Trading System Preservation Act
This bill authorizes the President to enter into covered plurilateral trade agreements. Covered plurilateral trade agreement refers to a sector-specific agreement within the framework of the World Trade Organization (WTO) involving foreign countries or foreign territories that form a subset of the members of the WTO that does not extend benefits on a most-favored-nation basis.
Specifically, the bill requires the U.S. Trade Representative to provide a classified briefing to specified congressional committees on the feasibility and advisability of pursuing and adopting covered plurilateral trade agreements.
After the congressional briefing, the bill directs the President to initiate negotiations for a covered plurilateral trade agreement when the President determines it is in the national interest to do so.
The bill authorizes the President to enter into these agreements in specified sectors of the economy (e.g., digital services and pharmaceuticals), with such authority expiring on July 1, 2027. Further, the President may proclaim a modification or continuance of any existing duty or continuance of existing excise or duty-free treatment to carry out an agreement.
To provide the President with authority to enter into certain 
     plurilateral trade agreements with benefits only applying to 
        signatories of those agreements, 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.

    This Act may be cited as the ``Trading System Preservation Act''.

SEC. 2. FINDINGS; SENSE OF CONGRESS.

    (a) Findings.--Congress makes the following findings:
            (1) The World Trade Organization (in this section referred 
        to as the ``WTO'') was established to be a forum for 
        multilateral trade negotiations between member countries.
            (2) Scant negotiating progress has been made at the WTO 
        since its creation in 1995, including through the failed Doha 
        Round, which was initiated 20 years before the date of the 
        enactment of this Act.
            (3) The inability to reach negotiated outcomes at the WTO 
        has pushed the multilateral trading system to the brink of 
        irrelevance and created incentives for members of the WTO to 
        pursue their trade policy objectives through litigation rather 
        than negotiation.
            (4) That lack of negotiating progress can be generally 
        attributed to a small minority of WTO members that, for a 
        variety of reasons, have exercised an effective veto over 
        negotiations, effectively prohibiting agreement on new rules to 
        discipline discriminatory practices.
            (5) Most favored nation (in this section referred to as 
        ``MFN'') obligations, strictly defined, which appear to 
        generally require equal treatment of all WTO members, make it 
        difficult to achieve high-quality plurilateral agreements 
        because of concerns about free ridership by WTO members who are 
        not party to those agreements.
    (b) Sense of Congress.--It is the sense of Congress that--
            (1) the WTO system affords a variety of flexibilities for 
        WTO members to negotiate and conclude plurilateral agreements 
        without extending the benefits negotiated therein to the entire 
        membership of the WTO on an MFN basis;
            (2) to reinvigorate the multilateral trading system and 
        advance its trade interests, the United States should exercise 
        its rights to negotiate new sectoral trade agreements with 
        other interested WTO members on a plurilateral basis;
            (3) to facilitate those negotiations, enable a high level 
        of ambition, and avoid lowest common denominator outcomes, any 
        new benefits negotiated under those new agreements should be 
        limited to the participants and not extended to the entire 
        membership of the WTO; and
            (4) pursuing plurilateral agreements that are not subject 
        to unconditional MFN will enable the United States to work with 
        like-minded countries within the framework of the WTO to 
        develop new rules to discipline discriminatory, trade 
        distorting, and non-market practices, restore the relevance of 
        the multilateral trading system, and expand trade to the 
        benefit of the citizens of the United States.

SEC. 3. BRIEFING ON PLURILATERAL AGREEMENTS WITH BENEFITS APPLYING ONLY 
              TO SIGNATORIES OF THOSE AGREEMENTS.

    (a) In General.--Not later than 120 days after the date of the 
enactment of this Act, the United States Trade Representative shall 
provide to the Committee on Finance of the Senate and the Committee on 
Ways and Means of the House of Representatives a classified briefing on 
the feasibility and advisability of pursuing and adopting covered 
plurilateral trade agreements.
    (b) Elements.--The briefing required under subsection (a) shall 
include a discussion of the opportunities, obstacles, feasibility, and 
advisability of negotiating and adopting covered plurilateral trade 
agreements.
    (c) Definitions.--In this section:
            (1) Covered plurilateral trade agreement.--The term 
        ``covered plurilateral trade agreement'' means a sector-
        specific agreement within the framework of the World Trade 
        Organization involving foreign countries or foreign territories 
        that form a subset of the members of the World Trade 
        Organization that does not extend benefits on a most favored 
        nation basis.
            (2) Most favored nation.--The term ``most favored nation'', 
        with respect to requirements relating to a trade agreement, 
        means requirements under the World Trade Organization for 
        nondiscriminatory trade treatment among all parties to the 
        agreement.

SEC. 4. NEGOTIATING AND TRADE AGREEMENTS AUTHORITY FOR CERTAIN 
              PLURILATERAL AGREEMENTS WITH BENEFITS APPLYING ONLY TO 
              SIGNATORIES OF THOSE AGREEMENTS.

