Category: Press Releases and Statements

NFTC Urges Congress to Protect American Trademarks In Cuba

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WASHINGTON DC– Today, Bill Reinsch, president of the National Foreign Trade Council, urged the Senate Judiciary Committee to repeal “section 211,” a law that threatens thousands of U.S. trademarks currently registered in Cuba.

“NFTC’s 300 member companies support full repeal of section 211 as embodied in
S. 2002, the U.S. Cuba Trademark Protection Act. Quite simply, it’s the only way to ensure compliance with all U.S. trade and treaty obligations and protect the interests of the more than 400 U.S. companies currently holding 5,000 trademarks in Cuba,” remarked Reinsch.

Reinsch was one of several experts asked to testify before the Senate Judiciary Committee on the issue of section 211 of the 1999 Omnibus Appropriations Act. The law allows for discriminatory treatment of certain Cuban trademarks by prohibiting their renewal and by denying their holders access to legal redress in U.S. courts. 

The WTO has ruled that section 211 violates TRIPS, the global intellectual property protection treaty, and has given Congress until the end of 2004 to bring the U.S. back into compliance. 
Because section 211 is not consistent with long-standing U.S. intellectual-property protection obligations, the 5,000 American trademarks currently registered in Cuba are in jeopardy of infringement and counterfeiting.

“As we saw in South Africa, recovering the rights to trademarks necessitates lengthy and expensive litigation.  The U.S. can avoid a repeat scenario in Cuba by maintaining consistent and predictable intellectual property relations. Step one in this maintenance must be full repeal of section 211,” continued Reinsch.

Despite political hostilities spanning four decades, both the U.S. and Cuba, in a rare act of cooperation, have respected each other’s intellectual property rights by honoring trademarks for nearly 75 years. 

The National Foreign Trade Council 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 300 member companies through its offices in Washington and New York.

NFTC and USA*Engage Cite U.S. Supreme Court Decision To More Narrowly Define Alien Tort Provision as Important Step In Curbing Erroneous Lawsuits

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Washington DC – With its unanimous decision to reverse the lower court ruling in Jose Francisco Sosa v. Humberto Alvarez-Machain, et al., the U.S. Supreme Court has taken an important step in narrowing the scope of the Alien Tort Statute of the Judiciary Act of 1789 (ATS), according to officials with the National Foreign Trade Council and USA*Engage.  The opinion particularly warned courts in the future to be “wary” of the foreign relations implications of using the ATS to impede the “discretion of the Legislative and Executive Branches in managing foreign affairs.”

“We welcome the Court’s ruling in the Sosa case, which more closely limits the use of the ATS – a statute that has been misused more and more often over the last decade,” said Bill Reinsch, President of the National Foreign Trade Council and Co-Chairman of USA*Engage.  “Particularly distressing has been the use of the ATS in a growing number of cases against multinational corporations that do business around the world.  While the Sosa case did not involve American business, we believe the Court’s opinion clearly indicates that the ATS should not be used to institute foreign policy in American courts. The decision is an important first step in defining the true meaning and intent of the centuries-old Alien Tort Provision.  In the future, lower courts must take this narrower view in cases brought using the ATS.” 

Citing an influx of unwarranted lawsuits brought in American courts against U.S. and international companies over the last decade which misinterpret the ATS, the National Foreign Trade Council, USA*Engage and several additional business organizations filed an amicus brief at the beginning of this year that was accepted in the Sosa case.

“We are gratified that the Supreme Court made clear the ATS is jurisdictional in nature; it has ‘raised the bar’ significantly in limiting which cases can be brought under the statute.  With the tremendous growth in lawsuits brought to seek redress from corporations for the wrongs of foreign governments, the Court’s stricter approach to interpreting the law is prudent.  Distorting the American legal system by using the ATS helps no one – it strains U.S. bilateral relations, discourages much needed U.S. foreign direct investment in developing countries and actually impedes the goals of those filing the lawsuits.  While additional judicial interpretation will be needed to address the vagaries of the ATS that the Sosa opinion did not address, the opinion sets a vital precedent from which U.S. Courts can draw when interpreting this often-misused statute.”

The National Foreign Trade Council 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 300 member companies through its offices in Washington and New York.

