Addressing Trade Agreement Violations and Abuses
Signed: April 29, 2017
Published: May 4, 2017
Document Number: 2017-09156
đSummary
This executive order directs the Commerce Department and the U.S. Trade Representative to review how U.S. trade and investment agreements, and certain trade relationships under World Trade Organization rules, are performing and whether partners are violating rules or treating the United States unfairly. It affects federal agencies involved in trade policy and, indirectly, U.S. workers, manufacturers, farmers, ranchers, and businesses whose industries may be impacted by trade enforcement or changes in agreements. Within 180 days, the agencies must report to the President on specific violations or âabuses,â unfair practices, and cases where agreements did not deliver expected benefits like jobs, better trade balance, or market access, and recommend lawful ways to fix problems. The order also instructs agencies to take appropriate lawful actions to address identified violations or unfair treatment, and states it does not create new legal rights for private parties.
đźBusiness Impact
This order most directly affects importâdependent manufacturers, retailers/consumer goods, electronics/tech (IP-heavy), agriculture/food exporters, and any company with crossâborder supply chains or significant sales into countries where the U.S. runs large goods deficits, because it signals heightened scrutiny of existing trade terms and a greater likelihood of enforcement actions, renegotiations, or terminations that can change tariffs, market access, and sourcing economics. While it doesnât impose new compliance rules by itself, it increases the probability of trade remedies (antiâdumping/countervailing duties, safeguard actions), stricter origin/IP enforcement, and new negotiation outcomesâcreating opportunities for domestic producers and firms that can document U.S. content, protect IP, and expand U.S.-based production. Immediate actions: map your top imported inputs and export markets to specific agreements/countries, run tariff and duty âshockâ scenarios (including alternative sourcing), tighten documentation for countryâofâorigin and IP/licensing, and engage counsel/trade associations to monitor USTR/Commerce reviews and be ready to submit comments or petitions if youâre harmed by unfair trade or could benefit from enforcement.
Full Text
Executive Order 13796 of April 29, 2017
Addressing Trade Agreement Violations and Abuses
By the authority vested in me as President by the Constitution and the laws of the United States of America, it is hereby ordered as follows:
Section 1. Policy. Every trade agreement and investment agreement entered into by the United States, and all trade relations and trade preference programs of the United States, should enhance our economic growth, contribute favorably to our balance of trade, and strengthen the American manufacturing base. Many United States free trade agreements, investment agreements, and trade relations have failed, in whole or in part, to meet these criteria. The result has been large and persistent trade deficits, a lack of reciprocal treatment of American goods and investment, the offshoring of factories and jobs, the loss of American intellectual property and reduced technological innovation, downward pressure on wage and income growth, and an impaired tax base. It is the policy of the United States to negotiate new trade agreements, investment agreements, and trade relations that benefit American workers and domestic manufacturers, farmers, and ranchers; protect our intellectual property; and encourage domestic research and development. It is also the policy of the United States to renegotiate or terminate any existing trade agreement, investment agreement, or trade relation that, on net, harms the United States economy, United States businesses, United States intellectual property rights and innovation rate, or the American people.
Sec. 2. Conduct Performance Reviews. The Secretary of Commerce and the United States Trade Representative (USTR), in consultation with the Secretary of State, the Secretary of the Treasury, the Attorney General, and the Director of the Office of Trade and Manufacturing Policy, shall conduct comprehensive performance reviews of:
(a) all bilateral, plurilateral, and multilateral trade agreements and investment agreements to which the United States is a party; and
(b) all trade relations with countries governed by the rules of the World Trade Organization (WTO) with which the United States does not have free trade agreements but with which the United States runs significant trade deficits in goods.
Sec. 3. Report of Violations and Abuses. (a) Each performance review shall be submitted to the President by the Secretary of Commerce and the USTR within 180 days of the date of this order and shall identify:
(i) those violations or abuses of any United States trade agreement, investment agreement, WTO rule governing any trade relation under the WTO, or trade preference program that are harming American workers or domestic manufacturers, farmers, or ranchers; harming our intellectual property rights; reducing our rate of innovation; or impairing domestic research and development;
(ii) unfair treatment by trade and investment partners that is harming American workers or domestic manufacturers, farmers, or ranchers; harming our intellectual property rights; reducing our rate of innovation; or impairing domestic research and development;
(iii) instances where a trade agreement, investment agreement, trade relation, or trade preference program has failed with regard to such factors as predicted new jobs created, favorable effects on the trade balance, ( printed page 20820) expanded market access, lowered trade barriers, or increased United States exports; and
(iv) lawful and appropriate actions to remedy or correct deficiencies identified pursuant to subsections (a)(i) through (a)(iii) of this section.
(b) The findings of the performance reviews required by this order shall help guide United States trade policy and trade negotiations.
Sec. 4. Remedy of Trade Violations and Abuses. The Secretary of Commerce, the USTR, and other heads of executive departments and agencies, as appropriate, shall take every appropriate and lawful action to address violations of trade law, abuses of trade law, or instances of unfair treatment.
Sec. 5. General Provisions. (a) Nothing in this order shall be construed to impair or otherwise affect:
(i) the authority granted by law to an executive department or agency, or the head thereof; or
(ii) the functions of the Director of the Office of Management and Budget relating to budgetary, administrative, or legislative proposals.
(b) This order shall be implemented consistent with applicable law and subject to the availability of appropriations.
(c) This order is not intended to, and does not, create any right or benefit, substantive or procedural, enforceable at law or in equity by any party against the United States, its departments, agencies, or entities, its officers, employees, or agents, or any other person.
THE WHITE HOUSE,
April 29, 2017.