Great Opportunities Ahead for G20

Published on May 12, 2014

Delivering an update on B20 task force work to a meeting of ICC G20 CEO Advisory Group deputies in Paris last week, Robert Milliner, Australia’s B20 Sherpa, said that the G20 was starting to recognize business issues and that great opportunity lay ahead thanks to agreement among all G20 leaders that economic growth and job creation were their key drivers. The way forward now, he said, was to refine work to provide even more specific recommendations to G20 leaders.

Speaking to the representatives of business leaders from major corporations at ICC’s global headquarters, Milliner said that ICC’s B20 role was important to building a continuity framework, as presidency changes from year to year, and expressed appreciation for the experience ICC brings to the process. Milliner went on to outline B20 progress and gave an overview of plans for the G20 Summit, set to take place this July in Sydney ahead of the G20 leaders’ summit later in the year.

Click here to read more on ICC’s website.

Staff contact: Rob Mulligan

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Robinson Talks Trade and Investment at OECD Forum

Published on May 7, 2014

USCIB President and CEO Peter Robinson with Sharon Burrows, general secretary of the International Trade Union Confederation.

Trade and investment have become more intertwined, reinforcing and interdependent, USCIB President and CEO Peter Robinson told the annual OECD Forum in Paris on Tuesday, stressing the importance of global value chains and the need for smarter policies to foster FDI – and the growth and jobs it creates.

Robinson took part in a panel discussion moderated by Shawn Donnan of the Financial Times on the new realities of cross-border trade, including the development of highly integrated global value chains where various stages of R&D, production and distribution are scattered across many different countries. The session encouraged debate among panelists and the audience about how to adapt policies to meet the new, interconnected trade and production landscape.

In his remarks, Robinson identified three important trends – the growth of global value chains, the interdependence of trade and investment, and the dangers of protectionist policies such as forced localization and data flow restrictions – as he had highlighted at the BIAC/TUAC pre-Ministerial consultations with the OECD and the Japanese last month in Tokyo. He called for policies that acknowledge that the world of trade has shifted towards global value chains, and noted that the role of foreign direct investment is crucial and should be central to the discussion along with trade.

Other speakers at the Future of Trade panel included Robert Carvalho de Azevêdo, director general of the WTO; James Bacchus of Greenberg Traurig, chair of the Commission on Trade and Investment Policy at the International Chamber of Commerce; Sharan Burrow, general secretary of the International Trade Union Confederation; Tim Groser, New Zealand’s minister of trade; and Tadayuki Nagashima, executive vice president of the Japan External Trade Organization.

Trade and investment are two sides of the same coin, Robinson explained, neither will occur alone. Cross-border trade requires investment as well as investment protection like the investor state dispute settlement to help balance legitimate government needs and dispute resolution.

Robinson also warned that trade barriers are going up behind the border, handicapping the development of integrated global value chains. He encouraged the OECD to continue research on the impact of policies that localize production and content and limit data flows on global value chains.

The business community ideally favors a global approach to trade and investment liberalization, Robinson said. But he noted its encouragement of regional and functional initiatives such as the Trans-Pacific Partnership (TTP), the Transatlantic Trade and Investment Partnership (TTIP), and the Trade in Services Agreement and leveraging where possible those plurilateral or bilateral coalitions of the willing into multilateral ones. Robinson also thanked the OECD for its high-quality work on trade analysis, such as Trade in Value Added.

The OECD Forum takes place each year around the OECD’s ministerial council meeting, which this year focused on “Resilient Economies and Inclusive Societies.” A high-level United States delegation participated in the OECD ministerial, advancing efforts to level the playing field for American businesses and promoting a more open and outward-oriented OECD. The delegation included U.S. Trade Representative Michael Froman, Council of Economic Advisors Chairman Jason Furman and the new U.S. ambassador to the OECD, Daniel Yohannes.

