[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 295 Introduced in Senate (IS)]

<DOC>






118th CONGRESS
  1st Session
                                 S. 295

   To grant certain authorities to the President to combat economic 
        coercion by foreign adversaries, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            February 7, 2023

 Mr. Young (for himself and Mr. Coons) introduced the following bill; 
which was read twice and referred to the Committee on Foreign Relations

_______________________________________________________________________

                                 A BILL


 
   To grant certain authorities to the President to combat economic 
        coercion by foreign adversaries, 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 ``Countering Economic Coercion Act of 
2023''.

SEC. 2. SENSE OF CONGRESS.

    The following is the sense of Congress:
            (1) Foreign adversaries are increasingly using economic 
        coercion to pressure, punish, and influence United States 
        allies and partners.
            (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.
            (3) Economic coercion can threaten the essential security 
        of the United States and its allies.
            (4) Economic coercion is often characterized by--
                    (A) arbitrary, abusive, and discriminatory actions 
                that seek to interfere with sovereign actions, violate 
                international trade rules, and run counter to the 
                rules-based international order;
                    (B) capricious, pre-textual, and non-transparent 
                actions taken without due process afforded;
                    (C) intimidation or threats of punitive actions; 
                and
                    (D) informal actions that take place without 
                explicit government action.
            (5) 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.
            (6) The United States should provide meaningful economic 
        and political support to foreign trading partners affected by 
        economic coercion.
            (7) 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.
            (8) 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.
            (9) Such coordination will further demonstrate broad 
        resolve against economic coercion.

SEC. 3. DEFINITIONS.

    In this Act:
            (1) Appropriate congressional committees.--The term 
        ``appropriate congressional committees''--
                    (A) means--
                            (i) the Committee on Foreign Relations of 
                        the Senate; and
                            (ii) the Committee on Foreign Affairs of 
                        the House of Representatives; and
                    (B) includes--
                            (i) with respect to the exercise of any 
                        authority under section 5(a)(1) or 5(b)--
                                    (I) the Committee on Finance of the 
                                Senate; and
                                    (II) the Committee on Ways and 
                                Means of the House of Representatives; 
                                and
                            (ii) with respect to the exercise of any 
                        authority under paragraph (6) or (8) of section 
                        5(a)--
                                    (I) the Committee on Banking, 
                                Housing, and Urban Affairs of the 
                                Senate; and
                                    (II) the Committee on Financial 
                                Services of the House of 
                                Representatives.
            (2) Economic coercion.--The term ``economic coercion'' 
        means actions, practices, or threats undertaken by a foreign 
        adversary to unreasonably 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.
            (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).
            (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)).
            (5) Foreign trading partner.--The term ``foreign trading 
        partner'' means a jurisdiction that is a trading partner of the 
        United States.

SEC. 4. DETERMINATION OF ECONOMIC COERCION.

