Section 1 Short title
This Act may be cited as the “Consistency in Foreign Investment in the United States-Mexico-Canada Agreement Act” or the “CFIUSMCA Act”.
Consistency in Foreign Investment in the United States-Mexico-Canada Agreement Act
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.
Sec. 2 North American alignment on foreign investment review
Sense of Congress— It is the sense of Congress that—
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;
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;
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;
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
the establishment or modification 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—
advance the national security interests of the United States; and
allow for closer coordination between the USMCA countries with respect to shared threats from investments in strategically important economic sectors and critical infrastructure in North America.
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—
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
the establishment of a mechanism for USMCA countries to coordinate to address shared threats from investments in strategically important economic sectors and critical infrastructure in North America that is overseen by the Trade Representative, Secretary of State, and Secretary of the Treasury and provides a forum for each USMCA country to—
implement this mechanism;
enhance communication and cooperation among the USMCA countries related to shared threats from foreign investment;
facilitate the development of consistent foreign investment screening practices and standards among the USMCA countries;
exchange information on shared threats from investments in strategically important economic sectors and critical infrastructure;
notify the other USMCA countries of investments in strategically important economic sectors and critical infrastructure; and
identify, consult, manage, and resolve existing or proposed foreign investments in one USMCA country determined to pose a national security risk to another USMCA country.
Technical assistance— In carrying out subsection (b)(1), 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 or modification of frameworks for reviewing foreign investments for national security risks. With respect to the provision of technical assistance to USMCA countries to support the establishment or modification of frameworks for reviewing foreign investment for national security risks, the Trade Representative shall also consult closely and on a timely basis with appropriate Congressional committees, including the Committee on Ways and Means of the House of Representatives and the Committee on Finance of the Senate.
Definitions— In this section:
Critical infrastructure— The term critical infrastructure means, in the context of a particular covered control transaction, systems and assets, whether physical or virtual, so vital to the United States that the incapacity or destruction of such systems or assets would have a debilitating impact on national security.
Foreign investment— The term foreign investment has the meaning given the terms covered investment, covered investment critical infrastructure, and covered transaction in sections 800.211 through 800.213 of title 31, Code of Federal Regulations.
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).
Trade Representative— The term Trade Representative means the United States Trade Representative.
National security risk— The term national security risk has the meaning given that term for purposes of any determination under section 721 of the Defense Production Act of 1950, including as provided in Executive Order 14083 (87 Fed. Reg. 57369; relating to ensuring robust consideration of evolving national security risks by the Committee on Foreign Investment in the United States).
Strategically important economic sectors— The term strategically important economic sectors includes—
advanced computing;
advanced engineering materials;
advanced gas turbine engine technologies;
advanced and networked sensing and signature management;
advanced manufacturing;
artificial intelligence;
biotechnologies;
critical technologies, as such term is defined in section 800.215 of title 31, Code of Federal Regulations;
data privacy, data security, and cybersecurity technologies;
directed energy;
highly automated, autonomous, and uncrewed systems, and robotics;
human-machine interfaces;
hypersonics;
integrated communication and networking technologies;
positioning, navigation, and timing technologies;
quantum information and enabling technologies;
semiconductors and microelectronics; and
space technologies and systems.
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).
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)).