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S. 1258 (rs) To authorize funds for the payment of salaries and expenses of the Patent and Trademark Office, and for other purposes. [Reported in Senate] ...


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108th CONGRESS
  1st Session
                                S. 1258

To improve United States litigation efforts at the WTO, establish a WTO 
Dispute Settlement Review Commission, promote reform of the WTO dispute 
              settlement process, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             June 12, 2003

   Mr. Bayh introduced the following bill; which was read twice and 
                  referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
To improve United States litigation efforts at the WTO, establish a WTO 
Dispute Settlement Review Commission, promote reform of the WTO dispute 
              settlement process, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) In General.--This Act may be cited as the ``Stand With American 
Workers Act''.
    (b) Table of Contents.--

Sec. 1. Short title; table of contents.
Sec. 2. Findings.
          TITLE I--ROLE OF UNITED STATES TRADE REPRESENTATIVE

Sec. 101. Role of USTR.
Sec. 102. Deputy USTR for litigation.
Sec. 103. Amendments to URAA.
    TITLE II--WTO DISPUTE SETTLEMENT REVIEW COMMISSION; NEGOTIATING 
   OBJECTIVES OF THE UNITED STATES FOR REFORM OF DISPUTE SETTLEMENT 
                              PROCEEDINGS

                     Subtitle A--General Provisions

Sec. 201. Definitions.
          Subtitle B--WTO Dispute Settlement Review Commission

Sec. 211. Establishment of Commission.
Sec. 212. Duties of the Commission.
Sec. 213. Powers of the Commission.
Sec. 214. Review of dispute settlement procedures.
Sec. 215. Participation in WTO panel proceedings.
 Subtitle C--Negotiating Objectives of the United States and Reform of 
                     Dispute Settlement Proceedings

Sec. 221. Reform of dispute settlement proceedings.
Sec. 222. Ethics requirements.

SEC. 2. FINDINGS.

    Congress finds the following:
            (1) The United States joined the World Trade Organization 
        (in this Act referred to as the ``WTO'') as an original member 
        with the goal of creating an improved global trading system 
        that would provide mutual trade benefits through more open 
        foreign markets.
            (2) Congress passed the Uruguay Round Agreements Act based 
        on its understanding that existing United States trade remedies 
        would be consistent with WTO agreements. Effective trade remedy 
        rules are a cornerstone of the multilateral trading system and 
        an essential bulwark for American industries against unfair 
        trade and damaging import surges.
            (3) Since the WTO's founding, foreign governments have used 
        the WTO's dispute settlement system to launch an unanticipated 
        and unwarranted series of attacks against United States trade 
        laws, particularly the antidumping, countervailing duty, and 
        safeguard laws.
            (4) In the overwhelming number of such cases, WTO panel and 
        Appellate Body rulings have gone against the United States. 
        These decisions are often based upon obligations that do not 
        exist under existing WTO agreements.
            (5) The one-sided record in dispute settlement proceedings 
        is particularly disturbing because the right to act against 
        dumped, subsidized, and surging imports is a fundamental part 
        of the multilateral trade regime, having been codified in 
        Articles VI and XIX of the General Agreement on Tariffs and 
        Trade 1947.
            (6) To address this problem, the United States must ensure 
        that it is aggressively defending United States trade remedy 
        laws at the WTO and promoting a WTO dispute settlement system 
        that both acts within its limitations under existing WTO 
        agreements and operates in a more fair and transparent manner.

          TITLE I--ROLE OF UNITED STATES TRADE REPRESENTATIVE

SEC. 101. ROLE OF USTR.

    (a) In General.--Chapter 4 of title I of the Trade Act of 1974 (19 
U.S.C. 2171) is amended by inserting after section 141, the following 
new section:

``SEC. 142. SPECIAL PROVISIONS RELATING TO THE WORLD TRADE 
              ORGANIZATION.

