News Stories Archives

Internet’s Future to be Discussed at OECD Digital Economy Ministerial

Published on March 7, 2016

Digital GlobeThe rapid increase of information and communications technologies (ICT) and online participation compels us to consider the potentially transformative effects of technology on a broad range of socially beneficial, data driven applications. The upcoming 2016 OECD Digital Economy Ministerial in Cancún is an opportunity to think about the path forward and continue to promote these transformative opportunities in an open, transparent, responsible and inclusive manner, respecting both individual rights and freedoms and the rule of law.

Contributing actively to the development of the next OECD Committee on Digital Economy Policy (CDEP) Ministerial Declaration, a delegation from the Business and Industry Advisory Committee (BIAC) to the OECD led by USCIB ICT Committee Chair Joe Alhadeff is raising business concerns about the future of the digital economy. The drafting session for the Ministerial Declaration, a multi-stakeholder consultation process also including advisory members of the technical community, has progressed substantially from the first draft in September. The next version of the consensus-built OECD CDEP Ministerial Statement will be available during the next CDEP meetings from March 29 to April 1.

Please read “Enabling a Vibrant Digital Economy” by USCIB President and CEO Peter Robinson for more information on USCIB’s involvement in the Digital Economy Ministerial.

BIAC to Hold Forum on Innovation in Health and Well-Being

Published on March 7, 2016

heart_cardio_resized_ssActive and healthy populations are the backbone of our economies. OECD countries are striving to develop more sustainable healthcare systems that harness innovation to achieve better health outcomes, greater productivity, and well-being. To show what the private sector is doing to address these obstacles, the Business and Industry Advisory Committee (BIAC) to the OECD will hold a Forum on Innovation in Health and Well-Being on May 3-4, 2016 in Paris at the OECD Headquarters.

This two day event will feature interactive panel discussions on innovative on-the-ground projects and explore trailblazing solutions from BIAC’s global membership. In 2017, Health Ministers from OECD countries will meet to discuss the next generation of health reforms and provide future orientations for OECD work. Against this backdrop, the event will allow participants to exchange solutions and policy recommendations with high-level representatives from the business community, governments, and leading voices in the field. The discussions will also explore how healthy populations can be a strong pillar for increased economic productivity and societal well-being. Registration details and an agenda will be soon released.

USCIB Reports from Peru: APEC SOM I

Published on February 29, 2016

Lima_PeruUSCIB staff attended the Asia-Pacific Economic Cooperation (APEC) Senior Officials Meetings (SOM) in Lima, Peru last week, to coordinate business engagement on a variety of issues including customs, chemicals in products, and information and communication technologies (ICT). Comprised of 21 Asia-Pacific economies that account for 40 percent of the world’s population, 50 percent of global GDP and half the world’s trade, the APEC forum is the region’s top economic dialogue dedicated to encouraging economic growth, regional cooperation and trade and investment. The Asia-Pacific region is of great interest to USCIB members, as global companies are eager to tap the region’s growing markets.

Trade Facilitation

USCIB’s Director of Customs and Trade Facilitation Megan M. Giblin participated in meetings of the Global Supply Chain Integrity Workshop, APEC Alliance for Supply Chain Connectivity (A2C2), and attended the APEC Subcommittee on Customs Procedures meetings through her role as Industry Co-Chair of the SCCP – Customs Virtual Working Group. USCIB member priorities were front and center at all the meetings attended, including the World Trade Organization Trade Facilitation Agreement (TFA), single window, customs reform, and other key topics such as e-commerce from a customs perspective and de minimis.

Giblin reported that the TFA and its implementation are on the minds of all APEC member economies. TFA implementation was the focus at most meetings. With respect to where APEC economies stand on TFA ratification, only 13 of the 21 APEC economies have ratified the agreement. 108 WTO members must ratify it before the agreement – which is estimated to reduce worldwide trade costs by up to 17 percent – can enter into force. Giblin leveraged her time with government delegations to promote TFA ratification, entry into force, and robust implementation of the commitments, and to simultaneously assess where the governments are in the ratification process.

