Accented Stories Archives

Multilateral Effort Needed to Address Tax in Digital Economy

Published on October 2, 2017

In response to recent European Union proposals concerning taxation of the digital economy, Business at OECD (BIAC) expressed deep concerns that unilateral action for the taxation of the digital economy will lead to serious distortions in markets and global value chains.

“Business at OECD representing corporate communities across the globe is fully and constructively engaged in the OECD/G20 process to address Base Erosion and Profit Shifting (BEPS), including Action 1 on the digital economy”, confirmed Business at OECD Secretary General Bernhard Welschke. “We recognize there are important and complex issues concerning the digitalization of our economies. However, unilateral action in this field will lead to costly fragmentation and threatens to diminish the considerable potential for growth and innovation,” he added.

Welschke noted that only a comprehensive multilateral engagement between tax authorities, taxpayers and other stakeholders will lead to outcomes that support a successful digital transformation. “Therefore, the OECD is the most appropriate forum in which to pursue this engagement, and we encourage all countries to participate in this multilateral effort,” explained Welschke.

USCIB’s tax expert Carol Doran Klein also noted: “For business to flourish in the digital economy, tax rules must be implemented in a coherent and coordinated manner. USCIB worked actively through BIAC to shape the BEPS work toward this end. Fragmented rules are likely to result in double taxation and a negative impact on global trade and Investment.”

WTO Meetings in Geneva Set the Stage for Upcoming Ministerial

Published on October 2, 2017

As governments begin to prepare for the upcoming World Trade Organization (WTO) Ministerial (MC 11) in December, USCIB Senior Vice President Rob Mulligan traveled to Geneva last week for the WTO’s annual Public Forum, as well as related meetings organized by the International Chamber of Commerce (ICC).  Mulligan also met separately with a range of officials from the WTO, U.S. government, foreign governments and international organizations.

The issues mentioned most often in these meetings as having the potential for some type of action at the Ministerial included investment facilitation, fisheries subsidies, e-commerce, services facilitation and agriculture.  However, it also seems that each of these are facing challenges that could prevent a deliverable at MC 11.

Discussions during the Public Forum around the impact of trade often looked at the impact of technology and the need for better approaches to education and training, as well as more effective safety nets for those losing jobs. Additionally, some countries, including the United States, voiced the need for institutional reform at the WTO. According to Mulligan, it was suggested that business could play an important role in pressing for reforms.

“While the Ministerial may not produce a number of deliverables, business engagement will be needed to ensure that the WTO moves forward after the Ministerial on issues that address meaningful concerns with the global trading system,” said Mulligan. “This will be important to preserving the relevance and value of the WTO in opening global markets,” he added.

In addition to the Public Forum, ICC hosted a panel that highlighted the report they had sponsored in March with a range of ideas for the WTO to take up at the December Ministerial.  Panelists also discussed the importance of investment protections and cross-border data flows to business.  ICC noted that they will be working with the government of Argentina in organizing a Business Day in Buenos Aires on December 12 that will deliver recommendations to the WTO on future work.

This year’s WTO Ministerial will be hosted by Argentina.

UNGA Events Promote Gender Equality, Tackle Child Labor

Published on September 26, 2017

Last week’s UN General Assembly (UNGA) in New York featured dozens of side-events organized by civil society, business and governments tackling pressing issues facing humanity in the 21st century, such as human rights, climate change and sustainable development.

USCIB President and CEO Peter M Robinson, who also serves as regional vice president for North America for the International Organization of Employers (IOE), advocated on behalf of IOE during several employer-organized side-events, including the launch of the Equal Pay International Coalition (EPIC).

EPIC is a strategic multi-stakeholder partnership founded by the International Labor Organization (ILO), UN Women and the Organization for Economic Cooperation and Development (OECD) to assist UN Member States in achieving the UN Sustainable Development Goals (SDG’s), specifically those that promote gender equality and women’s empowerment.

Robinson spoke on a panel on “Drawing top talent for innovation and growth at leading businesses through equal pay policies”, alongside business leaders from IKEA, Accenture, Barclay’s, GAP and Catalyst. Robinson emphasized the compelling business and economic case for unleashing women’s skills and talents and empowering women to enjoy equal access to job opportunities and career advancement. Rather than increasing regulation and legislation, Robinson pointed out that solutions for closing gender parity gaps include a better understanding of the barriers behind such gaps, with cultural and legal barriers differing widely among countries.

