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The following story is from the October 29 issue of International Trade Reporter
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White House Responds to Letter
From ITAC Chairs Blasting Lobbying Ban

President Obama's top ethics adviser Oct. 21 offered a tough response to a group protesting recent administration moves to eject registered lobbyists from advisory committees counseling government officials on trade policy and other issues.

Norm Eisen, special counsel to the president for ethics and government reform, responded in a letter to the group, which included chairs of all 16 Industry Trade Advisory Committees (ITACs) that advise the Commerce Department and the Office of the U.S. Trade Representative.

Eisen said Obama remains determined to limit the “inordinate influence of lobbyists.”

Eisen was responding to an Oct. 19 letter from the ITAC chairs to Obama, protesting the administration's Sept. 23 decision to bar registered lobbyists from federal boards and commissions (26 ITR 1276, 9/24/09).

Eisen dismissed suggestions from the ITAC chairs that the administration decision was provoked by the “criminal and unethical behavior of a few individuals,” saying that the “system as a whole” concerns the White House. He characterized it as an “indisputable fact” that lobbyists for major special interests in recent years have wielded extraordinary power and said this resulted in a skewed national agenda favoring those who can afford their services.

“The President's overarching goal is to reduce special interest influences that threaten the public interest and undermine public confidence. And his concerns extend to the appointment or retention of those who lobby the government and simultaneously serve on federal boards and commissions,” Eisen said.

Eisen conceded that many of the 130 lobbyists who serve on the ITACs bring “great knowledge” to those panels. But he said that lobbyist participation also puts such individuals in a position to influence trade policy on behalf of their individual clients.

Eisen Dismisses Argument of Special Expertise

Arguments that only lobbyists can bring the requisite experience to the panels are unconvincing on their face, he said. The committees will benefit from an influx of businesspeople, consumers, and other concerned Americans “who can bring fresh perspectives and new insights to the work of government.”

Last, Eisen said that suggestions that some lobbyists would de-register to stay on the panels is “disturbing,” expressing the hope that industry representatives would not seek to circumvent the rules to keep their positions on the panels.

The Lobbying Disclosure Act treats individuals as registered lobbyists and requires regular disclosure of their activities if certain thresholds are reached, such as if the individual spends at least 20 percent of his or her work time on lobbying activities.

According to a USTR fact sheet, the ITACs, which are jointly administered by USTR and the Commerce Department, are an “integral link” between industry and the U.S. government, providing a public-private forum to ensure industry has a voice in formulating the trade policy of the United States. The 16 ITACs reflect manufacturing and services sectors of the U.S. economy, as well as issue-oriented matters that cut across all sectors.

Signatories on the letter to Obama included Stephen Lamar, executive vice president of the American Apparel & Footwear Association who chairs the Industry Trade Advisory Committee on Textiles and Clothing, and Eric Smith, president of the International Intellectual Property Alliance, who chairs the Industry Trade Advisory Committee on Intellectual Property Rights. The signatories said they were writing the letter in their individual capacity but drawing upon experience as chairs of the ITACs.

Letter Questions New Policy

In the Oct. 19 letter, the ITAC chairs told the president that they backed increased transparency and public participation in trade policy formulation.

Members' appointments to the ITACs will expire on Feb. 17, 2010. The trade advisory committee system consists of 28 advisory committees, with a total membership of approximately 700 citizen advisers, according to the USTR information sheet.

“However, we believe these new restrictions on the participation of registered lobbyists on Advisory Committees will severely undercut those goals and result in a policy making process that is less transparent and devoid of much of the expertise that U.S. Government negotiators need to achieve a balanced trade agenda,” the letter said.

The ITAC chairs urged that the new policy not be adopted and requested a meeting to discuss the issue and develop an approach advancing “our shared goals of greater transparency and public participation in the formation of trade policy.”

Eisen said he would be happy to meet to discuss the matter but that the president remained determined to limit lobbyist influence.

Letters to Top Administration Officials

In separate letters to U.S. Trade Representative Ron Kirk and Commerce Secretary Gary Locke, the ITAC chairs Oct. 19 expressed “very strong opposition” to the recently announced policy that will remove registered lobbyists from trade advisory committees. Copies of the letters were also sent to the president.

The letters to Kirk and Locke asked them to use their knowledge of the advisory committee system to register opposition to the announced policy and to seek to have it changed.

“Our comments reflect the sentiments shared by hundreds of advisors—both those who are registered as lobbyists and those who are not—from across the Advisory Committee system,” the letter said. Some of these individuals, who have undergone security clearances and participate at their own time and expense, have participated in the advisory committee system since it was created in the 1970s, the letter said.

The letter stressed “in the strongest possible terms” that the action will severely hamper the advisory committee process, the level of advice that the ITACs provide, and the U.S. ability to achieve balanced and effective trade policies.

The chairs warned that the action contemplates the immediate removal of individuals with considerable institutional expertise and substantive knowledge in all areas of trade policy negotiation, policy development, and enforcement.

“A quick review of the impact of this new policy suggests that dozens of the most active—and most knowledgeable—Committee members who generate many of the documents needed by the Committee and our trade negotiators will be dismissed once the new charter term begins,” the letter said.

Individuals who specialize in trade policy matters in their sectors often find that such specialization pushes them above the 20 percent lobbying activity threshold triggering registration under the Lobbying Disclosure Act. As a result, characteristics making many advisers valuable to the administration would also disqualify them from ITAC participation, the ITAC chairs warned.

Sudden Ejection

Further, “sudden ejection” of some 130 members from the ITACs will “depopulate many of the committees and instantly remove many voices from around the table.”

The new policy will diminish—not enhance—the participation and diversity of the committees, the letter said. “We fail to see how removing hundreds of individuals from service on these Committees, and suddenly disenfranchising the thousands of voices these individuals represent, will help broaden and diversify stakeholder participation on these Committees,” the letter said.

The broader goals of transparency with respect to lobbying, which are the hallmarks of the advisory committee process, will also be undermined by the new policy, the chairs wrote. “By definition, this action will remove from the advisory process the only advisors who disclose their advocacy activities. This means the public will have less access to information about the interests, entities, and individuals who are involved in the Committees,” the letter said.

From a policy perspective, the letter also expressed deep concern that the policy was announced without consultation with the individuals who are affected. “This is particularly troublesome since the principal function of these Committees is to act as advisory bodies, yet the advice of these groups was not even sought,” the letter said.

By Rossella Brevetti

The White House response as well as the ITAC chairs' letter is posted on the White House Internet site at http://www.whitehouse.gov

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