Category: Press Releases and Statements

NFTC and USA*Engage Commend California State Assembly Committee Chairman for Putting a Hold on Divestment Legislation

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Washington, DC – The National Foreign Trade Council (NFTC) today praised Chairman of the California State Assembly Appropriations Committee Kevin De Leon for his decision to put a hold on the “Justice for Genocide Victims Bill” (AB 961). In a letter sent to Assemblyman De Leon, NFTC President Bill Reinsch and USA*Engage Director Richard Sawaya commended his action, noting that the bill would have invited a constitutional challenge because measures included would undermine the federal government’s ability to conduct foreign policy.

“We believe such state legislation is unconstitutional, contrary to proper conduct of U.S. foreign policy, and counter to the future health of the nation’s economy,” wrote Reinsch and Sawaya. “As the current administration’s policy initiatives in the Middle East demonstrate, such legislation is simply counter to the proper conduct of diplomacy. Finally, punishing corporations for imputed commercial actions retroactively would only serve to weaken further the position of both the U.S. economy generally and that of California.”

AB 961 was introduced as a follow-on to the state’s Sudan divestment legislation, which “prohibits a scrutinized company, as defined, that is, involved in specified activities in Sudan, from entering into a contract with a state agency for goods or services.” The bill would have extended the prohibition to companies that did business with agents of “genocide” – defined in the legislation as “the atrocities committed by the Ottoman and Turkish governments against Armenians from 1915 to 1923, inclusive, which constituted the Armenian Genocide, and the massacres of Armenians committed by the Ottoman Empire from 1894 to 1909, inclusive.”

The NFTC and USA*Engage advocate against state sanctions and divestment bills similar to AB 961. 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.

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.

Notes on Ellen Tauscher Confirmation Hearing

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Senate Foreign Relations Committee Hearing
Nomination of Ellen Tauscher as Undersecretary of State for
Arms Control and International Security
June 9, 2009

Committee Chairman John Kerry (D-MA) gave an opening statement followed by a statement from Senator Lugar (R-IN). Senator Kaufman (D- DE) took over as Chairman for Kerry when he excused himself from the hearing. Sen. Lugar referred to a 61 question pre-hearing document that Tauscher completed. It is available on his website or by following this link: http://lugar.senate.gov/sfrc/pdf/TauscherQFR.pdf.  Though not in attendance, Senator Boxer submitted a written statement. Senator Isakson (R-GA) was in attendance and made a personal recommendation of Tauscher. Also in attendance was Senator Cardin (D- MD).

Representative Tauscher was endorsed by two close friends and colleagues: Senator Feinstein (D-CA) and Majority Leader Congressman Hoyer (D-MD).

Topics discussed included:

Sen. Kerry asked if confirmed what role Tauscher intended for the Nuclear Posture Review. Tauscher replied that staffers of the Strategic Forces Subcommittee, which she chairs, were already heavily involved working on it and that if she were confirmed she would make it a multidepartment effort. Sen. Kerry also asked about the implementation of defense trade with the United Kingdom and if she would be willing to work with them to achieve their goals. Tauscher answered affirmatively. Kerry then brought up the U.S. – India peaceful use of nuclear energy agreement which he and Lugar had supported and she had opposed and then asked her thoughts on the U.A.E. 123 Agreement. Tauscher expressed support for the agreement saying it was a good model for nuclear non-proliferation and important in the region. Finally, Kerry asked for her support and corporation on the CTBT which she confirmed she would offer if she were to be confirmed.

Sen. Lugar inquired if it would be too difficult to deal with the Nuclear Posture Review and renegotiating START simultaneously. Tauscher was confident in the ability to multitask. He then asked for her thoughts on if the United States would seek a new cutoff for the creation of fissile materials, and what the fundamental challenges in doing so would be. She replied that the challenges were both technical and political and that she would seek to work with great transparency. She confirmed that she was aware of the approaching deadline and that any treaty would protect U.S. National Security. Finally Sen. Lugar asked about chemical weapons and the apparent inability of both the United States and Russia to meet deadlines for their destruction. Tauscher acknowledged a problem with acquiring the necessary funding to meet the 2012 deadline but said we should be 90% of the way there. She also made the point that as a world leader it is important that we follow through on our commitments.

