Policy Areas Archives

USCIB Provides Business Voice at UN Discussion on Informal Economy

Published on October 19, 2015
Ariel Meyerstein
Ariel Meyerstein

USCIB Vice President Ariel Meyerstein participated as a lead discussant at a panel at the United Nations on “Promoting Inclusive Growth: Transitioning from the Informal to the Formal Economy” on October 16. Meyerstein provided the private sector perspective on the challenges associated with informal employment. The panel followed this year’s earlier release of the International Labor Organization’s (ILO) Recommendation on Transitioning from Informal to Formal Economies.

Formalizing employment is of strategic significance for millions of workers and enterprises around the world who are working and producing in precarious and vulnerable conditions.  It is estimated that half of the global labor force and 90 percent of small businesses operate in the informal economy, with women and youth disproportionately engaged.

The panel discussion provided a platform for governments and development partners to explore how the transition from the informal to the formal economy could contribute to enhancing productivity, innovation and achieving inclusive growth and decent work for all. Panelists explored how the ILO recommendation can contribute to the fulfillment of the UN Sustainable Development Goals and identified the policies needed to promote the transition from the informal to the formal economy.

Meyerstein addressed how the ILO recommendation is important to the business community and what the role of the private sector is in ensuring formalization.

(Meyerstein’s presentation begins at 1:27:00.)

“The employers actually proposed this recommendation,” Meyerstein said. “You can see this emphasis on economic growth and job creation expanding the attractiveness of the formal sector. That’s something we were pushing for and it’s good that it’s in the recommendation.”

Meyerstein provided examples of how businesses can facilitate the transition from the informal to the formal economy, including USCIB member Mastercard’s partnership with Egypt to provide all citizens with a national ID, thereby expanding financial inclusion. He noted that part of the solution to addressing informality is making the formal economy more attractive to businesses. He concluded by saying that employers can also help by addressing youth unemployment and the skills mismatch, and he mentioned the Global Apprenticeship Network, a project by the International Organization of Employers designed to teach youth the skills they need to join the formal economy.

USCIB’s Klein Tells Media Dispute Resolution is Crucial for BEPS

Published on October 16, 2015

taxes-portIn a Bloomberg BNA article, Carol Doran Klein, USCIB’s vice president and international tax counsel, explained that effective dispute resolution will be necessary for the success of the Organization for Economic Cooperation and Development’s (OECD) project on base erosion and profit shifting (BEPS), designed to rewrite the rules of the international tax system. The OECD released its final BEPS recommendations on October 5.

At an international tax conference on October 15 in Toronto, Klein told attendees that BEPS’s new rules on profit attribution and allocation of risk will lead to more controversy, because there is no guarantee that governments will interpret these rules consistently. Effective dispute resolution is therefore key for the successful implementation of the BEPS recommendations.

“I think that the arm’s-length standard, as set out in the guidelines, can work—but only with real functioning dispute resolution,” Klein told Bloomberg BNA. “It is going to be key to resolve disputes early, for this process to have success,” she said. “You could have real transfer pricing reform, but only in my view if the dispute resolution is implemented as indicated in the guidance.”

Klein also said that questions risk analysis about risk analysis were likely to cause dispute, and the implementation could be subjective.

“It is clear that the risk-adjusted return depends on the credit-worthiness of the borrower and the riskiness of the investment, but there’s very little guidance on how these factors should be determined and weighted,” Klein told Bloomberg. “Tax administrations may also be examining the riskiness of a transaction after that risk has played out, so reaching agreement on a risk-adjusted return may be challenging.”

Read more: “Companies See Dispute Resolution as Crucial in BEPS” (Paywall)

 

 

ICC Launches Climate Website on the Road to COP21

Published on October 14, 2015

cop21_slider_sourceIn less than 50 days, over 40,000 participants will converge in Paris to conclude talks on a new global climate agreement. As the business focal point for the United Nations climate talks and the landmark Paris Climate Conference (COP21), the International Chamber of Commerce (ICC) has launched a one-stop website to mobilize business in the run up to and during the two-week conference.

