News Stories Archives

USCIB Warns of Potential Harms to the US Following China Tariffs

Published on May 14, 2018

In light of the Trump administration’s proposed Section 301 tariffs on Chinese goods, USCIB sent comments last week to the U.S. Trade Representative Robert Lighthizer expressing concern about the potential unintended negative consequences the proposed tariffs will have on sectors vital to the U.S. economy and jobs. With $587.6 billion in total goods trade in 2016, China has become the United States’ largest goods trading partner. China was also the third-largest export goods market in 2016 for the U.S., while U.S. foreign direct investment in China was $13.8 billion in 2016, with the ICT sector alone encompassing $4.34 billion.

“China can be a challenging market for U.S. companies to navigate. The ongoing intellectual property rights violations, forced technology transfer requirements, and state interventions harm U.S. companies, workers, consumers, and competitiveness,” stated Eva Hampl, who leads USCIB work on China-related issues.

Made in China 2025 is considered by many an indication that China plans on further advancing in developing their high-tech industries, such as robotics, advanced information technology, aviation, and new energy vehicles, with the eventual goal of global dominance in those industries through uncompetitive means such as subsidies.

“While this unfair advantage to Chinese companies in the high-tech industry space is a legitimate threat to U.S. leadership in innovation, continued engagement in the Chinese market is also very important for U.S. companies in terms of their ability to be globally competitive,” emphasized Hampl. “USCIB members are very concerned that these proposed tariffs will stifle the U.S. economy, and not achieve the important goal of changing China’s behavior in the space of emerging technologies and intellectual property rights. China’s threat of retaliation further exacerbates uncertainties caused by this proposed action. Rather than create more opportunities for U.S. business, sweeping tariffs will stifle U.S. agriculture, goods, and services exports and raise costs for businesses and consumers.”

The comments urge the administration to use this public comment period to listen to USCIB members and other U.S. stakeholders who explain how they will be directly affected by the proposed tariffs.

“It is critical that the administration exclude from its tariffs particularly those products that cannot feasibly be replaced by non-Chinese sources, where the harm of potential tariffs would fall more on U.S. businesses, workers, and exporters than on Chinese entities,” said Hampl. “Hurting American exporters cannot be the outcome of a process designed to level the playing field in China.”

USCIB has also signed on to a broader coalition of trade associations to echo these and other business concerns. Additionally, USCIB is co-sponsoring a reception later this week for Hill staff centered around the China 301 hearing, as well as NAFTA, celebrating Great American Jobs Supported by Trade. Finally, USCIB will also testify this week as part of the China 301 hearing.

USCIB Members Honored with Best Corporate Citizens Ranking

Published on May 14, 2018

Corporate Responsibility magazine has honored several USCIB members, including Microsoft, Lockheed Martin, AT&T, Qualcomm and Walt Disney, among many others, in their annual 100 Best Corporate Citizens rankings. Each year, the 100 Best Corporate Citizens ranking measures the success of the Brands Taking Stands movement by celebrating the most successful, most transparent companies that report on their responsible practices.

The 100 Best Corporate Citizens list documents 260 ESG data points of disclosure and performance measures—harvested from publicly available information in seven categories: environment, climate change, employee relations, human rights, governance, finance, and philanthropy & community support.

The list ranks the Russell 1000 Index and research is conducted by ISS Corporate Solutions.  There is no fee for companies to be assessed. Companies listed on the Russell 1000 are analyzed using publicly available records from their websites, annual reports, shareholder calls, media interviews, NGOs and government documents. The analysis includes 260 data points on environmental, climate change, human rights, employee relations, corporate governance, philanthropy, and financial performance.  As a result, companies are rated on what information they disclose as well as how much they disclose.

To compile this ranking, data is obtained from public records and not from private self-reports to the analysts. Many rankings ask companies to fill out surveys and questionnaires about internal operations and ours relies on what is publicly available. That’s because transparency and public commitments help make a company’s sustainability program stronger.

 

Download a copy of the complete list and information on the methodology here

View past 100 Best Corporate Citizens winners here

Russian Sanctions: How Do They Affect US Business?

