Business Pressing for Ambitious Coverage of Financial Services in Transatlantic Trade Pact

Published on May 17, 2013

USCIB and nine other leading U.S. business groups sent a forceful joint letter to the White House last week pressing for ambitious and comprehensive financial services commitments in the soon-to-be-launched U.S.-EU Transatlantic Trade and Investment Partnership negotiations.

“We strongly support financial services liberalization both in the EU and the U.S.,” according to Shaun Donnelly, USCIB’s vice president for investment and financial services. “Our immediate concern, quite honestly, is more on the American side. We have picked up worrying reports that some U.S. financial regulators appear hesitant to fully embrace the regulatory cooperation elements for financial services, despite the fact they will likely be extended to virtually every other sector of the economy.”

Donnelly said USCIB and other business groups understand the complexity and unique nature of the financial services sector, and appreciate that commitments in a TTIP agreement on regulatory cooperation will vary by sector.

The joint letter recommends that U.S. and European negotiators with the relevant statutory authority and expertise lead discussions in the TTIP talks about the processes, mechanisms and commitments relating to regulatory cooperation on financial services. The business groups also urge that cross-cutting disciplines on regulatory cooperation (e.g. early transatlantic consultations among regulators, transparency, use of rigorous impact assessment tools, periodic review of existing regulatory measures, and applications of broad “good regulatory practices”) be applied to the financial services sector.

“We are also urging a TTIP agreement coordinate, and strengthen, the various U.S.-EU bilateral regulatory dialogues already in place, or those that might be created in the future,” said Donnelly. In the financial services space, that would currently encompass the U.S.-EU Insurance Dialogue and the U.S.-EU Financial Markets Regulatory Dialogue. “These dialogues, and other US.-EU specialized forums, have been a good start, but it is important now that the TTIP provide strong additional impetus to U.S- European cooperation and integration in these key sectors,” he said.

The business groups’ bottom-line message to the Obama administration is that they strongly reject any suggestion that financial services sector might not be fully subject to important disciplines under the TTIP. Given the key role that financial services play in facilitating and driving broader economic integration, it is crucial that any TTIP agreement not carve out or give short shrift to these key sectors.

Staff contact: Shaun Donnelly

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News Brief: Report Calls for Action to Stop Counterfeiting in Free Trade Zones

Published on May 15, 2013

A new report from ICC’s Business Action to Stop Counterfeiting and Piracy (BASCAP) initiative calls for increased regulation and better management of free trade zones (FTZs) to stop the alarming trend of the use of FTZs to facilitate the manufacture, distribution, and sale of counterfeit products.

The report, Controlling the Zone: Balancing facilitation and control to combat illicit trade in the world’s Free Trade Zones, looks at the increasing vulnerability of FTZs to criminal activities that are facilitating the global trade of counterfeit and pirated products. It summarizes the circumstances that have enabled the exploitation of FTZs, including an examination of weaknesses in international agreements, national legislation and judicial enforcement.

National governments encourage the creation of FTZs to increase trade and attract investment by removing or reducing duties and tariffs, softening customs controls and largely decreasing oversight in FTZs. These incentives have simultaneously made it easier for criminals to set up illicit operations, with increasing evidence showing that FTZs are being exploited to facilitate the international trade in counterfeit and pirated goods.

Last year, USCIB welcomed the Obama administration’s rollback of planned changes to the rules governing U.S. free trade zones. USCIB had earlier said some of the proposed changes would impose significant hurdles for exporters.

Read more and download the report on the ICC website.

Staff contacts: Helen Medina and Nasim Deylami

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Global Business Welcomes New WTO Director General Ahead of Bali Conference

Published on May 14, 2013

The International Chamber of Commerce (ICC), the world business organization for which USCIB serves as the American national committee, warmly congratulated Ambassador Roberto Carvalho de Azevedo of Brazil on his selection as the new director general of the World Trade Organization (WTO).

“The global business community congratulates Roberto Azevedo on his appointment,” said ICC Chairman-elect Terry McGraw, the CEO of McGraw-Hill Financial who also serves as chairman of USCIB. “We welcome Mr. Azevedo’s extensive experience in international economic affairs, and we pledge to work with him and his colleagues at the WTO to achieve even greater advancements in global trade to the benefit of all nations and their citizens, We also want to express our special thanks to Pascal Lamy for his tireless service as director general.”

