[Congressional Record Volume 169, Number 108 (Wednesday, June 21, 2023)]
[House]
[Pages H3051-H3054]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
UNITED STATES-TAIWAN INITIATIVE ON 21ST-CENTURY TRADE FIRST AGREEMENT
IMPLEMENTATION ACT
Mr. SMITH of Missouri. Mr. Speaker, I move to suspend the rules and
pass the bill (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, as amended.
The Clerk read the title of the bill.
The text of the bill is as follows:
H.R. 4004
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
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(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.
The SPEAKER pro tempore. Pursuant to the rule, the gentleman from
Missouri (Mr. Smith) and the gentleman from Illinois (Mr. Schneider)
each will control 20 minutes.
The Chair recognizes the gentleman from Missouri.
General Leave
Mr. SMITH of Missouri. Mr. Speaker, I ask unanimous consent that all
Members may have 5 legislative days in which to revise and extend their
remarks and submit extraneous material on the bill under consideration.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from Missouri?
There was no objection.
Mr. SMITH of Missouri. Mr. Speaker, I yield myself such time as I may
consume.
Mr. Speaker, Congress is sending a bipartisan message to President
Biden today that we will not sit idly by as the administration ignores
our constitutional role in developing U.S. trade policy.
The relationship between the United States and Taiwan is vital to
U.S. interests in the Indo-Pacific. This initial trade agreement
negotiated by the Biden administration is a good step. It builds on
successful provisions that were included in the USMCA that was
negotiated by President Trump, and it shows the world that the Chinese
Communist Party will not intimidate the United States from deepening
our relationship with Taiwan.
While Congress supports the early agreement that came from these
negotiations, we will not stand by passively as the Biden
administration, or any administration, attempts to bind the United
States in a trade agreement without approval from Congress. Congress
must be in the driver's seat on trade policy, not a passenger along for
the ride.
Trade impacts every American. When done right, trade can boost small
businesses, help American workers, and open up new markets for American
farmers. Bad trade policy, on the other hand, can kill American jobs
and give other nations unfair advantages over U.S. manufacturers,
workers, and agriculture.
Every American deserves a voice in the outcome of these negotiations
that impact their lives so much, which is why Congress, as their voice
in Washington, must be involved in the development and approval of
these agreements.
The Taiwan trade bill before us today restores congressional
authority on
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trade policy. It celebrates this agreement, but it also makes it clear
that it cannot take effect unless this legislation is signed into law.
It forces the administration to consult with Congress in a meaningful
way moving forward, something that has not occurred to date. It
requires any future agreements with Taiwan to be subject to a vote in
Congress.
Without a vote on trade agreements, Congress can be ignored. This
will ensure trade agreements are in the best interest of American
workers, families, farmers, and small businesses. This bill has broad
bipartisan support in both the House and in the Senate. Democrats and
Republicans agree that U.S. trade policy must come through Congress,
and the President will no longer be allowed to sidestep our
constitutional authority.
Mr. Speaker, I urge my colleagues on both sides of the aisle to stand
up for the voice of the American people and vote to pass this bill. I
reserve the balance of my time.
Mr. SCHNEIDER. Mr. Speaker, I yield myself such time as I may
consume.
Mr. Speaker, I am proud to join my Republican and Democratic
colleagues in both the House and the Senate in this effort to
demonstrate our commitment to the people of Taiwan and to affirm
Congress' constitutional authority on trade.
Every Democrat on the Ways and Means Committee has cosponsored this
bill, and just last week, this legislation passed out of the Ways and
Means Committee unanimously. I urge my colleagues to support this
legislation.
Before turning to the substance of the bill today, I remind my
colleagues that the House Democrats improved the USMCA. Congress
improved both the substance of the trade agreement, especially on
matters related to labor, environment, and enforcement, and also the
process.
Our commitment to building a modern, proworker deal led to a trade
agreement that was endorsed by labor, the business community, and, most
importantly, the American people.
Congress' fierce leadership on the USMCA brought about an agreement
that reflects the priorities of House Democrats. For instance, we
fought hard to establish new structure for aggressive enforcement of
the USMCA and to back it up with funding for enforcement actions.
USMCA now stands as a powerful beacon for what is possible when it
comes to durable, enforceable trade agreements. I credit that to the
work and consensus building of Congress. It is the collaboration
between Congress and the executive branch that allows trade policy to
live up to its fullest potential and, in this critical moment, that
cannot be forgotten. This brings us to the legislation before us today,
the Taiwan Implementation Act.
This is a matter of standing up for the prerogatives of the Ways and
Means Committee. Congress is charged with trade responsibilities, and
trade falls to the Ways and Means Committee. I believe that you get
better outcomes when Congress is included in the trade negotiations,
and I believe that going forward making sure Congress is fully included
is not only sensible but will lead to a better outcome.
In short, Congress, and within Congress the Ways and Means Committee,
oversees trade policy. We should continue to defend that position.
I will now turn to our strong support for the people of Taiwan.
Congressional Democrats are unwavering in their support for the people
of Taiwan, a people who have built a robust and thriving democracy that
serves as a beacon in the region. As Taiwan faces incredible pressure
from its authoritarian neighbor, it is vital that this institution
stand and support our Democratic partner.
Strengthening bilateral trade relations with Taiwan also strengthens
our shared determination to preserve democracy at home and abroad. As
we see growing aggression by certain countries toward Democratic values
and troubling erosions of the rule of law, it is critical that American
trade policy reflect our global commitment to promoting democracy and
peace.
