A bill to implement the Agreement between the United States of America, the United Mexican States, and Canada attached as an Annex to the Protocol Replacing the North American Free Trade Agreement.

II 116TH CONGRESS 1ST SESSION S. 3052 To implement the Agreement between the United States of America, the United Mexican States, and Canada attached as an Annex to the Protocol Replacing the North American Free Trade Agreement. IN THE SENATE OF THE UNITED STATES DECEMBER 16, 2019 Mr. GRASSLEY (for himself, Mr. WYDEN, and Mr. MCCONNELL) (by request) introduced the following bill; which was read twice and referred to the Committee on Finance A BILL To implement the Agreement between the United States of America, the United Mexican States, and Canada at- tached as an Annex to the Protocol Replacing the North American Free Trade Agreement. 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; TABLE OF CONTENTS. 3 (a) SHORT TITLE.—This Act may be cited as the 4 ‘‘United States-Mexico-Canada Agreement Implementa- 5 tion Act’’. 6 (b) TABLE OF CONTENTS.—The table of contents for 7 this Act is as follows: 8 VerDate Sep 11 2014 21:06 Dec 19, 2019 Jkt 099200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S3052.IS S3052 pamtmann on DSKBC07HB2PROD with BILLS 2 •S 3052 IS Sec. 1. Short title; table of contents. Sec. 2. Purpose. Sec. 3. Definitions. TITLE I—APPROVAL OF, AND GENERAL PROVISIONS RELATING TO, THE USMCA Sec. 101. Approval and entry into force of the USMCA. Sec. 102. Relationship of the USMCA to United States and State law. Sec. 103. Implementing actions in anticipation of entry into force; initial regu- lations; tariff proclamation authority. Sec. 104. Consultation and layover provisions for, and effective date of, pro- claimed actions. Sec. 105. Administration of dispute settlement proceedings. Sec. 106. Trade Representative authority. Sec. 107. Effective date. TITLE II—CUSTOMS PROVISIONS Sec. 201. Exclusion of originating goods of USMCA countries from special ag- riculture safeguard authority. Sec. 202. Rules of origin. Sec. 202A. Special rules for automotive goods. Sec. 203. Merchandise processing fee. Sec. 204. Disclosure of incorrect information; false certifications of origin; de- nial of preferential tariff treatment. Sec. 205. Reliquidation of entries. Sec. 206. Recordkeeping requirements. Sec. 207. Actions regarding verification of claims under the USMCA. Sec. 208. Drawback [reserved]. Sec. 209. Other amendments to the Tariff Act of 1930. Sec. 210. Regulations. TITLE III—APPLICATION OF USMCA TO SECTORS AND SERVICES Subtitle A—Relief From Injury Caused by Import Competition [reserved] Subtitle B—Temporary Entry of Business Persons [reserved] Subtitle C—United States-Mexico Cross-border Long-haul Trucking Services Sec. 321. Definitions. Sec. 322. Investigations and determinations by Commission. Sec. 323. Commission recommendations and report. Sec. 324. Action by President with respect to affirmative determination. Sec. 325. Confidential business information. Sec. 326. Conforming amendments. Sec. 327. Survey of operating authorities. TITLE IV—ANTIDUMPING AND COUNTERVAILING DUTIES Subtitle A—Preventing Duty Evasion Sec. 401. Cooperation on duty evasion. Subtitle B—Dispute Settlement [reserved] Subtitle C—Conforming Amendments VerDate Sep 11 2014 21:06 Dec 19, 2019 Jkt 099200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6211 E:\BILLS\S3052.IS S3052 pamtmann on DSKBC07HB2PROD with BILLS 3 •S 3052 IS Sec. 421. Judicial review in antidumping duty and countervailing duty cases. Sec. 422. Conforming amendments to other provisions of the Tariff Act of 1930. Sec. 423. Conforming amendments to Title 28, United States Code. Subtitle D—General Provisions Sec. 431. Effect of