Policy Areas Archives

Donnelly Emphasizes Importance of US-China BIT

Published on April 5, 2017

Donnelly_CSISWith President Trump set to meet Chinese President Xi Jinping at the Mar-a-Lago estate in Florida, bilateral commercial relations are high on the agenda. Against this backdrop, Shaun Donnelly, USCIB’s vice president for investment and financial services, wrote a blog post “Don’t Give Up on a Gold Standard US-China BIT!” in Investment Policy Central. Donnelly argues that abandoning a decade-long effort to negotiate a Bilateral Investment Treaty (BIT) with China would be a “serious mistake” for U.S. interests. The agreement, if done right, would be a “win-win” for both countries, with the U.S. gaining plenty from a good, comprehensive and high-standard agreement.

“A strong BIT, is in America’s broad interest, good for American companies, workers, investors, states and communities and for American values. The U.S. wins when Chinese companies invest in the U.S., hire American workers, pay American taxes, and follow American standards and rules. And we also win when great American companies can invest successfully in China, pulling U.S. exports and brands, and business practices into fast-growing markets,” wrote Donnelly.

To achieve a comprehensive agreement, Donnelly argues that the Trump administration should consult key stakeholders in business, labor and civil society, as well as take the time to carefully assess best options and pros and cons.

Donnelly has over 30 years’ experience with the U.S. Department of State in a wide range of roles including: Principal Deputy Assistant Secretary for Economic and Business Affairs; U.S. Ambassador to Sri Lanka; Deputy Assistant Secretary for International Trade; Deputy Chief of Mission at the U.S. Embassy in Tunisia; and a detail as Assistant U.S. Trade Representative for Europe and the Middle East.

Paris Meetings Urge Global Level Playing Field for SOEs

Published on April 3, 2017

SOE_PARIS_meeting_croppedThe Organization for Economic Cooperation and Development (OECD) held a meeting in Paris on Corporate Governance on March 28, which featured a special roundtable on flexibility and proportionality of corporate governance. Business at OECD (BIAC) attended the meeting and expressed strong support for the effective implementation of the G20/OECD Corporate Governance Principles. USCIB member Dan Konigsburg, managing director, corporate governance and public policy, Deloitte Touche Tohmatsu attended these meetings.

BIAC also provided input to discussions on state-owned enterprises (SOEs) earlier this month, highlighting the need for transparency and a global level playing field, and calling for good practices for anti-corruption and integrity in SOEs. USCIB contributed comments to BIAC’s advocacy effort, reflecting priorities that transparency, including on the governance structure and the precise nature of the advantages SOEs enjoy, is a crucial first step for ensuring a level playing field.

“SOEs have become increasingly active in the global market place, with the highest percentage of the world’s largest first effectively under state control in decades. Transparency alone, however does not automatically level the playing field, and should merely be considered the minimum requirement for any good faith effort for SOEs to compete in the global market,” said Eva Hampl, USCIB’s director for investment, trade and financial services.

Giblin Represents Business at World Customs Organization Meetings in Brussels

Published on April 3, 2017

Brussels

USCIB’s expert on customs Megan Giblin joined CompTIA’s Ken Montgomery as an authorized delegate of the International Chamber of Commerce (ICC) to the World Customs Organization’s (WCO) 59th Harmonized System Committee (HSC) in Brussels, Belgium from March 15 to 24. Montgomery served as ICC head of delegation at this meeting.

Per the WCO, some key HSC deliverables included settling classification questions and disputes, revising Explanatory Notes and classification opinions, securing speedy and uniform implementation of classification decisions and drafting recommendations.

The Committee took up a number of topics including the implementation of the HS2017, re-examined the classification of several products, took global classification decisions on many other products and held preliminary discussions on yet others. Classification decisions taken at this meeting are subject to a two-month reservation period under which any administration can request that the decision essentially be placed on hold and re-examined at a future HSC session. Decisions where no reservations have been filed, become final at the conclusion of the stipulated timeframe.

A key topic of discussion for both governments and industry relates to the current version of the HS Nomenclature. The WCO owns the HS Nomenclature, the language of international trade. Today, nearly 210 countries, territories or customs unions use the HS as the basis of their domestic customs tariff.

“The HS is important. It is not only used for customs classification, but it is used as the basis of market access negotiations for free trade agreements, flagging other government agency requirements, and more. Companies of all sizes depend on timely completion of domestic processes and full implementation of the current version of the HS to ensure necessary predictability for their products,” said Giblin.

While the HS2017 entered force January 1, 2017, there are still several countries that have yet to complete domestic legislative approvals or processes necessary for implementation.

