Growth, Jobs and Open Markets Archives

USCIB Deeply Disappointed by Failure to Implement WTO Trade Facilitation Agreement

Published on July 31, 2014

WTO logoWashington, D.C., July 31, 2014 – The United States Council for International Business (USCIB) expressed dismay at the failure of World Trade Organization members to begin implementing the landmark WTO Trade Facilitation Agreement (TFA). Final agreement on a protocol to implement the TFA was blocked by objections from India and a few other developing countries.

“This is incredibly disappointing, a huge blow to prospects for continued global recovery, most notably in the least-developed countries,” said USCIB Senior Vice President for Policy and Government Affairs Rob Mulligan. “Implementing the TFA could have significantly boosted economic growth by adding $1 trillion to the global economy, and creating as many as 21 million jobs, 18 million of those in developing countries.”

Mulligan added: “This failure undercuts the credibility of the World Trade Organization. It also will put a halt to efforts led by Director General Azevedo to develop a post-Bali work plan for completing the Doha negotiations. We hope the governments can find a way to resurrect the Trade Facilitation Agreement and somehow get the WTO back on track.”

Earlier this week, USCIB President CEO Peter Robinson sent a letter to U.S. Trade Representative Michael Froman expressing deep concern over developments at the WTO. This followed urgent action by the International Chamber of Commerce (ICC) and its global network to highlight the adverse consequences of missing the deadline to implement the TFA, and an appeal to G20 trade ministers by USCIB and other U.S. business groups urging swift implementation of the TFA.

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. More at www.uscib.org.

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

More on USCIB’s Trade and Investment Committee

More on USCIB’s Customs and Trade Facilitation Committee

Worrying Rise in Coastal Sea Hijackings

Published on July 25, 2014

Globally, 116 incidents of piracy and armed robbery against ships were reported to the Piracy Reporting Center of the International Chamber of Commerce International Maritime Bureau (IMB). The center raised concerns over a worrying trend of small tanker hijacks during the first half of 2014.

In Southeast Asia, reports indicate at least six coastal tankers were hijacked for their cargoes of diesel or gas oil, sparking fears of a new trend in pirate attacks. Before these hijackings, the majority of attacks in the region had been aboard mainly anchored vessels boarded for petty theft.

“The recent increase in the number of successful hijackings is a cause for concern,” stated IMB Director Pottengal Mukundan. “These serious attacks have so far targeted small coastal tankers. We advise these vessels to maintain strict anti-piracy measures in these waters, and to report all attacks and suspicious approaches by small craft.”

In 2014, 10 vessels have been hijacked, seven fired upon and 78 boarded. Two hundred crewmembers were taken hostage, five were kidnapped and two were killed, according to the IMB report.

Read more on the ICC website.

Staff contact: Kristin Isabelli

More on USCIB’s Customs and Trade Facilitation Committee

Action on Global Tax Reform

Published on July 22, 2014

tax penAs part of the project to rewrite global tax rules, the Organization for Economic Cooperation and Development (OECD) released commentary on Common Reporting Standards, a milestone in the effort to help countries implement an automatic exchange of information (AEOI) regime. AEOI would allow governments to automatically collect financial data from banks for tax purposes.

USCIB and the Business and Industry Advisory Council (BIAC) support OECD and G20 efforts to ensure taxpayers pay what they owe and appreciate the need for automatic exchange of information. The OECD must continue working with the private sector to ensure that the costs borne by businesses are taken into account and that business will need time to adapt systems to the AEOI requirements.

In September 2013, G20 leaders committed to AEOI as the new global standard of cooperation between tax administrations and supported the OECD’s work aimed at presenting a single global standard. Progress made on that front this year will go a long way toward implementing the policies necessary for identifying customers’ tax residences and exchanging relevant information between tax authorities.

Countries’ implementation guidance must also provide business with sufficient time to implement the significant new obligations that will be imposed on business by the common reporting standard.

“BIAC is particularly pleased that the business community, the OECD and its member governments were able to engage in a consistently frank and open dialogue that led to a result that reduced the potential burdens on business while achieving the OECD’s tax compliance objectives,” said Will Morris, chair of BIAC’s Taxation and Fiscal Policy Committee. “This dialogue must continue if the CRS is to be implemented consistently by the adopting jurisdictions.”

The Common Reporting Standard is based on a similar information-gathering program developed by the United States, the Foreign Account Tax Compliance Act (FATCA). That U.S. policy acted as a catalyst for the move towards AEOI in a multilateral context.

Staff contact: Carol Doran Klein

More on USCIB’s Taxation Committee

ICC Advises Against Exit Taxes

Published on July 17, 2014

As some European countries consider adopting exit taxes to increase revenue, the International Chamber of Commerce issued a policy statement warning that exit taxes could seriously disrupt international business restructurings and movements of capital.

