Kira Yevtukhova Archives

ICC Urges G8 to Press for Global Trade Accord

Published on May 23, 2007
Leaders of the world’s richest countries will gather at the annual G8 summit in Heiligendamm, Germany June 6-8.
Leaders of the world’s richest countries will gather at the annual G8 summit in Heiligendamm, Germany June 6-8.

Halting investment protectionism, encouraging energy efficiency and stopping counterfeiting and piracy also business priorities for G8 summit

Paris and New York, May 23, 2007 – Even at this desperately late hour, a good deal can be struck in the Doha round of multilateral trade talks if G8 leaders intensify their diplomatic efforts, the International Chamber of Commerce said today in its annual statement on behalf of the world business community to the heads of state and government who will attend the G8 summit.

Leaders of the world’s richest countries will gather at the annual G8 summit in Heiligendamm, Germany on 6-8 June to find ways of addressing the most pressing issues affecting the world economic order.

With more than 8,000 member companies in over 130 countries, the Paris-based ICC is the largest, most representative private sector association in the world.  The United States Council for International Business (USCIB), based in New York, serves as ICC’s American national committee.

Last month, USCIB Chairman William G. Parrett, CEO of Deloitte and a member of the ICC Executive Board, took part in the first-ever G8 business summit in Berlin, where the heads of major business federations from each of the G8 nations met with German Chancellor Angela Merkel to urge action on the key issues reflected in the ICC statement.

The Doha trade round represents a historic opportunity to generate economic growth, raise living standards and create potential for development across the world that should not be squandered. World leaders need to urgently devote their personal attention to reaching an agreement so that rapid progress can be made on the contours of a balanced package of measures to substantially improve market access in agriculture, industrial products and services, facilitate trade and update WTO rules.

It seems that a final and very narrow window of opportunity has opened up to forge an agreement in the weeks ahead, even though the U.S. Congress will have to be called upon to extend the president’s trade negotiating authority, ICC said.

ICC has a close working relationship with the G8 and many other intergovernmental organizations, including the World Trade Organization and the United Nations. The core mission of ICC is to promote trade and investment across frontiers and help business corporations meet the challenges and opportunities of globalization.

Reverse the trend toward investment protectionism
G8 governments must set an example for the rest of the world and roll back the tide of investment protectionism showing renewed vigor – including within some G8 countries, ICC urged. Cross-border investment is crucial to spread the benefits of globalization more widely, since foreign direct investment plays an important role in transferring technology, know-how and management skills to developing countries, the statement said.

Encourage energy efficiency
ICC welcomed the focus at this year’s summit on energy efficiency, but asked G8 leaders to keep in mind that investments on the massive scale needed to stimulate innovation will require a more favorable policy and regulatory framework. Strict adherence to a number of conditions is also a prerequisite, such as upholding laws against corruption, ensuring fair competition, and guaranteeing contracts.

But lack of global consensus and stable policies is discouraging innovation and investment in future sources of clean energy, ICC said. The UN Framework Convention on Climate Change provides a useful forum for international cooperation to help reduce greenhouse gas emissions over the longer term.

Uphold commitments to curb counterfeiting and piracy
While counterfeiting and piracy remain a topic at this year’s G8, deeds continue to fall short of words in addressing a global epidemic that leaves virtually no sector untouched, ICC said.

ICC called on the G8 to make counterfeiting and piracy a higher priority by gathering more accurate data, launching public awareness campaigns of the damage done, and improving training and cooperation of national enforcement agencies. ICC’s initiative, Business Action to Stop Counterfeiting and Piracy, addresses these issues in a comprehensive anti-counterfeiting plan that fosters world business collaboration with government.

USCIB promotes an open system of global commerce in which business can flourish and contribute to economic growth, human welfare and protection of the environment.  Its membership includes some 300 U.S. companies, professional service firms and associations whose combined annual revenues exceed $3 trillion.  As American affiliate of the leading international business and employers organizations, including ICC, USCIB provides business views to policy makers and regulatory authorities worldwide and works to facilitate international trade.

Contacts:

Jonathan Huneke, VP of Communications, USCIB
+1 212 703 5043 or jhuneke@uscib.org

Mary Kelly, Director of Communications, ICC
+33 1 4953 2987 or mary.kelly@iccwbo.org

ICC statement to G8 leaders

Press release: At G-8 Business Summit, USCIB Chairman Urges Governments to Avoid Investment Protectionism (April 24, 2007)

ICC Urges G8 to Press for Global Trade Accord

Published on May 23, 2007

Halting investment protectionism, encouraging energy efficiency and stopping counterfeiting and piracy also business priorities for G8 summit

Leaders of the world’s richest countries will gather at the annual G8 summit in Heiligendamm, Germany June 6-8.
Leaders of the world’s richest countries will gather at the annual G8 summit in Heiligendamm, Germany June 6-8.

