Communication Department Archives

New Survey Finds Worsening Global Shortage of Trade Finance

Published on October 7, 2016

2016 ICC Global Survey on Trade Finance shortfall_sourceBusiness executives have identified a sharp decrease in the availability of financing for cross-border trade, according to the latest annual survey of global trade finance from the International Chamber of Commerce. According to the survey — which received 357 responses from 109 countries worldwide — 61 percent of respondents reported a global shortage of trade finance . Only 52 percent of respondents reported an increase in trade finance activity, compared to 63 percent in 2015 and 80 percent in 2012. Furthermore, the perceived shortfall came predominantly from regional and global banks — 78 percent and 56 percent respectively, compared to 41 percent of national banks.

ICC Secretary General John Danilovich said: “We must emphasize the importance of trade finance. It is often forgotten – trade finance has dropped off the international agenda. We need to do more to communicate its central importance to the global economy.”

Read more and download the survey on the ICC website.

 

USCIB Welcomes Selection of Guterres as New UN Secretary General

Published on October 7, 2016
Mr. Antonio Guterres former United Nations High Commissioner for Refugees addressed the press at the stakeout after the casual meeting with member states
Antonio Guterres of Portugal. UN Photo/Manuel Elias

New York, N.Y., October 7, 2016 – The United States Council for International Business (USCIB), which represents American business views to the United Nations and other international bodies, applauded the selection of Antonio Guterres of Portugal as the next UN secretary general, succeeding Ban Ki-moon.

“The selection of Prime Minister Guterres is a welcome signal of agreement among Security Council members on the urgent need to address the refugee crisis and other pressing global issues, many of which will require significant input and assistance from the private sector,” said USCIB President and CEO Peter M. Robinson. “His leadership at the helm of the United Nations will be essential to developing robust international frameworks that business needs in order to innovate and thrive.”

The Security Council’s selection of Guterres, the former Portuguese prime minister who served for 10 years as UN high commissioner for refugees, will be formally voted on by the UN General Assembly next week.

USCIB Chairman Harold McGraw III, who also serves as honorary chairman of the International Chamber of Commerce, added: “The American business community understands the importance of multilateral cooperation, whether on trade, investment or climate change, and we know the UN system is the anchor for this essential collaboration. We look forward to continuing to work in partnership with the UN to successfully address global problems to provide increased economic growth and prosperity across the world.”

Robinson also expressed appreciation for the outgoing UN secretary general’s achievements and dedication to partnering with business. “Throughout the UN deliberations on sustainability and climate change, Secretary General Ban has consistently sought to work with the private sector, recognizing that today’s economic and environmental challenges require private sector solutions and investment,” he said.

Companies of all sizes and from all sectors have already pledged to respond to the refugee crisis through a series of initiatives – from funding campaigns to delivering essential training programs. USCIB’s global network is encouraging companies to do more where they can, based on their own assets and capabilities.

Separately, USCIB welcomed the entry into force of the Paris Agreement, the global pact on climate agreed at last year’s COP21 summit. USCIB and its global business network have provided significant substantive input to the UN climate negotiations since their inception, and they are working to develop a formal channel for private-sector views and solutions to the agreement going forward.

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 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

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

Washington Update: August – September 2016

Published on October 6, 2016

washington-Lincoln-MemorialsDuring the months of August and September, 2016, USCIB Staff met with Robert Holleyman, Deputy USTR, Angela Ellard, House Ways and Means, and Michael Tracton and Julie Zoller, U.S. Department of State; produced a series of comment letters on OECD BEPs discussion papers; discussed WTO priorities with key officials in Geneva; submitted extensive comments on China’s compliance with its WTO commitments; participated in the Third APEC Senior Officials Meetings (SOM 3); and much more.

Download the full update.

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

Business Urges U.S. Government to Push Back Against Efforts to Expand ITU’s Jurisdiction

Published on September 27, 2016

Womans controls Internet of Things in smart home with appNew York, N.Y., September 27, 2016 – Representing a broad cross-section of the information and communications technology (ICT) sector, the United States Council for International Business (USCIB) released a statement today outlining business priorities for the upcoming World Telecommunication Standardization Assembly 2016 (WTSA-16). The meeting will convene from October 25 to November 3 in Tunisia to determine the work program of the United Nations’ International Telecommunication Union Telecommunication Standardization Sector (ITU-T), which develops international recommendations for the telecommunication sector.

While USCIB appreciates the ITU’s role in developing international standards that promote the smooth functioning of global telecommunication networks, the business group opposes expanding the ITU’s remit to include Internet governance policy.

“We urge the U.S. government to push back strongly on efforts by some member states to use the WTSA-16 review of the ITU-T’s work program as an opportunity to expand the ITU’s jurisdiction to include various Internet governance issues,” USCIB said in the statement. “A multi-stakeholder framework has proved far more effective in addressing Internet policy matters against a dynamic technological backdrop than binding rules developed by an inter-governmental organization.”

The business community also expressed concern about proposals to expand the role of governments in fostering the Internet of Things (IoT), citing the danger that such an expansion of the ITU’s remit would “support government mandates that will stifle rather than promote the benefits of IoT.” USCIB stressed that there should be no mandates or regulation of emerging technologies.

USCIB supports the efforts of the U.S. government and other sector members at the WTSA-16 to underscore the value of the ITU in “developing important technical and voluntary telecommunications standards,” the statement added.

“Expanding its work program beyond its current remit would compromise the Sector’s ability to meet its current goals,” the statement concludes. “Moreover, such an expansion would negatively impact industry’s ability to address Internet governance-related issues and explore standards and best practices for emerging technologies that are more effectively addressed in existing multi-stakeholder policy-making and standards-setting bodies.”

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, 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

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.