Category: Press Releases and Statements

NFTC Applauds President Obama for Announcing U.S. Commitment to Join TPP Negotiations

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Washington, DC The National Foreign Trade Council (NFTC) today released a statement welcoming President Obamas announcement that the United States will join the Trans-Pacific Strategic Economic Partnership Agreement (TPP) negotiations.

The NFTC applauds the president for his leadership in affirming the United States commitment to expanding economic engagement with the Asia-Pacific region, said NFTC President Bill Reinsch. Broadening economic ties with our trading partners in the region is an essential element of the U.S. trade agenda. Deeper engagement will both help to boost the U.S. economy through increased exports and job creation, and advance trans-Pacific economic integration.

The Asia-Pacific region represents the largest export market worldwide, and the United States is the largest or second largest trading partner for every major Asian economy. Joining the TPP negotiations will strengthen and further solidify the United States important economic and commercial ties with some of the most dynamic economies in the world, said NFTC Vice President for Regional Trade Initiatives Chuck Dittrich. The TPP is an ambitious effort and has the potential to become the gold standard for high-quality plurilateral trade agreements.

In a November 4th letter sent to President Obama, U.S. Trade Representative Ron Kirk and Secretary of Commerce Gary Locke, the NFTC urged the president to use the occasion of his historic visit to Asia to move forward with negotiations to join the TPP.

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About the NFTC
Advancing Global Commerce for over 95 Years – The National Foreign Trade Council 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 President Underscores Need for Multilateral Approach to Climate Change During WEF Panel in New Delhi

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Washington, DC – National Foreign Trade Council (NFTC) President Bill Reinsch called on nations to reaffirm the need for a multilateral approach to climate change during a World Economic Forum (WEF) India Summit panel on “Trade and Climate Change: Economic Imperative or Green Imperialism?” in New Delhi this morning. To follow is an excerpt of Reinsch’s remarks:

“There are a lot of challenges here that are surmountable but have to be dealt with one by one by all of us. I think for the Americans and the Europeans in particular, the challenges are first to not only agree to but to implement meaningful emission reduction targets. I think also the challenge is going to be to avoid adding on protectionist measures and trade barriers that are intended to limit imports of carbon-intensive products from countries that perhaps haven’t adopted the targets.

“One way to avoid that of course is if everybody agrees to targets and we have a multilateral approach to the problem. Even in the absence of that though, having those kinds of trade barriers is going to make the achievement of all of our goals a lot more difficult, and one of the things we’re [the NFTC] working very hard on is to try to make sure that that doesn’t become a big impediment as far as the American legislation is concerned.

“In turn, I think the challenges for the developing countries, including India and China, but also many others, are first also to agree to targets that are meaningful and give global confidence that we’re all working together to deal with a global commons problem. And also I think their challenge, where a lot of progress has been made very recently, I think in particular reflected in the statement the Prime Minister made here, is on the intellectual property area.

“I think there is a growing appreciation amongst all parties, particularly in developing countries, that strong intellectual property protection is actually an enhancement to investment, an enhancement to R&D in their countries, and is a way for developing countries to protect green innovation and green technology that are very much going to be the products of India and China and not simply of Europe and the United States. So, I’m optimistic that we’re moving in the right direction on that front although there have been a lot of statements in the past that have suggested that this was going to be a rocky area.”

Reinsch also called on the international community to produce an environmental goods and services trade agreement that will lower tariffs and market-access barriers to green technology.

To view the entire session, please click here or on the image above.

Note: Next Tuesday NFTC Vice President for Global Trade Issues Jake Colvin will testify before the Senate Energy and Natural Resources Committee during a hearing to explore the international aspects of global climate change.

 

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About the NFTC
Advancing Global Commerce for over 95 Years – The National Foreign Trade Council 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 Urges President Obama to Pursue TPP Negotiations

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Washington, DC – The National Foreign Trade Council (NFTC) today urged President Obama to use the occasion of his historic visit to Asia next week to move forward with negotiations to join the Trans-Pacific Strategic Economic Partnership Agreement (TPP). In a letter sent to the president, U.S. Trade Representative Ron Kirk and Secretary of Commerce Gary Locke, NFTC President Bill Reinsch outlined the economic benefits of advancing the negotiations, including the opportunity to increase U.S. exports, generate jobs for America’s workforce and advance trans-Pacific economic integration.

