To: Jackson Cox (Chairman) and APCAC Delegates From: Loren Monroe, Jonathan Mantz, William Crozer, Noelle Carter & Olivia Earenfight Subject: APCAC Doorknock Meetings Recap Date: July 14, 2016 ______
Jackson and 2017 APCAC Doorknock Delegates,
Please find a recap of the 2017 APCAC Doorknock below. As in year’s past, this covers issues discussed during meetings and keen insights gained as well as any appropriate follow-up items. The broad takeaway from this year’s Doorknock is that while Congress remains engaged on APCAC priority issues, including trade expansion and tax reform, there is still a significant amount of uncertainty regarding the new administration’s priorities, which continues to complicate the policy environment on Capitol Hill. That being said, it is clear that the administration is dedicated to reforming the trade agenda around the concept of “fair trade” (i.e. deficit reduction and enforcement) and this is finding acceptance, even if tacitly, on the Hill. Further, the administration promises to expend significant political capital on tax reform, which will find broad support in the House and Senate, but key differences remain around overarching priorities and the scope and scale of reform.
It will be important to remain engaged on APCAC’s priority issues of - trade, tax reform, and travel (APEC Business Travel Card). Trade will remain a front-and-center issue with the administration moving ahead with NAFTA renegotiation and identifying other trade agreements for review. Pending the outcome of the healthcare debate, tax reform discussions are also right around the corner. As we heard consistently in our meetings, APCAC is one of the few organizations engaging on these issues from the perspective of American business men and women abroad and continued engagement on these issues is extremely important. Finally, ABTC reauthorization continues to move ahead with anticipated passage ahead of the APEC Summit in Vietnam in November.
Monday, June 19th Meetings
9:00 – 9:45am Meeting
Donald Trump for President Meeting With: Corey Lewandowski, Former Chief Political Adviser and Campaign Manager to Trump for President BGR Staff: Loren Monroe, William Crozer and Noelle Carter
Notes: Meeting focused on providing context and background for President Trump and the administration. Specific discussion of key policy areas including the economy and trade.
• Lewandowski opened by stating that the overarching priority for this administration is job creation. This feeds into overall narrative of America “winning.” Trade plays an integral role in this process and the perception is that America is being out negotiated. Lewandowski stated that the focus of this administration is on addressing trade deficits, even with close allies, with the belief that closing the gap will boost the economy and job creation. • Lewandowski homed in on the administration’s trade policy classifying it as “fair trade” – a slogan used often on the campaign trail. He defined fair trade as the ability to take domestic products and sell them overseas at a fair and equitable rate. This allows U.S. companies to be competitive around the world. Lewandowski did
state that will the preference for this administration is on bilateral agreements – with the belief that direct negotiations increase the country’s negotiating power – there is still opportunity for broader, multilateral agreements. Just have to show why multilateral is a better approach for boosting the economy and job creation, etc. • On tax reform, Lewandowski specifically mentioned having reviewing APCAC’s policy materials and the need for individual reform. Need “friendly, fair, and equitable” tax structure. It’s a “value proposition,” he stated.
10:00am – 10:30am Meeting
BGR Group Meeting With: Jeff Birnbaum, President, BGR Public Relations, Former Political Correspondent –Time Magazine, Former White House Reporter –Wall Street Journal, Former Political Analyst –Fox News BGR Staff: Loren Monroe, William Crozer and Noelle Carter
Notes: Purpose of the meeting was to provide context and insight into the public relations world in Washington and its impact on public policy. Discussion focused primarily on the tax reform debate, the stakeholders involved, and the evolving process.
• Jeff set the table for the discussion by noting that Washington, D.C. is a “process town” – the point being that policymaking oftentimes follows a predictable path. Jeff noted that in Washington, “nothing is ever as bad or as good as it appears at the moment” despite what the media narrative is. • Looking at the current administration, Jeff highlighted that every new president is similar in many respects, including with the real or perceived appearance of disorganization (one charge that has been levied against President Trump and his team). “Nobody is prepared with what a new President finds,” Jeff stated. • Jeff walked through some of the nuances of tax reform stating emphatically that tax reform is difficult because “there are always winners and losers.” This dynamic makes negotiations extremely complicated and compromise difficult to reach. This is currently playing out now on Capitol Hill.
______11:00am – 11:45am Meeting
Office of the Vice President Meeting With: Mark Calabria (Domestic Policy Council, Office of the Vice President) and Landon Loomis (Special Advisor for Global Economics & Western Hemisphere) BGR Staff: Loren Monroe, William Crozer, Jonathan Mantz and Noelle Carter
Follow-Up: Mark and Landon suggested that APCAC reengage on issues in 4-5 months noting that many agencies and departments are still staffing out.
Notes: Discussion focused on economic policy broadly with specific engagement on trade and tax reform. Meeting was insightful because the Vice-President and his team are playing an important role in developing and advancing the administration’s agenda.
• Mark opened the meeting by complimenting and thanking APCAC specific AMCHAMS for hosting VP during recent Asia trip. He noted that there was “strong dialogue” on issues impacting American businesses and workers in the region. For example, Hong Kong raised financial services competition and U.S. doing more to help (or at least not hurt) U.S. companies. • Mark noted that there are two factors driving economic policy in this administration – those being productivity growth and labor force participation. The goal of the administration is to get the labor force participation rate up two points, which equals about 3 million jobs. Mark noted that tax reform plays a critical role here – the overriding goal is how to increase capital investment in the country, which will inherently boost the economy and create more jobs. Mark touched on specific policy recommendations, including territoriality and repatriation. He also mentioned FATCA and the concerns that the compliance costs far
outweigh any amount of revenue raised. • On trade, Mark said that the administration is committed to increasing trade but has a concern about perceived imbalances (i.e. deficits). Like Lewandowski, he stated that there is a stronger emphasis on bilateral agreements but that this did not mean multilateral arrangements were necessarily off of the table. The strategy is focused on negotiating power. • Landon Loomis echoed many of Mark’s comments. He said that trade policy is focused on growing global trade while reducing deficits, primarily via negotiating better agreements and enforcement (i.e. fair trade). Speaking on the administration’s proposed budget (and the steep, across-the-board cuts), he noted that it was a clear message to allies in the Asia-Pacific that they need to “step up.”
______12:00 – 1:00pm Meeting
The Wall Street Journal (WSJ) Meeting With: Lunch and Remarks by William Mauldin, International Economics and Trade Reporter—Wall Street Journal BGR Staff: Jonathan Mantz, William Crozer and Noelle Carter
Notes: Discussion was focused primarily on trade policy and dynamics in that regard within the administration and on Capitol Hill. You can follow Mauldin’s reporting in the WSJ here or on twitter here.
• Looking at the Trans-Pacific Partnership (TPP), Mauldin stated that the agreement was very much off the table in the United States. He highlighted an interesting dynamic though of the administration perhaps using portions of the TPP in future trade negotiations (ISDS, rules of origin, etc.), including with the pending renegotiation of NAFTA and perhaps KORUS. Mauldin did note that China and its growing influence in the region is a “big issue” – even more so with TPP sidelined. On one hand, the U.S. is trying to check China’s growing influence. On the other, the U.S. needs China’s help with North Korea. • Speaking more broadly on the administration’s trade policies, Mauldin noted that there is a divide in the administration, as evidenced by the ongoing debate surrounding the ongoing Sec. 232 steel dumping investigation. That being said, Mauldin stated that he expected to see a significant ramp-up in trade enforcement activities by Commerce, Treasury, and USTR. On Congress, Mauldin noted that there was a “policy mismatch” with the administration on trade. In the 2016 elections, he highlighted, there was a clear divide over trade across states (take, for example, the Rust Belt (MI, PA, IN, WI) that Trump performed well in due in large part to his message on the economy and trade. ______2:00 – 2:45pm Meeting
U.S. Department of Treasury Meeting With: Ben Cushman (Deputy Director of Southeast Asia), Doug Poms (Deputy International Tax Counsel), and Robert Kaproth (Deputy Assistant Secretary for Asia) BGR Staff: William Crozer and Noelle Carter
Follow-Up: Metrics and data illustrating the impact of current U.S. system of taxation on Americans living and working abroad. Need to be able to show materially significant problem to influence policy.
