Competitiveness and Innovation Archives

As COP26 Concludes, USCIB Calls for a New Inclusive and More Ambitious Approach

Published on November 16, 2021

While COP26 came dangerously close to a “Copenhagen” breakdown over a lack of trust in the process due to last minute changes in the final text, the meeting concluded on November 13 at nearly midnight as approximately 200 countries agreed to the “Glasgow Climate Pact,” reports USCIB Senior Vice President Norine Kennedy.

According to Kennedy, throughout the final week of the intense two-week session, views had remained divided on substantive issues, most of which linked in some way to unmet finance needs, and also concerned gaps in pledged greenhouse gas reductions compared to scientific assessments of actions necessary to limit dangerous warming.

Following recent Intergovernmental Panel on Climate Change (IPCC) and United Nations Environment Programme (UNEP) reports of current national action pledges, the pressure was on to keep “1.5°C alive” and to finalize the outstanding elements – notably “Article 6” on carbon markets – of the Rulebook (the practical guidance for implementing The Paris Agreement).

“This meeting took place under numerous challenging circumstances,” added Kennedy. It was the first, major UN in-person meeting during the pandemic, held under stringent public health measures which included daily testing for all participants. COP26 was also taking place during a period of economic headwinds and uncertainty coupled with, higher energy prices. Outspoken climate campaigners inside the meeting areas and protesters outside, along with a higher-than-expected participation of more than thirty-thousand participants kept the pressure on. On the other hand, a record number of business participants on hand, including during the World Leaders Climate Summit, which comprised the first three days of the COP, signaled clear business support for ambitious climate action.

USCIB staff and members organized two U.S. business events in the final week:

  • A virtual USCIB side-event on “Infrastructure, Innovation and Investment for a Sustainable and Resilient Recovery,” featuring speakers from Duke University, General Motors and Generate Capital and
  • A Major Economies Business Forum (BizMEF) side-event on where business can make a running start to advance economy-wide action on climate change, in preparation for COP27. Speakers from Business at OECD (BIAC), the International Organization of Employers (IOE), the Mohamed VI Foundation for Environmental Protection and WorldSteel shared perspectives on converging employment, trade and energy transition policies, working with the private sector.

“In spite of unparalleled support by U.S. companies for an ambitious outcome, working with the Administration, we were disappointed by scant mention of business in the Glasgow conclusions,” stated Kennedy. “The International Chamber of Commerce (ICC) served as the focal point for business at COP26, debuting new ICC papers on carbon pricing and on sustainable trade finance.”

Looking ahead to the next major UN climate meeting in Egypt in 2022, several thorny issues remain, including lingering dissatisfaction with lack of adequate finance and questions about whether high-emitting countries (such as U.S., China, India) will be able to offer enhanced pledges of emissions reductions. USCIB members will be preparing recommendations to inform the UN “Global Stocktake,” which will form a basis for future action, and continue to advocate for economy-wide approaches inside and outside the UNFCCC that advance energy access and security and substantively engage U.S. business knowhow and innovation.

USCIB’s COP26 Concluding Statement can be found here.

USCIB Leads Effort in Letter to USTR Tai on Reforming WTO Dispute Settlement System

Published on November 10, 2021

USCIB led an effort along with nearly a dozen other leading business and trade associations to send a letter to United States Trade Representative Katherine Tai regading the upcoming World Trade Organization (WTO) ministerial and in reforming its dispute settlement system.

The letter welcomed USTR Tai’s recent remarks affirming the U.S. commitment to the WTO and to successful outcomes at the upcoming 12th Ministerial Conference (MC12).

The letter stated: We agree that the WTO can fulfill the promise of the Marrakesh Agreement by supporting market-based principles, promoting inclusive growth and addressing the challenges of today and tomorrow.

The letter also emphasized that the U.S. and global economy, and the livelihoods of workers around the world, depend on an effective WTO. A level multilateral playing field helps American manufacturers, services suppliers, innovators and farmers – large and small – by enabling workers and communities to compete more fairly in markets around the globe. Since 1948, under the General Agreement on Tariffs and Trade and the WTO, world trade increased forty-fold in real terms to more than twenty-five trillion dollars today. More than thirty percent of U.S. GDP today is derived from trade, and over forty million American jobs – one in five – depend on trade and trade lowers costs for American families.

Regarding reform, the letter emphasized: “building off MC12, the WTO needs reform to meet the demands of today by modernizing its agreements and ensuring members follow existing rules and commitments. We support advancing a comprehensive WTO reform agenda that tackles dispute settlement, special and differential treatment, distortive non-market industrial subsidies, and state-owned enterprises. Reforms should also cover emerging services and technologies, enhance inclusivity, and help harness trade to address climate change. A modern WTO should expand plurilateral pathways to trade liberalization, update institutional rules and procedures, improve monitoring, promote greater transparency through notifications, and involve more stakeholders.”

The full letter can be viewed directly below.

Organizations leading the effort included USCIB, Business Roundtable, the U.S. Chamber of Commerce, NFTC, American Chemistry Council, the American Farm Bureau Federation, the American Property Casualty Insurance Association, the Business Software Alliance and the Coalition for Services Industries.

Dear Ambassador Tai:

We welcome your recent remarks affirming the U.S. commitment to the World Trade Organization (WTO) and to successful outcomes at the upcoming 12th Ministerial Conference (MC12). We agree that the WTO can fulfill the promise of the Marrakesh Agreement by supporting market-based principles, promoting inclusive growth and addressing the challenges of today and tomorrow.

The U.S. and global economy, and the livelihoods of workers around the world, depend on an effective WTO. A level multilateral playing field helps American manufacturers, services suppliers, innovators and farmers – large and small – by enabling workers and communities to compete more fairly in markets around the globe. Since 1948, under the General Agreement on Tariffs and Trade and the WTO, world trade increased 40-fold in real terms to more than $25 trillion today. More than 30 percent of U.S. GDP today is derived from trade, and over 40 million American jobs – 1 in 5 – depend on trade and trade lowers costs for American families.

A successful MC12 will require urgent U.S. leadership to secure concrete deliverables that advance U.S. interests and competitiveness in areas such as fisheries, domestic regulations, agriculture, e-commerce, trade facilitation and pandemic response. Such results will demonstrate that the WTO can produce meaningful outcomes and can set a foundation for future reforms and commitments. Outcomes that weaken WTO rules, however, such as by undermining longstanding disciplines on subsidies, electronic transmissions or intellectual property, would instead weaken core WTO principles and commitments as well as support for the institution.

Building off MC12, the WTO needs reform to meet the demands of today by modernizing its agreements and ensuring members follow existing rules and commitments. We support advancing a comprehensive WTO reform agenda that tackles dispute settlement, special and differential treatment, distortive non-market industrial subsidies, and state-owned enterprises. Reforms should also cover emerging services and technologies, enhance inclusivity, and help harness trade to address climate change. A modern WTO should expand plurilateral pathways to trade liberalization, update institutional rules and procedures, improve monitoring, promote greater transparency through notifications, and involve more stakeholders.

WTO dispute settlement holds parties to their commitments. Reforming the WTO dispute settlement system will require the United States to offer concrete and detailed proposals that address longstanding process and appellate body overreach concerns to enable the system to resolve disputes efficiently and effectively. The United States has successfully used WTO dispute settlement to challenge WTO violations without resorting to unilateral measures that draw retaliation and tit-for-tat escalation. Reforming and restoring the system will support U.S. interests and can hold WTO members accountable to their commitments.

The Administration can best support the international rules-based system and the WTO by making concrete proposals and partnering with allies who share market-based trade liberalization, modernization, and reform principles. Moreover, scheduling more frequent Trade Ministers meetings could help overcome impasses, support reforms and foster progress. We will continue to work with you and your team to advance our shared goals for the WTO. U.S. companies, workers, and families will all benefit when the WTO achieves what it was established to do.

Sincerely,

American Chemistry Council

American Farm Bureau Federation

American Property Casualty Insurance Association

Business Roundtable

Business Software Alliance

Coalition for Services Industries

National Foreign Trade Council

U.S. Chamber of Commerce

U.S. Council for International Business

UN Climate Agreement in the Balance: Role of Business in Innovation and Investment

Published on November 10, 2021
Virtual BizMEF Dialogue at COP-26

As the second week of the United Nations Conference of the Parties (COP26) was underway in Glasgow, USCIB and its members continued to make the case for outcomes at a critical turning point to enable business investment, energy security and ambitious and cost-effective climate action.

According to USCIB Senior Vice President Norine Kennedy, who is on the ground in Glasgow to lead the USCIB delegation, governments are now negotiating the final crunch issues that include: carbon instruments and markets and completing the Paris Rulebook; increasing finance for developing countries, particularly for adaptation, as well as loss and damage; and transparency and credibility of pledge implementation.

“The UK government serves as the President of the COP26 meeting, and is now leading negotiations to reach conclusions on these and other remaining political matters, with involvement of ministers to break any logjams,” said Kennedy.

Last Friday, November 5, USCIB joined the Major Economies Business Forum (BizMEF) in convening a virtual Business Dialogue at COP26, which included White House, government, the UN, the World Trade Organization (WTO), the Intergovernmental Panel on Climate Change (IPCC) and business participants. The meeting included thematic sessions on transparency and the global stock-take, involving business for ambition, as well as trade, transition and recovery.

USCIB President and CEO Peter Robinson opened the BizMEF meeting, stating that the UN climate process should evolve to a more practical and inclusive multilateralism in which business is directly and substantively involved.

BizMEF virtual dialogue participants also heard presentations on the business implications and WTO viability of border carbon adjustments proposals, and the ways in which business can contribute to reviews of the effectiveness of overall government implementation of climate pledges – a process that sets the stage for new targets under the Paris Agreement.

Building on the momentum of the BizMEF event, USCIB then held a virtual side event the following Monday, November 8, titled “Mobilize: Infrastructure, Innovation and Investment for a Sustainable Recovery,” which was part of the International Chamber of Commerce’s (ICC) virtual COP26 Conference, “Making Climate Action Everyone’s Business.”  Presenters included:

  • Elizabeth Losos, Duke University Nicholas School of Environment
  • Scott Jacobs, CEO Generate Capital and
  • Kristen Siemens, Chief Sustainability Officer, General Motors

Kennedy led the roundtable discussion on how to create enabling frameworks for “shovel worthy” projects with due attention to responsible business behavior, multi-sectoral climate considerations and capacity building.

According to Kennedy, in spite of COVID restrictions, COP26 has become the largest climate meeting in UN history, beginning with a three-day World Leaders Summit, where President Joe Biden and over a dozen Administration Cabinet members were in attendance, alongside other heads of state and CEOs.

CEOs of USCIB and Novozymes Share Spotlight at COP26 Side-Event at US Center

Published on November 5, 2021

USCIB President and CEO Peter Robinson joined Novozymes CEO Ester Baiget at a U.S. National Pavilion, known as the U.S. Center, at a side-event on “Tech for Net-Zero,” during the United Nations Conference of the Parties (COP26) on November 2 in Glasgow, Scotland. Baiget serves as USCIB Trustee and USCIB Sustainability Champion.

The event was co-organized by USCIB and the Business Council for Sustainable Energy (BCSE). U.S. Assistant Secretary of State for Oceans, Environment, and Science Monica Medina joined Robinson to open the event.  BCSE President Lisa Jacobson moderated a panel of private sector experts including Baiget, Patrick Flynn of Salesforce Amy Hadden of Schneider Electric, and Andrew Zoly of Planet Inc.

“We see COP26 as the opportunity to launch a new chapter in the UN Framework Convention on Climate Change and its Paris Agreement, a transformative next step in the journey of international cooperation to global net zero,” said Robinson in his opening remarks. “American companies are committed to continuing to deploy innovation, investment and nature-based solutions towards a sustainable resilient recovery – and USCIB is leaning in on this, reflecting over twenty-five years of representing U.S. business in the UNFCCC.”

Medina opened her remarks with an emphasis on the role of the private sector. “Companies and investors and entrepreneurs around the world have a crucial role to play in bringing about the climate solutions that we need today and tomorrow,” said Medina. “It’s amazing that tech companies and the private sector are making such big commitments here in Glasgow. Technology and innovation are the way we elevate ambition, and that ambition is the thread that binds this conference together.

“Yes, we need solutions, and that’s where Novozymes comes in,” said Baiget. “At Novozymes, we use science to provide answers that respond to society’s most pressing needs. We bring, through nature and through a lot of science and technology, the alternatives and the solutions that lead to CO2 emissions reduction, lower waste, lower chemical use, lower energy intensity, and healthier products for our customers.”

The full video from the event is here: U.S. Center COP26 – Tech for Net-Zero – YouTube.

Wanner Receives ‘2021 Community Recognition’ for Leadership Role in ICANN

Published on November 3, 2021
Barbara Wanner at an ICANN meeting in 2017

USCIB Vice President for ICT Policy Barbara Wanner, who has served as a Business Constituency on ICANN since 2013, has received a 2021 Community Recognition for her dedication to ICANN’s mission and for their invaluable contributions. Wanner is among forty-nine other community leaders to have received a Community Recognition this year.

“The ICANN Board, community, and organization are grateful for the community’s tireless efforts and cooperative spirit shown over the last year,” said David Olive, ICANN Senior Vice President for Policy Development Support and Managing Director for Washington DC. “The collaborative contributions that community members have made through our Supporting Organizations, Advisory Committees, and other groups are central to supporting ICANN’s mission. ICANN org is proud to help facilitate this work toward ensuring the security, stability, and resilience of the Internet.”

“I am honored to have received this recognition from ICANN,” said Wanner. “USCIB’s role in ICANN ensures that policies governing management of the domain name system (DNS) continue to uphold safe, secure, sustainable and resilient operation of the DNS system and the functionality of the Internet. I look forward to continuing to work with my peers and colleagues at ICANN, along with USCIB members to furthering this crucial goal.”

The ICANN Board passed a formal resolution to recognize community leaders.

USCIB Leads Business Voices at UNCTAD’s World Investment Forum

Published on October 20, 2021

USCIB again provided international business community leadership at the UN Conference on Trade and Development (UNCTAD)’s World Investment Forum (WIF), a summit level meeting held virtually this year from UNCTAD’s Geneva headquarters. USCIB President/CEO Peter Robinson was a private sector speaker at one of the Summit leaders’ plenary panels, reprising a lead role he had taken at two earlier UNCTAD WIF sessions. Shaun Donnelly, a USCIB Senior Advisor, led the business panelists at the annual UNCTAD high-level Conference on International Investment Agreements (IIAs). Donnelly has participated, in person or virtually in Geneva in the last six UNCTAD IIA sessions. Business is often underrepresented at UNCTAD meetings, which tend to attract more participation from government officials, NGOs and academic representatives. USCIB consistently steps forward to ensure that business concerns and priorities are on the table.

In their interventions, both Robinson and Donnelly emphasized the importance of international private investment in driving global economic recovery, growth, and job creation and in achieving the UN Sustainable Development Goals (SDGs). It is imperative to business that investment decisions are backed by strong and enforceable international investment agreements (IIAs). Some foreign government representatives seem intent on weakening, even eliminating important “Investor-State Dispute Settlement” arbitration procedures, which can protect foreign investors from arbitrary and discriminatory treatment by host governments.

“We thought it was important to step forward again at this year’s World Investment Forum to ensure business perspectives were represented,” said Robinson. “I think we at USCIB have developed a good relationship with the leadership at UNCTAD and have helped to emphasize the importance of including business voices in their meetings. Investment is such an important issue as the world struggles for economic recovery, growth, good jobs and progress toward the UN SDGs. And forward progress will depend on strong multi-stakeholder collaboration, with UNCTAD being a key organization in bringing all relevant parties together. I also appreciated the opportunity to connect with UNCTAD’s new Secretary General Rebeca Grynspan, former Vice-President of Costa Rica.”

USCIB international partners served as panelists at the WIF, delivering similar messages. International Chamber of Commerce Secretary General John Denton spoke at the opening Summit session and Winand Quaedvlieg, a senior official from our Dutch counterpart national committee, VNO, and Chair of the Business at OECD (BIAC) Investment Committee, joined Donnelly on the important IIA panel session.

UNCTAD’s World Investment Forum continues on line virtually for the rest of the week. We will monitor sessions for important developments.

USCIB Acknowledges the G20 Finance Ministers Endorsement of the October Two-Pillar Global Tax Proposals

Published on October 14, 2021

Washington D.C., October 13, 2021—The United States Council for International Business (USCIB) notes the endorsement by the G-20 Finance Ministers today of the OECD/G20 Inclusive Framework landmark deal announced on October 8. The deal, agreed by 136 countries, including the US, establishes a new framework for international tax reform represented by two distinct proposals or pillars. The two-pillar solution will be delivered to the G20 Leaders’ Summit in Rome at the end of the month while the intensive work on the design and drafting of the numerous parts of the deal continues into 2022.

“The OECD has once again reached a significant milestone on schedule and was able to add a handful of key countries into the fold of the deal agreement since July,” said USCIB Vice President and International Tax Counsel Rick Minor.

The October deal terms include a long list of technical work that must still be completed in relatively short order according to the OECD timeline. USCIB Tax Committee company members are positioned to directly advise the OECD drafting teams through its membership in the Business at OECD Taxation Committee. According to Minor, “putting aside the ambitious timelines through 2022, our members will be focused on the development of the design and details for key aspects of each of the pillars. With respect to Pillar One, this includes, but is not limited to, dispute prevention and resolution mechanisms, the tax liability rules, revenue sourcing, the marketing and distribution safe harbor and so-called Amount B. We are also mindful of the fact that the drafting of the Pillar Two rules is on a parallel path with the numerous GILTI deliberations in Congress this fall which arguably puts pressure on that process if there is no coordination in review.” USCIB will remain engaged in the OECD rule design process through Business at OECD and directly, through the appropriate engagement.

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. As the U.S. affiliate of the International Chamber of Commerce (ICC), the International Organization of Employers (IOE) and Business at OECD (BIAC), USCIB provides business views to policy makers and regulatory authorities worldwide and works to facilitate international trade and investment. More at www.uscib.org.

Contact:

Rick Minor

VP and International Tax Counsel

rminor@uscib.org

Robinson Joins Business, Health and Employer Experts at IOE Event on COVID-19: What Employers Need to Know on Vaccinations and Prevention

Published on October 11, 2021
Left to right: Roberto Suarez Santos, Guy Ryder, Susan Hopgood, Peter Robinson

As employers remain on the frontline of the pandemic response, caught between calls to mandate vaccination in the workplace and demands to respect the decisions on vaccination of the individual, the International Organization of Employers (IOE) hosted a timely dialogue, “COVID-19: What Employers Need to Know on Vaccinations and Prevention.”

The October 5 event brought together foremost experts from the health, employer and business fields, including World Health Organization (WHO) Chief Scientist Dr. Soumya Swaminathan, ILO Director General Guy Ryder, IOE President Roberto Suarez Santos and USCIB President and CEO Peter Robinson, among others, to discuss this delicate balance, as well as the increasingly complicated situation in developing countries around access to vaccines, in addition to vaccine hesitancy. Panelists focused on a central question: how can employer organizations help companies navigate all these complex and politically charged issues?

Swaminathan outlined the stark realities of COVID-19 and the continued challenges of distribution and access to vaccines worldwide, while DG Ryder acknowledged some of the key dilemmas facing society and employers: in addition to the inequality in distribution and access, the question of mandates and of privacy, for example, is an employer empowered to know the vaccine status of employees? As an employer representative, Robinson discussed the responsibility employers have in vaccine literacy and COVID response and recovery, particularly following the results of the Edelman Trust Barometer, which revealed that employers—not “Big Business” but employers in general—were felt by employees to be one of the most trusted messengers of information on Covid response.

“While there have been fears of a mass exodus of people quitting and not returning to work, preliminary results show that people are following suit—trusting their employer and government—and getting vaccinated and returning to work to protect health and liberty,” said Robinson. “Recent surveys show that the public supports employers who work to protect society by requiring vaccination as a condition of entry to work. This is in sync with global efforts supporting governments to provide equitable vaccination access so that no one gets left behind.”

Robinson also referenced The USCIB Foundation’s initiative “Business Partners to CONVINCE”, or “BP2C”, designed to encourage and support employers worldwide in making the case for vaccination.

“I would like to take the opportunity to express special thanks for the support of IOE, whose role is and will be especially critical given its extensive range of employer organization members particularly as vaccines become more available in developing countries,” added Robinson. “Looking ahead, as the debate on credentials, passports, verification schemes and other ideas advance, we continue to support efforts to strategically engage business and government bodies to effectively communicate to build vaccine confidence and help galvanize support for re-normalizing a COVID-protected world. We are hopeful for a robust recovery in 2022.  Yet, if we do not work together to advance vaccine access, literacy, and uptake globally, we could face barriers for building back better. We could hit the wall and fall short of vaccination goals. Yet, I remain convinced we can find a way with business, employers and the private sector helping to forge the way forward with our efforts such as this event and in collaboration with our social partners.”

Lowry Discusses Role of WTO in Digital Revolution of Agriculture at WTO Public Forum Event

Published on October 6, 2021

USCIB Senior Vice President for Innovation, Regulation and Trade Brian Lowry gave remarks at a World Trade Organization (WTO) Public Forum side-event on “Digital Services and Green Transition: A Promising Alliance that Needs an Incentive Multilateral Regulatory Framework.” The September 29th event, held in Geneva, was organized in partnership by USCIB, ICC France and Afed (the Association of French Large companies).

Lowry was joined by other prestigious speakers including the Permanent Representative of the Philippines to the WTO and Chairperson for the WTO Committee on Trade and Environment Ambassador Manuel Teehankee, Permanent Representative of Singapore to the WTO and Co-Chair of the Joint Initiative Statement (JIS) on e-commerce negotiating committee Ambassador Tan Hung Seng, the Deputy Director General of the WTO Jean-Marie Paugam and ICC’s Representative Director in Geneva Crispin Conroy.

Lowry discussed how digital tools can help mitigate risk and make farming more rewarding for all farmers—whether smallholders in developing countries or large-scale farms in the United States or Brazil.

“Digital farming can turn field, weather and agronomic data into insights that help address climate change and sustainable productivity,” said Lowry.

“However, this digital revolution does nothing if farmers do not have access to it. Whether it is the smallholder farmer in Africa or a large landowner in Argentina, the WTO can help by supporting market access for the technology and addressing data protection, the cross-boundary data interchange for both access and analysis, and the need for standards and disciplines for a carbon mechanism that promotes consistency and integrity,” added Lowry.

ICC Offers New Tool for SME’s to Measure Impacts of Business Operations on the Environment

Published on October 6, 2021

The International Chamber of Commerce (ICC) has done a soft launch of a new business tool on September 22, specifically tailored to Small-and Medium-Sized Enterprises (SMEs) called SME360X.

SME360X is a SaaS (Software as a Service) platform co-created by ICC and GIST that measures the impacts of business operations on the environment. There are many external risks that threaten the survival of businesses everywhere. A company’s factory location that was relatively risk-free when it was set up decades ago could now be facing extreme risks from stressed water resources and severe shifts in weather patterns. A ban on single use plastics could threaten the survival of a company. Community protests could lead to the shutdown of an industrial operation. SME360X will help its users identify the environmental risks that are most material to their business.

SME360X enables users to:

  • Measure, economically value and manage business impacts on nature and the environment.
  • Compare environmental performance with regional and sectoral peers and competitors.
  • Receive a single, understandable environmental impact score (PIE Score).
  • Decide which improvement and abatement initiatives are most impactful.
  • Easily and affordably report on sustainability performance.
  • Obtain a Global Sustainability Certification from ICC.
  • Data belongs to you: highest level of security ensured using blockchain storage.

For more information on the tool and to obtain the tool, visit the ICC’s website.