International Trade

International trade is the purchase, sale, and exchange of goods and services by countries across the world's international borders. International trade enables countries to expand markets and access goods and services that may not be available in domestic markets. The advantage of international trade can lead to more affordable products, improved product availability, better product quality, and economic stability.

The earliest evidence of international trade can be traced to prehistoric times. Early trade routes like The Silk Road facilitated trade between China and the Mediterranean, connecting Asia with Europe via the Middle East. Early on, marine navigators traced routes along the coastlines, resulting in the development of maritime trade routes still used today. In 1914, the Panama Canal was completed with an artificial waterway that connected the Caribbean Sea and the Pacific Ocean that provides a shortcut for maritime trade.

International trade involves complex processes, terms and rules related to export, import, and logistics services. Following World War II, a General Agreement on Tariffs and Trade (GATT) was created to reduce trade barriers and promote global economic recovery. The agreement resulted in the creation of the multilateral institutions that now govern and facilitate global trade between countries. For an overview of Global Trade Institutions and Standards visit here.

The United States is the world's largest economy and importer of goods. International trade has been a major factor in economic growth and improvement in the standard of living in the United States. The Tariff Act of 1789 was among the first signed into law by Congress, aimed to promote trade and raise revenue for the federal government. International trade helped shape American history by establishing trade networks, promoting economic growth, creating jobs, and establishing reliance between the United States and other nations.

The United States has numerous agencies that conduct international trade activities. On February 14, 1903, the US Department of Commerce and Labor was created, and on March 4, 1913, it was renamed the Department of Commerce. Today the Department of Commerce has thirteen bureaus including the International Trade Administration and Census Bureau. In 1916 the U.S. Tariff Commission was created, and in 1974, the name was changed to the United States International Trade Commission. In 1962, Congress created the Trade Expansion Act that required the president appoint a Special Representative for Trade Negotiations. U.S. Customs and Border Protection, created in 2003, is responsible for enforcing U.S. borders and customs, and compliance of laws relating to exporting at all ports.

At present, the United States is the world's second largest exporter of meat products. Historically, meat exports have been crucial for the domestic meat industry and expanding international trade with other nations. The first law requiring inspection of meat products was signed by President Benjamin Harrison on August 30, 1890. The law was intended for the export of salt pork and bacon products and required that United States Department of Agriculture (USDA), inspect the products. A year later the law was amended to require the inspection and certification of all live cattle and beef intended for exporting.

Today, the USDA works with foreign governments, international organizations, and the Office of the U.S. Trade Representative to promote international trade, establish international standards to enhance accountability and predictability for agricultural trade. The USDA is made up of twenty-nine agencies with 100,000 employees including the Foreign Agriculture Service (FAS) and Food Safety and Inspection Service (FSIS).

For an in-depth overview of the United States agencies that oversee international trade and trade standards visit here.