Category: Press Releases and Statements

DST Moratorium a Step in the Right Direction

Posted on by Veronica Berkshire

Washington D.C. – National Foreign Trade Council President Jake Colvin issued the following statement following reports that the Administration is working multilaterally to extend the Digital Services Tax (DST) moratorium until the end of next year:

“We welcome the Administration’s efforts to extend the DST moratorium as countries continue their work to finalize the Inclusive Framework at the OECD. This should give Inclusive Framework negotiators time to ensure the final policies are administrable and not overly burdensome, rather than pushing to meet an artificial deadline.

“While this process concludes, it would be shortsighted for countries to move forward individually with implementing a web of discriminatory, country-specific DSTs before the outcome of Pillar One is clear.

“We hope that PIllar One negotiations will lead to an outcome that makes DSTs, which primarily target U.S.-based companies, obsolete. We urge countries participating in the Inclusive Framework negotiations to continue to participate in good faith and to agree to extend the moratorium past January 1, 2024.”

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About the NFTC
The National Foreign Trade Council (NFTC) is the premier business association advancing trade and tax 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.

Business Community Outlines Customs Modernization Priorities

Posted on by Veronica Berkshire

Washington D.C. – The National Foreign Trade Council (NFTC) today joined 12 leading industry associations representing a diverse group of sectors across the U.S. economy in outlining their legislative priorities as Congress considers updates to current U.S. customs laws.

“The business community supports this process and the idea that there needs to be a balance between trade facilitation, which drives prosperity, and enforcement, which keeps Americans safe,” said John Pickel, NFTC Senior Director for International Supply Chain Policy. “The vast majority of traders are compliant and this is an opportunity to recalibrate the relationship between government and responsible industry partners.”

The letter, addressed to Senators Ron Wyden (D-OR) and Mike Crapo (R-ID) as well as Representatives Jason Smith (R-MO) and Richard Neal (D-MA) underscored the importance of trade for our nation’s economy and the role that customs law and rules play in facilitating trade for America’s businesses.

The letter reads, in part: “The last update to the nation’s customs laws made under the Trade Facilitation and Trade Enforcement Act of 2015 included many important provisions but the trade landscape has changed dramatically since enactment of that law, including the explosive growth of global e-commerce, the emergence of many new actors – good and bad – in the trade environment, post-Covid supply-chain constraints and resiliency planning, and growing attention to supply chain transparency.”

It continues: “Customs modernization should not only provide CBP with appropriate authority and tools to stop unlawful trade, but to facilitate lawful trade, protect good actors, and provide opportunities for the trade community to engage with CBP in advancing its important trade mission.”

The NFTC has previously enumerated many of these priorities, including during testimony by John Pickel during a Senate Finance Committee hearing on Customs Modernization. You can read his testimony and watch a video of the hearing here.

The trade facilitation measures proposed by the business community in the letter include:

  • Government Wide Policy Consistency in the Customs Entry Process;
  • Continue to Facilitate Entries Under Regulations;
  • Fight forced labor through better information sharing;
  • Timelines for Government Response;
  • Codify requirements for existing carriers;
  • Establish Data Collection Standards;
  • Clarify the benefits, opportunities, and harmonization of trusted trader programs;
  • Limit the Use of Outdated “Redelivery” Authority;
  • Update Access to Information by Embracing Progressive Filing;
  • Section 301 Duty Refunds;
  • Modernizing the Automated Commercial Environment;
  • Studying the current Duty and Fee Structure;
  • Support Due Process in Enforcement of U.S. Laws;
  • Promote Visibility and Transparency;
  • Increased Resources to Fight Counterfeits;
  • Enhance Information Sharing with the Private Sector;
  • Fund Ports of the Future; and
  • Define Structured Green Trade Benefits.

Read the letter and recommendations here.

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About the NFTC
The National Foreign Trade Council (NFTC) is the premier business association advancing trade and tax 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.

Tax Treaty Negotiations a Priority for U.S. Businesses

Posted on by Veronica Berkshire

Washington D.C. – The National Foreign Trade Council (NFTC) today released its 2023 Tax Treaty Survey after a several year hiatus.

The survey, which was answered by tax professionals for NFTC member companies, asked businesses to rate their tax treaty priorities around the world.

“Tax treaties give U.S. companies certainty when competing in international markets. Without these treaties, our companies face higher tax rates than their competitors and their employees abroad often face the burden of double taxation on their income,” said NFTC VP for International Tax Policy Anne Gordon. “It is clear from this survey that U.S. companies are clamoring for the Administration to prioritize the negotiation of these agreements with a variety of countries all around the world where their companies already have substantial presence.”

Highlights of the report include:

  • Brazil was identified as the most important to respondents.
    The next tier of countries that were identified as #1 priority to respondents are: Taiwan followed by Singapore, Saudi Arabia and Switzerland.
  • Issues listed as priorities within these countries include Transfer Pricing, reducing withholding rates on Royalties and Dividends, the Mutual Agreement Process (MAP) and Covered Taxes.
  • Countries with the overall most requests for a Treaty were Brazil, Singapore, Taiwan and India. The next tier includes Colombia, Hungary, Saudi Arabia, and Switzerland followed by Malaysia, Mexico and the UK.
  • In total, respondents requested treaties with 31 countries.

