Policy Areas Archives

USCIB Applauds Presidents Pledge to Move Forward on Korea Free Trade Agreement

Published on June 28, 2010

New York, N.Y., June 28, 2010 – The United States Council for International Business (USCIB), which represents America’s top global companies, released the following statement today:

USCIB applauds the announcement by President Obama, at the G20 Summit in Canada, of the United States’ determination to move forward on the U.S.-Korea free trade agreement currently awaiting submission to Congress.

Korea is already a key U.S. trading partner.  Ratification of the Korea FTA would solidify market access in this important and growing market for U.S. companies, providing a boost to employment at home and to U.S. competitiveness overall.

We hope this decision signals renewed vigor and forward movement in U.S. trade policy.  The Korea agreement and other pending bilateral FTAs deserve prompt attention from Congress.  Other nations have not stood still.  Indeed, the European Union recently agreed to a free trade agreement with Korea.  We must maintain forward momentum in our trade policy or risk being left behind.

USCIB also calls upon the Obama administration to join with the G20 and other trading partners to revive serious negotiation toward completing the stalled Doha Round of trade talks in the WTO.  Through our international affiliates, we have worked to develop a strong worldwide business consensus in favor of a balanced, ambitious and comprehensive Doha Round agreement.

At a time when we are facing the prospect of a double-dip recession along with major public-sector financial difficulties in many nations, such an agreement would provide much-needed stimulus to the global economy, and would help lay the foundation for sustained recovery and growth.

USCIB promotes open markets, competitiveness and innovation, sustainable development and corporate responsibility, supported by international engagement and prudent regulation.  Its members include top 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 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 Trade and Investment Committee

OECD Tax Conference Surveys Rapidly Changing Landscape

Published on June 10, 2010
L-R: The OECD’s Jeffrey Owens, USCIB President Peter Robinson, IRS Commissioner Douglas Shulman, Michael Reilly of Johnson & Johnson, USCIB’s Lynda Walker and Microsoft’s Bill Sample.
L-R: The OECD’s Jeffrey Owens, USCIB President Peter Robinson, IRS Commissioner Douglas Shulman, Michael Reilly of Johnson & Johnson, USCIB’s Lynda Walker and Microsoft’s Bill Sample.

As a new decade gets under way, the tax world is being reshaped by a series of major trends and developments.  Fallout from the financial crisis, the emergence of new economies as global players, a focus on transparency and effective tax administration, and increasingly close international cooperation are just some of the currents affecting tax systems and taxpayers alike.

Against this backdrop, USCIB, the OECD and BIAC convened their latest annual tax conference in Washington, D.C., June 7 and 8.  The event brought together top officials from the U.S. and other governments, OECD representatives, corporate executives and other experts to discuss how the Paris-based OECD, which groups the world’s major market democracies, influences tax policies worldwide, and how business can work with it.

The challenges facing tax professionals in both the public and private sectors are many and varied.  According to Bill Sample, corporate vice president for worldwide tax with Microsoft, and chair of USCIB’s Taxation Committee, the dispersal of key corporate functions across borders increases the number of international transactions just in the course of ordinary operations.  “With the rise of the service economy, and the prevalence of intangible goods like software, it can be a real challenge for policy makers to keep up,” he said.

Add to the mix the OECD’s recent enlargement and engagement with non-OECD economies, and the picture becomes even more multifaceted.  “The myth of the OECD as an insular ‘rich man’s club’ is being shattered as a new wave of members lines up to join, and as we deepen our engagement with other major new economies,” said Jeffrey Owens, director of the OECDs Center for Tax Policy and Administration.

The conference, which drew an audience of over 300, featured an array of thought-provoking panel discussions.

IRS Commissioner Douglas Shulman, who chairs the OECD’s Forum on Tax Administration (FTA), said the already close cooperation between tax authorities in manor economies would increasingly give way to cross-border coordination on key issues.

“As chair of the FTA, I am working with my international counterparts to build greater cooperation between tax authorities across the world,” Mr. Shulman stated.  He said FTA members could “speak with a unified voice on such critical maters as offshore compliance, corporate governance and high net-worth individuals.”

Mr. Shulman said a priority area for such international coordination is joint audits, where the United States and other jurisdictions would collaborate closely to avoid duplication of effort and agree on basic facts in a company audit and the appropriate treatment.  He predicted such audits would be less intrusive and burdensome for taxpayers, and he said the FTA would draft a how-to guide to ensure best practices and uniformity across borders.

