Trade Security Act of 2019

II 116TH CONGRESS 1ST SESSION S. 365 To amend section 232 of the Trade Expansion Act of 1962 to require the Secretary of Defense to initiate investigations and to provide for congressional disapproval of certain actions, and for other purposes. IN THE SENATE OF THE UNITED STATES FEBRUARY 6, 2019 Mr. PORTMAN (for himself, Mr. JONES, Ms. ERNST, Mr. ALEXANDER, Mrs. FEINSTEIN, Mrs. FISCHER, Ms. SINEMA, Mr. YOUNG, and Mr. WICKER) introduced the following bill; which was read twice and referred to the Committee on Finance A BILL To amend section 232 of the Trade Expansion Act of 1962 to require the Secretary of Defense to initiate investiga- tions and to provide for congressional disapproval of certain actions, and for other purposes. 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 ‘‘Trade Security Act 4 of 2019’’. 5 VerDate Sep 11 2014 20:30 Feb 14, 2019 Jkt 089200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S365.IS S365 pamtmann on DSKBFK8HB2PROD with BILLS 2 •S 365 IS SEC. 2. INVESTIGATIONS TO DETERMINE EFFECTS ON NA- 1 TIONAL SECURITY OF IMPORTS OF ARTICLES 2 AND CONGRESSIONAL REVIEW OF PRESI- 3 DENTIAL ACTIONS. 4 (a) INVESTIGATIONS AND DETERMINATIONS BY SEC- 5 RETARY OF DEFENSE.—Section 232 of the Trade Expan- 6 sion Act of 1962 (19 U.S.C. 1862) is amended— 7 (1) in subsection (b)— 8 (A) in paragraph (1)— 9 (i) in subparagraph (A), by striking 10 ‘‘Secretary of Commerce’’ and all that fol- 11 lows through ‘‘ ‘Secretary’)’’ and inserting 12 ‘‘Secretary of Defense’’; and 13 (ii) in subparagraph (B)— 14 (I) by striking ‘‘Secretary shall’’ 15 and inserting ‘‘Secretary of Defense 16 shall’’; and 17 (II) by striking ‘‘Secretary of De- 18 fense of’’ and inserting ‘‘Secretary of 19 Commerce of’’; 20 (B) in paragraph (2)— 21 (i) by striking subparagraph (B); 22 (ii) in the matter preceding clause 23 (i)— 24 (I) by striking ‘‘(A) In’’ and in- 25 serting ‘‘In’’; and 26 VerDate Sep 11 2014 20:30 Feb 14, 2019 Jkt 089200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S365.IS S365 pamtmann on DSKBFK8HB2PROD with BILLS 3 •S 365 IS (II) by striking ‘‘Secretary’’ and 1 inserting ‘‘Secretary of Defense’’; and 2 (iii) by striking clauses (i) through 3 (iii) and inserting the following: 4 ‘‘(A) consult with the Secretary of Commerce 5 regarding the methodological and policy questions 6 raised in any investigation initiated under paragraph 7 (1); 8 ‘‘(B) prepare an assessment of the defense re- 9 quirements and national security impact of any arti- 10 cle that is the subject of an investigation, which 11 shall focus on— 12 ‘‘(i) the impact of the importation of the 13 article on military readiness and critical infra- 14 structure; and 15 ‘‘(ii) the need for a reliable supply of the 16 article to protect national security; 17 ‘‘(C) seek information and advice from the Sec- 18 retary of Commerce; 19 ‘‘(D) consult with appropriate officers of the 20 United States; 21 ‘‘(E) consult with members of the Committee 22 on Finance of the Senate and members of the Com- 23 mittee on Ways and Means of the House of Rep- 24 resentatives; and 25 VerDate Sep 11 2014 20:30 Feb 14, 2019 Jkt 089200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S365.IS S365 pamtmann on DSKBFK8HB2PROD with BILLS 4 •S 365 IS ‘‘(F) hold public hearings, co-chaired with the 1 Department of Commerce, or otherwise afford inter- 2 ested parties an opportunity to present information 3 and advice relevant to such investigation.’’; 4 (C) in paragraph (3)— 5 (i) by redesignating subparagraph (B) 6 as subparagraph (D); 7 (ii) by striking subparagraph (A) and 8 inserting the following: 9 ‘‘(A) Not later than 200 days after the date on which 10 the Secretary of Defense initiates an investigation under 11 paragraph (1) with respect to an article, the Secretary of 12 Defense shall submit to the President a report on the find- 13 ings of such investigation with respect to the effect of the 14 importation of such article in such quantities or under 15 such circumstances on the national security of the United 16 States. 17 ‘‘(B) If the report described in subparagraph (A) in- 18 cludes an affirmative finding that the importation of an 19 article in such quantities or under such circumstances 20 threatens to impair the national security, the President 21 may direct the Secretary of Commerce to devise rec- 22 ommendations to address such threat. 