Customs Agencies and Business Community Join Forces on Trade Facilitation

Published on October 23, 2014

In the spirit of the strategic partnership between the International Chamber of Commerce (ICC) and the World Customs Organization (WCO), WCO Secretary General Kunio Mikuriya welcomed the ICC Commission on Customs and Trade Facilitation to WCO headquarters in Brussels for its fall 2014 meeting.

The meeting took place on October 16 and 17, and it gathered 50 participants from 20 countries to discuss ICC’s work on trade facilitation. Participants included large multinational companies such as Fedex, Diageo and Samsung, as well as chambers of commerce and business associations representing a large number of small- and medium-sized enterprises (SMEs).

Opening the meeting, Norman Schenk, vice president of global customs policy and public affairs at UPS and chair of the ICC Commission on Customs and Trade Facilitation, emphasized the importance of Customs-Business partnerships. Illustrating the transparent and constructive continuous dialogue between ICC and the WCO, several representatives and experts of the WCO secretariat, including WCO Deputy Director Compliance and Facilitation Heike Barczyk, participated in the commission’s deliberations on reducing barriers to cross-border trade.

Guest speaker Mikuriya recognized ICC as the longest standing partner of the WCO in the context of customs-business cooperation. He encouraged ICC to share its insight in emerging new business models and to provide advice on how border procedures should be improved to support a true business environment.

“Borders divide but customs connect,” he said. Pointing out the increasing significance of global value chains and e-commerce, ICC commission members emphasized the importance of taking into account the experiences of SMEs’ while addressing bottlenecks hampering cross-border trade. Improved border and customs measures could trigger a 60 to 80 percent increase in cross-border SME sales in some economies, according to research. Bringing SMEs into trusted trader programs and allowing them to have a voice will be key to moving forward

Addressing the impasse on ratification of the World Trade Organization (WTO) Trade Facilitation Agreement (TFA), Mikurya said: “Regardless of what happens with the TFA, in the short term we will push for trade facilitation.”

It is noted that while the TFA is a WTO agreement, 85 percent of the articles will have to be implemented by border agencies and the WCO Mercator Program offers a practical framework to ensure consistent implementation. While WTO negotiators are trying to address the political bottlenecks in Geneva, Customs agencies and the business community remain natural allies in enhancing trade facilitation.

“We want to stress the importance of moving forward on trade facilitation regardless of what happens at the World Trade Organization with the TFA,” said Kristin Isabelli, USCIB’s director for customs and trade facilitation. “The WCO will be moving the ball forward on trade facilitation, and we’ll be ready to support them any way we can.”

ICC launched an intense advocacy campaign to mobilize its global business network to push for ratification of the TFA signed in Bali in December 2013. Highlighting the diversity of the members of the commission – both geographically and in ideas and views – the commission chair reconfirmed ICC’s support to work together with customs around the globe to drive economic growth. “ICC can help connect the dots in bringing the different groups together: customs, trade and other government agencies,” said Schenk.

Staff contact: Kristin Isabelli

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Conference to Shed New Light on 21st Century Trade Policy Challenges

Published on October 16, 2014

U.S. Trade Representative Michael Froman will deliver keynote remarks at the October 30 conference, “Exploring New Approaches to Trade, Investment and Jobs: Insight and Impact for Business from the OECD.” — U.S. Trade Representative Michael Froman at the Oct. 30 conference: “Exploring New Approaches to Trade, Investment and Jobs: Insight and Impact for Business from the OECD.”

Washington, D.C., October 16, 2014 – How are cross-border trade and investment changing in an era of ever-more sophisticated global value chains? What new policies and agreements are needed to ensure that trade and investment can generate high-quality jobs and other benefits to society? And how can new research from the Organization for Economic Cooperation and Development (OECD) shed light on these changes and provide insight for policy makers?

These will be among the central questions addressed at a timely, high-level conference, “Exploring New Approaches to Trade, Investment and Jobs: Insight and Impact for Business from the OECD,” to be held October 30 at the St. Regis Hotel in Washington, D.C. Organized by the USCIB Foundation (the educational arm of the United States Council for International Business), the OECD and BIAC, the Business and Industry Advisory Committee to the OECD, the conference will highlight the OECD’s innovative work in the areas of trade and investment, and address how this work impacts policy, job creation and trade negotiations around the world.