Further, Giblin, assisted in a USAID-led presentation on the Global Alliance for Trade Facilitation, a new public private partnership tied to implementation of the TFA. In Giblin’s role representing USCIB as “ICC USA,” she spoke to the engagement with ICC Paris on the alliance, the structure and composition of the secretariat, broader alliance network, and aided in fielding questions from the delegates. She looks forward to continued communication and engagement on Alliance matters with ICC, but also with USCIB member companies in efforts to engage them directly in support of the alliance. For more information, please contact Giblin at mgiblin@uscib.org

E-Commerce and Data Privacy 

USCIB’s Vice President for ICT Policy Barbara Wanner participated in the APEC Electronic Commerce Steering Group’s Data Privacy Subgroup meetings from February 23 to 25 in Lima. The meeting’s highlights included a stock-take of the 11-year-old APEC Privacy Framework, exploration of efforts to expand participation in the Cross-Border Privacy Rules (CBPR) system in the both APEC and non-APEC economies, and the launch of a new effort to develop a communications strategy to more effectively explain the benefits of the CBPR system.

These meetings came on the heels of recent negotiations between the United States and the European Union on a new data protection framework, the EU-US Privacy Shield, and USICB members took the opportunity to underscore the importance of APEC’s CBPR as a solid, accountable, and enforceable privacy code of conduct for cross-border data transfers and the need to more effectively communicate to all stakeholders its potential for enabling global interoperability. For more information, please contact Wanner at bwanner@uscib.org

Chemical Dialogue

The APEC Chemical Dialogue convenes government officials and industry representatives for discussions about how to best regulate the chemicals trade in a way that protects the environment while minimizing costs to business. USCIB’s Vice President for Product Policy and Innovation Helen Medina attended the Chemical Dialogue and closely followed plans to revise the dialogue’s goals, which currently are: to facilitate trade by expanding and supporting cooperation and mutual recognition among chemical regulators in the region, to enhance understanding of the chemical industry’s role as an innovative solutions industry and to encourage chemical product stewardship, safe use and sustainability.

Highlights from the Chemical Dialogue include considering new work on sustainable chemistry, a self-certification form for chemical imports, and future workshops related to GHS and sharing of best practices in chemicals regulation. For more information, please contact Medina at hmedina@uscib.org

USCIB, Deloitte Host Roundtable on Streamlining Transatlantic Customs

Published on February 26, 2016

USCIB-Deloitte Event SpeakersWith the U.S. Customs Reauthorization bill having been recently signed into law, and the European Union (EU) preparing for the pending implementation of the changes to the Union Customs Code (UCC) this year, USCIB worked with Deloitte to put together a roundtable discussion about current issues facing transatlantic trade in the Customs space.

The event, titled “Strengthening Customs Efficiencies to Facilitate Trade and Investment: Current Dynamics Shaping Customs in the U.S. and the EU,” took place on the morning of February 17 at the Washington, D.C. offices of USCIB member General Electric. The off the record roundtable brought together business, government and other key stakeholder groups for an informal discussion on some of the key dynamics shaping customs policy in the U.S. and the EU and their impact on helping drive forward a strong and integrated transatlantic economy.

Speakers at the roundtable will included Jerry Cook (HanesBrands) Chair of the USCIB Customs Committee; Fernand Rutten (Deloitte) who briefed the committee on the UCC last month; Nasim Delami Fussell, Trade Counsel, House Ways and Means Subcommittee on Trade, and Christina Kopitopolous, Director, Customs and Trade Affairs, WTO and Multilateral Affairs Office, USTR. USCIB Director of Customs and Trade Facilitation Megan Giblin moderated the roundtable discussion.

“This was a very timely discussion that explored the opportunities and challenges in dealing with customs fit for the 21st century,” said Giblin. “The transatlantic voice has much to offer in helping shale a way forward.”

Participants talked about how the United States and the EU are working to streamline customs rules and regulations that are more appropriate for today’s global and digital marketplace. They addressed how such customs developments are aligning – or not – with the Trans-Atlantic Trade and Investment Partnership negotiations, the World Trade Organization Trade Facilitation Agreement and other trade liberalization initiatives to further integrate both economies.

Reforms Make Myanmar Open for Business

Published on February 26, 2016

Dawn in Bagan

Over the past several years the Obama administration has engaged the government of Myanmar to advance a range of political reforms aimed at strengthening the country’s rule of law and economy. Steps taken by the United States to normalize relations with Myanmar, including lifting an import ban, have brought tangible benefits to the people of Myanmar as well as to American companies, who have made positive contributions to Myanmar society through their high standards of corporate social responsibility.

On February 18, USCIB joined four other business groups urging U.S. cabinet officials not to renew sanctions against Myanmar in light of the country’s recent democratic reforms. Myanmar held elections last year that neutral observers noted were free and fair. Given this progress, the U.S. business community believes expanded economic relations with Myanmar are appropriate. Remaining sanctions should be eliminated, the business groups argued, because they create uncertainty for investors.

“The remaining U.S. sanctions are a significant reason why U.S. investment in Myanmar remains modest and Myanmar entrepreneurs cannot truly take advantage of their putative access to the American market,” USCIB and the other groups said in a statement. “By contrast, virtually all other countries that had previously maintained sanctions against Myanmar have removed them entirely, placing U.S. companies who wish to invest in Myanmar or otherwise support engagement at a unique disadvantage.”

The statement concludes that not renewing sanctions against Myanmar would signal the beginning of a new relationship with a country that has made substantial progress toward improved governance and the rule of law.

Changes to US Model Tax Treaty “Very, Very Complicated”

Published on February 26, 2016

taxes-portLast year the U.S. Treasury department announced proposed changes to the U.S. Model Income Tax Treaty, which is the model text used by American officials when they negotiate tax treaties with other countries. According to a press release issued by Treasury in May 2015, “The revisions to the U.S. Model text are intended to ensure that the United States is able to maintain the balance of benefits negotiated under its treaty network as the tax laws of our treaty partners change over time, and to deny treaty benefits to companies that change their tax residence in an inversion transaction.”

USCIB and other business groups have expressed concern that the treaty provisions tilt too far in the direction of denying inappropriate claims of treaty benefits. Although Treasury recently narrowed some of the anti-tax evasion provisions to be more palatable to the U.S. business community, tax practitioners say that the model’s reception will be uncertain, especially among America’s treaty partners.

Speaking to Bloomber BNA, USCIB Vice President for Tax Carol Doran Klein noted that the treaty is complex and will be difficult to negotiate with other nations.

“It’s really, really complicated, which is not surprising,” Klein said. “I do think that some of the novel provisions have been modified, which is better. But it’s going to be really difficult to get this negotiated and also to apply it.”

Uncertainty also remains as to how the proposed changes to the U.S. model tax treaty might impact the OECD’s work on Base-Erosion and Profit-Shifting (BEPS).

USCIB sent a letter to the U.S. Treasury on September 14 expressing concern with proposed U.S. model tax treaty changes, which in part attempt to prevent double non-taxation of income between tax treaty partners. While acknowledging that the treaty provisions address legitimate concerns, USCIB said that the draft provisions “tilt too far in their attempt to prevent inappropriate claims of treaty benefits.”

Obama Signs Customs Bill, Now Focus Shifts to Implementation

Published on February 25, 2016

Obama_Customs_BillPresident Obama signed the Trade Facilitation and Trade Enforcement Act, commonly referred to as Customs Reauthorization, into law on February 25, just two weeks after the Senate approved the bill. This bipartisan bill is the first true Customs modernization legislation in nearly two decades.

The legislation will strengthen trade enforcement at U.S. ports and borders, and update the organization and management of the U.S. Customs and Border Protection. The bill includes provisions that streamline and facilitate trade, reduce business costs and paperwork burdens, and provide an enforcement mechanism for trade agreements.

“It is timely then for us to be signing this bipartisan customs bill because it’s an important milestone in our trade agenda,” said President Obama at the signing ceremony. “This is an example of smart trade policy in the 21st century.”

