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Union Calendar No. 347
106th CONGRESS
2d Session
H. R. 4444
[Report No. 106-632]
To authorize extension of nondiscriminatory treatment (normal trade
relations treatment) to the People's Republic of China.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
May 15, 2000
Mr. Archer (for himself, Mr. Crane, Mr. Matsui, and Mr. Tanner) (all by
request) introduced the following bill; which was referred to the
Committee on Ways and Means
May 22, 2000
Reported with an amendment, committed to the Committee of the Whole
House on the State of the Union, and ordered to be printed
[Strike out all after the enacting clause and insert the part printed
in italic]
[For text of introduced bill, see copy of bill as introduced on May 15,
2000]
_______________________________________________________________________
A BILL
To authorize extension of nondiscriminatory treatment (normal trade
relations treatment) to the People's Republic of China.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. TERMINATION OF APPLICATION OF CHAPTER 1 OF TITLE IV OF THE
TRADE ACT OF 1974 TO THE PEOPLE'S REPUBLIC OF CHINA.
(a) Presidential Determinations and Extension of Nondiscriminatory
Treatment.--Notwithstanding any provision of chapter 1 of title IV of
the Trade Act of 1974 (19 U.S.C. 2431 et seq.), as designated by
section 3(a)(2) of this Act, the President may--
(1) determine that such chapter should no longer apply to
the People's Republic of China; and
(2) after making a determination under paragraph (1) with
respect to the People's Republic of China, proclaim the
extension of nondiscriminatory treatment (normal trade
relations treatment) to the products of that country.
(b) Accession of the People's Republic of China to the World Trade
Organization.--Prior to making the determination provided for in
subsection (a)(1) and pursuant to the provisions of section 122 of the
Uruguay Round Agreements Act (19 U.S.C. 3532), the President shall
transmit a report to Congress certifying that the terms and conditions
for the accession of the People's Republic of China to the World Trade
Organization are at least equivalent to those agreed between the United
States and the People's Republic of China on November 15, 1999.
SEC. 2. EFFECTIVE DATE.
(a) Effective Date of Nondiscriminatory Treatment.--The extension
of nondiscriminatory treatment pursuant to section 1(a)(1) shall be
effective no earlier than the effective date of the accession of the
People's Republic of China to the World Trade Organization.
(b) Termination of Applicability of Title IV.--On and after the
effective date under subsection (a) of the extension of
nondiscriminatory treatment to the products of the People's Republic of
China, chapter 1 of title IV of the Trade Act of 1974 (as designated by
section 3(a)(2) of this Act) shall cease to apply to that country.
SEC. 3. RELIEF FROM MARKET DISRUPTION.
(a) In General.--Title IV of the Trade Act of 1974 (19 U.S.C. 2431
et seq.) is amended--
(1) in the title heading, by striking ``CURRENTLY'';
(2) by inserting before section 401 the following:
``CHAPTER 1--TRADE RELATIONS WITH CERTAIN COUNTRIES'';
and
(3) by adding at the end the following new chapter:
``CHAPTER 2--RELIEF FROM MARKET DISRUPTION TO INDUSTRIES AND DIVERSION
OF TRADE TO THE UNITED STATES MARKET
``SEC. 421. ACTION TO ADDRESS MARKET DISRUPTION.
``(a) Presidential Action.--If a product of the People's Republic
of China is being imported into the United States in such increased
quantities or under such conditions as to cause or threaten to cause
market disruption to the domestic producers of a like or directly
competitive product, the President shall, in accordance with the
provisions of this section, proclaim increased duties or other import
restrictions with respect to such product, to the extent and for such
period as the President considers necessary to prevent or remedy the
market disruption.
``(b) Initiation of an Investigation.--(1) Upon the filing of a
petition by an entity described in section 202(a) of the Trade Act of
1974 (19 U.S.C. 2252(a)), upon the request of the President or the
United States Trade Representative (in this subtitle referred to as the
`Trade Representative'), upon resolution of either the Committee on
Ways and Means of the House of Representatives, or the Committee on
Finance of the Senate (in this subtitle referred to as the
`Committees') or on its own motion, the United States International
Trade Commission (in this subtitle referred to as the `Commission')
shall promptly make an investigation to determine whether products of
the People's Republic of China are being imported into the United
States in such increased quantities or under such conditions as to
cause or threaten to cause market disruption to the domestic producers
of like or directly competitive products.
