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New ICC Foreign Investment Guidelines Define Investor and Government Roles

Published on April 21, 2012

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Doha, Qatar and New York, N.Y., April 21, 2012 – The International Chamber of Commerce (ICC) has issued updated Guidelines for International Investment to address new challenges of the international investment environment and to further promote investment as a driver of economic growth, according to ICC’s U.S. affiliate, the United States Council for International Business (USCIB).

These revised guidelines – addressed to members of the global business community, government officials and other stakeholders – were launched at the World Investment Forum, organized by the United Nations Conference on Trade and Development (UNCTAD) in Doha, Qatar today.

While the value of cross-border direct investment has grown substantially in the past decade, international investors have reason to be concerned about the impact of recent developments and policies on the free flow of international investment.

“Investment underpins economic growth and has shared value for companies and governments alike,” said Peter Brabeck-Letmathe, chairman of Nestle. “It allows companies to establish themselves in global markets and creates ties between domestic and foreign companies, allowing them to expand their activities and create new jobs.”

The aim of the ICC guidelines is to facilitate cross-border investment for investors and governments, as well as to harness the vast potential of cross-border investment for stimulating balanced global growth. Trade and investment have the potential to reinvigorate the global economy during the present economic crisis, particularly by driving sustainable growth in developing countries.

“The nature of investment has evolved geographically, with developing economies accounting for more investment inflows and outflows,” said James Bacchus, co-chair of Greenberg Traurig’s global practice group, who chaired the drafting group for the revised ICC guidelines.

There has been a sharp increase, since the original guidelines were drafted in 1972, in international investment inflows to, and outflows from, developing and transition economies. In 2010, these accounted for 52 percent of the total investment inflows and 29 percent of total investment outflows.

Global inward investment flows now approach $1.2 trillion (U.S.), and sales of affiliates worldwide are just under $30 trillion, far in excess of world trade flows. There are also more than 2,800 bilateral investment treaties among the nations of the world.

The ICC guidelines revision took place under the aegis of ICC’s Commission on Trade and Investment, chaired by Geoff Gamble, director of international government affairs with DuPont and chair of USCIB’s Trade and Investment Committee.  Stephen Canner, a senior advisor with USCIB, also played a leading role in the revision.

The revision comes on the heels of last week’s joint statement by the U.S. and the European Union on shared principles for international investment, which USCIB applauded as “a high-level, concise endorsement of the key role of international investment in the global economy.”

More information on the revision of the ICC Guidelines for International Investment is available on ICC’s website (www.iccwbo.org).  The full text of the guidelines is available on USCIB’s website at www.uscib.org/docs/2012_04_21_icc_investment_guidelines.pdf.

About the International Chamber of Commerce

The International Chamber of Commerce (ICC) is the world business organization, a representative body that speaks with authority on behalf of enterprises from all sectors in every part of the world.  A world network of national committees keeps the ICC International Secretariat in Paris informed about national and regional business priorities. More than 2,000 experts drawn from ICC’s member companies feed their knowledge and experience into crafting the ICC stance on specific business issues.  The United Nations, the World Trade Organization, the G20 and many other intergovernmental bodies, both international and regional, are kept in touch with the views of international business through ICC.

About USCIB

USCIB promotes open markets, competitiveness and innovation, sustainable development and corporate responsibility, supported by international engagement and prudent regulation.  Its members include top U.S.-based global companies and professional services firms from every sector of our economy, with operations in every region of the world.  With a unique global network encompassing leading international business organizations, including ICC, USCIB provides business views to policy makers and regulatory authorities worldwide, and works to facilitate international trade and investment.  More at www.uscib.org.

