Only Three More to Go for WTO’s TFA Entry Into Force

The World Trade Organization’s Trade Facilitation Agreement (TFA) is likely to enter into force within the next week. Only three more ratifications are now required to reach the 110-country threshold for the agreement to take effect.

The TFA is critical to business, creating more jobs, transparency and predictability while reducing costs and cutting red tape at borders.

Research has shown that implementation of the WTO TFA could reduce global trading costs, on average, by nearly 14.5 percent and cut trading costs for low income countries by at least an estimated 13 percent; nearly 14 percent for lower – middle income countries and nearly 13 percent for upper -middle income countries. Implementation of the TFA can also create up to 20 million jobs and add over $1 trillion to global trade flows.

On January 20, Nigeria became the 106th country to ratify the WTO TFA. Prior to Nigeria, Mozambique deposited its instrument of ratification at the WTO. Mozambique, was joined by St. Vincent and the Grenadines, which deposited its instrument of ratification at the WTO on January 9, 2017.

USCIB Senior Director for Customs Megan Giblin who has been working on the TFA since 2015 noted that “USCIB’s focus has been primarily on the ratification of U.S. FTA partners as well as APEC economies. Outreach efforts and advocacy will continue.”

Countries who have accepted the Agreement:

Hong Kong China, Singapore, the United States, Mauritius, Malaysia, Japan, Australia, Botswana, Trinidad and Tobago, the Republic of Korea, Nicaragua, Niger, Belize, Switzerland, Chinese Taipei, China, Liechtenstein, Lao PDR, New Zealand, Togo, Thailand, the European Union (on behalf of its 28 member states), the former Yugoslav Republic of Macedonia, Pakistan, Panama, Guyana, Côte d’Ivoire, Grenada, Saint Lucia, Kenya, Myanmar, Norway, Viet Nam, Brunei, Ukraine, Zambia, Lesotho, Georgia, Seychelles, Jamaica, Mali, Cambodia, Paraguay, Turkey, Brazil, Macao China, the United Arab Emirates, Samoa, India, the Russian Federation, Montenegro, Albania, Kazakhstan, Sri Lanka, St. Kitts and Nevis, Madagascar, the Republic of Moldova, El Salvador, Honduras, Mexico, Peru, Saudi Arabia, Bahrain, Bangladesh, the Philippines, Iceland, Chile, Swaziland, Dominica, Mongolia, Gabon, the Kyrgyz Republic, Canada, Ghana, Mozambique, and St. Vincent and the Grenadines.

 

USCIB in the News: Op-ed in The Hill on UN Funding

un_headquarters_lo-resUSCIB President and CEO Peter M. Robinson published a timely op-ed in The Hill addressing recent calls in Congress to withhold or withdraw U.S. funding for the United Nations. The op-ed, reprinted below, is also available on The Hill’s website.

This op-ed comes as President-elect Trump’s top appointees, including his proposed foreign policy team, are on Capitol Hill for Senate confirmation hearings. We encourage you to share the op-ed with your colleagues and others who may be interested.


The Hill

January 11, 2017

Walking away from the UN would harm US economic interests

By Peter M. Robinson, opinion contributor

With President-elect Trump’s key foreign policy nominees facing Senate confirmation hearings this week and next, some lawmakers on Capitol Hill are threatening to withhold or slash U.S. funding for the United Nations.

This would be a bad idea, both for American power and influence, and for our economic interests. It would be especially risky for U.S. companies and workers.

My organization — The United States Council for International Business — has represented American business views to the U.N. and other international organizations for decades.

We know the U.N. sometimes fails to measure up to our expectations, particularly when it and its specialized agencies have provided a platform for anti-business views. Why do we put up with this? Why shouldn’t we just take our chips and go home?

Quite simply, because we know that no country, including the United States, can go it alone. A strong U.S. presence in the U.N. enhances our influence and our overall security.

More than ever, at a time when terrorism, cybersecurity threats, disease pandemics and refugee crises can disrupt our lives, we need the kind of platform for close international cooperation and collective action that the U.N. can provide.

