Competitiveness and Innovation Archives

USCIB Highlights US Business Stake and Voice at UNGA Opening

Published on October 3, 2017

After the high level opening week of this year’s 72nd United Nations General Assembly (UNGA), USCIB is moving ahead to draw attention to U.S. business accomplishments and recommendations as the UNGA now moves into its longer-term deliberations.

This year’s UNGA got underway during a time of stresses and strains in the international community. The nature of these stresses is particularly acute for the U.S. business community: a growing need for financing and investment in infrastructure, the open trading system called into question, and calls by some for a retreat from engagement in multilateral forums. How does American business plan for these challenges in the international marketplace, and where can we make the biggest difference?

The 72nd UNGA is a particularly relevant forum for USCIB this year because it provides platform to begin addressing these very questions through the lens of the UN’s 2030 Development Agenda and its 17 Sustainable Development Goals (SDGs). This year’s UNGA is also compelling because of the opportunities that UN reform proposals by Secretary General Guterres and others could offer to strengthen business access and enabling frameworks for business action.

In the face of challenges such as global unemployment, climate change and population growth, USCIB events last week spotlighted our members’ view that the SDGs are “must-wins” for the United States and for the American business community. While economic growth abroad helps create jobs at home, open markets and policies that foster private investment offers new markets for our products. In USCIB’s view, private sector-led innovation aimed at improved sustainability gives the U.S. a leg-up in global competition while advancing investment in energy sources and new technologies to combat climate change.

USCIB’s side events and messaging during UNGA’s high-level opening week also emphasized multilateral solutions to global challenges, with USCIB policy experts and its members constructively contributing to dialogues and forming close working relationship with both U.S. government and UN representatives to advance U.S. business contributions to sustainable development. USCIB’s commitment to the SDG’s was reflected in its theme, “Business Makes It Happen.” This continuing theme will emphasize that achieving the SDG’s relies on strong involvement, commitment and incentives for the private sector.

This newsletter consolidates summaries of USCIB-related side-events and activities during UNGA opening week and outlines outcomes and next steps.

For questions regarding USCIB’s work on Sustainable Development, please contact Norine Kennedy, vice president for strategic international engagement, energy and climate change: nkennedy@uscib.org.

USCIB Partners With Global Business Organizations at UNGA Opening Week

Published on October 3, 2017
ICC Secretary General John Danilovich opens the UN SDG Business Forum in July 2017

USCIB is proud of its affiliations with leading global business organizations in the multilateral system and had the privilege to work with the International Chamber of Commerce (ICC) and the International Organization of Employers (IOE) to make the case for recognized opportunities for the private sector to cooperate and dialogue with the UN across the range of issues covered by the 2030 Agenda for Sustainable Development.

International Chamber of Commerce (ICC)

This year marked ICC’s first UNGA session attending as a recognized observer organization. ICC’s delegation was led by ICC Chairman Sunil Bharti Mittal and included ICC executive board members and ICC Secretary General John Danilovich.  ICC’s planned engagement was intended to firmly establish ICC’s presence at the UN as the definitive voice of global business – building on engagement at this year’s UN Financing for Development Forum in May and the High-Level Political Forum in July.

ICC drew on the work of several ICC Commissions to inform deliberations on the Sustainable Development Goals (SDG’s) – from the important role of digital technologies in delivering the SDG’s to ICC’s trade facilitation activities, to its efforts to promote small and medium sized companies in trade and other commercial activities. ICC involvement during the UNGA’s opening week included:

-ICC High-Level week side-event, in conjunction with the governments of Indonesia, Norway and Mexico, as well as UNDESA and the Mobile association GSMA.

-Joining events on Digital Entrepreneurship for 2030,  the UN Innovation Summit, and the UN private Sector to discuss the role of private sector technology and innovation in implementing the SDG’s.

As in previous years, ICC played a leading role in the Concordia Summit, specifically in the session on “Innovative Financing Solutions to achieve SDG’s.”

International Organization of Employers (IOE)

USCIB President and CEO Peter M Robinson, who also serves as regional vice president for North America for the IOE, represented IOE during several employer-organized side-events, including the launch of the Equal Pay International Coalition (EPIC). EPIC is a strategic multi-stakeholder partnership founded by the International Labor Organization (ILO), UN Women and the Organization for Economic Cooperation and Development (OECD) to assist UN Member States in achieving the SDG’s, specifically those that promote gender equality and women’s empowerment.

Robinson spoke on a panel on “Drawing top talent for innovation and growth at leading businesses through equal pay policies,” alongside business leaders from IKEA, Accenture, Barclay’s, GAP and Catalyst. Robinson emphasized the compelling business and economic case for unleashing women’s skills and talents and empowering women to enjoy equal access to job opportunities and career advancement. Rather than increasing regulation and legislation, Robinson pointed out that solutions for closing gender parity gaps include a better understanding of the barriers behind such gaps, with cultural and legal barriers differing widely among countries.

“The IOE, with its global membership, is well positioned to help in this regard in both education and advocacy: it is able to share and leverage the experiences of its membership in providing practical services to members and in informing and advising governments and international organizations on policy actions,” said Robinson.

Robinson also represented employers at an Alliance 8.7 launch of the ILO’s Modern Slavery and Child Labor Global Estimates where he provided insight on the position of employers with regards to child labor and forced labor. In his remarks, Robinson emphasized the continued dedication of employers to eradicate child labor and forced labor, noting the importance of collaboration between governments and the private sector, especially given the complexity of today’s global supply chains.

“While the primary responsibility lies with governments to establish and enforce national labor laws, business also has a desire and responsibility to do what it can to respect and follow those laws and looks forward to working with governments and other civil society actors in the shared fight to eliminate child and forced labor,” said Robinson.

The new Modern Slavery Global Estimates encompass forced labor and forced marriage and it is the first time such research was conducted. The ILO and the Walk Free Foundation jointly published the new Modern Slavery Global Estimates. Additionally, the new Child Labor estimates will be an update to the Global Estimates on Child Labor published by the ILO in 2012.

Multilateral Effort Needed to Address Tax in Digital Economy

Published on October 2, 2017

In response to recent European Union proposals concerning taxation of the digital economy, Business at OECD (BIAC) expressed deep concerns that unilateral action for the taxation of the digital economy will lead to serious distortions in markets and global value chains.

“Business at OECD representing corporate communities across the globe is fully and constructively engaged in the OECD/G20 process to address Base Erosion and Profit Shifting (BEPS), including Action 1 on the digital economy”, confirmed Business at OECD Secretary General Bernhard Welschke. “We recognize there are important and complex issues concerning the digitalization of our economies. However, unilateral action in this field will lead to costly fragmentation and threatens to diminish the considerable potential for growth and innovation,” he added.

Welschke noted that only a comprehensive multilateral engagement between tax authorities, taxpayers and other stakeholders will lead to outcomes that support a successful digital transformation. “Therefore, the OECD is the most appropriate forum in which to pursue this engagement, and we encourage all countries to participate in this multilateral effort,” explained Welschke.

USCIB’s tax expert Carol Doran Klein also noted: “For business to flourish in the digital economy, tax rules must be implemented in a coherent and coordinated manner. USCIB worked actively through BIAC to shape the BEPS work toward this end. Fragmented rules are likely to result in double taxation and a negative impact on global trade and Investment.”

WTO Meetings in Geneva Set the Stage for Upcoming Ministerial

Published on October 2, 2017

As governments begin to prepare for the upcoming World Trade Organization (WTO) Ministerial (MC 11) in December, USCIB Senior Vice President Rob Mulligan traveled to Geneva last week for the WTO’s annual Public Forum, as well as related meetings organized by the International Chamber of Commerce (ICC).  Mulligan also met separately with a range of officials from the WTO, U.S. government, foreign governments and international organizations.

The issues mentioned most often in these meetings as having the potential for some type of action at the Ministerial included investment facilitation, fisheries subsidies, e-commerce, services facilitation and agriculture.  However, it also seems that each of these are facing challenges that could prevent a deliverable at MC 11.

Discussions during the Public Forum around the impact of trade often looked at the impact of technology and the need for better approaches to education and training, as well as more effective safety nets for those losing jobs. Additionally, some countries, including the United States, voiced the need for institutional reform at the WTO. According to Mulligan, it was suggested that business could play an important role in pressing for reforms.

“While the Ministerial may not produce a number of deliverables, business engagement will be needed to ensure that the WTO moves forward after the Ministerial on issues that address meaningful concerns with the global trading system,” said Mulligan. “This will be important to preserving the relevance and value of the WTO in opening global markets,” he added.

In addition to the Public Forum, ICC hosted a panel that highlighted the report they had sponsored in March with a range of ideas for the WTO to take up at the December Ministerial.  Panelists also discussed the importance of investment protections and cross-border data flows to business.  ICC noted that they will be working with the government of Argentina in organizing a Business Day in Buenos Aires on December 12 that will deliver recommendations to the WTO on future work.

This year’s WTO Ministerial will be hosted by Argentina.

USCIB’s Statement on China Urges WTO Compliance

Published on September 25, 2017

As China continues to grow in importance in the global economy, it is crucial for the Chinese and U.S. governments to continue to work together to address common challenges and responsibilities. In view of this, USCIB has recently submitted a statement to the United States Trade Representative (USTR) on China’s compliance with its World Trade Organization (WTO) commitments, which incorporated a wide array of input from USCIB members across various sectors.

In the statement, which is submitted annually, USCIB commended the U.S. and Chinese governments for important work in on-going bilateral dialogues, as well as in support of working relationships between U.S. and Chinese agencies which provide invaluable opportunities for exchanging information and addressing agency-specific issues. The statement addressed important issues to U.S. business including taxation, customs and trade facilitation, information technology and intellectual property rights. Furthermore, it advocated for continuing negotiations of a Bilateral Investment Treaty (BIT) between the U.S. and China.

“We also urge both countries to utilize the full range of multilateral forums in addition to the WTO, including the Asia-Pacific Economic Cooperation (APEC) Forum and the Organization for Economic Cooperation and Development (OECD), to work toward improved commercial relations,” said Eva Hampl, who leads USCIB’s work on China.

“While USCIB acknowledges the efforts China has made since joining the WTO in 2001 to meet its obligations under the terms of its accession agreement, there still remain significant WTO obligation compliance concerns,” added Hampl. These concerns include government procurement, trade restrictions in information technology and continued intellectual property violations in audiovisual, software, agriculture biotechnology and chemicals.

The full statement is available here.

Shiles to Promote Trade Services at World Chambers Congress

Published on September 18, 2017
This year’s World Chamber Congress is taking place in Sydney, Australia

The International Chamber of Commerce (ICC) kicks off the tenth installment of its biennial World Chambers Congress this week in Sydney, Australia, which will bring over 1,200 delegates from across the globe to discuss challenges impacting the business and chamber communities and to exchange knowledge and expertise while promoting result-oriented innovation. In an ever-changing business climate, the Congress, with its high level speakers, addresses and examines today’s most significant global issues.

Among them will be USCIB’s Senior Vice President for ATA Carnet and Trade Services Andy Shiles who will be attending ATA Carnet global management meetings in Sydney. Stay tuned for next week’s e-newsletter for a report from the field!

New South Wales Premier Gladys Berejiklian will officially opened the World Chambers Congress. While the Congress is taking place in Australia during the United Nations General Assembly in New York, ICC First Vice-Chair and Corrs Chambers Westgarth Partner and CEO John W.H. Denton acknowledged the important discussions taking place in New York and called on business and chamber leaders to show support for the UN Sustainable Development Goals and help ensure that businesses worldwide are doing all they can —in their daily operations and investments—to drive their implementation.

The #10WCC is jointly organized by the Sydney Business Chamber, a division of NSW Business Chamber and the ICC.

OECD Business Communicators to Meet in Ireland

Published on September 18, 2017
Dublin’s Samuel Beckett Bridge: The Irish capital will welcome business communicators from across the OECD.

Continuing its efforts to re-frame the global narrative on trade and economic openness, on October 12-13, Business at OECD (BIAC) will hold its 2nd Heads of Communications Roundtable in Dublin and Cork, Ireland, in cooperation with its Irish member Ibec . This is a two-day program for heads of communications from BIAC’s global membership, and USCIB company representatives are encouraged to attend.

“The roundtable will include a series of meetings, company visits, and guest speakers on themes relevant to communications professionals within business federations and individual companies, and will facilitate a solution-based discussion on the challenges we face in the current international socio-political environment,” according to Ali Karami-Ruiz, BIAC’s director of policy and communications. “Through the event, we will showcase the success and substance globalization has brought to Ireland’s economy.”

In the context of a growing populist narrative in some economies, Irish business leaders will address participants on the challenges and opportunities we face in communicating business and open markets. The program will include a number of company visits and inputs from the communications team behind the “Yes Equality” campaign for marriage equality in Ireland, and from the Irish government’s director of strategic communications.

Communications professionals from USCIB member organizations who are interested in participating in the roundtable should contact Jonathan Huneke, USCIB’s vice president for communications and public affairs.

 

ICC/USCIB Competition Committee Hosts DOJ Antitrust Expert

Published on September 18, 2017

USCIB’s Competition Committee held its annual joint meeting on September 11 in partnership with the International Chamber of Commerce (ICC) Commission on Competition. Introductory remarks included comments by Paul Lugard, partner, Barker Botts LLP and chair of the ICC Competition Commission, and John Taladay, partner, Baker Botts LLP and chair of the USCIB Competition Committee.

The meeting included an off-the-record exchange of views with Bernard A. Nigro, Jr., deputy assistant attorney general, U.S. Department of Justice, antitrust division, on issues of relevance to USCIB membership, including international engagement, trade related competition issues and mergers.

The remainder of the meeting provided updates on the ongoing projects of the various task forces of the ICC Competition Commission, including on compliance and advocacy, merger control regimes, due process, the International Competition Network (ICN), cartels and leniency, and court proceeding in antitrust damage claims.

Finally, the membership received an update on ASEAN competition issues by Hatasakdi Na Pombejra from HN Pro International, who presented on behalf of ICC Thailand.

Business Makes It Happen: American Business at the UN General Assembly

Published on September 18, 2017

By Peter M. Robinson
President and CEO
United States Council for International Business

 

“We live in a complex world. The United Nations cannot succeed alone. Partnership must continue to be at the heart of our strategy. We should have the humility to acknowledge the essential role of other actors, while maintaining full awareness of our unique convening power.”

-Antonio Guterres, UN Secretary General

The 72nd United Nations General Assembly (UNGA) gets under way this week at a time of stresses and strains in the international community. The nature of these stresses is particularly acute for the U.S. business community: a growing need for financing and investment in infrastructure, the open trading system called into question, and calls by some for a retreat from engagement in multilateral forums. How does American business plan for these challenges, and where can we make the biggest difference?

For USCIB and its members, an important place to start tackling these questions is the UN’s 2030 Development Agenda and its 17 Sustainable Development Goals (SDGs), a framework that will be at the center of this week of high-level meetings, also known as Global Goals Week.

In the face of challenges such as unemployment, climate change and population growth around the world, USCIB believes we have to pursue the SDGs as “must-wins” for the United States and for the American business community. We know that economic growth abroad helps create jobs at home. Open markets and policies that foster private investment offers new markets for our products. Innovation aimed at improved sustainability give the U.S. a leg-up in global competition while advancing investment in energy sources and new technologies to combat climate change.

That is why, this week, USCIB is holding a series of discussions on the margins of the UNGA to cultivate the “ingredients for impact” to catalyze business contributions to the SDGs. We are doing this under the theme, “Business Makes It Happen,” because we believe that, without strong commitment and incentives for the private sector, we won’t be able to achieve the Global Goals.

USCIB supports multilateral solutions to global challenges, with business constructively involved. We rely on solid, long-term dialogue and a close working relationship with both our government and the UN system to advance U.S. business contributions to sustainable development, delivering economic benefits at home and abroad. When it comes to what business depends on to succeed, thrive and lift the American economy, we look to Washington, D.C., and to the United Nations. We depend on both, and that is why USCIB has chosen to step forward as a U.S. business organization, working closely with our partners in the U.S. government as UNGA gets underway.

The Three I’s

The 2030 Agenda provides a blueprint for action that enjoys wide business and government support. But there are still three broad challenges in terms of implementation by business – inclusiveness, innovation and information.

  • Information: While there is more and better information available from companies on SDG action, we are overwhelmed with the quantity of data, and so we – business, governments — don’t know where to begin to understand or prioritize action. We have too much information and not enough analysis. The business community needs to develop ways to present its progress that are accessible and relevant for the international community and national governments.
  • Innovation, which is the best source of solutions for sustainability, still faces obstacles due to a lack of proper incentives for researchers, inventors and investors. The UN must do better in creating a fully welcoming environment and institutional framework for technology innovation that is genuinely involving business experts.
  • Inclusiveness: A basic tenet of the Agenda for 2030 is that no one is left behind. That suggests that everyone needs to be involved to deliver solutions. Yet in some UN forums, the private sector is still not regarded as a full partner in the effort. At times, there are still political sensitivities when business wants to come to the table, or even just listen in on policy deliberations. Clearly, we in business need to do more to demonstrate commitment and deliver actual results.

Statements by both United Nations Secretary General Antonio Guterres and President of the General Assembly Miroslav Lajčák suggest that, under their leadership in the UNGA this year, we could see progress towards a more inclusive and transparent framework to involve the business community across the board. USCIB would endorse and welcome such a development.

By their very nature, many of the SDGs depend on partnerships to be implemented, and we regard business as indispensable in collaborative action to deliver the SDGs. On its 2nd anniversary, the USCIB web platform, Business for 2030, now showcases 200 initiatives from 52 companies, in over 150 countries, covering 85 of the 169 SDG targets. These encompass both philanthropic and corporate responsibility initiatives as well as core business operations that all contribute to achieving one or more of the 17 SDG targets.

Progress has been made, as witnessed by the strong response to this year’s SDG Business Forum on the margins of last July’s High-Level Political Forum – it literally filled the UN’s largest room, the General Assembly Hall. Governments and the UN have to continue to create those new kinds of spaces in which that exchange on policy and practice can occur substantively and with good governance.

With our affiliations to leading global business organizations embedded in the UN system, the International Chamber of Commerce (ICC) and the International Organization of Employers (IOE), we have been fortunate to be on the front lines of the collaborative discussions that brought forward the SDGs, and to foster recognized opportunities for the private sector to cooperate with the UN. The process of multilateralism does move slowly, demanding investment of time and effort, but the rewards are outcomes in which business is invested and knows what to expect.

It is already clear to USCIB that one element of success towards efficiency and effectiveness in the reform of the UN is to create the most open and inclusive institutional structures to consult with representative business bodies, and then to recognize and include those inputs. We have seen time and again how the ILO, the OECD and other inter-governmental forums have demonstrated that including business in a recognized manner is a value add because it is brings on board those societal partners that invest, innovate and implement.

At USCIB, we are more convinced than ever that a more open and accountable policy dialogue, with recognized involvement of representative business groups, is a fundamental element of good governance (which is in fact the aim of SDG16), and will deliver real results. By and large, UN bodies are involving business in more substantive ways, and we are looking forward to this year’s UNGA to keep that discussion going, particularly in the context of UN reform.

In his report laying out his vision of UN reform, Secretary General Guterres presents eight big ideas for reform of the UN system.  At the heart of those are the 17 big commitments which the global community made in 2015: the SDGs. Our main goal this week is to join the international dialogues and offer ways to make those big ideas a reality for, and with, U.S. business.

Throughout the negotiations leading to the SDGs, and now in the period of their execution, we have underscored the need for business to be embedded in the process. This is necessary to leverage all the resources that the private sector can provide through investment, innovation and know-how. With dialogue and the right mix of incentives, business really can make it happen and we will be working throughout this year’s UNGA to continue the evolution towards collaborative and impactful SDG partnerships with business.

Robinson Talks Trade at International Trade Conference

Published on September 18, 2017

BAFT, the leading international transaction banking association, held its 27th Annual Conference on International Trade in Chicago on September 12, where USCIB President and CEO Peter M. Robinson served as keynote speaker to address the topic of U.S. Trade Policy.

“This is a very perilous time for trade,” noted Robinson. “In the past, no matter what other countries were doing or saying, we could always count on the U.S. and UK to stand up for open markets. That’s no longer the case. We could be at a point where anti-trade forces can effectively flip the script.”

In discussing NAFTA, Robinson emphasized USCIB’s recent recommendations to the Trump administration:

  • First, do no harm. Most of NAFTA has worked well for companies and has spurred far greater integration of the North American economy than would have happened without it.
  • Negotiate new and better rules for e-commerce and digital trade, an enormous part of the U.S. economy, to include provisions on e-commerce and digital trade such as ensuring the flow of data across borders, prohibiting requirements to localize data in a country, protecting personal data, and not carving out certain sectors (like financial services) from these provisions.
  • More regulatory coherence, strong protection of investments (including effective investor-state dispute settlement mechanisms), and rules to level the playing field with state-owned enterprises.

On trade with Asia, Robinson discussed the importance of an alternative approach in place of the Trans-Pacific Partnership (TPP). “TPP was really a top-notch agreement in my view,” he said. “But we walked away from it for political reasons. And potential FTA partners like the UK and Japan would be likely to take a very hard line in any talks with us.”

Robinson also discussed innovation and USCIB’s work on the digital economy, alongside the OECD, that the OECD takes into account the views of business and to shape policy that would not stifle innovation. Robinson also touched upon the International Chamber of Commerce’s new status at the UN General Assembly which will enable USCIB to push for expanded trade, access to trade finance and sensible approaches to technological innovation and regulation, as well as promoting business involvement in the UN Sustainable Development Goals, which encompass financial inclusion.