United States-Republic of Korea Digital Trade Enforcement Act
United States-Republic of Korea Digital Trade Enforcement Act would authorize U.S. officials to respond to discriminatory digital trade policies adopted by the Republic of Korea (South Korea). The bill creates a framework where the U.S. Trade Representative (USTR) would evaluate Korean laws or regulations that target U.S. online or digital platform operators and impose discriminatory restrictions. If such actions are found to burden U.S. commerce and/or violate trade agreements, the bill authorizes a range of enforcement options, including World Trade Organization dispute proceedings, Section 301 investigations, disputes under the U.S.–Korea Free Trade Agreement (KORUS FTA), or negotiated mitigation agreements to offset impacts on U.S. private entities. The measure is framed by a broader “sense of Congress” that emphasizes the U.S.–Korea strategic and economic partnership, but also expresses concern about discriminatory digital policies and possible friction arising from enforcement actions. In short, the act would give the United States a formal mechanism to scrutinize and, if warranted, respond to Korea’s digital trade policies that are deemed discriminatory against U.S. platforms, with specific timelines for reporting and a menu of potential trade remedies if affirmative determinations are made.
Key Points
- 1Short title: The act may be cited as the United States-Republic of Korea Digital Trade Enforcement Act.
- 2Sense of Congress: Reaffirms the U.S.–ROK strategic and economic partnership, the importance of the U.S.-KORUS Free Trade Agreement, concerns about discriminatory digital policies that could burden U.S. businesses or advantage Chinese competitors, and the preference to avoid provocative enforcement tactics like office raids.
- 3Policy framework: Calls for full enforcement of KORUS FTA terms and, when needed, use of Section 301 authorities to counter discriminatory digital trade policies that disadvantage U.S. companies; emphasizes avoiding discriminatory or targeted enforcement measures.
- 4Report on discriminatory actions (Sec. 4): Within 30 days after Korea enacts or promulgates a law or regulation that designates or targets a U.S. online/digital platform operator and imposes discriminatory business restrictions, the USTR must report to Congress with:
- 5- (1) Whether a U.S. private entity was negatively impacted by the Korean action;
- 6- (2) Whether Korea’s action violates obligations or rights under trade agreements with the United States;
- 7- (3) Whether the action is unjustifiable or discriminatory to U.S. commerce under 301(a) or 301(b) standards.
- 8Possible trade restrictions and remedies (Sec. 5): If the report contains affirmative determinations, the USTR would pursue measures to protect U.S. commerce, including:
- 9- (1) Initiating a dispute under the WTO Dispute Settlement Understanding;
- 10- (2) Conducting a Section 301 investigation;
- 11- (3) Raising a dispute under the U.S.–Korea Free Trade Agreement;
- 12- (4) Negotiating an agreement with Korea to mitigate the impacts on U.S. private entities.
- 13Triggered by discriminatory actions: The enforcement pathway is specifically tied to Korean actions that predesignate or designate U.S. platform operators and impose discriminatory restrictions.