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Hampl Weighs In On WTO Discussions on E-Commerce

Published on November 19, 2019

The sixth negotiating round of the Joint Statement Initiative (JSI) on E-Commerce is taking place at the WTO in Geneva this week. The JSI is negotiating a plurilateral agreement on digital trade, also referred to as the WTO E-Commerce Agreement. USCIB Senior Director, Investment Trade and Financial Services Eva Hampl is on the ground in Geneva this week on behalf of USCIB and members in support of this important initiative at the WTO, which attempts to write global rules on digital trade.

The JSI started out with seventy-six WTO members and as of this week that number has risen to 81, with Indonesia being the latest to join the plurilateral effort. Issues discussed this week include customs duties, access to internet and data, business trust, capacity building, legal issues, and market access.

“This will be the final round before the WTO General Council meeting taking place December 9-11 in Geneva. Negotiations are expected to resume in the new year at a similar pace, with an eye toward an outcome by MC12 in June 2020,” stated Hampl.

Earlier this year, USCIB issued recommendations on the E-Commerce negotiations, reflecting member priorities, including issues like data flows and localization. USCIB is actively engaging with governments involved in the negotiations in Geneva through various efforts, including the Digital Trade Network and the International Chamber of Commerce.

On Thursday, November 21, USCIB is supporting a side event by the ICC on the Moratorium on Customs Duties on Electronic Transmission (E-Commerce Moratorium), which is currently expiring at the end of the year. The panel will discuss the implications of not extending the moratorium, including in the context of the recent OECD Report. At this time, fifteen WTO members have proposed to extend the Moratorium until MC12 in June 2020. In order for an extension to be possible, unanimous support is required.

Donnelly Pushes for Strong Investment Protections at UNCTAD

Published on November 19, 2019

USCIB Vice President Shaun Donnelly led a small but vocal team of international business representatives at the November 13 annual High-Level Experts Group on International Investment Agreements (IIAs) at the UN Conference on Trade and Development (UNCTAD) in Geneva. In a room dominated by developing country and NGO reps and academics, Donnelly was the sole business speaker on the opening keynote panel. Donnelly also joined a French business delegate on the key follow-up panel on “Reforming Investor-State Dispute Settlement (ISDS).” Other panels included business representatives from USCIB’s BDI colleagues (German industry group) and from the World Economic Forum (WEF).

“In both my presentations, I emphasized a business view on the need for strong investment protections to help reduce risk and mobilize much-needed foreign direct investment (FDI) flows,” said Donnelly. “With limited public finance and official development aid resources, FDI is key to global economic growth and progress toward the UN Sustainable Development Goals (SDGs). Furthermore, strong IIAs are key to mobilizing FDI. In turn, strong ISDS provisions are essential to effective IIAs.”

According to Donnelly, on the ISDS panel, he was able to rebut a European Commission official who was pitching, as they are in multiple fora these days, their proposal for a standing multilateral investment court to replace the well-established ISDS arbitration system.

“UNCTAD can be a challenging organization, often promoting unhelpful non-market views, but in the investment area it offers a unique opportunity for good dialogue with developing country officials and a platform to confront unhelpful EU initiatives,” he added.

Domain Name System Abuse: A Hot Topic at Recent ICANN Meetings

Published on November 19, 2019

The Internet Corporation for Assigned Names and Numbers (ICANN) wrapped up six days of annual meetings on November 7 in Montreal, Quebec, which featured, at times, heated debate about the roles of ICANN and the contracted parties in mitigating domain name system (DNS) abuse and related security problems. According to USCIB Vice President for ICT Policy Barbara Wanner,  who attended the meetings in her capacity as the Business Constituency’s (BC) representative to the Commercial Stakeholder Group (CSG), while security threats and the way the ICANN community tracks, reports, and mitigates them have always been an important focus of ICANN’s work, attention to this issue has intensified in recent months amid reports of sharp increases in phishing attacks and studies estimating that the cost of global cybercrime reached approximately $600 million in 2018.

“ICANN’s Business Constituency (BC), of which USCIB is a member, highlighted profound gaps in DNS abuse mitigation throughout the week’s meetings with the ICANN Board, senior ICANN staff, and other constituencies and the need to clarify definitions of abuse and aggressively enforce against offenders,” said Wanner.

According to Wanner, participants at ICANN 66, the organization’s Annual General Meeting, continued to advance discussions about the building blocks of a model to enable third-party access to nonpublic domain name system registration data for legitimate purposes that would comply with EU General Data Protection Regulation (GDPR) and other privacy regimes. The draft model may be finalized as soon as December, more probably in early 2020, following receipt of legal advice from the European Data Protection Board (DPB).

