Category: Press Releases and Statements

NFTC Applauds Introduction of Preserving Taxpayers’ Rights Act

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Washington D.C. – The National Foreign Trade Council (NFTC) welcomed news of the introduction of the Preserving Taxpayers’ Rights Act (H.R. 3220) by Representative Jason Smith (R-MO) and co-sponsored by Representatives Terri Sewell (D-AL), Judy Chu (D-CA), Mike Thompson (D-CA), Carlos Curbelo (R-FL), and George Holding (R-NC).

The Preserving Taxpayers’ Rights Act (H.R.3220) will improve the IRS’ ability to provide better service to its customers, will help taxpayers effectively fulfill their tax responsibilities, and will help minimize unnecessary litigation which is uncertain, expensive, and time consuming for both taxpayers and the IRS.

“The Preserving Taxpayers’ Rights Act will reform the IRS and improve its ability to provide effective and efficient services to taxpayers,” said Cathy Schultz, NFTC Vice President for Tax Policy. “In a year where tax reform is front and center, the introduction of this piece of bipartisan legislation is a great first step. We encourage all members of Congress to support this bill and to continue moving forward towards reforming our country’s outdated tax code.”

To read the full text of the legislation, a one pager and a section-by-section summary, click here.

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About the NFTC
Serving America’s Global Businesses Since 1914 – 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 hundreds of member companies through its offices in Washington and New York.
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NFTC President Testifies Before USTR on Renegotiation of NAFTA

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Washington D.C. – National Foreign Trade Council (NFTC) President Rufus Yerxa today delivered testimony before the Office of the United States Representative (USTR) regarding the upcoming negotiations of the North American Free Trade Agreement (NAFTA).
 
 
Outlining the importance of the existing NAFTA to U.S. companies, Mr. Yerxa noted that “Although our exporters still face some problems in Canada and Mexico, NAFTA has succeeded in eliminating most trade barriers in these two key markets. The expanding markets for U.S. manufacturers, service providers and agricultural producers have contributed significantly to the bottom line for our companies. It is therefore vital to ensure that these negotiations strengthen our ties with our North American partners. In particular, we see important gains to be made by securing new commitments in areas not contemplated when NAFTA was negotiated over 20 years ago.”
 
 
Mr. Yerxa’s testimony emphasized that negotiations should create more open markets and better rules, not new restrictions that would undermine existing access. He described the importance of a strong North American production platform in enabling the U.S. to compete with Asia and Europe. On behalf of NFTC, he outlined key negotiating objectives of his membership in different sectors, including more streamlined customs procedures, lower de minimus thresholds for low value shipments, better protection for U.S. patents and trade secrets, stronger investor protections and a better framework of trade rules to guarantee more open digital trade and facilitate growth of the internet economy.
 
 
For full testimony, click here.

 

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About the NFTC
Serving America’s Global Businesses Since 1914 – 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 hundreds of member companies through its offices in Washington and New York.
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NFTC Chairman Appointed Deputy Director-General of the WTO

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Washington D.C. – National Foreign Trade Council (NFTC) President Rufus Yerxa today applauded the announcement by World Trade Organization (WTO) Director-General Roberto Azevedo that he has appointed Ambassador Alan Wolff, Chairman of the NFTC, as his Deputy Director-General.

“I have known and worked with Alan Wolff for many years, both inside and out of government, and I am extremely pleased that the WTO has reached out to appoint someone with his experience, knowledge and wisdom as the next American Deputy Director-General.

“Most recently, he has been an outstanding and transformative leader of U.S. business interests as Chairman of our organization. As Deputy Director-General, Alan will play an important role in helping people understand the benefits of global trade and the importance of good agreements. We will miss his leadership in NFTC, but we understand the critical role that he will play in this era of uncertainty and change.”

Ambassador Wolff will serve alongside existing Deputy Directors-General Yonov Frederick Agah of Nigeria, Karl Brauner of Germany and Yi Xiaozhun of China during Azevedo’s second term, beginning on September 1, 2017.

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About the NFTC
Serving America’s Global Businesses Since 1914 – 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 hundreds of member companies through its offices in Washington and New York.
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NFTC Issues Statement on New Cuba Restrictions

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Washington D.C. –The National Foreign Trade Council (NFTC) today issued a statement regarding the Administration’s announcement to implement new restrictions on engagement with Cuba.

