Growth, Jobs and Open Markets Archives

Global Business Seeks Coordinated Action to Curb Maritime Piracy

Published on July 8, 2011

Map_CompassAgainst the backdrop of ever-more aggressive forays by Somali pirates against shipping in the Indian Ocean, USCIB President and CEO Peter M. Robinson recently wrote to Secretary of State Hillary Clinton and other top administration officials involved in national security to draw attention to a global Call for Action on Piracy, issued by our affiliate the International Chamber of Commerce at the May 25-27 International Transport Forum in Leipzig, Germany.

ICC calls on governments to take immediate action to improve the rules of engagement given to the navies present in the Indian Ocean, to refocus the efforts of the United Nations and other international bodies to ensure that required institutions in south-central Somalia are established to maintain economic and social standards, and to hold pirates accountable for their conduct.

In the past year, there has been an escalation in both violence and the number of attacks on ships and crew in the area off the coast of Somalia. According to ICC’s International Maritime Bureau, there were 219 attacks off Somalia in 2010, in which 49 vessels were hijacked and 1,016 crew members taken hostage.

Despite measures taken by the UN Security Council and the presence of naval units in the area, pirates continue to strike with increasing violence. In addition to placing individuals and crews in danger, piracy is disrupting international trade and shipping. In 2010, the One Earth Foundation estimated the economic cost of piracy on the supply chain to be in the range of $7-12 billion.

In the call to action, ICC “urges governments to recognize that piracy, in addition to its effect on the safety of seafarers, has an important financial impact on global trade and shipping, and furthermore poses increased threat on the stability and security of energy supply lines not only for major industrial nations.”

The ICC Call for Action on Piracy has been endorsed by over 20 CEOs from key shipping and trading companies around the world.

 

ICC Call to Action on Piracy

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Concern Over Indian Procurement Initiative

Published on July 7, 2011

USCIB recently joined several other associations in a letter to Indian Prime Minister Manmohan Singh raising serious concerns with new draft proposals regarding procurement preferences for electronic products. These proposals would require that a percentage of all electronic procurements by the Indian government be reserved for domestic manufacturing. The letter identifies the many negative aspects of the policies for India and urges the government to not implement any policies seeking to encourage manufacturing through discrimination or by forcing local content in government procurements.

 

Business letter on Indian procurement

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Business Groups Urge No More Delays on Trade Pacts and Adjustment Assistance

Published on July 7, 2011

Yesterday USCIB joined with 33 other business groups on a letter to the leaders of the Senate Finance Committee and House Ways and Means Committee urging them to move forward on the three pending U.S. free trade agreements with Colombia, Korea and Panama, and to work out an agreed approach to Trade Adjustment Assistance (TAA).

“We applaud the work of your committees for taking these next steps toward approval of these vital agreements,” the groups wrote. “To level the playing field for trade, create American jobs, and reaffirm U.S. leadership, [we] urge the swift approval of the three agreements and resolution of the differences over Trade Adjustment Assistance by both the House and Senate.”

Today both committees were expected to hold mock markups to move the approval process forward. The House implementing bill does not include TAA, while the Senate implementing bill does.

Staff contact: Rob Mulligan

Business association letter

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ICC and World Customs Organization Strengthen Partnership

Published on July 6, 2011

USCIB’s affiliate the International Chamber of Commerce and the World Customs Organization (WCO) have signed a revised memorandum of understanding that sets out working activities between the two parties.

The signing took place as part of a two-day conference, entitled Open Day for Trade, hosted by WCO at its headquarters in Brussels. The aim of the event was to encourage the sharing of information, knowledge and experience between leaders and experts from both the customs and business communities.

The previous memorandum of understanding, signed in 1996 by WCO and ICC, launched cooperative efforts for promoting and supporting efficiency in customs control and facilitation.

