Leading U.S. Business Associations Endorse Cuba Travel Bill

Washington, DC – The National Foreign Trade Council (NFTC) and USA*Engage today spearheaded a letter on behalf of the business community, expressing strong support for H.R. 874, the Freedom to Travel to Cuba Act. The letter, which was signed by eight other leading business associations, urged Members of Congress to pass the bill and remove all restrictions on travel by U.S. citizens.

In a letter delivered today to all Members of Congress, the associations stated:

“…The United States should immediately remove travel restrictions and allow Americans to act as ambassadors of freedom and American values to Cuba. From farmers and manufacturers to human rights and religious groups, as well as a large and growing number of Cuban Americans, the American people recognize the unfairness and incongruity of restricting travel to Cuba. It is simply wrong that American citizens cannot travel freely to Cuba but are not restricted by the United States from traveling to places like North Korea and Iran.

“Current policies towards Cuba have clearly not achieved their objectives. Without the support of our allies and the larger international community, U.S. sanctions serve only to remove the positive influences that American businesses, workers, religious groups, students and tourists have in promoting U.S. values and human rights. Sanctions are also blunt instruments that generally harm the poorest people of the target country rather than that country’s leaders.”

 


In addition to the NFTC and USA*Engage, the letter was signed by AdvaMed, the Coalition of Service Industries, the Emergency Committee for American Trade, the Organization for International Investment, the U.S. Chamber of Commerce and the U.S. Council for International Business.


“It is counterproductive to restrict the rights of American citizens to travel to Cuba, and Congress ought to fix this anomaly in U.S. foreign policy,” said NFTC Vice President for Global Trade Issues Jake Colvin. “Reversing the travel ban would act as a catalyst for citizen diplomacy by promoting goodwill and understanding between the people of Cuba and the United States.”

For a copy of the letter, please click here.

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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 policy-makers, 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 world wide.

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 Urges Secretary Vilsack to Increase Sugar Import Quota, Asks Congress to Press for Reform

Washington, DC – The National Foreign Trade Council (NFTC) today sent a letter to U.S. Department of Agriculture Secretary Tom Vilsack, urging him to increase the sugar import quota immediately to alleviate the cost burden on consumers and industrial users. The NFTC also sent a letter to all Members of Congress to request their help in pressing the Secretary to reform U.S. sugar policy without delay.

In the letter addressed to Secretary Vilsack, NFTC President Bill Reinsch wrote:

“As an organization that promotes U.S. exports and the benefits of open trade, the National Foreign Trade Council has long been concerned about the impact of U.S. sugar policy on consumers, businesses and workers. Today, those concerns are heightened by short supplies of sugar and exorbitant prices for consumers and industrial users….

“…Even though world sugar prices are higher than normal, U.S. prices are even higher. This means that the pressure on American consumers could be alleviated if world sugar supplies could be imported freely. But they cannot be: U.S. law sets quotas for sugar imports from some 40 different countries. Any imports in excess of these quotas are subject to an extremely high, normally prohibitive tariff.

“These high tariffs have always been justified as a way of protecting U.S. sugar farmers from low world prices. The rationale was that world sugar prices are so low that our sugar farmers and processors could not survive if they had to sell at the world price. Now, however, world prices are much higher than the historical norm….

“…There is a simple way to alleviate the strain on consumers, businesses and their employees, and it requires no new legislation. You have the ability to increase the tariff rate quota for sugar imports immediately, in any amount you choose. We respectfully urge you to provide immediately for an increase in raw and refined sugar tariff rate quotas that will allow stocks to return to a normal level.”
 

To read the NFTC letter to Secretary Vilsack, click here.
To read the NFTC letter to Members of Congress, click here.