“It’s clear that a 21st-century trade policy must address a host of new concerns beyond ‘old-school’ issues like tariffs and quotas,” said USCIB President and CEO Peter Robinson. “While those types of trade barriers still exist, their importance is fast being eclipsed by the growth of global value chains, barriers to trade in services, new investment agreements, trade facilitation, and the relationship between regional and multilateral trade negotiations.”

The event will bring together experts from the OECD, U.S. and foreign governments, and business to assess the issues and discuss solutions. Participants will draw upon the innovative research and policy discussions coming from the OECD – including its Services Trade Restrictiveness Index, OECD-WTO efforts to measure trade in value-added, and studies on the importance of global value chains.

Keynote remarks at the conference will be delivered by U.S. Trade Representative Michael Froman. Other speakers include:

Cathy Novelli, under secretary for economic growth, energy and the environment, U.S. Department of State
Mari Kiviniemi, deputy secretary general, OECD, former prime minister of Finland
Yonov Frederick Agah, deputy director general, World Trade Organization
Ambassador Susan Schwab, strategic advisor, Mayer Brown, former U.S. trade representative
Harold McGraw III, chairman of McGraw Hill Financial [now S&P Global], chairman of the International Chamber of Commerce (ICC), chairman of USCIB
Ken Ash, director, Trade and Agriculture Directorate, OECD
The Honorable James Bacchus, chair of Greenberg Traurig’s global practice, former chairman of the WTO Appellate Body, and chairman of the ICC Commission on Trade and Investment Policy
Phil O’Reilly, CEO of Business New Zealand, chairman of BIAC.

More information about the conference is available here.

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 BIAC, 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

World Investment Forum Looks at Leveraging FDI to Support Sustainable Development

Published on October 16, 2014

L-R Peter Robinson (USCIB) and Mukhisa Kituyi (UNCTAD)

USCIB and the International Chamber of Commerce brought a pro-business, pro-investment perspective to the three-day World Investment Forum, which took place this week in Geneva.

Organized by the UN Conference on Trade and Development (UNCTAD), the biennial forum gathers heads of state, global CEOs and civil society leaders for dialogues on the world’s emerging investment-related challenges. This year’s event had a special focus on leveraging investment to support the UN’s Sustainable Development Goals (SDGs).

On Tuesday, the forum’s first day, ICC leaders and Mukhisa Kituyi, the UNCTAD secretary general, co-chaired the 11^th meeting of the Investment Advisory Council. During the open discussion, Shaun Donnelly, USCIB’s vice president for investment and financial services, made a strong pitch for bilateral investment treaties and free trade agreements, which was echoed by a range of business and government representatives. ICC and USCIB Chairman Terry McGraw and ICC Secretary General John Danilovich spoke at the forum’s opening plenary, where they were joined by senior government officials.

Also on Tuesday, McGraw, Danilovich and USCIB President and CEO Peter Robinson met with Roberto Azevedo, the director general of the World Trade Organization, to discuss ways to restart the stalled Trade Facilitation Agreement. At the meeting Robinson thanked Azevedo for his leadership and said he looked forward to honoring him at USCIB’s annual award dinner in Washington, DC on November 19.

Mobilizing the Private Sector

On the forum’s second day, Robinson delivered plenary remarks, in which he discussed the four key elements that would crystallize private-sector support for sustainable development: good governance, economic growth, innovation and infrastructure. He noted that governments and businesses must work together to facilitate initial investments in least developing countries that lack basic infrastructure. Initial infrastructure funding can then help leverage further investments, leading to a “virtuous cycle.” He also made the case for investment protection.

“Let’s continue the dialogue and partnership to harness investment as a key driver of economic, sustainable and inclusive development,” Robinson concluded. “And work together to create the virtuous investment circle, particularly in those countries that need it the most.”

