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Donnelly Emphasizes Importance of US-China BIT

Published on April 5, 2017

Donnelly_CSISWith President Trump set to meet Chinese President Xi Jinping at the Mar-a-Lago estate in Florida, bilateral commercial relations are high on the agenda. Against this backdrop, Shaun Donnelly, USCIB’s vice president for investment and financial services, wrote a blog post “Don’t Give Up on a Gold Standard US-China BIT!” in Investment Policy Central. Donnelly argues that abandoning a decade-long effort to negotiate a Bilateral Investment Treaty (BIT) with China would be a “serious mistake” for U.S. interests. The agreement, if done right, would be a “win-win” for both countries, with the U.S. gaining plenty from a good, comprehensive and high-standard agreement.

“A strong BIT, is in America’s broad interest, good for American companies, workers, investors, states and communities and for American values. The U.S. wins when Chinese companies invest in the U.S., hire American workers, pay American taxes, and follow American standards and rules. And we also win when great American companies can invest successfully in China, pulling U.S. exports and brands, and business practices into fast-growing markets,” wrote Donnelly.

To achieve a comprehensive agreement, Donnelly argues that the Trump administration should consult key stakeholders in business, labor and civil society, as well as take the time to carefully assess best options and pros and cons.

Donnelly has over 30 years’ experience with the U.S. Department of State in a wide range of roles including: Principal Deputy Assistant Secretary for Economic and Business Affairs; U.S. Ambassador to Sri Lanka; Deputy Assistant Secretary for International Trade; Deputy Chief of Mission at the U.S. Embassy in Tunisia; and a detail as Assistant U.S. Trade Representative for Europe and the Middle East.

Paris Meetings Urge Global Level Playing Field for SOEs

Published on April 3, 2017

SOE_PARIS_meeting_croppedThe Organization for Economic Cooperation and Development (OECD) held a meeting in Paris on Corporate Governance on March 28, which featured a special roundtable on flexibility and proportionality of corporate governance. Business at OECD (BIAC) attended the meeting and expressed strong support for the effective implementation of the G20/OECD Corporate Governance Principles. USCIB member Dan Konigsburg, managing director, corporate governance and public policy, Deloitte Touche Tohmatsu attended these meetings.

BIAC also provided input to discussions on state-owned enterprises (SOEs) earlier this month, highlighting the need for transparency and a global level playing field, and calling for good practices for anti-corruption and integrity in SOEs. USCIB contributed comments to BIAC’s advocacy effort, reflecting priorities that transparency, including on the governance structure and the precise nature of the advantages SOEs enjoy, is a crucial first step for ensuring a level playing field.

“SOEs have become increasingly active in the global market place, with the highest percentage of the world’s largest first effectively under state control in decades. Transparency alone, however does not automatically level the playing field, and should merely be considered the minimum requirement for any good faith effort for SOEs to compete in the global market,” said Eva Hampl, USCIB’s director for investment, trade and financial services.

Giblin Represents Business at World Customs Organization Meetings in Brussels

Published on April 3, 2017

Brussels

USCIB’s expert on customs Megan Giblin joined CompTIA’s Ken Montgomery as an authorized delegate of the International Chamber of Commerce (ICC) to the World Customs Organization’s (WCO) 59th Harmonized System Committee (HSC) in Brussels, Belgium from March 15 to 24. Montgomery served as ICC head of delegation at this meeting.

Per the WCO, some key HSC deliverables included settling classification questions and disputes, revising Explanatory Notes and classification opinions, securing speedy and uniform implementation of classification decisions and drafting recommendations.

The Committee took up a number of topics including the implementation of the HS2017, re-examined the classification of several products, took global classification decisions on many other products and held preliminary discussions on yet others. Classification decisions taken at this meeting are subject to a two-month reservation period under which any administration can request that the decision essentially be placed on hold and re-examined at a future HSC session. Decisions where no reservations have been filed, become final at the conclusion of the stipulated timeframe.

