Section 1 Short title
This Act may be cited as the “Deterring Escalation Through Economic Retaliation Act of 2023” or the “DETER Act of 2023”.
Deterring Escalation Through Economic Retaliation Act of 2023
A BILL
To deter conflict in the Taiwan Strait by establishing conditions for suspending normal trade relations with the People’s Republic of China, and for other purposes.
Sec. 2 Findings; sense of Congress
Findings— Congress makes the following findings:
The People's Republic of China has enjoyed normal trade relations with the United States since its approval to join the World Trade Organization on November 10, 2001, and formal accession on December 10, 2001.
The aggression of the People's Republic of China toward Taiwan has increased in recent years, as incursions into Taiwan’s Air Defense Identification Zone by aircraft of the People’s Liberation Army increased 178 percent from 2021 to 2022.
The economic coercion of the People’s Republic of China toward Taiwan has also increased in recent years, as the People's Republic of China has banned the import of more than 2,000 food products from Taiwan since August 2022.
The United States has a long-standing commitment to the security of Taiwan and stability of cross-strait relations as outlined in the Six Assurances, the three United States-People's Republic of China Joint Communiqués, and the Taiwan Relations Act (22 U.S.C. 3301 et seq.).
In response to the unprovoked invasion of Ukraine by the Russian Federation, the United States revoked nondiscriminatory treatment for imports from the Russian Federation and Belarus on April 8, 2022.
Sense of Congress— It is the sense of Congress that—
the United States has a strong interest in deterring the People's Republic of China from invading and seizing control of Taiwan and should employ economic levers of influence to promote and preserve a free and open Indo-Pacific, including prevention of aggression by the People's Republic of China toward Taiwan;
aggression by the People's Republic of China toward Taiwan would be a violation of international norms and inconsistent with standards of conduct required for countries enjoying normal trade relations in the United States market; and
the policies of the People's Republic of China violate its obligations under the Protocol on the Accession of the People’s Republic of China, including nonmarket practices, intellectual property theft, use of forced labor, and civil-military fusion.
Sec. 3 Annual certification regarding military force against Taiwan by the People’s Republic of China
In general— Not later than one year after the date of the enactment of this Act, and annually thereafter, the President shall submit to the appropriate congressional committees a report that includes a certification with respect to whether or not any entity of the People’s Republic of China, including the People’s Liberation Army, engaged in an act of coercion or military aggression that violated the sovereignty or territorial integrity of Taiwan during the one-year period preceding submission of the report.
Requests from Congress—
Requests— At any point during the one-year period after submission of a report required by subsection (a) and before submission of the next such report, any Member of Congress may inquire in writing of the President with respect to whether the certification included in the most recent such report is still accurate.
Responses— Upon receiving an inquiry from a Member of Congress under paragraph (1), the President shall respond in writing with respect to whether the certification included in the most recent report submitted under subsection (a) is still accurate.
Sec. 4 Suspension of normal trade relations with the People’s Republic of China
Suspension—
In general— Notwithstanding title I of the Act entitled, “An Act to authorize extension of nondiscriminatory treatment (normal trade relations treatment) to the People’s Republic of China, and to establish a framework for relations between the United States and the People’s Republic of China”, approved October 10, 2000 (Public Law 106–286; 114 Stat. 881), or any other provision of law, if, in a report submitted under section 3(a), the President is unable to certify that no entity of the People’s Republic of China, including the People’s Liberation Army, engaged in an act of coercion or military aggression that violated the sovereignty or territorial integrity of Taiwan during the one-year period preceding submission of the report—
on and after the date that is 30 days after submission of the report, the rates of duty set forth in column 2 of the Harmonized Tariff Schedule of the United States shall apply to all products of the People's Republic of China; and
not later than the date described in subparagraph (A), the President shall proclaim increases in such rates of duty with respect to such products.
Prior consultation— The President shall, not later than 5 calendar days before issuing any proclamation under paragraph (1)(B), consult with the appropriate congressional committees regarding the basis for and anticipated impact of the proposed increases to rates of duty under that paragraph.
Restoration of normal trade relations treatment— The President may resume the application of the rates of duty set forth in column 1 of the Harmonized Tariff Schedule of the United States to the products of the People's Republic of China on or after the date on which the President submits a report under section 3(a) that includes a certification that no entity of the People’s Republic of China, including the People’s Liberation Army, engaged in an act of coercion or military aggression that violated the sovereignty or territorial integrity of Taiwan during the one-year period preceding submission of the report.
Sec. 5 Assessment of supply chain security
Assessment required— The Secretary of Commerce, in consultation with the United States Trade Representative, the Secretary of State, the Secretary of Defense, and the Chief Executive Officer of the United States International Development Finance Corporation, shall—
conduct an assessment of United States supply chain vulnerabilities and risk exposure to the People's Republic of China; and
submit to the appropriate congressional committees, with each report required by section 3(a), a report on the assessment.
Elements— The report required by subsection (a)(2) shall include—
identification of goods—
for which the United States is significantly reliant on imports from the People's Republic of China; and
that are critical to the economic stability, health interests, and national security of the people of the United States;
an assessment of the economic impact that revocation of normal trade relations with the People's Republic of China would have on the price and supply of imports of goods identified under paragraph (1); and
proposals to mitigate the economic impact described in paragraph (2) by diversifying sourcing and supply chains for imports of such goods, including the use of development financing tools in coordination with allies of the United States and countries with which the United States has a free trade agreement in effect.
Form; public availability—
Form— The report required by subsection (a)(2) shall be submitted in unclassified form, but may include a classified annex.
Public availability— The unclassified portion of the report required by subsection (a)(2) shall be posted on a publicly accessible website of the Department of Commerce.
