Growth, Jobs and Open Markets Archives

USCIB Gears Up for APEC CEO Summit in Vietnam

Published on November 6, 2017

This week, USCIB’s Vice President of Product Policy and Innovation Mike Michener will attend the Asia-Pacific Economic Cooperation (APEC) CEO Summit in Da Nang, Viet Nam, as a business delegate and representative of the U.S. APEC Business Coalition.

Organized under the leadership of the National Center for APEC (NCAPEC), USCIB will be joining other Coalition and NCAPEC members on the ground, including CEOs and executives from USCIB member companies. NCAPEC serves as the designated 2017 U.S. Strategic Partner for the CEO Summit, Secretariat to the U.S. members of the APEC Business Advisory Council (ABAC) and as Chair and Secretariat of the U.S. APEC Business Coalition.

Throughout 2017, USCIB has addressed a number of issues through APEC to advance discussions across a range of issue. These include chemicals regulation, advertising self-regulation, data privacy, customs, and digital trade. USCIB members and staff have engaged in several APEC working groups, including the Chemical Dialogue, APEC Business-Customs Dialogue, Customs Procedures Virtual Working Group, Alliance for Supply Chain Connectivity, the Electronic Commerce Steering Group and Data Privacy Subgroup.

In Da Nang, Michener will meet with USCIB members, leaders from APEC economies and representatives of intergovernmental organizations to discuss member companies’ APEC priorities and USCIB’s work. They look forward to hearing from USCIB members in Da Nang, in addition to joining with Coalition partners, to advance common objectives.

“USCIB appreciates the numerous committed partnerships that APEC has established with the private sector,” said Michener. “These partnerships are addressing many economic opportunities, particularly on trade and regulatory issues, that will help foster greater economic integration among APEC’s twenty-one member economies.”

The upcoming APEC meetings in Da Nang include, in addition to the CEO Summit, the Concluding Senior Officials’ Meeting, Fourth APEC Business Advisory Council (ABAC) Meeting, APEC Ministerial Meeting and APEC Economic Leaders’ Meeting. USCIB has collected priority issues from its membership for 2018, and will have the USCIB 2018 APEC Priorities and Recommendations Paper available in Da Nang.

USCIB Meets with OECD Director to Discuss Health Work

Published on October 30, 2017

USCIB’s Food and Agriculture and Healthcare Working Groups met last week with Stefano Scarpetta, director of Employment, Labor and Social Affairs for the Organization of Economic Cooperation and Development (OECD). The meeting reinforced longstanding USCIB and Business at OECD cooperation in other issue areas and the need to improve the engagement between business and the OECD Health Committee.

USCIB outlined four areas of recommendations to Scarpetta in the hopes of improving future interactions with member states and the health division secretariat, including helping member states understand the role of Business at OECD and its national affiliates, tracking input from Business at OECD and national affiliates, increasing diversity in perspectives among OECD health division staff and better use of OECD expert groups.

“The OECD benefits from broad input from the private sector on its work on health policy.  We believe that increasing the number and diversity of business representatives allowed to attend OECD Health Committee and related expert group meetings can only improve OECD’s work in the health sector,” said Mike Michener, USCIB’s vice president for Product Policy and Innovation who leads USCIB’s work on health, food and agriculture.

Michener noted that while concerns remain, good progress was made in initiating an improved dialogue with the OECD Health Committee going forward.

Hampl Raises Anti-Corruption and Transparency Concerns at SOE Meeting

Published on October 27, 2017
USCIB’s Eva Hampl speaks on panel at OECD meetings on SOE’s in Paris

Eva Hampl, USCIB’s director for investment, trade and financial services was in Paris last week representing USCIB at a special roundtable at the OECD on Integrity, the Fight Against Corruption and Responsible Business Conduct in the State-Owned Enterprises (SOE) Sector.

As a discussant on the issue of transparency, Hampl noted that SOEs are increasing in global commerce, where 22% of the world’s largest 100 firms are effectively under state control. “As SOEs proliferate, they disadvantage companies operating without state support or control,” warned Hampl.

The OECD Foreign Bribery Report, which was published December 2014 and is based on data from the 427 foreign bribery cases that have been concluded since the entry into force of the OECD Anti-Bribery Convention in 1999, found that bribes were offered or given most frequently to employees of SOEs at 27% of the total cases.

