Trade agreements are a matter of fairness, not regulation. They generally say that government rules or standards should not discriminate between U.S. and foreign suppliers of goods and services. Trade agreements do not restrict a state`s right to regulate and do not automatically prevent, disprove or overturn state laws. Nothing in a trade agreement prevents the United States or a state from legislating, amending or fully enforcing national laws. And the international bodies that were created to investigate disputes over trade agreements do not have the power to change U.S. law or require a state or local government to change its laws or decisions. Only the federal state or the federal states can amend a federal or regional law. Trade agreements encourage foreign governments to adopt the kind of open and transparent rules for establishing non-discriminatory rules and laws and regulations that are a sign of an ordinary process in the United States and apply to all levels of government in the United States. At the same time, in every agreement we negotiate, the United States remains very sensitive to and protects our federal system of shared power. It is important to understand what trade agreements do or do not do.
Click here for a Trade Fact Sheet on state sovereignty and trade agreements.
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