Accented Stories Archives

Congress Sends Revised “CFIUS” Foreign Investment Rules to President for Signature

Published on August 7, 2018

USCIB was very pleased to see both houses of Congress adopt (the House on July 25 and Senate a week later on August 1) as part of the compromise Conference Report on the overall 2019 “John McCain” National Defense Authorization Act (“NDAA”), some fundamental long-gestating revisions to the Committee on Foreign Investment in the U.S. (“CFIUS”) process for U.S. Government review of foreign direct investment (FDI) into the U.S.

Over the last year, Congress, the Administration and key stakeholders, including USCIB and the broad U.S. and international business communities, have been debating a wide range of potential major reforms to CFIUS.  Senator John Cornyn (R-TX) and Representative Robert Pittinger (R-NC) have taken the lead with their Foreign Investment Risk Review Mechanism (“FIRRMA”) bill but a wide range of possible revisions and reforms have been put on the table by various players on the Hill and beyond.

“Some of the proposed ‘reforms’, especially the idea that CFIUS should dramatically expand its remit to cover outward investment, joint ventures, licensing deals, and other innovative partnerships, were very troubling to us at USCIB and many member companies,” noted USCIB Vice President for Investment and Financial Services Shaun Donnelly. “USCIB and others in the business community raised fundamental objections to some of those more expansive proposals.”

In the end, according to Donnelly, the compromise “FIRRMA” provisions hammered out and included in the NDAA package seem a fair balance, strengthening CFIUS’s security overview of sensitive investment proposals, especially those in sensitive emerging technologies which also maintaining America’ commitment to open investment policies.

Donnelly endorsed the compromise FIRRMA provisions, stating, “We at USCIB commend the Congress and the Administration for the serious approach they’ve taken to these important investment security issues. We especially appreciate that the Treasury Department, other agencies, and many players in the Congress have all been open to a real substantive dialogue with business and other stakeholders on fundamental issues on investment security and business practices. We think they got the balance about right in the final compromise package, which is not easy.”

USCIB Gathers Stakeholders to Discuss E-Commerce Framework

Published on August 7, 2018

On July 31 and August 1, USCIB teamed up with the U.S. Chamber of Commerce to host the second in a series of meetings tied to e-commerce and the work being undertaken by the World Customs Organization (WCO). Dubbed “Industry Days,” these meetings included robust participation from both private sector and public sector representatives from multiple U.S. government agencies aimed at continuing the established dialogue on the WCO’s E-Commerce Framework of Standards (FoS).  Last week’s meetings were conducted in a small group fashion, which were stakeholder specific (i.e., carriers, customs brokers, e-payment, marketplaces and vendors).

Per the WCO, “The Framework of Standards is intended for Customs administrations wishing to develop legislative and operational frameworks for cross-border e-commerce.” In June, the WCO Council endorsed the draft FoS that included an introduction, 15 Standards and related introductions, as well as a U.S. tabled Resolution. In addition, the Council approved a one-year extension of the E-Commerce Working Group as well as a draft Work Plan noting the need for flexibility with respect to timelines and adherence. The next meeting of the WCO’s E-Commerce Working Group will take place in October.

Currently, the U.S. government and other WCO Member administrations are working to develop and  provide inputs on such intersessional topics as Definitions, Work Plan, and Data Elements. These “Industry Day” meetings are critical to the development of the U.S. government – one government – position, and provide the opportunity for private sector stakeholders to advance general and specific comments and concerns regarding aspects of the FoS, topic specific questions (e.g., Flow Charts, Data and Data Privacy, risks, etc.,) as well as overall views related to e-commerce.

“The purpose of these meetings was to bring together relevant intermediaries to discuss and gather perspectives in efforts to assist in USG policy and position development,” said Megan Giblin who leads USCIB’s work on customs and trade facilitation.  “Overall the meetings were successful and brought together USG agencies including: Department of Homeland Security, Customs and Border Protection, Office of the U.S. Trade Representative, U.S. Department of Treasury, Department of Energy, Department of State, U.S. Postal Service, Federal Trade Commission as well as many private sector stakeholders including many who are new to the WCO E-Commerce Framework of Standards.”

