News Stories Archives

USCIB Weighs in With Treasury Secretary on Multinational Tax Rules

Published on May 30, 2017

USCIB and other industry groups are urging the Trump administration to push back against efforts in the G20 and other multilateral forums to circumscribe the U.S.’s ability  to tax overseas income of U.S.-based multinationals. USCIB, along with the Information Technology Industry Council (ITI), National Foreign Trade Council (NFTC) and U.S. Chamber of Commerce sent a joint letter to Secretary of the Treasury Steven Mnuchin requesting that the Trump administration take immediate action to ensure that tax principles that would adversely affect U.S.-based multinational companies and the rights of the United States to tax the income earned by such companies are not encouraged or endorsed by international bodies focusing on taxation rules, particularly those applicable to businesses operating in the digital economy.

The letter, in part, responds to the G7 Finance Ministers Communique on taxes which was released on May 13.  The multi-association letter urges the Treasury not to make any new commitments on taxes.  The letter also urges caution on expanding G20 commitments.  It also urges the Treasury to nominate a delegate to the UN Committee of Tax Experts stating that it is important to have a U.S. voice on this committee.  USCIB has learned that Treasury now intends to nominate a delegate to the UN Committee of Tax Experts.

The letter stated, “considerable pressure has been applied by other countries to modify the existing international framework of taxation laws in a way that would enhance the taxation rights of other countries at the expense of the United States and its interests. We are concerned that recently proposed “special measures” targeted at the digital economy, could reduce tax payments to the United States by U.S.-headquartered international companies and disadvantage U.S. companies attempting to compete overseas by increasing their tax obligations to the jurisdictions that adopt such measures.”

USCIB Mourns Passing of Long-Time Stalwart Joe Alhadeff

Published on May 30, 2017
Joseph Alhadeff

USCIB is mourning the death of a long-time USCIB supporter, colleague and mentor Joseph Alhadeff. A USCIB Board member and Vice Chair of the ICT Policy Committee, Alhadeff passed away on May 27, following a long and very brave battle with a serious illness.

In the ICT and digital economy sphere, Alhadeff was a superb ambassador for Oracle as Vice President, Global Public Policy and Chief Privacy Strategist, as he extended himself beyond his daily responsibilities there to also serve as USCIB’s ICT Policy Committee Vice Chair for more than 15 years, while also chairing the ICC Digital Economy Commission (since 2013, after serving as Vice Chair since 2002), and BIAC’s Committee on Digital Economy Policy (since 2009, having served as a Vice Chair).

In all of these capacities, he provided intellectual guidance, policy leadership and rigorous precision on all aspects of digital economy policy, with a special focus on privacy and security. Alhadeff helped to build consensus on challenging issues about which USCIB members had divergent views—applying his innate grace, wisdom, competence and ever-present humor. The breadth of his knowledge and his skill in applying it to help shape policies that benefitted a broad cross-sector of ICT Policy Committee members is an ongoing inspiration, as is his generous mentoring of young professionals—and even “established professionals.”

“Joe’s passing is all the more remorseful to USCIB because he has for so long been part of our ‘family,’” said USCIB’s President and CEO Peter M. Robinson.  Alhadeff began his career at USCIB in 1995 as director of e-commerce and legal counsel, at a time when USCIB was evaluating and then developing a practice to provide business leadership on issues related to use of the Internet.  “With USCIB serving as his launch-pad, we watched Joe steadily grow as such a highly respected and sought-after professional all over the world. Words can be inadequate at times like this to express our profound sadness about the passing of a dear friend and strong contributor to the global business community,” noted Robinson.

USCIB Urges Wider Business Role at UN Financing for Development Forum

Published on May 30, 2017

The second UN Financing for Development (FfD) Forum took place May 22-25 at UN headquarters in New York, serving as follow-up to the inaugural FfD Forum in 2015. The 2017 Forum provided impetus for the implementation of FfD outcomes and the delivery of means of implementation of the UN 2030 Sustainable Development Agenda, which includes the Sustainable Development Goals (SDGs).

The event featured expert segments on the seven action areas of the Addis Agenda, as well as other specific issues that UN member states mandated the FfD Forum to address. It also featured a dedicated dialogue with stakeholders, including business and industry.

Numerous business representatives took part both as panelists and speaking from the floor, including John Danilovich, secretary general of ICC and Ariel Meyerstein, senior vice president, corporate responsibility, Citi. USCIB Vice President for Energy and Environment Norine Kennedy gave remarks during the segment on trade, capacity building, technology and innovation,  noting the increasing role the private sector has been taking with regards to mobilizing finance, investment, solutions and expertise for sustainable development, as well as the increasing role of business in the evolution to an SDG-guided international framework of cooperation and implementation.

