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Commerce, Justice, Science, and Related Agencies Appropriations (CJS): Trade-Related Agencies

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. Commerce, Justice, Science, and Related Agencies Appropriations (CJS): Trade-Related Agencies M. Angeles Villarreal Specialist in International Trade and Finance April 6, 2015 Congressional Research Service 7-5700 www.crs.gov R43970 c11173008 CJS Appropriations: Trade-Related Agencies . Summary This report tracks and describes actions taken by the Administration and Congress to provide FY2016 appropriations for the International Trade Administration (ITA) of the U.S. Department of Commerce, the U.S. International Trade Commission (USITC), and the Office of the United States Trade Representative (USTR). These three trade-related agencies are part of the Commerce, Justice, Science, and Related Agencies (CJS) appropriations process. The report also provides an overview of three trade-related programs that are administered by ITA, USITC, and USTR.  Agencies January 7, 2016 (R43970) Jump to Main Text of Report

Summary

This report tracks and describes actions taken by the Administration and Congress to provide FY2016 appropriations for the International Trade Administration (ITA) of the U.S. Department of Commerce, the U.S. International Trade Commission (USITC), and the Office of the United States Trade Representative (USTR). These three trade-related agencies are part of the Commerce, Justice, Science, and Related Agencies (CJS) appropriations process. The report also provides an overview of three trade-related programs that are administered by ITA, USITC, and USTR.

The Consolidated and Further Continuing Appropriations Act, 2015 (P.L. 113-235) provided a total of $600.8 million for the three agencies, including $462.0 million for ITA, $84.5 million for USITC, and $54.3 million for USTR. TheFor FY2016, the Administration requestsrequested $684.6 million for FY2016 for the three agencies, which isan amount 13.9% moregreater than what Congress appropriated for FY2015. The request includesincluded a one-time increase of $83.8 million (55.6%) in funding for USITC for costs associated with securing space for the agency following the expiration of its current lease in August 2017. Key issues that may be of interest to Congress are the Administration’s efforts regarding China antidumping and countervailing duty enforcement and compliance activities, the Interagency Trade Enforcement Center, and efforts to attract foreign investment to the United States. The budget request includes a $6.0 million increase for ITA to support the Interagency Trade Enforcement Center (ITEC), led by both USTR and ITA, which would increase funding by 66.7% over the FY2015 level. The FY2016 request also includes a $10.0 million increase, a proposed 100% increase, for ITA’s SelectUSA program to help attract foreign direct investment to the United States. c11173008 Congressional Research Service CJS Appropriations: Trade-Related Agencies . Contents Introduction...................................................................................................................................... 1 FY2015 and FY2016 Appropriations for Trade-Related Agencies.................................................. 1 International Trade Administration (ITA) .................................................................................. 2 Global Markets Unit ............................................................................................................ 3 Industry and Analysis .......................................................................................................... 3 Enforcement and Compliance ............................................................................................. 3 U.S. International Trade Commission (USITC) ........................................................................ 4 Office of the U.S. Trade Representative (USTR) ...................................................................... 4 Selected Trade-Related Programs and Activities ............................................................................. 5 China Trade Enforcement and Compliance Activities............................................................... 5 SelectUSA Program ................................................................................................................... 5 Interagency Trade Enforcement Center ..................................................................................... 5 Overview of Issues .......................................................................................................................... 6 Tables Table 1. Appropriations for CJS Trade-Related Agencies, FY2015 and FY2016 ........................... 2 Table A-1. Budget Authority for ITA by Unit: FY2005-FY2015 .................................................... 7 Table A-2. Budget Authority for USITC and USTR: FY2005-FY2015 .......................................... 8 Table A-3. Budget Authority for Selected Trade-Related Programs ................................................ 8 Appendixes Appendix. Budget Authority Tables ................................................................................................ 7 Contacts Author Contact Information............................................................................................................. 9 c11173008 Congressional Research Service CJS Appropriations: Trade-Related Agencies . Introduction This report tracks and provides an overview of actions taken by the Administration and Congress to provide appropriations for trade-related agencies under the Commerce, Justice, Science, and Related Agencies (CJS) appropriations process.1 It provides an overview of the Administration’s FY2016 budget request and enacted FY2015 appropriations for the International Trade Administration (ITA), the U.S. International Trade Commission (USITC), and the Office of the United States Representative (USTR), as a part of the annual appropriation for CJS. Issues that may be of interest to Congress include the Administration’s efforts regarding China antidumping and countervailing duty enforcement and compliance activities and the Interagency Trade Enforcement Center (ITEC). Congress may also be interested in the Administration’s efforts to attract foreign direct investment to the United States through the SelectUSA program. This report will be updated as events warrant. FY2015 and FY2016 Appropriations for TradeRelated Agencies On December 16, 2014, President Obama signed into law the Consolidated and Further August 2017.

