119-s2861

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 2861 Introduced in Senate

    (IS) ]

<DOC>

119th CONGRESS
 1st Session
 S. 2861

 To direct the United States Trade Representative to prioritize North 
 American alignment on foreign investment review during the next joint 
 review conducted under the United States-Mexico-Canada Agreement.

_______________________________________________________________________

 IN THE SENATE OF THE UNITED STATES

 September 18 (legislative day, September 16), 2025

 Mr. McCormick (for himself and Ms. Cortez Masto) introduced the 
 following bill; which was read twice and referred to the Committee on 
 Finance

_______________________________________________________________________

 A BILL

 To direct the United States Trade Representative to prioritize North 
 American alignment on foreign investment review during the next joint 
 review conducted under the United States-Mexico-Canada Agreement.

 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 ``Protecting the USMCA from Harmful 
Chinese Investment Act''.

SEC. 2. NORTH AMERICAN ALIGNMENT ON FOREIGN INVESTMENT REVIEW.

    (a) Sense of Congress.--It is the sense of Congress that--

    (1) Canada and Mexico are the two largest trading partners 
 of the United States, with bilateral goods and services trade 
 between the United States and each such country reaching 
 approximately $1,000,000,000,000 in 2024;

    (2) the United States-Mexico-Canada Agreement

    (USMCA) underpins much of the trade referred to in paragraph

    (1) and 
 promotes a strong North American supply chain that supports 
 millions of good-paying jobs in the United States;

    (3) given the close economic relationship between the 
 United States, Mexico, and Canada under the USMCA, ensuring 
 that each party has robust investment review mechanisms in 
 place is important towards strengthening the collective 
 national security interests of those countries against risks 
 stemming from foreign investments by nonmarket economy 
 countries, including the People's Republic of China;

    (4) the Committee on Foreign Investment in the United 
 States plays a critical role in protecting the national 
 security of the United States by reviewing foreign investments 
 for national security risks; and

    (5) the establishment by Mexico and Canada of legislative 
 and regulatory frameworks to review foreign investments for 
 national security risks that are similar to the framework 
 established under 

section 721 of the Defense Production Act of 
 1950 (50 U.S.C. 4565) would--
        (A) advance the national security interests of the 
 United States; and
        (B) allow for closer coordination between the USMCA 
 countries with respect to shared threats from 
 investments by nonmarket economy countries in 
 strategically important economic sectors and critical 
 infrastructure in North America.

    (b) Joint Review Negotiation Objective.--Subject to the 
requirements of 

section 611 of the United States-Mexico-Canada 
Agreement Implementation Act (19 U.S.C. 4611), during the first joint 
review conducted after the date of the enactment of this Act, the Trade 
Representative shall advocate for--

    (1) each USMCA country to implement a legislative and 
 regulatory framework for reviewing foreign investment for 
 national security risks that is similar to the framework 
 established under 

section 721 of the Defense Production Act of 
 1950 (50 U.S.C. 4565); and

    (2) the establishment of a mechanism for USMCA countries to 
 coordinate to address shared threats from investments by 
 nonmarket economy countries.
            (c) Technical Assistance.--In carrying out subsection

    (b) , the 
Trade Representative shall coordinate with the Secretary of the 
Treasury and the Secretary of State with respect to the provision of 
technical assistance to USMCA countries to support the establishment of 
frameworks for reviewing foreign investments for national security 
risks.
            (d) === Definitions. ===
-In this section:

    (1) Joint review.--The term ``joint review'' has the 
 meaning given that term in 

section 611 of the United States-
 Mexico-Canada Agreement Implementation Act (19 U.S.C. 4611).

    (2) Nonmarket economy country.--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) ).

    (3) Technical assistance.--The term ``technical 
 assistance'' includes--
        (A) the use of short-term and long-term expert 
 advisers to assist foreign governments with the 
 establishment of frameworks for reviewing foreign 
 investments for national security risks;
        (B) training in the recipient country, the United 
 States, or elsewhere for the establishment of such 
 frameworks;
            (C) grants of goods, services, or funds to foreign 
 governments;
            (D) grants to United States nonprofit organizations 
 to provide services or products that contribute to the 
 provision of advice to foreign governments; and
        (E) study tours for foreign officials in the United 
 States or elsewhere for the purpose of providing 
 technical information to such officials.

    (4) Trade representative.--The term ``Trade 
 Representative'' means the United States Trade Representative.

    (5) USMCA.--The term ``USMCA'' has the meaning given that 
 term in 

section 3 of the United States-Mexico-Canada Agreement 
 Implementation Act (19 U.S.C. 4502).

    (6) USMCA country.--The term ``USMCA country'' has the 
 meaning given that term in 

section 202

    (a) of the United States-
 Mexico-Canada Agreement Implementation Act (19 U.S.C. 4531

    (a) ).
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