H.R. 3193 — United States-Republic of Korea Digital Trade Enforcement Act

This section states the sense of Congress regarding the U.S.-South Korea alliance, affirming the countries' economic and security partnership—including nearly 30,000 U.S. troops stationed in South Korea and the U.S.-Korea Free Trade Agreement—while expressing concern over the U.S. trade deficit with South Korea of $51.1 billion in 2023 (up 16% from 2022), barriers to U.S. investment in South Korea, potential discriminatory digital regulations favoring Chinese technology companies, and targeted enforcement measures that risk alliance friction. (Thus, the United States must ensure a fair, nondiscriminatory regulatory environment and enforce obligations against discriminatory digital trade policies worldwide.)

This section establishes the policy of the United States that (1) fair trade and economic policies in the Indo-Pacific are vitally important to U.S. leadership as the Chinese Communist Party seeks to extend its economic and military influence in the region; (2) the U.S. government fully enforce the United States-Korea Free Trade Agreement; (3) the U.S. government use section 301 authorities of the Trade Act of 1974 (i.e., U.S. Trade Representative actions against unfair foreign trade practices) where necessary to ensure foreign countries do not impose discriminatory digital policies disfavoring U.S. companies; and (4) the U.S. government use such authorities where necessary to ensure foreign countries do not use targeted enforcement measures, including office raids and threats of prosecution, that discriminate against or disadvantage U.S. firms.

This section directs the United States Trade Representative (USTR) to submit a report to Congress not later than 30 days after the enactment of any law or promulgation of any regulation by a government entity of the Republic of Korea that predesignates or post-estimates a United States online or digital platform operator and imposes discriminatory business restrictions. The report must include (1) a determination of whether a United States private entity was negatively impacted by such a Korean government action; (2) a determination of whether the Korean law or regulation violates obligations or denies rights under U.S. bilateral or multilateral trade agreements; and (3) a determination of whether the law or regulation is an unjustifiable action under Section 301(a) of the Trade Act of 1974 (19 U.S.C. 2411(a)) or an unreasonable or discriminatory action under Section 301(b) (19 U.S.C. 2411(b)). (As background, Section 301 authorizes USTR to investigate foreign practices that deny U.S. trade agreement rights or unjustifiably burden U.S. commerce and, if warranted, to impose trade measures.)

This section directs the United States Trade Representative (USTR), upon submission to Congress of a report under section 4 containing an affirmative determination under paragraphs (1) through (3) of that section, to undertake measures to protect United States commerce abroad. Such measures may include (1) initiating a dispute under the World Trade Organization’s Dispute Settlement Understanding, (2) conducting an investigation under Section 301 of the Trade Act of 1974 (19 U.S.C. 2411)—which authorizes USTR to respond to foreign acts, policies, or practices that deny U.S. rights under trade agreements or burden U.S. commerce—(3) initiating a dispute under the United States-Korea Free Trade Agreement, or (4) entering into an agreement with South Korea to mitigate all impacts of the relevant law or regulation on United States private entities.