UN Climate Talks Agree on Paris Pact Implementation

Norine Kennedy (center, at laptop) speaks at a business dialogue in Katowice, Poland.
Talks went down to the wire to address who pays for losses due to climate change, and how to balance responsibilities of industrialized vs. developing countries.
USCIB has urged the Trump administration to remain at the table in the UN climate process.

This year’s UN Climate Conference (COP 24) concluded late on Saturday night in Katowice, Poland, having made major progress in several key areas for American business, including on implementation of the landmark 2015 Paris Climate Agreement.

Over 31,000 representatives of governments, UN bodies, NGOs, business and the media were on hand in the capital of Poland’s coal-dependent Silesia province for the 24th conference of parties to the UN Framework Convention on Climate Change.

Norine Kennedy, USCIB’s vice president of strategic international engagement, energy and environment, attended the entire two-week conference. She noted that, despite rough patches that delayed reaching a resolution, the resulting “Paris Rulebook” now offers clarity and predictability for companies planning long term investment and operations relating to energy.

“Crunch issues, which weren’t resolved until the last minutes of intense negotiations, included compensation for climate change-related loss and damage, how to reference scientific findings on potential impacts of a 1.5 degree (Celsius) change in global temperatures, and how to balance reporting requirements for developed and developing countries to ensure comparability and fairness.” Kennedy said.

On the Paris Rulebook, an implementation guide for the Paris Agreement, governments reached compromises to advance accounting and reporting of national climate pledges, as well as information on support provided to developing countries by developed countries. Kennedy said the price of the compromises reached seems to be a decision to defer an outcome on a section of the Paris Rulebook relating to voluntary carbon markets until next year’s conference of the parties, when governments will gather again in Chile.

“The UN Climate Agreement is a dynamic enterprise that has evolved to reflect new science and include new issues, such as just transition,” she said. “But a constant in the UN deliberations is the imperative for business innovation, engagement and action.” USCIB has advocated for enhanced involvement of representative business and employers’ organizations in the policy and implementation discussions.

The International Chamber of Commerce once again provided support for private-sector representation at the COP. USCIB members attending the two-week session took part in the ICC Business Day, the Major Economies Business Forum Business Dialogue and in presentations of the Global Action Agenda showcasing voluntary initiatives by business and other non-governmental interests.

On December 9, USCIB presented its report, “Business Engagement in Implementing National Climate Pledges and the Paris Agreement.” This report gathers business and government experiences in framing and acting on national pledges, and identifies best practices as national governments strengthen their national climate programs, working with business and other societal partners.

“USCIB has encouraged the Trump administration to advance U.S. business interests in the UN climate talks, including the Paris Agreement,” Kennedy noted. “We support having the U.S. remain at the table to defend American economic interests that may arise there.”

The UN process will now move ahead towards a UN Climate Summit to be convened by UN Secretary General Antonio Gutierres in September 2019 in New York, then on to Chile next December.

Digital Partnerships Crucial to Achieve Sustainable Health

The Forum explored the role digital technologies and strategic partnerships play towards the success and well-being of economies and societies.
The Forum featured business contributions on the potential of data for better health, planning for new technologies, and connecting people and patients with healthier choices and lifestyles through digital opportunities.

 

Business at OECD (BIAC) convened senior representatives from business, the OECD, and governments on December 14 in Paris at its 3rd Annual Forum on Health. The Forum explored the role digital technologies and strategic partnerships play towards the success and well-being of economies and societies. The Forum also featured business contributions on the potential of data for better health, planning for new technologies, and connecting people and patients with healthier choices and lifestyles through digital opportunities.

“Improving health in the 21st century can only take place with patient and consumer engagement by optimizing prevention and disease management approaches” said Nicole Denjoy, chair of the Business at OECD Health Committee. “Digital and health technologies are critical to achieve this goal, but we still need policies that support this transformation.”

Experts also examined how partnerships can help achieve balanced dietary choices and active lifestyles. “Well-structured Public-Private initiatives show how even challenging issues can be tackled through joint actions when implementation is effective, positive changes bring mutual benefits and the targeted groups are supported with measures appropriate to their needs,” said Russel Mills, Business at OECD Secretary General.

“This exemplifies the extent to which digital transformation has affected all aspects of our lives,” said USCIB Vice President for ICT Policy Barbara Wanner. “Digital transformation creates some challenges, to be sure, but also offers promising health-related benefits that have the potential to improve everyone’s quality of life, provided there are appropriate enabling conditions for business investment in continued innovation.”

Commenting on the role of international cooperation, OECD Secretary General Angel Gurria stated, “Greater co-operation between the private and public sectors on health issues will be critical to unlock the full power of digital innovation in this area. Partnerships, including at the international level, are essential to connect the brightest minds and to promote research on complex health issues, especially where upfront R&D expenditures are vast and payoffs uncertain.”

Unilever’s Polman Exhorts Industry to Redouble Action on Sustainability

Unilever CEO Paul Polman
Companies need to spur new partnerships to get to the “tipping point” on sustainability, said the 2018 recipient of USCIB’s International Leadership Award.
Hundreds of attendees gathered at the Delegates Dining Room at the United Nations for the annual USCIB award gala.

Business leaders must increase their commitment to sustainability, partnering with governments, international organizations and NGOs, if humanity is to avoid serious crises resulting from environment degradation and persistent poverty, according to Paul Polman, CEO of Unilever and the 2018 recipient of USCIB’s International Leadership Award. Polman was honored at a gala dinner last night at the Delegates Dining Room at the United Nations in New York.

“We need to create broader partnerships to get to the tipping point” of tackling climate change and other global challenges, according to Polman. “It doesn’t take much to move the global agenda. It just takes a few people. It takes the right leaders, leaders with a high awareness of what is going on, but also a high ability to engage. Leaders with a certain sense of humanity and humility, purpose-driven, longer-term, willing to work in partnerships. Not necessarily the skills that we’ve all been taught.”

L-R: USCIB Chairman Terry McGraw, ICC Secretary General John Denton, Unilever CEO Paul Polman, UN Deputy Secretary General Amina Mohammed, USCIB President & CEO Peter Robinson

USCIB’s annual award dinner attracted hundreds of top business executives, policy makers and members of the diplomatic community to the UN headquarters on a crisp, starry night, with speakers extolling the importance of a strong business role in confronting global challenges. UN Deputy Secretary General Amina Mohammed applauded the private sector’s participation in realizing the ambitious 2030 Development Agenda, and she, like Polman, encouraged companies to do more.

