Alice Slayton Clark Archives

Washington Update: August to September 2013

Published on October 1, 2014

During the months of August and September, USCIB’s Washington, D.C. office arranged for members to meet with Dan Mullaney and Daniel Bahar from USTR to discuss TTIP, TPP and new developments on the China BIT negotiations; organized a program in Geneva on forced localization; filed a submission on China compliance with the WTO; met with Arrow Augerot of USTR on APEC priorities for 2014; led U.S. industry input into the OECD on its action plan for BEPS; engaged Caitlin Fennessy of Commerce on EU data privacy issues; sent comments to ICANN on domain name collisions, and much more.

Download the full report.

 

Washington Update: August to September 2014

Published on October 1, 2014

During the months of August and September 2014 USCIB staff hosted a launch event on Capitol Hill for the Coalition for Green Trade in support of the Environmental Goods Agreement with USTR Froman and Sen. Wyden as lead speakers; organized a meeting for members with Amb. Sepulveda on the future of the IGF; discussed the status of investment negotiations with Daniel Bahar, USTR , and Michael Tracton, State; submitted extensive comments to USTR on China’s WTO compliance; chaired the first in – person meeting of the APEC Virtual Customs Working Group, and much more. Below are summaries of these and other highlights from the activities of USCIB in Washington, DC over the last two months. If you have any questions or comments, or want more information on a specific topic, please contact any of the staff members listed at the end of this brief.

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USCIB Urges Obama to Prioritize TFA

Published on October 1, 2014

4844_image001President Obama met with Indian Prime Minister Narenda Modi for the first time on September 30 to discuss U.S.-India relations.

Although trade issues accounted for a small part of their sessions, Modi reaffirmed India’s position in the struggle to implement the World Trade Organization’s Trade Facilitation Agreement, refusing to back down from his push to shield India’s food security programs from the TFA’s legal challenges. Both leaders were hopeful for a resolution to the impasse but made no firm commitments.

Prior to Modi’s meeting with Obama, USCIB joined other trade associations in signing a letter to President Obama urging the president to prioritize the TFA. The letter underscores the importance of the agreement and notes that India’s actions not only undermine the global trade system, but also call into question the future of WTO multilateral agreements.

“We were hopeful that during the Prime Minister’s visit, progress would have been made on the current impasse with India,” said Kristin Isabelli, director of customs and trade facilitation at USCIB. “It is vital that a path forward is found for the future and credibility of the WTO.”

USCIB signed the letter along with the Express Association of America, the National Foreign Trade Council and the National Association of Manufacturers.

WTO members signed on to the TFA last December as part of a package of trade reforms agreed to at the Bali ministerial. Once adopted, the TFA would streamline global customs procedures, committing developing and least developing countries to facilitate imports with aid from the developed world. The agreement is also estimated to add $1 trillion to the global economy and create 18 million jobs in developing countries. India stunned the international community when it blocked implementation of the TFA in July as it sought to leverage new concessions on food subsidies. WTO members have since failed to resolve the stalemate.

“With an agreement that would create millions of jobs and specifically help least developing countries and developing countries, it is highly disappointing that progress couldn’t be made on finding a solution to this impasse with India,” said Isabelli.

Read the letter.

Staff contact: Rob Mulligan and Kristin Isabelli

More on USCIB’s Trade and Investment Committee
More on USCIB’s Customs and Trade Facilitation Committee

ICC Brings Antitrust Compliance Advocacy to China and Brazil

Published on September 30, 2014
ICC updates Chinese agencies on its antitrust compliance and advocacy work.
ICC updates Chinese agencies on its antitrust compliance and advocacy work.

With the rapid growth of antitrust legislation around the world in recent years, many businesses struggle to comply with laws that punish anticompetitive behavior. To help companies embed a culture of compliance within their operations, last year the International Chamber of Commerce issued its Antitrust Compliance Toolkit, which provides tools and advice for companies of all sizes seeking to create or strengthen an antitrust compliance program.

In August 2014, ICC met with competition authorities in China and in Brazil to discuss the toolkit and related compliance advocacy. To date, ICC has unveiled the toolkit through workshops in several countries, including the United States.

The ICC Commission on Competition gathers over 300 competition law experts from 40 countries. The commission launched the Task Force on Antitrust Compliance and Advocacy in 2011, an initiative that has developed practical toolkits on antitrust compliance and contributes to deepening the discussion and thought leadership with all stakeholders.