Launched during Climate Week, the dynamic website provides overviews of and access to global business positions and recommendations. The website’s newsroom will help visitors keep pace with developments, providing easy access to the latest climate policy news, ICC press releases, speeches, videos and infographics.

The user-friendly ‘Road to COP21′ website also provides a comprehensive overview of the range of briefings and events hosted by ICC and partners during COP21. These include the official COP21 Business Day on December 4 and the International New York Times’ Energy for Tomorrow 2015 conference on December 8.

“The COP21 website is ICC’s response to the need for bespoke support services for member companies of the world business organization,” said ICC Secretary General John Danilovich. “Our aim is to ensure that everything business needs to navigate COP21 is just a click away.”

Visit cop21.iccwbo.org

USCIB Cites Concerns Over End of “Safe Harbor”

Published on October 13, 2015

Digital GlobeUSCIB joined 22 other associations in signing a letter to European Commission President Jean-Claude Juncker explaining how the wholesale invalidation of the U.S.-EU Safe Harbor program will negatively impact the business operations of thousands of companies that rely on transatlantic commercial data transfers.

Established in 2000, the U.S.-EU Safe Harbor framework makes it easier for American companies to certify that they meet an “adequacy” standard for digital privacy protection, which under EU law is necessary to allow businesses to transfer data from EU countries. On October 6, the EU Court of Justice ruled that the 2000 U.S.-EU Safe Harbor Decision is invalid.

“This invalidation constitutes a serious disruption for the thousands of companies that have relied on the framework for commercial data transfers between the EU and the United States,” wrote USCIB and 22 other U.S. and EU tech-based associations in a joint letter to the European Commission. “These commercial data flows are central to facilitating transatlantic trade and the continued development of Europe’s data driven economy.”

The letter explained that “companies take their legal commitments very seriously when transferring data to the United States in compliance with European law,” and that the EU court’s judgement has created legal uncertainty. The letter urged the European Commission to come up with a harmonized implementation of the court’s judgement, so as to avoid “fragmenting the EU’s common approach to international data transfers.”

The joint letter also called on the European Commission to provide guidance for companies operating under the safe harbor framework, and for both the U.S. government and the Commission to urgently conclude their negotiations aimed at strengthening the Safe Harbor framework.

Read the full letter here.

USCIB Promotes Women’s Empowerment in the Food Supply Chain

Published on October 12, 2015

africa_fruit_vendors_lo-resThis week delegates from around the work will be reviewing world food security policies at the 42nd session of the Committee on World Food Security (CFS) at the United Nations Food and Agriculture Organization (FAO).  A record-setting 126 private sector representatives from 39 countries have registered to attend the 42nd plenary session taking place from October 12 to 15 in Rome. CFS is one of the most inclusive intergovernmental platforms that allows stakeholders to work together and ensure food security and nutrition for all.

In an effort to catalyze political will and focus around food security, USCIB supported an event on October 9 in Rome about “Women’s Empowerment: Solutions at the Nexus of Agriculture, Nutrition and Enterprise,” co-chaired by Cherie Blair, president and founder of Cherie Blair Foundation for Women, and Irene Khan, director general of the International Law Development Office. The event convened high-level representatives from business, government and NGOs for a dialogue about women’s access to productive resources (finance, tools, technology, land), women’s contributions to health and nutrition and the role of women in fostering food security.

Shaun Donnelly, USCIB’s vice president for investment and financial services, participated in the broad-based roundtable discussion, which included business leaders, 12 FAO ambassadors and representatives from leading NGOs. There was  broad agreement about the challenges faced by women and the importance of having multi-stakeholder partnerships to  empower women in agriculture and supply chains. Empowering women would improve food security and nutrition, as well as create a positive ripple effect in raising the standard of living for their families and strengthening their communities.

Many agreed that when women have more control over household assets and income, they invest more in their families’ food, health, education and children’s well-being. Thriving families are better positioned to contribute meaningfully to their communities, and a well-nourished population is better able to participate in the workforce. By empowering women in agriculture and supply chains, the world can make significant gains toward realizing the FAO’s Strategic Objectives and several of the broader United Nations Sustainable Development Goals (SDGs), such as:

USCIB Members Lead B20 Digital Economy Forum

Published on October 8, 2015

Digital GlobeUSCIB member companies dominated the agenda at the B20 Digital Economy Forum in Istanbul on October 6. Speakers included representatives from Intel, Boeing, Oracle, eBay, PayPal, Google, AT&T, Facebook, IBM. HP, GE, Ernst and Young and more.

