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[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 3399 Introduced in Senate (IS)]
<DOC>
119th CONGRESS
1st Session
S. 3399
To authorize the President to enter into digital trade agreements, and
for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
December 9, 2025
Mr. Young (for himself, Mr. Coons, Mr. Moran, and Mr. Bennet)
introduced the following bill; which was read twice and referred to the
Committee on Finance
_______________________________________________________________________
A BILL
To authorize the President to enter into digital trade agreements, and
for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Digital Trade Promotion Act of
2025''.
SEC. 2. FINDINGS; SENSE OF CONGRESS.
(a) Findings.--Congress makes the following findings:
(1) The Bureau of Economic Analysis found that the digital
economy contributed roughly 10 percent of United States gross
domestic product and supported approximately 8,900,000 United
States jobs in 2022.
(2) In 2023, United States exports of digital services
surpassed $655,000,000,000, accounting for more than half of
all United States services exports and generating a digital
services trade surplus for the United States of roughly
$266,800,000,000.
(3) Digital trade bolsters the economy by enabling the sale
of goods and the supply of services across borders.
(4) Digital trade has become increasingly vital to United
States workers and businesses of all sizes, including
manufacturers, farmers, industrial facilities, service
suppliers, and countless small and medium-sized enterprises
that use digital technology to produce and export goods and
services across the world.
(5) Digital trade is crucial for the global competitiveness
of the United States, as United States industry relies on free
and secure cross-border data flows to deploy cutting-edge
technology essential to innovation and productivity.
(6) Digital innovation has provided new opportunities for
economic development, entrepreneurship, and growth in
developing countries around the world.
(7) Countries have negotiated international rules governing
digital trade in various bilateral and plurilateral agreements,
but those rules remain fragmented.
(8) The United States, through free trade agreements and
trade negotiations, has been a leader in developing rules and
standards governing digital trade and electronic commerce that
have helped the United States and partners of the United States
unlock the economic potential of digital innovation.
(9) Certain countries, including the People's Republic of
China, are advancing discriminatory digital policies that
undermine United States companies and workers by enabling
censorship, surveillance, forced technology transfers, and data
flow restrictions at the expense of human rights, the rule of
law, privacy, and an open internet.
(b) Sense of Congress.--It is the sense of Congress that--
(1) there is a need for agreements on digital trade, as
Congress recognized by its support for a robust digital trade
chapter in the United States-Mexico-Canada Agreement, which has
been of critical importance to all sectors of the economy;
(2) negotiating strong digital trade principles and
commitments with countries across the globe enables the United
States to unite like-minded countries around common standards
and ensure that principles of democracy, rule of law, freedom
of speech, human and worker rights, privacy, and a free and
open internet are at the very core of digital governance; and
(3) even as domestic statutes and regulations governing the
digital economy continue to develop and evolve, the United
States should cooperate with its allies and trading partners to
advance global digital trade rules that reflect United States
interests and values.
SEC. 3. DEFINITIONS.
In this Act:
(1) Appropriate committees of congress.--The term
``appropriate committees of Congress'' means--
(A) the Committee on Finance of the Senate; and
(B) the Committee on Ways and Means of the House of
Representatives.
(2) Country.--The term ``country'' means any foreign
country or territory, including any overseas dependent
territory or possession of a foreign country.
(3) Trade representative.--The term ``Trade
Representative'' means the United States Trade Representative.
(4) Digital trade agreement.--The term ``digital trade
agreement'' means an agreement with one or more trusted trade
partners entered into under section 4.
SEC. 4. AUTHORITY TO ENTER INTO DIGITAL TRADE AGREEMENTS.
(a) In General.--The President may, subject to the requirements
under section 5, negotiate, enter into, and enforce a digital trade
agreement with a country or countries.
(b) Considerations.--In determining whether to enter into
negotiations for a digital trade agreement with a country pursuant to
subsection (a), the President shall take into account whether the
government of the country has--
(1) expressed a desire to enter into such an agreement;
(2) adhered to and implemented the commitments and
obligations under any existing free trade agreements to which
that country and the United States are parties;
(3) implemented measures to reduce or eliminate unnecessary
trade barriers and distorting practices affecting electronic
commerce;
(4) maintained the rule of law by enacting and enforcing
laws and regulations in a clear, publicized, transparent, and
nondiscriminatory manner; and
(5) adopted and enforced laws that provide adequate and
effective protection of intellectual property rights reflecting
a standard of protection similar to that found under United
States law.