ICC Meets Competition Authorities in China

In China, the ICC Task Force on Compliance and Advocacy met with several Chinese agencies, accompanied by a delegation of ICC corporate members and representatives from ICC China and from the University of International Business and Economics of Beijing. Anne Tubbs, co vice-chair of the task force, said “ICC is delighted by the very positive welcome it received and the level of interest Chinese agencies showed in the Toolkit and related compliance advocacy work.”

Tubbs noted that the Chinese government is aware of the challenges companies face in mitigating compliance risks through internal controls. “A proactive focus on compliance, as a means of preventing anti-competitive conduct, can help embed a strong compliance culture across all markets, to the ultimate benefit of consumers,” she said. “ICC will continue to explore means of contributing to such efforts in China with assistance from local experts and advocates.”

Tubbs noted that the Chinese government is aware of the challenges companies face in mitigating compliance risks through internal controls. “A proactive focus on compliance, as a means of preventing anti-competitive conduct, can help embed a strong compliance culture across all markets, to the ultimate benefit of consumers,” she said. “ICC will continue to explore means of contributing to such efforts in China with assistance from local experts and advocates.”

The Chinese agencies – which included the Anti-Monopoly Bureau of the Ministry of Commerce, the national Development and Reform Commission, and the State Administration for Industry and Commerce – invited ICC to prepare a Chinese version of the Antitrust Compliance Toolkit and to remain in close contact for the future launch of such materials, as well as other initiatives including the development of guidance tailored to SMEs.

ICC Participates in High-Level Seminar on Compliance Law in Brazil

Hosted by the Center of Social and Economic Law Studies and the Brazilian Administrative Council for Economic Defense (CADE), ICC participated in a seminar from August 28-29 in Sao Paulo to address competition law and policy and corporate compliance initiatives. The event brought together legal experts and representatives from the private sector, competition authorities, and national and international organizations.

Both private sector and agency speakers recognized the ICC Antitrust Compliance Toolkit as an invaluable benchmark for corporate compliance initiatives, serving the antitrust community worldwide. Much attention was also given to SMEs, noting that they deserve particular consideration as limited resources make it harder to develop and embed a successful competition culture. Simone Pieri, one of the contributors to the ICC Antitrust Compliance Toolkit, announced at the seminar that ICC will soon be rolling out an SME version of the toolkit.

As for the promotion of a competition culture, it was acknowledged that companies and lawyers have an important role to play. Speakers stressed that competition agencies should also promote competition culture through their decisions. The need to promote the globalization of competition compliance legislation and build international consensus and coherence on how to treat compliance programs garnered considerable attention from participants.

Staff contact: Rachel Spence

More on USCIB’s Competition Committee

USCIB Issues Statement on China’s WTO Commitments

Published on September 30, 2014

4847_image002The economic relationship between the United States and China is both vital and complex, and U.S. business holds an important stake in this relationship’s success. China’s emergence as one of the world’s largest economies means that its policies have a direct impact on its trading partners.

American engagement and exchange of best practices with the Chinese government and business community have proven to be a productive approach to addressing both countries’ common challenges and responsibilities.

Since China joined the World Trade Organization in 2001, the United States Trade Representative is required to submit a yearly report to Congress on China’s compliance and commitments to its WTO accession. USCIB submitted a statement to USTR providing member feedback, comments and recommendations on Chinese compliance with WTO commitments.

USCIB commends the U.S. and Chinese governments for positive and consistent work in ongoing bilateral dialogues, as well as the significant efforts China has made since joining the WTO to meet its obligations under the terms of its accession agreement. However, there still remain general WTO obligation compliance concerns. Broad concerns are listed below, excerpted from USCIB’s statement.

China’s Antimonopoly Law

Chinese authorities are using a variety of policy tools, which include technology standards, antitrust rules and intellectual property policies to protect and promote Chinese companies. USCIB members urge the U.S. government focus more on this issue and its effects on U.S. companies.

Intellectual Property Rights

While USCIB members acknowledge improved IPR laws and combating of IPR violations in China, there continue to be major concerns across industry sectors such as in audiovisual, software, agricultural biotechnology and chemicals. USCIB members urge the U.S. to continue to press for increased protection of IPR through better coordination and enforcement by Chinese authorities.

National Treatment

USCIB members continue to call on China to abide by their WTO commitments of national treatment and non-discrimination and ensure a competitive market that allows for foreign business participation.

Regulatory Environment

USCIB members expect Chinese authorities to fairly and transparently develop, promulgate and enforce regulations and other legal norms. However, USCIB members continue to experience business obstacles related to institutions, frameworks and regulatory enforcement. Improved coordination among regulators in China would benefit USCIB member companies by creating a more transparent and predictable framework.