Given the forum’s focus on investment for the SDGs, Robinson also emphasized that “taken together, open international trade and investment are important inter-related fundamentals and key drivers for engaging the private sector in achieving global economic growth that is inclusive, and environmentally and socially sustainable.”

On Thursday Robinson and Donnelly took part in key panel discussions on the role of bilateral and multilateral investment agreements and on investor-state dispute settlement (ISDS), where they spent over four hours defending investment agreements and ISDS in a morning-long Investment Agreement session, the centerpiece session during the final day of UNCTAD’s World Investment Forum.

With over 50 speakers limited to three-minute interventions, government and NGO representatives were often critical of investment agreements and ISDS in particular, whereas business voices were scarce. Robinson explained the overall importance of international investment agreements, while Shaun tackled the sensitive ISDS issue, emphasizing the need for effective enforcement measures to truly incentivize and protect FDI flows that are vital for economic growth, development and job creation. Donnely also highlighted USCIB’s strong opposition to any sectoral carve-outs from ISDS protections.

Although too many government participants opposed ISDS, Michael Tracton, director of the investment office at the U.S. Department of State, voiced support for strong investment agreements and ISDS, citing the high standards and balance of the USG’s Bilateral Investment Treaty and free trade agreement investment chapters.

Unfortunately, opposition to ISDS from NGOs has shown no signs of letting up. “USCIB will continue to confront these pressures internationally at forums like UNCTAD and in free trade agreement negotiations, voicing our strong support for common-sense, pro-business investment policies,” Donnelly said. “We will continue to leverage our international networks BIAC and ICC to mobilize international business support for these policies.”

Staff contact: Shaun Donnelly and Eva Hampl

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USCIB Meets with G20 and B20 Sherpas to Discuss Business Priorities

Published on October 13, 2014

Ahead of next month’s Group of 20 (G20) Summit in Brisbane, USCIB met with representatives of the Business 20 (B20) and G20 on October 9 in Washington, DC to discuss the 2014 B20 recommendations and give USCIB members an opportunity to voice their priorities for achieving economic growth and job creation.

The B20 provides global business leaders with a forum for producing policy recommendations to be delivered at the annual G20 meeting, reflecting the key role the private sector plays as a driver of strong, sustainable growth.

Members of the USCIB Trade and Investment Committee and Customs and Trade Facilitation Committee met with Caroline Atkinson, the G20 Sherpa for the U.S. government, Sarp Kalkan, policy advisor at the Union of Chambers and Commodities Exchanges of Turkey and upcoming Turkey B20 Sherpa, and Robert Milliner, the Australia B20 Sherpa. Members broadly supported the B20 recommendations to the G20, which include focused proposals in the areas of trade, infrastructure, human capital, finance and transparency.

Milliner summarized the B20 recommendations and noted that they would play a big role in the G20 agenda coming out of the Brisbane Summit. Trade and infrastructure rank high on the B20’s priorities, and Milliner hoped that governments will agree to establish a proposed “infrastructure hub” that will share information among nations and increase transparency on infrastructure projects.

Atkinson appreciated how focused the B20 recommendations are and explained it is helpful for government leaders to see which reforms business feels would be useful to support growth and jobs. She suggested that U.S. business leaders communicate often with their counterparts in other countries to coordinate their priorities, and she noted that business must engage more often with labor. USCIB plays a part on both counts, through our affiliation with the International Chamber of Commerce (ICC) – the world business organization – and theInternational Organization of Employers.

Kalkan noted that during next year’s G20 Summit in Turkey, global infrastructure initiatives will remain at the core of the B20 agenda, as well as trade and investment policies that make it easier for emerging economies to attract foreign direct investment. On that note, the successful passage of the World Trade Organization’s trade facilitation agreement ranks high on the list of business priorities. The B20 also plans to do more work on small- and medium-sized businesses, helping to integrate them into global value chains and increasing their access to finance. Kalkan also noted that will be greater efforts to have the B20 and G20 interact more frequently over the course of the year.

At a similar event on October 8 in Washington, DC, ICC and the Center for Strategic and International Studies brought together Australian and U.S. government officials to discuss expectations for the Australian G20 summit in December.

