Bill Summary
The Foreign Trade Modernization Act of 2020 is a bill that was introduced in the United States Congress with the goal of abolishing the United States and Foreign Commercial Service, which is a government agency responsible for promoting and facilitating international trade and business. The bill also aims to transfer the functions and responsibilities of this agency to the Secretary of State and other relevant departments. This act also includes provisions for the transfer of property, personnel, and funds from the Commercial Service to the State Department. It also includes measures to ensure the continuation of certain services and activities related to promoting exports and protecting American business interests abroad. Overall, the act seeks to streamline and modernize the government's approach to international trade and business.
Possible Impacts
1. Small and medium-sized business owners may face difficulties in establishing export businesses without the assistance and resources previously provided by the United States and Foreign Commercial Service.
2. Government employees who were previously officers or employees of the United States and Foreign Commercial Service may need to adjust to their new roles in the Foreign Service of the United States.
3. The abolishment of the United States and Foreign Commercial Service may lead to a decrease in coordination and effectiveness of efforts to promote United States business interests in foreign countries, potentially impacting the success of American businesses in international markets.
[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7549 Introduced in House (IH)]
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116th CONGRESS
2d Session
H. R. 7549
To abolish the United States and Foreign Commercial Service, and for
other purposes.
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IN THE HOUSE OF REPRESENTATIVES
July 9, 2020
Mr. McCaul (for himself and Mr. Cuellar) introduced the following bill;
which was referred to the Committee on Foreign Affairs
_______________________________________________________________________
A BILL
To abolish the United States and Foreign Commercial Service, and for
other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Foreign Trade Modernization Act of
2020''.
SEC. 2. ABOLISHMENT OF UNITED STATES AND FOREIGN COMMERCIAL SERVICE.
(a) In General.--The United States and Foreign Commercial Service
is abolished.
(b) Transfer of Functions.--There are transferred to the Secretary
of State all functions that, on the day before the date of the
enactment of this Act, were authorized to be performed by the United
States and Foreign Commercial Service under any statute, reorganization
plan, Executive order, or other provision of law.
SEC. 3. TRANSFER AND ALLOCATION OF PROPERTY AND APPROPRIATIONS.
The Secretary of Commerce shall transfer to the Secretary of State
all contracts, property, records, and unexpended balance of
appropriations, authorizations, allocations, and other funds employed,
held, used, arising from, available to, or to be made available in
connection with the functions of the United States and Foreign
Commercial Service transferred under section 2(b), as may be necessary
to carry out this Act.
SEC. 4. TRANSFER OF PERSONNEL.
(a) In General.--Not later than 180 days after the date of the
enactment of this Act--
(1) the Secretary of Commerce shall transfer to the
Department of State those individuals who on the day before the
date of the enactment of this Act, were officers or employees
of the United States and Foreign Commercial Service; and
(2) the Secretary of State shall, in accordance with
subsections (b) and (c), receive those individuals into the
Foreign Service of the United States and convert them, if need
be, to the appropriate class in the Foreign Service Schedule
established under the Foreign Service Act of 1980.
(b) New Positions.--
(1) In general.--Those individuals transferred to the
Department of State under subsection (a) shall be deemed
economic officers of the Foreign Service and shall not be
subject to any exam or training under the Foreign Service Act
of 1980 as a condition of assuming such position.
(2) Conforming amendment regarding title change of certain
officers of the foreign service.--Subsection (d) of section 708
of the Foreign Service Act of 1980 (22 U.S.C. 4028) is amended
by striking ``and commercial'' before ``officers''.
(3) Savings provision regarding certain officers of the
foreign service subject to title change.--Any individual in the
Foreign Service who as of the day before the date of the
enactment of this Act is a commercial officer shall be known
and referred to as an economic officer on and after such date,
and shall otherwise--
(A) maintain his or her grade, rank, and class in
the Foreign Service Schedule with the same tenure held
immediately preceding such title change; and
(B) maintain his or her same rate of basic pay or
basic salary rate immediately preceding such title
change.
(c) Savings Provision Regarding Certain Officers or Employees of
the United States Ad Foreign Commercial Service.--Any individual
transferred to the Department of State under subsection (a) shall--
(1) maintain his or her grade, rank, and class in the
Foreign Service Schedule with the same tenure held immediately
preceding transfer;
(2) maintain his or her same rate of basic pay or basic
salary rate immediately preceding transfer; and
(3) be made subject to Foreign Service Act of 1980 and any
other law, rule, regulation, administrative action, and
Executive order governing the Foreign Service of the United
States.
SEC. 5. INCIDENTAL DISPOSITIONS.
The Director of the Office of Management and Budget, if requested
by the Secretary of State, shall make such incidental dispositions of
personnel, assets, liabilities, grants, contracts, property, records,
and unexpended balances of appropriations, authorizations, allocations,
and other funds held, used, arising from, available to, or to be made
available in connection with the functions of the United States and
Foreign Commercial Service transferred under section 2(b), as may be
necessary to carry out this Act.
SEC. 6. SAVINGS PROVISION.
