Market Economy Sourcing Act

Bill: 117-s-2713
Sponsor: full_name: Sen. Casey, Robert P., Jr. [D-PA]
Introduced: 2021-09-13
Policy area: Foreign Trade and International Finance
Subjects: Congressional oversight

Legislative rules and procedure

Manufacturing

Trade agreements and negotiations
Latest action: action_date: 2021-09-13
text: Read twice and referred to the Committee on Finance.

Summaries:
action_date: 2021-09-13
action_desc: Introduced in Senate
text: <p><b>Market Economy Sourcing Act</b></p> <p>This bill limits the content from nonmarket economy countries that may be included in free trade agreement qualifying goods.</p> <p>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.</p> <p>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.</p>

tv_txt: II 117th CONGRESS 1st Session S. 2713 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.

1. Short title This Act may be cited as the Market Economy Sourcing Act . 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) ). .