USCIB in the News: Op-ed in The Hill on UN Funding

un_headquarters_lo-resUSCIB President and CEO Peter M. Robinson published a timely op-ed in The Hill addressing recent calls in Congress to withhold or withdraw U.S. funding for the United Nations. The op-ed, reprinted below, is also available on The Hill’s website.

This op-ed comes as President-elect Trump’s top appointees, including his proposed foreign policy team, are on Capitol Hill for Senate confirmation hearings. We encourage you to share the op-ed with your colleagues and others who may be interested.


The Hill

January 11, 2017

Walking away from the UN would harm US economic interests

By Peter M. Robinson, opinion contributor

With President-elect Trump’s key foreign policy nominees facing Senate confirmation hearings this week and next, some lawmakers on Capitol Hill are threatening to withhold or slash U.S. funding for the United Nations.

This would be a bad idea, both for American power and influence, and for our economic interests. It would be especially risky for U.S. companies and workers.

My organization — The United States Council for International Business — has represented American business views to the U.N. and other international organizations for decades.

We know the U.N. sometimes fails to measure up to our expectations, particularly when it and its specialized agencies have provided a platform for anti-business views. Why do we put up with this? Why shouldn’t we just take our chips and go home?

Quite simply, because we know that no country, including the United States, can go it alone. A strong U.S. presence in the U.N. enhances our influence and our overall security.

More than ever, at a time when terrorism, cybersecurity threats, disease pandemics and refugee crises can disrupt our lives, we need the kind of platform for close international cooperation and collective action that the U.N. can provide.

This is especially true for American companies with customers, employees and operations around the world. While we may not agree with everything the U.N. does, it is simply not in our interest to withdraw support.

We in the private sector see an urgent need for the United States to stick up for its economic interests in the U.N.

For instance, in the negotiations that culminated in the 2015 Paris Climate Agreement, the U.S. had to push back hard against proposals to undermine protection for innovation and intellectual property rights, to assign historical liability for loss and damage from natural disasters, and to ban certain technologies or energy options important to U.S. energy security and climate risk reduction.

Without strong U.S. leadership, these initiatives would have carried the day, hampering American jobs and competitiveness.

At their best, the U.N. and similar bodies set global standards and develop rules that allow U.S. businesses to plan and invest.

Recent U.N. initiatives that have helped American business and our economy include agreements that support a fundamentally “hands-off” approach to the global Internet and guidelines laying out the roles and responsibilities of the private sector and governments in upholding human rights.

Moreover, the U.N. has recently developed the 2030 Sustainable Development Goals (SDGs), addressing an array of challenges, from ending global poverty and hunger to ensuring access to energy, for the next decade and beyond.

The SDGs were developed in close partnership with the private sector, which will be responsible for “delivering the goods” in many, if not most, measures of success.

So, is the U.N. perfect? Far from it, but withholding funding or walking away from the U.N. won’t change that.

Like it or not, it is part of the fundamental infrastructure for global economic activity. Like other infrastructure, the U.N. is desperately in need of repair to meet the needs of the 21st century.

If we play our cards right, this can be a century of American-led innovation and entrepreneurship. President-elect Trump’s administration should insist that the U.N. live up to its potential, defending and advancing U.S. interests in the influential world body.

Business will be there to help. Just last month, the U.N. afforded highly-selective Observer Status in the U.N. General Assembly to the International Chamber of Commerce (ICC), the business organization that represents enterprises across the globe in numerous U.N. deliberations.

This is an important sign of progress, indicating that the U.N. recognizes the need to work more effectively with business.

(Full disclosure: My organization serves as ICC’s American chapter and we pushed hard in support of ICC’s application.)

Congress should meet U.S. funding obligations and work with the Trump administration to hold the U.N. accountable to the U.S. and other member governments, as well as to economic stakeholders in the business community.

Strong engagement and leadership in the global body by the United States is an opportunity too important to lose. American security, jobs and economic opportunities are at stake if the U.S. were to indeed walk away.

Peter M. Robinson is president and CEO of the United States Council for International Business. He is an appointee to the President’s Committee on the International Labor Organization and the Secretary of State’s Advisory Committee on Public-Private Partnerships. Robinson holds a master’s degree in international affairs from Columbia University.

