Category: Press Releases and Statements

NFTC Congratulates Dr. Okonjo-Iweala on Appointment for Second Term as WTO Director-General

Posted on by Veronica Berkshire

WASHINGTON DC – National Foreign Trade Council (NFTC) President Jake Colvin today issued a statement on the appointment of Dr. Ngozi Okonjo-Iweala for a second term as Director-General of the World Trade Organization (WTO):

“The NFTC congratulates Dr. Okonjo-Iweala on her appointment for a second term as WTO Director-General. She has been a steady and thoughtful leader during a time of tremendous geopolitical and economic challenges. The WTO will be very well-served by her continued leadership, and the business community looks forward to continuing to work with her and her team to meet today’s global trade and supply chain challenges.”

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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 Jamieson Greer Nomination for U.S. Trade Representative

Posted on by Veronica Berkshire

Washington DC – National Foreign Trade Council (NFTC) President Jake Colvin today issued a statement following the announcement that President-elect Donald Trump intends to nominate Jamieson Greer as United States Trade Representative (USTR).

“Congratulations to Jamieson. He is a seasoned trade expert and consummate professional who will bring new energy to an agency that has a long track record of advancing the interests of American businesses and workers.

“We look forward to working with Jamieson on our shared priorities of strengthening the global competitiveness of U.S. companies, creating new export opportunities and opening markets 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.

Press Release | NFTC Statement on the Election of Donald Trump

Posted on by Joe Locher

WASHINGTON DC – National Foreign Trade Council (NFTC) President Jake Colvin today issued a statement in response to the election of Donald Trump as President of the United States:

“Congratulations to former President Donald Trump on his election as the next President of the United States. As we have for over 100 years, the NFTC stands ready to work with the President-elect to ensure that U.S. companies can compete and thrive in the global economy.

“We look forward to working with the transition team and Trump-Vance Administration to promote trade and tax policies that aid the competitiveness of American businesses and workers and bolster U.S. global leadership in key technologies and national and economic security.

“While we may have our disagreements about the use of specific policy instruments like tariffs, we look forward to being a constructive business voice to help strengthen America’s economic alliances, stand up for U.S. businesses and workers abroad and set the standards that will guide the global 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.

Press Release | NFTC Welcomes Start of Negotiations on U.S. – Taiwan Comprehensive Tax Agreement 

Posted on by Joe Locher

WASHINGTON DC – National Foreign Trade Council (NFTC) Vice President for International Tax Policy Anne Gordon issued the following statement following the U.S. Department of the Treasury’s announcement that the United States and Taiwan will begin negotiations towards a comprehensive tax agreement to address double taxation:

“NFTC welcomes Treasury’s announcement that work will commence on an agreement between the U.S. and Taiwan to address double taxation with a key ally and important trading partner. Agreements such as this one remove barriers, increase investment and create jobs in both countries. 

“We applaud the Treasury’s initiative to begin these discussions, which will facilitate an agreement with Taiwan as contemplated by Congress. In that vein – we also urge continued work with Congress to swiftly pass the bipartisan U.S.-Taiwan Expedited Double Tax Relief Act before the end of the year. 

“Due to its importance as an ally and economic partner, Taiwan has consistently ranked as one of the top treaty priorities in NFTC’s annual Tax Treaty Survey. Survey respondents highlighted permanent establishment, business profits, and reducing withholding rates on royalties as primary areas for consideration in a potential agreement, and we hope the Treasury considers addressing all of these issues as part of their negotiations.”

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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 Applauds Commerce and State for Modernizing Controls on Spacecraft Exports

Posted on by Marshall Lane

WASHINGTON DC -In response to yesterday’s announcements that the Commerce Department’s Bureau of Industry and Security (BIS) and State Department’s Directorate of Defense Trade Controls (DDTC) are proposing rules that modernize export controls on certain space-related items and technologies, streamline exports to key trading partners including 40 allies, and further facilitate support for NASA projects, National Foreign Trade Council (NFTC) Vice President for National Security Policy Jeannette Chu released the following statement:

“NFTC applauds the administration’s support for the U.S. space industrial base and companies involved in space commercialization. These rules underscore the criticality of global competitiveness and commercial viability to national security. Thoughtful, targeted and timely changes like these to our export control system are crucial to maintaining U.S. technology leadership in the face of rising geopolitical tensions. As we respond vigorously to threats from foreign adversaries, we must also ensure that our regulatory and interagency processes provide consistent and coherent pathways that ensure America’s  global competitiveness and national security.”