The House passed the FY2016 CJS appropriations bill (H.R. 2578) on June 3, 2015. The House-passed bill included $597.8 million for CJS trade-related agencies, an amount 0.5% less than the FY2015 enacted amount and 12.7% less than the Administration's FY2016 request. The Senate Committee on Appropriations approved its FY2016 CJS appropriations bill, which was offered as an amendment in the nature of a substitute to H.R. 2578, on June 16, 2015. The Senate committee-reported bill recommended $601.8 million for the three CJS trade-related agencies, an amount 0.2% greater than the FY2015 enacted amount, 12.1% less than the Administration's FY2016 request, and 0.7% greater than the House-passed amount. The Senate Committee on Appropriations recommended that USTR be consolidated into the Department of Commerce and that funding for this agency be moved to the Department of Commerce heading.

On December 18, 2015, President Obama signed into law the Consolidated Appropriations Act, 2016 (P.L. 114-113). Division B of the act provides $483.0 million for ITA, $88.5 for USITC, and $54.5 million for USTR. The FY2016 appropriation for the three CJS trade-related agencies is $626.0 million, an amount 4.2% greater than the FY2015 appropriation, but 8.6% less than the Administration's request.

Commerce, Justice, Science, and Related Agencies Appropriations (CJS): Trade-Related Agencies

Introduction

This report tracks and provides an overview of actions taken by the Administration and Congress to provide FY2016 appropriations for trade-related agencies under the Commerce, Justice, Science, and Related Agencies (CJS) appropriations process.1 It also provides an overview of the enacted FY2015 appropriations for the International Trade Administration (ITA), the U.S. International Trade Commission (USITC), and the Office of the United States Representative (USTR), as a part of the annual appropriation for CJS.

This report provides only an overview of the appropriations for the three trade-related agencies under the CJS appropriations process. For a more detailed review of the appropriations for all CJS agencies, see CRS Report R43918, Overview of FY2016 Appropriations for Commerce, Justice, Science, and Related Agencies (CJS), by [author name scrubbed].

FY2015 and FY2016 Appropriations for Trade-Related Agencies On December 16, 2014, President Obama signed into law the Consolidated and Further
Continuing Appropriations Act, 2015 (P.L. 113-235). The act provided a total of $61.753 billion for the agencies and bureaus funded by the annual CJS appropriations act in FY2015, including $600.8 million for three trade-related agencies. The Administration requestsrequested a total of $66.382 billion for CJS for FY2016. The Administration's request would bewas 7.5% more than what Congress appropriated for FY2015.22 For the three trade-related agencies, the Administration requests requested $684.6 million for FY2016, an increase of 13.9% over the FY2015 amount. Table 1 shows the FY2015 enacted appropriations and the Administration’s FY2016 request for these agencies. 1 The annual Commerce, Justice, Science, and Related Agencies (CJS) appropriations act provides funding for the Departments of Commerce and Justice, the science agencies, and several related agencies. Appropriations for the Department of Commerce include funding for the International Trade Administration (ITA). The annual appropriation for the related agencies includes funding for numerous agencies, including the U.S. International Trade Commission (USITC), and the Office of the United States Trade Representative (USTR). 2 See CRS Report R43918, Overview of FY2016 Appropriations for Commerce, Justice, Science, and Related Agencies (CJS), by Nathan James. c11173008 Congressional Research Service 1 CJS Appropriations: Trade-Related Agencies . Table 1. Appropriations for CJS Trade-Related Agencies, FY2015 and FY2016 ($ in millions) CJS Trade-Related Agency International Trade Administration FY2015 Enacted FY2016 Request $462.0a $496.8a U.S. International Trade Commission $84.5 $131.5 Office of the U.S. Trade Representative $54.3 $56.3 $600.8 $684.6 Total FY2016 House Passed FY2016 Senate Passed FY2016 Enacted Source: The House recommended $597.8 million for the three CJS trade-related agencies for FY2016, an amount 12.7% less than the Administration's request and 0.5% less than the enacted amount for FY2015. The Senate committee-reported bill recommended $601.8 million for the three CJS trade-related agencies, an amount 0.2% greater than the FY2015 enacted amount, 12.1% less than the Administration's FY2016 request, and 0.7% greater than the House-passed amount. On December 18, 2015, President Obama signed into law the Consolidated Appropriations Act, 2016 (P.L. 114-113). Division B of the act (the Commerce, Justice, Science, and Related Agencies Appropriations Act, 2016) provides $626.0 million for the three CJS trade-related agencies, an amount 4.2% greater than the FY2015 appropriation, but 8.6% less than the Administration's request. The FY2016-enacted appropriation is 4.7% greater than the amount recommended by the House and 4.0% greater than the amount recommended by the Senate. Table 1 shows the FY2015-enacted appropriations, the Administration's FY2016 request for these agencies, and the FY2016-enacted appropriations. Table 1. Appropriations for CJS Trade-Related Agencies, FY2015 and FY2016

($ in millions)

CJS Trade-Related Agency

FY2015 Enacted

FY2016 Request

FY2016 House Passed

FY2016 Senate Committee-Reported

FY2016 Enacted

Department of Commerce:

          International Trade Administrationa

$462.0

$496.8

$457.0

$463.0a

$483.0

Office of the U.S. Trade Representative

      $54.3b  

Trade-Related Agencies:

         