The views expressed by contributors are their own and not the views of The Hill.

More Than 20,000 ATA Carnets for Temporary Exports Issued in United States in 2016

ATA-Carnet-LogoNew York, N.Y., January 10, 2017 – To date, the Dow Jones Industrial Average has only flirted with the elusive 20,000-point milestone. But another economic indicator – one that tends to forecast trends in U.S. exports – recently blew past the 20K mark and shows signs of continued growth. American companies and business executives used more than 20,000 ATA Carnets for the temporary export of various types of goods in 2016, according to the United States Council for International Business (USCIB), which administers and guarantees ATA Carnets in the United States.

The ATA Carnet, also known as the “merchandise passport,” is an international customs document honored by customs authorities in some 75 countries, which helps companies expedite temporary duty-free and tax-free import of goods for professional equipment, commercial samples and items for display at exhibitions and fairs. The worldwide ATA Carnet system is overseen by the World Customs Organization and the International Chamber of Commerce (ICC), for which USCIB serves as the American national committee.

“The 20,000 mark has been a longstanding goal for the ATA Carnet service,” said USCIB President and CEO Peter M. Robinson. “It was achieved following two very impressive growth years spearheaded by our Service Providers, Roanoke Trade and Boomerang Carnets. We believe that this milestone is a positive sign for continued growth in U.S. exports, since ATA Carnet usage by American firms often presages increased sales overseas.”

The ATA Carnet system has expanded in recent years, with Brazil joining last June as the country got set to host the Summer Olympics. Robinson said there are hopes that additional countries in Latin America will soon participate. Mexico and Chile have honored ATA Carnets for several years. USCIB plays an active role in the worldwide administration of the global system by virtue of its role as the U.S. affiliate of ICC. The United States is the third-largest user of ATA Carnets, following Germany and Switzerland.

Find out more about the services offered by USCIB to facilitate cross-border trade and investment at www.uscib.org.

Contact:
Jonathan Huneke, VP communications, USCIB
Tel: +1 212.703.5043, click here to e-mail

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. With a unique global network encompassing leading international business organizations, including ICC, USCIB provides business views to policy makers and regulatory authorities worldwide, and works to facilitate international trade and investment.

TTIP: Now More Than Ever, We Need a Common Vision for the Future

USCIB President and CEO Peter M. Robinson
USCIB President and CEO Peter M. Robinson

By Peter M. Robinson, President and CEO, United States Council for International Business (USCIB)

This column was originally published in Echanges Internationaux, the magazine of ICC France, the French national committee of the International Chamber of Commerce.

The past year has been a disappointing one for transatlantic trade policy. More than ever, we must stand up for trade and investment, two keys for economic growth and job creation. Peter M. Robinson, President and CEO of the United States Council for International Business (ICC USA), puts forward some ideas for a common transatlantic business agenda.

Efforts by the United States and the European Union to negotiate a comprehensive, high-standard Transatlantic Trade and Investment Partnership have progressed at a disappointingly slow pace. As we near the end of the Obama administration (and look ahead to a Trump administration that promises a decidedly different approach to trade policy), TTIP has gotten mired in squabbling over a range of challenging issues and is now effectively sidelined.

These are challenging times for global companies and for major business organizations, including the International Chamber of Commerce and its national committees – such as ICC France and USCIB.

Strong, credible voices from business are more important than ever. The U.S., France and Europe more broadly all need more economic growth, more prosperity, more and better jobs. And as we in the ICC family know, one of the best ways to drive that growth is through increased international trade and investment. With that said, I would put forward the following as a common transatlantic business agenda that we can all agree on.

Keep pushing on trade liberalization

The U.S. and EU must keep pressing ahead on the important and challenging issues in TTIP. We cannot let the change of administration in the U.S., internal divisions within the EU, or other distractions deter us or our political leaders from achieving a comprehensive, ambitious, and balanced Transatlantic economic framework. TTIP was, and remains, our preferred option but that pathway seems blocked at least for the time being. It won’t be easy, and it won’t get done as fast as we’d like. But whether TTIP or some other comparable U.S.-EU agreement, it is more important to get a great agreement than to get a quick or easy agreement.

