19 USC 3803 - Trade agreements authority

U.S Code last checked for updates: Apr 26, 2024

§ 3803.

Trade agreements authority

(a)

Agreements regarding tariff barriers

(1)

In general

Whenever the President determines that one or more existing duties or other import restrictions of any foreign country or the United States are unduly burdening and restricting the foreign trade of the United States and that the purposes, policies, priorities, and objectives of this chapter will be promoted thereby, the President—

(A)

may enter into trade agreements with foreign countries before—

(i)

July 1, 2005; or

(ii)

July 1, 2007, if trade authorities procedures are extended under subsection (c); and

(B)

may, subject to paragraphs (2) and (3), proclaim—

(i)

such modification or continuance of any existing duty,

(ii)

such continuance of existing duty-free or excise treatment, or

(iii)

such additional duties,

as the President determines to be required or appropriate to carry out any such trade agreement.

The President shall notify the Congress of the President’s intention to enter into an agreement under this subsection.

(2)

Limitations

No proclamation may be made under paragraph (1) that—

(A)

reduces any rate of duty (other than a rate of duty that does not exceed 5 percent ad valorem on August 6, 2002) to a rate of duty which is less than 50 percent of the rate of such duty that applies on August 6, 2002;

(B)

reduces the rate of duty below that applicable under the Uruguay Round Agreements, on any import sensitive agricultural product; or

(C)

increases any rate of duty above the rate that applied on August 6, 2002.

(3)

Aggregate reduction; exemption from staging

(A)

Aggregate reduction

Except as provided in subparagraph (B), the aggregate reduction in the rate of duty on any article which is in effect on any day pursuant to a trade agreement entered into under paragraph (1) shall not exceed the aggregate reduction which would have been in effect on such day if—

(i)

a reduction of 3 percent ad valorem or a reduction of one-tenth of the total reduction, whichever is greater, had taken effect on the effective date of the first reduction proclaimed under paragraph (1) to carry out such agreement with respect to such article; and

(ii)

a reduction equal to the amount applicable under clause (i) had taken effect at 1-year intervals after the effective date of such first reduction.

(B)

Exemption from staging

(4)

Rounding

If the President determines that such action will simplify the computation of reductions under paragraph (3), the President may round an annual reduction by an amount equal to the lesser of—

(A)

the difference between the reduction without regard to this paragraph and the next lower whole number; or

(B)

one-half of 1 percent ad valorem.

(5)

Other limitations

(6)

Other tariff modifications

(7)

Authority under Uruguay Round Agreements Act not affected

(b)

Agreements regarding tariff and nontariff barriers

(1)

In general

(A)

Whenever the President determines that—

(i)

one or more existing duties or any other import restriction of any foreign country or the United States or any other barrier to, or other distortion of, international trade unduly burdens or restricts the foreign trade of the United States or adversely affects the United States economy, or

(ii)

the imposition of any such barrier or distortion is likely to result in such a burden, restriction, or effect,

and that the purposes, policies, priorities, and objectives of this chapter will be promoted thereby, the President may enter into a trade agreement described in subparagraph (B) during the period described in subparagraph (C).

(B)

The President may enter into a trade agreement under subparagraph (A) with foreign countries providing for—

(i)

the reduction or elimination of a duty, restriction, barrier, or other distortion described in subparagraph (A); or

(ii)

the prohibition of, or limitation on the imposition of, such barrier or other distortion.

(C)

The President may enter into a trade agreement under this paragraph before—

(i)

July 1, 2005; or

(ii)

July 1, 2007, if trade authorities procedures are extended under subsection (c).

(2)

Conditions

(3)

Bills qualifying for trade authorities procedures

(A)

The provisions of section 2191 of this title (in this chapter referred to as “trade authorities procedures”) apply to a bill of either House of Congress which contains provisions described in subparagraph (B) to the same extent as such section 2191 of this title applies to implementing bills under that section. A bill to which this paragraph applies shall hereafter in this chapter be referred to as an “implementing bill”.