Office of the U.S. Trade Representative

$54.3

$56.3

$54.3

b

$54.5

U.S. International Trade Commission

$84.5

$131.5

$86.5

$84.5

$88.5

Total

$600.8

$684.6

597.8

$601.8

$626.0

Source:
The FY2015 enacted amounts were taken from the Joint Explanatory Statement to accompany P.L. 113235113-235, printed in the December 11, 2014, Congressional Record (pp. H9342-H9363). The FY2016 requested amounts were taken from the FY2016 budget submissions from the International Trade Administration, U.S. International Trade Commission, and the Office of the U.S. Trade Representative. a. Appropriation amounts for ITA include The House-passed amounts were taken from the text of H.R. 2578 and H.Rept. 114-130. The Senate committee-reported amounts were taken from S.Rept. 114-66. The FY2016-enacted amounts were taken from the joint explanatory statement to accompany P.L. 114-113, printed in the December 17, 2015, Congressional Record (pp. H9732-H9759). a. Appropriation amounts for ITA include an additional $10.0 million in user fees, which would raise available funds to $472.0 million in FY2015 and $506.8 million in FY2016. International Trade Administration (ITA) ITA is a part of the Department of Commerce, whose mission is to promote “job creation, $472.0 million in FY2015, $506.8 million in the FY2016 request, $467.0 million in the FY2016 House passed amount, up to $473.0 million in the Senate committee-reported amount, and $493.0 million in the FY2016-enacted amount. b. The Senate Committee on Appropriations recommended that the Office of the United States Trade Representative be consolidated into the Department of Commerce. The committee also recommended that the DOC provide a plan to Congress that would allow the USTR to continue functioning as the chief trade negotiator for the United States. International Trade Administration (ITA) ITA is a part of the Department of Commerce, whose mission is to promote "job creation, economic growth, sustainable development and improved standards of living ... by working in partnership with businesses, universities, communities and ... workers.”3"3 ITA's mission is to improve U.S. prosperity by strengthening the competitiveness of U.S. industry, promoting trade and investment, and ensuring compliance with trade laws and agreements. ITA provides export promotion services, works to ensure compliance with trade agreements, administers trade remedies such as antidumping and countervailing duties, and provides analytical support for ongoing trade negotiations. ITA went through a major organizational change in October 2013 in which it consolidated four organizational units4units4 into three more functionally-aligned units, which include: include (1) Global Markets; (2) Industry and Analysis; and (3) Enforcement and Compliance. ITA also has a fourth organizational unit, the Executive and Administrative Directorate, which is responsible for providing policy leadership, information technology support, and administration services for all of ITA.5 5 Table A-1 shows budget amounts for ITA by unit between FY2005 and FY2015. The FY2015 CJS Appropriations Act provided $462.0 million for ITA in direct funding, with an additional $10.0 million in user fees, for a total of $472.0 million in available funds. The Administration’ Administration's request for FY2016 iswas $496.8 million, an increase of 7.5% over the FY2015 enacted amount (not including user fees). The request includes an additional $10.0 million in user 3 U.S. Department of Commerce, About the Department of Commerce, http://www.commerce.gov/about-departmentcommerce. 4 ITA’s four organizational units prior to FY2014 included Manufacturing and Service; Market Access and Compliance; Import Administration; and Trade Promotion and the U.S. & Foreign Commercial Service. 5 International Trade Administration (ITA), About the International Trade Administration, http://www.trade.gov. c11173008 Congressional Research Service 2 CJS Appropriations: Trade-Related Agencies . fees, the same amount as in FY2015, which would raise total available funds to $506.8 million for FY2016.6 Global Markets Unit ITA’s Global Markets unit combines country and regional experts, both overseas and domestically, and specific trade promotion programs to provide U.S. firms with country-specific export promotion services and market access advocacy. The unit also promotes the United States as an investment destination. It is designed to advance U.S. commercial interests by engaging with foreign governments and U.S. businesses, identifying and resolving country-specific market barriers, and leading interagency efforts that advocate for U.S. firms with foreign governments. It also is also designed to help promote U.S. exports by developing and implementing policies and programs to increase market access in foreign countries for U.S. goods and services and by providing various types of direct assistance to U.S. firms, especially small and medium-sized enterprises. For FY2016, ITA requests $334.4 million and 1,122 full time employees (FTEs) for the Global Markets unit, a net increase of $4.7 million and 9 FTEs over the previous year.7 Industry and Analysis ITA’s Industry and Analysis unit brings together ITA’s industry, trade, and economic experts to advance the competitiveness of U.S. industries through the development and execution of international trade and investment policies, export promotion strategies, and investment promotion. It develops economic and international policy analysis in an effort to improve market access for U.S. businesses, and designs and implements trade and investment promotion programs. The unit serves as the primary liaison between U.S. industries and the government on trade and investment promotion. It administers programs that support small and medium-sized enterprises, such as the Market Development Cooperator Program. For FY2016, ITA requests $58.3 million and 248 FTEs for the Industry and Analysis unit, a net increase of $1.0 million and the same number of FTEs compared to the previous year.8 Enforcement and Compliance The mission of ITA’s Enforcement and Compliance unit is to enforce U.S. trade laws and ensure compliance with negotiated international trade agreements. It promotes the administration of U.S. antidumping and countervailing trade law remedies; addresses trade-distorting practices; promotes disciplines and practices by U.S. trading partners that enhance transparency and impartiality; and administers the Foreign Trade Zone program and other U.S. import programs. It represents and advocates on behalf of U.S. industries on issues regarding trade enforcement and compliance. 