,,ii #aaith ,,congress #ast ,session ,s4 #ccii ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,december #i1 #bjbe,mr4 ,young 7for himself1 ,mr4 ,coons1 ,mr4 ,moran1 and ,mr4 ,bennet7 introduced the following bill2 which was read twice and referred to the ,committee on ,finance ,a ,,bill ,to authorize the ,president to enter into digital trade agreements1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,digital ,trade ,promotion ,act of #bjbe4 #b4 ,findings2 sense of ,congress 7a7 ,findings ,congress makes the following findings3 7#a7 ,the ,bureau of ,economic ,analysis found that the digital economy contributed roughly #aj percent of ,united ,states gross domestic product and supported approximately #h1ijj1jjj ,united ,states jobs in #bjbb4 7#b7 ,in #bjbc1 ,united ,states exports of digital services surpassed #fee1jjj1jjj1jjj1 accounting for more than half of all ,united ,states services exports and generating a digital services trade surplus for the ,united ,states of roughly #bff1hjj1jjj1jjj4 7#c7 ,digital trade bolsters the economy by enabling the sale of goods and the supply of services across borders4 7#d7 ,digital trade has become increasingly vital to ,united ,states workers and businesses of all sizes1 including manufacturers1 farmers1 industrial facilities1 service suppliers1 and countless small and medium-sized enterprises that use digital technology to produce and export goods and services across the world4 7#e7 ,digital trade is crucial for the global competitiveness of the ,united ,states1 as ,united ,states industry relies on free and secure cross-border data flows to deploy cutting-edge technology essential to innovation and productivity4 7#f7 ,digital innovation has provided new opportunities for economic development1 entrepreneurship1 and growth in developing countries around the world4 7#g7 ,countries have negotiated international rules governing digital trade in various bilateral and plurilateral agreements1 but those rules remain fragmented4 7#h7 ,the ,united ,states1 through free trade agreements and trade negotiations1 has been a leader in developing rules and standards governing digital trade and electronic commerce that have helped the ,united ,states and partners of the ,united ,states unlock the economic potential of digital innovation4 7#i7 ,certain countries1 including the ,people's ,republic of ,china1 are advancing discriminatory digital policies that undermine ,united ,states companies and workers by enabling censorship1 surveillance1 forced technology transfers1 and data flow restrictions at the expense of human rights1 the rule of law1 privacy1 and an open internet4 7b7 ,sense of ,congress ,it is the sense of ,congress that-- 7#a7 there is a need for agreements on digital trade1 as ,congress recognized by its support for a robust digital trade chapter in the ,united ,states-,mexico-,canada ,agreement1 which has been of critical importance to all sectors of the economy2 7#b7 negotiating strong digital trade principles and commitments with countries across the globe enables the ,united ,states to unite like-minded countries around common standards and ensure that principles of democracy1 rule of law1 freedom of speech1 human and worker rights1 privacy1 and a free and open internet are at the very core of digital governance2 and 7#c7 even as domestic statutes and regulations governing the digital economy continue to develop and evolve1 the ,united ,states should cooperate with its allies and trading partners to advance global digital trade rules that reflect ,united ,states interests and values4 #c4 ,definitions ,in this ,act3 7#a7 ,appropriate committees of ,congress ,the term appropriate committees of ,congress means-- 7,a7 the ,committee on ,finance of the ,senate2 and 7,b7 the ,committee on ,ways and ,means of the ,house of ,representatives4 7#b7 ,country ,the term country means any foreign country or territory1 including any overseas dependent territory or possession of a foreign country4 7#c7 ,trade ,representative ,the term ,trade ,representative means the ,united ,states ,trade ,representative4 7#d7 ,digital trade agreement ,the term digital trade agreement means an agreement with one or more trusted trade partners entered into under section #d4 #d4 ,authority to enter into digital trade agreements 7a7 ,in general ,the ,president may1 subject to the requirements under section #e1 negotiate1 enter into1 and enforce a digital trade agreement with a country or countries4 7b7 ,considerations ,in determining whether to enter into negotiations for a digital trade agreement with a country pursuant to subsection 7a71 the ,president shall take into account whether the government of the country has-- 7#a7 expressed a desire to enter into such an agreement2 7#b7 adhered to and implemented the commitments and obligations under any existing free trade agreements to which that country and the ,united ,states are parties2 7#c7 implemented measures to reduce or eliminate unnecessary trade barriers and distorting practices affecting electronic commerce2 7#d7 maintained the rule of law by enacting and enforcing laws and regulations in a clear1 publicized1 transparent1 and nondiscriminatory manner2 and 7#e7 adopted and enforced laws that provide adequate and