US Code

Public Law 119-73 (01/23/2026)

19 U.S.C. § 4421

Enhancement of engagement on currency exchange rate and economic policies with certain major trading partners of the United States

(a)

Major trading partner report

(1)

In general

Not later than 180 days after , and not less frequently than once every 180 days thereafter, the Secretary shall submit to the appropriate committees of Congress a report on the macroeconomic and currency exchange rate policies of each country that is a major trading partner of the United States.

(2)

Elements

(A)

In general

Each report submitted under paragraph (1) shall contain—
(i)
for each country that is a major trading partner of the United States—
(I)
that country’s bilateral trade balance with the United States;
(II)
that country’s current account balance as a percentage of its gross domestic product;
(III)
the change in that country’s current account balance as a percentage of its gross domestic product during the 3-year period preceding the submission of the report;
(IV)
that country’s foreign exchange reserves as a percentage of its short-term debt; and
(V)
that country’s foreign exchange reserves as a percentage of its gross domestic product; and
(ii)
an enhanced analysis of macroeconomic and exchange rate policies for each country that is a major trading partner of the United States that has—
(I)
a significant bilateral trade surplus with the United States;
(II)
a material current account surplus; and
(III)
engaged in persistent one-sided intervention in the foreign exchange market.
(B)

Enhanced analysis

Each enhanced analysis under subparagraph (A)(ii) shall include, for each country with respect to which an analysis is made under that subparagraph—
(i)
a description of developments in the currency markets of that country, including, to the greatest extent feasible, developments with respect to currency interventions;
(ii)
a description of trends in the real effective exchange rate of the currency of that country and in the degree of undervaluation of that currency;
(iii)
an analysis of changes in the capital controls and trade restrictions of that country; and
(iv)
patterns in the reserve accumulation of that country.
(3)

Assessment factors

Not later than 90 days after , the Secretary shall publicly describe the factors used to assess under paragraph (2)(A)(ii) whether a country has a significant bilateral trade surplus with the United States, has a material current account surplus, and has engaged in persistent one-sided intervention in the foreign exchange market.

(b)

Engagement on exchange rate and economic policies

(1)

In general

The President, through the Secretary, shall commence enhanced bilateral engagement with each country for which an enhanced analysis of macroeconomic and currency exchange rate policies is included in the report submitted under subsection (a), in order to, as appropriate—
(A)
urge implementation of policies to address the causes of the undervaluation of its currency, its significant bilateral trade surplus with the United States, and its material current account surplus, including undervaluation and surpluses relating to exchange rate management;
(B)
express the concern of the United States with respect to the adverse trade and economic effects of that undervaluation and those surpluses;
(C)
advise that country of the ability of the President to take action under subsection (c); and/or
(D)
develop a plan with specific actions to address that undervaluation and those surpluses.
(2)

Waiver

(A)

In general

The Secretary may waive the requirement under paragraph (1) to commence enhanced bilateral engagement with a country if the Secretary determines that commencing enhanced bilateral engagement with the country—
(i)
would have an adverse impact on the United States economy greater than the benefits of such action; or
(ii)
would cause serious harm to the national security of the United States.
(B)

Certification and report

The Secretary shall promptly certify to Congress a determination under subparagraph (A) and promptly submit to Congress a report that describes in detail the reasons for the Secretary’s determination under subparagraph (A).

(c)

Remedial action

(1)

In general

If, on or after the date that is one year after the commencement of enhanced bilateral engagement by the President, through the Secretary, with respect to a country under subsection (b)(1), the Secretary determines that the country has failed to adopt appropriate policies to correct the undervaluation and surpluses described in subsection (b)(1)(A) with respect to that country, the President shall take one or more of the following actions:
(A)
Prohibit the United States International Development Finance Corporation from approving any new financing (including any insurance, reinsurance, or guarantee) with respect to a project located in that country on and after such date.
(B)
Except as provided in paragraph (3), and pursuant to paragraph (4), prohibit the Federal Government from procuring, or entering into any contract for the procurement of, goods or services from that country on and after such date.
(C)
Instruct the United States Executive Director of the International Monetary Fund to call for additional rigorous surveillance of the macroeconomic and exchange rate policies of that country and, as appropriate, formal consultations on findings of currency manipulation.
(D)
Instruct the United States Trade Representative to take into account, in consultation with the Secretary, in assessing whether to enter into a bilateral or regional trade agreement with that country or to initiate or participate in negotiations with respect to a bilateral or regional trade agreement with that country, the extent to which that country has failed to adopt appropriate policies to correct the undervaluation and surpluses described in subsection (b)(1)(A).
(2)

Waiver

(A)

In general

The President may waive the requirement under paragraph (1) to take remedial action if the President determines that taking remedial action under paragraph (1) would—
(i)
have an adverse impact on the United States economy greater than the benefits of taking remedial action; or
(ii)
would cause serious harm to the national security of the United States.
(B)

Certification and report

The President shall promptly certify to Congress a determination under subparagraph (A) and promptly submit to Congress a report that describes in detail the reasons for the President’s determination under subparagraph (A).

(3)

Exception

The President may not apply a prohibition under paragraph (1)(B) in a manner that is inconsistent with United States obligations under international agreements.

(4)

Consultations

(A)

Office of Management and Budget

Before applying a prohibition under paragraph (1)(B), the President shall consult with the Director of the Office of Management and Budget to determine whether such prohibition would subject the taxpayers of the United States to unreasonable cost.

