Alice Slayton Clark Archives

ICC Welcomes New Dialogue with WTO

Published on May 31, 2016

switzerland-wto-general-councilThe International Chamber of Commerce (ICC) has today welcomed the conclusion of the World Trade Organization’s (WTO) first ever dialogue with the business community as an important step towards strengthening the global trade agenda.

The dialogue was initiated off the back of the successful outcome of the WTO’s ministerial conference in Nairobi last December, and in response to growing concern within the global business community about faltering global trade growth.

Addressing WTO members, ICC’s First Vice-Chairman Sunil Bharti Mittal said:”To be clear: business wants predictable, modern and up-to-date multilateral trade rules, negotiated and agreed at the WTO…Trade is expected to grow by less than 3 percent for the fifth consecutive year in 2016. We should not accept this as the new normal and we are ready to work constructively with WTO members to restore trade as a central driver of global growth.”

The first-of-its-kind event identified a broad range of possible WTO initiatives to help boost trade-led inclusive growth. These included:

SME growth

Business leaders encouraged the WTO to explore possible initiatives to make trade easier for small- and medium-sized enterprises (SMEs), going beyond trade facilitation reforms to identify where harmonized rules and end-to-end standards can help small businesses access global markets. Access to financing was also highlighted as a priority to support SME trade growth.

Investment

Many participants in the dialogue expressed an interest in a new WTO dialogue to explore the scope for global standards in the field of investment promotion, protection and facilitation.

Sectoral liberalisation

The dialogue highlighted an interest from a range of sectors in pursuing sector-specific talks as a complement to the ongoing Doha Round.

E-commerce

There was a strong call from business leaders for the WTO to play a central role in underpinning an open, reliable and secure global digital economy. Participants expressed particular interest in possible “e-commerce negotiations” which could encompass a broad range of issues such as customs duties, electronic signatures, data protection and localization requirements.

Speaking on the systemic importance of an e-commerce initiative, Mittal said:”The global nature of e-commerce means that the WTO has a vital role to play in the further development of rules and standards for this area. E-commerce has the potential to revolutionize global trade flows. Today, even the smallest of businesses can go global if they can access the Internet.”

At the conclusion of the dialogue, ICC has called on WTO members to maintain contacts with the business community in taking forward possible new trade talks and initiatives.

ICC Secretary General John Danilovich said: “We have seen a positive discussion today about how we can work together to maximize the contribution of trade and investment to achieving inclusive growth and sustainable development. We hope that today’s initiative can be followed up with concrete steps including further meetings of this kind. ICC stands ready to support this dialogue in any way possible.”

Business Calls for Improved Trade and Investment at B20

Published on April 22, 2016

International Chamber of Commerce (ICC) and USCIB Chairman Terry McGraw joined global business leaders at a B20 meeting in Washington, D.C. and urged the private sector to intensify engagement with the G20 to promote international trade and investment.

Presided by B20 China Sherpa Yu Ping, the B20 Joint Task Force meeting was held on the margins of the Spring Meetings of the International Monetary Fund (IMF) and the World Bank Group and in the lead up to the G20 Summit in Hangzhou, China next September.

Leading an ICC delegation of 40 CEOs from major multinational corporations, McGraw said: “We need more cooperation by the G20 to reignite world economic growth. That means that G20 leaders need to make trade and investment central to their growth agendas, making investments easier, reducing red-tape and cutting the cost of doing business.”

Zhu Min, IMF Deputy Managing Director stressed that structural reform must be a top priority for the G20 this year: “It’s absolutely important to bring the private sector into this global debate. In this critical junction, while we are facing global challenges and uncertainties, the private sector once again will play a pivotal and key role to stabilize world economic growth, financial markets, to push for growth and bring the world into the next high level.”

Read more at ICC’s website.

Business Pushes for U.S. Manufacturing Competitiveness

Published on April 22, 2016

U.S. manufacturers face high costs for inputs not produced in the United States. USCIB joined more than 200 trade groups and companies urging Congress to pass the Miscellaneous Tariffs Bill (MTB) overhaul bill quickly, which would eliminate unnecessary taxes on imported goods not available domestically. USCIB and others stated in a letter that U.S. manufacturers have faced annual tariffs of nearly $750 million since the last MTB expired in 2012, “undermining American competitiveness and the ability of these companies to retain and create manufacturing jobs in the United States.”

“This is something that we’ve been trying to get done for years,” House Speaker Paul Ryan told reporters on Friday. “This MTB issue is something that I personally have been involved in, and I’m very excited that we have a solution now that we are moving. It is a jobs bill. It is a transparency bill. And it upholds our earmark ban, first and foremost, which is very important.”

Read the full letter.