“The IOE, with its global membership, is well positioned to help in this regard in both education and advocacy: it is able to share and leverage the experiences of its membership in providing practical services to members and in informing and advising governments and international organizations on policy actions,” said Robinson.

Robinson also represented employers at an Alliance 8.7 launch of the ILO’s Modern Slavery and Child Labor Global Estimates where he provided insight on the position of employers with regards to child labor and forced labor on the high-level panel, “Harnessing the numbers to accelerate eradication.” In his remarks, Robinson emphasized the continued dedication of employers to eradicate child labor and forced labor, noting the importance of collaboration between governments and the private sector, especially given the complexity of today’s global supply chains.

“While the primary responsibility lies with governments, as the crucial eradication factor, to establish and enforce national labor laws, business also has a desire and responsibility to do what it can to respect and follow those laws and looks forward to working with governments and other civil society actors in the shared fight to eliminate child and forced labor,” said Robinson.

The event was moderated by New York Times columnist Nicholas Kristoff. Australian Foreign Affairs Minister Julie Bishop set the stage for the meeting and a “Call to Action” was provided by UK Secretary of State for International Development Priti Patel. Other government leaders included Belgium Deputy Prime Minister Alexander de Croo, Argentina’s Deputy Secretary of Foreign Relations Gustavo Zlauvinen, the African Union’s Commissioner for Social Affairs Amira El Fadil and Deputy Undersecretary for International Affairs, U.S. Department of Labor, Martha Newton.

The new Modern Slavery Global Estimates encompass forced labor and forced marriage and it is the first time such research was conducted. The ILO and the Walk Free Foundation jointly published the new Modern Slavery Global Estimates. Additionally, the new Child Labor estimates will be an update to the Global Estimates on Child Labor published by the ILO in 2012.

USCIB Strengthens Business Voice at UNGA

Published on September 26, 2017

The high-level portion of the 72nd United Nations General Assembly (UNGA) wrapped up last week in New York, attended by President Donald Trump and other heads of state, and featuring numerous parallel events involving business and business issues.

For the first time, USCIB convened a series of meetings during UNGA week to highlight challenges and opportunities for the U.S. business community in advancing inclusive growth and sustainable development, working with the United Nations, and the importance of partnering with the U.S. government in advancing economic and other benefits at home and abroad.  USCIB events highlighted key U.S. business recommendations and involvement to advance the UN Sustainable Development Goals (SDG’s), inform climate change policy and implementation, and advance inclusive business engagement as part of UN reform.

These discussions explored the “ingredients for impact” to catalyze business contributions to the SDG’s under the theme, “Business Makes It Happen.”   Over the course of the week, USCIB worked closely with and welcomed representatives of the U.S Department of State, the Office for Management and Budget, the U.S. Agency for International Development (USAID) and the U.S. Mission to the United Nations.

USCIB organized 2 Breakfast Roundtables on:

  • Data analytics for SDGs and national reports, and
  • Public private partnerships for SDG impact
OECD Secretary General Angel Gurria speaks at one of USCIB’s UNGA side-events

USCIB members KPMG, Deloitte and Pfizer hosted USCIB events, which drew high-level participants and speakers including OECD Secretary-General Angel Gurria, Assistant UN Secretary General for Economic and Social Affairs Thomas Gass, Assistant UN Secretary General and Head of the NY office of UN Environment Programme (UNEP) Elliott Harris and Chief of the NY office of the UN Conference on Trade and Development (UNCTAD) Chantal Line Carpentier.  CEO of Novozymes and USCIB Board member and sustainability champion Peder Holk Nielsen presided over USCIB’s UNGA week wrap up event.

In addition to USCIB-organized events, USCIB was honored to work with the International Chamber of Commerce (ICC) and to represent the International Organization of Employers (IOE) in the launch of two important initiatives: the Equal Pay International Coalition (EPIC) and the ILO Alliance 8.7 study, “Global Estimates on Modern Slavery.”

USCIB joined forces with Business Fights Poverty to co-host the September 18 Business Fights Poverty Conference, “Rethinking Collaboration for the SDG’s”.

A full review of these meetings, their recommendations and next steps, as well as other USCIB involvement in UNGA week will be shared later this week.

China Announcement on ATA Carnet May Reduce Trade Deficit

Published on September 26, 2017

The tenth installment of the International Chamber of Commerce’s (ICC) World Chambers Congress (WCC) concluded last week in Sydney, Australia, which brought together over 1,200 delegates from across the globe to discuss challenges impacting the business and chamber communities and to exchange knowledge and expertise while promoting result-oriented innovation. In an ever-changing business climate, the Congress addresses and examines today’s most significant global issues.

