19 U.S.C. § 2905: Accession of state trading…

Summary

Before a major foreign country joins GATT 1947 or the WTO after August 23, 1988, the President must decide two things. First, are government-owned trading firms a large part of that country’s exports or of the goods that compete with imports there? Second, do those firms harm or likely harm U.S. trade or the U.S. economy? The President must publish these decisions in the Federal Register. If both answers are yes, the United States can refuse to apply GATT/WTO rules with that country until one of two things happens. Either the foreign country agrees that its government trading firms will buy and sell based on normal business reasons (for example, price, quality, availability, marketability, and transportation) and will give U.S. companies a fair chance to compete, or Congress passes a law approving the extension. The President may send a draft approval bill to Congress; it must be introduced by each chamber’s majority leader on the first day that chamber meets and gets handled under the fast-track rules in section 2191. GATT 1947 means the 1947 General Agreement on Tariffs and Trade. WTO Agreement means the April 15, 1994 agreement creating the World Trade Organization and the related multilateral trade agreements.

Title 19, §2905

Customs Duties, Source: USLM XML via OLRC

(a)In general

Before any major foreign country accedes, after August 23, 1988, to the GATT 1947, or to the WTO Agreement, the President shall determine—

(1)whether state trading enterprises account for a significant share of—

(A)the exports of such major foreign country, or

(B)the goods of such major foreign country that are subject to competition from goods imported into such foreign country; and

(2)whether such state trading enterprises—

(A)unduly burden and restrict, or adversely affect, the foreign trade of the United States or the United States economy, or

(B)are likely to result in such a burden, restriction, or effect.

(b)Effects of affirmative determination

If both of the determinations made under paragraphs (1) and (2) of subsection (a) with respect to a major foreign country are affirmative—

(1)the President shall reserve the right of the United States to withhold extension of the application of the GATT 1947 or the WTO Agreement, between the United States and such major foreign country, and

(2)the GATT 1947 or the WTO Agreement shall not apply between the United States and such major foreign country until—

(A)such foreign country enters into an agreement with the United States providing that the state trading enterprises of such foreign country—

(i)will—

(I)make purchases which are not for the use of such foreign country, and

(II)make sales in international trade,

in accordance with commercial considerations (including price, quality, availability, marketability, and transportation), and (ii)

(B)a bill submitted under subsection (c) which approves of the extension of the application of the GATT 1947 or the WTO Agreement between the United States and such major foreign country is enacted into law.

(c)Expedited consideration of bill to approve extension

(1)The President may submit to the Congress any draft of a bill which approves of the extension of the application of the GATT 1947 or the WTO Agreement between the United States and a major foreign country.

(2)Any draft of a bill described in paragraph (1) that is submitted by the President to the Congress shall—

(A)be introduced by the majority leader of each House of the Congress (by request) on the first day on which such House is in session after the date such draft is submitted to the Congress; and

(B)shall be treated as an implementing bill for purposes of subsections (d), (e), (f), and (g) of section 2191 of this title.

(d)Publication

The President shall publish in the Federal Register each determination made under subsection (a).

(e)Definitions

For purposes of this section: (1)

(2)The term “WTO Agreement” means the Agreement Establishing the World Trade Organization entered into on April 15, 1994 and the multilateral trade agreements (as such term is defined in section 3501(4) of this title).

Notes & Related Subsidiaries

Editorial Notes

Amendments

1996—Pub. L. 104–295 substituted “or WTO” for “for WTO” in section catchline. 1994—Pub. L. 103–465, § 621(a)(4)(D), inserted “for WTO” after “Trade” in section catchline. Subsec. (a). Pub. L. 103–465, § 621(a)(4)(A), substituted “the GATT 1947, or to the WTO Agreement,” for “the GATT” in introductory provisions. Subsecs. (b), (c). Pub. L. 103–465, § 621(a)(4)(B), inserted “1947 or the WTO Agreement” after “the GATT” wherever appearing. Subsec. (e). Pub. L. 103–465, § 621(a)(4)(C), added subsec. (e).

Statutory Notes and Related Subsidiaries

Effective Date

of 1994 AmendmentAmendment by Pub. L. 103–465 effective on the date on which the WTO Agreement enters into force with respect to the United States (Jan. 1, 1995), see section 621(b) of Pub. L. 103–465, set out as a note under section 1677k of this title.

Executive Documents

Delegation of Functions For delegation of certain functions of President under this section to United States Trade Representative, see section 1–101 of Ex. Ord. No. 12661, Dec. 27, 1988, 54 F.R. 779, set out as a note under section 2901 of this title. Presidential Documents Regarding State Trading Enterprises The following presidential documents related to determinations under subsec. (a) of this section: China.—Memorandum of President of the United States, Nov. 9, 2001, 66 F.R. 57357. Russia.—Memorandum of President of the United States, Dec. 15, 2011, 76 F.R. 79023. Saudi Arabia.—Memorandum of President of the United States, Nov. 10, 2005, 70 F.R. 69419. Taiwan, Penghu, Kinmen, and Matsu.—Memorandum of President of the United States, Nov. 9, 2001, 66 F.R. 57359. Ukraine.—Determination of President of the United States, No. 2008–17, Mar. 28, 2008, 73 F.R. 17879. Vietnam.—Memorandum of President of the United States, Nov. 6, 2006, 71 F.R. 66223.

§2905 Accession of State Trading Regimes to General Agreement on Tariffs and Trade or Wto