Category: Press Releases and Statements

NFTC Sends Treasury Secretary Letter on Brazil Tax Treaty

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The Treasury Department has been involved in informal negotiations with the Brazilian government on a tax treaty between the U.S. and Brazil.  Treasury has been getting a lot of pressure from the U.S. business community to negotiate with the Brazilians.  Unfortunately, the Brazilians want to negotiate the treaty almost entirely on their own terms.  The Brazilians have included many of the same provisions in their tax treaties since the 1970’s.    The NFTC has sent the attached letter to Treasury clarifying our position on a tax treaty with Brazil.    The NFTC strongly supports a tax treaty that follows recent tax treaty precedents and lowers the withholding rates on interest, dividends and royalties to zero, and provides for the arms length standard for transfer pricing, a reasonable mutual agreement procedure, and a permanent establishment provision that reflects that traditional position of the United States.  We will not support a treaty that codifies the current high Brazilian tax rates and would be a step backward in the overall tax treaty network.  The NFTC will continue to work to strengthen our tax treaty network, particularly in those countries of highest priority to NFTC members. 

We have sent the letter to both Treasury Secretary Paulson and Commerce Secretary Gutierrez.  Michael Mundaca, John Harrington and Henry Louie have all received copies of this letter. 

To view the letter follow the link.

NFTC Releases Draft “Trade Negotiating Authority Act of 2009”

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Council Says Trade Authority to be Major Subject of Debate ‘No Matter the Outcome’ of the Presidential Election

Washington, DC – The National Foreign Trade Council (NFTC) today released a draft “Trade Negotiating Authority Act of 2009,” which the Council developed to initiate debate over the appropriate objectives for negotiating trade agreements and an efficient “fast track” process for congressional consideration of implementing legislation. The NFTC’s draft bill, which builds on existing Trade Promotion Authority and includes new provisions that update negotiating objectives and reform the Congressional-Executive consultation process, represents the first U.S. business community effort this year to critically examine Trade Negotiating Authority (TNA) in the context of the next Congress and Administration.
 
“Trade negotiating authority is vital to the future of U.S. trade policy, no matter the outcome of the election in November,” said NFTC President Bill Reinsch, who unveiled the draft bill during a press roundtable at the NFTC this afternoon. “Regardless of whether we have a President Obama or a President McCain, the new Congress and the new Administration will have to have a trade policy and will have to grapple with what to do about the process for negotiating trade agreements. We are releasing our draft bill today to catalyze that deliberative process.” 

Reinsch, continued, “Our bill is based on two fundamental ideas:  that our trade policy objectives need to be updated to reflect the demands of a much more competitive global economy, and that a successful trade policy requires close consultation and cooperation between the President and the Congress and between the two political parties.”
 
Trade Promotion Authority expired June 30, 2007, and the NFTC believes that negotiating authority is a fundamental part of U.S. global economic leadership and should be renewed, with some modifications. The Council’s “Trade Negotiating Authority Act of 2009” includes significant reforms with respect to procedure and negotiating objectives. For example, the draft bill expands congressional authority, as it calls for the creation of Joint Committee on Trade (JCOT) in lieu of a Congressional Oversight Group and requires a JCOT vote of approval before the president can begin an FTA negotiation. In addition, the NFTC draft bill includes transition rules, which clarify that agreements concluded and not acted upon by Congress retain their existing “fast track” status.
 
With regard to negotiating objectives, the draft “Trade Negotiating Authority Act of 2009,” recognizes that trade is part of a larger set of overall competitiveness issues; focuses on development and maintenance of global supply chains; eliminates most of the sector-specific objectives in previous law; focuses multilateral objectives on moving toward a “two-track” system within the WTO in which countries willing to undertake greater liberalization can do so on a non-MFN basis, and on tougher enforcement of the “substantially all trade” requirement for FTAs; focuses bilateral objectives on countries that would provide the greatest economic benefit or those that would provide useful precedents in areas like investment, regulatory policy, due process, labor and environment; and promotes harmonization of the rules in the various bilateral and regional agreements.

