More Bang for the Buck: Aligning Commercial Diplomacy Between State and Commerce

Defense Posture and Global ThreatsHouse Foreign Affairs East Asia and Pacific Subcommittee · 2026-07-14 · 119th Congress
The House Foreign Affairs East Asia and Pacific Subcommittee and South and Central Asia Subcommittee held this joint hearing to examine how the State Department and Commerce Department divide labor and coordinate on commercial diplomacy supporting American businesses overseas. Begins at 0:00:10
Transcript
Highlights

Title

Aligning Commercial Diplomacy Between State and Commerce Departments

Purpose

The House Foreign Affairs East Asia and Pacific Subcommittee and South and Central Asia Subcommittee held this joint hearing to examine how the State Department and Commerce Department divide labor and coordinate on commercial diplomacy supporting American businesses overseas. Members explored whether Commerce's Foreign Commercial Service (present at only about a third of US posts) has adequate resources, and whether State Department economic officers need dedicated commercial diplomacy training where FCS is absent, in the context of Chairwoman Kim's HR 962, the Boost American Business Act. Witnesses Assistant Secretary Caleb Orr (State) and Assistant Secretary David Fogel (Commerce) testified on their agencies' roles, results, and coordination. Begins at0:00:10

Who spoke

Chairwoman Young Kim (R-CA)0:00:10: Opened the hearing on aligning commercial diplomacy, noting FCS has only about 200 personnel covering roughly a third of US posts0:01:19; described her HR 962 bill to train State officers doing commercial work where FCS is absent0:02:01; later pressed on lead-agency confusion given State's social media activity0:23:29 and reconciled Commerce's and State's differing dollar-win figures1:16:33.

Rep. Ami Bera (D-CA), Ranking Member0:04:20: Noted the State Department laid off about 1,300 employees in 2015 and FCS staffing has declined from hiring freezes0:05:12; cited China's coordinated support for its firms as a competitive threat0:05:35; touted the Dominance Act, which codifies Forge (formerly the Minerals Security Partnership)0:06:52.

Chairman Bill Huizenga (R-MI)0:07:35: Noted Michigan exported over $58 billion in goods in 2025, supporting an estimated 230,000 jobs0:08:38, and that 89% of Michigan exporters are small/medium businesses0:09:06; highlighted the American AI Export Program, led by FCS0:10:00; later asked Fogel for an update on the AI Export Program, including 78 preset-consortium applications received0:37:290:38:28, and asked about resources for Michigan exporters, pointing to trade.gov0:40:12.

David Fogel, Assistant Secretary of Commerce (Global Markets/FCS)0:12:17: Said Global Markets helped US businesses win $428 billion in client-verified deals last year, supporting 1.3 million jobs0:13:17; cited the Advocacy Center's record $244 billion in wins0:14:13; said FCS covers 95% of global GDP despite limited physical presence0:37:36; described "STREAM" sector prioritization (strategic technologies, energy/critical minerals, manufacturing)1:12:40.

Caleb Orr, Assistant Secretary of State (Economic, Energy, and Business Affairs)0:17:05: Described the new Commercial Diplomacy Enterprise (CDE) as the most significant reorganization of State's economic statecraft in years0:18:56; said State has contributed to over $515 billion in wins and 1.4 million jobs since January 20250:19:59; cited 1,500 economic officers in over 170 countries versus Commerce's roughly 80–840:20:31; said Commerce leads where present, but State leads elsewhere0:22:48.

Rep. Pramila Jayapal (D-WA)0:29:27: Questioned Orr repeatedly on Cuba sanctions, citing Cuba's 20% food self-sufficiency0:29:52 and a 148% rise in infant mortality since 20180:30:39; cited UN High Commissioner Volker Turk on near-doubling infant mortality0:31:09; invoked Article 33 of the Fourth Geneva Convention prohibiting collective punishment0:31:52 and a 1962 State Department memo on inducing "hunger, desperation, and overthrow" in Cuba0:32:35.

Rep. Bill Huizenga (R-MI), second statement0:35:12: Defended the Cuba embargo, arguing Cuba's problems stem from its leadership, not the embargo0:36:12.

Rep. Sarah Elfreth (D-MD)0:41:19: Argued commercial diplomacy needs stable institutions built through development aid, criticizing proposed 25% cuts to economic/development assistance0:42:17; pressed Orr on family conflict-of-interest concerns tied to a Kazakhstan tungsten mining deal involving Dominari Securities and Cantor Fitzgerald0:44:51.

