NFTC Launches New “Alliance for National Security and Competitiveness”

Jeannette Chu, NFTC Vice President for National Security Policy

WASHINGTON DC – National Foreign Trade Council (NFTC) today launched the “Alliance for National Security and Competitiveness,” a new effort to help businesses take a leadership role engaging on export controls, sanctions and investment policies.

Building on NFTC’s history of leadership on export controls and sanctions issues, the Alliance will help lead business community engagement on national security and competitiveness and serve as a partner to the government to inform policy-making.

“As national security interests continue to converge with economic security, it is vital that the voice of business is heard and that industry can inform policy making at all levels,” said Jeannette Chu, NFTC’s Vice President for National Security Policy, who will serve as Executive Director of the Alliance.

Speaking at the event announcing the Alliance’s formal launch, Deputy Secretary of Commerce Don Graves said, “At the Department of Commerce, we are fully engaged in our expanded role advancing the U.S.’s national security priorities. This new era calls for new methods of understanding and responding to the ever-evolving international landscape – one that places our country’s economic strength and toolkits at its center.” He added, “The U.S. private sector remains a critical partner in all our work as we drive forward the vital mission of protecting, promoting, and preserving our national security.”The Deputy Secretary delivered remarks and engaged in a fireside chat with NFTC President Jake Colvin.

The Alliance will inform on major political, policy and regulatory developments in the United States and key foreign jurisdictions by:

  • emphasizing the need for thoughtful policies to bolster American security and competitiveness;
  • strengthening relationships with key officials;
  • developing best practices and model text to inform future regulatory and legislative efforts and
  • encouraging multilateral cooperation, policy harmonization, and common licensing standards and practices where possible.

“The multisectoral nature of NFTC’s membership makes this Alliance a unique platform for convening the business community and building bridges across legislative, regulatory, diplomatic and policy communities. We look forward to supporting U.S. national security and enhancing competitiveness,” said Chu.

NFTC President Jake Colvin and Deputy Secretary of Commerce Don Graves

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About the NFTC
The National Foreign Trade Council (NFTC) is the premier business association advancing trade and tax policies that support access to the global marketplace. Founded in 1914, NFTC promotes an open, rules-based global economy on behalf of a diverse membership of U.S.-based businesses.

Press Release | NFTC Statement on U.S.-Chile Tax Treaty Entry Into Force

WASHINGTON DC – National Foreign Trade Council (NFTC) Vice President for International Tax Policy Anne Gordon today issued a statement following the announcement that the Convention Between the Government of the United States of America and the Government of the Republic of Chile for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income and Capital (the U.S.-Chile Tax Treaty) enters into force today with an impact in 2024: 

NFTC commends the Governments of the United States and Chile for taking the final step in the long process to approve the U.S.-Chile Tax Treaty, allowing the agreement to enter into force today. The U.S.-Chile Tax Treaty is essential for strengthening the economic relationship between the United States and Chile, a vital U.S. partner in Latin America. The agreement will bring relief from double taxation for U.S. businesses operating in the country and will enhance economic cooperation and increase investment in both countries.

“NFTC has long advocated for the expansion of the U.S. tax treaty network to ensure the continued global competitiveness of American businesses by eliminating excessive foreign taxes, double taxation, and other obstacles in international markets. Bilateral income tax treaties such as this one are fundamental to strengthening international ties and creating economic opportunities for our businesses abroad.

“NFTC supports continued efforts by the Administration and Congress to promote strong international economic relationships by negotiating and ratifying additional tax treaties in the future.”

 

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About the NFTC
The National Foreign Trade Council (NFTC) is the premier business association advancing trade and tax policies that support access to the global marketplace. Founded in 1914, NFTC promotes an open, rules-based global economy on behalf of a diverse membership of U.S.-based businesses.

NFTC: Statement on Select Committee Recommendation on De Minimis

WASHINGTON, DC – In response to the announcements that the House Select Committee on the Strategic Competition Between the U.S. and the Chinese Communist Party (Select Committee) has recommended legislation that would reduce the current threshold for de minimis treatment of low-value goods, NFTC Senior Director of International Supply Chain Policy John Pickel released the following statement:

“The recommendation from the Select Committee to reduce de minimis would make everyday purchases more expensive for American consumers and small businesses without improving enforcement at our borders. The recommended reduction of the current threshold is tantamount to a new tax that will hurt low-income and underserved communities the most without addressing risks that are present in all ways that products come into the U.S.

“Reducing de minimis would double the cost of a $50 package, costing taxpayers millions and undoubtedly causing unnecessary delays for businesses and consumers without improving enforcement.

“De minimis is not a loophole; it is a staple of U.S. customs law that Congress designed to provide access to international markets for small businesses and lower costs for consumers. CBP has confirmed that de minimis shipments are processed the same way as higher-value parcels and are subject to enforcement of U.S. laws, including the Uyghur Forced Labor Prevention Act.

