skip to main content
Hide All The Ads With a Yearly Membership Subscribe ▶

S. 295: Countering Economic Coercion Act of 2023

Compare this bill to another bill:

React to this bill with an emoji

(About Ads | Hide These Ads)

The text of the bill below is as of Feb 7, 2023 (Introduced).

II

118th CONGRESS

1st Session

S. 295

IN THE SENATE OF THE UNITED STATES

February 7, 2023

(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.

1.

Short title

This Act may be cited as the Countering Economic Coercion Act of 2023.

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.

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.

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.

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.

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.

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.

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.