USCIB SDG Series: Countdown to the High-Level Political Forum

This year’s United Nations High-Level Political Forum on sustainable development will be held from July 10-17 under the auspices of the Economic and Social Council. The theme for the forum will be “Eradicating poverty and promoting prosperity in a changing world” focusing on the following Sustainable Development Goals (SDGs):

  • Goal 1.End poverty in all its forms everywhere
  • Goal 2.End hunger, achieve food security and improved nutrition and promote sustainable agriculture
  • Goal 3.Ensure healthy lives and promote well-being for all at all ages
  • Goal 5.Achieve gender equality and empower all women and girls
  • Goal 9.Build resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation
  • Goal 14.Conserve and sustainably use the oceans, seas and marine resources for sustainable development

USCIB is deeply engaged in all aspects of the 2030 Development Agenda, advocating for good governance and the rule of law, economic growth, investment in infrastructure, enabling environments to foster innovation, strong public-private partnerships and above all, an open channel for business input into policy negotiations and implementation.

USCIB believes that good governance and rule of law, infrastructure, enabling environments and private-public partnerships are the building blocks of success in achieving prosperity and eradicating poverty. While much work remains, USCIB members are already doing their part to ensure the realization of these goals. Each week, we will feature one of these goals in this publication. Additionally, we refer you to USCIB’s “Business for 2030” website which showcases the private sector’s contributions to the SDG’s. Stay tuned!

Giblin Speaks on American Bar Association Panel on Customs

USCIB’s Director for Customs and Trade Facilitation Megan M. Giblin spoke at the spring meeting of the American Bar Association Section of International Law event last Friday, April 28. The event featured more than 60 panels highlighting different aspects of the theme of the conference – “New Leaders, New Laws: 2017 and Beyond.” Giblin spoke on a panel titled “U.S. Measures to Combat Human Trafficking; Responses in the Corporate World,” along with Alice Kipel of U.S. Customs and Border Protection (CBP), Ken Kennedy of U.S. Immigration and Customs Enforcement and Eric Gottwald of the International Human Rights Forum.  The panel was tied to the topic of forced labor and the provisions of the Trade Facilitation and Trade Enforcement Act (TFTFA) of 2016, which repealed the “consumptive demand” clause in 19 U.S.C. §1307.  The focus was on what happens at the ICE and CBP levels on the issue of forced labor, the work industry is carrying out as members are getting caught up in the import prohibition tied to the issuance of Withhold Release Orders (WROs) by the CBP Commissioner, as well as the matter of submissions made by, for example, Civil Society Organizations seeking action under 19 U.S.C. §1307.

Since 15 days after the passage of TFTEA, CBP has not been enforcing the “consumptive demand clause” there have been a series of WROs issued by the CBP Commissioner. All WROs now relate to specific companies in China. The product scope is stevia and its derivatives, peeled garlic as well as a series of chemicals some that can be mined and later manufactured into viscose rayon, for example. No new WROs have been issued since late 2016.

CBP is focused on stopping a specific shipment at time of import, ICE is focused on criminal actions tied to forced labor. What is clear is that the discretions are not the same.

As communicated by then CBP Commissioner Kerlikowski in Congressional testimony in September 2016, we know that there have been shipments stopped by CBP at time of import, which have resulted in either U.S. importers having to re-export the shipments and/or the importers having to provide significant amounts of information to CBP to prove that the specific shipment is clear and free from forced labor. Further, we understand that not only have some shipments been released by CBP for re-export, some shipments have been released for entry into the commerce of the U.S.

The main issue from the customs side is that once a WRO is issued and a there is a submission that links a specific importer, to a specific shipment, to a specific entity listed in a WRO, then U.S. import shipments can and are being detained at the customs border. The shipments are stopped under suspicion that the goods may have had forced labor in their supply chain. “From an industry perspective, there is concern over a shipment being held, transparency over why a shipment has been stopped, timeliness of communications with the importer, brand impact because of a a shipment being detained, not to mention that if information is shared about an importer who’s shipment is stopped there is not always clear communication to parties once an importer has proved  its supply chain is clean and the shipment has been released into the commerce of the U.S.,” said Giblin during her panel. “The regulations are from the 1960’s. Today’s supply chains, global value chains are extremely complex and lots of information must be provided to prove they have a clear supply chain.”

USCIB in the News: Business and the UN Climate Process

USCIB Vice President Norine Kennedy and CEO Peter Robinson at COP21 in 2015.