6 ITA, Budget Estimates for Fiscal Year 2016, February 2015, pp. 5-7. Ibid., p. 53. 8 Ibid., p. 19. 7 c11173008 Congressional Research Service 3 CJS Appropriations: Trade-Related Agencies . For FY2016, ITA requests a total of $80.7 million and 348 FTEs for Enforcement and Compliance, an increase of $6.2 million and 18 FTEs over the previous year.9 U.S. International Trade Commission (USITC) USITC is an independent federal agency with broad investigative responsibilities on matters related to international trade. The mission of the agency is to “(1) administer U.S. trade remedy laws within its mandate in a fair and objective manner; (2) provide the President, USTR, and Congress with independent analysis, information, and support on matters of tariffs, international trade, and U.S. competitiveness; and (3) maintain the Harmonized Tariff Schedule of the United States.” 10 USITC’s activities include investigating the effects of dumped and subsidized imports on domestic industries; conducting global safeguard investigations; and adjudicating disputes involving imported goods that allegedly infringe U.S. intellectual property rights. Through such proceedings, the agency helps to facilitate a rules-based international trading system. USITC also serves as a federal resource for trade data and other trade policy information. It provides such information and analysis to Congress, the President, and USTR to facilitate the development of U.S. trade policy. USITC also makes most of this information available to the public to promote understanding of competitiveness, international trade issues, and the role that international trade plays in the U.S. economy. As a matter of policy, its budget request is submitted to Congress by the President without revision. USITC received $84.5 million for FY2015. The Administration’s request for USITC for FY2016 is $131.5 million, of which $42.7 million is a one-time cost related to the transition to a new office plan. The FY2016 request is 55.6% more than the FY2015 enacted amount.11 Office of the U.S. Trade Representative (USTR) USTR, located in the Executive Office of the President, is responsible for developing and coordinating U.S. international trade and direct investment policies. USTR is the President’s chief negotiator for international trade agreements, including commodity and direct investment negotiations. It negotiates directly with foreign governments to create trade agreements, resolve disputes, and participate in global trade policy organizations such as the World Trade Organization. It also meets with business groups, policymakers, and public interest groups on trade policy issues.12 USTR is leading free trade agreement (FTA) negotiations for the United States for the proposed Trans-Pacific Partnership agreement (TPP) and for the proposed Transatlantic Trade and Investment Partnership (T-TIP). It is also monitoring the implementation of existing FTAs such as the U.S.-South Korea and U.S.-Colombia FTAs. 9 Ibid., pp. 33 and 89. U.S. International Trade Commission (USITC), About the USITC, http://www.usitc.gov. 11 USITC, Budget Justification Fiscal Year 2016, February 2016. The budget does not provide information on staff level estimates. 12 Office of the United States Trade Representative (USTR), About Us, http://www.ustr.gov. 10 c11173008 Congressional Research Service 4 CJS Appropriations: Trade-Related Agencies . The FY2015 CJS Appropriations Act provided $54.3 million for USTR. The Administration’s request for FY2016 is $56.3 million and an estimated 240 FTEs, a proposed increase of 3.7% and 7 FTEs over the FY2015 enacted amount.13 Selected Trade-Related Programs and Activities Over the past decade, Congress has provided funding for specific trade-related programs under the CJS trade-related agencies. These programs have sought to address areas of congressional interest, including: China trade enforcement and compliance activities; trade promotion and attracting foreign direct investment to the United States through ITA’s SelectUSA program; and the Interagency Trade Enforcement Center (ITEC) established by the President in 2012. China Trade Enforcement and Compliance Activities Since 2004, Congress has dedicated some of ITA’s funding to antidumping and countervailing duty enforcement and compliance activities with respect to China and other non-market economies. ITA’s Office of China Compliance was established on January 23, 2004, under the included an additional $10.0 million in user fees, the same amount as in FY2015, which would have raised total available funds to $506.8 million for FY2016.6 The House recommended $457.0 million in direct appropriations for ITA, an amount 8.0% less than the Administration's request and 1.1% less than the enacted amount for FY2015. The House anticipated the collection of $10.0 million in user fees, which would have raised total available funds to $467.0 million. The Senate Committee on Appropriations recommended $463.0 million for ITA in direct funding, $1.0 million above the FY2015 enacted level, $33.8 million, or 6.8%, below the FY2016 budget request, and 1.3% above the House recommendation. The Senate committee report anticipated the collection of $10.0 million in user fees, which would have raised total available funds to $473.0 million.

