S. 1919Senate110th Congress (2007-2009)In Committee

Trade Enforcement Act of 2007

Sponsored by Max BaucusSen. Max Baucus (D-MT)
Introduced August 1, 2007

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Committee on Finance. Hearings held. Hearings printed: S.Hrg. 110-1047.

May 22, 2008

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SenateIntro Referral

Introduced in Senate

August 1, 2007

SenateIntro Referral

Sponsor introductory remarks on measure. (CR S10609-10610)

August 1, 2007

SenateIntro Referral

Read twice and referred to the Committee on Finance.

August 1, 2007

SenateCommittee

Committee on Finance. Hearings held. Hearings printed: S.Hrg. 110-1047.

May 22, 2008

Floor Debate

13 members

What members said about S. 1919 on the floor

3 Republicans10 Democrats
Dianne Feinstein
Sen. Dianne FeinsteinD-CA · Aug 1, 2007

Mr. President, I rise today with Senator Collins, Senator Durbin, Senator Feingold, Senator Kennedy, and Senator Casey to introduce legislation to authorize a comprehensive review of our nuclear…

Christopher J. Dodd
Sen. Christopher J. DoddD-CT · Aug 1, 2007

Mr. President, I rise to introduce bipartisan legislation with my colleague from Nebraska, Senator Hagel. The bill addresses an issue of paramount importance to our country and its quality of life:…

John F. Kerry
Sen. John F. KerryD-MA · Aug 1, 2007

Mr. President, today Senator Snowe and I are introducing the TSA Acquisition Reform Act of 2007 to repeal exemptions from Federal contracting laws that were granted to the Transportation Security…

Ron Wyden
Sen. Ron WydenD-OR · Aug 1, 2007

Mr. President, about a year ago, a group of hardwood plywood manufacturers came to me with a problem, Chinese hardwood plywood imports were threatening their businesses. They raised a whole host of…

Max Baucus
Sen. Max BaucusD-MT · Aug 1, 2007

Mr. President, I am proud to join with Senator Hatch to introduce the Trade Enforcement Act of 2007. This bill will provide the administration additional tools, resources, and accountability to…

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Arlen Specter
Sen. Arlen SpecterR-PA · Aug 1, 2007

Mr. President, I seek recognition today to introduce the Christopher Kangas Fallen Firefighter Apprentice Act, a bill designed to correct a flaw in the current definition of ``firefighter'' under the…

Jim Webb
Sen. Jim WebbD-VA · Aug 1, 2007

Mr. President, I rise today to join with my colleague Senator Jeff Sessions and 14 of our Senate colleagues to introduce the Civil War Battlefield Preservation Act of 2007. This bipartisan…

Edward M. Kennedy
Sen. Edward M. KennedyD-MA · Aug 1, 2007

Mr. President, it is an honor to join my colleagues in introducing the Equal Remedies Act of 2007 to repeal the caps on the amount of damages available in employment discrimination cases under the…

Jon Tester
Sen. Jon TesterD-MT · Aug 1, 2007

Mr. President, I rise today to introduce the Surface Owner Protection Act to help protect private property on split estates. The Western U.S. is experiencing a boom in oil and gas exploration that…

Jon Kyl
Sen. Jon KylR-AZ · Aug 1, 2007

Mr. President, today I am pleased to join with Senator McCain to introduce the Sierra Vista Sub-watershed Feasibility Study Act. This important piece of legislation is designed to authorize the…

Harry Reid
Sen. Harry ReidD-NV · Aug 1, 2007

Mr. President, small rural water systems are facing compliance deadlines, and need assistance without burdensome matching funding requirements. The Small Community Drinking Water Funding Act that I…

Herb Kohl
Sen. Herb KohlD-WI · Aug 1, 2007

Mr. President, I rise today to introduce the Student Credit Card Protection Act of 2007 with my colleagues Senators Smith, McCaskill, Sanders, and Durbin. This legislation will help prevent college…

Mitch McConnell
Sen. Mitch McConnellR-KY · Aug 1, 2007

I ask unanimous consent that the text of the bill be printed in the Record.

