Policy Areas Archives

EU Reports on Investor Consultation Results in U.S.-EU Trade Agreement

Published on January 22, 2015

4937_image001On Tuesday, January 13, the EU Commission released its final report on the online public consultation on investment protection and investor-state dispute settlement (ISDS) in the Trans-Atlantic Trade and Investment Partnership (TTIP). In response, USCIB issued a press release noting the importance of a strong investment chapter including ISDS in the agreement. USCIB also played a leading role in pulling together a group of 15 major business groups on both sides of the Atlantic to issue a joint statement that same day.

The commission launched the consultation in response to public concerns about whether the EU’s proposed approach for TTIP would achieve the right balance between protecting investors and safeguarding the EU’s ability to regulate in the public interest.

The commission – which issued a consultation questionnaire about 12 issues concerning investment protection and ISDS in TTIP – had received a total of nearly 150,000 replies by the July 13 deadline, with the vast majority (around 145,000, or 97%) submitted through various online platforms with pre-defined answers. Most replies were skeptical of investor protections and ISDS.  In addition to these mass-produced responses, there were also submissions from more than 3,000 individual citizens, and about 450 organizations, including USCIB.

According to the report, the commission received responses in three broad categories: statements indicating opposition or concerns to TTIP in general, concerns or opposition with regard to investment protection and ISDS in TTIP, and specific views in relation to the various aspects presented under each question, often accompanied by concrete suggestions for the way forward.

“The commission has not made a clear recommendation on how to move ahead with the negotiations,” said Eva Hampl, USCIB’s Director for Investment, Trade and Financial Services. “That suggests the volume of responses opposing investor protections in TTIP has not gone unnoticed.”

Instead of prescribing a concrete way forward, the commission merely noted four areas where they urge further improvements to be explored:

  • the protection of the right to regulate
  • the establishment and functioning of arbitral tribunals
  • the relationship between domestic judicial systems and ISDS
  • the review of ISDS decisions through an appellate mechanism

“Though not unexpected, the Commission report confirms that TTIP, particularly for investment and ISDS, will continue to be an uphill battle,” said Hampl.

USCIB submitted comments in support of an ambitious investment chapter including strong investor protection and ISDS representing the views of the U.S. business community.  USCIB also signed a joint statement with other U.S. and EU business associations upon the release of the report.

A high standard investment chapter including ISDS is crucial to a successful TTIP, and both the EU and the U.S. stand to gain significantly from a concluded agreement.

USCIB Applauds President’s Trade Agenda in SOTU

Published on January 20, 2015

4935_image001New York, N.Y., January 20, 2015 – The United States Council for International Business (USCIB) welcomed President Obama’s commitment to a pro-trade agenda and specifically to Trade Promotion Authority (TPA) in his State of the Union address to Congress this evening. USCIB said its member companies look forward to working with the Administration and the Congress on a bipartisan effort to advance America’s national interests in this key area.

TPA will give the president the necessary authority to negotiate strong U.S. trade agreements, making it easier for the United States to close deals to benefit American workers and companies, and then move trade agreements to Congress for their review and approval.

“Trade is an important tax-free engine for U.S. economic growth and jobs,” said USCIB President and CEO Peter Robinson. “TPA will provide a boost to U.S.-led efforts to open international markets and eliminate trade barriers.”

Robinson continued: “Ambassador Michael Froman and his skilled team of negotiators should not have to negotiate with one hand tied behind their back. The business community is encouraged that the president has committed to move forward on an aggressive trade agenda that will enhance America’s competitiveness, economic growth, and jobs.”

Last week USCIB sent a letter to President Obama urging him to highlight his administration’s trade agenda and to call for passage of TPA. The letter emphasized that a strong, coordinated push from the administration, Congress and the business community is needed to get TPA over the finish line.

USCIB also praised the work being done by the United States Trade Representative Ambassador Froman, leading the charge on TPA and the trade negotiations under way including the Trans-Pacific Partnership with Pacific-Rim countries, the Trans-Atlantic Trade and Investment Partnership with the European Union and the Trade in Services Agreement.