Contact:
Jonathan Huneke, VP Communications, USCIB
+1 212.703.5043 or jhuneke@uscib.org

Revised ICC Guidelines for International Investment

More on USCIB’s Banking and Trade and Investment Committee

Business Welcomes New U.S. Model Investment Treaty

Published on April 20, 2012

New York, N.Y., April 20, 2012 – The United States Council for International Business (USCIB) welcomed the release today of an updated U.S. government model bilateral investment treaty (BIT).  It encouraged the U.S. government to move forward aggressively with negotiations toward new agreements to promote and protect American investment in overseas markets as well as foreign investment in the United States, both of which it said would drive increased job creation, exports and economic growth.

“We commend the Department of State and the Office of the U.S. Trade Representative for their work to update the model BIT text to bring it in line with current priorities,” said USCIB President and CEO Peter M. Robinson.  “Although we have concerns with certain provisions, we support the new text as a basis for negotiations with key potential partners.  BITs are important tools to open overseas markets for U.S. companies, and they help drive U.S. exports and jobs in an increasingly competitive global marketplace.  We are glad to see the U.S. getting back in the game, to ensure that we don’t fall behind our competitors in terms of investment protections.”

The U.S. has negotiated bilateral investment treaties with dozens of countries around the world and is viewed as having the most ambitious, high-standard agreements of their kind, with strong market-opening measures as well as protections against expropriation and guarantees of impartial dispute settlement.  BIT provisions are also included in U.S. free trade agreements such as those recently adopted with Colombia, Panama and South Korea.

Changes to the model BIT include measures to increase transparency and public participation, modification of certain labor and environment provisions and an increased focus on ensuring competitive neutrality with state-owned or state-championed firms.  Robinson said the business community was disappointed with some aspects of the revision as well as the long delay in its completion.  “While well intentioned, some new provisions might dissuade potential BIT partners from entering into talks in the first place,” he said.

Robinson also expressed disappointment that some constructive suggestions from USCIB and others in the business community to strengthen and update the model BIT had not been included in the new text.  “We will continue to engage actively with the Obama administration, especially USTR and State, as well as the Congress to advocate on behalf of strong investment protections to benefit U.S. businesses, workers and taxpayers,” he said.  “We will also be taking a leading role in working with the administration to prioritize BIT negotiations and to push for early launch of talks with key potential partners.”

Last week, USCIB applauded a joint statement by the U.S. and the European Union on shared principles for international investment, which Robinson called “a high-level, concise endorsement of the key role of international investment in the global economy.”  The pro-trade group also drew attention to a parallel and mutually supportive effort by the International Chamber of Commerce (ICC) to update its own private-sector Guidelines for International Investment.  The ICC guidelines are to be released tomorrow at a meeting in Doha, Qatar.

“To succeed in high-growth markets overseas, U.S. companies need a level playing field, especially when they go up against state-owned or state-championed firms.” Robinson stated.  “The release of the revised model BIT is another illustration that the business community and major governments are increasingly marching in the same direction in terms of investment policies to promote growth, competitiveness and job creation.”

About USCIB:

USCIB promotes open markets, competitiveness and innovation, sustainable development and corporate responsibility, supported by international engagement and prudent regulation.  Its members include top U.S.-based global companies and professional services firms from every sector of our economy, with operations in every region of the world.  With a unique global network encompassing the International Chamber of Commerce, the International Organization of Employers and the Business and Industry Advisory Committee to the OECD, USCIB provides 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.

Contact:
Jonathan Huneke, VP communications, USCIB
(212) 703-5043 or jhuneke@uscib.org

More on USCIB’s Trade and Investment Committee

Global Business Views Presented to Mexican President Calderon Ahead of G20 Summit

Published on April 19, 2012
Mexican President Felipe Calderon discussed business views with CEOs and experts in Puerto Vallarta.
Mexican President Felipe Calderon discussed business views with CEOs and experts in Puerto Vallarta.

Executives from the International Chamber of Commerce (ICC), along with partners World Economic Forum (WEF) and Mexican business associations COPARMEX and COMCE, this week delivered recommendations reflecting the priorities  of global business to Mexican President Felipe Calderon in Puerto Vallarta.