“USCIB ICT Committee Chair Eric Loeb (AT&T) and Vice Chair Joe Alhadeff (Oracle), as well as dynamic local reps from member companies made effective presentations on governmental policies affecting the Digital Economy,” said Shaun Donnelly, USCIB vice president for investment and financial services, who attended B20 meetings in Istanbul this week.

The B20 is finalizing its policy recommendations to the G20 on improving the policy environment for the digital economy. The B20 Digital Economy Policy Paper is online here.

Excerpted from the paper, the B20 priorities on the digital economy are:

  1. Develop alternative policies to data localization
    • Address growing issues concerning the movement of data and adopt alternative policies to data localization.
  2. Improve the global trade system for the emerging digital economy with direct focus on e-commerce and digital trade
    • Discuss trade-facilitation measures to improve customs procedures with a direct focus on e-commerce challenges.
    • Establish one-contact information centers to support SMEs around legislation issues concerning cross-border e-commerce.
  3. Improve access of enterprises to digital economy and infrastructures
    • Commit to improved digital infrastructures and incorporate a five-year universal broadband connection target for G20 countries
  4. Develop and finance programs aimed at reducing skills mismatches in an era of rapid changes in technology and innovation
    • Establish a problem-solving and practice-focused STEM education approach in collaboration with the business community to prevent the expected skills shortage in STEM jobs.
  5. Assure legislative and regulatory support for alternative forms of funding
    • Support the emergence and growth of alternative sources of funding by harmonizing policies, regulations, and standards.
  6. Improve digitization of government processes
    • Increase use of digital technologies to transform key business processes to create greater leaps in efficiency and productivity.
    • Promote integrity in public procurement by instituting digital systems for efficiency and transparency to address issues during the procurement process.
    • Reduce corruption and improve efficiency in trade by moving towards a comprehensive digital environment for customs and cross-border systems through public-private collaboration in all G20 countries within five years.
  7. Establish a G20 governance mechanism to implement measures to improve the digital economy
    • Start a study group, with the inclusion of the World Trade Organization, World Customs Organization, International Trade Center, World Bank, OECD, the Global Commission on Internet Governance and the relevant engagement groups.

USCIB Unveils “Business for 2030” Portal at Global Employers’ Summit in Bahrain

Published on October 8, 2015
Ronnie Goldberg (USCIB) unveils the Business for 2030 website at the Global Employers’ Summit in Bahrain.

The International Organisation of Employers (IOE) joined forces with its member the Bahrain Chamber of Commerce and Industry (BCCI) to organize the first Global Employers’ Summit in Bahrain from October 6 to 7 under the auspices of Prince Salman bin Hamad Al Khalifa. At the summit, IOE leaders signed the Bahrain Deceleration, underscoring the business’s commitment to the United Nations 2030 Development Agenda.

Organized around seven panel sessions, high-level speakers led the interactive debates on several topics including the free movement of workers, trade and jobs, global youth unemployment, and business and human rights. Also high on the agenda was an exploration of how business can contribute to the realization of the Sustainable Development Goals (SDGs) recently adopted by the UN General Assembly.

USCIB Senior Counsel Ronnie Goldberg attended the summit and unveiled USCIB’s Business for 2030 website, designed to showcase the private sector’s contributions to the UN SDGs. Part informative resource, part catalogue of business engagement, Business for 2030 features over 120 examples from 30 companies in over 100 countries of how businesses are helping to achieve 70 of the 169 SDG targets.

