Latest from USCIB Archives

Forum on Responsible Business in the Garment Sector

Published on July 28, 2014

garmentThe tragic collapse of the Rana Plaza garment factory in Bangladesh last year, which killed over 1,000 people and injured many more, put a spotlight on the garment industry and the safety of the millions of workers, factory owners and consumers that make up the entire supply chain of textiles and garments.

The garment sector has been high on the agenda of the Organization for Economic Cooperation and Development (OECD), which issued a statement this month on “One Year After Rana Plaza,” calling for increased action on guidelines for multinational enterprises operating in the textile industry.

At this year’s OECD Global Forum, an informal Ministerial meeting between OECD government representatives resulted in a call for a joint ILO-OEC Roundtable on Responsible Supply Chains in the Textile and Garment Sector, which will be held at the OECD headquarters in Paris on September 29-30, 2014. The roundtable will convene many government and OECD officials, and provides an opportunity for business to have its voice at the table, as well as allow a diverse array of stakeholders and policymakers to have fruitful discussions and share their viewpoints.

The roundtable, which is organized with active input from the Business and Industry Advisory Council to the OECD and the International Organization of Employers, will provide a forum for dialogue between representatives of governments, the private sector, trade unions and civil society organizations on building responsible supply chains in the textiles and garment sector, taking into account the OECD Guidelines for Multinational Enterprises. The roundtable will also identify challenges and areas for future collaborative action.

Staff contact: Ariel Meyerstein

More on USCIB’s Corporate Responsibility Committee

USCIB Marshals Business Input for the UN Sustainable Development Goals

Published on July 28, 2014

green buildingsThe United Nations Post-2015 Development Agenda will be an ambitious, internationally endorsed and holistic framework for achieving global prosperity. At the core of this new UN-wide program, the “Sustainable Development Goals” (SDGs) aim to address sustainable development, lifestyle and equity issues through international commitments, finance and partnerships.

Last week, the UN concluded the final session of its SDG Open Working Group process, delivering an outcome document that proposes 17 goals and no less than 170 targets. Member states were generally pleased with the targets but remained concerned about certain items. Louise Kantrow, the International Chamber of Commerce’s permanent representative to the United Nations, coordinated business input during the process through the Global Business Alliance for Post 2015.

Broadly, the UN SDGs are designed to complete the unfinished business of the UN’s earlier Millennium Development Goals (MDGs) as well as to respond to new challenges and catalyze the action of non-state actors such as business.

Unlike the MDGs, the new goals are being negotiated with a broad consultation, and they apply to all countries, not just developing ones. The goals are defined as inspired global targets, with each government setting its own national targets, taking into account particular capabilities and circumstances.

The Post-2015 Development Agenda process will culminate in September 2015, during a summit where heads of state will adopt the agenda, including the SDGs.

“USCIB maintains that in order for the SDGs to succeed, governments must build in a strong business role in the UN deliberations on sustainable development,” said USCIB’s Norine Kennedy, vice president of strategic international engagement, energy and environment. “Effective partnership and substantive dialogue with the private sector are indispensable.”

USCIB in partnership with the International Organization of Employers (IOE), the Business Council for Sustainable Energy (BCSE) and others, will convene a business UN “Door-knock” meeting in New York on September 26 with participants from government, business and NGOs. This unique business-organized event will demonstrate private sector experience and knowhow in addressing sustainability and development challenges. It will underscore the need for the right enabling frameworks to catalyze business contributions to advancing sustainability through good governance, innovation, infrastructure investment and economic growth and empowerment.

The proposed UN Sustainable Development Goals:

  1. End poverty in all its forms everywhere
  2. End hunger, achieve food security and improved nutrition, and promote sustainable agriculture
  3. Ensure healthy lives and promote well-being for all at all ages
  4. Ensure inclusive and equitable quality education and promote life-long learning opportunities for all
  5. Achieve gender equality and empower all women and girls
  6. Ensure availability and sustainable management of water and sanitation for all
  7. Ensure access to affordable, reliable, sustainable and modern energy for all
  8. Promote sustained, inclusive and sustainable economic growth, full of productive employment and decent work for all
  9. Build resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation
  10. Reduce inequality within and among countries
  11. Make cities and human settlements inclusive, safe, resilient and sustainable
  12. Ensure sustainable consumption and production patterns
  13. Take urgent action to combat climate change and its impacts
  14. Conserve and sustainably use the oceans, seas and marine resources for sustainable development
  15. Protect, restore and promote sustainable use of terrestrial ecosystems, sustainably manage forests, combat desertification, and halt and reverse land degradation and halt biodiversity loss
  16. Promote peaceful and inclusive societies for sustainable development, provide access to justice for all and build effective, accountable and inclusive institutions at all levels
  17. Strengthen the means of implementation and revitalize the global partnership for sustainable development

