Chapter 8: Law 4220
tariff concession
an agreement to reduce a tariff to a specified level
trade agreement
an international agreed between nations on matters related to trade and tariffs.(can be bilateral or multilateral)
non-tariff barrier
any barrier to trade other than tariffs intended to prohibit or discourage imports, including quotas on imported products, special licenses for import, and hidden "red tape"in the customs laws.
Unconditional MFN trade
any new lower tariff that applies to an item imported from MFN trading partner automatically applies to the same or like items imported from all the nations that are in MFN status with the importing country, without any concession being required from the nations in return. example: THIS APPLIES TO ALL COUNTRIES THAT IMPORT BANANAS. not a country by country basis.
Congressional executive agreements
between the president, representing the US, and a foreign country, negotiated and concluded by the president and voted into law by a simple majority vote of BOTH the Senate and the House.
equal dignity rule
both statues and treaties are of equal importance. In the event of a conflict between a treaty and statute, the last in time prevails.
United states trade representative
carries out all bilateral and multilateral trade negotiations on behalf of the US
The power to regulate international commerce is in the hands of whom?
federal government
U.S commercial service
maintains a network of offices at home and abroad to assist U.S firms in developing export opportunities
are treaties binding?
on both federal and state governments with the same force as act of Congress
Treaty power
refers the authority of the US to enter treaties pursuant to Article II of the constitution.
Article 1 of the Constitution confers "all legislative powers" on Congress, including what?
the power to regulate commerce with foreign nations, and among several states
reciprocal trade
under RTA, allowed the president to negotiate tariff reduction on a product-by-product basis with other countries.
What prompted such a provision of the import-export clause
1. federal government needed to be able to "speak with one voice" on matters related to foreign affairs 2. Import duties provided an important source of revenue for the federal government 3. Seaboard states were prevented from imposing burdensome regulations and taxes on "in transit" goods that were destined for inland states.
The president's power over foreign affairs are:
1. inherent power (including the power to conduct foreign affairs, appoint ambassadors, receive foreign ambassadors, and to act as the commander-in-chief of the armed forces 2. Treaty power 3. powers delegated by Congress in a statute.
Youngstown Sheet and Tube V. Sawyer (great example of President Truman relying on his inherent power as the chief executive and commander in chief of the armed forced)
F: In the early 1950s, the US was at war in Korea as part of the UN "police action." American steelworker were threatening to strike over wages and collective bargaining disagreement with steel companies. A strike would have disrupted the spuppy of steel leading to a possible shortage of steel during the war effort and an increase in prices in all products made of steel. Just before the steelworkers were to go on strike president Truman ordered Secretary of Commerce Charles Sawyer to seize the steel mills and keep them in operation. Truman based his authority for doing so on Article II of the Constitution and on his power as commander in chief of the armed forces. PH: DC granted the request of the steel companies for a temporary injunction agains the president's order, the CA agreed, and the secretary of commerce appealed to the SC. Issue: Can the president in his authority under inherent power, stop the strike Held: the SC held the lower court's injunction against the President's action was upheld. Analysis: the President was not acting pursuant to act of Congress, nor could the seizure of private property during wartime be justified on the basis of inherent power as President or as Commander in Chief.
Star-Kist Foods Inc. V. US:
F: SKF, producer of canned tuna, instituted a lawsuit to protest the assessment of duties made by the collector of customer on imported canned tuna. Duty was assessed on the canned tuna at the rate of 12.5% pursuant to a trade agreement with Iceland. prior to the agreement, the tariff rate had been set by Congress in the Tariff Act of 1930 at 25% ad valorem (value). The trade agreement with Iceland, which resulted in lowering the rate of duty, was executed pursuant to the reciprocal trade agreement act of 1934. To implement an agreement, the president was then authorized to raise or lower any duty previously set by Congress, but not by more than 50%. Issue: Star-Kist brought this action, contending that the delegation of authority under the 1934 act, and the unconstitutional agreement of this. Held: held of rate US. CA: the congressional delegation of authority under the 1934 statue was constitutional because congress had provided the president with a sufficiently discernible standard to guild any decisions in carrying out the purposes of the act.
