IB Union Calendar No. 89 118th CONGRESS 1st Session H. R. 4004 [Report No. 118–116] IN THE HOUSE OF REPRESENTATIVES June 12, 2023 Mr. Smith of Missouri (for himself, Mr. Neal , Mr. Smith of Nebraska , Ms. Sewell , Mr. Kelly of Pennsylvania , Ms. DelBene , Mr. Ferguson , Ms. Chu , Mr. Moore of Utah , Mr. Panetta , Ms. Van Duyne , Mr. Feenstra , Ms. Malliotakis , Mr. Schneider , Ms. Tenney , Ms. Sánchez , Mr. Kustoff , Mr. Doggett , Mr. Blumenauer , Mr. Davis of Illinois , Mr. Evans , Mr. Kildee , Mrs. Miller of West Virginia , Mr. Larson of Connecticut , Mr. Higgins of New York , Mrs. Fischbach , Mrs. Steel , Mr. Smucker , Mr. Arrington , and Mr. Estes ) introduced the following bill; which was referred to the Committee on Ways and Means June 21, 2023 Additional sponsors: Mr. LaHood , Mr. Thompson of California , Mr. Pascrell , Ms. Moore of Wisconsin , Mr. Beyer , Mr. Murphy , Mr. Steube , Mr. Wenstrup , Mr. Balderson , Ms. DeLauro , Mr. Diaz-Balart , Mr. Johnson of Ohio , Ms. Lee of Nevada , and Ms. Plaskett June 21, 2023 Reported with an amendment, committed to the Committee of the Whole House on the State of the Union, and ordered to be printed Strike out all after the enacting clause and insert the part printed in italic For text of introduced bill, see copy of bill as introduced on June 12, 2023 A BILL To approve and implement the Agreement between the American Institute in Taiwan and the Taipei Economic and Cultural Representative Office in the United States regarding Trade between the United States of America and Taiwan, and for other purposes.

1. Short title This Act may be cited as the United States-Taiwan Initiative on 21st-Century Trade First Agreement Implementation Act . 2. Findings Congress finds the following: (1) As a leading democracy, Taiwan is a key partner of the United States in the Indo-Pacific region. (2) The United States and Taiwan share democratic values, deep commercial and economic ties, and strong people-to-people connections. Those links serve as the impetus for expanding engagement by the United States with Taiwan. (3) Taiwan is the eighth-largest trading partner of the United States and the United States is the second-largest trading partner of Taiwan. (4) Since 2020, the United States and Taiwan, under the auspices of the American Institute in Taiwan (AIT) and the Taipei Economic and Cultural Representative Office in the United States (TECRO), have held an economic prosperity partnership dialogue to enhance economic and commercial ties between the United States and Taiwan, including with respect to supply chain security and resiliency, investment screening, health, science, and technology, and the digital economy. (5) On June 1, 2022, the United States and Taiwan launched the United States-Taiwan Initiative on 21st-Century Trade to deepen our economic and trade relationship, advance mutual trade priorities based on shared values, promote innovation, and support inclusive economic growth for workers and businesses. (6) On August 17, 2022, the United States and Taiwan announced the negotiating mandate for formal trade negotiations under the United States-Taiwan Initiative on 21st-Century Trade and agreed to seek high-standard commitments. (7) Article I, section 8, clause 3 of the Constitution of the United States grants Congress authority over international trade. The President lacks the authority to enter into binding trade agreements absent approval from Congress. (8) Congressional approval of the United States-Taiwan Initiative on 21st-Century Trade First Agreement will ensure that the agreement, and the trade relationship between the United States and Taiwan more broadly, will be durable. A durable trade agreement will foster sustained economic growth and give workers, consumers, businesses, farmers, ranchers, and other stakeholders assurance that commercial ties between the United States and Taiwan will be long-lasting and reliable. 3. Purpose The purpose of this Act is— (1) to approve and implement the Agreement between the American Institute in Taiwan and the Taipei Economic and Cultural Representative Office in the United States regarding Trade between the United States of America and Taiwan, done on June 1, 2023; (2) to strengthen and develop economic relations between the United States and Taiwan for our mutual benefit; (3) to lay the foundation for further cooperation to expand and enhance the benefits of the Agreement; and (4) to establish transparency and consultation requirements with respect to Further Agreements. 