Bill Text

Latest available legislative text

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Introduced in SenateIssued August 1, 2007

II

110th CONGRESS

1st Session

S. 1919

IN THE SENATE OF THE UNITED STATES

August 1, 2007

Mr. Baucus (for himself, Mr. Hatch, and Ms. Stabenow) introduced the following bill; which was read twice and referred to the Committee on Finance

A BILL

To establish trade enforcement priorities for the United States, to strengthen the provisions relating to trade remedies, and for other purposes.

1.

Short title; table of contents

(a)

Short title

This Act may be cited as the Trade Enforcement Act of 2007.

(b)

Table of contents

The table of contents of this Act is as follows:

Sec. 1. Short title; table of contents.

TITLE I—Trade enforcement priorities

Sec. 101. Identification of trade enforcement priorities.

TITLE II—WTO Dispute Settlement Review Commission

Sec. 201. Definitions.

Sec. 202. Establishment of Commission.

Sec. 203. Membership.

Sec. 204. Duties of the Commission.

Sec. 205. Powers of the Commission.

Sec. 206. Changes in agency regulations or practice relating to adverse finding.

TITLE III—Market disruption by imports from China

Sec. 301. Limitation on presidential discretion.

TITLE IV—Strengthening antidumping and countervailing duty laws

Sec. 401. Application of countervailing duties to nonmarket economies.

Sec. 402. Clarification of determination of material injury.

TITLE V—Trade enforcement personnel

Sec. 501. Chief Trade Enforcement Officer.

Sec. 502. Trade Enforcement Working Group.

Sec. 503. Authorization of appropriations.

TITLE VI—Intellectual property enforcement personnel

Sec. 601. Section 337 judges.

TITLE VII—Interagency trade organization

Sec. 701. Clarification of role of interagency trade organization established under section 242(

a) of the Trade Expansion Act of 1962.
I

Trade enforcement priorities

101.

Identification of trade enforcement priorities

(a)

In general

Section 310 of the Trade Act of 1974 (19 U.S.C. 2420) is amended to read as follows:

310.

Identification of trade enforcement priorities

(a)

Identification and annual report

Not later than 75 days after the date that the National Trade Estimate under section 181(b) is required to be submitted each calendar year, the United States Trade Representative shall—

(1)

identify the trade enforcement priorities of the United States;

(2)

identify trade enforcement actions that the United States has taken during the previous year and provide an assessment of the impact those enforcement actions have had in addressing foreign trade barriers;

(3)

identify the priority foreign country trade practices on which the Trade Representative will focus the trade enforcement efforts of the United States during the upcoming year; and

(4)

submit to the Committee on Finance of the Senate and the Committee on Ways and Means of the House of Representatives and publish in the Federal Register a report on the priorities, actions, assessments, and practices identified in paragraphs (1), (2), and (3).

(b)

Factors To consider

In identifying priority foreign country trade practices under subsection (a)(3), the Trade Representative shall—

(1)

focus on those practices the elimination of which is likely to have the most significant potential to increase United States economic growth, either directly or through the establishment of a beneficial precedent; and

(2)

take into account all relevant factors, including—

(A)

the major barriers and trade distorting practices described in the most recent National Trade Estimate required under section 181(b);

(B)

the findings and practices described in the most recent report required under—

(i)

section 182;

(ii)

section 1377 of the Omnibus Trade and Competitiveness Act of 1988 (19 U.S.C. 3106);

(iii)

section 3005 of the Omnibus Trade and Competitiveness Act of 1988 (22 U.S.C. 5305); and

(iv)

section 421 of the U.S.-China Relations Act of 2000 (22 U.S.C. 6951);

(C)

the findings and practices described in any other report addressing international trade and investment barriers prepared by the Trade Representative or any other agency during the 12 months preceding the date on which the report described in subsection (a)(4) is required to be submitted;

(D)

a foreign country’s compliance with any trade agreements to which both the foreign country and the United States are parties;

(E)

a foreign country’s compliance with internationally recognized sanitary and phytosanitary standards;

(F)

the implications of a foreign country’s procurement plans and policies; and

(G)

the international competitive position and export potential of United States products and services.

(c)

Consultation

(1)

In general

Not later than 45 days after the date that the National Trade Estimate under section 181(b) is required to be submitted, the Trade Representative shall consult with the Committee on Finance of the Senate and the Committee on Ways and Means of the House of Representatives with respect to the priorities, actions, assessments, and practices required to be identified in the report under subsection (a).

