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,