Category: Press Releases and Statements

NFTC, USA*Engage Release Statement on Sudan Bill

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Washington DC – National Foreign Trade Council (NFTC) President and USA*Engage Co-Chair Bill Reinsch today released a statement regarding the President’s signing of a bill Monday that aims to pressure the Sudanese government to end the genocide in Darfur through economic sanctions.
 
“The bill the President signed into law, effectively limiting the scope of state and local government efforts to divest from companies with ties to Sudan, clearly and narrowly defines the actions state governments may take with respect to divestment.
 
“While we opposed the bill and believe it to be unconstitutional, it nonetheless represents one of the more thoughtful approaches to divestment as it sets strict criteria and conditions which must be met if a state or local government plans to divest. The bill’s detailed provisions will make some legislation currently being considered by state legislatures around the country even more dubious from a constitutional perspective than they already are.
 
“Despite its flaws, the bill is an improvement over earlier versions as a result of serious and thoughtful work by both parties.  We encourage states considering divestment legislation to take careful note of the new provisions to ensure that their proposed bills are in accordance with the law.”
 
In August 2006, the NFTC filed a lawsuit to challenge an Illinois Sudan divestment law, and in February 2007 a federal judge declared the law unconstitutional.
 

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 Applauds Senate Ratification of German, Belgian Tax Treaties

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Washington, DC – The National Foreign Trade Council (NFTC) today released a statement applauding the U.S. Senate for ratifying tax treaties with Germany and Belgium before adjourning for the year.

“We commend the Senate for removing previous holds on the treaties and ratifying them, allowing for expeditious implementation of reforms included in the new protocols,” said NFTC President Bill Reinsch. “Both treaties will enhance economic development and investment ties with Germany and Belgium, and lead to greater transparency between our countries. We thank the Senate leadership for making the treaties a high priority during this legislative session.”

The NFTC has long been an advocate for the expansion and strengthening of the U.S. tax treaty network as a means to ensure the continued global competitiveness of U.S. companies. “By eliminating excessive foreign taxes, double taxation and other impediments to the flow of capital, these tax treaties are vital to ensuring U.S. companies’ ability to compete on a level playing field with foreign competitors,” said Reinsch.

The NFTC supports reform of U.S. treaty policies to allow for a zero withholding rate on related-entity dividends, and these treaties move closer to that goal. Both the German and Belgian tax protocols lower the ownership threshold required to receive the benefit of the zero dividend withholding rate from 100 to 80 percent.

The treaties also include enhanced tax treaty arbitration processes. For example, the German Protocol provides for mandatory arbitration of certain cases that cannot be resolved by the “competent authorities” within a specified period of time, a provision that is the first of its kind in a U.S. tax treaty.

“The NFTC is hopeful that the Treasury Department will send the Canadian Tax Protocol to the Senate early next year. Upon receiving the proposal, we encourage Members to review and ratify it swiftly so that the United States can reap the economic benefits that many competitor nations already enjoy,” 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.

USA*Engage and NFTC Urge Administration to Press for Supreme Court Review of Alien Tort Statute Cases

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Washington DC – USA*Engage and the National Foreign Trade Council (NFTC) today joined five other prominent trade associations in urging the Administration to file an amicus brief with the U.S. Supreme Court in the matter of the consolidated South African apartheid cases brought under the Alien Tort Statute. In letters to Secretary of Commerce Carlos Gutierrez and Secretary of State Condoleezza Rice yesterday, the associations urged the Cabinet officials to recommend to the Solicitor General that the government file an amicus brief in support of the petition for certiorari to be filed by the defendants in the case – Khulumani v. Barclays National Bank and Ntsebeza v. Daimler Chrysler, Nos. 05-2141 and 05-2326 [Second Circuit].
 
“Given the importance of this case, and the urgency of prompt Supreme Court review, we hope you will recommend that the government not await an invitation from the Court to present its views,” the associations asserted.
 
The case was originally dismissed in November 2004 by the U.S. District Court for the Southern District of New York and appealed to the Second Circuit Court of Appeals. Subsequently, the Second Circuit vacated that dismissal on October 12, 2007, “in a decision that, among other things, wholly ignored the stated position of the U.S. government regarding the negative impact that the litigation would have on U.S.-South Africa relations.”
 
