,i #aaith ,,congress #ast ,session ,h4 ,r4 #eji ,,in ,,the ,,house ,,of ,,representatives ,january #af1 #bjbe,mr4 ,green of ,tennessee introduced the following bill2 which was referred to the ,committee on ,ways and ,means1 and in addition to the ,committee on ,foreign ,affairs1 for a period to be subsequently determined by the ,speaker1 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 opportunities4 #a4 ,short title ,this ,act may be cited as the ,western ,hemisphere ,nearshoring ,act4 #b4 ,findings ,congress finds the following3 7#a7 ,our neighbors in the ,western ,hemisphere play a vital role in ensuring peace1 security1 and democracy4 7#b7 ,instability and lack of economic opportunities in the region are major drivers of migration in violation of the ,immigration and ,nationality ,act4 7#c7 ,according to the ,united ,states ,census ,bureau1 in #bjba the ,united ,states exported #agd4fb billion worth of goods to ,central and ,south ,america1 and imported #aba billion4 7#d7 ,the ,united ,states is a net exporter with ,central and ,south ,america4 7#e7 ,economic growth and development of the ,western ,hemisphere brings essential strength and stability to the region4 7#f7 ,there is significant opportunity to expand the free flow of goods and services in the ,western ,hemisphere4 7#g7 ,closer relations among the ,americas through free trade agreements and trade liberalization would encourage further economic development and stability in the region4 7#h7 ,the ,united ,states should exercise its influence to encourage privatization1 free markets1 and economic cooperation in the region4 7#i7 ,countries in the region should combat corruption1 strengthen the rule of law1 reduce bureaucratic red tape1 streamline permitting1 and embrace free market principles to encourage further private sector investment4 7#aj7 ,with cooperation from the ,united ,states1 regional countries must take serious steps to curb migration in violation of the ,immigration and ,nationality ,act4 7#aa7 ,the ,western ,hemisphere has supply chains that are vulnerable due to their over dependence on the ,people's ,republic of ,china4 7#ab7 ,free trade and expanded commercial ties between the ,united ,states and ,western ,hemisphere partners will foster economic and commercial cooperation1 increase investment opportunities1 decrease migration in violation of the ,immigration and ,nationality ,act1 reduce our dependence on the ,people's ,republic of ,china1 and create jobs for ,american workers4 #c4 ,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 7a7 ,use of funds 7#a7 ,in general ,the ,united ,states ,international ,development ,finance ,corporation1 in coordination with relevant ,federal agencies 7including the ,united ,states ,trade and ,development ,agency1 the ,export-,import ,bank of the ,united ,states1 the ,united ,states ,army ,corps of ,engineers1 and the ,united ,states ,agency for ,international ,development7 and the ,united ,states ,executive ,directors of relevant international financial institutions 7including the ,world ,bank ,group1 the ,inter-,american ,development ,bank1 and the ,international ,monetary ,fund71 shall use not less than #aj percent of the amounts made available to provide financing under section #adba of the ,better ,utilization of ,investments ,leading to ,development ,act of #bjah 7#bb ,u4,s4,c4 #ifba7 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 of1 and reduce the interest rate on any loan to be provided by the ,,dfc to the interest rate described in paragraph 7#c7 to1 any qualified corporation that is eligible for1 or a recipient of1 assistance from the ,,dfc1 to the extent of qualifying applications for assistance under this section4 7#b7 ,availability of unused amounts ,if the ,,dfc does not use the entire amount described in paragraph 7#a7 for a fiscal year described in such paragraph1 such amount shall1 to the maximum extent practicable1 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 countries4 7#c7 ,interest rate described ,the interest rate described in this paragraph is-- 7,a7 the ,federal funds rate2 or 7,b7 the interest rate that is determined by reducing by not less than #a_/b of #a percent and not more than #a percent 7but to not less than zero percent7 the interest rate on the loan to be provided by the ,,dfc to the qualified corporation1 whichever is the lesser4 7b7 ,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 ,states4 7c7 ,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 basis4 7d7 ,conditions on provision of loans ,the ,,dfc-- 7#a7 may provide loans under this section to a corporation only if the loans are commercially viable1 as determined by the ,,dfc2 and 7#b7 shall determine an appropriate amount of time for repayment of loans under this section to a corporation4 7e7 ,plan ,not later than #ahj days after the date of the enactment of this ,act1 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 section1 including to expedite the approval process for the provision of such assistance4 #d4 ,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 7a7 ,in general ,notwithstanding any other provision of law1 the ,president shall proclaim duty-free treatment 7or other preferential treatment7 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 #c1 subject to such terms and conditions as the ,president determines to be appropriate4 7b7 ,regulations ,the ,president shall prescribe such regulations as may be necessary to carry out this section4 7c7 ,effective period 7#a7 ,in general ,subsection 7a7 shall apply with respect to a good or service made or produced in a ,latin ,american or ,caribbean country by a corporation for the #ae-year period beginning on the date on which the corporation begins operations in such country4 7#b7 ,rule of construction ,nothing in this section may be construed to affect duty-free treatment 7or other preferential treatment7 for any good or service made or produced in a ,latin ,american or ,caribbean country by a qualified corporation after the #ae-year period described in paragraph 7#a7 if goods and services from such country are otherwise generally eligible for duty-free treatment 7or other preferential treatment74 #e4 ,additional conditions on receipt of assistance under section #c and duty-free treatment 7or other preferential treatment7 under section #d 7a7 ,in general ,the appropriate ,federal agency may not provide assistance under section #c or duty-free treatment 7or other preferential treatment7 under section #d to a corporation unless-- 7#a7 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 provided2 7#b7 the corporation makes a binding commitment to the agency that on and after the date the assistance is provided-- 7,a7 the corporation will not come under the ownership or control of the ,government of the ,people's ,republic of ,china or the ,chinese ,communist ,party1 the ,government of the ,russian ,federation1 or any other foreign adversary2 and 7,b7 the corporation will not have its headquarters in the ,people's ,republic of ,china1 the ,russian ,federation1 or any other foreign adversary2 7#c7 within #b years after the date described in paragraph 7#b71 and subject to an additional extension as determined appropriate by the agency1 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 country2 and 7#d7 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 7#b7 or the last day of the extension described in paragraph 7#c71 as the case may be4 7b7 ,compliance determinations 7#a7 ,in general ,the appropriate ,federal agency1 in coordination with the ,department of ,state1 shall make all determinations regarding compliance with the provisions of subsection 7a74 7#b7 ,non-compliance actions ,a qualified corporation that has received assistance under section #c or duty-free treatment 7or other preferential treatment7 under section #d that is subsequently determined by the appropriate ,federal agency not to be in compliance with the provisions of subsection 7a7 shall be subject to the following actions3 7,a7 ,any good or service made or produced in a ,latin ,american or ,caribbean country by the corporation 7other than a good or service made or produced in a free trade zone or which is subject to benefits under a free trade agreement7 shall not be eligible for duty-free treatment 7or other preferential treatment7 under section #d4 7,b7 ,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 rate4 7c7 ,appropriate ,federal agency defined ,in this section1 the term appropriate ,federal agency means-- 7#a7 with respect to actions relating to assistance under section #c1 the ,,dfc2 and 7#b7 with respect to actions relating to duty-free treatment 7or other preferential treatment7 under section #d1 the ,united ,states ,trade ,representative4 #f4 ,expenses paid for with tariffs collected from the ,people's ,republic of ,china 7a7 ,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 7b74 7b7 ,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 ,china4 7c7 ,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 ,act4 7d7 ,timing of transfers1 etc ,rules similar to the rules of section #ifja of the ,internal ,revenue ,code of #aihf shall apply with respect to appropriations to and from such trust fund under subsections 7b7 and 7c74 #g4 ,amendments to the ,,build ,act of #bjah 7a7 ,statement of policy ,section #adaa of the ,better ,utilization of ,investments ,leading to ,development ,act of #bjah 7#bb ,u4,s4,c4 #ifaa7 is amended-- 7#a7 in paragraph 7#g71 by striking and at the end2 7#b7 in paragraph 7#h71 by striking the period at the end and inserting a semicolon2 and 7#c7 by adding at the end the following3 7#i7 to further ,united ,states economic growth by prioritizing ,united ,states-owned businesses in providing support under title ,,ii2 and 7#aj7 to further ,united ,states national security by prioritizing the production of goods in critical industries1 as determined by the ,corporation1 in consultation with the ,department of ,homeland ,security4 4 7b7 ,prohibition on support for state-,owned enterprises 7#a7 ,in general ,title ,v of the ,better ,utilization of ,investments ,leading to ,development ,act of #bjah 7#bb ,u4,s4,c4 #ifga et seq47 is amended by adding at the end the following3 #adee4 ,prohibition on support for entities owned or controlled by foreign governments 7a7 ,in general ,except as provided in subsection 7b71 the ,corporation is prohibited from providing support under title ,,ii for an entity owned or controlled by a foreign government4 7b7 ,exception 7#a7 ,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 adversary4 7#b7 ,foreign adversary defined ,in this subsection1 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 persons4 4 7#b7 ,clerical amendment ,the table of contents for the ,,faa ,reauthorization ,act of #bjah 7#di ,u4,s4,c4 #djaja note7 is amended by inserting after the item relating to section #aded the following3 ,sec4 #adee4 ,prohibition on support for entities owned or controlled by foreign governments4 4 #h4 ,trade negotiating authority 7a7 ,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 7b74 7b7 ,conditions described ,the conditions described in this subsection are the following3 7#a7 ,the