(B)

The provisions referred to in subparagraph (A) are—

(i)

a provision approving a trade agreement entered into under this subsection and approving the statement of administrative action, if any, proposed to implement such trade agreement; and

(ii)

if changes in existing laws or new statutory authority are required to implement such trade agreement or agreements, provisions, necessary or appropriate to implement such trade agreement or agreements, either repealing or amending existing laws or providing new statutory authority.

(c)

Extension disapproval process for Congressional trade authorities procedures

(1)

In general

Except as provided in section 3805(b) of this title—

(A)

the trade authorities procedures apply to implementing bills submitted with respect to trade agreements entered into under subsection (b) before July 1, 2005; and

(B)

the trade authorities procedures shall be extended to implementing bills submitted with respect to trade agreements entered into under subsection (b) after June 30, 2005, and before July 1, 2007, if (and only if)—

(i)

the President requests such extension under paragraph (2); and

(ii)

neither House of the Congress adopts an extension disapproval resolution under paragraph (5) before July 1, 2005.

(2)

Report to Congress by the President

If the President is of the opinion that the trade authorities procedures should be extended to implementing bills described in paragraph (1)(B), the President shall submit to the Congress, not later than April 1, 2005, a written report that contains a request for such extension, together with—

(A)

a description of all trade agreements that have been negotiated under subsection (b) and the anticipated schedule for submitting such agreements to the Congress for approval;

(B)

a description of the progress that has been made in negotiations to achieve the purposes, policies, priorities, and objectives of this chapter, and a statement that such progress justifies the continuation of negotiations; and

(C)

a statement of the reasons why the extension is needed to complete the negotiations.

(3)

Other reports to Congress

(A)

Report by the Advisory Committee

The President shall promptly inform the Advisory Committee for Trade Policy and Negotiations established under section 2155 of this title of the President’s decision to submit a report to the Congress under paragraph (2). The Advisory Committee shall submit to the Congress as soon as practicable, but not later than June 1, 2005, a written report that contains—

(i)

its views regarding the progress that has been made in negotiations to achieve the purposes, policies, priorities, and objectives of this chapter; and

(ii)

a statement of its views, and the reasons therefor, regarding whether the extension requested under paragraph (2) should be approved or disapproved.

(B)

Report by ITC

(4)

Status of reports

(5)

Extension disapproval resolutions

(A)

For purposes of paragraph (1), the term “extension disapproval resolution” means a resolution of either House of the Congress, the sole matter after the resolving clause of which is as follows: “That the __ disapproves the request of the President for the extension, under section 2103(c)(1)(B)(i) of the Bipartisan Trade Promotion Authority Act of 2002, of the trade authorities procedures under that Act to any implementing bill submitted with respect to any trade agreement entered into under section 2103(b) of that Act after June 30, 2005.”, with the blank space being filled with the name of the resolving House of the Congress.

(B)

Extension disapproval resolutions—

(i)

may be introduced in either House of the Congress by any member of such House; and

(ii)

shall be referred, in the House of Representatives, to the Committee on Ways and Means and, in addition, to the Committee on Rules.

(C)

The provisions of section 2192(d) and (e) of this title (relating to the floor consideration of certain resolutions in the House and Senate) apply to extension disapproval resolutions.

(D)

It is not in order for—

(i)

the Senate to consider any extension disapproval resolution not reported by the Committee on Finance;

(ii)

the House of Representatives to consider any extension disapproval resolution not reported by the Committee on Ways and Means and, in addition, by the Committee on Rules; or

(iii)

either House of the Congress to consider an extension disapproval resolution after June 30, 2005.

(d)

Commencement of negotiations

(Pub. L. 107–210, div. B, title XXI, § 2103, Aug. 6, 2002, 116 Stat. 1004; Pub. L. 108–429, title II, § 2004(a)(17), Dec. 3, 2004, 118 Stat. 2591.)

cite as: 19 USC 3803