NFTC Applauds Senate Finance Committee for Scheduling Hearing on U.S.-Peru Trade Agreement

Washington, D.C. The National Foreign Trade Council (NFTC) today commended the Senate Finance Committee for scheduling a September 11 hearing to consider the U.S.-Peru Trade Promotion Agreement (PTPA). The Peru agreement is one of four pending free trade agreements (FTA) currently awaiting Congressional approval, with the others being Colombia, Panama and South Korea.

 

“We thank Chairman Baucus and Ranking Member Grassley for their leadership in making the Peru trade agreement a priority for the Senate so soon after the August recess,” said NFTC President Bill Reinsch. “Timely consideration and approval of the PTPA is important to send a signal to our trading partners in Peru and the rest of Latin America that we value our commercial relationship with the region.”

 

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.

 

“This agreement is well crafted and is commercially important to both the U.S. and Peruvian business communities,” said Mary Irace, NFTC Vice President for Trade and Export Finance. “The announcement of next week’s hearing sets the stage for the start of the formal Congressional review process and helps pave the way for approval of this agreement.”

 

The proposed agreement would eliminate tariffs and other barriers to trade between the U.S. and Peru. Under the PTPA, 80% of consumer and industrial goods and more than two thirds of U.S. agricultural exports will become duty-free immediately upon implementation of the agreement. The majority of remaining tariffs on U.S. farm exports would be gradually phased out over 15 years, with all to be eliminated in 17 years.  The text of the agreement was modified in recent months to include robust chapters on labor and the environment, following the bipartisan agreement on trade reached between Congress and the Administration in early May.

 

“We urge the House to follow suit and begin scheduling hearings on the Peru agreement, as well as work with the Senate to consider and approve the other three pending trade agreements as soon as possible during this legislative session,” concluded 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.

 

USA*Engage Welcomes New Co-Chairman Del Renigar

Washington DC – The National Foreign Trade Council (NFTC) and USA*Engage today announced the appointment of Del Renigar as Co-Chairman of USA*Engage. Renigar serves as Corporate Counsel for International Policy & Trade Regulation for General Electric (GE) Company.

 

“There is no one more qualified than Del to take on the role of providing solid counsel, direction and leadership to USA*Engage,” said USA*Engage Director Jake Colvin. “Del brings with him many years of foreign policy and trade experience from both the public and private sectors, which we will draw upon to help move forward the mission of the organization.”

                                                                                                         

Renigar currently counsels all GE businesses on trade controls and anti-bribery compliance and global public policy, trade, investment, and market access issues. Before joining GE, Renigar served on the National Security Council at the White House and at the Commerce Department.

 

“It is a critical time for USA*Engage and its member companies to work with federal, state and local policymakers on a positive agenda that takes advantage of the complementary nature of U.S. foreign policy, national security and economic interests and that encourages dialogue, engagement and multilateralism as important tools in pursuing those interests, ” said Renigar.

 

Prior to his federal government service, Renigar was an attorney with Steptoe & Johnson LLP in Washington, DC where he maintained a broad international practice.

 

Renigar will succeed Robert Haines, International Senior Adviser for Exxon Mobil Corporation, who served as Co-Chairman of USA*Engage since 2003 and who will retire from the company at the end of the month. Haines has also been a member of the Board of the National Foreign Trade Council for 10 years.

 

“Both NFTC and USA*Engage are sincerely grateful for all of the contributions Bob has made to help achieve the mission of USA*Engage since it was established a decade ago,” said NFTC President and USA*Engage Co-Chair Bill Reinsch. “We appreciate Bob’s many years of service to the organization as a thoughtful leader and contributor and we wish him all the best in his future endeavors.”

 


 

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.

 

 

 

House Majority Leader Steny Hoyer to Keynote NFTC’s 93rd Annual World Trade Dinner

Rep. Hoyer to Provide Outlook on U.S. Trade and Diplomacy

Washington DC – The National Foreign Trade Council (NFTC) today announced that U.S. House of Representatives Majority Leader Steny Hoyer will deliver the keynote address during the organization’s annual World Trade Dinner and Award Ceremony, which will take place Tuesday, October 2, 2007, at the Corcoran Gallery of Art, in Washington, D.C. Representative Hoyer is slated to share his views on the bipartisan way forward on trade-related issues, including pending trade agreements, sanctions and other timely topics relevant to the international diplomatic community.

 

 

“We are honored to have Congressman Hoyer deliver this year’s keynote address and we thank him for his leadership in urging fellow Members of Congress to work together in a bipartisan way to make real progress on issues of importance to the U.S. economy,” said NFTC President Bill Reinsch.

 

 

Last November Congressman Hoyer was elected to serve as House Majority Leader in the 110th Congress, following two successive terms as the Democratic Whip. Currently, Rep. Hoyer plays a key role in helping House Democrats determine their legislative agenda and building broad support for the Party’s policy priorities. He represents Maryland‘s Fifth Congressional District and is currently serving his 14th term.

 

 

“During his tenure in the House, Rep. Hoyer has demonstrated a keen understanding of the importance of an open, rules-based trading system to economic growth and jobs for American manufacturers, farmers, workers and their families,” said Reinsch.

 

 

Traditionally, public officials and members of the trade policy and U.S. business communities attend the NFTC World Trade Dinner. Recent speakers include United States Trade Representative, Ambassador Susan Schwab; Secretary General of the United Nations, Kofi Annan; Director of National Intelligence, John D. Negroponte, and several Heads of State.

 

 

Members of the media are welcome to attend but must RSVP to Eric Thomas or Jennifer Cummings at The Fratelli Group, (202) 822-9491 (ethomas@fratelli.com or jcummings@fratelli.com).

 


 

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 Express Support for Biden-Lugar Sudan Resolution

International Diplomacy and Multilateral Pressure Essential to Resolving the Conflict

 

Washington DC – USA*Engage and the National Foreign Trade Council (NFTC) today expressed support for a resolution introduced by Senate Foreign Relations Committee Chairman Joseph Biden (D-DE) and Ranking Member Richard Lugar (R-IN), which would put increased multilateral pressure on the government in Khartoum and further involve the international community in helping the people of Darfur to secure peace.

 

“We applaud the dedication and leadership of Senators Biden and Lugar for introducing and building unanimous support for legislation that will allow the United States and the rest of the international community to respond to the crisis in Darfur in a truly effective way,” said NFTC President Bill Reinsch. “While many state and national lawmakers have turned to unilateral or local divestment campaigns as a means to affect change in Sudan, these strategies do very little to actually help the people of Darfur. The United States and our allies should focus efforts instead on the multilateral approach outlined by the Senators.”

 

The resolution calls on the United States and our international allies to supply materials and equipment necessary to complete a successful peacekeeping mission. In addition, the legislation includes provisions that pave the way for the development of a comprehensive peace agreement to be reached through high-level diplomatic talks. The Biden-Lugar resolution also calls on the international community to impose multilateral sanctions if the government in Khartoum does not keep its word on commitments made.

 

 “Senators Biden and Lugar have it exactly right – uniting the international community around a plan of action is the way to effect change in Darfur,” said USA*Engage Director Jake Colvin. “We thank the Senators for their thoughtful, internationalist approach to conflict resolution.”

 


 

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.

 

New Report Underscores Ineffectiveness of Unilateral Sanctions with Extraterritorial Reach

Details Countermeasures Enacted by Countries to Prohibit Compliance

 

Washington DC – Some of the United States’ closest trading partners are responding to U.S. extraterritorial sanctions by enacting countermeasures and other means to block their application in foreign jurisdictions, according to a new report by the law firm of Dewey Ballantine LLP.  The paper, Foreign Sanctions Countermeasures and Other Responses to U.S. Extraterritorial Sanctions, was commissioned by USA*Engage and the National Foreign Trade Council (NFTC) and reports that despite the United States maintaining old and enacting new unilateral sanctions with extraterritorial reach, many of our allies have opposed them with countermeasures, thwarting their intended effects.

 

“The reality is that sanctions are only effective if they’re widely applied. Unilateral sanctions by far represent the most ineffective means to impact a foreign government or persons whose policies and behavior we disagree with or want to change,” said NFTC President Bill Reinsch. “The same is true for unilateral sanctions that extend beyond our borders and attempt to affect the behavior of entities, companies or persons overseas. These measures put companies in the impossible position of violating someone’s law no matter what they do.”

