Category: Press Releases and Statements

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.
 

NFTC Statement on Administration’s International Tax Proposals

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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 Obama Administration’s release of its international tax proposals.

“During a time of economic stagnation when all attention should be focused on developing policies that stimulate U.S. competitiveness and job creation, the Administration’s proposals are counterproductive. The international tax provisions announced today would saddle U.S.-based multinational companies with what amounts to a tax increase at a time when they are doing all they can to remain competitive and protect and grow U.S. jobs.

“U.S.-based multinationals employ millions of Americans and drive economic growth. The important message that our companies have to be internationally competitive and meet worldwide demand for their goods and services to fuel the U.S. economy and domestic employment seems to have been lost on the Administration.

“We are disappointed that today’s announcement did not mention reforming the corporate tax rate, which is the second highest in the world. The tax provisions proposed today would just pile on an additional tax, jeopardizing U.S.-based multinational companies’ ability to compete both here and overseas.”

The National Foreign Trade Council is a leading member of the business community’s Promote America’s Competitive Edge (PACE) Coalition, which was launched today. For more information visit www.pace4jobs.org.

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 Swine Flu and Trade with Mexico

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Washington, DC – In response to speculative concerns about trade with Mexico because of H1N1 influenza (swine flu), the National Foreign Trade Council (NFTC) today released the following statement.

“While this flu is a serious public health issue that warrants the attention it has received, U.S. and international health organizations have declared that the virus cannot be transmitted through food products and other goods the United States imports from Mexico,” said NFTC President Bill Reinsch. “During a public health emergency, it is critical to separate fact from fiction. Fears that importing goods from Mexico will lead to the spread of H1N1 flu are unsubstantiated, and the United States should continue to maintain free and open trade relations with Mexico.”

“Mexico is one of the United States’ most important and economically significant trading partners, and we should continue business as usual using common sense based on sound science,” said NFTC Vice President for Regional Trade Initiatives Chuck Dittrich. “The United States and the rest of the international community should refrain from allowing unfounded fears to impede the flow of commerce and trade.”

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 Calls for Reform of U.S. Trade Preferences for Developing Countries

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Washington DC – The National Foreign Trade Council (NFTC) today joined other leading business and non-governmental organizations in urging Congress and the Administration to reform and renew U.S. trade preference programs for developing countries. In a letter sent to the U.S. Trade Representative and the Chairmen and Ranking Members of the Senate Finance Committee and the House Ways and Means Committee, the organizations outlined suggestions for preference reform.

“Trade preference programs play a significant role in promoting economic growth and development both at home and abroad. These programs provide tangible economic opportunities for the citizens of developing countries, and it is in our national interest to pursue policies that help reduce poverty among the world’s poorest populations,” said NFTC President Bill Reinsch. “Preference reform coupled with the successful conclusion of the Doha Round will help stimulate the global economy and deliver significant benefits to developed and developing countries.”

“To help counter the negative impact of the global economic downturn on developing countries, it is imperative for Congress and the Administration to seek timely renewal of expiring trade preference programs,” said NFTC Vice President for Regional Trade Initiatives Chuck Dittrich. “The United States should not stop there, however. We urge policymakers to go a step further to reform trade preference programs to ensure their effectiveness in delivering benefits and addressing unmet needs. Doing so will not only benefit less developed countries, but will also help U.S. companies and workers to remain competitive by decreasing the cost of needed manufacturing and other inputs.”

In addition to the NFTC, the letter was signed by 28 other organizations, including Bread for the World, Business Roundtable, the Corporate Council on Africa, the National Retail Federation, Oxfam America and the U.S. Chamber of Commerce. The letter included a Joint Proposal for U.S. Preference Program Reform, which called for the establishment of legislation with the following elements:

  • One simple, unified U.S. trade preference program that:
    • Extends benefits to all developing countries, including advanced developing countries, that meet clear eligibility criteria;
    • Contains consistent, transparent, predictable and enforceable rules for termination of country and product eligibility that also, when possible, are sensitive to opportunities to expand United States-beneficiary, or beneficiary-beneficiary trade;
    • Includes a mechanism for public comment and a clear review process for continued participation with regular reporting to Congress on performance and trends in meeting eligibility criteria;
    • Uses a simple rule of origin common to all products; and
    • Remains in effect for a period long enough to encourage long-term investment and sourcing.
  • Enhanced benefits for least developed countries, sub-Saharan Africa and designated low middle-income countries, including:
    • Extension of duty-free, quota-free market access for all products;
    • A less restrictive rule of origin for eligible sub-Saharan African countries;
    • Targeted trade capacity building assistance for countries in need, with a particular focus on building local and regional capacity in sub-Saharan African countries; and
    • A requirement that all U.S. government foreign assistance policies and tools be aligned to support the development of strong economies that can participate in local, regional and international trade. U.S. aid providers would work with private sector and civil society representatives to identify opportunities to most effectively promote economic development in impoverished countries.

To read the full 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.

NFTC Welcomes Continued Dialogue on U.S.-Colombia FTA

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Washington DC – In response to the Administration’s announcement over the weekend that President Obama has asked the U.S. Trade Representative to engage in a dialogue with the Colombian Government to work through remaining concerns with respect to the U.S.-Colombia Free Trade Agreement (FTA), the National Foreign Council (NFTC) today issued the following statement.

“We applaud the Administration for sending a positive signal that a dialogue between the United States and Colombia is already underway,” said NFTC President Bill Reinsch. “Colombia has long been an important friend to and ally of the United States. With both countries working together toward a resolution of remaining concerns that stand in the way of approval of the FTA, we believe that progress can be made toward the ratification of the agreement.”

“Colombia is a critically important partner in the hemisphere, both from an economic standpoint and with regard to regional stability and security,” said NFTC Vice President for Regional Trade Initiatives Chuck Dittrich. “Colombia has already proven its commitment to and diligence in working to prevent and stop crimes against trade unionists and all other members of Colombian society.”

“The Colombian Government has worked tirelessly to reduce the overall level of violence in the country, and has made significant strides in strengthening democratic institutions to restore and maintain the rule of law in a country once described as a failed state,” said Dittrich.

“It is our hope that in the coming weeks and months, both governments can work together to resolve outstanding issues and develop a path forward and timeline for action on the FTA,” Reinsch concluded.

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 Applaud New Direction in U.S. Cuba Policy

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Washington DC – In response to the announcement that the Obama Administration will lift restrictions on the ability of Cuban Americans to travel and send money and certain items to Cuba, and that the Administration will license certain telecommunications services with Cuba, NFTC Vice President for Global Trade Issues Jake Colvin released the following statement:

“For the first time in more than eight years, U.S. Cuba policy is moving in a positive direction.

“President Obama should be commended for taking steps to reunite Cuban families and facilitate greater communication with the island. The Obama Administration should also consider the benefits for the Cuban people and America’s economic and foreign policy interests that could result from broader changes to U.S. policies.

“American businesses, workers, and ordinary citizens can have a positive impact on the lives of the Cuban people through travel and trade. Lifting U.S. restrictions on trade and travel would also provide greater market access for America’s farmers and businesses and would boost America’s image in the world, particularly in Latin America.

“The Obama Administration has taken some important first steps to engage the Cuban people. We hope that the Administration will build on this announcement and seek other ways to increase interactions between the American and Cuban people.”

Background on U.S. telecommunications services and Cuba

In 1992, the Cuba Democracy Act authorized transactions related to telecommunications between Cuba and the United States, though payments going to Cuba related to those services had to be licensed by the U.S. Government. In addition, the Act provided that any transaction involving hardware also had to be licensed by the U.S. Government.

In 1994, the “Berman Amendment” exempted from sanctions the transmission of information, which, at the time in interpretive letters, meant that telecom services between Cuba and anywhere else were not regulated by the Trading with the Enemy Act.

In 1996, the Helms-Burton Act amended the earlier Cuban Democracy Act provision to make clear a company subject to U.S. sanctions could not conduct work to improve Cuba’s telecom infrastructure without receiving a license. In other words, if the cable was there, you could turn it on but if you needed to lay cable to reach it, that required a license.

It is the Council’s understanding that, under the Bush Administration, with few exceptions, telecom services providers were unable to receive licenses to conduct the transactions necessary to provide telecommunications services to Cuba. In addition, there were attempts by the U.S. Government to claw back the exemptions provided for by the 1994 Berman amendment.

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

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.
 

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