``(2) The limitations on investigations set forth in section
202(h)(1) of the Trade Act of 1974 (19 U.S.C. 2252(h)(1)) shall apply
to investigations conducted under this section.
``(3) The provisions of subsections (a)(8) and (i) of section 202
of the Trade Act of 1974 (19 U.S.C. 2252(a)(8) and (i)), relating to
treatment of confidential business information, shall apply to
investigations conducted under this section.
``(4) Whenever a petition is filed, or a request or resolution is
received, under this subsection, the Commission shall transmit a copy
thereof to the President, the Trade Representative, the Committee on
Ways and Means of the House of Representatives, and the Committee of
Finance of the Senate, except that in the case of confidential business
information, the copy may include only nonconfidential summaries of
such information.
``(5) The Commission shall publish notice of the commencement of
any proceeding under this subsection in the Federal Register and shall,
within a reasonable time thereafter, hold public hearings at which the
Commission shall afford interested parties an opportunity to be
present, to present evidence, to respond to the presentations of other
parties, and otherwise to be heard.
``(c) Market Disruption.--(1) For purposes of this section, market
disruption exists whenever imports of an article like or directly
competitive with an article produced by a domestic industry are
increasing rapidly, either absolutely or relatively, so as to be a
significant cause of material injury, or threat of material injury, to
the domestic industry.
``(2) For purposes of paragraph (1), the term `significant cause'
refers to a cause which contributes significantly to the material
injury of the domestic industry, but need not be equal to or greater
than any other cause.
``(d) Factors in Determination.--In determining whether market
disruption exists, the Commission shall consider objective factors,
including--
``(1) the volume of imports of the product which is the
subject of the investigation;
``(2) the effect of imports of such product on prices in
the United States for like or directly competitive articles;
and
``(3) the effect of imports of such product on the domestic
industry producing like or directly competitive articles.
The presence or absence of any factor under paragraph (1), (2), or (3)
is not necessarily dispositive of whether market disruption exists.
``(e) Time for Commission Determinations.--The Commission shall
make and transmit to the President and the Trade Representative its
determination under subsection (b)(1) at the earliest practicable time,
but in no case later than 60 days (or 90 days in the case of a petition
requesting relief under subsection (i)) after the date on which the
petition is filed, the request or resolution is received, or the motion
is adopted, under subsection (b). If the Commissioners voting are
equally divided with respect to its determination, then the
determination agreed upon by either group of Commissioners may be
considered by the President and the Trade Representative as the
determination of the Commission.
``(f) Recommendations of Commission on Proposed Remedies.--If the
Commission makes an affirmative determination under subsection (b), or
a determination which the President or the Trade Representative may
consider as affirmative under subsection (e), the Commission shall
propose the amount of increase in, or imposition of, any duty or other
import restrictions necessary to prevent or remedy the market
disruption. Only those members of the Commission who agreed to the
affirmative determination under subsection (b) are eligible to vote on
the proposed action to prevent or remedy market disruption. Members of
the Commission who did not agree to the affirmative determination may
submit, in the report required under subsection (g), separate views
regarding what action, if any, should be taken to prevent or remedy
market disruption.
``(g) Report by Commission.--(1) Not later than 20 days after a
determination under subsection (b) is made, the Commission shall submit
a report to the President and the Trade Representative.
``(2) The Commission shall include in the report required under
paragraph (1) the following:
``(A) The determination made under subsection (b) and an
explanation of the basis for the determination.
``(B) If the determination under subsection (b) is
affirmative, or may be considered by the President or the Trade
Representative as affirmative under subsection (e), the
recommendations of the Commission on proposed remedies under
subsection (f) and an explanation of the basis for each
recommendation.
``(C) Any dissenting or separate views by members of the
Commission regarding the determination and any recommendation
referred to in subparagraphs (A) and (B).