Paris and New York, May 23, 2007 – Even at this desperately late hour, a good deal can be struck in the Doha round of multilateral trade talks if G8 leaders intensify their diplomatic efforts, the International Chamber of Commerce said today in its annual statement on behalf of the world business community to the heads of state and government who will attend the G8 summit.

Leaders of the world’s richest countries will gather at the annual G8 summit in Heiligendamm, Germany on 6-8 June to find ways of addressing the most pressing issues affecting the world economic order.

With more than 8,000 member companies in over 130 countries, the Paris-based ICC is the largest, most representative private sector association in the world.  The United States Council for International Business (USCIB), based in New York, serves as ICC’s American national committee.

Last month, USCIB Chairman William G. Parrett, CEO of Deloitte and a member of the ICC Executive Board, took part in the first-ever G8 business summit in Berlin, where the heads of major business federations from each of the G8 nations met with German Chancellor Angela Merkel to urge action on the key issues reflected in the ICC statement.

The Doha trade round represents a historic opportunity to generate economic growth, raise living standards and create potential for development across the world that should not be squandered. World leaders need to urgently devote their personal attention to reaching an agreement so that rapid progress can be made on the contours of a balanced package of measures to substantially improve market access in agriculture, industrial products and services, facilitate trade and update WTO rules.

It seems that a final and very narrow window of opportunity has opened up to forge an agreement in the weeks ahead, even though the U.S. Congress will have to be called upon to extend the president’s trade negotiating authority, ICC said.

ICC has a close working relationship with the G8 and many other intergovernmental organizations, including the World Trade Organization and the United Nations. The core mission of ICC is to promote trade and investment across frontiers and help business corporations meet the challenges and opportunities of globalization.

Reverse the trend toward investment protectionism

G8 governments must set an example for the rest of the world and roll back the tide of investment protectionism showing renewed vigor – including within some G8 countries, ICC urged. Cross-border investment is crucial to spread the benefits of globalization more widely, since foreign direct investment plays an important role in transferring technology, know-how and management skills to developing countries, the statement said.

Encourage energy efficiency

ICC welcomed the focus at this year’s summit on energy efficiency, but asked G8 leaders to keep in mind that investments on the massive scale needed to stimulate innovation will require a more favorable policy and regulatory framework. Strict adherence to a number of conditions is also a prerequisite, such as upholding laws against corruption, ensuring fair competition, and guaranteeing contracts.

But lack of global consensus and stable policies is discouraging innovation and investment in future sources of clean energy, ICC said. The UN Framework Convention on Climate Change provides a useful forum for international cooperation to help reduce greenhouse gas emissions over the longer term.

Uphold commitments to curb counterfeiting and piracy

While counterfeiting and piracy remain a topic at this year’s G8, deeds continue to fall short of words in addressing a global epidemic that leaves virtually no sector untouched, ICC said.

ICC called on the G8 to make counterfeiting and piracy a higher priority by gathering more accurate data, launching public awareness campaigns of the damage done, and improving training and cooperation of national enforcement agencies. ICC’s initiative, Business Action to Stop Counterfeiting and Piracy, addresses these issues in a comprehensive anti-counterfeiting plan that fosters world business collaboration with government.

USCIB promotes an open system of global commerce in which business can flourish and contribute to economic growth, human welfare and protection of the environment.  Its membership includes some 300 U.S. companies, professional service firms and associations whose combined annual revenues exceed $3 trillion.  As American affiliate of the leading international business and employers organizations, including ICC, USCIB provides business views to policy makers and regulatory authorities worldwide and works to facilitate international trade.

Contacts:

Jonathan Huneke, VP of Communications, USCIB

+1 212 703 5043 or jhuneke@uscib.org

Mary Kelly, Director of Communications, ICC

+33 1 4953 2987 or mary.kelly@iccwbo.org

ICC statement to G8 leaders

Press release: At G-8 Business Summit, USCIB Chairman Urges Governments to Avoid Investment Protectionism (April 24, 2007)

USCIB Welcomes Bipartisan Trade Policy Accord

Published on May 14, 2007

3699_image002New York, N.Y., May 14, 2007 – The United States Council for International Business (USCIB), which represents hundreds of America’s top global companies, welcomed the agreement between the White House and Congress on a new trade policy “template,” which it said should clear the way toward approval of pending U.S. free trade pacts and renewal of the president’s trade negotiating authority.

USCIB, the U.S. affiliate of the International Organization of Employers, which represents business in the International Labor Organization, said it was especially pleased that negotiators had forged a compromise approach to incorporating international labor principles into U.S. trade agreements that recognizes the role of the ILO to help its member countries advance labor conditions.

