Background

The International Trade Administration (ITA), the U.S. International Trade Commission (USITC, or the Commission), and the Office of the United States Trade Representative (USTR) are the three trade-related agencies funded through the annual Commerce, Justice, Science, and Related Agencies (CJS) appropriations.¹ This report provides an overview of these agencies' programs and compares the FY2023 CJS proposals with the previous fiscal year's enacted legislation.² In this report, appropriations are rounded to the nearest thousand. However, for greater accuracy, percentage change and annual differences are calculated using whole, not rounded, numbers; this means that, in some instances, totals may not sum due to rounding and there may be small differences between the actual percentage change and the percentage change that would be calculated by using the rounded amounts.

For FY2022, the Consolidated Appropriations Act, 2022 (P.L. 117-103), provided $740.0 million for the three CJS trade-related agencies, including $559.0 million in direct appropriations for ITA; $110.0 million for USITC; and a total of $71.0 million for USTR.³ The FY2022 appropriations amount was $37.0 million (5.3%) more than the previous year's enacted amount.

In addition to providing funding through regular appropriations, Congress also passed supplemental funding for USTR in Title IX of the United States-Mexico-Canada Agreement Implementation Act (USMCA, P.L. 116-113) in December 2019. USMCA implementing legislation provided a total of $90.0 million for USTR, to remain available until September 30, 2023. The supplemental funds were provided for USTR to monitor compliance with labor and environmental obligations of the agreement and to enforce USMCA environmental obligations, including for state-to-state dispute settlement actions. In this report, funding levels are taken from the regular annual Consolidated Appropriations Acts and do not include supplemental appropriations provided in USMCA.

See the Appendix for enacted budget authority for the trade-related agencies for FY2013-FY2022.

FY2023 Appropriations

For FY2023, the Administration requested a total of $814.2 million in appropriations for the three CJS trade-related agencies (see Table 1). This request was $74.2 million (10.0%) more than the FY2022-enacted amount. The President's budget included $630.8 million in direct appropriations for ITA, $106.8 million for USITC, and a total of $76.5 million for USTR.⁴

The House Appropriations Committee-reported bill (H.R. 8256) proposed a total of $815.3 million in appropriations for the three CJS trade-related agencies. The request was $75.3 million (10.2%) more than the FY2022-enacted level and $1.1 million (0.1%) more than the President's request. The proposal included $617.9 million in direct appropriations for ITA, $122.4 million for USITC, and a total of $75.0 million for USTR.

The Senate-introduced bill (S. 4664) proposed $811.9 million for the three CJS trade-related agencies. The proposal was $71.9 million (9.7%) more than the FY2022-enacted level and $2.2 million less (-0.3%) than the President's request. The bill included $613.0 million in direct appropriations for ITA, $122.4 million for USITC, and a total of $76.5 million for USTR.⁵

The Consolidated Appropriations Act, 2023 (P.L. 117-328), provided a total of $811.4 million in appropriations for the three CJS trade-related agencies. The final agreement was $71.4 million (9.6%) more than the FY2022-enacted level and included $613.0 million in direct appropriations for ITA, $122.4 million for USITC, and a total of $76.0 million for USTR.

International Trade Administration (ITA)⁶

ITA, a bureau within the Department of Commerce, has a mission 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 enforce and ensure compliance with trade laws and agreements, administers trade remedies such as antidumping and countervailing duties, and provides analytical support for ongoing trade negotiations.⁷

ITA is comprised of three primary units: (1) Global Markets, (2) Enforcement and Compliance, and (3) Industry and Analysis. 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 2 outlines the FY2023 budget for ITA by unit. For historical budget amounts for ITA units, see the Appendix.)

ITA is funded through a combination of direct appropriations and user fees collected for certain services. For FY2023, the Administration requested $630.8 million in direct appropriations for ITA, with an additional $12.0 million to be collected in fees, for a total of $642.8 million in authorized spending. The budget request for ITA's direct appropriations was $71.8 million (12.8%) more than the FY2022-enacted direct appropriation.

