News Stories Archives

U.S. Business Hails Paris Climate Pact’s Imminent Entry Into Force

Published on October 6, 2016

COP 21 Paris 2015 logoNew York, N.Y., October 6, 2016 – The United States Council for International Business (USCIB), which represents American business views to the United Nations and other international bodies, applauded the crossing of a key threshold for entry into force of the landmark Paris Climate Agreement, following its ratification by a critical mass of the world’s greenhouse gas-emitting nations. Looking ahead to the next major UN climate meeting in Marrakesh next month, USCIB called on UN member governments to work with the private sector in implementing the historic pact.

“This is a major accomplishment, and it paves the way for greater cooperative action to effectively address climate change in the years ahead,” said USCIB President and CEO Peter M. Robinson. “To do so will require close collaboration between governments and the private sector, from which so many of the technological innovations and investments to deal with climate change will come. USCIB and our global business partners have contributed mightily to this effort, and we are fully prepared to ramp up business support and engagement once effective systems of private-sector consultation are put in place at the national and international levels.”

Agreed at the COP21 Summit in the French capital last December, the Paris Agreement sets out a global plan for reducing heat-trapping emissions of carbon dioxide and other greenhouse gases from 2020 onward, with long-term targets through the end of the century. It is built on nationally determined pledges by nearly all countries. Yesterday, the European Parliament reached consensus on EU-wide ratification, pushing the needed number of countries and collective emissions past the threshold for entry into force.

Unlike its predecessor, the Kyoto Protocol, the Paris accord engages all countries in climate action under an international cooperative framework on mitigation, adaptation and resilience. It requires periodic reporting and review of governmental actions, based on a foundation of national pledges and actions, while calling on countries to set progressively more ambitious greenhouse gas reduction targets at five-year intervals.

“USCIB members were on hand at COP21 in unprecedented numbers to demonstrate their commitment and stake in the accord, and we are confident that this engagement will continue,” said Robinson. “USCIB is ready to strengthen its involvement with the UN process to build long-term cooperation for practical and cost-effective results.”

In its over 20 years of involvement in the UN Framework Convention on Climate Change (UNFCCC) process, USCIB has emphasized that the linchpin for successful implementation will be private sector involvement at national and global levels, according to Norine Kennedy, USCIB’s vice president for environment and energy.

“Governments will look to business for technical advice, as well as finance, investment and implementation, and we are ready to step up,” Kennedy said. “Important unfinished business remains in elaborating the Paris Agreement and building its support structure, which would be made stronger with business input. In particular, the agreement will need to provide more clarity on how markets and the private sector can contribute.”

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. With a unique global network encompassing the International Chamber of Commerce, the International Organization of Employers, and Business at the 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

How and Why to Rethink Data Fow Restrictions

Published on September 28, 2016

Digital_economyTaking part in discussions on the latest developments in world trade at the World Trade Organization’s Public Forum in Geneva this week, the International Chamber of Commerce (ICC) has signaled increasing business concern regarding countries that impose restrictions on cross-border data flows without considering the impact on their respective economies and small- and medium-sized enterprises (SMEs) that make up 95 percent of enterprises globally.

In a new set of recommendations issued today at the Forum, ICC calls on policymakers to consider the detrimental effects to GDP growth from applying blanket restrictions and highlights the importance of creating trusted environments to better enable use of information and communication technologies (ICTs), and related data flows, on which companies of all sizes rely.

The flow of digital information is a key driver of economic development and inclusive growth by raising productivity, increasing efficiency, broadening participation in and facilitating access to markets not least for developing-economy businesses.

Over the last 10 years data flows are estimated to have raised world GDP by at least 10% and today exert a larger impact on GDP growth than trade in goods.

“The Internet and Internet-enabled services, which rely on cross-border data flows, are vital for companies across all sectors of the economy and are particularly critical for small- and medium-sized enterprises,” the ICC paper says. “Access to digital products and services, such as cloud applications, provides SMEs with cutting edge services at competitive prices, enabling them to participate in global supply chains and directly access customers in foreign markets in ways previously only feasible for larger companies.”

