[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[S. 1114 Introduced in Senate (IS)]

113th CONGRESS
  1st Session
                                S. 1114

To provide for identification of misaligned currency, require action to 
           correct the misalignment, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                              June 7, 2013

  Mr. Brown (for himself, Mr. Sessions, Mr. Schumer, Mr. Graham, Ms. 
    Stabenow, Mr. Burr, Ms. Collins, and Mr. Casey) introduced the 
 following bill; which was read twice and referred to the Committee on 
                  Banking, Housing, and Urban Affairs

_______________________________________________________________________

                                 A BILL


 
To provide for identification of misaligned currency, require action to 
           correct the misalignment, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Currency Exchange Rate Oversight 
Reform Act of 2013''.

SEC. 2. DEFINITIONS.

    In this Act:
            (1) Administering authority.--The term ``administering 
        authority'' means the authority referred to in section 771(1) 
        of the Tariff Act of 1930 (19 U.S.C. 1677(1)).
            (2) Agreement on government procurement.--The term 
        ``Agreement on Government Procurement'' means the agreement 
        referred to in section 101(d)(17) of the Uruguay Round 
        Agreements Act (19 U.S.C. 3511(d)(17)).
            (3) Country.--The term ``country'' means a foreign country, 
        dependent territory, or possession of a foreign country, and 
        may include an association of 2 or more foreign countries, 
        dependent territories, or possessions of countries into a 
        customs union outside the United States.
            (4) Exporting country.--The term ``exporting country'' 
        means the country in which the subject merchandise is produced 
        or manufactured.
            (5) Fundamental misalignment.--The term ``fundamental 
        misalignment'' means a significant and sustained undervaluation 
        of the prevailing real effective exchange rate, adjusted for 
        cyclical and transitory factors, from its medium-term 
        equilibrium level.
            (6) Fundamentally misaligned currency.--The term 
        ``fundamentally misaligned currency'' means a foreign currency 
        that is in fundamental misalignment.
            (7) Real effective exchange rate.--The term ``real 
        effective exchange rate'' means a weighted average of bilateral 
        exchange rates, expressed in price-adjusted terms.
            (8) Secretary.--The term ``Secretary'' means the Secretary 
        of the Treasury.
            (9) Sterilization.--The term ``sterilization'' means 
        domestic monetary operations taken to neutralize the monetary 
        impact of increases in reserves associated with intervention in 
        the currency exchange market.
            (10) Subject merchandise.--The term ``subject merchandise'' 
        means the merchandise subject to an antidumping investigation, 
        review, suspension agreement, or order referred to in section 
        771(25) of the Tariff Act of 1930 (19 U.S.C. 1677(25)).
            (11) WTO agreement.--The term ``WTO Agreement'' means the 
        agreement referred to in section 2(9) of the Uruguay Round 
        Agreements Act (19 U.S.C. 3501(9)).

SEC. 3. REPORT ON INTERNATIONAL MONETARY POLICY AND CURRENCY EXCHANGE 
              RATES.