termination of USMCA country status. Sec. 432. Effective date. TITLE V—TRANSFER PROVISIONS AND OTHER AMENDMENTS Sec. 501. Drawback. Sec. 502. Relief from injury caused by import competition. Sec. 503. Temporary entry. Sec. 504. Dispute settlement in antidumping and countervailing duty cases. Sec. 505. Government procurement. Sec. 506. Actions affecting United States cultural industries. Sec. 507. Regulatory treatment of uranium purchases. Sec. 508. Report on amendments to existing law. TITLE VI—TRANSITION TO AND EXTENSION OF USMCA Subtitle A—Transitional Provisions Sec. 601. Repeal of North American Free Trade Agreement Implementation Act. Sec. 602. Continued suspension of the United States-Canada Free-Trade Agreement. Subtitle B—Joint Reviews Regarding Extension of USMCA Sec. 611. Participation in joint reviews with Canada and Mexico regarding ex- tension of the term of the USMCA and other action regarding the USMCA. Subtitle C—Termination of USMCA Sec. 621. Termination of USMCA. TITLE VII—LABOR MONITORING AND ENFORCEMENT Sec. 701. Definitions. Subtitle A—Interagency Labor Committee for Monitoring and Enforcement Sec. 711. Interagency labor committee for monitoring and enforcement. Sec. 712. Duties. Sec. 713. Enforcement priorities. Sec. 714. Assessments. Sec. 715. Recommendation for enforcement action. Sec. 716. Petition process. Sec. 717. Hotline. Sec. 718. Reports. Sec. 719. Consultations on appointment and funding of rapid response labor panelists. Subtitle B—Mexico Labor Attache´s VerDate Sep 11 2014 21:06 Dec 19, 2019 Jkt 099200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6211 E:\BILLS\S3052.IS S3052 pamtmann on DSKBC07HB2PROD with BILLS 4 •S 3052 IS Sec. 721. Establishment. Sec. 722. Duties. Sec. 723. Status. Subtitle C—Independent Mexico Labor Expert Board Sec. 731. Establishment. Sec. 732. Membership; term. Sec. 733. Funding. Sec. 734. Reports. Subtitle D—Forced Labor Sec. 741. Forced labor enforcement task force. Sec. 742. Timeline required. Sec. 743. Reports required. Sec. 744. Duties related to Mexico. Subtitle E—Enforcement Under Rapid Response Labor Mechanism Sec. 751. Transmission of reports. Sec. 752. Suspension of liquidation. Sec. 753. Final remedies. TITLE VIII—ENVIRONMENT MONITORING AND ENFORCEMENT Sec. 801. Definitions. Subtitle A—Interagency Environment Committee for Monitoring and Enforcement Sec. 811. Establishment. Sec. 812. Assessment. Sec. 813. Monitoring actions. Sec. 814. Enforcement actions. Sec. 815. Other monitoring and enforcement actions. Sec. 816. Report to Congress. Sec. 817. Regulations. Subtitle B—Other Matters Sec. 821. Border water infrastructure improvement authority. Sec. 822. Detail of personnel to Office of the United States Trade Representa- tive. Subtitle C—North American Development Bank Sec. 831. General capital increase. Sec. 832. Policy goals. Sec. 833. Efficiencies and streamlining. Sec. 834. Performance measures. TITLE IX—USMCA SUPPLEMENTAL APPROPRIATIONS ACT, 2019 VerDate Sep 11 2014 21:06 Dec 19, 2019 Jkt 099200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6211 E:\BILLS\S3052.IS S3052 pamtmann on DSKBC07HB2PROD with BILLS 5 •S 3052 IS SEC. 2. PURPOSE. 1 The purpose of this Act is to approve and implement 2 the Agreement between the United States of America, the 3 United Mexican States, and Canada entered into under 4 the authority of section 103(b) of the Bipartisan Congres- 5 sional Trade Priorities and Accountability Act of 2015 (19 6 U.S.C. 4202(b)). 7 SEC. 3. DEFINITIONS. 8 In this Act: 9 (1) APPROPRIATE CONGRESSIONAL COMMIT- 10 TEES.—The term ‘‘appropriate congressional com- 11 mittees’’ means the Committee on Finance of the 12 Senate and the Committee on Ways and Means of 13 the House of Representatives. 