“Trade is a powerful vehicle for development, and it also creates a network for broad deployment of innovative technologies and knowhow,” Kennedy said. However, she acknowledged that much remains to be done to deliver practical results and to implement programs and enabling environments that will allow the business community to contribute more significantly, noting, “the level and scope of engagement need to be radically scaled up from business communities in developing countries.”

 

USCIB, Keidanren Discuss Trade and Investment

Published on May 30, 2017

USCIB’s Senior Vice President for Policy and Government Affairs Rob Mulligan and USCIB’s Director for Trade, Finance and Investment Eva Hampl recently attended a dinner hosted by Keidanren, Japan’s leading business group. Mulligan and Hampl joined Keidanren’s delegation of over 40 business leaders to discuss trade, investment and the mutual interests and areas of partnerships shared by USCIB and Keidanren. 

Mulligan gave a brief presentation on the role USCIB plays and highlighted areas where USCIB and Keidanren have worked together in the past. In addition to commenting on NAFTA, Brexit, WTO and China, Mulligan discussed comparable affiliate roles at BIAC and IOE as well as the joint work USCIB and Keidanren have done together such as the op-ed last year on the Trans Pacific Partnership and the recent China letter on cybersecurity. Mulligan also touched upon Keidanren and USCIB’s partnership with regards to the Major Economies Business Forum (BizMEF) and the extensive collaboration between USCIB and Keidanren on climate change.

“USCIB greatly appreciates our productive partnership with our Japanese colleagues at Keidanren and we look forward to strengthening our ties on trade and investment issues,” said Mulligan.

Robinson Joins 200 Business Leaders in Letter on International Affairs Budget

Published on May 30, 2017

Ahead of the release of President Trump’s 2018 proposed budget that is looking to cut up to 31 percent of the State Department and USAID budget, USCIB’s President and CEO Peter M. Robinson joined over 200 business leaders in sending a letter to Secretary of State Rex Tillerson. The letter urged Tillerson to strongly support the State Department and U.S. Agency for International Development Budget.

The letter emphasized the importance of partnerships between the private sector and these agencies, noting that these agencies catalyze and leverage private sector expertise and resources to create sustainable solutions at scale on a range of challenges such as energy, health, and agriculture.

“America’s global economic leadership also embodies our country’s values – promoting economic freedom, prosperity, and entrepreneurship that can mitigate the drivers of violent extremism in the world today. In today’s global economy, we have significant opportunity to strengthen the State Department, USAID, and our development agencies and the capacity to partner with the private sector to address global challenges and to expand opportunity,” stated the letter.

The letter was also covered by CNN Money and the Wall Street Journal (subscription log-in required).

Giblin Attends ICC Customs, Trade Meetings in Dubai

Published on May 22, 2017
USCIB’s Megan Giblin (center, second row) along with business colleagues from ICC-UAE in Dubai

USCIB’s Director for Customs and Trade Facilitation Megan Giblin was in Dubai last week attending ICC-UAE and Dubai Chamber of Commerce and Industry co-hosted Customs and Trade Facilitation Forum. The Forum discussed a wide range of topics including Trade Digitalization, the World Trade Organization (WTO) Trade Facilitation Agreement (TFA) and the Gulf Cooperation Council value-added Tax Implementation Framework.

The UAE was the first country in the Arab world to ratify the WTO’s TFA, which entered into force earlier this year and promises to boost global trade flows by over $1 trillion this year and generate opportunities for easier, less costly cross-border trade.

According to Giblin, this meeting was a tremendous opportunity for the international business community to discuss the role the private sector can play to ensure effective implementation of the TFA and its potential for investment and regional supply chains.

B20-L20 Delivers Joint Statement to G20 Labor Ministers

Published on May 22, 2017

The B20 and L20 presented a joint statement at a G20 labor ministers dinner on May 17 in Bad Neuenahr, Germany which was attended by USCIB Senior Counsel Ronnie Goldberg. Linda Kromjong, IOE’s secretary general and Sharan Burrow, ITUC’s secretary general, jointly presented the statement to the ministers and all B20 and L20 signatories at the handover ceremony  to German Federal Minister of Labor and Social Affairs Andrea Nahles.

This year’s statement builds on the IOE/BIAC and ITUC/TUAC statement from last year with a specific focus on sustainable growth, decent work and social cohesion in the digital economy.

In line with the key priorities of the G20 German presidency, the statement reinforces the important role that business and labor have in shaping policies that not only maximize the opportunities for employment creation, but that also minimize adverse effects on employment and working conditions. Given the special focus on the digital economy, the recommendations in the statement are linked to the impact of technological change on employment and call on governments to grab the chances that technological change presents as well as address its challenges.

