Kira Yevtukhova Archives

State Department Seeks Private Sector Expertise Via Franklin Fellows Program

Published on March 12, 2012

The range and complexity of issues facing Americans and the international community is immense. To strengthen their ability to deal with these issues and to involve Americans in creating the policies to confront them, the Department of State and the U.S. Agency for International Development (USAID) created the Franklin Fellows Program.

This program provides unique opportunities for experts with a minimum of five years of relevant, professional-level experience to perform a year of public service as Franklin Fellows at the Department of State or USAID. Fellows continue to draw their salary and benefits from recognized employing companies and organizations while they are seconded to State or USAID.

The goal of the program is for Fellows to provide valuable and pertinent advice, views, opinions, alternatives or recommendations on foreign policy and development issues facing the nation, while participating in the implementation of those policies. A number of USCIB member companies have sponsored participating Fellows.

Such critical international security challenges include: bilateral and multilateral diplomacy; foreign assistance implementation; nonproliferation; human rights and democracy promotion; protecting the environment; global women’s issues; terrorism; public diplomacy; consular services to U.S. citizens; promoting trade; war crimes issues; the global scourges of HIV/AIDS and other trans-national diseases; and many more.

Who Is Eligible? The Franklin Fellows Program is open to mid/upper-level professionals from both private-sector and non-profit entities. (It is not open to U.S. government employees.) Applicants must have a minimum of five years of professional-level experience relevant to the requested assignment, be U.S. citizens and be able to obtain a security clearance.

The Franklin Fellows Program welcomes seasoned professionals with a broad range of backgrounds and experiences. In addition to their duties at State or USAID, Fellows may interact via the interagency process with other government and international entities. Fellows will enhance their own knowledge of government and of global issues, gaining valuable professional experience and enriching their nominating organizations and communities upon their return.

For more information on the Franklin Fellows Program, please visit www.careers.state.gov/ff, or contact program coordinator William P. Pope (261-8863 or popewp@state.gov).

European Chambers Bid to Host 9th World Chambers Congress

Published on March 9, 2012

Chambers of commerce from Biarritz, Dublin, Geneva, Gothenburg, Liverpool, Lyon, Manchester, Northern Ireland and Torino have confirmed their bids to host the ICC World Chambers Federation (WCF) 9th World Chambers Congress upon its return to Europe in 2015. Held every two years in different regions of the world, the World Chambers Congress is the only international forum for chamber of commerce leaders to share best-practice experience, develop networks and learn about new areas of innovation from other chambers, as they face the challenge of remaining relevant to companies in their region. The 8th
Congress will be held in Doha, Qatar April 22-25, 2013.

“We have been overwhelmed by the enthusiasm of chambers from around the world who have embraced the Congress as their event to reach out and build relationships with their peers, and explore together how chambers are adapting to serve their local business communities,” said WCF Chair Rona Yircali. WCF will announce the winning 2015 Congress host in November. Mr. Yircali added, “The destination chosen by the WCF General Council must address the needs of all our Congress delegates, who come from more than 100 countries.”

World Chambers Federation (WCF)

Business Pushes for Robust Trans-Pacific Partnership Agreement

Published on February 28, 2012

New York, N.Y., February 28, 2012 – The United States Council for International Business (USCIB), which represents America’s leading global companies, has joined 30 other leading U.S. business associations in pressing for an ambitious and comprehensive Trans-Pacific Partnership agreement, with robust enforcement and dispute settlement provisions. The business groups made their case in a letter to President Obama in which they urged the United States to push back strongly against Australian resistance to investor-state dispute settlement mechanisms like those found in other U.S. trade agreements.

The letter pointed out that investor-state provisions are already included in thousands of trade agreements and related instruments worldwide, including many to which Australia is a party. Such provisions, the business associations said, “promote the rule of law and serve as an important backstop to ensure that investors who risk their capital, property and talent in foreign countries will be able to enforce due process, non-discrimination, basic property and related protections in a neutral, balanced and objective forum.”

USCIB co-chairs the TPP Business Coalition’s investment committee, reflecting its role as a premier voice for liberalization of both trade and investment regimes around the world.

USCIB and the other letter signatories said Australia’s intransigence regarding investor-state provisions is thwarting the ability of the TPP negotiations to develop strong enforcement rules, and is “having a corrosive effect on the level of ambition and other key aspects of the TPP negotiations.” They expressed fear that, should Australia extract such a major exemption, “other countries would press forward to seek their own major exemptions from core commitments, which would ultimately unravel the ability to achieve a comprehensive, 21st-century TPP agreement.”

