Category: Press Releases and Statements

NFTC Releases Analysis of 2008 Congressional Election Results and Their Impact on U.S. Trade Policy

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 Calls Results a ‘Mixed Bag’ 

Washington, DC – The National Foreign Trade Council (NFTC) late Friday released an analysis of what the 2008 congressional election results mean for U.S. trade and engagement policies in the 111th Congress. The NFTC conducted the analysis to explore whether there is any truth to assertions made over the past few weeks that the composition of the incoming freshman class signals a seismic shift in the future of U.S. trade policy. The NFTC analysis was designed to answer the following questions: Was trade a key campaign issue for members of the incoming class? Do new members’ views on trade differ from those of their predecessors? Is there a substantial difference between being a “trade skeptic” and being “anti-trade?” Has it become more difficult to pass trade legislation in Congress?

“After an election, it’s always tempting for representatives of each side of an issue to come out and declare victory, but it’s not that simple,” said NFTC President Bill Reinsch. “The truth of the matter is that the results of the congressional elections are a mixed bag when it comes to trade. In the majority of races, trade was not an important factor, and it is not correct to suggest that incoming members represent a sea change in the way the United States will approach trade and diplomatic policies.”

“We look forward to working with the incoming class and briefing new members on our top trade priorities, including passage of the pending free trade agreements with Colombia, Panama and South Korea, enactment of an enhanced Trade Adjustment Assistance program, and a successful conclusion to the Doha Round, among many others,” said Reinsch.

The NFTC analysis found that of the eight Senate races analyzed, only four successful candidates mentioned trade explicitly on his or her Web site when discussing campaign issues.  Based on these Web sites and other statements, the NFTC estimates that perhaps two of the successful candidates are less inclined towards free trade and engagement than the incumbent based upon his or her historical voting record. Similarly, in the 52 House races analyzed, only 12 successful candidates made any mention of international trade in the issues section of his or her Web site. Further, of the 12 House races in which trade was featured, only seven successful candidates appear to advocate policies that are clearly less inclined towards free trade and engagement than their predecessors. According to the NFTC, only 23 percent of successful candidates running for a House seat mentioned trade on their Web site, which is a dramatic decline from 2006 when 54 percent of successful candidates mentioned trade.

“We believe there is an opportunity to craft a bipartisan U.S. trade policy going into next year.  Republicans and Democrats have indicated a strong commitment to using the May 10th agreement as the basis for the U.S. trade agenda moving forward, and we expect to see a renewed sense of bipartisanship and greater consensus on key issues like labor and the environment,” said NFTC Vice President for Global Trade Issues Jake Colvin.

“At the beginning of new presidential terms, there tends to be greater bipartisan support for trade,” Colvin continued. “Moving forward on trade policy will require building trust between the parties and leadership from the President, and our hope is that President-elect Obama will work with both sides of the aisle to restore that bipartisan spirit in Congress.”

The analysis noted that the “CAFTA-15” were easily reelected, and survived primary challenges from trade skeptics. The NFTC also pointed out that to the extent that there is any increase in skepticism, it is regional and largely reflects concerns over loss of manufacturing jobs. While the NFTC believes these are valid concerns, they do not suggest that the new Congress is broadly “anti-trade.”

For a copy of the NFTC 2008 Congressional Election Analysis, 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 Urges Japan to Extend Seven-Year Limit on Carry-Forward of Losses as Part of Emergency Tax Package Under Consideration

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Washington, DC – National Foreign Trade Council (NFTC) President Bill Reinsch today sent a letter to Japanese finance and economic ministers, urging the government to adopt a proposal to extend the period of time in which corporations can use losses against profits in future years. The NFTC believes that Japan should extend the seven-year carry-forward period as part of the emergency tax package the Japanese government is considering introducing in response to the international financial crisis.

“This is much shorter than the period allowed by almost every other developed country of which we are aware. At this time, when substantial losses are being incurred, especially in the financial sector, it seems clear that a period longer than seven years will be required to fully utilize such losses,” wrote Reinsch. “If corporations are required to write off some of these losses because they cannot be utilized in the current seven-year period, that will increase the impact of such losses. It will also make Japan a less attractive place in which to invest, compared to other countries with longer carry-forward periods.”