The Summit concluded with the signing of the Bahrain Declaration by BCCI Chairman Khalid Abdulrahman Almoaymed, and IOE President Daniel Funes de Rioja, reflecting the concrete commitment of the global employer community towards:

  • Fostering job creation
  • Creating labor market opportunities for young people and women
  • Ensuring employment is safe and occurs in the formal economy
  • Making labor migration a win-win situation
  • Strengthening implementation of international commitments

The declaration acknowledges the role business plays in contributing to the concerted global effort towards achieving shared progress and prosperity.  It further reinforces business support for the SDGs, and represents a clear expression of readiness to cooperate at national and international levels to reach the global development targets.  It goes on to mark a renewed commitment to engage with trade unions and all other stakeholders to contribute to more and better jobs, growth and prosperity, and provides reaffirmation of the UN Guiding Principles on Business and Human Rights, as a means to guide businesses as they seek to respect human rights throughout their operations.

In addition to contributions as speakers and moderators at the Summit, delegates from the International Organisation of Employers, including Goldberg, met in private session with Prince Salman to discuss the key role of business in the economic and social development of Bahrain.

See the summit’s declaration, summit and photos.

USCIB Defends Investment Agreements at G20 Global Forum in Turkey

Published on October 7, 2015
istanbul_source
Istanbul, Turkey

On October 5, USCIB Vice President for Investment and Financial Services Shaun Donnelly participated in a panel discussion in a day-long OECD/G20 Global Forum on International Investment in Istanbul.

Along with Donnelly, the following panelists made the case for strong investment chapters in international trade agreements, including investor-state dispute settlement (ISDS): Deputy U.S. Trade Representative Michael Punke; Kurt Tong, principal deputy assistant secretary for the bureau of economic and business affairs at the Department of State; and Bernhard Welschke, secretary general of the Business and Industry Advisory Committee (BIAC) to the OECD.

“Other panelists, including from the EU and other foreign governments plus senior OECD staff, criticized  investment agreements, especially ISDS arbitration procedures,” said Donnelly. “Our ‘gang of four’ and a few other business panelists each in our own way made the case for strong investment agreements.”

Donnelly continued: “We’re counting on Ambassador Punke, representing USTR Michael Froman, to be a strong voice for strong, balanced Investment agreements along lines of U.S. Model Bilateral Investment Treaty.”

USCIB Participates in the 4th Int’l Conference on Chemicals Management

Published on October 5, 2015
Medina_SAICM
Helen Medina (USCIB) in Geneva, encourages others to engage in SAICM.

On Friday, October 2, 2015, the fourth session of the International Conference on Chemicals Management (ICCM4) concluded in Geneva, Switzerland.  Over 450 delegates, from governments, international organizations and non-governmental organizations and industry participated in the week-long conference.

The USCIB member delegation included American Cleaning Institute, American Petroleum Institute, Boeing and the Toy Industry Association. Other USCIB members including ACC, CropLife America, Exxon, Pfizer, Johnson & Johnson, and Procter & Gamble participated in the week-long meeting under other international delegations.

ICCM4, the decision-making body for the Strategic Approach to International Chemicals Management (SAICM) made several important decisions meant to promote the 2020 goal “that chemicals are used and produced in ways that minimize adverse effects on human health and the environment.” Additionally, the conference decided on the process for continuing international efforts towards the sound management of chemicals beyond 2020. The process includes an independent evaluation of SAICM and a schedule of meetings, to be agreed by March 2016, to prepare recommendations to be considered at the fifth ICCM in 2020.

“USCIB was indispensable in the negotiations and succeeded in strengthening the role of industries that use chemicals in addition to the chemical industry itself,” said Ernie Rosenberg, president and CEO of the American Cleaning Institute. “The work of USCIB laid the foundation for a leading role as the SAICM process moves forward to the next International Conference on Chemicals Management and the development of a new process beyond 2020.”

USCIB members actively participated in several of the negotiations, one of which was the Chemicals in Products (CiP) program. That program will move into the implementation phase as a voluntary, initiative which would be open to SAICM stakeholders’ input. The program would also be flexible enough to accommodate existing and developing industry schemes. USCIB made interventions to ensure that a separate CiP secretariat would not be created. Instead, the United Nations Environment Programme, in cooperation with the CiP Steering Group, would continue to develop in an open and inclusive manner. Future updates of the guidance documents would be considered as appropriate.

