Trade Matters Alert October 13, 2015 Vol. 16 No 42

NFTC News

NFTC Chairman: “Why ’s Opposition To The TPP Could Hurt Her”

On Friday, National Foreign Trade Council (NFTC) Chairman Alan Wolff commented on Democratic presidential candidate Hillary Clinton’s position on the recently completed Trans-Pacific Partnership (TPP) agreement.

Excerpt: “While Clinton’s change of heart is cheering to some and dismaying to others, it’s actually not that surprising if you take a closer look. When Bill Clinton and ran for president, they announced that they were skeptical of free trade agreements. , who is running ahead of Hillary Clinton in New Hampshire and opposed the TPP early on, has said his opponent should have opposed the agreement well before the deal was struck. All this might suggest that Democrats are against free trade, but the story is more complex than that. There is more support for free trade agreements (FTAs) among Democrats than among Republicans. Democrats support FTA’s by 58%, while Republicans support FTAs by 53%, according to the Pew Research Center, which polled 2,002 adults in May 2015.”

For the full column, visit: http://fortune.com/2015/10/09/hillary-clinton-trans-pacific-partnership-opposition- hurting-her/

NFTC Reacts to U.S.-EU Safe Harbor Framework Decision

On Wednesday, NFTC President Bill Reinsch released a statement responding to the decision by the European Court of Justice to invalidate the U.S.-EU Safe Harbor Framework, a longstanding policy bridge that permitted companies to transfer personal data of European citizens while ensuring privacy.

Reinsch: “Government and business leaders on both sides of the Atlantic recognize that trade between the United States and the countries of the European Union is clearly and deeply mutually beneficial, and commerce in the 21st century involves numerous data-driven services and applications that support that trade in ways that are critical to consumers, entrepreneurs and businesses of all sizes. … The National Foreign Trade Council joins others calling for quick and responsible follow up to the recent court ruling on the Safe Harbor to permit consumers and businesses on both sides of the Atlantic to continue to engage in commerce in a manner that benefits consumers and businesses of all sizes while at the same time ensuring proper data safeguards. This is an eminently achievable goal.”

For the full statement, visit: http://www.nftc.org/newsflash/newsflash.asp?Mode=View&id=236&articleid=3994&category=All

NFTC Signs Letter Expressing Disappointment with Revision to October 2015 Visa Bulletin

Early last week, NFTC joined a group of associations and companies in sending a letter to U.S. Secretary of State , U.S. Secretary of Homeland Security and Assistant to the President and Director of the Domestic Policy Council Cecilia Muñoz outlining their concerns with the Department of State’s recent revision to the October 2015 visa bulletin.

October 13, 2015 1 NFTC Trade Matters Vol. 16 No. 42 Excerpt: “We urge you to reinstate the opportunity originally promised to this group of high skilled immigrants and whose contributions and personal investments benefit our country, and our economy, on a daily basis. We also urge the agencies to be more transparent in how they calculate backlogs, demand and availability of immigrant visas. It is unclear at this time whether the recent structural changes to the visa bulletin process will achieve the administration’s goals of maximizing green card number utilization and allowing additional immigrants to file adjustment of status applications. The current lack of transparency on the immigrant visa allocation process is a critical impediment to the integrity of the system.”

For the full letter, visit: http://www.nftc.org/default/VISA/Visa%20Bulletin%20Joint%20Letter%20100415.pdf

This Week: NFTC World Trade Dinner – October 15, 2015

The NFTC World Trade Dinner honoring United States Trade Representative (USTR) and U.S. Secretary of Commerce Penny Prizker is this Thursday, October 15, 2015, from 6:30pm to 9:30pm.

Marriot Marquis Washington, DC 901 Massachusetts Avenue NW Washington, DC 20001

For more information, contact NFTC James Wilkinson at [email protected] or click here.

Hill Updates

Hoyer Statement on Ex-Im Bank Discharge Petition

On Friday, House Democratic Whip Steny H. Hoyer (MD) released a statement after 218 members signed a discharge petition to force a vote on reopening the Export-Import Bank.