    (a) Reports Required.--
            (1) In general.--Not later than March 15 and September 15 
        of each calendar year, the Secretary, after consulting with the 
        Chairman of the Board of Governors of the Federal Reserve 
        System and the Advisory Committee on International Exchange 
        Rate Policy, shall submit to Congress and make public, a 
        written report on international monetary policy and currency 
        exchange rates.
            (2) Consultations.--On or before March 30 and September 30 
        of each calendar year, the Secretary shall appear, if 
        requested, before the Committee on Banking, Housing, and Urban 
        Affairs and the Committee on Finance of the Senate and the 
        Committee on Financial Services and the Committee on Ways and 
        Means of the House of Representatives to provide testimony on 
        the reports submitted pursuant to paragraph (1).
    (b) Content of Reports.--Each report submitted under subsection (a) 
shall contain the following:
            (1) An analysis of currency market developments and the 
        relationship between the United States dollar and the 
        currencies of major economies and trading partners of the 
        United States.
            (2) A review of the economic and monetary policies of major 
        economies and trading partners of the United States, and an 
        evaluation of how such policies impact currency exchange rates.
            (3) A description of any currency intervention by the 
        United States or other major economies or trading partners of 
        the United States, or other actions undertaken to adjust the 
        actual exchange rate relative to the United States dollar.
            (4) An evaluation of the domestic and global factors that 
        underlie the conditions in the currency markets, including--
                    (A) monetary and financial conditions;
                    (B) accumulation of foreign assets;
                    (C) macroeconomic trends;
                    (D) trends in current and financial account 
                balances;
                    (E) the size, composition, and growth of 
                international capital flows;
                    (F) the impact of the external sector on economic 
                growth;
                    (G) the size and growth of external indebtedness;
                    (H) trends in the net level of international 
                investment; and
                    (I) capital controls, trade, and exchange 
                restrictions.
            (5) A list of currencies designated as fundamentally 
        misaligned currencies pursuant to section 4(a)(2), and a 
        description of any economic models or methodologies used to 
        establish the list.
            (6) A list of currencies designated for priority action 
        pursuant to section 4(a)(3).
            (7) An identification of the nominal value associated with 
        the medium-term equilibrium exchange rate, relative to the 
        United States dollar, for each currency listed under paragraph 
        (6).
            (8) A description of any consultations conducted or other 
        steps taken pursuant to section 5, 6, or 7, including any 
        actions taken to eliminate the fundamental misalignment.
            (9) A description of any determination made pursuant to 
        section 9(a).
    (c) Consultations.--
            (1) In general.--The Secretary shall consult with the 
        Chairman of the Board of Governors of the Federal Reserve 
        System and the Advisory Committee on International Exchange 
        Rate Policy with respect to the preparation of each report 
        required under subsection (a).
            (2) Comments.--Not later than the date that is 15 days 
        before the date each report is due under subsection (a), the 
        Chairman of the Board of Governors of the Federal Reserve 
        System and the Advisory Committee on International Exchange 
        Rate Policy shall submit to the Secretary any comments of the 
        Chairman or Advisory Committee on the report.
            (3) Consideration.--The Secretary shall review and consider 
        all comments received from the Chairman and the Advisory 
        Committee under paragraph (2) before submitting the report 
        required under subsection (a).

SEC. 4. IDENTIFICATION OF FUNDAMENTALLY MISALIGNED CURRENCIES.

    (a) Identification.--
            (1) In general.--The Secretary shall analyze on a 
        semiannual basis the prevailing real effective exchange rates 
        of foreign currencies.
            (2) Designation of fundamentally misaligned currencies.--
        With respect to the currencies of countries that have 
        significant bilateral trade flows with the United States, and 
        currencies that are otherwise significant to the operation, 
        stability, or orderly development of regional or global capital 
        markets, the Secretary shall determine whether any such 
        currency is in fundamental misalignment and shall designate 
        such currency as a fundamentally misaligned currency.
            (3) Designation of currencies for priority action.--The 
        Secretary shall designate a currency identified under paragraph 
        (2) for priority action if the country that issues such 
        currency is--
                    (A) engaging in protracted large-scale intervention 
                in the currency exchange market, particularly if 
                accompanied by partial or full sterilization;
                    (B) engaging in excessive and prolonged official or 
                quasi-official accumulation of foreign exchange 
                reserves and other foreign assets, for balance of 
                payments purposes;
                    (C) introducing or substantially modifying for 
                balance of payments purposes a restriction on, or 
                incentive for, the inflow or outflow of capital, that 
                is inconsistent with the goal of achieving full 
                currency convertibility; or
                    (D) pursuing any other policy or action that, in 
                the view of the Secretary, warrants designation for 
                priority action.
    (b) Reports.--The Secretary shall include a list of any foreign 
currency designated under paragraph (2) or (3) of subsection (a) and 
the data and reasoning underlying such designations in each report 
required by section 3.

SEC. 5. NEGOTIATIONS AND CONSULTATIONS.

    (a) In General.--Upon designation of a currency pursuant to section 
4(a)(2), the Secretary shall seek to consult bilaterally with the 
country that issues such currency in order to facilitate the adoption 
of appropriate policies to address the fundamental misalignment.
    (b) Consultations Involving Currencies Designated for Priority 
Action.--With respect to each currency designated for priority action 
pursuant to section 4(a)(3), the Secretary shall, in addition to 
seeking to consult with a country pursuant to subsection (a)--
            (1) seek the advice of the International Monetary Fund with 
        respect to the findings of the Secretary in the report 
        submitted to Congress pursuant to section 3(a); and
            (2) encourage other governments, whether bilaterally or in 
        appropriate multinational fora, to join the United States in 
        seeking the adoption of appropriate policies by the country 
        described in subsection (a) to eliminate the fundamental 
        misalignment.