ICC and the Qatar Chamber of Commerce and Industry launched the World Trade Agenda initiative at the WTO in March 2012. Its aim is to mobilize the business community in support of harvesting results on trade facilitation and other elements of the Doha Round negotiations at the 9th WTO Ministerial Conference in Bali this coming December.

ICC has undertaken an intensive program of consultations over the past year, reaching out to ICC’s network of 6.5 million companies in 130 countries.

The Peterson Institute for International Economics in Washington, D.C. recently quantified the potential benefits from ICC’s recommendations in a report entitled Payoff from the World Trade Agenda 2013. It found that by simplifying customs procedures – through trade facilitation measures – alone, member countries would deliver global job gains of 21 million, with developing countries gaining more than 18 million jobs and developed countries increasing their workforce by three million.

The World Trade Agenda was launched in response to calls from WTO members and from G20 leaders for fresh approaches following an 11-year impasse in multilateral trade negotiations. Business recommendations from this initiative will be delivered to G20 leaders and WTO ministers ahead of both the G20 Summit in Saint Petersburg and the Bali WTO Ministerial Conference.

Business Playing a Big Role in Leadup to Key Internet Forums

Published on May 14, 2013

The International Chamber of Commerce, the global business body which USCIB represents in the United States, welcomed the renewed strong representation of business in a multi-stakeholder advisory group responsible for steering preparations for the 8th Internet Governance Forum (IGF) – an open forum for policy dialogue on issues of Internet governance that will take place this October in Bali, Indonesia.

Nine members of ICC’s Business Action to Support the Information Society (BASIS) initiative secured a place on the MAG, a special advisory group to the UN secretary general representing Internet interest groups from governments, business, civil society and the Internet technical community. These included, from USCIB’s membership, Jeff Brueggeman, vice president-public policy, deputy chief privacy officer , AT&T, Theresa Swinehart, executive director, global Internet policy, Verizon, and Patrick Ryan, policy counsel, open Internet, Google. The United Nations confirmed 56 MAG members overall.

G20 Is Responding to Business Concerns but Could Do Better

Published on May 13, 2013

Paris and New York, May 13, 2013 – The G20 is responding to business concerns, but needs to further improve its performance in order to maintain momentum in the global economic recovery, according to a new report from the International Chamber of Commerce (ICC).

The second annual ICC G20 Business Scorecard, issued halfway through Russia’s presidency of the G20, was released by the Paris-based ICC and its American national committee, the United States Council for International Business (USCIB).

The scorecard assesses four policy areas that ICC’s G20 Advisory Group considers priorities for G20 attention: trade and investment, financing for growth and development, energy and environment, and anti-corruption.

Overall, the scorecard rates G20 responsiveness to business priorities as “fair,” indicating that G20 leaders are making progress but at a somewhat protracted pace. This is an improvement on the score from the 2012 scorecard, which rated overall progress as “poor.”

“It is encouraging to see the G20 making progress towards addressing business priorities, and this is reflected in an improved grade over last year,” said ICC Secretary General Jean-Guy Carrier. “However, this year’s mixed results indicate the G20 needs to do more to fulfill its self-defined role for leading the global economic recovery. Jobs and economic growth are in the balance.”

The ICC G20 Business Scorecard – which examines developments on business recommendations through to the end of the 2012 Mexican G20 presidency – measures progress on business priorities on a scale of:”‘inadequate,” “poor,” “fair” or “good.” It indicates that progress has been steady but limited, partially due to an unavoidable but distracting focus on responding to the on-going eurozone crisis.

Despite the “fair” overall score, the scorecard marks good performances in some policy areas. Notable areas of progress include a strengthened dialogue between business and the G20 on anti-corruption and steps taken under the Mexican G20 presidency to improve financial inclusion.

USCIB Chairman Terry McGraw (chairman, president and CEO, McGraw-Hill Financial) is among the members of the ICC G20 Advisory Group. McGraw will take the reins as chairman of ICC in July.

Click here for a longer version of this news release on ICC’s website, with additional tables from the ICC G20 Business Scorecard and background on other elements that were assessed.

