National Foreign Trade Council (NFTC) President Jake Colvin today issued a statement following the confirmation by the Senate of Scott Bessent as Secretary of the Treasury:

“We would like to offer Scott Bessent our congratulations on his confirmation as Secretary of the Treasury. This is a critical year for tax policy for the American business community as Congress considers extending TCJA and the Administration contemplates how best to address the possibility of discriminatory digital taxes abroad. We look forward to working with Secretary Bessent and his staff on these issues.”

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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.

WASHINGTON DC – A number of leading associations representing the most advanced and competitive companies in the world today called on President Biden to cease publication of last-minute regulations developed outside the standard rulemaking process and absent industry consultation.

The letter, which was signed by the National Foreign Trade Council (NFTC), Information Technology Industry Council (ITI), the National Association of Manufacturers (NAM), the Semiconductor Industry Association (SIA), SEMI and the Semiconductor Technology Leadership Council, outlines industry concerns with recently published regulations that have bypassed standard regulatory rulemaking procedures and thus present a greater risk of causing unintended consequences or harmful outcomes  that could undercut our country’s national security.

In part, the letter reads: “Your Administration’s rush to publish last minute rules governing the export of AI and semiconductor technology with immediate effect – bypassing substantive consultations with subject matter experts in industry and academia – represents an unprecedented abandonment of time-honored regulatory norms and export control best practices. Compounding these concerns is the drive to issue such measures at “the 11th hour” of your term, leaving any complications, problems, or outright mistakes to be addressed by the next Administration, which has had no hand in developing them.”

“Even the most carefully crafted regulations can result in unintended consequences that hamper competitiveness and technology leadership in ways that can harm the very national security interests that such regulations are meant to protect,” added Jeannette Chu, NFTC Vice President for National Security Policy. “Robust consultation with subject matter experts across industry and academia can help ameliorate these risks.”

Full text of the letter can be found here and below.

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FULL TEXT OF THE LETTER

January 13, 2025

The President

The White House

1600 Pennsylvania Avenue N.W.

Washington, DC 20500

RE: Export Controls Rulemaking

Dear Mr. President:

Our associations write on behalf of a broad cross-section of companies in the United States who represent the most advanced and competitive technology enterprises in the world. We are proud to have contributed to the global technological and economic leadership position the U.S. currently holds.

We are deeply concerned regarding an increasing pattern of regulatory activity during the final days of your Administration, which appears to bypass standard rulemaking processes. Agencies are issuing inadequately considered, technically complex, and lengthy regulations without following federal rulemaking processes including consultation with industry stakeholders. These hastily issued regulations call for immediate compliance and implementation without regard for how U.S. national security, global leadership and competitiveness may actually be diminished through faulty assumptions and incomplete data.

Last month, we learned of plans by the National Security Council and Department of Commerce’s Bureau of Industry and Security (BIS) to publish an Interim Final Rule (IFR) establishing a new export controls framework governing AI diffusion. This IFR was published earlier today without first gathering data and recommendations from the public through issuance of either an Advance Notice of Proposed Rulemaking or Notice of Proposed Rulemaking, or consultation with industry and academia.

Similarly, we understand that your Administration plans to imminently publish a separate rule modifying and expanding an export control Interim Final Rule regulating semiconductor technology published on December 2, which was effective immediately and still open for public comment. We understand that this additional rule will even more strictly control high bandwidth memory, without consideration of how such changes may impact U.S. companies or cede market share to global competitors. Again, these pending regulations have been developed without appropriate industry consultation or the opportunity for public comment, despite their long-term impacts and economic and international significance. The potential loss of U.S. market leadership due to the unilateral nature of the proposed controls damages the ability of U.S. companies and companies operating in the U.S. to fuel innovation and advancement that is central to our technology leadership and national security.

Our members recognize the importance of national security and foreign policy goals, and appreciate the need to responsibly regulate advanced and critical technologies in a targeted and effective manner that carefully considers the global competitive environment. Several signatory associations have partnered with your Administration on a wide range of policy matters including semiconductor manufacturing and advanced computing, artificial intelligence, outbound investment security, bulk data security and securing Information and Communication Technology and Services (ICTS) supply chains, and other matters.

This partnership has produced better-informed policies and regulations. However, your Administration is now moving ahead with regulations on artificial intelligence (AI) and semiconductor technology without adequate study, involvement of industry and research stakeholders, or multilateral coordination that is critical to the effectiveness of export controls.                    

Even the most deftly crafted and implemented federal regulatory efforts are beset with unintended consequences. The more complicated the technology, the greater the risk of such harmful outcomes, which undercut the national security objectives that triggered such regulation in the first place.

Your Administration’s rush to publish last minute rules governing the export of AI and semiconductor technology with immediate effect – bypassing substantive consultations with subject matter experts in industry and academia – represents an unprecedented abandonment of time-honored regulatory norms and export control best practices. Compounding these concerns is the drive to issue such measures at “the 11th hour” of your term, leaving any complications, problems, or outright mistakes to be addressed by the next Administration, which has had no hand in developing them.

We respectfully request that you direct Administration officials, including BIS, to immediately cease publication of last-minute regulations that have been developed outside the standard rulemaking process and absent industry consultation. These rules are too important to be rushed or left to chance as they will significantly impact U.S. national security, the operations of a broad range of U.S. enterprises, U.S. global leadership in critical technology areas and our country’s international and economic relationships with key partners and allies.