Mr. Calderon hosted a meeting of 60 CEOs and experts from various intergovernmental organizations and civil society to receive a set of recommendations from B20 task forces, which have been working together since January to frame business views and an action plan for consideration by G20 governments in advance of the G20 Summit in Los Cabos in June.

Mr. Calderon, in his remarks to the CEOs, expressed his gratitude to the business community for its work. “Today’s dialogue will help us set the policy framework that will lead us to economic prosperity,” he said. “I will provide these recommendations to my colleagues in the G20 and will organize a mechanism for business to government dialogue during the Summit in Los Cabos.”  Mr. Calderon also highlighted that this was the first time that business views had been provided in advance of the Summit, allowing governments adequate time to consider the recommendations.

“Business has an important role to play in rebuilding trust and helping to address global economic issues. Today’s challenges are too large, too complex, and too interrelated to be solved by governments alone. We all must play our part,” said Cinepolis CEO Alejandro Ramirez, who has been designated by Mr. Calderon to coordinate the B20 Summit.

The work of the B20 taskforces addressed key themes for Mr. Calderon’s presidency of the G20, including food security, green growth, employment, improving transparency and eliminating corruption, trade and investment, information and communication technology and innovation, and financing for growth and development.

Trade and investment are among the top policy priorities for ICC, because they have already made a fundamental contribution to global peace and prosperity.

“The G20 must not take trade for granted, especially in the current adverse global economic environment in which protectionist pressures are on the rise,” said Martin Senn, CEO of Zurich Financial and a leading member of the ICC G20 Advisory Group. “Furthermore, trade and investment can provide a much needed debt-free stimulus to world economic growth.”

Members of ICC’s G20 Advisory Group, which included USCIB Chairman and ICC Vice Chairman Harold McGraw III, were invited to participate in the G20 Trade Ministers meeting preparing for the Los Cabos Summit. ICC G20 Advisory Group member companies  that were represented included Telefonica, Repsol, Dow Chemical, Corporacion America, Hanwha Group, The McGraw-Hill Companies, GDF Suez, Novozymes, Schneider Electric, Energy Transport Group, Royal Dutch Shell, and Zurich Financial Services.

Click here to read more on ICC’s website.

ICC G20 Advisory Group

Posted in ICC

Business Urges OECD Governments to Act on Regulation

Published on April 11, 2012

BIAC, the Business and Industry Advisory Committee to the OECD, part of USCIB’s global network, welcomed a new OECD recommendation to improve regulatory policy and governance and called for credible government action to effectively implement the recommendation’s principles.

Speaking at a meeting of the OECD Regulatory Policy Committee, BIAC Governance Committee Chair Jens Hedström underlined that now is the time for governments to act seriously. The effective implementation of the new OECD recommendation could not only restore confidence in governments, but also help boost economic growth and create private sector employment.

Mr. Hedström called the OECD recommendation a significant improvement over OECD guiding principles adopted in 2005, and said it provides the organization with an instrument with great potential to assist countries to improve the quality of regulation.

The recommendation rightly emphasizes the principles of open government and consultation with and engagement of stakeholders in the regulatory process, regulatory oversight and political accountability, the use of regulatory impact analysis and, in particular, the consideration of all regulatory costs including indirect costs, and systematic evaluation of regulations after they are adopted.

BIAC said the success of the OECD recommendation will to a large degree depend on its effective implementation in OECD member states and beyond. Mr. Hedström said business is willing to play an active role in this endeavor, and recommends benchmarking as a tool to regularly review the effectiveness and improvements in the implementation of the recommendation within OECD member states.

The text of the OECD recommendation is available at www.oecd.org/dataoecd/45/55/49990817.pdf.

USCIB Applauds U.S.-EU Investment Principles

Published on April 10, 2012

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New York, N.Y., April 10, 2012 – The United States Council for International Business (USCIB) welcomes the joint statement of the United States and the European Union on “Shared Principles for International Investment,” issued today in Washington and Brussels.

