,,ii #aaith ,,congress #ast ,session ,s4 #dbi ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,february #e1 #bjbe,mr4 ,young 7for himself1 ,mr4 ,coons1 ,mr4 ,cornyn1 and ,mr4 ,hickenlooper7 introduced the following bill2 which was read twice and referred to the ,committee on ,finance ,a ,,bill ,to enhance the economic and national security of the ,united ,states by securing a reliable supply of critical minerals and rare earth elements through trade agreements and strategic partnerships4 #a4 ,short title ,this ,act may be cited as the ,securing ,trade and ,resources for ,advanced ,technology1 ,economic ,growth1 and ,international ,commerce in ,minerals ,act or ,,strategic ,minerals ,act4 #b4 ,definitions ,in this ,act3 7#a7 ,appropriate congressional committees ,the term appropriate congressional committees 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-- 7,a7 any foreign country or territory1 including any overseas dependent territory or possession of a foreign country2 and 7,b7 the ,trust ,territory of the ,pacific ,islands4 7#c7 ,covered free trade agreement ,the term covered free trade agreement means an agreement with one or more countries that-- 7,a7 exclusively focuses on the critical minerals and rare earth elements sector2 7,b7 reduces barriers to trade among the parties to the agreement2 7,c7 includes enforceable provisions to prevent any foreign entity of concern from gaining any benefit from the agreement2 and 7,d7 is approved by ,congress4 7#d7 ,critical mineral ,the term critical mineral has the meaning given that term in section #gjjb7;a7 of the ,energy ,act of #bjbj 7#cj ,u4,s4,c4 #afjf7;a774 7#e7 ,foreign entity of concern ,the term foreign entity of concern has the meaning given that term in section #djbjg of the ,infrastructure ,investment and ,jobs ,act 7#db ,u4,s4,c4 #ahgda74 7#f7 ,rare earth element ,the term rare earth element means cerium1 dysprosium1 erbium1 europium1 gadolinium1 holmium1 lanthanum1 lutetium1 neodymium1 praseodymium1 promethium1 samarium1 scandium1 terbium1 thulium1 ytterbium1 or yttrium4 7#g7 ,trade ,representative ,the term ,trade ,representative means the ,united ,states ,trade ,representative4 #c4 ,briefing on covered free trade agreements 7a7 ,in general ,not later than #abj days after the date of the enactment of this ,act1 the ,trade ,representative1 in consultation with the ,secretary of ,state1 the ,secretary of ,defense1 the ,secretary of ,energy1 and the ,secretary of the ,interior1 as appropriate1 shall provide to the appropriate congressional committees a classified briefing on the feasibility and advisability of pursuing and adopting covered free trade agreements4 7b7 ,elements ,the briefing required by subsection 7a7 shall include-- 7#a7 an analysis of the most appropriate types of agreements 7bilateral1 plurilateral1 or multilateral7 for achieving the negotiating objectives set forth in section #d7;d71 including considerations of economic impact1 strategic partnerships1 negotiation feasibility1 and national security implications2 7#b7 recommendations for which type or types of agreements are most needed to effectively secure critical minerals and rare earth elements supply chains in alignment with the national security and economic interests of the ,united ,states2 and 7#c7 an assessment of potential challenges and proposed solutions in pursuing the recommended type or types of agreement1 including legal1 regulatory1 and geopolitical considerations4 #d4 ,negotiating and trade agreements authority for covered free trade agreements 7a7 ,authority ,to negotiate and enter into agreements 7#a7 ,in general ,in order to enhance the economic well-being1 national security1 and economic competitiveness of the ,united ,states1 the ,president1 acting through the ,trade ,representative1 may negotiate1 enter into1 and enforce a covered free trade agreement when the ,president determines that it is in the national interest to do so4 7#b7 ,limitation ,the ,president may not initiate negotiations for a covered free trade agreement under paragraph 7#a7 until the date on which the ,trade ,representative provides the briefing required by section #c7;a7 to the appropriate congressional committees4 7b7 ,modifications permitted ,the ,president may proclaim such modification or continuance of any existing duty1 or such continuance of existing duty-free or excise treatment1 as the ,president determines to be required or appropriate to carry out a covered free trade agreement entered into under subsection 7a77#a74 7c7 ,negotiating objectives 7#a7 ,overall negotiating objectives ,the negotiating objectives of the ,united ,states for a covered free trade agreement are-- 7,a7 to strengthen supply chains of critical minerals and rare earth elements2 7,b7 to reduce or eliminate barriers and distortions that inhibit to trade and investment in critical minerals and rare earth elements2 7,c7 to strengthen international trade and investment disciplines and procedures specific to