Competitiveness and Innovation Archives

USCIB Op-ed: NAFTA 2.0 Needs to Protect Investment

Published on August 1, 2017

USCIB’s Vice President for Investment and Financial Services Shaun Donnelly along with its Director for Investment, Trade and Financial Services Eva Hampl recently contributed an op-ed in The Hill titled, “NAFTA 2.0 needs to enshrine investor protections.”

As the Trump administration gears up to update the North American Free Trade Agreement (NAFTA) later this month, Hampl and Donnelly evaluate the Trump administration’s negotiating objectives, which were released last month.

“Overall, the administration’s “NAFTA 2.0” wish-list is solid. Some commentators have noted the irony of including so many goals that were essentially attained in the Trans-Pacific Partnership, an agreement President Trump withdrew from on his third day in office,” they write. However, one of the more crucial objectives, mainly investor protection under the agreement’s Chapter 11 are not included.

“These provisions, which allow U.S. investors both small and large to seek compensation for unfair, discriminatory or inequitable treatment at the hands of foreign governments, are based on bedrock principles embedded in our own Constitution prohibiting abusive government treatment and the taking of private property without just compensation. Without this provision, domestic courts become the only legal recourse for a wronged investor. While Mexico has made great strides in many respects, its court system is still far from impartial. Indeed, miscarriages of justice can happen in any country, including advanced democracies like the United States and Canada,” they noted.

Please visit The Hill for the whole op-ed.

ICC Advocates for Women Empowerment Through Technology

Published on July 21, 2017

The annual UN High Level Political Forum wrapped up last week having measured progress and implementation of the UN Sustainable Development Goals in the past two years. USCIB was on the ground during Agriculture and Food Day, which focused on Goal 2-Ending Hunger, as well as the UN SDG Business Forum, which focused on business support among all 17 SDG’s.  SDG 5 aims to achieve gender equality and empower all women and girls and calls for enhances use of enabling technology –information and communications technologies (ICT’s) in particular—to promote the empowerment of women.  For many women around the world, ICT’s can be leveraged for personal security, better access to education and jobs, financial inclusion and access to basic healthcare information. But benefits such as these rely on women having meaningful access to ICT which can be facilitated or prevented by several factors, including affordability, relevant content, skills and security.

To help turn commitment into action, the International Chamber of Commerce (ICC) partnered with UN Women – the global champion for gender equality – to host a side-event during the HLPF.  The event, Accelerating Women’s Economic Empowerment to Achieve the 2030 Agenda, showcased the global efforts stakeholders have embarked on to bring women’s economic empowerment to the forefront of all the SDG targets.

“Through innovation, investment and development of products and services, the private sector plays an important role in advancing gender equality and improving the lives of women,” said Barbara Wanner USCIB vice president for ICT Policy. ICC highlighted several private sector initiatives during the side-event that are catalyzing women’s economic empowerment in developed and developing countries and presented the role of ICT’s in advancing the SDG’s.

Participants included contributors to the UN Secretary General High-Level Panel for Women’s Economic Empowerment and representatives from the governments of the United Kingdom and Costa Rica, UN Women, the International Labor Organization, ICC Secretary General John Danilovich, and Carolyn Nguyen of Microsoft who is also vice-chair of the ICC Commission on the Digital Economy.

For additional information on this event, please visit ICC’s website.

ATA Carnets Paper Processing Moves Into the 21st Century

Published on July 21, 2017

The World Customs Organization (WCO) has endorsed the launching of a pilot in 2018 of a digital ATA Carnet process! The eCarnet working group of the International Chamber of Commerce/World Chambers Federation (ICC/WCF) provided an update on the electronic Carnet (eCarnet) developments to the WCO’s eATA Carnet Working Group.

The group met at WCO headquarters in Brussels, Belgium on June 30.  The ICC/WCF advised it is moving, on schedule, into phase three of creating a digitized ATA Carnet system.  There will be a pilot project launched in 2018 to test the system and processes for an eCarnet.

ICC/WCF showcased its recently developed Mercury system, a centralized database system of key ATA Carnet data.  A digitized ATA Carnet will facilitate transactions, increase data security, reduce exceptions and improve administration.  Customs, Carnet holders, service providers and national guaranteeing associations, such as USCIB, will be more productive with a modernized export/import process for items moving under an ATA Carnet. More than 15 nations and the European Union expressed their support and welcomed this initiative.  Some countries displayed an eagerness to join the pilot project.

USCIB’s Andy Shiles attends the WCO meetings in Brussels, Belgium

Andrew Shiles, USCIB’s new senior vice president of ATA Carnets and Trade Services, attended the WCO meeting and emphasized the large scale of business opportunities that ATA Carnets can provide for both small and large American enterprises. “It is exciting to be involved in such a dynamic time in the ATA Carnet industry,” said Shiles, adding that “We are truly making history by moving the ATA Carnet processes into the 21st century.  This means that billions of dollars worth of goods will move through efficient eATA Carnet processes resulting in jobs being created.”

The ATA Carnets are used by thousands of exporters around the world to get goods through customs quickly and easily. While the ATA Carnet is currently in force in 77 countries, Shiles is striving to see an expansion of even more countries.

ATA Carnets are internationally recognized customs documents that permit temporary duty-free, tax-free entry of qualified goods for up to one year. They are used widely to facilitate entry of goods for trade shows, product samples and professional equipment. “Astute business people utilize the unique tool of an ATA Carnet to promote their goods internationally where they can generate incremental sales, reduce handling costs and protect a company’s cash flow when it comes to international transportation,” noted Shiles.  “In fact, a company dealing with international sales may be missing out on a great opportunity if they if they are not using carnets,” he warned.

USCIB manages and guarantees the ATA Carnet system in the United States, with responsibility for issuing ATA Carnets falling to two outside service providers, Roanoke Trade and the Corporation for International Business. ATA Carnets are accepted in 77 countries and territories, while the global ATA systems are overseen by the WCO and the ICC. USCIB serves as ICC’s U.S. national guaranteeing association. For more information on ATA Carnets and the benefits they can provide for your business, please visit USCIB’s website.

USCIB Roundtable Explores Promise of Apprenticeships

Published on July 21, 2017
L-R: Ronnie Goldberg (USCIB), John Ladd (US Department of Labor), Peter Robinson (USCIB), Shea Gopaul (Global Apprenticeship Network)

Apprenticeships play a crucial role in supporting the development of business-ready skills for youth and in realizing goals of inclusive economic growth and an equitable transition to a more sustainable world. In light of this, The USCIB Foundation, which is the educational and research arm of USCIB, partnered with Citi and the Global Apprenticeship Network (GAN) to organize a roundtable on July 20 in New York focused on apprenticeship models and practice in the U.S. The roundtable included representatives of approximately 25 companies who are either actively implementing apprenticeship programs or are interested in getting started.  John Ladd, the administrator for the Office of Apprenticeship of the U.S. Department of Labor (USDOL) joined the meeting.

John Ladd, administrator for the Office of Apprenticeship of the U.S. Department of Labor, gave remarks at the meeting

Ladd, who gave keynote remarks, discussed the context of what is driving interest in apprenticeships in the United States. “It would have been hard to imagine this conversation happening 10 years ago,” said Ladd. What changed? In particular, Ladd noted, unemployment is decreasing yet millions are still underemployed or unemployed and there is a clear mismatch between employers with jobs that have certain skills requirements and people in the sidelines who don’t yet have those skills. To address these challenges, employers – in partnership with government and educational institutions like community colleges – have identified apprenticeships as an effective means to help provide a path to employment for workers and to fill their own hiring needs with workers with the right skills for their jobs. The Executive Order on apprenticeships recently signed by President Donald Trump provides a framework for the key role USDOL will play in supporting business in this key area.

The hour-long breakout session led to a collaborative discussion among companies, nonprofits and NGO’s in attendance on both solutions and common challenges that need to be addressed, such as the need to educate students, communities and families about the benefits of apprenticeships in lieu of 2-year or 4-year post-secondary options. Other challenges raised by participants included issues around the definitions of apprenticeships as well as the need to create technological solutions and compelling marketing schemes that will resonate with millennials. Many participants agreed on the important role of government, both local and national, as a convener, citing the United Kingdom as a good role model for public private partnership in enabling successful apprenticeship programs.

“It’s very clear that we’re preaching about benefits of apprenticeships to the converted,” said USCIB’s Senior Counsel Ronnie Goldberg during her concluding remarks and summary of the roundtable. “We must now leverage the enthusiasm and expertise as evidenced in this workshop to drive positive change within our companies and communities. Apprenticeships will enable young people to have jobs and a career, but also provide companies with talent for the future.”

The event was hosted by the Citi Foundation and attended by companies such as Hilton, Nestle, IBM, Bechtel and Microsoft.

Donnelly Co-authors Report on “Commercial Diplomacy”

Published on July 17, 2017
Shaun Donnelly

USCIB Vice President Shaun Donnelly has recently co-authored a new report on commercial diplomacy under the auspices of the American Academy of Diplomacy (AAD), a prestigious group of leading former senior U.S. government diplomats.  Donnelly, like former USCIB President and current USCIB Board Vice Chair Tom Niles, was elected to AAD membership after retiring from a long career as a Foreign Service Officer at the U.S. Department of State.

Over the past two years, Donnelly has co-led, along with retired Ambassador and former Acting Director General of the Foreign Commercial Service Chuck Ford, AAD work on two reports covering U.S. government support (focused on Department of Commerce, Department of State and U.S. embassies and consulates abroad) to assist U.S. business win sales, contracts, investment opportunities and other deals against increasingly strong foreign competition, often benefiting from much more effective advocacy and support programs from competitor governments.

The original report Support for American Jobs, Part I from March 2016 has now been supplemented with Part II from June 2017, which goes into further detail, at the request of the Commerce and State Departments, on three specific issues, including a detailed analysis of the commercial diplomacy programs of leading competitor governments.

“The “Executive Report” cover document addressed to leaders in the Trump administration paints a clear picture of foreign governments stepping up their games in support of their own companies, large and small, and suggests ways the new administration might be able to launch a major commercial diplomacy initiative do the same to help U.S. companies win on increasingly competitive international battlefields,” said Donnelly.

Donnelly and his AAD colleagues will be meeting with administration and congressional leaders over the coming weeks, seeking increased awareness of and action on the issue.  One of the potential merits of the nexus of commercial diplomacy issues is that it avoids some of the contentious atmosphere that surrounds U.S. trade policy debates (e.g. NAFTA, Trans Pacific Partnership, steel, World Trade Organization, etc.) and simply focuses on how the U.S. government might be better able to help our companies (and thereby our workers, shareholders and communities) win contracts, sales and deals and whatever trade policies the U.S. government is pursuing.

If you or colleagues at your organization have questions or would like to discuss the reports or commercial diplomacy in general, or if you’d like to help move these issues forward, feel free to contact Donnelly at sdonnelly@uscib.org.

Administration Goals for Modernizing NAFTA Include Many USCIB Priorities but Leave Out Key Issues

Published on July 14, 2017

Washington, D.C., July 17, 2017 – The United States Council for International Business (USCIB), which represents America’s top global companies and helps exporters of all sizes do business across borders, is encouraged that the objectives for modernization of the North American Free Trade Agreement (NAFTA) released by the office of the U.S. Trade Representative (USTR) today cover many of the issues proposed in USCIB’s submission last month. But the group said some of the objectives leave out references to key business priorities such as investor-state dispute settlement (ISDS).

USCIB President and CEO Peter M. Robinson said: “The fact of the matter is that a great many businesses base their success on increasingly seamless integration of the North American trading space. U.S. negotiators need to start from the premise that three-way trade and investment among the NAFTA partners should be enhanced, not restricted. A modernization effort must include strong investment protection provisions, including effective ISDS. We encourage USTR to maintain an intensive dialogue with affected U.S. stakeholders, including business, as they flesh out more detailed objectives, strategies and priorities.”

Last month, USCIB released its priorities for NAFTA modernization, calling on the administration to update the 23 year-old pact to accommodate new realities in global commerce, including the rise of the digital economy, while keeping what works from the original agreement.

USCIB urged the administration to update and strengthen key NAFTA provisions, including the liberalization and protection of investment flows, protection of intellectual property, customs and trade facilitation, regulatory cooperation, and improved agricultural market access. It also recommended tackling new areas not included or anticipated in the original agreement two decades ago, such as the digital provision of goods and services, data localization requirements, and state-owned enterprises.

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 several leading international business organizations, USCIB provides business views to policy makers and regulatory authorities worldwide, and works to facilitate international trade and investment.

Contact:
Jonathan Huneke, USCIB
Tel: +1 917 420 0039
jhuneke@uscib.org

Tax Conference in Germany Focuses on Growth

Published on July 10, 2017

While the conceptual phase of the Base Erosion and Profit Shifting (BEPS) Process has been accomplished, it is now crucial to monitor its implementation and to alleviate some of the overly burdensome effects of the BEPS Project. In light of this, the International Chamber of Commerce, Business at OECD (BIAC) and BusinessEurope organized a discussion on June 30 in Munich, Germany on tax policy issues, with the aim to facilitate cross border trade by reducing double taxation, simplifying tax rules, strengthening tax payers´ rights, fostering a growth oriented tax policy and increasing tax certainty.

Business federations jointly brought together private sector leaders, OECD representatives, governments, international organizations, and leading academics to discuss Growth and Taxes. Business at OECD Secretary General Bernhard Welschke underlined how enhancing cooperation can help to achieve greater efficiency, certainty and effectiveness of rules, and support tax policies that foster economic growth.

USCIB Tax Committee Chair Bill Sample (Microsoft) served as a panel participant discussing the importance of tax certainty, especially by tax administrations, to encourage investment in a country. “Many non-tax factors impact business investment decisions so countries need to consider tax incentives as a lever to balance out the pluses and minuses of the non-tax factors,” said Sample during his panel. “Tax certainty may be equally or even more important than tax rates for many jurisdictions; and administrative tax certainty may be most important in many jurisdictions.”

The conference also discussed dispute prevention and approaches to support cooperative compliance, as OECD reports major progress towards a fairer and more effective international tax system, including a recently launched report to G20 leaders ahead of last week’s G20 Hamburg Summit.

Connect to Business Opportunities in Southeast Europe

Published on July 10, 2017

The markets of Southeast Europe are investing in infrastructure and market development, representing an opportunity for U.S. companies to increase sales and find a strategic foothold to grow in Europe. The region features strategic ports and bustling overland trade routes to established markets, and these individual markets are all heavily investing in infrastructure growth and market development.

Trade Winds, the largest annual U.S. government-led trade mission, will lead U.S. companies and organizations to Southeast European markets in October 2017, to connect them to promising business opportunities. In nine international Trade Winds events, the U.S. Commercial Service team has facilitated more than $240 million in export sales for U.S. companies. The visit will take place from October 16-24, 2017.  The deadline for registration is August 12.

“USCIB members looking to expand into the rapidly developing markets of Southeast Europe can take advantage of this valuable service provided by the U.S. Department of Commerce,” said Mike Michener, USCIB’s vice president for product policy and innovation. “The trip also conveniently coincides with several UN meetings and conferences in October in Rome and Geneva,” added Michener.

More information is available here or by calling Dorette Coetsee at the U.S. Commercial Service in Columbia, SC, at 803-255-2623.

G20 Reaffirms Commitment to Resist Protectionism

Published on July 10, 2017
German Chancellor Angela Merkel at G20 Summit

Leaders of the Group of 20 major economies wrapped up their summit in Hamburg, Germany by issuing a communiqué that forged compromise language over trade enforcement and trade liberalization, and advanced discussion of the digital economy.

But the Trump administration appeared isolated on climate change, with the other G20 nations recommitting themselves to action under the Paris Climate Agreement despite the U.S. pledge to withdraw.

“G20 leaders said the right words about resisting protectionism which will be essential in ensuring access to good jobs in the 21st century,” said USCIB President and CEO Peter M. Robinson, who serves as a co-chair of the B20 (Business 20) Employment and Education Task Force.

In their final statement, the G20 leaders committed to keeping global markets open, “noting the importance of reciprocal and mutually advantageous trade and investment frameworks and the principle of non-discrimination.”

German Chancellor Angela Merkel said at a closing press conference on Saturday: “I am satisfied that we managed to say clearly that markets need to remain open.”

John Danilovich, secretary general of the International Chamber of Commerce, said: “We commend the G20’s focus on strengthening the multilateral trading system. A strong, rules-based trading system is a pre-requisite to achieve the G20 leaders’ laudable ambition of making globalization work for all.”

USCIB’s Robinson also welcomed progress made by the G20 governments on enhancing digital commerce.

“We agree with the leaders statement that continued growth and innovation spurred by the digital economy will be essential to meeting the needs of people around the world,” he said. “It’s important that governments maintain a fundamentally pro-investment and pro-competition approach to the digital economy.”

But Robinson had a mixed reaction to the final language on climate change action. “Other members of the G20 are ramping up their cooperative efforts and joint action on climate,” he said. “so we encourage the United States to remain connected and involved in international collaboration for energy security and innovative technology deployment that is essential both for U.S. prosperity as well as tackling climate challenges at home and abroad.  USCIB continues to encourage the Administration to consider how to advance these efforts in the UN Climate treaty while it considers ways to re-enter the Paris Agreement.”

Regarding education and employment, Robinson emphasized the importance of educating, training and retraining to gain the necessary skills for the future of work, noting “workers need to be able to successfully adapt to change.”

USCIB Foundation to Host Event on Apprenticeships

Published on June 30, 2017

With widespread praise over the value of apprenticeships in lieu of a traditional four-year college experience, President Donald Trump and Labor Secretary Alexander Acosta have launched a series of initiatives that call on Congress to pass reforms expanding apprenticeships and to raise awareness about the viable career paths apprenticeships can offer. Apprenticeships have even become a priority for the B20 and G20 leaders.

Given the role that apprenticeships play in supporting the development of business-ready skills for youth and in realizing goals of inclusive economic growth and an equitable transition to a more sustainable world, The USCIB Foundation, which is the educational and research arm of USCIB, has partnered with Citi and the Global Apprenticeship Network (GAN) to organize a roundtable discussion focused on apprenticeship models and practice in the U.S.

The roundtable will include representatives of approximately 25 companies who are either actively implementing apprenticeship programs or are interested in getting started.  John Ladd, the administrator for the Office of Apprenticeship of the U.S. Department of Labor, will join the meeting.

Our partners in this event include:

  • The Global Apprentice Network (GAN), a business-driven alliance with the overarching goal of encouraging and linking business initiatives on skills and employment opportunities for youth – notably through apprenticeships.
  • Citigroup, committed to making a difference in youth unemployment, recently announced a global expansion of the Pathways to Progress initiative led by a Citi Foundation investment of $100 million to connect 500,000 young people, ages 16-24, to training and jobs over the next three years.