The ANTE Act would add a new tool for the United States Trade Representative (USTR) to counter evasion of tariffs imposed on nonmarket economy (NME) countries. Specifically, it creates a new Section 311 in the Trade Act of 1974 that allows the USTR to investigate whether an entity from an NME country is investing in a third country to avoid duties imposed under section 301. If the USTR finds evasion, it may impose remedial measures (including duties) on goods produced in the third country by the covered entity, potentially equal to the value of the duty applied to the NME product under section 301. The act outlines timelines for inquiries, criteria for imposing measures, and conditions for duration and reporting to Congress. It aims to deter tariff evasion by moving production to or through third countries and gives the USTR broad authority to act unilaterally, under presidential direction, when warranted.
Key Points
- 1Creates a new authority (Section 311) for the USTR to investigate whether a covered entity from an NME country is establishing or has established investments in a third country to avoid section 301 tariffs.
- 2If evasion is affirmatively found, the USTR may impose remedial measures on goods produced in the third country by the covered entity, including duties not less than the value of the relevant NME duty.
- 3The timing allows action during an ongoing 301 investigation (if third-country production has begun) or prospectively if the entity plans to establish production in the third country.
- 4Inquiries can be self-initiated or requested by interested parties or Congress; the process includes deadlines (e.g., a 45-day initiation determination and a 180-day evasion determination).
- 5If a measure is imposed, it lasts as long as the 301 remedy remains in effect for the NME country or as long as the third-country investment remains under the NME country’s control, whichever ends sooner; if not imposed, the USTR must justify the decision to Congress, including social and economic impacts.