Governments Actively Engaged at WTO E-Commerce Negotiations

In an effort to support e-commerce negotiations at the World Trade Organization (WTO), USCIB has been contributing to the Digital Trade Network, led by Nick Ashton-Hart.

Ashton-Hart participated in the Joint Statement Initiative on E-commerce’s (JSI) first substantive negotiating round in Geneva May 13-15, which was based upon a subset of the subjects in the 14 contributions of WTO Members. Topics covered included online consumer protection, electronic authentication and electronic signatures, Electronic transactions framework, domestic regulation, transparency, non-discriminatory treatment of digital products, and many others.

According to Ashton-Hart, the level of engagement was quite high, the tone very constructive and collaborative, and quite a few countries that have not yet tabled proposals said they expect to do so. There was a general view that the services-related elements of the outcome agreement are intended to build upon GATS though it remains an open question what form the agreement will take – not surprising or seen as controversial at the present.

The next session will take place June 18-20, in Geneva, with proposals to be considered due June 6. The session will cover, among other subjects, privacy and data protection, cybersecurity and telecommunications. There will be at least two seminars from industry groups on logistics and the flow of data respectively.

Earlier this year, Ashton-Hart contributed a column in USCIB’s quarterly magazine, International Business, regarding the importance and impact of these global talks on online trade. Click here to view.

Business Not Bullish on Prospect of New China Tariffs

USCIB joined other members of the American for Free Trade coalition to issue a statement to President Trump in response to his announcement on May 3 to increase the China tariffs from 10 to 25 percent, representing a tariff total of $200 billion.

The statement highlighted key figures that indicated the enormous consequences the tariffs would have on the U.S. economy and consumers. According to the statement, not only would this increase result in a loss of nearly one million jobs, but current tariffs already burden consumers with $69 billion in added costs.

“For ten months, Americans have been paying the full cost of the trade war, not China,” read the statement, which referred to the 10 percent of tariffs imposed earlier this year. “To be clear, tariffs are taxes that Americans pay, and this sudden increase with little notice will only punish U.S. farmers, businesses and consumers.”

Eva Hampl, who leads USCIB’s work on China also emphasized: “The tariffs currently imposed on Chinese imports are already a significant strain on the U.S. economy and consumers. An increase on such a broad cross section of industries will exacerbate the negative effects to a degree that will be a significant challenge for companies.”

USCIB Co-Sponsors Reception to Promote OECD Trade Priorities

Dominik Kümmerle (Business at OECD), Cliff Sosnow (Business at OECD Trade Committee), Pat Ivory (Ibec, Business at OECD Trade Committee), Eva Hampl (USCIB), Russell Mills (Business at OECD), Julia Nielson (OECD Trade Directorate)

USCIB Senior Director for Trade, Investment and Financial Services Eva Hampl joined global business colleagues from Business at OECD and Irish Business (Ibec) to co-sponsor a reception in Paris on April 25 to officially launch a report “Business at OECD Considerations for Trade and Investment – Priorities for Future OECD Work.” Th event was held in conjunction with the OECD Trade Committee meetings which took place the week of April 22, and built on the report by reinforcing the relationship between Business at OECD and the OECD Trade Committee.

Chair of the OECD Trade Committee Ambassador Didier Chambovey, who serves as head of the Swiss Permanent Mission to the WTO and EFTA, made a few opening remarks at the reception, underlining the importance of the relationship between Business at OECD and the OECD Trade Committee. Pat Ivory, vice chair of the Business at OECD Trade Committee joined Hampl in making a few comments, highlighting issues of importance to Business at OECD and USCIB’s respective economies and business more broadly.

In her remarks, Hampl noted the challenges the global economy is faced with in the midst of so many countries turning inward denouncing globalization and promoting protectionist policies. “In that context, the most effective way to push back is with empirical evidence—on issues like services, global value chains, policies related to national security and the danger of trade restrictive measures such as tariffs or quotas to the global trading system,” said Hampl. “We must look to the future of the global economy; that is why the work that is currently being done on digital trade at the OECD is invaluable to business – all of our companies operate in the digital space and understanding exactly how the digital economy works is key to successfully regulating this space.

While in Paris, Hampl also attended the OECD Trade Committee meetings April 22-26. According to Hampl, while there were many issues on the agenda, the clear focus across the board was on digital trade. “While the OECD does not directly engage in the WTO E-Commerce negotiation, there is a keen awareness the role the analytical work done at the OECD can play in advancing the negotiations at the WTO,” said Hampl. To that end, Business at OECD circulated a paper on what business is looking for in the WTO E-Commerce negotiations and how the OECD can contribute to the effort.

