Category: Press Releases and Statements

NFTC Warns New Farm Bill May Not Comply with WTO Obligations, Exacerbates U.S. Sugar Program Problems

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Council Cites Missed Opportunity for Real Reform

Washington DC ¬ The National Foreign Trade Council (NFTC) today released a statement expressing concerns about the 2008 Farm Bill and its failure to include provisions that would adequately reform U.S. agricultural policy and eliminate or reduce export subsidies, tariffs and other trade distorting policies, specifically with regard to the U.S. sugar program.

“By proposing a Farm Bill that merely exacerbates existing trade distorting policies on agricultural goods, our bargaining power on a multilateral level is markedly weaker than if Congress proposed true reforms,” said NFTC President Bill Reinsch. “Congress had a real opportunity to significantly reform the U.S. sugar program and do away with a number of trade distorting subsidies, but they chose not to do so.”
 
Nearly one year ago, the NFTC expressed support for alternative Farm Bill proposals that would have helped reduce or even eliminate tariff and non-tariff barriers to trade.  The NFTC believed that these reforms would have helped to better position the United States in the Doha Round of World Trade Organization negotiations.
 
“The problem with our current sugar policy and provisions included in the new Farm Bill is that they do a major disservice to the U.S. economy – namely the American farmers and workers that power the agriculture and related services industries,” said Reinsch.
 
“Market distorting agriculture subsidies like those engrained in the U.S. sugar program are problematic because they limit export opportunities and consumer choice, and leave American taxpayers with a hefty price to pay. In turn, over time these distortions result in job loss and the inability of American farmers to remain competitive in the global marketplace,” Reinsch concluded.

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 President, Speaker and Congressional Leaders to Take Bipartisan Action on U.S.-Colombia FTA, TAA

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Calls on Policymakers to Return to Bipartisan Spirit Embodied in May 10 Agreement, Presses Ways and Means to Schedule Hearings

Washington, DC – With Saturday marking the one-year anniversary of the May 10 consensus on trade reached between Congress and the Administration, the National Foreign Trade Council (NFTC) today sent letters to President Bush, Speaker Pelosi and House and Senate Majority and Minority Leaders to press for timely, bipartisan consideration and approval of pending free trade agreements and Trade Adjustment Assistance (TAA) legislation. In similar letters to House Ways and Means Committee Chairman Charles Rangel and Ranking Member James McCrery, the NFTC urged the committee to begin scheduling hearings on the U.S.-Colombia Trade Promotion Agreement. The NFTC also sent letters to Senate Finance Committee Chairman Max Baucus and Ranking Member Chuck Grassley.

“During this time of economic uncertainty, it is critical that Congress and the Administration engage in a robust, bipartisan dialogue about how best to advance the U.S. trade agenda and expand and enhance important domestic programs, including Trade Adjustment Assistance (TAA),” wrote NFTC President Bill Reinsch.

“At its core, the May 10 agreement was a commendable bipartisan effort to ensure that U.S. free trade agreements (FTAs) contain strong labor rights and environmental protection provisions,” Reinsch continued. “One year later, Congress has an opportunity to consider and approve the U.S.-Colombia FTA. The economic and social arguments for the Colombia agreement are clear, as the FTA will afford U.S. exporters reciprocal access to the Colombian market and provide a structural framework to help Colombia continue its progress forward as a stable, democratic, economically viable global stakeholder.”

Reinsch also wrote to policymakers about the importance of Congress and the Administration working together to approve an expanded and enhanced TAA program, stating, “While the Colombia agreement, as well as those negotiated with Panama and South Korea, will help to boost U.S. economic growth, it is equally important to ensure that American workers adversely impacted by trade and technological advancements have the social safety net they need to succeed in the 21st century global economy.”
“Moving forward on both fronts will require Congress and the Administration to return to the spirit of bipartisanship embodied in the May 10 agreement, and we hope you will do your part to revitalize that spirit,” Reinsch concluded.

For a copy of the letters, please visit
http://www.nftc.org/default/trade/2008/US Colombia FTA TAA Ltr.pdf

 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, USA*Engage Urge House Energy and Commerce Committee to Explore Trade, WTO-Related Implications of Legislative Proposals on Climate Change

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Associations Say Some Policy Proposals Will Adversely Impact Trade and U.S. Competitiveness

Washington, DC – The National Foreign Trade Council (NFTC), USA*Engage joined seven other prominent trade associations today to send a letter to Chairman of the House Energy and Commerce Committee John Dingell (D-MI) and other members of the committee, to urge them to explore fully the potential trade and World Trade Organization (WTO) related implications of legislative proposals aimed at addressing climate change. The associations sent the letter in response to the committee’s recent White Paper on various approaches to climate change. In addition to Chairman Dingell, the letter was also sent to Ranking Member Joe Barton (R-TX), Chairman of the Subcommittee on Energy and Air Quality Rick Boucher (D-VA) and the subcommittee’s Ranking Member Fred Upton (R-MI).

