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USCIB Statement on the Revised OECD Guidelines for Multinational Enterprises on Responsible Business Conduct

Published on June 9, 2023

New York, N.Y., June 09, 2023—On June 8, OECD governments adopted the revised Guidelines for Multinational Enterprises on Responsible Business Conduct. USCIB and its members have long recognized and promoted the Guidelines as the most comprehensive, government-backed, voluntary practical framework for responsible business conduct. We proudly advocate for responsible business conduct and recognize the crucial role that businesses have in promoting sustainable practices. This revised version, however, promulgates new far-reaching expectations on companies, raising serious concerns about its practicality.

U.S. businesses have consistently demonstrated their leading role in corporate social responsibility, championing initiatives that drive positive change across industries worldwide. Our unwavering commitment to the highest practicable standards for responsible business conduct remains, and we stand ready to support and implement international cooperation across private and public sectors to prioritize sustainability, fair labor practices and social responsibility.

The 2022-2023 revision of the Guidelines has resulted in substantial, far-reaching, and sometimes unimplementable changes, significantly expanding the complexity, scale, and scope of expectations on multinational enterprises and other businesses, posing risks to the Guidelines’ serving as a practical, voluntary reference for companies. Our concerns encompass, among others, upstream and downstream due diligence for an expanded range of business relationships, even beyond contractual agreements, and new approaches on environment and climate change due diligence.

USCIB actively participated in all negotiation rounds as part of Business at OECD (BIAC), and we align with their views on the revised Guidelines. Along the process, we provided constructive, comprehensive, and consensus-based private sector inputs, and while we greatly appreciate the consultations and recognize that many of our comments were reflected in the text, we regret that the revision process was not more aligned with previous practice, when OECD institutional stakeholders co-drafted the text together with the OECD Secretariat, thus ensuring business buy-in.

We welcome the fact that the voluntary and aspirational nature of the Guidelines was preserved. However, we remain concerned that some new provisions might conflict with U.S. law, particularly the right of association for workers without employment relationships. In addition, this document should not be considered as a template for binding regulatory or legislative action at international, regional, national, or local levels.  Effective responsible business conduct legislation depends on laws that are practical and reflect views of the private sector along with realities on the ground. We stand ready to provide guidance and suggestions to governments in this respect.

Companies will need sufficient time to assess the newly introduced complexities. We stress the importance of a balanced approach to implementation, taking into account business realities and complex contexts, especially in states with significant institutional, rule of law or enforcement challenges.

This expression of serious concern should not be interpreted as a rejection of business commitment and action to advance human rights globally, tackle environmental challenges, promote good practices wherever it operates, and contribute to partnership and positive impact for people and planet. We remain committed to the highest responsible business conduct standards, while enabling, facilitating, and supporting conditions for business to thrive and contribute to delivery of the UN Sustainable Development Goals (SDGs).

USCIB and its members look forward to working with the OECD, its member states, and other stakeholders to advance the critical role of business in tackling sustainability challenges, promoting job creation, innovation, and investment, and informing sound policy and its implementation. We are committed to advancing and amplifying OECD’s best implementable practices and will continue to serve as a proponent of and champion for promoting responsible business conduct globally.

About USCIB

The United States Council for International Business (USCIB) advances the global interests of American business. We do so through advocacy for an open system of world trade, finance, and investment, where business can flourish and contribute to economic growth, human welfare, and environmental protection.  We play a leading role in informing the negotiation and adoption of international labor standards, and in human rights, labor, and environmental   policy deliberations at the United Nations, OECD, and ILO, as the sole U.S. affiliate of the International Chamber of Commerce (ICC), Business at OECD (BIAC) and the International Organization of Employers (IOE).  In addition, USCIB is the only U.S. business organization with standing at the UN Economic and Social Council (ECOSOC), and is recognized at the UN Environment Program (UNEP), UN Framework Convention on Climate Change (UNFCCC) and the UN Convention on Biological Diversity (UN CBD).