    (a) Initiation of Negotiations.--
            (1) In general.--In order to enhance the economic well-
        being of the United States, the President shall initiate 
        negotiations for a covered plurilateral trade agreement under 
        this section when the President determines that it is in the 
        national interest to do so.
            (2) Limitation.--The President may not initiate 
        negotiations for a covered plurilateral trade agreement under 
        this section until the date on which the United States Trade 
        Representative provides the briefing required by section 3(a).
    (b) Authority for Agreements.--
            (1) In general.--To strengthen the economic competitiveness 
        of the United States by improving trade relations with 
        countries similarly interested, the President may enter into 
        covered plurilateral trade agreements in a sector of the 
        economy specified in subsection (d).
            (2) Termination of authority.--The authority under 
        paragraph (1) terminates on July 1, 2027.
    (c) Modifications Permitted.--
            (1) In general.--Subject to paragraph (2), the President 
        may proclaim such modification or continuance of any existing 
        duty or continuance of existing duty-free or excise treatment 
        as the President determines to be required or appropriate to 
        carry out an agreement entered into under subsection (b).
            (2) Limitation.--Substantial modifications to, or 
        substantial additional provisions of, an agreement entered into 
        after July 1, 2027, are not covered by the authority under 
        paragraph (1).
    (d) Sectors of the Economy Specified.--A sector of the economy 
specified in this subsection is any of the following sectors:
            (1) E-commerce and digital services.
            (2) Pharmaceuticals and medical countermeasures.
            (3) Environmental goods.
            (4) Services.
            (5) Any sector that is subject to substantial interference 
        by a foreign government, including through excessive subsidies 
        or state-owned enterprises.
    (e) Consultation With and Notification to Congress.--The President 
shall consult with Congress regarding, and notify Congress of, the 
intention of the President to enter into an agreement under subsection 
(b) or to make a proclamation under subsection (c).
    (f) Participating Countries.--
            (1) In general.--Subject to paragraph (2), the President 
        may determine which foreign countries or foreign territories to 
        negotiate with toward an agreement under this section and, 
        after the implementation of any such agreement, the President 
        may, as conditions warrant, identify and engage in negotiations 
        with additional countries or territories that wish to accede to 
        the agreement.
            (2) Non-market economy country.--
                    (A) In general.--The President may not negotiate an 
                agreement under this section with a foreign country or 
                foreign territory determined to be a non-market economy 
                country pursuant to section 771(18) of the Tariff Act 
                of 1930 (19 U.S.C. 1677(18)).
                    (B) After entry into force.--A foreign country or 
                foreign territory described in subparagraph (A) may 
                accede to a completed agreement negotiated pursuant to 
                this section after entry into force of the agreement if 
                a joint resolution is first enacted approving the 
                accession of that country to the agreement.
    (g) Bills Qualifying for Trade Authorities Procedures.--
            (1) Implementing bills.--
                    (A) In general.--The provisions of section 151 of 
                the Trade Act of 1974 (19 U.S.C. 2191) apply to a bill 
                of either House of Congress which contains provisions 
                described in subparagraph (B) to the same extent as 
                such section 151 applies to implementing bills under 
                that section. A bill to which this paragraph applies 
                shall hereafter in this section be referred to as an 
                ``implementing bill''.
                    (B) Provisions specified.--The provisions described 
                in this subparagraph are--
                            (i) a provision approving a trade agreement 
                        entered into under this section and approving 
                        the statement of administrative action, if any, 
                        proposed to implement such trade agreement; and
                            (ii) if changes in existing laws or new 
                        statutory authority are required to implement 
                        such trade agreement or agreements, only such 
                        provisions as are strictly necessary or 
                        appropriate to implement such trade agreement 
                        or agreements, either repealing or amending 
                        existing laws or providing new statutory 
                        authority.
            (2) Deadline for submission of bill.--The procedures under 
        paragraph (1) apply to implementing bills submitted with 
        respect to trade agreements entered into under this section 
        before July 1, 2027.
    (h) Relationship to Bipartisan Congressional Trade Priorities and 
Accountability Act of 2015.--An agreement under this section shall not 
enter into force with respect to the United States and an implementing 
bill shall not qualify for trade authorities procedures under 
subsection (g), including an agreement that does not require changes to 
United States law or an implementing bill in connection therewith, 
unless the following requirements under the Bipartisan Congressional 
Trade Priorities and Accountability Act of 2015 (19 U.S.C. 4201 et 
seq.) are carried out with respect to that agreement or implementing 
bill to the same extent as would be required of an agreement entered 
into under section 103(b) of that Act (19 U.S.C. 4202(b)), 
notwithstanding the expiration of authority to enter into an agreement 
under such section 103(b):
            (1) The trade negotiating objectives under section 102 of 
        that Act (19 U.S.C. 4201).
            (2) The congressional oversight and consultation 
        requirements under section 104 of that Act (19 U.S.C. 4203).
            (3) The notification, consultation, and reporting 
        requirements under section 105 of that Act (19 U.S.C. 4204).
            (4) The implementation procedures under section 106 of that 
        Act (19 U.S.C. 4205).
    (i) Definitions.--In this section:
            (1) Covered plurilateral trade agreement.--The term 
        ``covered plurilateral trade agreement'' means a sector-
        specific agreement within the framework of the World Trade 
        Organization involving foreign countries or foreign territories 
        that form a subset of the members of the World Trade 
        Organization that does not extend benefits on a most favored 
        nation basis.
            (2) Most favored nation.--The term ``most favored nation'', 
        with respect to requirements relating to a trade agreement, 
        means requirements under the World Trade Organization for 
        nondiscriminatory trade treatment among all parties to the 
        agreement.
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Trading System Preservation Act
A bill to provide the President with authority to enter into certain plurilateral trade agreements with benefits only applying to signatories of those agreements, and for other purposes.
Trading System Preservation Act
Sen. Portman, Rob