Latin America and Caribbean Nearshoring Act

To decrease dependency on People’s Republic of China manufacturing and decrease migration due to lost regional economic opportunities. 1. Short title This Act may be cited as the Latin America and Caribbean Nearshoring Act 2. Sense of Congress; statement of policy (a) Sense of Congress It is the sense of Congress that the United States has economic and national security interests in securing the critical mineral and energy supply chains of Latin American and Caribbean countries from control and influence by the People’s Republic of China. (b) Statement of policy It is the policy of the United States to— (1) advance United States foreign policy and development goals by assisting Latin American and Caribbean countries to reduce their dependence on critical mineral and energy supply chains controlled or influenced by the People’s Republic of China; (2) promote private sector-led long-term economic development, economic competitiveness and promoting good governance, human rights, and the rule of law in Latin American and Caribbean countries, particularly in the areas of investment, sustainable development, commercial relations, anti-corruption activities, and infrastructure projects; (3) encourage United States public and private sector investment in energy infrastructure projects of such countries to bridge the gap between energy security requirements and commercial demand in a way that is consistent with the region’s absorptive capacity; (4) encourage United States public and private sector investment in critical mineral mining and refining of such countries; and (5) help facilitate the export of United States energy technology and expertise to global markets. 3. Efforts of the Department of State and related agencies The Secretary of State, in coordination with the heads of United States agencies that operate under the foreign policy guidance of the Secretary of State, shall, as appropriate, prioritize and expedite the efforts of the Department of State and such agencies— (1) to support efforts of Latin American and Caribbean countries to secure their critical mineral and energy supply chains from control and influence by the People’s Republic of China; and (2) to otherwise carry out the policy described in section 2(b). 4. Assistance from the United States International Development Finance Corporation (a) In general The United States International Development Finance Corporation, in coordination with the Federal agencies and officials described in subsection (b), shall provide assistance under section 1421 of the Better Utilization of Investments Leading to Development Act of 2018 ( 22 U.S.C. 9621 (1) to support efforts of Latin American and Caribbean countries to secure their critical mineral and energy supply chains from control and influence by the People’s Republic of China; and (2) to otherwise carry out the policy described in section 2(b). (b) Federal agencies and officials described The Federal agencies and officials described in this subsection include— (1) the United States Trade and Development Agency, the Export-Import Bank of the United States, the Millenium Challenge Corporation, the United States Army Corps of Engineers, and the United States Agency for International Development; and (2) 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. (c) Exceptions In providing assistance described in subsection (a)— (1) the United States International Development Finance Corporation may provide support for projects in Latin American and Caribbean countries with upper-middle-income economies or high-income economies (as those terms are defined by the International Bank for Reconstruction and Development and the International Development Association (collectively referred to as the World Bank (2) the restriction under section 1412(c)(2) of the Better Utilization of Investments Leading to Development Act of 2018 ( 22 U.S.C. 9612(c)(2) (d) Plan Not later than 180 days after the date of the enactment of this Act, the United States International Development Finance Corporation 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 described in subsection (a), including to expedite the approval process for the provision of such assistance. 5. 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 any Latin American or Caribbean country to obtain an agreement for cooperation pursuant to section 123 of the Atomic Energy Act of 1954 ( 42 U.S.C. 2153 (1) the President determines that such sale will not threaten the national security of the United States; and (2) the country meets the conditions described in paragraphs (1), (2), and (3) of subsection (c). (b) Technical assistance and expertise The Administrator of the United States Agency for International Development, in consultation with the Secretary of Energy and the United States International Development Finance Corporation, may provide technical assistance and expertise in electrical grid and energy efficiency improvements related to sales under subsection (a), as appropriate. (c) 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. 6. Latin American or Caribbean country defined (a) In general In this Act, the term Latin American or Caribbean country (1) means— (A) a country in the Caribbean Sea, South America, or Central America; and (B) Mexico; and (2) except as provided in subsection (b), does not include Cuba or Venezuela. (b) Exception The term Latin American or Caribbean country (1) the government of such country— (A) has held free and fair presidential and legislative elections, as determined by independent international observers, and subsequent elections are scheduled; (B) respects and upholds human rights; (C) is taking significant steps to privatize its economy and institute a free market; (D) permits the international community to provide humanitarian, governance, and economic development assistance; (E) has freed all unlawfully detained United States citizens, legal permanent residents, and political prisoners; and (F) has expelled all security services from foreign adversaries from the country; and (2) the prior authorities of such country have renounced their illegitimate claim to power.

Summary: Latin America and Caribbean Nearshoring Act This bill provides assistance to Latin American and Caribbean countries (generally excluding Cuba and Venezuela) to strengthen their critical mineral and energy supply chains, promote economic development, and advance good governance. The bill requires the U.S. International Development Finance Corporation to provide loans, equity investments, insurance, and other assistance to support the efforts of eligible countries to secure their critical mineral and energy supply chains from the control and influence of China. The corporation must also provide this assistance for other purposes such as promoting private sector long-term economic development, advancing good governance, and encouraging investment in energy infrastructure and critical mineral mining. The bill also authorizes the President to sell nuclear reactors to these countries if such a sale will not threaten U.S. national security and if certain other conditions are met (such as the purchasing country taking steps to reduce economic dependence on China). Cuba and Venezuela shall be ineligible for assistance under this bill until the Department of State certifies to Congress that the relevant country's government has taken certain actions, such as (1) holding free and fair elections, (2) upholding human rights, and (3) taking significant steps to privatize its economy.