ICC Sets Digital Economy Priorities

Published on July 10, 2013

Commission members gather in Paris to assess the current digital economy landscape and discuss strategic priorities.

Business and legal professionals representing over 20 organizations came together in Paris this week at a meeting of the International Chamber of Commerce Commission on the Digital Economy.

The meeting was led by incoming chair Joseph Alhadeff, chief privacy strategist and vice president for global public policy with Oracle, who began by paying tribute to his predecessor Herbert Heitmann, former executive vice president of external communications at Royal Dutch Shell, for his long and valuable service to the commission during his six-year long tenure as commission chair.

The biannual gathering presented a chance for members to assess the current digital economy landscape and discuss strategic priorities in light of developments relating to Internet governance, data protection and privacy.

Alhadeff underscored that privacy, along with the broader issue of Internet governance and cyber-security, were priority issues for the commission along with the development of a new Global Action Plan for the Digital Economy. A ready and practical compendium of business positions, the first edition of the action plan was originally submitted on behalf of business to a ministerial conference on electronic commerce, jointly organized by the Organization for Economic Cooperation and Development and the Government of Canada in Ottawa in 1998, where it was well received as the consensus business input.

Concerning cyber-security, in particular, USCIB’s submission on the Draft EU Network and Information Security (NIS) Directive will be considered by the Commission in the coming weeks for possible advocacy.

Day two of the meeting commenced with an update by Christiaan van der Valk
and Jacques Beglinger, co-chairs of the ICC Task Force on Security and Authentication, on preparations for an ICC conference on paperless trade facilitation. Scheduled to take place in 2014, the conference aims to practically address concrete problems faced when trading digitally.

Van der Valk said: “The conference is an opportunity for ICC to be in the forefront on the paperless trade issue and to step up to represent both the business community and users. It is important that the conference is not about abstract policy but rather a chance to get business people to interact with people in government to talk about real issues that create real challenges.”

The vice chair of the commission, Gerard Hartsink, led a discussion on the possibility of developing an impactful and practical set of ICC guidelines to help executives understand and enhance company cyber-security. “As e-business grows so does cybercrime. A lot of companies, particularly small- and medium-sized enterprises are asking for help and ICC is very well placed to help them,” he said.

Eric Loeb, vice president of external affairs at AT&T and chair of the ICC Task Force on Internet and Telecommunications, wrapped up the meeting agenda by updating members of the commission on the work of the task force, as well as outcomes of meetings of the World Telecommunication Policy Forum and World Summit on the Information Society Action Lines Forum which took place in May. Loeb also looked ahead to meetings including an Internet Corporation for Assigned Names and Numbers meeting in South Africa in July, October’s Internet Governance Forum in Indonesia, and the International Telecommunication Union Plenipotentiary Conference in Busan, Republic of Korea from October 20 to November 7.

Download the third edition of the ICC Global Action Plan for the Digital Economy.

Staff contact: Barbara Wanner

More on USCIB’s Information, Communications & Technology Committee

Private-Sector Approaches to Reducing Food Waste

Published on July 8, 2013

Recognizing that approximately one third or more of food is lost or wasted every year globally, the private sector is proactively working to address this major challenge throughout the food chain. A recent Business and Industry Advisory Committee to the OECD paper, entitled BIAC Perspectives on Private Sector Solutions to Food Waste and Loss, argues that tackling food waste is a win-win approach: the private sector benefits through increased productivity and economic returns, while at the same time food security, economic growth and development are all strengthened.

However, in order to scale-up and incentivize private sector-led solutions, the BIAC paper underlines that the right enabling policy conditions need to be put in place. It will be crucial to reach a workable definition of food waste and loss, while also improving consistency in data collection around the world.

BIAC’s paper was submitted to an OECD event on June 20-21 entitled Food Waste Along the Supply Chain, as a contribution to ongoing OECD work to collect and harmonize international data on food waste.

Staff contact: Helen Medina

More on USCIB’s Food and Agriculture Committee

Business Groups Express Concerns on Senate Effort to Address IP Theft

Published on June 21, 2013

USCIB joined leading U.S. technology and business organizations in urging key senators from both sides of the aisle to take a fresh look at a proposed law on cyber-theft, to avoid any unintended consequences of harming U.S. economic security and competitiveness or hindering trade and commerce.

The groups explained their concerns in a joint letter to Senators Carl Levin (D-Mich.), Jay Rockefeller (D-W.Va.), John McCain, (R-Ariz.) and Tom Coburn (R-Okla.) — the bipartisan sponsors of S. 884, the Deter Cyber Theft Act. They wrote in part:

Theft of America’s valuable intellectual property and trade secrets through cyber espionage, or other means, is a serious economic security problem for U.S. companies and our country. In today’s dynamic marketplace, a company’s success is highly dependent on its innovations and competitive advantage, both of which are closely tied to the development and protection of intellectual property. Collectively, the U.S. tech sector spent $80 billion in 2011 protecting and securing their networks against threats, including cyber espionage, and we commend the cosponsors for their demonstrated interest in protecting intellectual property (IP) from theft.

However, we have significant concerns with S. 884, the “Deter Cyber Theft Act,” as introduced, particularly the impact the legislation may have on international commerce and trade at a time when cyber policies are of heightened importance for the global technology ecosystem, as well as the long-term impact on U.S. economic security. For that reason, we urge the cosponsors to engage in a thorough review of this and similar legislation through hearings and markup in the Senate Finance Committee, where S. 884 is currently pending.

We applaud the bipartisan interest in protecting our economically vital intellectual property. However, we believe that we can advance intellectual property protection in a way that does not have a negative impact on our nation’s economic security and competitiveness. For that reason, we look forward to working collaboratively with the cosponsors to ensure that S. 884 and similar legislation will effectively achieve these important shared goals.

Among the concerns expressed in the letter are S. 884’s potential impediment to international relations, its impact on U.S. exports, and its broad importation ban authority. Click here to read the complete letter. Signatories in addition to USCIB were BSA – The Software Alliance, the Information Technology Industry Council, the National Foreign Trade Council, TechAmerica and the U.S. Chamber of Commerce.

Staff contact: Rob Mulligan

More on USCIB’s Intellectual Property Committee

More on USCIB’s Trade and Investment Committee

Tax Conference Weighs New Scrutiny of Global Companies

Published on June 21, 2013

4537_image002 — IRS Deputy Commissioner Michael Danilack delivered keynote remarks at the conference.

Earlier this month, against a backdrop of slow economic growth and increased attention to international corporate tax practices, executives from a range of global companies met in Washington, D.C. with tax experts from the OECD and member governments at the 2013 OECD International Tax Conference. Now in its eighth year, the sold-out event was organized by USCIB in cooperation with the 34-nation OECD, which is the leading global forum for discussion of international tax policies.

The June 3-4 conference focused on the challenge of adapting longstanding international tax principles to the modern economy. At their summit in Mexico last year, G20 leaders explicitly referred to “the need to prevent base erosion and profit shifting,” or BEPS. G20 finance ministers subsequently asked the OECD to report on this issue by their meeting last February. The OECD report and follow-on action were high on the agenda at this year’s conference.

Pascal Saint-Amans, director of OECD Center for Tax Policy and Administration, led a discussion BEPS. Participants included Robert Stack, deputy assistant secretary for international tax affairs at the U.S. Treasury; Mike William, director of business and international taxation with Her Majesty’s Treasury in the U.K.; Brian Ernewein, general director of tax policy with Finance Canada; and Will Morris, chair of the BIAC committee on Taxation and Fiscal Affairs.

The panelists acknowledged that there are problems with present system, but they cautioned that current rules have worked well for decades, and adverse impacts must be carefully considered. Stack said that “respecting legal entities and contracts is critical to the functioning of the transfer pricing rules, which have worked reasonably well in a very large majority of situations.”

Michael Danilack, deputy commissioner at the Internal Revenue Service, provided keynote remarks on recent developments in the OECD’s Forum on Tax Administration, which promotes dialogue between tax administrations and identifies good tax administration practices. Click here to read his remarks.

Several panels addressed issues relating to transfer pricing, including a panel led by Joe Andrus, head of the OECD’s transfer pricing unit. Business is very concerned about proposed changes to the OECD’s transfer pricing guidelines on intangibles. The issue of entitlement to intangible-related returns is particularly difficult, especially the notion of financial investment.

Andrus said the OECD believes that financial investment in intangibles is important, and continues to wrestle with this issue. He also indicated that financial investment will be dealt with differently in the next version of the discussion draft.

The conference was co-organized by USCIB, the OECD and the Business and Industry Advisory Committee (BIAC) to the OECD, which officially represents the view of industry in the Paris-based body, and for which USCIB serves as the U.S. member federation. Supporting organizations include the International Fiscal Association, Tax Foundation, National Foreign Trade Council, Organization for International Investment, Tax Council Policy Institute, International Tax Policy Forum and Tax Executives Institute.

“Governments need clear, consistent rules to collect an appropriate amount of tax from multinational enterprises doing business in their jurisdictions,” said Carol Doran Klein, USCIB’s vice president for tax policy. “Businesses need clear and consistent rules to foster trade and investment across borders. Developing these rules requires dialogue among countries and business. The conference was an important part of that dialogue.”

Staff contact: Carol Doran Klein

Photos from the conference on Facebook

More on USCIB’s Taxation Committee

Washington Tax Conference to Weigh New Scrutiny of Global Companies

Published on May 23, 2013

Washington, D.C., May 23, 2013 – Against a backdrop of slow economic growth and increased attention to international corporate tax practices, executives from a range of global companies will meet with tax experts from the OECD and member governments at the 2013 OECD International Tax Conference, June 3-4 in Washington, D.C.

Now in its eighth year, the sold-out conference is organized by the United States Council for International Business (USCIB) in cooperation with the 34-nation OECD, which is the leading global forum for discussion of international tax policies.

“The OECD is a valuable source of guidance on sensible policies and regulation, especially on the tax front,” said Rob Mulligan, USCIB’s senior vice president for policy and government affairs. “Decisions on tax policy can have a major impact on cross-border investment flows, and policy makers must make wise choices to maximize economic growth, job creation and development.”

The conference will focus on the challenge of adapting longstanding international tax principles to the modern economy. At their summit in Mexico last year, G20 leaders explicitly referred to “the need to prevent base erosion and profit shifting,” or BEPS. G20 finance ministers subsequently asked the OECD to report on this issue by their meeting last February. The OECD report and follow-on action will be high on the agenda at this year’s conference.

Related issues up for discussion include transfer pricing of intangibles, jurisdiction to tax issues and tax transparency. Efforts to integrate the views of emerging and developing economies into the OECD’s work are also on the program.

Speakers at the two-day event will include:

Pascal Saint-Amans, director of the OECD’s Center for Tax Policy and Administration
Robert B. Stack, deputy assistant secretary for international tax policy, U.S. Treasury
Will Morris, director of global tax policy, GE International
Mike Williams, director of business and international tax, Her Majesty’s Treasury, U.K.
Bill Sample, corporate vice president for worldwide tax, Microsoft

“Governments need clear, consistent rules to collect an appropriate amount of tax from multinational enterprises doing business in their jurisdictions,” said Carol Doran Klein, USCIB’s vice president for tax policy. “Businesses need clear and consistent rules to foster trade and investment across borders. Developing these rules requires dialogue among countries and business. This conference is an important part of that dialogue.”

The conference is co-organized by USCIB, the OECD and the Business and Industry Advisory Committee (BIAC) to the OECD, which officially represents the view of industry in the Paris-based body, and for which USCIB serves as the U.S. member federation. Supporting organizations include the International Fiscal Association, Tax Foundation, National Foreign Trade Council, Organization for International Investment, Tax Council Policy Institute, International Tax Policy Forum and Tax Executives Institute. Details are available at www.uscibtax.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. With a unique global network encompassing leading international business organizations, including BIAC, USCIB provides 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.

Contact:
Jonathan Huneke, VP communications, USCIB
+1 212.703.5043 or jhuneke@uscib.org

Conference agenda and other information

News Brief: Report Calls for Action to Stop Counterfeiting in Free Trade Zones

Published on May 15, 2013

A new report from ICC’s Business Action to Stop Counterfeiting and Piracy (BASCAP) initiative calls for increased regulation and better management of free trade zones (FTZs) to stop the alarming trend of the use of FTZs to facilitate the manufacture, distribution, and sale of counterfeit products.

The report, Controlling the Zone: Balancing facilitation and control to combat illicit trade in the world’s Free Trade Zones, looks at the increasing vulnerability of FTZs to criminal activities that are facilitating the global trade of counterfeit and pirated products. It summarizes the circumstances that have enabled the exploitation of FTZs, including an examination of weaknesses in international agreements, national legislation and judicial enforcement.

National governments encourage the creation of FTZs to increase trade and attract investment by removing or reducing duties and tariffs, softening customs controls and largely decreasing oversight in FTZs. These incentives have simultaneously made it easier for criminals to set up illicit operations, with increasing evidence showing that FTZs are being exploited to facilitate the international trade in counterfeit and pirated goods.

Last year, USCIB welcomed the Obama administration’s rollback of planned changes to the rules governing U.S. free trade zones. USCIB had earlier said some of the proposed changes would impose significant hurdles for exporters.

Read more and download the report on the ICC website.

Staff contacts: Helen Medina and Nasim Deylami

More on USCIB’s Intellectual Property Committee

More on USCIB’s Customs and Trade Facilitation Committee

Business Playing a Big Role in Leadup to Key Internet Forums

Published on May 14, 2013

The International Chamber of Commerce, the global business body which USCIB represents in the United States, welcomed the renewed strong representation of business in a multi-stakeholder advisory group responsible for steering preparations for the 8th Internet Governance Forum (IGF) – an open forum for policy dialogue on issues of Internet governance that will take place this October in Bali, Indonesia.

Nine members of ICC’s Business Action to Support the Information Society (BASIS) initiative secured a place on the MAG, a special advisory group to the UN secretary general representing Internet interest groups from governments, business, civil society and the Internet technical community. These included, from USCIB’s membership, Jeff Brueggeman, vice president-public policy, deputy chief privacy officer , AT&T, Theresa Swinehart, executive director, global Internet policy, Verizon, and Patrick Ryan, policy counsel, open Internet, Google. The United Nations confirmed 56 MAG members overall.

Greening the Agro-Food Chain: Better Policies Are Needed

Published on May 2, 2013

Last week in Paris, business executives and government policy makers held their first OECD workshop on how to make the agro-food chain greener and more sustainable for all.

The topic of green growth in the food and agriculture sector was at the core of discussions – organized by the OECD secretariat and BIAC, the Business and Industry Advisory Committee to the OECD, part of USCIB’s global network – which were held under the banner of “Green Growth in the Agro-food Chain: What Role for the Private Sector?”

A number of USCIB members joined Helen Medina, USCIB’s senior director of product policy and innovation, at the workshop. Participants agreed that business is the leading driver of agricultural productivity and resource efficiency, but that sound policies are necessary pre-requisites in order to realize the full potential of greening the agro-food chain.

The growing challenges facing the sector were addressed, such as climate change, rising demand for food, shifting diets, soil degradation and competing demands for vital resources such as water. These challenges oblige the sector to do more with less – i.e., increase agricultural productivity to meet growing demand, but in a sustainable manner.

USCIB members highlighted several areas that OECD governments can work on to promote sustainability, including:

long-term, fact-based, risk-based, predictable and interpretable regulatory processes
good governance and well-functioning institutions (notably to protect intellectual property and land rights)
international and cross-discipline collaborations in the area of R&D and opportunities for international cooperation in basic research
closer cooperation between the public and private sector
fostering trade and investment liberalization to facilitate the development and diffusion of technology
increasing access to financial services in rural areas and for farmers in order to increase capital investment
an overall enabling policy framework that provides adequate incentives to create and adopt new technologies in all areas.

“We must collectively look at the problems to identify and answer the questions.” said Denise Knight, director of sustainable agriculture with The Coca-Cola Company, In remarks to the workshop. “Coke’s business strategy includes taking a holistic and integrated approach that recognizes the value of the services provided by intact ecosystems. We believe in working with partners across sectors, business, government, and civil society, to share our expertise and work on coordinated approaches to resolve problems. But, we also look to governments to reduce trade barriers and streamline the regulatory environments so that we can fully realize our strategy for sustainability.”

Other participating USCIB members included Croplife USA, McDonald’s and Monsanto.

Business representatives reminded governments of the importance of measuring performance in order to track progress. The OECD can play an essential role in greening the agro-food chain by generating data, sharing best practices and encouraging international and economy-wide policy cooperation and dialogue with the private sector.

Staff contact: Helen Medina

More on USCIB’s Environment Committee

More on USCIB’s Food and Agricultural Working Group

Oracle’s Alhadeff Is New Chair of ICC Digital Economy Commission

Published on April 30, 2013

Paris and New York, April 30, 2013 – The International Chamber of Commerce (ICC) has announced the appointment of Joseph Alhadeff as the new chair of the ICC Commission on the Digital Economy, according to the United States Council for International Business (USCIB), which serves as the world business organization’s American national committee.

Alhadeff, chief privacy strategist and vice president for global public policy at Oracle Corp., has served as vice chair of the ICC commission since 2002. He will take over from Herbert Heitmann, executive vice president of external communications at Royal Dutch Shell, who will step down from the post at the commission’s summer meeting in Paris.

“Economic growth and continued societal opportunities created by the Internet and other ICTs bring new responsibilities that require the global cooperation of all stakeholders,” said Alhadeff, who also serves as vice chair of USCIB’s Information, Communications and Technology (ICT) Committee. “We have a responsibility to bring the voice of business to the table, based not only on the experiences of the business community but also on what this community has heard and learned from other stakeholders in government, civil society and the Internet technical community.”

The ICC Commission on the Digital Economy develops policy positions for the Internet and ICTs on behalf of users, providers and operators of information technology. As chair, Alhadeff will help ensure that the commission provides a forum for members to share insights on timely developments in the ICT field and establish global consensus policy positions on behalf of the business community to help foster the sustainable growth of the ICT sector.

Alhadeff is responsible for coordinating and managing Oracle’s international electronic commerce, privacy and Internet-related policy issues. He plays an important leadership role in guiding USCIB’s work on privacy and cyber-security policy, drawing on his prominent roles in several influential international organizations dedicated to Internet policy, security and privacy. Among these, Alhadeff chairs the Information Communications and Computing Policy Committee at BIAC, the Business and Industry Advisory Committee to the OECD, which represents industry views to the 35-nation Organization for Economic Cooperation and Development.

More information on the International Chamber of Commerce is available at www.iccwbo.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. With a unique global network encompassing leading international business organizations, including ICC and BIAC, USCIB provides business views to policy makers and regulatory authorities worldwide, and works to facilitate international trade and investment. More at www.uscib.org.

Contact:
Jonathan Huneke, USCIB
+1 212.703.5043, jhuneke@uscib.org

More on USCIB’s Information, Communications and Technology Committee

USCIB Members Help Launch Inaugural Meeting of OECD Security Experts Group

Published on April 10, 2013

USCIB members made important contributions at the April 8 inaugural meeting in Paris of a special OECD Experts Group convened to consider possible revisions the OECD’s 2002 “Guidelines for the Security of Information Systems and Networks.” They said the principles set forth in the 2002 guidelines remain relevant, but should be updated and supplemented to reflect the complexity of today’s world, the broader range of actors involved, and increased need for coordination and cooperation.

The group, led by Joe Alhadeff, vice president and chief privacy officer with Oracle (who serves as vice chair of USCIB’s ICT Policy Committee as well as chair of BIAC’s Technology Committee), included representatives from AT&T, Centre for Information Policy Leadership,Cisco, DLA Piper, Intel, Juniper Networks, and Verizon, supported by Barbara Wanner, USCIB’s vice president for ICT policy.

In particular, USCIB members urged that a number of concepts be incorporated into any update of the OECD Guidelines. These include the following:

Information security policies should be developed on a global, voluntary, consensus basis.
Government policies should be “technology neutral,” focusing on the desired process or security-related outcome, and avoid dictating or mandating any specific technology solution or product
In order to enable continued innovation, policy makers should not unnecessarily restrict the cross-border flow of technologies.
In light of industry’s fundamental role in the digital economy, public-private partnerships should be a key feature of national policy as well as ongoing information security discussions at the international level.
Fostering a trusted, global, and interconnected digital economy requires participation by all countries in a global dialogue aimed at harmonizing policy approaches to security.

The meeting also addressed the importance of establishing a risk-based approach to security as a centerpiece of the OECD Guidelines. In addition, while the language should be “high-level” in scope, participants agreed that the guidelines also should include sufficient information enabling policy makers to inform those at the operational level how to implement the concepts.

The Experts Group will continue its work for the better part of 2013, using online capabilities to facilitate dialogue as well as meeting on the sidelines of other OECD or international gatherings. The group will present its final report of recommendations at the December 2013 meeting of the OECD’s Working Party on Information Security and Privacy.

USCIB’s CEO on Cybersecurity Podcast

Against the backdrop of rising concern over cyber-security, USCIB President and CEO Peter M. Robinson took part in a recent video chat looking at what policy makers and business executives need to know to address the threat.

Organized by Lumension, a leading provider of endpoint management and security, the chat addressed personal privacy, espionage, cyber-warfare, and existing or planned regulation in the U.S. and elsewhere. Robinson discussed some of the main international efforts to address cyber-security and related issues, and the broad principles at stake.

Other participants included Pat Clawson, Lumension’s chairman and CEO, Richard M. George, senior advisor for cyber-security at the Johns Hopkins University Applied Physics Laboratory, and Richard Stiennon, founder and analyst with IT Harvest.

You can access a podcast of the video chat by clicking here.

Staff contact: Barbara Wanner

More on USCIB’s Information, Communications and Technology Committee

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