SEC. 6. FAILURE TO ADOPT APPROPRIATE POLICIES.

    (a) Determination and Measures Required.--
            (1) Determination.--Not later than 90 days after the date 
        on which a currency is designated for priority action pursuant 
        to section 4(a)(3), the Secretary shall determine whether the 
        country that issues the currency has adopted appropriate 
        policies, and taken identifiable action, to eliminate the 
        fundamental misalignment.
            (2) Notification and publication.--The Secretary shall 
        promptly notify Congress of the determination under paragraph 
        (1) and publish notice of the determination in the Federal 
        Register.
            (3) Measures.--If the Secretary determines that the country 
        that issues the currency described in paragraph (1) has failed 
        to adopt appropriate policies, or take identifiable action, to 
        eliminate the fundamental misalignment, the measures specified 
        in subsection (b) shall apply with respect to the country until 
        a notification described in section 7(b) is published in the 
        Federal Register.
    (b) Measures Specified.--The measures specified in this subsection 
are, with respect to a country, the following:
            (1) Adjustment under antidumping law.--For purposes of an 
        antidumping investigation under subtitle B of title VII of the 
        Tariff Act of 1930 (19 U.S.C. 1673 et seq.) or a review under 
        subtitle C of such Act (19 U.S.C. 1675 et seq.), the following 
        shall apply:
                    (A) In general.--The administering authority shall 
                ensure a fair comparison between the export price and 
                the normal value by adjusting the price used to 
                establish export price or constructed export price to 
                reflect the fundamental misalignment of the currency of 
                the country.
                    (B) Sales subject to adjustment.--The adjustment 
                described in subparagraph (A) shall apply with respect 
                to subject merchandise sold on or after the date that 
                is 30 days after the date the currency of the country 
                is designated for priority action pursuant to section 
                4(a)(3).
            (2) Federal procurement.--
                    (A) In general.--The President shall prohibit the 
                procurement by the Federal Government of products or 
                services from the country.
                    (B) Exception.--The prohibition provided for in 
                subparagraph (A) shall not apply with respect to a 
                country that is a party to the Agreement on Government 
                Procurement.
            (3) Request for imf action.--The United States shall inform 
        the Managing Director of the International Monetary Fund of the 
        failure of the country to adopt appropriate policies, or to 
        take identifiable action, to eliminate the fundamental 
        misalignment, and the actions the country is engaging in that 
        are identified in section 4(a)(3), and shall request that the 
        Managing Director of the International Monetary Fund--
                    (A) consult with the country regarding the 
                observance of the obligations of the country under 
                article IV of the International Monetary Fund Articles 
                of Agreement, including through special consultations, 
                if necessary; and
                    (B) not later than 180 days after the date of the 
                request, formally report the results of such 
                consultations to the Executive Board of the 
                International Monetary Fund.
            (4) OPIC financing.--The Overseas Private Investment 
        Corporation shall not approve any new financing (including 
        insurance, reinsurance, or guarantee) with respect to a project 
        located within the country.
            (5) Multilateral bank financing.--
                    (A) In general.--The Secretary shall instruct the 
                United States Executive Director at each multilateral 
                bank to oppose the approval of any new financing 
                (including loans, other credits, insurance, 
                reinsurance, or guarantee) to the government of the 
                country or for a project located within the country.
                    (B) Multilateral bank.--The term ``multilateral 
                bank'' includes each of the international financial 
                institutions described in section 1701(c)(2) of the 
                International Financial Institutions Act (22 U.S.C. 
                262r).
    (c) Waiver.--
            (1) In general.--The President may waive any action 
        provided for under subsection (a) or (b) if the President 
        determines that--
                    (A) taking the action would cause serious harm to 
                the national security of the United States; or
                    (B) it is in the vital economic interest of the 
                United States to do so and taking the action would have 
                an adverse impact on the United States economy greater 
                than the benefits of the action.
            (2) Notification.--The President shall promptly notify 
        Congress of a determination under paragraph (1) (and the 
        reasons for the determination, if made under paragraph (1)(B)) 
        and shall publish notice of the determination (and the reasons 
        for the determination, if made under paragraph (1)(B)) in the 
        Federal Register.
    (d) Reports.--The Secretary shall describe any action or 
determination pursuant to subsection (a), (b), or (c) in the first 
semiannual report required by section 3 after the date of the action or 
determination.