USCIB has been a longtime supporter of Customs Reauthorization and has strongly advocated for policies that eliminate trade barriers, harmonize global customs and border procedures, as well as modernize outdate laws. The bill includes the following provisions: increased de minimis; updated returns processes; end of year 2016 ITDS deadline; specified CBP engagement with private sector; avoidance of US WTO compliance matter; improved IPR provisions (i.e., providing unredacted samples to rights holders); drawback simplification; and more!

“We welcome the signing of the Customs bill and thank the Administration and Congress for their hard work on this key bipartisan legislation that meets the needs of business,” said Megan Giblin, USCIB’s director for customs and trade facilitation. “Our focus on this bill’s provisions will now turn to implementation, and we look forward to working with the administration to ensure its success.”

OECD: Increase Private Investment in Developing Markets

Published on February 23, 2016

Global_Development_ChartThe United Nations estimates that the world will have to contribute over $4 trillion annually to finance the Sustainable Development Goals. It is clear that official development assistance from public coffers will not be enough to meet this daunting financing challenge. Private investment will not only be welcome, but indispensable for moving from “billions to trillions” in development finance.

Recognizing the much-needed role of business in this effort, OECD governments agreed last week at the High-Level Meeting of the OECD Development Assistance Committee (DAC) to enable greater private-sector investment in developing markets.

“The successful implementation of the Sustainable Development Goals will hinge to a large extent on the mobilization of private investment,” commented Marie Gad, vice chair of the BIAC Development Committee. “And to make that happen, the DAC is breaking new ground to create an enabling environment and help mitigate the risks facing foreign and domestic businesses investing in developing markets.”

Key elements agreed by OECD DAC member governments include:

  • A new OECD DAC work program to focus on good practices for providing concessional public international finance (such as loans, guarantees, equity holdings, and mezzanine finance) to investment projects in developing economies in order to attract international private capital.
  • A set of principles for the measurement of official development assistance designed to reflect the effort of donors in providing the right incentives and removing disincentives for instruments that engage private-sector investment.
  • A new measure that will track the Total Official Support for Sustainable Development (TOSSD), which will be agreed by October 2016, after which initial data collection will get underway in 2017, leading to a report to the UN 2030 Development Agenda implementation review in 2019. TOSSD will measure – and help encourage – private-sector financial flows generated through donors’ actions.
  • DAC engagement in the Global Partnership for Effective Development Cooperation will seek to expand the application of the OECD’s Policy Framework for Investment, as well as other OECD tools and analyses, aimed at strengthening the enabling environment for businesses in developing economies.

A number of steps now taken by the DAC correspond with a paper by the Business and Industry Advisory Committee to the OECD released in 2014 “Private Sector Perspectives on Private Sector Financing for Sustainable Development.“

Read the Communiqué of the OECD DAC High Level Meeting

USCIB-NYU Stern Fellowship in Business and Human Rights

Published on February 22, 2016

In order to run companies successfully, business leaders must have an awareness of human rights and corporate social responsibility issues and an understanding of how to confront them. For the second year in a row, USCIB has partnered with the NYU Stern Center for Business and Human Rights to offer first-year MBA students a paid opportunity to work at a multinational company on a business and human rights challenge during their summer. USCIB is inviting member companies to participate in the fellowship program that matches talented NYU Stern MBA students interested in corporate responsibility with USCIB members willing to provide a hands-on summer internship opportunity.

The deadline to apply is February 29, 2016. This year’s participating USCIB members include Facebook, New Balance, Newmont Mining and PepsiCo. All applicants will go through at least two rounds of interviews. First, a number of qualified NYU Stern MBA students will be selected by the Center from a general pool through an application and interview process. Applications of initially selected candidates will then be forwarded to participating companies so they can select which candidates they would like to meet for a second round interview. Each company will be able to make the final decision as to which candidate, if any, to extend an offer.

