ANTE Act
The ANTE Act, officially titled the Axing Nonmarket Tariff Evasion Act, would add a new tool to the United States Trade Representative’s (USTR) authority under the Trade Act of 1974. It allows USTR to investigate whether a “covered entity” that is tied to a nonmarket economy country is establishing or planning to establish investments in a third country to avoid duties imposed under Section 301. If evasion is found, the USTR could impose remedial measures (most notably duties) on goods produced in the third country by that entity, with a value at least equal to the duty the nonmarket economy country would face under Section 301. The Act also creates process and definitional rules for conducting inquiries, choosing remedies, and determining when a measure applies, including timelines and duration. The aim is to close loopholes used by nonmarket economy countries to circumvent U.S. tariffs by shifting production to third countries.
Key Points
- 1New authority and objective: Adds Section 311 to the Trade Act of 1974, authorizing the USTR to pursue remedial measures against entities from nonmarket economy countries that evade or may evade duties by investing in third countries to produce goods subject to Section 301 duties.
- 2Remedial measures and scope: If an affirmative finding is made, the USTR may impose a remedial measure (such as a duty) on goods produced in the third country by the covered entity, with a duty value not less than the corresponding Section 301 duty for the nonmarket economy country.
- 3Timing and production status: Remedies can be applied during an ongoing 301 investigation if the third-country production has begun, or prospectively if the entity plans to establish such production.
- 4Inquiries and process: Inquiries can be self-initiated or requested by interested parties or Congress. The USTR must determine within 45 days whether an inquiry is warranted, and must issue an affirmative evasion finding within 180 days of that determination if evasion is present.
- 5Additional measures and transparency: The USTR may impose additional unilateral measures on the covered entity and third-country goods based on the inquiry, with justification to Congress if no measure is imposed (including social and economic impact analysis).
- 6Duration and linkage to other actions: Any measure would last as long as the Section 301 action remains in effect or as long as the third-country investment remains under the control of the nonmarket economy country, whichever ends sooner.
- 7Definitions: The bill defines “covered entity,” “nonmarket economy country,” and “control,” tying the term “nonmarket economy” to the existing Tariff Act criteria (section 771(18)) and the Special 301 Priority Watch List. It also uses the CFR-based definition of “control.”
- 8Administrative note: The bill would add a new Sec. 311 to the Trade Act’s table of contents to reflect this new mechanism.