# Western Hemisphere Nearshoring Act - Plain Language Summary

## What This Bill Does

This bill aims to move manufacturing away from China and toward Latin America and the Caribbean. It does this by offering U.S. government financial support to companies willing to relocate their operations from China to countries in the Western Hemisphere. The bill is based on the idea that creating economic opportunities in Latin America and the Caribbean will reduce migration to the United States and decrease American dependence on Chinese manufacturing.

## Who Benefits and Who Is Affected

**Primary beneficiaries:**
- U.S. companies looking to relocate manufacturing from China to Latin America or the Caribbean
- Workers in Latin America and the Caribbean who would gain new job opportunities
- American workers (theoretically, through reduced China dependence and new supply chains)

**Others affected:**
- U.S. taxpayers (who would fund the financial assistance)
- Latin American and Caribbean governments (who would receive investment and development)
- Chinese manufacturers (who would lose business)

## Key Provisions

- **Financial Support**: The U.S. International Development Finance Corporation (DFC) must dedicate at least 10% of its annual funds to help companies pay for relocation costs and worker training when moving from China to the Western Hemisphere
- **Reduced Interest Rates**: Companies relocating would receive loans at lower interest rates (either the federal funds rate or 0.5-1% below market rate)
- **Duty-Free Treatment**: The President can grant tariff-free treatment for goods and services from companies making this move
- **Employment Safeguard**: The Commerce Secretary must confirm that assistance won't harm U.S. jobs before approving any financing

Western Hemisphere Nearshoring Act

Rep. Green, Mark E. [R-TN-7]

Western Hemisphere Nearshoring ActThis 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.&nbsp;Specifically, the U.S. International Development Finance Corporation must use at least 10% of its funding to finance moving, workforce development, and facility&nbsp;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&nbsp;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&nbsp;LAC country and guaranteeing that the corporation&nbsp;will not be controlled by China, Russia, or other foreign adversary government. State-owned enterprises are not eligible.&nbsp;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&nbsp;LAC country for the sale of nuclear reactors if these same conditions are met and the sale does not threaten U.S. national security.&nbsp;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.