Alice Slayton Clark Archives

USCIB Fights for Investment Agreements and Protections at the OECD and UNCTAD

Published on March 3, 2015
USCIB’s Shaun Donnelly represents American business at UNCTAD on February 25, 2015.
USCIB’s Shaun Donnelly represents American business at UNCTAD on February 25, 2015.

As the contentious global dialogue concerning investment protection and international investment agreements (IIAs) continues, USCIB remains on the front lines fighting for adequate protections for investors in a world increasingly reliant on Foreign Direct Investment (FDI).  USCIB Vice President, Investment and Financial Services Shaun Donnelly spent the week of February 22-27, 2015 in Brussels, Belgium leading a delegation of business experts at the Organization for Economic Cooperation and Development (OECD) stakeholder consultation on the review of the Policy Framework for Investment (PFI); and in Geneva, Switzerland, leading a small but vocal business contingent at the United Nations Conference on Trade and Development (UNCTAD) Experts Group on International Investment Agreements.

At the OECD session, which was co-hosted by the European Commission, USCIB argued for pro-investment, pro-business policies and dispelled concerns about the adverse impacts of investment and the need for greater government involvement. USCIB is working closely with the Business and Industry Advisory Committee (BIAC) to the OECD to provide comprehensive and detailed comments on the PFI revision; a final version of the PFI is expected from the OECD following the March 16-20, 2015 meeting of the Investment Committee in Paris.

During the Experts Group on International Investment Agreements at UNCTAD, Donnelly lead a small team of USCIB’s international partners (BDI, VNO of Netherlands, MEDEF of France, and Business Europe) in defending the current system and model for IIAs, as well as specific measures included in investment protections, particularly investor-state dispute settlement (ISDS) protections.

“We in business are the real users of International Investment Agreements; we invest,” Donnelly said in his remarks to the Experts Group. “IIAs mitigate and reduce risk, which is, of course, the real challenge to investment and specifically to foreign direct investment, and we believe that IIAs work well to do just that.”

USCIB will represent members at the March 15-20, 2015 meeting of the OECD Investment Committee and the corresponding meeting of the BIAC Investment Committee.

 

 

B20 Leaders Call for Action on Trade and Infrastructure

Published on February 27, 2015

g20Representatives from USCIB’s global network participated in B20 policy consultations and called for greater emphasis on reducing trade barriers and improving conditions for infrastructure investment, particularly in the energy sector.

CEOs from the International Chamber of Commerce G20 Advisory Group attended the Saudi Arabia Regional Consultation Forum on February 26 in Jeddah, organized by B20 Chairman Rifat Hisarciklioglu. This event was the first of 11 meetings set to take place this year to gauge business priorities to be fed into the B20 policy recommendations made to the Turkish G20.

“Trade must be put at the top of the G20/B20 agenda,” said Turkish Deputy Prime Minister Ali Babacan. “We must find ways to grow global trade to deliver economic growth and employment.”

And in Antalya, Turkey, International Organization of Employers President Daniel Funes de Rioja, said that the B20 is fully committed to contributing to the success of the Turkish G20 presidency. He noted that the discussions to take place during the upcoming 2015 International Labor Conference will focus on Informality and SMEs, areas of concern that are shared by the G20 employment process.

The 2015 G20 Leaders’ Summit will be held in Antalya on November 15-16.

Investment, Yes! But Let’s Be Consistent

Published on February 19, 2015

By Shaun Donnelly

Foreign investment in the U.S. can create jobs, increase exports, strengthen U.S. competitiveness, give American consumers increased choices, and bolster tax revenues at the local, state, and federal level. But let’s not ignore the other side of the FDI coin, outward FDI by U.S.-based companies, writes Shaun Donnelly in Investment Policy Central.

Read the full post: http://www.investmentpolicycentral.com/content/investment-yes-let%E2%80%99s-be-consistent

Investment Protection In TTIP: One Step Forward, Two Steps Back

Published on February 19, 2015

By Eva Hampl

The EU Commission finally released its report on the online public consultation on investment protection and investor-state dispute settlement in the Transatlantic Trade and Investment Partnership, but it is disappointing that negotiations on an investment chapter in TTIP have yet to resume, writes Eva Hampl in Investment Policy Central.