According to the letter, whose signatories also include the Chamber of Commerce of the United States of America, the Corporate Council on Africa, the National Association of Manufacturers, the Organization for International Investment and the U.S. Council for International Business, there are a number of compelling reasons for the Supreme Court to hear the case as soon as possible. Among them, the associations argued, “The apartheid cases are based on allegations that the corporate defendants, including many major U.S. companies, aided and abetted violations of international law by the former South African government by doing legal business in South Africa.”
 
“The promiscuous use of the Alien Tort Statute by plaintiffs to bring before U.S. courts actions that occurred solely in other countries interferes with the conduct of foreign policy by the Executive Branch and impinges on the sovereignty of other nations, the associations stated. Further, the letter noted, “corporate liability for aiding and abetting ultimately has the same effect as a unilateral economic sanction by signaling to the private sector in which countries they should conduct business and in which they should not.”
 
“This litigation has very real implications for the nature of our relations with South Africa, and other key allies who are concerned about the use of the Alien Tort Statute,” said NFTC President and USA*Engage Co-Chair Bill Reinsch. “We urge the Administration to acknowledge the importance of the lawsuit with respect to U.S. foreign policy, by supporting the certiorari petition to be filed by the defendants.”
 
For copies of the letters, please click here.

 
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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.
 
 

International Business Community Urges WTO Members to Exert Leadership, Conclude Doha Round

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NFTC and Other Key Stakeholders Urge Negotiators to Achieve Successful, Commercially Meaningful Outcome
 
Washington DC – The National Foreign Trade Council (NFTC) today joined 36 other leading business organizations from 19 developed and developing economies in a joint statement calling on world leaders and World Trade Organization (WTO) members to exert needed leadership to achieve a balanced and commercially meaningful outcome to the Doha Round of WTO negotiations.
 
“The international business community stands firmly behind achieving a timely, balanced and ambitious conclusion to the Doha Round. In the ‘Call to Leadership’ we are releasing today, business groups from 19 developed and developing economies urge our respective national leaders to demonstrate political leadership on the Doha Round by making the tough decisions necessary for success,” said Mary Irace, NFTC Vice President of Trade & Export Finance. “Concluding the Doha Round with a commercially meaningful result will strengthen the multilateral rules-based trading system and serve as a powerful engine of global economic growth and development.”
 
Describing the Doha Round as a “once-in-a-generation opportunity of enormous promise and relevance,” the international business community representatives assert that the time for final action is now.
 
“While each of our organizations has politically sensitive issues and economic concerns at home, we stand united in our support for concluding an ambitious and balanced outcome to the Doha Round centered on providing more open, transparent and predictable conditions for trade in agriculture, industrial goods and services, and we recognize that both developed and advanced developing nations must contribute meaningfully toward a successful conclusion,” read the statement.
 
In addition, the business groups highlight the Chairmen’s texts on agriculture and industrial goods as a major step forward in the negotiations. The NFTC welcomes the recognition that refinement of these texts, and an accompanying text on services, should serve as the basis for the final negotiations. It will also be important to ensure good agreements on trade facilitation and rules as part of the final outcome.
 
For a copy of the statement, 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.

New Report Details WTO-Compatibility of Proposed U.S. Climate Change Legislation

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Washington, DC – On the heels of vigorous Congressional debate on proposed climate change legislation, the National Foreign Trade Council (NFTC) today released a new analysis, 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. The NFTC report also suggests that it is in the United States’ best interest as a global leader to develop climate change policies that are consistent with our multilateral obligations.

 
“Every nation has a stake in the environment, and the United States has a unique opportunity to lead the global community in developing international climate change law and regulations. We should begin by ensuring that U.S. policies are in accord with the WTO rules we and our trading partners have adopted,” said NFTC President Bill Reinsch. “As Congress debates climate change, it is important that policymakers understand that action will be most effective if it is multilateral and consistent with WTO rules.”
 