(2)

Vote of committee

If, as a result of the consultations described in paragraph (1), either the Committee on Finance of the Senate or the Committee on Ways and Means of the House of Representatives requests identification of a priority foreign country trade practice by majority vote of the Committee, the Trade Representative shall include such identification in the report required under subsection (a).

(3)

Determination not to include priority foreign country trade practices

The Trade Representative may determine not to include the priority foreign country trade practice requested under paragraph (2) in the report required under subsection (a) only if the Trade Representative finds that—

(A)

such practice is already being addressed under provisions of United States trade law, under the Uruguay Round Agreements (as defined in section 2(7) of the Uruguay Round Agreements Act (19 U.S.C. 3501(7))), under a bilateral or regional trade agreement, or as part of trade negotiations with that foreign country or other countries, and progress is being made toward the elimination of such practice; or

(B)

identification of such practice as a priority foreign country trade practice would be contrary to the interests of United States trade policy.

(4)

Reasons for determination

In the case of a determination made pursuant to paragraph (3), the Trade Representative shall set forth in detail the reasons for that determination in the report required under subsection (a).

(d)

Investigation and resolution

(1)

In general

Upon submission of the report required under subsection (a), the Trade Representative shall, with respect to any priority foreign country trade practice identified, seek satisfactory resolution with the country concerned under the auspices of the World Trade Organization, pursuant to a bilateral or regional trade agreement to which the United States is a party, or by any other means. A satisfactory resolution may include elimination of the practice or, if not feasible, providing for compensatory trade benefits.

(2)

Consultations; investigations

Not later than 120 days after the date that the report described in subsection (a) is required to be submitted, the Trade Representative shall, with respect to any priority foreign country trade practice identified—

(A)

initiate dispute settlement consultations in the World Trade Organization;

(B)

initiate dispute settlement consultations under the applicable provisions of any bilateral or regional trade agreement to which the United States is a party;

(C)

initiate an investigation under section 302(b)(1);

(D)

seek to negotiate an agreement that provides for the elimination of the priority foreign country trade practice or, if elimination of the practice is not feasible, an agreement that provides for compensatory trade benefits; or

(E)

take any other action necessary to eliminate the priority foreign country trade practice.

(3)

Report

If the Trade Representative takes action under subparagraph (E) of paragraph (2), the Trade Representative shall, on the same day the Trade Representative takes such action, transmit to Congress a report describing in detail the action, the reasons for taking the action, and the reasons why the Trade Representative did not take action under subparagraphs (A) through (D) of such paragraph.

(e)

Additional reporting

The Trade Representative shall report to the Committee on Finance of the Senate and the Committee on Ways and Means of the House of Representatives every 6 months on the progress being made to realize the trade enforcement priorities identified in subsection (a)(1) and the steps being taken to address the priority foreign country trade practices identified in subsection (a)(3).

.

(b)

Conforming amendment

The table of contents for the Trade Act of 1974 is amended by striking the item relating to section 310, and inserting the following new item:

.

II

WTO Dispute Settlement Review Commission

201.

Definitions

For purposes of this title—

(1)

Adverse finding

The term adverse finding means a finding by a dispute settlement panel or the Appellate Body that any law, regulation, or practice 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).

(2)

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.

(3)

Dispute settlement body

The term Dispute Settlement Body means the Dispute Settlement Body established pursuant to the Dispute Settlement Understanding.

(4)

Dispute settlement panel; panel

The terms dispute settlement panel and panel mean a panel established pursuant to Article 6 of the Dispute Settlement Understanding.

(5)

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 (19 U.S.C. 3511(d)(16)).

(6)

Terms of reference

The term terms of reference has the meaning given such term in the Dispute Settlement Understanding.

(7)

Trade representative

The term Trade Representative means the United States Trade Representative.

(8)

Uruguay round agreement

The term Uruguay Round Agreement means any of the Agreements described in section 101(d) of the Uruguay Round Agreements Act (19 U.S.C. 3511(d)).

(9)

World Trade Organization; WTO

The terms World Trade Organization and WTO mean the organization established pursuant to the WTO Agreement.

(10)

WTO agreement

The term WTO Agreement means the Agreement Establishing the World Trade Organization entered into on April 15, 1994.