Published on May 14, 2018

A roundtable discussion was held at HodgsonRuss LLP in New York on April 26, connecting participants from Washington DC, New York and Europe to discuss the recent sanctions imposed by the U.S. Government on Russia, enforcement trends and how they affect the way the U.S. companies conduct business around the globe. This event was organized by the Committee on Eastern Europe and Committee on International Trade of the International Section of the New York State Bar Association. Distinguished panelists included Charles R. Johnston (Citi), chair of USCIB’s Trade and Investment Committee, Michael Hendrix, OFAC, U.S. Department of Treasury, Hon. Volodymyr Yelchenko, permanent representative of Ukraine to the United Nations and Robert J. Leo, chair of the Committee on International Trade. The discussion was moderated by Serhiy Hoshovsky, chair of the Committee on Eastern Europe. Participation from overseas was moderated by Oleh Beketov, chapter chair in Kiev.

The event was opened by Paul M. Frank, a former chair of the International Section and renown international law attorney who hosted the event at his law firm. Yelchenko provided a comprehensive political context for the Russian sanctions and reminded of the events that led to their initial imposition in 2014. Michael Hendrix, an enforcement officer with OFAC, summarized legal framework for the sanctions and enforcement priorities as well as discussed some recent enforcement actions. Johnston provided a great overview of the sanction regime from the perspective of the U.S. business community, explaining in detail how the sanctions are becoming a new reality and how the U.S. businesses adapt to doing business. He also shared practical experiences of what U.S. companies do to stay compliant. Leo shared a very useful handbook on sanctions and practical tips on what to do when issues arise and how to stay compliant.

“The event provided a unique opportunity for the participants, especially those from the overseas, to ask questions and hear from people who are on the forefront of the sanction policy and enforcement at the US government, business community and legal profession,” said Nancy Thevenin, USCIB’s general counsel. “All panelists and participants agreed that the event was a major success and provided a great platform for sharing views and discussing major issues affecting business and legal community not only in the U.S. but also internationally.”

USCIB Sponsors National Governors Association North American Summit

Published on May 8, 2018
From left to right: CEO of Rassini Eugenio Madero; USCIB VP for Trade and Financial Services Shaun Donnelly; Woodrow Wilson Institute and former US Ambassador to Mexico Tony Wayne; National Restaurant Association Senior VP Steve Danon

USCIB was an organizational sponsor for the National Governor Association (NGA) North American Summit in Scottsdale, Arizona, which was held May 4-6. USCIB Vice President for Investment Policy and Financial Services Shaun Donnelly represented USCIB at the weekend event. The NGA welcomed Mexican Governors and Canadian provincial premiers to the North American Summit, which focused on strengthening North American economic integration and competitiveness in today’s and tomorrow’s global economy.

“The good news is that governors, across the three nations of North America, get it!” said Donnelly. “Open trade and investment gets broad bipartisan support across the political spectrum of governors and premiers. They welcome trade and investment and they welcome business comments and recommendations at these sessions. Obviously, NAFTA, and the on-going negotiations to update that key agreement, were key areas of discussion.”

Business speakers from the three countries were united in urging governors across all three countries, particularly in the U.S., to be strong advocates for a strong updated NAFTA with their national governments at this key moment in the negotiations.

USCIB member company representatives were also present and active at the NGA Summit with UPS, Walmart, and Squire Patton Boggs executives among the formal speakers/panelists to the Governors; CenturyLink was another active participant in the corridors. Former Canadian Foreign Minister Perrin Beatty, CEO of USCIB’s Canadian counterpart organization the Canadian Chamber was another clear pro-NAFTA, pro-business panelist in his presentation to the assembled governors.

Donnelly commented, “I come away from this NGA weekend with some key governors from across North America very encouraged that they really understand and support NAFTA and importance of an integrated, competitive North American economy/marketplace going forward. At this trilateral Summit, I saw none of the partisanship and anti-trade grand-standing we see so much of in Washington these days. The coming weeks will be critical for the fate of NAFTA and America’s governors, of wither party, can be important allies in convincing the Administration and, then down the road, the Congress to do the right thing…….and not to do the wrong thing on NAFTA.”

