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U.S. Code as of:
01/19/04
Section 3803. Trade agreements authority
(a) Agreements regarding tariff barriers
(1) In general
Whenever the President determines that one or more existing
duties or other import restrictions of any foreign country or the
United States are unduly burdening and restricting the foreign
trade of the United States and that the purposes, policies,
priorities, and objectives of this chapter will be promoted
thereby, the President -
(A) may enter into trade agreements with foreign countries
before -
(i) June 1, 2005; or
(ii) June 1, 2007, if trade authorities procedures are
extended under subsection (c) of this section; and
(B) may, subject to paragraphs (2) and (3), proclaim -
(i) such modification or continuance of any existing duty,
(ii) such continuance of existing duty-free or excise
treatment, or
(iii) such additional duties,
as the President determines to be required or appropriate to
carry out any such trade agreement.
The President shall notify the Congress of the President's
intention to enter into an agreement under this subsection.
(2) Limitations
No proclamation may be made under paragraph (1) that -
(A) reduces any rate of duty (other than a rate of duty that
does not exceed 5 percent ad valorem on August 6, 2002) to a
rate of duty which is less than 50 percent of the rate of such
duty that applies on August 6, 2002;
(B) reduces the rate of duty below that applicable under the
Uruguay Round Agreements, on any import sensitive agricultural
product; or
(C) increases any rate of duty above the rate that applied on
August 6, 2002.
(3) Aggregate reduction; exemption from staging
(A) Aggregate reduction
Except as provided in subparagraph (B), the aggregate
reduction in the rate of duty on any article which is in effect
on any day pursuant to a trade agreement entered into under
paragraph (1) shall not exceed the aggregate reduction which
would have been in effect on such day if -
(i) a reduction of 3 percent ad valorem or a reduction of
one-tenth of the total reduction, whichever is greater, had
taken effect on the effective date of the first reduction
proclaimed under paragraph (1) to carry out such agreement
with respect to such article; and
(ii) a reduction equal to the amount applicable under
clause (i) had taken effect at 1-year intervals after the
effective date of such first reduction.
(B) Exemption from staging
No staging is required under subparagraph (A) with respect to
a duty reduction that is proclaimed under paragraph (1) for an
article of a kind that is not produced in the United States.
The United States International Trade Commission shall advise
the President of the identity of articles that may be exempted
from staging under this subparagraph.
(4) Rounding
If the President determines that such action will simplify the
computation of reductions under paragraph (3), the President may
round an annual reduction by an amount equal to the lesser of -
(A) the difference between the reduction without regard to
this paragraph and the next lower whole number; or
(B) one-half of 1 percent ad valorem.
(5) Other limitations
A rate of duty reduction that may not be proclaimed by reason
of paragraph (2) may take effect only if a provision authorizing
such reduction is included within an implementing bill provided
for under section 3805 of this title and that bill is enacted
into law.
(6) Other tariff modifications
Notwithstanding paragraphs (1)(B), (2)(A), (2)(C), and (3)
through (5), and subject to the consultation and layover
requirements of section 115 of the Uruguay Round Agreements Act
[19 U.S.C. 3524], the President may proclaim the modification of
any duty or staged rate reduction of any duty set forth in
Schedule XX, as defined in section 2(5) of that Act [19 U.S.C.
3501(5)], if the United States agrees to such modification or
staged rate reduction in a negotiation for the reciprocal
elimination or harmonization of duties under the auspices of the
World Trade Organization.
(7) Authority under Uruguay Round Agreements Act not affected
Nothing in this subsection shall limit the authority provided
to the President under section 111(b) of the Uruguay Round
Agreements Act (19 U.S.C. 3521(b)).
(b) Agreements regarding tariff and nontariff barriers
(1) In general
(A) Whenever the President determines that -
(i) one or more existing duties or any other import
restriction of any foreign country or the United States or any
other barrier to, or other distortion of, international trade
unduly burdens or restricts the foreign trade of the United
States or adversely affects the United States economy, or
(ii) the imposition of any such barrier or distortion is
likely to result in such a burden, restriction, or effect,
and that the purposes, policies, priorities, and objectives of
this chapter will be promoted thereby, the President may enter
into a trade agreement described in subparagraph (B) during the
period described in subparagraph (C).
(B) The President may enter into a trade agreement under
subparagraph (A) with foreign countries providing for -
(i) the reduction or elimination of a duty, restriction,
barrier, or other distortion described in subparagraph (A); or
(ii) the prohibition of, or limitation on the imposition of,
such barrier or other distortion.
(C) The President may enter into a trade agreement under this
paragraph before -
(i) June 1, 2005; or
(ii) June 1, 2007, if trade authorities procedures are
extended under subsection (c) of this section.
(2) Conditions
A trade agreement may be entered into under this subsection
only if such agreement makes progress in meeting the applicable
objectives described in section 3802(a) and (b) of this title and
the President satisfies the conditions set forth in section 3804
of this title.
