19 U.S.C. § 3803 — Trade agreements authority

Page 917 TITLE 19—CUSTOMS DUTIES § 3803 timely basis with, and keep fully apprised of the negotiations, the Congressional Oversight Group convened under section 3807 of this title and all committees of the House of Represent- atives and the Senate with jurisdiction over laws that would be affected by a trade agree- ment resulting from the negotiations. (2) Consultation before agreement initialed In the course of negotiations conducted under this chapter, the United States Trade Representative shall— (A) consult closely and on a timely basis (including immediately before initialing an agreement) with, and keep fully apprised of the negotiations, the congressional advisers for trade policy and negotiations appointed under section 2211 of this title, the Com- mittee on Ways and Means of the House of Representatives, the Committee on Finance of the Senate, and the Congressional Over- sight Group convened under section 3807 of this title; and (B) with regard to any negotiations and agreement relating to agricultural trade, also consult closely and on a timely basis (including immediately before initialing an agreement) with, and keep fully apprised of the negotiations, the Committee on Agri- culture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate. (e) Adherence to obligations under Uruguay Round Agreements In determining whether to enter into negotia- tions with a particular country, the President shall take into account the extent to which that country has implemented, or has accelerated the implementation of, its obligations under the Uruguay Round Agreements. (Pub. L. 107–210, div. B, title XXI, § 2102, Aug. 6, 2002, 116 Stat. 994; Pub. L. 108–429, title II, § 2004(a)(16), Dec. 3, 2004, 118 Stat. 2591.) Editorial Notes REFERENCES IN TEXT Executive Order 13141, referred to in subsec. (c)(4) and (5), is set out as a note under section 2112 of this title. This chapter, referred to in subsec. (c)(8), was in the original ‘‘this title’’, meaning title XXI of Pub. L. 107–210, div. B, Aug. 6, 2002, 116 Stat. 993, which enacted this chapter and amended sections 2151 to 2155, 2191, and 2212 of this title. For complete classification of title XXI to the Code, see Tables. AMENDMENTS 2004—Subsec. (c)(8). Pub. L. 108–429, § 2004(a)(16)(A), substituted ‘‘this chapter’’ for ‘‘this Act’’. Subsec. (c)(12). Pub. L. 108–429, § 2004(a)(16)(B), sub- stituted ‘‘government is engaged’’ for ‘‘government en- gaged’’. Executive Documents DELEGATION OF FUNCTIONS For delegation of functions of President under this section, see section 1 of Ex. Ord. No. 13277, Nov. 19, 2002, 67 F.R. 70305, set out as a note under section 3801 of this title. § 3803. Trade agreements authority (a) Agreements regarding tariff barriers (1) In general Whenever the President determines that one or more existing duties or other import re- strictions of any foreign country or the United States are unduly burdening and restricting the foreign trade of the United States and that the purposes, policies, priorities, and objec- tives of this chapter will be promoted thereby, the President— (A) may enter into trade agreements with foreign countries before— (i) July 1, 2005; or (ii) July 1, 2007, if trade authorities pro- cedures are extended under subsection (c); and (B) may, subject to paragraphs (2) and (3), proclaim— (i) such modification or continuance of any existing duty, (ii) such continuance of existing duty- free or excise treatment, or (iii) such additional duties, as the President determines to be required or appropriate to carry out any such trade agreement. The President shall notify the Congress of the President’s intention to enter into an agree- ment under this subsection. (2) Limitations No proclamation may be made under para- graph (1) that— (A) reduces any rate of duty (other than a rate of duty that does not exceed 5 percent ad valorem on August 6, 2002) to a rate of duty which is less than 50 percent of the rate of such duty that applies on August 6, 2002; (B) reduces the rate of duty below that ap- plicable under the Uruguay Round Agree- ments, on any import sensitive agricultural product; or (C) increases any rate of duty above the rate that applied on August 6, 2002. (3) Aggregate reduction; exemption from stag- ing (A) Aggregate reduction Except as provided in subparagraph (B), the aggregate reduction in the rate of duty on any article which is in effect on any day pursuant to a trade agreement entered into under paragraph (1) shall not exceed the ag- gregate reduction which would have been in effect on such day if— (i) a reduction of 3 percent ad valorem or a reduction of one-tenth of the total reduc- tion, whichever is greater, had taken ef- fect on the effective date of the first reduc- tion proclaimed under paragraph (1) to carry out such agreement with respect to such article; and (ii) a reduction equal to the amount ap- plicable under clause (i) had taken effect at 1-year intervals after the effective date of such first reduction. (B) Exemption from staging No staging is required under subparagraph (A) with respect to a duty reduction that is Page 918 TITLE 19—CUSTOMS DUTIES § 3803 proclaimed under paragraph (1) for an article of a kind that is not produced in the United States. The United States International Trade Commission shall advise the President of the identity of articles that may be ex- empted from staging under this subpara- graph. (4) Rounding If the