Title: Market Economy Sourcing Act
Policy area: Foreign Trade and International Finance

Summary:
Market Economy Sourcing Act
This bill limits the content from nonmarket economy countries that may be included in free trade agreement qualifying goods.
A nonmarket economy country is a foreign country that does not operate on market principles of cost or pricing structures, so that sales of merchandise in such country do not reflect the fair price of the merchandise.
The bill requires that, during the five-year period following entry into force of a free trade agreement, no more than 20% of a qualifying good may originate in a nonmarket economy country, and no more than 10% thereafter.

[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[S. 2713 Introduced in Senate (IS)]

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117th CONGRESS
  1st Session
                                S. 2713

      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

                           September 13, 2021

   Mr. Casey (for himself, Mr. Brown, and Ms. Warren) 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 subclause (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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