Representative Hoyer: “Today, a majority of Representatives in the House – Democrats and Republicans standing together – signed a discharge petition to bring to the Floor a measure that would reopen the Export-Import Bank. Since the Bank shut down in July, American exporters have been at a disadvantage against foreign competitors, and some businesses have already begun to send American jobs overseas as a result. Congress has a responsibility to work together to ensure that American businesses and their workers have every advantage they need to compete and succeed in the global marketplace, and allowing the Bank to shut down for months has engendered dangerous and unnecessary uncertainty about whether we will meet that responsibility.”

For the full statement, visit: http://www.democraticwhip.gov/content/hoyer-statement-export-import-bank- discharge-petition

Chairman Hatch Speaks on Senate Floor on TPP and Accountability

On Wednesday, Senate Finance Committee Chairman Orrin Hatch (R-UT) delivered a speech on the Senate floor that outlined the criteria the TPP must meet, including those outlined by recently passed Trade Promotion Authority legislation, to gain his support.

Chairman Hatch: “Toward that end, as I continue to review the deal that was struck in Atlanta, three important considerations will determine whether I can support this agreement. First, the deal must be balanced and meet the U.S. negotiating objectives established under our Trade Promotion Authority, or TPA, statute, which Congress passed earlier this year with strong bipartisan majorities in both the House and Senate. Second, I must have confidence that our trading partners will actually live up to the commitments they’ve made under the agreement by implementing the terms and obligations included in the deal. Third, the agreement must be subjected to a thorough and rigorous Congressional review, including in-depth consultation with the administration.”

October 13, 2015 2 NFTC Trade Matters Vol. 16 No. 42 For the full statement, visit: http://www.finance.senate.gov/newsroom/chairman/release/?id=cd924b18- 0561-4d9e-b247-20c400f25869

Chairman Ryan Comments on OECD BEPS Proposal

Last Monday, House Ways and Means Committee Chairman Paul Ryan (R-WI) reacted to the Organisation for Economic Co-operation and Development’s release of recommendations under its Base Erosion and Profit Shifting project, which seeks to address the tax treatment of corporate profits earned across borders.

Chairman Ryan: “This is the consequence of a broken and neglected American tax system. Trillions of dollars of American capital are locked out of the United States and, as a result, U.S. companies are being targeted by governments eager to tax away their earnings. While the details still require close review, this proposal will only increase the pressure for American businesses to move overseas. And it could put huge new burdens on American job creators. That’s one reason I’m troubled that the administration has not responded to questions Chairman Hatch and I have raised about some of the proposed requirements. Ultimately, the solution is to bring our tax code into the 21st century, allowing companies to bring back their earnings without penalty and making our tax rates more competitive with the rest of the world. There is never going to be a perfect time to fix the tax code, but stalling for so long got us into this problem. We can’t afford to wait any longer.”

For the full statement, visit: http://waysandmeans.house.gov/ryan-responds-to-oecd-beps-proposal/

News from the Administration

USTR: “What They’re Saying: Completion of Trans-Pacific Partnership (TPP) Negotiations”

In a blog post on Thursday, USTR highlighted reactions from members of the Administration, associations – including NFTC – business leaders, environmental groups, think tanks and other stakeholders on the completion of the TPP.

For the blog post, visit: https://ustr.gov/about-us/policy-offices/press-office/blog/2015/october/what- they%E2%80%99re-saying-completion-trans-pacific

Commerce Releases Fact Sheets on Benefits of TPP

On Wednesday, U.S. Secretary of Commerce Penny Prizker highlighted the benefits of TPP to the U.S. economy with a series of fact sheets that detail the increased value of U.S. goods and services exports, the number of U.S. jobs supported by these exports and the value of foreign investment into the United States from the 11 TPP member countries.