(11)

WTO member

The term WTO Member has the meaning given that term in section 2(10) of the Uruguay Round Agreements Act (19 U.S.C. 3501(10)).

202.

Establishment of Commission

There is established a commission to be known as the WTO Dispute Settlement Review Commission (in this section referred to as the Commission).

203.

Membership

(a)

Composition

The Commission shall be composed of 5 members, all of whom shall either be retired judges of the Federal judicial circuits or have substantial expertise in international trade law. The members shall be appointed by the President, after consultation with the majority leader and minority leader of the Senate, the majority leader and minority leader of the House of Representatives, the chairman and ranking member of the Committee on Finance of the Senate, and the chairman and ranking member of the Committee on Ways and Means of the House of Representatives.

(b)

Date of appointment

The appointments of the initial 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 shall each be appointed for a term of 5 years, except that 3 of the initial members shall each be appointed for a term of 3 years.

(2)

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 204.

(h)

Funding

Members of the Commission shall be allowed travel expenses, including per diem in lieu of subsistence at rates authorized for employees of agencies under subchapter I of chapter 57 of title 5, United States Code, while away from their homes or regular places of business in the performance of services for the Commission.

204.

Duties of the Commission

(a)

Review of WTO Dispute Settlement Reports

(1)

In general

The Commission shall review—

(A)

all reports of dispute settlement panels or the Appellate Body that contain adverse findings and that are adopted by the Dispute Settlement Body; and

(B)

upon the request of the Trade Representative, the chairman or ranking member of the Committee on Finance of the Senate, or the chairman or ranking member of the Committee on Ways and Means of the House of Representatives, any other report of a dispute settlement panel or the Appellate Body that is adopted by the Dispute Settlement Body.

(2)

Scope of review

The Commission shall conduct a complete review of the reports described in paragraph (1) 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 the Appellate Body in the applicable Uruguay Round Agreement; or

(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)

No deference

In making its determination under paragraph (2), the Commission shall not accord deference to findings of law made by the dispute settlement panel or the Appellate Body, as the case may be.

(4)

Affirmative determination

If the Commission makes an affirmative determination with respect to the action of a panel or the 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

(A)

In general

Not later than 120 days after the date on which the Commission receives notice of a finding or request under section 205(b), the Commission shall make a written determination with respect to matters described in subsection (a)(2) and (4), including a full analysis of the basis for its determination. A vote by a majority of the members of the Commission shall constitute a determination of the Commission, although the members need not agree on the basis for their vote.

(B)

Dissenting or concurring opinions

Any member of the Commission who disagrees with a determination of the Commission or who concurs in such a determination on a basis different from that of the Commission or other members of the Commission may write an opinion expressing such disagreement or concurrence, as the case may be.

(2)

Report

The Commission shall promptly report the determinations described in paragraph (1)(A) to the Committee on Finance of the Senate and the Committee on Ways and Means of the House of Representatives. The Commission shall include with the report any opinions written under paragraph (1)(B) with respect to the determination and a summary of any comments submitted pursuant to section 205(b)(2)(A).

(3)

Availability to the public

Each report of the Commission under paragraph (2), together with any opinions included with the report, shall be made available to the public.

205.

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 title. The Commission shall provide reasonable notice of a hearing held pursuant to this subsection.

(b)

Information from interested parties and Federal agencies

(1)

Notification to commission

(A)

Under section 204(a)(1)(A)

The Trade Representative shall advise the Commission not later than 5 days after the date the Dispute Settlement Body adopts an adverse finding that is to be reviewed by the Commission under section 204(a)(1)(A).

(B)

Under Section 204(a)(1)(B)

A request made by the Trade Representative, the chairman or ranking member of the Committee on Finance of the Senate, or the chairman or ranking member of the Committee on Ways and Means of the House of Representatives under section 204(a)(1)(B) shall be made not later than 1 year after the Dispute Settlement Body adopts the report that is the subject of the request.

(2)

Submissions and requests for information

(A)

In general

The Commission shall promptly publish notice in the Federal Register of any notice or request received under paragraph (1), and provide notice of an opportunity for interested parties to submit comments to the Commission.