Last year, two fellows interned with USCIB members PepsiCo and DirectTV Latin America. The fellows discuss their experiences in blog posts here and here, as well as in the video below:

The fellows had very substantive experiences, completing tasks through their internships that contributed directly to key business operations and strategy in the area of CSR, sustainability and human rights

USCIB Heads to Peru for APEC Policy Dialogues

Published on February 22, 2016

APEC_PERUSupporting six million American jobs and hosting two thirds of the global middle class, the Asia-Pacific region is of great interest to the business community, as global companies are eager to tap the region’s growing markets. The Asia-Pacific Economic Cooperation (APEC) forum – the most influential economic dialogue in the region – continues to be a priority for USCIB members, as it is key to accelerating regional economic integration and promoting balanced, sustainable growth.

To aid private-sector engagement in the dialogue, USCIB works with the U.S. APEC business coalition to give members access to APEC officials and participate in APEC meetings throughout the year, culminating in the APEC CEO Summit, a meeting of CEOs and leaders from the APEC economies.

USCIB is in actively engaged in a number of the APEC working groups related to customs, product policy, and information and communication technologies. Each year, USCIB compiles an APEC priorities and recommendations paper to help direct and coordinate work with our members and APEC officials.

Three of USCIB’s policy team will be attending the upcoming first APEC Senior Officials Meeting (SOM 1) in Lima Peru, which began this past weekend.

Action on trade facilitation

Megan Giblin, USCIB’s director for customs and trade facilitation, will participate in the APEC Alliance for Supply Chain Connectivity (A2C2) and the Subcommittee on Customs Procedures meetings, and will identify linkages to the work underway within the USCIB Customs and Trade Facilitation Committee including, but not limited to, e-commerce, single-window efforts, and other aspects that tie directly to WTO TFA implementation.

Giblin was also confirmed last week as the industry Co-Chair to the APEC Subcommittee on Customs Procedures Virtual Working Group (VWG) along with the government of New Zealand. USCIB both helped create the working group and has facilitated its work, co-chairing the group, since its inception. The VWG is comprised of both customs officials and members of the private sector.

Smarter chemicals regulations

Helen Medina, USCIB’s vice president of product policy and Innovation will attend the APEC Chemical Dialogue (CD) meetings to support USCIB’s work and recommendations on a coordinated approach to implementation of the Globally Harmonized System of Classification and Labeling of Chemicals (GHS) and future GHS capacity building workshops. Medina will also support USCIB’s Customs priorities in the area of Chemical Import Procedures.

USCIB will continue to encourage work within the CD on metals risk assessment, specifically follow-up to the workshop on this topic in 2015 as well as the dissemination of pending OECD metals assessment scientific guidance as joint OECD-APEC guidance for APEC Economies.  Lastly, Medina will meet with the Lima Chamber of Commerce, Peru’s most representative organization promoting Peru’s global economic integration, to share USCIB priorities during the Peru host year and collaborate on areas of mutual interest.

Facilitating cross-border data flows

Barbara Wanner, USCIB’s vice president of ICT policy will participate in the SOM 1 meetings of the Electronic Commerce Steering Group (ECSG), with particular focus on the Data Privacy Subgroup. The meetings will focus on expanding APEC economies’ understanding of and participation in the Cross-Border Privacy Rules system (CBPR). The CBPR system requires firms in participating economies to develop their own internal business rules on cross-border data privacy procedures, complying with the system’s minimum requirements. The meetings will also explore a selection of next-generation privacy issues, such as data portability, open data and privacy, and big data.

Wanner  will also participate in a special workshop, “Building a Dependable Framework for Privacy, Innovation and Cross-Border Data Flows in the Asia-Pacific Region,” which will set the stage for subsequent discussions on APEC CBPR and other privacy issues during the informal and formal ECSG and DPS meetings.

If you would like any further information on the above meetings or issues, please feel free to reach out to our team.

Customs: Megan Giblin, mgiblin@uscib.org
Chemicals: Helen Medina, hmedina@uscib.org
ICT and Data Privacy: Barbara Wanner, bwanner@uscib.org
APEC priorities: Rachel Spence, rspence@uscib.org