Category: Press Releases and Statements

NFTC Applauds WTO Negotiators for Significant Progress on ITA

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Washington DC – The National Foreign Trade Council (NFTC) today welcomed news that World Trade Organization (WTO) negotiators reached a breakthrough in talks on the Information Technology Agreement (ITA). NFTC Vice President for Global Trade Issues Jake Colvin released the following statement.
“The National Foreign Trade Council welcomes news of significant progress toward updating and expanding the ITA, which could eliminate up to an estimated $1 trillion in tariffs on goods that underpin the ability of the global economy to function in the digital age.
“We hope that advancements over the weekend will pave the way for the conclusion of an ambitious agreement to remove obstacles to trade in information technology goods globally. For NFTC member companies, many of which have played an active role in helping to bridge differences and cement progress among negotiators, this weekend’s news is an important milestone. While no agreement is perfect, the talks have dragged on long enough, and it is time to conclude a deal.
“We commend U.S. and the other ITA negotiating parties as well as WTO Director General Roberto Azevedo for their tireless efforts over many years to arrive at this moment. NFTC values the Obama Administration’s long-held commitment to finalizing and implementing the agreement, as there is more work to be done.
“Once concluded, the ITA will be a significant achievement for the WTO and its members, enhancing the credibility of the institution’s negotiating function and reinforcing the role it continues to play in advancing the rules-based global trading system.”

 

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, USA*Engage Statement on P5+1 Nuclear Agreement

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Washington DC – Today, the National Foreign Trade Council (NFTC) and USA*Engage released the following statement on the P5+1 nuclear agreement with Iran.

“There is no doubt the agreement reached between the P5+1 and the Islamic Republic of Iran will be hotly debated by the U.S. Congress, presidential contenders and an array of policy experts. Many dimensions will inform viewpoints: nuclear proliferation, regional strife and its shifting proxy considerations principal among them.

“The NFTC and USA*Engage have supported the negotiations because we support engagement as the best solution to complex international problems and the one which will most likely take business interests into account. The commercial dimensions of Iran’s re-entry into the global economy, if sanctions are lifted pursuant to the agreement, are not trivial.

“In this regard, the NFTC and USA*Engage continue to advocate for parity in the treatment of U.S. companies and their European and Asian competitors. As the agreement is implemented, the commercial interests of U.S. companies will clearly be part of the U.S. national interest.”

About USA*Engage

USA*Engage (www.usaengage.org) is a coalition of small and large businesses, agriculture groups and trade associations working to seek alternatives to the proliferation of unilateral U.S. foreign policy sanctions and to promote the benefits of U.S. engagement abroad. Established in 1997 and organized under the National Foreign Trade Council (www.nftc.org), USA*Engage leads a campaign to inform policymakers, opinion leaders, and the public about the counterproductive nature of unilateral sanctions, the importance of exports and overseas investment for American competitiveness and jobs, and the role of American companies in promoting human rights and democracy worldwide.
 

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 Blog Post: “Stabenow Voluntary COOL Proposal”

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Washington DC–Today, in a blog post, titled “Stabenow Voluntary COOL Proposal,” Gideon Gross of the National Foreign Trade Council (NFTC), wrote:

“… With the Senate taking up COOL, Senator Debbie Stabenow (D-MI) has proposed a voluntary labeling system instead of the outright repeal proposed in H.R. 2393. Her proposal unfortunately continues to pose the risk of retaliatory tariffs being implemented by Canada and Mexico, the potential costs of which could be as much as $3.2 billion. Senator Stabenow proposes a COOL regime with a voluntary system in which companies can opt in or out, but the U.S. statutes for COOL which define “made in America” would remain in place. While this proposal seems like an appealing solution, it carries risk for U.S. businesses for a number of reasons.

“As a result of the WTO ruling, Mexico and Canada are permitted to impose retaliatory tariffs against the U.S. as soon as mid-August. If the U.S. enacts the Stabenow proposal and Mexico and Canada deem it noncompliant with WTO rules, they could impose retaliation. If the U.S. appealed their actions, it would take as long as two years for the appeal to wind its way through the WTO Dispute Settlement Body with U.S. companies having to cope with the retaliation throughout the period.

