Category: Press Releases and Statements

Despite Progress, the WTO Ministerial Was a Missed Opportunity 

Posted on by Joe Locher

WASHINGTON, D.C. – National Foreign Trade Council (NFTC) Vice President for Global Trade Policy Tiffany Smith today issued a statement in response to the conclusion of the World Trade Organization (WTO) 14th meeting of the Ministerial Conference (MC14) on Monday without action on several key priorities:

“It is disappointing that despite Ambassador Greer and USTR’s efforts, and strong support across WTO members, a handful of countries succeeded in blocking agreement on several key outcomes, including a long-term extension of the moratorium on customs duties on electronic transmissions, the e-commerce work program, and the ministerial declaration and work program on WTO reform. 

“With global AI adoption and digital economy issues taking on increasing importance, a lapse in the moratorium and e-commerce work plan leaves the WTO on the sidelines at exactly the wrong moment.

“The inability to reach a unanimous consensus on extending the moratorium and work program, despite strong momentum, underscores the urgent need for the WTO to make progress on a reform agenda that prevents one or two countries from blocking initiatives that are in the interest of a majority of members.

“While we are encouraged that supporters of the E-Commerce Agreement are moving ahead to implement these obligations, it is unfortunate – but understandable – that they have had to seek a path outside of the WTO. This further underscores the importance of reform efforts so that the WTO remains a viable forum for negotiating new agreements on important issues.

“We are encouraged by the Director General’s guidance to re-engage on these issues in Geneva and urge negotiators to get back to the table so that a resolution of these issues can be reached quickly.” 

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About the NFTC

The National Foreign Trade Council (NFTC) is the premier business association advancing trade, tax, national security and supply chain policies that support access to the global marketplace. Founded in 1914, NFTC promotes an open, rules-based global economy on behalf of a diverse membership of U.S.-based businesses, who account for over $6 trillion in revenue and employ nearly 6 million people in the United States.

Canada’s DST Repeal Should Be An Inflection Point and Global Signal to Reconsider DSTs

Posted on by Joe Locher

WASHINGTON, D.C.- National Foreign Trade Council (NFTC) Senior Director for Trade and Innovation Brad Wood today issued a statement following yesterday’s passage of Canada’s budget implementation bill:

“We welcome news that with the passage of Canada’s budget implementation act, the government has finally followed through and repealed its digital services tax (DST). 

“We thank the Trump Administration for its commitment to ending discriminatory digital and tax policies around the globe, and hope this sends a message to other jurisdictions that the United States will not stand for measures that target American firms.  

“Having closed this chapter, we hope Canada and the United States can seize this momentum to reinvigorate their bilateral dialogue. It is time to redouble efforts to address what barriers remain, set a path towards renewing an upgraded USMCA, and reaffirm that the United States and Canada are more competitive and resilient as close partners and allies.”

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About the NFTC

The National Foreign Trade Council (NFTC) is the premier business association advancing trade, tax, national security and supply chain policies that support access to the global marketplace. Founded in 1914, NFTC promotes an open, rules-based global economy on behalf of a diverse membership of U.S.-based businesses, who account for over $6 trillion in revenue and employ nearly 6 million people in the United States.

NFTC Foundation to Honor Chairman Smith, Ambassador Switzer, and Senator Kaine

Posted on by Joe Locher

Washington D.C. – The National Foreign Trade Council (NFTC) Foundation this week will honor House Ways and Means Committee Chairman Jason Smith, Deputy United States Trade Representative Rick Switzer, and Senator Tim Kaine at its annual dinner on March 18. 

“This year’s awardees are true champions of U.S. industry. They have stood up for American companies, fought against discriminatory policies abroad, and helped shape the landscape to enable the United States to compete internationally and support American jobs,” said Jake Colvin, President of the NFTC. “At a time of rapid policy change, we are grateful to Chairman Smith, Ambassador Switzer, and Senator Kaine for their steadfast commitment to the success of American businesses of all sizes.”

This year, Chairman Jason Smith will be awarded the International Tax Award, Ambassador Switzer with the Trade Leadership for the Digital Age Award, and Senator Kaine with the World Trade Award. 

The dinner will also feature remarks from the NFTC Foundation’s President, Ambassador Demetrios Marantis, NFTC’s Board Chair Ambassador Susan Schwab, and Colvin.

The NFTC Foundation’s World Trade Dinner is a valued tradition in Washington D.C. Past speakers and honorees have included Members of Congress and cabinet officials, CEO’s, thought leaders, and heads of state.

