What This Bill Does
This bill allows the President to help foreign countries that are being economically harmed by hostile nations. The President can reduce tariffs (taxes on imported goods), provide foreign aid, speed up export licenses, and take other actions to support affected trading partners. The bill also lets the President punish the hostile nations through increased tariffs.
Who It Affects
The President and the State Department; foreign countries being economically pressured; Congress, particularly the Foreign Relations, Foreign Affairs, Finance, Ways and Means, Banking and Financial Services committees; United States businesses and workers; and federal agencies like the Commerce Department and the Trade Representative's office.
Key Provisions
• The President can reduce or eliminate tariffs on goods from a foreign trading partner facing economic coercion by a hostile nation, or modify tariff-rate quotas (Sec. 5(a)(1))
• The President can request money for foreign aid to help affected trading partners (Sec. 5(a)(2))
• The President can speed up decisions on export licenses for controlled items to affected trading partners (Sec. 5(a)(3))
• The President can increase tariffs on goods imported from the hostile nation doing the economic coercing (Sec. 5(b)(1))
• The President must tell Congress at least 30 days before taking action, and Congress can disapprove the action with a joint resolution (a type of formal vote) (Sec. 4(a)(3), Sec. 7(b))
What Changes
If this bill becomes law, the President gains new legal authority to respond to economic pressure from hostile nations. Currently, the President would need existing laws to take these actions. The bill creates a specific process where the President determines if economic coercion is happening, notifies Congress, and can then reduce tariffs, provide aid, or speed up exports within 30 days unless Congress votes to block the action.
Important Definitions
• Economic coercion: Actions taken by a hostile nation to unreasonably block or control trade, foreign aid, investment, or commerce in an unfair or unclear way, with the goal of causing economic harm to achieve political goals or change how another country acts (Sec. 3(2))
• Foreign adversary: The bill references the definition in a different law about communications networks (Sec. 3(4))
• Foreign trading partner: A country that trades with the United States (Sec. 3(5))
Effective Date
Not specified in bill text
II
118TH CONGRESS
1ST SESSION
S. 295
To grant certain authorities to the President to combat economic coercion
by foreign adversaries, and for other purposes.
IN THE SENATE OF THE UNITED STATES
FEBRUARY 7, 2023
Mr. YOUNG (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 eco-
nomic coercion by foreign adversaries, and for other pur-
poses.
Be it enacted by the Senate and House of Representa-
1
tives of the United States of America in Congress assembled,
2
SECTION 1. SHORT TITLE.
3
This Act may be cited as the ‘‘Countering Economic
4
Coercion Act of 2023’’.
5
SEC. 2. SENSE OF CONGRESS.
6
The following is the sense of Congress:
7
(1) Foreign adversaries are increasingly using
8
economic coercion to pressure, punish, and influence
9
United States allies and partners.
10
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(2) Economic coercion causes economic harm to
1
United States allies and partners and creates malign
2
influence on the sovereign political actions of such
3
allies and partners.
4
(3) Economic coercion can threaten the essen-
5
tial security of the United States and its allies.
6
(4) Economic coercion is often characterized
7
by—
8
(A) arbitrary, abusive, and discriminatory
9
actions that seek to interfere with sovereign ac-
10
tions, violate international trade rules, and run
11
counter to the rules-based international order;
12
(B) capricious, pre-textual, and non-trans-
13
parent actions taken without due process af-
14
forded;
15
(C) intimidation or threats of punitive ac-
16
tions; and
17
(D) informal actions that take place with-
18
out explicit government action.
19
(5) Existing mechanisms for trade dispute reso-
20
lution and international arbitration are inadequate
21
for responding to economic coercion in a timely and
22
effective manner as foreign adversaries exploit plau-
23
sible deniability and lengthy processes to evade ac-
24
countability.
25
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(6) The United States should provide meaning-
1
ful economic and political support to foreign trading
2
partners affected by economic coercion.
3
(7) Supporting foreign trading partners af-
4
fected by economic coercion can lead to opportunities
5
for United States businesses, investors, and workers
6
to reach new markets and customers.
7
(8) Responding to economic coercion will be
8
most effective when the United States provides relief
9
to affected foreign trading partners in coordination
10
with allies and like-minded countries.
11
(9) Such coordination will further demonstrate
12
broad resolve against economic coercion.
13
SEC. 3. DEFINITIONS.
14
In this Act:
15
(1) APPROPRIATE
CONGRESSIONAL
COMMIT-
16
TEES.—The term ‘‘appropriate congressional com-
17
mittees’’—
18
(A) means—
19
(i) the Committee on Foreign Rela-
20
tions of the Senate; and
21
(ii) the Committee on Foreign Affairs
22
of the House of Representatives; and
23
(B) includes—
24
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•S 295 IS
(i) with respect to the exercise of any
1
authority under section 5(a)(1) or 5(b)—
2
(I) the Committee on Finance of
3
the Senate; and
4
(II) the Committee on Ways and
5
Means of the House of Representa-
6
tives; and
7
(ii) with respect to the exercise of any
8
authority under paragraph (6) or (8) of
9
section 5(a)—
10
(I) the Committee on Banking,
11
Housing, and Urban Affairs of the
12
Senate; and
13
(II) the Committee on Financial
14
Services of the House of Representa-
15
tives.