At the same time as we work to cement transatlantic ties, the U.S. and EU also need to keep providing strong leadership for the multilateral trading system, principally through support for and leadership of the World Trade Organization, which desperately needs a strong shot in the arm. The U.S. and Europe must work together to push forward an ambitious multilateral trade agenda for as we approach the WTO ministerial in Argentina in late 2017.

Work together on development

One key element of any WTO agenda needs to be a strong development pillar, designing and implementing creative ways the WTO trade regime can more effectively promote economic growth in the least developed countries, especially in Africa.

Through our “Business for 2030” initiative, USCIB had spearheaded efforts within the ICC network to provide proactive, constructive business participation in the UN Sustainable Development Goals and the 2030 Agenda. We would love to work more closely with ICC France and other leading ICC national committees in Europe on this effort, as we did successfully on the Paris Agreement on Climate Change. Our website www.businessfor2030.org provides additional information on this important effort.

Join forces on global taxation

Business needs clear, predictable, and fair tax regimes in order to plan and execute its operations. Both European and American business need to be more active, and more closely coordinated, in our participation in the G-20 and OECD efforts to reform global taxation. ICC France and USCIB actively engaged in the OECD’s Base Erosion and Profit Shifting (BEPS). We cannot allow the BEPS effort to get hijacked by those with an anti-business agenda.

Keep global organizations “open for business”

Unfortunately, some international organizations in the UN family are becoming hostile to the private sector, seeking to exclude business representatives from key meetings and to impose an anti-business agenda. Leading U.S. and European business groups, and the global ICC network, need to confront that discrimination, while actively supporting and growing the mutually beneficial relationships that do exist after over 70 years of consultative status with various UN agencies.

I have laid out a long and challenging agenda. I very much look forward to working with François Georges and his dynamic team at ICC France in all of these important areas. We have a lot to do, and a lot more that we can do together. Let’s get to work.

BIAC Holds Business Day to Discuss OECD Role at G20 and B20

biac_business_daySenior business leaders from BIAC’s global membership and key OECD representatives met on December 8 at the OECD in Paris to discuss OECD’s Contributions to the G20 and the B20. The high-level panel addressed the G20 and the German Presidency and was framed by panels addressing policy topics in Employment and Education, Responsible Business Conduct/Anti-Bribery, Trade and Investment, Digital Economy, and Energy, Climate and Resource Efficiency. The day was rounded off by remarks from Frédéric Sanchez, president of France’s business association, MEDEF, and CEO of Fives.

 

USCIB was represented by Jonathan Huneke, USCIB’s vice president for communications and public affairs, and BIAC Vice Chair and USCIB Board Member Rick Johnston.

 

For more information on BIAC’s Business Day, please visit their website.

UN General Assembly Grants Observer Status to International Chamber of Commerce in Historic Decision

  • United Nations General Assembly adopts resolution granting Observer Status to world’s largest business association
  • New role for the International Chamber of Commerce first time business given official role in General Assembly in the 71-year history of the UN
  • Landmark move will enhance business engagement on global governance issues—including implementation of the UN’s 2030 Agenda for Sustainable Development

UN_General_Assembly_hallNew York, N.Y., December 13, 2016 – In an unprecedented move, the United Nations General Assembly has today granted Observer Status to the International Chamber of Commerce (ICC) – the world’s largest business organization representing more than six million members in over 100 countries, according to the United States Council for International Business (USCIB), ICC’s American national committee.

The decision – taken by 193 members of the UN General Assembly during its on-going 71st session in New York – is the first time that a business organization has been admitted as an Observer at the UN General Assembly. The list of UN observers is highly restricted and features principally intergovernmental organizations.

The new role for ICC means that business will for the first time have direct voice in the UN system. The decision paves the way for ICC to contribute directly to the work of the General Assembly and reflects the vital role the private sector will play in implementing the UN’s 2030 Agenda for Sustainable Development.