President determines that such action will simplify the computation of reductions under paragraph (3), the President may round an annual reduction by an amount equal to the lesser of— (A) the difference between the reduction without regard to this paragraph and the next lower whole number; or (B) one-half of 1 percent ad valorem. (5) Other limitations A rate of duty reduction that may not be proclaimed by reason of paragraph (2) may take effect only if a provision authorizing such reduction is included within an imple- menting bill provided for under section 3805 of this title and that bill is enacted into law. (6) Other tariff modifications Notwithstanding paragraphs (1)(B), (2)(A), (2)(C), and (3) through (5), and subject to the consultation and layover requirements of sec- tion 115 of the Uruguay Round Agreements Act [19 U.S.C. 3524], the President may pro- claim the modification of any duty or staged rate reduction of any duty set forth in Sched- ule XX, as defined in section 2(5) of that Act [19 U.S.C. 3501(5)], if the United States agrees to such modification or staged rate reduction in a negotiation for the reciprocal elimination or harmonization of duties under the auspices of the World Trade Organization. (7) Authority under Uruguay Round Agree- ments Act not affected Nothing in this subsection shall limit the authority provided to the President under sec- tion 111(b) of the Uruguay Round Agreements Act (19 U.S.C. 3521(b)). (b) Agreements regarding tariff and nontariff barriers (1) In general (A) Whenever the President determines that— (i) one or more existing duties or any other import restriction of any foreign country or the United States or any other barrier to, or other distortion of, international trade un- duly burdens or restricts the foreign trade of the United States or adversely affects the United States economy, or (ii) the imposition of any such barrier or distortion is likely to result in such a bur- den, restriction, or effect, and that the purposes, policies, priorities, and objectives of this chapter will be promoted thereby, the President may enter into a trade agreement described in subparagraph (B) dur- ing the period described in subparagraph (C). (B) The President may enter into a trade agreement under subparagraph (A) with for- eign countries providing for— (i) the reduction or elimination of a duty, restriction, barrier, or other distortion de- scribed in subparagraph (A); or (ii) the prohibition of, or limitation on the imposition of, such barrier or other distor- tion. (C) The President may enter into a trade agreement under this paragraph before— (i) July 1, 2005; or (ii) July 1, 2007, if trade authorities proce- dures are extended under subsection (c). (2) Conditions A trade agreement may be entered into under this subsection only if such agreement makes progress in meeting the applicable ob- jectives described in section 3802(a) and (b) of this title and the President satisfies the condi- tions set forth in section 3804 of this title. (3) Bills qualifying for trade authorities proce- dures (A) The provisions of section 2191 of this title (in this chapter referred to as ‘‘trade au- thorities procedures’’) apply to a bill of either House of Congress which contains provisions described in subparagraph (B) to the same ex- tent as such section 2191 of this title applies to implementing bills under that section. A bill to which this paragraph applies shall hereafter in this chapter be referred to as an ‘‘imple- menting bill’’. (B) The provisions referred to in subpara- graph (A) are— (i) a provision approving a trade agree- ment entered into under this subsection and approving the statement of administrative action, if any, proposed to implement such trade agreement; and (ii) if changes in existing laws or new stat- utory authority are required to implement such trade agreement or agreements, provi- sions, necessary or appropriate to imple- ment such trade agreement or agreements, either repealing or amending existing laws or providing new statutory authority. (c) Extension disapproval process for Congres- sional trade authorities procedures (1) In general Except as provided in section 3805(b) of this title— (A) the trade authorities procedures apply to implementing bills submitted with re- spect to trade agreements entered into under subsection (b) before July 1, 2005; and (B) the trade authorities procedures shall be extended to implementing bills submitted with respect to trade agreements entered into under subsection (b) after June 30, 2005, and before July 1, 2007, if (and only if)— (i) the President requests such extension under paragraph (2); and (ii) neither House of the Congress adopts an extension disapproval resolution under paragraph (5) before July 1, 2005. (2) Report to Congress by the President If the President is of the opinion that the trade authorities procedures should be ex- tended to implementing bills described in paragraph (1)(B), the President shall submit to Page 919 TITLE 19—CUSTOMS DUTIES § 3803 the Congress, not later than April 1, 2005, a written report that contains a request for such extension, together with— (A) a description of all trade agreements that have been negotiated under subsection (b) and the anticipated schedule for submit- ting such agreements to the Congress for ap- proval; (B) a description of the progress that has been made in negotiations to achieve the purposes, policies, priorities, and objectives of this chapter, and