Market Economy Sourcing Act

II 116TH CONGRESS 2D SESSION S. 4008 To amend the Bipartisan Congressional Trade Priorities and Accountability Act of 2015 to require that any trade agreement subject to expedited procedures under that Act contain certain requirements relating to the origination of goods in nonmarket economy countries. IN THE SENATE OF THE UNITED STATES JUNE 18, 2020 Mr. CASEY introduced the following bill; which was read twice and referred to the Committee on Finance A BILL To amend the Bipartisan Congressional Trade Priorities and Accountability Act of 2015 to require that any trade agreement subject to expedited procedures under that Act contain certain requirements relating to the origina- tion of goods in nonmarket economy countries. 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 ‘‘Market Economy 4 Sourcing Act’’. 5 VerDate Sep 11 2014 22:16 Jul 03, 2020 Jkt 099200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S4008.IS S4008 pbinns on DSKJLVW7X2PROD with BILLS 2 •S 4008 IS SEC. 2. LIMITATION ON TRADE AUTHORITIES PROCEDURES 1 RELATING TO REQUIREMENTS ON CONTENT 2 OF GOODS FROM NONMARKET ECONOMY 3 COUNTRIES. 4 Section 106(b) of the Bipartisan Congressional Trade 5 Priorities and Accountability Act of 2015 (19 U.S.C. 6 4205(b)) is amended by adding at the end the following: 7 ‘‘(7) LIMITATIONS ON PROCEDURES RELATING 8 TO ORIGINATION OF CONTENT OF GOODS FROM NON- 9 MARKET ECONOMY COUNTRIES.— 10 ‘‘(A) IN GENERAL.—The trade authorities 11 procedures shall not apply to an implementing 12 bill submitted with respect to a trade agreement 13 or trade agreements entered into under section 14 103(b) unless the rules of origin requirements 15 under such agreement or agreements— 16 ‘‘(i) with respect to rules of origin 17 based on value content of a good, require 18 that, of the content of a good qualifying 19 for preferential treatment under the agree- 20 ment or agreements that does not originate 21 (as specified in those rules) in a country 22 that is party to the agreement or agree- 23 ments— 24 ‘‘(I) during the 5-year period fol- 25 lowing the entry into force of the 26 VerDate Sep 11 2014 22:16 Jul 03, 2020 Jkt 099200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S4008.IS S4008 pbinns on DSKJLVW7X2PROD with BILLS 3 •S 4008 IS agreement or agreements, not more 1 than 20 percent of that content may 2 originate in a nonmarket economy 3 country; and 4 ‘‘(II) after the period specified in 5 clause (i), not more than 10 percent 6 of that content may originate in a 7 nonmarket economy country; and 8 ‘‘(ii) with respect to rules of origin 9 that are not based on value content of a 10 good, are consistent with the requirements 11 under clause (i) based on processing re- 12 quirements or tariff shifts as opposed to 13 value content. 14 ‘‘(B) NONMARKET ECONOMY COUNTRY DE- 15 FINED.—In this paragraph, the term ‘non- 16 market economy country’ has the meaning 17 given that term in section 771(18) of the Tariff 18 Act of 1930 (19 U.S.C. 1677(18)).’’. 19 Æ VerDate Sep 11 2014 22:16 Jul 03, 2020 Jkt 099200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6301 E:\BILLS\S4008.IS S4008 pbinns on DSKJLVW7X2PROD with BILLS