Communication Department Archives

Hampl Voices China Concerns in Public Testimony

Published on October 9, 2018
USCIB Senior Director for Investment, Trade and Financial Services Eva Hampl provided testimony on October 3 to the interagency Trade Policy Staff Committee.
Hampl took the opportunity to speak about China 301 tariffs, noting how disruptive they are to U.S. business.

Following USCIB’s submission to the annual request by USTR for comments on China’s compliance with WTO commitments and notice of public hearing, USCIB Senior Director for Investment, Trade and Financial Services Eva Hampl provided testimony on October 3 to the interagency Trade Policy Staff Committee (TPSC).

The interagency panel was chaired by USTR and included officials from the Departments of Commerce, Treasury, State, Agriculture and Labor. The questions from the panel addressed the cybersecurity law, addressing ICT products and services as well as data flow restrictions, state-owned enterprises (SOEs), anti-monopoly law (AML) enforcement, trade secrets, agricultural biotechnology, and the import ban on recyclable materials.

“USCIB has consistently identified a number of key areas of concern, including market access, standards, transparency, subsidies, competition policy, technology transfer, and national and economic security issues,” noted Hampl during her testimony. “While small steps are occasionally made in a market opening direction, overall China appears to be ramping up its protectionism. These issues affect many U.S. sectors, including agricultural biotechnology, audiovisual, chemicals, electronic payment services, express delivery services, recoverable materials, software, and telecommunications.”

Hampl also took the opportunity to speak about the China 301 tariffs noting how disruptive they are to U.S. business. “Extensive tariff actions do not show any indication that they will in fact resolve the underlying issues and change China’s behavior regarding intellectual property theft and forced technology transfer,” warned Hampl. “In addition, as our submission lays out, there are many more issues beyond those that need to be addressed. Accordingly, high-level dialogues between the United States and China continue to be of the utmost importance.”

USCIB also submitted extensive written comments.

USCIB Members Highlight Business Role in SDGs During UN General Assembly

Published on October 9, 2018
L-R: Gabriella Rigg Herzog (USCIB), Daniel Schwartz (Mastercard), Chris Gray (Pfizer), Shaun Mickus (J&J), Louise Kantrow (former Permanent Representative of the ICC to the UN)
USCIB convened a side event, “Making, valuing and communicating SDG Impact: U.S. Business Signposts for the Next 5 Years.”
In 2019, the UN will consider the first three years of implementation of the UN 2030 Agenda for Sustainable Development, and consider possible changes.

 

As governments gathered in New York for the 73rd Session of the UN General Assembly (UNGA) from September 24 – 28, convened under the Presidency of Ambassador María Fernanda Espinosa Garcés (Ecuador), USCIB members highlighted the contribution and practical experience of the American private sector in advancing the United Nations Sustainable Development Goals (SDGs).

USCIB convened a side event, “Making, valuing and communicating SDG Impact: U.S. Business Signposts for the Next 5 Years.” The event was hosted by Deloitte on September 27th and gathered representatives from business, government and the UN system to share information and experiences in three areas critical to successful SDG action by businesses:

  1. Embedding sustainability into the core of company’s business models
  2. Measuring the impact of sustainability programs and initiatives
  3. Communicating impact to target audiences and key stakeholders

In 2019, the UN will consider the first three years of experience and implementation with the UN 2030 Agenda for Sustainable Development, and consider possible changes.  USICB’s event made clear that, three years into the 2030 Agenda for Sustainable Development, substantial progress has been made thanks to the commitment and action of U.S. business, but also flagged areas where stronger links with business would enhance progress towards the SDGs.

Director of the Office of Global Change at the U.S. Department of State Thomas DeBass acknowledged that business will deliver most of the funding for the SDGs, so it follows that governments and the UN must do a better job communicating to business. “Only 10 percent of the financing to achieve the SDGs will come through official development aid and related government sources,” said DeBass. “The other 90 percent will come about through private-sector investment. But we are still trying to convince the 90 percent using the language of the 10 percent.  We need to reorient our sales pitch to speak the language of business.”

Meanwhile companies recognize the business case for embedding sustainability across their operations. In fact, Novozymes’ Head of Corporate Sustainability and Public Affairs Claus Stig Pedersen noted, “we don’t have a sustainability policy, we have a business system that adjusts to sustainable development.”

Chief Strategy Officer for International Development at Deloitte Wade Warren pointed out that, “achieving the SDGs could unlock an additional $12 trillion in business opportunities.”  Yet, while business enthusiasm for the SDGs and the business opportunities that the SDGs create, is growing, the full potential of collaboration between the private sector, governments and the UN system has not been unlocked.

Norine Kennedy, USCIB vice president for environment, energy and strategic international engagement, called for a practical approach to “inclusive multilateralism” that will animate business to further develop and deploy technologies, know-how and investment to advance the Global Goals.

On September 27, the UN also held the third high-level meeting on Non-communicable Diseases (NCDs), which was attended by USCIB Vice President for Product Policy and Innovation Mike Michener. The two previous high-level sessions on NCDs took place in 2011 and 2014. The meeting on September 27th served as a comprehensive review of the prevention and control of NCDs and focused on the theme of strengthening health systems and financing for the prevention and control of NCDs, on each country’s path towards achieving universal health care, including through sharing evidence-based best practices, scientific knowledge and lessons learned.” The International Chamber of Commerce (ICC) UN Representative in New York Andrew Wilson represented the private sector. The outcome of this meeting was an adopted UN Declaration on NCDs. 

The UN General Assembly is the supreme governing body of the United Nations.  This year’s session that will continue throughout the year into spring 2019 will focuses on the theme, “Making the United Nations Relevant to All People: Global Leadership and Shared Responsibility for Peaceful, Equitable and Sustainable Societies.”

USCIB will continue to work with member companies, governments and the UN system, to share expertise and foster partnerships to continue to advance the 2030 Agenda for Sustainable Development, including through the Businessfor2030 web platform.

Chevron Wins Key Investment Arbitration Victory

Published on October 2, 2018

USCIB member company Chevron recently won a decisive victory in a long-running investment dispute with the government of Ecuador. A three-member international tribunal administered by the Permanent Court of Arbitration in The Hague issued an award in a long-running Investor-State Dispute Settlement (ISDS) case between Chevron and the government of Ecuador.  The tribunal ruled unanimously (including the arbitrator nominated by the Ecuadorian government) that the government of Ecuador violated its obligations under international treaties (including the U.S.-Ecuador Bilateral Investment treaty), investment agreements, and international law.  The tribunal held that a $9.5 billion judgment rendered against Chevron in Lago Agrio, Ecuador in 2011 was procured through fraud, bribery and corruption and was based on claims that had already been settled and released by the Government of Ecuador. The tribunal concluded that the fraudulent Ecuadorian judgment “violates international public policy” and “should not be recognized or enforced by the courts of other states.” Under international law, Chevron is not obligated to comply with the fraudulent judgment.

The tribunal held that following completion of an agreed environmental remediation program, Chevron was released by the Republic of Ecuador from the environmental claims that the fraudulent Ecuadorian judgment purports to address.  Following years of litigation, including visits to the former area of operations by the tribunal, the tribunal found that Ecuador violated the final release agreement that had certified the successful completion of TexPet’s remediation. TexPet was the joint venture between Texaco (subsequently acquired by Chevron) and Ecuadorian Government’s state-owned petroleum company. In more than 500 pages, the tribunal’s award details the evidence of the Lago Agrio plaintiffs’ legal team’s fraud and corruption in Ecuador, finding the evidence to be “overwhelming.”  The tribunal concluded:  “Short of a signed confession by the miscreants . . . the evidence establishing ‘ghostwriting’ in this arbitration ‘must be the most thorough documentary, video, and testimonial proof of fraud ever put before an arbitral tribunal.’”

“USCIB is encouraged that the international tribunal has rendered this important judgement and award, reaffirming that investment treaties and ISDS enforcement procedures are binding on all parties,” said USCIB Vice President for Investment and Financial Services Shaun Donnelly. “USCIB has strongly supported Chevron through this long-running case and has also long been a leading public advocate in the U.S .and internationally on the importance of strong international investment agreements (including U.S. Bilateral Investment Treaties and investment chapters in Free Trade Agreements) the ISDS disciplines to ensure implementation and compliance,” added Donnelly.

USCIB President and CEO Peter Robinson highlighted the significance of the recent tribunal ruling in the Chevron case, “We at USCIB were certainly delighted and not surprised to see the international tribunal come down with a ruling totally on the Chevron side in this long running investment dispute with the Government of Ecuador. The rejection of the fraudulent Ecuadorian court case against a respected company like Chevron and the use of words like “fraud…bribery…corruption” and the fact that the ruling was unanimous by the three-member independent tribunal clearly and decisively rejects the Ecuadorian charges against Chevron.  Even the Ecuadorian-appointed member of the tribunal joined in the unanimous ruling.  Beyond the specific implications of this case, this tribunal’s decision shows again the importance of international investment agreement sand of strong ISDS disciplines to enforce compliance by all parties, including host governments. I congratulate Chevron on this important victory and urge all parties to support strong investment protections around the world to help incentivize major investments and create the economic development, trade and jobs which flow directly from foreign direct investment in all directions.”

Donnelly Talks Trade and EU at Chautauqua

Published on October 2, 2018

USCIB Vice President for Investment and Financial Services Shaun Donnelly is serving as a speaker at a week-long Foreign Policy seminar at the historic Chautauqua Institution in Chautauqua, New York.  The biannual Foreign Policy seminar is  a joint effort of the Chautauqua Institution, the “Road Scholar” continuing education program, and the American Foreign Service Association (AFSA).

Donnelly, a retired U.S. diplomat, former Ambassador, and senior trade negotiator, is a long-time AFSA member.  In Chautauqua the week of October 1, he will be one of six experienced U.S. diplomats leading discussion sessions.

Donnelly will talk on two topics of interest of USCIB and its member companies – “U.S. Trade Policy in the Trump Era” and “The U.S. and the European Union – Partners? Rivals? Or Both?”

International Business Magazine: Fall/Summer 2018

Published on October 2, 2018

The Summer/Fall 2018 issue of USCIB’s quarterly International Business magazine is available here. The issue features a timely column by USCIB President and CEO Peter Robinson titled, “The Myth of Private-Sector ‘Conflict of Interest’ at the UN. The issue also features news stories on how tariffs harm companies and consumers, tax reform impacts, and reinforcing US-China tie, plus news from our global network–Business at OECD, the International Organization of Employers and the International Chamber of Commerce.

“International Business,” USCIB’s quarterly journal, provides essential insight into major trade and investment topics, a high-level overview of USCIB policy advocacy and services, USCIB member news and updates from our global business network.

Subscribe to USCIB’s International Business Magazine

Subscriptions to “International Business” are available free upon request to representatives of USCIB member organizations. Contact us to subscribe.

Non-members may subscribe to “International Business” and other USCIB print publications at an annual rate of $50 (U.S.) for domestic delivery, or $75 for overseas delivery. Contact us to subscribe. USCIB’s annual report, studies from the United States Council Foundation and related publications are included with your paid subscription.

Our free electronic newsletter, “International Business Weekly,” provides regular updates on USCIB’s major activities and priorities. Click here to view a sample issue. Click here to subscribe.

We welcome outside submissions and inquiries regarding our publications – send them to news@uscib.org.

We welcome advertising in International Business magazine — special discounted rates for USCIB member organizations! Contact Kira Yevtukhova (kyevtukhova@uscib.org) for more information.

 

USCIB Welcomes Trilateral Update of NAFTA

Published on October 1, 2018

Washington, D.C., October 1, 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 announcement of a United States-Mexico-Canada Agreement (USMCA), modernizing the North American Free Trade Agreement (NAFTA):

“We welcome the conclusion of a trilateral agreement between the United States, Mexico and Canada on the modernization of NAFTA, which is a longtime priority for our members and American business more broadly.

“The North American market is very important to the success of our members, and keeping the region economically integrated is vital for U.S. companies to remain competitive in the global market.

 “The USMCA contains numerous provisions important to our members, recognizing the many changes in the North American and global economies since the original agreement was signed a quarter-century ago. We look forward to reviewing the details of the agreement to ensure that it addresses our key concerns and priorities in lowering barriers to cross-border trade and investment.”

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 information is available at www.uscib.org.

Contact:
Jonathan Huneke, VP Communications
+1 212.703.5043 or jhuneke@uscib.org

Op-Ed Dispels Myths of Business “Conflict of Interest” at UN

Published on September 25, 2018

As the annual United Nations General Assembly is underway in New York this week and next, USCIB President and CEO Peter Robinson contributed a timely op-ed in The Hill, titled “UN’s private-sector phobia prevents if from hitting its lofty goals.”

“It is increasingly evident that the international community is not on track to deliver the expected results under the Paris Agreement (as well as the broader U.N. Framework Convention on Climate Change) or the U.N.’s Sustainable Development Goals,” writes Robinson. “So why, at a moment when governments and international organizations should be actively seeking ways to encourage business to step up, is the private sector being accused of having a ‘conflict of interest’ or of actively seeking to upend global consensus?”

Robinson points out that accusations of conflict of interest are rampant across UN agencies, including the World Health Organization and in the context of the UN climate talks. He then outlines six “myths” about business influence in international policy-making and dispels them one by one.

To read the full op-ed, please visit The Hill.

 

USCIB Contributes to Setting Principles in APEC Transit Guidelines

Published on September 25, 2018

USCIB represented industry at a workshop that was organized by Chilean Customs addressing Asia Pacific Economic Cooperation (APEC) Transit Guidelines. USCIB Director Customs and Trade Facilitation Megan Giblin attended the workshop which was held in San Pedro de Atacama, Chile, September 11 – 12, 2018.

Giblin participated in a panel with Chilean and Chinese Customs as well as World Customs Organization (WCO) representatives addressing the challenges and gaps on implementation of the APEC Customs Transit Guidelines. Overall the event was well attended and included participants from several APEC economies, including Chile, China, Indonesia, Mexico, Peru and Vietnam, as well as a handful of domestic Chilean industry representatives.

“USCIB participation in this event was critical in providing industry inputs into the process and is consistent with our longstanding engagement and leadership on customs and trade facilitation matters within APEC,” said Giblin. “The dialogue resulted in a positive discussion and general consensus on the ‘guidelines.’ These ‘guidelines’ are now viewed as ‘guiding principles’ and next steps among all parties, as well as secured a path forward for this issue as Chile takes on the APEC presidency in 2019.”

 

ICC Releases New Code of Conduct for Global Marketing Industry

Published on September 25, 2018
L-R: Carla Michelotti (International Advertising Association), Sheila Millar (Keller & Heckman), Lee Peeler (National Advertising Division)
Launched September 25 at a conference in New York, the new edition of the flagship ICC Marketing Code raises consumer protection standards around the world and expands rules in the digital realm.

The International Chamber of Commerce (ICC) has released the tenth revision of its flagship Advertising and Marketing Communications Code – a globally applicable self-regulatory framework developed by experts from all industry sectors worldwide. The ICC Marketing Code was launched on September 25 during the National Advertising Division’s 2018 Annual Conference in New York. ICC is the world’s largest business organisation, representing over 45 million companies and more than one billion employees. USCIB serves as ICC’s exclusive American national committee.

Underpinning self-regulatory frameworks in 42 countries, the ICC Marketing Code seeks to protect consumers by clearly setting out the “dos and don’ts” for responsible marketing to ensure legal, honest, decent and truthful communications and practices. This new revision ensures that the ICC Marketing Code takes into account emerging digital marketing and advertising practices, such as artificial intelligence-enabled marketing, market influencers, vloggers and data analytics.

“ICC’s global membership ensures that there is a worldwide consensus on Marketing and Advertising issues, and a unified voice when business speaks to the UN and to national governments,” said Carla Michelotti, vice president of the International Advertising Association and the vice chair of USCIB’s Marketing and Advertising Committee.

Sheila Millar, partner with Keller & Heckman and vice chair of the ICC Marketing and Advertising Commission, who joined Michelotti in unveiling the revised code, added: “The goal was to make sure that the ICC Code remains relevant to the marketplace of today, including modern technologies and marketing practices. We wanted to make it future-proof.”

The tenth revision of the ICC Marketing Code includes:

  • Enhanced guidance on distinguishing marketing communications content from true editorial and user generated content
  • Expanded coverage of the rules to include emerging digital mediums and participants
  • Consolidated rules on direct marketing and digital marketing communications
  • Updated terminology and guidance on the applicability of mobile phones and cross-devices to location-based advertising and interest-based advertising
  • Clarified rules on advertising to children and teens

“The digital transformation of marketing and advertising underscores the critical importance of trust between consumers and companies,” said ICC Secretary General John Denton. “The ICC Marketing Code sets the gold standard for ethical advertising that will help ensure consumer trust in the years to come.”

Brent Sanders, assistant general counsel at Microsoft and chair of the ICC Commission on Marketing and Advertising (as well as USCIB’s Marketing and Advertising Committee), agreed and noted: “The ICC Marketing Code has served as the inspiration for self-regulatory codes and as a building block for self-regulatory structures around the world. By ensuring advertising is honest, transparent and decent, these systems build consumer trust and provide quick and easy redress when transgressions occur.”

A Spanish-language edition of the newly-revised ICC Marketing Code will be launched in Cartagena, Colombia – and accessible globally online – on October 2.

The ICC Commission on Marketing and Advertising examines major marketing and advertising related policy issues of interest to world business and brings together top experts on self-regulation and ethical best practices in advertising and marketing communications. ICC has been the major rule-setter in international advertising self-regulation since 1937, when the Commission issued its first Marketing Code – one of the most successful examples of business self-regulation ever developed.

USCIB Voices Concerns With China’s WTO Commitments

Published on September 24, 2018

As part of the annual request by the U.S. Trade Representative for comments on China’s compliance with World Trade Organization (WTO) commitments and notice of public hearing, USCIB submitted comments on September 21 reflecting USCIB members’ feedback and concerns. Since China acceded to the WTO in 2001, while progress has been made in some areas, there still remain significant WTO obligation compliance concerns.

USCIB’s submission highlights concerns that arise in selected horizontal areas that transcend industry sectors, including IT security measures, China’s antimonopoly law, intellectual property rights, market access, national treatment and non-discrimination, the regulatory environment, standards, state-owned enterprises, customs and trade facilitation, taxation, labor laws, certification, licensing, and testing barriers. USCIB’s submission also addresses issues related to specific industry sectors that face problems in China, including agricultural biotechnology, audiovisual, chemicals, electronic payment access, express delivery services, recoverable materials, software, and telecommunications.

“On China’s fulfillment of its WTO obligations, USCIB acknowledges the efforts China has made since joining the WTO in 2001 to meet its obligations under the terms of its accession agreement,” said USCIB Senior Director for Investment, Trade and Financial Services Eva Hampl, who leads USCIB’s work on China. “However, there still remain significant WTO obligation compliance concerns. USCIB notes that its member concerns extend beyond those discussed in this paper, including government procurement; until China officially accedes to and implements the WTO Government Procurement Agreement (GPA), government procurement program concerns remain among USCIB members.”

A public hearing to discuss these issues is scheduled to take place on October 3, 2018. Hampl will be testifying and highlighting the most urgent issues to U.S. industry.