United States-Taiwan Initiative on 21st-Century Trade First Agreement Implementation Act

137 STAT. 63 PUBLIC LAW 118–13—AUG. 7, 2023 Public Law 118–13 118th Congress An Act To approve and implement the Agreement between the American Institute in Taiwan and the Taipei Economic and Cultural Representative Office in the United States regarding Trade between the United States of America and Taiwan, and for other purposes. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, SECTION 1. SHORT TITLE. This Act may be cited as the ‘‘United States-Taiwan Initiative on 21st-Century Trade First Agreement Implementation Act’’. SEC. 2. FINDINGS. Congress finds the following: (1) As a leading democracy, Taiwan is a key partner of the United States in the Indo-Pacific region. (2) The United States and Taiwan share democratic values, deep commercial and economic ties, and strong people-to-people connections. Those links serve as the impetus for expanding engagement by the United States with Taiwan. (3) Taiwan is the eighth-largest trading partner of the United States and the United States is the second-largest trading partner of Taiwan. (4) Since 2020, the United States and Taiwan, under the auspices of the American Institute in Taiwan (AIT) and the Taipei Economic and Cultural Representative Office in the United States (TECRO), have held an economic prosperity part- nership dialogue to enhance economic and commercial ties between the United States and Taiwan, including with respect to supply chain security and resiliency, investment screening, health, science, and technology, and the digital economy. (5) On June 1, 2022, the United States and Taiwan launched the United States-Taiwan Initiative on 21st-Century Trade to deepen our economic and trade relationship, advance mutual trade priorities based on shared values, promote innova- tion, and support inclusive economic growth for workers and businesses. (6) On August 17, 2022, the United States and Taiwan announced the negotiating mandate for formal trade negotia- tions under the United States-Taiwan Initiative on 21st-Cen- tury Trade and agreed to seek high-standard commitments. (7) Article I, section 8, clause 3 of the Constitution of the United States grants Congress authority over international trade. The President lacks the authority to enter into binding trade agreements absent approval from Congress. United States- Taiwan Initiative on 21st-Century Trade First Agreement Implementation Act. 19 USC 2112 note. Aug. 7, 2023 [H.R. 4004] VerDate Sep 11 2014 14:22 Aug 11, 2023 Jkt 039139 PO 00013 Frm 00001 Fmt 6580 Sfmt 6581 E:\PUBLAW\PUBL013.118 PUBL013 whamilton on LAP1Z6H6L3PROD with PUBLAW 137 STAT. 64 PUBLIC LAW 118–13—AUG. 7, 2023 (8) Congressional approval of the United States-Taiwan Initiative on 21st-Century Trade First Agreement will ensure that the agreement, and the trade relationship between the United States and Taiwan more broadly, will be durable. A durable trade agreement will foster sustained economic growth and give workers, consumers, businesses, farmers, ranchers, and other stakeholders assurance that commercial ties between the United States and Taiwan will be long-lasting and reliable. SEC. 3. PURPOSE. The purpose of this Act is— (1) to approve and implement the Agreement between the American Institute in Taiwan and the Taipei Economic and Cultural Representative Office in the United States regarding Trade between the United States of America and Taiwan, done on June 1, 2023; (2) to strengthen and develop economic relations between the United States and Taiwan for our mutual benefit; (3) to lay the foundation for further cooperation to expand and enhance the benefits of the Agreement; and (4) to establish transparency and consultation requirements with respect to Further Agreements. SEC. 4. DEFINITIONS. In this Act: (1) AGREEMENT.—The term ‘‘Agreement’’ means the Agree- ment between the American Institute in Taiwan and the Taipei Economic and Cultural Representative Office in the United States regarding Trade between the United States of America and Taiwan approved by Congress under section 5. (2) APPROPRIATE CONGRESSIONAL COMMITTEES.—The term ‘‘appropriate congressional committees’’ means— (A) the Committee on Finance of the Senate; and (B) the Committee on Ways and Means of the House of Representatives. (3) FURTHER AGREEMENT.—The term ‘‘Further Agreement’’ means— (A) any trade agreement, other than the Agreement approved by Congress under section 5, arising from or relating to the August 17, 2022, negotiating mandate relating to the United States-Taiwan Initiative on 21st- Century Trade; or (B) any nonministerial modification or nonministerial amendment to the Agreement. (4) NEGOTIATING TEXT.—The term ‘‘negotiating text’’ means any document that proposes the consideration, examination, or adoption of a particular element or language in an inter- national instrument. (5) STATE LAW.