Notes: Meeting was tailored more to a discussion with Treasury officials interested in hearing from APCAC delegates about priority issues ranging from tax reform to FATCA. Much of the conversation was geared towards increasing U.S. competitiveness in the Asia-Pacific. Ben, Doug and Robert did provide background and context but all noted that the Department has few areas with concrete policy objectives (many key political positions remain unfilled).
• Doug noted that the administration and Treasury Department remain engaged in the Asia-Pacific. He specifically mentioned the Asia-Pacific Financial Forum (APFF), which convened in Seoul, South Korea in April. The APFF is a platform for public-private collaboration to accelerate the development of robust and integrated
financial markets in the APEC region. Specific mention was also given to the Asian Infrastructure Bank, which the U.S. is not a participant in. Ben noted that one complicating issue is that the U.S. is in arrears with other development banks and would have to meet those obligations if it decided to join the Asian Infrastructure Bank (an unlikely scenario at this point). • Issues were raised about U.S. sanctions on Myanmar and the role of the U.S. Treasury vis-à-vis FinCEN. Ben Cushman noted that this was an ongoing consideration and one that Treasury would look at. ______3:00 – 3:45pm Meeting
U. S. Department of Agriculture (USDA) Meeting With: Jason Hafemeister (Trade Policy Coordinator at the Foreign Agriculture Service) BGR Staff: Loren Monroe, William Crozer and Noelle Carter
Notes: Discussion was focused primarily on trade policy. Under Secretary Sonny Perdue, who is the former Governor of Georgia, the Department has been a vocal advocate for protecting and expanding free trade. Note that in May, the Department announced the creation of a Undersecretary for Trade – a significant step that illustrates USDA’s commitment to and role in ongoing trade negotiations.
• Jason reaffirmed the importance of free trade to U.S. agriculture noting that 20 percent of gross farm income comes from exports (1/3rd acres in the U.S. planed for exports). He highlighted that agricultural interests are important in the trade debate noting that 70 percent of “yes” votes for Trade Promotion Authority (TPA) came from heavy agricultural districts (see The House Passed TPA, Again). • Addressing trade agreements, Jason expressed concern about NAFTA renegotiation noting that it has been “good” for agriculture. Turning to the TPP, he said that it would have been better than no deal but noted that there were many issues. Looking ahead, Jason stated that the administration is interested in pursuing bilateral agreements. He said that Japan, Vietnam, Malaysia, New Zealand and China posed the biggest opportunities for new agreements. • Finally, addressed concerns about foreign investment in the United States in relation to agricultural interests and said that the CFIUS (Committee on Foreign Investment in the United States) review is being expanded to cover agricultural technology (see Grassley Wants Ag Secretary Permanently on CFIUS Committee).
______4:30 – 5:00pm Meeting
U.S. Department of State Meeting With: Ambassador Joseph Yun (Special Representative for North Korea Policy, Deputy Assistant Secretary for Korea and Japan in the Bureau of East Asian and Pacific Affairs, US Department of State BGR Staff: Loren Monroe, Jonathan Mantz, William Crozer and Noelle Carter
Notes: Meeting was designed to provide APCAC with a geopolitical/strategic overview of the Asia-Pacific and administration policy towards the region. While Ambassador Yun set the table for the evolving situation in North Korea, the meeting was cut short after the Ambassador received word of Otto Warmbier’s death.
______5:00 – 5:45pm Meeting
U.S. Trade Representative Meeting With: Barbara Weisel (Assistant U.S. Trade Representative for Southeast Asia and the Pacific) BGR Staff: Loren Monroe, Jonathan Mantz, and Noelle Carter
Notes: APCAC delegates very familiar with Barbara Weisel and have worked closely with her on a variety of issues. Discussion was broad and designed to provide an update on emerging trade policy in the administration and to provide USTR with on-the-ground feedback.
• Barbara stated that USTR was closely watching unfolding events in the region, including RCEP and TPP 11. She
noted that there has been a significant shift in U.S. policy towards “fair trade” but that officials were still working out what exactly that encompassed (note that USTR Lighthizer confirmed on May 11). • Barbara focused in on NAFTA stating that it is still unclear what renegotiation will encompass. She noted that Mexico wants negotiations completed before the end of the year because of upcoming elections. This will be difficult because negotiations cannot begin until August (per 90-day notice window for U.S.).
Tuesday, June 20th Meetings
9:00 – 10:30am Meeting
Third Way Meeting With: Gabe Horwitz (Vice President, Economic Program) BGR Staff: William Crozer and Noelle Carter
Follow-Up: Remain engaged with Third Way on priority issues. Organization is always looking for interesting policies and perspectives. Can follow Gabe on twitter here.
Notes: Third Way is a Washington, D.C.-based public policy think tank founded in 2005. The think tank develops policy ideas, conducts public opinion research and hosts issue briefings. The organization has four policy divisions: Economics, National Security, Clean Energy, and Social Policy & Politics. Note that the organization has looked at the trade issue extensively and was supportive of the Trans-Pacific Partnership (TPP).
• Gabe provided an overview of Third Way noting that the organization is focused on four primary policy areas, including clean energy, national security, social policy, and the economy. The goal of the organization is to provide “short and concise” explanations for these policy areas that everyone can understand and digest. • On trade, Gabe said that Third Way scholars are trying to refine messaging around trade and make it work. Long term, the organization is looking at surrounding issues like worker displacement, etc. This will make trade more palatable to members and the public alike by addressing ancillary issues.
______11:00am – 12:30pm Meeting
Peterson Institute Meeting With: Jeff Schott (Senior Fellow) and Cathleen Cimino-Isaacs (Research Associate) BGR Staff: Loren Monroe, Jonathan Mantz, William Crozer and Noelle Carter
Notes: In what has become a staple of the APCAC Doorknock, the group met with scholars from the Peterson Institute to discuss trade policy. Peterson was heavily engaged in the TPP debate and provided much of the intellectual and factual basis in support of the agreement.
• Jeff provided an overview of the political environment and its impact on trade policy. On trade and the economy, he made several points. First, he said that the administration is not going to reach 3 percent economic growth without additional boosts to productivity, which the TPP would have provided. Second, he said another emerging issue is the growth in the U.S. current account deficit (see U.S. Current Account Deficit Expands to $116.8 Billion). This is a problem because administration almost solely focused on bilateral deficits. Note that the current account deficit is the most complete measure of trade because it includes investment flows in addition to trade in merchandise and service. Third, Jeff stated that he believes the administration will “fall flat” in its bilateral trade approach. Japan, for example, is unlikely to sincerely come to the bargaining table on a bilateral deal. • On TPP 11 and RCEP, Jeff stated that there are big questions about what model the agreements will eventually take. He said that while the overall numbers and corresponding benefits contract significantly without the
U.S.’s participation, some value remains. At the end of the day, Jeff surmised, it is all about the amount of liberalization that will occur. • On tax reform and its relationship with trade, Jeff stated that he does not see how it can be made compliant with WTO rules. Estimated that there was a 10 percent chance it was included in final tax bill.