Staff contact: Rob Mulligan

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Business Groups Line Up to Support Global Investment In American Jobs Act

Published on May 6, 2014

A Nissan Rogue rolls off the assembly line at Nissan’s Smyrna, Tenn. plant in October 2013, the 10 millionth vehicle produced at the facility.

USCIB joined the Organization for International Investment and a number of other trade associations last week in sending a letter to Senate Majority Leader Harry Reid and Minority Leader Mitch McConnell promoting the Global Investment in American Jobs Act of 2013 (S. 1023/H.R. 2052).

H.R. 2052 passed the House of Representatives in September 2013, and was approved by the Senate Committee on Commerce, Science and Transportation on April 9 of this year. Last week’s coalition letter urges Senators Reid and McConnell to take swift action on the bill. It follows a letter to the U.S. House of Representatives in July 2013, and one to the U.S. Senate in September 2013, constituting the third such effort in which USCIB has been involved.

“Foreign direct investment (FDI) is vital for American jobs and economic growth,” said Shaun Donnelly, USCIB’s vice president for investment and financial services. “In order to remain globally competitive and attractive to foreign investors, the United States should undertake the measures provided for in this bill.”

According to Donnelly, inward FDI brings not only needed capital but also technology, innovation and access to foreign markets. He said USCIB was pleased to see progress on the Global Investment in American Jobs Act of 2013, and would continue to push for its passage.

Staff contacts: Shaun Donnelly and Eva Hampl

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At Japan Consultation Business Calls for Bold Action to Support Private Sector-Led Growth

Published on April 18, 2014

Renewed Focus on Investment Urged

USCIB and its partners in BIAC have urged the OECD to sharpen its focus on policies affecting cross-border investment. An April 17 letter from BIAC Secretary General Bernhard Welschke to OECD Secretary General Angel Gurria reflected on recent high-level BIAC-OECD discussions of FDI.

Welschke wrote that “business observes a proliferation of restrictions on foreign direct investment, often hidden and difficult to counter.” He said the OECD must continue to serve as a champion of cross-border investment – and the jobs and growth it spurs.

Other examples of the renewed focus on investment issues include the January annual BIAC Executive Board meeting with OECD ambassadors, where Charles Heeter, BIAC’s U.S. board member, played a lead role, and USCIB President and CEO Peter Robinson’s participation at the Tokyo consultation (see main article).

At an April 8 consultation in Tokyo, the Business and Industry Advisory Committee to the OECD (BIAC) called on the Organization for Economic Cooperation and Development (OECD) and on the government of Japan to promote policies that facilitate open and efficient markets and lead to more sustainable growth.

BIAC, representing the leading business organizations in OECD countries, pointed to the importance of trade and investment as major engines of the world economy.

“We are at a crossroad for our economies and business,” said BIAC Chair Phil O’Reilly, the chief executive of Business New Zealand.

“Much has been said about ways to distribute income and wealth in our societies, but not enough concerning the question how we better encourage entrepreneurship, investment, and employment. We are prepared to support an OECD agenda that will promote structural reforms in OECD countries to strengthen the resilience of our economies and societies.”

BIAC Vice Chair Katsutoshi Saito, chairman of Dai-Ichi Life Insurance Company, underlined the need for a “more coordinated approach to financial regulation that is conducive to economic growth, financial stability and investment.”

USCIB President and CEO Peter Robinson said: “Implementation of the WTO Bali package is pivotal to strengthening international trade. The challenge for 2014 and beyond will be for governments to develop policies that reflect the needs and realities of the contemporary trade environment. The OECD has an important role to play in providing the economic analysis on global value chains that illustrate the positive impact of trade policies for our economies and societies.”

Staff contacts: Rob Mulligan and Shaun Donnelly

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Washington Update: February – March 2014

Published on April 3, 2014

Washington Update: February – March 2014

With everyone in Washington, DC looking forward to spring as we exit from an especially cruel winter, we wanted to report on USCIB’s recent activities in our nation’s capital. It has been an especially busy period for us as we advocate for sensible policies to promote trade, cross-border commerce and a seat at the table for business.