“Supporters of COOL have been quick to point out that both Canada and Mexico use a voluntary system of country of origin labeling. They argue if the U.S. were to implement a system similar to theirs, it could avoid retaliatory tariffs. The risk in this assumption lies in the details of the U.S. COOL statute, including transportation clauses, which differ from both the Canadian and Mexican statutes. …

“…Ultimately, the goals of the U.S. should be to comply with WTO rules and obligations and avoid any sanctions that could hurt U.S. businesses. Repealing COOL before the August deadline is the best way to achieve those objectives. Subsequently creating a voluntary program with Mexican and Canadian input would allow businesses to simultaneously differentiate their products on the global market, avoid potential losses from retaliatory tariffs and maintain a labeling regime that can give consumers information on the products they are buying. The Stabenow proposal points us in that direction, but does not fully do the job.”

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, SoFTEC and USCIB Express Concerns with BEPS

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Washington DC – Last week, in a letter to Treasury Secretary Jacob Lew, leaders of the National Foreign Trade Council (NFTC), Software Finance & Tax Executives Council (SoFTEC) and United States Council for International Business (USCIB) highlighted their concerns with the direction of the OECD/G-20 base erosion and profit shifting (BEPS) project.

In the letter, the group wrote:

“U.S. business has been constructively engaged in the BEPS project submitting comments, participating in public consultations, consulting with the US Treasury, the Congress, other governments, and the OECD. This effort has been directed at ensuring that the BEPS outcomes are appropriately targeted to genuine BEPS concerns and such outcomes are administrable by business and governments. At this stage we are concerned that the emerging outcomes are not sufficiently targeted, and will result in increased double taxation, complexity, costs and reduced cross-border trade and investment. In order to improve the outcome, we believe it is important that the U.S. Treasury continue to advocate strongly for clear, detailed agreement on international tax rules that are consistent with the initial goal of the BEPS project; that is, to ‘provide countries with domestic and international instruments that will better align rights to tax with economic activity.”

“… Currently, the proposed changes to the international tax standards are lacking in clarity and will permit countries to define their taxing jurisdiction as they wish without regard to the functions, assets and risks that take place in that country. Such an approach will allow tax auditors a great deal of flexibility in defining whether a taxpayer is subject to tax within a particular jurisdiction and if so how much income is subject to tax.

“Throughout the BEPS process, US business has been pressing for clarity. The lack of clarity and threat of double taxation will create uncertainty which will have a negative impact on global trade and investment.”

Read the full letter here.

About the NFTC
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 & USA*Engage Statement on Reestablishment of Embassies in Cuba and the United States

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Washington DC. – The National Foreign Trade Council (NFTC) and USA*Engage today released the following statement:

“Last week in Cuba we observed a desire for closer economic and diplomatic relations from the Cuban government and the Cuban people. This announcement brings the United States and Cuba an important step closer to normalizing relations,” said Jake Colvin, Vice President for Global Trade Issues, NFTC. “President Obama, Secretary Kerry and a number of congressional leaders deserve great credit for enabling a new day for relations with Cuba. We look forward to working with the Obama Administration and Congress to remove remaining impediments to normal economic relations.”

“This is a momentous and critical step forward in U.S.-Cuba relations. We applaud the Administration and key members of Congress for all of their continued efforts to restore normalized relations,” said Richard Sawaya, Vice President, USA*Engage.

 

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About USA*Engage

USA*Engage (www.usaengage.org) is a coalition of small and large businesses, agriculture groups and trade associations working to seek alternatives to the proliferation of unilateral U.S. foreign policy sanctions and to promote the benefits of U.S. engagement abroad. Established in 1997 and organized under the National Foreign Trade Council (www.nftc.org), USA*Engage leads a campaign to inform policymakers, opinion leaders, and the public about the counterproductive nature of unilateral sanctions, the importance of exports and overseas investment for American competitiveness and jobs, and the role of American companies in promoting human rights and democracy worldwide.
 

