II 

115TH CONGRESS 

1ST SESSION S. 1722 

To require the Committee on Foreign Investment in the United States to 

consider the reciprocity of foreign investment, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

AUGUST 2, 2017 

Mr. SULLIVAN introduced the following bill; which was read twice and referred 

to the Committee on Banking, Housing, and Urban Affairs 

A BILL 

To require the Committee on Foreign Investment in the 

United States to consider the reciprocity of foreign investment, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘True Reciprocity In5 vestment Act of 2017’’. 

6 SEC. 2. CONSIDERATION OF RECIPROCITY OF FOREIGN IN7 VESTMENT. 

8 Section 721 of the Defense Production Act of 1950 

9 (50 U.S.C. 4565) is amended by adding at the end the 

10 following: 


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1 ‘‘(o) CONSIDERATION OF RECIPROCITY OF FOREIGN

2 INVESTMENT.— 

3 ‘‘(1) REPORT REQUIRED.—Not later than 30 

4 days after the date of the enactment of the True 

5 Reciprocity Investment Act of 2017, and annually 

6 thereafter, the United States Trade Representative 

7 shall, in consultation with the Secretary of Com8 merce and the Secretary of the Treasury, submit to 

9 the appropriate congressional committees a report 

10 assessing the extent to which the governments of 

11 foreign countries allow investments by United States 

12 persons in those countries that are similar to invest13 ments in the United States made by entities orga14 nized under the laws of those countries. 

15 ‘‘(2) ELEMENTS.—The report required by para16 graph (1) shall include, with respect to each country 

17 that is a major trading partner of the United States, 

18 the following: 

19 ‘‘(A) A description of the laws, policies, 

20 and practices of the country with respect to for21 eign investment. 

22 ‘‘(B) A comparison of such laws, policies, 

23 and practices with the laws, policies, and prac24 tices of the United States with respect to for25 eign investment. 


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1 ‘‘(C) An assessment of laws, policies, and 

2 practices by the government of the country that 

3 prohibit, restrict, or delay investment in the 

4 country by United States persons. 

5 ‘‘(D) An identification of which such laws, 

6 policies, and practices have had the most sig7 nificant effect on investment in that country by 

8 United States persons. 

9 ‘‘(E) An identification of the industries in 

10 the United States that have been most severely 

11 affected by such laws, policies, and practices. 

12 ‘‘(F) An assessment of the transparency of 

13 the process for making such laws, policies, and 

14 practices. 

15 ‘‘(G) If a bilateral investment treaty is in 

16 effect between the United States and the coun17 try, an assessment of the extent to which the 

18 government of the country has complied with its 

19 obligations under the treaty. 

20 ‘‘(H) Recommendations with respect to 

21 what remedies may be available to facilitate in22 vestment in the country by United States per23 sons. 

24 ‘‘(I) An assessment of the amount of 

25 greenfield investment in the United States by 


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1 persons organized under the laws of or other2 wise subject to the jurisdiction of the country. 

3 ‘‘(3) DETERMINATIONS.—The report required 

4 by paragraph (1) shall include the determination of 

5 the Trade Representative, after consideration of the 

6 elements described in paragraph (2), of whether 

7 each country that is a major trading partner of the 

8 United States— 

9 ‘‘(A) has high barriers to investment by 

10 United States persons (to be known as a ‘high 

11 barrier country’); 

12 ‘‘(B) has recently taken measures that con13 stitute barriers to investment by United States 

14 persons or has indicated an intention to take 

15 such measures (to be known as a ‘watch coun16 try’); or 

17 ‘‘(C) has investment laws, policies, and 

18 practices that should be monitored (to be 

19 known as a ‘monitor country’). 