Highlights include:

a high-level conference on Internet and ICT policy issues, organized with the OECD and BIAC
discussions with top trade policy officials from the Hill and USTR on a range of US trade talks
a mission to Europe to build support for the Transatlantic Trade and Investment Partnership and explain U.S. business views
a meeting with FTC Chair Ramirez to discuss competition policy
and much more.

Download the full update.

Washington Update: February to March 2014

Published on April 1, 2014

During the months of February and March 2014, USCIB staff arranged meetings for members with Angela Ellard, House Ways and Means, and Chris Wilson, USTR Geneva; traveled to France and Holland to brief government and business groups on U.S. business TTIP views; organized a conference in Washington, DC with the OECD on Internet governance and privacy issues; hosted a meeting in Washington, DC for the OECD Director for Tax, Pascal Saint-Amans; had the FTC Chair Ramirez address the Competition Committee; represented USCIB and ICC at the Word Customs Organization; and much more.

Download the full update.

USCIB Weighs in on the Effect of TTIP on the Global Fashion Industry

Published on March 18, 2014

L-R: Arthur Bodek (Grunfeld, Desiderio), Justine Badimon (USCIB), Maristella Iacobello (PVH Corp.), Steve Lamar (American Apparel & Footwear Association)

Justine Badimon, USCIB’s director of regional initiatives, spoke to students, faculty and stakeholders at the Fashion Institute of Technology (FIT) on March 13 regarding the current status and backdrop of the Transatlantic Trade Investment Partnership (TTIP).

A TTIP agreement is anticipated to be a comprehensive high-standard trade and investment agreement between the U.S. and the EU that will support U.S. jobs and international competitiveness.

“Regulatory differences will be a major stumbling block for the negotiations, but USCIB anticipates seeing improved regulatory cooperation in a successful outcome,” Badimon said. She discussed the negotiators’ uncertain timeline for a conclusion of the agreement, indicating that European parliamentary elections in May and a new European Commission taking office in November will likely draw out the talks.

Badimon sat on a panel of industry experts, discussing the effects of TTIP on the global fashion industry through the scope of international business. The panel was co-sponsored by the European American Chamber of Commerce and FIT’s Department of International Trade and Marketing. Other speakers included experts from the American Apparel & Footwear Association, PVH Corp. and Grunfeld, Desiderio Lebowitz Silverman & Klestadt LLP.

The timely event coincided with the fourth round of U.S.-EU trade talks in Brussels from March 10-14, where TTIP negotiators continued deliberations on market access, regulation and rules, with a focus on benefits for small- and medium-sized enterprises (SMEs). During the presentations, panelists gave an overview of the challenges facing negotiations, especially those affecting the fashion industry such as convergence on regulation of labeling, rules of origin, chemical management and product safety standards.

Staff contact: Justine Badimon

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ICC Sees Progress on G20 Agenda Opportunities Ahead

Published on March 7, 2014

Overall, the scorecard rates G20 responsiveness to business priorities as better than the two earlier scorecards.

The G20 has made steady progress on business goals since 2011, according to the latest G20 Business Scorecard, published by the International Chamber of Commerce (ICC). The third installment of the annual scorecard reveals a year-on-year improvement in score since ICC”s monitoring began, while still noting that progress remains poor in several crucial areas, including energy and the environment.

“The G20 continues to make progress on a robust agenda to accelerate economic growth and job creation,” said ICC Chairman Terry McGraw, chairman of McGraw Hill Financial [now S&P Global] and also chairman of USCIB. “The business community is committed to working together with policy makers on issues of critical importance such as trade and investment that can produce job growth and long-term prosperity.”

Among the positive outcomes that led to this year’s higher score was the G20 support for the historic World Trade Organization Agreement on Trade Facilitation and the extension of the G20 standstill on protectionist measures until the end of 2016. The improvement in score also reflected G20 efforts to increase access to finance for small and medium businesses and the recognition of business as a key partner in the fight against corruption.

