Western Hemisphere Nearshoring Act
This bill provides assistance for corporations to move operations from China to countries in Latin America or the Caribbean and addresses related issues.
For example, the bill requires the U.S. International Development Finance Corporation to provide financing and other assistance to eligible corporations for costs associated with such a move. Tariffs collected for goods manufactured in China shall be used to pay for such assistance.
The President may provide preferential treatment, including duty-free treatment, for goods produced in a Latin American or Caribbean country by a corporation that received relocation assistance under this bill.
To decrease dependency on People's Republic of China manufacturing and 
    decrease migration due to lost regional economic opportunities.

    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 ``Western Hemisphere Nearshoring 
Act''.

SEC. 2. FINDINGS.

    Congress finds the following:
            (1) Our neighbors in the Western Hemisphere play a vital 
        role in ensuring peace, security, and democracy.
            (2) Instability and lack of economic opportunities in the 
        region are major drivers of migration in violation of the 
        Immigration and Nationality Act.
            (3) According to the United States Census Bureau, in 2021 
        the United States exported $174.62 billion worth of goods to 
        Central and South America, and imported $121 billion.
            (4) The United States is a net exporter with Central and 
        South America.
            (5) Economic growth and development of the Western 
        Hemisphere brings essential strength and stability to the 
        region.
            (6) There is significant opportunity to expand the free 
        flow of goods and services in the Western Hemisphere.
            (7) Closer relations among the Americas through free trade 
        agreements and trade liberalization would encourage further 
        economic development and stability in the region.
            (8) The United States should exercise its influence to 
        encourage privatization, free markets, and economic cooperation 
        in the region.
            (9) Countries in the region should combat corruption, 
        strengthen the rule of law, reduce bureaucratic red tape, 
        streamline permitting, and embrace free market principles to 
        encourage further private sector investment.
            (10) With cooperation from the United States, regional 
        countries must take serious steps to curb migration in 
        violation of the Immigration and Nationality Act.
            (11) The Western Hemisphere has supply chains that are 
        vulnerable due to their over dependence on the People's 
        Republic of China.
            (12) Free trade and expanded commercial ties between the 
        United States and Western Hemisphere partners will foster 
        economic and commercial cooperation, increase investment 
        opportunities, decrease migration in violation of the 
        Immigration and Nationality Act, reduce our dependence on the 
        People's Republic of China, and create jobs for American 
        workers.

SEC. 3. USE OF UNITED STATES INTERNATIONAL DEVELOPMENT FINANCE 
              CORPORATION FUNDS TO FINANCE MOVING EXPENSES AND 
              NECESSARY WORKFORCE DEVELOPMENT COSTS INCURRED BY 
              COMPANIES MOVING FROM THE PEOPLE'S REPUBLIC OF CHINA TO 
              LATIN AMERICA OR THE CARIBBEAN.

