USCIB Weighs in With Administration on Trade Deficits

With the Trump administration seeking to reorient U.S. trade policy toward bilateral agreements, bilateral trade deficits have been put forward as a marker of the health — or lack thereof — of U.S. commercial relations with a given country. USCIB has taken up this issue in a recent statement to the Department of Commerce.

In its statement, USCIB said: “On the specific issue of trade deficits, particularly bilateral deficits (or surpluses) with individual countries, USCIB supports the view of most mainstream economists, who are convinced that trade deficits are a product of broader macroeconomic factors, not trade policy, and that the trade balance should not be viewed as a straightforward indicator of a country’s economic health. While it is useful to address trade barriers that impede access for U.S. goods and services exporters to specific markets, we should not set up bilateral trade balances as the metric of successful trade policies.”

Furthermore, the USCIB statement argued for greater attention to trade in services, not just goods, in any analysis of trade balances. “In the United States, services account for almost 80% of GDP, and services jobs account for more than 80% of private sector employment,” USCIB said. “Accordingly, a trade policy focused solely on trade deficits in manufacturing is misleading.”

The Commerce Department is expected to hold hearings on trade deficits later this week.

Shiles Joins USCIB as Head of ATA Carnet and Trade Services

Andrew Shiles

New York, N.Y., May 16, 2017 – Former FedEx executive and cargo industry veteran Andrew Shiles has joined the United States Council for International Business (USCIB) to lead the association’s dynamic portfolio of trade services, including the “merchandise passports” used by thousands of exporters around the world to get goods through customs quickly and easily.

As senior vice president of ATA Carnet and trade services, Shiles will work to expand U.S. trade interests through promotion of the ATA Carnet program. ATA Carnets are internationally recognized customs documents that permit temporary duty-free, tax-free entry of qualified goods for up to one year. They are used widely to facilitate entry of goods for trade shows, product samples and professional equipment.

“Andy Shiles brings extensive experience to this position,” said USCIB President and CEO Peter Robinson. “He has in-depth knowledge of trade and customs affairs, including ATA Carnet, and relationships with clients ranging from multinational corporations to SMEs to freight forwarders. In addition, Andy has strong connections with U.S. Customs, and has engaged in a number of important industry trade associations.”

USCIB manages and guarantees the ATA Carnet system in the United States, with responsibility for issuing ATA Carnets falling to two outside service providers, Roanoke Trade and the Corporation for International Business. ATA Carnets are accepted in 84 countries and territories, while the global ATA systems is overseen by the World Customs Organization (WCO) and the International Chamber of Commerce (ICC). USCIB serves as ICC’s American national committee.

Shiles comes to USCIB following more than 30 years at FedEx Express, the world’s largest air express cargo company, most recently as global regulatory compliance manager, where he served on USCIB’s Customs and Trade Facilitation Committee. His leadership experience in global supply-chain management includes participation in U.S. Customs and Border Protection’s Simplified Entry Working Group, which redesigned and implemented the current entry-clearance process into the United States.

Shiles also has extensive experience working with multiple government agencies, including the Food and Drug Administration, Department of Agriculture and Consumer Product Safety Commission. A self-professed “Yankee with a Southern accent,” Shiles was born in Manhattan and raised in the Southwest and in Tennessee, where he received his bachelor’s degree from the University of Memphis. He is a member of the International Compliance Professionals Association and the American Association of Exporters and Importers.

Find out more about the services offered by USCIB to facilitate cross-border trade and investment at www.uscib.org.

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

About USCIB:
USCIB promotes open markets, competitiveness and innovation, sustainable development and corporate responsibility, supported by international engagement and regulatory coherence. Its members include U.S.-based global companies and professional services firms from every sector of our economy, with operations in every region of the world. With a unique global network encompassing leading international business organizations, including ICC, USCIB provides business views to policy makers and regulatory authorities worldwide, and works to facilitate international trade and investment.

Upcoming Arbitration Events: Global YAF

International Chamber of Commerce (ICC) Global Young Arbitrators Forum (YAF) Event:

ICC Young Arbitrators Forum (ICC YAF) is organizing its 6th Global Conference in New York City on June 9-10, 2017 with a welcome reception on June 8. The conference will be hosted by Columbia Law School. The event will host preeminent speakers from Latin America, North America, Europe, Middle East and North Africa and Asia.

Additional program details, registration and a detailed agenda are available here.

Like it or Not, UN Needs Private Sector Input in Climate Talks

USCIB’s Norine Kennedy at the UN climate talks in Bonn

USCIB Vice President Norine Kennedy has an op-ed in The Hill today urging UN negotiators not to freeze the business community out of future discussion of climate change. The full text of the op-ed is available on The Hill’s website.

Kennedy, who attended the latest UN climate talks in Bonn last week, worked closely with the U.S. and other governments, as well as numerous business groups including the International Chamber of Commerce, to push back against proposals by a few governments and NGOs to curtail private-sector participation under the UN Framework Convention on Climate Change.

 


 

The Hill

May 15, 2017

Like it or Not, UN Needs Private Sector Input in Climate Talks

By Norine Kennedy

BONN, GERMANY—As the current round of U.N. climate talks here in Bonn near their conclusion, delegates are allowing themselves a sense of cautious relief. The Trump administration has postponed a final decision on its continued involvement in the UN climate treaty – and the Paris Agreement concluded in 2015 – until after this meeting concludes on May 18. A hard-working, albeit smaller-than-usual, U.S. delegation is on hand, and the talks are moving ahead on a range of technical matters.

(Read the full text on The Hill’s website.)

 

 

State Department Briefs USCIB on US National Action Plan

Melike Yetken (U.S. Department of State) addresses the USCIB Corporate Responsibility and Labor Affairs Committee

Melike Yetken, a senior advisor for corporate responsibility with the U.S. Department of State, provided an update for approximately 40 USCIB members on May 2 on the U.S. National Action Plan on Responsible Business Conduct (NAP). Yetken’s update was part of USCIB’s bi-annual Corporate Responsibility and Labor Affairs Committee, which took place over two days in Washington, DC. In her update, Yetken discussed the goals of the NAP – to emphasize positive contributions and to mitigate negative aspects and highlight that the U.S. is the only government that has written a NAP on responsible business conduct.

“This first U.S. NAP lays a great foundation,” said USCIB Vice President Gabriella Herzog, who recently came on board to lead USCIB’s practice on corporate responsibility and labor affairs. “This is particularly so since it brings together in one place all of the initiatives in which the entire U.S. government has been engaged for years – and in many instances, leading global efforts, whether on government transparency and anti-corruption or forced labor, child labor and human trafficking.”

USCIB co-hosted the first public consultation on the NAP two years ago and has since advocated alongside its global partners and other major business organizations for the U.S. and other governments to develop these strategic planning tools to implement the State Duty to Protect under Pillar 1 of the UN Guiding Principles on Business and Human Rights. When done well, NAPs can help support businesses in implementing their responsibility to respect human rights in their own operations and those of their business partners.

Committee Chair Laura Rubbo of Disney presided over these meetings, which were hosted at the offices of Foley and Lardner. The meeting spanned various pressing topics such as the OECD Due Diligence Guidance for Responsible Business Conduct, the International Labor Organization’s (ILO) program on decent work in global supply chains, the Customs Tariff Act of 1930 and human rights and mega-sporting events. USCIB members also heard from former USCIB staffer Adam Greene in his capacity as senior advisor for the Bureau for Employers’ Activities at the ILO who gave an exclusive update on the ILO Program on Decent Work in Global Supply Chains.

 

USCIB SDG Series: Countdown to the High-Level Political Forum

This year’s United Nations High-Level Political Forum on sustainable development will be held from July 10-17 under the auspices of the Economic and Social Council. The theme for the forum will be “Eradicating poverty and promoting prosperity in a changing world” focusing on the following Sustainable Development Goals (SDGs):

  • Goal 1.End poverty in all its forms everywhere
  • Goal 2.End hunger, achieve food security and improved nutrition and promote sustainable agriculture
  • Goal 3.Ensure healthy lives and promote well-being for all at all ages
  • Goal 5.Achieve gender equality and empower all women and girls
  • Goal 9.Build resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation
  • Goal 14.Conserve and sustainably use the oceans, seas and marine resources for sustainable development

USCIB is deeply engaged in all aspects of the 2030 Development Agenda, advocating for good governance and the rule of law, economic growth, investment in infrastructure, enabling environments to foster innovation, strong public-private partnerships and above all, an open channel for business input into policy negotiations and implementation.

USCIB believes that good governance and rule of law, infrastructure, enabling environments and private-public partnerships are the building blocks of success in achieving prosperity and eradicating poverty. While much work remains, USCIB members are already doing their part to ensure the realization of these goals. Each week, we will feature one of these goals in this publication. Additionally, we refer you to USCIB’s “Business for 2030” website which showcases the private sector’s contributions to the SDG’s. Stay tuned!

Donnelly Talks Trade, Investment at ACFR Annual Conference

USCIB Vice President for Investment Policy Shaun Donnelly was the closing keynote speaker at the American Committees on Foreign Relations (ACFR)  22nd annual conference in Washington, April 28. The overall conference theme this year was “Commerce, Investment and Trade: American Prosperity in an Uncertain World.”

Donnelly’s remarks focused on the trade and investment policy opportunities and challenges confronting the new Administration. In a lively question and answer session, Donnelly offered perspectives on issues from NAFTA renegotiation, trade deficits, competition from China to promoting American innovation. ACFR is an association of local foreign policy programming and discussion groups in thirteen major cities around the country.

“It’s encouraging to see a mainline foreign policy group such as ACFR focusing increasingly on economic, trade, and competitiveness,” said Donnelly. “As former Secretary of State John Kerry always said, economic policy is foreign policy and foreign policy is economic policy.”

Giblin Speaks on American Bar Association Panel on Customs

USCIB’s Director for Customs and Trade Facilitation Megan M. Giblin spoke at the spring meeting of the American Bar Association Section of International Law event last Friday, April 28. The event featured more than 60 panels highlighting different aspects of the theme of the conference – “New Leaders, New Laws: 2017 and Beyond.” Giblin spoke on a panel titled “U.S. Measures to Combat Human Trafficking; Responses in the Corporate World,” along with Alice Kipel of U.S. Customs and Border Protection (CBP), Ken Kennedy of U.S. Immigration and Customs Enforcement and Eric Gottwald of the International Human Rights Forum.  The panel was tied to the topic of forced labor and the provisions of the Trade Facilitation and Trade Enforcement Act (TFTFA) of 2016, which repealed the “consumptive demand” clause in 19 U.S.C. §1307.  The focus was on what happens at the ICE and CBP levels on the issue of forced labor, the work industry is carrying out as members are getting caught up in the import prohibition tied to the issuance of Withhold Release Orders (WROs) by the CBP Commissioner, as well as the matter of submissions made by, for example, Civil Society Organizations seeking action under 19 U.S.C. §1307.

Since 15 days after the passage of TFTEA, CBP has not been enforcing the “consumptive demand clause” there have been a series of WROs issued by the CBP Commissioner. All WROs now relate to specific companies in China. The product scope is stevia and its derivatives, peeled garlic as well as a series of chemicals some that can be mined and later manufactured into viscose rayon, for example. No new WROs have been issued since late 2016.

CBP is focused on stopping a specific shipment at time of import, ICE is focused on criminal actions tied to forced labor. What is clear is that the discretions are not the same.

As communicated by then CBP Commissioner Kerlikowski in Congressional testimony in September 2016, we know that there have been shipments stopped by CBP at time of import, which have resulted in either U.S. importers having to re-export the shipments and/or the importers having to provide significant amounts of information to CBP to prove that the specific shipment is clear and free from forced labor. Further, we understand that not only have some shipments been released by CBP for re-export, some shipments have been released for entry into the commerce of the U.S.

The main issue from the customs side is that once a WRO is issued and a there is a submission that links a specific importer, to a specific shipment, to a specific entity listed in a WRO, then U.S. import shipments can and are being detained at the customs border. The shipments are stopped under suspicion that the goods may have had forced labor in their supply chain. “From an industry perspective, there is concern over a shipment being held, transparency over why a shipment has been stopped, timeliness of communications with the importer, brand impact because of a a shipment being detained, not to mention that if information is shared about an importer who’s shipment is stopped there is not always clear communication to parties once an importer has proved  its supply chain is clean and the shipment has been released into the commerce of the U.S.,” said Giblin during her panel. “The regulations are from the 1960’s. Today’s supply chains, global value chains are extremely complex and lots of information must be provided to prove they have a clear supply chain.”

USCIB in the News: Business and the UN Climate Process

USCIB Vice President Norine Kennedy and CEO Peter Robinson at COP21 in 2015.

The Financial Times has published a letter to the editor from USCIB Vice President Norine Kennedy on the role of business in the UN climate change talks — please see below. The op-ed is also available on the FT’s website.

Publication of this letter comes as UN members gather in Bonn, Germany for talks leading up to this December’s COP23 summit. A few governments and interest groups have called for new rules aimed at restricting the private sector’s participation in the UN climate process. Kennedy’s letter forcefully rebuts these efforts.


Financial Times

May 4, 2017

Letter

Business takes its climate responsibilities seriously

From Norine Kennedy, New York, NY, US

Sir, Regarding “Developing nations seek to reveal business influence on climate talks” (May 1): the UN is at its best when it opens its doors to all relevant stakeholders. Potential conflicts of interest pertain to all organisations, not just business associations. Business representatives are obliged to abide by all UN rules as a condition of their attendance at UN meetings.

We take this responsibility seriously. Just two years ago, my organisation joined others from around the world in celebrating the Paris Climate Agreement. The political will needed to reach consensus in Paris was spurred in part by support from business. Now, disappointingly, some wish to disinvite the private sector.

Since it is business that will deliver the lion’s share of the investment and innovation needed to confront the climate challenge — a fact recognised in the Paris Agreement — shouldn’t the conversation include business representatives? How else can governments and other stakeholders develop effective policy frameworks to unlock potentially game-changing solutions?

Norine Kennedy
Vice President, Energy and Environment,
United States Council for International Business,
New York, NY, US

USCIB Op-Ed: Time for Some ‘Tough Love’ at the UN

U.S. Ambassador to the UN Nikki Haley (credit: U.S. Mission to the UN)

The Hill has published an op-ed by USCIB President and CEO Peter Robinson on UN reform — see below. The op-ed is also available on The Hill’s website.

This op-ed follows on a letter to the New York Times on the same topic last month, as well as an op-ed on UN funding in January. It further advances USCIB’s position that the UN must work more effectively with the private sector and other stakeholders to advance shared goals.

 

The Hill

May 1, 2017

Opinion

Ambassador Haley needs to dole out some ‘tough love’ to United Nations

By Peter Robinson, opinion contributor

Critics of the United Nations are gaining ground in Washington. Proposals to defund and disengage from the U.N. have been put forward on Capitol Hill and by the Trump administration in its proposed budget.

As a longtime observer of, and participant in the U.N. representing the American business community, I’d like to offer some unsolicited advice to Ambassador Nikki R. Haley, the U.S. representative to the U.N., on how we could work to improve the global body.

The U.N. deserves a lot of the criticism being leveled at it. Many observers, myself included, acknowledge that parts of the U.N. system often suffer from poor management, an inability to efficiently set and meet priorities and the tendency to take an unbalanced view toward certain stakeholders.

This is evident in the organization’s attitude toward the private sector. There have indeed been positive experiences, such as in the U.N. 2030 Development Agenda, where the U.N. is reaching out to the private sector to meet commonly agreed goals of poverty reduction, environmental protection and better governance.

But too often, in many parts of the U.N. system, the business community is still regarded with suspicion, and its motives are called into question or criticized as a conflict of interest. With criticism of the U.N. on the rise, now is the time for the United States to push for effective reform. Here are four areas where the U.S. could exercise some “tough love” in the United Nations.

First, insist on good management. Financial resources are scarce, and we need to know that our taxpayer dollars are being used wisely. New U.N. Secretary General Antonio Guterres has pledged to make the organization leaner and more effective.

Work with him to increase the ability of the U.N. Office of Internal Oversight Services to act as a truly independent “inspector general” throughout the U.N. system, with direct reporting back to U.N. governing bodies authorized to take specific action on recommendations.

Second, demand more transparency and accountability. The U.N. has taken steps to open its doors to non-governmental entities, but much more needs to be done, particularly from the standpoint of the business community. Too often, the U.N. sets global norms and standards with little or no input from outside stakeholders, including the private sector.

This is unfortunate, especially given the extent to which business is looked to for funding, innovation and implementation in such areas as climate change, improved nutrition and better health care. In addition, some U.N. agencies, such as the World Health Organization, actively blacklist business organizations from even observing their activities. This damages the U.N.’s credibility and effectiveness.

Third, ensure the U.N. avoids redundancy and mission creep. While the U.N. plays a central role in global governance, it cannot and should not do everything or have the final say. United Nations negotiators are sometimes too eager to take up issues already being addressed elsewhere, like in global taxation, data and privacy issues, or intellectual property rights.

This not only wastes government time and money, it creates uncertainty and confusion for companies and everyone else. The U.S. should guide the U.N. and its specialized agencies to focus their resources on areas where they can add the most value and where they have a clear mandate.

One way to do this would be to develop stricter guidelines for voluntary contributions from member states, which are usually funds over and above assessed contributions for pet projects that often deviate from an agency’s mission.

Fourth, and perhaps most important, encourage the U.N. to partner with the private sector. Governments can’t do everything. The World Bank estimates that effectively tackling global problems of poverty, health, job creation and energy access will require trillions of dollars over the next 15 years, with much of that coming from the private sector in the form of project finance and foreign investment.

But this won’t happen if business views are sidelined or ignored. The U.S. should spur the U.N. to step up its partnerships with companies in such areas as innovation, infrastructure and investment.

Ambassador Haley should focus especially on U.N. agencies and bodies that have kept the business community in the dark or at arm’s length. Organizations such as the WHO and U.N. Human Rights Commission have drifted away from their core agendas and have enacted counterproductive restrictions on business — a key community which is keen to bring resources, expertise and implementation to advance their respective missions.

We should insist on inclusive and transparent governance in the U.N., with an open door for responsible actors from civil society, including the private sector.

The United Nations has made important progress, and it must continue to seek out new opportunities for collaboration that can improve lives and increase prosperity in the United States and around the world.  But none of this can happen if the United States is not at the table. The U.N. was in large part an American creation. It’s going to be up to us to try to fix it.

Peter M. Robinson is president and CEO of the United States Council for International Business.