[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4004 Enrolled Bill (ENR)]
H.R.4004
One Hundred Eighteenth Congress
of the
United States of America
AT THE FIRST SESSION
Begun and held at the City of Washington on Tuesday,
the third day of January, two thousand and twenty-three
An Act
To approve and implement the Agreement between the American Institute in
Taiwan and the Taipei Economic and Cultural Representative Office in the
United States regarding Trade between the United States of America and
Taiwan, 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 ``United States-Taiwan Initiative on
21st-Century Trade First Agreement Implementation Act''.
SEC. 2. FINDINGS.
Congress finds the following:
(1) As a leading democracy, Taiwan is a key partner of the
United States in the Indo-Pacific region.
(2) The United States and Taiwan share democratic values, deep
commercial and economic ties, and strong people-to-people
connections. Those links serve as the impetus for expanding
engagement by the United States with Taiwan.
(3) Taiwan is the eighth-largest trading partner of the United
States and the United States is the second-largest trading partner
of Taiwan.
(4) Since 2020, the United States and Taiwan, under the
auspices of the American Institute in Taiwan (AIT) and the Taipei
Economic and Cultural Representative Office in the United States
(TECRO), have held an economic prosperity partnership dialogue to
enhance economic and commercial ties between the United States and
Taiwan, including with respect to supply chain security and
resiliency, investment screening, health, science, and technology,
and the digital economy.
(5) On June 1, 2022, the United States and Taiwan launched the
United States-Taiwan Initiative on 21st-Century Trade to deepen our
economic and trade relationship, advance mutual trade priorities
based on shared values, promote innovation, and support inclusive
economic growth for workers and businesses.
(6) On August 17, 2022, the United States and Taiwan announced
the negotiating mandate for formal trade negotiations under the
United States-Taiwan Initiative on 21st-Century Trade and agreed to
seek high-standard commitments.
(7) Article I, section 8, clause 3 of the Constitution of the
United States grants Congress authority over international trade.
The President lacks the authority to enter into binding trade
agreements absent approval from Congress.
(8) Congressional approval of the United States-Taiwan
Initiative on 21st-Century Trade First Agreement will ensure that
the agreement, and the trade relationship between the United States
and Taiwan more broadly, will be durable. A durable trade agreement
will foster sustained economic growth and give workers, consumers,
businesses, farmers, ranchers, and other stakeholders assurance
that commercial ties between the United States and Taiwan will be
long-lasting and reliable.
SEC. 3. PURPOSE.
The purpose of this Act is--
(1) to approve and implement the Agreement between the American
Institute in Taiwan and the Taipei Economic and Cultural
Representative Office in the United States regarding Trade between
the United States of America and Taiwan, done on June 1, 2023;
(2) to strengthen and develop economic relations between the
United States and Taiwan for our mutual benefit;
(3) to lay the foundation for further cooperation to expand and
enhance the benefits of the Agreement; and
(4) to establish transparency and consultation requirements
with respect to Further Agreements.
SEC. 4. DEFINITIONS.
In this Act:
(1) Agreement.--The term ``Agreement'' means the Agreement
between the American Institute in Taiwan and the Taipei Economic
and Cultural Representative Office in the United States regarding
Trade between the United States of America and Taiwan approved by
Congress under section 5.
(2) Appropriate congressional committees.--The term
``appropriate congressional committees'' means--
(A) the Committee on Finance of the Senate; and
(B) the Committee on Ways and Means of the House of
Representatives.
(3) Further agreement.--The term ``Further Agreement'' means--
(A) any trade agreement, other than the Agreement approved
by Congress under section 5, arising from or relating to the
August 17, 2022, negotiating mandate relating to the United
States-Taiwan Initiative on 21st-Century Trade; or
(B) any nonministerial modification or nonministerial
amendment to the Agreement.
(4) Negotiating text.--The term ``negotiating text'' means any
document that proposes the consideration, examination, or adoption
of a particular element or language in an international instrument.
(5) State law.--The term ``State law'' includes--
(A) any law of a political subdivision of a State; and
(B) any State law regulating or taxing the business of
insurance.
(6) Trade representative.--The term ``Trade Representative''
means the United States Trade Representative.
SEC. 5. APPROVAL OF AGREEMENT.
Congress approves the Agreement between the American Institute in
Taiwan and the Taipei Economic and Cultural Representative Office in
the United States regarding Trade between the United States of America
and Taiwan, done on June 1, 2023.
SEC. 6. ENTRY INTO FORCE OF AGREEMENT.
(a) Conditions for Entry Into Force of Agreement.--The President
may provide for the Agreement to enter into force not earlier than 30
days after the date on which the President submits to Congress a
certification under subsection (c).
(b) Consultation and Report.--The President, not later than 30 days
before submitting a certification under subsection (c), shall--
(1) consult with the appropriate congressional committees;
(2) submit to the appropriate congressional committees a report
that--
(A) explains the basis of the determination of the
President contained in that certification, including by
providing specific reference to the measures the parties to the
Agreement intend to use to comply with the obligations in the
Agreement; and
(B) describes, including through the use of economic
estimates and analyses, how entry into force of the Agreement
will further trade relations between the United States and
Taiwan and advance the interests of workers, consumers,
businesses, farmers, ranchers, and other stakeholders in the
United States; and
(3) answer in writing any questions that relate to potential
compliance and implementation of the Agreement that are submitted
by the appropriate congressional committees during the 15-day
period beginning on the date of the submission of the report under
paragraph (2).