Reinsch noted that extending the seven-year limit would benefit both domestic and foreign investors. “Our members are committed to investment in Japan, but very hard economic choices have to be made, even for businesses with a long-term view,” he wrote.  “Our members believe that an increase in the carry-forward period to 20 years (or, preferably, an unlimited period, as in many countries) would significantly increase the likelihood of continued inward investment into Japan.”

“We hope that you will support this proposal, and our members would be happy to work with you in fashioning an acceptable provision.” Reinsch concluded.

For 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 Welcomes New Senior Vice President Robert Ragan

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Washington, DC – The National Foreign Trade Council (NFTC) today announced that Robert (Bob) Ragan will join the organization as Senior Vice President, effective January 12, 2009. Ragan currently serves as Principal Vice President of Bechtel, one of the world’s largest engineering and construction companies.

“As a dedicated member of the NFTC Board of Directors for the past 15 years, Bob has been a tireless advocate for this organization and its policy objectives,” said NFTC President Bill Reinsch. “From his work on the Board and our Plans & Policies Committee to his past chairmanship of the State & Local Sanctions Committee of USA*Engage, Bob has brought his expertise and leadership skills to the table time and time again, and we are so pleased to welcome him to the NFTC team in his new role.”

Prior to joining the NFTC, Ragan held numerous leadership positions at Bechtel. Following a career in the U.S. Government with the Departments of Energy and Defense, and the National Aeronautics and Space Administration, from 1980 to 1986, Ragan was responsible for Bechtel’s worldwide procurement management and strategic planning for Bechtel National, Inc. He was Manager, Defense and Space Programs from 1986 until 1990. Between 1990 and 1993, he served as Vice President of Marketing & Business Development for other international engineering and construction firms.
He then returned to Bechtel in 1993 to serve as Manager of the Washington, D.C. office until June 2007, when he became Manager of Marketing & Business Development.

In addition to his other duties in the Washington office, Ragan was responsible for international trade and government relations. During his tenure at Bechtel, he served on the Board of Directors of both Bechtel Systems & Infrastructure, Inc. and Bechtel National, Inc. Ragan has also helped to lead key U.S. business community initiatives, including serving as a board member of the U.S.-Russia Business Council and Meridian International Center, and as chairman of the Washington Export Council and the National Constructors Association’s Government & International Affairs Committee.

The NFTC, founded in 1914, is the only business association dedicated solely to trade policy, export finance, international tax and human resources. The organization represents more than 300 companies through its offices in New York City and Washington, D.C. As Senior Vice President, Ragan will focus on a number of policy issues, including trade, international tax and intellectual property, and on NFTC member relations and development.

Ragan succeeds Catherine Bennett, who recently joined Tyco International as Vice President of Public Affairs. “We appreciate all of Cathie’s work on behalf of our members, especially her leadership of the WTO Initiative and Intellectual Property Working Group, and we wish her the best in her future endeavors,” concluded Reinsch.

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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.

Cuba embargo slips as South Florida’s top priority

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There will be many conclusions to draw from the 2008 election, but voters in South Florida have made one thing clear – the political appeal of the Cuba embargo is nearing its end.

The next time a candidate for national office campaigns in South Florida, he or she will have to discard the well-worn hard line on Cuba policy and adopt a platform that addresses the concerns of an increasingly diverse community.

Cuban-Americans, like most Americans, would seem to care more about a candidate’s position on the economic-recovery plan these days than on the transition in Cuba. Recent polling suggests that large majorities of Cuban-Americans favor candidates who will prioritize housing and health care over transition in Cuba.

Hitting an anti-Castro note sounds off-key in a state that has the third-highest number of foreclosures in the country.

Beyond mere fatigue with the embargo, many Cuban-Americans also are having second thoughts about U.S. policy toward Cuba. Over the past eight years, the Bush administration has driven a wedge through the community by imposing new restrictions on the ability of U.S. residents to travel and send remittances to Cuba.