USA*ENGAGE is a coalition of more than 670 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.  For more information on USA*ENGAGE and the harmful effects of unilateral trade sanctions, visit the USA*ENGAGE web site at www.usaengage.org

Visa Backlog Costs U.S. Exporters More than $30 Billion Since 2002, New Study Finds

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Business Groups Say Current Visa Delays
Severely Damage U.S. Companies, Foreign Policy

Washington, DC – Persistent problems in government handling of visas for foreign business travelers have cost U.S. exporters more than $30 billion in revenue and indirect costs since July 2002, according to a study released today by eight U.S. international business groups. The study surveyed a diverse group of small, medium and large companies from across the spectrum of U.S. industries, including technology, health care, pharmaceuticals, retail, energy, automobile, publishing, engineering/construction, airlines and financial institutions. The survey findings indicate that, though a wide range of U.S. businesses have been financially affected by visa backlogs, small to medium-sized exporters experience disproportionately severe losses.

“The effects of losing over $30 billion throughout our economy as a result of inefficient management of the visa processing system are staggering,” said Bill Reinsch, President of the National Foreign Trade Council. “Our companies have expressed growing frustration to government officials and Congress for nearly two years over the broken business visa system, to no avail. Now that we have measured the costs, the results are clear: the U.S. cannot continue on this course. When legitimate foreign business executives and vital international customers cannot enter the U.S. to conduct normal business, it is our companies, our workers, our economy and our international relations that pay the price.”

The survey data was gathered and analyzed by The Santangelo Group, an independent research firm, on behalf of the Aerospace Industries Association (AIA), the American Council on International Personnel (ACIP), the Association for Manufacturing and Technology (AMT), the Coalition for Employment Through Exports (CEE), the National Foreign Trade Council (NFTC), the US-China Business Council (USCBC), the U.S.-Russia Business Council (USRBC) and the U.S.-Vietnam Trade Council (USVTC).

Companies responding to the survey enumerated the financial impact of the visa backlog in two categories: revenue loss and indirect expenses. Statistical analysis indicates that the impact on all U.S. exporters would total more than $30 billion.

Of the companies sampled:

  • 73% currently experience, or have recently experienced, problems in the processing of business travel visas (including unexpected delays and arbitrary denials)
  • 60% reported they had suffered a “material impact” from business travel visa processing delays, including lost sales, increased costs, need to relocate people or functions offshore, etc.
  • 51% report that the visa process is worse today than it was one year ago

The survey concluded that the financial impact of visa delays hits medium-sized companies the hardest, directly contributing to 54% of total revenue losses and 65% of total indirect costs.

“While tighter visa restrictions were put in place with the best of intentions, the restrictions’ negative impact on both our economy and our trade deficit cannot be ignored,” said Ed Rice, President of the Coalition for Employment through Exports. “In fact, our report shows that the losses resulting from visa delays go well beyond lost revenues, with the unexplained and arbitrary denials escalating to cost U.S. companies much more. Key contracts and projects will go elsewhere; U.S. companies will increasingly move research and other facilities overseas; and, perhaps most troubling for the American entrepreneur, U.S. small businesses will pull back from international business development for fear that visa red tape will pose unmanageable obstacles.”

RECOMMENDATIONS

  • The goal for visa processing should be 48 hours with an outside limit of 30 days;
  • Consular posts should provide greater transparency to U.S. companies;
  • A “Gold Card” program would facilitate visa applications and avoid problems and redundancies before they occur;
  • Continued integration of government databases is essential;
  • Multiple-entry, longer duration visas would lessen consular workloads;
  • Consular posts should allow interviews to be scheduled over the Internet;
  • Congress should exercise its oversight authority to ensure improvements in consular services.

“There are ways to make the visa system more efficient and transparent without compromising our need for a secure America. Let’s provide a level playing field for U.S. companies to compete, just as we have before. To remain competitive in the global marketplace, we cannot afford more losses due to a visa system that is overwhelmed,” concluded Lynn Shotwell, Legal Counsel and Director of Government Relations, American Council on International Personnel.

