USCIB Corporate Responsibility and Labor Affairs Committee Deliberates Specific Outcomes on Strategy, Policy Approaches

USCIB Director for Corporate Responsibility and Labor Affairs Ewa Staworzynska

The USCIB Committee on Corporate Responsibility and Labor Affairs (CRLA) met in Washington DC May 3-4 to discuss a wide range of issues faced by U.S. business in international fora. Committee chairs, David Barnes (IBM) and Tam Nguyen (Bechtel), opened the two-day meeting that included 35 member companies, U.S. government speakers, European partners and a guest speaker from AFL-CIO.

The meeting also served as an official introduction to the Committee’s two new vice chairs, Melissa Kopolow (Albright Stonebridge Group) and Ryan Larsen (Walmart), as well as the new USCIB Director for Corporate Responsibility and Labor Affairs Ewa Staworzynska.

Specific issues discussed by members over the course of the two-days included the OECD Guidelines for Multinational Enterprises (MNE Guidelines), the UN Biding Treaty for Business and Human Rights, the upcoming June International Labor Organization (ILO) Conference negotiations related to just transition and apprenticeships and proposed EU legislation. Members shared their feedback on strategic priorities and discussed how to further advance U.S. business’ perspective in global policy.

The meeting was the first time the Committee met in person since before the pandemic and member companies expressed their appreciation to the CRLA leadership and highlighted the importance of meeting in person. The meeting also reinvigorated the committee’s work; as a member-based organization, listening to members is the main priority for USCIB staff. The next CRLA Committee meeting will take place in the fall.

Competition

Trends and Challenges Facing U.S. Business:

  • The U.S. government continues to look to the International Competition Network (ICN) and the Organization for Economic Cooperation and Development (OECD) to foster international convergence and cooperation on competition law, including the coordination of cartel enforcement
  • S. companies need a unified voice to serve in both the ICN and OECD on competition law, international engagement, trade-related competition issues and mergers.

 

 

 

USCIB’s Response:

  • Through Business at OECD, USCIB serves as a strong voice for business at both the OECD and the ICN on international convergence and cooperation discussions.
  • Promote international legal policies that favor an open and competitive environment for U.S. business.
  • Monitor global competition developments and contribute industry’s perspective through USCIB’s network.
  • Advise U.S. government officials, including the Department of Justice and the Federal Trade Commission, on business positions concerning international antitrust issues and secure support for those positions in international forums.

Magnifying Your Voice with USCIB:

  • USCIB is the only U.S. business association formally affiliated with the world’s three largest business organizations where we work with business leaders across the globe to extend our reach to influence policymakers in key international markets to American business
  • Build consensus with like-minded industry peers and participate in off-the-record briefings with policymakers both home and abroad.

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Chair

Dina Kallay
Head of Antitrust (IPR, Americas & Asia-Pacific)
Ericsson

Vice Chair

Jennifer Patterson
Partner
Arnold & Porter

Staff

Alice Slayton Clark
VP, International Investment and Trade Policy
asclark@uscib.org

Ashley Harrington
Policy and Program Assistant
aharrington@uscib.org

 

At UN STI Forum, USCIB and IOE Deliver Side-Event on Innovation Solutions in Africa 

Top left to right: Norine Kennedy (USCIB), Edward Obiko (Microsave), Megan O’Neill (Microsoft) Bottom left to right: Dr. Cosma Zavazava (ITU), Inhee Chung (Samsung), Jehiel Oliver (CEO, Hello Tractor)

On the occasion of the UN Science, Technology and Innovation in Africa Day, USCIB co-organized with the International Organization of Employers (IOE) an official virtual side event, Catalytic Private Sector Innovation Solutions in Africa. The side event focused on technology and innovation partnerships as catalysts to advance the sustainable and resilient graduation of Least Developed Countries (LDCs), most of which are located in Africa. The event preceded the eighth UN Science, Technology and Innovation Forum (STIF) in New York, a key meeting preparing for the UN SDG Summit in September. 

“Driving meaningful change in Africa will depend on sustained engagement by local business communities working with global business partners across all sectors,” said USCIB Senior Vice President for Policy and Global Strategy Norine Kennedy. “This catalytic dynamic is key to deploying the science-based solutions that underpin SDGs and Our Common Agenda (OCA) implementation.” 

The event focused on ensuring that business is part of the conversation relating to the science-policy interface, to listen, to learn and engage with stakeholders towards collective bottom-up actions that are needed for the implementation and integration of solutions that have real impact on the ground. 

