News Stories Archives

USCIB Talks Trade with European Journalists

Published on July 21, 2016
Shaun Donnelly (third from left).
Shaun Donnelly (third from left).

If passed, the Transatlantic Trade and Investment Partnership (TTIP), a trade agreement between the United States and the European Union, would liberalize one third of global trade, stimulating economic growth and creating jobs on both sides of the Atlantic.

On July 18, USCIB Vice President Shaun Donnelly and Eva Hampl, director of investment, trade and financial services, hosted a dozen visiting journalists from European Union nations to discuss the on-going TTIP negotiations.

The group of European journalists, visiting Washington and Boston on a week-long program sponsored by the U.S. State Department to familiarize European media leaders with American perspectives on T-TIP, met with representatives from government, academia, business and other experts.

Donnelly and Hampl had a lively, hour-long on-the-record session which focused on investment chapter issues, including Investor-State Dispute Settlement (ISDS), regulatory issues and the political backdrop to the negotiations on both sides of the Atlantic. The meeting provided a good opportunity for USCIB to articulate U.S. business positions, priorities and concerns on the important TTIP negotiations.

Please contact Donnelly (sdonnelly@uscib.org) or Hampl (ehampl@uscib.org) for additional details on the interview session for interested members.

IOE at Labor Ministerial: Implement G20 Commitments

Published on July 18, 2016
L-R: U.S. Labor Secretary Thomas Perez and Ronnie Goldberg (USCIB) in Beijing
L-R: U.S. Labor Secretary Thomas Perez and Ronnie Goldberg (USCIB) in Beijing

IOE Vice President Mthunzi Mdwaba stressed the need for programs and reforms to encourage entrepreneurship and innovation at the G20 Labor Ministerial in Beijing. In He made several statements in support of implementation of G20 commitments.

“Promoting and enabling entrepreneurship and innovation will contribute to more dynamic labor markets, which concomitantly will lead to the generation of more jobs and which will of course enable people to reach their full potential by opening their own businesses, instead of just being employed,” he said. “We would like to urge for a special focus to be given to youth entrepreneurship. Young entrepreneurs not only bring vibrancy and innovation to world economies, they also typically hire other youth. This is particularly important in view of the youth unemployment challenge we all want to tackle.”

Ronnie Goldberg, USCIB senior counsel, attended the ministerial in her capacity as chair of the Business and Industry Advisory Committee (BIAC) to the OECD Employment Labor and Social Affairs Committee. At the ministerial Goldberg pressed for continued joint leadership by BIAC and the International Organization of Employers (IOE) in ongoing negotiations with the Labor-20.

Mdwaba applauded the G20 entrepreneurship initiative that has been adopted and emphasized the need for an enabling environment for business, to raise the status of apprenticeships and to reduce in non-wage labor costs as measures to ensure the G20 employment process is a success.

IOE Meets with G20 Labor Ministers

The International Organization of Employers (IOE) jointly with the Business and Industry Advisory Committee (BIAC) to the OECD, Deloitte, the International Trade Union Confederation (ITUC) and the Trade Union Advisory Committee (TUAC) to the OECD hosted an informal gathering with G20 governments, employers and trade unions in Beijing as part of the G20 process.

IOE-BIAC survey to monitor implementation of G20 commitments

The event provided the opportunity to highlight the outcomes of the IOE-BIAC’s efforts to monitor implementation of G20 commitments. The results are mixed, showing that on one hand most governments followed up on the Melbourne and Ankara G20 Labor Ministers’ Declarations and have developed initiatives to implement the commitments, but on the other hand, in areas such as reduction of non-wage labor costs, the situation has worsened in a number of countries.

The level of ownership of the national employment plans among employers’ organisations was also put into question. The majority of employers’ federations in G20 countries show little confidence in the impact of the G20 process on producing major policy changes at the national level. All in all, while follow-up at the national level to G20 commitments is seen to be taking place, it is perceived as being insufficient in addressing the main employment challenges at hand.

