Alice Slayton Clark Archives

Mulligan Represents Business at OECD Trade Meetings

Published on October 29, 2019
USCIB Senior Vice President for Policy and Government Affairs Rob Mulligan

Rob Mulligan, USCIB senior vice president for policy and government affairs, was in Paris the week of October 21 attending OECD and Business at OECD (BIAC) trade committee meetings. Over the last few months, USCIB members have contributed to the development of BIAC’s trade priorities paper which was released last week. Mulligan, as a vice-chair of the BIAC trade committee, represented BIAC at the OECD Trade Committee Meeting and shared the eleven-priorities for consideration as the OECD develops their program of work for 2021-2022.

“During the OECD meeting, I highlighted the need for continued OECD work on market distorting subsidies and other government support for state-owned enterprises, digital trade and new work on trade and the environment that would underpin the need to balance climate change with ensuring open markets for trade,” said Mulligan.

The OECD Trade meeting also discussed ongoing G7, G20 and Asia Pacific Economic Cooperation (APEC) activities, including outcomes of the G7 and G20 Summits, as well as expectations for the APEC Economic Leader’s meeting in November, which will be hosted by Chile.

USCIB Welcomes Ratification of UN Convention That Helps SMEs

Published on October 22, 2019

After years of effort by USCIB and a coalition of other trade associations, USCIB welcomed an announcement that the United States has formally ratified the United Nations Convention on the Assignment of Receivables in International Trade, having deposited the instrument on October 17 at the UN Treaty Office in New York.

Enactment of the Convention makes it easier for U.S. small and medium-sized businesses to access additional financing from lenders based on their sales of goods and services to customers located in other countries that ratify the Convention.

USCIB has been urging the U.S. to ratify this convention since 2016 and worked through a coalition to send letters to high-ranking Senators at the Committee on Foreign Relations and the Committee on Banking, Housing and Urban Affairs.

“We need three more countries to ratify the Convention for it to enter into force, and we have an active list of those countries most likely to ratify,” noted USCIB Senior Director for Trade, Investment and Financial Services Eva Hampl.

Hampl Contributes Expertise at OECD Workshop on Investment

Published on October 22, 2019
USCIB Senior Director Eva Hampl speaks at OECD

USCIB Senior Director for Trade, Finance and Investment Eva Hampl contributed her expertise on a panel hosted by the OECD during its workshop on investment promotion and facilitation in Paris on October 22. The day-long event focused on investment facilitation and retention, foreign direct investment (FDI) impact on the host economy, as well as organized break-out sessions focusing on specific regions such as the European Union, Eurasia and select Latin America and Caribbean countries.

Hampl’s panel also featured Ambassador of Chile to the WTO and Coordinator of the WTO Structured Discussions on Investment Facilitation for Development Eduardo Gálvez, Director, Services and Industry Promotion Department, Ministry of Foreign Relations of Brazil Min. Luiz Cesar Gasser, Executive Director, Invest in Finland, Business Finland Antti Aumo and Head of Investment Policy Unit, DG Trade, European Commission Carlo Pettinato. Panelists addressed key roles of investment promotion agencies (IPAs) and policymakers in facilitating business establishment, securing investment retention and encouraging re-investments.

As the sole business representative on the panel, Hampl discussed common challenges that companies face on the ground at the establishment phase or for expansions and re-investments in both OECD and non-OECD economies. She suggested measures that governments can make in order to facilitate the establishment of companies to encourage them to stay in the home country. Hampl also touched upon the U.S. business perspective of the WTO discussions on investment facilitation.

“Investment is vital to economic growth and development,” said Hampl during the panel. “However businesses face many challenges when investing, including regulatory issues, lack of IP protections, lack of appropriate redress, inefficiencies and costs generated by forced localization policies and duplicative testing requirements, skills disparity, inability to find suitable business partners, etc. There is unfortunately no one size fits all approach — every country needs to work out what works best within the economy. But any measures should improve the rule of law and strengthen the institutions — more carrot than stick.”

The purpose of the workshop was to build on the IPA mappings to deepen OECD research in certain areas of investment promotion and facilitation, strengthen the knowledge of the OECD IPA Network and exchange on topics of common interest.