Conference panels tackled a number of issues that can bedevil even the most astute tax planners at global companies.  Take transfer pricing, the system under which companies and tax authorities account for intra-company sales across borders.  “Transfer pricing disputes involving intangible goods tend to be among the most contentious and high-stakes international tax controversies companies face,” said Lynda Walker, USCIB’s vice president and international tax counsel.

The OECD is about to undertake a review of how its Transfer Pricing Guidelines apply to intangibles.  A panel at the conference looked at whether consensus can be reached on what exactly constitutes an intangible.

Another set of issues revolve around international efforts to curtail climate change.  Tradable permits are likely to be one of the principle instruments used to reduce emissions of greenhouse gases, according to Chris Lenon, global head of tax with Rio Tinto, and chair of BIAC’s Tax Commitee.  “Yet little systematic study has been undertaken of the tax treatment of such permits or of whether the interaction between national tax systems might impede the efficient operation of a cap-and-trade regime,” he said.

Panels at the conference also addressed information exchange between national tax authorities, value-added taxes, the OECD’s Model Tax Convention, secondment of employees and the “arm’s-length” principle, which was set forth by the OECD in 1995 to guide transfer-pricing matters but which is under increasing scrutiny.

All told, some 300 people attended the two-day conference.  Many presentations and other conference materials are available at www.uscibtax.org.  The dates of next year’s conference have been set for June 6-7, 2011.

Staff contact: Lynda Walker

Text of Commissioner Shulman’s remarks (IRS website)

More on USCIB’s Taxation Committee

OECD Center for Tax Policy and Administration website

BIAC website

 

USCIB Champions World Trade Week in New York

Published on May 21, 2010
Awards breakfast keynote speaker Joseph Quinlan (left) is introduced by USCIB President Peter Robinson.
Awards breakfast keynote speaker Joseph Quinlan (left) is introduced by USCIB President Peter Robinson.

World Trade Week, a nationwide celebration of international trade, was observed during, before and after the week of May 17 in many cities across the country.  Building upon our leadership on trade issues in the New York City area, USCIB proudly served as a main organizer of World Trade Week NYC, under whose auspices numerous trade-themed events took place around the city and the region.

This year’s festivities took on extra importance in light of President Obama’s goal, announced during the State of the Union address, of doubling U.S. exports within five years.  USCIB and other business groups applauded this goal, which got a boost from newly released export figures.

At a kickoff awards breakfast held at Baruch College in Manhattan, several New York-area companies and organizations were honored for international achievements and growth.  Joseph P. Quinlan, economist and chief global market strategist with Bank of America, provided keynote remarks emphasizing America’s continuing role as the world’s top exporter and manufacturer, and the importance of pursuing sensible policies to maintain that advantage by expanding opportunities for trade and investment overseas.

Calling himself a “paranoid optimist” on trade, Mr. Quinlan applauded the president’s goal of doubling exports but wondered if America’s political leaders had the will to see it through in terms of concrete policies and new trade agreements.  On this score, he urged the swift ratification of pending U.S. free trade agreements with Korea, Colombia and Panama.  Mr. Quinlan also said the United States lagged Europe and Asia in viewing expanded trade and overseas investment as essential public policy objectives.

USCIB’s Amanda Barlow (second from left) and guests at the awards breakfast. (Photo: Marcela Solano)

U.S. exports of goods and services increased by 16 percent during the first quarter of 2010, the Commerce Department announced the day after the awards breakfast.  “This is a great progress report,” said Fred P. Hochberg, head of the Export-Import Bank of the United States.  “What it really says is that there are significant opportunities globally for both large and small U.S. businesses.”

Meanwhile, a new survey by American Express signaled good news for business travel in the months ahead.  The majority of nearly 500 senior finance executives surveyed worldwide said they intend to maintain or increase business travel spending in 2010.

That dovetailed with a recent pickup in USCIB’s ATA Carnet service, which permits temporary export of many goods for trade shows, products demonstrations and other uses.  Carnet usage, which often serves as a leading indicator of exports, took a big hit alongside trade as a whole following the onset of the 2008-2009 recession, but has rebounded lately.

USCIB also organized a seminar on “Managing Your Trade Risk in Today’s Global Economy,” which examined the critical importance of risk mitigation for exporters and importers as we emerge from recession.  Speakers included: Dennis Gates of Roanoke Trade Services, who reviewed the global outlook on trade as well as insurance products to protect international transactions; Andrea Ratay of HSBC, who discussed the bank’s trade confidence index, which has also shown positive signs; and USCIB’s Amanda Barlow, who discussed how ATA Carnets can help exporters avoid costly duties, taxes and currency fluctuations.