Giblin will serve as ICC head of delegation at the fall HSC meeting.

 

Mulligan Attends London ICC Meeting on Brexit, WTO

Published on April 3, 2017

London USCIB’s Senior Vice President for Policy and Government Affairs, Rob Mulligan, represented USCIB at International Chamber of Commerce (ICC) meetings with the World Trade Organization (WTO) and the British government on March 23 in London. The meeting was organized by ICC’s Trade and Investment Commission and focused on a wide range of global trade issues.  Ian Ascough, deputy director, multilateral trade, Department for International Trade, United Kingdom briefed ICC members on how the Brexit process will impact UK trade work.  He stressed their desire for a free trade agreement with the EU, no border in Ireland, and to be champions of free trade globally.  Ascough also noted that they will seek to secure a UK schedule in the WTO and build up their capability in the WTO. In discussing the implications of Brexit, Mulligan also raised business concerns related to trade, noting that “companies need sufficient transition times coming out of Brexit to address any changes related to customs, value chains, and regulatory requirements.”

Bernard Kuiten, head of external relations, WTO briefed the Commission on planning for the WTO Ministerial which will be held in Argentina this December.  Some areas that could be addressed in the Ministerial if member countries agree would include fisheries subsidies, e-commerce, services facilitation, agriculture, and investment.  The Commission also agreed to a suggestion by Mulligan to prepare a short paper on key ICC trade policy principles.

ILO Endorses Revised MNE Declaration

Published on March 27, 2017

United FlagsThe International Labor Organization (ILO) held the 329th Session of its Governing Body (GB) from March 9-23 in Geneva. The session’s landmark outcome was an endorsement of the revised Tripartite Declaration of Principles concerning Multinational Enterprises and Social Policy (MNE Declaration), which offers guidelines to multinational enterprises, governments, and employers’ and workers’ organizations in such areas as employment, training, conditions of work and life and industrial relations. This guidance is founded substantially on principles contained in international labor conventions and recommendations.

While the original MNE Declaration was adopted forty years ago, the revised version responds to new economic realities across international trade and supply chains, addressing decent work issues, forced labor and guidance on “due diligence” processes, which are consistent with the UN Guiding Principles on Business and Human Rights.

USCIB and its members Coca-Cola, Disney, IBM and Littler Mendelson, among others, worked closely with the International Organization of Employers (IOE) to provide comments to the Tripartite Working Group.

Ed Potter, USCIB international labor counsel and member of the GB, was nominated by USCIB to serve as the U.S. employer representative to the ILO and represent U.S. business in the Working Group. Potter noted, “This is the most extensive update of the MNE Declaration since it was first negotiated in 1977. It is a forward looking tripartite agreement that applies in all countries wherever large or small MNE’s operate or have business relationships.”

“We are grateful to Ed for his tireless work on behalf of business,” said USCIB’s President and CEO Peter Robinson. “Multiple employers expressed their appreciation to me for Ed’s continuous leadership on these issues during the GB last week.”

The revised MNE Declaration can be found here.

Business Finalizes Recommendations to G20 Sherpas

Published on March 22, 2017
USCIB President Peter Robinson and IOE President Daniel Funes de Rioja (2ns and 3rd from right, respectively) at the B20 session in Paris
USCIB President Peter Robinson and IOE President Daniel Funes (2nd and 3rd from right, respectively) at the B20 session in Paris

USCIB President and CEO Peter M. Robinson took part in today’s Special B20 Germany-OECD-BIAC meeting at the OECD in Paris, designed to provide coordinated private-sector input to the G20 leaders, in advance of a key G20 sherpas meeting this week in Germany. The main G20 leaders summit is scheduled for July 7-8 in Hamburg, Germany.

“Today’s meetings were important because we finalized key recommendations to the G20 sherpas on trade and investment policy, job-creation and the digitalization of the economy, among other topics,” said Robinson, who serves as co-chair of the B20 Employment and Education Task Force. “We hope the G20 governments will take these recommendations to heart.”

B20 President Jürgen Heraeus stated: “If we want to ensure future-oriented, sustainable economic growth, business has an important role to play. We are ready to do so. This cooperation offers the outstanding opportunity to shape global economic governance. Our global economy is changing rapidly. We are facing a multitude of risks: climate change, political conflicts, terrorism to name just a few. The G20 can serve as an agenda-setter.”