To help policymakers address negative implications for growth from blanket restrictions to data flows, the new ICC primer outlines seven steps that governments can take to ensure citizens and companies realize the full potential of the Internet as a platform for innovation and economic growth.

The recommendations are:

Build trust

This can be done by ensuring that users have appropriate control and practical mechanisms with regard to how personal data is used, and the companies to which they entrust their data should adopt recognised and applicable best practice to ensure that the data is appropriately secured as technology and services evolve.

Promote the establishment of a new trade principle

This should include the underlying objective of allowing the flow, storage, and handling of all types of data across borders, subject to privacy and security laws and other laws affecting data flow covered under GATS article XIV.

Be non-discriminatory

Certain compelling public policy issues – including privacy and security – are recognised as possible exceptions and may form a legitimate basis for governments to place some limits on data flows if they are implemented in a manner that is non-discriminatory, is not arbitrary, is least trade restrictive, and not otherwise a disguised restriction on trade.

Include relevant players and show consistency

Any limits on cross-border data flows for privacy and security objectives should be consistent with GATS obligations, and include all relevant players and are equally applied.

Promote coherence

This can be done through national rules and regulations that affect the movement of goods, services, and information across borders.

Support the Internet’s enabling role

Especially for SMEs to grow and participate in global trade.

Ensure any regulatory measures which limit data flows are necessary to accomplish the recognised and compelling public policy objective

Measures should be the least trade restrictive policy alternative needed to effectively address the issue, not be arbitrary or discriminatory, and not be disguised restrictions on trade in services.

Read Trade in the digital economy: A primer on global data flows for policymakers

ICC New York Conference Explores Regional Arbitration Landscape

Published on September 22, 2016

ICCNewYorkConferenceOver two hundred practicing lawyers, corporate counsels, dispute resolution practitioners and academics from around the world participated in the 11th International Chamber of Commerce (ICC) New York Conference on International Arbitration on September 14, 2016.

The high-level event proved to be a successful blend of thought-provoking discussions and stimulating networking opportunities for professionals wanting to keep pace with the latest North America arbitration trends.

The one-day conference kicked off with speeches from ICC International Court of Arbitration President Alexis Mourre and ICC Court Secretary General Andrea Carlevaris. During his address, Mourre outlined principle objectives and long-term vision for the Court.

“With more than 200 registered delegates, the ICC North American regional conference held in New York is a testament to the continuous growth of our workload in the United States, Canada and Mexico. This conference is already the main arbitration event in the region and we look forward to it becoming even more successful in the years to come,” said Mourre.

Finding balance in institutional reform

The first item on the agenda was a discussion on the series of reforms recently adopted by the Court. These changes are part of an on-going strategy that aims to modernise and enhance transparency and predictability procedures in ICC Arbitration. However, these policies bring to light questions regarding the role of an arbitral institution, its tools made available to satisfy users’ needs and appropriate methods of regulation. Expert opinions and perspectives were debated by the panel comprising leading arbitration practitioners. Each made comments as to whether or not the reforms sufficiently meet user expectations. Global Chief Litigation Counsel at GE Oil and Gas, Michael McIlwrath, said: “It feels as though the past four years have seen more changes in the practice of international arbitration than the previous 40. But more progress remains to be made.”

Confronting problems of parallel proceedings

While simultaneous proceedings are by no means a new phenomenon, they have become increasingly more commonplace. Parallel arbitrations between the same or closely related parties; multiple arbitrations in a series of vertical contracts; civil suits in one or more courts; even criminal investigations and prosecutions have progressively turned into companions to international arbitration. The second conference panel explored how international arbitration and other dispute resolution mechanisms work together, and at times conflict, in managing the many facets of a complex case. Panellists provided insight and effective strategies to employ when dealing with such complexities.

Challenges of witness testimony

The final panel dealt with the flaws in witness testimony. Although it is commonly presented in international arbitration, cognitive science has demonstrated the unreliability of human memory. The panel explained the contemporary scientific understanding of witness recall and whether the implications of this research present a problem in arbitration procedures. When discussing how arbitration practice can improve arbitrators’ ability to reliably determine facts, Associate Professor at John Jay College of Criminal Justice and the City University of New York, Deryn Strange, voiced her thoughts on changes that should be made. She said: “Memory evidence should be treated in similar ways to biological evidence – protected from any distorting or contaminating influence at every step of the judicial process.”