effective protection of intellectual property rights reflecting a standard of protection similar to that found under ,united ,states law4 7c7 ,content of digital trade agreements ,a digital trade agreement shall apply to all sectors of the economy and provide for-- 7#a7 nondiscriminatory treatment of digital products and digital services2 7#b7 prohibition of discriminatory taxes on digital services2 7#c7 the free flow of data across borders and the prohibition of data localization requirements2 7#d7 frameworks for the secure transfer and sharing of industrial data and other sensitive data that bolster data security1 including through the promotion and protection of end-to-end encryption2 7#e7 the protection of consumers engaged in electronic commerce1 including the promotion of interoperability mechanisms1 such as the ,cross-,border ,privacy ,rules of the ,asia-,pacific ,economic ,cooperation1 or successor frameworks1 to facilitate international data transfers while ensuring the protection of the privacy of personal information2 7#f7 prohibition of forced transfer or disclosure of source code1 algorithms1 cryptographic technology1 trade secrets1 and other proprietary technology as a condition of market access2 7#g7 cooperation to advance interoperable1 risk-based frameworks for the development1 deployment1 and cross-border trade in emerging digital technologies1 including artificial intelligence and quantum computing2 7#h7 cooperation in addressing cybersecurity threats and adherence to risk-based approaches to mitigating cybersecurity threats1 including sharing of information and coordination on incident response and best practices based on consensus standards2 7#i7 prohibition of customs duties on electronic transmissions1 including on content transmitted electronically2 7#aj7 promotion of voluntary1 international standards for digital technologies and services2 7#aa7 promotion of alignment on export controls1 sanctions1 and investment review mechanisms that impact digital trade2 7#ab7 greater transparency in domestic regulation of services2 7#ac7 promotion of risk-based approaches to government procurement of hardware and software to support secure digital infrastructure2 7#ad7 other provisions that1 in the judgment of the ,trade ,representative1 would advance the national interests of the ,united ,states with respect to digital trade2 and 7#ae7 exceptions to the provisions described in paragraphs 7#a7 through 7#ad7 to allow for the protection of legitimate public policy objectives and national security4 #e4 ,congressional oversight1 notice1 consultations1 access to information1 and review 7a7 ,notice ,not later than #fj days before initiating negotiations with a country under section #d7;a7 for a digital trade agreement1 the ,president shall submit to ,congress written notice of the intention of the ,president to enter into the negotiations1 which shall include the date on which negotiations will begin and the country with which the ,president seeks to enter into the agreement4 7b7 ,consultation with members of ,congress 7#a7 ,consultation during negotiations and access to information ,in the course of negotiations under section #d7;a7 for a digital trade agreement1 the ,trade ,representative shall-- 7,a7 meet upon request with the appropriate committees of ,congress regarding negotiating objectives1 the status of negotiations in progress1 and potential effects to the laws of the ,united ,states resulting from the agreement2 7,b7 upon request by the appropriate committees of ,congress1 provide access to pertinent documents relating to the negotiations2 and 7,c7 consult closely and on a timely basis with1 and keep fully apprised of the negotiations1 the appropriate committees of ,congress4 7#b7 ,consultation before entry into agreement ,before entering into a digital trade agreement under section #d1 the ,trade ,representative shall consult with-- 7,a7 the appropriate committees of ,congress2 and 7,b7 each other committee of the ,senate and the ,house of ,representatives1 and each joint committee of ,congress1 that has jurisdiction over legislation involving a subject matter that would be affected by the agreement4 7c7 ,consultation with ,federal agencies ,in the course of negotiations under section #d7;a7 for a digital trade agreement1 the ,trade ,representative shall inform and consult with any ,federal agency having expertise in the matters being negotiated4 7d7 ,report to ,congress ,not later than #fj days before the date on which the ,president enters into a digital trade agreement with a country under section #d1 the ,president shall submit to ,congress a report describing-- 7#a7 the nature and scope of the agreement2 7#b7 the proposed duration of the agreement2 7#c7 how and to what extent the agreement will achieve the applicable purposes1 policies1 priorities1 and objectives of this ,act2 7#d7 whether sufficient evidence exists demonstrating that the country satisfies the conditions under section #d7;b72 and 7#e7 the proposed implementation of the agreement1 including the general effect of the agreement on existing laws4 7e7 ,congressional right ,to review and disapprove 7#a7 ,in general ,a digital trade agreement shall not take effect until-- 7,a7 the proposed agreement and the