 

The report, written by Harry Clark and Lisa Wang of Dewey Ballantine, chronicles the history of nations using blocking statutes, trade complaints, U.N. declarations and other countermeasures to criticize, block or sidestep U.S. sanctions. As the paper points out, “During the Cold War, U.S. allies obstructed U.S. extraterritorial sanctions on the supply of materials for Soviet Union gas pipelines in Europe. Since the end of the Cold War, U.S. trading partners have supplemented blocking measures by challenging U.S. sanctions as being contrary to World Trade Organization (WTO) trade agreements.”

 

The paper notes, however, that while this trend has a long history, U.S. trading partners are now employing new, more creative means to avoid application of U.S. extraterritorial sanctions. Countries are not only using countermeasures consciously to block U.S. sanctions, but are also enacting civil rights laws and other legal defenses to justify not applying sanctions.

 

The report concludes by noting that, extraterritorial sanctions “could impede U.S. leadership and international collaboration needed to advance U.S. national security and foreign policy interests, including coordination to suppress international terrorism…[C]onflicts with authorities in other major economies, like the EU, are placing U.S. companies at risk of legal double jeopardy.  It would be useful to consider whether these types of disadvantages are outweighed by any utility from applying foreign policy sanctions extraterritorially.”

 

The release of the paper comes on the heels of votes Tuesday in the House of Representatives on Iran and Sudan sanctions legislation, which would target foreign companies doing business in those countries.

 

“Just this week we saw the House approve a measure that would expand the scope of sanctions against Iran to reach foreign subsidiaries of U.S. companies in Europe and Asia,” said USA*Engage Director Jake Colvin. “If, at the end of the day, those governments block the sanctions, or lodge complaints with us or the WTO, you start to become concerned that the good intentions of Congress might lead to an unproductive outcome.”

 

For a copy of the report, 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.

 

 

NFTC and Development Finance International Urge Congress to Recognize Need for World Bank Reform

Willkens Says Private Sector Interaction Key to Achieving Bank’s Overall Mission

 

Washington DC ­- In testimony today before the Senate Banking Committee, Diane Willkens, President and CEO of Development Finance International, Inc. (DFI) and member of the National Foreign Trade Council (NFTC) World Bank working group, stressed the need for increased private sector input and transparency in policy making at the World Bank.

 

 “With the shift in the World Bank’s relative importance given the abundance of capital liquidity around the globe, it is in the Bank’s own interest to find new flexible ways of working with others, including the private sector,” Willkens stated in remarks delivered on behalf of both the NFTC and DFI. “The World Bank should better recognize that the private sector is both a key stakeholder and enabler of sound economic development. It should incorporate the private sector into its planning and operations.”

 

For example, Willkens noted that many successful U.S. corporations have proven best practices that could be leveraged appropriately to achieve the Bank’s goals of increased economic growth and development worldwide. Willkens acknowledged past circumstances where the Bank has called for private sector input but noted that industry should be “viewed more as a partner than as an afterthought in the development of major new policies.”

 

In addition to working more strategically with the private sector, Willkens also highlighted the need for the Bank to reform and fortify its internal policies. “The Bank should push forward with critical initiatives on governance and anti-corruption. It should strengthen its role in promoting accountable and transparent practices, especially in procurement, which is an area that is most susceptible to corruption on both the demand and supply side,” Willkens stated.

 

“The private sector from the U.S. and several European countries has been very concerned about recent developments to abandon World Bank international best practices in procurement policies that effectively lower Bank standards on international competitive bids and adopt a more hands-off approach,” Willkens continued. “These moves go against the Bank’s recent important overall initiatives on anticorruption and improved governance.”

 

In early June, the NFTC joined six other leading trade associations in urging the Bank to allow feedback from the private sector regarding its newest proposal for changes in procurement polices. The World Bank’s “Use of Country Systems in Bank Supported Operations” Status Report dated May 8, 2007, was released to the Bank’s Executive Directors in June without any opportunity for the private sector to review and provide input. 

 

Willkens concluded, “The challenges facing the World Bank are many as the institution defines its changing role. The private sector is committed to working with the Bank in constructive approaches to the development challenges and opportunities before us.”

 

Please click here for a copy of the testimony.


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 Express Concern Over Approval of Sanctions and Divestment Bills in the House

Washington DC – USA*Engage and the National Foreign Trade Council (NFTC) today expressed disappointment in the approval of three sanctions and divestment-related bills by the House of Representatives.

