The bipartisan bill aims to address national security in the United States.
U.S. Senator Dave McCormick, a Republican of Pennsylvania, has partnered with Democratic Senator Catherine Cortez Masto to introduce the Protecting the USMCA from Harmful Chinese Investment Act.
The bill directs the U.S. Trade Representative to prioritize alignment with Canada and Mexico on foreign investment screening during the joint review of the U.S.-Mexico-Canada Agreement set for 2026.
Lawmakers in Washington share growing concerns relating to the People’s Republic of China.
According to Senators McCormick and Cortez Masto, Chinese companies have significantly expanded supply chain roles and increased manufacturing in Mexico. This has raised concerns over United States national security. Canada is also facing economic threats from the People’s Republic of China.
The proposed legislation is aimed at addressing these national security risks through several methods.
The bill focuses on the importance of trade between the United States, Canada, and Mexico. It establishes a USMCA joint review objective requiring each country to implement a foreign review framework, coordination among USMCA counties to address threats from nonmarket economy investments and directs the U.S. Trade Representative to coordinate with the Treasury and State Departments to provide technical assistance to partners in developing investment security frameworks.
“The Chinese Communist Party has made no secret of its ambition to dominate critical technologies and key infrastructure in our backyard. Canada and Mexico are Pennsylvania and America’s top trading partners. We need a common approach with our neighbors to protect our economies from harmful foreign investment. This must be a top priority during the USMCA joint review,” said Senator McCormick in a press release.
“As Communist China attempts to expand its influence worldwide, it becomes even more important that America and its neighbors have one unified plan to combat their efforts. This bipartisan, commonsense bill will help make sure that the United States, Canada, and Mexico work together to curb the threat of hostile foreign investments,” said Senator Cortez Masto in a statement.
The bill has been introduced in the Senate and has been referred to the Committee on Finance.