    ``(a) Definitions.--In this chapter:
            ``(1) Adverse finding.--The term `adverse finding' means--
                    ``(A) in a panel or Appellate Body proceeding 
                initiated against the United States, a finding by the 
                panel or the Appellate Body that any law or regulation 
                of, or application thereof by, the United States is 
                inconsistent with the obligations of the United States 
                under a Uruguay Round Agreement (or nullifies or 
                impairs benefits accruing to a WTO member under such an 
                Agreement); or
                    ``(B) in a panel or Appellate Body proceeding in 
                which the United States is a complaining party, any 
                finding by the panel or the Appellate Body that a 
                measure of the party complained against is not 
                inconsistent with that party's obligations under a 
                Uruguay Round Agreement (or does not nullify or impair 
                benefits accruing to the United States under such an 
                Agreement).
            ``(2) Appellate body, etc.--The terms `Appellate Body', 
        `dispute settlement panel', and `Dispute Settlement Body', have 
        the meanings given those terms in section 121 of the Uruguay 
        Round Agreements Act (19 U.S.C. 3531).
            ``(3) Appropriate congressional committees.--The term 
        `appropriate congressional committees' means the Committee on 
        Finance of the Senate and the Committee on Ways and Means of 
        the House of Representatives.
            ``(4) Dispute settlement body.--The term `Dispute 
        Settlement Body' means the Dispute Settlement Body established 
        pursuant to the Dispute Settlement Understanding.
            ``(5) Dispute settlement panel; panel.--The terms `dispute 
        settlement panel' and `panel' mean a panel established pursuant 
        to Article 6 of the Dispute Settlement Understanding.
            ``(6) Dispute settlement proceeding.--The term `dispute 
        settlement proceeding' means any procedure initiated, or 
decision rendered, pursuant to the Dispute Settlement Understanding.
            ``(7) Dispute settlement understanding.--The term `Dispute 
        Settlement Understanding' means the Understanding on Rules and 
        Procedures Governing the Settlement of Disputes referred to in 
        section 101(d)(16) of the Uruguay Round Agreements Act.
            ``(8) Terms of reference.--The term `terms of reference' 
        has the meaning given such term in the Dispute Settlement 
        Understanding.
            ``(9) Uruguay round agreement.--The term `Uruguay Round 
        Agreement' means any of the Agreements described in section 
        101(d) of the Uruguay Round Agreements Act.
            ``(10) WTO agreement.--The term `WTO Agreement' means the 
        Agreement Establishing the World Trade Organization entered 
        into on April 15, 1994.
            ``(11) WTO, etc.--The terms `WTO', `World Trade 
        Organization', and `WTO member country' have the meaning given 
        those terms in section 2 of the Uruguay Round Agreements Act 
        (19 U.S.C. 3501).
    ``(b) Responsibility of USTR.--In addition to the responsibilities 
described in section 141, the United States Trade Representative shall 
be the primary government official responsible for all dispute 
settlement proceedings before the World Trade Organization that involve 
the United States.
    ``(c) Additional Attorneys.--
            ``(1) Increase in staff.--The United States Trade 
        Representative may hire 10 additional attorneys to assist the 
        United States Trade Representative in carrying out the 
        responsibilities described in subsection (b).
            ``(2) Panel of outside attorneys.--The United States Trade 
        Representative may, pursuant to section 141(e)(2), employ 
        private attorneys who have the expertise and experience to 
        represent the United States before dispute settlement panels 
        and the Appellate Body.''.
    (b) Conforming Amendment.--The table of contents of the Trade Act 
of 1974 (19 U.S.C. 2101 et seq.) is amended by inserting after the item 
relating to section 141 the following new item:

``Sec. 142. Special provisions relating to the World Trade 
                            Organization.''.

SEC. 102. DEPUTY USTR FOR LITIGATION.

    (a) In General.--Section 141(b) of the Trade Act of 1974 (19 U.S.C. 
2171(b)) is amended by inserting after paragraph (5), the following new 
paragraph:
    ``(6) The United States Trade Representative shall designate 1 of 
the Deputy United States Trade Representatives whose sole 
responsibility shall be to oversee--
            ``(A) all dispute settlement proceedings involving the 
        United States before the World Trade Organization; and
            ``(B) any negotiations involving modifications to, or 
        amendments of, the Understanding on Rules and Procedures 
        Governing the Settlement of Disputes.''.
    (b) Conforming Amendment.--Section 141(b) of such Act is amended by 
moving paragraph (5) 2 ems to the left.

SEC. 103. AMENDMENTS TO URAA.