Joint IOE-BIAC/ITUC-TUAC statement on “innovation, growth, jobs and decent work”

The informal gathering also served as a platform to launch the IOE-BIAC/ITUC-TUAC joint statement to the G20 Labor Ministerial. The statement refers to the joint B20-L20 messages of 2015 because of the “failure of many G20 economies to recover from recession and the elusive nature of global growth”.

The joint statement provides recommendations in six main areas:

  1. develop a policy framework for better technology diffusion
  2. determinedly tackle youth unemployment
  3. pursue macro-economic policies that promote employment
  4. make a reality of the 2014 Brisbane target of reducing by 25 percent the gender gap in employment by 2025
  5. promote formality and implement the recommendation on informality adopted by the 2015 International Labor Conference
  6. business and labor play a key role in the shaping of economic and social policy

USCIB Helps State Department Launch 2016 Investment Climate Statements

Published on July 8, 2016

Donnelly_CSISAn important component of the U.S. State Department’s economic mission, the Investment Climate Statements contain country-level information on a variety of issues important for U.S. businesses, such as market barriers, business risk and intellectual property rights. On July 5, the Center for Strategic and International Studies (CSIS) hosted the State Department’s presentation of the statements’ key findings. USCIB Vice President for Investment and Financial Services Shaun Donnelly joined leaders from the State Department’s Economic and Business (EB) Bureau, and other investment experts for the launch event.

Scott Miller, Scholl Chair holder in International Business at CSIS and a former Chair of USCIB’s Trade and Investment Committee, emceed the roll-out event. Kurt Tong, Acting Assistant Secretary in the EB Bureau, highlighted the improvements made in this 2016 version of the 170 country-by-country Investment Climate Statement reports, each laying out the legal and policy environment, opportunities and challenges U.S. investors encounter, whether in an established European market, a key emerging market like China or India, or in a smaller developing nation. Donnelly and other panelists then offered observations on the value of the reports for USCIB members and American business.

“Anyone considering investments in a new market overseas should definitely consult the relevant Investment Climate Statements and may want to follow up in more detail with the key staff in State’s Investment Office or in the particular US embassy which prepared the relevant country report,” Donnelly said.

Successful Policies to Fight Obesity

Published on July 5, 2016

Healthy food in heart and cholesterol diet conceptAre there any successful policies and programs to fight overweight and obesity? USCIB responded to the UN Food and Agriculture Organization (FAO) Global Forum request for answers to this important question.

“All facets of society, including the private sector, have an important role to play in helping to reduce the incidence and burden of non-communicable diseases (NCDs),” USCIB said in comments submitted to the FAO on June 30. “This view is supported by World Health Organization (WHO) and OECD strategies recognizing that NCD solutions require a whole-of-society approach, multi-sectoral actions, and collaboration among governments, civil society and the private sector. Given the complex and multi-factorial nature of NCDs, it is essential that all stakeholders work together to develop holistic, sustainable solutions.”

The comments note that the food and beverage industry’s efforts to prevent NCDs are guided by sound, science-based polices that include:

  • Providing a range of nutritious product choices and marketing them in ways that promote healthy lifestyles
  • Improving awareness and understanding of nutrition and energy balance
  • Communicating clearly through labeling, packaging, websites, brochures, and in-store communications to enable consumers to make informed choices
  • Undertaking responsible advertising practices, taking into account the special needs of children
  • Emphasizing the importance of achieving a balance throughout life of physical activity and nutrition
  • Partnering with other stakeholders in these endeavors.

The comments also list several examples of voluntary industry efforts that have contributed to the fight against obesity and other NCDs.

Read USCIB’s comments.

