Updated January 14, 2022
U.S. Trade Policy Functions: Who Does What?
At the nexus of foreign and domestic policy, U.S. trade
Trade Act of 1974. Designated the Special Representative as
policy comprises a distinct set of issues that shape U.S.
the chief U.S. trade negotiator, lead of the trade agreements
participation in the global economy and relations with
program, and head of the new private sector advisory
trading partners. It also affects the overall U.S. economy
committee system, which the act also created. Elevated
and standard of living of Americans, as well as specific
position to cabinet rank and placed it in the White House.
sectors, firms, and workers.
Trade Agreements Act of 1979. Required the President to
submit a trade reorganization plan, including to boost the
Controversial at times, U.S. trade policy historically has
Special Representative’s coordination and functional roles.
focused on supporting economic growth and jobs through
more open and rules-based trade by negotiating and
Omnibus Trade and Competitiveness Act of 1988. Elevated
enforcing reciprocal trade agreements and other measures,
USTR to coordinate trade policy, serve as the President’s
while offering relief to specific segments of the U.S.
principal trade advisor and trade “spokesperson,” and lead
economy affected by trade liberalization and “unfair”
U.S. international trade negotiations. Required USTR to
foreign trade practices. U.S. trade policy also has aimed to
report to both the President and Congress.
promote trade and investment, while regulating these flows
for national security, health, safety, and other reasons.
Additional aims have included to support economic
Commerce conducts many non-agricultural trade functions.
development in developing countries and expand U.S.
The International Trade Administration (ITA), supported by
influence abroad. With ongoing congressional and public
U.S. and foreign commercial service officers, provides
debate about the benefits and costs of trade liberalization,
market research, business connections, and other services
and a rise in trade protectionism globally amid certain
to promote U.S. exports and attract foreign investment. It
developments, the future direction of U.S. trade policy is an
also conducts antidumping and countervailing duty (AD/
open question.
CVD) investigations to address potential adverse effects on
U.S. industry of “unfair” foreign trade practices, and
The Constitution gives Congress primacy over trade policy,
monitors foreign compliance with U.S. trade agreements.
specifically the power to levy tariffs and regulate foreign
The Bureau of Industry and Security (BIS) administers
commerce. By contrast, the President lacks specific
licensing and civil enforcement functions for dual-use
authority over trade, but has power over foreign affairs. The
exports. It also investigates whether certain imports harm,
executive branch’s role in trade stems from the President’s
or threaten to harm, national security (“Section 232”).
power to negotiate treaties with other nations, and
The Economic Development Administration (EDA) manages
legislative grants of authority to adjust tariff rates and
Trade Adjustment Assistance (TAA) for firms (targets
implement trade policy. Congress and the President have
adjustment to import competition and trade liberalization).
delegated many trade functions to the Office of the U.S.
The Bureau of Economic Analysis (BEA) and Census Bureau
Trade Representative (USTR) and other executive branch
col ect, analyze, and disseminate trade data.
departments and agencies. USTR-led interagency and
advisory systems support their trade functions.
Key Trade Agencies
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)
USTR, a Cabinet-level official in the Executive Office of the
works to prevent plant and animal pests and diseases from
President, is the President’s principal advisor on trade policy,
entering U.S. borders.
chief U.S. trade negotiator, and head of the interagency trade
The Food Safety and Inspection Service (FSIS) regulates U.S.
policy coordinating process. USTR administers U.S. law to
meat, poultry, and egg products, including imports.
combat “unfair” foreign trade practices (e.g., “Section 301”),
The Foreign Agricultural Service (FAS) administers U.S.
and trade preference programs for developing countries. In
agricultural export financing and assistance, U.S. quotas
creating and elevating USTR, Congress aimed to balance
against agricultural imports, and TAA for farmers.
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
HHS weighs in on trade policy issues that can affect public
historical lead. Milestones in USTR’s evolution include the:
health, such as food products (not regulated by USDA),
cosmetics, drugs, and medical devices. HHS’s Food and Drug
Trade Expansion Act of 1962. Created an ambassador-level
Administration (FDA) regulates products produced
Special Representative for Trade Negotiations (precursor to
domestically and abroad for safety, security, and efficacy.
USTR) to lead the new interagency system to coordinate
trade policy, which the act also created.
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U.S. Trade Policy Functions: Who Does What?
DHS seeks to secure U.S. borders while enabling legitimate
USAID focuses on economic matters affecting U.S. relations
trade. Customs and Border Protection (CBP) of DHS
with developing countries. It manages trade capacity building
regulates the flow of goods through U.S. ports of entry. It
programs to promote economic growth in developing
col ects tariffs and enforces trade laws at the border. It works
countries, reduce poverty, and support trade liberalization.
with DHS’s Immigration and Customs Enforcement (ICE).