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

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

Download the full ICC G20 Business Scorecard

More on USCIB’s Trade and Investment Committee

USCIB Rallies Support for World Bank Doing Business Reports

Published on May 8, 2013

USCIB and its global partners, the International Chamber of Commerce (ICC) and International Organization of Employers (IOE), are spearheading business advocacy to maintain the integrity and rigor of the World Bank’s annual “Doing Business” report and ranking.

In a response to criticism from China and other countries, the new president of the World Bank, Jim Yong Kim, appointed an independent panel of outside experts to review the Doing Business reports, which many in the business community view as a useful measuring tool for understanding the comparative attractiveness of a country’s business and investment climate.

The Doing Business reports currently provide objective measures and rankings of business regulations for local firms in 185 economies and selected cities around the world. In addition, the reports can serve an important policy function by providing leverage for economic reforms in nations where excessive regulation and hidden costs impede the process of starting and running a business.

China in particular has criticized what it says are the report’s “unfair” rankings. As reported in the Financial Times, China ranked 91st out of 185 economies in the most recent Doing Business report, with especially low scores for its construction bureaucracy and tax system.

The panel review is being conducted amid opposition to the report series from a coalition of NGOs, academics, labor unions, and large borrower countries. Using an open consultation process, the expert panel is soliciting comments and will use them as inputs into the decision-making process for the reports. In response, USCIB is leading an effort within the business community to emphasize the value of the reports as an unbiased and reliable source of information on investment, economic development, job creation, and market conditions in countries around the world.

Hearing for stakeholders

On April 18, ICC Secretary General Jean-Guy Carrier delivered comments directly to the independent panel, underscoring the important contribution of the reports to stakeholders spanning business and government entities. USCIB was represented at the hearing by Shaun Donnelly, vice president for investment and financial services, who afterward participated in a Q&A session with panel members. For its part, the IOE submitted comments to the panel and mobilized its worldwide networks of national employers’ bodies to do the same.

The following day, USCIB led a group of business and think-tank representatives in an open discussion session with the panel. According to Donnelly, USCIB is “speaking up aggressively on the value of a rigorous annual Doing Business Report, focused on real-world metrics of direct relevance to local and international business as they make investment and hiring decisions.”

Adam Greene, USCIB’s vice president for labor and corporate responsibility, was critical of the World Bank’s process in setting up the independent panel, noting that the panel had no business representatives even though its original terms of reference called for this. He called the consultation process “haphazard and not well communicated.”

Greene submitted a response to four questions solicited for the review process, covering topics such as the value, relevance, impartiality, effectiveness, and decision-making impact of the reports, as well as how they could be improved. His responses underscored that “the value of the report is that it speaks to the relationship between economic development, regulation, and report creation, and suggests ways to reduce the informal economy, where workers have no protections.”

He also noted that the Doing Business project addresses precisely the types of issues that the private sector believes must be included in the UN’s post-2015 development agenda, i.e., fostering a conducive environment for private enterprise and growth that can raise living standards and provide the resources to tackle urgent societal problems. “The fact that a number of countries are seeking to undermine that process indicates that some states aren’t very interested in taking serious steps to foster good governance or economic growth.”

The panel’s final report is expected within the next two weeks.

Staff contacts: Shaun Donnelly and Adam Greene

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At UN Climate Talks Business Urges Support for Investment and Innovation

Published on May 3, 2013

Climate negotiators met at the World Conference Center in Bonn, Germany.

“The success of a new UN long-term agreement will depend on stepping up investment and catalyzing innovation in mitigation technologies and adaptation frameworks.” This was the message delivered by Nick Campbell (Arkema), speaking for business and industry groups attending the most recent negotiating meeting of the UN climate agreement, held last week in Bonn, Germany.

According to Norine Kennedy, USCIB’s vice president for strategic international engagement, environment and energy, also attending the Bonn talks, these global talks provide an opportunity to frame a new flexible, durable and cost-effective agreement on climate change.

“The world has evolved since the Kyoto Protocol was agreed,” Kennedy said. “The new climate agreement should encompass and reflect new science, technology, energy and economic situations, and it will have to involve all major emitting countries. Business is looking for a regime that protects the planet, works in synergy with international open markets and trade and safeguards investments in research and innovation.”

http://www.iisd.ca/climate/adp/adp2/pix/29april/dsc_8352icc_twn-tn.jpg — Nick Campbell of Arkema spoke on behalf of the business and industry.