The Financial Times has published a letter to the editor from USCIB Vice President Norine Kennedy on the role of business in the UN climate change talks — please see below. The op-ed is also available on the FT’s website.

Publication of this letter comes as UN members gather in Bonn, Germany for talks leading up to this December’s COP23 summit. A few governments and interest groups have called for new rules aimed at restricting the private sector’s participation in the UN climate process. Kennedy’s letter forcefully rebuts these efforts.


Financial Times

May 4, 2017

Letter

Business takes its climate responsibilities seriously

From Norine Kennedy, New York, NY, US

Sir, Regarding “Developing nations seek to reveal business influence on climate talks” (May 1): the UN is at its best when it opens its doors to all relevant stakeholders. Potential conflicts of interest pertain to all organisations, not just business associations. Business representatives are obliged to abide by all UN rules as a condition of their attendance at UN meetings.

We take this responsibility seriously. Just two years ago, my organisation joined others from around the world in celebrating the Paris Climate Agreement. The political will needed to reach consensus in Paris was spurred in part by support from business. Now, disappointingly, some wish to disinvite the private sector.

Since it is business that will deliver the lion’s share of the investment and innovation needed to confront the climate challenge — a fact recognised in the Paris Agreement — shouldn’t the conversation include business representatives? How else can governments and other stakeholders develop effective policy frameworks to unlock potentially game-changing solutions?

Norine Kennedy
Vice President, Energy and Environment,
United States Council for International Business,
New York, NY, US

USCIB Op-Ed: Time for Some ‘Tough Love’ at the UN

U.S. Ambassador to the UN Nikki Haley (credit: U.S. Mission to the UN)

The Hill has published an op-ed by USCIB President and CEO Peter Robinson on UN reform — see below. The op-ed is also available on The Hill’s website.

This op-ed follows on a letter to the New York Times on the same topic last month, as well as an op-ed on UN funding in January. It further advances USCIB’s position that the UN must work more effectively with the private sector and other stakeholders to advance shared goals.

 

The Hill

May 1, 2017

Opinion

Ambassador Haley needs to dole out some ‘tough love’ to United Nations

By Peter Robinson, opinion contributor

Critics of the United Nations are gaining ground in Washington. Proposals to defund and disengage from the U.N. have been put forward on Capitol Hill and by the Trump administration in its proposed budget.

As a longtime observer of, and participant in the U.N. representing the American business community, I’d like to offer some unsolicited advice to Ambassador Nikki R. Haley, the U.S. representative to the U.N., on how we could work to improve the global body.

The U.N. deserves a lot of the criticism being leveled at it. Many observers, myself included, acknowledge that parts of the U.N. system often suffer from poor management, an inability to efficiently set and meet priorities and the tendency to take an unbalanced view toward certain stakeholders.

This is evident in the organization’s attitude toward the private sector. There have indeed been positive experiences, such as in the U.N. 2030 Development Agenda, where the U.N. is reaching out to the private sector to meet commonly agreed goals of poverty reduction, environmental protection and better governance.

But too often, in many parts of the U.N. system, the business community is still regarded with suspicion, and its motives are called into question or criticized as a conflict of interest. With criticism of the U.N. on the rise, now is the time for the United States to push for effective reform. Here are four areas where the U.S. could exercise some “tough love” in the United Nations.

First, insist on good management. Financial resources are scarce, and we need to know that our taxpayer dollars are being used wisely. New U.N. Secretary General Antonio Guterres has pledged to make the organization leaner and more effective.

Work with him to increase the ability of the U.N. Office of Internal Oversight Services to act as a truly independent “inspector general” throughout the U.N. system, with direct reporting back to U.N. governing bodies authorized to take specific action on recommendations.

Second, demand more transparency and accountability. The U.N. has taken steps to open its doors to non-governmental entities, but much more needs to be done, particularly from the standpoint of the business community. Too often, the U.N. sets global norms and standards with little or no input from outside stakeholders, including the private sector.

This is unfortunate, especially given the extent to which business is looked to for funding, innovation and implementation in such areas as climate change, improved nutrition and better health care. In addition, some U.N. agencies, such as the World Health Organization, actively blacklist business organizations from even observing their activities. This damages the U.N.’s credibility and effectiveness.

Third, ensure the U.N. avoids redundancy and mission creep. While the U.N. plays a central role in global governance, it cannot and should not do everything or have the final say. United Nations negotiators are sometimes too eager to take up issues already being addressed elsewhere, like in global taxation, data and privacy issues, or intellectual property rights.