USCIB President Peter M. Robinson applauded the efforts of U.S. Trade Representative Susan Schwab and Rep. Charles Rangel, chairman of the House Ways and Means Committee, to conclude the deal.

“Ambassador Schwab and Chairman Rangel have worked tirelessly to forge a bilateral consensus on trade policy, paving the way for further trade liberalization that will benefit business, workers, consumers and farmers,” stated Mr. Robinson.  He noted that, at last December’s USCIB annual award dinner, Congressman Rangel had underscored his strong interest in promoting a forward-looking trade agenda.  “The Chairman delivered, and we are most appreciative.”

Mr. Robinson said the way was now clear to gain approval of the free trade agreements currently before the Congress.  “Hopefully, Congress will approve these FTAs and extend the president’s trade promotion authority,” he stated.  “Extension of trade authority is urgently needed to generate movement in the Doha Round, which is a high priority for U.S. business.”

Mr. Robinson said he was gratified that the agreement’s labor provisions prominently feature the International Labor Organization’s Declaration on Fundamental Principles and Rights at Work, which was developed at the initiative of the International Organization of Employers’ members, including USCIB.  The ILO’s tripartite structure encompasses representation from governments, employers and trade unions, so the ILO declaration’s principles have the support of all three groups in the U.S. and internationally.  It is therefore appropriate to reaffirm them in U.S. trade agreements as objectives that all countries should recognize and strive to realize in their national laws.

USCIB said it recognized that the negotiations on transforming the agreement, presently in the form of a joint “concept paper,” into legislation would require continued bipartisan cooperation between the Executive Branch and Congress.  It also recognizes that concerns may persist in the business community on non-labor issues covered by the agreement, particularly on intellectual property.  “We are confident that, at the end of the day, the same sense of bipartisanship that led to this agreement will carry forward in the drafting of actual legislation,” stated Mr. Robinson.

The United States Council for International Business promotes an open system of global commerce in which business can flourish and contribute to economic growth, human welfare and protection of the environment.  Its membership includes more than 300 leading U.S. companies, professional services firms and associations whose combined annual revenues exceed $3.5 trillion.  As the exclusive American affiliate of three key global business groups – 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.

Contact:

Jonathan Huneke, USCIB

Tel: +1 212 703 5043 or +1 917 420 0039 (mobile)

E-mail: jhuneke@uscib.org

More on USCIB’s Trade and Investment Committee

More on USCIB’s Labor and Employment Committee

International Chamber of Commerce Appoints New Representative to the United Nations

Published on May 10, 2007
Louise Kantrow, the world business organization’s new permanent representative to the UN.
Louise Kantrow, the world business organization’s new permanent representative to the UN.

Paris and New York, May 10, 2007 – The International Chamber of Commerce (ICC) has appointed Louise Kantrow, a former United Nations official with extensive experience in the government and nonprofit arenas, as its new permanent representative to the UN.

In April, Ms. Kantrow succeeded William J. Stibravy, ICC’s longstanding UN representative, who has retired following over a quarter-century representing business in the world body.  Like him, she will be based in the Manhattan offices of ICC’s American national committee, the United States Council for International Business (USCIB).

“ICC’s links to the UN span over 60 years,” noted ICC Secretary General Guy Sebban. “Thanks to her skills and experience, Ms. Kantrow will efficiently take on the vital role of ICC ‘s UN representative.”

With more than 8,000 member companies in over 140 countries, the Paris-based ICC is the largest, most representative private-sector association in the world.  It has served as the voice of business at the UN since 1945, frequently taking part in UN and related multilateral deliberations in the economic, social and environmental arenas.

Ms. Kantrow’s career has included posts within the United Nations and senior positions at nonprofit, governmental and intergovernmental organizations closely associated with UN activities.  Most recently, she served as executive director of the International League for Human Rights, one of the oldest human rights organizations in the world.  Prior to that, as executive vice president and chief operating officer with the UN Association of the USA (UNA-USA), she supervised a major expansion of programs at the Business Council to the United Nations.

The new ICC representative has also served as senior advisor to the United Nations Population Fund and as director of operations at the Population Council.  She worked for fourteen years as economic affairs officer in the UN Department of Economic and Social Development, following service as a senior economist with the U.S. Agency for International Development and as a population affairs officer with the UN.  Ms. Kantrow holds doctoral and master’s degrees in demography and economics from the University of Pennsylvania, and a bachelor’s degree from the University of Michigan.

Ms. Kantrow said she wished to utilize her background in economic development to focus business activity in the UN on promoting international trade and sustainable development, and in ensuring business can contribute to the success of joint initiatives like the UN Global Compact.

“The private sector is a critical partner in solving intractable problems and in helping countries develop,” she stated.  “This is a very exciting time to be helping lend the business community’s experience and know-how to the important work of the United Nations.”

