[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7935 Introduced in House (IH)]
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117th CONGRESS
2d Session
H. R. 7935
To reinforce commercial relationships with Latin American and Caribbean
allies and expand critical supply chains in the Americas.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
June 3, 2022
Mr. Espaillat (for himself and Mrs. Cherfilus-McCormick) introduced the
following bill; which was referred to the Committee on Foreign Affairs,
and in addition to the Committee on Ways and Means, for a period to be
subsequently determined by the Speaker, in each case for consideration
of such provisions as fall within the jurisdiction of the committee
concerned
_______________________________________________________________________
A BILL
To reinforce commercial relationships with Latin American and Caribbean
allies and expand critical supply chains in the Americas.
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 ``Opportunities in the Americas Act''.
SEC. 2. FINDINGS.
Congress finds the following:
(1) Our neighbors in the Western Hemisphere play a vital
role in ensuring regional peace, security, and democracy.
(2) According to the United States Trade Representative, in
2020 the United States exported $11.1 billion worth of goods to
Caribbean Basin Initiative countries and imported $5.1 billion.
(3) According to the United States Census Bureau, in 2021
the United States exported $174.62 billion worth of goods to
Central and South America and imported $120.99 billion.
(4) The economic viability of the Western Hemisphere brings
essential strength and stability to the region.
(5) There is significant opportunity to improve regional
investment in manufacturing, co-production and nearshoring
arrangements, and the free flow of goods and services in the
Western Hemisphere.
(6) Closer economic integration among the Americas through
free trade agreements encourages further economic and
commercial ties in the region.
(7) The United States should exercise its influence to
encourage private sector investment, free markets, and economic
cooperation in the region.
(8) Countries in the Western Hemisphere should combat
corruption, strengthen their judicial systems, reduce
bureaucratic red tape, streamline permitting, and embrace free
markets in order to encourage more private sector investment.
(9) The Western Hemisphere has a supply chain that is
overly dependent on the People's Republic of China.
(10) The United States free trade agreements and preference
programs in the Western Hemisphere, including the Dominican
Republic-Central America Free Trade Agreement and the Caribbean
Basin Trade Partnership Act, are key economic drivers in the
region and represent a crucial alternative co-production and
trading bloc to the People's Republic of China.
(11) Ensuring that critical supply chains for key products,
including textiles and apparel, lithium batteries, and
pharmaceuticals, are located both in the United States and
other countries in the Western Hemisphere is a national
security priority for the United States.
(12) The United States should enact policies that
incentivize manufacturers to relocate to the Western
Hemisphere, and United States companies to expand operations in
the region through nearshoring and co-production arrangements.
(13) Increased investment incentives, co-production, and
trade between the United States and Latin America and the
Caribbean will foster joint economic and commercial growth,
increase investment opportunities, and contribute to job
creation.
SEC. 3. ASSISTANCE PROVIDED BY THE UNITED STATES INTERNATIONAL
DEVELOPMENT FINANCE CORPORATION.
(a) Use of Funds.--
(1) In general.--Notwithstanding any other provision of
law, the DFC shall use not less than 10 percent of the amounts
made available under any provision of law to the DFC for each
fiscal year beginning after the date of the enactment of this
Act to finance the qualified moving costs and necessary
workforce development costs and the qualified costs of
expanding business of, and reduce the interest rate on any loan
to be provided by the DFC to the interest rate described in
paragraph (4) to, any qualified corporation that is eligible
for, or a recipient of, assistance from the DFC, to the extent
of qualifying applications for assistance under this section.
(2) Coordination.--The DFC shall carry out this section in
coordination with--
(A) relevant Federal agencies, including the United
States Trade and Development Agency, the Export-Import
Bank of the United States, the United States Army Corps
of Engineers, and the United States Agency for
International Development;
(B) relevant international financial institutions,
including the World Bank and the Inter-American
Development Bank;
(C) relevant nongovernmental organizations; and
(D) relevant governments of Latin American and
Caribbean countries.
(3) Availability of unused amounts.--If the DFC does not
use the entire amount described in paragraph (1) for a fiscal
year as described in such paragraph, such amount shall, to the
maximum extent practicable, be made available to the DFC for
the next fiscal year, in addition to other available funds, to
carry out this section or other DFC programs for qualified
Latin American or Caribbean countries.
(4) Interest rate described.--The interest rate described
in this paragraph is--
(A) the Federal funds rate; or
(B) the interest rate that is determined by
reducing by not less than \1/2\ of 1 percent and not
more than 1 percent (but to not less than zero percent)
the interest rate on the loan to be provided by the DFC
to the qualified corporation,
whichever is the lesser.
(b) No Negative Effects on Employment in the United States.--The
DFC shall not provide assistance under this section unless the
Secretary of Commerce has determined that the provision of the
assistance would not result in a negative effect on employment in the
United States.