This not only wastes government time and money, it creates uncertainty and confusion for companies and everyone else. The U.S. should guide the U.N. and its specialized agencies to focus their resources on areas where they can add the most value and where they have a clear mandate.

One way to do this would be to develop stricter guidelines for voluntary contributions from member states, which are usually funds over and above assessed contributions for pet projects that often deviate from an agency’s mission.

Fourth, and perhaps most important, encourage the U.N. to partner with the private sector. Governments can’t do everything. The World Bank estimates that effectively tackling global problems of poverty, health, job creation and energy access will require trillions of dollars over the next 15 years, with much of that coming from the private sector in the form of project finance and foreign investment.

But this won’t happen if business views are sidelined or ignored. The U.S. should spur the U.N. to step up its partnerships with companies in such areas as innovation, infrastructure and investment.

Ambassador Haley should focus especially on U.N. agencies and bodies that have kept the business community in the dark or at arm’s length. Organizations such as the WHO and U.N. Human Rights Commission have drifted away from their core agendas and have enacted counterproductive restrictions on business — a key community which is keen to bring resources, expertise and implementation to advance their respective missions.

We should insist on inclusive and transparent governance in the U.N., with an open door for responsible actors from civil society, including the private sector.

The United Nations has made important progress, and it must continue to seek out new opportunities for collaboration that can improve lives and increase prosperity in the United States and around the world.  But none of this can happen if the United States is not at the table. The U.N. was in large part an American creation. It’s going to be up to us to try to fix it.

Peter M. Robinson is president and CEO of the United States Council for International Business.

 

B20 Summit Attendees Reaffirm Commitment to Open Trade

B20 Chair Jürgen Heraeus hands over the B20 Policy Recommendations to German Chancellor Merkel at the B20 Summit in Berlin

The two-day B20 Summit took place on May 2-3 in Berlin, Germany with the theme “Resilience, Responsibility, Responsiveness – Towards a Future-oriented, Sustainable World Economy.” Approximately 700 representatives from the B20 met for the final summit of the German B20 Presidency. USCIB’s President and CEO Peter M. Robinson was among them in his capacity as Co-Chair of the B20 Employment and Education Taskforce.

Among the many meetings that took place during the summit was an International Chamber of Commerce (ICC) G20 CEO Advisory Group that was facilitated by ICC Germany.  The meeting was chaired by ICC Secretary General John Danilovich.  ICC First Vice-Chairman John Denton also participated in the meeting, which brought together Group members at both Deputy and CEO levels, together with representatives from ICC Argentina, ICC Germany, ICC United Kingdom, and USCIB’s Robinson.

The meeting of the ICC Group was able to benefit from the participation of B20 Germany Sherpa Stormy-Annika Mildner. Mildner provided a detailed briefing of latest B20 activities and lessons learned thanking ICC for its sustained and substantive participation in the B20 task forces and working groups, and said that the summary of B20 recommendations would be presented to Chancellor Angela Merkel and sent to B20 members.  She explained the G20/B20 “compact with Africa” initiative – a partnership between the B20/G20 and 5 African countries (the Ivory Coast, Morocco, Rwanda, Senegal and Tunisia) to improve sustainable private sector development in African countries.

ICC Argentina Chairman Victor Dosoretz gave an update on preparations for the G20/B20 under Argentine presidency in 2018.  He explained that the six main business associations in Argentina – which were all part of ICC Argentina – would work together in an organizing committee for the B20.  Union Industrial Argentina Vice President Daniel Funes de Rioja, outgoing chairman of the International Organization of Employers, had been appointed as B20 Chairman by the Argentine government.  The B20 sherpa had not yet been selected.

The B20 Summit officially got underway with remarks by B20 Chairman Jurgen Heraeus who emphasized that the B20 managed to craft consensual positions on all major issues.  The B20 was united in its belief that trade increases prosperity worldwide, that protectionist policies are misguided and that policies are needed to help people who felt left behind by trade and technological change.

The B20 Task Force on Employment and Education, which is co-chaired by Robinson and which makes recommendations to the G20, promotes open, dynamic and inclusive labor markets, harnessing the potential of technological change through better education and training, and creating a global level playing field and promotion of fair competition for globally operating companies. The task force’s leaders recognize the need to address unemployment, raise labor force participation, improve education and work-force qualification and create framework conditions for quality jobs to ensure sustainable economic and financial development.

