Trump Budget Request Focuses on Enforcement
The Trump administration's budget request for fiscal year 2019 keeps funding for the Commerce Department's International Trade Administration largely flat. Still, that funding "would allow ITA to conduct robust investigations into alleged trade violations, aggressively advocate for U.S. businesses facing tariff and non-tariff barriers abroad, and increase the capacity to closely review proposed foreign investments in U.S. businesses." The request, released Feb. 12, said "the President insisted on a simple, but forgotten principle -- America First," and said that trade enforcement is a high-priority, mission-critical program.
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The document notes that Commerce, in the first year of the Trump administration, initiated nearly 60 percent more antidumping and countervailing duty investigations than in 2016. Resolved trade agreement compliance cases rose by 21 percent compared to 2016, as well, "demonstrating a commitment to holding trading partners accountable for their free trade commitments. The additional resources requested in the Budget would continue to support the Administration’s aggressive approach to a global market that allows U.S. businesses to compete fairly."
However, the ITA request is $58 million below current year spending, as the administration recommends a significant cut to the Global Markets section, which promotes U.S. exports. It also recommends that ITA cut its staff by about 90 people. Overall, the administration would increase Commerce Department funding by 6 percent, with much of that for the 2020 Census preparations.
The new chairman of the House Budget Committee was cool to the proposal, citing concerns that the budget does not seek to eliminate deficits. With the tax cuts that take effect in 2018, revenues are expected to decline by $314 billion during the calendar year. "The House Budget Committee will carefully consider its recommendations as we begin writing our budget resolution,” Chairman Steve Womack said in a statement.
The Department of Homeland Security budget does suggest some increased customs user fees. It proposes an increase of $2.75 to customs user fees for passengers traveling by air and sea, and a "proportionate" rate increase to all other Consolidated Omnibus Budget Reconciliation Act customs user fees. That is projected to bring in an additional $20 million during the fiscal year. CBP’s National Targeting Center would also get a $79 million boost, meant to help stop illicit goods. The administration also requested $44 million for new Non-Intrusive Inspection technology at ports of entry, "which is used to examine cargo and conveyances for contraband and weapons of mass effect." An increase of $42 million, "funded by both fees and discretionary appropriations," was requested "to enable CBP to screen inbound packages at express consignment carrier facilities such as FedEx, UPS, and DHL."
The administration also proposes a new fee to cover the full costs of the Animal and Plant Health Inspection Service inspections of passengers and cargo coming to the U.S. mainland from Hawaii and Puerto Rico. That fee would bring in $29 million in FY19.