ExecutiveOrdersEO
EO 13177Executive OrderClinton · D

Executive Order 13177

National Commission on the Use of Offsets in Defense Trade and President's Council on the Use of Offsets in Commercial Trade

This executive order establishes two advisory bodies to study offsets in international trade: an 11-member National Commission on the Use of Offsets in Defense Trade (mandated by Public Law 106-113) and a parallel President's Council on the Use of Offsets in Commercial Trade. The Commission must report to Congress within 12 months of establishment on foreign offset practices, their impact on U.S. industry and national security, and proposals to reduce detrimental effects; both bodies terminate after the report is transmitted.

Federal Register Open PDF 65 FR 76558

Impact dates

  1. Commission and Council termination (30 days after report transmission)

  2. Commission report to Congress

Key directives

  • Establish 11-member National Commission with specified sectoral representation
  • Establish President's Council composed of Commission members or their designees
  • Commission to report to Congress within 12 months of establishment on offset practices, impacts, and policy recommendations
  • DoD to provide administrative support and funding for both bodies
  • Both bodies terminate 30 days after transmitting report required by section 1248(b) of Public Law 106-113

Who is ordered

Timeline

Immediate

  • Establishment of National Commission and President's Council
  • OMB member designated as Commission Chair

Near term (90d)

  • Commission membership appointment process with congressional leadership concurrence
  • DoD to arrange administrative support and funding for both bodies

Long term

  • Commission report due to Congress (within 12 months of establishment)
  • Automatic termination of both bodies 30 days after report transmission
  • Potential policy recommendations on offset regulation and monitoring agencies

Risks & tensions

  • 12-month reporting deadline is contingent on 'after the Commission is established,' not signing date—actual date uncertain pending appointments
  • Vague whether '12 months' clock starts at signing, first meeting, or formal establishment; text implies establishment as triggering event
  • Parallel Council structure creates potential for conflicting findings or turf issues between defense and commercial trade analyses
  • Termination upon report transmission may limit follow-through on recommendations
  • Dependency on foreign critical components flagged as explicit national security concern
Executive Order 13177: National Commission on the Use of Offsets in Defense Trade and President's Council on the Use of Offsets in Commercial Trade · Executive Orders