Reinsch wrote the following:

 

“…The NFTC strongly supports deepening ties and expanding the scope of our economic and strategic relations with trading partners in the Asia-Pacific region, starting with the negotiation of a TPP with Singapore, Chile, New Zealand, Brunei Darussalam, Australia, Peru and Vietnam. The TPP is an ambitious effort to craft a high-standard plurilateral FTA spanning three continents.

“APEC economies are among the most dynamic in the world and the nations who have signed on to negotiate this next broader phase of the TPP are those willing to move forward to further reduce barriers to trade and investment. As a stimulus to recover from the global economic crisis and increase U.S. exports and create high quality American jobs, the TPP negotiation is “shovel ready” to begin and sends a strong message to the world that American workers, farmers, ranchers and business will not sit on the sidelines as the rest of the region moves forward with market opening initiatives to assure their nations’ advantage in global supply chains.”

 

In conclusion, Reinsch warned that the parties to the agreement will move ahead with or without the United States, and implored the president to indicate America’s willingness to forge ahead with the negotiations.

To read a full copy of the letter, please click here.
 

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About the NFTC

Advancing Global Commerce for Over95 Years – The National Foreign Trade Council 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 President Calls for Market-Oriented U.S. Sugar Policy Reform

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Washington, DC – During a Capitol Hill briefing hosted by the Cato Institute this afternoon, National Foreign Trade Council (NFTC) President Bill Reinsch urged policymakers to reform U.S. sugar policy to reduce barriers to trade, maximize U.S. exports, enhance the competitiveness of American farmers and encourage our trading partners to expand agricultural market access. Reinsch discussed the deficiencies engrained in the current system, which relies on government-regulated price floors, marketing quotas, and import restrictions, and prevents the sugar market from operating efficiently.

“The NFTC and our member companies are dedicated to creating the conditions for fair and open overseas markets for U.S. products so our economy can generate jobs through exports,” said Reinsch. “U.S. sugar policy, unfortunately, is often at odds with the goal of maximizing U.S. exports.”

He continued, “At the most basic level, all trade negotiations are a series of trade-offs among sovereign nations. Current sugar policy means that our negotiators must defend import quotas and high tariffs at the same time they are trying to get other countries to abolish quotas and reduce tariffs. This inconsistency does not enhance U.S. leadership.”

Reinsch also discussed that as result of U.S. import quotas, our trading partners have limited access to their agricultural markets or delayed opening them. “This has happened in several free trade agreements, including the pending one with South Korea. Our decision to leave sugar out of the FTA with Australia created a precedent that helped keep rice out of the Korea FTA,” said Reinsch.

In addition to underscoring how quotas, trade distorting subsidies and other barriers impact our trade relations with the rest of the world, Reinsch highlighted the cost to U.S. consumers. “All objective studies show the sugar program represents a net cost to our economy. An OECD estimate put that cost at $1.5 billion in consumer costs. This is consistent with a GAO estimate of $1.9 billion in consumer costs, and the U.S. International Trade Commission has estimated the costs of sugar import barriers at just over $1 billion,” he said.

In conclusion, Reinsch stated, “We believe that Congress will eventually need to look at reforms to the sugar program, especially if there is an agreement in the Doha Round of WTO talks. Almost any conceivable world trade deal will require a significant increase in U.S. sugar import quotas, and the program will need to adapt to that. In the short run, there is a step the government could take now to allow increased trade in sugar – temporarily increase sugar import quotas so that developing countries can supply more product into a market that is forecast to be record-tight this year.”

 

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About the NFTC
Advancing Global Commerce for 95 Years – The National Foreign Trade Council 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.

USA*Engage Urges Congress to Refrain from Legislating Additional Unilateral Sanctions, Give Multilateral Negotiations a Chance

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Association Says Proposed Sanctions Will Not Deliver ‘Crippling Blow’ to Iranian Regime

Washington, DC – In advance of House Foreign Affairs and Senate Banking Committee markups of Iran sanctions bills later this week, USA*Engage today urged Members of Congress to refrain from legislating additional unilateral U.S. sanctions against Iran, The association expressed support for the Administration’s efforts to build a multilateral negotiating consensus to engage the Iranian regime to forego the acquisition of nuclear weapons, and pressed policymakers to pass a bipartisan resolution reaffirming the President’s authority to implement a multilateral engagement strategy.

