BIAC Archives

USCIB Competition Group Meets With FTC Commissioner, Discusses US Antitrust Developments

Published on December 1, 2021

The USCIB Competition Committee convened virtually November 12 for its semiannual meeting to discuss updates on antitrust at the national and international levels. Federal Trade Commissioner Noah Phillips served as featured speaker, providing personal insights on the shift in approach of the Biden Administration with respect to merger and acquisition activity, enforcement, rulemaking authority, treatment of labor markets, review of the horizontal and vertical merger guidelines, the July 2021 executive order on promoting competition and the new White House Competition Council.

Commissioner Phillips was appointed to the FTC in April 2018, having previously served as Chief Counsel to Senator John Cornyn (D-TX), on the Senate Judiciary Committee, and in various Washington D.C. and New York law firms. According to USCIB Director for Investment, Trade and China Alice Slayton Clark, Commissioner Phillips interactively engaged with the Committee by answering questions.

The Committee was also updated on the upcoming meetings and activities of the OECD and Business at OECD (BIAC) by Jane Antonio and John Taladay of Baker Botts. BIAC has prepared feedback on four OECD papers under discussion at recent OECD Competition Committee meetings: competition in books and e-books, environmental considerations in competition enforcement, ex-ante regulation and competition in digital markets, and economic analysis and evidence in abuse cases. The OECD meetings will be followed by the annual OECD Global Forum on Competition December 6-8.

USCIB Competition Committee Chair Dina Kallay (Ericsson) and Vice Chair Jennifer Patterson (Arnold & Porter), updated USCIB members on activities at the International Chamber of Commerce (ICC), where they serve as Vice Chairs on the ICC Competition Commission. They discussed the ICC’s Antitrust Compliance Toolkit and its Small and Mid-Size Enterprises (SME) version, as well as recent efforts to update the 2018 leniency manual. Both put a call out for interested USCIB members to become directly involved in the ICC Competition Commission and working groups.

Finally, Kallay informed members on a new draft framework paper issued by the French Competition Authority addressing compliance programs. She suggested USCIB weigh in, pressing for more credit for compliance programs in antitrust enforcement.

Julie Guichard and Matt Heim of Amazon also briefed members on a draft foreign subsidies regulatory initiative in the EU that would impact member companies operating in Europe. The proposal would require mandatory notification to the European Commission of all subsidies received from non-EU governments, information to be used in screening foreign direct investment, mergers and acquisitions, and joint ventures. The proposal was originally aimed at Chinese state-owned enterprises (SOEs), but they warned that the scope has been expanded and will now likely impact western multinationals doing business in Europe. USCIB will explore the issue with members to see if there is an interest in weighing in with the U.S. government on the proposal.

USCIB Advocates Strong Investment Policies at OECD Investment Committee Sessions

Published on December 1, 2021

USCIB and its international affiliate partners through Business at OECD (BIAC) remain on the front lines, defending solid, pro-investment policies at multilateral fora this fall.  

USCIB President and CEO Peter Robinson participated in the UN Committee on Trade and Development’s (UNCTAD) seventh World Investment Forum (WIF) as part of the Global Leader’s Investment Summit on October 19. “Now more than ever, it is important for international organizations like the UN and its member governments to provide the necessary welcoming environment for foreign direct investment in quality industry and infrastructure projects that help with pandemic relief and sustainable economic growth,” said Robinson. “Otherwise, the pandemic exacerbated investment gap will persist with the developing world most at risk.”   

Robinson also called for a strong and sustained role for industry, as a key stakeholder, in the discussion on investment at UNCTAD, the UN Commission on International Trade Law (UNCITRAL), the OECD or elsewhere. His remarks were echoed by other industry representatives and welcomed by some developing countries like Egypt. Opposing views were led by development economist Jeffrey Sachs and countries like Pakistan that would like to see radical “reform” of the investor state dispute settlement mechanism and reduction or elimination of protections for foreign investors.   

USCIB Senior Advisor Shaun Donnelly was a lead private sector speaker at a parallel “experts meeting” on International Investment Agreements in the same virtual UNCTAD World Investment Forum week. Donnelly forcefully defended investor protections, including a strong Investor-State Dispute settlement System (“ISDS”) as necessary protection against host government discriminatory or unfair treatment of foreign investors.  

