Growth, Jobs and Open Markets Archives

Business Pushes for Robust Trans-Pacific Partnership Agreement

Published on February 28, 2012

New York, N.Y., February 28, 2012 – The United States Council for International Business (USCIB), which represents America’s leading global companies, has joined 30 other leading U.S. business associations in pressing for an ambitious and comprehensive Trans-Pacific Partnership agreement, with robust enforcement and dispute settlement provisions. The business groups made their case in a letter to President Obama in which they urged the United States to push back strongly against Australian resistance to investor-state dispute settlement mechanisms like those found in other U.S. trade agreements.

The letter pointed out that investor-state provisions are already included in thousands of trade agreements and related instruments worldwide, including many to which Australia is a party. Such provisions, the business associations said, “promote the rule of law and serve as an important backstop to ensure that investors who risk their capital, property and talent in foreign countries will be able to enforce due process, non-discrimination, basic property and related protections in a neutral, balanced and objective forum.”

USCIB co-chairs the TPP Business Coalition’s investment committee, reflecting its role as a premier voice for liberalization of both trade and investment regimes around the world.

USCIB and the other letter signatories said Australia’s intransigence regarding investor-state provisions is thwarting the ability of the TPP negotiations to develop strong enforcement rules, and is “having a corrosive effect on the level of ambition and other key aspects of the TPP negotiations.” They expressed fear that, should Australia extract such a major exemption, “other countries would press forward to seek their own major exemptions from core commitments, which would ultimately unravel the ability to achieve a comprehensive, 21st-century TPP agreement.”

The letter noted that business concerns in this area are of practical, bottom-line importance. “As data from the U.S. Department of Commerce’s Bureau of Economic Analysis has shown over the past several decades, the U.S. investment overseas that strong investment rules promote brings important benefits back to the United States,” the business groups wrote.

“Firms that invest overseas are more globally competitive, export more, invest more in research and development and capital investment in the United States and pay their workers more than purely domestic companies. Promoting and assuring a level playing field for both inbound and outbound investment is therefore vital for the United States and the other TPP negotiating partners.”

About USCIB:

USCIB promotes open markets, competitiveness and innovation, sustainable development and corporate responsibility, supported by international engagement and prudent regulation. Its members include top 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, 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

(212) 703-5043 or jhuneke@uscib.org

More on USCIB’s Trade and Investment Committee

USCIB Statement on President Obamas International Tax Proposals

Published on February 23, 2012

New York, N.Y., February 23, 2012 – The United States Council for International Business (USCIB) is pleased to see that President Obama’s proposals on business tax reform advocate lower rates and a more efficient corporate tax system. USCIB appreciates the recognition by the President and the Treasury Department that tax reform will take time, require work on a bipartisan basis, and benefit from additional feedback from stakeholders and experts.  We and our members hope to make a positive contribution to that debate.

USCIB is, however, disappointed by the international aspects of the president’s proposals on business tax reform.  USCIB President and CEO Peter M. Robinson stated: “The international provisions fail to recognize that U.S. business competes for customers in the global marketplace.  While most countries have adopted territorial systems seeking to facilitate the competitiveness of their multinationals by taxing income only where it is earned, the U.S. is going in the opposite direction.  By proposing a minimum tax on foreign earnings, a tax on so called ‘excess profits’ and the disallowance of interest expense, the administration proposes a step backwards.”

Mr. Robinson continued: “A minimum tax on foreign earnings will simply make American firms less competitive than foreign based multi-national enterprises.  Further, the likely response in the marketplace is to make the U.S. a less favored jurisdiction for establishing the headquarters of a multi-national business.  Who would choose to set up their business in the U.S. knowing that global expansion would result in a minimum tax?  Companies currently headquartered here may not have many options, but anyone advising a new entity would certainly suggest establishing foreign control from the outset. These tax policies could have a role in the acquisition of American companies by foreign competitors.  When companies are successful in global markets, it means new jobs in their home countries to support those global business opportunities. Discouraging U.S. headquarters will result in fewer American jobs.”

About USCIB:
USCIB promotes open markets, competitiveness and innovation, sustainable development and corporate responsibility, supported by international engagement and prudent regulation.  Its members include top 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, 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
(212) 703-5043 or jhuneke@uscib.org

More on USCIB’s Taxation Committee

Business Urges Attention to Ongoing US-China Market Access Concerns

Published on February 14, 2012

4250_image002New York, N.Y., February 14, 2012 – As this week’s visit by Vice President Xi Jinping focuses attention on the complexity of U.S. relations with China, the United States Council for International Business (USCIB) is urging leaders from both countries to tackle important commercial and economic matters in order to keep this mutually beneficial relationship on an even keel.

 “The U.S.-China relationship extends across an array of geopolitical as well as economic issues, and our economies are now deeply intertwined,” stated USCIB President and CEO Peter M. Robinson.  “On balance, it provides significant benefits for both countries.  However, there remain too many commercial and economic issues handicapping the ability of American firms to compete in China and in third markets, thereby placing our workers at a disadvantage and impeding progress on the overall relationship.  These need to be urgently addressed.”