The ICC statement strongly advises against exit taxes regimes which generally seek to tax unrealized gains the moment a company’s seat or assets leave the country. USCIB contributed to the development of this statement.

“While the international community is currently debating a fundamental restructuring of the international taxation system, we see that as a means to increase their revenues more countries are considering levying additional taxes, such as exit taxes,” said Chirstian Kaeser, global head of tax at Siemens and chair of the ICC Commission on Taxation. “These taxes increase the risk of double taxation and thereby negatively impact investment and growth at a time when economic recovery is still fragile,”

The revised policy statement acknowledges recent developments, most notably the Organization for Economic Cooperation and Development (OECD) Base Erosion and Profit Shifting Project (BEPS) initiated by the G20. USCIB plays a leading role in OECD global tax discussions and recently held its annual International Tax Conference on BEPS.

Read more on the ICC website

Staff contact: Carol Doran Klein

More on USCIB’s Taxation Committee

Exploring New Approaches to Trade Investment and Jobs

Published on July 16, 2014
OECD_logo
4787_image004
4855_image002

Exploring New Approaches to Trade, Investment and Jobs

Insight and Impact for Business from the OECD

 

October 30, 2014

The St. Regis Hotel | Washington, DC

 

KEYNOTE SPEAKER:

Michael_Froman

Ambassador Michael Froman

United States Trade Representative

NEW PANELIST:

Cathy_Novelli

Cathy Novelli

Under Secretary for
Economic Growth, Energy and the Environment
U.S. Department of State

AGENDA NOW AVAILABLE!

Click here to view a complete schedule, list of speakers, and panel descriptions.

The USCIB Foundation, BIAC and the OECD are jointly hosting a one-day conference in Washington, D.C. on October 30, 2014 to highlight the innovative work that OECD is doing in the areas of trade and investment and to discuss how this work impacts policy, job creation and trade negotiations around the world.  This program will bring together experts from the OECD, U.S. and foreign governments, and business on global value chains, services trade barriers, investment agreements, trade facilitation, and the relationship between regional and multilateral trade negotiations. Speakers will draw on OECD studies in discussing the current and future direction of global trade and investment policies.

Sponsored By:
McGraw_Hill_Financial_Logo
citi_logo
 
Partner Sponsors:
ACLI_logo
coalition_of_serviceS_industries_logo
us_chamber_of_commerce_logo

Registration costs are $200 for USCIB members and $225 for non-members, and

$100 for government and non-profit attendees.

Space is limited. Register now to secure your place at this unique new event!

You can register online by following this link, or by filling out a registration form.

For more information on the conference:

Please visit www.uscibtrade.org
or contact Diana Jack at djack@uscib.org
or (202) 617-3156.

 

For information on sponsorship opportunities:

Please contact Abby Shapiro at ashapiro@uscib.org or (617) 515-8492.

 

Click here to download an Outlook calendar reminder to save the date of October 30, 2014.

 

Click here for a list of hotels near the St. Regis in Washington, D.C. if you will be traveling for the conference.

USCIB’s Goldberg Contributes to New Report on Enhancing Security in Cross-Border Trade

Published on July 10, 2014

4781_image001The global economy has empowered criminals and terrorists on an international scale, and the challenge of preventing illicit activities has proven too much for traditional top-down government controls.

To better address this threat, the Stimson Center’s senior-level Partners in Prevention Task Force, which includes USCIB’s Senior Counsel Ronnie Goldberg, has endorsed seven proposals to advance both security and industry competitiveness by leveraging public-private partnerships that harness the power of decentralized, market-based incentives.

Targeted at U.S. industry and government stakeholders, the proposals follow an 18-month Stimson Center collaboration with hundreds of high-tech manufacturers and service providers, transport and logistics firms, and insurance providers. Several USCIB members participated in the project.

The report highlights several ways industry and government can collaborate to create a set of next-generation “trusted trader” regimes that facilitate legitimate trade and focus enforcement resources on higher-risk transactions. Task force members argue that “this is an especially opportune moment to act” on these ideas given the recently concluded WTO Trade Facilitation Agreement and the growing network of Mutual Recognition Arrangements among countries with Authorized Economic Operator programs. The report also addresses the U.S. government’s Export Control Reform Initiative, information sharing, the Terrorism Risk Insurance Program, and implementation of the International Trade Data System.

Goldberg commented: “There is increasing recognition of the importance of public-private partnerships.  Governments have a vital interest in bringing the experience, resources, and expertise of business to bear on the complex national security challenges posed by a globalized economy.”

