Policy Areas Archives

New UN High Level Political Forum to Focus on Sustainable Development through Head of State Meetings

Published on July 24, 2013

What is the UN High Level Political Forum (HLPF)?

The 2012 United Nations Conference on Sustainable Development (Rio+20) agreed to establish the High Level Political Forum (HLPF), a new UN body to replace the Commission on Sustainable Development. In June 2013, Member States concluded several months of political negotiations to define the “Format and Organizational Aspects of the high-level political forum.”  This new body is expected to play a central role in framing the UN’s Post-2015 Development Agenda.

The new high-level political forum, consistent with its intergovernmental universal character, will:

  • Provide political leadership, guidance and recommendations for sustainable development;
  • Follow up on implementation of all UN activities related to sustainable development, including the SDGs;
  • Enhance the integration of the three dimensions of sustainable development (economic, social and environmental);
  • Have a focused, dynamic and action-oriented agenda, ensuring the appropriate consideration of new and emerging sustainable development challenges

When will the HLPF meet?

The date for its first meeting is September 24, 2013 during the opening of the 68th Session of the UN General Assembly.  The first meeting will be an inaugural event and substantive sessions will be scheduled later in the year.  The HLPF will conveneannually at the ministerial level under the auspices of the UN Economic and Social Council (ECOSOC) and it will, every four years, bring together heads of State and Government, under the auspices of the UN General Assembly, to provide political momentum for sustainable development.

How to participate and the role of business:

USCIB, working with the ICC and other business groups, has represented U.S. business in UN sustainability meetings since 1992. The creation of the HLPF offers USCIB an opportunity to provide U.S. business views on economic, social and environmental dimensions of sustainability, and to offer practical private sector experiences relating to the enabling conditions needed for investment, innovation and job creation.

The HLPF will be open to all “Major Groups” and “other stakeholders,” e.g. education and academic entities, volunteer groups, etc., who will be able to:

  • Attend all official meetings of the forum;
  • Have access to all official information and documents;
  • Intervene in official meetings, submit documents and present written and oral contributions, to make recommendations, and to organize side-events and roundtables

Business and industry organizations have submitted recommendations for a dedicated and recognized business channel to the HLPF.

Staff contacts: Norine Kennedy and Adam Greene

Business Weighs in on Job Creation at G20 Labor Ministerial

Published on July 23, 2013

On July 18, representatives of the Business and Industry Advisory Committee (BIAC) to the OECD and the International Organization of Employers (IOE) met with G20 labor ministers in Moscow, emphasizing the need for open and competitive markets to stimulate growth and job creation through policies that enable private enterprise.

In a joint statement, BIAC and IOE focused on the importance of a qualified and mobile workforce, good governance, and reliable policies for companies to invest and generate employment.

USCIB Senior Counsel Ronnie Goldberg, who is an IOE regional vice president and chairs BIAC’s labor and employment committee, joined the business delegation, which was led by B20 Chair Alexander Shokhin, president of the Russian Union of Industrialists and Entrepreneurs.

The business statement urged governments to commit to policies conducive to private sector-led growth and job creation, improve policy consistency between governments and increase business confidence to invest. It also said that properly implementing comprehensive and ambitious national structural reforms would promote job creation and economic development. The business groups also voiced support for implementing non-distortive taxation at levels that encourage enterprise and investment, reducing high non-wage labor costs and investing in human capital to enable labor market flexibility, and promoting innovation and entrepreneurship, especially youth entrepreneurship.

Looking at specific measures to spur employment, especially youth employment, BIAC and IOE stressed the importance of enhancing employability through quality education, training, workplace learning and incentives for all to work. Business also supports the IOE/BIAC Global Apprenticeships Alliance, a global company network aimed at broadening the scope and number of apprenticeships in order to address youth employability, as well as joint initiatives with labor to cultivate youth employment.

Opening the gathering, Maxim Topilin, Russia’s minister of labor and social protection, expressed appreciation for the participation of the social partners in the G20. “These consultations are very useful and allow us to see a different perspective on the issues that we address,” he said. “The social partners’ ideas and recommendations based on their expertise facilitate the G20 decision-making process with respect to such key issues as employment, labor relations development and social protection.”

More on USCIB’s Labor & Employment Committee

Business Pushes for Maximum Liberalization in TPP Talks

Published on July 23, 2013

On July 23, concurrent with the 18th Round of Trans-Pacific Partnership (TPP) negotiations in Malaysia, USCIB co-signed a letter with 47 other business associations to U.S. Trade Representative Michael Froman on U.S. priorities in the talks. The letter emphasizes the need for “further trade liberalization – at home as well as abroad” across all sectors, including the few sectors of the U.S. economy that receive significantly more protection from import competition than most other sectors. The business associations have advocated for no exclusion of specific sectors in minimizing government protections or preferences that distort the market in order to increase competition and facilitate a more adaptable economy in the face of challenging market dynamics. They wrote that maximum liberalization of protected sectors will benefit our economy, our workers and our consumers in the long-term by advancing U.S. competitiveness in the globalized economy of the 21st century.