14 (2) HTS.—The term ‘‘HTS’’ means the Har- 15 monized Tariff Schedule of the United States. 16 (3) IDENTICAL GOODS.—The term ‘‘identical 17 goods’’ means goods that are the same in all re- 18 spects relevant to the rule of origin that qualifies the 19 goods as originating goods. 20 (4) INTERNATIONAL TRADE COMMISSION.—The 21 term ‘‘International Trade Commission’’ means the 22 United States International Trade Commission. 23 (5) MEXICO.—The term ‘‘Mexico’’ means the 24 United Mexican States. 25 VerDate Sep 11 2014 21:06 Dec 19, 2019 Jkt 099200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\S3052.IS S3052 pamtmann on DSKBC07HB2PROD with BILLS 6 •S 3052 IS (6) NAFTA.—The term ‘‘NAFTA’’ means the 1 North American Free Trade Agreement approved by 2 Congress under section 101(a)(1) of the North 3 American Free Trade Agreement Implementation 4 Act (19 U.S.C. 3311(a)(1)). 5 (7) PREFERENTIAL TARIFF TREATMENT.—The 6 term ‘‘preferential tariff treatment’’ means the cus- 7 toms duty rate that is applicable to an originating 8 good (as defined in section 202(a)) under the 9 USMCA. 10 (8) TRADE REPRESENTATIVE.—The term 11 ‘‘Trade Representative’’ means the United States 12 Trade Representative. 13 (9) USMCA.—The term ‘‘USMCA’’ means the 14 Agreement between the United States of America, 15 the United Mexican States, and Canada, which is— 16 (A) attached as an Annex to the Protocol 17 Replacing the North American Free Trade 18 Agreement with the Agreement between the 19 United States of America, the United Mexican 20 States, and Canada, done at Buenos Aires on 21 November 30, 2018, as amended by the Pro- 22 tocol of Amendment to the Agreement Between 23 the United States of America, the United Mexi- 24 VerDate Sep 11 2014 21:06 Dec 19, 2019 Jkt 099200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\S3052.IS S3052 pamtmann on DSKBC07HB2PROD with BILLS 7 •S 3052 IS can States, and Canada, done at Mexico City 1 on December 10, 2019; and 2 (B) approved by Congress under section 3 101(a)(1). 4 (10) USMCA COUNTRY.—Except as otherwise 5 provided, the term ‘‘USMCA country’’ means— 6 (A) Canada for such time as the USMCA 7 is in force with respect to, and the United 8 States applies the USMCA to, Canada; and 9 (B) Mexico for such time as the USMCA 10 is in force with respect to, and the United 11 States applies the USMCA to, Mexico. 12 TITLE I—APPROVAL OF, AND 13 GENERAL PROVISIONS RE- 14 LATING TO, THE USMCA 15 SEC. 101. APPROVAL AND ENTRY INTO FORCE OF THE 16 USMCA. 17 (a) APPROVAL OF USMCA AND STATEMENT OF AD- 18 MINISTRATIVE ACTION.—Pursuant to section 106 of the 19 Bipartisan Congressional Trade Priorities and Account- 20 ability Act of 2015 (19 U.S.C. 4205) and section 151 of 21 the Trade Act of 1974 (19 U.S.C. 2191), Congress ap- 22 proves— 23 (1) the Protocol Replacing the North American 24 Free Trade Agreement with the Agreement between 25 VerDate Sep 11 2014 21:06 Dec 19, 2019 Jkt 099200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\S3052.IS S3052 pamtmann on DSKBC07HB2PROD with BILLS 8 •S 3052 IS the United States of America, the United Mexican 1 States, and Canada, done at Buenos Aires on No- 2 vember 30, 2018, as submitted to Congress on De- 3 cember 13, 2019; 4 (2) the Agreement between the United States of 5 America, the United Mexican States, and Canada, 6 attached as an Annex to the Protocol, as amended 7 by the Protocol of Amendment to the Agreement be- 8 tween the United States of America, the United 9 Mexican States, and Canada, done at Mexico City on 10 December 10, 2019, as submitted to Congress on 11 December 13, 2019; and 12 (3) the statement of administrative action pro- 13 posed to implement that Agreement, as submitted to 14 Congress on December 13, 2019. 