The statement constitutes “a high-level, concise endorsement of the key role of international investment in the global economy,” said  USCIB President and CEO Peter Robinson.

USCIB has represented U.S. business in a parallel and mutually-supportive effort by the International Chamber of Commerce (ICC) to update its own private-sector Guidelines for International Investment.  The ICC Guidelines are in the final stages of preparation and will be rolled out later this month.

“We are particularly pleased to see the strong emphasis on a ‘level playing field,’ including for private firms in competition with state-owned or state-championed enterprises around the world,” said Robinson.  USCIB also endorses the emphasis on strong protections for investors and investments and on effective dispute settlement provisions, including Investor-to-state arbitration.  The call for transparency and responsible business conduct highlights important areas where the U.S. and EU companies can help set high standards for other nations around the world.

USCIB has long been a strong advocate for open and competitive international investment, both inward and outbound, as important vehicles for promoting economic growth, jobs and competitiveness.   Business hopes that the U.S. and the EU will now move to bring other nations on board in adopting and acting upon these important concepts, which will benefit of businesses, workers and consumers in the U.S. and around the world.”

About USCIB:

USCIB promotes open markets, competitiveness and innovation, sustainable development and corporate responsibility, supported by international engagement and prudent regulation.  Its members include top U.S.-based global companies and professional services firms from every sector of our economy, with operations in every region of the world.  With a unique global network encompassing leading international business organizations, including ICC, USCIB provides 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.

Contact:
Jonathan Huneke, VP communications, USCIB
(212) 703-5043 or jhuneke@uscib.org

More on USCIB’s Trade and Investment Committee

Get Ready for the Mexico G20 Summit With Essential Resources from USCIB

Published on April 5, 2012
G20 leaders are making tracks for Los Cabos, and with informative, time-saving resources from USCIB, so can you.
G20 leaders are making tracks for Los Cabos, and with informative, time-saving resources from USCIB, so can you.

New York, N.Y., April 5, 2012 – Are you planning to cover or attend the G20 Summit in Los Cabos, Mexico this June?  Time-saving, informative resources from the United States Council for International Business (USCIB) can help get you on your way. What’s more, you’ll save money and hassle if you’re bringing video gear or other valuable professional equipment into the country.

USCIB is a business association that serves as the U.S. arm of the International Chamber of Commerce, the world business organization whose online bookstore (www.ICCBooksUSA.net) currently features a timely publication, “The G20 – What it is and what it does: A business guide.”

An essential guide for business executives, policy makers and the media. This handbook explains in detail what the G20 is, traces its origins and explains the reasons for its transformation into a top leadership group. It identifies the critical impacts that G20 policy developments may have on global economic activity and focuses on issues of special interest for business. Click here to order your copy today.

Merchandise passports speed shipment of your gear

Media representatives should know about the ATA Carnet export service from USCIB. Carnets are internationally recognized customs documents that speed delivery of professional equipment, as well as professional samples and goods for trade shows, to over 80 countries and customs territories, duty- and tax-free.

Mexico began accepting these “merchandise passports” last year, just in time for the global media onslaught that accompanies the G20 Summit. Goods brought into Mexico under Carnet and re-exported within one year are not subject to import duties or taxes.

Applying for a Carnet is easy, and Carnets are a simpler alternative to temporary import bonds or other products. More information is available at www.merchandisepassport.org. USCIB has a Mexico Carnet resources page to view click here.

So get informed, get a Carnet, get your gear, and get ready to cover the G20 Summit.

About USCIB:

USCIB promotes open markets, competitiveness and innovation, sustainable development and corporate responsibility, supported by international engagement and prudent regulation. Its members include top U.S.-based global companies and professional services firms from every sector of our economy, with operations in every region of the world.

With a unique global network encompassing leading international business organizations, USCIB provides business views to policy makers and regulatory authorities worldwide, and works to facilitate international trade and investment. More at www.uscib.org.