As World Trade Week got under way, USCIB issued a call to action , urging members and friends to contact their elected representatives to voice their support for expanded trade and international commerce as essential drivers of U.S. jobs, growth and competitiveness.  In addition, in a podcast on the website of the Council on Foreign Relations, another World Trade Week partner, Jonathan Huneke, USCIB’s vice president for communications and public affairs, addressed the importance of sensible policies to secure the benefits of international trade and investment.

Staff contact: Cynthia Duncan

Interview with USCIB’s Jonathan Huneke (Council on Foreign Relations website)

World Trade Week NYC website

More on USCIB’s ATA Carnet Export Service

More on USCIB’s Trade and Investment Committee

USCIB Members Meet with European Climate Commissioner

Published on May 20, 2010
EU Climate Commissioner Connie Hedegaard
EU Climate Commissioner Connie Hedegaard

On May 12 in New York, USCIB held a business dialogue with EU Commissioner for Climate Action Connie Hedegaard at the European Union Delegation office to the United Nations.  The off-the-record session provided an opportunity to hold a dynamic discussion of global climate change matters in an informal setting.

USCIB President and CEO Peter Robinson introduced Commissioner Hedegaard and reviewed USCIB’s role, as American affiliate of the International Chamber of Commerce, in discussions under the UN Framework Convention on Climate Change.  This has included a strong American business presence at last December’s UN climate summit in Copenhagen, over which Commissioner Hedegaard presided as Danish environment minister.

Also leading the discussion were Ann Condon (General Electric), chair of USCIB’s Environment and Energy Committee, and Brian Fix (Salans LLP), who chairs USCIB’s European Union Committee.

The commissioner and participants spoke about a variety of key issues, including this fall’s climate talks in Cancún and the UN agenda for 2011, China’s actions on energy efficiency, and better ways for the business community to engage in global climate discussions.  USCIB members may contact Justine Bareford (jbareford@uscib.org) for a confidential summary of the meeting.

Staff contact: Justine Bareford

Commissioner Hedegaard’s website

More on USCIB’s Environment Committee

More on USCIB’s European Union Committee

Business Presses for Reform of Agricultural Exports and Travel With Cuba

Published on April 30, 2010
Havana waterfront: Cubans are hungry for American agricultural products, but our government makes it difficult for farmers to export to the island.
Havana waterfront: Cubans are hungry for American agricultural products, but our government makes it difficult for farmers to export to the island.

USCIB has joined other U.S. business associations and the agricultural and agribusiness community in backing legislation in the House of Representatives to ease certain restrictions on agricultural trade with Cuba and travel to that country.

On April 12, 2010, we expressed our strong support for H.R. 874, which would remove restrictions on the travel of U.S. citizens to Cuba.  The letter notes that current policies toward Cuba, including the travel ban, have not achieved their objectives and that the U.S. continues to lose influence in that country by isolating our citizens from traveling their as “Ambassadors of Freedom.”  We also highlight the anomaly that U.S. citizens can travel to North Korea and Iran, but not to Cuba.

On April 28, 2010, USCIB joined a larger group of organizations, most of which represent the U.S. agricultural community, in calling for passage of H.R. 4645, the Travel Restriction Reform and Export Enhancement Act.

The bill has three provisions:

  • It would reverse a Treasury Department interpretation of the term “payment of cash in advance” for agricultural sales to Cuba, which has a strong negative impact on U.S. exports.
  • It would eliminate a costly and discriminatory requirement that payments to U.S. agricultural exporters must pass through banks in third countries.
  • And it would lift restrictions on U.S. citizens traveling to Cuba.

USCIB has long believed that U.S. policy toward Cuba is antiquated, ineffectual and self-defeating, and sees these bills as a modest step forward in easing existing restrictions on agricultural trade and travel.

Staff contact: Timothy Deal

April 12 business letter on H.R. 874 to allow travel between the United States and Cuba

April 28 letter on H.R. 4645, Travel Restriction Reform and Export Enhancement Act

More on USCIB’s Trade and Investment Committee

 

Business Gears Up for UN Commission on Sustainable Development

Published on April 23, 2010

3978_image001Join USCIB and the International Chamber of Commerce as we represent business and industry at the upcoming meeting of the UN Commission on Sustainable Development (CSD), May 3-14 at United Nations headquarters in New York City.

For two weeks, USCIB representatives will attend the 18th session of UN CSD, and we are actively seeking USCIB members to take part in the delegation.