In addition to attending the official sessions of the OECD Trade Committee, where Business at OECD made interventions on the preparations for the Ministerial Council Meeting (MCM) in May 2019, the Interim Economic Outlook, and Digital Trade, Business at OECD also held its own meeting focused on business priorities. That meeting included an extensive exchange on the Committee’s priorities and next steps where much of the conversation centered on digital trade in its various forms, but also addressed broader issues like China and the state of the global economy. A dinner with OECD leadership also provided a great opportunity to informally exchange views on these important issues.

 

USCIB Meets With WTO Deputy Secretary General Alan Wolff

Right: Alan Wolff (WTO) speaks to USCIB members alongside Rob Mulligan (USCIB)

USCIB hosted the World Trade Organization’s (WTO) Deputy Secretary General Alan Wolff on April 29 at its Washington office.

The meeting, which was attended by many USCIB members, including Chubb, Eli Lilly, Pfizer, Visa and Verizon, provided an opportunity for USCIB staff and members to get Wolff’s insights into the current working of the WTO, raise questions about key initiatives such as e-commerce, discuss emerging proposals for reform of the WTO and identify key concerns for U.S. companies on global trade. Wolff began his four-year term as deputy director general in 2017.

“Alan is a leading voice on trade policy in Washington, DC who often participated in the USCIB Trade and Investment Committee meetings and has a long history of working in key trade roles in the government and the private sector,” said USCIB Senior Vice President for Policy and Government Affairs Rob Mulligan. “We look forward to continuing our engagement with him as the WTO reform process gets underway.”

USCIB has been active on WTO reform, voicing concerns many U.S. companies share. Earlier this month, USCIB Vice President Shaun Donnelly traveled to Sao Paolo, Brazil for a day-long seminar organized by CNI, the Brazilian industry confederation. Donnelly was joined by private-sector groups from Argentina, Brazil, the European Union, and Mexico in a joint statement of the critical importance the WTO is to business.

New OECD Reports Outlines Business Investment Contribution to SDGs

The Organization for Economic Cooperation and Development (OECD) has recently published a report on “The Contribution of International Business Investment to the Sustainable Development Goals (SDGs).” The report surveys the main type of financing behind business investment in developing countries, recent trends, an evaluation of the contribution of these flows to the SDGs, and prospects going forward.

The report highlights that multinational enterprises (MNEs) have become one of the most important actors for channeling investment to the developing countries. A relatively new actor providing financing for development is the State-Owned Enterprise (SOE). Furthermore, mergers and acquisitions (M&A) is one of the primary vehicles that MNEs use to invest in foreign markets and a major component of foreign direct investment. M&A inflows in developing countries starting declining already in 2012.

An increasingly important source of international investment into developing countries is China; in 2017 China doubled its M&A in developing countries to $25 billion, making it their top resource of international M&A (ahead of Japan and the US). Meanwhile, private flows align naturally with the SDGs in the area of infrastructure: SDG 6, which focuses on clean water and sanitation), SDG 7 on affordable and clean energy, SDG 9 on industry, innovation and infrastructure, and SDG 10 which aims to reduce inequalities.

“The report calls to action for improving the global rules for trade and investment, pursuing domestic policy reform agenda to improve business climates, and addressing new areas of regulatory co-operation,” observed USCIB Senior Director for Investment, Trade and Financial Services Eva Hampl.

The OECD will be organizing a round table on investment and sustainable development on October 23, 2019, as part of the next OECD Investment Week.

USCIB Joins Coalition in Urging Specific US Government Action on US-China Trade

USCIB joined Americans for Free Trade, a multi-industry coalition consisting of over 150 members, to send a letter to President Donald Trump on April 22 regarding upcoming U.S.-China trade talks.

The Coalition letter urged the U.S. government to fully and immediately remove all recently imposed tariffs, including U.S. tariffs and China’s retaliatory tariffs as part of a final deal, while also encouraging the U.S. to come up with a deal that levels the playing field for U.S. companies by achieving meaningful changes to address China’s unfair trade practices that put American technology, innovation and intellectual property at risk.

Regarding unfair trade practices, the letter stated: “For too long, China has engaged in unfair trading practices, including forced technology transfer, cyber theft, intellectual property violations and more. We hope any final deal will resolve the structural issues that are at the core of the trade dispute in order to fully protect American technology, innovation, and intellectual property.”

The letter also urged the government to avoid any enforcement mechanism that would trigger further tariffs and obtain clarity on how the tariff exemption process will be carried out in the event of a deal.

Finally, the group also urged an economic assessment by the Administration examining the costs of tariffs for American businesses and consumers.