State-Owned Enterprises

As they increasingly compete with Chinese SOEs, both in China, third markets and in the United States, companies believe that it is critical that the U.S. government use all available tools in dialogues with China and in other forums to press for level playing fields as they compete with these entities globally.

Staff contact: Justine Badimon

More on USCIB’s China Committee

Coalition for Green Trade Hosts Environmental Goods Agreement Launch Event on Capitol Hill

Published on September 19, 2014
4837_image002
Ambassador Michael Froman speaks about the Environmental Goods Agreement as Senator Wyden and Congressman Blumenauer look on.

On September 17, 2014, the Coalition for Green Trade, co-chaired by the United States Council for International Business (USCIB), the National Association of Manufacturers (NAM) and the National Foreign Trade Council (NFTC), hosted an event on Capitol Hill to celebrate the launch of Environmental Goods Agreement (EGA) negotiations under the purview of the World Trade Organization (WTO) in Geneva.

The event featured comments by United States Trade Representative Ambassador Michael Froman, Senate Finance Committee Chairman Ron Wyden, House Ways and Means Committee Chairman Representative Dave Camp, and Representative Earl Blumenauer.

Chairman Wyden opened the event by saying, “[a]n ambitious environmental goods deal that brings down tariffs could make a real difference for American companies, American workers, and for the planet.”  He expressed support for the EGA initiative, noting that “with hard work by Ambassador Froman and his team,” the global economy and the environment can each benefit from the agreement soon.

Ambassador Froman said that by facilitating trade in environmental goods, “we can promote technologies that allow better access to safe water, sanitation, and clean energy. We can encourage countries to adopt strategies for sustainable development and help drive innovation that could lead to even cleaner technologies.” He also explained that the EGA represents an effort to simultaneously grow the global economy and protect our environment. “When it comes to defending our environment, protectionism is no protection.”

The Coalition co-chairs introduced the various speakers and provided their own comments in support of these important negotiations. Rob Mulligan, USCIB’s senior vice president for policy and government affairs emphasized the hope for a swift outcome and an agreement that will serve as a platform to spur technological innovation. “The support of the business community in these negotiations is crucial to ensure an ambitious agreement that captures the full range of environmental technologies and products,” he said, noting that some of those products were on display at the back of the room.

General Electric, for example, displayed information on their E- and F-class gas turbines which convert natural gas into power in plants all over the world.

He also introduced two industry representatives: Timothy J. Regan, senior vice president of worldwide government affairs at Corning, and Joe McSwiney, president of Cascade Designs, who presented their respective technologies that stand to benefit from a successful agreement.

For further information on the EGA, please read USTR’s Fact Sheet. For further information regarding USCIB’s efforts on the EGA, please contact Eva Hampl, Director, Investment, Trade and Financial Services.

More on USCIB’s Trade and Investment Committee

Realize TFA Benefits Without Delay ICC Tells Trade Negotiators

Published on September 18, 2014

4834_image002The International Chamber of Commerce (ICC) is appealing to trade negotiators, reconvening this week in Geneva, to find a way forward to implement the World Trade Organization’s Trade Facilitation Agreement (TFA) following the breakdown in talks in July.

Terry McGraw, ICC and USCIB chairman, said: “We urge WTO members to bridge the gap necessary to get the Trade Facilitation Agreement in place. There is no logic in delaying implementation of a deal that could add a possible $1 trillion to global GDP—generating millions of jobs in the process.”

July’s missed deadline came as a huge disappointment to the global business community, but ICC has emphasized that a deal is still possible in the weeks ahead.

McGraw added: “Despite the procedural impasse, we are still seeing many developing economies pressing ahead with plans to implement the agreement. This progress should not be forgotten and should drive momentum to make further progress in the coming weeks.”

An essential tool to boost cross-border SME sales

In a recent letter to trade ministers, ICC pointed out that trade facilitation reforms will enable many companies to trade internationally for the first time, particularly as the Internet opens up new market opportunities for small and medium-sized enterprises to connect with customers across borders.  Indeed, research suggests that improved border and customs measures could trigger a 60-80 percent increase in cross-border SME sales in some economies.

John Danilovich, ICC secretary general, said: “In the case of India, these benefits are especially clear. To take just one example, it is estimated that Indian companies currently suffer a 30 percent cost disadvantage compared to Chinese firms when shipping garments to the United States due to port and customs inefficiencies.”

Danilovich added: “Implementation of the TFA would place Indian firms on a much more even footing in the global marketplace—enabling many companies, particularly small enterprises, to trade internationally for the very first time.”

