Western Hemisphere Nearshoring Act
Western Hemisphere Nearshoring Act
Plain Language Summary
# Western Hemisphere Nearshoring Act Summary **What It Would Do:** This bill aims to encourage American companies to move their manufacturing operations from China to countries in Latin America and the Caribbean instead. To incentivize these relocations, the bill would require the U.S. International Development Finance Corporation to spend at least 10% of its budget helping companies pay for moving costs, training workers, and building new facilities in these regions. The bill would also give preferential trade treatment to products made by participating companies.
Importantly, the funding would come from tariffs (taxes) that the U.S. currently collects on Chinese-made goods. **Key Provisions & Who It Affects:** Companies that move operations would need to meet certain conditions, such as creating a minimum number of jobs in their new location and ensuring they won't be controlled by China, Russia, or other hostile governments. The bill also directs the President to expand trade and nuclear energy agreements with Latin American and Caribbean nations. This would primarily affect large corporations with manufacturing operations in China, as well as workers and communities in Latin America and the Caribbean who could benefit from new jobs. **Current Status:** The bill is currently in committee (HR 509 in the 119th Congress), meaning it has not yet been debated or voted on by the full House of Representatives.
CRS Official Summary
Western Hemisphere Nearshoring ActThis bill provides assistance for corporations to relocate operations from China to Latin America or Caribbean (LAC) countries and specifies actions to expand trade and nuclear energy agreements with LAC countries. Specifically, the U.S. International Development Finance Corporation must use at least 10% of its funding to finance moving, workforce development, and facility construction costs associated with such relocations. Tariffs collected by the United States on goods manufactured in China shall be used to fund such assistance. The President must provide duty-free or other preferential treatment for goods and services produced in a LAC country by a corporation that received relocation assistance under this bill.A corporation must meet certain conditions to receive these benefits, including creating sufficient jobs in the LAC country and guaranteeing that the corporation will not be controlled by China, Russia, or other foreign adversary government. State-owned enterprises are not eligible. Additionally, the Office of the U.S. Trade Representative must start trade negotiations with each LAC country that does not have a free trade agreement with the United States if the country meets certain conditions (such as reducing economic reliance on China). The President is authorized to start negotiations with a LAC country for the sale of nuclear reactors if these same conditions are met and the sale does not threaten U.S. national security. Neither Cuba nor Venezuela qualify as a LAC country unless the Department of State certifies that the country has taken certain actions, including holding free and fair elections.
Latest Action
Referred to the Committee on Ways and Means, and in addition to the Committee on Foreign Affairs, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.