report required by subsection 7d7 with respect to that agreement have been submitted to ,congress2 and 7,b7 the review period required by paragraph 7#b7 following the date on which the proposed agreement has been submitted to ,congress under subparagraph 7,a7 has been exhausted1 during which period a joint resolution is not enacted under paragraph 7#d74 7#b7 ,review 7,a7 ,initial review ,unless extended under subparagraph 7,b7 or 7,c71 the review period under this paragraph with respect to a digital trade agreement is #cj days1 during which time ,congress shall review-- 7i7 the proposed agreement2 and 7ii7 whether-- 7,i7 the ,president failed or refused to provide notice with respect to the agreement in accordance with subsection 7a72 7,,ii7 the ,president failed or refused to consult with respect to the agreement in accordance with subsections 7b7 and 7c72 7,,iii7 the ,president failed or refused to submit to ,congress a report with respect to the agreement in accordance with subsection 7d72 or 7,,iv7 the ,president failed or refused to demonstrate that the agreement would achieve the applicable purposes1 policies1 priorities1 and objectives of this ,act4 7,b7 ,further review ,if1 during the #cj-;day period under subparagraph 7,a7 with respect to a digital trade agreement1 one ,house of ,congress adopts a resolution stating that the ,house of ,congress wishes to further review the proposed agreement1 the review period under this paragraph with respect to the proposed agreement shall be extended by a period of #fj days1 during which time the appropriate committees of ,congress shall engage the ,president with respect to the proposed agreement and the failures or refusals of the ,president specified under subparagraph 7,a74 7,c7 ,additional period ,if1 during the #fj-;day period under subparagraph 7,b7 with respect to a digital trade agreement1 one ,house of ,congress adopts a resolution stating that the ,house of ,congress wishes to further review the proposed agreement1 the review period under this paragraph with respect to the proposed agreement shall be further extended by a period of #cj days4 7#c7 ,procedures for considering resolutions ,a resolution under subparagraph 7,b7 or 7,c7 of paragraph 7#b7-- 7,a7 in the ,senate-- 7i7 may be introduced by any ,member of the ,senate2 7ii7 shall be referred to the ,committee on ,finance2 and 7iii7 may not be amended2 7,b7 in the ,house of ,representatives-- 7i7 may be introduced by any ,member of the ,house2 7ii7 shall be referred to the ,committee on ,ways and ,means or the ,committee on ,rules2 and 7iii7 may not be amended by either ,committee2 and 7,c7 the vote on passage of the resolution shall occur immediately following the conclusion of the debate on the digital trade agreement at issue and a single quorum call at the conclusion of the debate4 7#d7 ,disapproval ,if1 during the review period required under paragraph 7#b7 with respect to a digital trade agreement1 a joint resolution is enacted stating that ,congress does not favor the agreement1 the agreement shall not take effect4 #f4 ,monitoring and enforcement of continued compliance with digital trade agreements 7a7 ,monitoring ,the ,trade ,representative shall periodically monitor compliance by a country with the commitments and obligations of the country under a digital trade agreement4 7b7 ,actions in response to failure ,to comply 7#a7 ,determination and report of trade representative ,if the ,trade ,representative determines that a country has failed to satisfactorily implement1 maintain1 and enforce the commitments and obligations of the country under a digital trade agreement1 the ,trade ,representative shall submit to the ,president a report setting forth-- 7,a7 the determination and the findings that support the determination2 and 7,b7 based on such findings1 the recommendations of the ,trade ,representative for action or inaction under this subsection4 7#b7 ,determination of ,president ,not later than #cj days after receiving a report under paragraph 7#a7 with respect to a country1 the ,president shall-- 7,a7 determine whether the ,president concurs with the determination of the ,trade ,representative set forth in the report2 and 7,b7 if the ,president concurs1 determine whether-- 7i7 to suspend1 withdraw1 or prevent the application of the digital trade agreement with the country2 7ii7 to enter into a binding agreement with the country that commits the country-- 7,i7 to eliminate any burden or restriction on the ,united ,states resulting from the failure of the country to comply with the commitments and obligations of the country under a digital trade agreement2 and 7,,ii7 to provide the ,united ,states with such compensatory trade benefits as are negotiated between the ,trade ,representative and the country2 or 7iii7 to take such other actions as the ,trade ,representative considers necessary to encourage the country to adhere to the commitments and obligations of the country under a digital trade agreement4 7#c7 ,timeline for action ,if the ,president determines under paragraph 7#b77;,b7 to take action1 the ,president shall implement that action by not later than the date that is #ae days after the day on which the ,president determines to take action under that paragraph4