[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

[[Page H3052]]

       (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

[[Page H3053]]

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.

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