Presentation on theme: "Trade Reorganization Proposal By Turki A. Al Hokail ITRN"— Presentation transcript:
1Trade Reorganization Proposal By Turki A. Al Hokail ITRN 603-002
2OverviewObama’s Proposed Trade Reorganization to address the Economic ProblemsObama 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 coordinationTo boost the US ExportsTo cut government size and spendingTo support the economy through greater employment opportunitiesThe 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).
3Legislation USC: Title 12-Banks and Banking USC: Title 15-Commerce and TradeUSC: Title 18, Chapter 27 – CustomsUSC: Title 19 - Customs DutiesUSC: Title 22- Foreign Relations and IntercourseInternational Trade Laws
4One Issue: Consolidation among the Autonomous Agencies Major ProblemsChanged power balance in the new departmentThe unique functions of these six autonomous agencies would be sufferedExpected imbalance between industry interests and foreign policyOpposition from different interest groups in the CongressTrade functions are scattered across different federal agenciesOne Issue: Consolidation among the Autonomous AgenciesConsolidation of 6 autonomous agencies would be time taking and riskyThe agencies would have to lose their independence and autonomous statusThe competing interests between the existing agencies and the government’s intent for the consolidation into one departmentContextual differences in the US and the other countries
5Policy ProposalAll of the proposed and other trade related agencies are required to be assessed on consensus based objective criteriaProposal of three-point Criteria for the inclusion or exclusion of agency from the proposed consolidationAgency’s PerformanceAgency’s Mission alignment with the National Economic PolicyEvaluation of all Functions of the AgencyThe proposal would result in an efficient trade operations, which would facilitate the domestic US businessesAn alignment of the trade functions with the US economic and foreign policies facilitate the country in maintaining competitive advantage
6Pros & Cons of proposal Pros Provides a systematic transition to a more effective and efficient trade functionsThe under-performed agency would be merged while the performing agencies would remain autonomousConsA time intensive exercise and the trade functions would be suffered during transition phaseSubjectivity of the major interest groups while deciding about the inclusion and exclusion of the agency
7ReferencesIlias, S., 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., 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.
8Strauss, R. S. , 1984. The Difficult Politics of Trade Reorganization Strauss, R. S., The Difficult Politics of Trade Reorganization. Berkeley Journal of International Law, 2(1), ppThis article provides an overview of the complexities and problems in the trade reorganizationTrade Promotion Coordinating Committee, 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, 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.