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New Bill on Section 301 Sanctions Against Foreign Internet Trade Barriers

On July 1, 2010, Representative Lofgren (D) and 9 co-sponsors1 introduced H.R. 5694, the One Global Internet Act of 2010, to combat trade barriers that threaten the maintenance of a single, open, global Internet, mandate unique technology standards as a condition of market access and related measures; and to promote the free flow of information.

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(This bill has just been introduced and is not in effect. Generally, in order for a bill to be implemented, identical versions of that bill must be passed by both the House and Senate, and then the bill must be approved (enacted) by the President.)

Bill Would Create Task Force, Provide for Section 301 Sanctions, Etc.

According to a summary from Representative Lofgren and the bill text, H.R. 5694 would:

Create Task Force on the Global Internet. The task force would be comprised of representatives of the Departments of State, Commerce and Defense, the U.S. Trade Representative, and others.

ln an annual report delivered to Congress, the Task Force would identify actions by foreign governments that threaten the lnternet and trade in related services and technologies, including discriminatory restrictions on lnternet-based content and services, deviations from international standards for lnternet technology, and demands for intellectual property and other conditions for market access. This report would have to include a strategy for a response by the Executive Branch to each specific threat.

Provide for Section 301 investigations, sanctions for priority concerns. As part of its annual report, the Task Force would identify actions by foreign governments that are "priority concerns."

For each “priority concern,” H.R. 5694 would direct the USTR, in accordance with the requirements of 19 USC 2411-2414, to initiate a Section 301 investigation, make any required determinations, and take any actions specified in such sections with respect to any acts, policies, or practices of a foreign government that are identified as priority concerns, including restrictions on the sale in the U.S. of products developed and manufactured in countries implementing such acts, policies, or practices.

(In the past, under Section 301, the U.S. has usually chosen 100% duties on specified products of the country subject to the investigation as its retaliatory action.)

Coordinate all related policy, executive activity. ln order to implement responses to various threats to the global lnternet, the Task Force would coordinate all related policy and executive activity.

1Representatives Becerra (D), Blumenauer (D), Eshoo (D), Goodlatte (R), McCaul (R), Miller (D), Neal (D), and Thompson (D).