President's Export Council Recommends IPR and Tax Reforms, Etc.

More Resources, Stronger Rules for IPR Enforcement

The PEC made the following recommendations regarding the protection U.S. exporter intellectual property rights:

• Continue to empower IPR Enforcement Coordinator. Work with Congress to be sure the IPR Enforcement Coordinator has adequate resources;
• Ensure the government negotiates and implements bilateral and multilateral trade agreements with strong IPR enforcement provisions;
• Work to shut down overseas web sites that sell counterfeit goods and facilitate digital theft; and
• Ensure IPR attaché programs within executive agencies (such as the Patent and Trademark Office, Department of Justice, and Department of Homeland Security) are robust and coordinated. Work with Congress to expand these programs into additional countries abroad.

China’s recent IPR enforcement campaign. U.S. Trade Representative Kirk noted that China has launched a six month campaign to highlight the importance of enforcement of IPR. USTR Kirk suggested that exporters emphasize to their Chinese suppliers that the U.S. doesn’t need a “campaign,” it needs systematic enforcement.

(See ITT’s Online Archives or 12/08/10 news, 10120815, for BP summary of China’s overview of its campaign against IPR infringement and counterfeits.)

Reduced Tax Rates, Permanent Tax Credits to Stimulate Investment

The PEC also adopted recommendations on tax reform, including:

• Reduce the combined corporate tax rate to the Organization for Economic Cooperation and Development (OECD) level. (The PEC notes that the current U.s. tax rate is substantially above that of the OECD);
• Enact a permanent R&D credit that is competitive with the OECD; and
• Create additional tax incentives for investment and make temporary tax incentives permanent.

According to the PEC, the President’s recently announced tax compromise to extend the expiring tax cuts, etc. represents a beginning step on some of the tax recommendations (e.g., R&D tax credit, investment incentives). The PEC urges that these provisions be made permanent.

Improve Government Collection of Data on Exports of Services

The PEC also made recommendations on how the government could improve its collection of data on services exports. The PEC recommended that:

• Resources be reallocated or increased to the Bureau of Economic Analysis to improve its ability to cover services in its quarterly surveys and collect more data on services; and
• Data sharing between key statistical agencies and the addition of more categories of companies surveyed should be allowed in order to correct the chronic underreporting of exports of services. PEC notes that this recommendation would require a statute change.

Other Countries’ Export Successes Should be Benchmarked

The PEC made recommendations on benchmarking the export success of other industrialized countries (such as Germany) in order to see what the U.S. can learn and apply. PEC recommends that:

• A six month study should be conducted on what other successful countries are doing. The study should be made publicly available and include a cost analysis and recommendations.

Some of the PEC members thought that making this study publicly available might help build public support for various export initiatives.

U.S. Should Support Russia’s Accession to WTO

The PEC also recommended that the U.S. support Russia’s accession to the World Trade Organization in 2011.

USTR Kirk noted that the U.S. has made progress in resolving its outstanding issues with Russia and is committed to working with Russia to help it resolve any other outstanding WTO accession issues.

President Discusses KORUS FTA Agreement, Export Control Reform Initiatives

President Obama addressed the PEC at the December 9, 2010 meeting. In his remarks, the President discussed his recent agreement between the U.S. and Korea on the U.S.-Korea Free Trade Agreement (KORUS FTA).

The President also discussed recent export control reform deliverables, including the availability of a consolidated “restricted” parties export screening file for downloading.

(See ITT’s Online Archives or 12/10/10 news, 10121018, for BP summary of the President’s announcement of the consolidated screening list with links to BP summaries of other export control reform deliverables.)

(See ITT’s Online Archives or 09/17/10 and 10/18/10 news, 10091713 and 10101819, for BP summaries of the recommendations made at the September 16, 2010 meeting.)

President’s remarks to PEC available here.