Remarks of The Honorable John D. Negroponte, U.S. Ambassador to the UN, Keynote Speaker, NFTC 2003 World Trade Dinner

Remarks of

The Honorable John D. Negroponte

U.S. Ambassador to the United Nations

Keynote Speaker

at the National Foreign Trade Council

2003 World Trade Dinner

November 10, 2003

 

 

Thank you very much for that kind introduction.

 

I’m delighted to be here again at the National Foreign Trade Council’s annual dinner—an event that has become a welcome and elegant New York tradition.  Diana and I were here as guests two years ago, and I’m honored that you have asked me to address you this evening.

 

Before proceeding to the heart of my remarks,  I’d like to acknowledge the NFTC leadership, including its board of directors; its chairman, Michael Jordan; its president, Bill Reinsch and NFTC’s hardworking staff including my former colleague, Anne Alonzo.  Anne worked with me in Mexico city to help ensure the successful negotiation of NAFTA while I served as U.S. Ambassador to Mexico.  

 

For almost a century, of course, American business has used the NFTC to champion global commerce and open foreign markets to American trade and investment.  

 

Your fundamental belief – that America’s values and interests require active involvement in world affairs by an engaged private sector—has sustained you and the American economy through some stiff challenges and tough times.  The fact that you have seen more ups than downs proves that you have been, and remain, 100% right. 

 

There is no better, or even plausible, alternative to American business doing its utmost to shape an increasingly globalized world according to the principles of a free marketplace.

 

This is good for the United States in more ways than I can enumerate.  It is good for American investors; it is good for American workers; and it is good for our broader national ability to promote peace, security, and stability—in a word, democracy—abroad.

 

 As we seek to advance the full range of U.S. interests at the UN, therefore, I want to recognize the substantial contributions U.S. business and the National Foreign Trade Council make to America’s standing in the world every day of the week and every week of the year.

 

A cornerstone of U.S. involvement in the UN is promoting fundamental freedoms, and one of the most basic catalysts of economic growth and development in the developing world is trade liberalization—allowing free markets to work to create jobs and opportunity for all elements of society.  That is a cardinal principle of the president’s millennium challenge account, which will enhance core development assistance fifty percent by fiscal year 2006. It is also the foundation of what the NFTC has advocated for almost 90 years.

 

In this regard, I thank you for your leadership of business coalitions supporting free trade agreements between the U.S. and Morocco and the Southern Africa Customs Union. These FTAs are a priority of the administration.  Business support is vital to their successful negotiation.

 

Here let me note that Morocco’s Ambassador to the United States, His Excellency Aziz Mekouar, is with us tonight.  Mr. Ambassador, you deserve a special round of applause for your leadership in the U.S.-Morocco free trade agreement negotiations.

 

The NFTC itself deserves high praise for its important work on the WTO Doha Development Agenda. Your leadership in pushing all nations to seek bold outcomes will increase economic opportunity everywhere, especially in parts of the world that need it most.

 

This is enormously important to us at the UN, where we have worked hard to build a strong partnership to fight famine.  As I noted in a speech before the UN Economic and Social Council in Geneva last June, over 800 million people are malnourished around the globe.  Nearly 80% of these hungry souls are women and children.  This is intolerable.  Answers have to be found, and found quickly.

 

The administration believes that increased agricultural productivity is a critical component of fighting poverty and hunger. As a consequence, we took action last year when we rolled out the “initiative to end hunger in Africa,” augmenting funding for African agriculture by 25%. 

 

The U.S. is pleased that the African Union Heads of State and Government are addressing the critical agricultural and rural development sectors.  Our commitment to implementing the initiative to end hunger in Africa rests on the recognition that success requires sustained investments in agriculture-based strategies, programs, and policies, in conjunction with improvements in health, education, infrastructure, environment, and public policy management.

 

Science and technology, in particular, offer tremendous potential for increasing productivity and income for the poor without further degradation of the environment.  Biotechnology, for example, is capable of boosting the nutritional value of foods, increasing crop yields, reducing pesticide use, making crops disease and drought resistant, generating income in rural areas, and even vaccinating infants against diphtheria, tetanus and measles.

 

Sadly, some in the world use campaigns of misinformation and fear in an attempt to squelch this promising technology’s usage.  In our view, decisions about food safety should be based on scientific fact, not political conjecture or public hysteria.

