Lobbying by Foreign Governments Increasingly Requires Services of Law Firms by Alan B. Nichols On a day like any other, Wiley, Rein & Fielding, a full-service law firm with offices in Washington, D.C., and Northern Virginia, got a phone call from the senior official of a foreign government. The official explained that his country wanted to participate in an international economic organization of which the United States is an influential member. The foreign government was seeking the firmís help in gaining U.S. support for achieving membership status in the organization. The firm agreed to take the foreign government on as a client, offering no guarantees but assuring the government that it would do everything within its power and the limits of the law to help the country achieve its objectives. This scenario is played out over and over at Washington law firms, particularly those with strong reputations for international trade practices and government affairs expertise. Foreign governments frequently need the help of firms such as Wiley, Rein & Fielding; Patton Boggs; Arnold & Porter and others to help them articulate their views on key international issues to U.S. policymakers. In Americaís early years, when politics was played out in smoke-filled rooms by suited politicians, interest-group advocates would wait in the lobbies of Congress, hoping to buttonhole a lawmaker as he came out of his office. Today, lobbying has morphed into government relations, a highly sophisticated craft requiring a deft sense of timing, expert communications skills, and a thorough understanding of government. The machinery of the U.S. government is extremely complex and is supported by a political culture that at times can seem baffling to some foreign governments. In the case of the government that called Wiley, Rein, & Fielding, Charles Verrill, chairman of the firmís international trade practice, explained how Wiley helped its client. "The first thing we did was sit down with the client and become intimately familiar with the facts," he said. "It is critical when representing any client that you know what the clientís position is on an issue and why he holds it. After that, we prepared a white paper, one-page talking points and other documentation to support the position. "A lot of time is spent strategizing with the client and producing a workable game plan," Verrill continued. "Beyond articulating the clientís position, the plan identifies who the key U.S. officials are and who will represent the client in meetings with those officials." Then comes the framing of the message. "Some governments donít know how to gain the attention of U.S. policymakers. We provide a vital service by developing the right arguments," Verrill said. "How you frame an argument is vital to our success, and it requires a thorough understanding of our political system." Ray Calamaro thoroughly understands that system. He worked in Brussels on international trade matters, is a former deputy assistant attorney general for legislative affairs, and was the legislative director for a U.S. senator. Now, he is a partner and senior member of the international trade and legislative group at Hogan & Hartson, Washingtonís oldest and largest law firm. The firm has a "substantial" government and regulatory practice, with specialties that include medical devices, telecom, food and drug, international trade, education, labor, the environment, energy and agriculture. Each of these regulatory practice areas has a public advocacy component. Both international and domestic clients seek the firmís help in shaping and presenting their positions on public policy. As a case study, Calamaro offered the example of titanium, an extremely strong, lightweight material used in aircraft, including military aircraft. As a strategically vital material in U.S. defense procurement, titanium is subject to laws designed to ensure that the U.S. government has an ample and dependable supply of high-quality titanium for its defense needs. Calamaro explained that some international titanium suppliers oppose these laws because they give preference to U.S. suppliers. Conversely, U.S. companies have a vital interest in preserving this policy of domestic preferenceóknown as the Berry Amendmentófor the procurement of strategic materials such as titanium to ensure that the United States never becomes dependent on foreign sources for a vital material. As for lobbying on behalf of domestic titanium suppliers, Calamaro said, "Our firm works to ensure that efforts to undermine this law are not successful and to ensure proper oversight and enforcement of the law. We also work to improve it." Trade issues are equally vital to Hoganís international clients, which include foreign governments and non-U.S. companies that do business in this country. "We often have to advise a foreign client regarding the U.S. system. For some of our overseas clients who are not familiar with U.S. policymaking, it is crucial to have a strategy of approaching U.S. officials that is based on an understanding of the U.S. system," said Calamaro, who has personally represented numerous foreign businesses and governments, including Japan and a Chinese provincial government. "A large part of our work on behalf of foreign governments, therefore, is to educate them about the American system of laws and regulations, and to help them redefine their goals within that system. "Foreign governments have to be particularly sensitive on policy issues affecting U.S. national security or defense-related matters," he added. "While we help them frame their message to U.S. lawmakers and regulators, we have to be careful so that our clients are not perceived as meddling in U.S. domestic policymaking." Calamaro said representing non-U.S. clients, and especially foreign governments, on policy advocacy is in many ways very similar to representing U.S. clients, but there are some important differences: "U.S. clients usually know what they want to accomplish. Foreign governments often need guidance on defining a goal that will serve their interest without creating difficulties. Foreign governments must be aware of U.S. policy and areas of particular sensitivity." For example, he said, if a country believes the United States should take a certain action vis-?