Category: Press Releases and Statements
U.S. Business Community Announces Formation of the Coalition for Green Trade
Coalition founded to Support Environmental Goods Agreement Launch
July 9, 2014
Today the U.S. business community announced the formation of the Coalition for Green Trade, composed of a broad range of associations and companies doing business in the United States who seek to remove barriers to global trade in environmental technologies.
The purpose of the Coalition is to educate policymakers and the public on the importance of lowering trade barriers to environmental technologies, and to advocate for the timely negotiation of an ambitious Environmental Goods Agreement (EGA) under the World Trade Organization (WTO).
The Coalition is co-chaired by the National Association of Manufacturers (NAM), National Foreign Trade Council (NFTC), and the United States Council for International Business (USCIB), and composed of a steering committee that also includes the Business Council for Sustainable Energy, Coalition of Service Industries, Emergency Committee for American Trade, Information Technology Industry Council, Institute of Scrap Recycling Industries, National Electrical Manufacturers Association, Semiconductor Industry Association, Solar Energy Industries Association, and U.S. Chamber of Commerce.
“It is critical that the EGA negotiations substantially broaden the list of 54 goods agreed upon by the APEC forum in 2012 in order to more accurately reflect the substantial breadth and significant growth in the green goods sector,” said Jessica Lemos, director of international trade policy at the NAM. “The NAM looks forward to working with our U.S. and foreign negotiators and businesses toward a strong result that will grow this sector, manufacturing and jobs.”
“EGA is important in its own right, and can also act as a stepping stone to lower tariffs in other sectors and value chains associated with environmental technologies,” said Eva Hampl, Director, Investment, Trade and Financial Services at USCIB. “A high-quality agreement would advance global innovation and be flexible to permit new entrants and commitments to keep pace with new technologies.”
The first round of EGA talks are scheduled to begin this week in Geneva. Representatives from NAM, NFTC and USCIB are leading a U.S. business delegation to participate in events and meetings on the sidelines of the official negotiations.
“Negotiators have an opportunity to produce a meaningful agreement that is good for economic development and for the environment,” said Jake Colvin, Vice President for Global Trade Issues at NFTC. “It’s also a chance to demonstrate that the WTO can be nimble, and can address emerging concerns of interest to global business and development communities.”
All of the steering committee members of the coalition joined business associations from around the world to release a global industry letter in support of the EGA initiative.
For more information contact:
Nicole L’Esperance, the Fratelli Group, for NFTC: nlesperance@fratelli.com or 202-822-9491
Jamie Hennigan, for NAM, at jhennigan@nam.org or 202.637.3090
Jonathan Hueneke, for USCIB: jhueneke@uscib.org, or 202-703-5043
In Geneva, NFTC Applauds Launch of Environmental Goods Agreement Talks
In response to the announcement by 14 major trading partners of their intention to negotiate an agreement to eliminate tariffs on environmental technologies under the umbrella of the World Trade Organization, NFTC Vice President for Global Trade Issues Jake Colvin — who is in Geneva for the launch along with other global businesses and associations — released the following statement:
“NFTC applauds today’s launch of talks towards an Environmental Goods Agreement. The green goods initiative is a chance to show how trade policies can address a pressing global challenge and improve environmental outcomes.
“While eliminating tariffs is often thought of as a concession in trade agreements, this initiative provides an opportunity to flip that thinking. Countries who join up and agree to cut tariffs will lower the cost of adopting green technologies.
“The EGA is also a chance to demonstrate that the World Trade Organization can serve as a nimble forum to negotiate new trade commitments that benefit business and the global good.
