Alice Slayton Clark Archives

IOE Hosts Digital Conference of COVID Impact on Global Trade, Supply Chains, Employment

Published on April 9, 2020

The International Organization of Employers’ (IOE) hosted a digital conference on the impact of COVID-19 on global trade, supply chains and employment on April 8. The conference addressed the “pause button” placed on the global economy in efforts to limit the spread of the COVID-19 pandemic and endeavored to answer questions such as: whether trade activities will return to normal, how many jobs will be lost, whether companies can continue producing and whether global production chains will be revamped after the crisis.

USCIB Senior Director, Investment Trade and Financial Services Eva Hampl participated as a speaker.

In her comments, Hampl emphasized the importance of maintaining an open trade and investment climate, pointing to these conditions as being necessary to rebuild the economy post crisis.

“USCIB is working with our various partners and affiliates to develop policy that looks toward addressing the current problems, but also retaining the structures that work, and rebuilding those that were affected by the crisis,” said Hampl. “Right now the global economy is still in triage and international cooperation is key at this moment. High level statements like the G20 leaders’ statement committing to work with the World Health Organization (WHO), International Monetary Fund (IMF), World Bank, United Nations and others to address the crisis, or the World Trade Organization (WTO) and World Customs Organization (WCO) coming together in a joint statement pledging to work together to facilitate trade in essential goods such as medical supplies, food and energy, are necessary and welcome to business at this time. As the global economy deals with this crisis and looks to rebuilding, business will be a key driver and partner of the recovery process.”

G20 Trade Ministers Release Statement on COVID-19

Published on April 2, 2020

The G20 Trade Ministers met virtually on March 30 amid the COVID-19 pandemic to discuss stepping up cooperation and coordination to protect human life and lay the foundations for a strong economic recovery and a sustainable, balanced and inclusive growth after the crisis. Following the meeting, the Trade Ministers posted a statement.

The statement emphasized: “As we fight the pandemic both individually and collectively and seek to mitigate its impacts on international trade and investment, we will continue to work together to deliver a free, fair, non-discriminatory, transparent, predictable and stable trade and investment environment, and to keep our markets open.”

USCIB Senior Vice President Rob Mulligan noted the significance of all G20 members being able to agree on this statement as a much-needed coordinated response to the crisis and is hopeful that governments will soon follow up with more specific action items they will implement to keep trade open and facilitate the flow of essential goods for dealing with the COVID-19 crisis.

In advance of the G20 Trade Ministers meeting, the International Chamber of Commerce (ICC) sent a letter from its Secretary General John Denton, which included ten concrete actions that trade ministers can take now to speed up the health response for COVID-19 and minimize the economic damage.  It also included points on the need to maintain momentum on World Trade Organization (WTO) reform and e-commerce negotiations.

USCIB Concerned Over Draft “Buy American” Executive Order

Published on April 2, 2020

USCIB joined a broad group of national trade associations, as well as state and local organizations, to send a letter to U.S. Department of the Treasury’s Steven T. Mnuchin, U.S. Trade Representative (USTR) Robert Lighthizer, the U.S. Department of Commerce’s Wilbur Ross and the National Economic Council’s Lawrence Kudlow expressing concern over the Administration’s draft “Buy American” executive order.

The group believes that such an order could be counterproductive in the Administration’s ongoing efforts with American allies to respond to the COVID-19 pandemic and warns that the order may delay the discovery of a COVID-19 vaccine and other treatments, worsen shortages of critically-needed medicines and medical products, and undermine prospects for economic recovery.

The letter states: “Now more than ever, U.S. industries require access to international supply chains to produce critically-needed medical products. The United States simply does not produce all of the raw materials or intermediate goods that are essential to drug development or production of the medical equipment needed to thwart this pandemic. Preventing federal agencies from sourcing medical equipment and pharmaceutical ingredients from abroad — or that are made with non U.S. inputs — would only exacerbate the supply shortages racking the United States.”

The coalition also applauded the Administration’s focused response to the pandemic and emphasized that American companies will do whatever it takes to support America’s pandemic response and will continue to work hand in glove with government to get the job done.

USCIB Comments on Draft Vertical Merger Guidelines

Published on March 26, 2020

USCIB submitted comments recently on the Draft Vertical Merger Guidelines announced in January by the U.S. Federal Trade Commission (FTC) and the U.S. Department of Justice (DOJ).

In the submission, USCIB indicated that members understand the tremendous procompetitive benefits and efficiencies that can be associated with vertical mergers.

“Our members value transparency and predictability in vertical merger enforcement policy and welcome the agencies’ joint effort to clarify the analytic framework and methods they employ to review vertical mergers,” said USCIB Senior Director for Investment, Trade and Financial Services Eva Hampl. “USCIB applauds the agencies for proposing draft vertical merger guidelines based on the well-established economics of vertical relationships and grounded in the consumer welfare standard.”

The comments are intended to support final guidelines that foster transparency and eliminate unnecessary regulatory obstacles to efficient vertical transactions.