    (a) Presidential Determination.--
            (1) 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--
                    (A) in section 5(a) to support or assist the 
                foreign trading partner; or
                    (B) in section 5(b) to penalize the foreign 
                adversary.
            (2) Information; hearings.--To inform any determination or 
        exercise of authority under paragraph (1), the President 
        shall--
                    (A) obtain the written opinion and analysis of 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;
                    (B) seek information and advice from and consult 
                with other relevant officers of the United States; and
                    (C) afford other interested parties an opportunity 
                to present relevant information and advice.
            (3) Consultation with congress.--The President shall 
        consult with the appropriate congressional committees--
                    (A) not earlier than 30 days and not later than 10 
                days before exercising any authority under paragraph 
                (1); and
                    (B) not less frequently than once every 180 days 
                for the duration of the exercise of such authority.
            (4) 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 paragraph 
        (1), the President shall publish in the Federal Register--
                    (A) a notice of the determination or exercise of 
                authority; and
                    (B) a description of the economic coercion that the 
                foreign adversary is applying to the foreign trading 
                partner and other circumstances that led to such 
                determination or exercise of authority.
    (b) Expedited Determination.--
            (1) In general.--If the Secretary of State determines that 
        a foreign trading partner is subject to economic coercion by a 
        foreign adversary, the Secretary of State or the head of the 
        relevant Federal agency may exercise any authority described in 
        paragraphs (2) through (7) of section 5(a).
            (2) Notices.--
                    (A) In general.--Not later than 10 days after a 
                determination under paragraph (1), the Secretary of 
                State shall submit to the appropriate congressional 
                committees a notice of such determination.
                    (B) Exercise of authority.--Not later than 10 days 
                after the exercise of any authority described in 
                paragraphs (2) through (7) of section 5(a) that relies 
                on the determination for which the Secretary of State 
                submitted notice under subparagraph (A), the Secretary 
                of State or the head of the relevant Federal agency 
                relying on such determination shall submit to the 
                appropriate congressional committees a notice of intent 
                to exercise such authority, but not more frequently 
                than once every 90 days.
    (c) Revocation of Determination.--
            (1) In general.--Any determination made by the President 
        under subsection (a) or the Secretary of State under subsection 
        (b) shall be revoked on the earliest of--
                    (A) the date that is 2 years after the date of such 
                determination;
                    (B) the date of the enactment of a joint resolution 
                of disapproval revoking the determination; or
                    (C) the date on which the President issues a 
                proclamation revoking the determination.
            (2) Termination of authorities.--Any authority described in 
        section 5(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--
                    (A) any action taken or proceeding pending not 
                finally concluded or determined on such date; or
                    (B) any rights or duties that matured or penalties 
                that were incurred prior to such date.

SEC. 5. AUTHORITIES TO ASSIST FOREIGN TRADING PARTNERS AFFECTED BY 
              ECONOMIC COERCION.

    (a) Authorities With Respect to Foreign Trading Partners.--The 
authorities described in this subsection are the following:
            (1) Subject to section 7, with respect to goods imported 
        into the United States from a foreign trading partner subject 
        to economic coercion by a foreign adversary--
                    (A) the reduction or elimination of duties; or
                    (B) the modification of tariff-rate quotas.
            (2) Requesting appropriations for foreign aid to the 
        foreign trading partner.
            (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.).
            (4) Expedited regulatory processes related to the 
        importation of goods and services into the United States from 
        the foreign trading partner.
            (5) Requesting the necessary authority and appropriations 
        for sovereign loan guarantees to the foreign trading partner.
            (6) The waiver of policy requirements (other than policy 
        requirements mandated by an Act of Congress, including the 
        policies and procedures established pursuant to section 11 of 
        the Export-Import Bank Act of 1945 (12 U.S.C. 635i-5)) as 
        necessary to facilitate the provision of financing to support 
        exports to the foreign trading partner.
            (7) Requesting appropriations for loan loss reserves to 
        facilitate the provision of financing to support United States 
        exports to the foreign trading partner.
            (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)).
    (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:
            (1) The increase in duties.
            (2) The modification of tariff-rate quotas.

SEC. 6. COORDINATION WITH ALLIES AND PARTNERS.

    (a) Coordination by President.--After a determination by the 
President that a foreign trading partner is subject to economic 
coercion by a foreign adversary, the President shall endeavor to 
coordinate--
            (1) the exercise of the authorities described in section 5 
        with the exercise of relevant authorities by allies and 
        partners in order to broaden economic support to the foreign 
        trading partner affected by economic coercion; and
            (2) with allies and partners to issue joint condemnation of 
        the actions of the foreign adversary and support for the 
        foreign trading partner.
    (b) Coordination by Secretary.--The Secretary of State, in 
coordination with the heads of the relevant agencies, shall endeavor--
            (1) to encourage allies and partners to identify or create 
        mechanisms and authorities necessary to facilitate the 
        coordination under subsection (a)(1);
            (2) to coordinate with allies and partners to increase 
        opposition to economic coercion in the international community;
            (3) to coordinate with allies and partners to deter the use 
        of economic coercion by foreign adversaries; and
            (4) to engage with foreign trading partners to gather 
        information about possible instances of economic coercion and 
        share such information with the appropriate congressional 
        committees.

