Business Urges Governments to Advance National Human Rights Action Plans

Published on November 15, 2016

USCIB Vice President Ariel Meyerstein (2nd from left) and IOE Secretary General Linda Kromjong (far right) at the UN Forum on Business and Human Rights

As the world’s largest annual gathering on business and human rights gets underway in Geneva this week, the private sector is calling on governments to heighten efforts to develop and implement national action plans.

Bringing together over 2,000 participants – including government, business, civil society and academia – the 2016 UN Forum on Business and Human Rights is a major opportunity to assess progress in relation to the United Nations’ Guiding Principles (UNGP) on Business and Human Rights, and other current business-related human rights issues.

Endorsed by the UN Human Rights Council in 2011, the Guiding Principles comprise 31 principles and commentary based on three pillars, implementing the UN’s “protect, respect and remedy” framework. They are a blueprint for what governments and companies need to do to put in place appropriate policies to respect human rights.

With only eight countries having implemented national action plans, USCIB and its global business partners are seeking to mobilize their national representatives to call on their respective governments to develop a national plan in order to align national laws with global standards.

In a joint statement, USCIB and other business groups issued a four-point paper stating that:

Business supports the UN Framework and Guiding Principles and wishes to see States implement the State Duty to Protect human rights
States should see NAPs as the opportunity to exercise leadership to build genuine commitment and
capacity to achieve tangible progress in standards, business behaviour and change for rights-holders
States should engage with the business community to learn from their experiences in dealing with
human rights commitments, and
State should use the NAPs as an opportunity for collective action.

Speaking during a forum panel on human rights and investment treaties, ICC Senior Policy Manager Viviane Schiavi underscored the world business organization’s pivotal role in promoting business implementation of the UN Guiding Principles, and highlighted how the newly launched 2012 ICC Guidelines for International Investment call on investing companies to respect the human rights of those affected by their activities, consistent with the UN Guiding Principles on Business and Human Rights. Read more on ICC’s website.

USCIB to Attend APEC Summit in Lima

Published on November 15, 2016

This week, USCIB President and CEO Peter M. Robinson will attend the Asia-Pacific Economic Cooperation (APEC) CEO Summit in Lima, Peru, as a business delegate and representative of the U.S. APEC Business Coalition. Attending with him will be Helen Medina, USCIB’s vice president of product policy and innovation.

Organized under the leadership of the National Center for APEC (NCAPEC) USCIB will be joining other Coalition and NCAPEC members on the ground, including CEOs and executives from USCIB member companies. NCAPEC serves as the designated 2016 U.S. Strategic Partner for the CEO Summit, Secretariat to the U.S. members of the APEC Business Advisory Council (ABAC) and as Chair and Secretariat of the U.S. APEC Business Coalition.

“APEC actively supports economic growth, regional cooperation, and trade and investment,” said Robinson. “USCIB welcomes the committed partnerships that APEC, as the top economic forum in the region, has sustained with the private sector to address the complex economic issues that face the region. It is a vital platform for addressing trade and investment, which is especially important now that prospects for U.S. ratification of the Trans-Pacific Partnership look cloudy.”

Throughout 2016, USCIB has addressed a number of issues through APEC to advance discussions across a range of issue. These include chemicals regulation, advertising self-regulation, data privacy, customs, digital trade, and women in the economy. Our members and staff have engaged in several APEC working groups, including the Chemical Dialogue, APEC Business-Customs Dialogue, Customs Procedures Virtual Working Group, Alliance for Supply Chain Connectivity, the Electronic Commerce Steering Group and Data Privacy Subgroup.

In Lima, Robinson and Medina will meet with USCIB members, leaders from APEC economies and representatives of intergovernmental organizations to discuss member companies’ APEC priorities and USCIB’s work. They look forward to hearing from USCIB members in Lima, in addition to joining with Coalition partners, to advance common objectives.