USCIB member Lisa Kimmel, Ph.D., senior counsel, Crowell & Moring LLP, was also invited to participate in one of the public workshops announced by the agencies in February. Unfortunately, those workshops which were scheduled to take place this month, were cancelled due to COVID-19 related measures.

USCIB Talks OECD Accession With New US Ambassador to Brazil   

Published on March 25, 2020
Todd C. Chapman

USCIB trade and investment policy staffers Shaun Donnelly and Eva Hampl had an introductory conference call on March 19 with the recently-confirmed new U.S. Ambassador to Brazil Todd Chapman and State Department Brazil Desk Economist Ben Kalt.  Ambassador Chapman, with whom USCIB worked in the past during Chapman’s earlier appointment as U.S. Ambassador to Ecuador, had hoped to meet in person with USCIB staff and member companies but settled for an introductory call in light of COVID-19 precautions.

According to Donnelly, the Ambassador assured USCIB that the Brazil’s Organization for Economic Cooperation and Development (OECD) accession process will be at the top of his policy agenda throughout his assignment in Brazil.

Donnelly and Hampl outlined USCIB’s role in the OECD accession process, serving as the official voice of U.S. business in all OECD matters, directly and as the U.S. affiliate of the Business at OECD (known as BIAC) business coalition on the ground at the OECD.

“We shared our experiences with the OECD, BIAC, the U.S. Government, the government of Colombia and business leaders on Colombia’s recent OECD accession,” said Donnelly. “We discussed possible modalities for embassy-USCIB cooperation throughout the OECD accession process as well as ways both USCIB and the embassy might work most effectively with CNI, which is Brazil’s largest and most influential business organization.”

USCIB has also worked extensively with CNI–as national committee partners in Business at OECD, as well as in the International Chamber of Commerce (ICC), the International Organization of Employers (IOE) and the Major Economies Business Forum (BizMEF) for climate change.

Ambassador Chapman enthusiastically signed up for a meeting with USCIB member companies on one of his early return visits to Washington after he gets settled in Brasilia.

The OECD accession process is a comprehensive, rigorous, and lengthy process, often running three to five years or more, with more than a dozen OECD committees and other bodies each carefully reviewing the candidate country’s laws, regulations, and practices to confirm they are in line with OECD standards.  When all relevant OECD committees and subsidiary bodies are satisfied by the applicant’s “like-mindedness” and commitment to OECD standards, the OECD “Council” of thirty-six ambassadors can formally approve the accession and invite the candidate country to file its binding acceptance of membership.

According to Donnelly, given Brazil’s prominent role in the global economy and, frankly, its history of barriers to foreign goods, services and investments, Brazil’s candidacy will likely attract great interest from OECD member governments and the Business at OECD coalition.  USCIB will be at the head of the line in that business effort.  The Brazil accession case has some important unique aspects, probably most important the strong early endorsement from President Trump personally.

If you have questions, concerns, or recommendations concerning Brazil OECD accession process, please contact Eva Hampl (ehampl@uscib.org) or Shaun Donnelly (sdonnelly@uscib.org).

Hampl Facilitates Discussion on WTO Digital Trade Negotiations

Published on February 25, 2020

World Trade Organization (WTO) members met earlier this month in Geneva for their seventh round of negotiations of a plurilateral agreement on electronic commerce. Negotiations started last year on this critical issue, and there will be two further rounds in Geneva to work toward an outcome by the WTO Ministerial, which will take place in June in Kazakhstan. Following the first round of negotiations this year, USCIB Senior Director for Investment, Trade and Financial Services Eva Hampl moderated a session February 25, in Washington DC around expectations and priorities for the talks leading up to the Ministerial. The panel included representatives from Siemens, IBM, and the office of the U.S. Trade Representative.

“USCIB supports these negotiations to update the WTO’s digital trade framework, including support for a permanent ban on customs duties’ application and other customs processes on electronic transmissions for all WTO members.,” said Hampl. “We are encouraged by progress that was made last year and look forward to a high-standard outcome that includes important issues like data flows and data localization.”

This event was organized by the Association of Women in International Trade (WIIT).

USCIB Urges US Participation in WTO’s Procurement Agreement

Published on February 18, 2020

USCIB joined over twenty industry associations in signing a letter to high-level government officials emphasizing the critical importance of continued U.S. participation in the World Trade Organization (WTO) Government Procurement Agreement (GPA). The letter was sent to United States Trade Representative Robert E. Lighthizer, Secretary of the Treasurer Steven T. Mnuchin, Secretary of Commerce Wilbur Ross, and National Economic Council Director Lawrence Kudlow.

The letter argues that the GPA provides benefits to the U.S. economy, businesses and workforce by empowering the United States to negotiate reciprocal terms under which GPA signatory countries open their government procurement markets to U.S. companies and commit to transparency and procedural protections that support the rule of law.

