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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part of the National Foreign Trade Council, Inc.

1625 K Street, NW, Suite 200, Washington, D.C.  20006 · Tel: (202) 887-0278 · Fax: (202) 452-8160 · E-mail: ussabc@nftc.org

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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

.

 


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.

 

U.S.-Morocco FTA Coalition Reaffirms Commitment to Trade Pact in Wake of Terrorist Attacks

Washington, DC – The U.S.-Morocco FTA Coalition today condemned the recent terrorist attacks in Casablanca and reaffirmed its strong support for bolstering economic ties between U.S. and Morocco through the negotiation of a bilateral free trade agreement.

 

“We extend our deepest sympathies to the Moroccan people for the tragic events in Casablanca, and hope that these events will only increase the resolve to strengthen ties between our two nations,” said Bill Reinsch, President of the National Foreign Trade Council.

 

Reinsch noted that Morocco’s willingness to lock-in economic reforms and embrace trade liberalization as a hallmark of its development strategy sends a vital signal to other Middle East nations. “An FTA with Morocco sends a message to the rest of the world that the United States is committed to supporting a longstanding friend and a staunch ally in the war on terrorism,” he continued.

 

In addition to economic benefits, the ability to strengthen U.S. economic ties in the region has been seen as a vital tool in support of U.S. diplomatic efforts. The U.S.-Morocco FTA Coalition seeks to emulate the success of the recently enacted U.S.-Jordan FTA as the next step in greater joint cooperation throughout North Africa and the Middle East, and is supportive of the Bush Administration’s recently announced plans to begin negotiations for the formation of a U.S.- Middle East Free Trade Area.

 

“We stand ready to assist the U.S. and Moroccan governments as they move the negotiations forward,” said Peter Tichansky, President of the Business Council for International Understanding. “At a time of great uncertainty and potential peril at home and abroad, the United States must build closer ties with our friends and allies in the Muslim world and enhance stability in a moderate Islamic state like Morocco. An FTA is an important mechanism for achieving closer economic ties, which we believe will support our vital stakes in the region.”

 


 

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.

 

NFTC Endorses Proposed U.S.-Middle East Free Trade Area

Washington DC – The National Foreign Trade Council today endorsed President Bush’s call for a U.S.-Middle East Free Trade Area.

“We applaud the vision of the Bush Administration in its call for a Middle East Free Trade Area,” said NFTC President Bill Reinsch. “Clearly there will be significant hurdles to overcome, but we believe that in the long-term, this is the right thing to do. If successful, increased trade will lift the region’s economy, greatly improve U.S. relations with many Arab nations, and would be a positive development for U.S. business and workers.”

The Bush proposal foresees a 10-year effort in which the pact would be negotiated. 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 NFTC also supports the negotiation of additional FTAs with Egypt and other countries throughout the region.

“The recently enacted Jordan FTA has already achieved some very positive results, and has certainly helped solidify a strong U.S.- Jordanian relationship. It is reasonable to believe that improving economic ties with other Middle Eastern nations can help produce the same results,” Reinsch concluded.


 

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.

 

U.S. – South Africa Business Council Applauds South African Stance Against Apartheid Litigation in U.S. Courts

Washington DC – The U.S.-South Africa Business Council applauded this week’s announcement by South African President Thabo Mbeki that the South African government rejects the apartheid and reparations lawsuits that have been filed in U.S. courts against over 100 U.S. and foreign multinational corporations in favor of a South African reparation process under South African law. 

 

In his address to Parliament, Mbeki stated: “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.”

 

PresidentMbeki has made the correct decision in rejecting the claims of trial attorneys seeking to exploit South Africa’s apartheid past and reparations issue through litigation in U.S. courts,” said Dan O’Flaherty, Executive Director of the U.S. – South Africa Business Council.  “We don’t believe U.S. courts are the proper jurisdiction and therefore we support a dismissal of ATP cases.  We are gratified to see that the Government of South Africa agrees.”

 

 

 

 

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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1625 K Street, NW, Suite 200, Washington, D.C.  20006 · Tel: (202) 887-0278 · Fax: (202) 452-8160 · E-mail: ussabc@nftc.org

2 West 45th Street, Suite 1602, New York, NY  10036 · Tel: (212) 399-7128 · Internet Address: www.nftc.org

 

National Foreign Trade Council Launches New Interactive Website

Washington DC – The National Foreign Trade Council announced the re-launch of its website this week, www.nftc.org, boasting a new look and a full internal overhaul with interactive features and new “members only” services.

The redesigned site allows visitors to search top news stories using the new overall site search function, as well as current and archived press releases and NFTC committee reports. A monthly calendar on the homepage displays a “Calendar of Events,” allowing visitors to highlight a chosen date for a detailed description of the event. Tracking and usage statistics are also available for the site. Archives are available past 90 days and date back to September 2001.

NFTC members will be able to log into a members’ only area, using the website registration tool for verification and validation of membership, as well as register for conferences and meetings.  Members can also participate in online surveys, with the ability to automatically display results in bar graphical representation.

Visitors can interface with sister organization, USA*Engage, through the link www.usaengage.org, as well as many other trade groups and organizations.

www.nftc.org is designed by InfoVine, based out of Houston, TX.

 

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 several hundred  member companies through its offices in Washington and New York.