4. Definitions In this Act: (1) Agreement The term Agreement means the Agreement between the American Institute in Taiwan and the Taipei Economic and Cultural Representative Office in the United States regarding Trade between the United States of America and Taiwan approved by Congress under section 5. (2) Appropriate congressional committees The term appropriate congressional committees means— (A) the Committee on Finance of the Senate; and (B) the Committee on Ways and Means of the House of Representatives. (3) Further agreement The term Further Agreement means— (A) any trade agreement, other than the Agreement approved by Congress under section 5, arising from or relating to the August 17, 2022, negotiating mandate relating to the United States-Taiwan Initiative on 21st-Century Trade; or (B) any nonministerial modification or nonministerial amendment to the Agreement. (4) Negotiating text The term negotiating text means any document that proposes the consideration, examination, or adoption of a particular element or language in an international instrument. (5) State law The term State law includes— (A) any law of a political subdivision of a State; and (B) any State law regulating or taxing the business of insurance. (6) Trade representative The term Trade Representative means the United States Trade Representative. 5. Approval of agreement Congress approves the Agreement between the American Institute in Taiwan and the Taipei Economic and Cultural Representative Office in the United States regarding Trade between the United States of America and Taiwan, done on June 1, 2023. 6. Entry into force of agreement (a) Conditions for entry into force of agreement The President may provide for the Agreement to enter into force not earlier than 30 days after the date on which the President submits to Congress a certification under subsection (c). (b) Consultation and report The President, not later than 30 days before submitting a certification under subsection (c), shall— (1) consult with the appropriate congressional committees; (2) submit to the appropriate congressional committees a report that— (A) explains the basis of the determination of the President contained in that certification, including by providing specific reference to the measures the parties to the Agreement intend to use to comply with the obligations in the Agreement; and (B) describes, including through the use of economic estimates and analyses, how entry into force of the Agreement will further trade relations between the United States and Taiwan and advance the interests of workers, consumers, businesses, farmers, ranchers, and other stakeholders in the United States; and (3) answer in writing any questions that relate to potential compliance and implementation of the Agreement that are submitted by the appropriate congressional committees during the 15-day period beginning on the date of the submission of the report under paragraph (2). (c) Certification A certification under this subsection is a certification in writing that— (1) indicates the President has determined Taiwan has taken measures necessary to comply with the provisions of the Agreement that are to take effect not later than the date on which the Agreement enters into force; and (2) identifies the anticipated date the President intends to exchange notes or take any other action to notify Taiwan that the United States has completed all procedures necessary to bring the Agreement into force. (d) Report on implementation (1) In general Not later than 180 days after entry into force of the Agreement, the Trade Representative shall submit to the appropriate congressional committees a report providing an assessment of the implementation of the Agreement, including by identifying any provisions for which further progress is necessary to secure compliance. (2) Form The report required by paragraph (1) shall be submitted with any confidential business information clearly identified or contained in a separate annex. (3) Publication Not later than 5 days after the report required by paragraph (1) is submitted to the appropriate congressional committees, the Trade Representative shall publish the report, with any confidential business information redacted, on a publicly available website of the Office of the United States Trade Representative. 7. Transparency and consultation with respect to further agreements (a) Sense of congress on deepening relationship with taiwan It is the sense of Congress that— (1) the United States should continue to deepen its relationship with Taiwan; and (2) any Further Agreements should be high-standard, enforceable, and meaningful to both the United States and Taiwan, as well as subject to robust requirements on public transparency and congressional consultation. (b) Access to texts of further agreements The Trade Representative shall provide to the appropriate congressional committees the following with respect to a Further Agreement: (1) Negotiating text drafted by the United States prior to sharing the negotiating text