Category: Press Releases and Statements

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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Global Innovation Forum Unveils Brain Trust

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Diverse Group of Innovation Thought Leaders to Lead Ongoing Dialogue on Innovation Policy

Washington DC – The National Foreign Trade Council’s Global Innovation Forum (GIF) today unveiled its Brain Trust, an advisory board of innovation thought leaders. The Brain Trust will support the GIF’s efforts to increase awareness and understanding about innovation policy and its affect on jobs and the development of solutions to address global challenges.

“The Global Innovation Forum’s Brain Trust will assist our effort in informing and directing productive discussions on innovation policy,” said John Stubbs, GlF’s Executive Director. “Our goal is to increase awareness and understanding about global policies that affect innovation. We are building a big tent for this dialogue, and we want to include all interested stakeholders.”

The Global Innovation Forum’s initial Brain Trust members are listed below.

GIF’s first event at Howard University with USTR Ron Kirk

GIF held its first event on Wednesday at Howard University in Washington, DC, “Securing America’s Future: Innovation Jobs for the Middle Class,” featuring the first public speech by newly confirmed United States Trade Representative Ron Kirk. The event focused on the importance of global trade rules to the creation of innovation-based jobs for the American middle class.

“The brainpower of American researchers, scientists, engineers and manufacturing workers are already solving the world’s greatest challenges– from health crises like AIDS and heart disease, to energy crises like climate change. And America’s industrial sector is ready to produce the solutions – from sophisticated chemicals to precision components,” noted Amb. Kirk in his remarks. “But as the President’s Trade Policy Agenda says, one key to our economic success is our ability to trade that innovation and creativity – through our products, our services, our intellectual property – in a rules-based system around the world.”

From the Brain Trust, Judge Newman, Professor Espinel, Dr. Gooray, Ms. Boseman-Hardy and Mr. Heibein were in attendance and participated in lively roundtable discussions with attendees. Other participants included representatives from academia, government, small businesses, non-governmental organizations, research and development, and investment communities.

“The event was an enormous success,” said Judge Pauline Newman, Circuit Judge for the U.S. Court of Appeals for the Federal Circuit. “The Global Innovation Forum compiled a powerful cross-section of viewpoints, and at a high enough level to count. This forum may provide a pathway forward for understanding and resolving some of the issues confronting innovators around the world today.”

Global Innovation Forum Brain Trust

Mr. Steven Bennett
Chief of Staff | The Brookings Institution

Prof. Amar Bhidé
Lawrence D. Glaubinger Professor of Business |Columbia University

Ms. Johnetta Boseman-Hardy
Executive Director | Entrepreneurship, Leadership and Innovation Institute, Howard University

Dr. Peter Capelli
Director, Center for Human Resources | The Wharton School, University of Pennsylvania

Dr. Rajesh K. Chandy
James D. Watkins Chair in Marketing | Carlson School of Management, University of Minnesota

Dr. Cartier Esham
Director of Health and Regulatory Affairs for Emerging Companies | Biotechnology Industry Organization

Prof. Victoria A. Espinel
Visiting Assistant Professor | George Mason University School of Law
Former Assistant U.S. Trade Representative for Intellectual Property and Innovation

Dr. Arthur Gooray
Product Development Manager | Eastman Kodak

Mr. Steve Heibein
Vice President for Technology | Center for American Progress

Mr. Dean Kamen
President | DEKA Research & Development Corporation

Sec. Kathleen A. McGinty
Founding Partner | Peregrine Technology Partners, LLC
Former Secretary of the Pennsylvania Department of Environmental Protection

Mr. John McIlwraith
Managing Director | Blue Chip Venture Company

Judge Pauline Newman
Circuit Judge | U.S. Court of Appeals for the Federal Circuit

Dr. Rob Shapiro
Chair | NDN Globalization Initiative
Former U.S. Under Secretary of Commerce for Economic Affairs

Dr. Anthony Townsend
Research Director | Institute for the Future

Mr. Jeff Vogt
Global Economic Policy Specialist | American Federation of Labor & Congress of Industrial Organizations (AFL-CIO)

 


About the Global Innovation Forum
The Global Innovation Forum is a project of the National Foreign Trade Council to create a greater understanding of the innovation ecosystem – the creation, trade and employment of innovation – and the foundations upon which this system is built to enable effective solutions to global challenges and improve the lives of workers, families and communities around the world.