The conference concluded with an interactive mock plenary session. The exercise celebrated the Court’s inaugural working session in New York City, which took place on September 15-16, 2016. In the more than 90-year history of the Court, this is only the second occasion where the full Court met outside of its Paris headquarters – the first having occurred only recently in Hong Kong on June 30, 2016.

Court working sessions include a ‘regular’ plenary session – a monthly meeting, deciding on challenges against arbitrators and scrutinising draft awards in cases with states or state entities as parties, and draft awards reached by majority.

Court working sessions also include sessions on Court activities of the previous 12 months, and sets out objectives for the following year. Reports on the Court’s activities and future work were presented by Mourre and Carlevaris.

The two-day working session concluded with a roundtable discussion. The secretariat and Court vice presidents announced their first conclusions on the Court’s recently-introduced practices. These practices comprise communications of reasons on Court decisions; the publication of arbitrators’ names on the ICC website; diversity in the appointment of arbitrators; tackling delays in the timely submission of awards; and reduction and uplift of arbitrators’ fees.

For those who were not able to attend the sold-out ICC New York conference, the next regional arbitration event is the ICC Miami Conference, 13-15 November 2016 .

USCIB Explains Business’s Role in the SDGs at Concordia Summit

Published on September 22, 2016
Peter Robinson
Peter Robinson

It is a fact that official development assistance alone will not be enough to raise the trillions of dollars needed to finance the United Nations Sustainable Development Goals (SDGs). Private investment, then, will be necessary for moving from the “billions-to-trillions” needed to realize the 2030 Development Agenda. Marshaling resources for the world’s development goals has become one of the most important issues of our time.

USCIB, the International Chamber of Commerce (ICC) and several USCIB members participated in a strategic dialogue at the Concordia Summit in New York City on September 20 titled “The Private Sector’s Role in Achieving the SDGs.” USCIB President and CEO Peter Robinson, ICC Secretary General John Danilovich and USCIB Vice President Ariel Meyerstein participated in a wide-ranging dialogue about how business can engage with the UN sustainable development agenda. USCIB members who participated in the dialogue include Bechtel, Citi, Coca-Cola, MasterCard, Novozymes, Pfizer and others.

The 2030 Sustainable Development Agenda provides a terrific opportunity for the private sector to demonstrate the central role it plays in society. While government has been successful in outlining a visionary mission for global development, businesses have the unique ability to bridge the capacity gap to reach the impact and scale necessary to meed the SDGs. Partnership between the public and private sectors, at both the global and at national levels, is vital in creating an effective strategy and successfully implementing it to achieve these goals.

Full_RoomThis strategic dialogue brought together leaders from across sectors and industries in a  high-level working group to examine businesses’ role in providing technical know-how and fostering the spirit of innovation to fulfill the goals outlined by the United Nations. USCIB has been at the forefront of this initiative. Last year USCIB launched Business for 2030, an online platform showcasing business engagement with the SDGs. To date, Business for 2030 gathered 167 initiatives from 45 companies that cover 81 of the 169 SDG targets.

“We have been often struck at how misunderstood is business’s role in achieving sustainable development and particularly by the knowledge gap of what business was actively doing to help achieve sustainable development all over the world,” Robinson said. “Our hope is that Business for 2030 can make a small contribution to closing these information gaps, aggregating more information about business-led activities and perspectives on achieving the SDGs and hopefully stimulate more businesses to get involved as well as enhance the level and quality of cooperation between business and the UN community.”

During the dialogue, Danilovich explained the the successful implementation of the SDGs will depend upon three priorities: ending the “plague of protectionism” with regard to trade and investment, ensuring that enough trade finance is available to all businesses and finalizing the implementation of the World Trade Organization Trade Facilitation Agreement, along with other reforms in the multilateral trade agenda.

Since the launch of the SDGs, USCIB has advocated for a focus on good governance and the rule of law, inclusive economic growth, investment in infrastructure, policies to foster innovation, strong public-private partnerships and, above all, an open channel for business input into policy negotiations and implementation at the international and national levels.

“The truth of the matter is business needs the UN, and the UN needs business,” Robinson concluded. “Our challenge here today is to find new and creative ways to leverage each other’s experience and expertise, and make common cause in support of the SDGs.”

UN Report on Generic Drugs Disappoints Business Community

Published on September 22, 2016

health_care_globe_lo-resA recent report published by the United Nations argues that low-income countries should be allowed to override pharmaceuticals patents so they can access a cheaper supply of generic drugs.

The U.S. Department of State issued a press release expressing disappointment with the report and arguing that intellectual property rights in the pharmaceutical industry are essential to medical innovation, which is fundamental to promoting global health.

“We believe that we can both increase access to medicines and support innovation for the development of new and improved drugs for the world’s most critical health challenges,” the statement said. “Indeed, there can be no access to drugs that have not been developed: support for innovation is essential.”

USCIB echoes these remarks and believes that increasing access to life-saving medicines is a complex matter, and countries have a wide array of policies and actions that may be appropriate in promoting the progressive realization of the right to the enjoyment of the highest attainable standard of physical health.

“Robust intellectual property rights support the development of innovative new treatments and drugs,” said Peter Robinson, USCIB president and CEO. “We’re disappointed that this new report fails to recognize the role intellectual property rights plays, and we remain committed to advancing access to new medicines while also fostering innovation and investment.”

 

APEC Looks at Advertising Standards, Self-Regulation

Published on September 21, 2016

Lima_PeruMembers of the Asia-Pacific Economic Cooperation (APEC) forum held a third workshop on advertising standards in Lima, Peru August 22-23. The workshop brought together important government and advertising industry participants from APEC economies to advance the APEC Action Agenda on Advertising Standards and Practice Development, and to share views on good practices and experiences in advertising self-regulation.

Drawing attention to the 2017 APEC host’s views on the importance of the issue, the two-day event was opened by Peruvian Vice President Mercedes Araoz, who emphasized the need for a self-regulatory space to reflect responsibility in society, mutual respect and the creation of values. On this note, the stage was set for the seminar which focused on sharing good practices and experiences on advertising self-regulation among APEC economies, followed by fruitful discussions between APEC regulatory authorities, SROs and the industry.

Several USCIB members took part in the workshop, as did representatives of the International Chamber of Commerce (ICC), part of USCIB’s global network. ICC maintains the oldest and most influential international code on marketing and advertising standards, and has been a force for robust self-regulation of the industry since the 1930s.

“Advertising is an important driver of economic growth within APEC,” said Raelene Martin, policy manager for ICC’s Commission on Marketing and Advertising. “Aligning advertising standards across the Asia-Pacific region will easier facilitate the delivery of advertising services, and enable business growth, greater regional trade and investment, non-tariff barrier reduction and drive economic growth among APEC economies.”

Martin elaborated on the Consolidated ICC Code of Advertising and Marketing Communications Practice, noting its flexibility to adapt to different legal backstops and local needs. The code has been classified by the APEC Policy Support Unit study as the global reference for international best practice/advertising self-regulation.

APEC is developing a set of guiding principles which call on government and industry to develop robust self-regulatory systems, and provide a regulatory checklist on self-regulatory best practice for developing general systems and specific industries. A mentoring network will also be established, hosted by the Australian Advertising Standards Authority, to help reinforce and develop self-regulatory organizations, particularly in key markets where they do not yet exist.

At the APEC senior officials meeting taking place that same week in Lima, members of the APEC Committee on Trade and Investment recognized the continued importance of the APEC Action Agenda, with strong support for the work and follow-through on the key outcomes from the workshop, including a proposal for the next conference to be organized in Ho Chi Minh city in 2017, during Vietnam’s term as APEC chair, to review progress and develop a five-year implementation plan.

The ICC Commission on Marketing and Advertising has renewed its commitment to work with industry and other key stakeholders to help advocate the benefits of advertising self-regulation and ensure local input is given into the global commission that writes and revises the ICC Code.