“Ronnie brought deep subject matter expertise and an important ‘multi-stakeholder’ perspective to this effort,” said Brian Finlay, Stimson’s managing director. “She offered compelling insights on the economic, social, and security dynamics of an interdependent, global economy. She drew on many years of work with the OECD, International Chamber of Commerce, and ILO to convey the views of a diverse set of players at the national and international levels. But above all, she was a genuine pleasure to work with.”

Finlay continued: “We also benefited significantly from the expertise of some of Ronnie’s USCIB colleagues. In particular, we would like to thank Kristin Isabelli for her time and valuable substantive contributions. I hope Stimson has the good fortune to cross paths again soon with the USCIB team.”

Goldberg worked alongside task force chairman and former Under Secretary of Homeland Security for Science and Technology Jay Cohen (RADM, USN, Ret), as well as other industry leaders and national security experts, in shaping the recommendations.

An initiative of the nonprofit, nonpartisan Stimson Center, the group’s report was unveiled on May 29 in Washington, D.C. at an event featuring keynote remarks by senior White House advisor Rand Beers.

Staff contacts: Ronnie Goldberg and Kristin Isabelli

More on USCIB’s Customs and Trade Facilitation Committee

Coalition for Green Trade Endorses WTO’s Environmental Goods Agreement

Published on July 9, 2014

4779_image002USCIB joined with other U.S. business groups to form the Coalition for Green Trade on Tuesday to support new negotiations by World Trade Organization (WTO) members that would remove trade barriers on environmental technologies.

The coalition has called on members of the WTO to negotiate an ambitious Environmental Goods Agreement (EGA), which would eliminate trade barriers on a broad range of environmental goods, such as solar panels and recycled materials.

In addition, USCIB joined with a broad range of business associations and companies from around the world in calling for an EGA. An open letter to WTO negotiators signed by USCIB stated: “We are committed to working with governments around the world to ensure a commercially meaningful Environmental Goods Agreement that promotes economic growth, improves environmental outcomes and advances innovation.”

Global trade in environmental goods is estimated to be $1 trillion annually, and trade in environmental products more than doubled from 2001 to 2007. An EGA would further increase global trade in environmental goods and lower the cost of addressing climate challenges by removing steep tariffs, the groups said.

“EGA is important in its own right, and can also act as a stepping stone to lower tariffs in other sectors and value chains associated with environmental technologies,” said Eva Hampl, USCIB’s director of investment, trade and financial services.  “A high-quality agreement would advance global innovation and be flexible to permit new entrants and commitments to keep pace with new technologies.”

The Coalition for Green Trade is co-chaired by USCIB, the National Association of Manufacturers  and the National Foreign Trade Council, and its  steering committee includes the Business Council for Sustainable Energy, Coalition of Service Industries, Emergency Committee for American Trade, Information Technology Industry Council, Institute of Scrap Recycling Industries, National Electrical Manufacturers Association, Semiconductor Industry Association, Solar Energy Industries Association  and U.S. Chamber of Commerce.

The first round of EGA talks are scheduled to begin this week in Geneva. Representatives from NAM, NFTC and USCIB are leading a U.S. business delegation to participate in events and meetings on the sidelines of the official negotiations.

Staff contacts: Norine Kennedy and Eva Hampl

More on USCIB’s Trade and Investment Committee

More on USCIB’s Environment Committee

Pushing for Open Trade After Bali

Published on July 9, 2014

Globe CubeThe International Chamber of Commerce (ICC) has adopted a work-plan supporting further trade liberalization following the success of the meeting of Ministers of the World Trade Organization in Bali, Indonesia last December.

Prepared by the ICC Commission on Trade and Investment Policy, the “ICC World Trade Agenda post-Bali business priorities” welcomes the renewed pursuit of a global trade and investment agenda that moves talks beyond Doha.

The priorities include further trade liberalization regionally, through negotiations on a Trans-Pacific Partnership (TPP), a Transatlantic Trade and Investment Partnership (T-TIP), a Regional Comprehensive Economic Partnership (RCEP) and the Pacific Alliance. ICC also supports the rapid implementation of the WTO Trade Facilitation Agreement, which is especially crucial for developing countries.

“One of the big challenges for business, in an economy that is increasingly globalized, is that in many crucial areas, international rules are either non-existent or inadequate,” said James Bacchus, former U.S. Congressman and current chair of the Commission on Trade and Investment Policy. “The WTO has a fundamental role to play in modernizing the international rules of the game – and ensuring compliance with them – so that we can create an effective 21st-century trading system.”

Bacchus continued: “This is why the ICC is mobilizing business worldwide around a 21st-century multilateral World Trade Agenda for sustainable economic growth and job creation. The ICC believes that following the recent success in Bali, there is a real opportunity to make progress on a global trade agenda.”

