What This Bill Does
This bill aims to decrease U.S. dependency on manufacturing from the People's Republic of China and to decrease migration caused by lost regional economic opportunities. The bill authorizes the U.S. government to support Latin American and Caribbean countries in securing their critical mineral and energy supply chains from Chinese control and influence.
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Who It Affects
- The Secretary of State and the State Department
- The United States International Development Finance Corporation
- Latin American and Caribbean countries
- The President of the United States
- U.S. Agency for International Development (USAID)
- Other U.S. federal agencies involved in foreign policy and development finance
- U.S. public and private sector investors
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Key Provisions
- The Secretary of State must prioritize and expedite efforts to support Latin American and Caribbean countries in securing their critical mineral and energy supply chains from Chinese control (Sec. 3)
- The United States International Development Finance Corporation shall provide assistance to support these countries' efforts and carry out the bill's policies (Sec. 4)
- The President may negotiate nuclear reactor sales agreements with Latin American and Caribbean countries if the sale does not threaten U.S. national security and the country meets three conditions: taking steps to reduce illegal migration, reducing economic dependence on China, and allowing Taiwan to maintain a commercial office (Sec. 5)
- The United States International Development Finance Corporation must develop and submit a plan within 180 days of the bill becoming law to streamline assistance and expedite the approval process (Sec. 4(d))
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What Changes
If this bill becomes law, the State Department and other U.S. agencies must prioritize supporting Latin American and Caribbean countries in developing their own mineral and energy resources instead of relying on Chinese sources. The U.S. International Development Finance Corporation gains the ability to provide financial assistance to countries with upper-middle-income or high-income economies in the region. The President gains authority to negotiate nuclear reactor sales with these countries under specific conditions. A new streamlined assistance plan must be created and submitted to Congress within 180 days.
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Important Definitions
- "Latin American or Caribbean country" means a country in the Caribbean Sea, South America, Central America, or Mexico, but does not include Cuba or Venezuela unless the Secretary of State certifies they meet specific conditions (Sec. 6)
- Cuba and Venezuela may be included only if their governments hold free and fair elections, respect human rights, move toward free market economies, allow humanitarian assistance, free unlawfully detained U.S. citizens and political prisoners, and expel foreign adversary security services (Sec. 6(b))
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Effective Date
Not specified in bill text
I
118TH CONGRESS
1ST SESSION H. R. 1704
To decrease dependency on People’s Republic of China manufacturing and
decrease migration due to lost regional economic opportunities.
IN THE HOUSE OF REPRESENTATIVES
MARCH 22, 2023
Mr. GREEN of Tennessee (for himself and Mr. MCCAUL) introduced the
following bill; which was referred to the Committee on Foreign Affairs
A BILL
To decrease dependency on People’s Republic of China manu-
facturing and decrease migration due to lost regional
economic opportunities.
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 ‘‘Latin America and
4
Caribbean Nearshoring Act’’.
5
SEC. 2. SENSE OF CONGRESS; STATEMENT OF POLICY.
6
(a) SENSE OF CONGRESS.—It is the sense of Con-
7
gress that the United States has economic and national
8
security interests in securing the critical mineral and en-
9
ergy supply chains of Latin American and Caribbean
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•HR 1704 IH
countries from control and influence by the People’s Re-
1
public of China.
2
(b) STATEMENT OF POLICY.—It is the policy of the
3
United States to—
4
(1) advance United States foreign policy and
5
development goals by assisting Latin American and
6
Caribbean countries to reduce their dependence on
7
critical mineral and energy supply chains controlled
8
or influenced by the People’s Republic of China;
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(2) promote private sector-led long-term eco-
10
nomic development, economic competitiveness and
11
promoting good governance, human rights, and the
12
rule of law in Latin American and Caribbean coun-
13
tries, particularly in the areas of investment, sus-
14
tainable development, commercial relations, anti-cor-
15
ruption activities, and infrastructure projects;
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(3) encourage United States public and private
17
sector investment in energy infrastructure projects
18
of such countries to bridge the gap between energy
19
security requirements and commercial demand in a
20
way that is consistent with the region’s absorptive
21
capacity;
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(4) encourage United States public and private
23
sector investment in critical mineral mining and re-
24
fining of such countries; and
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•HR 1704 IH
(5) help facilitate the export of United States
1
energy technology and expertise to global markets.
2
SEC. 3. EFFORTS OF THE DEPARTMENT OF STATE AND RE-
3
LATED AGENCIES.
4
The Secretary of State, in coordination with the
5
heads of United States agencies that operate under the
6
foreign policy guidance of the Secretary of State, shall,
7
as appropriate, prioritize and expedite the efforts of the
8
Department of State and such agencies—
9
(1) to support efforts of Latin American and
10
Caribbean countries to secure their critical mineral
11
and energy supply chains from control and influence
12
by the People’s Republic of China; and
13
(2) to otherwise carry out the policy described
14
in section 2(b).
15
SEC. 4. ASSISTANCE FROM THE UNITED STATES INTER-
16
NATIONAL
DEVELOPMENT
FINANCE
COR-
17
PORATION.