Staff contact: Rob Mulligan

More on USCIB’s Trade and Investment Committee

Global Industry Letter to China Urges for ITA Expansion

Published on July 23, 2013

USCIB, along with numerous business associations and companies from around the world, signed a letter to Chinese Vice Premier Wang Yang urging for expanded product coverage of the Information Technology Agreement (ITA).

What would have been the final round of ITA expansion talks were suspended in Geneva the week before due to China’s “disproportionately large product sensitivities list” that was “more than twice as long as any other country’s sensitivities list and included a request for the removal of roughly 100 product lines from the negotiating table,” the letter remarked. This has become the main obstacle in obtaining an ambitious ITA expansion outcome this year, which would, by one estimate, add $190 billion to global GDP annually.

The letter states that “China stands to be one of the largest beneficiaries of an expanded ITA” because of its considerable presence in the global tech industry, boosting its economy and innovation capacity. The letter thus urges China to significantly reduce the size of its sensitivities list so that ITA talks can reach a conclusion and further increase economic growth, competitiveness, and innovation around the world.

Click here to read the global industry statement supporting ITA expansion, signed by 81 associations from 31 economies and regions around the world.

Staff contacts: Rob Mulligan and Justine Badimon

More on USCIB’s Trade and Investment Committee

More on USCIB’s China Committee

US and China Agree to Action on Climate Change

Published on July 22, 2013

smogAt this month’s U.S.-China Strategic & Economic Dialogue (S&ED) in Washington, D.C., the two countries agreed to undertake a number of steps to address climate change. This followed an announcement that the two nations will begin formal talks on a high-standard bilateral investment treaty (click here for our earlier report).

In May, the USCIB China Environment Task Force met with the EPA’s Steve Wolfson to discuss coordination and capacity-building between China and the U.S. on climate change, including Secretary of State Kerry’s newly created U.S.-China Climate Change Working Group.

On July 10, the working group presented its report on bilateral cooperation between the two countries. This non-binding climate plan lays out five new action initiatives with the goal of reducing greenhouse gas emissions and air pollution by tackling the largest sources of emissions in both countries, focusing on: vehicle emissions; smart grids; carbon capture, utilization and storage; greenhouse gas data collection and management; and building and industry energy efficiency.

In a fact sheet, the U.S. Department of State released the following details of specific projects and commitments.

  1. Reducing emissions from heavy-duty and other vehicles: Heavy-duty vehicles are the fastest growing source of greenhouse gas emissions from transportation in the U.S. and account for more than half of transportation fuel consumed in China. Light-duty vehicles also contribute significantly to greenhouse gas emissions, fuel use and air pollution. Efforts under this initiative will include advancing comprehensive policies to reduce CO2 and black carbon emissions.
  2. Increasing carbon capture, utilization, and storage (CCUS):
    The U.S. and China account for more than 40 percent of global coal consumption. Emissions from coal combustion in the electric power and industrial sectors can be significantly reduced through CCUS. China and the U.S. will cooperate to overcome barriers by implementing several large-scale, integrated CCUS projects in both countries, which will engage companies in both countries and allow for enhanced trade and commerce.
  3. Increasing energy efficiency in buildings, industry and transport:
    The U.S. and China recognize that there is significant scope for reducing emissions and costs through comprehensive efforts to improve energy efficiency. Both sides commit to intensify their efforts, initially focusing on promoting the energy efficiency of buildings, which account for over 30 percent of energy use in both countries.
  4. Improving greenhouse gas data collection and management:
    Both countries place a high priority on comprehensive, accurate reporting of economy-wide greenhouse gas emissions data to track progress in reducing emissions and to develop and implement mitigation policies. The U.S. will work with China to build capacity for collection and management of greenhouse gas emissions data.
  5. Promoting smart grids: The power sector accounts for over one third of U.S. and Chinese carbon emissions. To reduce greenhouse gas emissions from the power sector and put in place a resilient, low-carbon power grid, both countries will collaborate on developing modern, “smart” grid systems, deploying renewable and clean energy, and improving demand management.

In their joint report, the two parties made clear that this just the beginning of a new phase in U.S.-China cooperation on climate change issues, where the Climate Change Working Group is designed to serve as the new leader in this critical bilateral relationship. Working closely with private sector and non-governmental stakeholders, the working group will develop implementation plans for the following initiatives by October 2013, with the goal of continuing to find new ways to expand cooperation on climate and clean energy issues.