The upcoming APEC meetings in Lima include, in addition to the CEO Summit, the Concluding Senior Officials’ Meeting, Fourth APEC Business Advisory Council (ABAC) Meeting, APEC Ministerial Meeting and APEC Economic Leaders’ Meeting. As these meetings draw Peru’s host year to a close, USCIB has begun to gather priority issues from its membership for 2017, when Vietnam will serve as APEC’s host. We are continuing to collect input, and will shortly release our APEC Priority Issues and Recommendations for 2017.

ICANN Holds First Meeting Following Internet Domain Name System Transition

Published on November 15, 2016

The Internet Corporation for Assigned Names and Numbers (ICANN) wrapped up its latest global meeting of Internet stakeholders on November 9 in Hyderabad, India. The event attracted 3,000 registered participants from business, government, civil society and the technical community from 130 nations.USCIB Vice President Barbara Wanner helped spearhead a strong business contingent encompassing representatives of USCIB member companies and our overseas business partners.

The week-long conference was hailed by ICANN President and CEO Goran Marby as an “historical first meeting” following the transition of oversight of the Internet Assigned Numbers Authority (IANA), a set of core functions necessary for the running of the Internet domain name system, from the U.S. Commerce Department’s National Telecommunications and Information Administration (NTIA), to the multi-stakeholder Internet community, with safeguards to enable active involvement by the community in processes designed to hold ICANN accountable.

USCIB’s Wanner reiterated the business community’s fundamental support for the IANA transition. “This community-developed plan will best ensure the continued stability, security, and resilience of the domain name system as well as fundamental openness of the internet, all of which will provide the necessary conditions for continued business innovation, economic growth, and societal benefits,” she said in an address to delegates.

However, according to Wanner, the week-long meetings were not dominated by transition-related celebrations. “Rather, they focused on implementing post-transition changes as well as re-energizing work on domain name policy issues – which have traditionally served as the preeminent focus of ICANN meetings,” she said.

USCIB Statement on the U.S. Election Results

Published on November 9, 2016

New York, N.Y., November 9, 2016 – Terry McGraw, chairman of the United States Council for International Business (USCIB) and Peter Robinson, USCIB’s president and CEO, released the following statement on the results of the U.S. election:

“We congratulate Donald J. Trump on his election as our next President. It has been an intensely hard-fought campaign, and we look forward to Americans coming together behind shared values and a common purpose. We also congratulate the members from both parties elected to both houses of the 115th Congress.

“It is important for the United States to remain engaged globally and provide leadership on a range of issues affecting our national prosperity, including international trade, climate change, sustainability and support for a rules-based global economy.

“American companies are heavily invested in creating the conditions for expanded U.S. influence internationally and renewed investment and growth at home. USCIB is eager to work with the new Administration and Congress – and with the overseas business partners with whom we have established longstanding close ties – to focus attention on the key issues and initiatives that will undergird America’s growth and success, and strengthen the global economy, in the 21st century.

“The next Administration faces numerous challenges as it takes office. A top priority should be to develop and implement, in concert with the Congress, a strategy for U.S. engagement with the wider world – one that both continues and augments the benefits that American businesses, workers and consumers draw from active participation in the global economy and international institutions. We need policies that anticipate, address and support the demands of a changing American workplace, while addressing the legitimate needs of those displaced or disadvantaged by the 21st-century global economy.

“Such a strategy must recognize and build upon America’s strengths in innovation, entrepreneurship, world-class work force and know-how. It should further seek to leverage American business to reinforce U.S. global leadership, and effectively engage with multilateral institutions to foster international rules and a level playing field that support our competitiveness. It should also seek to make these institutions more accountable and representative of key global stakeholders, including the private sector, in pursuit of shared goals and values.

“We are ready to work with the new Administration and Congress to strengthen U.S. competitiveness, reap the gains from participation in global markets and trade, and deliver benefits in the form of jobs and opportunities for U.S. workers. These objectives can and must be pursued together.”

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. As the U.S. affiliate of the International Chamber of Commerce, the International Organization of Employers, and Business at OECD, USCIB provides business views to policy makers and regulatory authorities worldwide, and works to facilitate international trade and investment. More information is available at www.uscib.org.

