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Super 301 Trade Enforcement Priorities Act Introduced in House

On July 30, 2010, Representative Critz (D) and two co-sponsors1 introduced H.R. 6007, the Trade Enforcement Priorities Act, to amend 19 USC 2420 to strengthen provisions relating to the identification of U.S. trade expansion priorities.

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H.R. 6007 has been referred to the House Ways and Means Committee and is not yet in effect. Generally, in order for a bill to be implemented, identical versions of that bill must be passed by both the House and Senate, and then the bill must be approved (enacted) by the President.

H.R. 6007 would reinstate a modified "Super 301" authority. (Super 301 was initially mandated by the Omnibus Trade and Competitiveness Act of 1988 for a two-year period. It was reinstituted by Executive Order in 1994 for a two-year period, and extended in 1995 to calendar years 1996 and 1997. On April 1999, Super 301 was again reinstituted by Executive Order for the years of 1999-2001. It expired and has not been renewed.)

H.R. 6007 would amend 19 USC 2420 to:

USTR to identify priority country trade practices. Require the U.S. Trade Representative, within 30 days after the annual National Trade Estimate (NTE) report is submitted, to (i) review U.S. trade expansion priorities; (ii) identify priority foreign country practices the elimination of which are likely to have the most significant potential to increase U.S. exports, either directly or through the establishment of a beneficial precedent; and (iii) submit to the House Ways and Means and Senate Finance Committees and publish in the Federal Register a report on the priority foreign country practices so identified.

In identifying priority foreign country trade practices, the USTR would be required to take into account all relevant factors, including: (i) the major barriers and trade distorting practices described in the NTE report; (ii) a foreign country’s compliance with free trade agreements; (iii) the medium- and long-term implications of a foreign government’s procurement plans; and (iv) the international competitive position and export potential of U.S. products and services.

Contents of report to Congressional committees. The USTR may include in its priority foreign country practices report a (i) description of foreign country practices that may warrant identification in the future as a priority foreign country practice; and (ii) statement about other foreign country practices that were not identified (as they are already being addressed by existing law, trade agreements, etc. and progress is being made toward their elimination).

Consultations with foreign countries. Require the USTR, no later than 21 days after its submits it priority foreign country practices report, to seek consultations with each foreign country identified in the report as engaging in priority foreign country practices for the purpose of reaching a satisfactory resolution.

Section 301 investigation if no resolution in 90 days. If the USTR seeks consultations and satisfactory resolution has not been reached within 90 days after the USTR submits its priority foreign country practices report, the USTR would be required to initiate a Section 301 investigation.

Agreement to eliminate practices or compensatory trade benefits. As part of its consultation with foreign countries, the USTR would have to seek to negotiate an agreement that provides for the elimination of the practices that are the subject of the investigation as quickly as possible or, if elimination of the practices is not feasible, an agreement that provides for compensatory trade benefits.

The USTR would be required to include in the semiannual report required by 19 USC 2419(3) a report on the status of any Section 301 investigations initiated pursuant to the above provisions and, where appropriate, the extent to which such investigations have led to increased opportunities for U.S. product and services exports.

(See ITT’s Online Archives or 11/09/09 news, 09110930, for BP summary of a Senate Super 301 bill (S. 1982), which is different than H.R. 6007.S. 1982 has been referred to the Senate Finance Committee, but has had no further action.)

1Representatives Sanchez (D) and Boccieri (D).