Communication Department Archives

New Report Surveys US Efforts to Assist Companies Overseas

Published on March 24, 2016

Money_globeAmerican commercial diplomacy programs must adapt quickly to today’s global marketplace, characterized by global value chains, integrated production networks and strong competitive pressures for ever-greater efficiency. “Support for American Jobs,” a new report from the American Academy of Diplomacy co-authored by Academy members Shaun Donnelly, USCIB’s vice president for investment and financial services, and Chuck Ford a retired director general of the Foreign Commercial Service and former U.S. Ambassador to Honduras. The report provides recommendations to the U.S. Departments of State and Commerce to inform the development and execution of government programs that help U.S. companies do business abroad.

“The international consensus on the accepted ‘rules of the game’ has broken down, with the emergence of alternative approaches that have yet to fully mature into next-generation rules to guide world trade and investment,” the authors write in the report’s executive summary. “Intellectual property rights, copyrights, trademarks, designs, and trade secrets will be crucial to maintaining America’s competitive edge, yet they will only work if our economy has skilled workers and creative entrepreneurs who are supported by the right policy environments.”

The report notes that global value chains are core contributors to business success internationally and job creation domestically, and that U.S. commercial diplomacy programs that support America’s competitive position must become a central tenet of U.S. foreign policy. To that end, the report provides six recommendations for government action:

  • Develop, as rapidly as possible, a new policy framework to guide the design of a next-generation commercial diplomacy program to advance US national interests in the ever-more-challenging global economy.
  • Review existing commercial diplomacy programs to identify programmatic and personnel capacity gaps and to present solutions so that ambassadors and their teams will be fully equipped to advance our national interest.
  • Set up a private sector consultative mechanism to ensure systemic oversight of commercial diplomacy programs in cooperation with the private sector.
  • Assess new collaborative programs and partnerships with private enterprises to advance national economic and commercial interests across the global marketplace.
  • Create a formal cooperative mechanism to oversee human resources talent-management systems for economic and commercial officers and local employees so as to enhance successful outcomes in recruiting, retaining, and developing the strongest possible team to execute commercial diplomacy programs across the foreign affairs platform.
  • Build a formal mechanism to coordinate economic/commercial training and education programs, with a particular focus on creating new partnerships with private partners to meet the priority business requirement of short customized courses on cutting-edge issues, many of which are vastly complex in the emerging technology sector.

Donnelly contributed to the report’s section on U.S. business views on global value chains and foreign investment, noting the frustration from the business community that arises from a sense that the U.S. government does not understand the importance of global value chains and foreign direct investment for doing business in the 21st century.

“Business representatives perceive that key aspects of US trade and investment policy are based on a simplistic mercantilist view that exports are good but imports are bad; that inward investment/FDI is good but outward investment is bad,” the report states. “Many business representatives would welcome a serious, substantive review by the government on US global investment policy, both inward and outward, in today’s and tomorrow’s globalized economy.”

Before joining USCIB, Donnelly had a 36-year career in the State Department’s Foreign Service, concentrating on international economic policy.  He served as principal deputy assistant secretary of state for economic and business affairs from 2000 to 2005 when he moved to the Office of the U.S. Trade Representative (USTR) at the White House as assistant USTR in charge of Europe and the Middle East. Earlier he had served as U.S. Ambassador to Sri Lanka and Maldives. At various times he was also deputy assistant secretary of state in charge of international trade policy, international energy policy, and economic sanctions.

The report’s findings were drawn from interviews with more than 50 corporate executives, including USCIB members, and senior executives at the Departments of State and Commerce.

Download “Support for American Jobs: Requirements for Next-Generation Commercial Diplomacy Programs”

ILO Will Review MNE Declaration

Published on March 24, 2016

The International Labor Organization’s (ILO) 1977 Declaration of Principles concerning Multinational Enterprises and Social Policy (MNE Declaration) provides guidelines for regulating the conduct of global businesses and defines the terms for their relations with workers and host countries in the developing world. The ILO Governing Body has recently discussed the possible review of the declaration, which was last updated in 2006, with some groups pushing for a full revision of the text that could include additional burdens and obligations on businesses.

While the business community, represented within the ILO by the global employers’ group facilitated by the International Organization of Employers (IOE), supports the MNE Declaration and recognizes the importance of updating it to reflect recent developments – such as the endorsement of the United Nations Guiding Principles on Business and Human Rights – the employers’ group does not believe a more comprehensive revision of the declaration would be needed.

