S. 2861

119th CONGRESS 1st Session

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 · Sponsor: Mr. McCormick · Committee: Committee on Finance

Table of contents

• S. 2861
  • SEC. 1. Short title
  • SEC. 2. North American alignment on foreign investment review

SEC. 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—
    • 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;
    • 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;
    • 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;
    • 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
    • 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 () would— 50 U.S.C. 4565
      • advance the national security interests of the United States; and
      • 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 (), during the first joint review conducted after the date of the enactment of this Act, the Trade Representative shall advocate for— 19 U.S.C. 4611
    • 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 (); and 50 U.S.C. 4565
    • 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:
    • 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
    • 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)
    • The term includes— technical assistance
    • The term Trade Representative means the United States Trade Representative.
    • 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
    • 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)