Text: House Panel Reports Out Adversely China, Vietnam Resolutions
(Panel also votes to extend sanctions against Iran, Libya)Two resolutions offered by Representative Dana Rohrabacher (Republican of California) to deny Normal Trade Relations (NTR) status to China and funding from international financial institutions to Vietnam were reported out "adversely" by the House Ways and Means Committee July 12.
House Joint Resolution 50 (H.J. Res. 50) and House Joint Resolution 55 (H.J. Res. 55), which would deny President Bush's request to waive Jackson-Vanik provisions for China and Vietnam respectively, were both reported out of the committee by voice vote.
Because China and Vietnam are considered non-market economies, the President must annually request waivers of the Jackson-Vanik provisions to the Trade Act of 1974 -- and both the Senate and the House of Representatives must approve those waiver requests -- for those countries to receive non-discriminatory treatment for their products.
Although the House Ways and Means Committee voted against the resolutions, they must still be considered by the full House of Representatives.
By law, the House Ways and Means Committee must report a resolution of waiver disapproval within 30 calendar days after its introduction or the measure will go automatically to the full House of Representatives for consideration after that period. Rohrabacher introduced H.J. Res. 50 June 5 and H.J. Res. 55 on June 21.
On the floor of the House, a motion to proceed to the consideration of such a resolution is "highly privileged" and is "not debatable," according to the Trade Act of 1974. Moreover, lawmakers may not submit amendments to the motion, except to change country names, and floor debate is limited to 20 hours.
Resolutions that have been reported out adversely by committees rarely succeed when brought to a vote in the full House of Representatives. The House has never voted in support of any resolution to deny China or Vietnam a waiver to the Jackson-Vanik provisions of the Trade Act of 1974.
On July 12 the House Ways and Means Committee also reported favorably H.R. 1954, the "Iran and Libya Sanctions Extension Act of 2001" (ILSA), with amendment by voice vote.
The bill would extend the Act for an additional five years and would require the President to submit a report within 18 months of the enactment of H.R. 1954 containing "an assessment of the effectiveness of the actions taken to achieve the Act's objectives, as well as any other U.S. foreign policy or national security objectives with respect to Iran and Libya."
Following is the text of the July 13 report of the House Ways and Means Committee:
(begin text)
FROM THE COMMITTEE ON WAYS AND MEANS
FOR IMMEDIATE RELEASE
July 13, 2001Thomas Announces Committee Action on Three International Trade Bills:
H.J. Res. 50, H.J. Res. 55, and H.R. 1954Congressman Bill Thomas (R-CA), Chairman of the Committee on Ways and Means, today announced that on Thursday, July 12, 2001, the Committee ordered adversely reported, without amendment, H.J. Res. 50 and H.J. Res. 55, disapproving the extensions of the waiver authority contained in section 402(c) of the Trade Act of 1974 with respect to the People's Republic of China and Vietnam, respectively, by voice vote.
The Committee also favorably reported H.R. 1954, the "Iran and Libya Sanctions Extension Act of 2001" (ILSA) with amendment, by voice vote. The bill would extend the Act for an additional 5 years, and require the President to submit a report within 18 months of the enactment of H.R. 1954 that contains an assessment of the effectiveness of the actions taken to achieve the Act's objectives, as well as any other U.S. foreign policy or national security objectives with respect to Iran and Libya.
BACKGROUND AND DESCRIPTION OF H.J. RES. 55:
Vietnam's trade status is subject to the Jackson-Vanik provisions in Title IV of the Trade Act of 1974. Title IV sets forth three requirements relating to freedom of emigration which must be met or waived by the President in order for a nonmarket economy country to gain access to U.S. Government credits, or credit or investment guarantees, and be granted Normal Trade Relations (NTR) status. On June 1, 2001, the President issued an extension of the waiver from the Jackson-Vanik freedom of emigration requirements for Vietnam (H. Doc. 107-82).