(B)

Comments available to public

The Commission shall make comments submitted pursuant to subparagraph (A) available to the public.

(C)

Information from Federal agencies and departments

The Commission may secure directly from any Federal department or agency any information the Commission considers necessary to carry out the provisions of this title. Upon request of the Chairperson of the Commission, the head of the department or agency shall furnish the requested information to the Commission in a timely manner.

(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 at issue, including any information contained in submissions and relevant documents identified by the provider of the information as proprietary information or information designated as confidential by a foreign government.

(B)

Public access

Any document that the Trade Representative submits to the Commission shall be available to the public, except information that is identified as proprietary or confidential or the disclosure of which would otherwise violate the rules of the WTO.

(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 that 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.

206.

Changes in agency regulations or practice relating to adverse finding

Section 123(g) of the Uruguay Round Agreements Act (19 U.S.C. 3533(g)) is amended in paragraph (1)—

(1)

in subparagraph (E), by striking and;

(2)

by redesignating subparagraph (F) as subparagraph (G); and

(3)

by inserting after subparagraph (E) the following new subparagraph:

(F)

the Committee on Finance of the Senate and the Committee on Ways and Means of the House of Representatives have received the report on the determinations of the WTO Dispute Settlement Review Commission under section 204(b)(2) of the Trade Enforcement Act of 2007 with respect to the relevant dispute settlement panel or Appellate Body report; and

.

III

Market disruption by imports from China

301.

Limitation on presidential discretion

Section 421 of the Trade Act of 1974 (19 U.S.C. 2451) is amended—

(1)

in subsection (a)—

(A)

by inserting any before increased duties; and

(B)

by striking , to the extent and for such period and all that follows to the end period and inserting recommended by the International Trade Commission;

(2)

in subsection (e), in the second sentence, by striking agreed upon by either group and all that follows to the end period and inserting shall be considered an affirmative determination under subsection (b);

(3)

in subsection (f)—

(A)

in the heading, by striking on Proposed Remedies and inserting for Relief;

(B)

in the first sentence—

(i)

by striking the President or Trade Representative may consider as and inserting is to be considered; and

(ii)

by striking the Commission shall propose and inserting the Commission shall recommend; and

(C)

in the second sentence, by striking proposed action and inserting recommended action;

(4)

in subsection (g)(2)(B)—

(A)

by striking or may be considered by the President or the Trade Representative as and inserting or if the determination is considered to be; and

(B)

by striking on proposed remedies and inserting for relief;

(5)

in subsection (h)—

(A)

in the heading, by striking Proposed measure and recommendation to the President and inserting Recommended Relief and Report by Trade Representative;

(B)

in paragraph (1)—

(i)

by striking measure proposed by the Trade Representative to be taken pursuant to subsection (a) and inserting relief recommended by the Commission under subsection (f); and

(ii)

by striking proposed measure and inserting recommended relief;

(C)

in paragraph (2), by striking on the measure proposed by the Trade Representative and all that follows to the end period and inserting , shall transmit a report to the President recommending what action to take under subsection (k); and

(D)

by adding at the end the following new paragraph:

(3)

The Trade Representative, after submitting a report to the President under paragraph (2), shall promptly make the report available to the public, excluding any proprietary or confidential information. The Trade Representative shall publish a summary of the report in the Federal Register.

;

(6)

in subsection (i)—

(A)

in the flush sentence at the end of paragraph (1), by striking agreed upon by either group and all that follows to the end period and inserting shall be considered an affirmative determination of the Commission; and

(B)

by striking paragraphs (2), (3), and (4), and inserting the following:

(2)

On the date on which the Commission completes its determinations under paragraph (1), the Commission shall transmit a report on the determinations to the President and the Trade Representative, including the reasons for its determinations. If the determinations under paragraph (1) are affirmative or if the determinations are considered to be affirmative under paragraph (1), the Commission shall include in its report its recommendations on provisional relief to be taken to prevent or remedy the market disruption. Only those members of the Commission who agreed to the affirmative determinations under paragraph (1) are eligible to vote on the recommended provisional relief to prevent or remedy market disruption. Members of the Commission who did not agree to the affirmative determinations may submit, in the report, dissenting or separate views regarding the determination and any recommendation of provisional relief referred to in this paragraph.