(3) Bills qualifying for trade authorities procedures
(A) The provisions of section 2191 of this title (in this
chapter referred to as "trade authorities procedures") apply to a
bill of either House of Congress which contains provisions
described in subparagraph (B) to the same extent as such section
2191 of this title applies to implementing bills under that
section. A bill to which this paragraph applies shall hereafter
in this chapter be referred to as an "implementing bill".
(B) The provisions referred to in subparagraph (A) are -
(i) a provision approving a trade agreement entered into
under this subsection 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,
provisions, necessary or appropriate to implement such trade
agreement or agreements, either repealing or amending existing
laws or providing new statutory authority.
(c) Extension disapproval process for Congressional trade
authorities procedures
(1) In general
Except as provided in section 3805(b) of this title -
(A) the trade authorities procedures apply to implementing
bills submitted with respect to trade agreements entered into
under subsection (b) of this section before July 1, 2005; and
(B) the trade authorities procedures shall be extended to
implementing bills submitted with respect to trade agreements
entered into under subsection (b) of this section after June
30, 2005, and before July 1, 2007, if (and only if) -
(i) the President requests such extension under paragraph
(2); and
(ii) neither House of the Congress adopts an extension
disapproval resolution under paragraph (5) before June 1,
2005.
(2) Report to Congress by the President
If the President is of the opinion that the trade authorities
procedures should be extended to implementing bills described in
paragraph (1)(B), the President shall submit to the Congress, not
later than March 1, 2005, a written report that contains a
request for such extension, together with -
(A) a description of all trade agreements that have been
negotiated under subsection (b) of this section and the
anticipated schedule for submitting such agreements to the
Congress for approval;
(B) a description of the progress that has been made in
negotiations to achieve the purposes, policies, priorities, and
objectives of this chapter, and a statement that such progress
justifies the continuation of negotiations; and
(C) a statement of the reasons why the extension is needed to
complete the negotiations.
(3) Other reports to Congress
(A) Report by the Advisory Committee
The President shall promptly inform the Advisory Committee
for Trade Policy and Negotiations established under section
2155 of this title of the President's decision to submit a
report to the Congress under paragraph (2). The Advisory
Committee shall submit to the Congress as soon as practicable,
but not later than May 1, 2005, a written report that contains
-
(i) its views regarding the progress that has been made in
negotiations to achieve the purposes, policies, priorities,
and objectives of this chapter; and
(ii) a statement of its views, and the reasons therefor,
regarding whether the extension requested under paragraph (2)
should be approved or disapproved.
(B) Report by ITC
The President shall promptly inform the International Trade
Commission of the President's decision to submit a report to
the Congress under paragraph (2). The International Trade
Commission shall submit to the Congress as soon as practicable,
but not later than May 1, 2005, a written report that contains
a review and analysis of the economic impact on the United
States of all trade agreements implemented between August 6,
2002, and the date on which the President decides to seek an
extension requested under paragraph (2).
(4) Status of reports
The reports submitted to the Congress under paragraphs (2) and
(3), or any portion of such reports, may be classified to the
extent the President determines appropriate.
(5) Extension disapproval resolutions
(A) For purposes of paragraph (1), the term "extension
disapproval resolution" means a resolution of either House of the
Congress, the sole matter after the resolving clause of which is
as follows: "That the __ disapproves the request of the President
for the extension, under section 2103(c)(1)(B)(i) of the
Bipartisan Trade Promotion Authority Act of 2002, of the trade
authorities procedures under that Act to any implementing bill
submitted with respect to any trade agreement entered into under
section 2103(b) of that Act after June 30, 2005.", with the blank
space being filled with the name of the resolving House of the
Congress.
(B) Extension disapproval resolutions -
(i) may be introduced in either House of the Congress by any
member of such House; and
(ii) shall be referred, in the House of Representatives, to
the Committee on Ways and Means and, in addition, to the
Committee on Rules.
(C) The provisions of section 2192(d) and (e) of this title
(relating to the floor consideration of certain resolutions in
the House and Senate) apply to extension disapproval resolutions.
(D) It is not in order for -
(i) the Senate to consider any extension disapproval
resolution not reported by the Committee on Finance;
(ii) the House of Representatives to consider any extension
disapproval resolution not reported by the Committee on Ways
and Means and, in addition, by the Committee on Rules; or
(iii) either House of the Congress to consider an extension
disapproval resolution after June 30, 2005.
(d) Commencement of negotiations
In order to contribute to the continued economic expansion of the
United States, the President shall commence negotiations covering
tariff and nontariff barriers affecting any industry, product, or
service sector, and expand existing sectoral agreements to
countries that are not parties to those agreements, in cases where
the President determines that such negotiations are feasible and
timely and would benefit the United States. Such sectors include
agriculture, commercial services, intellectual property rights,
industrial and capital goods, government procurement, information
technology products, environmental technology and services, medical
equipment and services, civil aircraft, and infrastructure
products. In so doing, the President shall take into account all of
the principal negotiating objectives set forth in section 3802(b)
of this title.
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