The CSD reviews international governmental actions and implementation of commitments arising from Agenda 21 and the Johannesburg Plan of Implementation, with a specific focus on chemicals, mining, sustainable consumption and production, transport and waste management.

CSD-18 will provide U.S. companies and business organizations with an opportunity to review policies relating to the five focus areas.  It will also serve as a forum for business and industry to showcase positive efforts being made in these areas of sustainable development, and to present successful examples of progress and achievement.

During CSD-18, USCIB and ICC will facilitate business and industry input and participation.  As part of a recognized “major group,” industry representatives can participate through interventions, question-and-answer sessions, and presentations in several interactive portions of the two-week agenda.

To learn more about the CSD 18 meetings, agenda and themes, please visit http://www.un.org/esa/dsd/csd/csd_csd18.shtml.

Please contact Kate Whitelaw (kwhitelaw@uscib.org) by April 29 if you wish to take advantage of any of the following opportunities:

  • Participate in the ICC delegation to CSD-18
  • Be kept abreast of developments in CSD-18
  • Be consulted when we seek comments on draft statements to CSD-18
  • Offer examples of progress or achievement towards sustainable development in the thematic areas of chemicals, mining, sustainable consumption and production, transport and waste management.

We hope that you will take advantage of this opportunity to shape global policies on these vital areas of sustainable development, and to help us highlight how American business is bringing important progress to the five themes presented at UN CSD.

Staff contacts: Norine Kennedy, Kate Whitelaw

UN Commission on Sustainable Development website

More on USCIB’s Environment Committee

New Report Shows Mixed Outlook for Recovery of Global Trade Finance

Published on April 22, 2010

3977_image001Paris and New York, April 22, 2010 – Prospects for a strong and lasting trade recovery are mixed, with access to affordable trade finance constrained, trade protectionism still a problem, and banks facing tougher capital requirements for their trade assets, a major new survey on trade finance by the International Chamber of Commerce (ICC) said today.

“The 2010 survey has confirmed that the current global financial crisis has continued to affect financial institutions and markets worldwide,” the report concludes, citing a 12 percent drop in trade in terms of volume last year, the sharpest decline since World War II.

“This is a challenging economic environment, and trade volumes may be further impacted in the coming months. On a global basis, the predictions for 2010-2011 remain cautious; many expect that the economic turmoil will continue to predominate.”

Nevertheless, 84 percent of respondents said they anticipated an increase in demand this year for traditional trade products such as commercial and standby letters of credit and guarantees.

ICC is the largest, most representative business organization in the world.  Its thousands of member companies in over 120 countries have interests spanning every sector of private enterprise.  The United States Council for International Business (USCIB), based in New York, serves as ICC’s American national committee.

The survey report, titled Rethinking Trade Finance 2010, includes the results of specific responses received from 161 banks in 75 countries, a 32 percent increase in the number of respondents compared with the last global survey in March 2009. The surveys, including an interim one published in September, were commissioned by the World Trade Organization’s Expert Group on Trade Finance to track the developments in the industry.

In terms of value, 60 percent of respondents indicated that trade finance activity had decreased between 2008 and last year, while 43 percent of financial institutions reported a decrease in export letters of credit volume, slightly down from 47 percent in the 2009 survey. On imports, 26 percent of respondents said they saw a decrease in import letters of credit, with 51 percent seeing no change from 2008.

ICC said the drop in trade was less marked in some regions, particularly Asia. It said most Chinese partners benefited from that country’s fiscal stimulus package and the rebound in Chinese imports. Worldwide, exports of durable goods were most affected, while trade in non-durable consumer goods including clothing and food declined the least. Trade in services was generally more resilient than merchandise trade.

“The survey is a continuation of ICC’s long series of actions in support of international trade,” ICC Chairman Victor K. Fung wrote in a foreword to the report. “In recent years ICC has emphasized the imperative of concluding the Doha Round of trade talks and on continuing the fight against protectionism.”

The report takes note of the pledges to fight protectionist pressures by G20 countries following the Washington, London, and Pittsburgh summits. “Yet since the onset of the crisis, many countries have veered towards policies that favor domestic products over foreign imports,” the report notes. “Protectionist measures should be resisted, as they curtail trade flows and add to the adverse effects of the global recession on individual country exports, economic activity and unemployment.”