During a meeting of the ILO Governing body this week, the employers’ group warned against any excessive revision of the declaration for the following reasons. First, any major changes to the declaration could create a conflict between it and other international regulatory texts, such as the OECD Guidelines on Multinational Enterprises, which has a chapter on Employment and Industrial Relations that is already carefully aligned to the existing text of the MNE Declaration. Significant changes to the MNE Declaration  could create confusion for OECD member states and the companies subject to the Guidelines’ recommendations, which were substantially revised in 2011 after much multistakeholder discussion. Second, the employers noted it is unrealistic to believe that the text can be fully updated in just one year, in time for the 40th anniversary of the declaration in 2017. Finally, the employers’ group argued that given the ILO’s limited resources, money should be invested in essential work in the field, rather than formal bureaucratic procedures in Geneva.

Although the employers called for a limited revision of the declaration to be executed by the ILO Secretariat, the ILO governing body agreed to undertake a full revision of the Declaration through a tripartite working group over the coming year, with the aim of completing the update in time for the text’s 40th anniversary. However, the employers’ group was able to negotiate a clause in the text regarding the structure of the tripartite working group, which underlines that the tripartite working group will make its decisions by consensus. This provision will give the employers considerable leverage as the process unfolds.

More information on the ILO’s decision can be found on the IOE’s website.

Global Nutrition: What Is the Private Sector Doing?

Published on March 22, 2016

SDG Goal 2 End hunger, achieve food security & improved nutrition, promote sustainable agriculture

By Helen Medina

Did you know that March is National Nutrition Month in the United States?  For policymakers, nutrition is top of mind.  In fact, the United Nations Sustainable Development Goals place nutrition and the mission to “End hunger, achieve food security and improved nutrition, and promote sustainable agriculture” at number 2 only after Goal 1 which is to “End poverty everywhere.”

It is indisputable that nutrition provides a vital foundation for human development and is central to meeting one’s full potential.  Nutrition is also important from an economic point of view. Hunger and under-nutrition weaken the mental and physical development of children and adolescents. This in turn lowers the work capacity and income potential of adults and leads to huge social and economic costs. According to estimates by a 2013 UN Food and Agriculture Organization report, hunger and under-nutrition cost the global economy an estimated 2-3 percent of global gross domestic product, equivalent to $1.4-2.1 trillion per year.

The private sector is a key actor in providing nutrition from investing in agriculture; to improving the social, economic and environmental practices in farming and the supply chain; to mobilizing, innovating, and finally delivering agricultural products and food.

So what is the private sector doing on nutrition? For starters, the private sector is a key actor in providing nutrition from investing in agriculture; to improving the social, economic and environmental practices in farming and the supply chain; to mobilizing, innovating, and finally delivering agricultural products and food.  As an employer, the private sector also has a vital role in increasing the livelihoods of society as a way to address poverty, malnutrition and under-nutrition. But that’s not the whole picture. It’s far from it and more can be done. One stakeholder alone can’t solve complex nutrition challenges.

The importance of good governance policies and regulations that support private sector involvement in agriculture should not be underestimated. Access to finance and empowering women is also crucial for improving nutrition around the world. Women are often the family’s primary caretakers and they tend to invest in their children’s health. It’s therefore important for governments to promote policies that help women become farmers, traders and entrepreneurs. Promoting trade and investment in agriculture is also crucial for combating global hunger. There is significant evidence from UN reports that demonstrate increased trade, particularly in the agriculture and food industry, raises the standard of living in developing countries and improves the performance of national economies, all of which are necessary for healthy societies.

Additionally, multi-stakeholder partnerships should be encouraged. More and more of these types of approaches are widely recognized as necessary to increasing the scope of financial and human resources in order to tackle nutritional challenges on a large scale. The private sector often partners with governments and researchers to innovate and create new tools for farmers that improve nutrition. It is essential for all stakeholders to work together and develop a global food system that improves people’s nutrition in a sustainable way. We are committed to public-private partnerships that support nutrition strategies and to preserving natural resources to continue to grow food which is necessary for nutrition.

USCIB Monthly Health and Nutrition Blog

February: We’ve All Got to Work Together On Global Health Issues

January: Businesses Celebrate American Heart Month

Business Urges Policymakers to Avoid Trade-Distorting Data Privacy Measures

Published on March 21, 2016

dataflows

Paris and New York, March 22, 2016 – Some 10.2 billion new connected devices are expected to come online over the next five years – nearly double the number in existence today. Many of these devices will transmit user data for processing across borders. But a proliferation of forced localization measures and other government policies to restrict cross-border data transfers threaten to choke off essential cross-border electronic commerce.