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 Senate Passage of TPA, TAA & Preferences

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Washington DC – Today, National Foreign Trade Council (NFTC) President Bill Reinsch issued the following statement applauding Senate action on critical bipartisan trade legislation – Trade Promotion Authority (TPA), Trade Adjustment Assistance (TAA) and trade preference programs.

“Today’s Senate passage of TPA legislation marks an important milestone as we work to complete a series of important international trade agreements that will benefit U.S. businesses, farmers and workers.

“With 95 percent of the world’s consumers abroad, TPA provides U.S. trade negotiators with the tools needed to secure trade agreements that enable U.S. businesses and farmers to reach those consumers, something that is increasingly important in today’s competitive global marketplace.

“Additionally, we are encouraged by the Senate’s passage of legislation reauthorizing the trade preference programs, as well as TAA, which ensures U.S. workers displaced by trade are given the opportunity to acquire new skills and find alternative employment. Both TAA and preferences are crucial components of U.S. trade policy, and we call on the House to pass the bill and get it to the President’s desk for signature.”


 

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 Joins More Than 600 Organizations in Urging Support for Trade Preferences Programs

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Organizations Call on Congress to Pass Trade Preferences Extension Act of 2015 

Washington DC – Today, the National Foreign Trade Council (NFTC) joined with more than 600 companies and associations in sending a letter to the Hill urging support for the Trade Preferences Extension Act of 2015 (H.R. 1295). The legislation renews the Generalized System of Preferences (GSP) program and extends the African Growth and Opportunity Act (AGOA) and special trade preferences for Haiti – three critical components of U.S. trade policy. 

In a letter sent to all members of Congress this morning, the organizations wrote:  

“GSP expired nearly two years ago, on July 31, 2013. Since then, American companies have paid about $2 million a day – nearly $1.3 billion total – in higher taxes while awaiting congressional reauthorization of the GSP program. The mounting costs and uncertainty associated with congressional delay in renewing GSP have had a chilling effect on American businesses and workers. 

“… AGOA expires in less than four months. While products entering the United States from AGOA beneficiary countries continue to receive duty-free benefits, orders being placed now will arrive well after those benefits are set to expire. The time for a seamless AGOA renewal is long past, and as the deadline approaches more and more companies are canceling or delaying orders. 

“… Finally, H.R. 1295 extends special trade preferences for Haiti, the poorest country in the Western Hemisphere, through September 30, 2025. Enacting a long-term renewal now ensures that Haiti, like African countries under AGOA, does not lose crucial trade and investment opportunities because of the threat of pending expiration.” 

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 Calls on Senate Ag Committee to Support Repeal of COOL Requirements

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Washington DC–Today, National Foreign Trade Council (NFTC) President Bill Reinsch encouraged members of the Senate Committee on Agriculture, Nutrition and Forestry to support the repeal of Country of Origin Labeling (COOL) requirements on beef, pork and chicken as soon as possible.
 
In a letter sent this afternoon, Reinsch wrote:
 
“Repealing COOL will ensure the United States remains in compliance with its multilateral commitments. The World Trade Organization (WTO) has on four separate occasions ruled against U.S. laws on COOL on beef and pork products, most recently on May 18, 2015. The WTO has repeatedly found that COOL laws violate our most-favoured-nation commitments at the WTO … .
 
“TheMay 18ruling against COOL makes it more important than ever for the United States to show its commitment to the multilateral trading system and the WTO. The potential for retaliatory tariffs by some U.S. trading partners were it to continue to ignore the WTO ruling is counterproductive to U.S. interests. Such retaliation would have immediate and widespread detrimental effects on companies, including those in food, agriculture and manufacturing.
 
“More important, however, is the fact that the United States has a long history of compliance with WTO rulings, a record that helps us convince other countries they should do the same when they act in a way inconsistent with their obligations.”
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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.