But while demand for trade finance remains strong for traditional trade finance instruments, the costs remain substantially higher than before the global recession. Some 30 percent of respondents said there had been an increase in fees for commercial letters of credit, standbys and guarantees in 2009. The increase was attributed to higher funding costs, increased capital constraints, and greater counterparty risk.

Also worrying is the intense scrutiny of documents by banks, with 34 percent of respondents saying they had seen an increase in the number of refusals for trade finance, up from 30 percent in 2009. The number of doubtful or spurious discrepancies remains high, with 44 percent of respondents indicating that they had experienced such cases compared with 48 percent the previous year, at the height of the financial crisis.

“This trend toward claiming discrepancies that effectively have little or no foundation is worrisome and may prove damaging to the integrity of the documentary credit as a viable means for settlement in international trade,” the report warns.

The report raises concerns that, despite the injection of US$250 billion in aid for trade finance made available following the G20 summit in London in April 2009, evidence is accumulating that the implementation of the capital adequacy regime under Basel II rules is contributing to the drought in trade finance. ICC has expressed concern that the proposal by the Basel Committee on Banking Supervision to increase the risk weighing of trade finance under a new framework to limit bank leverage would adversely impact the supply of cost-effective trade credit to businesses.

“It appears that low-risk trade finance instruments are being lumped together with higher-risk, off-balance-sheet items, without an appreciation of unintended consequences,” the report adds.

The  ICC trade finance report is being launched simultaneously in Paris led by ICC Secretary General Jean Rozwadowski and in Beijing by ICC Chairman Fung and ICC China Secretary General Zhou Xuehai.

USCIB promotes international engagement and prudent regulation in support of open markets, competitiveness and innovation, sustainable development and corporate responsibility.  Its members include top U.S.-based global companies and professional services firms from every sector of the economy, and 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 information is available at www.uscib.org.

Contact:

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

ICC report: Rethinking Trade Finance 2010

ICC website

More on USCIB’s Trade and Investment Committee

 

Government Action Urged to Sustain US Leadership in Science and Engineering

Published on February 23, 2010
Source: National Science Board
Source: National Science Board

The U.S. government needs to take careful note of developments in science and engineering around the world in order to maintain America’s technological edge, according to a new report from the National Science Board (NSB).  The board is a congressionally chartered body that regularly assesses the state of science and technology at home and abroad.

The report, “Globalization of Science and Engineering Research,” was released February 19 at the American Association for the Advancement of Science’s annual meeting in San Diego.

“U.S. economic and social growth depend upon having a skilled workforce and being competitive in the global marketplace,” according to Art Reilly, senior director for science and technology policy with Cisco Systems, Inc., and chair of USCIB’s Information, Communications and Technology Committee, a member of the NSB.  “Education and innovation are critical to maintaining strengths in both of these.”

Last month, in releasing its biennial science and engineering indicators, the NSB said that “the state of the science and engineering enterprise in America is strong, yet its lead is slipping.”

The new NSB report notes that science and engineering research is becoming an increasingly internationalized, largely because governments are championing R&D as a spur to economic growth, employment, and overall social well-being.

“While increased global science and engineering research capacity holds great promise for the advancement of scientific knowledge and collaboration in S&E across international borders, the U.S. government must be attentive to developments in S&E capacity around the world and take proactive steps to maintain our nation’s competitive strength,” NSB Chairman Steven Beering, professor emeritus at Purdue University, writes in the report.

The NSB report is available at: http://www.nsf.gov/statistics/nsb1003/?org=NSF.

Staff contact: Heather Shaw

National Science Board website

More on USCIB’s Information, Communications and Technology Committee

 

Open Trade Is Essential for Successful Action on Climate

Published on December 16, 2009
Trade can help make a greener world.
Trade can help make a greener world.

Copenhagen and New York, December 16, 2009 – What do the UN climate talks and the stalled Doha Round of trade negotiations have in common, apart from seemingly mind-numbing complexity?  Answer: Success in both will be essential for global sustainable development.  So says the head of an industry group representing top U.S. multinationals.

“International trade is a proven path to economic growth and technological advancement,” according to Peter M. Robinson, president and CEO of the United States Council for International Business (USCIB).  “As countries trade more, they grow richer and have additional resources to devote to environmental protection.  Both industrialized and developing countries have a clear stake in coordinated action to open markets and tackle global warming.”

So do companies, which is one reason USCIB members and other business representatives gathered yesterday with UN negotiators for a key side event in Copenhagen. The invitation-only event, titled “Trade, Investment and Climate Change – Synergies for Economic Growth and Environmental Progress,” sought to underscore the American business community’s strong commitment to positive and mutually reinforcing outcomes in global climate and trade negotiations.