USCIB Releases Pride Month Statement, Supporting Equality and Inclusion

Published on June 8, 2023

New York, N.Y., June 8, 2023—Article 1 of the United Nations’ Universal Declaration of Human Rights states that “All human beings are born free and equal in dignity and rights.”  The observation of Pride Month, which this June celebrates the contribution of lesbian, gay, bisexual, transgender, and queer individuals to our communities and our societies, sits firmly in this human rights tradition. The United States Council for International Business (USCIB) is proud to take this occasion to underscore our commitment and that of our members to support LGBTQI+ equality and inclusion.

In this regard, we applaud the commitment of the U.S. government to support LBGTQ+ rights, including the efforts of U.S. Ambassador to the UN Linda Thomas-Greenfield to integrate these rights into the work of the UN Security Council.

“We and our companies are committed to treating all individuals with dignity and respect and we call on the international community to fight for the human rights of LGBTQI+ people around the world,” said USCIB Director, Corporate Responsibility and Labor Affairs Ewa Staworzynska. 

Sixty-four countries, nearly half of them in Africa, still have laws that criminalize homosexuality, and at least nine criminalize other forms of gender expression. USCIB will continue to work through our international affiliates to raise the voice of business in the ILO, OECD, and the United Nations to advocate for the rights of the LGBTQI+ community around the world.

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.

Business at OECD Releases Statement Ahead of OECD Ministerial Council

Published on June 7, 2023

The OECD Ministerial Council is taking place June 7-8 under the theme, Securing a Resilient Future: Shared Values and Global Partnerships. In light of the Ministerial, Business at OECD (BIAC) has released a statement to the OECD with insights drawn from the forthcoming 2023 Business at OECD Economic Policy Survey. Some of the themes addressed in BIAC’s insights include business concerns about the war in Ukraine, which has exacerbated inflation rate developments, labor shortages and energy prices. BIAC also raises concerns about supply chains disruptions, the need for structural reforms around infrastructure, digitalization, regulatory burdens and green transition.

The Ministerial is taking place amid persistent tension in world affairs, including Russia’s illegal war in the Ukraine, which has resulted in insurmountable human suffering in the Ukraine, as well as humanitarian and economic crises globally. Additionally, economies around the globe continue to face challenges following the COVID-19 pandemic and challenges around climate change.

BIAC’s statement emphasizes that this “unsettled world order requires an ever-greater capacity and commitment to multilateral cooperation and collective progress on these common fronts. The engine of societal progress, the world economy, has been paying a high price for an increasingly unstable rules-based international system, and the past year has been challenging for many businesses. The OECD private sector remains committed to defend our common values and rules-based order and continues to support effective government action towards these goals.”

According to BIAC, in the current context, the success of our economies relies on successful diplomacy, meaningful international cooperation and effective multilateralism in support of pragmatic policies.

For more information, please see the links below:

BIAC Statement to the OECD on Securing a Resilient Future: Shared Values and Global Partnerships

2023 Business at OECD Economic Policy Survey

BIAC Year Highlights: How We Delivered Value to Our Members (May 2022-May 2023)

USCIB Participates in US-EU Trade and Technology Council Meeting in Sweden

Published on June 7, 2023

USCIB Vice President for International Investment and Trade Policy Alice Slayton Clark was in Luleå, Sweden to attend the fourth meeting of the U.S.-EU Trade and Technology Council (TTC), a platform to advance Transatlantic cooperation and democratic approaches to trade, technology, and security.   

An official delegate, Clark served as a principal in the TTC’s Trade and Labor Dialogue (TALD), a selective exchange between business and unions on both sides of the Atlantic to explore policies related to the intersection of trade, labor and technology. The meeting in Luleå showcased an agreement on forced labor trade strategy principles reached between business and labor partners. The principles reflect inputs from USCIB members on the need for a “multifaceted” approach involving diplomacy, foreign assistance, capacity building, and supply chain due diligence to address the root causes of the problem. Because industry and unions could not reach agreement on the role of border enforcement as a trade tool, footnotes were inserted to reflect differences. 

