Kira Yevtukhova Archives

USCIB Hosts Briefing with USG Negotiating Team on Investor-State Dispute Settlement

Published on December 22, 2020

USCIB hosted a briefing with the U.S. negotiating team on Investor-State Dispute Settlement (ISDS) Reform at the UN Commission on International Trade Law (UNCITRAL) on December 16. UNCITRAL’s Working Group III focuses on the issue at UNCITRAL and held its thirty-ninth session in early October. Members had the opportunity to discuss current developments with Karin Kizer, attorney-advisor in the Office of Private International Law in the Office of the Legal Adviser of the Department of State, and lead negotiator on ISDS Reform at UNCITRAL. She was also joined by Khalil Gharbieh, director for Investment at the Office of the U.S. Trade Representative (USTR), as well as colleagues from the State Department.

“Investment protections are more important than ever, with global Foreign Direct Investment (FDI) having dropped dramatically due to the current crisis,” said USCIB Senior Director for Trade, Investment and Financial Servcies Eva Hampl. “Increasing investment flows should be a priority for countries as they look to recover from the pandemic. Mechanisms like ISDS are critical in ensuring that investors have adequate recourse as they invest in foreign markets, and are a factor as decisions are made where to invest.”

According to Hampl, the discussions at UNCITRAL are driven by the European Union’s proposal for a multilateral investment court, a proposal that reared its head during the negotiations of a Transatlantic Trade and Investment Partnership (TTIP). USCIB, having official observer status at UNCITRAL, has been an active participant in the meetings of the working group, most recently at the meetings in October.

Subsequent to the meetings, USCIB together with the Corporate Counsel International Arbitration Group (CCIAG) submitted comments on Appointment of Arbitrators, Appellate Mechanism, and Enforcement.

The next session is scheduled to take place February 8-12, 2021 in Vienna.

USCIB Encourages Biden Environmental Nominees to Engage on Multilateral Issues

Published on December 21, 2020

New York, N.Y., December 18, 2020: The United States Council for International Business (USCIB) issued a statement today by its President and CEO, Peter Robinson, commending the nominations of Michael Regan, for Administrator of the U.S. Environmental Protection Agency (US EPA) and Brenda Mallory to lead the White House Council on Environmental Quality (CEQ).

“USCIB members are strongly committed to advancing environmental protection through innovation and investment in the global marketplace. We believe that EPA and CEQ play crucial roles in shaping U.S. international environmental policy, not just in connection with climate change but in other priority areas, such as pursuing nature-based solutions, circular economies and responsible chemicals risk management. 2021 will be a year of important decision-points in the multilateral system, looking ahead to the fifth UN Environment Assembly and eventual thirty-year anniversary of the Rio Earth Summit; vigorous U.S. engagement in those deliberations will be vital for economic prosperity and environmental stewardship at home and abroad.

“USCIB sees opportunities to pursue synergies across international and domestic actions for enhanced environmental benefits, and advance the UN Sustainable Development Goals (SDGs), delivering a recovery that improves environmental quality, creates jobs and stimulates public-private partnerships. Since 1992, USCIB has represented U.S. business in support of the UN Framework Convention on Climate Change (UNFCCC) and its Paris Agreement. In addition, USCIB has been the voice of American business at the UN Environment Programme (UNEP), the Strategic Approach to International Chemicals Management (SAICM), and other multilateral environmental deliberations and forums. USCIB is fully committed to international cooperation and to partnership with our government to advance American private sector-driven economic prosperity and environmental stewardship at home and abroad. In our view, it is critical to continue to focus on and champion substantive engagement of U.S. business across the UN system on key environmental topics.

“USCIB and its members are ready to assist the incoming Administration to develop and implement market-oriented environmental solutions and measures, working with the international community and in consultation with the American private sector. As the U.S. affiliate of Business at OECD (BIAC), the International Chamber of Commerce (ICC) and the International Organization of Employers (IOE), and with its own standing at the UNFCCC, UNEP and at the UN Economic and Social Council (ECOSOC), USCIB is uniquely placed to scale and amplify these opportunities across the UN system, and in the OECD and the WTO.”

