News Stories Archives

2014 in Review: What Were You Most Interested In

Published on December 16, 2014

Time SquareAs we approach year’s end, here are links to our most clicked-on news stories of 2014:

  1. Chemicals Regulation Top-of-Mind at APEC (August) The chemicals trade cuts across multiple industries and contributes to the production of thousands of different products, from pharmaceuticals to computer microchips. At a key APEC meeting in China, government regulators met with industry representatives and other stakeholders to discuss opportunities and challenges in the chemicals industry.
  2. Contentious UN Treaty Vote on Business and HR (June) -Global business voiced concern over a vote by the UN Human Rights Council to negotiate a binding treaty on business and human rights, saying the vote could undermine ongoing efforts to implement the UN Guiding Principles on Business and Human Rights, which have garnered broad support among states, businesses and civil society.
  3. Schenk of UPS to Chair Global Customs Body (April)- The International Chamber of Commerce has named Norman Schenk of UPS to chair its Commission on Customs and Trade Facilitation, a key global forum to promote customs modernization and the elimination of red tape in cross-border trade.
  4. Promoting Responsible Investment in Myanmar (September) – USCIB strongly advocates for investment and responsible business practices in Myanmar. As the country makes strides towards reform, particularly with new child labor laws, significant investment opportunities await American and other foreign companies seeking to do business in Myanmar.
  5. USCIB Forum on Business and Human Rights (September) – The UN Guiding Principles established a framework under which states are obligated to protect – and businesses must respect – human rights. USCIB organized its annual human rights forum to review how companies are integrating human rights into their operations.
  6. USCIB Rolls Out ICC Antitrust Toolkit in U.S. (September) – Antitrust laws have proliferated rapidly in recent years, reflecting society’s increasing ethical expectations about the governance of business conduct. The ICC Antitrust Compliance Toolkit offers guidelines for companies big and small seeking to build a robust legal compliance program. USCIB and ICC unveiled the toolkit in the United States, with presentations from the Department of Justice and antitrust experts.
  7. USCIB Statement on China’s WTO Commitments (October) -China’s emergence as one of the world’s largest economies means that its policies impact its trading partners. USCIB submitted a statement to the U.S. Trade Representative providing member feedback on Chinese compliance with World Trade Organization commitments.
  8. Business Appeals to WTO Members to Save TFA (July) – The United States Council for International Business expressed dismay at the failure of World Trade Organization members to begin implementing the landmark Trade Facilitation Agreement, which would have boosted the global economy by $1 trillion. Final agreement on a protocol to implement the deal was blocked by objections from India and a few other developing countries.
  9. USCIB Trade Conference Spotlights Trade Policy Challenges (November) – With the uncertain future of the WTO’s Trade Facilitation Agreement and growing opposition to investor protections in regional trade deals, USCIB organized its first trade conference with the OECD on October 30 in Washington, D.C. to take stock of the global trade environment. The conference covered a wide range of trade and investment topics, and USTR Michael Froman gave keynote remarks.
  10. From Coast to Coast, Trade Equals Jobs(January) -Ever wonder how many jobs in your state are supported by international trade? As Congress looks at new Trade Promotion Authority legislation, you can find the answer with this helpful map from the Trade Benefits America Coalition.

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Staff contact: Christopher Zoia

More on USCIB’s Publications

Australia to Host ICC WCF 10th World Chambers Congress

Published on December 8, 2014

Following a competitive bidding and selection process, Sydney Business Chamber and New South Wales Business Chamber will host the International Chamber of Commerce World Chambers Federation (WCF) 10th World Chambers Congress, which will be returning to the Asia-Pacific region in 2017. WCF is a specialized division of ICC encompassing chambers of commerce from every region of the world.

Under the theme “Sydney: Where Business Connects,” the Australian chambers’ bid presented not only a vibrant city but also a global hub for business opportunities and a new convention centre that will host the future Congress. From exciting outdoor programs to intriguing session proposals, the Australian team successfully highlighted the chambers’ strengths and determination to bring the Congress forward.