Roundtable on Business Engagement in the Paris Climate Agreement and INDCs

Published on July 1, 2016

forest_greenThe Business and Industry Advisory Committee (BIAC) to the OECD welcomed the successful conclusion of COP 21 in Paris last December and underlined the importance of active business involvement in the implementation of the agreement. On September 12, the Major Economies Business Forum (BizMEF) in cooperation with BIAC will organize a roundtable on Business Engagement in Intended Nationally Determined Contributions (INDCs), or country pledges, and the Paris Agreement, back-to-back with the bi-annual OECD/IEA Climate Change Expert Group Meeting in Paris.

Over the past year, major business organizations have shared their experiences consulting with national governments in the preparation of initial INDCs and contributed to a survey prepared by USCIB. Participants from business, governments, academia and international institutions will discuss results and lessons learned as well as ways that business can contribute to the new five-year cycles of domestic and international processes to take stock of global implications and to renew and review INDCs. Discussions will benefit from the unique insights business has into the implications of the portfolio of INDCs for their operations, and investments, and for supply and value chains in the globalized economy.

Business Calls on Governments to Ratify the Paris Agreement

Published on July 1, 2016

Business&Climate_DanilovichThe second Business & Climate Summit – convened by a network of partners that represent over 6 million businesses worldwide – called for swifter government action on climate and the ratification of the Paris Agreement without further delay.

UK Secretary of State for Energy & Climate Change Amber Rudd MP addressed the Summit  reaffirming UK leadership on action against climate change despite the vote to leave the European Union.

“Climate change has not been downgraded as a threat,” she said. “It remains one of the most serious long term risks to our economic and national security […] as investors and businesses, you can be confident we remain committed to building a secure, affordable low carbon infrastructure fit for the 21st Century.”

The Business & Climate Summit – the annual gathering of leading global businesses and political leaders dedicated to climate action – met over two days (28-29 June) at London’s Guildhall, in the heart of the world’s leading international financial center, to address how business can, and should, continue to play a proactive role in reducing emissions and building a climate-resilient economy. Those already leading the way are putting climate action at the heart of their business strategy and reaping the economic benefits of doing so.

Achieving the goals of the Paris Agreement will require a major shift in investment away from traditional fossil fuel based energy intensive goods and services towards smarter, cleaner low carbon business models. To ensure that the objective of keeping global temperature increases well below 2°C remains possible and can be done in a way that minimizes economic disruption, this shift will have to happen immediately.

Following his role as Coordinator of the COP21 Business Dialogue, Gerard Mestrallet, Chairman, Paris EUROPLACE, Chairman, ENGIE, returned to this year’s Summit and said: “The first priority, I think, is setting carbon price signals everywhere, at levels that reflect the objectives Parties seek to achieve according to their National policies, or Regional policies, as for example for the EU ETS in Europe.”

The final day of the Summit, under the theme Finance, Innovation and Policy for The Low Carbon Transition, looked at the scale of action needed. It is estimated that $90 trillion needs to be invested globally in cities, land use and energy infrastructure – doubling current global annual infrastructure investment – between now and 2030 to help secure a low carbon, climate resilient economy.

Governments were urged to translate their ‘Nationally Determined Contributions’ into investment grade policy frameworks as soon as possible and to use carbon pricing as the most efficient way of achieving emission reduction targets.

Discussing low carbon finance and investment, Stuart Gulliver, Group Chief Executive Officer of HSBC, said: “Six months on from Paris we are much closer to being able to implement the terms of COP21 than we were at the start. The barriers to investment are lower, the call to action is louder and there is a clear willingness on the part of business and investors to change their ways and adapt their business models. Investors want to invest in sustainable projects and reduce the carbon footprint of their portfolios. With better standardisation, enhanced disclosure rules and better incentives for issuing green bonds, the COP21 goals can be met, but we must continue to work in unison and at pace with the public sector.”

Business recognizes that, with other non-state actors, it played an important role in securing the Paris Agreement and can play an equally important role in contributing to creating the policy frameworks conducive to long-term climate-resilient low carbon investments. Over the two days, the Summit heard from businesses all over the world, calling for swifter government action on climate and to work in partnership with business to achieve the necessary global policy framework.

