Market Economy Sourcing Act

#4008 | S Congress #116

Last Action: Read twice and referred to the Committee on Finance. (6/18/2020)

Bill Text Source: Congress.gov

Summary and Impacts
Original Text
[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 4008 Introduced in Senate (IS)]

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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 origination of goods in nonmarket economy countries.

    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 ``Market Economy Sourcing Act''.

SEC. 2. LIMITATION ON TRADE AUTHORITIES PROCEDURES RELATING TO 
              REQUIREMENTS ON CONTENT OF GOODS FROM NONMARKET ECONOMY 
              COUNTRIES.

    Section 106(b) of the Bipartisan Congressional Trade Priorities and 
Accountability Act of 2015 (19 U.S.C. 4205(b)) is amended by adding at 
the end the following:
            ``(7) Limitations on procedures relating to origination of 
        content of goods from nonmarket economy countries.--
                    ``(A) In general.--The trade authorities procedures 
                shall not apply to an implementing bill submitted with 
                respect to a trade agreement or trade agreements 
                entered into under section 103(b) unless the rules of 
                origin requirements under such agreement or 
                agreements--
                            ``(i) with respect to rules of origin based 
                        on value content of a good, require that, of 
                        the content of a good qualifying for 
                        preferential treatment under the agreement or 
                        agreements that does not originate (as 
                        specified in those rules) in a country that is 
                        party to the agreement or agreements--
                                    ``(I) during the 5-year period 
                                following the entry into force of the 
                                agreement or agreements, not more than 
                                20 percent of that content may 
                                originate in a nonmarket economy 
                                country; and
                                    ``(II) after the period specified 
                                in clause (i), not more than 10 percent 
                                of that content may originate in a 
                                nonmarket economy country; and
                            ``(ii) with respect to rules of origin that 
                        are not based on value content of a good, are 
                        consistent with the requirements under clause 
                        (i) based on processing requirements or tariff 
                        shifts as opposed to value content.
                    ``(B) Nonmarket economy country defined.--In this 
                paragraph, the term `nonmarket economy country' has the 
                meaning given that term in section 771(18) of the 
                Tariff Act of 1930 (19 U.S.C. 1677(18)).''.
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