(B)

Congress

The President shall consult with the appropriate committees of Congress with respect to any action the President takes under paragraph (1)(B), including whether the President has consulted as required under subparagraph (A).

(d)

Definitions

In this section:
(1)

Appropriate committees of Congress

The term “appropriate committees of Congress” means—
(A)
the Committee on Banking, Housing, and Urban Affairs and the Committee on Finance of the Senate; and
(B)
the Committee on Financial Services and the Committee on Ways and Means of the House of Representatives.
(2)

Country

The term “country” means a foreign country, dependent territory, or possession of a foreign country, and may include an association of 2 or more foreign countries, dependent territories, or possessions of countries into a customs union outside the United States.

(3)

Real effective exchange rate

The term “real effective exchange rate” means a weighted average of bilateral exchange rates, expressed in price-adjusted terms.

(4)

Secretary

The term “Secretary” means the Secretary of the Treasury.

Pub. L. 114–125, title VII, § 701130 Stat. 195Pub. L. 115–254, div. F, title VI, § 1470(h)132 Stat. 3516(, , ; , , .)

Editorial Notes

Amendments

Pub. L. 115–2542018—Subsec. (c)(1)(A). substituted “United States International Development Finance Corporation” for “Overseas Private Investment Corporation”.

Statutory Notes and Related Subsidiaries

Effective Date of 2018 Amendment

Pub. L. 115–254section 9681 of Title 22section 1470(w) of Pub. L. 115–254section 905 of Title 2Amendment by effective at the end of the transition period, as defined in , Foreign Relations and Intercourse, see , set out as a note under , The Congress.

Executive Documents

Ex. Ord. No. 13733. Delegation of Certain Authorities and Assignment of Certain Functions Under the Trade Facilitation and Trade Enforcement Act of 2015

Ex. Ord. No. 13733, , 81 F.R. 49515, provided:

Public Law 114–125section 301 of title 3By the authority vested in me as President by the Constitution and the laws of the United States of America, including the Trade Facilitation and Trade Enforcement Act of 2015 (the “Act”) () and , United States Code, I hereby order as follows:

SectionAuthorities and Functions under the Act 1. . (a) The functions of the President under section 2313A(b) of the Export Enhancement Act of 1988, as added by section 504 of the Act, are assigned to the Secretary of Commerce. In carrying out its functions, the State and Federal Export Promotion Coordination Working Group established by the Secretary of Commerce under this section shall also coordinate with local and municipal governments representing regionally diverse areas.

(b) The functions of the President under section 909(d) of the Act are assigned to the Secretary of State, in consultation with other relevant Federal agencies.

(c) The functions of the President under section 915(d) of the Act are assigned to the Administrator of the United States Agency for International Development, in consultation with the Secretary of State and the United States Trade Representative (U.S. Trade Representative).

(d) The functions of the President under section 915(e) of the Act are assigned to the U.S. Trade Representative, in consultation with the Secretary of State.

SecEngagement on Currency Exchange Rate and Economic Policies. 2. . (a) Prior to undertaking an enhanced analysis of a country pursuant to section 701(a)(2)(A)(ii) of the Act, the Secretary of the Treasury shall seek the views of the U.S. Trade Representative on changes in trade restrictions in that country.

(b) In exercising the functions under section 701(b)(2)(A) of the Act, the Secretary of the Treasury shall consult with the Secretary of State in making any determination that commencing enhanced bilateral engagement with a country would cause serious harm to the national security of the United States.

(c) If the Secretary of the Treasury determines, pursuant to section 701(c)(1) of the Act, that a country has failed to adopt appropriate policies to correct the undervaluation and surpluses described in section 701(b)(1)(A) of the Act with respect to that country, the Assistant to the President for Economic Policy, in consultation with the Secretary of the Treasury, the U.S. Trade Representative, the Secretary of State, and the Secretary of Commerce, shall make a recommendation to the President regarding which of the actions set forth in sections 701(c)(1)(A) through (D) of the Act the President should take, or whether the President should waive, pursuant to section 701(c)(2) of the Act, the requirement to take remedial action.

SecGeneral Provisions. 3. . (a) In exercising authority delegated by or performing functions assigned in this order, the Secretaries of State, the Treasury, and Commerce and the U.S. Trade Representative and their delegees:

(i) shall ensure that all actions taken by them are consistent with the President’s constitutional authority to (A) conduct the foreign affairs of the United States, including the commencement, conduct, and termination of negotiations with foreign countries and international organizations; (B) withhold information the disclosure of which could impair the foreign relations, the national security, the deliberative processes of the Executive, or the performance of the Executive’s constitutional duties; (C) recommend for congressional consideration such measures as the President may judge necessary or expedient; and (D) supervise the executive branch; and

section 301 of title 3(ii) may redelegate authority delegated by this order and may further assign functions assigned by this order to officers of any other department or agency within the executive branch to the extent permitted by law, including , United States Code, and such redelegation or further assignment shall be published in the Federal Register.

(b) This order shall be implemented consistent with applicable law and subject to the availability of appropriations.

(c) This order is not intended to, and does not, create any right or benefit, substantive or procedural, enforceable at law or in equity by any party against the United States, its departments, agencies, or entities, its officers, employees, or agents, or any other person.

Barack Obama.