 

I therefore applaud the NFTC’s leadership in bringing together business groups concerned about the growing use of non-science based risk regulations as disguised protectionist trade barriers. Your efforts to make sure that sound science remains the benchmark for international trade regulation are enormously helpful in keeping hope alive for the world’s malnourished millions.

 

Another important feature of the president’s Millennium Challenge Account is its emphasis on transparency in government and fighting corruption.  I know NFTC shares his concern, so I am pleased to highlight for you last month’s adoption by the General Assembly of the United Nations Convention Against Corruption.

 

Like other anti-crime treaties before it, the new convention establishes commitments to criminalize certain undesirable and harmful conduct – in this case, corrupt actions such as bribery, embezzlement, and money laundering.  But the convention does not stop there.  It also requires that governments take action in a number of areas – for example in public procurement, public financial management, and in regulating their public officials — that will help prevent corruption from happening in the first place.

 

This is vital not only to the rule of law, but to the fundamental confidence citizens must have for representative government and private enterprise to succeed.

 

Corruption and democracy are incompatible; corruption and economic prosperity are incompatible; and corruption and equal opportunity are incompatible.

 

But our work at the UN and NFTC’s efforts are compatible, and so I am sure we can count on your support for the new convention just as we count on you to keep making the case for free trade and scientific and technological innovation.

 

I’d like to conclude my remarks this evening by noting that even as we face critical challenges in places like Iraq, we must always remember that real peace, real freedom, and real opportunity are ultimately created through commerce, once the guns have been silenced. 

 

Men and women living ordinary lives do the most extraordinary things.  Our soldiers in Iraq know this.  They are making incalculable sacrifices so that Iraqis—and all the citizens of the Middle East—can join the rest of us who rejoice in the blessings of an ordinary life, giving them the chance to rebuild their destroyed institutions and fix their broken economy.

 

This is where the NFTC’s policies and initiatives come in.

 

 By helping develop a world built on free market principles, you are doing nothing less than helping develop a world built on freedom itself—and a free world will be a peaceful, well-fed, and well-educated world as well.

 

Again, I appreciate the opportunity to speak here this evening, and I am grateful for your support of what America is trying to accomplish at the United Nations.

 

Thank you very much.

 

Testimony of Bill Reinsch, President, NFTC, Before the U.S. Trade Policy Staff Committee on a U.S.-Bahrain Free Trade Agreement

Washington, DC – In testimony today before the U.S. Trade Policy Staff Committee on a U.S.-Bahrain Free Trade Agreement, Bill Reinsch, President of the National Foreign Trade Council (NFTC) urged the United States to begin negotiations on a U.S.-Bahrain Free Trade Agreement. “In strengthening U.S. ties with a key strategic ally committed to trade liberalization and economic reform, a U.S.-Bahrain FTA will demonstrate to other countries in the region the importance and benefits of free and open rules based trade,” Reinsch stated.

Reinsch testified on behalf of the NFTC, the Business Council for International Understanding (BCIU), and the National U.S. – Arab Chamber of Commerce (NUSACC), organizers of the U.S.-Bahrain FTA Coalition, a diverse group of U.S. corporations and associations supporting a bilateral free trade agreement between the two nations.

In his testimony, Reinsch noted that Bahrain is already a reliable market for U.S. goods and services. Last year while U.S. imports from Bahrain totaled $395 million, U.S. business exported almost $420 million. American companies are exporting aircraft, machinery, vehicles, pharmaceuticals products, toys, sporting equipment and other products. U.S. business is also participating in the expansion of the aluminum smelter and many of the other oil related upstream and downstream industries being developed.

 

“Bahrain is a dependable and longstanding U.S. business partner in an unstable region. It has worked hard to diversify its economy; it has invested substantially in transportation and communications infrastructure, and already serves as an important hub for U.S. business in the Gulf region,” Reinsch continued. “As home to the U.S. Navy’s 5th Fleet, there is a strong foundation of U.S.-Bahraini relationships and familiarity with U.S. products, services and technology, as well as the U.S. educational and healthcare system.”

In the last two years, Bahrain has embarked on an historic program of democratic reform, instituting a constitutional monarchy with an elected lower chamber of parliament, undertaking the creation of an independent judiciary, and granting women the right to vote and stand for office.