“NFTC commends the group of 14 negotiators for this announcement. We want to recognize President Obama and Ambassador Froman for their leadership in emphasizing the economic and environmental benefits of this initiative. We look forward to working with the U.S. Government and other economies to advance an ambitious agreement “
About the NFTC
NFTC is Celebrating our New Century in 2014! Details at www.nftc.org – 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:
Global Business Supports an Ambitious and Rapid Conclusion to an Environmental Goods Agreement at the World Trade Organization
Global Business Roundtable explores how an Environmental Goods Agreement can advance trade and environmental policies
NFTC Expresses Concern About Swedish Tax Proposal on Corporate Taxation
Washington, DC – On Thursday, June 26, National Foreign Trade Council (NFTC) President Bill Reinsch sent a letter to Swedish Minister for Finance Anders Borg and Minister for Enterprise Annie Lööf expressing concern about the proposal to introduce a new system for corporate taxation recommended by the Swedish Committee on Corporate Taxation.
In the letter, Reinsch wrote:
“We are writing to express our concern about the proposal to introduce a new system for corporate taxation recommended by the Swedish Committee on Corporate Taxation. As we understand it, the Committee’s proposal, which replaces the existing rules limiting the deduction of interest expense, consists of two parts:
- Withdrawing the deduction for ‘financial costs’; and
- Substituting this with a standard deduction for all financial costs – a ‘finance allowance’ – at a rate of 25 percent of net taxable profit.
“To finance these changes, the Committee proposes that the deductibility for existing losses from previous years is reduced to 50%.”
The “financial costs” changes will favor equity financing over debt financing to the detriment of companies that choose debt-based financing for its flexibility. The “financial allowance” would limit interest deductibility and penalize companies in cyclical industries that may be unable to deduct the true economic cost of an investment. The retrospective reduction in the net operating losses would result in the disallowance of existing losses and could have an adverse effect on company balance sheets.
The “financial costs” changes will favor equity financing over debt financing to the detriment of companies that choose debt-based financing for its flexibility. The “financial allowance” would limit interest deductibility and penalize companies in cyclical industries that may be unable to deduct the true economic cost of an investment. The retrospective reduction in the net operating losses would result in the disallowance of existing losses and could have an adverse effect on company balance sheets.
Reinsch continued:
“Our members believe that if this proposal is enacted in its current form, it could have a very serious adverse effect on inward investment into Sweden, which for many years has been a favored investment location because of its stable tax regime.
“…We have sympathy with the aim of curbing the most aggressive tax practices in this area. However, these proposed measures to combat excessive interest deductions, and the 50% reduction of historical NOLs calls into question the predictability and stability of Swedish tax policy. Additionally, since such a system does not exist in any other country, the risk of international double taxation of Swedish companies will increase, and ultimately could make Sweden an ‘outsider’ among countries seeking active business investment. Furthermore, it is precisely this lack of coordinated action that the OECD Base Erosion and Profit Shifting (‘BEPS’) project is intended to prevent.
“We believe that these proposals should be withdrawn. We encourage you to consider other types of proposals that will not have such a de
trimental impact on foreign investment into Sweden. Sweden has always in the past made an effort to provide an attractive investment environment.”Click here to read the full letter.
About the NFTC
NFTC is Celebrating our New Century in 2014! Details at www.nftc.org -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 is Celebrating our New Century in 2014! Details at www.nftc.org -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 VP Details Importance of Tax Treaties to U.S. Competitiveness in Testimony Before the Senate Foreign Relations Committee
Washington DC – National Foreign Trade Council (NFTC) Vice President for Tax Policy Cathy Schultz today testified before the Senate Committee on Foreign Relations on the ratification of the pending tax treaty protocol with Spain and the tax treaty with Poland.
In her testimony, Schultz stated:
“As global competition grows ever more intense, it is vital to the health of U.S. enterprises and to their continuing ability to contribute to the U.S. economy that they be free from excessive foreign taxes or double taxation and impediments to the flow of capital that can serve as barriers to full participation in the international marketplace. Foreign trade is fundamental to the economic growth of U.S. companies. Ninety-five percent of the world’s consumers are outside of the United States. Tax treaties are a crucial component of the framework that is necessary to allow that growth and balanced competition.
“This is why the NFTC has long supported the expansion and strengthening of the U.S. tax treaty network and why we recommend ratification of the items before you today.