Secretary Pritzker: “The trade agreement reached between the United States of America and 11 other countries is a substantial win for our nation’s workers, farmers, and businesses who support well-paying jobs by exporting ‘Made-in-America’ goods and services. The Trans-Pacific Partnership is a tough, high- standard, and modern trade agreement that reflects our values on labor, the environment, and human rights. TPP will strengthen the hand of American workers and ensure that our businesses can compete on a level playing field in some of the world’s most significant markets.”

For the full statement, visit: https://www.commerce.gov/news/press-releases/2015/10/us-secretary- commerce-penny-pritzker-highlights-economic-benefits-trans

Commerce Preliminarily Finds Dumping of Imports of Certain Polyethylene Terephthalate Resin

On Wednesday, the Department of Commerce announced its affirmative preliminary determinations in the antidumping duty (AD) investigations of imports of certain polyethylene terephthalate (PET) resin from Canada, China, India and Oman.

Commerce is scheduled to announce its final determinations on or about February 26, 2016; unless the statutory deadline is extended. If Commerce makes affirmative final determinations, and the U.S.

October 13, 2015 3 NFTC Trade Matters Vol. 16 No. 42 International Trade Commission (ITC) makes affirmative final determinations that imports of PET resin from Canada, China, India, and/or Oman materially injure, or threaten material injury to, the domestic industry, Commerce will issue AD orders. If either Commerce’s or the ITC’s final determinations are negative, no AD orders will be issued. The ITC is scheduled to make its final injury determinations in April 2016.

For more information, visit: http://enforcement.trade.gov/download/factsheets/factsheet-multiple-pet-resin- prelim-100815.pdf

Secretary Pritzker Comments on EU Court of Justice Safe Harbor Decision

In a statement last Tuesday, Secretary Pritzker expressed her disappointment with the European Court of Justice decision surrounding the Safe Harbor Framework.

Secretary Pritzker: “Since 2000, the Safe Harbor Framework has proven to be critical to protecting privacy on both sides of the Atlantic and to supporting economic growth in the United States and the EU. We are deeply disappointed in today’s decision from the European Court of Justice, which creates significant uncertainty for both U.S. and EU companies and consumers, and puts at risk the thriving transatlantic digital economy. Among other things, the decision does not credit the benefits to privacy and growth that have been afforded by this Framework over the last 15 years. … We are prepared to work with the European Commission to address uncertainty created by the court decision so that the thousands of U.S. and EU businesses that have complied in good faith with the Safe Harbor and provided robust protection of EU citizens’ privacy in accordance with the Framework’s principles can continue to grow the world's digital economy.”

For the full statement, visit: https://www.commerce.gov/news/press-releases/2015/10/statement-us- secretary-commerce-penny-pritzker-european-court-justice

ITA Releases August 2015 U.S. International Trade in Goods and Services Data

Last Tuesday, U.S. Under Secretary of Commerce for International Trade Stefan M. Selig commented on the August 2015 U.S. International Trade in Goods and Services data, which showed overall U.S. exports of goods and services decreased to $185.1 billion from $188.8 billion in July.

Under Secretary Selig: “Today’s data shows that while we face global economic headwinds, there continues to be demand for our nation’s world-class products, technologies, and services around the world. U.S. companies of all sizes are committed to building and expanding their businesses through exports to reach the more than 95 percent of consumers who live outside our borders. The Trans-Pacific Partnership will strengthen the hand of American workers and ensure that our businesses can compete on a level playing field in some of the world’s most significant markets. The Commerce Department played a critical role in the TPP negotiations and we look forward to ensuring U.S. companies are able to capitalize on the benefits of this agreement once it is approved.”

For the full statement, visit: http://trade.gov/press/press-releases/2015/statement-from-under-secretary- selig-on-international-trade-in-august-2015-100715.asp

2016 SelectUSA Investment Summit Announced

Last Tuesday, Secretary Pritzker announced the Department of Commerce will host the SelectUSA Investment Summit from June 19 to June 21, 2016 in Washington, DC. This is the third summit, and is designed to promote and facilitate international investment in the United States.

