[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[S. 918 Introduced in Senate (IS)]
103d CONGRESS
1st Session
S. 918
To amend the Trade Act of 1974 to provide trade adjustment assistance
during the implementation and phase-in of the North American Free Trade
Agreement, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
May 6 (legislative day, April 19), 1993
Mr. Roth (for himself, Mr. Durenberger, and Mr. Grassley) introduced
the following bill; which was read twice and referred to the Committee
on Finance
_______________________________________________________________________
A BILL
To amend the Trade Act of 1974 to provide trade adjustment assistance
during the implementation and phase-in of the North American Free Trade
Agreement, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE; REFERENCE.
(a) Short Title.--This Act may be cited as the ``NAFTA Worker
Adjustment Assistance Act''.
(b) Reference.--Whenever in this Act an amendment is expressed in
terms of an amendment to a section, subsection, or other provision, the
reference shall be considered to be made to a section, subsection, or
other provision of the Trade Act of 1974.
SEC. 2. ELIGIBILITY OF WORKERS AFFECTED BY NORTH AMERICAN FREE TRADE
AGREEMENT.
(a) Adjustment Assistance for Workers.--
(1) In general.--Section 222 (19 U.S.C. 2272) is amended by
adding at the end thereof the following new subsection:
``(c) Special Rule for Workers Affected by North American Free
Trade Agreement.--
``(1) In the case of a group of workers affected by the
North American Free Trade Agreement (including workers in any
agricultural firm or subdivision thereof), the Secretary shall
certify such group as eligible for adjustment assistance under
this chapter, if--
``(A) the Secretary makes the determination under
paragraphs (1) and (2) of subsection (a), and
``(B) the Secretary determines that--
``(i) increases of imports of articles like
or directly competitive with articles which are
produced by such workers' firm or appropriate
subdivision thereof, contributed importantly to
such total or partial separation, or threat
thereof, and to such decline in sales,
``(ii) the North American Free Trade
Agreement contributed importantly to a shift in
production to Mexico of articles like or
directly competitive with articles which are
produced by such workers' firm or appropriate
subdivision thereof, or
``(iii) the group of workers is employed in
the manufacture of motor vehicles in the United
States.
``(2) For purposes of this subsection, the term `North
American Free Trade Agreement' means an agreement between the
United States and Mexico (without regard to whether Canada is a
party to all or part of such agreement) which provides for the
establishment of a free trade area between the two nations
through the reduction and elimination of barriers to trade.''.
(2) Conforming amendment.--Subsection (b) of section 222
(19 U.S.C. 2272(b)) is amended by inserting ``and subsection
(c)'' after ``subsection (a)(3)''.
(b) Determinations by Secretary of Labor.--Section 223 (19 U.S.C.
2273) is amended by striking ``(a)'' and inserting ``(a)(1)'', and by
adding at the end of subsection (a) the following new paragraph:
``(2) As soon as possible after the date a notice is
received under section 239(a)(5), but in no event later than 10
working days after that date, the Secretary shall determine
if--
``(A) the group of workers is described in section
222(c)(1)(B)(iii), or
``(B)(i) there has been a shift in production to
Mexico of articles like or directly competitive with
articles which are produced by such workers' firm or
appropriate subdivision thereof, and
``(ii) the North American Free Trade Agreement
contributed importantly to such shift, and
shall issue a certification of eligibility to apply for
assistance under this chapter covering workers in any group
with respect to which such determination has been made.''.
(c) Effective Date.--The amendments made by this section shall take
effect on the day a bill implementing the North American Free Trade
Agreement is enacted into law and shall terminate on the date on which
such Agreement is fully phased in.
SEC. 3. AMENDMENTS TO TITLE II OF THE TRADE ACT OF 1974.
(a) Reemployment Services.--Section 235 (19 U.S.C. 2295) is amended
to read as follows:
``SEC. 235. EMPLOYMENT SERVICES.
``(a) In General.--The Secretary shall ensure that adversely
affected workers covered by a certification under subchapter A of this
chapter are provided early and effective reemployment assistance. Such
assistance should include--
``(1) counseling,
``(2) testing,
``(3) labor market information,
``(4) job development,
``(5) job search and placement services, and
``(6) other supportive services provided for under any
other Federal law, including services provided by a State
pursuant to title III of the Job Training Partnership Act.
``(b) Agreements With States.--The Secretary shall, whenever
appropriate, procure the services described in subsection (a) by
entering into agreements with States, and shall make available to
States such funds as may be necessary to provide such services.''.
