[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[S. 676 Introduced in Senate (IS)]
108th CONGRESS
1st Session
S. 676
To establish a WTO Dispute Settlement Review Commission, and for other
purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
March 20, 2003
Mr. Baucus (for himself, Mr. Craig, Mr. Bayh, and Mr. Rockefeller)
introduced the following bill; which was read twice and referred to the
Committee on Finance
_______________________________________________________________________
A BILL
To establish a WTO Dispute Settlement Review Commission, 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; FINDINGS; PURPOSE.
(a) Short Title.--This Act may be cited as the ``World Trade
Organization Dispute Settlement Review Commission Act''.
(b) 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 and
providing expanded economic opportunities for United States
firms and workers, while preserving United States sovereignty.
(2) The American people must receive assurances that United
States sovereignty will be protected, and United States
interests will be advanced, within the global trading system
which the WTO will oversee.
(3) The WTO's dispute settlement rules are meant to enhance
the likelihood that governments will observe their WTO
obligations. These dispute settlement rules will help ensure
that the United States will reap the full benefits of its
participation in the WTO.
(4) United States support for the WTO depends on obtaining
mutual trade benefits through the openness of foreign markets
and the maintenance of effective United States and WTO remedies
against unfair and otherwise harmful trade practices.
(5) Congress passed the Uruguay Round Agreements Act based
on its understanding that effective trade remedies would not be
eroded. These remedies are essential to continue the process of
opening foreign markets to imports of goods and services and to
prevent harm to American industry and agriculture.
(6) In particular, WTO dispute panels and the Appellate
Body should--
(A) operate with fairness and in an impartial
manner;
(B) not add to the obligations, or diminish the
rights, of WTO members under the Uruguay Round
Agreements; and
(C) observe the terms of reference and any
applicable WTO standard of review.
(c) Purpose.--It is the purpose of this Act to provide for the
establishment of the WTO Dispute Settlement Review Commission to
achieve the objectives described in subsection (b)(6).
SEC. 2. DEFINITIONS.
In this Act:
(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, or
any State, 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) Affirmative report.--The term ``affirmative report''
means a report described in section 234(b)(2) which contains
affirmative determinations made by the Commission under
paragraph (3) of section 4(a).
(3) Appellate body.--The term ``Appellate Body'' means the
Appellate Body established by the Dispute Settlement Body
pursuant to Article 17.1 of the Dispute Settlement
Understanding.
(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 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.
(7) Terms of reference.--The term ``terms of reference''
has the meaning given such term in the Dispute Settlement
Understanding.
(8) Trade representative.--The term ``Trade
Representative'' means the United States Trade Representative.
(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) World trade organization; wto.--The terms ``World
Trade Organization'' and ``WTO'' mean the organization
established pursuant to the WTO Agreement.
(11) WTO agreement.--The term ``WTO Agreement'' means the
Agreement Establishing the World Trade Organization entered
into on April 15, 1994.
SEC. 3. ESTABLISHMENT OF COMMISSION.
(a) Establishment.--There is established a commission to be known
as the World Trade Organization Dispute Settlement Review Commission
(in this Act referred to as the ``Commission'').
(b) Membership.--
(1) Composition.--The Commission shall be composed of 5
members, all of whom shall be retired judges of the Federal
judicial circuits, and who shall be appointed by the President,
after consultation with the Majority Leader and Minority Leader
of the House of Representatives, the Majority Leader and
Minority Leader of the Senate, the chairman and ranking member
of the Committee on Ways and Means of the House of
Representatives, and the chairman and ranking member of the
Committee on Finance of the Senate.
(2) Date of appointment.--The appointments of the members
of the Commission shall be made not later than 90 days after
the date of enactment of this Act.
(c) Period of Appointment; Vacancies.--
(1) In general.--Members of the Commission first appointed
shall each be appointed for a term of 5 years.
(2) Subsequent terms.--After the initial 5-year term, 3
members of the Commission shall be appointed for terms of 3
years and the remaining 2 members shall be appointed for terms
of 2 years.
(3) Vacancies.--
(A) In general.--Any vacancy on the Commission
shall not affect its powers, but shall be filled in the
same manner as the original appointment and shall be
subject to the same conditions as the original
appointment.
(B) Unexpired term.--An individual chosen to fill a
vacancy shall be appointed for the unexpired term of
the member replaced.
(d) Meetings.--
(1) Initial meeting.--Not later than 30 days after the date
on which all members of the Commission have been appointed, the
Commission shall hold its first meeting.
(2) Subsequent meetings.--The Commission shall meet
subsequently at the call of the chairperson.