1:00 – 2:30pm Meeting
Center for Strategic & International Studies (CSIS) Meeting With: Murray Hiebert (Senior Adviser and Deputy Director, Southeast Asia Program) and Scott Miller (Senior Adviser and Scholl Chair in International Business) BGR Staff: Loren Monroe, Jonathan Mantz, William Crozer and Noelle Carter
Notes: Substantive discussion on U.S. foreign policy in the Asia Pacific. Scott Miller was a new addition to the discussion – he focused primarily on trade policy. He recommended that APCAC visit CSIS’s new project – Reconnecting Asia. The project maps new linkages—roads, railways, and other infrastructure—that are reshaping economic and geopolitical realities across Asia.
• Scott Miller covered the trade discussion. Speaking on the “signal to noise ratio,” Miller stated that it was still unclear what Trump administration wants to do with international engagement as evidenced by the split in WH between the Cohn/Mnuchin and Bannon/Navarro camps. Miller also opined that the slow pace of filling the 600 or so top-level, politically appointed jobs was taking its toll on policy formulation and implementation. • Looking at the administration’s singular focus on reducing trade deficits via bilateral negotiations, Miller stated that the actual focus should be on economic growth. He said that there was a significant policy conflict with Congress in this regard noting that while there are a lot of areas of mutual agreement, trade policy is simply not one of them. Miller noted that there is a significant limiting factor on President Trump’s trade agenda – that being political capital. NAFTA renegotiation, Miller opined, “opened Pandora’s box” and will “consume a lot of time,” he stated. • On U.S. policy in Southeast Asia, Murray stated that there is no “ascertainable strategy” post-TPP. However, what is clear is that beginning with Defense Secretary James Mattis and Secretary of State Rex Tillerson trips to the region, there is clearly a shift in priorities. Miller noted that the administration does intend to target trade deficits with several countries in the region, including Malaysia and Indonesia.
2:30 – 3:00pm Meeting
Carola McGiffert, Managing Director (BGR), Former CEO of the US-China Strong Foundation Meeting With: Carola McGiffert BGR Staff: Loren Monroe, Jonathan Mantz, William Crozer and Noelle Carter
Notes: Carola joined the group at the Chamber to discuss her previous work in the Asia-Pacific and with coalition building. Before joining BGR Group, McGiffert was CEO of the U.S.-China Strong Foundation, a non-profit she established in 2012 to strengthen U.S. competitiveness and collaboration with China. McGiffert provided the group with an overview of her work and gave keen insights into evolving dynamics in China and throughout Asia. She highlighted the importance of the work that APCAC and similarly situated groups are doing as they are the real eyes and ears in the region – even more important now at a time that the U.S. appears to be retrenching. She encouraged the group to remain active on the issues and continue to build a coalition around key priorities.
3:00 – 4:15pm Meeting
American Enterprise Institute Meeting With: Alex Brill (Research Fellow – Tax) BGR Staff: Loren Monroe, Jonathan Mantz, William Crozer and Noelle Carter
Notes: 2017 marked a reengagement with the American Enterprise Institute (AEI). APCAC had originally met with AEI trade scholars during the 2014 Doorknock. Alex Brill focused on tax policy. Before joining AEI, Brill served as the policy director and chief economist of the House Ways & Means Committee. Discussion was engaging, and Alex provided a candid assessment of the issues.
• Brill made several points on tax policy and the ongoing tax reform debate that included: o Only about 10 percent of U.S. revenues raised come via the corporate income tax. o Regarding the BAT tax, it is unclear how important the debate actually is. More unclear is BAT even politically practicable given widespread opposition, particularly in the Senate. o The reason that tax reform only happens once in a generation is because it boils down to winners vs. losers (echoing Jeff Birnbaum of BGR Group earlier statements). Tax reform implicitly will have an adverse impact on certain groups, and it is this dynamic that makes it difficult to negotiate and conclude. o On territoriality, Brill said that the concept was pretty much accepted on the corporate side. However, on the individual side, he said that there was a significant messaging problem because the perception is that “it is only for rich people.” He said that one line of thinking on the Hill is that territoriality for individuals is like a “unlimited Sec. 911 cap.” Moreover, the problem is that American expats do not have a natural member in Congress, and they do not employ anyone in the United States – these are all problems surrounding the discussion to include territoriality for individuals as well as corporations. Brill did suggest to hone in on the policy argument – that being how can lawmakers move to territorial on one side and not the other? They need to level the playing field with competitors across the board and make the U.S. more competitive globally. • Discussion also focused on specific aspects of tax reform/tax policy such as the process. He noted that the goal is the use reconciliation, which does not require 60 vote threshold in the Senate provided the reconciliation bill does not increase the deficit in any fiscal year after the window of the reconciliation bill (typically 10 years). Brill highlighted how this process is fraught with problems, particularly in the way of cutting taxes but finding appropriate pay-fors to offset deficit increases.
Wednesday, June 21st Meetings
8:30 – 10:00am Meeting
Heritage Foundation Meeting With: Walter Lohman (Director, Asian Studies Center), Bryan Riley (Jay Van Andel Senior Policy Analyst in Trade Policy), Dean Cheng (Senior Research Fellow, Asian Studies Center), and Riley Walters (Research Associate, Douglas and Sarah Allison Center for Foreign Policy) BGR Staff: William Crozer and Olivia Earenfight
Notes: A staple meeting of APCAC Doorknocks, APCAC delegates convened for a morning breakfast and discussion ahead of Capitol Hill meetings. This year’s meeting took on newfound importance given Heritage’s influence in the new administration (see Meet Donald Trump’s Think Tank). With many key positions left unfilled in the new administration, Heritage continues to play a key role in developing policy solutions for the administration. In addition, many Heritage scholars have joined the administration since President Trump took office.
• Discussion began with an overview of the new administration. One notable observation is that there has been a shift in power compared to previous administrations. Specifically, cabinet officials have greater say in policy formulation, which has allowed them to specialize in individual areas (some see this as a source of frustration with multiple silos of power as opposed to one clear channel of authority). • On the Asia-Pacific, it was observed that the administration does not seem to have an “innate view” of or
“concrete policy” for the region. On trade, it is clear that the administration’s agenda is still evolving but appears to be tacking an “anti-trade route.” The focus is on tackling trade deficits via strengthening enforcement efforts and/or renegotiating existing agreements. The budget was another area of focus and the potential impact on the State Department. Realistically, State will take some level of cuts around 5-10 percent. • On tax reform, the point was made that just because House Speaker Paul Ryan (R-WI) and Ways & Means Chairman Kevin Brady (R-TX) support the border adjustment tax (BAT) does not mean they are shifting their stance on trade. In fact, they both remain very open to trade liberalization. What is clear is that there is a disconnect between the administration and Congress on trade policy that has yet to be ironed out. • Other topics of discussion included CFIUS, infrastructure, and the Ex-Im Bank (noting that Trump just made two nominations, one of which – Scott Garrett – has historically been opposed to the bank).
