To authorize the President to negotiate the creation of a North American Investment Fund to promote economic and infrastructure integration among Canada, Mexico, and the United States, and for other purposes.

October 7, 2004

Mr. CORNYN introduced the following bill; which was read twice and referred to the Committee on Foreign Relations

To authorize the President to negotiate the creation of a North American Investment Fund to promote economic and infrastructure integration among Canada, Mexico, and the United States, 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 `North American Investment Fund Act'.

SEC. 2. AUTHORITY FOR A NORTH AMERICAN INVESTMENT FUND.

The President is authorized to negotiate with the Governments of Canada and Mexico to create a North American Investment Fund, as described in this Act (hereinafter referred to as the `Fund'), by--

(1) agreeing to certain amendments to the November 1993 Agreement Between the Government of the United States of America and the Government of the United Mexican States Concerning the Establishment of a Border Environment Cooperation Commission and a North American Development Bank; or

(2) negotiating an agreement with the Governments of Canada and Mexico to establish and administer the Fund.

SEC. 3. PURPOSES.

The purposes of the Fund shall be--

(1) to promote economic and infrastructure integration among Canada, Mexico, and the United States;

(2) to promote education and economic development in Mexico; and

(3) to reduce the wealth gap between Mexico and Canada, and between Mexico and the United States.

SEC. 4. PROJECTS FUNDED.

(a) IN GENERAL- The Fund shall make grants for projects to carry out the purposes described in section 3, including projects--

(1) to construct roads in Mexico to facilitate trade between Mexico and Canada, and Mexico and the United States;

(2) to develop and implement post-secondary education programs in Mexico;

(3) to install telecommunications technologies throughout Mexico; and

(4) to construct other infrastructure that will carry out such purposes.

(b) PROJECT SELECTION- The terms of the agreement establishing the Fund shall include guidelines for the selection of projects to receive grants from the Fund.

SEC. 5. CONTRIBUTIONS TO THE FUND.

(a) IN GENERAL- The terms of the agreement establishing the Fund shall, subject to the limitation in subsection (b), require the Governments of Canada, Mexico, and the United States to contribute to the Fund.

(b) LIMITATIONS ON CONTRIBUTIONS BY THE U.S. AND CANADA- The terms of the agreement establishing the Fund shall include provisions that permit Canada and the United States to contribute to the Fund only if, during the initial term of operation of the Fund, the Government of Mexico--

(1) increases the tax revenue collected by such Government, with the goal of collecting an amount of such revenue that is equal to 16 percent of the gross domestic product of Mexico; and

(2) carries out a program of economic reforms to increase economic stability in Mexico.

SEC. 6. TERM OF THE FUND.

The terms of the agreement establishing the Fund shall require that the Fund operate for an initial period of 10 years and cease operations at the end of such period, unless Canada, Mexico, and the United States agree to extend the period of operation.

SEC. 7. REPORT.

Not later than 180 days after the date of the enactment of this Act, the President shall submit to Congress a report on the progress made by the Government of the United States to establish the Fund as described in this Act.

END