Communication Department Archives

USCIB, Deloitte Host Roundtable on Streamlining Transatlantic Customs

Published on February 26, 2016

USCIB-Deloitte Event SpeakersWith the U.S. Customs Reauthorization bill having been recently signed into law, and the European Union (EU) preparing for the pending implementation of the changes to the Union Customs Code (UCC) this year, USCIB worked with Deloitte to put together a roundtable discussion about current issues facing transatlantic trade in the Customs space.

The event, titled “Strengthening Customs Efficiencies to Facilitate Trade and Investment: Current Dynamics Shaping Customs in the U.S. and the EU,” took place on the morning of February 17 at the Washington, D.C. offices of USCIB member General Electric. The off the record roundtable brought together business, government and other key stakeholder groups for an informal discussion on some of the key dynamics shaping customs policy in the U.S. and the EU and their impact on helping drive forward a strong and integrated transatlantic economy.

Speakers at the roundtable will included Jerry Cook (HanesBrands) Chair of the USCIB Customs Committee; Fernand Rutten (Deloitte) who briefed the committee on the UCC last month; Nasim Delami Fussell, Trade Counsel, House Ways and Means Subcommittee on Trade, and Christina Kopitopolous, Director, Customs and Trade Affairs, WTO and Multilateral Affairs Office, USTR. USCIB Director of Customs and Trade Facilitation Megan Giblin moderated the roundtable discussion.

“This was a very timely discussion that explored the opportunities and challenges in dealing with customs fit for the 21st century,” said Giblin. “The transatlantic voice has much to offer in helping shale a way forward.”

Participants talked about how the United States and the EU are working to streamline customs rules and regulations that are more appropriate for today’s global and digital marketplace. They addressed how such customs developments are aligning – or not – with the Trans-Atlantic Trade and Investment Partnership negotiations, the World Trade Organization Trade Facilitation Agreement and other trade liberalization initiatives to further integrate both economies.

Reforms Make Myanmar Open for Business

Published on February 26, 2016

Dawn in Bagan

Over the past several years the Obama administration has engaged the government of Myanmar to advance a range of political reforms aimed at strengthening the country’s rule of law and economy. Steps taken by the United States to normalize relations with Myanmar, including lifting an import ban, have brought tangible benefits to the people of Myanmar as well as to American companies, who have made positive contributions to Myanmar society through their high standards of corporate social responsibility.

On February 18, USCIB joined four other business groups urging U.S. cabinet officials not to renew sanctions against Myanmar in light of the country’s recent democratic reforms. Myanmar held elections last year that neutral observers noted were free and fair. Given this progress, the U.S. business community believes expanded economic relations with Myanmar are appropriate. Remaining sanctions should be eliminated, the business groups argued, because they create uncertainty for investors.

“The remaining U.S. sanctions are a significant reason why U.S. investment in Myanmar remains modest and Myanmar entrepreneurs cannot truly take advantage of their putative access to the American market,” USCIB and the other groups said in a statement. “By contrast, virtually all other countries that had previously maintained sanctions against Myanmar have removed them entirely, placing U.S. companies who wish to invest in Myanmar or otherwise support engagement at a unique disadvantage.”

The statement concludes that not renewing sanctions against Myanmar would signal the beginning of a new relationship with a country that has made substantial progress toward improved governance and the rule of law.

Changes to US Model Tax Treaty “Very, Very Complicated”

Published on February 26, 2016

taxes-portLast year the U.S. Treasury department announced proposed changes to the U.S. Model Income Tax Treaty, which is the model text used by American officials when they negotiate tax treaties with other countries. According to a press release issued by Treasury in May 2015, “The revisions to the U.S. Model text are intended to ensure that the United States is able to maintain the balance of benefits negotiated under its treaty network as the tax laws of our treaty partners change over time, and to deny treaty benefits to companies that change their tax residence in an inversion transaction.”

USCIB and other business groups have expressed concern that the treaty provisions tilt too far in the direction of denying inappropriate claims of treaty benefits. Although Treasury recently narrowed some of the anti-tax evasion provisions to be more palatable to the U.S. business community, tax practitioners say that the model’s reception will be uncertain, especially among America’s treaty partners.

Speaking to Bloomber BNA, USCIB Vice President for Tax Carol Doran Klein noted that the treaty is complex and will be difficult to negotiate with other nations.

“It’s really, really complicated, which is not surprising,” Klein said. “I do think that some of the novel provisions have been modified, which is better. But it’s going to be really difficult to get this negotiated and also to apply it.”

Uncertainty also remains as to how the proposed changes to the U.S. model tax treaty might impact the OECD’s work on Base-Erosion and Profit-Shifting (BEPS).

USCIB sent a letter to the U.S. Treasury on September 14 expressing concern with proposed U.S. model tax treaty changes, which in part attempt to prevent double non-taxation of income between tax treaty partners. While acknowledging that the treaty provisions address legitimate concerns, USCIB said that the draft provisions “tilt too far in their attempt to prevent inappropriate claims of treaty benefits.”

Obama Signs Customs Bill, Now Focus Shifts to Implementation

Published on February 25, 2016

Obama_Customs_BillPresident Obama signed the Trade Facilitation and Trade Enforcement Act, commonly referred to as Customs Reauthorization, into law on February 25, just two weeks after the Senate approved the bill. This bipartisan bill is the first true Customs modernization legislation in nearly two decades.

The legislation will strengthen trade enforcement at U.S. ports and borders, and update the organization and management of the U.S. Customs and Border Protection. The bill includes provisions that streamline and facilitate trade, reduce business costs and paperwork burdens, and provide an enforcement mechanism for trade agreements.

“It is timely then for us to be signing this bipartisan customs bill because it’s an important milestone in our trade agenda,” said President Obama at the signing ceremony. “This is an example of smart trade policy in the 21st century.”

USCIB has been a longtime supporter of Customs Reauthorization and has strongly advocated for policies that eliminate trade barriers, harmonize global customs and border procedures, as well as modernize outdate laws. The bill includes the following provisions: increased de minimis; updated returns processes; end of year 2016 ITDS deadline; specified CBP engagement with private sector; avoidance of US WTO compliance matter; improved IPR provisions (i.e., providing unredacted samples to rights holders); drawback simplification; and more!

“We welcome the signing of the Customs bill and thank the Administration and Congress for their hard work on this key bipartisan legislation that meets the needs of business,” said Megan Giblin, USCIB’s director for customs and trade facilitation. “Our focus on this bill’s provisions will now turn to implementation, and we look forward to working with the administration to ensure its success.”

OECD: Increase Private Investment in Developing Markets

Published on February 23, 2016

Global_Development_ChartThe United Nations estimates that the world will have to contribute over $4 trillion annually to finance the Sustainable Development Goals. It is clear that official development assistance from public coffers will not be enough to meet this daunting financing challenge. Private investment will not only be welcome, but indispensable for moving from “billions to trillions” in development finance.

Recognizing the much-needed role of business in this effort, OECD governments agreed last week at the High-Level Meeting of the OECD Development Assistance Committee (DAC) to enable greater private-sector investment in developing markets.

“The successful implementation of the Sustainable Development Goals will hinge to a large extent on the mobilization of private investment,” commented Marie Gad, vice chair of the BIAC Development Committee. “And to make that happen, the DAC is breaking new ground to create an enabling environment and help mitigate the risks facing foreign and domestic businesses investing in developing markets.”

Key elements agreed by OECD DAC member governments include:

  • A new OECD DAC work program to focus on good practices for providing concessional public international finance (such as loans, guarantees, equity holdings, and mezzanine finance) to investment projects in developing economies in order to attract international private capital.
  • A set of principles for the measurement of official development assistance designed to reflect the effort of donors in providing the right incentives and removing disincentives for instruments that engage private-sector investment.
  • A new measure that will track the Total Official Support for Sustainable Development (TOSSD), which will be agreed by October 2016, after which initial data collection will get underway in 2017, leading to a report to the UN 2030 Development Agenda implementation review in 2019. TOSSD will measure – and help encourage – private-sector financial flows generated through donors’ actions.
  • DAC engagement in the Global Partnership for Effective Development Cooperation will seek to expand the application of the OECD’s Policy Framework for Investment, as well as other OECD tools and analyses, aimed at strengthening the enabling environment for businesses in developing economies.

A number of steps now taken by the DAC correspond with a paper by the Business and Industry Advisory Committee to the OECD released in 2014 “Private Sector Perspectives on Private Sector Financing for Sustainable Development.“

Read the Communiqué of the OECD DAC High Level Meeting

USCIB 2016 APEC Priority Issues and Recommendations

Published on February 23, 2016

APEC_PERUThe Asia-Pacific Economic Cooperation (APEC) is comprised of 21 member economies, which account for approximately 40 percent of the world’s population, over 50 percent of the world’s total GDP and half of the world’s trade. It is the top economic forum in the region that actively encourages economic growth, regional cooperation and trade and investment.

The APEC forum has established partnerships with the private sector to leverage the many economic, trade and regulatory opportunities available in the region. Each year, USCIB issues a statement outlining business priorities and recommendations in the region.