The NFTC report examines seven leading bills pending in the Congress based on the policy tools they employ, including energy efficiency regulations and standards/government-administered eco-labeling, subsidies to encourage climate-friendly investments, public procurement of climate-friendly goods and services, and emissions trading.
 
“The NFTC does not advocate a particular policy on climate change, but we strongly recommend that any action be WTO-compliant, and we point out clearly that early movers have a significant opportunity to shape the development of international rules in this area,” said Reinsch. “The United States must realize the importance of multilateralism and engagement with the rest of the world to develop climate change policy tools that can hold their own with respect to international law. It makes little sense to enact laws here that will only become the subject of WTO complaints by allied nations in the future.”
 
According to the analysis, the emissions cap-and-trade system proposed in S. 2191 may in theory be one of the most WTO-compatible policy tools, as emissions permits are not currently considered a “good” or “service.” The report cautions, however, that because such programs often involve government subsidies or require eco-labeling, their implementation may raise WTO concerns.
 
The detailed analysis also notes that the provisions for government procurement of climate-friendly goods included in H.R. 3221 do not appear to be in violation of the WTO Agreement on Government Procurement. However, subsidies for renewable energy included in the form of loan guarantees for renewable fuel facilities proposed in H.R. 6 are likely to violate the WTO Agreement on Subsidies and Countervailing Measures. Similarly, the report concludes that the government-administered eco-labeling also proposed in H.R. 6 may violate the WTO Agreement on Technical Barriers to Trade.
 
The report concludes, “In the end, passage of domestic legislation that is WTO-compliant will accelerate the meeting of U.S. national energy and climate change policy imperatives; will level uncertainties for U.S. enterprises, furthering their leadership in international commerce; and will give the United States a positive international reputation that could positively affect areas of diplomacy outside the sphere of climate change.”
 
For a complete copy of the report, please click here.

NFTC Applauds Senate Approval of Peru Trade Promotion Agreement

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Council Urges Action on FTAs with Colombia, Panama and South Korea

 
Washington DC – The National Foreign Trade Council (NFTC) today applauded the U.S. Senate for its bipartisan approval of the U.S.-Peru Trade Promotion Agreement (PTPA), and urged Congress to schedule procedural action and subsequent votes on pending agreements with Colombia, Panama and South Korea.
 
“Today’s Senate approval of the Peru agreement is an important milestone in our bilateral relations, and is evidence of the United States’ commitment to economic growth and development in Latin America,” said NFTC President Bill Reinsch. “With a growing ‘to-do’ list just weeks before adjournment, action on other pending FTAs seems unlikely, and so we urge Members to move ahead with timely consideration of the Colombia, Panama and South Korea agreements as soon as the Second Session of 110th Congress commences.”

 
The PTPA will allow for continued and increased market access for U.S. goods such as machinery, electronics, plastics and agricultural products, among others. In 2006, two-way trade between the United States and Peru reached $8.8 billion, with $2.9 billion of this coming from U.S. exports.
 
“Peru is a growing market for U.S. goods and services, and this FTA strengthens our existing trade partnership by expanding opportunities for U.S. industries and workers,” said Mary Irace, NFTC Vice President for Trade and Export Finance. “It is important to recognize that the U.S. market is already wide open to imports from Peru under existing US trade preference programs and generally low tariffs.The PTPA will change that by eliminating tariff and non-tariff barriers to our bilateral trade in both markets.The NFTC looks forward to its entry into force and also to Congressional action on the three other pending FTA agreements.”
 
While most Peruvian products already enter the United States duty-free under a number of trade preference programs, including the Andean Trade Preference Act, U.S. goods and services routinely face an average weighted tariff of nine to 10 percent. Under the terms of the agreement, 80 percent of U.S. consumer and industrial products and more than two-thirds of current U.S. farm exports will enter Peru duty-free immediately.

 
 
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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 Commends House for Bipartisan Approval of U.S.-Peru Trade Agreement

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Council Urges Swift Senate Vote, Action on Pending Agreements

 
Washington DC – The National Foreign Trade Council (NFTC) today commended the U.S. House of Representatives for approving the U.S.-Peru Trade Promotion Agreement (PTPA), with a substantial number of Democrats and Republicans voting for the trade deal.