2016 USCIB-NYU Stern Fellowship in Business and Human Rights

Published on September 16, 2016

For the second year in a row, the USCIB partnered with the Business and Human Rights Center at NYU Stern School of Business to offer first-year MBA students the opportunity to participate in the USCIB-NYU Stern Fellowship in Business and Human Rights. This is a paid opportunity for students to work at a multinational company on business and human rights issues during their first summer. In 2016, participating companies included New Balance, PepsiCo and PvH Corp, and the selected Fellows were Kimberly Rodriguez (PepsiCo), Meghna Saxena (PvH), Jeffrey Sybertz (New Balance) and Nancy Van Way (PvH).

In addition to the hands-on experience the Fellows gained at their respective companies, USCIB also provided a series of training webinars, which successfully concluded earlier this month. During these training webinars, the Fellows were introduced to a variety of experts in the business and human rights field. Topics of discussion included the human rights due diligence pursuant to the UN Guiding Principles on Business and Human Rights, investor relations and human rights related shareholder resolutions, leading business and human rights resource tools, such as the Business and Human Rights Resource Center and various reporting frameworks, such as the Global Reporting Initiative, as well as resources for company and supply chain research available on Bloomberg terminals. The training program was capped-off with a conversation about the career trajectories of leading practitioners in in the business and human rights field.

USCIB would like to recognize several of the organizations who participated in the training webinars and pro
vided their invaluable expertise, including the Shift Project, Business and Human Rights Resource Centre (BHRC), Interfaith Center on Corporate Responsibility (ICCR) and Governance & Accountability Institute (G&A Institute).

Details for the 2017 USCIB-NYU Stern Fellowship in Business and Human Rights will be announced this fall. If you have any questions, or would like to learn more about the fellowship, please contact Ariel Meyerstein (ameyerstein@uscib.org) or Elizabeth Kim (ekim@uscib.org).

Insights from the 2016 Fellows in Business and Human Rights:

Nancy Van Way“As a fellow in the USCIB and CBHR program I received a full array of practical training on the many instances where business and human rights intersect.  In today’s business world, leaders at the most successful companies are discovering that human rights issues impact multiple facets of their business model.  Our fellowship trainings prepared me well to understand and address these issues in a way that can create value for the company as well as society.”  – Nancy

Jeffrey Sybertz“The Fellowship was a great opportunity to see firsthand how the operations of a multinational corporation can impact the human rights of people around the world. Like many apparel and footwear brands, New Balance is beginning to devote more resources to addressing this impact. As a Fellow, I was able to work on embedding human rights thinking into New Balance’s business practices and develop processes to better identify and mitigate existing human rights issues. The field of business and human rights is rapidly growing, and this Fellowship gave me the opportunity to get in on the ground floor and gain valuable experience.” – Jeff

Kimberly Rodriguez“Through the USCIB-Stern Fellowship at PepsiCo, I was able to put theory into practice. Although I was very interested in issues concerning business and human rights prior to this summer, my experience in tackling such issues were primarily academic. At PepsiCo, I was able to see first-hand how human rights considerations are taken in tandem with critical business decisions. The fellows’ training that supplemented my day to day projects further exposed me to the cross-industry work being done on business and human rights issues. Over the last 12 weeks, I have had the privilege of working with passionate individuals who have inspired me to continue working in social impact and responsibility within corporations.” – Kimi

Business Highlights Opportunities to Strengthen Paris Agreement

Published on September 16, 2016

ParisWorkshopLast week, business, government, OECD and UNFCCC representatives attended a first of its kind workshop at the OECD to share experiences and explore next steps to enhance the role of business in the preparation, review and improvement of national pledges for the Paris Agreement.  Organized by BIAC and the Major Economies Business Forum (BizMEF),  the workshop included presentations of pro-active business dialogue and cooperation with national and regional governments from representatives of BusinessEurope, CNI, Keidanren, and MEDEF.

