Charting a Course Toward Smoother Cross-Border Trade

L-R: Rob Mulligan (USCIB), Mark Linscott (USTR), Maritza Castro (DHL), and Terry McGraw (McGraw Hill)
L-R: Rob Mulligan (USCIB), Mark Linscott (USTR), Maritza Castro (DHL), and Terry McGraw (McGraw Hill)

Bottlenecks along trade routes are some of the most stubborn obstacles to economic growth and development. Perishable goods go to waste at the border waiting to clear customs. Trucks carrying cargo in western Africa spend over two thirds of their time just sitting idle, sapping resources and contributing to environmental degradation. Facilitating trade and modernizing customs procedures are essential for increasing prosperity for all.

USCIB partnered with the International Chamber of Commerce (ICC) to hold the ICC and USCIB Customs & Trade Facilitation Symposium: Finding Solutions to Cross-Border Challenges a two-day policy conference that took place in Miami, Florida on February 23 and 24.

TFA: need for speed

With Trade Promotion Authority and Customs reauthorization set to drop soon in the United States Congress, and with the implementation of the World Trade Organization’s landmark Trade Facilitation Agreement (TFA) set to begin in WTO member countries, the time is right for thoughtful discussion on how to facilitate trade and eliminate red tape at the border.

“We’re sitting on the most robust trade agreement we’ve ever had,” said Terry McGraw, chairman of ICC and USCIB, referring to the WTO’s TFA. Throughout the conference, participants agreed that government and business leaders need to work together to get the TFA ratified and approved by two-thirds of WTO member states as soon as possible. Ratification of the agreement is not yet a done deal – only Hong Kong, Singapore and the United States have ratified it thus far.

Private-sector support is crucial for TFA to succeed, and the global benefits of improving trade facilitation will be substantial. The ICC estimates that implementation of the TFA will add $1 trillion to the global economy and create 21 million jobs worldwide, most in the developing world.

“It’s heartwarming for me to see private sector interest in this agreement,” said Linscott during a Q&A session with McGraw.

Finding solutions to cross-border trade

Over 100 representatives from government, business and national customs authorities attended this two-day symposium. Discussions on the first day included introductory remarks by Kunio Mikyuriya, secretary general of the World Customs Organization, Yi Xiazhun, deputy director general of the World Trade Organization and ICC leaders, as well as a keynote address by Mark Linscott, assistant United States Trade Representative for WTO and Multilateral Affairs; a stock-taking session on the WTO’s trade facilitation agreement; an overview of trade logistics and customs regimes and a review of ICC’s trade tools.

The second day featured a keynote breakfast by Customs and Border Protection (CBP) Commissioner Gil Kerlikowske and discussion sessions on the Panama Canal expansion and how best to balance border security with trade facilitation.

“The conference offered an exciting and timely opportunity for government officials and business leaders to discuss policies that improve trade between countries and along supply chains,” said Jerry Cook, vice president of HanesBrands and chair of USCIB’s Customs and Trade Facilitation Committee. “HanesBrands has done a lot of work in this area, and we are committed to finding solutions that make it easier for all companies to do business.”

Support from business is essential

Commissioner Kerlikowske stressed the importance of close collaboration between business and Customs authorities to ensure border security in a cost-efficient manner. He noted that if countries can agree on the same security standards, they can collectively improve trade as well.

Secretary General Mikuriya noted the close collaboration between Customs and ICC, and expressed thanks for business’s efforts on trade facilitation, helping to eliminate illicit trade and improving the efficiency of supply chains.

“I applaud the ICC for its unwavering support for the TFA,” said Mikuriya.

The conference ended with agreement that improving trade facilitation will benefit all businesses and create jobs. But there is still a more work to be done: the TFA must first be ratified, and the private sector’s efforts in convincing governments and the public at large about the benefits of the agreement will be crucial for the agreement’s ratification and ultimate implementation.

Speakers also highlighted the challenges on the ground as business, government and customs officials work on trade facilitation implementation. These include problems with infrastructure, lack of intellectual property rights enforcement, corruption and entrenched red tape at the border. Substantial political will must be marshaled by WTO member countries to change organizational cultures, and participation from business will be required.

