Category: Press Releases and Statements

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.

NFTC Welcomes USTR Action Against Canada’s DST

Posted on by Veronica Berkshire

WASHINGTON DC – National Foreign Trade Council (NFTC) Vice President Tiffany Smith today issued a statement following the United States Trade Representative’s (USTR) request for United States-Mexico-Canada Agreement (USMCA) dispute-settlement consultations in response to Canada’s discriminatory digital service tax (DST):

“Today’s action is a critical first step in pushing back against the proliferation of discriminatory digital policies and other similar taxes that are unfairly targeting U.S. companies.

“Canada’s decision to unilaterally implement its DST undermines the good-faith work that countries are engaged in to reach a more durable international consensus in the Inclusive Framework Two Pillar Solution.

“NFTC commends the Biden-Harris Administration for taking action today to defend American interests. It is a strong signal that the United States will not tolerate policies by any country that unfairly disadvantage U.S. businesses and such an action will be met with a strong response.

“We once again urge the Canadian government to reconsider the implementation of their DST and fully commit to the process of reaching a consensus-based international solution at the OECD, and ask the Biden-Harris Administration to continue to prioritize this issue until it is resolved.”

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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 Statement on WTO E-Commerce Text

Posted on by Veronica Berkshire

WASHINGTON DC – National Foreign Trade Council (NFTC) President Jake Colvin today issued a statement following the release of a statement and “stabilized text” by negotiators of a World Trade Organization e-commerce agreement:

“The release of a draft WTO e-commerce agreement text sends an important signal of the WTO’s potential to help write new global rules for the digital economy, but it’s also a clear example that other countries will step into a leadership vacuum when the United States steps away.

“Importantly, the agreement would create a durable prohibition on customs duties on electronic transmissions. The text also seeks to improve alignment on digital trade facilitation, cybersecurity, and data privacy, though there’s more work to be done to ensure that those provisions are workable and promote open and fair access to the global digital economy.

“But the fact that other major economies felt emboldened to move on digital trade without the United States is extraordinary. This announcement ought to be a canary in the coal mine for the Harris and Trump campaigns about what happens in the absence of assertive U.S. global economic leadership. If the United States does not take a leadership role in driving the development of rules for the digital economy, other countries will step in.

“There’s an acute need for the United States to engage in some fresh thinking to cement U.S. global technology leadership for the future.”

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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 Calls for Strong U.S. Response to Canada’s “Ill-Advised” Digital Services Tax

Posted on by Marshall Lane

Washington D.C. – National Foreign Trade Council (NFTC) President Jake Colvin today issued a statement following passage by the Canadian Parliament of a bill implementing a Digital Services Tax (DST), which is expected to become law imminently:

“Yesterday’s passage of Canada’s retroactive and discriminatory DST legislation is deeply disappointing. NFTC has repeatedly stated that this ill-advised step reflects fundamentally unwise tax policy and unfairly targets a broad range of American companies. As OECD Pillar One negotiations are still underway, this undermines the collaborative, good-faith work that other countries are engaged in to reach a more durable international consensus on digital economy taxation that avoids a patchwork of country-specific DSTs.  

“The enactment of the DST is the latest in a troubling trend of actions taken by the Canadian government directed toward U.S. companies. 

“The Biden Administration has repeatedly expressed to Canada – to no avail – that it has concerns with fiscal policies, including the DST, that single out American companies while excluding national firms and indicated that, if Canada adopted a DST, USTR would examine all options, including under our trade agreements and domestic statutes.

“The time for action has arrived. With the DST on the verge of being signed into law, we are calling on Ambassador Tai to lead a strong U.S. response that holds Canada accountable to its trade obligations and defends the interests of U.S. companies.”

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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.

Brad Wood Joins NFTC as Senior Director for Trade and Innovation Policy

Posted on by Veronica Berkshire

Washington D.C. – The National Foreign Trade Council (NFTC) announced that Brad Wood has joined the NFTC as Senior Director for Trade and Innovation Policy.

He will serve as NFTC’s lead on policy areas including environment, health, frontier technologies and intellectual property. He will also lead an effort to further deepen the Council’s relationships with the diplomatic community and bolster engagement in North America and the Indo-Pacific.

Most recently Brad served for more than a decade at the Canadian Embassy, where he advanced U.S.-Canada cooperation in support of open trade and an integrated North American market.

“Brad is going to be a great addition to the NFTC team,” said NFTC President Jake Colvin. “ His deep network of relationships throughout the hemisphere, expertise on trade and familiarity with companies’ integrated North American operations will be an asset as we help our members prepare for what’s on deck following the election.”

Brad’s full bio can be found below.

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Brad Wood
Senior Director, Trade and Innovation Policy

Brad Wood is Senior Director for Trade and Innovation Policy at the National Foreign Trade Council, the leading business association dedicated solely to advancing the interests of U.S. companies in international commerce.

Brad previously served in consecutive roles at the Embassy of Canada where he was most recently the Trade Program Manager for Innovation and Industrial Policy and the U.S. representative for Innovation, Science and Economic Development Canada. In this capacity Brad advanced Canada-U.S. cooperation bilaterally and with third countries, and worked with the Administration, Congress and business sector to ensure policies support open trade and the integrated North American market.

Prior to the Embassy, Brad worked in several capacities for the Government of Canada in Ottawa where he shaped international policy priorities, coordinated appropriations, mitigated technical barriers to trade, and represented Canada internationally, including at the World Trade Organization.

Brad holds a Master’s in International Trade from the University of Saskatchewan and a Bachelor of Business Administration with an economics double major from Brandon University.

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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.

U.S. Business Clamoring for More Tax Treaties

Posted on by Veronica Berkshire

Washington D.C. – The National Foreign Trade Council (NFTC) today released the 2024 Tax Treaty Survey.

The survey, which was answered by tax professionals from NFTC member companies, asked businesses to rate their tax treaty priorities around the world.

“Companies value certainty and avoidance of double taxation, which is why Tax Treaties are so crucial,” said Anne Gordon, NFTC Vice President for International Tax Policy. “As countries around the world elect new leaders and policies change, treaties provide companies with the certainty they need to make long term investment plans and succeed in global markets. Continuing to vigorously pursue treaties also strengthens the U.S. position as a global leader and allows us to defend our interests in other markets.”

Highlights of this year’s survey include:

  • Brazil was once again identified as the top priority country for respondents.
  • For Brazil, Transfer Pricing was identified as the greatest concern, followed by Mutual Agreement Process (MAP); Business Profits, and reducing withholding rates on royalties.
  • Ireland, Israel, Malaysia and Saudi Arabia, Switzerland were also listed as high priority countries for the business community.
  • In total, respondents requested treaties with 32 countries.

Read the full results here.

An infographic of the most requested countries can be found 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.