Senate Bill Introduced to Strengthen China and Other Trade Enforcement Tools
On August 1, 2007, Senators Baucus, Hatch, and Stabenow introduced S. 1919, the Trade Enforcement Act of 2007. According to a Senate Finance Committee press release, S. 1919 would create tools to ensure proper enforcement of international trade agreements and domestic trade remedy laws, devote more resources to identify and remove trade barriers, institute greater oversight of trade enforcement, and clarify procedures for detecting and prosecuting violations of U.S. trade laws.
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According to Reuters, S. 1919's sponsors told reporters that they hope their bill will reduce some of the anxiety in Congress on trade and help clear the way for votes on pending free trade agreements (FTAs).
After introduction, S. 1919 was referred to the Senate Finance Committee.
Highlights of Senate Bill as Introduced
The press release notes the following highlights of S. 1919 (partial list):
President's discretion to decline relief from China imports. The bill would require the President to proclaim any import relief that the International Trade Commission recommends in a China safeguard investigation under Section 421 of the Trade Act of 1974. The President may decline to provide such relief only in extraordinary cases and only if the President determines that the relief would seriously harm U.S. national security or would have an adverse impact on the U.S. economy that clearly and significantly outweighs the benefits. If the President declines to provide such relief recommended by the ITC pursuant to the economic exception described above, such relief would nonetheless take effect upon the enactment of a joint Congressional resolution disapproving the President's action.
(Section 421 was added to the Trade Act of 1974 by the U.S.-China Relations Act of 2000, in order to implement a transitional bilateral safeguard provision relating to China's accession to the World Trade Organization (WTO). Although the President has had the opportunity to implement Section 421 restrictions against China, he has so far declined to do so.)
Commerce's authority on CV duties for NMEs. The bill would amend Section 701(a)(1) of the Tariff Act of 1930 to clarify that the Commerce Department has the authority to apply countervailing (CV) duties to nonmarket economies (NMEs) like China.
ITC injury determinations. The bill would override the Federal Circuit's Bratsk decision by providing that the ITC must make its material injury determination in antidumping and countervailing duty cases without regard to whether other imports will likely replace imports from the country under investigation.
Annual report/action on most significant market access barriers. The bill would require the U.S. Trade Representative to provide an annual report to Congress identifying the most significant market access barriers to U.S. companies abroad and to take enforcement action to resolve them.
Committee-directed USTR identification of priority trade practices. By majority vote, the Senate Finance Committee or the House Ways and Means Committee would be able to require the USTR to identify a specific priority foreign country trade practice in its annual report.
Expert report before U.S. changes regulations. The bill would set up a Commission of retired judges and international trade law experts to review WTO dispute settlement reports. No change would be able to be made to a federal regulation to comply with an adverse WTO dispute settlement report until Congress received the Commission's report on its review.
New Chief Enforcement Officer. The bill would create a Senate-confirmed Chief Enforcement Officer to investigate and prosecute trade enforcement cases. It would also establish an interagency Trade Enforcement Working Group to advise the USTR and authorize $5 million for the USTR's enforcement responsibilities.
Increased IPR expertise at the ITC. The bill would authorize the ITC to appoint hearing officers, rather than administrative law judges, to take evidence and make initial decisions in intellectual property investigations under Section 337 of the Tariff Act of 1930. (Unlike the current ALJs, the hearing officers would be required to have technical expertise and experience in intellectual property rights (IPR) law.)
Senate Finance Committee press release (dated 08/01/07) available at http://finance.senate.gov/press/Bpress/2007press/prb080107a.pdf.
Senate Finance Committee's section-by-section analysis of S. 1919 available at http://finance.senate.gov/press/Bpress/2007press/prb080107c.pdf.
Reuters article (dated 08/01/07) available at http://www.reuters.com/article/politicsNews/idUSN0136072320070801.