Summary: ECAT Positions on the Issues
The following paragraphs provide a summary of ECAT’s positions on the major trade, investment, and tax issues likely to be of greatest concern to ECAT member companies.
Section 2: The U.S.-Central America-Dominican Republic Free Trade Agreement (CAFTA)
U.S. Approval and Implementation of CAFTA: ECAT strongly supports Congress’ implementation of the CAFTA. It is a comprehensive, high standard and commercially meaningful agreement with the United States’ 12th largest export market. In addition to eliminating barriers and creating significant new economic opportunities for U.S. manufacturers, service providers and farmers, the CAFTA is also critical to promote economic development and improved working conditions in a region where nearly half of the population lives in poverty. It is also vital to support stability and strengthened democracy in a region that was characterized not that long ago by communist insurgencies, military dictators and instability. CAFTA is the next step in the United States’ 20-year bipartisan policy of economic engagement. ECAT urges its implementation as soon as possible.
Section 3: World Trade Organization
Five-Year Review of U.S. Participation in the WTO: ECAT strongly supports continued U.S. participation and leadership in the WTO to further promote economic growth and opportunities for U.S. farmers, manufacturers, service providers and their workers, as well as to promote growth and opportunities for peoples around the world.
Doha Development Agenda: ECAT strongly supports the Doha Development Agenda agreed to by the WTO in November 2001. ECAT supports comprehensive negotiations on agriculture, services, industrial tariffs and other issues to expand market-access opportunities and reduce and ultimately eliminate barriers across all sectors. ECAT also supports efforts to ensure that WTO provisions are developed and applied in a manner that eliminates barriers to and supports the growth of information technology and digitally delivered goods and services. In particular, ECAT supports:
Implementation of WTO Agreements: Full implementation of WTO agreements is the cornerstone of the multilateral trading system and must remain a top priority on the WTO agenda. The United States should continue to insist that all WTO Members implement the WTO Agreements in a timely and comprehensive manner. Technical assistance and assistance for capacity-building are important tools to help advance the United States’ implementation goals. Developing country concerns regarding implementation should be addressed through increased technical assistance and not become the pretext for renegotiating existing WTO agreements. ECAT urges the Administration to oppose efforts to reopen the TRIPS, TRIMS, or other agreements or to delay full implementation of these agreements.
WTO Institutional Reforms: ECAT supports efforts to expand participation by WTO Members in the WTO process and to increase overall transparency in the WTO, as well as transparency in the dispute settlement process.
WTO Accessions: ECAT supports the timely accession of Russia and other major countries to the WTO on commercially meaningful terms that are, at a minimum, comparable to those agreed to with China and other WTO members, if not improved in key areas.
Status of WTO Committees and Working Parties: ECAT supports efforts to make the WTO more transparent and to conclude work on the rules of origin harmonization in a timely manner.
Dispute Settlement: ECAT believes that the WTO dispute settlement mechanism has been effective in resolving many disputes, but has had difficulty in addressing a few highly political disputes, particularly those between the United States and EU. ECAT supports efforts by the United States and EU to address these issues quickly and in a trade-liberalizing manner. ECAT does not believe that the formation of a body to review WTO decisions adverse to the United States is either necessary or appropriate. If established, any such mechanism should require a review of all relevant cases, not just those adverse to the United States, include only members who are impartial and are experts in trade and international law, and provide a thorough, objective and non-political review of WTO cases.
Section 4: Major Trade Negotiations and Agreements
Renewal of Trade Promotion Authority: ECAT strongly supports the renewal of TPA authority for an additional two years to enable the United States to continue to pursue the completion of the Doha Development Agenda and comprehensive and commercially meaningful FTA agreements.
U.S.-Bahrain FTA: ECAT supports Congress’ implementation of the U.S.-Bahrain FTA.
U.S.-Colombian and Andean Pact FTA Negotiations: ECAT supports the timely completion and implementation of a comprehensive, high standard and commercially meaningful U.S.-Colombia and U.S.-Andean FTA that will liberalize trade and investment. ECAT strongly urges that the Administration reject efforts to carve-out particular sectors. ECAT strongly urges the Administration to include high standard investment protections, similar to those included in many respects in the U.S.-Uruguay BIT, and the high standard intellectual property standards included in recent FTAs. ECAT also urges the Administration to ensure that existing government commitments are upheld, particularly regarding investment, so that negotiations are not delayed. ECAT strongly supports the market-opening opportunities presented by the U.S.-Australia FTA, but remains concerned by its deviation from other recently concluded FTAs in certain key areas.