10:30 – 11:00am Meeting
Foreign Relations Committee (Majority/Minority Staff) Meeting With: Scott Richardson (Policy Analyst and Counsel – Majority Staff), Emily Manning (Policy Assistant – Majority Staff), and Michael Schiffer (Senior Advisor and Counsel – Minority Staff) BGR Staff: Loren Monroe, Jonathan Mantz, William Crozer, Noelle Carter and Olivia Earenfight
Notes: The group had been scheduled to meet with Carolyn Leddy (Senior Professional Staff Member) and Andy Olson (Senior Advisor for International Economics and Trade) but there was a last-minute scheduling conflict. Discussion was robust with APCAC delegates providing keen insights and feedback on priority issues.
• Scott began by providing an overview of trade policy on the committee noting that there had been a shift towards protecting U.S. sovereignty (think WTO) and trade enforcement. He noted specifically mentioned the Trade Facilitation and Trade Enforcement Act of 2015, which creates an interagency coordinating committee designed to facilitate enforcement measures. Scott did highlight that there is still a strong sense on Capitol Hill that multilateral agreements are good. • Emily Manning discussed pending ambassadorial nominations (as of July 13, Trump has nominated 25 out of 77 ambassadors). Michael Schiffer encouraged APCAC to engage adminsitration about importance of having these positions filled – can illustrate the costs and impact on businesses.
11:00 – 11:30am Meeting
House Subcommittee on Trade Meeting With: Angela Ellard (Staff Director) BGR Staff: Loren Monroe, Jonathan Mantz, William Crozer, Noelle Carter and Olivia Earenfight
Notes: Discussion was focused on trade policy and the evolving agenda. Angela highlighted the importance of APCAC engagement noting that members need to hear about problems and successes.
• On NAFTA, she noted that renegotiation was unique in that it would be the first opportunity to apply TPP standards on a host of issues (digital copyright, labor and environment, market access) to old agreements. • On the administration’s overarching focus on the trade deficit, Angela noted that Trade Subcommittee Chairman Dave Reichert (R_WA), alongside House Ways & Means Chairman Kevin Brady (R-TX), are looking at the issue and taking a more nuanced approach in examining causes, etc. Angela also raised the issue of trade enforcement noting that was an emerging priority both on the Hill and within the administration and highlighted ongoing Sec. 232 investigations. • Angela indicated that there is still a strong base of support for multilateral agreements on Capitol Hill. That being said, she cautioned, the administration is taking a different course in preferring to negotiate bilateral agreements along a common theme. ______11:30am – 12:00pm Meeting
Rep. George Holding, (R-NC), Ways & Means Committee, Trade Subcommittee Meeting With: Matt Stross (Legislative Assistant) BGR Staff: Loren Monroe, Jonathan Mantz, William Crozer, Noelle Carter and Olivia Earenfight
Follow-Up: Remain engaged with office as tax debate unfolds. Will need to provide guidance on particular language.
Notes: APCAC was scheduled to meet with Rep. Holding and present him with the APCAC award; however, the House floor debate schedule interfered. The group had a lengthy discussion with Matt Stross on priority issues with a focus on tax reform. Rep. Holding has taken a keen interest in the issue, particularly with adopting a system of territorial taxation for individuals. Stross was appreciative of APCAC’s efforts and noted that there needs to be harmony, where appropriate, between the individual and corporate systems – it is a matter of foreign competitiveness.
12:00 – 12:30pm Meeting
White House Legislative Affairs Meeting With: Joseph Lai (Special Assistant to the President and Senate Special Assistant) BGR Staff: Loren Monroe, Jonathan Mantz, William Crozer, Noelle Carter and Olivia Earenfight
Notes: Joe Lai joined the group for a lunch discussion. The opportunity was unique and insightful because Joe worked in the White House’s office of legislative affairs, which is responsible for pushing the administration’s agenda on Capitol Hill.
• On trade, Joe stated that the President understands that this is an important issue to voters that elected him (noting that President Trump ran on a “fair trade” agenda). Joe walked through some dynamics in the Senate, including the balance between industrial state and agricultural state Senators, with the former preferring the President’s approach on enforcement, etc. • On tax reform, Joe noted that the discussions are still very much ongoing and Congressional and administration negotiators are considering all viewpoints (see GOP Tax Overhaul’s Fate Rests on “Big Six” Talks).
12:45-1:00pm Meeting
Rep. Joaquin Castro, (D-TX), Foreign Affairs Committee Meeting With: Member BGR Staff: Loren Monroe, Jonathan Mantz, William Crozer, Noelle Carter and Olivia Earenfight
Follow-Up: ABTC reauthorization and co-sponsorship (support of ASEAN Caucus)
Notes: Rep. Castro is a rising star in the Democratic Party. He briefly considered a U.S. Senate run against incumbent Republican Senator Ted Cruz of Texas but has since opted to stay in the House. He has taken a particular interest in foreign affairs and trade matters during his tenure in the House and is a leader in both the U.S. – Japan Caucus and the ASEAN Caucus.
• The Congressman opened his remarks with a focus on the ASEAN Caucus and his commitment to continuing to work on having Congress engage in the Asia-Pacific. He noted that the geopolitical landscape in the region is very much in flux and highlighted the evolving threat of North Korea. • Turning to trade, the Congressman noted that his colleagues on the Hill are largely in favor of expanding free trade but there is widespread concern about the administration’s policy. He stated that there is confusion about “who speaks for the President” on trade and related matters (noting ongoing conflict in White House on trade policy). The Congressman turned to NAFTA stating that the success or failure of renegotiation will dictate a lot going forward (as we heard in other meetings, the Congressman also noted that many of the standards
negotiated in the TPP are likely to be employed in the renegotiation process). • The Congressman expressed his support for ABTC reauthorization.
1:00 – 1:30pm Meeting
Rep. Ted Yoho (R-FL), Committee on Foreign Affairs - Chairman, Asia & Pacific Subcommittee Meeting With: Member BGR Staff: Loren Monroe, Jonathan Mantz, William Crozer, Noelle Carter and Olivia Earenfight
Follow-Up: CO-DEL in August to Asia-Pacific. Co-sponsorship of ABTC reauthorization legislation.
Notes: The Congressman recently took the helm of the Asia & Pacific Subcommittee on the House Foreign Affairs Committee. With a background and interest in agriculture, he is a proponent of continued engagement in the Asia- Pacific and supports expanding trade relationships.
• The Congressman opened the meeting with prepared remarks covering his work in Congress. He discussed his new role as Chairman of the Asia & Pacific Subcommittee noting that he anticipated a significant amount of activity given the heightened focus on trade, etc. He highlighted his co-sponsorship of two resolutions urging increased trade with Japan and Taiwan. The Congressman stated that the goal of these resolutions is to let countries in the region know that the U.S. is still committed engagement. • Turning to geopolitics, Congressman Yoho noted that there are over 75 conflict zones around the world, including several in the Asia-Pacific. The Congressman stated that U.S. leadership is needed now more than ever, and that policymakers must look outward, not inward. “80 percent of success is showing up,” he stated.
1:30 – 2:00pm Meeting
Sen. Mazie Hirono (D-HI), Armed Services Committee Meeting With: Member BGR Staff: Loren Monroe, Jonathan Mantz, William Crozer, Noelle Carter and Olivia Earenfight
Follow-Up: Continued engagement on ABTC reauthorization legislation. Remain engaged on other priority issues impacting Americans living and working in the region.
Notes: Senator Hirono has led legislative efforts in the Senate to reauthorize the ABTC (S. 504). In recognition of her leadership, APCAC presented the Senator with its annual award.