Japan Line v. LA
F: The state of CA imposed an ad valorem property tax on cargo containers owned by Japanese companies and temporarily located in CA. The containers were used exclusively for transporting goods in international commerce. They were baed, registered, and subjected to property taxes in Japan. the containers spent, on average, only 3 weeks a year in CA. Japan lines contended that the tax was invalid because it subjected the containers to multiple taxation PH: California SC upheld the statutes and the ship owners appealed. Issue: too much taxation, more specifically the commerce clause Held: the SC reversed, holding that the tax was unconstitutional. CA: the court ruled that an ad valorem property tax applied to Commerce Clause because it resulted in multiple taxation of instrumentalities of foreign commerce.
U.S court of International Trade
Exclusive jurisdiction over all civil actions against U.S., involving revenue from imports, tariffs, embargoes or quantitative restriction (except for health and safety) and enforcement of customs laws
Arizona v. US
F: during a time of political controversy in the US over immigration policy and enforcement, Arizona enacted a state to deal with the large number of immigrants coming into their state. Section 3 made it a misdemeanor under Arizona law for any person to violate federal alien registration laws. Section 5 made its misdemeanor for an unauthorized alien to seek or engage in work in the state. Section 6 authorize state and local officers to arrest without a warrant any person they believe could lawfully be removed from the US. Section 2 required state and local official to contact federal official for the purpose of varying the immigration status of nay person PH: The us brought this action constitutionally challenging the federal district court of Arizona statue. A court enjoined enforcement of the statue, and Arizona appealed. The SC granted certiorari. Issue: does a state have jurisdiction of immigration Held: Affirmed in part and reversed in part. Those section (3,5,6) are preempted by federal law and are invalid. Section 2 which encourages consolation between state and federal immigration law is valid.
Dole v. Carter
F: this action was brought by a U.S senator against the president to enjoin him returning the Hungarian coronation regalia to Hungary. The US has this because of WWII, and it was entrusted to the US for safekeeping. Many Hungarians living in the US were opposed to the return of the crown. PH: DC agreed with Carter, specifically because of part 3 that executive agreements executed pursuant to the president's own constitutional authority Issue: the plaintiff, Dole, on the ground that such action was tantamount to a treaty undertaken by the president without the prior advice and consent of the Senate Held: what the DC said, because we would give nothing done as a country if everything and to be ratified by the senate. CA: the plaintiff's motion for a preliminary injunction was denied. The agreement to return the coronation regalia was found to be not a treaty requiring ratification by the Senate, but valid executive agreement based not the president inherent power.
Michelin Tir Corp v. Wage in relation to Import-export clause
U.S SC addressed the issue of states power to tax imports. Michelin Tire Corporation imported tires manufactured form France and Nova Scotia by Michelin. the company maintained distribution warehouse in GA. The state address an ad valorem property tax against the tires that were held in inventory. The SC ruled that the tax was permitted under import-export clause was imposed on all products for supporting the cost of public services, the tax was nondiscriminatory, and it did not interfere with the federal government's regulation of international commerce.
conditional Most-Favored Nation Trade
any trading advantage (such as a reduced tariff rate) applied to an item imported into a country will also be applied to the same or like items coming for any other country that has MFN status with the importing country, provided the country reciprocates and lowers its tariff rates in an equivalent amount in return.
International emergencies
are generally unexpected international events that threaten American national security.
Border and Transportation Security Directorate
brings together the major border security and transportation security functions of Homeland Security.
International Emergency Economic Powers Act
enables the president to block financial transactions or restrict the flow of trade with foreign countries, or seize the assets of the governments, individuals, or organizations responsible.
