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1 1 (July 31, 2024)

handle is hein.crs/goveqdk0001 and id is 1 raw text is: Updated July 31, 2024 Presidential Authority to Address Tariff Barriers in Trade Agreements The U.S. Constitution grants Congress the power to regulate trade with foreign nations and to lay and collect duties. Since the 1930s, Congress has periodically authorized the President to negotiate trade agreements and, among other actions, proclaim changes to U.S. tariff rates- known as Trade Promotion Authority (TPA). For example, Section 103(a) of the Bipartisan Congressional Trade Priorities and Accountability Act of 2015 (TPA-2015) authorized the President to enter into trade agreements with foreign countries to reduce duties or other import restrictions that the President determines are unduly burdening and restricting the United States' foreign trade and to proclaim limited changes to U.S. tariff rates without further congressional action. In December 2020, President Donald Trump implemented a trade agreement with the European Union regarding tariff barriers using his proclamation authority under Section 103(a) of TPA-2015. TPA-2015 expired on July 1, 2021. Congress may consider whether to authorize tariff changes without congressional action in any future TPA legislation. story of Author ty Section 103(a) of TPA-2015 was the most recent congressional delegation of authority to the executive branch to negotiate trade agreements and proclaim adjustments to customs duties. The first instance was the Reciprocal Trade Agreements Act of 1934 (RTAA). Passed during the Great Depression, the RTAA authorized the President to enter into foreign trade agreements with foreign governments and to proclaim, without further congressional action, limited modifications to U.S. customs duties and import restrictions. Over the next several decades, presidents negotiated dozens of bilateral trade agreements addressing tariff barriers and implemented those agreements by proclamation. While the RTAA was primarily used for bilateral agreements, President Harry Truman negotiated and implemented by proclamation the multilateral General Agreement on Tariffs and Trade (GATT-the precursor to the World Trade Organization) using RTAA authority. By the late 1960s, nontariff barriers (e.g., regulatory barriers or subsidies) had become the focus of multilateral trade negotiations. Rather than authorize the President to proclaim nontariff-related changes to U.S. law, Congress included procedures in the Trade Act of 1974 through which the President could negotiate agreements addressing such barriers and obtain expedited consideration of implementing legislation if certain criteria were met. Alongside these new procedures, Congress continued to authorize the President to negotiate and implement agreements addressing only tariff barriers without further congressional action. Timeline of Changes to Presidential Trade Agreement Proclamation Authorities 1934 Section 350(a) of the Reciprocal Trade Agreements Act of 1934 authorized the President to negotiate bilateral, reciprocal trade agreements and proclaim changes to U.S. tariff rates of up to 50% of existing rates without further congressional action. Renewed II times. 1962 Section 201 of the Trade Expansion Act of 1962, like the RTAA, authorized the President to enter into trade agreements and proclaim changes to U.S. tariff rates of up to 50% of existing rates. Additionally, Section 20 1 placed no limits on presidential reductions in tariff rates that were already less than 5%. 1975 Section 101 of the Trade Act of 1974 authorized the President to proclaim reductions in U.S. tariff rates of up to 60% of existing rates (with no limits on rates already below 5%) and to increase tariffs by up to 20% of existing rates. While this authority expired in 1979, Section I24(a) provided limited residual authority for an additional two years. 1988 Section I 102(a) of the Omnibus Trade and Competitiveness Act of 1988 authorized the President to proclaim reductions in U.S. tariff rates of up to 50% of existing rates (with no limits on rates already below 5%). The 1988 Act limited the President's ability to increase tariffs as part of such an agreement. Several new technical limitations were also introduced. 2002 Section 2103(a) of the Trade Act of 2002 authorized the President to proclaim reductions in U.S. tariff rates of up to 50% of existing rates (with no limits on rates already below 5%). Several new technical limitations were also introduced. 2015 Section 103(a) of the Bipartisan Congressional Trade Priorities and Accountability Act of 2015 authorizes the President to proclaim reductions in U.S. tariff rates of up to 50% of existing rates (with no limits on rates already below 5%). Several new technical limitations were also introduced. The result was a bifurcation in trade negotiating authority between agreements affecting tariff barriers and those affecting both tariffs and nontariff barriers. Section 103(a) of TPA-2015 provided authority to negotiate agreements addressing tariff barriers and implement those agreements without congressional approval. Section 103(b) of TPA- 2015 provided authority to negotiate agreements addressing tariff and nontariff barriers, and set out the procedures to implement those agreements with congressional approval. n ressbn I Res arch ServTc rmin tim orb flv~. deb te c. 1.14

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