Category: Press Releases and Statements

Trade Associations Urge President Obama to Move Forward on Bipartisan U.S. Trade Agenda

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Business Community Leaders Ask President to Highlight Benefits of International Economic Engagement in Upcoming Trade Speech

Washington, DC – The National Foreign Trade Council (NFTC) today, along with five other leading trade associations, wrote President Obama, urging him to use the occasion of his upcoming speech on international trade to discuss the importance of global economic engagement to the growth of the U.S. economy and job and export opportunities for American workers and industries. In addition to NFTC President Bill Reinsch, the leaders of Business Roundtable, the Emergency Committee for American Trade, the National Association of Manufacturers, the United States Council for International Business and the U.S. Chamber of Commerce signed the letter.

“U.S. companies and the millions they employ depend on robust trade and economic engagement with the world to sell the goods they produce and services they provide,” said NFTC President Bill Reinsch. “Taking action to strengthen our economic ties with other nations is vital and overdue, and we hope that President Obama will define and act on his vision of a bipartisan trade agenda in the coming weeks.”

The leaders of the six associations wrote, “At this time, your leadership is essential to start a new dialogue with the American people on how a revitalized bipartisan trade policy, along with domestic-competitiveness initiatives, can promote America’s success and get our economy moving forward again. While we can all cite statistics about how the United States’ exports, imports and investment bolster economic activity here at home, the challenge is to make those facts real for the many Americans who are fearful about losing their jobs and concerned that America can no longer compete successfully in the international economy.”

The business leaders pointed out that the Administration’s dialogue on trade should remind Americans, “domestic initiatives are vital to help restart our economy and create new jobs for our workers.” They also credited the Administration’s early expansion of the trade adjustment assistance program with “helping to ensure that workers have the skills and training to fill those new jobs.” While recognizing the importance of providing assistance to workers in industries dislocated because of trade, they also emphasized that trade and trade agreements are not the major cause of job loss in America.

“As the world’s largest exporter of goods and services that is recording a $21 billion manufactured-goods surplus with our free-trade agreement partners, the United States benefits enormously from international engagement but also faces steep challenges, both from other countries’ barriers and those here at home,” the letter stated. “In order to grow our economy, ensure good-paying jobs for Americans, enhance our national security and renew our country’s leadership position in the world, the United States cannot stand still in the international economic sphere. Rather, we need to revitalize our export and international trade leadership by moving forward actively on multilateral, regional and bilateral market-opening opportunities.”

In addition to pressing for passage of the three pending trade agreements with Colombia, Panama and South Korea, the associations urged the president to pursue “major market-opening agreements with the Asia-Pacific and beyond.” The associations concluded the letter by outlining the costs to the United States if action is not taken on the trade agenda, and requested a meeting with the president to discuss these issues further.

For the full text of the letter, click here.
 

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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.

Visit us at www.nftc.org  and on Facebook.

NFTC Launches Trade and Climate Working Group

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Washington, DC – The National Foreign Trade Council (NFTC) today announced the launch of a new Trade and Climate Working Group, which will focus on the trade- and competitiveness-related aspects of U.S. and global climate policies.

The Working Group will address key policy issues at the intersection of trade and climate change. These issues arise in domestic legislation and international negotiations aimed at curbing climate change and include: ensuring trade-related climate measures in domestic legislation comply with global trade rules; promoting liberalized green trade and U.S. leadership in support of a comprehensive environmental goods and services trade agreement; highlighting the need for strong protection of intellectual property rights to spur the development of new environmental technologies and green jobs in the United States; and advocating an international framework for dealing with trade and competitiveness-related climate measures.

With the recent passage of the American Clean Energy and Security Act of 2009 in the House, the likelihood of Senate action in the fall, and international climate negotiations set to conclude in Copenhagen in December, there are a number of moving parts that could impact the trading system and the global competitiveness of our member companies, said NFTC Vice President for Global Trade Issues Jake Colvin. “The United States has a tremendous opportunity to create new jobs through green trade and the development and deployment of innovative clean technologies, but success depends on the extent to which climate policies are grounded in a rules-based international framework.”

Jeremy Preiss, Vice President, Chief International Trade Counsel for United Technologies Corporation (UTC) and a member of NFTC’s board, will serve as the corporate chair of the new Working Group. The groups goal is to inform policymakers in Washington and elsewhere about the potential impact climate policies may have on the trading system and the need for multilateral agreement on permissible trade-related climate measures, said Preiss. Trade and climate policies must be mutually reinforcing to advance environmental goals and promote the growth of green trade and jobs. If the policies conflict, the threat of a new era of green protectionism grows greater, and trade and the environment could both suffer.