“USCIB is pleased business and unions were able to agree through the TALD process on principles to address forced labor,” Clark asserted.  “Importantly, the document notes industry support for incentives rather than punitive border measures as trade tools of choice to prevent violative goods from being produced and entering into commerce in the first place.”    

Also discussed by TALD participants were trade and labor issues linked to the green transition, a topic of key concern to the US and EU and showcased in official visits to the green steel Hybrit plant in Luleå. USCIB initial views on the topic promoted a comprehensive strategy of trade, investment, education and training policies. USCIB will work with members to develop these points as the TALD green transition discussions continue in the months ahead.   

Importantly, the TTC meeting also produced a Joint Statement that reaffirms transatlantic alignment on the war in Ukraine, reform of the World Trade Organization, policies against economic coercion and pursuit of supply chain diversification. Many issues discussed at the meeting reflect transatlantic convergence on policies related to Russia and China. As such, according to Clark, the TTC continues to draw high level government participation including full engagement from U.S. Secretary of State Antony Blinken, Secretary of Commerce Gina Raimondo, U.S. Trade Representative Katherine Tai, European Commission Executive Vice President Valdis Dombrovskis and European Commission Executive Vice President Margreth Vestager.     

Other key issues advanced in Luleå were the launch of principal level consultations to head off subsidy races for the semiconductor industry, a task force to address cooperation in quantum technologies, the development of a work program for the Transatlantic Initiative on Sustainable Trade, exploration of increased use of digital tools to enhance trade, continued cooperation on export controls, illegal diversion of technologies and sanctions, availability of critical minerals, and managing emerging technologies, such as Artificial Intelligence. 

USCIB Customs and Trade Facilitation Committee Meets in Chicago

Published on June 1, 2023

USCIB held its Customs and Trade Facilitation Committee (CFTC) meeting at Google’s Chicago offices on May 16. 

The meeting, which was attended by USCIB members and staff, included a robust agenda. 

According to USCIB Senior Director for Customs and Trade Facilitation Megan Giblin, members were updated on and discussed the work of the ICC Customs and Trade Facilitation Commission. Topics addressed included the ICC’s paper on transboundary waste for recovery, 21 CCF/ Customs Modernization, Forced Labor, the Green Trade Innovation and Incentives Forum scheduled for July 11th and related CBP Federal Register Notice call for comments as well as other priority CFT topics.  

The Committee also received updates on the work of both the World Trade Organization (WT0) and the World Customs Organization (WCO). Regarding the WTO, updates included work undertaken by the WTO Committee on Trade Facilitation, such as those pertaining to, for example, Indonesia Regulation 190 and humanitarian cargo / shipments. WCO matters included the upcoming Secretary General (SG) election, discussion on recent and upcoming meetings in the technical classification and valuation space. 

Following the meeting, Google hosted an outdoor, rooftop, networking reception.  

USCIB Conducts eATA Carnet Pilot With CBP at JFK Airport

Published on June 1, 2023

USCIB collaborated with U.S. Customs and Border Protection (CBP) Headquarters staff and leaders from John F. Kennedy International Airport (JFK) on a training, hosted on-site at JFK in New York on February 7, 2023. The goal of the training was to educate customs officers on the “eATA” Carnet System and process.

This training built on past trainings with JFK officers and advanced implementation of the eATA test at JFK. The “eATA” is the digital version of the ATA Carnet, currently a paper-based unified customs document used for the temporary movement of goods that are free of customs duties and taxes across the 79 countries and territories that are part of the ATA Carnet system. ATA Carnets are critical tools of trade facilitation for companies of all sizes, especially the small and medium size enterprises (SMEs), which can be used for multiple trips into countries that are party to the ATA System, providing, for example, reduced cost to Holders as well as greater predictability at each customs border.

The joint USCIB-CBP HQ hands-on training at JFK was in preparation for Holder (user) selection and formal launch of the eATA test at JFK, according to USCIB Senior Vice President and Chief Financial Officer Declan Daly. The ICC World Chamber Federation pilot, which the U.S. is participating in, is supported by the World Customs Organization (WCO).