 
“We applaud the House for delivering a solid bipartisan vote on the Peru trade agreement, and look forward to similar action in the Senate in the next few days,” said NFTC President Bill Reinsch. “Strong support for the FTA on both sides of the aisle is the result of a lot of hard work on the part of the House leadership and the Administration to come together to craft a bipartisan U.S. trade agenda.”
 
Two-way trade between the United States and Peru reached $7.4 billion during 2005, with $2.3 billion of this coming from U.S. exports. The PTPA will allow for continued and increased market access for U.S. goods such as machinery, electronics, plastics and agricultural products, among others.
 
“Congressional approval of the PTPA will show our trading partners in Peru and the rest of the region that the United States values our commercial relations with Latin America,” said Mary Irace, NFTC Vice President for Trade and Export Finance. “Following final action on Peru, we look forward to timely consideration of the Colombia, Panama and South Korea FTAs.”
 

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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 Michigan State Lawmakers to Consider Consequences of Proposed Divestment Bill

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Says Legislation Undermines U.S. Foreign Policy, Harms Pensioners

 

Washington, DC – The National Foreign Trade Council (NFTC), a Washington, DC-based association of some 300 companies engaged in international trade and investment, earlier this week urged Members of the Michigan Legislature to oppose SB 846, which could require divestment from an array of companies with international operations. The NFTC sent a letter to all state lawmakers urging them to consider the bill’s potentially negative consequences, warning that the measure undermines federal foreign policy and puts state pensioners and U.S. companies at undue financial risk while having no effect on the behavior of targeted governments.
 
“The Framers of the Constitution put the power to conduct foreign policy in the hands of the federal government for a reason,” said NFTC President Bill Reinsch. “The ability of the United States to speak with a unified voice on matters of foreign relations is paramount to U.S. diplomacy. It is, at the very least, counterproductive to have 50 different states devising 50 different foreign policies.”
 
“Statutes aimed at affecting foreign policy at the state and local levels – as divestment seeks to do – threaten to create a complex web of restrictions and regulations that interfere with the Constitutional rights given to the President to largely conduct foreign policy,” wrote Reinsch in a letter to Michigan legislators. “State sanctions and divestment bills could impede various federal initiatives to develop a multilateral approach because their impact would fall primarily on companies located in the very countries whose support the President is seeking.”
 
Reinsch called on legislators to consider two important court decisions, including NFTC v. Crosby (2000) and NFTC v. Giannoulias (2007),a case in which the NFTC brought suit against Illinois over the state’s “Act to End Atrocities and Terrorism in Sudan.” The letter notes that on February 23, 2007, Judge Matthew Kennelly of the Federal District Court for the Northern District of Illinois ruled that the state’s law was “unconstitutional because ‘the Act violates federal constitutional provisions that preclude the states from taking actions that interfere with the federal government’s authority over foreign affairs and commerce with foreign countries.”
 
The NFTC pressed Michigan lawmakers to take a closer look at the lack of well-defined criteria that would be used to identify companies targeted for divestment. “There is no federal list to rely upon, and the available alternatives are highly subjective in terms of their accuracy and the breadth of companies they target. Additionally, some lists of companies are linked to organizations that have foreign policy motives that inform their work, which call into question their validity and the evenhandedness by which the organization evaluates ties to countries like Iran,” Reinsch wrote.
 
The letter also argues that not only are there no clear indications for how pension fund trustees are supposed to divest, “there appears to be no transparent process for trustees to decide which companies to divest from.” The letter contends that the bills’ broad divestment provisions could cost pensioners millions of dollars in transaction costs and threaten to “eliminate entire stock classes from the pool of potential investments, narrowing State pension fund managers’ choices and increasing the overall risk to the portfolio.”
 
Reinsch concluded, “Direct engagement – including utilizing direct diplomatic channels to governments in Iran and elsewhere – combined with efforts to engage our allies on concerted multilateral efforts are necessary to bring about the changes in behavior we all want to see. State sanctions impede this engagement, undermine the ability of the U.S. to speak with one voice, and frustrate cooperation with U.S. trading partners who often see them as a violation of U.S. international commitments.”
 
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.