As global leaders confront new, populist challenges on trade, USCIB Chairman Terry McGraw, CEO emeritus of S&P Global, said that governments and international organizations also must do more to ensure the 2030 goals are met. “Without expanded cross-border trade, smart regulation and support for innovation, there is not a chance in the world that we can hit the mark of the UN’s 2030 Agenda,” he stated.

USCIB President and CEO Peter Robinson took the opportunity of the 2018 award gala to note the 70th anniversary of the landmark Universal Declaration of Human Rights, which he called “a fundamental recognition of our shared humanity and the equality of every person in the eyes of God and in the eyes of their fellow men and women.” He told gala attendees that “USCIB members stand united in support of human rights, and we pledge to do all we can in the ongoing struggle to defend human dignity.”

Robinson also introduced a new USCIB video highlighting the organization’s policy expertise, close working relationship with decision makers and links to key international business organizations. (See video link below.)

But the evening belonged to Polman, who recently announced plans to retire from the helm of Unilever following a long career with the company. “There’s no reason for 840 million people to go to bed hungry every night, not even knowing if they [will] wake up the next day. There’s no reason for us to waste 30 to 40 percent of the food that we produce. There’s no reason to value a dead tree more than a tree that’s alive, taking the lungs out of the world.”

John Denton, secretary general of the International Chamber of Commerce, which Polman chairs, praised the Unilever CEO’s generosity, grace and openness as a person.

The Unilever chief used his experience transforming his company’s social and environmental footprint as an indication of what could be done if corporate leaders put their minds to it. “Unilever’s model is indeed decoupling our growth from environmental impact, but also to maximize our overall social impact. At a time when trust is low, we think the only way to regain that is with transparency. Transparency builds trust, which is the basis for prosperity.”

He continued: “By having that simple focus, you will soon discover that you’re better off as well, We are getting two million people [applying for jobs at Unilever] every year, in fact the third-most on LinkedIn, after Google and Apple.”

Established in 1980, USCIB’s International Leadership Award is presented annually to a leading CEO, international figure or institution, recognizing outstanding contributions to global trade, finance and investment, and to improving the global competitive framework in which American business operates. Recent recipients have included Ajay Banga of Mastercard and Randall Stephenson of AT&T. More on the annual event is available at www.uscibgala.com and photos from the event are here.

USCIB International Business Magazine: Winter 2018 Issue

The Winter 2018 issue of USCIB’s quarterly International Business magazine is available here. The issue features a timely column by USCIB President and CEO Peter Robinson titled, “Upholding Human Rights Requires Strong Partnerships.” The issue also features news stories on USCIB’s leadership in promoting food security and nutrition partnerships, the U.S.-China trade conflict, and USCIB’s artificial intelligence priorities, plus news from our global network–Business at OECD, the International Organization of Employers and the International Chamber of Commerce.

“International Business,” USCIB’s quarterly journal, provides essential insight into major trade and investment topics, a high-level overview of USCIB policy advocacy and services, USCIB member news and updates from our global business network.

Subscribe to USCIB’s International Business Magazine

Subscriptions to “International Business” are available free upon request to representatives of USCIB member organizations. Contact us to subscribe.

Non-members may subscribe to “International Business” and other USCIB print publications at an annual rate of $50 (U.S.) for domestic delivery, or $75 for overseas delivery. Contact us to subscribe. USCIB’s annual report, studies from the United States Council Foundation and related publications are included with your paid subscription.

Our free electronic newsletter, “International Business Weekly,” provides regular updates on USCIB’s major activities and priorities. Click here to view a sample issue. Click here to subscribe.

We welcome outside submissions and inquiries regarding our publications – send them to news@uscib.org.

We welcome advertising in International Business magazine — special discounted rates for USCIB member organizations! Contact Kira Yevtukhova (kyevtukhova@uscib.org) for more information.

USCIB in the News: Taxes, Trade and Tariffs

USCIB’s voice and views were reflected in many of the top stories of the past several months, which saw a heavy focus on taxes, trade and tariffs. USCIB and its global network were featured prominently in numerous stories covering NAFTA modernization, China tariffs and the OECD’s work on global tax policy.

In October, USCIB CEO and President Peter Robinson contributed a letter to the Financial Times in response to an editorial urging action on the digital divide. In his letter, Robinson noted that “public-private partnerships are indeed needed to broaden access to the internet, and companies are already moving ahead in this regard, in addition to taking action on their own.”

In discussing G20 trade tensions, USCIB Senior Vice President Rob Mulligan sat down with BBC World News to do a live television interview. Mulligan said that Trump is right to address the balance of trade between the U.S. and China, but that tariffs aren’t the answer and will ultimately cause higher prices and job losses.

To read more of USCIB activity in the media, please visit this link.

USCIB Submits Negotiation Objectives for US-EU Trade Deal

USCIB submitted negotiation objectives for a U.S.-EU Trade Agreement to USTR.
The EU countries together make up the number one export market for the U.S., with goods exports to the EU in 2016 totaling $269.6 billion, constituting 18.6% of total U.S. goods exports.

 

USCIB submitted negotiation objectives for a U.S.-EU Trade Agreement to the United States Trade Representative (USTR) on December 11. The submission was filed in response to USTR’s request for comments and emphasized the importance of a comprehensive negotiation, covering not only market access for goods, but also critical services issues.

The USTR request for comments follows the Trump administration’s announcement to Congress on October 16 of its intention to initiate negotiations on a U.S.-EU Trade Agreement. USCIB supports negotiation of a comprehensive trade agreement with the EU 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. USCIB priority issues for negotiation of a U.S.-EU agreement include investment, customs and trade facilitation, express delivery services, improved regulatory cohesion, digital trade, intellectual property, government procurement and SOEs, and financial services.

“The EU is an important trade partner for the United States,” said USCIB Senior Director for Investment, Trade and Financial Services Eva Hampl. “USCIB members see the value of common approaches toward establishing a more integrated and barrier-free transatlantic marketplace. Regulatory discrimination and differentiation across the Atlantic is an increasingly frustrating obstacle to trade, investment and the ability to conduct business.”

USCIB supported the negotiations of a comprehensive, high-standard U.S.-EU trade agreement, the Transatlantic Trade and Investment Partnership (TTIP), which commenced in 2013 and aspired to eliminate tariff and no-tariff barriers on goods and services trade between the U.S. and the EU. These negotiations were halted by the current administration, but the range of issues that were on the table at the time, ranging from strong investment protections, to increased trade facilitation, and regulatory coherence, continue to be of great importance to our members.

The EU countries together make up the number one export market for the United States, with goods exports to the EU in 2016 totaling $269.6 billion, constituting 18.6% of total U.S. goods exports. U.S. goods and services trade with the EU totaled nearly $1.1 trillion in 2016, with exports totaling $501 billion. The United States also has a surplus in services trade with the EU, totaling $55 billion in 2016. According to Hampl, a successful trade agreement with the EU should cover not just market access for goods, but also address important services issues.

USCIB Contributes Comments to UN on Digital Cooperation

USCIB filed comments to the office of the United Nations Secretary General to identify good examples and propose modalities for working cooperatively across sectors, disciplines and borders to address challenges in the digital age.
USCIB’s comments noted that stakeholder inclusion can lower the risk of unintended consequences and increase legitimacy and adoption of policies.

 

USCIB filed comments to the office of the United Nations Secretary General on November 28 in his request for public comments “to identify good examples and propose modalities for working cooperatively across sectors, disciplines and borders to address challenges in the digital age.” The comments will be presented to the High-Level Panel on Digital Cooperation, which was established by the UN Secretary General in July 2018. The Panel will seek to conduct a broad engagement and consultation process, resulting in a final report with actionable recommendations in 2019.

To inform the HLPDC deliberations, the Secretariat launched a wide-ranging consultation process to gather the views of governments, the private sector, civil society, international organizations, the technical and academic communities and other relevant stakeholders.

“USCIB believes that the multistakeholder model for Internet governance continues to be the best method to enable the whole-of-society/whole-of-government consideration of digital economy issues,” said Barbara Wanner, who leads USCIB work on ICT policy. “Given the rapid pace of technological change, governments need the perspectives provided by business, technical community, and civil society to better understand what policies are commercially viable, technically feasible, and offer adequate personal privacy protections. The inputs of all stakeholders produce a flexible policy environment critical to empowering the rapidly evolving digital economy.”

USCIB’s comments also noted that stakeholder inclusion can lower the risk of unintended consequences and increase legitimacy and adoption of policies. Top-down government-imposed policies and regulations often cannot keep pace with technological breakthroughs and can serve as a drag on development and innovation, and potentially infringe upon human rights.

 

USCIB Champions Business Partnership in Migration Policy

Well-managed, migration is a vehicle for fulfilling personal aspirations, for balancing labor supply and demand, for sparking innovation, and for transferring and spreading skills.
Unduly closing borders to migrants is detrimental to business needs at all skills levels. Thus, the overarching goal of the private sector is a regulatory environment in which labor migration policies support business development to create job opportunities and economic prosperity.

 

The Global Forum on Migration and Development (GFMD) and UN Global Compact on Migration (GCM) Summit were held back-to-back in Marrakech, Morocco December 5-11. USCIB Senior Counsel Ronnie Goldberg represented USCIB and the International Organization of Employers (IOE) as part of the Business Mechanism to the GFMD at both meetings.

The GFMD Business Mechanism was the primary vehicle through which the private sector contributed expertise and advised governments on aspects of labor migration policy pertaining to select provisions of the GCM, specifically those dealing with flexible pathways for regular migration, responsible recruitment and skills mobility and development.

IOE President Erol Kiresepi was also active during the Summit, presenting Business Mechanism views and commitments during the Opening Session of the Summit.

Goldberg participated in two side events: one as panelist on the Implementation of the GCM and another as moderator at a USCIB co-sponsored event Partnering with the Private Sector: The GCM and Business.

The Partnering with the Private Sector side-event took place on December 8, co-organized by IOE and PMI, and highlighted the crucial role the private sector plays in ensuring safe and orderly migration. As such, side-event participants advocated for a transparent legal framework to support business environments conducive to economic growth and development.

“Clear and well-implemented migration policies are an integral part of a regulatory framework conducive to economic growth and development,” said Goldberg. “Well-managed, migration is a vehicle for fulfilling personal aspirations, for balancing labor supply and demand, for sparking innovation, and for transferring and spreading skills. It also can provide  protection against unethical recruitment that could result in human trafficking and forced labor,” she added.  “Unduly closing borders to migrants is detrimental to business needs at all skills levels. Thus, the overarching goal of the private sector is a regulatory environment in which labor migration policies support business development to create job opportunities and economic prosperity.”

USCIB Washington Update: September, October, November 2018

Highlighting Key Activities, September, October, November 2018

During the months of September, October, and November 2018, USCIB Staff met with Alan Wolff, WTO Deputy Director General, Andrew Haviland, Charge d’Affaires, U.S. Mission to the OECD Katherine Tai, House Ways and Means, Nasim Fussell, Senate Finance, Christina Kopitopolous, USTR, submitted significant comments for the National Trade Estimate/1377 Report and on China’s WTO Compliance, launched a new Anti-Illicit Trade Committee, weighed in on the proposed European Digital Services Tax across Europe, and much more. Below are summaries of these and other highlights from the activities of USCIB in Washington, D.C. over the last three months. If you have any questions or comments, or want more information on a specific topic, please contact any of the staff members listed at the end of this brief.

Table of Contents:

Trade and Investment – Opening Global Markets for Trade and Investment

ICT Policy – Promoting Sound Policies for New Technologies

Tax – Advancing Tax Policies that Promote U.S. Competitiveness

Customs and Trade Facilitation – Reducing Barriers and Costs from Customs and Border Control Practices

Anti-Illicit Trade – Promoting Strong International AIT Leadership and Advocating a Comprehensive and Multi-Disciplinary Approach to AIT

China – Supporting Policies and Relationships that Enhance U.S.-China Business

Competition – Creating Global Legal Practices for an Open and Competitive Business Environment

Membership

Upcoming Events

Staff List

Trade and Investment – Opening Global Markets for Trade and Investment

USCIB Trade and Investment Committee Meets with Katherine Tai, Ways & Means: At the September 13 meeting of the USCIB Trade and Investment Committee Katherine Tai, Chief Trade Counsel, Democratic Staff, House Committee on Ways and Means, provided an off-the-record overview of where things stand in the House on NAFTA, 232 tariffs, 301 tariffs and China trade issues more broadly, the WTO, and other potential trade agreements. The Committee was also joined by Nasim Fussell, Deputy Chief International Trade Counsel for the Senate Finance Committee. Nasim provided the Senate’s perspective on NAFTA negotiations timing, 232 and 301 tariff issues, the second phase of the MTB process, and the WTO. At the meeting, Rob Mulligan also began a discussion on the development of a USCIB Trade and Investment Agenda for 2019, as well as a draft paper on WTO reform.

WTO Deputy DG Alan Wolff Meets with USCIB Members: On October 19, 2018, Ambassador Alan Wolff, Deputy Director General of the WTO, met informally with USCIB member companies to review the full range of issues, developments and challenges around the World Trade Organization. Amb. Wolff, an active member of USCIB’s Trade and Investment Committee in his days as a leading Washington trade lawyer, was, as always insightful, relevant, and candid in his remarks. Issues discussed included WTO reform, China’s role in the WTO, the impact of US Government approaches to the WTO, and possibilities for negotiation breakthroughs.

USCIB Submits Comments on China 301 Tariffs and Testifies: On September 6, 2018, USCIB submitted extensive comments on the Trump administration’s proposed $200 billion list of tariffs on imports from China, following up on earlier submissions in response to the quickly escalating trade conflict between the United States and China. USCIB and its members continue to be very concerned about the potential unintended consequences these proposed tariffs of 10 or 25 percent on $200 billion worth of Chinese imports are likely to have, affecting many sectors vital to the U.S. economy and jobs. While China’s forced technology transfer requirements and other abusive practices harm U.S. competitiveness, the administration’s sweeping tariffs endanger the U.S. economy in similar ways. USCIB also signed on to a broader industry statement appealing to the Trump administration not to proceed with the proposed tariffs, saying the effort would likely backfire against U.S. businesses and workers. At the end of August, USCIB Senior Director for Investment, Trade and Financial Services Eva Hampl provided testimony to the 301 Committee chaired by the U.S. Trade Representative’s office, expressing member concerns.

Members Meet with Andrew Haviland, Charge d’Affaires, U.S. Mission to the OECD: On October 11, 2018, Andrew Haviland, Charge d’Affaire, U.S. Mission to the OECD, met with a large group of USCIB member representatives from various committees. Following an update on the OECD’s ongoing work and U.S. priorities from Mr. Haviland, members were able to ask questions regarding the positions and work of the U.S. Mission, as well as the role of Business at OECD when engaging with the OECD and other OECD members on business priorities.

USCIB Advocates for Digital Trade and Foreign Investment at OECD: USCIB Senior Director for Investment, Trade and Financial Services Eva Hampl was in Paris the week of October 22, 2018, participating in investment and trade related meetings at the OECD. On October 22, the OECD hosted its annual Global Forum on Trade, which focused on Trade in the Digital EraThe agenda included sessions on digital transformation and what it means for trade, measuring digital trade, digital trade and market openness, data flows, and discussing priorities for trade policy makers. Hampl participated in the event as a panelist in the session on data flows, which also included Deputy Assistant USTR for Telecommunications Policy Jonathan McHale. The following day Hampl has several speaking roles starting with the Business at OECD consultation with the OECD Investment Committee. Business at OECD had submitted three short papers covering issues such as investment policies related to national security, the importance of a well-designed investment protection mechanism and foreign direct investment qualities. Hampl also attended a joint meeting of the OECD Trade and Investment Committees, which included a presentation on the OECD Digital Services Trade Restrictiveness Index (STRI) by the OECD. At the consultation, Hampl made an official intervention on behalf of Business at OECD, expressing USCIB’s support of the joint meeting, and raising some of USCIB’s priority issues, including the multilateral trading system (WTO reform), state-owned enterprises, and digital trade. Additionally, Hampl served as a discussant on behalf of Business at OECD at a Policy Network Meeting on the Foreign Direct Investment (FDI) Qualities, during which she expressed general support for the project and underlined the importance of investment. Hampl also had the opportunity to underline the importance of an open investment environment and concern that recent trends of protectionist policies are harmful to business during her role as discussant in the First Roundtable on Investment and Sustainable Development.

Donnelly on Front Lines at UNCTAD Defending Pro-Investment Policies and ISDS: Shaun Donnelly was one of only three hearty business reps to spend part or all of the week of October 22-26, 2018, in Geneva at the World Investment Forum (WIF), hosted by the UN Conference on Trade and Development (UNCTAD. Shaun was the keynote speaker for business in the important High-Level Experts group meeting on International Investment Agreements (IIAs) where he forcefully defended strong investment agreements and Investor-State Dispute Settlement (ISDS) provisions. His remarks can be read here. He also was the single business panelist on a side event organized by the World Bank affiliate International center for Settlement of Investment Disputes (ICSID) on proposed reforms of ICSID’s rules and procedures. Shaun was also able to offer sharp question and criticisms of the EU’s much-ballyhooed Multilateral Investment Court proposal as a proposed but deeply flawed alternative to ISDS. Not clear how may converts Shaun might have made among developing country officials but he was able to give them some alternative perspectives on important and challenging investment policy issues. The UNCTAD Secretariat expressed great appreciation for USCIB attending and offering clear, candid business perspectives.

USCIB Consults with U.S. Investment Policy Leaders: Shaun Donnelly and Eva Hampl have stayed in close contact with key investment policy officials at State and USTR over the fall season. They met September 20 with Deputy Assistant USTR for Investment policy Lauren Mandell to NAFTA and Korea KORUS investment negotiations. Shaun and Eva met twice this fall with State department Office of Investment Affairs (“OIA” in State’s Economic and Business Bureau) leading up to and then following up afterwards on the mid October OECD investment Committee meetings as well as other international investment policy issues including the review of Investor-State Dispute Settlement (ISDS) provisions underway in the UN Commission on International Trae Law (UNCITRAL). Those senior investment policy officials have been consistently open to our views and questions.

USCIB Discusses Anti-Corruption Issues with State Department: On October 2, 2018, USCIB joined a group of business associations as well as the AFL-CIO and Coalition for Integrity in a meeting with Principal Deputy Assistant Secretary of State for Economic and Business Affairs Brian McFeeters to discuss our efforts in expanding the signatories to the OECD Anti-Bribery Convention to all G20 countries. The meeting was a follow up to a joint letter sent to president Trump in August, requesting that the Administration take major steps this year to combat international bribery and corruption. The message of the group was to underline the importance of the Convention, noting that it needed to be strengthened in two ways. First, though enforcement of the Convention in some countries has been gradually increasing, the overall level of enforcement is not uniform and is weaker than by the United States. Second, countries that have become major players in the international economy, notably China and India, are not signatories.

Hampl Discusses OECD Accession at PhRMA Meeting: On November 1, 2018, Eva Hampl, Senior Director, Investment, Trade and Financial Services, presented on OECD accession issues to a group of pharmaceutical companies and associations. Hampl highlighted USCIB’s advocacy role at the OECD as a member of Business at OECD, provided an update on the recently concluded accession process of Colombia, as well as on upcoming countries, which include Brazil, Argentina, Peru, Romania, Bulgaria, and Croatia. At this time, none of the six countries have officially been invited to begin the accession process, which will require the approval of 25 OECD Committees. USCIB has been actively involved in providing input into Colombia’s accession process via Business at OECD (BIAC), the official business voice at the OECD. Moving forward, USCIB will play an active role in providing U.S. business input to the OECD on any upcoming accession processes.

Donnelly Keynotes AmCham Annual Dinner in Vancouver: USCIB Vice President Shaun Donnelly was the keynote speaker at AmCham Canada /Pacific’s first-ever annual dinner in Vancouver October 16. Donnelly offered an inside-the-beltway business perspective on the long-running NAFTA modernization negotiations and the resultant new “U.S. /Mexico /Canada” agreement or USMCA. Canadian business leaders in the vibrant new Vancouver AmCham are generally supportive of NAFTA and hopeful about the new USMCA, though clearly worried about the “section 232” U.S. tariffs on Canadian steel and aluminum. Former Canadian Trade Minister Stockwell Day, now a leading Vancouver-based trade lawyer joined Shaun in a post dinner Q and A session to round out the evening. While in Vancouver, Shaun was also guest of honor at a reception hosted by the U.S. Consul General where he delivered an abbreviated, informal version of his NAFTA/USMCA comments.

USMCA Investment Provisions Under the Microscope at Sidley: Shaun Donnelly was the business speaker, joining senior Canadian and Mexican Government investment negotiators on an off-the-record panel co-hosted by USCIB member law firm Sidley Austin and the American Society of International Law (ASIL) on October 18. The panel “USMCA – What Does NAFTA 2.0 Mean for Investor Protection in North America and Beyond?” drew a full house of trade people, diplomats, and lawyers. Sidley Partner Marinn Carlson moderated the session and kept it moving with some very challenging questions. Shaun was candid in pointing out USCIB and more general business concerns with some of the changes in investment provisions from NAFTA to USMCA. The U.S. government declined invitations to participate.

 USCIB Talks Trade and Essential Security at Hudson Roundtable: Shaun Donnelly was an active participant in a very interesting Hudson Institute roundtable discussion November 28, focused on trade and national security, more specifically on the U.S. Government’s use of “Section 232” trade sanctions (thus far imposed on imported steel and aluminum but threats on imported autos are intensifying) based on threats to U.S. “essential security.” Senator (and former USTR where Shaun was a key Assistant) Rob Portman and EU Ambassador David O’Sullivan offered great keynote remarks. Shaun reflected USCIB’s strong positions on opposing any abuse (by the U.S. government or others) of these essential security provisions in the WTO, other agreements or in U.S. trade law. The group also discussed prospects for U.S.-EU trade agreement, perhaps limited to industrial good or perhaps much broader. Views on prospects for such agreements ranged widely around the table. Drawing on his experience as Assistant USTR for Europe under USTRs Portman and Schwab, Shaun was among the more cautious commentators on prospects for quick, easy U.S.-EU deals.

ICT Policy – Promoting Sound Policies for New Technologies

USCIB Members Engage U.S. Government Officials in Discussions about Policies Related to Artificial Intelligence, Privacy, Cybersecurity at the OECD, G20/B20, and ITU Plenipotentiary Meeting: The ICT Policy Committee Meeting on September 27 featured discussions with U.S. Government officials from the Departments of State, Commerce, and the White House Office of Science and Technology. The wide-ranging dialogue focused on policy priorities with respect to Artificial Intelligence (AI) in work underway at the OECD Committee on Digital Economy Policy as well as the horizontal OECD Going Digital Project. Members also discussed their inputs to the B20 Digital Economy and Industry 4.0 Task Force Report and how those would be reflected in the October 4-5 Summit in Buenos Aires, Argentina. Concerning the request for comments on Consumer Privacy Protections by the Commerce Department’s National Telecommunications and Information Administration (NTIA), members emphasized the importance of realizing greater interoperability in global privacy regulations. Finally, members discussed the importance of coordinating with Inter-American countries at the ITU Plenipotentiary, October 29-November 16 in Dubai, UAE on issues pertaining to governance of the ITU, Internet-related issues, and cybersecurity.

USCIB Catalogs 90 Pages of Foreign Trade Barriers for Annual National Trade Estimate/Section 1377 Report to USTR: On October 17, USCIB submitted comments concerning significant barriers to U.S. exports of goods, services, and U.S. foreign direct investment for inclusion in the annual National Trade Estimate (NTE) report. Pursuant to Section 1377 of the Omnibus Trade and Competitiveness Act of 1998 (19 U.S. C. Section 3106) and as requested by USTR’s Federal Register notice, we also included comments concerning the operation and effectiveness of U.S. telecommunications trade agreements. This 90-page catalog details foreign trade barriers to U.S. exports to the following countries: Argentina, Australia, Belarus, Brazil, Canada, Chile, China, Colombia, Costa Rica, Dominican Republic, Ecuador, Egypt, El Salvador, European Union, Fiji, France, Germany, Ghana, Greece, Gulf Cooperation Council, India, Indonesia, Israel, Japan, Kazakhstan, Kenya, Korea, Latin America Malaysia, Mexico, Middle East and North Africa, the Netherlands, New Zealand, Nigeria, Norway, Pakistan, Peru, Philippines, Russia, Singapore, South Africa, Sweden, Tanzania, Thailand, Tonga, Turkey, Uganda, the United Kingdom, Uruguay, and Vietnam.

USCIB Members Continue to Advocate for GDPR-Compliant Policy Framework and Data Access at ICANN 63: ICANN 63’s Annual General Meeting (AGM) wrapped up on October 25 in Barcelona, Spain. Barbara Wanner, USCIB Vice President for ICT Policy, and members from AT&T, Amazon, BT, Facebook, Google, Microsoft, The Walt Disney Company, Time Warner, Verisign, and Verizon joined some 3,000 stakeholders to address key issues in management of the domain name system. In particular, USCIB members actively contributed to work underway to develop a formal policy to ensure that ICANN and the industry of more than 1,000 generic top-level domain (gTLD) registries and registrars meet existing ICANN contractual requirements concerning the collection of registration data as well as comply with the EU General Data Protection Regulation (GDPR). ICANN’s proposed Draft Framework for a Possible Unified Access Model for Continued Access to Full WHOIS Data (UAM) also was in the spotlight. Under pressure from ICANN’s Business Constituency and Intellectual Property Constituency – both of which include USCIB members — governments, and other stakeholders, ICANN developed the UAM as a possible approach to enable third-party access to non-public WHOIS data for legitimate law enforcement, consumer protection, brand management, and intellectual property (IP) protection purposes. Wanner serves on the Business Constituency’s Executive Committee.

USCIB Urges the Administration to Pursue Greater Interoperability Among Global Privacy Regimes: On November 8, USCIB responded to a request for comments on Approaches to Consumer Privacy from the Commerce Departments National Telecommunication and Information Administration (NTIA). USCIB members supported the administration’s high-level goal to develop mechanisms that realize greater interoperability among international privacy regimes. Specifically, members applauded NTIA for recognizing the need to bridge regulatory differences so there is less fragmentation, data flows seamlessly, and the digital economy continues to evolve. In pursuing development of an interoperable approach, however, it is imperative that we realize an appropriate balance so that privacy frameworks promote consumer/user trust in data-driven technologies while at the same time enabling companies and organizations to use and transfer data in innovative ways that benefit society, USCIB members urged.

USCIB Members Push Back on Top-Down Cybersecurity-Related Regulation, Advocate a Risk-Based Approach in IGF Workshop: French President Emmanuel Macron opened the three-day IGF on November 12 at UNESCO, depicting a digital economy fraught with danger from cyber-attacks, the proliferation of hate speech, and anti-democratic forces. He urged development of a “better model” featuring regulation of the Internet and its actors. USCIB members pushed back on this top-down approach in a special security-focused workshop on November 14, “Approaches to a Wicked Problem: Stakeholders Promote Enhanced Cooperation and Collaborative, Risk-Based Frameworks of Regional and National Cybersecurity Initiatives,” co-organized by USCIB and Oxford Martin School. The overall aim of the workshop was to provide insights into how to build national and regional cybersecurity capacity that is risk-based to enable nimble responses to security challenges. USCIB members Claudia Selli (AT&T) served as moderator and Amanda Craig (Microsoft) contributed expert commentary, emphasizing that a risk-based, whole of government approach is most effective and necessary for development of a national cybersecurity strategy.

OECD’s CDEP Moves Going Digital Project Toward Completion, Advances AI Work: The November 14-16 meetings of the OECD’s Committee on Digital Economy Policy (CDEP) focused on advancing the OECD’s Going Digital project, showcasing the OECD’s analytical report on Artificial Intelligence as well as the work of a special AI Experts Group (AIGO), and featuring an intense and animated review of the Online Platforms Report and a Roundtable discussion on online platforms. Working under the aegis of Business at OECD (BIAC), USCIB members have been shaping development of the Going Digital Project for the past two years, offering insightful guidance on the project’s all-important Integrated Policy Framework. USCIB members from Facebook, Google, IBM, and Microsoft also are playing influential roles in the AI Experts Group to ensure that the group’s eventual policy recommendations align with USCIB members’ interests. The final outcomes of the Going Digital Project will be unveiled at a high-level summit on March 11-12, 2019 in Paris.

USCIB Members Uphold Multistakeholder Model for Internet Governance in Comments to UN High Level Panel on Digital Cooperation: At a time when the multistakeholder approach to Internet governance increasingly is under fire in some multilateral organizations, USCIB members underscored that the multistakeholder model continues to be the best method to enable whole-of-society/whole-of-government consideration of digital economy issues. This will continue to ensure that discussions are grounded in values of free speech and respect for human rights and the principles of transparency, accountability, and consensus will guide stakeholders, according to USCIB. On November 30, USCIB included these comments in its submission to the U.N. High-Level Panel on Digital Cooperation (HLPDC) aimed at informing the HLPDC’s deliberations. The HLPDC was established by the UN Secretary-General in July 2018 to advance proposals to strengthen cooperation in the digital realm and contribute to the broader global dialogue on how interdisciplinary and cooperative approaches can help ensure a safe and inclusive digital future.

Tax – Advancing Tax Policies that Promote U.S. Competitiveness

USCIB Continues Efforts to Oppose the Adoption of the Draft Directive on Digital Services Tax:  USCIB further engaged with the OECD and various European countries on the tax challenges of the digitalizing economy and the European Digital Services Tax. The OECD organized a “digital day” in Paris to further discuss business models and the direction of the OECD’s work on a long-term solution. Many USCIB members participated in this discussion. USCIB members have also met with this fall with a number of high-level European government officials to discuss the EU digital directives. These included meetings with Austria, Denmark, Finland, Ireland, Sweden, and the United Kingdom. We have also engaged with business representatives at our peer organizations in other countries. We are encouraging those organizations to continue to work with their governments to ensure continuing opposition to the DST. We have also had ongoing discussions with the U.S. Treasury and the Senate Joint Economic Committee, including participating in a panel organized by the JEC to brief Hill staff on the issues and concerns of U.S. business.

USCIB will be continuing to pursue opportunities to express our concerns and ensure that any changes to the standards applicable to taxation of the digitalized economy reflect the concerns of U.S. business. While many countries have objected to the draft directives and the EU requires unanimity to proceed, it is important that USCIB continue to make its case about the potential damage from these directives. The OECD is working on a long-term solution. Many countries expressed a willingness to work within the OECD to achieve a long-term solution. USCIB also supports a consensus approach and believes that the OECD is the best place for working on such a consensus. The EU will be holding an Ecofin meeting on December 4th to consider this issue again (agreement was not reached at the Ecofin meeting held on November 6th). If agreement is not reached on December 4th, that will likely give the OECD some space to work on a long-term solution, since agreement on the EU directive is less likely in 2019 for a variety of political reasons.

USCIB Submits Comment Letters to Regulators: The Tax Committee dedicated significant resources to providing comments on a variety of topics. (See the recent accomplishments section of the USCIB Tax Committee page.) These comments included letters on: proposed regulations concerning the repatriation tax under section 965; proposed regulations concerning Global Intangible Low-Taxed Income under section 951A; the Platform for Collaboration on Tax’s toolkit on Offshore Indirect Transfers; and the OECD’s consultation on Financial Transactions.

USCIB Participates as an Observer in the UN’s Committee of Tax Experts: The UN Committee of Tax Experts held its seventeenth session in Geneva from October 16th through the 19th. The agenda covered updates to the UN Manual on Transfer Pricing; updates to the UN Model Income Tax Treaty (including, the taxation of software royalties, and the taxation of CIVs); development of a handbook on dispute avoidance and resolution; environmental tax issues; updates to the Extractives Handbook; the tax consequences of the digitalizing economy; updates to the manual on treaty negotiation; capacity building; and the taxation of development projects. The background papers presented and discussed at the meeting are here. USCIB is providing input on areas of interest to the USCIB Tax Committee including: the taxation of the digitalizing economy, the taxation of software royalties and taxation of carbon.