Belgium, China, Germany, Russia, Switzerland and the United Kingdom are also participating in the pilot.

According to Daly, this training included end-to-end processing of several eATA Carnets in a test environment. USCIB is working in close collaboration with CBP HQ, JFK and ICC WCF IT developers of the eATA Carnet on next steps.

“We hope to conduct further testing in the coming months at other port locations beyond JFK, as well as engage in dialogue with Canada in partnership with the CBP, Canada Customs and the Canadian NGA,” added Daly.

The eATA System is developed by the International Chamber of Commerce (ICC) World Chambers Federation (WCF). USCIB manages and guarantees the ATA Carnet system in the United States. USCIB’s Daly is part of the ICC WCF’s eATA Project Team responsible for the development and rollout of the new digital ATA Carnet (eATA) system and has also recently been elected Vice Chair of the World ATA Carnet Council (WATAC).

 

Robinson Presides Over His Final Board of Directors Meeting as President and CEO 

Published on June 1, 2023
L-R: USCIB Chair Eric Loeb (Salesforce), Peter Robinson, Board member Emily Dickens (SHRM) and USCIB Secretary Robert DeLaMater (Sullivan & Cromwell)

Following a 40-year career at USCIB, President and CEO Peter Robinson presided over his final USCIB Board of Directors meeting on May 24.  

Robinson, who announced his retirement in December, expressed his appreciation to the USCIB Board, as well as his predecessors, in supporting the institutional advancement of USCIB into what it is today. USCIB Chair Eric Loeb led a champagne toast to Robinson in honor of his service. 

“Leading the work of USCIB has been a fulfilling and exciting career for me,” said Robinson in his remarks to the Board. “It has been a real privilege to work and form relationships with such a diverse and dedicated group of people over the years including staff colleagues, members and partners in our Global Affiliates. I am proud of what we have accomplished together for the benefit of our members, for business, and for society at large.” 

While a new President and CEO of USCIB is yet to be announced, Robinson did emphasize that looking forward, USCIB will need to continue to drive home the importance of “upstream” work in positioning business at the table with multilateral institutions to influence the international business landscape and to support USCIB’s Global Affiliates—ICC, Business at OECD and IOE—in that effort. 

Robinson has been President and CEO of USCIB for 18 years and will be stepping down at the end of the summer.  

Robinson Joins BIAC’s London Consultation in Advance of 2023 OECD Ministerial Meeting

Published on May 25, 2023

USCIB President and CEO Peter Robinson joined Business at OECD (BIAC) Chair and USCIB Vice Chair Rick Johnston (Citi Group) in London for the annual BIAC/TUAC (Trade Union Advisory Committee) and OECD consultation with the Chair government of the OECD Ministerial—this year being the UK government. The consultation, aimed at preparing for the 2023 OECD Ministerial meeting, was held at the Foreign, Commonwealth & Development Office (Whitehall).

Hanni Rosenbaum (Business at OECD) and Peter Robinson (USCIB)

The high-level BIAC and TUAC delegations, representing OECD’s key institutional stakeholders, met with the OECD Ministerial Council Bureau and leadership, including UK Minister of State for Indo-Pacific the Rt. Hon. Anne-Marie Trevelyan and OECD Secretary General Mathias Cormann. This session provided a critical opportunity to provide targeted input to the Ministerial agenda, share business priorities and help guide expected key deliverables.

The annual OECD Ministerial will take place on June 7-8 in Paris under the theme “Securing a Resilient Future: Shared Values and Global Partnerships.” The Ministerial will convene Ministers of Economy, Foreign Affairs and Trade from OECD countries and beyond.

Robinson with ICC UK and ICC Germany Secretary Generals

While in London, Robinson met separately with ICC UK Secretary General Chris Southworth and staff, together with ICC Germany Secretary General Oliver Wieck, who was also in town. The three ICC National Committee heads discussed ICC activities and priorities, including the Digital Standards Initiative.