(e) Quorum.--A majority of the members of the Commission shall
constitute a quorum, but a lesser number of members may hold hearings.
(f) Chairperson and Vice Chairperson.--The Commission shall select
a chairperson and vice chairperson from among its members.
(g) Affirmative Determinations.--An affirmative vote by a majority
of the members of the Commission shall be required for any affirmative
determination by the Commission under section 4.
SEC. 4. DUTIES OF THE COMMISSION.
(a) Review of World Trade Organization Dispute Settlement
Reports.--
(1) In general.--The Commission shall review--
(A) all reports of dispute settlement panels or the
Apellate Body of the WTO in proceedings initiated by
other parties to the WTO that are adverse to the United
States and that are adopted by the Dispute Settlement
Body; and
(B) upon request of the Trade Representative, the
chairman or ranking member of the Committee on Ways and
Means of the House of Representatives, or the chairman
or ranking member of the Committee on Finance of the
Senate, any other report of a dispute settlement panel,
or the Appellate Body that is adopted by the Dispute
Settlement Body.
(2) Scope of review.--In the case of a report described in
paragraph (1), the Commission shall conduct a complete review
and determine whether the panel or Appellate Body, as the case
may be--
(A) exceeded its authority or its terms of
reference;
(B) added to the obligations, or diminished the
rights of the United States under the Uruguay Round
Agreement that is the subject of the report;
(C) acted arbitrarily or capriciously, engaged in
misconduct, or demonstrably departed from the
procedures specified for panels and Appellate Bodies in
the applicable Uruguay Round Agreement; and
(D) deviated from the applicable standard of
review, including in antidumping, countervailing duty,
and other unfair trade remedy cases, the standard of
review set forth in Article 17.6 of the Agreement on
Implementation of Article VI of the General Agreement
on Tariffs and Trade, 1994.
(3) Affirmative determination.--If the Commission makes an
affirmative determination with respect to the action of a panel
or an Appellate Body under subparagraph (A), (B), (C), or (D)
of paragraph (2), the Commission shall determine whether the
action of the panel or Appellate Body materially affected the
outcome of the report of the panel or Appellate Body.
(b) Determination; Report.--
(1) Determination.--Not later than 120 days after the date
that a report of a panel or Appellate Body described in
subsection (a) is adopted by the Dispute Settlement Body, the
Commission shall make a written determination with respect to
matters described in subsection (a) (2) and (3).
(2) Reports.--The Commission shall report the determination
described in paragraph (1) to the Committee on Ways and Means
of the House of Representatives and the Committee on Finance of
the Senate.
SEC. 5. POWERS OF THE COMMISSION.
(a) Hearings.--The Commission may hold any hearings, sit and act at
any time and place, take any testimony, and receive any evidence as the
Commission considers advisable to carry out the purposes of this Act.
The Commission shall provide reasonable notice of a hearing held
pursuant to this subsection.
(b) Information From Interested Parties and Federal Agencies.--
(1) Notice of panel or appellate body report.--The Trade
Representative shall advise the Commission not later than 5
days after the date the Dispute Settlement Body adopts the
report of a panel or Appellate Body that is adverse to the
United States and shall immediately publish notice of that
advice in the Federal Register, along with notice of an
opportunity for interested parties to submit comments to the
Commission.
(2) Submissions and requests for information.--Any
interested party may submit comments to the Commission
regarding the panel or Appellate Body report. The Commission
may also secure directly from any Federal department or agency
any information the Commission considers necessary to carry out
the provisions of this Act. Upon request of the chairperson of
the Commission, the head of that department or agency shall
furnish the requested information to the Commission.
(3) Access to panel and appellate body documents.--
(A) In general.--The Trade Representative shall
make available to the Commission all submissions and
relevant documents relating to the panel or Appellate
Body report, including any information contained in
submissions identified by the provider of the
information as proprietary information or information
treated as confidential by a foreign government.
(B) Public access.--Any document which the Trade
Representative submits to the Commission shall be
available to the public, except information which is
identified as proprietary or confidential.
(4) Assistance from federal agencies; confidentiality.--
(A) Administrative assistance.--Any agency or
department of the United States that is designated by
the President shall provide administrative services,
funds, facilities, staff, or other support services to
the Commission to assist the Commission with the
performance of the Commission's functions.
(B) Confidentiality.--The Commission shall protect
from disclosure any document or information submitted
to it by a department or agency of the United States
which the agency or department requests be kept
confidential. The Commission shall not be considered to
be an agency for purposes of section 552 of title 5,
United States Code.
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