USCIB’s 2016 APEC policy priorities reflect our longstanding and overarching objectives of promoting open markets, competitiveness and innovation, sustainable development and corporate responsibility. USCIB members have identified key issues that are detailed in this paper and cover the following areas:

business ethics
chemicals
climate change
corporate social responsibility
cross-border data flows
customs transparency and trade facilitation
digital trade
environmental goods and services
food and agriculture
foreign direct investment
global value chains
good regulatory practices
healthcare and regulatory policy

infrastructure
innovation policy
intellectual property rights enforcement
localization barriers to trade
metals
privacy
self-regulation in marketing and advertising
services
state-owned enterprises
trade facilitation in remanufactured goods and e-waste
trade liberalization
women in the economy

Read the USCIB 2016 APEC Priority Issues and Recommendations

Businesses Celebrate American Heart Month

Published on February 22, 2016

heart_cardio_resized_ssby Helen Medina

February marks American Heart Month, a great time to commit to a healthy lifestyle and make small changes that can lead to a lifetime of heart health. According to the American Heart Association, nearly 801,000 people in the U.S. died from heart disease, stroke and other cardiovascular diseases in 2013. That’s about one of every three deaths. The direct and indirect costs of cardiovascular diseases and stroke total more than $316.6 billion, including health expenditures and lost productivity. 

As innovators and employers, companies are only as strong as the communities that they work in and serve, and they are committed to offering and developing essential medicines and technological solutions for consumers.

USCIB’s members understand the importance of health and wellness, both for their employees and for the wider communities in which they operate, because healthy, happy employees are more productive. Many U.S. companies are innovators when it comes to promoting heart health, in addition to supporting a holistic approach to health and wellness. As innovators and employers, companies are only as strong as the communities that they work in and serve, and they are committed to offering and developing essential medicines and technological solutions for consumers. Additionally, companies are forging innovative public-private partnerships that educate and encourage populations to develop and maintain healthy lifestyles, while also investing in new technologies and innovations that fight diseases.

Given the importance of a healthy lifestyle and the private sector’s role in helping achieve this, USCIB has been working with the Business and Industry Advisory Committee to the OECD (BIAC) to organize a Forum on Innovation in Health and Well-Being from May 3-4. This forum will inform discussions for OECD Health Ministers when they meet in 2017 to discuss the next generation of health reforms.

The BIAC Forum will provide an opportunity to:

  • Exchange solutions and policy recommendations with high-level representatives from the business community, governments and leading voices in the field.
  • Learn more about the innovations and on-the-ground partnerships private sector is undertaking.
  • Explore how healthy populations can be a strong pillar for increased economic productivity and societal well-being.

Please stay tuned as we continue developing the program for this Forum. Due to limited space, the event is by invitation only.

Read last month’s USCIB Health Blog entry, We’ve All Got to Work Together on Global Health Challenges

USCIB-NYU Stern Fellowship in Business and Human Rights

Published on February 22, 2016

In order to run companies successfully, business leaders must have an awareness of human rights and corporate social responsibility issues and an understanding of how to confront them. For the second year in a row, USCIB has partnered with the NYU Stern Center for Business and Human Rights to offer first-year MBA students a paid opportunity to work at a multinational company on a business and human rights challenge during their summer. USCIB is inviting member companies to participate in the fellowship program that matches talented NYU Stern MBA students interested in corporate responsibility with USCIB members willing to provide a hands-on summer internship opportunity.

The deadline to apply is February 29, 2016. This year’s participating USCIB members include Facebook, New Balance, Newmont Mining and PepsiCo. All applicants will go through at least two rounds of interviews. First, a number of qualified NYU Stern MBA students will be selected by the Center from a general pool through an application and interview process. Applications of initially selected candidates will then be forwarded to participating companies so they can select which candidates they would like to meet for a second round interview. Each company will be able to make the final decision as to which candidate, if any, to extend an offer.

Last year, two fellows interned with USCIB members PepsiCo and DirectTV Latin America. The fellows discuss their experiences in blog posts here and here, as well as in the video below:

The fellows had very substantive experiences, completing tasks through their internships that contributed directly to key business operations and strategy in the area of CSR, sustainability and human rights

USCIB Heads to Peru for APEC Policy Dialogues

Published on February 22, 2016

APEC_PERUSupporting six million American jobs and hosting two thirds of the global middle class, the Asia-Pacific region is of great interest to the business community, as global companies are eager to tap the region’s growing markets. The Asia-Pacific Economic Cooperation (APEC) forum – the most influential economic dialogue in the region – continues to be a priority for USCIB members, as it is key to accelerating regional economic integration and promoting balanced, sustainable growth.

To aid private-sector engagement in the dialogue, USCIB works with the U.S. APEC business coalition to give members access to APEC officials and participate in APEC meetings throughout the year, culminating in the APEC CEO Summit, a meeting of CEOs and leaders from the APEC economies.

