II 109th CONGRESS 2d Session S. 3622 IN THE SENATE OF THE UNITED STATES June 29, 2006 Mr. Cornyn (for himself and Mr. Coleman) introduced the following bill; which was read twice and referred to the Committee on Foreign Relations A BILL To authorize the President to negotiate the creation of a North American Investment Fund between the Governments of Canada, of Mexico, and of the United States to increase the economic competitiveness of North America in a global economy.

1.

Short title

This Act may be cited as the North American Investment Fund Act.

2.

Establishment of the North American investment fund

The President is authorized to negotiate with the Government of Canada and the Government of Mexico to establish a North American Investment Fund (referred to in this Act as the Fund) by— (1)agreeing to certain amendments to the November 1993 Agreement Between the Government of the United States of America and the Government of the United Mexican States Concerning the Establishment of a Border Environment Cooperation Commission and a North American Development Bank; or (2)negotiating an agreement with the Government of Canada and the Government of Mexico to establish and administer the Fund.

3.

Purposes

The purposes of the Fund shall be— (1)to increase the economic competitiveness of North America in a global economy; (2)to reduce the income gap between Mexico and Canada, and between Mexico and the United States; and (3)to promote economic development in Mexico in the areas of infrastructure, education, technology, and job training.

4.

Projects funded

(a)

In general

Grants shall be awarded from the Fund for projects to carry out the purposes described in section 3, including projects— (1)to construct roads in Mexico to facilitate trade between Mexico and Canada, and Mexico and the United States; (2)to encourage the development and improve the quality of primary, secondary, and post-secondary education throughout Mexico; (3)to expand the deployment of communications and broadband infrastructure throughout Mexico, with emphasis on rural and underserved areas; and (4)to expand job training and workforce development for high-growth industries in Mexico. (b)

Project selection

(1)

In general

The agreement described in section 2 shall include guidelines for determining which projects will receive financial assistance from the Fund. (2)

Priority

In selecting grantees to carry out projects described in subsection (a)(1), priority should be given to projects in the interior and southern regions of Mexico that connect to more developed markets in the United States and Canada.

5.

Contributions to the Fund

(a)

In general

The agreement described in section 2 shall require the Governments of Canada, of Mexico, and of the United States to contribute to the Fund, subject to the limitations under subsection (b). (b)

Limitations on contributions by the United States and Canada

The agreement described in section 2 shall include provisions that permit Canada and the United States to contribute to the Fund if the Government of Mexico— (1)increases the tax revenue collected by such Government, with the goal of annually collecting an amount of such revenue that is equal to 18 percent of the annual gross domestic product of Mexico; and (2)carries out a program of reforms to increase private investment and economic growth, reduce poverty, and maintain economic stability in Mexico.

6.

Term of the Fund

The agreement described in section 2 shall require that the Fund— (1)operate for an initial period of 10 years; and (2)cease operations at the end of such 10-year period, unless the Governments of Canada, of Mexico, and of the United States agree to extend the period of operation beyond such initial period.

7.

Report

Not later than 180 days after the date on which the Government of Mexico complies with the criteria described in paragraphs (1) and (2) of section 5(b), and once every 180 days after such date of compliance and before the finalization of the agreement described in section 2, the President shall submit a report to Congress detailing the progress made by the Government of the United States to establish the Fund in accordance with this Act.