Accented Stories Archives

USCIB Urges Removal of Steel and Aluminum Tariffs in USMCA

Published on January 23, 2019

USCIB joined a coalition of other trade and industry organizations to send a letter to Secretary Wilbur Ross and Ambassador Robert Lighthizer on January 23 regarding the 232 tariffs on steel and aluminum.

“The coalition, recognizing the importance of the new U.S.-Mexico-Canada Agreement ratification to the economic interests of all three countries, underscored the importance of lifting these tariffs, as well as the removal of all retaliatory tariffs on trade among the three countries,” stated Eva Hampl, senior director for investment, trade and financial services.

“For many farmers, ranchers and manufacturers, the damage from the reciprocal trade actions in the steel dispute far outweighs any benefit that may accrue to them from the USMCA,” stated the letter. “The continued application of metal tariffs means ongoing economic hardship for U.S. companies that depend on imported steel and aluminum, but that are not exempted from these tariffs. Producers of agricultural and manufactured products that are highly dependent on the Canadian and Mexican markets are also suffering serious financial losses.”

Application of ATA Carnet System Expands in China

Published on January 23, 2019

New York, N.Y., January 23, 2019 – China has significantly expanded its use of ATA Carnets for the temporary, duty-free importation of various types of goods. As of January 9, the country is now accepting the widely used “merchandise passports” for professional equipment and product samples, according to the United States Council for International Business (USCIB), which administers the ATA system in the United States.

Previously the country honored ATA Carnets just for goods destined for trade shows and exhibitions. China also extended the period for which goods may be brought into the country under ATA Carnets to a full year, from six months as had previously been the case.

“We expect China’s decision to accept Carnets for the full range of uses to significantly expand American exports to the country,” said USCIB President and CEO Peter Robinson. “Carnet usage is often a leading indicator of future exports, and this move will make the process of getting goods to and from the country much smoother.”

ATA Carnets are internationally recognized customs documents that allow for the temporary importation of various types of goods, duty-free and tax-free, generally for up to one year. They are used by a wide variety of exporters and businesses as a simple, cost-effective means of moving goods temporarily to 78 countries and customs territories around the world. Additional information on developments related to the use of ATA Carnets in China is available on USCIB’s website here.

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. 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:
The United States Council for International Business (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, generating $5 trillion in annual revenues and employing over 11 million people worldwide.

As the U.S. affiliate of several leading international business organizations, including ICC, USCIB provides business views to policy makers and regulatory authorities worldwide. USCIB also works to facilitate international trade and investment. It is the U.S. national guaranteeing association for ATA Carnets, which enable the temporary export of many types of goods, free of import duties or taxes, for up to one year.

Robinson Contributes to OECD’s Going Digital Work in Paris

Published on January 23, 2019
USCIB President and CEO Peter Robinson (left) with OECD Secretary General Angel Gurria

USCIB CEO and President Peter Robinson was in Paris January 15 as part of the business delegation at the annual Business at OECD Liaison Committee Meeting (LCM) consultation with OECD Ministers. The focus of this meeting was on the OECD’s “Going Digital” work and titled “Expanding Digital Opportunities: Agreeing Priority Actions”. Robinson served as a moderator of one of three concurrent panels composed of business leaders, OECD Ambassadors and OECD staff.

Robinson’s session was “Future Proofing to ensure broader societal success” and engendered discussion around two questions: What approaches best enable dynamic policy-making, and where are they most needed? And what does good multi-stakeholder collaboration look like in this context?

“I see the latter being a big component of the former and was able to point to OECD’s general leadership in multi-stakeholder engagement, which has been setting an example at a time when some other international organizations seem to be not as open to business involvement,” reflected Robinson.

“The ambassadors on my panel seemed to truly appreciate the opportunity to dialogue with business in this way, and their contributions consisted of a mix of reactions to Business at OECD’s position paper and examples of initiatives in their own countries—including from Italy, Japan, and Latvia—reflecting multi-stakeholder engagement in the digital age.”