In a letter delivered today to all members of both committees, USA*Engage wrote the following:
 

… For thirty years, unilateral economic sanctions have been have been the principal instruments of U.S. policy towards the Islamic Republic of Iran. Unsurprisingly, the iron law of unintended consequences has characterized that policy. The sanctions have empowered and enriched the ruling regime, stifled ordinary engagement between citizens of the two countries, benefited American companies’ foreign competitors, and provided third countries opportunities for geopolitical game-playing at the expense of U.S. national interests. The record speaks for itself….

… In working with allies, the Administration can avoid these past mistakes. Nonetheless, members of Congress appear set to legislate yet more unilateral sanctions upon Iran – this time by targeting foreign companies in any way connected with the importation of refined petroleum product into Iran. Since Iran currently relies on imported petroleum products to satisfy its highly-subsidized gasoline consumption, proponents of H.R. 2194 and S. 908 assert that unilateral sanctions will deal a “crippling blow” to the Iranian regime. The facts on the ground, however, strongly suggest the opposite…

… The President has the authority to commit the U.S. to whatever array of multilateral sanctions are deemed most able to influence Iran’s decision makers. USA*ENGAGE urges Congress to pass a bipartisan resolution reaffirming the President’s authority to develop a multilateral strategy, based on engagement, best suited to attain actual U.S. national interests and to oppose H.R. 2194, S. 908, and similar bills.

To view a copy of the letter, 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.

AboutNFTC

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.

In Geneva, NFTC and Business Community Leaders Press for Renewed Engagement on Global Trade Agenda

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NFTC Business Delegation Participates in Meetings with WTO Director-General Lamy, Key Negotiating Chairs, Heads of Delegation; Consults on Emerging Trade and Climate Issues

Geneva, Switzerland – Amid a new push to bridge divides in global trade negotiations, a business delegation led by the National Foreign Trade Council (NFTC) and its member companies held meetings Geneva October 19-22 to press for sustained, substantive engagement among major trading partners and a successful conclusion to the Doha Development Round.

While in Geneva, the group met with World Trade Organization (WTO) Director-General Pascal Lamy and other key WTO officials, World Intellectual Property Organization (WIPO) Director-General Francis Gurry, and non-governmental organizations. The delegation also met with heads of delegations, senior officials, and key WTO negotiating chairs, including Ambassadors Mario Matus, Chair of the General Council; Luzius Wasecha, Chair of Negotiating Group on Market Access; David Walker, Chair of the Special Session of the Committee on Agriculture; Guillermo Valles, Chair of the Negotiating Group on Rules; Eduardo Ernesto Sperisen-Yurt, Chair of Negotiating Group on Trade Facilitation; and Manuel A.J. Teehankee, Chair of the Special Session of the Committee on Trade and Environment.

“We are here to underline the commitment of the American business community to a successful conclusion of global trade talks,” said NFTC Vice President for Global Trade Issues Jake Colvin, who represented NFTC on the trip. “At the end of the day,” he continued, “we hope the renewed momentum and focus on substance we observed will lead to greater clarity and ambition across the negotiations.”

In addition to discussing the Doha Round, the delegation spoke with senior officials and NGOs about other key trade issues, such as monitoring of new trade measures, intellectual property rights protection, and trade-related climate policies.

“The WTO has demonstrated value during the global economic crisis, monitoring the rise in new trade-restrictive measures and reinforcing the rules of the trading system,” said Scott Miller, Director, Global Trade Policy, Procter & Gamble, and Chair of NFTC’s WTO Project. “At the same time, there is a real need to conclude the Doha Round, not only for what economies can gain from improved terms of trade, but also to allow the WTO to focus on emerging issues such as climate change and the rise of complex, IT-enabled supply networks.”

On the issue of climate change, the NFTC delegation discussed concerns over the WTO-compatibility of border adjustment measures and free allowances in domestic climate legislation, the role of Geneva-based institutions in the UN Framework Convention on Climate Change (UNFCCC) process, and the importance of early progress on an agreement to lower tariffs and other trade barriers on environmentally-friendly goods and services.