Read the full results here.

An infographic of the top most requested countries can be found here.

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About the NFTC
The National Foreign Trade Council (NFTC) is the premier business association advancing trade and tax 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.

NFTC Welcomes Movement on U.S.-Chile Tax Treaty; Urges Quick Ratification

Posted on by Veronica Berkshire

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

“The U.S.-Chile Tax Treaty will offer U.S. companies operating in Chile long-sought certainty that will allow them to fairly compete in a country with enormous potential in Latin America – a region where the U.S. currently only has two other treaties. U.S. companies currently pay a higher tax rate than those incorporated in the country, putting them at a comparative disadvantage when competing in the Chilean market. We commend the Foreign Relations Committee for favorably reporting the Treaty today and we urge the Senate to quickly approve the ratification, so we can continue our forward progress towards increased business opportunities in the country.”

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About the NFTC
The National Foreign Trade Council (NFTC) is the premier business association advancing trade and tax 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.

UK Joining CPTPP is a Missed Opportunity for U.S. Business and Workers

Posted on by Veronica Berkshire

WASHINGTON DC. – National Foreign Trade Council (NFTC) President Jake Colvin today issued the following statement following news that the United Kingdom has substantially concluded talks to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP):

“The news that the United Kingdom has concluded negotiations to join CPTPP is a stark reminder that the world isn’t waiting for the United States and threatens to put U.S.businesses, farmers, ranchers and workers at a disadvantage in the Asia-Pacific and Europe.

“The UK’s accession moves CPTPP from an important regional initiative to a critical global alliance of some of America’s closest economic and political partners.

“While we congratulate the UK Government for being part of this massive agreement, it’s frustrating to see America’s allies writing global rules and creating new market opportunities without the United States.

“We continue to urge the Administration and Congress to pursue an ambitious trade policy agenda that opens markets and creates new opportunities for American workers.”

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About the NFTC
The National Foreign Trade Council (NFTC) is the premier business association advancing trade and tax 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.

During NFTC Foundation Dinner, Honorees Emphasize Importance of Ambitious U.S. Trade Policy; Multilateral Solutions to Global Challenges

Posted on by Veronica Berkshire

WASHINGTON DC – Last night the National Foreign Trade Council (NFTC) Foundation hosted its annual World Trade Dinner and Awards Ceremony at the Planet Word Museum in Washington DC. This year, the Foundation honored Senators Chris Coons and Todd Young and Ms. Grace Perez-Navarro, OECD Director of the OECD’s Centre for Tax Policy and Administration.

NFTC President Jake Colvin delivered opening remarks and called on those in attendance to continue their work “to ensure that there are commercially-meaningful outcomes across the variety of trade and tax initiatives that are already underway” in Congress and the Administration while emphasizing that “it is critical for the United States to maximize its leadership in the global economy to fulfill our shared ambitions for American businesses and workers.”

The first honoree of the night, Senator Todd Young, was recognized for his work in keeping digital trade at the forefront of U.S. trade policy. During his remarks, he emphasized the need to “move forward boldly with our partners and allies and forge closer agreements, rules that democratic, freedom loving countries, consultatively and in concert with one another, develop, as opposed to vacating the playing field.”

Senator Chris Coons was honored with the World Trade Award for his work in advocating for ambitious U.S. leadership in setting the rules of the road on trade. In his remarks, he called for working with our allies to “develop global rules rooted in democratic values,” adding that “this can be another American century, and I’m convinced that trade, free trade, fair trade, trade that advances not just our interests, but our values, is very much at the center of that.”

During her remarks, Ms. Grace-Perez Navarro, this year’s International Tax Award honoree, highlighted the importance of a multilateral approach to addressing global taxation challenges, adding that the need for joint action is not too dissimilar for multilateral actions on trade. Regarding the OECD’s Pillar One and Two Process, she emphasized; “if we don’t have international tax rules that are applied in a consistent manner, we will be back to a situation of double or multiple taxation.”

The dinner also included remarks from Leslie Griffin, President of the NFTC Foundation and NFTC Foundation Vice President Lindsey Grossman.

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About the NFTC
The National Foreign Trade Council (NFTC) is the premier business association advancing trade and tax 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.

Hua Wang to Lead the NFTC Foundation’s Global Innovation Forum

Posted on by Veronica Berkshire

Washington D.C. – National Foreign Trade Council (NFTC) President Jake Colvin today announced that Hua Wang will serve as the new Executive Director of the Global Innovation Forum (GIF).

As GIF’s Executive Director, Hua engages an international network of small, minority and women-led businesses, nonprofit leaders and government officials to improve the trade and digital policy landscapes.

Ms. Wang previously led a technology accelerator in Alabama and founded SmartBridge Health, a cancer telemedicine startup, through which she served as an entrepreneur-in-residence at Startup Chile, the Malaysian Global Innovation & Creativity Centre and the Halcyon Incubator. She has also previously worked at Proskauer, K&L Gates, Cisco Systems and the Kauffman Foundation.