ICC Chairman Sunil Bharti Mittal said: “This is huge recognition of the role that business can play in contributing to a better and peaceful world. There is only one route to meeting the many challenges that face our society – from climate change to mass migration – and that is for governments and civil society to work hand-in-hand with the private sector.

“Granting Observer Status to ICC sends a powerful signal that the UN recognizes business as a vital partner. We stand ready to ensure that the private sector plays a full role in meeting the ambition of the 2030 agenda.”

The resolution to grant observer status to ICC was submitted by France – ICC’s host country – and was supported by 22 other Member States. ICC already works with a wide array of UN specialized agencies and organizations around the world providing business input and expertise on issues from commercial standards through to climate change. ICC was designated as the official business representative in the processes that lead to the creation of the UN’s 2030 Agenda for Sustainable Development – a key factor in the General Assembly’s decision.

ICC Secretary General John Danilovich said: “It’s a great honor for ICC to be granted Observer Status at the UN General Assembly. ICC has a long tradition of close cooperation with the United Nations and today’s decision reflects our sustained efforts to strengthen the relationship between the UN and the private sector.

“Given the complexity of today’s global challenges, it’s vital that business has a clear voice in UN decision making. We look forward to using this unique platform to deploy fully the resources, expertise and knowledge of world business in the work of the General Assembly.”

Danilovich also gave an interview on CNBC regarding ICC’s new status. Click here to watch.

USCIB President and CEO Peter M. Robinson added: “We have strongly supported this effort since its inception and are delighted at the elevation of ICC’s status within the United Nations. This reinforces the unparalleled network USCIB has built to convey U.S. business views to governments and international policy makers. It is part and parcel of our efforts to work more closely with the UN and other intergovernmental bodies in pursuit of shared goals.”

Following today’s UN General Assembly resolution, ICC will take up its position as observer to the General Assembly on January 1, 2017.

About ICC:
The International Chamber of Commerce (ICC) is the world’s largest business organization with a network of over 6.5 million members in more than 130 countries. We work to promote international trade, responsible business conduct and a global approach to regulation through a unique mix of advocacy and standard setting activities—together with market-leading dispute resolution services. Our members include many of the world’s largest companies, SMEs, business associations and local chambers of commerce. Learn more at www.iccwbo.org.

About USCIB:
The United States Council for International Business (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. With a unique global network encompassing leading international business organizations, including ICC, USCIB provides business views to policy makers and regulatory authorities worldwide, and works to facilitate international trade and investment. More at www.uscib.org.

Contacts:
Andrew Wilson, ICC
Tel:  +33 6 70 49 68 74
andrew.wilson@iccwbo.org

Jonathan Huneke, USCIB
Tel: +1 212 703 5043
jhuneke@uscib.org

Berlin Meetings Kick Off Germany’s G20 Host Year

Co-Chair Kathryn Porter, Hilton International; Co-Chair Mthunzie Mdwaba, IOE VP for Africa; Co-Chair Peter Robinson; Chair Gerhard Braun, Vice President of BDA
Co-Chair Kathryn Porter, Hilton International; Co-Chair Mthunzie Mdwaba, IOE VP for Africa; Co-Chair Peter Robinson; Chair Gerhard Braun, Vice President of BDA

On December 1, the first full meeting of B20 members during Germany’s G20 host year was held in Berlin. The B20 brings together private-sector representatives from each of the G20 nations and provides official input and advice to the G20. This year’s G20 Summit will be held July 7-8 in Hamburg. The B20 Summit will take place May 2-3 in Berlin.

USCIB President and CEO Peter M. Robinson took part in the December 1 event in his capacity as a Co-chair of the B20 Employment and Education Task Force, which met in parallel with all other B20 Task Forces, and for which the IOE serves as Network Partner. The International Chamber of Commerce (ICC), for which USCIB also serves as U.S. affiliate, serves as Network Partner for other B20 Task Forces including Trade and Investment.

Because of the compressed schedule for 2017 – the G20 Summit has generally been held in the fall – Germany is proceeding with an accelerated work plan, and has entered into close cooperation with the B20 in support of a manageable yet ambitious agenda.