USCIB’s Senior Vice President for ATA Carnet and Trade Services Andy Shiles attended the ATA Carnet global management meetings held during the WCC. A major outcome of these meetings was China’s announcement of an expansion of goods under their Carnet to include professional equipment and commercial samples. While China has yet to announce when they will implement this expansion, Shiles believes this will have a positive impact on U.S. trade.

“China’s Carnet expansion is a huge step in the right direction and will certainly minimize the United States’ trade deficit with China,” said Shiles. “We are living in exciting times of ATA Carnet, but we need to continue making progress.”

Shiles also reported that commitment for the development of joint projects to benefit the ATA Carnet have been outstanding, with excellent progress being made with Australia, Brazil, India, Indonesia and Poland.

Additionally, the meetings deliberated on the e-carnet development project, which is on track to begin a pilot in the latter half of 2018.

“I’m expecting great things for U.S. carnet development,” concluded Shiles. “2018 will be a historic year for the Carnet.”

If any U.S. companies have interest in getting exposure to their goods in the Chinese market, kindly contact Andrew Shiles.

USCIB’s Statement on China Urges WTO Compliance

Published on September 25, 2017

As China continues to grow in importance in the global economy, it is crucial for the Chinese and U.S. governments to continue to work together to address common challenges and responsibilities. In view of this, USCIB has recently submitted a statement to the United States Trade Representative (USTR) on China’s compliance with its World Trade Organization (WTO) commitments, which incorporated a wide array of input from USCIB members across various sectors.

In the statement, which is submitted annually, USCIB commended the U.S. and Chinese governments for important work in on-going bilateral dialogues, as well as in support of working relationships between U.S. and Chinese agencies which provide invaluable opportunities for exchanging information and addressing agency-specific issues. The statement addressed important issues to U.S. business including taxation, customs and trade facilitation, information technology and intellectual property rights. Furthermore, it advocated for continuing negotiations of a Bilateral Investment Treaty (BIT) between the U.S. and China.

“We also urge both countries to utilize the full range of multilateral forums in addition to the WTO, including the Asia-Pacific Economic Cooperation (APEC) Forum and the Organization for Economic Cooperation and Development (OECD), to work toward improved commercial relations,” said Eva Hampl, who leads USCIB’s work on China.

“While USCIB acknowledges the efforts China has made since joining the WTO in 2001 to meet its obligations under the terms of its accession agreement, there still remain significant WTO obligation compliance concerns,” added Hampl. These concerns include government procurement, trade restrictions in information technology and continued intellectual property violations in audiovisual, software, agriculture biotechnology and chemicals.

The full statement is available here.

USCIB Hosts Business & Human Rights Symposium

Published on September 18, 2017
L-R: Jonathan Drimmer (Barrick Gold), Sarah McGrath (ICAR), Ariel Meyerstein (Citi and formely, USCIB), Gabriella Rigg Herzog (USCIB)

USCIB teamed up with Barrick Gold and Article One Advisors on September 13 to hold a symposium—Human Rights and Remedy in Business Relationships with Limited Leverage. The symposium was hosted by Marriott International and held under Chatham House Rule.

Businesses often have different types of leverage that can be used to help promote corporate responsibility and respect for human rights in their operations and with their business relationships. Contracts provide a clear source of leverage, such as agreements with business partners or sourcing agreements with direct suppliers. This leverage can also extend to using business relationships influence to help promote greater access to judicial and non-judicial remedy for victims – in keeping with the United Nations Guiding Principles on Security and Human Rights (aka Guiding Principles).

“First and foremost, the Guiding Principles set out the critical duty of States to protect the human rights of their citizens through the development and enforcement of national laws,” noted Gabriella Rigg Herzog, USCIB’s vice president for corporate responsibility and labor affairs. “They also include the corporate responsibility to respect human rights and operate with due diligence, and the need for greater access to remedy for victims of alleged human rights abuse,” she added.

But what happens if a business’s leverage is limited? How can a company identify new ways to exercise leverage – especially when it relates to promoting respect for human rights and greater access to remedy – when faced with leverage-limiting scenarios franchises, licensing, sponsorships and non-operated joint ventures?