SEC. 7. PERSISTENT FAILURE TO ADOPT APPROPRIATE POLICIES.

    (a) Determination and Measures Required.--
            (1) Determination.--Not later than 360 days after the date 
        on which a currency is designated for priority action pursuant 
        to section 4(a)(3), the Secretary shall determine whether the 
        country that issues the currency has adopted appropriate 
        policies, and taken identifiable action, to eliminate the 
        fundamental misalignment.
            (2) Notification and publication.--The Secretary shall 
        promptly notify Congress of the determination under paragraph 
        (1) and shall publish notice of the determination in the 
        Federal Register.
            (3) Measures.--If the Secretary determines that the country 
        that issues the currency has failed to adopt appropriate 
        policies, or take identifiable action, to eliminate the 
        fundamental misalignment, in addition to the measures specified 
        in section 6(b), the following measures shall apply with 
        respect to the country until a notification described in 
        subsection (b) is published in the Federal Register:
                    (A) Action at the wto.--The United States Trade 
                Representative shall request consultations in the World 
                Trade Organization with the country regarding the 
                consistency of the actions of the country with its 
                obligations under the WTO Agreement.
                    (B) Remedial intervention.--
                            (i) In general.--The Secretary shall 
                        consult with the Board of Governors of the 
                        Federal Reserve System to consider undertaking 
                        remedial intervention in international currency 
                        markets in response to the fundamental 
                        misalignment of the currency designated for 
                        priority action, and coordinating the 
                        intervention with other monetary authorities 
                        and the International Monetary Fund. In doing 
                        so, the Secretary shall consider the impact of 
                        the intervention on domestic economic growth 
                        and stability, including the impact on interest 
                        rates.
                            (ii) Notice to country.--At the same time 
                        the Secretary takes action under clause (i), 
                        the Secretary shall notify the country that 
                        issues the currency of the consultations under 
                        clause (i).
    (b) Notification.--The Secretary shall promptly notify Congress 
when a country that issues a currency designated for priority action 
pursuant to section 4(a)(3) adopts appropriate policies, or takes 
identifiable action, to eliminate the fundamental misalignment, and 
publish notice of the action of that country in the Federal Register.
    (c) Waiver.--
            (1) In general.--The President may waive any action 
        provided for under this section, or extend any waiver provided 
        for under section 6(c), if the President determines that--
                    (A) taking the action would cause serious harm to 
                the national security of the United States; or
                    (B) it is in the vital economic interest of the 
                United States to do so, and that taking the action 
                would have an adverse impact on the United States 
                economy substantially out of proportion to the benefits 
                of the action.
            (2) Notification.--The President shall promptly notify 
        Congress of a determination under paragraph (1) (and the 
        reasons for the determination, if made under paragraph (1)(B)) 
        and shall publish notice of the determination (and the reasons 
        for the determination, if made under paragraph (1)(B)) in the 
        Federal Register.
    (d) Disapproval of Waiver.--If the President waives an action 
pursuant to subsection (c)(1)(B), or extends a waiver provided for 
under section 6(c)(1)(B), the waiver shall cease to have effect upon 
the enactment of a resolution of disapproval described in section 
8(a)(2).
    (e) Reports.--The Secretary shall describe any action or 
determination pursuant to subsection (a), (b), or (c) in the first 
semiannual report required by section 3 after the date of such action 
or determination.

SEC. 8. CONGRESSIONAL DISAPPROVAL OF WAIVER.