    (a) Use of Funds.--
            (1) In general.--The United States International 
        Development Finance Corporation, in coordination with relevant 
        Federal agencies (including the United States Trade and 
        Development Agency, the Export-Import Bank of the United 
        States, the United States Army Corps of Engineers, and the 
        United States Agency for International Development) and the 
        United States Executive Directors of relevant international 
        financial institutions (including the World Bank Group, the 
        Inter-American Development Bank, and the International Monetary 
        Fund), shall use not less than 10 percent of the amounts made 
        available to provide financing under section 1421 of the Better 
        Utilization of Investments Leading to Development Act of 2018 
        (22 U.S.C. 9621) for each fiscal year beginning after the date 
        of the enactment of this Act to finance the qualified moving 
        costs and necessary workforce development costs of, and reduce 
        the interest rate on any loan to be provided by the DFC to the 
        interest rate described in paragraph (3) to, any qualified 
        corporation that is eligible for, or a recipient of, assistance 
        from the DFC, to the extent of qualifying applications for 
        assistance under this section.
            (2) Availability of unused amounts.--If the DFC does not 
        use the entire amount described in paragraph (1) for a fiscal 
        year described in such paragraph, such amount shall, to the 
        maximum extent practicable, be made available to the DFC for 
        the next fiscal year to carry out this section or other DFC 
        programs for Latin American or Caribbean countries.
            (3) Interest rate described.--The interest rate described 
        in this paragraph is--
                    (A) the Federal funds rate; or
                    (B) the interest rate that is determined by 
                reducing by not less than \1/2\ of 1 percent and not 
                more than 1 percent (but to not less than zero percent) 
                the interest rate on the loan to be provided by the DFC 
                to the qualified corporation,
        whichever is the lesser.
    (b) No Negative Effects on Employment in the United States.--The 
DFC shall not provide assistance under this section unless the 
Secretary of Commerce has determined that the provision of the 
assistance would not result in a negative effect on employment in the 
United States.
    (c) Disposition of Unused Assistance.--A corporation to which 
financing is made under this section shall remit to the DFC any portion 
of the assistance that is not expended within a period of time after 
the date the financing is made that is determined by the DFC on a case-
by-case basis.
    (d) Conditions on Provision of Loans.--The DFC--
            (1) may provide loans under this section to a corporation 
        only if the loans are commercially viable, as determined by the 
        DFC; and
            (2) shall determine an appropriate amount of time for 
        repayment of loans under this section to a corporation.
    (e) Plan.--Not later than 180 days after the date of the enactment 
of this Act, the DFC shall develop and submit to the Committee on 
Foreign Affairs of the House of Representatives and the Committee on 
Foreign Relations of the Senate a plan to streamline the provision of 
assistance under this section, including to expedite the approval 
process for the provision of such assistance.

SEC. 4. AUTHORITY TO PROVIDE DUTY-FREE TREATMENT FOR GOODS AND SERVICES 
              OF COMPANIES MOVING FROM THE PEOPLE'S REPUBLIC OF CHINA 
              TO LATIN AMERICA OR THE CARIBBEAN.

    (a) In General.--Notwithstanding any other provision of law, the 
President shall proclaim duty-free treatment (or other preferential 
treatment) for any good or service made or produced in a Latin American 
or Caribbean country by a qualified corporation that has received 
assistance under section 3, subject to such terms and conditions as the 
President determines to be appropriate.
    (b) Regulations.--The President shall prescribe such regulations as 
may be necessary to carry out this section.
    (c) Effective Period.--
            (1) In general.--Subsection (a) shall apply with respect to 
        a good or service made or produced in a Latin American or 
        Caribbean country by a corporation for the 15-year period 
        beginning on the date on which the corporation begins 
        operations in such country.
            (2) Rule of construction.--Nothing in this section may be 
        construed to affect duty-free treatment (or other preferential 
        treatment) for any good or service made or produced in a Latin 
        American or Caribbean country by a qualified corporation after 
        the 15-year period described in paragraph (1) if goods and 
        services from such country are otherwise generally eligible for 
        duty-free treatment (or other preferential treatment).

SEC. 5. ADDITIONAL CONDITIONS ON RECEIPT OF ASSISTANCE UNDER SECTION 3 
              AND DUTY-FREE TREATMENT (OR OTHER PREFERENTIAL TREATMENT) 
              UNDER SECTION 4.

