Legal Definitions - International trade

International trade refers to the exchange of goods and services between different countries. It is governed by constitutional, federal, and international laws that regulate trade between the United States and foreign nations.

The Commerce Clause of the U.S. Constitution gives Congress the power to regulate commerce with foreign nations. Federal and international laws address a wide range of trade issues, such as customs duties, dumping, embargoes, free trade zones, intellectual property, quotas, and subsidies.

Congress has enacted numerous federal statutes, including the Tariff Act of 1930, the Trade Act of 1974, and the Trade Agreements Act of 1979. The President also has the power to negotiate international treaties and trade agreements, such as the Marrakesh Agreement Establishing the World Trade Organization and the North American Free Trade Agreement.

The International Trade Administration (ITA) is a bureau of the U.S. Department of Commerce that aims to strengthen the competitiveness of U.S. industry, promote trade and investment, and ensure fair trade through rigorous enforcement of U.S. trade laws and agreements. The ITA is comprised of four distinct business units: U.S. and Foreign Commercial Service, Manufacturing and Services, Market Access and Compliance, and Import Administration.

The United States is a member of the World Trade Organization (WTO), an international organization that provides a forum and a legal and institutional framework for its members to negotiate, implement, monitor, and resolve disputes relating to international trade agreements. As of 2021, the WTO has 164 members and 24 observer countries.

Examples of international trade include the import and export of goods such as cars, electronics, and clothing. International trade also includes the exchange of services such as consulting, tourism, and transportation. These examples illustrate how countries rely on each other for goods and services that they may not produce or provide themselves.