“With a high level of unemployment globally, employment and education have become core topics of the G20 and the B20,” said Robinson. “To address employment and training gaps, we [the B20 Employment and Education Taskforce] released a series of recommendations on investing in skills development, implementing commitments such as the ILO G20 training strategy and using technology as a complementary tool to improve access and adaption.” The B20 Taskforce on Employment and Education policy paper can be viewed here.

The G20 Summit will take place from July 7-8 in Hamburg, Germany.

OECD Organizes Industry Meeting Ahead of June Ministerial

Ahead of June’s OECD Ministerial, Denmark, which holds the OECD presidency this year, organized a joint Business at OECD (BIAC) and the Trade Union Advisory Committee to the OECD (TUAC) consultation in Copenhagen with OECD member governments. USCIB’s President and CEO Peter Robinson gave remarks at the consultation on the importance of improving openness and competitiveness of economies as well as helping more people and companies of all sizes to participate.

“We are living through a period of rapidly changing technologies and economic policies, especially regarding cross-border trade and investment,” said Robinson. “Economic nationalism and isolationist sentiment are posing challenges to the OECD’s fundamental orientation of greater openness and cooperation. The economic context should focus minds – without a comprehensive competitiveness agenda for OECD countries, there will be less wealth creation and less room to increase living standards.”

Robinson recommended a regular publication of the Better Business Index to help governments understand and improve the key drivers of private sector growth. “We think this is vital so as not to lose sight of – or take for granted – the role of the private sector in creating wealth,” he said. Robinson emphasized the importance of developing a new OECD Strategy for SMEs and sensible policies to ensure sustainable growth of the digital economy.

The OECD meetings took place on the eve of the B20 Summit in Berlin.

USCIB’s Mulligan Weighs in on Asia Trade in Wharton Journal

As the Trump administration moves to shift the focus of U.S. trade policy away from larger multilateral pacts and toward bilateral deals, USCIB Senior Vice President for Policy and Government Affairs Rob Mulligan was cited in a Wharton School of the University of Pennsylvania online business journal Knowledge@Wharton in an article titled “Bilateral or Multilateral: Which Trade Partnerships Work Best?

Mulligan was quoted emphasizing the importance of the Asia-Pacific region for USCIB’s membership, saying, “Our hope is that [the U.S.] will pursue some other approach that will continue to open those markets and ensure that U.S. companies are able to compete and have access in those markets. The multilateral approach, we generally felt, had advantages [in] that you could get many countries at one time… [A] lot of U.S. businesses benefit from the global rules-based trade system.”

The full article can be accessed here.

USCIB Urges Trump Administration to Remain Engaged in UN Climate Talks

With senior advisors in the Trump administration set to meet tomorrow to discuss U.S. engagement in the UN and other international climate change discussions, USCIB has urged the administration to keep the U.S. seat at the table.

Earlier this month, in a letter to the White House, USCIB President and CEO Peter M. Robinson wrote: “In spite of challenges and shortcomings in the UN climate policy arena, USCIB reaffirms its support for the United States to continue as a Party to the UN Framework Convention on Climate Change (UNFCCC) and the Paris Agreement.”

However, USCIB’s letter, which was sent April 17 to National Economic Council Director Gary Cohn, explicitly recommended that the U.S. place a number of conditions on continued engagement, including reassessing existing U.S. emissions reduction and related commitments under the Paris Climate Agreement in the context of broader consultation with the private sector.

The letter further recommended that the U.S. insist on greater access and transparency in the UN climate negotiation process for U.S. economic stakeholders, call on the UN to discourage unilateral trade measures related to climate, and work through the UN and other international forums to foster speedier development and deployment of environmentally sound technologies.

“Addressing climate change and its impacts will require a long-term international cooperative approach with due attention to national circumstances and priorities to assure ongoing economic development,” Robinson wrote. “USCIB members are convinced that U.S. engagement and leadership are required to champion economically sound approaches to energy and climate change risks that advance U.S. economic prosperity and create new job and market opportunities for U.S. businesses at home and abroad.”