The December 1 conference brought together all Task Forces and cross-thematic groups. It gave members of various B20 working groups the opportunity to continue their work on policy proposals, and featured addresses by leading G20 and B20 representatives. The conference was opened by German Minister of Finance Wolfgang Schäuble and B20 Chairman Jürgen Heraeus. Lars-Henrik Röller, Head of the Federal Chancellery’s Economic and Finance Division and G7/G20 Sherpa, also participated. His B20 counterpart, Stormy-Annika Mildner of BDI, played an important organizational role in the conference.

B20 Germany is co-hosted by the Federation of German Industries (BDI), the Confederation of German Employers’ Associations (BDA) and the Association of German Chambers of Commerce and Industry (DIHK)—all three USCIB partners in its global network for Business at OECD/BIAC, International Organization of Employers (IOE), and ATA Carnet, respectively.

The theme of the Conference was “Resilience, Responsibility, Responsiveness—Towards a Future-Oriented, Sustainable World Economy.” The B20 issued a statement calling for open markets and inclusive growth, entitled “Make Trade Work for Everybody. Initiated in response to troubling emotional rhetoric taking place around the world, the statement began with:

“The B20 is deeply concerned about current anti-globalization sentiments, which can be witnessed in many countries around the world. Increasingly, communities are voicing strong opposition to trade liberalization and international investment. We need to take these concerns seriously and support communities during times of change and disruption. At the same time, seemingly easy solutions risk having long-term negative consequences for business, workers, and consumers. We urge governments to resist the temptation to resort to protectionist measures such as trade barriers or investment restrictions”

Click here to read a B20 Statement for Open Markets and Inclusive Growth

G20 Scorecard

At the Berlin meetings, the International Chamber of Commerce (ICC) unveiled the latest edition of ICC G20 Business Scorecard, rating G20 responsiveness to key business policy priorities for growing the global economy, while revealing important missed opportunities G20 nations group to advance international trade and key international policy frameworks.

ICC Secretary General John Danilovich noted that ICC “is encouraged to see that G20 work is becoming increasingly responsive to priority recommendations put forward each year by business that aims to spur economic growth and job creation.”

The 2016 ICC Scorecard examined 25 business priorities developed during the Chinese B20 cycle and rates the G20’s responsiveness across seven policy areas. The overall score of 2.3 out of 3.0 across all seven policy categories marks the highest overall score since ICC began its monitoring. However, despite the positive overall trend, progress is shown to be uneven.

Click here to view the full results of the ICC Scorecard.

USCIB Contributes to Annual Internet Governance Forum

BarbaraWanner_IGF2016
Barbara Wanner, USCIB’s Vice President for ICT Policy moderating a workshop at this year’s Internet Governance Forum in Mexico

More than 3,000 stakeholders from business, government, civil society, the technical community and academia gathered December 6-9 in Guadalajara, Mexico for the 11th Internet Governance Forum (IGF). The four-day conference featured wide-ranging discussions under the overarching theme, “Enabling Inclusive and Sustainable Growth,” a theme deliberately chosen to enable IGF participants to highlight the importance of the Internet and ICTs in realizing the 17 Sustainable Development Goals (SDGs) set forth in the United Nations’ 2030 Agenda for Sustainable Development.

This was the first IGF meeting since the United Nations renewed the forum’s mandate for another 10 years as part of the 2015 WSIS +10 Review, last year’s UN conference to take stock of commitments made at the pivotal 2005 World Summit on the Information Society. USCIB members joined global business colleagues under the aegis of ICC-BASIS (Business Action to Support the Information Society) in urging that the IGF not remain static, but continue to evolve in the coming decade as viable multi-stakeholder entity.

Joseph Alhadeff (Oracle), chair of the ICC Digital Economy Commission and vice-chair of USCIB’s ICT (Information, Communications and Technology) Policy Committee, stated that this approach to involve “informed contributions from business, government, civil society, and the technical community will continue to be key to ensuring that policies and regulations do not create unintended consequences or unnecessary burdens that impair the potential of emerging technologies to propel sustainable and inclusive development.”