“Our commitment to the International Chamber of Commerce’s World Chambers Federation’s mission has been unwavering. Australian chambers have attended every Congress since its inception,” said Stephen Cartwright, CEO of Sydney and New South Wales Business Chambers. “We are extremely excited to open our doors to our colleagues around the world for an unforgettable experience.”

The upcoming 9th World Chambers Congress will be held in Torino, Italy in June 2015. For more information visit the World Chambers Congress website.

Staff contact: Cindy Duncan

New OECD Report Will Help Fight Transnational Bribery

Published on December 2, 2014

scalesToday, the Organization for Economic Cooperation and Development launched its Foreign Bribery Report in Paris. The report presents an analysis of foreign bribery cases that have been concluded since 1999, and it is intended to help combat transnational corruption.

The launch event included an opening address by OECD Secretary General Angel Gurría, an address by French Minister of Justice Christiane Taubira, and a panel discussion with experts, including, GE Senior Vice President, Secretary and General Counsel Brackett B. Denniston, U.S. Department of Justice Assistant Attorney General Leslie R. Caldwell, chair of Transparency International José Carlos Ugaz, and Siemens Chief Compliance Officer Klaus Moosmayer, who is also the chair of the Business and Industry Advisory Committee (BIAC) Task Force on Anti-Corruption/Bribery.

Shaun Donnelly, vice president of investment and financial services at USCIB, as well as Kimberley Claman, senior vice president of international government affairs at Citi, represented USCIB at this event. They were joined by Hanni Rosenbaum, senior policy director at BIAC, who leads their anti-bribery effort.

The report provides an analysis of 427 foreign bribery cases that have been concluded since the entry into force of the OECD Anti-Bribery Convention in 1999. Key findings include that 53 percent of cases involved corporate management or CEOs, one in three cases were instigated by self-reporting (versus only two percent of cases by whistleblowers), 57 percent of cases involved bribes to obtain public procurement contracts, a staggering 75 percent of cases involved payments through intermediaries, and 69 percent of cases were settled with sanctions.

The various speakers all noted the groundbreaking importance of the report, however also emphasized that understanding the problem is only part of the solution. Addressing this point, the report concludes with Next Steps, including a list of ideas for future work, such as annual updates, a public database, further study of SOEs, or additional study of the demand side of bribery, a point Secretary General Gurria also noted in his comments.

This OECD report presents an important step forward in the OECD’s anti-bribery work surrounding the Convention.

Staff contacts: Shaun Donnelly and Eva Hampl

Public Consultation on the OECD Corporate Governance Principles

Published on December 2, 2014

The OECD Corporate Governance Principles are intended to assist governments and regulators in their efforts to evaluate and improve the legal, regulatory and institutional framework for corporate governance and provide guidance for stock exchanges, investors, corporations and others to foster good corporate governance. The objective of the OECD Principles is to contribute to economic efficiency, sustainable growth and financial stability.

The principles are currently being reviewed to ensure their continuing relevance and usefulness, and to take into account recent developments in the corporate sector and capital markets. After detailed discussion on the revised draft at the October OECD corporate governance meeting, on which the Business and Industry Advisory Committee (BIAC) to the OECD submitted comments, the OECD is currently inviting public comments on the latest draft text. Based on the outcome of the public consultation, a revised draft will be discussed at the next OECD Committee meeting in February 2015. BIAC will continue to contribute all along the process, both during the public consultation and in the discussions at committee level.

Staff contact: Ariel Meyerstein

More on USCIB’s Corporate Responsibility Committee

ILO Governing Body Tackles Differences Over Labor Standards

Published on November 21, 2014

On November 20, during the 322nd session of the ILO Governing Body (GB), agreement was reached on a way to address the ongoing dispute over whether Convention 87 contains a right to strike. Following months of intensive consultations and outreach by the Employers’ Group, its “package approach gained traction during the course of the two week session.

The GB decided to convene a three-day tripartite meeting in February 2015 on the controversial Convention 87 and its relationship with the right to strike, as well as the modalities and practices of strike action at national level.

The February meeting will bring together the three constituencies of the ILO, tasked to produce a report on which the March 2015 session will base a decision on the need for a request to be made to the International Court of Justice for an advisory opinion on the interpretation of a right to strike in Convention 87.

