Communication Department Archives

USCIB, NYU Host Dialogue About U.S. Plan on Responsible Business Conduct

Published on December 22, 2014
Ambassador Elizabeth Cousens, U.S. Representative to the UN Economic and Social Council, speaking at the NAP dialogue on December 15 at NYU Stern’s campus.
Ambassador Elizabeth Cousens, U.S. Representative to the UN Economic and Social Council, speaking at the NAP dialogue on December 15 at NYU Stern’s campus.

In September, President Obama said the administration would develop a U.S. National Action Plan (NAP) to promote responsible business conduct abroad consistent with the United Nations Guiding Principles on Business and Human Rights.

As part of the consultative process leading up to the development of the action plan, U.S. officials will attend a series of open dialogues hosted by independent organizations where stakeholders can provide input on the NAP process and content.

USCIB and New York University’s Stern School of Business hosted the first event in this series on December 15 on the NYU campus.

Ambassador Elizabeth Cousens, U.S. Representative to the UN Economic and Social Council, speaking at the NAP dialogue on December 15 at NYU Stern’s campus.

U.S. government representatives from the Department of Labor, Department of State and the U.S. Mission to the United Nations came together at the open dialogue to gather input from the private sector and other stakeholders that promote respect for human rights internationally.

“There is in fact a huge new appreciation for the role of the private sector and business generally,” said Ambassador Elizabeth Cousens, U.S. Representative to the UN Economic and Social Council. “And what business can do, together with communities and civil society, to contribute to development and human rights.”

The dialogue began with a plenary session, where Ariel Meyerstein, USCIB’s vice president for labor affairs, corporate responsibility and corporate governance, moderated a panel with representatives from the State and Labor Departments on the development of the U.S. National Action Plan. The plenary was followed by small workshop discussions on a range of topics related to responsible business conduct.

The NAP will aim to unify government efforts in promoting best practices in the areas of human rights, labor rights, corruption and transparency abroad, with clear and predictable guidelines.

More about the National Action Plan can be found in the White House’s fact sheet and on the Business and Human Rights Resource Center website.

 

China Commits to Stronger IPR Protection at US-China Trade Meeting

Published on December 22, 2014

The 25th US-China Joint Commission on Commerce and Trade (JCCT) concluded last week in Chicago after two days of talks and negotiations. The JCCT is the primary forum for addressing bilateral trade and investment issues and promoting commercial opportunities between the United States and China. At the forum, United States Trade Representative Michael Froman and Secretary of Commerce Penny Pritzker and the Chinese delegation met with Chinese Vice Premier Wang Yang to discuss economic relations between the United States and China.

Officials from both countries made progress on agriculture market access. China committed to import American soybeans and dairy products, and announced that it would pursue dialogue with the United States on biotechnology in agriculture.

China made commitments on Intellectual Property Rights protection, agreeing to protect American companies’ trade secrets and to work on new trade secrets law to enhance protection. China also agreed to streamline China’s regulatory processes and cut red tape for American imports of new, innovative pharmaceuticals and medical devices, which should lead to increases in U.S. exports and jobs in these sectors. And on China’s anti-monopoly law, China committed to treat both domestic and foreign companies equally, and to provide increased transparency for companies under investigation.

With regard to the U.S.-China Bilateral Investment Treaty, USCIB joined several other business organizations in signing a letter to Vice Premier Wang Yang in anticipation of his participation in the JCCT to signal to the Chinese government the U.S. business community’s strong support for a high-standard BIT.

Staff contacts: Justine Badimon and Eva Hampl

More on USCIB’s China Committee

More on USCIB’s Trade and Investment Committee

2014 in Review: What Were You Most Interested In

Published on December 16, 2014

Time SquareAs we approach year’s end, here are links to our most clicked-on news stories of 2014:

  1. Chemicals Regulation Top-of-Mind at APEC (August) The chemicals trade cuts across multiple industries and contributes to the production of thousands of different products, from pharmaceuticals to computer microchips. At a key APEC meeting in China, government regulators met with industry representatives and other stakeholders to discuss opportunities and challenges in the chemicals industry.
  2. Contentious UN Treaty Vote on Business and HR (June) -Global business voiced concern over a vote by the UN Human Rights Council to negotiate a binding treaty on business and human rights, saying the vote could undermine ongoing efforts to implement the UN Guiding Principles on Business and Human Rights, which have garnered broad support among states, businesses and civil society.
  3. Schenk of UPS to Chair Global Customs Body (April)- The International Chamber of Commerce has named Norman Schenk of UPS to chair its Commission on Customs and Trade Facilitation, a key global forum to promote customs modernization and the elimination of red tape in cross-border trade.
  4. Promoting Responsible Investment in Myanmar (September) – USCIB strongly advocates for investment and responsible business practices in Myanmar. As the country makes strides towards reform, particularly with new child labor laws, significant investment opportunities await American and other foreign companies seeking to do business in Myanmar.
  5. USCIB Forum on Business and Human Rights (September) – The UN Guiding Principles established a framework under which states are obligated to protect – and businesses must respect – human rights. USCIB organized its annual human rights forum to review how companies are integrating human rights into their operations.
  6. USCIB Rolls Out ICC Antitrust Toolkit in U.S. (September) – Antitrust laws have proliferated rapidly in recent years, reflecting society’s increasing ethical expectations about the governance of business conduct. The ICC Antitrust Compliance Toolkit offers guidelines for companies big and small seeking to build a robust legal compliance program. USCIB and ICC unveiled the toolkit in the United States, with presentations from the Department of Justice and antitrust experts.
  7. USCIB Statement on China’s WTO Commitments (October) -China’s emergence as one of the world’s largest economies means that its policies impact its trading partners. USCIB submitted a statement to the U.S. Trade Representative providing member feedback on Chinese compliance with World Trade Organization commitments.
  8. Business Appeals to WTO Members to Save TFA (July) – The United States Council for International Business expressed dismay at the failure of World Trade Organization members to begin implementing the landmark Trade Facilitation Agreement, which would have boosted the global economy by $1 trillion. Final agreement on a protocol to implement the deal was blocked by objections from India and a few other developing countries.
  9. USCIB Trade Conference Spotlights Trade Policy Challenges (November) – With the uncertain future of the WTO’s Trade Facilitation Agreement and growing opposition to investor protections in regional trade deals, USCIB organized its first trade conference with the OECD on October 30 in Washington, D.C. to take stock of the global trade environment. The conference covered a wide range of trade and investment topics, and USTR Michael Froman gave keynote remarks.
  10. From Coast to Coast, Trade Equals Jobs(January) -Ever wonder how many jobs in your state are supported by international trade? As Congress looks at new Trade Promotion Authority legislation, you can find the answer with this helpful map from the Trade Benefits America Coalition.

USCIB’s free electronic newsletter, “International Business Weekly,” provides regular updates on our major activities and priorities.

Subscribe to our newsletter.

Staff contact: Christopher Zoia

More on USCIB’s Publications

USCIB Assails UKs Catch-22 Move to Tax Non-Resident Companies

Published on December 15, 2014

competitiveness2New York, N.Y., December 15, 2014 – The United States Council for International Business (USCIB) condemned proposed UK rules to impose a new tax on so-called “diverted profits,” saying the measure would, if implemented, have a major impact on U.S.-based multinational companies.

The rules, contained in UK Chancellor of the Exchequer George Osborne’s Autumn Statement, propose a new tax on diverted profits. Among other things, the proposed rules would impose a new tax on non-resident companies selling goods and services to UK customers by penalizing non-resident companies for avoiding a UK permanent establishment (“PE”).

“The UK’s proposal jumps the gun on ongoing discussions concerning the scope of taxation rights on non-resident companies,” said USCIB Vice President and International Tax Counsel Carol Doran Klein. “USCIB believes that the UK’s unilateral assertion of the right to tax so-called diverted profits is an undisguised attempt to bring more tax revenue into the UK, whether consistent with international norms or not.”

Klein said the UK move would undercut discussions in the 34-nation Organization for Economic Cooperation and Development (OECD) to develop rules on base erosion and profit shifting (BEPS). The BEPS project, which seeks to address growing concerns over non-taxation of certain cross-border operations and transactions by multinational firms, is examining a wide range of international tax rules, including those on permanent establishment.

“The goal of the multilateral discussions on BEPS is to reach consensus solutions to identified international tax issues,” Klein stated. “Unilateral assertions of taxing jurisdiction by any countryincrease the risk that other countries will simply abandon the process and act unilaterally. Such actions increase the likelihood of double taxation on companies, which will have a negative effect on cross-border trade and investment.”

The diverted profits tax PE rule would apply if a non-UK resident is: carrying on activity in the UK in connection with supplies of goods or services made by the non-resident company to customers in the UK without becoming subject to the UK corporate income tax;the UK tax authorities believe the non-resident is deliberately trying to avoid PE status; the non-resident’s total tax is reduced; and the company is large (sales of more than 10 million pounds in the UK).

This proposal would greatly expand UK taxing rights of non-resident companies that currently do not have sufficient presence in the UK to be subject to the regular corporate income tax, according to Klein. “Because the diverted profits tax applies when a UK nonresident does not have a PE and is imposed at a higher rate, companies will be encouraged to increase their UK presence to become subject to the regular corporate income tax,” she said. “That is, they would increase investment within the UK to pay more tax at the regular rate or pay the diverted profits tax at the higher rate on profits that will be subjectively determined by HMRC. That’s the Catch-22. “

Klein said the proposal would clearly override existing tax treaties and cause harmful double taxation. “It is intended to apply when there is no PE under the relevant rules,” she said. “Companies should be free to structure their affairs taking into account the rules as they are. If they do not have a PE under those rules, then they should not be subject to tax on their business profits. Countries should not be able to disregard agreed-upon rules simply because they do not like the outcome.

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 the Business and Industry Advisory Committee 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.

More on USCIB’s Taxation Committee

FT: Business Calls for Greater Say in Climate Talks

Published on December 10, 2014

Business leaders have called for a much bigger say in UN talks shaping a global climate deal in Paris in 2015, in a sign of growing concern about how the agreement may affect the private sector. USCIB President and CEO Peter Robinson is quoted: “We want to find an opportunity where we are more inside the tent than on the sidelines.”

Business Calls for Greater Say in Climate Talks

In FT USCIB Urges Stronger Business Participation in UN Climate Talks

Published on December 10, 2014
USCIB President and CEO Peter Robinson at a press conference in Lima, Peru on December 8. “If a global agreement on climate change doesn’t work for and with businesses, it just won’t work,” he said.
USCIB President and CEO Peter Robinson at a press conference in Lima, Peru on December 8. “If a global agreement on climate change doesn’t work for and with businesses, it just won’t work,” he said.

USCIB President and CEO Peter Robinson and USCIB Vice President Norine Kennedy are in Lima, Peru this week for the UN climate talks (COP20). Robinson took part in a press briefing yesterday alongside other members of the International Chamber of Commerce (ICC), including James Bacchus of Greenberg Traurig, chair of the ICC Commission on Trade and Investment.

Both Robinson and Bacchus are quoted at length in an article in today’s Financial Times, “Business calls for greater say in climate talks,” calling for a much bigger role for business in the UN climate negotiations. Here are some key quotes from the article, which is available in its entirety on the FT’s website
(subscriber login may be required):

Robinson: “If a global agreement on climate change doesn’t work for and with businesses, it just won’t work.”

Bacchus: “This issue is important for governments to address but it is far too important to leave to governments alone.”

Robinson: “We want to find an opportunity where we are more inside the tent than on the sidelines. We are concerned that we are not as fully engaged now as the world needs us to be.”

Bacchus (on the need for an agreement to guarantee open markets for trade and investment): “What kind of access will developing countries have to the new green technologies they need if they restrict trade and restrict investment?”

You can access recent statements and other materials from the Lima conference on USCIB’s webpage dedicated to COP20. We are also tweeting from Lima using the hashtag #BizCOP20.

Staff contact: Norine Kennedy

More on USCIB’s Environment Committee

UN Secretary General Private Sector Critical for Sustainable Development

Published on December 9, 2014

green buildingsOn December 4, the United Nations secretary general submitted an advance version of the synthesis report to the UN general assembly outlining his views on the UN’s Post-2015 Development Agenda outcomes.

Titled “The Road to Dignity by 2030: Ending Poverty, Transforming All Lives and Protecting the Planet,” the report will inform member states’ negotiations of the Post-2015 Development Agenda, including the Sustainable Development Goals (SDGs) to be agreed upon in September 2015. The UN SDGs, which lie at the core of the UN’s ambitious Post-2015 Development Agenda, aim to address sustainable development through international commitments by governments and other sectors, finance and partnerships.

The secretary general envisions a strong role for business in his report, noting that “[a]n enabled properly regulated, responsible and profitable private sector is critical for employment, living wages, growth, and revenues for public programs.” The report adds: “Transforming business models for creating shared value is vital for growing inclusive and sustainable economies.”

An Open Working Group process in 2014 consisting of inputs from a wide variety of stakeholders and member states led to 17 draft SDGs. In his report, the secretary general has sought to inspire action and make these draft SDGs more easily absorbed by member states and other stakeholders by proposing a six pillar framework around – People, Dignity, Prosperity, Planet, Justice and Partnership. Promoting “decent work” is embedded as a core element in promoting prosperity “to grow a strong, inclusive and transformative economy.”

The private sector’s contribution is acknowledged in several paragraphs: “We know that forward-looking companies are taking the lead by transforming their business models for sustainable development, and that we have only scratched the surface of the potential for ethics-driven investment by the private sector.”

Key points of interest to business from the synthesis report:

  • The priorities identified by business for the sustainable development agenda are shared by many other stakeholders and are seen as essential elements to achieving the SDGs.
  • Acknowledgment that business is already innovating for sustainable development and stands ready to contribute more, given appropriate enabling environments.
  • A new framing of the goals and targets that will inspire public-private partnerships and mobilize essential actors.
  • Emphasis on the need to stimulate private money flows to pay for the Post-2015 agenda goals.

Staff contacts: Norine Kennedy and Ariel Meyerstein

More on USCIB’s Environment Committee

More on USCIB’s Corporate Responsibility Committee

USCIB Member Wins State Departments Corporate Excellence Award

Published on December 9, 2014
L-R: Charles Rivkin (U.S. State Dept.), Cathy Novelli (U.S. State Dept.) and Ahmet Bozer (Coca-Cola). Photo Credit: U.S. State Department.
L-R: Charles Rivkin (U.S. State Dept.), Cathy Novelli (U.S. State Dept.) and Ahmet Bozer (Coca-Cola).
Photo Credit: U.S. State Department.

For the fourth time in five years, a USCIB member has won the U.S. State Department’s Award for Corporate Excellence, an honor bestowed on U.S. companies that undertake responsible business activities to improve lives and advance the needs of local communities around the world.

The Coca-Cola Company received the 2014 Corporate Excellence Award for providing disaster relief services to areas in the Philippines devastated by Typhoon Haiyan. Coca-Cola improved water quality through its efforts to support watersheds, increase access to safe water, and educate communities on water conservation.

The company also partnered with the Philippines Department of Education to increase access to primary education for more than 60,000 disadvantaged children.

This year’s other awardees included Wagner Asia Equipment for its commitment to public-private partnerships in Mongolia to protect the environment, and EcoPlanet Bamboo Group for its sustainable development work regenerating degraded pasturelands in Nicaragua. Wagner is one of the largest Caterpillar dealers in the western United States, and Caterpillar is a longtime USCIB member.

Ariel Meyerstein, USCIB vice president for labor affairs, corporate responsibility and corporate governance, reflected that the awardees’ efforts were “perfect examples of the way the private sector can minimize its impacts on the environment and society and also proactively partner with the public sector to respect and promote basic human rights where they operate, which is key to securing and preserving their social license to operate.”

Shaun Donnelly, USCIB’s vice president for investment and financial services, and Eva Hampl, director for investment trade and financial services, attended the Corporate Excellence Award ceremony at the State Department, officiated Cathy Novelli, undersecretary of state for economic growth, energy and the environment, and Ambassador Charles Rivkin, assistant secretary in the bureau of economic and business affairs at the State Department. Novelli presented the Corporate Excellence Award to Ahmet Bozer, Coca-Cola’s executive vice president and president of Coca-Cola International.

Coca-Cola also won the Corporate Excellence Award in 2002 for its work in Egypt. Recent USCIB member winners have included Intel in 2012, Proctor and Gamble in 2011, and Cisco in 2010. Two other USCIB members, General Electric and Chevron were among the other finalists for this year’s award.

Read Ambassador Rivkin’s remarks at the 16th Annual Awards for Corporate Excellence.

For more information on State’s Corporate Excellence Award, please visit: http://www.state.gov/e/eb/ace

Staff contacts: Shaun Donnelly and Eva Hampl

All Set for New ICC Dispute Resolution Rules Global Launch

Published on December 9, 2014

gavelThe International Chamber of Commerce (ICC) will launch its new 2015 ICC Expert Rules in January, with international events in three of the world’s major dispute resolution hubs. Entering into force on February 1, 2015, the Rules will be available in English, Spanish and French, helping to solve cross-border commercial disputes worldwide.

The 2015 ICC Rules set out new parameters for ICC expert services, clarifying how parties can use experts and neutrals to help resolve their cross-border disputes at each step of the way. They will be administered by the ICC International Center for Alternative Dispute Resolution (ADR).

“The new set of rules clarifies the broad range of expert services the Center offers with a view to supporting companies and states all around the world to efficiently resolve their complex commercial disputes,” said Christopher Newmark, chair of the ICC Commission on Arbitration and ADR.

Drawing on ICC’s 40-year experience in cross-border dispute resolution, and with specialist input from its membership in over 90 countries, the ICC Commission on Arbitration and ADR will replace the current ICC Rules for Expertise with three new sets of rules. Each covers a distinct area of ICC’s dispute resolution services: the Proposal of Experts and Neutrals, the Appointment of Experts and Neutrals, and the Administration of Expertise Proceedings.

“International business has turned to ICC for many years to identify the most suitable experts for the resolution of technical, financial or legal issues,” said Peter Wolrich, head of ICC’s Taskforce for the Revision of the Expert Rules. “And will certainly continue to do so under the new sets of rules.”

The ICC Expert Rules will be officially unveiled in New York on January 27, 2015.

Staff contact: Josefa Sicard-Mirabel