Rep. James Moylan (R-Guam)0:47:16: Cited his U.S. TDA Modernization Act of 2026 for Pacific Island nations0:47:16; asked about assisting small-population high-income-classified countries0:47:44 and about competitiveness against adversarial investment strategies, including geothermal energy potential0:49:540:51:27.

Rep. Robert Garcia (D-CA)0:52:09: (introduced as "Representative Gallego" by chair but self-identifies with a Northern California district) Asked about combating foreign agricultural trade barriers for rice, walnuts, and almonds0:52:16 and China's failure to meet phase-one trade deal agricultural purchase commitments0:55:15; raised rare earth mineral dependence tied to the Collaborative Compact aircraft program at Beale Air Force Base0:57:18.

Rep. Nancy Mace (R-SC)0:58:07: Cited a House Judiciary Committee report, "Closed for Competition," on South Korea's alleged discrimination against American businesses, particularly tires0:58:37; asked what State and Commerce are doing about it0:59:08.

Rep. Tim Burchett (R-TN)1:01:14: Asked whether multiple commercial diplomacy initiatives create duplication1:01:14 and whether agencies should consolidate under one umbrella1:04:32, receiving "no" from both witnesses.

Rep. Maria Elvira Salazar (R-FL)1:05:29: Pressed Orr on Venezuelan interim official Delcy Rodriguez's letter to King Charles requesting release of 31 tons of gold ($4 billion)1:05:54; demanded to see KPMG's quarterly financial monitoring reports on US funds sent to the interim government, saying none had been provided in six months1:08:471:09:16.

Rep. Andy Barr (R-KY)1:11:15: Asked how Commerce should prioritize personnel across critical minerals, energy, semiconductors amid China's AI push1:11:42; discussed promoting Kentucky bourbon exports to India1:14:44.

Key moments

Kim noted FCS has only ~200 personnel covering roughly a third of US posts, prompting her Boost American Business Act (HR 962) to train State officers doing commercial work where FCS is absent0:01:190:02:01.

Fogel and Orr gave differing but seemingly overlapping figures — Commerce's $428 billion/1.3 million jobs versus State's $515 billion/1.4 million jobs — which Kim asked them to reconcile, with Orr explaining State's broader advocacy criteria beyond the formal Advocacy Center process1:16:331:17:32.

Jayapal's sustained exchange with Orr on Cuba: he repeatedly declined to directly answer yes/no questions about infant mortality and food scarcity, instead blaming the "Cuban elite," while she cited a declassified 1962 State memo describing embargo goals as inducing "hunger, desperation, and overthrow of the government"0:29:52.

Salazar's exchange with Orr over Venezuela: she said no KPMG audit reports on US-funded reconstruction money sent to interim leader Delcy Rodriguez have been shared with Congress in six months, despite reports being due every three months, and asked him to commit to producing them1:08:471:10:24.

Elfreth raised a Kazakhstan tungsten mining deal in which Dominari Securities (partly owned by the president's sons) and Cantor Fitzgerald (overseen by Secretary Lutnick's sons) became involved around the same time as $1.6 billion in federal financing was approved, asking what guardrails exist against enrichment of officials' relatives0:44:510:45:15.

Fogel disclosed Commerce received 78 applications for the American AI Export Program's preset consortium — about three times the internal estimate0:38:090:38:28.

Orr said the US has signed over 28 bilateral critical minerals agreements underpinning foreign assistance, including resource mapping in countries previously unaware of their own reserves0:44:13.

Burchett asked whether commercial diplomacy efforts should be consolidated under one agency; both Fogel and Orr said no, citing current record results under the existing division of labor1:04:321:05:09.

Fogel said Commerce's overseas commercial presence, though physically limited to about 84 markets versus State's 170+, covers roughly 95% of global GDP0:37:361:22:36.

Garcia noted China has not lived up to phase-one trade deal agricultural purchase commitments since 2019 and that China controls about 90% of rare earth minerals0:55:430:57:49.

Metadata

CommitteeHouse Foreign Affairs East Asia and Pacific Subcommittee
Chamber / CongressHouse · 119th Congress
Date2026-07-14
TypeHearing
Witnesses
The Honorable Caleb Orr — Assistant Secretary, Bureau of Economic, Energy, and Business Affairs, U.S. Department of State
The Honorable David Fogel — Assistant Secretary, Commerce and Director General of the United States and Foreign Commercial Service, International Trade Administration, U.S. Department of Commerce
Videoyoutube
Transcript275 caption blocks · 13,282 words · 1:26:10 runtime
EventCongress.gov 119301