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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 Applauds Commerce Department for Stepping Up for American Businesses with New Digital Trade Initiatives

Posted on by Joe Locher

WASHINGTON DC – In response to today’s announcement by the U.S. Commerce Department’s International Trade Administration (ITA) of new digital initiatives, including training for commercial diplomats overseas and new annual monitoring of digital trade opportunities and barriers in their Country Commercial Guides, National Foreign Trade Council (NFTC) President Jake Colvin released the following statement:

“We applaud the Commerce Department for stepping up to support the success of American businesses and workers in the global digital economy. We encourage ITA to use its platform to call out significant digital barriers to U.S. exports, including local content requirements, and for leadership and attachés to address them head-on, helping American businesses of all sizes succeed globally.

“Today’s announcement responds to the desires of the overwhelming majority of Americans looking for strong U.S. global technology leadership. Over 80% of American voters agree that it is important for the United States to develop a digital trade agenda that helps American small businesses and workers effectively compete in overseas markets and are concerned that foreign regulators are discriminating against U.S. businesses to protect their markets from American competitors.”

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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.

New Polling Shows Americans Overwhelmingly Want Stronger U.S. Global Leadership on Technology and Artificial Intelligence

Posted on by Veronica Berkshire

WASHINGTON DC – The National Foreign Trade Council (NFTC) today released new polling conducted by Morning Consult that finds American voters want the United States to play a larger global leadership role on technology and innovation issues. The first-of-its-kind polling on voter views on global technology and AI leadership also revealed that voters are concerned the United States is falling behind China on innovation and that other countries are unfairly targeting U.S. tech workers and businesses.

With less than two months before the election, the NFTC sent a letter to both the Harris-Walz and Trump-Vance campaigns today sharing the newly released polling data. Both Presidential candidates have recently addressed the need to champion U.S. technological and AI innovation at home and abroad in debates and speeches, though neither has unveiled policy details on how they plan to strengthen American leadership on these issues.

“Now more than ever, promoting American workers’ interests and the economic prosperity they generate requires a commitment from our leaders to reinvigorate U.S. global technology leadership,” NFTC President Jake Colvin writes in the letter to both campaigns.

Key findings from the Morning Consult Poll include that:

  • 71% of voters agree that the U.S. is falling behind China when it comes to technology innovation.
  • 74% of voters indicate that foreign regulators, like from the European Union, should not target U.S. companies while advantaging their own domestic competitors.
  •  83% of voters agree that it is important for the United States to develop a digital trade agenda that helps American workers enter and effectively compete in overseas markets.
  •  82% of voters are concerned that foreign regulators are discriminating against U.S. businesses to protect their markets from American competitors.
  • 86% of voters say it is important for the U.S. to have a leadership role in writing the global rules for technology.
  •  Large majorities of Republicans (83%) and Democrats (76%) believe that the United States has taken a significant step back in its global leadership. 79% of Americans are concerned that this lack of leadership benefits China.

“Restoring America’s global technology leadership presents a unique opportunity to unite the country around a vision that is popular with Democrats, Republicans and Independents,” Colvin added.

Visit HERE for Morning Consult polling Memo

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The full text of the letter sent to the Harris-Walz and Trump-Vance campaigns follows:

As the pre-eminent business association dedicated to international trade, investment and economic policy issues, we are writing to bring to your attention the clear interest of the American people in accelerating U.S. global leadership on technology and Artificial Intelligence (AI) to promote and defend U.S. economic interests abroad and strengthen America’s national security.

For over forty years, American technology innovation has spurred the development of the U.S. economy from the birth of the internet to AI. According to Bureau of Economic Analysis data, America’s innovative entrepreneurs lead the global digital economy, supporting $1.24 trillion in employee compensation, over 18 million jobs, and generating $3.70 trillion in digital economy gross output.

