Category: Press Releases and Statements

NFTC Welcomes New Members of Congress and Dialogue on U.S. Trade Policy

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Washington DC – National Foreign Trade Council (NFTC) President Bill Reinsch today issued the following statement regarding the results of the midterm elections and the implications for U.S. trade policy.

 

“We look forward to continuing an open dialogue on trade issues with all members of Congress. We will continue to push for support and enactment of policies that promote an open, rules-based global trading system and which bring the current round of multilateral trade negotiations to a successful conclusion. The U.S. economy and American workers win when members of Congress work across the aisle to pass legislation that expands market access and opportunity for U.S. businesses around the world.”

 

“Throughout both sessions of the 109th Congress we have worked to build bipartisan support for trade legislation that has come before both houses. That will not change.”

 

“Only a little more than a decade ago, the U.S. House of Representatives demonstrated the great spirit of bipartisanship when they passed NAFTA by a vote of 234-200, with 132 Republicans and 102 Democrats voting in favor of the agreement. It is that bipartisan spirit for enacting important U.S. trade policy that we hope to see in the coming weeks and months. We look forward to working with the new leadership and advocating for broad bipartisan support on trade agreements aimed at opening market access for U.S. businesses.”

 

“Given the momentum building for approval of the U.S.-Peru Trade Promotion Agreement (PTPA), the granting of permanent normal trade relations (PNTR) to Vietnam, and renewal of expiring trade preferences, those are our top priorities for the next several weeks. We call on Congress to use the limited days left in the legislative calendar to approve PNTR before Vietnam completes its accession to the WTO. Without congressional approval, upon Vietnam’s accession, other WTO member nations will receive the full benefits of tariff reductions and other concessions that the nation made. The United States will not.”

 

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 Study Reports Use of U.S. Unilateral Sanctions on the Rise

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Washington, D.C. – New unilateral sanctions imposed by the United States are on the rise, according to a study by Professor Michael P. Malloy commissioned by USA*Engage and the National Foreign Trade Council (NFTC). This new Study of New U.S. Unilateral Sanctions: 1997-2006 reports that although the United States has imposed or threatened significantly more sanctions on countries during this period than in years past, these new sanctions tend to be more targeted than those prior to 1996.

“We are pleased that both Congress and the President have made an effort to take a more targeted approach to sanctions as opposed to imposing broad-based unilateral measures,” said NFTC President and USA*Engage Co-Chair Bill Reinsch. “The reality is that sanctions, no matter how well-intentioned, have the potential to add innumerable complications to our foreign policy and the good faith efforts of U.S. businesses trying to comply with and enforce what are often cumbersome rules.”

The study is a follow-up to a 2002 sanctions report commissioned by USA*Engage, which showed a decline in the imposition of U.S. unilateral sanctions. The new analysis by Professor Malloy, of University of the Pacific McGeorge School of Law, catalogs 125 new unilateral sanctions against 47 countries between 2002 and June 2006. During the same period, U.S. unilateral sanctions were lifted in whole or in part from 15 states. The new report also reveals that from 2001 to 2006, the imposition of sanctions against individuals and non-governmental organizations increased, generally as a response to heightened concerns about the threat of terrorism.
 

In addition, the study shows that during this five-year period, Congress imposed new unilateral sanctions at a rate more frequent than the President, and Congress in particular continues to demonstrate an interest in pursuing broader unilateral sanctions. This summer senior U.S. Senators, backed by the Administration, thwarted such an effort to impose broad sanctions against Iran, as proposed in an amendment to the Defense Authorization Bill. These sanctions, if enacted, would have undermined multilateral diplomacy by isolating the United States from our allies around the globe.

“Though we are optimistic about the shift towards a more targeted approach, we will continue to press the Administration and Congress to consider the full impact of future unilateral sanctions proposals,” continued Reinsch. “Nobody would doubt the appropriateness of targeted sanctions aimed at freezing terrorist assets or for other important national security reasons. But as the lengthy catalog of sanctions and economic levers in this study shows, there is a patchwork of measures and potential measures already on the books. The U.S. Government needs to consider any new sanctions with great care.“

A complete copy of the new study is available at www.usaengage.org.

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, 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.