SEC. 7. CONDITIONS WITH RESPECT TO TARIFF AUTHORITY.

    (a) Limitations on Tariff Authority.--The authority described in 
section 5(a)(1)--
            (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.);
            (2) may only apply to an article if--
                    (A) such article is--
                            (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
                            (ii) imported directly from the foreign 
                        trading partner into the customs territory of 
                        the United States; and
                    (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;
            (3) may not apply to any article that is the product of the 
        foreign trading partner by virtue of having merely undergone--
                    (A) simple combining or packaging operations; or
                    (B) mere dilution with water or another substance 
                that does not materially alter the characteristics of 
                the article; and
            (4) may not be applied in a manner that would provide 
        indirect economic benefit to a foreign adversary.
    (b) Consultation With Congress.--
            (1) In general.--Before exercising any authority described 
        in subsection (a)(1) or (b) of section 5, the President shall 
        submit to the appropriate congressional committees a notice of 
        intent to exercise such authority that includes a description 
        of--
                    (A) the circumstances that merit the exercise of 
                such authority;
                    (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;
                    (C) the expected effects of the exercise of such 
                authority on the foreign trading partner; and
                    (D) the expected effects of the exercise of such 
                authority on the foreign adversary.
            (2) Congressional review.--
                    (A) In general.--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.
                    (B) Limitation on exercise of authority during 
                congressional review.--Notwithstanding any other 
                provision of law, during the period for congressional 
                review described in subparagraph (A) of a notice of 
                intent submitted under paragraph (1), 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.
                    (C) Effect of enactment of joint resolution of 
                disapproval.--Notwithstanding any other provision of 
                law, if a joint resolution of disapproval relating to a 
                notice of intent submitted under paragraph (1) is 
                enacted during the period for congressional review 
                described in subparagraph (A), the President may not 
                take the proposed exercise of authority.

SEC. 8. PROCESS FOR JOINT RESOLUTIONS OF APPROVAL OR DISAPPROVAL.