A strong advocate for international trade and investment at home and around the world, USCIB is a member of the Trade Benefits America Coalition steering committee, an organization of American companies and business associations dedicated to getting the facts out about the benefits of TPA and U.S. trade agreements. International trade already supports over 38 million American jobs and TPA can help raise that number even higher.

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

Contact:

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

USCIB on the TTIP Front Lines

Published on January 20, 2015
4936_image002
USCIB’s Shaun Donnelly addresses a panel with the Styrian regional parliament in Graz, Austria.

Passage of the Trans-Atlantic Trade and Investment Partnership (TTIP), a free trade agreement between the United States and the European Union, would stimulate economic growth and create jobs on both sides of the Atlantic. The agreement has been criticized over the past several months by anti-trade groups, especially over investor protections such as investor-state dispute settlement (ISDS).

To counter this negative messaging, Shaun Donnelly, USCIB’s vice president for investment and financial services, has been traveling around Europe as an American speaker for TTIP on behalf of U.S. embassies, spreading the word about the benefits of a strong, comprehensive, high-standard TTIP for both the United States and the European Union.

Last week, Donnelly visited Austria and Slovenia and participated in speaking engagements, meetings and interviews with government officials, business leaders, journalists and student groups. Anti-TTIP groups refused to speak with Donnelly.

“Austria and Slovenia are among the more ýTTIP-skeptical of EU member states and anti-ISDS fever runs high,” said Donnelly. “Our U.S. embassies in each capital are working hard to get our side of the story out and I was glad to lend a hand with some key audiences.”

USCIB is working with its member companies to mobilize support for TTIP in Europe and is seeking opportunities to promote and explain the business case for TTIP.

EU Publishes Consultation Report on Investment Protections in U.S.-EU Trade Agreement

Published on January 13, 2015

4931_image002New York, N.Y., January 13, 2015 – The United States Council for International Business (USCIB) looks forward to a resumption of negotiations on investor protections in the Transatlantic Trade and Investment Partnership (TTIP) following today’s publication of the EU’s final report on the online public consultation on investment protection and investor-state dispute settlement (ISDS) in the U.S.-EU trade agreement. TTIP negotiations were launched in July 2013, but negotiations on the agreement’s investment chapter have been stalled since early 2014.

As an active advocate for strong investment protections, USCIB hopes that with the publication of this report, productive negotiations on an investment chapter in TTIP can resume.

Following a preliminary report providing a statistical overview of responses, this final report provides the opportunity for the EU to resume negotiation of an ambitious investment chapter in TTIP, armed with a wide variety of stakeholder input as guidance. Nearly 150,000 replies to the consultation included specific views on the thirteen questions posed, as well as statements indicating opposition or concern to investment protection, ISDS and TTIP in general. Without providing specific guidance on the contents of an investment chapter in TTIP, the Commission responded to the various views by outlining four areas in which to explore further improvements.

“Foreign direct investment (FDI) is a cornerstone of economic growth and jobs, and an open investment climate requires policies and agreements that are transparent and non-discriminatory,” said USCIB Director for Investment, Trade and Financial Services Eva Hampl.  “ISDS is an essential component of a predictable and fair system that protects investors against the potentially arbitrary actions of host states. It de-politicizes potential disputes by providing a neutral mechanism of legal dispute resolution.”

The Commission launched the consultation in response to public concerns about whether the EU’s proposed approach for TTIP would achieve the right balance between protecting investors and safeguarding the EU’s right and ability to regulate in the public interest.  USCIB submitted comments in support of an ambitious investment chapter including strong investor protection and ISDS representing the views of the U.S. business community.  USCIB also signed a joint statement with other U.S. and EU business associations upon the release of the report.

A high standard investment chapter including ISDS is crucial to a successful TTIP, and both the EU and the U.S. stand to gain significantly from a concluded agreement.

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

 

ICC and WCO Secretaries General Meet to Talk Business and Customs

Published on January 13, 2015
L-R: John Danilovich (ICC), Kunio Mikuriya (WCO) and Norman Shenk (UPS).
L-R: John Danilovich (ICC), Kunio Mikuriya (WCO) and Norman Shenk (UPS).

International Chamber of Commerce (ICC) Secretary General John Danilovich met with World Customs Organization (WCO) Secretary General Kunio Mikuriya at WCO Headquarters in Brussels earlier this week to discuss ways to strengthen the relationship between the world business community and the WCO to facilitate cross-border trade.

