19 U.S.C. § 4421 — Enhancement of engagement on currency

Page 1113 TITLE 19—CUSTOMS DUTIES § 4421 Congress a report on the results of the study conducted under paragraph (1). (g) Definitions In this section: (1) Trade Policy Committee; TPC The terms ‘‘Trade Policy Committee’’ and ‘‘TPC’’ mean the interagency organization es- tablished under section 1872 of this title. (2) WTO The term ‘‘WTO’’ means the World Trade Or- ganization. (3) WTO agreement The term ‘‘WTO Agreement’’ has the mean- ing given that term in section 3501(9) of this title. (4) WTO agreements The term ‘‘WTO Agreements’’ means the WTO Agreement and agreements annexed to that Agreement. (Pub. L. 114–125, title VI, § 611, Feb. 24, 2016, 130 Stat. 192.) SUBCHAPTER VI—ENGAGEMENT ON CUR- RENCY EXCHANGE RATE AND ECONOMIC POLICIES § 4421. Enhancement of engagement on currency exchange rate and economic policies with certain major trading partners of the United States (a) Major trading partner report (1) In general Not later than 180 days after February 24, 2016, and not less frequently than once every 180 days thereafter, the Secretary shall submit to the appropriate committees of Congress a report on the macroeconomic and currency ex- change rate policies of each country that is a major trading partner of the United States. (2) Elements (A) In general Each report submitted under paragraph (1) shall contain— (i) for each country that is a major trad- ing partner of the United States— (I) that country’s bilateral trade bal- ance with the United States; (II) that country’s current account bal- ance as a percentage of its gross domes- tic product; (III) the change in that country’s cur- rent account balance as a percentage of its gross domestic product during the 3- year period preceding the submission of the report; (IV) that country’s foreign exchange reserves as a percentage of its short- term debt; and (V) that country’s foreign exchange re- serves as a percentage of its gross domes- tic product; and (ii) an enhanced analysis of macro- economic and exchange rate policies for each country that is a major trading part- ner of the United States that has— (I) a significant bilateral trade surplus with the United States; (II) a material current account surplus; and (III) engaged in persistent one-sided intervention in the foreign exchange market. (B) Enhanced analysis Each enhanced analysis under subpara- graph (A)(ii) shall include, for each country with respect to which an analysis is made under that subparagraph— (i) a description of developments in the currency markets of that country, includ- ing, to the greatest extent feasible, devel- opments with respect to currency inter- ventions; (ii) a description of trends in the real ef- fective exchange rate of the currency of that country and in the degree of under- valuation of that currency; (iii) an analysis of changes in the capital controls and trade restrictions of that country; and (iv) patterns in the reserve accumulation of that country. (3) Assessment factors Not later than 90 days after February 24, 2016, the Secretary shall publicly describe the factors used to assess under paragraph (2)(A)(ii) whether a country has a significant bilateral trade surplus with the United States, has a material current account surplus, and has engaged in persistent one-sided interven- tion in the foreign exchange market. (b) Engagement on exchange rate and economic policies (1) In general The President, through the Secretary, shall commence enhanced bilateral engagement with each country for which an enhanced anal- ysis of macroeconomic and currency exchange rate policies is included in the report sub- mitted under subsection (a), in order to, as ap- propriate— (A) urge implementation of policies to ad- dress the causes of the undervaluation of its currency, its significant bilateral trade sur- plus with the United States, and its material current account surplus, including under- valuation and surpluses relating to exchange rate management; (B) express the concern of the United States with respect to the adverse trade and economic effects of that undervaluation and those surpluses; (C) advise that country of the ability of the President to take action under sub- section (c); and/or (D) develop a plan with specific actions to address that undervaluation and those sur- pluses. (2) Waiver (A) In general The Secretary may waive the requirement under paragraph (1) to commence enhanced bilateral engagement with a country if the Secretary determines that commencing en- Page 1114 TITLE 19—CUSTOMS DUTIES § 4421 hanced bilateral engagement with the coun- try— (i) would have an adverse impact on the United States economy greater than the benefits of such action; or (ii) would cause serious harm to the na- tional security of the United States. (B) Certification and report The Secretary shall promptly certify to Congress a determination under subpara- graph (A) and promptly submit to Congress a report that describes in detail the reasons for the Secretary’s determination under sub- paragraph (A). (c) Remedial action (1) In general If, on or after the date that is one year after the commencement of enhanced bilateral en- gagement by the President, through the Sec- retary, with respect to a country under sub- section (b)(1), the Secretary determines that the