[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 509 Introduced in House (IH)]
<DOC>
119th CONGRESS
1st Session
H. R. 509
To decrease dependency on People's Republic of China manufacturing and
decrease migration due to lost regional economic opportunities.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
January 16, 2025
Mr. Green of Tennessee introduced the following bill; which was
referred to the Committee on Ways and Means, and in addition to the
Committee on Foreign Affairs, 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 decrease dependency on People's Republic of China manufacturing and
decrease migration due to lost regional economic opportunities.
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 ``Western Hemisphere Nearshoring
Act''.
SEC. 2. FINDINGS.
Congress finds the following:
(1) Our neighbors in the Western Hemisphere play a vital
role in ensuring peace, security, and democracy.
(2) Instability and lack of economic opportunities in the
region are major drivers of migration in violation of the
Immigration and Nationality Act.
(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 $121 billion.
(4) The United States is a net exporter with Central and
South America.
(5) Economic growth and development of the Western
Hemisphere brings essential strength and stability to the
region.
(6) There is significant opportunity to expand the free
flow of goods and services in the Western Hemisphere.
(7) Closer relations among the Americas through free trade
agreements and trade liberalization would encourage further
economic development and stability in the region.
(8) The United States should exercise its influence to
encourage privatization, free markets, and economic cooperation
in the region.
(9) Countries in the region should combat corruption,
strengthen the rule of law, reduce bureaucratic red tape,
streamline permitting, and embrace free market principles to
encourage further private sector investment.
(10) With cooperation from the United States, regional
countries must take serious steps to curb migration in
violation of the Immigration and Nationality Act.
(11) The Western Hemisphere has supply chains that are
vulnerable due to their over dependence on the People's
Republic of China.
(12) Free trade and expanded commercial ties between the
United States and Western Hemisphere partners will foster
economic and commercial cooperation, increase investment
opportunities, decrease migration in violation of the
Immigration and Nationality Act, reduce our dependence on the
People's Republic of China, and create jobs for American
workers.
SEC. 3. USE OF UNITED STATES INTERNATIONAL DEVELOPMENT FINANCE
CORPORATION FUNDS TO FINANCE MOVING EXPENSES AND
NECESSARY WORKFORCE DEVELOPMENT COSTS INCURRED BY
COMPANIES MOVING FROM THE PEOPLE'S REPUBLIC OF CHINA TO
LATIN AMERICA OR THE CARIBBEAN.
(a) Use of Funds.--
(1) In general.--The United States International
Development Finance Corporation, in coordination with 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) and the
United States Executive Directors of relevant international
financial institutions (including the World Bank Group, the
Inter-American Development Bank, and the International Monetary
Fund), shall use not less than 10 percent of the amounts made
available to provide financing under section 1421 of the Better
Utilization of Investments Leading to Development Act of 2018
(22 U.S.C. 9621) 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 of, and reduce
the interest rate on any loan to be provided by the DFC to the
interest rate described in paragraph (3) 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) Availability of unused amounts.--If the DFC does not
use the entire amount described in paragraph (1) for a fiscal
year described in such paragraph, such amount shall, to the
maximum extent practicable, be made available to the DFC for
the next fiscal year to carry out this section or other DFC
programs for Latin American or Caribbean countries.
(3) 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 a period of time after
the date the financing is made that is determined by the DFC on a case-
by-case basis.
(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) 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.
SEC. 4. AUTHORITY TO PROVIDE DUTY-FREE TREATMENT FOR GOODS AND SERVICES
OF COMPANIES MOVING FROM THE PEOPLE'S REPUBLIC OF CHINA
TO LATIN AMERICA OR THE CARIBBEAN.
(a) In General.--Notwithstanding any other provision of law, the
President shall proclaim duty-free treatment (or other preferential
treatment) for any good or service made or produced in a Latin American
or Caribbean country by a qualified corporation that has received
assistance under section 3, subject to such terms and conditions as the
President determines to be appropriate.
(b) Regulations.--The President shall prescribe such regulations as
may be necessary to carry out this section.
(c) Effective Period.--
(1) In general.--Subsection (a) shall apply with respect to
a good or service made or produced in a Latin American or
Caribbean country by a corporation for the 15-year period
beginning on the date on which the corporation begins
operations in such country.