A full copy of the visa survey is available at http://www.nftc.org/default/visasurveyresults%20final.pdf and to view the “Recommendations for Ameliorating Impact of Visa Delays” go to http://www.nftc.org/default/visasurveyrecommendations%20604.pdf

 

The American Council on International Personnel, Inc. (www.acip.com) is a leading not-for-profit professional association dedicated to facilitating the international movement of personnel. Founded in 1972, ACIP is committed to maintaining its position as the preeminent voice on issues affecting the mobility of highly educated professionals across international borders for its over 250 corporate and institutional members.

 

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 300 member companies through its offices in Washington and New York.

The US-China Business Council is the principal organization of US corporations engaged in business relations with the People’s Republic of China. Founded in 1973, the Council serves several hundred leading US companies from its Washington, DC headquarters and field offices in Beijing and Shanghai.

The U.S.-Russia Business Council (USRBC) is a Washington-based trade association that represents the interests of 300 member companies operating in the Russian market. The Council’s mission is to expand and enhance the U.S.-Russian commercial relationship. Guided by member interests, the Council promotes an economic environment in which businesses can succeed in a challenging Russian market. Through a range of activities, the Council contributes to the stability and development of a free market in Russia and supports Russia’s integration into the global economy. For more information, please visit www.usrbc.org.

The Santangelo Group is an international business and economic development consulting firm based in Washington, DC, comprised of former U.S. government officials and Fortune 500 executives. More information about the firm is available at www.SantangeloGroup.com.

Visa Backlog Costs U.S. Exporters More than $30 Billion Since 2002, New Study Finds

Posted on by dcadmin

Business Groups Say Current Visa Delays
Severely Damage U.S. Companies, Foreign Policy

Washington, DC – Persistent problems in government handling of visas for foreign business travelers have cost U.S. exporters more than $30 billion in revenue and indirect costs since July 2002, according to a study released today by eight U.S. international business groups. The study surveyed a diverse group of small, medium and large companies from across the spectrum of U.S. industries, including technology, health care, pharmaceuticals, retail, energy, automobile, publishing, engineering/construction, airlines and financial institutions. The survey findings indicate that, though a wide range of U.S. businesses have been financially affected by visa backlogs, small to medium-sized exporters experience disproportionately severe losses.

“The effects of losing over $30 billion throughout our economy as a result of inefficient management of the visa processing system are staggering,” said Bill Reinsch, President of the National Foreign Trade Council.  “Our companies have expressed growing frustration to government officials and Congress for nearly two years over the broken business visa system, to no avail.  Now that we have measured the costs, the results are clear:  the U.S. cannot continue on this course.  When legitimate foreign business executives and vital international customers cannot enter the U.S. to conduct normal business, it is our companies, our workers, our economy and our international relations that pay the price.”

The survey data was gathered and analyzed by The Santangelo Group, an independent research firm, on behalf of the Aerospace Industries Association (AIA), the American Council on International Personnel (ACIP), the Association for Manufacturing and Technology (AMT), the Coalition for Employment Through Exports (CEE), the National Foreign Trade Council (NFTC), the US-China Business Council (USCBC), the U.S.-Russia Business Council (USRBC) and the U.S.-Vietnam Trade Council (USVTC).

Companies responding to the survey enumerated the financial impact of the visa backlog in two categories: revenue loss and indirect expenses.  Statistical analysis indicates that the impact on all U.S. exporters would total more than $30 billion.

Of the companies sampled:

  • 73% currently experience, or have recently experienced, problems in the processing of business travel visas (including unexpected delays and arbitrary denials)
  • 60% reported they had suffered a “material impact” from business travel visa processing delays, including lost sales, increased costs, need to relocate people or functions offshore, etc.
  • 51% report that the visa process is worse today than it was one year ago

The survey concluded that the financial impact of visa delays hits medium-sized companies the hardest, directly contributing to 54% of total revenue losses and 65% of total indirect costs.

“While tighter visa restrictions were put in place with the best of intentions, the restrictions’ negative impact on both our economy and our trade deficit cannot be ignored,” said Ed Rice, President of the Coalition for Employment through Exports.  “In fact, our report shows that the losses resulting from visa delays go well beyond lost revenues, with the unexplained and arbitrary denials escalating to cost U.S. companies much more.  Key contracts and projects will go elsewhere; U.S. companies will increasingly move research and other facilities overseas; and, perhaps most troubling for the American entrepreneur, U.S. small businesses will pull back from international business development for fear that visa red tape will pose unmanageable obstacles.”