country has failed to adopt appropriate policies to correct the undervaluation and sur- pluses described in subsection (b)(1)(A) with respect to that country, the President shall take one or more of the following actions: (A) Prohibit the United States Inter- national Development Finance Corporation from approving any new financing (including any insurance, reinsurance, or guarantee) with respect to a project located in that country on and after such date. (B) Except as provided in paragraph (3), and pursuant to paragraph (4), prohibit the Federal Government from procuring, or en- tering into any contract for the procurement of, goods or services from that country on and after such date. (C) Instruct the United States Executive Director of the International Monetary Fund to call for additional rigorous surveillance of the macroeconomic and exchange rate poli- cies of that country and, as appropriate, for- mal consultations on findings of currency manipulation. (D) Instruct the United States Trade Rep- resentative to take into account, in con- sultation with the Secretary, in assessing whether to enter into a bilateral or regional trade agreement with that country or to ini- tiate or participate in negotiations with re- spect to a bilateral or regional trade agree- ment with that country, the extent to which that country has failed to adopt appropriate policies to correct the undervaluation and surpluses described in subsection (b)(1)(A). (2) Waiver (A) In general The President may waive the requirement under paragraph (1) to take remedial action if the President determines that taking re- medial action under paragraph (1) would— (i) have an adverse impact on the United States economy greater than the benefits of taking remedial action; or (ii) would cause serious harm to the na- tional security of the United States. (B) Certification and report The President shall promptly certify to Congress a determination under subpara- graph (A) and promptly submit to Congress a report that describes in detail the reasons for the President’s determination under sub- paragraph (A). (3) Exception The President may not apply a prohibition under paragraph (1)(B) in a manner that is in- consistent with United States obligations under international agreements. (4) Consultations (A) Office of Management and Budget Before applying a prohibition under para- graph (1)(B), the President shall consult with the Director of the Office of Manage- ment and Budget to determine whether such prohibition would subject the taxpayers of the United States to unreasonable cost. (B) Congress The President shall consult with the ap- propriate committees of Congress with re- spect to any action the President takes under paragraph (1)(B), including whether the President has consulted as required under subparagraph (A). (d) Definitions In this section: (1) Appropriate committees of Congress The term ‘‘appropriate committees of Con- gress’’ means— (A) the Committee on Banking, Housing, and Urban Affairs and the Committee on Fi- nance of the Senate; and (B) the Committee on Financial Services and the Committee on Ways and Means of the House of Representatives. (2) Country The term ‘‘country’’ means a foreign coun- try, dependent territory, or possession of a for- eign country, and may include an association of 2 or more foreign countries, dependent ter- ritories, or possessions of countries into a cus- toms union outside the United States. (3) Real effective exchange rate The term ‘‘real effective exchange rate’’ means a weighted average of bilateral ex- change rates, expressed in price-adjusted terms. (4) Secretary The term ‘‘Secretary’’ means the Secretary of the Treasury. (Pub. L. 114–125, title VII, § 701, Feb. 24, 2016, 130 Stat. 195; Pub. L. 115–254, div. F, title VI, § 1470(h), Oct. 5, 2018, 132 Stat. 3516.) Editorial Notes AMENDMENTS 2018—Subsec. (c)(1)(A). Pub. L. 115–254 substituted ‘‘United States International Development Finance Corporation’’ for ‘‘Overseas Private Investment Cor- poration’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2018 AMENDMENT Amendment by Pub. L. 115–254 effective at the end of the transition period, as defined in section 9681 of Title Page 1115 TITLE 19—CUSTOMS DUTIES § 4422 22, Foreign Relations and Intercourse, see section 1470(w) of Pub. L. 115–254, set out as a note under sec- tion 905 of Title 2, The Congress. Executive Documents EX. ORD. NO. 13733. DELEGATION OF CERTAIN AUTHORI- TIES AND ASSIGNMENT OF CERTAIN FUNCTIONS UNDER THE TRADE FACILITATION AND TRADE ENFORCEMENT ACT OF 2015 Ex. Ord. No. 13733, July 22, 2016, 81 F.R. 49515, pro- vided: By the authority vested in me as President by the Constitution and the laws of the United States of America, including the Trade Facilitation and Trade Enforcement Act of 2015 (the ‘‘Act’’) (Public Law 114–125) and section 301 of title 3, United States Code, I hereby order as follows: SECTION 1. Authorities and Functions under the Act. (a) The functions of the President under section 2313A(b) of the Export Enhancement Act of 1988, as added by sec- tion 504 of the Act, are assigned to the Secretary of Commerce. In carrying out its functions, the State and Federal Export Promotion Coordination Working Group established by the Secretary of Commerce under this section shall also coordinate with local and