World Trade Week NYC Celebrates Gotham’s Export Champs

Published on May 8, 2018
Cheryl Moore of the New York Genome Center

USCIB is a longtime partner in the annual World Trade Week festivities in New York City. World Trade Week, a celebration of international commerce in cities across the United States, was launched by President Franklin Delano Roosevelt and brings together trade champions and companies of all sizes to mark the critical importance of cross-border commerce in promoting American competitiveness and global leadership.

World Trade Week NYC 2018 – despite the name, actually a full month of events and activities – kicked off this week with a high-level awards breakfast hosted by the Weissman Center for International Business at Baruch College, part of the City University of New York. Among the award honorees was the New York Genome Center, whose president and COO Cheryl Moore also served as the breakfast keynote speaker, providing an overview of New York’s efforts to foster growth in the life sciences industries.

Other businesses recognized for export success included Magnetic Analysis Corp., Innodata, Inc. and Classic Rug Collection, Inc. Empire State Development’s Global NY initiative was also honored, as was Irving A. Williamson, a member of the U.S. International Trade Commission, who was presented with a lifetime achievement award.

USCIB Vice President Jonathan Huneke served on the steering committee for World Trade Week NYC 2018. For a full list of World Trade Week events in and around New York City, click here.

Mulligan Joins BIAC to Push for Business Priorities at OECD

Published on May 4, 2018

USCIB Senior Vice President for Policy and Government Affairs Rob Mulligan was in Paris the last week of April attending Business at OECD (BIAC) and OECD Trade Committee meetings, which included dialogues with several OECD officials, including Director of the OECD Trade Directorate Ken Ash, OECD Deputy Secretary General Mari Kiviniemi, Head of the OECD Investment Division Ana Novik, and Head of the OECD Services Trade Division John Drummond, among others.

“BIAC’s meetings were integral in getting the business community on the same page regarding several issues, including possible accession to the OECD by Argentina, Brazil, Peru, Croatia, Romania and Bulgaria, BIAC’s upcoming work with B20 Argentina on joint meetings later this month in Paris, as well as the OECD release of a Trade Facilitation publication this summer,” noted Mulligan.

According to Mulligan, BIAC members also discussed BIAC talking points on the OECD’s draft Program of Work and Budget for 2019-20 (PWB), providing suggestions for inclusion of services trade, de-minimis, overcapacity, digital trade, cybersecurity, customs simplification for SMEs, trade distortions, international regulatory cooperation, and government procurement.  These were in addition to the points based on the BIAC Trade as a Priority for All paper approved by the Committee last year. At a subsequent OECD Trade Committee Meeting later that week, member countries provided feedback to the secretariat about the draft PWB and BIAC, represented by its Chair Cliff Sosnow, noting the areas it would like to see the committee focus on during this cycle, which aligned with many of the areas BIAC had suggested.  However, BIAC noted that the PWB did not seem to include further work on localization requirements and state-owned enterprises that continue to be key areas of concern for its members and encouraged the OECD to include this in their work plans going forward.

Mulligan also had the opportunity to attend the BIAC Roundtable on Data Localization, Digital Trade and Market Openness which enabled a dialogue among the 25 people around the table. Ash, who recently met with the Japanese business group Keidanren, emphasized his desire to understand the realities of business and digital trade issues and noted Keidanren’s plans to make digital trade a focus when they host G20/B20 in 2019.

Mulligan then joined Pat Ivory of the Irish Business Federation Ibec, in their capacities as vice chairs of the BIAC Trade Committee to provide overviews on the BIAC digital trade priorities.

“Members are increasingly voicing concerns about data localization requirements related to the impact on cybersecurity and the conflicts they can cause for highly regulated industries,” stressed Mulligan. “The impact of rapidly changing technology and the need for regulators to take approaches to digital trade that do not end up restricting trade, stifling innovation, and undercutting economic growth.”