Hampl is attending a slew of investment-related meetings taking place at the OECD this week, including an OECD Roundtable on Investment and Sustainable Development, a Business at OECD (BIAC) dinner with the OECD Investment Committee leadership, a Business at OECD Investment Committee meeting and a stakeholder consultation with the OECD Investment Committee.

USCIB Members Win Prestigious State Department ACE Award

Published on October 21, 2019

The U.S. Department of State has announced the four winning U.S. companies for the 2019 Secretary of State Award for Corporate Excellence (“ACE Award”) and, again this year, USCIB member companies are well represented. The two awards open to large multinational companies are both going to USCIB members – Procter & Gamble Asia Pacific wins the ACE for women’s economic empowerment for its gender equality leadership across the Asia Pacific region while PepsiCo in India is recognized for sustainable operations from their community water programs, which focus on water replenishment and water conservation in agricultural practices. P&G is a repeat winner, having won in 2011 for its work in Nigeria and Pakistan.

Nearly every year, one or more USCIB members are among the very select group of winners recognized by the Department of State for exemplary corporate responsibility around the world. Nominations are invited every year from U.S. ambassadors on the ground in each foreign country. These senior U.S. government officials have a keen understanding of the local impact these companies have and the exemplary work they are doing in specific international markets.

The awards will be presented by U.S. Secretary of State Mike Pompeo to senior executives from each company in a ceremony at the State Department on October 31. Details on the winning company efforts are included in this State Department news release.

USCIB salutes its member company winners this year. “It seems every year one or more USCIB member companies end up winning the prestigious State Department ACE awards,” said USCIB President and CEO Peter Robinson. “I’m not surprised since our members are widely recognized among the most progressive, most socially responsible companies in the world. P&G and Pepsi are among our star members, exemplifying all that’s good in the broad areas of corporate responsibility, including sustainability, women’s empowerment, community development, and investing in their employees around the world. When leading U.S. companies trade, invest, and get involved overseas, they bring not only their commercial, economic and technical expertise and their market power; they also bring their values, including corporate responsibility and ethical behavior. I salute Pepsi and P&G as winners this year as I have other member companies in previous years. These award winning companies do us at USCIB and our country proud.”

USCIB Holds High-Level Meetings During WTO Public Forum

Published on October 14, 2019

USCIB and several members were on the ground in Geneva the week of October 7 for the World Trade Organization (WTO) Public Forum. The Forum included a plethora of panels on critical issues of concern to business including digital trade, services, the moratorium in customs duties on electric transmissions (Moratorium), the ongoing e-commerce negotiations, and WTO reform, including issues surrounding the Appellate Body (AB).

In addition to participating in the active forum agenda, USCIB’s Senior Vice President Rob Mulligan and Senior Director Eva Hampl held side-meetings with WTO leadership, such as Deputy Director-General Alan Wolff, Director, Council and TNC Division Victor do Prado, Director, Information and External Relations Division Keith Rockwell and Counselor, Telecom, ICT & E-commerce, Trade in Services and Investment Division Lee Tuthill. Mulligan and Hampl also met with Ambassadors Dennis Shea, Stephen deBoer, and Junichi Ihara from the United States, Canada, and Japan, respectively. Finally, USCIB engaged with international business groups, including Confederation of British Industry (CBI), Ibec (Irish Business), Canadian Chamber of Commerce, ICC UK, and Confederation of Danish Industry (DI).

“Across the board, everybody is closely paying attention to the E-Commerce negotiations,” said Mulligan. “There is a general positive attitude regarding the negotiations, but also a recognition that the tough issues like data flows and localization policies are still to come. Accordingly, it is not likely that an agreement will be ready by the Ministerial Council meeting in June 2020 (MC12).”

According to Mulligan, on the issue of the Moratorium, there continue to be opponents to extending the agreement, but most WTO members support at a minimum extending it to MC12 once it runs out in December of this year. To push back against the opposing forces, several studies are being developed. Among these, the OECD is also developing a paper on the Moratorium, which is likely to be released very soon.

WTO reform domin ated the discussion, often targeted at the U.S. pushing for meaningful updates on issues like subsidies, transparency, and notifications. The U.S. position on the Appellate Body, however, continues to be controversial and there is some nervousness about what will happen to the dispute resolution arm of the WTO once the terms of two of the three remaining AB members run out at the end of the year. On the other hand, there are some who believe pragmatism will take over and the value of the institution and the important work being done on the other reforms will not be impacted.

