[Congressional Record Volume 169, Number 119 (Wednesday, July 12, 2023)]
[Senate]
[Pages S2400-S2403]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
SA 232. Mr. YOUNG (for himself and Mr. Coons) submitted an amendment
intended to be proposed by him to the bill S. 2226, to authorize
appropriations for fiscal year 2024 for military activities of the
Department of Defense, for military construction, and for defense
activities of the Department of Energy, to prescribe military personnel
strengths for such fiscal year, and for other purposes; which was
ordered to lie on the table; as follows:
At the appropriate place, insert the following:
DIVISION F--COUNTERING ECONOMIC COERCION ACT OF 2023
SEC. 6001. SHORT TITLE.
This title may be cited as the ``Countering Economic
Coercion Act of 2023''.
SEC. 6002. 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. 6003. DEFINITIONS.
In this title:
(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
subsection (a)(1) or (b) of section 6005--
(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 6005(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.
[[Page S2401]]
(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. 6004. 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 6005(a) to support or assist the foreign
trading partner; or
(B) in section 6005(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 6005(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 6005(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 6005(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. 6005. 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 6007, 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. 6006. 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
6005 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. 6007. CONDITIONS WITH RESPECT TO TARIFF AUTHORITY.
(a) Limitations on Tariff Authority.--The authority
described in section 6005(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 6005, 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
[[Page S2402]]
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. 6008. PROCESS FOR JOINT RESOLUTIONS OF APPROVAL OR
DISAPPROVAL.
(a) Definitions.--In this division:
(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
6005 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 6005 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 6004(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
6004(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 6004(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 6004(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 6004(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 6004(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 6007, 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 6005 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 6005 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 6004(a)(4) or submitted to the
appropriate congressional committees in accordance with
section 6004(b)(2)(A) or a notice of intent is submitted to
the appropriate congressional committees in accordance with
section 6004(b)(2)(B) or section 6007(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 6004(a)(4) or submitted
to the appropriate congressional committees in accordance
with section 6004(b)(2)(A) or a notice of intent is submitted
to the appropriate congressional committees in accordance
with section 6004(b)(2)(B) or section 6007(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.
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(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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