Omnibus Trade and Competitiveness Act of 1988
extend the president's authority to negotiate trade agreements, which led to the NAFTA, Central Free Trade Agreement, and the Agreement Establishing World Trade Organization
U.S department of commerce
has broad authority over many international trade issues. The department's functions include fostering trade and promoting exports of U.S goods and services, investigation and resolving companies by U.S firms that foreign governments are fairly blocking access to foreign markets, administering U.S unfair import laws, issuing export licenses for certain products.
International Trade Administration
housed with the department, performs many of the trade promotion, market access, and import administration functions.
trade preference
is a law that grants favorable trade and tariff treatment to product coming from developing countries, and is intended to aid in their economic development.
sole executive agreement
is one negotiated and put into legal effect the basis of the inherent authority of the president, and does not require congressional approval
benefit of MFN trade
it helps lower global tariff rates much faster than would otherwise occur, and it is fairer.
what did the reciprocal trade agreement act of 1934 do?
it not only provided the president with a mechanic for lowering the Smoot-Halwy tariff rates, but for encouraging other countries to lower their rates on our products in return.
The Senate has the authority to give advice and consent to the president in what?
making treaties with foreign nations and to approve treaties by 2/3 vote
multiple taxation
occurs when the same service or property is subjected to the same or similar tax by the governmental authorities of more than on nation.
Import-Export Clause
prohibits the federal government from taking exports and prohibits the states from taxing either imports or exports.
free trade agreement
refers to a trade agreement with broader coverage that establishes a "free trade area" in which specific tariff and customs provisions govern the flow of trade between participating countries.
U.S bureau of Industry and Security
regulates the export of sensitive goods and technologies for national security and foreign policy and administers U.S export control laws.
Trade Reform Act of 1974:
set up a "fast-track" process for approving trade agreements, know as the president's trade promotion authority.
Smoot-Hawley Tariff Act of 1930
signed by Hoover, the US congress imposed the highest tariff levels in the nation's history. Because nation's retaliated against one another, and began imposing large tariffs, could be one of the starts of the GD.
Article 2 of the constitution confers power on the president, the president has the power alone to do what?
speak or listen as a representative of the nation
state restriction on imports
state government restrictions on imports are severely limited. User fees for the use of port facilities are generally permitted. Also, state may impose restriction directly related to the protection of the public health and safety.
negative implication doctrine
state governments may not enact laws that impose a substantial burden on foreign commerce.
States restrictions on exports
the commerce clause prohibits state governments from restricting, taxing, or otherwise imposing undue burdens on exports.
who negotiates treaties
the executive branch with advice and consent of the Senate and approved by 2/3 of the senate.
Commerce Clause
the federal government with exclusive control over commerce.
Trade expansion act of 1962
the president to negotiate across-the-board tariff reductions instead of using the tedious product-by-product system set up in 1934.
Congressional agreements are what?
they are not outlined but eh Constitution, they are compromises between the president and Congress.
Bureau of Customs and Border Protection
this agency brings together many functions of the former U.S customs service, the border patrol, and the immigration and naturalization service. Its function includes preventing suspected terrorists from entering the US; apprehending individuals attempting toe enter the US illegally, stemming the flow of drugs and other contraband, protecting American ag. and economic interest for pests and disease.
Because of the Smoot-Hawley Tariff Act president Roosevelt created the Reciprocal Trade agreement act of 1934
this provided the president with the authority to lower tariffs. Created a partnership between the executive and congressional branches of government in setting tariff and trade policy.
Inherent powers of the president
those that are either expressly granted to the president in the Constitution or found to be there by judicial interpretation.
why are sole executive agreements used?
to execute and carry out existing laws, or to enter into agreements with foreign countries that do not create broad new national policies.
Supremacy Clause
when a law or regulation of the federal government directly conflict with those of the state (or local) government, the federal law will generally prevail when Congress expresses the intention that the federal law shall prevail or when the intention may be inferred from the legislation or form the circumstances