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USCIB Statement on the U.S. Election Results

Published on November 9, 2016

Trump announces security policy in Philadelphia, PennsylvaniaNew York, N.Y., November 9, 2016 – Terry McGraw, chairman of the United States Council for International Business (USCIB) and Peter Robinson, USCIB’s president and CEO, released the following statement on the results of the U.S. election:

“We congratulate Donald J. Trump on his election as our next President. It has been an intensely hard-fought campaign, and we look forward to Americans coming together behind shared values and a common purpose. We also congratulate the members from both parties elected to both houses of the 115th Congress.

“It is important for the United States to remain engaged globally and provide leadership on a range of issues affecting our national prosperity, including international trade, climate change, sustainability and support for a rules-based global economy.

“American companies are heavily invested in creating the conditions for expanded U.S. influence internationally and renewed investment and growth at home. USCIB is eager to work with the new Administration and Congress – and with the overseas business partners with whom we have established longstanding close ties – to focus attention on the key issues and initiatives that will undergird America’s growth and success, and strengthen the global economy, in the 21st century.

“The next Administration faces numerous challenges as it takes office. A top priority should be to develop and implement, in concert with the Congress, a strategy for U.S. engagement with the wider world – one that both continues and augments the benefits that American businesses, workers and consumers draw from active participation in the global economy and international institutions. We need policies that anticipate, address and support the demands of a changing American workplace, while addressing the legitimate needs of those displaced or disadvantaged by the 21st-century global economy.

“Such a strategy must recognize and build upon America’s strengths in innovation, entrepreneurship, world-class work force and know-how. It should further seek to leverage American business to reinforce U.S. global leadership, and effectively engage with multilateral institutions to foster international rules and a level playing field that support our competitiveness. It should also seek to make these institutions more accountable and representative of key global stakeholders, including the private sector, in pursuit of shared goals and values.

“We are ready to work with the new Administration and Congress to strengthen U.S. competitiveness, reap the gains from participation in global markets and trade, and deliver benefits in the form of jobs and opportunities for U.S. workers. These objectives can and must be pursued together.”

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, the International Organization of Employers, and Business at OECD, USCIB provides business views to policy makers and regulatory authorities worldwide, and works to facilitate international trade and investment. More information is available at www.uscib.org.

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

As Paris Agreement Enters Into Force, What’s Next on Climate?

Published on November 8, 2016
kennedy_cop21
USCIB Vice President Norine Kennedy at last year’s Paris climate summit

The Paris Climate Agreement entered into force on November 4, as a critical mass of countries and regions deposited their instruments of ratification with the United Nations. But this marks more of a beginning than an end, since national governments and the UN system still must determine future steps in greenhouse gas reduction and measures to adapt to climate change. As COP22 – the 22nd Conference of Parties to the UN Framework Convention on Climate Change – got under way in Marrakesh, Morocco, we spoke with Norine Kennedy, USCIB’s vice president for energy and environment and a longtime participant in the UN climate talks, about the importance of the Paris Agreement’s entry in to force, and about what comes next.

Q. Why should U.S. business be interested in the post-Paris discussions in the UN?  Isn’t the ink dry and the rules set?

A.  In fact, the Paris Agreement is not a finished product – the broad outlines and goals are indeed established, but key details on a number of critical issues to business, such as the role of various national and regional carbon markets, the tracking and updating of national pledges, and how technology innovation and potential liability for climate-related damages might be tackled are still works in progress. There is still an essential role for U.S. business to stay in touch with our government delegation to offer views and suggestions on thorny issues, and provide examples and other relevant information on business initiatives.