-vis that country, it is appropriate for that country to say so, but there comes a point where the country would be better served by going through diplomatic channels as opposed to lobbying. "When I advocate on behalf of a foreign client, I assure my clients that they should try to find common ground with the U.S. government," Calamaro explained. "When Congress considers a bill that could affect my overseas clients, I suggest to them that where possible, their position would be strengthened if what they want is consistent with key U.S. interests. It is in the interest of a foreign government to be on the same side as our government, where possible. U.S. lawmakers will be more inclined to listen to them if their views our consistent with those of the U.S. government." Calamaro concluded, "I work to build bridges between my clients and the U.S. government. I meet with officials at various levels of government, explain that I am representing a foreign client, and I try to see where the common ground is on an issue. If there is no common ground, at least I have conveyed my clientís position. I also do the same when calling on congressmen. I have found over the years there are effective and non-effective ways to disagree." Mark Cowan, a partner at Patton Boggs, oversees the firmís business development. Patton Boggs has foreign clients from all parts of the world and currently represents some 18 governments. According to Cowan, international trade is a major issue for these governments. Within the field of international trade, governments seek advocacy services with respect to such factors as anti-dumping laws, marketing, taxes and tariffs and other aspects of international trade. Educating international clients on the intricacies of U.S. tax, trade and tariff regulations is a key element of these services. Patton Boggs also helps overseas businesses gain access to U.S. markets, sometimes advising them to partner with a U.S. business already established in an industry. This is particularly true of the security market, with its high demand for armoring materials, eye-recognition technology and explosive-proof products. In some cases, an overseas client may want to establish a manufacturing facility in the United States. If research by the firm discloses that a particular state, because of its favorable tax laws or economic incentives, is well suited to house the facility, the firm might handle the negotiations with that stateís officials. And if the foreign company wants to establish a subsidiary in the United State s, the firm might do the legal work to incorporate it into this country. Work on behalf of foreign governments often centers on financial or economic development-related issues. For instance, the country may seek to improve its political or financial relationship with the U.S. government, or it may seek product guarantees with the Import-Export Bank, or greater status within the International Monetary Fund. "When we talk to a government, either a foreign government or officials in the U.S. government, it is usually about a whole basket of issues," said Cowan. "Rarely, if ever, do we represent a foreign client on a single issue. Regardless of the issue, we sit down with our clients and work out a game plan, and we figure out which agencies and people we need to talk to. When we engage in sovereign representation, typically we work with a countryís ambassador," he noted. "The U.S. government is so complicated that representation on important issues is essential to our clients, especially our overseas clients," Cowan added. "What are the relevant laws or policies affecting our clients? What federal programs might be involved? How do we best get the clientís message across? A lot of people are seeking the ear of decision-makers, so finding the right answers to questions is essential." Although Arnold & Porter has expertise in a broad number of policy-related areas, when it comes to representing foreign governments, the Washington firm is particularly active in the arena of international finance. According to senior partner Jeffrey Smith, it is a matter of U.S. policy to provide debt relief to countries, particularly in the developing world. If a country cannot repay its loan to the World Bank, of which the United States is the largest donor, Arnold & Porter will help to restructure that countryís debt to the bank. The strategy may involve meetings with senior officials of the World Bank or the U.S. Treasury Department. In any case, Smith said, a sophisticated understanding of the international banking system, as well as the political ramifications, is paramount to effective representation in this area. Smith, a former registered lobbyist for the government of France who advised that country on the issue of joint military procurement, said a number U.S. allies in Europe are eager to sell their products to the Department of Defense. "The U.S. and NATO fight in a coalition," he said, "so it makes sense to have a common procurement program in such areas as avionics, munitions and radios." However, he cautioned that there are tensions between U.S. and European industry. One case that illustrates the type of representation Arnold & Porter provides involved an Israeli company that made camouflage netting that was superior to any U.S. product. The netting was designed especially for desert combat. Although the Berry Amendment, among other things, requires that all fabric purchased by the Defense Department be made in the United States, the firm successfully argued that the amendment did not preclude the Defense Department from buying the Israeli camouflage because it was a plastic material and not a fabric. Alan B. Nichols is a contributing writer for The Washington Diplomat.