Read more on ICC’s website

 

More on USCIB’s Customs and Trade Facilitation Committee

Business Presses for Multilateral Action on China’s Currency

Published on June 29, 2011

USCIB and an array of other business groups have written to the House and Senate leadership urging that China’s undervalued currency be addressed in the context of multilateral pressure rather than unilateral U.S. punitive measures.  There are a number of proposals in Congress that would seek to compel a revaluation of the yuan through the imposition of new trade barriers to Chinese goods.

“Like Congress and the Administration, we agree that China needs a yuan exchange rate that responds to trade flows and that China should move steadily towards a market-determined exchange rate,” the business groups wrote.  “In addition to continuing U.S. government efforts, our organizations support strong, coordinated and enhanced multilateral pressure through multiple international organizations such as the G-20 and APEC to achieve concrete progress on China’s currency and exchange rate policies.”

The letter warned that unilateral efforts to impose new tariffs on Chinese goods could draw retaliatory moves that would harm U.S. exports to this fast-growing market.  “Moreover, it is doubtful that U.S. action to countervail undervalued currency could meet the WTO’s standards for the application of countervailing duties,” the groups said.

Staff contact: Justine Badimon

Business letter on China’s currency

More on USCIB’s China Committee

USCIB Welcomes Progress on Approval of Pending Trade Agreements

Published on June 28, 2011

New York, N.Y., June 28, 2011 – The United States Council for International Business (USCIB), which represents America’s leading global companies, welcomed progress toward Congressional approval of pending U.S. free trade agreements with Colombia, Panama and Korea, as the Senate Finance Committee announced it will hold a mock mark-up on Thursday, June 30.

“Approving these agreements as soon as possible will provide a big boost to our economy as we seek to ensure sustained growth and a jobs-based recovery,” stated USCIB President and CEO Peter M. Robinson.  “We need the tools to compete and win in the world economy.  What’s more, failure to move quickly on the three trade agreements will damage American leadership and credibility on the world stage.  American business will do its utmost to ensure Congressional passage.”

The draft implementing bill for the Korea FTA will include an extension of Trade Adjustment Assistance.  “We believe that Trade Adjustment Assistance plays an important role in advancing a bipartisan trade agenda,” Mr. Robinson stated.  Earlier this year, USCIB joined other leading industry associations in signing a joint letter on the importance of TAA.

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

+1 212.703.5043 (office), +1 917.420.0039 (mobile), jhuneke@uscib.org

More on USCIB’s Trade and Investment Committee

With US Tax Reform Looming Global Experts Meet in Washington

Published on June 22, 2011
L-R: Steven Miller, deputy commissioner for services and enforcement at the Internal Revenue Service, and Bill Sample, corporate vice president of worldwide tax at Microsoft Corp. and chair of USCIB’s Taxation Committee. Mr. Miller told the conference the IRS would move “in the next month or so” against foreign banks that refused to hand over details on American clients suspected of tax evasion.
L-R: Steven Miller, deputy commissioner for services and enforcement at the Internal Revenue Service, and Bill Sample, corporate vice president of worldwide tax at Microsoft Corp. and chair of USCIB’s Taxation Committee. Mr. Miller told the conference the IRS would move “in the next month or so” against foreign banks that refused to hand over details on American clients suspected of tax evasion.

With tax reform high on the agenda in Washington, what are the implications for multinational companies?  To help executives and policy makers keep up in this fast-moving area, USCIB convened its fifth annual tax conference earlier this month in Washington, D.C., focusing again on the work of the 34-nation Organization for Economic Cooperation and Development (OECD).

This 2011 OECD International Tax Conference, which took place June 6 and 7 at the Four Seasons Hotel, provided a unique opportunity for the U.S. business community to interact with key representatives from the OECD Center for Tax Policy and Administration, as well as senior tax officials from the U.S. and other OECD countries.  The OECD and itsBusiness and Industry Advisory Committee
(BIAC), part of USCIB’s global network, joined in organizing the event.