The FY2016 appropriation for ITA is $483.0 million, with an additional $10.0 million in user fees, for a total of $493 million in available funds. The FY2016 appropriation is 4.5% more than the FY2015-enacted amount and 2.8% less than the Administration's FY2016 request.

Global Markets Unit

ITA's Global Markets unit combines country and regional experts, both overseas and domestically, and specific trade promotion programs to provide U.S. firms with country-specific export promotion services and market access advocacy. The unit also promotes the United States as an investment destination. It is designed to advance U.S. commercial interests by engaging with foreign governments and U.S. businesses, identifying and resolving country-specific market barriers, and leading interagency efforts that advocate for U.S. firms with foreign governments. It also is also designed to help promote U.S. exports by developing and implementing policies and programs to increase market access in foreign countries for U.S. goods and services and by providing various types of direct assistance to U.S. firms, especially small and medium-sized enterprises.

For FY2016, ITA requested $334.4 million and 1,122 full time employees (FTEs) for the Global Markets unit, a net increase of $4.7 million and 9 FTEs over the previous year.7

Industry and Analysis

ITA's Industry and Analysis unit brings together ITA's industry, trade, and economic experts to advance the competitiveness of U.S. industries through the development and execution of international trade and investment policies, export promotion strategies, and investment promotion. It develops economic and international policy analysis in an effort to improve market access for U.S. businesses, and designs and implements trade and investment promotion programs. The unit serves as the primary liaison between U.S. industries and the government on trade and investment promotion. It administers programs that support small and medium-sized enterprises, such as the Market Development Cooperator Program.

For FY2016, ITA requested $58.3 million and 248 FTEs for the Industry and Analysis unit, a net increase of $1.0 million and the same number of FTEs compared to the previous year.8

Enforcement and Compliance

The mission of ITA's Enforcement and Compliance unit is to enforce U.S. trade laws and ensure compliance with negotiated international trade agreements. It promotes the administration of U.S. antidumping and countervailing trade law remedies; addresses trade-distorting practices; promotes disciplines and practices by U.S. trading partners that enhance transparency and impartiality; and administers the Foreign Trade Zone program and other U.S. import programs. It represents and advocates on behalf of U.S. industries on issues regarding trade enforcement and compliance.

For FY2016, ITA requested a total of $80.7 million and 348 FTEs for Enforcement and Compliance, an increase of $6.2 million and 18 FTEs over the previous year.9

U.S. International Trade Commission (USITC)

USITC is an independent federal agency with broad investigative responsibilities on matters related to international trade. The mission of the agency is to "(1) administer U.S. trade remedy laws within its mandate in a fair and objective manner; (2) provide the President, USTR, and Congress with independent analysis, information, and support on matters of tariffs, international trade, and U.S. competitiveness; and (3) maintain the Harmonized Tariff Schedule of the United States."10 USITC's activities include investigating the effects of dumped and subsidized imports on domestic industries; conducting global safeguard investigations; and adjudicating disputes involving imported goods that allegedly infringe U.S. intellectual property rights. Through such proceedings, the agency helps to facilitate a rules-based international trading system. USITC also serves as a federal resource for trade data and other trade policy information. It provides such information and analysis to Congress, the President, and USTR to facilitate the development of U.S. trade policy. USITC also makes most of this information available to the public to promote understanding of competitiveness, international trade issues, and the role that international trade plays in the U.S. economy. As a matter of policy, its budget request is submitted to Congress by the President without revision.

USITC received $84.5 million for FY2015. The Administration's request for USITC for FY2016 was $131.5 million, of which $42.7 million was a one-time cost related to the transition to a new office plan. The FY2016 request was 55.6% more than the FY2015 enacted amount.11 The House recommended $86.5 million in direct appropriations for USITC, an amount 34.2% less than the Administration's request and 2.4% more than the enacted amount for FY2015. The Senate Committee on Appropriations recommended $84.5 million for the USITC, the same as the FY2015 enacted amount, 35.7% less than the FY2016 request, and 2.3% less than the House passed bill.

The FY2016 appropriation for USITC is $88.5 million, 4.7% more than the FY2015-enacted amount and 32.7% less than the Administration's FY2016 request.

Office of the U.S. Trade Representative (USTR)

USTR, located in the Executive Office of the President, is responsible for developing and coordinating U.S. international trade and direct investment policies. USTR is the President's chief negotiator for international trade agreements, including commodity and direct investment negotiations. It negotiates directly with foreign governments to create trade agreements, resolve disputes, and participate in global trade policy organizations such as the World Trade Organization. It also meets with business groups, policymakers, and public interest groups on trade policy issues.12 USTR was leading free trade agreement (FTA) negotiations for the United States for the proposed Trans-Pacific Partnership agreement (TPP) and is currently leading the negotiations for the proposed Transatlantic Trade and Investment Partnership (T-TIP). It is also monitoring the implementation of existing FTAs such as the U.S.-South Korea and U.S.-Colombia FTAs.

The FY2015 CJS Appropriations Act provided $54.3 million for USTR. The Administration's request for FY2016 was $56.3 million and an estimated 240 FTEs, a proposed increase of 3.7% and 7 FTEs over the FY2015 enacted amount.13 The House recommended $54.3 million in direct appropriations for USTR, an amount 3.6% less than the Administration's request and equal to the enacted amount for FY2015. The Senate committee-reported bill recommended $54.3 million for USTR, an amount equal to the FY2015 enacted amount and the House recommended amount for USTR. The Senate Committee on Appropriations recommended that USTR be consolidated into the Department of Commerce and that USTR funding be moved under the Department of Commerce heading.

The FY2016 appropriation for USTR is $54.5 million, 0.5% more than the FY2015-enacted amount and 3.1% less than the Administration's FY2016 request.