Adopted at a meeting of the ICC Executive Board in Geneva on June 26, the policy statement urges trading countries to act on the following priorities:

  • Concluding global negotiations aimed at a balanced outcome for the critical areas of agriculture, non-agricultural market access and services, which would speed up multilateral trade liberalization within the WTO. This includes developing a clear path towards conclusion of the Doha Development Agenda and its planned reductions of industrial tariffs.
  • Eliminating barriers to trade in IT products and encouraging the growth of e-commerce worldwide. This requires expanding product coverage under the WTO Information Technology Agreement, and continuing to refrain from imposing customs duties on e-commerce. Global exports of IT products reached $1.4 trillion in 2010, making this one of the most important categories in world trade.
  • Fostering “greener” economic activity through trade. More countries should be encouraged to join the initiative announced in January 2014 by 14 WTO members to eliminate tariffs on environmental goods
    and expand product coverage for goods that protect the environment and address climate change.
  • Helping to liberalize trade in services through alternative negotiating approaches such as the Trade in Services Agreement. It is estimated that removing barriers to global exports of tradable services could generate world trade gains of $1 trillion, which could create almost 9 million jobs worldwide.
  • Encouraging the development of WTO disciplines over state-owned and state-supported enterprises that enter the market. Between 2004 and 2008, 117 state-owned and public companies appeared for the first time on the Forbes Global 2000 list of the world’s largest companies. The home governments of these companies protect them from competition, and this can be a way for governments to intervene in the marketplace and skirt their WTO commitments.
  • Improving the protection and promotion of investment through bilateral and other agreements, while also laying the groundwork for a high-standard multilateral framework on investment.

Staff contacts: Rob Mulligan, Shaun Donnelly, Eva Hampl and Kristin Isabelli

More on USCIB’s Trade and Investment Committee

Mayors Across America Express Support for Trade Promotion Authority

Published on July 2, 2014

4777_image001Exciting news on trade from our partners at the Trade Benefits America Coalition:

Last week, the United States Conference of Mayors adopted two resolutions
that urge congressional passage of Trade Promotion Authority (TPA) legislation and support America’s expansion of trade and investment ties around the world.

By adopting these resolutions America’s mayors have added their voices to the growing group of policymakers who understand the economic importance of TPA and expanding trade across the United States.

In December, a bipartisan group of 15 governors sent a letter urging President Obama and House and Senate leaders to support and advance pending trade negotiations – the Trans-Pacific Partnership (TPP), Transatlantic Trade and Investment Partnership (TTIP) and Trade in Services Agreement (TISA).

Congressional passage of the modernized TPA legislation will help shore up the economic benefits of these and future trade agreements.

Read the Trade Benefits America Coalition’s fact sheets on the TPA legislation.

USCIB sits on the steering committee of the Trade Benefits America Coalition, a group of associations and companies dedicated to the pursuit of U.S. international trade agreements that benefit American businesses, farmers, workers and consumers. The Coalition believes that passage of modernized Trade Promotion Authority legislation is important to help ensure American continues to benefit from trade.

Staff contacts: Rob Mulligan and Eva Hampl

More on USCIB’s Trade and Investment Committee

ICC Releases Global Survey 2014 Rethinking Trade and Finance

Published on July 2, 2014

4778_image002The International Chamber of Commerce (ICC) released the Global Survey 2014: Rethinking Trade and Finance, its largest and most comprehensive Global Survey to date – including data from 298 banks across 127 countries. The survey concludes that the growth rate of international trade has dropped drastically when compared to the years before the global financial crisis.

Survey highlights include:

Lack of available trade finance caused global trade growth to slow

Global trade growth was a shade above 3 percent during 2013, although picked up to an annualized growth rate of 4 during the first quarter of 2014 and is anticipated to accelerate beyond 5 percent through 2016. However, in terms of the “trade finance gaps,” 41 percent of survey respondents reported that they perceived a shortfall of trade finance globally.

KYC and AML regulations caused banks to decline transactions and close relationships

Know Your Customer (KYC) and Anti-Money Laundering (AML) regulations caused 68 percent of respondents to decline transactions, and nearly a third (31 percent) to close down correspondent account relationships.

G20 countries stalled agenda to open up world trade through trade-restrictive measures

G20 countries accounted for three quarters of the trade restrictive measures imposed since 2008, with Word Trade Organization figures showing that these countries introduced 193 new trade restrictive measures between December 2012 and November 2013. Such restrictions – many of which are protectionist and therefore trade distorting – have stalled the agenda to open up world trade.

Read more on the ICC website.

Read about the ICC’s 2014 Trade Register Report.

Staff contact: Shaun Donnelly and Eva Hampl

More on USCIB’s Trade and Investment Committee