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

As Paris Agreement Enters Into Force, What’s Next on Climate?

Published on November 8, 2016

kennedy_cop21 — USCIB Vice President Norine Kennedy at last year’s Paris climate summit

The Paris Climate Agreement entered into force on November 4, as a critical mass of countries and regions deposited their instruments of ratification with the United Nations. But this marks more of a beginning than an end, since national governments and the UN system still must determine future steps in greenhouse gas reduction and measures to adapt to climate change. As COP22 – the 22nd Conference of Parties to the UN Framework Convention on Climate Change – got under way in Marrakesh, Morocco, we spoke with Norine Kennedy, USCIB’s vice president for energy and environment and a longtime participant in the UN climate talks, about the importance of the Paris Agreement’s entry in to force, and about what comes next.

Q. Why should U.S. business be interested in the post-Paris discussions in the UN? Isn’t the ink dry and the rules set?

A. In fact, the Paris Agreement is not a finished product – the broad outlines and goals are indeed established, but key details on a number of critical issues to business, such as the role of various national and regional carbon markets, the tracking and updating of national pledges, and how technology innovation and potential liability for climate-related damages might be tackled are still works in progress. There is still an essential role for U.S. business to stay in touch with our government delegation to offer views and suggestions on thorny issues, and provide examples and other relevant information on business initiatives.

Q. What does Paris Agreement’s entry into force mean for the private sector?

A. While it’s usually accurate to characterize the UN as a slow-moving beast, in this instance the quick entry into force of the Paris Agreement triggers a rapid scramble by governments to resolve outstanding issues and define important rules that govern new policies, and the review of national actions, and drive the development of even more ambitious actions. The next two years will bring multiple fast-moving – by UN standards – decision-making deliberations across a number of key issues, and USCIB will continue to track those that most directly impact our members. Through our affiliations with the International Chamber of Commerce (ICC) and the Major Economies Business Forum (BizMEF), we are developing global business recommendations on the top-line issues that matter to U.S. business. This is important, because it means that USCIB recommendations are amplified to other governments, and strengthened by alignment with the broader international business community.

[CLICK to download new BizMEF statements on the role of business in the UN climate talks, implementing the Paris Agreement, national reporting and verification and greenhouse gas markets.]

Q. What are USCIB’s priorities when it comes to some of the unfinished business from last year’s climate summit in Paris?

A. As the structure of UN initiatives under the Paris Agreement take shape, USCIB is focused on ways to carve out a clear role for business input and representation in the process. We consider it fundamental, at both the national and international levels, for policy makers to consult with business on the economic and environmental aspects of climate policies. There is no doubt that the Paris Agreement will affect every business sector, across all types of commercial activity, in both the near and the long terms. So preserving and improving the UN system’s accountability and transparency, and creating new opportunities for the private sector to contribute, this is USCIB’s bottom line. This is especially important as some other UN forums, such as the World Health Organization, are actively seeking to limit or exclude business input. As we have said on many occasions, if a UN climate agreement doesn’t work for business, it simply won’t work.

Q. Any thoughts about the U.S. presidential election and its implications for the UN climate process?

USCIB has represented its members in the UN climate deliberations since 1993, which is to say, over the course of several U.S. administrations. They have each been different, and USCIB has adjusted accordingly while staying the course. The common thread for USCIB has always been the importance of U.S. business as solution providers and the need to have U.S. economic interests represented and furthered in international decision-making on climate change, regardless of who is in the White House or in control on Capitol Hill. The climate challenge is itself a long-term phenomenon that impacts regulations and energy access in all countries where U.S. companies operate, and which will also offer new market and innovation opportunities for U.S. business. USCIB intends to provide continuity and thought leadership on climate policy in the broader context of sustainability, to the next administration and to future administrations. We intend to help U.S. government decision makers and the UN system to develop policy frameworks that best address climate change while also facilitating cross-border trade, investment and innovation by U.S. companies.

