Press Releases and Statements Archives - Page 7 of 104

NFTC Statement on U.S. Removal of Support from WTO e-Commerce Initiative Proposals

Posted on October 25, 2023October 25, 2023 by Marshall Lane

Washington D.C. – In response to the statement by USTR that the United States would withdraw support for key elements of a digital economy agenda at the World Trade Organization, NFTC President Jake Colvin released the following reaction:

“It’s astonishing to see the United States essentially abdicate its leadership role in writing the digital rules for the global economy and preventing illegal trade discrimination and burdensome barriers against American interests.

“Digitally-enabled trade facilitates more effective access to international markets for American farmers, ranchers, service companies and manufacturers, who rely on the global reach of a range of U.S. technology providers to succeed.

“This decision by the Biden Administration is short-sighted and will cause long-term harm for American businesses of all sizes, as well as innovators and workers who depend on digitally-enabled trade to reach global markets. It’s particularly problematic for small businesses and undermines efforts to support more inclusive access by women and underserved communities to the global marketplace. This move also contradicts widespread calls from both sides of the aisle in Congress for more aggressive U.S. leadership on digital trade.”

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About the NFTC

The National Foreign Trade Council (NFTC) is the premier business association advancing trade and tax policies that support access to the global marketplace. Founded in 1914, NFTC promotes an open, rules-based global economy on behalf of a diverse membership of U.S.-based businesses.

NFTC Statement in Response to the Release of the USITC Report to Analyze Effects of TRIPS Waiver

Posted on October 18, 2023 by Veronica Berkshire

WASHINGTON DC – National Foreign Trade Council (NFTC) President Jake Colvin today issued the following statement following the release of the U.S. International Trade Commission (USITC) report on “COVID-19 Diagnostics and Therapeutics: Supply, Demand, and TRIPS Agreement Flexibilities:”

“NFTC welcomes the USITC’s report analyzing the impact that weakening IP protections on COVID-related products might have on the U.S. and around the world.

“The findings of this report support the idea that global collaboration on other regulatory and trade facilitation measures can improve access to COVID-related products and ought to be the focus of policymakers. We will continue to work with stakeholders ahead of the WTO’s next ministerial meeting in early 2024 to encourage the implementation of global best practices to support access to COVID-19 diagnostics and therapeutics and better address future pandemics.

“Weakening IP protections would harm the U.S. economy and impair innovation that will be critical to developing new life-saving products, and won’t contribute to improved access to these products around the world.”

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About the NFTC
The National Foreign Trade Council (NFTC) is the premier business association advancing trade and tax policies that support access to the global marketplace. Founded in 1914, NFTC promotes an open, rules-based global economy on behalf of a diverse membership of U.S.-based businesses.

NFTC VP: Questions Still Remain on Implementation of OECD Pillar Two

Posted on October 6, 2023 by Veronica Berkshire

Washington D.C. – The National Foreign Trade Council (NFTC) today submitted comments to the OECD on the Administrative Guidance on the Global Anti-Base Erosion Model Rules (Pillar Two) released this July.

The comments once again stress that while the U.S. business community is supportive of the OECD’s process, it is critical for the Inclusive Framework (IF) to address the issues that still remain.

“The OECD has issued a multitude of guidance on this matter, but there are still issues that are being negotiated or otherwise yet to be resolved. At this juncture, it is going to be difficult for companies to apply Pillar Two without having a cohesive set of guidance that establishes consistent implementation and legal status across jurisdictions,” said Anne Gordon, NFTC Vice President for International Tax. “Until these concerns are addressed – many of which are enumerated in our comments – it will be hard for the U.S. business community to be fully supportive of this process.”

Download NFTC’s comments here.

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NFTC Report Shows Economic Effects of Onerous FASB Provisions

Posted on September 25, 2023October 2, 2023 by Veronica Berkshire

WASHINGTON DC – A report published by the National Foreign Trade Council (NFTC) today showed the negative economic effects of the Financial Accounting Standards Board’s (FASB) Improvements to Income Tax Disclosures on the U.S. economy.