The letter noted that business concerns in this area are of practical, bottom-line importance. “As data from the U.S. Department of Commerce’s Bureau of Economic Analysis has shown over the past several decades, the U.S. investment overseas that strong investment rules promote brings important benefits back to the United States,” the business groups wrote.

“Firms that invest overseas are more globally competitive, export more, invest more in research and development and capital investment in the United States and pay their workers more than purely domestic companies. Promoting and assuring a level playing field for both inbound and outbound investment is therefore vital for the United States and the other TPP negotiating partners.”

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

Business Applauds Rollback of Foreign Trade Zone Changes Urges Ex-Im Bank Reauthorization

Published on February 28, 2012

New York, N.Y., February 28, 2012 – The United States Council for International Business (USCIB), which represents America’s top global companies, applauded the Obama administration’s rollback of planned changes to the rules governing U.S. foreign trade zones (FTZs). USCIB had earlier said some of the proposed changes would impose significant hurdles for exporters.

The U.S. Foreign Trade Zone Board, an interagency body chaired by the Commerce Department, yesterday published final regulations that replace the current FTZ regulations. The new rules do away with a proposed change that would have required advance approval to bring goods into FTZs for manufacture, even for export, that would, if entered for consumption, be subject to antidumping or countervailing duty orders. In an October statement, USCIB and other industry groups had expressed serious concern about this proposed change.

“Our message all along has been that the Foreign Trade Zone Board should strongly promote, rather than inhibit, U.S. exports, and avoid taking steps that would result in a loss of manufacturing jobs in foreign trade zones,” said USCIB President and CEO Peter M. Robinson. “The proposed change would have negatively affected the ability of U.S. manufacturers to process materials for export, which runs counter to the purpose of a foreign trade zone.”

U.S. foreign trade zones accounted for $34.8 billion in exports in 2010 and employ some 330,000 American workers.

USCIB also joined with a number of other industry groups in urging quick passage of the four-year reauthorization bill for the Export-Import Bank of the United States. In a joint letter to President Obama, the groups said that “failure to reauthorize Ex-Im would amount to unilateral disarmament in the face of other nations’ aggressive trade finance programs.”

In a February 17 speech to workers at USCIB member company Boeing, Mr. Obama pledged to boost support for U.S. manufacturers facing subsidized foreign competition, in part through expanded Ex-Im financing for U.S. facing competition from state-subsidized firms.

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, USCIB

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

More on USCIB’s Customs and Trade Facilitation Committee

More on USCIB’s Trade and Investment Committee

USCIB Statement on President Obamas International Tax Proposals

Published on February 23, 2012

New York, N.Y., February 23, 2012 – The United States Council for International Business (USCIB) is pleased to see that President Obama’s proposals on business tax reform advocate lower rates and a more efficient corporate tax system. USCIB appreciates the recognition by the President and the Treasury Department that tax reform will take time, require work on a bipartisan basis, and benefit from additional feedback from stakeholders and experts.  We and our members hope to make a positive contribution to that debate.

USCIB is, however, disappointed by the international aspects of the president’s proposals on business tax reform.  USCIB President and CEO Peter M. Robinson stated: “The international provisions fail to recognize that U.S. business competes for customers in the global marketplace.  While most countries have adopted territorial systems seeking to facilitate the competitiveness of their multinationals by taxing income only where it is earned, the U.S. is going in the opposite direction.  By proposing a minimum tax on foreign earnings, a tax on so called ‘excess profits’ and the disallowance of interest expense, the administration proposes a step backwards.”

Mr. Robinson continued: “A minimum tax on foreign earnings will simply make American firms less competitive than foreign based multi-national enterprises.  Further, the likely response in the marketplace is to make the U.S. a less favored jurisdiction for establishing the headquarters of a multi-national business.  Who would choose to set up their business in the U.S. knowing that global expansion would result in a minimum tax?  Companies currently headquartered here may not have many options, but anyone advising a new entity would certainly suggest establishing foreign control from the outset. These tax policies could have a role in the acquisition of American companies by foreign competitors.  When companies are successful in global markets, it means new jobs in their home countries to support those global business opportunities. Discouraging U.S. headquarters will result in fewer American jobs.”

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 Taxation Committee

ICC-Ifo Survey Reveals Slight Brightening in World Economic Climate

Published on February 16, 2012
The road ahead looks brighter according to the latest ICC-Ifo survey.
The road ahead looks brighter according to the latest ICC-Ifo survey.