OECD Secretary General Angel Gurria and Business at OECD Chair Phil O’Reily circulated among the panels and shared leadership of the plenary sessions. Business at OECD Secretary General Russell Mills also served as a moderator, as did Julie Brill, Microsoft Corporate vice president and deputy general counsel, who chairs the Business at OECD Committee on Digital Economy Policy. USCIB Board member and Business at OECD Vice Chair Rick Johnston was also on hand, as were other USCIB member executives from firms including IBM, Cooley LLP, Google and PwC.

OECD will hold its “Going Digital” Summit March 11-12 in Paris. The USCIB/BIAC/OECD “Going Digital: OECD Insights for a Changing World” will be held on March 25-26 in Washington, D.C. The annual OECD Ministerial will be held May 22-23 in Paris, at which Digital will figure centrally.

 

USCIB Submits Negotiating Objectives for US-UK Trade Agreement

Published on January 22, 2019

Given a recent request for comments by the United States Trade Representative (USTR), USCIB submitted negotiating objectives for a U.S.-UK Trade Agreement on January 16. USCIB believes that continued U.S.-UK free trade is overwhelmingly in the interests of both countries and their global trading partners, provided that the agreement is a high standard and comprehensive bilateral trade and investment agreement. The UK is an important trade partner for the United States, currently being the seventh largest goods trading partner of the United States. U.S. goods and services trade with the UK totaled an estimated $231.9 billion in 2017, with exports totaling $123 billion.

“USCIB’s submission is based on the assumption that the UK will be successful in exiting the EU by March 29, 2019, allowing for the ability to negotiate trade agreements with trade partners outside of the EU,” said Eva Hampl, senior director for investment, trade and financial services. “With that in mind, priority issues for negotiations of a U.S-UK Trade Agreement raised in our submission include digital trade (including cross border data flows, forced localization, cybersecurity and digital taxation), intellectual property, media and entertainment services, financial services, electronic payment services, customs and trade facilitation, express delivery services, regulatory cohesion, investment, government procurement, and chemicals.”

The submission also emphasized the importance of improved regulatory cohesion across the United States, the UK, and the European market, which would likely be among the greatest gains from a future trade agreement between the United States and the UK.

“The objective of such improved regulatory cohesion is to facilitate trade in a way that ensures the existing market remains intact,” added Hampl. “It should thus be a key component in furtherance of the liberalizing trade objective that is driving the U.S.-UK trade relationship.”

USCIB’s submission also recalled its support of a comprehensive, high-standard Transatlantic Trade and Investment agreement, eliminating of tariff and no-tariff barriers on goods and services trade, including between the United States and the UK. The range of issues that were on the table at the time, ranging from strong investment protections, to increased trade facilitation, and regulatory coherence, continue to be of great importance to USCIB members.

USCIB will also provide testimony at the public hearing scheduled to take place on January 29, 2019 before the Trade Policy Staff Committee (TPSC) at the United States International Trade Commission.

USCIB Mourns Passing of John Merow, USCIB Corporate Secretary and Longtime Supporter, and His Wife

Published on January 18, 2019
John Merow

USCIB members and staff were saddened by the deaths of John Merow, 89, a longtime champion of our work, and his wife Mary Alyce, 85. The couple died on January 12 in a fire at their home in New York City.

Merow, the former chairman of law firm member Sullivan & Cromwell, served as a USCIB board member and corporate secretary for many years. He also served on the board of The USCIB Foundation.

“We are shocked and saddened by the sudden and tragic deaths of John and his beloved Mary Alyce, and we will greatly miss them,” said USCIB President and CEO Peter M. Robinson.

“John was a mentor to me and a guiding spirit to USCIB. In whatever position, he never hesitated to roll up his sleeves and provide solid legal guidance. He was a supporter, champion and friend of the organization and its staff, and was at a meeting in our office the day before he died – showing up, as usual, 15 minutes early.”