USCIB Urges G20 to Get More Active Combating International Bribery

Published on August 7, 2018

USCIB has joined with other major U.S. business associations as well as the AFL-CIO labor federation and the Coalition for Integrity, a leading anti-corruption NGO, to send a joint letter to President Trump requesting that the Administration take major steps this year to combat international bribery and corruption.

The group recommends a particular focus on the G20, the largest economies and major competitors and partners, with a view to getting those G20 members which are not yet signatories to the OECD Anti-Bribery Convention become signatories and full partners to that convention by the end of 2018.  China, India, Saudi Arabia, and Indonesia are key G20 members falling into that category.

“Our letter also recommends that the Administration should step up its efforts to ensure vigorous and consistent enforcement of foreign bribery laws as well as its OECD convention obligations by all G20 member nations,” said USCIB Vice President for Investment and Financial Services Shaun Donnelly. “International bribery is not only morally wrong, it is also an attack on the U.S. economy, our companies and workers following the highest standards of integrity. When foreign competitors use bribery and corruption to win business away from American companies and workers, that is a direct hit at our economy and is unacceptable. We look forward to working with our partners in this initiative and key U.S. Government agencies in the lead-up to the G20 senior meetings later this year to advance the battle against international bribery and corruption.”

USCIB Joins ICC in Celebrating Anniversary of NY Convention

Published on July 31, 2018
USCIB General Counsel Nancy Thevenin

New York’s international arbitration community recently celebrated the 60th anniversary of the New York Convention, which provides a universal basis for enforcement of arbitration agreements and awards is a source of particular pride to the International Chamber of Commerce (ICC), which initiated the drafting process that led to the Convention’s adoption by the United Nations in 1958. 

USCIB General Counsel Nancy Thevenin, who is also the Immediate Past Chair of the New York State Bar Association International Section and George Bermann Professor at Columbia Law School, helped organize the reception and noted in her remarks, “There is an elegance to the fact that this sparely worded document has been one of the mightiest tools employed by the international business community to foster trade and investment worldwide.”

The Convention, and the many complementary UNCITRAL projects, demonstrate the abiding importance of state cooperation to promote efficient, effective and equitable resolution of commercial and investment disputes.

For more information on this event, please visit ICC’s website.

Registration Open for USCIB’s Engaging Business Forum

Published on July 31, 2018

USCIB, the International Organization of Employers (IOE) and the U.S. Chamber of Commerce will be sponsoring the 10th Engaging Business Forum, hosted by The Coca-Cola Company. The Forum will take place on September 13-14, in Atlanta, GA.

This year’s Forum will focus on collaboration through partnerships to address business and human rights trends and developments. Panels will discuss what works/doesn’t work in partnerships, access to remedy, human rights defenders, supply chains, among other topics. Speakers include Guy Ryder, Phil Bloomer, Anita Ramasastry, John Morrison and many more. In addition to hearing from our speakers, there will also be opportunities for networking and peer-to-peer learning roundtables. The full agenda can be found here.

If you would like to participate, please register here. Space is limited, so registration will be on a first-come first-serve basis. If you have any questions, please reach out to Elizabeth Kim (ekim@uscib.org).

US and Japan Commit to Open, Reliable and Secure Internet

Published on July 31, 2018

At a recent policy cooperation dialogue on the internet economy between the United States and Japan, the two nations emphasized their continued commitment to an open, interoperable, reliable, and secure Internet. This dialogue served as the ninth meeting of the U.S.-Japan with regards to the internet economy and took place in Washington, DC, on July 23 and 24. The dialogue included discussions with private sector representatives from both countries on fifth generation mobile technologies (5G) and secure future Internet infrastructure, promoting cross-border data flows, international harmonization of regulatory frameworks and privacy, as well as ICT policy issues related to trending technologies such as artificial intelligence (AI) and the Internet of Things (IoT).

USCIB Vice President for ICT Policy Barbara Wanner spoke on a panel on the Prospect for Future Internet Policy Issues, alongside representatives from the Information Technology Industry Council, the U.S. Chamber of Commerce and Access Partnership. “U.S. and Japanese business and government have much in common with respect to opportunities and challenges in the digital economy, so collaborative approaches are very important going forward to ensure that we all reap the extraordinary economic, commercial, and societal benefits,” said Wanner.

Wanner also emphasized the need to work together in multilateral organizations and multistakeholder organizations especially in light of several countries continuing to press for government regulation of the internet by bringing Internet governance and digital economy issues under the UN or its specialized agencies. “This is not the best approach given the dynamic nature of technology development,” warned Wanner. “Heavy-handed regulations could damper this dynamism. Additionally this may open the door to efforts by some countries to use the Internet for surveillance of their citizens and possibly even censorship.”

USCIB Warns More Tariffs Will Harm US Companies, Consumers

Published on July 31, 2018

In the continuing battle of tit-for-tat tariffs between the United States and China, USCIB submitted comments to the U.S. Trade Representative (USTR) on July 23 regarding the proposed 25 percent tariffs on $16 billion worth of Chinese imports. This list of goods followed the first consultation on proposed 25% tariffs on $50 billion worth of Chinese imports, which resulted in the imposition of tariffs on $34 billion on July 6, 2018.

“Tariffs are a blunt tool with many unintended consequences on U.S. businesses,” said Eva Hampl who leads USCIB’s work on China. “They will significantly impact U.S. companies’ ability to export and create important jobs in the United States. They will also negatively impact U.S. customers, increasing competitiveness in the United States for foreign competitors. The Administration’s proposed tariff list was drawn up without significant input from the U.S. business or manufacturing community. The public comment process is the principal means to solicit information from U.S. businesses. Therefore, the Administration must use this process to ensure that its actions in this China 301 process do not inadvertently harm some of the most competitive sectors of the U.S. economy, and the hundreds of thousands of American jobs that depend on them. Tariffs should only be used as leverage toward a negotiated outcome and should not be imposed while negotiations are ongoing.”

USCIB’s comments also applauded the Administration for looking at alternative approaches, such as initiating a World Trade Organization (WTO) dispute by requesting consultations with the Chinese government regarding certain specific aspects of China’s technology regulations considered in the investigation. “In addition to engaging the WTO process, this should include developing a strategy with clearly defined objectives, direct negotiating mechanism with the Chinese, targeted deliverables, and deadlines with measurable results,” added Hampl. “The Administration should also coordinate in various available forums with like-minded trading partners who are similarly afflicted by China’s actions on intellectual property rights, forced technology transfer, and discriminatory industrial policies.”

USCIB’s comments to USTR were supplemented by a separate multi-association letter on $16 billion worth of tariffs. USCIB will also put together comments on the $200 billion list of proposed additional 10% tariffs on Chinese imports.

USCIB, ILO Director General Discuss Role of Business

Published on July 25, 2018
L-R: Laura Rubbo (Walt Disney Company), Guy Ryder (ILO), Peter Robinson (USCIB), Kevin Cassidy (ILO), Gabriella Rigg Herzog (USCIB)

As the International Labor Organization (ILO) gears up to celebrate its centennial in 2019, ILO Director General Guy Ryder met with USCIB and 20 of its company members in Washington DC on July 20 to discuss issues of mutual interest and concern. Topics covered included areas of mutual business including the ILO’s centenary in 2019, the “Future of Work,” the role of governments, the role of business at the ILO, and the work of the standard-setting committee on violence and harassment at the International Labor Conference.

For the centenary, USCIB will seek to organize a business-focused event in 2019, and also participate in an ILO event to celebrate the Philadelphia declaration. Members highlighted that they see the Future of Work, which is the theme of the ILO’s centenary celebration, as a positive opportunity to highlight the impactful role that government education and employment policies, as well as business initiatives to offer apprenticeship and training opportunities, can have to prepare workers for the jobs of the information economy and beyond. 

USCIB and its members also stressed the fundamental role governments must play in writing laws that meet international standards and effectively enforcing them, and they stressed the importance of ILO’s continued focus on helping governments carry out those core functions. Business also recommended that the ILO could helpfully prioritize providing support for governments and other tripartite partners with essential job creation, skills, employment and other relevant topics. 