Trade in the Digital Economy

Published on November 7, 2016

USCIB Senior Vice President Rob Mulligan (center) at the BIAC/Business at OECD Trade Committee meeting in Paris

On November 3, the Business at OECD (BIAC) Trade Committee met in Paris and received a briefing from Didier Chambovey, chair of the OECD Trade Committee. Chambovey provided an overview of the OECD’s key work streams and responded to questions from members about what the OECD is doing on digital trade, the future priorities for the WTO, and the nexus between trade and environmental policy. Rob Mulligan, USCIB’s senior vice president for policy and government affairs, who also serves as a vice chairs of the BIAC Trade Committee, attended on behalf of USCIB.

The BIAC committee also discussed updating its Trade Priorities paper to address the changing global environment and to include new issues for the OECD to tackle in its work. Members provided input at the meeting and a revised draft is being circulated for input with the goal of finalizing the updated paper early in 2017. The committee also agreed to update its papers on several issues related to Colombia accession to the OECD and agreed on talking points for BIAC intervention at the OECD Trade Committee meeting relating to agricultural trade policy, trade in environmental goods as contributing to sustainable development goals and climate change, and reforming trade in services.

Mulligan and several other BIAC members also participated in the Global Trade Forum hosted by OECD on November 2. Panels of experts addressed the topic of how policy development can keep pace with new business models and the emerging digital economy. Discussions focused on trade and investment linkages in global value chains, trade policy making in the digital economy, and managing disruption. Pat Ivory, vice chair of the BIAC Trade Committee, presented on the digital trade policy issues and highlighted the BIAC paper on cross-border data flows. A key takeaway from the forum was that an integrated suite of policies will be needed to address the declines in trade and productivity as well as the anti-globalization sentiment that has grown over the past few years.

The U.S. and Mexico Must Work Together as Neighbors

Published on October 31, 2016

USCIB Chairman Terry McGraw has joined with ICC Mexico Chair Maria Fernanda Garza in a joint appeal for the United States and Mexico to work together to address common challenges of trade, immigration and security.

In a joint op-ed in the Mexican newspaper El Financiero, the two business leaders urged their compatriots to reject the antagonism emanating from the U.S. campaign trail, reminding readers of the direct and measurable benefits the North American Free Trade Agreement has brought to both Mexicans and Americans alike.

McGraw and Fernanda Garza finished by reiterating that the business communities of both the United States and Mexico are united in their support for the Trans-Pacific Partnership, which they urged their respective legislatures to ratify without delay.

Please see below for the English translation of the op-ed. To read it in Spanish on El Financiero’s website, click here.

USCIB and ICC Mexico each serve as their country’s national committees of the International Chamber of Commerce.

The U.S. and Mexico Must Work Together as Neighbors

By Harold McGraw III and María Fernanda Garza

If the U.S. presidential campaign has reminded us of anything, it is the importance of neighborliness. Just as your own neighborhood deteriorates if you and your neighbors don’t communicate or work together well, so it is in business and international affairs.

Right now, on both sides of the U.S.-Mexico border, we face a stark choice: build walls, foster mistrust and disengage our economies – or work together to continue building shared prosperity. As representatives of the business communities from both nations, we strongly urge our fellow countrymen and our leaders to choose the latter course.

Since the North American Free Trade Agreement was negotiated more than 20 years ago, Mexico and the United States have enjoyed an increasingly close and mutually beneficial relationship that builds on our respective strengths and abilities, our vibrant economies and vast resources, our unique position as neighbors and, most importantly, our peoples. Mexico, the U.S. and Canada have turned North America into one of the most important and most dynamic free trade areas in the world. It has taken foresight and resolve.

Bilateral trade between Mexico and the U.S. has multiplied by six since NAFTA’s entry into force, reaching nearly $500 billion in 2015. Mexico is now the second-largest export market for U.S. goods and its second-largest supplier. It is estimated that U.S. trade with Mexico supports some six million American jobs.

With a growing, $1 trillion economy and a developing middle class that eagerly consumes U.S. and other foreign products, Mexico is the world’s 9th-largest world importer, and it buys 16 percent of everything the U.S. sells to the world. It is the largest export market for California, Arizona, New Mexico and Texas, and one of the three most important export markets for 29 other U.S. states.

