International Trade and Finance: Overview and Issues for the 115th Congress

Summary

The U.S. Constitution grants authority to Congress to regulate commerce with foreign nations. Congress exercises this authority in numerous ways, including through oversight of trade policy and consideration of legislation to implement trade agreements and authorize trade programs. Policy issues cover areas such as U.S. trade negotiations; U.S. trade and economic relations with specific regions and countries; international institutions focused on trade; tariff and nontariff barriers; worker dislocation due to trade liberalization; enforcement of trade laws; import and export policies; international investment; economic sanctions; and other trade-related functions of the federal government. Congress also has authority over U.S. financial commitments to international financial institutions and oversight responsibilities for trade- and finance-related agencies of the U.S. government.

Major Actions in the 114th Congress

The 114th Congress passed legislation that:

renewed Trade Promotion Authority (TPA) through July 1, 2021 (subject to passage of an extension disapproval resolution in 2018), allowing implementing legislation for trade agreements to be considered under expedited legislative procedures, provided that certain statutory requirements are met;

reauthorized Trade Adjustment Assistance (TAA), the Export-Import Bank (Ex-Im Bank), and several U.S. trade preference programs on a multi-year basis;

reauthorized the U.S. Customs and Border Protection (CBP); and

authorized U.S. participation in quota and governance reforms at the International Monetary Fund (IMF).

Additionally, Congress continued its oversight of the Administration’s ongoing trade agreements and negotiations, and maintained economic sanctions against Iran, Cuba, Russia, and other countries, among other actions. Members also introduced a range of legislation on international trade and finance issues.

Possible Issues in the 115th Congress

During the 2016 presidential election campaign, U.S. trade policy and trade agreements received significant attention, particularly regarding the impact of trade agreements on the U.S. economy and workers. Among the more potentially prominent international trade and finance issues the 115th Congress may consider are:

the effects of trade on the U.S. economy, jobs, and manufacturing, as well as policies that support U.S. workers and industries adversely affected by trade agreements;

the future of U.S. trade policy in Asia, given President-elect Donald Trump’s November 2016 statement he intends to “issue our notification of intent to withdraw from the Trans-Pacific Partnership” (TPP);

the status of negotiations for the proposed Transatlantic Trade and Investment Partnership (T-TIP) FTA with the European Union (EU);

proposals to renegotiate or withdraw from existing FTAs, including the North American Free Trade Agreement (NAFTA), or launch new bilateral trade negotiations, such as with the United Kingdom;

oversight of World Trade Organization (WTO) agreements and negotiations, including the completed Trade Facilitation Agreement (TFA) and expansion of the Information Technology Agreement (ITA), as well as potential agreements on environmental goods and trade in services;

U.S.-China trade relations, including investment issues, intellectual property rights (IPR) protection, currency issues, and market access liberalization;

responses to currency manipulation and the enforcement of U.S. trade laws;

international finance and investment issues, including oversight of international financial institutions (IFIs), the creation of development and infrastructure banks by emerging economies, and U.S. negotiations on new bilateral investment treaties (BITs), notably with China and India; and

oversight of international trade and finance policies to support development and/or foreign policy goals, including sanctions on Iran, Cuba, North Korea, Russia, and other countries.