About USCIB: USCIB promotes open markets, competitiveness and innovation, sustainable development and corporate responsibility, supported by international engagement and prudent regulation. Its members include U.S.-based global companies and professional services firms with operations in every region of the world. As the U.S. affiliate of leading international business organizations and as the sole U.S. business group with standing in ECOSOC, USCIB provides business views to policy makers and regulatory authorities worldwide, and works to facilitate international trade and investment. More at www.uscib.org.

Policy Contact: VP for Strategic International Engagement, Energy and Environment Norine Kennedy (nkennedy@uscib.org)

Addressing Tax Challenges Arising from Digitalization of the Economy: USCIB Submits Comments to OECD

Published on December 16, 2020

Washington D.C., December 14, 2020 – The U.S. Council for International Business (USCIB), which represents many of America’s leading global companies, provided comments to the Organization for Economic Cooperation and Development (OECD) in response to the OECD’s Public Consultation Request to its Reports on the Pillar One and Pillar Two Blueprints, which would develop coherent rules to address the tax challenges arising from the digitalization of the economy.

Among its recommendations, USCIB emphasized that the OECD rules should be developed with consideration of their potential impact on global growth and business investment decisions, and should be designed in a way to support the achievement of tax certainty for taxpayers and tax administrations and not be too complex or too onerous in compliance to discourage global investment. According to its comments, USCIB noted that the rules should also be based, to the maximum extent possible, on internationally accepted principles of taxation for coherency in their creation and consistency in their application.

For USCIB’s complete comments to the OECD, please click here.

About USCIB:
USCIB promotes open markets, competitiveness and innovation, sustainable development and corporate responsibility, supported by international engagement and regulatory coherence. Its members include U.S.-based global companies and professional services firms from every sector of our economy, with operations in every region of the world, generating $5 trillion in annual revenues and employing over 11 million people worldwide. As the U.S. affiliate of the International Chamber of Commerce (ICC), the International Organization of Employers, and Business at OECD (known as BIAC), USCIB helps to provide business views to policy makers and regulatory authorities worldwide, and works to facilitate international trade and investment. More information is available at www.uscib.org.

USCIB Commemorates Human Rights Day and Universal Declaration of Human Rights

Published on December 16, 2020

New York, N.Y., December 10, 2020: The United States Council for International Business (USCIB) issued the following statement on occasion of Human Rights Day today:

“On this Human Rights Day, USCIB stands with the global community in commemorating the important milestone of the adoption of the Universal Declaration of Human Rights (UDHR) in 1948. The UDHR rightly proclaims the inalienable rights which everyone is entitled to as a human being – regardless of race, color, religion, sex, language, political or other opinion, national or social origin, property, birth or other status.The coverage of these rights includes LGBTI people too.

“USCIB especially welcomes the theme of this year’s Human Rights Day, “Recover Better – Stand Up for Human Rights,” and is dedicated to encouraging, advocating for and promoting human rights in business though sound regulations, greater respect for rule of law and greater business community involvement. The COVID-19 pandemic has illuminated how important and fragile respect for human rights can be, while simultaneously demonstrating that challenges can present important opportunities to collaborate for solutions. We are proud of the actions undertaken by our membership of multinational businesses, law firms and trade associations to ensure that people and planet are protected during the pandemic.”As we come together as a global community to rebuild throughout and beyond COVID-19, USCIB and our members are committed to working with governments, the private sector and other stakeholders to advance sustainable and human rights-based solutions for all. This includes those global business organizations for which we serve as the U.S. affiliate, the International Chamber of Commerce, the International Organization of Employers and Business at OECD (known as ‘BIAC’).”

About USCIB: USCIB promotes open markets, competitiveness and innovation, sustainable development and corporate responsibility, supported by international engagement and prudent regulation. Its members include U.S.-based global companies and professional services firms with operations in every region of the world. As the U.S. affiliate of the leading international business organizations, and as the sole U.S. business group with standing in the UN Economic and Social Council (ECOSOC), USCIB provides business views to policy makers and regulatory authorities worldwide, and works to facilitate international trade and investment. More at www.uscib.org.

