Business Law environment essay
CHAPTER 8 National Lawmaking Powers and the Regulation of U.S. Trade
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© 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
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The Separation of Powers
Drafters of U.S. Constitution places power to regulate international commerce in hands of federal government.
The Executive-Legislative Debate.
Legislative Power.
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The Separation of Powers
Presidential or Executive Power.
Separation of powers and checks and balances leaves the President having to work with Congress.
What if they aren’t cooperating?
Consequences?
What is the alternative?
Role of business in this process?
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The Separation of Powers
Presidential or Executive Power (cont’d).
Power to Negotiate Treaties.
Power to appoint ambassadors.
Is the Commander in Chief.
Inherent Presidential Power and Its Limitations.
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The Separation of Powers
Presidential or Executive Power (cont’d).
Inherent Presidential Power and Its Limitations.
See the Youngstown Sheet & Tube v. Sawyer case (1952). President’s seizure of private property during wartime was not justified based on Presidential powers.
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The Treaty Power
Domestic Law Effect of U.S. Treaties.
Treaties are self-executing, non-self-executing, or executory.
Equal Dignity Rule.
An act of Congress can override an inconsistent prior treaty.
A treaty will override an inconsistent prior act of Congress.
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The Treaty Power
Domestic Law Effect of U.S. Treaties.
Equal Dignity Rule (cont’d).
Statutes and treaties are of equal dignity.
Example of Treaties under U.S. Law: FCN Treaties (Friendship, Commerce and Navigation).
See the Macnamara v. Korean Air Lines case (1988). Was KAL’s discriminatory treatment intentional?
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Executive Agreements
Sole Executive Agreements and President’s Inherent Power.
International agreements between the President and a foreign country, entered into without resort to the treaty process.
Binding, and have the effect of law.
Two types: sole executive agreements and congressional-executive agreements.
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Executive Agreements
Sole Executive Agreements and President’s Inherent Power (cont’d).
See the Dole v. Carter case (1977). President did not exceed his powers. This was not a treaty but an executive agreement made pursuant to the President’s constitutionally inherent executive authority.
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U.S. Trade and Tariff Legislation
Smoot-Hawley Tariff Act of 1930.
Raised tariffs so high, there was international retaliation. Some say it exacerbated the Great Depression.
The Reciprocal Trade Agreements Act of 1934.
Introduced Most Favored Nation status (now known as Normal Trade Relations).
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U.S. Trade and Tariff Legislation
The Reciprocal Trade Agreements Act of 1934 (cont’d).
See the Star-Kist Foods, Inc. v. United States case. Congressional delegation to President was constitutional, and guided decisions based on purpose of the act
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U.S. Trade and Tariff Legislation
More Recent U.S. Trade Legislation.
Trade Expansion Act of 1962: created office of the U.S. Trade Representative.
Trade Reform Act of 1974: gave more power to the President.
Trade Agreements of 1979.
Trade and Tariff Act of 1984.
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U.S. Trade and Tariff Legislation
More Recent U.S. Trade Legislation.
Omnibus Trade and Competitiveness Act of 1988 (NAFTA).
Caribbean Basin Economic Recovery Act of 1983,
The Andean Trade Program and Drug Eradication Act of 2002, and
The African Growth & Opportunity Act of 2000.
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Trade Agreements
General Agreement on Tariffs and Trade (GATT) (1974 and 1994).
Presidential Authority for GATT Multilateral Trade Negotiations.
Trade Promotion Authority.
Trade Negotiation Objectives.
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Trade Agreements
Trade Promotion Authority.
Expanded Powers.
Trading with the Enemy Act.
International Emergency Economic Powers Act (IEEPA) 1977- basis of economic sanctions.
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Federal-State Relations
The Supremacy Clause (federal preemption).
Burma, Human Rights, and Federal Preemption.
Economic Sanctions Against Burma.
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Federal-State Relations
The Import-Export clause.
The Commerce clause.
Commerce Clause and Multiple Taxation. See the Japan Line, Ltd. v. County of Los Angeles (1979) case. Ad valorem property tax on containers used exclusively in foreign commerce violates the Commerce Clause.
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Federal-State Relations
The Commerce Clause (cont’d).
State Income Taxation of Multinational Corporations.
State Restrictions on Exports.
State Restrictions on Imports.
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U.S. Department of Commerce.
Includes control of exports as well as International Trade Administration or ITA, Bureau of Industry and Security.
U.S. Department of Homeland Security.
Border and Transportation Security.
Impact of Homeland Security on American Importers and Exporters.
Federal Agencies Affecting Trade
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United States Trade Representative.
Carries out all bilateral and multilateral trade negotiations on behalf of U.S.
International Trade Commission.
Investigates unfair trade practices.
Federal Agencies Affecting Trade
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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.
Federal Agencies Affecting Trade
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Conclusion
President has limited powers.
But President has broad powers during time of war.
Presidents rely on delegations of power from Congress.
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