“Reducing tariffs and non-tariff barriers on environmentally friendly goods and services is not just trade for trade’s sake. Lowering green trade barriers would reduce the costs of these goods and services worldwide, help create clean energy jobs, and demonstrate economic and environmental leadership,” said Thaddeus Burns, Senior Counsel for Trade and IP for General Electric and a participant on the NFTC delegation.

This is the NFTC’s first business delegation to Geneva in over a year, designed to gain firsthand knowledge of progress being made on the ground prior to the WTO Regular Ministerial scheduled to begin November 30. The delegation included representatives from a number of NFTC member companies, including General Electric, Johnson & Johnson, Procter & Gamble, Tyco International and Wal-Mart Stores.

“The meetings that will occur over the next month, including the WTO Ministerial meeting scheduled for the end of November, will help determine the path of the WTO and the Doha Round for the foreseeable future,” said NFTC President Bill Reinsch. “Given the important issues at hand, the U.S. negotiating team deserves to be at full strength, and the U.S. Senate ought to move quickly to confirm President Obama’s appointees for Deputy United States Trade Representative as well as other key administration officials responsible for international economic policymaking and negotiations.”
 

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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.

 

Association Letter on Nominees Cabinet posts in the Commerce, Treasury and State Departments, and the Office of the United States Trade Representative

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NFTC Foundation Hosts 95th Annual World Trade Dinner

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Ingersoll Rand CEO Honored with World Trade Award


Washington, D.C. – The National Foreign Trade Council (NFTC) Foundation last night hosted its 95th Annual World Trade Dinner and Award Ceremony at the National Geographic Society in Washington, DC. Keynote remarks were delivered by Peter Seligmann, Co-founder, Chairman of the Board and CEO of Conservation International, who discussed the intersection of business and trade and efforts to mitigate the impacts of climate change.

Seligmann highlighted the efforts of corporations that have demonstrated their commitment to a sustainable future and urged the business community to keep up the momentum as global climate talks advance. “From my perspective, Copenhagen has already been a success because nations around the world are coming together to confront the challenge of climate change,” said Seligmann.

Following Seligmann’s remarks, the NFTC presented its 2009 World Trade Award to Herbert Henkel, Chairman and CEO of Ingersoll Rand Company.

“We know that international trade promotes economic development and political and social stability worldwide. More to the point, we’ve seen how expanded trade leads to tremendous strides in economic growth and new prosperity in emerging markets,” said Henkel in his remarks accepting the award. “We must continue to remind government leaders around the world that global free trade is essential to improving the lives of people in all regions of the world. Clearly, we have a responsibility to do what we can to advocate for free trade and investment not only for the benefit of the billions of people who seek to improve the quality of their lives today but also for the generations that will follow.”

The NFTC’s World Trade Award recognizes individuals who are respected for proven lifetime leadership in building consensus and promoting the benefits of open trade and investment. The Award was established in 1937 by the Dollar Family of San Francisco in memory of Captain Robert Dollar, pioneer in American shipping and world trade and a charter member of the National Foreign Trade Council. In 1938, Cordell Hull, then-Secretary of State, was the first recipient of the Award.

“We are pleased to have an opportunity to honor Herb, and we echo his message that opening markets throughout the world generates growth, prosperity and goodwill,” said NFTC President Bill Reinsch. “It is in this spirit that we urge the president to outline his vision for the U.S. trade agenda and begin taking action to boost U.S. exports and expand opportunities for worldwide American companies and workers.”

The NFTC Foundation dinner was widely attended by policymakers, members of the business community, ambassadors and embassy officials from numerous countries, including Canada, Colombia, Oman, Panama and Switzerland, among many others.


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About the NFTC

Advancing Global Commerce for Over 90 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.

NFTC and USA*Engage Express Disappointment Over House Approval of Iran Divestment Bill

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Washington, DC – The National Foreign Trade Council (NFTC) and USA*Engage today expressed disappointment over the U.S. House of Representatives’ approval of H.R.1327, the Iran Sanctions Enabling Act.

“At a time when the United States and our key allies are engaged in multilateral diplomatic efforts to encourage the Iranian regime to be forthcoming about its nuclear ambitions, the passage of this bill is problematic,” said USA*Engage Director Richard Sawaya. “While we understand that the legislation is a reflection of policymakers’ desire to ‘do something’ with respect to Iran, it undermines the federal government’s ability to conduct foreign policy by granting all 50 states and countless municipalities the right to levy what amount to economic sanctions against Iran.”