    (a) Maintenance of Biographical Material.--Section 123(a) of the 
Uruguay Round Agreements Act (19 U.S.C. 3533(a)) is amended--
            (1) by striking ``The President'' and inserting:
    ``(1) Review by president.--The President'';
            (2) by moving the text of paragraph (1) of section 123(a), 
        as redesignated by paragraph (1), 2 ems to the right; and
            (3) by adding at the end the following new paragraph:
            ``(2) Maintenance of roster by ustr.--The Trade 
        Representative shall maintain and make available to the public 
        a current list of WTO panelists, including persons serving on 
        the Appellate Body. The list shall include pertinent 
        biographical information on each person, including panel 
        decisions made by the person, the person's dispute settlement 
        experience, and any relevant speeches, articles, or books of 
        the person.''.
    (b) Notification Requirements.--Section 123(d) of the Uruguay Round 
Agreements Act (19 U.S.C. 3533(d)) is amended--
            (1) in the matter preceding paragraph (1), by inserting 
        ``or regulation, or practice of a department or agency of the 
        United States,'' after ``Federal or State law''; and
            (2) in paragraph (1), by inserting ``or regulation, or 
        practice of a department or agency of the United States,'' 
        after ``State or Federal law''.
    (c) Actions Upon Circulation of Reports.--Section 123(f) of the 
Uruguay Round Agreements Act (19 U.S.C. 3533(f)) is amended--
            (1) by striking ``and'' at the end of paragraph (2);
            (2) in paragraph (3), by inserting ``, before the United 
        States communicates its intentions regarding its compliance 
        with the panel or Appellate body report under Article 21(3) of 
        the Dispute Settlement Understanding,'' before ``consult 
        with'';
            (3) by striking the period at the end of paragraph (3) and 
        inserting ``; and''; and
            (4) by adding at the end the following new paragraph:
            ``(4) as part of the consultations described in paragraph 
        (3), provide the appropriate congressional committees with a 
        written analysis of the rights or obligations of the United 
        States affected by the report, as well as an analysis of 
        whether, in the opinion of the Trade Representative, the panel 
        or Appellate Body violated the standard of review or its terms 
        of reference in reaching its decision, and whether the measure 
        being challenged has any adverse trade effects for the United 
        States.''.
    (d) Requirements for Agency Action.--Section 123(g)(1)(E) of the 
Uruguay Round Agreements Act (19 U.S.C. 3533(g)(1)(E)) is amended to 
read as follows:
                    ``(E) not later than 60 days before the publication 
                required by subparagraph (C), the Trade Representative 
                has submitted to the appropriate congressional 
                committees a report and the Trade Representative and 
                the head of the relevant department or agency have 
                consulted with such committees regarding the proposed 
                content of the final rule or other modification, the 
                reasons for the rule or modification, and the advice 
                obtained under subparagraph (B) with respect to the 
                rule or modification; and''.
    (e) Consent to Appellate Body Appointments.--Section 123 of the 
Uruguay Round Agreements Act (19 U.S.C. 3533) is amended by adding at 
the end the following new subsection:
    ``(i) Congressional Consent to Appellate Body Appointments.--
            ``(1) Report to committees.--Not later than 60 days (or as 
        early as practicable) before the Dispute Settlement Body 
        considers for appointment or reappointment a person to the 
        Appellate Body, the Trade Representative shall report to the 
        appropriate congressional committees regarding the person being 
        considered for appointment or reappointment.
            ``(2) Content of report.--The report required by paragraph 
        (1) shall include information on the suitability of each person 
        being considered for appointment and the Trade Representative's 
        recommendation regarding the person. The recommendation shall 
        include an assessment of each person's ability to understand 
        and abide by the limitations imposed by the standard of review 
        and the terms of reference under which the Appellate Body must 
        decide its cases. If a person is being considered for 
        reappointment, the Trade Representative shall report on the 
        person's record on the Appellate Body, including the cases 
        handled and the decisions rendered by that person.
            ``(3) Consent by committees.--Unless a majority of the 
        members of each of the congressional committees vote in favor 
        of the appointment or reappointment of the person to the 
        Appellate Body, the Trade Representative shall oppose the 
        appointment or reappointment at the WTO.''.

    TITLE II--WTO DISPUTE SETTLEMENT REVIEW COMMISSION; NEGOTIATING 
   OBJECTIVES OF THE UNITED STATES FOR REFORM OF DISPUTE SETTLEMENT 
                              PROCEEDINGS

                     Subtitle A--General Provisions

SEC. 201. DEFINITIONS.

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