“This recommendation would not address challenges in the important work of stifling the flow of illicit drugs and products made using forced labor from entering our borders. There are policy options that improve enforcement of U.S. laws at our borders, including increasing compliance across all ways that products come into the U.S. without doubling costs for American consumers and small businesses.

“We urge Congress to consider the negative impacts that reducing de minimis will have, particularly on inflation and our fragile supply chain at a vulnerable time for the economy. Lawmakers should allow de minimis to continue doing what Congress intended the law to do: relieve supply chain congestion and provide American consumers and businesses with better access to buy supplies and sell finished goods on the global market.”

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About the NFTC

The National Foreign Trade Council (NFTC) is the premier business association advancing trade and tax policies that support access to the global marketplace. Founded in 1914, NFTC promotes an open, rules-based global economy on behalf of a diverse membership of U.S.-based businesses.

Press Release | NFTC: Canada’s DST “Fundamentally-Unwise” Tax Policy

WASHINGTON DC – National Foreign Trade Council (NFTC) Vice President for International Tax Policy Anne Gordon today issued a statement following the Notice of a Ways and Means Motion to introduce a bill that would implement a Digital Services Tax (DST):

“Despite the modest revisions, Canada’s plan for a DST still remains fundamentally unwise tax policy and targets American technology providers. At a time when the United States and Canada should be working closely together to address broader global challenges, their insistence on moving ahead with this measure will hinder efforts to reach an international consensus on issues of taxation involving the digital economy and threatens to encourage a patchwork of country-specific DSTs that undermines efforts to reach a more durable global system.”

“We will continue to urge Canada to reconsider implementation of their DST and to focus instead on the multilateral process underway at the OECD.”

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About the NFTC
The National Foreign Trade Council (NFTC) is the premier business association advancing trade and tax policies that support access to the global marketplace. Founded in 1914, NFTC promotes an open, rules-based global economy on behalf of a diverse membership of U.S.-based businesses.

NFTC Statement on IPEF Outcomes

SAN FRANCISCO, CA – In response to the announcements that the Indo-Pacific Economic Framework for Prosperity (IPEF) negotiations for the Clean Energy (Pillar III) and Fair Trade (Pillar IV) have concluded and the Supply Chain (Pillar II) agreement was signed, NFTC President Jake Colvin released the following statement:

“The collaboration announced this week under IPEF is an important signal of U.S. engagement in the Indo-Pacific, and the Commerce Department’s novel approach to strengthen cooperation on supply chains, clean energy and anti-corruption has the potential to bolster America’s economic integration in the region.  

“With continued U.S. leadership, we expect that these frameworks will deliver commercially-meaningful outcomes that address obstacles to business in the region across sectors like healthcare, manufacturing, clean energy, and digital services. 

“While these unique frameworks hold promise, it’s frustrating to see progress stall on efforts to develop the kind of concrete trade rules that foster certainty for American businesses and raise standards among our key allies in the region, particularly around the digital economy and trade facilitation. Voluntary frameworks are no substitute for the kind of binding commitments that ensure fair access for American businesses and workers to the global economy. 

“Going forward, the Administration has an opportunity to expand the scope and depth of commitments under the trade pillar and articulate a clear vision for digital trade leadership to help American businesses of all sizes capitalize on the economic promise of the Indo-Pacific region.

“We look forward to working with the Administration and Congress to build upon these initial outcomes to further deepen America’s economic integration in the Indo-Pacific and fulfill President Biden’s call when IPEF was launched to develop high-standard rules of the road for the digital economy.”

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About the NFTC
The National Foreign Trade Council (NFTC) is the premier business association advancing trade and tax policies that support access to the global marketplace. Founded in 1914, NFTC promotes an open, rules-based global economy on behalf of a diverse membership of U.S.-based businesses.

NFTC Statement on U.S. Removal of Support from WTO e-Commerce Initiative Proposals

Washington D.C. – In response to the statement by USTR that the United States would withdraw support for key elements of a digital economy agenda at the World Trade Organization, NFTC President Jake Colvin released the following reaction:

“It’s astonishing to see the United States essentially abdicate its leadership role in writing the digital rules for the global economy and preventing illegal trade discrimination and burdensome barriers against American interests. 

“Digitally-enabled trade facilitates more effective access to international markets for American farmers, ranchers, service companies and manufacturers, who rely on the global reach of a range of U.S. technology providers to succeed. 

“This decision by the Biden Administration is short-sighted and will cause long-term harm for American businesses of all sizes, as well as innovators and workers who depend on digitally-enabled trade to reach global markets. It’s particularly problematic for small businesses and undermines efforts to support more inclusive access by women and underserved communities to the global marketplace. This move also contradicts widespread calls from both sides of the aisle in Congress for more aggressive U.S. leadership on digital trade.” 

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About the NFTC

The National Foreign Trade Council (NFTC) is the premier business association advancing trade and tax policies that support access to the global marketplace. Founded in 1914, NFTC promotes an open, rules-based global economy on behalf of a diverse membership of U.S.-based businesses.