The Working Group, which is open to NFTC board members, is designed to provide opportunities to collaborate on and advance member company interests with respect to trade-and-competitiveness aspects of U.S. and international climate policies.

Representatives from NFTC plan to participate as observers in the Conference of Parties (COP) 15 in Copenhagen this December, the set of international negotiations held under the United Nations Framework Convention for Climate Change (UNFCCC), which are expected to result in an international agreement on climate policies.
 

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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.

Visit us at www.nftc.organd on Facebook.

Business Leaders Call on Administration to Lower Barriers to Green Trade

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Trade Groups Urge ‘Swift Conclusion’ of Environmental Trade Agreement; Advocate Work at OECD, APEC

Washington, D.C. – Leading trade associations, including the National Foreign Trade Council (NFTC), today sent a letter to President Obama strongly urging the Administration to pursue a swift conclusion of a comprehensive Environmental Goods and Services Agreement. The associations asked the president to use a variety of channels to lower trade barriers to green goods and services, including the World Trade Organization (WTO), other economic forums and climate negotiations.

In addition to the NFTC, the letter was signed by groups including the Business Council for Sustainable Energy, the Coalition of Service Industries, the Emergency Committee for American Trade, the Information Technology Industry Council, the National Association of Manufacturers, the Organization for International Investment, the Retail Industry Leaders Association and the U.S. Chamber of Commerce.

The associations wrote, “Lowering trade barriers on green goods and services would be good for the environment and the U.S. economy.” Liberalizing green trade, they continued, “would help create the green jobs that will accelerate recovery of the U.S. economy.”

While the Doha Round of WTO negotiations is one potential forum to pursue an international agreement on green goods and services, the associations noted, “the combined economic and environmental benefits of an agreement warrant the exploration of alternative or complementary efforts. We hope you will investigate the feasibility of either a plurilateral agreement at the WTO or the initiation of negotiations via another forum, balancing the need to capture a significant portion of environmental trade and an ability to enforce commitments with a framework that is flexible enough to permit the rapid conclusion of a deal.”

The trade associations suggested the Administration consider the Forum on Asia Pacific Economic Cooperation (APEC) and the Organization for Economic Cooperation and Development (OECD) as forums to help secure interim commitments in advance of a WTO agreement.

The groups also encouraged the president to promote the utility of lowering trade barriers on green goods and services in international environmental forums, including the United Nations Framework Convention on Climate Change and the Major Economies Forum. The letter also underscores the importance of protecting intellectual property rights in green technologies with respect to stimulating American innovation and creating green jobs.

Finally, the letter also expresses concern over the lack of discussion of global trade in environmentally-friendly goods and services in the House-passed American Clean Energy and Security Act of 2009.

“Emphasizing the importance of an environmental goods and services agreement in domestic legislation would enhance legislative efforts to deliver clean technologies to the developing world. We hope that you and your Administration will work with Congress to generate clear signals of support for lower trade barriers, which can help to reinforce a positive message on lowering green tariffs to the international community,” the associations concluded.

For the full text of the letter, click here.

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.

Visit us at www.nftc.org and on Facebook.

NFTC, USA*Engage and 15 Other Organizations Urge President to Lift Cuba Academic Travel Restrictions

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Washington, DC – The National Foreign Trade Council (NFTC) and USA*Engage today joined academic, cultural exchange and trade groups in sending a letter to President Obama, urging the Administration to lift restrictions on academic travel to Cuba. The letter sent by NAFSA: Association of International Educators and 16 other organizations recommended that academic travel to Cuba be permitted under general license and similarly, that visas be granted to Cubans coming to the United States for academic and cultural exchange.

“We are approaching the start of another academic year in which American students will find their opportunities to study abroad in Cuba to be severely curtailed because of regulations issued by the Bush administration…. we write in support of the very welcome actions that you have taken to begin to chart a new course in U.S. relations with Cuba, and to urge you, as you continue to develop new policies toward the island nation, to restore academic travel between our countries,” wrote the organizations.

“Exchange programs are often highlighted as a critical component of U.S. engagement in the world and have historically been a successful tool in building relations between nations,” they continued. “Cuba currently remains the only country in the world where the United States government restricts study by American students, as well as academic travel by bona fide teachers and researchers.”