(c) Content of Digital Trade Agreements.--A digital trade agreement
shall apply to all sectors of the economy and provide for--
(1) nondiscriminatory treatment of digital products and
digital services;
(2) prohibition of discriminatory taxes on digital
services;
(3) the free flow of data across borders and the
prohibition of data localization requirements;
(4) frameworks for the secure transfer and sharing of
industrial data and other sensitive data that bolster data
security, including through the promotion and protection of
end-to-end encryption;
(5) the protection of consumers engaged in electronic
commerce, including the promotion of interoperability
mechanisms, such as the Cross-Border Privacy Rules of the Asia-
Pacific Economic Cooperation, or successor frameworks, to
facilitate international data transfers while ensuring the
protection of the privacy of personal information;
(6) prohibition of forced transfer or disclosure of source
code, algorithms, cryptographic technology, trade secrets, and
other proprietary technology as a condition of market access;
(7) cooperation to advance interoperable, risk-based
frameworks for the development, deployment, and cross-border
trade in emerging digital technologies, including artificial
intelligence and quantum computing;
(8) cooperation in addressing cybersecurity threats and
adherence to risk-based approaches to mitigating cybersecurity
threats, including sharing of information and coordination on
incident response and best practices based on consensus
standards;
(9) prohibition of customs duties on electronic
transmissions, including on content transmitted electronically;
(10) promotion of voluntary, international standards for
digital technologies and services;
(11) promotion of alignment on export controls, sanctions,
and investment review mechanisms that impact digital trade;
(12) greater transparency in domestic regulation of
services;
(13) promotion of risk-based approaches to government
procurement of hardware and software to support secure digital
infrastructure;
(14) other provisions that, in the judgment of the Trade
Representative, would advance the national interests of the
United States with respect to digital trade; and
(15) exceptions to the provisions described in paragraphs
(1) through (14) to allow for the protection of legitimate
public policy objectives and national security.
SEC. 5. CONGRESSIONAL OVERSIGHT, NOTICE, CONSULTATIONS, ACCESS TO
INFORMATION, AND REVIEW.
(a) Notice.--Not later than 60 days before initiating negotiations
with a country under section 4(a) for a digital trade agreement, the
President shall submit to Congress written notice of the intention of
the President to enter into the negotiations, which shall include the
date on which negotiations will begin and the country with which the
President seeks to enter into the agreement.
(b) Consultation With Members of Congress.--
(1) Consultation during negotiations and access to
information.--In the course of negotiations under section 4(a)
for a digital trade agreement, the Trade Representative shall--
(A) meet upon request with the appropriate
committees of Congress regarding negotiating
objectives, the status of negotiations in progress, and
potential effects to the laws of the United States
resulting from the agreement;
(B) upon request by the appropriate committees of
Congress, provide access to pertinent documents
relating to the negotiations; and
(C) consult closely and on a timely basis with, and
keep fully apprised of the negotiations, the
appropriate committees of Congress.
(2) Consultation before entry into agreement.--Before
entering into a digital trade agreement under section 4, the
Trade Representative shall consult with--
(A) the appropriate committees of Congress; and
(B) each other committee of the Senate and the
House of Representatives, and each joint committee of
Congress, that has jurisdiction over legislation
involving a subject matter that would be affected by
the agreement.
(c) Consultation With Federal Agencies.--In the course of
negotiations under section 4(a) for a digital trade agreement, the
Trade Representative shall inform and consult with any Federal agency
having expertise in the matters being negotiated.
(d) Report to Congress.--Not later than 60 days before the date on
which the President enters into a digital trade agreement with a
country under section 4, the President shall submit to Congress a
report describing--
(1) the nature and scope of the agreement;
(2) the proposed duration of the agreement;
(3) how and to what extent the agreement will achieve the
applicable purposes, policies, priorities, and objectives of
this Act;
(4) whether sufficient evidence exists demonstrating that
the country satisfies the conditions under section 4(b); and
(5) the proposed implementation of the agreement, including
the general effect of the agreement on existing laws.