“We want to highlight the positive relationship of open trade and investment with technology and financing for climate solutions,” said Mr. Robinson.  “Reaching a comprehensive WTO agreement that lowers trade barriers would boost investment and innovation in climate-friendly technologies.  On the other hand, if trade and climate are set against each another, the result would be to fuel protectionism and complicate the already difficult task of forging a global consensus on climate.”

Even now, said Mr. Robinson, too many countries are leaning toward using trade as a “hammer” to force countries to follow a specific path on reducing emissions of greenhouse gases.  “This temptation must be resisted,” he stated.”  “We need more carrots, and fewer sticks.”

Freeing up trade in environmental goods and services would give a boost to curbing global warming.  A 2007 World Bank study found that removing tariffs and non-tariff barriers in 18 of the high-emitting developing countries for four basic clean energy technologies (wind, solar, clean coal and efficient lighting) could lower the costs of these technologies by 13 percent, which could help reduce emissions significantly.

“What’s more, it is clear that these reductions could be further augmented through better management practices and technical know-how, both of which tend to follow in trade’s wake,” according to Mr. Robinson, who is attending the climate conference under the banner of USCIB’s global affiliate, the International Chamber of Commerce (ICC), which is coordinating business and industry representation in Copenhagen.

USCIB promotes international engagement and prudent regulation in support of open markets, competitiveness and innovation, sustainable development and corporate responsibility.  Its members include top U.S.-based global companies and professional services firms from every sector of the economy, and 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 information is available at www.uscib.org.

Contact:

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

ICC website (includes related news from Copenhagen summit)

More on USCIB’s Environment Committee

More on USCIB’s Trade and Investment Committee

How Technology Can Be Marshaled to Tackle Climate Change

Published on December 14, 2009
The fruits of innovation must be fostered and safeguarded to unleash new climate technologies.
The fruits of innovation must be fostered and safeguarded to unleash new climate technologies.

Copenhagen and New York, N.Y., December 14, 2009 – Over the next 25 years, global population is expected to rise by 1.5 billion, to 8 billion, while economic output doubles.  In that same period, worldwide energy demand will increase by 50 percent.  How can technology keep pace and still meet ambitious goals for addressing climate change?

Unleashing innovation is key, according to the International Chamber of Commerce (ICC), which will today hold a side event at the UN climate conference focused on the need to implement sound policies to spur a technological revolution to tackle global warming.  ICC representatives say getting the policy mix right will be crucial, while making the wrong choices would set back warming efforts significantly, making future drastic action all the more likely.

“Business is the primary source of climate-related innovation, but in many cases it can’t act alone,” according to Peter M. Robinson, president and CEO of the United States Council for International Business (USCIB), ICC’s American national committee, who is attending the Copenhagen conference under ICC’s banner.  “Companies often form alliances with governments, universities and research institutions in any number of areas.  These public-private partnerships can be crucial in leveraging resources and benefits, and this is clearly the case with climate-related technologies.”

ICC is coordinating business representation at the Copenhagen conference.  With hundreds of thousands of member companies in over 130 countries, the Paris-based body works closely with the United Nations and other intergovernmental organizations on behalf of the business community.  A network of ICC national committees, including USCIB, represent the world business organization’s views to their governments.

According to Mr. Robinson, the most efficient way to commercialize government and academic research is to transfer or license patents to the private sector, thereby creating an incentive for companies to invest the necessary funds to bring technologies to market.

“Governments should increase funding for basic research into in environmental and energy technologies, and they must also maintain policies that encourage innovation and the dissemination of new solutions,” he said.

Protecting intellectual property rights is critical, according to Norine Kennedy, USCIB’s vice president for environment and energy, who urged UN negotiators to avoid the temptation to water down intellectual property rights under the misconception that this may speed developing countries’ access to key climate technology.

“When governments look at potential mechanisms to encourage technology transfer, they need to avoid measures that would create additional burdens and legal uncertainty for the owners of intellectual property,” Ms. Kennedy stated.  “When coupled with increased government incentives and development assistance, existing international rules covering intellectual property rights should be sufficient to ensure that advanced technologies are deployed swiftly to address climate change.”

USCIB promotes international engagement and prudent regulation in support of open markets, competitiveness and innovation, sustainable development and corporate responsibility.  Its members include top U.S.-based global companies and professional services firms from every sector of the economy, and 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.

Contact:

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

ICC website (with links to recent statements)

More on USCIB’s Environment Committee