Growth, Jobs and Open Markets Archives

BIAC and B20 Turkey Call for Strengthening the Financing of SMEs in Global Value Chains

Published on June 18, 2015

SMEs“For SMEs to benefit more fully from global value chains, urgent actions are needed to improve the coordination of financial regulations, strengthen access to financing and skills, and maximize the sharing of information through digital platforms,” said Bernhard Welschke, BIAC secretary general, commenting today on the release of a BIAC-B20 Turkey special publication.

Faced with the slowest post-crisis global investment recovery since the early 1970s, there is a pressing need to unlock growth, investment and jobs. However, small- and medium-sized enterprises (SMEs) – which account for the majority of employment and over half of value-added in OECD countries – have struggled to access the financing they require to participate in and across world markets as banks have deleveraged to meet new regulatory requirements.

Conscious of the financing challenge, BIAC and B20 Turkey have released a publication halfway through the Turkish G20 Presidency entitled “Business Access to Global Value Chains and Financing SMEs.” Bringing together chapters written by prominent thinkers in government, academia, finance, and business, the publication seeks to pave the way for actions to support SMEs, in contribution to the G20 ahead of the Leaders’ Summit in November 2015.

“This BIAC-B20 Turkey publication underlines that SMEs can be best supported if all relevant actors in markets – public and private alike – undertake coordinated actions that support businesses in global value chains,” commented Rifat Hisarcıklıoğlu, B20 Turkey Chair. “Connecting the various B20 and G20 activities is central to this effort.”

Considering the outcomes from a BIAC-B20 Turkey conference held on June 4, 2015 at the OECD Headquarters in Paris, the final chapter of the publication presents three overarching recommendations to G20 Leaders:

  1. Focus on coordination, consultation and impact assessment
  2. Raise SME access to finance and skills through an integrated approach
  3. Maximize the sharing of information through digital platforms

“We encourage G20 Sherpas to use this publication as a key point of reference in preparing the G20 Leaders’ Summit Communiqué,” added Hisarcıklıoğlu.

Read the report.

USCIB Applauds House Adoption of Trade Promotion Authority

Published on June 18, 2015

New York, N.Y., June 18, 2015 – The United States Council for International Business (USCIB) welcomed the House of Representatives’ passage of Trade Promotion Authority (TPA) legislation today, and urged the Senate to move quickly to ensure final passage, which is necessary for U.S. trade negotiators to complete crucial talks with Pacific-rim nations.

“We commend TPA supporters for sticking by this important legislation despite aggressive attacks from trade opponents,” said USCIB President and CEO Peter Robinson. “House passage takes us a step closer to getting back in the game of writing 21st-century trade rules that benefit our workers, farmers, businesses and consumers.”

Robinson continued: “As we have already seen, slowing down TPA only damages our position in the Trans-Pacific Partnership negotiations. We urge the Senate to act swiftly to get the final bill to the President’s desk.”

USCIB is a founding member of the Trade Benefits America Coalition, an organization of American business organizations dedicated to building support for the U.S. trade agenda.

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, USCIB provides business views to policy makers and regulatory authorities worldwide, and works to facilitate international trade and investment. More at www.uscib.org.

Contact:
Jonathan Huneke, USCIB
+1 212.703.5043, jhuneke@uscib.org

More on USCIB’s Trade and Investment Committee

Letter in New York Times on Trade and Climate

Published on June 16, 2015
USCIB President and CEO Peter Robinson at a press conference in Lima, Peru on December 8. “If a global agreement on climate change doesn’t work for and with businesses, it just won’t work,” he said.
USCIB President and CEO Peter Robinson at a press conference in Lima, Peru on December 8. “If a global agreement on climate change doesn’t work for and with businesses, it just won’t work,” he said.

USCIB President and CEO Peter Robinson has a letter in today’s issue of The New York Times on climate change and trade policy. The letter is reproduced below, and you can view it on The Times’ website by clicking here.

Robinson rebuts a recent piece by Times columnist Eduardo Porter that suggested border taxes on products from countries outside a so-called “climate club,” saying that countries should instead offer trade incentives, rather than punitive tariffs, to reduce carbon emissions and spur the deployment and use of greener energy technologies.

