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Title I — Approval of, and General Provisions Relating to, the Usmca

116th Congress · Approved Jan 29, 2020 · 134 Stat. 11 · Lineage

TITLE I Approval of, and General Provisions Relating to, the Usmca

SEC. 101. Approval and Entry into Force of the Usmca.

(a)
Approval of USMCA and Statement of Administrative Action.— Pursuant to section 106 of the Bipartisan Congressional Trade Priorities and Accountability Act of 2015 (19 U.S.C. 4205) and section 151 of the Trade Act of 1974 (19 U.S.C. 2191), Congress approves—
(1)
the Protocol Replacing the North American Free Trade Agreement with the Agreement between the United States of America, the United Mexican States, and Canada, done at Buenos Aires on November 30, 2018, as submitted to Congress on December 13, 2019;
(2)
the Agreement between the United States of America, the United Mexican States, and Canada, attached as an Annex to the Protocol, as amended by the Protocol of Amendment to the Agreement between the United States of America, the United Mexican States, and Canada, done at Mexico City on December 10, 2019, as submitted to Congress on December 13, 2019; and
(3)
the statement of administrative action proposed to implement that Agreement, as submitted to Congress on December 13, 2019.
(b)
Conditions for Entry Into Force of the Agreement.— The President is authorized to provide for the USMCA to enter into force with respect to Canada and Mexico not earlier than 30 days after the date on which the President submits to Congress the written notice required by section 106(a)(1)(G) of the Bipartisan Congressional Trade Priorities and Accountability Act of 2015 (19 U.S.C. 4205(a)(1)(G)), which shall include the date on which the USMCA will enter into force.

SEC. 102. Relationship of the Usmca to United States and State Law.

(a)
Relationship of USMCA to United States Law.—
(1)
United states law to prevail in conflict.— No provision of the USMCA, nor the application of any such provision to any person or circumstance, which is inconsistent with any law of the United States, shall have effect.
(2)
Construction.— Nothing in this Act shall be construed—
(A)
to amend or modify any law of the United States, or
(B)
to limit any authority conferred under any law of the United States,

unless specifically provided for in this Act.

(b)
Relationship of USMCA to State Law.—
(1)
Legal challenge.— No State law, or the application thereof, may be declared invalid as to any person or circumstance on the ground that the provision or application is inconsistent with the USMCA, except in an action brought by the United States for the purpose of declaring such law or application invalid.
(2)
Definition of state law.— For purposes of this subsection, the term “State law” includes—
(A)
any law of a political subdivision of a State; and
(B)
any State law regulating or taxing the business of insurance.
(c)
Effect of USMCA With Respect to Private Remedies.— No person other than the United States—
(1)
shall have any cause of action or defense under the USMCA or by virtue of congressional approval thereof; or
(2)
may challenge, in any action brought under any provision of law, any action or inaction by any department, agency, or other instrumentality of the United States, any State, or any political subdivision of a State, on the ground that such action or inaction is inconsistent with the USMCA.

SEC. 103. Implementing Actions in Anticipation of Entry into Force; Initial Regulations; Tariff Proclamation Authority.

(a)
Implementing Actions.—
(1)
Proclamation authority.— After the date of the enactment of this Act—
(A)
the President may proclaim such actions, and
(B)
other appropriate officers of the United States Government may prescribe such regulations,

as may be necessary to ensure that any provision of this Act, or amendment made by this Act, that takes effect on the date on which the USMCA enters into force is appropriately implemented on such date, but no such proclamation or regulation may have an effective date earlier than the date on which the USMCA enters into force.

