USCIB Welcomes Adoption of OECD Principles on Government Access to Personal Data Held by Private Entities

Gran Canaria, Spain, December 14, 2022—Ministers of OECD countries responsible for digital economy policy today adopted a ground-breaking Declaration on Government Access to Personal Data Held by Private Entities. This action culminated two years of multilateral and multistakeholder discussions in the OECD Committee on Digital Economy Policy, which for the first time brought together privacy, national security and law enforcement officials.

The Declaration articulates principles that are common to OECD members with strong democratic traditions of respect for human rights and the rule of law. It offers clarity and transparency around these shared values, which, in turn, increases trust among governments. For businesses and internet users, the Declaration creates greater confidence in the sufficiency of protections that are guaranteed when individuals’ data is being transferred to a third country or accessed by a third country’s government.

This Declaration comes at a time when growing mistrust in data and data flows feeds uncertainty that has discouraged participation of individuals, businesses, and even governments in the global digital economy and undermined economic recovery efforts following the COVID-19 pandemic and global supply chain disruptions. As the G7 Trade Ministers Digital Trade Principles expressed last year, achieving this consensus among OECD member countries will now help provide greater transparency and legal certainty to cross-border data flows, and will support the transfer of data between jurisdictions by commercial entities and result in positive economic and social impacts.

USCIB members, working under the aegis of Business at OECD (BIAC) and in collaboration with the International Chamber of Commerce (ICC), actively contributed evidence and recommendations to inform the TGA process, outlining principles and safeguards for government access to personal data that respect individual rights, promote shared democratic values, and are based on common practices.

“The TGA Principles establish a solid foundation for building trust in the digital ecosystem, similar to the OECD Privacy Guidelines,” said USCIB Vice President for ICT Policy Barbara Wanner, who was on the ground in Gran Canaria. “Excitement about the TGA Principles and the sense of achievement in the Ministerial plenary were palpable. By creating more confidence in data flows, the Principles ultimately will support USCIB members’ global commercial activities not to mention produce societal benefits for all,” she added.

See this link for further information about the OECD Digital Ministerial.

Business Contributions to the OECD CDEP process:

Joint Business Statement on the OECD Committee on Digital Economy Policy’s work to develop an instrument setting out high-level principles or policy guidance for trusted government access to personal data held by the private sector

ICC White Paper on Trusted Government Access to Personal Data Held by the Private SectorCenter for International Economic Collaboration

CFIEC Report on Forming Rules for Government Access: Toward Optimizing the International Flow of Personal and Non-Personal Data

CONTACT:
Barbara Wanner
VP, ICT Policy
bwanner@uscib.org

Kira Yevtukhova
Deputy Director, Communications and Marketing
kyevtukhova@uscib.org

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. USCIB is the U.S. affiliate of the International Chamber of Commerce (ICC), the International Organization of Employers (IOE) and Business at OECD (BIAC). More at www.uscib.org.

USCIB Co-Hosts Webinar on Brazil and Peru’s OECD Accession Process

USCIB and Baker McKenzie co-hosted an informational webinar on December 6 regarding Brazil and Peru’s accessions to the OECD. Approximately 140 private sector attendees, including USCIB members, participated in the meeting. USCIB Director for Trade, Investment and China Alice Slayton Clark outlined the OECD accession timeline, including roadmaps, initial memorandum, technical review and political assessment.

She also informed industry that the accession process provides a unique opportunity for leveraging business interests.  The OECD will be undertaking a rigorous assessment of the candidate country’s alignment with the relevant OECD instruments, policies and practices as well as with other rules, standards and benchmarks such as WTO agreements and other international conventions.

“This offers an excellent opportunity for companies to resolve a range of current business concerns with these candidate countries,” and USCIB is in an excellent position to help, Clark stressed. “As a member of Business at OECD (BIAC), we’re uniquely able to influence the committees, staff and delegations at the OECD who are undertaking the OECD accession reviews.”

Attorneys from Baker McKenzie Peru and Trench Rossi Watanabe* in Brazil also gave an analysis of the current political landscape in both countries with a focus on the developments or changes that are needed to achieve accession to the OECD, specifically related to trade and tax matters.

A recording of the event is now live.

Be sure to check out USCIB’s new webpage on OECD accession, providing members with latest information, including accession events, background papers and advocacy documents.

USCIB Policy Experts Provided Extensive Input Into the B20

This year’s B20 Summit, held November 13-14, embraced the theme of ‘Advancing Innovative, Inclusive and Collaborative Growth’ in support of the G20 theme of ‘Recover Together, Recover Stronger’. The B20 Summit brought together world business leaders representing leading multinational corporations. In the lead up to the B20 Summit, USCIB policy experts worked closely with USCIB members through various B20 Task Forces, such as those focused on digitalization, trade and investment, integrity and compliance as well as illicit trade and illicit finance. 

USCIB Vice President for ICT Policy Barbara Wanner participated on the B20 Indonesia Digitalization Task Force on behalf of USCIB members. Wanner provided inputs to the Digitalization Task Force report aimed at ensuring that the substance aligned with USCIB contributions to the OECD digital work and the UN Global Digital Compact. According to Wanner, the focus of USCIB substantive inputs – which largely were taken on board by B20 Indonesia – were aimed at carrying through the themes of “data free flows with trust,” opposition to data localization requirements, risk-based and interoperable approaches to digital security, and the importance of multistakeholder participation in global digital consultations.  

USCIB Director, Investment, Trade and China Alice Slayton Clark served on the B20 Trade and Iinvestment Task Force and provided recommendations on behalf of USCIB members in four key areas: promote open, fair and inclusive post-pandemic global trade and investment policies; facilitate innovation and digitalization that supports international development and avoids future crises; encourage inclusivity in global supply chains; and ensure trade and investment drive greener and more sustainable development. USCIB Director for Customs and Trade Facilitation Megan Giblin also played a key role in advancing inputs and securing inclusion of customs and trade facilitation language to reflect member and Committee priorities.  

Meanwhile, USCIB Senior VP, Innovation, Regulation, and Trade Brian Lowry participated as a Member of the B20 Indonesia Integrity & Compliance Task Force alongside USCIB Policy Manager for Environment and Sustainable Development Agnes Vinblad, supporting as a deputy member of the task force. Giblin also served a critical role in coordinating efforts to gather USCIB member inputs, reflecting member and Committee priorities, on the inclusion of language specifically pertaining to illicit trade and illicit finance.  

Working with David M. Luna, chair of the USCIB Anti-Illicit Trade Committee, USCIB submitted comments pertaining to Policy Recommendation 3 to foster agility in counteract measures to combat money laundering/terrorist financing risk and Policy Action 3.1 to refocus on money laundering/terrorist financing risk factors identification. USCIB’s submission on language recognizing the “link between the sustainability agenda, illicit trade/illicit finance, and financial crime” was adopted by the task force and is included in the final policy paper. Additionally, commentary submitted by USCIB to include language on environmental crime and trade-based money laundering is also reflected in the final policy paper. 

USCIB Competition Meeting Focuses on ICN, Antitrust Enforcement Priorities in Brazil

The USCIB Competition Committee held its semiannual meeting November 9, featuring Federal Trade Commission Counsel for International Affairs Paul O’Brien for an update on the work of the International Competition Network (ICN). Comprised of 142 competition authorities from around the globe, the ICN is a forum for sharing and advancing best practices in the field of antitrust. Through working groups, conferences and workshops, the ICN foments common understanding and harmony on voluntary recommendations in competition law. “It is clear the ICN is a trusted resource for government officials around the globe hoping to harmonize norms and principles as well as industry looking for clarity and convergence in practices,” said USCIB Director for Investment, Trade and China Alice Slayton Clark.

Committee members were also updated on antitrust enforcement priorities in Brazil by economist Silvia Fagá and attorney Milena Mundim of Demarest law firm, both members of International Chamber of Commerce Brazil. They predicted that merger enforcement may increase along with regulation of hate speech on media platforms under the incoming presidency of Luiz Inácio “Lula” da Silva, the populist leftist leader from the 2000s. Brazil’s competition authority, the Administrative Council for Economic Defense (CADE), will continue to scrutinize digital platforms, with more active use of interim measures, they asserted.  As the economy recovers, expect to see more merger activity especially in the healthcare market in Brazil.

Chair of Business at OECD (BIAC) Competition Committee John Taladay (Baker Botts) highlighted key activities, including OECD Competition Week taking place November 28-December 2.  USCIB Competition Committee Chair and Vice Chair of the ICC Competition Commission Dina Kallay (Ericsson) updated USCIB members on task force developments, including an update to the ICC’s ten year old antitrust compliance tool kit. USCIB also provided a briefing on the minor competition changes anticipated to the OECD Guidelines on Multinational Enterprises.

USCIB Outlines Priorities for UN Climate Meetings (COP27) in Letter to US Government

USCIB policy experts are now at the 27th Conference of the Parties of the UN Framework Convention on Climate Change (UNFCCC COP27) in Sharm El-Sheikh, Egypt. In advance of COP27, USCIB sent a letter on behalf of USCIB President and CEO Peter Robinson to Special Presidential Envoy for Climate Change John Kerry, setting out USCIB members priorities for COP27. The letter can be downloaded here, or viewed directly below.

Dear Special Presidential Envoy Kerry:

Addressing the multiple challenges of climate change in all their complexity, alongside advancing food and energy security, are interconnected imperatives. The United States Council for International Business (USCIB) welcomes the Administration’s leadership as it has engaged with the international community for ambition and progress on these linked issues en route to the 27th Conference of the Parties of the UN Framework Convention on Climate Change (UNFCCC COP27) in Sharm El-Sheikh next week.

As Administration officials have emphasized, COP27 is a chance to focus on “Implementation Plus”– win-win opportunities to incent investment and create jobs for shared climate -friendly prosperity, not just from governments but across society. Implementation Plus approaches should catalyze innovation and trade to deploy U.S. private sector technology and partnerships on mitigation and adaptation. Implementation Plus oriented COP outcomes should encourage synergies between climate and nature protection agendas and actions. And those outcomes should recognize and mainstream supporting frameworks for voluntary pledges from business and other non-state actors.

In particular, USCIB members look for progress at COP27 in the following areas:

  • Just transition for workers, society, and employers: Further discussions of just transition should reflect the fundamental role of social dialogue, and recognize the impacts and opportunities for workers, societies, and employers. In this regard, representative employers’ federations are essential to sound climate change and just transition policy and its implementation.
  • Integrated Approach to Adaptation and Resilience: Incentives for private sector investment are needed to direct funds not only to infrastructure, but also to other key societal sectors for adaptation and resilience, such as agriculture and food production, supply chain, and access to the internet.
  • Enhanced Substantive Engagement of Business and other Stakeholders: The involvement of business in all its diversity is more important than ever to deliver on Paris, Glasgow, and Sharm El-Sheikh commitments. The Administration has consistently supported the inclusion of all stakeholders in the UNFCCC and this is more crucial than ever at COP27. We urge you to continue to speak out strongly for enhanced and meaningful inclusion of business with all stakeholders, and oppose any measures that would discriminate against or exclude any constituency.

In Glasgow, despite unprecedented business commitments to reduce GHGs and mobilize financial and technical resources, COP26 decisions did not mention the private sector apart from a reference to finance. For USCIB, this sent the wrong signal, and contradicts a record of real achievement and commitment by the private sector to do more.

The Administration has encouraged business from every sector to step up on climate change and join diverse U.S. climate initiatives for ambition, green energy, green purchasing, and more. USCIB member companies have responded positively, and many have additionally launched their own actions to keep 1.5 alive, commit to net-zero and meaningfully contribute across numerous other climate-relevant areas.

We ask therefore for your support to include acknowledgement in COP27 outcomes of the distinct role of business, recommending increased dialogue and partnership with the private sector, and consulting with business and employers to hear views and recommendations on policy options under the UNFCCC.

USCIB members will bring their commitment and solutions to tackle climate change to Sharm El Sheikh, and USCIB looks forward to supporting the U.S. delegation at these meetings. We will be joining forces with our global sister organizations, the International Chamber of Commerce (ICC) and the International Organization of Employers (IOE) to achieve outcomes for broad deployment of lower carbon options across all forms of energy, to strengthen market-based approaches to tackle mitigation and adaptation, and to take international cooperation to a next level of ambition and impact.

Sincerely,
Peter M. Robinson
President & CEO

USCIB Advocates Member Interests at OECD Trade and Investment Committees

Business at OECD (BIAC) Trade Committee led by Pat Ivory (center). Also in photo: Marion Jansen, Director of the OECD Trade Committee and USCIB’s Alice Slayton Clark

USCIB joined Business at OECD (BIAC) to advocate member interests in Paris at the October meetings of the OECD Trade and Investment Committees.

Under consideration by the OECD Trade Committee were the trade impacts of the war in Ukraine and the process for considering the OECD accession candidates—Brazil, Bulgaria, Croatia, Peru and Romania. According to USCIB Director for Trade, Investment and China Alice Slayton Clark, who attended the meetings in Paris, of concern is managing OECD overload from undertaking market openness reviews for all five candidates, with the European countries likely to be fast-tracked due to their adherence to the European Single Market and Common Commercial Policy. BIAC stressed the importance of a robust role for business throughout the accession process, having already presented preliminary trade, tax and other business concerns for each candidate.

At the OECD Investment Committee meetings, BIAC urged countries to safeguard an enabling environment for private investment as the world is increasingly unstable due to national security concerns, and as the global rules-based trading system is under challenge.

“This is an imperative as private investors are pressed more than ever to contribute to COVID recovery and help emerging economies combat climate change, develop clean energy, improve healthcare and infrastructure, and bridge the digital divide,” asserted Clark. BIAC also urged OECD to pay special attention to in-and outbound investment screening, and to catalog strategies countries have developed to deal global value chain vulnerabilities.

USCIB used the opportunity to urge OECD staff and U.S. policymakers to promote the moratorium on customs duties on electronic transmissions (e-commerce moratorium) through market openness reviews of OECD candidates. The OECD was also encouraged to provide additional studies to help inform the WTO Joint Statement Initiative on E-commerce work program on the benefits of the moratorium for digital services in emerging economies.

Concurrently, OECD held its annual Global Trade Forum focused on the intersection of trade and responsible business conduct (RBC), with significant discussion about promoting more coordination and transparency as states and international organizations increasingly impose mandatory and voluntary RBC measures on supply chains. While RBC is good for business, BIAC warned policymakers to provide proper balance and not overload trade agreements with environmental and social expectations that countries cannot achieve through rule of law enforcement.

USCIB Pleased With Many of the Outcomes of International Telecommunication Union Meetings

The UN International Telecommunication Union (ITU) Plenipotentiary (PP-22) wrapped up on October 14 with several Resolutions, “Final Acts,” many of which are both supported by and important to business. These Resolutions determine the direction of the Union, its finances and its activities for the next four years. Some of the Resolutions that were of keen interest to USCIB members were centered around Internet Protocol (IP)-based networks, the role of multistakeholder engagement and Artificial Intelligence (AI) technologies.

Of major relevance to the U.S. business community was the election of new leadership posts – mostly notably the new ITU Secretary General Doreen Bogdan-Martin, who USCIB actively supported. The other elected positions included Deputy Secretary General and the new Directors of the Standardization, Development, and Radiocommunication Bureaus.

Resolution 101 on Internet Protocol (IP)-based networks ultimately recognized the importance of ITU cooperation with the Internet Society, the Internet Engineering Task Force, UNESCO and other UN entities to ensure appropriate coordination on IP network issues. USCIB did not support any modifications to previous text, believing that this Resolution was sufficiently broad and flexible to address a range of issues. According to USCIB VP for ICT Policy Barbara Wanner, who attended the Plenipotentiary in Bucharest, U.S. negotiators were able to hold the line on more ambitious proposed changes to this resolution.

The ITU’s role with respect to international public policy issues pertaining to the Internet and the management of Internet resources, including domain names and addresses was addressed in Resolution 102.

“USCIB supported greater emphasis on the importance of multistakeholder engagement, including opening the Council Working Group on International Internet Public Policy to Sector Members, and elevating the reference to organizations involved in the technical aspects of the Internet (e.g., ICANN, IETF, RIRs) into the body of the Resolution.”

The Union recognized the importance of the private sector role in expanding development of the Internet and the need for greater reciprocal collaboration and coordination between the ITU and the aforementioned organizations. Throughout the resolution, the Union also acknowledged the need for stakeholder input concerning the management of Internet resources. Ultimately, however, ITU members stopped short of opening the CWG-Internet to Sector Members.

According to Wanner, there is also a new resolution on AI technologies and telecommunications/information and communication technologies.

“USCIB has been wary of efforts to expand the ITU work program to include AI and other emerging technologies on grounds that, if not appropriately scoped, the policy outcomes could stifle innovation and not be technology-neutral,” said Wanner.

“Recognizing the keen interest of many ITU members in AI, however, we supported an approach that would examine how the application of AI to telecommunications/ICTs has the potential to make telecommunications/ICTs more efficient and to facilitate universal access to telecommunications/ ICT,” added Wanner. “We felt this was within the mandate and core competencies of the Union related to telecommunications/ICTs. We are especially grateful for the effective advocacy of the U.S. Government on this topic.”

USCIB Attends WTO Public Forum, Meets with WTO Director General

Stacy Dieve (Cisco), Megan Funkhouser (ITIC), Alice Slayton Clark (USCIB)  with WTO Director General Ngozi Okonjo-Iweala (center) with WTO Deputy Director-General Anabel González

USCIB was in Geneva for the WTO Public Forum last week, advocating with USCIB members and other industry associations for the launch of a new round of tariff eliminations under the Information Technology Agreement (ITA-3) and for permanent extension of moratorium on customs duties on electronic transmissions.

The meetings with WTO officials, including Director General Ngozi Okonjo-Iweala, and WTO missions made progress in laying the ground work for member objectives, but also provided important insights into how USCIB and member companies can navigate the challenges ahead.

USCIB member companies also met with Representative Director of the International Chamber of Commerce (ICC) in Geneva Crispin Conroy to discuss the WTO landscape and USCIB/ICC international trade priorities. USCIB is working closely with ICC on WTO workstreams including with respect to the Joint Statement Initiative on Electronic Commerce, the e-commerce moratorium, the Trade and Environmental Sustainability Structured Discussions (TESSD) and WTO reform.

USCIB and ICC remain strong advocates for a more formal role for business and civil society input at the WTO, especially as the forum becomes one more focused on policy discussion.

USCIB Comments on China’s WTO Commitments: Urges Protection of IP, Voices Concern Over 301 Tariffs

USCIB submitted comments to the U.S. Trade Representative regarding China’s WTO compliance with its World Trade Organization commitments, raising a broad array of concerns including in the areas of digital, intellectual property rights (IPR), regulatory policies, competition, transparency and standards.

The comments urge the U.S. government to continue to press for a complete suspension of all existing and proposed measures involving trade-restrictive requirements in the digital sector, where China has enacted and enforced a variety of trade-restrictive and overly prescriptive requirements on information technology (IT). In the area of intellectual property, USCIB urges the U.S. government to continue to press for increased protections, as well as enhanced and efficient enforcement options, better coordination and enforcement by Chinese authorities, and more severe penalties for infringement of IPR. The comments add that concerns about Chinese behavior even extend beyond WTO compliance issues to areas such as government procurement.

USCIB also raises concerns over the Section 301 tariffs imposed against Chinese imports, noting that these tariffs have caused harm to domestic industry and done little to date to change Chinese behavior. The tariffs cover over $370 billion in goods, raising the cost of doing business in the United States and increasing prices for U.S. families and workers, a hardship exacerbated by today’s inflationary environment. According to USCIB Director for Investment, Trade and China Alice Slayton Clark, “as these tariffs continue, they create uncertainty for businesses and negatively impact U.S. companies’ ability to invest in their companies to innovate new products, hire more American workers, and remain competitive globally.” It is essential that the United States adopt a robust strategy that does not only rely on the use of punitive tariffs to achieve its objectives with China.

“Engagement with China can be challenging but China’s importance in the global economy provides a strong incentive for the United States to engage on all fronts to find solutions and foster stability and growth in the relationship,” according to Clark. The United States must not only continue to promote U.S. interests in the WTO rules-based international trading order, but also work with allies to address common concerns with respect to China, and work bilaterally with China to resolve challenges.

USCIB Applauds Historic Election of Doreen Bogdan-Martin to ITU Secretary General

Doreen Bogdan-Martin
Source: US Mission to Geneva

New York, NY, September 29, 2022–The U.S. Council for International Business applauds the resounding victory today of Doreen Bogdan-Martin to serve as the new Secretary General of the International Telecommunication Union (ITU). ITU member states made history by elevating Ms. Bogdan-Martin to lead the organization the next four years — the first-ever female to serve as ITU Secretary General. Ms. Bogdan-Martin garnered 139 votes; Rashid Ismailov, a former Russian telecom official, secured 25. The vote was taken by secret ballot at the 21st meeting of the ITU Plenipotentiary (PP-22), September 26-October 14, in Bucharest, Romania.

“After 150 years, we shattered the glass ceiling,” Secretary General Bogdan-Martin said after the results were announced. The full text of her acceptance speech is available at this link.

Barbara Wanner, USCIB’s Vice President of ICT Policy, who participated in the PP-22 as a member of the U.S. Government delegation, concurred that the election represented a truly historic development. “The sheer breadth of support for Ms. Bogdan-Martin reflected a recognition across the Union that she is the right person for the job as the information and communication technology (ICT) landscape continues to evolve,” Wanner said.

July 13, 2022 reception in NY during UN HLPF. Left to right: Barbara Wanner, Doreen Bogdan-Martin, Peter Robinson

USCIB was one the earliest organizational supporters of Ms. Bogdan-Martin’s candidacy. “It was readily apparent to our members that she possesses both the substantive knowledge and leadership skills to place the ITU at the forefront of global efforts to drive meaningful connectivity for the unconnected, broaden and deepen partnerships to accelerate digital transformation, and support greater organizational accountability,” Wanner noted. Thanks to members’ generous support, USCIB boosted Ms. Bogdan-Martin’s candidacy by hosting a special reception on July 13 in New York to enable her to engage informally with many UN delegates and share her leadership vision for the ITU.

In addition to electing the Secretary General and other key leadership positions, the ITU Plenipotentiary, which is held every four years, enables the ITU’s 193 Member States to conclude key agreements on the ITU’s strategic and financial plans and determine the direction for ICT issues under its remit for the next four years.

Other highlights of the first week of the PP-22 included:

  • An announcement by the U.S Government that it plans to increase its assessed contribution rate to the ITU from 30 contributory units to 35 contributory units, which would represent an additional 1.59 million Swiss francs per year to support the work of the ITU; and
  • Establishment of numerous ad hoc committees and informal consultations to build consensus on proposed resolutions on cybersecurity, Internet-related issues, Artificial Intelligence (AI), and space policy issues of priority interest to USCIB 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. USCIB is the U.S. affiliate of the International Chamber of Commerce (ICC), the International Organization of Employers (IOE) and Business at OECD. More at www.uscib.org.