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About the NFTC

The National Foreign Trade Council (NFTC) is the premier business association advancing trade, tax, national security and supply chain policies that support access to the global marketplace. Founded in 1914, NFTC promotes an open, rules-based global economy on behalf of a diverse membership of U.S.-based businesses, who account for over $6 trillion in revenue and employ nearly 6 million people in the United States.

 

NFTC Urges WTO Ministers to Pass a Permanent Ban on Digital Customs Duties

Posted on by Veronica Berkshire

WASHINGTON, D.C. – National Foreign Trade Council (NFTC) Vice President for Global Trade Policy Tiffany Smith today issued a statement calling on the World Trade Organization (WTO) to make its moratorium on customs duties on electronic transmissions permanent at the 14th meeting of the Ministerial Conference (MC14) next week in Cameroon:

“As WTO Ministers gather next week in Cameroon for the 14th Ministerial Conference (MC14), there is nothing of greater importance on their agenda than extending – permanently – the WTO’s longstanding ban on customs duties on electronic transmissions.

“It is beyond time to break the every-two-years cycle of countries refusing to endorse an extension of the moratorium, only to relent at the 11th hour and agree to a 2-year extension so that the entire process repeats again at the next Ministerial.

“While it is encouraging that the debate in Geneva has evolved from whether to renew the moratorium at all to how long an extension should last, WTO Ministers need to act once and for all to ban the duties permanently. This would provide a clear signal that the WTO is prepared to tackle 21st century challenges and show that WTO members are committed to creating an environment that encourages long-term investment, innovation, and cutting-edge cross-border delivery of digital services.

“A 2023 report shows that digitally delivered services now account for 54 percent of global services exports and are growing much faster than conventional services. Leaving the door open for countries to add tariffs to these transactions would be a step in the wrong direction at a time when countries should be embracing the opportunities that digital trade and AI can provide.

“While the MC14 agenda will call on Trade Ministers to tackle a number of challenging issues to build momentum for a broader reform agenda, adopting a permanent ban, in conjunction with an elevated and more formal e-commerce work program, would be a powerful shot in the arm for the WTO, its member countries, and businesses of all sizes around the world.”

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About the NFTC
The National Foreign Trade Council (NFTC) is the premier business association advancing trade, tax, national security and supply chain policies that support access to the global marketplace. Founded in 1914, NFTC promotes an open, rules-based global economy on behalf of a diverse membership of U.S.-based businesses, who account for over $6 trillion in revenue and employ nearly 6 million people in the United States.

Agriculture and Manufacturing Leaders Urge Renewal of USMCA

Posted on by Joe Locher

Panel hosted by the National Corn Growers Association and the National Foreign Trade Council brings together leaders from the agriculture, automotive and technology sectors to discuss the agreement’s impact on American jobs and competitiveness.

Washington, D.C. – Leaders from the agriculture, manufacturing and technology sectors convened in Washington today to highlight the importance of renewing the United States-Mexico-Canada Agreement as the landmark trade agreement approaches its formal review period.

The panel discussion, hosted by the National Corn Growers Association (NCGA) and the National Foreign Trade Council (NFTC), underscored how the trilateral agreement supports American jobs, strengthens North American supply chains and helps U.S. industries compete globally.

Speakers from agriculture and manufacturing sector, along with a United States senator, emphasized the broad economic impact of USMCA, noting how the agreement has strengthened North American trade and created greater certainty for businesses across sectors. They also highlighted how the trilateral framework helps American companies compete globally while supporting jobs and investment throughout the United States.

“I appreciate the National Foreign Trade Council and the National Corn Growers Association for hosting this important conversation,” said Senator Young, the keynote speaker at the event. “Working to improve and preserve USMCA is critical for Indiana’s agricultural and manufacturing communities who rely on the certainty and stability of market access in North America.”

Participants in the discussion included Matt Frostic, a Michigan farmer and first vice president of the National Corn Growers Association; Elizabeth Kosobucki, director of trade policy strategy at Ford Motor Company; and Colton Hotary, senior director of government and corporate affairs at LG. The conversation was moderated by Doug Palmer of Politico.

“USMCA has been incredibly important for farmers like me,” said Matt Frostic, a fifth-generation Michigan farmer and first vice president of the National Corn Growers Association. “Mexico and Canada are two of our most important export markets and the certainty this agreement provides allows farmers to plan, invest and continue feeding and fueling the world. As the agreement enters its review period, it’s important that policymakers focus on strengthening what works so American agriculture and industry can continue to grow.”