critical minerals and rare earth elements1 including effective dispute settlement mechanisms2 7,d7 to foster economic growth1 raise living standards1 enhance the competitiveness of the ,united ,states1 promote full employment1 and contribute to the global economy through the development and trade of critical minerals and rare earth elements2 7,e7 to promote policies that advance sustainable practices and circularity in the production and processing of critical minerals and rare earth elements2 7,f7 to encourage the development and adoption of innovative technologies and practices that optimize the use of critical resources2 7,g7 to promote respect for worker rights and the rights of children consistent with core labor standards only as stated in the ,international ,labour ,organization ,declaration on ,fundamental ,principles and ,rights at ,work and its ,follow-,up 7#aiih7 and an understanding of the relationship between trade and worker rights2 7,h7 to seek provisions in the agreement under which parties ensure they do not weaken or reduce the protections afforded in domestic environmental and labor laws as an encouragement for trade2 7,i7 to afford small businesses equitable trade benefits and to reduce or eliminate trade and investment barriers that disproportionately impact small businesses2 7,j7 to promote universal ratification and full compliance with the ,international ,labour ,organization ,convention 7,,ilo ,no4 #ahb7 concerning the ,prohibition and ,immediate ,action for the ,elimination of the ,worst ,forms of ,child ,labor1 adopted at ,geneva1 ,june #ag1 #aiii2 7,k7 to promote universal ratification and full compliance with the ,international ,labour ,organization ,convention 7,,ilo ,no4 #agf7 concerning ,safety and ,health in ,mines1 adopted at ,geneva1 ,june #bb1 #aiie2 7,l7 to encourage ownership transparency throughout the critical minerals and rare earth elements supply chain to prevent undue influence from foreign entities of concern2 7,m7 to protect legitimate health1 safety1 essential security1 and consumer interests1 ensuring that the agreement does not require changes to ,united ,states laws relating to those interests unless expressly agreed upon2 and 7,n7 to ensure that the agreement does not require changes to ,united ,states statutes or regulations4 7#b7 ,consideration of existing negotiating objectives ,in conducting negotiations under this section1 the ,president shall take into account the principal trade negotiating objectives set forth in paragraphs 7#e71 7#g71 and 7#aj7 of section #ajb7;b7 of the ,bipartisan ,congressional ,trade ,priorities and ,accountability ,act of #bjae 7#ai ,u4,s4,c4 #dbja7;b771 to the extent that those objectives are pertinent to the objectives described in paragraph 7#a74 7d7 ,consultation with and notification to ,congress before initiating negotiations ,before initiating negotiations under subsection 7a77#a71 or issuing a proclamation under subsection 7b71 the ,president shall-- 7#a7 consult with the appropriate congressional committees regarding the intention to enter into the negotiations or issue the proclamation1 as the case may be2 and 7#b7 notify the appropriate congressional committees in writing at least #cj days before the initiation of the negotiations or the issuance of the proclamation1 as the case may be1 that includes-- 7,a7 a statement of the intention to initiate the negotiations or issue the proclamation2 7,b7 in the case of negotiations-- 7i7 an identification of the country or countries with which the ,president intends to initiate negotiations2 and 7ii7 a description of the specific objectives for the negotiations2 and 7,c7 an assessment of the potential impact of the negotiations or proclamation1 as the case may be1 on the economic and strategic interests of the ,united ,states4 7e7 ,participating countries 7#a7 ,in general ,subject to paragraph 7#b71 the ,president may-- 7,a7 determine which countries to negotiate with toward a covered free trade agreement2 and 7,b7 after the implementation of any such agreement and as conditions warrant1 identify and engage in negotiations with additional countries that wish to accede to the agreement4 7#b7 ,exclusive benefits 7,a7 ,in general ,any covered free trade agreement entered into under subsection 7a77#a7 shall provide trade benefits1 including tariff reductions1 preferential treatment1 or other trade advantages related to critical minerals and rare earth elements1 exclusively to countries that are parties to the agreement4 7,b7 ,status of non-participants ,countries that are not parties to a covered free trade agreement may not receive the trade benefits provided under the agreement1 but nothing in this ,act shall be construed to impose additional restrictions or penalties on such countries4 7#c7 ,treatment of nonmarket economy countries 7,a7 ,in general ,the ,president may not negotiate a covered free trade agreement with a country determined to be a nonmarket economy country pursuant to