Americans for Free Trade represents companies that employ tens of millions of American workers and provide goods and services to virtually every corner of the United States.

Donnelly Returns to State as “Economic Leadership” Panelist  

L-R: Manisha Singh (US Department of State); Charles Rivkin (Motion Picture Association of America); Shaun Donnelly (USCIB)

USCIB Vice President for Investment Policy and Financial Services Shaun Donnelly was invited back to the Department of State last week as a featured panelist at the annual “Economic Leadership Day,” session, organized by the three bureaus at State working primarily on economic issues.

Prior to joining USCIB in 2011, Donnelly led a long career as a Department of State Foreign Service Officer and held several senior State Department economic positions including Principal Deputy Assistant Secretary of State for Economic and Business (“EB”) Affairs, which is the third highest ranking economic policy post at the Department, as well as Deputy Assistant Secretary (“DAS”) for Trade Policy, DAS for International Energy Policy and Economic Sanctions and U.S. Ambassador to Sri Lanka and Maldives.

At last week’s session, Donnelly joined President and CEO of the Motion Picture Association of America Charlie Rivkin, who is the former EB Assistant Secretary and former U.S. Ambassador to France, on a panel moderated by Assistant Secretary of State Manisha Singh.  The panel, entitled “Don’t Stagnate, Innovate!” featured Donnelly and Rivkin offering advice to and answering questions from economic officers across the Department on lessons from the private sector for Department officers. In his wrap-up remarks, Deputy Secretary of State John Sullivan underlined his and Secretary of State Mike Pompeo’s strong support for economic policy work and commercial advocacy on behalf of U.S. business as top priorities of the Department of State.

“I was honored to join Ambassador Rivkin and Assistant Secretary Manisha Singh on a free-wheeling panel at State’s Economic Leadership Day,” said Donnelly. I’ve spent the bulk of my professional career doing economic policy work at the State Department so these issues of the roles of the Department of State and the people there doing economic work are near and dear to my heart.  I really enjoyed the exchanges and the follow-up private conversations, especially with younger State Department officers with long careers ahead.  Anything we at USCIB can do to promote more interactions, better coordination between the Department and leading U.S. firms is to everyone’s benefit. I commend Assistant Secretary Singh and her team for an excellent event.”

USCIB Participates in UNCTAD E-Commerce Week in Geneva

USCIB Senior Director Eva Hampl

Last week, USCIB Senior Director for Investment, Trade and Financial Services Eva Hampl attended E-Commerce Week hosted by the United Nations Conference on Trade and Development (UNCTAD) in Geneva. The theme of the week was “From Digitalization to Development” and included over 1400 participants from government, private sector, and civil society from around the world. Many of the thematic sessions addressed negotiations of an e-Commerce agreement expected to begin soon at the World Trade Organization (WTO).

Seventy-six WTO members, accounting for 90% of global trade in electronic commerce, endorsed the negotiation of a high-standard agreement in January of 2019 at the World Economic Forum (WEF) in Davos, Switzerland. USCIB supports these negotiations and is looking forward to a high-standard outcome on digital trade issues affecting business.

The UNCTAD meetings also included several sessions of the Intergovernmental Group of Experts on E-Commerce and the Digital Economy, which Hampl joined as a member of the Digital Trade Network (DTN), making substantive contributions on issues of data flows and localization policies.

“Given the broad UN membership, there continues to be push-back from certain countries to UNCTAD engaging on this issue,” reported Hampl. “UNCTAD leadership, however, made it clear in various meetings that there is broad support for negotiations on electronic commerce moving ahead at the WTO, and on general work on digital trade moving forward. This positive momentum is also shared by the WTO, where the work is progressing, and expected to move forward this year.”

USCIB Joins in Business Appeal on WTO Reform

L-R: Shaun Donnelly (USCIB), Rafael Nava (Consejo Empresarial Mexicano de Comercio Exterior (COMEX))

USCIB has joined with leading private-sector groups from Argentina, Brazil, the European Union and Mexico in a statement on reforming the World Trade Organization (WTO). Meeting at a daylong seminar on April 2 in Sao Paolo hosted by CNI, the Brazilian industry confederation, the groups underscored the critical importance to business of the WTO “as the proper and only way to guarantee the full range of rules and necessary predictability to promote global economic and investment growth.” The seminar, titled “Reforming the WTO: Proposals for Improving the Governance of the Multilateral Trading System,” was co-hosted by the International Chamber of Commerce (ICC).

Industrial Development Director of CNI Carlos Eduardo Abijaodi presented the joint statement to Tim Yeend, chief of staff to the WTO director general. CNI and USCIB were joined by Union Industrial Argentina (UIA), Business Europe and COMEX of Mexico to participate in the seminar and to underline shared views on the crucial role the WTO plays in providing and enforcing the vital legal rules and procedures underpinning the global trading system.