Selected Trade-Related Programs and Activities

Over the past decade, Congress has provided funding for specific trade-related programs under the CJS trade-related agencies. These programs have sought to address areas of congressional interest, including China trade enforcement and compliance activities; trade promotion and attracting foreign direct investment to the United States through ITA's SelectUSA program; and the Interagency Trade Enforcement Center (ITEC) established by the President in 2012.

China Trade Enforcement and Compliance Activities Since 2004, Congress has dedicated some of ITA's funding to antidumping and countervailing duty enforcement and compliance activities with respect to China and other non-market economies. ITA's Office of China Compliance was established on January 23, 2004, under the
Consolidated Appropriations Act of 2004 (P.L. 108-199). Its primary role was to enforce U.S. antidumping and countervailing duty laws and to develop and implement other policies and programs aimed at countering unfair foreign trade practices in China. ITA's China Countervailing Duty Group was established in FY2009 to accommodate the workload that resulted from the application of countervailing duty law to imports from non-market economy countries.14 See 14 The House-passed bill and the Senate Committee on Appropriations report both recommended $16.4 million in appropriations for FY2016 for China antidumping and countervailing duty enforcement and compliance activities. See Table A-3 for FY2005FY2006 through FY2015FY2016 budget authority for ITA's China antidumping and countervailing duty enforcement and compliance activities—including the Office of China Compliance and the China Countervailing Duty Group. SelectUSA Program

The enacted FY2016 appropriation includes $16.4 million for China antidumping and countervailing duty enforcement and compliance activities, the same amount as the House and Senate recommendations.

SelectUSA Program
Created in 2011, SelectUSA is part of ITA's Global Markets unit. It coordinates investmentrelatedinvestment-related resources across more than 20 federal agencies to promote the United States as an investment market and to address investor climate concerns that may impede investment in the United States. It serves as an information resource for international investors and advocates for U.S. cities, states, and regions. ITA is requestingrequested $20.0 million for FY2016 to implement further the SelectUSA program, an increase of $10.0 million over the FY2015 amount.15 Table A-3 shows SelectUSA funding levels for FY2012 through FY2015. Interagency Trade Enforcement Center 15 The Senate Committee on Appropriations recommended that up to $10.0 million be provided for SelectUSA for FY2016, except that none of the funds provided may be used to facilitate foreign direct investment in the United States unless a protocol to ensure that SelectUSA activities do not encourage such investments in the United States by state-owned entities is delivered to the committee within 30 days of enactment of the CJS bill for FY2016.16 Table A-3 shows SelectUSA funding levels for FY2012 through FY2015. Interagency Trade Enforcement Center On February 28, 2012, President Barack Obama signed Executive Order 13601 establishing the ITEC to advance U.S. foreign trade policy through strengthened and coordinated enforcement of 13 Executive Office of the President, USTR, Congressional Budget Submission, February 2015. House Committee Report 111-149, Commerce, Justice, Science, and Related Agencies Appropriations Bill, 2010, pp. 10-11. 15 Ibid., p. 57. 14 c11173008 Congressional Research Service 5 CJS Appropriations: Trade-Related Agencies . U.S. trade rights under international trade agreements and enforcement of U.S. trade laws.16 The President’17 The President's goal is to take a "whole-of-government" approach to monitoring and enforcing U.S. trade rights around the world by using expertise from across the federal government.1718 The ITEC is led by a Director designated by USTR and a Deputy Director designated by the Secretary of Commerce. The ITEC coordinates interagency trade enforcement matters among USTR and the Departments of Commerce, State, Treasury, Justice, Agriculture, and Homeland Security, as well as the Office of the Director of National Intelligence, and other agencies that the President or USTR may designate. ITA works closely with the ITEC to identify issues and develop information in areas of economic importance to U.S. industries. Funding for the ITEC is appropriated through ITA. The FY2016 budget request for the ITEC iswas $15.0 million, an increase of $6.0 million over the FY2015 funding amount.18 See 19 The Senate Committee on Appropriations recommended up to $10.0 million for the ITEC, an amount $1.0 million above the FY2016 enacted amount and $5.0 million less than the FY2016 request. See Table A-3 for FY2012 through FY2015 FY2016 budget authority for the ITEC. Overview of Issues Issues that Congress may considerhave considered while debating the FY2016 funding levels for the three CJS trade-related agencies could include: • may have included the following:Whether to approve a one-time 55.6% increase in funding for USITC for costs associated with securing office space for the agency following the expiration of its current lease in August 2017.
  • Whether to consider consolidating commercial and trade-related agencies in order to increase efficiency.
  • Whether to provide an additional $10.0 million (100% increase), as requested by the Administration, for ITA's for ITA’s SelectUSA program to help attract foreign investment to the United States. Whether to provide an increase of $6.0 million (67% increase), as requested by the Administration, for ITA to support the ITEC led by USTR and ITA. Whether Congress should continue to provide funding for ITA's China antidumping and countervailing duty enforcement and compliance activities. 16 Executive Order 13601, "Establishment of the Interagency Trade Enforcement Center," vol. 77 (Washington: GPO, 2012). 17 Office of the United States Trade Representative, Interagency Trade Enforcement Center (ITEC), https://www.ustr.gov. 18 ITA, Budget Estimates Fiscal Year 2016, p. 40. c11173008 Congressional Research Service 6 . Appendix. Budget Authority Tables Table A-1. Budget Authority for ITA by Unit: FY2005-FY2015 ($ in millions) FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 Manufacturing and Services 47.9 46.8 47.1 40.5 48.6 49.5 48.9 46.5 42.3 — — Market Access and Compliance 42.0 41.4 41.6 41.4 42.3 43.2 42.6 42.6 39.9 — — Import Administration 61.7 59.4 59.8 62.7 66.4 68.3 67.4 69.8 70.9 — — 215.1 224.2 223.7 235.4 237.7 258.4 254.9 269.8 261.7 — — Industry and Analysis — — — — — — — — — 54.9 55.5 Enforcement and Compliance — — — — — — — — — 70.6 71.6 Global Markets — — — — — — — — — 312.0 311.8 Executive and Administration 25.7 25.5 25.7 25.1 25.4 27.3 26.9 26.9 23.7 23.1 23.1 392.4 397.3 397.8 405.2 420.4 446.8 440.7 455.6 438.5 460.6 462.0 Trade Promotion and the U.S. & Foreign Commercial Service Total ITA Source: Budget office, International Trade Administration (ITA), U.S. Department of Commerce. Notes: In 2014, ITA went through a reorganization in which four units (Manufacturing and Services, Market Access and Compliance, Import Administration, and the U.S. & Foreign Commercial Service) were restructured into three units: Industry and Analysis, Enforcement and Compliance, and Global Markets. c11173008 CRS-7 . Table A-2. Budget Authority for USITC and USTR: FY2005-FY2015 ($ in millions) FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 USITC 60.9 62.0 62.0 68.4 75.1 81.9 81.7 80.0 78.9 83.0 84.5 USTR 41.0 44.2 44.2 44.1 47.3 47.8 47.7 51.3 47.6 52.6 54.3 Source: S.Rept. 109-188; S.Rept. 109-280; H.Rept. 110-240 and P.L. 110-28; House Committee on Appropriations' committee print on the Omnibus Appropriations Act, 2009 (P.L. 111-8), Division B; H.Rept. 111-149; S.Rept. 111-229; H.Rept. 112-169; H.Rept. 112-463 antidumping and countervailing duty enforcement and compliance activities. Budget Authority Tables Table A-1. Budget Authority for ITA by Unit: FY2006-FY2016

