Update from the Field: Hunting for “Landing Zones” at Climate Change Conference in Poland

Norine Kennedy at COP24
COP24 is to finalize a so-called Paris Rulebook, which will provide implementation guidance on how countries put the Paris Agreement into action.
Crucial to business will be outcomes on carbon markets.

 

The 24th UN Framework Convention on Climate Change Conference of the Parties (UNFCCC COP24) began on Sunday, December 2 and will run through December 14 under the Presidency of Poland, in Katowice, Poland.  On Saturday night, the negotiating groups delivered a first round of outcomes to be taken up by the Ministers arriving for the 2nd week.  Many key business issues remain incomplete or “in brackets” in the current draft “Paris Rulebook,” intended to guide putting the Paris Agreement into action.  For the week ahead, high level government representatives will be seeking “landing zones” to resolve remaining substantial divisions.

Over 30,000 are in attendance here, including USCIB members Arkema, Chevron, Mars, Novozymes and Salesforce, joining USCIB staff Norine Kennedy and Mia Lauter in tracking the complex discussions, meeting with U.S. and other government delegations and partnering with key business groups.  Here in Katowice, the International Chamber of Commerce (ICC) serves as focal point for business, convening daily meetings to share intelligence and organizing the UNFCCC Business Day on December 6.

Sticking topics have included provision of how to treat compensation for loss and damage, financial support to developing countries for greenhouse gas reductions and technology cooperation, the design of elements relating to carbon markets and different rules and practices that would apply to developing and developed countries. Delegates are talking about the IPCC1.5 Special Report, worrying increases in greenhouse gas emissions and tensions in France sparked by the proposed fuel tax, since rescinded by the Government of France.

COP24 is to finalize a so-called Paris Rulebook, which will provide implementation guidance on how countries put the Paris Agreement into action.

“So far, negotiations have proceeded predictably, albeit too slowly to conclude in time,” observed Kennedy, who leads USCIB policy work on the environment and climate change. “The complexity of technical and political issues obscures the real challenge: mobilizing private sector investment and innovation at a pace and scale that would advance the UNFCCC and Paris objectives.”

According to Kennedy, the general feeling among delegates is that a fair amount of political will, particularly among high-level representatives and Ministers of Environment, will be required in order to successfully conclude.

“There is no one issue that is dominating conversations,” added Kennedy. “Rather, the sheer number of issues to be negotiated and the level of technicality those issues present is daunting for Parties to manage (or business representatives to track).”

The smaller than usual U.S. delegation here is led by Trigg Talley, and includes other State Department, Energy and EPA representatives.  Next week, Assistant Secretary of State Judy Garber and Wells Griffith (White House) arrive for the high-level portion of the negotiations.

Crucial to business will be outcomes on carbon markets. Countries seem to be falling into one of two camps:

  • The view of the U.S. is that any exchange – known as an ITMO (internationally transferred mitigation outcome) – should remain between the countries undertaking the transaction, and that both countries would agree their accounting and other arrangements accordingly.
  • Other parties take the view that ITMO approval should come through a centralized UNFCCC body, and that some share of the transactions (“a share of the proceeds”) should be allocated to a central fund or other UNFCCC-determined purpose.

Also crucial to business will be the potential adoption of the Silesian Declaration on Just Transition proposed by the Polish Presidency. Many parties support the Declaration, but others feel that they haven’t had enough time to examine the proposal.

“We are flagging the number of climate topics that are spilling into other forums and key issues, such as human rights and trade,” said Kennedy. “Following discussions with the U.S. Delegation here, USCIB has asked the State Department to stand firm against any intention to use participation in the Paris Agreement as a litmus test for trade policies among nations.”

Kennedy also observed that protesters and some social media accounts continue to complain about the presence of business at COP24, asserting that their involvement here constitutes a “conflict of interest” and interferes with the ability of governments to reach an ambitious agreement.  In the week ahead, USCIB members and staff will continue to express U.S. business priorities, working closely with the Administration to promote energy innovation and advance substantive business engagement.

USCIB Welcomes Signing of US-Mexico-Canada Agreement

Washington, D.C., November 30, 2018 – The United States Council for International Business (USCIB), which represents America’s most successful global companies, issued the following statement on the Trump administration’s signing of the United States-Mexico-Canada Agreement (USMCA), the update to the North American Free Trade Agreement (NAFTA):

“USCIB welcomes the signing of the USMCA, which was successfully concluded last month. The agreement contains several provisions important to our members, recognizing the many changes in the North American and global economies since the original NAFTA was signed a quarter-century ago. Modernized provisions including those on digital trade and customs are key to allowing U.S. companies to continue to thrive in the North American market.

“We commend the parties for recognizing the importance of keeping the region economically integrated, allowing North American companies to remain competitive in the global market.

“Cross-border investment is a key driver for economic growth and development for our members. We are therefore concerned that the USMCA includes provisions that will reduce investment protection in some areas. In addition, we note other changes in areas such as government procurement and de minimis that fall short in providing U.S. business the best framework for growth.

“USCIB members look forward to implementation of the agreement in a manner that addresses our key concerns and priorities in lowering barriers to cross-border trade and investment. We continue to support a seamless transition to the new agreement, allowing the existing supply chains to remain intact.”

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, the International Organization of Employers and Business at OECD, USCIB provides business views to policy makers and regulatory authorities worldwide, and works to facilitate international trade and investment. More at www.uscib.org.

Contact:
Jonathan Huneke, USCIB
+1 212.703.5043, jhuneke@uscib.org

Annual APEC Summit Fails to Reach Consensus

The Asia Pacific Economic Cooperation (APEC) Leadership Summit held its annual summit this year in Papua New Guinea (PNG) November 12-18, but for the first time in the Forum’s history, economies attending failed to reach consensus. The area of contention was around the Multilateral Trade System (MTS) section. This was also the first year that USCIB did not send a delegation to the APEC Summit, however USCIB contributed to earlier meetings this year, including the APEC meetings in Chile held September 11-12, which produced new principles in transit.

“This is clearly a disappointing outcome,” said USCIB Vice President for Product Policy and Innovation Mike Michener, who coordinates USCIB’s work on APEC. “APEC’s strength is the ability of member economies to find consensus on topics of mutual benefit, like trade. It is apparent that differing visions of trade policy blocked agreement for the first time in nearly 30 years.”

Following the summit, PNG released Statements to highlight what has been accomplished this year, including a reaffirmation of APEC’s commitment to achieve balanced, inclusive, sustainable, innovative and secure economic growth and prosperity in the APEC region, while pledging to combat protectionism and unfair trade practices. The Statements also emphasized the need to reform the World Trade Organization (WTO) in order to improve and strengthen the body to better address existing and emerging global trade challenges.

Furthermore, the Statement noted continuing support for the Work Program on E-commerce to advance initiatives on e-commerce, investment, small and medium enterprises, and trade and women’s economic empowerment.

For the 2018 APEC year, PNG chose the theme of “Harnessing Inclusive Opportunities, Embracing the Digital Future.” APEC will be led by Chile in 2019 and will focus on the digital economy, regional connectivity, and women’s role in economic growth. Chile previously hosted APEC in 2004.

G20 Highlights 2019 Priority Issues in Leaders Declaration

As Japan prepares to assume the role of host of the G20/B20 in 2019, G20 leaders issued a Declaration on December 1, outlining items needed to build consensus for fair and sustainable development.

According to USCIB Vice President for ICT Policy Barbara Wanner, there is noteworthy focus in the Declaration on the digital economy.Of the 31 points, at least three of the top ten focus on the opportunities and challenges of digital transformation,” noted Wanner. “Points 6-7 focus primarily on potential job displacement and the need for reskilling and vocational training while point 9 draws upon the work of the G20 Digital Task Force. This underscores the importance of bridging the gender digital divide, securing the use of ICTs, and ensuring the free flow of information, ideas, and knowledge ‘while respecting applicable legal frameworks and working to build consumer trust, privacy, data protection, and intellectual property rights protections.’” Point 9 of the Declaration also calls for the establishment of a G20 Repository of Digital Policies to share and promote adoption of innovative digital economy business models.

Beyond the digital economy, G20 leaders pointed out other critical areas of work, such as international trade and investment, which serve as engines of growth, productivity, innovation, job creation and development. However, the group added that the multilateral trading system has fallen short on some objectives and voiced continued support for the necessary reform of the World Trade Organization (WTO) to improve its functioning. The Group also reaffirmed its commitment towards preventing and fighting corruption.

On sustainable development, leaders emphasized commitment to leading the transformation towards sustainable development and support for the United Nations 2030 Development Agenda as the framework for advancing the G20 Action Plan. Regarding the role of energy, the G20 leaders recognize the opportunities for innovation, growth, and job creation, while acknowledging the role of all energy sources and technologies in the energy mix and different national paths to achieve cleaner energy systems.

The G20 focused this year on infrastructure for development, the future of work, and a sustainable food future and a gender mainstreaming strategy across the G20 agenda.

OECD Emphasizes Adverse Impact of US-China Trade Tensions on Economy

The OECD’s semi-annual Economic Outlook, issued on November 21, warns that U.S.-China trade tensions are adversely affecting the global economic outlook and that the majority of the burden will be felt by U.S. consumers.  And if the U.S.-China trade disputes continue to escalate, world trade could reduce significantly by 2021.  In his remarks presenting the latest Economic Outlook, OECD Secretary General Angel Gurria highlighted downward adjustments in OECD’s forecasts for GDP growth rates from their May Outlook: dropping from 3.7% to 3.5% growth globally for 2019, with an additional 3.5% drop in 2020.

For the U.S. specifically, the OECD forecast for 2019 growth drops from 2.9% in May to 2.7% in this report and a further drop to 2.1% in 2020. For Europe’s “Euro Area”, the OECD now estimates 1.6% (down from 1.8% in the May Outlook) and 1.6% growth again in 2020. For China, the OECD is now forecasting 6.32% annual growth in 2019 (down from 6.6% in the May forecast) and 6.3% growth again in 2020.  The slides from the OECD presentation demonstrate in more detail key trends the OECD identifies over the coming years.

Gurria highlighted one major reason for this decline in global growth prospects is a breakdown in international cooperation. The imposition of new tariffs and uncertainty about further restrictive trade actions are contributing to a marked slowdown in trade growth, dampening global investment and threatening jobs and living standards. The international rules-based system that has governed trade since the end of the Second World War has been undermined. Gurria’s perspective is blunt – “Protectionism is not the answer.” While Gurria does not explicitly call out U.S. trade policies, it seems clear that the U.S.-China trades disputes and U.S. more aggressive unilateral trade policy are significant factors helping drive down global economic forecasts.

USCIB President and CEO Peter Robinson took note of the OECD’s semi-annual Economic Outlook. “The OECD has earned international respect for its detailed and apolitical economic outlooks,” said Robinson.  “All of us – governments, businesses and citizens – need to take heed to this OECD alarm bell.  Economic growth is the force that drives investment, trade, jobs and better lives for citizens around the world.  It seems clear that one key concerns causing the OECD and other experts to adjust their economic forecasts downward is increased protectionism.  I agree with Secretary General Gurria that protectionism is not a solution; protectionism begets protectionism and downward pressures.  We call upon the U.S. government, as well as other leading trade powers, to reject protectionism and provide global leadership to open trade and investment opportunities around the world.”

The OECD’s press release provides an excellent summary of their key analysis, findings and recommendations.

Assistant Policy and Program Manager – New York Office

PositionAssistant Policy and Program Manager – New York Office

Organization: United States Council for International Business

Reports to: Senior Vice President, Policy and Government Affairs

General Description: Supports the Vice President of Corporate Responsibility and Labor Affairs on a variety of projects involving the development and dissemination of USCIB policy positions, research papers and meeting preparation and materials. Also supports participation and representation of USCIB at key United Nations meetings, including the UN SDGs High Level Political Forum and the UN General Assembly. Supports USCIB member engagement and development.

Qualifications: Bachelor’s degree is required, as well as excellent oral and written communication skills in English. Masters Degree or equivalent experience a plus. Must be proficient in Microsoft Office, WordPress, content management systems and other computer and web-based programs, including diverse forms of social media.  Must be detail-oriented and have strong client-oriented interpersonal, administrative and organization skills.  Interest in international business policy issues or international relations a plus.

Responsibilities:

  • Maintain substantive knowledge of key labor, corporate responsibility, business & human rights, sustainability and/or corporate governance issue areas at intergovernmental and national levels globally; Identify, track and summarize key issues and disseminate updates to members.
  • Build dialogue and mutually beneficial relationships with key stakeholders on the priority issue areas noted above, including with representatives of IOE, BIAC, ICC and their national employer organization members.
  • Participate in internal USCIB planning meetings. Coordinate development of agendas for and participate in Corporate Responsibility and Labor Affairs Committee (CR/LA Committee) and Corporate Governance Committee (CG Committee) in-person meetings, committee webinars and conference calls. Participate in the CR/LA & CG Committee annual planning and strategic review meetings. Maintain CR/LA & CG Committee activity, progress and benchmarking tools.
  • Attend meetings and events relevant to CR/LA & CG policy committees and engagement strategy around NYC, Washington, DC and internationally, as needed; be able to represent USCIB positions; provide notes to staff and members.
  • Participate in USCIB UN Sustainable Development Goals Working Group activities, follow and report on UN SDGs developments, and, as necessary, support development of the Business for 2030 website.
  • Draft, proofread and edit various products including policy statements, press releases, blogs, letters, committee newsletters, presentations, final papers and formal comments/responses to U.S. government or multilateral institution invitations for comments on policy documents. Develop content updates for relevant portions of the USCIB website, including the CR/LA & CG Committee sections.
  • Make contacts with members and potential members as necessary; provide assistance to membership department in recruiting and provision of member information. and taking minutes and providing summaries of meetings.

 

Submit resume and cover note to resume@uscib.org no later than December 10, 2018.

Policy and Program Assistant – New York Office

PositionPolicy and Program Assistant – New York Office

Organization: United States Council for International Business

Reports to: Senior Vice President, Policy and Government Affairs

General Description: Provide program and administrative assistance to both the Vice President of Corporate Responsibility and Labor Affairs and the General Counsel on a variety of USCIB policy and program related activities. Also supports participation of USCIB at key United Nations meetings, including the UN SDGs High Level Political Forum and the UN General Assembly. Supports membership and policy staff with membership engagement and development.

Qualifications: Bachelor’s degree or equivalent experience is required, as well as excellent oral and written communication skills in English. Must be proficient in Microsoft Office, WordPress, content management systems and other computer and web-based programs, including diverse forms of social media.  Must be detail-oriented and have strong client-oriented interpersonal, administrative and organization skills.  Interest in international business policy issues or international relations a plus.

Responsibilities:

  • Provide support for the Corporate Responsibility and Labor Affairs Committee and the Corporate Governance Committee. Duties will include: preparation of materials for policy committee meetings (e.g., agendas, handouts, letters, forms, reports, participants lists, badges, etc.) and webinars; preparation, organization, and e-mail distribution of meeting notices/materials to committee members and coordination of e-mail responses of same; setting up teleconference calls; assisting with logistical support of meetings, including registration and coffee/food service for participants in-house, and taking minutes and providing summaries of meetings.
  • Provide support for the Arbitration Committee. Duties will include: preparation of materials for committee meetings (e.g., agendas, handouts, letters, forms, reports, participants lists, badges, etc.) and webinars;  preparation, organization, and e-mail distribution of meeting notices/materials to committee members and coordination of e-mail responses of same; setting up teleconference calls; assisting with logistical support of meetings, including registration and coffee/food service for participants in-house, and taking minutes and providing summaries of meetings.
  • Maintain knowledge of issue areas to be used in liaising with members, providing written and presentation materials, and participating in internal strategy planning sessions.
  • Manage ongoing responsibilities including drafting, proofreading and editing materials (e.g. outgoing e-mails, letters, newsletters, presentations, and other materials); arrange and attend staff meetings. Assist with management of documents and communications with USCIB international affiliates and international organizations.
  • Support and attend, where needed, meetings and events relevant to policy committees and engagement strategy around NYC and Washington, DC; provide meeting notes to staff and members. Make contacts with members and potential members as necessary; provide assistance to membership department in recruiting and provision of member information.
  • Provide assistance with USCIB Arbitrator/Mediator/Expert Database and maintain records of Arbitration Committee, including appointments, terms and nominations.
  • Support maintenance of relevant portions of the USCIB website as needed, particularly the Corporate Responsibility and Labor Affairs Committee, the Corporate Governance and Arbitration Committee profiles. Manage event registrations and collection and integration of comments on policy statements and final papers, as needed.
  • General and specific conference and event planning, including handling conference registration forms and processing fees; creation and production of materials for distribution, with a possibility for more extensive involvement in event logistics and organization.
  • Provide basic office and administrative support including sorting and distributing incoming/outgoing mail; answering telephones and taking messages; photocopying documents; maintaining electronic filing system; assisting in mass mailings when needed; maintaining supplies and cleanliness of office; managing and coordinating calendars; performing other duties as assigned, including filling in for other assistants as required.
  • Enter and update committee member information in CRM software as necessary, with ability to run up-to-date reports, rosters, and distribution lists for numerous active committees, as well as perform routine searches.
  • Support policy managers in planning and making travel arrangements.

 

Submit resume and cover note to resume@uscib.org no later than December 7,  2018.

Policy and Program Assistant – Washington, DC Office

PositionPolicy and Program Assistant – Washington, DC Office

Organization: United States Council for International Business

Reports to: Senior Vice President, Policy and Government Affairs

General Description: Provide program and administrative assistance to both the Vice President Product Policy and Innovation and the Director, Customs and Trade Facilitation on a variety of USCIB policy and program related activities. Supports membership and policy staff with membership engagement and development.

Qualifications: Bachelor’s degree or equivalent experience is required, as well as excellent oral and written communication skills in English. Must be proficient in Microsoft Office, WordPress, content management systems and other computer and web-based programs, including diverse forms of social media.  Must be detail-oriented and have strong client-oriented interpersonal, administrative and organization skills.  Interest in international business policy issues or international relations a plus.

Responsibilities:

  • Provide support for the Health, Food and Ag, Intellectual Property, APEC and Product Policy Committees. Duties will include: preparation of materials for policy committee meetings (e.g., agendas, handouts, letters, forms, reports, participants lists, badges, etc.) and webinars; preparation, organization, and e-mail distribution of meeting notices/materials to committee members and coordination of e-mail responses of same; setting up teleconference calls; assisting with logistical support of meetings, including registration and coffee/food service for participants in-house, and taking minutes and providing summaries of meetings.
  • Provide support for the Customs and Trade Facilitation and Anti-Illicit Trade Committees. Duties will include: preparation of materials for committee meetings (e.g., agendas, handouts, letters, forms, reports, participants lists, badges, etc.) and webinars;  preparation, organization, and e-mail distribution of meeting notices/materials to committee members and coordination of e-mail responses of same; setting up teleconference calls; assisting with logistical support of meetings, including registration and coffee/food service for participants in-house, and taking minutes and providing summaries of meetings.
  • Maintain knowledge of issue areas to be used in liaising with members, providing written and presentation materials, and participating in internal strategy planning sessions.
  • Manage ongoing responsibilities including drafting, proofreading and editing materials (e.g. outgoing e-mails, letters, newsletters, presentations, and other materials); arrange and attend staff meetings. Assist with management of documents and communications with USCIB international affiliates and international organizations.
  • Support and attend, where needed, meetings and events relevant to policy committees and engagement strategy around NYC and Washington, DC; provide meeting notes to staff and members. Make contacts with members and potential members as necessary; provide assistance to membership department in recruiting and provision of member information.
  • Support maintenance of relevant portions of the USCIB website as needed. Manage event registrations and collection and integration of comments on policy statements and final papers, as needed.
  • General and specific conference and event planning, including handling conference registration forms and processing fees; creation and production of materials for distribution, with a possibility for more extensive involvement in event logistics and organization.
  • Provide basic office and administrative support including sorting and distributing incoming/outgoing mail; answering telephones and taking messages; photocopying documents; maintaining electronic filing system; assisting in mass mailings when needed; maintaining supplies and cleanliness of office; managing and coordinating calendars; performing other duties as assigned, including filling in for other assistants as required.
  • Enter and update committee member information in CRM software as necessary, with ability to run up-to-date reports, rosters, and distribution lists for numerous active committees, as well as perform routine searches.
  • Support policy managers in planning and making travel arrangements.

 

Submit resume and cover note to resume@uscib.org no later than December 7, 2018.

WATAC Raises Awareness About Carnets Among Indian Exports and Customs

USCIB Senior Vice President and CFO Declan Daly, who oversees USCIB’s ATA Carnet department, attended the meetings.
WATAC discussed and reviewed the operation and administration of the ATA Carnet System in member countries with the aim of spreading awareness about ATA Carnet among Indian exports and Indian customs.

 

Meetings of the World ATA Carnet Council (WATAC), were held in Jaipur, India on November 15-16 at Hotel Jai Mahal Palace and SMS Convention Centre respectively. USCIB Senior Vice President and CFO Declan Daly, who oversees USCIB’s ATA Carnet department, attended the meetings. WATAC discussed and reviewed the operation and administration of the ATA Carnet System in member countries with the aim of spreading awareness about ATA Carnet among Indian exports and Indian customs.

“Being that this was my first WATAC meeting, it was a great opportunity to meet member colleagues from all around the world,” said Daly.

The meeting was jointly organized by WATAC, which is part of the International Chamber of Commerce, and the Federation of Indian Chambers of Commerce and Industry under the aegis of the Central Board of Indirect Taxes and Customs (CBIC), which is part of India’s ministry of finance.

The ATA Carnet is the global gold standard for temporary admissions under the auspices of the World Customs Organization. ATA Carnets are international tools of trade facilitation, which serve as a temporary export-import documentation. The ATA System is in place in 87 countries and territories, and provides duty-free and tax-free imports on goods that will be re-exported within 12 months.

Mixed Messages at Recent Meetings on Global ICT Policy

Barbara Wanner, was present at both events, alongside USCIB members, joining global business colleagues under the aegis of ICC-BASIS at the IGF and as part of the Business at OECD (BIAC) delegation to CDEP.
The two meetings could not have provided more different messages about the challenges and opportunities of digital transformation of the economy and how to address them.

 

The 13th Internet Governance Forum (IGF) and meetings of the OECD Committee on Digital Economy Policy (CDEP) and its Working Parties met in Paris, France the week of November 12. According to Barbara Wanner, who leads USCIB’s work on ICT policy, the two meetings could not have provided more different messages about the challenges and opportunities of digital transformation of the economy and how to address them.

French President Emmanuel Macron, who opened the three-day IGF on November 12 at UNESCO, depicted a digital economy fraught with danger from cyber-attacks, the proliferation of hate speech, and anti-democratic forces requiring development of a “better model” featuring regulation of the Internet and its actors. The OECD CDEP, in contrast, proceeded in a workman-like, measured manner to move its Going Digital Project toward completion as well as advance work on Artificial Intelligence (AI). Going Digital (GD) is an ambitious horizontal endeavor involving 14 OECD committees that takes a largely evidence-based and holistic approach to considering both the economic and societal benefits and the challenges of the evolving digital ecosystem.

Wanner, was present at both events, alongside USCIB members, joining global business colleagues under the aegis of ICC-BASIS at the IGF and as part of the Business at OECD (BIAC) delegation to CDEP.

“Our messages, as IGF workshop speakers and BIAC interveners, generally emphasized the commercial and developmental benefits that can be realized through the creation of a pro-innovation policy environment, the effectiveness of business-informed, risk-based approaches to privacy and security, and the importance of the multistakeholder model in considering the complexity of digital economy issues,” noted Wanner.

According to Wanner, by the week’s close, members agreed that the “watershed” moment at the IGF created by President Macron’s remarks will require further internal discussion about what business wants and needs from the IGF and strategies to tackle likely new challenges at the United Nation’s General Assembly and other multilateral organizations. Concerning CDEP’s leadership of the Going Digital Project, members generally were encouraged that the final product – to be issued at a special forum on March 11-12, 2019 – would reflect business inputs and provide a practical guide to tap the potential of digital transformation.