HR7084-119

What This Bill Does

The Defending American Property Abroad Act amends the port-entry condition in title 46. It lets the President designate a port, harbor, or marine terminal in a Western Hemisphere country that has a free trade agreement with the United States when a foreign government agency or official nationalizes, expropriates, or takes an equivalent action against a U.S. person's port property or land access to that facility. Once designated, vessels that have transited the facility can be denied entry to U.S. ports under the existing vessel-entry condition. The designation does not apply while a free-trade-agreement arbitration is pending.

The bill also creates off-ramps. The President must remove a designation when the conditions no longer exist, the property is restored, the U.S. person receives adequate and effective compensation in convertible foreign exchange or mutually acceptable full-value compensation, or the dispute is otherwise resolved to the President's satisfaction. Emergency vessels and vessels authorized by the affected U.S. owner to transit the facility are excepted.

Who Benefits and How

U.S. port owners abroad, U.S. landowners controlling access to foreign terminals, maritime investors, and companies holding port concessions in Western Hemisphere free-trade-agreement countries benefit because foreign governments face a U.S. port-entry consequence if they expropriate covered property without resolving compensation. The President, Coast Guard, CBP port-entry officials, and U.S. trade negotiators gain a leverage tool tied to property restoration, compensation, arbitration, or settlement.

Who Bears the Burden and How

Foreign governments that expropriate U.S.-owned port property or access land bear diplomatic and commercial pressure. Marine terminal operators using designated facilities, vessel operators that transit those facilities without owner authorization, and cargo customers relying on those routes face the risk that vessels may be denied entry to U.S. ports. Coast Guard and CBP officials must administer exceptions for emergencies and owner-authorized transits.

Key Provisions

• Authorizes Presidential designation of covered foreign port facilities after expropriation of U.S.-owned port property or land access.
• Applies the U.S. port-entry condition to vessels that transit designated facilities in Western Hemisphere free-trade-agreement countries.
• Bars designation while a free-trade-agreement arbitration involving the dispute is pending.
• Requires removal of a designation after property restoration, adequate compensation, or another satisfactory resolution.
• Exempts vessels experiencing emergencies and vessels authorized by the affected U.S. owner.