Staff contacts: Norine Kennedy and Justine Badimon

More on USCIB’s Environment Committee

More on USCIB’s China Committee

SMEs Face Significant Financing Gap

Published on July 22, 2013

Speaking at the World Trade Organization’s annual “aid-for-trade” review earlier this month, a representative of the International Chamber of Commerce (ICC) made a plea for added financing for cross-border trade.

ICC Senior Policy Manager Thierry Senechal said that trade finance intermediation is crucial today as it provides real-time risk mitigation, while improving liquidity and cash flow of the trading parties. It also gives localized small- and medium-sized enterprises much-needed access to credit and working capital to finance exports and imports.

Between 80 and 90 percent of global trade depends on some sort of trade finance, yet structural access issues, related to factors such as poorly-developed banking sectors or perceived country credit risk, continue to act as bottlenecks.

In remarks at the event, WTO Director General Pascal Lamy said: “Overcoming existing skills gaps in developing countries can help them draw enhanced benefits from their participation in the multilateral trading system. These discussions have brought some key areas into focus, including access to finance — and trade finance in particular.”

Click here to read more on ICC’s website.

Staff contact: Eva Hampl

More on USCIB’s Banking Committee

ICC names Donald Smith New Banking Commission Technical Advisor

ICC announced earlier this month the appointment of three new technical advisors for its Commission on Banking – a leading global policy and rule-making body for the banking industry known worldwide for its trade finance products and services including Uniform Customs and Practice for Documentary Credits, the most successful privately drafted rules for trade ever developed.

These  include Donald Smith, president of Global Trade Advisory Ltd.

Smith has over 40 years’ experience in international banking operations and trade product management. He has been responsible for international operations for 4 banks. He served as senior project manager for the ICC’s 2011 Basel III Default Registry project which documented the level of risk in trade transactions; chaired the US Delegation to the ICC Banking Commission from 1998 to 2009 and co-chaired the drafting group which produced the ICC’s first International Standard Banking Practices (ISBP) publication. He presently serves on several ICC Task Forces. Read more on ICC’s website.

USCIBs Greene to Chair New Human Rights Working Group

Published on July 19, 2013

In June, the International Organization of Employers (IOE) announced the creation of several policy working groups to reinforce member ownership of the policies adopted by the organization and to create useful and timely output drawing on the wider expertise of the IOE’s worldwide employer network.

Among these is a new CSR and Business and Human Rights Policy Working Group, which will be chaired by Adam Greene, USCIB’s vice president for labor and corporate responsibility. Greene’s appointment underscores the active leadership role he and a broad array of USCIB members are playing in this area.

The working group will meet in Geneva on September 26 and December 2. Please contact us if you would like more information.

More on USCIB’s Corporate Responsibility Committee

USCIB Responds to OECD/G20 Report on Base Erosion and Profit Shifting

Published on July 19, 2013

New York, N.Y., July 19, 2013 – Responding to a much-anticipated report to the G20 governments from the Organization for Economic Cooperation and Development (OECD) on possible changes to global taxation rules, the United States Council for International Business (USCIB) said the report reinforces the business community’s position on compliance with existing tax rules and the need for reform.

The OECD today submitted its action plan to tackle “base erosion and profit shifting” (BEPS) to G20 finance ministers meeting in Moscow, fulfilling a request by the G20 leaders at their summit last year in Los Cabos, Mexico.

“The OECD recognizes that most tax planning complies with current rules,” said Carol Doran Klein, USCIB’s vice president for tax policy. “The report states that BEPS is not primarily an issue of tax compliance.”

Klein said USCIB supports regular review by governments to ensure their tax policies are fit for purpose. “Indeed, the U.S. tax system is in need of fundamental reform, particularly in the international area,” she said. USCIB and its partner business groups overseas believe that a consensus-based approach is most appropriate, rather than a piecemeal approach, which would likely increase double taxation. “The OECD, with its resources and the analytical ability to look at these complex issues is the best place to build consensus on these complex issues,” said Klein.

Throughout the development of the BEPS report, USCIB has worked closely with the Business and Industry Advisory Committee
(BIAC) to the OECD, which officially represents the view of industry in the Paris-based body, and for which USCIB serves as the U.S. member federation. BIAC has also issued a statement regarding the BEPS report, available here.

Bill Sample, corporate vice president for worldwide tax with Microsoft and chair of the USCIB Tax Committee, stated:  “USCIB and it members look forward to working with  BIAC and the OECD on this timely and important review of the application of current tax policies to multinational businesses. The factors driving the need for U.S. tax reform also impact the international tax system.”

Last month in Washington, D.C., the OECD, BIAC and USCIB jointly held the 8th annual OECD International Tax Conference, which featured an in-depth discussion of BEPS along with other important global tax policy topics. More information on that event is available here.