“It’s encouraging to hear that a lot of members have worked on these efforts already,” said Rob Mulligan, USCIB’s senior vice president for policy and government affairs. “The private sector must continue to move forward on getting TFA done.”

View conference photos on Flickr.

Business and Disability

disability_sign_low_resCompetitive businesses increasingly recognize the value and importance of diverse workforces, and particularly the value to be had in employing persons with disabilities.  We are pleased to provide information on two resources available to our members seeking more information on this subject.

USCIB is proud to serve on the Steering Committee of the ILO Global Business and Disability Network, comprised of multinational enterprises, employer’s organizations, business networks and disability organizations around the world who share the conviction that people with disabilities add value to workplaces.

This ILO initiative has gathered over 50 multinational enterprises and employer’s organizations and business networks from a diverse range of sectors.

The ILO Global Business and Disability Network supports its members in their disability work and facilitates business-to-business dialogue around disability issues by:

  • Sharing knowledge and identifying good practices;
  • Developing joint products and services; and
  • Strengthening employers’ organizations and business networks through capacity building

For more information about the Network, visit www.businessanddisability.org

The second resource, offered by the Employment and Disability Institute in ILR School at Cornell University, is a free, online one-hour short course entitled Make the Strategic Case for Disability in the Workplace.  This ideo-based course features examples from well-known U.S. based companies that have made progress in including people with disabilities in their workplaces.

Find out more or register by going to:  http://info.ecornell.com/make-the-strategic-case-for-disability-in-the-workplace

USCIB Nominates First-Ever Business Representative for UNEP High Level Scientific Advisory Panel

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Dr. Neil C. Hawkins (Dow Chemical)

Following USCIB’s nomination, Dr. Neil C. Hawkins, corporate vice president for sustainability at The Dow Chemical Company, has been named to serve as the first business and industry representative to the United Nations Environment Programme’s (UNEP) newly created Global Environment Outlook (GEO) High Level Advisory Group.

The Global Environment Outlook (GEO) is an international consultative scientific and expert process that conducts integrated environmental assessments and reports on the state, trends and outlooks of the environment.  GEO reports present an annual “all of planet”  integrated assessment of ecosystems by scientists and environmental experts; its purpose is to inform policymakers and help set priorities for international cooperation on environmental challenges.

The upcoming GEO-6, to be launched in mid-2017, will build upon regional assessment processes and create a comprehensive picture of the environmental factors contributing to human well-being, accompanied by an analysis of policies leading to greater attainment of global environmental objectives and goals, including the U.N. Sustainable Development Goals (SDGs)s. The assessment will lay the foundation for continued socio-environmental assessments across relevant scales, with a thematic as well as an integrated focus, enabling and informing societal transitions and the tracking of SDG targets and goals as well as previously agreed internationally environmental goals. The enhanced policy analysis in GEO-6 will be aimed at assisting member states to position themselves on the most effective pathways for transitions towards a sustainable future. The GEO will bring together representatives from the U.S. and other national governments with experts representing a broad range of stakeholder constituencies.

Dr. Hawkins is the only business representative with a seat on this policy-driving panel.

“We’re thrilled to support Neil in this role on behalf of business writ large,” said Norine Kennedy, USCIB’s vice president for strategic international engagement, energy and environment. “His involvement in  the GEO assessment process will contribute to a more multi-dimensional assessment of planetary eco-systems and human impacts from a business perspective, and shed light on how the private sector can help deploy innovative solutions.”

In his global role as corporate vice president of sustainability at Dow, Hawkins drives strategy and implementation for Dow’s sustainability programs, including the enterprise-wide 2015 Sustainability Goals. He is a recognized practitioner and thought leader on sustainability in the international business community.

Hawkins’s nomination to UNEP’s GEO6 High Level Advisory Group is the most recent development in  USCIB’s engagement with UNEP and its  UN Environment Assembly in Nairobi, as well as USCIB’s inputs to previous GEO reports.