    (a) Resolution of Disapproval.--
            (1) Introduction.--If a resolution of disapproval is 
        introduced in the House of Representatives or the Senate during 
        the 90-day period (not counting any day which is excluded under 
        section 154(b)(1) of the Trade Act of 1974 (19 U.S.C. 
        2194(b)(1))), beginning on the date on which the President 
        first notifies Congress of a determination to waive action with 
        respect to a country pursuant to section 7(c)(1)(B), that 
        resolution of disapproval shall be considered in accordance 
        with this subsection.
            (2) Resolution of disapproval.--In this subsection, the 
        term ``resolution of disapproval'' means only a joint 
        resolution of the two Houses of the Congress, the sole matter 
        after the resolving clause of which is as follows: ``That 
        Congress does not approve the determination of the President 
        under ___________ of the Currency Exchange Rate Oversight 
        Reform Act of 2013 with respect to ______, of which Congress 
        was notified on _____.'', with the first blank space being 
        filled section 7(c)(1)(B) or section 6(c)(1)(B), whichever is 
        applicable, the second blank space being filled with the name 
        of the appropriate country, and the third blank space being 
        filled with the appropriate date.
            (3) Procedures for considering resolutions.--
                    (A) Introduction and referral.--Resolutions of 
                disapproval--
                            (i) in the House of Representatives--
                                    (I) may be introduced by any Member 
                                of the House of Representatives;
                                    (II) shall be referred to the 
                                Committee on Financial Services and to 
                                the Committee on Rules; and
                                    (III) may not be amended by either 
                                Committee; and
                            (ii) in the Senate--
                                    (I) may be introduced by any Member 
                                of the Senate;
                                    (II) shall be referred to the 
                                Committee on Banking, Housing, and 
                                Urban Affairs; and
                                    (III) may not be amended.
                    (B) Committee discharge and floor consideration.--
                The provisions of subsections (c) through (f) of 
                section 152 of the Trade Act of 1974 (other than 
                paragraph (3) of subsection (f)) (19 U.S.C. 2192 (c) 
                through (f)) (relating to committee discharge and floor 
                consideration of certain resolutions in the House and 
                Senate) apply to a resolution of disapproval under this 
                section to the same extent those subsections apply to 
                joint resolutions under such section 152.
    (b) Rules of House of Representatives and Senate.--This section is 
enacted by Congress--
            (1) as an exercise of the rulemaking power of the House of 
        Representatives and the Senate, respectively, and as such is 
        deemed a part of the rules of each House, respectively, and the 
        rules provided for in this section supersede other rules only 
        to the extent that they are inconsistent with those other 
        rules; and
            (2) with the full recognition of the constitutional right 
        of either House to change the rules provided for in this 
        section (so far as relating to the procedures of that House) at 
        any time, in the same manner, and to the same extent as any 
        other rule of that House.

SEC. 9. INTERNATIONAL FINANCIAL INSTITUTION GOVERNANCE ARRANGEMENTS.

    (a) Initial Review.--
            (1) In general.--Notwithstanding any other provision of 
        law, before the United States approves a proposed change in the 
        governance arrangement of any international financial 
        institution, as defined in section 1701(c)(2) of the 
        International Financial Institutions Act (22 U.S.C. 
        262r(c)(2)), the Secretary shall determine whether any member 
        of the international financial institution that would benefit 
        from the proposed change, in the form of increased voting 
        shares or representation, has a currency that was designated a 
        currency for priority action pursuant to section 4(a)(3) in the 
        most recent report required by section 3.
            (2) Report.--The Secretary shall submit to Congress the 
        determination required by paragraph (1).
    (b) Subsequent Action.--The United States shall oppose any proposed 
change in the governance arrangement of the international financial 
institution if the Secretary renders an affirmative determination 
pursuant to subsection (a).
    (c) Further Action.--The United States shall continue to oppose any 
proposed change in the governance arrangement of the international 
financial institution, pursuant to subsection (b), until the Secretary 
determines and reports to Congress that the proposed change would not 
benefit any member of the international financial institution, in the 
form of increased voting shares or representation, that has a currency 
that is designated a currency for priority action pursuant to section 
4(a)(3).

SEC. 10. ADJUSTMENT FOR FUNDAMENTALLY MISALIGNED CURRENCY DESIGNATED 
              FOR PRIORITY ACTION.