To harness the opportunities of technological advancements, it is important that technology is widely diffused so that businesses can maximize the potential of its use. This will facilitate the creation of an agile business environment that can offer growth of income opportunities in all of its forms in the formal economy.

Going forward, the workforce using new technology needs to be well equipped for the new digital age. This requires taking a fresh approach to education, up- and re-skilling and ensuring that all individuals have access to opportunities that allow them to continually upgrade their skills. The B20/L20 joint understanding on key elements of quality apprenticeships, the G20 Skills Strategy as well as the G20 Apprenticeship Initiative clearly have a key role to play in modernizing existing training systems.

Countdown to UN High-Level Political Forum: Ending Hunger, SDG 2

Published on May 22, 2017

This year’s United Nations High-Level Political Forum (UN HLPF) on sustainable development will be held from July 10-17 under the auspices of the Economic and Social Council. The theme for the forum will be “Eradicating poverty and promoting prosperity in a changing world” focusing in part on Sustainable Development Goal 2: ending hunger and ensuring access by all people to safe, nutritious and sufficient food all year round.

As part of USCIB’s countdown to the UN HLPF, USCIB is highlighting some initiatives that its member companies are working on to end poverty in all its forms, while subsequently meeting the SDG targets set by the UN. These examples can be found on USCIB’s Business for 2030 website. An impactful project to note is one initiative by McDonald’s and Sustainable Coffee. McDonald’s supports sustainable agricultural production at every aspect of the supply chain. Teaming up with the international non-profit TechnoServe and the Sustainable Commodities Assistance Network (SCAN), McDonald’s trains 13,000 farmers in Guatemala and Central America to produce coffee more sustainably while simultaneously increasing crop yields. This added technical assistance will help strengthen the local economy, improving the lives of many smallholders.

Tune in for next week, when we will highlight company initiatives on Goal 3: ensuring healthy lives and promoting well-being for all at all ages.

USCIB’s Customs Chair Writes on Trade, Customs in Adam Smith Project

Published on May 22, 2017

USCIB’s Customs and Trade Facilitation Committee Chair and Vice President of Government and Trade Relations at Hanesbrands Jerry Cook recently posted commentary on the Adam Smith Project blog (formerly known as the American Shipper column).

The commentary urges all World Trade Organization (WTO) members to take necessary steps to join the World Customs Organization’s (WCO) Harmonized System Convention or commit to using it as the basis of the national customs tariff as well as commit to implementing the 2017 Harmonized System in a timely manner, seeking technical assistance from the WCO when applicable.

“The business world likes certainty,” Cook writes. “Understanding the factors that go into such landed costs as customs duties are key to assessing production and distribution costs. If there is any uncertainty over the common language of international trade, it can mean headaches, delay and extra cost.”

Read his commentary on the Adam Smith Project.

USCIB Delivers Statement on Trade Deficit at Commerce

Published on May 22, 2017
Eva Hampl delivers testimony on behalf of USCIB at U.S. Department of Commerce

As the Trump administration seeks to reorient U.S. trade policy toward bilateral agreements, bilateral trade deficits have been put forward as a marker of the health — or lack thereof — of U.S. commercial relations with a given country. USCIB has taken up this issue in a recent statement to the Department of Commerce, as well as a public testimony that was delivered by USCIB’s Director for Investment, Trade, and Financial Services Eva Hampl on May 18 at the Department of Commerce.

In her testimony, Hampl emphasized USCIB’s view that trade deficits are a product of broader macroeconomic factors, not trade policy, and that the trade balance should not be viewed as a straightforward indicator of a country’s economic health. “While it is useful to address trade barriers that impede access for U.S. goods and services exporters to specific markets, we should not set up bilateral trade balances as the metric of successful trade policies,” she said.

Hampl concluded with 5 USCIB recommendations for the Administration:

  • Examine the trade deficit within the broader set of macroeconomic factors that determine it and include all elements of trade in the analysis, instead of focusing solely on bilateral manufactured goods trade balances.
  • Work with experts around the U.S. Government, international organizations, and academia to get the best data possible to guide the best policy making. We need much better measurements of real trade flows and value added, including in complex global supply chains and in services. We also need better data on FDI flows, both inward and outward.
  • Move aggressively to open foreign markets, and identify and combat foreign trade barriers to increase U.S. exports and improve our trade balance. We support the use of appropriate enforcement tools including the WTO, bilateral and regional trade agreements, U.S. trade laws, and efforts to open those markets and to combat illegal foreign subsidies and dumping into the United States.
  • Accelerate U.S. Government “commercial diplomacy” efforts to support U.S. companies competing to win deals overseas.
  • Reform the U.S. Government’s economic policies, including tax reform, regulatory reform, and energy development, to bolster the competitiveness of our firms, allowing them to win more and bigger deals overseas.