Contact:
Jonathan Huneke, VP Communications, USCIB
+1 212.703.5043 or jhuneke@uscib.org

More on USCIB’s ATA Carnet Export Service

ICC Books USA online bookstore

Get Ready for the Mexico G20 Summit With Essential Resources from USCIB

Published on April 5, 2012
G20 leaders are making tracks for Los Cabos, and with informative, time-saving resources from USCIB, so can you.
G20 leaders are making tracks for Los Cabos, and with informative, time-saving resources from USCIB, so can you.

New York, N.Y., April 5, 2012 – Are you planning to cover or attend the G20 Summit in Los Cabos, Mexico this June?  Time-saving, informative resources from the United States Council for International Business (USCIB) can help get you on your way. What’s more, you’ll save money and hassle if you’re bringing video gear or other valuable professional equipment into the country.

USCIB is a business association that serves as the U.S. arm of the International Chamber of Commerce, the world business organization whose online bookstore (www.ICCBooksUSA.net) currently features a timely publication, “The G20 – What it is and what it does: A business guide.”

An essential guide for business executives, policy makers and the media. This handbook explains in detail what the G20 is, traces its origins and explains the reasons for its transformation into a top leadership group. It identifies the critical impacts that G20 policy developments may have on global economic activity and focuses on issues of special interest for business. Click here to order your copy today.

Merchandise passports speed shipment of your gear

Media representatives should know about the ATA Carnet export service from USCIB. Carnets are internationally recognized customs documents that speed delivery of professional equipment, as well as professional samples and goods for trade shows, to over 80 countries and customs territories, duty- and tax-free.

Mexico began accepting these “merchandise passports” last year, just in time for the global media onslaught that accompanies the G20 Summit. Goods brought into Mexico under Carnet and re-exported within one year are not subject to import duties or taxes.

Applying for a Carnet is easy, and Carnets are a simpler alternative to temporary import bonds or other products. More information is available at www.merchandisepassport.org. USCIB has a Mexico Carnet resources page to view click here.

So get informed, get a Carnet, get your gear, and get ready to cover the G20 Summit.

About USCIB:

USCIB promotes open markets, competitiveness and innovation, sustainable development and corporate responsibility, supported by international engagement and prudent regulation. Its members include top U.S.-based global companies and professional services firms from every sector of our economy, with operations in every region of the world.

With a unique global network encompassing leading international business organizations, USCIB provides business views to policy makers and regulatory authorities worldwide, and works to facilitate international trade and investment. More at www.uscib.org.

Contact:
Jonathan Huneke, VP Communications, USCIB
+1 212.703.5043 or jhuneke@uscib.org

More on USCIB’s ATA Carnet Export Service

ICC Books USA online bookstore

WTO Video Interview Features ICC ViceChairman and Honorary Chairman

Published on March 27, 2012

The World Trade Organization (WTO) recently interviewed ICC Vice-Chairman Harold McGraw III and ICC Honorary Chairman Victor K. Fung for its online video series “WTO Forum.” Mr. McGraw, president and CEO of The McGraw-Hill Companies, also serves as chairman of USCIB.

In the video interview, WTO spokesman Keith Rockwell asked Mr. McGraw, “What sort of things should the WTO be doing for you and your business?” He then asked Mr. Fung, chairman of the Li & Fung Group, “What can the WTO do to jumpstart the global economy?”

The program was filmed March 14 at the WTO headquarters in Geneva, on the occasion of the first conference on the ICC Business World Trade Agenda. Mr. McGraw and Mr. Fung were among business leaders and trade experts who met in Geneva as part of the ICC initiative that proposes business works together with governments to drive more effective trade talks.

Watch this WTO video interview “What do businesses want from the multilateral trading system?”

