Policy Areas Archives

ICC Secretary General Meets With USCIB Members, Staff

Published on February 12, 2019
John Denton

John Denton, the Australian lawyer and diplomat who last year took the reins as secretary general of the International Chamber of Commerce (ICC), the world business organization that serves as the linchpin of USCIB’s global network, met with USCIB members and staff during a visit to New York in early February.

Leading representatives of USCIB member companies from a variety of industries, and reflecting a wide spectrum of expertise across USCIB’s various policy committees, gathered in USCIB’s New York and Washington, D.C. offices. Joined by video conference, they provided the ICC secretary general with their views and priorities across multiple practice areas. Denton took advantage of the opportunity to compare notes on a variety of global economic and business challenges, and laid out his efforts to streamline and re-imagine ICC’s vision, structure and services.

Denton was elected to head the secretariat of the Paris-based ICC in March of last year. A legal expert and adviser on global policy, international trade and investment and infrastructure, Denton previously served on ICC’s Executive Board and, in 2016, became the first Australian to hold the position of first vice chair of ICC.

 

USCIB Participates in Business Coalition Fly-in on China Tariffs  

Published on February 11, 2019

USCIB Senior Director Eva Hampl participated in the Fly-In organized by Tariffs Hurt the Heartland the nationwide campaign against tariffs, combining the efforts of Farmers for Free Trade and Americans for Free Trade, of which USCIB is a member. Groups of representatives from associations and companies covered over 150 meetings with Senate and House offices from both sides of the aisle over February 6-7.

“There is general concern about the tariff actions, with many members of Congress having signed on to letters either on the section 232 tariffs or on the section 301 exclusion process,” stated Hampl. “However, there is also still a lot of apprehension about publicly pushing back against the President’s actions on tariffs. To those who expressed a desire to wait and see what happens on March 1 – the deadline for reaching a deal with China, to prevent tariffs on $200 billion worth of Chinese imports increasing from 10% to 25% — we repeatedly made the point that the time to act is now, as the damage to US industry and consumers increases with every day these tariffs are in place.”

To underline these points, a new study launched showed that in the event that tariffs of 25% go into effect on March 2 on List 3, combined with various other tariffs and retaliation already in place, the net impact on U.S. jobs will be over 900,000 and the annual impact on a family of four over $750. For the complete study, please click here.

There are two pieces of legislation that were introduced in in the Senate the week of February 4, both of which have House companion bills: (1) the Bicameral Congressional Trade Authority Act and (2) the Trade Security Act. Both attempt to push back against the President’s authority on tariff actions.

United States Trade Representative Robert Lighthizer and U.S. Secretary of the Treasury Steven Mnuchin will travel to Beijing for principal-level meetings on February 14 and 15, and these meetings will be preceded by deputy-level negotiations beginning on Monday, February 11.

 

Tariffs Hurt the Heartland Group Warns of Impacts on Economy

Published on February 6, 2019

USCIB Senior Director Eva Hampl will be taking part in a “Tariffs Hurt the Heartland” fly-in on Capitol Hill February 6-7. This fly-in is organized by a broad coalition of business groups that warned about the detrimental impacts of tariffs on Chinese imports on the U.S. economy in a recent press release. Tariffs Hurt the Heartland is the nationwide, non-partisan campaign opposing tariffs that is supported by over 150 trade associations from every industry, including USCIB.

The press release emphasized that new auto tariffs and tariffs on all Chinese imports would lead to 2.2 million job losses, cost the average family over $2,300 and reduce GDP by over 1%. Moreover American workers will lose nearly one million U.S. jobs if tariffs rise to 25 percent on March 1.

The report, which served as the basis for the press release, was prepared by Trade Partnership Worldwide LLC.

In Op-ed, Robinson Stresses Business’s Critical Role in WTO Modernization

Published on February 6, 2019

With members of the World Trade Organization set to launch new talks on digital trade amid calls for the organization to be reformed, USCIB President and CEO Peter Robinson has appealed for a strong business role in efforts to modernize the global trade body.

In an op-ed published in The Hill, USCIB’s president wrote: “The views of the private sector, which has a direct stake in the rules that result from such government-to-government discussions, should be actively solicited and given careful consideration by WTO member states.”

Robinson called on governments to strengthen the WTO in four key areas:

  • tackle subsidies and the role of state-owned enterprises
  • develop new rules for cutting-edge trade issues
  • modernize the WTO’s rules and procedures, and
  • improve the WTO’s dispute settlement mechanisms

“If governments work with business, we are confident that the WTO can be reformed and modernized to continue effectively advancing a rules-based global trading system,” Robinson wrote. Read the full op-ed on The Hill’s website.

USCIB Releases 2019 Trade and Investment Priorities

Published on February 5, 2019

USCIB has published its 2019 Trade and Investment Agenda. The Agenda is a result of an intensive consultation process with USCIB members to identify key member priorities for 2019. Per member input, many key principles developed for 2018 remain relevant for this year, though the changing trade and investment landscape has also raised new priorities for 2019.

The annual action plan anticipates a potentially busy year on trade and investment including: pressing for congressional approval of USMCA in 2019, seeking Administration action to resolve differences with China, movement on trade negotiations with Japan, EU and the UK, supporting negotiations in the WTO on a digital trade agreement, and modernizing the WTO,” said USCIB Senior Vice President for Policy and Government Affairs Rob Mulligan. “We look forward to a busy and productive year opening international markets and strengthening the global rules-based trade and investment framework.”

The 2019 Agenda will be shared with key U.S. government policymakers.

Arbitration Committee Meetings Plan for Upcoming Year

Published on February 5, 2019
USCIB President and CEO Peter Robinson speaks at the NY Arbitration Committee luncheon

USCIB co-hosted Washington, DC and New York City luncheons of its Arbitration Committee on January 25 and 29, respectively. The meetings brought together local arbitration professionals for an update on new initiatives, as well as a look back on 2018 accomplishments by the ICC International Court of Arbitration©.

Hosted by Washington, DC Subcommittee Chair, Jonathan Greenblatt of Shearman & Sterling, the Washington Luncheon featured a presentation by and discussion with the Secretary General of the ICC Court Alexander Fessas, who provided an update on the ICC’s cases in 2018, use of the expedited and the emergency arbitrator procedural rules and the ICC Court’s goals for 2019. This was followed by an interactive panel discussion with Grant Hanessian of Baker & McKenzie, Claudia Frutos-Peterson of Curtis, Mallet-Prevost, Colt & Mosle LLP, and Christopher Ryan of Shearman & Sterling, providing practical guidance for handling arbitrations involving states and state-entities and describing key differences when handling investor-state and commercial disputes. The program ended with USCIB General Counsel Nancy Thevenin providing an update on developments in USCIB’s Arbitration Committee.

Hosted by Hanessian, the New York Luncheon several days later featured executive summaries from key members of the ICC International Court of Arbitration, including President Alexis Mourre, Secretary General Alexander Fessas and Counsel for North American Cases Marek Krasula. Mourre provided insight into trends in U.S. cases during the past year and expected developments in the coming year. This was followed by a town hall-style Q&A moderated by Claudia Salomon of Latham & Watkins, who also serves as the vice president of the ICC Court, with questions about the ICC Court’s diversity initiatives, arbitrator appointment process and plans to publish some of its awards.

Business at OECD Committed to OECD Digital Tax Project

Published on February 5, 2019

Business at OECD welcomed the OECD/G20 policy note on January 31 titled, Addressing the Tax Challenges of the Digitalization of the Economy, which was approved by the Inclusive Framework (IF) on Base Erosion and Profit Shifting (BEPS), reaffirming commitment to a multilateral solution to addressing the tax challenges of the digitization of the economy.

According to Business at OECD, this initiative will impact all businesses and is of critical importance to the integrity of the international tax system. The OECD Inclusive Framework can reach international consensus in this area, and Business at OECD is committed to engaging a diverse and effective business network in the consultative process going forward.

“Broad consensus on measures for taxation of the digitizing economy is crucial to ensure innovation, growth, and stem instances of double taxation,” stated Will Morris, chair, Business at OECD Committee on Taxation and Fiscal Policy. “In this context, measures should also enable tax administrations to collect revenue needed for essential and efficient governmental functions.”

“The OECD is the appropriate forum to have a discussion about changes to the international tax system,” emphasized USCIB Vice President for Tax Policy Carol Doran Klein. “Countries should forego unilateral changes while that consensus develops.”

On January 21 Business at OECD released 11 foundational principles for international tax measures in the digital age.

Hampl Gives Testimony on US-UK Trade Agreement

Published on January 29, 2019
Eva Hampl provided testimony before the Trade Policy Staff Committee, chaired by USTR, on January 29.
USCIB supports negotiation of a comprehensive trade agreement with the UK as part of a broader strategy to open international markets for U.S. companies and remove barriers and unfair trade practices in support of U.S. jobs.

 

Following USCIB’s submission on January 16 to USTR regarding negotiating objectives for a U.S.-UK Trade Agreement, USCIB Senior Director for Investment, Trade and Financial Services Eva Hampl provided testimony before the Trade Policy Staff Committee, chaired by USTR, on January 29.

“USCIB supports negotiation of a comprehensive trade agreement with the UK as part of a broader strategy to open international markets for U.S. companies and remove barriers and unfair trade practices in support of U.S. jobs,” said Hampl in her testimony. “We strongly believe that continued U.S.-UK free trade is overwhelmingly in the interests of both countries and their global trading partners, provided that the agreement is a high standard and comprehensive bilateral trade and investment agreement. A successful trade agreement with the UK should cover not just market access for goods, but also address important services issues.”

Hampl’s testimony also emphasized the importance of regulatory cohesion across the United States, the UK and the European market as a key component in further liberalizing trade. Regulatory discrimination and differentiation between trade partners can be an obstacle to trade, investment and the ability to conduct business. Affected sectors include pharmaceuticals, chemicals and fintech.

Hampl also raised the issue of digital trade. “U.S. companies rely on cross-border data flows as part of their day-to-day operations,” said Hampl. “A U.S.-UK agreement should include requirements that data can flow unimpeded across borders except for limited and well-defined public policy exceptions, ensuring that they are not used as disguised barriers to trade.”

Regarding intellectual property (IP) protection, Hampl noted that at a minimum, a U.S.-UK agreement should enshrine existing protections and enforcement mechanisms. It should also address sectoral IP issues, such as in the pharmaceutical space.

To read Hampl’s testimony, please click here.

Global Pact for Environment Negotiation Fails to Reach Consensus

Published on January 28, 2019
This first negotiating session was mandated by the UN General Assembly to review “gaps” and “fragmentation” of international environmental law, and consider the substance and form of a Global Pact.
Countries raising strong concerns included the United States with Argentina, Brazil, Iran, Russia and Iran.

 

Joining an International Chamber of Commerce (ICC) delegation representing business interests, USCIB attended the first substantive inter-governmental negotiations on a UN Global Pact for the Environment (GPE), hosted at the headquarters of UN Environment in Nairobi, Kenya January 14 – 18.  ICC also held a preparatory meeting on the proposed GPE in Paris on January 8, attended by USCIB members American Chemistry Council, Arkema, Bayer, Monsanto and Novozymes, along with USCIB Vice President for Strategic International Engagement, Energy and Environment Norine Kennedy.

This first negotiating session was mandated by the UN General Assembly to review “gaps” and “fragmentation” of international environmental law, and consider the substance and form of a Global Pact. Some countries recommended the Pact should be a legally binding treaty that codifies “soft law” principles, such as the Precautionary and Polluter Pays principles. Other countries also suggested including rights-based approaches to a “clean and healthy environment.”

The Nairobi meeting, chaired by Ambassadors of Lebanon and Portugal, was open to observers from non-governmental and business organizations.  The session reviewed a report from the UN Secretary General on Gaps in International Environmental Law and Environment Related Instruments.

Countries supporting the development of a holistic Pact, possibly including codified environmental principles, improved coordination and implementation of existing environmental agreements and defining environmental human rights, included the European Union bloc, Switzerland, Micronesia, Morocco, Peru and Senegal.

Countries raising strong concerns included the United States with Argentina, Brazil, Iran, Russia and Iran.

Most other countries expressed more nuanced views along with questions about practicality, efficacy, political viability and other areas.

“The proposed Pact opens a complex set of legal and regulatory issues, yet has not defined any actual environmental challenges that it would address,” stated Kennedy. “Until that is clear, USCIB will continue to raise questions about whether such a Pact would actually improve implementation of international environmental rules.”

The session closed with no consensus on the substance or form of a proposed Pact. Two further sessions in Nairobi are to deliver a recommendation to the UN General Assembly this September for next steps to develop a GPE. The next UN negotiating session from March 18-20 will seek to reach a common understanding on what constitutes a “gap” in international environmental law, as a precursor to seeking to agree specific “gaps” and remedies that might be set out in a UN Global Pact.

USCIB Urges Removal of Steel and Aluminum Tariffs in USMCA

Published on January 23, 2019

USCIB joined a coalition of other trade and industry organizations to send a letter to Secretary Wilbur Ross and Ambassador Robert Lighthizer on January 23 regarding the 232 tariffs on steel and aluminum.

“The coalition, recognizing the importance of the new U.S.-Mexico-Canada Agreement ratification to the economic interests of all three countries, underscored the importance of lifting these tariffs, as well as the removal of all retaliatory tariffs on trade among the three countries,” stated Eva Hampl, senior director for investment, trade and financial services.

“For many farmers, ranchers and manufacturers, the damage from the reciprocal trade actions in the steel dispute far outweighs any benefit that may accrue to them from the USMCA,” stated the letter. “The continued application of metal tariffs means ongoing economic hardship for U.S. companies that depend on imported steel and aluminum, but that are not exempted from these tariffs. Producers of agricultural and manufactured products that are highly dependent on the Canadian and Mexican markets are also suffering serious financial losses.”