—The term ‘‘State law’’ includes— (A) any law of a political subdivision of a State; and (B) any State law regulating or taxing the business of insurance. (6) TRADE REPRESENTATIVE.—The term ‘‘Trade Representa- tive’’ means the United States Trade Representative. Requirements. VerDate Sep 11 2014 14:22 Aug 11, 2023 Jkt 039139 PO 00013 Frm 00002 Fmt 6580 Sfmt 6581 E:\PUBLAW\PUBL013.118 PUBL013 whamilton on LAP1Z6H6L3PROD with PUBLAW 137 STAT. 65 PUBLIC LAW 118–13—AUG. 7, 2023 SEC. 5. APPROVAL OF AGREEMENT. Congress approves the Agreement between the American Institute in Taiwan and the Taipei Economic and Cultural Rep- resentative Office in the United States regarding Trade between the United States of America and Taiwan, done on June 1, 2023. SEC. 6. ENTRY INTO FORCE OF AGREEMENT. (a) CONDITIONS FOR ENTRY INTO FORCE OF AGREEMENT.—The President may provide for the Agreement to enter into force not earlier than 30 days after the date on which the President submits to Congress a certification under subsection (c). (b) CONSULTATION AND REPORT.—The President, not later than 30 days before submitting a certification under subsection (c), shall— (1) consult with the appropriate congressional committees; (2) submit to the appropriate congressional committees a report that— (A) explains the basis of the determination of the Presi- dent contained in that certification, including by providing specific reference to the measures the parties to the Agree- ment intend to use to comply with the obligations in the Agreement; and (B) describes, including through the use of economic estimates and analyses, how entry into force of the Agree- ment will further trade relations between the United States and Taiwan and advance the interests of workers, con- sumers, businesses, farmers, ranchers, and other stake- holders in the United States; and (3) answer in writing any questions that relate to potential compliance and implementation of the Agreement that are sub- mitted by the appropriate congressional committees during the 15-day period beginning on the date of the submission of the report under paragraph (2). (c) CERTIFICATION.—A certification under this subsection is a certification in writing that— (1) indicates the President has determined Taiwan has taken measures necessary to comply with the provisions of the Agreement that are to take effect not later than the date on which the Agreement enters into force; and (2) identifies the anticipated date the President intends to exchange notes or take any other action to notify Taiwan that the United States has completed all procedures necessary to bring the Agreement into force. (d) REPORT ON IMPLEMENTATION.— (1) IN GENERAL.—Not later than 180 days after entry into force of the Agreement, the Trade Representative shall submit to the appropriate congressional committees a report providing an assessment of the implementation of the Agreement, including by identifying any provisions for which further progress is necessary to secure compliance. (2) FORM.—The report required by paragraph (1) shall be submitted with any confidential business information clearly identified or contained in a separate annex. (3) PUBLICATION.—Not later than 5 days after the report required by paragraph (1) is submitted to the appropriate congressional committees, the Trade Representative shall pub- lish the report, with any confidential business information Confidentiality. Public information. Web posting. Time period. President. Deadlines. VerDate Sep 11 2014 14:22 Aug 11, 2023 Jkt 039139 PO 00013 Frm 00003 Fmt 6580 Sfmt 6581 E:\PUBLAW\PUBL013.118 PUBL013 whamilton on LAP1Z6H6L3PROD with PUBLAW 137 STAT. 66 PUBLIC LAW 118–13—AUG. 7, 2023 redacted, on a publicly available website of the Office of the United States Trade Representative. SEC. 7. TRANSPARENCY AND CONSULTATION WITH RESPECT TO FUR- THER AGREEMENTS. (a) SENSE OF CONGRESS ON DEEPENING RELATIONSHIP WITH TAIWAN.—It is the sense of Congress that— (1) the United States should continue to deepen its relation- ship with Taiwan; and (2) any Further Agreements should be high-standard, enforceable, and meaningful to both the United States and Taiwan, as well as subject to robust requirements on public transparency and congressional consultation. (b) ACCESS TO TEXTS OF FURTHER AGREEMENTS.—The Trade Representative shall provide to the appropriate congressional committees the following with respect to a Further Agreement: (1) Negotiating text drafted by the United States prior to sharing the negotiating text with Taiwan or otherwise sharing the text outside the executive branch. (2) Negotiating text drafted by Taiwan not later than 3 days after receiving the text from Taiwan. (3) Any consolidated negotiating texts that the United States and Taiwan are considering, which shall include an attribution of the source of each provision contained in those texts to either the United States or Taiwan. (4) The final text not later than 45 days before the Trade Representative makes the text public or otherwise shares the text outside the executive branch. (c) REVIEW OF TEXTS.