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Updated January 14, 2022

U.S. Trade Policy Functions: Who Does What?

At the nexus of foreign and domestic policy, U.S. trade
policy comprises a distinct set of issues that shape U.S.
participation in the global economy and relations with
trading partners. It also affects the overall U.S. economy
and standard of living of Americans, as well as specific
sectors, firms, and workers.
Controversial at times, U.S. trade policy historically has
focused on supporting economic growth and jobs through
more open and rules-based trade by negotiating and
enforcing reciprocal trade agreements and other measures,
while offering relief to specific segments of the U.S.
economy affected by trade liberalization and unfair
foreign trade practices. U.S. trade policy also has aimed to
promote trade and investment, while regulating these flows
for national security, health, safety, and other reasons.
Additional aims have included to support economic
development in developing countries and expand U.S.
influence abroad. With ongoing congressional and public
debate about the benefits and costs of trade liberalization,
and a rise in trade protectionism globally amid certain
developments, the future direction of U.S. trade policy is an
open question.
The Constitution gives Congress primacy over trade policy,
specifically the power to levy tariffs and regulate foreign
commerce. By contrast, the President lacks specific
authority over trade, but has power over foreign affairs. The
executive branch's role in trade stems from the President's
power to negotiate treaties with other nations, and
legislative grants of authority to adjust tariff rates and
implement trade policy. Congress and the President have
delegated many trade functions to the Office of the U.S.
Trade Representative (USTR) and other executive branch
departments and agencies. USTR-led interagency and
advisory systems support their trade functions.
eyTrade AgenckS
Office of the U.S. Trade Representative (USTR)
USTR, a Cabinet-level official in the Executive Office of the
President, is the President's principal advisor on trade policy,
chief U.S. trade negotiator, and head of the interagency trade
policy coordinating process. USTR administers U.S. law to
combat unfair foreign trade practices (e.g., Section 301).
and trade preference programs for developing countries. In
creating and elevating USTR, Congress aimed to balance
competing interests between U.S. domestic and foreign policy,
among the trade-related agencies, and domestic stakeholders.
Congress also aimed to address concerns that trade interests
were being overlooked under the State Department's
historical lead. Milestones in USTR's evolution include the:
* Trade Expansion Act of 1962. Created an ambassador-level
Special Representative for Trade Negotiations (precursor to
USTR) to lead the new interagency system to coordinate
trade policy, which the act also created.

 Trade Act of 1974. Designated the Special Representative as
the chief U.S. trade negotiator, lead of the trade agreements
program, and head of the new private sector advisory
committee system, which the act also created. Elevated
position to cabinet rank and placed it in the White House.
 Trade Agreements Act of 1979. Required the President to
submit a trade reorganization plan, including to boost the
Special Representative's coordination and functional roles.
 Omnibus Trade and Competitiveness Act of 1988. Elevated
USTR to coordinate trade policy, serve as the President's
principal trade advisor and trade spokesperson, and lead
U.S. international trade negotiations. Required USTR to
report to both the President and Congress.
Department of Commerce
Commerce conducts many non-agricultural trade functions.
 The International Trade Administration (ITA), supported by
U.S. and foreign commercial service officers, provides
market research, business connections, and other services
to promote U.S. exports and attract foreign investment. It
also conducts antidumping and countervailing duty (AD/
CVD) investigations to address potential adverse effects on
U.S. industry of unfair foreign trade practices, and
monitors foreign compliance with U.S. trade agreements.
 The Bureau of Industry and Security (BIS) administers
licensing and civil enforcement functions for dual-use
exports. It also investigates whether certain imports harm,
or threaten to harm, national security (Section 232).
 The Economic Development Administration (EDA) manages
Trade Adjustment Assistance (TAA) for firms (targets
adjustment to import competition and trade liberalization).
 The Bureau of Economic Analysis (BEA) and Census Bureau
collect, analyze, and disseminate trade data.
The U.S. Department of Agriculture
USDA aims to promote and regulate U.S. agricultural trade,
weighing in on agriculture issues in U.S. trade negotiations.
 The Animal and Plant Health Inspection Service (APHIS)
works to prevent plant and animal pests and diseases from
entering U.S. borders.
 The Food Safety and Inspection Service (FSIS) regulates U.S.
meat, poultry, and egg products, including imports.
 The Foreign Agricultural Service (FAS) administers U.S.
agricultural export financing and assistance, U.S. quotas
against agricultural imports, and TAA for farmers.
i U.S. Department of Health and Human Services
HHS weighs in on trade policy issues that can affect public
health, such as food products (not regulated by USDA),
cosmetics, drugs, and medical devices. HHS's Food and Drug
Administration (FDA) regulates products produced
domestically and abroad for safety, security, and efficacy.
@ U.S. Department of Homeland Security

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