23 ‘‘(C) Not later than 100 days after receiving from 24 the President under subparagraph (B) a direction to de- 25 VerDate Sep 11 2014 20:30 Feb 14, 2019 Jkt 089200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\S365.IS S365 pamtmann on DSKBFK8HB2PROD with BILLS 5 •S 365 IS vise recommendations with respect to an article, the Sec- 1 retary of Commerce, in consultation with the United 2 States Trade Representative, the Secretary of Defense, 3 members of the Committee on Finance of the Senate, and 4 members of the Committee on Ways and Means of the 5 House of Representatives, shall submit to the President 6 a report that includes— 7 ‘‘(i) recommendations for action or inaction 8 under this section with respect to the article; and 9 ‘‘(ii) the findings of the Secretary of Commerce 10 with respect to the investigation by the Secretary of 11 Defense under paragraph (1).’’; and 12 (iii) in subparagraph (D), as redesig- 13 nated by subparagraph (C)— 14 (I) by striking ‘‘Secretary’’ and 15 inserting ‘‘Secretary of Defense’’; and 16 (II) by inserting ‘‘or the report 17 submitted by the Secretary of Com- 18 merce under subparagraph (C)’’ after 19 ‘‘subparagraph (A)’’; and 20 (D) in paragraph (4), by inserting ‘‘of De- 21 fense, in consultation with the Secretary of 22 Commerce,’’ after ‘‘The Secretary’’; 23 (2) in subsection (c)(1), by striking subpara- 24 graph (A) and inserting the following: 25 VerDate Sep 11 2014 20:30 Feb 14, 2019 Jkt 089200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\S365.IS S365 pamtmann on DSKBFK8HB2PROD with BILLS 6 •S 365 IS ‘‘(A) Not later than 60 days after receiving rec- 1 ommendations submitted under subsection (b)(3)(C)(i) 2 with respect to an article, the President shall— 3 ‘‘(i) decide whether to take action based on 4 such recommendations; and 5 ‘‘(ii) if the President decides to take action 6 under clause (i), determine the nature and duration 7 of the action to be taken to adjust the imports of the 8 article and its derivatives so that such imports will 9 not threaten to impair the national security.’’; 10 (3) by redesignating the second subsection (d) 11 as subsection (e); 12 (4) in subsection (d)— 13 (A) by striking ‘‘the Secretary and the 14 President’’ each place it appears and inserting 15 ‘‘the Secretary of Defense, the Secretary of 16 Commerce, and the President’’; and 17 (B) by inserting ‘‘, the production of which 18 is needed for national defense requirements and 19 critical infrastructure in the United States’’ 20 after ‘‘welfare of individual domestic indus- 21 tries’’; and 22 (5) in subsection (e)(1), as redesignated by 23 paragraph (3), by striking ‘‘Secretary’’ and inserting 24 ‘‘Secretary of Defense’’. 25 VerDate Sep 11 2014 20:30 Feb 14, 2019 Jkt 089200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\S365.IS S365 pamtmann on DSKBFK8HB2PROD with BILLS 7 •S 365 IS (b) CONGRESSIONAL DISAPPROVAL OF PRESI- 1 DENTIAL ACTION.—Section 232(f) of the Trade Expan- 2 sion Act of 1962 (19 U.S.C. 1862(f)) is amended— 3 (1) in paragraph (1), by striking ‘‘of petroleum 4 or petroleum products’’; and 5 (2) in paragraph (2)(B)— 6 (A) by striking ‘‘petroleum imports’’ and 7 inserting ‘‘imports’’; and 8 (B) by striking ‘‘of petroleum or petroleum 9 products’’. 10 (c) APPLICABILITY.— 11 (1) IN GENERAL.—Except as provided in para- 12 graph (2), subsection (f) of section 232 of the Trade 13 Expansion Act of 1962 (19 U.S.C. 1862), as amend- 14 ed by subsection (b), shall apply to adjustments of 15 imports under that section on or after July 1, 2018. 16 (2) EXCEPTION.—Subsection (f) of section 232 17 of the Trade Expansion Act of 1962 (19 U.S.C. 18 1862), as amended by subsection (b), shall not apply 19 to the presidential actions taken under that section 20 on March 8, 2018, relating to the adjustment of im- 21 ports of steel and aluminum, or any subsequent ac- 22 tions (including proclamations, Executive orders, or 23 VerDate Sep 11 2014 20:30 Feb 14, 2019 Jkt 089200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\S365.IS S365 pamtmann on DSKBFK8HB2PROD with BILLS 8 •S 365 IS other Executive acts) relating to those presidential 1 actions. 2 Æ VerDate Sep 11 2014 20:30 Feb 14, 2019 Jkt 089200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6301 E:\BILLS\S365.IS S365 pamtmann on DSKBFK8HB2PROD with BILLS