Opening the way for food security talks

Within the ongoing negotiations, the international business community fully recognizes the importance of reaching an agreement on the food security commitments contained in the Bali package.

“It is ICC’s view that legal adoption of the TFA would provide a conducive environment within the WTO to conclude a workable agreement on this vital issue in the coming months. Importantly, this would allow for discussions on remaining aspects of the post-Bali trade agenda,” said Danilovich.

“The TFA itself offers the potential to address related food security issues in view of provisions to ensure that perishable goods receive expedited clearance at borders.  These hard-won provisions—which would benefit many of the world’s poorest—risk being lost indefinitely if adoption of the TFA is deferred or delayed,” he added.

ICC has pledged unfaltering commitment to a strong, rules-based multilateral trading system embodied by the WTO and is dedicated to ensuring that global business plays an active and constructive role in working with WTO members to help strengthen WTO rules and adapt them to the needs of 21st century trading.

Staff contact: Robert Mulligan

More on USCIB’s Trade and Investment Committee

More on USCIB’s Customs and Trade Facilitation Committee

USCIB Urges Congress to Clear Ambassador Backlog

Published on September 15, 2014

American business leaders appreciate the support of United States embassies on commercial, investment and trade matters. U.S. business is concerned with the current backlog of ambassadorial nominees, since those embassy vacancies represent lost opportunities for American business and investment abroad.

USCIB joined the American Foreign Service Association, the Business Council for International Understanding and the International Stability Operations Association in signing a letter to Senate leaders urging them to swiftly confirm the career members of the Foreign Service for the ambassador positions for which they have been nominated. As of today, 37 career nominees for ambassadorships are awaiting confirmation in the Senate. USCIB and its partners called on the Senate to confirm all career nominees before they recess for mid-term elections.

Read the letter to Senate leaders.

Staff contact: Shaun Donnelly

More on USCIB’s Trade and Investment Committee

USCIB Rolls Out ICC Antitrust Toolkit in the United States

Published on September 9, 2014
(L-R) Anne Riley (Shell), Brent Snyder (U.S. Department of Justice), John Taladay (Baker Botts), Jennifer Patterson (Kaye Scholer LLP)
(L-R) Anne Riley (Shell), Brent Snyder (U.S. Department of Justice), John Taladay (Baker Botts), Jennifer Patterson (Kaye Scholer LLP)

Antitrust laws – which are designed to control anti-competitive practices such as price-fixing and dividing markets – have proliferated rapidly around the world in recent years, reflecting society’s increasing ethical expectations about the governance of business conduct. Managing the growth of these legal compliance requirements is challenging for all businesses without the right tools to foster a compliance culture.

Designed by business for business, the ICC Antitrust Compliance Toolkit provides valuable guidelines for small and medium sized enterprises (SMEs) and larger companies wishing to build or reinforce a robust compliance program.

On September 9, USCIB and the International Chamber of Commerce co-sponsored a program for the official rollout of ICC’s Antitrust Compliance Toolkit. The Compliance Toolkit received acclaim in many jurisdictions and has been unveiled in 8 other countries: Austria, Belgium, Canada, France, Malaysia, Netherlands, Switzerland and the United Kingdom. Hosted by Kaye Scholer in New York City, the U.S. event featured keynote speaker Brent C. Snyder, deputy assistant attorney general for criminal enforcement at the antitrust division of the U.S. Department of Justice.

The following antitrust experts also served as panelists during the event: John M. Taladay, partner at Baker Botts and chair of the USCIB Competition Committee, Anne Riley, group antitrust council at Shell International, Charles Webb, senior director of international antitrust compliance at Wal-Mart, Aimee Immundo, senior counsel of competition law and compliance at General Electric, Scott Hemphill, law professor at Columbia Law School, and Jennifer Patterson, partner at Kaye Scholer LLP and vice chair of the USCIB Competition Committee.

Participants discussed the importance of business executives committing to a solid and credible antitrust compliance program, regardless of the company’s size. Following Snyder’s keynote address, Riley presented the ICC Antitrust Compliance Toolkit. Attendees then participated in a case study exercise designed to assess the anticompetitive risks of a hypothetical company in three different jurisdictions. The event concluded with a panel discussion on corporate compliance programs, with input from USCIB members.

Keynote speaker Brent Snyder (DOJ) explained that the purpose of having an effective compliance program is to be a responsible corporate citizen.
Keynote speaker Brent Snyder (DOJ) explained that the purpose of having an effective compliance program is to be a responsible corporate citizen.

