Benefits of Self-Regulation in Marketing Put Forward at Chile Conference

At the workshop in Santiago, Chile (L-R): Chris Martin (USCIB), Sebastian Goldsack Trebilcock (DMA Chile), Alvaro Díaz (AMF Variable Printing); DMA Chile President Rodrigo Edwards (Edwards Associates), Juan Pablo (Viva!), Martín Baeza (COPESA).
At the workshop in Santiago, Chile (L-R): Chris Martin (USCIB), Sebastian Goldsack Trebilcock (DMA Chile), Alvaro Díaz (AMF Variable Printing); DMA Chile President Rodrigo Edwards (Edwards Associates), Juan Pablo (Viva!), Martín Baeza (COPESA).

With business facing calls from Chilean legislators for significant new regulation in marketing and advertising, Chile’s Direct Marketing Association invited Chris Martin, USCIB’s manager for marketing and ICT policy, to address an October conference promoting self-regulation as a better alternative.  USCIB’s Marketing & Advertising Committee is focused on promoting strong and effective marketing self-regulation around the world.

In response to some privacy concerns around the potential tracking of consumer information, Chile is considering an across-the-board “opt-in” provision, which would require consumers to opt in to marketing communications on any platform, including mail, telephone, and digital.  While some countries have privacy laws around marketing and advertising, very few have in place or are considering quite as sweeping regulation as that being proposed in Chile.

“It is important for Chilean businesses and policymakers to understand how self-regulation is addressing similar privacy issues in other jurisdictions like the U.S. and Europe,” said Mr. Martin.  “Especially with regard to digital advertising, the U.S. business community has pioneered self-regulation that responds to privacy concerns and USCIB has been a forceful advocate for harmonizing a global self-regulatory approach, one that balances these important privacy issues with the need to ensure that innovative content and services on the Web can continue to be funded through advertising in order to keep them free or low-cost to consumers.”

As the U.S. affiliate to the International Chamber of Commerce (ICC), USCIB actively promoted new principles and standards around online advertising in the ICC’s recently revised Marketing & Advertising Code.  Available and searchable online at www.codescentre.com, the Code sets the international gold-standard for ethical standards in marketing by providing guidance to global industry and self-regulatory initiatives.

“The problem in Chile, as well as other regions that are considering privacy-focused regulation, is that policymakers often do not understand the impact of the laws they are proposing,” said Sebastián Goldsack Trebilcock, Executive Director, DMA Chile.  “Having USCIB come down and speak in Chile about what business is doing in the U.S. and globally helps us in our local efforts to educate regulators and inform the business community about self-regulatory models being deployed in other markets.”

While it may seem counter-intuitive to put forward self-regulation as an effective means of addressing privacy concerns, it has proved effective in many ways, according to Mr. Martin.  “What would the Internet look like today if strident privacy regulation had been in place at the outset of the Internet?” he asked.  “Would we have all the free content and services we enjoy today, like Google, Facebook, Twitter, Pandora, free news sites and any number of these things that we take for granted?  It is worth considering.  I hope the next big idea has just as much opportunity to take hold and change our world.”

Staff contact: Chris Martin

More on USCIB’s Marketing and Advertising Committee

USCIB Welcomes Rep. Camp’s Tax Proposal

Washington, D.C., October 31, 2011– The United States Council for International Business (USCIB), a pro-trade group which represents America’s top global companies before the U.S. government and in major international forums, welcomed proposed tax reform measures put forward by Rep. David Camp (R – Mi.), chairman of the House Ways and Means Committee.

“We are pleased to see Chairman Camp’s proposal on tax reform,” said USCIB President and CEO Peter M. Robinson.  “The high rates and worldwide system of taxation of the United States are out of step with the rest of the world.  U.S. business supports efforts to achieve reform of these rules.  Chairman Camp’s proposal represents an important first step.”

Mr. Robinson underscored the importance of maintaining a level playing field for all companies in the context of U.S. tax reform.  “We must ensure that legislative alternatives intended to protect the tax base do not disfavor U.S. companies versus their competitors,” he said.  “We look forward to working with Chairman Camp and other members of Congress and the administration to achieve bipartisan business tax reform.”

Through its affiliation with the Business and Industry Advisory Committee to the OECD, USCIB works closely with the U.S. and other governments to provide business input and promote closer international cooperation on tax matters, including the OECD Model Tax Treaty and the OECD Transfer Pricing Guidelines.