(2) Rule of construction.--Nothing in this section may be
construed to affect duty-free treatment (or other preferential
treatment) for any good or service made or produced in a Latin
American or Caribbean country by a qualified corporation after
the 15-year period described in paragraph (1) if goods and
services from such country are otherwise generally eligible for
duty-free treatment (or other preferential treatment).
SEC. 5. ADDITIONAL CONDITIONS ON RECEIPT OF ASSISTANCE UNDER SECTION 3
AND DUTY-FREE TREATMENT (OR OTHER PREFERENTIAL TREATMENT)
UNDER SECTION 4.
(a) In General.--The appropriate Federal agency may not provide
assistance under section 3 or duty-free treatment (or other
preferential treatment) under section 4 to a corporation unless--
(1) the agency determines that the corporation will create
jobs in the Latin American or Caribbean country to which it
moves operations in numbers determined by the agency to be
commensurate with the assistance provided;
(2) the corporation makes a binding commitment to the
agency that on and after the date the assistance is provided--
(A) the corporation will not come under the
ownership or control of 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; and
(B) the corporation will not have its headquarters
in the People's Republic of China, the Russian
Federation, or any other foreign adversary;
(3) within 2 years after the date described in paragraph
(2), and subject to an additional extension as determined
appropriate by the agency, all assets of the corporation with
respect to which the assistance is provided will have been
moved from the People's Republic of China to a Latin American
or Caribbean country; and
(4) the corporation retains all assets of the corporation
with respect to which the assistance is provided in a Latin
American or Caribbean country after the date described in
paragraph (2) or the last day of the extension described in
paragraph (3), as the case may be.
(b) Compliance Determinations.--
(1) In general.--The appropriate Federal agency, in
coordination with the Department of State, shall make all
determinations regarding compliance with the provisions of
subsection (a).
(2) Non-compliance actions.--A qualified corporation that
has received assistance under section 3 or duty-free treatment
(or other preferential treatment) under section 4 that is
subsequently determined by the appropriate Federal agency not
to be in compliance with the provisions of subsection (a) shall
be subject to the following actions:
(A) Any good or service made or produced in a Latin
American or Caribbean country by the corporation (other
than a good or service made or produced in a free trade
zone or which is subject to benefits under a free trade
agreement) shall not be eligible for duty-free
treatment (or other preferential treatment) under
section 4.
(B) The appropriate Federal agency shall adjust the
interest rate on any loan to be provided by the agency
to the corporation to the prevailing market interest
rate.
(c) Appropriate Federal Agency Defined.--In this section, the term
``appropriate Federal agency'' means--
(1) with respect to actions relating to assistance under
section 3, the DFC; and
(2) with respect to actions relating to duty-free treatment
(or other preferential treatment) under section 4, the United
States Trade Representative.
SEC. 6. 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
of assistance provided by the DFC under this Act.
(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. 7. AMENDMENTS TO THE BUILD ACT OF 2018.
(a) Statement of Policy.--Section 1411 of the Better Utilization of
Investments Leading to Development Act of 2018 (22 U.S.C. 9611) is
amended--
(1) in paragraph (7), by striking ``and'' at the end;
(2) in paragraph (8), by striking the period at the end and
inserting a semicolon; and
(3) by adding at the end the following:
``(9) to further United States economic growth by
prioritizing United States-owned businesses in providing
support under title II; and
``(10) to further United States national security by
prioritizing the production of goods in critical industries, as
determined by the Corporation, in consultation with the
Department of Homeland Security.''.
(b) Prohibition on Support for State-Owned Enterprises.--
(1) In general.--Title V of the Better Utilization of
Investments Leading to Development Act of 2018 (22 U.S.C. 9671
et seq.) is amended by adding at the end the following:
``SEC. 1455. PROHIBITION ON SUPPORT FOR ENTITIES OWNED OR CONTROLLED BY
FOREIGN GOVERNMENTS.
``(a) In General.--Except as provided in subsection (b), the
Corporation is prohibited from providing support under title II for an
entity owned or controlled by a foreign government.
``(b) Exception.--
``(1) In general.--The Corporation may provide feasibility
studies and technical assistance under title II for an entity
owned or controlled by a foreign government that is not a
foreign adversary.
``(2) Foreign adversary defined.--In this subsection, 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.''.
(2) Clerical amendment.--The table of contents for the FAA
Reauthorization Act of 2018 (49 U.S.C. 40101 note) is amended
by inserting after the item relating to section 1454 the
following:
``Sec. 1455. Prohibition on support for entities owned or controlled by
foreign governments.''.