A key topic of discussion for both governments and industry relates to the current version of the HS Nomenclature. The WCO owns the HS Nomenclature, the language of international trade. Today, nearly 210 countries, territories or customs unions use the HS as the basis of their domestic customs tariff.

“The HS is important. It is not only used for customs classification, but it is used as the basis of market access negotiations for free trade agreements, flagging other government agency requirements, and more. Companies of all sizes depend on timely completion of domestic processes and full implementation of the current version of the HS to ensure necessary predictability for their products,” said Giblin.

While the HS2017 entered force January 1, 2017, there are still several countries that have yet to complete domestic legislative approvals or processes necessary for implementation.

Giblin will serve as ICC head of delegation at the fall HSC meeting.

 

Kazakhstan to Begin Accepting “Merchandise Passports”

Published on March 20, 2017

Baiterek TowerNew York, N.Y., March 21, 2017 – Kazakhstan is set to become the 77th member country to accept ATA Carnets for the temporary, duty-free importation of various types of goods, beginning April 1, according to the United States Council for International Business (USCIB), which administers the ATA system in the United States.

Known as “merchandise passports,” ATA Carnets are international customs documents that allow for the temporary importation of various types of goods, duty-free and tax-free, for up to one year. In most ATA member countries and territories, including Kazakhstan after April 1, Carnets cover import of professional equipment, commercial samples and items for display at exhibitions and fairs. The worldwide ATA Carnet system is overseen by the World Customs Organization and the International Chamber of Commerce (ICC), for which USCIB serves as the American national committee.

“The implementation of the ATA system demonstrates Kazakhstan’s commitment to promoting economic growth and trade facilitation,” stated USCIB President and CEO Peter M. Robinson. “Use of Carnets will make it easier for American and other foreign companies to do business with the country, while enabling Kazakhstan businesses easier access to the U.S. and global markets.”

The Republic of Kazakhstan is the ninth largest country in the world by area and is the world´s largest landlocked nation. ATA membership by the country – long regarded as a priority for other countries in the system – will significantly facilitate trade relations between Kazakhstan businesses and their foreign partners. The Chamber of International Commerce of Kazakhstan has been designated as the official guaranteeing organization for ATA Carnets in the country.

Prior to Kazakhstan, Brazil and Indonesia were the two most recent countries to join the global ATA Carnet system. More than 180,000 Carnets are issued every year worldwide, for goods with a total value of over US$21 billion. The United States is the third-largest user of ATA Carnets, following Germany and Switzerland. The Republic of Georgia is expected to join the ATA system in the near future.

Find out more about the services offered by USCIB to facilitate cross-border trade and investment at www.uscib.org.

Contact:
Jonathan Huneke, VP communications, USCIB
+1 212.703.5043 or jhuneke@uscib.org

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. With a unique global network encompassing leading international business organizations, including ICC, USCIB provides business views to policy makers and regulatory authorities worldwide, and works to facilitate international trade and investment.

UN Environment Assembly Focuses on Role of Business

Published on March 20, 2017
Kennedy at Nairobi UNEP Meetings
Kennedy representing the Business and Industry Major Group at UNEP meetings in Nairobi 

Norine Kennedy, USCIB’s expert on environment and climate change policy and one of two official business focal point representatives for the UN Environment Programme (UNEP), recently attended UN Environment Assembly (UNEA3) preparatory meetings in Nairobi (March 7-10). UNEA represents the world’s highest-level decision-making body on the environment with universal membership of all 193 UN Member States along with non-governmental organizations and the private sector. The meetings in Nairobi began discussions to develop a new framework of of pollution-related issues for potential decisions and pledges at UNEA3; a substantial element of this framework will be the role of business in causing, remediating and minimizing pollution. UNEA3 will take place from December 4-6 in Nairobi.