The five associations emphasized their shared view that the WTO needs to updated and reformed to deal with several outstanding challenges. Senior representatives of all five national business groups were panel speakers, offering business perspectives on the importance of the WTO, its challenges, and possible solutions. Global Policy Director for the ICC’s network Nikolaus Schultze also participated actively in the seminar and laid out the need for strong business input into the WTO reform effort.

In their statement, the industry groups focused on four areas:

  • saving the WTO dispute resolution system
  • updating, strengthen and modernizing WTO rules
  • improving WTO’s monitoring function
  • expanding and improving the WTO’s rule-making function.

The groups also called upon WTO members to establish a formal consultative mechanism for the private sector via a permanent business advisory committee.

L-R: Carlos Eduardo Abijaodi (CNI – Brazil), Rafael Nava (COMEX – Mexico), Tim Yeend (World Trade Organization), Jeff Schott (Peterson Institute of International Economics – US), Peter Draper (University of Adelaide – Australia), Nikolaus Schultze (International Chamber of Commerce, Paris), Shaun Donnelly (USCIB – US), Fernando Landa (Union Industrial Argentina,), Fabrizio Panzini (CNI – Brazil)

USCIB Vice President for Investment and Financial Services Shaun Donnelly who represented USCIB at the seminar in Sao Paulo, praised CNI and ICC hosts for organizing the session. “We at USCIB are committed partners with CNI and, of course, with ICC, as we are ICC of the U.S.,” said Donnelly. “Today’s discussions, which also included senior WTO and Brazilian Government officials, were candid, substantive and very timely. I was honored to speak on the ‘Business Priorities for the WTO’ panel along with my four association partners and to partner with them in issuing our joint statement. For us at USCIB, the WTO and WTO reform are top priorities. Today we joined with four key partners from Europe, Brazil, Argentina and Mexico to add an international accent to our work on and commitment to the WTO. We and our member companies want to work with all our partners, including the U.S. Government, the U.S. Congress, the International Chamber of Commerce, the WTO Secretariat and our unique network of leading business association partners around the world to help make the WTO the well-respected, updated, strengthened organization we all need it to be.”

The joint statement follows upon USCIB’s earlier paper on WTO modernization, which focused on addressing subsidies and other market-distorting support provided to state-owned enterprises, the establishment of new rules for current issues such as digital trade and customs processes on electronic transmissions, and ensuring a properly functioning appellate body, among other issues.

USCIB Washington Update: December, January, February 2018-2019

Highlighting Key Activities, December, January, and February 2018-2019

During the months of December, January, and February 2018-2019, USCIB Staff submitted comments on potential trade agreements with Japan, the EU, and the UK, testified on a potential trade agreement with the UK, issued recommendations in on how business can support WTO reform, met with Nan Fife at the State Department on OECD issues, provided two sets of comments on drafts of the B20 Tokyo Summit Joint Recommendations, met with State department officials following the ITU Plenipotentiary Meeting and IGF, provided input on the development of a 21st Century Customs Framework, commented on proposals concerning determining the foreign tax credit and the Base Erosion Anti-abuse Tax, and much more. Below are summaries of these and other highlights from the activities of USCIB in Washington, D.C. over the last three 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.

Table of Contents:

Trade and Investment – Opening Global Markets for Trade and Investment

ICT Policy – Promoting Sound Policies for New Technologies

Tax – Advancing Tax Policies that Promote U.S. Competitiveness

Customs and Trade Facilitation – Reducing Barriers and Costs from Customs and Border Control Practices

China – Supporting Policies and Relationships that Enhance U.S.-China Business

Membership

Upcoming Events

Staff List

Trade and Investment – Opening Global Markets for Trade and Investment

Business Pushes for Comprehensive Trade Deal with Japan: USCIB submitted comments in late 2018 to the United States Trade Representative (USTR) outlining negotiating objectives for a U.S.-Japan Trade Agreement. USCIB supports negotiation of a comprehensive trade agreement with Japan as part of a broader strategy to open international markets for U.S. companies and remove barriers and unfair trade practices in support of U.S. jobs. USCIB outlined its priority issues, which include digital trade, intellectual property, media and entertainment services, investment, customs and trade facilitation, express delivery services, electronic payment services, regulatory coherence, government procurement and financial services. The Administration has released negotiating objectives for a U.S.-Japan FTA, negotiations for which are due to begin soon.