“Every nation in the international community has a shared interest in mapping a path forward on global climate change, and the United States has an opportunity to take the lead on these efforts,” said NFTC President and USA*Engage Co-Chair Bill Reinsch. “However, if we are to lead the international community in developing related laws and regulations, we must do so in accordance with WTO rules and multilateral commitments.”

In the letter, the trade associations discussed the importance of finding a global solution to climate change, and also expressed concern about the “adverse impact that some mechanisms could have on global trade, jobs and the competitiveness of U.S. industries.” For example, “If the United States were to impose emissions legislation that levied tariffs against certain goods from another country based on environmentally-unfriendly production practices, that country could respond by taxing all goods made in the United States by pointing to U.S. per capita CO2 emissions, which are dramatically higher than the world average,” wrote the associations.

The groups underscored the importance of ensuring that U.S. laws to address climate change are compatible with WTO rules, highlighting the potential consequences of incompatibility. “To the extent that U.S. climate change proposals do not adhere to basic WTO principles such as most–favored-nation and national treatment, they run the risk of being found to be inconsistent with our obligations and subject to permissible trade retaliation by other countries,” the groups stated in the letter. 

Further, the associations noted that if the United States were to take action viewed by our trading partners as unilateral or discriminatory, countries might retaliate against U.S. exports, which would “impose substantial costs on American businesses and workers, and undermine the international economic opportunities that are vital to promote greater growth in the U.S. economy.  Such actions would also make it more difficult to reach consensus on a multilateral approach to climate change.”
In closing, the associations encouraged members of the committee to work with the House Ways and Means Committee to further explore the international trade implications of proposed climate change legislation. Other signatories on the letter included the American Apparel & Footwear Association, the American Farm Bureau Federation, the National Retail Federation, the Retail Industry Leaders Association, the Travel Goods Association, the U.S. Council for International Business, and the United States Association of Importers of Textiles and Apparel.

In December 2007, the NFTC released a report, titled “WTO-Compatibility of Four Categories of U.S. Climate Change Policy,” which examines energy and climate related bills introduced in the 110th Congress from the perspective of their compliance with World Trade Organization (WTO) rules.
For a copy of the report, please visit http://www.nftc.org/newsflash/newsflash.asp?Mode=View&articleid=1917&Category=All.

To read the full association letter, please visit www.usaengage.org.

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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 President Calls for Export Control Administration Reforms

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Reinsch Testifies That Reform is in the U.S. National Security and Economic Interests

Washington, DC – In testimony delivered today before a subcommittee of the Senate Committee on Homeland Security and Governmental Affairs, National Foreign Trade Council (NFTC) President and USA*Engage Co-Chair Bill Reinsch outlined key issues plaguing U.S. export control administration, including delay, uncertainty, repetitive licensing requirements and an outdated list of dual use items. In addition to outlining the problems, Reinsch also recommended specific reforms in the interests of U.S. national security and economic competitiveness.

“The fundamental characteristic of export control administration, whether dual use or weapons, is that both policy and specific licensing decisions inherently involve multiple equities.  Selling a controlled item is a foreign policy decision, a national security decision, a commercial decision, and often a nonproliferation and/or energy policy decision. Those equities are invested in different federal agencies, all of which deserve to be part of the process,” said Reinsch, a former Under Secretary of Commerce for Export Administration in the Clinton Administration.

“My experience has been that the government makes the best decisions when all relevant agencies are involved in the process, and each plays the role assigned to it as part of its mission. That, however, creates a cumbersome bureaucracy because it means the Departments of State, Defense, Commerce, and sometimes Energy, as well as various parts of the intelligence community, need to work together. The need to cooperate at both the technical and policy levels has been the weak point of this system for years,” Reinsch continued.

During his testimony, Reinsch outlined a number of export control administration problems, including “delay and uncertainty in decision making and, in the case of weapons, repetitive licensing requirements.  Applicants can face these problems initially if there is uncertainty or interagency disagreement over whether their proposed export is a dual use item or a weapon, and then subsequently in the licensing process itself.” Reinsch also pointed out that the dual use list is outdated and that “this, in turn, means more licenses are required in cases where our foreign competitors are not similarly constrained, resulting in loss of competitive advantage for American companies and no damage done to the end user, who simply buys a comparable European or Japanese product.”

