Policy Areas Archives

OECD Updates its Policy Framework for Investment

Published on July 6, 2015
Kimberly Claman (Citigroup)
USCIB member Kimberly Claman (Citigroup) speaks at the joint meeting of the World Bank and the OECD.

At last month’s annual Ministerial meeting of the Organization for Economic Cooperation and Development (OECD), the 34-member organization adopted and issued an important update to the OECD’s Policy Framework for Investment (PFI), first adopted nine years ago in 2006. Basic information on this OECD investment policy effort, including the text of PFI, the OECD’s fact sheet and press release, the Ministerial Council’s action on the PFI, and relevant background materials are available here.

The PFI offers a broad-based checklist of policy recommendations for consideration by individual governments, especially developing country governments who want to attract and retain Foreign Direct Investment (FDI).  The checklist is voluntary and has been used successfully in connection with OECD advisory services, regional FDI policy dialogues and policy review of individual countries that step forward to use this policy tool.

USCIB, both directly and through the OECD’s Business and Industry Advisory Council (BIAC) has been quite active in this effort to update the PFI.  USCIB staff and member company representatives have participated in reviews of draft versions of the update held in Paris, Brussels and Washington as well as playing a leading role in authoring detailed formal BIAC comments into the OECD drafting process.  I was honored to lead BIAC teams in the formal stakeholder consultations on PFI held in Paris and Brussels over the past year.  USCIB members Kimberley Claman of Citigroup and Nicole Bivens Collinson of Sandler Travis & Rosenberg P.A. were panelists at a joint OECD/World Bank seminar on the PFI held in Washington this spring.

Nicole Bivens Collinson (Sandler, Travis & Rosenberg)
USCIB member Nicole Bivens Collinson (Sandler, Travis & Rosenberg) speaks at the joint meeting of the World Bank and the OECD.

As in so many policy areas, in investment the critical variable is host government commitment to policy reform and implementation.  PFI is not a panacea or magic wand to attract investment. It should not be oversold. But in the hands of a government committed to policy reform in the investment area and beyond, the PFI has proven it can be a useful, practical tool to help improve investment climate to promote growth and development through FDI.

I commend the OECD for a job well done in updating the PFI and for the increased priority the organization is according to investment and FDI issues within OECD member countries and beyond.

This post was originally published on the Investment Policy Central website.

S&ED Outcomes: Investing in China

Published on July 6, 2015

S&EDLast week, the United States and China concluded their seventh meeting of the Strategic & Economic Dialogue (S&ED) in Washington, D.C.  The annual high level dialogue, which launched in 2009 to provide a forum to discuss a wide range of bilateral, regional, and global issues between the two countries, has become an integral part of the economic relationship. The meeting resulted in a number of joint strategic and economic outcomes issued by the Departments of State and Treasury which co-lead the U.S side.  The Treasury also published a U.S.-specific fact sheet on the outcomes of the economic track.

At the dialogue, both nations reaffirmed their commitment to negotiate a high-standard Bilateral Investment Treaty (BIT) and intensify negotiations.  Even before the meetings began, the BIT was considered one of the top issues on this year’s agenda.  The 19th round of BIT negotiations concluded earlier this month in Beijing, following a period of a year and a half, during which China developed its “negative list,” a compilation of areas it would like exempted from the BIT’s market-opening rules.  Despite the apparently slow process of the negotiations, China presented its list, the first the country has ever created, at the June round in Beijing, demonstrating its commitment to the negotiations.  The U.S. experts, led by USTR and State, are now reviewing the initial Chinese list in great detail.

A major outcome of last week’s S&ED, described as one of the dialogue’s most significant outcomes by U.S. Treasury Secretary Jack Lew, was China’s commitment to provide an updated negative list reflecting a commitment to open investment environments by September of this year.  This could be a key step in the negotiation process, moving discussions forward in a manner that will allow for an appropriately market opening agreement to benefit both negotiating parties.  The Treasury Department’s fact sheet explains that U.S. officials have made clear to China that their list of exceptions will have to be ‘very limited and narrow’, as well as ‘represent substantial liberalization’.