 

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 ITSSD Article on Brazil, IPRs and Innovation

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In a new article appearing in the peer-reviewed International Journal of Economic Development (IJED) (www.spaef.com/IJED_PUB/v8n1-2.html ), which is preceded by three expert commentaries, Lawrence Kogan of the Institute for Trade, Standards and Sustainable Development (ITSSD) explains why it is in Brazil’s and other ‘BRIC’ nations’ best interests to pursue a national innovation policy premised on IP-based scientific and technological innovation rather than IP opportunism.

 

The article discusses how, in today’s evolving global knowledge society, patents and trade secrets are economically valuable assets that are important to domestic as well as foreign investors, especially knowledge and technology-rich internationally focused companies. Furthermore, the article analyzes numerous studies that collectively describe how the establishment of a market-friendly national enabling environment that includes strong recognition and protection of temporary but exclusive private intellectual property rights will enable Brazil to attract the research and development-related foreign direct investment and technology transfers, and to realize numerous other incidental spillover benefits, that will dramatically improve its domestic industries, enhance its educational and health systems and satisfy its national innovation needs.

 

The article is entitled, Rediscovering the Value of Intellectual Property Rights: How Brazil’s Recognition and Protection of Foreign IPRs Can Stimulate Domestic Innovation and Generate Economic Growth ©.

 

The full article, abstract, table of contents and commentaries are accessible at:  (http://www.itssd.org/white_papers.htm ).

 

The executive summary is accessible at: (http://www.itssd.org/pdf/ITSSD-BrazilPaper-ExecSummaryI.pdf )

 

 

USA*Engage and NFTC Release Trade and Engagement Report Card for 109th Congress

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WASHINGTON, DC – USA*Engage and the National Foreign Trade Council (NFTC) today issued their report card for the 109th Congress, which grades Members on their voting records on key issues affecting trade, unilateral sanctions and global engagement.

“We commend Congress for passing important trade legislation this session, including free trade agreements with Bahrain, Oman and the Central American countries, as well as overwhelmingly reaffirming our commitment to the World Trade Organization,” said NFTC President and USA*Engage Co-Chair Bill Reinsch, who also applauded Senators for their votes against an amendment to impose new sanctions on Iran. “Thanks to strong bipartisan leadership by Senators Warner, Biden, Hagel and Levin, good policy won the day and this legislation – which would have been detrimental toU.S. diplomatic efforts – was defeated.”

He added, though, that in some ways the results were disappointing from the standpoint of global engagement. “The China enforcement bill [H.R. 3283] was particularly worrisome, as many Members who voted against it simply wanted to make already bad legislation even worse,” said Reinsch, who also sounded a cautionary note on U.S. sanctions policy: “It is an easy vote to approve sanctions on a regime like the one on Burma. However, Members must examine whether unilateral sanctions are having their intended effect and consider what other damage they might be doing to ordinary people in the target country. U.S. values and foreign policy objectives are better pursued through diplomacy and engagement.”

The 109th Congressional Trade and Engagement Report Card was prepared at the request of USA*Engage and NFTC member companies and associations. The organizations have tabulated and analyzed Congressional voting patterns on trade and engagement since 1997. The Report Card scored Senators on 12 votes and House Members on 14 votes, and weighted the vote on CAFTA twice.

Two House Members – Jeff Flake (R-AZ) and Vic Snyder (D-AR) – received an A+ with the highest score of 14, while Senators Chuck Hagel (R-NE) and Richard Lugar (R-IN) received an A+ with a score of 12.

Jake Colvin, Director of USA*Engage, noted that the votes on visa issues and free trade agreements demonstrate that open markets and engagement are important to large majorities of Members, though bipartisanship on some trade issues had slipped from earlier sessions of Congress. “Overall we remain optimistic about the prospects for increased bipartisan support for trade and engagement.”

Colvin concluded, “There are a number of important issues that we expect to come before Congress in November and in 2007 – from granting normal trade relations to Vietnam to extending trade preferences for developing countries to considering pending free trade agreements – that warrant and require strong bipartisan support.”

A complete breakdown of the voting records and individual grades is available at http://www.usaengage.org/MBR0088-USAEngage/default.asp?id=152

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 (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, 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.

Seven States Consider Sanctions Legislation As NFTC Moves against Illinois Law on Sudan

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International Trade
Seven States Consider Sanctions Legislation
As NFTC Moves Against Illinois Law on Sudan

The National Foreign Trade Council (NFTC) Aug. 7 filed a lawsuit challenging an Illinois law imposing sanctions against companies with ties to Sudan, saying that six other states have enacted similar legislation and seven more states were considering related punitive measures, including Texas and California.