“As the volume, speed and complexity of international business continues to grow, global firms need clear, consistent and stable tax rules more than ever,” said Bill Sample, corporate vice president for worldwide taxation with Microsoft Corp. and chair of USCIB’s Taxation Committee.  “The OECD is the recognized leader in promoting a tax system to facilitate multinational business and dispute resolution.”

Key topics addressed at the sold-out event included: the latest developments affecting permanent establishments, transfer pricing and intangibles; how countries are working together to improve tax compliance and cooperation; the relevance of the recent revision of the OECD’s Guidelines for Multinational Enterprises for tax planning; and how the OECD works with new members and non-members on tax matters.

Carol Doran Klein, USCIB’s vice president and international tax counsel, and Jeffrey Owens, director of the OECD’s Center for Tax Policy Administration.
Carol Doran Klein, USCIB’s vice president and international tax counsel, and Jeffrey Owens, director of the OECD’s Center for Tax Policy Administration.

Speakers at the event included:

  • Jeffrey Owens, head of the OECD’s Center for Tax Policy and Administration
  • Steven Miller, deputy commissioner of the IRS for services and enforcement
  • Pamela Olson, a partner with Skadden Arps and former assistant secretary of the Treasury for tax policy
  • Thomas Barthold, chief of staff of the Joint Congressional Committee on Taxation
  • Manal Corwin, deputy assistant secretary of the Treasury for international tax affairs
  • Masatsugu Asakawa of the Japanese finance ministry, incoming chair of the OECD Committee on Fiscal Affairs

“Informed, ongoing dialogue with the OECD secretariat and with OECD member states is crucial for global companies,” according to Carol Doran Klein, USCIB’s vice president and international tax counsel.  “The fact that this year’s conference took place against the backdrop of potentially far-reaching tax reform in the United States only adds to its importance.”

Attendees applauded the substance and organization of this year’s tax conference.  “As always, the event was interesting, well-organized and flawlessly executed,” said Linda H. Fernandez of Eli Lilly.

The conference agenda is available at www.uscibtax.org.  Photos from the event can be accessed by clicking here.

Conference supporting organizations included the International Fiscal Association – USA Branch, the International Tax Policy Forum, the National Foreign Trade Council, the Organization for International Investment, the Tax Council Policy Institute, the Tax Executives Institute and the Tax Foundation.

Staff contact: Carol Doran Klein

More on USCIB’s Taxation Committee

OECD website

 

ICC Denounces G20 Rise in Protectionism

Published on June 3, 2011

USCIB’s affiliate the International Chamber of Commerce (ICC) is urging G20 leaders to keep markets open to trade, following worrying results from a recently released WTO-OECD-UNCTAD report that G20 countries are increasing protectionist measures.

The joint report by the World Trade Organization (WTO), the Organization for Economic Cooperation (OECD) and United Nations Committee on Trade and Development (UNCTAD) on G20 trade and investment measures, released May 24, 2011, found that more new trade restrictive measures have been implemented in the past six-month period than in any previously reported period. From October 2010 to April 2011 alone, G20 members implemented 30 new export restrictions.

This occurred despite the G20’s reaffirmation at the 2010 Seoul Summit to resist protectionism until the end of 2013. G20 leaders had agreed early that year, at their Toronto Summit, to withdraw any protectionist measures in the pipeline, including export restrictions and WTO–inconsistent measures for stimulating exports. The WTO-OECD-UNCTAD report reveals that the exact opposite is taking place.

The joint report further confirms an ICC-commissioned study, released by the Peterson Institute for International Economics in 2010, stating that all G20 countries have implemented protectionist trade measures since 2008. Concerns in the global business community about this protectionist trend have prompted ICC to put into place its own indicator to monitor market openness. The Open Market Index will provide an annual ranking of the 50 top-trading countries by order of their openness to trade and investment. This private sector indicator to monitor protectionism will be launched ahead of the G20 Summit – being held in Cannes, France on November 3-4, 2011.