section #gga7ah7 of the ,tariff ,act of #aicj 7#ai ,u4,s4,c4 #afgg7ah774 7,b7 ,after entry into force ,a country described in subparagraph 7,a7 that is not designated as a foreign country of concern 7as defined in section #bca4ajb of title #ae1 ,code of ,federal ,regulations7 may accede to a covered free trade agreement after entry into force of the agreement if a joint resolution is enacted into law approving the accession of that country to the agreement4 7f7 ,bills qualifying for trade authorities procedures 7#a7 ,in general ,the provisions of section #aea of the ,trade ,act of #aigd 7#ai ,u4,s4,c4 #baia7 7in this section referred to as trade authorities procedures7 apply to a bill of either ,house of ,congress which contains provisions described in paragraph 7#b7 to the same extent as such section #aea applies to implementing bills under that section4 ,a bill to which this subsection applies shall hereafter in this section be referred to as an implementing bill4 7#b7 ,provisions specified ,the provisions described in this paragraph are-- 7,a7 a provision approving a covered free trade agreement and approving the statement of administrative action1 if any1 proposed to implement that agreement2 and 7,b7 if changes in existing laws or new statutory authority are required to implement that agreement1 only such provisions as are strictly necessary or appropriate to implement the agreement1 either repealing or amending existing laws or providing new statutory authority4 7g7 ,relationship to ,bipartisan ,congressional ,trade ,priorities and ,accountability ,act of #bjae ,a covered free trade agreement1 including such an agreement that does not require changes to ,united ,states law1 shall not enter into force with respect to the ,united ,states and an implementing bill that relates to such an agreement shall not qualify for trade authorities procedures unless the following requirements of the ,bipartisan ,congressional ,trade ,priorities and ,accountability ,act of #bjae 7#ai ,u4,s4,c4 #dbja et seq47 are carried out with respect to that agreement1 to the same extent as would be required with respect to an agreement entered into under section #ajc7;b7 of that ,act 7#ai ,u4,s4,c4 #dbjb7;b771 notwithstanding the expiration of authority to enter into an agreement under such section #ajc7;b73 7#a7 ,the congressional oversight and consultation requirements under section #ajd of that ,act 7#ai ,u4,s4,c4 #dbjc74 7#b7 ,the notification1 consultation1 and reporting requirements under section #aje of that ,act 7#ai ,u4,s4,c4 #dbjd74 7#c7 ,the implementation procedures under section #ajf of that ,act 7#ai ,u4,s4,c4 #dbje74 7h7 ,termination of authority 7#a7 ,negotiation and agreements 7,a7 ,in general ,the authority of the ,president under subsection 7a77#a7 to negotiate and enter into covered free trade agreements terminates on ,july #a1 #bjce4 7,b7 ,treatment of modifications ,substantial modifications to1 or substantial additional provisions of1 a covered free trade agreement that are entered into after ,july #a1 #bjce1 are not covered by the authority under subsection 7a77#a74 7#b7 ,trade authorities procedures ,the trade authorities procedures apply to an implementing bill with respect to a covered free trade agreement entered into under subsection 7a77#a7 if-- 7,a7 the agreement is entered into on or before ,july #a1 #bjce2 and 7,b7 the implementing bill is submitted to ,congress not later than one year after the agreement is entered into4 7#c7 ,enforcement ,the authority under subsection 7a77#a7 to enforce a covered free trade agreement remains in effect after ,july #a1 #bjce1 notwithstanding the termination under paragraph 7#a7 of the authority to negotiate and enter into such agreements4 #e4 ,inclusion of businesses of parties to covered free trade agreements in definition of domestic source for title ,,iii of ,defense ,production ,act of #aiej ,section #gjb7g77;,b7 of the ,defense ,production ,act of #aiej 7#ej ,u4,s4,c4 #deeb7g77;,b77 is amended-- 7#a7 in clause 7i77,i7-- 7,a7 in item 7aa71 by striking 2 or and inserting a semicolon2 7,b7 in item 7bb71 by striking 2 and and inserting 2 or2 and 7,c7 by adding at the end the following3 7cc7 subject to clause 7iii71 the territory of a party to a covered free trade agreement 7as defined in section #b of the ,securing ,trade and ,resources for ,advanced ,technology1 ,economic ,growth1 and ,international ,commerce in ,minerals ,act72 and 2 and 7#b7 by adding at the end the following3 7iii7 ,additional requirements for parties to covered free trade agreements 7,i7 ,in general ,a business concern described in clause 7i77,i77cc7 may be treated as a domestic source-- 7aa7 only for purposes of the exercise of authorities under section #cjc7;a77#a7 relating to minerals activities related to minerals the supply of which in the ,united ,states and ,canada is deficient2 and 7bb7 only if1 for minerals activities carried out pursuant to such exercise of authorities-- 7,,aa7 the minerals