For more information on UNEP GEO, please see

http://www.unep.org/geo/

 

Record Number of Projects Submitted to ICC World Chambers Competition

Torino_2015_800x600px_rectangleThe International Chamber of Commerce (ICC) World Chambers Federation (WCF) has received a record number of innovation and best practice projects for the World Chambers Competition, a prominent feature of the ICC WCF 9th World Chambers Congress to be held in Torino, Italy in June. WCF is a specialized division of ICC encompassing chambers of commerce from every region of the world.

Open to more than 12,000 chambers across all five continents, the competition has received 80 applications from 40 countries for the 2015 edition, making this year’s event the biggest since its launch in 2003 in Quebec City.

“The World Chambers Competition is more than just an awards program. It is a unique forum to showcase the ingenuity behind cutting-edge business projects undertaken by small- and medium-sized enterprises that are part of chambers of commerce worldwide,” said Rona Yircali, Honorary Chair of the ICC World Chambers Federation and Chair of the Competition jury.

“The competition is an unparalleled opportunity to raise the profile of these ground-breaking projects and give them significant and much deserved visibility in the world business community,” Mr Yircali said.

The 9th World Chambers Congress, taking place from 10-12 June in Torino, Italy is the largest global gathering for chambers of commerce. Held every two years in a different region of the world, the Congress is the only international forum for chamber leaders to share best-practice experiences, exchange insights, develop networks, address the latest business issues affecting their communities and learn about new areas of innovation from other chambers around the world.

 

Read more on ICC’s website.

University of Houston Law Center wins ICC Mediation Competition 2015

University of Houston Law Center winners Rose Badruddin and Brandon Schrecengost
University of Houston Law Center winners Rose Badruddin and Brandon Schrecengost

The University of Houston Law Center has won the International Chamber of Commerce (ICC)’s 10th International Commercial Mediation Competition, taking the title after a thrilling final against the University of Sao Paolo.

The competition, which ran from February 6-11 in Paris, is ICC’s biggest educational event and the only moot devoted exclusively to international commercial mediation and is open to law and business schools worldwide.

Featuring some 150 mock mediation sessions based on real commercial disputes, the 2015 Competition tested the problem-solving skills of 67 teams from 34 countries, making it the biggest and most diverse yet.

University of Houston Law Center was represented by students Rose Badruddin and Brandon Schrecengost, who won internships at the ICC International Center for ADR, and the Center for Effective Dispute Resolution, as part of the Competition prize.

“I’m ecstatic!” said Schrecengost. “To get this far and eventually win is beyond anything we could have hoped for.”

Badruddin added: “Lawyers are usually taught to be independent but I think one of the biggest lessons of this competition for me is: trust yourself, but also trust your partner.”

The team was selected for their “good social dynamics” during their university’s series of mediation, negotiation, and arbitration competitions, according to coach Kevin Hedges, a practicing attorney who teaches at the University of Houston and has been a moderator, mediator and arbitrator. He added: “The competition has gotten much more competitive every year. It’s invaluable for the students to meet their peers from around the world and interact with them both socially and professionally.”

Throughout the competition, professional mediators drew on their own experiences of resolving business disputes to act as mediators and judges, while students played the roles of client and legal counsel. The final session involved a complex dispute over the low yields of a newly acquired vineyard on a South Pacific Island.

Read more on ICC’s website.

Staff contact: Josefa Sicard-Mirabel

OECD “Going for Growth” Report Reveals Ambitious Reforms Good for All

flags_many_nationsThe OECD recently published the latest edition of its flagship report “Going for Growth,” which assesses countries’ progress in implementing structural policies since 2013, and also identifies new priorities to revive growth. The OECD’s Going for Growth analysis forms the basis of the OECD’s wider contribution to the G20 Framework for Strong, Sustainable and Balanced Growth and to G20 National Growth Strategies.