Staff contacts: Norine Kennedy and Ariel Meyerstein

More on USCIB’s Environment Committee

More on USCIB’s Corporate Responsibility Committee

Worrying Rise in Coastal Sea Hijackings

Published on July 25, 2014

Globally, 116 incidents of piracy and armed robbery against ships were reported to the Piracy Reporting Center of the International Chamber of Commerce International Maritime Bureau (IMB). The center raised concerns over a worrying trend of small tanker hijacks during the first half of 2014.

In Southeast Asia, reports indicate at least six coastal tankers were hijacked for their cargoes of diesel or gas oil, sparking fears of a new trend in pirate attacks. Before these hijackings, the majority of attacks in the region had been aboard mainly anchored vessels boarded for petty theft.

“The recent increase in the number of successful hijackings is a cause for concern,” stated IMB Director Pottengal Mukundan. “These serious attacks have so far targeted small coastal tankers. We advise these vessels to maintain strict anti-piracy measures in these waters, and to report all attacks and suspicious approaches by small craft.”

In 2014, 10 vessels have been hijacked, seven fired upon and 78 boarded. Two hundred crewmembers were taken hostage, five were kidnapped and two were killed, according to the IMB report.

Read more on the ICC website.

Staff contact: Kristin Isabelli

More on USCIB’s Customs and Trade Facilitation Committee

Innovation Recognized as Key for Economic Growth

Published on July 22, 2014
ICC Secretary General John Danilovich
ICC Secretary General John Danilovich

“The innovation sector has the largest multiplier effect of all on job creation,” said John Danilovich, secretary general of the International Chamber of Commerce, at a Business 20 panel discussion in Sydney, Australia. At the panel he unveiled the 7th edition of the Global Innovation Index 2014 and addressed how G20 targets can be fulfilled by developing the knowledge and innovation sectors.

A leading reference on innovation, the Global Innovation Index ranks world economies according to innovation capabilities and results. This year’s theme, “Human Factor in Innovation,” explored the role of individuals and teams behind the innovation process. The 2014 index features data for 143 countries, with Switzerland at the top of the ranking and the United Kingdom in second place.

“The G20 is looking for all possible drivers of economic growth, including trade and investment in particular.” Danilovich said. “Innovation is a critical engine of business growth and job creation in large and small firms alike.”

Danilovch also stressed the importance of business to support innovation: “Business investment in knowledge-based capital makes a considerable contribution to productivity.” He said. “Market competition requires companies to innovate. The private sector can be a key partner in helping governments find solutions to development challenges, and can accelerate the achievement of core development objectives.”

ICC is actively engaged in encouraging innovation and the development of the knowledge economy through the work of its Commission on Intellectual Property. The commission gathers over 300 business executives and private practitioners from 50 countries to formulate ICC’s intellectual property policy.

On a related note, USCIB’s next Intellectual Property Committee meeting will be held at USCIB’s Washington, D.C. offices on September 11 from 10-12 p.m.

Read more on the ICC website.

Staff contact: Helen Medina

More on USCIB’s IP Committee

Action on Global Tax Reform

Published on July 22, 2014

tax penAs part of the project to rewrite global tax rules, the Organization for Economic Cooperation and Development (OECD) released commentary on Common Reporting Standards, a milestone in the effort to help countries implement an automatic exchange of information (AEOI) regime. AEOI would allow governments to automatically collect financial data from banks for tax purposes.

USCIB and the Business and Industry Advisory Council (BIAC) support OECD and G20 efforts to ensure taxpayers pay what they owe and appreciate the need for automatic exchange of information. The OECD must continue working with the private sector to ensure that the costs borne by businesses are taken into account and that business will need time to adapt systems to the AEOI requirements.

In September 2013, G20 leaders committed to AEOI as the new global standard of cooperation between tax administrations and supported the OECD’s work aimed at presenting a single global standard. Progress made on that front this year will go a long way toward implementing the policies necessary for identifying customers’ tax residences and exchanging relevant information between tax authorities.