    (a) In General.--Subsection (c)(2) of section 772 of the Tariff Act 
of 1930 (19 U.S.C. 1677a(c)(2)) is amended--
            (1) in subparagraph (A), by striking ``and'' at the end;
            (2) in subparagraph (B), by striking the period at the end 
        and inserting ``, and''; and
            (3) by adding at the end the following:
                    ``(C) if required by section 6(b)(1) of the 
                Currency Exchange Rate Oversight Reform Act of 2013, 
                the percentage by which the domestic currency of the 
                producer or exporter is undervalued in relation to the 
                United States dollar as determined under section 
                771(37).''.
    (b) Calculation Methodology.--Section 771 of the Tariff Act of 1930 
(19 U.S.C. 1677) is amended by adding at the end the following:
            ``(37) Percentage undervaluation.--The administering 
        authority shall determine the percentage by which the domestic 
        currency of the producer or exporter is undervalued in relation 
        to the United States dollar by comparing the nominal value 
        associated with the medium-term equilibrium exchange rate of 
        the domestic currency of the producer or exporter, identified 
        by the Secretary pursuant to section 3(b)(7) of the Currency 
        Exchange Rate Oversight Reform Act of 2013, to the official 
        daily exchange rate identified by the administering 
        authority.''.

SEC. 11. CURRENCY UNDERVALUATION UNDER COUNTERVAILING DUTY LAW.

    (a) Investigation or Review.--Subsection (c) of section 702 of the 
Tariff Act of 1930 (19 U.S.C. 1671a(c)) is amended by adding at the end 
the following:
            ``(6) Currency undervaluation.--For purposes of a 
        countervailing duty investigation under this subtitle where the 
        determinations under clauses (i) and (ii) of paragraph (1)(A) 
        are affirmative, or a review under subtitle C of this title, 
        the following shall apply:
                    ``(A) In general.--The administering authority 
                shall initiate an investigation to determine whether 
                currency undervaluation by the government of a country 
                or any public entity within the territory of a country 
                is providing, directly or indirectly, a countervailable 
                subsidy as described in section 771(5), if--
                            ``(i) a petition filed by an interested 
                        party (described in subparagraph (C), (D), (E), 
                        (F), or (G) of section 771(9)) alleges the 
                        elements necessary for the imposition of the 
                        duty imposed by section 701(a); and
                            ``(ii) the petition is accompanied by 
                        information reasonably available to the 
                        petitioner supporting those allegations.
                    ``(B) Designation of fundamentally misaligned 
                currency for priority action.--Upon designation of a 
                currency as a fundamentally misaligned currency for 
                priority action pursuant to section 4(a)(3) of the 
                Currency Exchange Rate Oversight Reform Act of 2013, 
                the administering authority shall initiate an 
                investigation to determine whether the country that 
                issues such currency is providing, directly or 
                indirectly, a countervailable subsidy as defined in 
                section 771(5), if--
                            ``(i) a petition filed by an interested 
                        party (described in subparagraph (C), (D), (E), 
                        (F), or (G) of section 771(9)) alleges the 
                        elements necessary for the imposition of the 
                        duty imposed by section 701(a); and
                            ``(ii) the petition is accompanied by 
                        information reasonably available to the 
                        petitioner supporting those allegations.''.
    (b) Benefit Calculation Methodology.--Section 771 of the Tariff Act 
of 1930 (19 U.S.C. 1677), as amended by section 10(b), is further 
amended by adding at the end the following:
            ``(38) Currency undervaluation benefit.--For purposes of a 
        countervailing duty investigation under subtitle A of this 
        title, or a review under subtitle C of this title, the 
        following shall apply:
                    ``(A) In general.--If the administering authority 
                determines to investigate whether currency 
                undervaluation is a countervailable subsidy as defined 
                in section 771(5), the administering authority shall 