Q. What does Paris Agreement’s entry into force mean for the private sector?

A. While it’s usually accurate to characterize the UN as a slow-moving beast, in this instance the quick entry into force of the Paris Agreement triggers a rapid scramble by governments to resolve outstanding issues and define important rules that govern new policies, and the review of national actions, and drive the development of even more ambitious actions. The next two years will bring multiple fast-moving – by UN standards – decision-making deliberations across a number of key issues, and USCIB will continue to track those that most directly impact our members. Through our affiliations with the International Chamber of Commerce (ICC) and the Major Economies Business Forum (BizMEF), we are developing global business recommendations on the top-line issues that matter to U.S. business. This is important, because it means that USCIB recommendations are amplified to other governments, and strengthened by alignment with the broader international business community.

[CLICK to download new BizMEF statements on the role of business in the UN climate talks, implementing the Paris Agreement, national reporting and verification and greenhouse gas markets.]

Q. What are USCIB’s priorities when it comes to some of the unfinished business from last year’s climate summit in Paris?

A. As the structure of UN initiatives under the Paris Agreement take shape, USCIB is focused on ways to carve out a clear role for business input and representation in the process. We consider it fundamental, at both the national and international levels, for policy makers to consult with business on the economic and environmental aspects of climate policies. There is no doubt that the Paris Agreement will affect every business sector, across all types of commercial activity, in both the near and the long terms. So preserving and improving the UN system’s accountability and transparency, and creating new opportunities for the private sector to contribute, this is USCIB’s bottom line. This is especially important as some other UN forums, such as the World Health Organization, are actively seeking to limit or exclude business input. As we have said on many occasions, if a UN climate agreement doesn’t work for business, it simply won’t work.

Q. Any thoughts about the U.S. presidential election and its implications for the UN climate process?

USCIB has represented its members in the UN climate deliberations since 1993, which is to say, over the course of several U.S. administrations. They have each been different, and USCIB has adjusted accordingly while staying the course. The common thread for USCIB has always been the importance of U.S. business as solution providers and the need to have U.S. economic interests represented and furthered in international decision-making on climate change, regardless of who is in the White House or in control on Capitol Hill. The climate challenge is itself a long-term phenomenon that impacts regulations and energy access in all countries where U.S. companies operate, and which will also offer new market and innovation opportunities for U.S. business. USCIB intends to provide continuity and thought leadership on climate policy in the broader context of sustainability, to the next administration and to future administrations. We intend to help U.S. government decision makers and the UN system to develop policy frameworks that best address climate change while also facilitating cross-border trade, investment and innovation by U.S. companies.

Business Engages With G20 on Employment

Published on November 7, 2016

youth_workingLeading governments and business organizations are redoubling their efforts to boost employment opportunities worldwide. On November 2 in Geneva, Linda Kromjong, secretary general of the International Organization of Employers (IOE), and Phil O’Reilly, chairman of Business at OECD (BIAC), attended an informal meeting of the G20 Employment Working Group.

That same day, USCIB president and CEO Peter Robinson took part in the inaugural meeting of the B20 (Business 20) Task Force on Employment and Education, of which he serves as a vice chair. The task force is chaired by Gerhard Braun, vice chairman of the German Employers Federation BDA. Key issues for Robinson in the task force include adapting to the future of work‎ and addressing youth unemployment.

In her remarks to the G20 working group, Kromjong highlighted the fresh approach that had been taken by China, during its year in the rotating G20 presidency, to rising global unemployment by focusing on innovation and entrepreneurship. She underscored that a number of important initiatives of the Chinese presidency, such as the G20 Apprenticeships Initiative and the G20 Structural Reform Agenda, have the potential to contribute to more dynamic labor markets.

O’Reilly commended the upcoming German G20 presidency on its plans to closely engage with social partners, including the business community. He said business supports many of the ambitious agenda items of the German presidency and that it is exciting that the “future of work” has been put on the G20 agenda.

