This bill, titled the "Protecting American Competition Act of 2026," amends the Export Control Reform Act of 2018 to introduce a competitive market review process for certain export licenses. It directs the Under Secretary for Industry and Security to determine if an application for a license to export, reexport, or transfer in-country an item is the initial license for that specific item to a particular ultimate consignee or end user. This provision aims to ensure that the initial granting of a license is considered within a broader market context. Following the issuance of an initial license, the Under Secretary is encouraged to process subsequent applications from other applicants for the same or similar items to the same consignee or end-user in a timely manner . The bill also mandates annual reports to Congress detailing the number of initial licenses granted, the outcomes of other submitted applications for similar items, and the reasons for granting initial licenses when other applications were pending. A rule of construction clarifies that these requirements do not compel delays or actions contrary to U.S. national security or foreign policy interests.