16
(2) ECONOMIC
COERCION.—The term ‘‘eco-
17
nomic coercion’’ means actions, practices, or threats
18
undertaken by a foreign adversary to unreasonably
19
restrain, obstruct, or manipulate trade, foreign aid,
20
investment, or commerce in an arbitrary, capricious,
21
or non-transparent manner with the intention to
22
cause economic harm to achieve strategic political
23
objectives or influence sovereign political actions.
24
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•S 295 IS
(3) EXPORT; EXPORT ADMINISTRATION REGU-
1
LATIONS; IN-COUNTRY TRANSFER; REEXPORT.—The
2
terms ‘‘export’’, ‘‘Export Administration Regula-
3
tions’’, ‘‘in-country transfer’’, and ‘‘reexport’’ have
4
the meanings given those terms in section 1742 of
5
the Export Control Reform Act of 2018 (50 U.S.C.
6
4801).
7
(4) FOREIGN ADVERSARY.—The term ‘‘foreign
8
adversary’’ has the meaning given that term in sec-
9
tion 8(c)(2) of the Secure and Trusted Communica-
10
tions Networks Act of 2019 (47 U.S.C. 1607(c)(2)).
11
(5) FOREIGN
TRADING
PARTNER.—The term
12
‘‘foreign trading partner’’ means a jurisdiction that
13
is a trading partner of the United States.
14
SEC. 4. DETERMINATION OF ECONOMIC COERCION.
15
(a) PRESIDENTIAL DETERMINATION.—
16
(1) IN GENERAL.—If the President determines
17
that a foreign trading partner is subject to economic
18
coercion by a foreign adversary, the President may
19
exercise, in a manner proportionate to the economic
20
coercion, any authority described—
21
(A) in section 5(a) to support or assist the
22
foreign trading partner; or
23
(B) in section 5(b) to penalize the foreign
24
adversary.
25
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(2) INFORMATION; HEARINGS.—To inform any
1
determination or exercise of authority under para-
2
graph (1), the President shall—
3
(A) obtain the written opinion and analysis
4
of the Secretary of State, the Secretary of Com-
5
merce, the Secretary of the Treasury, the
6
United States Trade Representative, and the
7
heads of other Federal agencies, as the Presi-
8
dent considers appropriate;
9
(B) seek information and advice from and
10
consult with other relevant officers of the
11
United States; and
12
(C) afford other interested parties an op-
13
portunity to present relevant information and
14
advice.
15
(3) CONSULTATION
WITH
CONGRESS.—The
16
President shall consult with the appropriate congres-
17
sional committees—
18
(A) not earlier than 30 days and not later
19
than 10 days before exercising any authority
20
under paragraph (1); and
21
(B) not less frequently than once every
22
180 days for the duration of the exercise of
23
such authority.
24
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•S 295 IS
(4) NOTICE.—Not later than 30 days after the
1
date that the President determines that a foreign
2
trading partner is subject to economic coercion or
3
exercises any authority under paragraph (1), the
4
President shall publish in the Federal Register—
5
(A) a notice of the determination or exer-
6
cise of authority; and
7
(B) a description of the economic coercion
8
that the foreign adversary is applying to the
9
foreign trading partner and other circumstances
10
that led to such determination or exercise of au-
11
thority.
12
(b) EXPEDITED DETERMINATION.—
13
(1) IN GENERAL.—If the Secretary of State de-
14
termines that a foreign trading partner is subject to
15
economic coercion by a foreign adversary, the Sec-
16
retary of State or the head of the relevant Federal
17
agency may exercise any authority described in para-
18
graphs (2) through (7) of section 5(a).
19
(2) NOTICES.—
20
(A) IN GENERAL.—Not later than 10 days
21
after a determination under paragraph (1), the
22
Secretary of State shall submit to the appro-
23
priate congressional committees a notice of such
24
determination.
25
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•S 295 IS
(B) EXERCISE OF AUTHORITY.—Not later
1
than 10 days after the exercise of any authority
2
described in paragraphs (2) through (7) of sec-
3
tion 5(a) that relies on the determination for
4
which the Secretary of State submitted notice
5
under subparagraph (A), the Secretary of State
6
or the head of the relevant Federal agency rely-
7
ing on such determination shall submit to the
8
appropriate congressional committees a notice
9
of intent to exercise such authority, but not
10
more frequently than once every 90 days.
11
(c) REVOCATION OF DETERMINATION.—
12
(1) IN GENERAL.—Any determination made by
13
the President under subsection (a) or the Secretary
14
of State under subsection (b) shall be revoked on the
15
earliest of—
16
(A) the date that is 2 years after the date
17
of such determination;
18
(B) the date of the enactment of a joint
19
resolution of disapproval revoking the deter-
20
mination; or
21
(C) the date on which the President issues
22
a proclamation revoking the determination.
