Section 1 Short title
This Act may be cited as the “United States-Republic of Korea Digital Trade Enforcement Act”.
United States-Republic of Korea Digital Trade Enforcement Act
A BILL
To authorize the appropriate administrative authorities to impose certain restrictions with respect to the Republic of Korea, and for other purposes.
Sec. 2 Sense of Congress
It is the sense of Congress that—
The United States and the Republic of Korea have a longstanding, strategically important economic and security partnership and are committed to furthering their leadership in the Indo-Pacific region.
Nearly 30,000 United States soldiers, sailors, airmen, guardians, and marines are stationed in South Korea as part of United States Forces Korea, a deterring force against North Korea and China and ensuring the security of all Koreans.
The economic relationship between the United States and South Korea is underpinned by the United States-Korea Free Trade Agreement, which promotes reciprocal trade ties between the countries.
South Korean companies have substantially increased investment into the United States due to the open investment climate maintained by the United States Government. However, the policies of the Government of South Korea often make it difficult for United States companies to invest and expand their business footprint in South Korea.
In 2023, the United States trade deficit with South Korea was $51,100,000,000, increasing by 16 percent from 2022, due in part to South Korea’s discriminatory economic policies.
South Korea is considering additional discriminatory digital regulations that would unduly burden United States businesses while benefitting Chinese technology companies.
The United States must ensure a fair and nondiscriminatory regulatory environment and strictly enforce obligations to not establish discriminatory digital trade policies around the world.
Sec. 3 Statement of policy
It is the policy of the United States that—
as the Chinese Communist Party seeks to extend its economic and military influence in the Indo-Pacific region, fair trade and economic policies in the Indo-Pacific are vitally important to United States leadership;
the United States Government should fully enforce the terms set forth in the United States-Korea Free Trade Agreement (as such term is defined in the United States-Korea Free Trade Agreement Act; 19 U.S.C. 3805 note); and
the United States Government should also use enforcement tools such as the authorities provided by section 301 of the Trade Act of 1974 (19 U.S.C. 2411; relating to actions by the United States Trade Representative) where necessary to ensure that foreign countries do not impose discriminatory digital policies that disfavor United States companies.
Sec. 4 Determination of discriminatory economic actions against United States private entities
Not later than 30 days after the enactment of any law or promulgation of any regulation by a government entity of the Republic of Korea that predesignates or post-estimates a United States online or digital platform operator and imposes discriminatory business restrictions, the United States Trade Representative shall submit a report to Congress that, includes—
a determination whether a United States private entity was negatively impacted by an action of any government entity of South Korea that predesignates or post-estimates a United States online or digital platform operator and imposes business restrictions;
a determination whether South Korea, by adopting the law or regulation that is the subject of the report, violates any obligations or denies any rights under bilateral or multilateral trade agreements with respect to the United States; and
a determination whether the law or regulation that is the subject of the report is either—
an unjustifiable action that burdens or restricts United States commerce, as such term is defined for purposes of section 301(a) of the Trade Act of 1974 (19 U.S.C. 2411(a)); or
an unreasonable or discriminatory action that burdens or restricts United States commerce, as such term is defined for purposes of section 301(b) of such Act (19 U.S.C. 2411(b)).
Sec. 5 Imposition of trade restrictions
Upon the submission of a report to Congress pursuant to section 4 that includes an affirmative determination described in any of paragraphs (1) through (3) of that section, the United States Trade Representative shall undertake measures to protect United States commerce abroad that may include the following:
A dispute initiated under the terms of the World Trade Organization’s Dispute Settlement Understanding.
An investigation under the authorities of section 301 of the Trade Act of 1974 (19 U.S.C. 2411).
A dispute under the provisions of the United States-Korea Free Trade Agreement.
Entering into an agreement with South Korea to mitigate all impacts of the law or regulation with respect to which the report was submitted on United States private entities.