These questions were the focus of the symposium, which was attended by over 70 representatives of business, U.S. government and civil society. Presenters representing industries as diverse as extractives, hospitality and banking, as well as civil society, discussed stakeholder expectations for business, brainstormed on how to increase trust between stakeholders and business on the issue of leverage, the challenge of defining remedy, and moving from theory to action around key issues like performance, timing and achieving scale.

“Our conversation today is a continuation of the important business and human rights dialogue series launched by Coca-Cola, and which USCIB – together with the International Organization of Employers and the U.S. Chamber of Commerce – has been proud to co-sponsor,” said USCIB President and CEO Peter M Robinson. “And while we won’t likely resolve all of these important questions today, we’re proud to participate in this dialogue and we’ll look forward to seeing you all and continuing the conversation together in Geneva this November at the UN Annual Forum on Business and Human Rights – and beyond.”

Shiles to Promote Trade Services at World Chambers Congress

Published on September 18, 2017
This year’s World Chamber Congress is taking place in Sydney, Australia

The International Chamber of Commerce (ICC) kicks off the tenth installment of its biennial World Chambers Congress this week in Sydney, Australia, which will bring over 1,200 delegates from across the globe to discuss challenges impacting the business and chamber communities and to exchange knowledge and expertise while promoting result-oriented innovation. In an ever-changing business climate, the Congress, with its high level speakers, addresses and examines today’s most significant global issues.

Among them will be USCIB’s Senior Vice President for ATA Carnet and Trade Services Andy Shiles who will be attending ATA Carnet global management meetings in Sydney. Stay tuned for next week’s e-newsletter for a report from the field!

New South Wales Premier Gladys Berejiklian will officially opened the World Chambers Congress. While the Congress is taking place in Australia during the United Nations General Assembly in New York, ICC First Vice-Chair and Corrs Chambers Westgarth Partner and CEO John W.H. Denton acknowledged the important discussions taking place in New York and called on business and chamber leaders to show support for the UN Sustainable Development Goals and help ensure that businesses worldwide are doing all they can —in their daily operations and investments—to drive their implementation.

The #10WCC is jointly organized by the Sydney Business Chamber, a division of NSW Business Chamber and the ICC.

OECD Business Communicators to Meet in Ireland

Published on September 18, 2017
Dublin’s Samuel Beckett Bridge: The Irish capital will welcome business communicators from across the OECD.

Continuing its efforts to re-frame the global narrative on trade and economic openness, on October 12-13, Business at OECD (BIAC) will hold its 2nd Heads of Communications Roundtable in Dublin and Cork, Ireland, in cooperation with its Irish member Ibec . This is a two-day program for heads of communications from BIAC’s global membership, and USCIB company representatives are encouraged to attend.

“The roundtable will include a series of meetings, company visits, and guest speakers on themes relevant to communications professionals within business federations and individual companies, and will facilitate a solution-based discussion on the challenges we face in the current international socio-political environment,” according to Ali Karami-Ruiz, BIAC’s director of policy and communications. “Through the event, we will showcase the success and substance globalization has brought to Ireland’s economy.”

In the context of a growing populist narrative in some economies, Irish business leaders will address participants on the challenges and opportunities we face in communicating business and open markets. The program will include a number of company visits and inputs from the communications team behind the “Yes Equality” campaign for marriage equality in Ireland, and from the Irish government’s director of strategic communications.

Communications professionals from USCIB member organizations who are interested in participating in the roundtable should contact Jonathan Huneke, USCIB’s vice president for communications and public affairs.

 

ICC/USCIB Competition Committee Hosts DOJ Antitrust Expert

Published on September 18, 2017

USCIB’s Competition Committee held its annual joint meeting on September 11 in partnership with the International Chamber of Commerce (ICC) Commission on Competition. Introductory remarks included comments by Paul Lugard, partner, Barker Botts LLP and chair of the ICC Competition Commission, and John Taladay, partner, Baker Botts LLP and chair of the USCIB Competition Committee.

The meeting included an off-the-record exchange of views with Bernard A. Nigro, Jr., deputy assistant attorney general, U.S. Department of Justice, antitrust division, on issues of relevance to USCIB membership, including international engagement, trade related competition issues and mergers.

The remainder of the meeting provided updates on the ongoing projects of the various task forces of the ICC Competition Commission, including on compliance and advocacy, merger control regimes, due process, the International Competition Network (ICN), cartels and leniency, and court proceeding in antitrust damage claims.

Finally, the membership received an update on ASEAN competition issues by Hatasakdi Na Pombejra from HN Pro International, who presented on behalf of ICC Thailand.