Opening the meeting, Russel Mills, Dow Chemical, Chairman of BIAC’s Environment and Energy Committee, stated that “in today’s increasingly inter-linked economies more in-depth cooperation between governments and business is essential to build the best models to most effectively tackle our major climate change challenges.” Over the course of the workshop, representatives of the UNFCCC and its Paris Agreement and implementation bodies presented their perspectives on where business could support action and inform technical discussions leading up to entry into force of the Paris Agreement and the development of rules for tracking progress of national actions.

Norine Kennedy, USCIB, presented a discussion paper, Business Engagement in Domestic and International Implementation of the Paris Agreement: Institutional Infrastructure for Nationally Determined Contributions (NDCs) and the UN FrameworkConvention on Climate Change (UNFCCC) , prepared by USCIB for BizMEF.  The discussion paper offers case studies drawn from a BizMEF survey of its partner organizations and recommends a recognized business interface to be developed as part of the Paris Agreement institutional infrastructure.  This unique report offered to UNFCCC by leading national and regional representative business groups will be further elaborated and presented in final form at a BizMEF side event during the next climate meetings in Marrakesh in November.

BIAC representatives also attended the OECD Global Forum on Climate Change this week.  BIAC’s ongoing policy work to advise OECD member states highlights the necessity of innovative technologies and investments that will support and scale up mitigation, adaptation and resilience.  In his closing comments, Mills reminded the Workshop that when “business identifies the most cost effective options for climate policy, this helps governments and society tackle climate challenges faster and cheaper.”

To read the current discussion draft, click here. We will keep you informed of further developments.

African Employers to Launch Jobs for Africa Foundation

Published on September 16, 2016

AfricaJobsThe African Employers’ Task Force on Employment and Employability has drawn up a Blueprint for Jobs in Africa. The Blueprint sets out ten Recommendations that African governments, working closely with employers’ organisations and trade unions, should implement in order to sustain growth and accelerate the pace of job creation in the continent.

Job creation is an important priority of the African Union Commission in the Ouagadougou Declaration on Employment and Poverty Alleviation and the Africa 2063 Agenda. It is also an important objective of the UN Sustainable Development Goal number 8 which seeks to promote sustained, inclusive and sustainable economic growth and decent work for all. Job creation through sustainable enterprises is a core priority of the IOE.

In order to continue with this work, the International Organization of Employers (IOE), with the support of the International Labor Organization, the European Commission and other partners, will launch the Jobs for Africa foundation. The main objective is to advance the work of the Taskforce by supporting governments, African employers’ organisations and trade unions to implement the 10 Recommendations of the Blueprint for Jobs in Africa.

Jamal Belahrach of CGEM Morocco will continue leading this work and will be supported by Frederick Muia and Anetha Awuku of the IOE.

The IOE announced that the European Commission has agreed to fund the next social partners’ forum on Jobs for Africa, which will be hosted by the Tunisian Employers’ Federation (UTICA) in Tunis on December 15-16, 2016. A formal invitation will be forwarded to our members and partners in Africa in due course.

Business Urges Congress to Approve Ex-Im Bank Quorum Requirement

Published on September 15, 2016

Money_globeUSCIB joined 14 other business associations urging Congress to approve the Export-Import (Ex-Im) Bank’s quorum requirement so that it may again review transactions over $10 million.

“While the Ex-Im Bank is back in operation and accepting new applications, it is prohibited from approving significant transactions because of the lack of a quorum on the Bank’s Board of Directors,” the business group wrote in a letter sent to Congressional leaders on September 12. “As a result, manufacturers and other exporters throughout the United States are at a significant disadvantage to global competitors who are aggressively supported by their own governments’ export credit agencies.”

The business associations argued that a fully operational bank would support millions of U.S. jobs by enabling companies to compete more successfully in the global economy. USCIB and others noted that the Bank is a vital tool in leveling the global playing field, helping American businesses secure new customers, particularly in emerging markets.

“With every passing day, businesses from the United States are missing out on new business opportunities overseas, to the detriment of local economies and American jobs. Congress can and must act swiftly,” USCIB and others wrote. “As associations representing millions of businesses throughout the United States, we urge you to move forward legislation as part of the Continuing Resolution that will enable Ex-Im to consider and act on all transactions immediately to boost America’s ability to compete globally.”

Read the full letter.