The week culminated with strong endorsements from all IGF participants for a comprehensive approach to tackling obstacles to inclusive growth. Barbara Wanner, USCIB’s vice president for ICT Policy, emphasized that “a comprehensive approach should feature a shared commitment to Internet openness, expanded public-private partnerships, more focused attention to both supply- and demand-related issues affecting Internet deployment, including digital literacy, and enlightened regulation and legal frameworks.”

Wanner said IGF participants acknowledged that much of this will continue to require multi-billion-dollar investments in both infrastructure and local content to reach all communities. “They also emphasized the urgent need to address security issues undermining user confidence and trust and in the Internet,” she said. “A refrain throughout the week’s discussions was that vibrant, multi-stakeholder dialogue will best enable the Internet community to navigate these many challenges.”

Workshops on the role of women, “demand-side” capacity

USCIB organized two IGF workshops that went to the heart of the inclusive growth theme. Wanner moderated “An ‘Internet of Women’ by 2020: WSIS Vision to Reality,” a discussion involving 10 representatives from all stakeholder groups who examined the factors causing a significant and persistent gender digital divide that has hampered the ability of women to become productive members of the digital economy. The WSIS Outcome Document calls for achieving gender equality in Internet users by 2020. USCIB Members Hibah Kamal-Grayson (Google), Carolyn Nguyen (Microsoft), and Jackie Ruff (Verizon) discussed what their companies are doing to bridge the gender digital divide by improving digital literacy and ICT-related professional opportunities for women. All agreed that the challenge of gender digital equality cannot be tackled effectively by any one company, organization, or stakeholder group. Rather, this requires collaboration among all stakeholder groups, partnerships between business and government, linkages between local communities and national governments, and coordination across various international organizations and a need for a mix of both bottom-up and top-down initiatives.

Another workshop, “Demand Side Capacity for Internet Deployment,” explored efforts in regions as diverse as Africa and Latin America to build “demand-side” capacity,” a term referring to the development of local content and services in a variety of languages and efforts aimed at improving digital literacy, among other measures. This workshop was moderated by Ellen Blackler (The Walt Disney Company.) The WSIS Outcome Document recognized that such demand-side initiatives serve as essential complements to government efforts to improve competition, expand infrastructure and connectivity, and other “supply-side” policies. However, numerous surveys of Internet use in developing countries have indicated that, even when people have Internet access they seldom use it because they believe Internet access would have limited value due to a lack of content relevant to their interests and needs. Workshop panelists looked broadly at stakeholder efforts to create locally relevant content and considered challenges they face, ranging from weak digital literacy, to phone affordability, to problems securing venture capital financing. In particular, they maintained that public-private partnerships help to ensure that the content is locally relevant.

Next year’s IGF will be held in Geneva, Switzerland, December 18-21, 2017.

WTO Members Fail to Wrap Up Green Goods Agreement

WTO headquarters in Geneva
WTO headquarters in Geneva

USCIB and other business groups expressed disappointment at the failure to conclude negotiations toward an international Environmental Goods Agreement (EGA) among more than a dozen leading members of the World Trade Organization. A concluded agreement promised to free up trade in a wide variety of environmentally friendly goods and technologies.

“This is a missed opportunity, both for the environment and for the international trading system,” stated USCIB President and CEO Peter Robinson. “To business, it is clear that achieving greener growth depends on the widespread deployment of innovative technologies and management systems through more open trade and investment. These can help to address climate risks, improve food, water and energy security, and offer cleaner goods to consumers in developing countries. A conclusion of the EGA negotiations would have been a big step in that direction.”

The Coalition for Green Trade, of which USCIB is a leading member, issued a press release stating, in part: “The failure to conclude this deal represents a significant missed opportunity for the global economy, delaying positive contributions to job growth, innovation and environmental goals until a later date.”

According to Eva Hampl, USCIB’s director of trade and investment policy, who was onsite in Geneva for the conclusion of the talks, negotiations fell apart over a disagreement over product lists. “While we end the year without an agreement in hand, we are hopeful that the parties will resume negotiations in the near future,” said Hampl.

China had a number of unique concerns with respect to the types of goods to be covered by the EGA as well as some agreed-upon text provision. In the end, China failed to come to the table with a constructive proposal, in the face of a workable solution as presented by the Chair of the negotiations.