country is taking steps to reduce migration in violation of the ,immigration and ,nationality ,act4 7#b7 ,the country is taking steps to reduce economic dependence on the ,people's ,republic of ,china4 7#c7 ,the country allows ,taiwan to establish and maintain a commercial office in the country4 #i4 ,agreements for cooperation pursuant to section #abc of the ,atomic ,energy ,act of #aied 7a7 ,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 #abc of the ,atomic ,energy ,act of #aied 7#db ,u4,s4,c4 #baec7 to approve the sales of nuclear reactors to such countries1 or to qualified corporations that receive assistance under this ,act1 but only if-- 7#a7 the ,president determines that such sales will not threaten the national security of the ,united ,states2 and 7#b7 the countries or qualified corporations1 as the case may be1 meet the conditions described in paragraphs 7#a71 7#b71 and 7#c7 of section #h7;b74 7b7 ,technical assistance and expertise ,the ,administrator of the ,united ,states ,agency for ,international ,development1 in consultation with the ,secretary of ,energy and the ,,dfc1 may provide technical assistance and expertise in electrical grid and energy efficiency improvements related to sales under subsection 7a71 as appropriate4 #aj4 ,temporary increased expensing for relocating manufacturing from the ,people's ,republic of ,china to a ,latin ,american or ,caribbean country 7a7 ,in general ,for purposes of section #afh7k7 of the ,internal ,revenue ,code of #aihf1 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 ,act1 and before ,january #a1 #bjch-- 7#a7 such property shall be treated as qualified property 7within the meaning of such section71 7#b7 the applicable percentage otherwise determined under paragraph 7#f7 of such section with respect to such property shall be #ge percent1 and 7#c7 paragraphs 7#h7 and 7#aj7 of such section shall not apply4 7b7 ,qualified relocated manufacturing property ,for purposes of this section-- 7#a7 ,in general ,the term qualified relocated manufacturing property means qualified property 7within the meaning of section #afh7k7 of such ,code7 or nonresidential real property 7as defined in section #afh7;e77#b77;,b7 of such ,code7 which is-- 7,a7 placed in service in a ,latin ,american or ,caribbean country by a qualified manufacturer1 and 7,b7 is acquired by such qualified manufacturer in connection with a qualified relocation of manufacturing4 7#b7 ,qualified relocation of manufacturing 7,a7 ,in general ,the term qualified relocation of manufacturing means1 with respect to any qualified manufacturer1 the relocation of the manufacturing of any tangible personal property from the ,people's ,republic of ,china to a ,latin ,american or ,caribbean country4 7,b7 ,relocation of property not required ,for purposes of subparagraph 7,a71 manufacturing shall not fail to be treated as relocated merely because property used in such manufacturing was not relocated4 7,c7 ,relocation of not less than equivalent productive capacity required ,for purposes of subparagraph 7,a71 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 ,china4 7c7 ,qualified manufacturer ,for purposes of this section1 the term qualified manufacturer means any person-- 7#a7 which is engaged in the trade or business of manufacturing any tangible personal property1 7#b7 with respect to which the ,secretary of the ,treasury 7or the ,secretary's delegate7 has made the determination described in section #e7;a77#a71 and 7#c7 which has entered into a binding agreement with such ,secretary 7or such delegate7 to meet the requirements of section #e7;a77#b7 which is enforceable under terms similar to the terms of section #e7;b74 #aa4 ,definitions ,in this ,act3 7#a7 ,,dfc ,the term ,,dfc means the ,united ,states ,international ,development ,finance ,corporation4 7#b7 ,qualified corporation ,the term qualified corporation does not include a ,state-owned enterprise4 7#c7 ,qualified moving costs defined ,the term qualified moving costs means-- 7,a7 the costs of moving inventory1 equipment1 and supplies from the ,people's ,republic of ,china to a ,latin ,american or ,caribbean country2 and 7,b7 the costs of workforce development and construction of facilities4 7#d7 ,latin ,american or ,caribbean country2 ,western ,hemisphere 7,a7 ,in general ,the terms ,latin ,american or ,caribbean country and ,western ,hemisphere-- 7i7 mean a country in the ,caribbean ,sea1 ,south ,america1 or ,central ,america1 and ,mexico2 and 7ii7 except as provided in subparagraph 7,b71 do not include ,cuba or ,venezuela4 7,b7 ,exception ,the term ,latin ,american or ,caribbean country shall include ,cuba or ,venezuela if the ,secretary of ,state determines and certifies to ,congress that-- 7i7 the government of such country-- 7,i7 has held free and fair presidential and legislative elections1 as determined by independent international observers1 and subsequent elections are scheduled2 7,,ii7 respects and upholds human rights2 7,,iii7 is taking significant steps to privatize its economy and institute a free market2 7,,iv7 permits the international community to provide humanitarian1 governance1 and economic development assistance2 7,v7 has freed all unlawfully detained ,united ,states citizens1 legal permanent residents1 and political prisoners2 and 7,,vi7 has expelled all security services from foreign adversaries from the country2 and 7ii7 the prior authorities of such country have renounced their illegitimate claim to power4 7#e7 ,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 7daily or weekly71 commonly referred to as the ,h4#ae release4