• Senator Hirono stated that one of her overarching priorities is promoting international tourism and travel (note that Hawaii’s economy is almost singularly dependent on tourism). The Senator noted that the ABTC card was one key component to this agenda. • Turning to trade, the Senator stated that the TPP was representative of the U.S.’s commitment to expand its presence vis-à-vis relationships in the Asia-Pacific. Discussing her opposition to the agreement, the Senator said that she did not believe the agreement went far enough to create a level playing field for American workers. She did express recognition that the U.S.’s failure to push through the agreement leaves a power vacuum in the region.
______2:00 – 2:15pm Meeting
Sen. Cory Gardner (R-CO), Committee on Foreign Affairs – Chairman, East Asia & the Pacific Subcommittee Meeting With: Member BGR Staff: Loren Monroe, Jonathan Mantz, William Crozer, Noelle Carter and Olivia Earenfight
Notes: Chairing the Foreign Affairs Committee’s East Asia & the Pacific Subcommittee, Gardner is seen as one of the leading voices in the Senate on policy in the Asia-Pacific. He is always willing to meet with APCAC during the Doorknock, and his staff is very engaged and supportive of APCAC priority issues. Due to floor votes in the Senate, he was not able to spend a significant amount of time with the group this year but did stop by to give brief remarks. APCAC presented him with the organization’s annual award in recognition of his strong support (note that the Senator is a co-sponsor of ABTC reauthorization legislation).
2:30 - 3:00pm Meetings
Rep. Claudia Tenney (R-NY) Meeting With: Nick Stewart (Chief of Staff) BGR Staff: Brent Delmonte
Follow-Up: Remain engaged on priority issues.
Notes: A freshman, Tenney is a self-described “populist” in the model of President Donald Trump. She has said that her overarching priority in Congress is to promote job growth – she is a small business owner.
• On tax reform, the group raised the need to harmonize the treatment of individuals living and working abroad with corporations. Territoriality must be included on the individual side with comprehensive reform. Nick inquired about which members are leading on this issue (noted Congressman George Holding). • On trade, the Congresswoman opposed the TPP on the campaign trail arguing that it cost the country manufacturing jobs. Nick did state that the Congresswoman supports expanded trade engagement with a preference for bilaterals. • Nick noted that the Congresswoman is interested in taking a CO-DEL to Taiwan.
Rep. Dina Titus (D-NV) Meeting With: Staff BGR Staff: Jonathan Mantz
Follow-Up: ABTC reauthorization.
Notes: Discussion was broad focusing on priority issues. Particular emphasis was placed on trade and travel because of the Congresswoman’s interest and involvement on these issues (represents a district that incorporates portions of Las Vegas, NV). The group asked for the Congresswoman’s support of ABTC reauthorization, which staff expressed interest in (casino and tourism industry being one of the chief industries in Nevada). Staff expressed general concern with the direction of the Trump administration, and its negative impact on the economy and our competitiveness.
Rep. Stacey Plaskett (D-VI) Meeting With: Member BGR Staff: Carola McGiffert
Notes: The APCAC group went through their 3 T’s Rep. Plaskett is a seasoned Washington veteran and as the representative from the Virgin Islands listened to and knowledgeably discussed trade issues. The APCAC group went through their 3 T’s and Rep. Plaskett expressed support for expanding free trade markets.
Rep. Brian Mast (R-FL) Meeting With: Staff BGR Staff: William Crozer
Follow-Up: Remain engaged on priority issues.
Notes: Meeting was scheduled with the Congressman, but he was unavailable because of floor votes. Since the Congressman is a freshman, the discussion was broad walking through APCAC priority issues, including trade, tax reform, and travel. Staff was supportive and appreciative of APCAC’s leadership on the issues.
Rep. Vicente Gonzalez (D-TX) Meeting With: Paulina Carrillo (Staffer) BGR Staff: Chris Simeone
Follow-Up: ABTC reauthorization.
Notes: Gonzalez is a freshman member, so the discussion was broad focusing on the priority issues of trade, taxes, and travel. The group walked through each issue highlighting their cumulative importance not only to American interests abroad but also the domestic economy. Paulina noted that the Congressman is supportive of expanding trade relationships around the world. Representing a district that lies on the U.S.-Mexico border, trade (NAFTA) is integral to workers and the economy. The group also asked for the Congressman’s support of ABTC reauthorization, which Paulina seemed amicable to.
______3:00 - 3:30pm Meetings
Rep. Jamie Raskin (D-MD) Meeting With: Julie Tagen (Chief of Staff) BGR Staff: Brent Delmonte
Follow up: Julie specifically inquired about scoring of residency-based taxation.
Notes: Raskin is a freshman elected in 2016 so the discussion was broad focusing on topline priority issues of trade, tax reform, and travel. This was perhaps one of the more challenging meetings of the day because Raskin is one of the more liberal members of Congress and thus cautious of trade agreements, etc. Julie also highlighted that the Congressman is staunchly opposed to the President’s agenda and noted that the administration has not taken strides to work with Democratic members of Congress.
Rep. Dwight Evans (D-PA) Meeting With: Member BGR Staff: Jonathan Mantz
Notes: APCAC has not previously engaged the Congressman, so the discussion was broad introducing him to priority issues, including trade, tax reform, and travel (ABTC). Representing an urban district in Philadelphia, the Congressman had a strong grasp of the trade issue (serves on the House Agriculture Committee) and expressed support for opening markets abroad to U.S. produce and goods. The Congressman did say that one key for him is balancing good trade policy with maintaining strong job growth and wages.
Rep. Paul Mitchell (R-MI) Meeting With: Member BGR Staff: Carola McGiffert
Follow-Up: ABTC reauthorization
Notes: Rep. Mitchell is a freshman and new to APCAC. The Congressman listened carefully as APCAC walked through priority issues and his staff took good notes. He expressed support for the APEC visa issue.
Rep. Dave Reichert (R-WA) Meeting With: Natalie Kamphaus (Legislative Assistant – Trade)
BGR Staff: William Crozer
Notes: Congressman Reichert chairs the House Ways & Means Committee’s Trade Subcommittee. He and his staff are a staple of APCAC Doorknocks. While the group was scheduled to meet with the Congressman, he was unable to join due to floor votes. It was noted that the APCAC annual award given to the Congressman was on display in his office.
• Given the Congressman and his staff’s familiarity with the issues, the conversation was broad. Particular focus was given to trade policy with the group raising concern in the region about U.S. commitment. The group highlighted that some countries, like Myanmar, are starting to pivot towards China. Natalie noted that the office has heard similar concerns not just from within the Asia-Pacific but also from around the world. • The Congressman is an original sponsor of ABTC reauthorization legislation. The group thanked Natalie for the Congressman and her own leadership on the issue. • Natalie highlighted that the Congressman and Rick Larsen (D-WA) are working to “revitalize” the APEC Caucus noting that now was a critical time given uncertainty in the region with the U.S.’s withdrawal from the TPP.
Rep. Lynn Jenkins (R-KS) Meeting With: Adam York, Senior Legislative Assistant BGR Staff: Ryan Long
Follow up: Information on ASEAN Caucus.
Notes: Jenkins is a member of the House Ways & Means Subcommittee on Trade. Serving in his second term, Jenkins is not seeking reelection in 2018. The discussion was broad and designed to put APCAC priority issues on the Congressman’s radar as they emerge during the course of this Congress. Adam noted APCAC’s positions and appreciated the feedback.
______3:30 - 4:00pm Meetings
Rep. Tom Emmer (R-MN) Meeting With: Member BGR Staff: Brent Delmonte
Follow up: Rep. Emmer said: “As you see people from Minnesota who are having banking troubles, send me their names.”