These policies have forced many Cuban-Americans who had reflexively supported the embargo to reconsider the impact that sanctions were having on their community and friends and family.

In Miami last month, I met a Cuban-American who changed his views on the embargo after traveling to the island with his father. He told me, “The Bush restrictions forced many in our community who blindly supported the hard line to stop and think, ‘Wait a minute. I’m anti-Castro. But are we doing the right thing?’”

Another said to me, “Cuba for my generation is not Fidel Castro. It’s the grandmother, the sister that you left behind.”

Those politicians who would cling to policies of extreme isolation hold an outdated view of their constituents.

Today, majorities of Cuban-Americans favor not only the rollback of Bush administration restrictions on travel and remittances, but also allowing unrestricted travel to Cuba by all Americans.

Large majorities of Cuban-Americans also favor diplomatic negotiations with Cuba and a dialogue that would include Cuban dissidents and representatives of the Cuban government. Even support for the embargo, an article of faith in South Florida for years, is rapidly eroding.

Fewer than 60 percent of Cuban-Americans support the embargo, according to a 2007 poll by Florida International University, compared with 66 percent in 2000 and 78 percent in 1997.

While the Cuban-American electorate – which trends older and more Republican than the broader community – historically has been among the most loyal supporters of the embargo, there is a growing center of voters and would-be voters emerging who care more about jobs, health care and visiting their family and friends in Cuba than Fidel Castro.

Excitement over Barack Obama’s candidacy, combined with concern about President Bush’s sanctions against Cuba and the state of the economy, are driving political participation among exactly the type of voters who are least likely to support current policy.

Tens of thousands of new Democrats made their voices heard in Miami-Dade County in this election, providing a tremendous boost to Democratic congressional candidates against incumbent Cuban-American Republicans that would have been unthinkable just a few years ago.

Statewide, Florida is becoming younger, more progressive and more Hispanic. The new voters that have been engaged in the political process are more likely to add to the voices challenging the conventional wisdom in South Florida and help to marginalize supporters of a policy of extreme isolation for years to come.

“There is a generational and economic shift,” Joe Garcia told me last month.

Mr. Garcia, who has mounted a strong Democratic challenge to Republican Rep. Mario Diaz-Balart in Florida’s 25th Congressional District, pointed to the U.S. economic crisis and anger over the restrictions on travel and remittances by Cuban-Americans as factors influencing voters in South Florida.

These changing demographics present a political opportunity for the next president, members of Congress and the candidates who seek to replace them to appeal to a community that is more diverse politically than it has been given credit for.

Responding to the frustration and, in some cases, resentment of the embargo as a political issue that has set in to much of the Cuban-American community would be a popular move.

In this age of permanent campaigns, there is no doubt that some political strategists are already looking at their 2010 calendars. They should take note: Relying on tough rhetoric and hard-line Cuba policies as an electoral strategy in Florida is over.

Jake Colvin is vice president with the National Foreign Trade Council and a fellow with the New Ideas Fund, where he is working on a project on U.S.-Cuba policy.

NFTC and USA*Engage Release 110th Congressional Report Card

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WASHINGTON, DC – The National Foreign Trade Council (NFTC) and USA*Engage today issued their 110th Congressional Report Card, grading Members of Congress on key international trade and engagement votes in 2007 and 2008. The Report Card scored Senators on six votes, and House Members on 12 votes, on issues ranging from the U.S.-Peru Free Trade Agreement (FTA) and easing Cuba restrictions, to imposing sanctions on Burma and Iran, and encouraging divestment. In contrast to previous scorecards, this year’s Report Card considered fewer votes because Congress did not vote on as many issues involving international trade and engagement as in years past.

“While we applaud the House and Senate for taking bipartisan action on some of the policies that will help to increase U.S. goods and services exports, level the playing field for our companies, workers and farmers, and encourage diplomacy over unilateralism, overall the 110th Congress took little action on the U.S. trade and international diplomacy agenda,” said NFTC President Bill Reinsch. “There is much work left to be done. For example, we commend Congress for approving the Peru FTA, but we urge them to consider and approve agreements with Colombia, Panama and South Korea in a lame duck session or soon after the 111th Congress commences. Similarly, we are pleased that the House voted to expand and enhance the Trade Adjustment Assistance program, but we urge the Senate to follow suit so the United States has in place a robust program that will ensure the competitiveness of our workers displaced by trade.”
 