USCIB has worked closely with the International Chamber of Commerce, the Major Economies Business Forum and other business groups – representing a wide range of industries, in both developed and developing countries – to advocate the critical importance of creating enabling conditions to mobilize and leverage private-sector investment and innovation to address climate change and advance energy security and access.

Governments have announced their intention to conclude a new agreement for the post-2020 period within the next two years. A UN climate summit will take place on the sidelines of the 2014 UN General Assembly, and negotiating text is slated to be tabled by March 2015.

In Bonn, governments shared ideas on what might be in the new agreement. Tensions surrounded the challenging goals of gaining universal participation, developing acceptable national targets to achieve very ambitious global outcomes, and mobilizing significant funding to assist developing nations to mitigate their emissions and adapt to climate change.

Besides the implications of emissions mitigation and competitiveness concerns, business issues at stake in the negotiation include new policies to drive technological deployment and investment and potential new market mechanisms.

Under a U.S. government proposal, country-by-country pledges commitments could be submitted six months before the 2015 deadline, giving some time for a non-binding review to strengthen plans. Developing countries continue to call for a “top-down” target for emissions reduction and financial commitments.

USCIB’s Environment Committee, chaired by Ann Condon (GE), will begin preparations for the next round of UN negotiations to be held in June, with a focus on providing U.S business views on key elements of the international regime, and highlighting the need for positive conditions for development, commercialization and deployment of technology and know-how.

Staff contact: Norine Kennedy

More on USCIB’s Environment Committee

Greening the Agro-Food Chain: Better Policies Are Needed

Published on May 2, 2013

Last week in Paris, business executives and government policy makers held their first OECD workshop on how to make the agro-food chain greener and more sustainable for all.

The topic of green growth in the food and agriculture sector was at the core of discussions – organized by the OECD secretariat and BIAC, the Business and Industry Advisory Committee to the OECD, part of USCIB’s global network – which were held under the banner of “Green Growth in the Agro-food Chain: What Role for the Private Sector?”

A number of USCIB members joined Helen Medina, USCIB’s senior director of product policy and innovation, at the workshop. Participants agreed that business is the leading driver of agricultural productivity and resource efficiency, but that sound policies are necessary pre-requisites in order to realize the full potential of greening the agro-food chain.

The growing challenges facing the sector were addressed, such as climate change, rising demand for food, shifting diets, soil degradation and competing demands for vital resources such as water. These challenges oblige the sector to do more with less – i.e., increase agricultural productivity to meet growing demand, but in a sustainable manner.

USCIB members highlighted several areas that OECD governments can work on to promote sustainability, including:

long-term, fact-based, risk-based, predictable and interpretable regulatory processes
good governance and well-functioning institutions (notably to protect intellectual property and land rights)
international and cross-discipline collaborations in the area of R&D and opportunities for international cooperation in basic research
closer cooperation between the public and private sector
fostering trade and investment liberalization to facilitate the development and diffusion of technology
increasing access to financial services in rural areas and for farmers in order to increase capital investment
an overall enabling policy framework that provides adequate incentives to create and adopt new technologies in all areas.

“We must collectively look at the problems to identify and answer the questions.” said Denise Knight, director of sustainable agriculture with The Coca-Cola Company, In remarks to the workshop. “Coke’s business strategy includes taking a holistic and integrated approach that recognizes the value of the services provided by intact ecosystems. We believe in working with partners across sectors, business, government, and civil society, to share our expertise and work on coordinated approaches to resolve problems. But, we also look to governments to reduce trade barriers and streamline the regulatory environments so that we can fully realize our strategy for sustainability.”

Other participating USCIB members included Croplife USA, McDonald’s and Monsanto.

Business representatives reminded governments of the importance of measuring performance in order to track progress. The OECD can play an essential role in greening the agro-food chain by generating data, sharing best practices and encouraging international and economy-wide policy cooperation and dialogue with the private sector.