Dr. Cosmas Zavazava, director of the Telecommunication Development Bureau at the International Telecommunications Union (ITU), gave keynote remarks. Zavazava called for a new era of partnerships. ITU is partnering with businesses on the ground in Africa and globally through programs such as the Innovation and Entrepreneurship Alliance for Digital Development, Partner2Connect Digital Coalition, and Giga Global—a joint global initiative by ITU and UNICEF that aims to connect every school to the Internet and every young person to information, opportunity and choice.  

“Public private partnerships are essential to drive digital innovation, build human capacity and deliver much-needed infrastructure to connect the unconnected,” said Zavazava.  

Participants also heard from a panel of experts, which included Shea Gopaul, IOE special representative to the UN, Hasna Barkat Daoud (Employers Federation of Djibouti), Megan O’Neill from USCIB member Microsoft, Jehiel Oliver, CEO at Hello Tractor, Edward Obiko (Microsave) and Inhee Chung (Samsung).  

Over 40 participants tuned into the meeting from across the globe, ranging from countries such as Belgium, Djibouti, Egypt, Ghana, India, Kenya, Nigeria, South Korea, Turkey and the United States.  

At STI Forum, Ratzan Presents USCIB Foundation Initiatives That Help Advance SDGs

Dr. Scott Ratzan

During the eighth annual UN Multi-Stakeholder Forum on Science, Technology and Innovation for the SDGs (STI Forum), held in New York May 3-4, The USCIB Foundation’s Dr. Scott Ratzan made remarks as a lead discussant to support evidence-based policy to solving interconnected and complex challenges society is facing. Ratzan joined other panelists from civil society to speak during the Opening Session of the Forum, “Strengthening Trust in Science and Technology.”

Ratzan’s remarks raised the importance and relevance of several projects led by The USCIB Foundation and its partners around the globe. These initiatives include Business Partners for Sustainable Development (BPSD), Business Partners to CONVINCE (BP2C), the Business Partner Roundtable series and a global BP2C-related campaign, There’s More To Be Done.

BP2C was launched in 2020 at the UN High Level Political Forum (HLPF) during the height of the pandemic. The goal of the initiative is to engage the private sector and motivate employers to build confidence, vaccine literacy and support the benefit of COVID vaccines.

“Today, we work in partnership along with academics, NGOs and other stakeholders to advance vaccine literacy and to address challenges with misinformation and to cover general vaccines for employers of all sizes,” said Ratzan. “Along with the collaboration of USCIB’s global network—the International Organization of Employers (IOE), the International Chamber of Commerce (ICC) and Business at OECD, as well as USCIB member, the Society for Human Resource Management (SHRM), the There’s More To Be Done campaign includes advancement of vaccine literacy and uptake and other key areas for employers to integrate in their workplace strategies.

There’s More To Be Done includes Learning Modules and resources promoting the important role of vaccine literacy and other key issues for trustworthy communication and effective COVID recovery.

“We intend to evolve this campaign to advance health and well-being on the planet,” added Ratzan. “At this historical time rebounding from the first pandemic in a century, we need to build support for science, technology and innovation with trustworthy local and global partners. We welcome the opportunity to engage at all levels from global, national, regional to local – to advance the global goals.”

Ratzan also noted that the next Business Partner Roundtable will address infrastructure (SDG 9) and will be held in partnership with the Wilson Center in Washington DC. In the latter part of 2023, there will be a Roundtable on climate change and food security.

“We intend on sharing ideas with the broad UN community and stakeholders throughout the globe as we embrace SDG 17 partnerships for the Goals,” said Ratzan. “All of these multisector activities work to support the mission of the STI Forum.”

The session was moderated by Quarraisha Abdool Karim who is the co-chair of the UN Secretary General’s ten-member group supporting the Technology Facilitation Mechanism.

The theme for this year’s Forum was “Science, technology and innovation for accelerating the recovery from the coronavirus disease (COVID-19) and the full implementation of the 2030 Agenda for Sustainable Development at all levels.”

To view the full Session, please click here.

USCIB Files Submission With FTC on Non-Compete Clauses in Employment Contracts

USCIB filed a submission with the Federal Trade Commission (FTC) April 19, opposing its proposed rule to ban employers from utilizing non-compete clauses in employment contracts, a practice that violates Section 5 of the Federal Trade Commission Act, according to the FTC.