The House committee-reported bill (H.R. 8256) proposed $617.9 million in direct appropriations for ITA, with an additional $12.0 million to be collected in fees, for a total of $629.9 million in authorized spending. The proposal was $58.9 million (10.5%) more than the amount enacted through FY2022 direct appropriations, and $13.0 million less (-2.1%) than the President's request. Among other program-level priorities, the committee also included language regarding a Ukraine reconstruction plan and directed the Secretary of Commerce and ITA to contribute to plans for a post-conflict rebuilding of Ukraine, specifically "to help facilitate the expansion of the U.S. economic footprint in Ukraine and increase direct engagement with Ukrainian businesses."⁸

The Senate-introduced bill proposed $613.0 million in direct appropriations for ITA, with an additional $12.0 million to be collected in fees, for a total of $625.0 million in authorized spending. The proposal was $54.0 million more (9.7%) than the amount enacted through FY2022 direct appropriations and $17.8 million less (-2.8%) than the President's budget request.

The Consolidated Appropriations Act, 2023 (P.L. 117-328), provided $613.0 million in direct appropriations for ITA, with an additional $12.0 million to be collected in fees, for a total of $625.0 million in authorized spending. The enacted funding is $54.0 million (9.7%) more than the amount enacted through FY2022 direct appropriations, and $17.8 million less than (-2.8%) the President's request.

Global Markets

ITA's Global Markets (GM) unit is a combination of the United States and Foreign Commercial Service (US&FCS) program, which provides export promotion services to U.S. businesses, and the SelectUSA program, which works to attract foreign investment into the United States.⁹ Through US&FCS, GM aims to promote U.S. exports by helping U.S. exporters research foreign markets and identify opportunities abroad. GM's country and regional experts―in domestic and overseas offices—advise U.S. companies on market access, local standards, and regulations. The unit also seeks to help to make business-to-business connections through trade shows, fairs, and missions. GM is designed to advance U.S. commercial interests by engaging with foreign governments and U.S. businesses, identifying and resolving market barriers, and leading efforts that advocate for U.S. firms with foreign governments.

The Administration requested $392.0 million in funding for GM in FY2023. Within this funding, ITA requested an increase of $26.1 million to increase export promotion activities and boost "the United States' ability to counter unfair trade practices and economic coercion by the People's Republic of China." ITA proposed increasing staff in three overseas regions (the Indo-Pacific, the Western Hemisphere, and the Middle East and Africa). The funding proposal included hiring 28 new Foreign Commercial Service Officers and 28 Locally Employed Staff in overseas offices, and an increase of 11 international trade staff in GM's domestic offices.¹⁰

Language in the House committee report accompanying H.R. 8256 proposed $391.8 million for GM and stated that this funding level would support ITA's efforts to increase U.S. export competitiveness and improve the United States' ability to counter China's unfair trade practices.¹¹ The bill included a new provision providing ITA with the authority to establish a minority fellowship program to recruit students from diverse backgrounds for a career with the U.S. Foreign Commercial Service. The committee directed ITA to include an implementation plan for the fellowship program with its FY2023 spend plan.¹² The committee also continued its previous directives for ITA to fully staff the domestic U.S. Export Assistance Centers and report to the committee on staffing levels.¹³

The explanatory text accompanying the Senate-introduced bill did not include a specific overall funding level for GM. It did include language to support the requested level for ITA to increase international commercial engagement efforts, including hiring additional staff and establishing new international offices in regions of strategic importance.¹⁴

The Consolidated Appropriations Act, 2023 (P.L. 117-328) did not provide a specific overall funding level for GM, however language in the joint explanatory text suggests that the House report language holds the same weight as the final agreement.¹⁵ The agreement also provided $1.5 million (an increase of $1.0 million) to support GM's rural export centers.¹⁶ Likewise, the final agreement also included a new provision to provide up to $3.0 million for a pilot fellowship program for US&FCS to recruit minority students.¹⁷