Trade in the Digital Economy

Published on November 7, 2016
USCIB Senior Vice President Rob Mulligan (center) at the BIAC/Business at OECD Trade Committee meeting in Paris
USCIB Senior Vice President Rob Mulligan (center) at the BIAC/Business at OECD Trade Committee meeting in Paris

On November 3, the Business at OECD (BIAC) Trade Committee met in Paris and received a briefing from Didier Chambovey, chair of the OECD Trade Committee. Chambovey provided an overview of the OECD’s key work streams and responded to questions from members about what the OECD is doing on digital trade, the future priorities for the WTO, and the nexus between trade and environmental policy. Rob Mulligan, USCIB’s senior vice president for policy and government affairs, who also serves as a vice chairs of the BIAC Trade Committee, attended on behalf of USCIB.

The BIAC committee also discussed updating its Trade Priorities paper to address the changing global environment and to include new issues for the OECD to tackle in its work. Members provided input at the meeting and a revised draft is being circulated for input with the goal of finalizing the updated paper early in 2017.  The committee also agreed to update its papers on several issues related to Colombia accession to the OECD and agreed on talking points for BIAC intervention at the OECD Trade Committee meeting relating to agricultural trade policy, trade in environmental goods as contributing to sustainable development goals and climate change, and reforming trade in services.

Mulligan and several other BIAC members also participated in the Global Trade Forum hosted by OECD on November 2. Panels of experts addressed the topic of how policy development can keep pace with new business models and the emerging digital economy. Discussions focused on trade and investment linkages in global value chains, trade policy making in the digital economy, and managing disruption. Pat Ivory, vice chair of the BIAC Trade Committee, presented on the digital trade policy issues and highlighted the BIAC paper on cross-border data flows. A key takeaway from the forum was that an integrated suite of policies will be needed to address the declines in trade and productivity as well as the anti-globalization sentiment that has grown over the past few years.

The U.S. and Mexico Must Work Together as Neighbors

Published on October 31, 2016

Flag Badges of America and Mexico in PileUSCIB Chairman Terry McGraw has joined with ICC Mexico Chair Maria Fernanda Garza in a joint appeal for the United States and Mexico to work together to address common challenges of trade, immigration and security.

In a joint op-ed in the Mexican newspaper El Financiero, the two business leaders urged their compatriots to reject the antagonism emanating from the U.S. campaign trail, reminding readers of the direct and measurable benefits the North American Free Trade Agreement has brought to both Mexicans and Americans alike.

McGraw and Fernanda Garza finished by reiterating that the business communities of both the United States and Mexico are united in their support for the Trans-Pacific Partnership, which they urged their respective legislatures to ratify without delay.

Please see below for the English translation of the op-ed. To read it in Spanish on El Financiero’s website, click here.

USCIB and ICC Mexico each serve as their country’s national committees of the International Chamber of Commerce.

 

The U.S. and Mexico Must Work Together as Neighbors

By Harold McGraw III and María Fernanda Garza

If the U.S. presidential campaign has reminded us of anything, it is the importance of neighborliness. Just as your own neighborhood deteriorates if you and your neighbors don’t communicate or work together well, so it is in business and international affairs.

Right now, on both sides of the U.S.-Mexico border, we face a stark choice: build walls, foster mistrust and disengage our economies – or work together to continue building shared prosperity. As representatives of the business communities from both nations, we strongly urge our fellow countrymen and our leaders to choose the latter course.

Since the North American Free Trade Agreement was negotiated more than 20 years ago, Mexico and the United States have enjoyed an increasingly close and mutually beneficial relationship that builds on our respective strengths and abilities, our vibrant economies and vast resources, our unique position as neighbors and, most importantly, our peoples. Mexico, the U.S. and Canada have turned North America into one of the most important and most dynamic free trade areas in the world. It has taken foresight and resolve.

Bilateral trade between Mexico and the U.S. has multiplied by six since NAFTA’s entry into force, reaching nearly $500 billion in 2015. Mexico is now the second-largest export market for U.S. goods and its second-largest supplier. It is estimated that U.S. trade with Mexico supports some six million American jobs.

