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Western Hemisphere Nearshoring Act
2/13/2025, 6:53 AM
Summary of Bill HR 509
The bill proposes a series of measures to decrease the country's dependency on Chinese manufacturing. This includes providing incentives for businesses to bring manufacturing back to the United States, investing in domestic manufacturing capabilities, and promoting partnerships with other countries to diversify the supply chain. By reducing reliance on Chinese manufacturing, the bill aims to strengthen national security and protect American jobs.
In addition, the bill seeks to address the issue of migration due to lost regional economic opportunities. This includes investing in infrastructure and economic development in regions that have been disproportionately affected by job losses, providing job training and education programs to help individuals transition to new industries, and promoting entrepreneurship and small business growth in these areas. Overall, Bill 119 HR 509 aims to decrease dependency on Chinese manufacturing and prevent migration due to lost regional economic opportunities. By addressing these issues, the bill seeks to strengthen the American economy, protect national security, and create opportunities for individuals in regions that have been impacted by job losses.
Congressional Summary of HR 509
Western Hemisphere Nearshoring Act
This 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.
