section 402(c) of the TradeCommittee on Ways and Means.the Peoples Republic of China, by Vladimir N. Pregelj
Act of 1974 with respect to the Peoples RepublicJul. 12, 2001: Cte. consideration and
of China.mark-up session held. Ordered to beCRS 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 naysin 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
iki/CRS-RL31070CRS Issue Brief IB93107, Normal-Trade-Relations
g/w(Most-Favored-Nation) Policy of the United States, byVladimir N. Pregelj
s.or
leakCRS Issue Brief 91121, China-U.S. Trade Issues, by
Wayne M. Morrison
://wiki
httpH.R. 3553 (Thomas)To provide for the extension of nondiscriminatorytreatment (normal trade relations treatment) to theDec. 20, 2001: Introduced. Referred tothe Committee on Ways and Means.CRS Report 98-545 E, The Jackson-Vanik Amendment:A Survey, by Vladimir N. Pregelj.
products of the Russian Federation.
CRS Report 96-463 E, Country Applicability of the
U.S. Normal Trade Relations (Most-Favored-Nation)S. 1861 (Lugar) To authorize the extension of nondiscriminatoryDec. 20, 2001: Introduced. Referred to
Status, by Vladimir N. Pregelj.treatment (normal trade relations treatment) to theSenate Finance Committee.
products of Russia.
See also applicable CRS reports on individual
countries. H.R.1318 (Pitts)To authorize the extension of nondiscriminatoryMar. 29, 2001: Introduced. Referred to
treatment (normal trade relations treatment) to theCommittee on Ways and Means.
products of Kazakhstan.Apr. 16, 2001: Referred to Trade
Subcommittee.
H.R. 3440To extend nondiscriminatory treatment to theDec. 10, 2001: Introduced. Referred to
(Rohrabacher)products of Afghanistan.Committee on Ways and Means.
H.R. 3939 (Kaptur)To authorize the extension of nondiscriminatoryMar. 12, 2002: Introduced. Referred to
treatment (normal trade relations treatment) to theCommittee on Ways and Means.
products of Ukraine.
H.R. 3979 (Pitts)To provide for the extension of nondiscriminatoryMar. 14, 2002: Introduced. Referred to
treatment (normal trade relations treatment) to theCommittee on Ways and Means.


products of the Republic of Uzbekistan

Bill/SponsorDescriptionLegislative ActionCRS Products
H.R. 796 (Rangel)To normalize trade relations with Cuba, and forFebruary 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, andFebruary 27, 2001: Introduced.
for other purposes.Referred to Senate Finance Committee.
S. 525 (Graham)A bill to expand trade benefits to certain AndeanMar. 13, 2001: Introduced. Referred toCRS Report RL30790, The Andean Trade Preference
countries, and for other purposes. Committee on FinanceAct: 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 SenateCRS Report RL30971, Latin America and the
Finance Committee as an amendment inCaribbean: Legislative Issues in 2001, coordinated by
the nature of a substitute for H.R. 3009.Larry K. Storrs.
S. Rept. 107-126.
SEE ATPA (H.R. 3009)CRS Report RL31016, Andean Regional Initiative
(ARI): FY2002 Assistance for Colombia and
iki/CRS-RL31070Neighbors, by Larry K. Storrs and Nina MariaSerafino.H.R. 3009 (Crane) To extend the Andean Trade Preference Act, togrant additional trade benefits under that Act, andOct. 3, 2001: Introduced. Referred toCommittee on Ways and Means.
g/wfor other purposes.Oct. 5, 2001: Committee consideration.
s.orCRS Issue Brief IB88093, Drug Control: InternationalOrdered to be reported, as amended, by
leakPolicy and Options, by Raphael Perl.voice vote.
Nov. 16, 2001: Passed House by voice
://wikiCRS Issue Brief 95017, Trade and the Americas, byvote. Received in Senate.
httpRay Ahearn.Nov. 29, 2001: Senate FinanceCommittee 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
co n s i d ered .
May 1, 2002: Motion to proceed agreed
to (yeas 77, nays 21). Committee
substitute amendment withdrawn.
May 23, 2002: S.Amdt,. 3401 passed
Senate.
July 27,2002: Conference Report
(H.Rpt. 107-624) passed House.
August 1, 2002: Conference Report
Passed Senate.
August 6, 2002: Signed by President.
Became P.L. 107-210.



