Commerce, Justice, Science, and Related Agencies Appropriations (CJS): Trade-Related Agencies
Released: 2016-01-07T00:00:00

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. 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 requested a total of $66.382 billion for CJS for FY2016. The Administration's request was 7.5% more than what Congress appropriated for FY2015. For the three trade-related agencies, the Administration requested $684.6 million for FY2016, an increase of 13.9% over the FY2015 amount. 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.

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." 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 units into three more functionally-aligned units, which 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. 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's request for FY2016 was $496.8 million, an increase of 7.5% over the FY2015 enacted amount (not including user fees). The request 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. 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.

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.

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.

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." 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. 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. 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. 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. 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 FY2006 through FY2016 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.

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 investment-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 requested $20.0 million for FY2016 to implement further the SelectUSA program, an increase of $10.0 million over the FY2015 amount. 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. 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 U.S. trade rights under international trade agreements and enforcement of U.S. trade laws. 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. 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 was $15.0 million, an increase of $6.0 million over the FY2015 funding amount. 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 FY2016 budget authority for the ITEC.

Overview of Issues

Issues that Congress may have considered while debating the FY2016 funding levels for the three CJS trade-related agencies 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 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.

Budget Authority Tables