Joining the NFTC as plaintiffs in the llinois case (NFTC v. Topinka) were eight boards of public employee pension funds, along with nine individuals.

William A. Reinsch, president of the NFTC, said that the lawsuit–filed in the Federal District Court for the Northern District of Illinois–was meant to send a signal to other states that the U.S. Constitution limits the conduct of foreign policy to the federal government and not the states.

“We believe the Constitution intends that the president should have the flexibility to craft foreign policy that combines incentives and disincentives intended to change the behavior of foreign governments, like Sudan, and that sanctions imposed by individual states or local governments inevitably end up tying the president’s hands,” Reinsch said. “The Illinois law inflicts pain for no gain, with the pain falling particularly on the pension funds of police officers and firefighters who have put their lives on the line to protect the citizens of Illinois.”

Reinsch told reporters that the lawsuit against Illinois’ “Act to End Terrorism and Atrocities in Sudan,” which took effect on Jan. 27, rests on a unanimous ruling by the U.S. Supreme Court in 2000 that a Massachusetts law applying sanctions against Burma was unconstitutional because it could undermine the president’s ability to conduct effective diplomacy (Crosby v. National Foreign Trade Council, U.S., No. 99-474, 6/19/00).

The NFTC, which represents some 300 U.S. companies with interests in international trade and investment including The Boeing Co., Caterpillar Inc., Chevron Corp., Exxon Mobil Corp., Microsoft Corp., Ford Motor Co., and General Motors Corp., said that eight Illinois pension funds had joined the NFTC as plaintiffs in the case because the Sudan sanctions law will force them to divest of some mutual funds and other equities and accept lower yields in alternative investment vehicles, primarily in the bond market.

Winston & Strawn LLP has been retained by the NFTC to litigate the case.


Injunctive Relief Sought


The NFTC and the other plaintiffs also plan to file a motion for injunctive relief to prevent the continued implementation of the Illinois law during the course of the lawsuit, officials said.

Under the Illinois law, banks and other financial institutions will be required to certify that their borrowers have no direct or indirect business ties to Sudan, and it will prohibit the state from using such institutions as depositories for state funds unless they can so certify.

The NFTC said that a U.S. company, for example, could be considered a “forbidden entity” if an affiliate in Europe operates a hotel in Khartoum or a joint venture in China sells a household product to a distributor in Sudan.

Under the law, public employee pension funds in Illinois will also be prohibited from holding shares of companies designated as forbidden entities and are being required to liquidate their holdings of equities and international mutual funds that contain shares of such entities.

“The ultimate losers will be the individual and corporate taxpayers who serve as the state’s definitive guarantors of all pension obligations,” the NFTC said.


Seven States Consider Similar Laws


Six other states–Arizona, Connecticut, Maine, New Jersey, Louisiana, and Oregon–have enacted legislation imposing sanctions against Sudan or terrorism-supporting countries, according to the NFTC, and seven additional states are considering similar measures: California, Georgia, Iowa, Massachusetts, Missouri, Rhode Island, and Texas.

Legislation now before the California Senate, for instance, would prohibit the California Public Employees’ Retirement System and the California State Treasurers’ Retirement System from investing in companies with active business operations in Sudan and would require them to sell or transfer their existing holdings by Jan. 1, 2008.

The legislation (AB 2941) was approved by the state Senate Committee on Public Employment and Retirement in June of this year, and the Senate Judiciary Committee has scheduled a hearing on the bill for later this month.

A bill pending consideration in the Texas state House (HB 815) would prohibit state funds from being invested in equities or obligations of private corporations or other private business entities doing business in Sudan.

Several related measures, however, have died in committee in a number of states, including Indiana, Kansas, Maryland, and New York.

Then-President Clinton banned U.S. trade and investment with Sudan by Executive Order in 1997, and Congress codified those sanctions in 2003 as part of the so-called Sudan Peace Act.End of article graphic

Seven States Consider Sanctions Legislation As NFTC Moves against Illinois Law on Sudan

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The National Foreign Trade Council (NFTC) Aug. 7 filed a lawsuit challenging an Illinois law imposing sanctions against companies with ties to Sudan, saying that six other states have enacted similar legislation and seven more states were considering related punitive measures, including Texas and California.

Joining the NFTC as plaintiffs in the llinois case (NFTC v. Topinka) were eight boards of public employee pension funds, along with nine individuals.