The Global Innovation Forum was created in January 2009 and is a project of the National Foreign Trade Council. The National Foreign Trade Council is the premier business organization advocating for an open, rules-based world economy. Founded in 1914 by a group of American companies that supported an open world trading system, the NFTC and its affiliates now serve more than 300 member companies through offices in Washington and New York.

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’s Global Innovation Forum & Howard University’s ELI Institute Host

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“Securing America’s Future: Innovation Jobs for the Middle Class”

Keynote Address Delivered by Ambassador Ron Kirk

Washington DC – Howard University’s Institute for Entrepreneurship, Leadership and Innovation (ELI Institute) and the National Foreign Trade Council’s (NFTC) Global Innovation Forum today hosted an event, “Securing America’s Future: Innovation Jobs for the Middle Class” on the campus of Howard University in Washington, DC.

The event featured a diverse audience including students and entrepreneurs, representatives from small and large companies, nonprofit organizations, venture capital firms and labor organizations to discuss the relationship between the rules-based global economy and local job creation for middle class Americans.

U.S. Trade Representative Ron Kirk delivered keynote remarks and stressed the important relationship between global trade rules and job creation.

“We must work to make sure that when American goods, services, and intellectual property arrive in world markets, they benefit from basic safeguards similar to those they enjoy at home. The President and I are confident that given a level playing field, America’s businesses and workers can successfully compete with those anywhere in the world.” Kirk said. “At this time of extraordinary economic uncertainty, the President and I will keep working to empower American businesses to create jobs, expand opportunities for economic growth, and improve the lives of Americans.”

Attendees then participated in breakout sessions led by the NFTC’s Global Innovation Forum. These sessions focused on practical steps to strengthen job creation and retention by optimizing product innovation systems, taking innovation from basic research to commercial products, and the important role of governments, universities and the private sector in developing thriving local innovation communities in a competitive global economy.

“This event was an extraordinary opportunity to learn, discuss and develop new ideas with U.S. Trade Representative Ron Kirk and his staff about what American workers need to be successful as they continue to lead globally as innovators,” said John Stubbs, Executive Director of the Global Innovation Forum. “We look forward to continuing to work with the USTR and the Obama Administration to facilitate an ongoing dialogue on issues affecting the creation, trade and employment of innovation, the backbone of the U.S. economy.”

“The entrepreneurs and innovation leaders we are training at Howard University are preparing to enter the global economy,” said Johnetta Hardy, Executive Director of Howard University’s ELI Institute. “The success of our future leaders will depend on the predictability and enforceability of international trade rules such as intellectual property rights protection to attract investment, grow businesses, create jobs and develop critical breakthrough technologies and solutions.”

About ELI Institute and Global Innovation Forum

Howard University’s ELI Institute seeks to transform the way entrepreneurship is taught and experienced so that any student, regardless of their field of study, has the opportunity to participate. The Institute provides an environment that supports entrepreneurial activities and initiatives that create jobs and fuel economic growth in minority communities.

The Global Innovation Forum was launched in January 2009 as a new project of the National Foreign Trade Council, an organization founded in 1914 and representing some 300 companies employing millions of Americans across a wide range of innovation sectors. The Global Innovation Forum aims to create a greater understanding of the innovation ecosystem – the creation, trade and employment of innovation – and the foundations upon which this system is built to enable effective solutions to global challenges and improve the lives of workers, families and communities around the world.

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 Urges President Obama to Work With Congress to Resolve Mexican Trucking Dispute

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Washington DC – The National Foreign Council (NFTC) joined other leading associations in sending to President Obama a letter, urging him work with Congress to swiftly resolve the Mexican trucking dispute. NFTC Vice President for Regional Trade Initiatives Chuck Dittrich issued the following statement:

“With each day that goes by, the stakes are rising, and U.S. exporters and the workers who produce some 90 U.S. products are facing an increased tax on the goods they ship to Mexico.

“Resolving this issue as soon as possible is in both our economic and diplomatic interests. A prompt resolution will help to restore trust between the United States and Mexico with regard to honoring our trade commitments under NAFTA, and will to bring an end to the retaliatory tariffs put in place by the Mexican Government.

“As the President prepares for the Summit of the Americas in a couple of weeks, it will be critical for him to lead by example and demonstrate to our trading partners that the United States lives by its word. He will have an important opportunity to relate to other leaders in the Western Hemisphere the United States’ commitment to expanding global trade and investment ties.”

To read 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.