The President's waiver of the freedom of emigration requirements for Vietnam currently gives U.S. exporters doing business in Vietnam access to U.S. Government credits, or credit or investment guarantees, such as those administered by the Overseas Private Investment Corporation, the Export-Import Bank, and U.S. Department of Agriculture, provided that Vietnam meets the relevant program criteria.
The President's waiver authority expires at midnight on July 2 of each year and may be extended on an annual basis upon a Presidential determination and report to Congress that such extension will substantially promote the freedom of emigration objectives in the Act. The waiver authority continues in effect unless disapproved by the Congress, either generally or with respect to a specific country, within 60 calendar days after the expiration of the existing authority.
H.J. Res. 55 was introduced by Representative Rohrabacher (R-CA) on June 21, 2001, and states that Congress does not approve the extension of the authority contained in section 402(c) of the Trade Act of 1974 as recommended by the President to Congress on June 1, 2001, with respect to Vietnam. The effect of this resolution would be to withdraw the President's Jackson-Vanik waiver with respect to Vietnam, and thereby denying U.S. exporters doing business in Vietnam access to U.S. Government credits, credit or investment guarantees.
BACKGROUND AND DESCRIPTION OF H.J. RES. 50:
The Jackson-Vanik provisions of the Trade Act of 1974 also govern the extension of NTR to the People's Republic of China. NTR status was first granted to the People's Republic of China on February 1, 1980, and has been renewed annually since then on the basis of a Presidential waiver of the freedom of emigration requirements. A valid trade agreement, as required by Jackson-Vanik, has remained in force during that time. On June 1, 2001, the President announced his intention to waive the freedom of emigration requirements with respect to the People's Republic of China for another year, beginning July 3, 2001 (H. Doc. 107-79).
H.J. Res. 50 was introduced on June 5, 2001, by Rep. Rohrabacher (R-CA). H.J. Res. 50 states that the Congress does not approve the extension of the waiver authority contained in section 402 (c) of the Trade Act of 1974, recommended by the President to the Congress on June 1, 2001, with respect to the People's Republic of China, for the period beginning July 3, 2001, through July 2, 2002. The effect of this Resolution would be to withdraw NTR to the products of China.
BACKGROUND OF H.R. 1954:
The Iran and Libya Sanctions Act, enacted on August 5, 1996 (P.L. 104-172), mandates sanctions against foreign investment in the petroleum sectors of Iran and Libya. This law will expire on August 5, 2001. H.R. 1954 would extend the Act for an additional 5 years and would require the President to submit a report on the Act's effectiveness within 18 months after the enactment of H.R. 1954.
The Iran and Libya Sanctions Act directs the President to impose certain economic sanctions against persons who with actual knowledge have: (1) made an investment of $40 million or more in any 12-month period that directly contributes to Iran's or Libya's ability to develop its petroleum resources; or (2) exported to Libya any goods or technology prohibited by U.N. Resolutions 748 or 883, which significantly contributed to Libya's ability to acquire chemical, biological, or nuclear weapons, develop petroleum resources, or maintain its aviation capabilities. The Act also specifies exceptions to trade sanctions, among other things, for certain defense-related articles or services essential to U.S. national security.
DESCRIPTION OF H.R. 1954, AS APPROVED:
As approved, H.R. 1954 would extend the Iran and Libya Sanctions Act for five years. The bill would require a report 18 months after enactment on the effectiveness of actions taken under the Iran and Libya Sanctions Act. The report would contain an assessment of the effectiveness of the actions relating to trade taken to achieve the objectives of the Iran and Libya Sanctions Act, as well as any other U.S. foreign policy or national security objectives with respect to Iran and Libya. The reporting requirement would also instruct the Administration to examine the impact of this law on humanitarian interests and on national security, economic, and foreign policy interests of the United States, including relations with countries friendly to the United States, and on the U.S. economy. The bill would provide for the termination of the Act before the termination date at anytime after submission of the eighteen-month report upon the adoption of a joint resolution terminating the Act. The joint resolution would be subject to the expedited procedures provided in section 152 of the Trade Act of 1974.
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(Distributed by the Office of International Information Programs, U.S. Department of State. Web site: http://usinfo.state.gov)
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