SEC. 8. TRADE NEGOTIATING AUTHORITY.
(a) In General.--The United States Trade Representative shall take
action to initiate negotiations to obtain trade agreements with each
Latin American or Caribbean country that as of the date of the
enactment of this Act is not a party to a free trade agreement with the
United States if the country meets the conditions described in
subsection (b).
(b) Conditions Described.--The conditions described in this
subsection are the following:
(1) The country is taking steps to reduce migration in
violation of the Immigration and Nationality Act.
(2) The country is taking steps to reduce economic
dependence on the People's Republic of China.
(3) The country allows Taiwan to establish and maintain a
commercial office in the country.
SEC. 9. AGREEMENTS FOR COOPERATION PURSUANT TO SECTION 123 OF THE
ATOMIC ENERGY ACT OF 1954.
(a) In General.--The President is authorized to take action to
initiate negotiations with Latin American and Caribbean countries to
obtain agreements for cooperation pursuant to section 123 of the Atomic
Energy Act of 1954 (42 U.S.C. 2153) to approve the sales of nuclear
reactors to such countries, or to qualified corporations that receive
assistance under this Act, but only if--
(1) the President determines that such sales will not
threaten the national security of the United States; and
(2) the countries or qualified corporations, as the case
may be, meet the conditions described in paragraphs (1), (2),
and (3) of section 8(b).
(b) Technical Assistance and Expertise.--The Administrator of the
United States Agency for International Development, in consultation
with the Secretary of Energy and the DFC, may provide technical
assistance and expertise in electrical grid and energy efficiency
improvements related to sales under subsection (a), as appropriate.
SEC. 10. TEMPORARY INCREASED EXPENSING FOR RELOCATING MANUFACTURING
FROM THE PEOPLE'S REPUBLIC OF CHINA TO A 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 by a qualified
manufacturer after the date of the enactment of this Act, and before
January 1, 2038--
(1) such property shall be treated as qualified property
(within the meaning of such section),
(2) the applicable percentage otherwise determined under
paragraph (6) of such section with respect to such property
shall be 75 percent, and
(3) paragraphs (8) and (10) 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 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 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 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 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.
(c) Qualified Manufacturer.--For purposes of this section, the term
``qualified manufacturer'' means any person--
(1) which is engaged in the trade or business of
manufacturing any tangible personal property,
(2) with respect to which the Secretary of the Treasury (or
the Secretary's delegate) has made the determination described
in section 5(a)(1), and
(3) which has entered into a binding agreement with such
Secretary (or such delegate) to meet the requirements of
section 5(a)(2) which is enforceable under terms similar to the
terms of section 5(b).
SEC. 11. DEFINITIONS.
In this Act:
(1) DFC.--The term ``DFC'' means the United States
International Development Finance Corporation.
(2) Qualified corporation.--The term ``qualified
corporation'' does not include a State-owned enterprise.
(3) Qualified moving costs defined.--The term ``qualified
moving costs'' means--
(A) the costs of moving inventory, equipment, and
supplies from the People's Republic of China to a Latin
American or Caribbean country; and
(B) the costs of workforce development and
construction of facilities.
(4) Latin american or caribbean country; western
hemisphere.--
(A) In general.--The terms ``Latin American or
Caribbean country'' and ``Western Hemisphere''--
(i) mean a country in the Caribbean Sea,
South America, or Central America, and Mexico;
and
(ii) except as provided in subparagraph
(B), do not include Cuba or Venezuela.
(B) Exception.--The term ``Latin American or
Caribbean country'' shall include Cuba or Venezuela if
the Secretary of State determines and certifies to
Congress that--
(i) the government of such country--
(I) has held free and fair
presidential and legislative elections,
as determined by independent
international observers, and subsequent
elections are scheduled;
(II) respects and upholds human
rights;
(III) is taking significant steps
to privatize its economy and institute
a free market;
(IV) permits the international
community to provide humanitarian,
governance, and economic development
assistance;
(V) has freed all unlawfully
detained United States citizens, legal
permanent residents, and political
prisoners; and
(VI) has expelled all security
services from foreign adversaries from
the country; and
(ii) the prior authorities of such country
have renounced their illegitimate claim to
power.
(5) 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.
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