USCIB Convenes Multistakeholder Roundtable on Business and Infrastructure for SDGs

L-R: USCIB Vice President, Strategic International Engagement, Energy and Environment Norine Kennedy, USCIB President and CEO Peter Robinson, and Ambassador Lisa Kubiske from the U.S. State Department

As the UN gears up for its annual high-level political forum (HLPF) to review progress on the sustainable development goals (SDGs) in July, the international community is turning its attention to SDG 9—building resilient infrastructure, promoting inclusive and sustainable industrialization and fostering innovation. The extensive role of infrastructure in achieving all 17 SDGs prompted USCIB to organize a ‘Business for SDGs’ roundtable on Infrastructure last Friday, April 21, hosted by Covington LLP in Washington DC.

Norine Kennedy, USCIB’s vice president for strategic international engagement, energy and environment and the lead for USCIB’s work on the sustainable development goals opened the meeting and served as the event’s master of ceremonies.  “USCIB’s SDG Working Group realized that no SDG can be delivered without the right ‘hard’ and ‘soft’ infrastructure, such as education, financial inclusion, food systems and healthcare, in place. The pipeline for bankable projects for both has to accelerate to broadly deploy and leverage business resources and know,” said Kennedy.

The event, held on the margins of the UN Financing for Development Infrastructure Forum, drew participants from government and business, including USCIB member companies AT&T, Bechtel, Citi, KPMG, MasterCard, and Monsanto as well as the UN Department of Economic and Social Affairs, NGO groups such as the Global Infrastructure Basel Foundation, and U.S. government representatives, notably Ambassador Lisa Kubiske from the U.S. Department of State who gave closing remarks.

The roundtable discussed obstacles to and best practices in public private partnerships for infrastructure projects, challenges in removing barriers or dealing with corruption, and the importance of scaling U.S. business investment, and the role of business in developing and utilizing SDG-relevant metrics. “There’s a huge financing gap, especially in terms of development and sustainable infrastructure projects around the world,” said Kubiske before citing U.S. government resources and initiatives that to de-risk and support U.S. companies competing for infrastructure projects, such as Power Africa.

“Investment in infrastructure is key to achieving a successful implementation of the SDGs,” emphasized Peter M. Robinson, USCIB’s CEO and president in discussing key takeaways from the roundtable. “We must actively search for ways to discourage governments from crowding out private investment; the implementation imperative requires scaling up business involvement and commercial opportunities. A first priority is to knock down obstacles to infrastructure investment, which can take the form of formal barriers to foreign investment in specific sectors or burdensome regulation affecting both foreign and domestic firms,” he said. Robinson’s remarks can be found here.

USCIB will host another roundtable on Innovation and SDGs in May in conjunction with the Financing for Development Forum.  Please see USCIB’s Businessfor2030 website for more information on the roundtable and other USCIB actions and engagement on the SDGs.

Upcoming ICC Young Arbitrators Events

The International Court of Arbitration of the International Chamber of Commerce is organizing two ICC Young Arbitrators Forum (YAF) events in New York and San Francisco. On May 1, ICC YAF is organizing an event on “Summary Adjudication in International Arbitration” in San Francisco which will feature a panel of young practitioners on the West Coast along with a presentation by the Counsel of the ICC’s North America case management team. You may register by contacting Melissa.bibbs@dlapiper.com.

The ICC YAF Global Conference will be held from June 9-10 in New York City at Columbia Law School with a welcome cocktail reception on June 8. The conference will feature keynote speeches, panel discussions, debates, and workshops on Third Party Funding and Damages, along with a special networking session called, “Friday Night Live”. This conference is aimed at young arbitration practitioners of approximately 40 years and under: counsel, arbitrators, corporate counsel or academics. This ICC YAF Global Conference is a unique opportunity for YAF members from all over the world to meet peers from all Chapters. Young practitioners from all continents will gather to exchange thoughts on international arbitration and share some fun together. For more information, please visit their website.

ICC YAF has also recently announced new regional representatives for its 2017-2019 mandate. Representing 40 countries and 53 cities, the elected representatives are tasked with promotion and development of the dynamic global network of young arbitration talent. USCIB would like to congratulate the following new representatives for the United States:

Andy Tuck, Alston & Bird, LLP, Atlanta

Seth Meyer, Kirkland & Ellis, LLP, Chicago

Silvia Marchili, King & Spalding, Houston

Marike Paulsson, University of Miami School of Law’s International Arbitration Institute, Miami

Floriane Lavaud, Debevoise & Plimpton, New York

Ignacio Zapiola, Cleary Gottlieb Steen & Hamilton, LLP, New York

Amy Endicott, Arnold Porter LLP, San Francisco

Chip Rosenberg, White & Case LLP, Washington DC