USCIB is in actively engaged in a number of the APEC working groups related to customs, product policy, and information and communication technologies. Each year, USCIB compiles an APEC priorities and recommendations paper to help direct and coordinate work with our members and APEC officials.

Three of USCIB’s policy team will be attending the upcoming first APEC Senior Officials Meeting (SOM 1) in Lima Peru, which began this past weekend.

Action on trade facilitation

Megan Giblin, USCIB’s director for customs and trade facilitation, will participate in the APEC Alliance for Supply Chain Connectivity (A2C2) and the Subcommittee on Customs Procedures meetings, and will identify linkages to the work underway within the USCIB Customs and Trade Facilitation Committee including, but not limited to, e-commerce, single-window efforts, and other aspects that tie directly to WTO TFA implementation.

Giblin was also confirmed last week as the industry Co-Chair to the APEC Subcommittee on Customs Procedures Virtual Working Group (VWG) along with the government of New Zealand. USCIB both helped create the working group and has facilitated its work, co-chairing the group, since its inception. The VWG is comprised of both customs officials and members of the private sector.

Smarter chemicals regulations

Helen Medina, USCIB’s vice president of product policy and Innovation will attend the APEC Chemical Dialogue (CD) meetings to support USCIB’s work and recommendations on a coordinated approach to implementation of the Globally Harmonized System of Classification and Labeling of Chemicals (GHS) and future GHS capacity building workshops. Medina will also support USCIB’s Customs priorities in the area of Chemical Import Procedures.

USCIB will continue to encourage work within the CD on metals risk assessment, specifically follow-up to the workshop on this topic in 2015 as well as the dissemination of pending OECD metals assessment scientific guidance as joint OECD-APEC guidance for APEC Economies.  Lastly, Medina will meet with the Lima Chamber of Commerce, Peru’s most representative organization promoting Peru’s global economic integration, to share USCIB priorities during the Peru host year and collaborate on areas of mutual interest.

Facilitating cross-border data flows

Barbara Wanner, USCIB’s vice president of ICT policy will participate in the SOM 1 meetings of the Electronic Commerce Steering Group (ECSG), with particular focus on the Data Privacy Subgroup. The meetings will focus on expanding APEC economies’ understanding of and participation in the Cross-Border Privacy Rules system (CBPR). The CBPR system requires firms in participating economies to develop their own internal business rules on cross-border data privacy procedures, complying with the system’s minimum requirements. The meetings will also explore a selection of next-generation privacy issues, such as data portability, open data and privacy, and big data.

Wanner  will also participate in a special workshop, “Building a Dependable Framework for Privacy, Innovation and Cross-Border Data Flows in the Asia-Pacific Region,” which will set the stage for subsequent discussions on APEC CBPR and other privacy issues during the informal and formal ECSG and DPS meetings.

If you would like any further information on the above meetings or issues, please feel free to reach out to our team.

Customs: Megan Giblin, mgiblin@uscib.org
Chemicals: Helen Medina, hmedina@uscib.org
ICT and Data Privacy: Barbara Wanner, bwanner@uscib.org
APEC priorities: Rachel Spence, rspence@uscib.org

Fighting Efforts in the UN to Degrade Intellectual Property Rights

Published on February 19, 2016

intellectual_propertyOne of the most contentious issues during the United Nations COP21 climate negotiations was the push by NGOs and some countries to frame intellectual property (IP) rights as a barrier to environmental goals. USCIB and other business groups made a strong case for IP frameworks, arguing that innovation is crucial for developing solutions to the world’s climate challenges, and thanks to their efforts IP was not mentioned in the final climate treaty agreed to in Paris last year.

However, significant challenges to IP are proliferating throughout the UN system, and concerns remain about the Paris Agreement’s implementation and subsequent climate negotiations. To help push back against attacks on IP protection, USCIB and five other business associations sent a letter to U.S. Senator Orrin Hatch urging the U.S. government “to safeguard innovation at multilateral institutions.”

The letter notes that there is positive precedent for such an approach by the United States, as several IP experts from the American delegation at COP21 worked together to ensure that the Paris Agreement’s text didn’t mention IP and removed uncertainty that could have discouraged continued investments by U.S. companies in clean technology.

Challenges to IP have also arisen in the recently announced UN High Level Panel (UNHLP) on Access to Medicines, and at other international regulatory institutions such as the World Health Organization (WHO). In both cases, the business community is worried that innovators’ perspective will not be taken into account in the agencies’ policy deliberations. The letter encourages the U.S. to prevent the UNHLP and WHO from “constraining business involvement to the detriment of innovation.”

“U.S. leadership will be essential to managing diverse initiatives across the UN system…to ensure that they do not undermine innovation,” the letter stated. “All relevant U.S. government agencies must be aligned in such efforts.”

Read the full letter.