This is especially true for American companies with customers, employees and operations around the world. While we may not agree with everything the U.N. does, it is simply not in our interest to withdraw support.

We in the private sector see an urgent need for the United States to stick up for its economic interests in the U.N.

For instance, in the negotiations that culminated in the 2015 Paris Climate Agreement, the U.S. had to push back hard against proposals to undermine protection for innovation and intellectual property rights, to assign historical liability for loss and damage from natural disasters, and to ban certain technologies or energy options important to U.S. energy security and climate risk reduction.

Without strong U.S. leadership, these initiatives would have carried the day, hampering American jobs and competitiveness.

At their best, the U.N. and similar bodies set global standards and develop rules that allow U.S. businesses to plan and invest.

Recent U.N. initiatives that have helped American business and our economy include agreements that support a fundamentally “hands-off” approach to the global Internet and guidelines laying out the roles and responsibilities of the private sector and governments in upholding human rights.

Moreover, the U.N. has recently developed the 2030 Sustainable Development Goals (SDGs), addressing an array of challenges, from ending global poverty and hunger to ensuring access to energy, for the next decade and beyond.

The SDGs were developed in close partnership with the private sector, which will be responsible for “delivering the goods” in many, if not most, measures of success.

So, is the U.N. perfect? Far from it, but withholding funding or walking away from the U.N. won’t change that.

Like it or not, it is part of the fundamental infrastructure for global economic activity. Like other infrastructure, the U.N. is desperately in need of repair to meet the needs of the 21st century.

If we play our cards right, this can be a century of American-led innovation and entrepreneurship. President-elect Trump’s administration should insist that the U.N. live up to its potential, defending and advancing U.S. interests in the influential world body.

Business will be there to help. Just last month, the U.N. afforded highly-selective Observer Status in the U.N. General Assembly to the International Chamber of Commerce (ICC), the business organization that represents enterprises across the globe in numerous U.N. deliberations.

This is an important sign of progress, indicating that the U.N. recognizes the need to work more effectively with business.

(Full disclosure: My organization serves as ICC’s American chapter and we pushed hard in support of ICC’s application.)

Congress should meet U.S. funding obligations and work with the Trump administration to hold the U.N. accountable to the U.S. and other member governments, as well as to economic stakeholders in the business community.

Strong engagement and leadership in the global body by the United States is an opportunity too important to lose. American security, jobs and economic opportunities are at stake if the U.S. were to indeed walk away.

Peter M. Robinson is president and CEO of the United States Council for International Business. He is an appointee to the President’s Committee on the International Labor Organization and the Secretary of State’s Advisory Committee on Public-Private Partnerships. Robinson holds a master’s degree in international affairs from Columbia University.

The views expressed by contributors are their own and not the views of The Hill.

More Than 20,000 ATA Carnets for Temporary Exports Issued in United States in 2016

ATA-Carnet-LogoNew York, N.Y., January 10, 2017 – To date, the Dow Jones Industrial Average has only flirted with the elusive 20,000-point milestone. But another economic indicator – one that tends to forecast trends in U.S. exports – recently blew past the 20K mark and shows signs of continued growth. American companies and business executives used more than 20,000 ATA Carnets for the temporary export of various types of goods in 2016, according to the United States Council for International Business (USCIB), which administers and guarantees ATA Carnets in the United States.

The ATA Carnet, also known as the “merchandise passport,” is an international customs document honored by customs authorities in some 75 countries, which helps companies expedite temporary duty-free and tax-free import of goods for professional equipment, commercial samples and items for display at exhibitions and fairs. The worldwide ATA Carnet system is overseen by the World Customs Organization and the International Chamber of Commerce (ICC), for which USCIB serves as the American national committee.

“The 20,000 mark has been a longstanding goal for the ATA Carnet service,” said USCIB President and CEO Peter M. Robinson. “It was achieved following two very impressive growth years spearheaded by our Service Providers, Roanoke Trade and Boomerang Carnets. We believe that this milestone is a positive sign for continued growth in U.S. exports, since ATA Carnet usage by American firms often presages increased sales overseas.”