Secretary Pritzker: “Our country is home to a skilled and productive workforce, unmatched institutions of higher education, strong intellectual property protections, a commitment to innovation, an abundant and stable energy supply, and access to millions of global consumers through high-quality free trade agreements. “For these reasons and more, CEOs from around the world have ranked the U.S. as the number one place to invest for three years in a row.”

For the full statement, visit: https://www.commerce.gov/news/press-releases/2015/10/us-secretary- commerce-penny-pritzker-announces-2016-selectusa-investment October 13, 2015 4 NFTC Trade Matters Vol. 16 No. 42

Commerce Finds Dumping, CVD of Imports of Welded Line Pipe

Last Tuesday, Commerce announced its affirmative final determinations in the AD investigations of imports of welded line pipe from Korea and Turkey and the countervailing duty (CVD) investigation of imports of welded line pipe from Turkey. Commerce also announced its negative final determination in the CVD investigation of imports of welded line pipe from Korea.

The ITC is scheduled to make its final injury determinations on or about November 18, 2015. If the ITC makes affirmative final determinations that imports of welded line pipe from Korea and/or Turkey materially injure, or threaten material injury to, the domestic industry, Commerce will issue AD orders for those countries and a CVD order for Turkey. If the ITC makes negative determinations of injury, the investigations will be terminated. As a result of Commerce’s negative final determination, the CVD investigation of welded line from Korea is already terminated.

For more information, visit: http://enforcement.trade.gov/download/factsheets/factsheet-multiple-welded- line-pipe-ad-cvd-final-100615.pdf

Other News

From Dentons: “The Trans-Pacific Partnership (TPP) Agreement”

Following the completion of the TPP last Monday, Dentons released an outline of the key elements of the agreement and next steps as it moves toward ratification in each of the 12 member countries.

For more information, visit: http://www.dentons.com/en/insights/alerts/2015/october/7/the-trans-pacific- partnership-tpp- agreement?ParentItemID=ktrrmYwQ8YF3a5SKjru8rjQh4mofQ7sXIz2lFCnRwTHpmyWPUqCnxA==&Arch ive=False

Programs & Events of Interest

Automotive Component Manufacturing Opportunities in Botswana Thursday, October 15, 2015 10:00 AM EDT

11th Round Transatlantic Trade and Investment Partnership Negotiations October 19 to 23, 2015 Miami, Florida

In Case You Missed It

“House Passes Bill Axing Oil Export Ban, Veto Looms” Reuters October 9, 2015 http://www.reuters.com/article/2015/10/09/us-usa-oilexports-house-idUSKCN0S31TG20151009 A bill to repeal the U.S. oil export ban passed the House of Representatives on Friday, but faces an uncertain future after a veto threat by President Barack Obama. The bill sponsored by Representative Joe Barton, a Texas Republican, passed the House 261 to 159, failing to reach the 290 votes necessary to overturn a presidential veto.

“House Bipartisan Petition Forces Vote On Ex-Im Bank Reauthorization” Wall Street Journal October 9, 2015 http://www.wsj.com/articles/gop-lawmakers-advance-bipartisan-effort-to-reauthorize-ex-im-bank- 1444406397 House lawmakers backing the U.S. Export-Import Bank gained enough support Friday to force a vote to renew the agency’s charter, a blow to conservative Republicans who sought to shutter the bank this

October 13, 2015 5 NFTC Trade Matters Vol. 16 No. 42 summer. Republican supporters of the agency, which finances U.S. exports, filed a discharge petition in the House on Friday and received the required 218 signatures to force a vote on a measure to reauthorize the bank.

“Company Stampede To Southeast Asia Seen On Trans-Pacific Partnership Trade Pact” Wall Street Journal October 7, 2015 http://www.wsj.com/articles/company-stampede-to-southeast-asia-seen-on-trade-pact-1444230531 Even before the ink is dry on the Trans-Pacific Partnership trade deal, companies are laying out plans to expand in Vietnam and Malaysia, both rapidly developing Asian nations whose growth depends heavily on external trade. Manufacturers of apparel, rubber gloves and bikes are among those considering increasing production in the Southeast Asian countries to capitalize on export growth expected from the accord, which sweeps away tariffs to markets including the U.S., the world’s biggest economy.