There was discussion at WIF of establishing a multi-stakeholder “World Investment for Development Alliance” to facilitate greater collaboration between intergovernmental organizations, business entities, academic initiatives and civil society groups and to develop enabling frameworks to address international investment and sustainable development outcomes. USCIB will follow this proposal closely to ensure our active participation.

Donnelly and BIAC Investment Committee Chair Winand Quaedvlieg (Netherlands) led BIAC’s participation in the OECD Investment Committee’s semi-annual fall meetings. In a free-wheeling brainstorming session on investment treaties on October 28, Donnelly made a major intervention that a government’s right to regulate is not a right to discriminate or abuse investors, to be arbitrary or to be non-transparent.  He pointed out that “policy space” promoted by some governments and NGO participants should not translate into a “carte blanche” for governments to treat investors badly.  But unfortunately, according to Donnelly, some governments continue to do just that, underscoring the need for strong investor protections.   

Donnelly also joined Chairman Quaedvlieg on October 27 at a formal “stakeholder consultation” with the OECD Investment Committee leadership.  That session, where BIAC joins with labor union representatives from the Trade Union Advisory Council (TUAC),  as well as civil society group OECD Watch, was an opportunity for each of the stakeholders to lay down priorities and basic positions on future work in the OECD Investment Committee.   

Donnelly and USCIB Director for Investment, Trade and China Alice Slayton Clark, remained engaged this fall in informal consultations with U.S. government leaders to press the importance of investor state dispute settlement and positive Biden Administration messaging on the investment climate. The messages built on the above, encouraging conducive taxation frameworks, facilitation of administrative procedures, complementary public investments in modern infrastructure and the right mind- and skill sets, and sound investment protection and general predictability. 

Finally of note, USCIB continues to work with BIAC to share business views with respect to development of the OECD Foreign Direct Investment Qualities toolkit, designed to help policymakers create an enabling environment for attracting Foreign Direct Investment that safeguards key sustainability goals: productivity and innovation; employment, job quality and skills; gender equality; and, low-carbon transition. The toolkit is earmarked as a key deliverable for next fall’s OECD Ministerial Council Meeting. 

According to Clark, “All of these interventions provided a great opportunity for USCIB to remind government officials at the national and international level of the importance of foreign direct investment to economic development, recovery and sustainability, particularly in the face of a pandemic induced downturn.  As such, we must continue to maintain strong investor protections in international investment agreements.”   

USCIB Leads Business Policy Roundtable as Part of Brazil’s Accession to OECD 

Published on November 17, 2021

The Brazil OECD Business Policy Roundtable brought together U.S. and Brazilian government officials, the OECD and industry representatives in early November to discuss taxation reform and best practices as Brazil seeks to accede to the OECD.  According to USCIB Director for Investment, Trade and China Alice Slayton Clark, this is the latest of the several forums held by the Brazil Roundtable to explore changes to policy and practice – in line with OECD standards and best practices – that benefit businesses and employees while driving inclusive economic growth in Brazil.

Isaias Coelho, special advisor to Brazil’s Ministry of Economy, and Sandro de Vargas Serpa, undersecretary of Taxation and Litigation at the Federal Revenue of Brazil (RFB), detailed the regulations and legislative proposals under consideration that would simplify taxes at the state, federal and municipal levels, reforming consumption, income and international taxation practices.

“Brazil is currently undertaking significant regulatory reforms consistent with OECD guidelines including Recommendations of the Council on Regulatory Policy and Governance,” said Coelho. The ultimate hope, according to Mario Sergio Carraro Telles, executive manager of Economics for the Brazil Industry Association, is to adopt laws that simplify the tax system and reduce costs and uncertainty for companies.

Brazil has been working since 2018 in a dialogue with OECD on transfer pricing, which has evolved into a project aimed at aligning the existing transfer pricing regime with the OECD standard.  This joint project was made possible with the support of UK Prosperity Fund and other OECD countries who share their experience and best practices with Brazil. The United States has bolstered this process through technical assistance and training, asserted John Hughes, director of Advanced Pricing and Mutual Agreement Program of the U.S. Internal Revenue Service.

According to OECD Senior Advisor Tomas Balco, current policies in Brazil end up double taxing multinationals, deterring foreign investment and preventing Brazil from participating fully in global value chains. Luiz de Medeiros, Brazil country manager for IBM and a USCIB member, provided details from an industry perspective, expressing “great hope” that Brazil laws can be aligned with OECD norms.  Toward that end, Flávio Antônio Gonçalves Martins Araújo, head of the International Relations Office at RFB, reported that Brazil Administration currently is working on a legislative proposal to submit to Congress and start a political discussion in 2022 on a new transfer pricing law.

“It is clear from the speakers that the mood is right for reform in Brazil, and efforts are being made despite the economic challenges posed by the pandemic,” said Clark. “We hope these roundtables can inform and inspire in that regard, offering solutions for change that ease the economic burden for all.”

USCIB led the meeting, along with cohorts from the Brazil-U.S. Business Council of the U.S. Chamber of Commerce and Brazil’s National Industry Confederation (CNI). As the official U.S. representative to Business at OECD (BIAC), USCIB has been actively monitoring Brazil’s accession request to the OECD in order to advance business interest.

Additional roundtable discussions will be held throughout 2022, covering investment and trade, environment and sustainable development, as well as innovation and intellectual property.  Digital and regulatory issues were discussed earlier this year.

USCIB Acknowledges the G20 Finance Ministers Endorsement of the October Two-Pillar Global Tax Proposals

Published on October 14, 2021

Washington D.C., October 13, 2021—The United States Council for International Business (USCIB) notes the endorsement by the G-20 Finance Ministers today of the OECD/G20 Inclusive Framework landmark deal announced on October 8. The deal, agreed by 136 countries, including the US, establishes a new framework for international tax reform represented by two distinct proposals or pillars. The two-pillar solution will be delivered to the G20 Leaders’ Summit in Rome at the end of the month while the intensive work on the design and drafting of the numerous parts of the deal continues into 2022.

“The OECD has once again reached a significant milestone on schedule and was able to add a handful of key countries into the fold of the deal agreement since July,” said USCIB Vice President and International Tax Counsel Rick Minor.

The October deal terms include a long list of technical work that must still be completed in relatively short order according to the OECD timeline. USCIB Tax Committee company members are positioned to directly advise the OECD drafting teams through its membership in the Business at OECD Taxation Committee. According to Minor, “putting aside the ambitious timelines through 2022, our members will be focused on the development of the design and details for key aspects of each of the pillars. With respect to Pillar One, this includes, but is not limited to, dispute prevention and resolution mechanisms, the tax liability rules, revenue sourcing, the marketing and distribution safe harbor and so-called Amount B. We are also mindful of the fact that the drafting of the Pillar Two rules is on a parallel path with the numerous GILTI deliberations in Congress this fall which arguably puts pressure on that process if there is no coordination in review.” USCIB will remain engaged in the OECD rule design process through Business at OECD and directly, through the appropriate engagement.

About USCIB

USCIB promotes open markets, competitiveness and innovation, sustainable development, and corporate responsibility, supported by international engagement and regulatory coherence. Its members include U.S.-based global companies and professional services firms from every sector of our economy, with operations in every region of the world. As the U.S. affiliate of the International Chamber of Commerce (ICC), the International Organization of Employers (IOE) and Business at OECD (BIAC), USCIB provides business views to policy makers and regulatory authorities worldwide and works to facilitate international trade and investment. More at www.uscib.org.

Contact:

Rick Minor

VP and International Tax Counsel

rminor@uscib.org

USCIB at the UN General Assembly (UNGA76)

Published on October 5, 2021

As another challenging United Nations General Assembly (UNGA76) got underway with a “hybrid” High-Level opening week, COVID-19 and challenges of climate change, biodiversity loss, energy access, food security and lack of adequate progress towards the UN Sustainable Development Goals (SDGs) loomed large. USCIB convened several events to highlight the essential role of business in inclusive multilateralism and, for the first time, USCIB Board Members and Trustees stepped into the spotlight and clearly state USCIB commitment from the top to deliver private sector expertise and innovation to international challenges.

UNGA76 set the stage for critical decision-point policy meetings in the next six-months: the OECD Council of Ministers, the Glasgow Climate Summit and the WTO Ministerial to name a few. These events brought together members, representatives of the UN system, governments and civil society to share ideas for productive ways to advance a sustainable and resilient recovery through collaborative public-private partnerships and strengthened enabling frameworks.