During the final afternoon, the International Chamber of Commerce (ICC) led an International Trade Plenary. Trade and climate change have an inextricable and intimate relationship. The Summit heard from business leaders and policymakers regarding the trade policy priorities required from a climate and green growth perspective, addressing the necessary action needed at the multilateral level as well as the possible role of bilateral and regional agreements. ICC Secretary General John Danilovich said: “Open markets are the best tool we have to enhance global welfare and enable climate action.”

At the beginning of the Summit, the We Mean Business coalition and CDP (formerly the Carbon Disclosure Project) launched a report, ‘The Business End of Climate Change’ with research analysis from the New Climate Institute. It examined five global initiatives on climate action and found that under current plans, business actions will reduce emissions by 3.7 billion metric tons of CO2 equivalent a year, or 60 percent of total emissions cuts pledged in Paris by countries’ NDCs. However, business emissions cuts could reach around 10 billion metric tons of CO2 equivalent a year, well over halfway to a sub 2°C world, with the right policy environment for enhanced climate action.

Business Sets Priorities for Education Policy

Published on June 28, 2016

In response to the skills shortages many economies face, the Business and Industry Advisory Committee (BIAC) to the OECD released a “Business Priorities for Education” paper that calls for stronger cooperation among employers, policymakers, and education institutions.

“Our societies, and employers in particular, have a profound interest in ensuring that today’s and tomorrow’s job seekers are versatile, skilled, and employable,” commented Charles Fadel, Chair of the BIAC Education Committee. “They must be prepared to learn throughout their professional lives.”

Businesses therefore pay close attention to education policy. The competitiveness of companies, and the health of the societies in which they operate, hinge to a great extent on the talent and knowledge of employees.

The BIAC paper contributes chapters by thought leaders from national employer organizations and other education policy experts. Areas for action as identified in the paper include:

  • Curriculum and assessment reform
  • Entrepreneurial education
  • Teaching quality and school autonomy
  • Vocational education and training, and work-based learning
  • Innovation in education and higher education

Read Business Priorities for Education

USCIB Statement on Impact of Brexit Vote on ATA Carnet

Published on June 27, 2016

Last week’s UK vote to leave the European Union has spurred many questions regarding the country’s future trade and treaty commitments, including the ATA Carnet system for temporary imports. At this time, the UK remains a member of the EU, and the process for leaving the bloc has not yet begun. We have no indication of any changes affecting the use of ATA Carnets in the UK, or in the EU as a whole, for the foreseeable future.

The earliest Brexit could take effect is two years after a treaty mechanism has been triggered. The latter part of 2018 is considered the most likely date at the moment.

“In the meantime members of the chain can continue to issue ATA Carnets for the UK as part of the EU in exactly the same way as they do now.  The UK will continue issuing exactly as present as well.” said Peter Bishop, deputy chief executive of the London Chamber of Commerce and Industry.

As the U.S. National Guaranteeing Association for the global ATA Carnet system, USCIB is monitoring the situation closely, working with ICC and affected parties including our ATA Carnet Service Providers. We will provide updates as new information becomes available.

International Chamber of Commerce Statement on UK EU Referendum

Published on June 24, 2016

brexit_sourceFollowing the United Kingdom vote to leave the European Union, the International Chamber of Commerce has issued the following statement.

ICC Secretary General John Danilovich said:

“Business will need time to assess the implications of yesterday’s EU referendum vote in the UK. The urgent priority must be to calm the markets and we need strong political leadership in the coming days and weeks to achieve this.

“From a global business perspective international cooperation is more vital than ever. The UK must not turn its back on global economic integration and trade. Openness not protectionism must be a central part of the response to the Brexit vote.

“The anti-trade sentiment that we have seen in recent months must not dominate the post-Brexit debate. The UK may be headed out of the European Union, but it must move into the world. Openness not protectionism must be a central part of the response to the Brexit vote.”

Strong Business Engagement at OECD Internet Ministerial

Published on June 24, 2016
Hackathon2
L-R: Angel Gurría (OECD), Ildefonso Guajardo Villarreal (Mexican government) and Peter Robinson (USCIB)

Information flows across borders at an unprecedented pace. Few aspects of our lives remain untouched by the digital economy, and new challenges have arisen in this context. Meeting these challenges requires all stakeholders to develop new digital economy policies. From June 21 to 23, OECD ministers and stakeholders gathered in Cancún, Mexico, for an OECD Ministerial Meeting on the Digital Economy: Innovation, Growth and Social Prosperity to move the digital agenda forward in four key policy areas considered foundational to the growth of the digital economy — Internet openness; trust in the digital economy; building global connectivity; and the transformation of jobs and skills.

Toward this end, participants issued the Cancún Ministerial Declaration on the Digital Economy. Among other elements, the Declaration recognizes that the OECD’s Internet Policy Principles (IPPs), Consumer Protection in E-commerce, Digital Security Risk Management for Economic and Social Prosperity, Cryptography Policy and Protection of Privacy and Transborder Flows of Personal Data, serve as an invaluable suite of frameworks to further guide the development of coherent policies for an increasingly digitalized economy.

The Declaration then sets forth nine key commitments, which include, first and foremost, supporting the free flow of information. Other commitments emphasize the importance of stimulating digital innovation and creativity, increasing broadband connectivity, embracing the opportunities arising from emerging technologies such as the Internet of Things and cloud computing, and promoting digital security risk management and the protection of privacy at the highest level of leadership, among other priorities.

Although the Ministerial examined four key policy areas, the issue of restoring user trust in the online environment emerged as a recurring theme across all sessions. During the June 22 opening plenary, U.S. Secretary of Commerce Penny Pritzker acknowledged that while digital technologies have become a driving force of job creation, entrepreneurship, and innovation in the 21st century, they also bring new challenges related to cybersecurity and privacy. She urged that countries continue to rely upon the OECD’s IPPs for guidance and avoid “throwing up digital walls” through data localization and other policies and regulations that block legitimate cross-border data flows.

“We expect such policies from authoritarian regimes that want to isolate their people – not from nations that welcome the global exchange of ideas and commerce,” Pritzker said.

During the June 23 closing ceremony, OECD Secretary General Angel Gurria described the Ministerial Declaration as providing a forward-looking roadmap for how the digital economy can improve our lives. During the next two years, the OECD will examine in consultation with all stakeholders the “homework” that must be undertaken to prepare for the next phases of digitalization. This will include addressing the “deficit of data” needed to effectively measure the digital economy. Gurria underscored the importance of leadership from the top.

“We all leave Mexico with clear marching orders of policies to promote in our countries [which will mean] rethinking our policies from tax, to trade, to transportation through a digital lens,” Gurria said.

Business Stakeholder Day

During the Ministerial, the Business and Industry Advisory Committee (BIAC) to the OECD, together with the Mexican business federation COPARMEX, hosted a Business Stakeholder day dedicated to Unleashing the Benefits of Innovation in the Global Information Society. Close to 30 speakers and 300 business and government delegates were in attendance.

In his opening remarks, BIAC Secretary General Bernhard Welschke called for comprehensive measures to foster the growth potential of the digital economy. “Innovation is the key driver of growth for our economies and societies,” Welschke said. Ambassador Pérez-Jácome, the Mexican Ambassador from the permanent delegation of Mexico to the OECD, emphasized that “creating the conditions to foster innovation, investment and labor mobility is crucial to grasp the benefits of the digital economy.” BIAC’s Mexican Vice Chair José Ignacio Mariscal Torroella, also pointed to the importance of the digital economy for the growth potential and role of Mexico in the global economy.

Business participants from a variety of sectors and countries explored framework conditions that create the optimum enabling environment for success in the digital economy and information society: Infrastructure, Innovation, Information flows, Intellectual capital, Investment and Integration. They also drilled down into the innovation element, examining adequate policy conditions to ensure that the innovation capacity, creativity and fruitful ideas can be transformed into useful services and products.

