Exam 8: National Lawmaking Powers and the Regulation of U.S.Trade

The Trade Act of 1974 and Omnibus Act give the president broad powers to deal with a range of complex international economic problems and to negotiate the reduction of non-tariff barriers.

The power of Congress "to regulate commerce with foreign nations and among the several states" is found in:

Under the Trade Promotion Authority,the President can use "fast track" procedures to negotiate trade agreements with nations and advise Congress if any proposed terms under negotiation are not in accordance with prior trade laws.

There is very little debate over how the U.S.Constitution divides power over foreign affairs and foreign trade between the Congress and the president.

Under the Supremacy Clause of the Constitution,where a law of the federal government directly conflicts with a state law,the federal law will prevail.

Congress has delegated to the president the authority to carry out the trade policies that it has set by statute.

Xerox Corp.manufactured parts for copy machines in the U.S.that were shipped to Mexico for assembly.The copiers were designed to be sold to Latin America and did not operate on U.S.electric current.The copiers after assembly were kept in U.S.customs warehouses pending sale to Latin America.These goods were free of import duty by federal law.The city of Houston,Texas,assessed these copiers with a local property tax.Xerox sued to have this tax declared unconstitutional.The court decided: I.That Xerox must pay all this tax because state/local governments have taxing powers just like the U.S. II.That Xerox must pay only one-half since state/local governments are one-half partners with the federal government. III.That this law is preempted by federal law.

The Import-Export Clause gives power to the federal government and state governments to tax exports and imports.

In Dole v.Carter,the court considered Senator Robert Dole's complaint that the president be enjoined from returning the Hungarian coronation regalia to Hungary.The court:

The negative implication doctrine means that state governments may not enact laws that impose a substantial burden on foreign commerce.

During the 1940s,the U.S.instituted a price support system for American potatoes.Congress had addressed the problems of agricultural imports in the Agricultural Act of 1948.The U.S.Secretary of State entered into an executive agreement with Canada that would permit only seed potatoes to be imported into the U.S.This agreement was not submitted to or approved by congress.A potato importer imported potatoes into the U.S.for A & P grocery stores for resale.When the court tried this case brought by the U.S.against the importer:

In order for an executive agreement of the president concerning foreign affairs to be valid: I.A court must find that it is based on the president's inherent powers or authority granted by congress. II.It must be based upon an express power granted by the U.S.Constitution.

A state's authority to tax a business engaged in foreign commerce is determined by:

The Omnibus Act provides a fast-track procedure for approving trade agreements whereby the president can declare the agreement to be law.

Caspiana is a small state located in Central Asia.Caspiana has been a staunch U.S.ally for many years and is an important source of many precious metals utilized by the defense industry in the production of advanced weaponry.U.S.defense contractors and the U.S.government have been Caspiana's primary customers for these precious metals,many of which are found nowhere else in the world.Additionally,Caspiana's territory has served as a base for U.S.antiterrorism efforts in Central Asia. Caspiana shares a border with Arala.Arala is a much larger state ruled by a military dictatorship and possessing a large military.However,Arala lacks the mineral wealth possessed by Caspiana.In recent years,Arala military forces have crossed the border,seized stockpiles of precious metals and returned to Arala.Last week,Aralan forces crossed the border with Caspiana and seized a portion of Caspiana's territory containing numerous precious metal mines.Arala subsequently declared the seized territory to be part of Arala. In response to this crisis,the president of the United States immediately negotiated an agreement with the government of Caspiana providing that U.S.forces would terminate Arala's occupation through military force and would establish a permanent base in the country.The president signed this agreement without prior consultation with or the receipt of authorization from the U.S.Congress.The president claimed that such consultation and approval were not necessary. What type of agreement has the president negotiated with Caspiana? What do such agreements provide? Utilizing the opinion in Dole v.Carter,would a judicial challenge to the agreement by a member of Congress be successful? Why or why not? What statute could the president utilize to respond to the crisis in Caspiana? When may this statute be utilized? What actions may the president take utilizing this statute?

Recalling the issue in Japan Line,Ltd.v.County of Los Angeles,write an international agreement on the taxation of cargo containers.

The power of a president to issue Executive Orders do not include:

The Bureau of Customs and Border Protection is administered by the:

State governments may restrict imports in order to deal with public health,safety concerns and sanction for violation of international law.

Compare and contrast the powers of Congress and the president with regard to the regulation of trade (for example,customs and imports).