USCIB Discusses USMCA Labor Provision With USTR’s Lewis Karesh

Published on December 16, 2020

USCIB members met for a briefing with Lewis Karesh, who serves as Assistant U.S. Trade Representative for Labor, to discuss the status of the latest developments regarding the implementation of the labor provisions of the US-Mexico-Canada Agreement (USMCA). The December 10 briefing with Karesh, who was the lead negotiator of the USMCA labor chapter, provided members a detailed overview of the new provisions in the agreement, including the newest feature, the Rapid Response Mechanism, discussing issues related to implementation and next steps to be expected. The meeting was co-organized by the USCIB Corporate Affairs and Labor Committee, as well as the Trade and Investment Committee, and included introductions from the respective Chairs: Laura Rubbo, Disney and Rick Johnston, Citi.

USMCA entered into force July 1 of this year and is currently being implemented. The Labor Chapter is a new provision, establishing a number of new labor requirements for signatory States. Among the enhancements, USMCA prioritizes labor obligations by including them in the core of the agreement and making them fully enforceable, whereas NAFTA labor obligations were contained in a side agreement on labor.

“We appreciated learning more about the USMCA labor chapter elements and their implementation status. Promulgation and effective enforcement of national labor laws that align with international standards should be the norm everywhere, and that certainly should be the case with U.S. trading partners if we are to achieve our shared goal of advancing worker rights globally,” said Gabriella Rigg Herzog, USCIB vice president for corporate responsibility and labor affairs.

The USMCA implementing legislation established an Interagency Labor Committee for Monitoring and Enforcement, co-chaired by USTR and the Department of Labor, to coordinate U.S. implementation of its labor obligations, monitor Mexico’s labor law reforms and enforce USMCA labor provisions where necessary. “Implementation and enforcement of trade agreements is key to how effective their negotiated provisions will be for companies” commented Eva Hampl, USCIB senior director of investment, trade and financial services. “The North American market covered by USMCA is extremely important to our members and their ability to continue to be able to compete in the global market place. Effective implementation of all provisions, including the Labor Chapter, is a top priority.”

Donnelly Advocates for Investment, Investor-State Dispute Settlement

Published on December 16, 2020

USCIB Senior Advisor Shaun Donnelly was a panelist in a two half-day virtual Forum on Investor-State Mediation December 8-9 organized by the British Institute of International and Comparative Law (BIICL). The conference brought together international arbitrators, mediators, academics and investment experts. Donnelly’s panel, wrapping up the conference, was focused on “Future of ISDS Mediation: Climate Change, COVID-19 and the Potential Surge of Investor State Disputes.” ISDS (Investor-State Dispute Settlement) is the arbitration enforcement provisions commonly found in international investment agreements. 

Donnelly, the lone business voice on a panel with ISDS skeptics from NGOs and academia, emphasized the importance of private sector investment, including Foreign Direct Investment (FDI), to drive global economic recovery, growth, trade and jobs. 

“Investment agreements with strong investor-state dispute  settlement provisions can be key to incentivizing investment flows,” said Donnelly.  Donnelly also challenged critics to show any recent surge of ISDS cases, noting investors are generally acting responsibly and assisting host governments in dealing with the daunting health and economic crises. He endorsed serious mediation efforts as an additional tool, but not as a substitute for, to support strong investment agreements in resolving disputes. 

“If early, time-limited, voluntary mediation can solve problems, resolve disputes, cut costs, and speed decisions, great!” he added.  “I enjoyed the opportunity to participate in a very interesting, very international conference focused on mediation as potential tool to help resolve investment disputes,” Donnelly said. “It was important for business voices to be there with lawyers, arbitrators and mediators, as well as NGO activist and academics. We had a good exchange. I think effective mediation could be a useful tool in some cases but it has to be voluntary for the parties and should not be seen as an excuse for radical revisions to international investment agreements and established dispute settlement mechanisms.”        