After two quarters of successive decline, the global economic climate has begun to improve, although it still remains significantly below its long-term average, according to the latest World Economic Survey, published today by ICC and the Munich-based Ifo Institute for Economic Research.The January survey polled 1,129 economic experts from business and academic institutions in 120 countries to assess current and expected economic developments. Their answers were analyzed to reach a quarterly figure representative of the current global economic climate.

While appraisals of the current situation were even poorer than the previous ICC-Ifo survey in October, overall improvement was driven by a more optimistic six-month outlook among experts. The economic climate in Western Europe changed little. While the current economic situation deteriorated further compared to the last quarter of 2011, the six-month outlook brightened slightly but continued to signal skepticism. North America marked a clear improvement from 2011, especially from the U.S., where both the current economic situation and the six-month outlook are more positive. Asia, on the other hand, is pointing to an economic slowdown, after significantly worse appraisals of the current situation further pushed the climate indicator below its long-term average.

Click here to read more on ICC’s website.

World Economic Survey graphs

WES Ifo Report

Business Urges Attention to Ongoing US-China Market Access Concerns

Published on February 14, 2012

4250_image002New York, N.Y., February 14, 2012 – As this week’s visit by Vice President Xi Jinping focuses attention on the complexity of U.S. relations with China, the United States Council for International Business (USCIB) is urging leaders from both countries to tackle important commercial and economic matters in order to keep this mutually beneficial relationship on an even keel.

 “The U.S.-China relationship extends across an array of geopolitical as well as economic issues, and our economies are now deeply intertwined,” stated USCIB President and CEO Peter M. Robinson.  “On balance, it provides significant benefits for both countries.  However, there remain too many commercial and economic issues handicapping the ability of American firms to compete in China and in third markets, thereby placing our workers at a disadvantage and impeding progress on the overall relationship.  These need to be urgently addressed.”

Mr. Robinson said major trade and investment priorities for American companies in China include, but are not limited to:

  • improving market access for key industries
  • resolving longstanding currency disputes
  • improving protection of intellectual property rights, and
  • ensuring competitive neutrality for state-owned enterprises.

“We urge the two governments to focus on resolving these issues through diplomatic means, both bilateral and multilateral, and to reinforce existing forums like the WTO, the Strategic and Economic Dialogue, and the Joint Commission on Commerce and Trade,” he said.

The USCIB president noted recent progress by China toward closer bilateral ties with other countries, including last week’s signature of a trade and investment agreement with Canada.  “We should be looking seriously at developing new agreements, such as a bilateral investment treaty (BIT) with China,” said Mr. Robinson.  “These could ensure continued liberalization of key markets and provide important security to American investments in the country.  Absent such agreements, American companies and workers could be disadvantaged when competing in China with companies from countries already benefitting from such agreements.  We shouldn’t be sitting on the sidelines.”

Mr. Robinson also called attention to an October USCIB statement on China’s compliance with its WTO accession commitments.  “As we noted in that statement, China has made important progress, but much work remains.  Priority issues include improving transparency in China’s regulatory environment, the need for fair and independent regulators, greater market access, non-discriminatory treatment and inadequate intellectual property laws.  We urge the U.S. and Chinese governments to take up these issues on a priority basis, and we stand ready to provide business views to help ensure a fully informed discussion.”

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 China Committee

More on USCIB’s Trade and Investment Committee

 

G20 Business Task Forces Launched for Mexico Summit

Published on January 30, 2012

At the World Economic Forum in Davos, Switzerland, the International Chamber of Commerce (ICC) has joined with WEF in organizing a number of business task forces designed to feed into this June’s B20 business summit, held in concert with the 2012 G20 Summit in Los Cabos, Mexico.  USCIB serves as ICC’s American affiliate, and USCIB Chairman Harold McGraw III, a vice chair of the world business body, is a member of ICC’s G20 Advisory Group.

In Davos, Mexican President Felipe Calderon personally invited ICC Secretary General Jean-Guy Carrier to take part in a breakfast meeting to launch task forces in preparation for the next B20 Business Summit.

Mr Calderon said he would organize individual video conferences with each working group. The aim of these task forces is to provide recommendations from global business to G20 leaders on key issues including food security, green growth, trade and investment, employment, advocacy and impact, transparency and anti-corruption, information and communication technologies and innovation, and finance.

Read more on ICC’s website.

In addition, ICC has published a review of its recent G20-related activities during 2011.  That review is available for download by clicking here.