With a growing, $1 trillion economy and a developing middle class that eagerly consumes U.S. and other foreign products, Mexico is the world’s 9th-largest world importer, and it buys 16 percent of everything the U.S. sells to the world. It is the largest export market for California, Arizona, New Mexico and Texas, and one of the three most important export markets for 29 other U.S. states.

This burgeoning trade relationship is built upon regional economic integration, cooperation and capitalizing on both nations’ competitiveness. Bilateral trade often occurs in the context of shared production, where manufacturers on each side of the border work together to produce goods. The development of robust supply chains as a result of NAFTA has translated into highly integrated trade in such key industries as automobiles, aerospace and electronics.

For instance, Mexican exports to the U.S. contain 40 percent of U.S. value-added, which is much higher than those from South Korea or China which are at five percent and four percent, respectively.

The U.S. and Mexico have a shared interest in fostering economic integration in North America, which is becoming, once again, the most competitive region in the world. Among other things, both countries need to ensure an efficient and secure border, the development of human capital for innovation and the growth of the services sector.

Businesses on both sides of the border firmly believe that the Trans-Pacific Partnership (TPP) will further strengthen Mexico-U.S. relations, North American competitiveness and our shared prosperity by encouraging competition and setting new and modern disciplines in the Asia-Pacific Region. With TPP, North America will become an even more important export platform to the world, with the consequent creation of jobs. We therefore are urging our respective legislatures to quickly ratify the TPP.

Especially in the face of growing protectionist and isolationist sentiment, we cannot stress strongly enough the critical importance of closer cooperation between our two governments in fostering a strong U.S.-Mexico relationship – one that contributes to shared economic growth, competitiveness and prosperity throughout North America. As neighbors, we have a shared responsibility to keep the neighborhood safe and prosperous.

Harold McGraw III is chairman of the United States Council for International Business. Maria Fernanda Garza chairs the Mexican chapter of the International Chamber of Commerce.

Labor and Corporate Responsibility Committees Meet in Washington

Published on October 31, 2016

USCIB’s Corporate Responsibility Committee and Labor & Employment Policy Committee held the fall installment of their biannual meetings October 19-20 at the offices of Covington & Burling in Washington D.C. The meetings comprised a day and a half of panels, bringing in speakers from business, government and civil society, along with robust discussion on issues of business and human rights. The 2016 fall meetings set a new participation record for the committees, with attendance by over 60 representatives from 35-plus companies.

Laura Chapman Rubbo (Disney) chaired the meetings and facilitated discussions, with support from Tam Nguyen (Bechtel), who serves as vice-chair of the Corporate Responsibility Committee, and Ariel Meyerstein, USCIB’s vice president of labor affairs, corporate responsibility and governance.

The keynote address was given by Ambassador Patricia Haslach, principle deputy assistant secretary in the State Department’s Economic Bureau. Other State Department speakers included Andrew Keller, director of sanctions policy and implementation and Melike Yetken, senior adviser for corporate social responsibility and the U.S. “national contact point” for the OECD Guidelines on Multinational Enterprises. Keller and Yetken discussed the impact of sanctions and shareholder resolutions on human rights, and developments concerning the OECD guidelines, respectively. Other speakers included former State Department official Alan Larson (Covington & Burling), Arvind Ganesan, who leads Human Rights Watch’s private sector engagement, and Carolyn Fisher (PepsiCo).

A considerable part of the agenda was devoted to the issue of forced labor. One panel covered elimination of the consumptive demand exception under the Tariff Act of 1930’s ban on importation of goods made with forced/child labor, with updates from Ken Kennedy, labor affairs policy adviser at U.S. Immigration, Customs & Enforcement (ICE), Jerry Malmo of the commercial enforcement division at U.S. Customs & Border Patrol (CBP), and Megan Giblin, USCIB’s director of customs policy.

Other meeting topics included company efforts to combat forced labor, with presentations given by a variety of companies across a wide range of industries, and a discussion on the UN Guiding Principles Reporting Framework, led by Shift Project, who was heavily involved in the development of the Reporting Framework. The second day included a conversation with Deborah Greenfield, deputy director general of policy with the International Labor organization, on the ILO’s work plan following this past June’s discussion on “Decent Work in Global Supply Chains.”

USCIB’s Corporate Responsibility and Labor & Employment Policy Committees will reconvene in the spring of 2017.

Gender Workshop Spotlights Importance of Education

Published on October 31, 2016
L-R: Nicole Primmer (BIAC), keynote speaker Julia Goodfellow, Ronnie Goldberg (USCIB), former BIAC Chair Charles Heeter
L-R: Julia Goodfellow (University of Kent), Ronnie Goldberg (USCIB), former BIAC Chair Charles Heeter

On October 24 in Paris, Business at OECD/BIAC hosted its third workshop on gender equality, addressing the third “E” of the OECD Project on Gender — “Education.” The workshop presented business initiatives that promote lifelong training and education of women, explored questions related to soft skills and career preferences, and discussed the impact of the digital economy and developments in technology for women at work. This year’s workshop was sponsored by Deloitte and Dell.

The focus was on STEM education. Keynote remarks were delivered by Dame Julia Goodfellow, vice chancellor of the University of Kent, who discussed the differences in subjects studied by women and men at universities (almost 70 percent of students studying languages are female, while almost 80 percent of students studying computer science are men), as well as obstacles women face in the later stages of their careers.

USCIB Senior Counsel Ronnie Goldberg provided on overview from the business perspective. She recounted that the first BIAC gender equality workshop had focused on “Employment,” including the “leaking pipeline” of female leadership. The second BIAC workshop shifted its gaze to “Entrepreneurship,” addressing women in the ICT sector and key activities for companies around the world in supporting women entrepreneurs, such as providing finance, mentoring and leadership. Goldberg discussed how since these two workshops, progress on gender equality has not come as fast as desired. She said this is because changes involve not only policy, but also shifts in social and cultural attitudes.

The first panel was full of updates by ambassadors to the OECD from Canada, Germany and Chile, as well as from the OECD secretariat. They discussed the status of women at work in their respective countries, and outlined various initiatives taken by government to support girls and women in STEM fields. The second panel looked at soft skills, training and education, and how to leverage gender balance for business success. Speakers, including USCIB member Coca-Cola, discussed efforts to mitigate unconscious and implicit bias, the link between having female leadership to better understand consumers, who are often women, and once again, understanding the reasons for the “leaking pipeline” and how to prevent such leaks.

A working lunch was led by representatives from Deloitte, who discussed the lack of women in STEM subjects not related to healthcare, using the United Kingdom as an example, and how to change this outlook for women in STEM. Suggestions included starting in early schooling, by giving young girls greater exposure to female professionals working in STEM and mitigating unconscious reinforcement of gender stereotypes.

The last session centered on the impact of the digital economy — on women in ICT sectors, how companies are educating women on technology, and how both women and companies are using technology to grow professionally. ICT company representatives, such as USCIB members IBM, Google and Dell, emphasized the benefits of having female employees, and discussed individual company initiatives to encourage young women to enter digital careers. Speakers stressed the importance of encouraging young girls’ confidence about their skills in STEM subjects, and the importance of demystifying the actual skills needed to succeed in the digital economy.

BIAC will release a report of the workshop and the issues raised during discussions. Reports from the previous workshops can be found here.

Despite Clampdown, High-Seas Piracy Still a Threat

Published on October 31, 2016

piracyKidnapping and hostage-taking persists off the coasts of West Africa and South East Asia, despite a 20-year low in piracy on the world’s seas, according to new figures from the International Chamber of Commerce‘s International Maritime Bureau (IMB).

