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Source: NC AGRIBUSINESS COUNCIL, 6/29/12
June 28, 2012
The Honorable Jacob Lew
Chief of Staff
The White House
1600 Pennsylvania Avenue, NW
Washington DC, 20500
Dear Mr. Lew:
We write to raise our collective concern regarding the unprecedented “Draft Tobacco Proposal” for the Trans-Pacific Partnership (TPP) negotiations. After briefings by USTR officials, we remain convinced that it is unwarranted and will have a seriously negative impact on the trading system as a whole and on U.S. trade policy leadership. As every U.S. Administration, including this one, has stated that nothing in our agreements inhibits the ability of the government to impose legitimate regulations in the public interest, we believe there is no need for this proposal to go forward.
U.S. trade agreements allow action inconsistent with the ordinary rules as long as certain conditions are met, and it is “necessary” to achieve a specified objective. Breaking with consistent U.S. practice, under this proposal action does not even need to be necessary to achieve a public health objective. The proposal would, in effect, give regulators license to adopt measures based on nothing more than the subjective belief that the measure could protect the public interest. The implications of such a radical change in U.S. policy are far reaching and not unlike an embrace of the “precautionary principle.” Such a change would invite attacks on the world trading system that has taken decades to build and that protects the interests of U.S. enterprises and workers. Moreover, once the United States opens the door, our trading partners
will insist, when they find it politically expedient, on safe harbors for regulations allegedly in pursuit of worthy objectives like public health, environmental protection or climate change amelioration that will harm U.S. exports, investment or intellectual property rights.
We have been told that this exception is needed to implement the 2009 Family Smoking Prevention and Tobacco Control Act, but USTR could not provide an example of a legitimate, non-discriminatory, science-based tobacco control measure pursuant to that Act that would not be upheld in a trade dispute under the current exceptions. Moreover, the Framework Convention on Tobacco Control recognizes that such measures must be “in accordance with international law,” which includes the WTO agreements and other trade agreements. Since the Administration does not plan to renegotiate any existing U.S. free trade agreements or the WTO agreements to insert this suddenly required exception, it is inexplicable and unjustifiable.
The international system of rules the United States has helped construct has served the U.S. economy and national security for decades. It has also not impeded the ability of the United States to regulate in the public interest. Given U.S. history as a champion of the international economic system, we want directly to emphasize our deep concern with this draft proposal which will, if put into the TPP negotiating process, harm U.S. agriculture and business. We urge that the proposal not go forward and would welcome the opportunity to meet with you to discuss this further.
Sincerely,
Bob Stallman Calman J. Cohen
President President
American Farm Bureau Federation Emergency Committee for American Trade
William A. Reinsch Jay Timmons
President President and CEO
National Foreign Trade Council National Association of Manufacturers
Thomas J. Donohue Peter M. Robinson
President and CEO President
U.S. Chamber of Commerce U.S. Council for International Business
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