“We are disappointed that the Administration has decided to limit Americans’ ability to engage in Cuba,” said Richard Sawaya, USA*Engage Vice President. “The new restrictions announced today will harm American businesses and citizens without achieving their intended foreign policy objectives and set back U.S. leadership in the region.”

“The steps announced today will disadvantage American businesses and citizens as well as the Cuban people, who benefit from engagement with Americans,” said Jake Colvin, Vice President for Global Trade Issues at the National Foreign Trade Council. “American officials, business people and citizens are powerful forces for good in this world. It should be the policy of our government to facilitate their engagement in Cuba to the maximum extent possible rather than limit their freedom.”

Earlier this month, the Engage Cuba Coalition, the NFTC and other industry leaders released a report on the economic effects of reversing current Cuba policies. 

About the NFTC
Serving America’s Global Businesses Since 1914 – 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 hundreds of member companies through its offices in Washington and New York.

NFTC Outlines Guiding Principles for Modernization of NAFTA

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Washington D.C. – The National Foreign Trade Council (NFTC) today released a set of guiding principles for the modernization of the North American Free Trade Agreement (NAFTA). These principles underscore the stake that a wide range of American industries have in an open, integrated North American economy, one that better enables them to compete effectively in a challenging global marketplace.

In issuing these principles, NFTC President Rufus Yerxa observed that, “NAFTA has faced years of wildly inaccurate criticism, much of which blames the deal for job losses attributable to other factors, such as productivity gains and trade with China. At the same time, critics have failed to acknowledge the significant gains from NAFTA, which have manifestly outweighed the adjustment costs. For the overwhelming majority of American businesses, NAFTA has been a big help in growing exports, jobs and global competitiveness. We not only have a $600 billion market for U.S. exports to Canada and Mexico, but the broader North American production platform has made U.S. exports far more competitive in Asia, Europe and other global markets.

“Fortunately, the debate on NAFTA has become more balanced since the Administration announced its intent to renegotiate,” continued Yerxa. “It is now much clearer to policymakers that withdrawing from NAFTA or curtailing its benefits would irreparably hurt our economy, and that the only realistic course is to modernize and improve its provisions. NFTC’s guiding principles, together with our specific recommendations in key areas, focus on ensuring the right outcome for all Americans.”

NFTC’s guiding principles for NAFTA modernization are as follows:

 
1. The New NAFTA Should Create More Open Markets and Better Rules, Not New Restrictions: negotiations should be focused on improving market access and ensuring greater fairness, but must not become a pretext for designing new trade restrictions or undermining existing access.

2. The New NAFTA Should Strengthen the North American Production Platform: the agreement should strengthen North America as an integrated production platform for goods and services, enhancing U.S. producers’ competitiveness in global markets, while also maintaining strong investment protections in all three countries.

3. The New NAFTA Should Remain a Tripartite Agreement: the final agreement should maintain common rules and commitments among all three NAFTA partners. Separate bilateral agreements create greater inefficiencies for U.S. exporters.

4. The New NAFTA Should Reflect the Changing World Economy: negotiations should create new rules to ensure open markets in digital trade, e-commerce and other new technologies and modes of commerce that were not covered by the original agreement, establish new disciplines on state-owned enterprises and create better opportunities for small and medium-sized enterprises to compete in global commerce.

5. The New NAFTA Should Update Rules in Other Areas Covered by the Original Agreement: negotiations should seek to update NAFTA’s rules on services, intellectual property, customs and trade facilitation, sanitary and phytosanitary measures, technical regulation, and regulatory coherence to both ensure greater fairness and openness in NAFTA trade and make NAFTA a better model for future negotiations with other regions.
 

To read the full comments, click here.
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About the NFTC – Serving America’s Global Businesses Since 1914– 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 hundreds of member companies through its offices in Washington and New York.

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NFTC Applauds Introduction of Bipartisan Senate Cuba Travel Bill

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Washington D.C. – The National Foreign Trade Council (NFTC) applauds the introduction of the Freedom for Americans to Travel to Cuba Act of 2017 by Senators Jeff Flake (R-AZ) and Patrick Leahy (D-VT) with a bi-partisan majority of their colleagues.

