H.R. 2708 (105th): Enhancement of Trade, Security, and Human Rights through Sanctions Reform Act

105th Congress, 1997–1998. Text as of Oct 23, 1997 (Introduced).

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HR 2708 IH

105th CONGRESS

1st Session

H. R. 2708

To provide a framework for consideration by the legislative and executive branches of unilateral economic sanctions.

IN THE HOUSE OF REPRESENTATIVES

October 23, 1997

Mr. HAMILTON (for himself, Mr. CRANE, Mr. KOLBE, Mr. BEREUTER, Mr. EWING, Mr. MANZULLO, and Mr. BLUMENAUER) introduced the following bill; which was referred to the Committee on International Relations, and in addition to the Committees on Ways and Means, and Banking and Financial Services, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned


A BILL

To provide a framework for consideration by the legislative and executive branches of unilateral economic sanctions.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ‘Enhancement of Trade, Security, and Human Rights through Sanctions Reform Act’.

SEC. 2. PURPOSE.

    It is the purpose of this Act to establish an effective framework for consideration by the legislative and executive branches of unilateral economic sanctions.

SEC. 3. STATEMENT OF POLICY.

    It is the policy of the United States--

      (1) to pursue United States interests through vigorous and effective diplomatic, political, commercial, charitable, educational, cultural, and strategic engagement with other countries, while recognizing that the national security interests of the United States may sometimes require the imposition of economic sanctions on other countries;

      (2) to foster multilateral cooperation on vital matters of United States foreign policy, including promoting human rights and democracy, combating international terrorism, proliferation of weapons of mass destruction, and international narcotics trafficking, and ensuring adequate environmental protection;

      (3) to promote United States economic growth and job creation by expanding exports of goods, services, and agricultural commodities, and by encouraging investment that supports the sale abroad of products and services of the United States;

      (4) to maintain the reputation of United States businesses and farmers as reliable suppliers to international customers of quality products and services, including United States manufactures, technology products, financial services, and agricultural commodities;

      (5) to avoid the use of restrictions on exports of agricultural commodities as a foreign policy weapon;

      (6) to oppose policies of other countries designed to discourage economic interaction with countries friendly to the United States or with any United States national, and to avoid use of such measures as instruments of United States foreign policy; and

      (7) when economic sanctions are necessary--

        (A) to target them as narrowly as possible on those foreign governments, entities, and officials that are responsible for the conduct being targeted, thereby minimizing unnecessary or disproportionate harm to individuals who are not responsible for such conduct; and

        (B) to the extent feasible, to avoid any adverse impact of economic sanctions on the humanitarian activities of United States and foreign nongovernmental organizations in a country against which sanctions are imposed.

SEC. 4. DEFINITIONS.

    As used in this Act:

      (1) UNILATERAL ECONOMIC SANCTION-

        (A) IN GENERAL- The term ‘unilateral economic sanction’ means any restriction or condition on economic activity with respect to a foreign country or foreign entity that is imposed by the United States for reasons of foreign policy or national security, including any of the measures described in subparagraph (B), except in a case in which the United States imposes the measure pursuant to a multilateral regime and the other members of that regime have agreed to impose substantially equivalent measures.

        (B) PARTICULAR MEASURES- The measures referred to in subparagraph (A) are the following:

          (i) The suspension, restriction, or prohibition of exports or imports of any product, technology, or service to or from a foreign country or entity.

          (ii) The suspension of, or any restriction or prohibition on, financial transactions with a foreign country or entity.

          (iii) The suspension of, or any restriction or prohibition on, direct or indirect investment in or from a foreign country or entity.

          (iv) The imposition of increased tariffs on, or other restrictions on imports of, products of a foreign country or entity, including the denial, revocation, or conditioning of nondiscriminatory (most-favored-nation) trade treatment.