(c) Disposition of Unused Assistance.--A corporation to which
financing is made under this section shall remit to the DFC any portion
of the assistance that is not expended within 4 years after the date
the financing is made.
(d) Conditions on Provision of Loans.--The DFC--
(1) may provide loans under this section to a corporation
only if the loans are commercially viable, as determined by the
DFC; and
(2) shall determine an appropriate amount of time for
repayment of loans under this section to a corporation.
(e) Conditions on Receipt of Assistance.--
(1) In general.--The DFC may not provide assistance under
this section to a corporation unless--
(A) the DFC determines that the corporation will
create jobs in the qualified Latin American or
Caribbean country to which it moves operations or
expands business in numbers determined by the DFC to be
commensurate with the assistance provided;
(B) the DFC determines that the corporation will
expand its business operations in the Western
Hemisphere if it already does business in a qualified
Latin American or Caribbean country;
(C) the corporation makes a binding commitment to
the DFC that, on and after the date the assistance is
provided--
(i) neither the corporation nor any owner
of the corporation will have an ownership
relationship with the Government of the
People's Republic of China or the Chinese
Communist Party, the Government of the Russian
Federation, or any other foreign adversary;
(ii) neither the corporation nor any owner
of the corporation will have a significant
contractual or supplier relationship with the
People's Republic of China; and
(iii) the corporation--
(I) will not have its headquarters
in the People's Republic of China, the
Russian Federation, or any other
foreign adversary; and
(II) will not have a majority of
its operations in the People's Republic
of China and a majority of its revenue
will not be generated in the People's
Republic of China;
(D) the corporation, when receiving funding in
relation to qualified moving costs--
(i) makes a binding commitment to the DFC
that it will submit to the DFC a report
specifying the progress it is making to move
its operations from the People's Republic of
China to the qualified Latin American or
Caribbean country; and
(ii) makes a binding commitment to the DFC
that it will move all assets of the corporation
with respect to which the assistance is
provided to a qualified Latin American or
Caribbean country; and
(E) the corporation will retain all assets of the
corporation with respect to which the assistance is
provided in a qualified Latin American or Caribbean
country after the date described in subparagraph (C) or
the last day of the extension described in subparagraph
(E), as the case may be.
(2) Compliance determinations.--
(A) In general.--The DFC, in coordination with the
Department of State and the United States Trade
Representative, shall make all determinations regarding
compliance with the provisions of paragraph (1).
(B) Non-compliance actions.--If the DFC has reduced
the interest rate on any loan provided by the DFC to a
qualified corporation to the interest rate described in
subsection (a)(4) and the corporation is subsequently
determined by the agency not to be in compliance with
the provisions of subsection (a), the DFC shall adjust
the interest rate on such loan or any other loan to be
provided by the DFC to the corporation to the
prevailing market interest rate.
(f) Plan.--Not later than 180 days after the date of the enactment
of this Act, the DFC shall develop and submit to the Committee on
Foreign Affairs of the House of Representatives and the Committee on
Foreign Relations of the Senate a plan to streamline the provision of
assistance under this section, including to expedite the approval
process for the provision of such assistance.
(g) Progress Reports.--Not later than one year after the date of
the enactment of this Act, and annually thereafter for 15 years, the
DFC shall submit to the Committee on Foreign Affairs of the House of
Representatives and the Committee on Foreign Relations of the Senate a
report on progress made in providing assistance under this section.
(h) Sunset.--This section shall have no force or effect on or after
the date that is 15 years after the date of the enactment of this Act.
SEC. 4. EXPENSES PAID FOR WITH TARIFFS COLLECTED FROM THE PEOPLE'S
REPUBLIC OF CHINA.
(a) Establishment of Trust Fund.--There is established in the
Treasury of the United States a trust fund consisting of such amounts
as are appropriated to such trust fund under subsection (b).
(b) Appropriations to Trust Fund.--There are hereby appropriated to
such trust fund amounts equivalent to the tariffs collected by the
United States on goods manufactured in the People's Republic of China.
(c) Appropriations From Trust Fund.--There are hereby appropriated
from such trust fund to the General Fund of the Treasury amounts
equivalent to the reduction in revenue to such General Fund by reason
assistance provided by the DFC under section 3.
(d) Timing of Transfers, etc.--Rules similar to the rules of
section 9601 of the Internal Revenue Code of 1986 shall apply with
respect to appropriations to and from such trust fund under subsections
(b) and (c).
SEC. 5. INITIATIVES FOR TECHNICAL ASSISTANCE FOR GRID IMPROVEMENT AND
ENERGY EFFICIENCY.