“U.S. Allies See Trans-Pacific Partnership As A Check On China” New York Times October 6, 2015 http://www.nytimes.com/2015/10/07/world/asia/trans-pacific-partnership-china-australia.html The Trans-Pacific Partnership trade deal was welcomed on Tuesday as a win for the United States in its contest with China for clout in Asia, as America’s allies expressed optimism about the impact of the 12- nation accord on a region worried about its dependence on the slowing Chinese economy. The pact still must win approval in Congress, and analysts said the economic effects may be less sweeping than Washington predicts. But the mere fact that President Obama delivered on his pledge to close the deal came as a relief to allies in Asia.

“How Washington Could Kill The Trade Deal” October 5, 2015 http://www.politico.com/story/2015/10/trade-deal-future-in-washington-214429 After six years of grueling negotiations, an agreement on the TPP will soon be released to the world — straight into the neon glare of a presidential election campaign. The biggest trade deal in history is about to become Washington’s biggest political football. After nearly six years of grueling negotiations, details of the Trans-Pacific Partnership hammered out behind closed doors will soon be released to the world — straight into the neon glare of a presidential election campaign and a bitterly divided Congress.

Calendar of Events

October 15, 2015 World Trade Dinner and Award Ceremony—Washington DC

October 15, 2015 National Foreign Trade Council’s Annual Meeting – Washington DC

October 20, 2015 International Benefits Committee Meeting - New York City (By Invitation)

October 22-23, 2015 NFTC Fall Tax Meeting – Washington DC

November 4, 2015 NFTC Tax Lunch Forum - Speaker: TBA – Washington DC

November 12, 2015 International Compensation & Benefits Committee – Houston TX (By Invitation)

December 9, 2015 NFTC Tax Lunch Forum - Speaker: TBA – Washington DC

February 18, 2016 International Benefits Committee Meeting - New York City (By Invitation)

March 16-17, 2016 Annual International Human Resources Conference - Houston, TX

June 9, 2016 International Benefits Committee Meeting - New York City (By Invitation)

September 13-15, 2016 Expatriate Management Committee New York City (By Invitation)

October 26, 2016 International Benefits Committee Meeting - New York City (By Invitation) *Note: The WTO Committee Meetings, Trade Committee Meetings, Expatriate Management, Global compensation, International Assignment Management, and International Benefits Committees are by invitation only. For information about them please contact NFTC at (202) 887-0278 or e-mail [email protected]

October 13, 2015 6 NFTC Trade Matters Vol. 16 No. 42 Links • National Foreign Trade Council www.nftc.org

• USA*Engage www.usaengage.org/

• Global Innovation Forum @ NFTC www.globalinnovationforum.com/

• U.S.-Libya Business Association www.us-lba.org

• U.S.-Kazakhstan Business Association www.uskzba.org

• Office of the U.S. Trade Representative www.ustr.gov/

• U.S. Department of Commerce www.doc.gov/

• U.S. Foreign Agricultural Service www.fas.usda.gov/

• International Trade Administration www.ita.doc.gov/

• Federal Trade Statistics www.fedstats.gov/

• U.S. Census www.census.gov/

• U.S. Department of State www.usinfo.state.gov/

• U.S. Export Portal www.export.gov/cnusa/

• California Institute for Federal Policy Research www.calinst.org

• California Chamber of Commerce www.calchamber.com/

• Public Policy Institute of California www.ppic.org/

• CalTrade Report www.caltradereport.com

• National District Export Council www.districtexportcouncil.org

• Commercial News USA www.thinkglobal.us

Trade Matters© is a weekly summary of news and events on the trade policy front for members of the National Foreign Trade Council and subscribers. To subscribe to Trade Matters or you have suggestions for articles, please e-mail us at [email protected]

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October 13, 2015 7 NFTC Trade Matters Vol. 16 No. 42