a statement that such progress justifies the continuation of nego- tiations; and (C) a statement of the reasons why the ex- tension is needed to complete the negotia- tions. (3) Other reports to Congress (A) Report by the Advisory Committee The President shall promptly inform the Advisory Committee for Trade Policy and Negotiations established under section 2155 of this title of the President’s decision to submit a report to the Congress under para- graph (2). The Advisory Committee shall submit to the Congress as soon as prac- ticable, but not later than June 1, 2005, a written report that contains— (i) its views regarding the progress that has been made in negotiations to achieve the purposes, policies, priorities, and ob- jectives of this chapter; and (ii) a statement of its views, and the rea- sons therefor, regarding whether the ex- tension requested under paragraph (2) should be approved or disapproved. (B) Report by ITC The President shall promptly inform the International Trade Commission of the President’s decision to submit a report to the Congress under paragraph (2). The Inter- national Trade Commission shall submit to the Congress as soon as practicable, but not later than June 1, 2005, a written report that contains a review and analysis of the eco- nomic impact on the United States of all trade agreements implemented between Au- gust 6, 2002, and the date on which the Presi- dent decides to seek an extension requested under paragraph (2). (4) Status of reports The reports submitted to the Congress under paragraphs (2) and (3), or any portion of such reports, may be classified to the extent the President determines appropriate. (5) Extension disapproval resolutions (A) For purposes of paragraph (1), the term ‘‘extension disapproval resolution’’ means a resolution of either House of the Congress, the sole matter after the resolving clause of which is as follows: ‘‘That the ll disapproves the request of the President for the extension, under section 2103(c)(1)(B)(i) of the Bipartisan Trade Promotion Authority Act of 2002, of the trade authorities procedures under that Act to any implementing bill submitted with respect to any trade agreement entered into under section 2103(b) of that Act after June 30, 2005.’’, with the blank space being filled with the name of the resolving House of the Congress. (B) Extension disapproval resolutions— (i) may be introduced in either House of the Congress by any member of such House; and (ii) shall be referred, in the House of Rep- resentatives, to the Committee on Ways and Means and, in addition, to the Committee on Rules. (C) The provisions of section 2192(d) and (e) of this title (relating to the floor consider- ation of certain resolutions in the House and Senate) apply to extension disapproval resolu- tions. (D) It is not in order for— (i) the Senate to consider any extension disapproval resolution not reported by the Committee on Finance; (ii) the House of Representatives to con- sider any extension disapproval resolution not reported by the Committee on Ways and Means and, in addition, by the Committee on Rules; or (iii) either House of the Congress to con- sider an extension disapproval resolution after June 30, 2005. (d) Commencement of negotiations In order to contribute to the continued eco- nomic expansion of the United States, the Presi- dent shall commence negotiations covering tar- iff and nontariff barriers affecting any industry, product, or service sector, and expand existing sectoral agreements to countries that are not parties to those agreements, in cases where the President determines that such negotiations are feasible and timely and would benefit the United States. Such sectors include agriculture, com- mercial services, intellectual property rights, industrial and capital goods, government pro- curement, information technology products, en- vironmental technology and services, medical equipment and services, civil aircraft, and infra- structure products. In so doing, the President shall take into account all of the principal nego- tiating objectives set forth in section 3802(b) of this title. (Pub. L. 107–210, div. B, title XXI, § 2103, Aug. 6, 2002, 116 Stat. 1004; Pub. L. 108–429, title II, § 2004(a)(17), Dec. 3, 2004, 118 Stat. 2591.) Editorial Notes REFERENCES IN TEXT The Bipartisan Trade Promotion Authority Act of 2002, referred to in subsec. (c)(5)(A), is title XXI of Pub. L. 107–210, div. B, Aug. 6, 2002, 116 Stat. 993, which is classified principally to this chapter. Section 2103 of the Act is classified to this section. For complete clas- sification of title XXI to the Code, see section 3801(a) of this title and Tables. AMENDMENTS 2004—Subsec. (a)(1)(A). Pub. L. 108–429, § 2004(a)(17)(A), substituted ‘‘July 1’’ for ‘‘June 1’’ in two places. Subsec. (b)(1)(C). Pub. L. 108–429, § 2004(a)(17)(B), sub- stituted ‘‘July 1’’ for ‘‘June 1’’ in two places. Subsec. (c)(1)(B)(ii). Pub. L. 108–429, § 2004(a)(17)(C)(i), substituted ‘‘July 1’’ for ‘‘June 1’’. Subsec. (c)(2). Pub. L. 108–429, § 2004(a)(17)(C)(ii), sub- stituted ‘‘April 1’’ for ‘‘March 1’’ in introductory provi- sions. Page 920 TITLE 19—CUSTOMS DUTIES § 3804 Subsec. (c)(3). Pub. L. 108–429, § 2004(a)(17)(C)(iii), sub- stituted ‘‘June 1’’ for ‘‘May 1’’ in two places. Executive Documents DELEGATION OF FUNCTIONS For delegation of functions of President under this section, see section 1 of Ex. Ord. No. 13277, Nov. 19, 2002, 67 F.R. 70305, set out as a note