The Medical Supply Chain Resiliency Act authorizes the President to negotiate and enter into trade agreements with specific countries, termed "trusted trade partners." The primary goal of these agreements is the reciprocal elimination of duties or other import restrictions on medical goods, thereby contributing to the national security and public health of the United States. This initiative seeks to improve overall medical supply chain resilience by establishing a framework to enhance these chains with reliable international partners.

The bill's findings highlight vulnerabilities exposed by the COVID-19 pandemic, including significant demand pressures, supply shortages, and reliance on a limited number of import partners for critical medical goods. Congress emphasizes the importance of diversifying trade relationships and prioritizing partners with reliable supply chain policies to prevent future disruptions. The act aims to address these issues by fostering international collaboration, expanding manufacturing capacities, and promoting regulatory harmonization.

Key purposes of the act include improving overall medical supply chain resilience, enhancing supply chain security related to technology transfer and intellectual property, and diversifying supplier networks to ensure a reliable supply of medical goods, particularly during emergencies. It also seeks to eliminate unnecessary trade barriers, expedite cross-border movement of critical medical goods, and foster international cooperation in research, development, and manufacturing.

When considering a country for a trusted trade partner agreement, the President must evaluate several factors. These include the country's commitment to global health security, its adherence to existing free trade agreements, efforts to reduce trade barriers, maintenance of the rule of law, and effective protection of intellectual property rights. Agreements may provide for the reduction of trade barriers, diversification of supplier networks, harmonization of regulatory procedures, increased access to government procurement markets, and regulatory cooperation on manufacturing standards.

The bill establishes significant congressional oversight, requiring the President to provide notice before negotiations, consult with appropriate committees, and submit reports on proposed agreements. Congress retains the right to review and potentially disapprove agreements. Furthermore, the Trade Representative is mandated to monitor compliance by trusted trade partners, and the President can take action, such as suspending agreements or seeking compensatory benefits, if a partner fails to uphold its commitments.