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 BIAC, 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
+1 212.703.5043, jhuneke@uscib.org

More on USCIB’s Taxation Committee

New Report Proves Trade Finance Is Low-Risk, Asks Regulators and G20 to Unlock Trade

4182_image002Beijing and New York, N.Y., October 26, 2011 –The rules set by bank regulators impose unwarranted capital requirements that choke trade and have adverse impacts on growth. A new report issued today by the International Chamber of Commerce (ICC) shows that trade finance is a relatively low-risk asset class that should not be feared by banks, nor over regulated by governments, according to ICC’s American national committee, the United States Council for International Business (USCIB).

ICC also said it was pleased that the Basel Committee on Banking Supervision had announced measures yesterday that recognize trade finance as a low-risk activity for banks, and said that there is opportunity to further refine the rules to foster the development of trade and the support of SME clients. ICC asserted that treating trade finance as a unique asset class to accurately reflect its low risk will help foster more trade and create jobs.

“The ICC report provides a compelling case for the Basel Committee to reduce the proposed capital requirements, which by some estimates effectively increase the cost of trade finance by 30 to 40 percent ,for importers and exporters around the world,” said Michael Quinn, managing director with JP Morgan and chair of the USCIB’s Banking Committee.  “As the rules have yet to be finalized, this ICC effort will hopefully address major concerns in the Basel Committee’s original recommendations.”

The new ICC report calls on standard setters and policy makers to carefully study the potential unforeseen impact of proposed Basel III changes on trade finance from the Basel committee and to make trade finance more accessible and affordable.

Reliable and cost-effective finance and guarantees to companies looking to import or export commodities, consumer goods, and capital equipment are critical to keep trade flowing within and between counties. World trade is, in turn, key to global economic growth.

The outlook on the risks of defaults in trade and finance were revealed in the ICC report Global Risks – Trade and Finance, issued on the occasion of a major ICC Banking Commission meeting taking place in Beijing from October 24 to 28.

The report was based on analysis of the ICC Trade Finance Register, the most comprehensive dataset available on the market. It contains data from major international banks reflecting a minimum of 60-65% of traditional global trade finance activity, worth about USD2-2.5 trillion. Fewer than 3,000 defaults were observed in the full data set of 11.4 million transactions.

The report also showed the short-term nature of trade transactions and recommended using the actual maturity of trade transactions to calculate risk requirements as opposed to the one-year standard proposed by regulators.

In the midst of the current global economic crisis, the ICC Banking Commission meeting brings together some 350 eminent banking professionals, international organizations and supervisory bodies from over 50 countries to examine the key trade and finance challenges faced by the industry.

The trade and finance experts at the ICC meeting also worked to frame business input to the G20 on stimulating jobs and growth, ahead of the upcoming G20 Summit in Cannes. The discussions were part of a series of regional consultations led by the ICC G20 Advisory Group around the world. Since its creation in May 2011, the G20 Advisory Group has been leading ICC’s efforts to develop policy input to the G20 process in areas including: trade and investment, financial regulation, anti-corruption, the international monetary system, commodity price volatility and green growth.

“Trade will play a key role in tackling the jobs crisis,” said Jean-Guy Carrier, ICC’s secretary general. “Economic growth depends largely on the capacity of G20 governments to improve the conditions for international trade, including easing trade finance rules. However, what we’re seeing is that protectionist measures are growing within the G20. This trend must be reversed and more needs to be done to dispel the myths that trade results in job losses. Trade is a dynamic process that contributes to job creation.”

Global Risks – Trade Finance 2011 is a useful tool for both policy-makers and senior executives in financial institutions around the world. It will enable institutions to better understand the level of risks involved in different trade finance products and allow bankers to benchmark their activities in a more rigorous fashion.

“I hope that by focusing on the critical connections between default levels in trade finance and the shaping of new regulatory recommendations, decision-makers will be able to engage collectively in efforts to improve the global financial system’s overall resilience,” said Kah Chye Tan, global head of trade and working capital, Barclays Corporate, and chair of the ICC Banking Commission.

To read the ICC response to the Basel Committee on Banking Supervision announcement on trade finance, please visit www.iccwbo.org.

About the International Chamber of Commerce

ICC is the world business organization, representing enterprises from all sectors in every part of the world. It promotes cross-border trade and investment and the multilateral trading system, and helps business meet the challenges and opportunities of globalization. Business leaders and experts drawn from ICC’s global membership establish the business stance on broad issues of trade and investment policy as well as on vital technical subjects. ICC enjoys a close working relationship with the United Nations and other intergovernmental organizations, including the World Trade Organization and the G20. ICC was founded in 1919. Today it groups hundreds of thousands of member companies and associations from 120 countries. For more information please visit www.iccwbo.org.