are processed1 beneficiated1 or recycled only by entities owned by entities organized under the laws of the ,united ,states and not more than #aj percent or more of the equity interests of which are owned or controlled1 directly or indirectly1 by any foreign entity of concern1 through any contract1 arrangement1 understanding1 relationship1 or otherwise2 7,,bb7 the business concern does not sell or transfer any of the minerals extracted1 processed1 beneficiated1 refined1 recycled1 or otherwise transformed1 or any revenues derived from those minerals1 to entities located in the ,people's ,republic of ,china or to entities owned1 directly or indirectly1 held1 or controlled by any foreign entity of concern2 and 7,,cc7 no mine used for the mining of such minerals is owned1 directly or indirectly1 held1 or controlled by any foreign entity of concern4 7,,ii7 ,determination of deficiency ,for purposes of subclause 7,i77aa71 in determining if the supply in the ,united ,states and ,canada of a critical mineral or rare earth element is deficient1 the ,secretary of ,defense1 in consultation with the ,secretary of the ,interior and the ,secretary of ,energy1 shall consider factors including-- 7aa7 current domestic production levels2 7bb7 projected demand for national defense and critical infrastructure2 7cc7 dependence on foreign sources1 especially from foreign entities of concern2 and 7dd7 potential for supply chain disruptions4 7,,iii7 ,compliance and verification 7aa7 ,guidance ,the ,secretary of ,defense shall provide guidance to business concerns on compliance with this clause4 7bb7 ,notice of and penalties for noncompliance ,if a business concern is found to be in violation of this clause-- 7,,aa7 the ,secretary of ,defense shall provide written notice to the business concern detailing the nature of the violation and the penalties to be imposed2 7,,bb7 the business concern may be required to repay any funds received under section #cjc7;a77#a72 7,,cc7 the business concern may be disqualified from future contracts or financial assistance under this ,act2 7,,dd7 the business concern may be subject to civil penalties under section #gje2 and 7,,ee7 the matter may be referred to the ,attorney ,general for criminal prosecution under applicable laws4 7,,iv7 ,definitions ,in this clause3 7aa7 ,beneficiate2 beneficiation ,the terms beneficiate and beneficiation mean the crushing and grinding of hardrock mineral ore and such processes as are employed to free the mineral from other constituents1 including physical and chemical separation techniques4 7bb7 ,control ,the term control means having the ability1 directly or indirectly1 to determine 7without regard to whether exercised through #a or more corporate structures7 the manner in which an entity conducts mineral activities1 through any means1 including-- 7,,aa7 ownership interest2 7,,bb7 authority to commit the real or financial assets of the entity2 7,,cc7 position as a director1 officer1 or partner of the entity2 or 7,,dd7 contractual arrangement4 7cc7 ,critical mineral ,the term critical mineral has the meaning given that term in section #gjjb7;a7 of the ,energy ,act of #bjbj 7#cj ,u4,s4,c4 #afjf7;a774 7dd7 ,deficient ,the term deficient1 with respect to the supply in the ,united ,states and ,canada of a critical mineral or rare earth element1 means that supply is insufficient to meet national defense and essential civilian industrial requirements1 as determined by the ,secretary of ,defense1 in consultation with the ,secretary of the ,interior and the ,secretary of ,energy4 7ee7 ,foreign entity of concern ,the term foreign entity of concern has the meaning given that term in section #djbjg of the ,infrastructure ,investment and ,jobs ,act 7#db ,u4,s4,c4 #ahgda74 7ff7 ,mineral activities ,the term mineral activities means any activity carried out on a mining claim1 millsite1 or tunnel site1 for1 related to1 or incidental to1 mining1 beneficiation1 processing1 refining1 alloying1 or recycling activities for any critical mineral or rare earth element4 7gg7 ,processing ,the term processing has the meaning given that term in ,treasury ,regulation section #a4cj;,d-#b7;b77#cg7 7or a successor regulation74 7hh7 ,rare earth element ,the term rare earth element has the meaning given that term in section #b of the ,securing ,trade and ,resources for ,advanced ,technology1 ,economic ,growth1 and ,international ,commerce in ,minerals ,act4 7ii7 ,recycling ,the term recycling has the meaning given that term in ,treasury ,regulation section #a4cj;,d-#b7;b77#dc7 7or a successor regulation74 7jj7 ,revenues ,the term revenues includes any income1 profits1 dividends1 royalties1 or other financial benefits obtained from the sale1 transfer1 or other disposition of the minerals produced4 7kk7 ,sell or transfer ,the term sell or transfer includes any transaction that conveys ownership1 possession1 or control of minerals produced1 or any interest therein1 including sales1 leases1 exchanges1 or gifts4 4