Read the full post: http://www.investmentpolicycentral.com/content/investment-protection-ttip-one-step-forward-two-steps-back

OECD “Going for Growth” Report Reveals Ambitious Reforms Good for All

Published on February 13, 2015

flags_many_nationsThe OECD recently published the latest edition of its flagship report “Going for Growth,” which assesses countries’ progress in implementing structural policies since 2013, and also identifies new priorities to revive growth. The OECD’s Going for Growth analysis forms the basis of the OECD’s wider contribution to the G20 Framework for Strong, Sustainable and Balanced Growth and to G20 National Growth Strategies.

Highlights from this year’s report include:

  • Structural reforms implemented since the early 2000s have contributed to raising potential GDP per capita by around 5% on average across countries. Most gains come from higher productivity.
  • Further reform based on OECD best practice could raise long-term level of GDP per capita by up to 10% on average across OECD countries.
  • The pace of structural reforms has slowed in most OECD countries in the past two years, but has been accelerating in major emerging markets.
  • Many of the OECD’s pro-growth structural policies have little or no impact on income inequality among households. In fact, a number of reforms reduce wage dispersion and/or household income inequality (e.g. reforms for better access to education, active labour market policies and growth-friendly tax and transfer systems). Also, reducing regulatory barriers to entry and competition in sectors with large potential markets is likely to reduce income inequality.

The Business and Industry Advisory Committee to the OECD Economic Policy Survey 2014, released last May, was a major business contribution to the formulation of the OECD’s Going for Growth report.

BIAC Highlights the Importance of Effective Investor-State Dispute Settlement

Published on February 3, 2015

In order to stimulate inward investment, investors must be treated fairly and protected against the arbitrary behavior of host states. Open, transparent and non-discriminatory investment policies and agreements are a must. In this context, Investor-State Dispute Settlement (ISDS) is an indispensable part of a fair, efficient investment protection system. It provides for a neutral and high-quality legal dispute resolution mechanism in cases of investment treaty breaches by host states.

In light of the current anti-trade sentiment criticizing the ISDS system, USCIB and its global network including the Business and Industry Advisory Council to the OECD believe that it is crucial that the discussion is put back in the right perspective and that common misrepresentations are effectively addressed. The OECD, as an internationally recognized forum for fact-based and objective analysis, and with a long track record of fostering open, transparent and non-discriminatory investment policies, should play an important role in providing objective analysis, thus helping to shape further understanding about the issues that are at stake. The BIAC paper on ISDS contains concrete proposals for future OECD analysis in this area.

USCIB has been a strong advocate for ISDS, and Shaun Donnelly, vice president for investment, trade and financial services, has been travelling around Europe making the case for a strong Trans-Atlantic Trade and Investment Partnership and explaining the importance of ISDS provisions in that and other international trade agreements.

Washington Update: December 2014 – January 2015

Published on February 3, 2015

The new year is off to a running start for the Washington office of the United States Council for International Business, both in the District and abroad. Over the past two months, USCIB staff members wrote a letter to President Obama in support of passing Trade Promotion Authority; pushed the importance of investment protections, especially investor-state dispute settlement, in multiple fora and across Europe; arranged meetings with officials including Ambassador Michael Punke on the margins of Environmental Goods Agreement negotiations in Geneva; wrote four letters on chapters of the OECD BEPS Discussion Draft; met with Jason Kearns, Minority Trade Counsel for Ways and Means; received a briefing from Andy Wyckoff, Director, OECD Directorate for Science, Technology, and Innovation; participated on a panel in Peru regarding single window implementation; and much more.

Download the full update.

USCIB Gives Feedback on OECD New Approach to Economic Challenges Project

Published on January 22, 2015
L-R: Rick Johnston (Citi), David Mallet (Wells Fargo), Tom Molitor (Wells Fargo), Mathilde Mesnard (OECD), Peter Robinson (USCIB) and William Hynes (OECD).
L-R: Rick Johnston (Citi), David Mallet (Wells Fargo), Tom Molitor (Wells Fargo), Mathilde Mesnard (OECD), Peter Robinson (USCIB) and William Hynes (OECD).

USCIB and member representatives met with officials from the Organization of Economic Cooperation and Development (OECD) on January 22 at USCIB’s New York office to give feedback on the OECD’s New Approach to Economic Challenges (NAEC), aimed at updating the organization’s instruments and policy analyses.

