White House Curbs Regulatory Authority of Some Trade Agencies

Several trade-related federal agencies will see new curbs on their ability to issue regulations under an executive order issued Feb. 18.

The EO asserts that “so called ‘independent regulatory agencies’ … currently exercise substantial executive authority without sufficient accountability to the president” and “have been permitted to promulgate significant regulations without review by the president.”

To “ensure presidential supervision and control of the entire executive branch,” the EO directs all executive departments and agencies, including independent agencies, to submit all proposed and final significant regulatory actions to the Office of Information and Regulatory Affairs for review before publication in the Federal Register. This requirement will take effect April 21 or when the Office of Management and Budget has completed guidance to the heads of executive departments and agencies newly submitting regulatory actions, whichever is earlier.

The EO also (1) requires independent regulatory agencies to regularly consult with and coordinate policies and priorities with the White House, (2) directs the OMB to establish and review performance standards and management objectives for such agencies, (3) empowers the OMB to adjust such agencies’ “apportionments” (i.e., spending) for consistency with the president’s policies and priorities, and (4) prohibits such agencies from adopting interpretations of the law – including through the issuance of regulations and guidance – that conflict with those of the president or the attorney general.

This EO will impact several agencies whose areas of regulation affect international trade, including the Consumer Product Safety Commission (which sets standards with which imported and domestic goods must comply), the Federal Maritime Commission (which ensures fair shipping practices), and the Federal Trade Commission (which among other things regulates “Made in USA” labeling).