The meeting also continued to explore how to evolve ICANN’s multistakeholder model to improve its efficiency and effectiveness as part of the FY 2021-2025 Strategic Plan as well as other DNS management issues.

Wanner’s role as BC representative to the CSG has enabled greater input to policy discussions at the CSG executive committee-level on behalf of USCIB members and facilitated important meetings with senior ICANN officials and other key constituencies.  USCIB member representatives from Amazon, AT&T, BT Americas, CenturyLink, Facebook, Google, Microsoft, and NBC Universal were present in Montreal and actively contributed to all policy discussions.

Focus on Sustainability, New Technologies at 2019 World Trade Symposium

Published on November 11, 2019

USCIB once again sponsored the World Trade Symposium this year November 6-7 in New York. The Symposium, hosted by Finastra and programmed by The Economist Events, brought together researchers, government officials and private sector leaders to discuss “Trade in an Uncertain World.” According to USCIB Assistant Policy and Program Manager Daniella Goncalves, several themes emerged throughout the Symposium, including the impact of new technologies on trade and investment, the need for greater interoperability of new technologies, the importance of sustainability to trade and investment and the continued importance of free trade.

Political uncertainty took center stage during the event’s discussions. The rise of populism and protectionist policies, as well as perceived lack of efficiency and productivity in multilateral fora, were identified as threats to be addressed. Many participants expressed the need to reform multilateral institutions and reaffirmed their support for trade liberalization. The need for U.S. leadership in such reform and trade liberalization activities was highlighted as a priority. Participants were in agreement that the restoration of predictability, reciprocity and fairness is required to bolster global trade and investment.

Digitization has the ability to drive down costs and speed of getting goods to market, but standardization of data protection and date flow regulation are priorities. The importance of regulating data flows and the need for standardized data protection laws, new technologies and the issue of illicit trade were highlighted by several panelists, including the World Trade Organization (WTO) Deputy Director-General Ambassador Alan Wm. Wolff, Research Professor of International Affairs & Director of Digital Trade & Data Governance hub Susan Ariel Aaronson and President of the Mediterranean Shipping Company Fabio Santucci.

The use of blockchain was characterized as a means to more efficiently engage in trade and investment, as well as increase sustainability through decreased paper usage. However, interoperability of blockchains and standardization of regulatory frameworks remain hurdles to wide-spread deployment of this technology.

It was noted that the International Chamber of Commerce (ICC) is working with an Asia-based partner to develop a blockchain technology to enable traceability and tracking of goods. The goal ultimately is to promote interoperability among various blockchain networks and technology platforms.

Recognizing the rise of consumer interest in sustainability, the issue of sustainable trade and investment was discussed. According to the panelists, millennial consumers are driving interest in and profitability of sustainable goods and services. Trade has lifted hundreds of millions out of poverty; to continue to see the benefits of trade, growth needs to be inclusive. USCIB is actively advocating on these important issues in various multilateral fora, including at the Organization for Economic Cooperation and Development (OECD) in Paris.

OECD Report Weighs In On WTO Moratorium Debate

Published on November 11, 2019

The much-anticipated Organization for Economic Cooperation and Development (OECD) report on the World Trade Organization (WTO) moratorium on customs duties on electronic transmissions was de-classified on November 4.

According to USCIB Senior Vice President for Policy and Government Affairs Rob Mulligan, the report, “Electronic transmissions and international trade – Shedding new light on the moratorium debate,” concludes that revenue implications of lifting the Moratorium are likely to be relatively small and would come at the expense of more significant gains in consumer welfare (estimated at 940 million USD) and export competitiveness.

The Moratorium, which has been in place since 1998 and has been continuously extended every couple of years since then, is once again due to expire at the end of 2019. Keeping the Moratorium is crucial for business, and USCIB has been actively engaged in pushing back against the opponents of extending the Moratorium with the ultimate goal of making it permanent.

The OECD report also notes that the highest estimated share of opportunity cost in terms of foregone revenue is in digitizable goods, which is low, at 1.2% of total trade. This will likely remain low even with the advent of technologies such as 3D printing, which are unlikely to have far-reaching implications on trade in the near term.

The report noted that tariffs also come with costs. Tariffs are associated with lower output and lower productivity and their burden falls mainly on domestic consumers, not foreign firms. Tariffs are also an unstable source of revenue. Alternatives exist in the form of non-discriminatory value added taxes or goods and services taxes.

