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H.R. 4445 (ih) To exempt from reciprocal compensation requirements telecommunications traffic to the Internet. [Introduced in House] ...


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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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