Bill Overview
Title: Opportunities in the Americas Act
Description: This bill provides assistance to eligible companies relocating manufacturing from China to a qualifying Latin American or Caribbean country, generally a country in the region that has a free trade agreement with the United States and is not a foreign adversary. For example, the U.S. International Development Finance Corporation must use at least 10 percent of its funding for each fiscal year to provide assistance, such as financing eligible costs for moving and workforce development, to businesses relocating manufacturing from China to a qualifying Latin American or Caribbean country, subject to various conditions and requirements. The bill also provides tax benefits related to certain property acquired and placed in service in connection with such a relocation of manufacturing.
Sponsors: Rep. Espaillat, Adriano [D-NY-13]
Target Audience
Population: Individuals in Latin America and Caribbean employed in manufacturing
Estimated Size: 250000
- The bill focuses on companies relocating from China to Latin American or Caribbean countries with US free trade agreements, affecting economic activities in those regions.
- US-based companies with international operations and their employees within the US will be directly impacted by potential relocations and new business opportunities.
- Employees in Latin American or Caribbean countries will see changes in job opportunities if manufacturing relocates to these regions.
- There is potential impact on global supply chains due to manufacturing relocation, affecting various stakeholders involved in these supply chains.
- Tax benefits might impact US-based companies by encouraging investment in qualifying regions.
- The bill affects US-Latin America and Caribbean economic relations, potentially influencing bilateral trade.
- The bill could impact the strategic positioning of manufacturing sectors from China to the Western Hemisphere.
Reasoning
- The Policy targets companies in the US with supply chains involving manufacturing in China. It focuses on relocating manufacturing to Latin America or the Caribbean, which opens new markets and opportunities.
- The $500 million initial budget limits the extent of immediate large-scale impact but provides significant relief to early adopters.
- The policy impacts US employees who may benefit from new opportunities created by relocated manufacturing operations closer to the US.
- Employees in logistics and supply chain are particularly impacted due to changes in manufacturing and distribution routes.
- Some US-based manufacturing firms choosing to relocate could experience tax incentives, leading to better financial health.
- US residents in areas housing company headquarters or major operations might see economic benefits from increased business activity.
- Not all US citizens will feel immediate impact; those outside affected industries or regions may see no change in their wellbeing scores.
Simulated Interviews
Supply Chain Manager (Austin, Texas)
Age: 45 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 5/20
Statement of Opinion:
- I think this policy could provide a great opportunity for my company to cut costs and improve supply chain efficiency.
- There may be initial disruptions during the transition, but long-term benefits should outweigh them.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 8 | 6 |
| Year 5 | 8 | 6 |
| Year 10 | 9 | 6 |
| Year 20 | 9 | 6 |
Logistics Coordinator (Miami, Florida)
Age: 34 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 3.0 years
Commonness: 10/20
Statement of Opinion:
- The policy will likely boost job security in our department as we expand our operations to new regions.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 7 | 5 |
| Year 10 | 8 | 5 |
| Year 20 | 8 | 5 |
Financial Analyst (Chicago, Illinois)
Age: 28 | Gender: other
Wellbeing Before Policy: 7
Duration of Impact: 4.0 years
Commonness: 4/20
Statement of Opinion:
- There are strategic tax incentives that could lead to long-term savings for our company.
- Personally, the move opens up professional growth opportunities in new regions.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 9 | 7 |
| Year 10 | 9 | 7 |
| Year 20 | 9 | 7 |
HR Specialist (Detroit, Michigan)
Age: 40 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 8/20
Statement of Opinion:
- The policy provides a chance to explore new markets, but there will be challenges in managing employee relocations effectively.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 8 | 6 |
| Year 10 | 8 | 6 |
| Year 20 | 8 | 6 |
Business Owner (San Jose, California)
Age: 55 | Gender: male
Wellbeing Before Policy: 8
Duration of Impact: 1.0 years
Commonness: 7/20
Statement of Opinion:
- I'm skeptical about the practicality of relocating—it sounds costly, even with incentives.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 8 |
| Year 2 | 7 | 8 |
| Year 3 | 7 | 8 |
| Year 5 | 7 | 8 |
| Year 10 | 7 | 8 |
| Year 20 | 7 | 8 |
Tax Consultant (New York City, New York)
Age: 30 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 4.0 years
Commonness: 6/20
Statement of Opinion:
- The tax incentives are a boon for clients looking to optimize expenses—I'm excited for the potential growth in advisory roles.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 8 | 7 |
| Year 10 | 9 | 7 |
| Year 20 | 9 | 7 |
Warehouse Operator (Los Angeles, California)
Age: 29 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 2.0 years
Commonness: 9/20
Statement of Opinion:
- I'm concerned about how this will affect my job security if operations shift locations.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 4 | 5 |
| Year 2 | 4 | 5 |
| Year 3 | 5 | 5 |
| Year 5 | 5 | 5 |
| Year 10 | 5 | 5 |
| Year 20 | 5 | 5 |
Manufacturing Engineer (Dallas, Texas)
Age: 50 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 5/20
Statement of Opinion:
- The policy will certainly increase the workload, but also presents a chance to innovate in new locations.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 8 | 6 |
| Year 10 | 8 | 6 |
| Year 20 | 8 | 6 |
Software Developer (Atlanta, Georgia)
Age: 37 | Gender: male
Wellbeing Before Policy: 8
Duration of Impact: 2.0 years
Commonness: 8/20
Statement of Opinion:
- This policy might lead to a growth in developers working on new market-specific adaptations for software systems.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 8 | 8 |
| Year 3 | 8 | 8 |
| Year 5 | 8 | 8 |
| Year 10 | 8 | 8 |
| Year 20 | 8 | 8 |
Economic Consultant (Houston, Texas)
Age: 42 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 5.0 years
Commonness: 3/20
Statement of Opinion:
- The policy could reshape US-Latin American economic relationships positively, with new business opportunities.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 9 | 7 |
| Year 5 | 9 | 7 |
| Year 10 | 9 | 7 |
| Year 20 | 9 | 7 |
Cost Estimates
Year 1: $500000000 (Low: $450000000, High: $550000000)
Year 2: $500000000 (Low: $450000000, High: $550000000)
Year 3: $500000000 (Low: $450000000, High: $550000000)
Year 5: $500000000 (Low: $450000000, High: $550000000)
Year 10: $500000000 (Low: $450000000, High: $550000000)
Year 100: $500000000 (Low: $450000000, High: $550000000)
Key Considerations
- The capacity of the Latin American and Caribbean countries to absorb new manufacturing sites.
- Changes in trade balances as a consequence of shifting manufacturing bases.
- The potential U.S. political and economic relationships with countries benefiting from new investments.
- Anticipated competition with onshore or other favored trade partners.
- The speed and cost of transition from current supply chains heavily reliant on China.