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H.R. 2022 (105th): To amend trade laws and related provisions to clarify the designation of normal trade relations.

The text of the bill below is as of Jun 24, 1997 (Introduced).


HR 2022 IH

105th CONGRESS

1st Session

H. R. 2022

To amend trade laws and related provisions to clarify the designation of normal trade relations.

IN THE HOUSE OF REPRESENTATIVES

June 24, 1997

Mr. CAPPS (for himself, Mr. MATSUI, Mr. DREIER, Mr. DOOLEY of California, Mr. ROEMER, Mr. SALMON, Mr. FAZIO of California, and Mr. BEREUTER) introduced the following bill; which was referred to the Committee on Ways and Means


A BILL

To amend trade laws and related provisions to clarify the designation of normal trade relations.

    Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. FINDINGS AND POLICY.

    (a) FINDINGS- The Congress makes the following findings:

      (1) Since the 18th century, the principle of nondiscrimination among countries with which the United States has trade relations, commonly referred to as ‘most-favored-nation’ treatment, has been a cornerstone of United States trade policy.

      (2) Although the principle remains firmly in place as a fundamental concept in United States trade relations, the term ‘most-favored-nation’ is a misnomer which has led to public misunderstanding.

      (3) It is neither the purpose nor the effect of the most-favored-nation principle to treat any country as ‘most favored’. To the contrary, the principle reflects the intention to confer on a country the same trade benefits that are conferred on any other country, that is, the intention not to discriminate among trading partners.

      (4) The term ‘normal trade relations’ is a more accurate description of the principle of nondiscrimination as it applies to the tariffs applicable generally to imports from United States trading partners, that is, the general rates of duty set forth in column 1 of the Harmonized Tariff Schedule of the United States.

    (b) POLICY- It is the sense of the Congress that--

      (1) the language used in United States laws, treaties, agreements, executive orders, directives, and regulations should more clearly and accurately reflect the underlying principles of United States trade policy; and

      (2) accordingly, the term ‘normal trade relations’ should, where appropriate, be substituted for the term ‘most-favored-nation’.

SEC. 2. CHANGE IN TERMINOLOGY.

    (a) TRADE EXPANSION ACT OF 1962- The heading for section 251 of the Trade Expansion Act of 1962 (19 U.S.C. 1881) is amended to read as follows: ‘normal trade relations’.

    (b) TRADE ACT OF 1974- (1) Section 402 of the Trade Act of 1974 (19 U.S.C. 2432) is amended by striking ‘(most-favored-nation treatment)’ each place it appears and inserting ‘(normal trade relations)’.

    (2) Section 601(9) of the Trade Act of 1974 (19 U.S.C. 2481(9)) is amended by striking ‘most-favored-nation treatment’ and inserting ‘trade treatment based on normal trade relations (known under international law as most-favored-nation treatment)’.

    (c) CFTA- Section 302(a)(3)(C) of the United States Canada Free-Trade Agreement Implementation Act of 1988 (19 U.S.C. 2112 note) is amended by striking ‘the most-favored-nation rate of duty’ each place it appears and inserting ‘the general subcolumn of the column 1 rate of duty set forth in the Harmonized Tariff Schedule of the United States’.

    (d) NAFTA- Section 202(n) of the North American Free Trade Agreement Implementation Act (19 U.S.C. 3332(n)) is amended by striking ‘most-favored-nation’.

    (e) SEED ACT- Section 2(c)(11) of the Support for East European Democracy (SEED) Act of 1989 (22 U.S.C. 5401(c)(11)) is amended--

      (1) by striking ‘(commonly referred to as ‘most favored nation status’)’, and

      (2) by striking ‘MOST FAVORED NATION TRADE STATUS’ in the heading and inserting ‘NORMAL TRADE RELATIONS’.

    (f) UNITED STATES-HONG KONG POLICY ACT OF 1992- Section 103(4) of the United States-Hong Kong Policy Act of 1992 (22 U.S.C. 5713(4)) is amended by striking ‘(commonly referred to as ‘most-favored-nation status’)’.

SEC. 3. SAVINGS PROVISIONS.

    Nothing in this Act shall affect the meaning of any provision of law, Executive order, Presidential proclamation, rule, regulation, delegation of authority, other document, or treaty or other international agreement of the United States relating to the principle of ‘most-favored-nation’ (or ‘most favored nation’) treatment. Any Executive order, Presidential proclamation, rule, regulation, delegation of authority, other document, or treaty or other international agreement of the United States that has been issued, made, granted, or allowed to become effective and that is in effect on the effective date of this Act, or was to become effective on or after the effective date of this Act, shall continue in effect according to its terms until modified, terminated, superseded, set aside, or revoked in accordance with law.