text: SECTION 1. SHORT TITLE.
  
      This Act may be cited as the ``Mexican Agricultural Trade 
  Compliance Act''.
  
  SEC. 2. FINDINGS.
  
      Congress makes the following findings:
              (1) Section 301 of the Trade Act of 1974 provides that, if 
          the United States Trade Representative determines that the 
          rights of the United States under any trade agreement are being 
          denied, the Trade Representative shall take action to enforce 
          such rights.
              (2) The Statement of Administrative Action accompanying the 
          Uruguay Round Agreements Act provided that the United States 
          Trade Representative would base any section 301 determination 
          as to whether there has been a violation or denial of United 
          States rights under the Uruguay Round Agreements on panel or 
          Appellate Body findings adopted by the Dispute Settlement Body 
          of the World Trade Organization.
              (3) In a panel report adopted by the Dispute Settlement 
          Body on January 27, 2000, the Dispute Settlement Body 
          determined that section 301 of the Trade Act of 1974 is not 
          inconsistent with United States obligations under the Uruguay 
          Round Agreements, particularly in light of the decision of the 
          United States to use section 301 only after exhausting its 
          rights under the Dispute Settlement Understanding.
              (4) On January 28, 2000, a panel of the World Trade 
          Organization determined that Mexico's antidumping order on high 
          fructose corn syrup imported from the United States violated 
          Mexico's commitments under the Uruguay Round Agreements.
              (5) On February 24, 2000, the Dispute Settlement Body 
          adopted the report of the panel.
              (6) On April 10, 2000, the United States and Mexico agreed 
          to a September 22, 2000, deadline for Mexico to come into 
          compliance with the panel report as adopted by the Dispute 
          Settlement Body.
              (7) On September 20, 2000, just 2 days prior to the date 
          Mexico had agreed to come into compliance with the panel 
          report, Mexico issued a revised antidumping threat 
          determination in an obvious attempt to evade its commitment to 
          come into compliance with the panel report adopted by the 
          Dispute Settlement Body.
              (8) On June 22, 2001, a panel, convened pursuant to Article 
          21.5 of the Dispute Settlement Understanding, found that 
          Mexico's revised antidumping threat determination failed to 
          bring Mexico into compliance with its commitments under the 
          World Trade Organization.
              (9) On October 22, 2001, the Appellate Body affirmed the 
          ruling of the Article 21.5 panel and recommended that Mexico 
          come into compliance with its obligations under the World Trade 
          Organization.
              (10) On November 21, 2001, the Dispute Settlement Body 
          adopted the Appellate Body ruling that affirmed the findings of 
          the Article 21.5 panel.
              (11) On January 1, 2002, in a transparent attempt to evade 
          the determinations of the Dispute Settlement Body regarding 
          Mexico's antidumping order on high fructose corn syrup, and in 
          an affront to the rules-based system of the World Trade 
          Organization, Mexico imposed a de facto discriminatory 20 
          percent tax on soft drinks containing high fructose corn syrup, 
          the intent and effect of which is to continue Mexico's 
          antidumping order on United States high fructose corn syrup by 
          other means by restricting access to the Mexican market.
              (12) On April 20, 2002, with its discriminatory tax on soft 
          drinks containing high fructose corn syrup now in place, and in 
          a continuous event with the imposition of this tax, Mexico 
          lifted its antidumping order on high fructose corn syrup. 
          Importantly, Mexico lifted its antidumping order only after 
          ensuring that imports of United States high fructose corn syrup 
          would not enter the Mexican market due to the imposition of the 
          tax on soft drinks. Mexico's lifting of its antidumping order 
          enabled it to make the disingenuous claim that it had come into 
          compliance with the findings adopted by the Dispute Settlement 
          Body regarding Mexico's antidumping order.
              (13) The imposition of the tax on soft drinks and the 
          lifting of the antidumping order by Mexico are related aspects 
          of a unified effort by Mexico to deny the rights of the United 
          States with respect to the trade of high fructose corn syrup.
              (14) The effects of the import restrictions of Mexico's 
          antidumping order continue with even more egregious results 
          through the imposition of a 20 percent tax on high fructose 
          corn syrup. Imports of high fructose corn syrup from the United 
          States dropped from 110,893 metric tons in 2001 (the year prior 
          to the lifting of the antidumping order) to 4,868 metric tons 
          in 2002 (the first year of the tax).
              (15) The United States has exhausted proceedings under the 
          Dispute Settlement Understanding, and the Dispute Settlement 
          Body has on more than 1 occasion adopted findings adverse to 
          Mexico.
  
  SEC. 3. DEFINITIONS.
  
