Category: Press Releases and Statements

NFTC, Leading Trade Associations Call for U.S. Response Upon Enactment of Canada DST

Posted on by Veronica Berkshire

Washington D.C. – The National Foreign Trade Council (NFTC) today joined a number of leading industry associations in calling for a robust response from the United States once Canada enacts its digital services tax (DST).

“As Canada’s Parliament continues to rush forward with its discriminatory and retroactive DST, the United States must be prepared to respond,” said Tiffany Smith, NFTC Vice President for Global Trade Policy. “That is why we are calling on Ambassador Tai to seek dispute settlement consultations under the United States-Mexico-Canada Agreement (USMCA) to ensure Canada complies with its USMCA obligations and to defend the interests of U.S. companies operating in Canada.”

The letter reads, in part: “Although determining the specific economic effect on U.S. firms may not yet be possible given lack of implementing rules, industry is already feeling the effects of Canada’s decision. Many companies have begun the costly and burdensome process of preparing for incipient tax liability. Moreover, as underscored by previous 301 investigations regarding DSTs, the tax will also negatively affect U.S. startups, small businesses, and consumers, in the form of increased prices for critical services on which they rely. In short, firms are already experiencing the harms of the law, and the clear outlines of Canada’s intent now create the basis for a legal response.”

“Canada still has time to avoid creating an unnecessary trade dispute with its closest ally and largest trade partner and jeopardizing the finalization of the Pillar One negotiations at the OECD,” added Smith. “We strongly urge Canada to reconsider implementation of the DST and to continue actively engaging in the OECD Inclusive Framework Pillar One negotiations before violating its obligations by enacting this unilateral measure.”

Along with NFTC, the letter was signed by Coalition of Service Industries (CSI), Computer & Communications Industry Association (CCIA), Consumer Technology Association (CTA), Engine, Information Technology Industry Council (ITI), Software & Information Industry Association (SIIA), TechNet, U.S. Chamber of Commerce, and U.S. Council on International Business (USCIB).

Read the full text of the letter 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 IPEF Progress and Calls for Further Efforts to Advance Trade Pillar

Posted on by Veronica Berkshire

WASHINGTON DC – National Foreign Trade Council (NFTC) Vice President for Global Trade Policy Tiffany Smith issued a statement following the conclusion of the Indo-Pacific Economic Framework for Prosperity (IPEF) Ministerial meeting in Singapore:

“The signing of the IPEF agreements implementing the Clean Economy and Fair Economy Pillars and the overarching deal is an important step towards making the concept a reality.

“NFTC looks forward to working with the Commerce Department to help advance the goals set out in the supply chain, clean energy and fair trade pillars in order to create more opportunities for U.S. companies of all sizes to bring their goods, services, and know-how to the Indo-Pacific region.

“At the same time, it is disappointing that more progress has not been made under the Trade Pillar to underpin the cooperative efforts under Pillars 2-4 with a set of durable, predictable trade rules that would go even farther in enhancing U.S. leadership and economic engagement in this important region.”

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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 New Canadian Fee for U.S. Streaming Companies

Posted on by Veronica Berkshire

WASHINGTON DC – National Foreign Trade Council (NFTC) Vice President for Global Trade Policy Tiffany Smith today issued a statement follow the announcement that the Canadian Radio-Television and Telecommunications Commission (CRTC) will impose a five percent levy on Canadian revenue from online streaming companies:

“Today’s action by Canada once again raises serious questions about their commitment to the fair treatment of companies headquartered in its closest trading partner and ally as well as its adherence to both the spirit and the letter of the U.S.-Mexico-Canada Agreement (USMCA).”

“This action by the CRTC will compel U.S. streaming services and social media platforms to pay an estimated $200 million per year to fund Canadian content on their platforms.

“This new fee will hurt U.S. creative professionals and related workers and ignores the already significant investments U.S. streaming companies have made in Canada as well as the benefits these global platforms provide.”

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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.