The Biden administration has reflected this commitment by
prioritizing America's economic and trade relationship with Taiwan, a
priority undoubtedly shared by Congress.
The Taiwan Implementation Act demonstrates Congress' strong support
for strengthening our bilateral trade relationship with Taiwan and our
commitment to ensure trade agreements are durable.
The U.S. Constitution gives Congress exclusive authority to regulate
foreign commerce. This legislation approves what the administration has
negotiated with Taiwan and sets forth strong consultation and
transparency requirements that ensure future trade agreements with
Taiwan carry the will of the American people behind them.
Trade impacts every part of people's lives; from the food we eat, to
the clothes we buy, to the cars we drive. It is critical that Congress
act to support this first trade agreement with Taiwan and ensure that
future trade agreements are subject to a congressional approval
process. The Ways and Means Committee is an important gatekeeper of our
trade priorities and the American people expect us to lead on these
matters.
The Taiwan Implementation Act affirms our authority to do just that,
while underscoring our shared commitment to furthering the deep,
economic, and people-to-people ties America enjoys with Taiwan.
Mr. Speaker, I reserve the balance of my time.
Mr. SMITH of Missouri. Mr. Speaker, I have no additional speakers,
and I am prepared to close. I reserve the balance of my time.
Mr. SCHNEIDER. Mr. Speaker, I yield 3 minutes to the gentleman from
Texas (Mr. Doggett).
Mr. DOGGETT. Mr. Speaker, as a cosponsor of this legislation, I
recognize the importance of our engagement with Taiwan economically, as
well as our military presence to deter conflict and to maintain safe
passage through the Taiwan Strait and the South China Sea. These are
international waters.
This incomplete trade agreement that we take up is a modest first
step and can only be enforced after the approval by this Congress. The
work that we are already doing with Taiwan benefits businesses across
America. Taiwan is already our ninth largest goods trading partner with
over $90 billion in two-way trade during 2020.
We have seen the People's Republic of China, unfortunately, violently
suppress democracy in Hong Kong, breaching its claim that it would
support one country and two systems. We have seen, apparently, over a
million Uyghurs who have been placed in concentration camps. There is
every reason to be concerned by the threats the PRC has made about the
future of democracy in Taiwan.
The opportunity tonight is not only to speak up for Taiwan, but as
Chairman Smith indicated, to reaffirm the role that Congress plays not
only with Taiwan, but with all of our trading partners.
No administration, neither Democratic nor Republican, can adopt
trading agreements that are enforceable without Congress exercising its
constitutional responsibility for international trade. We will not
yield that authority. It applies not only here, but to every trading
partner.
We do, as we move forward in supporting Taiwan economically and
militarily, need to recognize as well that it is not a matter of
abandoning Taiwan to talk with China, to seek to avoid war with the
People's Republic of China, which would be disastrous for the entire
world. While effective military deterrence, strong deterrence is
essential, this trading engagement is important. Our diplomatic power
is also important, and, in that regard, the recent Republican attacks
on Secretary of State Blinken for attempting to normalize diplomatic
relations in Beijing are outrageous and totally counterproductive.
As a member of the Taiwan Caucus here in the House, I salute
Taiwanese Americans, particularly their contribution to my hometown of
Austin, and to the valuable insights that they have given me about the
importance of our relationship with Taiwan.
Mr. SMITH of Missouri. Mr. Speaker, I reserve the balance of my time.
Mr. SCHNEIDER. Mr. Speaker, in closing, I emphasize this bicameral,
bipartisan legislation affirms Congress' constitutional authority on
trade and will not only support Taiwan's democracy but strengthen our
bilateral trade relations.
[[Page H3054]]
I thank my colleagues, both Republicans and Democrats, on the Ways
and Means Committee for supporting this legislation. I thank Senator
Wyden and Senator Crapo for working with the committee on this bill.
The people of Taiwan have built a robust, thriving democracy, and both
the Biden administration and Congress have recognized that deepening
our economic connection is a top priority.
Mr. Speaker, I yield back the balance of my time.
{time} 1930
Mr. SMITH of Missouri. Mr. Speaker, I yield myself the balance of my
time.
The legislation before us today is an important first step in pushing
back against executive overreach on trade. It also reinforces our
support for a stronger relationship with our close partner, Taiwan.
I appreciate that my colleagues across the aisle agree that
protecting Congress' constitutional powers is vital and that allowing
any administration to continue unchecked would only dilute the voices
of millions of Americans in Washington and embolden the executive
branch to step on more of our Article I powers.
I am especially appreciative of the strong partnership in this effort
of Ranking Member Neal in the House and Senators Wyden and Crapo in the
Senate.
U.S. trade policy must first and foremost protect American workers,
farmers, families, and small businesses. We have a duty today to ensure
the American people maintain a say in what those policies look like.
Mr. Speaker, I urge all Members of the House to support this
legislation, and I yield back the balance of my time.
The SPEAKER pro tempore. The question is on the motion offered by the
gentleman from Missouri (Mr. Smith) that the House suspend the rules
and pass the bill, H.R. 4004, as amended.
The question was taken; and (two-thirds being in the affirmative) the
rules were suspended and the bill, as amended, was passed.
A motion to reconsider was laid on the table.
____________________