15 (b) CONDITIONS FOR ENTRY INTO FORCE OF THE 16 AGREEMENT.—The President is authorized to provide for 17 the USMCA to enter into force with respect to Canada 18 and Mexico not earlier than 30 days after the date on 19 which the President submits to Congress the written no- 20 tice required by section 106(a)(1)(G) of the Bipartisan 21 Congressional Trade Priorities and Accountability Act of 22 2015 (19 U.S.C. 4205(a)(1)(G)), which shall include the 23 date on which the USMCA will enter into force. 24 VerDate Sep 11 2014 21:06 Dec 19, 2019 Jkt 099200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\S3052.IS S3052 pamtmann on DSKBC07HB2PROD with BILLS 9 •S 3052 IS SEC. 102. RELATIONSHIP OF THE USMCA TO UNITED 1 STATES AND STATE LAW. 2 (a) RELATIONSHIP OF USMCA TO UNITED STATES 3 LAW.— 4 (1) UNITED STATES LAW TO PREVAIL IN CON- 5 FLICT.—No provision of the USMCA, nor the appli- 6 cation of any such provision to any person or cir- 7 cumstance, which is inconsistent with any law of the 8 United States, shall have effect. 9 (2) CONSTRUCTION.—Nothing in this Act shall 10 be construed— 11 (A) to amend or modify any law of the 12 United States, or 13 (B) to limit any authority conferred under 14 any law of the United States, 15 unless specifically provided for in this Act. 16 (b) RELATIONSHIP OF USMCA TO STATE LAW.— 17 (1) LEGAL CHALLENGE.—No State law, or the 18 application thereof, may be declared invalid as to 19 any person or circumstance on the ground that the 20 provision or application is inconsistent with the 21 USMCA, except in an action brought by the United 22 States for the purpose of declaring such law or ap- 23 plication invalid. 24 (2) DEFINITION OF STATE LAW.—For purposes 25 of this subsection, the term ‘‘State law’’ includes— 26 VerDate Sep 11 2014 21:06 Dec 19, 2019 Jkt 099200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\S3052.IS S3052 pamtmann on DSKBC07HB2PROD with BILLS 10 •S 3052 IS (A) any law of a political subdivision of a 1 State; and 2 (B) any State law regulating or taxing the 3 business of insurance. 4 (c) EFFECT OF USMCA WITH RESPECT TO PRIVATE 5 REMEDIES.—No person other than the United States— 6 (1) shall have any cause of action or defense 7 under the USMCA or by virtue of congressional ap- 8 proval thereof; or 9 (2) may challenge, in any action brought under 10 any provision of law, any action or inaction by any 11 department, agency, or other instrumentality of the 12 United States, any State, or any political subdivision 13 of a State, on the ground that such action or inac- 14 tion is inconsistent with the USMCA. 15 SEC. 103. IMPLEMENTING ACTIONS IN ANTICIPATION OF 16 ENTRY INTO FORCE; INITIAL REGULATIONS; 17 TARIFF PROCLAMATION AUTHORITY. 18 (a) IMPLEMENTING ACTIONS.— 19 (1) PROCLAMATION AUTHORITY.—After the 20 date of the enactment of this Act— 21 (A) the President may proclaim such ac- 22 tions, and 23 VerDate Sep 11 2014 21:06 Dec 19, 2019 Jkt 099200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\S3052.IS S3052 pamtmann on DSKBC07HB2PROD with BILLS 11 •S 3052 IS (B) other appropriate officers of the 1 United States Government may prescribe such 2 regulations, 3 as may be necessary to ensure that any provision of 4 this Act, or amendment made by this Act, that takes 5 effect on the date on which the USMCA enters into 6 force is appropriately implemented on such date, but 7 no such proclamation or regulation may have an ef- 8 fective date earlier than the date on which the 9 USMCA enters into force. 10 (2) EFFECTIVE DATE OF CERTAIN PROCLAIMED 11 ACTIONS.—Any action proclaimed by the President 12 under the authority of this Act that is not subject 13 to the [Text truncated for display. 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