Adequate investment protection is indispensible for U.S. investors in China, as anywhere in the world.  While a successful BIT presents an opportunity for U.S. investors to gain access to new sectors in the Chinese market, without protections and narrowly tailored exclusions, the benefits remain limited.  USCIB’s Shaun Donnelly, Vice President of Investment and Financial Services, discussed the S&ED on a segment on CNBC last week, highlighting the importance of the investment talks.

Despite being the world’s two largest economies, and the destinations for about 30 percent of global foreign direct investment (FDI), the United States and China account for a relatively small share of one another’s FDI.  In 2014, Chinese FDI in the United States exceeded American FDI in China for the first time.  Given the size and dynamic nature of the Sino-American economic relationship, the importance of finishing these the BIT negotiations with a high-standard outcome cannot be overstated; a sub-standard agreement would do more harm than good.  Progress from the most recent round of negotiations and the outcomes of the S&ED provide much needed momentum to the process and hopefully, the United States and China can capitalize on this momentum, leading to a swift conclusion of a strong agreement.

Of course, other developments – be they positive or negative – continue to be relevant to American or other foreign investors looking at China, which remains a complex and challenging place to do business.  Even as we see signs of progress on the BIT, other developments send discouraging signals – from sectoral restrictions to a new NGO law that threatens to restrict independent business organizations in China.  The U.S. business community, including USCIB, will continue to focus on investment issues in China, working to encourage the two governments to provide clear protections and real market opening for potential investors in both directions.

This blog post was originally published on the Investment Policy Central website.

 

Business Weighs in on UN Treaty Process on Business and Human Rights

Published on July 2, 2015
Photo credit: UN, Pierre Albouy
Photo credit: UN, Pierre Albouy

As the United Nations Human Rights Council begins work on a legally binding treaty aimed at regulating transnational enterprises with respect to human rights, USCIB’s global network published a position paper representing the views of international business on the UN treaty process.

Jointly written by the International Chamber of Commerce, the International Organization of Employers, the Business and Industry Advisory Committee to the OECD and the World Business Council for Sustainable Development, the paper argues, among other things, that the UN treaty process must not undermine the ongoing implementation of the UN Guiding Principles on Business and Human Rights, that the process must be inclusive of all stakeholders and that the treaty should address all companies, not just multinationals.

As one of the only trade associations with membership in three of the four organizations that drafted the position paper, USCIB was instrumental in working with the IOE to draft the document, and was decisive in the ICC and BIAC decisions to support the final version.

The global business community has expressed concern that the proposed UN treaty process may hinder the implementation of the UN’s Guiding Principles, which were developed over the eight year mandate of former UN Special Representative on Business and Human Rights John Ruggie, and have very quickly become the authoritative international framework on the issue. The Guiding Principles’ “protect, respect, remedy” established a framework that reaffirmed states’ obligations under international law to protect human rights, while businesses, regardless of size or ownership structure, are responsible for respecting these rights throughout their operations. The principles also establish that both states and corporations share the task of ensuring access to effective remedies for human rights victims.

“We’ve seen tremendous uptake of the UN Guiding Principles in a very short period of time, but not enough implementation, particularly on the National Action Plans that states have been tasked with creating.  The treaty process will prove most effective if it reinforces the ’protect-respect-remedy’ framework with further international legal weight, creating more pressure on states take to their duty to protect more seriously, which includes supporting and encouraging business enterprises’ efforts to respect human rights.  ,” said USCIB Vice President Ariel Meyerstein. “The treaty also provides an opportunity to strengthen the rule of law and access to remedy through national courts where harms occur. That will ultimately provide redress for more victims more efficiently than other proposed means of ensuring access to remedy, which in effect may only offer hope to victims of the most heinous violations. .”