Bill/SponsorDescriptionLegislative ActionCRS Products
S. 1671 (Baucus)A bill to amend the Trade Act of 1974 toNov. 9, 2001: Introduced. Referred to
provide for duty-free treatment under theCommittee on Finance.CRS Report RS20063, U.S.-Sub-Saharan Africa Trade
Generalized System of Preferences (GSP) forand Investment: Programs and Policy Direction, by
certain hand-knotted or hand-woven carpets andLenore 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 theOct. 3,2001: Introduced. Referred to
H.R. 3010 (Crane)Generalized System of Preferences untilCommittee 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).
SEE ATPA (H.R. 3009)
Legislation Affecting Exports
iki/CRS-RL31070S. 149 (Enzi)A bill to provide authority to control exports,Jan. 23,2001: Introduced. Referred toCRS Report RL31175, High Performance
g/wand for other purposes. Cte. on Banking, Finance, and UrbanComputers and Export Control Policy, by Glenn
s.orAffairs.McLoughlin and Ian F. Fergusson.
leakFeb. 7 and 14, 2001: Hearings held.
Apr. 2, 2001: Reported out of Cte. CRS Report RL30689, The Export Administration
://wikiReport 107-10.Act: Controversy and Prospects, by Ian F.
httpApr. 26, 2001: Debated in Senate.Sept. 4, 2001: Measure laid before theFergusson.
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; RecordCRS 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.
F ergu sso n
CRS Report 98-116 F, Nuclear, Biological,
Chemical, and Missile Proliferation Sanctions:
Selected Current Law, by Dianne E. Rennack.



Bill/SponsorDescriptionLegislative ActionCRS Products
H.R. 2581 (Gilman)To provide authority to control exports, andJuly 20, 2001: Introduced. Referred toCRS Report RL31175, High Performance
other purposesHouse International RelationsComputers and Export Control Policy, by Glenn
Committee and House RulesMcLoughlin and Ian F. Fergusson.
Committee
Aug. 1, 2001: International RelationsCRS Report RL30689, The Export Administration
Committee consideration and mark-upAct: Controversy and Prospects, by Ian F.
session held. Ordered to be reportedFergusson.
(yeas 26, nays 7).
Nov. 16, 2001: Reported byCRS 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, byCRS 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, andAct of 1979 Reauthorization, coordinated by Ian F.
Intelligence Committees. Placed on theFergusson
Union Calendar (No. 212).
CRS Report 98-116 F, Nuclear, Biological,
iki/CRS-RL31070Chemical, and Missile Proliferation Sanctions:
g/wSelected Current Law, by Dianne E. Rennack.


s.or
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http

Bill/SponsorDescriptionLegislative ActionCRS Products
H.R. 918 (Hall)To prohibit the importation of diamonds unlessMarch 7, 2001: Introduced. Referred toCRS Report 98-568 E, Export-Import Bank:
the countries exporting the diamonds into theCommittee on Ways and Means andBackground and Legislative Issues, by James K.
United States have in place a system of controlsCommittee on Financial Services.Jackson
on rough diamonds, and for other purposes.April 10, 2001: Referred to
Subcommittee on InternationalCRS 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 1945May 5, 2001: Introduced. Referred to
to prohibit the Export-Import Bank of theCommittee on Financial Services.
United States from assisting the export of anyMay 14, 2001: Referred to
good or service to or by any company that isSubcommittee on International
challenging an intellectual property law orMonetary Policy and Trade.
iki/CRS-RL31070government policy of a developing country,which regulates and promotes access to an
g/wHIV/AIDS pharmaceutical or medical
s.ortechnology.
leakH.R. 2871 (Bereuter) To reauthorize the Export-Import Bank of theSept.10, 2001: Introduced. Referred to
://wikiUnited States, and for other purposes.House Committee on FinancialServices.
httpSept. 14: Referred to Subcte. on
International Monetary Policy and
Tr ad e.
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)
SEE S.1372