This letter is especially timely, as it comes after the most recent negotiating session of the UN climate change talks in Bonn, where USCIB played an important role in voicing private-sector views. Click here to read our report. It also comes as we gear up for next week’s climate-focused meeting of USCIB’s Environment Committee and the North American Business Climate Consultation, held in conjunction with the International Chamber of Commerce and the Canadian Chamber of Commerce.

Finally, USCIB continues to advance American business interests in the WTO’s Environmental Goods Agreement talks as well as other key trade negotiations, even as we grapple with the current trade deadlock on Capitol Hill.

—

The New York Times

June 15, 2015

The Opinion Pages/Letters

Climate Change and Trade Policy

To the Editor:

Eduardo Porter advocates launching a trade war as a way of ”solving” the climate challenge (”Climate Deal Badly Needs a Big Stick,” Economic Scene column, June 3), imposing tariffs on those countries that don’t join a ”climate club” committed to reducing carbon emissions.

But we should offer carrots instead of sticks to accelerate the transition to greener energy. Rather than threatening higher-emitting countries with punitive tariffs, we should roll back barriers to trade in environmental goods and services.

There is no contradiction between economic development and climate protection. Indeed, as countries grow richer, they can devote additional resources to cleaner energy.

To be viable, climate solutions must factor in real-world needs, including the need for economic growth, and deliver benefits today to people in both rich and poor countries.

And they need to be in line with political and market realities, including the global community’s common interest in keeping markets open and economic relations cordial.

The ”big stick” that Mr. Porter endorses fails to meet these criteria.

PETER M. ROBINSON
President and Chief Executive
United States Council for International Business
New York

OECD Ministerial: Unlocking Investment for Sustainable Growth and Jobs

Published on June 3, 2015

oecd_forumBusiness welcomes the focus of this year’s OECD Ministerial meeting, which takes place under the overarching theme of Unlocking investment for Sustainable Growth and Jobs. Industry calls upon the OECD to speak up and convince countries of the need to remove the most persistent barriers to markets and put in place pro-investment policies.

Rob Mulligan, USCIB’s senior vice president for policy and government affairs, is in Paris representing USCIB members at and around the Ministerial and at the OECD’s annual Forum earlier in the week. USCIB represents U.S. business at the Business and Industry Advisory Committee (BIAC) to the OECD, which released a policy statement and recommendations ahead of the Ministerial on investment issues.

“A predictable policy framework and an effective cross-government approach are fundamental for investment,” said USCIB Trade and Investment Committee Chairman Rick Johnston at a ministerial panel discussion on Investment, Innovation and Business Climate. “This is recognized by the newly updated OECD Policy Framework for Investment. Fostering both domestic and foreign investment should be governments’ primary objective”.

The OECD Policy Framework for Investment (PFI) provides an important checklist across a range of different policy areas to assist governments in creating an enabling investment environment. BIAC has been an active partner in the update of the PFI and calls for sustained efforts to ensure its implementation, notably as part of the post-2015 development agenda. BIAC strongly believes that policies that foster innovation and investment opportunities will also be key for the transition to a low-carbon economy.

BIAC also called for strengthening global value chains and financing small- and medium-sized enterprises (SMEs). “Actions are urgently needed to step-up SME financing and enable companies to participate in global value chains”, said Phil O’Reilly, BIAC’s chairman, speaking on June 4 at a BIAC-B20 Turkey special event.

BIAC’s five recommendations on Unlocking Investment for Sustainable Growth and Jobs are laid down in a 2015 Statement to the OECD MCM.

USCIB Extols Importance of Investor-State Rules

Published on May 28, 2015
Shaun Donnelly (center) at the Barcelona Centre for International Affairs
Shaun Donnelly (center) at the Barcelona Centre for International Affairs

USCIB’s Shaun Donnelly, vice president for investment and financial services, took the U.S. trade agenda to Spain last week, advocating for the benefits of the Transatlantic Trade and Investment Partnership (TTIP) and debunking myths about Investor-State Dispute Settlement (ISDS).