Americans in both parties overwhelmingly support repealing the legislative bar to their right to travel freely to Cuba. Repealing the legislative travel ban will further U.S. national interests in the hemisphere; promote the economic and cultural ties that exist between the U.S. and Cuba, and encourage a shared commitment to addressing national security concerns of both countries.

“A Senate vote to repeal the travel legislative ban will reinforce U.S. commitment to normalizing diplomatic, commercial, and civic engagement between the U.S. and Cuba and further U.S.-Cuba relations appropriate to the 21st century,” said Richard Sawaya, Vice President of the NFTC.

“Many Americans would likely be surprised to learn that their government still restricts their right to travel,” said Jake Colvin, Vice President for Global Trade Issues at NFTC. “Ending the travel ban would remove this ridiculous limitation and promote connections with Cuban entrepreneurs and communities. We encourage Congress and President Trump to act swiftly on the Senators’ initiative.”

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About the NFTC
Serving America’s Global Businesses Since 1914– 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 hundreds of member companies through its offices in Washington and New York.
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NFTC Statement on Administration’s Intent to Modernize NAFTA

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Washington D.C. – National Foreign Trade Council (NFTC) President Rufus Yerxa issued the following statement regarding the notification to Congress today of the Administration’s intent to initiate negotiations regarding modernization of the North American Free Trade Agreement (NAFTA):

“Since its inception, NAFTA has brought enormous benefits to, and boosted economic growth in, all three countries. Canada and Mexico are the largest export markets for U.S. goods, making consumers in these markets vital to American exporters.

“It’s critical to get to an outcome that builds upon NAFTA’s success in creating a more open North American market. This modernization must strengthen America’s competitiveness in the global economy rather than impose new barriers.

“NFTC and our member companies are prepared to work closely with U.S. negotiators to identify key potential gains for the United States from a modernization of the agreement. A stronger NAFTA is vital for the U.S. economy as well as for U.S. workers, service providers, farmers and ranchers, and consumers.”

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About the NFTC
Serving America’s Global Businesses Since 1914– 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 hundreds of member companies through its offices in Washington and New York.
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Optimism for Comprehensive Tax Reform Hits New High in Survey by Miller & Chevalier and the National Foreign Trade Council

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Washington, DC – Miller & Chevalier Chartered and the National Foreign Trade Council (NFTC) today announced the results of their 2017 Tax Policy Forecast Survey, which reveals for the first time in 11 years significant optimism for comprehensive tax reform from leading tax executives at U.S. and foreign-based companies.

“The Republican sweep of the 2016 elections combined with continued work on the proposal released by the House Republican Tax Reform Task Force in June of 2016 has our respondents more confident than ever before that comprehensive tax reform will be enacted,” said Miller & Chevalier Member and Tax Department Vice Chair Marc Gerson, former majority tax counsel to the House of Representatives Committee on Ways and Means. “Nevertheless, our respondents are still uncertain as to the net impact of a comprehensive tax reform package on their businesses in light of the significant revenue-raising provisions, such as the border adjustment tax, that are being considered.”

Respondents believe President Trump will play a larger role in influencing tax policy than they expected President Obama would in previous years. In 2016, President Obama was seen as a distant third behind Speaker of the House Paul Ryan and House Committee on Ways and Means Chairman Kevin Brady. This year, President Trump scored near-equal to Speaker Ryan and higher than Chairman Brady.

Respondents this year also believe it is no longer a question of if tax reform happens, but when. When asked in January what they think the Trump Administration’s top priorities will be for 2017, respondents said repealing and replacing the Affordable Care Act would be the top priority. However, in light of the failed House attempt to pass the American Health Care Act in late March, comprehensive tax reform appears to have moved up the agenda.

“Now that the health care debate has been set aside, tax reform is the top legislative priority of both Congress and the Administration,” said Cathy Schultz, National Foreign Trade Council Vice President for Tax Policy. “We are hopeful that this renewed focus will result in a comprehensive tax reform package getting over the finish line.”

Survey Highlights

• Respondents are concerned with provisions that raise revenue, but they also see the need and potential for tax reform. 42 percent of respondents rank the high statutory tax rate and 33 percent of respondents rank taxation of worldwide income as the top area of business tax concern, both of which would be alleviated by measures outlined in the House Republican Tax Reform Task Force “Blueprint.”