About the NFTC

Advancing Global Commerce for 95 Years – 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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New Study Details Chinese Government Policies to Promote Domestic Renewable Energy Sector & Implications for Foreign Firms

Washington, DC – The National Foreign Trade Council (NFTC) today released a new study, titled China’s Promotion of the Renewable Electric Power Equipment Industry: Hydro, Wind, Solar and Biomass, which examines policies put in place by the Chinese government to promote the development of its renewable energy sector. The study, authored by members of the International Trade Group of Dewey & LeBoeuf LLP, details a series of Chinese government measures that have stimulated demand for Chinese-made renewable energy equipment. These measures include preferential financing; VAT rebates; tax incentives; procurement preferences for Chinese-owned and controlled companies; local content preferences; and R&D subsidies for renewable energy equipment producers. The study also highlights foreign producers’ responses to these measures.

The study, written by Thomas Howell, William Noellert, Gregory Hume and Alan Wolff, chronicles Chinese government policies put in place between 2002 and 2009 to encourage the development of the domestic renewable energy sector, including:

The 2002 Government Procurement Law, which provided that with a few exceptions procurement purchases by government organizations should be limited to domestically-made goods;
  • The National Development and Reform Commission’s (NDRC) 2005 Notice of Requirements for the Administration of Wind Power Construction, which provided that no wind farm could be constructed in China that did not meet a 70 percent local content requirement;
  • The 2006 Renewable Energy Law, which was amended last year to require utilities to purchase all renewable power generated in China;
  • The 2006 Provisional Measures for the Accreditation of National Indigenous Innovation, which provided for a process under which products made with Chinese intellectual property could qualify for “priority” in government procurement;
  • The Medium and Long-Term Development Plan for Renewable Energy in China released by the NDRC in 2007, which triggered a surge of investment in the country’s wind equipment industry;
  • The 2008 Stimulus Package, which required that with respect to stimulus spending, preference be given to domestic products for renewable energy projects; and
  • The 2009 Golden Sun Demonstration Program, which will provide investment subsidies equal to 50 percent of the investment cost for grid-connected solar power systems.
The study puts these policies in context, noting that rising energy consumption coupled with the fact that China’s oil and natural gas reserves will be depleted in two decades at current extraction rates, have made it necessary for the country to develop renewable energy sources. Prior to the implementation of the policies mentioned above, “China imported much of the generating equipment used to construct its hydropower infrastructure, and until very recently China relied heavily on foreign equipment and technology.” Moving forward, “Chinese planners have indicated their intention that eventually most or all of the renewable energy equipment installed in China will be made in China, will be based on Chinese-owned intellectual property, and will embody Chinese-developed standards.”

In addition, the study points out that “although governments in the United States, Canada, Europe and Japan have introduced policies to promote renewable industries, China’s effort is noteworthy for its sheer scale and the speed with which it is being implemented.”

The study concludes by noting, “where questions of market access through trade and investment arise, the policies described above, whether practiced by China or in similar forms by its trading partners, will shape both others’ national policy decisions with respect to trade and investment, as well as emerging global rules on these subjects… Massive investment, major initiatives, and measures affecting trade and investment in a major country always result in substantial changes in trade flows and patterns of investment that might otherwise prevail.”

“While the study makes no findings about whether the Chinese government’s implementation of policies that favor its energy sector violate international trade rules, it does make clear that Chinese firms stand to gain substantially from these measures. The facts the study presents raise serious policy issues for China’s trading partners,” said NFTC President Bill Reinsch. “With strong potential growth in the U.S. renewable energy sector, this is an important emerging issue to watch.”

For a copy of the study, please click here.

About the NFTC

Advancing Global Commerce for 95 Years – 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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CSC Welcomes President’s Continuing Commitment to Export Control Reform

Washington, DC – The Coalition for Security and Competitiveness (CSC) today released the following statement:

“The CSC welcomes the President’s reiteration of his commitment to export control reform. Our system has not been significantly changed in over twenty years and is badly out of date. Updating the system will enhance our security by allowing the government to focus its resources on enforcement against illicit exports of the most critical goods and technologies. At the same time it will enhance U.S. companies’ competitiveness by providing a clearer and more efficient licensing system.

“We particularly appreciate the President’s announcements today on encryption and dual nationals. If implemented as announced, both changes meet the twin goals of enhancing our security and our competitiveness. The President’s remarks were an important step in the right direction. We look forward to the rollout of the comprehensive reform plan in the coming weeks and reviewing the new regulations that will explain in greater detail the changes he announced.”