Statement by USCIB on President Obama’s State of the Union Address

Published on January 25, 2012

New York, N.Y., January 25, 2012 – Peter M. Robinson, president and CEO of the United States Council for International Business, issued the following statement on last night’s State of the Union Address by President Obama:

We welcome the President’s call for closer international cooperation and expanded trade in support of American jobs and economic growth.  The business community, including the U.S.-based global companies that make up the core of USCIB’s membership, is contributing actively to this cause already through exports, R&D and other measures to increase our competitiveness in fast-growing overseas markets.

We support efforts to enable companies to hire more workers in the United States.  We were encouraged that the President chose to highlight the contributions of both exports and foreign investment to growing our economy and jobs base.  Similarly, it is important to recognize that when U.S-based companies succeed on the world stage, this too is good for U.S. workers, shareholders and communities.

U.S. businesses now operate in a world of highly competitive, multi-country supply chains. Their success serving overseas markets drives employment, R&D and growth at home.  The Administration and Congress must take steps to recognize the benefits of both inbound and outbound investment to our economy, support such investments, and avoid measures that penalize companies seeking to remain competitive in global markets.

We look forward to working with the Administration and Congress on a range of issues the President raised in his address, especially in the areas of trade, including trade with China, tax policy, energy policy and the development of green technologies.

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

Global Banking Survey Reveals Gloomy Outlook for Trade Finance

Published on January 19, 2012

4225_image002

New York, N.Y., January 19, 2012 – New research by the International Chamber of Commerce (ICC) and the International Monetary Fund (IMF) has revealed a pessimistic outlook for demand for trade finance products like letters of credit in 2012, largely as the result of the Euro crisis.

Based upon input from 337 financial institutions responding to a joint ICC-IMF survey, the findings also show a two-speed financial system: For emerging Asia the outlook is the strongest, while the Euro area is the weakest. Results of the survey were released today by the United States Council for International Business (USCIB), ICC’s American affiliate.

Around 60 percent of respondents indicated that the demand for trade in Asia will show improvement in 2012, while close to 50 percent of respondents predicted a further deterioration for the Euro area, USCIB said.

“These results illustrate how far, and how fast, the ripples from the Euro crisis are spreading,” said Michael F. Quinn, managing director with JP Morgan Global Trade and chair of USCIB’s Banking Committee. “The withdrawal of European banks from global trade finance has had a major impact on the ability of companies to arrange for trade finance in many markets, and we expect this to continue into the future.”

Factors contributing to the negative outlook for 2012 were primarily financial constraints that reduce the availability of trade finance. This was particularly acute for large banks and those with business in developing countries. Some 90 percent of respondents indicated that “less credit or liquidity available at counterparty banks” would affect their trade finance activities either to a “large extent” or to “some extent.” This share is substantially higher than the just over 50 percent that noted the same during the 2008-2009 financial crisis.

The financial constraints appeared to reflect the large share of trade finance coming from Euro-area banks. The survey showed that recent European bank deleveraging has led to tighter lending guidelines and reduced availability of credit/liquidity. In addition, U.S. dollar funding for non-U.S. financial institutions may exacerbate the situation, since trade remained largely denominated in U.S. dollars.

Many respondents noted that one of the challenges facing the global economy was a more stringent regulatory environment – as represented by the new Basel III capital framework – which may impede a trade-led recovery. This was of particular concern, as many countries were attempting to export their way out of their currently dire economic conditions. Recent measures taken by multilateral development banks and central banks to facilitate trade were perceived to be of some help. For instance, on the issue of the reactivation of central bank swap lines, close to 60 percent of respondents indicated that the swap lines have helped, but about one fifth were not sure.

Preparation for the implementation of Basel III seems to be already adding pressure on the cost of funds and the availability of liquidity. Close to three-quarters of respondents said they felt impacted either to some or to a large extent. Specifically, by not treating trade finance as a low-risk asset class from a regulatory perspective, the new Basel capital framework could make trade finance less accessible and less affordable to exporters and importers, especially small- and medium-sized enterprises.

In these circumstances, there is an urgent need for durable solutions to be forged at the international level. “The pursuit of essential public finance and regulatory reforms is crucial in 2012 and beyond,” said Kah Chye Tan, global head of trade and working capital at Barclays Corporate in London and chair of ICC’s Banking Commission. “We caution the use of uncoordinated national initiatives and the layering of regulatory requirements which may pressure trade flows and eventually negatively impact on growth worldwide. This new ICC-IMF research calls on standard setters and policymakers to carefully study the potential unforeseen impact of proposed Basel III changes on trade finance.”

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
+1 212.703.5043 or jhuneke@uscib.org

ICC-IMF trade finance survey results

More on USCIB’s Banking and Trade Finance Committee