U.S.-Panama FTA Negotiations: ECAT supports the timely completion and implementation of a comprehensive, high-standard and commercially meaningful U.S.-Panama FTA that will liberalize trade and investment. ECAT strongly urges that the investment protections already accorded to U.S. investors under the U.S.-Panama BIT not be reduced in any new commitments made as part of the FTA.
U.S.-Thailand FTA Negotiations: ECAT supports the timely completion and implementation of a comprehensive, high-standard and commercially meaningful U.S.-Thailand FTA that will liberalize trade and investment and strengthen the level of intellectual property and investment protection.
U.S.-Oman FTA Negotiations: ECAT supports the timely completion and implementation of a comprehensive, high-standard and commercially meaningful U.S.-Oman FTA that will liberalize trade and investment.
U.S.-UAE FTA Negotiations: ECAT supports the timely completion and implementation of a comprehensive, high-standard and commercially meaningful U.S.-UAE FTA that will liberalize trade and investment.
U.S.-SACU FTA Negotiations: ECAT supports the completion and implementation of a comprehensive, high standard and commercially meaningful U.S.-SACU FTA that will liberalize trade and investment.
Free Trade Area of the Americas Negotiations: ECAT supports significant progress in eliminating barriers to agriculture, goods and services trade and developing strong, comprehensive protections with respect to investment and intellectual property rights that will promote economic growth and development and the rule of law throughout the Western Hemisphere.
Section 5: Major Trade Policy Issues
Building a Consensus on Trade and Investment Liberalization: Building a Consensus on Trade and Investment Liberalization
U.S.-Australia FTA: ECAT strongly supports the market-opening opportunities presented by the U.S.-Australia FTA, but remains concerned by its deviation from other recently concluded FTAs in certain key areas.
U.S.-Morocco FTA: ECAT supported Congress’ implementation of the U.S.-Morocco FTA and supports its full implementation once it enters into force.
China Currency Legislation: ECAT strongly opposes S. 295 and similar legislation that seeks to force a precipitate change in China’s currency policy and would authorize WTO-violative unilateral tariff measures that will undermine the U.S.-China relationship and potentially impose billions of dollars on U.S. exports to China on an annual basis.
Trade Preference Proposals: ECAT welcomes legislation to expand trade and investment opportunities for U.S. farmers, manufacturers, service providers and their workers throughout the world and that will help promote economic development in the developing world.
Global Outsourcing: With economic justification in study-after-study, ECAT strongly supports the global engagement of U.S. companies as a critical component to promoting economic growth and high living standards at home. Legislative proposals at the state or Federal level to restrict global engagement will undermine the strength of U.S. companies and the capacity of the U.S. economy to produce better, high-paying jobs in the United States. Legislation that will help educate America’s youth, help train and retrain its workers and provide adjustment assistance will do more to create the labor force that the United States needs to compete globally.
Temporary Entry Issues: ECAT strongly urges U.S. trade negotiators, Members of Congress and the business community to expand their efforts to resolve the longstanding stalemate in the treatment of temporary entry in trade and investment negotiations. The existing moratorium on the inclusion of temporary entry provisions in trade and investment agreements undermines the competitiveness of U.S. companies and the ability of U.S. negotiators to secure the elimination of other countries’ barriers to services and investment
Addressing Concerns About Trade and Investment Liberalization: Continued global trade expansion is the bedrock of progress in achieving greater international observance of high labor and environmental standards and in promoting better access to food and health care. Progress on the human side of trade requires that the United States continue its leadership in the multilateral trading system promoting a strong set of WTO rules based on the right of member countries to set and enforce high environmental, labor, or other domestic standards. Before rushing to adopt trade-oriented solutions that may not be effective, it is critical that policymakers first work to define the United States’ objectives in each of these areas, and then determine how those objectives can best be achieved. Many of these issues may be better addressed directly through separate agendas in organizations with technical expertise, rather than as add-ons to the trade agenda. And, in those cases where complementarity between U.S. trade and other U.S. objectives exists, efforts should be made to address these objectives jointly and in a cooperative manner.
Trade Remedy Law Issues: It is vitally important that both U.S. unfair trade laws and Section 201 maintain – in both the legal provisions and their application – a careful balance between the interests of the petitioning industry and the interests of other U.S. industries and consumers. It is critical that the Congress and the Administration oppose any efforts to impose import restraints or amend U.S. antidumping, countervailing duty, or safeguards laws in ways that would invite foreign retaliation, encourage restrictive foreign mirror legislation, and/or violate the United States’ international trade commitments.