USCIB Joins Global Business Effort on EUCS Without Sovereignty Requirements

Published on May 25, 2023

Washington DC, May 25, 2023—The United States Council for International Business (USCIB) has joined forces with businesses based in the European Union, the United Kingdom and Japan to issue a statement urging swift and timely adoption of the “EU Cybersecurity Certification Scheme for Cloud Services (EUCS)” without sovereignty requirements. This effort was organized by AMCHAM EU.

Additionally, CCIA, a USCIB member, also issued a similar statement co-signed by the U.S. business community, including USCIB, and shared with U.S. Secretary of State Antony Blinken, Trade Representative Katherine Tai and Secretary of Commerce Gina Raimondo, in advance of the EU-U.S. Trade and Technology Council (TTC) meeting taking place in Sweden this weekend.

USCIB recognizes its members’ acute concerns that the EUCS unfairly undermines U.S. competitiveness in Europe.

According to USCIB, such restrictive sovereignty restrictions do not add value to cybersecurity of cloud services in the EU. For well over a year, many European and international associations, industry actors and Member States have continued to publicly express their concerns with the lack of progress and the ongoing examination of restrictive sovereignty requirements in the EUCS. In addition, several Member States have proposed alternative options to end the stalemate, such as a European evaluation mechanism based on trustworthiness for non-EU cloud providers. Discussion on these proposals could offer a robust alternative that would meet the desired high level of cybersecurity requirements, while keeping the market open to all cloud providers.

The CCIA letter states that the business groups have called for removing discriminatory ownership requirements that would prevent American cloud service providers from bidding on public sector and critical infrastructure cloud contracts across Europe.

Other industry concerns about the EUCS include its limited transparency and lack of stakeholder engagement, conflicting views of Member States and legal confusion and uncertainty caused by the interplay with other EU legislation.

Click here to read the AMCHAM EU letter.

Click here to read the CCIA letter to U.S. Government.

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.

 

Clark Moderates WITA Panel on Carbon Border Adjustment Mechanisms

Published on May 17, 2023
Top row, L-R: Alice Slayton Clark, Ken Ash, Mark Linscott
Second Row, L-R: Catrina Rorke, Ken Levinson, Ludivine Tamiotti

USCIB Vice President for International Investment and Trade Alice Slayton Clark moderated a Washington International Trade Association (WITA) webinar May 5 on Finding Synergies on Carbon Border Adjustment Mechanisms (CBAM). The goal was to review the various international workstreams on carbon mitigation, discuss their synergies and explore how they can achieve climate solutions without disrupting trade.

The panel included experts with extensive knowledge in the field, including Ludivine Tamiotti, secretary to the Committee on Trade and Environment at the WTO, Mark Linscott, senior fellow at the Atlantic Council, senior advisor at the Asia Group and former assistant USTR for WTO and Multilateral Affairs, Ken Ash, visiting fellow, Institute for International Trade, Adelaide and former Director of Trade and Agriculture at the OECD, and Catrina Rorke, executive director, Center for Climate and Trade and senior vice president for Policy and Research, Climate Leadership Council.

“With so many international organizations like the OECD, WTO and United Nations, and various government or government entities, such as the G7 and EU, exploring ways to reduce the global carbon footprint, we thought it would be helpful to industry and other stakeholders for this WITA panel to sort it all out,” said Clark in her opening remarks. “A priority for industry is cohesiveness of these efforts.  We are looking for consistency in carbon measurement methodologies and interoperability of carbon mitigation approaches in order to avoid duplicative efforts and potential trade disruptions.”

A collaboration between USCIB, WITA and the Silverado Policy Accelerator sponsors, the webinar drew an audience of nearly 200 participants from 15 countries including Argentina, Belgium, Canada, France, the UK, Spain, Turkey, China, Ireland, Italy, Japan, Korea, Mexico, Switzerland and the U.S.

Click here to watch the webinar.