Sen. Cardin asked about cooperation that the United States has had with Russia on the issue of Iran. Tauscher suggested that ever since the end of the Cold War the best way to preserve our national security was to engage and cooperate with nations that are world leaders in certain spheres as Russian is in the nuclear arena. She stressed the importance of continued efforts at cooperation with all world leaders. He then inquired about restrictions on satellite launches in China and intellectual property rights. Tauscher replied that technology, especially a lot of dual use technology, has a lifespan and that it is critical to protect items that are essentially to national security. She stated however, that once it is no longer absolutely critical to protect the item it must be removed from the protection list since it is impossible to protect everything. She also spoke to the necessity of protecting American jobs.

Sen. Kaufman asked how Tauscher saw her job as we prepare to remove our forces from Iraq. She highlighted her strong connections with the Pentagon and said that though we have the strongest armed forces in the world they should be used least and last. She said that our ultimate goal is to leave Iraq stable and better then it was. In regard to Afghanistan she said it was a world of counterinsurgency and that we had to be prepared for it. She also emphasized a need to have more civilians in Afghanistan.

NFTC Commends Senate Finance Committee for Holding Hearing on U.S.-Panama FTA

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Council Urges Administration to Send Implementing Legislation to Congress, Outline Path Forward on Colombia and South Korea Agreements

Washington, DC – The National Foreign Council (NFTC) today issued a statement applauding the Senate Finance Committee for holding a hearing on the U.S.-Panama Free Trade Agreement (FTA). The NFTC also pressed the Administration to send forth the trade pact for Congressional approval and provide a timeline for action on pending agreements with Colombia and South Korea.

“The NFTC applauds Senators Baucus and Grassley for scheduling today’s hearing and beginning to lay the legislative groundwork for consideration of the Panama FTA,” said NTFC President Bill Reinsch. “As Ambassador Kirk indicated earlier this week, the Administration is working diligently to resolve remaining issues with the Panamanian Government. We urge the President to send the agreement to Congress as soon as possible for bipartisan approval, and to outline next steps on the pending agreements with Colombia and South Korea.”

“With each day that passes without the Panama agreement in place, the United States risks losing important opportunities that can help to grow U.S. exports, our economy and jobs,” said NFTC Vice President for Regional Trade Initiatives Chuck Dittrich. “The multi-billion dollar Panama Canal expansion project, which is slated for completion in 2014, and other projects present numerous opportunities for U.S. businesses in the equipment, financial services and transportation sectors. However, those opportunities could be lost to our competitors if we continue to delay.”

The U.S.-Panama FTA was signed June 28, 2007, and once enacted, will result in the duty-free trade of nearly 90 percent of U.S. consumer and industrial goods exports to Panama, with other tariffs being phased out over 10 years. In 2008, bilateral trade between the United States and Panama reached roughly $5.3 billion, with $4.9 billion coming from U.S. exports.

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.
 

NFTC, USA*Engage Endorse Baucus Bill Aimed at Reforming U.S. Cuba Policy

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Washington, DC – The National Foreign Trade Council (NFTC) and USA*Engage today endorsed a bill introduced late yesterday by Senate Finance Committee Chairman Max Baucus – the Promoting American Agricultural and Medical Exports to Cuba Act of 2009 (S.1089) – which would facilitate U.S. agricultural and medical exports to Cuba and lift the travel ban for U.S. citizens.

“The NFTC and USA*Engage applaud Senator Baucus and the bipartisan group of co-sponsors for their leadership in advocating for a new approach to U.S. Cuba policy,” said NFTC President and USA*Engage Co-Chair Bill Reinsch. “The proposed provisions will not only benefit the American farmers and medical device and pharmaceutical manufacturers who will enjoy the advantages of better market access, but also the people of Cuba who could reap the benefits of new humanitarian imports and the opportunity to interact with Americans.”

The legislation would make a number of important changes to U.S. policy. The bill would:

  • Restore the right of all Americans to travel to Cuba;
  • Repeal a special interest provision known as Section 211 that violates international intellectual property rules;
  • Redefine the definition of the payment term known as “cash-in-advance” to its original Congressional intent under the 2000 Trade Sanctions and Reform Act;
  • Authorize direct transfers between U.S. and Cuban Banks for agricultural exports;
  • Require USDA to promote U.S. agricultural exports to Cuba;
  • Advocate for the issuance of U.S. visas related to agricultural exports; and
  • Remove impediment to exports of medical products from the United States to Cuba.
“We welcome Senator Baucus’ bill and leadership,” said NFTC Vice President for Global Trade Issues Jake Colvin. “This bill would advance trade with and travel to Cuba, which will result in the kind of contact and citizen diplomacy that is good for the American and Cuban people.”