munic- ipal governments representing regionally diverse areas. (b) The functions of the President under section 909(d) of the Act are assigned to the Secretary of State, in consultation with other relevant Federal agencies. (c) The functions of the President under section 915(d) of the Act are assigned to the Administrator of the United States Agency for International Development, in consultation with the Secretary of State and the United States Trade Representative (U.S. Trade Rep- resentative). (d) The functions of the President under section 915(e) of the Act are assigned to the U.S. Trade Representa- tive, in consultation with the Secretary of State. SEC. 2. Engagement on Currency Exchange Rate and Economic Policies. (a) Prior to undertaking an enhanced analysis of a country pursuant to section 701(a)(2)(A)(ii) of the Act, the Secretary of the Treasury shall seek the views of the U.S. Trade Representative on changes in trade restrictions in that country. (b) In exercising the functions under section 701(b)(2)(A) of the Act, the Secretary of the Treasury shall consult with the Secretary of State in making any determination that commencing enhanced bilat- eral engagement with a country would cause serious harm to the national security of the United States. (c) If the Secretary of the Treasury determines, pur- suant to section 701(c)(1) of the Act, that a country has failed to adopt appropriate policies to correct the undervaluation and surpluses described in section 701(b)(1)(A) of the Act with respect to that country, the Assistant to the President for Economic Policy, in con- sultation with the Secretary of the Treasury, the U.S. Trade Representative, the Secretary of State, and the Secretary of Commerce, shall make a recommendation to the President regarding which of the actions set forth in sections 701(c)(1)(A) through (D) of the Act the President should take, or whether the President should waive, pursuant to section 701(c)(2) of the Act, the re- quirement to take remedial action. SEC. 3. General Provisions. (a) In exercising authority delegated by or performing functions assigned in this order, the Secretaries of State, the Treasury, and Com- merce and the U.S. Trade Representative and their delegees: (i) shall ensure that all actions taken by them are consistent with the President’s constitutional author- ity to (A) conduct the foreign affairs of the United States, including the commencement, conduct, and ter- mination of negotiations with foreign countries and international organizations; (B) withhold information the disclosure of which could impair the foreign rela- tions, the national security, the deliberative processes of the Executive, or the performance of the Executive’s constitutional duties; (C) recommend for congressional consideration such measures as the President may judge necessary or expedient; and (D) supervise the ex- ecutive branch; and (ii) may redelegate authority delegated by this order and may further assign functions assigned by this order to officers of any other department or agency within the executive branch to the extent permitted by law, including section 301 of title 3, United States Code, and such redelegation or further assignment shall be pub- lished in the Federal Register. (b) This order shall be implemented consistent with applicable law and subject to the availability of appro- priations. (c) This order is not intended to, and does not, create any right or benefit, substantive or procedural, enforce- able at law or in equity by any party against the United States, its departments, agencies, or entities, its officers, employees, or agents, or any other person. BARACK OBAMA. § 4422. Advisory Committee on International Ex- change Rate Policy (a) Establishment (1) In general There is established an Advisory Committee on International Exchange Rate Policy (in this section referred to as the ‘‘Committee’’). (2) Duties The Committee shall be responsible for ad- vising the Secretary of the Treasury with re- spect to the impact of international exchange rates and financial policies on the economy of the United States. (b) Membership (1) In general The Committee shall be composed of 9 mem- bers as follows, none of whom shall be employ- ees of the Federal Government: (A) Three members shall be appointed by the President pro tempore of the Senate, upon the recommendation of the chairmen and ranking members of the Committee on Banking, Housing, and Urban Affairs and the Committee on Finance of the Senate. (B) Three members shall be appointed by the Speaker of the House of Representatives, upon the recommendation of the chairmen and ranking members of the Committee on Financial Services and the Committee on Ways and Means of the House of Representa- tives. (C) Three members shall be appointed by the President. (2) Qualifications Members shall be selected under paragraph (1) on the basis of their objectivity and dem- onstrated expertise in finance, economics, or currency exchange. (3) Terms (A) In general Members shall be appointed for a term of 2 years or until the Committee terminates. (B) Reappointment A member may be reappointed to the Com- mittee for additional terms. (4) Vacancies Any vacancy in the Committee shall not af- fect its powers, but shall be filled in the same manner as the original appointment.