SECTION 1: SHORT TITLE. The act may be cited as the "Enhancement of Trade, Security and Human Rights through Sanctions Reform Act."

SECTION 2: PURPOSE. The purpose of the Act is to establish an effective framework for consideration of unilateral economic sanctions.

SECTION 3 STATEMENT OF POLICY. This section sets forth U.S. policy to pursue American security, trade, and humanitarian interests through broad-ranging engagement with other countries, while recognizing the need at times to impose sanctions as a last resort. It supports multilateral cooperation as an alternative to unilateral U.S. sanctions. It seeks to promote U S. economic growth through trade and to maintain America's reputation as a reliable supplier. It opposes boycotts and use of agricultural embargoes as a foreign policy weapon. It urges that economic sanctions be targeted as narrowly as possibly, to minimize harm to innocent people or to humanitarian activities.

SECTION 4: DEFINITIONS. This section defines "unilateral economic sanction" as any restriction or condition on economic activity with respect to a foreign country or entity imported for reasons of foreign policy or national security. This definition excludes multilateral sanctions, where other countries have agreed to adopt "substantially equivalent" measures. The definition also excludes U.S. trade laws, Jackson-Vanik, and munitions list controls. This section also defines the terms "national emergency," "agricultural commodity," "appropriate committees," and "contract sanctity."

SECTION 5: GUIDELINES FOR UNILATERAL ECONOMIC SANCTIONS LEGISLATION. This section provides that any bill or joint resolution imposing or authorizing a unilateral economic sanction should state the U.S. foreign policy or national security objective, sunset after two years unless specifically authorized, protect contract sanctity, provide Presidential authority to adjust or waive the sanction in the national interest, target the sanction as narrowly as possible against the parties responsible for the offending conduct, and provide for expanded export promotion if sanctions target a major export market for American farmers.

SECTION 6: REQUIREMENTS FOR REPORT ACCOMPANYING THE BILL. The committee reporting sanctions legislation shall request reports from the President and Secretary of Agriculture. These reports shall be included in the committee report. If the legislation does not meet any Section 5 guideline, the committee report shall explain why not.

The President's report shall contain an assessment of the likelihood that the proposed sanction will achieve its stated objective within reasonable time. It must weigh the likely foreign policy, national security, economic, and humanitarian benefits against the costs of acting unilaterally. The report will also assess alternatives, such as prior diplomatic and other U.S. steps and comparable multilateral measures.

The Secretary of Agriculture's report shall assess the likely extent of the proposed legislation in terms of market share in affected countries, the likelihood that U.S. agricultural exports will be affected on the reputation of U.S. farmers as reliable suppliers.

section 6 also considers unilateral sanctions as unfunded federal mandates for purposes of the Unfunded Mandates Act. The Congressional Budget Office shall assess the likely short- and long- term cost of the proposed sanctions to the U.S. economy.

SECTION 7: REQUIREMENTS FOR EXECUTIVE ACTION. The President may impose a unilateral sanction no less than 60 days after announcing his intention to do so, during which time he shall consult with Congressional committees and publish a notice in the Federal Register seeking public comment. Any Executive sanction must meet the same guidelines that Section 5 applies to the Congress and must, in addition, include a clear finding that the sanction is likely to achieve a specific U.S. foreign policy or national security objective within a reasonable -- and specified -- period of time.

Section 7 also requires -- prior to the imposition of a unilateral sanction -- the President and the Secretary of Agriculture to provide to the appropriate Congressional committees reports that contain the same assessment as required in the reports described in Section 6. The President shall also request a report by the U.S. International Trade Commission on the likely short- And long-term costs of the proposed sanctions to the U. S. economy, including the potential impact on U. S. competitiveness.

In case of national emergency, the bill allows the President temporarily to waive most Section 7 requirements in order to act immediately. If the President acts on an emergency basis, the waived requirements must be met within sixty days. Finally, the President shall establish an interagency Sanctions Review Committee to improve coordination of U.S. policy regarding unilateral sanctions.

SECTION 8: ANNUAL REPORTS. The President must submit to the appropriate committees a report each year detailing the extent to which sanctions have achieved U.S. objectives, as well as their impact on humanitarian and other U.S. interests, including relations with friendly countries. The U.S. International Trade Commission shall report to the congress on the costs, individually and in the aggregate, of all unilateral economic sanctions in effect under U.S. law, regulation, or Executive order, including the impact on U.S. competitiveness.

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