Merow led Sullivan & Cromwell through a challenging time of international expansion that included the opening of offices in Australia and Japan. In a statement on his passing, the firm called him “an exemplar of diversity and inclusion, always focused on what truly mattered – an individual’s merits and character. We continue to be inspired by his vision of excellence and inclusiveness.”

Sullivan & Cromwell Senior Chairman Rodgin Cohen, a USCIB trustee, described John as among the “extraordinarily skillful lawyers who thought about the law as a noble calling, and not just as a business or a profession.”

In addition to his volunteer service with USCIB, Merow was a trustee and vice chairman of the New York-Presbyterian Healthcare system. He was a longtime member of the Council on Foreign Relations and a member of the board of the Municipal Art Society of New York. Merow also served for years as senior warden of Saint Thomas Church Fifth Avenue, chairman of the American Australian Association, a director of the Metropolitan Opera Club, the Foreign Policy Association and the Archbishop of Canterbury’s Anglican Communion Fund.

“We will remain forever inspired by John’s positive spirit, generosity, kindness, loyalty, business judgment and sense of humor,” Robinson continued. “He made a mark on our organization and on our lives. Our deep condolences to his family.”

Services for John and Mary Alyce Merow will be held on January 23 at Saint Thomas Episcopal Church, 1 West 53rd Street in New York City. In lieu of flowers, donations may be made to the Council on Foreign Relations and Learning Ally (formerly known as Recording for the Blind).

New Video Highlights USCIB’s Value Add

Published on January 15, 2019

USCIB has launched a new video highlighting the organization’s policy expertise, close working relationship with decision makers and links to key international business organizations. The video features many of USCIB’s policy experts including USCIB President and CEO Peter Robinson, USCIB Vice President for Product Policy and Innovation Mike Michener, USCIB Senior Director for Trade and Financial Services Eva Hampl, USCIB Vice President for Strategic International Engagement, Energy and Environment Norine Kennedy and USCIB Vice President for Corporate Responsibility and Labor Affairs Gabriella Rigg Herzog. (See video below.)

The video was presented at USCIB’s 2018 International Leadership Award Gala, which honored Unilever CEO Paul Polman.

USCIB Voices China Tariffs Concerns in Coalition Letter

Published on January 14, 2019

USCIB, as member of the Americans for Free Trade Coalition, signed a letter to Capitol Hill welcoming the 116th Congress and urging congressional members to consider the costs of the trade war on their home districts and states and to exercise their oversight role in trade policy matters. The Coalition is comprised of approximately 150 organizations representing U.S. manufacturers, farmers, retailers and consumers.

“The 116th Congress is beginning during a period of unprecedented economic growth and job creation, yet continued prosperity is not a foregone conclusion. We share the broadly-held concern about the impact to the U.S. economy of the Section 301 tariffs on imports from China, Section 232 tariffs on steel and aluminum imports and corresponding retaliation against U.S. exports,” the Coalition stated in the letter.

The letter emphasized that Americans have built global supply chains that reflect the U.S. economy’s strengths and those of its trading partners. These supply chains have made the U.S. economy even more dependent upon relationships with key economic and strategic allies than ever before.

“The strength of the U.S. is economy relies on these very complex supply chains, which cannot simply be shifted overnight,” said Eva Hampl, who leads USCIB’s work on China. “These sweeping tariffs are purposefully causing a disruption, negatively impacting the U.S. economy.”

 

US Tax Reform One Year Later

Published on January 14, 2019

Carol Doran Klein, USCIB vice president and international tax counsel, was featured in a new report by Freshfields Bruckhaus Deringer LLP “Four Big Questions on U.S. Tax Reforms,” which assesses the implications of the Tax Cuts and Jobs Act.