“SOEs are particularly vulnerable to corruption due to factors such as a close relationship between government, politicians and the SOE senior management, and in some cases lack of transparency and reporting,” said Hampl. In addition to the foreign bribery report, OECD research has found that 43 % of SOE employees surveyed have witnessed corruption and other rule-breaking in their company in the last three years.

“Corruption is a cost, also for SOEs,” Hampl added. “The OECD has stated that disclosure and transparency are some of the main concerns regarding market distortions caused by SOEs – the other concern is that SOEs are acting as agents of a sovereign government. The focus on transparency, in which space the OECD has done further work, is certainly important, however with the caveat that in the case of leveling the playing field as to SOEs, it is not a goal in itself.”

Hampl added that there has been a concerning global trend in recent years toward transferring liability from governments onto companies. “This is something that needs to be addressed. To truly level the playing field between SOEs and companies competing in the global market, SOEs must be held to the same standards.”

Following the roundtable, Hampl also participated in the consultation with the OECD Working Party on State Ownership and Privatization Practices, where she reiterated many of the points made at the roundtable, as well as emphasized the importance of the OECD to focus on the demand side of bribery.

Additionally, on the afternoon of Wednesday November 29, USCIB Vice President for Trade and Financial Services Shaun Donnelly will offer business perspectives on a panel discussion on “The OECD Anti-Bribery Convention at 20:  Successes and Challenges for the Future” organized by the Coalition for Integrity on the margins of their annual gala dinner later that evening.   Panelists being finalized but those invited include: Lucinda Low, member, Board of Directors, Coalition for Integrity, Nicola Bonucci (OECD) and Bruce Swartz, Department of Justice.

Business at OECD Calls for Integrated Health Policies to Stimulate Growth and Productivity

Published on October 27, 2017
OECD Secretary General Angel Gurria (left) makes remarks at the Health Forum

Well-designed health policies that are put into practice are essential for the growth and productivity of our economies and the well-being of our societies. This was the main message from private sector, government representatives, and the OECD gathered for the 2nd Business at OECD (BIAC) Annual Forum on Health.

The Forum saw the work undertaken by the private sector to develop truly integrated healthcare, foster innovation, and promote balanced choices for improving well-being. “The digital transformation of healthcare systems will provide fresh opportunities for better care, newer treatments and greater focus on the needs of patients,” said Nicole Denjoy, chair of the BIAC Health Committee. “To achieve this, we need policies that create the right incentives and collaborative environments to drive investment in innovation and technology” she added.

Experts also addressed efforts to encourage balanced nutrition and active lifestyles as an important part of the fight against non-communicable diseases. Speakers stressed the critical role that policy coherence in the fields of health, trade, finance, industry, and education sectors plays in supporting growth and productivity. Commenting on the role of international collaboration, OECD Secretary General Angel Gurría stated, “Poor health harms people, lowers productivity, and ultimately undermines growth. The OECD is supporting the business community’s efforts to help shape the future of health policy and promote good employee and customer health”.

Also addressing Forum participants, World Intellectual Property Organization Director General Francis Gurry said “Innovation is vital for addressing the health challenges of today and tomorrow. But the innovation we need is more complex than ever before and requires greater collaboration, benefiting from a wide range of knowledge and expertise. We must provide a framework for bringing new medicines and technologies from concept and creation to production and patients. Intellectual property, in particular patents, are a necessary encouragement to this innovation.”

The Forum was moderated by Riz Khan, international journalist and TV host.

Donnelly Talks NAFTA and U.S. Trade Policy in Louisville

Published on October 27, 2017
Shaun Donnelly

USCIB Vice President for Investment Policy Shaun Donnelly traveled to Kentucky last week to speak to the Louisville Committee on Foreign Relations (LCFR) on “NAFTA and U.S. Trade Policy in the Trump Era.”  Donnelly’s speech drew upon USCIB’s strong public positions on the NAFTA renegotiation, the Trans Pacific Partnership (TPP) and U.S. global trade leadership in the World Trade Organization and beyond.

“The LCFR’s well-attended monthly dinner meeting generated considerable discussion with the audience and a broad consensus that the U.S. government should be working to update and strengthen NAFTA, not threatening to gut it or withdraw,” said Donnelly.

With major companies like UPS, Humana, and Yum Brands having headquarters or major hubs in Louisville plus leading U.S. distillers as well as key members of the Distilled Spirits Council of the U.S. (DISCUS) in the region, Louisville is significantly integrated into the global economy and NAFTA.  And the membership of the LCFR certainly understands that.