    (a) In General.--The appropriate Federal agency may not provide 
assistance under section 3 or duty-free treatment (or other 
preferential treatment) under section 4 to a corporation unless--
            (1) the agency determines that the corporation will create 
        jobs in the Latin American or Caribbean country to which it 
        moves operations in numbers determined by the agency to be 
        commensurate with the assistance provided;
            (2) the corporation makes a binding commitment to the 
        agency that on and after the date the assistance is provided--
                    (A) the corporation will not come under the 
                ownership or control of the Government of the People's 
                Republic of China or the Chinese Communist Party, the 
                Government of the Russian Federation, or any other 
                foreign adversary; and
                    (B) the corporation will not have its headquarters 
                in the People's Republic of China, the Russian 
                Federation, or any other foreign adversary;
            (3) within 2 years after the date described in paragraph 
        (2), and subject to an additional extension as determined 
        appropriate by the agency, all assets of the corporation with 
        respect to which the assistance is provided will have been 
        moved from the People's Republic of China to a Latin American 
        or Caribbean country; and
            (4) the corporation retains all assets of the corporation 
        with respect to which the assistance is provided in a Latin 
        American or Caribbean country after the date described in 
        paragraph (2) or the last day of the extension described in 
        paragraph (3), as the case may be.
    (b) Compliance Determinations.--
            (1) In general.--The appropriate Federal agency, in 
        coordination with the Department of State, shall make all 
        determinations regarding compliance with the provisions of 
        subsection (a).
            (2) Non-compliance actions.--A qualified corporation that 
        has received assistance under section 3 or duty-free treatment 
        (or other preferential treatment) under section 4 that is 
        subsequently determined by the appropriate Federal agency not 
        to be in compliance with the provisions of subsection (a) shall 
        be subject to the following actions:
                    (A) Any good or service made or produced in a Latin 
                American or Caribbean country by the corporation (other 
                than a good or service made or produced in a free trade 
                zone or which is subject to benefits under a free trade 
                agreement) shall not be eligible for duty-free 
                treatment (or other preferential treatment) under 
                section 4.
                    (B) The appropriate Federal agency shall adjust the 
                interest rate on any loan to be provided by the agency 
                to the corporation to the prevailing market interest 
                rate.
    (c) Appropriate Federal Agency Defined.--In this section, the term 
``appropriate Federal agency'' means--
            (1) with respect to actions relating to assistance under 
        section 3, the DFC; and
            (2) with respect to actions relating to duty-free treatment 
        (or other preferential treatment) under section 4, the United 
        States Trade Representative.

SEC. 6. EXPENSES PAID FOR WITH TARIFFS COLLECTED FROM THE PEOPLE'S 
              REPUBLIC OF CHINA.

    (a) Establishment of Trust Fund.--There is established in the 
Treasury of the United States a trust fund consisting of such amounts 
as are appropriated to such trust fund under subsection (b).
    (b) Appropriations to Trust Fund.--There are hereby appropriated to 
such trust fund amounts equivalent to the tariffs collected by the 
United States on goods manufactured in the People's Republic of China.
    (c) Appropriations From Trust Fund.--There are hereby appropriated 
from such trust fund to the General Fund of the Treasury amounts 
equivalent to the reduction in revenue to such General Fund by reason 
assistance provided by the DFC under this Act.
    (d) Timing of Transfers, etc.--Rules similar to the rules of 
section 9601 of the Internal Revenue Code of 1986 shall apply with 
respect to appropriations to and from such trust fund under subsections 
(b) and (c).

SEC. 7. AMENDMENTS TO THE BUILD ACT OF 2018.

    (a) Statement of Policy.--Section 1411 of the Better Utilization of 
Investments Leading to Development Act of 2018 (22 U.S.C. 9611) is 
amended--
            (1) in paragraph (7), by striking ``and'' at the end;
            (2) in paragraph (8), by striking the period at the end and 
        inserting a semicolon; and
            (3) by adding at the end the following:
            ``(9) to further United States economic growth by 
        prioritizing United States-owned businesses in providing 
        support under title II; and
            ``(10) to further United States national security by 
        prioritizing the production of goods in critical industries, as 
        determined by the Corporation, in consultation with the 
        Department of Homeland Security.''.
    (b) Prohibition on Support for State-Owned Enterprises.--
            (1) In general.--Title V of the Better Utilization of 
        Investments Leading to Development Act of 2018 (22 U.S.C. 9671 
        et seq.) is amended by adding at the end the following:

``SEC. 1455. PROHIBITION ON SUPPORT FOR ENTITIES OWNED OR CONTROLLED BY 
              FOREIGN GOVERNMENTS.