In response to America’s success, foreign governments from Europe to Asia, including China, are pursuing discriminatory digital policies designed to hold U.S. businesses and their workers back. Digital protectionism abroad throttles American growth and innovation, putting U.S. jobs, competitiveness, and national security at serious risk.

Now more than ever, promoting American workers’ interests and the economic prosperity they generate requires a commitment from our leaders to reinvigorate U.S. global technology leadership. U.S. leadership is essential to enable access to international markets for American small businesses, farmers, ranchers, service companies and manufacturers, who rely on the global reach of a range of innovative U.S. technologies to succeed.

The American electorate agrees and understands that our future prosperity will be defined by technological innovation. Voters across the United States support strong U.S. global technology leadership that empowers services created by American innovators and workers and aids small businesses’ access to new markets.

Newly released polling from Morning Consult shows that large majorities of Americans desire greater focus on fostering our technological strengths.

The polling found that:

  • 71% of voters agree that the U.S. is falling behind China when it comes to technology innovation.
  • 74% of voters indicate that foreign regulators, like from the European Union, should not target U.S. companies while advantaging their own domestic competitors.
  • 83% of voters agree that it is important for the United States to develop a digital trade agenda that helps American workers enter and effectively compete in overseas markets.
  • 82% of voters are concerned that foreign regulators are discriminating against U.S. businesses to protect their markets from American competitors.
  • 86% of voters say it is important for the U.S. to have a leadership role in writing the global rules for technology.
  • Large majorities of Republicans (83%) and Democrats (76%) believe that the United States has taken a significant step back in its global leadership. 79% of Americans are concerned that this lack of leadership benefits China.

These results reflect that Americans take pride in the fact that digital-led innovation is an engine of growth. Americans understand that digital exports are inextricably tied to our economic security.

Restoring America’s global technology leadership presents a unique opportunity to unite the country around a vision that is popular with Democrats, Republicans and Independents.

Next year will offer a fresh chance to enhance America’s global economic leadership to strengthen our national security and contribute to the prosperity of all Americans. We ask that you prioritize the importance of American-led digital innovation and firmly commit to stand up for American job creators and workers on the world stage, both as you present your views to voters this fall and as you prepare the policies that your administration would pursue.

We welcome the opportunity to meet with you to discuss these issues.

Sincerely,

Jake Colvin

President

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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 Dr. Okonjo-Iweala’s Interest in Serving Second Term as WTO DG

Posted on by Veronica Berkshire

WASHINGTON DC – National Foreign Trade Council (NFTC) Board Chair Susan Schwab and President Jake Colvin today issued a statement following the announcement that Dr. Okonjo-Iweala would be interested in serving a second term as World Trade Organization (WTO) Director General (DG):

“Dr. Okonjo-Iweala has been a steady and thoughtful leader for the World Trade Organization during a period of significant geopolitical and economic upheaval. She has overseen important initiatives to address trade facilitation and supply chain challenges during the pandemic, the continuation of the customs duty moratorium on electronic transmissions, as well as progress on fisheries subsidies, joint statement initiatives and organizational reform, which demonstrate how the organization can respond to the need for an effective rules-based trading system,” said NFTC Chair Susan Schwab.

“Under Dr. Okonjo-Iweala’s direction, we have seen evidence of the critical role the WTO can play in harnessing the power of trade to meet today’s challenges,” said NFTC President Jake Colvin. “The WTO would be well-served by her continued leadership.”

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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: 301 Tariffs Have Not, and Will Not, Address Underlying Problems in China

Posted on by Veronica Berkshire

WASHINGTON DC – National Foreign Trade Council (NFTC) Vice President Tiffany Smith today issued a statement following the announcement by USTR of additional tariffs on imports from China under Section 301:

“Today’s announcement that the Biden Administration is moving forward with increased and expanded Section 301 tariffs on imports from China continues a disappointing trend and is a regrettable move in the wrong direction. 

