USCIB Member Cristian Rodriguez-Chiffelle (BCG) Approved as Vice Chair for Newly-Formed BIAC Investment Committee 

Published on November 16, 2023
Cristian Rodriguez-Chiffelle

Business at OECD’s (BIAC) Executive Board formally approved the nomination of USCIB member Cristian Rodriguez-Chiffelle (Boston Consulting Group) for Vice-Chair of the BIAC Investment Committee on November 7. 

 

Rodriguez-Chiffelle serves as senior advisor for Boston Consulting Group’s (BCG) Global Advantage and Public Sector practices. He has consulted with governments, firms and international organizations across multiple regions. He has extensive expertise in fields such as sustainable FDI strategies for renewable energy, investment attraction and promotion and the negotiation and implementation of trade agreements. His extensive experience has primarily focused on Latin American trade, climate policy and investment. 

 

Rodriguez-Chiffelle’s previous experience participating in the investment-related operations of international organizations and the Chilean government will be of great value when conveying business priorities to governments and OECD representatives as part of his new position. 

 

The BIAC Investment Committee is a newly independent committee, having previously been part of the Investment and Responsible Business Conduct Committee. It is primarily focused on challenges that companies are facing with respect to the international investment climate and aims to highlight the importance of appropriate investor safeguards, market openness and a level-playing field in global trade and investment. 

Giblin Speaks at ACI Advanced Forum on Import Compliance and Enforcement

Published on November 16, 2023

USCIB Senior Director for Customs and Trade Facilitation Megan Giblin spoke as a panelist at the 12th Advanced Forum on Import Compliance & Enforcement, hosted by the American Conference Institute (ACI).

Held November 7-8, this in-depth strategic conference covered U.S. and international regulatory changes impacting imports and customs compliance strategy, especially concerning evolving U.S. import controls.

Giblin spoke on the panel titled An Update on CBPs 21st Century Customs Framework (21CCF), providing an outlook on the progress of government and industry 21CCF efforts to simplify, secure and enhance 21st century trade. She discussed the status of 21CC efforts from a broader industry perspective as well as spoke to some of the challenges to the process and the consensus work concerning 21CCF that USCIB has undertaken alongside other industry associations.

“We believe that customs modernization, both in the U.S. and at the national level abroad, is critical and cannot be rushed,” emphasized Giblin in her remarks. “Clear and transparent consultation with the trade community is needed.”

Giblin spoke alongside Garrett Wright (Customs and Border Protection), Kathryn Wilkins (Alliance Operating Systems and Trade Co-Chair of COAC) and Shoshana Grove (International Bridge).

Giblin expressed gratitude to ACI for including USCIB in this discussion.

USCIB Co-Signs Letter Condemning Administration Decision to Withdraw Support for Cross-Border Data Flow Proposals at WTO

Published on November 13, 2023

USCIB signed a multi-industry association letter decrying the Biden Administration’s decision to end its support for proposals on data flows, data localization and source code, as part of the World Trade Organization (WTO) Joint Initiative on E-commerce (JSI) negotiations. The letter expresses USCIB’s deep dismay regarding a reversal on these core disciplines and U.S. leadership on digital economy priorities.

The letter, co-signed with associations such as the U.S. Chamber of Commerce, National Association of Manufacturers and Recording Industry Association of America, expresses concern that this decision undermines the United States Trade Representative’s (USTR) longstanding commitment to protecting cross-border data flows, which facilitate core values and goals, such as the spread of information, freedom of expression and ability to solve complex global challenges. The letter criticizes USTR for signaling an end to the Administration’s fight against discrimination affecting American companies and their workers, as well as legitimizing digital protectionism across the globe, which strengthens adversaries and hurts American businesses.

The letter encourages USTR to reverse this harmful decision and return the U.S. to its role of global leader in a rules-based trading system that benefits American companies, aligns with the U.S.’s core values and empowers the government to push back against regulatory overreach by authoritarian regimes.

USCIB President and CEO Whitney Baird also spoke with leadership at USTR to express concerns about the implications of this policy reversal at IPEF and the WTO JSI for e-commerce negotiations. Baird refuted the narrative that the digital negotiations only benefit the ICT industry, stressing they also serve the much larger universe of manufacturers, retailers, financial services and logistics and professional services firms that rely on these services and technologies. USCIB made clear that a U.S. vacuum on the global stage leaves space for states like India to step in and advance digital protectionism.

