Competitiveness and Innovation Archives

ICC Emphasizes Business Priorities at UN Information Society Event

Published on May 21, 2012

BASIS Chair Urges Greater Collaboration with Business on Internet-related Public Policy

Internet access can empower the marginalized and improve the lives of millions of people – but governments must work with business and other stakeholders to put the necessary conditions in place. This was the message delivered by Subramanian Ramadorai, chair of ICC’s BASIS initiative, to the UN Commission on Science and Technology for Development (CSTD) during WSIS week in Geneva.

Ramadorai said governments and international institutions should ensure their Internet policy related decision-making activities were open and inclusive to all stakeholders on an equal footing. “All efforts to continue to advance enhanced cooperation should be based on the commitment to openness, inclusiveness, and outreach.”

The extent to which business and other stakeholders should be involved in public policy issues pertaining to the Internet, referred to as “enhanced cooperation,” was discussed during a CSTD consultation.

The International Chamber of Commerce and its BASIS (Business Action to Support the Information Society) initiative actively participated in the post- UN World Summit on the Information Society (WSIS) activities, held May 14-18 in Geneva. The week-long series of events included the WSIS action lines forum, open consultation for the preparations of the Internet Governance Forum (IGF) and meetings of the IGF multi-stakeholder advisory group, as well as a consultation on ‘enhanced cooperation’ convened by the UN Commission on Science and Technology for Development. All of these dialogues are important to the success of the WSIS and its outcome.

Organized by the International Telecommunication Union, UNESCO, the UN Development Program and UNCTAD, the forum gathered representatives of governments, civil society, business and the Internet technical community to share experiences regarding initiatives and concrete projects that are helping countries more effectively harness the power of information and communication technology (ICTs) for the common global good.

“The tangible impact of ICTs on economic growth and opportunity is a shared objective,” said John Davies, vice president of Intel Corporation. “Simply put, countries with effective ICT policies tend to have higher productivity and countries with ineffective ICT policies tend to have lower productivity.

Click here to read more on ICC’s website.

Staff Contact: Barbara Wanner

More on USCIB’s Information, Communications and Technology Policy (ICT) Committee

 

At Rio Meetings, USCIB Represents Business Interests in Global Antitrust

Published on May 11, 2012

4322_image002As U.S. companies are increasingly subject to foreign regulators and the practices of non-U.S. investigative bodies, it is imperative to ensure adequate dialogue between the private sector and government antitrust enforcers, both in order to keep the lines of communication open and to ensure that industry is aware of the ever-evolving antitrust regulations to which they may be subjected.

To that end, Charlene Flick, USCIB’s director of intellectual property and competition, took part in three key meetings in Rio de Janeiro in April: the International Competition Network (ICN) annual conference, an International Chamber of Commerce Roundtable on Competition Enforcement and Compliance, and “ICN in Brazil: The Changing World of Competition,” sponsored by the International Bar Association.

Founded in 2001, the International Competition Network is an informal, virtual network that seeks to facilitate cooperation between competition law authorities globally.  The Rio Conference focused on enforcement and compliance in competition law, including South American enforcement priorities and the business response, as well as company strategies to improve antitrust compliance.

USCIB now enjoys non-governmental advisor status in the ICN, which will increase our visibility and will allow more of our members to participate in its projects, regional workshops and annual meeting.

While in Brazil, USCIB’s Flick also met with a number of Brazil-based attorneys to discuss the current state of intellectual property protection in Brazil, and how the Brazilian bar views intellectual property law and policy as it relates to the international community.

Staff contact: Justine Badimon

More on USCIB’s Competition Committee

More on USCIB’s Intellectual Property Committee

APEC Regulators Forum Looks at Challenges Faced by Manufacturers

Published on April 13, 2012
APEC Regulators Forum Looks at Challenges Faced by Manufacturers
APEC Regulators Forum Looks at Challenges Faced by Manufacturers

USCIB members took part in a panel discussion at the APEC (Asia-Pacific Economic Cooperation) Regulators Forum on March 30 in Singapore, drawing attention to some of the challenges manufacturers face in many countries with respect to chemicals regulation, which is having an increasing impact on downstream users of chemicals.

For the past several years the APEC Chemical Dialogue has discussed how best to contribute to APEC’s overarching goals of trade liberalization and business facilitation throughout the Asia-Pacific region.

Moderating the discussion and speaking on behalf of USCIB was Sophia Danenberg (Boeing)¸ who said the panel was intended to gauge the interest of APEC economies on this topic and elicit thoughts for next steps, if any, for region-wide action.

The discussion was productive, with a consensus among participants that regulating chemicals in articles is a complicated matter, and that further discussion on the topic is needed. It revolved around how various industries are dealing with the need to communicate substances in articles along the supply chain.

Timo Unger (Hyundai) described how complex supply chain communication can be for the automotive industry. A single vehicle, he said, can contain hundreds of thousands of articles, most of which are pre-manufactured, which makes understanding what substances they contain and communicating that information throughout the supply chain a major challenge.  As a result, auto companies have created an international database for original equipment manufacturers to manage environmentally relevant aspects of the different parts used in vehicles.

Andrea Fava (Intel), representing the Information Technology Industry Council, shared the electronics industry’s experiences and approach to materials declaration. She said the industry has its own database on material declaration, which is meant to harmonize requirements across the supply chain and improve economic efficiencies. Komei Kimura (Japanese Environmental Management Association for Industry) noted a joint article management consortium established in 2006 by 17 member companies across various industries to develop a system for exchanging information on chemicals in articles across various supply chains.

Matthew Gredley, from the Australian health department, gave a regulator’s perspective on the challenges faced in obtaining information about chemicals in articles.  He specifically noted the Australian government’s assessment of diethylhexyl phthalate, a plasticizer used in industrial and consumer products, and the challenges that Australia had in obtaining information on the level of that chemical in articles.

It is clear that both industry and APEC member economies share the goal of the sound management of chemicals throughout their life-cycles. There is a need to share and have access to relevant information regarding the chemicals in articles for a variety of reasons, including to allow economies to assess and mitigate risks to human health and the environment, enable industry to demonstrate compliance to regulatory requirements and inform environmentally conscious design.

Furthermore, while information sharing is crucial, a balanced approach is required that recognizes and respects the important concept of intellectual property and protection of confidential information, as well as consumers need to know.

Staff contact: Helen Medina

More on USCIB’s Product Policy Working Group

ICC Gathering Assesses Digital Economy Business Priorities+

Published on April 11, 2012
The meeting also included remote participation
The meeting also included remote participation

Over 40 digital economy experts from 14 countries gathered at the International Chamber of Commerce (ICC) headquarters in Paris to discuss business priorities relating to the information and communication technologies (ICT) and Internet policy landscape.

The two-day meeting of the ICC Commission on the Digital Economy, included discussion on topics ranging from the development of new technologies and business models, to the full expanse of Internet-related policy matters.

A number of USCIB members actively participated in the ICC commission, whose members are drawn from ICC national committees (like USCIB) around the world.

Herbert Heitman, executive vice president of external communications at Royal Dutch Shell and chair of the Digital Economy Commission led the meeting and stressed the importance of business engagement in ICT and Internet issues.

During a status report on ICC input to a European Commission communication on “a comprehensive approach to personal data protection in the European Union,” Christopher Kuner, chair of the ICC Task Force on Privacy and the Protection of Personal Data, explained how the directive would extend beyond the boundaries of the EU to impact businesses around the world. Joe Alhadeff, chief privacy strategist and vice president for global public policy at Oracle Corporation (and vice chair of USCIB’s Information, Communications and Technology Policy Committee), supported Mr. Kuner’s remarks and added: “Every industry one way or another will be affected by this regulation. ICC must make every effort to communicate to businesses worldwide how this regulation will impact them.”

In an afternoon session dedicated to the work of the ICC Task Force on Internet and Telecommunications, Eric Loeb, vice president, international external affairs at AT&T, led discussions relating to the development of ICC policy recommendations on the modernization of Mutual Legal Assistance Treaties (MLAT) – agreements between two countries for the purpose of exchanging information in an effort to enforce public or criminal laws. These agreements have not been updated to reflect the contemporary communications environment, and this creates legal uncertainty for industry and governments. ICC has recognized as a top priority the need for governments and the private sector both to establish a responsible balance of interests on law enforcement assistance requests, and to minimize situations where industry is in the middle of a conflict of laws between two countries. Modernized MLATs could support both goals.

“The ICC work on this would be an unprecedented effort by industry to identify specific best practices for both government and private sector, and aims to help avert the trend of government local infrastructure/storage mandates, and to preserve cross-border data flows,” Mr. Loeb said.

Click here to read more on ICC’s website.

Staff Contact: Barbara Wanner

More on USCIB’s Information, Communications and Technology Policy (ICT) Committee

India’s Retroactive Tax Proposal Assailed by Business

Published on April 2, 2012

Faced with an Indian proposal to retroactively tax mergers and acquisitions as far back as a half-century, USCIB joined with other top business groups from North America, Europe and Japan in a letter to Indian Prime Minister Manmohan Singh protesting the move.

The proposal, contained in India’s 2012 finance bill, could upend numerous previously decided, could have a major dampening effect on foreign investment in the country.  In their letter, the business groups wrote: “The sudden and unprecedented move in the Bill has undermined confidence in the policies of the Government of India toward foreign investment and taxation and has called into question the very rule of law, due process, and fair treatment in India. This is now prompting a widespread reconsideration of the costs and benefits of investing in India.”

The letter was timed to coincide with the visit to India by U.K. Chancellor of the Exchequer George Osborne, who was expected to raise the issue with his Indian hosts.  In addition to USCIB, the letter was signed by the Business Roundtable, Canadian Manufacturers & Exporters, Capital Markets Tax Committee of Asia, the Confederation of British Industry, the Japan Foreign Trade Council and the National Foreign Trade Council.

Staff contact: Carol Doran Klein

More on USCIB’s annual tax conference (June 4-5, 2012, Washington, D.C.)

More on USCIB’s Taxation Committee

ICC Tackles the Application of Anti-Avoidance Rules in the Field of Taxation

Published on April 2, 2012
ICC upholds that the use of anti-avoidance rules of taxation that establish barriers to cross-border business transactions is counterproductive and should be stopped
ICC upholds that the use of anti-avoidance rules of taxation that establish barriers to cross-border business transactions is counterproductive and should be stopped

The International Chamber of Commerce (ICC) has recently adopted a policy statement, produced by the ICC Commission on Taxation, on the application of anti-avoidance rules in the field of taxation.

It is critical that tax authorities understand that in order for businesses to be competitive, they must seek out the most efficient ways of carrying out business transactions. This is especially crucial in the context of the increasing globalization of businesses and the world economy.

In recent observations, there is a growing trend for tax authorities to disregard transactions relating to tax assessment based on their interpretations of anti-avoidance rules, which are at times quite extensive.
ICC upholds that the use of anti-avoidance rules of taxation that establish barriers to cross-border business transactions is counterproductive and should be stopped.

“These anti-avoidance rules are destructive to countries themselves, when other countries impose them on a home country multinational in a way that diminishes the home country tax base and produces a bilateral controversy,” said ICC Commission on Taxation Vice-Chair Cym Lowell.

Read the policy statement on anti-avoidance
rules

Staff Contact: Carol Doran Klein

More on USCIB’s Taxation Committee

Case Study 2: Uncertainty in International Tax Policy

Published on March 30, 2012

The Problem

Uncertainty in the application of international tax rules can act as a barrier to the expansion of cross-border trade and investment. When the OECD Guidelines on Multinational Enterprises were being revised, the chapter on tax contained vague language on “complying with the spirit of the law” that few people had focused on.  USCIB alerted its members to the risks associated with language that created an environment without transparency or certainty which would place companies at the mercy of government’s interpretation of what constituted a violation of the “spirit” without regard to the intention of their legislatures.

 

USCIB Speaks Out

At the OECD

USCIB, working with its tax committee, organized a campaign to raise the issue inside the OECD on the need to revise the language in the tax chapter.  They drafted new language to define the “spirit of the law” and advocated their position directly to the OECD as to why the language must be revised.

At the U.S. Department of State

USCIB brought the U.S. Department of State into the discussion and urged them to stand their ground based on the negative impact the original language could have on U.S. companies.  USCIB continued to coordinate with the OECD and the State Department to press for new language and ensure approval.

 

Outcome

As a direct result of USCIB’s efforts, the final language adopted stated that complying with the “spirit of the law” means discerning and following the intention of the legislature. And that the intention of the legislature is determined based on the statutory language and relevant, contemporaneous legislative history.  This prevents tax authorities from asserting that legitimate tax planning violates the “spirit of the law” and is viewed as a major victory for U.S. companies.

*(The Guidelines are recommendations addressed by governments to multinational enterprises operating in or from adhering countries. They provide voluntary principles and standards for responsible business conduct in areas such as employment and industrial relations, human rights, environment, information disclosure, combating bribery, consumer interests, science and technology, competition, and taxation)

Join us.

Cym Lowell appointed as Vice Chair of ICC Commission on Taxation

Published on March 30, 2012
ICC has appointed Cym Lowell as the vice-chair of the Taxation Commission
ICC has appointed Cym Lowell as the
vice-chair of the Taxation Commission

The International Chamber of Commerce (ICC) has appointed Cym Lowell of Gardere Wynne Sewell LLP as the vice-chair of the Taxation Commission.

Mr. Lowell is an experienced international tax lawyer who has specialized in transfer pricing and related qualified authority matters for a career spanning almost 40 years.

His specialty has been the resolution of bilateral disputes that other advisors have not been able to achieve. Mr. Lowell has enjoyed a collegial practice, working with colleagues in every country who have transfer pricing examination or APA capability.

Mr. Lowell, who is originally from Dallas, Texas, draws on extensive experience from his career as a private lawyer. This provides him with distinct views on current and future dispute resolution, the pros and cons of tax authority approaches in principal countries, and styles of the small community of professionals who handle such matters.

He graduated from Indiana University with a Bachelors of Science and then continued his legal studies at Duke University. Mr. Lowell is a published author of many books and articles relating to transfer pricing issues, as well as to US international taxation issues.

He is currently an active member of many prestigious organizations, including the Business and Industry Advisory Council (BIAC) and the Organization for Economic Cooperation and Development (OECD). In addition, Mr. Lowell has served as a consultant for many legislative bodies, counseled OECD member countries, and has lead workshops on the conduct of transfer pricing examinations for national tax authority officials.

In his role as vice-chair, Mr. Lowell is set to advance the committee’s work while also supporting the Commission Chair, Theo Keijer. The Commission’s work focuses on analyzing developments in international fiscal policy as well as on providing business views on government projects affecting taxation.

The Commission on Taxation is composed of international tax experts from areas of business and private practice and represents the world’s major companies and tax consultancy firms. Its mission is to promote a tax system that eliminates difficulties in cross border trade and investment activities.

The Commission announced at its meeting in March that it had elected Mr. Lowell, who will help the chair represent consensus viewpoints of the Commission. These viewpoints include those of governmental decision makers and the media. He will also be called upon to lead meetings of the Commission when the chair is unable to do so.

Staff Contact: Carol Doran Klein

More on USCIB’s Taxation Committee

Cloud Computing And Its Commercial Implications for Consumers

Published on March 29, 2012

4285_image001The International Chamber of Commerce (ICC) drew attention to the important and transforming commercial implications of cloud services for consumers and small-to-medium-sized enterprises (SMEs) in a statement today.

Governments should use a flexible and light touch when they develop new regulations that may apply to cloud-based services in order not to limit the potential of emerging models or risk constraining innovation, the ICC Commission on the Digital Economy recommended in its statement “Business views on regulatory aspects of cloud computing”.

Such well-intentioned policies and regulations could significantly undermine and limit the potential social and economic benefits of cloud, while an appropriate approach to risks and solutions in the cloud context allows the customer to make informed decisions.

“Consumers and SMEs have the potential to extend the powerful existing cloud computing and processing resources to new business offerings and social applications,” said Christiaan van der Valk, CEO of Stockholm-based IT solutions provider Trustweaver and co-chair of the Task Force on Security and Authentication that helped draft the statement.

“There are risks, but these risks – the location of information, security controls over information, and the consequences of exiting a commercial arrangement – have already been faced by businesses and consumers when dealing with a number of existing models, such as outsourcing,” he said.

The statement identified four broad regulatory categories of particular importance to providers and consumers of cloud services. These include data privacy, confidentiality and secrecy obligations, litigation and investigatory access, and specific sectoral rules on outsourcing.

“Enhancing consumer trust and confidence in cloud is key,” said Jacques Beglinger, Attorney-At-Law at the Berne-based Federation of Swiss based multinational enterprises, Swissholdings, and Co-Chair of the Task Force on Security and Authentication.

“Since cloud computing for both buyers and sellers of services does not pose major new regulatory challenges, ICC upholds that governments should be encouraged to use the regulatory powers they already do possess, regarding privacy and security issues, in order to improve trust and understanding in the cloud services market,” Mr. Beglinger said.

The ICC Commission on the Digital Economy represents approximately 250 companies, organizations and ICC national committees in more than 50 countries globally.

The Task Force on Security and Authentication, set up by the Commission, is composed of more than 55 experts in the field of IT and information, communications and technologies (ICT), data protection and privacy, security and authentication, and telecommunications.

View the full policy statement: Business views on regulatory aspects of cloud computing

More on USCIB’s Information, Communications and Technology Policy (ICT) Committee

ICC Roundtable on Competition Policy Will Focus on Themes Competition Enforcement and Compliance

Published on March 23, 2012
Panelists include senior officials from government agencies, competition experts from the private sector and high-level academics
Panelists include senior officials from government agencies, competition experts from the private sector and high-level academics

The International Chamber of Commerce (ICC), on the occasion of the 11th International Competition Network (ICN) Annual Conference, is hosting its fourth roundtable on competition policy in Rio de Janeiro on April 16, 2012. The central themes for this year’s roundtable conference are “Competition, Enforcement and Compliance.”

“The ICC roundtable is a unique opportunity to participate in a debate with officials of competition agencies from all over the world and business executives on topics that are shaping the current competition system and rules,” said Paul Lugard, acting chair of the ICC Commission on Competition.

“As in past years, I expect that this roundtable will provide a valuable forum for dialogue between the enforcement agencies and business representatives on important competition law issues,” added Michael Blechman, chair of USCIB’s Competition Committee and vice-chair of the ICC Commission on Competition.

Launched in 2009, this half-day high-level forum has previously looked at topics such as the cooperation between business and agencies in competition law enforcement and possible improvements to this system. Best practices in competition law, particularly from the angle of due process requirements, were discussed in 2010. Last year’s theme “Competition and Innovation” examined the interface between competition and innovation policy as a driver for economic growth and the impact of unilateral company conduct on consumer welfare.

This year’s focus on enforcement and compliance includes panels on South American enforcement priorities and business responses to those priorities, as well as company strategies to improve antitrust compliance. Participants are invited to take an interactive part in panel discussions.

This year’s roundtable panelists will include senior officials from government agencies around the world, competition experts from the private sector and high-level academics.

Click here to read more on ICC’s website.

ICC Competition Commission

More on USCIB’s Competition Committee