More on the New Trade Enforcement Unit
Update on the New Trade Enforcement Unit
A couple weeks ago, I wrote a post about President Obama’s proposed trade enforcement unit. There are some updates to make.
The trade enforcement unit has an official name now. The official title will be the Interagency Trade Enforcement Center (ITEC).
Yesterday the President released his budget that would devote $23 million for this new agency. As outlined in the President’s State of the Union address, the Interagency Trade Enforcement Center will enhance the administration’s capabilities to aggressively challenge unfair trade practices around the world.
"Tonight, I’m announcing the creation of a Trade Enforcement Unit that will be charged with investigating unfair trading practices in countries like China. There will be more inspections to prevent counterfeit or unsafe goods from crossing our borders. And this Congress should make sure that no foreign company has an advantage over American manufacturing when it comes to accessing financing or new markets like Russia. Our workers are the most productive on Earth, and if the playing field is level, I promise you -– America will always win."
Funding will come from the Commerce Department. More specifically, funds would come from the International Trade Administration and the office of the US Trade Representative.
Industry Skepticism
Opinions are mixed about this new agency in the trade community. The discussions in several of the Linkedin groups that I post to ranged from indifference to skepticism. Increasing enforcement of fair-trade laws sounds like a good idea, but are there are questions about whether there are ulterior motives behind this new agency.
Obama’s goal to double exports by 2015 may be to aggressively pursue enforcement. Increased enforcement may result in more foreign companies investing in the US operations.
What are your thoughts on the Interagency Trade Enforcement Center? Post your comments below. Also, don’t forget to follow out company on Linkedin.