article: SECTION 1. SHORT TITLE. This Act may be cited as the ``United States-Turkey Free Trade Agreement Act of 1999''. SEC. 2. FINDINGS. Congress makes the following findings: (1) The Republic of Turkey (in this Act referred to as ``Turkey'') has played an important strategic, political, and economic role in Europe, Asia, and the Middle East since its founding in 1923 by Mustafa Kemal ``Ataturk'' following the collapse of the 600-year Ottoman Empire. (2) The friendship shared between the United States and Turkey dates to the late 18th century and was consecrated by the Treaty of Commerce and Navigation between the United States and the Ottoman Empire in 1830. (3) The United States reaffirmed its relationship with Turkey by entering into the Treaty of Commerce and Navigation of 1929. (4) The United States and Turkey have subsequently entered into over 60 treaties, memoranda of understanding, and other agreements on a broad range of issues, including a bilateral investment treaty (1986), a bilateral tax treaty (1998), and a trade and investment framework agreement (1999), as evidence of their strong friendship. (5) Turkey is located in the strategic corridor between Europe and Asia, bordering the Black Sea and the Mediterranean Sea. (6) Turkey has been a strategic partner of the United States since it joined the allies at the end of World War II. (7) The strategic alliance between Turkey and the United States was cemented by-- (A) the agreement of July 12, 1947 implementing the Truman doctrine; (B) Turkey's membership in the North Atlantic Treaty Organization (NATO) in 1952; and (C) the United States-Turkey Agreement for Cooperation on Defense and Economy of 1980. (8) Turkey is also an important industrialized economy and was a founding member of the Organization for Economic Cooperation and Development (OECD) and the United Nations. (9) Turkey has made significant progress since the 1980's in liberalizing its economy and integrating with the global economy. (10) Turkey has joined other nations in advocating an open trading system through its membership in the General Agreement on Tariffs and Trade and the World Trade Organization. (11) Despite the deep friendship between the United States and Turkey, their trading relationship remains small. (12) In 1998, United States merchandise exports to Turkey reached $3,500,000,000. (13) In 1998, United States imports from Turkey totaled $2,500,000,000 or less than 0.3 percent of United States total imports. (14) A free trade agreement between the United States and Turkey would greatly benefit both the United States and Turkey by expanding their commercial ties. SEC. 3. NEGOTIATING OBJECTIVES FOR A UNITED STATES-TURKEY FREE TRADE AGREEMENT. The overall trade negotiating objectives of the United States with respect to a United States-Turkey Free Trade Agreement are to obtain-- (1) more open, equitable, and reciprocal market access between the United States and Turkey; and (2) the reduction or elimination of barriers and other trade-distorting policies and practices that inhibit trade between the United States and Turkey. SEC. 4. NEGOTIATION OF A UNITED STATES-TURKEY FREE TRADE AGREEMENT. (a) In General.--Subject to sections 5 and 6, the President is authorized to enter into an agreement described in subsection (c). The provisions of section 151(c) of the Trade Act of 1974 (19 U.S.C. 2191(c)) shall apply with respect to a bill to implement such agreement if such agreement is entered into on or before December 31, 2005. (b) Tariff Proclamation Authority.-- (1) In general.--The President is authorized to proclaim-- (A) such modification or continuation of any existing duty, (B) such continuance of existing duty-free or excise treatment, or (C) such additional duties as the President determines to be required or appropriate to carry out the trade agreement described in subsection (c). (2) Limitations.--No proclamation may be made under paragraph (1) that-- (A) reduces any rate of duty (other than a rate of duty that does not exceed 5 percent ad valorem on the date of enactment of this Act) to a rate which is less than 50 percent of the rate of such duty that applies on such date of enactment; (B) provides for a reduction of duty on an article to take effect on a date that is more than 10 years after the first reduction that is proclaimed to carry out a trade agreement with respect to such article; or (C) increases any rate of duty above the rate that applied on the date of enactment of this Act. (3) Aggregate reduction; exemption from staging.-- (A) Aggregate reduction.--Except as provided in subparagraph (B), the aggregate reduction in the rate of duty on any article which is in effect on any day pursuant to a trade agreement entered into under paragraph (1) shall not exceed the aggregate reduction which would have been in effect on such day if-- (i) a reduction of 3 percent ad valorem or a reduction of one-tenth of the total reduction, whichever is greater, had taken effect on the effective date of the first reduction proclaimed under paragraph (1) to carry out such agreement with respect to such article; and (ii) a reduction equal to the amount applicable under clause (i) had taken effect at 1-year intervals after the effective date of such first reduction. (B) Exemption from staging.--No staging under subparagraph (A) is required with respect to a rate reduction that is proclaimed under paragraph (1) for an article of a kind that is not produced in the United States. The United States International Trade Commission shall advise the President of the identity of articles that may be exempted from staging under this subparagraph. (4) Rounding.