Growth, Jobs and Open Markets Archives

USCIB Supports HLPF Side-Event on Agriculture and Food

Published on July 17, 2017

With the UN High-Level Political Forum taking place in New York from July 10-19, USCIB has been on the ground, starting with Agriculture and Food Day, an event hosted by the International Agri-food Network (IAFN) on July 13, which summarized the importance of targeting the agricultural sector and food issues in order to reach the Sustainable Development Goals (SDGs) by 2030.

The SDGs help to guide people and the planet towards a sustainable future, and they were created to measure progress and achievements towards this series of 17 goals adopted by the UN General Assembly under the moniker Agenda 2030.  During the High-Level Political Forum, the UN Secretariat works with its member states to discuss paths to implementation and to track progress on the SDGs.  IAFN has advocated for several years during the SDG development process on the need for a stand-alone goal on sustainable agriculture and food security; this goal is SDG2, Ending Hunger.

However, “solutions cannot address just one goal, but must look to make a difference to several at once,” noted Mike Michener, USCIB’s vice president for product policy and innovation who also covers USCIB’s work on health and food and agriculture. “The purpose of Agriculture and Food Day was to examine how focusing on agricultural and food policy could achieve not only Goal 2 but also make substantive contributions to the achievement of the other 16 goals.  Investments made in agriculture — the dominant occupation for the world’s poorest people — can accomplish much beyond Goal 2, including improvements in health, incomes, trade, infrastructure, and the environment,” he said.

IAFN partnered with a number of leading organizations to host “Agriculture and Food Day” to celebrate, discuss, negotiate, analyze, and brainstorm around the role of the agricultural and food sector in relation to the implementation of the SDGs. The day included a thematically-focused plenary session with high-level speakers including high-ranking UN diplomats, a series of roundtable discussions on inter-linkages in SDGs, and a dynamic luncheon featuring of youth in agriculture with the goal to raise awareness of the critical need for investment in Goal 2, Zero Hunger. IAFN hosted the event with the Farming First coalition, a group that advocates for agriculture programs to be farmer-centered and knowledge-based.

USCIB is also participating in the SDG Business Forum on July 18.

Donnelly Co-authors Report on “Commercial Diplomacy”

Published on July 17, 2017
Shaun Donnelly

USCIB Vice President Shaun Donnelly has recently co-authored a new report on commercial diplomacy under the auspices of the American Academy of Diplomacy (AAD), a prestigious group of leading former senior U.S. government diplomats.  Donnelly, like former USCIB President and current USCIB Board Vice Chair Tom Niles, was elected to AAD membership after retiring from a long career as a Foreign Service Officer at the U.S. Department of State.

Over the past two years, Donnelly has co-led, along with retired Ambassador and former Acting Director General of the Foreign Commercial Service Chuck Ford, AAD work on two reports covering U.S. government support (focused on Department of Commerce, Department of State and U.S. embassies and consulates abroad) to assist U.S. business win sales, contracts, investment opportunities and other deals against increasingly strong foreign competition, often benefiting from much more effective advocacy and support programs from competitor governments.

The original report Support for American Jobs, Part I from March 2016 has now been supplemented with Part II from June 2017, which goes into further detail, at the request of the Commerce and State Departments, on three specific issues, including a detailed analysis of the commercial diplomacy programs of leading competitor governments.

“The “Executive Report” cover document addressed to leaders in the Trump administration paints a clear picture of foreign governments stepping up their games in support of their own companies, large and small, and suggests ways the new administration might be able to launch a major commercial diplomacy initiative do the same to help U.S. companies win on increasingly competitive international battlefields,” said Donnelly.

Donnelly and his AAD colleagues will be meeting with administration and congressional leaders over the coming weeks, seeking increased awareness of and action on the issue.  One of the potential merits of the nexus of commercial diplomacy issues is that it avoids some of the contentious atmosphere that surrounds U.S. trade policy debates (e.g. NAFTA, Trans Pacific Partnership, steel, World Trade Organization, etc.) and simply focuses on how the U.S. government might be better able to help our companies (and thereby our workers, shareholders and communities) win contracts, sales and deals and whatever trade policies the U.S. government is pursuing.

If you or colleagues at your organization have questions or would like to discuss the reports or commercial diplomacy in general, or if you’d like to help move these issues forward, feel free to contact Donnelly at sdonnelly@uscib.org.