(2)
Effective date of certain proclaimed actions.— Any action proclaimed by the President under the authority of this Act that is not subject to the consultation and layover provisions under section 104 may not take effect before the 15th day after the date on which the text of the proclamation is published in the Federal Register.
(3)
Waiver of 15-day restriction.— The 15-day restriction contained in paragraph (2) on the taking effect of proclaimed actions is waived to the extent that the application of such restriction would prevent the taking effect on the date on which the USMCA enters into force of any action proclaimed under this section.
(b)
Initial Regulations.—
(1)
In general.— Except as provided by paragraph (2) or (3), initial regulations necessary or appropriate to carry out the actions required by or authorized under this Act or proposed in the statement of administrative action approved under section 101(a)(2) to implement the USMCA shall, to the maximum extent feasible, be prescribed within 1 year after the date on which the USMCA enters into force.
(2)
Uniform regulations.— Interim or initial regulations to implement the Uniform Regulations regarding rules of origin provided for under article 5.16 of the USMCA shall be prescribed not later than the date on which the USMCA enters into force.
(3)
Implementing actions with effective dates after entry into force.— In the case of any implementing action that takes effect on a date after the date on which the USMCA enters into force, initial regulations to carry out that action shall, to the maximum extent feasible, be prescribed within 1 year after such effective date.
(c)
Tariff Modifications.—
(1)
Tariff modifications provided for in the usmca.— The President may proclaim—
(A)
such modifications or continuation of any duty,
(B)
such continuation of duty-free or excise treatment, or
(C)
such additional duties,

as the President determines to be necessary or appropriate to carry out or apply articles 2.4, 2.5, 2.7, 2.8, 2.9, 2.10, 6.2, and 6.3, the Schedule of the United States to Annex 2–B, including the appendices to that Annex, Annex 2–C, and Annex 6–A, of the USMCA.

(2)
Other tariff modifications.— Subject to the consultation and layover provisions of section 104, the President may proclaim—
(A)
such modifications or continuation of any duty,
(B)
such modifications as the United States may agree to with a USMCA country regarding the staging of any duty treatment set forth in the Schedule of the United States to Annex 2–B of the USMCA, including the appendices to that Annex,
(C)
such continuation of duty-free or excise treatment, or
(D)
such additional duties,

as the President determines to be necessary or appropriate to maintain the general level of reciprocal and mutually advantageous concessions with respect to a USMCA country provided for by the USMCA.

(3)
Conversion to ad valorem rates.— For purposes of paragraphs (1) and (2), with respect to any good for which the base rate in the Schedule of the United States to Annex 2–B of the USMCA is a specific or compound rate of duty, the President shall substitute for the base rate an ad valorem rate that the President determines to be equivalent to the base rate.
(4)
Tariff-rate quotas.— In implementing the tariff-rate quotas set forth in the Schedule of the United States to Annex 2–B of the USMCA, the President shall take such actions as may be necessary to ensure that imports of agricultural goods do not disrupt the orderly marketing of agricultural goods in the United States.
(5)
Presidential proclamation authority relating to rules of origin.—
(A)
In general.— The President may proclaim, as part of the HTS—
(i)
the provisions set forth in Annex 4–B of the USMCA;
(ii)
the provisions set forth in paragraph 2 of article 3.A.6 of Annex 3–A of the USMCA;
(iii)
the provisions set forth in paragraph 5 of Annex 3–B of the USMCA;
(iv)
the provisions set forth in paragraphs 14(b), 14(c), and 15(e) of Section B of Appendix 2 to Annex 2–B of the USMCA; and
(v)
any additional subordinate category that is necessary to carry out section 202 and section 202A consistent with the USMCA.
(B)
Modifications.—
(i)
In general.— Subject to the consultation and layover provisions of section 104, the President may proclaim modifications to the provisions proclaimed under the authority of subparagraph (A), other than the provisions of chapters 50 through 63 of the USMCA.
(ii)
Special rule for textiles.— Notwithstanding clause (i), and subject to the consultation and layover provisions of section 104, the President may proclaim—
(I)
such modifications to the provisions proclaimed under the authority of subparagraph (A) as are necessary to implement an agreement with one or more USMCA countries pursuant to article 6.4 of the USMCA; and
(II)
before the end of the 1-year period beginning on the date on which the USMCA enters into force, modifications to correct any typographical, clerical, or other nonsubstantive technical error regarding the provisions of chapters 50 through 63 of the USMCA.

