International partnership agreements

(a) In general The United States Trade Representative, at the direction of the President, may— (1) engage in negotiations with countries to encourage the establishment and expansion of international partnership agreements, as provided in this title; (2) establish agreements with foreign countries with respect to proposals to enter into international partnership agreements; (3) implement such an agreement; and (4) perform the oversight and enforcement role necessary to uphold any such agreement. (b) Requirements for international partnership agreements (1) Products An international partnership agreement may be entered into under this title on the basis of one or more covered products. (2) Parties (A) In general Subject to the requirements under subparagraph (B) and paragraph (3), the United States may enter into an international partnership agreement under this title with— (i) one country; or (ii) multiple countries. (B) Exclusion of nonmarket economy countries The United States may not enter into an international partnership agreement under this title with a nonmarket economy country. (3) Requirements An international partnership agreement entered into under this title is required to provide for— (A) creation of interoperable methods to promote pollution reduction through trade mechanisms by assessing pollution intensity differences between countries; (B) maintenance of the ability of a country that is a party to the agreement to determine methods of pollution reduction within that country; (C) reduction of any fee or charge between countries that are parties to the agreement in a manner compatible with the process described in section 202; (D) compatible pollution monitoring, reporting, and verification methods that— (i) allow for interoperable methods to be used to calculate the pollution intensity of covered products and countries that are parties to the agreement, on the basis of the available information within each such country; (ii) allow for similar methods to be used to calculate the pollution intensity of covered products imported from countries that are not parties to the agreement; and (iii) allow for each country that is a party to the agreement to consistently validate the monitoring and reporting information of the other countries that are parties to the agreement with respect to products covered by the agreement; and (E) collaboration between the parties to the agreement on developing and implementing policies— (i) to address market distortions, including excess capacity, caused by the policies or practices of nonmarket economy countries; and (ii) to determine whether covered products are produced in facilities owned or controlled by a foreign entity of concern. (c) Timeline (1) In general The requirements described in subsection (b) with respect to an international partnership agreement are required to be achieved— (A) for high-income countries and upper-middle income countries, not later than 3 years after entering into the agreement; and (B) for low-income countries and lower-middle-income countries, not later than 5 years after entering into the agreement. (2) Applicability of benefits (A) In general Except as provided by subsection (f), countries described in paragraph (1)(A) shall not receive the treatment described in section 4695 of the Internal Revenue Code of 1986, as added by title I, until the requirements under subsection (b) are met. (B) Termination The United States shall maintain the right to terminate an international partnership agreement at any time pursuant to the terms of the agreement. (d) Publication; congressional review An international partnership agreement entered into under this section shall be— (1) published in the Federal Register; and (2) treated as a final rule prepared by an agency, including with respect to review by Congress under chapter 8 of title 5, United States Code (commonly referred to as the Congressional Review Act). (e) Restrictions on negotiations relating to domestic policy The authority provided by this section does not include the authority to negotiate or enter into an agreement that would establish carbon taxes, fees, pricing, or other mechanisms that impose additional costs on products produced by a United States entity. (f) Delay in application of foreign pollution fee To negotiate with free trade agreement countries In the case of a country with which the United States has a free trade agreement in effect that is negotiating for a partnership agreement under this title, the application of the fee under section 4696 of the Internal Revenue Code of 1986, as added by title I, may be delayed for not more than 12 months to provide time to complete the negotiations.