Updated February 22, 2024
U.S. Trade Policy Functions: Who Does What?
Background
combat “unfair” foreign trade practices (e.g., “Section 301”),
and trade preference programs for developing countries.
At the nexus of foreign and domestic policy, U.S. trade
policy comprises a distinct set of issues that shape U.S.
In creating and elevating USTR, Congress aimed to balance
participation in the global economy and relations with
competing interests between U.S. domestic and foreign policy,
trading partners. U.S. trade policy also affects the overall
among trade-related agencies, and of domestic stakeholders.
Congress also aimed to address concerns that trade interests
U.S. economy and standard of living of Americans, as well
were being overlooked under the State Department’s
as specific sectors, firms, and workers. U.S. trade policy
historical lead. Milestones in USTR’s evolution include the
involves a range of functions and multiple agencies with
different roles in implementing those functions.
• Trade Expansion Act of 1962. Created an ambassador-level
Special Representative for Trade Negotiations (precursor to
U.S. trade policy historically has focused on supporting
USTR) to lead the new interagency system to coordinate
economic growth and jobs through more open and rules-
trade policy, which the act also created.
based trade by negotiating and enforcing reciprocal trade
• Trade Act of 1974. Designated the Special Representative as
agreements and other measures, while offering relief to
the chief U.S. trade negotiator, lead of the trade agreements
specific segments of the U.S. economy affected by trade
program, and head of the new private sector advisory
liberalization and “unfair” foreign trade practices. U.S.
committee system, which the act also created. Elevated
trade policy also has aimed to promote trade and
position to cabinet rank and placed it in the White House.
investment, while regulating these flows for national
• Trade Agreements Act of 1979. Required the President to
security, health, safety, and other reasons. Further aims
submit a trade reorganization plan, including to boost the
have included support for economic development in
Special Representative’s coordination and functional roles.
developing countries and expansion of U.S. influence
• Omnibus Trade and Competitiveness Act of 1988. Elevated
abroad. With ongoing debate about issues such as the
USTR to coordinate trade policy, serve as the President’s
effects of trade liberalization, approaches to support U.S.
principal trade advisor and trade “spokesperson,” and lead
innovation, technological leadership, and critical supply
U.S. international trade negotiations. Required USTR to
chains, and new trade and investment restrictions against
report to both the President and Congress.
China and Russia, Congress may deliberate on the future
direction of U.S. trade policy and the effectiveness of its
components. See CRS In Focus IF10156, U.S. Trade
Commerce conducts many non-agricultural trade functions.
Policy: Background and Current Issues.
• The International Trade Administration (ITA), supported by
U.S. and foreign commercial service officers, provides
The U.S. Constitution gives Congress power over U.S.
market research, business connections, and other services
trade policy, specifically to levy tariffs and regulate foreign
to promote U.S. exports and attract foreign investment. It
commerce. The President lacks specific authority over
also conducts antidumping and countervailing duty (AD/
trade, but has power over foreign affairs. The executive
CVD) investigations to address potential adverse effects on
branch’s role in trade stems from the President’s power to
U.S. industry of “unfair” foreign trade practices, and
negotiate treaties with other nations, and legislative grants
monitors foreign compliance with U.S. trade agreements.
of authority to adjust tariff rates and implement trade
• The Bureau of Industry and Security (BIS) administers
policy. At the same time, Congress retains a key role in
licensing and civil enforcement functions for dual-use
overseeing and shaping U.S. trade policy and outcomes.
exports. It also investigates whether certain imports harm,
or threaten to harm, national security (“Section 232”).
Congress and the President have delegated many trade
• The Economic Development Administration (EDA) manages
functions to the Office of the U.S. Trade Representative
Trade Adjustment Assistance (TAA) to help U.S. firms
(USTR) and other executive branch departments and
affected by import competition and trade liberalization.
agencies. USTR-led interagency and advisory systems
• The Bureau of Economic Analysis (BEA) and Census Bureau
support their trade functions.
col ect, analyze, and disseminate trade data.
Key Federal Trade Agencies
U.S. trade agencies and functions are highlighted below.
USDA aims to promote and regulate U.S. agricultural trade,
Program operations may vary (e.g., due to authorization
weighing in on agriculture issues in U.S. trade negotiations.
status), and some aspects are subject to ongoing
• The Animal and Plant Health Inspection Service (APHIS)
congressional debate.
works to prevent plant and animal pests and diseases from
entering U.S. borders.
• The Food Safety and Inspection Service (FSIS) regulates U.S.
USTR, a Cabinet-level official in the Executive Office of the
meat, poultry, and egg products, including imports.
President, is the President’s principal advisor on trade policy,
chief U.S. trade negotiator, and head of the interagency trade
policy coordinating process. USTR administers U.S. laws to
https://crsreports.congress.gov
U.S. Trade Policy Functions: Who Does What?
• The Foreign Agricultural Service (FAS) administers U.S.
agricultural export financing and assistance, U.S. quotas
against agricultural imports, and TAA for farmers.