The report indicated that companies may experience cost increases in impacted business functions as high as 62% and averaging 9.9%.

“As the report itself states, the increased costs lead to higher prices, lower demand and lower employment,” said Anne Gordon, Vice President for International Tax Policy at NFTC. “The effects also go beyond that – at a time of economic recovery, these rules may decrease corporate investment which could lead to a decrease in GDP or about $12 billion in 2022 terms. Considering these effects, we’d urge FASB not to move forward with this harmful proposal.”

Other findings in the report include:

Lower employment and wage growth;
Reduction of 27,000 full-time equivalent jobs, in year one alone;
Impacts on economy-wide wage and salary income amounting to the cost-equivalent of the loss of 609,000 average-wage jobs cumulatively by 2040;
Slower economic growth;
Decrease in investment; and
Create competitive disadvantages for companies required to report.

Download the full report here.

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NFTC Welcomes Movement on Taiwan Tax Act

Posted on September 14, 2023 by Veronica Berkshire

WASHINGTON DC – National Foreign Trade Council (NFTC) Vice President for International Tax Policy Anne Gordon issued the following statement following Senate Finance Committee passage of the U.S.-Taiwan Expedited Double Tax Relief Act:

“We were happy to see unanimous approval of the U.S.-Taiwan Expedited Double Tax Relief Act in the Senate Finance Committee and welcome their commitment to working alongside the Senate Foreign Relations Committee on continuing forward momentum on this important issue.

“Bipartisan and unanimous consent of this Act shows continued appetite on the part of the Hill to ensure American companies have a fair shot at competing in international markets, and we look forward to learning further details as the bill continues to move through the appropriate process.”

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NFTC Submits Comments for OECD Pillar One – Amount B Consultation

Posted on September 5, 2023September 6, 2023 by Veronica Berkshire

WASHINGTON DC – The National Foreign Trade Council (NFTC) last week submitted comments as part of the OECD’s public consultation on Pillar One – Amount B.

In the comments, the NFTC reiterated its support for the objectives of Amount B “namely simplifying and streamlining the pricing of marketing and distribution activities in market jurisdictions.”

“The NFTC appreciates that the OECD continues to give the business community the opportunity to comment on the Inclusive Framework process as it develops,” said Anne Gordon, NFTC Vice President for International Tax Policy. “We have been active participants in this process all along and urge the OECD to continue to take into account the business community before finalizing any aspect of this process.”

The letter outlines specific comments in the following areas:

Scoping (Section 2.2);
Services (Section 2.3.4);
Non-distribution activities (Section 2.3.5);
Pricing Matrix (Section 4.1);
Geographic Differences (Section 4.2);
Corroborative mechanism (Section 4.3);
Transitional Rules (Section 6); and
Tax Certainty (Section 7).

The full comments can be found here.

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Leading Industry Associations Express Concern with India’s ICT Import License Requirement

Posted on August 16, 2023August 16, 2023 by Veronica Berkshire

WASHINGTON DC – The National Foreign Trade Council (NFTC) and partner trade associations today sent a letter to Secretary of Commerce Gina Raimondo and United States Trade Representative (USTR) Katherine Tai urging the U.S. government to oppose a new import licensing requirement for computers and other information and communication technology (ICT) products beginning November 1, 2023, which could significantly disrupt access to India’s important ICT market.

“Import licenses harm consumers, corporations, and entire economies when they are used as a protectionist tool,” said John Pickel, NFTC’s Senior Director for International Supply Chain Policy. “This regime represents a violation of India’s international commitments, harms U.S. companies, and is a setback for U.S. investment in manufacturing that creates jobs in India.”

The letter reads, in part: “This policy – announced with no prior notice or public consultation – could significantly disrupt trade, hamper efforts to more closely integrate India into global supply chains, and harm businesses and consumers in both countries.”