Peter M. Robinson, president of USCIB, welcomed Ms. Kantrow and praised her predecessor.  “A lot of the credit for the UN’s more positive attitude toward business in recent years can go to Bill Stibravy,” he said.  “We in ICC’s American national committee have come to rely on the presence of ICC’s permanent representative, and I am sure Louise will provide able representation for global business at this critical time.”

USCIB promotes an open system of global commerce in which business can flourish and contribute to economic growth, human welfare and protection of the environment.  Its membership includes some 300 U.S. companies, professional service firms and associations whose combined annual revenues exceed $3 trillion.  As American affiliate of the leading international business and employers organizations, including ICC, USCIB provides business views to policy makers and regulatory authorities worldwide and works to facilitate international trade.

Contacts:

Jonathan Huneke, USCIB

+1 212 703-5043 or jhuneke@uscib.org

Mary Kelly, ICC

+33 1 4953 2987 or mary.Kelly@iccwbo.org

Ms. Kantrow’s bio

ICC Booklet: Working With the United Nations

ICC website

More on USCIB’s Global Network

Head of Leading Industry Group Applauds President’s Statement on Open Economies

Published on May 10, 2007
USCIB Chairman William G. Parrett speaking at the G-8 Business Summit in Berlin (Photo: BDI).
USCIB Chairman William G. Parrett speaking at the G-8 Business Summit in Berlin (Photo: BDI).

New York, May 10, 2007 – The chairman of the United States Council for International Business, William G. Parrett, applauded President Bush’s reaffirmation today of an open-door policy toward foreign investment in the United States and his encouragement that other nations follow this approach.

President Bush today issued a ringing endorsement of open markets worldwide, urging other nations “to join us in supporting an open investment policy and protecting international investments.”

Mr. Parrett, chief executive officer of Deloitte, welcomed the administration’s statement, calling it an important signal to markets and U.S. trading partners. “This is the first time in some 15 years that the U.S. has made such a high-level reaffirmation of the importance of open markets,” he said.  “Business sees U.S. government leadership as critical to preserving open markets, and I applaud the President’s commitment announced today.”

At last month’s first-ever G-8 business summit in Berlin, Mr. Parrett joined the heads of business federations from the other G-8 nations in appealing to governments to avoid recourse to investment protectionism.

“Governments need to take action at the highest level to avoid investment protectionism if we want to encourage the free flow and benefits of international investment,” Mr. Parrett said at the April business summit.  “They need to affirm, in word and practice, their commitment to open, cross-border investment.”

The business community has seen worrisome signs that the pendulum is swinging away from open markets in many countries.  Mr. Parrett said, “U.S. business recognized that the world had changed dramatically since 9/11 and that governments must pay more attention to national security issues, but a legitimate concern for national security needs to be considered alongside the benefits of allowing foreign investment.”

The United States Council for International Business promotes an open system of global commerce in which business can flourish and contribute to economic growth, human welfare and protection of the environment.  Its membership includes more than 300 leading U.S. companies, professional services firms and associations whose combined annual revenues exceed $3.5 trillion.  As the American affiliate of several leading global business groups, USCIB provides business views to policy makers and regulatory authorities worldwide, and works to facilitate international trade.  More information is available at www.uscib.org.

Contacts:
Jonathan Huneke, VP Communications, USCIB
Tel: +1 212 703 5043 or +1 917 420 0039 (mobile)
E-mail: jhuneke@uscib.org

Madonna Jarrett, Director, DTT Public Relations and CEO Communications
Tel: +1 212 492 3738 or +1 646 388 2335 (mobile)
Email: mjarrett@deloitte.com

President Bush’s statement on open economies (White House website)

G-8 Business Declaration: Joint Statement of the G-8 Business Organizations (PDF file, 1.8 MB)

More on USCIB’s Trade and Investment Committee

Deloitte website

US Executives to Engage Top International Tax Officials at OECD Conference in Washington

Published on May 10, 2007

3695_image002Washington, D.C., May 10, 2007 – U.S. executives and tax counsel will have unparalleled access to key tax officials from the Organization for Economic Cooperation and Development, as well as United States and other OECD member nations, at a major conference, “New OECD International Tax Initiatives: Looking Ahead,” June 4 and 5 at the Ronald Reagan Building and International Trade Center in Washington, D.C.

The conference, organized by the OECD, the United States Council for International Business (USCIB), and the Business and Industry Advisory Committee (BIAC) to the OECD, is the third in a series of annual events spotlighting the increasingly important work of the OECD in the area of international taxation.  It is produced in association with the International Fiscal Association-USA Branch, the International Tax Policy Forum, the National Foreign Trade Council, the Organization for International Investment, the Tax Council Policy Institute and the Tax Foundation.