NFTC senior director and USMCA lead, Brad Wood added: “We are pleased to partner with NCGA to underscore that USMCA is critical for American workers across every sector, from farmer to plant operator. U.S. production and manufacturing rely on the indispensable inputs and efficiencies from our geographic allies. They are also our top customers; America exports more to Canada and Mexico than its next 8 export markets combined. We must prioritize these partnerships, restore predictability, and renew a trilateral USMCA.”

The event is part of broader efforts by the Agricultural Coalition for USMCA to highlight the agreement’s importance to American agriculture and ensure policymakers preserve and strengthen the trilateral trade framework.

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About the National Corn Growers Association

Founded in 1957, NCGA represents more than 36,000 dues-paying corn growers in 48 states, and the interests of more than 500,000 farmers who contribute through corn checkoff programs in their states. NCGA and its affiliated associations in 27 states work together to help protect and advance corn growers’ interests.

About the NFTC

The National Foreign Trade Council (NFTC) is the premier business association advancing trade, tax, national security and supply chain policies that support access to the global marketplace. Founded in 1914, NFTC promotes an open, rules-based global economy on behalf of a diverse membership of U.S.-based businesses, who account for over $6 trillion in revenue and employ nearly 6 million people in the United States.

Industry Groups Urge the Administration to Extend USMCA

Posted on by Joe Locher

WASHINGTON, D.C.- The National Foreign Trade Council (NFTC) today joined nearly 70 leading industry associations representing the full breadth of the U.S. economy in calling on the administration to extend the United States-Mexico-Canada Agreement (USMCA) and to ensure stakeholder engagement throughout the process.

In a letter addressed to United States Trade Representative Jamieson Greer, the groups reiterated their strong support for a trilateral USMCA, highlighting the importance of one agreement with both Canada and Mexico to American competitiveness. The letter emphasizes the importance of ongoing stakeholder consultations as the administration engages Canada and Mexico on upgrades to the agreement.

The associations make the case that “[a]s the United States’ largest export markets and primary sources of indispensable inputs, Mexico and Canada are foundational to our economic strength and resilience.”

“U.S. production and supply chains are built on trillions in long-term investment, which have been refined over years to be highly efficient to comply with USMCA’s rigorous framework,” the letter continues. “Material changes to USMCA requirements or rules of origin could lead to multi-year supply chain disruptions at significant cost to companies invested in America, raise consumer prices, and erode North American competitiveness. It is therefore imperative that proposals, including rules of origin, be clear, implementable, recognize manufacturing and production realities, and minimize trade disruptions.”

The groups reinforced their commitment to working constructively with the administration towards a positive outcome while also emphasizing the importance of restoring duty-free North American trade.

Read the full text here.

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About the NFTC

The National Foreign Trade Council (NFTC) is the premier business association advancing trade, tax, national security and supply chain policies that support access to the global marketplace. Founded in 1914, NFTC promotes an open, rules-based global economy on behalf of a diverse membership of U.S.-based businesses, who account for over $6 trillion in revenue and employ nearly 6 million people in the United States.

NFTC Urges Administration and Congress Towards New Approaches after Landmark IEEPA Decision

Posted on by Veronica Berkshire

WASHINGTON, D.C. – National Foreign Trade Council (NFTC) President Jake Colvin today issued a statement following the Supreme Court’s decision regarding the use of the International Emergency Economic Powers Act (IEEPA) to implement tariffs:

“It’s a relief to see the Supreme Court unequivocally decide that IEEPA did not provide the authority for the administration to impose more than $133 billion in tariffs on American businesses and consumers.

“In the short-term, this ruling could increase uncertainty as companies digest the impact of this decision, but ultimately should bring longer-term relief for American businesses and consumers.

“We hope the administration will seize this opportunity to recalibrate its approach rather than rushing to replicate some or all of the tariffs through other means.

“The administration has a unique chance to pivot towards a much more targeted approach to tariffs while focusing on lowering prices for businesses and consumers and creating greater certainty with our trading partners.

“Tariff authority belongs to Congress. This decision should be an inflection point and a reason for Congress to finally reclaim control of its Constitutional authority. We encourage a bipartisan effort to reform the delegation of the full range of tariff authorities, which would increase certainty for American businesses and consumers.

“We urge the administration to honor the spirit of the decision and identify a low-burden and automated administrative process to return tariff revenue to U.S. importers quickly and efficiently.”

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About the NFTC
The National Foreign Trade Council (NFTC) is the premier business association advancing trade, tax, national security and supply chain policies that support access to the global marketplace. Founded in 1914, NFTC promotes an open, rules-based global economy on behalf of a diverse membership of U.S.-based businesses, who account for over $6 trillion in revenue and employ nearly 6 million people in the United States.