          (v) The suspension of, or any restriction or prohibition on--

            (I) the authority of the Export-Import Bank of the United States to give approval to the issuance of any guarantee, insurance, or extension of credit in connection with the export of goods or services to a foreign country or entity;

            (II) the authority of the Trade and Development Agency to provide assistance in connection with projects in a foreign country or in which a particular foreign entity participates; or

            (III) the authority of the Overseas Private Investment Corporation to provide insurance, reinsurance, financing, or conduct other activities in connection with projects in a foreign country or in which a particular foreign entity participates.

          (vi) A requirement that the United States representative to an international financial institution vote against any loan or other utilization of funds to, for, or in a foreign country or particular foreign entity.

          (vii) A measure imposing any restriction or condition on economic activity on any foreign government or entity on the ground that such government or entity does business in or with a foreign country.

          (viii) A measure imposing any restriction or condition on economic activity on any person that is a national of a foreign country, or on any government or other entity of a foreign country, on the ground that the government of that country has not taken measures in cooperation with, or similar to, sanctions imposed by the United States on a third country.

          (ix) The suspension of, or any restriction or prohibition on, travel rights or air transportation to or from a foreign country.

          (x) Any restriction on the filing or maintenance in a foreign country of any proprietary interest in intellectual property rights (including patents, copyrights, and trademarks), including payment of patent maintenance fees.

        (C) MULTILATERAL REGIME- As used in this paragraph, the term ‘multilateral regime’ means an agreement, arrangement, or obligation under which the United States cooperates with other countries in restricting commerce for reasons of foreign policy or national security, including--

          (i) obligations under resolutions of the United Nations;

          (ii) nonproliferation and export control arrangements, such as the Australia Group, the Nuclear Supplier’s Group, the Missile Technology Control Regime, and the Wassenaar Arrangement;

          (iii) treaty obligations, such as under the Chemical Weapons Convention, the Treaty on the Non-Proliferation of Nuclear Weapons, and the Biological Weapons Convention; and

          (iv) agreements concerning protection of the environment, such as the International Convention for the Conservation of Atlantic Tunas, the Declaration of Panama referred to in section 2(a)(1) of the International Dolphin Conservation Act (16 U.S.C. 1361 note), the Convention on International Trade in Endangered Species, the Montreal Protocol on Substances that Deplete the Ozone Layer, and the Basel Convention on the Control of Transboundary Movements of Hazardous Wastes.

        (D) FINANCIAL TRANSACTION- As used in this paragraph, the term ‘financial transaction’ has the meaning given that term in section 1956(c)(4) of title 18, United States Code.

        (E) INVESTMENT- As used in this paragraph, the term ‘investment’ means any contribution or commitment of funds, commodities, services, patents, or other forms of intellectual property, processes, or techniques, including--

          (i) a loan or loans;

          (ii) the purchase of a share of ownership;

          (iii) participation in royalties, earnings, or profits; and

          (iv) the furnishing or commodities or services pursuant to a lease or other contract.

        (F) EXCLUSIONS- The term ‘unilateral economic sanction’ does not include--

          (i) any measure imposed to remedy unfair trade practices or to enforce United States rights under a trade agreement, including under section 337 of the Tariff Act of 1930, title VII of that Act, title III of the Trade Act of 1974, sections 1374 and 1377 of the Omnibus Trade and Competitiveness Act of 1988 (19 U.S.C. 3103 and 3106), and section 3 of the Act of March 3, 1933 (41 U.S.C. 10b-1);

          (ii) any measure imposed to remedy market disruption or to respond to injury to a domestic industry for which increased imports are a substantial cause or threat thereof, including remedies under sections 201 and 406 of the Trade Act of 1974, and textile import restrictions (including those imposed under section 204 of the Agricultural Act of 1956 (7 U.S.C. 1784));

          (iii) any action taken under title IV of the Trade Act of 1974, including the enactment of a joint resolution under section 402(d)(2) of that Act;

          (iv) any measure imposed to restrict imports of agricultural commodities to protect food safety or to ensure the orderly marketing of commodities in the United States, including actions taken under section 22 of the Agricultural Adjustment Act (7 U.S.C. 624);

          (v) any measure imposed to restrict imports of any other products in order to protect domestic health or safety;

          (vi) any measure authorized by, or imposed under, a multilateral or bilateral trade agreement to which the United States is a signatory, including the Uruguay Round Agreements, the North American Free Trade Agreement, the United States-Israel Free Trade Agreement, and the United States-Canada Free Trade Agreement; and

          (vii) any export control imposed on any item on the United States Munitions List.