Reinsch also expressed concern over votes taken in the 110th Congress that aimed to impose increased sanctions on Iran and encouraged divestment from both Iran and Sudan, arguing that unilateralism is rarely, if ever, an effective means of achieving the desired result. “Changing the objectionable behavior of a head of state or an entire regime requires more than unilateral sticks; it requires multilateral engagement and diplomacy. The United States is best served by a foreign policy focused on the latter.”

The Report Card evaluated Senators based on six key votes: the U.S.-Peru FTA; a cloture vote for immigration reform; an amendment to block Mexican trucks; and bills to renew Burma sanctions, make OPEC illegal and approve the India Nuclear Agreement. Sens. Chuck Hagel (R-NE) and Richard Lugar (R-IN), who consistently receive high marks on the scorecard, earned the two highest scores in the Senate.

With respect to the two presidential candidates, NFTC and USA*Engage noted that both senators voted in support of two key issues of importance to the associations’ members.  Jake Colvin, NFTC Vice President for Global Trade Issues noted, “Senators McCain and Obama cast important votes in favor of immigration reform and the India nuclear pact, which were two key issues for us during the 110th Congress.  While neither candidate was present for the vote on the Peru trade agreement, we are encouraged by the strong commitment to free trade each expressed in the most recent debate.” Colvin also pointed out that the votes on visa issues and free trade agreements demonstrate that open markets and engagement are important to large majorities of Members even if bipartisanship on some trade issues had slipped in recent years.  “Going into next year, I’m optimistic about the prospects for increased bipartisan support for trade and diplomacy,” said Colvin.
 
To evaluate Members of the House, the NFTC and USA*Engage used 12 votes as criteria, including some of those included in the Senate Report Card and others – a vote to expand Trade Adjustment Assistance; bills encouraging divestment from companies with operations in Sudan and Iran; legislation to impose economic sanctions on Iran, prohibit funding for the visa waiver program and better enforce IP protections; and a vote on a rule to block the Colombia FTA from Congressional consideration.

Representative Jeff Flake (R-AZ) received the highest grade in the House, with a bipartisan group of Members following with the second highest scores: Reps. Roscoe Bartlett (R-MD), Dave Camp (R-MI), Jim Cooper (D-TN), Robert Kramer (D-AL), Henry Cuellar (D-TX), Vernon Ehlers (R-MI), Charles Gonzalez (D-TX), Baron Hill (D-IN), Timothy Johnson (D-IL), Donald Manzullo (R-IL), Jim Matheson (D-UT) and Christopher Shays (R-CT).

Please click here to read the 110th Congressional Report Card. For more information, visit www.nftc.org and www.usaengage.org. 

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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 (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.

NFTC Welcomes U.S. Entry Into Trade Negotiations with Four Asia-Pacific Nations

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Trans-Pacific Strategic Economic Partnership Agreement to Boost Regional Ties

Washington, DC – The National Foreign Trade Council (NFTC) today welcomed an announcement by the U.S. Trade Representative that the United States will enter into negotiations to join a free trade agreement (FTA) with Brunei, Chile, New Zealand and Singapore – the “P-4” group of countries. The agreement, titled the Trans-Pacific Strategic Economic Partnership Agreement, was negotiated by the P-4 nations exclusively and entered into force in 2006. Today marked the launch of negotiations for the United States to enter into the agreement.

“Given the uncertain state of the global economy, today’s news is a welcome development and serves as an important stepping stone in laying the foundation for increased trade and investment between the United States and four of our Asia-Pacific partners,” said NFTC President Bill Reinsch. “We applaud U.S. and P-4 trade negotiators for their efforts to reach this point, and we urge them to continue this productive dialogue to craft a mutually beneficial, high-standard agreement.”