BIAC members noted challenges they deal with when assessing where to do business and suggested that localization requirements that can increase security risks in some developing countries and can make it less likely for them to do business there.

USCIB’s Geneva Delegation Supports Innovation at World IP Day

Published on May 4, 2018

As part of USCIB’s Geneva Week, USCIB staff and members had the opportunity to participate in the annual World Intellectual Property Day on April 26 in Geneva to celebrate the role that intellectual property rights play in encouraging innovation and creativity. This year’s campaign celebrated women who are driving societal change and shaping “our common future” through innovation and creativity.

The USCIB delegation attended a reception sponsored by Mexico, Indonesia, South Korea, Turkey and Australia (MIKTA), an informal partnership created in 2013 on the sidelines of the United Nations General Assembly to support effective global governance.

“USCIB appreciated the opportunity to attend World IP Day and to support the importance causes of promoting intellectual property rights and bridging the gender divide in innovation,” noted Mike Michener, who leads USCIB’s Committee on Innovation and Intellectual Property. “USCIB’s goal within our recently revamped Intellectual Property and Innovation Committee is to improve our members’ global competitiveness as well as identify international initiatives to secure IP rights and promote innovation. World IP Day is an exemplary forum to help endorse our long-standing beliefs that intellectual property protection and innovation go hand-in-hand.”

 

OECD Tax Conference: Global Challenges in the Context of U.S. Tax Reform

Published on May 2, 2018

Washington, D.C., May 2, 2018 – Several months after the passage of the most fundamental U.S. tax reform law in over 30 years, what will the impact be on global companies – and on cross-border trade and investment? This is just one of the many questions to be discussed at a major June 4-5 conference in Washington, D.C.

The 2018 OECD International Tax Conference, which will take place at the Four Seasons Hotel, will provide a unique opportunity for business experts to interact directly with key leadership from the Organization for Economic Cooperation and Development, its Center for Tax Policy and Administration (CTFA), and senior tax officials from the United States and other OECD countries.

The conference is the 13th annual gathering on global tax policy developments convened by the United States Council for International Business (USCIB), in cooperation with the 35-nation OECD and its official private-sector advisory body Business at OECD (also known as BIAC). Details on the event are available at www.uscibtax.org.

“U.S. tax reform is but one piece of an increasingly complex puzzle of changing global tax rules that companies must navigate,” said USCIB President and CEO Peter M. Robinson. “As technology, business models and supply chains have evolved, it is more critical than ever to bring certainty to international tax rules, in order to promote global growth and avoid double taxation. This conference provides an unparalleled opportunity to learn about, and influence, the latest developments in the global taxation system.”

Keynote remarks at this year’s conference will be delivered by U.S. Council of Economic Advisors Chairman Kevin Hassett. Other speakers will include:

  • Pascal Saint-Amans – Director of the Center for Tax Policy & Administration, OECD
  • Grace Perez-Navarro – Deputy Director of the CTPA, OECD
  • Martin Kreisenbaum – Director General, International Taxation, Ministry of Finance, Germany
  • Brian Ernewein – General Director, Tax Policy Branch, Department of Finance, Canada
  • Mike Williams – Director, Business and International Tax, HM Treasury, UK
  • Lafayette (Chip) Harter – Deputy Assistant Secretary for International Tax Affairs, U.S. Treasury
  • Doug O’Donnell – Commissioner, Large Business and International Division, IRS
  • Mary Baine – Head, International Taxation, African Tax Administrative Forum
  • Will Morris – Chair, BIAC Committee on Taxation and Fiscal Affairs
  • Bill Sample – Chair, USCIB Tax Committee

About USCIB:

USCIB promotes open markets, competitiveness and innovation, sustainable development and corporate responsibility, supported by international engagement and regulatory coherence. Its members include U.S.-based global companies and professional services firms from every sector of our economy, with operations in every region of the world, generating $5 trillion in annual revenues and employing over 11 million people worldwide. As the U.S. affiliate of the International Chamber of Commerce, the International Organization of Employers and Business at OECD, USCIB provides business views to policy makers and regulatory authorities worldwide, and works to facilitate international trade and investment. More information is available at www.uscib.org.

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

Donnelly Speaks Up for Business at UN Trade Meetings

Published on May 1, 2018
Shaun Donnelly

USCIB Vice President for Investment Policy Shaun Donnelly single-handedly represented the views of the business community at last week’s meetings of the United Nations Commission on International Trade Law (UNCITRAL) Working Group III on Investor-State Dispute Settlement (ISDS).  The week-long meetings at UN Headquarters in New York were, according to Donnelly, “a painstaking death march through a draft UNCITRAL document on real or perceived problems with the existing ISDS system.” Eighty UN member governments (sixty of whom serve terms as full UNCITRAL members, plus 20 observer governments) were generally critical of the current systems and numerous NGO observers were always happy to chime in to attack ISDS investment arbitration and businesses which use those protections, reported Donnelly.

It fell to a relative handful of government delegations plus Donnelly and one European business representative, as well as fellow observer representatives from leading law and arbitration bodies such as the American Bar Association,  the American Society of International Law, and the American Arbitration Association to defend the well-established ISDS arbitration system.

“Clearly ISDS is under assault from NGOs and many developing countries,” said Donnelly. “The European Union and its member states are pushing hard for early negotiations on a new permanent multilateral investment court to replace the whole ISDS system.” Donnelly and other observers continued to emphasize in formal interventions and in corridor conversations with key delegations the proven strengths of the current ISDS system and, by implication, serious problems with some of the more state-dominated “reform” proposals.

“Frankly, it’s frustrating, “ Donnelly said, “to see UNCITRAL and many of its member governments so intent on rushing hell-bent to replace a proven system of independent, expert arbitrators to resolve complex investment disputes. Ideas from the EU and others to replace ISDS with some sort of state-dominated permanent court seem explicitly designed to be hostile to investors and are not helpful.”

UNCITRAL is scheduled to continue semi-annual WG meetings, alternating between Vienna and New York, and will be turning to debating specific alternative systems. These issues will need more attention from US and international business going forward, both at the sessions and intersessionally with national governments.

Goldberg Presents New Report on Global Compact on Migration

Published on May 1, 2018
USCIB Senior Counsel Ronnie Goldberg

The Federation of Uganda Employers (FUE) welcomed representatives of national and sub-regional employers’ organizations (EOs), including USCIB’s Senior Counsel Ronnie Goldberg from 16 countries in the East, Central and Southern Africa region to Kampala last week for their annual two-day conference.

Panel discussions explored themes of youth employment, regional integration and labor migration, with Goldberg, who attended on behalf of the International Organization of Employers (IOE), outlining the business perspective on the Global Compact for Safe, Orderly and Regular Migration, which will be adopted by the UN later this year.

Goldberg described ways in which the IOE and newly formed Business Mechanism to the GFMD were presenting business perspectives to the government negotiators. “Migration policy is not simply a political issue,” she noted. “Labor mobility is an economic necessity and skills mobility is central to the ability of companies to thrive and compete in global markets.”

The theme of this year’s conference, which was co-funded by the European Union, built on the Declaration from the 2017 event in Walvis Bay, Namibia.  Last week, the assembled EO leaders were joined by experts from the IOE, ILO and IOM to explore: “From Declaration to Action – Accelerating an enabling environment for youth employability and entrepreneurship”.

The keynote address was delivered by Chairperson of the FUE Nicholas Okwir, who was joined in the opening session by Jacqueline Mugo, secretary-general of Business Africa, Matthias Thorns, director of stakeholder engagement from the IOE and Jealous Chirove, employment specialist from ILO Dar es Salaam.

The second part of the two-day program considered best practices to address youth unemployment, as well as ways to foster youth and women’s entrepreneurship. Group sessions worked on a Road Map to identify and implement key areas for action, in line with the objective of the event.

IOE Vice-President for the ILO Mthunzi Mdwaba looked ahead to the 2018 International Labor Conference, with a comprehensive overview of the key matters of relevance to the Employers. He also updated the EOs on other ILO developments requiring concerted Employer engagement.