Customs and Trade Facilitation – Reducing Barriers and Costs from Customs and Border Control Practices

USCIB Customs E-Commerce Sub-Committee Meets for First Time: On Thursday, October 18, 2018, members of the USCIB Customs and Trade Facilitation Committee met under the auspices of a new, USCIB Customs E-Commerce Sub-Committee. The Sub-Committee will focus on customs related e-commerce issues and serve as a way to screen and discuss e-commerce issues informally before bringing problems and recommendations to the broader Customs and Trade Facilitation Committee. If you are interested in participating in this group, please let Megan Giblin know at mgiblin@uscib.org.

Customs Committee Meets with Christina Kopitopolous, USTR, Ken Kennedy, DHS ICE: On Wednesday, November 28, 2018, the USCIB Customs and Trade Facilitation Committee received an update on Forced Labor issues from Ken Kennedy, Senior Policy Advisor for Forced Labor Programs at the U.S. Department of Homeland Security Immigration & Customs Enforcement. Following this discussion, the Committee heard from Christina Kopitoplolous, USTR Director for Customs and Trade Affairs. Christina provided her assessment of customs issues at the WCO, WTO, and domestically.

Anti-Illicit Trade – Promoting Strong International AIT Leadership and Advocating a Comprehensive and Multi-Disciplinary Approach to AIT


USCIB Launches Anti-Illicit Trade Committee, David Luna as Chair: On Tuesday, September 11, USCIB held the inaugural meeting of its new Anti-Illicit Trade Committee, chaired by David Luna of Luna Global Networks & Convergence Strategies, LLC. In addition to laying out the committee’s goals and the beginnings of a Plan of Action, the committee heard the latest on Anti-Illicit Trade work at the OECD from the OECD’s Stephanie Jacobzone, Jack Radisch, and Piotr Stryszowski. The Committee met again on Thursday, November 29. At the November meeting, members heard from Christa Brzozowski, DHS Deputy Assistant Secretary, Trade and Transport, for an update on Anti-Illicit Trade work at the OECD. Following this briefing, members heard from Steven Shapiro, FBI Unit Chief, Criminal Investigative Division, Intellectual Property Rights Unit, National Intellectual Property Rights Coordination Center. Steven provided an overview of his team’s work at the IPR Center and expressed his interest in additional engagement with the USCIB Anti-Illicit Trade Committee.

China – Supporting Policies and Relationships that Enhance U.S.-China Business

USCIB Submits Comments on China’s WTO Commitments and Testifies: As part of the annual request by the U.S. Trade Representative for comments on China’s compliance with World Trade Organization (WTO) commitments and notice of public hearing, USCIB submitted commentson September 21 reflecting USCIB members’ feedback and concerns. USCIB’s submission highlights concerns that arise in selected horizontal areas that transcend industry sectors, including IT security measures, China’s antimonopoly law, intellectual property rights, market access, national treatment and non-discrimination, the regulatory environment, standards, state-owned enterprises, customs and trade facilitation, taxation, labor laws, certification, licensing, and testing barriers. USCIB’s submission also addresses issues related to specific industry sectors that face problems in China, including agricultural biotechnology, audiovisual, chemicals, electronic payment access, express delivery services, recoverable materials, software, and telecommunications. Following USCIB’s submission, USCIB Senior Director for Investment, Trade and Financial Services Eva Hampl provided testimony on October 3 to the interagency Trade Policy Staff Committee (TPSC).

USCIB Meets with DOJ and FTC to Discuss China AML Issues: In a follow up to USCIB’s submission on China’s compliance with WTO Commitments, USCIB on November 19 met with officials from the U.S. Department of Justice (DOJ) as well as the U.S. Federal Trade Commission (FTC) to discuss current issues business faces in China in relation to the application of China’s anti-monopoly law (AML). As noted in USCIB’s public comments, Chinese antitrust enforcement authorities continue to use of the AML as a tool to advance industrial policy goals rather than to protect competition. U.S. companies have repeatedly experienced Chinese regulators using AML enforcement absent sufficient economic proof of market power or anti-competitive harm or any transparency regarding analyses that may have been conducted. In addition, anecdotal evidence indicates that the AML enforcement agencies often disregard basic norms of fairness, due process, and transparency.

Competition – Creating Global Legal Practices for an Open and Competitive Business Environment

 USCIB Holds Joint ICC/USCIB Meeting on Global Competition Policy in NY: On September 5, against the backdrop of fast-changing business and policy practices with respect to antitrust and consumer protection, the USCIB Competition Committee held a joint meeting with the International Chamber of Commerce (ICC) Competition Commission in New York. Participants in the joint ICC/USCIB meeting represented many jurisdictions, including Brazil, France, Germany, Mexico, Poland, the United Kingdom and the United States. The keynote speaker was Bruce Hoffman, director of the Bureau of Competition at the U.S. Federal Trade Commission (FTC). Hoffman discussed the latest developments of antitrust policy with USCIB members, including for competition policy litigation and enforcement in the U.S., as well as FTC hearings on the state of competition law and policy that began in Washington, D.C. in September. USCIB Competition Committee Chair Dina Kallay (Ericsson) and USCIB Competition Committee Vice Chair Jennifer Patterson(Arnold & Porter) led participants through an agenda that included updates on issues including mergers, due process, cartels, the International Competition Network (ICN), and the Multilateral Framework on Procedures, on which USCIB and ICC recently submitted a joint statement.

Membership

  • Membership Meetings: The USCIB membership department and policy staff traveled to the Bay Area to meet with representatives from member companies Visa, Uber, Salesforce, Oracle, Intel and Ripple Labs to develop our understanding of their policy priorities for the next year and beyond, and to see how USCIB can better serve their policy needs. In addition, the USCIB membership department and USCIB President and CEO Peter Robinson met with representatives from member companies Citigroup, Hanesbrands, General Mills, Koch Industries, AT&T and DIAGEO.
  • New Members: USCIB has recently welcomed Astellas, Cruise Automation and Steptoe & Johnson LLP as new members.