(3)

The provisional relief referred to in paragraph (2) may include—

(A)

the imposition of or increase in any duty;

(B)

any modification, or imposition of any quantitative restriction on the importation of any article into the United States; or

(C)

any combination of actions under subparagraph (A) or (B).

(4)

If the determinations under paragraph (1) are affirmative or if the determinations are considered to be affirmative under paragraph (1), the Trade Representative shall, within 10 days after receipt of the Commission's report, transmit a report to the President recommending what action to take with respect to provisional relief under subsection (k).

(5)
(A)

The President shall proclaim any provisional relief recommended by the Commission not later than 10 days after the date the President receives the report described in paragraph (4) from the Trade Representative.

(B)

Any provisional relief proclaimed by the President pursuant to a determination of critical circumstances shall remain in effect for a period not to exceed 200 days.

(C)

Provisional relief shall cease to apply upon the effective date of relief proclaimed under subsection (a), upon a decision by the President not to provide such relief under subsection (k), or upon a negative determination by the Commission under subsection (b).

;

(7)

in subsection (j)—

(A)

in paragraph (1), by striking which the Trade Representative considers to be and inserting that is considered to be;

(B)

by striking paragraph (2) and inserting the following:

(2)

If no agreement is reached with the People's Republic of China pursuant to consultations under paragraph (1) in the time required for Presidential action under subsection (k), or if the President determines that an agreement reached pursuant to such consultations is not preventing or remedying the market disruption at issue in the time required for Presidential action under subsection (k), the President shall provide import relief in accordance with subsection (a).

.

(8)

in subsection (k)—

(A)

in the heading, by striking Standard for presidential action and inserting Timing for presidential action; exceptions;

(B)

in paragraph (1), by striking a recommendation from the Trade Representative and all that follows to the end period and inserting a report from the Trade Representative under subsection (h)(2), the President shall, pursuant to subsection (a), proclaim the relief recommended by the Commission; and

(C)

by amending paragraph (2) to read as follows:

(2)

The President may decline to proclaim relief pursuant to subsection (a), may proclaim relief pursuant to subsection (a) that differs from the relief recommended by the Commission, may decline to proclaim provisional relief pursuant to subsection (i), or may proclaim provisional relief pursuant to subsection (i) that differs from the relief recommended by the Commission—

(A)

only in extraordinary cases; and

(B)

only if the President determines that providing relief or provisional relief pursuant to subsection (a) or (i) or providing the relief recommended by the Commission pursuant to subsection (a) or (i)—

(i)

would have an adverse impact on the United States economy that clearly and significantly outweighs the benefits of such action; or

(ii)

would cause serious harm to the national security of the United States.

;

(9)

in subsection (l), by amending paragraph (1) to read as follows:

(1)

The President’s decision under subsection (k) shall be submitted to the Committee on Finance of the Senate and the Committee on Ways and Means of the House of Representatives and shall be published in the Federal Register within 15 days of the decision. In the submission to the committees and in publication in the Federal Register, the President shall include the reasons for the decision and the scope and duration of any action taken. If the President takes action that differs from the action recommended by the Commission under subsection (f) or declines to take action pursuant to subsection (k)(2), the President shall state in detail the reasons for such action or inaction.

;

(10)

by redesignating subsections (m) through (o) as subsections (n) through (p), respectively;

(11)

by inserting after subsection (l) the following new subsection:

(m)

Implementation of action recommended by Commission

(1)

If the President takes action that differs from the action recommended by the Commission under subsection (f) or declines to take action pursuant to subsection (k)(2)(B)(i), the action recommended by the Commission under subsection (f) shall take effect (as provided in subsection (n)(2)) upon the enactment of a joint resolution described in paragraph (2) within the 90-day period beginning on the date on which the President’s decision is transmitted to the Congress pursuant to subsection (l).

(2)

For purposes of this section, the term joint resolution means a joint resolution of the 2 Houses of the Congress, the sole matter after the resolving clause of which is as follows: That the Congress does not approve the action taken by, or the determination of, the President under section 421 of the Trade Act of 1974, notice of which was transmitted to the Congress on ______., with the blank space being filled with the appropriate date.

(3)

The provisions of section 152 (b), (d), (e), and (f) of the Trade Act of 1974 (19 U.S.C. 2192(b), (d), (e), and (f)) shall apply to joint resolutions under this section.