Highlights from this year’s report include:

  • Structural reforms implemented since the early 2000s have contributed to raising potential GDP per capita by around 5% on average across countries. Most gains come from higher productivity.
  • Further reform based on OECD best practice could raise long-term level of GDP per capita by up to 10% on average across OECD countries.
  • The pace of structural reforms has slowed in most OECD countries in the past two years, but has been accelerating in major emerging markets.
  • Many of the OECD’s pro-growth structural policies have little or no impact on income inequality among households. In fact, a number of reforms reduce wage dispersion and/or household income inequality (e.g. reforms for better access to education, active labour market policies and growth-friendly tax and transfer systems). Also, reducing regulatory barriers to entry and competition in sectors with large potential markets is likely to reduce income inequality.

The Business and Industry Advisory Committee to the OECD Economic Policy Survey 2014, released last May, was a major business contribution to the formulation of the OECD’s Going for Growth report.

USCIB Adds Business Voice in Fight Against NCDs

WHO_hq_lo-resUSCIB submitted comments to the World Health Organization (WHO) on February 6 stressing the role business plays in combating malnutrition and other non-communicable diseases (NCDs). NCDs are responsible for over 60 percent of the world’s premature deaths, according to the WHO.

Last year the WHO established the Global Coordination Mechanism on the Prevention and Control of Non-communicable Diseases, an intergovernmental body designed to coordinate activities and multi-stakeholder engagement across sectors as the WHO works toward implementing an Action Plan on NCDs.

“We believe that the private sector has a legitimate role to play in working with the WHO, its Members States and civil society to curb NCDs,” wrote Helen Medina, USCIB’s senior director for product policy and innovation in a submission co-signed by the International Organization of Employers, “and it wants to be part of the solution.”

The submission noted that all companies have an interest in ensuring they have a healthy and resilient workforce, and for that reason the private sector must be included in policy discussions about how to best address NCDs. USCIB reiterated its messages that self-regulation can play a constructive role, public-private partnerships are an effective response to global health challenges and taxes on various foods and beverages have negative, unintended consequences, especially for societies’ poorest consumers.

The submission also included examples from USCIB member companies of business initiatives aimed at improving global health, such as The Coca-Cola Company’s support of the “Exercise is Medicine” program, which encourages doctors to include exercise when designing treatment plans for patients. Also, Nestlé’s Healthy Kids Global Program is a partnership initiative aimed at raising nutrition knowledge and promoting physical activity among school-age children. The program reached almost seven million children in 68 countries at the end of 2013. And Pfizer has supported a pilot project in China called “Healthy Heart – New Life,” focused on developing work-related healthcare services to address chronic disease.

 

Disney’s Rubbo to Chair USCIB’s Corporate Responsibility Committee

Laura Chapman Rubbo (Disney)
Laura Chapman Rubbo (Disney)

USICB is pleased to announce the appointment of Laura Chapman Rubbo of The Walt Disney Company as the new chair of its Corporate Responsibility Committee. Rubbo has served as co-vice chair of the committee since 2013.

Rubbo, a director in Disney’s international labor standards department, brings 20 years of experience in corporate social responsibility, international labor standards, and business and human rights.

“USCIB has played a critical role in helping Disney understand and respond to evolving expectations of global business in the corporate responsibility and human rights arena,” Rubbo said. “We are honored to take a more active role in contributing to the corporate responsibility conversation with USCIB, its members, international institutions and the broader stakeholder community.”

Ariel Meyerstein, USCIB’s vice president for labor affairs, corporate responsibility and corporate governance, welcomed Rubbo’s leadership. “We are thrilled to have Laura take the helm of the Corporate Responsibility Committee,” he said. “Her years of experience in the CSR space and tremendous energy will help strengthen our committee’s work promoting the business perspective on corporate responsibility.”

Rubbo was part of the United States delegation to the International Labor Organization’s 2014 International Labor Conference, and she is a frequent speaker at CSR-related events.

The next meeting of USCIB’s Corporate Responsibility Committee takes place on April 15 in Washington, D.C. Please contact Rachel Spence (rspence@uscib.org) for more information or to register.