USCIB’s submission argues not only that the FTC lacks rule-making authority to even issue the proposal, but the proposed rule makes improper assumptions regarding the applicability of state law versus a federal blanket ban and that trade secrets safeguards serve as a substitute for non-competes. The proposed rule would ban non-competes for high income workers or workers with access to confidential information, which is a an essential tool for companies to protect intellectual property, trade secrets and other confidential information. The submission makes the strong case that non-competes should continue to be allowed on a case dependent basis.

“USCIB challenges the lack of evidence and methodologies used to support the FTC’s proposed rulemaking on non-competes clauses and is alarmed about the deleterious impacts a blanket ban would have on U.S. industries,” said USCIB Vice President for International Investment and Trade Policy Alice Slayton Clark. “Not only does it break with longstanding legal precedent such as the consumer welfare standard and fact-specific inquiry, but it will irreparably harm U.S. companies that rely on non-competes to safeguard intellectual property rights and trade secrets.”

The FTC has received over 15,000 comments on its proposal, showing the broad impact it would have on companies and workers.  To read the full submission, click here.

USCIB Discusses OECD Country Program for Ukraine Reconstruction and Redevelopment

Left to right: Rick Johnston, Alice Slayton Clark, Bill Tompson, Will Davis

USCIB Trade and Investment Committee Chair and Chair of BIAC Rick Johnston (Citi) and USCIB Vice President for International Investment and Trade Policy Alice Slayton Clark met last week with Bill Tompson, head of the OECD Eurasia Division and Will Davis, head of the OECD Washington Center, to discuss the OECD Country Program for Ukraine to help with reconstruction and redevelopment.

Following the OECD Council’s recognition of Ukraine as a prospective member, OECD is working in close consultation with the government of Ukraine on a four-year Country Program that will enable Ukraine to access OECD expertise and build capacity to respond to domestic policy priorities while also supporting recovery and reconstruction efforts. Financing of the Country Program, estimated to be 16 million EUR over four years, will be secured through grants from OECD members and donors. The Multi-Agency Donor Co-ordination Platform for Ukraine is co-chaired by the United States, the EU, and Ukraine and will help with coordinating fundraising efforts.

“The OECD Country Program will offer Ukraine important information at a time when it seeks to reform its economy and governance structures to attract and sustain the critical international trade and investment needed to recover and prosper after the war, said Clark. “The Program will provide Ukraine with critical knowledge about international best practices, increased participation in selected OECD bodies, tailor-made reviews and peer learning from an enhanced network of international experts and peers, and importantly, stronger links with the OECD community.”

The Country Program for Ukraine will be reviewed and transmitted to OECD Council at the next OECD Ministerial Council (MCM) meeting that will take place June 7-8.

Country Programs provide a structured and strategic form of engagement and cooperation with selected partner countries that, while not formally linked to the OECD accession process, have proven a willingness and ability to meet OECD standards and practices. They are a recently established OECD global relations tool.

UNCITRAL Reaches Agreements on Code of Conduct for Arbitrators

The United Nations Commission on International Trade Law’s (UNCITRAL) Working Group III (WG III) reached agreement on a code of conduct for arbitrators during meetings at the United Nations headquarters in New York late last month. While the code of conduct imposes some limits on roles arbitrators can take in investment disputes proceedings, USCIB successfully advocated for narrower restrictions.

WG III was set up by the United Nations in 2017 to identify concerns and explore reforms relating to the operation of the Investor-State Dispute Settlement (ISDS) system. According to USCIB Vice President for International Investment and Trade Policy Alice Slayton Clark, this is the first time that agreement has been reached on text in over five years of WG III deliberations.

The agreement imposes temporary bans under certain scenarios on so-called “double hatting,” where an arbitrator can also serve as counsel in ISDS cases. Arbitrators would be subject to “cooling-off periods,” which vary from one to three years, depending on whether the two cases involve same measures, same or related parties, or same provisions in the same treaty. Delegates agreed to longer cooling-off periods for same measures and related parties, but shorter periods for same treaty, an important “win” for investors since it is not uncommon for multiple cases to arise under the same treaty and, in those cases, investors want to have maximum options in terms of their choice of arbitrator and counsel.

“USCIB has participated in WGIII discussions as a non-governmental organization since the start, advocating for balanced reforms that improve ISDS for both states and investors,” said Clark. USCIB member Lauren Mandell of WilmerHale has worked diligently with USCIB staff to promote member interests at UNCITRAL throughout this process.