“Last May, Congress and the Administration came together in a bipartisan fashion to craft a new framework for U.S. trade policy. It is our hope that both branches will continue to work together to chart a productive course forward on trade, including renewing and reforming negotiating authority,” Reinsch concluded.

Follow the links to view the draft of the bill and the draft summary.

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 G-8 Agreement on Climate Change, Urges World Leaders to Develop a Multilateral Strategy Including China and India

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Washington, DC – National Foreign Trade Council (NFTC) President Bill Reinsch today released the following statement in response to an agreement reached by leaders of the Group of Eight (G-8) industrialized nations to take action on climate change by reducing greenhouse gas emissions:

“We applaud the efforts of G-8 leaders to tackle the important issue of climate change and the recognition that the issue is a global problem in need of global solutions. 

“While we are encouraged by world leaders’ overarching commitment to reducing greenhouse gas emissions, the devil is in the details, and the international community must give serious thought to a multilateral system that includes major developing countries like China and India which reduces emissions without undermining the international trading system.”

In December, the NFTC released a paper on climate change, titled “WTO – Compatibility of Four Categories of U.S. Climate Change Policy.” Please click here for a copy.

 
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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.
 

USA*Engage Applauds U.S. Response to North Korea

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Washington, DC – In response to this morning’s announcement by President Bush that the United States would remove North Korea from its list of state sponsors of terrorism and remove sanctions under the Trading with the Enemy Act, USA*Engage director Jake Colvin issued the following statement:

“We are pleased to see progress by North Korea in disclosing its nuclear facilities and the rapid response by the Bush Administration.  It is important to remember that this deal is the result of sustained, direct, multilateral diplomacy by the United States with North Korea and other concerned parties. Dialogue is not a magic bullet, but today’s actions by Pyongyang and Washington demonstrate that negotiations and patience can bear fruit.”

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USA*Engage (www.usaengage.org) is a coalition of small and large businesses, agriculture groups and trade associations working to seek alternatives to the proliferation of unilateral U.S. foreign policy sanctions and to promote the benefits of U.S. engagement abroad. Established in 1997 and organized under the National Foreign Trade Council (www.nftc.org), USA*Engage leads a campaign to inform policy-makers, opinion-leaders, and the public about the counterproductive nature of unilateral sanctions, the importance of exports and overseas investment for American competitiveness and jobs, and the role of American companies in promoting human rights and democracy world wide.

The National Foreign Trade Council (www.nftc.org) is a leading business organization advocating an open, rules-based global trading system. Founded in 1914 by a broad-based group of American companies, the NFTC now serves hundreds of member companies through its offices in Washington and New York.

USA*Engage Honors Sen. Hagel and Rep. Blumenauer for Championing U.S. Diplomacy, Global Engagement

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Washington, DC – USA*Engage and the National Foreign Trade Council (NFTC) today hosted a luncheon to honor Senator Chuck Hagel (R-NE) and Representative Earl Blumenauer (D-OR) for their leadership on issues relating to U.S. diplomacy and global engagement. During the USA*Engage 11th annual lunch, which was held in the Dirsken Senate Office Building on Capitol Hill,  both Sen. Hagel and Rep. Blumenauer delivered remarks focused on the importance of the United States maintaining an open dialogue with the rest of the world and resisting the temptation to turn inwards now and in the future.

In his remarks during the event, Sen. Hagel discussed the critical link between U.S. diplomatic efforts and the United States continuing to open markets abroad to U.S. goods and services exports. “Trade is not just an exchange of goods and merchandise. Trade is the only bridge into other nation’s culture and society. It is the one bridge that gets across the great chasm of differences; it is the one relevant and realistic option for countries to continue to grow and improve,” said Hagel. “We can fall prey to the narrowness of politics, but trade will overcome it. I believe free trade will be sustained.”