Staff contact: Helen Medina

More on USCIB’s Environment Committee

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USCIB Applauds Nomination of Froman as U.S. Trade Representative

Published on May 2, 2013

Michael Froman (left) and USCIB Chairman Terry McGraw (right), with Matt Goodman of the Center for Strategic and International Studies, at a 2012 briefing in Washington

New York, N.Y., May 2, 2013 – The United States Council for International Business (USCIB) welcomed President Obama‘s nomination of Michael Froman as U.S. Trade Representative, calling it a positive sign for renewed U.S. leadership on trade at a critical time for our economy.

“This is an excellent choice,” said USCIB President and CEO Peter M. Robinson. “Michael Froman has been a positive force for trade within the Obama administration, and is well respected in the business community. His nomination could not come at a better time, as the U.S. begins trade and investment talks with the European Union and pursues the Trans-Pacific Partnership.”

Robinson continued: “We urge the Senate to confirm Mr. Froman’s nomination as soon as possible. On our side, we will be working hard to provide input to USTR on top trade priorities, and to encourage overseas industry and government positions consistent with U.S. trade objectives.”

USCIB Chairman Terry McGraw (chairman, CEO and president of McGraw Hill Financial Inc.), also praised the nomination. “As Chairman of President Obama’s Advisory Committee on Trade Policy and Negotiations, I warmly welcome the appointment of Mike Froman as the next U.S. Trade Representative,” said McGraw, who was recently elected chairman of the International Chamber of Commerce.

“He is ideally qualified to lead us to completion of the Trans Pacific Partnership Agreement and steer us to successful negotiation of the US-EU trade initiatives, the Trade in Services Agreement and continue USTR’s strong support for an active US trade and investment agenda,” McGraw added.

USCIB has laid out an ambitious 2013 trade and investment agenda, which focuses on completing trade agreements in Asia and Europe, moving forward on bilateral investment treaties with key emerging markets, revitalizing work in the World Trade Organization, and addressing new emerging regulatory challenges that can serve as impediments to open trade and investment.

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 the International Chamber of Commerce, the International Organization of Employers and the Business and Industry Advisory Committee to the OECD, 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

Oracle’s Alhadeff Is New Chair of ICC Digital Economy Commission

Published on April 30, 2013

Paris and New York, April 30, 2013 – The International Chamber of Commerce (ICC) has announced the appointment of Joseph Alhadeff as the new chair of the ICC Commission on the Digital Economy, according to the United States Council for International Business (USCIB), which serves as the world business organization’s American national committee.

Alhadeff, chief privacy strategist and vice president for global public policy at Oracle Corp., has served as vice chair of the ICC commission since 2002. He will take over from Herbert Heitmann, executive vice president of external communications at Royal Dutch Shell, who will step down from the post at the commission’s summer meeting in Paris.

“Economic growth and continued societal opportunities created by the Internet and other ICTs bring new responsibilities that require the global cooperation of all stakeholders,” said Alhadeff, who also serves as vice chair of USCIB’s Information, Communications and Technology (ICT) Committee. “We have a responsibility to bring the voice of business to the table, based not only on the experiences of the business community but also on what this community has heard and learned from other stakeholders in government, civil society and the Internet technical community.”

The ICC Commission on the Digital Economy develops policy positions for the Internet and ICTs on behalf of users, providers and operators of information technology. As chair, Alhadeff will help ensure that the commission provides a forum for members to share insights on timely developments in the ICT field and establish global consensus policy positions on behalf of the business community to help foster the sustainable growth of the ICT sector.

Alhadeff is responsible for coordinating and managing Oracle’s international electronic commerce, privacy and Internet-related policy issues. He plays an important leadership role in guiding USCIB’s work on privacy and cyber-security policy, drawing on his prominent roles in several influential international organizations dedicated to Internet policy, security and privacy. Among these, Alhadeff chairs the Information Communications and Computing Policy Committee at BIAC, the Business and Industry Advisory Committee to the OECD, which represents industry views to the 35-nation Organization for Economic Cooperation and Development.

More information on the International Chamber of Commerce is available at www.iccwbo.org.

About USCIB:
USCIB promotes open markets, competitiveness and innovation, sustainable development and corporate responsibility, supported by international engagement and regulatory coherence. Its members include U.S.-based global companies and professional services firms from every sector of our economy, with operations in every region of the world. With a unique global network encompassing leading international business organizations, including ICC and BIAC, 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 Information, Communications and Technology Committee

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