“Entering into an agreement with the P-4 countries offers an opportunity to open and expand access to a critically important region of the world,” said Chuck Dittrich, NFTC Vice President for Regional Trade Initiatives. “The Asia-Pacific region has successfully negotiated and put into force more than one hundred bilateral and regional agreements to date, and it is in the United States’ best interest to further build and expand relations with the P-4 nations.”

Brunei, Chile, New Zealand and Singapore are helping to drive economic growth in the Asia-Pacific region, which represents nearly 60 percent of global gross domestic product (GDP) and roughly 50 percent of international trade.

Global Food Safety Seen as Growing Trade Issue

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NFTC Forum Brings Together Business Leaders, Policymakers and Experts to Discuss Ways to Raise Standards

Washington, DC  – The National Foreign Trade Council (NFTC) and Waters Corporation today hosted a one-day Global Food Safety Policy Forum, during which representatives from the food industry, policymakers and thought leaders in international affairs discussed policy solutions to help ensure the safety of the world’s food supply. The NFTC forum, “Raising Food Safety Standards Worldwide,” focused on how to raise food safety standards both in the United States and among our foreign trading partners.
 
“Ensuring the safety of the global food supply chain is critical to the strength of our international trading system,” said NFTC President Bill Reinsch. “If families in the United States and across the globe have to approach the kitchen table with trepidation because of concerns about the safety of the food they are eating, it could have a huge negative impact on the international food market and raise broader concerns about the entire world trading system.”
 
With food safety as one of the many issues atop the international community’s agenda, the forum was an effort to build a bridge between industry and public policy leaders to outline solutions to the global food safety challenge. The forum featured three panel discussions with public and private sector experts, and two keynote addresses, delivered by Rep. Diana DeGette (D-CO), the Deputy Whip of the U.S. House of Representatives and European Union Ambassador to the United States John Bruton.
 
“A strong Food and Drug Administration (FDA) is in the best interest of consumers and businesses alike; however the agency has been starved for resources in recent years,” said DeGette. “By having an agency that is better able to monitor imports, set enforceable standards, and prevent contamination, we will not only prevent illnesses but restore consumer confidence in the food industry. That is why I have been proud to champion two important food safety priorities – mandatory recall authority that will give the government the power to quickly remove tainted food products from our store shelves , and a national, comprehensive food traceability system, which will enable us to track food products from the ‘farm to the fork.’ These two initiatives will go a long way in ensuring the safety of our nation’s food supply.”
 
During his remarks, Ambassador Bruton discussed a number of ways the international community can come together to achieve strong global food safety standards, including through international harmonization and on a bilateral basis, by establishing standards of equivalence. “We, the EU support the multilateral system of harmonization and we are quite happy about the cooperation which we have with the U.S. in many instances, helping to move things along. But if we are seeking more immediate solutions to imminent trade problems, harmonization cannot be the answer – at least not the only one,” said Bruton. “We need to find ways to build into our bilateral trade regulations the concept of ‘equivalence’ – accepting the idea that safe food can be produced by different combinations of measures.”
 
The first panel discussion, titled “Perspectives From Multinationals Amid Reform and Globalization,” was moderated by Bob Brackett, Chief Science Officer and SVP, Grocery Manufacturers Association (GMA) and the panelists were Henry Chin, Senior Director, Global Scientific and Regulatory Affairs, The Coca-Cola Company, and Tres Bailey, Sr. Manager of Agriculture and Food, Wal-Mart Stores Government Relations.
 
The second panel,  “Harmonization, a Comparison of Legislative Approaches and Capacity Building Efforts,” was moderated by Paul Young, Waters, Former EU Food Safety Inspector, and featured commentary from three panelists: Wolf Maier, EU Agriculture Attaché; David Acheson, Deputy Commissioner FDA; and Caroline Smith Dewaal, Director Food Safety, Center for Science in the Public Interest.
 
The final discussion, titled “Impact of China’s Food Safety,” was moderated by Jennifer Turner, Director of the China Environment Forum and the panelists were Drew Thompson, Director of China Studies and Starr Senior Fellow, Nixon Center, and Fred Gale, Senior Economist with the Market and Trade Economics Division of the Economic Research Service, U.S. Department of Agriculture.