Trading System Preservation Act
This bill authorizes the President to enter into covered plurilateral trade agreements. Covered plurilateral trade agreement refers to a sector-specific agreement within the framework of the World Trade Organization (WTO) involving foreign countries or foreign territories that form a subset of the members of the WTO that does not extend benefits on a most-favored-nation basis.
Specifically, the bill requires the U.S. Trade Representative to provide a classified briefing to specified congressional committees on the feasibility and advisability of pursuing and adopting covered plurilateral trade agreements.
After the congressional briefing, the bill directs the President to initiate negotiations for a covered plurilateral trade agreement when the President determines it is in the national interest to do so.
The bill authorizes the President to enter into these agreements in specified sectors of the economy (e.g., digital services and pharmaceuticals), with such authority expiring on July 1, 2027. Further, the President may proclaim a modification or continuance of any existing duty or continuance of existing excise or duty-free treatment to carry out an agreement.
[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[S. 3708 Introduced in Senate (IS)]
<DOC>
117th CONGRESS
2d Session
S. 3708
To provide the President with authority to enter into certain
plurilateral trade agreements with benefits only applying to
signatories of those agreements, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
February 28, 2022
Mr. Portman (for himself and Mr. Coons) introduced the following bill;
which was read twice and referred to the Committee on Finance
_______________________________________________________________________
A BILL
To provide the President with authority to enter into certain
plurilateral trade agreements with benefits only applying to
signatories of those agreements, 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.
This Act may be cited as the ``Trading System Preservation Act''.
SEC. 2. FINDINGS; SENSE OF CONGRESS.
(a) Findings.--Congress makes the following findings:
(1) The World Trade Organization (in this section referred
to as the ``WTO'') was established to be a forum for
multilateral trade negotiations between member countries.
(2) Scant negotiating progress has been made at the WTO
since its creation in 1995, including through the failed Doha
Round, which was initiated 20 years before the date of the
enactment of this Act.
(3) The inability to reach negotiated outcomes at the WTO
has pushed the multilateral trading system to the brink of
irrelevance and created incentives for members of the WTO to
pursue their trade policy objectives through litigation rather
than negotiation.
(4) That lack of negotiating progress can be generally
attributed to a small minority of WTO members that, for a
variety of reasons, have exercised an effective veto over
negotiations, effectively prohibiting agreement on new rules to
discipline discriminatory practices.
(5) Most favored nation (in this section referred to as
``MFN'') obligations, strictly defined, which appear to
generally require equal treatment of all WTO members, make it
difficult to achieve high-quality plurilateral agreements
because of concerns about free ridership by WTO members who are
not party to those agreements.
(b) Sense of Congress.--It is the sense of Congress that--
(1) the WTO system affords a variety of flexibilities for
WTO members to negotiate and conclude plurilateral agreements
without extending the benefits negotiated therein to the entire
membership of the WTO on an MFN basis;
(2) to reinvigorate the multilateral trading system and
advance its trade interests, the United States should exercise
its rights to negotiate new sectoral trade agreements with
other interested WTO members on a plurilateral basis;
(3) to facilitate those negotiations, enable a high level
of ambition, and avoid lowest common denominator outcomes, any
new benefits negotiated under those new agreements should be
limited to the participants and not extended to the entire
membership of the WTO; and
(4) pursuing plurilateral agreements that are not subject
to unconditional MFN will enable the United States to work with
like-minded countries within the framework of the WTO to
develop new rules to discipline discriminatory, trade
distorting, and non-market practices, restore the relevance of
the multilateral trading system, and expand trade to the
benefit of the citizens of the United States.
SEC. 3. BRIEFING ON PLURILATERAL AGREEMENTS WITH BENEFITS APPLYING ONLY
TO SIGNATORIES OF THOSE AGREEMENTS.
(a) In General.--Not later than 120 days after the date of the
enactment of this Act, the United States Trade Representative shall
provide to the Committee on Finance of the Senate and the Committee on
Ways and Means of the House of Representatives a classified briefing on
the feasibility and advisability of pursuing and adopting covered
plurilateral trade agreements.
(b) Elements.--The briefing required under subsection (a) shall
include a discussion of the opportunities, obstacles, feasibility, and
advisability of negotiating and adopting covered plurilateral trade
agreements.
(c) Definitions.--In this section:
(1) Covered plurilateral trade agreement.--The term
``covered plurilateral trade agreement'' means a sector-
specific agreement within the framework of the World Trade
Organization involving foreign countries or foreign territories
that form a subset of the members of the World Trade
Organization that does not extend benefits on a most favored
nation basis.
(2) Most favored nation.--The term ``most favored nation'',
with respect to requirements relating to a trade agreement,
means requirements under the World Trade Organization for
nondiscriminatory trade treatment among all parties to the
agreement.
SEC. 4. NEGOTIATING AND TRADE AGREEMENTS AUTHORITY FOR CERTAIN
PLURILATERAL AGREEMENTS WITH BENEFITS APPLYING ONLY TO
SIGNATORIES OF THOSE AGREEMENTS.
