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White House FY 2016 Budget Proposal Sees Increases for Trade Agencies

Thursday, February 12, 2015
Sandler, Travis & Rosenberg Trade Report

President Obama’s fiscal year 2016 budget proposal includes the following funding amounts and other provisions for trade-related agencies and initiatives.

Agencies

- $497 million (an 8 percent increase) for the International Trade Administration, including $15 million to accelerate the operations of the Interagency Trade Enforcement Center, $20 million for the SelectUSA program that recruits foreign businesses to invest in the U.S., and $16.4 million for China antidumping and countervailing duty enforcement and compliance activities

- $115.1 million (up 12 percent) for the Bureau of Industry and Security, including $58 million for export administration and $51 million for export enforcement

- $9.05 billion for U.S. Customs and Border Protection, including $153.7 million for the Automated Commercial Environment

- $56 million for the Office of the U.S. Trade Representative (up 3.2 percent)

- $5.88 billion for U.S. Immigration and Customs Enforcement, including $73.5 million for immigration and customs enforcement automated systems

- $129 million for the Consumer Product Safety Commission (up 4.9 percent)

- $27.4 million for the Federal Maritime Commission (up 6.6 percent)

- $131.5 million for the International Trade Commission (up 55.6 percent, primarily to secure space for the agency following the expiration of its current lease)

- $4.9 billion for the Food and Drug Administration (up 9 percent), including initiatives mandated by the Food Safety Modernization Act such as building and implementing a new import safety system

General

- out of $1 billion to promote prosperity, security and good governance in Central America, dedicates more than $400 million to promote trade facilitation, promote transport and customs/border integration, reduce poverty, enhance workforce development, facilitate business development and help small businesses create jobs

- continues scaling the CPSC’s import surveillance initiative to a full-scale national program and proposes that an import surveillance user fee be enacted, with collections beginning by 2017

- reintroduces a controversial proposal to consolidate USTR, the Department of Commerce’s core business and trade functions, the Export-Import Bank, the Overseas Private Investment Corporation, the U.S. Trade and Development Agency, the Small Business Administration, the Department of Agriculture’s business development programs, the Treasury Department’s Community Development Financial Institutions Fund program, the National Science Foundation’s statistical agency and industry partnership programs, and the Bureau of Labor Statistics from the Department of Labor

- extends the Generalized System of Preferences through Dec. 31, 2016, and the African Growth and Opportunity Act through Sept. 30, 2030

- proposes combining the FDA and the Food Safety Inspection Service into a single food safety agency

Transportation

- $18 billion over six years for a dedicated regional freight infrastructure investment program to support multi-modal, corridor-based projects designed to eliminate existing freight transportation bottlenecks and improve the efficiency of moving goods in support of the National Export Initiative

Taxation

- a 19 percent minimum tax on foreign income of U.S. multinationals (such earnings generally would be subject to tax either immediately when earned or, if sufficiently high foreign taxes are paid on the income, not at all)

- a 14-percent one-time tax on untaxed foreign earnings that U.S. companies have accumulated overseas, which could then be repatriated without any further U.S. tax (the revenues from this tax would be used to update domestic infrastructure)

- a new general business credit against income tax equal to 20 percent of the eligible expenses paid or incurred in connection with insourcing a U.S. trade or business and disallowing deductions for expenses paid or incurred in connection with outsourcing  a U.S. trade or business

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