“A free trade agreement with the United States will serve to increase economic opportunity in Bahrain which will in turn encourage further reform,” Reinsch stated. “Bahrain‘s commercial and economic reforms and market opening measures as reflected in a high quality FTA are likely to encourage neighboring countries to pursue the same path.”

Creating the FTA with Bahrain builds on President Bush’s proposal for an overall Middle East Free Trade Area by 2013. Currently, the U.S. has a free trade agreement with Israel and Jordan, and is well under way in negotiating the proposed U.S.-Morocco Free Trade Agreement. The NFTC serves as the co-Secretariat of the U.S.-Morocco FTA Coalition and has been a major champion of concluding a U.S.-Morocco FTA by the end of the year.

 


 

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

 

National Foreign Trade Council Honors ExxonMobil CEO for Trade Leadership

NFTC award recognizes Lee Raymond’s leadership in advancing open trade and investment

 

New York, NY – Continuing a proud tradition, the National Foreign Trade Council (NFTC) today announced its “World Trade Award” winner, Lee R. Raymond, Chairman and CEO of Exxon Mobil Corporation.  Raymond will receive the award at the NFTC’s annual World Trade Dinner on November 10, 2003, in New York City.

 

“With more than 40 years as a top business executive for a global commercial leader, ExxonMobil’s Lee Raymond exemplifies the spirit of the NFTC World Trade Award.  His tireless efforts to advance an open and rules based world trading system make him the natural choice for such an honor.  The NFTC is proud of its over 60-year association with the Exxon Mobil Corporation, and we are honored to give our World Trade Award to the company’s renowned leader,” said Michael Jordan, Chairman of the NFTC and Chairman & CEO of EDS.

 

This year’s NFTC World Trade Award Committee, chaired by Rick Fuest of Active International, chose Mr. Raymond for the award based on his leadership in advancing global commerce.  In addition, all nominees for the award must be respected in the community for building consensus and promoting the benefits of open trade and investment.  Dating from 1937, NFTC’s World Trade Award was established by the Dollar Family of San Francisco in memory of Captain Robert Dollar, pioneer in American shipping and world trade and a charter member of the National Foreign Trade Council. 

 

The Award has been given to 47 Americans, including Government officials, industrialists, bankers, and shipping, publishing and association leaders.  Last year, U.S. Secretary of Commerce Don Evans accepted the award.  Other past winners include Cordell Hull, Secretary of State, awarded in 1938; George Schultz (Bechtel), awarded in 1974; David Rockefeller (Chase Manhattan Bank), awarded in 1964; and William E. Brock (United States Trade Representative), awarded in 1982.

 

Lee Raymond continues the tradition of esteemed World Trade Award nominees with a storied career in global business.  Before the merger of Exxon and Mobil on November 30, 1999, Mr. Raymond was chairman and chief executive officer of Exxon Corporation.  A Ph.D. in chemical engineering, Mr. Raymond joined Exxon in 1963 and has served in various capacities for the corporation in his four decades there.

 

Mr. Raymond will accept the NFTC award on November 10 alongside United States Ambassador to the U.N. John D. Negroponte, the keynote speaker at the World Trade Dinner.

 


The National Foreign Trade Council is a leading business organization advocating a rules-based world economy. Founded in 1914 by a group of American companies that supported an open world trading system, the NFTC now serves more than 500 member companies through its offices in Washington and New York.

 

Testimony of Bill Reinsch, President, NFTC, Before the U.S. Trade Policy Staff Committee on a U.S.-Bahrain Free Trade Agreement

 

Testimony of Bill Reinsch, President, National Foreign Trade Council

Before the U.S. Trade Policy Staff Committee on a

 U.S.-Bahrain Free Trade Agreement

November 5, 2003

 

Mr. Chairman and members of the Committee, thank you for the opportunity to testify today on the proposed United States-Bahrain Free Trade Agreement. I am Bill Reinsch, President of the National Foreign Trade Council (NFTC). The NFTC’s members are leading U.S. companies actively trading and investing around the world. We are also a founding member, along with the Business Council for International Understanding (BCIU), and the National U.S. – Arab Chamber of Commerce (NUSACC) of the U.S.-Bahrain FTA Coalition, a diverse group of U.S. corporations and associations supporting a bilateral free trade agreement between the two nations.