The ATA Carnet system has expanded in recent years, with Brazil joining last June as the country got set to host the Summer Olympics. Robinson said there are hopes that additional countries in Latin America will soon participate. Mexico and Chile have honored ATA Carnets for several years. USCIB plays an active role in the worldwide administration of the global system by virtue of its role as the U.S. affiliate of ICC. The United States is the third-largest user of ATA Carnets, following Germany and Switzerland.

Find out more about the services offered by USCIB to facilitate cross-border trade and investment at www.uscib.org.

Contact:
Jonathan Huneke, VP communications, USCIB
Tel: +1 212.703.5043, click here to e-mail

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 leading international business organizations, including ICC, USCIB provides business views to policy makers and regulatory authorities worldwide, and works to facilitate international trade and investment.

Registration Open for USCIB’s Arbitration Committee Annual Session

uscib-icc-logoThe USCIB Arbitration Committee will hold its annual session on Wednesday, January 18th in NYC. The luncheon will feature updates from the ICC International Court of Arbitration as well as from the United States Council for International Business. Alexis Mourre and Andrea Carlevaris, president and secretary general of the International Court of Arbitration, respectively, and USCIB President & CEO Peter Robinson will give presentations on recent developments at each institution.

Additional topics to include updates on ICC Court matters and discussion on the launch of the ICC revised Rules of Arbitration.  Amendments to the ICC Rules of Arbitration have been made with the aim of further increasing the efficiency and transparency of ICC arbitrations. The revised rules will apply beginning March 1, 2017. They provide for expedited procedure rules for cases of lower value. The main changes will be discussed, with a strong focus on features of the expedited procedure including substantive and procedural aspects. A PDF copy of the updated rules can be downloaded here .

The ICC Commission on Arbitration & ADR’s will also launch of its new Report: Financial Institutions and International Arbitration.

ICC Commission’s latest Report on Financial Institutions and International Arbitration reflects financial institutions’ perceptions and experience of international arbitration. Arbitration, with its flexibility and worldwide enforcement, has the potential to become the preferred dispute resolution method for the world’s corporate and investment banks. This one-of-a-kind interdisciplinary Report addresses the potential benefits of international commercial arbitration in banking and financial matters and some common misperceptions about the process. It concludes with a series of detailed recommendations for tailoring the arbitration procedure to suit the needs of the banking and finance sectors.

The report offers an analytical survey of arbitration in twelve banking and financial sectors and products spanning all CIB financing, capital markets, asset management and advisory mandate fields. It is the

linchpin of a new approach to dispute risk management in international banking and finance. The Report does not seek to establish rules or guidelines, but provides practical information which will be of assistance to arbitrators, counsel and parties. The program for the launch event will feature presentations given by members of the ICC Commission, Secretariat and the Task Force that produced the report.

 To register, please contact Jessica Berti at jberti@uscib.org 

General Electric and McDonald’s Honored With ACE Awards for 2016

McDonald’s Director of Global Government & Public Affairs Sam Tatevosyan and State Department Special Representative for Commercial and Business Affairs Ziad Haidar
McDonald’s Director for Global Government & Public Affairs Sam Tatevosyan alongside Ziad Haidar, State Department special representative for commercial and business affairs

The U.S. Department of State recently held its 18th annual Awards for Corporate Excellence (ACE).  Two leading USCIB member companies, General Electric and McDonald’s, headed the list of six recipients honored for exceptional proactive corporate responsibility programs in specific foreign countries.  Deputy Secretary of State Tony Blinken handed out the awards in an impressive ceremony in the Benjamin Franklin State Dining Room.  Under Secretary for Economic Growth Cathy Novelli and Special Representative for Commercial and Business Affairs Ziad Haidar also participated in the ceremonies.  USCIB Vice President Shaun Donnelly, a former U.S ambassador and State Department official, represented USCIB at the event.

