BIAC Archives

B20 Conference: USCIB’s Global Network Tackles Employment Challenges

Published on September 8, 2015

Ankara_TurkeyThe International Organization of Employers (IOE), the Business and Industry Advisory Committee (BIAC) to the OECD, and USCIB member Deloitte have joined forces to take stock of labor market policies impacting employment opportunities for young people across the G20 and beyond.

The IOE hosted an event in Ankara, Turkey on September 2 to highlight joint work with BIAC and Deloitte on cataloging and assessing youth employment policies. Turkey currently holds the presidency of the G20. The B20 Conference is being held in Ankara, Turkey from September 3 to 5, 2015. Ronnie Goldberg, USCIB’s senior counsel, attended the conference.

Initial findings of the joint report identify four main challenges to hiring and retaining younger workers.  Nearly 30 IOE member federations contributed their diverse country experiences of youth unemployment-related issues, which include lack of appropriate training in job readiness and skills; a shortage of job opportunities and entrepreneurial companies; high costs of hiring, coupled with diminishing subsidies for employers and the expectations of young people themselves.

While feedback suggests that different policies need to be developed according to national circumstances, employer organizations called for holistic and coherent policy approaches within and between countries.

“Understanding the drivers behind policy successes around the world and decisively acting on that information in future policy making is the best way to inject more dynamism into the labor market, strengthen links between education and employment, and remove barriers to hiring young people,” said IOE President Daniel Funes de Rioja, “The IOE and its partners, thanks to the expertise and experiences within our global network of 155 members around the world, are well placed to input future policy development in the G20 and beyond.”

Also at the B20 Conference, Funes presented five key recommendations on September 4 to the Joint Consultation of G20 Labor and Finance Ministers. The consultation provided a rare opportunity to discuss employment issues with fiscal policy makers.

Funes presented five key measures for creating jobs by stimulating private sector-led growth:

  1. pursue sound macro-economic policies such as price stability and fiscal prudence
  2. develop infrastructure strategies at the country level linked to G20 growth aspirations
  3. encourage open and competitive markets, and resistance to protectionism in all its forms
  4. put in place labor market policies that promote flexible work arrangements
  5. support small businesses by improving access to financing for small- and medium-sized businesses

Rioja pointed out the dearth of skills in the labor market. If education and training were better matched with the needs of employers, it would allow existing job vacancies to be filled. He will also highlight the general lack of jobs in many countries and draw attention to the barriers to business in creating employment, such as unfavorable regulatory frameworks.

 

USCIB’s Klein to Speak in Canada as OECD Plans Release of BEPS Deliverables

Published on August 10, 2015
Carol Doran Klein (USCIB) at the 2015 OECD International Tax Conference.
Carol Doran Klein (USCIB) at the 2015 OECD International Tax Conference.

As governments and the business community get ready for the release of the OECD’s proposed national actions in its controversial Base Erosion and Profit-Shifting (BEPS) initiative, USCIB Vice President and International Tax Counsel Carol Doran Klein has agreed to be a keynote speaker at a October 15-16 conference in Toronto on global transfer pricing and related tax issues, including BEPS.

The conference is being organized by Bloomberg BNA and Baker & McKenzie. Klein is expected to provide a business insider’s assessment of the BEPS deliverables.

The OECD has announced that it plans to unveil the proposed BEPS deliverables at this October’s G20 finance ministers meeting in Lima, Peru. Last month, USCIB and two other associations sent a letter to letter to U.S. Treasury Secretary Jacob Lew citing concerns with BEPS and noting the threat of double taxation to global trade and investment. The BEPS project was a primary focus of USCIB’s annual tax conference with the OECD in June.

BIAC, the Business and Industry Advisory Committee to the OECD, said its member organizations fully appreciated that this is only the end of the “first half,” of the BEPS project, with national implementation constituting the “second half.”

“It is crucial that recommendations not only protect countries’ tax bases, and the ability of governments to raise revenue, but also protect and encourage cross border trade and investment by providing a predictable fiscal environment, that will help create jobs and growth,” BIAC said.

