Category: Press Releases and Statements

NFTC Statement on Administration’s 2009 Trade Policy Agenda

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Washington, DC In response to the release of President Obama’s 2009 trade policy agenda, National Foreign Trade Council (NFTC) President Bill Reinsch today issued the following statement.

“We welcome the agenda so early in the Administration, particularly the indication that the Administration is prepared to move forward on the Panama FTA and develop a path for progress on the other two outstanding agreements with Colombia and Korea.

“We also share the Administration’s support for an ambitious Doha Round agenda, its renewed focus on removing non-tariff barriers to trade, and a commitment to seek new agreements which have significant benefits for American businesses, workers and farmers. We look forward to hearing their plans for achieving the worthy goals that they have set out.

“We appreciate and endorse the emphasis on policies that benefit American workers and help society to deal with the often painful adjustments which are part of the modern global economy. In this regard, like the Administration, we welcome the expansion of the Trade Adjustment Assistance program that was included in the stimulus bill, something the NFTC and other associations fought hard for.

“While we support the laudable social goals articulated in the document, we need to remember that just as trade policy cannot be the solution to all of our domestic economic problems, neither can it solve all the social problems of other nations as we perceive them. Trade agreements are reached by negotiation, which means each side must demonstrate flexibilities in order to reach agreement. We certainly do not expect an administration at this point to reveal where its flexibilities may lie, but would remind policymakers that they will inevitably have to address the priorities and concerns of potential negotiating partners.

“Overall, the United States would benefit from the greater degree of transparency and consultation that the document promises. As an organization that has been actively engaged in consulting with previous administrations for 95 years, we welcome more consultation and transparency. We hope that any new processes created will not ignore the interests and concerns of the millions of Americans whose jobs rely on the export and import of products and services.

“Finally, we welcome the Administration’s emphasis on energy and environment. In particular, we support strong leadership from President Obama in international negotiations involving trade and the environment, including a successful conclusion of an agreement to liberalize trade in environmentally-friendly goods and services. We believe that the success of the Administration’s important environmental and energy objectives will require multilateral negotiation and agreement rather than unilateral action.”

For a full copy of the Administration’s trade policy agenda, visit http://www.ustr.gov/Document_Library/Recent_News/Section_Index.html.

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.


 

United Businesses Urge Support of TAA in the Economic Stimulus

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Washington, DC – The National Foreign Trade Council (NFTC), in conjunction with other businesses and associations today sent a letter to Congress urging their support for the inclusion of the Trade and Globalization Adjustment Assistance Act of 2009 in the conference report for H.R. 1, the American Recovery and Reinvestment Act.

To read the full letter, please click here or visit www.nftc.org.

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Advancing Global Commerce for Over 90 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 Commends Senate Amendment on Trade Adjustment Assistance Program

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Council Calls Agreement a Good Sign of Progress

Washington, DC – The National Foreign Trade Council (NFTC) today lauded Members of the U.S. Senate Finance Committee and the U.S. House Committee on Ways and Means for their movement on improving and expanding the Trade Adjustment Assistance (TAA) program in the American Recovery and Reinvestment Act of 2009. NFTC believes the Baucus-Grassley amendment modernizing the Trade Adjustment Assistance (TAA) program to assist American workers is vital to America’s continued competitiveness and economic recovery.

“NFTC welcomes today’s amendment as a positive step in promoting growth and jobs through trade,” said NFTC President Bill Reinsch. “Today’s action signals progress toward a national trade policy that promotes trade liberalization while addressing the concerns of American workers who worry about losing their jobs.”

Finance Chairman Max Baucus (D-MT), Ways and Means Chairman Charlie Rangel (D-NY), Finance Ranking Member Chuck Grassley (R-IA) and Ways and Means Ranking Member Dave Camp (R-MI) said they will seek to amend the economic recovery bill to help companies and workers impacted by global expansion of the American economy. The amendment, the Trade and Globalization Adjustment Act of 2009, will authorize Trade Adjustment Assistance through 2010 and redesign benefits to be more flexible and accessible.

“This amendment has been carefully crafted to target assistance in a cost effective manner where it is needed most, empowering American workers with the tools and training they need to succeed in the global economy,” said Chuck Dittrich, NFTC Vice President of Regional Trade Initiatives. “This amendment represents the input of Republicans and Democrats in both the House and the Senate to find common ground. We strongly support this milestone in moving back to a bipartisan consensus on trade and competitiveness and urge the full Congress to adopt the measure.”

In 2008 the NFTC and other leading U.S. business community organizations launched a new coalition – the Trade and American Competitiveness Coalition (TAA Competitiveness). The coalition focuses its efforts on urging Congress to act on legislation to enhance and expand the TAA program as well as advocating for various legislative measures that will ensure American workers are well-equipped to compete in the integrated 21st century global economy.