    ``(a) In General.--Except as provided in subsection (b), the 
Corporation is prohibited from providing support under title II for an 
entity owned or controlled by a foreign government.
    ``(b) Exception.--
            ``(1) In general.--The Corporation may provide feasibility 
        studies and technical assistance under title II for an entity 
        owned or controlled by a foreign government that is not a 
        foreign adversary.
            ``(2) Foreign adversary defined.--In this subsection, the 
        term `foreign adversary' means a foreign government engaged in 
        a long-term pattern or serious instances of conduct 
        significantly adverse to the national security of the United 
        States or security and safety of United States persons.''.
            (2) Clerical amendment.--The table of contents for the FAA 
        Reauthorization Act of 2018 (49 U.S.C. 40101 note) is amended 
        by inserting after the item relating to section 1454 the 
        following:

``Sec. 1455. Prohibition on support for entities owned or controlled by 
                            foreign governments.''.

SEC. 8. TRADE NEGOTIATING AUTHORITY.

    (a) In General.--The United States Trade Representative shall take 
action to initiate negotiations to obtain trade agreements with each 
Latin American or Caribbean country that as of the date of the 
enactment of this Act is not a party to a free trade agreement with the 
United States if the country meets the conditions described in 
subsection (b) are met.
    (b) Conditions Described.--The conditions described in this 
subsection are the following:
            (1) The country is taking steps to reduce migration in 
        violation of the Immigration and Nationality Act.
            (2) The country is taking steps to reduce economic 
        dependence on the People's Republic of China.
            (3) The country allows Taiwan to establish and maintain a 
        commercial office in the country.

SEC. 9. AGREEMENTS FOR COOPERATION PURSUANT TO SECTION 123 OF THE 
              ATOMIC ENERGY ACT OF 1954.

    (a) In General.--The President is authorized to take action to 
initiate negotiations with Latin American and Caribbean countries to 
obtain agreements for cooperation pursuant to section 123 of the Atomic 
Energy Act of 1954 (42 U.S.C. 2153) to approve the sales of nuclear 
reactors to such countries, or to qualified corporations that receive 
assistance under this Act, but only if--
            (1) the President determines that such sales will not 
        threaten the national security of the United States; and
            (2) the countries or qualified corporations, as the case 
        may be, meet the conditions described in paragraphs (1), (2), 
        and (3) of section 8(b).
    (b) Technical Assistance and Expertise.--The Administrator of the 
United States Agency for International Development, in consultation 
with the Secretary of Energy and the DFC, may provide technical 
assistance and expertise in electrical grid and energy efficiency 
improvements related to sales under subsection (a), as appropriate.

SEC. 10. TEMPORARY INCREASED EXPENSING FOR RELOCATING MANUFACTURING 
              FROM THE PEOPLE'S REPUBLIC OF CHINA TO A LATIN AMERICAN 
              OR CARIBBEAN COUNTRY.

