ITC Report an ‘Important Milestone’ in TPP Process

Washington DC– The National Foreign Trade Council(NFTC) today welcomed the U.S. International Trade Commission (ITC) report on the Trans-Pacific Partnership (TPP).

“The release of the ITC report on the TPP should help to pave the way for Congressional approval of the agreement,” said NFTC President Rufus Yerxa. “As with all trade agreements, there are sectors that stand to benefit more than others, but overall this report supports the proposition that the TPP is in our overall national interest. It will have positive benefits in increasing exports and promoting the competitiveness of American companies. It is also important to remember that much of the ITC’s analysis rests on measuring the benefits of tariff elimination, and this is only part of the story. The broader and more long-term benefits of the TPP flow from the creation of a more level playing field, with new rules and disciplines in areas such as the digital economy, services trade, intellectual property and state-owned companies. These new and more dynamic non-tariff rules will help to shape trade and investment throughout the Asia Pacific in a manner more consistent with the long-term goal of achieving freer but fairer trade.”

“The TPP is a critically important agreement that will help to expand U.S. access to an increasingly diverse and competitive market, and we are committed to working with policymakers to pass TPP this year,” said Chuck Dittrich, NFTC Vice President for Regional Trade Initiatives. “The ITC report also reminds us that programs of worker adjustment and training along with robust enforcement mechanisms are critical pillars of U.S. trade policy, and the NFTC and its members support Administration and Congressional commitment in these areas to ensure that the United States fully realizes the opportunities created by the TPP.”

###
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.

Leading Business Groups Express Concern Over Economic Impact of Treasury’s Proposed Section 385 Regulations

Washington DC– TheNational Foreign Trade Council(NFTC) joined more than 20 other leading business associations today in sending a letter to U.S. Secretary of the Treasury, expressing concerns about the agency’s proposed debt-equity regulations under Internal Revenue Code Section 385 (the “proposed 385 regulations”). In the letter to Secretary Lew, the associations cautioned that the proposed regulations would negatively impact U.S. businesses, jobs and the economy.
 
The groups wrote:
 
“The proposed guidance, which overturns long-standing tax principles and well-established case law and regulations, will significantly increase the cost of doing business in the United States, and create further obstacles to much needed investment, job creation and economic growth. Because of the significant and disruptive impact of the proposed 385 regulations on critical business operations of a wide swath of employers in the United States, we respectfully request that, at a minimum, Treasury:
  • “Change the effective date for the proposed debt-equity recharacterization rule from applying to debt instruments that are issued on or after April 4, 2016, and instead apply the rule to debt instruments that are issued on or after the date that is 90 days after the proposed regulations are finalized;
  • “Extend the public comment period fromJuly 7, 2016, toOctober 5, 2016, at the earliest; and
  • “Dedicate adequate time and resources for a thorough review and analysis of the public comments on the proposal.”
In addition,NFTC Vice President for Tax Policy Cathy Schultz said, “The proposed regulations will affect the financing structure of almost every NFTC member company. Without a delay in the comment period, we are concerned that companies have little time to determine how the proposed regulations will affect them and then develop comprehensive comments that will reflect their concern about these proposed regulations.”
 
Schultz continued, “We also believe that theApril 4effective date should be delayed so that it does not negatively affect company investment before the regulations are finalized. Eliminating the retroactive effective date and extending the comment period would ensure that the comments that Treasury and IRS receive reflect company concerns, and will give the IRS and Treasury information on the economic impact that the proposed regulations will have on job growth and investment in the United States.”

###

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 Applauds Senate Passage of MTB Bill

Washington DC – The National Foreign Trade Council (NFTC) today applauded Senate passage of the American Manufacturing Competitiveness Act of 2016, legislation that will help protect the trade secrets of American companies.

“For companies of all sizes, the miscellaneous tariff bill process is a practical mechanism that preserves American jobs and investment and increases the competitiveness of U.S. manufacturing,” said NFTC President Rufus Yerxa. “We look forward to the President signing it into law.”

“We applaud the Senate for passing this legislation, which will reform and modernize the miscellaneous tariff bill process in a way that achieves bipartisan support needed for congressional passage,” said Chuck Dittrich, NFTC Vice President for Regional Trade Initiatives.


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.Follow us on:

 

 

 

NFTC Blog Post: “The Art of the Leak”

Washington DC–Today, in a blog post, titled “TPA: Power to the People,” Bill Reinsch, President of theNational Foreign Trade Council (NFTC), wrote:
“Once again, to the surprise of nobody, the anti-trade folks are demonstrating their skill at the art of the leak – find and make public documents that reveal government positions, exaggerate the significance of both the documents and the positions, attack the positions knowing that government cannot fully respond without breaching its own confidentiality rules, and then conclude that the entire agreement under negotiation is fatally flawed.

“It’s a clever strategy – although it has yet to be successful – because it puts government on the defensive, distracts the negotiators, and slows down the process, thereby creating more time for new attacks. Unfortunately, it badly distorts the debate and focuses it away from the real issues.

“First and most important, trade negotiating documents reflect each side’s positions. Do they agree? Of course not. If they did, there wouldn’t be anything to negotiate. Are they overstated? Of course they are. Governments take more extreme positions in order to give themselves maneuvering room as the process moves on. The negotiating process is about narrowing those differences, or in some cases it’s about acknowledging that differences cannot be reconciled and moving on to other topics. Making these documents public rarely produces surprises, since governments’ positions are generally well known.