      (2) NATIONAL EMERGENCY- The term ‘national emergency’ means any unusual or extraordinary threat, which has its source in whole or substantial part outside the United States, to the national security, foreign policy, or economy of the United States.

      (3) AGRICULTURAL COMMODITY- The term ‘agricultural commodity’ has the meaning given that term in section 102(1) of the Agricultural Trade Act of 1978 (7 U.S.C. 5602(1)).

      (4) APPROPRIATE COMMITTEES- The term ‘appropriate committees’ means the Committee on Agriculture, the Committee on International Relations, the Committee on Ways and Means, and the Committee on Banking and Financial Services of the House of Representatives, and the Committee on Agriculture, Nutrition, and Forestry, the Committee on Finance, and the Committee on Foreign Relations of the Senate.

      (5) CONTRACT SANCTITY- The term ‘contract sanctity’, with respect to a unilateral economic sanction, refers to the inapplicability of the sanction to--

        (A) a contract or agreement entered into before the sanction is imposed, or to a valid export license or other authorization to export; and

        (B) actions taken to enforce the right to maintain intellectual property rights, in the foreign country against which the sanction is imposed, which existed before the imposition of the sanction.

SEC. 5. GUIDELINES FOR UNILATERAL ECONOMIC SANCTIONS LEGISLATION.

    Any bill or joint resolution that imposes any unilateral economic sanction, or authorizes the imposition of any unilateral economic sanction by the executive branch, and is considered by the House of Representatives or the Senate, should--

      (1) state the foreign policy or national security objective or objectives of the United States that the economic sanction is intended to achieve;

      (2) provide that the economic sanction terminate 2 years after it is imposed, unless specifically reauthorized by the Congress;

      (3) provide for contract sanctity;

      (4) provide authority for the President both to adjust the timing and scope of the sanction and to waive the sanction, if the President determines it is in the national interest to do so;

      (5)(A) target the sanction as narrowly as possible on foreign governments, entities, and officials that are responsible for the conduct being targeted; and

      (B) seek to minimize any adverse impact on the humanitarian activities of United States and foreign nongovernmental organizations in any country against which the sanction may be imposed; and

      (6) provide, to the extent that the Secretary of Agriculture or the Congressional Budget Office finds that--

        (A) the proposed sanction is likely to restrict exports of any agricultural commodity or is likely to result in retaliation against exports of any agricultural commodity from the United States, and

        (B) the sanction is proposed to be imposed, or is likely to be imposed, on a country or countries that constituted, in the preceding calendar year, the market for more than 3 percent of all export sales from the United States of an agricultural commodity,

      that the Secretary of Agriculture expand agricultural export assistance under United States market development, food assistance, or export promotion programs to offset the likely damage to incomes of producers of the affected agricultural commodity or commodities, to the maximum extent permitted by the obligations of the United States under the Agreement on Agriculture referred to in section 101(d)(2) of the Uruguay Round Agreements Act (19 U.S.C. 3511(d)(2)).

SEC. 6. REQUIREMENTS FOR BILL OR JOINT RESOLUTION.

    (a) PUBLIC COMMENT- Before considering a bill or joint resolution that imposes any unilateral economic sanction, or authorizes the imposition of any unilateral economic sanction by the executive branch, the committee of primary jurisdiction shall publish a notice which provides an opportunity for interested members of the public to submit comments to the committee on the proposed sanction.

    (b) WHEN REPORTS REQUESTED- The committee of primary jurisdiction that orders reported a bill or joint resolution described in section 5 shall timely request from the President and the Secretary of Agriculture the reports identified in subsection (c). Each such report that has been timely submitted prior to the filing of the committee report accompanying the bill or joint resolution shall be included in the committee report. The committee report shall also contain, if the bill or joint resolution does not meet any of the guidelines specified in paragraphs (1) through (6) of section 5, an explanation of why it does not.

    (c) REPORTS-

      (1) REPORT BY THE PRESIDENT- The President’s report to the Congress under subsection (b) shall contain--

        (A) an assessment of--

          (i) the likelihood that the proposed unilateral economic sanction will achieve its stated objective within a reasonable period of time; and

          (ii) the impact of the proposed unilateral economic sanction on--

            (I) humanitarian conditions, including the impact on conditions in any specific countries on which the sanction is proposed to be or may be imposed;

            (II) humanitarian activities of United States and foreign nongovernmental organizations;

            (III) relations with United States allies;

            (IV) other United States national security and foreign policy interests; and

            (V) countries and entities other than those on which the sanction is proposed to be or may be imposed;

        (B) a description and assessment of--

          (i) diplomatic and other steps the United States has taken to accomplish the intended objectives of the unilateral sanction legislation;

          (ii) the likelihood of multilateral adoption of comparable measures;

          (iii) comparable measures undertaken by other countries;

          (iv) alternative measures to promote the same objectives, and an assessment of their potential effectiveness;

          (v) any obligations of the United States under international treaties or trade agreements with which the proposed sanction may conflict;

          (vi) the likelihood that the proposed sanction will lead to retaliation against United States interests, including agricultural interests; and

          (vii) whether the achievement of the objectives of the proposed sanction outweighs any likely costs to United States foreign policy, national security, economic, and humanitarian interests, including any potential harm to United States business, agriculture, and consumers, and any potential harm to the international reputation of the United States as a reliable supplier of products, technology, agricultural commodities, and services.

      (2) REPORT BY THE SECRETARY OF AGRICULTURE- The Secretary of Agriculture shall submit to the appropriate committees a report which shall contain an assessment of--

        (A) the extent to which any country or countries proposed to be sanctioned or likely to be sanctioned are markets that accounted for, in the preceding calendar year, more than 3 percent of all export sales from the United States of any agricultural commodity;

        (B) the likelihood that exports of agricultural commodities from the United States will be affected by the proposed sanction or by retaliation by any country proposed to be sanctioned or likely to be sanctioned, and specific commodities which are most likely to be affected;

        (C) the likely effect on incomes of producers of the specific commodities identified by the Secretary;

        (D) the extent to which the proposed sanction would permit foreign suppliers to replace United States suppliers; and

        (E) the likely effect of the proposed sanction on the reputation of United States farmers as reliable suppliers of agricultural commodities in general, and of the specific commodities identified by the Secretary.

      (3) FEDERAL PRIVATE SECTOR MANDATE-

        (A) IN GENERAL- Any bill or joint resolution that imposes any unilateral economic sanction described in section 5 shall be considered to include a Federal private sector mandate for purposes of part B of title IV of the Congressional Budget Act of 1974.

        (B) REPORT BY THE CONGRESSIONAL BUDGET OFFICE- The report by the Congressional Budget Office pursuant to subparagraph (A) shall include an assessment of the likely short-term and long-term costs of the proposed sanction to the United States economy, including the potential impact on United States trade performance, employment, and growth, the international reputation of the United States as a reliable supplier of products, agricultural commodities, technology, and services, and the economic well-being and international competitive position of United States industries, firms, workers, farmers, and communities.

SEC. 7. REQUIREMENTS FOR EXECUTIVE ACTION.

    (a) IN GENERAL- The President may implement a unilateral economic sanction under any provision of law not less than 60 days after announcing his intention to do so.