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. The unit is responsible for enforcing U.S. antidumping and countervailing duty (AD/CVD) laws, overseeing a variety of programs and policies regarding the enforcement and administration of U.S. trade remedy laws, assisting U.S. industry and businesses with unfair trade matters, and administering the Foreign-Trade Zone program and other U.S. import programs.¹⁸

For FY2023, the Administration requested $124.6 million in funding for the Enforcement and Compliance unit. The request included a $6.8 million increase for AD/CVD enforcement and for the staffing of a ninth Enforcement Office. ITA cited an increase in the agency's AD/CVD investigations and orders. The request also included an additional $5.0 million to hire more contractors to review tariff exclusion requests from the steel and aluminum tariffs imposed under Section 232 of the Trade Expansion Act.¹⁹ This additional amount would have raised funding for ITA's Section 232 program to $8.0 million in FY2023.²⁰

Language in the House committee report accompanying H.R. 8256 proposed an amount "no less than the fiscal year 2022 enacted level" ($111.6 million).²¹ The committee's recommendation would also support program increases to continue hiring staff for the ninth AD/CVD enforcement office.²²

The Senate-introduced bill did not include a specific funding level for Enforcement and Compliance; however, language in the explanatory text accompanying the bill would have supported specific activities. The proposal included an $8.0 million increase in funding for ITA to review requests for exclusion from the Section 232 steel and aluminum tariffs, and $1.3 million to support implementation of the Aluminum Import Monitoring system. The Senate-introduced bill would have also continued support for the ninth AD/CVD enforcement office.²³

The Consolidated Appropriations Act, 2023 (P.L. 117-328), did not provide a specific overall funding level for the Enforcement and Compliance unit. Language in the Joint Explanatory Statement directed ITA "to submit a report to the Committees, within 180 days of enactment of this act, outlining ITA's efforts to counteract the use of third countries for transshipment by state-backed industries and producers to evade U.S. AD/CVD laws" and provide congressional options.²⁴

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. The unit analyzes economic and international policies to improve market access for U.S. businesses and designs and implements trade and investment promotion programs. It aims to serve as the primary liaison between U.S. industries and the federal government on trade and investment promotion activities. It also administers programs that support small and medium-sized enterprises, such as the Market Development Cooperator Program.

For FY2023, the Administration requested $86.6 million for Industry and Analysis. This request included a $10.9 million increase to fulfill new requirements on supply chain resilience across manufacturing and services industries and a $3.1 million increase to support the Survey of International Air Travelers Program.²⁵ (For more details, see the "Survey of International Air Travelers (SIAT), ITA" section below.)

The House-reported bill did not include a specific funding amount for Industry and Analysis; however, language in the report accompanying the bill would have "support[ed] the requested increase for ITA to fulfill new requirements on supply chain resilience across manufacturing and services industries" and on expanding the Survey of International Air Travelers.²⁶

The Senate-introduced bill did not include a specific funding level for Industry and Analysis.

The Consolidated Appropriations Act, 2023 (P.L. 117-328 ), did not provide a specific overall funding level for Industry and Analysis.

U.S. International Trade Commission (USITC)

USITC is an independent, quasi-judicial agency responsible for conducting trade-related investigations and providing independent technical advice on U.S. international trade policy to Congress, the President, and USTR. The Commission (1) investigates and determines whether imports injure a domestic industry or violate U.S. intellectual property rights; (2) provides independent tariff, trade, and competitiveness-related analysis to the President, Congress, and USTR; and (3) maintains the U.S. tariff schedule. USITC also serves as a federal resource for trade data and other trade policy information. It makes most of its information and analyses available to the public to promote understanding of competitiveness, international trade issues, and the role that international trade plays in the U.S. economy.

