ICC Warns of Harmful Regulatory Proposals for Internet Backbone

Published on September 6, 2011

Market-based incentives are fostering investment in local network capabilities that reduce the need for higher-cost international traffic

The International Chamber of Commerce (ICC), USCIB’s affiliate, today released a Discussion Paper highlighting how a commercially-driven framework has allowed Internet Backbone Interconnection Agreements to fuel the massive growth of the Internet across the globe.

The paper, written by the ICC Task Force on Internet and Telecoms Infrastructure and Services (ITIS), highlights data from various sources. This includes a 2011 Analysis Mason study that shows how commercial interconnection agreements negotiated in a market-based regulatory environment have resulted in more efficient global network usage, improved network performance, international expansion and investment growth.

One important example analyzed in the paper, is the evolution of Internet Exchange Points (IXPs) locations. From international Internet traffic originally being routed through IXPs located primarily in the US 15 years ago, the deployment of large numbers of IXPs quickly spread to OECD countries. Today, IXPs are increasingly being established and expanded in emerging markets.

Despite the huge success of the private-sector driven commercial model for Internet Backbone Interconnection Agreements, there have been proposals to regulate these agreements. Proposals appear to be based on the assumption that regulation would promote further investment within particular countries. The ICC paper explains that this view ignores the pertinent facts and policy options. In turn, the paper demonstrates that the desired new investments are actually being enabled and stimulated by the existing commercially-driven framework. In particular, although current proposals to regulate Internet infrastructure agreements would aim to shift costs between countries, the commercial model already is adapting to, and even enabling, the more fundamental shift in the underlying traffic flows that result in those costs. That is, market-based incentives are fostering investment in local network capabilities that reduce the need for higher-cost international traffic.

More on USCIB’s Information, Communications & Technology (ICT) Committee

ICC website

Business Groups Urge No More Delays on Trade Pacts and Adjustment Assistance

Published on July 7, 2011

Yesterday USCIB joined with 33 other business groups on a letter to the leaders of the Senate Finance Committee and House Ways and Means Committee urging them to move forward on the three pending U.S. free trade agreements with Colombia, Korea and Panama, and to work out an agreed approach to Trade Adjustment Assistance (TAA).

“We applaud the work of your committees for taking these next steps toward approval of these vital agreements,” the groups wrote. “To level the playing field for trade, create American jobs, and reaffirm U.S. leadership, [we] urge the swift approval of the three agreements and resolution of the differences over Trade Adjustment Assistance by both the House and Senate.”

Today both committees were expected to hold mock markups to move the approval process forward. The House implementing bill does not include TAA, while the Senate implementing bill does.

Staff contact: Rob Mulligan

Business association letter

More on USCIB’s Trade and Investment Committee

Backing for Junior Chambers International Summit

Published on July 5, 2011

The Jaycees’ international summit took place in New York in June.

Fresh from successfully organizing the 7th World Chambers Congress in Mexico City, USCIB’s affiliate the International Chamber of Commerce and its World Chamber Federation lent support to the annual summit of Junior Chamber International, a worldwide federation for entrepreneurs and professionals under the age of 40, last month in New York City.

The Jaycees summit highlighted how strategic partnerships can be implemented at the local level to build a better world and make advances towards the Millennium Development Goals – eight internationally agreed goals to alleviate poverty by 2015.

Speakers at the summit included USCIB President and CEO Peter Robinson. Speaking at the summit opening plenary, entitled “Global Collaboration to Implement the UN MDGs,” Mr. Robinson underscored the power of businesses to positively impact the communities where they operate.

Also addressing the Jaycees was Aaron Nelson, president and CEO of the Chapel Hill-Carrboro (N.C.) Chamber of Commerce. In a breakout session on sustainability, Mr. Nelson gave concrete examples of how the power of business can be harnessed to create positive change.

The summit concluded with a resolution to undertake sustainable projects that would advance the UN Millennium Development Goals in respective Junior Chamber International member communities.