“While the intention behind the divestment legislation (H.R. 2347 and H.R. 180) is beyond reproach, enabling states to become more involved in foreign policy is likely to complicate the ability of the President and Congress to make foreign policy decisions in the future,” said NFTC President Bill Reinsch. “We are pleased with the work that went into revising H.R. 180 to make it more targeted, but continue to believe that foreign policy sanctions by states may undermine the ability of the U.S. to speak with one voice.  These things may also frustrate cooperation with U.S. trading partners who often see them as a violation of U.S. international commitments.”

In particular, passage of H.R. 2347, which would enable state divestment from companies doing business in Iran, undercuts the assertion made in the Darfur Accountability and Divestment Act (H.R. 180) that “Congress acknowledges that divestment should be used sparingly and under extraordinary circumstances.”

Reinsch continued, “Through these bills, Congress is setting the stage for more attempts by state legislatures to divest from other countries, including potentially Russia and China, or the hot-button social issue of the day. State legislators are unlikely to wait for Congress’ blessing before attempting to divest for other reasons down the road.”

Since its introduction, the NFTC and USA*Engage have also opposed H.R. 957, a bill that seeks to expand the scope of the Iran Sanctions Act by imposing new U.S. sanctions on a number of companies in Europe and Asia.

“The Iran sanctions bill that passed the House today may backfire in terms of its intended impact. At the same time the United States is working with our allies to come up with a truly multilateral approach, Members of Congress have confused multilateral with extraterritorial and passed counterproductive unilateral legislation,” said Reinsch.

When the sanctions bill was first reported by the House Foreign Affairs Committee earlier in the year, the NFTC and USA*Engage joined five other trade associations in sending a letter to Chairman Lantos and Ranking Member Ros-Lehtinen to express concern. The groups highlighted the potential for legal issues resulting from the extension of penalties to cover the activities of foreign subsidiaries of U.S. companies.  The associations observed in the letter that “governments could implement blocking statutes and other measures to counteract the threat of U.S. penalties.”

At the same time, the NFTC and USA*Engage acknowledged the leadership of the House Ways and Means and Financial Services Committees for amending the bill to provide flexibility to the executive branch.


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 Opposes Anti-Tax Treaty Legislation

Washington, DC  – The National Foreign Trade Council (NFTC) today expressed serious concern that the leadership of the House of Representatives may fast track a discriminatory tax bill introduced just yesterday by Rep. Lloyd Doggett (D-TX) to pay for the Farm Bill, which is set for a vote on the House floor Thursday. The legislation aimed solely at U.S. subsidiaries of foreign-based companies could represent a tax increase of $7.5 billion on these companies.

 

 

 

Rep. Doggett’s bill (“Fairness in International Tax”) would only apply to U.S. subsidiaries of foreign-based companies. The legislation is in direct violation of many of the bilateral tax treaties negotiated by the Treasury Department and affirmed by the Senate because it forces companies to pay higher withholding tax rates on payments (royalties, interest or management fees) to their foreign affiliates. It may also result in retaliatory action by U.S. tax treaty partners against U.S. based companies with foreign-based affiliates. This legislation, which represents a major change to U.S. tax law, has never been the subject of a hearing.

“This legislative proposal results in a protectionist tax hike on companies bringing jobs into the United States,” said Bill Reinsch, President of the NFTC, an association of some 300 U.S. business enterprises engaged in all aspects of international trade and investment. “Our global trading partners are already concerned about trade protectionism in Congress, the imposition of a new discriminatory tax on U.S. affiliates of foreign-based companies won’t be well received in the international marketplace and will invite retaliation.”

Congressman Doggett accuses foreign companies of engaging in unfair tax practices that harm the competitiveness of U.S. based companies. However, the Doggett legislation impacts operations in the United States, like the Samsung semiconductor plant in Austin, Texas where thousands of Doggett’s own constituents work.

According to Reinsch, “The NFTC would like Members of Congress to understand before they vote, that this tax provision will harm the ability of the U.S. to enter into or amend tax treaties in the future. If the U.S. cannot be relied upon to uphold tax treaty obligations, other countries will be less willing to enter into negotiations with the U.S. The threat to the tax treaty network could result in the increased incidence of double taxation of U.S. based companies.”

U.S. subsidiaries of foreign companies provide 5.1 million jobs, supporting an annual payroll of $324.5 billion.

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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.