USCIB Talks OECD Accession with Brazilian Ambassador

On the heals of USCIB’s mid-March virtual meeting with newly sworn-in U.S. Ambassador to Brazil Todd C. Chapman, USCIB senior staff, led by Senior Vice President Rob Mulligan, had an excellent introductory call with Brazilian Ambassador Nestor Forster on April 2.  Ambassador Forster, currently charge d’affaires heading the Brazilian Embassy in Washington DC, is awaiting formal confirmation by the Brazilian Senate to assume the title of Brazilian Ambassador to the U.S. Ambassador Forster reached out to USCIB seeking an early direct connection with the organization as the representative of U.S. business to the OECD and U.S. government on all things OECD, including accessions.

USCIB Senior Adviser Shaun Donnelly and Senior Director for Investment, Trade, and Financial Services Eva Hampl joined Mulligan on the call.  Ambassador Forster’s embassy economic counselor also joined.

Ambassador Forster strongly reaffirmed Brazil, and its President Jair Bolsonaro’s, commitment to the OECD accession process as a key pillar of the government’s overall economic reform strategy and move to a more market-based, private sector-driven, competitive economy.

The Ambassador committed that the Brazilian Government would work closely with USCIB and other business organizations from OECD member countries in the “Business at OECD (BIAC)” consortium throughout the accession process – in Paris, in Brazil and in Washington.

“We were able to assure the Ambassador that USCIB and our member companies see Brazil’s OECD accession process as a high priority,” said Donnelly, who is a former U.S. Ambassador and now serves as USCIB’s senior adviser. “We were also able to preview some early specific priority areas where we expected the international business community and OECD member governments would be pressing Brazil for important reforms. We agreed to stay in close contact with Ambassador Forster’s team at the embassy.”

USCIB’s Hampl will be the key staff coordinator on accession issues but almost all USCIB policy staff and committees will be involved in the rigorous review of Brazil’s candidacy by each of the OECD’s committees and related bodies.

“We really appreciate Ambassador Forster making time for an early call with USCIB about Brazil’s OECD accession process,” said Mulligan. “We anticipate working closely with his embassy team, key U.S. government agencies, the OECD staff, our Brazilian counterpart business group CNI, and, of course, all our USCIB members and committees, throughout this important and rigorous accession process.  As the formal accession process gets underway via a formal invitation letter from the OECD Secretary General, we will draw on our experience from Colombia’s accession process.  But even in advance of that formal launch, we will begin seeking member company views and priorities on key issue areas.”

Several times during the meeting, Ambassador Forster emphasized that Brazil would also be seeking to negotiate a comprehensive Free Trade Agreement (FTA) with the United States, at the same time as it is pressing ahead its OECD accession candidacy. USCIB staff indicated USCIB’s interest in such an agreement, noting it would need to comprehensive and high-standard.

IOE Hosts Digital Conference of COVID Impact on Global Trade, Supply Chains, Employment

The International Organization of Employers’ (IOE) hosted a digital conference on the impact of COVID-19 on global trade, supply chains and employment on April 8. The conference addressed the “pause button” placed on the global economy in efforts to limit the spread of the COVID-19 pandemic and endeavored to answer questions such as: whether trade activities will return to normal, how many jobs will be lost, whether companies can continue producing and whether global production chains will be revamped after the crisis.

USCIB Senior Director, Investment Trade and Financial Services Eva Hampl participated as a speaker.

In her comments, Hampl emphasized the importance of maintaining an open trade and investment climate, pointing to these conditions as being necessary to rebuild the economy post crisis.

“USCIB is working with our various partners and affiliates to develop policy that looks toward addressing the current problems, but also retaining the structures that work, and rebuilding those that were affected by the crisis,” said Hampl. “Right now the global economy is still in triage and international cooperation is key at this moment. High level statements like the G20 leaders’ statement committing to work with the World Health Organization (WHO), International Monetary Fund (IMF), World Bank, United Nations and others to address the crisis, or the World Trade Organization (WTO) and World Customs Organization (WCO) coming together in a joint statement pledging to work together to facilitate trade in essential goods such as medical supplies, food and energy, are necessary and welcome to business at this time. As the global economy deals with this crisis and looks to rebuilding, business will be a key driver and partner of the recovery process.”

G20 Trade Ministers Release Statement on COVID-19

The G20 Trade Ministers met virtually on March 30 amid the COVID-19 pandemic to discuss stepping up cooperation and coordination to protect human life and lay the foundations for a strong economic recovery and a sustainable, balanced and inclusive growth after the crisis. Following the meeting, the Trade Ministers posted a statement.

The statement emphasized: “As we fight the pandemic both individually and collectively and seek to mitigate its impacts on international trade and investment, we will continue to work together to deliver a free, fair, non-discriminatory, transparent, predictable and stable trade and investment environment, and to keep our markets open.”

USCIB Senior Vice President Rob Mulligan noted the significance of all G20 members being able to agree on this statement as a much-needed coordinated response to the crisis and is hopeful that governments will soon follow up with more specific action items they will implement to keep trade open and facilitate the flow of essential goods for dealing with the COVID-19 crisis.

In advance of the G20 Trade Ministers meeting, the International Chamber of Commerce (ICC) sent a letter from its Secretary General John Denton, which included ten concrete actions that trade ministers can take now to speed up the health response for COVID-19 and minimize the economic damage.  It also included points on the need to maintain momentum on World Trade Organization (WTO) reform and e-commerce negotiations.

USCIB Concerned Over Draft “Buy American” Executive Order

USCIB joined a broad group of national trade associations, as well as state and local organizations, to send a letter to U.S. Department of the Treasury’s Steven T. Mnuchin, U.S. Trade Representative (USTR) Robert Lighthizer, the U.S. Department of Commerce’s Wilbur Ross and the National Economic Council’s Lawrence Kudlow expressing concern over the Administration’s draft “Buy American” executive order.

The group believes that such an order could be counterproductive in the Administration’s ongoing efforts with American allies to respond to the COVID-19 pandemic and warns that the order may delay the discovery of a COVID-19 vaccine and other treatments, worsen shortages of critically-needed medicines and medical products, and undermine prospects for economic recovery.

The letter states: “Now more than ever, U.S. industries require access to international supply chains to produce critically-needed medical products. The United States simply does not produce all of the raw materials or intermediate goods that are essential to drug development or production of the medical equipment needed to thwart this pandemic. Preventing federal agencies from sourcing medical equipment and pharmaceutical ingredients from abroad — or that are made with non U.S. inputs — would only exacerbate the supply shortages racking the United States.”

The coalition also applauded the Administration’s focused response to the pandemic and emphasized that American companies will do whatever it takes to support America’s pandemic response and will continue to work hand in glove with government to get the job done.

USCIB’s Donnelly Retires; Will Take on a Consulting Role 

Shaun Donnelly

Vice President for Investment Policy and Financial Services Shaun Donnelly is retiring April 3 after eight and half years at USCIB.

Donnelly came to USCIB in 2011, after an impressive 36-year career as a Department of State Foreign Service Officer followed by shorter stints at two other leading Washington trade associations. Throughout his time at USCIB, Donnelly has been a leading voice for the U.S. and international business communities on a wide range of investment policy issues, speaking out forcefully and publicly, as well as privately, to the U.S. Administration, Congress and in international fora, from the OECD and World Trade Organization (WTO) to the UN Conference on Trade and Development (UNCTAD) and the UN Commission on International Trade Law (UNCITRAL).

Donnelly has also been a sought-after and a provocative speaker at investment conferences and seminars around Washington and around the globe.  But most importantly, Donnelly has always been willing and able to put his experience, his expertise and his rolodex to use to assist USCIB members, collectively and individually.

“It has been a real privilege to have Shaun as part of the USCIB team, and I’m delighted that he will continue on in an advisory role,” said USCIB President and CEO Peter Robinson. “Shaun is a global regulatory diplomat par excellence, never hesitating to stand up for private sector interests in a forceful, rational and compelling way.”

In the State Department’s Foreign Service, Donnelly served eight years as a Deputy Assistant Secretary of State (DAS) in the Bureau of Economic and Business Affairs, at various times leading policy on Trade, Energy and Economic sanctions.  For almost five of those years he was the Principal Deputy Assistant Secretary, the Department’s #3 economic policy official. Donnelly also served as U.S. Ambassador to Sri Lanka and Maldives and as Deputy Ambassador to Tunisia and Mali. In his final U.S. government assignment, Donnelly was detailed to the Office of the U.S. Trade Representative (USTR) as Assistant USTR in charge of Europe and the Middle East, running USTR’s largest regional office.  He retired from the Foreign Service with the personal rank of Career Minister, roughly equivalent to that of three-star general.

“Simply put, it’s time,” Donnelly said.  “It’s been a great run and I have really appreciated the opportunity to work with so many great colleagues at USCIB and in our member companies.”

For us at USCIB, the good news is that Donnelly has agreed to stay on in a consulting role, serving as a senior advisor to Robinson and USCIB Senior Vice President for Policy and Government Affairs Rob Mulligan, as well as to take on a few special projects.

“I look forward to staying involved behind the scenes with USCIB and helping where I can,” said Donnelly. “It’s a great organization and there is still a lot of important, challenging work to do.”

Op-Ed: Business Must Come Together to Respond to COVID-19 Now

Op-Ed by Scott C. Ratzan MD, Executive Director of Business Partners for Sustainable Development

Earlier this month, nearly 500 experts in public health, law and human rights wrote an open letter to U.S Vice President Mike Pence to act swiftly, fairly and effectively, warning that “the COVID-19 outbreak is unprecedented in recent American history, and there is no playbook for an epidemiological event of this scope and magnitude.”

Yet, just weeks later, we all are living with unprecedented turmoil from this novel coronavirus, COVID-19.

While the virus was named a Public Health Emergency of International Concern (PHEIC) by the World Health Organization (WHO), this is the seventh time we have had such a proclamation in the last two decades. H1N1 influenza, polio, ebola in West Africa and in the Democratic Republic of Congo and Zika, all abated and did not cause as much havoc. Financial markets are on a roller coaster, planes grounded and many of us sheltering in place or in a self-imposed or government-recommended quarantine.

The future of our public health and economy depend on how government officials, policymakers, leaders and our fellow citizens react.

This includes honest, coherent, transparent, and timely communication while providing adequate funding and support for the response. The health care system needs immediate resources for equitable and effective infection control and the means to effectively manage the disease.

As 24/7 news, interactive websites, social media and alerts fill our day, the virus continues to spread. Unfortunately, without a clear treatment or cure, fear and uncertainty results in a rich environment for misinformation and misguided actions.

COVID-19 is a test of our system’s ability to address a legitimate public health threat with an unknown trajectory. Multiple sectors must leverage knowledge, expertise, networks and resources to produce better public health outcomes. Being prepared with a plan and being proactive is the name of the game in prevention, mitigation and management of risk and the adverse consequences of any threat.

Business must play a critical role in planning, implementing and adapting to this crisis due to its wide reach, resources and impact on employees, partners and markets.

Communication from employers on coronavirus is the most credible source of information, according to a recent Edelman ten-country study (March 6-10). This is consistent with a 2020 Edelman Trust Barometer, which showed that “my employer” is the most trusted institution by 18 points over business in general and NGOs, and by 27 points over government and media.

Employers are central in communicating the response. The public needs the assurance that as more is learned, information will be shared accurately and clearly from sources they trust.

This emergent threat challenges our society to cooperate amongst all sectors, including government, media, technology platforms and the private sector.

We know that large scale communication campaigns that employ behavioral economics, health literacy and communication levers (mass and social media) can drive citizens toward healthier decisions. As COVID-19 continues to spread, the business sector’s historical hallmarks of innovation, efficiency and management can help address the challenge we face today.

There are some promising examples:

  • A COVID-19 Therapeutics Accelerator supported by Mastercard will join with the WHO, government and private sector funders and organizations to speed the response to the COVID-19 epidemic by identifying, assessing, developing and scaling-up treatments.
  • The USCIB is leveraging existing networks to catalyze partnerships to address challenges, such as COVID-19. This includes working with the International Organization of Employers (IOE) and the International Labor Organization (ILO) to distribute WHO guidance on simple and low-cost measures for creating a healthier and more productive workplace.
  • The International Chamber of Commerce (ICC) and Business at OECD (BIAC) are also working on the design of an action plan to reach millions of businesses with recommendations to help governments deal with the threat to the global economy.
  • The Global NGO Business Fights Poverty is collaborating with Business Partners for Sustainable Development (BPSD) to develop an online “challenge” discussion on how business should tackle the coronavirus challenge.
  • NBCUniversal, Viacom/CBS, iHeartMedia, The Atlantic, Disney/ABC Television and the Ad Council will donate advertising inventory for campaigns that will advise consumers about social distancing, steps that can be taken to protect the public and more.

While the WHO was established to advance “informed opinion and active cooperation on the part of the public” we have now learned that health issues are not confined to one organization or sector.

Only by working together, with the public and private sectors, we can advance a society where our livelihoods are not threatened by similar future outbreaks and create a resilient society capable of responding to any future threat we may face.

Scott C. Ratzan MD is Executive Director of Business Partners for Sustainable Development. He is Former Senior Fellow at Harvard Kennedy School Mossavar-Rahmani Center for Business and Government.

COVID-19 Responses: Our Global Network

USCIB is pleased to share the work being done related to COVID-19 across the world by our global network. For information on what USCIB member companies are doing to curb the impacts of COVID-19, visit our dedicated Member Responses page.

Table of Contents:

-International Chamber of Commerce (ICC)
-International Organization of Employers (IOE)
-Business at OECD (BIAC)
-USCIB Partners:

-Intergovernmental Forums:

  • United Nations
  • World Health Organization

International Chamber of Commerce (ICC)

Visit ICC’s dedicated site on COVID: https://www.covid.iccwbo.org/

Latest ICC News and Statements on COVID-19:

  • ICC Statement of tax measures to Save Our SMEs in response to COVID-19
  • ICC partnered with WHO to launch a comprehensive survey, an unprecedented private sector call to action to tackle Covid-19. One important contribution to the private sector effort is mapping responses by individual businesses; that is, actions taken by you and your teams. This survey – which takes a short time to complete – will not only provide ICC and WHO with new data and insights, but also reinforce key health messages. ICC will use your responses to provide updated information to businesses, and develop solutions that will help your company to tackle the consequences of the pandemic.
  • ICC publishes a COVID-19 Business Continuity Guide
  • ICC launched a new global campaign, #SaveOurSMEs, to help Micro, Small and Medium Enterprises (MSMEs) survive the COVID-19 pandemic. In a co-signed message to the ICC network, ICC Secretary General John Denton and ICC World Chambers Federation (WCF) Chair Hamad Buamim called on the ICC network to widely share the‘SOS’ Call to Action and engage with media using these campaign key messages.
  • While recognizing the essential role the private sector can play in minimizing the likelihood of transmission, a joint ICC-WHO statement calls on national governments to adopt a whole-of-government and whole-of-society approach in responding to the COVID-19 pandemic, and underscores the urgency for Heads of State and Government to make preventing the spread of the virus a top priority.

Recordings and presentations of recent virtual sessions:

  • ICC’s educational arm, the ICC Academy, will be hosting a series of livecasts and webinars on COVID-19 in the coming weeks, free of charge. As part of the COVID-19 response, the series will focus on three core areas: healtheconomy, and at a later stage: recovery.

International Organization of Employers (IOE)

IOE is mobilizing its network to provide information on business and employer organizations’ efforts to support members with safety and health measures, preventive actions to minimize disruption to productivity, strategies for mitigation of financial losses, and overview of government initiatives to reduce economic stress on business.

IOE is providing information based on regions (Americas, Africa, Asia, Europe and Central Asia), virtual conferences, and key documents from its global network. For more general information visit IOE’s dedicated page on COVID-19.


Latest IOE News and Statements on COVID-19:

  • The ILO released their third report on the impact of COVID-19 and the world of work.  The report estimates the drop in working hours in the current (second) quarter of 2020 is expected to be significantly worse than previously estimated.  The report recommendations include supporting international coordination on stimulus packages; simplifying and expediting procedures to access benefits, credit and loans; providing income support to businesses and workers; and continuing social dialogue throughout the reopening of economies to ensure safeguards workers and consumers.
  • The IOE and the International Trade Union Confederation (ITUC) and their constituents stand in solidarity with governments and underline the critical need for social dialogue at national and multilateral levels to design measures to overcome the impact of COVID-19. The two organizations have released a joint statementwhich contains several call of action points on business continuity, income security, social dialogue, policy coordination and coherence. The statement also notes that the 2019 ILO Centenary Declaration for the Future of Work contains critical elements.

Recordings and presentations of recent virtual sessions:


Business at OECD (BIAC)

Business at OECD (BIAC) believes it is now more important than ever that the OECD delivers the best policy advice both on short-term collective response measures, as well as the longer-term recovery plans that will soon need to be implemented. The extensive experience of the OECD, from its origins emerging from the Marshall Plan implementation to the 2008-2009 global financial crisis, makes the organization a unique forum to help governments achieve an effective balance between the health and economic needs of society. Evidence-based analysis, enhanced best practice sharing and improved coordinated collective actions will prove decisive.

NEW! Business at OECD key messages on the impact of COVID-19 international travel restrictions on services-trade costs

Initial OECD analysis on COVID-19:

For more information on what the OECD and Business at OECD (BIAC) are doing related to COVID-19, please visit their website: http://biac.org/coronavirus/.


USCIB Partners

American Chamber of Commerce to the European Union (AmCham EU)

On April 23, during AmCham EU’s “American Hour” online series for members, AmCham EU hosted USCIB President and CEO Peter Robinson alongside other distinguished U.S. business leaders: Myron Brilliant, Executive Vice President and Head of International Affairs, US Chamber of Commerce; and Nancy McLernon, President and CEO, Global Business Alliance. The panel discussed business view on COVID-19.

During the chat, CEO of AmCham EU Susan Danger moderated and provided opening remarks, noting, “As like-minded powers, the business community counts on the EU and the U.S. to work together, with the international community, in the fight against COVID-19. Now is the time to demonstrate the values we share in Europe, across the Atlantic and with the rest of the global community.”

Discover How GBA Members Are Fighting COVID-19

Global Business Alliance (GBA) is comprised of a diverse coalition of members whose businesses span numerous industries. These companies are utilizing their expertise, resources and dedicated employees to bring aid to the communities in which they operate and help eradicate the spread of the COVID-19 pandemic. For more information, visit the GBA website. To explore by sector or company, see below.

Medical Innovation


BayerbioMerieuxBoehringer IngelheimCSL BehringGlaxoKlineSmithNovartisNovo NordiskRocheSanofiSiemensTakedaTeva Pharmaceuticals

Manufacturing

Anheuser-BuschBoschDaimlerHitachiLVMHNissanPernod RicardPhilipsToyotaVolkswagen

Technology


EricssonSamsungTata Consultancy Services

U.S. Chamber of Commerce


Intergovernmental Forums (IGOs)

United Nations

  • The United Nations published a report titled “Shared Responsibility, Global Solidarity: Responding to the socio-economic impacts of COVID-19“. The report is a call to action, for the immediate health response required to suppress transmission of the virus to end the pandemic and to tackle the many social and economic dimensions of this crisis. It is a call to focus on people – women, youth, low-wage workers, small and medium enterprises, the informal sector and on vulnerable groups who are already at risk. Pages 6-7 of the report features a section on “Businesses and Corporations: Step Up to the Challenge
  • USCIB’s biweekly memo on “Business at the UN” flags events and decision points relevant to members, passes on intelligence and indicates next steps for business-relevant UN workstreams. If you would like to receive the memo, please contact: Claudia Herbert Colfer (ccolfer@uscib.org).

World Health Organization

Virtual ICANN Meeting Focuses on Domain Name System Abuse

In response to the COVID-19 pandemic, the International Corporation for Assigned Names and Numbers (ICANN) held its first virtual meeting, March 7-12. The week-long meeting was originally scheduled to take place in Cancun, Mexico and gather thousands of participants. According to USCIB Vice President for ICT Policy Barbara Wanner, who participated virtually, “Although the virtual format did not enable the face-to-face engagement that constitutes the ‘ICANN DNA,’ in ICANN President Goran Marby’s words, ICANN 67 nevertheless enabled the stakeholder community to engage in discussions on a prioritized set of domain names system (DNS) issues and move forward current work-streams.”

In particular, ICANN’s Business Constituency (BC), of which Wanner serves as representative to the Commercial Stakeholder Group (CSG) and which also includes several USCIB members, reiterated acute concerns expressed at ICANN 66 about inaction by ICANN Org and the contracted parties in mitigating domain name system (DNS) abuse that escalates by the day. ICANN insisted that it expects registry operators to enforce their agreements with registrars prohibiting DNS abuse, but current contractual language does not enable it to “enforce this expectation.”

By the meeting’s end, ICANN Compliance had agreed to facilitate dialogue between the BC and registries/registrars about possible contractual amendments or other mechanisms that would better enable the contracted parties and ICANN to go after the chronic bad actors, estimated to be between fifteen and twenty.

Also related to DNS Abuse, members of the Commercial Stakeholders Group (CSG) pressed ICANN to resume implementation of the policy outcomes of the Working Group for Privacy and Proxy Services Accreditation Issues (PPSAI). ICANN suspended this work on grounds that it needed to determine how the Expedited Policy Development Process (EPDP) relating to publication of DNS registration data  would affect the PPSAI’s previous work. In the meantime, as several CSG members noted, bad actors have been abusing proxy services offered by registrars, which originally were designed to protect the privacy of legitimate domain name users.

Finally, the ICANN community had many questions for members of the ICANN Board about their role in vetting the Public Interest Registry’s (PIR) sale to private equity firm Ethos Capital. The $1.135 billion deal would put a for-profit company in charge of a domain (.org) that generally has been assigned to non-profit entities.

USCIB and Business Fights Poverty Host Virtual Session on COVID-19 Business Impact

How can business best deal with the COVID-19 challenge? In an effort to answer this critical question, USCIB partnered with Business Fights Poverty (BFP) to host an online “challenge” discussion on March 19. USCIB Vice President for Innovation and Product Policy Mike Michener was on the panel, joined by USCIB policy staff and representatives of the International Chamber of Commerce (ICC), the International Organization of Employers (IOE) and Business at OECD.

The USCIB Foundation’s Business Partners for Sustainable Development (BPSD) initiative Executive Director Dr. Scott Ratzan joined BFP’s Co-founder and CEO Zahid Torres-Rahman and Harvard Kennedy School’s Myriam Sidibe for the online discussion, supported by a panel of leading executives from business, civil society, the United Nations and the UK government. The discussion began with an evaluation of the current situation, and the impact on business and others. This was followed by dialogue on the immediate priorities for business, including best practices.  The panel ended by weighing how business can partner with others to support immediate action, and well as longer-term resilience.

Michener said, “We are all in this together, and partnerships are key to solving all of the problems posed by this crisis – health, economic, and protecting the most vulnerable. I appreciated the opportunity to engage in the valuable BFP discussion, and I look forward to continuing the conversation.”

The USCIB Foundation’s program, Business Partnership for Sustainable Development, with Business Fights Poverty.

USCIB Comments on Draft Vertical Merger Guidelines

USCIB submitted comments recently on the Draft Vertical Merger Guidelines announced in January by the U.S. Federal Trade Commission (FTC) and the U.S. Department of Justice (DOJ).

In the submission, USCIB indicated that members understand the tremendous procompetitive benefits and efficiencies that can be associated with vertical mergers.

“Our members value transparency and predictability in vertical merger enforcement policy and welcome the agencies’ joint effort to clarify the analytic framework and methods they employ to review vertical mergers,” said USCIB Senior Director for Investment, Trade and Financial Services Eva Hampl. “USCIB applauds the agencies for proposing draft vertical merger guidelines based on the well-established economics of vertical relationships and grounded in the consumer welfare standard.”

The comments are intended to support final guidelines that foster transparency and eliminate unnecessary regulatory obstacles to efficient vertical transactions.

USCIB member Lisa Kimmel, Ph.D., senior counsel, Crowell & Moring LLP, was also invited to participate in one of the public workshops announced by the agencies in February. Unfortunately, those workshops which were scheduled to take place this month, were cancelled due to COVID-19 related measures.