Progress in Digital Economy Policy in Run Up to OECD 2016 Ministerial

Published on August 10, 2015

Computers_loresAt the end of June, the OECD Committee on Digital Economy Policy (CDEP) discussed progress and updates on several initiatives of the committee and related working parties. A new landmark publication, the Digital Economy Outlook, was launched and CDEP and BIAC conferred on key themes and outputs for the 2016 Digital Economy Ministerial to take place in Cancún, Mexico, in July 2016. The participants had an opportunity to discuss the companion document to the revision of the OECD Recommendation of the Council on Digital Security Risk Management for Economic and Social Prosperity to be formally launched during the next CDEP meeting from November 30 to December 4, and presented during the 2016 Ministerial.

The CDEP Ministerial meeting will aim to promote policy dialogue on prominent issues and define the mandate for the committee’s future work. As the event approaches, BIAC members are participating in shaping the agenda, arranging events such as a corresponding BIAC Business Day and a “Hack-a-thon,” an event designed to engage with young programmers and app developers on creative solutions for the future of the digital economy.

USCIB’s Global Network Weighs In: B20 Employment Recommendations

Published on August 10, 2015

g20As the Turkish presidency moves to its final, decisive phase as this year’s G20 host country, the International Organization of Employers (IOE) and the Business and Industry Advisory Committee (BIAC) to the OECD have contributed extensively to B20 work on labor and employment.

On September 4-5, the G20 labor ministers will meet in Ankara, and on 15 and 16 November the G20 Leaders’ Summit will take place in Antalya. It is crucial the business recommendations are reflected in the outcome documents of these events. Ronnie Goldberg, USCIB’s senior counsel, will attend the labor ministerial in September.

The B20 Employment Task Force, co-chaired by IOE President Daniel Funes de Rioja, proposes three main recommendations:

    1. Advance a business-friendly environment to create employment opportunities
    2. Increase participation of youth and women in the labor force by making labor markets more dynamic and inclusive
    3. Develop and finance programs aimed at reducing skills mismatches in an era of rapid technological change and innovation

Read the complete B20 Employment Recommendations.

While USCIB’s global network has already engaged in extensive advocacy work at G20 level, the recommendations also need to be reinforced vis-à-vis national governments well ahead of the G20 Labor Ministerial and Leaders’ Summit. Business leaders are urged to contact their governments and advocate for the uptake of these recommendations

As part of the B20/L20 (trade unions) work stream, the IOE will also sign a joint statement entitled “Jobs, Growth and Decent Work” during the Ankara B20 Conference calling on G20 governments to:

  • Determinedly tackle youth unemployment
  • Pursue macro-economic policies that promote employment
  • Make a reality of the 2014 Brisbane target of reducing by 25% the gender gap in employment by 2025
  • Promote transition to formality and implement the Recommendation on informality adopted by the 2015 ILC

Read the full B20/L20 Statement.

The B20/L20 fully endorse the IOE/BIAC/TISK–ITUC/TUAC projects on promoting in national seminars the joint understanding of quality apprenticeships to foster implementation, and on strengthening occupational safety and health (OSH) through supporting better implementation of standards through capacity building of the social partners on prevention, the creation of modern OSH frameworks and of a best practice data base.

The B20/L20 argue that business and labor must play a key role in the shaping of economic and social policy, committing themselves to realizing a project on a joint understanding of the effects of technological change on employment and skills. A Roundtable is being organised by B20/L20 in Ankara on September 5 on this topic. Representatives of ILO, OECD, the Chinese G20 presidency and the social partners will make key contributions to this high-level event.

Remembering Bill Matteson, a Longtime USCIB Champion

Published on July 20, 2015
William B. Matteson
William B. Matteson

We are saddened to report the passing in May of William B. Matteson, a longtime member and supporter of USCIB who served as vice chairman from 1986 to 1999 and also served as chairman of BIAC, the Business and Industry Advisory Committee to the OECD.

A native of Westchester County, New York, Bill graduated from Harvard Law School and clerked for Justice Harold Burton in the United States Supreme Court before joining the Debevoise & Plimpton law firm in 1955, where he went on to become partner in 1961. He headed the Paris office of Debevoise from 1973 to 1976 and was presiding partner of the firm from 1988 to 1993.

“Bill was one of the leading corporate lawyers of his generation,” said USCIB President and CEO Peter M. Robinson. “He brought great intelligence to his work with USCIB. But more than anything, he was a great friend to the organization, someone who inspired good will and admiration by the power of his own example.”