All orders, determinations, rules, regulations, permits,
agreements, registrations, privileges, and other administrative
actions--
(1) that have been issued, made, granted, or allowed to
become effective by the President, any Federal agency or
official thereof, or by a court of competent jurisdiction, in
the performance of functions exercised by the United States and
Foreign Commercial Service on the day before the date of the
enactment of this Act; and
(2) that are in effect or were final as of the date of the
enactment of this Act, or are to become effective on or after
the date of the enactment of this Act,
shall continue in effect according to their terms until modified,
terminated, superseded, set aside, or revoked in accordance with law by
the President, the Secretary of State, or other authorized official, a
court of competent jurisdiction, or by operation of law.
SEC. 7. ACTIVITIES TO PROMOTE EXPORTS OF GOODS AND SERVICES FROM THE
UNITED STATES.
The Championing American Business through Diplomacy Act of 2019
(enacted as title VII of subtitle H of title I of division J of the
Further Consolidated Appropriations Act, 2020 (Public Law 116-94; 22
U.S.C. 9901 et seq.)) is amended by adding at the end the following:
``SEC. 712. ACTIVITIES TO PROMOTE EXPORTS OF GOODS AND SERVICES FROM
THE UNITED STATES.
``(a) In General.--The Secretary of State, acting through the
Assistant Secretary for Economic and Business Matters and the relevant
chiefs of mission, shall place primary emphasis on the promotion of
exports of goods and services from the United States, particularly by
small and medium-sized businesses, and on the protection of United
States business interests abroad by carrying out activities such as the
following:
``(1) Identifying United States businesses with the
potential to export goods and services and providing such
businesses with advice and information on establishing export
businesses.
``(2) Providing United States exporters with information
and advice on the necessary adaptation of product design and
marketing strategy to meet the differing cultural and technical
requirements of foreign countries.
``(3) Providing United States exporters with actual leads
and an introduction to contacts within foreign countries.
``(4) Assisting United States exporters in locating
reliable sources of business services in foreign countries and
in their dealings with foreign governments and enterprises
owned by foreign governments.
``(5) Assisting the coordination of the efforts of State
and local agencies and private organizations that seek to
promote United States business interests in foreign countries
so as to maximize the effectiveness and minimize the
duplication of efforts of such agencies and organizations.
``(6) Utilizing district offices established under
subsection (b) as one-stop shops for United States exporters
by--
``(A) providing exporters with information on all
export promotion and export finance activities of the
Federal Government;
``(B) assisting exporters in identifying which
Federal programs may be of greatest assistance; and
``(C) assisting exporters in making contact with
such identified Federal programs.
``(7) Providing United States exporters and export finance
institutions with information on all financing and insurance
programs of the Export-Import Bank of the United States, the
United States International Development Finance Corporation,
the Trade and Development Program, and the Small Business
Administration, including providing assistance in completing
applications for such programs and working with exporters and
export finance institutions to address any deficiencies in such
applications that have been submitted.
``(b) District Offices.--The Secretary of State shall establish, or
maintain if transferred to the Secretary under the Foreign Trade
Modernization Act of 2020, district offices of the Foreign Service in
any United States city in a region in which the Secretary, in
consultation with the Secretary of Commerce, determines that there is a
need for Federal Government export assistance.''.
SEC. 8. CONFORMING AMENDMENTS.
(a) Omnibus Trade and Competitiveness Act of 1988.--
(1) In general.--The following provisions of the Omnibus
Trade and Competitiveness Act of 1988 are repealed:
(A) Section 2301 (15 U.S.C. 4721).
(B) Subsection (c) of section 2303 (15 U.S.C.
4723).
(C) Section 2306 (15 U.S.C. 4725).
(2) Conforming amendment.--Section 2303 of such Act (15
U.S.C. 4723) is amended by redesignating subsection (d) as
subsection (c).
(b) Title 5, United States Code.--Section 5315 of title 5, United
States Code, is amended by striking ``Assistant Secretary of Commerce
and Director General of the United States and Foreign Commercial
Service.''.
(c) Trade Facilitation and Trade Enforcement Act of 2015.--Section
505(c)(1) of the Trade Facilitation and Trade Enforcement Act of 2015
(15 U.S.C. 4721a(c)(1)) is amended by striking ``acting through the
head of the United States Foreign and Commercial Service'' and
inserting ``in consultation with the Assistant Secretary of State for
Economic and Business Affairs''.
(d) Foreign Service Act of 1980.--The Foreign Service Act of 1980
is amended--
(1) in section 202(a) (22 U.S.C 3922(a))--
(A) by striking paragraph (3);
(B) by redesignating paragraph (4) as paragraph
(3); and
(C) by moving the margins of paragraph (3) (as so
redesignated) two ems to the left; and
(2) in section 305(c) (22 U.S.C. 3945(c))--
(A) by striking ``(1) Appointments to the Senior
Foreign Service by the Secretary of Commerce shall be
excluded'' and inserting ``Appointments to the Senior
Foreign Service by the Secretary of Commerce made on or
before the date of the enactment of the Foreign Trade
Modernization Act of 2020 shall be excluded''; and
(B) by striking paragraphs (2) and (3).
(e) References.--Any reference in any statute, reorganization plan,
Executive order, regulation, agreement, determination, or other
official document or proceeding to--
(1) the Assistant Secretary of Commerce and Director
General of the Commercial Service shall be deemed to refer to
the Secretary of State; and
(2) the United States and Foreign Commercial Service shall
be deemed to refer to the Department of State.
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