Administration Goals for Modernizing NAFTA Include Many USCIB Priorities but Leave Out Key Issues

Published on July 14, 2017

Washington, D.C., July 17, 2017 – The United States Council for International Business (USCIB), which represents America’s top global companies and helps exporters of all sizes do business across borders, is encouraged that the objectives for modernization of the North American Free Trade Agreement (NAFTA) released by the office of the U.S. Trade Representative (USTR) today cover many of the issues proposed in USCIB’s submission last month. But the group said some of the objectives leave out references to key business priorities such as investor-state dispute settlement (ISDS).

USCIB President and CEO Peter M. Robinson said: “The fact of the matter is that a great many businesses base their success on increasingly seamless integration of the North American trading space. U.S. negotiators need to start from the premise that three-way trade and investment among the NAFTA partners should be enhanced, not restricted. A modernization effort must include strong investment protection provisions, including effective ISDS. We encourage USTR to maintain an intensive dialogue with affected U.S. stakeholders, including business, as they flesh out more detailed objectives, strategies and priorities.”

Last month, USCIB released its priorities for NAFTA modernization, calling on the administration to update the 23 year-old pact to accommodate new realities in global commerce, including the rise of the digital economy, while keeping what works from the original agreement.

USCIB urged the administration to update and strengthen key NAFTA provisions, including the liberalization and protection of investment flows, protection of intellectual property, customs and trade facilitation, regulatory cooperation, and improved agricultural market access. It also recommended tackling new areas not included or anticipated in the original agreement two decades ago, such as the digital provision of goods and services, data localization requirements, and state-owned enterprises.

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. As the U.S. affiliate of several leading international business organizations, USCIB provides business views to policy makers and regulatory authorities worldwide, and works to facilitate international trade and investment.

Contact:
Jonathan Huneke, USCIB
Tel: +1 917 420 0039
jhuneke@uscib.org

Tax Conference in Germany Focuses on Growth

Published on July 10, 2017

While the conceptual phase of the Base Erosion and Profit Shifting (BEPS) Process has been accomplished, it is now crucial to monitor its implementation and to alleviate some of the overly burdensome effects of the BEPS Project. In light of this, the International Chamber of Commerce, Business at OECD (BIAC) and BusinessEurope organized a discussion on June 30 in Munich, Germany on tax policy issues, with the aim to facilitate cross border trade by reducing double taxation, simplifying tax rules, strengthening tax payers´ rights, fostering a growth oriented tax policy and increasing tax certainty.

Business federations jointly brought together private sector leaders, OECD representatives, governments, international organizations, and leading academics to discuss Growth and Taxes. Business at OECD Secretary General Bernhard Welschke underlined how enhancing cooperation can help to achieve greater efficiency, certainty and effectiveness of rules, and support tax policies that foster economic growth.

USCIB Tax Committee Chair Bill Sample (Microsoft) served as a panel participant discussing the importance of tax certainty, especially by tax administrations, to encourage investment in a country. “Many non-tax factors impact business investment decisions so countries need to consider tax incentives as a lever to balance out the pluses and minuses of the non-tax factors,” said Sample during his panel. “Tax certainty may be equally or even more important than tax rates for many jurisdictions; and administrative tax certainty may be most important in many jurisdictions.”

The conference also discussed dispute prevention and approaches to support cooperative compliance, as OECD reports major progress towards a fairer and more effective international tax system, including a recently launched report to G20 leaders ahead of last week’s G20 Hamburg Summit.

Connect to Business Opportunities in Southeast Europe

Published on July 10, 2017

The markets of Southeast Europe are investing in infrastructure and market development, representing an opportunity for U.S. companies to increase sales and find a strategic foothold to grow in Europe. The region features strategic ports and bustling overland trade routes to established markets, and these individual markets are all heavily investing in infrastructure growth and market development.

Trade Winds, the largest annual U.S. government-led trade mission, will lead U.S. companies and organizations to Southeast European markets in October 2017, to connect them to promising business opportunities. In nine international Trade Winds events, the U.S. Commercial Service team has facilitated more than $240 million in export sales for U.S. companies. The visit will take place from October 16-24, 2017.  The deadline for registration is August 12.

“USCIB members looking to expand into the rapidly developing markets of Southeast Europe can take advantage of this valuable service provided by the U.S. Department of Commerce,” said Mike Michener, USCIB’s vice president for product policy and innovation. “The trip also conveniently coincides with several UN meetings and conferences in October in Rome and Geneva,” added Michener.

More information is available here or by calling Dorette Coetsee at the U.S. Commercial Service in Columbia, SC, at 803-255-2623.

G20 Reaffirms Commitment to Resist Protectionism

Published on July 10, 2017
German Chancellor Angela Merkel at G20 Summit

Leaders of the Group of 20 major economies wrapped up their summit in Hamburg, Germany by issuing a communiqué that forged compromise language over trade enforcement and trade liberalization, and advanced discussion of the digital economy.

