The economy has become more and more globalized and for many problems there is an important international aspect. The financial problem is a worldwide one and trade treaties are of increasing importance. The interesting thing is how Obama will get the economic team and the state department to work with each other to avoid turf battles. The point is that Bush, in his first term, really diminished the role of the state department. Obama and every Democrat ran on using diplomacy more - so strengthening State is a very logical move. This shift might be mirrored in the Senate.
Looking at the committees that provide oversight on these international economic issues - something I found a long time ago shows that it has sometimes been the Finance committee, but it was often a SFRC function - and that is the committee that overseas the State Department. Here is a link to an oral history by the Chief of Staff to Fullbright, who headed the SFRC.
http://www.senate.gov/artandhistory/history/resources/pdf/Marcy_interview_8.pdfHere he speaks of how jurisdiction changed based on the interests and abilities of the head. (That and the change in the needs of the times might be why, Obama is broadening the responsibility of State - both on economic issues and on taking over the "nation building" from the Department of Defense.)
" I am reminded of an incident that occurred before I was with the Committee, but with which I am familiar. When the international financial institutions were being set up, the World Bank for instance, Senator
Milliken of Colorado was chairman of the Finance Committee, and Senator Vandenberg was chairman of the Foreign Relations Committee. Under the Reorganization Act it was clear that the international financial institutions were within the jurisdiction of the Senate Foreign Relations Committee. But Senator Vandenberg went to Senator Milliken, and said he didn't know anything about these international financial institutions and suggested Senator Milliken take over. So without any formal decision, that was what happened. Interestingly enough, some years later when Senator Fulbright became chairman of the Foreign Relations Committee, having moved to Foreign Relations from chairmanship of the Finance Committee, I went to him and told him the story that I have just told you. I suggested that if he wanted to reclaim jurisdiction for Foreign Relations, then was the time to make it clear to the Parliamentarian. Without hesitation, Senator Fulbright said, "We'll take it." So Fulbright undid what Vandenberg had done at an earlier time."
There already were signs that the incoming SFRC wants more of a role on international economic issues. Senator Kerry has been speaking of hearings and investigations on international tax shelters (like the Cayman Islands). At a Finance committee hearing last summer, he and Jack Blum, Kerry's lead person on BCCI who was called to that hearing, spoke of the issue (loss of tax revenue to these shelters) as an international problem that needs an international solution. Senator Kerry is the only person on both the Finance committee and SFRC, which makes it likely that some of these international economic issues will move - not just at the executive branch, but in the regulatory branch.
One question I have is whether they can claim jurisdiction over international trade treaties. This would be interesting because when CAFTA was done, Kerry wrote an AFL/CIO praised amendment with environmental and labor safeguards that failed 10 to 10 in a Republican dominated Finance committee in 2005. The Democrats on the Finance committee are among the most conservative in the Senate. Shifting that to SFRC, puts Kerry (the most liberal member of the Finance Committee) with Dodd, Feingold and Boxer - as the next 3 Senators.