Businesses from across the developed world are urging policymakers to avoid imposing rules on data privacy and security that distort global trade. In a new paper, BIAC, the Business and Industry Advisory Committee to the OECD, points to the crucial role of cross-border data flows for the recovery and future of the global economy, and calls on the OECD and governments to develop policies and regulatory frameworks that address concerns for security and privacy in the least trade-distorting way.

“Governments must avoid restricting trade through data localization measures”, said Clifford Sosnow, chair of the BIAC Trade Committee and partner with the Canadian law firm Fasken Martineau LLP. “Considering the importance of this issue for competitive markets, this paper offers recommendations to address the impact of data localization and at the same time deal with privacy and security concerns.”

The BIAC paper had significant input from the U.S. private sector via BIAC’s American affiliate, the United States Council for International Business. The paper estimates that, if fully enacted, government forced localization measures currently in place, or under consideration, could reduce global trade by $93 billion annually.

BIAC recognizes the OECD’s unique capacity to gather and develop evidence on trade restrictive measures on data flows, and accordingly requests the OECD to:

  • highlight to governments the impact of data localization on trade and investment
  • raise awareness among all industries on the importance of data flows for business operations and participation in global trade
  • promote policies that enable open flow of data, to support the rapidly growing number of business models that rely on data flows.

BIAC will work with the OECD to promote best practices in the field of cross-border data flows and encourage governments to refrain from measures that compromise the benefits of open markets and investment for growth.

Read the BIAC policy paper.

Defending Investor Protections in Trade Agreements

Published on March 18, 2016
Shaun Donnelly
Shaun Donnelly

Investment protections such as the Investor-State Dispute Settlement (ISDS) mechanism have become the most contentious aspect of many ongoing trade deals, including the Trans Pacific Partnership (TPP). Shaun Donnelly, USCIB vice president for investment and financial services, traveled around Europe this week defending strong investment policies in U.S. trade agreements.

On March 14, Business and Industry Advisory Committee (BIAC) to the OECD Investment Committee Chair Winand Quaedvlieg and Donnelly led business panelists in an all-day OECD conference on “Investment Treaties: the Quest for Balance.” NGO, labor and academic speakers pressed for radical changes and reduced protections ‎in investment agreements. Donnelly’s panel focused on possible changes in the ISDS regime, including the EU’s proposed investment court and appellate body system.

“I argued the U.S. model BIT already offers a balanced investment regime and that many so-called reforms were simply political attacks on investor rights and protections,” Donnelly said. “I, along with other speakers and participants, was skeptical of the EU’s ‎proposals to abandon the ISDS arbitration system.”

USTR’s lead investment negotiator for TTIP, Jai Motwane, was a co-panelist with very similar positions. Senior State Department Investment policy makers Lisa Kubiske and Michael Tracton spoke on other panels.

Donnelly attended other consultations throughout the week in Paris, both formal and informal, on investment issues with OECD Investment Committee members, senior OECD staff, and country delegations. He participated in the OECD’s special ministerial meeting on Anti-Bribery on March 16 with Klaus Moosmayer from Siemens, Chair of the BIAC Task Force on Anti-Bribery and Corruption. U.S. Attorney General Loretta Lynch led the U.S. Delegation to the special ministerial meeting.

Donnelly wrapped up in The Hague‎ on Friday, representing USCIB at the International Chamber of Commerce’s Trade and Investment Commission, chaired by USCIB member Jim Bacchus (Greenburg Traurig). USCIB has contributed to major ICC policy papers on investment and cross-border data flows that were discussed at the meeting.

Read BIAC’s media release: Curbing Bribery and Providing a Level Playing Field for International Business

Curbing Bribery and Providing a Level Playing Field for International Business

Published on March 18, 2016

scalesParis, March 16, 2016 –The Business and Industry Advisory Committee to the OECD (BIAC) actively participated in the OECD Ministerial which brought together Ministers from the 41 State Parties as well as other key partner countries to the Anti-Bribery Convention. BIAC called for close private sector involvement in an ambitious OECD strategy to fight corruption and bribery.

“BIAC recognizes the OECD’s strong capacity to work horizontally in the fight against foreign bribery”, said Klaus Moosmayer of Siemens, who chairs the BIAC Task Force on Anti-Corruption/Bribery. “Close public-private cooperation is essential to effectively curb foreign bribery and provide a real level playing field for international business.”

In preparation for the OECD Ministerial meeting, BIAC identified key business priorities for governments to fight against bribery and corruption:

  • Encourage effective implementation of the OECD Anti-Bribery Convention as well as increase adherence to the OECD Anti-Bribery Convention,
  • Address the demand side of bribery,
  • Recognize compliance efforts and self-reporting from companies.