“We intend to concentrate on advocating for the implementation of the existing stock of B20 recommendations,” Kalkan at the CSIS meeting. “We will do this through extensive consultations with G20 ministers, sherpas and business leaders.”

Staff contact: Robert Mulligan

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USCIB Participates in Greater China Business Forum

Published on October 13, 2014

Last week, USCIB partnered with the U.S. Commercial Service for the Discover Global Markets: Greater China Business Forum, a two-day conference in New York City that gave entrepreneurs opportunities to gain insights and contacts for exporting to the Greater China region, which includes Singapore, Hong Kong, Mongolia and Taiwan, Province of China.

Elizabeth Cafaro, USCIB’s marketing assistant for Carnet and Trade Services, spoke at the conference on a panel about “Utilizing Trade Shows in China.”

At the event, U.S. Under Secretary of Commerce for International Trade Stefan M. Selig said that U.S.-China trade is right on track, and that China is an elite market for U.S. exports, according to CNC TV. Selig also noted that China is the third-largest market for U.S. exports, supporting over 800,000 American jobs, and that facilitating American business engagement with the Greater China market is a high priority.

The conference was part of the U.S. Commercial Service Business Forum Series, and attendees were able to meet one-on-one with U.S. Commercial Service diplomats and obtain the resources necessary to succeed in the Greater China market.

Growing American Exports, One Small Business at a Time (NYTimes)

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USCIB Remembers Richard M Hammer Longtime Steward of Tax Policy

Published on October 10, 2014

It is with great sadness that we mark the passing of Richard M. Hammer, who served for 13 years as USCIB’s international tax counsel following a 40-year career at Price Waterhouse, one of the predecessor firms of PricewaterhouseCoopers. While at PW, he also chaired USCIB’s Taxation Committee for many years. Hammer passed away on October 7 at age 84.

“Dick Hammer was a leading light in global tax policy,” said USCIB President and CEO Peter Robinson. “He brought a career’s worth of insight into the intricacies of multinational tax practice, the details of tax treaties and the importance of the multilateral structures that uphold them. What’s more, he was a true friend and mentor, especially to the USCIB staff members who worked with him and came to trust his wisdom and guidance.”

For 16 years, Hammer chaired the Taxation Committee of the OECD’s Business and Industry Advisory Committee (BIAC), through which the business community provides input to the OECD and its member governments on vital international tax issues. He advised the governments of Kazakhstan and the Russian Federation on the modernization of their tax systems, and he made major contributions to China’s tax law and regulation, serving as an advisor to the Chinese government from 1981 to 1993. He also acted as consultant to the Barbados ministry of international trade and has served as president of the International Fiscal Association, the premier global tax think-tank.

Memorial services were held for Hammer today in New York. He is survived by his wife Ellen, by his son Jeffrey and Jeffrey’s wife, Heidi, and by three grandchildren. Friends and colleagues of Dick Hammer are encouraged to sign an online guest book.

Ernst Young Partners with US State Department in Support of Women Entrepreneurs

Published on October 10, 2014

In early October, USCIB member Ernst & Young partnered with the Bureau of Information Resource Management’s Office of eDiplomacy at the U.S. Department of State for the Woman’s Entrepreneurship in the Americas Initiative. This public-private partnership will benefit women entrepreneurs in Colombia, El Salvador, Bolivia and Argentina.

The State Department announced the partnership on October 3:

On Thursday, October 2, the U.S. Department of State announced a new partnership between Ernst & Young (EY), a multinational professional services firm headquartered in London, and the Bureau of Information Resource Management’s Office of eDiplomacy at the Department of State. The partnership was sealed by signing a memorandum of understanding (MOU) outlining a public-private partnership that will directly benefit women entrepreneurs in four Latin American countries as part of the Women’s Entrepreneurship in the Americas Initiative (WEAmericas).

