U.S. Trade Policy Functions: Who Does What? (CRS Report for Congress)
| Release Date |
Revised Feb. 22, 2024 |
| Report Number |
IF11016 |
| Report Type |
In Focus |
| Authors |
Shayerah Ilias Akhtar |
| Source Agency |
Congressional Research Service |
| Older Revisions |
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Summary:
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 U.S. economy as a
whole, specific sectors, firms, and workers, and the overall
standard of living of Americans. Cross-cutting in nature,
U.S. trade policy has many “voices” and is controversial at
times. Historically, it 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 import
competition and “unfair” foreign trade practices. It also
aims to promote trade and investment, while regulating
these flows for national security, health, safety, and other
reasons. Other goals are to support economic development
in developing countries and expand U.S. influence abroad.
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
role of the executive branch 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. The Office of the U.S. Trade
Representative (USTR) and many other agencies conduct
U.S. trade and international economic functions under
various statutory and administrative authorities. USTR-led
systems to coordinate U.S. trade policy among the agencies
and obtain input from public and private stakeholders aim
to balance diverse interests to reach a unified U.S.
government “voice” on trade matters. This architecture has
evolved over time to reflect changes in international trade,
the U.S. economic position, and other factors. Periodic
proposals on trade reorganization, as well as newer debates
over the balance of power on trade, have rekindled
congressional interest in examining U.S. trade functions.