USCIB Submits Negotiation Objectives for U.S.-EU Trade Deal: USCIB submitted negotiation objectives for a U.S.-EU Trade Agreement to the United States Trade Representative (USTR) on December 11, 2018. The submission was filed in response to USTR’s request for comments and emphasized the importance of a comprehensive negotiation, covering not only market access for goods, but also critical services issues. The USTR request for comments follows the administration’s announcement to Congress on October 16, 2018 of its intention to initiate negotiations on a U.S.-EU Trade Agreement. USCIB supports negotiation of a comprehensive trade agreement with the EU as part of a broader strategy to open international markets for U.S. companies and remove barriers and unfair trade practices in support of U.S. jobs. USCIB priority issues for negotiation of a U.S.-EU agreement include investment, customs and trade facilitation, express delivery services, improved regulatory cohesion, digital trade, intellectual property, government procurement and SOEs, and financial services.

U.S.-UK Trade Agreement: USCIB Submits Negotiating Objectives and Hampl Testifies: USCIB submitted negotiating objectives for a high standard and comprehensive U.S.-UK Trade Agreement on January 16, 2019. USCIB’s submission was based on the assumption that the UK will be successful in exiting the EU, allowing for the ability to negotiate trade agreements with trade partners outside of the EU. Priority issues for negotiations of a U.S-UK Trade Agreement include digital trade (including cross border data flows, forced localization, cybersecurity and digital taxation), intellectual property, media and entertainment services, financial services, electronic payment services, customs and trade facilitation, express delivery services, regulatory cohesion, investment, government procurement, and chemicals. Eva Hampl, Senior Director, Investment Trade and Financial Services, provided testimony before the Trade Policy Staff Committee (TPSC) at the public hearing on January 29, 2019.

USCIB Urges Removal of Steel and Aluminum Tariffs in USMCA: USCIB joined a coalition of other trade and industry organizations to send a letter to Secretary Wilbur Ross and Ambassador Robert Lighthizer on January 23, 2019, regarding the 232 tariffs on steel and aluminum. The coalition, recognizing the importance of the new U.S.-Mexico-Canada Agreement ratification to the economic interests of all three countries, underscored the importance of lifting these tariffs, as well as the removal of all retaliatory tariffs on trade among the three countries.

WTO Modernization: USCIB Recommendations and Robinson Op-Ed: As World Trade Organization (WTO) member governments move forward this year with efforts to reform the WTO, USCIB issued recommendations in January 2019 on how business can support the WTO and its efforts to improve the organization. USCIB’s recommendations also noted the importance of the WTO as a cornerstone of the global rules-based trading system that has helped spread growth and development for decades. They focused on addressing subsidies and other market-distorting support provided to state-owned enterprises (SOEs), the establishment of new rules for current issues such as digital trade and customs processes on electronic transmissions, and ensuring a properly functioning appellate body, among others. USCIB President and CEO Peter Robinson appealed for a strong business role in efforts to modernize the global trade body in an Op-Ed published in The Hill. Robinson wrote that he views of the private sector, which has a direct stake in the rules that result from such government-to-government discussions, should be actively solicited and given careful consideration by WTO member states.

Broad-Based Business Coalition to Press for USMCA Adoption: The United States Council for International Business (USCIB), which represents America’s most successful global companies, has joined with an array of U.S. companies and industry associations to urge swift approval by Congress of the United States-Mexico-Canada Agreement (USMCA), an updated and modernized framework for expanded trade, investment and market integration in North America. The USMCA Coalition, encompassing more than 200 leading companies and major associations representing farmers and ranchers, manufacturers, service providers and technology companies, was formally launched on February 26, 2019.

BIAC Chair O’Reilly Talks/Listens to USCIB: The Chair of “Business at OECD” or Business and Industry Advisory Committee (BIAC), Phil O’Reilly met in person in New York, and by video link to Washington, on January 11, 2019, with USCIB Board members, committee chairs and staff. Phil reported on BIAC’s annual meeting with the OECD senior leadership (Secretary General Gurria, Deputy Sec Gens, and key ambassadors) and laid out BIAC’s agenda and priorities for 2019. Rick Johnston of Citi and a Vice-Chair of the BIAC Board, also offered his perspectives on BIAC priorities and challenges and on where the OECD is heading. Russel Mills, the new BIAC Secretary General, also called in for the session. Russel has long experience in the U.S. chemical industry (Dow and Dupont) and was long-time Chair of BIAC’s Environment committee. We had an excellent, candid discussion with Phil O’Reilly. BIAC is in good hands.