But the Trump administration appeared isolated on climate change, with the other G20 nations recommitting themselves to action under the Paris Climate Agreement despite the U.S. pledge to withdraw.

“G20 leaders said the right words about resisting protectionism which will be essential in ensuring access to good jobs in the 21st century,” said USCIB President and CEO Peter M. Robinson, who serves as a co-chair of the B20 (Business 20) Employment and Education Task Force.

In their final statement, the G20 leaders committed to keeping global markets open, “noting the importance of reciprocal and mutually advantageous trade and investment frameworks and the principle of non-discrimination.”

German Chancellor Angela Merkel said at a closing press conference on Saturday: “I am satisfied that we managed to say clearly that markets need to remain open.”

John Danilovich, secretary general of the International Chamber of Commerce, said: “We commend the G20’s focus on strengthening the multilateral trading system. A strong, rules-based trading system is a pre-requisite to achieve the G20 leaders’ laudable ambition of making globalization work for all.”

USCIB’s Robinson also welcomed progress made by the G20 governments on enhancing digital commerce.

“We agree with the leaders statement that continued growth and innovation spurred by the digital economy will be essential to meeting the needs of people around the world,” he said. “It’s important that governments maintain a fundamentally pro-investment and pro-competition approach to the digital economy.”

But Robinson had a mixed reaction to the final language on climate change action. “Other members of the G20 are ramping up their cooperative efforts and joint action on climate,” he said. “so we encourage the United States to remain connected and involved in international collaboration for energy security and innovative technology deployment that is essential both for U.S. prosperity as well as tackling climate challenges at home and abroad.  USCIB continues to encourage the Administration to consider how to advance these efforts in the UN Climate treaty while it considers ways to re-enter the Paris Agreement.”

Regarding education and employment, Robinson emphasized the importance of educating, training and retraining to gain the necessary skills for the future of work, noting “workers need to be able to successfully adapt to change.”

USCIB Foundation to Host Event on Apprenticeships

Published on June 30, 2017

With widespread praise over the value of apprenticeships in lieu of a traditional four-year college experience, President Donald Trump and Labor Secretary Alexander Acosta have launched a series of initiatives that call on Congress to pass reforms expanding apprenticeships and to raise awareness about the viable career paths apprenticeships can offer. Apprenticeships have even become a priority for the B20 and G20 leaders.

Given the role that apprenticeships play in supporting the development of business-ready skills for youth and in realizing goals of inclusive economic growth and an equitable transition to a more sustainable world, The USCIB Foundation, which is the educational and research arm of USCIB, has partnered with Citi and the Global Apprenticeship Network (GAN) to organize a roundtable discussion focused on apprenticeship models and practice in the U.S.

The roundtable will include representatives of approximately 25 companies who are either actively implementing apprenticeship programs or are interested in getting started.  John Ladd, the administrator for the Office of Apprenticeship of the U.S. Department of Labor, will join the meeting.

Our partners in this event include:

  • The Global Apprentice Network (GAN), a business-driven alliance with the overarching goal of encouraging and linking business initiatives on skills and employment opportunities for youth – notably through apprenticeships.
  • Citigroup, committed to making a difference in youth unemployment, recently announced a global expansion of the Pathways to Progress initiative led by a Citi Foundation investment of $100 million to connect 500,000 young people, ages 16-24, to training and jobs over the next three years.

Business Promotes OECD Guidelines for Multinationals

Published on June 30, 2017

As the official U.S. affiliate of Business at OECD (BIAC), USCIB praised BIAC on its promotion of the OECD Guidelines for Multinational Enterprises (MNE Guidelines) last week during a high-level conference that it organized in Paris. In a recent statement, BIAC noted that it views the responsible conduct of companies across markets as stipulated by the MNE Guidelines to be an integral part of an open investment environment, while stressing the need for practical and manageable expectations.

USCIB’s Vice President for Corporate Responsibility and Labor Affairs Gabriella Rigg Herzog praised BIAC’s commitment noting, “USCIB supports the OECD Guidelines and the comprehensive framework of responsible business conduct practices they represent. We welcome BIAC’s strong commitment to promoting the OECD Guidelines and encouraging their implementation.”  

The OECD Guidelines include a unique implementation mechanism in the form of National Contact Points (NCP). “The experience with the NCP system has been mixed,” said Winand Quaedvlieg, chair of the BIAC Committee on Investment and Responsible Business Conduct. “In some cases, it had a clear added value for companies, in other cases it was criticized. It is therefore important to have a common understanding among all stakeholders about the nature of the NCP process as a platform for mediation and problem-solving in good faith, which is different from legal litigation.”