Last year, the UN Human Rights Council voted in favor of a proposal sponsored by Ecuador and South Africa to negotiate a binding treaty on business and human rights. On July 6, the Intergovernmental Working Group (IWG) on Transnational Corporations and Human Rights, which will develop the treaty, will hold the first of several annual meetings. The position of the United States – which voted against the treaty last year – remains not to participate in the IWG. The IOE will participate in the IWG and will also host a side event to  provide business input.

Other positions by business on the UN Treaty Process include:

  • The treaty should contribute to the effective implementation of UN Guiding Principles by requiring states to draft National Action Plans.
  • The treaty’s scope of must be limited to business and human rights, not other issues such as climate change.
  • The treaty must not shift the responsibility from the entity perpetrating a human rights violation to the enterprise linked in some way to that entity, a principle well-established by both the UN Guiding Principles and OECD Guidelines for Multinational Enterprises.
  • To strengthen national implementation, the treaty should require governments to report back to the UN supervisory machinery about measures taken.

Read the position paper: “UN Treaty Process on Business and Human Rights: Initial Observations by the International Business Community on a Way Forward.”

 

China-OECD Cooperation Crucial for International Business

Published on July 2, 2015

The seventh joint meeting of the U.S.-China Strategic and Economic Dialogue wrapped up on June 24, concluding the highest-level bilateral forum between the two countries. The dialogue is essential for fostering a constructive relationship between the two nations, as well as for paving the way for Chinese economic reform. These bilateral economic talks are complemented by multilateral initiatives, including engagement with the Organization for Economic Cooperation and Development (OECD).

The OECD and China are expected to agree on a detailed program of work for 2015-16. This is particularly timely as China will soon unveil priorities for its 2016 G20 Presidency, and will also outline objectives early next year for its 13th Five Year Plan. China is experiencing an enduring investment downturn and deeper regional divergences.

A return to strong and sustainable growth will necessitate a firm commitment to policy reforms and their implementation. The Business and Industry Advisory Committee (BIAC) to the OECD China Task Force regularly highlights the importance of strengthening rule of law and creating a level playing field for all companies in China, whether foreign or domestic, private or state-owned.

“China and the OECD need each other now more than ever,” said Joerg Wuttke, chair of the BIAC China Task Force, commenting on the visit of Chinese Premier Li Keqiang to the OECD Headquarters in Paris. “As Chinese companies ramp-up overseas investment, and as OECD-based companies continue to sow investments in China, a new and enhanced program for China-OECD cooperation should benefit both parties,” he added.

Shaun_CNBCThe U.S. business community supports China’s reform agenda. On June 25, USCIB Vice President Shaun Donnelly talked about the U.S. business community’s perspective on the U.S.-China Strategic and Economic Dialogue in an interview with CNBC. He noted that the prospects are good for a bilateral investment treaty between the U.S. and China, and he discussed cyber security and government procurement.

USCIB has also been engaged with the OECD’s comments on China’s 13th Five Year Plan, contributing to BIAC’s submission on the plan last year. USCIB’s China Committee will meed to discuss OECD-China relations in late July.

The OECD, a world-leader in policy tools, analysis, and advice on economic governance, is well placed to advise China on its reform agenda. OECD instruments, such as the Guidelines for Multinational Enterprises and the Anti-Bribery Convention, will be especially useful for Chinese companies investing overseas that face both the complexities and expectations of global markets.

“Sustaining China’s growth is in the interest of all parties,” commented Wuttke. “Recognizing the enormous potential for reform, the BIAC China Task Force looks forward to contributing to this next phase of China-OECD cooperation.”

A Victory for the U.S. Trade Agenda

Published on July 1, 2015
President Obama signs Trade Promotion Authority on June 29.
President Obama signs Trade Promotion Authority on June 29.

After going back and forth between the Senate and the House of Representatives, Trade Promotion Authority finally passed both chambers of Congress and was signed into law by President Obama on June 29. The conclusion of this legislation, along with an additional trade preferences bill that includes Trade Adjustment Assistance, represents a major victory for the pro-trade community and sets the stage for the finalization of two high standard trade deals – the Trans-Pacific Partnership (TPP) with Pacific rim countries, and the Transatlantic Trade and Investment Partnership (TTIP) with the European Union.