Notes: This was APCAC’s first meeting with Congressman Emmer, so the discussion was broad focusing on the priority issues of trade, tax reform, and travel. The group thanked the Congressman for his position on trade (Congressman stated, “We’re on the same page” regarding TPP), and raised the issue of residence-based taxation. Emmer said that he sees tax reform being pushed through this year and that territorial adjustment was a guarantee on the corporate side (uncertain on individual side).
Rep. Donald McEachin (D-VA) Meeting With: Member BGR Staff: Jonathan Mantz
Notes: • Meeting was with a junior staffer, but they had a good understanding of our issues. • Interested in the travel card.
Rep. John Rutherford (R-FL)
Meeting With: Member BGR Staff: Carola McGiffert
Notes: Rep. Rutherford is new to Congress and openly challenged the Obama Administration’s TPP but is very open to international trade given his proximity to the port city of Jacksonville. During the brief meeting, staff took notes and the Congressman listened as the APCAC group went through priority issues with particular emphasis on the APEC Business Travel Card since he is a member of the Homeland Security Committee. Rep. Rutherford expressed he would supportive of the APEC visa issue.
Rep. Roger Williams (R-TX) Meeting With: Member and Colby Hale (Chief of Staff) BGR Staff: William Crozer
Follow-Up: Inclusion of residency based taxation in Congressman’s tax proposal (Jumpstart America).
Notes: APCAC had not previously engaged Congressman Williams’s office so the discussion was broad focusing on priority issues.
• Tax reform was a focal point given the Congressman’s continued engagement on the issue – he has released his own corporate tax overhaul plan. The Congressman said that the underlying principle of his proposal was to “just let the market work.” He was open to having territoriality for individuals included in his plan. The group also engaged on FATCA. • A member of the Travel & Tourism Caucus, the Congressman was supportive of ABTC reauthorization.
Rep. Joe Wilson (R-SC) Meeting With: Member BGR Staff: Ryan Long
Follow-up: Congressman will become a cosponsor on travel card extension bill.
Notes: This was a productive meeting with Congressman Joe Wilson. The Congressman listened attentively to the group and displayed interest and concern on the issues that the group raised. The Congressman is willing to talk to Brady on the tax issue. Additionally, the Congressman committed to becoming a cosponsor on the travel card extension bill. He also emphasized that he is a supporter of TPP and supports ensuring that we have trade deals in place with Asian countries. He also committed to joining the ASEAN Caucus. Finally, the Congressman will look at a sending letter to (person to be determined) about lifting the banking sanctions in Myanmar that put businesses at a disadvantage.
______4:00 - 4:30pm Meetings
Rep. Scott DesJarlais (R-TN) Meeting With: Member BGR Staff: Brent Delmonte
Notes: A member of the Freedom Caucus of hardline conservatives, Rep. DesJarlais has been rated one of the most conservative members of the House. He is known to break with leadership and in fact voted against then- Speaker of the House John Boehner reelection in 2015. The Congressman and staff listened to the APCAC group as they discussed priority issues. He showed interest when the group highlighted the importance of expanding market access in the Asia-Pacific.
Rep. Steve King (R-IA) Meeting With: Member
BGR Staff: Erskine Wells
Notes: APCAC had not engaged Congressman King in recent Doorknocks, so the discussion was broad but focused primarily on trade. Representing an agricultural-dependent district, the Congressman noted APCAC’s concerns and provided feedback on the current state-of-play in Congress. The Congressman finds himself at odds with the administration in several areas, including trade enforcement. He has been active in opposition to retaliatory moves against trading partners (tariffs, etc.) fearing a trade war. This will be an ongoing point of contention given the administration’s preference for trade enforcement (Sec. 232, etc.).
Rep. Darren Soto (D-FL) Meeting With: Member BGR Staff: Carola McGiffert
Notes: The group met with Congressman Darren Soto who was very interested in the issues raised by the group. This was the first time the Congressman had met with the group from APCAC. They discussed the importance of trade in the region, as well as the tax issues encountered by Americans working in Asia. The Congressman has a strong reputation for supporting business and was therefore very interested in both the issues of trade and the tax placed on Americans working abroad. Furthermore, the topic of agriculture is particularly important to the Congressman since his constituents are largely employed in citrus production.
Rep. Brad Schneider (D-IL) Meeting With: Staff BGR Staff: William Crozer
Follow-Up: Talking points for New Democrats on residence-based taxation. Support for ABTC reauthorization.
Notes: APCAC has not previously engaged the Congressman’s office, so the conversation was broad focusing on APCAC priority issues – trade, taxes, and travel. Particular emphasis was placed on tax reform because the Congressman co-chairs the New Democrat Coalition’s tax reform task force.
• On trade, the group gave a broad overview and highlighted the loss of opportunities for wide range of businesses, etc. The group outlined the impact on Americans living and working overseas and tied it back to the domestic economy. • On tax reform, the discussion centered on the equitable treatment of Americans living and working abroad and highlighted the importance of having a level playing field to promote competition. The group raised the possibility of the New Democrats incorporating APCAC’s residency-based taxation proposal in their forthcoming tax platform. • On travel, the group asked for the Congressman’s support of H.R. 2805 and raised possibility of new Democrat Coalition and Problem Solvers Caucus endorsing the measure.
Rep. John Faso (R-NY) Meeting With: Patrick Rooney (Legislative Director) BGR Staff: Ryan Long
Follow-Up: ABTC reauthorization
Notes: A freshman member, Faso campaigned on boosting his district’s “flagging” economy, which has been hit by weak job growth and a shrinking population. Chief of Staff Patrick Rooney said that Rep. Faso supported TPP and understands the economic benefits of expanding trade, however it is tough to get back on that track in this political environment. He said the Congressman will look at cosponsoring the travel card extension and will ask his boss about joining the ASEAN Caucus.
______4:30 - 5:00pm Meetings
Rep. Kevin McCarthy (R-CA) Meeting With: Member BGR Staff: Loren Monroe
Notes: APCAC met with Leader McCarthy briefly and presented him with the APCAC Award. They had a brief discussion of exports from California to the Asia-Pacific Region. The APCAC group raised the APEC business travel card and making territorial taxation apply to individuals.
Sen. Steve Daines (R-MT) Meeting With: Member BGR Staff: Carola McGiffert
Notes: This was a very productive meeting with the Senator due to his personal experience abroad. The Senator has met with the coalition from APCAC previously, and so this discussion was a continuation of work from previous years. The group thanked the Senator for his leadership in co-sponsoring the S. 504 bill for the ABTC. The Congressman agreed with the group’s position towards trade in that it should be more open, and he sympathized with the group members’ experiences in tax issues, especially as he himself worked abroad for several years. Finally, the group addressed the FATCA repeal and asked for his support. The Congressman listened to the groups concerns, but did not confirm his support on the group’s requests. The Congressman also expressed his regret for withdrawal from TPP.
Rep. Devin Nunes (R-CA) Meeting With: Harold Atkins (Policy Advisor) BGR Staff: William Crozer
Follow-Up: Residency-based taxation. Support for ABTC reauthorization.
Notes: APCAC previously engaged with Congressman Nunes’s office in 2016. This year, the discussion was broad reemphasizing key points on trade, taxes, and travel.