Below are events USCIB hosted with its global partners and members, indicative of continuous involvement of USCIB policy managers, senior leaders, and members at the UN in New York and in other important events on the margins of the GA, including the ICC SDG Business Forum, the Business Fights Poverty Global Goals Summit and several webinars organized by the International Organization of Employers (IOE).

USCIB Business Townhall at UN General Assembly Reaffirms Business’ Commitment to Tackling and Solving Global Challenges

September 20: On the margins of this week’s 76th United Nations General Assembly (UNGA), USCIB partnered with the International Organization of Employers (IOE) and Business at OECD (BIAC) to organize a virtual discussion titled “Reinvigorating Inclusive Multilateralism: A Business Townhall at UNGA76.”  This meeting was among the first organized by business to comment on the just issued UN Secretary General’s Report and vision for international cooperation, “Our Common Agenda.”

The meeting was dedicated to the memory of John Ruggie, former UN Special Envoy for Business and Human Rights, who recently passed away.

Participants from business and industry, the UN, governments, and civil society tuned into the session, which highlighted the critical role of the private sector in being able to achieve ‘Our Common Agenda,’ and particularly of the U.S. private sector in aligning with global business to respond to global challenges, and provide solutions working through inclusive multilateralism.

Read Full story here.

 

USCIB Hosts A Conversation About the Future of Food

September 21: On the eve of the UN Food Systems and Nutrition Summit, USCIB convened a virtual event—The Future of Food: A Conversation— with experts and practitioners from across societal, scientific, value chain and innovation perspectives. The event highlighted the need for and successful examples of innovation across the food and agriculture industry, the roles and relevance of collaborative approaches to innovation, and how shared value and understanding can hold the key to future opportunities. Facilitated by USCIB SVP for Innovation, Regulation, and Trade Brian Lowry, the event was convened around the premise that in order to feed a growing population within planetary boundaries—considering amount of global climate emissions linked to agriculture and food—leaders must rethink how food, and especially protein, is made and sourced. Transforming the food system is not a solitary task; industry must come together and find new ways to collaborate and partner, and new alternatives must be created in a complementary manner.

Expert speakers included USCIB member Dr. Randal Giroux of Cargill, Chair of  USCIB’s Food and Agriculture Committee, as well as Valerio Nannini, Novozymes general manager for Novozymes Advanced Proteins Solutions. Other experts included Christine Gould, founder and president of Food for Thought, and The Good Food Institute Vice President, Corporate Engagement Caroline Bushnell.

Read full story here.

USCIB Joins Global Coalition on Sustainable Productivity Growth for Food Security and Resource Conservation

September 23: UN Secretary-General Antonio Guterres convened a Food Systems Summit during the UN General Assembly (UNGA76). The Summit launched bold new actions as part of the UN’s Decade of Action to achieve the SDGs. The goal of the Summit was to transform the way the world produces, consumes and thinks about food within the context of the 2030 Agenda for Sustainable Development in order to meet the challenges of poverty, food security, malnutrition, population growth, climate change and natural resource degradation. During the Summit, the U.S. announced the formation of a global Coalition of Action on Sustainable Productivity Growth for Food Security and Resource Conservation (the SPG Coalition). The coalition will accelerate the transition to more sustainable food systems through agricultural productivity growth that optimizes sustainability across social, economic and environmental dimensions. The coalition will advance a holistic approach to productivity growth that considers impacts and tradeoffs among multiple objectives. USCIB has joined the SPG Coalition.

USCIB Meets With Ngozi to Enhance Synergies Between WTO and US Industry

Published on September 29, 2021

U.S. Chamber of Commerce CEO and USCIB Trustee Suzanne Clark hosted a meeting of top U.S. trade association leaders on September 22 with World Trade Organization (WTO) Director General Dr. Ngozi Okonjo-Iweala in advance of the WTO ministerial meeting (MC12) in December. USCIB President and CEO Peter Robinson attended for USCIB, accompanied by Alice Slayton Clark, director of Investment, Trade and China. The intimate gathering provided an opportunity to enhance synergies and understanding between the WTO and U.S. industry, a goal for the new director general.