General Electric and McDonald’s were the two winners in the “Inclusive Hiring Practices” category.  GE was honored for co-founding the country’s first all-women business services center, which now employs over 1,000 Saudi and non-Saudi women, servicing a fifth of the company’s worldwide service needs. Mazen Dalati, chief operating officer of GE Saudi Arabia and Bahrain, accepted the award.  GE Chairman and CEO Jeff Immelt also spoke via a video message.

McDonald’s Deutschland was also honored in the “Inclusive Hiring Practices” category.  McDonald’s Deutschland has led by example to support refugees’ integration into Germany’s society and workforce. Since 2015, McDonald’s Deutschland has employed over 900 refugees across the country. The company also provided over 20,000 online German Language learning course licenses to help refugees prepare for the workforce in Germany. Sam Tatevosyan, McDonald’s director of global government and public affairs, accepted the award on behalf of McDonald’s Deutschland and the entire company.

Other winners included Andela (Nigeria) in the “Small and Medium Enterprise” category, Bureo (Chile) and Interface (Philippines) in the “Sustainable Oceans Management “ category, and Freeport McMoran for “Transparent Operations” category for its Cerro Verde copper mine in Peru. U.S.-based companies operating overseas are nominated for these annual awards by the local U.S. ambassadors.  Competition is intense with many deserving nominees ever year.  GE is repeat winner, having been recognized in 2007 for its work in Indonesia.  Previous winners over the past 18 years included USCIB companies such as Coca-Cola (Philippines and Egypt), Intel (Vietnam), Proctor and Gamble (Nigeria and Pakistan), Cisco Systems (Israel and Jordan), Goldman Sachs (Chile), and Chevron (Nigeria).

The audience at last week’s ceremony included U.S. government officials, foreign ambassadors, the business community and the media.  The ceremony was webcast around the world by the Department of State. More details on the Department of State’s ACE awards program, the ceremony, and this year’s winners can be found here.

TTIP: Now More Than Ever, We Need a Common Vision for the Future

USCIB President and CEO Peter M. Robinson
USCIB President and CEO Peter M. Robinson

By Peter M. Robinson, President and CEO, United States Council for International Business (USCIB)

This column was originally published in Echanges Internationaux, the magazine of ICC France, the French national committee of the International Chamber of Commerce.

The past year has been a disappointing one for transatlantic trade policy. More than ever, we must stand up for trade and investment, two keys for economic growth and job creation. Peter M. Robinson, President and CEO of the United States Council for International Business (ICC USA), puts forward some ideas for a common transatlantic business agenda.

Efforts by the United States and the European Union to negotiate a comprehensive, high-standard Transatlantic Trade and Investment Partnership have progressed at a disappointingly slow pace. As we near the end of the Obama administration (and look ahead to a Trump administration that promises a decidedly different approach to trade policy), TTIP has gotten mired in squabbling over a range of challenging issues and is now effectively sidelined.

These are challenging times for global companies and for major business organizations, including the International Chamber of Commerce and its national committees – such as ICC France and USCIB.

Strong, credible voices from business are more important than ever. The U.S., France and Europe more broadly all need more economic growth, more prosperity, more and better jobs. And as we in the ICC family know, one of the best ways to drive that growth is through increased international trade and investment. With that said, I would put forward the following as a common transatlantic business agenda that we can all agree on.

Keep pushing on trade liberalization

The U.S. and EU must keep pressing ahead on the important and challenging issues in TTIP. We cannot let the change of administration in the U.S., internal divisions within the EU, or other distractions deter us or our political leaders from achieving a comprehensive, ambitious, and balanced Transatlantic economic framework. TTIP was, and remains, our preferred option but that pathway seems blocked at least for the time being. It won’t be easy, and it won’t get done as fast as we’d like. But whether TTIP or some other comparable U.S.-EU agreement, it is more important to get a great agreement than to get a quick or easy agreement.

At the same time as we work to cement transatlantic ties, the U.S. and EU also need to keep providing strong leadership for the multilateral trading system, principally through support for and leadership of the World Trade Organization, which desperately needs a strong shot in the arm. The U.S. and Europe must work together to push forward an ambitious multilateral trade agenda for as we approach the WTO ministerial in Argentina in late 2017.