USCIB also spoke very clearly about the issue of violence and harassment at work and emphasized U.S. employer commitment to this topic. USCIB Vice President for Corporate Responsibility and Labor Affairs Gabriella Rigg Herzog stated that the topic is right, the time is now – especially in light of the #metoo movement, and the Employers’ hope and expectation is that the ILO is the right institution to push this issue forward. Herzog underscored that Director General Ryder and the ILO Office can provide needed support for the tripartite constituents to help reach an agreed text that provides clear and practical definitions for both public and private sector employers so they can understand their responsibilities and so that governments can be attracted to take the next step and ratify the ILO instrument. An ILO instrument that sits on the shelf that no government ratifies will not have any impact on the ground in counties where guidance and change is needed – most especially on this critical issue of addressing violence and harassment in the workplace.

As the U.S. affiliate to the International Organization of Employers (IOE), USCIB represents U.S. employers at the ILO and provides key input to the governance and policy setting activities. 

In BBC Interview, Mulligan Shares Thoughts on G20 Meeting

Published on July 24, 2018
Rob Mulligan, USCIB

G20 Finance Ministers gathered in Argentina over the weekend to raise concerns over growing tensions between the United States and its major trading partners. Following the meetings, BBC’s Aaron Heslehurst spoke with USCIB Senior Vice President for Policy and Government Affairs Rob Mulligan as part of BBC’s Talking Business segment regarding international trade tensions that may undermine the global economy and stunt growth.

Mulligan expressed concern that continued escalation of tariffs may cause all kinds of problems for USCIB member companies. “Tariffs will lead to higher costs, drive higher prices for consumers and, we think, in the end, can start driving job losses,” warned Mulligan. “In fact, we’ve seen estimates for the existing tariffs related to steel and aluminum that can cause job losses in the United States of up to 140,000 jobs.”

Specifically, on U.S.-China tensions, Mulligan noted, “there are issues with China’s unfair trade practices that need to be addressed and we fully support an effort that would bring together all our allies to make that point with China, but we’re not sure that raising tariffs the way the President has threatened, even threating to impose tariffs on all 500 million of China’s exports to the United States, is going to be the way to solve that problem.”

To hear the entire interview, click here.

World Youth Skills Day Focuses on Innovation, Emerging Technologies

Published on July 23, 2018

On the margins of the High-Level Political Forum at the United Nations July 9-18, the International Labor Organization (ILO), in partnership with UNESCO, the Office of the Secretary-General’s Envoy on Youth, the UN Permanent Missions of Sri Lanka and Portugal, hosted an event on July 16 titled “World Youth Skills Day 2018: Sustainability and Innovation.”

The ILO estimates that in 2017, 70.9 million young people were unemployed, and in 2018, while the rate will remain stable, more young people will enter the work force. Currently, technological innovations are quickly transforming industries and skills demands, potentially creating a talent gap in the future. Therefore, it is imperative for education and skills development systems to equip youth with the right education and skills to face these changes, while supporting a sustainable future and the transition to a green economy. Given this, the event aimed to bring together member states, UN agencies, the private sector and civil society, among others, to discuss how to leverage innovation and emerging technologies to increase youth employment, and the implications for skills needs and development.

President of the UN General Assembly Ambassador Miroslav Lajčák, gave the keynote speech, and other high-level speakers included ILO Director-General Guy Ryder and Secretary-General’s Envoy on Youth Jayathma Wickramanayake, as well as the Permanent Representatives to the UN from Sri Lanka and Portugal.

USCIB Vice President of Corporate Responsibility and Labor Affairs Gabriella Rigg Herzog participated on the all-female interactive panel that followed the keynotes, and she underscored the key role of government education and labor market policies, as well as the contributions that companies and employer organizations can make to support skills acquisition, including digital, among youth.

“Close and regular dialogue between governments, business and civil society – and especially youth – is critical to our shared goal of closing the gap between the training being taught in schools and the skills needed for jobs of the future,” said Rigg Herzog. “While focusing on the technical and STEM skills is fundamental, we must not lose sight of critical soft skills like creativity and critical thinking, which are also keys to successful integration into the workplace. Companies and government education systems would also be wise to ensure effective inclusion of women and girls, given that they are 50% of the global workforce and  thus a human resource asset to be valued.”