U.S.-India Joint Statement Marks Important Progress in Bilateral Commercial Relationship

Posted on by Joe Locher

Washington, D.C. – National Foreign Trade Council (NFTC) Vice President for Global Trade Policy Tiffany Smith released a statement following the administration’s announcement of a Joint Statement providing the outline of an “Interim Agreement” with India:

“The Joint Statement announcing a framework for an Interim Agreement with India is an important development in our relationship with one of the world’s biggest economies, and we thank the administration, and USTR in particular, for their efforts. 

“We were pleased to see a significant reduction in tariffs in both the U.S. and India, as well as progress on a number of challenging issues such as the elimination of India’s import licensing in the ICT sector and a commitment to addressing digital trade barriers that limit opportunities for U.S. companies in India.

“We hope the Interim Agreement creates momentum to conclude the comprehensive U.S.-India Bilateral Trade Agreement (BTA), addresses additional irritants, further reduces bilateral tariffs, and delivers on the promise of a mutually beneficial bilateral relationship. 

“A critical element of the BTA’s outcomes on digital trade must include India’s support for a permanent global moratorium on customs duties on electronic transmissions at the WTO’s 14th Ministerial Conference, and we urge the administration to keep pressing India to make this commitment in advance of the ministerial.”

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About the NFTC

The National Foreign Trade Council (NFTC) is the premier business association advancing trade, tax, national security and supply chain policies that support access to the global marketplace. Founded in 1914, NFTC promotes an open, rules-based global economy on behalf of a diverse membership of U.S.-based businesses, who account for over $6 trillion in revenue and employ nearly 6 million people in the United States.

Congress and the Administration Must Continue to Safeguard America’s Technology Competitiveness

Posted on by Joe Locher

Washington, D.C. – National Foreign Trade Council (NFTC) Vice President for Global Trade Policy Tiffany Smith issued a statement today on the House Ways & Means Trade Subcommittee hearing on “Maintaining American Innovation and Technology Leadership.”

“Today’s hearing underscores the important role the United States should play in creating a globally competitive environment where American innovators, creators, technology, and services firms can thrive. Thank you to the subcommittee for calling today’s hearing and to the members for their longstanding staunch support for U.S. technological leadership.

“Crucially, the United States must continue to push back on foreign government actions that discriminate or disadvantage U.S. companies, and we thank the administration for their continued commitment and recent successes in this area. 

“However, governments around the world continue to seek to protect their markets and profit from U.S. companies’ success. We urge Congress and the administration to continue fighting to level the playing field so that American businesses can continue to deliver cutting-edge technologies, products, and services around the world.”

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About the NFTC

The National Foreign Trade Council (NFTC) is the premier business association advancing trade, tax, national security and supply chain policies that support access to the global marketplace. Founded in 1914, NFTC promotes an open, rules-based global economy on behalf of a diverse membership of U.S.-based businesses, who account for over $6 trillion in revenue and employ nearly 6 million people in the United States.

Side-by-Side Agreement Is Crucial Step Forward in International Tax Framework Negotiations

Posted on by Joe Locher

WASHINGTON D.C. – National Foreign Trade Council (NFTC) Vice President for International Tax Policy Anne Gordon today issued the following statement:

“Today’s announcement that the OECD Inclusive Framework created a safe harbor for robust national tax systems like that of the United States is a crucial step forward in the long path toward securing a more certain international tax framework. This move recognizes that tax systems which accomplish the goals of BEPS are on par with the Pillar Two global minimum tax and should therefore coexist with the international framework.

“Additionally, ensuring an appropriate treatment for non-refundable credits and other tax incentives is a much-needed development, which has long been a priority of the U.S. business community by allowing countries to determine the best model for incentivizing real economic investment without disadvantaging American companies. 

“We also welcome the temporary extension of the Transitional CbCR Safe Harbor and creation of the Ultimate Parent Entity Safe Harbor, which will provide a more seamless transition for companies to the new guidance, including the Simplified Effective Tax Rate Safe Harbor.

“Thank you to the administration for its commitment to these negotiations and for ensuring that American companies can compete on a level playing field and are not burdened by superfluous or duplicative requirements, and to Congress for their dedication to the success of American companies globally.

“NFTC looks forward to comprehensively reviewing the guidance from the OECD and will continue to participate in this process to minimize any unintended consequences resulting from the integration of the two systems.”

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About the NFTC

The National Foreign Trade Council (NFTC) is the premier business association advancing trade, tax, national security and supply chain policies that support access to the global marketplace. Founded in 1914, NFTC promotes an open, rules-based global economy on behalf of a diverse membership of U.S.-based businesses, who account for over $6 trillion in revenue and employ nearly 6 million people in the United States.