Updated December 7, 2022
U.S. Trade Policy Functions: Who Does What?
At the nexus of foreign and domestic policy, U.S. trade
Congress also aimed to address concerns that trade interests
policy comprises a distinct set of issues that shape U.S.
were being overlooked under the State Department’s
participation in the global economy and relations with
historical lead. Milestones in USTR’s evolution include the:
trading partners. U.S. trade policy also affects the overall
Trade Expansion Act of 1962. Created an ambassador-level
U.S. economy and standard of living of Americans, as well
Special Representative for Trade Negotiations (precursor to
as specific sectors, firms, and workers. U.S. trade policy
USTR) to lead the new interagency system to coordinate
involves a range of functions and multiple agencies with
trade policy, which the act also created.
different roles in implementing those functions.
Trade Act of 1974. Designated the Special Representative as
the chief U.S. trade negotiator, lead of the trade agreements
U.S. trade policy historically has focused on supporting
program, and head of the new private sector advisory
economic growth and jobs through more open and rules-
committee system, which the act also created. Elevated
based trade by negotiating and enforcing reciprocal trade
position to cabinet rank and placed it in the White House.
agreements and other measures, while offering relief to
Trade Agreements Act of 1979. Required the President to
specific segments of the U.S. economy affected by trade
submit a trade reorganization plan, including to boost the
liberalization and “unfair” foreign trade practices. U.S.
Special Representative’s coordination and functional roles.
trade policy also has aimed to promote trade and
Omnibus Trade and Competitiveness Act of 1988. Elevated
investment, while regulating these flows for national
USTR to coordinate trade policy, serve as the President’s
security, health, safety, and other reasons. Additional aims
principal trade advisor and trade “spokesperson,” and lead
have included support for economic development in
U.S. international trade negotiations. Required USTR to
developing countries and expansion of U.S. influence
report to both the President and Congress.
abroad. With ongoing policy debate about the benefits and
costs of trade liberalization, and a rise in trade
protectionism amid global developments, such as the
Coronavirus Disease 2019 (COVID-19) pandemic,
Commerce conducts many non-agricultural trade functions.
Members of Congress may deliberate on the future
The International Trade Administration (ITA), supported by
direction of U.S. trade policy and its components. (See CRS
U.S. and foreign commercial service officers, provides
Report R45148, U.S. Trade Policy Primer: Frequently
market research, business connections, and other services
to promote U.S. exports and attract foreign investment. It
Asked Questions.)
also conducts antidumping and countervailing duty (AD/
CVD) investigations to address potential adverse effects on
The Constitution gives Congress primacy over trade policy,
U.S. industry of “unfair” foreign trade practices, and
specifically the power to levy tariffs and regulate foreign
monitors foreign compliance with U.S. trade agreements.
commerce. By contrast, the President lacks specific
The Bureau of Industry and Security (BIS) administers
authority over trade, but has power over foreign affairs. The
licensing and civil enforcement functions for dual-use
executive branch’s role in trade stems from the President’s
exports. It also investigates whether certain imports harm,
power to negotiate treaties with other nations, and
or threaten to harm national security (“Section 232”).
legislative grants of authority to adjust tariff rates and
The Economic Development Administration (EDA) manages
implement trade policy. Congress and the President have
Trade Adjustment Assistance (TAA) for firms (targets
delegated many trade functions to the Office of the U.S.
adjustment to import competition and trade liberalization).
Trade Representative (USTR) and other executive branch
The Bureau of Economic Analysis (BEA) and Census Bureau
departments and agencies. USTR-led interagency and
col ect, analyze, and disseminate trade data.
advisory systems support their trade functions.
Key Federal Trade Agencies
USDA aims to promote and regulate U.S. agricultural trade,
Key trade agencies and functions are highlighted below.
weighing in on agriculture issues in U.S. trade negotiations.
Program status may vary, e.g., due to authorization status.
The Animal and Plant Health Inspection Service (APHIS)
works to prevent plant and animal pests and diseases from
entering U.S. borders.
USTR, a Cabinet-level official in the Executive Office of the
The Food Safety and Inspection Service (FSIS) regulates U.S.
President, is the President’s principal advisor on trade policy,
meat, poultry, and egg products, including imports.
chief U.S. trade negotiator, and head of the interagency trade
policy coordinating process. USTR administers U.S. law to
The Foreign Agricultural Service (FAS) administers U.S.
agricultural export financing and assistance, U.S. quotas
combat “unfair” foreign trade practices (e.g., “Section 301”),
against agricultural imports, and TAA for farmers.
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 the trade-related agencies, and domestic stakeholders.
HHS weighs in on trade policy issues that can affect public
health, such as food products (not regulated by USDA),
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U.S. Trade Policy Functions: Who Does What?
cosmetics, drugs, and medical devices. HHS’s Food and Drug
State Trade Expansion Program (STEP) administers grants for
Administration (FDA) regulates products produced
states to conduct trade show exhibits, training workshops, and
domestically and abroad for safety, security, and efficacy.
other activities to help small businesses.
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
facilitates 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 negotiations and
percolate up if consensus fails or key issues are at stake:
enforcement, co-leads with USTR the U.S. bilateral investment
The Trade Policy Staff Committee (TPSC), chaired by
treaty program, advocates for U.S. business interests abroad,
USTR and composed of senior civil servants, develops
and 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
security implications, and administers U.S. sanctions via the
Managed by USTR, with USDA, Commerce, and Labor
Office of Foreign Assets Control (OFAC).
collaboration, the system has 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
development of less-developed countries by providing
U.S. trade policy and agreements for the overall
financing, political risk insurance, equity support, and technical
national interest. Members represent key sectors.
assistance. It seeks to support development impact, U.S.
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 Agricultural
Technical Advisory Committees (ATACs) and Industry
Ex-Im Bank finances and insures U.S. exports of goods and
Trade Advisory Committees (ITACs).
services. It aims to fil in gaps in private sector support and/or
to counter foreign government-backed export credit
Other interagency and advisory bodies seek to provide
competition. It supports exporters of all sizes and in a range of
support on specific trade matters.
sectors.
Issues for Congress
Policy issues on which Congress may deliberate include
considerations in granting, or adjusting trade policy
ITC investigates AD/CVD cases (with ITA), safeguard cases on
authority that it has granted, to the executive branch;
temporary relief from import surges of “fairly” traded goods
how best to ensure that trade functions and agency
(“Section 201”), and alleged violations of U.S. intellectual
roles are well-coordinated and effective to advance
property rights (IPR) (“Section 337”). It provides trade analysis
policy aims; and
to Congress, the President, and USTR; and maintains the U.S.
how to gauge whether trade functions and agency roles
Harmonized Tariff Schedule (HTS).
reflect and balance diverse stakeholder views and
support a coherent U.S. trade policy voice.
SBA conducts certain trade and export promotion financing
for U.S. small businesses (terms vary from Ex-Im Bank). SBA’s
https://crsreports.congress.gov
U.S. Trade Policy Functions: Who Does What?
Shayerah I. Akhtar, Specialist in International Trade and
Finance
IF11016
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https://crsreports.congress.gov | IF11016 · VERSION 6 · UPDATED