While Reinsch endorsed the set of administrative changes to make licensing more efficient proposed by the Coalition on Security and Competitiveness, a group of prominent trade and industry organizations, of which the NFTC is a member, he argued that more fundamental reform is necessary and recommended “a unitary system that operates within an interagency framework,” which would mean combining State and Commerce control processes into a single system that retains the existing agency roles of the current dual use system.

In conclusion, Reinsch stated, “I have not in my comments addressed the question of resources.  That is not an oversight.  A plea for more resources is the standard response of every federal agency to every problem, and more money would no doubt be helpful, particularly after significant BIS budget cuts this year, but I do not believe it is the most critical issue…Adding money will not clear away the obstacles to efficient export control administration; it will simply allow more people to be inefficient.  I would encourage the Committee to address the fundamentals, however difficult that might be, rather than settle for with palliatives.”

To read the full testimony, please visit 
www.nftc.org/default/Press Release/2008/sCitigroupLatinAmerica 408 _2_.pdf

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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 News of U.S.-Korea Agreement on Beef

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Council Calls Deal a Step In the Right Direction

Washington, DC – On the heels of news Friday that South Korea intends to fully reopen its market to U.S. beef, National Foreign Trade Council (NFTC) Vice President of Regional Trade Initiatives Chuck Dittrich today released the following statement.
 
“We are encouraged by news that Korea has agreed to fully reopen its market to U.S. beef, and view this as a step forward in our bilateral relations. Resuming full beef trade between the United States and Korea is beneficial to both countries, as well as the many cattlemen and beef producers all across America.
 
“As full access to Korea’s beef market is important to the U.S. economy and necessary for congressional consideration and approval of the U.S.-Korea FTA, we hope that this new agreement will be sustained over the long-term. The NFTC applauds the U.S. and Korean governments for reaching agreement on this issue. ”
 
Last week as part of the U.S.-Korea FTA Business Coalition, the NFTC and other leading business groups sent a letter to Congress, highlighting the importance of Korea’s market and making an economic argument for congressional approval of the free trade agreement.
 
With an economy of $1 trillion, Korea is the United States’ seventh largest trading partner. Similarly, the United States is Korea’s third largest trading partner, importing roughly 17 percent of Korean exports worldwide. Of the $80 billion in two-way trade in 2006, U.S. exports to Korea totaled $32.5 billion.

NFTC President Provides Insights on Politics of U.S.-Latin America Trade Policy

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Reinsch Remains Cautiously Optimistic About Congressional Action on Colombia FTA

Washington, DC – National Foreign Trade Council (NFTC) President Bill Reinsch spoke today to the Citigroup Latin American Professionals Forum in Miami, Fla., during which he discussed the political dynamics driving U.S. trade policy toward Latin America and the future of hemispheric relations. In his remarks, Reinsch offered his perspective on bilateral agreements pending congressional approval, including the free trade agreements the United States negotiated with Colombia and Panama.

“Creating a stable, open business environment in Latin America is the bottom line trade policy goal of my organization’s members, which are U.S. based companies that operate globally,” said NFTC President Bill Reinsch. “This goal is reflected in the mosaic of Free Trade Agreements and preference programs that we have sought in the region over the last fifteen years. Unfortunately, despite some successes, we are as far from achieving that goal as we have ever been.”

Reinsch chronicled the history of U.S.-Latin America trade relations from policies set in the 1980s and the North American Free Trade Agreement (NAFTA) of the 1990s to the more recent Dominican Republic-Central America- U.S. Free Trade Agreement (DR-CAFTA) and bilateral pacts with Chile, Peru, Panama and Colombia. “Gradually the U.S. has sought to move from a client-patron trading relationship to granting unilateral tariff preferences to our more recent effort to create bilateral free trade agreements, which recognize that Latin American nations are competing in the global economy on a more equal footing,” said Reinsch.

He discussed how trade liberalization in Latin America has helped to boost U.S. exports and expand mutually beneficial bilateral trade with nations in the region, but said, “…some in Congress and a growing segment of the public are taking a different view.  They view these agreements as exporting American jobs to the south.”

