States' Rights and International Trade - Public Citizen 2026

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The U.S. Constitution, through the Commerce Clause, gives Congress exclusive power over trade activities between the states and with foreign countries. Trade within a state is regulated exclusively by the states themselves.
Trade agreements do not restrict a states right to regulate and do not automatically preempt, invalidate or overturn state laws. Nothing in any trade agreement prevents the United States or any state from enacting, modifying, or fully enforcing domestic laws.
Trade and human rights have an intertwined relationship, as human rights often influence the prevalence, scope, or availability of an international trade agreement. Most of the worlds economically dominant countries use human rights language in their trade agreements.

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Under NAFTA, not only can countries challenge state laws as barriers to trade, but corporations can also launch trade suits against state policies in trade tribunals.
The most direct barrier to trade is an embargo a blockade or political agreement that limits a foreign countrys ability to export or import. Embargoes still exist, but they are difficult to enforce and are not common except in situations of war. The most common barrier to trade is a tariffa tax on imports.
Trade Regulation: an overview The U.S. Constitution, through the Commerce Clause, gives Congress exclusive power over trade activities between the states and with foreign countries. Trade within a state is regulated exclusively by the states themselves.
The four main types are protective tariffs, import quotas, trade embargoes, and voluntary export restraints. The most common type of trade barrier is the protective tariff, a tax on imported goods. Countries use tariffs to raise revenue and to protect domestic industries from competition from cheaper foreign goods.
Consumer goods, raw materials, food, and machinery all are bought and sold in the international marketplace. International trade allows countries to expand their markets and access goods and services that otherwise may not have been available domestically.

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