TDA aims to support U.S. jobs by linking U.S. firms to export
DOL provides U.S. representation in international negotiations
opportunities for infrastructure and other projects in emerging
before the International Labor Organization (ILO), monitors
economies. It funds feasibility studies, reverse trade missions
compliance with the labor chapters of U.S. trade agreements,
to bring foreign buyers to the United States, and other project
tracks eligibility for certain trade preferences, and administers
preparation/partnership-building activities.
the TAA program for workers.
Interagency and Advisory Systems
Established by Congress in 1962, a USTR-led interagency
State oversees U.S. trade and economic relationships through
system supports trade policy coordination. Members draw
its bureaus and embassies to advance U.S. trade policy
from key trade agencies and White House bodies. As it has
consistent with national security and foreign policy priorities.
evolved, the system has three tiers through which matters
It supports U.S. trade agreement negotiation and enforcement,
percolate up if consensus fails or key issues are at stake:
co-leads with USTR the U.S. bilateral investment treaty
The Trade Policy Staff Committee (TPSC), chaired by
program, advocates for U.S. business interests abroad, and
USTR and composed of senior civil servants, develops
licenses U.S. munitions exports, among other things.
and reviews policy and negotiating documents.
The USTR-chaired Trade Policy Review Group
(TPRG) coordinates at the Deputy USTR/Assistant
Treasury is the lead agency on international economic matters.
Secretary level.
For U.S. trade agreement negotiations, it leads on currency
The National Economic Council (NEC), led by the
provisions, and jointly leads with USTR on financial services. It
President, currently coordinates Cabinet-level review.
heads U.S. participation in the G-20 and G-7 forums, manages
An advisory committee system, established by Congress in
the Committee on Foreign Investment in the United States
1974, brings public and private input to trade policy.
(CFIUS) to examine potential inbound investment for national
Managed by USTR, with USDA, Commerce, and Labor
security implications, and administers U.S. sanctions via the
Office of Foreign Assets Control (OFAC).
collaboration, the system has 26 committees with up to
approximately 700 advisors.
The high-level President’s Advisory Committee for
Trade Policy and Negotiations (ACTPN) examines
DFC aims to promote private investment to aid the economic
U.S. trade policy and agreements for the overall
development of less-developed countries by providing
financing, political risk insurance, equity support, and technical
national interest. Members represent key sectors.
assistance. It seeks to support development impact, U.S.
Five policy advisory committees (agricultural, inter-
economic interests, and U.S. foreign policy.
governmental, labor, Africa, and environment)
examine issues from their specific policy lens.
Sectoral and technical input comes from 6 Agricultural
Technical Advisory Committees (ATACs) and 14
Ex-Im Bank finances and insures U.S. exports of goods and
Industry Trade Advisory Committees (ITACs).
services, aiming to fil in gaps in private sector support and/or
to counter foreign officially-backed export credit competition.
Other interagency and advisory bodies seek to provide
It supports exporters of all sizes and in a range of sectors.
support on specific trade matters.
Issues for Congress
Policy issues that the 117th Congress may consider include:
ITC investigates AD/CVD cases (with ITA), safeguard cases on
How much authority should Congress grant to the
temporary relief from import surges of “fairly” traded goods
executive branch over trade policy?
(“Section 201”), and alleged violations of U.S. intellectual
Are current functions and agency roles adequate and
property rights (IPR) (“Section 337”). It provides trade analysis
well-coordinated to advance trade policy? Do they
to Congress, the President, and USTR; and maintains the U.S.
reflect and balance diverse stakeholder views and
Harmonized Tariff Schedule (HTS).
support a coherent U.S. trade policy voice?
How well has the current structure responded to
changes in the global marketplace? Is it equipped to
SBA conducts certain trade and export promotion financing
support potential future changes to U.S. trade policy?
for U.S. small businesses (terms vary from Ex-Im Bank). SBA’s
For more information, see CRS Report R45148, U.S. Trade
State Trade Expansion Program (STEP) administers grants for
Policy Primer: Frequently Asked Questions.
states to conduct trade show exhibits, training workshops, and
other activities to help small businesses.
Shayerah I. Akhtar, Specialist in International Trade and
Finance
IF11016
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U.S. Trade Policy Functions: Who Does What?
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https://crsreports.congress.gov | IF11016 · VERSION 4 · UPDATED