• On trade, Harold raised a point that the group heard throughout the day – that being that the “updated” provisions negotiated in the TPP likely to be included in NAFTA renegotiation. • On tax reform, the group highlighted the Congressman’s leadership on the issue via his introduction of the ABC Act, which focuses on corporate tax reform. The group highlighted the importance of creating a level playing field across the board, including for individuals, and raised the point of residency-based taxation. The group also discussed FATCA reform/repeal efforts. • On travel, the group asked for the Congressman’s support of H.R. 2805. Illustrated that it was a show of commitment towards the Asia-Pacific.
Sen. Richard Burr (R-NC) Meeting With: Ann Woods Hawks (Legislative Assistant) BGR Staff: Walker Roberts
Notes: Discussion was broad walking through APCAC priority issues – trade, taxes, and travel. Attention was given a vacuum on U.S. policy towards Asia – do not see much interest or involvement and sense a lack of initiative. The APEC Summit in November is a key opportunity.
• On trade, Steve Okun underscored that it is important for Administration and Congress to push not just for bilateral trade deals but stay engaged on multilateral front as well.
• On tax reform, the group discussed the importance of creating a level playing field for American workers living and working overseas. Highlighted the need to “stay on equal footing” with foreign competition. • On travel, the group rovided description of the APEC travel card, noting it is 15 visas in one document and, once the 2011 authorization expires in 2018, it is necessary for the Congress to reauthorize the program. Would be a good signal to have it passed by this year’s APEC meeting in November. The group asked for the Senator to co-sponsor S. 504. • Finally, Ann Hawks thanked the delegation for coming to see her, said she would share their views with the Senator, would take a look at S.504 and noted that Senator Burr is a strong proponent of trade, strong ties to Asia and that Senator Burr had conveyed those views directly to Administration officials. She further noted that the it appears the Administration is still trying to figure out exactly where they want to be on trade matters.
______5:00 - 5:30pm Meetings
Sen. Pat Roberts (R-KS) Meeting With: Emily Patt (Legislative Assistant – Trade) BGR Staff: Dave Boyer
Notes: APCAC engaged the Senator’s office during the 2016 Doorknock, so staff was familiar with priority issues. The discussion focused primarily on the importance of strong trade agreements and the challenges posed by current U.S. corporate and personal tax policies. Particularly, attendees highlighted the fact that current tax policy is financially unfair to Americans working abroad and also hinders upward mobility among Americans doing so, making it less likely Americans would hold senior executives in multinational companies competing in global economy. Emily listened attentatively, and while she did not make any commitments on APCAC priorities, she noted that tax and trade policies are of acute interest to the Senator, as he is a member of the Finance Committee, and Chairman of the Agriculture Committee.
Rep. Pramila Jayapal (D-WA) Meeting With: Ven Neralla (Legislative Director) BGR Staff: Olivia Earenfight
Notes: Laura Younger (Japan) lead the discussion, which centered mostly on tax issues. It is noted that the Congresswoman is one of the more liberal members of Congress and thus not as inclined to support APCAC priority issues on trade and tax reform. However, as a freshman, it is important to remain engaged and to build support by introducing and explaining the importance of the issues not only to American interests abroad but the domestic economy and workers.
• On tax reform, the group provided anecdotes on the difficulties of being Americans working abroad. They pointed out that the U.S. is the only country that taxes its citizens the way that we do, and because of this, foreign countries are unwilling to hire us. We are losing competitive advantages to Australians and the British. The group also provided anecdotes on how their banks abroad are firing them as clients because it is too expensive to have them as clients. They discussed how there is a lack of American leadership in Asia is resulting in China taking over leadership. • On trade, the group briefly discussed the Trade Bloc in Asia, however there was not enough time to delve into the issue fully.
Sen. Bill Nelson (D-FL) Meeting With: Danny Hague (Legislative Correspondent) BGR Staff: Carola McGiffert
Notes: Nelson sits on the Senate Finance Committee’s Trade Subcommittee. He is a consistent backer of free trade agreements and supported Trade Promotion Authority (TPA). He also backed Commerce Secretary Wilbur Ross’s
confirmation. Staffer Danny Hague listened to the APCAC group as they discussed their priority issues and took good notes. He said he would look into the tax issue and that his boss was supportive of the APEC visa issue.
Rep. Josh Gottheimer (D-NJ) Meeting With: Daniel Marrow (Legislative Correspondent) BGR Staff: William Crozer
Follow-Up: Introduction of residency-based taxation proposal with Problem Solvers Caucus.
Notes: Gottheimer casts himself as a centrist Democrat. He is co-chair of the bipartisan Problem Solvers Caucus and is also a member of the New Democrat Coalition. Because the Congressman is a freshman, the group’s discussion was broad focused on trade, taxes, and travel.
• On trade, Daniel noted that the Congressman has been engaged by many groups on the issue. The office is also hearing from businesses in the district. Drawing from the Congressman’s background (worked for Ford and Microsoft), Daniel stated that there is a profound interest in the issue. Daniel highlighted that the Congressman is a strong proponent of Ex-Im. • On tax reform, Daniel stated that the Congressman is supportive of reforming and lowering taxes. When asked about residency-based taxation, Daniel said that there is some hesitation about publicly supporting certain proposals or provisions at this early stage of negotiations. Daniel did say that the Problem Solvers Caucus is actively engaged with the administration on the issue of tax reform. • On travel, the group asked for the Congressman’s support of ABTC reauthorization. The group noted that it initially passed with broad bipartisan support and represents a recommitment to the Asia-Pacific.
Rep. Sandy Levin (D-MI) Meeting With: Eden Forsythe (Legislative Counsel) BGR Staff: Walker Roberts
Notes: Discussion was substantive. The group explained that the perceptions of policy is really important in Asia and so after the decisions on TPP and climate change, there is deep anxiety and confusion in Asia about U.S. policy. The group also underscored of importance of CO-DELS to the region which help facilitate discussion and provide context/explanation of the new Administration’s policies. • On trade, Judy Benn noted that 60 percent of exports to Asia are made by companies that belong to APCAC. Eden asked what were the major exports for those in the room – Thailand (oil/gas/electronics); Hong Kong (financial services/trade/garment/legal); Australia (wine/agriculture/dairy products); New Zealand (agriculture/technology). The group further noted that APCAC strongly supports the TPP and they regretted that the US withdrew noting that it will likely take too long and work to try to implement the deal in a series of bilateral deals. Eden explain on trade, it is not clear what the Administration’s policy is and senior officials have been saying different things; she said it is not clear whether it is an effort to promote strategic confusion or just crossed signals. Eden asked about what the delegation hears on the trade agenda. The delegation noted that they believe the agenda includes NAFTA, post BREXIT (US-UK bilateral deal) and other bilateral deals. • On tax, the group explained issues with tax treatment of individuals living and working overseas and noted that some U.S. citizens working abroad were giving up their citizenship because of the tax situation. • On travel, the delegation explained the issue surrounding the ABTC and requested Eden to look at having Congressman Levin cosponsor the bill.
______5:30 – 6:00pm Meetings
Rep. Ted Deutch (D-FL) Meeting With: Member BGR Staff: Olivia Earenfight
Notes: The meeting was held in the hallway outside of a room where the Congressman was leading votes. The group discussed tax issues, trade issues, and thoroughly discussed the APEC business travel card. They showed him their APEC cards and he seemed very interested in the cards. The discussion was focused mostly on issues such as the double tax and how Americans are losing a competitive advantage in hiring. The Congressman was a very avid listener and asked questions to the group. He neither confirmed his support on the issues that APCAC raised, nor did he say he wouldn’t support them. He understood their concerns and seemed to agree with their concerns, however, he did so without saying it explicitly.