Finalizing TPA required a strong advocacy push by USCIB and other members of the Trade Benefits America Coalition, an organization of American business associations dedicated to spreading the word about the benefits of trade to U.S. jobs, growth and workers. The campaign involved many moving parts including earned media, paid media, third party engagement, grassroots activity, and consistent social media engagement. In 2015 alone, coalition members made more than 250,000 direct contacts with members of congress and their staff.

Now that TPA has passed, the business community will focus its efforts on securing a high standard TPP. TPA has given Obama the leverage he needs to close out negotiations on the free trade agreement with 11 other Asia-Pacific countries.

Read more about the trade bills President Obama signed into law on the White House Blog.

USCIB Advocates for TTIP at McCain Institute Debate

McCain_InstitueUSCIB Vice President Shaun Donnelly defended the Transatlantic Trade and Investment Partnership (TTIP) at a debate hosted by the McCain Institute in Washington, D.C. on June 22. The debate, “A New Transatlantic Trade Deal: Good for America?”, focused on whether the trade deal between the United States and the European Union would be positive for American jobs, growth, labor standards and the environment.

Donnelly and former U.S. Congressman Jim Kolbe (German Marshall Fund) argued in favor of an ambitious TTIP, explaining that a free trade agreement with the EU would boost U.S. exports to $3 billion annually and increase the purchasing power of American families. They also noted that TTIP provides an opportunity for the United States and Europe to set global trade rules and provide a new template for modern trade agreements given stalled talks at the World Trade Organization.

“We face a fundamental choice…you can either recognize that globalization is here and try to deal with it and manage it, and a strong TTIP can be part of it; or we can try and deny it and turn back the clock and live in the good old days when it was a lot simpler and you could make everything in America and you didn’t have to worry about supply chains.” Donnelly said. “We have to accept reality. Nostalgia is not a strategy for competitiveness and jobs in the 21st century. TTIP is a strategy for that, and that’s what we ought to do.”

Donnelly also urged Congress to pass Trade Promotion Authority and then for the Obama administration to negotiate an ambitious TTIP that would include Investor-State Dispute Settlement, because investment is a key component of global commerce.

Watch the debate on the McCain Institute website.

Business Prepares for OECD Health Ministerial on Next-Gen Health Reforms

Published on June 29, 2015
Helen Medina (USCIB)
Helen Medina (USCIB)

In the wake of the financial crisis, global health issues, such as the rising cost of medicines and the need for health reform, have risen to the top of the global agenda as policymakers struggle to insure the best quality healthcare at an affordable price. As the OECD gears up for its Health Ministerial in 2017, USCIB and the Business and Industry Advisory Committee (BIAC) to the OECD are providing industry input ahead of an expected high-level declaration that will guide governments’ future health priorities.

Helen Medina, USCIB’s vice president for product policy and innovation, attended BIAC and OECD Health Committee meetings in Paris this week to prepare formal comments for the OECD Workshop on High-Cost Medicines. She also attended a BIAC strategy session on June 22 to prepare for the 2017 OECD Health Ministerial, the theme of which is “The Next Generation of Health Reforms.” At the meeting attendees discussed their work on obesity and nutrition, to be presented at an upcoming meeting OECD Health Committee secretariat.

“The OECD’s work on healthcare issues often mirrors World Health Organization priorities,” Medina said. “Because there are limited opportunities for business to engage with the WHO, our engagement with the OECD is especially important as it allows industry to provide expertise and information into the policymaking process that otherwise would not be heard.”

Participants at the BIAC Health Committee meeting agreed that with healthcare issues at the forefront of the global agenda, it is important that the OECD’s work reflects a balanced and holistic approach to dealing with healthcare challenges as the organization gears up for the Health Ministerial in January 2017. The BIAC meeting produced alignment on industry messages on the various OECD projects which could impact industry sectors such as pharmaceuticals, alcohol, beverages, and food. In addition, a task force was created to prepare for the 2017 Health Ministerial.