Work together on development

One key element of any WTO agenda needs to be a strong development pillar, designing and implementing creative ways the WTO trade regime can more effectively promote economic growth in the least developed countries, especially in Africa.

Through our “Business for 2030” initiative, USCIB had spearheaded efforts within the ICC network to provide proactive, constructive business participation in the UN Sustainable Development Goals and the 2030 Agenda. We would love to work more closely with ICC France and other leading ICC national committees in Europe on this effort, as we did successfully on the Paris Agreement on Climate Change. Our website www.businessfor2030.org provides additional information on this important effort.

Join forces on global taxation

Business needs clear, predictable, and fair tax regimes in order to plan and execute its operations. Both European and American business need to be more active, and more closely coordinated, in our participation in the G-20 and OECD efforts to reform global taxation. ICC France and USCIB actively engaged in the OECD’s Base Erosion and Profit Shifting (BEPS). We cannot allow the BEPS effort to get hijacked by those with an anti-business agenda.

Keep global organizations “open for business”

Unfortunately, some international organizations in the UN family are becoming hostile to the private sector, seeking to exclude business representatives from key meetings and to impose an anti-business agenda. Leading U.S. and European business groups, and the global ICC network, need to confront that discrimination, while actively supporting and growing the mutually beneficial relationships that do exist after over 70 years of consultative status with various UN agencies.

I have laid out a long and challenging agenda. I very much look forward to working with François Georges and his dynamic team at ICC France in all of these important areas. We have a lot to do, and a lot more that we can do together. Let’s get to work.

USCIB Commends Release of First US National Action Plan on Responsible Business Conduct

USCIB vice president Ariel Meyerstein attended a ceremony to mark the release of the U.S. National Action Plan (NAP) on Responsible Business Conduct last week in Washington DC.  The ceremony demonstrated interagency support and coordination in completing the NAP and featured speakers from the U.S. Department of Commerce, U.S. Department of Labor, U.S. Department of Treasury and the U.S. Department of State.

“This is quite an achievement and we commend everyone who was involved in this complex process,” said Meyerstein. USCIB co-hosted the first public consultation on the NAP two years ago and has since advocated alongside its global partners and other major business organizations for the U.S. and other governments to develop these strategic planning tools to implement the State Duty to Protect under Pillar 1 of the UN Guiding Principles on Business and Human Rights. Meyerstein noted that, when done well, NAPs can help support businesses in implementing their responsibility to respect human rights in their own operations and those of their business partners.

At last month’s UN Annual Forum on Business and Human Rights, USCIB joined several leading business associations active in business and human rights discussions to issue a statement on NAPs globally, urging Member States to complete their processes for creating NAPs, which less than ten Member States have done thus far (with several dozen remaining in various stages of completion). The statement also urged states to engage with the business community to learn from first-hand experiences in dealing with human rights impacts, particularly since companies have an increasing level of experience in implementing policies and practices.

“This first U.S. NAP lays a great foundation,” Meyerstein said, “particularly as it brings together in one place all of the initiatives in which the entire U.S. government has been engaged for years – and in many instances, leading global efforts, whether on government transparency and anti-corruption or forced labor, child labor and human trafficking.”  Meyerstein added, “all of these areas are critical to the success of global companies who do business all over the world and therefore rely on the U.S. government to bring additional pressure to raise global standards and to ensure that other government actors do their fair share in protecting human rights and regulating what is ultimately anti-competitive misconduct by bad actors.”

If the U.S. government does not have a seat at the table in negotiating these standards or working towards their implementation, Meyerstein concluded, then “not only are there likely to be more human rights abuses, but U.S. companies will bear more of the costs in the long-run.”

The NAP is available here.