About USCIB:

USCIB promotes open markets, competitiveness and innovation, sustainable development and corporate responsibility, supported by international engagement and regulatory coherence. Its members include U.S.-based global companies and professional services firms from every sector of our economy, with operations in every region of the world. With a unique global network encompassing leading international business organizations, including BIAC, USCIB provides business views to policy makers and regulatory authorities worldwide, and works to facilitate international trade and investment. More information is available at www.uscib.org.

Contact:

Jonathan Huneke, VP communications, USCIB

+1 212.703.5043 or jhuneke@uscib.org

More on USCIB’s Taxation Committee

 

IMB Piracy Report Highlights Violence in West Africa

Published on July 15, 2013

4556_image001Somali piracy has fallen to its lowest levels since 2006, focusing attention on violent piracy and armed robbery off the coast of West Africa, the International Chamber of Commerce International Maritime Bureau (IMB)’s global piracy report revealed today.

Worldwide, the IMB Piracy Reporting Centre (PRC) recorded 138 piracy incidents in the first six months of 2013, compared with 177 incidents for the corresponding period in 2012. Seven hijackings have been recorded this year compared with 20 in the first half of 2012. The number of sailors taken hostage also fell dramatically; down to 127 this year from 334 in the first six months of 2012.

In the Gulf of Guinea, in addition to a rise in piracy and armed robbery – 31 incidents so far this year, including four hijackings – IMB reports a surge in kidnappings at sea and a wider range of ship types being targeted. This is a new cause for concern in a region already known for attacks against vessels in the oil industry and theft of gas oil from tankers.

“There has been a worrying trend in the kidnapping of crew from vessels well outside the territorial limits of coastal states in the Gulf of Guinea,” said Pottengal Mukundan, director of IMB, which has monitored world piracy since 1991. “There continues to be significant under-reporting of attacks – a phenomenon highlighted by the IMB year on year. This prevents meaningful response by the authorities and endangers other vessels sailing into the area unaware of the precise nature of the threat.”

Mr. Mukundan applauded the signing of the Code of Conduct Concerning the Repression of Piracy, Armed Robbery Against Ships, and Illicit Maritime Activity in West and Central Africa in June 2013 by the heads of the West and Central African countries.

Latest attacks may be viewed on the IMB Live Piracy Map.

Click here to read more in ICC’s website.

Staff contact: Nasim Deylami

More on USCIB’s Transportation Committee

US-China Strategic Economic Dialogue Announcement of Investment Talks

Published on July 12, 2013

4557_image002The 5th Round of the U.S.-China Strategic & Economic Dialogue (S&ED) concluded this week in Washington, D.C. with a promising announcement from China that they intend to begin formal talks on a high-standard bilateral investment treaty (BIT) with the United States.

In final statements, Treasury Secretary Jacob Lew said that his Chinese counterparts in the S&ED, Chinese State Councilor Yang Jiechi and Chinese Vice Premier Wang Yang, are ready to include all stages of investment and all sectors in the BIT negotiation.

This high-level agreement on basic terms of reference for negotiation of a high-standard U.S.-China BIT is quite encouraging. “If in fact China agreed to negotiations on all elements of an investment treaty, they would be opening up their economy considerably,” said USCIB Vice President Shaun Donnelly in an interview with Marketwatch. Donnelly said that all types of U.S. companies would benefit, especially oil and gas firms and financial-services entities.

Actual negotiation of such a BIT – including broad protections for investors, comprehensive definitions and coverage, strong investor-state dispute settlement provisions, and U.S.-style “pre-establishment” provisions for market-opening investment opportunities in both directions – will likely be quite challenging and will certainly take some time. But this high-level commitment to a negotiation of U.S.-style “gold standard” BIT is a very encouraging development.

Some other key developments from the S&ED include:

  • Acknowledgement of the cyber-theft issue and willingness to address the issue head-on
  • China’s announcement that it plans to submit a revised offer to join the WTO Government Procurement Agreement (GPA) by the end of 2013
  • China’s commitment to further open up to foreign investment – announcing a pilot free-trade zone in Shanghai for services
  • China’s commitment to further exchange-rate reform and enhanced foreign-exchange reserve transparency
  • China’s promise to provide requested audit work papers to U.S. market regulators, a step toward resolving issues on enforcement cooperation related to companies listed in the United States
  • Commitments from China to take important steps toward significant reform to the exchange-rate system, financial system, state-owned enterprises and taxes on businesses.

Please see final remarks from the S&ED here: http://www.state.gov/s/d/2013/211850.htm.

US-China Joint “Economic Track”S&ED Fact Sheet: http://www.treasury.gov/press-center/press-releases/Pages/jl2010.aspx.

Staff contacts: Justine Badimon and Shaun Donnelly

More on USCIB’s China Committee

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