OECD Workshop on High-Cost Medicines

To provide input for the upcoming 2017 Health Ministerial, the OECD Health Committee organized the “Workshop on High-Cost Medicines” on June 24 to encourage dialogue between governments, experts and the industry on access to effective medicines. Attendees talked about the need to maintain the financial sustainability of health systems while also steering innovation in the pharmaceutical industry. Given that OECD governments are increasingly challenged by the expanding costs of healthcare, the workshop explained how the pharmaceutical industry’s business models impact health sector spending. Industry experts discussed how governments can encourage the right innovation in pharmaceutical care to better respond to unmet medical needs.

Business delivered the following key messages to policymakers during the workshop:

  • Innovative medicines improve patients’ lives;
  • Assessing the value of medicines requires a holistic approach;
  • Innovation requires investment in health;
  • Innovation can deliver significant patient and societal value;
  • A “whole health system” approach is needed to maximize efficiencies;
  • Multi-sectoral partnerships can help address access and affordability.

 

IOE Report of the 2015 International Labor Conference

Published on June 26, 2015
Ronnie Goldberg speaks at the closing ceremony of the 2015 ILC.
Ronnie Goldberg speaks at the closing ceremony of the 2015 ILC.

The International Organization of Employers (IOE) published its report on the 104th session of the International Labor Conference, which gives a roundup of the technical discussion on labor protection. The conclusions from these discussions provide guidance to the International Labor Organization and its constituents.

A chapter on the work of the 2015 Committee on the Application of Standards (CAS) is also included, as is an outline of the examination by the Credentials Committee of three objections and two complaints brought by employers.

Ronnie Goldberg, USCIB’s senior counsel, presided at the International Labor Conference as the employers’ co-chair.

Download the report.

USCIB Cheers Senate Passage of Trade Promotion Authority

Published on June 25, 2015

capitol_scaffolding_loresNew York, N.Y., June 24, 2015 – The United States Council for International Business (USCIB) hailed the passage of Trade Promotion Authority (TPA) by the U.S. Senate today, as the bill cleared its final legislative hurdle before heading to the president’s desk. TPA will allow the United States to negotiate high-standard trade deals with its partners in Asia and the European Union.

“We thank the Senate for moving TPA forward and urge the president to sign this bill into law as soon as possible,” said USCIB President and CEO Peter Robinson. “The passage of TPA marks a renewed U.S. commitment to trade expansion, especially the Trans-Pacific Partnership, as it will pave the way for market-opening deals that remove barriers to our exports while bringing benefits to American workers and consumers.”

Robinson thanked the TPA bill’s supporters. “This was a difficult vote for many members of Congress, and we applaud the courage and steadfastness of TPA supporters,” he said. “The business community is extremely appreciative of all the hard work that went into this legislation.” He also thanked the Obama Administration, especially U.S. Trade Representative Michael Froman, for its work with Congress in getting TPA passed.

Robinson also encouraged Congress to finalize Trade Adjustment Assistance, a bill that provides aid to American workers who have been displaced by trade, and Customs Reauthorization, which will help streamline customs procedures while securing America’s borders.

“We urge Congress and the Administration to move expeditiously on all these elements of the U.S. trade agenda,” Robinson said. “The business community is united behind TPA and we intend to keep the momentum going until it and other trade bills become law.”

USCIB is a founding member of the Trade Benefits America Coalition, an organization of American business associations 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

A Turning Point for International Climate Policy: ICC North American Regional Consultation

Published on June 25, 2015
Bachus_Craft_Norine
L-R: James Bacchus (ICC & Greenberg Traurig), William Craft (U.S. Department of State) and Norine Kennedy (USCIB)

USCIB convened the North American Business Consultation  on Climate Change on June 23 in Washington, D.C.; this session, organized with the International Chamber of Commerce, the Canadian Chamber of Commerce and the International Emissions Trading Association, highlighted U.S. and Canadian business priorities for the U.N. climate agreement to be finalized in Paris this December.