“This conference provides an excellent opportunity to learn more about the important tax policy work being done through the OECD, and for U.S. business to further engage in this process,” said Lynda K. Walker, USCIB’s vice president and international tax counsel.  “It is evidence of the significance of the projects being undertaken by the OECD that such high-level officials are planning to join us for this important event.”

The United States, as a founding member of the OECD, has played an active role in developing the organization’s tax program.  The OECD presently consists of 30 advanced industrialized nations, although in the tax area Argentina, Chile, China, India, Russia and South Africa play an active role in the development of the organization’s work.  It facilitates cooperation through the development of standards for international tax policies affecting multinational business and other taxpayers.

The June conference will feature an impressive line-up of tax policy experts from the U.S. Treasury/Internal Revenue Service, the OECD’s Center for Tax Policy and Administration, and private industry.   Eric Solomon, assistant secretary of the Treasury for tax policy, will be a keynote speaker.  Ambassador Constance A. Morella, the U.S. representative to the OECD, will open the conference, along with OECD Deputy Secretary General Thelma Askey.

The OECD seeks to promote growth through the coordination of economic and regulatory policies between its member nations, which are all democratic market economies.  BIAC is composed of major business federations from the 30 OECD countries, and provides policy guidance to OECD members and its Paris-based secretariat.  USCIB is BIAC’s representative in the United States and regularly fields American industry experts for BIAC and OECD activities.

Ms. Walker noted that the top OECD tax officials have been involved in the planning of the program.  Among those participating from the OECD are Jeffrey Owens, the director of the Center for Tax Policy and Administration, Mary Bennett, head of its division on tax treaties, transfer pricing and financial transactions, Caroline Silberztein, head of its transfer pricing unit, and Jacques Sasseville, head of its tax treaty unit.

Panels at the conference will address:

  • Attribution of Profits to Permanent Establishments
  • Achieving Greater Consensus on the Application of Transfer Pricing Guidelines
  • Issues Arising from Business Restructurings
  • International Tax Administration:  Co-operation and Information Exchange
  • Other Tax Treaty Issues, including: A Re-examination of the Nondiscrimination Principle and Tax Treaty Application to Collective Investment Vehicles
  • Current OECD Work on Cross-Border Services
  • OECD’s Dispute Resolution Report

USCIB promotes an open system of global commerce in which business can flourish and contribute to economic growth, human welfare and protection of the environment.  Its membership includes some 300 U.S. companies, professional service firms and associations, whose combined annual revenues exceed $3 trillion.  As American affiliate of the leading international business and employers organizations, including BIAC, USCIB provides business views to policy makers and regulatory authorities worldwide and works to facilitate international trade.

Contact:

Jonathan Huneke, VP communications, USCIB

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

Conference agenda, registration form and other information

More on USCIB’s Taxation Committee

OECD website

World Trade Week NYC Spotlights Small Business Success in the Global Marketplace

Published on April 30, 2007
The hustle and style at Grand Central Terminal epitomizes the spirit of New York’s smaller traders.
The hustle and style at Grand Central Terminal epitomizes the spirit of New York’s smaller traders.

New York, N.Y., April 30, 2007 – This year’s World Trade Week celebration in New York City, which takes place May 21-25, will spotlight small and medium-sized enterprises (SMEs) that have built their businesses by accessing global markets and made the world their oyster.

In the public mind, international trade has become synonymous with big business and big money, seemingly far removed from the needs and concerns of smaller entrepreneurs.  Yet recent statistics from the U.S. government tell a different story.  For example, SMEs make up over 90 percent of all New York State exporters, and the value of the goods they sell abroad accounts for fully half of the state’s merchandise exports – the third-highest percentage of any state in the nation.

“The question is no longer whether SMEs can go global,” said Peter M. Robinson, president of the United States Council for International Business (USCIB), a lead partner organizations for World Trade Week NYC.  “The real questions are when and where.”

Patrick J. Foye, chairman of the Empire State Development Corp./Downstate, and Roy W. Hoffman, managing director for international client service with RSM McGladrey, will serve as co-chairs of World Trade Week NYC 2007, part of a nationwide celebration of international trade, to be observed by business and trade-related organizations across the New York metropolitan area.

Kicking off the week’s events is the annual International Trade Awards Breakfast on Monday, May 21, at the Weissman Center for International Business, Baruch College/CUNY.  World Trade Week NYC 2007 organizers are proud to announce the following award recipients:

  • S.S. Sampliner & Co., Inc. will receive the Export Achievement Award
  • Max Brenner Chocolate will receive the NYC International Achievement Award
  • The New York State Small Business Development Center at LaGuardia Community College/CUNY will receive the Export Appreciation Award
  • Stewart B. Hauser, Chairman, NY/NJ Foreign Freight Forwarders & Brokers Association, Inc., will receive the Global Trade Award

World Trade Week NYC 2007 is hosted by the New York District Export Council and supported by Presenting Sponsor, RSM McGladrey.  The United States Postal Service, Empire State Development, HSBC and Roanoke Trade are also sponsors.  Many nonprofit economic development organizations are involved, including several internationally based chambers and trade associations.  Complete, up-to-the-minute information on World Trade Week NYC 2007 events and supporting organizations is available at www.worldtradeweeknyc.org.

