Washington Update: October – November 2016

Washington DCDuring the months of October and November, 2016, USCIB Staff filed a 65-page submission with USTR on foreign trade barriers, testified before the U.S. Government on China concerns, launched a new Working Group on Digital Trade, led coalition meetings in Geneva pressing completion of the EGA, contributed to the OECD public consultation on transfer pricing, met with government leaders at the 2016 APEC CEO Summit, and much more. Below are summaries of these and other highlights from the activities of USCIB in Washington, D.C. over the last two months. If you have any questions or comments, or want more information on a specific topic, please contact any of the staff members listed at the end of this brief.

Download the full update.

Ernst Young Partners with US State Department in Support of Women Entrepreneurs

In early October, USCIB member Ernst & Young partnered with the Bureau of Information Resource Management’s Office of eDiplomacy at the U.S. Department of State for the Woman’s Entrepreneurship in the Americas Initiative. This public-private partnership will benefit women entrepreneurs in Colombia, El Salvador, Bolivia and Argentina.

The State Department announced the partnership on October 3:

On Thursday, October 2, the U.S. Department of State announced a new partnership between Ernst & Young (EY), a multinational professional services firm headquartered in London, and the Bureau of Information Resource Management’s Office of eDiplomacy at the Department of State. The partnership was sealed by signing a memorandum of understanding (MOU) outlining a public-private partnership that will directly benefit women entrepreneurs in four Latin American countries as part of the Women’s Entrepreneurship in the Americas Initiative (WEAmericas).

Under this new partnership, EY will contribute to the long-term impact of four interactive technology workshops called “TechCamps” which the Department will conduct over the next six months. The Bureau of Information Resource Management will manage the WEAmericas TechCamps in partnership with the Bureau of Western Hemisphere Affairs (WHA), the Secretary’s Office of Global Women’s Issues, and U.S. embassies in Colombia, El Salvador, Bolivia, and Argentina. These workshops will enable women entrepreneurs in those countries to make better use of technology to grow their businesses. EY-affiliated firms in each of the four countries will provide up to six months of business advice and mentorship to an entrepreneur selected from among the participants in each of the four events.

Read the full State Department media note.

Staff contact: Shaun Donnelly

More on USCIB Membership

Member Staff News: Help Us Keep USCIB’s Member Base Growing

USCIB’s membership is growing!  This year, more than ever, we owe our success to USCIB’s volunteer leadership – our current members – who have worked hard to open doors and tell their peers about the benefits of a USCIB membership.  Our 2012 membership campaign, led by USCIB’s Executive Committee and many key members, has resulted in the addition of 21 new members in the first half of 2012 – the most new members in the first six months of any year since 2005.

While that’s great news, now is not the time to sit back.  Competition for membership dollars is at an all-time high, and we need your help to tell the USCIB story to as many prospects as we can.

If you have a contact at a company that could benefit from USCIB membership, here are three simple steps you can take to get the ball rolling:

  1. E-mail or call with testimonial support on the value USCIB brings to your organization.
  2. Invite them to join you at a committee meeting as an observer to see how the process works first-hand.
  3. Offer them a one-year complimentary subscription to International Business.

Then be sure to let us know.  When you reach out, you’ll be helping to enrich your own membership at USCIB by adding more voices to support action on issues that are important to your company.  For more information on how you can get involved, contact me at ashapiro@uscinb.org, or Member Services Director Alison Hoiem at ahoiem@uscib.org. You’ll be glad you did.

Rob Mulligan
Rob Mulligan

Mulligan to Help Lead BIAC Trade Committee

USCIB Senior Vice President Rob Mulligan has been appointed by the BIAC (Business & Industry Advisory Committee to the OECD) Executive Board as vice chair of the BIAC Trade Committee.  Rob, who heads USCIB’s Washington, D.C. office, together with Committee Chair Cliff Sosnow and Vice Chair Oliver Wieck, will help guide BIAC’s work on trade, which is currently focused on trade and jobs, global value chains, services trade, export restrictions, non-tariff measures and state-owned enterprises.

New USCIB Members

We are delighted to welcome the following companies and organizations as the latest additions to USCIB’s diverse membership:

DirecTV Latin America

Dickstein Shapiro LLP

McDermott Will & Emery LLP

McKenna Long & Aldridge LLP

WeiserMazars LLP

To learn more about how USCIB membership can benefit your organization, contact Alison Hoiem (202-682-1291 or ahoiem@uscib.org).

Member Staff News: New Chair for Trade and Investment Committee

Rick Johnston
Rick Johnston

Charles R. (Rick) Johnston, director and senior vice president for international government affairs with Citi, is the new chair of USCIB’s Trade and Investment Committee, which coordinates business advocacy among USCIB’s hundreds of member companies, advises the U.S. government on key trade and investment matters, and drives broader international support for open markets.  “We are very excited that Rick Johnston has agreed to lead USCIB’s trade and investment policy work,” said USCIB President and CEO Peter M. Robinson.  “He brings strong leadership and a truly global perspective.”

Anthony Barone
Anthony Barone

The International Chamber of Commerce (ICC) has elevated Anthony Barone, director of global logistics policy at Pfizer, to the chairmanship of its Committee on Customs and Trade Regulations. Having served a year as vice chair, Barone is set to advance the committee’s work program, which focuses on simplifying and harmonizing customs policies and procedures so as to overcome barriers to trade.

 

Stephen Canner
Stephen Canner

At a May reception in Washington, D.C., USCIB members and staff bade farewell and gave a hearty “thank you” to Stephen Canner, who retired after 17 years of service in our Washington office.  Coming to us following a long and distinguished career at the U.S. Treasury, Steve served as USCIB’s vice president for investment and financial services, and more recently as senior advisor. His first-rate track record of advocacy on behalf of U.S. business resulted in a number of important achievements and helped to elevate investment policy to an equal footing with trade policy in terms of its importance to growth, jobs and development. Steve recently completed a term as chair of BIAC’s investment committee, further underscoring his lasting influence on our policy work and that of our affiliates. An accomplished sailor who often treated fellow USCIB staffers to a day out on the Chesapeake, Steve brought good humor and boundless energy – not to mention keen insight – to his work.  We wish him and his wife Sharon much happiness and happy sailing.

New USCIB Members

We are delighted to welcome the following companies and organizations as the latest additions to USCIB’s diverse membership:

Office Depot
Cravath, Swaine & Moore LLP
Frankfurt Kurnit Klien & Selz PC
Jackson Lewis LLP
Patton Boggs

To learn more about how USCIB membership can benefit your organization, contact Alison Hoiem (202-682-1291 or ahoiem@uscib.org).

Member and Staff News: USCIB’s Greene Tapped for State Department Advisory Panel

Adam Greene
Adam Greene

USCIB Staff News: Adam Greene, USCIB’s vice president for labor and corporate responsibility, has been named to a State Department advisory body on the OECD Guidelines for Multinational Enterprises. Joining Adam on the panel is Clifford Henry, associate director of corporate sustainable development with Procter & Gamble and chair of USCIB’s Corporate Responsibility Committee. The OECD Guidelines are voluntary recommendations from governments to multinational enterprises on responsible conduct in such areas as human rights, labor, environment, and corruption. They are the only multilateral, comprehensive code of conduct, endorsed by 43 national governments. The new panel will advise the U.S. National Contact Point, a State Department official who leads the United States work under the Guidelines. For more information, please visit www.state.gov/usncp.

Jason Cox has joined USCIB as a foreign claims examiner for our ATA Carnet department. Jason will issue Carnets along with three other Foreign Claims Examiners. He is a recent graduate from the University of Maryland. Alexandra Akerly is the new executive assistant in the ICC International Court of Arbitration’s North American offices, headquartered at USCIB. She graduated from Mount Holyoke College and worked at the office of Rep. Richard Neal of Massachusetts.

New USCIB Members

We are delighted to welcome the following companies and organizations as our newest members:

American River International
Apple Inc.
The Clorox Company
Comcast Corporation
Energy Transportation Group, Inc.
Grant Thornton International Ltd.
International Trade Counsellors
Limited Brands, Inc.

To find out how your organization can benefit from joining USCIB, contact Alison Hoiem, manager of member services, at 202-682-1291 or ahoiem@uscib.org.

Join USCIB

Why You Should Consider Joining USCIB

People spend their time and money on things they value.  In business, the same holds true – owners and executives want to know, “How will it benefit me and my organization?”  Today, the most critical business risks on a global scale are concentrated in the areas of regulations and compliance.  At USCIB, our reputation as the leader in global regulatory diplomacy for predictable rules and regulations under which business can plan, invest and innovate has made us a “must have” partner for American business interests since 1945. Read more.

Our members shape the agenda.

You’ll be part of a diverse membership drawn from a broad range of industry sectors representing the top ranks of American business and service companies, leading professional service firms as well as national industry associations where you will work with your peers to develop consensus positions on the issues affecting your business interests globally. Because we are multi-sectoral, our consensus position carries more weight with policymakers.

Our voice is strong and effective.

You’ll gain unparalleled access and influence advocating for your priorities with policymakers inside the national and international regulatory agencies and organizations where USCIB is recognized as a credible, non-partisan, pro-trade advocate.  Read more.

Our network is global.

You’ll have a seat at the table where policies that become accepted guidelines for business around the world are debated through USCIB’s affiliation with the world’s three largest business organizations: the International Chamber of Commerce (ICC), the Business and Industry Advisory Committee (BIAC) to the OECD and the International Organization of Employers.  Read more

Our policy staff is exceptional.

USCIB’s policy team in New York and Washington, D.C. provides business-critical information and insight on more than 30 international issue areas to support policy committees, chaired by leading corporate executives. Their ability to monitor developments and act as an early warning system on the regulatory front around the globe is greater than any one company can do on its own.  USCIB members utilize our committee structure and affiliations with the major global business organizations to develop contacts with business and government leaders at home and around the world.  Read more.

Our coverage is worldwide.

You’ll be able to cover the waterfront of forums and events here and abroad on a wide range of issues affecting your business in the areas of energy and environment, human rights and corporate social responsibility, tax, information technologies, trade, investment, financial services, customs, intellectual property, China and APEC that no one company can do on its own  – large or small. Read more.

Our international trade services are unique.

You’ll have access to USCIB’s array of products, tools, solutions and information specifically designed to help make international business endeavors more successful and efficient.  Read more.

Who Should Join?

  • U.S. and foreign corporations with operations in the U.S., law firms, consulting firms, industry associations and chambers of commerce.
  • Sole legal practitioners wishing to take part in ICC arbitration and dispute resolution activities.
  • Chambers of Commerce at the state or local level wishing to access ICC’s World Chambers Federation, a network of more than 10,000 chambers of commerce worldwide.

What are the dues?

Dues are paid annually and are determined using a formula that calculates domestic and international revenues to determine a fair level for each member on an individual basis in consultation with our membership department.  Chambers of Commerce and sole legal practitioners may join for $500 annually.

How can I learn more?

Please contact Alison Hoiem, Director Member Services at ahoiem@uscib.org

Membership Testimonials

“I want to thank all of you who are active members of USCIB for your commitment to innovation and open markets and the kind of partnership I think we have to bring America back  economically and ultimately socially and politically. “

Former U.S. President William Jefferson Clinton, 2011

“We need to come together and that’s exactly what USCIB is helping us to do – bring stakeholders together to tackle the toughest challenges”

Harold McGraw III, Chairman Emeritus, McGraw-Hill Financial; Chair, USCIB

“USCIB has a very strong global presence.  It’s a very strong voice for business and that global platform is going to drive the changes we need. That’s where business, public and private, meet and USCIB is right at the center”.

Mikael Hagstrom, EVP, EMA and Asia Pacific, SAS Institute; Member, USCIB Executive Board

“One challenge we face is delivering seamless service to our clients all over the world, mostly on the regulatory front.  USCIB is The premiere organization dealing with regulatory problems around the world, particuarly through its affiliates. It’s an international platform where we can get together with companies that have similar issues and address them collectively with governments around the world. There’s nothing else like it!

Charles P. Heeter, Managing Principal, Global Public Policy, Deloitte Touche Tohmatsu; Member, USCIB, Executive Board; Chair, BIAC

“USCIB gives us entrée to places where guidance is being developed on related to how new technologies and new business models are going to be treated as well as an ability to talk to the people who are policymakers in this space so we can build coalitions and consensus with industry and also across multi-stakeholder communities including academia and civil society”.

Joseph Alhadeff, VP and Chief Privacy Strategist, Oracle Corporation; Member, USCIB Executive Board; Vice-Chair, USCIB ICT Committee.

“The U.S. can embrace the realities of the global economy and seize its opportunities. Or we can resist it.  That’s not a choice. That is why the work of USCIB continues to be so vitally important.  Because the issues you promote, the global advocacy you undertake, all centers around the same basic tenet: that the United States can thrive in the era of globalization”.

Andrew N. Liveris, Chair & CEO, The Dow Chemical Company; Member and Recipient, 2011 USCIB International Leadership Award

Join us.

Join USCIB New Version

Why You Should Consider Joining USCIB

The most critical business risks on a global scale are concentrated in the areas of regulations and compliance.   At USCIB, our reputation as a pro-trade, pro-business organization that leads the way in ensuring clear, predictable rules and regulations under which business can plan, invest and innovate has made us a “must have” partner for American business interests since 1945. https://uscib.org/uscib-at-a-glance-ud-2410  (link to USCIB At A Glance)New)

Today, our members are drawn from the top ranks of American business and service companies, smaller firms with significant business overseas, leading professional service firms as well as national industry associations representing a broad range of industry sectors and boasting business operations in nearly every country on earth.( Link from members to  https://uscib.org/board-of-directors-ud-745)

 

They join USCIB for many reasons.

They value our ability to be heard in the halls of Congress and in the Executive branch of the U.S. government where USCIB is respected as an independent and trusted proponent for American business. (Link to DC Update – where is it? )

They need our global platform to have their voice heard at the world’s three largest business organizations where policy is debated that becomes accepted guidelines for business around the world.  They need us because USCIB is the only U.S. business group formally recognized to speak for American business inside those three organizations:  the International Chamber of Commerce (ICC), the Business and Industry Advisory Committee (BIAC) to the OECD and the International Organization of Employers. https://uscib.org/global-network-ud-700 link to affiliates screen

They use us to monitor and cover the waterfront of forums and events here and abroad on a wide range of issues affecting energy and environment, human rights and corporate social responsibility, tax, information technologies, trade, investment, financial services, customs, intellectual property, China and APEC that no one company can do on its own  – large or small.  And they appreciate our ability to filter vast amounts of critical business intelligence into meaningful action.   https://uscib.org/whats-new-at-uscib-ud-1826 (link to What’s New)

They work with us to leverage their own public affairs and government relations through access to our policy experts and the work done through our committee process where they can bring issues to the table and have consensus positions developed that go on to form the basis for our advocacy.   https://uscib.org/policy-committees-ud-806  link to list of committees)

And they may value our business services such as ATA Carnet, a customs document saving them time and money on temporary exports and imports through our member-bond program. https://uscib.org/ata-carnet-export-service-ud-718 (link to ATA Carnet)

Whatever the reason, USCIB members have access to a broad array of information, access, advocacy and services found nowhere else.

How Can I Join?

USCIB membership is open to corporations, law firms, consulting firms and industry associations.  Once you join USCIB, your company or organization is entitled to take full advantage of our resources and services.  You may assign as many executives as you wish to USCIB committees, working groups and task forces.   Dues are determined using a formula that calculates domestic and international revenues to determine a fair level for each member on an individual basis in consultation with our membership department.

Limited memberships are available for chambers of commerce and sole legal practitioners.  Chambers of Commerce at the state or local level join USCIB to access ICC’s World Chambers Federation, a network of more than 10,000 chambers of commerce worldwide.

Sole legal practitioners wishing to take part in ICC arbitration and dispute resolution activities may join the Sole Practitioners Program.

Annual dues for both categories of membership start at $500 USD.

For more information, please contact Alison Hoiem, Manager Member Services at XXXXXXXXX.

View list of USCIB members

Visit the membership area of our web site to learn more

Case Study 2: Uncertainty in International Tax Policy

The Problem

Uncertainty in the application of international tax rules can act as a barrier to the expansion of cross-border trade and investment. When the OECD Guidelines on Multinational Enterprises were being revised, the chapter on tax contained vague language on “complying with the spirit of the law” that few people had focused on.  USCIB alerted its members to the risks associated with language that created an environment without transparency or certainty which would place companies at the mercy of government’s interpretation of what constituted a violation of the “spirit” without regard to the intention of their legislatures.

 

USCIB Speaks Out

At the OECD

USCIB, working with its tax committee, organized a campaign to raise the issue inside the OECD on the need to revise the language in the tax chapter.  They drafted new language to define the “spirit of the law” and advocated their position directly to the OECD as to why the language must be revised.

At the U.S. Department of State

USCIB brought the U.S. Department of State into the discussion and urged them to stand their ground based on the negative impact the original language could have on U.S. companies.  USCIB continued to coordinate with the OECD and the State Department to press for new language and ensure approval.

 

Outcome

As a direct result of USCIB’s efforts, the final language adopted stated that complying with the “spirit of the law” means discerning and following the intention of the legislature. And that the intention of the legislature is determined based on the statutory language and relevant, contemporaneous legislative history.  This prevents tax authorities from asserting that legitimate tax planning violates the “spirit of the law” and is viewed as a major victory for U.S. companies.

*(The Guidelines are recommendations addressed by governments to multinational enterprises operating in or from adhering countries. They provide voluntary principles and standards for responsible business conduct in areas such as employment and industrial relations, human rights, environment, information disclosure, combating bribery, consumer interests, science and technology, competition, and taxation)

Join us.

Case Study 1: Business and Supply Chain Linkages

The Problem

Efforts by government to force companies to monitor all levels of their supply chains are impractical and do not account for social and political injustices.

Business has responded by proactively establishing privatized labor inspection systems to monitor supply chains to ensure compliance with codes of conduct pass but past the first tier (direct suppliers), efforts are impractical.

In Uzbekistan, it is reported that during harvest cotton is picked by minors, a government supported action that forcibly withdraws children from school to work the fields. Despite efforts by business to boycott the purchase of Uzbek cotton on the world market, it remains a purchased commodity by unreputable suppliers.  Once purchased the tainted cotton makes its way into the supply chain of many final products.

 

USCIB Speaks Out

At the United Nations

USCIB worked with its members to collaborate with John Ruggie, UN special representative to ensure that U.S business needs be represented within the adopted “UN Guiding Principles for Business and Human Rights resulting in principles being accepted that recognize governments need to work in conjunction with business to find ways in which to address the complicated challenges facing multinational companies, not to put the burden solely on business community.

At the OECD

When revisions to the OECD Guidelines on Multinational Enterprises threatened to change the nature of the guidelines by holding companies accountable for all injustices found within their supply chains, USCIB, working in conjunction with BIAC, successfully advocated for consistency with the UN Principles which reinforce the standard that suppliers are responsible for their own impacts and the burden cannot be transferred.

At the ILO and IOE

USCIB Business efforts to address human rights issues including forced labor, child labor and human trafficking in labor markets provide short term relief when weak governments fail to enforce human rights laws already on the books.  In support of the business community, USCIB through the IOE and ILO have supported cases brought against the Uzbek government with regards to the forced child labor cases occurring annually during harvest season.  The ILO commissioned a group to observe and report on the injustices within the Uzbek labor system.

Join us.