(b) Training.--
(1) In general.--Section 236(a)(2)(A) of such Act (19
U.S.C. 2296(a)(2)(A)) is amended by striking ``$80,000,000''
and inserting ``$120,000,000''.
(2) Effective date.--The amendment made by paragraph (1)
shall apply to the first fiscal year after the fiscal year in
which the United States enters into the North American Free
Trade Agreement, and to each fiscal year thereafter.
(c) Agreements With States.--
(1) Section 239(a) (19 U.S.C. 2311(a)) is amended--
(A) by striking ``and (4)'' and inserting ``(4)'',
and
(B) by striking the period at the end thereof and
inserting ``, and (5) will notify the Employment and
Training Administration of any notice received under
the Worker Adjustment and Retraining Notification Act
within 5 working days after receiving such notice.''.
(2) Section 239 (19 U.S.C. 2311) is amended by adding at
the end thereof the following new subsection:
``(g) Reporting.--
``(1) Any agreement entered into under this section shall
provide for the establishment of a standardized system for
reporting the operation and effectiveness of the State program
during the preceding year.
``(2) Reports under this subsection shall be submitted by
the States to the Secretary on an annual basis.''.
SEC. 4. FUNDING FOR NAFTA WORKER ADJUSTMENT ASSISTANCE.
(a) Temporary Imposition of De Minimus Worker Adjustment Fee.--The
President shall make a determination of the amount necessary to fund
worker assistance programs under chapter 2 of title II of the Trade Act
of 1974 for workers described in section 222(c) of such Act and shall
negotiate an agreement as part of the supplemental agreements to the
North American Free Trade Agreement for the imposition by the United
States of a de minimus uniform fee on all articles imported into the
United States from Mexico. Such fee shall--
(1) be used to fund programs which assist United States
workers experiencing dislocation as a result of the
implementation and operation of the North American Free Trade
Agreement,
(2) take effect on the date that is 30 days after the date
a bill implementing the North American Free Trade Agreement is
enacted into law, and
(3) expire on the date which is 30 days after the date on
which such Agreement is fully phased in.
(b) Part of Revenues To Fund Trade Adjustment Assistance.--If the
President is unable to negotiate the imposition of a de minimus uniform
fee pursuant to subsection (a), the President shall determine the
amount necessary to fund the programs described in such subsection and
shall designate a portion of the tariffs imposed on articles imported
from Mexico sufficient to fund such programs. Such amount shall be
transferred to the Trade Adjustment Assistance Trust Fund (established
under section 286 of the Trade Act of 1974). In negotiating the
elimination of tariffs under the North American Free Trade Agreement,
the President shall assure revenues from such tariffs are adequate to
provide assistance to United States workers who are dislocated as a
result of such Agreement.
(c) Special Safeguard Provisions.--Any increase in duties under any
special safeguard provision in the North American Free Trade Agreement,
which are imposed to remedy injury to United States industries
resulting from increased imports, shall be transferred to the Trade
Adjustment Assistance Trust Fund.
SEC. 5. CONFORMING AMENDMENTS TO TRADE ADJUSTMENT ASSISTANCE TRUST
FUND.
(a) In General.--Section 286(b)(1) of the Trade Act of 1974 (19
U.S.C. 2396(b)(1)) is amended by striking ``the duty imposed by section
287'' and inserting ``any fees imposed or duties collected pursuant to
section 4 of the NAFTA Worker Adjustment Assistance Act.''.
(b) Availability of Amounts in Trust Fund; Authorization.--
Subsections (d) and (e) of section 286 (19 U.S.C. 2396) are amended to
read as follows:
``(d) Availability of Amounts in Treasury.--
``(1) Amounts in the Trust Fund shall be available as
provided in appropriation Acts for expenditures that are
required to carry out the provisions of chapter 2 with respect
to workers described in section 222(c) (including
administrative costs) and for payments required under
subsection (e)(2).
``(2)(A) If the total amount of funds expended in any
fiscal year to carry out chapter 2 with respect to such workers
(including administrative costs) exceeds the amount collected
under section 4 of the NAFTA Worker Adjustment Assistance Act
during the preceding 1-year period, the Secretary of Labor and
the Secretary of Commerce (in consultation with the Secretary
of the Treasury) shall make a pro rata reduction in the amount
of trade adjustment allowances that are paid under sections 231
through 234 to such workers.