The United States Council for International Business promotes an open system of global commerce in which business can flourish and contribute to economic growth, human welfare and protection of the environment.  Its membership includes more than 300 leading U.S. companies, professional services firms and associations whose combined annual revenues exceed $3.5 trillion.  As the exclusive American affiliate of three key global business groups – 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.

Contact:

Jonathan Huneke, USCIB

(212) 703-5043

jhuneke@uscib.org

World Trade Week NYC website

More on USCIB’s Trade and Investment Committee

More on USCIB’s Business Services to Expedite Trade

Other Upcoming USCIB Events

Striking the Balance Between Open Investment, Mergers and Acquisitions, and National Security

Published on April 25, 2007

Remarks Delivered to the Federation of German Industries (BDI) G8 Business Summit

Berlin, April 25, 2007

William G. Parrett

Chairman, United States Council for International Business and

CEO, Deloitte Touche Tohmatsu

  1. Introduction

Thank you Herr Gloss.

It is a pleasure to be here and participate in this timely and important event.

I wish to congratulate Chancellor Merkel for the vision and foresight to seek the views of the private sector on three critical issues being considered by G-8 governments: investment, intellectual property rights, and climate change.

I have been asked to speak on striking the right balance between keeping markets open for foreign investment/mergers and government measures to protect the national security.

Let me state the U.S. business position at the outset:  Governments need to re-gain self restraint in the use of national security as a reason to interfere with foreign investment and mergers and acquisitions!

  1. Why Liberal Investment Regimes Are Important

As the Chairman of the United States Council for International Business, an organization representing some 300 multinational companies who trade and invest globally, the benefits of open investment regimes are readily apparent.

Our members know that open investment regimes by governments enables them to compete in global markets on the basis of their best offerings—their product design, development, production, sales and service.

And over the years, governments have recognized and welcomed the contribution foreign investment brings to their economies in terms of increased employment, output, productivity, technology and managerial skills and the like.  Increasingly from the mid 1990’s and into the mid 2000s, governments tore down their barriers to foreign investment.

The data on foreign investment flows reflect this attitude of governments.  In 2005, the value of global cross border investment flows throughout the world exceeded ten trillion dollars, nearly triple the amount of 1995.

III.  The Beginnings of Change

In the early years of this century, the drive to continue liberalization of barriers to foreign investment began to change in the United States and throughout the world.

September 11, and subsequent bombings in Spain, UK, India and Bali led to heightened security concerns in the U.S. and eventually these concerns found their way into the world of international investment.    

The failed attempt by a Chinese firm, CNOOC, to acquire a medium size U.S. oil company Unocal, raised questions in Congress and the public about foreign investors acquiring vital assets in the U.S.  Subsequently, the Dubai Ports transaction, which cleared the U.S. CFIUS national security review process, was unwound in the face of intense Congressional and public pressure.

Examples of government interference or potential interference with foreign takeovers are not limited to the U.S.:

  • Legislation has been proposed in Canada to amend the Investment Canada Act to provide clearer authority to review and prohibit if necessary foreign investments that could threaten the national security.
  • Japan is enhancing its pre-notification system regarding foreign takeovers of Japanese firms.
  • China has issued new rules that allow the government to vet foreign investments that involve a major industry, the impact of the investment on its economic security or the transfer of famous Chinese trademarks.
  • India is considering a new law to intensify its rules to restrict foreign investment in sensitive areas.
  • Russia is adopting legislation that would restrict foreign investment in natural resources and selected other industries and the ability of foreign enterprises to develop natural resource industries.

Beyond these pending legal changes there are a number of other disturbing developments:

  • The investment community has witnessed public declarations by political officials that certain industries were “off limits”
  • Market observers readily noted Pepsico’s failed bid for Danone Yougurt and Arcelor’s bid for Mittal Steel to foreign investors.
  • Italy had informed a foreign bidder for its toll road system that their investment “would not be welcomed” and the potential investor withdrew. (Since then Italy’s new Central Banker stated that Italy will not interfere with foreign takeovers in the financial sector).
  • French Presidential candidate Sarkhozy stated in a campaign speech that if elected President, French owned companies would be off limits to foreign buyers.

The investment community also witnessed seizing of property or forced sale of companies by Bolivia and Venezuela and Russia’s pressure on a large Western oil company (Shell) to sell a major stake in its Sakhalin Island oil project to a state-owned firm, Gazprom.