“Effective Compliance Programs Prevent Antitrust Violations”

As the Department of Justice’s top authority responsible for antitrust laws against cartels, Brent Snyder gave keynote remarks about the importance of crafting an effective antitrust compliance program that prevents violations from happening in the first place. He stressed that a business’s senior management must be committed to antitrust by cultivating a culture of compliance within the organization. CEOs must lay the foundation for a corporate culture of compliance in order for such a program to work.

“The best way to stop a crime is to stop it before it happens,” said Snyder. “Effective compliance programs prevent antitrust violations.”

Snyder noted that the consequences for violating antitrust laws are severe, and that businesses should be aware of the liabilities at stake if an employee breaks antitrust laws. He said that businesses need to be proactive about their compliance programs and that they should pay special consideration to how they approach violators.

He concluded by urging businesses not to think about compliance programs as a “stick” or as a punishment. Rather, “the purpose of having an effective compliance program is to be a good and responsible corporate citizen.”

Snyder explained that the consequences of ineffective antitrust compliance are within the company’s power to control. To that end, the ICC Toolkit is a valuable resource.

“They’re very good tools,” Snyder said about the toolkit. “They’re excellent.”

ICC AntitrustICC Antitrust Compliance Toolkit

The ICC Toolkit, presented at the event by Riley, offers useful guidelines for businesses big and small on how to create an antitrust compliance program and how to strengthen an existing program.

“What this is about is behaving ethically and doing business ethically,” she explained.

The toolkit also covers the importance of getting senior management to support the compliance program, and suggests that a company’s antitrust officers consult with finance departments to help identify areas where there is legal risk of antitrust violations.

Riley noted that “compliance know-how” is a must for business executives, and that companies should make clear why it is in their interest to champion and comply with antitrust rules. All businesses need a consistent, ongoing commitment to compliance from both management and employees, she concluded.

The ICC Toolkit is available for download in English and French at the ICC website. It will soon be translated into several other languages as well.

(L-R) Aimee Immundo (General Electric), Scott Hemphill (Columbia Law School), Charles Webb (Wal-Mart)
(L-R) Aimee Immundo (General Electric), Scott Hemphill (Columbia Law School), Charles Webb (Wal-Mart)

Corporate Compliance Programs

Following a case study exercise that asked participants to assess a hypothetical company’s anticompetitive legal risks, the event concluded with a panel discussion about corporate compliance programs. Panelists included Charles Webb, senior director of international antitrust compliance at Wal-Mart, Aimee Immundo, senior counsel of competition law and compliance at General Electric and Scott Hemphill, law professor at Columbia Law School.

Webb explained that large corporations like Wal-Mart are interested in knowing how to implement “a world class antitrust program,” and he used the ICC Toolkit to that end.

Immundo stressed that the human aspect of compliance is hugely important but difficult to quantify. She warned that people have gone to jail for antitrust violations and that it is crucial for businesses to carefully monitor their horizontal relationships so that executives don’t wander into potentially dangerous anticompetitive territory with their peers.

A recurring theme throughout the event was that it is challenging to get business people interested and fired up about antitrust compliance. Hemphill suggested that companies provide vivid examples to employees about the personal risks and consequences of violating antitrust rules. He lauded the ICC Antitrust Toolkit for helping to generate interest in compliance.

Staff contact: Justine Badimon

More on USCIB’s Competition Committee

Register for ICC’s Banking Supply Chain Summit

Published on September 5, 2014

4825_image002Given the volatile economic climate in the wake of the financial crisis, innovations in working capital flows are more vital than ever before. That is why USCIB and its global network are focusing on the establishment of new financial solutions that will enable companies to maintain a resilient supply chain.

USCIB invites you to join a gathering of the world’s leading supply chain finance experts for timely and thoughtful discussions about the forces driving change in trade finance.

ICC’s 3rd Annual Supply Chain Financing Summit
October 22-23, 2014
Maison des Arts et Métiers
Paris, France

 
This summit will provide an opportunity for large and small companies to learn from experienced global professionals about their visions and strategies in the new area of supply chain finance. Topics of discussion include streamlining of trade finance operations, the changing landscape from the BPO (bank payment obligations) perspective, the impact of the regulatory environment, dealing with logistical hurdles, and more. The chair of USCIB’s Banking Committee, Michael Quinn (JP Morgan), will speak at a panel titled “BPO: From Conception to Adoption.”

In addition, prior to the summit on October 21, participants will have the chance to take part in a web-based simulation game where they’ll learn to balance the constraints and manage the interdependencies of the physical and financial supply chain.

USCIB members may register online for the event at a discount by entering the code USA-9262.

Staff contact: Eva Hampl

More on USCIB’s Banking Committee