Government Reorganization: Observations About Creating a U.S. Trade Administration

GAO discussed proposed legislation to create a U.S. Trade Administration (USTA) by merging the Office of the U.S. Trade Representative (USTR) with several Department of Commerce offices and the U.S. Trade and Development Agency. GAO noted that: (1) creating a trade administration that lacks cabinet-level department status could lead to the perception that the new agency does not have the status of either USTR or the Department of Commerce; (2) the proposed legislation would combine the trade functions of only three U.S. government agencies and does not address opportunities for consolidating the functions of other U.S. government agencies that carry out significant trade responsibilities; (3) the proposed legislation appears to eliminate the U.S. Commercial Service's domestic network, thus eliminating the link between U.S. businesses and commercial offices overseas; and (4) the placement of the Bureau of Export Administration in the new entity would diminish the office's status relative to the Departments of Defense and State for purposes of interagency coordination of export control issues.