IMB’s latest global piracy report shows that pirates armed with guns or knives took 110 seafarers hostage in the first nine months of 2016, and kidnapped 49 crew for ransom. Nigeria, a growing hotspot for violent piracy and armed robbery, accounts for 26 percent of all captures, followed by Indonesia, Malaysia, Guinea and Ivory Coast.

But with just 42 attacks worldwide this quarter, maritime piracy is at its lowest since 1996. IMB’s Piracy Reporting Center has recorded 141 incidents so far this year, a 25 percent drop from the same period in 2015. A total of 111 vessels were boarded, five were hijacked, 10 were fired at, and a further 15 attacks were thwarted.

Read more on ICC’s website.

USCIB Identifies Foreign Telecom and Other Trade Barriers

Published on October 27, 2016

Smartphone_mobile_globeUSCIB has cited numerous countries for maintaining barriers to exports of U.S. telecommunications and other products and services. In an extensive submission to the office of U.S. Trade Representative Michael Froman, we recommended the following countries (and regions encompassing multiple countries) for inclusion in USTR’s annual National Trade Estimate (NTE) Report:

Argentina, Australia, Brazil, Canada, Chile, China, Colombia, Costa Rica, Dominican Republic, Ecuador, Egypt, El Salvador, European Union, Fiji, Germany, Ghana, Gulf Cooperation Council, India, Indonesia, Korea, Latin America Malaysia, Mexico, Middle East and North Africa, New Zealand, Nigeria, Pakistan, Peru, Philippines, Russia, South Africa, Thailand, Tonga, Turkey, Uganda, Uruguay and Vietnam.

USCIB’s submission was in response to a request from USTR for public comments to assist it in identifying significant barriers to U.S. exports of goods, services, and U.S. foreign direct investment for inclusion in the Congressionally mandated NTE. Also part of this request, USTR asked for information regarding trade barriers to telecommunications products and services pursuant to Section 1377 of the Omnibus Trade and Competitiveness Act of 1988.

The submission included comments detailing a wide assortment of trade barriers affecting a broad range of industries. Such cross-sectoral barriers include local content requirements, data storage requirements, customs-related issues, and intellectual property protection. The submission also delved into burdensome financial services regulations, problems with food safety laws, problematic tax laws, foreign direct investment restrictions, and foreign telecommunications policies and regulations that have the effect of restricting efficient and economic provision of these services, among others trade barriers.

 

Ensuring a Level Playing Field With State-Owned Enterprises

Published on October 24, 2016
USCIB's Eva Hampl speaks at an OECD meeting on state-owned enterprises.
USCIB’s Eva Hampl speaks at an OECD workshop on state-owned enterprises.

Last week at OECD headquarters in Paris, business representatives highlighted the importance of avoiding market distortions and maintaining a level playing field between public and private companies.

Two OECD workshops on state-owned enterprises (SOEs) focused on the twin challenges of preventing corruption and of SOEs as global competitors. BIAC/Business at OECD, part of USCIB’s global network, arranged for private-sector participation and released key messages for the discussions.

In the workshop on SOEs as competitors, Eva Hampl, USCIB’s director of investment, trade and financial services, discussed where the gaps remain and what can be done about them. She emphasized the importance of addressing the challenges presented by SOEs in a world that is hungry for investment — including foreign direct investment — and economic growth. To the extent that SOEs are now operating on a global scale, they can crowd out private FDI in a way that may hamper competition, including in third markets.

Because SOEs can take on many forms, one important issue is increased transparency on SOE governance structures, as well as any advantages they enjoy which tilt the playing field in their favor versus private companies. Increased transparency alone, however, does not resolve many of the underlying systemic issues of SOEs competing, and does not automatically level the playing field, business representatives said.

Transparency is important since SOEs can be a prime vehicle for corruption. “Many SOEs operate in sectors with high corruption risks,” the BIAC messages note. “The 2014 OECD Foreign Bribery Report identified state-owned or state-controlled enterprises as the single biggest category of foreign officials who were bribed.”