The B20 meeting was co-hosted by Business at OECD (BIAC), and OECD Secretary General Angel Gurria addressed the gathering. “Business at OECD provides continuity and expertise across G20 and B20 presidencies,” said Business at OECD Chairman Phil O’Reilly. “We support the OECD in its vital mission to improve domestic and global economic governance. At a time when trade and investment across borders are subject of much ill-informed debate, OECD evidence on the substantial benefits of open and competitive markets is more important than ever.”

Daniel Funes de Rioja, chairman of the International Organization of Employers, also took part in today’s meetings. Meanwhile, USCIB Senior Vice President Rob Mulligan participated in meetings in London around the conclusion of the G20 finance ministers meeting, which was notable in part for the ministers’ decision not to re-emphasize their shard commitment to resisting trade protectionism.

Following the conclusion finance ministers meeting, International Chamber of Commerce (ICC) Secretary General John Danilovich issued a statement calling on the G20 governments to commit to shared values of openness and cooperation.

“We continue to face the challenge of global growth being too low and benefiting too few,” said Danilovich. “This is the defining economic test of our times, and we urge all G20 economies to take concerted and urgent action to enable inclusive growth. A retreat into protectionism would be the wrong response to this challenge.”

Danilovich continued: “Trade and globalization are complex processes, but at their heart are some simple truths. Trade means more choice for consumers. It means lower prices, so the money in your pocket goes further. Companies that trade are more competitive, and create more and better-paid jobs. That’s why trade matters if we’re to deliver the increases in prosperity, and reductions in inequality, that G20 finance ministers rightly committed to realize this weekend.”

“The global business community is naturally concerned by any weakening of the G20’s decade-long stance on resisting protectionism. We remain encouraged that discussions on this issue will continue in the coming months at official level. ICC will do all it can to urge G20 leaders to take the strongest possible stance on maintaining open markets at their annual summit in Hamburg in July. Protectionism is no path to progress.”

Kazakhstan to Begin Accepting “Merchandise Passports”

Published on March 20, 2017

Baiterek TowerNew York, N.Y., March 21, 2017 – Kazakhstan is set to become the 77th member country to accept ATA Carnets for the temporary, duty-free importation of various types of goods, beginning April 1, according to the United States Council for International Business (USCIB), which administers the ATA system in the United States.

Known as “merchandise passports,” ATA Carnets are international customs documents that allow for the temporary importation of various types of goods, duty-free and tax-free, for up to one year. In most ATA member countries and territories, including Kazakhstan after April 1, Carnets cover import of professional equipment, commercial samples and items for display at exhibitions and fairs. The worldwide ATA Carnet system is overseen by the World Customs Organization and the International Chamber of Commerce (ICC), for which USCIB serves as the American national committee.

“The implementation of the ATA system demonstrates Kazakhstan’s commitment to promoting economic growth and trade facilitation,” stated USCIB President and CEO Peter M. Robinson. “Use of Carnets will make it easier for American and other foreign companies to do business with the country, while enabling Kazakhstan businesses easier access to the U.S. and global markets.”

The Republic of Kazakhstan is the ninth largest country in the world by area and is the world´s largest landlocked nation. ATA membership by the country – long regarded as a priority for other countries in the system – will significantly facilitate trade relations between Kazakhstan businesses and their foreign partners. The Chamber of International Commerce of Kazakhstan has been designated as the official guaranteeing organization for ATA Carnets in the country.

Prior to Kazakhstan, Brazil and Indonesia were the two most recent countries to join the global ATA Carnet system. More than 180,000 Carnets are issued every year worldwide, for goods with a total value of over US$21 billion. The United States is the third-largest user of ATA Carnets, following Germany and Switzerland. The Republic of Georgia is expected to join the ATA system in the near future.

Find out more about the services offered by USCIB to facilitate cross-border trade and investment at www.uscib.org.

Contact:
Jonathan Huneke, VP communications, USCIB
+1 212.703.5043 or jhuneke@uscib.org

About USCIB:

USCIB promotes open markets, competitiveness and innovation, sustainable development and corporate responsibility, supported by international engagement and regulatory coherence. Its members include U.S.-based global companies and professional services firms from every sector of our economy, with operations in every region of the world. With a unique global network encompassing leading international business organizations, including ICC, USCIB provides business views to policy makers and regulatory authorities worldwide, and works to facilitate international trade and investment.

UN Environment Assembly Focuses on Role of Business

Published on March 20, 2017
Kennedy at Nairobi UNEP Meetings
Kennedy representing the Business and Industry Major Group at UNEP meetings in Nairobi 

Norine Kennedy, USCIB’s expert on environment and climate change policy and one of two official business focal point representatives for the UN Environment Programme (UNEP), recently attended UN Environment Assembly (UNEA3) preparatory meetings in Nairobi (March 7-10). UNEA represents the world’s highest-level decision-making body on the environment with universal membership of all 193 UN Member States along with non-governmental organizations and the private sector. The meetings in Nairobi began discussions to develop a new framework of of pollution-related issues for potential decisions and pledges at UNEA3; a substantial element of this framework will be the role of business in causing, remediating and minimizing pollution. UNEA3 will take place from December 4-6 in Nairobi.