USCIB Op-ed: It’s Time to Save NAFTA

Published on October 27, 2017

USCIB President and CEO Peter M. Robinson has joined ICC Mexico Chair Maria Fernanda Garza and Canadian Chamber of Commerce CEO Perrin Beatty in publishing an op-ed, “A trade deal in distress: It’s time to save NAFTA,” in The Hill.

The op-ed has also been published in Spanish in the Mexican newspaper El Economista.

The op-ed comes as negotiators from the United States, Canada and Mexico take stock following the most recent round of talks, which exposed divisions between the U.S. and its two neighbors on a variety of issues.

The three business leaders express their support of efforts to improve and modernize NAFTA. They also state their concern over proposals that they believe are inconsistent with the principles of free trade and free enterprise, calling them “a dramatic reversal of long-held U.S. trade policy objectives” that “would greatly restrict, rather than enhance, cross-border commerce.”

Please click here to read the op-ed in its entirety on The Hill’s website.

Mastercard CEO Ajay Banga to Be Honored by USCIB at Annual Gala

Published on October 26, 2017

New York, N.Y., October 26, 2017 – Ajay Banga, president and chief executive officer of Mastercard, will be honored by the United States Council for International Business (USCIB), which represents America’s leading global companies. Banga will receive USCIB’s International Leadership Award at a gala dinner on November 28 at United Nations headquarters in New York, in recognition of Mastercard’s ongoing leadership to extend the benefits of an expanding economy to all segments of society.

“Ajay Banga and Mastercard were among the first to recognize that financial inclusion can set in motion a virtuous cycle of equitable economic growth,” said USCIB Chairman Terry McGraw, chairman emeritus of McGraw Hill Financial (now S&P Global). “As we saw during last month’s UN General Assembly opening, many companies have now joined this movement to support the UN Sustainable Development Goals. Mastercard was one of the first supporters when the global goals were launched in 2015, and the company has been working with the public and private sectors to use its technology and expertise to help address issues such as poverty, hunger and gender equality.”

McGraw added that the November 28 gala would provide a platform to underscore ongoing American and global business support for the SDGs, policies that promote more open cross-border trade and investment, and robust U.S. engagement with the UN and other international bodies.

Mastercard has connected more than 300 million people around the world to the formal economy, providing critical access to services that allow them to live and work with greater efficiency, security and dignity. Through innovative products such as Mastercard Aid Network, which is helping NGOs improve the delivery of humanitarian aid so that people can get back on their feet after a disaster, and Masterpass QR, which gives small businesses a low-cost way to accept digital payments, Mastercard is making progress towards the SDGs as well as advancing its mission to create a more inclusive economy.

Banga is a member of the President’s Advisory Committee for Trade Policy and Negotiations, and is a founding trustee of the U.S.-India Strategic Partnership Forum. He is a member of the U.S.-India CEO Forum, co-chairs the board of directors of the American India Foundation, and served as a member of President Obama’s Commission on Enhancing National Cybersecurity.

Banga serves on the executive committees of the Business Roundtable and the Financial Services Roundtable, and is vice chairman of the Business Council. He is a member of the board of overseers of the Weill Cornell Medical College and the board of governors of the American Red Cross. He also serves on the board of directors of The Dow Chemical Company.

Prior to Mastercard, Banga was chief executive officer of Citigroup Asia Pacific. He began his career at Nestlé in India and also spent two years with PepsiCo in India. He is a graduate of Delhi University and the Indian Institute of Management, Ahmedabad.

Established in 1980, USCIB’s International Leadership Award is presented annually to a leading CEO, international figure or institution, recognizing outstanding contributions to global trade, finance and investment, and to improving the global competitive framework in which American business operates. Recent recipients have included Randall Stephenson, chairman and CEO of AT&T, and Roberto Azevedo, director general of the World Trade Organization. More information on the event is available at www.uscibgala.com.