CSC members include the Aerospace Industries Association, the Association of American Exporters and Importers, the AMT – Association for Manufacturing Technology, The Business Roundtable, the Coalition for Employment Through Exports, the General Aviation Manufacturers Association, the Industrial Fastener Institute, the Information Technology Industry Council, the National Association of Manufacturers, the National Defense Industrial Association, the National Foreign Trade Council, the Satellite Industry Association, the Space Enterprise Council, The Space Foundation, TechAmerica and the U.S. Chamber of Commerce.

About the Coalition:

The Coalition for Security and Competitiveness was launched on March 6, 2007, when it provided President Bush with initial recommendations for enhancing U.S. security and competitiveness through modernization of the export control system. Formed by eight leading associations, the Coalition seeks to modernize the export control system so that America is prepared to meet the security and economic challenges of the 21st century. More information about the coalition can be found online at www.securityandcompetitiveness.org.

NFTC President Urges Congress to Repeal Section 211

Washington, DC – In testimony delivered today before the House Judiciary Committee, National Foreign Trade Council (NFTC) President Bill Reinsch urged Congress to repeal Section 211 of the FY 1999 Omnibus Appropriations Act, which prohibits the United States from honoring trademarks of Cuban origin that were associated with businesses nationalized by the Cuban government in the early 1960s. The repeal of this provision – which is currently included in several House bills – would improve U.S. standing in the international trade community and benefit the American businesses.

“If this provision is maintained in law, its long term impact will be to jeopardize U.S. standing in the global intellectual property debate and to invite retaliation by Cuba, which could jeopardize trademark protection for over 5,000 U.S. trademarks currently registered in Cuba by more than 400 American companies,” Reinsch stated in his testimony. “The provision has no benefits for the U.S. business community and is far more likely to cause significant damage.”

Reinsch noted that Section 211 violates our WTO obligations and a major international treaty, the General Inter-American Convention for Trademarks and Commercial Protection, which requires a mutually honored recognition of intellectual property rights between the U.S. and Cuba. “The only effective remedy is repeal,” said Reinsch. “Repeal would ensure continued U.S. leadership on intellectual property issues by bringing the U.S. into compliance with all existing treaty obligations and by exemplifying high standards of intellectual property protection, including our commitment not to assign trademarks based on political criteria,” Reinsch stated in his testimony.

“The United States has long been a leader in securing intellectual property rights globally. Repeal of Section 211 will help sustain the U.S. position in this regard by providing assurance that American trademarks and trade names will be protected even when held by representatives of governments with which we have difficult relations,” said Reinsch. “In contrast, failing to repeal Section 211 threatens to overshadow the important contributions being made by the Congress and the Executive Branch to a consistent and predictable international intellectual property policy that serves the needs of U.S. business.”

For Reinsch’s full testimony, please click here.

About the NFTC

Advancing Global Commerce for 95 Years – 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 Welcomes 2010 Trade Agenda, Urges Action

Washington, DC – The National Foreign Trade Council (NFTC) today welcomed the release of the Administration’s 2010 Trade Policy Agenda and 2009 Annual Report, and urged the Administration to take action on it without delay. NFTC President Bill Reinsch released the following statement:

“There is a lot to like in the Administration’s trade agenda. We are glad to see strong focus on breaking the deadlock of the Doha Round of trade negotiations, and a recognition of the importance of the pending free trade agreements with Panama, Colombia and Korea.

“We strongly support the Administration’s efforts to support new trade flows in green goods and services, and applaud their desire to find flexible mechanisms to support lower barriers to environmentally-friendly trade.

“We also applaud the Administration for undertaking new initiatives aimed at expanding market access for U.S. goods and services, including the Trans-Pacific Partnership Agreement.

“Though not mentioned in the agenda, we also hope that the Administration will work with the Mexican government to resolve the trucking dispute.

“This is an ambitious and comprehensive trade agenda. Now it’s up to the Administration to close the deal on the pending free trade agreements and to dedicate serious political resources to opening markets and create new, export-oriented jobs.”

About the NFTC

Advancing Global Commerce for 95 Years – 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