Doran Klein weighed in by providing her perspective on the future of BEAT (Base-Erosion and Anti-Abuse Tax), an anti-avoidance measure that targets multinational groups with a significant U.S. presence, effectively applying a 10 percent minimum tax for taxable income adjusted for certain types of payments made by U.S. corporations to related non-U.S. corporations.

In her interview for the report, Doran Klein noted that the BEAT does not respect the arm’s length standard for transfer pricing, which is the internationally accepted principle in the OECD Model Tax Convention (the guidance underpinning the bilateral tax treaties of OECD members), or advance pricing agreements (APAs).

“One might argue that BEAT would violate existing principles because it doesn’t matter whether you have an APA or whether the payment is otherwise considered to be arm’s length, BEAT would effectively disallow a share of the deduction,” said Doran Klein. “However, the U.S. government could argue that it’s no longer clear whether the international accepted standard should take into account the arm’s length nature of the payments because Action 4 of the BEPS Action Plan concerning limitations on the deductibility of interest payments doesn’t actually rely on the arm’s length principle.”

 

USCIB Issues Recommendations for WTO Modernization

Published on January 14, 2019

As World Trade Organization (WTO) member governments move forward this year with efforts to reform the WTO, USCIB issued recommendations on how business can support the WTO and its efforts to improve the organization.  USCIB’s recommendations also noted the importance of the WTO as a cornerstone of the global rules-based trading system that has helped spread growth and development for decades.

USCIB recommendations focused on addressing subsidies and other market-distorting support provided to state-owned enterprises (SOEs), the establishment of new rules for current issues such as digital trade and customs processes on electronic transmissions, and ensuring a properly functioning appellate body, among others.

“Our recommendations for modernizing the WTO should not in any way be read as questioning the business support for WTO,” said USCIB Senior Vice President Rob Mulligan. “Instead, they are intended to highlight areas for action that would strengthen the ability of the organization to more effectively meet the demands of a changing world as it deals with the rapid evolution of technology that can quickly reshape the way companies do business and operate globally. USCIB believes that effective WTO dispute settlement is a critical part of the global rules-based trading system.”

USCIB’s recommendations also urged Member States, as they continue to discuss modernization and improvements of the WTO and its underlying agreements, to be mindful that among the WTO Member States, private entities conduct the transactions that constitute trade and investment.

“The private sector has a direct stake in the rules that will be the outcome of the government-to-government discussions and, accordingly, private sector comments and recommendations should be actively solicited and given careful consideration by the Member States,” added Mulligan.

Donnelly Stresses Need for US Commercial Diplomacy

Published on January 9, 2019

The January-February edition of The Foreign Service Journal, which examines economic diplomacy from many angles—and from all over the world, included a piece from USCIB Vice President Shaun Donnelly, who is a former U.S. Ambassador. Donnelly’s piece “Secretary of State Mike Pompeo has made commercial diplomacy a foreign policy priority. Here’s how to get it right,” was co-authored with Daniel Crocker, a foreign commercial service vice president on the governing board of the American Foreign Service Association.

Donnelly and Crocker outline six critical elements in an effective U.S. economic/commercial diplomacy program, including that top leaders must be personally involved and that American business has a broad agenda in today’s and tomorrow’s global economy.

“As American companies compete to grow, prosper and win, they will need support from the government across a much wider agenda: services, regulatory coherence, license arrangements, international joint ventures, supply chain relationships, inward investment to the United States and outward investment by U.S companies to foreign markets,” Donnelly and Crocker note in the article. “A truly supportive, comprehensive “Team USG” approach to support our companies will have to be able to address that full range of issues.”

Three fundamental realities underline the importance for our country of an effective economic/commercial diplomacy program. First, more than 80 percent of global purchasing power now lies outside the United States, including several large emerging markets with annual gross domestic product (GDP) growth rates that are double our own, or more. Second, it’s an ultra-competitive world; in all key sectors, American companies face broader, deeper and more aggressive foreign competitors, some of whom promote their standards, military platforms and state-subsidized or state-owned companies for both commercial and political gain.