--If the President determines that such action will simplify the computation of reductions under paragraph (3), the President may round an annual reduction by the lesser of-- (A) the difference between the reduction without regard to this paragraph and the next lower whole number; or (B) one-half of 1 percent ad valorem. (5) Other limitations.--A rate of duty reduction or increase that may not be proclaimed by reason of paragraph (2) may take effect only if a provision authorizing such reduction or increase is included within an implementing bill provided for under section 6(c) and that bill is enacted into law. (c) Agreement Described.--An agreement described in this subsection means a bilateral agreement between the United States and Turkey that provides for the reduction and ultimate elimination of tariffs and nontariff barriers to trade and the eventual establishment of a free trade agreement between the United States and Turkey. SEC. 5. CONSULTATIONS WITH CONGRESS ON NEGOTIATIONS OF A UNITED STATES- TURKEY FREE TRADE AGREEMENT. Before entering into any trade agreement under section 4 (including immediately before initialing an agreement), the President shall consult closely and on a timely basis on the nature of the agreement and the extent to which it will achieve the purposes of this Act with-- (1) the Committee on Ways and Means of the House of Representatives and the Committee on Finance of the Senate; (2) the congressional advisers for trade policy and negotiations appointed under section 161 of the Trade Act of 1974 (19 U.S.C. 2211); and (3) each other committee of the House of Representatives and the Senate, and each joint committee of Congress, which has jurisdiction over legislation involving subject matters that would be affected by the trade agreement. SEC. 6. IMPLEMENTATION OF UNITED STATES-TURKEY FREE TRADE AGREEMENT. (a) Notification and Submission.--Any agreement entered into under section 4 shall enter into force with respect to the United States if (and only if)-- (1) the President, at least 60 calendar days before the day on which the President enters into the trade agreement, notifies the House of Representatives and the Senate of the President's intention to enter into the agreement, and promptly thereafter publishes notice of such intention in the Federal Register; (2) within 60 calendar days after entering into the agreement, the President submits to Congress a description of those changes to existing laws that the President considers would be required in order to bring the United States into compliance with the agreement; (3) after entering into the agreement, the President submits a copy of the final legal text of the agreement, together with-- (A) a draft of an implementing bill described in subsection (c); (B) a statement of any administrative action proposed to implement the trade agreement; and (C) the supporting information described in subsection (b); and (4) the implementing bill is enacted into law. (b) Supporting Information.--The supporting information required under subsection (a)(3)(C) consists of-- (1) an explanation as to how the implementing bill and proposed administrative action will change or affect existing law; and (2) a statement-- (A) asserting that the agreement makes progress in achieving the objectives of this Act; and (B) setting forth the reasons of the President regarding-- (i) how and to what extent the agreement makes progress in achieving the objectives referred to in subparagraph (A); (ii) whether and how the agreement changes provisions of an agreement previously negotiated; (iii) how the agreement serves the interests of United States commerce; and (iv) any proposed administrative action. (c) Bills Qualifying for Trade Agreement Approval Procedures.--The provisions of section 151 of the Trade Act of 1974 apply to an implementing bill submitted pursuant to subsection (b) that contains only-- (1) provisions that approve a trade agreement entered into under section 4 that achieves the negotiating objectives set forth in section 3 and the statement of administrative action (if any) proposed to implement such trade agreement; (2) provisions that are-- (A) necessary to implement such agreement; or (B) otherwise related to the implementation, enforcement, and adjustment to the effects of such trade agreement; and (3) provisions necessary for purposes of complying with section 252 of the Balanced Budget and Emergency Deficit Control Act of 1985 in implementing the applicable trade agreement. SEC. 7. CONSIDERATION OF IMPLEMENTING BILL. (a) Congressional Consideration of Implementing Bill.--When the President submits to Congress a bill to implement the trade agreement as described in section 6(c), the bill shall be introduced and considered pursuant to the provisions of section 151 of the Trade Act of 1974 (19 U.S.C. 2191). (b) Conforming Amendments.--Section 151 of the Trade Act of 1974 (19 U.S.C. 2191) is amended-- (1) in subsection (b)(1), by inserting ``section 6 of the United States-Turkey Free Trade Agreement Act of 1999'' after ``the Omnibus Trade and Competitiveness Act of 1988,''; and (2) in subsection (c)(1), by inserting ``or under section 6 of the United States-Turkey Free Trade Agreement Act of 1999,'' after ``the Uruguay Round Agreements Act,''.
summary: Authorizes the President to enter into a bilateral agreement between the United States and Turkey that provides for the reduction and ultimate elimination of tariffs and nontariff barriers to trade and the eventual establishment of a free trade agreement between the two countries. Requires the President to consult with Congress before entering into any trade agreement under this Act. Sets forth congressional procedures for consideration of implementing legislation with respect to a United States-Turkey Free Trade Agreement.