Hold the Date: ICC Institute Masterclass for Arbitrators

ICC Institute Masterclass for Arbitrators: Overview of fundamentals and best practices related to serving as an arbitrator

Please save the date for the upcoming ICC Institute Masterclass for Arbitrators: Overview of fundamentals and best practices related to serving as an arbitrator,

Date: March 13-15, 2017

Location: Washington, DC

This advanced level training will provide participants with an opportunity to gain a deeper insight into some of the provisions of the 2012 ICC Rules of Arbitration while learning about the latest developments and best practices related to serving as an international arbitrator.

Topics to include:
• The role and appointment of arbitrators
• Establishing the arbitrator’s authority to create a suitable working framework
• Conduct of the proceedings and case management techniques
• Mock arbitral tribunal to explore issues pertaining to relations between arbitrators
• Drafting enforceable awards and scrutiny by the ICC International Court of Arbitration

Who should attend:
• Practitioners who have significant experience in international commercial arbitration as counsel, but little or no experience as arbitrators.
• Arbitrators who wish to reinforce their knowledge.

Registration information will be circulated when it is available. If you are interested in attending, please email Alexandra Akerly.

BIAC Holds Business Day to Discuss OECD Role at G20 and B20

biac_business_daySenior business leaders from BIAC’s global membership and key OECD representatives met on December 8 at the OECD in Paris to discuss OECD’s Contributions to the G20 and the B20. The high-level panel addressed the G20 and the German Presidency and was framed by panels addressing policy topics in Employment and Education, Responsible Business Conduct/Anti-Bribery, Trade and Investment, Digital Economy, and Energy, Climate and Resource Efficiency. The day was rounded off by remarks from Frédéric Sanchez, president of France’s business association, MEDEF, and CEO of Fives.

 

USCIB was represented by Jonathan Huneke, USCIB’s vice president for communications and public affairs, and BIAC Vice Chair and USCIB Board Member Rick Johnston.

 

For more information on BIAC’s Business Day, please visit their website.

USCIB Facilitates Dialogue on US-China Cybersecurity

USCIB’s Eva Hampl (center) and Barbara Wanner alongside Tad Ferris, Foley and Lardner (right)

USCIB facilitated an off-the-record dialogue with U.S. Government officials on the topic of U.S.-China cybersecurity last week in Washington DC. The meeting brought together officials from the White House, FBI, Department of Homeland Security, Department of Commerce, and USTR. After brief introductions by Tad Ferris, partner at Foley & Lardner LLP and chair of USCIB’s China Committee, Barbara Wanner, USCIB’s vice president of ICT policy and Eva Hampl, USCIB’s director, investment, trade and financial services, the group received a strategic overview of the U.S.-China cybersecurity relationship from Christopher DeRusha, senior cybersecurity advisor, Office of the Federal Chief Information Officer.

Discussions focused on the issue of cybersecurity from the perspective of different agencies. One of these perspectives was highlighted in a panel on trade-related aspects of the U.S.-China cybersecurity relationship, which was discussed by Jonathan McHale, deputy assistant USTR for Telecommunications and Electronic Commerce Policy, Office of the U.S. Trade Representative and Christopher Wong, international trade specialist, Office of China and Mongolia, Department of Commerce.

Another panel addressed progress on law enforcement cooperation and international cooperation against third party threats.  This was discussed by Amit Kacchia-Patel, unit chief, Federal Bureau of Investigation and Jordana Siegel, director, international affairs, Department of Homeland Security.

Hampl_Cybersecurity_Mtg12162016
USCIB’s Eva Hampl moderates panel at U.S.-China Cybersecurity Meeting

“Cybersecurity is an issue of growing concern for USCIB members, which is reflected in our submission of Priority Issues for the U.S.-China Joint Commission on Commerce and Trade, as well as our annual Statement on China’s Compliance with its WTO Commitments” said Hampl.

USCIB also recently signed on to a multi-association letter on China’s draft Cybersecurity Law and related pending cybersecurity regulations and measures.

Click here to read USCIB’s submission of Priority Issues for the U.S.-China Joint Commission on Commerce and Trade (JCCT)

Click here to read USCIB’s Statement on China’s Compliance with its WTO Commitments