``(B) The reduction shall be--
``(i) based on estimates of the amount of funds
that will be necessary to carry out chapter 2 and the
amount of revenue that will be raised by section 4 of
the NAFTA Worker Adjustment Assistance Act during the
remainder of such fiscal year and the succeeding fiscal
year,
``(ii) made in a manner that ensures that all
workers eligible for assistance under section 222(c)
receive some assistance under such chapter 2, and
``(iii) made in a manner that ensures that the
expenditures for such assistance during the remainder
of the fiscal year and the succeeding fiscal year do
not exceed the amount of funds available in the Trust
Fund.
``(C) No reduction may be made under this paragraph in the
amount of trade readjustment allowance payable under sections
231 through 234 to a worker who--
``(i) is described in section 222(c), and
``(ii) received a trade readjustment allowance
under sections 231 through 234 for the week preceding
the first week for which a reduction is otherwise being
made under this paragraph.
``(D) If a pro rata reduction is in effect at the close of
a fiscal year, the Secretary of Labor and the Secretary of
Commerce, in consultation with the Secretary of the Treasury,
may adjust or modify such reduction at the beginning of the
fiscal year succeeding such fiscal year, based on estimates of
the amount of funds that will be necessary to carry out chapter
2 with respect to workers described in section 222(c), and of
the amount of revenue that will be raised by section 4 of the
NAFTA Worker Adjustment Assistance Act during the succeeding
fiscal year.
``(E) Any pro rata reduction made under subparagraph (A),
and any pro rata reduction which is adjusted or modified under
subparagraph (D), shall cease to apply after the week in
which--
``(i) a 1-year period ends during which the total
amount of funds that would have been expended to carry
out chapter 2 with respect to workers described in
section 222(c) (including administrative costs), if
such reduction were not in effect, did not exceed an
amount equal to the total amount collected under
section 4 of the NAFTA Worker Adjustment Assistance Act
during such 1-year period, or
``(ii) the Secretary of Labor and the Secretary of
Commerce, in consultation with the Secretary of the
Treasury, determine that the amount of funds available
in the Trust Fund are sufficient to carry out chapter 2
with respect to workers described in section 222(c)
without such reduction.
``(e) Authorization of Appropriations; Repayable Advances.--
``(1)(A) There are authorized to be appropriated to the
Trust Fund, as repayable advances, such sums as may from time
to time be necessary to make the expenditures described in
subsection (d)(1).
``(B) Any advance appropriated to the Trust Fund under
subparagraph (A) may be paid to the Trust Fund only to the
extent that the total amount of advances paid during the fiscal
year to the Trust Fund from any appropriation authorized under
subparagraph (A) that are outstanding after such advance is
paid to the Trust Fund does not exceed the lesser of--
``(i) the excess of--
``(I) the total amount of funds that the
Secretary of the Treasury (in consultation with
the Secretary of Labor and the Secretary of
Commerce) estimates will be necessary for the
payments and expenditures described in
subsection (d)(1) for such fiscal year, over
``(II) the total amount of funds that the
Secretary of the Treasury estimates will be
available in the Trust Fund during the fiscal
year (determined without regard to any advances
made under this subsection during such fiscal
year), or
``(ii) the excess of--
``(I) an amount equal to the total amount
the Secretary of the Treasury estimates will be
collected under section 4 of the NAFTA Worker
Adjustment Assistance Act during such fiscal
year, over
``(II) the amount described in clause
(i)(II).
``(2) Advances made to the Trust Fund from appropriations
authorized under paragraph (1)(A) shall be repaid, and interest
on such advances shall be paid, to the general fund of the
Treasury of the United States when the Secretary of the
Treasury determines that sufficient funds are available in the
Trust Fund for such purposes.
``(3) Interest on advances made from appropriations
authorized under paragraph (1)(A) shall be at a rate determined
by the Secretary of the Treasury (as of the close of the
calendar month preceding the month in which the advance is
made) to be equal to the current average market yield on
outstanding marketable obligations of the United States with
remaining periods to maturity comparable to the anticipated
period during which the advance will be outstanding.''.
(c) Effective Date.--Section 1430(c) of the Omnibus Trade and
Competitiveness Act of 1988 (19 U.S.C. 2397 note) is amended by
striking ``the first date'' and all that follows through the end period
and inserting ``the day on which a bill implementing the North American
Free Trade Agreement is enacted into law.''.
SEC. 6. EXTENSION OF SUNSET.
Subsection (b) of section 285 (19 U.S.C. 2271, preceding note) is
amended by striking ``no duty shall be imposed under section 287, after
September 30, 1993'' and inserting ``no fee shall be imposed under
section 4 of the NAFTA Worker Adjustment Assistance Act after September
30, 1998''.
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