USCIB Adds Its Voice to White House Forum on Human Trafficking

Secretary of State John Kerry speaks at the White House Forum on Combating Human Trafficking in Supply Chains at the Eisenhower Executive Office Building in Washington, D.C., on January 29, 2015. (State Department photo)
Secretary of State John Kerry speaks at the White House Forum on Combating Human Trafficking in Supply Chains at the Eisenhower Executive Office Building in Washington, D.C., on January 29, 2015. (State Department photo)

Marking the end of National Slavery and Human Trafficking Prevention Month, USCIB staff and members took part in a January 29 White House forum on combating human trafficking in supply chains, to address the pernicious incidences of labor trafficking around the world. The Obama administration committed to an agenda to combat human trafficking in 2012, and USCIB supports the administration’s stance and agrees that forceful labor recruitment has no place in business.

Ariel Meyerstein, USCIB’s vice president for labor affairs, corporate responsibility and corporate governance, attended the forum along with other representatives from the private sector, nongovernmental organizations and the U.S. government to discuss how all stakeholders can work together to eliminate trafficking in federal contracts and in private-sector supply chains.

Meyerstein noted that Secretary of State John Kerry “spoke eloquently on the moral imperative on all of us to work towards ensuring that no human being could ever own another person’s freedom.”

USCIB member representatives – including Bob Mitchell, global manager for supply chain responsibility at Hewlett-Packard and Wesley Wilson, senior director of responsible sourcing at Wal-Mart – spoke on a panel addressing “Private Sector Strategies to Combat Human Trafficking in Supply Chains.” The panelists shared their companies’ best practices for combating human trafficking, which included directly employing and paying all workers, working with foreign governments to prevent labor trafficking and implementing fair and transparent labor standards.

When asked what more could be done by the U.S. government to reinforce and amplify the work they are doing, both Mitchell and Wilson encouraged the U.S. government to engage bilaterally with other countries to impress upon them how seriously the U.S. government and U.S. businesses take the issue and to develop the prevention and enforcement capacities in other jurisdictions to complement private sector efforts.

Secretary Kerry also delivered remarks at the forum and presented the 2015 Presidential Award for Extraordinary Efforts to Combat Human Trafficking to the Coalition of Immokalee Workers’ Fair Food Program.

Last week the Federal Acquisition Regulatory Council, the body responsible for overseeing U.S. government procurement, published updates about new safeguards designed to strengthen protections against trafficking in federal contracts. These new rules, modeled on successful private sector practices, prohibit federal contractors from charging employees recruitment fees or using misleading or fraudulent recruitment practices, require contractors and subcontractors performing work valued at over $500,000 outside the United States to develop and maintain a compliance plan, and to certify that, to the best of their knowledge, neither they nor any of their subcontractors has engaged in trafficking-related activities.

USCIB has been active in the corporate responsibility space, having recently co-hosted a dialogue on responsible business conduct as part of President Obama’s plan to implement the UN’s Guiding Principles on Business and Human Rights, and will continue to work with the federal government and other stakeholders to eliminate human trafficking in supply chains.

More on the White House website.

BIAC Highlights the Importance of Effective Investor-State Dispute Settlement

In order to stimulate inward investment, investors must be treated fairly and protected against the arbitrary behavior of host states. Open, transparent and non-discriminatory investment policies and agreements are a must. In this context, Investor-State Dispute Settlement (ISDS) is an indispensable part of a fair, efficient investment protection system. It provides for a neutral and high-quality legal dispute resolution mechanism in cases of investment treaty breaches by host states.

In light of the current anti-trade sentiment criticizing the ISDS system, USCIB and its global network including the Business and Industry Advisory Council to the OECD believe that it is crucial that the discussion is put back in the right perspective and that common misrepresentations are effectively addressed. The OECD, as an internationally recognized forum for fact-based and objective analysis, and with a long track record of fostering open, transparent and non-discriminatory investment policies, should play an important role in providing objective analysis, thus helping to shape further understanding about the issues that are at stake. The BIAC paper on ISDS contains concrete proposals for future OECD analysis in this area.

USCIB has been a strong advocate for ISDS, and Shaun Donnelly, vice president for investment, trade and financial services, has been travelling around Europe making the case for a strong Trans-Atlantic Trade and Investment Partnership and explaining the importance of ISDS provisions in that and other international trade agreements.