“The political reality we all have to face is that trade accelerates change and creates winners and losers.  However, the gains tend to be long term and diffuse and the losses short term and specific. And in politics, whether you are in Washington, Caracas, or Buenos Aires, long term and diffuse gains are generally overshadowed by short term and specific pain,” said Reinsch. “And let me be clear:  the pain is not imaginary.  Real jobs are being lost, and a growing segment of our population is uncertain about its future.  What is missing in the public equation is cause and effect.  Trade grows; jobs are lost, but that does not mean the former caused the latter, although none of our countries are short of politicians making that link.”

In addition, Reinsch made note of the 2008 U.S. presidential election and its influence on candidates’ rhetoric about trade, especially with respect to NAFTA and the U.S.-Colombia trade pact. “At this point I remain an optimist – perhaps a naïve one – because I think the agreement will ultimately be approved but I cannot, today, describe a clear path for getting there,” Reinsch said of the potential for congressional approval of the Colombia trade agreement.

“Until Americans who receive the economic benefits that come with open trade realize what is at stake, and until those bearing the cost see light at the end of the tunnel, there will not be a pro-trade constituency as loud as the anti-trade forces, and our efforts to promote global economic integration will continue to founder,” Reinsch concluded.

To read the full remarks, please click here.

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 and Other U.S. Business Community Leaders Head to Geneva to Advocate Successful Conclusion to Doha Round

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Delegation to Participate in Key Meetings with WTO Director-General Lamy, Negotiating Chairs on Agriculture, NAMA and Services

Washington, DC – With recent signs of progress in the Doha Round of World Trade Organization (WTO) negotiations, the National Foreign Trade Council (NFTC) and other leading business groups will participate in a U.S. business delegation to Geneva spearheaded by the American Business Coalition for Doha (ABCDoha) from April 14-16, 2008. While in Geneva, the delegation will meet with WTO Director-General Pascal Lamy and key WTO negotiating chairs, including Ambassadors Don Stephenson, Chairman of Negotiating Group on Market Access; Crawford Falconer, Chairman of the Special Session of the Committee on Agriculture; and Fernando de Mateo, Chairman of the Council on Trade in Services, among others.

“The NFTC and the broader U.S. business community are deeply committed to achieving a meaningful and successful conclusion to the Doha Round as soon as possible this year,” said NFTC Senior Vice President Catherine Bennett, who will represent the NFTC on the trip. “We are encouraged by recent reports from Geneva on progress being made in the negotiations, and we look forward to hearing from the negotiating chairs and ambassadors themselves about how the process is unfolding.”

This is the ABCDoha Coalition’s first mission to Geneva, and the purpose is to gain firsthand knowledge of progress being made on the ground and to underscore the U.S. business community’s commitment to a successful conclusion to the Round. In addition to the NFTC, the delegation includes representatives from the American Iron and Steel Institute, the Automotive Trade Policy Council, CropLife America, the Emergency Committee for American Trade (ECAT), the Grocery Manufacturers Association (GMA), the National Association of Manufacturers (NAM), and the U.S. Chamber of Commerce. In addition, a number of individual company representatives will participate in the delegation, including six NFTC member companies – Cargill, Kraft, Mars, Phillip Morris International, Toyota and Wal-Mart.

“Given the state of world financial markets and increasingly protectionist sentiments cropping up around the globe, a successful conclusion to the Round would inject optimism into discussions about trade and global commerce. The international community has a real opportunity in the Round to substantially liberalize otherwise closed markets and create a framework for developing nations to prosper,” said Bennett.

“The next several weeks will serve as a test of the global community’s dedication to achieving these lofty, but attainable, goals. It is critical that all nations work together with a real sense of purpose to make the Round work and conclude it successfully this year,” said NFTC President Bill Reinsch.

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 Statement on U.S.-Colombia FTA

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Washington, DC – In reaction to the Speaker’s decision to remove the timetable from the consideration of the U.S.-Colombia Trade Promotion Agreement, National Foreign Trade Council (NFTC) President Bill Reinsch released the following statement:
 
“The U.S.-Colombia FTA should be considered by Congress on its merits. It is a carefully crafted agreement that will open markets and expand opportunities for American workers. It will also bring increased stability and economic growth to the region at a critical time in its history. NFTC members employ tens of thousands of American workers whose livelihoods depend on the Administration and Congress working through their differences to open new markets for American goods and services and to develop an American workforce well equipped to succeed in the global economy.
 
“It’s time for both sides to stop playing ‘gotcha’ and return to the bipartisanship that has maintained the integrity of the fast track process that has advanced our economy for thirty years. The stakes are too high to walk away from this challenge.”

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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.