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This report examines the constitutional powers of Congress and the President to make foreign trade agreements, the respective roles the legislative and executive branches have played in recent trade agreements, and legal debates concerning the extent to which the executive branch may enter into trade agreements without congressional approval.
The Constitution grants Congress the authority to regulate foreign commerce, impose tariffs, and collect revenue, while the President holds constitutional authority to negotiate with foreign governments. Courts have only infrequently opined on the ways in which the United States may enter into foreign trade agreements based on this separation of powers.
Nevertheless, it is broadly accepted that the United States may enter into trade agreements with other countries via "congressional-executive agreements," which are negotiated by the President and approved"either in advance or afterward"by Congress.
By contrast, many have questioned whether the President may enter into trade agreements with other countries via "sole executive agreements," which are not approved by Congress and rest on the President's independent constitutional powers.
Presidents have, however, made various nonbinding trade commitments to other countries without congressional authorization based on their asserted authority to conduct foreign policy. ...