S.Amdt. 6369

1. Adds Subtitle G--Countering Economic Coercion Act of 2022 SEC. 1281. SHORT TITLE at the end of title XII

   Adds a section

   In S.Amdt. 5499 as proposed

   (2) Form of report.--The report required by paragraph (1) shall be submitted in unclassified form but may contain a classified annex.

   Inserted: Subtitle G--Countering Economic Coercion Act of 2022 SEC. 1281. SHORT TITLE.

   Inserted: This subtitle may be cited as the "Countering Economic Coercion Act of 2022".

   Inserted: SEC. 1282. SENSE OF CONGRESS.

   Inserted: The following is the sense of Congress:

   Inserted: (1) Foreign adversaries are increasingly using economic coercion to pressure, punish, and influence United States allies and partners.

   Inserted: (2) Economic coercion causes economic harm to United States allies and partners and creates malign influence on the sovereign political actions of such allies and partners.

   Inserted: (3) Economic coercion of United States allies and partners has negative effects on the national security of the United States.

   Inserted: (4) Economic coercion is often characterized by--

   Inserted: (A) arbitrary and discriminatory actions that seek to interfere with sovereign actions, violate international trade rules, and run counter to the rules-based international order;

   Inserted: (B) capricious and non-transparent actions taken without due process afforded;

   Inserted: (C) intimidation or threats of punitive actions; and

   Inserted: (D) informal actions that take place without explicit government action.

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   Inserted: (5) Recent acts of economic coercion have included instances in which foreign adversaries have--

   Inserted: (A) acted in a capricious and non-transparent manner to prevent or dissuade consumers from purchasing imports from a foreign trading partner;

   Inserted: (B) enacted discriminatory administrative fees or technical barriers to trade in goods and services in response to sovereign political actions taken by a foreign trading partner;

   Inserted: (C) arbitrarily restricted market access or otherwise limited the import of goods or services from a foreign trading partner;

   Inserted: (D) arbitrarily restricted investment in or export of goods or services to a foreign trading partner; and

   Inserted: (E) acted in a non-transparent manner to manipulate a private entity with the intent of causing economic harm to or influencing sovereign political actions of a foreign trading partner.

   Inserted: (6) Existing mechanisms for trade dispute resolution and international arbitration are inadequate for responding to economic coercion in a timely and effective manner as foreign adversaries exploit plausible deniability and lengthy processes to evade accountability.

   Inserted: (7) The United States should provide material support to foreign trading partners affected by economic coercion.

   Inserted: (8) Supporting foreign trading partners affected by economic coercion can lead to opportunities for United States businesses, investors, and workers to reach new markets and customers.

   Inserted: (9) Responding to economic coercion will be most effective when the United States provides relief to affected foreign trading partners in coordination with allies and like-minded countries.

   Inserted: (10) Such coordination will further demonstrate broad resolve against economic coercion.

   Inserted: SEC. 1283. DEFINITIONS.

   Inserted: In this Act:

   Inserted: (1) Appropriate congressional committees.--The term "appropriate congressional committees"--

   Inserted: (A) means--

   Inserted: (i) the Committee on Foreign Relations of the Senate; and

   Inserted: (ii) the Committee on Foreign Affairs of the House of Representatives; and

   Inserted: (B) includes--

   Inserted: (i) with respect to the exercise of any authority under section 1285(a)(1) or 1285(b)--

   Inserted: (I) the Committee on Finance of the Senate; and

   Inserted: (II) the Committee on Ways and Means of the House of Representatives; and

   Inserted: (ii) with respect to the exercise of any authority under paragraphs (6) or (8) of section 1285(a)--

   Inserted: (I) the Committee on Banking, Housing, and Urban Affairs of the Senate; and

   Inserted: (II) the Committee on Financial Services of the House of Representatives.