USCIB Team and Members Discuss with Senior State Department Leaders Business Access/Treatment at UN Agencies: USCIB and some key member companies have become increasingly worried about discrimination against business in several U.N agencies, including but not limited to the World Health Organization. We have been active in raising these concerns with the U.S. Missions to the UN in New York City, Geneva, and Rome as well as to the International Organizations (“IO”) Bureau at the Department of State. On January 24, 2019, despite the challenges of the government shutdown, key leaders from the IO Bureau came to USCIB’s Washington office e for a very candid discussion with key member companies and staff about business treatment access in the parts of the UN system. We followed that up with a more detailed meeting with State IO experts at the Department on February 15. USCIB VPs Norine Kennedy, Mike Michener and Shaun Donnelly are taking the lead on this important work. The State Department and our U.S. Mission have been great partners, as have some international counterparts in our global network, but this will be a long-term issue with parts of the UN system and a top priority for USCIB.

USCIB Talks OECD with State Department: On February 12, 2019, USCIB Senior Vice President for Policy and Government Affairs, Rob Mulligan, led a USCIB staff team in a detailed meeting with the OECD “desk” team at the Department of State which coordinates overall U.S. dealings with the OECD and backstops the U.S. Mission to the OECD in Paris. Nan Fife, Director of the Economic Policy and Public Diplomacy office in state’s Economic and Business (“EB”) Bureau led the State team. We had an excellent, frank exchange on a range of issues related to the OECD and ended up in agreement on assessments and priorities, and concerns. One important development we will be actively monitoring is progress in getting a new U.S. Ambassador confirmed and out to Paris on the ground. Pamela Bates, an experienced former State Department economist, has been quickly renominated after her earlier nomination (and many others) expired at the of the previous Congressional session. Getting Ms. Bates confirmed and on-the-job in advance of the OECD’s annual May Ministerial is an important priority for USCIB and for State.

Donnelly Talks Business and BIAC Issues at Training Session for USG Delegates to OECD: USCIB Vice President Shaun Donnelly was a panelist again this year at the third annual “Delegates Training Session” organized and hosted by our State Department partners who coordinate all OECD work. State annually invites all U.S. Government employees (senior or junior) from all USG agencies who represent the USG at any OECD Committee, Working Group, or other meeting to this all-day training session on “how to be an effective delegate/advocate” and broad USG policies and priorities regarding the OECD. Again this year, our State colleagues devoted a lengthy session to the importance of coordinating with the U.S. private sector, featuring the USCIB and BIAC network. Shaun, the only business panelist, explained BIAC and USCIB, our unique roles, and how we operate. He was joined on the panel by three USG experts active in their respective OECD committees and with USCIB. We appreciate State organizing the session, for the focus on working with the private sector, and especially for including USCIB.

USCIB Discusses Digital Trade with Nick Ashton-Hart: On January 16, 2019, USCIB staff met with Nick Ashton-Hart, the Geneva Representative of the Digital Trade Network (DTN), as well as representative of ICC United Kingdom on the UK delegation to the meetings of the International Telecommunications Union. USCIB is part of the DTN along with a few other ICC national committees and several companies. The DTN is focused on supporting the effort in the WTO to move forward on the E-Commerce initiative, which is a priority issue for USCIB.

ICT Policy – Promoting Sound Policies for New Technologies

State Department Officials Explore Challenges in Internet Governance with USCIB Members Following 2018 ITU Plenipotentiary Meeting and 2018 Internet Governance Forum: The ICT Policy Committee Meeting on December 13, 2018, featured discussions with State Department officials about the implications of year-end initiatives that potentially could affect governance of the Internet stemming from the International Telecommunication Union (ITU) Plenipotentiary, October 29-November 16, 2018 in Dubai, UAE, the 2018 Internet Governance Forum (IGF), November 12-14, 2018, in Paris, France, and French President Emmanuel Macron’s Paris Call for Trust and Security in Cyberspace. The ITU Plenipotentiary meeting included positive, precedent-setting developments – namely, the election of U.S. candidate Doreen Bogdan-Martin to Director of the ITU Telecommunication Development Bureau. In addition, through thoughtful pre-meeting diplomacy, the U.S. Government was able to derail problematic resolutions that would have brought Artificial Intelligence (AI) and cybersecurity under the ITU’s purview. Nevertheless, State Department officials urged USCIB members remain vigilant in 2019 to prevent ITU “mission creep.” Concerning the 2019 IGF, State Department officials and USCIB members both concurred that President Macron’s opening speech – in which he called for greater regulation of the Internet, among other issues – was concerning and raises questions about whether the IGF will remain a forum for discussion or face growing pressure to produce policy outputs. Similarly, the group agreed that if President Macron’s “Paris Call,” which was a non-binding statement of support for cybersecurity principles, was brought into the UN process, the transition from a single-nation to a multilateral initiative could pose problems for the United States and U.S. business.