Mr. Robinson said major trade and investment priorities for American companies in China include, but are not limited to:

  • improving market access for key industries
  • resolving longstanding currency disputes
  • improving protection of intellectual property rights, and
  • ensuring competitive neutrality for state-owned enterprises.

“We urge the two governments to focus on resolving these issues through diplomatic means, both bilateral and multilateral, and to reinforce existing forums like the WTO, the Strategic and Economic Dialogue, and the Joint Commission on Commerce and Trade,” he said.

The USCIB president noted recent progress by China toward closer bilateral ties with other countries, including last week’s signature of a trade and investment agreement with Canada.  “We should be looking seriously at developing new agreements, such as a bilateral investment treaty (BIT) with China,” said Mr. Robinson.  “These could ensure continued liberalization of key markets and provide important security to American investments in the country.  Absent such agreements, American companies and workers could be disadvantaged when competing in China with companies from countries already benefitting from such agreements.  We shouldn’t be sitting on the sidelines.”

Mr. Robinson also called attention to an October USCIB statement on China’s compliance with its WTO accession commitments.  “As we noted in that statement, China has made important progress, but much work remains.  Priority issues include improving transparency in China’s regulatory environment, the need for fair and independent regulators, greater market access, non-discriminatory treatment and inadequate intellectual property laws.  We urge the U.S. and Chinese governments to take up these issues on a priority basis, and we stand ready to provide business views to help ensure a fully informed discussion.”

About USCIB:

USCIB promotes open markets, competitiveness and innovation, sustainable development and corporate responsibility, supported by international engagement and prudent regulation.  Its members include top 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, 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

(212) 703-5043 or jhuneke@uscib.org.

More on USCIB’s China Committee

More on USCIB’s Trade and Investment Committee

 

Talking Trade FIT

Published on February 11, 2012

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Talking Trade @ FIT

Export Promotion Marketing

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Moderator

Donna Sharp, Senior Partner, SHARP GLOBAL

Panelists

Amanda Barlow, Director, Carnet Development, US Council for International Business

Herb Ouida, International Trade Consultant

John Stillwaggon, Accounts Receivable Specialist, Accounts Receivable Risk Management, LLC, Coface

The panel will discuss the different government and financial programs to help exporting companies expand aboard.

When

Thursday, May 3, 2012

3:30 p.m. – 5:00 p.m.

Where

FIT

227 W. 27th St.

New York, NY 10001

“C” Building 9th
floor Board Room

RSVP

Please send the names and affiliation of Non-FIT attendees of this event via email to: Nicole_Martin@FITnyc.edu by Thursday, 19 April, 2012

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

USCIB Will Support the China International Import Expo

Published on January 30, 2012

USCIB and the International Chamber of Commerce (ICC), the world business organization which USCIB represents in the United States, along with 30 foreign counterparts of the China Council for the Promotion of International Trade (CCPIT) and China Chamber of International Commerce (CCOIC), have confirmed their support of the China International Import Expo (CIE 2012), which will be held from March 29 to 31, 2012 in Kunshan, Jiangsu Province in China.

Starting in 2012, China will accelerate the transformation of its economic development, as well as the strategic adjustment of its economic structure and industry upgrading. Therefore, China will pay more attention to environmental protection and will expand import of technologies and products of the energy-saving and environmental protection industry. This industry is among the 7 Strategic and Newly-Emerging Industries of which China will accelerate the fostering and development in fast pace. The total volume of its investment is expected to reach RMB 3.1 trillion. The highlights on import focus on technology and equipment for processing and recycling waste, saving energy and preventing and controlling air pollution; new-energy technology and equipment; the technology and equipment for the comprehensive utilization in the recycled economy and resource regeneration; new material and composite material; new-energy material; chemical and macromolecular new material, electronic information material, etc.

The pavilion for energy-saving and environmental protection industry is an important part of the expo. With the help of the database of 100,000 main Chinese import companies the CIE 2012 will invite Chinese companies in the energy-saving and environmental protection circle to visit and purchase during the expo.

Staff contact: Justine Badimon

More on USCIB’s China Committee

China International Import Expo (CIE 2012)

Transatlantic Economic Council: US and EU Commit to Stronger Economic Ties

Published on December 9, 2011

4209_image002Under the leadership of European Union Trade Commissioner Karel De Gucht and U.S. Deputy National Security Advisor for International Economic Affairs Michael Froman, the Transatlantic Economic Council (TEC) met last week, during the U.S.-EU Summit, to discuss more cohesive and mutually beneficial regulatory cooperation between the U.S and EU, with a focus on opportunities in innovative sectors to ensure continued economic success and job creation.

The TEC discussions highlighted the need for bilateral efforts to avoid the creation of unnecessary regulatory and standards barriers to trade, especially in emerging sectors such as nanotechnology and electric vehicles, in strengthening joint approaches to third countries, and in developing commitments to shared principles for international investment by early 2012.