• 42 percent of respondents expect 25 percent to be the top corporate tax rate – 5 percentage points higher than proposed in the Blueprint. This suggests some skepticism that Congress will be able to enact a rate as low as 20 percent.

• A third of respondents expect 33 percent to be the top individual tax rate. This is consistent with the Blueprint, which suggests respondents have faith that Congress can reduce the top individual rate to that level.

• Not surprisingly, a third of respondents said Republican control of both chambers of Congress will be the factor that most positively impacts tax policy in 2017. However, 26 percent of tax executives still see the lack of bipartisan support as the greatest impediment to reform. Republicans do not have a filibuster-proof majority in the Senate, and while reconciliation is a possibility, it comes with limitations. Some respondents may think that a bipartisan effort, similar to the successful effort in 1986, will be necessary.

• 22 percent of tax executives say the most important measure they are watching with respect to reform is the border adjustment proposal in the Blueprint, followed closely by an insufficient reduction in the statutory rate (21 percent) and limits on interest deductibility (20 percent).

A full copy of the survey results and analysis are available here. A link to the survey results infographic is available here.
 
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About Miller & Chevalier
Founded in 1920, Miller & Chevalier is a Washington, DC law firm with a global perspective and leading practices in Tax, Employee Benefits (including ERISA), International Law and Business, White Collar and Internal Investigations, Complex Litigation, and Government Affairs. In an era of big law, Miller & Chevalier is a top-ranked firm sharply focused on targeted areas that interact with the federal government. Over the past three years, the firm’s lawyers have represented more than 40 percent of the Fortune 100, one-quarter of the Fortune 500 and approximately 30 percent of the Global 100. Based in Washington, DC, a significant number of firm lawyers have held senior positions in the U.S. government and have written many of the regulations they currently help clients navigate. For more information on the firm, visit www.millerchevalier.com.

About the NFTC
Serving America’s Global Businesses Since 1914– 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 hundreds of member companies through its offices in Washington and New York.
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CONTACTS:

Marc Gerson, Vice Chair, Tax Department, Miller & Chevalier, 202.626.1475
Catherine Schultz, Vice President, Tax Policy, National Foreign Trade Council, 202.887.0278, ext. 2023
Aggie Howland, Media Relations, Greentarget, 312.252.4114

NFTC, CEE Release Comparative ECA Finance Graph

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Washington D.C. – The National Foreign Trade Council (NFTC) and the Coalition for Employment through Exports (CEE) today released a ‘Comparative ECA Finance Graph,’ comparing export credit agency (ECA) and market windows financing provided by major exporting countries in 2015 in support of their national exporters.

The ECA graph, based on data from the Export-Import Bank 2016 Competitiveness Report, underscores the gross disparity between U.S. export financing support and government export financing support provided by other countries, most significantly China, whose export financing volumes in 2015 were more than 40 times that of the United States.

“Fair trade and American jobs depend fundamentally upon maintaining a competitive balance in trading relationships” said Rufus Yerxa, President of the NFTC. “This data shows the extent to which our competitors are outspending the U.S. on export financing programs. Giving our exporters a level-playing field so they can compete globally and continue to create jobs is a key component of our economy. The Ex-Im Bank has supported U.S. exporters for decades, and it must not be relegated to the sidelines.”

John Hardy, President of CEE said: “The U.S. cannot sustain this imbalance without losing exports and the jobs they support. Both Houses of Congress understood this when the Ex-Im Bank was reauthorized by super-majorities in 2015. Currently, there are $30 billion in export transactions greater than $10 million in the Ex-Im Bank awaiting action. Those exports support more than 200,000 jobs in the U.S., and they cannot be supported without a fully functioning Ex-Im Bank.”

The NFTC and the CEE urge Congress and the Administration to support U.S. exporters and encourage job creation by addressing the Bank Board quorum issue, enabling the Ex-Im Bank to fulfill its potential as an export driver.

To view the graph mentioned above, please click here or copy and paste the following link into your web browser: http://bit.ly/2nBLjXD.

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About the NFTC
Serving America’s Global Businesses Since 1914– 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 hundreds of member companies through its offices in Washington and New York.
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