USCIB Members Provide Inputs Aimed at Shaping Japan’s B20 Report: Working under exceedingly tight deadlines, USCIB members from the ICT Policy Committee, the Trade and Investment Committee, the Customs and Trade Facilitation Committee, and the Tax Committee provided two sets of comments during the month of January 2019 concerning the first and second drafts of the B20 Tokyo Summit Joint Recommendations. Under the theme, “Society 5.0 for SDGs,” USCIB members emphasized the following: (1) promote interoperability of risk-based security and privacy protection standards across jurisdictions so as to ensure free flow of data, information, ideas and knowledge across borders; (2) foster e-commerce by ensuring free business decision regarding the location of computing facilitates and confidentiality of corporate information; (3) firmly commit to not imposing customs duties and processes on electronic transmissions, permanently; (4) prevent the weakening of intellectual property protections and enforcement mechanisms that underpin trade in digital content and products; and (5) support the OECD Inclusive Framework process to develop a consensus, income-tax based solution that can be applied to the broader digitalized economy. USCIB members further urged G20 governments to resist the temptation to regulate emerging technologies such as Artificial Intelligence, recognizing that such efforts cannot keep pace with rapid technological innovation.

USCIB Members Follow Up Comments to UN High Level Panel on Digital Cooperation by Urging a Holistic Approach to Digital Policy-Making: On January 17, the ICT Policy Committee followed up its November 30, 2018 submission to the U.N. High-Level Panel on Digital Cooperation (HLPDC) by addressing specific questions posed by the panel secretariat. By urging a “holistic approach” to digital policy, USCIB clarified that the approach envisioned would go beyond use of digital technologies by the information, communications, and technology (ICT) sector, and consider how ICTs can serve as enablers for innovations across all sectors, such as in healthcare, education, finance, and energy, to name a few. “This requires cutting across policy silos and different departments and agencies within governments and intergovernmental bodies, which we refer to as “whole-of-government,” USCIB stated. Members further urged that governments should strengthen their collaboration with internal and external stakeholders to create flexible, forward-looking and integrated policy frameworks. The HLPDC was established by the UN Secretary-General in July 2018 to advance proposals to strengthen cooperation in the digital realm and contribute to the broader global dialogue on how interdisciplinary and cooperative approaches can help ensure a safe and inclusive digital future.

OECD Kicks Off Review of 2013 Privacy Framework with Advice and Inputs from USCIB Members: On February 4, 2019, the OECD Working Party on Security and Privacy in the Digital Economy (SPDE) began a review of the 2013 Recommendation of the Council concerning Guidelines Governing the Protection of Privacy and Transborder Flows of Personal Data (i.e., “Privacy Guidelines”). The review will be undertaken by a special group of 40 privacy experts, which includes Barbara Wanner, USCIB Vice President for ICT Policy, and representatives from AT&T, Google, Oracle, Mastercard, and The Walt Disney Company. The group will consider how technological progress, changes in data-sharing practices by organizations and individuals, and the increasingly patchwork nature of global privacy frameworks may be addressed by revising and updating the OECD’s six-year-old Privacy Guidelines.

Tax – Advancing Tax Policies that Promote U.S. Competitiveness/strong>

USCIB Submits Comment Letters to Regulators: The Tax Committee dedicated significant resources to providing comments on a variety of topics over the months of December, January, and February. These comments can be found on the recent accomplishments section of the USCIB Tax Committee page. Comments included letters on: proposals concerning: determining the foreign tax credit; the Base Erosion Anti-abuse Tax; interest allocation under 163(j); the taxation of hybrid entities and transactions; and the UK digital services tax.

Customs and Trade Facilitation – Reducing Barriers and Costs from Customs and Border Control Practices

Customs and Trade Facilitation Committee Responds to 21st Century Customs Framework: On February 4, 2019, the USCIB Customs and Trade Facilitation Committee submitted comments in response to a U.S. Customs and Border Protection (CBP) Federal Register Notice request for public comments on the “21st Century Customs Framework”, a CBP initiative to better position CBP to operate in the 21st century trade environment. USCIB Comments included Recommendations, Concerns, Points for Consideration, Responses to specific CBP requests for comment on the topics of Emerging Roles in the Global Supply Chain; Intelligent Enforcement; Cutting-Edge Technology; Data Access and Sharing; 21st Century Customs Procedures; and Infrastructure.

