Competitiveness and Innovation Archives

USCIB Priorities for the World Telecommunication Standardization Assembly

Published on February 25, 2020

Ahead of November’s World Telecommunication Standardization Assembly (WTSA-20) in Hyderabad, India, USCIB prepared priorities for the U.S. government delegation to pursue. The recommended priorities included avoiding premature regulation or standardization of emerging technologies to ensure future investments in markets all over the world, avoiding top-down mandates on internet protocols, and advocating for resolutions that bind the scope of study groups to the ITU Telecommunication Standardization Sector’s (ITU-T) telecommunication/ICTs remit.

“USCIB holds in high value the work of the ITU-T in the development of international standards that promote the interoperability of telecommunication networks. In recent years, however, the T-Sector’s workstream has expanded into areas in which we do not believe the ITU has the expertise or mandate,” said USCIB Vice President for ICT Policy Barbara Wanner. “The WTSA-20 presents a key opportunity to ensure that the ITU-T’s structure and work program remain firmly rooted in its technical telecommunication/ICT standardization core competency. USCIB is committed to working with the U.S. Government to identify opportunities for constructive engagement that helps to advance U.S. policy objectives.”

The letter also stressed that further expanding the WTSA’s work program beyond its proper remit would compromise the industry’s ability to address Internet governance-related issues and explore standards and best practices for emerging technologies that are more effectively addressed in existing multistakeholder policymaking and standards-setting bodies.

USCIB Urges US Participation in WTO’s Procurement Agreement

Published on February 18, 2020

USCIB joined over twenty industry associations in signing a letter to high-level government officials emphasizing the critical importance of continued U.S. participation in the World Trade Organization (WTO) Government Procurement Agreement (GPA). The letter was sent to United States Trade Representative Robert E. Lighthizer, Secretary of the Treasurer Steven T. Mnuchin, Secretary of Commerce Wilbur Ross, and National Economic Council Director Lawrence Kudlow.

The letter argues that the GPA provides benefits to the U.S. economy, businesses and workforce by empowering the United States to negotiate reciprocal terms under which GPA signatory countries open their government procurement markets to U.S. companies and commit to transparency and procedural protections that support the rule of law.

“The GPA is the only part of the WTO system that provides binding guarantees of the right to sell to foreign governments (which are not covered by other WTO disciplines). The GPA is also unique among WTO plurilateral agreements in that only the forty-seven current country signatories to the agreement benefit from and can enforce its binding commitments,” the letter stated.

Additionally, the letter warns that if the U.S. withdrew from the GPA, it could no longer negotiate the terms under which China could join the GPA. As a result, other GPA signatory countries would be less likely to demand comprehensive access to Chinese government procurement markets.

USCIB Supports Event on Gender Equality in Sciences, Education

Published on February 18, 2020

In celebration of the five years since the United Nations formally recognized the need to increase gender equality in the sciences to support implementation of the Sustainable Development Goals (SDGs), the Royal Academy of Sciences International Trust (RASIT), with co-sponsorship from USCIB and the International Chamber of Commerce (ICC), hosted the 5th International Day of Women and Girls in Science Assembly from February 11-12 at the UN headquarters in New York.

The event drew widespread support and interest from countries such as Hungary, Zambia, Montenegro, St. Kitts and Nevis and Portugal, as well as UN agencies, including the UN Conference on Trade and Development (UNCTAD), the World Intellectual Property Organization (WIPO) and the International Telecommunications Union (ITU). Academics, UN officials, ambassadors, royalty, young scientists and business representatives, including USCIB Assistant Policy and Program Manager Daniella Goncalves, joined the event to discuss the forum’s theme of driving investment in equality in science, technology and innovation in the digitalization era for inclusive green growth.

According to Goncalves, several young women, as young as eleven, made inspiring interventions, detailing their efforts to bring about equity through robotics and coding applications, use of emerging technology in agriculture and irrigation, medicine and more.

“Together, the accounts illustrated a pressing need for movement in the gender pay gap, skilling and access to research, while simultaneously displaying the work of the next generation of female scientists and technologists in solving these issues,” said Goncalves.

Lithuanian Business Delegation (ICC Lithuania) Visits USCIB

Published on February 11, 2020

The Lithuanian Business Confederation (LVK or ‘ICC Lithuania’) visited USCIB’s New York office on February 3 to meet with USCIB’s President and CEO Peter Robinson and other policy staff. LVK’s General Manager Andrius Nikitinas, Project Director Gabrielė Gaubienė and Senior Policy Advisor Ineta Rizgelė led the delegation of over twenty LVK member representatives.

With a membership base consisting mostly of Small and Medium Enterprises (SMEs), the Lithuanian companies and industries represented included architecture, residential and commercial design, solar panel manufacturing, mattresses, software for cargo transportation and food.

“We appreciated the opportunity to meet with our ICC Lithuania partners,” noted USCIB President and CEO Peter Robinson. “The meeting allowed us to better understand each other’s structures, policy priorities and target audiences.

 

 

Business at OECD Head Shares 2020 Policy Priorities With USCIB

Published on February 11, 2020
Business at OECD’s Russel Mills (left, center) with IOE’s Shea GoPaul and USCIB policy staff

Secretary General of Business at OECD (BIAC) Russel Mills visited USCIB’s Washington DC and New York offices the week of February 3 to update staff on Business at OECD and OECD priorities for the year.

Mills shared that environment, biodiversity, plastics and climate change issues are moving to the top of the agenda, however there will also be a mushrooming of digitization plans and digital economy work related to changing business models and digitally enabled companies. Mills also noted that policies around digital taxation and re-skilling will be on top of the agenda for both organizations.

“We really valued our time with Russel, which gave us an opportunity to touch base on our respective organizations’ policy priorities,” said USCIB President and CEO Peter Robinson. “USCIB looks forward to a productive year working with BIAC to help drive the work of the OECD.”

USCIB Supports Respect for Arbitration Awards in U.S. GSP Program

Published on February 3, 2020
USCIB Vice President Shaun Donnelly (left) and Chevron Supervising Counsel Andres Romero-Delmastro (right) testifying as panelists before the US Government’s GSP Subcommittee

USCIB went on the record at the January 30 Public Hearing of the USTR-led interagency Generalized System of Preferences (GSP) Subcommittee, supporting respect for the GSP eligibility criteria, specifically the need for “respecting and enforcing international arbitral awards.”  USCIB Vice President for Investment Policy Shaun Donnelly joined member company Chevron as the two business experts testifying on the specific issue of Ecuador’s continuing eligibility for GSP in light of the country’s very troubling record in a long-running major investment arbitration case filed by Chevron.

USCIB joined Chevron in recommending that, in light of Ecuador’s continuing refusal to enforce final arbitral awards by the panel, Ecuador’s access to GSP unilateral trade preferences should be suspended until they come into full compliance with those panel orders. According to Donnelly, after a senior official from the Ecuadorian Attorney General’s office presented the government’s case, a senior Chevron attorney detailed the long saga of Ecuadorian non-compliance. Donnelly then offered broader comments to the sub-committee on the important policy implications of Ecuador’s non-compliance and the importance of maintaining and enforcing the clear eligibility criteria laid out in the GSP statute. The Ecuador investment arbitration case was one of nine “country eligibility cases” on the agenda for public comments before the GSP subcommittee in its two-day meeting January 30-31.

“We at USCIB are strong supporters of the GSP program but it is not an entitlement for Ecuador or any other beneficiary developing countries” Donnelly explained.  “When a country refuses over many years to respect legitimate arbitral awards, in this case from an investment arbitral panel under the U.S.-Ecuador Bilateral Investment Treaty (BIT), the U.S. government’s patience must have a limit. Ecuador has clearly fallen short of the standards under the GSP statute. I think the detailed case presented by Chevron was compelling.”

Chevron and USCIB have been filing formal comments and testifying to the GSP sub-committee along these same lines regularly since 2012. USCIB has long been a leading voice in the U.S. and international business communities on the importance of foreign direct investment (FDI)  to economic growth and development in both the capital exporting and destination countries.  A vital key to incentivizing FDI flows in all direction is strong, transparent and enforceable investment protection, most often in the form of international investment agreements such as BIT treaties or investment chapters in Free Trade Agreements (FTAs.)  When investment disputes arise, access to and respect by all parties for the Investor-State Dispute Settlement (ISDS) arbitration system under those legally-binding investment agreements is essential.

USCIB has led international business advocacy on investment and ISDS issues, including respect for arbitral panel decisions, for many years including at meetings of the OECD, UNCTAD, and UN Commission on International Trade Law (UNCITRAL.)

To read Donnelly’s full testimony, click here.

USCIB Statement on Signing of USMCA

Published on January 29, 2020

Washington, D.C., January 29, 2020 – The U.S. Council for International Business (USCIB), which represents many of America’s leading global companies, welcomes today’s signing of the United States-Mexico-Canada Agreement (USMCA) trade agreement, updating the North American Free Trade Agreement (NAFTA). Over 12 million American jobs depend on trade with Canada and Mexico, so USMCA is an important agreement for U.S. industry for future economic growth.

“The agreement contains several provisions modernizing the original NAFTA, creating new opportunities for American companies and consumers,” said USCIB President and CEO Peter Robinson. “However, USMCA also leaves room for improvement for future negotiations, so we look forward to continued dialogue with the Administration on ensuring critical protections will be upheld in future agreements.”

  • Digital Trade: USMCA contains a state of the art digital trade chapter, including prohibiting cross-border data flow restrictions and data localization requirements, prohibiting requirements for source code or algorithm disclosure or transfer as a condition for market access, prohibiting customs duties on electronic transmissions, provisions on consumer protection, privacy, cybersecurity and open government data. This new chapter allows companies to more effectively operate in the modern global economy.
  • Customs and Trade Facilitation: USMCA significantly updates the customs and trade facilitation provisions from the original NAFTA, ensuring that goods can efficiently flow in and out of the United States. The parties agreed on provisions related to trade facilitation, including the creation of a single-access window system and expedited customs procedures for express shipments. The agreement also includes commitments from Canada and Mexico to increase their de minimis levels, moving toward leveling the playing field for American companies.
  • Labor provisions: The original NAFTA was the first FTA to include labor provisions, though they were contained in side letters. USCMA brings the labor chapter into the agreement’s body, introduces strengthened labor provisions and makes them enforceable. The provisions require adherence to core labor standards of the International Labor Organization (ILO) and effective enforcement of national labor laws.
  • IP protections: USMCA contains important provisions protecting the intellectual property rights (IPR) of American companies, including protections on patents, copyright, trademarks and trade secrets, which are important for the ability of American companies to continue to innovate. One major omission, however, is the opportunity to fully protect biologics. The removal of increased market exclusivity of biologics in the final agreement is detrimental to American companies and consumers.
  • Investment: Protections for American companies when investing in Canada or Mexico are vital to ensure continued growth and development. USMCA contains such protections for many sectors, however does not fully protect all American companies across the board by significantly limiting access to the dispute settlement mechanism. In addition, even the limited dispute settlement mechanism is only available with Mexico, so for investment disputes with Canada, American investors have to rely on mechanisms outside of the newly negotiated agreement. Picking winners and losers for investment protection is not an appropriate precedent for U.S. FTAs going forward.

USCIB looks forward to entry into force and effective implementation of this important trade deal for U.S. business, and increased trade opportunities for our members.

About USCIB:
USCIB promotes open markets, competitiveness and innovation, sustainable development and corporate responsibility, supported by international engagement and regulatory coherence. Its members include U.S.-based global companies and professional services firms from every sector of our economy, with operations in every region of the world, generating $5 trillion in annual revenues and employing over 11 million people worldwide. As the U.S. affiliate of the International Chamber of Commerce (ICC), the International Organization of Employers, and Business at OECD (known as BIAC), USCIB helps to provide business views to policy makers and regulatory authorities worldwide, and works to facilitate international trade and investment. More information is available at www.uscib.org.

Contacts:

Kira Yevtukhova, USCIB
+1 202.617.3160,
kyevtukhova@uscib.org		 Glen Brandow, USCIB
+1 212.703.5043,
gbrandow@uscib.org

USCIB Welcomes New Vice-Chair of Anti-Illicit Trade Committee

Published on January 27, 2020
Fernando Peña

Director of Customs and Regulatory Affairs for DHL in the Americas Region Fernando Peña has been appointed vice-chair of USCIB’s Anti-Illicit Trade Committee (AITC).  Illicit trade is a major threat to the U.S. economy and profoundly harms American businesses and citizens.Today’s global illicit markets generate trillions of U.S. dollars every year for organized crime, corrupt facilitators and other bad actors.  Counterfeits, illegal goods and other contraband are sold on our main streets, social media, online marketplaces and the dark web. USCIB Is committed to fight illicit trade globally.

According to Megan Giblin, who leads USCIB’s work on customs, the AITC takes a comprehensive, multi-disciplinary approach to elevating the fight against illicit trade, particularly as it relates to the work of the OECD Task Force on Countering Illicit Trade, the Asia Pacific and Economic Cooperation (APEC), the World Customs Organization (WCO) and other international organizations.

Peña joins AITC chair, David M. Luna, president and CEO of Luna Global Networks & Convergence Strategies LLC, in providing leadership of the Committee and its critical work such as engagement of China and other Source Markets of Fakes, targeted Action on Illicit Trade including Counterfeit and Pirated Goods, AIT Enforcement at Free Trade Zones (FTZs), strengthening Information sharing across sectors and markets as well as addressing “small parcels” trade in contraband and illicit commodities.

“We are very excited that Fernando has accepted a role in leading USCIB’s efforts to elevate the fight against illicit trade” said USCIB Senior Vice President for Policy and Government Affairs Rob Mulligan. “Fernando will be a valuable asset to the AITC objectives and strategic planning.  His wealth of private and public sector experience, including working for U.S. Customs & Border Protection, knowledge of international organizations, focus on Americas region for DHL and his overall understanding of the small parcels environment will be an asset to the work of the Committee.”

“Business has a critical role in mobilizing collective action to counter illicit trade” said Luna. “DHL and other USCIB AITC members can partner with governments to effectively disrupt illicit economies and criminals’ exploitation of global supply chains and FTZs.”

ICC Comments to ITU Emphasize Enabling Environment

Published on January 27, 2020

In an effort to inform the work of the United Nations about the tremendous potential of emerging ICT-technologies to help realize economic and social prosperity, USCIB has been working with the International Chamber of Commerce (ICC) over the past several years to develop policy papers and statements. On January 22, USCIB submitted comments to the Open Consultation convened by the International Telecommunications Union (ITU) Working Group on International Internet-related Public Policy Issues, which focused on required components that would foster the development and disseminations of emerging technologies for sustainable economic development. Importantly, this approach would help to meet specific targets of the UN Sustainable Development Goals (SDGs).

According to USCIB Vice President for ICT Policy Barbara Wanner, these components go beyond simply building infrastructure. The components include a foundation composed of infrastructure, applications and services and user engagement, a layer composed of policy issues – economic, technical, social/cultural, governance, and another layer featuring participation of relevant stakeholders from business, government, civil society and the technical community to inform the policymaking process.

USCIB cited ICT, Policy and Sustainable Economic Development, a policy paper prepared by the ICC Commission on the Digital Economy with active contributions from USCIB members, as the basis for its comments.

“We urge the ITU to use this document as a reference since underlying elements of the framework – everything from infrastructure and spectrum allocation, to data protection and cross border data flows, to digital skill development and access – will continue to be necessary to effectively harness the benefits of Artificial Intelligence (AI) and other emerging technologies going forward,” said Wanner.

USCIB also endorsed comments submitted by ICC BASIS as part of this public consultation.

 

Robinson Kicks Off 2020 With OECD, ICC France, ICC Germany 

Published on January 21, 2020
ICC-Germany staff (Secretary-General Oliver Wieck, center) with USCIB President and CEO Peter Robinson (right) in Berlin

The Organization for Economic Cooperation and Development (OECD) held its annual consultation with Business at OECD on January 13 in Paris under the theme, Role of Business in Lifelong Opportunities: People First Policies to Bridge Divides. USCIB President and CEO Peter Robinson and AT&T Senior Vice President Karim Lesina provided a kick-off presentation on behalf of industry, followed by remarks by OECD Secretary-General Angel Gurria and Business at OECD’s Chairman Phil O’Reilly and Secretary-General Russell Mills.

Recommendations by Business at OECD focused on the value of relying on open markets on trade, investment, taxation and development initiatives; ensuring a people-first approach to developing new approaches to the Future of Work; and incentivizing and driving innovation in the health and environment areas in the 5G generation.

According to Robinson, it was the best-attended consultation to date, with a strong business delegation, senior OECD staff including all four Deputy Secretaries-General and OECD Ambassadors from nearly all OECD member countries. In helping to set the stage, Robinson emphasized the continued commitment of the American business community to open markets and multilateral approaches and institutions. “The necessity for inclusive multilateralism, whereby all stakeholders—including business—have a seat at the table to pursue societal challenges together is crucial,” said Robinson, who also praised the OECD in setting an appropriate example in this regard.

Lesina provided the perspective of a leading modern media company that is investing globally while driving innovation in life-long learning opportunities for its employees.  He highlighted that increased convergence and digitalization have helped create a truly global economy, providing consumers today with a unique opportunity to benefit from cross-border activity best cultivated by open market policies. Lesina emphasized the need for flexible policy and regulatory frameworks that foster innovation and drive creativity and underscored the vital role of the OECD in delivering the benefits of the digital economy to consumers everywhere through forward-looking and evidence-based policymaking.

“The Consultation provides an excellent opportunity for business to interact with OECD staff and country Ambassadors,” said Robinson. Robinson had several meetings with OECD management staff to discuss Business at OECD and USCIB priorities.

While in Paris, Robinson also visited USCIB’s International Chamber of Commerce (ICC) National Committee counterpart, ICC-France, and met with the new Secretary-General of ICC-France, Emmanuelle Butaud-Stubbs, to discuss mutual interests and priorities and cooperation in policy areas including trade and environment.

Robinson then traveled to Berlin to meet with several of USCIB’s global affiliate counterparts in Germany: ICC-Germany, the German Employers Federation (BDA) and the German Chamber of Industry and Commerce (DIHK). Secretary-General of ICC-Germany Oliver Wieck, Director of Communications Katrin Rupprecht and staff organized a discussion forum at which Robinson addressed U.S. Trade Policy in 2020. ICC-Germany members including Siemens, Thyssenkrupp and BDI attended as did Dr. Berend Diekmann, head of division for USA/Canada/Mexico from the Federal Ministry for Economic Affairs and Energy. Finally, Robinson met with BDA CEO Steffen Kampeter and DIHK Director of ATA Carnet Dr. Kornelia Ferati.