under section 3801 of this title. § 3804. Consultations and assessment (a) Notice and consultation before negotiation The President, with respect to any agreement that is subject to the provisions of section 3803(b) of this title, shall— (1) provide, at least 90 calendar days before initiating negotiations, written notice to the Congress of the President’s intention to enter into the negotiations and set forth therein the date the President intends to initiate such ne- gotiations, the specific United States objec- tives for the negotiations, and whether the President intends to seek an agreement, or changes to an existing agreement; (2) before and after submission of the notice, consult regarding the negotiations with the Committee on Finance of the Senate and the Committee on Ways and Means of the House of Representatives, such other committees of the House and Senate as the President deems ap- propriate, and the Congressional Oversight group convened under section 3807 of this title; and (3) upon the request of a majority of the members of the Congressional Oversight Group under section 3807(c) of this title, meet with the Congressional Oversight Group before initiating the negotiations or at any other time concerning the negotiations. (b) Negotiations regarding agriculture (1) In general Before initiating or continuing negotiations the subject matter of which is directly related to the subject matter under section 3802(b)(10)(A)(i) of this title with any country, the President shall assess whether United States tariffs on agricultural products that were bound under the Uruguay Round Agree- ments are lower than the tariffs bound by that country. In addition, the President shall con- sider whether the tariff levels bound and ap- plied throughout the world with respect to im- ports from the United States are higher than United States tariffs and whether the negotia- tion provides an opportunity to address any such disparity. The President shall consult with the Committee on Ways and Means and the Committee on Agriculture of the House of Representatives and the Committee on Fi- nance and the Committee on Agriculture, Nu- trition, and Forestry of the Senate concerning the results of the assessment, whether it is ap- propriate for the United States to agree to fur- ther tariff reductions based on the conclusions reached in the assessment, and how all appli- cable negotiating objectives will be met. (2) Special consultations on import sensitive products (A) Before initiating negotiations with re- gard to agriculture, and, with respect to the Free Trade Area for the Americas and negotia- tions with regard to agriculture under the aus- pices of the World Trade Organization, as soon as practicable after August 6, 2002, the United States Trade Representative shall— (i) identify those agricultural products subject to tariff-rate quotas on August 6, 2002, and agricultural products subject to tariff reductions by the United States as a result of the Uruguay Round Agreements, for which the rate of duty was reduced on January 1, 1995, to a rate which was not less than 97.5 percent of the rate of duty that ap- plied to such article on December 31, 1994; (ii) consult with the Committee on Ways and Means and the Committee on Agri- culture of the House of Representatives and the Committee on Finance and the Com- mittee on Agriculture, Nutrition, and For- estry of the Senate concerning— (I) whether any further tariff reductions on the products identified under clause (i) should be appropriate, taking into account the impact of any such tariff reduction on the United States industry producing the product concerned; (II) whether the products so identified face unjustified sanitary or phytosanitary restrictions, including those not based on scientific principles in contravention of the Uruguay Round Agreements; and (III) whether the countries participating in the negotiations maintain export sub- sidies or other programs, policies, or prac- tices that distort world trade in such prod- ucts and the impact of such programs, policies, and practices on United States producers of the products; (iii) request that the International Trade Commission prepare an assessment of the probable economic effects of any such tariff reduction on the United States industry pro- ducing the product concerned and on the United States economy as a whole; and (iv) upon complying with clauses (i), (ii), and (iii), notify the Committee on Ways and Means and the Committee on Agriculture of the House of Representatives and the Com- mittee on Finance and the Committee on Agriculture, Nutrition, and Forestry of the Senate of those products identified under clause (i) for which the Trade Representa- tive intends to seek tariff liberalization in the negotiations and the reasons for seeking such tariff liberalization. (B) If, after negotiations described in sub- paragraph (A) are commenced— (i) the United States Trade Representative identifies any additional agricultural prod- uct described in subparagraph (A)(i) for tar- iff reductions which were not the subject of a notification under subparagraph (A)(iv), or (ii) any additional agricultural product de- scribed in subparagraph (A)(i) is the subject of a request for tariff reductions by a party to the negotiations, the Trade Representative shall, as soon as practicable, notify the committees referred to in subparagraph (A)(iv) of those products and the reasons for seeking such tariff reductions.