Miller Introduces U.S. - Republic of Korea Digital Trade Enforcement Act
Washington D.C. - Today, Congresswoman Carol Miller (R-WV) introduced the U.S. - Republic of Korea Digital Trade Enforcement Act. This bill was introduced to protect American digital companies if the Republic of Korea passes the Platform Competition Promotion Act (PCPA) or any other law that would harm American digital businesses abroad.
“The Republic of Korea is an important economic and security partner of ours, but we cannot stand by and let U.S. digital companies be targeted by their laws. The PCPA would benefit Chinese companies, put our national security at risk, and negatively impact our economy. I introduced the U.S.-Republic of Korea Digital Trade Enforcement Act to protect American digital trade overseas and ensure that the Korean government does not overstep the bounds of our U.S.-Korea Free Trade Agreement,” said Congresswoman Miller.
Click here for bill text.
Background:
- Last week, Congresswoman Miller participated in a Ways and Means hearing on protecting American innovation through establishing strong digital trade rules. She highlighted the impact that Korea’s digital policies, if passed, would have on U.S. businesses, and how China’s ties to Korea would affect the U.S.
- In June, Congresswoman Miller led a letter to the Korean Ambassador about the Republic of Korea’s (ROK) proposed Platform Competition Promotion Act (PCPA).
- The PCPA is framed as an anti-monopoly bill but would end up targeting U.S. firms Several issues would arise from Korea’s bill including requiring the public disclosure of proprietary algorithms, restricting the offering of multiple products in a digital ecosystem, and subjecting designated companies to a “cease and desist” power that would allow the Korean government to halt operations at the outset of an unfair trade practice investigation even before wrongdoing is found.
- This bill states that if the ROK passes the PCPA or any other legislation that attacks a U.S. digital company, the United States Trade Representative (USTR) will report to Congress on the impacts to the platform, whether the action is in violation of a trade agreement, and impacts to U.S. commerce as a whole.
- Following the report, the United States Trade Representative is instructed to take action to protect U.S. trade which may include a case within the World Trade Organization (WTO) dispute settlement body, a 301 investigation, a dispute under the US-Korea Free Trade Agreement (FTA), or entering into an agreement with Korea to mitigate all impacts.
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