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Advancing Global Commerce for Over 90 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 Senate Environment and Public Works Committee Principles on Climate Change Legislation

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Washington, DC – In response to the release (Link to: http://epw.senate.gov/public/index.cfm?FuseAction=Majority.PressReleases&ContentRecord_id=240662f6-802a-23ad-4716-3af9a8adb9c7&Designation=Majority) by Chairman of the Senate Environment and Public Works Committee Barbara Boxer of principles for global warming legislation, NFTC Vice President for Global Trade Issues Jake Colvin put out the following statement:

“We applaud the initiative of Senator Boxer and the Committee on one of the most urgent issues of our time. As the Committee’s Principles for Global Warming Legislation suggest, working with the international community will be key to ensuring an effective response to global warming.

“We urge the Obama Administration and Congress to work with our international partners to create viable multilateral frameworks under the U.N. Framework Convention on Climate Change (UNFCCC), and through other forums such as the World Trade Organization, to incentivize reductions in carbon emissions.

“Incentivizing emissions reductions abroad through unilateral legislative measures – especially punitive ones – will be complicated and difficult to achieve at best. At worst, such efforts could interfere with the United States’ international obligations as well as the global competitiveness of U.S. businesses.”

The NFTC in December 2007 released a report, which details WTO-Compatibility of Proposed U.S. Climate Change Legislation. For a complete copy of the report, please click here.

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Advancing Global Commerce for Over 90 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 Expresses Concern Over ‘Worldwide Debt Cap’ Rules in Proposed UK Tax Legislation

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Washington, DC – The National Foreign Trade Council (NFTC) today expressed concern over draft tax legislation currently under consideration in the United Kingdom (UK), which includes “worldwide debt cap” rules that would create a web of complexity and uncertainty for foreign investors. In a letter sent by NFTC President Bill Reinsch to UK Chancellor of the Exchequer Alistair Darling, MP, the NFTC expressed deep concern over the draft legislation.

“The proposed legislation is very wide reaching and complex, and its introduction in its current form would cause great uncertainty both for existing and potential inbound investors,” wrote Reinsch. “These factors will have a negative impact on the UK’s attractiveness as a location for inward investors and could lead to the overall foreign profits package (including the dividend exemption) being seen as making the UK less competitive in the international arena. Particularly in a time of recession, that cannot be a constructive policy for the UK.”

The NFTC letter also pointed out that the proposed rules would be both difficult to apply and administer, as they would require investors to generate many separate calculations, including some that must be made on a gross basis and others on a net basis. Further, the NFTC, noted that “the detailed calculations lead to unintended results and disallowances due to their complexity” and that “the time periods for making calculations and the associated additional returns are very restrictive and do not fit into the existing administrative framework, thus making all of the administration still more time-intensive (and prone to error).”

In addition, the NFTC questioned the rationale behind the rules, noting that the UK already has in place three other rules that restrict interest deductibility and add complexity for foreign investors – thin capitalization rules, the “unallowable purpose” rule, and the anti-arbitrage rules.

The NFTC suggested that the UK not adopt the worldwide debt cap rules now as proposed and instead continue to work with the private sector to make the proposed system less complex. “Given the current economic downturn, and significant losses being made by the banking and other sectors, we do not believe that a short delay in implementing the worldwide debt cap rules would adversely impact tax revenues,” wrote Reinsch.

“In short, we do hope that you will reconsider the introduction of the worldwide debt rules in their current form, except with the very broadest of safe harbors. There is much that is good in the foreign profits package, and that our members think is forward-looking. It would be unfortunate if the worldwide debt cap rules were to negate all of that, and, instead, discourage foreign investors,” Reinsch concluded.

To read a full copy of the letter, please click here.

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Advancing Global Commerce for Over 90 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 Applauds President Obama’s Choice for Commerce Secretary

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Washington, D.C. – The National Foreign Trade Council (NFTC) today praised President Obama’s nomination of Senator Judd Gregg (R-NH) to serve as U.S. Commerce Secretary. NFTC President Bill Reinsch released the following statement.

“We congratulate Senator Gregg on his nomination and applaud President Obama for selecting such a seasoned veteran to take the helm at Commerce.

“As a third-term senator and an appropriator, he has vast knowledge and insight into the inner workings of Congress, and how he could best work with his colleagues on the other side of Pennsylvania Avenue as Commerce Secretary.

“Sen. Gregg consistently received solid scores in the NFTC’s annual Congressional rankings on support for liberalized U.S. trade and investment policies. While in Congress, he cast important trade votes, most recently voting in favor of free trade agreements with Peru and Oman, CAFTA-DR, and against imposing unilateral sanctions on Iran.

“There is much pressing work to do, including working with Congress and President Obama to stimulate the flow of commerce, manage the national transition to digital television and the 2010 Census.

“We look forward working with Commerce Secretary-designate Gregg to ensure future U.S. economic growth and prosperity for our workforce.”

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Advancing Global Commerce for Over 90 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 Launches Global Innovation Forum

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Washington, DC The National Foreign Trade Council (NFTC) today launched a major new initiative designed to better protect and promote American jobs and ingenuity in todays increasingly challenging economy. The Global Innovation Forum will seek to create new opportunities and enable solutions to global challenges through effective protection and enforcement of intellectual property rights (IPR) worldwide.

