text: SECTION 1. SHORT TITLE.
  
      This Act may be cited as the ``Balanced Trade Act of 2006''.
  
  SEC. 2. FINDINGS OF CONGRESS.
  
      Congress makes the following findings:
              (1) Since 1997, the United States current account deficit, 
          the broadest measure of United States international trade, has 
          grown substantially, both absolutely and relative to gross 
          domestic product (GDP), increasing from $140,400,000,000 in 
          1997 (1.7 percent of GDP) to $791,000,000,000 in 2005 (6.3 
          percent of GDP).
              (2) Strong manufacturing and agricultural sectors are 
          important to nurturing and sustaining the health and security 
          of the Nation's economy. The persistent current account deficit 
          weakens United States manufacturing and agriculture and causes 
          the loss of United States jobs. It can be estimated that the 
          2005 merchandise trade deficit cost the United States up to 
          15,000,000 jobs.
              (3) The direction and trend of the current account deficit 
          is unsustainable in the long run and needs immediate corrective 
          action.
              (4) It is critical to the Nation's economic future that the 
          current account deficit be addressed by adopting statutory 
          changes that will eliminate some of the causes of the trade 
          deficit and will begin to move the Nation to a positive trade 
          balance.
  
  SEC. 3. MANDATORY PRESIDENTIAL ACTION WHENEVER THE UNITED STATES 
                CURRENT ACCOUNT DEFICIT EXCEEDS 2 PERCENT OF THE UNITED 
                STATES GROSS DOMESTIC PRODUCT.
  
      Section 122 of the Trade Act of 1974 (19 U.S.C. 2132) is amended--
              (1) by redesignating subsections (c) through (h) as (d) 
          through (i), respectively; and
              (2) by inserting after subsection (b) the following new 
          subsection (c):
      ``(c) Mandatory Presidential Proclamation of Temporary Import 
  Surcharge Whenever the United States Current Account Deficit Exceeds 2 
  Percent of the Gross Domestic Product.--
              ``(1) In general.--Notwithstanding the provisions of 
          subsections (a) and (b), whenever there is a United States 
          current account deficit that exceeds 2 percent of the gross 
          domestic product, then--
                      ``(A) for purposes of subsection (a), the President 
                  shall determine that fundamental international payments 
                  problems do exist that require special import measures 
                  to restrict imports; and
                      ``(B) within 30 days after making that 
                  determination, the President shall proclaim, for the 
                  period described in paragraph (2), a temporary import 
                  surcharge under this subsection in the form of duties 
                  (in addition to those already imposed, if any) on 
                  articles imported into the United States.
              ``(2) Period of surcharge.--The period of the surcharge 
          proclaimed under this subsection is the period beginning on the 
          date on which the surcharge is proclaimed and ending on the 
          date on which there is not a United States current account 
          deficit, or there is a United States current account deficit 
          that does not exceed 1 percent of the gross domestic product.
              ``(3) Amount of surcharge.--
                      ``(A) Minimum.--The amount of the surcharge 
                  proclaimed under this subsection shall be not less than 
                  20 percent ad valorem.
                      ``(B) Adjustment to ensure period of not more than 
                  24 months.--Subject to subparagraph (A), the amount of 
                  the surcharge shall be adequate to ensure that the 
                  period in which the surcharge applies (as described in 
                  paragraph (2)) is not more than 24 months. Whenever the 
                  President determines that the amount of the surcharge 
                  is inadequate to ensure that the period in which the 
                  surcharge applies is not more than 24 months, the 
                  President shall increase the amount by at least 1 
                  percent.
              ``(4) Data used in making determinations.--Each 
          determination under this subsection shall be made using the 
          most recently available information for a 1-year period 
          compiled by the Bureau of Economic Analysis of the Department 
          of Commerce.
              ``(5) Exceptions.--
                      ``(A) Country exemptions.--Subsection (e)(2) 
                  applies to a surcharge proclaimed under this subsection 
                  to the same extent that it applies to an import 
                  restricting action proclaimed pursuant to subsection 
                  (a).
                      ``(B) Product exceptions.--Subsection (f) applies 
                  to a surcharge proclaimed under this subsection to the 
                  same extent that it applies to an import restricting 
                  action proclaimed pursuant to subsection (a).''.
target: Balanced Trade Act of 2006 - Amends the Trade Act of 1974 to require the President whenever there is a trade deficit that exceeds 2% of the gross domestic product (GDP) to: (1) restrict imports; and (2) proclaim, for a determined period, a temporary import surcharge of not less than 20% ad valorem on articles imported into the United States. (Currently, the President has the authority to temporarily impose import surcharges (not to exceed 15% ad valorem) and import restrictions on articles in certain situations of fundamental international payments problems.)
feat_title: To amend the Trade Act of 1974 to require the President to make a determination that a fundamental international payments problem exists and to proclaim a temporary import surcharge whenever the United States current account deficit exceeds 2 percent of the United States Gross Domestic Product.