NFTC President and USA*Engage Co-Chair Bill Reinsch said, “From a macro perspective, this bill complicates U.S. policy toward Iran, as it calls into question our commitment to the ongoing diplomatic talks. As tempting as it may be for Congress to approve bills aimed at crippling Iran’s energy sector, the reality is two-fold: one, unilateral sanctions are by definition ineffective, and two, this kind of legislation sets a bad precedent. Today the legislation is aimed at Iran, but what happens when a given state decides it should no longer have business ties with another country? It’s a slippery slope.”

In August 2006, the NFTC and eight boards of Illinois public employee pension funds brought suit (NFTC v. Giannoulias) against Illinois over the state’s Act to End Atrocities and Terrorism in Sudan, challenging the constitutionality of the Illinois Act. In February 2007, Judge Matthew Kennelly of the Federal District Court for the Northern District of Illinois ruled that the state’s law was “unconstitutional because the Act [violated] federal constitutional provisions that preclude the states from taking actions that interfere with the federal government’s authority over foreign affairs and commerce with foreign countries.”

The NFTC lawsuit followed the precedent set in the U.S. Supreme Court’s 2000 decision in Crosby v. NFTC, in which the Court struck down sanctions enacted by Massachusetts on Burma. In that decision the Court ruled that if the federal government has enacted sanctions on a country, state and local governments are preempted from imposing sanctions of their own.

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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.
 

Leading Business Groups Issue Principles and Objectives for Export Control Modernization

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Washington, DC – The Coalition for Security and Competitiveness (CSC) today sent key Administration officials a set of principles and implementation objectives to guide the modernization of the U.S. export control system in ways that enhance both national security and U.S. competitiveness. In response to the President’s August announcement, the Coalition sent a letter addressed to National Security Advisor James Jones and National Economic Advisor Lawrence Summers, which laid out their vision for an effective technology control regime for the 21st century.

“We believe changes must be made to the current system to make sure it is aligned with our current security needs and the realities of the global technological environment, and – as a practical matter – operates in a more predictable, transparent, and efficient manner,” the Coalition stated in the letter, which was also sent to Secretary of State Hillary Clinton, Secretary of Defense Robert Gates and Secretary of Commerce Gary Locke.

In their principles for reform, the Coalition recommended that modernization of U.S. export controls should achieve the following:

  • Prevent proliferation of, and access to, our most sensitive and militarily critical technologies by current and potential adversaries;
  • Promote defense cooperation, foreign sales, and interoperability with U.S. partners and allies, consistent with U.S. foreign policy and national security objectives;
  • Support U.S. technological and scientific leadership, while leveraging the benefits of foreign technological innovation; and
  • Strengthen U.S. competitiveness in global technology markets and preserve a cutting-edge industrial base, including a highly-skilled workforce
In addition to outlining principles for modernization, the Coalition also released a set of implementation objectives, which call for developing clear policy criteria and effective decision-making processes for identifying critical technologies whose protection is essential to U.S national security; implementing more efficient approaches to licensing in support of defense and national security programs important to the U.S. government; minimizing controls on items readily available in the global marketplace; rationalizing the export licensing system to reduce costs and administrative process times by ensuring clear lines of agency jurisdiction; and promoting a more effective system of multilateral controls through greater harmonization of controls with key trading partners, among other recommendations.

The letter was sent on behalf of the Coalition’s member associations, which include the Aerospace Industries Association, the Association of American Exporters and Importers, The American League for Exports and Security Assistance, AMT – The Association for Manufacturing Technology, Business Roundtable, the Coalition for Employment Through Exports, the General Aviation Manufacturers Association, the Industrial Fasteners 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.

With regard to next steps, the Coalition has requested an opportunity to brief the NSC/NEC interagency team to provide detailed recommendations that build upon the principles outlined above.

For the full letter, set of principles and implementing objectives, please click here.

 

About the Coalition

The Coalition for Security and Competitiveness was launched on March 6, 2007, with the forwarding to the U.S. government of recommendations for enhancing U.S. security and competitiveness through modernization of the export control system. 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.