      In this Act:
              (1) Appellate body.--The term ``Appellate Body'' means the 
          Appellate Body established under Article 17.1 of the Dispute 
  Settlement Understanding.
              (2) Dispute settlement body.--The term ``Dispute Settlement 
          Body'' has the meaning given that term in section 121(5) of the 
          Uruguay Round Agreements Act (19 U.S.C. 3531(5)).
              (3) Dispute settlement panel; panel.--The terms ``dispute 
          settlement panel'' and ``panel'' mean a panel established 
          pursuant to Article 6 of the Dispute Settlement Understanding.
              (4) Dispute settlement understanding.--The term ``Dispute 
          Settlement Understanding'' means the Understanding on Rules and 
          Procedures Governing the Settlement of Disputes referred to in 
          section 101(d)(16) of the Uruguay Round Agreements Act (19 
          U.S.C. 3511(d)(16)).
              (5) GATT 1994.--The term ``GATT 1994'' has the meaning 
          given such term in section 2(1)(B) of the Uruguay Round 
          Agreements Act (19 U.S.C. 3501(1)(B).
              (6) Uruguay round agreements.--The term ``Uruguay Round 
          Agreements'' has the meaning given such term in section 2(7) of 
          the Uruguay Round Agreements Act (19 U.S.C. 3501(7).
              (7) World trade organization.--The term ``World Trade 
          Organization'' means the organization established pursuant to 
          the WTO Agreement.
              (8) WTO agreement.--The term ``WTO Agreement'' means the 
          Agreement Establishing The World Trade Organization entered 
          into on April 15, 1994.
  
  SEC. 4. ENFORCEMENT OF UNITED STATES RIGHTS UNDER THE URUGUAY ROUND 
                AGREEMENTS AND OTHER TRADE AGREEMENTS WITH RESPECT TO 
                HIGH FRUCTOSE CORN SYRUP EXPORTED TO MEXICO.
  
      (a) Determination.--Congress determines that--
              (1) the rights of the United States under the Uruguay Round 
          Agreements are being denied by Mexico in connection with the 
          imposition by Mexico of a 20 percent tax on soft drinks 
          containing high fructose corn syrup, an extension by other 
          means of Mexico's unjustified antidumping order on high 
          fructose corn syrup from the United States;
              (2) the United States has exhausted proceedings under the 
          Dispute Settlement Understanding;
              (3) Mexico's imposition of a tax on high fructose corn 
          syrup, an extension by other means of its unjustified 
          antidumping order on high fructose corn syrup from the United 
          States--
                      (A) constitutes an act, policy, or practice by 
                  Mexico that is unjustifiable and burdens or restricts 
                  United States commerce for purposes of section 
                  304(a)(1) of the Trade Act of 1974 (19 U.S.C. 
                  2414(a)(1)); and
                      (B) denies rights to which the United States is 
                  entitled under existing trade agreements with Mexico 
                  for purposes of such section 304; and
              (4) unless, a certification described in subsection (b) is 
          submitted, the United States Trade Representative shall take 
          appropriate action under subsection (c).
      (b) Certification.--The certification described in this subsection 
  means a certification from the United States Trade Representative 
  submitted to Congress not later than 30 days after the date of 
  enactment of this Act that states that Mexico has eliminated its tax on 
  soft drinks containing high fructose corn syrup and is taking 
  satisfactory measures to preserve the rights of the United States under 
  all applicable trade agreements with respect to high fructose corn 
  syrup.
      (c) Action To Be Taken by USTR.--If a certification is not made 
  under subsection (b), the United States Trade Representative, not later 
  than 60 days after the date of enactment of this Act and after 
  consultation with the Committee on Finance of the Senate and the 
  Committee on Ways and Means of the House of Representatives, shall, 
  pursuant to section 301(c)(1) (A) and (B) of the Trade Act of 1974 (19 
  U.S.C. 2411(c)(1) (A) and (B))--
              (1) suspend, withdraw, or prevent the application of, 
          benefits of trade agreement concessions to carry out a trade 
          agreement with Mexico; or
              (2) impose duties or other import restrictions on the goods 
          of Mexico, including agricultural products imported from 
          Mexico, and notwithstanding any other provision of law, fees or 
          restrictions on the services of, Mexico for such time as the 
          Trade Representative determines appropriate.
target: Mexican Agricultural Trade Compliance Act - Determines that U.S. rights under the Uruguay Round Agreements are being denied by Mexico in connection with Mexico's imposition of a 20 percent tax on soft drinks containing high fructose corn syrup, an extension of Mexico's unjustified antidumping order on high fructose corn syrup from the United States. Directs the U.S. Trade Representative, unless certifying to Congress within 30 days after the enactment of this Act that Mexico has eliminated such tax and is otherwise preserving all U.S. trade agreement rights with respect to high fructose corn syrup, to either: (1) suspend, withdraw, or prevent the application of benefits of trade agreement concessions to carry out a trade agreement with Mexico; or (2) impose duties or other import restrictions on the goods of Mexico, and fees or restrictions on the services of Mexico.
feat_title: A bill to direct the United States Trade Representative to enforce United States rights, under certain trade agreements with respect to Mexico, pursuant to title III of the Trade Act of 1974.