    (b) CONSULTATION- The President shall consult with the appropriate committees regarding the proposed unilateral economic sanction, including consultations regarding efforts to achieve or increase multilateral cooperation on the issues or problems prompting the proposed sanction.

    (c) PUBLIC HEARINGS; RECORD- The President shall publish a notice in the Federal Register of the opportunity for interested persons to submit comments on the proposed unilateral economic sanction.

    (d) GUIDELINES FOR EXECUTIVE BRANCH SANCTIONS- Any unilateral economic sanction imposed by the President--

      (1) shall--

        (A) include a clear finding that the sanction is likely to achieve a specific United States foreign policy or national security objective within a reasonable period of time, which shall be specified, and that the achievement of the objectives of the sanction outweighs any costs to United States national interests;

        (B) provide for contract sanctity;

        (C) terminate not later than 2 years after the sanction is imposed, unless specifically extended by the President in accordance with the procedures of this section;

        (D)(i) be targeted as narrowly as possible on foreign governments, entities, and officials that are responsible for the conduct being targeted; and

        (ii) seek to minimize any adverse impact on the humanitarian activities of United States and foreign nongovernmental organizations in a country against which the sanction may be imposed; and

      (2) should provide, to the extent that the Secretary of Agriculture finds that--

        (A) a unilateral economic sanction is likely to restrict exports of any agricultural commodity from the United States or is likely to risk retaliation against exports of any agricultural commodity from the United States, and

        (B) the sanction is proposed to be imposed, or is likely to be imposed, on a country or countries that constituted, in the preceding calendar year, the market for more than 3 percent of all export sales from the United States of an agricultural commodity,

      that the Secretary of Agriculture expand agricultural export assistance under United States market development, food assistance, or export promotion programs to offset the likely damage to incomes of producers of the affected agricultural commodity or commodities, to the maximum extent permitted by law and by the obligations of the United States under the Agreement on Agriculture referred to in section 101(d)(2) of the Uruguay Round Agreements Act (19 U.S.C. 3511(d)(2)).

    (e) REPORT BY THE PRESIDENT- Prior to imposing any unilateral economic sanction, the President shall provide a report to the appropriate committees on the proposed sanction. The report shall include the report of the International Trade Commission under subsection (g) (if timely submitted prior to the filing of the report). The President’s report shall contain the following:

      (1) An explanation of the foreign policy or national security objective or objectives intended to be achieved through the proposed sanction.

      (2) An assessment of--

        (A) the likelihood that the proposed unilateral economic sanction will achieve its stated objectives within the stated period of time; and

        (B) the impact of the proposed unilateral economic sanction on--

          (i) humanitarian conditions, including the impact on conditions in any specific countries on which the sanctions are proposed to be imposed;

          (ii) humanitarian activities of United States and foreign nongovernmental organizations;

          (iii) relations with United States allies;

          (iv) other United States national security and foreign policy interests; and

          (v) countries and entities other than those on which the sanction is proposed to be imposed.

      (3) A description and assessment of--

        (A) diplomatic and other steps the United States has taken to accomplish the intended objectives of the proposed sanction;

        (B) the likelihood of multilateral adoption of comparable measures;

        (C) comparable measures undertaken by other countries;

        (D) alternative measures to promote the same objectives, and an assessment of their potential effectiveness;

        (E) any obligations of the United States under international treaties or trade agreements with which the proposed sanction may conflict;

        (F) the likelihood that the proposed sanction will lead to retaliation against United States interests, including agricultural interests; and

        (G) whether the achievement of the objectives of the proposed sanction outweighs any likely costs to United States foreign policy, national security, economic, and humanitarian interests, including any potential harm to United States business, agriculture, and consumers, and any potential harm to the international reputation of the United States as a reliable supplier of products, technology, agricultural commodities, and services.