About USCIB:
USCIB promotes open markets, competitiveness and innovation, sustainable development and corporate responsibility, supported by international engagement and regulatory coherence. Its members include U.S.-based global companies and professional services firms from every sector of our economy, with operations in every region of the world, generating $5 trillion in annual revenues and employing over 11 million people worldwide. As the U.S. affiliate of the International Chamber of Commerce, the International Organization of Employers and Business at OECD, 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, jhuneke@uscib.org

USCIB Travels to Geneva to Deliver Employers Statement on Human Rights

Published on October 23, 2017
USCIB Vice President for Corporate Responsibility and Labor Affairs at the International Labor Conference earlier this year

USCIB’s Vice President for Corporate Responsibility and Labor Affairs Gabriella Rigg Herzog is attending this week’s Intergovernmental Working Group on transnational corporations and other business entities with respect to human rights (IGWG) in Geneva. This is the third meeting of the IGWG.

USCIB participated in each of the first two IGWG sessions in 2015 and 2016, which entailed general discussions on issues including the scope and applicability of a proposed binding instrument. On this point, business and key governments stated clearly their view that focusing solely on transnational corporations was not appropriate, and that any future instrument should cover all business entities – in particular national companies. The expectation was set that the third session would entail a discussion of proposed “elements” of what might get included in a binding instrument.

Just three weeks prior to this 3rd meeting, Ecuador released “draft elements” for a binding instrument. In response, Business at OECD, the International Organization of Employers (IOE), the International Chamber of Commerce (ICC) and the Foreign Trade Association have produced a final joint business statement, found here. USCIB, as the U.S. affiliate of IOE, Business at OECD and the ICC, was able to provide substantive input. This statement was shared with the Office of the UN High Commissioner for Human Rights, other business groups abroad, governments and other stakeholders, and it serves as the basis of business’ interventions during the IGWG session this week.

Rigg Herzog will be part of the IOE delegation and will participate in a panel on corporate liability on Wednesday.

USCIB Applauds 20 Years of Anti-Bribery Convention

Published on October 23, 2017

As the OECD celebrates 20 years of the Anti-bribery convention and 40 years of the FCPA (Foreign Corrupt Practices Act) this year, the U.S. Department of Justice, the Organization for Economic Cooperation and Development (OECD), and the U.S. Securities and Exchange Commission and Business at OECD will host a conference on “No Turning Back: 40 Years of the FCPA and 20 Years of the OECD Anti-Bribery Convention” on November 9th in New York. USCIB will be represented at this event by Eva Hampl, director for Investment, Trade and Financial Services.

USCIB, through its affiliation with Business at OECD, has been working with the OECD Working Group on Bribery, which monitors the implementation and enforcement of the OECD Anti-Bribery Convention. Through annual consultations and USCIB’s advocacy efforts, the Working Group has taken up issues that are of interest to U.S. business in their future work plan.

The conference will draw upon expertise and examine the major impact of ground-breaking instruments and corporate behavior and law enforcement priorities. It will explore the role of cooperation between nations in investigating and persecuting foreign bribery and the effectiveness of different approaches to corporate responsibility for bribery. The event will be hosted by NYU School of Law’s Program on Corporate Law and Enforcement. U.S. businesses interested in anti-bribery issues may learn more about the conference and register here.

Prior to the NY event, Hampl will also speak on a panel in a similar event on November 8 in Washington DC and hosted by American University Washington College of Law. Hampl will speak on a panel titled, “Leveraging the Convention and Addressing the Corruption Challenges Ahead,” alongside representatives from the Department of Justice, OECD’s Anti-Corruption Division and Global Financial Integrity. Registration for the Washington event is available here.

USCIB Urges Withdrawal of Global Tax “Toolkit”

Published on October 20, 2017

USCIB recently submitted comments to the Platform for Collaboration on Tax concerning a proposed draft “toolkit” on the taxation of offshore indirect transfers of assets. The Platform for Collaboration on Tax is a joint effort launched in April 2016 by the International Monetary Fund (IMF), the Organization for Economic Cooperation and Development (OECD), the United Nations (UN) and the World Bank Group (WBG). USCIB urged The Platform that the taxation of offshore indirect transfers should not be considered in the context of a “toolkit.”

The discussion draft proposes potentially significant shifts in taxing rights for “source” and “residence” countries.

“Decisions on significant shifts in taxing rights ought to be debated among countries at the appropriate multilateral fora and not resolved by guidance provided by the staff of international organizations without debate among the countries,” said Carol Doran Klein, USCIB’s vice president for tax policy.  “As such, the letter recommends withdrawal of the toolkit.”

Doran Klein added: “USCIB is concerned that tax authorities may treat the toolkits as authoritative guidance. Each toolkit should make clear that they are not authoritative and cannot override contrary guidance that is authoritative.”