                determine whether there is a benefit to the recipient 
                and measure such benefit by comparing the simple 
                average of the real exchange rates derived from 
                application of the macroeconomic-balance approach and 
                the equilibrium-real-exchange-rate approach to the 
                official daily exchange rate identified by the 
                administering authority.
                    ``(B) Reliance on data.--In making the 
                determination under subparagraph (A), the administering 
                authority shall rely upon data that are publicly 
                available, reliable, and compiled and maintained by the 
                International Monetary Fund or the World Bank, or other 
                international organizations or national governments if 
                data from the International Monetary Fund or World Bank 
                are not available.
                    ``(C) Designation of fundamentally misaligned 
                currency for priority action.--In the case of 
                designation of a currency as a fundamentally misaligned 
                currency for priority action pursuant to section 
                4(a)(3) of the Currency Exchange Rate Oversight Reform 
                Act of 2013, the administering authority shall 
                determine whether there is a benefit to the recipient 
                and measure that benefit by comparing the nominal value 
                associated with the medium-term equilibrium exchange 
                rate of the currency of the exporting country, 
                identified by the Secretary pursuant to section 3(b)(7) 
                of such Act, to the official daily exchange rate 
                identified by the administering authority.
                    ``(D) Definitions.--In this paragraph:
                            ``(i) Macroeconomic-balance approach.--The 
                        term `macroeconomic-balance approach' means a 
                        methodology under which the level of 
                        undervaluation of the real effective exchange 
                        rate of the currency of the exporting country 
                        is defined as the change in the real effective 
                        exchange rate needed to achieve equilibrium in 
                        the balance of payments of the exporting 
                        country, as such methodology is described in 
                        the guidelines of the International Monetary 
                        Fund's Consultative Group on Exchange Rate 
                        Issues, if available.
                            ``(ii) Equilibrium-real-exchange-rate 
                        approach.--The term `equilibrium-real-exchange-
                        rate approach' means a methodology under which 
                        the level of undervaluation of the real 
                        effective exchange rate of the currency of the 
                        exporting country is defined as the difference 
                        between the observed real effective exchange 
                        rate and the real effective exchange rate, as 
                        such methodology is described in the guidelines 
                        of the International Monetary Fund's 
                        Consultative Group on Exchange Rate Issues, if 
                        available.
                            ``(iii) Real exchange rates.--The term 
                        `real exchange rates' means the bilateral 
                        exchange rates derived from converting the 
                        trade-weighted multilateral exchange rates 
                        yielded by the macroeconomic-balance approach 
                        and the equilibrium-real-exchange-rate approach 
                        into real bilateral terms.''.
    (c) Export Subsidy.--Section 771(5A)(B) of the Tariff Act of 1930 
(19 U.S.C. 1677(5A)(B)) is amended by adding at the end the following 
new sentence: ``The fact that a subsidy may also be provided in 
circumstances that do not involve export shall not, for that reason 
alone, mean that the subsidy cannot be considered contingent upon 
export performance.''.
    (d) Effective Date.--The amendments made by this section apply to 
countervailing duty investigations initiated under subtitle A of title 
VII of the Tariff Act of 1930 (19 U.S.C. 1671 et seq.) and reviews 
initiated under subtitle C of title VII of such Act (19 U.S.C. 1675 et 
seq.)--
            (1) before the date of the enactment of this Act, if the 
        investigation or review is pending a final determination as of 
        such date of enactment; and
            (2) on or after such date of enactment.