USCIB also is raising concerns at the OECD through our voice in Business at OECD (BIAC) to ensure continued support for strong disciplines that promote barrier-free data flows and legitimate access to digital products and services. USCIB will continue to strategize on next steps regarding getting the U.S. position back on track on digital issues at the WTO, IPEF and beyond.

Annual OECD-USCIB International Tax Conference Zeroes in on Pillars One and Two

Published on November 8, 2023
Lily Batchelder (Treasury)

Since 2021 when 140 countries agreed on a global tax deal, international tax policy discussions have concentrated intensely on Pillars One and Two, which focus on the reallocation of residual profits of the largest and most profitable Multinational Enterprises (MNEs) to market jurisdictions and a 15% global minimum tax, respectively.

USCIB’s annual International Tax Conference was no exception. Discussions on Pillars One and Two were the focus of the two-day tax conference, hosted alongside the OECD and Business at OECD (BIAC) on October 30-31 in Washington DC. Hundreds of industry leaders and practitioners including USCIB members, U.S. and foreign government tax officials and press gathered for the much-anticipated event, hosted by USCIB VP and International Tax Counsel Rick Minor.

Lily Batchelder, assistant secretary for tax policy at U.S. Department of Treasury, served as plenary speaker and provided a framework for the two-day conference and touched upon an important element—the multilateral work at the OECD in the tax policy space.

“Today, at the 16th annual Tax Conference of the USCIB, the question is not should the international tax system change,” said Batchelder. “We already know from close to 15 years of experience that the system has changed and returning to old rules is not a real tax solution. Instead, the question is how should the international tax system change in order to encourage global tax certainty and stability? In my view, our multilateral work at the OECD has been, and will continue to be, essential to finding answers to those questions.”

Batchelder’s comments were echoed by Michael Plowgian, deputy assistant secretary for international tax affairs at the U.S. Treasury Department, who spoke on the first panel, The International Tax Agenda. “The administration remains committed to implementing Pillars One and Two,” said Plowgian. “We believe it’s the best way to address the instability that we see in the international tax system.”

Rick Minor (USCIB)

The second day kicked off with panels on Pillar Two, discussing the implementation of the global minimum tax and improving global tax coordination, particularly relating to rule co-ordination and dispute prevention and resolution.

Beyond Pillars One and Two, experts also discussed other pressing issues such as addressing increased global mobility of workers, carbon mitigation approaches, tax certainty beyond the Pillars and the rationalization of other base erosion and profit shifting (BEPS) measures.

The conference was sponsored by USCIB. Corporate sponsors included EY, PwC, Amazon, Caplin & Drysdale, General Mills, KPMG, Baker McKenzie and ExxonMobil.

Other featured speakers included:

  • Alan McLean, Chair, BIAC Tax Committee and former Executive Vice President, Taxation and Controller, Shell International Limited, UK (retired)
  • Achim Pross, Deputy Director, OECD CTPA
  • Barbara Angus, Global Tax Policy Leader, Ernst & Young (EY)
  • Bob Hamilton, Commissioner of the Canada Revenue Agency; Chair of the FTA
  • Bob Stack, Managing Director, Washington National Tax, Deloitte Tax LLP
  • Brett Weaver, Partner, KPMG
  • Carolina Perez-Lopez, Vice President, Global Tax Planning and Tax Counsel, Johnson & Johnson
  • Carlos Eduardo Protto, Director of International Tax Relations, Ministry of Treasury, Argentina
  • Dani Rolfes, Partner in Charge, Washington National Tax, KPMG
  • Daniel Smith, Director, International Tax Planning & Policy, Alphabet
  • Hannah Hawkins, Principal, Washington National Tax, KPMG
  • Isaac Wood, Attorney-Advisor, Office of Tax Policy, U.S. Treasury
  • Jason Weinstein, Vice President, Tax, North America, Amazon
  • John Peterson, Acting Head of Division ICA, OECD CTPA
  • John Stowell, USCIB Tax Committee Chair, Head of Global Tax and International Financial Reporting, The Walt Disney Company
  • Josh Ruland, Principal, EY
  • Kevin Nichols, Head of Tax ESG, Tax Communications, and Tax Policy, Uber
  • Kyle Meng, Senior Economist, White House Council of Economic Advisers
  • Liz Stevens, Member, Caplin & Drysdale
  • Manal Corwin, Director, OECD CTPA
  • María José Garde, Director General of Taxation, Ministry of Finance, Spain
  • Mark Harris, Vice President and General Tax Counsel, The Coca-Cola Company
  • Mark Martin, Principal, Washington National Tax, KPMG
  • Marlene Nembhard-Parker, Co-Chair of the Inclusive Framework; Deputy Commissioner General, Legal Support Services – Tax Administration Jamaica
  • Marco Iuvinale, Director of European and International Tax Affairs, Italian Ministry of Economy and Finance
  • Mary Jones, Director, Benefits Taxation, Microsoft
  • Mike Williams, Director of Corporate Tax, HM Treasury
  • Nate Carden, Partner, Skadden
  • Nick Schulz, Director of Stakeholder Engagement and Senior Policy Advisor, ExxonMobil
  • Nicole Welch, Director, Treaty and Transfer Pricing Operations, LB&I, IRS
  • Pat Brown, Principal, Washington National Tax, PwC
  • Peter Blessing, Associate Chief Counsel (International) at the Internal Revenue Service
  • Rafic Barrage, Partner, Baker & McKenzie
  • Rick Minor, VP & International Tax Counsel, USCIB
  • Robert Cusmano, Senior Director, Global Tax Policy, Procter & Gamble
  • Silke Bruns, Director for International Taxes, Federal Ministry of Finance, Germany
  • Thomas Bettge, Senior Manager, Washington National Tax, KPMG
  • Tobias Appl, Partner, EY
  • Tom Roesser, Tax Policy Counsel, Microsoft
  • Tracee Fultz, Global Transfer Pricing Leader, EY
  • Whitney Baird, President & CEO, USCIB
  • Will Morris, Global Tax Policy Leader, PwC
  • Yah Fang Chiam, Deputy Commissioner, Business Group, Inland Revenue Authority of Singapore