    (a) Definitions.--In this Act:
            (1) Joint resolution of approval.--The term ``joint 
        resolution of approval'' means only a joint resolution of 
        either House of Congress--
                    (A) which does not have a preamble;
                    (B) the title of which is as follows: ``A joint 
                resolution approving the President's exercise of 
                authority under section 5 of the Countering Economic 
                Coercion Act of 2023.''; and
                    (C) the sole matter after the resolving clause of 
                which is as follows: ``That Congress approves the 
                exercise of authority by the President under section 5 
                of the Countering Economic Coercion Act of 2023, 
                submitted to Congress on ___.'', with the blank space 
                being filled with the appropriate date.
            (2) Joint resolution of disapproval.--The term ``joint 
        resolution of disapproval'' means--
                    (A) with respect to a determination under section 
                4(a), only a joint resolution of either House of 
                Congress--
                            (i) which does not have a preamble;
                            (ii) the title of which is as follows: ``A 
                        joint resolution disapproving the President's 
                        determination under section 4(a) of the 
                        Countering Economic Coercion Act of 2023.''; 
                        and
                            (iii) the sole matter after the resolving 
                        clause of which is as follows: ``That Congress 
                        disapproves the determination of the President 
                        under section 4(a) of the Countering Economic 
                        Coercion Act of 2023, published in the Federal 
                        Register on ___.'', with the blank space being 
                        filled with the appropriate date;
                    (B) with respect to a determination under section 
                4(b), only a joint resolution of either House of 
                Congress--
                            (i) which does not have a preamble;
                            (ii) the title of which is as follows: ``A 
                        joint resolution disapproving the Secretary of 
                        State's determination under section 4(b) of the 
                        Countering Economic Coercion Act of 2023.''; 
                        and
                            (iii) the sole matter after the resolving 
                        clause of which is as follows: ``That Congress 
                        disapproves the determination of the Secretary 
                        of State under section 4(b) of the Countering 
                        Economic Coercion Act of 2023, submitted to 
                        Congress on ___.'', with the blank space being 
                        filled with the appropriate date; and
                    (C) with respect to section 7, only a joint 
                resolution of either House of Congress--
                            (i) which does not have a preamble;
                            (ii) the title of which is as follows: ``A 
                        joint resolution disapproving the President's 
                        exercise of authority under section 5 of the 
                        Countering Economic Coercion Act of 2023.''; 
                        and
                            (iii) the sole matter after the resolving 
                        clause of which is as follows: ``That Congress 
                        disapproves the exercise of authority by the 
                        President under section 5 of the Countering 
                        Economic Coercion Act of 2023, submitted to 
                        Congress on ___.'', with the blank space being 
                        filled with the appropriate date.
    (b) Introduction in the House of Representatives.--During a period 
of 5 legislative days beginning on the date that a notice of 
determination is published in the Federal Register in accordance with 
section 4(a)(4) or submitted to the appropriate congressional 
committees in accordance with section 4(b)(2)(A) or a notice of intent 
is submitted to the appropriate congressional committees in accordance 
with section 4(b)(2)(B) or section 7(b)(1), a joint resolution of 
approval or a joint resolution of disapproval may be introduced in the 
House of Representatives by the majority leader or the minority leader.
    (c) Introduction in the Senate.--During a period of 5 days on which 
the Senate is in session beginning on the date that a notice of 
determination is published in the Federal Register in accordance with 
section 4(a)(4) or submitted to the appropriate congressional 
committees in accordance with section 4(b)(2)(A) or a notice of intent 
is submitted to the appropriate congressional committees in accordance 
with section 4(b)(2)(B) or section 7(b)(1), a joint resolution of 
approval or a joint resolution of disapproval may be introduced in the 
Senate by the majority leader (or the majority leader's designee) or 
the minority leader (or the minority leader's designee).
    (d) Floor Consideration in the House of Representatives.--
            (1) Reporting and discharge.--If a committee of the House 
        of Representatives to which a joint resolution of approval or 
        joint resolution of disapproval has been referred has not 
        reported such joint resolution within 10 legislative days after 
        the date of referral, that committee shall be discharged from 
        further consideration of the joint resolution.
            (2) Proceeding to consideration.--In the House of 
        Representatives, the following procedures shall apply to a 
        joint resolution of approval or a joint resolution of 
        disapproval:
                    (A) Beginning on the third legislative day after 
                each committee to which a joint resolution of approval 
                or joint resolution of disapproval has been referred 
                reports it to the House of Representatives or has been 
                discharged from further consideration of the joint 
                resolution, it shall be in order to move to proceed to 
                consider the joint resolution in the House of 
                Representatives.
                    (B) All points of order against the motion are 
                waived. Such a motion shall not be in order after the 
                House of Representatives has disposed of a motion to 
                proceed on a joint resolution with regard to the same 
                certification. The previous question shall be 
                considered as ordered on the motion to its adoption 
                without intervening motion. The motion shall not be 