Bill/SponsorDescriptionLegislative ActionCRS Products
S. 1372 (Sarbanes)A bill to reauthorize the Export-Import Bank ofJul. 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.
May 1, 2002: S. 1372, as amended.
passed House.
June 5, 2002: Conference Report
H.Rpt. 107-187 passed House (344-78).
June 6, 2002: Conference Report
passed Senate (unanimous consent).
June 14, 2002: Signed by President.
Became P.L. 107-189.
iki/CRS-RL31070
g/wLegislation Affecting Specific Industries
s.orH. Con. Res. 46 (Kolbe)Expressing the sense of the Congress regardingFeb. 28, 2001: Introduced. Referred toCRS Issue Brief IB10081, Lumber Imports from
leakhousing affordability and ensuring a competitiveCte. on Ways and Means.Canada: Issues and Events, by Ross W. Gorte and
North American market for softwood lumber.Jeanne Grimmett
://wiki
httpCRS Report RL30826, Softwood Lumber Importsfrom Canada: History and Analysis of the Debate,S. Con. Res. 4 (Nickles) A concurrent resolution expressing the sense ofCongress regarding housing affordability andJan. 29, 2001: Introduced. Referred toCte. on Finance.
by Ross W. Gorte.ensuring a competitive North American market
for softwood lumber.
H. Con. Res. 54Expressing the sense of Congress regarding theMar. 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 ofFeb. 7, 2001: Introduced. Referred toCRS Issue Brief IB10081, Lumber Imports from
Congress regarding subsidized Canadian lumberCte. on Finance.Canada: Issues and Events, by Ross W. Gorte and
exports.Jeanne Grimmett
CRS Report RL30826, Softwood Lumber ImportsH.R. 2181 (DeFazio)To impose certain restrictions on imports ofJune 14, 2001: Introduced. Referred to
from Canada: History and Analysissoftwood lumber products of Canada. Committee on Ways and Means.
June 20, 2001: Referred to Trade
Subcommittee.



Bill/SponsorDescriptionLegislative ActionCRS Products
H.R. 808 (Visclosky) To provide certain safeguards with respect toMar. 1, 2001: Introduced. Referred toCRS Report RL31107, Steel Industry and Trade
the domestic steel industry. Cte. on Ways and Means and Cte. onIssues, 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
[http://www.congress.gov/brbk/html/ebtra126.html]H.J. Res 84 (Jefferson) Disapproving the action taken by the PresidentMar. 7, 2002: Introduced. Referred to
under section 203 of the Trade Act of 1974Cte. 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.
S. 910 (Rockefeller) To provide certain safeguards with respect toMay 17, 2001. Introduced. Referred to
the domestic steel industry. Senate Cte. on Finance.
iki/CRS-RL31070
g/w
s.orS. 957 (Wellstone) A bill to provide certain safeguards with respectMay 24, 2001: Introduced. Referred to
leakto the domestic steel industry.Senate Cte. on Finance.
://wiki
http
Trade Remedies and Other Administrative Reform
H.R. 518 (Regula) To amend the Trade Act of 1974, and for otherFeb. 7, 2001: Introduced. Referred toCRS 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 containedDec. 20, 2001: Introduced. Referred to
CRS Trade Electronic Briefing Book, Section 201 ofin the Act of September 8, 1916.Cte. on the Judiciary.


the Trade Act of 1974, by Jeanne J. Grimmett
[ h t t p : / / www. c o n g r e s s . g o v / b r b k / h t ml / e b t r a 6 8 . h t ml ]

Bill/SponsorDescriptionLegislative ActionCRS Products
H.R. 2299 (Rogers)Making appropriations for the Department ofJun 22, 2001: Reported by HouseCRS Report RL31028, North American Free Trade
Transportation and related agencies for the fiscalCommittee on Appropriations as anAgreement: Truck Safety Considerations, by Paul
year ending September 30, 2002, and for otheroriginal measure (H. Rept 107-108).Rothberg.
purposes. (Section 350 of the conference reportJune 26, 2001: Passed by House, yeas
contains the compromise language on Mexican426, 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
vo t e ) .
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
iki/CRS-RL31070(Record Vote No. 346).
g/wDec. 18, 2001: Signed by President. Became P.L. 107-87.
s.or
leak
S. 1209 (Bingaman)A bill to amend the Trade Act of 1974 toJuly 19, 2001: Introduced. Referred to
://wikiconsolidate and improve the trade adjustmentSenate Committee on Finance.
httpassistance programs, to providecommunity-based economic developmentDec. 4, 2001: Considered byCommittee on Finance. Ordered to be
assistance for trade-affected communities, andreported 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.
SEE ATPA (H.R. 3009)



Bill/SponsorDescriptionLegislative ActionCRS Products
H.R. 3008 (Johnson)To reauthorize the trade adjustment assistanceOct. 3, 2001: Introduced. Referred to
program under the Trade Act of 1974, and forCommittee 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)


iki/CRS-RL31070
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