Reps. Espaillat and Salazar Introduce Landmark, Bipartisan Legislation to Expand Trade and Manufacturing in Western Hemisphere

WASHINGTON, D.C —Representatives Adriano Espaillat (D-NY-13) and Maria Salazar (R-FL-27) have introduced the Americas Trade and Investment Act (the “Americas Act”) in the U.S. House of Representatives, a landmark, bipartisan bill that would create a transformational investment, trade, supply chain, and job creation alliance between the U.S. and its democratic partners in the Western Hemisphere. If enacted, the Americas Act would help the U.S. counter China’s influence and bring jobs and investment back to the Western Hemisphere.

Amongst other provisions, the comprehensive bill would create a $60 billion “nearshoring and reshoring” U.S. loan program—in addition to a $10 billion nearshoring and reshoring tax incentive program—to relocate jobs from China back to the U.S., the Caribbean, Central America, and South America. The Americas Act would also be self-funding, by closing the controversial U.S. “de minimis” trade loophole with China, which has caused significant job losses in recent years throughout the Western Hemisphere. The bill’s other tariff provisions would also have the effect of “supercharging” demand for products from countries that are parties to an existing free trade agreement with the U.S., such as the Dominican Republic-Central America Free Trade Agreement (CAFTA-DR) and the U.S.-Mexico-Canada Trade Agreement (USMCA). The bill would also create a pathway for Costa Rica and Uruguay to join the USMCA, while ensuring that CAFTA-DR and the U.S.’s other existing free trade agreements are kept fully intact. Importantly, the bill also does not require any Americas Act partner nation to join the USMCA in order to receive the bill’s numerous loan, grant, and tax benefits. 

Additionally, the House bill would create a five-year, $110 million annual grant program for textile workers and companies operating in the U.S., and in U.S. allies in the Caribbean, Central America, and South America. The House bill would also create a separate, five-year, $110 million annual grant program to support the manufacturing of medical devices, medical supplies, and medical equipment in the Western Hemisphere.

“At its core, the Americas Act is a multi-billion-dollar job creation tool for the U.S. and its allies in Latin America and the Caribbean,” said Rep. Espaillat. “With its reshoring and nearshoring loans, tax benefits, and other targeted grant assistance for workers at home and in our Western Hemisphere partner countries, the Americas Act will bring jobs and investment back to our Hemisphere and stem the root causes of migration by putting more money into the pockets of working families. Importantly, by creating grant programs for both textiles and medical devices and equipment, this bill directly bolsters the two of the largest and most important export industries for the U.S.’s current Western Hemisphere trade partners, including the Dominican Republic. All in all, the Americas Act represents the most transformative piece of legislation to benefit the Western Hemisphere in two decades.”

“It’s past time we unleash the full economic potential of the United States and Latin America,” said Representative Salazar. “The Americas Act is THE solution to grow our economy and bring stability to the hemisphere. This bill will create world-class business opportunities and jobs in Miami, help our allies in Latin America, build resiliency for American supply chains, and combat China’s influence.”

The Senate version of the Americas Act was also introduced simultaneously by U.S. Senators Bill Cassidy, M.D. (R-LA) and Michael Bennet (D-CO). While the Senate version of the bill contains several substantive differences from the House version, the two bills share the same overarching goals.

“We need to relevel the playing field between freedom-loving democracies and those who exploit the rules like China. We do that by refocusing on the Western Hemisphere to improve trade, bring manufacturing back to our shores, and end China’s growing influence,” said Dr. Cassidy. “Our Americas Act will make economies across the hemisphere more resilient, governments more stable, and our hemisphere more prosperous.”

“No region has greater ties to the United States than the Western Hemisphere,” said Senator Bennet. “Yet in recent years we have failed to offer the region a compelling economic alternative to China’s growing influence. This bill changes that. It creates an opportunity for the United States to renew our partnerships across Latin America and the Caribbean, strengthen the rule of law, deepen economic prosperity, and embrace our values in a shared struggle for democracy.”

In addition to lifting up economies throughout the Hemisphere, the Americas Act’s comprehensive series of programs also provides funding to improve education in the Hemisphere and creates a “transformational energy development” loan program dedicated to providing cheaper and greener energy for the U.S.’s Western Hemisphere allies. The bill would also train government officials in consenting Americas partner nations to better catch and track customs violations, harming profits for drug cartels and bad actor Chinese companies.

Read the bill’s text here, the one-page summary here and the section-by-section analysis here.