The WTO General Council meeting, set for December 9-11, will provide a final opportunity to extend the Moratorium.

USCIB Welcomes New US Ambassador to UN in Geneva

Published on November 11, 2019
L-R: Rob Mulligan, Peter Robinson, Andrew Bremberg, Shaun Donnelly

Newly-confirmed U.S. Ambassador to the United Nations offices in Geneva, Andrew Bremberg, visited USCIB’s Washington office on November 5 to share U.S. government priorities and to hear business perspectives and concerns before heading to Geneva to assume his post later this week. Throughout the discussion, Ambassador Bremberg emphasized that the U.S. government’s current priority, as well as his top personal priority, is to reform and improve international organizations.  

USCIB members from The Walt Disney Company, Facebook, ExxonMobil, Hanesbrands, PMI and Walmart, along with USCIB policy experts, emphasized the importance of supporting inclusive multilateralism such as that found in the World Trade Organization and International Labor Organization, and changing the persistent and counter-productive discriminatory treatment that the private sector encounters in some UN agencies.

USCIB’s Norine Kennedy, who helped lead the USCIB delegation to Geneva earlier this year, noted USCIB initiatives to help further inclusive multilateralism through USCIB’s All In Campaign. Several participants expressed appreciation for the support Ambassador Bremberg’s team at the U.S. Mission in Geneva has been providing to U.S. business.

“We see ourselves as global regulatory diplomats,” added USCIB President and CEO Peter Robinson. “The challenges facing society today cannot be solved by governments without having business at the table.  We look forward to working with Ambassador Bremberg and his staff as he begins his important work with the WHO, the World Intellectual Property Organization, the International Labor Organization, the International Telecommunications Union and other UN agencies in Geneva.”

 

New OECD Deputy Secretary General Meets With USCIB

Published on November 11, 2019
L-R: OECD Deputy Secretary General Ulrik Vestergaard Knudsen; Head of the OECD’s Washington office Will Davis

USCIB members and staff had the opportunity to meet with the new Organization for Economic Cooperation and Development (OECD) Deputy Secretary-General Ulrik Vestergaard Knudsen on November 5 at the USCIB Washington DC office. Knudsen’s diverse policy portfolio at the OECD includes science, technology and innovation, trade and agriculture, the OECD Center for Entrepreneurship, SMEs, as well as regions and cities.

The dialogue between Knudsen and USCIB members focused on areas of mutual interest such as taxation policy, including the pressing issue of digital taxation, as well as cross-border data flows, healthcare, trade and investment, digital trade, and the Going Digital Project. Knudsen also mentioned Artificial Intelligence (AI) as an increasingly important issue for the OECD and the establishment of the OECD AI Policy Observatory, which will help countries nurture and monitor the responsible development of trustworthy AI systems for the benefit of society.

L-R: Norine Kennedy (USCIB), Will Davis (OECD Washington), Ambassador Ulrik Vestergaard Knudsen (OECD), Peter Robinson (USCIB), Eva Hampl (USCIB), Rob Mulligan (USCIB)

USCIB members from Microsoft, IBM, General Electric, CropLife America, Walmart and others, benefited from the opportunity to hear directly from OECD leadership regarding the OECD’s priorities as well as an update on the OECD accession process. USCIB participants underlined the importance of maximizing access for business and other responsible stakeholders in all OECD committee meetings.

“We are grateful that DSG Knudsen took the time to meet with U.S. business,” said USCIB Senior Vice President for Policy and Government Relations Rob Mulligan. “USCIB staff and members always appreciate an opportunity to provide perspectives to the OECD staff and secretariat to help inform the OECD’s science-based policy recommendations.”

USCIB is the U.S. national committee of Business at OECD (BIAC).

P&G, Pepsi Receive Prestigious State Department ACE Awards

Published on November 5, 2019
P&G’s Selina Jackson accepts ACE Award for Women’s Economic Engagement

Secretary of State Mike Pompeo presented the State Department’s annual Awards for Corporate Excellence (ACE Awards) for 2019 at an impressive public ceremony at the Department on October 31. As in most years, USCIB member companies swept the large multinational company categories.

Procter & Gamble Vice President of Global Government Relations and Public Policy Selina Jackson accepted the ACE Award for Women’s Economic Empowerment on behalf of P&G Asia Pacific for its impressive program to develop and promote women executives and managers through that key region.

PepsiCo’s Phil Myers accepts ACE Award for Sustainable Operations

PepsiCo Senior Vice President, Global Government Affairs and Public Policy, Phil Myers accepted the ACE for Sustainable Operations on behalf of PepsiCo India, recognizing its path-breaking work on water conservation and quality in India. Both recipients, as well as the winners in the parallel Small and Medium Enterprise categories, delivered gracious remarks to the crowd of U.S. government officials, foreign diplomats and business leaders.

PepsiCo and P&G were selected from impressive cohorts of nominations by U.S. Ambassadors around the world, each nominating particularly outstanding corporate citizens in the local U.S. business community.  P&G is a repeat winner, having won a 2011 ACE for its work in Nigeria and Pakistan. USCIB Vice President and former U.S. Ambassador Shaun Donnelly represented USCIB at the ceremony and congratulated USCIB member company winners.

“It seems almost every year, USCIB member companies win one or both of these prestigious ACE Awards,” Donnelly said.  “Our member companies, typified by P&G and PepsiCo, are widely recognized as leaders in all areas or corporate responsibility and sustainability in a wide range of foreign countries, developed and developing, including in some very challenging environments. We are very proud to see them recognized.”

For a list of previous ACE Award winners, see here.

 

USCIB Member Reports on Recent UN International Trade Law Meetings

Published on November 5, 2019

Lauren Mandell, an international investment expert from the Washington DC office of USCIB member WilmerHale and a former deputy assistant U.S. Trade Representative for investment policy, represented USCIB at the October 14-18 meeting of the United Nations Commission on International Trade Law (UNCITRAL) Working Group III in Vienna. Mandell was one of a small handful of business and arbitration community observers at this semiannual meeting.

UNCITRAL’s Working Group III is focused on “reforming” the Investor-State Dispute Settlement (ISDS) arbitration system, which is widely used to resolve investment disputes between host governments and foreign investors. Some governments and civil society activists have long criticized the ISDS system. In recent years the European Union has jumped on board, aggressively pushing its proposal for a government-dominated multilateral investment court and appellate mechanism to replace traditional ISDS. According to Mandell, even long-standing U.S. government policy supporting a high-standard ISDS system has wavered.

Photo source: UNCITRAL.org

“It was very valuable to have an experienced, eloquent investment policy expert like Lauren participating in this important investment policy body,” said USCIB Vice President for Investment Policy Shaun Donnelly. “Although UNCITRAL may be, to some, an obscure UN agency, it’s where the action is these days on international investment policy and, specifically, on ISDS. We at USCIB and many of our member companies see ISDS as a key pillar for global Foreign Direct Investment (FDI) decisions. We will continue to work with Lauren, the U.S. government and our members in UNCITRAL and beyond to defend strong investment protections.”

The next meeting of UNCITRAL Working Group III, scheduled January 20-24, 2020, will be critically important for the business community because the meeting will focus on the EU’s proposed multilateral investment court. For more information, contact Shaun Donnelly or Lauren Mandell (lauren.mandell@wilmerhale.com) for further information.

USCIB Joins Global Business Network on Forced Labor

Published on October 29, 2019

USCIB proudly became a new member recently of the International Labor Organization’s (ILO) Global Business Network on Forced Labour (GBNFL). A “network of networks,” GBNFL seeks to bring together businesses of all sizes and sectors, and their networks, from around the globe to work towards the eradication of forced labor. USCIB Vice President of Corporate Responsibility and Labor Affairs Gabriella Rigg Herzog attended GBNFL’s first annual meeting on October 21 in Berlin, where participants engaged in discussions around what coordination and collaboration looks like, as well as how best to engage smaller enterprises to combat forced labor.

In brainstorming about opportunities for shared action provided by this new umbrella network, participants recognized that many of the challenges stem from local governance gaps. Participants discussed ideas and noted the critical role that the ILO can play in assisting national and local governments to mount a robust domestic labor law enforcement response to this issue. Additionally, participants expressed a hope that additional employer organizations from developing countries would be encouraged to join the GBNFL, particularly as the members of those employer networks are the local businesses and SMEs producing for either domestic or foreign markets. Participants agreed that capacity building, both of governments and SMEs, is crucial to any plan to help achieve SDG target 8.7.

USCIB members will benefit from our active involvement in GBNFL through invitations to participate in special events and webinars hosted by GBNFL, as well as have the opportunity to help inform the USCIB feedback to GBNFL as its leaders develop future workplans. For the broader public, we encourage you to learn more about the GBNFL and avail yourself of the data, tools and resources regarding forced labor and human trafficking housed on GBNFL’s new website and public library of selected resources.