[Congressional Record Volume 169, Number 109 (Thursday, June 22, 2023)]
[Senate]
[Pages S2208-S2209]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]



                       Tax Convention with Chile

  Mr. RISCH. Mr. President, today, the Senate is considering the Chile 
tax convention. This treaty has been approved by substantial bipartisan 
majorities in the Foreign Relations Committee in four separate 
Congresses and has been pending since 2012. It is past time to approve 
it and provide needed relief to U.S. investors and businesses in Chile.
  Without ratifications, Chilean taxes on U.S. company operations in 
Chile will rise up to 44 percent in 2027 when the special waiver 
expires. Meanwhile, our competitors with Chilean operations would only 
pay a 35-percent rate. That includes companies with headquarters in 
Japan, Canada, Australia, Britain, and, of course, China.

[[Page S2209]]

  Tax treaties help the business community by minimizing uncertainty 
and promoting a favorable business environment. A tax convention with 
Chile eliminates double taxation, provides certainty, and is a natural 
counterpart to our free-trade agreement with Chile.
  This treaty provides tools to ensure U.S. taxpayers will be treated 
equally and fairly in Chile. It allows them to invest and compete with 
the knowledge that they will not face discriminatory barriers. The 
treaty provides tools to help resolve tax disputes between the United 
States and our tax treaty partners. Without such tools, U.S. investors 
would have limited ability to resolve these problems on their own. It 
is not just businesses that will benefit from this treaty; the 
convention imposes reasonable limits on the amount of tax Chile can 
impose on U.S. persons who might live or work in Chile. Finally, this 
treaty will help us prevent tax fraud in Chile.
  The tax convention has been held up for a decade. I am pleased that 
we are finally moving it forward today. I urge my colleagues to approve 
this Chile convention. It is a treaty, of course, and requires two-
thirds vote.
  I suggest the absence of a quorum.
  The PRESIDING OFFICER. The clerk will call the roll.
  The legislative clerk proceeded to call the roll.
  Mr. SCHUMER. Mr. President, I ask unanimous consent that the order 
for the quorum call be rescinded.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  Mr. SCHUMER. Mr. President, this treaty is not getting much 
attention, but it is one of the more important things we are doing in 
the Senate in the last month--in the last few months--because it is 
very important for U.S. leadership, in the things we care about in 
terms of climate change, clean tech, EV batteries, that we have this 
treaty.
  The treaty is going to have lasting benefits for the United States 
and Chile. It expands investment in one of the most mineral-rich 
regions in the world--critical for making EV batteries and other clean 
tech. It will ensure that Chinese competitors won't continue to have 
the edge over U.S. companies in the race for lithium and other minerals 
when it comes to Chile.
  The Chilean people want to be close to the United States. I see some 
of our Chilean representatives in the Gallery. This treaty makes us 
much closer because there is no double taxation for American companies 
when they want to invest in Chile.
  Let's not forget that Chile has more lithium than any other country 
in the world, and lithium is one of those key elements that we need to 
make EV batteries and make solar panels and so many other things.
  So this Chile tax treaty is very good news for American jobs, 
American clean energy transition, and we are strengthening our economic 
bonds with a crucial ally, a vital ally, in South America.
  I just had the opportunity to meet with the representatives of the 
Chilean Government--the Foreign Minister, the Ambassador.
  I want to thank you for being here on this wonderful occasion.
  I want to thank my colleagues on both sides of the aisle for doing 
this--Chairman Menendez, Ranking Member Risch.
  This is a very important treaty that will serve the United States, 
Chile, and the world economy very well in the years to come.
  I yield the floor.