Ronnie Goldberg, senior counsel with USCIB and a longtime head of policy and program, added: “Bill was a quiet presence. It was easy to underestimate him – until he spoke. Listening to Bill summarize a meeting or present an issue amounted to a master class in both policy and presentation. He was a generous host and a patient and wise counselor. I feel both fortunate and honored to have worked with him.”

Our sincere condolences go out to the Matteson family, including his wife of almost 65 years, Marilee, and to Bill’s former colleagues at Debevoise and throughout the USCIB and BIAC communities. Donations in his name may be made to the Sconset Trust, P.O. Box 821, Siasconset, MA 02564 for conservation efforts on Nantucket Island. A service is planned there later this summer.

Business Weighs in on UN Treaty Process on Business and Human Rights

Published on July 2, 2015
Photo credit: UN, Pierre Albouy
Photo credit: UN, Pierre Albouy

As the United Nations Human Rights Council begins work on a legally binding treaty aimed at regulating transnational enterprises with respect to human rights, USCIB’s global network published a position paper representing the views of international business on the UN treaty process.

Jointly written by the International Chamber of Commerce, the International Organization of Employers, the Business and Industry Advisory Committee to the OECD and the World Business Council for Sustainable Development, the paper argues, among other things, that the UN treaty process must not undermine the ongoing implementation of the UN Guiding Principles on Business and Human Rights, that the process must be inclusive of all stakeholders and that the treaty should address all companies, not just multinationals.

As one of the only trade associations with membership in three of the four organizations that drafted the position paper, USCIB was instrumental in working with the IOE to draft the document, and was decisive in the ICC and BIAC decisions to support the final version.

The global business community has expressed concern that the proposed UN treaty process may hinder the implementation of the UN’s Guiding Principles, which were developed over the eight year mandate of former UN Special Representative on Business and Human Rights John Ruggie, and have very quickly become the authoritative international framework on the issue. The Guiding Principles’ “protect, respect, remedy” established a framework that reaffirmed states’ obligations under international law to protect human rights, while businesses, regardless of size or ownership structure, are responsible for respecting these rights throughout their operations. The principles also establish that both states and corporations share the task of ensuring access to effective remedies for human rights victims.

“We’ve seen tremendous uptake of the UN Guiding Principles in a very short period of time, but not enough implementation, particularly on the National Action Plans that states have been tasked with creating.  The treaty process will prove most effective if it reinforces the ’protect-respect-remedy’ framework with further international legal weight, creating more pressure on states take to their duty to protect more seriously, which includes supporting and encouraging business enterprises’ efforts to respect human rights.  ,” said USCIB Vice President Ariel Meyerstein. “The treaty also provides an opportunity to strengthen the rule of law and access to remedy through national courts where harms occur. That will ultimately provide redress for more victims more efficiently than other proposed means of ensuring access to remedy, which in effect may only offer hope to victims of the most heinous violations. .”

Last year, the UN Human Rights Council voted in favor of a proposal sponsored by Ecuador and South Africa to negotiate a binding treaty on business and human rights. On July 6, the Intergovernmental Working Group (IWG) on Transnational Corporations and Human Rights, which will develop the treaty, will hold the first of several annual meetings. The position of the United States – which voted against the treaty last year – remains not to participate in the IWG. The IOE will participate in the IWG and will also host a side event to  provide business input.

Other positions by business on the UN Treaty Process include:

  • The treaty should contribute to the effective implementation of UN Guiding Principles by requiring states to draft National Action Plans.
  • The treaty’s scope of must be limited to business and human rights, not other issues such as climate change.
  • The treaty must not shift the responsibility from the entity perpetrating a human rights violation to the enterprise linked in some way to that entity, a principle well-established by both the UN Guiding Principles and OECD Guidelines for Multinational Enterprises.
  • To strengthen national implementation, the treaty should require governments to report back to the UN supervisory machinery about measures taken.

Read the position paper: “UN Treaty Process on Business and Human Rights: Initial Observations by the International Business Community on a Way Forward.”