“The GPA is the only part of the WTO system that provides binding guarantees of the right to sell to foreign governments (which are not covered by other WTO disciplines). The GPA is also unique among WTO plurilateral agreements in that only the forty-seven current country signatories to the agreement benefit from and can enforce its binding commitments,” the letter stated.

Additionally, the letter warns that if the U.S. withdrew from the GPA, it could no longer negotiate the terms under which China could join the GPA. As a result, other GPA signatory countries would be less likely to demand comprehensive access to Chinese government procurement markets.

USCIB Supports US–Singapore Joint Statement on Financial Services Connectivity

Published on February 6, 2020

Washington DC – February 6, 2020 – The U.S. Council for International Business (USCIB) today voiced its support for the recent U.S. – Singapore Joint Statement on Financial Services Data Connectivity. We applaud this holistic approach to cooperation on the critical issue of Data Policy.

USCIB further recognizes the importance of ensuring seamless transfer of data across borders in conjunction with the business of a financial service provider. We support fostering greater understanding of this important public policy issue and acknowledge the importance of unfettered data connectivity and its role in global trade, innovation and economic growth.

Link to the Joint Statement by U.S. – Singapore on Data Connectivity:

https://home.treasury.gov/news/press-releases/sm899

USCIB Supports Respect for Arbitration Awards in U.S. GSP Program

Published on February 3, 2020
USCIB Vice President Shaun Donnelly (left) and Chevron Supervising Counsel Andres Romero-Delmastro (right) testifying as panelists before the US Government’s GSP Subcommittee

USCIB went on the record at the January 30 Public Hearing of the USTR-led interagency Generalized System of Preferences (GSP) Subcommittee, supporting respect for the GSP eligibility criteria, specifically the need for “respecting and enforcing international arbitral awards.”  USCIB Vice President for Investment Policy Shaun Donnelly joined member company Chevron as the two business experts testifying on the specific issue of Ecuador’s continuing eligibility for GSP in light of the country’s very troubling record in a long-running major investment arbitration case filed by Chevron.

USCIB joined Chevron in recommending that, in light of Ecuador’s continuing refusal to enforce final arbitral awards by the panel, Ecuador’s access to GSP unilateral trade preferences should be suspended until they come into full compliance with those panel orders. According to Donnelly, after a senior official from the Ecuadorian Attorney General’s office presented the government’s case, a senior Chevron attorney detailed the long saga of Ecuadorian non-compliance. Donnelly then offered broader comments to the sub-committee on the important policy implications of Ecuador’s non-compliance and the importance of maintaining and enforcing the clear eligibility criteria laid out in the GSP statute. The Ecuador investment arbitration case was one of nine “country eligibility cases” on the agenda for public comments before the GSP subcommittee in its two-day meeting January 30-31.

“We at USCIB are strong supporters of the GSP program but it is not an entitlement for Ecuador or any other beneficiary developing countries” Donnelly explained.  “When a country refuses over many years to respect legitimate arbitral awards, in this case from an investment arbitral panel under the U.S.-Ecuador Bilateral Investment Treaty (BIT), the U.S. government’s patience must have a limit. Ecuador has clearly fallen short of the standards under the GSP statute. I think the detailed case presented by Chevron was compelling.”

Chevron and USCIB have been filing formal comments and testifying to the GSP sub-committee along these same lines regularly since 2012. USCIB has long been a leading voice in the U.S. and international business communities on the importance of foreign direct investment (FDI)  to economic growth and development in both the capital exporting and destination countries.  A vital key to incentivizing FDI flows in all direction is strong, transparent and enforceable investment protection, most often in the form of international investment agreements such as BIT treaties or investment chapters in Free Trade Agreements (FTAs.)  When investment disputes arise, access to and respect by all parties for the Investor-State Dispute Settlement (ISDS) arbitration system under those legally-binding investment agreements is essential.

USCIB has led international business advocacy on investment and ISDS issues, including respect for arbitral panel decisions, for many years including at meetings of the OECD, UNCTAD, and UN Commission on International Trade Law (UNCITRAL.)

To read Donnelly’s full testimony, click here.

USCIB Releases 2020 Trade and Investment Policy Priorities

Published on January 14, 2020

Each year the Trade and Investment Committee of the U.S. Council for International Business (USCIB) conducts an extensive consultation process among members in identifying priorities for the coming year. The 2020 USCIB Trade and Investment Agenda includes a list of key principles our members support for open trade and investment and an action plan for addressing our trade and investment policy priorities.

The action plan anticipates another busy year on trade and investment including:

  • pressing for final approval and implementation of USMCA,
  • seeking Administration action on phase 2 agreements with China and Japan,
  • supporting movement on trade negotiations with the EU and UK,
  • seeking continued progress on negotiations in the WTO on a digital trade agreement and
  • modernizing the WTO.

“The Agenda provides the framework for USCIB work to advance policies and negotiations that will open international markets for our member companies and strengthen the global rules-based trade and investment framework,” said USCIB Senior Vice President for Policy and Government Affairs Rob Mulligan.