text: SECTION 1. SHORT TITLE.
  
      This Act may be cited as the ``True Reciprocity Investment Act of 
  2017''.
  
  SEC. 2. CONSIDERATION OF RECIPROCITY OF FOREIGN INVESTMENT.
  
      Section 721 of the Defense Production Act of 1950 (50 U.S.C. 4565) 
  is amended by adding at the end the following:
      ``(o) Consideration of Reciprocity of Foreign Investment.--
              ``(1) Report required.--Not later than 30 days after the 
          date of the enactment of the True Reciprocity Investment Act of 
          2017, and annually thereafter, the United States Trade 
          Representative shall, in consultation with the Secretary of 
          Commerce and the Secretary of the Treasury, submit to the 
          appropriate congressional committees a report assessing the 
          extent to which the governments of foreign countries allow 
          investments by United States persons in those countries that 
          are similar to investments in the United States made by 
          entities organized under the laws of those countries.
              ``(2) Elements.--The report required by paragraph (1) shall 
          include, with respect to each country that is a major trading 
          partner of the United States, the following:
                      ``(A) A description of the laws, policies, and 
                  practices of the country with respect to foreign 
                  investment.
                      ``(B) A comparison of such laws, policies, and 
                  practices with the laws, policies, and practices of the 
                  United States with respect to foreign investment.
                      ``(C) An assessment of laws, policies, and 
                  practices by the government of the country that 
                  prohibit, restrict, or delay investment in the country 
                  by United States persons.
                      ``(D) An identification of which such laws, 
                  policies, and practices have had the most significant 
                  effect on investment in that country by United States 
                  persons.
                      ``(E) An identification of the industries in the 
                  United States that have been most severely affected by 
                  such laws, policies, and practices.
                      ``(F) An assessment of the transparency of the 
                  process for making such laws, policies, and practices.
                      ``(G) If a bilateral investment treaty is in effect 
                  between the United States and the country, an 
                  assessment of the extent to which the government of the 
                  country has complied with its obligations under the 
                  treaty.
                      ``(H) Recommendations with respect to what remedies 
                  may be available to facilitate investment in the 
                  country by United States persons.
                      ``(I) An assessment of the amount of greenfield 
                  investment in the United States by persons organized 
                  under the laws of or otherwise subject to the 
                  jurisdiction of the country.
              ``(3) Determinations.--The report required by paragraph (1) 
          shall include the determination of the Trade Representative, 
          after consideration of the elements described in paragraph (2), 
          of whether each country that is a major trading partner of the 
          United States--
                      ``(A) has high barriers to investment by United 
                  States persons (to be known as a `high barrier 
                  country');
                      ``(B) has recently taken measures that constitute 
                  barriers to investment by United States persons or has 
                  indicated an intention to take such measures (to be 
                  known as a `watch country'); or
                      ``(C) has investment laws, policies, and practices 
                  that should be monitored (to be known as a `monitor 
                  country').
              ``(4) Justification for transactions with high barrier 
          countries.--
                      ``(A) In general.--If the Committee recommends that 
                  the President not suspend or prohibit under subsection 
                  (d) a covered transaction described in subparagraph 
                  (B), the Committee shall include in the report required 
                  by paragraph (1) an explanation of the reasons for 
                  recommending that the President not suspend or prohibit 
                  that transaction.
                      ``(B) Covered transaction described.--A covered 
                  transaction is described in this subparagraph if a 
                  party to the transaction is organized under the laws of 
                  or otherwise subject to the jurisdiction of a high 
                  barrier country.
              ``(5) Definitions.--In this subsection:
                      ``(A) Appropriate congressional committees.--The 
                  term `appropriate congressional committees' means--
                              ``(i) the Committee on Banking, Housing, 
                          and Urban Affairs, the Committee on Finance, 
                          the Committee on Foreign Relations, and the 
                          Committee on Commerce, Science, and 
                          Transportation of the Senate; and
                              ``(ii) the Committee on Financial Service, 
                          the Committee on Ways and Means, the Committee 
                          on Foreign Affairs, and the Committee on Energy 
                          and Commerce of the House of Representatives.
                      ``(B) Greenfield investment.--The term `greenfield 
                  investment' means an investment by a foreign person in 
                  the United States under which the foreign person builds 
                  operations and facilities in the United States instead 
                  of purchasing or leasing existing facilities.
                      ``(C) United states person.--The term `United 
                  States person' means--
                              ``(i) a United States citizen or an alien 
                          lawfully admitted for permanent residence to 
                          the United States; or
                              ``(ii) an entity organized under the laws 
                          of the United States or of any jurisdiction 
                          within the United States, including a foreign 
                          branch of such an entity.''.
  
  SEC. 3. CONSIDERATION OF REPORT ON RECIPROCITY.
  
      Section 721(f) of the Defense Production Act of 1950 (50 U.S.C. 
  4565(f)) is amended--
              (1) in paragraph (4)--
                      (A) in subparagraph (A), by redesignating clauses 
                  (i), (ii), and (iii) as subclauses (I), (II), and 
                  (III), respectively, and by moving such subclauses, as 
                  so redesignated, 2 ems to the right; and
                      (B) by redesignating subparagraphs (A), (B), and 
                  (C) as clauses (i), (ii), and (iii), respectively, and 
                  by moving such clauses, as so redesignated, 2 ems to 
                  the right;
              (2) in paragraph (9), by redesignating subparagraphs (A), 
          (B), and (C) as clauses (i), (ii), and (iii), respectively, and 
          by moving such clauses, as so redesignated, 2 ems to the right;
              (3) by redesignating paragraphs (1) through (11) as 
          subparagraphs (A) through (K), respectively, and by moving such 
          subparagraphs, as so redesignated, 2 ems to the right;
              (4) in the matter preceding subparagraph (A), as 
          redesignated by paragraph (3), by striking ``may, taking into 
          account the requirements of national security, consider--'' and 
          inserting the following: ``, taking into account the 
          requirements of national security--
              ``(1) may consider--'';
              (5) in subparagraph (K), as redesignated by paragraph (3), 
          by striking the period at the end and inserting ``; and''; and
              (6) by adding at the end the following:
              ``(2) shall consider the findings in the most recent report 
          required by subsection (o) with respect to any foreign country 
          with jurisdiction over a party to the proposed or pending 
          transaction.''.
target: True Reciprocity Investment Act of 2017 This bill amends the Defense Production Act of 1950 to direct the Office of the United States Trade Representative to submit an annual report assessing the extent to which foreign governments allow investments by U.S. persons (i.e., U.S. citizens, permanent residents, or U.S. entities) in their countries that are similar to investments in the United States made by entities organized in such foreign countries.  The report shall include, with respect to each major trading partner of the United States: (1) a description of the laws, policies, and practices of the country with respect to foreign investment; and (2) an assessment of the transparency of the process for making such laws, policies, and practices. The report shall also include the determination of the office whether each major trading partner: (1) has high barriers to investment by U.S. persons; (2) has recently taken measures that constitute barriers to investment by U.S. persons or has indicated an intention to take such measures; or (3) has investment laws, policies, and practices that should be monitored. If the Committee on Foreign Investment in the United States recommends that the President not suspend or prohibit a transaction made by a party that is subject to the jurisdiction of a high barrier country, it shall provide an explanation of the reasons for its recommendation.
feat_title: True Reciprocity Investment Act of 2017