Donnelly spoke with business and university groups about the U.S.-EU trade deal and especially about ISDS, which remains controversial in Europe, at the invitation of the U.S. Embassy in Madrid and the Consulate General in Barcelona. He gave the keynote at an all-day conference on May 27 on “TTIP Negotiations: Caught Between Myth and Reality” hosted by leading Spanish think tank CIDOB (Barcelona Centre for International Affairs).

On May 28, Donnelly traveled to Madrid where he spoke at the U.S.-Spain Council‎, the IE Business School, the Foundation for Research in Law and Business, and at a young entrepreneurs association. He also did a radio interview for the U.S. Embassy’s website.

Donnelly, a retired State Department economic officer, former ambassador, and former USTR trade negotiator, has done five TTIP and ISDS public-speaking tours around Europe for the State Department and U.S. embassies over the last 18 months.

Also last week, the European Union Parliament’s trade committee backed a resolution in support of TTIP, including a provision on ISDS.

USCIB Hails Senate Passage of Trade Promotion Authority

Published on May 22, 2015

The United States Council for International Business (USCIB) cheered approval of Trade Promotion Authority (TPA) by the Senate today, as the bill moved one step closer to becoming law.

“We applaud the Senate’s passage of this legislation, which will help us realize historic, market-opening trade deals with Asia and Europe,” said USCIB President and CEO Peter Robinson. “We have the opportunity to remove stifling barriers to our exports while bringing significant benefits to American workers and consumers.”

Every U.S. president since FDR has been afforded trade promotion authority of some form. But TPA lapsed in 2007 and has not been renewed since then. Robinson cited important recent progress on several trade pacts, including the Trans-Pacific Partnership, as adding urgency to the need to re-establish TPA.

Robinson said the Senate’s vote illustrates that there is space to build bipartisan Congressional support in favor of action on trade. There is also growing support among the American public. A recent poll by the Pew Research Center found that 59 percent of Americans believe that free trade agreements are good for our country.

“We urge the House of Representatives to move expeditiously on its own TPA bill,” Robinson stated. “The business community is united behind this crucial legislation, and we intend to keep the momentum going so that TPA becomes law.”

USCIB is a founding member of the Trade Benefits America Coalition, an organization of American business organizations dedicated to building support for the U.S. trade agenda.

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, USCIB provides business views to policy makers and regulatory authorities worldwide, and works to facilitate international trade and investment. More at www.uscib.org.

Contact:
Jonathan Huneke, USCIB
+1 212.703.5043, jhuneke@uscib.org

USCIB Commends Senate for Proceeding on Trade Promotion Authority

Published on May 15, 2015

capitol_dome_scaffoldingThe United States Council for International Business (USCIB) is pleased the Senate voted to proceed on Trade Promotion Authority today, following a day of negotiations after the trade package failed to make it through the Senate on Tuesday.

“We commend the Senate for starting debate on TPA and urge lawmakers to pass the bill as soon as possible,” said USCIB President and CEO Peter Robinson. “There is growing public appreciation of the benefits of trade to our economy and our workforce. We need TPA in order to seize the tremendous opportunities for growth in our current trade talks.”

A strong advocate for international trade and investment, USCIB is a founding member of the Trade Benefits America Coalition, an organization of American business organizations dedicated to building support for the U.S. trade agenda.

USCIB and its international partners also organized two high-level policy conferences about the benefits of increased trade and investment: “Exploring New Approaches to Trade, Investment and Jobs” last October with a keynote by USTR Michael Froman, and the Customs & Trade Facilitation Symposium in February with Customs and Border Protection Commissioner Gil Kerlikowske. In addition, Robinson co-authored an Op-Ed in The Hill with former Rep. James Bacchus in March about the pressing need to pass TPA.

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, USCIB provides business views to policy makers and regulatory authorities worldwide, and works to facilitate international trade and investment. More at www.uscib.org.

