Reinsch Says State Sanctions and Divestment Legislative Efforts Are Ineffective
In discussing the NFTC's advocacy efforts in support of a unified, federal foreign policy, Reinsch said, "We have opposed these sanctions not only on their merits but also because the Constitution reserves the right to conduct foreign policy to the federal government." In this context, he cited the unanimous 2000 Supreme Court ruling in Crosby v. NFTC, in which the NFTC successfully challenged the constitutionality of a
According to Reinsch, "The essence of their ruling was that the President makes foreign policy, not the legislature and the governor of
In closing Reinsch said, "We are often asked what states can do. The answer is they can pass resolutions and lobby Congress and the Administration to take stronger action. However unsatisfactory this may seem to sanctions proponents, only the federal government has the diplomatic and economic resources to move other countries and multilateral organizations to join in effective action."
"Quite apart from the constitutional issues raised by state divestment laws, the costs of pension fund divestment must be weighed very carefully against the prospect of the sacrifices they entail having any beneficial impact," he concluded.
Advancing Global Commerce for Over 90 Years
The National Foreign Trade Council (www.nftc.org) is a leading business organization advocating an open, rules-based global trading system. Founded in 1914 by a broad-based group of American companies, the NFTC now serves hundreds of member companies through its offices in
USA*Engage (www.usaengage.org) is a coalition of small and large businesses, agriculture groups and trade associations working to seek alternatives to the proliferation of unilateral U.S. foreign policy sanctions and to promote the benefits of U.S. engagement abroad. Established in 1997 and organized under the National Foreign Trade Council (www.nftc.org), USA*Engage leads a campaign to inform policy-makers, opinion-leaders, and the public about the counterproductive nature of unilateral sanctions, the importance of exports and overseas investment for American competitiveness and jobs, and the role of American companies in promoting human rights and democracy world wide.