Sec. 6 National interest waiver and congressional review
Waiver— The President may waive the requirement under section 4(a)(1) for a one-year period if—
the President—
determines that such a waiver is in the national interest of the United States; and
submits to the appropriate congressional committees a notice of and justification for the waiver; and
a joint resolution of approval is enacted into law under subsection (b) during the period of 60 calendar days beginning on the date on which the President submits the notice required by paragraph (1)(B).
Congressional approval—
Joint resolution of approval defined— In this subsection, the term joint resolution means only a joint resolution—
that is introduced not later than 10 calendar days after the date on which Congress receives the notice required by subsection (a)(1)(B);
that does not have a preamble;
the title of which is as follows: “Joint resolution relating to the approval of continuing normal trade relations with the People's Republic of China.”; and
the matter after the resolving clause of which is as follows: “Congress approves of the waiver for a one-year period of the requirement under section 4(a)(1) of the Deterring Escalation Through Economic Retaliation Act of 2023 to suspend normal trade relations with the People's Republic of China, with respect to which notice was submitted to Congress on ____.”, with the blank space being filled with the appropriate date.
Fast track consideration in house of representatives—
Reconvening— Upon receipt of a notice under subsection (a)(1)(B), the Speaker of the House of Representatives, if the House would otherwise be adjourned, shall notify the Members of the House that, pursuant to this paragraph, the House shall convene not later than 10 calendar day after receipt of such notice.
Committee referral— A joint resolution of approval introduced in the House of Representatives shall be referred to the Committee on Ways and Means.
Reporting and discharge— If the Committee on Ways and Means has not reported a joint resolution of approval within 10 calendar days after the date of referral, the Committee shall be discharged from further consideration of the joint resolution and the joint resolution shall be referred to the appropriate calendar.
Proceeding to consideration— After the Committee on Ways and Means has considered a joint resolution and reports it to the House, or has been discharged from its consideration, it shall be in order, not later than 60 calendar days after Congress receives the notice described in subsection (a)(1)(B) to move to proceed to consider the joint resolution in the House. All points of order against the motion are waived. Such a motion shall not be in order after the House has disposed of a motion to proceed on the joint resolution. The previous question shall be considered as ordered on the motion to its adoption without intervening motion. The motion shall not be debatable. A motion to reconsider the vote by which the motion is disposed of shall not be in order.
Consideration— The joint resolution shall be considered as read. All points of order against the joint resolution and against its consideration are waived. The previous question shall be considered as ordered on the joint resolution to its passage without intervening motion except not more than 10 hours of debate equally divided and controlled by the proponent and an opponent. A motion to reconsider the vote on passage of the joint resolution shall not be in order.
Fast track consideration in senate—
Reconvening— Upon receipt of a notice under subsection (a)(1)(B), if the Senate has adjourned or recessed for more than 2 days, the majority leader of the Senate, after consultation with the minority leader of the Senate, shall notify the Members of the Senate that, pursuant to this paragraph, the Senate shall convene not later than 10 calendar days after receipt of such notice.
Committee referral— A joint resolution of approval introduced in the Senate shall be referred to the Committee on Finance.
Reporting and discharge— If the Committee on Finance has not reported a joint resolution of approval within 10 calendar days after the date of referral, the Committee shall be discharged from further consideration of the joint resolution and the joint resolution shall be placed immediately on the calendar.
Floor consideration—
In general— Notwithstanding Rule XXII of the Standing Rules of the Senate, it is in order at any time after the joint resolution has been placed on the calendar, and before the date that is 60 calendar days after Congress receives the notice described in subsection (a)(1)(B), to move to proceed to the consideration of the joint resolution. All points of order against the joint resolution (and against consideration of the joint resolution) are waived. The motion to proceed is not debatable. The motion is not subject to a motion to postpone. A motion to reconsider the vote by which the motion is agreed to or disagreed to shall not be in order. If a motion to proceed to the consideration of the resolution is agreed to, the joint resolution shall remain the unfinished business until disposed of.
Debate— Debate on the joint resolution, and on all debatable motions and appeals in connection therewith, shall be limited to not more than 10 hours, which shall be divided equally between the majority and minority leaders or their designees. A motion further to limit debate is in order and not debatable. An amendment to, or a motion to postpone, or a motion to proceed to the consideration of other business, or a motion to recommit the joint resolution is not in order.
Vote on passage— The vote on passage on a joint resolution of approval shall occur immediately following the conclusion of the debate on a joint resolution, and a single quorum call at the conclusion of the debate if requested in accordance with the rules of the Senate.
Rulings of the chair on procedure— Appeals from the decisions of the Chair relating to the application of the rules of the Senate, as the case may be, to the procedure relating to a joint resolution of approval shall be decided without debate.
Rules relating to Senate and House of Representatives—
Coordination with action by other house— If, before the passage by one House of a joint resolution of approval of that House, that House receives from the other House a joint resolution of approval, then the following procedures shall apply:
The joint resolution of the other House shall not be referred to a committee.
With respect to a joint resolution of the House receiving the resolution—
the procedure in that House shall be the same as if no joint resolution had been received from the other House; but
the vote on passage shall be on the joint resolution of the other House.
Treatment of joint resolution of other house— If one House fails to introduce or consider a joint resolution of approval under this subsection, the joint resolution of the other House shall be entitled to expedited floor procedures under this subsection.
Rules of House of Representatives and Senate— This subsection is enacted by Congress—
as an exercise of the rulemaking power of the Senate and the House of Representatives, respectively, and as such is deemed a part of the rules of each House, respectively, and supersedes other rules only to the extent that it is inconsistent with such rules; and
with full recognition of the constitutional right of either House to change the rules (so far as relating to the procedure of that House) at any time, in the same manner, and to the same extent as in the case of any other rule of that House.