Western Hemisphere Nearshoring Act

Sponsor: Mark E. Green (Republican-TN)January 16, 2025

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Introduced

In Committee

Passed One Chamber

Passed Both Chambers

Signed into Law

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.

Encourages companies to move manufacturing from China to Latin America and the Caribbean, aiming to create jobs and boost trade.

This bill would offer financial help and tax breaks to companies that move their factories from China to countries in Latin America or the Caribbean. It aims to create jobs in those regions and strengthen trade ties, while also reducing the United States' reliance on Chinese manufacturing.

What Would Change

Today, supply chains in the Western Hemisphere often rely heavily on manufacturing in China, and a lack of economic opportunities in Latin America and the Caribbean can lead to migration. This bill would create financial incentives, duty-free trade, and tax benefits for companies that move their factories from China to these nearby countries. It would also change how the DFC operates, prioritizing U.S. businesses and critical industries, and direct the USTR to seek new trade agreements.

Key Provisions

Requires the DFC to use at least 10% of its financing each year to help companies move manufacturing from China to Latin America or the Caribbean.
Lowers interest rates on DFC loans for companies that move manufacturing from China to Latin America or the Caribbean.
Establishes a trust fund, funded by tariffs on goods from China, to pay for DFC assistance under this bill.
Requires the Secretary of Commerce to determine that DFC assistance would not negatively affect U.S. employment.
Prioritizes U.S.-owned businesses and critical industries for DFC support.
Generally blocks the DFC from supporting businesses owned or controlled by foreign governments.

View on Congress.gov

HR 509 · 119th Congress · January 16, 2025 · AI Summary by gemini-2.5-flash · 8/10

Western Hemisphere Nearshoring Act

What Would Change

Key Provisions

Lobbying Activity