“Over the last six plus years, U.S. importers and consumers have paid $221.11 billion in extra costs as a result of Section 301 duties. According to data from the Tax Foundation, these tariffs have created an average annual tax increase on every U.S. household of $625 at a time when Americans continue to deal with the effects of years of record high inflation.

“It’s also important to remember that Section 301 tariffs were put in place to make it easier for U.S. companies to compete internationally by addressing a very specific set of actions by China relating to intellectual property protection. It is unclear how additional tariffs like those announced today will solve a problem that six years of tariffs have not been able to address.

“Rather than unilaterally adding new tariffs and continuing to drive up costs for consumers, the Biden Administration should be focusing on working with like-minded allies and trade partners to eliminate the underlying structural issues in China that these tariffs were intended to solve.” 

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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.

Study: Weakening De Minimis Would Require Billions in New Congressional Spending

Posted on by Veronica Berkshire

New Oxford Economics study estimates that leading de minimis bills would require up to $3.2 billion in new Congressional Appropriations, the equivalent of nearly 40,000 new CBP officers

(Washington D.C.) – Oxford Economics released a study today showing that implementation of the leading legislation aimed at weakening the de minimis exemption would require billions in new Congressional spending each year. The de minimis exemption is a long-standing feature of U.S. law that allows low-value goods (under $800) to come into the US without paying import taxes that cost the government more to collect than they raise. The study found that HR 4148 (Rep. Blumenauer’s proposal) would cost the government $3.2 billion in 2025 alone, or the equivalent of 39,000 CBP officers. HR 7979 (Rep. Murphy’s proposal) would cost the government $1.6 billion in 2025 alone, equivalent to the cost of 20,000 officers.

These increases would be recurring expenses that would require new appropriations from Congress. The study notes that the need for additional staff is “exacerbated by the fact that CBP is already short by over 4,800 officers relative to what the agency’s Workload Staffing Model (WSM) has determined as necessary to accomplish the Office of Field Operations (OFO) current mission, as reported to Congress.” This would mean that CBP would face the choice between using its resources to collect a limited amount of revenue on low-value imports or using such resources to focus on other key missions at U.S. ports of entry, such as targeting, inspecting, seizing, and issuing penalties.

The study concludes that “rolling back the de minimis provision would considerably increase costs for consumers and small businesses, while costing the government considerably more than the revenue it is expected to raise.”

Key findings from the Oxford Economic report released today:

  • Rep. Blumenauer’s proposal would cost the CBP $3.2 billion in 2025, while generating $627 million in revenue in that year according to the CBO, implying that the bill would result in a large net cost to taxpayers.
  • Rep. Murphy’s proposal would also cost more than it brings in. The Oxford report estimates that CBP would need to spend an additional $1.6 billion in 2025 to implement this bill, which would only raise $1.0 billion in revenues during that same year.
  • These amounts would require new appropriations, as CBP does not retain the revenue it collects.
  • The elimination of the de minimis threshold for some US imports would inevitably slow customs operations, increase paperwork, and reduce CBP productivity.
  • Under Rep. Murphy’s proposal, affected goods will see a 55% price increase for end users. This is expected to affect 330 million packages in 2025.
  • Under Rep. Blumenauer’s proposal, affected goods will see a 40% price increase for end users. This is expected to affect 646 million packages in 2025.
  • The report also points out that de minimis volume, according to experts, will be routed into the postal environment, where there have been significant enforcement challenges.

The Oxford Economics study adds to other recent research on the increased cost to consumers and taxpayers of degrading de minimis. In June, economics professors from Yale and UCLA published a study that found that degrading de minimis would be a regressive tax on low-income consumers, disproportionately tax minority households, and result in a 12 percent tax increase for America’s poorest neighborhoods where families are struggling with inflation and rising costs.

This week, The American Action Forum (AAF), a think tank led by former Director of the Congressional Budget Office Douglas Holtz-Eakin, also released a study showing that eliminating de minimis would result in $8 billion to $30 billion in additional annual costs that would eventually be passed on to consumers and would harm small businesses.

Read more about how de minimis benefits U.S. businesses and consumers 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.