USCIB Member P&G Wins 2020 Corporate Leadership Award

Published on December 9, 2020
P&G’s Deborah Majoras. Image source: Google

The Coalition for Integrity (“C4I”), a leading Washington-based NGO devoted to fighting bribery and corruption in the U.S. and internationally, awarded its coveted Corporate Leadership Award for 2020 to Procter & Gamble (“P&G”), a long-time USCIB member company.  P&G was honored on December 8 for its good corporate citizenship, leadership in proposing transparency and integrity and its long-established Purposes, Values and Principles (“PVP”) program.  P&G Chief Legal Officer Deborah Majoras accepted the award on behalf of P&G CEO David Taylor.  The Coalition also cited P&G’s extraordinary efforts and philanthropy in 2020 to fight the COVID-19 virus. 

P&G is the seventh USCIB member company to receive the C41 Corporate Leadership Award, joining previous winners Bechtel, The Coca-Cola Company, General Electric, Marriott International, PepsiCo and Raytheon Technologies.

USCIB President & CEO Peter Robinson congratulated P&G. “We’re delighted to see, again this year, one of our leading companies, P&G, recognized for its pathbreaking leadership on corporate responsibility, integrity, anti-corruption and corporate citizenship,” said Robinson. “Like other USCIB companies, P&G has earned an enviable reputation for its corporate leadership here at home in the U.S. and around the world.  P&G sells products in 180 countries around the world and has a direct corporate presence in over 70 of those nations. Our member companies are making the world a much better place and are an example for other companies around the world.”   

The Coalition presented its other major award, the Integrity Award, to Dr. Anthony Fauci, in recognition of his work in combatting the COVID-19 virus and maintaining a high standard of scientific integrity and credibility. The Coalition’s press release on the Awards non-dinner gala ceremony highlights Dr. Fauci’s acceptance speech. USCIB Senior Advisor Shaun Donnelly is a longtime member of the Coalition for Integrity’s Policy Advisory Board.  He and USCIB Senior Director for Trade, Investment and Financial Services Eva Hampl have worked with the Coalition on international anti-bribery issues, including promoting enforcement of the OECD Anti-bribery Convention. 

USCIB Leads Business Dialogue on Climate Change and Trade, Investment and Recovery

Published on December 9, 2020

The Major Economies Business Forum (BizMEF) held its annual Business Dialogue on December 7, en route to next year’s Glasgow Climate Summit; this year’s BizMEF event was held virtually following the postponement of COP26 in Scotland.  The event, Restoring Momentum, Advancing Synergies – Building Recovery into COP26 with the Private Sector, set the scene for a series of in-depth dialogues in 2021 on trade and climate, climate investment and finance for innovation and national climate pledges that reflect COVID19 impacts and recovery opportunities.

The BizMEF Business Dialogue marked the fifth anniversary of the Paris Agreement and welcomed over seventy participants from government, academia and business.  Opening the session were USCIB CEO and President Peter Robinson and the Chief Strategist for Minority, Policy and Communications of the Climate Select Committee from the U.S. House of Representatives George David Banks.  In his remarks, Banks cautioned against unilateralism and stressed that multilateralism, commercial strategies and leveraging domestic policies will go a long way in realizing the goals of the Paris Agreement.

The dialogue discussed free trade and climate change, including the European Union’s Carbon Border Adjustment mechanism proposal, the impacts and considerations of the COVID-19 pandemic on economic disruption and development of Nationally Determined Contributions (NDCs), as well as climate change finance and investment.

High-level government speakers at the December 7 dialogue included Ignacio Garcia Bercero, from the European Commission Directorate General for Trade, Motoko Ogawa, deputy director of Japan’s Environmental Economy Office and the Ministry of Economy, Trade and Industry (METI) and Switzerland’s lead negotiator for climate finance, Gabriella Blatter.

USCIB is a founding member of BizMEF, an alliance of more than twenty leading multisectoral business groups from OECD and non-OECD countries, including BusinessEurope, Brazil (CNI), France (MEDEF), Japan (Keidanren), CGEM (Morocco), the AI Group (Australia) and others. BizMEF Dialogues at Climate Summits have been held every year since 2012 in Doha, Warsaw, Lima, Katowice, Marrakesh, Bonn and, most recently, in Madrid last year.