UNEA3’s theme will be, “Towards a Pollution Free Planet.”  In interventions during last week’s preliminary meetings, government and UNEP officials linked this broad topic with other policy concepts underpinning regulatory efforts, including the circular economy and sustainable consumption.   Several governments also emphasized connections with UN Sustainable Development Goals (SDGs).

“At this early stage, most attention seems to be directed at plastics in the marine environment, whether in the form of micro-plastics and smaller debris,  or as plastic bottles and plastic bags, with the push coming from Nordic countries, the EU and some African countries,” observed Kennedy. “Other issues under the other pollution sub-headings could still be proposed.

Led by UNEP Executive Director, Erik Solheim, and echoed by numerous government representatives, UNEA3 preparations for UNEA3 are placing a strong focus on business and industry as a source of solutions, resources, and actions, yet much needs to be done to afford adequate time and attention to contributions that business has made to addressing environmental challenges.  “In spite of extensive partnership and engagement by business with UNEP over decades, discussions last week frequently seemed to assume that business and industry was not already engaged in environmental and sustainability management,” noted Kennedy.   In her intervention on behalf of Business and Industry, Kennedy reminded governments and UNEP of the business community’s ongoing commitment to environmental stewardship and role in advancing innovative technologies to further all elements of sustainability.

Questions remain about how UNEP will identify and invite important business entities to the table, with an emphasis on geographical and sectoral representation, rather than anecdotal examples and individual CEOs.  USCIB will continue to advocate for U.S. business involvement and representation, working with UNEP and the U.S. Administration.

ICC Institute Advanced Training on the Conduct of the Proceedings and Case Management

Published on March 20, 2017

Registration is now open for the ICC Institute Advanced Training on the Conduct of the Proceedings and Case Management.

Location: San Francisco, CA

Description: This training is of an advanced level and will focus in depth on how the arbitrator should establish his or her authority over the parties throughout the proceedings, including hearings, and interact with his or her fellow-arbitrators. Attendees are supposed to already master the basics of ICC international commercial arbitration. The training will consist of presentations and interactive discussions using mock case scenarios designed to hone participants’ understanding of critical theoretical concepts while also emphasizing many practical aspects involved in conducting an international arbitration.

To register, please visit the registration website. Early Bird rate is available through March 31.

USCIB Experts Quoted in Journal of Commerce Articles on Trade

Published on March 20, 2017

container_shipUSCIB experts on trade and customs Rob Mulligan, senior vice president of policy and government affairs, and Megan Giblin, customs and trade facilitation director, were recently quoted in a Journal of Commerce article, “Trump administration unlikely to repudiate new WTO pact.” The article explores the state of bilateral and multinational trade agreements, such as the recent entry into force of the World Trade Organization’s (WTO) Trade Facilitation Agreement (TFA) and the future of the North American Free Trade Agreement.

JOC Special Correspondent Alan M Field wrote that despite the current administration’s aversion to multilateral agreements, it isn’t likely to repudiate the TFA. Field also quoted Mulligan’s views on this matter, “I don’t think that the administration has said much directly related to this agreement, but in some ways, I would expect that the provisions of this agreement are consistent with some of the things they have been saying about trying to open up borders and improve opportunities for U.S. business.”

Giblin agreed, stating that “it is important to recognize some of [the TFA’s] core messages. The TFA is critical to doing business, critical for companies. You’re going to get more transparency and predictability. The time-consuming processes at the border are going to be streamlined. You’re going to see goods moving more rapidly across the border. It’s expected to increase exports significantly.”

The full JOC story is available here, log-in required.

Giblin was also quoted extensively in a separate JOC story, “New WTO accord to speed customs clearance, cut costs” that takes a deeper dive into the TFA’s entry into force. Giblin was quoted on several aspects of the TFA, including the TFA’s value in allowing companies to understand quickly what the rules are and be able to export with assurance, “If everybody is providing the same level of transparency and ability [needed] to appeal decisions, then everyone will know how to operate,” she said. “That will lead to increased exports of products. And that will likely give a boost to the US economy and result in more jobs.”

The JOC story on TFA also quotes International Chamber of Commerce Chairman Sunil Bharti Mittal.