(4)

It is not in order for—

(A)

the Senate to consider any joint resolution not reported by the Committee on Finance; or

(B)

the House of Representatives to consider any joint resolution not reported by the Committee on Ways and Means.

;

(12)

in subsection (n), as redesignated, by striking Import relief under this section and all that follows to the end period and inserting the following:

(1)

Except as provided in paragraph (2), import relief under this section shall take effect not later than 15 days after the President’s determination to provide such relief.

(2)

If the action recommended by the Commission takes effect pursuant to subsection (m), the President shall, within 15 days after the date of the enactment of the joint resolution referred to in subsection (m), proclaim the action recommended by the Commission under subsection (f). Such action shall take effect not later than 15 days after the date of the President’s proclamation.

;

(13)

in subsection (o), as redesignated—

(A)

in paragraph (1), by striking 6-month and inserting 1-year; and

(B)

in paragraph (3), by inserting or (m) after subsection (k); and

(14)

in subsection (p), as redesignated—

(A)

in paragraph (1), by inserting or (m) after subsection (k);; and

(B)

in paragraph (3), by striking subsection (m) and inserting subsection (n).

IV

Strengthening antidumping and countervailing duty laws

401.

Application of countervailing duties to nonmarket economies

(a)

In general

Section 701(a)(1) of the Tariff Act of 1930 (19 U.S.C. 1671(a)(1)) is amended by inserting (including a nonmarket economy country) after country each place it appears.

(b)

Effective date

The amendment made by subsection (a) applies to petitions filed under section 702 of the Tariff Act of 1930 (19 U.S.C. 1671a) on or after October 1, 2006.

402.

Clarification of determination of material injury

Section 771(7) of the Tariff Act of 1930 (19 U.S.C. 1677(7)) is amended by adding at the end the following new subparagraph:

(J)

Clarification of determination of material injury

In determining if there is material injury, or threat of material injury, by reason of imports of the subject merchandise, the Commission shall make its determination without regard to—

(i)

whether other imports are likely to replace the subject merchandise, or

(ii)

the effect of a potential order on the domestic industry.

.

V

Trade enforcement personnel

501.

Chief Trade Enforcement Officer

(a)

Establishment of position

Section 141(b)(2) of the Trade Act of 1974 (19 U.S.C. 2171(b)(2)) is amended to read as follows:

(2)

There shall be in the Office 3 Deputy United States Trade Representatives, 1 Chief Agricultural Negotiator, and 1 Chief Trade Enforcement Officer who shall all be appointed by the President, by and with the advice and consent of the Senate. As an exercise of the rulemaking power of the Senate, any nomination of a Deputy United States Trade Representative, the Chief Agricultural Negotiator, or the Chief Trade Enforcement Officer submitted to the Senate for its advice and consent, and referred to a committee, shall be referred to the Committee on Finance. Each Deputy United States Trade Representative, the Chief Agricultural Negotiator, and the Chief Trade Enforcement Officer shall hold office at the pleasure of the President and shall have the rank of Ambassador.

.

(b)

Functions of position

Section 141(c) of the Trade Act of 1974 (19 U.S.C. 2171(c)) is amended by adding at the end the following new paragraph:

(6)

The principal function of the Chief Trade Enforcement Officer shall be to ensure that United States trading partners comply with trade agreements to which the United States is a party. The Chief Trade Enforcement Officer shall assist the United States Trade Representative in investigating and prosecuting disputes pursuant to trade agreements to which the United States is a party, including before the World Trade Organization, and shall assist the United States Trade Representative in carrying out the Trade Representative’s functions under subsection (d). The Chief Trade Enforcement Officer shall make recommendations with respect to the administration of United States trade laws relating to foreign government barriers to United States goods, services, investment, and intellectual property, and with respect to government procurement and other trade matters. The Chief Trade Enforcement Officer shall perform such other functions as the United States Trade Representative may direct.

.

(c)

Compensation

Section 5314 of title 5, United States Code, is amended by inserting Chief Trade Enforcement Officer as a new item after Chief Agricultural Negotiator.