William A. Reinsch, president of the NFTC, said that the lawsuit–filed in the Federal District Court for the Northern District of Illinois–was meant to send a signal to other states that the U.S. Constitution limits the conduct of foreign policy to the federal government and not the states.

“We believe the Constitution intends that the president should have the flexibility to craft foreign policy that combines incentives and disincentives intended to change the behavior of foreign governments, like Sudan, and that sanctions imposed by individual states or local governments inevitably end up tying the president’s hands,” Reinsch said. “The Illinois law inflicts pain for no gain, with the pain falling particularly on the pension funds of police officers and firefighters who have put their lives on the line to protect the citizens of Illinois.”

Reinsch told reporters that the lawsuit against Illinois’ “Act to End Terrorism and Atrocities in Sudan,” which took effect on Jan. 27, rests on a unanimous ruling by the U.S. Supreme Court in 2000 that a Massachusetts law applying sanctions against Burma was unconstitutional because it could undermine the president’s ability to conduct effective diplomacy (Crosby v. National Foreign Trade Council, U.S., No. 99-474, 6/19/00).

The NFTC, which represents some 300 U.S. companies with interests in international trade and investment including The Boeing Co., Caterpillar Inc., Chevron Corp., Exxon Mobil Corp., Microsoft Corp., Ford Motor Co., and General Motors Corp., said that eight Illinois pension funds had joined the NFTC as plaintiffs in the case because the Sudan sanctions law will force them to divest of some mutual funds and other equities and accept lower yields in alternative investment vehicles, primarily in the bond market.

Winston & Strawn LLP has been retained by the NFTC to litigate the case.

 

Injunctive Relief Sought


The NFTC and the other plaintiffs also plan to file a motion for injunctive relief to prevent the continued implementation of the Illinois law during the course of the lawsuit, officials said.

Under the Illinois law, banks and other financial institutions will be required to certify that their borrowers have no direct or indirect business ties to Sudan, and it will prohibit the state from using such institutions as depositories for state funds unless they can so certify.

The NFTC said that a U.S. company, for example, could be considered a “forbidden entity” if an affiliate in Europe operates a hotel in Khartoum or a joint venture in China sells a household product to a distributor in Sudan.

Under the law, public employee pension funds in Illinois will also be prohibited from holding shares of companies designated as forbidden entities and are being required to liquidate their holdings of equities and international mutual funds that contain shares of such entities.

“The ultimate losers will be the individual and corporate taxpayers who serve as the state’s definitive guarantors of all pension obligations,” the NFTC said.

 

Seven States Consider Similar Laws


Six other states–Arizona, Connecticut, Maine, New Jersey, Louisiana, and Oregon–have enacted legislation imposing sanctions against Sudan or terrorism-supporting countries, according to the NFTC, and seven additional states are considering similar measures: California, Georgia, Iowa, Massachusetts, Missouri, Rhode Island, and Texas.

Legislation now before the California Senate, for instance, would prohibit the California Public Employees’ Retirement System and the California State Treasurers’ Retirement System from investing in companies with active business operations in Sudan and would require them to sell or transfer their existing holdings by Jan. 1, 2008.

The legislation (AB 2941) was approved by the state Senate Committee on Public Employment and Retirement in June of this year, and the Senate Judiciary Committee has scheduled a hearing on the bill for later this month.

A bill pending consideration in the Texas state House (HB 815) would prohibit state funds from being invested in equities or obligations of private corporations or other private business entities doing business in Sudan.

Several related measures, however, have died in committee in a number of states, including Indiana, Kansas, Maryland, and New York.

Then-President Clinton banned U.S. trade and investment with Sudan by Executive Order in 1997, and Congress codified those sanctions in 2003 as part of the so-called Sudan Peace Act.End of article graphic

NFTC Urges WTO Negotiators to Go the Extra Distance to Restart Doha Trade Talks

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Calls for Getting Back to First Principles and Ambitious Objectives

Washington, DC – The NFTC today issued the following statement regarding situation in the WTO’s Doha Round of trade negotiations:

Mary Irace, NFTC Vice President for Trade and Export Finance, today urged WTO Members to go the extra distance to restart the suspended Doha Round negotiations.