“… The Protocol and Tax Treaty improve conventions that have stimulated increased investment, greater transparency and a stronger economic relationship between our countries. The Spanish Protocol lowers the withholding rates for dividends, interest, and royalties. We are pleased that the Spanish Protocol provides for mandatory arbitration. The Polish Tax Treaty lowers the withholding rates for dividends, interest and royalties. The Polish Tax Treaty also includes a limitation on benefits (LOB) provision that will help stop treaty shopping through Poland.
“We thank the committee for its prior support of this evolution in U.S. tax treaty policy, and we strongly urge you to continue that support by approving the Tax Treaty and Protocol before you today.”
Click here to read Schultz’s full testimony.
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About the NFTC
NFTC is Celebrating our New Century in 2014! Details at www.nftc.org -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 is Celebrating our New Century in 2014! Details at www.nftc.org -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, Other Leading Business Organizations Call for Senate Action on Tax Treaties
Washington, DC – Today, the National Foreign Trade Council (NFTC) joined with other leading business organizations in sending a letter to every U.S. Senator expressing support and calling for action on the bilateral income tax treaties and protocols currently pending before the Senate. Adoption of these tax treaties will ensure U.S. competitiveness abroad and foreign direct investment into the United States. The tax treaties are critical to the U.S. business community, as evidenced by the signatories on the letter who represent companies that employ millions of Americans.
In the letter, the groups wrote:
“The bilateral income tax treaties and protocols pending before the Senate are important to U.S. economic growth and U.S. trade and tax policy. We ask for your support for these treaties and protocols and also ask for expeditious action on them by the United States Senate.
“…For over eighty years, income tax treaties have played a critical role in fostering U.S. bilateral trade and investment while protecting U.S. businesses, large and small, from double taxation of the income they earn from selling goods and services in foreign markets. Tax treaties do so primarily by reducing foreign withholding taxes and otherwise restricting the ability of the foreign treaty partner to tax the income of U.S. taxpayers. On a reciprocal basis, tax treaties reduce U.S. withholding taxes to encourage foreign companies to invest in the United States. Where both countries have the right to tax an item of income under the treaty, the treaty seeks to avoid double taxation by requiring one of the countries to allow a credit for the other country’s tax (or to exempt the income from its own tax). Tax treaties help the U.S. economy by allowing U.S. companies to more efficiently conduct their businesses abroad and by making the United States more hospitable to foreign investment, which creates and sustains millions of American jobs.
“In addition, tax treaties contain administrative procedures for U.S. taxpayers, treaty-partner taxpayers, and the U.S. and foreign taxing authorities themselves to resolve disagreements and to assist in the enforcement of the two countries’ tax laws. In these and other ways, the U.S. network of over sixty bilateral income tax treaties plays a significant role in advancing the economic interests of the United States in the global economy.
“…We encourage prompt consideration and approval of these pending tax treaties and protocols by the United States Senate.”
In addition to the NFTC, the following organization signed the letter: American Chemistry Council, BSA/The Software Alliance, Business Roundtable, Financial Executives International, Information Technology Industry Council, National Association of Manufacturers, Organization for International Investment, Semiconductor Industry Association, Software Finance & Tax Executives Council, Trans-Atlantic Business Council, U.S. Chamber of Commerce and United States Council for International Business.
Click here to read the full letter.
About the NFTC
NFTC is Celebrating our New Century in 2014! Details at www.nftc.org -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 is Celebrating our New Century in 2014! Details at www.nftc.org -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 Celebrates 100th Anniversary, Receives President’s “E Star” Award for Export Service
Washington DC – Today, the National Foreign Trade Council (NFTC) celebrates its 100th anniversary. In honor of its 100-year commitment to expanding U.S. trade, the NFTC received the President’s “E Star” Award for Export Service – the highest recognition any U.S. entity may receive for making a significant contribution to the expansion of U.S. exports. U.S. Secretary of Commerce Penny Pritzker presented the award today at a ceremony in Washington, DC.