 

For almost ninety years, the National Foreign Trade Council has worked to promote an open rules based world trading system.  Our mission is to assure that our member companies have the opportunity to pursue active commercial engagement that creates economic opportunity both at home and in the foreign markets they enter.

 

I am here today to testify on behalf of the U.S.-Bahrain FTA Coalition, which is being formed to support the rapid negotiation and passage of a commercially meaningful U.S.–Bahrain Free Trade Agreement (FTA). 

 

We believe an FTA with Bahrain is in the strong interest of the United States.  It provides the opportunity to eliminate bilateral tariff and non-tariff barriers, boost bilateral and regional trade flows, and stimulate economic growth and prosperity.  Whereas U.S. business competes and thrives in markets with economic, regulatory and political stability, a U.S. – Bahrain FTA offers expanded potential for U.S. business and will enhance stability in Bahrain and ultimately in the region as a whole.

 

In strengthening U.S. ties with a key strategic ally committed to trade liberalization and economic reform, a U.S.-Bahrain FTA will demonstrate to other countries in the region the importance and benefits of free and open rules based trade.

 

Finally, pursuing a bilateral FTA strengthens our trade relationship in the context of our overall friendship and alliance with Bahrain.  It fosters shared values and recognizes Bahrain’s strategic contributions to overall U.S. policy.

 

I would like to elaborate briefly on these points.

 

 

 

Increased Bilateral and Regional trade

 

Bahrain is already a reliable market for U.S. goods and services.  Last year while U.S. imports from Bahrain totaled $395 million, U.S. business exported almost $420 million.  American companies are exporting aircraft, machinery, vehicles, pharmaceuticals products, toys, sporting equipment and other products.  U.S. business is also participating in the expansion of the aluminum smelter and many of the other oil related upstream and downstream industries being developed.

 

We see the potential for a high quality FTA to increase U.S. sales by:

 

         eliminating tariffs,

         improving customs and other trade facilitation procedures,

         assuring that product and safety standards are based on sound science that does not create unjustifiable barriers to trade,

         locking in intellectual property protection and enforcement to deter counterfeiting and piracy,

         undertaking a comprehensive approach to increased access to services markets that improves transparency and predictability in regulatory procedures and adequately addresses discriminatory and other barriers,

         building on the existing U.S.Bahrain bilateral investment treaty to increase investor protection and increase opportunities for U.S. investment,

         taking necessary steps that encourage e-commerce, and

         increasing transparency and predictability in and access to Bahraini government procurement.

 

These and other elements of a high quality FTA will increase opportunities for U.S. manufacturing, financial services, distribution, construction and engineering, health, education, tourism and environmental services sectors.  As the country diversifies its economy away from oil, the financial services sector has already surpassed oil in percentage contribution to GDP.  There are strong opportunities for American financial services and insurance companies in Bahrain. 

 

Other major projects in tourism, healthcare and education are well suited for U.S. business participation.  High value U.S. food and beverage products should also see increasing opportunities in Bahrain, especially as the tourism and restaurant base grows. A high quality FTA will improve the overall investment climate in Bahrain and provide another partner in increasing free trade in the region

 

Supports Reform by a Proven Ally

 

Bahrain is a dependable and longstanding U.S. business partner in an unstable region.  It has worked hard to diversify its economy; it has invested substantially in transportation and communications infrastructure, and already serves as an important hub for U.S. business in the Gulf region.  As home to the U.S. Navy’s 5th Fleet, there is a strong foundation of U.S.-Bahraini relationships and familiarity with U.S. products, services and technology, as well as the U.S. educational and healthcare system.

 

Since the signing of the bilateral Trade and Investment Framework Agreement with the U.S. in 2002, the country has demonstrated its commitment to reform by upgrading its laws protecting intellectual property, agreeing to treat agricultural biotechnology fairly, and by taking steps to become party to the WIPO Internet Treaty. Bahrain is making valuable contributions to the WTO process, by offering to improve its existing services commitments and has joined the WTO Information Technology Agreement.

 

In the last two years, Bahrain has embarked on an historic program of democratic reform, instituting a constitutional monarchy with an elected lower chamber of parliament, undertaking the creation of an independent judiciary, and granting women the right to vote and stand for office.

 

A free trade agreement with the United States will serve to increase economic opportunity in Bahrain which will in turn encourage further reform.

 

Strategic Link in the MEFTA Strategy

 

The member companies of the NFTC and our colleague associations supporting a free trade agreement with Bahrain have been deeply involved in the negotiation of the U.S.Morocco FTA over the past year and support the Administration’s strategy in moving toward a Middle East Free Trade Area (MEFTA).  Bahrain is an important and logical next step in that strategy. Indeed Bahrain offers the best prospect for a high quality agreement in the Gulf region and will set a standard by which other nations seeking an FTA with the United States will be measured.

 

As the U.S. works with peaceful countries in the region to accede to the WTO and offers expanded GSP status; assists nations to develop the laws and institutions necessary to open markets through the TIFA process, and negotiates bilateral investment treaties and free trade agreements with eligible regional partners, Bahrain is a good choice, along with Morocco and Jordan, to serve as linchpins in the region.  These nations all have the potential, through their FTAs with the U.S. to increase their leadership in their particular regions of the Middle East.  Bahrain’s commercial and economic reforms and market opening measures as reflected in a high quality FTA are likely to encourage neighboring countries to pursue the same path.

 

The MEFTA strategy is a brick by brick approach, constructively engaging with all willing nations in the Middle East, regardless of their level of development, and it makes sense in this context to engage with Bahrain, as it does with other nations in the future, such as Egypt.

 

Maintains and Enhances momentum in trade liberalization

 

In Cancun we experienced a setback in the process of multilateral trade liberalization.  While we maintain confidence and optimism in the negotiations of the WTO Doha Development Agenda, we also strongly support continuing efforts to identify nations and markets with opportunities to support and lock in gains in liberalization that will increase trade and access for U.S. business. Bahrain is such an opportunity. It also sends the strong signal to the world that the U.S. will continue its leadership in trade liberalization, working with nations that share these goals.

 

In conclusion, the NFTC and members of the U.S.-Bahrain FTA Coalition believe that the swift negotiation and completion of a U.S.-Bahrain Free Trade Agreement is in the national interest of the United States.  Thank you for the opportunity to testify today.

 

 

NFTC and Washington Legal Foundation Paper Examines EU Strategy to Legitimize Precaution

Cautions that EU attempt to globally employ the precautionary principle

jeopardizes international trade and development

 

Washington, DC Scattered over numerous forums and obfuscated by public product safety anxiety, a growing attempt to limit trade through the use of technical barriers has largely been overlooked.  However, a white paper authored by the National Foreign Trade Council and published by the Washington Legal Foundation presents compelling evidence of a deliberate strategy to protect ailing EU industries.  The paper, EU Regulations, Standardization and the Precautionary Principle:  The Art of Crafting a Three-Dimensional Trade Strategy That Ignores Sound Science, offers powerful evidence of the EU’s attempt to define and employ the precautionary principle globally.

 

“It’s easy to overlook the long term implications of a negotiation over a specific trade initiative or industry sector.  It would be naive, however, to assume a broader strategy does not exist,” said NFTC President Bill Reinsch.  “This paper details the EU’s attempts to elevate the status of the precautionary principle from a limited WTO exception to a norm of international law.” 

 

A paper released by NFTC in May, Looking Behind the Curtain, presented numerous examples of the EU’s use of precaution to block trade in a wide variety of products ranging from beef to computers.  This most recent work goes a step further and clearly shows how the EU has sought to inject the precautionary principle within:

 

  • The WTO system through creative interpretation of the SPS and TBT Agreements and through obligations assumed under multilateral environmental agreements;
  • International standards through participation in the standards development process;
  • Bilateral and regional free trade and aid agreements. 

Reinsch urged U.S. industries and the various agencies engaged in advocating for free trade to come together in their opposition to these trade-restricting practices.  “If the role of objective science in the WTO agreements is to be preserved, the U.S. must adopt a long-term view as it responds to the EU’s complex challenge.”  He went on to caution against being lulled into a false sense of security by the EU’s apparent slowness in achieving its goal of establishing precaution in international law.  “Changing international law takes time, but that doesn’t mean there isn’t a great deal at risk now.  This is more than a disagreement between two large economies.  The loss of sound science as the benchmark for international trade regulation will have tremendous economic and social consequences for developing countries as well.”

 

For a copy of the NFTC paper, please see the URL below or click on the hyperlinks above http://nftc.org/default/white%20paper/WLFfinaldocumentIII.pdf.

