Category: Press Releases and Statements

NFTC, USA*Engage and Other Key Groups Seek Enforcement of Anti-Bribery Convention

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Washington, DC – The National Foreign Trade Council (NFTC) and USA*Engage joined four other leading associations in sending letters late yesterday to U.S. Secretary of State Condoleezza Rice, Secretary of Commerce Carlos Gutierrez, and Attorney General Michael Mukasey, urging the Administration to take specific steps to help ensure that members of the Organisation for Economic Co-operation and Development (OECD) are adequately enforcing the OECD Anti-Bribery Convention.  In addition to NFTC and USA*Engage, the American Society of Civil Engineers, the National Association of Manufacturers, Transparency International-USA and the United States Council for International Business signed the letter.
 
“This landmark agreement is important because it imposes a foreign bribery prohibition on competitors from most of the major industrialized nations simultaneously.  Unless there is consistent enforcement, contracts may go to competitors from countries with weaker enforcement records, and efforts to bring China and India under similar foreign bribery constraints will be undermined,” wrote the associations in the letter.

“The United States has been the driving force behind the OECD Convention, but, if it is not fully enforced, transnational bribery will continue to undermine fair competition, penalizing U.S. companies that operate with integrity.  It will also undermine effective use of resources, investment and economic development, the rule of law and democracy as well as energy security and national security,” the letter continued.

The associations outlined six recommended steps the Administration should take to make certain that OECD member nations are fulfilling their obligations with respect to the Convention. Noting, “foreign bribery will only abate if there is a credible threat of enforcement and dissuasive sanctions in all major exporting nations,” the groups strongly recommended that the United States urge the United Kingdom to “enact during the 2008 parliamentary session a foreign bribery law fully compliant with its Convention obligations.” They also recommended that the Administration call for a G-8 report “detailing each Party’s progress on OECD Convention enforcement and encourage those which have not brought cases to do so,” in addition to calling for an OECD annual report “listing all foreign bribery prosecutions, including convictions and other dispositions.” 

The groups called on the Administration to support accession to the Convention by China, India and Russia, to insist on high-level participation in the OECD Working Group, to urge the OECD Working Group to “reaffirm Article 5 of the Convention subject only to a narrowly drawn and reviewable exception based on the ‘necessity doctrine’ as recognized under international law.”

“We believe that the OECD Ministerial Meeting on June 4-5, 2008, is a crucial opportunity to elevate attention and pressure on all OECD members to fulfill their commitments, and we urge the United States to take the lead in this effort,” the associations concluded.

To read the full letters, 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 Statement on the Issuance of New Agriculture and NAMA Texts in Doha Round Negotiations

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Washington, DC – The National Foreign Trade Council (NFTC) today released the following statement regarding the introduction of new agriculture and non-agricultural market access (NAMA) texts in the Doha Round of World Trade Organization (WTO) negotiations:

“The National Foreign Trade Council remains hopeful that member countries of the WTO will make the hard choices necessary to substantially complete the Doha Development Round this year,” said NFTC President Bill Reinsch. “We welcome the issuance of the new negotiating texts on agriculture and NAMA as an important next step in the process.”

“Though more time is needed to review the texts in detail, real progress seems to be reflected in the text on agriculture – a product of intense senior level negotiations over the past several months. The same cannot be said of the NAMA text, which remains heavily bracketed,” said NFTC Senior Vice President Catherine Bennett. “While the NFTC supports the concept of linking proposed coefficients with the degree of flexibility to continue to protect certain tariff lines, it remains concerned that the level of ambition in the NAMA negotiations will fall short of expectations. There also seems to have been little progress on non-tariff barriers and sectoral negotiations, which are very important to American businesses and could help them accept less ambitious tariff cuts.”

Bennett continued, “While the stage has been set for a breakthrough on agriculture, NAMA seems to be a text in search of a negotiation. The time for serious senior level negotiations on NAMA, which is a prerequisite for moving to the horizontal negotiating process, is long overdue. The third pillar of this Round – services – must also not be forgotten. Without a strong services outcome, it will be difficult for the American business community or the Congress to support the deal.”

“There are only 226 days left in 2008. Let’s hope that negotiators in Geneva make good use of them. WTO Members, including the advanced developing economies, need to step up to the plate and show leadership commensurate with their stake in the global trading system,” Reinsch concluded.

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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 Commemorates World Trade Day, Urges Congress to Take Action on Pending FTAs, Trade Adjustment Assistance

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Council Calls for Committees of Jurisdiction to Schedule Hearings on Colombia FTA

Washington, DC – The National Foreign Trade Council (NFTC) today commemorated World Trade Day by calling on Congress to take action on pending free trade agreements (FTAs) with Colombia, Panama and South Korea. The Council urged committees of jurisdiction to schedule hearings on the U.S.-Colombia Trade Promotion Agreement, and pressed lawmakers to pursue legislation to expand the Trade Adjustment Assistance program.

“Congress has an opportunity right now to help stimulate the U.S. economy and export growth by approving trade agreements currently awaiting a vote, starting with the U.S.-Colombia FTA,” said NFTC President Bill Reinsch. “The Colombia agreement deserves prompt consideration, and we urge the committees of jurisdiction, their chairmen and ranking members, to act expeditiously in working together to schedule hearings on the FTA as soon as possible in the coming weeks.”

“We also encourage Members of Congress to engage in a substantive dialogue about ways to enhance and improve the Trade Adjustment Assistance program, to ensure that U.S. workers are able to compete and succeed in the 21st century global economy,” said Reinsch.

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. Upon its entry into force, the FTA will ensure that over 80 percent of U.S. consumer and industrial product exports will be traded duty-free, with all remaining tariffs being phased out over the next 10 years.  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.

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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 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.