“Beyond the ICCM4 meeting, my, and TIA’s, involvement with SAICM and CiP has been an important component of TIA’s advocacy efforts on behalf of our members,” said Alan Kaufman, senior vice president for technical affairs at the Toy Industry Association. “Helen Medina has done a terrific job of coordinating disparate industry sectors, keeping us all informed, and consolidating and articulating our positions in a coherent manner.”

On the topic of endocrine disrupting chemicals (EDCs), USCIB united with CropLife International, and the International Council of Chemical Associations to highlight that the science on EDCs remains very contentious. Industry noted in the outcome document that the 2012 WHO-UNEP ‘State of the Science Report’ is not an accurate perspective on the current science. Risk assessment was also reaffirmed by many countries as the preferred approach to manage EDCs, and industry successfully supported governments in avoiding a call for the development of lists of EDCs and/or potential EDCs.

With regards to Highly Hazardous Pesticides (HHPs), the crop protection industry worked to introduce sound scientific language on the approach that insists on risk management and risk mitigation. The industry also defeated an NGO-initiated movement to form a Global Alliance to Phase-out HHPs. The Alliance would have been a duplication of efforts on the management of HHPs already being undertaken by the UN Food and Agriculture Organization (FAO) and supported by voluntary industry commitments and actions.

On hazardous substances within the life cycle of electrical and electronic products, the outcome document invites the UN Industrial Development Organization in partnership with the Inter-Organization Programme for the Sound Management of Chemicals (IOMC) to work with others to develop a work plan for hazardous substances used in electrical and electronics products. Original equipment manufacturers should implement various measures including take-back programs, industrial hygiene and environmental monitoring programs, and safer and more sustainable chemistry in manufacturing.

ICCM4 also adopted environmentally persistent pharmaceutical products as a new “emerging policy issue”. The IOMC will develop a work plan, including information generation and sharing, to fill identified knowledge gaps.  For more detailed information on the outcomes of ICCM4, please contact Helen Medina.

Business Commends the OECD, G20 on the 2015 BEPS Package

Published on October 5, 2015

The Organization for Economic Cooperation and Development (OECD) released its long-awaited 2015 BEPS recommendations on October 5, concluding the two-year Base-Erosion and Profit Shifting (BEPS) project designed to rewrite global tax rules.

“The BEPS project needed to happen, and the OECD and G20 should be congratulated both for their hard work and for achieving high-level consensus across many issues,” said Will Morris, chair of the tax committee of the Business and Industry Advisory Committee (BIAC) to the OECD. “Moreover this high-level consensus was achieved while working to an exceptionally ambitious timetable.”

Morris added that the business community still has concerns that some of the BEPS recommendations may lead to double taxation of income, and “many important details remain to be worked out.”

For many years, the OECD has successfully promoted cross-border trade and investment by removing barriers – including significant tax barriers – to growth.  The task of the last two years has been to respond to legitimate public concern about double non-taxation.  In spite of the reservations raised, BIAC acknowledged that the BEPS process and the recommendations released today appropriately respond to those concerns.

Carol Doran Klein, USCIB’s vice president and international tax counsel, has worked closely with members, the U.S. government, BIAC and the OECD secretariat throughout the BEPS process.

In a statement released today about the 2015 BEPS package, BIAC noted two recent develops:

  • The growing acceptance among countries that mechanisms for resolving tax disputes need to be significantly improved: changes to the treaty-based Mutual Agreement Procedure will be important, but the moves of some key countries towards Mandatory Binding Arbitration will bring even more substantial benefits, as the risk of double taxation would be greatly reduced.
  • A potential monitoring mechanism on implementation of the BEPS recommendations to be overseen by the OECD: BIAC believes this is an important development that can help to ensure consistent application of the BEPS recommendations by countries, and we hope that business will be able to play a significant and constructive role in this monitoring process.

BIAC also welcomed the intention of G20 countries to remain part of this process for the foreseeable future, and we appreciate the commitment to ensure that the distinctive needs of developing countries will be also appropriately addressed.

The International Chamber of Commerce also released a statement today welcoming the conclusion of the BEPS project but underscoring significant implementation challenges in the near future.