UNEA3’s theme will be, “Towards a Pollution Free Planet.”  In interventions during last week’s preliminary meetings, government and UNEP officials linked this broad topic with other policy concepts underpinning regulatory efforts, including the circular economy and sustainable consumption.   Several governments also emphasized connections with UN Sustainable Development Goals (SDGs).

“At this early stage, most attention seems to be directed at plastics in the marine environment, whether in the form of micro-plastics and smaller debris,  or as plastic bottles and plastic bags, with the push coming from Nordic countries, the EU and some African countries,” observed Kennedy. “Other issues under the other pollution sub-headings could still be proposed.

Led by UNEP Executive Director, Erik Solheim, and echoed by numerous government representatives, UNEA3 preparations for UNEA3 are placing a strong focus on business and industry as a source of solutions, resources, and actions, yet much needs to be done to afford adequate time and attention to contributions that business has made to addressing environmental challenges.  “In spite of extensive partnership and engagement by business with UNEP over decades, discussions last week frequently seemed to assume that business and industry was not already engaged in environmental and sustainability management,” noted Kennedy.   In her intervention on behalf of Business and Industry, Kennedy reminded governments and UNEP of the business community’s ongoing commitment to environmental stewardship and role in advancing innovative technologies to further all elements of sustainability.

Questions remain about how UNEP will identify and invite important business entities to the table, with an emphasis on geographical and sectoral representation, rather than anecdotal examples and individual CEOs.  USCIB will continue to advocate for U.S. business involvement and representation, working with UNEP and the U.S. Administration.

ICC Institute Advanced Training on the Conduct of the Proceedings and Case Management

Published on March 20, 2017

Registration is now open for the ICC Institute Advanced Training on the Conduct of the Proceedings and Case Management.

Location: San Francisco, CA

Description: This training is of an advanced level and will focus in depth on how the arbitrator should establish his or her authority over the parties throughout the proceedings, including hearings, and interact with his or her fellow-arbitrators. Attendees are supposed to already master the basics of ICC international commercial arbitration. The training will consist of presentations and interactive discussions using mock case scenarios designed to hone participants’ understanding of critical theoretical concepts while also emphasizing many practical aspects involved in conducting an international arbitration.

To register, please visit the registration website. Early Bird rate is available through March 31.

USCIB Experts Quoted in Journal of Commerce Articles on Trade

Published on March 20, 2017

container_shipUSCIB experts on trade and customs Rob Mulligan, senior vice president of policy and government affairs, and Megan Giblin, customs and trade facilitation director, were recently quoted in a Journal of Commerce article, “Trump administration unlikely to repudiate new WTO pact.” The article explores the state of bilateral and multinational trade agreements, such as the recent entry into force of the World Trade Organization’s (WTO) Trade Facilitation Agreement (TFA) and the future of the North American Free Trade Agreement.

JOC Special Correspondent Alan M Field wrote that despite the current administration’s aversion to multilateral agreements, it isn’t likely to repudiate the TFA. Field also quoted Mulligan’s views on this matter, “I don’t think that the administration has said much directly related to this agreement, but in some ways, I would expect that the provisions of this agreement are consistent with some of the things they have been saying about trying to open up borders and improve opportunities for U.S. business.”

Giblin agreed, stating that “it is important to recognize some of [the TFA’s] core messages. The TFA is critical to doing business, critical for companies. You’re going to get more transparency and predictability. The time-consuming processes at the border are going to be streamlined. You’re going to see goods moving more rapidly across the border. It’s expected to increase exports significantly.”

The full JOC story is available here, log-in required.

Giblin was also quoted extensively in a separate JOC story, “New WTO accord to speed customs clearance, cut costs” that takes a deeper dive into the TFA’s entry into force. Giblin was quoted on several aspects of the TFA, including the TFA’s value in allowing companies to understand quickly what the rules are and be able to export with assurance, “If everybody is providing the same level of transparency and ability [needed] to appeal decisions, then everyone will know how to operate,” she said. “That will lead to increased exports of products. And that will likely give a boost to the US economy and result in more jobs.”

The JOC story on TFA also quotes International Chamber of Commerce Chairman Sunil Bharti Mittal.

 

New ICC Arbitration Rules and Note

Published on March 20, 2017

International Law And Human Rights ConceptThe International Chamber of Commerce (ICC) International Court of Arbitration recently adopted new ICC Arbitration Rules and Note, which was approved by the Bureau of the Court on February 22 and went into effect earlier this month. The Note consolidates previously existing notes into one cohesive guidance document.

“The Note is an important step towards the implementation of our new policies to foster the efficiency and the transparency of ICC arbitrations. The possibility for any party to seek the provision of reasons for a wide range of Court decisions is a landmark change as well as a message of accountability to our users,” said President of the Court Alexis Mourre.

The Note also introduces a wide range of additional services that are now available to the parties in ICC cases, such as the recommendation of administrative secretaries, services for the organization of the hearing, the organization of transparent proceedings or the use of sealed offers.

Additional information on the Note can be found here.

USCIB in the News: Doran Klein at Pacific Rim Tax Conference

Published on March 13, 2017

USCIB’s vice president for international taxation policy Carol Doran Klein was recently quoted in a Bloomberg BNA piece “U.S. Will Remain Engaged in OECD Tax Work: IRS Official” regarding her comments during a panel in last week’s Seventh Annual Pacific Rim Tax Conference in Palo Alto, California. The two-day conference brought international tax policy and management issues to the forefront of corporate tax leaders and tax professionals, focusing on the Pacific Rim.

Doran Klein spoke on a panel titled “Challenges and Opportunities of BEPS,” alongside Theodore D. Setzer, assistant deputy commissioner (international), Internal Revenue Service. In her remarks, which were captured by BNA, Klein stated that “Companies are very concerned that the U.S. might move away from the multilateral framework. USCIB is encouraging U.S. officials to keep participating in the international tax work of organizations such as the OECD and the United Nations. Dialogue in not improved when your voice is not in the room.”

Doran Klein said Setzer’s remarks were “really important for my members.” She said companies were very concerned that the U.S. might move away from active participation in multilateral tax forums. USCIB would encourage U.S. officials to keep participating in the international tax work of organizations such as the OECD and the United Nations, Doran Klein added.

“Dialogue is not improved when your voice is not in the room,” she said.

Read the full Bloomberg Government piece here.

Donnelly Leads Business Push at OECD for FDI

Published on March 13, 2017

ShaunDonnelly_BIAC_OECD_InvestmentForumUSCIB’s Vice President for Investment and Financial Services Shaun Donnelly was leading the business voices at multiple events around the Organization for Economic Cooperation and Development’s (OECD) Investment Week in Paris last week. Donnelly was the lead business speaker at the panel on “Is Investment Liberalization Shifting into Reverse?” at the OECD Global Forum on International Investment and the lead business respondent to presentations by academic experts on “Societal Benefits and Costs of Investment Treaties” at the OECD’s Third Annual Conference on Investment Treaties.

In both formal presentations, as well as in formal and informal interactions with government delegations from both ‎OECD member countries and leading developing and emerging governments, Donnelly emphasized the importance of investment agreements, including strong enforcement provisions, to facilitate much needed Foreign Direct Investment (FDI) flows.

Per established OECD practice, Donnelly played a lead role in BIAC’s formal consultation, along with the parallel labor and civil society stakeholder groups, with the OECD’s Investment Committee on Wednesday, March 8.  With investment agreements under attacks from some quarters, it is important for business to speak up these sorts or international fora, whether at OECD or elsewhere, on the importance of FDI for both the host economy and the home country and especially on the important role high standard investment agreements and strong enforcement provisions play in today’s global economy.

Senior investment policy experts from the State Department, U.S. Trade Representative and Treasury Department also participated in the meetings last week.