The Border Adjustment Tax on Coffee: Unintended Consequences?

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By William (Bill) Murray, CEO, NCA
@Bill_CoffeeAssn

The 2016 U.S. presidential election provoked deep passions across the U.S. that continue to be felt today, as the policy implications continue to unfold.

Last December, we took a first look at how coffee-related policies might be impacted by the election, while conceding that there was much yet to be discovered about the new administration.

Among the various initiatives under discussion by the new administration, a “border adjustment tax” potentially has huge implications not only for the coffee sector, but for every coffee drinker in the U.S. – more than 180 million Americans.

Most ironically, in the case of coffee a “border adjustment tax” could raise the price of everyone’s daily coffee, while not having the intended effect of “bringing jobs to America.”

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How a New Administration May Impact the Coffee Industry

By Joseph DeRupo, Director of External Relations, NCA

 The following is an excerpt from a recent NCA Member Alert. (Want to receive the latest industry updates directly? Learn more about NCA membership.)

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After a deeply divisive campaign, a new administration is poised to assume power in Washington, having been elected on a platform which has expressed skepticism toward big government and regulatory intervention.

The transfer of power has only just begun, cabinet and agency appointments are a still in progress, and budget negotiations are far off – including the implications of funding cutbacks or additions.

In the meantime, we’re preparing for the changes that may be ahead. Earlier this year, the NCA released the first-ever Economic Impact Study to measure the U.S. coffee economy, and the NCA’s 2017 plan already includes outreach in Washington to raise awareness of the industry’s importance. That outreach will now take on even greater significance as the coming months unfold.

The NCA will not speculate as to what these changes in Washington may mean for coffee. But it’s never too soon to begin planning, and here are some key issues on the industry’s docket:

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Coffee Is Part of a Healthy Diet, Says Science

via Flickr

via Flickr

[NCA Member Alert] Years of positive scientific evidence on coffee and health just cut through the cluttered media landscape in a prominent and powerful way. A panel of scientists charged with scouring the literature to study how Americans can eat healthy acknowledged that 3 – 5 cups of coffee a day have a place in a healthy diet.

According to the final report issued by the Dietary Guidelines for Americans Committee (DGAC), “moderate coffee consumption can be incorporated into a healthy dietary pattern, along with other healthful behaviors.”

What does this mean for the coffee industry? Read the full article here.

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