                debatable. A motion to reconsider the vote by which the 
                motion is disposed of shall not be in order.
            (3) Consideration.--The joint resolution shall be 
        considered as read. All points of order against the joint 
        resolution and against its consideration are waived. The 
        previous question shall be considered as ordered on the joint 
        resolution to final passage without intervening motion except 
        two hours of debate equally divided and controlled by the 
        sponsor of the joint resolution (or a designee) and an 
        opponent. A motion to reconsider the vote on passage of the 
        joint resolution shall not be in order.
    (e) Consideration in the Senate.--
            (1) Committee referral.--A joint resolution of approval or 
        a joint resolution of disapproval introduced in the Senate 
        shall be referred to the Committee on Foreign Relations.
            (2) Reporting and discharge.--If the Committee on Foreign 
        Relations has not reported a joint resolution of approval or a 
        joint resolution of disapproval within 10 days on which the 
        Senate is in session after the date of referral of such joint 
        resolution, that committee shall be discharged from further 
        consideration of such joint resolution and the joint resolution 
        shall be placed on the appropriate calendar.
            (3) Motion to proceed.--Notwithstanding Rule XXII of the 
        Standing Rules of the Senate, it is in order at any time after 
        the Committee on Foreign Relations reports the joint resolution 
        of approval or the joint resolution of disapproval to the 
        Senate or has been discharged from its consideration (even 
        though a previous motion to the same effect has been disagreed 
        to) to move to proceed to the consideration of the joint 
        resolution, and all points of order against the joint 
        resolution (and against consideration of the joint resolution) 
        shall be waived. The motion to proceed is not debatable. The 
        motion is not subject to a motion to postpone. A motion to 
        reconsider the vote by which the motion is agreed to or 
        disagreed to shall not be in order. If a motion to proceed to 
        the consideration of the joint resolution of approval or the 
        joint resolution of disapproval is agreed to, the joint 
        resolution shall remain the unfinished business until disposed.
            (4) Debate.--Debate on a joint resolution of approval or a 
        joint resolution of disapproval, and on all debatable motions 
        and appeals in connection with such joint resolution, shall be 
        limited to not more than 10 hours, which shall be divided 
        equally between the majority and minority leaders or their 
        designees. A motion to further limit debate is in order and not 
        debatable. An amendment to, or a motion to postpone, or a 
        motion to proceed to the consideration of other business, or a 
        motion to recommit the joint resolution is not in order.
            (5) Vote on passage.--The vote on passage shall occur 
        immediately following the conclusion of the debate on the joint 
        resolution of approval or the joint resolution of disapproval 
        and a single quorum call at the conclusion of the debate, if 
        requested in accordance with the rules of the Senate.
            (6) Rules of the chair on procedure.--Appeals from the 
        decisions of the Chair relating to the application of the rules 
        of the Senate, as the case may be, to the procedure relating to 
        the joint resolution of approval or the joint resolution of 
        disapproval shall be decided without debate.
            (7) Consideration of veto messages.--Debate in the Senate 
        of any veto message with respect to the joint resolution of 
        approval or the joint resolution of disapproval, including all 
        debatable motions and appeals in connection with such joint 
        resolution, shall be limited to 10 hours, to be equally divided 
        between, and controlled by, the majority leader and the 
        minority leader or their designees.
    (f) Procedures in the Senate.--Except as otherwise provided in this 
section, the following procedures shall apply in the Senate to a joint 
resolution of approval or a joint resolution of disapproval to which 
this section applies:
            (1) Except as provided in paragraph (2), a joint resolution 
        of approval or a joint resolution of disapproval that has 
        passed the House of Representatives shall, when received in the 
        Senate, be referred to the Committee on Foreign Relations for 
        consideration in accordance with this subsection.
            (2) If a joint resolution of approval or a joint resolution 
        of disapproval to which this section applies was introduced in 
        the Senate before receipt of a joint resolution of approval or 
        a joint resolution of disapproval that has passed the House of 
        Representatives, the joint resolution from the House of 
        Representatives shall, when received in the Senate, be placed 
        on the calendar. If this paragraph applies, the procedures in 
        the Senate with respect to a joint resolution of approval or a 
        joint resolution of disapproval introduced in the Senate that 
        contains the identical matter as a joint resolution of approval 
        or a joint resolution of disapproval that passed the House of 
        Representatives shall be the same as if no joint resolution of 
        approval or joint resolution of disapproval had been received 
        from the House of Representatives, except that the vote on 
        passage in the Senate shall be on the joint resolution of 
        approval or the joint resolution of disapproval that passed the 
        House of Representatives.
    (g) Rules of the House of Representatives and Senate.--This section 
is enacted by Congress--
            (1) as an exercise of the rulemaking power of the Senate 
        and the House of Representatives, respectively, and as such is 
        deemed a part of the rules of each House, respectively, but 
        applicable only with respect to the procedure to be followed in 
        that House in the case of a joint resolution of approval or a 
        joint resolution of disapproval under this paragraph, and 
        supersedes other rules only to the extent that it is 
        inconsistent with such rules; and
            (2) with full recognition of the constitutional right of 
        either House to change the rules (so far as relating to the 
        procedure of that House) at any time, in the same manner, and 
        to the same extent as in the case of any other rule of that 
        House.
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