Joined by Norman Shenk, chair of the ICC Commission on Customs and Trade Facilitation and UPS vice president of global customs policy and public affairs, Danilovich highlighted the role of the ICC World Chambers Federation in co-administering the ATA Carnet System and cooperating with the WCO in the area of Certificates of Origin.

ICC also supports the WCO with the Business Action to Stop Counterfeiting and Piracy (BASCAP) initiative to stop counterfeited goods at borders and prevent free trade zones from becoming hotspots for illicit trade and organized crime groups.

Discussions included specific challenges that small- and medium-sized enterprises (SMEs) encounter when trading across borders, customs valuation ceilings for goods known as de minimis, rules of origin and the increasing importance of e-commerce and global value chains.

Thanking Mikuriya for making the customs-business cooperation a priority, Danilovich also reaffirmed ICC’s ongoing support for the WCO’s work on trade facilitation and in particular for the implementation of the World Trade Organization (WTO) Trade Facilitation Agreement (TFA) that aims to enhance trade flows.

“Given that the agreement deals almost entirely with Customs-related topics, trade ministries, Customs and business must all be involved at country-level to ensure the TFA’s successful implementation,” Danilovich said.

Mikuriya has emphasized on many occasions that Customs and business are natural allies in trade facilitation. Both he and Danilovich will speak at the upcoming Customs and Trade Facilitation Symposium, hosted by ICC and USCIB in Miami from February 22 to 24.

USCIB Letter to President Obama on U.S. Trade Agenda

Published on January 13, 2015

Ahead of President Obama’s State of the Union address, USCIB sent a letter to the president urging him to highlight the U.S trade agenda and call for passage of Trade Promotion Authority. The letter emphasizes that a strong push from the Administration, Congress and the business community is needed to get TPA over the finish line.

“This year will present opportunities for the U.S. to conclude trade and investment agreements that will ensure that the United States grows its economy, creates jobs and opens markets to U.S. goods and services reaching customers around the world,” wrote USCIB President and CEO Peter Robinson in the letter to President Obama. “TPA would provide a critical boost to achieving these shared goals among U.S. workers, companies and citizens.”

In addition, the Trade Benefits America Coalition, of which USCIB is a member, also sent a letter to House and Senate leadership urging Congress to pass bipartisan legislation to modernize TPA early this year.

The Trade Benefits America Coalition includes a wide range of associations and companies that are 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 TPA legislation is important to help ensure America continues to benefit from trade.

USCIB Looks Ahead to Int’l Conference on Chemicals Management

Published on January 10, 2015
Helen Medina (USCIB) speaks at the second meeting of the Open-Ended Working Group of ICCM in Geneva on December 16. (Credit: International Institute for Sustainable Development)
Helen Medina (USCIB) speaks at the second meeting of the Open-Ended Working Group of ICCM in Geneva on December 16. (Credit: International Institute for Sustainable Development)

Central to the modern economy, chemicals are traded widely across borders and are used in the production of thousands of different products, from pharmaceuticals to computer microchips.

The International Conference on Chemicals Management (ICCM) is an inter-governmental ministerial that convenes UN member delegates and stakeholders for discussions on chemicals management. Adopted by the International Conference on Chemicals Management (ICCM) in 2006, the Strategic Approach to International Chemicals Management (SAICM) is a policy framework aimed to foster the safe and sound management of chemicals.

In December, Helen Medina, USCIB’s senior director for product policy and innovation, attended the Second Open-Ended Working Group of ICCM in Geneva to represent American business interests in the lead-up to the next ICCM ministerial, scheduled to take place in late September 2015.

Approximately 335 delegates attended the working group, representing 105 governments, five UN agencies, 12 intergovernmental organizations, and 38 non-governmental and industry organizations. At the meeting USCIB shared its concerns about SAICM’s Chemicals in Products program (CiP), a voluntary initiative designed to give guidance on how to share relevant information on chemicals in products along the supply chain and throughout their life cycle. Industry representatives argued that elements of the CiP draft text were too prescriptive, and that efforts should be made to make the document more attractive to business.