China – Supporting Policies and Relationships that Enhance U.S.-China Business

USCIB Participates in Business Coalition Fly-in on China Tariffs: USCIB Senior Director, Investment, Trade and Financial Services, Eva Hampl participated in the Fly-In organized by Tariffs Hurt the Heartland the nationwide campaign against tariffs, combining the efforts of Farmers for Free Trade and Americans for Free Trade, of which USCIB is a member. Groups of representatives from associations and companies covered over 150 meetings with Senate and House offices from both sides of the aisle over February 6-7, 2019, in anticipation of an increase of tariffs on the $200 billion worth of Chinese imports from 10% to 25%. The group emphasized the concern about the tariff actions, noting that the various tariffs currently in place are causing significant damage to U.S. companies and jobs, with prospects even more dire were thee tariffs to continue or increase in the future. At this time, the intended increase has been formally delayed until further notice.

Membership

  • Membership Meetings The USCIB membership department and policy staff met with representatives from member companies Qualcomm, Ferrero and Cargill to develop our understanding of their policy priorities for the next year and beyond, and to see how USCIB can better serve their policy needs.
  • New Members: USCIB has recently welcomed Business Software Alliance, DLA Piper, Netflix, R.J. Reynolds, The Tax Foundation, and Westinghouse Electric Company as new members.

Upcoming Events:

    • UNCTAD E-Commerce Week, Geneva, Switzerland – April 1-5
    • UN Conference on International Trade Law (UNCITRAL) Working Group III on Investor-State Dispute Settlement (ISDS), New York City – April 1-5
    • CNI/ICC Event Reforming the WTO: proposals for improving the governance of the multilateral trading system, Sao Paulo, Brazil – April 2
    • Business & Society – Creating Shared Values: USCIB Responds, Washington, D.C. – April 8
    • Workshop on the New Center for Sports & Human Rights, Washington, D.C. – April 9
    • Corporate Responsibility and Labor Affairs Spring Committee Meeting, Washington, D.C. – April 10-11
    • WSIS Forum, Geneva, Switzerland – April 8-12
    • Business at OECD and OECD Trade Committee Meetings, Paris, France – April 24-26
    • Meetings of the OECD Working Parties of the Committee on Digital Economy Policy, Paris, France – May 6-7
    • USCIB Geneva Week-Business in Society: Shared Values, Geneva, Switzerland – May 6-10
    • APEC SOM 2, Valparaiso, Chile – May 6-18
    • ECOSOC 2019 Session, Geneva, Switzerland – May 29-31
    • OECD/BIAC/USCIB Tax Conference, Washington, D.C. – June 3-4

USCIB Policy and Program Staff

 

USCIB Policy and Program Staff

Rob Mulligan
Senior Vice President, Policy and Government Affairs
202-682-7375 or rmulligan@uscib.org

Erin Breitenbucher
Senior Policy and Program Associate and Office Manager, Washington
202-682-7465 or ebreitenbucher@uscib.org

Jonathan Huneke
Vice President, Communications and Public Affairs
212-703-5043 or jhuneke@uscib.org

Shaun Donnelly
Vice President, Investment and Financial Services
202-682-1221 or sdonnelly@uscib.org

Norine Kennedy
Vice President, Strategic International Engagement, Energy and Environment
212-703-5052 or nkennedy@uscib.org

Megan Giblin
Director, Customs and Trade Facilitation
202-371-9235 or mgiblin@uscib.org

Carol Doran Klein
Vice President and International Tax Counsel
202-682-7376 or cdklein@uscib.org

Ronnie Goldberg
Senior Counsel
212-703-5057 or rgoldberg@uscib.org

Mia Lauter
Policy and Program Associate, New York
212-703-5082 or mlauter@uscib.org

Daniella Goncalves
Assistant Policy and Program Manager, Corporate Responsibility and Labor Affairs
212-703-5083 or dgoncalves@uscib.org

Mike Michener
Vice President, Product Policy and Innovation
202-617-3159 or mmichener@uscib.org

Eva Hampl
Senior Director, Investment, Trade and Financial Services
202-682-0051 or ehampl@uscib.org

Chris Olsen
Policy and Program Associate, Washington
202-617-3156 or colsen@uscib.org

Gabriella Rigg Herzog
Vice President, Corporate Responsibility and Labor Affairs
212-703-5056 or gherzog@uscib.org

Kendall Thibeadeau
Policy and Program Associate, New York
212-703-5095 or kthibeadeau@uscib.org

Ashley Harrington
Policy and Program Associate, Washington
202-682-5861 or aharrington@uscib.org

Barbara Wanner
Vice President, ICT Policy
202-617-3155 or bwanner@uscib.org

Alison Hoiem
Senior Director, Member Services
202-682-1291 or ahoiem@uscib.org

Kira Yevtukhova
Communications Manager
202-617-3160 or kyevtukhova@uscib.org

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