ICC Roundtable on Competition Policy Will Focus on Themes Competition Enforcement and Compliance

Published on March 23, 2012
Panelists include senior officials from government agencies, competition experts from the private sector and high-level academics
Panelists include senior officials from government agencies, competition experts from the private sector and high-level academics

The International Chamber of Commerce (ICC), on the occasion of the 11th International Competition Network (ICN) Annual Conference, is hosting its fourth roundtable on competition policy in Rio de Janeiro on April 16, 2012. The central themes for this year’s roundtable conference are “Competition, Enforcement and Compliance.”

“The ICC roundtable is a unique opportunity to participate in a debate with officials of competition agencies from all over the world and business executives on topics that are shaping the current competition system and rules,” said Paul Lugard, acting chair of the ICC Commission on Competition.

“As in past years, I expect that this roundtable will provide a valuable forum for dialogue between the enforcement agencies and business representatives on important competition law issues,” added Michael Blechman, chair of USCIB’s Competition Committee and vice-chair of the ICC Commission on Competition.

Launched in 2009, this half-day high-level forum has previously looked at topics such as the cooperation between business and agencies in competition law enforcement and possible improvements to this system. Best practices in competition law, particularly from the angle of due process requirements, were discussed in 2010. Last year’s theme “Competition and Innovation” examined the interface between competition and innovation policy as a driver for economic growth and the impact of unilateral company conduct on consumer welfare.

This year’s focus on enforcement and compliance includes panels on South American enforcement priorities and business responses to those priorities, as well as company strategies to improve antitrust compliance. Participants are invited to take an interactive part in panel discussions.

This year’s roundtable panelists will include senior officials from government agencies around the world, competition experts from the private sector and high-level academics.

Click here to read more on ICC’s website.

ICC Competition Commission

More on USCIB’s Competition Committee

USCIB Urges Passage of Permanent Normal Trade Relations With Russia

Published on March 14, 2012

4271_image001New York, N.Y., March 14, 2012 – The United States Council for International Business (USCIB), which represents America’s top global companies, is urging Congress to approve permanent normal trade relations (PNTR) with Russia, calling it essential for American business to fully benefit from new opportunities resulting from the country’s accession to the World Trade Organization.

“Russia has made, and continues to make, important progress in opening up its economy and building a more secure, predictable environment for business,” said USCIB President and CEO Peter M. Robinson. “As the world’s 11th-largest economy, with a burgeoning middle class and growing demand for U.S. goods and services, it’s far too important a market for us not to be fully engaged there.”

Under the terms of its WTO accession, Russia is obligated to implement a broad range of economic reforms that will further open its market to foreign goods and services, safeguard foreign investments, ensure greater respect for the rule of law and improve intellectual property protection. Business opportunities for U.S. firms in Russia are expected to grow in the coming years, with infrastructure and consumer spending predicted to increase significantly.

Passage of PNTR is required to graduate Russia from trade restrictions under the 1970s-era Jackson-Vanik amendment, a Cold War-era relic that has been deemed to violate WTO rules. Without the removal of Jackson-Vanik restrictions, Russia will not be obligated to extend the benefits of WTO accession to U.S. exporters, thereby putting them at a competitive disadvantage in the country.

Mr. Robinson cited Russia’s recent signature of the OECD Anti-Bribery Convention as an important indication that the country intends to rein in corruption and provide a fairer, more predictable environment for foreign companies. “The country is also working toward joining the OECD as a whole, which would entail significant additional liberalization measures,” he added.

Through its membership in BIAC, the Business and Industry Advisory Committee to the OECD, USCIB is working to advise the OECD and its member governments on appropriate terms for Russian entry into the organization, and is assessing the potential impact for U.S. business of Russian OECD membership.

About USCIB:

USCIB promotes open markets, competitiveness and innovation, sustainable development and corporate responsibility, supported by international engagement and prudent regulation. Its members include top U.S.-based global companies and professional services firms from every sector of our economy, with operations in every region of the world. With a unique global network encompassing leading international business organizations, USCIB provides 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.

Contact:

Jonathan Huneke, VP communications, USCIB

(212) 703-5043 or jhuneke@uscib.org

More on USCIB’s Trade and Investment Committee