Super 301 Trade Enforcement Priorities Act Introduced in Senate
On March 31, 2011, Senator Brown (D) and two co-sponsors1 introduced S. 708, the Trade Enforcement Priorities Act of 2011, a bill to give the federal government more authority to address trade barriers that undermine U.S. workers and domestic manufacturing by reinstating “Super 301” authority.
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(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 has not been renewed since then.)
Prior to its expiration, practices which the USTR identified as Priority Foreign Country practices under Super 301, would be subject to negotiation and, if no resolution was obtained within 90 days, the U.S. might have ultimately taken retaliatory action (e.g., levying 100% duties), on specified products of the identified country.
According to congressional sources, S. 708 is identical to S. 1982, the Super 301 bill Senator Brown introduced in the 111th Congress.
Would Require USTR to Take Action Against Identified Trade Barriers
S. 708 would amend “Super 301” in 19 USC 2420 to require the USTR to:
Identify priority country trade practices. Not later than 75 days after the National Trade Estimate (NTE) is submitted, to submit an annual report to the Senate Finance and House Ways and Means Committees that identifies (i) trade enforcement priorities of the U.S.; (ii) trade enforcement actions taken during the previous year and an assessment of their impact; (iii) priority foreign country trade practices on which the USTR will focus U.S. trade enforcement efforts during the upcoming year.
In identifying priority foreign country trade practices, to focus on eliminating practices that would most likely result in an increase in U.S. economic growth; concentrate on U.S. trading partners that represent (i) the largest trade deficit in dollar value (excluding oil); (ii) the most negative impact on jobs; etc.
Consult with congressional committees. Within 90 days of submitting the NTE, to consult with the Senate Finance and House Ways and Means Committees regarding the priorities, actions, assessments, and practices outlined by the USTR in the annual report.
If either Committee requests identification of a priority foreign country trade practice by a majority vote, include such identification in its annual report unless (i) such practice is already being addressed; or (ii) such identification would be contrary to the interests of U.S. trade policy. The USTR would be required to set forth the reasons for such a determination in its annual report.
Negotiate with country. Not later than 120 days after the USTR submits its annual report, to engage in negotiations with the country concerned (as discussed below) to resolve the practice identified in the report.
Retaliatory action for practices by WTO and trade agreement countries. For WTO countries and countries with which the U.S. has a bilateral or regional trade agreement, the USTR would be required to initiate WTO or trade agreement dispute settlement consultations, seek to negotiate an agreement that provides for elimination of the practice, or take any other necessary action to facilitate elimination of the trade practice.
Retaliatory action for practices by other countries. For non-WTO countries, the USTR would be required to initiate a Section 301 investigation, seek to negotiate an agreement that provides for the elimination of the practice or, if elimination is not feasible, an agreement that provides for compensatory trade benefits, or take any other action necessary to eliminate the practice.
(In the past, under Section 301 investigations, the U.S. usually chose 100% duties on specified products of the country subject to the investigation as its retaliatory action.)
Report to Congress semi-annually. Not later than 180 days after the enactment, and every 180 days thereafter, to report to the Senate Finance and House Ways and Means Committees on the progress being made in realizing the trade enforcement priorities and steps being taken to address the identified priority foreign country trade practices.
Would Require GAO to Submit Biennial Report to Congress
S. 708 would also require the Government Accountability Office, not later than two years after the date of enactment, and every two years thereafter, to submit to the Senate Finance and House Ways and Means Committees a report assessing the actions taken by the USTR to realize the identified trade enforcement priorities and steps being taken to address the identified priority foreign country practices.
(See ITT’s Online Archives or 11/09/09 news, 09110930, for BP summary of S. 1982. See ITT’s Online Archives or 08/25/10 news, 10082511, for BP summary of House Trade Enforcement Priorities Act introduced in the 111th Congress.)
1Senators Stabenow (D) and Casey (D).
Senator Brown’s press release available here.