    (a) In General.--For purposes of section 168(k) of the Internal 
Revenue Code of 1986, in the case of any qualified relocated 
manufacturing property which is placed in service by a qualified 
manufacturer after the date of the enactment of this Act, and before 
January 1, 2037--
            (1) such property shall be treated as qualified property 
        (within the meaning of such section),
            (2) the applicable percentage otherwise determined under 
        section 168(k)(6) of such Code with respect to such property 
        shall be 75 percent, and
            (3) paragraph (8) of such section shall not apply.
    (b) Qualified Relocated Manufacturing Property.--For purposes of 
this section--
            (1) In general.--The term ``qualified relocated 
        manufacturing property'' means qualified property (within the 
        meaning of section 168(k) of such Code) or nonresidential real 
        property (as defined in section 168(e)(2)(B) of such Code) 
        which is--
                    (A) placed in service in a Latin American or 
                Caribbean country by a qualified manufacturer, and
                    (B) is acquired by such qualified manufacturer in 
                connection with a qualified relocation of 
                manufacturing.
            (2) Qualified relocation of manufacturing.--
                    (A) In general.--The term ``qualified relocation of 
                manufacturing'' means, with respect to any qualified 
                manufacturer, the relocation of the manufacturing of 
                any tangible personal property from the People's 
                Republic of China to a Latin American or Caribbean 
                country.
                    (B) Relocation of property not required.--For 
                purposes of subparagraph (A), manufacturing shall not 
                fail to be treated as relocated merely because property 
                used in such manufacturing was not relocated.
                    (C) Relocation of not less than equivalent 
                productive capacity required.--For purposes of 
                subparagraph (A), manufacturing shall not be treated as 
                relocated unless the property manufactured in a Latin 
                American or Caribbean country is substantially 
                identical to the property previously manufactured in 
                the People's Republic of China and the increase in the 
                units of production of such property in a Latin 
                American or Caribbean country by the qualified 
                manufacturer is not less than the reduction in the 
                units of production of such property by such qualified 
                manufacturer in the People's Republic of China.
    (c) Qualified Manufacturer.--For purposes of this section, the term 
``qualified manufacturer'' means any person--
            (1) which is engaged in the trade or business of 
        manufacturing any tangible personal property,
            (2) with respect to which the Secretary of the Treasury (or 
        the Secretary's delegate) has made the determination described 
        in section 5(a)(1), and
            (3) which has entered into a binding agreement with such 
        Secretary (or such delegate) to meet the requirements of 
        section 5(a)(2) which is enforceable under terms similar to the 
        terms of section 5(b).

SEC. 11. DEFINITIONS.

    In this Act:
            (1) DFC.--The term ``DFC'' means the United States 
        International Development Finance Corporation.
            (2) Qualified corporation.--The term ``qualified 
        corporation'' does not include a state-owned enterprise.
            (3) Qualified moving costs defined.--The term ``qualified 
        moving costs'' means--
                    (A) the costs of moving inventory, equipment, and 
                supplies from the People's Republic of China to a Latin 
                American or Caribbean country; and
                    (B) the costs of workforce development and 
                construction of facilities.
            (4) Latin american or caribbean country; western 
        hemisphere.--
                    (A) In general.--The terms ``Latin American or 
                Caribbean country'' and ``Western Hemisphere''--
                            (i) mean a country in the Caribbean Sea, 
                        South America, or Central America, and Mexico; 
                        and
                            (ii) except as provided in subparagraph 
                        (B), do not include Cuba or Venezuela.
                    (B) Exception.--The term ``Latin American or 
                Caribbean country'' shall include Cuba or Venezuela if 
                the Secretary of State determines and certifies to 
                Congress that--
                            (i) the government of such country--
                                    (I) has held free and fair 
                                presidential and legislative elections, 
                                as determined by independent 
                                international observers, and subsequent 
                                elections are scheduled;
                                    (II) respects and upholds human 
                                rights;
                                    (III) is taking significant steps 
                                to privatize its economy and institute 
                                a free market;
                                    (IV) permits the international 
                                community to provide humanitarian, 
                                governance, and economic development 
                                assistance;
                                    (V) has freed all unlawfully 
                                detained United States citizens, legal 
                                permanent residents, and political 
                                prisoners; and
                                    (VI) has expelled all security 
                                services from foreign adversaries from 
                                the country; and
                            (ii) the prior authorities of such country 
                        have renounced their illegitimate claim to 
                        power.
            (5) Federal funds rate.--The term ``Federal funds rate'' 
        means the discount window primary credit interest rate most 
        recently published on the Federal Reserve Statistical Release 
        on selected interest rates (daily or weekly), commonly referred 
        to as the H.15 release.
                                 <all>
Western Hemisphere Nearshoring Act
To decrease dependency on People's Republic of China manufacturing and decrease migration due to lost regional economic opportunities.
Western Hemisphere Nearshoring Act
Rep. Green, Mark E.