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(a) IN GENERAL.—The United States International
19
Development Finance Corporation, in coordination with
20
the Federal agencies and officials described in subsection
21
(b), shall provide assistance under section 1421 of the
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Better Utilization of Investments Leading to Development
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Act of 2018 (22 U.S.C. 9621) for each fiscal year begin-
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ning after the date of the enactment of this Act—
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•HR 1704 IH
(1) to support efforts of Latin American and
1
Caribbean countries to secure their critical mineral
2
and energy supply chains from control and influence
3
by the People’s Republic of China; and
4
(2) to otherwise carry out the policy described
5
in section 2(b).
6
(b) FEDERAL
AGENCIES
AND
OFFICIALS
DE-
7
SCRIBED.—The Federal agencies and officials described in
8
this subsection include—
9
(1) the United States Trade and Development
10
Agency, the Export-Import Bank of the United
11
States, the Millenium Challenge Corporation, the
12
United States Army Corps of Engineers, and the
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United States Agency for International Develop-
14
ment; and
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(2) the United States Executive Directors of
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relevant international financial institutions, includ-
17
ing the World Bank Group, the Inter-American De-
18
velopment Bank, and the International Monetary
19
Fund.
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(c) EXCEPTIONS.—In providing assistance described
21
in subsection (a)—
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(1) the United States International Develop-
23
ment Finance Corporation may provide support for
24
projects in Latin American and Caribbean countries
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•HR 1704 IH
with upper-middle-income economies or high-income
1
economies (as those terms are defined by the Inter-
2
national Bank for Reconstruction and Development
3
and the International Development Association (col-
4
lectively referred to as the ‘‘World Bank’’)); and
5
(2) the restriction under section 1412(c)(2) of
6
the Better Utilization of Investments Leading to De-
7
velopment Act of 2018 (22 U.S.C. 9612(c)(2)) shall
8
not apply.
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(d) PLAN.—Not later than 180 days after the date
10
of the enactment of this Act, the United States Inter-
11
national Development Finance Corporation shall develop
12
and submit to the Committee on Foreign Affairs of the
13
House of Representatives and the Committee on Foreign
14
Relations of the Senate a plan to streamline the provision
15
of assistance described in subsection (a), including to ex-
16
pedite the approval process for the provision of such as-
17
sistance.
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SEC. 5. AGREEMENTS FOR COOPERATION PURSUANT TO
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SECTION 123 OF THE ATOMIC ENERGY ACT
20
OF 1954.
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(a) IN GENERAL.—The President is authorized to
22
take action to initiate negotiations with any Latin Amer-
23
ican or Caribbean country to obtain an agreement for co-
24
operation pursuant to section 123 of the Atomic Energy
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Act of 1954 (42 U.S.C. 2153) to approve the sale of nu-
1
clear reactors to such country but only if—
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(1) the President determines that such sale will
3
not threaten the national security of the United
4
States; and
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(2) the country meets the conditions described
6
in paragraphs (1), (2), and (3) of subsection (c).
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(b) TECHNICAL ASSISTANCE AND EXPERTISE.—The
8
Administrator of the United States Agency for Inter-
9
national Development, in consultation with the Secretary
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of Energy and the United States International Develop-
11
ment Finance Corporation, may provide technical assist-
12
ance and expertise in electrical grid and energy efficiency
13
improvements related to sales under subsection (a), as ap-
14
propriate.
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(c) CONDITIONS DESCRIBED.—The conditions de-
16
scribed in this subsection are the following:
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(1) The country is taking steps to reduce mi-
18
gration in violation of the Immigration and Nation-
19
ality Act.
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(2) The country is taking steps to reduce eco-
21
nomic dependence on the People’s Republic of
22
China.
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(3) The country allows Taiwan to establish and
24
maintain a commercial office in the country.
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•HR 1704 IH
SEC. 6. LATIN AMERICAN OR CARIBBEAN COUNTRY DE-
1
FINED.
2
(a) IN GENERAL.—In this Act, the term ‘‘Latin
3
American or Caribbean country’’—
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(1) means—
5
(A) a country in the Caribbean Sea, South
6
America, or Central America; and
7
(B) Mexico; and
8
(2) except as provided in subsection (b), does
9
not include Cuba or Venezuela.
10
(b) EXCEPTION.—The term ‘‘Latin American or Car-
11
ibbean country’’ shall include Cuba or Venezuela if the
12
Secretary of State determines and certifies to Congress
13
that—
14
(1) the government of such country—
15
(A) has held free and fair presidential and
16
legislative elections, as determined by inde-
17
pendent international observers, and subsequent
18
elections are scheduled;
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(B) respects and upholds human rights;
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(C) is taking significant steps to privatize
21
its economy and institute a free market;
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(D) permits the international community
23
to provide humanitarian, governance, and eco-
24
nomic development assistance;
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•HR 1704 IH
(E) has freed all unlawfully detained
1
United States citizens, legal permanent resi-
2
dents, and political prisoners; and
3
(F) has expelled all security services from
4
foreign adversaries from the country; and
5
(2) the prior authorities of such country have
6
renounced their illegitimate claim to power.
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Æ
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