That the Senate—
recognizes that increased tensions between the United States and the People’s Republic of China and the COVID–19 pandemic have—
exposed severe vulnerabilities attributable to overreliance by the United States and other countries on supply chains based solely or mainly in the People’s Republic of China; and
heightened the importance of the United States diversifying its supply chains through reshoring and nearshoring initiatives to increase resiliency against future disruptions;
emphasizes that reshoring efforts of sufficient scale to increase domestic production capacity and relocate supply chains to the United States remain critical and should be encouraged and implemented;
emphasizes that—
nearshoring efforts should be pursued in a complementary fashion to better achieve more resilient, diverse, and secure supply chains, particularly for goods unlikely to be produced in the United States;
nearshoring in Latin America and the Caribbean, relative to relying on supply chains in other geographic regions, has the greatest potential to contribute to the economic prosperity and security of the United States while also advancing the post-pandemic economic recovery of countries in the Western Hemisphere;
nearshoring in Latin America and the Caribbean provides greater opportunities for expanding co-production operations and other cooperative business ventures with United States entities; and
nearshoring in Latin America and the Caribbean can complement and enhance efforts by the United States to support democratic consolidation across the region by strengthening the rule of law, encouraging competitiveness, promoting education and vocational training, and raising standards on corruption, labor, and environmental issues;
supports initiatives by the Inter-American Development Bank, the Government of Canada, governments in Latin America and the Caribbean, and the private sector to finance, incentivize, or otherwise promote nearshoring in Latin America and the Caribbean;
encourages the United States Agency for International Development and the United States International Development Finance Corporation to strengthen programmatic support for initiatives likely to facilitate the relocation of global supply chains to the Western Hemisphere, including through increased collaboration with each other, the private sector, the Inter-American Development Bank, Canada, and countries in Latin America and the Caribbean;
calls for governments in Latin America and the Caribbean to increase opportunities for nearshoring in the region by—
modernizing and consolidating physical and digital infrastructure;
combating corruption, strengthening the rule of law, promoting education and vocational training, enhancing labor and environmental standards, and improving democratic governance; and
pursuing other efforts to facilitate the ease of doing business in and attract foreign direct investment to the region, including by leveraging strong relationships with Taiwan; and
urges the Secretary of State, in coordination with the United States Agency for International Development, the United States International Development Finance Corporation, and the heads of all other relevant Federal agencies and departments, to prioritize efforts to advance nearshoring in Latin America and the Caribbean, including by—
strengthening support for the activities described in paragraph (6);
engaging with governments in the Western Hemisphere to explore opportunities to lower trade barriers, streamline customs and other regulations, support capacity building programs to strengthen environmental and labor standards, establish incentives for mutually beneficial co-production arrangements, and facilitate economic integration of the region;
strengthening legal regimes and monitoring and enforcement measures relating to labor standards to ensure that—
any enhanced sourcing relationship with a country does not support or beget labor abuse or other human rights abuses, such as those found in the People’s Republic of China; and
any new investment under a nearshoring program has sufficient labor standards and benefits the workers in such country;
ensuring that nearshoring activities are consistent with efforts to improve supply chain energy efficiency, reduce the energy used to transport goods, and advance environmental sustainability;
working in partnership with multilateral development banks and private investors to create incentives for entities to relocate supply chains from the People’s Republic of China to the Western Hemisphere, including by financing the development of regional technology hubs with strong labor and environmental regulations; and
using all available options, including transparency mechanisms, to ensure that access to supply chains in the Western Hemisphere cannot be exploited by the People’s Republic of China.