[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 2861 Introduced in Senate (IS)]
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119th CONGRESS
1st Session
S. 2861
To direct the United States Trade Representative to prioritize North
American alignment on foreign investment review during the next joint
review conducted under the United States-Mexico-Canada Agreement.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
September 18 (legislative day, September 16), 2025
Mr. McCormick (for himself and Ms. Cortez Masto) introduced the
following bill; which was read twice and referred to the Committee on
Finance
_______________________________________________________________________
A BILL
To direct the United States Trade Representative to prioritize North
American alignment on foreign investment review during the next joint
review conducted under the United States-Mexico-Canada Agreement.
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 ``Protecting the USMCA from Harmful
Chinese Investment Act''.
SEC. 2. NORTH AMERICAN ALIGNMENT ON FOREIGN INVESTMENT REVIEW.
(a) Sense of Congress.--It is the sense of Congress that--
(1) Canada and Mexico are the two largest trading partners
of the United States, with bilateral goods and services trade
between the United States and each such country reaching
approximately $1,000,000,000,000 in 2024;
(2) the United States-Mexico-Canada Agreement (USMCA)
underpins much of the trade referred to in paragraph (1) and
promotes a strong North American supply chain that supports
millions of good-paying jobs in the United States;
(3) given the close economic relationship between the
United States, Mexico, and Canada under the USMCA, ensuring
that each party has robust investment review mechanisms in
place is important towards strengthening the collective
national security interests of those countries against risks
stemming from foreign investments by nonmarket economy
countries, including the People's Republic of China;
(4) the Committee on Foreign Investment in the United
States plays a critical role in protecting the national
security of the United States by reviewing foreign investments
for national security risks; and
(5) the establishment by Mexico and Canada of legislative
and regulatory frameworks to review foreign investments for
national security risks that are similar to the framework
established under section 721 of the Defense Production Act of
1950 (50 U.S.C. 4565) would--
(A) advance the national security interests of the
United States; and
(B) allow for closer coordination between the USMCA
countries with respect to shared threats from
investments by nonmarket economy countries in
strategically important economic sectors and critical
infrastructure in North America.
(b) Joint Review Negotiation Objective.--Subject to the
requirements of section 611 of the United States-Mexico-Canada
Agreement Implementation Act (19 U.S.C. 4611), during the first joint
review conducted after the date of the enactment of this Act, the Trade
Representative shall advocate for--
(1) each USMCA country to implement a legislative and
regulatory framework for reviewing foreign investment for
national security risks that is similar to the framework
established under section 721 of the Defense Production Act of
1950 (50 U.S.C. 4565); and
(2) the establishment of a mechanism for USMCA countries to
coordinate to address shared threats from investments by
nonmarket economy countries.
(c) Technical Assistance.--In carrying out subsection (b), the
Trade Representative shall coordinate with the Secretary of the
Treasury and the Secretary of State with respect to the provision of
technical assistance to USMCA countries to support the establishment of
frameworks for reviewing foreign investments for national security
risks.
(d) Definitions.--In this section:
(1) Joint review.--The term ``joint review'' has the
meaning given that term in section 611 of the United States-
Mexico-Canada Agreement Implementation Act (19 U.S.C. 4611).
(2) Nonmarket economy country.--The term ``nonmarket
economy country'' has the meaning given that term in section
771(18) of the Tariff Act of 1930 (19 U.S.C. 1677(18)).
(3) Technical assistance.--The term ``technical
assistance'' includes--
(A) the use of short-term and long-term expert
advisers to assist foreign governments with the
establishment of frameworks for reviewing foreign
investments for national security risks;
(B) training in the recipient country, the United
States, or elsewhere for the establishment of such
frameworks;
(C) grants of goods, services, or funds to foreign
governments;
(D) grants to United States nonprofit organizations
to provide services or products that contribute to the
provision of advice to foreign governments; and
(E) study tours for foreign officials in the United
States or elsewhere for the purpose of providing
technical information to such officials.
(4) Trade representative.--The term ``Trade
Representative'' means the United States Trade Representative.
(5) USMCA.--The term ``USMCA'' has the meaning given that
term in section 3 of the United States-Mexico-Canada Agreement
Implementation Act (19 U.S.C. 4502).
(6) USMCA country.--The term ``USMCA country'' has the
meaning given that term in section 202(a) of the United States-
Mexico-Canada Agreement Implementation Act (19 U.S.C. 4531(a)).
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