Staff contact: Rob Mulligan

More on the ICC-commissioned study by the Peterson Institute for International Economics

More information on Global Trade Alert

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With Business Input APEC Officials Make Progress Toward This Falls Honolulu Summit

Published on May 26, 2011
Trade ministers from the 21 APEC economies at the senior officials meeting in Big Sky, Montana.
Trade ministers from the 21 APEC economies at the senior officials meeting in Big Sky, Montana.

USCIB was among the business groups that participated in the second 2011 APEC (Asia-Pacific Economic Cooperation) senior officials meeting, which took place last week in Big Sky, Montana. APEC groups 21 leading economies from around the Pacific rim. The United States is hosting this year’s APEC leaders meeting in Honolulu in November as well as three senior officials meetings (the first in Washington, DC, in March, the third in San Francisco in September).

U.S. companies and business associations played an important role in the Montana meeting, helping inform the discussions and laying the groundwork for a CEO summit in Hawaii. Business input to APEC is facilitated at the regional level via the APEC Business Advisory Council, and at the U.S. level through the National Center for APEC.

Executives held numerous breakout sessions and briefings with leading economic officials from around the region. Jonathan Huneke, USCIB’s vice president for communications and public affairs, took part in the Big Sky sessions and chaired meetings with trade officials from Mexico and Malaysia.

Much of the discussion among government officials centered on trade, and on ensuring that small and medium-sized businesses can benefit from commercial opportunities in the APEC region. Trade ministers including U.S. Trade Representative Ron Kirk explored ways to bolster the multilateral trading system in light of the stalled Doha Round of trade talks in the WTO. Business groups said they remained committed to Doha and urged governments not to abandon the talks. The U.S. delegation also included Commerce Secretary Gary Locke and other top officials.

Other key developments at the Big Sky meetings included:

  • Adoption of a code of ethics for the region’s medical devices industry to improve the quality of health care and encourage innovation.
  • Signing of an agreement between APEC and the World Bank to strengthen collaboration on food safety in the Asia-Pacific region, which accounts for over 40 percent of the world’s population and nearly half of global food production.
  • Release of an APEC survey on structural reform, which said APEC economies have made significant progress in reforming regulations to better assist businesses.
  • Discussions with private-sector leaders on ensuring food security in the region in light of growing populations, insufficient gains in agricultural productivity and limited natural resources.

Looking ahead, USCIB will play an active role at the third senior officials meeting in San Francisco (September 12-26), leading on issues such as chemicals policy, data protection, customs and trade facilitation, energy, and women in the workplace.

Separately, USCIB applauded introduction of the APEC Business Travel Card (ABTC) Act in the U.S. House of Representatives and urges its passage as soon as is practicable.

 

APEC website

National Committee for APEC website

USCIB Makes Recommendations to Improve Customs “Trusted Trader” Program

Published on May 24, 2011

At a March 15 meeting with U.S. Customs and Border Protection (CBP) Commissioner Alan Bersin, USCIB presented a provisional list of 18 benefits envisioned for participants in CBP’s trusted trader program, the Customs-Trade Partnership Against Terrorism (C-TPAT).  In April, Commissioner Bersin shared his goal of quadrupling C-TPAT membership over the next five to seven years with the trade community at the 2011 CBP Trade Symposium.  The following day, at a joint meeting with the ICC Committee on Customs and Trade Regulations, the USCIB Customs Committee concluded that USCIB could help Commissioner Bersin meet this goal by finalizing its provisional list of C-TPAT benefits.

With the support of the American Association of Exporters and Importers (AAEI), USCIB has provided a final list of eighteen C-TPAT benefits to Commissioner Bersin.  In a May 17 joint letter, USCIB and AAEI encouraged CBP to strengthen C-TPAT, to focus its core benefits on the pre-trade and post-trade events of the supply chain, and to develop substantial commercial benefits for Tier 2 and Tier 3 C-TPAT participants.

More on USCIB’s Customs and Trade Facilitation Committee