Countries’ implementation guidance must also provide business with sufficient time to implement the significant new obligations that will be imposed on business by the common reporting standard.

“BIAC is particularly pleased that the business community, the OECD and its member governments were able to engage in a consistently frank and open dialogue that led to a result that reduced the potential burdens on business while achieving the OECD’s tax compliance objectives,” said Will Morris, chair of BIAC’s Taxation and Fiscal Policy Committee. “This dialogue must continue if the CRS is to be implemented consistently by the adopting jurisdictions.”

The Common Reporting Standard is based on a similar information-gathering program developed by the United States, the Foreign Account Tax Compliance Act (FATCA). That U.S. policy acted as a catalyst for the move towards AEOI in a multilateral context.

Staff contact: Carol Doran Klein

More on USCIB’s Taxation Committee

ICC Advises Against Exit Taxes

Published on July 17, 2014

As some European countries consider adopting exit taxes to increase revenue, the International Chamber of Commerce issued a policy statement warning that exit taxes could seriously disrupt international business restructurings and movements of capital.

The ICC statement strongly advises against exit taxes regimes which generally seek to tax unrealized gains the moment a company’s seat or assets leave the country. USCIB contributed to the development of this statement.

“While the international community is currently debating a fundamental restructuring of the international taxation system, we see that as a means to increase their revenues more countries are considering levying additional taxes, such as exit taxes,” said Chirstian Kaeser, global head of tax at Siemens and chair of the ICC Commission on Taxation. “These taxes increase the risk of double taxation and thereby negatively impact investment and growth at a time when economic recovery is still fragile,”

The revised policy statement acknowledges recent developments, most notably the Organization for Economic Cooperation and Development (OECD) Base Erosion and Profit Shifting Project (BEPS) initiated by the G20. USCIB plays a leading role in OECD global tax discussions and recently held its annual International Tax Conference on BEPS.

Read more on the ICC website

Staff contact: Carol Doran Klein

More on USCIB’s Taxation Committee

Global Survey Identifies Business Priorities for G20

Published on July 16, 2014

G20_surveySydney, July 16, 2014 – A global survey released today by the International Chamber of Commerce (ICC) shows that further liberalization of multilateral trade is at the top of the business community’s wish-list for G20 leaders at their summit in Australia later this year, according to ICC’s American national committee, the United States Council for International Business (USCIB).

Drawing on ICC’s unique and extensive international network of companies and associations in over 130 countries, the survey identified advancing a multilateral trade agenda, along with actions to improve conditions for investment and boost infrastructure, as top business priorities for the G20. It also found support for intellectual property protection and sustainable energy as priority issues to be addressed by G20 leaders.

“The prioritization of trade sends a clear signal that business believes that G20 leadership can progress the current momentum in international trade negotiations,” said ICC Chairman Terry McGraw, who also serves as chairman of USCIB. “In the aftermath of last year’s historic WTO agreement on trade facilitation, we now have the most robust trade agenda in decades. With a renewed sense of collaboration among the world’s trading partners, the time is right for the G20 to build upon the leadership in trade that it so ably demonstrated in Saint Petersburg.”

Launched at the 2014 Business-20 (B20) Summit in Sydney today, the Global Survey of Business Policy Priorities for G20 Leaders: Report on Key Findings, reveals that three-quarters of surveyed business representatives believe the G20 has been instrumental in improving the global business environment following the financial crisis in 2008 and remains a relevant body for addressing global economic issues.

A large majority of survey respondents said that business should be more involved in the G20 process via participation in institutionalized meetings with G20 ministers, inclusion in official issue working groups and direct dialogue with G20 leaders.

The survey solicited views from large corporations, as well as small- and medium-sized enterprises (SMEs), across a wide breadth of industries. The approximately 2,000 survey respondents come from more than 100 countries, including all G20 member countries. Significantly, the majority of the respondents were from SMEs and almost half of respondents were business owners or CEOs.

“The G20’s decisions and agenda impact core business goals for trade, investment, economic growth and job creation, and are increasingly shaping intergovernmental policies that affect business internationally,” said ICC Secretary General John Danilovich. “ICC has been deeply involved in the work of the G20, and strives to represent the voice of international business in the deliberations of G20 leaders. Our survey findings underline the importance of having a robust business-to-government dialogue on the G20 agenda.”