In his opening comments to the day-long conference, with over 80 participants including government officials, business leaders, United Nations delegates, and academics, USCIB’s President and CEO, Peter Robinson stated: “USCIB has followed climate change for 20 plus years, and while the issues have evolved, become broader, been through ups and downs in the U.N. negotiations, it has remained a priority for member companies.  And en route to Paris, we see it evolving again, to include a strong element of corporate citizenship and social equity.”

2015 is a defining year for international climate change cooperation when governments will reach a new, long-term climate agreement on greenhouse gas reductions while pursuing global adaptation and resilience to the effects of climate change. Delivering on the UN’s far-reaching commitments will rely on business investment, innovation, new markets and engagement. The resulting economic and energy transformation will impact the business community across every sector, offering opportunities and posing challenges.

Ann Condon (GE), chair of USCIB’s Environment Committee, explained that climate, good governance and job creation are all issues that must be addressed together, and that the bigger picture of sustainability will rely on integration of the UN Post 2015 Development Agenda and the U.N. climate framework. Given the dynamic forces at work for businesses in the current global economy, Condon stressed the importance pursuing economic growth de-linked from carbon emissions.

The North American Public Private Dialogue is the second in a series of consultations organized by ICC to mobilize the voice of business ahead of the 21st UN Conference of the Parties (COP) in Paris in December, where member governments will finalize the international climate agreement. The inaugural dialogue took place in Mexico on April 15, to be followed by meetings in Asia later this year.

The Road to COP21 in Paris: Government, Business and NGO Perspectives

Florini
Karen Florini, deputy special envoy, climate change, U.S. Department of State

The event’s morning speakers presented U.S. and Canadian government positions for the Paris agreement, and talked about how the role of business could be reflected in Paris outcomes.  A particular focus was on national emission reduction pledges, known as “Intended Nationally Determined Contribution” (INDCs) from the U.S. and Canada. USCIB has advocated involving business in the preparation and analysis of INDCs.

Karen Florini of the U.S. Department of State explained that the United States believes there should be a clear role for non-state actors in the climate agreement, and that Paris 2015 represents an opportunity for nations to cooperate and pursue a low carbon path to prosperity.

IPR protection is indispensable for technological progress, and Florini indicated that the UN climate agreement was not the right vehicle to address IP issues.  She urged all stakeholders, including business, to show support for COP21 and the agreement, because inaction on climate change is not an option.

Other participants echoed Florini’s comments and said that the Paris 2015 agreement is not a silver bullet that will solve climate change, but it will set the stage for further international commitment to address a global problem.

In addition to Florini, other speakers included Lynn Monastesse, Environment Canada, Patricia Beneke, Executive Director of the U.N. Environment Programme’s North American Regional Office, and Helen Mountford, Senior Economist of the World Resources Institute.  On the U.S. INDC, Christo Artusio, Director of the Office of Global Change, the U.S. Department of State explained that the U.S. communicated its pledge and other “up front” information to facilitate the clarity, transparency, and understanding of U.S. climate programs as part of its commitments under the UNFCCC. He said it is important for all countries to be as transparent as possible about their climate pledges. Finally, Artusio noted that the U.S. INDC does not envision the use of international market mechanisms at this time.

Panellists discussed the role of business in the UNFCCC, business experiences with market based approaches in North America and the role of private sector technology innovation and deployment.  Main points included:

  • the importance of government engaging with business across the entire horizon of UNFCCC policy and technical deliberation, including on the design, assessment and implementation of  INDCs.
  • Elisabeth Best of Qualcomm talked about the many uses of innovation for climate change, not just via energy technologies but in IT applications, which then support smart grids, energy efficiency and other related efforts.
  • The experience of carbon markets at the state and provincial level in North America, along with voluntary efforts, have delivered reductions, along with experiences with how and where such market-based approaches make the best policy option.  Katie Sullivan, IETA, placed strong emphasis on the need to maintain and strengthen carbon markets as a means for countries to meet their climate policy commitments, and give countries the option to link their markets where it made sense to do so.