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.
 

Major Industry Associations Urge Immediate Senate Action on the Miscellaneous Tariff Bill

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Washington, DC – The Manufacturing Tariff Bill Coalition was joined by several other major business groups in transmitting a letter to the Senate Finance Committee strongly urging them to begin their work on the Miscellaneous Tariff Bill (MTB). The MTB provides critical duty relief to U.S. manufacturers by removing tariffs on vital production inputs that have no competitive products or domestic suppliers within the U.S. Economy.

In a letter transmitted to the Chair and Ranking Member of the Senate Finance Committee as well as the Senate Majority and Republican leaders, the Manufacturing Tariff Bill Coalition urged for swift action on the MTB, stating: “At a time of economic turmoil, American manufacturers cannot afford higher costs resulting from an outdated tariff code. Therefore, it is essential that the Senate Finance Committee move promptly to commence the process of consideration of the next MTB.” The letter further stated that the House Ways and Means Committee is currently drafting a bill with a markup anticipated in the near future.

Since the early 1980s, the House Ways and Means and Senate Finance committees have incorporated temporary duty suspensions into larger pieces of legislation known as miscellaneous tariff bills (MTBs). The last MTB legislation was passed during the 109th Congress and included temporary duty suspension on approximately 680 products until December 31, 2009. During the 110th Congress, duty suspensions on roughly 800 products were introduced in the House, but MTB legisla¬tion did not pass before Congress adjourned. Extending existing duty suspensions and enacting new legislation in the first session of the 111th Congress would help ease some of the economic difficulties facing U.S. manufacturers. It is imperative that Congress act expeditiously to pass an MTB to ensure the vitality and competitiveness of American manufacturers.

The Manufacturing Tariff Bill Coalition was joined on this letter by the American Chemistry Council, the Association of Equipment Manufacturers, the Business Roundtable, the Emergency Committee For American Trade, the National Association of Manufacturers, and the National Foreign Trade Council.

NFTC Welcomes USTR Signals on Trans-Pacific Partnership

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Washington, DC – In response to press reports of Ambassador Ron Kirk’s statements indicating that the United States will go ahead with negotiations to join the Trans-Pacific Partnership (TPP), which already comprises Brunei, Chile, New Zealand and Singapore and is seeking to add the U.S., Peru, Australia and Vietnam, National Foreign Trade Council (NFTC) Vice President for Regional Trade Initiatives Chuck Dittrich issued the following statement:

“If press reports are accurate, this is indeed good news and the NFTC and its members strongly support Ambassador Kirk’s vision for using the TPP negotiations as a means to expand our commercial engagement with the Asia-Pacific region.

“The strategy that seems to be emerging from USTR is to engage our trading partners on a multitude of levels, including enforcement of existing agreements and resolution of long-standing disputes. Engaging early on through the TPP to develop a creative approach to a plurilateral and comprehensive market opening initiative in the Asia-Pacific region jump starts this Administration’s strategy and signals to our trading partners that the United States is serious about expanding markets for American
products and services.

“Starting negotiations this year through the TPP will lay the groundwork for an even more productive Asia-Pacific Economic Cooperation (APEC) conference hosted by the United States in 2011.

“We look forward to official confirmation from USTR on the status of the TPP initiative.”

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.

 

NFTC Welcomes Administration’s Plans for Action on U.S. Trade Agenda

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Washington, DC – In response to remarks delivered this afternoon by U.S. Trade Representative Ron Kirk at the U.S. Chamber of Commerce, the National Foreign Trade Council (NFTC) released the following statement.

“The NFTC welcomes Ambassador Kirk’s remarks on trade and the increasing attention that the Obama Administration is devoting to advancing America’s global economic interests. NFTC supports the Administration’s path forward on trade, including its attempt to secure meaningful market access as part of a Doha agreement and concluding free trade agreements with Panama, Colombia and Korea,” said NFTC Vice President for Global Trade Issues Jake Colvin. “We applaud the Administration’s intention to engage all stakeholders on trade, including those Americans who are more skeptical of the benefits and aware of the costs. As NFTC’s work with groups like the Center for Global Development, Oxfam, the ONE campaign and the U.S. Conference on Catholic Bishops demonstrates, it is not just American businesses who care about trade.”