USCIB President and CEO Peter Robinson met with the main authors of the NAEC report, Mathilde Mesnard and William Hynes, along with member representatives from Citigroup, Wells Fargo and JPMorgan Chase.

The informal meeting gave USCIB an opportunity to provide member feedback and concerns at this stage of the NAEC project.

USCIB is the American affiliate of the Business and Industry Advisory Committee to the OECD (BIAC), which acts as the voice of business in the OECD and has provided structured input to the NAEC project.

The OECD’s final synthesis report on its NAEC work will be delivered to OECD ministers in June 2015.

 

EU Reports on Investor Consultation Results in U.S.-EU Trade Agreement

Published on January 22, 2015

4937_image001On Tuesday, January 13, the EU Commission released its final report on the online public consultation on investment protection and investor-state dispute settlement (ISDS) in the Trans-Atlantic Trade and Investment Partnership (TTIP). In response, USCIB issued a press release noting the importance of a strong investment chapter including ISDS in the agreement. USCIB also played a leading role in pulling together a group of 15 major business groups on both sides of the Atlantic to issue a joint statement that same day.

The commission launched the consultation in response to public concerns about whether the EU’s proposed approach for TTIP would achieve the right balance between protecting investors and safeguarding the EU’s ability to regulate in the public interest.

The commission – which issued a consultation questionnaire about 12 issues concerning investment protection and ISDS in TTIP – had received a total of nearly 150,000 replies by the July 13 deadline, with the vast majority (around 145,000, or 97%) submitted through various online platforms with pre-defined answers. Most replies were skeptical of investor protections and ISDS.  In addition to these mass-produced responses, there were also submissions from more than 3,000 individual citizens, and about 450 organizations, including USCIB.

According to the report, the commission received responses in three broad categories: statements indicating opposition or concerns to TTIP in general, concerns or opposition with regard to investment protection and ISDS in TTIP, and specific views in relation to the various aspects presented under each question, often accompanied by concrete suggestions for the way forward.

“The commission has not made a clear recommendation on how to move ahead with the negotiations,” said Eva Hampl, USCIB’s Director for Investment, Trade and Financial Services. “That suggests the volume of responses opposing investor protections in TTIP has not gone unnoticed.”

Instead of prescribing a concrete way forward, the commission merely noted four areas where they urge further improvements to be explored:

  • the protection of the right to regulate
  • the establishment and functioning of arbitral tribunals
  • the relationship between domestic judicial systems and ISDS
  • the review of ISDS decisions through an appellate mechanism

“Though not unexpected, the Commission report confirms that TTIP, particularly for investment and ISDS, will continue to be an uphill battle,” said Hampl.

USCIB submitted comments in support of an ambitious investment chapter including strong investor protection and ISDS representing the views of the U.S. business community.  USCIB also signed a joint statement with other U.S. and EU business associations upon the release of the report.

A high standard investment chapter including ISDS is crucial to a successful TTIP, and both the EU and the U.S. stand to gain significantly from a concluded agreement.

USCIB on the TTIP Front Lines

Published on January 20, 2015
4936_image002
USCIB’s Shaun Donnelly addresses a panel with the Styrian regional parliament in Graz, Austria.

Passage of the Trans-Atlantic Trade and Investment Partnership (TTIP), a free trade agreement between the United States and the European Union, would stimulate economic growth and create jobs on both sides of the Atlantic. The agreement has been criticized over the past several months by anti-trade groups, especially over investor protections such as investor-state dispute settlement (ISDS).

To counter this negative messaging, Shaun Donnelly, USCIB’s vice president for investment and financial services, has been traveling around Europe as an American speaker for TTIP on behalf of U.S. embassies, spreading the word about the benefits of a strong, comprehensive, high-standard TTIP for both the United States and the European Union.

Last week, Donnelly visited Austria and Slovenia and participated in speaking engagements, meetings and interviews with government officials, business leaders, journalists and student groups. Anti-TTIP groups refused to speak with Donnelly.

“Austria and Slovenia are among the more ýTTIP-skeptical of EU member states and anti-ISDS fever runs high,” said Donnelly. “Our U.S. embassies in each capital are working hard to get our side of the story out and I was glad to lend a hand with some key audiences.”

USCIB is working with its member companies to mobilize support for TTIP in Europe and is seeking opportunities to promote and explain the business case for TTIP.