Both USCIB President Peter Robinson and Senior Counsel Ronnie Goldberg moderated panels, on “Framework Conditions for Success in the Digital Economy” and “Workforce Development and Mobility,” respectively, as did USCIB members Peter Davidson, SVP of Verizon, on “Enabling the Benefits of Innovation” and Dorothy Attwood, SVP of Walt Disney, on “Promoting Trade, Inclusion, and Trust”.

“A clear takeaway was that a balanced policy framework that encourages creativity and innovation, and fosters trust, is necessary to realize the benefits of the digital economy,” Robinson said. “And OECD plays an important role in offering tools and policies to guide governments forward.”

In addition, business stakeholders offered their own views on fostering consumer trust in the online environment through policies aimed at optimizing the benefits of data flows while recognizing security and privacy concerns.  Mirroring the Ministerial’s focus on job transformation in the digital economy, speakers provided the business perspective on the challenges of developing and maintaining workforce skills in an ever-evolving global digital economy.

Hackathon Contest

In parallel to the stakeholder conference, the business community in partnership with the OECD and the Government of Mexico developed a 24-hour Hackathon – an app developer contest – that attracted nearly 200 participants between the ages of 18 to 29 from both OECD and non-OECD member countries, who competed in 37 teams of 3-6 people.

The Hackathon, working under the theme “Connected Communities, Connected Lives” provided an opportunity for Ministers and stakeholders to observe the creative process of youth as they cultivated their digital skills and developed apps to address a particular local or global challenge.

Developers competed to win over $20,000 in cash awards, mentorship opportunities and other prizes, for apps targeted towards the categories of Cultural Heritage; Smart Cities; Social Inclusion; and, Entrepreneurship.

This has been an exciting example of public-private collaboration here at the 2016 Digital Economy Ministerial,” said USCIB President and CEO Peter Robinson at a special awards presentation for the Hackathon winning teams on June 22. “This contest demonstrated that the potential for innovative talent knows no boundaries.

The grand prize went to the team Nisi Vitae, who created an application that enables a user to quickly and automatically provide all medical information to emergency response personnel when calling for an ambulance. Nisi Vitae also won the Smart City award.

Other category prize winners included Time Stamps in the Cultural Heritage category, who created an app designed to make studying history more immersive for teenagers; VR-ehab in the Social Inclusion category, who created an app that converts physical rehabilitation into a game using an Android Virtual Reality environment and a hand movement detection system; and Autonomi in the Entrepreneurship category, who created an app aimed at increasing security and independence for the visually impaired.

The Hackathon was made possible by the generous support of the following sponsors: AT&T, Cisco, Disney, Google, Intel, Microsoft, Oracle, Verisign, and the Internet Technical Advisory Committee to the OECD (ITAC).

10 Business Recommendations for Productivity, Prosperity, and Inclusive Growth

“A balanced and comprehensive policy approach is necessary to reap the benefits of the digital economy”, said Welschke at the opening of OECD Ministerial meeting on the Digital Economy in Cancun on June 22. “It is crucial to set the right policy context if we want to leverage the full potential of innovation in globalized and increasingly information-oriented economies, to promote trade, inclusion and trust.”

BIAC participants from a variety of sectors pointed to innovative business models and applications, emerging technologies on cloud computing, Big Data, and the Internet of Things as areas with significant potential for economic growth and social benefit.

BIAC’s business messages and recommendations to the minsters call for policies that are grounded in the OECD’s Internet Policy Principles. Specifically, business advocates policies that: serve to foster business innovation; provide for open, fair and competitive markets; respect intellectual property rights, and effective systems to enforce those rights; encourage the adoption of emerging ICTs; raise awareness of digital privacy and digital security risk and develop tools and practices to manage those risks; and avoid unduly restricting the movement of data between companies on the domestic level and across borders. Skills development also is key for the mobility of workers, their competence and their resilience to labor market change.