The 17th annual OECD USCIB International Tax Conference will be held on June 24-25, 2024 in Washington DC.

US Funding of the OECD is Critical to US Global Economic Policy Influence

Published on November 2, 2023

by Whitney Baird, USCIB President & CEO 

As Congress debates on whether to maintain the current levels of funding for the OECD, USCIB urges Congress to maintain the current level of U.S. financial contribution and stresses that diminishing funding will have consequences for U.S. economic interests and the U.S. role in multilateral policymaking.

 

Congress must maintain the current level of U.S. financial contribution to the Organization for Economic Cooperation and Development (OECD). The United States benefits most when we are fully engaged with the rest of the world through vibrant international organizations such as the OECD. It stands out as an established venue for promoting U.S. interests and fostering sensible policies for sustained economic growth among OECD partners and other nations around the globe.

Few of the international organizations to which the United States belongs are as supportive of U.S. values and economic policies as the OECD. The OECD’s mission is to promote global economic growth – growth that benefits U.S. businesses, consumers, workers and taxpayers. From a U.S. business perspective, the OECD is uniquely open and receptive to the views and real-world experiences of the private sector.

As the U.S. representative to Business at OECD, the private sector voice in OECD policymaking, the U.S. Council for International Business (USCIB) attests to the positive impact of the OECD across a range of issues affecting the competitiveness of the U.S. economy, including investment, taxation, trade, energy and environment, health, competition, consumer policy, bribery and corporate governance. USCIB members rely on the OECD to be an institutional voice of evidence- and data-based policy guidance and assessment, influencing policies and practices in markets important to U.S. business and to jobs generated for U.S. taxpayers.

The OECD delivers multilaterally agreed principles and standards that level the international playing field, provide business certainty, and save billions of dollars for U.S. companies. For example, the United Nations estimates over $1 trillion in bribes are paid worldwide each year, equating to a 20 percent tax on foreign investment. The OECD Anti-Bribery Convention enshrines the policies and principles of the US. Foreign Corrupt Practices Act, the gold standard for combating corrupt practices that increase the cost of doing business internationally.

The OECD’s creation of a global platform on product recalls has helped countries protect citizens from physical and economic harm, providing a single window for sharing information and facilitating action and coordination for recalls in a complex global marketplace. The OECD advances a critical U.S. risk-based approach to the development of digital rules and policies, for example, through its OECD Artificial Intelligence Principles, the OECD Privacy Guidelines and the OECD Policy Framework on Digital Security.

As one of the world’s largest and most trusted sources of data and analysis, OECD guidelines, rules and best practices are well regarded and emulated around the world by both member and non-member countries, OECD economists share information, encouraging countries to embrace high-level standards, so everyone plays by the same rules and cooperates on shared objectives. This is important to U.S. stakeholders, particularly as the OECD considers adding new members including current accession candidates Brazil, Peru, Bulgaria, Croatia and Romania. Crucially, the OECD and its 38 members serve as a powerful voice against anti-competitive and non-market economy practices aggressively promoted by nations such as China.