The point here is not to cast stones at the practices of others, but to demonstrate that in my view the cumulative effect of these actions has created a new policy challenge for global business and governments—to combat investment protectionism

  1. The Task Ahead

Business recognizes governments’ responsibility to protect the national security whether the threat comes in the form of military action or is imbedded in some aspects of a commercial transaction.

The difficulty for business is that governments seem to be losing self-restraint as the concept of national security has become extremely elastic when applied to foreign takeovers.  Moreover, in addition to national security constraints, governments are using their political influence to protect “strategic industries” and establish “national champions” from foreign takeovers.

Contributing to these developments, informal barriers such as public declarations or statements from high level officials that a bid for one of their companies “would not be welcomed,” and/or tacit arrangements with leading firms/financiers in the private sector supported or condoned by the authorities also have a deleterious effect on foreign investment.

Structural and cultural barriers may also have an adverse impact.  In many countries shares are not listed, some countries maintain a golden share, which can be used to block a takeover, and there may be cross holdings of shares that deter takeovers.  In some countries it just is not possible to undertake a “hostile” takeover.

  1. Recommendations

Transparency:

Last fall, the OECD Secretariat compiled an inventory of member practices to restrict investment on grounds of national security. Transparency of such measures can be an extremely helpful tool to hold governments accountable to their commitments.

Recommendation:

The OECD should update this inventory on an annual basis, and expand its scope to include the use of informal barriers, as these types of barriers can be quite powerful in deterring foreign takeovers.

Protecting the National Security:

Business recognizes that the world has changed dramatically since 9/11 and that governments must pay more attention to national security issues. But a legitimate concern for national security should not serve as an excuse to impede foreign investment. Blocking a foreign takeover for reasons of national security should be an extremely rare occurrence and should be taken as a measure of last resort, only when all other rules or tools that are designed to protect the national security are not adequate or effective. Further, blocking a foreign investment should not be used to obtain a commercial advantage for domestic firms.

Recommendation:

Governments need to take action at the highest level to avoid investment protectionism and to affirm in word and practice, their commitment to open, cross border investment.

Further, the G-8 should encourage the OECD to reach out to the Business and Industry Advisory Committee to the OECD to provide their input on the ways in which informal barriers can impede foreign investment and engage in a dialogue with OECD governments on ways in which these barriers can be reduced.

Taken together, these actions can make a difference and will serve to encourage the free flow and benefits of foreign investment.

Thank you for your attention!

At G8 Business Summit, USCIB Chairman Urges Governments to Avoid Investment Protectionism

Published on April 24, 2007

Joint statement by business federation heads also presses for Doha Round’s completion

USCIB Chairman William G. Parrett (second from left) joined other top business chiefs at the first-ever G-8 Business Summit in Berlin (Photo: BDI).
USCIB Chairman William G. Parrett (second from left) joined other top business chiefs at the first-ever G-8 Business Summit in Berlin (Photo: BDI).

Berlin, April 25, 2007 – At today’s first-ever G-8 Business Summit, the chairman of the United States Council for International Business (USCIB), William G. Parrett, also CEO of Deloitte, urged the leaders of the Group of Eight nations to maintain their commitment to the open flow of international investment across borders, realizing countries still need to address local issues such as national security.

“Governments need to take action at the highest level to avoid investment protectionism if we want to encourage the free flow and benefits of international investment,” said Mr. Parrett, who represented the United States in the G-8 business preparatory meeting, which was organized by the Federation of German Industries (BDI).  “They need to affirm, in word and practice, their commitment to open, cross-border investment.”

The Berlin summit brought together the heads of top business federations from Germany, which hosts this year’s G-8 leaders summit in Heiligendamm this June, and the other G-8 nations along with the trans-European business federation Business Europe.  The business leaders signed a joint G-8 Business Declaration that will be presented to the G-8 government leaders, urging completion of the WTO’s Doha Round “as a matter of urgency and top priority,” and proposing ways to address related trade and investment issues, innovation challenges such as intellectual property rights, and climate protection.  They were scheduled to meet with German Chancellor Angela Merkel later today.

Investment protectionism has been on the rise both in the G-8 nations and elsewhere, and curtailing such measures was among the top priorities spelled out by the business leaders in a joint statement.  Mr. Parrett pointed to a number of recent measures that he said needlessly interfered with foreign mergers, acquisitions and greenfield investment under the guise of security concerns.

Mr. Parrett said business recognized that the world had changed dramatically since 9/11, and that governments must pay more attention to national security issues.  “But a legitimate concern for national security needs to be balanced against the benefits of allowing foreign investment,” he said.  “Blocking a foreign takeover for reasons of national security should be an extremely rare occurrence, and should be taken as a measure of last resort, only when all other rules or tools that are designed to protect national security are not adequate or effective.  Further, blocking international investment should not be used as a means to give unreasonable commercial advantage for domestic businesses.”