USITC's annual budget request to Congress is subject to two types of submission: (1) the President's budget request for the Commission, which is included in the President's annual budget; and (2) the Commission's independent budget request. USITC has the authority to submit its independent budget directly to Congress without revision by the President, pursuant to Section 175 of the Trade Act of 1974.

The President's FY2023 budget requested $106.8 million in funding for USITC, which was $3.2 million less (-2.9%) than the FY2022-enacted funding. The Commission's independent budget submission to Congress requested $122.4 million for FY2023, which was $12.4 million (11.3%) above the FY2022-enacted funding level and $15.6 million above the President's FY2023 request. USITC's independent congressional budget justification outlined an increased volume of AD/CVD cases; increased updates to the Harmonized Tariff Schedule in recent years, due to Administration initiatives (such as Section 232 and Section 301 tariffs, as well as other trade issues); and plans for information technology infrastructure maintenance.²⁷

The House committee-reported bill and the Senate-introduced bill both recommended $122.4 million for USITC, an amount equal to the Commission's independent budget submission.

The Consolidated Appropriations Act, 2023 (P.L. 117-328), provided $122.4 million for USITC for FY2023. The funding was $12.4 million (11.3%) more than the FY2022-enacted amount and $15.6 million (14.6%) more than the President's request, and was equal to the Commission's independent budget submission.

Office of the U.S. Trade Representative (USTR)

USTR has primary responsibility for developing and coordinating U.S. international trade and direct investment policies, as the head of the interagency trade policy coordinating process.²⁸ As part of the Executive Office of the President, USTR is the President's principal advisor on trade policy and the President's chief negotiator for international trade agreements, including commodity and direct investment negotiations. USTR negotiates directly with foreign governments to create trade agreements (which may require legislative approval to enter into effect) and resolve disputes, and it participates 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.²⁹

In addition to providing direct appropriations for USTR, Congress can provide USTR supplementary funding from the congressionally established Trade Enforcement Trust Fund. USTR may use funding from this trust fund for certain trade enforcement activities, authorized by the Trade Facilitation and Trade Enforcement Act of 2015 (P.L. 114-125). See the section below, "Trade Enforcement Trust Fund (TETF), USTR" for more detail.

For FY2023, the Administration requested a total of $76.5 million for USTR, including $61.5 million in direct appropriations for salaries and expenses and $15.0 million to be derived from the TETF for certain trade enforcement activities (see Table 3). The total request was $5.5 million (7.8%) more than the FY2022-enacted funding level.

The House committee-reported bill recommended a total of $75.0 million for USTR, including $60.0 million in direct appropriations for salaries and expenses and $15.0 million to be derived from the TETF for certain trade enforcement activities. The recommendation was $4.0 million (5.6%) more than the previous year's enacted amount and $1.5 million less (-2.0%) than the President's request.

The Senate-introduced bill proposed a total of $76.5 million for USTR, including $61.5 million for salaries and expenses and $15.0 million to be derived from the TETF for certain trade enforcement activities. The bill included a condition that $5.0 million of USTR funding would not be available until USTR has certified to the Committees on Appropriations that it had established a process for U.S. firms to request product exclusions from the tariffs on certain imports from China, imposed under Section 301 of Trade Act of 1974.³⁰ The proposed funding for USTR was $5.5 million (7.8%) more than the FY2022-enacted amount and equal to the President's request.

The Consolidated Appropriations Act, 2023 (P.L. 117-328), provided a total of $76.0 million for USTR, including $61.0 million for salaries and expenses and $15.0 million to be derived from the TETF for certain trade enforcement activities. The total is $5.0 million (7.0%) more than the FY2022-enacted amount, and $500 thousand less (-0.3%) than the President's request.

