Category: Press Releases and Statements
NFTC President Calls for Export Control Administration Reforms
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plaguing U.S. export control administration, including delay, uncertainty, repetitive licensing requirements and an outdated list of dual use items.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 Reinsch also pointed out that the dual use list is outdated and that “this, in turn, means more licenses are required in cases where our foreign competitors are not similarly constrained, resulting in loss of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
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
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
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
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.
NFTC President Testifies That Unilateral Iran Sanctions Legislation Would Come at a “Heavy Price”
Reinsch Calls on Congress to Fund High Level U.S. Diplomat
Washington, DC – In testimony delivered today before the Senate Finance Committee, National Foreign Trade Council (NFTC) President and USA*Engage Co-Chair Bill Reinsch expressed serious concern about the unilateral approach to sanctions contained in the Iran Counter-Proliferation Act of 2007 (S. 970). During his testimony, Reinsch noted that unilateral sanctions are rarely effective, would limit any progress made on the U.S. diplomatic front, and would endanger multilateral diplomacy by putting in place unilateral sanctions with extraterritorial reach.
“There is no question that Iran’s behavior poses grave concerns for the United States and our allies. Iran’s pursuit of a nuclear program is deeply troubling, and its documented support for terrorist organizations is unacceptable. These are serious problems that require the sustained attention of and involvement of the United States,” Reinsch said in his testimony. “But it is important to consider which approach is most likely to change the behavior we all want to see changed. By picking fights with our allies and limiting the ability of this and future presidents to negotiate directly with Iran, legislation like S. 970 would make it more difficult for the United States to address the threats posed by Iran.”
Reinsch cautioned, “Members of this Committee, as well as the Committee on Banking, Housing and Urban Affairs, must balance the need to stand strong against Iran’s unacceptable behavior against the risk of doing something counterproductive in an effort to address it. Passing S. 970 would come at a heavy price.”
Citing a recent report from the Peterson Institute for International Economics, Reinsch noted that historically unilateral sanctions fail to achieve their intended purpose and are therefore largely ineffective in changing the behavior of sanctioned regimes. “Given that the regime has learned how to survive decades of sanctions, more pressure by the United States alone is very unlikely to convince Iran to change its behavior. Instead, the best hope of altering Iran’s behavior is through vigorous and unified multilateral pressure in concert with our allies and Security Council partners, combined with direct diplomacy with Iran,” Reinsch stated.
Reinsch discussed provisions included in S. 970, which would be counterproductive to efforts aimed at building multilateral support within the international community to put pressure on Iran. Among these, he noted Section 8 of the legislation, which would expand current U.S. unilateral sanctions to foreign companies and “would effectively penalize entities and individuals in the very countries whose cooperation we need to effectively counteract Iran’s behavior.”
In addition to endangering multilateral diplomacy, Reinsch argued that S. 970 also limits U.S. diplomatic efforts by including a provision that calls for codifying existing Executive Order prohibitions on all exports except food and medicine, and all Iranian imports. “Codifying these prohibitions would remove the ability of a U.S. president to offer incentives or to respond to positive developments in Iran in a timely fashion,” Reinsch stated. He also noted that this approach presents a number of humanitarian concerns, as exports like life-saving medical devices could be banned, negatively impacting the people of Iran.
A better approach, Reinsch said, would be to fund a high-level special envoy for Iran with the authority to engage in direct bilateral talks in partnership with the international community. As he noted, “The United States has made some progress negotiating an end to North Korea’s nuclear weapons program through direct diplomatic engagement. When it comes to Iran, there is already a framework for cooperation – security talks in Baghdad – and precedent – the United States and Iran cooperated in the past to support democratic governance in Afghanistan.”
“I will guarantee you that if S. 970 is enacted it will have serious unintended consequences which will be manifested rather quickly, and which would make our efforts to change Iran’s behavior significantly more difficult. I strongly urge the Committee to reject this approach and instead to endorse diplomatic efforts with our allies and with Iran that are much more likely to result in a positive outcome,” Reinsch concluded.