Irace, who has just completed an intensive series of meetings with ambassadors and other senior officials in delegations to the WTO, noted, “The disappointment of the business community at the failure to make a break through on agriculture is clearly shared by WTO representatives in Geneva. At this critical moment we could see the enormous promise of the Doha Round just slip away. Failure would create serious risk and uncertainty in the global economy which would hurt prospects for world growth and development, and potentially sap business confidence.”

Following her meetings in Geneva, Irace noted, “I am impressed that delegations are already reengaging to try to find a way forward. The suspension of the talks was a wake-up call. Do WTO Members want a credible multilateral trading system that expands trade with widespread economic benefits?  Or will WTO Members pursue a harmful zero-sum approach to global trade policy making which reduces growth and economic opportunity? The NFTC believes it is time to get back to basics and push for real trade opening as a way to raise living standards worldwide.”

“The NFTC considers that success will require political will and vision from all the major partners. Certainly the US and the EU have critical roles to play, but so do advanced developing countries where the lion’s share of global growth will occur over the next 20 years. It is time that all those countries with a stake in open markets stood up to be counted. This certainly includes China as the world’s number three trader, but it also means that smaller developing and developed countries must play a bigger role in the search for an ambitious outcome,” Irace stated.

“Paring back ambition is clearly not the way forward. A major outcome with commercially meaningful results is the only way to build a strong foundation for the global economy in the years ahead,” Irace added.

 

 

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 Applauds Senate Finance Committee for Timely Action on U.S.-Peru Trade Agreement

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Washington, DC – The National Foreign Trade Council today praised the Senate Finance Committee for its prompt evaluation of the U.S.-Peru Trade Promotion Agreement (PTPA). Today’s mock markup follows a House Ways and Means Committee hearing on the agreement held July 12, 2006.

 

“The committee’s action today on the PTPA sends an important signal that Congress looks to move forward on the agreement within a reasonable time frame and with all appropriate consideration,” said Anne Alonzo, National Foreign Trade Council Senior Vice President. “The agreement is solidly constructed and is designed to broaden economic opportunities for the U.S. business community, our workforce and consumers,” said Alonzo.

 

Under the terms of the agreement, there will be continued and increased market access for U.S. goods, including machinery, agricultural exports, plastics and other products. Last year, two-way trade between the United States and Peru reached $7.4 billion, with $2.3 billion coming from U.S. exports.

 

“The agreement is important to U.S. efforts to enhance trade relations and promote economic growth and development in Central and South America,” said Alonzo, who is also Co-Chair of the Hispanic Alliance for Free Trade (HAFT). “It also provides opportunities for Hispanic businesses, which often have many cultural connections to the region, to benefit from the proposed tenants of the agreement.”

 

The provisions of the PTPA eliminate tariffs and other barriers to trade between the two countries. Currently, under the Andean Trade Promotion and Drug Extradition Act (ATPDEA) set to expire in December, many exports from Peru enter the United States duty-free, while U.S. goods and services are assigned an average weighted tariff of roughly nine percent. However, implementation of the PTPA will level this differential and allow for reciprocal market access, forging a mutually beneficial commercial partnership between the U.S. and Peru.

 

“We are encouraged by both chambers’ timely review of the PTPA and we ask that members continue to move swiftly to implement the agreement,” concluded Alonzo.

 

 

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 Praises Senate Finance Committee for Vote on U.S.-Vietnam PNTR Legislation

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Calls for Similar Prompt Action in House Ways and Means

 

Washington, DC – The National Foreign Trade Council today issued a statement praising the Senate Finance Committee for favorably voting on legislation aimed at providing Permanent Normal Trade Relations (PNTR) treatment to Vietnam.

 

“Today’s markup of legislation providing PNTR to Vietnam indicates the strong support for this important final step in normalization of relations with Vietnam,” said NFTC President Bill Reinsch. “There seems to be little question of the value of this measure.  Granting PNTR is necessary to ensure that the United States receive the full benefits of Vietnam’s WTO market-opening and rules commitments upon Vietnam‘s accession to the WTO.  The question now is timing,” added NFTC President Bill Reinsch.

 

Vietnam’s WTO accession is expected to occur in October.  With the House already in recess, and the Senate next week, the granting of PNTR must be taken up in September for the United States not to have to file a non-application clause upon Vietnam’s accession.  In addition, President Bush is expected to travel to Hanoi in November.

 

“We urge prompt Congressional action.  It is vital that PNTR be granted prior to these important fall dates so that the U.S. can continue to grow trade with Vietnam and advance American foreign policy objects in Southeast Asia,” 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.