Senate Appropriations Committee Reports FY 2009 Appropriations Bill For ITA, BIS, USTR, ITC, Etc.

The following are the trade-relatedhighlights of S. 3182 and the Senate Appropriations Committee's (Committee's) report for S. 3182 (S. Rept. 110-397).

Although reports such as S. Rept. 110-397 do not have statutory force and departments and agencies are not legally bound by their declarations, they do explain congressional intent, and executive branch agencies take them seriously because they must justify their budget requests annually to the Appropriations Committees.

U.S. Equipment Industry Access to EU

The Committee directs the Office of the U.S. Trade Representative (USTR) to report on the status of U.S. equipment industry access to the European Community's Galileo program and European markets for related goods and services no later than April 1, 2009 in order to assess EC compliance with the 2004 U.S.-EU Agreement on GPS-Galileo Cooperation.

Byrd Amendment Disbursements, WTO Authority

The Committee made note of the World Trade Organization (WTO) Appellate Body's January 16, 2003 ruling regarding the Continued Dumping and Subsidy Offset Act (Byrd Amendment) and directs the USTR, in consultation with the Commerce Department, to continue to negotiate within the WTO to seek express recognition of the existing right of WTO members to distribute monies collected from antidumping (AD) and countervailing (CV) duties. The USTR shall consult with and provide regular reports to the Committee on this matter every 60 days upon enactment of S. 3182.

In addition, the Committee directs that negotiations be conducted within the WTO consistent with the negotiating objectives contained in the Trade Act of 2002, Public Law 107-210, to maintain strong U.S. trade remedy laws, prevent overreaching by WTO Panels and the WTO Appellate Body, and prevent the creation of obligations never negotiated or agreed to by the U.S.

FBI IPR Investigations and Prosecution

Within funds provided, the Committee urges the Federal Bureau of Investigation (FBI) to continue to make the detection, investigation, and prosecution of domestic and international intellectual property crimes an investigative priority. The Committee also urges the FBI to continue field office collaboration with the U.S. Attorneys' Computer Hacking and Intellectual Property Rights units and to continue to support the FBI Headquarters Intellectual Property Rights program coordination with the Department of Justice's Criminal Division's Computer Crime and Intellectual Property section.

Funding Restrictions

S. 3182 would restrict certain funding from being used:

Transfer ATF functions - to transfer the functions, missions, or activities of the Bureau of Alcohol, Tobacco, Firearms, and Explosives to other agencies or departments in FY 2009.

Firearm exports to Canada - in connection with requiring an export license for the export to Canada of components, parts, accessories, or attachments for firearms listed in Category I, 22 CFR 121.1 (as it existed on April 1, 2005) with a total value not exceeding $500 wholesale in any transaction, provided that certain conditions are met by the exporting party for such articles.

The Committee also states that District Directors of Customs and postmasters shall permit the permanent or temporary export without a license of any unclassified articles specified above to Canada for end use in Canada or return to the U.S. or temporary import of Canadian-origin items from Canada for end use in the U.S. or return to Canada for a Canadian citizen.

The Committee further states that the President may require export licenses on a temporary basis if the President determines, upon publication in the Federal Register, that the Government of Canada has implemented or maintained inadequate import controls for the articles specified above, such that a significant diversion of such articles has and continues to take place for use in international terrorism or in the escalation of a conflict in another nation. The President shall terminate the license requirements when reasons for the temporary requirements have ceased. (See Section 520 of H.R. 3182 for complete details on this provision.)

Patents in new trade agreements- to include in any new bilateral or multilateral agreement the text of:

paragraph 2 of article 16.7 (patents) of the U.S.-Singapore Free Trade Agreement (FTA);

paragraph 4 of article 17.9 (patents) of the U.S.-Australia FTA; or

paragraph 4 of article 15.9 (patents) of the U.S.-Morocco FTA.

Promote tobacco sales, exports - to promote the sale or export of tobacco or tobacco products, or to seek the reduction or removal by any foreign country of restrictions on the marketing of tobacco or tobacco products, except for restrictions that are not applied equally to all tobacco or tobacco products of the same type.

Permits for "curios or relics" - pay administrative expenses or the compensation of any officer or employee of the U.S. to deny any application submitted pursuant to 22 USC 2778(b)(1)(B) and qualified pursuant to 27 CFR 478.112 or .113, for a permit to import U.S. origin ''curios or relics'' firearms, parts, or ammunition.

Inconsistencies with U.S. negotiating objectives - used in a manner that is inconsistent with the principal negotiating objective of the U.S. with respect to trade remedy laws to preserve the ability of the U.S.:

to enforce vigorously its trade laws, including AD, CV duty, and safeguard laws;

to avoid agreements that (a) lessen the effectiveness of domestic and international disciplines on unfair trade, especially dumping and subsidies; or (b) lessen the effectiveness of domestic and international safeguard provisions, in order to ensure that U.S. workers, agricultural producers, and firms can compete fully on fair terms and enjoy the benefits of reciprocal trade concessions; and

to address and remedy market distortions that lead to dumping and subsidization, including overcapacity, cartelization, and market-access barriers.

ITA, BIS, ITC, and USTR FY 2009 Funding

H.R. 3182 would provide FY 2009 funding in the following amounts:

International Trade Administration - $429,870,000, of which $1,400,000 would be for the promotion of trade and the enhancement of the textile industry;

Bureau of Industry and Security - $83,676,000, of which $14,767,000 would be for inspections and other activities related to national security;

International Trade Commission - $75,000,000; and

Office of the U.S. Trade Representative - $46,272,000.

S. 3182 available at http://frwebgate.access.gpo.gov/cgi-bin/getdoc.cgi?dbname=110_cong_bills&docid=f:s3182pcs.txt.pdf.

Senate Appropriations Committee report (S. Rept. 110-397) available at http://frwebgate.access.gpo.gov/cgi-bin/getdoc.cgi?dbname=110_cong_reports&docid=f:sr397.110.pdf.