To read the full testimony, 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 Urges Congress to Approve U.S.-Colombia FTA
Agreement Important to U.S. National Security Interests, Will Fortify Commercial Ties with Key Ally in Latin America
Washington, DC On the heels of an announcement today from the Administration that the president will send implementing legislation for the U.S.-Colombia Trade Promotion Agreement to Capitol Hill tomorrow, the National Foreign Trade Council (NFTC) released the following statement urging Members of Congress to approve the implementing bill. The Council encouraged committees of jurisdiction to begin scheduling hearings on the FTA, and asked all Members of Congress to evaluate the agreement on its merits and support it on the House and Senate floor. In addition to pressing for action on the Colombia agreement, the NFTC also called for expanding and enhancing the Trade Adjustment Assistance (TAA) program.
“The U.S.-Colombia FTA is a well-crafted agreement that reflects the labor and environmental provisions included in the bipartisan framework on trade developed by the Administration and Congress last spring. Given the commercial and national security implications of this agreement between the United States and an important ally in Latin America, we urge Members of Congress to approve the FTA in the coming weeks,” said NFTC President Bill Reinsch. “Equally as important is ensuring that American workers impacted by the trade and technological advancements receive the training, retraining and benefits they need to succeed in the 21st century global economy, through an expanded and enhanced Trade Adjustment Assistance program. We hope Congress will enact such an expanded program as well.”
“The trade agreement with Colombia will open markets and expand opportunities for American workers employed by U.S. companies with operations, facilities or interests in trade with Colombia. It will also bring increased stability and economic growth to the region at a critical time in its history,” Reinsch continued. “Approving the U.S.-Colombia agreement will send an important signal to other nations in the region that the United States is a reliable ally and committed to helping Latin America fully realize the benefits of an open, rules-based trading system.”
“With the implementing legislation soon to reach the halls of Congress, we ask committees of jurisdiction to be responsible stewards of the legislative process and begin scheduling hearings in the coming days and weeks. As Members begin reviewing the legislation, we encourage them to evaluate it on its merits and cast votes that reflect that thoughtful deliberation,” said Reinsch.
“From a commercial standpoint, Colombia is an important market for U.S. goods and services, but currently our farmers and our manufacturers pay costly tariffs on products exported to Colombia,” said NFTC Senior Vice President Catherine Bennett. “Though many products from Colombia already enjoy duty-free access to the U.S. market under existing preferences programs, the United States does not enjoy such benefits. Congress, however, has an opportunity to change the factors in this lopsided equation by approving the trade agreement.”
Under the terms of the agreement, there will be continued and increased market access for U.S. goods, including medical and construction equipment, chemicals, agricultural exports, plastics and other products. In 2007, U.S. exports to Colombia accounted for $8.6 billion, and are expected to increase by $1.1 billion following the agreement’s entry into force.
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 Congress to Permit Full Implementation of U.S.-Mexico Trucking Pilot Program
Joins Other Leading Organizations in Pressing Congress to Fulfill NAFTA Obligations
Washington, DC - The National Foreign Trade Council (NFTC) today joined 68 other leading business and agricultural organizations in sending a letter to all Members of Congress, urging them to permit the full implementation of the U.S. Department of Transportation’s (DOT) Cross Border Trucking Pilot Program, and oppose attempts to halt or impede the program. Full implementation of the pilot program is essential to fulfill U.S. trade obligations under the North American Free Trade Agreement (NAFTA).
“If the United States is to be a responsible stakeholder in the global community and honor our obligations under NAFTA, it is critical that Congress allow the U.S.-Mexico trucking program to be fully implemented and refrain from attempts to disrupt the program,” said NFTC President Bill Reinsch. “Mexico is the United States’ second largest trading partner, and the stability of U.S.-Mexico trade relations is vital to U.S. economic growth. Attempting to impede the trucking program’s implementation would put our economic relationship at risk.”
The Administration announced the introduction of the pilot program late last February, and under the one-year program, 100 U.S. and 100 Mexican trucking companies will be chosen to have access to an open border between the two countries. Currently open access is restricted to the commercial zones adjacent to the border. The pilot program allows access to all of both countries, although it only covers international cargo, and hazardous material is prohibited.
“It would be, at the very least, counterproductive to send the message to our trading partners in Mexico that we are only willing to go halfway on the program’s implementation when we’ve already given our word and made a full commitment under NAFTA,” Reinsch continued.
In 2006, Mexico was our second largest trading partner and has been among the fastest growing major export market for goods since 1993, with U.S. exports up 132 percent through 2003.
Click here for a copy of the letter.
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.
