[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 746 Introduced in House (IH)]
109th CONGRESS
1st Session
H. R. 746
To require Congress to impose limits on United States foreign debt.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
February 10, 2005
Mr. Cardin (for himself, Mr. Rangel, Mr. Levin, Mr. McDermott, Mr.
Lewis of Georgia, Mr. Jefferson, Mr. Becerra, Mr. Larson of
Connecticut, Mr. Neal of Massachusetts, and Mr. Emanuel) introduced the
following bill; which was referred to the Committee on Ways and Means
_______________________________________________________________________
A BILL
To require Congress to impose limits on United States foreign debt.
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 ``Foreign Debt Ceiling Act of 2005''.
SEC. 2. FOREIGN DEBT CEILING.
(a) Findings.--Congress makes the following findings:
(1) The United States has become the world's largest net
debtor Nation, having run up massive trade deficits since the
1990s.
(2) At the end of 2002, the net United States foreign debt
stood at $2,553,000,000,000.
(3) The United States foreign debt position worsened in
2003, when the United States had a record trade deficit of
$489,000,000,000, equivalent to 4.4 percent of the United
States GDP that year.
(4) The large and growing United States foreign debt
represents claims on United States assets by foreign nationals,
which will eventually have to be repaid. If unchecked, the
foreign debt could seriously undermine our children's future
standard of living.
(5) Moreover, the growing accumulation of foreign claims on
United States assets, including over $1,200,000,000,000 in
United States Treasury securities, makes the United States
economy vulnerable to the whims of foreign investors.
(6) Congress presently places a ceiling on United States
public debt, but does not place a ceiling on United States
foreign debt.
(7) Just as Congress recognized the importance of placing a
ceiling on the United States public debt, it is appropriate
that Congress place a limit on the United States foreign debt.
(b) Actions Triggered by United States Foreign Debt.--
(1) In general.--Not later than the 15th day of the second
month after the date of enactment of this Act, and every 3
months thereafter, the United States Trade Representative shall
determine if--
(A) the net United States foreign debt for the
preceding 12-month period is more than 25 percent of
United States GDP for the same period; or
(B) the United States trade deficit for the
preceding 12-month period is more than 5 percent of
United States GDP for the same period.
(2) Action by ustr.--Whenever an affirmative determination
is made under paragraph (1) (A) or (B), the United States Trade
Representative shall--
(A) within 15 days after making the determination,
convene an emergency meeting of the Trade Policy Review
Group to develop a plan of action to reduce the United
States trade deficit; and
(B) within 45 days after making the determination,
present to Congress a report detailing the Trade Policy
Review Group's trade deficit reduction plan.
(c) Measurement of Foreign Debt.--
(1) Statistical sources.--For purposes of the calculations
described in subsection (b)(1), the United States Trade
Representative shall rely on the most recent period for which
the following data, published by the Department of Commerce, is
available:
(A) In the case of United States foreign debt, the
United States Trade Representative shall use the net
international investment position of the United States,
with direct investment positions determined at market
value, as compiled by the Bureau of Economic Analysis.
(B) In the case of the United States trade deficit,
the United States Trade Representative shall use the
goods and services trade deficit data compiled by the
United States Census Bureau.
(C) In the case of the United States GDP, the
United States Trade Representative shall use the
nominal gross domestic product data compiled by the
Bureau of Economic Analysis.
(2) Adjustment.--The United States Trade Representative may
adjust the data described in paragraph (1) to ensure that the
determination is made for comparable time periods.
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