But the positive overall trend also masked deficiencies in individual categories. Among the lows was the failure to recognize the importance of information and communication technologies (ICTs), no movement on carbon pricing and a lack of discussions on a high-standard multilateral framework for international investment.

The scorecard – which rates the overall responses by G20 nations to key business goals during the 2013 Russian presidency – measures progress on business priorities on a scale of: “inadequate,” “poor,” “fair” or “good.” The scorecard looks at the G20”s collective response to business goals only and does not rate individual countries or the G20”s entire agenda. Four areas are assessed: Trade and Investment; Financing for Growth and Development; Energy and Environment; and Anti-Corruption.

A fifth chapter, Job Creation and Human Capital, was prepared in partnership with the International Organization of Employers (IOE) and the Business and Industry Advisory Committee to the OECD (BIAC). This chapter examines the steps taken by the G20 to address global unemployment but does not rate its progress at this stage.

USCIB 2014 Policy Agenda

Published on March 6, 2014

USCIB has officially released our 2014 Policy Advocacy Priorities, outlining our commitments to representing members in a broad range of policy areas and in a wide array of international organizations. USCIB’s policy priorities fall into four cutting-edge categories: growth, jobs and open markets; competitiveness and innovation; business and society; and sustainable development and resource management.

Rob Mulligan, USCIB senior vice president of policy and government affairs, explained that USCIB’s focus is on creating and maintaining a global business climate that considers today’s economic realities. “We strive to promote policies that strengthen our members’ access to global value chains, that take advantage of emerging technologies and new markets, and that reflect business’ responsibility to human rights and the environment,” he said.

Mulligan added: “We are pleased that our policy priorities are in line with the President’s newly-released U.S. trade agenda and the priorities of our affiliate organizations, like the International Chamber of Commerce.”

USCIB is eager to see progress both at home, on issues like Trade Promotion Authority, and abroad, in initiatives such as the UN Post-2015 Sustainable Development Goals and the OECD’s Base-Erosion and Profit-Shifting tax project. Members of USCIB’s policy staff are excited to build momentum in these and other areas, in order to maintain American business leadership in the global economy.

Staff Contact: Rob Mulligan

USCIB Competition Committee Leadership Transition

Published on February 26, 2014

It was the end of an era at the February 20 meeting of USCIB’s Competition Committee in Washington, D.C., as longtime Chair Michael Blechman (Kaye Scholer) and Vice Chair Jim Rill (Baker Botts), stepped down and passed the baton to new Chair John Taladay (Baker Botts) and Vice Chair Jennifer Patterson (Kaye Scholer).

Handing off the reins at USCIB’s Competition Committee (L-R): Jennifer Patterson (Kaye Scholer), John Taladay (Baker Botts), Michael Blechman (Kaye Scholer), Jim Rill (Baker Botts), Rob Mulligan (USCIB)

Blechman and Rill, who have been esteemed and productive leaders of the committee for 20 years, said it has been a great pleasure to work together. Rob Mulligan, USCIB’s senior vice president for policy and government affairs, marked the leadership transition by recognizing Blechman and Rill’s contributions and welcoming Taladay and Patterson. USCIB looks forward to working with the new Competition Committee leadership and to continuing the committee’s high-quality work.

Taladay is currently the vice chair of the Competition Committee at BIAC, the Business and Industry Advisory Council to the OECD, a lead drafter on consultations and responses to the OECD’s Competition Committee, and a non-governmental advisor to the International Competition Network.

Patterson co-chairs the International Chamber of Commerce’s Task Force on Due Process, and also serves as a non-governmental advisor at the International Competition Network. Taladay and Patterson will work with all members to ensure that USCIB’s Competition Committee remains an active and engaged forum for dialogue, puts forth strong messaging on important antitrust issues and coordinates with USCIB’s partner organizations.

The committee was also honored to host Chairwoman Edith Ramirez of the U.S. Federal Trade Commission for remarks over lunch regarding the global policy direction of the FTC’s antitrust activities and her recent meetings with officials from China’s antitrust agencies.

Staff contact: Justine Badimon