SEC. 12. NONMARKET ECONOMY STATUS.

    Paragraph (18)(B) of section 771 of the Tariff Act of 1930 (19 
U.S.C. 1677(18)(B)) is amended--
            (1) in clause (v), by striking ``and'' at the end;
            (2) by redesignating clause (vi) as clause (vii); and
            (3) by inserting after clause (v) the following:
                            ``(vi) whether the currency of the foreign 
                        country is designated, or has been designated 
                        at any time over the 5 years prior to review of 
                        nonmarket economy status, a currency for 
                        priority action pursuant to section 4(a)(3) of 
                        the Currency Exchange Rate Oversight Reform Act 
                        of 2013, and''.

SEC. 13. APPLICATION TO CANADA AND MEXICO.

    Pursuant to article 1902 of the North American Free Trade Agreement 
and section 408 of the North American Free Trade Agreement 
Implementation Act (19 U.S.C. 3438), section 6(b)(1) and the amendments 
made by sections 10, 11, and 12 shall apply with respect to goods from 
Canada and Mexico.

SEC. 14. ADVISORY COMMITTEE ON INTERNATIONAL EXCHANGE RATE POLICY.

    (a) Establishment.--
            (1) In general.--There is established an Advisory Committee 
        on International Exchange Rate Policy (in this section referred 
        to as the ``Committee'') that shall be responsible for--
                    (A) advising the Secretary in the preparation of 
                each report to Congress on international monetary 
                policy and currency exchange rates, provided for in 
                section 3; and
                    (B) advising Congress and the President with 
                respect to--
                            (i) international exchange rates and 
                        financial policies; and
                            (ii) the impact of such policies on the 
                        economy of the United States.
            (2) Membership.--
                    (A) In general.--The Committee shall be composed of 
                9 members as follows, none of whom shall be employees 
                of the Federal Government:
                            (i) Congressional appointees.--
                                    (I) Senate appointees.--Four 
                                members shall be appointed by the 
                                President pro tempore of the Senate, 
                                upon the recommendation of the chairmen 
                                and ranking members of the Committee on 
                                Banking, Housing, and Urban Affairs and 
                                the Committee on Finance of the Senate.
                                    (II) House appointees.--Four 
                                members shall be appointed by the 
                                Speaker of the House of Representatives 
                                upon the recommendation of the chairmen 
                                and ranking members of the Committee on 
                                Financial Services and the Committee on 
                                Ways and Means of the House of 
                                Representatives.
                            (ii) Presidential appointee.--One member 
                        shall be appointed by the President.
                    (B) Qualifications.--Members shall be selected 
                under subparagraph (A) on the basis of their 
                objectivity and demonstrated expertise in finance, 
                economics, or currency exchange.
            (3) Terms.--
                    (A) In general.--Members shall be appointed for a 
                term of 4 years or until the Committee terminates.
                    (B) Reappointment.--An individual may be 
                reappointed to the Committee for additional terms.
            (4) Vacancies.--Any vacancy in the Committee shall not 
        affect its powers, but shall be filled in the same manner as 
        the original appointment.
    (b) Duration of Committee.--
            (1) In general.--Notwithstanding section 14(c) of the 
        Federal Advisory Committee Act (5 U.S.C. App.), the Committee 
        shall terminate on the date that is 4 years after the date of 
        the enactment of this Act unless renewed by the President 
        pursuant to section 14 of the Federal Advisory Committee Act (5 
        U.S.C. App.) for a subsequent 4-year period.
            (2) Subsequent renewals.--The President may continue to 
        renew the Committee for successive 4-year periods by taking 
        appropriate action prior to the date on which the Committee 
        would otherwise terminate.
    (c) Public Meetings.--
            (1) Public comments.--The Committee shall hold at least 2 
        public meetings each year for the purpose of accepting public 
        comments, including comments from small business owners.
            (2) Call of secretary or members.--The Committee shall also 
        meet as needed at the call of the Secretary or at the call of 
        two-thirds of the members of the Committee.
    (d) Chairperson.--
            (1) Election.--The Committee shall elect from among its 
        members a chairperson for a term of 4 years or until the 
        Committee terminates.
            (2) Subsequent terms.--A chairperson of the Committee may 
        be reelected chairperson but is ineligible to serve consecutive 
        terms as chairperson.
    (e) Staff.--The Secretary shall make available to the Committee 
such staff, information, personnel, administrative services, and 
assistance as the Committee may reasonably require to carry out its 
activities.
    (f) Application of Federal Advisory Committee Act.--
            (1) In general.--The provisions of the Federal Advisory 
        Committee Act (5 U.S.C. App.) shall apply to the Committee.
            (2) Exception.--Except for the 2 annual public meetings 
        required under subsection (c)(1), meetings of the Committee 
        shall be exempt from the requirements of subsections (a) and 
        (b) of sections 10 and 11 of the Federal Advisory Committee Act 
        (relating to open meetings, public notice, public 
        participation, and public availability of documents) (5 U.S.C. 
        App.), whenever and to the extent it is determined by the 
        President or the Secretary that such meetings will be concerned 
        with matters the disclosure of which would seriously compromise 
        the development by the United States Government of monetary and 
        financial policy.

SEC. 15. REPEAL OF THE EXCHANGE RATES AND ECONOMIC POLICY COORDINATION 
              ACT OF 1988.

    The Exchange Rates and International Economic Policy Coordination 
Act of 1988 (22 U.S.C. 5301 et seq.) is repealed.
                                 <all>