In Senate Testimony, NFTC’s John Pickel Emphasizes Government-Industry Collaboration Is Key to Resilient Supply Chains

Posted on by Veronica Berkshire

WASHINGTON DC – National Foreign Trade Council (NFTC) Senior Director for International Supply Chain Policy John Pickel today testified at a Senate Finance Subcommittee hearing on trade enforcement at U.S. ports of entry.

During the hearing, John stressed the importance of government-industry collaboration in facilitating the secure and efficient entry of legitimate goods into the American economy without adding overly burdensome processes that would make supply chains less resilient.

“Partnership between government and industry to develop policies and regulations that anticipate and respond to supply chain challenges would promote resilience and avoid requirements that could snarl supply chains. Industry should be seen as an ally that can partner with government agencies to ensure the facilitation of entry of legitimate goods to the U.S. economy as well as the enforcement of laws that prevent the entry of illicit and dangerous items.”

His written testimony outlined business community priorities around several key areas, including:

  1. Customs Processes at Ports of Entry;
  2. Importance of Data and Cargo Processing Digitization;
  3. Importance of Trade Facilitation and Adoption of Technology;
  4. Trusted Trader Programs;
  5. Facilitative Treatment for Low-Value Shipments;
  6. Digitization of Border Processes;
  7. Clear Compliance Standards; and
  8. Prioritize Addressing Risk at the Source.

Video of the hearing can be found here and the full testimony 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.

NFTC: Administration’s Long-Overdue Section 301 Report Misses the Mark with New Tariffs

Posted on by Veronica Berkshire

WASHINGTON DC – In response to the Biden Administration’s release of the statutorily-required Section 301 four-year review and the announcement of new tariffs imposed on goods from China, Tiffany Smith, Vice President of Global Trade Policy at the National Foreign Trade Council (NFTC), released the following statement:

“While we welcome the release of the long-overdue Section 301 four-year review and a new exclusion process to provide limited relief to American manufacturers, this announcement is a missed opportunity to move away from relying on tariffs as the tool of choice in our relationship with China.

“This announcement suggests that this Administration continues to believe that imposing unilateral tariffs on imports from China will be effective in swaying Beijing to abandon the array of policies that first led to this investigation and which remain a problem. If tariffs were going to solve these complex issues, they would have done so by now.

“The small improvements are overshadowed by the cost and effects of maintaining old and imposing new tariffs. According to the Administration’s own data, U.S. businesses and consumers have paid over $215 billion in Section 301 tariffs since 2018 with little to show for it, and will now be on the hook to pay even more. 

“Instead of continuing to rely on tariffs, which increase prices for all Americans at a time of record inflation, as a primary policy tool, the Administration should be seeking ways to work with our key trading partners to create real change in China and bring lasting benefits to American producers, exporters and consumers.”

Tiffany Smith is available for further comment on this issue. She can be reached at tsmith@nftc.org.

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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.

At NFTC Foundation Annual Dinner, Congressional Champions, Biden Administration Emphasize Importance of U.S. Global Economic Leadership

Posted on by Veronica Berkshire
WASHINGTON DC – Last week the National Foreign Trade Council (NFTC) Foundation hosted its annual World Trade Dinner and Awards Ceremony in Washington, DC. This year’s dinner honored Representatives Brad Schneider, Kevin Hern, Carol Miller and Adrian Smith and featured remarks from Arun Venkataraman, Assistant Secretary of Commerce for Global Markets, and Director General of the U.S. and Foreign Commercial Service.
The first honorees of the night, Representatives Kevin Hern and Brad Schneider, were recognized with the International Tax Award for reaching across the aisle and working together on a Foreign Tax Credit rule that would have had enormous impacts on American companies.
Congresswoman Carol Miller was recognized with the World Trade Award for her commitment to encouraging U.S. trade leadership, including through the recent introduction of the U.S. Trade Leadership in the Indo-Pacific Act (USTLIPA).
Congressman Adrian Smith, this year’s Trade Leadership for the Digital Age Award honoree, was recognized for his advocacy of strong digital trade provisions, including his support for a resolution outlining the importance of the U.S. digital economy and his longstanding emphasis on the role of digital technologies in supporting agriculture communities.
Arun Venkataraman, Assistant Secretary of Commerce for Global Markets, and Director General of the U.S. and Foreign Commercial Service, closed out the dinner with remarks emphasizing that, “in the face of so much criticism leveled at trade…trade is a force for good.”
The dinner also included remarks from Jake Colvin, President of the NFTC, Leslie Griffin, President of the NFTC Foundation and Susan Schwab, Chair of the NFTC Board of Directors.
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About the NFTC
The National Foreign Trade Council (NFTC) is the premier business association advancing trade and tax policies that support access to the global marketplace. Founded in 1914, NFTC promotes an open, rules-based global economy on behalf of a diverse membership of U.S.-based businesses.