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.

More on USCIB’s Banking Committee

USCIB’s Adam Greene Named to Labor Department Advisory Committee

USCIB's Adam Greene
USCIB’s Adam Greene

New York, N.Y., October 26, 2011Adam Greene, USCIB’s vice president for labor affairs and corporate responsibility, has been named by Secretary of Labor Hilda Solis to serve on the National Advisory Committee for Labor Provisions of U.S. Free Trade Agreements.  The recently reconstituted advisory committee provides advice to the Secretary of Labor on the implementation of labor rules in existing free trade agreements, and on the labor provisions of FTAs being negotiated.

The committee’s other newly named business representatives all come from USCIB’s membership.  They include Darryl Knudsen of Gap Inc., Ed Potter of The Coca-Cola Company (chair of USCIB’s Labor and Employment Committee) and Anna Walker of Levi Strauss & Co.

“I am delighted that Secretary Solis has selected such solid business representatives for this important advisory committee,” said USCIB President and CEO Peter M. Robinson.  “Effectively navigating the intersection of trade and labor policies is critical if we are to move forward on trade, grow our economy and create quality American jobs.  I congratulate Adam Greene, Ed Potter, Darryl Knudsen and Anna Walker on their appointments and extend USCIB’s full support for their work.”

USCIB is the primary forum for American business in the area of international labor policy and the linkages between trade and labor.  As the American affiliate of the International Organization of Employers (IOE), USCIB plays a direct role in the tripartite International Labor Organization, working alongside government and trade union representatives to develop global labor and workplace standards and programs.  In addition, through its affiliation with the OECD’s Business and Industry Advisory Committee (BIAC), USCIB is actively involved in OECD work in the areas of employment, labor and social affairs, interacting with labor via BIAC’s counterpart organization, the Trade Union Advisory Committee.

Mr. Greene manages U.S. business participation in the development of international labor standards, and advises companies on international and regional trends in labor and employment policy.  He coordinates USCIB involvement in the ILO’s governing and standard setting bodies, and promotes the ILO Declaration on Fundamental Principles and Rights at Work.  He is vice chair of the Business Technical Advisory Committee on Labor Affairs to the Inter-American Conference of Ministers of Labor.

Labor representatives on the National Advisory Committee for Labor Provisions of U.S. Free Trade Agreements were drawn from the United Steelworkers, the United Auto Workers and the AFL-CIO, among others, while “public” representatives come from a number of academic institutions and think tanks.

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 global business organizations, including the IOE and BIAC, 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
+1 212.703.5043, jhuneke@uscib.org

More on USCIB’s Labor and Employment Policy Committee
More on USCIB’s Trade and Investment Committee

Business Urges Ambitious Approach in Pacific Trade Talks

Washington, D.C., October 19, 2011 – Following Congressional approval last week of the three long-pending free trade agreements, the business community in a letter today to President Obama is urging the United States to take an ambitious approach to a possible multilateral trade agreement with several Asia-Pacific nations.

The United States Council for International Business (USCIB), which represents America’s top global companies, has joined with a range of other leading industry associations in urging the U.S. to pursue “a comprehensive agreement that covers every sector and sub-sector of the U.S. economy” in the Trans-Pacific Partnership (TPP) negotiations currently underway with eight nations.

The business groups said such an approach would ensure that “the final TPP produces new economic opportunities and exports to sustain and increase American jobs [and] the maximum commercial benefits of the burgeoning Asia-Pacific market.”

Other parties to the TPP negotiations include Australia, Brunei, Chile, Malaysia, New Zealand, Peru, Singapore and Vietnam.  Taken together, these countries represent the third-largest U.S. export market.

“The TPP must be a gold-standard agreement for the 21st century,” stated USCIB President and CEO Peter M. Robinson.  “It needs to be ambitious and comprehensive, with high standards and all industry sectors covered, as the United States has sought to do via its bilateral trade and investment agreements.  When countries seek to carve out certain sectors for special protection, this can cause a downward spiral where the end product is a far less effective agreement than it could be.”

The joint industry letter underscored that carve-outs and exemptions would tend to undermine U.S. competitiveness, and would reduce the TPP’s economic appeal for exporters and global firms.