We believe continued strong U.S. engagement with the OECD helps the United States to lead the policy debates that take place in the wide range of OECD committees. We encourage Congress to maintain current funding levels for the OECD. If the United States diminishes its funding and influence in the OECD, the consequences for U.S. economic interests and the U.S. role in multilateral policymaking would be substantial.

USCIB Member Spotlight: EY on Multinationals Face Complex Data Challenges from Global Tax Deal

Published on November 1, 2023

USCIB member EY America’s Kevin Flynn discusses how businesses can position themselves to comply with the BEPS 2.0 project. The full article can be viewed via a paid subscription to Bloomberg Tax.

EY was a sponsor at this week’s USCIB-OECD International Tax Conference. 

“Multinational enterprises are facing new and complex tax rules stemming from the OECD and G-20 countries’ BEPS 2.0 project—particularly the project’s Pillar Two 15% global minimum tax, which is set to apply to multinational groups with global revenue of more than €750 million ($829 million).

Enforcing these rules will require unprecedented global cooperation between tax authorities, and implementation approaches likely will vary among jurisdictions adopting the rules, making compliance a challenge and creating the risk of controversy. Multinationals also will need to manage a substantial increase in data collection and tracking required to comply with these rules.

Given the rules’ scope and complexity—and implementation as early as 2024 in many jurisdictions—multinationals need to evaluate and update their existing data strategies now.”

Read the rest of the post here.

USCIB Member Google Wins Prestigious ACE Award for Women’s Economic Security Work in Poland

Published on November 1, 2023
U.S. Ambassador to Poland Mark Brzezinski presents the award to Marta Poslad, Google Polska

USCIB member Google received the Department of State’s prestigious Award for Corporate Excellence (“ACE Award”) in the Women’s Economic Security category for the outstanding work Google of Poland (“Google Polska”) in promoting Women entrepreneurship, including among Ukrainian women refugees. Google was the only large U.S. multinational to win an ACE Award this year; the other four winners are small or medium U.S. enterprises operating in Africa. Secretary of State Antony Blinken hosted the annual award ceremony at the State Department on October 30.

Google’s win this year marks the 25th ACE Award win by a USCIB member company in the 24 years the Awards have been presented. Google Polska was recognized for setting the standard in promoting gender equality in the Polish and Central European workplace and supporting women in tech initiatives in Poland, Ukraine and the region. Women fill the large majority of senior leadership posts in Google’s very impressive Polish operations.

According to USCIB Senior Advisor Shaun Donnelly, who attended the award ceremony, Google Polska’s Director of Government Affairs and Public Policy for Central Europe Marta Poslad accepted the award on behalf of the Google team and delivered very heart-felt remarks. Google’s Head of Global Government Affairs and Public Policy Karan Bhatia represented Google corporate leadership. U.S. Ambassador to Poland Mark Brezinski, who had originally nominated Google Polska for the award, flew home from Warsaw to be at the ceremony and to present the award to Google.

Whitney Baird, USCIB’s new president and CEO, and previously a long-time senior State Department senior official, was one of the invited guests at the annual ceremony.

“I’ve worked behind the scenes on the ACE award ceremony and selection process for many years,” said Baird. “It’s always been a great event, but I enjoyed seeing it this year from a private sector perspective. I was delighted to see a great USCIB member company among the winners again this year. Google in Poland is a prime example of the critical work USCIB member companies are doing around the world, representing and nurturing American values, promoting innovation and economic growth, and showing how businesses—large and small—can be responsible citizens that can do good while doing well.”

USCIB was the only major U.S. trade association represented at the ACE Awards ceremony this year.

“We have worked over the years to support the State Department team organizing the program, the nomination and selection process and to bring more attention to this great program,” said Donnelly.

USCIB Submits Comments for 2023 National Trade Estimate Report on Foreign Trade Barriers to U.S. Exports 

Published on October 30, 2023

This week, USCIB submitted comments concerning barriers to U.S. exports of goods, services, and U.S. foreign direct investment for inclusion in the annual National Trade Estimate (NTE) Report. 

Published yearly by the U.S. Trade Representative (USTR), the NTE Report provides a comprehensive review of significant foreign barriers to U.S. exports of goods and services, U.S.  foreign direct investment, and U.S. electronic commerce. USTR’s report aims to promote economic growth, human welfare, and environmental protection amid a growing global economy. 