 


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

 

U.S.-Morocco FTA Coalition Lauds Formation of Congressional Morocco Caucus

Praises Progress on U.S.-Morocco FTA Negotiations

Washington, DC – At a reception for Moroccan and U.S. government officials, Members of Congress and U.S. business leaders, the U.S.-Morocco FTA Coalition welcomed the newly-formed Congressional Morocco Caucus as a key player in the process of the U.S.-Morocco FTA negotiations. Led by Congressmen Phil English (R-PA), Lincoln Diaz-Balart (R-FL), Chris John (D-LA) and John Tanner (D-TN), the Congressional Moroccan Caucus formed to continue the “deepening of the economic and strategic relationship between the United States and Morocco.”

 

As Moroccan and U.S. officials this week begin their fourth round of negotiations on the FTA – looking to conclude the negotiations by the end of the year – the work of the new caucus is critical, officials said.

 

“The Congressional Morocco Caucus will prove to be a strong player in deepening and expanding ties between our two countries, including through the completion of a U.S.-Morocco FTA,” said Bill Reinsch, President of the National Foreign Trade Council. Citing Morocco’s longtime commitment to the United States on a wealth of issues, Reinsch applauded the bi-partisan caucus as a clear demonstration of Congress’ commitment to the U.S.-Morocco relationship, and as recognition of the importance of strengthening the U.S. partnership with Morocco on the basis of high-standard trade rules.

 

At today’s reception on Capitol Hill, lawmakers and business leaders heard from U.S. Trade Representative Robert Zoellick, along with U.S. Ambassador to Morocco Margaret Tutweiler, Morocco’s Secretary of State for Foreign Affairs, Minister Fassi Firhri, and Morocco’s Ambassador to the U.S., Aziz Mekouar, on this week’s continuing FTA negotiations and the formation of the Congressional Morocco Caucus.

 

Earlier this year, the Bush Administration announced the beginning of the FTA talks and the goal of completing them by the end of 2003. The U.S. business community through the U.S.-Morocco FTA Coalition has championed the early conclusion of a comprehensive, high-standard FTA with Morocco since the coalition’s formation early this year. Currently, the coalition has more than 70 members.

 

Coalition business co-chairs Laura Lane, of AOL Time Warner, and George Pickart, of CMS Energy, emphasized the importance of the FTA as an avenue to “strengthen business ties with Morocco as part of a continued, strategic relationship with that country and as an important vehicle for furthering the economic reform process underway in Morocco, from agriculture to intellectual property rights protection, to labor and every other area important to promoting economic growth in and trade with Morocco.”

 

Reinsch added that coalition members view Morocco “as a leader in their region in implementing difficult market-based and open trade reforms as a strategic component of spurring economic development,” and he thanked Morocco for its commitment to a strong relationship with America as a key ally.


 

The National Foreign Trade Council is a leading business organization advocating an open, rules-based world economy. Founded in 1914 by a group of American companies that supported an open world trading system, the NFTC now serves 400 member companies through its offices in Washington and New York.

 

The Business Council for International Understanding (BCIU), a U.S. business association founded in 1959 at White House initiative, is dedicated to promoting dialogue and action between the business and government communities for the purpose of expanding international commerce.

Allies Speak Out Against U.S. Litigation

New York – In connection with cases filed against companies that did business in South Africa from 1948-93, two important U.S. allies have taken strong positions against the pending litigation.  Motions to dismiss some of the cases were filed today in the U.S. District Court for the Southern District of New York. 

 

The South African government, in a declaration by Justice Minister Dr. Penuell M. Maduna, filed with U.S. District Judge John E. Sprizzo, stated that these cases interfere with South Africa’s efforts to address issues relating to the legacy of apartheid.  “The South African government is clear in its opposition to these cases being adjudicated,” said Daniel O’Flaherty, Executive Director of the U.S.- South Africa Business Council.  O’Flaherty noted that this is the third such high-level pronouncement by the South African Government on the U.S. litigation: 

 

April 15, 2003 – Address to the South African Parliament by South African President Thabo Mbeki:

“We consider it completely unacceptable that matters that are central to the future of our country should be adjudicated in foreign courts which bear no responsibility for the well-being of our country and the observance of the perspective contained in our constitution of the promotion of national reconciliation.” President Mbeki’s original statement

 

May 22, 2003 – Letter to U.S. Secretary of State Colin Powell from Nkosazana Zuma, South African Minister of Foreign Affairs stating President Mbeki’s position and that: “Through the Truth and Reconciliation process, the issue of reparations for the victims of apartheid is being addressed in terms of our Constitutional obligation.”   Zuma’s letter

 

July 15, 2003 – A ten page “Declaration” to Judge John E. Sprizzo from South African Minister of Justice and Constitutional Development Dr. Penuell M. Maduna stating: “It is the government’s submission that as these proceedings interfere with a foreign sovereign’s efforts to address matters in which it has the predominant interest, such proceedings should be dismissed.” Maduna’s declaration

 

Also on July 15, 2003, the British Government issued a formal Ministerial Statement in Parliament.  In opposing the pending lawsuits the Government stated “South Africa is engaged in an ongoing post-apartheid reconciliation process, the complexities of which should not be under-estimated.  We believe the South African Government is best placed and best capable of dealing with the issue of reparations for crimes under Apartheid.”  The British government also made clear that it views these cases as an improper exercise of jurisdiction by U.S. courts over events occurring wholly outside the United States. British Government statement

 

The plaintiffs’ opposition to the motions to dismiss will be due in September 2003.  Oral argument has been set for early November.

 

 

The U.S.-South Africa Business Council is the leading business organization on trade and investment policy issues concerning South Africa and the SACU region.

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Business Groups Call on President to Repair Current Visa Processing System

Cite Bottleneck in Acquiring Visas that Harms U.S. Business Abroad

Washington, DC – In a letter to President Bush today, 33 business groups urged him to make major changes in the current visa review and application process in order to prevent backlogs and restore the system’s former efficiency. Believing that the current visa system is “broken and needs repair if it is to be both effective and efficient,” the letter called on the President to take steps to streamline the current system “to make it more predictable, timely and transparent.”

The organizations strongly recommended that the President undertake concrete measures to improve the visa review process, including:

Accelerating the conclusion of the bilateral Memorandum of Understanding between the Department of State and the Department of Homeland Security;
Restoring time limits and deadlines to the interagency process of visa review.

“It is time for the White House to step in and take action,” said Bill Reinsch, President of the National Foreign Trade Council. “Meeting after meeting with the agencies involved in visa review has yielded little progress for our associations. We now must rely on the President to initiate immediate changes in what has become over the past year an increasingly inefficient and opaque process that is doing serious damage to the American economy and to America’s image abroad.”

According to the letter, both large and small member companies have grown weary of complaints from overseas customers that doing business with U.S. companies is hardly worth the trouble, due to the overwhelming delays and frustrations in acquiring the proper visas. The business groups concluded: “The simple truth is that our member companies cannot sustain business with overseas customers under these circumstances. That’s bad for American business, bad for American jobs, and bad for U.S. competitiveness in the global market.”

The letter also stated that improving the visa process is the best way to ensure that American business can continue to compete in and benefit from the global marketplace. Full text of the letter follows:

 


 

July 10, 2003

The President
The White House
Washington, DC 20500

Dear Mr. President:

America’s open and free economy has been the engine of our democracy for more than 200 years. The United States has earned a strong position in the global marketplace by supporting the free movement of goods, services, ideas and people across borders. The world we live in today poses significant challenges to this fundamental concept; challenges that, if not addressed properly, could undermine America’s standing in the world for decades to come.

Mr. President, one challenge of our own making is the current process for reviewing and approving visa applications for temporary entry into the United States, and we are writing to request your help in making this process efficient and transparent, so that we might avoid further losses to our economy.

At a time when our member companies increasingly rely on international sales as a key component to growth and stability in the marketplace – sales that support high-paying jobs in the United States – the ability to bring customers, employees from other countries, and other international visitors connected to American companies’ international business activities to and from the United States under a visa process that is predictable, timely and transparent is absolutely critical to our future.

Since July 2002, a growing number of our member companies, large and small, have heard the same message from key customers overseas: it is simply “too hard” to do business with U.S. companies because of the complexities, delays and frustrations inherent in the visa process. The issue extends beyond merely international sales to relationships with overseas business partners, investors and suppliers. The simple truth is that our member companies cannot sustain business with overseas customers under these circumstances. That’s bad for American business, bad for American jobs, and bad for U.S. competitiveness in the global market.

