Protecting the USMCA from Harmful Chinese Investment Act
This bill, titled the Protecting the USMCA from Harmful Chinese Investment Act, directs the United States Trade Representative (USTR) to push for stronger North American alignment on foreign investment review during the next joint review under the USMCA (U.S.-Mexico-Canada Agreement). In practical terms, it urges Canada and Mexico to establish investment-screening frameworks for national security risks that are similar to the U.S. approach under the Defense Production Act (DPA) §721, and to create a mechanism for coordinated action against investments by nonmarket economy countries (notably including China). The bill also authorizes technical assistance from USTR, Treasury, and State to help the USMCA partners develop these frameworks. The goal is to bolster shared national security interests and strengthen the North American supply chain by ensuring more uniform and robust screening of foreign investments across the three countries, especially in critical sectors and infrastructure.
Key Points
- 1It is the Sense of Congress that the United States, Canada, and Mexico have deep economic ties and that robust, closely aligned investment review mechanisms are important for national security and for protecting North American supply chains from risks posed by foreign investments by nonmarket economy countries (e.g., China).
- 2Joint Review Negotiation Objective: In the first joint review after enactment, the Trade Representative must advocate for:
- 3- (a) Each USMCA country to implement a legislative/regulatory framework for reviewing foreign investments for national security risks that is similar to the framework under section 721 of the Defense Production Act of 1950.
- 4- (b) The creation of a mechanism for USMCA countries to coordinate on shared threats from such investments.
- 5Technical Assistance: The USTR must work with the Secretary of the Treasury and the Secretary of State to provide technical assistance to USMCA partners to help establish these investment-screening frameworks.
- 6Definitions: The bill defines key terms, including “joint review,” “nonmarket economy country,” “technical assistance,” “Trade Representative,” “USMCA,” and “USMCA country,” to clarify scope and procedures.
- 7Legislative framing: The bill is a Senate proposal introduced with a formal short title and directed to the Senate Finance Committee; it sets policy goals and negotiation objectives for the next joint USMCA review.