Sen. Joe Donnelly (D-IN) Meeting With: Carlos Arredondo (Legislative Correspondent) BGR Staff: Carola McGiffert
Notes: The group met with Carlos Arredondo, the Legislative Correspondent for Senator Donnelly. Carlos listened attentively and the group gave a broad description of the three issues, tax, trade, and the travel card. The staff was very interested in the Travel Card. Carlos also mentioned that they would look into the tax issue that Americans are encountering in Asia. Carlos did not commit to anything on behalf of the Senator, but did seem concerned with the issues that the group raised.
Rep. Brian Fitzpatrick (R-PA) Meeting With: Joseph Knowles (Legislative Counsel) BGR Staff: William Crozer
Notes: Because the Congressman is a freshman, the discussion was broad walking through priority issues and their importance to American interests abroad and the domestic economy alike.
• On tax reform, the group framed the discussion of residency-based taxation around competitiveness. Joe appeared supportive of the proposal. The group also raised issues with FATCA noting that reform/repeal should also be included in tax reform discussions. • On trade, the group framed the discussion around geopolitical/strategic implications of remaining engaged in the Asia-Pacific (the Congressman serves on the House Foreign Relations Committee). The group highlighted that other countries are filling the void as evidenced by RCEP and TPP 11. Joe said that RCEP is “not that good.” The group countered stating that it does have tariff brakes, which puts U.S. companies at further disadvantage to foreign rivals. Joe noted that the administration is looking for “easy bilateral wins” with certain countries to build support for more expansive trade agreements.
Thursday, June 22nd Meetings
______8:00 – 9:00am Meeting
Department of Commerce Meeting With: Diane Farrell (Deputy Assistant Secretary for Asia) BGR Staff: William Crozer and Noelle Carter
Follow-Up: Ms. Farrell requested information on infrastructure investment in relation to Australia. She also encouraged the group to continue to provide feedback to Commerce and USTR as it is important, particularly at this juncture, in policy formulation and implementation.
Notes: The delegation was very familiar with Deputy Assistant Farrell, so the conversation was broad and more focused on Question and Answer. Ms. Farrell did provide opening remarks highlighting Commerce’s continued commitment to the Asia-Pacific and providing insight into the emerging trade agenda.
• Ms. Farrell noted several impressions regarding trade policy: o Countries trying to understand what the future looks like in trade arena. On this point, she noted that Commerce is finalizing a deficit study but noted that at least eight of the 16 countries under consideration are in Asia. All examinations will include look at services as well as goods. The overarching point is that studies/reports are really going to dictate path forward. o Sec. 232 investigation of steel and aluminum ongoing. Enforcement actions expected. This highlights the administration’s focus on deficit reduction via trade enforcement. o On TPP 11, Ms. Farrell noted that because Mexico and Canada are in the process of NAFTA renegotiation, it is unlikely they will devote a significant amount of time to TPP 11. So, do not expect any concrete action on the “revised” agreement in the near future. That being said, Ms. Farrell highlighted that the administration is serious in its approach of negotiating bilateral agreements. She also spoke on the sensitivity within the administration about the U.S. ceding leadership to China in Asia (noted CFIUS and Sec. 232 investigations). o On the U.S.’s commitment to Asia, Ms. Farrell said that she did not know what the budget would be and what impact expected cuts will have on “boots on the ground.” She did highlight that Commerce was not a target of large cuts. • Other points of discussion were on infrastructure, sanctions on Myanmar, etc.
______10:00 – 10:30am Meeting
Sen. John McCain (R-AZ) Meeting With: Elizabeth O'Bagy (Legislative Assistant – International Trade and Foreign Finance) BGR Staff: William Crozer
Notes: Meeting was targeted towards the Australian delegation given the Senator’s close ties with the country. O’Bagy was very familiar with the issues ranging from trade to tax reform to the APEC Business Travel Card.
• On trade, O’Bagy expressed support for expanded trade, including multilateral agreements. She raised the Senator’s concern with evolving trade policy noting NAFTA renegotiation and chatter surrounding KORUS. O’Bagy said that it is becoming “increasingly hard” to support trade on the Hill in this environment. She did mention Senator Mike Lee’s legislation on global trade that looks to expand Congressional jurisdiction over trade policy (see Global Trade Accountability Act). • On tax reform, the group encouraged the Senator to support residence-based taxation for individuals. O’Bagy said that the office has heard similar concerns from other AMCHAMS around the world. • On travel, the group raised ABTC reauthorization. O’Bagy was supportive and noted the Senator’s support for the previous bill.
______10:30 – 11:00am Meeting
Rep. Judy Chu (D-CA) Meeting With: Sonali Desai (Legislative Director) BGR Staff: Jonathan Mantz & William Crozer
Follow-Up: ABTC sponsorship and distribution to Asian Pacific American Caucus.
Notes: The Congresswoman is Chair of the Asian Pacific American Caucus. APCAC has consistently met with the caucus over the past several Doorknocks. The discussion was designed to reaffirm APCAC’s positioning on the issues. It is interesting to note that the Caucus and its members, composed almost entirely of Democrats, are typically not supportive of APCAC priority issues.
• On trade, the group highlighted declining U.S. leadership in the Asia-Pacific and other countries filling the
void (RCEP and Asian Infrastructure Bank). This is having an outsized impact on American competitiveness. • On tax reform, the group walked through residence-based taxation and its importance to leveling the playing field. The group provided anecdotal evidence of lack of U.S. leaders in region and foreigners running U.S. Chambers. FATCA was also discussed. • The group asked for the Congresswoman’s support for ABTC reauthorization. Sonali said that the office would review the legislation and distribute to the Caucus.
______11:00 – 11:30am Meeting
Rep. Ann Wagner (R-MO) Meeting With: Rachel Wagley (Foreign Policy Advisor) BGR Staff: Jonathan Mantz & William Crozer
Follow-Up: ABTC reauthorization co-sponsorship and ASEAN Caucus endorsement.
Notes: Wagner is a co-founder of the ASEAN Caucus with Rep. Castro (D-TX). While she was rumored to being running for U.S. Senate, Wagner has since withdrawn her name from consideration. Discussion was broad covering APCAC priority issues.
• On trade, the group positioned the issue in terms of declining U.S. leadership in the region. The group highlighted importance of trade to agriculture and small-and-medium sized businesses. • On tax reform, the group positioned the issue around competitiveness and downstream impact on purchasing decisions, etc. The group raised FATCA concerns and outlined compliance burdens (mentioned H.R. 2054). • On travel, the group asked that the Congresswoman to co-sponsor the bill and to have the ASEAN Caucus officially endorse.
______11:30am – 12:00pm Meeting
Rep. Ro Khanna (D-CA) Meeting With: Member & Pete Spiro (Chief of Staff) BGR Staff: Jonathan Mantz & William Crozer
Follow-Up: Congressman mentioned a potential CODEL to South East Asia and wanting to coordinate with AMCHAMS.
Notes: Very productive meeting with a long conversation about how Congressman comes to a position on trade, especially when so many of his constituents are tech leaders, keeping in mind he represents Silicon Valley.
• On tax reform, the group raised need to harmonize tax treatment of individuals with that of corporations. The group noted the burdens of dealing with two tax systems and resulting competitiveness concerns. Chris said that the Congressman is waiting to see details before committing one way or another. • On free trade, the Congressman and Chris noted concerns over impact of the TPP on workers. Also had concerns over “Buy American” provisions and potential for favoring some U.S. companies over others. • On travel, the group raised ABTC reauthorization. The Congressman was aware./