 

China-OECD Cooperation Crucial for International Business

Published on July 2, 2015

The seventh joint meeting of the U.S.-China Strategic and Economic Dialogue wrapped up on June 24, concluding the highest-level bilateral forum between the two countries. The dialogue is essential for fostering a constructive relationship between the two nations, as well as for paving the way for Chinese economic reform. These bilateral economic talks are complemented by multilateral initiatives, including engagement with the Organization for Economic Cooperation and Development (OECD).

The OECD and China are expected to agree on a detailed program of work for 2015-16. This is particularly timely as China will soon unveil priorities for its 2016 G20 Presidency, and will also outline objectives early next year for its 13th Five Year Plan. China is experiencing an enduring investment downturn and deeper regional divergences.

A return to strong and sustainable growth will necessitate a firm commitment to policy reforms and their implementation. The Business and Industry Advisory Committee (BIAC) to the OECD China Task Force regularly highlights the importance of strengthening rule of law and creating a level playing field for all companies in China, whether foreign or domestic, private or state-owned.

“China and the OECD need each other now more than ever,” said Joerg Wuttke, chair of the BIAC China Task Force, commenting on the visit of Chinese Premier Li Keqiang to the OECD Headquarters in Paris. “As Chinese companies ramp-up overseas investment, and as OECD-based companies continue to sow investments in China, a new and enhanced program for China-OECD cooperation should benefit both parties,” he added.

Shaun_CNBCThe U.S. business community supports China’s reform agenda. On June 25, USCIB Vice President Shaun Donnelly talked about the U.S. business community’s perspective on the U.S.-China Strategic and Economic Dialogue in an interview with CNBC. He noted that the prospects are good for a bilateral investment treaty between the U.S. and China, and he discussed cyber security and government procurement.

USCIB has also been engaged with the OECD’s comments on China’s 13th Five Year Plan, contributing to BIAC’s submission on the plan last year. USCIB’s China Committee will meed to discuss OECD-China relations in late July.

The OECD, a world-leader in policy tools, analysis, and advice on economic governance, is well placed to advise China on its reform agenda. OECD instruments, such as the Guidelines for Multinational Enterprises and the Anti-Bribery Convention, will be especially useful for Chinese companies investing overseas that face both the complexities and expectations of global markets.

“Sustaining China’s growth is in the interest of all parties,” commented Wuttke. “Recognizing the enormous potential for reform, the BIAC China Task Force looks forward to contributing to this next phase of China-OECD cooperation.”

Investment Focus at the 2015 OECD Ministerial Council Meeting

Published on July 1, 2015
Charles R. Johnston, chair of USCIB's Trade and Investment Committee and Vice Chair of BIAC, addresses OECD Ministers on investment policies.
Charles R. Johnston, chair of USCIB’s Trade and Investment Committee and vice chair of BIAC, addresses OECD Ministers on investment policies.

The business community welcomed the strong focus on investment of the June 2015 OECD Ministerial Council Meeting, which took place under the theme of unlocking investment for sustainable growth and jobs. Ministers hailed the updated OECD Policy Framework for Investment, which is the most comprehensive and systematic approach for improving investment conditions ever developed.

Ministers also discussed how the OECD could enhance an inter-governmental and multi-stakeholder dialogue on investment treaties and on the global investment environment through its Freedom of Investment Roundtable, which brings together over 50 governments to exchange information and experiences on investment policies. Ministers also called on the OECD to analyze how sustainability and responsible business conduct can be promoted through trade and investment.

Building on the outcome of the Ministerial Meeting, investment will remain high on the OECD agenda. The Business and Industry Advisory Committee (BIAC) to the OECD belives that the OECD can play an important role by providing fact-based analysis to inform policy discussions. BIAC and USCIB will remain actively involved going forward.

Business Prepares for OECD Health Ministerial on Next-Gen Health Reforms

Published on June 29, 2015
Helen Medina (USCIB)
Helen Medina (USCIB)

In the wake of the financial crisis, global health issues, such as the rising cost of medicines and the need for health reform, have risen to the top of the global agenda as policymakers struggle to insure the best quality healthcare at an affordable price. As the OECD gears up for its Health Ministerial in 2017, USCIB and the Business and Industry Advisory Committee (BIAC) to the OECD are providing industry input ahead of an expected high-level declaration that will guide governments’ future health priorities.