(c) Certification.--A certification under this subsection is a
certification in writing that--
(1) indicates the President has determined Taiwan has taken
measures necessary to comply with the provisions of the Agreement
that are to take effect not later than the date on which the
Agreement enters into force; and
(2) identifies the anticipated date the President intends to
exchange notes or take any other action to notify Taiwan that the
United States has completed all procedures necessary to bring the
Agreement into force.
(d) Report on Implementation.--
(1) In general.--Not later than 180 days after entry into force
of the Agreement, the Trade Representative shall submit to the
appropriate congressional committees a report providing an
assessment of the implementation of the Agreement, including by
identifying any provisions for which further progress is necessary
to secure compliance.
(2) Form.--The report required by paragraph (1) shall be
submitted with any confidential business information clearly
identified or contained in a separate annex.
(3) Publication.--Not later than 5 days after the report
required by paragraph (1) is submitted to the appropriate
congressional committees, the Trade Representative shall publish
the report, with any confidential business information redacted, on
a publicly available website of the Office of the United States
Trade Representative.
SEC. 7. TRANSPARENCY AND CONSULTATION WITH RESPECT TO FURTHER
AGREEMENTS.
(a) Sense of Congress on Deepening Relationship With Taiwan.--It is
the sense of Congress that--
(1) the United States should continue to deepen its
relationship with Taiwan; and
(2) any Further Agreements should be high-standard,
enforceable, and meaningful to both the United States and Taiwan,
as well as subject to robust requirements on public transparency
and congressional consultation.
(b) Access to Texts of Further Agreements.--The Trade
Representative shall provide to the appropriate congressional
committees the following with respect to a Further Agreement:
(1) Negotiating text drafted by the United States prior to
sharing the negotiating text with Taiwan or otherwise sharing the
text outside the executive branch.
(2) Negotiating text drafted by Taiwan not later than 3 days
after receiving the text from Taiwan.
(3) Any consolidated negotiating texts that the United States
and Taiwan are considering, which shall include an attribution of
the source of each provision contained in those texts to either the
United States or Taiwan.
(4) The final text not later than 45 days before the Trade
Representative makes the text public or otherwise shares the text
outside the executive branch.
(c) Review of Texts.--
(1) Briefing.--The Trade Representative shall schedule a
briefing with the appropriate congressional committees to discuss
the texts provided under subsection (b).
(2) Review.--The appropriate congressional committees shall
have not less than--
(A) 2 business days prior to the briefing under paragraph
(1) to review the texts provided under subsection (b); and
(B) 4 business days after the briefing to provide comments
with respect to the texts before the Trade Representative
transmits any such texts to Taiwan.
(3) Additional time to review united states negotiating text.--
If, during the period specified in paragraph (2)(B), two Members of
Congress who are not of the same political party and each of whom
is the Chair or Ranking Member of one of the appropriate
congressional committees jointly request additional time to review
the negotiating text provided under subsection (b)(1), the Trade
Representative shall not transmit the text to Taiwan for a period
of 15 business days following the request, unless the request
indicates less time is necessary or such Members issue a subsequent
joint notification to the Trade Representative that they have
concluded their review sooner.
(d) Notification and Briefing During Negotiations.--The Trade
Representative shall--
(1) not later than one business day after scheduling any
negotiating round with respect to a Further Agreement, promptly
notify the appropriate congressional committees and provide those
committees with the dates and locations for the negotiating round;
(2) ensure that any individual described in section
104(c)(2)(C) of the Bipartisan Congressional Trade Priorities and
Accountability Act of 2015 (19 U.S.C. 4203(c)(2)(C)) that attends a
negotiating round is accredited as a member of the United States
delegation during any such negotiating round; and
(3) provide daily briefings to the individuals described in
paragraph (2) during any such negotiating round regarding the
status of those negotiations, including any tentative agreement to
accept any aspect of negotiating text.
(e) Approval.--A Further Agreement shall not take effect unless--
(1) the President, at least 60 days before the day on which the
President enters into the Further Agreement, publishes the text of
the Further Agreement on a publicly available website of the Office
of the United States Trade Representative; and
(2) a bill is enacted into law expressly approving the Further
Agreement and, if necessary, making any required changes to United
States law.
SEC. 8. RELATIONSHIP OF THE AGREEMENT TO UNITED STATES AND STATE LAW.
(a) Relationship of the Agreement to United States Law.--
(1) United states law to prevail in conflict.--No provision of
the Agreement, nor the application of any such provision to any
person or circumstance, which is inconsistent with any law of the
United States, shall have effect.
(2) Internal revenue code.--The Agreement does not constitute a
free trade agreement for purposes of section 30D(e)(1)(A)(i)(II) of
the Internal Revenue Code of 1986.
(3) Construction.--Unless specifically provided for in this
Act, nothing in this Act shall be construed--
(A) to amend or modify any law of the United States; or
(B) to limit any authority conferred under any law of the
United States.
(b) Relationship of the Agreement to State Law.--No State law, or
the application thereof, may be declared invalid as to any person or
circumstance on the ground that the provision or application is
inconsistent with the Agreement, except in an action brought by the
United States for the purpose of declaring such law or application
invalid.
(c) Effect of the Agreement With Respect to Private Remedies.--No
person other than the United States--
(1) shall have any cause of action or defense under the
Agreement or by virtue of congressional approval thereof; or
(2) may challenge, in any action brought under any provision of
law, any action or inaction by any department, agency, or other
instrumentality of the United States, any State, or any political
subdivision of a State, on the ground that such action or inaction
is inconsistent with the Agreement.
Speaker of the House of Representatives.
Vice President of the United States and
President of the Senate.