Sec. 2. Findings

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Congress makes the following findings: Expanding benefits to United States workers and businesses, reshoring critical supply chains, and creating United States based manufacturing requires analyzing tariff policies, assessing any negative impacts that tariffs may have on United States businesses and workers, and identifying the most effective policy options to correct those impacts and to revisit tariff treatment, if needed, particularly with respect to manufactured products exported from countries with which the United States has a free trade agreement in effect.

The North American Free Trade Agreement Implementation Act ( Public Law 103–182 ; 107 Stat. 2057) included a restriction, in section 202(a)(2)(A) of that Act, that prevented goods manufactured in foreign-trade zones from receiving preferential tariff treatment under the North American Free Trade Agreement. Title VI of division O of the Consolidated Appropriations Act, 2021 ( Public Law 116–260 ) made a set of technical corrections to the United States-Mexico-Canada Agreement Implementation Act ( 19 U.S.C. 4501 et seq. ) and included the same restriction described in paragraph (2).

United States manufacturers operating in foreign-trade zones believe that that restriction removes parity with their counterparts in the equivalent of foreign-trade zones under Mexico and Canada’s export-promotion programs, which do not have a similar restriction in place. Canadian and Mexican manufacturers already enjoy advantages over United States manufacturers operating in the North American market as a result of— Mexico and Canada’s export-promotion programs and extensive networks of free trade agreements, including with the European Union and Japan; and not being subject to restrictions comparable to the unilateral restrictions on United States-based manufacturing in foreign-trade zones under the United States-Mexico-Canada Agreement Implementation Act, which were carried over from the North American Free Trade Agreement Implementation Act.

Among other things, the advantages described in paragraph

(5)may encourage the location of manufacturing in Canada and Mexico, rather than the United States.

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