with Taiwan or otherwise sharing the text outside the executive branch. (2) Negotiating text drafted by Taiwan not later than 3 days after receiving the text from Taiwan. (3) Any consolidated negotiating texts that the United States and Taiwan are considering, which shall include an attribution of the source of each provision contained in those texts to either the United States or Taiwan. (4) The final text not later than 45 days before the Trade Representative makes the text public or otherwise shares the text outside the executive branch. (c) Review of texts (1) Briefing The Trade Representative shall schedule a briefing with the appropriate congressional committees to discuss the texts provided under subsection (b). (2) Review The appropriate congressional committees shall have not less than— (A) 2 business days prior to the briefing under paragraph (1) to review the texts provided under subsection (b); and (B) 4 business days after the briefing to provide comments with respect to the texts before the Trade Representative transmits any such texts to Taiwan. (3) Additional time to review united states negotiating text If, during the period specified in paragraph (2)(B), two Members of Congress who are not of the same political party and each of whom is the Chair or Ranking Member of one of the appropriate congressional committees jointly request additional time to review the negotiating text provided under subsection (b)(1), the Trade Representative shall not transmit the text to Taiwan for a period of 15 business days following the request, unless the request indicates less time is necessary or such Members issue a subsequent joint notification to the Trade Representative that they have concluded their review sooner. (d) Notification and briefing during negotiations The Trade Representative shall— (1) not later than one business day after scheduling any negotiating round with respect to a Further Agreement, promptly notify the appropriate congressional committees and provide those committees with the dates and locations for the negotiating round; (2) ensure that any individual described in section 104(c)(2)(C) of the Bipartisan Congressional Trade Priorities and Accountability Act of 2015 ( 19 U.S.C. 4203(c)(2)(C) ) that attends a negotiating round is accredited as a member of the United States delegation during any such negotiating round; and (3) provide daily briefings to the individuals described in paragraph (2) during any such negotiating round regarding the status of those negotiations, including any tentative agreement to accept any aspect of negotiating text. (e) Approval A Further Agreement shall not take effect unless— (1) the President, at least 60 days before the day on which the President enters into the Further Agreement, publishes the text of the Further Agreement on a publicly available website of the Office of the United States Trade Representative; and (2) a bill is enacted into law expressly approving the Further Agreement and, if necessary, making any required changes to United States law. 8. Relationship of the agreement to united states and state law (a) Relationship of the agreement to united states law (1) United states law to prevail in conflict No provision of the Agreement, nor the application of any such provision to any person or circumstance, which is inconsistent with any law of the United States, shall have effect. (2) Internal revenue code The Agreement does not constitute a free trade agreement for purposes of section 30D(e)(1)(A)(i)(II) of the Internal Revenue Code of 1986. (3) Construction Unless specifically provided for in this Act, nothing in this Act shall be construed— (A) to amend or modify any law of the United States; or (B) to limit any authority conferred under any law of the United States. (b) Relationship of the agreement to state law No State law, or the application thereof, may be declared invalid as to any person or circumstance on the ground that the provision or application is inconsistent with the Agreement, except in an action brought by the United States for the purpose of declaring such law or application invalid. (c) Effect of the agreement with respect to private remedies No person other than the United States— (1) shall have any cause of action or defense under the Agreement or by virtue of congressional approval thereof; or (2) may challenge, in any action brought under any provision of law, any action or inaction by any department, agency, or other instrumentality of the United States, any State, or any political subdivision of a State, on the ground that such action or inaction is inconsistent with the Agreement.

June 21, 2023 Reported with an amendment, committed to the Committee of the Whole House on the State of the Union, and ordered to be printed