Sen. Hagel was honored for his strong support of U.S. global engagement and free trade and for being a consistent champion of diplomacy.  In a 2007 letter, Sen. Hagel called on President Bush to “offer direct, unconditional and comprehensive talks on Iran.”  In addition,  Senator Hagel has also cosponsored efforts to reform the way in which U.S. sanctions are administered.

Representative Blumenauer focused his remarks on the need for multilateral cooperation on a range of issues – from environmental protection and global poverty to international trade. “Fighting global poverty must be one of our country’s top priorities. We have a responsibility to help developing nations, yet we continue to fall disturbingly short. America invests less than two-tenths of one percent of our gross national product in ending global poverty,” said Blumenauer. “I truly believe that trade should be used to help lift people out of poverty. We must provide effective food aid to nations that need it, particularly now as the cost of food skyrockets. Sending food overseas can take months and undercuts local food markets, which is why we must streamline our delivery mechanisms.”

USA*Engage and the NFTC honored Rep. Blumenauer for his commitment to a U.S. diplomacy, including his votes against new unilateral U.S. sanctions efforts against Cuba and Iran. Rep. Blumenauer  has sought to promote humanitarian engagement abroad, and as a new member of the House Ways and Means Committee, he has been a strong supporter of a bipartisan trade policy.

Since its inception, USA*Engage has maintained a commitment to advocating for U.S. diplomatic engagement and dialogue as means of addressing important political, social and economic concerns facing the global community.  USA*Engage also remains a strong proponent of trade and citizen diplomacy, and consistently opposes U.S. unilateral sanctions.

“Senator Hagel and Congressman Blumenauer each take a thoughtful and nuanced approach to U.S. foreign policy and are champions of international engagement,” said Jake Colvin, Director of USA*Engage. “Their commitment to ensuring that the United States remains a respected diplomatic leader in the world is one reason we honor their public service today.”

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USA*Engage (www.usaengage.org) is a coalition of small and large businesses, agriculture groups and trade associations working to seek alternatives to the proliferation of unilateral U.S. foreign policy sanctions and to promote the benefits of U.S. engagement abroad. Established in 1997 and organized under the National Foreign Trade Council (www.nftc.org), USA*Engage leads a campaign to inform policy-makers, opinion-leaders, and the public about the counterproductive nature of unilateral sanctions, the importance of exports and overseas investment for American competitiveness and jobs, and the role of American companies in promoting human rights and democracy world wide.

The National Foreign Trade Council (www.nftc.org) is a leading business organization advocating an open, rules-based global trading system. Founded in 1914 by a broad-based group of American companies, the NFTC now serves hundreds of member companies through its offices in Washington and New York.

NFTC Welcomes U.S.-China Bilateral Investment Treaty Negotiations

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Council Emphasizes Need for ‘Strong, Well-Crafted’ Agreement

Washington, DC – The National Foreign Trade Council (NFTC) today welcomed news that the United States and China have agreed to enter negotiations on a bilateral investment treaty (BIT). The NFTC also encouraged negotiators to develop a strong, well-crafted agreement that will provide mutual benefits and protections to the U.S. and Chinese business communities and investors. NFTC President Bill Reinsch released the following statement:

“We commend the U.S. and Chinese governments for working diligently to reach an agreement on plans to negotiate an investment treaty, and view this development as an important step forward in U.S.-China economic relations.

“At the same time, we urge the negotiators to develop a solid agreement that could represent the ‘gold standard’ in bilateral investment treaties, versus a deal that would be less ambitious and not afford the protections and assurances that will be sought by U.S. investors.”

According to the Office of the U.S. Trade Representative, in general BIT agreements are designed to: protect U.S. investment abroad in those countries where U.S. investors’ interests are not sufficiently protected through existing agreements such as U.S. treaties of Friendship, Commerce and Navigation; encourage countries to adopt market-oriented domestic policies that treat private investment in an open, unbiased and transparent manner; and support the development of international law standards consistent with these objectives.

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