   Inserted: (2) Economic coercion.--The term "economic coercion" means actions, practices, or threats undertaken by a foreign adversary to restrain, obstruct, or manipulate trade, foreign aid, investment, or commerce in an arbitrary, capricious, or non-transparent manner with the intention to cause economic harm to achieve strategic political objectives or influence sovereign political actions.

   Inserted: (3) Export; export administration regulations; in-country transfer; reexport.--The terms "export", "Export Administration Regulations", "in-country transfer", and "reexport" have the meanings given those terms in section 1742 of the Export Control Reform Act of 2018 (50 U.S.C. 4801).

   Inserted: (4) Foreign adversary.--The term "foreign adversary" has the meaning given that term in section 8(c)(2) of the Secure and Trusted Communications Networks Act of 2019 (47 U.S.C. 1607(c)(2))).

   Inserted: (5) Foreign trading partner.--The term "foreign trading partner" means a jurisdiction that is a trading partner of the United States.

   Inserted: SEC. 1284. DETERMINATION OF ECONOMIC COERCION.

   Inserted: (a) In General.--If the President determines that a foreign trading partner is subject to economic coercion by a foreign adversary, the President may exercise, in a manner proportionate to the economic coercion, any authority described--

   Inserted: (1) in section 1285(a) to support or assist the foreign trading partner; or

   Inserted: (2) in section 1285(b) to penalize the foreign adversary.

   Inserted: (b) Information; Hearings.--To inform any determination or exercise of authority under subsection (a), the President shall--

   Inserted: (1) consult with the Secretary of State, the Secretary of Commerce, the Secretary of the Treasury, the United States Trade Representative, and the heads of other Federal agencies, as the President considers appropriate;

   Inserted: (2) seek information and advice from and consult with other relevant officers of the United States; and

   Inserted: (3) afford other interested parties an opportunity to present relevant information and advice.

   Inserted: (c) Consultation With Congress.--The President shall consult with the appropriate congressional committees--

   Inserted: (1) before exercising any authority under subsection (a); and

   Inserted: (2) not less frequently than once every 180 days for the duration of the exercise of such authority.

   Inserted: (d) Notice.--Not later than 30 days after the date that the President determines that a foreign trading partner is subject to economic coercion or exercises any authority under subsection (a), the President shall publish in the Federal Register--

   Inserted: (1) a notice of the determination or exercise of authority; and

   Inserted: (2) a description of the circumstances that led to such determination or exercise of authority.

   Inserted: (e) Revocation of Determination.--

   Inserted: (1) In general.--Any determination made by the President under subsection (a) shall be revoked on the earliest of--

   Inserted: (A) the date that is 2 years after the date of such determination;

   Inserted: (B) the date of the enactment of a joint resolution revoking the determination; or

   Inserted: (C) the date on which the President issues a proclamation revoking the determination.

   Inserted: (2) Termination of authorities.--Any authority described in section 1285(a) exercised pursuant to a determination that has been revoked under paragraph (1) shall cease to be exercised on the date of such revocation, except that such revocation shall not affect--

   Inserted: (A) any action taken or proceeding pending not finally concluded or determined on such date; or

   Inserted: (B) any rights or duties that matured or penalties that were incurred prior to such date.

   Inserted: SEC. 1285. AUTHORITIES TO ASSIST FOREIGN TRADING PARTNERS AFFECTED BY ECONOMIC COERCION.

   Inserted: (a) Authorities With Respect to Foreign Trading Partners.--The authorities described in this subsection are the following:

   Inserted: (1) Subject to section 1286, with respect to goods imported into the United States from a foreign trading partner subject to economic coercion by a foreign adversary--

   Inserted: (A) the reduction or elimination of duties; or

   Inserted: (B) the modification of tariff-rate quotas.

   Inserted: (2) Requesting appropriations for foreign aid to the foreign trading partner.