The letter goes on to cite several specific concerns with the import licensing requirement, including that, among others, it:

Calls into question the reliability of India as a trade partner by violating WTO commitments;
Degrades the resiliency of supply chains and harms manufacturing in India — including investments by U.S. companies; and
Risks creating scarcity and price increases for Indian citizens, businesses, and students and imposes a considerable risk to U.S companies’ significant investment in India.

The letter was also signed by the Consumer Technology Association, the Information Technology Industry Council, the National Association of Manufacturers, the Retail Industry Leaders Association, the Semiconductor Industry Association, the Technology Trade Regulation Alliance and the United States Council for International Business.

The full letter is available here.

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TRC Welcomes Renewed Efforts to Reform Section 232

Posted on August 11, 2023August 15, 2023 by Veronica Berkshire

WASHINGTON DC – National Foreign Trade Council (NFTC) Vice President for Global Trade Policy Tiffany Smith today issued a statement on behalf of the Tariff Reform Coalition (TRC) following the introduction in the House of legislation to reform Section 232 of the Trade Expansion Act of 1962:

“The Tariff Reform Coalition welcomes the bipartisan introduction of the Congressional Trade Authority Act by Rep. Gallagher and Rep. Beyer. The last five years have demonstrated the need for fundamental reform of the authority granted to the President under Section 232. This legislation makes several important changes to Section 232, including making the Secretary of Defense responsible for the investigations into the effect of imports on U.S. national security.

“Importantly, it also creates much needed predictability for U.S. businesses by ensuring that exclusions are available to all importers of a given product, setting a maximum three-year window for 232 duties to be in place, and transferring the process of reviewing and granting exclusion requests to the International Trade Commission in conjunction with new guidelines to provide greater transparency to those seeking exclusions.

“We applaud Representatives Gallagher’s and Beyer’s leadership in spearheading this commonsense update to Section 232 of the Trade Expansion Act of 1962 and we urge Congress to pass this important legislation.”

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About the NFTC
The National Foreign Trade Council (NFTC) is the premier business association advancing trade and tax policies that support access to the global marketplace. Founded in 1914, NFTC promotes an open, rules-based global economy on behalf of a diverse membership of U.S.-based businesses.

NFTC Statement on Executive Order on Outbound Investment

Posted on August 9, 2023 by Veronica Berkshire

WASHINGTON DC – NFTC Vice President for National Security Policy Jeannette Chu released the statement following the publication by President Biden of an Executive Order on outbound investment:

“This Executive Order on outbound investment restrictions comes after many months of anticipation, which reflects the complicated issues at play. Protecting our national security interests, including competitiveness, and preventing access to sensitive and militarily-relevant technologies and products requires thoughtful policy approaches across agencies.

“We look forward to an orderly and transparent rulemaking process that will build on existing regulations and include robust consultation across stakeholders. As an association representing American companies across all sectors of the U.S. economy, NFTC stands ready to help inform this process.”

Jeannette Chu is available for media inquiries on this issue. She can be reached by contacting Veronica Berkshire (vberkshire@nftc.org).

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Canada DST Proposal is Shortsighted; Will Harm International Tax Negotiations

Posted on August 4, 2023 by Veronica Berkshire

WASHINGTON DC – National Foreign Trade Council (NFTC) Vice President for International Tax Policy Anne Gordon today issued a statement following the publication of Canada’s proposed Digital Services Tax (DST):

“We are acutely disappointed with Canada’s decision today to move forward with their plans to impose a DST and their refusal to join the close-to-unanimous Pillar One DST moratorium announced by the OECD Inclusive Framework (IF) members last month.

“The text published today shows that Canada’s DST is clearly discriminatory towards U.S. companies and will harm international efforts to come to a global consensus on issues of taxation in the digital economy. The retroactive application of the measure is also extremely troubling.

“This move is shortsighted. By endangering the international process, it also increases the likelihood that other countries will implement their own unilateral measures, therefore creating a web of discriminatory, country-specific DSTs that will hinder the ability of our companies to do business abroad.

“We urge Canada to reconsider implementation of the DST and to continue actively engaging on Pillar One before moving forward with any unilateral measures.”

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