The NFTC represents more than 300 companies, many of which are global innovation leaders that rely on intellectual property protection and a predictable global trade system to employ tens of millions of workers, said NFTC President Bill Reinsch. There are few more cost effective ways to stimulate the economy than to ensure a predictable global IP system that protects jobs. The U.S. Department of Commerce estimates that intellectual property accounts for half of American exports and 40% of U.S. economic growth, so it is critical that we have the appropriate resources, rules and enforcement of those rules in place to support these workers.

The Forum will initially focus on international policy issues related to fostering innovation and innovation job growth, intellectual property protection, technology transfer and efforts to address global challenges. The Forum will launch a Web site next month focused on these issues and intends to hold a series of meetings to advance a dialogue among innovative company representatives and workers, consumer groups, international development organizations and policymakers.

The global economic slowdown is creating new pressures on both innovators and consumers at a time when the world is confronting enormous challenges related to developing new energy solutions, improving public health, creating environmental sustainability, securing access to food and nutrition and raising global living standards, said John Stubbs, Executive Director of the Global Innovation Forum. These challenges will be met by the hard work of creative minds in the United States and around the world our goal is to provide a forum to advance policies that support that creative effort and promote active ecosystems for innovation.


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 Cautions Against Global Protectionism in Response to Financial Crisis

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Encourages World Leaders to Fulfill G-20 Pledge

Washington DC – In response to a report released late last week by the World Trade Organization (WTO), which revealed that key U.S. trading partners are imposing higher tariffs on exports, NFTC Vice President for Global Trade Issues Jake Colvin today released the following statement.
 
“Two months ago, leaders of the G-20 nations convened in Washington to develop policies aimed at mitigating the impact of the global financial crisis.  In addition to other commitments, world leaders pledged not to put in place new protectionist tariff and non-tariff barriers to trade. 

“Today, as the new WTO report indicates, some nations are backtracking on their G-20 pledges.  Breaking the trade barriers promise threatens to undermine the global trading system and the credibility of the G-20.
 
“While the WTO report suggests that the impact of the crisis on tariff rates has been limited thus far, demands continue to mount for new and higher levels of protection.  India’s decision to raise steel tariffs, for example, has been met with calls by Indian industry for even higher tariffs. Brazil just announced new measures which require importers of cars, motor vehicles, wheat, capital and other goods to obtain ‘pre-approval’ prior to receiving goods from overseas. In the United States and around the world, overly-trade-restrictive ‘buy national’ provisions are being debated as part of stimulus and recovery packages.  The world’s response to the global financial crisis really has yet to be seen.

“We call on world leaders gathering in Davos this week and in London for the G-20 meeting in April to find new ways to build bridges to prosperity rather than erecting new walls that jeopardize the global trading system and economic growth.  Enforcing the ‘no new tariffs pledge’ and working towards a successful conclusion to the Doha Round of trade negotiations would contribute to global growth and help bolster the credibility of global institutions like the G-20.  As history tells us, erecting new trade barriers could worsen the global crisis.”

For a full copy of the WTO report, please click here.

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Advancing Global Commerce for Over 90 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.

Citing Preemption, USA*Engage and NFTC File Amicus Brief in Florida Travel Act Appeal

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Washington, DC – The National Foreign Trade Council (NFTC) and USA*Engage today filed an amicus curiae brief with the U.S. Court of Appeals for the Eleventh Circuit in support of the plaintiffs in the case of Faculty Senate of Florida International University vs. the State of Florida. The case revolves around the Florida Travel Act, a state law that inhibits academic travel from Florida to Cuba and other countries designated by the U.S. State Department as sponsors of international terrorism.
 
“Our support for the educators in this case stems from the NFTC’s longstanding view that federal government action preempts states on matters of foreign policy,” said NFTC President and USA*Engage Co-Chair Bill Reinsch. The arguments made in the brief refer to the landmark 2000 U.S. Supreme Court decision in Crosby v. NFTC, which struck down a Massachusetts Burma sanctions law on constitutional grounds.

The brief was authored by Paul D. Clement, a partner in the Washington, D.C. office of King & Spalding and former Solicitor General of the United States, a position he held from June 2005 until June 2008. 
 
In the brief, the organizations highlight that federal actions including the Trading With the Enemy Act, the Cuban Democracy Act and the Cuban Assets Control Regulations preempt the Florida Travel Act, but also argue, “even beyond the preemptive effect of the existing federal statutory and regulatory regime, the Florida Travel Act represents an impermissible effort by Florida to adopt its own distinct foreign policy.”
 
“The Constitution leaves little doubt as to which level of government was to address issues of ingress and egress with respect to our national borders,” reads the NFTC brief. “While states have the authority to adopt policies with incidental effects on foreign travel, there is nothing indirect or incidental about the Florida Travel Ban. It is an avowed effort to do the federal government one better when it comes to travel to state sponsors of terrorism. Under the constitutional scheme, Florida’s rejection of the national policy is plainly impermissible.”
 
The NFTC and USA*Engage also argue that though the Florida Travel Act was intended to address Cuba-related foreign policy concerns, the Act has a broader, more intrusive impact, as it applies to all state sponsors of terrorism, who are subject to varying federal regulatory and legal regimes.

For a full copy of the brief, please click here.

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Advancing Global Commerce for Over 90 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.