USCIB also co-hosted a breakfast with the International Chamber of Commerce (ICC). Speakers at the breakfast included The Right Honorable Liz Truss MP, secretary of state for International Trade in the UK, who spoke on the importance of the multilateral trading system; Ambassador Sunanta Kangvalkulkij from Thailand, who provided an update in the General Council discussions; Ambassador David Walker from New Zealand, who provided an update on the AB, and Ambassador Frances Lisson from Australia, who spoke about the JSI on E-Commerce; and WTO Director General Roberto Azevedo, who spoke to the current state of play of WTO Reform.

To wrap up the busy week in Geneva, USCIB co-hosted a business reception with several other business associations, to underline the importance of a business relationship with the WTO. Invitees include member companies and associations, country delegates, and WTO staff.

USCIB Participates in WTO Public Forum in Geneva

Published on October 9, 2019

With the World Trade Organization (WTO) Public Forum taking place this week in Switzerland, USCIB Senior Vice President for Policy and Government Affairs Rob Mulligan and Senior Director for Trade, Investment, and Financial Services Eva Hampl, along with several USCIB members, are on the ground in Geneva to engage in various side meetings with WTO officials and staff.

According to Mulligan, the main issues of concern are WTO reform, including the Appellate Body, as well as the E-Commerce negotiations, with a particular focus on the Moratorium on customs duties on electronic transmission which is about to run out the end of the year.

On October 9, USCIB co–hosted a breakfast with the International Chamber of Commerce (ICC), several ICC National Committees, including from the UK, Germany, and Switzerland, and the Digital Trade Network. The governments of Benin, Canada and Switzerland also supported the event. Several ambassadors exchanged views with business in the room about various aspects of current WTO activities. The event concluded with remarks by WTO Secretary General Roberto Azevedo, speaking about the importance of international trade and finding solutions.

Hampl Provides Testimony at Interagency Committee on China’s WTO Compliance

Published on October 8, 2019

Following USCIB’s annual submission to the U.S. Trade Representative regarding China’s compliance with its WTO commitments, USCIB Senior Director for Trade, Investment and Financial Services Eva Hampl provided testimony before the interagency Trade Policy Staff Committee, which was chaired by USTR and included officials from the Departments of Commerce, Treasury, State, Agriculture and Labor.

“USCIB members continue to have serious concerns with a host of policies and practices maintained by China that undermine the ability of U.S. businesses to operate, including unfair and discriminatory governmental practices,” stated Hampl. “The tariff actions under Section 301 have not to date resolved the underlying issues [of forced technology transfer and intellectual property theft] identified by the United States. Accordingly, high-level bilateral dialogue between the United States and China continues to be of the utmost importance. We also urge both countries to utilize, in addition to the WTO, the full range of formal multilateral fora, including Asia-Pacific Economic Cooperation (APEC) Forum and the Organization for Economic Cooperation and Development (OECD), to work toward improved commercial relations.”

The questions from the panel addressed the problematic enforcement of the anti-monopoly law, the myriad of certification and testing requirements, the current cybersecurity regime, market access (China’s filtering and blocking of websites and online services), the dysfunctional approval process for new agricultural biotechnology products, and recent developments on  China’s labor laws.

USCIB submitted extensive written comments last month. The submission is public and can also be found on www.regulations.gov under Docket Number USTR-2019-0010.

USCIB Meets With DOJ on Global Competition Issues

Published on October 1, 2019
L-R: Mike Murray, Deputy Assistant Attorney General; James Fredricks, Section Chief, Criminal Section II, U.S. Department of Justice; Dina Kallay, Ericsson and USCIB Competition Committee Chair; Eva Hampl, USCIB Senior Director, Investment, Trade and Financial Services; and Jennifer Patterson, Arnold & Porter and USCIB Competition Committee Vice-Chair.

Department of Justice (DOJ) Deputy Assistant Attorney General for Appellate Mike Murray met with USCIB’s Competition Committee, chaired by Dina Kallay (Ericsson), during its fall meeting on September 25 at the offices of White & Case LLP.  Following an introduction and welcome by Vice Chair Jennifer Patterson (Arnold & Porter LLP), USCIB members participated in an active agenda that included updates on important developments on global competition issues.

