Blog Post by NFTC Chairman Alan Wolff: Is Technology Delivering on Its Promise?

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1 Trade Matters Alert March 9, 2015 Vol. 16 No 11 NFTC News NFTC and Miller & Chevalier Release 2015 Tax Policy Forecast Survey Results Today, the National Foreign Trade Council (NFTC) and Miller & Chevalier announced the results of their 2015 Tax Policy Forecast Survey. In its ninth year, the annual survey measures the current thoughts, perspectives and attitudes of leading executives on the direction of tax policy in NFTC Vice President for Tax Policy Cathy Schultz and Miller & Chevalier Member Marc Gerson led a press roundtable discussion on the results of the survey. The results can be found here: Blog Post by NFTC Chairman Alan Wolff: Is Technology Delivering on Its Promise? In a recent blog post, NFTC Chairman Alan Wolff writes: Bob Samuelson has written a great, thought-provoking piece [see The Washington Post, Light bulbs vs. the Internet, 15 February 2015]. The basic conclusion is spot-on: the cornucopia of technology is not apparently creating middle class jobs in the quantities needed, and, to boot, there are new dangers cyber-risks. Despite a number of economists finding that productivity is falling dramatically, productivity, if it means anything at all outside of jargon, has actually increased immensely. In my work as a lawyer and trade policy analyst and Bob Samuelson s as an astute columnist, it is evident that productivity has been enhanced vastly no manual typesetting, not even Ottmar Mergenthaler (inventor of the linotype machine), needed. And with communications, multiple parties can review a document simultaneously and get it into the hands of decision-makers (or publishers) in a matter of seconds. And that is true not just of scribes and policy mavens, but also of the whole business world. When I came to work at the Treasury in 1968, my boss and I (and his secretary) stayed often until 10 p.m. to get an eight page memo up to the Secretary of the Treasury currency values were a problem even then. Typewriters, carbon paper, pencils, dictation pads, messengers all gone, and sadly research librarians declining in numbers too I suspect. Productivity of the surviving individual has vastly increased, but the numbers of employees to get those same tasks done were more than decimated. The full blog post can be found here: NFTC s Chuck Dittrich to Participate in Bloomberg BNA Webinar On Tuesday, March 24 at 1:00pm ET, NFTC Vice President of Regional Trade Initiatives Chuck Dittrich will present during a Bloomberg BNA webinar discussion, titled International Trade: Could an Agreement Give U.S. Financial Services Firms Unprecedented Opportunities? March 9, NFTC Trade Matters Vol. 16 No. 10

2 The webinar will focus on the Trans-Pacific Partnership and the potential benefits to the U.S. market and U.S. financial services firms in particular. If you would like more information or are interested in joining the webinar, you can register here: NFTC Joins Coalition in Letter on Duty Drawback Simplification Legislation On February 25, NFTC joined with 10 other associations in sending a letter to Senate Finance Committee Chairman Orrin Hatch (R-UT) and Ranking Member Ron Wyden (D-OR), urging them to include duty drawback simplification legislation as part of Trade Promotion Authority and other trade legislation. The associations wrote: Members of our respective organizations participate in the duty drawback program and for many years have been strong proponents of drawback simplification legislation on which we have worked with the Congress and Customs and Border Protection ( CBP ). Duty drawback is one of the oldest laws of our nation. It was established in 1789 in order to facilitate export trade between the U.S. and its foreign trading partners. Duty drawback allows domestic companies to import merchandise and raw materials and obtain a refund of Federal duties, taxes, and fees that were paid on the imported goods if the imported goods are exported, used to manufacture products for exportation, or destroyed.... We urge you to move forward with drawback simplification as soon as possible. There is broad, bipartisan Congressional, executive branch, and industry support for drawback simplification legislation, which is noncontroversial. The private sector is in full accord with the CBP on the value of such legislation. We all recognize the value of adopting a more streamlined, efficient, and effective drawback regime that makes it easier for both the Federal Government and the private sector to administer use of this valuable, historic program. The full letter can be found here: df Next Tax Lunch Forum March 11, 2015 The next NFTC Tax Luncheon Forum to discuss current international tax issues will be held on Wednesday, March 11, 2015, at 12:00 p.m. ET at the NFTC offices, 1625 K Street, NW, Suite 200, Washington, DC. We are very pleased to announce that Ray Beeman, now with Washington Counsel E&Y and the former Tax Counsel and Special Advisor on Tax Reform for the House Ways and Means Committee, has agreed to speak to us about the Ways and Means Committee tax reform process, specifically how and why the changes were made from the first Camp international tax draft to the final draft, and the thought process in the decision making. Please join us for this informative discussion, and come prepared for a lively dialogue. For more information, please contact Catherine Schultz at cschultz@nftc.org or visit: Registration Now Open for NFTC Annual International Human Resource Conference, March 25-26, 2015, in Houston NFTC Foundation, in conjunction with HR*Houston, is hosting its 14th Annual International Human Resource Management Forum on March 25-26, 2015, at The Houstonian Hotel. In addition to subject matter experts - from Aon Hewitt; Atlas Assignment Manager; Deloitte LLP; Fragomen Worldwide; the NFTC; Net Expat; The World Trade Resource; and Zurich Insurance - the faculty will include senior international business and human resources representatives from major multinational corporations (MNC) in the energy, energy services, engineering and technology sectors, such as Bristow Group, ExxonMobil, Freeport LNG, Repsol, Schlumberger, Total and other MNCs. The focus of the conference will be managing the array of risk issues facing global enterprises today, especially in emerging markets in Africa, Latin America and South East Asia. The agenda will include sessions on: March 9, NFTC Trade Matters Vol. 16 No. 10