In addition to the code of conduct for arbitrators, WG III also agreed on ethics rules for judges sitting on a permanent multilateral investment court, a structure that does not exist and that USCIB does not support. Because there is no agreement that there will even be a multilateral court, the final code has numerous caveats, with the European Union, the lead proponent of the court, acknowledging that the code may need to change based on the actual design of the court.

Lastly, WG III agreed to a set of technical provisions to encourage, rather than require, parties to mediate disputes as an “offramp” before parties turn to ISDS. Mediation may not be appropriate in a given dispute and could waste time and money when the other side is not seriously interested in the process.

The UNCITRAL Commission will finalize and endorse the three documents at its annual meeting in July.

USCIB Advocates for Implementable, Workable OECD Guidelines for Multinational Enterprises

During the meeting of the OECD Responsible Business Conduct (RBC) Working Party in Paris last week, USCIB’s Corporate Responsibility and Labor Affairs team – Director Ewa Staworzynska and Policy Manager Jose Arroyo – attended the sessions as part of Business at OECD (BIAC) delegation for the ongoing update of the OECD Guidelines for Multinational Enterprises (Guidelines).

The Guidelines are a set of recommendations from governments to businesses for ensuring responsible business conduct.

According to Arroyo, the BIAC delegation conveyed to OECD governments relevant points to make sure the Guidelines are implementable and workable for business while maintaining a high bar for responsible business conduct.

“USCIB and BIAC were able to get support in the room from several governments as we continue to address key issues that remain to be resolved,” said Arroyo.

“A common line of reasoning is that the Guidelines are voluntary and, therefore, can go well beyond what is asked of business in legislation. However, we insisted that if the Guidelines are increasingly referenced in new law bills, and should these bills pass, there may be substantial practical challenges for business.”

USCIB and BIAC advocated for new language that clarify the intent of the Guidelines, meaning they are not designed to be applied in hard law. Ultimately, governments will have the last word on the issue, according to Arroyo. Other challenges discussed were the downstream due diligence approach and substantial changes in the Environment Chapter.

USCIB, as the U.S. affiliate to BIAC, has been the only U.S. business association on the ground for all the OECD RBC Working Party meetings.

“We are in the home stretch of the update, and we thank all USCIB members who provided their expertise, inputs, questions and concerns to secure a workable, implementable document,” said Arroyo.

The Guidelines are expected to be approved by the OECD in June and USCIB will continue to advocate for the business community for a workable outcome while promoting the highest standards of responsible business conduct.

Rick Minor Announces Appointment of ‘USCIB Big Four International Tax Policy Board’ 

Rick Minor, USCIB’s VP and International Tax Counsel, is pleased to announce the creation and appointment of the USCIB Big Four International Tax Policy Board. The four original board members include Barbara Angus (EY), Pat Brown (PwC), Danielle Rolfes (KPMG) and Bob Stack (Deloitte).   

“These four Board members all belong to a very small and distinguished group of tax practitioners who have served at the highest policy levels in private practice and public service,” said Minor. “The Board is expected to enhance the value of the tax committee structure and to complement the ten-member Tax Leadership Team in insuring USCIB remains on the cutting edge of international tax policy advocacy and programming.”

The Board will meet regularly with Minor and the Chair of the USCIB Tax Committee, John Stowell, head of global tax and international financial reporting at The Walt Disney Company, and quarterly with the USCIB Tax Leadership Team.   

Here are the abbreviated bios of the original Board Members: 

Barbara Angus, Principal and Global Tax Policy Leader, Ernst & Young LLP 

Barbara M. Angus is a Principal with Ernst & Young LLP and is EY’s Global Tax Policy Leader.  In addition to her 25 years of private-sector experience in international tax matters, she also has had tax policy roles on Capitol Hill and at the U.S. Treasury Department, including most recently serving as Chief Tax Counsel for the House of Representatives Committee on Ways and Means during the development and enactment of the 2017 tax reform legislation. Angus received the Pillar of Excellence Award from the Tax Council Policy Institute in 2022 and the Distinguished Service Award from the Tax Foundation in 2018. She is a graduate of Dartmouth College, Harvard Law School and the University of Chicago Graduate School of Business. 

Pat Brown, Washington National Tax Services Co-Leader, PwC U.S. 