This burgeoning trade relationship is built upon regional economic integration, cooperation and capitalizing on both nations’ competitiveness. Bilateral trade often occurs in the context of shared production, where manufacturers on each side of the border work together to produce goods. The development of robust supply chains as a result of NAFTA has translated into highly integrated trade in such key industries as automobiles, aerospace and electronics.

For instance, Mexican exports to the U.S. contain 40 percent of U.S. value-added, which is much higher than those from South Korea or China which are at five percent and four percent, respectively.

The U.S. and Mexico have a shared interest in fostering economic integration in North America, which is becoming, once again, the most competitive region in the world. Among other things, both countries need to ensure an efficient and secure border, the development of human capital for innovation and the growth of the services sector.

Businesses on both sides of the border firmly believe that the Trans-Pacific Partnership (TPP) will further strengthen Mexico-U.S. relations, North American competitiveness and our shared prosperity by encouraging competition and setting new and modern disciplines in the Asia-Pacific Region. With TPP, North America will become an even more important export platform to the world, with the consequent creation of jobs. We therefore are urging our respective legislatures to quickly ratify the TPP.

Especially in the face of growing protectionist and isolationist sentiment, we cannot stress strongly enough the critical importance of closer cooperation between our two governments in fostering a strong U.S.-Mexico relationship – one that contributes to shared economic growth, competitiveness and prosperity throughout North America. As neighbors, we have a shared responsibility to keep the neighborhood safe and prosperous.

Harold McGraw III is chairman of the United States Council for International Business. Maria Fernanda Garza chairs the Mexican chapter of the International Chamber of Commerce.

Labor and Corporate Responsibility Committees Meet in Washington

Published on October 31, 2016

USCIB’s Corporate Responsibility Committee and Labor & Employment Policy Committee held the fall installment of their biannual meetings October 19-20 at the offices of Covington & Burling in Washington D.C. The meetings comprised a day and a half of panels, bringing in speakers from business, government and civil society, along with robust discussion on issues of business and human rights. The 2016 fall meetings set a new participation record for the committees, with attendance by over 60 representatives from 35-plus companies.

Laura Chapman Rubbo (Disney) chaired the meetings and facilitated discussions, with support from Tam Nguyen (Bechtel), who serves as vice-chair of the Corporate Responsibility Committee, and Ariel Meyerstein, USCIB’s vice president of labor affairs, corporate responsibility and governance.

The keynote address was given by Ambassador Patricia Haslach, principle deputy assistant secretary in the State Department’s Economic Bureau. Other State Department speakers included Andrew Keller, director of sanctions policy and implementation and Melike Yetken, senior adviser for corporate social responsibility and the U.S. “national contact point” for the OECD Guidelines on Multinational Enterprises. Keller and Yetken discussed the impact of sanctions and shareholder resolutions on human rights, and developments concerning the OECD guidelines, respectively. Other speakers included former State Department official Alan Larson (Covington & Burling), Arvind Ganesan, who leads Human Rights Watch’s private sector engagement, and Carolyn Fisher (PepsiCo).

A considerable part of the agenda was devoted to the issue of forced labor. One panel covered elimination of the consumptive demand exception under the Tariff Act of 1930’s ban on importation of goods made with forced/child labor, with updates from Ken Kennedy, labor affairs policy adviser at U.S. Immigration, Customs & Enforcement (ICE), Jerry Malmo of the commercial enforcement division at U.S. Customs & Border Patrol (CBP), and Megan Giblin, USCIB’s director of customs policy.

Other meeting topics included company efforts to combat forced labor, with presentations given by a variety of companies across a wide range of industries, and a discussion on the UN Guiding Principles Reporting Framework, led by Shift Project, who was heavily involved in the development of the Reporting Framework. The second day included a conversation with Deborah Greenfield, deputy director general of policy with the International Labor organization, on the ILO’s work plan following this past June’s discussion on “Decent Work in Global Supply Chains.”

USCIB’s Corporate Responsibility and Labor & Employment Policy Committees will reconvene in the spring of 2017.

