ICC Identifies Business Priorities for Digital Economy

Published on October 23, 2014

L-R: Eric Loeb, chair of USCIB’s ICT Committee and chair of ICC’s Task Force on Internet and Telecommunication, and Christoph Steck, co-chair of ICC”s Task Force on Internet and Communications.

Gathering 34 business experts representing companies and organizations leading the International Chamber of Commerce’s (ICC) policy work on information and communication technologies (ICTs), the biannual meeting of the ICC Commission on the Digital Economy identified next steps on priority topics for global business including Internet governance, privacy and cyber-security, and trade facilitation – and linking these specific priorities to overall strategic ICC messages. The event took place at ICC global headquarters in Paris on September 30 and October 1.

In remarks to the commission, ICC Secretary General John Danilovich said ICC plays a leadership role on behalf of world business in the Internet Governance Forum (IGF) through the ICC Business Action to Support the Information Society (BASIS).

“While attending the last IGF in Turkey, I was able to see first-hand some of the issues carried by this commission and how, through your work and that of the BASIS initiative, ICC is able to lead global business engagement in the forum,” he said.

In the context of a strategic discussion on Internet governance, Alhadeff and Eric Loeb, chair of the commission’s Task Force on Internet and Telecommunications and chair of USCIB’s ICT Committee, suggested that the preparation of the commission’s Global Action Plan – a compilation of business positions on digital economy policies – should strive to highlight the relevance of these issues to all sectors, as well as their relevance to the work of other ICC commissions and top-line business messages.

Staff contact: Barbara Wanner

More on USCIB’s Information and Communications Technology Committee

World Investment Forum Looks at Leveraging FDI to Support Sustainable Development

Published on October 16, 2014

L-R Peter Robinson (USCIB) and Mukhisa Kituyi (UNCTAD)

USCIB and the International Chamber of Commerce brought a pro-business, pro-investment perspective to the three-day World Investment Forum, which took place this week in Geneva.

Organized by the UN Conference on Trade and Development (UNCTAD), the biennial forum gathers heads of state, global CEOs and civil society leaders for dialogues on the world’s emerging investment-related challenges. This year’s event had a special focus on leveraging investment to support the UN’s Sustainable Development Goals (SDGs).

On Tuesday, the forum’s first day, ICC leaders and Mukhisa Kituyi, the UNCTAD secretary general, co-chaired the 11^th meeting of the Investment Advisory Council. During the open discussion, Shaun Donnelly, USCIB’s vice president for investment and financial services, made a strong pitch for bilateral investment treaties and free trade agreements, which was echoed by a range of business and government representatives. ICC and USCIB Chairman Terry McGraw and ICC Secretary General John Danilovich spoke at the forum’s opening plenary, where they were joined by senior government officials.

Also on Tuesday, McGraw, Danilovich and USCIB President and CEO Peter Robinson met with Roberto Azevedo, the director general of the World Trade Organization, to discuss ways to restart the stalled Trade Facilitation Agreement. At the meeting Robinson thanked Azevedo for his leadership and said he looked forward to honoring him at USCIB’s annual award dinner in Washington, DC on November 19.

Mobilizing the Private Sector

On the forum’s second day, Robinson delivered plenary remarks, in which he discussed the four key elements that would crystallize private-sector support for sustainable development: good governance, economic growth, innovation and infrastructure. He noted that governments and businesses must work together to facilitate initial investments in least developing countries that lack basic infrastructure. Initial infrastructure funding can then help leverage further investments, leading to a “virtuous cycle.” He also made the case for investment protection.

“Let’s continue the dialogue and partnership to harness investment as a key driver of economic, sustainable and inclusive development,” Robinson concluded. “And work together to create the virtuous investment circle, particularly in those countries that need it the most.”

Given the forum’s focus on investment for the SDGs, Robinson also emphasized that “taken together, open international trade and investment are important inter-related fundamentals and key drivers for engaging the private sector in achieving global economic growth that is inclusive, and environmentally and socially sustainable.”

On Thursday Robinson and Donnelly took part in key panel discussions on the role of bilateral and multilateral investment agreements and on investor-state dispute settlement (ISDS), where they spent over four hours defending investment agreements and ISDS in a morning-long Investment Agreement session, the centerpiece session during the final day of UNCTAD’s World Investment Forum.

With over 50 speakers limited to three-minute interventions, government and NGO representatives were often critical of investment agreements and ISDS in particular, whereas business voices were scarce. Robinson explained the overall importance of international investment agreements, while Shaun tackled the sensitive ISDS issue, emphasizing the need for effective enforcement measures to truly incentivize and protect FDI flows that are vital for economic growth, development and job creation. Donnely also highlighted USCIB’s strong opposition to any sectoral carve-outs from ISDS protections.

Although too many government participants opposed ISDS, Michael Tracton, director of the investment office at the U.S. Department of State, voiced support for strong investment agreements and ISDS, citing the high standards and balance of the USG’s Bilateral Investment Treaty and free trade agreement investment chapters.

Unfortunately, opposition to ISDS from NGOs has shown no signs of letting up. “USCIB will continue to confront these pressures internationally at forums like UNCTAD and in free trade agreement negotiations, voicing our strong support for common-sense, pro-business investment policies,” Donnelly said. “We will continue to leverage our international networks BIAC and ICC to mobilize international business support for these policies.”

Staff contact: Shaun Donnelly and Eva Hampl

More on USCIB’s Trade and Investment Committee

Leveraging Partnerships to Combat Malnutrition

Published on October 15, 2014

As part of a series of public discussions leading up to the Second International Conference on Nutrition (ICN2), the United Nations Food and Agriculture Organization hosted a dialogue on October 14 in Rome about the critical role public-private partnerships in fighting malnutrition. The well-attended event convened representatives from member states, the private sector and civil society to raise awareness of global nutrition issues and catalyze support for partnerships. Dr. Nancy Stetson, special representative for global food security at the U.S. Department of State, noted that partnerships are necessary to reduce global hunger and malnutrition.

Louise Kantrow, ICC’s permanent representative to the UN, made a strong case for engaging the private sector as a full partner in deciding strategies for addressing malnutrition, since business is involved throughout the entire agriculture supply chain, from seeds to food processing to all the products farmers need to grow and distribute food.

“The UN has recognized that the problems confronting the global community now know no boundaries and all actors in society must come to the table and provide inputs,” said Kantrow, who also stressed the importance of trade and investment in the agriculture industry as it relates to economic development, empowering women, and innovation as areas where the private sector can contribute to the fight against malnutrition.

USCIB will attend ICN2 in November at the FAO’s headquarters in Rome.

Read the event summary on the FAO’s website.

Staff contacts: Louise Kantrow and Helen Medina

More on USCIB’s Food and Agriculture Committee

More on USCIB’s Product Policy Working Group

ICC Marketing Commission Looks at New Challenges to Ad Standards Worldwide

Published on October 6, 2014

During Ad Week in New York, ICC and USCIB representatives brought a global perspective to the annual meetings of the U.S. Advertising Self-Regulatory Council. L-R: Manuela Carvalho (Publicis Brazil), Sheila Millar (Keller & Heckman), Elizabeth Thomas-Raynaud (ICC).

As technology, media and consumer tastes continue to rapidly change and evolve, brand owners, advertisers and regulators are struggling to keep pace. Some countries are becoming more restrictive in food and beverage marketing, social media and marketing to children, while others are embracing a model of industry-led standards and self-regulation.

Last week, as the advertising world descended on New York for Ad Week, USCIB helped host a timely meeting of the International Chamber of Commerce (ICC)’s Marketing and Advertising Commission at the headquarters of 21st Century Fox. The commission encompasses experts in advertising standards from around the world, and oversees ICC’s longstanding Marketing Code – the benchmark for responsible marketing practices in numerous countries.

At the annual meeting of the Children’s Advertising Review Unit (CARU), which is part of the main U.S. advertising self-regulatory body, the Advertising Self-Regulatory Council, USCIB and ICC members brought a global perspective to discussions of ad standards, enforcement and changing consumer preferences. Sheila Millar (Keller & Heckman), vice chair of the ICC commission, was joined by Elizabeth Thomas-Raynaud of the ICC secretariat and Manuela Carvalho of Publicis Brazil for a discussion on “Exploring the Global Landscape for Marketing to Children.”

Carvalho noted the often vast differences in standards in various Latin American countries when it comes to using children as advertising pitchmen, airing ads targeted to children on television during certain hours, and addressing the role of parents in purchasing decisions. These differences, she said, often preclude marketing and advertising practices that would be deemed acceptable in the United States, such as a TV ad by a well-known fried chicken brand that uses child actors to evoke nostalgia for the product among adult consumers.

“Empowered” consumers vs. “insidious” marketers?

ICC Marketing and Advertising Commission Chair Brent Sanders (Microsoft) discussed the latest developments in what’s come to be known as “native advertising,” the blending of paid and editorial content.

At the main meeting of the ICC Marketing and Advertising Commission, which drew strong U.S. participation along with representatives from several other countries, Commission Chair Brent Sanders (Microsoft) led an overview of the latest developments in so-called “native advertising.” This encompasses a variety practices that embed advertising or sponsored messages in editorial content, such as sponsored posts on a Facebook feed.

“Often the growth in native advertising is negatively depicted solely as consequence of the rapid decline in effectiveness of traditional banner ads” observed Chris Payne of the World Federation of Advertisers. “What is often forgotten is that this is itself a consequence of a shift in demand from advertisers, driven by the proliferation of social media and other online platforms. It is this change in demand which the industry is reacting to; in the future minimal disruption and maximum engagement will be key.”

“As such the move to a more harmonised, integrated means of engagement is a positive response to a shifting consumer landscape,” Payne said. “However, we must remain sensitive to the concerns of broader society, especially those concerns that question the integrity of industry and, where possible, we should work to address these concerns.”

Proliferating food labeling proposals

Other issues discussed by the commission included the proliferation of proposals – many quite draconian – to restrict food and beverage marketing in Latin America and other regions. Mary Catherine Toker (General Mills) shared a proposal currently under consideration in Chile that would call for “stop sign” warning labels and advertising bans on most packaged food products sold in Chile. The nutrition standards are inconsistent with internationally accepted science and many trade experts believe that the proposed regulation violates Chile’s international trade obligations.

“We have a serious commitment to providing clear, fact-based nutrition information to consumers,” said Toker. “As members of the International Food and Beverage Alliance, we have made a global commitment to a common, science-based nutrition labeling system – providing information on the seven globally-recognized nutrients on pack with calories prominently placed on the front of pack, as well as to responsible advertising. We know from our consumers that they are not looking for warning labels and stop signs when making choices about feeding their family. Rather, consumers are seeking factual, science-based and objective nutrition information that allows them to make decisions based on their individual dietary needs.”

ICC and USCIB have long recognized the importance of responsible advertising as the engine of free content and an important key to making consumers aware of available products and services. New global regulations that threaten to restrict some types of advertising are a reminder to all advertisers of the need to remain actively engaged in promoting responsible self-regulation.

Staff contact: Jonathan Huneke

More on USCIB’s Marketing and Advertising Committee

ICC Appoints New Vice Chair of Commission on Customs and Trade

Published on October 2, 2014

The International Chamber of Commerce (ICC) announced the appointment of Luis Fernando Barbosa Sahagun as the new vice chair of the Commission on Customs and Trade Facilitation.

Barbosa is a partner at Global Business-Customs Solution Consulting Group (Mexico), a member of the International Customs Law Academy in Spain, and a businessman in international trade and customs holding board positions in several Mexican oil and gas companies.

As current chairman of the ICC Mexico Commission on Customs and Trade Facilitation, he liaises with the national authorities on behalf of the Mexican business community to improve the country’s customs and logistical operations and enhance trade facilitation.

“The ICC Commission on Customs and Trade Facilitation stands to benefit greatly from Barbosa’s broad expertise in areas relating to international trade, customs and logistics, as well as from his close relationships with chambers of commerce and industry representatives in Latin America,” said ICC Secretary General John Danilovich.

Register for ICC’s Banking Supply Chain Summit

Published on September 5, 2014

Given the volatile economic climate in the wake of the financial crisis, innovations in working capital flows are more vital than ever before. That is why USCIB and its global network are focusing on the establishment of new financial solutions that will enable companies to maintain a resilient supply chain.

USCIB invites you to join a gathering of the world’s leading supply chain finance experts for timely and thoughtful discussions about the forces driving change in trade finance.

ICC’s 3^rd Annual Supply Chain Financing Summit
October 22-23, 2014
Maison des Arts et Métiers
Paris, France

This summit will provide an opportunity for large and small companies to learn from experienced global professionals about their visions and strategies in the new area of supply chain finance. Topics of discussion include streamlining of trade finance operations, the changing landscape from the BPO (bank payment obligations) perspective, the impact of the regulatory environment, dealing with logistical hurdles, and more. The chair of USCIB’s Banking Committee, Michael Quinn (JP Morgan), will speak at a panel titled “BPO: From Conception to Adoption.”

In addition, prior to the summit on October 21, participants will have the chance to take part in a web-based simulation game where they’ll learn to balance the constraints and manage the interdependencies of the physical and financial supply chain.

USCIB members may register online for the event at a discount by entering the code USA-9262.

Staff contact: Eva Hampl

More on USCIB’s Banking Committee

Junior Chamber Summit Highlights Youth Role in Economic Development

Published on August 7, 2014

More than 500 young professionals met with business, civil society and government leaders to discuss how to solve challenges encountered by today’s youth at this year’s Junior Chamber International (JCI) Global Partnership Summit, which took place July 23-25 in New York City.

The summit marks 30 years of cooperation between the International Chamber of Commerce, JCI and the World Chambers Federation (WCF) – a specialized division of ICC encompassing chambers of commerce from every region of the world. USCIB is ICC’s American affiliate.

During the event, Cynthia Duncan, USCIB’s senior vice president for Carnet and Trade Services, and chair of the World ATA Carnet Council, spoke about the dynamic cooperation between JCI and WCF on a wide range of initiatives.

She called on JCI members to continue supporting ICC and G20 efforts to foster education and entrepreneurship, and she urged the new generation of leaders to formulate and advocate policy proposals that will “contribute to a sustainable global economy and reduce youth unemployment.”

Focusing on the role of young active citizens and their contribution to the post-2015 global development process, the conference aimed to provide young professionals with the tools and information necessary to impact their communities through targeted action and strategic partnerships.

More at ICC’s website.

Every two years, WCF organizes the World Chambers Conference, the only global gathering of chambers of commerce from around the world. The 9^th World Chambers Congress will take place in Torino in June 2015.

Staff contact: Cynthia Duncan

Business to G20 Drive Growth With Trade

Published on July 18, 2014

Concluding the Business-20 (B20) Summit in Sydney today, CEOs from around the world have called on the G20 to forge ahead with opening global markets, by liberalizing trade and investment policies, as the surest way to revive economic growth and job creation. The B20 Summit is an important opportunity for the global business community to provide input into the process leading up to the G20 Summit in Brisbane, Australia in November. Executives from USCIB member firms and across our global network played a prominent role.

“The most effective way to stimulate the economy and employment is moving ahead with a robust trade agenda” – Terry McGraw, USCIB Chairman.

CNBC Interview with USCIB Chairman Terry McGraw

The International Chamber of Commerce led a delegation of business leaders and CEOs to the B20 Summit, including USCIB and ICC Chairman Harold (Terry) McGraw III, for two-day discussions with business and government representatives. The event saw the finalization and prioritization of 20 mutually reinforcing recommendations for action by G20 leaders that if adopted, would exceed the two percent growth target set by G20 finance ministers in February.

“In a time of low, slow growth the most effective way to stimulate the economy and employment is moving ahead with a robust trade agenda,”said McGraw. “That is why first and foremost, G20 nations should implement and ratify the Trade Facilitation Agreement that the WTO agreed to in Bali last December. By removing barriers to trade and cutting red tape this agreement has the potential to reduce total trade costs by 10 percent in advanced economies and by 13-15.5 percent in developing economies.”

Political and business leaders at the summit included Australian Prime Minister Tony Abbot, Australia B20 Chair Richard Goyder and Australian American business icon Rupert Murdoch.

Coordinated Push on Global Trade

With the World Trade Organization forecast for global trade in 2014 still below the 20-year average, ICC has called on G20 leaders to promote a multilateral approach to international trade and investment and to demonstrate the G20’s continued relevance to global governance by maintaining momentum on trade.
Specifically, ICC seeks collective action to remove barriers to global exports of tradable services by making progress on an international trade in services agreement and also calls for further expansion of an International Technology Agreement relating to the export of IT products.
As the voice of global business,ICC and its American affiliate, USCIB, have also pressed for the greater promotion and protection of cross-border capital flows – especially foreign direct investment – an infrastructure information hub to increase the pipeline of bankable, investment-ready projects and a multilateral framework on investment that will create an enabling environment for greater investment across borders.

“All of us – the business community, government and NGOs – need to work together and push for more cooperation from all sides in order to build on the momentum coming from the Bali agreement and realize the promise of global trade as a means of raising standards of living around the world,” added McGraw.

During a panel discussion about ways to accelerate global trade, WTO Director General Roberto Azevedo noted that at the end of the day, government acts because the private sector pushes, and the Bali agreement would not have happened without business’s involvement. USTR Ambassador Mike Froman and McGraw added that a strong WTO is necessary to implement the Trade Facilitation Agreement and to prevent countries from lapsing back into protectionist national agendas.

Action Needed on Labor and Taxes

Following the first day of B20 Summit discussions, the secretary general of the International Organization of Employers, Brent Wilton, commended the G20 labor ministers for commitments they made last July to address labor market structural problems, education and workforce development. However, Wilton said those commitments haven’t been sufficiently implemented. He noted that the G20 labor ministers must “walk the talk” and follow up on the employment plans they committed to in September.

Also following the B20 Summit, the international business community is looking at the Organization for Economic Cooperation and Development (OECD) for knowledge and leadership in the run-up to the G20 Summit in November, especially on global tax issues.

“The OECD is in a unique position to advise governments on the benefits of open markets and structural reforms,” said Phil O’Reilly, chair of the Business and Industry Advisory Council (BIAC) to the OECD. Speaking at a meeting with OECD Secretary General Angel Gurria and G20 Business leaders in Sydney, O’Reilly said “The OECD mandate to develop a sustainable framework for international taxation is a case in point. The design and framework will be critical for the global economy. It must encourage and not hinder trade and investment across borders.

USCIB plays a leading role in OECD global tax discussions and recently held its annual International Tax Conference, organized with BIAC and the OECD.

Forging Ahead

Comprising over 30 CEOs and prominent business leaders, the ICC G20 CEO Advisory Group has been a platform for continuity in the B20 process between Summits, soliciting priorities and recommendations from companies and business organizations of all sizes and in all regions of the world.

ICC Secretary General John Danilovich said: “For the fifth consecutive year, ICC CEOs held leadership positions in the B20 task forces and contributed significantly to the development of the final recommendations. ICC’s participation in the B20 will contribute significantly to turning Mr. Abbott’s objectives for the Australia leg of the G20 into concrete action to drive measurable progress on the underlying G20 agenda of trade, growth, and jobs.”

“Looking ahead to the Brisbane G20 Leaders Summit in November, ICC will remain fully engaged with B20 leaders to rally ICC’s far-reaching network of companies and chambers of commerce to advocate for G20 Leader endorsement of the B20 recommendations,” said Danilovich.
ICC’s G20 CEO Advisory Group mobilizes worldwide policy-making expertise and solicits priorities and recommendations from companies and business organizations of all sizes and in all regions of the world. The group is composed of over 30 CEOs and business leaders working to ensure that the voice of business is heard by governments, the public and the media before, during and after each Summit.

Staff contact: Rob Mulligan

More on USCIB’s Trade and Investment Committee

ICC Advises Against Exit Taxes

Published on July 17, 2014

As some European countries consider adopting exit taxes to increase revenue, the International Chamber of Commerce issued a policy statement warning that exit taxes could seriously disrupt international business restructurings and movements of capital.

The ICC statement strongly advises against exit taxes regimes which generally seek to tax unrealized gains the moment a company’s seat or assets leave the country. USCIB contributed to the development of this statement.

“While the international community is currently debating a fundamental restructuring of the international taxation system, we see that as a means to increase their revenues more countries are considering levying additional taxes, such as exit taxes,” said Chirstian Kaeser, global head of tax at Siemens and chair of the ICC Commission on Taxation. “These taxes increase the risk of double taxation and thereby negatively impact investment and growth at a time when economic recovery is still fragile,”

The revised policy statement acknowledges recent developments, most notably the Organization for Economic Cooperation and Development (OECD) Base Erosion and Profit Shifting Project (BEPS) initiated by the G20. USCIB plays a leading role in OECD global tax discussions and recently held its annual International Tax Conference on BEPS.

Business Makes the Case for Gender Diversity

Published on July 16, 2014

The International Chamber of Commerce (ICC) Secretary General John Danilovich has urged businesses and governments to step up efforts to engage women more fully in the workforce, particularly in leadership positions.

Danilovich told business, government and university representatives gathered in Sydney that despite making up over half of the world’s population, women’s contribution to measured economic activity was far below its potential.

“There is a huge unrealized economic opportunity,” said Danilovich. “Given the need for effective solutions to sustain global growth, it is both economically and socially necessary to tap into the skills and talent of women that are currently underutilized or left out of the labour force altogether. Since 812 million of the 865 million women worldwide who have the potential to contribute more fully to their economies live in the developing world, this is especially necessary for emerging and developing nations, since.”

The new ICC Secretary General was speaking at an event called “Women’s Empowerment Principles: Equality Means Business”, organized by the Australian Chamber of Commerce and Industry alongside this week’s B20 summit for business leaders from Australia and across the G20 member countries.