Murray discussed the issue of indirect purchasers DOJ Antitrust Division brief and position in Apple v. Pepper. His complete remarks can be found here. DOJ Section Chief Jim Fredericks, Criminal Section II then presented and answered member questions regarding the DOJ Antitrust Division new policy to incentivize compliance programs.

Members also received an update from Bryan Gant from White & Case on the status of the amicus brief USCIB filed in the 1-800 Contacts case, which urges reversal of the FTC ruling on antitrust liability for trademark settlements. Finally, John Taladay (Baker Botts), Chair of the Business at OECD Competition Committee, provided an overview of the upcoming OECD Competition Week taking place December 2-6 in Paris. The latter part of that week will be the Global Forum on Competition, covering issues such as competition provisions in regional trade agreements and merger control in dynamic markets.

USCIB Releases Statement on China’s WTO Commitments, Urges Bilateral and Plurilateral Dialogue

Published on September 24, 2019

In response to an annual request by the United States Trade Representative for comments on China’s compliance with WTO commitments and notice of public hearing, USCIB gathered member input and submitted a comprehensive statement on September 18.

The statement emphasizes the direct and important stake American business holds in the relationship between the U.S. and China and in its success. As the world’s largest economy, China’s practices and policies have a significant impact on its trading partners, and engagement with China can be challenging. China’s growing importance in the global economy provides strong incentives for both countries to work together to address common challenges and responsibilities.

USCIB members continue to have serious concerns with several policies and practices maintained by China that undermine the ability of U.S. businesses to operate, including unfair and discriminatory governmental practices. Furthermore, U.S. tariffs and Chinese retaliatory tariffs imposed as a result of the U.S. Section 301 investigation into China’s forced technology transfer, intellectual property, and innovation policies have been disruptive to U.S. business.

“The tariff actions have not resolved the underlying issues identified by the U.S. or have changed Chinese behavior regarding the matters covered by the investigation or the broader issues identified in this submission,” said Senior Director for Investment, Trade and Financial Services Eva Hampl.

Accordingly, the USCIB submission urged high-level bilateral dialogue between the U.S. and China. USCIB also urged both countries to utilize, in addition to the WTO, the full range of formal multilateral fora, including Asia-Pacific Economic Cooperation (APEC) Forum and the Organization for Economic Co-operation and Development (OECD), to work toward improved commercial relations. Plurilateral dialogues that include U.S.-friendly jurisdictions such as the European Union, Canada or Australia should also be considered.

“This annual submission provides a valuable opportunity to stakeholders to share issues that business is facing in China, following their accession 18 years ago in 2001,” said Hampl. Many sectors continue to face significant issues related to market access, transparency, regulation and protection of intellectual property rights. In addition to addressing many cross-sectoral and sector specific issues, this submission takes the opportunity to address the ongoing tariff war with China and the damaging effect that is having on companies.

“USCIB has been consistently pushing back against this tariff escalation, the start of which alleged to address some of the issues highlighted in our broader China WTO submission,” added Hampl. “Our submission clearly shows that the issues related to IP theft and forced tech transfer continue to be a problem for companies doing business in China.”

Donnelly and US Government Talk Investment With African Union Group

Published on September 12, 2019

USCIB Vice President for Investment Policy Shaun Donnelly was one of two private sector investment policy experts invited to join a September 10 U.S. government interagency team meeting with a delegation of economic policy experts from the African Union (AU) Commission staff.

According to Donnelly, the investment policy meeting, one of several meetings that day at the Office of the U.S. Trade Representative (USTR), focused on African-wide investment reforms and ongoing international investment negotiations, including in the UN Commission on International Trade Law (UNCITRAL) and the World Bank’s International Center for Settlement of Investment Disputes (ICSID).

Donnelly offered a U.S. private sector perspective on the importance of comprehensive, high-standard international investment agreements and especially of strong Investor-State Dispute Settlement (”ISDS”) enforcement provisions.

“We had an excellent, candid exchange on a range of important international and African investment issues with the team of AU Commission experts,” said Donnelly.  “I think we all benefited from the discussions. I certainly learned of some interesting AU-led investment initiatives across Africa and I appreciated the opportunity to explain why U.S. business strongly supports investment agreements and ISDS protections.”