    (f) REPORT BY THE SECRETARY OF AGRICULTURE- Prior to the imposition of a unilateral economic sanction by the President, the Secretary of Agriculture shall submit to the appropriate committees a report which shall contain an assessment of--

      (1) the extent to which any country or countries proposed to be sanctioned are markets that accounted for, in the preceding calendar year, more than 3 percent of all export sales from the United States of any agricultural commodity;

      (2) the likelihood that exports of agricultural commodities from the United States will be affected by the proposed sanction or by retaliation by any country proposed to be sanctioned, including specific commodities which are most likely to be affected;

      (3) the likely effect on incomes of producers of the specific commodities identified by the Secretary;

      (4) the extent to which the proposed sanction would permit foreign suppliers to replace United States suppliers; and

      (5) the likely effect of the prosed sanction on the reputation of United States farmers as reliable suppliers of agricultural commodities in general, and of the specific commodities identified by the Secretary.

    (g) REPORT BY THE UNITED STATES INTERNATIONAL TRADE COMMISSION- Before imposing a unilateral economic sanction, the President shall make a timely request to the United States International Trade Commission for a report on the likely short-term and long-term costs of the proposed sanction to the United States economy, including the potential impact on United States trade performance, employment, and growth, the international reputation of the United States as a reliable supplier of products, agricultural commodities, technology, and services, and the economic well-being and international competitive position of United States industries, firms, workers, farmers, and communities.

    (h) WAIVER IN CASE OF NATIONAL EMERGENCY- The President may waive any of the requirements of subsections (a), (b), (c), (e), (f), and (g), in the event that the President determines that there exists a national emergency that requires the exercise of the waiver. In the event of such a waiver, the requirements waived shall be met during the 60-day period immediately following the imposition of the unilateral economic sanction, and the sanction shall terminate 90 days after being imposed unless such requirements are met. The President may waive any of the requirements of paragraphs (1)(B), (1)(D), and (2) of subsection (d) in the event that the President determines that the unilateral economic sanction is related to actual or imminent armed conflict involving the United States.

    (i) SANCTIONS REVIEW COMMITTEE- The President shall establish a Sanctions Review Committee to coordinate United States policy regarding unilateral economic sanctions and to provide appropriate recommendations to the President prior to decisions regarding such sanctions. The Committee shall be comprised of--

      (1) the Secretary of State;

      (2) the Secretary of the Treasury;

      (3) the Secretary of Defense;

      (4) the Secretary of Agriculture;

      (5) the Secretary of Commerce;

      (6) the Secretary of Energy;

      (7) the United States Trade Representative;

      (8) the Director of the Office of Management and Budget;

      (9) the Chairman of the Council of Economic Advisers;

      (10) the Assistant to the President for National Security Affairs; and

      (11) the Assistant to the President for Economic Policy.

    (j) INAPPLICABILITY OF OTHER PROVISIONS- This section applies notwithstanding any other provision of law.

SEC. 8. ANNUAL REPORTS.

    (a) ANNUAL REPORT- Not later than 6 months after the date of the enactment of this Act, and annually thereafter, the President shall submit to the appropriate committees a report detailing with respect to each country or entity against which a unilateral economic sanction has been imposed--

      (1) the extent to which the sanction has achieved foreign policy or national security objectives of the United States with respect to that country or entity;

      (2) the extent to which the sanction has harmed humanitarian interests in that country, the country in which that entity is located, or in other countries; and

      (3) the impact of the sanction on other national security and foreign policy interests of the United States, including relations with countries friendly to the United States, and on the United States economy.

    (b) REPORT BY THE UNITED STATES INTERNATIONAL TRADE COMMISSION- Not later than 6 months after the date of the enactment of this Act, and annually thereafter, the United States International Trade Commission shall report to the appropriate committees on the costs, individually and in the aggregate, of all unilateral economic sanctions in effect under United States law, regulation, or Executive order. The calculation of such costs shall include an assessment of the impact of such measures on the international reputation of the United States as a reliable supplier of products, agricultural commodities, technology, and services.