Sincerely,

National Foreign Trade Council

Information Technology Industry Council

National Association of Manufacturers

SEMI

Semiconductor Industry Association

Semiconductor Technology Leadership Council

 

cc: The Honorable Gina Raimondo, Secretary of Commerce

The Honorable Shalanda Young, Director, Office of Management and Budget

The Honorable Jake Sullivan, Assistant to the President for National Security Affairs

The Honorable Dr. Lael Brainard, Director, National Council of Economic Advisors

The Honorable Kurt Campbell, Deputy Secretary of State

The Honorable Alan Estevez, Undersecretary for Industry and Security, U.S. Department of Commerce

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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.

Washington, D.C. – The National Foreign Trade Council (NFTC) Foundation is pleased to announce the election of Ambassador Demetrios Marantis as its new President. Marantis, a former Acting and Deputy U.S. Trade Representative with extensive experience in international trade policy, will lead the Foundation’s efforts to educate stakeholders on the importance of global commerce. Demetrios will succeed Leslie Griffin, who served as President of the NFTC Foundation for the last 5 years.

“We are grateful to Ambassador Marantis for taking on this leadership role as NFTC Foundation President,” said Jake Colvin, President of the NFTC. “We look forward to leveraging his unique expertise and passion for advancing international trade and investment to expand the Foundation’s leadership and initiatives.”

Ambassador Marantis has had a distinguished career in both the public and private sectors. In addition to serving as Acting and Deputy U.S. Trade Representative, where he played a key role in President Obama’s cabinet negotiating trade agreements with China and throughout Asia and Africa, he has held senior roles at Visa, Square, and other global organizations. His full bio is below.

“On behalf of the NFTC Foundation, we want to take this opportunity to thank Leslie Griffin for her outstanding leadership and commitment to the Foundation’s work,” said Hua Wang, Executive Director of the NFTC Foundation’s Global Innovation Forum (GIF). “Her efforts to promote small businesses and her collaboration with GIF have left a lasting impact.”

During her tenure, Griffin spearheaded numerous initiatives to promote the interests of small businesses and advance the Foundation’s mission in Boston and Washington, DC. She will continue to serve on the Foundation’s board.

About the NFTC Foundation

The NFTC Foundation is committed to promoting education and engagement around the critical role of trade and investment in driving economic growth and opportunity. Its major activities include hosting the annual World Trade Dinner, the International Tax Conference, and other high-impact educational events along with supporting and disseminating research and data about the opportunities and challenges of engaging in the global marketplace. The Foundation also houses the Global Innovation Forum (GIF), which elevates the voices of small businesses and entrepreneurs in the policy landscape by fostering meaningful connections with government officials, civil society, and private sector leaders. Through educational events, thought leadership, and collaboration with business, nonprofit and government stakeholders worldwide, the Foundation plays a pivotal role in advancing a robust and inclusive global trade system.

Biography of Ambassador Demetrios Marantis 

Ambassador Demetrios Marantis has deep expertise in helping public and private companies integrate geopolitical, regulatory, sustainability, and philanthropic priorities into their strategy and risk management. A former Acting and Deputy United States Trade Representative and member of President Obama’s Cabinet, Ambassador Marantis brought his extensive experience negotiating trade agreements with China and throughout Asia and Africa to senior executive roles at J.P. Morgan Chase, Visa, and Square. He currently runs a global geopolitical advisory firm, sits on several advisory boards, and speaks on global trade and other geopolitical issues. Based in Washington, DC, Ambassador Marantis received his undergraduate degree in public and international affairs from Princeton University in 1990 and his JD from Harvard Law School in 1993.

Ambassador Marantis served as the Global Head of Corporate Responsibility for J.P. Morgan Chase from 2021 to 2023, where he led a global team of over 400 professionals that oversaw the firm’s philanthropic initiatives, government relations, sustainability, and public policy. He served as Senior Vice President, Global Head of Government Engagement at Visa, from 2015 to 2021, where he developed proactive strategies to engage and partner with governments across the globe to advance the growth of electronic payments. Prior to Visa, Marantis founded and led the government relations and public policy team at Square, a high-growth international fintech.

Ambassador Marantis also has deep experience in government. He served as the Acting and Deputy United States Trade Representative from May 2009 until June 2013. Nominated by President Obama, Marantis was confirmed by the U.S. Senate and served with the rank of Ambassador. Among his many accomplishments, Marantis concluded and secured congressional passage of the Korea-U.S. Free Trade Agreement, designed and led negotiations for the Trans Pacific Partnership, spearheaded trade negotiations with China as well as India, Indonesia, Vietnam, throughout Africa, and negotiated the first-ever agreement in APEC to reduce tariffs on environmental goods.

Immediately prior, Marantis spent five years as the Chief International Trade Counsel to the U.S. Senate Finance Committee. He worked in Hanoi for two years as the Chief Legal Advisor for the U.S.-Vietnam Trade Council, served as Associate General Counsel at USTR from 1998 to 2002, and worked in the Brussels and DC offices of Akin Gump Strauss Hauer and Feld from 1993 to 1998.

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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.

About GIF

The Global Innovation Forum (GIF), an educational project of the 501(c)(3) National Foreign Trade Council Foundation, is a nonprofit that connects entrepreneur, small business, corporate, development, and university communities with policymakers to explore the opportunities and challenges of engaging in the global marketplace.