Among the positive outcomes of the TEC, USCIB applauds the much awaited agreement reached by the EU Directorate for Trade and the U.S. Department of Homeland Security on mutual recognition of our trusted trader programs, AEO and C-TPAT.   The agreement will enter into force in June 2012.

USCIB urges the European Union and the U.S. to continue the positive momentum of the TEC into 2012 and looks forward to working with officials by providing input and recommendations from our membership on current and future areas of regulatory cooperation.

Staff contact: Justine Badimon

More on USCIB’s European Union Committee

USCIB to Prepare Recommendations on Next Steps for Trade

Published on December 9, 2011

At the December 1 meeting of USCIB’s Trade and Investment Committee, chaired by Scott Miller (director of national government relations with Procter & Gamble), members moved forward on planned USCIB recommendations on the international trade and investment agenda.

With the recent passage of three long-pending free trade agreements with Colombia, Korea and Panama, the continued lack of progress in the WTO’s Doha Round and growing protectionist sentiment in many key markets, a USCIB task force is developing broad yet detailed recommendations for the United States and other governments on what is needed to spur greater liberalization of trade and investment.  The recommendations are expected to be completed in February.

The committee held a discussion with Everett Eissenstat, trade counsel with the Senate Finance Committee, covering a wide range of trade issues including the recent APEC summit, the Trans-Pacific Partnership, Russia’s accession to the WTO, Customs reauthorization, Trade Promotion Authority, Doha and other trade priorities for 2012.

In addition, the committee reviewed plans for a possible USCIB study of global production networks and their impact on U.S. competitiveness.  Members also heard an update on USCIB’s work USCIB on investment issues, especially state-owned enterprises and competitive neutrality.

Staff contact: Rob Mulligan

More on USCIB’s Trade and Investment Committee

Business Urges Vigilance on Postal Authorities

Published on December 4, 2011

As postal revenue dries up around the world, many publicly operated postal organizations may be tempted to get into new lines of business.  This presents a vexing challenge to private-sector companies that may find themselves in competition with these state-supported entities.

To address these concerns, last month USCIB and three other business groups sent a letter to the Obama Administration urging the U.S. to prepare diligently for the next ministerial-level congress of the Universal Postal Union (UPU), which will take place in Qatar in September 2012.

“We see potentially important issues on the table at the UPU session, including unhelpful efforts from some quarters to extend the scope of government-run postal monopolies into new areas, potentially competing with the private sector,” stated Shaun Donnelly, USCIB’s vice president for investment and financial services.  “Package delivery, insurance, financial services and retail are just some of the sectors where postal monopolies might try to encroach in an effort to offset shrinking volumes and financial losses in their postal services.”

The business groups urged the administration to form an interagency committee to develop coordinated pro-market, pro-competition positions for the U.S. delegation leading up to and at the UPU congress.  They also recommend that the State Department, Postal Service and the U.S. interagency team work closely with relevant private-sector entities throughout this preparatory period.

Other groups signing the letter with USCIB were the American Council of Life Insurers, Coalition of Service Industries and U.S. Chamber of Commerce.

Staff contact: Shaun Donnelly

More on USCIB’s European Union Committee

USCIB Welcomes President’s Commitment to Robust TPP Agreement

Published on November 12, 2011

Honolulu, November 12, 2011–  The United States Council for International Business (USCIB) welcomed President Obama’s comments at the APEC CEO Summit in Hawaii today supporting an ambitious and comprehensive Trans-Pacific Partnership (TPP) agreement and commended all TPP countries for issuing an outline to complete the negotiations in 2012.

“The president’s strong statement for a comprehensive and forward-looking 21st-century trade agreement will help maintain the momentum for completing the TPP negotiations,” stated Rob Mulligan, USCIB’s senior vice president and head of the Washington office, who is attending the APEC CEO Summit.  “The business community has been meeting with leaders from all of the TPP countries over the last few days to urge them to move forward expeditiously with a high-standard agreement that covers all sectors and products.”

Mr. Mulligan further noted: “Japan’s interest in joining the TPP talks highlights the importance of the negotiations for opening markets in the Asia-Pacific region.  If Japan is ready to take on the high-standards, comprehensive commitments that the U.S. business community is seeking in a TPP agreement, then this would be a significant addition to the negotiation.”

Mr. Mulligan said USCIB looks forward to working with U.S. leadership and its partners in the business community to ensure that the final TPP trade agreement produces new economic opportunities and exports to sustain and increase American jobs and the maximum commercial benefits of the growing Asia-Pacific market.

About USCIB
USCIB promotes open markets, competitiveness and innovation, sustainable development and corporate responsibility, supported by international engagement and prudent regulation.  Its members include top 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, 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, USCIB
(212) 703-5043, jhuneke@uscib.org

More on USCIB’s Trade and Investment Committee