BIAC calls for a comprehensive OECD anticorruption strategy which benefits from the OECD’s strong capacity to work in a cross-cutting manner and with the private sector as a key partner.

The full BIAC statement is available here.

Read more: Defending Investor Protections in Trade Agreements

ICC: Trade Policymakers — Here are Your Priorities

Published on March 10, 2016

newspapers_lo-resInternational Chamber of Commerce (ICC) Secretary General John Danilovich urged policymakers to revitalize cross-border trade in a letter to the editor of the Financial Times on March 9.

The letter is available on the Financial Times’s website, and has been reproduced below:

Sir, Your editorial on the regulation of cross-border services (“New global trade under old national rules”, March 7) rightly highlights the imperative for trade policymaking to keep pace with changing patterns of global commerce. But the growing importance of data, services and investment does not obviate the need for policymakers to take urgent action to revitalize cross-border merchandise trade.

The tendency to explain sluggish trade growth by reference to structural shifts in the global economy obscures some of the key factors underlying the recent fall in global merchandise trade — and, in doing so, underplays the potential for simple policy levers to be deployed to boost global growth. Three areas, in particular, warrant further attention.

First, urgent action is needed to address the growing shortage of bank finance to support trade. According to the Asian Development Bank, there is currently a $1.4tn financing gap for trade globally — with small businesses often facing severe difficulties accessing the credit they need to trade internationally. Second, it is time for the international community to get serious when it comes to tackling protectionism. Recent research shows that the sectors in which world trade has fallen the most are those which have been hit hardest by trade barriers over the past two years. This is a worrying trend and one which should be a first-order priority for the G20 in the year ahead.

Finally, governments should ratify and implement the World Trade Organisation’s landmark Trade Facilitation Agreement without delay. This deal — forged in 2013 but ratified by only 70 governments to date — would have a transformational effect on the ability of small business to access global markets by reducing unnecessary red tape at borders. Official estimates suggest that the deal could add more than $1tn to global trade flows, creating 20m jobs in the process. A push to realise the real-world benefits of this agreement would bring a somewhat more optimistic outlook for the future of trade-led growth and development.

John Danilovich
Secretary-general,
International Chamber of Commerce,
Paris, France

World Trade Week 2016

Published on March 10, 2016

New York HarborUSCIB is a proud partner of World Trade Week NYC, an active network of more than 40 organizations in the New York metro region working together to underscore the importance of international trade, logistics and port operations on the region’s economy and to use their collective expertise to help the region’s businesses grow through international trade.

Every year, the President of the United States declares the third full week of May as World Trade Week. Trade organizations, businesses and other stakeholders come together both nationally and locally to promote and facilitate international trade in the U.S. economy. The New York tri-state region’s trade and transportation community celebrates World Trade Week throughout the month of May, offering a full agenda of educational seminars, global business networking events and the International Trade Awards Breakfast that recognizes the exemplary achievements by practitioners in the field.

We work together to:

  • Recognize the contribution of international trade to economic growth and job creation in the New York metropolitan region
  • Highlight the link between international trade and transportation and the region’s economic well‐being
  • Celebrate companies and organizations succeeding in the global marketplace and highlight their contribution to the region’s economy
  • Share knowledge, resources and ideas to facilitate small business success internationally
  • Provide scholarships to undergraduate students of international business

Find out more at the World Trade Week 2016 website.

USCIB Applauds Plan to Transition Stewardship of Key Internet Functions, Urges U.S. Government Approval

Published on March 10, 2016

Digital GlobeNew York, N.Y., March 10, 2016 – The United States Council for International Business (USCIB) welcomed a comprehensive package of proposals developed by numerous Internet stakeholders including the private sector, which will enable global stewardship of the domain name system (DNS) and enhance accountability of the Internet Corporation for Assigned Names and Numbers (ICANN), which manages the global domain name system.

The proposals, if approved, would permit the transfer of the stewardship of the Internet Assigned Numbers Authority (IANA), a set of core functions necessary for the running of the Internet domain name system, from the U.S. Commerce Department’s National Telecommunications and Information Administration (NTIA), to the multi-stakeholder Internet community, with safeguards to enable active involvement by the in processes designed to hold ICANN accountable as an independent entity.

“While some have argued that the Internet should be overseen by governments, the two-year process that culminated in this plan demonstrates that the multi-stakeholder model of Internet governance works,” said USCIB President and CEO Peter M. Robinson. “This model is clearly the most appropriate means for considering issues that could affect the operation of the global Internet as we move forward.”

At an ICANN meeting wrapping up today in Marrakesh, Morocco, ICANN’s board approved the proposal and immediately transmitted it to NTIA.

“USCIB worked actively to help shape this ground-breaking initiative,” said Robinson. “We believe that the final product will meet NTIA’s criteria for the transition of the IANA stewardship role and ensure the continued stability, security and resiliency of the domain name system as well as fundamental openness of the Internet. We urge NTIA to approve the plan.”

The package combines the technical requirements for the IANA stewardship transition with important, interrelated enhancements to ICANN’s accountability to replace the “backstop” function provided by NTIA’s current contract with ICANN.

“USCIB believes this package will best ensure the continued security and stability of the domain name system and preclude its capture by a government or governmental entity, which is one of NTIA’s important criteria,” according to Barbara Wanner, USCIB’s vice president for information, communications and technology (ICT) policy.

On ICANN accountability, USCIB said the proposal would empower the Internet community through use of a bottom-up, multi-stakeholder model. “There are details that still need refinement, such as the drafting of bylaws,” said Wanner. “We look forward to helping shape these as part of the continued open and consultative implementation process.”

According to Wanner, USCIB contributions to the processes of encouraging the IANA stewardship transition and enhancing ICANN’s accountability have reflected cross-sectoral and cross-community perspectives. She noted that, as an association composed of more than 300 multinational companies, law firms and business associations, the organization’s membership represents a broad cross-section of leading global companies in the ICT sector. Moreover, USCIB members come from both the “contracted house” of ICANN – those companies that serve as registries and registrars of Internet domain names – as well as the “non-contracted house,” which encompasses others in the private sector.

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 the International Chamber of Commerce (ICC), the International Organization of Employers (IOE) and the Business and Industry Advisory Committee (BIAC) to the OECD, USCIB provides business views to policy makers and regulatory authorities worldwide, and works to facilitate international trade and investment. More at www.uscib.org.

Contact:
Jonathan Huneke, USCIB
+1 917.420.0039, jhuneke@uscib.org

More on USCIB’s ICT Committee

USCIB Webinar Series: Bretton Woods II, March 23

Published on March 10, 2016

Globe with Money UnderneathUSCIB will host a webinor on Bretton Woods II, New America’s multi-stakeholder platform for reducing global volatility, which will take place Wednesday, March 23 from 11:00 a.m. – 12:00 p.m. EST. This will be the third webinar in the USCIB Corporate Responsibility series; please see below for further information on the series.

To register, please fill out the registration form here.

The non-partisan BWII, led by Tomicah Tilleman, is working with a large coalition of organizations – including the White House, the World Bank, McKinsey, Gates Foundation, and a range of long-term asset holders – to demonstrate that large long-term financial actors (institutional investors like pension funds and sovereign wealth funds) can significantly increase their long-term returns by dedicating a percentage of their holdings to investments that address root causes of volatility, i.e. poverty, corruption, poor governance and the lack of rule of law. Such directed investments can also improve investment climates in countries throughout the world in ways that have a multiplying effect for multinational enterprises. BWII also presents an opportunity for companies with unique competencies to lend their talents to this important endeavor.

Featured speaker

Tomicah Tillemann is a leader in the fields of social impact, civic innovation, and diplomacy. He currently serves as Senior Fellow and Director of New America’s Bretton Woods II.

Between 2010 and 2014, Tillemann served under Hillary Clinton and John Kerry as the Secretary of State’s Senior Advisor for Civil Society and Emerging Democracies. Tillemann led a team of experts that operated like venture capitalists in translating promising ideas and technologies into successful foreign policy. He also established and chaired the State Department’s Global Philanthropy Working Group and the State Department’s Federal Advisory Committee on civil society.

Tillemann joined the State Department in 2009 as Secretary Clinton’s speechwriter and collaborated with her on over 200 speeches. Previously, he spent four years on the professional staff of the Senate Foreign Relations Committee as an advisor to Chairmen Joe Biden and John Kerry. Tillemann’s other professional experience includes work with the White House, five U.S. Senate and Congressional campaigns, Reuters New Media, and the World Bank.

Tillemann is a co-holder of four patents on advanced clean technologies and a co-founder of IRIS Engines. He serves on the Advisory Board of BitFury, the world’s largest provider of blockchain infrastructure, and has helped launch and lead numerous civil society organizations and foundations. He received his B.A. magna cum laude from Yale University and holds a Ph.D. with distinction from the School for Advanced International Studies at Johns Hopkins University (SAIS). He has lectured at Yale and Princeton and testified repeatedly before Congress. He is a frequent guest on the BBC, NPR, and other news outlets.