``(D) A description of--
``(i) the short- and long-term effects that
implementation of the action recommended under
subsection (f) is likely to have on the petitioning
domestic industry, on other domestic industries, and on
consumers; and
``(ii) the short- and long-term effects of not
taking the recommended action on the petitioning
domestic industry, its workers, and the communities
where production facilities of such industry are
located, and on other domestic industries.
``(3) The Commission, after submitting a report to the President
under paragraph (1), shall promptly make it available to the public
(but shall not include confidential business information) and cause a
summary thereof to be published in the Federal Register.
``(h) Opportunity To Present Views and Evidence on Proposed Measure
and Recommendation to the President.--(1) Within 20 days after receipt
of the Commission's report under subsection (g) (or 15 days in the case
of an affirmative preliminary determination under subsection
(i)(1)(B)), the Trade Representative shall publish in the Federal
Register notice of any measure proposed by the Trade Representative to
be taken pursuant to subsection (a) and of the opportunity, including a
public hearing, if requested, for importers, exporters, and other
interested parties to submit their views and evidence on the
appropriateness of the proposed measure and whether it would be in the
public interest.
``(2) Within 55 days after receipt of the report under subsection
(g) (or 35 days in the case of an affirmative preliminary determination
under subsection (i)(1)(B)), the Trade Representative, taking into
account the views and evidence received under paragraph (1) on the
measure proposed by the Trade Representative, shall make a
recommendation to the President concerning what action, if any, to take
to prevent or remedy the market disruption.
``(i) Critical Circumstances.--(1) When a petition filed under
subsection (b) alleges that critical circumstances exist and requests
that provisional relief be provided under this subsection with respect
to the product identified in the petition, the Commission shall, not
later than 45 days after the petition containing the request is filed--
``(A) determine whether delay in taking action under this
section would cause damage to the relevant domestic industry
which would be difficult to repair; and
``(B) if the determination under subparagraph (A) is
affirmative, make a preliminary determination of whether
imports of the product which is the subject of the
investigation have caused or threatened to cause market
disruption.
If the Commissioners voting are equally divided with respect to either
of its determinations, then the determination agreed upon by either
group of Commissioners may be considered by the President and the Trade
Representative as the determination of the Commission.
``(2) On the date on which the Commission completes its
determinations under paragraph (1), the Commission shall transmit a
report on the determinations to the President and the Trade
Representative, including the reasons for its determinations. If the
determinations under paragraph (1) are affirmative, or may be
considered by the President or the Trade Representative as affirmative
under paragraph (1), the Commission shall include in its report its
recommendations on proposed provisional measures to be taken to prevent
or remedy the market disruption. Only those members of the Commission
who agreed to the affirmative determinations under paragraph (1) are
eligible to vote on the proposed provisional measures to prevent or
remedy market disruption. Members of the Commission who did not agree
to the affirmative determinations may submit, in the report, dissenting
or separate views regarding the determination and any recommendation of
provisional measures referred to in this paragraph.
``(3) If the determinations under paragraph (1) are affirmative, or
may be considered by the President or the Trade Representative as
affirmative under paragraph (1), the Trade Representative shall, within
10 days after receipt of the Commission's report, determine the amount
or extent of provisional relief that is necessary to prevent or remedy
the market disruption and shall provide a recommendation to the
President on what provisional measures, if any, to take.
``(4)(A) The President shall determine whether to provide
provisional relief and proclaim such relief, if any, within 10 days
after receipt of the recommendation from the Trade Representative.
``(B) Such relief may take the form of--
``(i) the imposition of or increase in any duty;
``(ii) any modification, or imposition of any quantitative
restriction on the importation of an article into the United
States; or
``(iii) any combination of actions under clauses (i) and
(ii).
``(C) Any provisional action proclaimed by the President pursuant
to a determination of critical circumstances shall remain in effect not
more than 200 days.
``(D) Provisional relief shall cease to apply upon the effective
date of relief proclaimed under subsection (a), upon a decision by the
President not to provide such relief, or upon a negative determination
by the Commission under subsection (b).
``(j) Agreements With the People's Republic of China.--(1) The
Trade Representative is authorized to enter into agreements for the
People's Republic of China to take such action as necessary to prevent
or remedy market disruption, and should seek to conclude such
agreements before the expiration of the 60-day consultation period
provided for under the product-specific safeguard provision of the
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