USCIB will continue to monitor work on SAICM and provide regular updates to members. Medina will attend the fourth International Conference on Chemicals Management in September 2015.

What Has Changed in the Climate Change Talks?

Published on January 10, 2015

If a global climate agreement doesn’t work for business, it won’t work.

USCIB President and CEO Peter Robinson
USCIB President and CEO Peter Robinson

Following another finish in “overtime,” the annual UN climate change conference wrapped up in Lima, Peru on December 13. This was the 20th Conference of the Parties to the UN Framework Convention on Climate Change, or UNFCCC, and one could be forgiven for a sense of déjà vu. After all, we have become accustomed to the inevitable cliff-hanger ending of these annual “COP” meetings, just as we have come to depend on a last-minute compromise.

The Lima meeting’s purpose was to set the stage for the home stretch of negotiations of a long term inclusive climate agreement to be finalized next December in Paris. Yet despite a modest agenda, it proved extremely difficult for member states to agree to even a brief five page outcome document. In my view, this means we should not be too complacent as we look ahead to 2015. Much has changed since the international community negotiated the Kyoto Protocol in 1997, and business has a lot on the line.

Negotiators did make progress in framing commitments to lower greenhouse gas emissions and fund developing countries’ climate efforts. I attended alongside USCIB’s Norine Kennedy and many dozens of USCIB member executives and representatives of our global business network. Our colleagues from the International Chamber of Commerce played an important coordinating role, facilitating private-sector engagement across the board in Lima.

This was my fourth COP, and a major difference I noticed from prior meetings was while governments still face gaps and differences in opinion, positions put forward by business groups are converging in three key areas that are – in USCIB’s view – deal-breakers for the future of the agreement.

Commitments and Transparency

The climate agreement to be signed in Paris must provide a clear framework for international cooperative action, committing all large emitting economies to the measurement, monitoring and reporting of nationally pledged activities to control and reduce greenhouse gas emissions, such as those announced recently by the United States and China.

UN negotiators needed to reach agreement on credible measuring, reporting and verification for all national commitments to ensure transparency and assess progress going forward. In Lima, China and a number of other, largely developing, countries resisted measurement and reporting tools to ensure that countries are living up to their commitments.

Financing and Investment

We need to leverage private investment if we are to have any hope of marshalling the $100 billion in annual financing that UNFCCC parties say is required to ensure adequate resources for climate mitigation and adaptation. Yet governments seem stuck in the same old “aid, not trade” mindset. The UN’s Green Climate Fund, designed to finance developing countries’ efforts to combat climate change, did reach its initial $10 billion capitalization target. But going from $10 billion to $100 billion depends on the mobilization of private investment and innovation.

Negotiators must now work toward a 2015 Paris agreement with measures that enable markets and foster business investment – as well as government aid – aimed at reducing greenhouse gas emissions and adjusting to climate impacts. The UNFCCC should promote innovation through financially efficient and well-targeted support mechanisms to scale up new technologies and strong, protection of intellectual property.

Private-Sector Engagement

If a global climate agreement doesn’t work for business, it won’t work. This was the message my colleagues and I delivered repeatedly in Lima. With so much riding on economy-wide transformational change that will rely on the private sector, the Paris outcomes must anchor the role of business in the UN climate agreement through actions to reduce emissions, pursue efficiency, transform energy systems and build more resilient infrastructure.

We made some progress on this front. Our well-attended BizMEF Lima Dialogue (see photo) won praise for engaging with key governments and other stakeholders in support of securing the private-sector commitment and expertise that can drive meaningful change. Given the wide impact that a UN agreement will have on markets, regulations and national competitiveness, an agreed and recognized structure is needed to provide business expertise and support.

UN negotiators should make space for a business consultative channel as a resource of technical and practical expertise for governments and the UNFCCC process.

So where does this leave us, with one year to go before the big Paris climate summit? The challenge of climate change is real on economic, environmental and social fronts, with opportunities for business in new markets and for the global community to enable climate friendly development and energy access.

Negotiators have a lot of work to do between now and next December. Have they bitten off more than they can chew? I think not, but getting this agreement past the finish line will clearly require pragmatic problem-solving and engagement with the private sector. Business innovates and invests in ways that the public sector can’t, and tapping into that innovation could well be the difference between success and the same old same old in Paris next year.