(d)

Technical amendments

Section 141(e) of the Trade Act of 1974 (19 U.S.C. 2171(e)) is amended—

(1)

in paragraph (1), by striking 5314 and inserting 5315; and

(2)

in paragraph (2), by striking the maximum rate of pay for grade GS–18, as provided in section 5332 and inserting the maximum rate of pay for level IV of the Executive Schedule in section 5315.

502.

Trade Enforcement Working Group

(a)

Establishment

Not later than 90 days after the date of the enactment of this Act, the United States Trade Representative shall establish an interagency Trade Enforcement Working Group, which shall be chaired by the Chief Trade Enforcement Officer of the Office of the United States Trade Representative.

(b)

Membership

The Trade Enforcement Working Group shall include representatives from the Departments of State, Treasury, Commerce, and Agriculture, and such other departments and agencies as the United States Trade Representative considers appropriate.

(c)

Responsibility

The Trade Enforcement Working Group shall assist and advise the Chief Trade Enforcement Officer in carrying out the principal functions described in section 141(c)(6) of the Trade Act of 1974. Although the Chief Trade Enforcement Officer shall carefully consider any advice provided by the Trade Enforcement Working Group, the Chief Trade Enforcement Officer shall not seek clearance or any other form of approval from the Trade Enforcement Working Group for any actions the Chief Trade Enforcement Officer takes in carrying out the functions described in such section 141(c)(6).

503.

Authorization of appropriations

There is authorized to be appropriated $5,000,000 to the Office of the United States Trade Representative to carry out the provisions of this title.

VI

Intellectual property enforcement personnel

601.

Section 337 judges

Section 337 of the Tariff Act of 1930 (19 U.S.C. 1337) is amended by adding at the end the following new subparagraph:

(o)

Section 337 judges

(1)

In general

Notwithstanding the provisions of subsection 556(b) of title 5, United States Code, the Commission is authorized to appoint hearing officers, other than administrative law judges appointed under section 3105 of title 5, United States Code, to preside at the taking of evidence at hearings required by this section and to make initial and recommended decisions in accordance with sections 554, 556, and 557 of title 5, United States Code, in investigations under this section. The hearing officers appointed under this subsection shall be known as section 337 judges.

(2)

Qualifications

A person appointed as a section 337 judge under paragraph (1) shall possess a minimum of 7 years of legal experience and be licensed to practice law under the laws of a State, the District of Columbia, the Commonwealth of Puerto Rico, or any territorial court established under the Constitution of the United States. The Commission may promulgate such other regulations as the Commission considers necessary with respect to the qualifications of section 337 judges, including technical expertise and experience in patent, trademark, copyright, and unfair competition law.

(3)

Rotation

Section 337 judges shall be assigned to cases in rotation to the extent practicable or as otherwise provided for in the Commission’s rules.

(4)

Other duties

A section 337 judge may not perform duties inconsistent with the duties and responsibilities of a section 337 judge.

(5)

Removal

A section 337 judge may only be removed for good cause shown upon a hearing conducted on the record by the Merit Systems Protection Board. The failure of the Commission to adopt the initial or recommended decision of a section 337 judge shall not constitute good cause.

(6)

Competitive service

Except as otherwise provided, the laws, rules, and regulations applicable to positions in the competitive service apply to section 337 judges. Upon appointment, a section 337 judge shall be paid in accordance with the pay rates of section 5372 of title 5, United States Code, commensurate with the pay rate of an administrative law judge with similar time in service. Section 337 judges shall not be Senior Executive Service positions for the purposes of sections 3131 and 3132 of title 5, United States Code.

(7)

Performance evaluations

Section 337 judges shall not receive performance evaluations and shall not be compensated based on performance.

.

VII

Interagency trade organization

701.

Clarification of role of interagency trade organization established under section 242(a) of the Trade Expansion Act of 1962

Section 141(c)(1)(I) of the Trade Act of 1974 (19 U.S.C. 2171(c)(1)(I)) is amended to read as follows:

(I)

be chairman of the interagency trade organization established under section 242(a) of the Trade Expansion Act of 1962, consult with and carefully consider any advice provided by such organization in the performance of the functions of the United States Trade Representative, but the United States Trade Representative shall not seek clearance or any other form of approval from the interagency trade organization for any actions the United States Trade Representative takes in the performance of the functions described in this subsection; and

.