Gender Workshop Spotlights Importance of Education

Published on October 31, 2016

L-R: Nicole Primmer (BIAC), keynote speaker Julia Goodfellow, Ronnie Goldberg (USCIB), former BIAC Chair Charles Heeter — L-R: Julia Goodfellow (University of Kent), Ronnie Goldberg (USCIB), former BIAC Chair Charles Heeter

On October 24 in Paris, Business at OECD/BIAC hosted its third workshop on gender equality, addressing the third “E” of the OECD Project on Gender — “Education.” The workshop presented business initiatives that promote lifelong training and education of women, explored questions related to soft skills and career preferences, and discussed the impact of the digital economy and developments in technology for women at work. This year’s workshop was sponsored by Deloitte and Dell.

The focus was on STEM education. Keynote remarks were delivered by Dame Julia Goodfellow, vice chancellor of the University of Kent, who discussed the differences in subjects studied by women and men at universities (almost 70 percent of students studying languages are female, while almost 80 percent of students studying computer science are men), as well as obstacles women face in the later stages of their careers.

USCIB Senior Counsel Ronnie Goldberg provided on overview from the business perspective. She recounted that the first BIAC gender equality workshop had focused on “Employment,” including the “leaking pipeline” of female leadership. The second BIAC workshop shifted its gaze to “Entrepreneurship,” addressing women in the ICT sector and key activities for companies around the world in supporting women entrepreneurs, such as providing finance, mentoring and leadership. Goldberg discussed how since these two workshops, progress on gender equality has not come as fast as desired. She said this is because changes involve not only policy, but also shifts in social and cultural attitudes.

The first panel was full of updates by ambassadors to the OECD from Canada, Germany and Chile, as well as from the OECD secretariat. They discussed the status of women at work in their respective countries, and outlined various initiatives taken by government to support girls and women in STEM fields. The second panel looked at soft skills, training and education, and how to leverage gender balance for business success. Speakers, including USCIB member Coca-Cola, discussed efforts to mitigate unconscious and implicit bias, the link between having female leadership to better understand consumers, who are often women, and once again, understanding the reasons for the “leaking pipeline” and how to prevent such leaks.

A working lunch was led by representatives from Deloitte, who discussed the lack of women in STEM subjects not related to healthcare, using the United Kingdom as an example, and how to change this outlook for women in STEM. Suggestions included starting in early schooling, by giving young girls greater exposure to female professionals working in STEM and mitigating unconscious reinforcement of gender stereotypes.

The last session centered on the impact of the digital economy — on women in ICT sectors, how companies are educating women on technology, and how both women and companies are using technology to grow professionally. ICT company representatives, such as USCIB members IBM, Google and Dell, emphasized the benefits of having female employees, and discussed individual company initiatives to encourage young women to enter digital careers. Speakers stressed the importance of encouraging young girls’ confidence about their skills in STEM subjects, and the importance of demystifying the actual skills needed to succeed in the digital economy.

BIAC will release a report of the workshop and the issues raised during discussions. Reports from the previous workshops can be found here.

Despite Clampdown, High-Seas Piracy Still a Threat

Published on October 31, 2016

Kidnapping and hostage-taking persists off the coasts of West Africa and South East Asia, despite a 20-year low in piracy on the world’s seas, according to new figures from the International Chamber of Commerce‘s International Maritime Bureau (IMB).

IMB’s latest global piracy report shows that pirates armed with guns or knives took 110 seafarers hostage in the first nine months of 2016, and kidnapped 49 crew for ransom. Nigeria, a growing hotspot for violent piracy and armed robbery, accounts for 26 percent of all captures, followed by Indonesia, Malaysia, Guinea and Ivory Coast.

But with just 42 attacks worldwide this quarter, maritime piracy is at its lowest since 1996. IMB’s Piracy Reporting Center has recorded 141 incidents so far this year, a 25 percent drop from the same period in 2015. A total of 111 vessels were boarded, five were hijacked, 10 were fired at, and a further 15 attacks were thwarted.