USAID focuses on economic matters affecting U.S. relations
with developing countries. It manages trade capacity building
programs to promote economic growth in developing
HHS weighs in on trade policy issues that can affect public
countries, reduce poverty, and support trade liberalization.
health, such as food products (not regulated by USDA),
cosmetics, drugs, and medical devices. HHS’s Food and Drug
Administration (FDA) regulates products produced
TDA aims to support U.S. jobs by linking U.S. firms to export
domestically and abroad for safety, security, and efficacy.
opportunities for infrastructure and other projects in emerging
economies. It funds feasibility studies, reverse trade missions
to bring foreign buyers to the United States, and other project
DHS seeks to secure U.S. borders while enabling legitimate
preparation/partnership-building activities.
trade. Customs and Border Protection (CBP) of DHS
facilitates the flow of goods through U.S. ports of entry. CBP
col ects tariffs and enforces trade laws at the border. It works
ITC investigates AD/CVD cases (with ITA), safeguard cases on
with DHS’s Immigration and Customs Enforcement (ICE).
temporary relief from import surges of “fairly” traded goods
(“Section 201”), and alleged violations of U.S. intellectual
property rights (IPR) (“Section 337”). It provides trade analysis
DOL provides U.S. representation in international negotiations
to Congress, the President, and USTR; and maintains the U.S.
before the International Labor Organization (ILO), monitors
Harmonized Tariff Schedule (HTS).
compliance with the labor chapters of U.S. trade agreements,
tracks eligibility for certain trade preferences, and administers
Interagency and Advisory Systems
the TAA program for workers.
Established by Congress in 1962, a USTR-led interagency
system supports trade policy coordination. Members draw
from key trade agencies and White House bodies. As it has
State oversees U.S. trade and economic relationships through
evolved, the system has tiers through which trade matters
its bureaus and embassies to advance U.S. trade policy
percolate up. The Trade Policy Staff Committee (TPSC),
consistent with national security and foreign policy priorities.
chaired by USTR and composed of senior civil servants,
It supports U.S. trade agreement negotiations and
develops and reviews policy and negotiating documents. If
enforcement, co-leads with USTR the U.S. bilateral investment
consensus fails or key issues are at stake, matters may be
treaty program, advocates for U.S. business interests abroad,
referred to the USTR-chaired Trade Policy Review Group
and licenses U.S. munitions exports, among other things.
(TPRG), which coordinates at the Deputy USTR/Assistant
Secretary level, or to the Cabinet level.
Treasury is the lead agency on international economic matters.
An advisory committee system, established by Congress in
For U.S. trade agreement negotiations, it leads on currency
1974, brings public and private input to U.S. trade policy
provisions, and jointly leads with USTR on financial services. It
and trade negotiating objectives. Managed by USTR—with
heads U.S. participation in the G-20 and G-7 forums, chairs the
USDA, Commerce, and Labor collaboration—the system
Committee on Foreign Investment in the United States
has up to approximately 700 advisors.
(CFIUS) to examine inbound investment for national security
• The high-level President’s Advisory Committee for
implications, and administers U.S. sanctions via the Office of
Foreign Assets Control (OFAC). Per an August 2023
Trade Policy and Negotiations (ACTPN) examines
executive order, Treasury is to develop a program to prohibit
U.S. trade policy and agreements for the overall
or require notification of certain outbound investments that
national interest. Members represent key sectors.
may have national security risks.
• Policy advisory committees (agricultural, inter-
governmental, labor, Africa, and environment)
examine issues from their specific policy lens.
DFC aims to promote private investment generally in less-
• Sectoral and technical input comes from Agricultural
developed countries by providing financing, political risk
Technical Advisory Committees (ATACs) and Industry
insurance, equity support, and technical assistance. It seeks to
Trade Advisory Committees (ITACs).
support development impact in partner countries and to
Other interagency and advisory bodies provide support on
advance U.S. economic and U.S. foreign policy objectives.
specific trade matters.
Issues for Congress
Ex-Im Bank finances and insures U.S. exports to support U.S.
Policy issues on which Congress may deliberate include
jobs. It aims to fil gaps in private sector support and/or to
• whether to adjust trade authorities that it has granted to
counter foreign government-backed export credit
the executive vis-à-vis the congressional role;
competition. It supports exporters of all sizes and sectors.
• how to ensure that trade functions and agency roles are
well-coordinated and effectively advance policy aims;
• whether trade agency roles present any issues of
SBA conducts certain trade and export promotion financing
for U.S. small businesses (terms vary from Ex-Im Bank). SBA’s
overlap and whether their operations are efficient; and
•
State Trade Expansion Program (STEP) administers grants for
how best to balance diverse stakeholder views and
states to conduct trade show exhibits, training workshops, and
support a coherent U.S. trade policy voice.
other activities to help small businesses.
https://crsreports.congress.gov
U.S. Trade Policy Functions: Who Does What?
•
IF11016
Shayerah I. Akhtar, Specialist in International Trade and
Finance
Disclaimer
This document was prepared by the Congressional Research Service (CRS). CRS serves as nonpartisan shared staff to
congressional committees and Members of Congress. It operates solely at the behest of and under the direction of Congress.
Information in a CRS Report should not be relied upon for purposes other than public understanding of information that has
been provided by CRS to Members of Congress in connection with CRS’s institutional role. CRS Reports, as a work of the
United States Government, are not subject to copyright protection in the United States. Any CRS Report may be
reproduced and distributed in its entirety without permission from CRS. However, as a CRS Report may include
copyrighted images or material from a third party, you may need to obtain the permission of the copyright holder if you
wish to copy or otherwise use copyrighted material.
https://crsreports.congress.gov | IF11016 · VERSION 8 · UPDATED