USCIB Discusses Future of U.S. Manufacturing at Bloomberg Seminar

Published on April 20, 2016
Rob Ivester, Deputy Director of the Advanced Manufacturing Office, U.S. Department of Energy; Vinai Thummalapally, Executive Director, SelectUSA, U.S. Department of Commerce; Shaun Donnelly, Vice President, Investment and Financial Services, USCIB; Matthew Philips, Associate Editor, Blomberg Businessweek (Moderator)
L-R: Rob Ivester (U.S. Department of Energy), Vinai Thummalapally, (U.S. Department of Commerce), Shaun Donnelly (USCIB), Matthew Philips (Bloomberg Businessweek)

With aging and outdated infrastructure, the U.S. manufacturing industry is stalling. How will the United States regain its place as the global leader in manufacturing, and what will future manufacturing plants look like?

USCIB’s Vice President for Investment and Financial Services Shaun Donnelly was a lead panelist in Bloomberg Government’s April 19 Washington seminar “The Future of Manufacturing.” Sharing the panel with senior officials from the U.S. Departments of Commerce and Energy, Donnelly offered a private-sector perspective on the role foreign direct investment (FDI) plays in U.S. manufacturing, and on the unique strengths and challenges of the United States as a manufacturing location.  He emphasized the rapid changes in manufacturing around the world that have led to increased competitive pressures.

“In today’s and tomorrow’s global value chain world, FDI drives growth here at home and is also a key tool for U.S.-based manufacturers, large and small, to serve growing international markets,” Donnelly said.

The seminar drew a large audience of Bloomberg subscribers on-line and in-person at Bloomberg Government’s Washington, D.C. headquarters.

OECD Chief Economist Discusses Global Economic Trends at USCIB

Published on April 14, 2016
Mann
Catherine Mann

Dr. Catherine Mann, chief economist and head of the Economics Department at the OECD came to USCIB on April 13 for wide-ranging discussion with members and staff.  Mann, one of the most senior U.S. citizens in the OECD secretariat, has extensive experience in Washington from her earlier positions at the Federal Reserve, the President’s Council of Economic Advisors, and at the Peterson Institute for International Economics.

Her presentation covered global trends in economic growth, productivity, and trade and investment, identifying some challenging issues ahead, and interesting work underway at the OECD in those areas. In that context, she had some particularly interesting observations on the Chinese economy and China’s economic relationships with the world. Mann is very interested in finding ways to strengthen private sector input into OECD’s work on economics and in other important areas.  Her very candid and thought-provoking observations gave members some interesting issues to ponder.

Washington Update: February – March 2016

Published on April 11, 2016

washington-Lincoln-MemorialsDuring the months of February and March 2016, USCIB staff met with Mark Linscott and Jai Motwane (USTR) on the WTO and TTIP negotiations, participated in APEC ITC, Customs, and Health meetings, represented members at OECD meetings on Investment, anti-Bribery, and State-Owned Enterprises, submitted formal comments to the ITC on the TPP, met with CBP and USTR about TPP and the MPF, spoke on panels in D.C., Paris, and Silicon Valley, and much more.

Download the full update.

Inside:

USCIB Trade Committee Meets with Mark Linscott and Jai Motwane from USTR
At the March meeting of the USCIB Trade and Investment Committee, members met with Mark Linscott, Assistant U.S. Trade Representative for WTO and Multilateral Affairs, and USTR Senior Director for Services and Investment, Jai Motwane. They provided a wide-ranging assessment of the WTO post-Nairobi, and discussed, among other topics, the recently concluded TTIP Investment discussions.

USCIB Provides Written Submission to ITC on TPP
In February, USCIB made a written submission to the International Trade Commission on the TPP, which highlighted USCIB’s belief that the TPP will contribute substantially to economic growth in the United States and the Asia-Pacific region, cement U.S. global leadership and provide significant new opportunities for U.S. businesses, workers and farmers. The submission presented views on specific issues covered by chapters of the TPP of particular interest to our members.

Commerce/USTR Officials Brief USCIB Members on “EU-U.S. Privacy Shield” Data Transfer Framework and APEC Privacy-Related Work
During USCIB’s March ICT Policy Committee meeting, members were briefed by Krysten Jenci and Michael Rose from the Commerce Department, and Robb Tanner from USTR on key features of the new EU-U.S. Privacy Shield as well as the implications of the agreement for the TTIP negotiations.

USCIB Submits Comment Letters to IRS and OECD
On March 22, 2016, USCIB submitted a comment letter to the IRS on its proposed regulations under section 6038 addressing the effective date and the resulting gap year, the date of filing, constituent entities and the MNE group, and several other issues raised by members. USCIB also submitted a letter to the OECD advocating for mandatory binding arbitration and strongly supporting short-form arbitration.

CBP Presents to USCIB Customs Committee on TPP and MPF Changes
CBP Senior Trade Advisor, Maria Luisa Boyce, delivered a presentation on Merchandise Processing Fees and the TPP to the USCIB Customs and Trade Facilitation Committee at its March meeting. Boyce walked members through the background they had developed using ACE data. USCIB is working with members to assess the impact of the MPF changes.

Download the full update.