USCIB’s comments concern 50 countries, covering a range of trade-related topics including data protection, market access, U.S. telecommunications trade agreements, digital trade, and agriculture. They discuss policy priorities for USCIB, its members, and industry, aiming to improve and streamline global trade and multilateral relationships. 

The section on China calls for greater market access for the ICT industry while recognizing the multifaceted and complex nature of U.S.-China relations. The section also criticizes cybersecurity in China and urges the nation to adopt stronger intellectual property (IP) and copyright protections. Additionally, for countries such as Argentina and Brazil, the report highlights the need for better compliance with international customs agreements, such as the World Trade Organization’s Trade Facilitation Agreement (TFA). New sections are also included on India import licensing, Vietnam electronic payment services and Indonesia customs duties on electronic transmissions. 

The comments also touch on issues such as sustainability and health. For example, the section on Mexico calls on policymakers to diminish hurdles for companies seeking to connect to the electricity grid and purchase clean and reliable energy. Similarly, the report criticizes Canada’s proposed ban on single-used plastic products through a CEPA-based regulatory approach, which will enact bans on the movement of used plastics destined for recycling or other sustainable uses. 

As the leading voice for U.S. business, USCIB hopes that its combined comments will highlight issues that challenge the open, fair, and rules-based international trade and investment system. USCIB thanks USTR and Ambassador Katherine Tai for its publishing of the NTE Report. 

USCIB Voices Concern Over UN Treaty on Business and Human Rights

Published on October 27, 2023
Ewa Staworzynska

The “Open-Ended Intergovernmental Working Group on Transnational Corporations and Other Business Enterprises with Respect To Human Rights” convened in Geneva this week for its ninth session of negotiations on Legally Binding Instrument on Business and Human Rights. The Legally Binding Instrument, also known as the “UN Treaty on Business and Human Rights,” is in its fourth draft, as released on July 31st this year.

For years, the business community has been concerned about onerous requirements on business, liability risks and legal uncertainty the draft Treaty would create both for States and companies, and these challenges continue to persist based on the fourth draft. It also promotes extraterritorial jurisdiction and includes broad definitions, causing further questions about its viability and implementation feasibility.

“USCIB is firmly committed to respecting human rights and advancing responsible business conduct globally,” said Ewa Staworzynska, USCIB director of corporate responsibility and labor affairs, who represented USCIB during the negotiations. “This draft Treaty, in its current form, would create a severe level of legal uncertainty for governments and for business, and it would contribute to divestments and market exits, especially in developing countries. Unfortunately, the current draft Treaty takes us away from the well-respected UN Guiding Principles for Business and Human Rights.”

The negotiations progressed slowly, only covering three out of 24 articles with vast disagreements on what the scope of the Treaty should be. The governments ultimately adopted the session report, by consensus, and thus agreed to present a procedural decision to the Human Rights Council in 2024 to request additional resources for the process. In addition, intersessional consultations will be held, together with legal experts, ahead of the 10th negotiation next year.

USCIB Supports Joint Global Business Position on UN Treaty on Business and Human Rights

Published on October 27, 2023

USCIB joins in support of the Global Joint Business Position on the Draft Legally Binding Instrument on Business and Human Right.

The position paper responds to fourth Draft of the Legally Binding Instrument, also referred to as the “UN Treaty on Business and Human Rights,” prepared as the basis for the Ninth Session of the Open-Ended Intergovernmental Working Group on Transnational Corporations and Other Business Enterprises with Respect to Human Rights (OEIGWG).

According to USCIB Director for Corporate Responsibility and Labor Affairs Ewa Staworzynska, the Joint Business Position is the result of extensive inputs from USCIB member companies, as well as the International Organization of Employers (IOE), BusinessEurope and Business and OECD (BIAC).

Since the beginning of the negotiations of the Treaty, there have been fundamental concerns, and these continue to persist based on the content in the fourth Draft.

“At the core, the Treaty fails to address the root causes of adverse human rights impacts, such as weak governance, weak rule of law, corruption, lack of development and high levels of informality,” said Staworzynska. “Further, it blurs the differentiated roles of States and business when it comes to human rights, it promotes extraterritorial jurisdiction, and it would create severe liability risks and legal uncertainty if it were to be adopted in its current form.”

USCIB is committed to advancing responsible business conduct and encourages governments to take into account the legal implications and the feasibility of implementation and further urges governments to ensure that the Treaty is aligned with the well-respected and widely supported UN Guiding Principles on Business and Human Rights.

The position paper can be accessed here.