“Hua’s experience as a founder and with the startup ecosystem gives her unique insight into the role of global markets and public policy in the success of small and early stage businesses,” said Colvin. “She is extraordinarily well-suited to grow GIF’s impact and ensure that trade and digital policies create more inclusive access to the global marketplace.”

Launched in 2009, GIF is a project of the 501(c)(3) NFTC Foundation that connects small businesses and startups with policymakers through thought leadership and forums to explore the role of technology and trade policies and programs in fostering resilience and inclusive growth.

Her full bio can be found below.

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Hua C. Wang
Executive Director, Global Innovation Forum

Hua C. Wang is Executive Director for Global Innovation Forum (GIF) at the National Foreign Trade Council Foundation. NFTC Foundation’s mission is to inspire, promote, encourage and facilitate international trade and investment in order to enhance economic growth and job creation throughout the world.

As GIF’s Executive Director, Hua engages an international network of small, minority and women-led businesses, nonprofit leaders and government officials to improve the trade and digital policy landscapes. She oversees the development and execution of GIF’s strategy to facilitate more inclusive access to the global marketplace. She amplifies the voice of innovators and entrepreneurs in public policy discussions domestically and with international organizations including the World Trade Organization and the Asia-Pacific Economic Cooperation Forum.

Hua previously led a top technology accelerator in Alabama with the 15 startups collectively raising $20 million in funding and generating $11 million in revenue. She also founded SmartBridge Health, a cancer telemedicine startup, during which time she served an entrepreneur in residence at Start-Up Chile, the Malaysian Global Innovation & Creativity Centre and the Washington, DC-based Halcyon Incubator.

Prior to entrepreneurship, Hua worked as a private equity attorney at Proskauer and K&L Gates, in-house counsel at Cisco Systems and a global scholar at the Kauffman Foundation.

After graduating from Duke University, Hua worked as an investment banking analyst at Lehman Brothers and a healthcare strategy consultant at Accenture. She is also a graduate of Northwestern University’s Pritzker School of Law.

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Government Report Confirms U.S. Business Bears the Cost of Tariffs

Posted on by Veronica Berkshire

WASHINGTON D.C. – National Foreign Trade Council (NFTC) Vice President for Global Trade Policy Tiffany Smith issued the following statement after the USITC today released its report on the effects of Section 232 and 301 tariffs:

“The U.S. Government today confirmed what the business community has been screaming from the rooftops for years – it is U.S. businesses, and ultimately U.S. consumers – who have borne the full cost of 232 and 301 tariffs.

“The report specifically mentions that import prices increased toe-to-toe with tariffs – an increase in prices of about 1 percent for each 1 percent increase in tariffs. At a time when American families and businesses are struggling to keep up with inflation, it is time for the Biden Administration to lift these tariffs and bring about some relief when it is most desperately needed.”

The NFTC submitted comments as part of the Tariff Reform Coalition for this investigation last year. You can find them here.

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About the NFTC
The National Foreign Trade Council (NFTC) is the premier business association advancing trade and tax 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.

NFTC Foundation to Honor Senators Coons, Young and OECD’s Perez-Navarro

Posted on by Veronica Berkshire

Washington D.C. – The National Foreign Trade Council (NFTC) Foundation announced today that it will honor Senators Chris Coons and Todd Young, and Ms. Grace Perez-Navarro at its annual World Trade Dinner and Awards Ceremony on March 22.

This year’s World Trade Award honoree is Senator Chris Coons (D-DE) who serves on several committees crucial to U.S. trade policy, including Appropriations, Foreign Relations and Small Business & Entrepreneurship. The award recognizes his career-long support of free, rules-based trade.

“We look forward to recognizing Senator Coons’ leadership in support of an ambitious trade agenda that helps American business and workers succeed in the global economy,” said NFTC President Jake Colvin. “From his push to write new rules in the Indo-Pacific to his support of global trade secrets to his legislation to kick-start negotiations with the United Kingdom, he is helping shape the future of commercially-meaningful trade policies.”

The NFTC Foundation will honor Senator Todd Young (R-IN) with the Trade Leadership for the Digital Age Award, for his work on a range of proposals to enhance digital trade.

“Senator Young has been a strong advocate for the importance of U.S. leadership on digital trade policy,” said Tiffany Smith, NFTC Vice President for Global Trade Policy. “We appreciate Senator Young’s efforts to put digital trade at the forefront of U.S. trade policy and call for the U.S. to negotiate strong, enforceable agreements with our partners around the world.”

This year’s International Tax Award honoree is Ms. Grace Perez-Navarro, Director of the OECD’s Centre for Tax Policy and Administration, who is retiring from her role after a long career at the organization.

“Grace has enjoyed a remarkable career in international tax defined by her vast technical expertise. Over her long career in this space – which began at the IRS – she has shown exemplary leadership, especially in her work on OECD efforts to create certainty for both businesses and countries in the global tax system,” said Anne Gordon, NFTC Vice President for International Tax Policy. “As she nears her retirement, we are happy that Grace will be able to join us to highlight the importance of continued support for this process.”

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 and tax 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.