“Ambassador Kirk’s speech was a timely reminder that if all politics is local, then our engagement in trade politics in America today must start at the local level, convincing all Americans of the vital role free trade plays in the economic survival and recovery of the U.S. economy,” said NFTC Vice President for Regional Trade Initiatives Chuck Dittrich. “We welcome his renewed commitment to finding a way forward on the important trade issues of the day, and we urge the Administration and Congress to move forward on these efforts without delay, starting with immediately sending forward to Congress the U.S.-Panama FTA.”

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.

NFTC Statement on International Tax Provisions Included in Administration’s Greenbook

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Washington, DC – National Foreign Trade Council (NFTC) Vice President for Tax Policy Cathy Schultz today issued the following statement in response to the U.S. Treasury Department’s release of its Greenbook, the details of the Obama Administration’s FY2010 revenue proposals.

“The current state of the U.S. economy is fragile, and our ability to rebound quickly and sustain growth in real dollar terms and with respect to job creation depends heavily on both the domestic and international policies we pursue to make U.S.-based multinational companies and our workers more competitive.

“Maximizing U.S. competitiveness means adopting measures that help to improve the U.S. business climate and provide the incentives that make it possible for U.S.-based companies to continue to employ millions of American workers.

“While we are still reviewing the new provisions included in the Greenbook released today, it is abundantly clear that the Administration has proposed a $210 billion tax on U.S.-based multinational companies at a time when our companies and their employees are already working overtime to remain competitive in these tough economic times. The Administration’s proposals would make that task all the more difficult.

“These proposals also come at a time when countries around the world, including the United Kingdom and Japan, are adopting competitive international tax policies. The United States is heading in the other direction at exactly the wrong time. America has always prided itself on being a step ahead of the competition, and now, unfortunately, we risk falling many steps behind.”

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.
 

USA*Engage and NFTC Urge Congress to Rethink Unilateral Iran Sanctions Legislation

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Associations Caution Proposed Bill Could Undermine U.S. and Multilateral Diplomacy

Washington, DC – USA*Engage and the National Foreign Trade Council (NFTC) today urged Members of Congress to reevaluate new U.S. unilateral sanctions against Iran as proposed in the Iran Refined Petroleum Sanctions Act (IRPSA) – H.R. 2194/S. 908. The associations cautioned that imposing additional unilateral sanctions on Iran at a time when the Administration is mapping out its diplomatic strategy, would be counterproductive to those efforts and ineffective in influencing the Iranian regime to change its behavior.

“While the legislation would attempt to restrict Iran’s access to petroleum products as a way of putting pressure on the current regime to cease its nuclear development, it will most probably have the opposite effect,” said Richard Sawaya, Director of USA*Engage. “As the history of existing sanctions on Iran demonstrates, IRPSA would strengthen those in Iran’s government who oppose negotiations with the U.S. and, if at all successful, turn popular sentiment in Iran against engagement. At this time in particular, additional sanctions will constrain the Administration’s ability to conduct foreign policy and jeopardize common cause with our allies.”

The legislation would require that any foreign entity selling refined petroleum to Iran or otherwise enhancing Iran’s ability to import refined petroleum, including financing, brokering, underwriting or providing ships for such activity, be barred from doing business in the United States. IRPSA would also apply to any entity that provides goods or services that enhance Iran’s ability to maintain or expand its domestic production of refined petroleum.

“The Administration intends to engage Iran diplomatically and has made overtures in line with that approach,” said NFTC President and USA*Engage Co-Chair Bill Reinsch. “New unilateral sanctions would undermine that strategy and send the message to both Iran and our allies that the United States is not committed to diplomacy.”

Last Friday, USA*Engage and the NFTC joined other associations and non-governmental organizations in sending a letter to all Members of Congress, voicing opposition to the proposed legislation. The groups argued that for the past 30 years, U.S. policy toward Iran has been focused “exclusively on sanctions, threats and isolation,” and “as a result, we now face a more powerful and problematic Iran than ever before.” They wrote, “Building support for new sanctions now – before diplomacy has been given enough time to succeed – will suggest that America is not serious about engagement and will actually make negotiations less likely to take place.”

For more information, visit www.usaengage.org and www.nftc.org.
 
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.