Trade Reorganization Proposal By Turki A. Al Hokail ITRN 603-002

Overview Obama’s Proposed Trade Reorganization to address the Economic Problems Obama asked for the reorganization authority from Congress on January 13, 2012 (Ilias, 2012) Exports have become an increasingly important component of the US economy in a period of severe economic challenges (Trade Promotion Coordinating Committee, 2011) Consolidating 6 Autonomous Agencies for a higher coordination To boost the US Exports To cut government size and spending To support the economy through greater employment opportunities The trade policy needs to promote not only its national issues but it also aims to accommodate to the international changes (Strauss, 1984) A plan to complement the National Export Initiative (NEI), which aims to double the exports till 2015 (U.S. Department of Commerce, 2010).

Legislation USC: Title 12-Banks and Banking USC: Title 15-Commerce and Trade USC: Title 18, Chapter 27 – Customs USC: Title 19 - Customs Duties USC: Title 22- Foreign Relations and Intercourse International Trade Laws

One Issue: Consolidation among the Autonomous Agencies Major Problems Changed power balance in the new department The unique functions of these six autonomous agencies would be suffered Expected imbalance between industry interests and foreign policy Opposition from different interest groups in the Congress Trade functions are scattered across different federal agencies One Issue: Consolidation among the Autonomous Agencies Consolidation of 6 autonomous agencies would be time taking and risky The agencies would have to lose their independence and autonomous status The competing interests between the existing agencies and the government’s intent for the consolidation into one department Contextual differences in the US and the other countries

Policy Proposal All of the proposed and other trade related agencies are required to be assessed on consensus based objective criteria Proposal of three-point Criteria for the inclusion or exclusion of agency from the proposed consolidation Agency’s Performance Agency’s Mission alignment with the National Economic Policy Evaluation of all Functions of the Agency The proposal would result in an efficient trade operations, which would facilitate the domestic US businesses An alignment of the trade functions with the US economic and foreign policies facilitate the country in maintaining competitive advantage

Pros & Cons of proposal Pros Provides a systematic transition to a more effective and efficient trade functions The under-performed agency would be merged while the performing agencies would remain autonomous Cons A time intensive exercise and the trade functions would be suffered during transition phase Subjectivity of the major interest groups while deciding about the inclusion and exclusion of the agency

References Ilias, S., 2012. Trade Reorganization: Overview and Issues for Congress, s.l.: Congressional Research Service. The above report has been used to understand the Obama’s trade reorganization plan. This report explains the plan in a comprehensive way. Ilias, S., Hanrahan, C. E. & Villarreal, M. A., 2013. U.S. Government Agencies Involved in Export Promotion: Overview and Issues for Congress, s.l.: Congressional Research Service. This report describe and analyze the roles of different export promoting US agencies.

Strauss, R. S. , 1984. The Difficult Politics of Trade Reorganization Strauss, R. S., 1984. The Difficult Politics of Trade Reorganization. Berkeley Journal of International Law, 2(1), pp. 129-137. This article provides an overview of the complexities and problems in the trade reorganization Trade Promotion Coordinating Committee, 2011. 2011 National Export Strategy: Powering the National Export Initiative, s.l.: Trade Promotion Coordinating Committee. This report provides details about the national export strategy. U.S. Department of Commerce, 2010. Report to the President on the National Export Initiative: The Export Promotion Cabinet’s Plan for Doubling U.S. Exports in Five Years, s.l.: U.S. Department of Commerce. This report provides a detailed explanation of the National Export Initiative (NEI) and it has been used to understand US initiative and plans for export growth.