    ($ in millions)

     

    FY 2006

    FY 2007

    FY 2008

    FY 2009

    FY 2010

    FY 2011

    FY 2012

    FY 2013

    FY 2014

    FY 2015

    FY 2016

    Manufacturing and Services

    46.8

    47.1

    40.5

    48.6

    49.5

    48.9

    46.5

    42.3

    Market Access and Compliance

    41.4

    41.6

    41.4

    42.3

    43.2

    42.6

    42.6

    39.9

    Import Administration

    59.4

    59.8

    62.7

    66.4

    68.3

    67.4

    69.8

    70.9

    Trade Promotion and the U.S. & Foreign Commercial Service

    224.2

    223.7

    235.4

    237.7

    258.4

    254.9

    269.8

    261.7

    Industry and Analysis

    54.9

    55.5

    Enforcement and Compliance

    70.6

    71.6

    Global Markets

    312.0

    311.8

    Executive and Administration

    25.5

    25.7

    25.1

    25.4

    27.3

    26.9

    26.9

    23.7

    23.1

    23.1

    Total ITA

    397.3

    397.8

    405.2

    420.4

    446.8

    440.7

    455.6

    438.5

    460.6

    462.0

    483.0

    Source: Budget office, International Trade Administration (ITA), U.S. Department of Commerce.

    Notes: In 2014, ITA went through a reorganization in which four units (Manufacturing and Services, Market Access and Compliance, Import Administration, and the U.S. & Foreign Commercial Service) were restructured into three units: Industry and Analysis, Enforcement and Compliance, and Global Markets. The FY2016-enacted amounts were taken from the joint explanatory statement to accompany P.L. 114-113, printed in the December 17, 2015, Congressional Record (pp. H9732-H9759).

    Table A-2. Budget Authority for USITC and USTR: FY2006-FY2016

    ($ in millions)

     