20 ‘‘(4) JUSTIFICATION FOR TRANSACTIONS WITH

21 HIGH BARRIER COUNTRIES.— 

22 ‘‘(A) IN GENERAL.—If the Committee rec23 ommends that the President not suspend or 

24 prohibit under subsection (d) a covered trans25 action described in subparagraph (B), the ComVerDate Sep 11 2014 02:51 Aug 16, 2017 Jkt 069200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\S1722.IS S1722

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1 mittee shall include in the report required by 

2 paragraph (1) an explanation of the reasons for 

3 recommending that the President not suspend 

4 or prohibit that transaction. 

5 ‘‘(B) COVERED TRANSACTION DE6 SCRIBED.—A covered transaction is described 

7 in this subparagraph if a party to the trans8 action is organized under the laws of or other9 wise subject to the jurisdiction of a high barrier 

10 country. 

11 ‘‘(5) DEFINITIONS.—In this subsection: 

12 ‘‘(A) APPROPRIATE CONGRESSIONAL COM13 MITTEES.—The term ‘appropriate congressional 

14 committees’ means— 

15 ‘‘(i) the Committee on Banking, 

16 Housing, and Urban Affairs, the Com17 mittee on Finance, the Committee on For18 eign Relations, and the Committee on 

19 Commerce, Science, and Transportation of 

20 the Senate; and 

21 ‘‘(ii) the Committee on Financial 

22 Service, the Committee on Ways and 

23 Means, the Committee on Foreign Affairs, 

24 and the Committee on Energy and Com25 merce of the House of Representatives. 


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1 ‘‘(B) GREENFIELD INVESTMENT.—The 

2 term ‘greenfield investment’ means an invest3 ment by a foreign person in the United States 

4 under which the foreign person builds oper5 ations and facilities in the United States in6 stead of purchasing or leasing existing facilities. 

7 ‘‘(C) UNITED STATES PERSON.—The term 

8 ‘United States person’ means— 

9 ‘‘(i) a United States citizen or an 

10 alien lawfully admitted for permanent resi11 dence to the United States; or 

12 ‘‘(ii) an entity organized under the 

13 laws of the United States or of any juris14 diction within the United States, including 

15 a foreign branch of such an entity.’’. 

16 SEC. 3. CONSIDERATION OF REPORT ON RECIPROCITY. 

17 Section 721(f) of the Defense Production Act of 1950 

18 (50 U.S.C. 4565(f)) is amended— 

19 (1) in paragraph (4)— 

20 (A) in subparagraph (A), by redesignating 

21 clauses (i), (ii), and (iii) as subclauses (I), (II), 

22 and (III), respectively, and by moving such sub23 clauses, as so redesignated, 2 ems to the right; 

24 and 


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1 (B) by redesignating subparagraphs (A), 

2 (B), and (C) as clauses (i), (ii), and (iii), re3 spectively, and by moving such clauses, as so 

4 redesignated, 2 ems to the right; 

5 (2) in paragraph (9), by redesignating subpara6 graphs (A), (B), and (C) as clauses (i), (ii), and 

7 (iii), respectively, and by moving such clauses, as so 

8 redesignated, 2 ems to the right; 

9 (3) by redesignating paragraphs (1) through 

10 (11) as subparagraphs (A) through (K), respectively, 

11 and by moving such subparagraphs, as so redesig12 nated, 2 ems to the right; 

13 (4) in the matter preceding subparagraph (A), 

14 as redesignated by paragraph (3), by striking ‘‘may, 

15 taking into account the requirements of national se16 curity, consider—’’ and inserting the following: ‘‘, 

17 taking into account the requirements of national se18 curity— 

19 ‘‘(1) may consider—’’; 

20 (5) in subparagraph (K), as redesignated by 

21 paragraph (3), by striking the period at the end and 

22 inserting ‘‘; and’’; and 

23 (6) by adding at the end the following: 

24 ‘‘(2) shall consider the findings in the most re25 cent report required by subsection (o) with respect 


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1 to any foreign country with jurisdiction over a party 

2 to the proposed or pending transaction.’’. 

Æ 


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