Strong Business Participation at OECD Integrity Week

Published on March 31, 2016

scalesA strong business delegation will participate in the OECD Integrity Forum on April 19-20, which this year will focus on Global Trade Without Corruption. The Forum will bring together different policy communities as well as the private sector, civil society organizations and academia, and will encourage discussion on key issues, such as preventing corruption in customs, protecting supply chains, improving business in emerging markets and countering illicit trade.

The Business and Industry Advisory Committee (BIAC) to the OECD policy group leadership and experts will also be represented as speakers at the Forum. The BIAC Task Force on Anti-Bribery/Corruption will organize a preparatory meeting on the evening of April 18. BIAC will furthermore participate in the Working Party of Senior Public Integrity Officials and in a Symposium on Building integrity for inclusive growth: translating the vision into action which will take place during the OECD Public Governance Committee meeting the same week.

Back-to-back with the Forum, the OECD is organizing a seminar on Enhancing Integrity for Business Development in the Middle East and North Africa (MENA) Region on April 18 to identify good practices in improving business integrity and actions required to level the playing field for companies, and identify priorities for the OECD MENA work going forward. Please click here for more detailed information.

Waiting a BIT for China

Published on March 31, 2016

Via Politico Pro Trade

Shaun Donnelly, USCIB vice president for investment and financial services, spoke to Politico about the prospects of a U.S.-China Bilateral Investment Treaty as President Barack Obama and Chinese President Xi Jingping are scheduled to meet this afternoon.

Against the backdrop of President Barack Obama and Chinese President Xi Jinping’s meeting this afternoon, the window is closing on China’s pledge that it would submit an updated market access offer in its investment talks with the U.S. in March. While an offer might have come overnight, Beijing had still not put forward an updated “negative list” offer for the bilateral investment treaty by late Wednesday.

“I understand that a comprehensive, high-standard U.S.-style negative list is a new and daunting proposition for a country like China, which has a long tradition of controlling investment, both domestic and foreign, quite tightly,” said Shaun Donnelly, vice president for investment and financial services at the U.S. Council for International Business.

But it would be disappointing if the two sides missed the opportunity of Xi’s visit to make progress on the talks, he said, even though the Nuclear Security Summit is largely focused on defense and security issues.

Read the full story

Canada Sets Bad Precedent on Transatlantic Investment

Published on March 30, 2016

by Eva Hampl

In May 2009, the European Union launched negotiations with Canada for the Comprehensive Economic and Trade Agreement (CETA). After five years of negotiations, they successfully concluded in August of 2014, and the Canada-EU summit in September 2014 officially marked the end of the negotiations of the agreement, which promises to remove over 99 percent of tariffs between the two economies. CETA is the first agreement where the EU has negotiated investment provisions drastically different from the long-established language found in European investment treaties, many akin to what is also provided in our U.S. Model Bilateral Investment Treaty (BIT). The EU has also been negotiating a Transatlantic Trade and Investment Partnership (TTIP) with the U.S. since 2013. Negotiations on the investment chapter in TTIP resumed only recently, following an extended process and public debate in Europe on investment protection.

Today investment accounts, directly or indirectly, for a significant and growing percentage of cross-border commerce, encompassing vast global supply chains, and businesses rely on strong investment protections for legal certainty in many countries around the world. Accordingly, investment agreements and chapters continue to be of great importance.

Until a few years ago, the public in Europe had not paid much attention to investor-state dispute settlement (ISDS), however has now taken up this cause in an effort to negatively impact agreements such as CETA as well as the TTIP. The widely publicized public debate on ISDS in Europe has been very ideological and emotional in parts, resulting in a politicization of the issue, the response to which was a political solution: “improving” the world of international investment agreements (IIAs), by providing solutions to not quite clearly articulated problems. One such “solution” is the proposal of an international investment court, consisting of a roster of judges, as described in detail in the EU’s proposal for an investment chapter in the context of the TTIP negotiations.

Read the full post at Investment Policy Central

International Business Takes a Stand on International Investment Agreements

Published on March 30, 2016

by Shaun Donnelly

The Business and Industry Committee (BIAC) to the OECD in Paris recently issued a policy paper on “Why International Investment Agreements Matter”.  The paper was issued in connection with a March 14 OECD conference in Paris on International Investment Treaties.  BIAC is the formally-established business consultation network among the 34 OECD member nations. USCIB played a leading role with BIAC in the development of this investment policy paper. As USCIB’s vice president for investment and financial services, I was a panelist at the OECD Conference on Investment Treaties last week.

The BIAC policy paper lays out the importance of strong international investment agreements in promoting and protecting foreign direct investment (FDI) flows, which, in turn, are major drivers of economic growth, job creation and improved competitiveness.  FDI and investment agreements have recently come under increased political attacks from opponents of economic engagement in today’s and tomorrow’s globalized economy.  This BIAC document lays out a clear exposition of views of international business on the importance of FDI and strong investment agreements.

Read the full post at Investment Policy Central