23
(2) TERMINATION OF AUTHORITIES.—Any au-
24
thority described in section 5(a) exercised pursuant
25
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•S 295 IS
to a determination that has been revoked under
1
paragraph (1) shall cease to be exercised on the date
2
of such revocation, except that such revocation shall
3
not affect—
4
(A) any action taken or proceeding pend-
5
ing not finally concluded or determined on such
6
date; or
7
(B) any rights or duties that matured or
8
penalties that were incurred prior to such date.
9
SEC. 5. AUTHORITIES TO ASSIST FOREIGN TRADING PART-
10
NERS AFFECTED BY ECONOMIC COERCION.
11
(a) AUTHORITIES
WITH
RESPECT
TO
FOREIGN
12
TRADING PARTNERS.—The authorities described in this
13
subsection are the following:
14
(1) Subject to section 7, with respect to goods
15
imported into the United States from a foreign trad-
16
ing partner subject to economic coercion by a foreign
17
adversary—
18
(A) the reduction or elimination of duties;
19
or
20
(B) the modification of tariff-rate quotas.
21
(2) Requesting appropriations for foreign aid to
22
the foreign trading partner.
23
(3) Expedited decisions with respect to the
24
issuance of licenses for the export or reexport to, or
25
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•S 295 IS
in-country transfer in, the foreign trading partner of
1
items subject to controls under the Export Adminis-
2
tration Regulations, consistent with the Export Con-
3
trol Reform Act of 2018 (50 U.S.C. 4801 et seq.).
4
(4) Expedited regulatory processes related to
5
the importation of goods and services into the
6
United States from the foreign trading partner.
7
(5) Requesting the necessary authority and ap-
8
propriations for sovereign loan guarantees to the for-
9
eign trading partner.
10
(6) The waiver of policy requirements (other
11
than policy requirements mandated by an Act of
12
Congress, including the policies and procedures es-
13
tablished pursuant to section 11 of the Export-Im-
14
port Bank Act of 1945 (12 U.S.C. 635i–5)) as nec-
15
essary to facilitate the provision of financing to sup-
16
port exports to the foreign trading partner.
17
(7) Requesting appropriations for loan loss re-
18
serves to facilitate the provision of financing to sup-
19
port United States exports to the foreign trading
20
partner.
21
(8) The exemption of financing provided to sup-
22
port United States exports to the foreign trading
23
partner from section 8(g)(1) of the Export-Import
24
Bank Act of 1945 (12 U.S.C. 635g(g)(1)).
25
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•S 295 IS
(b) AUTHORITIES WITH RESPECT TO FOREIGN AD-
1
VERSARIES.—With respect to goods imported into the
2
United States from a foreign adversary engaged in eco-
3
nomic coercion of a foreign trading partner, the authori-
4
ties described in this subsection are the following:
5
(1) The increase in duties.
6
(2) The modification of tariff-rate quotas.
7
SEC. 6. COORDINATION WITH ALLIES AND PARTNERS.
8
(a) COORDINATION BY PRESIDENT.—After a deter-
9
mination by the President that a foreign trading partner
10
is subject to economic coercion by a foreign adversary, the
11
President shall endeavor to coordinate—
12
(1) the exercise of the authorities described in
13
section 5 with the exercise of relevant authorities by
14
allies and partners in order to broaden economic
15
support to the foreign trading partner affected by
16
economic coercion; and
17
(2) with allies and partners to issue joint con-
18
demnation of the actions of the foreign adversary
19
and support for the foreign trading partner.
20
(b) COORDINATION BY SECRETARY.—The Secretary
21
of State, in coordination with the heads of the relevant
22
agencies, shall endeavor—
23
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•S 295 IS
(1) to encourage allies and partners to identify
1
or create mechanisms and authorities necessary to
2
facilitate the coordination under subsection (a)(1);
3
(2) to coordinate with allies and partners to in-
4
crease opposition to economic coercion in the inter-
5
national community;
6
(3) to coordinate with allies and partners to
7
deter the use of economic coercion by foreign adver-
8
saries; and
9
(4) to engage with foreign trading partners to
10
gather information about possible instances of eco-
11
nomic coercion and share such information with the
12
appropriate congressional committees.
13
SEC. 7. CONDITIONS WITH RESPECT TO TARIFF AUTHOR-
14
ITY.
15
(a) LIMITATIONS ON TARIFF AUTHORITY.—The au-
16
thority described in section 5(a)(1)—
17
(1) does not include the authority to reduce or
18
eliminate antidumping or countervailing duties im-
19
posed under title VII of the Tariff Act of 1930 (19
20
U.S.C. 1671 et seq.);
21
(2) may only apply to an article if—
22
(A) such article is—
23
(i) designated by the President as an
24
eligible article for purposes of the General-
25
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•S 295 IS
ized System of Preferences under section
1
503 of the Trade Act of 1974 (19 U.S.C.
2
2463); and
3
(ii) imported direct
[Text truncated for display. Full text available on Congress.gov.]