USCIB has worked closely with a variety of international partners to push for ambitious approaches to environmental challenges that take account of the unique contributions of the business community and the multilateral trading system. At the recent COP22 climate talks in Marrakesh, USCIB joined over 40 other business groups in a joint declaration of private-sector action on climate.

US Unlikely to Sign New Global Tax Treaty

Businessman hand touching tax word on virtual screen the concept of online taxation.

USCIB’s vice president for taxation policy, Carol Doran Klein, was quoted extensively in a November 30 Bloomberg BNA article on the OECD’s multilateral tax treaty, known as the Multilateral Convention to Implement Tax Treaty-Related Measures to Prevent Base Erosion and Profit Shifting. According to Doran Klein, while many countries are likely to sign on to parts of the treaty, it is unlikely the U.S. will sign on mainly because the multilateral instrument (MLI) “does not have a lot to offer the U.S. Many of the provisions are variations on treaty policies that the U.S. has been implementing for decades.”

Regarding effect on business, Doran Klein said it will be a challenge for companies and their advisers to analyze the changes made by the MLI to individual bilateral treaties. “This is actually a huge issue, because it may be difficult to work through exactly what the new treaty language is.” Doran Klein said she is worried that the tax treaty area will wind up like the trade area. The trade agreements are very difficult to read and understand, because they refer back to other agreements for basic principles. “I believe that the reason they do that is they do not want to open up the fundamentals of the old agreements to complete renegotiation, but it is therefore extremely difficult to understand the obligations.”

To read the full story, visit Bloomberg BNA (subscription required).

Business Supports Expansion of APEC Privacy Rules

Global Communications. 3D rendering.

Eight major business groups — including USCIB, Japan’s Keidanren and ICC Mexico — released a joint statement calling on all Asia Pacific Economic Cooperation (APEC) economies to expand participation in the APEC Cross-Border Privacy Rules (CBPR) system. An important priority for USCIB, the CBPR is a high-standard and enforceable privacy code of conduct that facilitates cross-border trade and ensures strong privacy protection of personal information. The statement commended the work done by policy makers in promoting the CBPR system, and urged the 21 APEC economies to commit to the system during 2017.

CBPRs are based on the internationally respected APEC Privacy Framework and endorsed by APEC Leaders since 2011. They are an interoperable, enforceable, and high-standard privacy code of conduct that facilitates cross-border trade of goods and services and ensures that strong privacy protection will follow personal information across the Asia-Pacific region. By creating a certification system that bridges the privacy regimes of each participating economy in a cost-effective and scalable way, the CBPRs allow participating companies to focus their time and resources on innovating, serving customers, and pursuing their business objectives.

USCIB President and CEO Peter Robinson attended the annual APEC CEO summit and various side events alongside USCIB Vice President Helen Medina. Robinson featured the joint statement in his meetings with US government officials, as well as other APEC government representatives on the sidelines of the recent APEC Leaders meeting in Lima, Peru. “We applaud the support that APEC Leaders and Ministers have demonstrated towards expanding participation in the CBPRs. We believe this reaffirms both APEC’s recognition of the importance of data flows to trade and investment in the region and its commitment to building bridges between national privacy regulatory regimes. We see great potential for the CBPRs to serve as a platform for a truly global system of interoperable and robust privacy protection,” noted Robinson. USCIB members certified under the CBPR include Apple Inc., Cisco Systems, Hewlett-Packard Enterprise, HP Inc., IBM, and Merck and Co., Inc.

The CBPRs signal to governments in the Asia-Pacific and in other parts of the world that mutual cooperation between like-minded economies can serve as a rational, effective international approach to high-standard privacy and data protection, without requiring data to be stored, managed, or otherwise processed locally or prohibiting data transfers to other markets.

The next meeting of APEC’s Data Privacy Subgroup, which developed the CBPR framework and continues to oversee its implementation, will be held in 2017 in Vietnam. USCIB will work with APEC member economies to support these commitments and raise awareness with officials and stakeholders on the benefits of CBPRs, increasing participation and helping APEC economies set the standard for how to do privacy right globally.