Restructuring and Modernization of U.S. Customs Service: ECAT is committed to working with the Customs Service, the Department of Homeland Security and the Department of the Treasury to help ensure that Customs’ restructuring progresses in a manner that fulfills our national security and enforcement goals, while also facilitating the flow of legitimate commercial trade that provides enormous economic benefits to the United States. ECAT strongly supports full funding of the Automated Commercial Environment (ACE) from general revenues. ECAT also strongly supports improvements in the operation of the Customs Service, including through full and improved implementation of the Customs Modernization Act and the Customs Procedural Reform and Simplification Act of 1978 in a manner that facilitates trade.
Reform of Trade Adjustment Assistance and Worker Retraining Programs: ECAT recognizes that while expanding U.S. international trade and investment raises the U.S. standard of living overall, dislocations occur and must be addressed through public and private worker retraining and assistance programs. ECAT supports efforts to implement the trade adjustment assistance provisions of the Trade Act of 2002 and to continue to review the effectiveness of these programs and other proposals in addressing the needs of today’s workers.
Section 6: Investment
U.S. Negotiating Position on Investment: ECAT believes that U.S. trade and international tax policies should recognize the vital importance of U.S. foreign direct investment to U.S. economic growth and should promote the expansion of U.S. trade and investment. ECAT supports, therefore, a strong U.S. negotiating position on investment that promotes market access and investment protections for the benefit of U.S. companies, workers and their families and the U.S. economy. ECAT recognizes that Congress’ objectives on investment negotiations in the Trade Act of 2002 have been substantially incorporated into new agreements, although ECAT strongly believes that these objectives could more effectively be implemented through provisions providing stronger protections for U.S. investment abroad, particularly with respect to fair and equitable treatment, full protection and security, compensation for expropriation (including with respect to all forms of property recognized in the United States, including contract rights) and full access to arbitration for U.S. financial services institutions, for breaches of existing and future investment agreements and for all U.S. investors with respect to financial services measures. The United States should also refrain from weakening existing agreements or undermining protections already provided in existing Bilateral Investment Treaties through the negotiation of new free trade agreement and instead ensure that the FTAs reflect the high standard commitments discussed above.
Antibribery Initiatives: ECAT supports U.S. efforts to ensure that the OECD Convention on Combating Bribery of Foreign Public Officials and the Inter-American Convention on Corruption are effectively implemented and to combat the problem of foreign corruption through other international efforts.
Section 7: The European Union
U.S.-EU Relations: ECAT supports efforts by the United States and the EU to strengthen their economic relationship, address ongoing trade disputes that have undermined the historically close U.S.-EU relationship, and move forward with mutually supportive trade initiatives in 2005. In 2005, ECAT also urges the Administration to strengthen its efforts to address concerns that the EU’s enlargement will result in diminished market opportunities for U.S. farmers, manufacturers, service providers and their workers in the 10 newly acceded countries. As well, ECAT urges continued work to address U.S. concerns on various policies and other initiatives that undermine or have the potential to undermine access by U.S. companies into the EU or U.S. competitiveness globally, including with respect to agriculture, European aircraft subsidies, REACH, and privacy.
Section 8: Sanctions Reform
Sanctions Reform: ECAT believes that sanctions that do not have multilateral support are generally ineffective and counterproductive. ECAT supports the deliberative and disciplined framework for consideration of unilateral sanctions set out in the sanctions process reform legislation. ECAT supports efforts to try to normalize trade relations with Iran, while efforts continue to address important national security concerns. ECAT welcomes the Administration’s decision to lift sanctions on Libya. ECAT also supports further efforts to exempt agricultural, medical and other products from unilateral sanctions. ECAT supports efforts to terminate existing unilateral sanctions, particularly those with respect to Cuba.
Section 9: Export Promotion and Financing
Export Promotion and Financing: ECAT supports full funding for the Ex-Im Bank and OPIC, which help support the competitiveness of U.S. companies. ECAT also supports full funding for the Trade and Development Agency, which provides important project funding and trade technical assistance to developing countries in a manner that helps support U.S. exports. ECAT also supports full funding for the multilateral development banks and development funds, as well as efforts to use these organizations to address human capital issues, including health, labor and environmental matters.
Section 10: Export Controls
Export Controls: ECAT supports efforts to liberalize controls on encryption products and urges the Administration and Congress to repeal the 1998 National Defense Authorization Act requirements related to computers and the MTOPS methodology for imposing controls on high performance computers and give the President the flexibility to develop effective controls in this area, as he has in all other product categories. In the short term, the Administration should continue to expedite upward adjustments in the current MTOPS threshold in line with technological advances.