— (1) BRIEFING.—The Trade Representative shall schedule a briefing with the appropriate congressional committees to discuss the texts provided under subsection (b). (2) REVIEW.—The appropriate congressional committees shall have not less than— (A) 2 business days prior to the briefing under para- graph (1) to review the texts provided under subsection (b); and (B) 4 business days after the briefing to provide com- ments with respect to the texts before the Trade Represent- ative transmits any such texts to Taiwan. (3) ADDITIONAL TIME TO REVIEW UNITED STATES NEGOTI- ATING TEXT.—If, during the period specified in paragraph (2)(B), two Members of Congress who are not of the same political party and each of whom is the Chair or Ranking Member of one of the appropriate congressional committees jointly request additional time to review the negotiating text provided under subsection (b)(1), the Trade Representative shall not transmit the text to Taiwan for a period of 15 business days following the request, unless the request indicates less time is necessary or such Members issue a subsequent joint notifica- tion to the Trade Representative that they have concluded their review sooner. (d) NOTIFICATION AND BRIEFING DURING NEGOTIATIONS.—The Trade Representative shall— (1) not later than one business day after scheduling any negotiating round with respect to a Further Agreement, promptly notify the appropriate congressional committees and Time period. Deadlines. VerDate Sep 11 2014 14:22 Aug 11, 2023 Jkt 039139 PO 00013 Frm 00004 Fmt 6580 Sfmt 6581 E:\PUBLAW\PUBL013.118 PUBL013 whamilton on LAP1Z6H6L3PROD with PUBLAW 137 STAT. 67 PUBLIC LAW 118–13—AUG. 7, 2023 provide those committees with the dates and locations for the negotiating round; (2) ensure that any individual described in section 104(c)(2)(C) of the Bipartisan Congressional Trade Priorities and Accountability Act of 2015 (19 U.S.C. 4203(c)(2)(C)) that attends a negotiating round is accredited as a member of the United States delegation during any such negotiating round; and (3) provide daily briefings to the individuals described in paragraph (2) during any such negotiating round regarding the status of those negotiations, including any tentative agree- ment to accept any aspect of negotiating text. (e) APPROVAL.—A Further Agreement shall not take effect unless— (1) the President, at least 60 days before the day on which the President enters into the Further Agreement, publishes the text of the Further Agreement on a publicly available website of the Office of the United States Trade Representative; and (2) a bill is enacted into law expressly approving the Fur- ther Agreement and, if necessary, making any required changes to United States law. SEC. 8. RELATIONSHIP OF THE AGREEMENT TO UNITED STATES AND STATE LAW. (a) RELATIONSHIP OF THE AGREEMENT TO UNITED STATES LAW.— (1) UNITED STATES LAW TO PREVAIL IN CONFLICT.—No provi- sion of the Agreement, nor the application of any such provision to any person or circumstance, which is inconsistent with any law of the United States, shall have effect. (2) INTERNAL REVENUE CODE.—The Agreement does not constitute a free trade agreement for purposes of section 30D(e)(1)(A)(i)(II) of the Internal Revenue Code of 1986. (3) CONSTRUCTION.—Unless specifically provided for in this Act, nothing in this Act shall be construed— (A) to amend or modify any law of the United States; or (B) to limit any authority conferred under any law of the United States. (b) RELATIONSHIP OF THE AGREEMENT TO STATE LAW.—No State law, or the application thereof, may be declared invalid as to any person or circumstance on the ground that the provision or applica- tion is inconsistent with the Agreement, except in an action brought by the United States for the purpose of declaring such law or application invalid. (c) EFFECT OF THE AGREEMENT WITH RESPECT TO PRIVATE REMEDIES.—No person other than the United States— (1) shall have any cause of action or defense under the Agreement or by virtue of congressional approval thereof; or (2) may challenge, in any action brought under any provi- sion of law, any action or inaction by any department, agency, or other instrumentality of the United States, any State, or President. Public information. Web posting. VerDate Sep 11 2014 14:22 Aug 11, 2023 Jkt 039139 PO 00013 Frm 00005 Fmt 6580 Sfmt 6581 E:\PUBLAW\PUBL013.118 PUBL013 whamilton on LAP1Z6H6L3PROD with PUBLAW 137 STAT. 68 PUBLIC LAW 118–13—AUG. 7, 2023 LEGISLATIVE HISTORY—H.R. 4004: HOUSE REPORTS: No. 118–116 (Comm. on Ways and Means). CONGRESSIONAL RECORD, Vol. 169 (2023): June 21, considered and passed House. July 18, considered and passed Senate. DAILY COMPILATION [Text truncated for display. Full text available on Congress.gov.]