   Inserted: (3) Expedited decisions with respect to the issuance of licenses for the export or reexport to, or in-country transfer in, the foreign trading partner of items subject to controls under the Export Administration Regulations, consistent with the Export Control Reform Act of 2018 (50 U.S.C. 4801 et seq.).

   Inserted: (4) Expedited regulatory processes related to the importation of goods and services into the United States from the foreign trading partner.

   Inserted: (5) Requesting the necessary authority and appropriations for sovereign loan guarantees to the foreign trading partner.

   Inserted: (6) The waiver of policy requirements (other than policy requirements mandated by an Act of Congress) as necessary to facilitate the provision of financing to support exports to the foreign trading partner.

   Inserted: (7) Requesting appropriations for loan loss reserves to facilitate the provision of financing to support United States exports to the foreign trading partner.

   Inserted: (8) The exemption of financing provided to support United States exports to the foreign trading partner from section 8(g)(1) of the Export-Import Bank Act of 1945 (12 U.S.C. 635g(g)(1)).

   Inserted: (b) Authorities With Respect to Foreign Adversaries.--With respect to goods imported into the United States from a foreign adversary engaged in economic coercion of a foreign trading partner, the authorities described in this subsection are the following:

   Inserted: (1) The increase in duties.

   Inserted: (2) The modification of tariff-rate quotas.

   Inserted: (c) Coordination With Allies.--To broaden economic support for a foreign trading partner, the President shall endeavor to coordinate the exercise of the authorities described in subsection (a) with other foreign trading partners.

   Inserted: SEC. 1286. CONDITIONS WITH RESPECT TO TARIFF AUTHORITY.

   Inserted: (a) Limitations on Tariff Authority.--The authority described in section 1285(a)(1)--

   Inserted: (1) does not include the authority to reduce or eliminate antidumping or countervailing duties imposed under title VII of the Tariff Act of 1930 (19 U.S.C. 1671 et seq.);

   Inserted: (2) may only apply to an article if--

   Inserted: (A) such article is--

   Inserted: (i) designated by the President as an eligible article for purposes of the Generalized System of Preferences under section 503 of the Trade Act of 1974 (19 U.S.C. 2463); and

   Inserted: (ii) imported directly from the foreign trading partner into the customs territory of the United States; and

   Inserted: (B) the sum of the cost or value of the materials produced in the foreign trading partner and the direct costs of processing operations performed in such foreign trading partner is not less than 35 percent of the appraised value of such article at the time it is entered;

   Inserted: (3) may not apply to any article that is the product of the foreign trading partner by virtue of having merely undergone--

   Inserted: (A) simple combining or packaging operations; or

   Inserted: (B) mere dilution with water or another substance that does not materially alter the characteristics of the article; and

   Inserted: (4) may not be applied in a manner that would provide indirect economic benefit to a foreign adversary.

   Inserted: (b) Consultation With Congress.--

   Inserted: (1) In general.--Before exercising any authority described in section 1285(a)(1) or 1285(b), the President shall submit to Congress a notice of intent to exercise such authority that includes a description of--

   Inserted: (A) the circumstances that merit the exercise of such authority;

   Inserted: (B) the expected effects of the exercise of such authority on the economy of the United States and businesses, workers, farmers, and ranchers in the United States;

   Inserted: (C) the expected effects of the exercise of such authority on the foreign trading partner; and

   Inserted: (D) the expected effects of the exercise of such authority on the foreign adversary.

   Inserted: (2) Congressional review.--During the period of 45 calendar days beginning on the date on which the President submits a notice of intent under paragraph (1), the appropriate congressional committees should hold hearings and briefings and otherwise obtain information in order to fully review the proposed exercise of authority.

   Inserted: (3) Joint resolution required.--Notwithstanding any other provision of law, during the period for congressional review described in paragraph (2), the President may not take the proposed exercise of authority unless a joint resolution of approval with respect to that exercise of authority is enacted.

   Original wording

   At end of title XII, add the following:

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As printed