USCIB will continue to support BIAC as it works with the OECD to underline the conditions that must be in place to facilitate the proactive engagement of business in the process.

Donnelly Testifies on NAFTA at USTR-led Public Hearings

Published on June 30, 2017

With the Trump administration having served notice of its intention to modernize the North American Free Trade Agreement (NAFTA), USCIB has been advocating for modernization of certain aspects of NAFTA through op-eds, testimonies and meetings. Most recently, USCIB Vice President for Trade and Finance Shaun Donnelly presented USCIB views at the “NAFTA Testimony” hearings held on June 27 at the International Trade Commission (ITC). While held at the ITC, USTR was running the three days of public hearings. Staff from Commerce, State, Treasury, Department of Homeland Security, and Agriculture also sat on the panel and joined in questioning presenters.

Donnelly’s testimony stemmed USCIB’s written submission, which had been developed with member input, focused on NAFTA’s importance to U.S. business and that it should be updated given that it is no longer a “cutting edge” trade agreement. “By all means, update, modernize,” said Donnelly. “But NAFTA does not need a fundamental “root and branch” renegotiation. Give NAFTA a facelift, not a lobotomy,” he emphasized.

Donnelly also highlighted five key messages from USCIB’s written submission:

  1. Get strong digital economy provisions into NAFTA – e-commerce, cross border data flows, telecoms competition, prohibitions on data localization requirements.
  2. Update other key areas – e.g. standards and Technical Barriers to Trade (TBTs), cover new forms of services, strengthen IPR provisions and enforcement to incentivize innovation, develop a meaningful chapter on State-Owned Enterprises (SOEs).
  3. Update and strengthen customs and trade facilitation provisions; get higher de minimis levels.
  4. Strong investment provisions are essential. Implementation/arbitration through Investor-State Dispute Settlement (ISDS) is essential. ISDS works and it is important for many U.S. investors even in North America; don’t be seduced by criticism from the EU and NGOs about ISDS or the EU’s investment court proposal.
  5. Government Procurement chapter is important and its working. It’s balanced. Don’t rip it up. U.S. firms are selling a lot of goods and services to Canadian and Mexican government entities.

“Do the update quickly, seriously, trilaterally, in transparent manner, based on real issues of concern to the U.S. business community not with a political focus on bilateral trade balances or imposing unilateral trade barriers,” Donnelly concluded. “Work with U.S. business, we want to be partners in this important exercise.”

 

 

ICC Court Opens Case Management Office in Singapore

Published on June 30, 2017
Alexis Mourre, president of the ICC Court, Han Kok Juan, deputy secretary of MinLaw, John Danilovich, secretary-general of ICC and Indranee Rajah SC, senior Minister of State of MinLaw and Ministry of Finance

The Singapore Ministry of Law (MinLaw) and the International Court of Arbitration of the International Chamber of Commerce (ICC) announced last week that the ICC Court will set up a case management office in Singapore—aimed at boosting arbitration and serving the dispute resolution needs of businesses around the world.

MinLaw and the ICC Court announced their collaboration at the signing of a Memorandum of Understanding (MOU)—a milestone agreement—in Singapore on June 28. Under the terms of the MOU, MinLaw and the ICC Court will also work together to develop and promote Singapore as a seat and venue for arbitration in Asia through advancing thought leadership, developing talent and arbitration services and undertaking joint marketing.

The MOU was signed by Han Kok Juan, deputy secretary of MinLaw and Alexis Mourre, president of the ICC Court, witnessed by Indranee Rajah SC, senior minister of State of MinLaw and Ministry of Finance and John Danilovich, secretary-general of ICC at the 3rd ICC Asia Conference held in Singapore last week.

The ICC Court, headquartered in Paris, is one of the world’s leading arbitral institutions. In 2016, it administered almost 1,000 arbitral cases from around the world. The Singapore office will be the Court’s fourth overseas case management office—after Hong Kong, New York and Brazil—giving it a peerless global footprint. The new Singapore office is expected to commence operations in the first quarter of 2018 at Maxwell Chambers. It will take up about 2,000 square feet in the new Maxwell Chambers Suites, a conserved heritage building, which will be an expansion of Maxwell Chambers when the refurbishment works are completed in 2019.

The ICC Court has welcomed the conclusion of the MOU, emphasizing that the new case management team will form part of a unique international arbitration hub in Asia. “With its two case management teams in Hong Kong and Singapore, as well as its representative office in Shanghai, the Court is now able to offer a unique international arbitration platform across the entire Asian continent,” said Mourre.