Peter Robinson’s bio and contact information

Other recent postings from Peter Robinson:

What’s the Rush on Global Tax Reform? (Summer 2014)

Setting the Rules of the Road in Cross-Border Commerce (Spring 2014)

It’s Time to Clap with Both Hands on FDI (Winter 2013-2014)

Making Sure the Business Voice Is Heard in International Agencies (Fall 2013)

Full House ICC Conference Elucidates New EU Rules on Genetic Resources

Published on January 8, 2015

4926_image002The International Chamber of Commerce (ICC) hosted a conference in Paris on November 24 and 25 which shed light on the new European Union (EU) regulation regarding Access and Benefit-sharing (ABS). ABS refers to the way in which genetic resources such as plant and animal products may be legally accessed, and how users and providers reach agreement on the fair sharing of the benefits that arise from the use of these products.

The United Nations Convention on Biological Diversity concluded the Nagoya Protocol in 2010, which provides an international framework for establishing national regimes on ABS.

Featuring a panel of high-level speakers representing government agencies and the private sector, ICC’s sold-out event brought together executives and policymakers to discuss how the new regulation affects their daily operations. The two-day conference convened over 120 participants from 16 countries representing a wide variety of sectors including cosmetics, pharmaceuticals, biotechnology, plant and animal breeding, collections and museums, as well as government representatives.

“It is very important to get to know better the new EU regulation as it may affect any professional involved in the manufacturing, development and distribution of genetic resources,” said Alicja Kozlowska, ABS policy officer of the European Commission.“The conference was a unique opportunity to throw some light on the scope of the obligations flowing from the regulation.”

The first day of the event featured an overview of the new EU ABS regulation covering topics such as scope and due diligence requirements under national and international regimes.The second day featured a program of technical workshops on tools to facilitate compliance, as well as commercialization and transactions with customers and licensees inside and outside the EU. Afternoon sessions highlighted industry best practices with panelists who shared their best practices.

ICC played an active role coordinating business participation in the Nagoya Protocol negotiations and continues to coordinate business input in the process of national implementation of the protocol.

 

USCIB, NYU Host Dialogue About U.S. Plan on Responsible Business Conduct

Published on December 22, 2014
Ambassador Elizabeth Cousens, U.S. Representative to the UN Economic and Social Council, speaking at the NAP dialogue on December 15 at NYU Stern’s campus.
Ambassador Elizabeth Cousens, U.S. Representative to the UN Economic and Social Council, speaking at the NAP dialogue on December 15 at NYU Stern’s campus.

In September, President Obama said the administration would develop a U.S. National Action Plan (NAP) to promote responsible business conduct abroad consistent with the United Nations Guiding Principles on Business and Human Rights.

As part of the consultative process leading up to the development of the action plan, U.S. officials will attend a series of open dialogues hosted by independent organizations where stakeholders can provide input on the NAP process and content.

USCIB and New York University’s Stern School of Business hosted the first event in this series on December 15 on the NYU campus.

Ambassador Elizabeth Cousens, U.S. Representative to the UN Economic and Social Council, speaking at the NAP dialogue on December 15 at NYU Stern’s campus.

U.S. government representatives from the Department of Labor, Department of State and the U.S. Mission to the United Nations came together at the open dialogue to gather input from the private sector and other stakeholders that promote respect for human rights internationally.

“There is in fact a huge new appreciation for the role of the private sector and business generally,” said Ambassador Elizabeth Cousens, U.S. Representative to the UN Economic and Social Council. “And what business can do, together with communities and civil society, to contribute to development and human rights.”

The dialogue began with a plenary session, where Ariel Meyerstein, USCIB’s vice president for labor affairs, corporate responsibility and corporate governance, moderated a panel with representatives from the State and Labor Departments on the development of the U.S. National Action Plan. The plenary was followed by small workshop discussions on a range of topics related to responsible business conduct.

The NAP will aim to unify government efforts in promoting best practices in the areas of human rights, labor rights, corruption and transparency abroad, with clear and predictable guidelines.

More about the National Action Plan can be found in the White House’s fact sheet and on the Business and Human Rights Resource Center website.