3 Data Mining to Improve Talent Utilization and Retention Managing Risks in the Areas of Health & Safety, Immigration and Tax Compliance, and Corruption Sourcing, Recruiting and Retaining Talent in Frontier Locations Talent and Global Mobility Management Toward Rewards Management New Market Entry: Know Before You Go And other topics to be announced HRCI Credits have been applied for. Registration is now available at a draft agenda is available at For further information or questions please contact Sandra Rodriguez at srodriguez@nftc.org. News from the Administration Statement from Secretary Pritzker on International Trade in Goods and Services in January 2015 On Friday, U.S. Secretary of Commerce Penny Pritzker issued a statement on the release of the January 2015 U.S. International Trade in Goods and Services data, which show that the goods and services trade deficit improved by $3.9 billion to $41.8 billion in January. Secretary Pritzker: Today s data reaffirms the need for strong trade policies to help U.S. businesses increase exports, which strengthen our economy and support millions of good-paying jobs here at home. The administration remains focused on getting American businesses improved access to international markets and reach the 95 percent of consumers who live beyond our borders. The full statement can be found here: The January 2015 U.S. International Trade in Goods and Services data can be found here: Statement from Ambassador Froman on President Obama s 2015 Trade Policy Agenda On Wednesday, United States Trade Representative Froman issued a statement regarding President Obama s 2015 Trade Policy Agenda. Ambassador Froman: President Obama s trade policy seeks to promote growth, support more wellpaying jobs, and strengthen the middle class in the United States. Trade policy done right is how we protect American workers and jobs, create a more fair and level playing field, and ensure that it is the United States that leads in defining the rules of the road. The statement can be found here: The president s 2015 Trade Policy Agenda can be found here: Presidents-Trade-Agenda_2.pdf DOC: U.S. Exports Support More Than 11.7 Million Jobs in 2014 Secretary Pritzker issued a report on Wednesday, titled Jobs Supported by Exports 2014: An Update, showing that U.S. goods and services exports supported more than 11.7 million jobs in March 9, NFTC Trade Matters Vol. 16 No. 10

4 Secretary Pritzker: Today s new data is further evidence that exports are creating jobs and strengthening our economy. We know that export-related jobs are good jobs, paying up to 18 percent more than non-export related positions. The full report can be found here: For more information, visit: Other News CSIS s Scott Miller Testifies Before House Foreign Affairs Subcommittee on Asia and the Pacific On Wednesday, Scott Miller, William M. Scholl Chair in International Business at the Center for Strategic and International Studies (CSIS), testified before the House Foreign Affairs Subcommittee on Asia and the Pacific on The Trans-Pacific Partnership: Prospects for Greater U.S. Trade. His testimony can be found here: More information on the hearing, including videos, can be found here: Tariff Tuesdays We encourage you to join with the Coalition for GSP in their Tariff Tuesdays initiative. The goal is to get as many companies as possible to contact their Senators and Representatives every Tuesday about GSP expiration costs to date and the need to renew GSP immediately. For more information, visit: Progressive Economy Trade Fact of the Week Click here to view this week s Trade Fact by Progressive Economy. Programs & Events of Interest The Philippine Market for Medical Devices and Services Wednesday, March 18, p.m. EDT In Case You Missed It A Deal Worth Getting Right Washington Post (Op-ed by Lawrence Summers, professor at and past president of Harvard University; former treasury secretary from 1999 to 2001; and former economic adviser to President Obama from 2009 through 2010) March 8, c42f-11e4-ad5c-3b8ce89f1b89_story.html Over the next few months, the question of U.S. participation in the Trans-Pacific Partnership trade deal is likely to be resolved one way or the other. It is, to put it mildly, a highly controversial issue. Proponents believe a deal is essential to both our economic and geopolitical interests; opponents fear that it will primarily benefit corporations and the wealthy at the expense of middle-class living standards. Delayed Trade Bill No Impediment to Pacific Deal: U.S. Official March 9, NFTC Trade Matters Vol. 16 No. 10