The DFC, in consultation with the Secretary of Energy and the heads
of other relevant Federal departments and agencies and in cooperation
with the governments and regional authorities of qualified Latin
American and Caribbean countries, shall support initiatives, including
new initiatives and initiatives in existence as of the date of the
enactment of this Act, as appropriate, to provide technical assistance
and expertise on electrical grid and energy efficiency improvements in
such countries in which qualified corporations relocate or expand
business pursuant to section 3 for the following purposes:
(1) Expanding and improving the reliability, flexibility,
and resilience of the electrical grid to maintain business
operations in a relocated area.
(2) Developing microgrids or distributed energy resources
in areas in which connection to the larger electrical grid is
challenging.
(3) Increasing the optimal integration of renewable energy
into the electrical grid.
(4) Enhancing the interconnectivity of electrical grids.
(5) Boosting the energy storage capacity of the electrical
grid.
(6) Developing standards for clean energy technologies,
smart buildings, and data centers.
(7) Increasing deployment of smart meters and other energy
efficiency technology.
(8) Increasing the energy efficiency of buildings,
appliances, and the industrial sector.
(9) Improving pollution controls.
SEC. 6. TEMPORARY INCREASED EXPENSING FOR RELOCATING MANUFACTURING FROM
THE PEOPLE'S REPUBLIC OF CHINA TO A QUALIFIED LATIN
AMERICAN OR CARIBBEAN COUNTRY.
(a) In General.--For purposes of section 168(k) of the Internal
Revenue Code of 1986, in the case of any qualified relocated
manufacturing property which is placed in service after the date of the
enactment of this Act, and before January 1, 2030--
(1) such property shall be treated as qualified property
(within the meaning of such section),
(2) the applicable percentage otherwise determined under
section 168(k)(6) of such Code with respect to such property
shall be 75 percent, and
(3) paragraph (8) of such section shall not apply.
(b) Qualified Relocated Manufacturing Property.--For purposes of
this section--
(1) In general.--The term ``qualified relocated
manufacturing property'' means qualified property (within the
meaning of section 168(k) of such Code) or nonresidential real
property (as defined in section 168(e)(2)(B) of such Code)
which is--
(A) placed in service in a qualified Latin American
or Caribbean country by a qualified manufacturer, and
(B) is acquired by such qualified manufacturer in
connection with a qualified relocation of
manufacturing.
(2) Qualified relocation of manufacturing.--
(A) In general.--The term ``qualified relocation of
manufacturing'' means, with respect to any qualified
manufacturer, the relocation of the manufacturing of
any tangible personal property from the People's
Republic of China to a qualified Latin American or
Caribbean country.
(B) Relocation of property not required.--For
purposes of subparagraph (A), manufacturing shall not
fail to be treated as relocated merely because property
used in such manufacturing was not relocated.
(C) Relocation of not less than equivalent
productive capacity required.--For purposes of
subparagraph (A), manufacturing shall not be treated as
relocated unless the property manufactured in a
qualified Latin American or Caribbean country is
substantially identical to the property previously
manufactured in the People's Republic of China and the
increase in the units of production of such property in
a qualified Latin American or Caribbean country by the
qualified manufacturer is not less than the reduction
in the units of production of such property by such
qualified manufacturer in the People's Republic of
China.
(3) Qualified manufacturer.--The term ``qualified
manufacturer'' means any person engaged in the trade or
business of manufacturing any tangible personal property.
SEC. 7. DEFINITIONS.
In this Act:
(1) DFC.--The term ``DFC'' means the United States
International Development Finance Corporation.
(2) Federal funds rate.--The term ``Federal funds rate''
means the discount window primary credit interest rate most
recently published on the Federal Reserve Statistical Release
on selected interest rates (daily or weekly), commonly referred
to as the H.15 release.
(3) Foreign adversary.--The term ``foreign adversary''
means a foreign government engaged in a long-term pattern or
serious instances of conduct significantly adverse to the
national security of the United States or security and safety
of United States persons.
(4) Qualified corporation.--The term ``qualified
corporation''--
(A) means a corporation that is not incorporated in
a country the government of which is a foreign
adversary; and
(B) does not include a state-owned enterprise.
(5) Qualified latin american or caribbean country.--The
term ``qualified Latin American or Caribbean country'' means a
Latin American or Caribbean country--
(A) that is a party to a free trade agreement of
preference program with the United States; and
(B) the government of which is not a foreign
adversary.
(6) Qualified costs of expanding business.--The term
``qualified costs of expanding business'' means--
(A) the costs of increased operating expenditures,
including capital investments, workforce development,
and such other expenses, as determined or limited by
the DFC; and
(B) the costs of increased overhead, as determined
or limited by the DFC.
(7) Qualified moving costs.--The term ``qualified moving
costs'' means--
(A) the costs of moving inventory, equipment, and
supplies from the People's Republic of China to a
qualified Latin American or Caribbean country; and
(B) the costs of workforce development and
construction of facilities.
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