Leonardo Martinez-Diaz, the U.S Department of Treasury, spoke about recent activities of the Green Climate Fund (GCF), intended to assist in mobilizing finance and investment for developing countries under the UNFCCC.  Mr Martinz-Diaz indicated that the GCF is “open for business,” with a strong interest in reducing risk and working with business to mobilize financial resources to address mitigation and adaptation needs in the international community.

Fighting Climate Change with Trade

In addition to reviewing national and international climate policy from government and private sector perspectives, the meeting considered the role that other economic agreements and institutions will play in broadening and supporting climate policy and implementation.

ICC and USCIB Chairman Terry McGraw introduced William Craft, Deputy Assistant Secretary for Trade Policy and Programs in the Bureau of Economic and Business Affairs of the U.S. Department of State, who discussed the importance of using the U.S. trade agenda to help support ambitious climate policy and raise environmental standards.  McGraw noted the timeliness of the discussion given recent developments on Trade Promotion Authority (TPA), also known as “Fast Track.”

Craft noted that modern trade deals will continue to include strong environmental standards. He said that the United States is taking the lead in pushing forward the World Trade Organization’s Environmental Goods Agreement (EGA), which will reduce and remove tariffs on green products, improving global access to technologies that will help reduce greenhouse gas emissions.  The EGA will be a win-win for U.S. exporters and the global commons, Craft said.

He concluded by explaining that the intersection of trade and the environment lies at the heart of U.S. bilateral negotiations with China and Brazil, and that it is possible to secure trade deals with strong environmental standards while also creating economic  opportunities for business.

James Bacchus, Greenberg Traurig and Chair of ICC’s Trade and Investment Commission, explained the challenges of addressing potential conflicts between trade rules and climate protection, including with regard to “like products.”  He indicated that current trade rules would have to adapt to the diverse national approaches to climate policy that will arise from an INDC-based agreement to be finalized in Paris.

In her concluding remarks, USCIB’s Norine Kennedy stressed that all markets, including carbon markets, are important and necessary for a climate-friendly transformation of the global economy. “Governments must pledge to keep markets open so that cleaner technologies, energy and solutions can spread efficiently and profitably,” Kennedy said. Governments must also protect intellectual property rights, because the innovation needed for a climate-friendly transformation won’t occur if IPR protection is  compromised in an international climate agreement.

Also on June 24, ICC unveiled the 2015 updated Business Charter for Sustainable Development, which sets out a framework to enable companies to place sustainability at the heart of their operations – from staff recruitment to the development of new products and services.

USCIB and its global network have been  joined USCIB in arguing  for recognized consultative business engagement in the UN climate talks. Earlier last month ICC Secretary General John Danilovich wrote a letter to the editor of the Financial Times explaining that a wide range of policy and market approaches will be needed to scale up the pace of  reducing greenhouse gas emissions; there is no single bullet, and each country will tailor its “package” of actions to suit its environment and economic circumstances. And in another letter to the editor of the New York Times, USCIB President and CEO Peter Robinson argues that countries should offer trade incentives rather than punitive tariffs to reduce carbon emissions and spur the deployment and use of greener energy technologies.

View photos of the North American Public-Private Dialogue on Climate Change (Flickr)

View speaker presentations from the dialogue

In CNBC Interview, USCIB’s Donnelly Assesses Prospects for U.S.-China Investment Treaty

Published on June 24, 2015

Shaun_CNBCIn an interview on CNBC, USCIB Vice President Shaun Donnelly talked about the U.S. business community’s perspective on the U.S.-China Strategic and Economic Dialogue taking place this week. He noted that U.S. business is looking forward to a bilateral investment treaty between both countries, and he discussed cyber security and government procurement.

Watch the interview.