Mr. President, all of our member companies are committed to strengthening America’s national security and we strongly support many of the steps you have taken to strengthen the visa system to achieve that goal. We believe, however, that the visa system is broken and needs urgent repair if it is to be both effective and efficient. Accelerating the conclusion of the bilateral MOU between the Department of State and the Department of Homeland Security would be a positive step in the right direction, as would the restoration of time limits and deadlines to the interagency process. We would appeal to you, Mr. President, to initiate an immediate major review to identify and implement measures to streamline the current system to make it more predictable, timely and transparent. Only in this way will American business, American jobs, and, in turn, the American people continue to benefit from the opportunities the global marketplace offers.

 

Sincerely,

 

 

 

Aerospace Industries Association
AeA (American Electronics Association)
American Business Council of Pakistan
American Chamber of Commerce in China
American Chamber of Commerce in Guangdong, P.R.C.
American Chamber of Commerce in Hong Kong
American Chamber of Commerce in India
American Chamber of Commerce in Japan
American Chamber of Commerce in Korea
American Chamber of Commerce in Taipei
American Chamber of Commerce in Thailand
American Chamber of Commerce in Sri Lanka
American Chamber of Commerce of the Philippines, Inc.
American Malaysian Chamber of Commerce
Association for Manufacturing Technology
Association of American Chambers of Commerce in Latin America
Business Roundtable
California-China Business Council
California Council for International Trade
Coalition for Employment through Exports
Hong Kong-U.S. Business Council
Israel-America Chamber of Commerce & Industry Ltd
National Association of Manufacturers
National Foreign Trade Council
Semiconductor Equipment and Materials International
Semiconductor Industry Association
Telecommunications Industry Association
United States Information Technology Office
U.S.-ASEAN Business Council
U.S. Chamber of Commerce
U.S.-China Business Council
U.S.-Korea Business Council
U.S.-Russia Business Council

 

 


 

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

 

NFTC Calls for Reform of Post 9-11 Visa Review Process

Cites Unnecessary Delays, Confusion that Harm U.S. Business and Interests

Washington, DC – The National Foreign Trade Council today called on Congress and the State Department to review current visa application procedures that were instituted in the wake of the September 11 tragedy. NFTC contends that significant and unnecessary delays are adversely affecting business travel and should be reformed – both to provide for enhanced security and to further U.S. foreign policy goals and commercial interests

“What the U.S. business community initially thought was a temporary bottleneck in establishing the new procedures has turned into a serious and apparently long term problem,” said Reinsch in testimony submitted to the House Committee on Small Business. “Since last summer, both the certainty of timing and the transparency of the process have disappeared, and, as a result, businesses inviting foreign guests to the U.S. or seeking to bring their own employees to the U.S. can no longer predict with any confidence when, or if, they will be able to do so. The lack of confidence in the timeliness of a response has hurt a growing number of industries.”

Reinsch noted that visa applications currently are being delayed or denied in such circumstances as: buyers applying to visit the U.S. to take possession of items they have purchased (often having already received an export license from the U.S. government for the item), foreign employees of U.S. companies applying to visit temporarily for training or work on special projects, and potential customers for U.S. goods or services wanting to examine the products and negotiate a purchase.

“The new process ignores commercial considerations, strains our foreign relations by telling business visitors they are unwelcome, and does little to achieve the increased security objectives for which it was intended,” said Reinsch.

Until July 2002, the State Department processed visa applications involving a visitor’s access to technology pursuant to a relatively transparent, time-limited process. As a part of the war on terrorism, however, last summer the State Department implemented changes to its application review programs that increased the number referred to Washington to be reviewed by an interagency process that includes the FBI and CIA. The lengthy delays caused by these changes affect not only industry, but also the scientific community, as well as travel by foreign scholars, speakers and musicians. To remedy this, the NFTC would like to see a return to a time-limited review process that provides certainty and transparency to business.

“A return by agency officials to a balanced perspective on visa application reviews that takes into account the damage delays and denials do to international standing and commercial objectives is essential to establishing a fair and efficient application process,” Reinsch concluded.

To view the transcript of the testimony, click on hyperlink or paste the URL in your web browser http://www.nftc.org/default/tvisas.603.doc

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