In addition to the NFTC, USA*Engage and NAFSA, the letter was signed by organizations ranging from the American Association of State Colleges and Universities and Community Colleges for International Development, to Orbitz Worldwide, the Latin America Working Group and the Washington Office on Latin America.

“A few months ago, the Administration took an important step toward improving relations with Cuba by allowing Cuban Americans to travel and send remittances to Cuba. There are, however, many steps left to take toward significant U.S. Cuba policy reform, and allowing academic travel is chief among them,” said NFTC President and USA*Engage Co-Chair Bill Reinsch.

“American students who study abroad play a key role in sharing U.S. values and perspectives with the rest of the world. Affording U.S. students the opportunity to engage in cultural exchange with Cuba will complement our diplomatic overtures and help promote dialogue, understanding and respect between the two nations,” said NFTC Vice President for Global Trade Issues Jake Colvin.

For a copy of the letter, please click here.

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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.

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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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.

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.

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.

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.

Associations Urge Senate Leaders to Reject House Climate Bill Provisions That Could Negatively Impact Trade Relations

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Washington, DC – The National Foreign Trade Council (NFTC), along with the Emergency Committee for American Trade, the U.S. Chamber of Commerce and the U.S. Council for International Business, today wrote Senate leaders, urging them to refrain from including in their bill certain trade and competitiveness provisions included in the House-passed American Clean Energy and Security Act of 2009.

In a letter to Senate Majority Leader Harry Reid and Minority Leader Mitch McConnell, the four groups wrote:

“We urge the Senate to refrain from including provisions that could negatively impact U.S. relations with key trading partners and disrupt the global trading system. We believe any successful legislation that aims to restrain greenhouse gas emissions must abide by U.S. international trade obligations and should encourage action by other major emitting countries.

“We are concerned that some provisions contained in H.R. 2454, such as those creating the international reserve allowance program and permitting tariffs or “border measures” on carbon-intensive imports, are highly inflexible, and likely to conflict with obligations the United States has undertaken in international trade agreements. In fact, these provisions are already stirring consternation among some of our key trading partners and could trigger a ‘green trade war.’

“Climate change is a global problem that calls for international cooperation, not unilateral ultimatums…. In the midst of a global recession, we agree wholeheartedly with President Obama that “we have to be careful about sending any protectionist signals” in the context of this important legislation.”

To read the full text of the letter, click here.

NFTC President Bill Reinsch and NFTC Vice President for Global Trade Issues Jake Colvin are available for comment. Please contact Jennifer Cummings (jcummings@fratelli.com) at 202-822-9491.

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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.

Visit us at www.nftc.org and on Facebook.

NFTC Expresses Concern Over Shift in India’s Approach to Taxation of Cross-Border Investment

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Washington, DC – The National Foreign Trade Council (NFTC) today expressed concern over arguments being made by Indian revenue authorities that the country is entitled to tax certain capital gains on global mergers and acquisitions taking place outside of the country. In a letter sent by NFTC President Bill Reinsch to Indian Minister of Finance Pranab Mukherjee, the NFTC expressed deep concern over such assertions.

“U.S.-based multinational companies in particular have a history of robust investment in India, where our investors have created significant jobs and wealth. We are writing to express our concern about a recent shift in the approach of Indian revenue authorities towards the taxation of cross-border investment that seems at odds with the efforts of the Government of India to liberalize India’s foreign investment policies,” wrote Reinsch.

Over the past two years, the NFTC and many of its members have noticed that Indian revenue authorities have begun to argue that India is entitled to tax certain capital gains on global mergers and acquisitions taking place outside of the country, particularly in the case of a transfer of shares in a non-Indian company between two non-Indian residents.

In addition, the NFTC letter pointed out, “it seems that the revenue authorities are trying to apply this to already completed transactions (e.g., in the Vodafone – Hutchison matter). Thus, the revenue authorities are seeking to recover the tax from non-resident buyers who, they assert, were required to withhold the tax from the consideration paid to sellers — even if the buyers and sellers have no connection with India. The revenue authorities have sought to support this position with retrospective tax legislation enacted in 2008.”

The letter also noted that Indian tax laws have not been amended in relation to these very commonplace transactions, suggesting, “the new approach is based on a novel interpretation of existing provisions.” Reinsch wrote, “The new approach is novel not only in relation to long-standing Indian interpretation but also compared to generally accepted norms of international taxation. Very few countries seek to tax transfers of shares in foreign companies merely because the companies have underlying assets in country. Such measures are widely regarded as inappropriate due to their extraterritorial scope.”