Contact:
Jonathan Huneke, USCIB
+1 212.703.5043, jhuneke@uscib.org 

Christopher Zoia, USCIB
+1 212.703.5063, czoia@uscib.org

 

USCIB Comments on U.S.-China Investment Relationship

Published on May 6, 2015

Blue sky and white clouds, ancient Chinese architectureUSCIB submitted recommendations on behalf of the American business community to the U.S.-China Joint Commission on Commerce and Trade (JCCT), the primary forum for addressing bilateral trade and investment issues and promoting commercial opportunities between the United States and China.

USCIB supports efforts to improve the business environment for both U.S. and Chinese companies. In a statement submitted on April 30, USCIB urged both governments to move ahead on a high-standard U.S.-China Bilateral Investment Treaty and made the case for using the full range of multilateral forums available to work toward improved commercial relations.

The recommendations highlighted specific member concerns that can be efficiently addressed through high-level dialogue afforded by the JCCT process. These concerns included:

  • Anti-monopoly law (AML)
  • Audiovisual
  • Certification, Licensing and Testing Barriers
  • Express Delivery Services (EDS)
  • Government Procurement
  • Intellectual Property Rights
  • Regulatory Environment
  • Standards
  • State-Owned Enterprises
  • Technology Policy

“USCIB appreciates the commitment to ongoing dialogue the United States and China have made in the JCCT process over the years and encourage continued commitments to focus efforts on improving the business environment for both U.S. and Chinese companies,” the report noted.

Read USCIB’s recommendations.

2015 OECD International Tax Conference: Background Documents

Published on May 1, 2015

BACKGROUND DOCUMENTS

BEPS Action Plan – Overview

OECD: Addressing BEPS

OECD: Action Plan on BEPS

BIAC Statement of Tax Principles for International Business

BIAC Statement of Tax Best Practices for Engaging with Tax Authorities in Developing Countries

BEPS Discussion Drafts

Current

Past

BEPS 2014 Deliverables

2014 Deliverables

G20 Report on the Impact of BEPS in Low Income Countries

Part 1

Part 2

BEPS Implementation Package February 2015

Action 15

Action 13

Action 5

BIAC and USCIB Comments on BEPS

BIAC

June 2015**
BIAC Comments on the OECD Discussion Draft on BEPS Actions 8: Revisions to Chapter VIII of the Transfer Pricing Guidelines on Cost Contribution Arrangements (CCAs)

May 2015:
BIAC Comments on the OECD Discussion Draft on BEPS Action 3: Strengthening CFC Rules

BIAC Comments on the OECD Discussion Draft on Action 11/ Improving the Analysis of BEPS

BIAC Comments on the OECD Discussion Draft on BEPS Actions 8-10: Revisions to Chapter I of the Transfer Pricing Guidelines (including Risk, Recharacterisation and Special Measures)

April 2015
on the OECD Discussion Draft on BEPS Action 12: Mandatory Disclosure Rules

February 2015
BIAC Comments on the OECD Discussion Draft on BEPS Action 10: The Use of Profit Splits in the Context of the Global Value Chains

BIAC Comments on the OECD Discussion Draft on BEPS Action 10: Transfer Pricing Aspects of Commodities Transactions

BIAC Comments on the OECD Discussion Draft on BEPS Action 4: Interest Deductions and Other Financial Payments

January 2015
BIAC Comments on the OECD Discussion Draft on Action 14: Make Dispute Resolution Mechanisms more Effective

BIAC Comments on the OECD Discussion Draft on BEPS Action 10: Proposed Modifications to Chapter VII to the Transfer Pricing Guidelines Relating to Low Value-Adding Intra-Group Services

BIAC Comments on the OECD Discussion Draft on BEPS Action 7: Preventing the Artificial Avoidance of Permanent Establishment Status

BIAC Comments on the OECD Discussion Draft on BEPS Action 6: Preventing Treaty Abuse

September 2014
OECD’s Request for Input on BEPS Action 11: Establish methodologies to collect and analyze data on BEPS and the actions to address it

April 2014
BIAC Comments on the OECD Discussion Draft on BEPS Action 1: Tax Challenges of the Digital Economy