Speaking for the group, employers’ vice chairperson, Jørgen Rønnest said that, even though all parties made important concessions, the decision was “welcomed by the Employers for being constructive, practical and forward-looking.”

“We anticipate making further positive steps next February and March towards an ILO standards supervisory system that is fit for purpose well into the future,” Rønnest said

Read the IOE Report on the 322nd Session of the ILO Governing Body

Staff contact: Ariel Meyerstein

More on USCIB’s Labor and Employment Committee

Ernst Young Partners with US State Department in Support of Women Entrepreneurs

Published on October 10, 2014

In early October, USCIB member Ernst & Young partnered with the Bureau of Information Resource Management’s Office of eDiplomacy at the U.S. Department of State for the Woman’s Entrepreneurship in the Americas Initiative. This public-private partnership will benefit women entrepreneurs in Colombia, El Salvador, Bolivia and Argentina.

The State Department announced the partnership on October 3:

On Thursday, October 2, the U.S. Department of State announced a new partnership between Ernst & Young (EY), a multinational professional services firm headquartered in London, and the Bureau of Information Resource Management’s Office of eDiplomacy at the Department of State. The partnership was sealed by signing a memorandum of understanding (MOU) outlining a public-private partnership that will directly benefit women entrepreneurs in four Latin American countries as part of the Women’s Entrepreneurship in the Americas Initiative (WEAmericas).

Under this new partnership, EY will contribute to the long-term impact of four interactive technology workshops called “TechCamps” which the Department will conduct over the next six months. The Bureau of Information Resource Management will manage the WEAmericas TechCamps in partnership with the Bureau of Western Hemisphere Affairs (WHA), the Secretary’s Office of Global Women’s Issues, and U.S. embassies in Colombia, El Salvador, Bolivia, and Argentina. These workshops will enable women entrepreneurs in those countries to make better use of technology to grow their businesses. EY-affiliated firms in each of the four countries will provide up to six months of business advice and mentorship to an entrepreneur selected from among the participants in each of the four events.

Read the full State Department media note.

Staff contact: Shaun Donnelly

More on USCIB Membership

BIACs Continued Dialogue on Investment OECD Investment Consultation

Published on October 10, 2014

4855_image002The OECD plays a major role in highlighting the contribution of international investment to worldwide growth by advancing investment policy reform and international co-operation. Restrictions on FDI through various forms of investment protectionism can have significant adverse economic consequences for the global economic system and for job creation. In light of the highly competitive global environment, investors need adequate protection when making important investment decisions.

The OECD and its Freedom of Investment Roundtable have a key role to play in helping policy makers put in place a supportive business environment that eschews protectionist measures.

BIAC has urged the OECD to embark on an ambitious pro-active investment program and confirm the organization’s leading role in ensuring that markets are kept open for foreign investment, with a view to boost economic growth and foster job creation. BIAC looks forward to participating in the upcoming consultation with the OECD Investment Committee on October 15 to pursue its active dialogue in this area and to contribute to discussions on the update of the OECD Policy Framework on Investment (PFI). The PFI is an essential tool to assist governments engaged in domestic reform, regional co-operation or international policy dialogue on investment.

Staff contacts: Shaun Donnelly

More on USCIB’s Trade and Investment Committee

ICC Marketing Commission Looks at New Challenges to Ad Standards Worldwide

Published on October 6, 2014
During Ad Week in New York, ICC and USCIB representatives brought a global perspective to the annual meetings of the U.S. Advertising Self-Regulatory Council. L-R: Manuela Carvalho (Publicis Brazil), Sheila Millar (Keller & Heckman), Elizabeth Thomas-Raynaud (ICC).
During Ad Week in New York, ICC and USCIB representatives brought a global perspective to the annual meetings of the U.S. Advertising Self-Regulatory Council. L-R: Manuela Carvalho (Publicis Brazil), Sheila Millar (Keller & Heckman), Elizabeth Thomas-Raynaud (ICC).