SEC. 104. Consultation and Layover Provisions for, and Effective Date of, Proclaimed Actions.

If a provision of this Act provides that the implementation of an action by the President by proclamation is subject to the consultation and layover requirements of this section, that action may be proclaimed only if—
(1)
the President has obtained advice regarding the proposed action from—
(A)
the appropriate advisory committees established under section 135 of the Trade Act of 1974 (19 U.S.C. 2155); and
(B)
the International Trade Commission, which shall hold a public hearing on the proposed action before providing advice regarding the proposed action;
(2)
the President has submitted to the Committee on Finance of the Senate and the Committee on Ways and Means of the House of Representatives a report that sets forth—
(A)
the proposed action and the reasons therefor; and
(B)
the advice obtained under paragraph (1);
(3)
a period of 60 calendar days, beginning on the first day on which the requirements set forth in paragraphs (1) and (2) have been met, has expired; and
(4)
the President has consulted with the committees referred to in paragraph (2) regarding the proposed action during the period referred to in paragraph (3).

SEC. 105. Administration of Dispute Settlement Proceedings.

(a)
United States Section of Secretariat.—
(1)
Establishment or designation of office.— The President is authorized to establish or designate within the Department of Commerce an office to serve as the United States Section of the Secretariat established under article 30.6 of the USMCA.
(2)
Functions and administrative assistance.— The office established or designated under paragraph (1), subject to the oversight of the interagency group established under section 411(c)(2), shall—
(A)
carry out its functions within the Secretariat to facilitate the operation of the USMCA, including the operation of section D of chapter 10 and chapter 31 of the USMCA; and
(B)
provide administrative assistance to—
(i)
panels established under chapter 31 of the USMCA, including under Annex 31–A (relating to the Facility-Specific Rapid Response Labor Mechanism);
(ii)
technical advisers and experts provided for under chapter 31 of the USMCA;
(iii)
binational panels and extraordinary challenge committees established under section D of chapter 10 of the USMCA; and
(iv)
binational panels and extraordinary challenge committees established under NAFTA for matters covered by article 34.1 of the USMCA (relating to transition from NAFTA).
(3)
Treatment of office under freedom of information act.— The office established or designated under paragraph (1) shall not be considered an agency for purposes of section 552 of title 5, United States Code.
(b)
Authorization of Appropriations.— There are authorized to be appropriated for each fiscal year after fiscal year 2020 to the Department of Commerce $2,000,000 for—
(1)
the operations of the office established or designated under subsection (a)(1); and
(2)
the payment of the United States share of the expenses of—
(A)
panels established under chapter 31 of the USMCA, including under Annex 31–A (relating to the Facility-Specific Rapid Response Labor Mechanism);
(B)
binational panels and extraordinary challenge committees established under section D of chapter 10 of the USMCA; and
(C)
binational panels and extraordinary challenge committees established under NAFTA for matters covered by article 34.1 of the USMCA (relating to transition from NAFTA).
(c)
Reimbursement of Certain Expenses.— If the Canadian Section or the Mexican Section of the Secretariat provides funds to the United States Section during any fiscal year as reimbursement for expenses in connection with dispute settlement proceedings under section D of chapter 10 or chapter 31 of the USMCA, or under chapter 19 of NAFTA, the United States Section may, notwithstanding section 3302 of title 31, United States Code, retain and use such funds to carry out the functions described in subsection (a)(2).

SEC. 106. Trade Representative Authority.

If a country (other than the United States) that has signed the USMCA does not enact implementing legislation, the Trade Representative is authorized to enter into negotiations with the other country that has signed the USMCA to consider how the applicable provisions of the USMCA can come into force with respect to the United States and that other country as promptly as possible.

SEC. 107. Effective Date.

(a)
In General.— Sections 1 through 3 and this title (other than section 103(c)) shall take effect on the date of the enactment of this Act.
(b)
Proclamation Authority.— Section 103(c) shall take effect on the date on which the USMCA enters into force.