Mr. Robinson’s remarks

JCI website

ICC website

Conference Highlights Need for Cooperative Efforts to Rein in Health Care Costs

Published on June 22, 2011

“Governments and the private sector need to work together to offer innovative solutions for health promotion, disease prevention and treatment that will help address the rising health care costs and challenges presented by aging populations,” stated Nicole Denjoy, chair of the Task Force on Health Care Policy at the Business and Industry Advisory Committee to the OECD, USCIB’s affiliate. “We need to move from sick care to health care.”

Speaking to over 100 senior policymakers, business figures and academics gathered in Paris for the OECD 50th Anniversary Health Conference on meeting the challenges of aging and multiple morbidities, co-sponsored by BIAC, Ms. Denjoy, the secretary general of COCIR (European Coordination Committee of the Radiological, Electromedical and Healthcare IT Industry), highlighted the business case for greater collaboration with governments to generate improved health outcomes and greater efficiency in the future.

She said businesses, as contributors to health budgets, employers of older workers, and providers of goods and services, have a vested interest in reducing the overall cost burden, while increasing efficiency and quality of health care. Close cooperation with governments will help incentivize the business community to make the necessary investments today that will yield the solutions needed for tomorrow.

Despite big improvements in health since the founding of the OECD in 1961, health policies have been slow to adapt to new challenges. Ms. Denjoy said. Addressing the health care needs of the future requires urgent attention from policymakers as the transformation for the health care system takes years to develop and implement.

International Chamber of Commerce Reelects Senior Leadership

Published on June 21, 2011

The ICC World Council met this month in Mexico to elect leaders of the world business organization: Gerard Worms (left), ICC chairman, and Harold McGraw III, ICC vice chairman.

USCIB’s affiliate the International Chamber of Commerce (ICC) has re-appointed Gerard Worms as chairman for a two-year term starting July 1, with ICC Vice ChairmanHarold McGraw III, set to succeed him in 2013. Mr. McGraw, the chairman, president and CEO of The McGraw-Hill Companies, currently serves as chairman of USCIB.

The ICC World Council made the decision in a meeting following the 7th World Chambers Congress, June 8-10 in Mexico City. ICC Honorary Chairman Victor K. Fung has also been re-appointed for a further one-year term.

More than 70 business members of the ICC World Council – the organization’s main governing body – met to elect the new leaders as well as two new members of ICC’s Executive Board: Sheikh Khalifa bin Jassim bin Mohammad Al-Thani of Qatar and Pedro Aspe
of Mexico.

USCIB’s Ronnie Goldberg Reelected to ILO Governing Body

Published on June 21, 2011

At the International Labor Conference, L-R: John Kloosterman (Littler Mendelson), Kristin Lipke (U.S. Department of Labor), USCIB’s Ronnie Goldberg and John Oswalt (Procter and Gamble).

USCIB Executive Vice President Ronnie Goldberg was re-elected to the Governing Body of the International Labor Organization (ILO) in a vote conducted in Geneva last week . The Governing Body is the executive council of the ILO and meets three times annually in Geneva. It takes decisions on policy and establishes the program and budget of the 183 member states of the ILO.

The ILO is a tripartite United Nations agency where representatives of government, business and labor work jointly to promote greater respect for labor rights around the world. USCIB represents the interests of American business in the ILO through its role as the U.S. affiliate of the International Organization of Employers (IOE). Ms. Goldberg also serves as the IOE’s regional vice chair for North America.

In a related development, Adam Greene, USCIB’s vice president for labor and corporate responsibility, was recently named by Secretary of Labor Hilda Solis to the National Advisory Committee for the Labor Provisions of U.S. Trade Agreements, which provides advice on the implementation of labor chapters of U.S. free trade agreements as well as the North American Agreement on Labor Cooperation.

The ILO Governing Body election took place during the annual International Labor Conference, at which a new international labor standard aimed at improving conditions for domestic workers was adopted. The U.S. employers’ delegation to this year’s ILO conference was headed by Edward E. Potter, director of global workplace rights with The Coca-Cola Company and chair of USCIB’s Labor and Employment Policy Committee. In addition to Ms. Goldberg and Mr. Greene, the delegation included John Kloosterman (Littler Mendelson), Kent McVay (Coca-Cola), John Oswalt (Procter and Gamble) and Kevin Sullivan (IBM).

Other outcomes of this year’s conference included guidance on labor inspection and a decision to negotiate an ILO recommendation on social security. Heads of state and government addressing the delegates included German ChancellorAngela Merkel and Russian Prime Minister Vladimir Putin.

Staff contact: Adam Greene

More on USCIB’s Labor and Employment Policy Committee

ILO website

Global Business Welcomes UN Special Representatives Human Rights Report

Published on June 10, 2011

The three main pillars of USCIB’s global business network – the International Organization of Employers, the International Chamber of Commerce, and the Business and Industry Advisory Committee to the OECD – have joined together in welcoming the final report of Professor John Ruggie, UN Secretary General Ban Ki-moon’s special representative on business and human rights. On May 30, after six years of study and consultation, Professor Ruggie released his final report, entitled “Guiding Principles on Business and Human Rights: Implementing the United Nations ‘Protect, Respect and Remedy’ Framework.”

In their joint statement to the UN Human Rights Council, the IOE, ICC and BIAC thanked Professor Ruggie for “his dedication and tireless effort over the past six years to develop open communication and consensus among all stakeholders, which has been a significant part of his contribution to the way in which these issues are addressed.”

They continued “Our organizations have actively engaged with [Professor Ruggie] throughout his mandate by participating directly in numerous consultations, submitting joint comments or statements on various reports produced by the mandate, and engaging in ongoing communication with [him] and his team during the entire mandate.”

The groups endorsed the report’s “Protect, Respect, Remedy” framework, which clearly distinguishes the roles of national governments and third parties, including business enterprises, in upholding human rights.

The joint statement said: “Business is committed to meeting its responsibility to respect human rights and we fully expect that states and other stakeholders will do the same within their respective duties and responsibilities. Our organizations also remain committed to working with the UN Human Rights Council and other stakeholders during the implementation phase to advance the framework and the Guiding Principles in a way that creates a sense of ownership of the issues among our members, which we see as a key success factor in dissemination and adoption of the Principles.

Staff contact: Adam Greene

More on USCIB’s Corporate Responsibility Committee

ICC Denounces G20 Rise in Protectionism

Published on June 3, 2011

USCIB’s affiliate the International Chamber of Commerce (ICC) is urging G20 leaders to keep markets open to trade, following worrying results from a recently released WTO-OECD-UNCTAD report that G20 countries are increasing protectionist measures.

The joint report by the World Trade Organization (WTO), the Organization for Economic Cooperation (OECD) and United Nations Committee on Trade and Development (UNCTAD) on G20 trade and investment measures, released May 24, 2011, found that more new trade restrictive measures have been implemented in the past six-month period than in any previously reported period. From October 2010 to April 2011 alone, G20 members implemented 30 new export restrictions.

This occurred despite the G20’s reaffirmation at the 2010 Seoul Summit to resist protectionism until the end of 2013. G20 leaders had agreed early that year, at their Toronto Summit, to withdraw any protectionist measures in the pipeline, including export restrictions and WTO–inconsistent measures for stimulating exports. The WTO-OECD-UNCTAD report reveals that the exact opposite is taking place.

The joint report further confirms an ICC-commissioned study, released by the Peterson Institute for International Economics in 2010, stating that all G20 countries have implemented protectionist trade measures since 2008. Concerns in the global business community about this protectionist trend have prompted ICC to put into place its own indicator to monitor market openness. The Open Market Index will provide an annual ranking of the 50 top-trading countries by order of their openness to trade and investment. This private sector indicator to monitor protectionism will be launched ahead of the G20 Summit – being held in Cannes, France on November 3-4, 2011.