At PwC, Brown advises clients on all aspects of international and domestic tax policy. Prior to joining PwC, Brown was vice president and counsel, tax for GE Power and GE Renewables and a GE corporate officer. Brown joined GE in 2002 from the U.S. Treasury Department, where he served as attorney advisor and associate international tax counsel from 1998-2002. During his time at Treasury, Brown focused primarily on international tax analysis, negotiation of tax treaties, and representing the U.S. government at meetings of the OECD on various tax issues. Prior to joining the Treasury Department, Brown was an associate at Sullivan & Cromwell in New York. Brown received a BS in Mechanical Engineering, with highest distinction, from the University of Virginia in 1991 and a JD from Georgetown University, magna cum laude, in 1995. 

Danielle Rolfes, Co-Leader, Washington National Tax – International Tax, KPMG LLP 

Rolfes co-leads the international tax group within KPMG’s Washington National Tax office. She joined KPMG in 2017, following her tenure as the international tax counsel at the U.S. Department of the Treasury.  Rolfes advises clients on issues related to international tax policy, tax treaties, the character and source of income, subpart F, foreign tax credits, and the regimes for Global Intangible Low-Taxed Income, the Foreign-Derived Intangible Income and the Base Erosion Anti-Abuse Tax. Rolfes is a frequent speaker and writer on a variety of international tax topics. In addition to numerous articles, she is the author of An Analysis of FIN 48 – Accounting for Uncertain Income Tax Positions (Matthew Bender, 3d ed. 2009). 

Bob Stack, Managing Director, Deloitte Tax LLP 

Stack joined Deloitte Tax from the U.S. Department of the Treasury, where he was the deputy assistant secretary for international tax affairs in the Office of Tax Policy in the Obama administration. At Treasury, he worked directly with the assistant secretary of tax policy and the international tax counsel in developing and implementing all aspects of U.S. international tax policy, including treaties, regulations and legislative proposals and served as the U.S. representative at the OECD during this time on the BEPS projects.  Stack earned his Bachelor of Arts in English education from State University of New York at Albany and his Master of Arts in French language and literature from New York University. He went on to obtain his Master of Science in foreign service from Georgetown University and a Juris Doctor from Georgetown University Law Center, where he was editor-in-chief of the Georgetown Law Journal. 

USCIB Contributes to OECD Meetings on Countering Illicit Trade in E-Commerce

USCIB Senior Director for Customs and Trade Facilitation Megan Giblin was in Paris earlier this month attending the second workshop of the OECD Task Force on Countering Illicit Trade E-Commerce Expert Group and the 11th Plenary of the OECD Task Force on Countering Illicit Trade (TF-CIT). Giblin attended these meetings as part of a Business at OECD (BIAC) private sector delegation, which also included experts affiliated with or participants from many USCIB member companies including, among others, Abbott, Amazon, BAT, eBay, HanesBrands, Lego, PMI and Walmart.

According to Giblin, a previous meeting of this expert group, held in December 2022, saw agreement that there was scope to develop future government and industry guidelines to curb illicit trade in counterfeits abusing e-commerce platforms. This second E-Commerce Experts Groupworkshop followed-up on that agreement whereby experts, including members of the private sector, provided their views on the proposed draft guideline text. The next meeting of the OECD E-Commerce Experts Group will be held in Sofia, Bulgaria, followed by a meeting to be held in Washington, DC, later this year.

The E-Commerce Experts Working Group was followed by the OECD TF-CIT plenary meeting, where the Business at OECD (BIAC) delegation was led by Executive Director Hanni Rosenbaum, the BIAC Anti Illicit Trade Committee (AITEG), Chair, David M. Luna, and.  Policy Manager Jacobo Ramos Folch. This TFCIT meeting spanned 2-days and covered many critical topics, including: a look back at the Task Force over the past 10 years; Free Trade Zone Certification Scheme Roll-Out; and the above-mentioned E-Commerce project.

During the Task Force meeting, Luna, a former U.S. diplomat, highlighted the importance of strong public-private partnerships and emphasized the commitment of the business community to work with the OECD to counter the harms caused by illicit goods that have severe negative effects on global prosperity, trade, economic recovery, supply chains and public health and safety. 

“BIAC has worked in partnership with the OECD to advance important work in this area, including on illicit trade in the context of free trade zones, electronic commerce and high-risk sectors,” said Giblin.

In her closing remarks, Ms. Hanni Rosenbaum emphasized the importance of active public-private partnerships and BIAC’s continued commitment to support this important OECD policy work programme, especially as it transitions to the Trade Committee.