Section 11: Regional Trade Arrangements and Country-Specific Issues
Caribbean Basin Issues: ECAT supports U.S. efforts to promote greater economic reform and growth in the Caribbean Basin. In particular, ECAT supports full implementation of the Caribbean Basin Trade Partnership Act in a manner that will promote greater U.S. trade with the Caribbean Basin. ECAT remains concerned that the U.S. Customs Service is interpreting the CBTPA in a manner that is not consistent with the legislative intent of the Act. More critically, ECAT urges Congressional implementation as soon as possible of the U.S.-Central America-Dominican Republic FTA (CAFTA) which includes new, simpler and permanent rules that are critical to promote the competitiveness of U.S., Central American and Dominican Republic partnerships.
Andean Trade Partnership and Drug Eradication Act: ECAT supports full implementation of the Andean Trade Promotion and Drug Eradication Act in a manner that fosters greater trade and investment between the United States and the Andean countries and supports greater economic growth and opportunities for the Andean countries. As discussed in section 4, ECAT also supports the negotiation of a comprehensive and commercially meaningful Andean FTA that ensures high standards of protection for U.S. investors. ECAT is increasingly concerned, however, that the Ecuadorian government is failing to live up to its existing investment obligations in a manner that jeopardizes its trading relationship with the United States.
Asia-Pacific Economic Cooperation Forum: ECAT supports the APEC forum as a vital part of expanding trade and investment in the Asia-Pacific region. ECAT supports ongoing efforts to promote trade and investment liberalization and trade facilitation, as well as APEC’s transparency programs. ECAT strongly supports concrete work within APEC to implement many of APEC’s principles, including with regards investment, infrastructure and energy issues. ECAT also supports work to implement the APEC Privacy Framework to achieve a streamlined approach to the recognition of cross-border privacy codes.
China: ECAT supports the full implementation of China’s WTO commitments and other constructive reforms to promote the rule of law and level the playing field for U.S. companies. Of particular importance to ECAT companies are the following issues in the U.S.-China commercial relationship: (1) distribution rights; (2) intellectual property rights; (3) government procurement; (4) industrial policy; (5) burdensome and opaque customs, entry, licensing, regulatory and other requirements; (6) uneven and inadequate transparency; and (7) discriminatory taxation.
Russia: ECAT supports continued efforts to promote the rule of law, greater transparency and accountability in the Russian government, as well as to address issues of specific concern in the U.S-Russia commercial relationship, including the protection of intellectual property rights; financial service barriers, foreign investment barriers particularly in the natural resource sector, and agricultural barriers.
Section 12: Intellectual Property
Intellectual Property: ECAT supports the strong intellectual property commitments included in recent free trade agreements and the negotiation of similar protections in future free trade agreements. ECAT also supports U.S. efforts to secure full implementation of the TRIPS Agreement by insisting on adherence to existing transition deadlines, opposing any moratorium on dispute settlement cases, and making aggressive use of WTO dispute settlement procedures to enforce the agreement. ECAT urges the Administration to make every effort to encourage additional countries to ratify and implement fully the WIPO Patent Cooperation Treaty and the WIPO Internet treaties and to continue to promote strong intellectual property protection for digitized trade. ECAT supports efforts to combat piracy of optical-media products through effective enforcement and regulation, and to combat end-user software piracy, particularly by foreign governments. ECAT also supports continued effort to promote increased cooperation and harmonization among between patent offices.
Section 13: Taxation of Foreign Source Income
Taxation of Foreign Source Income: ECAT strongly supports continued efforts to reform and simplify the international provisions of the U.S. tax code that currently undermine the global competitiveness of U.S. companies. ECAT welcomes enactment of the American Jobs Creation Act to resolve our longstanding dispute with the EU over U.S. taxation of foreign source income. ECAT also strongly supports the bilateral tax treaty program that promotes greater certainty, the avoidance of double taxation and the prevention of discriminatory treatment against U.S. companies. ECAT also supports efforts to update the U.S. Model Tax Treaty to include the complete exemption from withholding taxes on dividends received as reflected in more recent bilateral treaties.
About ECAT | Hot Issues | ECAT Positions
Press Releases | Trade Resources | Key Trade Votes | Publications
Steel | CAFTA | Search | Members Only
Copyright 1999-2002, the Emergency Committee for American Trade