Staff contact: Rob Mulligan

More on the ICC-commissioned study by the Peterson Institute for International Economics

More information on Global Trade Alert

More on USCIB’s Trade and Investment Committee

Business Calls on OECD to Promote Updated Guidelines for MNEs in NonAdhering Countries

Published on May 25, 2011

“Convergence of corporate social responsibility standards between countries adhering, and those not adhering, to the OECD Guidelines for Multinational Enterprises must be reached in order to create a true level playing field in the markets where multinational companies operate,” said Mr. Winand Quaedvlieg, chairman of the International Investment and MNE Committee at USCIB’s affiliate BIAC, the Business and Industry Advisory Committee to the OECD.

Speaking on the occasion of the 2011 OECD Ministerial Council Meeting, Mr. Quaedvlieg highlighted the OECD business community’s views on ministers’ adoption of the update of the OECD Guidelines. BIAC has been actively involved in the discussions since the beginning of the update. Many different stakeholder views have been expressed, and the final text represents a balanced outcome that BIAC can accept.

“The updated Guidelines introduce substantial new provisions in certain areas such as human rights, due diligence, and supply chains” said Mr. Quaedvlieg. “However, the nature of the Guidelines remain unchanged, namely, that they are voluntary recommendations from governments to companies,

“Naturally, it will take time and effort for companies to become familiar with all of the complexities the updated Guidelines, and then to implement them, but the business organizations in BIAC are committed to fulfilling our role in supporting this implementation process. The OECD needs to do its part by working closely with governments in order to promote in non-adhering countries the introduction of CSR standards comparable to the Guidelines.”

On this occasion, BIAC also issued a statement detailing its views on the updated Guidelines, available here.

Cooperation Key to Maximizing Internet and ICTs ICC Tells UN Commission

Published on May 23, 2011

When it comes to development of the Internet and other information and communication technologies (ICTs), business stands at the forefront – as a dynamic innovator, investor and user. This was the message delivered by Herbert Heitmann, chair of the Commission on E-Business IT and Telecoms at USCIB’s affiliate, the International Chamber of Commerce. Mr. Heitmann, executive vice president, external communications, Royal Dutch Shell, spoke at the UN Commission on Science and Technology for Development (CSTD) today in Geneva.

Addressing the opening ceremony of the 14th session of the CSTD, Mr. Heitmann said: “From fast-tracking literacy rates to enhancing agricultural productivity, every day the products and services business develops are helping to empower and improve the lives of millions of people around the globe.”

Mr. Heitmann told delegates that when the right conditions are put in place, the private sector can play an important role building infrastructure and delivering required goods.

“Business contributes to establishing enabling environments through education initiatives, promoting innovation and creativity, public – private research and development partnerships,” he said.

UN Under Secretary General’s letter confirms strong business input into Internet Governance Forum preparations

ICC and its Business Action to Support the Information Society (BASIS) initiative have welcomed the recent announcement by UN Under Secretary General, Sha Zukang confirming continued strong representation of business in the Multistakeholder Advisory Group (MAG) that will steer preparations for the 6th Internet Governance Forum (IGF) – an open forum for policy dialogue on issues of Internet governance.

Mr Sha’s letter recognized the proven expertise and balanced representation of Internet stakeholders in the MAG including governments, business, civil society and the Internet technical community. Commending the MAG’s valuable contribution to IGF preparations each year, he said: “The MAG has more than proven its worth and the successful meetings that have been held in Athens, Rio de Janeiro, Hyderabad, Sharm-El-Sheik and Vilnius are [testament] to the work of its members.”

The MAG – a special advisory group to the UN Secretary General – is made up of representatives from all Internet interest groups.

To see a modified list of business representatives of the MAG and to read more on ICC’s website, click here.

To read Mr. Heitmann’s speech at CSTD, please click here.