NFTC Statement in Response to the Release of the USITC Report to Analyze Effects of TRIPS Waiver

WASHINGTON DC – National Foreign Trade Council (NFTC) President Jake Colvin today issued the following statement following the release of the U.S. International Trade Commission (USITC) report on “COVID-19 Diagnostics and Therapeutics: Supply, Demand, and TRIPS Agreement Flexibilities:”

“NFTC welcomes the USITC’s report analyzing the impact that weakening IP protections on COVID-related products might have on the U.S. and around the world.

“The findings of this report support the idea that global collaboration on other regulatory and trade facilitation measures can improve access to COVID-related products and ought to be the focus of policymakers. We will continue to work with stakeholders ahead of the WTO’s next ministerial meeting in early 2024 to encourage the implementation of global best practices to support access to COVID-19 diagnostics and therapeutics and better address future pandemics.

“Weakening IP protections would harm the U.S. economy and impair innovation that will be critical to developing new life-saving products, and won’t contribute to improved access to these products around the world.”

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About the NFTC
The National Foreign Trade Council (NFTC) is the premier business association advancing trade and tax policies that support access to the global marketplace. Founded in 1914, NFTC promotes an open, rules-based global economy on behalf of a diverse membership of U.S.-based businesses.

NFTC VP: Questions Still Remain on Implementation of OECD Pillar Two

Washington D.C. – The National Foreign Trade Council (NFTC) today submitted comments to the OECD on the Administrative Guidance on the Global Anti-Base Erosion Model Rules (Pillar Two) released this July.

The comments once again stress that while the U.S. business community is supportive of the OECD’s process, it is critical for the Inclusive Framework (IF) to address the issues that still remain.

“The OECD has issued a multitude of guidance on this matter, but there are still issues that are being negotiated or otherwise yet to be resolved. At this juncture, it is going to be difficult for companies to apply Pillar Two without having a cohesive set of guidance that establishes consistent implementation and legal status across jurisdictions,” said Anne Gordon, NFTC Vice President for International Tax. “Until these concerns are addressed – many of which are enumerated in our comments – it will be hard for the U.S. business community to be fully supportive of this process.”

Download NFTC’s comments here.

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About the NFTC
The National Foreign Trade Council (NFTC) is the premier business association advancing trade and tax policies that support access to the global marketplace. Founded in 1914, NFTC promotes an open, rules-based global economy on behalf of a diverse membership of U.S.-based businesses.

NFTC Report Shows Economic Effects of Onerous FASB Provisions

WASHINGTON DC – A report published by the National Foreign Trade Council (NFTC) today showed the negative economic effects of the Financial Accounting Standards Board’s (FASB) Improvements to Income Tax Disclosures on the U.S. economy.

The report indicated that companies may experience cost increases in impacted business functions as high as 62% and averaging 9.9%.

“As the report itself states, the increased costs lead to higher prices, lower demand and lower employment,” said Anne Gordon, Vice President for International Tax Policy at NFTC. “The effects also go beyond that – at a time of economic recovery, these rules may decrease corporate investment which could lead to a decrease in GDP or about $12 billion in 2022 terms. Considering these effects, we’d urge FASB not to move forward with this harmful proposal.”

Other findings in the report include:

  • Lower employment and wage growth;
  • Reduction of 27,000 full-time equivalent jobs, in year one alone;
  • Impacts on economy-wide wage and salary income amounting to the cost-equivalent of the loss of 609,000 average-wage jobs cumulatively by 2040;
  • Slower economic growth;
  • Decrease in investment; and
  • Create competitive disadvantages for companies required to report.

Download the full report here.

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About the NFTC
The National Foreign Trade Council (NFTC) is the premier business association advancing trade and tax policies that support access to the global marketplace. Founded in 1914, NFTC promotes an open, rules-based global economy on behalf of a diverse membership of U.S.-based businesses.

NFTC Welcomes Movement on Taiwan Tax Act

WASHINGTON DC – National Foreign Trade Council (NFTC) Vice President for International Tax Policy Anne Gordon issued the following statement following Senate Finance Committee passage of the U.S.-Taiwan Expedited Double Tax Relief Act:

“We were happy to see unanimous approval of the U.S.-Taiwan Expedited Double Tax Relief Act in the Senate Finance Committee and welcome their commitment to working alongside the Senate Foreign Relations Committee on continuing forward momentum on this important issue.

“Bipartisan and unanimous consent of this Act shows continued appetite on the part of the Hill to ensure American companies have a fair shot at competing in international markets, and we look forward to learning further details as the bill continues to move through the appropriate process.”

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About the NFTC
The National Foreign Trade Council (NFTC) is the premier business association advancing trade and tax policies that support access to the global marketplace. Founded in 1914, NFTC promotes an open, rules-based global economy on behalf of a diverse membership of U.S.-based businesses.