U.S. Rep. Jodey Arrington (R-TX) on Dec. 15 sponsored bipartisan legislation that would prohibit foreign adversaries, particularly China, from using Mexico and Canada as backdoors to move goods into the United States under the U.S.-Mexico-Canada Agreement (USMCA).
“Mexico’s weak investment standards have created a backdoor for China to move products into the United States tariff-free and allow CCP-aligned [Chinese Communist Party] entities to gain a foothold in industries vital to our national security,” said Rep. Arrington.
The congressman introduced the Consistency in Foreign Investment in the United States-Mexico-Canada Agreement (CFIUSMCA) Act, H.R. 6707, alongside four original cosponsors, including U.S. Reps. John Moolenaar (R-MI) and Brad Schneider (D-IL).
If enacted, H.R. 6707 would give U.S. trade officials clear authority to push for stronger and more coordinated investment screening requirements throughout North America during the upcoming six-year review of USMCA, according to a bill summary provided by Rep. Arrington’s office.
“My Consistency in Foreign Investment in the USMCA Act will ensure our North American trading partners meet the same national security standards we set for ourselves and keep malign foreign investments out of America’s backyard,” Rep. Arrington said.
Specifically, the legislation would require that Mexico establish a foreign investment review mechanism consistent with the U.S. system, and would support the U.S. Trade Representative in establishing a shared mechanism for the U.S., Canada, and Mexico to coordinate in addressing shared threats to strategically important economic sectors and critical infrastructure in North America, the summary says.
“By guarding against national security threats posed by foreign investments, strengthening an alignment between the U.S., Canada, and Mexico, the Consistency in Foreign Investment in the United States-Mexico-Canada Agreement Act will ensure stronger protections for American workers, consumers, and small businesses,” said Rep. Schneider, the bill’s lead original cosponsor. “Creating a CFIUS-like mechanism in both countries will encourage more closely monitored screening of foreign investments and reinforce the importance of North American coordination when reviewing for potential national security risks.”
The North American Die Casting Association, the American Mold Builders Association, and FDD Action endorsed the measure, which has been referred for consideration to the U.S. House Ways and Means Committee.