As technology, media and consumer tastes continue to rapidly change and evolve, brand owners, advertisers and regulators are struggling to keep pace. Some countries are becoming more restrictive in food and beverage marketing, social media and marketing to children, while others are embracing a model of industry-led standards and self-regulation.

Last week, as the advertising world descended on New York for Ad Week, USCIB helped host a timely meeting of the International Chamber of Commerce (ICC)’s Marketing and Advertising Commission at the headquarters of 21st Century Fox. The commission encompasses experts in advertising standards from around the world, and oversees ICC’s longstanding Marketing Code – the benchmark for responsible marketing practices in numerous countries.

At the annual meeting of the Children’s Advertising Review Unit (CARU), which is part of the main U.S. advertising self-regulatory body, the Advertising Self-Regulatory Council, USCIB and ICC members brought a global perspective to discussions of ad standards, enforcement and changing consumer preferences. Sheila Millar (Keller & Heckman), vice chair of the ICC commission, was joined by Elizabeth Thomas-Raynaud of the ICC secretariat and Manuela Carvalho of Publicis Brazil for a discussion on “Exploring the Global Landscape for Marketing to Children.”

Carvalho noted the often vast differences in standards in various Latin American countries when it comes to using children as advertising pitchmen, airing ads targeted to children on television during certain hours, and addressing the role of parents in purchasing decisions. These differences, she said, often preclude marketing and advertising practices that would be deemed acceptable in the United States, such as a TV ad by a well-known fried chicken brand that uses child actors to evoke nostalgia for the product among adult consumers.

“Empowered” consumers vs. “insidious” marketers?

ICC Marketing and Advertising Commission Chair Brent Sanders (Microsoft) discussed the latest developments in what’s come to be known as “native advertising,” the blending of paid and editorial content.
ICC Marketing and Advertising Commission Chair Brent Sanders (Microsoft) discussed the latest developments in what’s come to be known as “native advertising,” the blending of paid and editorial content.

At the main meeting of the ICC Marketing and Advertising Commission, which drew strong U.S. participation along with representatives from several other countries, Commission Chair Brent Sanders (Microsoft) led an overview of the latest developments in so-called “native advertising.” This encompasses a variety practices that embed advertising or sponsored messages in editorial content, such as sponsored posts on a Facebook feed.

“Often the growth in native advertising is negatively depicted solely as consequence of the rapid decline in effectiveness of traditional banner ads” observed Chris Payne of the World Federation of Advertisers. “What is often forgotten is that this is itself a consequence of a shift in demand from advertisers, driven by the proliferation of social media and other online platforms. It is this change in demand which the industry is reacting to; in the future minimal disruption and maximum engagement will be key.”

“As such the move to a more harmonised, integrated means of engagement is a positive response to a shifting consumer landscape,” Payne said. “However, we must remain sensitive to the concerns of broader society, especially those concerns that question the integrity of industry and, where possible, we should work to address these concerns.”

Proliferating food labeling proposals

Other issues discussed by the commission included the proliferation of proposals – many quite draconian – to restrict food and beverage marketing in Latin America and other regions.  Mary Catherine Toker (General Mills) shared a proposal currently under consideration in Chile that would call for “stop sign” warning labels and advertising bans on most packaged food products sold in Chile. The nutrition standards are inconsistent with internationally accepted science and many trade experts believe that the proposed regulation violates Chile’s international trade obligations.

“We have a serious commitment to providing clear, fact-based nutrition information to consumers,” said Toker. “As members of the International Food and Beverage Alliance, we have made a global commitment to a common, science-based nutrition labeling system – providing information on the seven globally-recognized nutrients on pack with calories prominently placed on the front of pack, as well as to responsible advertising. We know from our consumers that they are not looking for warning labels and stop signs when making choices about feeding their family. Rather, consumers are seeking factual, science-based and objective nutrition information that allows them to make decisions based on their individual dietary needs.”

ICC and USCIB have long recognized the importance of responsible advertising as the engine of free content and an important key to making consumers aware of available products and services. New global regulations that threaten to restrict some types of advertising are a reminder to all advertisers of the need to remain actively engaged in promoting responsible self-regulation.