(e) Congressional Right To Review and Disapprove.--
(1) In general.--A digital trade agreement shall not take
effect until--
(A) the proposed agreement and the report required
by subsection (d) with respect to that agreement have
been submitted to Congress; and
(B) the review period required by paragraph (2)
following the date on which the proposed agreement has
been submitted to Congress under subparagraph (A) has
been exhausted, during which period a joint resolution
is not enacted under paragraph (4).
(2) Review.--
(A) Initial review.--Unless extended under
subparagraph (B) or (C), the review period under this
paragraph with respect to a digital trade agreement is
30 days, during which time Congress shall review--
(i) the proposed agreement; and
(ii) whether--
(I) the President failed or refused
to provide notice with respect to the
agreement in accordance with subsection
(a);
(II) the President failed or
refused to consult with respect to the
agreement in accordance with
subsections (b) and (c);
(III) the President failed or
refused to submit to Congress a report
with respect to the agreement in
accordance with subsection (d); or
(IV) the President failed or
refused to demonstrate that the
agreement would achieve the applicable
purposes, policies, priorities, and
objectives of this Act.
(B) Further review.--If, during the 30-day period
under subparagraph (A) with respect to a digital trade
agreement, one House of Congress adopts a resolution
stating that the House of Congress wishes to further
review the proposed agreement, the review period under
this paragraph with respect to the proposed agreement
shall be extended by a period of 60 days, during which
time the appropriate committees of Congress shall
engage the President with respect to the proposed
agreement and the failures or refusals of the President
specified under subparagraph (A).
(C) Additional period.--If, during the 60-day
period under subparagraph (B) with respect to a digital
trade agreement, one House of Congress adopts a
resolution stating that the House of Congress wishes to
further review the proposed agreement, the review
period under this paragraph with respect to the
proposed agreement shall be further extended by a
period of 30 days.
(3) Procedures for considering resolutions.--A resolution
under subparagraph (B) or (C) of paragraph (2)--
(A) in the Senate--
(i) may be introduced by any Member of the
Senate;
(ii) shall be referred to the Committee on
Finance; and
(iii) may not be amended;
(B) in the House of Representatives--
(i) may be introduced by any Member of the
House;
(ii) shall be referred to the Committee on
Ways and Means or the Committee on Rules; and
(iii) may not be amended by either
Committee; and
(C) the vote on passage of the resolution shall
occur immediately following the conclusion of the
debate on the digital trade agreement at issue and a
single quorum call at the conclusion of the debate.
(4) Disapproval.--If, during the review period required
under paragraph (2) with respect to a digital trade agreement,
a joint resolution is enacted stating that Congress does not
favor the agreement, the agreement shall not take effect.
SEC. 6. MONITORING AND ENFORCEMENT OF CONTINUED COMPLIANCE WITH DIGITAL
TRADE AGREEMENTS.
(a) Monitoring.--The Trade Representative shall periodically
monitor compliance by a country with the commitments and obligations of
the country under a digital trade agreement.
(b) Actions in Response to Failure To Comply.--
(1) Determination and report of trade representative.--If
the Trade Representative determines that a country has failed
to satisfactorily implement, maintain, and enforce the
commitments and obligations of the country under a digital
trade agreement, the Trade Representative shall submit to the
President a report setting forth--
(A) the determination and the findings that support
the determination; and
(B) based on such findings, the recommendations of
the Trade Representative for action or inaction under
this subsection.
(2) Determination of president.--Not later than 30 days
after receiving a report under paragraph (1) with respect to a
country, the President shall--
(A) determine whether the President concurs with
the determination of the Trade Representative set forth
in the report; and
(B) if the President concurs, determine whether--
(i) to suspend, withdraw, or prevent the
application of the digital trade agreement with
the country;
(ii) to enter into a binding agreement with
the country that commits the country--
(I) to eliminate any burden or
restriction on the United States
resulting from the failure of the
country to comply with the commitments
and obligations of the country under a
digital trade agreement; and
(II) to provide the United States
with such compensatory trade benefits
as are negotiated between the Trade
Representative and the country; or
(iii) to take such other actions as the
Trade Representative considers necessary to
encourage the country to adhere to the
commitments and obligations of the country
under a digital trade agreement.
(3) Timeline for action.--If the President determines under
paragraph (2)(B) to take action, the President shall implement
that action by not later than the date that is 15 days after
the day on which the President determines to take action under
that paragraph.
<all>
Introduced in Senate
Read twice and referred to the Committee on Finance.
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