RECOMMENDATIONS

  • The goal for visa processing should be 48 hours with an outside limit of 30 days;
  • Consular posts should provide greater transparency to U.S. companies;
  • A “Gold Card” program would facilitate visa applications and avoid problems and redundancies before they occur;
  • Continued integration of government databases is essential;
  • Multiple-entry, longer duration visas would lessen consular workloads;
  • Consular posts should allow interviews to be scheduled over the Internet;
  • Congress should exercise its oversight authority to ensure improvements in consular services.

“There are ways to make the visa system more efficient and transparent without compromising our need for a secure America.  Let’s provide a level playing field for U.S. companies to compete, just as we have before.  To remain competitive in the global marketplace, we cannot afford more losses due to a visa system that is overwhelmed,” concluded Lynn Shotwell, Legal Counsel and Director of Government Relations, American Council on International Personnel.

A full copy of the visa survey is available at http://www.nftc.org/default/visasurveyresults%20final.pdf and to view the “Recommendations for Ameliorating Impact of Visa Delays” go to http://www.nftc.org/default/visasurveyrecommendations%20604.pdf 

 

The American Council on International Personnel, Inc. (www.acip.com) is a leading not-for-profit professional association dedicated to facilitating the international movement of personnel.  Founded in 1972, ACIP is committed to maintaining its position as the preeminent voice on issues affecting the mobility of highly educated professionals across international borders for its over 250 corporate and institutional members.

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 300 member companies through its offices in Washington and New York.

The US-China Business Council is the principal organization of US corporations engaged in business relations with the People’s Republic of China.  Founded in 1973, the Council serves several hundred leading US companies from its Washington, DC headquarters and field offices in Beijing and Shanghai.

The U.S.-Russia Business Council (USRBC) is a Washington-based trade association that represents the interests of 300 member companies operating in the Russian market.  The Council’s mission is to expand and enhance the U.S.-Russian commercial relationship.  Guided by member interests, the Council promotes an economic environment in which businesses can succeed in a challenging Russian market.  Through a range of activities, the Council contributes to the stability and development of a free market in Russia and supports Russia’s integration into the global economy.  For more information, please visit www.usrbc.org.

The Santangelo Group is an international business and economic development consulting firm based in Washington, DC, comprised of former U.S. government officials and Fortune 500 executives.  More information about the firm is available at www.SantangeloGroup.com. 

NFTC Praises Newly-Signed U.S.-Central America FTA

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Washington, DC – NFTC officials today applauded the signing of the U.S.-Central America Free Trade Agreement, calling it an historic building block in strengthening the economic and trade relationship between the United States and Central America.  The CAFTA will also help raise living standards and strengthen democracy in a region of strategic proximity and importance to the U.S.

“The U.S.-Central America FTA will open up significant economic opportunities and boost economic  growth in all of our countries,” said Mary Irace, Vice President of the National Foreign Trade Council.  “The high standards set by this agreement will eliminate barriers to trade across-the-board, strengthen close economic and trade ties between the United States and its Central American neighbors, and serve as an impetus for a high-standard Free Trade Area of the Americas.”

Provisions of the new FTA include strong intellectual property rights protection and industrial market access.  Additionally, the innovative capacity-building chapter will boost Central America’s ability to implement its commitments and benefit fully under the FTA. 

With President Bush announcing intentions in 2002 to pursue an FTA with Central America, talks began in earnest in January 2003.  U.S. exports to the Central American governments of El Salvador, Guatemala, Honduras and Nicaragua were valued at $9 billion in 2001, almost equal to U.S. exports to Russia, India and Indonesia combined.  In addition, 78% of those exporters to Central America are small businesses.

“With the U.S.-Central America FTA, U.S. small and large businesses, workers, farmers and consumers stand to gain from greater trade with Central America. The same is true for our Central American neighbors.  This is a fine example of sustaining regional and economic stability through more transparent, open trade relations.  We hope the momentum from today’s signing will aide in the swift, thorough completion of future FTA negotiations,” stated Irace.