Staff contact: Jonathan Huneke

More on USCIB’s Marketing and Advertising Committee

Business to G20 Drive Growth With Trade

Published on July 18, 2014

Concluding the Business-20 (B20) Summit in Sydney today, CEOs from around the world have called on the G20 to forge ahead with opening global markets, by liberalizing trade and investment policies, as the surest way to revive economic growth and job creation.  The B20 Summit is an important opportunity for the global business community to provide input into the process leading up to the G20 Summit in Brisbane, Australia in November. Executives from USCIB member firms and across our global network played a prominent role.

“The most effective way to stimulate the economy and employment is moving ahead with a robust trade agenda” – Terry McGraw, USCIB Chairman.

CNBC Interview with USCIB Chairman Terry McGraw

The International Chamber of Commerce led a delegation of business leaders and CEOs to the B20 Summit, including USCIB and ICC Chairman Harold (Terry) McGraw III, for two-day discussions with business and government representatives. The event saw the finalization and prioritization of 20 mutually reinforcing recommendations for action by G20 leaders that if adopted, would exceed the two percent growth target set by G20 finance ministers in February.

“In a time of low, slow growth the most effective way to stimulate the economy and employment is moving ahead with a robust trade agenda,”said McGraw. “That is why first and foremost, G20 nations should implement and ratify the Trade Facilitation Agreement that the WTO agreed to in Bali last December. By removing barriers to trade and cutting red tape this agreement has the potential to reduce total trade costs by 10 percent in advanced economies and by 13-15.5 percent in developing economies.”

Political and business leaders at the summit included Australian Prime Minister Tony Abbot, Australia B20 Chair Richard Goyder and Australian American business icon Rupert Murdoch.

Coordinated Push on Global Trade

With the World Trade Organization forecast for global trade in 2014 still below the 20-year average, ICC has called on G20 leaders to promote a multilateral approach to international trade and investment and to demonstrate the G20’s continued relevance to global governance by maintaining momentum on trade.
Specifically, ICC seeks collective action to remove barriers to global exports of tradable services by making progress on an international trade in services agreement and also calls for further expansion of an International Technology Agreement relating to the export of IT products.
As the voice of global business,ICC and its American affiliate, USCIB, have also pressed for the greater promotion and protection of cross-border capital flows – especially foreign direct investment – an infrastructure information hub to increase the pipeline of bankable, investment-ready projects and a multilateral framework on investment that will create an enabling environment for greater investment across borders.

“All of us – the business community, government and NGOs – need to work together and push for more cooperation from all sides in order to build on the momentum coming from the Bali agreement and realize the promise of global trade as a means of raising standards of living around the world,” added McGraw.

During a panel discussion about ways to accelerate global trade, WTO Director General Roberto Azevedo noted that at the end of the day, government acts because the private sector pushes, and the Bali agreement would not have happened without business’s involvement. USTR Ambassador Mike Froman and McGraw added that a strong WTO is necessary to implement the Trade Facilitation Agreement and to prevent countries from lapsing back into protectionist national agendas.

Action Needed on Labor and Taxes

Following the first day of B20 Summit discussions, the secretary general of the International Organization of Employers, Brent Wilton, commended the G20 labor ministers for commitments they made last July to address labor market structural problems, education and workforce development. However, Wilton said those commitments haven’t been sufficiently implemented. He noted that the G20 labor ministers must “walk the talk” and follow up on the employment plans they committed to in September.

Also following the B20 Summit, the international business community is looking at the Organization for Economic Cooperation and Development (OECD) for knowledge and leadership in the run-up to the G20 Summit in November, especially on global tax issues.

“The OECD is in a unique position to advise governments on the benefits of open markets and structural reforms,” said Phil O’Reilly, chair of the Business and Industry Advisory Council (BIAC) to the OECD. Speaking at a meeting with OECD Secretary General Angel Gurria and G20 Business leaders in Sydney, O’Reilly said “The OECD mandate to develop a sustainable framework for international taxation is a case in point. The design and framework will be critical for the global economy. It must encourage and not hinder trade and investment across borders.

USCIB plays a leading role in OECD global tax discussions and recently held its annual International Tax Conference, organized with BIAC and the OECD.

Forging Ahead

Comprising over 30 CEOs and prominent business leaders, the ICC G20 CEO Advisory Group has been a platform for continuity in the B20 process between Summits, soliciting priorities and recommendations from companies and business organizations of all sizes and in all regions of the world.

ICC Secretary General John Danilovich said: “For the fifth consecutive year, ICC CEOs held leadership positions in the B20 task forces and contributed significantly to the development of the final recommendations. ICC’s participation in the B20 will contribute significantly to turning Mr. Abbott’s objectives for the Australia leg of the G20 into concrete action to drive measurable progress on the underlying G20 agenda of trade, growth, and jobs.”

“Looking ahead to the Brisbane G20 Leaders Summit in November, ICC will remain fully engaged with B20 leaders to rally ICC’s far-reaching network of companies and chambers of commerce to advocate for G20 Leader endorsement of the B20 recommendations,” said Danilovich.
ICC’s G20 CEO Advisory Group mobilizes worldwide policy-making expertise and solicits priorities and recommendations from companies and business organizations of all sizes and in all regions of the world. The group is composed of over 30 CEOs and business leaders working to ensure that the voice of business is heard by governments, the public and the media before, during and after each Summit.

Staff contact: Rob Mulligan

More on USCIB’s Trade and Investment Committee

USCIB’s Goldberg Contributes to New Report on Enhancing Security in Cross-Border Trade

Published on July 10, 2014

4781_image001The global economy has empowered criminals and terrorists on an international scale, and the challenge of preventing illicit activities has proven too much for traditional top-down government controls.

To better address this threat, the Stimson Center’s senior-level Partners in Prevention Task Force, which includes USCIB’s Senior Counsel Ronnie Goldberg, has endorsed seven proposals to advance both security and industry competitiveness by leveraging public-private partnerships that harness the power of decentralized, market-based incentives.

Targeted at U.S. industry and government stakeholders, the proposals follow an 18-month Stimson Center collaboration with hundreds of high-tech manufacturers and service providers, transport and logistics firms, and insurance providers. Several USCIB members participated in the project.

The report highlights several ways industry and government can collaborate to create a set of next-generation “trusted trader” regimes that facilitate legitimate trade and focus enforcement resources on higher-risk transactions. Task force members argue that “this is an especially opportune moment to act” on these ideas given the recently concluded WTO Trade Facilitation Agreement and the growing network of Mutual Recognition Arrangements among countries with Authorized Economic Operator programs. The report also addresses the U.S. government’s Export Control Reform Initiative, information sharing, the Terrorism Risk Insurance Program, and implementation of the International Trade Data System.

Goldberg commented: “There is increasing recognition of the importance of public-private partnerships.  Governments have a vital interest in bringing the experience, resources, and expertise of business to bear on the complex national security challenges posed by a globalized economy.”

“Ronnie brought deep subject matter expertise and an important ‘multi-stakeholder’ perspective to this effort,” said Brian Finlay, Stimson’s managing director. “She offered compelling insights on the economic, social, and security dynamics of an interdependent, global economy. She drew on many years of work with the OECD, International Chamber of Commerce, and ILO to convey the views of a diverse set of players at the national and international levels. But above all, she was a genuine pleasure to work with.”

Finlay continued: “We also benefited significantly from the expertise of some of Ronnie’s USCIB colleagues. In particular, we would like to thank Kristin Isabelli for her time and valuable substantive contributions. I hope Stimson has the good fortune to cross paths again soon with the USCIB team.”

Goldberg worked alongside task force chairman and former Under Secretary of Homeland Security for Science and Technology Jay Cohen (RADM, USN, Ret), as well as other industry leaders and national security experts, in shaping the recommendations.

An initiative of the nonprofit, nonpartisan Stimson Center, the group’s report was unveiled on May 29 in Washington, D.C. at an event featuring keynote remarks by senior White House advisor Rand Beers.

Staff contacts: Ronnie Goldberg and Kristin Isabelli

More on USCIB’s Customs and Trade Facilitation Committee