Definitions

(a) In general In this title: (1) Free trade agreement The term free trade agreement means an agreement with 1 or more countries that— (A) reduces or eliminates tariffs and non-tariff barriers between the countries that are parties to the agreement; and (B) is approved by Congress. (2) Nonmarket economy country The term nonmarket economy country means any foreign country that the Secretary of Commerce determines, pursuant to section 771(18) of the Tariff Act of 1930 (19 U.S.C. 1677(18)), does not operate on market principles of cost or pricing structures, so that sales of merchandise in that country do not reflect the fair value of merchandise. (3) United States entity The term United States entity means an entity organized under the laws of the United States or any jurisdiction within the United States. (b) Other terms In this title, the definitions set forth in section 4691 of the Internal Revenue Code of 1986, as added by title I, apply. (c) World bank classifications In this title: (1) In general Subject to paragraph (2), the terms high-income country, upper-middle-income country, lower-middle-income country, and low-income country shall be defined based on the classification of the economy of a country by the World Bank. (2) High-income and upper-middle-income countries In the case of any country which, as of January 1, 2025, is classified by the World Bank as a high-income country or an upper-middle-income country, such country shall not be eligible to be reclassified as a lower-middle-income country or a low-income country.