Brazil’s Accession to OECD: Robinson Provides Input at “Brazil OECD Business Policy Roundtables”

Published on December 9, 2020

As Brazil continues its reform efforts to accede to the OECD, USCIB partnered with the Brazil-U.S. Business Council of the U.S. Chamber of Commerce and Brazil’s National Confederation of Industry (CNI) on December 8 to launch a series of Brazil OECD Business Policy Roundtables. The roundtables convene private sector representatives to build sectoral consensus and identify priorities and possible improvements for Brazil.

“The objective of this collaborative effort between the U.S. and Brazilian business communities is to channel private sector input to Brazilian policy makers with the goal of effecting further reforms in line with OECD standards,” said USCIB Senior Director for Trade, Investment and Financial Services Eva Hampl.

USCIB President and CEO Peter Robinson spoke at the event this week and commended the reform efforts that have taken place in Brazil so far as critical to ensuring market access and a level playing field for companies operating in both markets. “Brazil is an important trade partner for the U.S. and therefore a very important market to USCIB members,” said Robinson. “Issues like trade, investment, taxation, intellectual property, and the digital economy are top of mind for our companies as they look to the Brazilian market. We look forward to discussions on all of these important issues with stakeholders in the roundtables following today’s launch event.”

As the U.S. representative to Business at OECD (known as “BIAC”), USCIB has been actively monitoring potential future accessions. Brazil formally requested OECD membership in May of 2017. According to Hampl, since the formal request in 2017, Brazil has taken steps to reform several parts of its economy to meet the OECD’s standards for eventual accession. To date, Brazil has not yet been invited to join the OECD.

In October of this year, the U.S. and Brazil updated the 2011 Agreement on Trade and Economic Cooperation. While not a comprehensive trade agreement, the update included important provisions on customs and trade facilitation, good regulatory practices and anti-corruption.

As with the accession of Colombia to the OECD, USCIB led the U.S. business effort at the OECD to share priorities on reforms. “We look forward to facilitating a similar conversation regarding Brazil,” added Robinson. “This collaborative effort with CNI, our network partner through Business at OECD, as well as the Brazil-U.S. Business Council of the U.S. Chamber, is an important step in discussing what is at stake for business in the economic relationship with Brazil.”

Robinson Delivers Business Perspective on Investment at UNCTAD High-Level Conference

Published on December 9, 2020

As the leading business speaker at the opening plenary session of the virtual Global Investment Promotion Conference organized by the UN Conference on Trade and Development (UNCTAD) December 7-8, USCIB President and CEO Peter Robinson laid out a clear message on the importance of investment in driving global economic recovery, trade and jobs. 

Robinson shared the virtual dais with UNCTAD Secretary General Mukhisa Kituyi, President of Botswana Mokgweetsi Masisi, Prime Minister of Barbados Mia Mottley, as well as leading business representatives, including the International Chamber of Commerce (ICC) Permanent Observer to the United Nations Andrew Wilson.

Robinson’s remarks on trade focused on Foreign Direct Investment (FDI) and the critical role of governments’ efforts in promoting FDI; he emphasized the importance of a strong investment climate and rule of law as foreign investors evaluate possible foreign investments. Robinson also endorsed UNCTAD’s efforts to build capacity of developing country governments in investment promotion.  According to Robinson, one key element in any investment agreement is access to effective, independent dispute settlement procedures by a potential investor.

“I was honored to be included in the opening panel for UNCTAD’s important virtual conference on investment promotion,” Robinson said. “We appreciate UNCTAD’s work in the critical area of investment policy. UNCTAD has clearly established itself as the global ‘go-to’ source for investment statistics and catalogue of provisions of regional and bilateral investment agreements.  We also greatly support UNCTAD’s efforts to include business perspectives in their conferences, including in panels and debates.  We at USCIB are convinced that FDI flows in all directions are key to getting the global economy back on track. The economy benefits from both inward and outward FDI flows, fostering trade, creating good jobs at home and abroad, as well as bolstering American competitiveness in today’s and tomorrow’s competitive global economy.”

USCIB member and Microsoft’s Vice President for UN Affairs in NY John Frank was a featured speaker on a December 8 panel “Executive Dialogue of Investment Facilitation and Advocacy.”  The Conference program and full list of speakers is available at Global Investment Promotion Conference – World Investment Forum – UNCTAD