Under this new partnership, EY will contribute to the long-term impact of four interactive technology workshops called “TechCamps” which the Department will conduct over the next six months. The Bureau of Information Resource Management will manage the WEAmericas TechCamps in partnership with the Bureau of Western Hemisphere Affairs (WHA), the Secretary’s Office of Global Women’s Issues, and U.S. embassies in Colombia, El Salvador, Bolivia, and Argentina. These workshops will enable women entrepreneurs in those countries to make better use of technology to grow their businesses. EY-affiliated firms in each of the four countries will provide up to six months of business advice and mentorship to an entrepreneur selected from among the participants in each of the four events.

Read the full State Department media note.

Staff contact: Shaun Donnelly

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BIACs Continued Dialogue on Investment OECD Investment Consultation

Published on October 10, 2014

The OECD plays a major role in highlighting the contribution of international investment to worldwide growth by advancing investment policy reform and international co-operation. Restrictions on FDI through various forms of investment protectionism can have significant adverse economic consequences for the global economic system and for job creation. In light of the highly competitive global environment, investors need adequate protection when making important investment decisions.

The OECD and its Freedom of Investment Roundtable have a key role to play in helping policy makers put in place a supportive business environment that eschews protectionist measures.

BIAC has urged the OECD to embark on an ambitious pro-active investment program and confirm the organization’s leading role in ensuring that markets are kept open for foreign investment, with a view to boost economic growth and foster job creation. BIAC looks forward to participating in the upcoming consultation with the OECD Investment Committee on October 15 to pursue its active dialogue in this area and to contribute to discussions on the update of the OECD Policy Framework on Investment (PFI). The PFI is an essential tool to assist governments engaged in domestic reform, regional co-operation or international policy dialogue on investment.

Staff contacts: Shaun Donnelly

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USCIB Leads Charge for Strong TTIP Investment Chapter

Published on October 3, 2014

Investor State Dispute Settlement (ISDS) took center stage at stakeholder forum of the U.S.-EU Transatlantic Trade and Investment Partnership (TTIP) negotiations on October 1, with anti-business groups strongly opposing ISDS amid activist protests and political criticisms on both sides of the Atlantic.

Shaun Donnelly, USCIB’s vice president for investment policy, led the defense of investment provisions, including strong dispute settlement rules.

Representing transatlantic business, Donnelly spoke out for strong investment provisions, including ISDS, following a political diatribe on the perceived evils ISDS from a local NGO. He argued that investment is critical to growth, competitiveness and jobs in the U.S. and EU and that foreign direct investment is vital to overall investment flows.

Donnelly debunked urban myths on investment and ISDS, arguing that strong investor state dispute provisions in TTIP are essential because they give foreign companies a fair hearing by a panel of experts, without which they would otherwise face discrimination in domestic courts. Investment provisions are also crucial for setting a good model for other bilateral and regional trade initiatives. Press reports highlighted Donnelly’s role in standing up for common sense, pro-business investment policies.

Staff contact: Shaun Donnelly

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Obama Reappoints USCIB Chairman to Advisory Committee for Trade Policy

The White House issued a press release on October 1 listing presidential appointees to key administration posts. Among them, USCIB Chairman Terry McGraw has been appointed as a member of the Advisory Committee for Trade Policy and Negotiations. McGraw is also chairman of the International Chamber of Commerce and chairman of McGraw Hill Financial [now S&P Global].

ICC Appoints New Vice Chair of Commission on Customs and Trade

Published on October 2, 2014

The International Chamber of Commerce (ICC) announced the appointment of Luis Fernando Barbosa Sahagun as the new vice chair of the Commission on Customs and Trade Facilitation.

Barbosa is a partner at Global Business-Customs Solution Consulting Group (Mexico), a member of the International Customs Law Academy in Spain, and a businessman in international trade and customs holding board positions in several Mexican oil and gas companies.

As current chairman of the ICC Mexico Commission on Customs and Trade Facilitation, he liaises with the national authorities on behalf of the Mexican business community to improve the country’s customs and logistical operations and enhance trade facilitation.

“The ICC Commission on Customs and Trade Facilitation stands to benefit greatly from Barbosa’s broad expertise in areas relating to international trade, customs and logistics, as well as from his close relationships with chambers of commerce and industry representatives in Latin America,” said ICC Secretary General John Danilovich.