The Consolidated Appropriations Act, 2023 (P.L. 117-328) also extended availability of the remaining, USMCA-related supplemental funding to USTR, for an additional year.³¹

Selected Trade-Related Programs and Activities

Over the past decade, Congress has provided funding for specific trade-related programs or activities within broader agency budgets. The programs described below have been the focus of recent and ongoing congressional interest: (1) ITA's China trade enforcement and compliance activities; (2) the Survey of International Air Travelers (SIAT) within ITA; and (3) the Trade Enforcement Trust Fund, which funds certain activities of USTR. (See Table A-3 for historical budget authority for these selected programs.)

China Trade Enforcement and Compliance Activities, ITA

Since 2004, Congress has dedicated some of ITA's funding to AD/CVD enforcement and compliance activities with respect to China and other nonmarket economies.³² ITA's Office of China Compliance was established by the Consolidated Appropriations Act, 2004 (P.L. 108-199). Its primary role has been to enforce U.S. AD/CVD 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 by the Consolidated Appropriations Act, 2010 (P.L. 111-117), to accommodate the workload that resulted from the application of countervailing duty law to imports from nonmarket economy countries.³³

ITA's FY2023 budget justification requested $16.4 million, within ITA's budget, for China AD/CVD enforcement and compliance activities in FY2023, which was equal to the FY2022-enacted level. The House committee-reported bill and the Senate-introduced bill also recommended $16.4 million.

The Consolidated Appropriations Act, 2023, provided $16.4 million, within ITA's budget, for China AD/CVD enforcement and compliance activities in FY2023.

Survey of International Air Travelers (SIAT), ITA

The Survey of International Air Travelers (SIAT), a program within ITA's Industry and Analysis unit, gathers statistics about air passenger travelers in the United States. Federal agencies use these statistics for a variety of purposes, such as to estimate the contribution of international travel to the economy, develop public policy on the travel industry, and forecast staffing needs at consulates and ports of entry.³⁴

For the SIAT program in FY2023, ITA proposed $7.9 million. The proposal included the addition of one new position. With the proposed increase, ITA aimed to expand coverage of data collection to "non-traditional, non-urban markets not usually covered by the SIAT, allowing ITA to assist smaller states and destinations with market intelligence," and to collect data to inform Coronavirus Disease 2019 pandemic recovery programs for the travel and tourism industries.³⁵

The House Committee on Appropriations did not provide a specific funding level for SIAT; however, language in the committee report accompanying H.R. 8256 stated that its recommendation included "funding for the continued expansion of the Survey of International Air Travelers."³⁶

The bill introduced in the Senate did not include a specific funding level for SIAT.

The Consolidated Appropriations Act, 2023, did not include a specific funding level for SIAT.

Trade Enforcement Trust Fund (TETF), USTR

To provide additional funding for trade enforcement activities, Congress established the Trade Enforcement Trust Fund (TETF) in 2016. In Section 611 of the Trade Facilitation and Trade Enforcement Act of 2015 (P.L. 114-125), Congress directed the Secretary of the Treasury to transfer $15.0 million annually into TETF from the general fund of Treasury and outlined authorized uses of the funds.³⁷ Under Section 611(d) of this act, funds are available to USTR, "only as provided by appropriations Acts," for any of the following: (1) to monitor and enforce U.S. free trade agreements and World Trade Organization (WTO) commitments; (2) to support trade capacity-building assistance to help partner countries meet their free trade agreement obligations and commitments; and (3) to investigate petitions concerning unfair trade practices under Section 301 of the Trade Act of 1974.³⁸ The Trade Facilitation and Trade Enforcement Act of 2015 also authorizes USTR to transfer funds to select federal agencies for trade enforcement activities authorized in Section 611(d).

For FY2023, the Administration requested $15.0 million to be derived from the TETF for USTR, for trade enforcement activities authorized by the Trade Facilitation and Trade Enforcement Act of 2015. The request was equal to the FY2022-enacted level.

The House committee-reported bill and the Senate-introduced bill also recommended $15.0 million.

The Consolidated Appropriations Act, 2023, provided $15.0 million to be derived from the TETF for USTR, for trade enforcement activities.

Appendix. Budget Authority Tables