5 Reuters March 6, A delay in finalizing legislation to streamline the passage of trade deals through the U.S. Congress should not push back the timetable for completing a Pacific trade deal, a senior State Department official said on Friday. Under Secretary for Economic Growth, Energy, and the Environment Catherine Novelli said even if lawmakers do not vote on so-called fast track legislation until April, it will not stop negotiators from pressing ahead with the 12-nation Trans-Pacific Partnership (TPP). U.S. Trade Gap Narrows in January Wall Street Journal March 6, Cheaper U.S. energy prices and lower demand for foreign oil helped narrow the U.S. trade gap in January. The trade deficit shrank to a seasonally adjusted $41.75 billion in January, the Commerce Department said Friday, as crude imports fell and created the lowest deficit for petroleum products in over a decade. Ex-Fed Chairmen Call For Fast-Track Trade Bill The Hill March 5, Former Federal Reserve Chairmen Alan Greenspan and Ben Bernanke joined a group of bipartisan economic leaders on Thursday in urging congressional leaders to approve fast-track trade agreements. Expanded trade through these agreements will contribute to higher incomes and stronger productivity growth over time in both the United States and other countries, they wrote in the letter addressed to the leaders of the House and Senate. Fate of Obama s Trade Agenda May Rest on Oregon Senator New York Times March 4, When he s not legislating, Senator Jon Tester, a Democrat, is a wheat, barley and alfalfa farmer in Big Sandy, Mont. That makes him a good bet to support President Obama s trade agenda, which is generally backed by agriculture interests. But before he signs on to anything, Mr. Tester said Tuesday, he wants to see what Senator Ron Wyden of Oregon, the ranking Democrat on the Finance Committee, can come up with in arduous negotiations with Republicans. Calendar of Events Date March 11, 2015 March 19, 2015 March 25-26, 2015 April 15-16, 2015 April 29-May 1, 2015 May 1, 2015 July 8, 2015 May 6, 2015 May 19, 2015 June 16, 2015 Event and Location NFTC Tax Lunch Forum - Speaker: Ray Beeman Washington DC NFTC Board of Directors Meeting Washington DC Annual International Human Resources Conference - Houston, TX Expatriate Management Committee Meeting New York City (By Invitation) International Assignment Management Committee- Houston, TX (By Invitation) International Compensation & Benefits Committee Meeting - Houston, TX (By Invitation) International Benefits Committee New York City (By Invitation) March 9, NFTC Trade Matters Vol. 16 No. 10

6 June 17-18, 2015 September 21-23, 2015 October 20, 2015 October 22-23, 2015 November 4, 2015 Annual Strategic Global Workforce Management Forum New York City Expatriate Management Committee Meeting Phoenix, AZ (By Invitation) International Benefits Committee Meeting - New York City (By Invitation) NFTC Fall Tax Meeting Washington DC December 9, 2015 *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) or nftcinformation@nftc.org Links National Foreign Trade Council USA*Engage Global Innovation NFTC U.S.-Libya Business Association Office of the U.S. Trade Representative U.S. Department of Commerce U.S. Foreign Agricultural Service International Trade Administration Federal Trade Statistics U.S. Census U.S. Department of State U.S. Export Portal California Institute for Federal Policy Research California Chamber of Commerce Public Policy Institute of California CalTrade Report National District Export Council Commercial News USA 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 us at nftcinformation@nftc.org Thank you 2015 National Foreign Trade Council 1625 K Street, NW, Suite 200 Washington, DC Phone: (202) Fax: (202) nftcinformation@nftc.org Please follow us on: March 9, NFTC Trade Matters Vol. 16 No. 10