NFTC Applauds Introduction of the U.S. Trade Leadership in the Indo-Pacific Act

Posted on by Veronica Berkshire

WASHINGTON DC – In response to the introduction in the House of Representatives today of the “U.S. Trade Leadership in the Indo-Pacific Act,” National Foreign Trade Council (NFTC) Vice President for Global Trade Policy Tiffany Smith released the following statement:

“NFTC applauds the introduction today of the U.S. Trade Leadership in the Indo-Pacific Act and congratulates its bipartisan cosponsors.

“This legislation reflects strong, bipartisan support for consistent, durable and aggressive U.S. leadership that builds confidence with our allies in the region. Congress has an important role to play in signaling that the United States is committed for the long-term and will work to promote our economic security by deepening economic integration across the Indo-Pacific, creating new commercial opportunities for our companies, farmers, and workers.

“We hope the actions proposed by this legislation will help to inform policymakers about the risks to U.S. security and economic interests of inaction – or insufficient action – and spark more aggressive leadership that can deliver meaningful results for American businesses and workers.”

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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: NTE Report Gives “Free Pass” to Foreign Governments to Discriminate

Posted on by Jake Colvin

WASHINGTON DC – In response to the release of the 2024 National Trade Estimate on Foreign Trade Barriers by the Office of the United States Trade Representative, National Foreign Trade Council (NFTC) President Jake Colvin released the following statement:

“USTR pulled its punches this year, undermining decades of bipartisan efforts to call out the full scope of trade barriers through its annual NTE report and giving a free pass to efforts by foreign governments to discriminate against American companies under a thin veneer of regulating in the public interest.

“Specifically, in failing to call out significant barriers to American e-commerce and digitally-enabled exports, the Biden Administration is wasting an opportunity to stand up for U.S. innovation and inviting discrimination against American companies and workers by our economic competitors.

“By refusing to catalog local content requirements and other key foreign trade barriers, USTR is also willfully ignoring its congressional mandate to identify ‘significant barriers’ to U.S. exports of goods and services, foreign investment and electronic commerce.

“The NTE report is the latest example of deeply misguided efforts by this USTR to erode the standards that have governed decades of aggressive U.S. Government advocacy on behalf of American businesses and workers. America’s global economic competitors cannot be allowed to stand up blatantly discriminatory policies that disadvantage U.S. companies under the pretense of legitimate regulation.

“Ultimately, this shortsighted pullback from our global trade advocacy will threaten American jobs and the U.S. tax base, as foreign competitors and adversaries from the EU to China feel increasingly emboldened to discriminate against a wide range of American interests under the guise of digital regulation, public health or the environment.”

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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 Addition of Turkey to Treasury Agreement on DSTs

Posted on by Veronica Berkshire

WASHINGTON DC – National Foreign Trade Council (NFTC) Vice President for International Tax Policy Anne Gordon today issued the following statement in response to the U.S.-Turkey Joint Statement on a unilateral measures compromise:.

“We welcome the Treasury Department announcement that Turkey has joined Austria, France, Italy, Spain and the UK in agreeing to extend the standstill on Digital Services Taxes (DSTs).

“The success of the OECD process on digital taxation depends on the commitment of countries party to the process to hold off on any measures that might harm a global agreement. We urge other parties to this process to make similar commitments as the deadline for an agreement on Pillar One approaches.”

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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.