Upcoming Events:

    • UNFCCC COP24, Katowice, Poland – December 3-14
    • USCIB Trade and Investment Committee Meeting, Washington, D.C. – December 4
    • 2018 USCIB International Leadership Award Dinner, New York – December 11
    • USCIB ICT Policy Committee Meeting, Washington, D.C. – December 13
    • USCIB Environment Committee and International Product Policy (IPP) Working Group Joint Meeting, New York – December 19
    • ACEP Som-1, Santiago, Chile – February 23 – March 8
    • 4th UN Environment Assembly (UNEA4), Nairobi, Kenya – March 11-15
    • Going Digital: OECD Insights for a Changing World, Washington, D.C. – March 29
    • APEC SOM 2, Vaplaraiso, Chile – May 6-18
    • ECOSOC 2019 Session, Geneva, Switzerland – May 29 – 31
    • OECD/BIAC/USCIB Tax Conference, Washington, D.C. – June 3-4

USCIB Policy and Program Staff

 

USCIB Policy and Program Staff

Rob Mulligan
Senior Vice President, Policy and Government Affairs
202-682-7375 or rmulligan@uscib.org

Erin Breitenbucher
Senior Policy and Program Associate and Office Manager, Washington
202-682-7465 or ebreitenbucher@uscib.org

Norine Kennedy
Vice President, Strategic International Engagement, Energy and Environment
212-703-5052 or nkennedy@uscib.org

Shaun Donnelly
Vice President, Investment and Financial Services
202-682-1221 or sdonnelly@uscib.org

Megan Giblin
Director, Customs and Trade Facilitation
202-371-9235 or mgiblin@uscib.org

Carol Doran Klein
Vice President and International Tax Counsel
202-682-7376 or cdklein@uscib.org

Ronnie Goldberg
Senior Counsel
212-703-5057 or rgoldberg@uscib.org

Mia Lauter
Policy and Program Associate, New York
212-703-5082 or mlauter@uscib.org

Eva Hampl
Senior Director, Investment, Trade and Financial Services
202-682-0051 or ehampl@uscib.org

Mike Michener
Vice President, Product Policy and Innovation
202-617-3159 or mmichener

Alison Hoiem
Senior Director, Member Services
202-682-1291 or ahoiem@uscib.org

Chris Olsen
Policy and Program Associate, Washington
202-617-3156 or colsen@uscib.org

Gabriella Rigg Herzog
Vice President, Corporate Responsibility and Labor Affairs
212-703-5056 or gherzog@uscib.org

Barbara Wanner
Vice President, ICT Policy
202-617-3155 or bwanner@uscib.org

Jonathan Huneke
Vice President, Communications and Public Affairs
212-703-5043 or jhuneke@uscib.org

Kira Yevtukhova
Communications Manager
202-617-3160 or kyevtukhova@uscib.org

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Update from the Field: Hunting for “Landing Zones” at Climate Change Conference in Poland

Norine Kennedy at COP24
COP24 is to finalize a so-called Paris Rulebook, which will provide implementation guidance on how countries put the Paris Agreement into action.
Crucial to business will be outcomes on carbon markets.

 

The 24th UN Framework Convention on Climate Change Conference of the Parties (UNFCCC COP24) began on Sunday, December 2 and will run through December 14 under the Presidency of Poland, in Katowice, Poland.  On Saturday night, the negotiating groups delivered a first round of outcomes to be taken up by the Ministers arriving for the 2nd week.  Many key business issues remain incomplete or “in brackets” in the current draft “Paris Rulebook,” intended to guide putting the Paris Agreement into action.  For the week ahead, high level government representatives will be seeking “landing zones” to resolve remaining substantial divisions.

Over 30,000 are in attendance here, including USCIB members Arkema, Chevron, Mars, Novozymes and Salesforce, joining USCIB staff Norine Kennedy and Mia Lauter in tracking the complex discussions, meeting with U.S. and other government delegations and partnering with key business groups.  Here in Katowice, the International Chamber of Commerce (ICC) serves as focal point for business, convening daily meetings to share intelligence and organizing the UNFCCC Business Day on December 6.

Sticking topics have included provision of how to treat compensation for loss and damage, financial support to developing countries for greenhouse gas reductions and technology cooperation, the design of elements relating to carbon markets and different rules and practices that would apply to developing and developed countries. Delegates are talking about the IPCC1.5 Special Report, worrying increases in greenhouse gas emissions and tensions in France sparked by the proposed fuel tax, since rescinded by the Government of France.

COP24 is to finalize a so-called Paris Rulebook, which will provide implementation guidance on how countries put the Paris Agreement into action.

“So far, negotiations have proceeded predictably, albeit too slowly to conclude in time,” observed Kennedy, who leads USCIB policy work on the environment and climate change. “The complexity of technical and political issues obscures the real challenge: mobilizing private sector investment and innovation at a pace and scale that would advance the UNFCCC and Paris objectives.”

According to Kennedy, the general feeling among delegates is that a fair amount of political will, particularly among high-level representatives and Ministers of Environment, will be required in order to successfully conclude.

“There is no one issue that is dominating conversations,” added Kennedy. “Rather, the sheer number of issues to be negotiated and the level of technicality those issues present is daunting for Parties to manage (or business representatives to track).”

The smaller than usual U.S. delegation here is led by Trigg Talley, and includes other State Department, Energy and EPA representatives.  Next week, Assistant Secretary of State Judy Garber and Wells Griffith (White House) arrive for the high-level portion of the negotiations.

Crucial to business will be outcomes on carbon markets. Countries seem to be falling into one of two camps:

  • The view of the U.S. is that any exchange – known as an ITMO (internationally transferred mitigation outcome) – should remain between the countries undertaking the transaction, and that both countries would agree their accounting and other arrangements accordingly.
  • Other parties take the view that ITMO approval should come through a centralized UNFCCC body, and that some share of the transactions (“a share of the proceeds”) should be allocated to a central fund or other UNFCCC-determined purpose.

Also crucial to business will be the potential adoption of the Silesian Declaration on Just Transition proposed by the Polish Presidency. Many parties support the Declaration, but others feel that they haven’t had enough time to examine the proposal.

“We are flagging the number of climate topics that are spilling into other forums and key issues, such as human rights and trade,” said Kennedy. “Following discussions with the U.S. Delegation here, USCIB has asked the State Department to stand firm against any intention to use participation in the Paris Agreement as a litmus test for trade policies among nations.”

Kennedy also observed that protesters and some social media accounts continue to complain about the presence of business at COP24, asserting that their involvement here constitutes a “conflict of interest” and interferes with the ability of governments to reach an ambitious agreement.  In the week ahead, USCIB members and staff will continue to express U.S. business priorities, working closely with the Administration to promote energy innovation and advance substantive business engagement.