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Updated  February 22, 2024


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


Background
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. U.S. trade policy also affects the overall
U.S. economy   and standard of living of Americans, as well
as specific sectors, firms, and workers. U.S. trade policy
involves a range of functions and multiple agencies with
different roles in implementing those functions.

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. Further aims
have included support for economic development   in
developing countries and expansion of U.S. influence
abroad. With ongoing  debate about issues such as the
effects of trade liberalization, approaches to support U.S.
innovation, technological leadership, and critical supply
chains, and new trade and investment restrictions against
China  and Russia, Congress may  deliberate on the future
direction of U.S. trade policy and the effectiveness of its
components.  See CRS  In Focus IF10156,  U.S. Trade
Policy: Background  and Current  Issues.

The  U.S. Constitution gives Congress power over U.S.
trade policy, specifically to levy tariffs and regulate foreign
commerce.  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. At the same time, Congress retains a key role in
overseeing and shaping U.S. trade policy and outcomes.

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.

Key FederaL Trade Agencies
U.S. trade agencies and functions are highlighted below.
Program  operations may vary (e.g., due to authorization
status), and some aspects are subject to ongoing
congressional debate.
     E 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. laws 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 trade-related agencies, and of 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.
     DDepartment   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) to help U.S. firms
  affected by import competition and trade liberalization.
 The Bureau of Economic Analysis (BEA) and Census Bureau
  collect, analyze, and disseminate trade data.

SA      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.

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