Support for participation of low-income and lower-middle-income countries in international partnership agreements

(a) In general The United States Trade Representative, at the direction of the President and in consultation with the heads of the relevant Federal agencies, may include, in an international partnership agreement entered into under this title with a country described in subsection (b), provisions providing for— (1) the provision of treatment described in section 202(c) to that country; (2) the extension of untied or tied aid through a United States export, development, or trade agency to support energy technology deployment and manufacturing and secure supply chain development, including financing and technical assistance provided by the United States Agency for International Development, the Department of State, the Millennium Challenge Corporation, and the United States International Development Finance Corporation; (3) lower initial requirements relating to pollution data monitoring and alternative methods to more accurately project and model pollution under the agreement; (4) support for expansion of monitoring and reporting of pollution using best practices; and (5) technical assistance to ensure full compliance with the terms of the agreement. (b) Countries described A country described in this subsection is— (1) a low-income country or a lower-middle-income country; and (2) a country that the United States Trade Representative determines— (A) meets investment thresholds in environmental infrastructure commensurate with the revenue foregone as a result of not charging the fee under section 4692 of the Internal Revenue Code of 1986, as added by title I, with respect to covered products imported from the country; (B) meets procurement thresholds of covered products and related goods and services produced in the United States and other countries that are parties to international partnership agreements under this title; (C) provides preferential market access for energy and environmental, security, and healthcare goods and services produced in the United States; and (D) adopts certain labor and environmental standards. (c) Benchmarks and requirements (1) In general The United States Trade Representative shall establish benchmarks or requirements to assess the progress of a country described in subsection (b) in fully implementing the terms of an international partnership agreement entered into under this title. (2) Benchmarks The benchmarks and requirements established under paragraph (1) with respect to a country shall include— (A) improving methods of monitoring, reporting, and verifying pollution levels; (B) if, after the entry into force of the international partnership agreement, new manufacturing or production capacity for a covered product is built in the country but that capacity is owned or operated, or the majority of the financing for that capacity is provided, by an entity associated with a country that is not a party to an international partnership agreement, treating the new capacity— (i) at the pollution intensity of the country that is not a party to an international partnership agreement if the pollution intensity for the covered product produced in that country is greater than the pollution intensity of the covered product produced in the country that is a party to the international partnership agreement; (ii) as not eligible for the treatment of a country that is a party to an international partnership agreement described in section 202; and (iii) in accordance to the requirements of section 4695 of the Internal Revenue Code of 1986, as added by title I; and (C) if, after the entry into force of the international partnership agreement, the ownership, a stake of ownership, or operation of manufacturing or production capacity for a covered product that is in operation on the date of entry into force is transferred to an entity in a country that is not a party to an international partnership agreement, treating such capacity— (i) at the pollution intensity of the country that is not a party to an international partnership agreement if the pollution intensity for the covered product produced in that country is greater than the pollution intensity of the covered product produced in the country that is a party to the international partnership agreement; (ii) as not eligible for the treatment of a country that is a party to an international partnership agreement described in section 202; and (iii) in accordance to the requirements of section 4695 of the Internal Revenue Code of 1986, as added by title I. (d) Termination The United States shall maintain the authority to terminate the application to a country with which the United States enters into an international partnership agreement under this title of the provisions described in subsection (a)— (1) if the country does not meet the benchmarks and requirements under subsection (c); and (2) pursuant to the terms of the international partnership agreement. (e) Inclusion of other international partners To the maximum extent practicable, the United States shall seek to include additional high-income countries and upper-middle-income countries in international partnership agreements entered into under this title with low-income countries or lower-middle-income countries.