“For example, see Public Citizen’s comment on the most recent Transatlantic Trade Partnership (TTIP) leak: ‘Taken in their entirety, the U.S. proposals are affirmatively hostile to the precautionary principle.’ There’s a surprise. The United States has opposed the precautionary principle in multiple fora for decades. It’s a Luddite affectation designed to disguise protectionism.”

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.Follow us on:

NFTC Applauds House Passage of Legislation to Protect Trade Secrets

Washington DC –The National Foreign Trade Council (NFTC) today applauded House passage of the Defend Trade Secrets Act of 2016, legislation that will help protect the trade secrets of American companies.
 
 
“For companies of all sizes, trade secrets are a critical part of their intellectual property, and this bill will help protect them. This legislation also will strengthen the U.S. government’s hand when negotiating with other nations to ensure adequate trade secrets protection for U.S. companies in those countries, including in trade negotiations,” said Jake Colvin, NFTC Vice President for Global Trade Initiatives and Executive Director of its Global Innovation Forum.
 
 
“We commend members of the House on both sides of the aisle for working together to pass this important legislation, and we look forward to the President signing it into law,” said Colvin.
 


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.Follow us on:

 

 

 

New Study Details the Impact of an Environmental Goods Agreement on China

The Coalition for Green Trade today released the results of a new study detailing the effects that a World Trade Organization (WTO) Environmental Goods Agreement (EGA) would have on the economy of China and the country’s ability to meet its environmental goals.

Overall, the study, “Value of an Environmental Goods Agreement: Helping China Meet Its Environmental Goals,” finds that full implementation of an EGA accord to eliminate tariffs on green technologies by China – the largest producer of these technologies participating in the EGA negotiations – would have a positive impact on the Chinese economy and environment.

The study was principally prepared by Dr. Joseph F. Francois and Laura M. Baughman of the Trade Partnership Worldwide, LLC. They find that full implementation by China of an ambitious EGA:

  • Increases China’s GDP and national income by billions of dollars;
  • Increases exports by nearly $27 billion, up by 9.8 percent;
  • Increases real spending of roughly $22 billion annually on environmental goods; and
  • Results in gains of approximately $659 billion annually in economic benefits linked to improved environmental quality, based on the literature assessing cost-benefit ratios for investment in improved environmental conditions.
In July 2014, the United States and a group of other countries launched EGA negotiations at the World Trade Organization (WTO) in an effort to improve access to important green and energy efficient technologies, among other objectives. The United States and the 16 other WTO members participating in the EGA talks account for at least 86 percent of global environmental goods trade.

The Coalition for Green Trade is composed of a broad range of associations – including the U.S. China Business Council, which provided advice and outreach in support of this report – and companies doing business in the United States who seek to remove barriers to global trade in environmental technologies.

[Click here for English version of the study]
http://www.nftc.org/default/GIF/Value-of-the-EGA-ENGLISH.pdf

[Click here for Chinese version of the study]
http://www.nftc.org/default/GIF/Value-of-the-EGA-CHINESE.pdf

 

 

 

NFTC Releases Policy Brief on “Charting New Pathways for the WTO”

Washington DC – Today, the National Foreign Trade Council (NFTC) released a new policy brief on “Charting New Pathways for the WTO.” The brief outlines the U.S. business community’s priorities for the World Trade Organization (WTO), including the pursuit of a digital trade agenda and a micro, small and medium-sized business agenda.

“This is an exciting time in Geneva,” said Jake Colvin, NFTC Vice President for Global Trade Initiatives and Executive Director of its Global Innovation Forum. “There is a new opportunity to align business and development interests at the WTO around policy agendas that ensure access to the digital economy and support the competitiveness of small businesses and entrepreneurs in the global trading system.”

In the brief, NFTC details how WTO members could align development and business interests to facilitate access to the global marketplace around new small business and digital trade agendas.

The brief outlines how the WTO could build on existing disciplines to improve the global digital economy, including by:

  • Ensuring a default of openness in information flows and that businesses can provide digital services on a cross-border, non-discriminatory basis;

  • Guiding the development of best practices around national data privacy, security, lawful access to information and other issues that impact the digital economy in ways that regulate appropriately in the interest of the public good without hindering access to the global digital marketplace, being more trade restrictive than necessary, or creating unnecessarily divergent or conflicting rules; and

  • Defining appropriate protections for Internet intermediaries; among other recommendations.
The NFTC also suggests priorities for a micro, small and medium-sized business WTO work plan to achieve objectives including:
  • Deepen transparency initiatives to ensure that regulations and procedures are easily understood and accessible, including provisions for single portals for access to regulations and required filings;

  • Further improve physical trade lanes, including by facilitating the transit of the low-value, low-risk packages that characterize many micro and small business’ shipments through expedited procedures and increase of de minimis thresholds; digitizing customs forms and procedures; maximizing market access for transportation and logistics services providers; and improving market access for goods; and
  • Address standards and conformity assessment issues to ensure that rules and regulations are compatible across economies; among other priorities.
“Today’s global economy demands modernized trade rules for the 21st century and beyond, and there is an opportunity for creating new pathways for the world’s economies at the WTO,” said NFTC President Bill Reinsch. “Technology and innovation have transformed the way the world does business, and it is time for world trade rules to reflect this reality and its implications for global commerce.”

 

###


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.Follow us on: