The commerce clause is a law which is listed in the United States Constitution which states that that the government has the power to regulate the trade and commerce which takes place in the country. The commerce clause deals with the trade relations which the United States have with the foreign nations, interstate and even with the Indian tribes. The rulings aims to regulate the powers of the government to make legislations in this respect. The power has been described in Article I, section 8 clause 3 of the constitution and provides exclusive rights to the government. In details the clause states that the government would have the power to regulate the commerce with foreign nations which may include several states and even Indian tribes. Therefore, a detailed analysis of the commerce clauses shows that there are three different trading laws which are namely Foreign Commerce clause, Interstate Commerce Clause and Indian Commerce Clause. This law provides the ability to the congress to regulate the relationship which exists between foreign states in terms of commerce. The commerce clause is considered to be important as the same provides legislative power to the congress to control the trade relations within the country as well as with the foreign nations.
The origin of the commerce clause is a bit controversial as there is no definition stated in the constitution and there are different arguments that the same is implied or the farmers of the constitution intended to describe trade relations with different states on an individual basis. It is to be also noted that there lies interpretation in drawing the line for power between the federal and state government. A case law of Gibbons v. Ogden, 22 U.S. 1 (1824) can be cited where the supreme court was of the opinion that intrastate activities in terms of trade can be held as Commerce clause provided the activity was a part of a larger interstate transactions. This interpretation complicates the jurisdiction of the federal government and the state government. Another major regulation which is associated with the Commerce Clause is the Dormant Commerce Clause which reflects the provisions which is implicit in the commerce states that prohibits the states passing any legislation which can affect the interstate commerce activities.
Therefore, Commerce clause can be said to be both an authority which is granted to the government by the constitution and also a restriction on the regulatory authority of the state. The congress has used their powers in relation to the commerce clause to justify the use of legislative powers over the activities of the state and its citizens. This is a reason for the controversy which has arisen for the balance of power between the federal government and the state government. In terms of positive interpretation of the law, it provides the foundation of the regulatory authority of the US government. The clause helps the government to frame foreign policies in respect of trade with foreign countries and also helps with intrastate transactions.
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