BIAC Comments on the OECD Discussion Draft on Transfer Pricing Comparability and Developing Countries

BIAC Comments on the OECD Discussion Draft on BEPS Action 6: Preventing the Granting of Treaty Benefits in Inappropriate Circumstances

February 2014
BIAC Comments in response to the OECD Discussion Draft addressing Transfer Pricing Documentation and Country by Country Reporting submitted to OECD (Appendix)

October 2013
BIAC letter to Mike Williams and Pascal Saint-Amans on BEPS

April 2013
BIAC Comments on the February 2013 OECD Report on BEPS

 

USCIB

May 2015**
USCIB Comment Letter on the OECD Discussion Draft on BEPS Actions 8: Revisions to Chapter VIII of the Transfer Pricing Guidelines on Cost Contribution Arrangements (CCAs)

April 2015
USCIB Comment Letter on the OECD Discussion Draft on BEPS Action 3: Strengthening CFC Rules

USCIB Comment Letter on the OECD Discussion Draft on BEPS Action 12: Mandatory Disclosure Rules

February 2015
USCIB Comment Letter on the OECD Discussion Draft on BEPS Action 4: Interest Deductions and Other Financial Payments

USCIB Comment Letter on the OECD Discussion Draft on BEPS Actions 8, 9, and 10: Discussion Draft on Revisions to Chapter 1 of the Transfer Pricing Guidelines (Including Risk, Recharacterisation and Special Measures)

USCIB Comment Letter on the OECD Discussion Draft on BEPS Action 10: Discussion Draft on the use of Profit Splits in the Context of Global Value Chains

January 2015
USCIB Comment Letter on the OECD Discussion Draft on BEPS Action 14: Make Dispute Resolution Mechanisms More Effective

USCIB Comment Letter on the OECD Discussion Draft on Follow Up Work on BEPS Action 6: Preventing Treaty Abuse

USCIB Comment Letter on the OECD Discussion Draft on BEPS Action 7: Prevent the Artificial Avoidance of PE Status

December 2014
USCIB Comment Letter on the OECD Discussion Draft on BEPS Action 10: Proposed Modifications to Chapter VII of the Transfer Pricing Guidelines Relating to Low Value-Adding Intra-Group Services

September 2014
USCIB Comment Letter OECD’s Request for Input on BEPS Action 11: Establish methodologies to collect and analyze data on BEPS and the actions to address it

May 2014
USCIB Comment Letter on the OECD Discussion Draft on BEPS Action 2: Neutralise the effects of Hybrid Mismatch Arrangements (Recommendations for Domestic Laws)

April 2014
USCIB Comment Letter on the OECD Discussion Draft on BEPS Action 2: Neutralise the Effects of Hybrid Mismatch Arrangements (Treaty Issues)

USCIB Response to the OECD’s Discussion Draft on the Tax Challenges of the Digital Economy (the Discussion Draft)

USCIB Comment Letter on the OECD Discussion Draft on Transfer Pricing Comparability Data and Developing Countries

USCIB Comment Letter on the OECD Discussion Draft on BEPS Action 6: Preventing the Granting of Treaty Benefits in Inappropriate Circumstances

February 2014
USCIB Comments on the OECD Discussion Draft on Transfer Pricing Documentation and Country-by Country Reporting

Panelist Materials

“Cross-Border Tax Problems of Investment Funds” by Kim Blanchard

 

**Not included on USB

www.uscibtax.org

USCIB Promotes Investor Protections at ICC YAF Symposium

Published on April 30, 2015

On April 6, Eva Hampl, USCIB’s director for investment, trade and financial services, spoke on a panel on The Impact of Investor-State Dispute Settlement (ISDS) in the Transatlantic Trade and Investment Partnership (TTIP) at an International Investment Symposium hosted by the International Chamber of Commerce Young Arbitrators Forum (YAF), Georgetown International Arbitration Society and The Institute of International Economic Law.

Discussing the issue with panelists ranging from practitioners to scholars and academics, Hampl emphasized the importance of investment, particularly with Europe, America’s largest trading, and the significance of investment protections and ISDS as an integral part of economic growth and development.