House Releases New Trade Provisions in the America COMPETES Act

House Releases New Trade Provisions in the America COMPETES Act

February 3, 2022, Covington Alert

On January 25, 2022, the U.S. House of Representatives released the America Creating Opportunities for Manufacturing, Pre-Eminence in Technology, and Economic Strength (“COMPETES”) Act of 2022. This long-awaited bill is the House counterpart to legislation the Senate passed on June 8, 2021, entitled the U.S. Innovation and Competition Act (“USICA”). Both bills are largely designed to respond to China, and they cover a wide range of issues ranging from the production of semiconductors to labor standards. The America COMPETES Act has yet to secure passage in the House, where it is unlikely to draw Republican support. If it passes the House, the legislation will move to a conference committee where the House and Senate must resolve differences between the competing bills. Bipartisan support for the post-conference bill will likely be required given the Senate’s 60-vote threshold.

In this alert, we analyze how significant trade-related provisions in the House and Senate bills would impact U.S. and foreign companies. We also discuss material differences between the competing trade titles, which the two chambers would need to resolve in any conference.