Helen Medina, USCIB’s vice president for product policy and innovation, attended BIAC and OECD Health Committee meetings in Paris this week to prepare formal comments for the OECD Workshop on High-Cost Medicines. She also attended a BIAC strategy session on June 22 to prepare for the 2017 OECD Health Ministerial, the theme of which is “The Next Generation of Health Reforms.” At the meeting attendees discussed their work on obesity and nutrition, to be presented at an upcoming meeting OECD Health Committee secretariat.

“The OECD’s work on healthcare issues often mirrors World Health Organization priorities,” Medina said. “Because there are limited opportunities for business to engage with the WHO, our engagement with the OECD is especially important as it allows industry to provide expertise and information into the policymaking process that otherwise would not be heard.”

Participants at the BIAC Health Committee meeting agreed that with healthcare issues at the forefront of the global agenda, it is important that the OECD’s work reflects a balanced and holistic approach to dealing with healthcare challenges as the organization gears up for the Health Ministerial in January 2017. The BIAC meeting produced alignment on industry messages on the various OECD projects which could impact industry sectors such as pharmaceuticals, alcohol, beverages, and food. In addition, a task force was created to prepare for the 2017 Health Ministerial.

OECD Workshop on High-Cost Medicines

To provide input for the upcoming 2017 Health Ministerial, the OECD Health Committee organized the “Workshop on High-Cost Medicines” on June 24 to encourage dialogue between governments, experts and the industry on access to effective medicines. Attendees talked about the need to maintain the financial sustainability of health systems while also steering innovation in the pharmaceutical industry. Given that OECD governments are increasingly challenged by the expanding costs of healthcare, the workshop explained how the pharmaceutical industry’s business models impact health sector spending. Industry experts discussed how governments can encourage the right innovation in pharmaceutical care to better respond to unmet medical needs.

Business delivered the following key messages to policymakers during the workshop:

  • Innovative medicines improve patients’ lives;
  • Assessing the value of medicines requires a holistic approach;
  • Innovation requires investment in health;
  • Innovation can deliver significant patient and societal value;
  • A “whole health system” approach is needed to maximize efficiencies;
  • Multi-sectoral partnerships can help address access and affordability.

 

BIAC and B20 Turkey Call for Strengthening the Financing of SMEs in Global Value Chains

Published on June 18, 2015

SMEs“For SMEs to benefit more fully from global value chains, urgent actions are needed to improve the coordination of financial regulations, strengthen access to financing and skills, and maximize the sharing of information through digital platforms,” said Bernhard Welschke, BIAC secretary general, commenting today on the release of a BIAC-B20 Turkey special publication.

Faced with the slowest post-crisis global investment recovery since the early 1970s, there is a pressing need to unlock growth, investment and jobs. However, small- and medium-sized enterprises (SMEs) – which account for the majority of employment and over half of value-added in OECD countries – have struggled to access the financing they require to participate in and across world markets as banks have deleveraged to meet new regulatory requirements.

Conscious of the financing challenge, BIAC and B20 Turkey have released a publication halfway through the Turkish G20 Presidency entitled “Business Access to Global Value Chains and Financing SMEs.” Bringing together chapters written by prominent thinkers in government, academia, finance, and business, the publication seeks to pave the way for actions to support SMEs, in contribution to the G20 ahead of the Leaders’ Summit in November 2015.

“This BIAC-B20 Turkey publication underlines that SMEs can be best supported if all relevant actors in markets – public and private alike – undertake coordinated actions that support businesses in global value chains,” commented Rifat Hisarcıklıoğlu, B20 Turkey Chair. “Connecting the various B20 and G20 activities is central to this effort.”

Considering the outcomes from a BIAC-B20 Turkey conference held on June 4, 2015 at the OECD Headquarters in Paris, the final chapter of the publication presents three overarching recommendations to G20 Leaders:

  1. Focus on coordination, consultation and impact assessment
  2. Raise SME access to finance and skills through an integrated approach
  3. Maximize the sharing of information through digital platforms

“We encourage G20 Sherpas to use this publication as a key point of reference in preparing the G20 Leaders’ Summit Communiqué,” added Hisarcıklıoğlu.

Read the report.