[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4004 Introduced in House (IH)]

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118th CONGRESS
  1st Session
                                H. R. 4004

 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.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             June 12, 2023

 Mr. Smith of Missouri (for himself, Mr. Neal, Mr. Smith of Nebraska, 
 Ms. Sewell, Mr. Kelly of Pennsylvania, Ms. DelBene, Mr. Ferguson, Ms. 
 Chu, Mr. Moore of Utah, Mr. Panetta, Ms. Van Duyne, Mr. Feenstra, Ms. 
 Malliotakis, Mr. Schneider, Ms. Tenney, Ms. Sanchez, Mr. Kustoff, Mr. 
Doggett, Mr. Blumenauer, Mr. Davis of Illinois, Mr. Evans, Mr. Kildee, 
Mrs. Miller of West Virginia, Mr. Larson of Connecticut, Mr. Higgins of 
 New York, Mrs. Fischbach, Mrs. Steel, Mr. Smucker, Mr. Arrington, and 
  Mr. Estes) introduced the following bill; which was referred to the 
                      Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
 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 section (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 the United States should continue to deepen 
its relationship with Taiwan. 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), 2 
        members who are not of the same political party and each of 
        whom is the Chair or Ranking Member of 1 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 the Chair and 
        Ranking Member 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.
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