Category: Press Releases and Statements

USA*Engage and NFTC Submit Comments to SEC on Concept Release

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Call Commission’s Activity on Enhanced Access to Company Disclosures ‘Inappropriate’
 
Washington DC – USA*Engage and the National Foreign Trade Council (NFTC) today sent formal comments to the U.S. Securities and Exchange Commission (SEC), recommending that the Commission reconsider its proposal to further develop mechanisms to facilitate greater access to companies’ disclosures concerning their business activities in or with certain countries designated as “state sponsors of terrorism.” In comments sent to the SEC, the associations noted that U.S. companies operating in such countries are conducting legal, legitimate business, and that the proposed mechanism actually punishes those companies who are most transparent.
 
“The proposed SEC tool is inherently flawed, and while the Commission is seeking comments on how to improve it, the fact is that it should have never been created,” said NFTC President and USA*Engage Co-Chair Bill Reinsch. “To have the SEC selectively posting the names of companies legitimately doing business is inappropriate, in part because it would discourage companies from reporting any activity in excess of what is absolutely required under securities law.”
 
The letter points out that “a web tool based on company disclosures is further flawed because there is no standard by which to report the nature or extent of business on a country-by-country basis across companies. As a result, companies with more robust reporting mechanisms would be penalized for voluntarily disclosing additional information.”
 
The letter also emphasizes that it would be “arbitrary for the Commission to provide enhanced access to information in this case but to ignore requests for the same enhanced access for companies doing business in countries on the State Department’s list of ‘Countries of Particular Concern’ contained in its Annual Report on International Religious Freedom, Tier 3 Countries named in the Department’s annual Trafficking in Persons Report, countries subject to enhanced U.S. export controls for reasons of weapons proliferation, or in the case of Sudan or future situations where the U.S. Government has declared that genocide is taking place.”
 
The associations, collectively representing small and large businesses that help to generate U.S. economic growth and development, also argue “regardless of the intent or method of enhanced access that the Commission would provide, the inevitable result of any disproportionate access would be to suggest a bias against companies that are highlighted.”
 
The letter points out anecdotally that some of the companies listed on a previous iteration of the SEC tool resulted in “their precipitous exit from legitimate sales, distribution and service relationships out of a desire on the part of management to disassociate themselves with whatever business caused the additional attention, even when that business was legitimate and legal under local and international law and immaterial to the company’s operations. These precipitous exits expose these companies to penalties and lawsuits by business partners for breaches of obligations.”
 
In closing, USA*Engage and the NFTC highlight that “it is inappropriate for such a company to be identified by a tool of the Commission when it is conducting legitimate business… It would be both unusual and inappropriate for the Commission to pursue this matter further.”
 
For a copy of the comments, please click here.

 
 
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.
 
 

USA*Engage Applauds New GAO Report Questioning Effectiveness of U.S. Sanctions Against Iran

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Washington, DC – USA*Engage Co-Chair Bill Reinsch today released the following statement in response to a report released this week by the U.S. Government Accountability Office (GAO), titled “Iran Sanctions: Impact in Furthering U.S. Objectives Is Unclear and Should Be Reviewed.” The report calls into question the effectiveness of U.S. sanctions against Iran and recommends that Congress and the Administration garner the appropriate information and tools to regularly evaluate their impact.
 
“We commend the GAO for producing this report and for asking the tough questions about unilateral sanctions that the NFTC and USA*Engage have been asking policymakers for more than a decade. Consistently, we have questioned why Congress does not more adequately scrutinize unilateral sanctions, the ways in which they are implemented, and whether they actually achieve intended results.
 
“Since the mid-1990s, when the USA*Engage coalition was formed, we have argued that ‘feel good’ unilateral sanctions guided by emotional impulse and the need to ‘do something’ are often ineffective and counterproductive. Unilateral sanctions, we’ve said, should be the last tool used in the U.S. foreign policy toolbox. That kind of go-it-alone approach alienates the United States from our allies whose support would be at the very least useful in putting increased multilateral pressure on sanctioned regimes or individuals.
 
“While the report focuses specifically on Iran, it more importantly raises the specter that U.S. sanctions policy is in need of reform, as called for by champions of diplomacy like Senator Richard Lugar and former Rep. Lee Hamilton.
 
“We have long been calling for the recommendations included in this report, primarily that Congress and the Administration, in the name of accountability, should evaluate and reevaluate our sanctions policy. Congress must require, and the Administration must establish, metrics to evaluate the effectiveness of sanctions.”
 
The GAO report concludes, “…the overall impact of sanctions, and the extent to which these sanctions further U.S. objectives, is unclear. On the other hand, some evidence, such as foreign firms signing contracts to invest in Iran’s energy sector and Iran’s continued proliferation efforts, raise questions about the extent of the sanctions’ impact. Moreover, U.S. agencies do not systematically collect information on the direct results of the multiple sanctions they implement, or their data do not provide specific information on Iran sanctions. These agencies have not conducted a baseline assessment of the impact of the sanctions. Collecting data on the results of multiple sanctions against Iran and conducting an overall baseline assessment is challenging, given all the agencies involved and the complexities of collecting some of the necessary information. However, without an overall assessment of the sanctions’ impact and subsequent reviews on a periodic basis, the Congress and the Administration will continue to lack important information for developing effective strategies to influence Iran’s behavior.” The report can be found here: http://www.gao.gov/new.items/d0858.pdf.  
 
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.
 
 

USA*Engage Marks Decade of Advocacy with Re-Launch of Web Site

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Features New Resources on U.S. Foreign Policy and Diplomacy
 
Washington DC – USA*Engage today re-launched its Web site, www.USAEngage.org, with new tools, issues pages, publications and other resources, which underscore the importance of diplomacy, trade and engagement between the United States and the international community.
 
“Ten years ago, U.S. foreign policy seemed to turn frequently to unilateral sanctions,” said USA*Engage Co-Chair Bill Reinsch. “Today, the pendulum seems to be swinging back in the same direction. This new Web site will be an excellent tool as we seek to reinforce the benefits of U.S. engagement and diplomacy in the world.”
 
Since its inception more than a decade ago, USAEngage.org has been widely recognized as a resource for information about U.S. unilateral sanctions policy. The redesigned Web site features new issues pages cataloging USA*Engage’s work on its priority issues as well as important publications from unaffiliated organizations. These priorities include: State and Federal sanctions; Diplomacy, Trade & Aid; Engaging Cuba; Rethinking Iran; the Alien Tort Statute; Export Controls Policy; and Visa Policy.
 
The site also includes new navigation and drop-down menus, making articles, legislative updates and publications easier to access. All information posted on the Web site prior to the beginning of 2008 can still be accessed through the site. An archives section preserves access to, and the format of, the coalition’s activities from 1997-2001.
 
Site visitors can also sign up on the homepage to receive timely updates on USA*Engage’s work.
 
The original USA*Engage Web site, which was launched in 1997 as an educational tool for policymakers to illustrate the diplomatic and economic costs of a U.S. foreign policy too reliant on unilateral sanctions, was one of the very first sites designed and used specifically for issue advocacy.
 
The new www.USAEngage.org web site was designed by Free Range Studios.
 
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, 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.