Mr. Robinson said the TPP talks had made important progress in establishing rules for liberalization of foreign investment, and promised to bear fruit in three areas not previously addressed via a binding multilateral trade agreement: supply-chain integration, rules for state-owned enterprises and regulatory coherence.

“Global growth, U.S. competitiveness and good American jobs rest increasingly on tackling issues beyond the scope of earlier trade agreements,” stated Mr. Robinson.  “That’s why it’s crucial that we address these in an ambitious, comprehensive manner via the TPP.”

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 for which it serves as U.S. affiliate, 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.

More on USCIB’s Trade and Investment Committee

As World Piracy Increases, More Ships Are Escaping Somali Pirates

Piracy on the world’s seas has risen to record levels, with Somali pirates behind 56 percent of the 352 attacks reported this year, the International Chamber of Commerce (ICC) and its International Maritime Bureau (IMB) revealed today in its latest global piracy report. Meanwhile, more Somali hijack attempts are being thwarted by strengthened anti-piracy measures.

“Figures for piracy and armed robbery at sea in the past nine months are higher than we’ve ever recorded in the same period of any past year,” said Pottengal Mukundan, director of IMB, whose Piracy Reporting Centre (PRC) has monitored piracy worldwide since 1991.

Demanding millions of dollars in ransom for captured ships and their crews, Somali pirates are intensifying operations not just off their own coastline, but further afield in the Red Sea – particularly during the monsoon season in the wider Indian Ocean. Although Somali pirates are initiating more attacks – 199 this year, up from 126 for the first nine months of 2010 – they are managing to hijack fewer vessels. Only 24 vessels were hijacked this year compared with 35 for the same period in 2010. Hijackings were successful in just 12% of all attempts this year, down from 28% in 2011.

IMB credits this reduction in hijackings to policing and interventions by international naval forces and the correct application of the industry’s latest Best Management Practice.

For 2011, pirates have taken 625 people hostage worldwide, killing eight people and injuring 41. Pirates are often heavily armed, using automatic weapons and rocket propelled grenades.

View the latest attacks on the IMB Live Piracy Map

Revised ICC Rules Boost G20 Efforts to Curtail Corruption

From left: Francois Vincke, vice-chair of the ICC Commission on Corporate Responsibility and Anti-Corruption; and Jean-Guy Carrier, ICC secretary general
From left: Francois Vincke, vice-chair of the ICC Commission on Corporate Responsibility and Anti-Corruption; and Jean-Guy Carrier, ICC secretary general

The International Chamber of Commerce (ICC) has launched the ICC Rules on Combating Corruption in response to the G20’s call on business to stamp out corruption. The new ICC rules delineate measures companies should take to prevent corruption, including strong measures to end bribery and extortion.

ICC pointed out that G20 efforts to stabilize the economy and stimulate economic growth, trade and employment must address the drain on the economy caused by corruption. ICC Secretary General Jean-Guy Carrier said: “Corruption is a real threat to the integrity of markets, especially at a time when confidence and stability are most needed. Stamping out corruption will stimulate job creation, boost business confidence and open doors for emerging markets to attract foreign direct investment.”

The World Bank has estimated that corruption reduced annual economic growth by up to 1%, while the IMF reports that investment in corrupt countries is reduced by at least 5% when compared to countries that are relatively corruption-free.

The G20 has pledged to ‘lead by example’ through its Anti-Corruption Action Plan, which calls for ratification of the United Nations Convention against Corruption (UNCAC) and adoption of other laws  aimed at thwarting bribery and corrupt practices, and also asks business to strengthen corporate efforts in fighting corruption. ICC has urged G20 leaders to ratify and implement UNCAC and encourages work with non-G20 states toward its universal adoption and implementation.

Read more on ICC’s website.

Download a PDF copy of the ICC Rules on Combating Corruption

Download the ICC’s Recommendations to the G20 on Fighting Corruption

Business Groups Appeal for Reversal of Foreign Trade Zone Changes

New York, N.Y., October 17, 2011 – Looming changes to the way goods are treated in U.S. Foreign Trade Zones have drawn an appeal from a range of pro-trade business groups, which say the changes will undercut the Obama administration’s National Export Initiative and cost American jobs.