(a) Initiation of Negotiations.--
(1) In general.--In order to enhance the economic well-
being of the United States, the President shall initiate
negotiations for a covered plurilateral trade agreement under
this section when the President determines that it is in the
national interest to do so.
(2) Limitation.--The President may not initiate
negotiations for a covered plurilateral trade agreement under
this section until the date on which the United States Trade
Representative provides the briefing required by section 3(a).
(b) Authority for Agreements.--
(1) In general.--To strengthen the economic competitiveness
of the United States by improving trade relations with
countries similarly interested, the President may enter into
covered plurilateral trade agreements in a sector of the
economy specified in subsection (d).
(2) Termination of authority.--The authority under
paragraph (1) terminates on July 1, 2027.
(c) Modifications Permitted.--
(1) In general.--Subject to paragraph (2), the President
may proclaim such modification or continuance of any existing
duty or continuance of existing duty-free or excise treatment
as the President determines to be required or appropriate to
carry out an agreement entered into under subsection (b).
(2) Limitation.--Substantial modifications to, or
substantial additional provisions of, an agreement entered into
after July 1, 2027, are not covered by the authority under
paragraph (1).
(d) Sectors of the Economy Specified.--A sector of the economy
specified in this subsection is any of the following sectors:
(1) E-commerce and digital services.
(2) Pharmaceuticals and medical countermeasures.
(3) Environmental goods.
(4) Services.
(5) Any sector that is subject to substantial interference
by a foreign government, including through excessive subsidies
or state-owned enterprises.
(e) Consultation With and Notification to Congress.--The President
shall consult with Congress regarding, and notify Congress of, the
intention of the President to enter into an agreement under subsection
(b) or to make a proclamation under subsection (c).
(f) Participating Countries.--
(1) In general.--Subject to paragraph (2), the President
may determine which foreign countries or foreign territories to
negotiate with toward an agreement under this section and,
after the implementation of any such agreement, the President
may, as conditions warrant, identify and engage in negotiations
with additional countries or territories that wish to accede to
the agreement.
(2) Non-market economy country.--
(A) In general.--The President may not negotiate an
agreement under this section with a foreign country or
foreign territory determined to be a non-market economy
country pursuant to section 771(18) of the Tariff Act
of 1930 (19 U.S.C. 1677(18)).
(B) After entry into force.--A foreign country or
foreign territory described in subparagraph (A) may
accede to a completed agreement negotiated pursuant to
this section after entry into force of the agreement if
a joint resolution is first enacted approving the
accession of that country to the agreement.
(g) Bills Qualifying for Trade Authorities Procedures.--
(1) Implementing bills.--
(A) In general.--The provisions of section 151 of
the Trade Act of 1974 (19 U.S.C. 2191) apply to a bill
of either House of Congress which contains provisions
described in subparagraph (B) to the same extent as
such section 151 applies to implementing bills under
that section. A bill to which this paragraph applies
shall hereafter in this section be referred to as an
``implementing bill''.
(B) Provisions specified.--The provisions described
in this subparagraph are--
(i) a provision approving a trade agreement
entered into under this section and approving
the statement of administrative action, if any,
proposed to implement such trade agreement; and
(ii) if changes in existing laws or new
statutory authority are required to implement
such trade agreement or agreements, only such
provisions as are strictly necessary or
appropriate to implement such trade agreement
or agreements, either repealing or amending
existing laws or providing new statutory
authority.
(2) Deadline for submission of bill.--The procedures under
paragraph (1) apply to implementing bills submitted with
respect to trade agreements entered into under this section
before July 1, 2027.
(h) Relationship to Bipartisan Congressional Trade Priorities and
Accountability Act of 2015.--An agreement under this section shall not
enter into force with respect to the United States and an implementing
bill shall not qualify for trade authorities procedures under
subsection (g), including an agreement that does not require changes to
United States law or an implementing bill in connection therewith,
unless the following requirements under the Bipartisan Congressional
Trade Priorities and Accountability Act of 2015 (19 U.S.C. 4201 et
seq.) are carried out with respect to that agreement or implementing
bill to the same extent as would be required of an agreement entered
into under section 103(b) of that Act (19 U.S.C. 4202(b)),
notwithstanding the expiration of authority to enter into an agreement
under such section 103(b):
(1) The trade negotiating objectives under section 102 of
that Act (19 U.S.C. 4201).
(2) The congressional oversight and consultation
requirements under section 104 of that Act (19 U.S.C. 4203).
(3) The notification, consultation, and reporting
requirements under section 105 of that Act (19 U.S.C. 4204).
(4) The implementation procedures under section 106 of that
Act (19 U.S.C. 4205).
(i) Definitions.--In this section:
(1) Covered plurilateral trade agreement.--The term
``covered plurilateral trade agreement'' means a sector-
specific agreement within the framework of the World Trade
Organization involving foreign countries or foreign territories
that form a subset of the members of the World Trade
Organization that does not extend benefits on a most favored
nation basis.
(2) Most favored nation.--The term ``most favored nation'',
with respect to requirements relating to a trade agreement,
means requirements under the World Trade Organization for
nondiscriminatory trade treatment among all parties to the
agreement.
<all>
Introduced in Senate
Read twice and referred to the Committee on Finance.
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