Dr. Ngozi repeated her continued concerns about the viability of the WTO, and the need to produce concrete results at the MC12 on fishery subsidies, food security, trade and health/access to vaccines, as well as the joint statement initiatives on e-commerce and services domestic regulations. Robinson noted the multifaceted challenges facing vaccine access, and urged reduction of trade and regulatory barriers to distribution and administration as the most important approach. He emphasized a letter USCIB sent to Dr. Ngozi this summer on this issue, co-signed by the Chamber and BusinessEurope, among others.

In addition, Robinson stressed USCIB interest in revitalizing and expanding negotiations on an environmental goods agreement that were sidelined in 2016 largely over concerns about the definition of products to be included. Other USCIB priorities were also raised during the meeting, including: concerns about industrial subsidies, dispute settlement procedures, and special and differential treatment; and support for the science of agricultural biotechnology and extension of the e-commerce moratorium. There was a good deal of consensus on many of these key issues among the participants.

Robinson also expressed support for the initiatives to work with the WTO in improving the global trading system that are underway in the three global business organizations with which USCIB is affiliated, International Chamber of Commerce (ICC), International Organization of Employers (IOE) and Business at OECD (BIAC).

USCIB’s member companies rely on the WTO as the multilateral forum for resolving trade disputes and expanding market access for selling goods and services overseas. It urges the Biden Administration to take a leadership role at the MC12 in reforming and updating the WTO so it can remain a viable source for trade adjudication and liberalization in the decades to come.

USCIB Event at UN General Assembly Reaffirms Business’ Commitment to Countering Global Challenges

Published on September 22, 2021
Top: Brian Lowry (USCIB), Norine Kennedy (USCIB) Bottom: Michele Parmelee (Deloitte), Hans-Jorn Weddige (Business at OECD)

On the margins of this week’s 76th United Nations General Assembly (UNGA), USCIB partnered with the International Organization of Employers (IOE) and Business at OECD to organize a virtual discussion titled “Reinvigorating Inclusive Multilateralism: A Business Townhall at UNGA76.” The meeting was dedicated to the memory of John Ruggie, former UN Special Envoy for Business and Human Rights, who recently passed away.

Ester Baiget, Novozymes chief executive, and USCIB Trustee and Sustainability Champion, opened the event. “We must drive the change we want to see together,” said Baiget in her opening remarks.

Other USCIB Board members, namely Michele Parmelee (Deloitte) and John Frank (Microsoft), also served as speakers, on climate change, business and human rights, and on new ways for the business community to engage with and strengthen the effectiveness of the multilateral system en route to a sustainable and inclusive recovery.

UNGA76 convenes at a time of multiple challenges, which are putting the multilateral system to the test and raising questions about the resilience of the UN and such basic values of democracy, rule of law and inclusive societies. The event focused on three fireside chats, specifically aligning with key priorities of the President of the UN General Assembly —climate change and environment; human rights and business; pandemic response and recovery.

“UN Secretary General Antonio Guterres recently issued a report, ‘Our Common Agenda,’ clearly highlighting the need to reinvigorate multilateralism,” said USCIB President and CEO Peter Robinson. “Business is ready to work with the international community and contribute to ‘break throughs’ that protect people and planet.”

Participants from business and industry, the UN, governments, and civil society tuned into the session, which highlighted the critical role of the private sector in being able to achieve ‘Our Common Agenda,’ and particularly of the U.S. private sector in aligning with global business to respond to global challenges, and provide solutions working through inclusive multilateralism.

Speakers included:

Robin Ogilvy, OECD Special Representative and Permanent Observer to the UN

Matthias Thorns, IOE Deputy Secretary General

Dr. Scott Ratzan, Executive Director, Business Partners for Sustainable Development, an initiative of The USCIB Foundation

Larry O. Gostin, Georgetown University Law School

Fernando Ylanes Almanza President, Social Security Commission, CONCAMIN

USCIB President Peter Robinson Issues Statement Upon Death of Richard Trumka

Published on August 16, 2021
Richard Trumka
Image Source: Alex Brandon/AP Photo

New York, N.Y., August 05, 2021—USCIB President and CEO Peter Robinson has issued the following statement upon the death of Richard Trumka:

“On behalf of USCIB and its member companies, I would like to extend our deepest sympathy to the family and colleagues of Richard Trumka. His dedication to the labor movement and the interests of American workers and their families has long earned him the respect and admiration of the business community.