    FY 2006

    FY 2007

    FY 2008

    FY 2009

    FY 2010

    FY 2011

    FY 2012

    FY 2013

    FY 2014

    FY 2015

    FY 2016

    USITC

    62.0

    62.0

    68.4

    75.1

    81.9

    81.7

    80.0

    78.9

    83.0

    84.5

    88.5

    USTR

    44.2

    44.2

    44.1

    47.3

    47.8

    47.7

    51.3

    47.6

    52.6

    54.3

    54.5

    Source:; H.Rept. 110-240 and P.L. 110-28; House Committee on Appropriations' committee print on the Omnibus Appropriations Act, 2009 (P.L. 111-8), Division B; H.Rept. 111-149; S.Rept. 111-229; H.Rept. 112-169; H.Rept. 112-463
    ; joint explanatory statement to accompany P.L. 113-76, printed in the January 15, 2014, Congressional Record (pp. H507-H532); joint explanatory statement to accompany P.L. 113-235, printed in the December 11, 2014, Congressional RecordCongressional Record (pp. H9342-H9363). FY2013 post-sequestration amounts were provided by USITC and USTR. The FY2016-enacted amounts were taken from the joint explanatory statement to accompany P.L. 114-113, printed in the December 17, 2015, Congressional Record (pp. H9732-H9759). Notes: FY2013 appropriations include sequestration. Table A-3. Budget Authority for Selected Trade-Related Programs ($ in millions) FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 Office of China Compliance (ITA) $3.0 $3.0 $3.0 $5.9 $7.0 $7.0 $3.0 $7.0 — — — China Countervailing Duty Group (ITA) $0.0 $0.0 $0.0 $0.0 $4.4 $4.4 $0.0 $4.4 — — — China antidumping and countervailing duty enforcement and compliance activities (ITA) — — — — — — — — $16.4 $16.4 $16.4 Select USA (ITA) — — — — — — — $0.9 $0.9 $7.0 $10.0 Interagency Trade Enforcement Center (ITA and USTR) — — — — — — — $3.2 $6.3 $7.5 $9.0 Sources: P.L. 108-447, P.L. 110-161, P.L. 111-117, H.Rept. 111-366

    ($ in millions)

     

    FY 2006

    FY 2007

    FY 2008

    FY 2009

    FY 2010

    FY 2011

    FY 2012

    FY 2013

    FY 2014

    FY 2015

    FY 2016

    Office of China Compliance (ITA)

    $3.0

    $3.0

    $5.9

    $7.0

    $7.0

    $3.0

    $7.0

    China Countervailing Duty Group (ITA)

    $0.0

    $0.0

    $0.0

    $4.4

    $4.4

    $0.0

    $4.4

    China antidumping and countervailing duty enforcement and compliance activities (ITA)

    $16.4

    $16.4

    $16.4

    $16.4

    Select USA (ITA)

    $0.9

    $0.9

    $7.0

    $10.0

    Interagency Trade Enforcement Center (ITA and USTR)

    $3.2

    $6.3

    $7.5

    $9.0

    Sources:, P.L. 110-161, P.L. 111-117, H.Rept. 111-366
    , joint explanatory statements to accompany P.L. 113-76 and P.L. 113-235, and ITA Budget office. The FY2016-enacted amounts were taken from the joint explanatory statement to accompany P.L. 114-113 printed in the December 17, 2015, Congressional Record (pp. H9732-H9759).

    Author Contact Information

    [author name scrubbed], Specialist in International Trade and Finance ([email address scrubbed], [phone number scrubbed])

    Footnotes

    1.

    The annual Commerce, Justice, Science, and Related Agencies (CJS) appropriations act provides funding for the Departments of Commerce and Justice, the science agencies, and several related agencies. Appropriations for the Department of Commerce include funding for the International Trade Administration (ITA). The annual appropriation for the related agencies includes funding for numerous agencies, including the U.S. International Trade Commission (USITC), and the Office of the United States Trade Representative (USTR).

    2.

    See CRS Report R43918, Overview of FY2016 Appropriations for Commerce, Justice, Science, and Related Agencies (CJS), by [author name scrubbed].

    3.

    U.S. Department of Commerce, About the Department of Commerce, http://www.commerce.gov/about-department-commerce.

    4.

    ITA's four organizational units prior to FY2014 included Manufacturing and Service; Market Access and Compliance; Import Administration; and Trade Promotion and the U.S. & Foreign Commercial Service.

    5.

    International Trade Administration (ITA), About the International Trade Administration, http://www.trade.gov.

    6.

    ITA, Budget Estimates for Fiscal Year 2016, February 2015, pp. 5-7.

    7.

    Ibid., p. 53.

    8.

    Ibid., p. 19.

    9.

    Ibid., pp. 33 and 89.

    10.

    U.S. International Trade Commission (USITC), About the USITC, http://www.usitc.gov.

    11.

    USITC, Budget Justification Fiscal Year 2016, February 2016. The budget does not provide information on staff level estimates.

    12.

    Office of the United States Trade Representative (USTR), About Us, http://www.ustr.gov.

    13.

    Executive Office of the President, USTR, Congressional Budget Submission, February 2015.

    14.

    House Committee Report 111-149, Commerce, Justice, Science, and Related Agencies Appropriations Bill, 2010, pp. 10-11.

    15.

    Ibid., p. 57.

    16.

    U.S. Congress, Senate Committee on Appropriations, Subcommittee on Commerce, Justice, Science, and Related Agencies, Departments of Commerce and Justice, and Science, and Related Agencies Appropriations Bill, 2016, 114th Cong., 1st sess., June 16, 2015, Report 115-66 (Washington: GPO, 2015), p. 11.

    17.

    Executive Order 13601, "Establishment of the Interagency Trade Enforcement Center," vol. 77 (Washington: GPO, 2012).

    18.

    Office of the United States Trade Representative, Interagency Trade Enforcement Center (ITEC), https://www.ustr.gov.

    19.

    ITA, Budget Estimates Fiscal Year 2016, p. 40.

    , and ITA Budget office. c11173008 CRS-8 CJS Appropriations: Trade-Related Agencies . Author Contact Information M. Angeles Villarreal Specialist in International Trade and Finance avillarreal@crs.loc.gov, 7-0321 c11173008 Congressional Research Service 9