ICC created the Global Survey to gauge the business community’s perception of the G20 and identify business policy priorities for G20 leaders that encourage business expansion and job creation, both of which are crucial to achieving the G20’s goal of strong and sustainable growth. ICC effectively targets G20 policy development on a global scale through its G20 CEO Advisory Group, which serves to intensify top-level international business engagement and to ensure the inclusion of business views in the deliberations of G20 leaders.

Watch USCIB Chairman Terry McGraw Discuss the G20’s Global Growth Target (CNBC)

About USCIB:
USCIB promotes open markets, competitiveness and innovation, sustainable development and corporate responsibility, supported by international engagement and regulatory coherence. Its members include U.S.-based global companies and professional services firms from every sector of our economy, with operations in every region of the world. With a unique global network encompassing leading international business organizations, including ICC, USCIB provides business views to policy makers and regulatory authorities worldwide, and works to facilitate international trade and investment. More at www.uscib.org.

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

Business Makes the Case for Gender Diversity

Published on July 16, 2014

women workplaceThe International Chamber of Commerce (ICC) Secretary General John Danilovich has urged businesses and governments to step up efforts to engage women more fully in the workforce, particularly in leadership positions.

Danilovich told business, government and university representatives gathered in Sydney that despite making up over half of the world’s population, women’s contribution to measured economic activity was far below its potential.

“There is a huge unrealized economic opportunity,” said Danilovich. “Given the need for effective solutions to sustain global growth, it is both economically and socially necessary to tap into the skills and talent of women that are currently underutilized or left out of the labour force altogether. Since 812 million of the 865 million women worldwide who have the potential to contribute more fully to their economies live in the developing world, this is especially necessary for emerging and developing nations, since.”

The new ICC Secretary General was speaking at an event called “Women’s Empowerment Principles: Equality Means Business”, organized by the Australian Chamber of Commerce and Industry alongside this week’s B20 summit for business leaders from Australia and across the G20 member countries.

Read more on the ICC website

More on USCIB’s work on gender diversity

Staff contact: Justine Badimon

ICC Court of Arbitration Expands its Global Reach

Published on July 16, 2014

Fresh data confirms that the International Chamber of Commerce’s Court of Arbitration is a truly global dispute resolution provider. In 2013, the court received 767 new requests involving parties from 138 countries, and 80 percent of the cases were cross-border dispute cases between parties of different nationalities.

Data also shows that the number of arbitrators and the places of arbitration increased. ICC’s arbitrators now represent 86 different nationalities (up from 76 in 2012), and arbitration proceedings were located in 63 different countries.

arbitration chart

The ICC’s court is equipped with extensive knowledge of local traditions, languages and legal cultures to effectively administer disputes. The court has nine case management teams, each focused on a different region of the world. The ninth team was established in the United States last year, operating under the corporate name of SICANA with offices in the same building as USCIB.

Led by Josefa Sicard-Mirabel, SICANA is ideally located to handle the court’s growing North American caseload. The number of disputants from the United States and Canada grew by 28 percent last year. American parties continue to be the most numerous of all nationalities represented in ICC arbitrations.

A more detailed statistical report will be published by ICC in August 2014.

Staff contact: Josefa Sicard-Mirabel

Enter ICC’s International Commercial Mediation Competition

Published on July 16, 2014

The International Chamber of Commerce’s International Center for ADR will celebrate the 10th edition of its International Commercial Mediation Competition from February 6-11, 2015. Universities and mediators can now apply to a unique event which will attract participants from all over the world.

The Competition is the only moot devoted exclusively to international commercial mediation and is open to law and business schools worldwide. It provides an excellent opportunity for the next generation of international lawyers and business professionals to hone their dispute resolution and mediation advocacy skills.

With its incredible international outreach and selective procedure, the competition has become ICC’s biggest educational event and a must-go-to event for the commercial mediation community across the globe. A series of festive activities will also take place this year to celebrate the 10th anniversary.

Throughout the Competition, university students face complex international business problems which they attempt to resolve in mediation proceedings conducted pursuant to the ICC Mediation Rules. Victoria Serigano, student and member of the team from Benjamin N. Cardozo School of Law, United States, said: “This Competition was the best experience of my law school career. I greatly appreciated the opportunity to meet ADR practitioners and law students from around the world.”

Find out more on the ICC website

Read our coverage of last year’s International Commercial Mediation Competition

Staff contact: Josefa Sicard-Mirabel