The United States Council for International Business (USCIB), which represents top U.S. multinational companies and exporters, and other industry groups have appealed to Acting Commerce Secretary Rebecca Blank and Treasury Secretary Timothy Geithner to halt a planned rule change by the U.S. Foreign Trade Zone Board (FTZB), an interagency body chaired by the Commerce Department, that would automatically apply U.S. anti-dumping and countervailing duties on imports processed through foreign trade zones.

“Given the administration’s high priority for export growth, the FTZB rules should strongly promote, rather than inhibit, U.S. exports,” the business groups wrote in their letter.  “Unfortunately, the proposed FTZB regulations would harm President Obama’s National Export Initiative and result in a loss of manufacturing jobs in U.S. Foreign Trade Zones.”

For the past 20 years, such duties have been waived on imports provided the finished products were not ultimately imported into the customs territory of the United States.  The new rule would make such a waiver dependent on a finding that it was in the public interest, effectively nullifying the benefit to businesses of utilizing U.S. foreign trade zones.

“Foreign Trade Zones are one of the critical avenues for promoting exports and manufacturing jobs in the United States,” stated Jerry Cook, vice president, international with HanesBrands, Inc. and chair of USCIB’s Customs and Trade Facilitation Committee.  “We must do all that we can to foster these vital functions, rather than inhibit them.”

In their letter, USCIB and the other business groups noted that foreign trade zones accounted for $28 billion in exports in the most recent year available and employ 330,000 American workers.  They said the rule change would “drive U.S. manufacturing to other countries, where the same activity could take place without undue delay, risk or expense.”  U.S. manufacturers would suffer in competition with foreign factories, which will lead to the further loss of U.S. manufacturing jobs, they wrote.

Other signatories to the letter included American Apparel & Footwear Association, American Association of Exporters and Importers, American Institute for International Steel, Consuming Industries Trade Action Coalition, Emergency Committee for American Trade, National Association of Foreign Trade Zones, TechAmerica, and the U.S. Chamber of Commerce.

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.

Business letter to Secretaries Blank and Geithner

More on USCIB’s Customs and Trade Facilitation Committee

More on USCIB’s Trade and Investment Committee

USCIB Applauds Approval of FTAs, Urges U.S. to Push Ahead on Trade

Washington, D.C., October 12, 2011 – The United States Council for International Business (USCIB), a pro-trade group which represents America’s top global companies before the U.S. government and around the world, welcomed today’s approval by the House and Senate of U.S. free trade agreements with Colombia, Korea and Panama.

“The business community is pleased that Congress moved on all the agreements in one concerted effort, demonstrating bipartisan support for trade,” stated USCIB President and CEO Peter M. Robinson.  “These agreements will strengthen U.S. competitiveness by opening up three important trading partners for more U.S. exports, supporting new jobs at home.  We hope they signal the beginning of a more ambitious trade and investment agenda to grow our economy.”

Mr. Robinson said approval sent an important message to countries around the world that the U.S. would not shrink from its international commitments or global leadership.  “The United States must be in the vanguard of efforts to open up markets abroad – bilaterally, in regional forums, and at the multilateral level,” he said.

“Passage of these free trade agreements will also assure countries in Latin America and Asia that the United States continues to be engaged in those regions and to support its allies,” added Mr. Robinson.  “ U.S. economic and political support for Colombia, Korea and Panama will enhance our national security while bolstering our economy.”

In 2010, exports supported an estimated 9.2 million American jobs, according to the U.S. Trade Representative’s office, and those are positions that pay well: Americans whose jobs are supported by goods exports earn between 13 and 18 percent more than the national average.

The Korea agreement alone is expected to generate significant opportunities for U.S. exports.  The International Trade Commission estimates that tariff cuts will increase exports of American goods by  more than $10 billion, supporting some 70,000 American jobs, to say nothing of additional opportunities brought about by the agreement’s elimination of non-tariff barriers, increased intellectual property protection and opening up of Korea’s market for American services.

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.

More on USCIB’s Trade and Investment Committee

ICC Issues Third G20 Newsletter

Corporate economists from around the world meet with members of the ICC G20 Advisory Group.
Corporate economists from around the world meet with members of the ICC G20 Advisory Group.

The International Chamber of Commerce has released the third issue of the G20 Executive Brief, a newsletter aimed at keeping the organization’s international network and the business community informed of its activities ahead of this year’s G20 Summit, November 3-4 in Cannes. Since its creation in May 2011, the G20 Advisory Group has been leading ICC’s efforts to develop policy input to the G20 process in areas including: trade and investment, financial regulation, anti-corruption, the international monetary system, commodity price volatility and green growth.