The NFTC also expressed concern that the new approach taken by the Indian revenue authorities to tax cross-border transactions is undermining the Government’s efforts to liberalize its investment policies and could discourage future foreign investment.

“NFTC Members urge the Government of India to move swiftly to undertake a policy review of whether taxation of the transactions in question is appropriate. If, following such review, the Government of India remains convinced that these transactions should be taxable in India, our Members believe that the necessary changes should be made to the laws with prospective effect only, rather than through retrospective changes in interpretation of current law or application of withholding tax provisions,” Reinsch concluded.

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.

NFTC Statement on Ambassador Kirk’s Speech in Pittsburgh

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Washington, DC – National Foreign Trade Council (NFTC) President Bill Reinsch released the following comment in response to Ambassador Kirk’s speech today in Pittsburgh on U.S. trade enforcement priorities:

“Stronger enforcement is a good thing, and Ambassador Kirk has zeroed in on several of the important areas where there is a lot of work to be done. At the same time, a comprehensive trade policy needs more than one leg. We also need to be actively promoting American products and pursuing trade agreements, both multilateral and bilateral, that will expand trade and thereby help our economy grow and create new jobs. We look forward to hearing about the other legs of the Administration’s trade policy soon.

“In particular, we encourage the Administration to redouble efforts to conclude a global trade deal and enact outstanding bilateral trade agreements, as well as to pursue innovative strategies that would unlock new markets for U.S. businesses and workers. For example, the United States should take a leadership role in promoting trade in green technologies and introducing new ideas into the global trading system like a next-generation information technology agreement.”

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.

NFTC Applauds Cuba Provisions in FY2010 Appropriations Bills

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Washington, DC – The National Foreign Trade Council (NFTC) today applauded members of the House and Senate Appropriations Committees for including provisions in the FY2010 financial services spending bills that would help to normalize U.S.-Cuba agricultural trade. NFTC Vice President for Global Trade Issues Jake Colvin released the following statement:

“The language included in the spending bills would represent a small but important shift in U.S.-Cuba policy that would benefit U.S. farmers, businesses and workers. By allowing U.S. farmers and other exporters to accept payment at the time of delivery, appropriators seek to remove an unnecessary barrier and open the door to increased exports to Cuba. We strongly encourage both chambers to include the provisions in the final version of the legislation.”


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.

Trade and Industry Leaders Urge President Obama to Reform Outdated U.S. Export Control System

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New Policies Needed to Maintain U.S. Competitiveness and Strengthen National Security
Washington, DC – The National Foreign Trade Council (NFTC) and the Coalition for Employment Through Exports (CEE) today, on behalf of the Coalition for Security and Competitiveness (CSC), wrote President Obama urging the Administration to lead an initiative to fundamentally reform the outdated U.S. export control system. The CSC was initially formed in 2007 by eight leading trade and industry organizations to provide recommendations for enhancing both security and competitiveness through modernization of U.S. export controls.

“Our increasingly out-of-date export controls on American-origin dual-use and defense technologies are adversely affecting our country’s leadership and competitiveness in several fields, as a committee of the National Research Council recently concluded. There is mounting evidence of a resulting impact on national defense, according to several Defense Department reports,” wrote the associations.

“We believe that action by your Administration is urgently needed to adopt new policies to govern U.S. export controls and new administrative regulations and procedures to streamline export licensing and compliance requirements,” the letter continued. Highlighting the importance of presidential leadership and a sustained effort by senior government officials, the associations noted that only high-level direction will lead to “meaningful and lasting improvements.”

“The United States needs a 21st century export control system and administrative procedures that carefully balance our national security and ability to maintain U.S. competitiveness in the global economy,” said NFTC President Bill Reinsch, a former Under Secretary of Commerce for Export Administration in the Clinton Administration. “That balance can be achieved, but we first have to take the appropriate steps toward substantive reform.”

In addition to the NFTC and CEE, CSC members include the Aerospace Industries Association, the Association of American Exporters and Importers, the AMT – Association for Manufacturing Technology, Business Roundtable, the General Aviation Manufacturers Association, the Industrial Fastener Institute, the National Association of Manufacturers, the National Defense Industrial Association, the Satellite Industry Association, The Space Foundation, TechAmerica and the U.S. Chamber of Commerce.

To read the full text of the letter, 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.