“That dedication also extended to working people around the world. As the American member of Business at OECD (BIAC) and the International Organization of Employers (IOE), USCIB has been proud to work with Rich and the AFL-CIO in both the OECD and ILO, where we shared the common objective of ensuring that labor rights are respected internationally. Rich was a true global leader with whom we were privileged to work in partnership.”

About USCIB

USCIB promotes open markets, competitiveness and innovation, sustainable development, and corporate responsibility, supported by international engagement and regulatory coherence. Its members include U.S.-based global companies and professional services firms from every sector of our economy, with operations in every region of the world. As the U.S. affiliate of the International Chamber of Commerce (ICC), the International Organization of Employers (IOE) and Business at OECD (BIAC), USCIB provides business views to policy makers and regulatory authorities worldwide and works to facilitate international trade and investment. More at www.uscib.org.

USCIB Meets With New OECD Secretary General Cormann on His First Official DC Visit

Published on August 4, 2021
L-R: Kennedy, Robinson, SG Cormann, Johnston meet in the OECD Washington DC office in July 2021

USCIB members joined a first meeting and dialogue with OECD Secretary General Mathias Cormann, hosted by the U.S. Chamber of Commerce on July 21 in Washington DC. USCIB President and CEO Peter Robinson, and Citi Managing Director and Business at OECD (BIAC) Chair Charles R. Johnston, led the discussion, along with USCIB Board Member and Executive Vice President for International Affairs at the Chamber Myron Brilliant.

As the U.S. affiliate of and representative to BIAC, the official business spokes-organization to the OECD, USCIB values and engages with OECD on a wide range of cross-cutting issues. In light of the U.S. chairmanship of this year’s OECD Ministerial Council Meeting on October 5–6 in Paris, the meeting offered USCIB Committee Chairs and other active member representatives the opportunity to highlight their priorities for OECD’s policy recommendations.

SG Cormann described his leadership priorities for OECD, which center around restoring economic growth and recovery, including through multilateral trade. He highlighted the thought leadership role of the OECD in G7 and G20 discussions of a global corporate minimum tax rate. He also discussed the potential for OECD to contribute to a possible similar global conversation on carbon pricing and carbon border adjustment. Other topics covered included responsible business conduct; tackling illicit trade; and innovation and digital economy.

In his closing remarks, Robinson stated, “Imagine what could be accomplished if all multilateral institutions followed the OECD’s consultative model to work with business and co-create solutions to urgent challenges!”

Robinson thanked Cormann, and said that USCIB and the American business community are dedicated to working with OECD through BIAC to show the way through and past the pandemic on fundamentals like regulatory coherence and combatting corruption, as well as on emerging technologies and issues.

OECD Concludes Final Workshop on Illicit Trade in E-Commerce Series

Published on July 28, 2021

The OECD Task Force on Countering Illicit Trade (TF-CIT) recently concluded the third and final workshop in their “Project on Illicit Trade in E-Commerce” series, focusing on the experiences of online platform operators in combatting counterfeiting. Business at OECD Anti-Illicit Trade Expert Group (AITEG) supported these workshops as part of the new public-private partnership with TF-CIT.

USCIB Anti-Illicit Trade Committee Chair David Luna, joined by, among others, USCIB members from Amazon, eBay and Walmart, used this workshop to express their concerns and ongoing approaches towards combating illicit trade, as well as, possible ways forward, including companies’ online platforms planning to make better use of Artificial Intelligence (AI), for example, with regards to improved authentication programs and a greater focus on addressing intellectual property fraud. USCIB members highlighted that to counter illicit trade more effectively, closer partnerships within the business community are essential and stressed that collaboration with public authorities, as well as business chambers and associations should be enhanced.

“As the Business at OECD AITEG Chair, I applaud our new partnership with the OECD Task Force on Countering Illicit Trade (TF-CIT),” said Luna, “and I commend our members for their commitment to work through public-private partnerships to help fight illicit trade across the digital world. Together through collective action, information-sharing, and best practices, we can proactively target today’s online nefarious actors and criminal networks involved in the trafficking in counterfeit and pirated goods.”

As this was the final workshop on illicit trade in e-commerce, the OECD TF-CIT has created a website dedicated to this project available here.