USCIB Urges Treasury to Work With OECD on Digital Taxation

In response to the continuing and extensive digitalization of the economy and increasing calls by countries to tax the income of technology companies that earn revenue in a market without necessarily having a traditional physical presence in that market, USCIB sent a letter on October 4 to Secretary of the Treasury Steven T. Mnuchin. The letter urges Secretary Mnuchin to continue to work with the OECD and other countries to achieve the best outcome for U.S. taxpayers, the U.S. Treasury, and the U.S. economy.

“USCIB believes that any fundamental changes to the international tax rules should be achieved through a consensus-based process,” said USCIB Vice President for Taxation Policy Carol Doran Klein.

According to USCIB’s letter, the best place to conduct a consensus-based process is at the OECD where over 130 countries are participating in a project to attempt to achieve consensus on possible new rules applicable to the broad digitalized economy. The United States Treasury has, to date, been an active participant in this project, including serving as vice-chair of the steering group.

USCIB Meets With DOJ on Global Competition Issues

L-R: Mike Murray, Deputy Assistant Attorney General; James Fredricks, Section Chief, Criminal Section II, U.S. Department of Justice; Dina Kallay, Ericsson and USCIB Competition Committee Chair; Eva Hampl, USCIB Senior Director, Investment, Trade and Financial Services; and Jennifer Patterson, Arnold & Porter and USCIB Competition Committee Vice-Chair.

Department of Justice (DOJ) Deputy Assistant Attorney General for Appellate Mike Murray met with USCIB’s Competition Committee, chaired by Dina Kallay (Ericsson), during its fall meeting on September 25 at the offices of White & Case LLP.  Following an introduction and welcome by Vice Chair Jennifer Patterson (Arnold & Porter LLP), USCIB members participated in an active agenda that included updates on important developments on global competition issues.

Murray discussed the issue of indirect purchasers DOJ Antitrust Division brief and position in Apple v. Pepper. His complete remarks can be found here. DOJ Section Chief Jim Fredericks, Criminal Section II then presented and answered member questions regarding the DOJ Antitrust Division new policy to incentivize compliance programs.

Members also received an update from Bryan Gant from White & Case on the status of the amicus brief USCIB filed in the 1-800 Contacts case, which urges reversal of the FTC ruling on antitrust liability for trademark settlements. Finally, John Taladay (Baker Botts), Chair of the Business at OECD Competition Committee, provided an overview of the upcoming OECD Competition Week taking place December 2-6 in Paris. The latter part of that week will be the Global Forum on Competition, covering issues such as competition provisions in regional trade agreements and merger control in dynamic markets.

USCIB Continues to Support Comprehensive Trade Deal with Japan

Using a transparent effect.

Washington, D.C., September 25, 2019 – Following the announcement of a partial trade deal between the United States and Japan today on the sidelines of the UN General Assembly in New York, the United States Council for International Business (USCIB), which represents America’s most successful global companies, welcomed the conclusion of the deal with Japan addressing some key trade concerns, but looks forward to continued negotiations of a comprehensive agreement to benefit American businesses in all sectors.

“This partial deal is an important first step in opening the market with the fourth largest trading partner of the United States,” said USCIB President and CEO Peter Robinson. “However, several other sectors that also have trade concerns are not covered by this agreement, so we urge the Administration to continue negotiations to create vital opportunities for U.S. companies exporting to and investing in Japan.”

USCIB continues to support a comprehensive trade deal including important provisions on broad market access, intellectual property protections, investment, customs and trade facilitation, financial services, and dispute settlement. These provisions, providing broad access and protections, are key to ensuring the economic success of American companies in the global market place.

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, generating $5 trillion in annual revenues and employing over 11 million people worldwide. As the U.S. affiliate of the International Chamber of Commerce (ICC), the International Organization of Employers, and Business at OECD (known as BIAC), USCIB helps to provide business views to policy makers and regulatory authorities worldwide, and works to facilitate international trade and investment. More information is available at www.uscib.org.

Contact:
Kira Yevtukhova, USCIB
+1 202.617.3160, kyevtukhova@uscib.org

USCIB Discusses International Environmental Policy With EPA Administrator 

L-R: USCIB VP Norine Kennedy, U.S. EPA Administrator Andrew R. Wheeler, USCIB President and CEO Peter Robinson

As the 74th United Nations General Assembly High Level Session got underway, USCIB members met with the U.S. Environment Protection Agency (EPA) Administrator Andrew R. Wheeler to discuss advancing U.S. business innovation and investment towards transboundary environmental challenges.

The meeting was a unique opportunity for USCIB members to engage with the Administrator on U.S. business priorities for international environmental engagement and public private partnerships while advancing economic prosperity and environmental stewardship at home and abroad.

“We needy enabling conditions for dialogue and partnership with the private sector in the multilateral system,” stressed USCIB President and CEO Peter Robinson during his welcoming remarks. “Therefore, we do need to remove barriers to some business sectors in some parts of UN system – USCIB is working on this, and we would welcome EPA’s support in this area too,” he added.

Wheeler’s remarks focused on current environmental priorities for the EPA, such as the global water crisis, which he noted must be tackled through improving access to safe drinking water, strengthening infrastructure and preventing plastic debris from reaching oceans. Wheeler also emphasized global challenges and EPA involvement to tackle food waste.

“USCIB members had an opportunity to share perspectives on the kinds of partnerships that business and EPA can collaborate on to find solutions to global challenges, in addition to discussing the necessary infrastructure investments that are needed,” said USCIB Vice President for Strategic International Engagement, Energy and Environment Norine Kennedy.

USCIB Releases Statement on China’s WTO Commitments, Urges Bilateral and Plurilateral Dialogue

In response to an annual request by the United States Trade Representative for comments on China’s compliance with WTO commitments and notice of public hearing, USCIB gathered member input and submitted a comprehensive statement on September 18.

The statement emphasizes the direct and important stake American business holds in the relationship between the U.S. and China and in its success. As the world’s largest economy, China’s practices and policies have a significant impact on its trading partners, and engagement with China can be challenging. China’s growing importance in the global economy provides strong incentives for both countries to work together to address common challenges and responsibilities.

USCIB members continue to have serious concerns with several policies and practices maintained by China that undermine the ability of U.S. businesses to operate, including unfair and discriminatory governmental practices. Furthermore, U.S. tariffs and Chinese retaliatory tariffs imposed as a result of the U.S. Section 301 investigation into China’s forced technology transfer, intellectual property, and innovation policies have been disruptive to U.S. business.

“The tariff actions have not resolved the underlying issues identified by the U.S. or have changed Chinese behavior regarding the matters covered by the investigation or the broader issues identified in this submission,” said Senior Director for Investment, Trade and Financial Services Eva Hampl.

Accordingly, the USCIB submission urged high-level bilateral dialogue between the U.S. and China. USCIB also urged both countries to utilize, in addition to the WTO, the full range of formal multilateral fora, including Asia-Pacific Economic Cooperation (APEC) Forum and the Organization for Economic Co-operation and Development (OECD), to work toward improved commercial relations. Plurilateral dialogues that include U.S.-friendly jurisdictions such as the European Union, Canada or Australia should also be considered.

“This annual submission provides a valuable opportunity to stakeholders to share issues that business is facing in China, following their accession 18 years ago in 2001,” said Hampl. Many sectors continue to face significant issues related to market access, transparency, regulation and protection of intellectual property rights. In addition to addressing many cross-sectoral and sector specific issues, this submission takes the opportunity to address the ongoing tariff war with China and the damaging effect that is having on companies.

“USCIB has been consistently pushing back against this tariff escalation, the start of which alleged to address some of the issues highlighted in our broader China WTO submission,” added Hampl. “Our submission clearly shows that the issues related to IP theft and forced tech transfer continue to be a problem for companies doing business in China.”

Pledge to America’s Workers: Spotlight on Walmart

Source: Walmart

The U.S. Department of Labor has recently announced the 5th annual National Apprenticeship Week, which will take place November 11-17, to showcase the positive impact apprenticeship programs have on addressing the U.S. skills gap and preparing the American workforce for the jobs of today and tomorrow.  In celebration of this, USCIB has been featuring case studies of members making an impact in the re-skilling and re-training the workforce as part of the White House Pledge to America’s Workers.

This week, we’re featuring Walmart, which is empowering its employees with the skills, confidence and the technology they need to serve customers and their own careers—whether they choose to stay in retail or take their skills to a different field.

Walmart is accomplishing this, in part, through the Walmart Academy training program, which has completed more than 800,000 trainings since the academy opened in 2016. When signing the pledge Walmart stated that their commitment would be partly determined by completion of its internal training programs, including the Academy program, which provides focused training for their associates, both hourly and salaried, through classroom and on-the-sales-floor exercises and tailored integration of technology. Walmart provides instructor-led training, web-based training and virtual reality training.

Last year, Walmart introduced Virtual Reality (VR) to the world of employee training and development by using the technology to upgrade training at Walmart Academies nationwide. With the huge success of that program, the company is now providing Oculus VR headsets to all stores in the U.S. to bring the same level of training to its more than 1 million Walmart associates.

Additionally, Walmart launched the Live Better U program, which provides access to debt-free, in-demand college degree and professional certification programs from nonprofit universities in the fields of technology, business, and supply chain management. Associates can earn college credit for training they receive on the job through our Academies. The Live Better U program also provides high school completion at no charge and college prep courses that translate into credit towards a degree. Since the program launched last summer, more than 13,000 associates have been accepted into the program in all 50 states. Within the first year, students had earned more than 30,000 college credits valued at more than $17.5 million.

For more information on Walmart’s pledge, please read this piece written by Walmart’s Executive Vice President of People, Julie Murphy.

See here for other spotlights:

Salesforce, the global leader in Customer Relationship Management (CRM) focused on bringing companies closer to their customers in the digital age.

 

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US Business Priorities for UNGA High-Level Opening Week

Photo credit: United Nations

USCIB issued the following statement on September 18 for the 75th United Nations General Assembly High-Level opening week. The statement reflects U.S. business priorities.

On the occasion of the High Level Opening Week of the UN General Assembly on the urgent and intertwined topics of climate change and sustainable development, USCIB joins with many others in highlighting the critical importance of inclusive multilateralism as a means to increase pace and impact to meet climate, financing for development and Sustainable Development Goals (SDGs) commitments and objectives, involving all societal partners, including the private sector. In each of these three areas, economic policies that drive growth and job creation will be critical to generate the necessary resources and enable business to make its strongest contributions to implementation.

UN 2030 Agenda and Sustainable Development Goals (SDGs)

USCIB members have placed the SDGs and the UN 2030 Sustainable Development Agenda at the center of their sustainable development policies and actions.  As needed progress towards delivering the SDGs is lagging, we encourage governments to do likewise. We urge the United Nations to call for greater global action to achieve Agenda 2030, using the occasion of its 75th anniversary in 2020 to galvanize the international community and actively include business and other non-state actors.

Business for 2030 homepage logoScientific assessment, policy dialogue and assessment all need to integrate business expertise and views on a more systematic basis at international, national and local levels. The private sector brings important experience and knowledge to deliver the 2030 Agenda; it is in the DNA of business to turn challenges into opportunities and to innovate and develop practical and realistic solutions for the problems we face together.  Recent examples of this business commitment and action will be highlighted at the September 25 SDG Business Forum, organized by ICC with the UN GC, the International Organization of Employers and the UN, and can be found on USCIB’s Businessfor2030 web platform.

In addition, a renewed emphasis on public-private sector partnerships is required to crowd-in private sector solutions.   In our view, business is needed more than ever as a source of solutions, real world experience, innovative technology, financial resources and partnerships in the multilateral system.  The UNGA SDG Summit is an opportunity to move toward mainstreaming collaborative approaches among the UN, governments, civil society, and business throughout the implementation of the Agenda 2030.

Climate Change

On the occasion of the UN Climate Action Summit, USCIB recognizes that we must take urgent action to tackle climate change on all fronts.  According to the IPCC, reducing future climate-related risks will depend on the upscaling and acceleration of far-reaching climate mitigation and both incremental and transformation adaptation.  In this regard, business investment, innovation and action, working in partnership with governments, society and other stakeholders, will be vital.

We continue in our active support of the 2015 Paris Accord and the world business position presented at COP21.  We continue to call for the commitment of all governments to this global effort, so that business and government can work together to enact economically sound policies that:

  • Promote development, deployment and use of cleaner and more efficient technologies and energy sources
  • Enhance sustainable energy access and security in all countries
  • Utilize markets and market-based approaches to animate least-cost GHG reductions, working through multilateral trade
  • Drive investment in innovation for mitigation and adaption

We share the concern that there is a shortfall in hoped-for progress toward the Paris goals, and encourage renewed efforts to get back on track.  We welcome ambitious aspirations on the part of organizations and companies and look forward to bringing the best of business forward in addressing this critical global challenge, working closely with the UN Framework Convention on Climate Change en route to the 25th Conference of the Parties in Santiago, Chile.

Financing for Development

A major challenge faced in achieving the 2030 Agenda for Sustainable Development is lack of financial resources, from both public and private sources.  Domestic resource mobilization is one of the core pillars identified in the Addis Ababa Action Agenda to help close this gap, and the private sector is indispensable in this regard.  However, even with robust plans to incorporate financing for development, governments still need to do more to enhance enabling frameworks for investment and strengthen rule of law and institutions needed for inclusive economic prosperity.

At the UN High Level Meeting on Financing for Development, we encourage governments to redouble their efforts to protect human rights, tackle corruption wherever it is encountered in public or private sectors and pursue democratic and transparent processes whether via international cooperation or at home.

USCIB Informs UN High-Level Panel on Digital Cooperation

USCIB submitted a letter on the final report of the United Nations High-Level Panel on Digital Cooperation (HLPDC). The HLPDC was established by the UN Secretary-General in July 2018 to identify good examples and propose modalities for working cooperatively across sectors, disciplines and borders to address challenges in the digital age. USCIB had previously submitted two other sets of comments aiming to shape the substance of the final report.

The letter was sent to Fabrizio Hochschild, special adviser to the UN Secretary General on the preparations for the commemoration of the seventy-fifth anniversary of the UN and emphasized USCIB’s view that the global digital ecosystem benefits when government policymakers work in close cooperation with business and other stakeholders to develop and ensure that the legal, policy, and regulatory approaches adopted and implemented result in a holistic framework.

Additionally, USCIB provided comprehensive comments on the need to provide a business perspectives to help fine-tune the analysis, refine the proposed IGF Plus global digital cooperation architecture model, concerns about certain elements of the Recommendations and relevant work already underway in other intergovernmental organizations that should be leveraged.

“We are pleased that another pervasive theme recognizes the complexities of the emerging digital ecosystem and, in turn, underscores the importance of informing policy development through multistakeholder processes,” said Barbara Wanner, USCIB vice president for ICT policy. “In the coming months, we look forward to working with the HLPDC Secretariat to help host technical roundtables aimed at implementing the report recommendations.”

At ‘All In’ Event, Business Makes Case for Inclusive Multilateralism to Step Up SDG Action

Wade Warren, chief strategy officer, Deloitte gives opening remarks, alongside USCIB EVP for Strategy and Business Development Abby Shapiro

World leaders will gather for the 74th United Nations General Assembly (UNGA-74) in New York over the next two weeks to deliberate on the need to step up action on the UN 2030 Sustainable Development Agenda, Sustainable Development Goals (SDGs) and Climate Change. Many of these leaders from UN agencies, business and civil society, agree that not enough progress or scale has been achieved towards attaining SDG targets. Despite the private sector’s contribution on economic, environmental and social fronts towards delivering the SDGs, constraints to meaningful business engagement remain in some UN forums, hindering productive partnerships that could advance shared value and achieve common goals.

To highlight the importance of meaningful engagement by business in the UN system, USCIB, Deloitte and the International Organization of Employers (IOE) organized an ‘All In’ Conference on the importance of inclusive multilateralism and the role of business in achieving the SDGs. The conference was held at the  Millennium Hilton UN Plaza Hotel on September 11 and brought together over 70 representatives from UN Missions and agencies, U.S. government, civil society, NGO’s and the private sector to discuss ways to strengthen cooperation, share challenges and opportunities, and chart a course for a practical “2020 Action Plan for Inclusive Multilateralism and Business.”

Representative from Save the Children provides civil society perspective at ‘All In’ Conference

Throughout the day-long discussions, speakers and participants agreed that trust between governments, business and civil society has been strained yet remains a crucial foundation and success factor when building long-term, sustainable partnerships to address global challenges such as reskilling of workers, improving nutrition and eradicating poverty.

“If we were to achieve our aspirations, it would require all hands-on-deck, collective action and inclusive partnerships that mobilize resources and expertise,” said USCIB Executive Vice President, Strategy and Business Development Abby Shapiro. “Business can bring solutions, ability to scale and make much-needed investments in infrastructure. And we know that business can do well. We believe the SDGs present a unique prism to see what shared societal value means, especially in terms of social and environmental progress.”

Melissa Kopolow-McCall of AB InBev, a USCIB member, added a company perspective, “In some ways, our company is dependent on the SDGs to sustain its business model,” she said. “So partnerships are key – but it is not clear that all agree that partnerships are welcome or even a good thing. While some may believe that profit is incompatible with public good, we do not share that view.”

Participants also engaged in dialogue with Fabrizio Horchschild, special adviser to the UN Secretary General on preparations for the seventy-fifth United Nations anniversary, Austin Smith, acting U.S. representative to the UN Economic and Social Council (ECOSOC) and Robert Skinner, executive director of the UN Office for Partnerships.

USCIB Vice President, Strategic International Engagement, Energy and Environment Norine Kennedy moderated the day-long conference

USCIB Vice President for Environment, Energy and Strategic International Engagement Norine Kennedy presented USCIB’s two-year ‘All In’ initiative to focus on strengthening inclusive multilateralism through six elements comprising its Vision:

  1. Public-private partnerships for shared value
  2. Leverage public and private science & technology know-how
  3. Scale SDG solutions through supply and value chains
  4. Measure and monitor impact of SDG Action by Business
  5. Inclusive economic empowerment
  6. Investing in SDG infrastructure in all its forms

USCIB has convened meetings focusing on specific elements of the ‘All In Vision’ in Geneva in May, Bangkok in June and NYC in July and will consider how to continue the global conversation about institutional infrastructure and multi-stakeholder partnerships toward practical solutions that mobilize business, governments and the UN system.