“Today marks a huge milestone for the NFTC – 100 years of advocating the importance of an open, rules-based global trading system,” said NFTC President Bill Reinsch. “Being recognized by the Administration for our efforts and receiving the President’s ‘E Star’ Award for Export Service on our centennial day is truly an honor. International trade is critical to U.S. economic growth and job creation, and the NFTC will continue its legacy of promoting the benefits of trade and working to ensure that America’s exporting companies and the millions they employ are able to compete on a level playing field across the globe.”
“As we reflect on our last 100 years today in celebration of our centennial, we are thankful and humbled to receive the President’s ‘E Star’ Award,” said NFTC Vice President for Strategy and Growth James Wilkinson. “The NFTC has worked with the Administration to expand U.S. trade since its start – having been founded under the auspices of President Woodrow Wilson – and we will continue in our efforts to advocate for the U.S. trade agenda.”
In an award notification letter, Secretary Pritzker stated, “The National Foreign Trade Council’s achievements have undoubtedly contributed to national export expansion efforts that support the U.S. economy and create American jobs.”
This “E Star” Award for Export Service is the third major honor for the NFTC in its centennial year. On May 12, the NFTC received the World Trade Week NYC (WTW NYC) 2014 Global Trade Award for its 100 years of significant contributions to the growth of international trade in the New York metropolitan region. On April 2, the NFTC was presented the 2014 Advancing International Trade Award by the National Association of Small Business International Trade Educators International (NASBITE International) – the leading professional society of international trade educators – in honor of its legacy of advancing international trade.
This evening, the NFTC will commemorate its 100th anniversary with a private gala reception at the National Archives. To celebrate its centennial, the NFTC is also convening a yearlong series of programs and activities, such as its This Week in Trade History campaign, to examine the future of trade in the context of key industries, regions and issues. It will hold its 100th World Trade Dinner on December 3, 2014, in Washington, DC.
Join Us in Celebrating our Centennial on Twitter: #NFTC100
About the NFTC
NFTC is Celebrating our New Century in 2014! Details at www.nftc.org – 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 Celebrates World Trade Week
Washington, DC – The National Foreign Trade Council (NFTC) today welcomed the Administration’s recognition of the importance of global trade to the U.S. economy through President Obama’s World Trade Week proclamation.
“Trade is a critical component to boosting U.S. economic growth, and for 100 years, the NFTC has been working to expand U.S. trade by advocating for an open, rules-based global trading system,” said NFTC President Bill Reinsch. “World Trade Week and World Trade Month highlight the importance of expanding U.S. goods and services to markets around the world to American businesses and workers.”
The NFTC kicked off its World Trade Month celebrations last week, in partnership with World Trade Week NYC (WTW NYC). On Monday, May 12, during the kick-off breakfast for WTW NYC 2014, the NFTC received the 2014 Global Trade Award, in honor of its 100 years of significant contributions to the growth of international trade in the New York metropolitan region. Additionally, on Wednesday, May 14, NFTC President Bill Reinsch participated in a Bloomberg Government discussion on the “Politics of Global Trade.” On May 22, the NFTC is co-sponsoring the Maryland District Export Council’s “Celebration of International Trade.”
In addition to receiving the NYC WTW award, on April 2 the NFTC was also presented the 2014 Advancing International Trade Award by the National Association of Small Business International Trade Educators International (NASBITE International) – the leading professional society of international trade educators – in honor of its 100-year legacy of advancing international trade.
On May 28, the NFTC will commemorate its 100th birthday with a gala reception at the National Archives. To celebrate its centennial, the NFTC is convening a yearlong series of programs and activities, such as its This Week in Trade History campaign, to examine the future of trade in the context of key industries, regions and issues. It will hold its 100th World Trade Dinner on December 3, 2014, in Washington, DC.
About the NFTC
NFTC is Celebrating our New Century in 2014! Details at www.nftc.org – 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:
