USCIB Contributes to ILO Program on Decent Work in Global Supply Chains

USCIB had a strong and active presence at the International Labor Organization’s (ILO) technical meeting on Achieving Decent Work in Global Supply Chains in Geneva, February 25-28. USCIB Vice President for Corporate Responsibility and Labor Affairs Gabriella Rigg Herzog, as well several USCIB members, represented U.S. business at the meeting.

This was the third meeting on the topic of decent work in global supply chains, a project which was launched at the 2016 ILO International Labor Conference. The purpose of this recent meeting was to assess the failures that lead to decent work deficits in global supply chains and identify the salient challenges of governance to achieving decent work in global supply chains. The meeting also considered the types of guidance, programs, measures, initiatives or standards that are necessary to promote decent work and/or facilitate reducing decent work deficits in global supply chains.

“Employers welcome the opportunity for constructive collaboration between the private sector, governments and workers to find lasting solutions to decent work deficits in supply chains,” said Herzog.  “Employers emphasized that companies must comply with the law, respect human and labor rights and should use their leverage to push business partners to do the same.  However, systematic issues like child labor, forced labor, discrimination and disrespect for occupational safety standards cannot be solved by any one business or the business community as a whole.  Employers encouraged collaboration among all social partners to increase governmental capacity to pass, implement and enforce labor laws that adhere to international standards.

USCIB Congratulates Daren Tang on New Role as WIPO Director General

Daren Tang
Photo Credit: EPA-EFE

USCIB issued a statement on March 5, congratulating Daren Tang, Singapore’s chief executive of intellectual property, on his election to the post of director general for the World Intellectual Property Organization (WIPO).

The WIPO Coordination Committee, which comprises eighty-three member states, met on March 4, and held two rounds of voting from an initial list of six candidates. According to USCIB Vice President for Product Policy and Innovation Mike Michener, Kazakhstan’s candidate withdrew her candidacy ahead of the first round of voting. Following the first round, the candidate with the least votes, from Peru, was eliminated. Two other candidates – from Colombia and Ghana – withdrew their candidatures ahead of the second round of voting. Tang prevailed in the second and final round of voting with fifty-five votes; China’s Binying Wang received twenty-eight votes. The WIPO General Assembly will meet in an extraordinary session on May 7-8, 2020, to confirm the Coordination Committee’s nomination.

The term of the current Director General, Francis Gurry, ends on September 30, 2020. A delegation of USCIB members met with Director General Gurry during USCIB Geneva Week in May 2019.

USCIB President and CEO Peter Robinson commended WIPO member states and the U.S. Administration for supporting Mr. Tang:

“The election of Mr. Tang as Director General of the WIPO is good news for American business and entrepreneurs, as well as for the global economy and rule-of-law.  Mr. Tang understands the importance of intellectual property rights to all those whose livelihoods depend on the ingenuity and creative genius of inventors, artists and the companies who employ them. There is a clear correlation between economic growth and the development of new inventions, technologies and creative products that are protected by patents, trademarks and copyrights.  USCIB applauds the United States Patent and Trademark Office (USPTO) Director Andrei Iancu, Ambassador Andrew Bremberg and his team in Geneva, and the State Department Bureau of International Organization Affairs for their hard work and support of Mr. Tang’s candidacy. We look forward to continuing our work with WIPO to protect intellectual property as a means of driving global innovation, investment, and economic opportunity.”

Hampl Facilitates Discussion on WTO Digital Trade Negotiations

World Trade Organization (WTO) members met earlier this month in Geneva for their seventh round of negotiations of a plurilateral agreement on electronic commerce. Negotiations started last year on this critical issue, and there will be two further rounds in Geneva to work toward an outcome by the WTO Ministerial, which will take place in June in Kazakhstan. Following the first round of negotiations this year, USCIB Senior Director for Investment, Trade and Financial Services Eva Hampl moderated a session February 25, in Washington DC around expectations and priorities for the talks leading up to the Ministerial. The panel included representatives from Siemens, IBM, and the office of the U.S. Trade Representative.

“USCIB supports these negotiations to update the WTO’s digital trade framework, including support for a permanent ban on customs duties’ application and other customs processes on electronic transmissions for all WTO members.,” said Hampl. “We are encouraged by progress that was made last year and look forward to a high-standard outcome that includes important issues like data flows and data localization.”

This event was organized by the Association of Women in International Trade (WIIT).

USCIB Priorities for the World Telecommunication Standardization Assembly

Ahead of November’s World Telecommunication Standardization Assembly (WTSA-20) in Hyderabad, India, USCIB prepared priorities for the U.S. government delegation to pursue. The recommended priorities included avoiding premature regulation or standardization of emerging technologies to ensure future investments in markets all over the world, avoiding top-down mandates on internet protocols, and advocating for resolutions that bind the scope of study groups to the ITU Telecommunication Standardization Sector’s (ITU-T) telecommunication/ICTs remit.

“USCIB holds in high value the work of the ITU-T in the development of international standards that promote the interoperability of telecommunication networks. In recent years, however, the T-Sector’s workstream has expanded into areas in which we do not believe the ITU has the expertise or mandate,” said USCIB Vice President for ICT Policy Barbara Wanner. “The WTSA-20 presents a key opportunity to ensure that the ITU-T’s structure and work program remain firmly rooted in its technical telecommunication/ICT standardization core competency. USCIB is committed to working with the U.S. Government to identify opportunities for constructive engagement that helps to advance U.S. policy objectives.”

The letter also stressed that further expanding the WTSA’s work program beyond its proper remit would compromise the industry’s ability to address Internet governance-related issues and explore standards and best practices for emerging technologies that are more effectively addressed in existing multistakeholder policymaking and standards-setting bodies.

USCIB Urges US Participation in WTO’s Procurement Agreement

USCIB joined over twenty industry associations in signing a letter to high-level government officials emphasizing the critical importance of continued U.S. participation in the World Trade Organization (WTO) Government Procurement Agreement (GPA). The letter was sent to United States Trade Representative Robert E. Lighthizer, Secretary of the Treasurer Steven T. Mnuchin, Secretary of Commerce Wilbur Ross, and National Economic Council Director Lawrence Kudlow.

The letter argues that the GPA provides benefits to the U.S. economy, businesses and workforce by empowering the United States to negotiate reciprocal terms under which GPA signatory countries open their government procurement markets to U.S. companies and commit to transparency and procedural protections that support the rule of law.

“The GPA is the only part of the WTO system that provides binding guarantees of the right to sell to foreign governments (which are not covered by other WTO disciplines). The GPA is also unique among WTO plurilateral agreements in that only the forty-seven current country signatories to the agreement benefit from and can enforce its binding commitments,” the letter stated.

Additionally, the letter warns that if the U.S. withdrew from the GPA, it could no longer negotiate the terms under which China could join the GPA. As a result, other GPA signatory countries would be less likely to demand comprehensive access to Chinese government procurement markets.

USCIB Supports Event on Gender Equality in Sciences, Education

In celebration of the five years since the United Nations formally recognized the need to increase gender equality in the sciences to support implementation of the Sustainable Development Goals (SDGs), the Royal Academy of Sciences International Trust (RASIT), with co-sponsorship from USCIB and the International Chamber of Commerce (ICC), hosted the 5th International Day of Women and Girls in Science Assembly from February 11-12 at the UN headquarters in New York.

The event drew widespread support and interest from countries such as Hungary, Zambia, Montenegro, St. Kitts and Nevis and Portugal, as well as UN agencies, including the UN Conference on Trade and Development (UNCTAD), the World Intellectual Property Organization (WIPO) and the International Telecommunications Union (ITU). Academics, UN officials, ambassadors, royalty, young scientists and business representatives, including USCIB Assistant Policy and Program Manager Daniella Goncalves, joined the event to discuss the forum’s theme of driving investment in equality in science, technology and innovation in the digitalization era for inclusive green growth.

According to Goncalves, several young women, as young as eleven, made inspiring interventions, detailing their efforts to bring about equity through robotics and coding applications, use of emerging technology in agriculture and irrigation, medicine and more.

“Together, the accounts illustrated a pressing need for movement in the gender pay gap, skilling and access to research, while simultaneously displaying the work of the next generation of female scientists and technologists in solving these issues,” said Goncalves.

Lithuanian Business Delegation (ICC Lithuania) Visits USCIB

The Lithuanian Business Confederation (LVK or ‘ICC Lithuania’) visited USCIB’s New York office on February 3 to meet with USCIB’s President and CEO Peter Robinson and other policy staff. LVK’s General Manager Andrius Nikitinas, Project Director Gabrielė Gaubienė and Senior Policy Advisor Ineta Rizgelė led the delegation of over twenty LVK member representatives.

With a membership base consisting mostly of Small and Medium Enterprises (SMEs), the Lithuanian companies and industries represented included architecture, residential and commercial design, solar panel manufacturing, mattresses, software for cargo transportation and food.

“We appreciated the opportunity to meet with our ICC Lithuania partners,” noted USCIB President and CEO Peter Robinson. “The meeting allowed us to better understand each other’s structures, policy priorities and target audiences.

 

 

Business at OECD Head Shares 2020 Policy Priorities With USCIB

Business at OECD’s Russel Mills (left, center) with IOE’s Shea GoPaul and USCIB policy staff

Secretary General of Business at OECD (BIAC) Russel Mills visited USCIB’s Washington DC and New York offices the week of February 3 to update staff on Business at OECD and OECD priorities for the year.

Mills shared that environment, biodiversity, plastics and climate change issues are moving to the top of the agenda, however there will also be a mushrooming of digitization plans and digital economy work related to changing business models and digitally enabled companies. Mills also noted that policies around digital taxation and re-skilling will be on top of the agenda for both organizations.

“We really valued our time with Russel, which gave us an opportunity to touch base on our respective organizations’ policy priorities,” said USCIB President and CEO Peter Robinson. “USCIB looks forward to a productive year working with BIAC to help drive the work of the OECD.”

USCIB Supports US–Singapore Joint Statement on Financial Services Connectivity

Washington DC – February 6, 2020 – The U.S. Council for International Business (USCIB) today voiced its support for the recent U.S. – Singapore Joint Statement on Financial Services Data Connectivity. We applaud this holistic approach to cooperation on the critical issue of Data Policy.

USCIB further recognizes the importance of ensuring seamless transfer of data across borders in conjunction with the business of a financial service provider. We support fostering greater understanding of this important public policy issue and acknowledge the importance of unfettered data connectivity and its role in global trade, innovation and economic growth.

Link to the Joint Statement by U.S. – Singapore on Data Connectivity:

https://home.treasury.gov/news/press-releases/sm899

USCIB Supports Respect for Arbitration Awards in U.S. GSP Program

USCIB Vice President Shaun Donnelly (left) and Chevron Supervising Counsel Andres Romero-Delmastro (right) testifying as panelists before the US Government’s GSP Subcommittee

USCIB went on the record at the January 30 Public Hearing of the USTR-led interagency Generalized System of Preferences (GSP) Subcommittee, supporting respect for the GSP eligibility criteria, specifically the need for “respecting and enforcing international arbitral awards.”  USCIB Vice President for Investment Policy Shaun Donnelly joined member company Chevron as the two business experts testifying on the specific issue of Ecuador’s continuing eligibility for GSP in light of the country’s very troubling record in a long-running major investment arbitration case filed by Chevron.

USCIB joined Chevron in recommending that, in light of Ecuador’s continuing refusal to enforce final arbitral awards by the panel, Ecuador’s access to GSP unilateral trade preferences should be suspended until they come into full compliance with those panel orders. According to Donnelly, after a senior official from the Ecuadorian Attorney General’s office presented the government’s case, a senior Chevron attorney detailed the long saga of Ecuadorian non-compliance. Donnelly then offered broader comments to the sub-committee on the important policy implications of Ecuador’s non-compliance and the importance of maintaining and enforcing the clear eligibility criteria laid out in the GSP statute. The Ecuador investment arbitration case was one of nine “country eligibility cases” on the agenda for public comments before the GSP subcommittee in its two-day meeting January 30-31.

“We at USCIB are strong supporters of the GSP program but it is not an entitlement for Ecuador or any other beneficiary developing countries” Donnelly explained.  “When a country refuses over many years to respect legitimate arbitral awards, in this case from an investment arbitral panel under the U.S.-Ecuador Bilateral Investment Treaty (BIT), the U.S. government’s patience must have a limit. Ecuador has clearly fallen short of the standards under the GSP statute. I think the detailed case presented by Chevron was compelling.”

Chevron and USCIB have been filing formal comments and testifying to the GSP sub-committee along these same lines regularly since 2012. USCIB has long been a leading voice in the U.S. and international business communities on the importance of foreign direct investment (FDI)  to economic growth and development in both the capital exporting and destination countries.  A vital key to incentivizing FDI flows in all direction is strong, transparent and enforceable investment protection, most often in the form of international investment agreements such as BIT treaties or investment chapters in Free Trade Agreements (FTAs.)  When investment disputes arise, access to and respect by all parties for the Investor-State Dispute Settlement (ISDS) arbitration system under those legally-binding investment agreements is essential.

USCIB has led international business advocacy on investment and ISDS issues, including respect for arbitral panel decisions, for many years including at meetings of the OECD, UNCTAD, and UN Commission on International Trade Law (UNCITRAL.)

To read Donnelly’s full testimony, click here.