Competitiveness and Innovation Archives

ICC Tackles Concerns About CrossBorder Access to Company Data

Published on March 20, 2012
Many companies are expected to meet conflicting requirements
Many companies are expected to meet conflicting requirements

The International Chamber of Commerce (ICC) has issued a policy statement pointing out conflicts that can arise between law enforcement requirements and privacy commitments when governments seek access to personal data held by companies across national borders.

Entitled “Cross-border law enforcement access to company data – current issues under data protection and privacy law”, the statement analyzes the issues that can arise in such situations, and makes recommendations that can help ensure respect for both law enforcement interests and those under data protection and privacy laws and commitments.

“Companies that process data in different countries are facing increasing government pressure to comply with law enforcement and regulatory requests that may conflict both with data protection and privacy laws in other countries in which they operate, and with consumer expectations and commitments to business partners,” said Christopher Kuner, Chair of the Task Force on Protection of Personal Data and Privacy, established by the ICC Commission on the Digital Economy.

“While some countries or regions have legal frameworks for reconciling law enforcement requirements with requirements under data protection and privacy law, many do not, and this can cause companies major problems,” Mr. Kuner added. “These sorts of problems are only increasing, given the growth in trans-border data flows.”

Click here to read more on ICC’s website.

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

EU-Style Chemicals Regulation Being Pushed in Various Forums

Published on March 12, 2012

4269_image002On March 7 in Baltimore, Helen Medina, USCIB’s director of life sciences and product policy, took part in the annual GlobalChem conference, speaking on a panel on “Regulating Chemicals in Products/Articles.” For over 20 years, GlobalChem has provided a forum for discussion of the U.S. Toxic Substances Control Act, equivalent international regulations, and emerging issues and trends in the product stewardship arena.

The panel focused on the increasing pressure for U.S. manufacturers, importers and exporters to meet applicable governmental reporting requirements (including the European Union’s REACH effort), as well as content restrictions such as state chemical-specific laws in the U.S. and the EU’s Restriction of Hazardous Substances (RoHS II) initiative, without knowing fully what chemicals their suppliers have used in making the products they purchase and those used in making or selling their own products. In addition to Medina, the other panelists were Mike Irwin (Procter & Gamble), Andrea Fava (Intel) and Ernie Rosenberg (American Cleaning Institute).

Panelists reviewed increased government reporting requirements and content restrictions, as well as compliance through supply-chain management, and identified the challenges and solutions for companies selling products that incorporate chemicals or components supplied by others. USCIB’s Medina spoke about how the regulation and information-sharing about chemicals in articles are unfolding in the international arena. She described the specific obligations EU REACH sets out for manufacturers of articles, and she called attention to South Korea’s efforts to introduce REACH-style.

Medina also described how the UN efforts, including the Strategic Approach to International Chemicals Management (SAICM) initiative, are addressing chemicals in products and providing a platform for some to call for increased sharing of environmental information. She warned of the spread of REACH-like approaches outside the EU, the use of SAICM as a platform to facilitate this, and the potential “perfect storm” brewing in various multilateral forums – from June’s Rio+20 conference to the International Conference on Chemicals and Chemicals Management – to validate the inclusion of REACH-style measures in an international treaty built on the SAICM initiative. Medina said the time is now for business to engage with governments in the run-up to Rio+20 and in SAICM discussions in order to shape desired outcomes.

Staff contact: Helen Medina

More on USCIB’s Product Policy Working Group

New Study on Benefits of AntiCounterfeiting Trade Agreement

Published on February 29, 2012

Business Action to Stop Counterfeiting and Piracy (BASCAP) – an initiative of the International Chamber of Commerce, part of USCIB’s global network – joined with the International Trademark Association in releasing a study that provides a practical analysis of the importance and benefits of the Anti-Counterfeiting Trade Agreement (ACTA).

The study aims to add clarity to the debate on ACTA in Europe by outlining how ACTA promotes EU trade and economic growth, as well as how it protects consumers and EU companies of all sizes against the negative impacts of counterfeiting and piracy.

It provides a detailed analysis of the provisions of ACTA and reaffirms the conclusion that ACTA is fully consistent with the laws of the EU and its member states, citing specific sections that expressly provide for protection of civil liberties, fair processes, privacy and other important fundamental rights and values of the EU.

Read more on ICC’s website.

More on USCIB’s Intellectual Property Committee

Business Welcomes Joint Action on FATCA

Published on February 9, 2012

BIAC, the Business and Industry Advisory Committee to the OECD, part of USCIB’s global network, welcomed yesterday’s joint statement by the United States, France, Germany, Italy, Spain and the United Kingdom to develop an intergovernmental approach to the implementation of the U.S. Foreign Account Tax Compliance Act (FATCA).

Chris Lenon, chair of the BIAC Committee on Taxation and Fiscal Affairs, commented on the multilateral approach taken by the signatory countries towards improving international tax compliance.

“We believe that by working together, rather than unilaterally, governments can achieve the goal of addressing international tax compliance but in a way that minimizes compliance burdens for business and reduces the risk of a proliferation of multiple and different reporting requirements emerging around the world,” Mr. Lenon stated. “In particular, we welcome the commitment to develop common reporting standards and BIAC will work closely with governments and the OECD on these issues.”

USCIB Comments on OECD Tax Treaty

USCIB has provided comments on the draft revised OECD Model Tax Convention, specifically the chapter on permanent establishment.  To read the comments, please click here.  USCIB works directly with the OECD secretariat on tax policy and a range of other issues by virtue of our affiliation with the Business and Industry Advisory Committee to the OECD.

Staff contact: Carol Doran Klein

More on USCIB’s Taxation Committee

Business Gears Up for Global Telecom Policy Conference

Published on February 7, 2012

4244_image001This December in Dubai, the International Telecommunications Union (ITU), the specialized UN agency that addresses telecom and related policy matters, will hold a major treaty-writing conference – the 2012 World Conference on International Telecommunications (WCIT).  At the conference, ITU member states plan to renegotiate the International Telecommunication Regulations (ITRs), a major telecommunications treaty last revised in 1988.

In the course of the preparatory process for WCIT, member states have proposed adding or modifying provisions of the ITRs that are likely to impact international ICT services and markets.  For example, some proposals could give the ITU regulatory authority over international economic regulation of Internet connectivity, international mobile roaming rates, cyber security and spam, number misuse, Internet governance, and various other topics related to the economics of the international ICT sector.

USCIB and its global network, including the International Chamber of Commerce, are gearing up for WCIT.  In a recent briefing note to members, leaders of our Information, Communications and Technology Policy Committee wrote: “We believe that major policy dialogues like WCIT must be informed by relevant, reliable, and current facts.  We also believe that, at present, some of the proposals for modifying the ITRs are not informed by complete facts.”  The note was sent by Eric Loeb, vice president of international external and regulatory affairs with AT&T and chair of ICC’s Task Force on Internet and Telecommunications; Ambassador David Gross of Wiley & Rein, chair of USCIB’s Information, Communications and Technology Policy Committee; and Heather Shaw, USCIB’s vice president for ICT policy.

In addition, USCIB is organizing a February 9 briefing on WCIT with Ambassador Philip Verveer, deputy assistant secretary of state and the U.S. coordinator for international communications and information policy, at Wiley Rein in Washington, D.C.

Staff contact: Heather Shaw

More on USCIB’s Information, Communications and Technology Committee

New Roadmap for Global Intellectual Property Protection Launched

Published on January 25, 2012

The International Chamber of Commerce (ICC), the world business organization for which USCIB serves as the American affiliate, has launched the 11th edition of its flagship intellectual property (IP) publication ICC Intellectual Property Roadmap: Current and Emerging Issues for Business and Policymakers.

Presenting the new edition in Geneva at the inaugural Licensing Executives Society International’s Global Technology Impact Forum, David Koris, chair of the ICC Commission on Intellectual Property, said: “The IP Roadmap has undergone extensive updates to reflect key developments in the IP policy landscape. It is an invaluable tool to bring policymakers and business leaders worldwide up to date on IP-related issues, from measures to control copyright and trademark infringement on the Internet to the mediation of IP disputes.”

Containing contributions from ICC experts and members from around the globe, the popular ICC Roadmap is a useful reference tool to help business, policy and legal professionals worldwide keep pace with the rapidly evolving intellectual property landscape. Published every two years, it is translated into several languages including Arabic, Chinese, German, Portuguese, Russian, Spanish and Ukrainian.

Read more on ICC’s website.

More on USCIB’s Intellectual Property Committee

USCIB Keeps Tabs on UN Discussions of Chemicals in Products

Published on November 30, 2011

4208_image002Helen Medina, USCIB’s director of life sciences and product policy, recently attended the Open-Ended Working Group (OEWG) meeting of the UN’s International Conference on Chemicals Management (ICCM) which was held November 15-18 in Belgrade.

In 2006, ICCM adopted the Strategic Approach to International Chemicals Management (SAICM) as a policy framework to foster the sound management of chemicals.  SAICM was developed by a multi-stakeholder and multi-sectoral preparatory committee, and supports the achievement of the goal – agreed at the 2002 Johannesburg World Summit on Sustainable Development – of ensuring that, by the year 2020, chemicals are produced and used in ways that minimize significant adverse impacts on the environment and human health.

The functions of the OEWG are to consider the implementation, development and enhancement of the Strategic Approach to International Chemicals, and to make recommendations for ICCM3, which will be held in September 2012 in Nairobi.

The overarching issue that impacted the discussions at the OEWG surrounded the financing and technical resources for implementing SAICM goals. This included the financing of the Quick Start Program and of SAICM itself. As such, many delegates felt that unless financing and technical issues were resolved, there was little point in discussing other issues for possible inclusion on the provisional agenda of ICCM3.

To deal with the issue of long-term and short-term finance issues, the president of the meeting created a “Group of the Friends of the President” and a “Committee of the Whole (COW)” to prepare draft decisions or resolutions for possible adoption by ICCM3. Although there were several issues of interest that USCIB followed during the meeting, it was the Chemical in Products project which has generated the most interest among USCIB’s members.

SAICM is a voluntary policy framework, implemented in a multi-stakeholder process, and sets as one of its main objectives that information and knowledge about chemicals contained in products “is available, accessible, user friendly, adequate and appropriate to the needs of all stakeholders.” As a step towards fulfilling this objective, the second session of the governing body of SAICM, the International Conference  for Chemicals Management (ICCM2), in May 2009 recognized chemicals in products as an emerging policy issue, and adopted a resolution which invited UNEP to lead a Chemicals in Products (CiP) project.

Since ICCM2, the UN Environment Program, the lead agency for this topic, has been focusing its work on understanding the availability of information on CiP. There were in-depth studies in specific sectors on this topic and a workshop was held to make suggestions on how to move this project forward. The major recommendation from the workshop was to develop a voluntary framework to facilitate the flow of information on CiP.

For a more detailed report of the meeting please refer to the Draft Report of the Work of the Open-ended Working Group of the International Conference on Chemicals Management at its First meeting, the Addendum to the Draft Report of the OEWG, and the Draft Decisions Submitted by the Committee of the Whole.

Staff contact: Helen Medina

More on USCIB’s Product Policy Working Group

Business Groups Seek Reporting Relief for Employees at Worldwide Firms

Published on November 29, 2011

Earlier this month, USCIB joined several leading business groups in sending a letter to the U.S. Treasury Department, requesting less burdensome rules for Foreign Bank and Financial Accounts (FBAR) filings required by employees of worldwide American companies involved in global finance.

In the letter to James H. Freis, Jr., the director of the Treasury’s Financial Crimes Enforcement Network (FinCEN), the business groups sought a reduced burden on employees of companies which report to the Securities and Exchange Commission. The associations wrote: “Multinational companies are increasingly frustrated by changing rules that unnecessarily expand the FBAR filing requirements for their employees, create traps for innocent violations and potentially impose costly penalties.”

The letter stated that current FBAR rules are burdensome, complex and “create the potential for inadvertent errors by corporate finance employees.”  It said companies do not want to subject their employees to tax penalties for inadvertent failure to follow the “confusing” FBAR rules.

The primary objective of FBAR filings is to help the government detect money laundering or other criminal activity through the use of foreign financial accounts. The associations emphasized in the letter that their members do not pose a meaningful risk of such activities, and their employees should not be exposed to penalties for not making individual filings in any case.

Signing the letter in addition to USCIB were the National Foreign Trade Council, Financial Executives International Committee on Taxation, Software Finance and Tax Executives Council, U.S. Chamber of Commerce, TechAmerica and Information Technology Industry Council.

Staff contact: Carol Doran Klein

More on USCIB’s Taxation Committee

APEC Leaders’ Commitment to Reduce Barriers to Information Flows Welcomed

Published on November 15, 2011
APEC leaders in Honolulu.
APEC leaders in Honolulu.

USCIB applauded APEC leaders for agreeing at their just-concluded summit in Honolulu to begin to put into operation a long-awaited system to recognize corporate privacy practices in order to facilitate international commerce.

In their joint communiqué, APEC leaders pledged to “implement the APEC Cross-Border Privacy Rules System to reduce barriers to information flows, enhance consumer privacy, and promote interoperability across regional data privacy regimes.”

“Cross-border data transfers are vital to conducting business in a global economy,” said Heather Shaw, USCIB’s vice president for information, communications and technology policy.

“However, differing government regulations on transfers of personal information can create impediments to the flow of information across borders, which is the lifeblood of today’s dynamic global economy.  We are pleased that, with the APEC Cross-Border Privacy Rules System, companies will be able to transfer customer or employee information for processing across the region based on a one-stop validation mechanism against the APEC principles, simplifying processes and reducing costs.”

Following the adoption of the APEC Privacy Framework in 2004, USCIB foresaw the potential benefits of such a mechanism to improve conditions for expanded trade and investment in the APEC region.  USCIB and its member companies have supported the development of a cross-border privacy rules system, as an active participant in the APEC working group charged with developing the rules, and have been key contributors to many components of the newly announced system.  At a preparatory meeting to the Honolulu summit, USCIB organized a workshop on the new system.

“We are particularly pleased to see an ongoing commitment to promoting interoperability across regional data privacy regimes, which will further increase the benefits and reduce the costs of participating in this program,” said Ms. Shaw.

Ms. Shaw noted the business community’s appreciation for the important roles played by Australia in chairing the APEC Data Protection subgroup, by Canada in its work in APEC and the OECD on regulatory cooperation, and by the U.S. government in helping support and coordinate the Pathfinder project.  She also recognized key input from other APEC governments that took part in the development of the system as well as constructive input from civil society groups.

Staff contacts: Heather Shaw

More on USCIB’s Information, Communications and Technology Committee

Silicon Valley General Counsels Learn About Emerging Global Legal Challenges

Published on November 1, 2011
USCIB’s Charlene Flick
USCIB’s Charlene Flick

On October 21, Charlene Flick, director of intellectual property and competition at USCIB, addressed the Silicon Valley Association of General Counsel in Santa Clara, California.  Ms. Flick discussed emerging legal challenges for U.S. companies as they expand internationally, and specifically how USCIB helps American industry navigate an increasingly complex global marketplace.

USCIB recently updated its Legal Issues Overview, which presents a number of key international policy issues with strong legal components as a reference for corporate counsel and other legal professionals.

“The objective of USCIB’s work,” Ms. Flick noted, “is to foster fair and predictable legal and regulatory regimes across borders to enhance seamless transactions across borders.”  Ms. Flick discussed how USCIB capitalizes on its extensive industry network to influence policy at both national and international institutions.  She then offered a selection of legal challenges that she confronts regularly in her work at USCIB, ranging from questions of jurisdiction and extraterritoriality to the adequacy of a country’s intellectual property regime and whether or not the U.S. notion of due process is respected in foreign jurisdictions in the course of a foreign enforcement action.

“Of particular interest to the general counsels was the realization that legal privilege as U.S. lawyers understand it – that communications between corporate executives and in-house lawyers are privileged and not discoverable — does not apply in all foreign jurisdictions,” Ms. Flick observed.  “The European Union, for example, does not accept this notion of legal privilege, and it is important for American companies to understand that communications internally across borders may be subject to different legal norms in the course of a foreign investigation, and how best to deal with this reality.”

Ms. Flick emphasized that advocacy should not be limited to the legislative bodies, but that influencing policy objectives should be approached on the executive and judicial fronts, as well.  She noted that as the markets globalize, policymakers will be forced to harmonize their own regulatory landscape with that of other countries to benefit their own economies.  “U.S. industry is global industry,” Ms. Flick concluded, “and it should insist upon being at the table where regulations and policies are conceived that will dictate global business.”   This, of course, is where USCIB really provides value to its members.

Staff contact: Helen Medina

USCIB Legal Issues Overview

More on USCIB’s Intellectual Property Committee

More on USCIB’s Competition Committee