Mr. Parrett called upon the G-8 governments to support annual updates by the OECD of measures to restrict investment on grounds of national security, and the extension of this study to the issue of informal barriers to investment.  He urged that the business community be fully engaged in helping identify such informal barriers.

The business leaders focused on a number of other issues they said required attention by their governments at the Heiligendamm summit.  These included completion of the WTO’s Doha Round, fostering intellectual property rights, enhancing efficient capital markets, strengthening environmentally friendly technologies and facilitating private-sector participation in African development.

Peter M. Robinson, president of USCIB, who was also in Berlin, drew attention to the need for immediate action by the G-8 governments to protect intellectual property rights and stamp out product piracy.  “The issue has moved far beyond movies and music,” he said.  “Nowadays no industry, and no country, is immune from counterfeiting and piracy.  Government action is urgently needed at the highest levels to stamp out this scourge.”

The United States Council for International Business promotes an open system of global commerce in which business can flourish and contribute to economic growth, human welfare and protection of the environment.  Its membership includes more than 300 leading U.S. companies, professional services firms and associations whose combined annual revenues exceed $3.5 trillion.  As the American affiliate of several leading global business groups, USCIB provides business views to policy makers and regulatory authorities worldwide, and works to facilitate international trade.  More information is available at www.uscib.org.

Contacts:
Jonathan Huneke, VP Communications, USCIB
Tel: +1 212 703 5043 or +1 917 420 0039 (mobile)
E-mail: jhuneke@uscib.org

Madonna Jarrett, Director, DTT Public Relations and CEO Communications
Tel: +1 212 492 3738 or +1 646 388 2335 (mobile)
Email: mjarrett@deloitte.com

G-8 Business Declaration: Joint Statement of the G-8 Business Organizations (PDF file, 1.8 MB)

More on USCIB’s Trade and Investment Committee

More on USCIB’s Intellectual Property Committee

G-8 2007 Summit website

Federation of German Industries (BDI) website

Deloitte website

 

William D Eberle Former Trade Representative and USCIB President Is Mourned

Published on April 7, 2007
William D. Eberle
William D. Eberle

New York, N.Y., April 7, 2008– Representatives of the United States Council for International Business (USCIB) expressed sadness at news of the death of William D. Eberle, the former U.S. trade representative who served as president of the pro-trade group after retiring from government service and remained actively engaged in the organization since then.

Mr. Eberle passed away on April 3 at his home in Concord, Massachusetts at age 84.

“Bill Eberle was an outstanding statesman in every sense of the word,” said USCIB President Peter M. Robinson. “He was steadfast in his commitment to open markets and free trade, and his personal dedication to organizations like ours that he chose to work with was nothing short of remarkable. He will be sorely missed.

Mr. Eberle was born in Boise, Idaho. He graduated from Boise High School, Stanford University and Harvard Law School. During World War II, he served as an officer in the U.S. Navy. After the war, he returned to Boise to practice law, and he was later elected to two terms in the Idaho House of Representatives, serving as speaker of the House during his second term.

In the early 1960s, Mr. Eberle co-founded the pulp and paper company Boise Cascade. He went on to serve as CEO of the manufacturing firm American Standard. President Nixon appointed him as special trade representative for the United States in 1971, a position that carries the title of ambassador. He was the first Idahoan to hold that rank.

Leaving government in 1975, Mr. Eberle initially served as executive director of the American Automobile Dealers Association. From 1977 to 1978, he served as president of USCIB, then known as the United States Council of the International Chamber of Commerce (ICC). He was very active in the work of ICC, the world business organization, chairing its international trade commission, and serving on its executive board and finance committee. For many years, Mr. Eberle chaired USCIB’s policy coordinating committee. At his death he was a vice chairman and trustee of the organization.

Mr. Eberle is survived by his wife, the former Jean Quick, as well as four children and six grandchildren. A memorial service is planned for April 19 in Boise. Donations may be made to the Idaho Community Foundation.

Founded in 1945, USCIB promotes an open system of global commerce in which business can flourish and contribute to economic growth, human welfare and protection of the environment. Its membership encompasses over 300 leading U.S. companies, professional services firms and associations whose combined annual revenues exceed $3.5 trillion. As American affiliate of several leading global business groups, USCIB provides business views to policy makers and regulatory authorities worldwide and works to facilitate international trade.

Contact:

Jonathan Huneke, VP Communications, USCIB

+1 212-703-5043 (office), +1 917-420-0039 (mobile) or jhuneke@uscib.org

 

More on USCIB’s Trade and Investment Committee