Governments Actively Engaged at WTO E-Commerce Negotiations

In an effort to support e-commerce negotiations at the World Trade Organization (WTO), USCIB has been contributing to the Digital Trade Network, led by Nick Ashton-Hart.

Ashton-Hart participated in the Joint Statement Initiative on E-commerce’s (JSI) first substantive negotiating round in Geneva May 13-15, which was based upon a subset of the subjects in the 14 contributions of WTO Members. Topics covered included online consumer protection, electronic authentication and electronic signatures, Electronic transactions framework, domestic regulation, transparency, non-discriminatory treatment of digital products, and many others.

According to Ashton-Hart, the level of engagement was quite high, the tone very constructive and collaborative, and quite a few countries that have not yet tabled proposals said they expect to do so. There was a general view that the services-related elements of the outcome agreement are intended to build upon GATS though it remains an open question what form the agreement will take – not surprising or seen as controversial at the present.

The next session will take place June 18-20, in Geneva, with proposals to be considered due June 6. The session will cover, among other subjects, privacy and data protection, cybersecurity and telecommunications. There will be at least two seminars from industry groups on logistics and the flow of data respectively.

Earlier this year, Ashton-Hart contributed a column in USCIB’s quarterly magazine, International Business, regarding the importance and impact of these global talks on online trade. Click here to view.

Doran Klein Contributes Expertise on Taxation of Digitalizing Economy at Pacific Rim Conference

USCIB’s tax expert Carol Doran Klein presented at the ninth annual Pacific Rim Tax Conference on Digital Economy Tax Issues, held May 9-10 in California. Doran Klein’s panel covered the ongoing work on taxation of the digitalizing economy at the Organization for Economic Cooperation (OECD) and the United Nations. The panel provided an overview of the background including Action 1 of the OECD’s Base-Erosion and Profit Shifting (BEPS) project, digital services taxes and other unilateral interim measures, and the different options under consideration at the OECD.

Other topics covered at the conference included: International Aspects of Tax Policy and Enacted Legislation: Did it Work?; Corporate Restructuring in Light of Tax Legislation and BEPS; and Transfer Pricing, Documentation and International Tax. High-level government tax officials from Australia, Canada, India and Vietnam attended the conference as well.

USCIB will be hosting its own tax conference, alongside the OECD and Business at OECD June 3-4 in Washington DC. Now in its 14th year, this annual conference provides a unique opportunity for the U.S. business community to interact with key representatives from the OECD Centre for Tax Policy and Administration (“CTPA”) as well as key members of the OECD’s Committee on Fiscal Affairs.

For more information visit USCIB’s tax conference registration page.

USCIB Shapes Launch of OECD Review of Privacy Guidelines

The Organization for Economic Cooperation and Development (OECD) held a special OECD workshop on May 6 aimed at advancing the mandated five-year review of the 2013 OECD Guidelines Governing the Protection of Privacy and Transborder Flows of Personal Data (the “Privacy Guidelines”). A Privacy Guidelines Expert Group (PGEG), which was established earlier this year to advise and provide input to the review, proposed exploring organizational accountability via this workshop as one of the key challenges in implementing the 2013 Privacy Guidelines.

Barbara Wanner, who leads USCIB’s work on ICT policy, attended the meetings along with several USCIB members from AT&T, Facebook, Google, Mastercard, and Microsoft.

“Business underscored the importance of assuming responsibility for the privacy of data through its life cycle by conducting rigorous and documented risk assessments and mitigation, ensuring transparency through both internal and external audits, continually monitoring and testing to prevent gaps, and generally going above and beyond what is required by law,” said Wanner.

USCIB members also took the lead in drafting a Business at OECD (BIAC) statement setting forth BIAC’s priorities for the OECD’s review of the 2013 Privacy Guidelines.

“This statement will inform BIAC interventions in Privacy Guidelines Review in the coming months and help to shape refinements to 2013 Privacy Guidelines that ensure its continued relevance as a global standard for privacy frameworks as the digital economy continues to evolve,” added Wanner.

The OECD also held its meetings of the Committee on Digital Economy Policy (CDEP) Working Party Security and Privacy in the Digital Economy (SPDE) from May 6-7. The Committee moved forward work focused on revising an OECD Recommendation on the Protection of Children Online, developing principles for access to and sharing of data, advancing the Global Forum for Digital Security for Prosperity, and adopting the draft Recommendation on Artificial Intelligence. The Working Parties on Communication Infrastructures and Services Policy (CISP) and Measurement and Analysis in the Digital Economy (MADE) met during this period as well. CISP agreed to undertake an ambitious review of the OECD’s 2004 Recommendation on Broadband Development.

USCIB Co-Sponsors Reception to Promote OECD Trade Priorities

Dominik Kümmerle (Business at OECD), Cliff Sosnow (Business at OECD Trade Committee), Pat Ivory (Ibec, Business at OECD Trade Committee), Eva Hampl (USCIB), Russell Mills (Business at OECD), Julia Nielson (OECD Trade Directorate)

USCIB Senior Director for Trade, Investment and Financial Services Eva Hampl joined global business colleagues from Business at OECD and Irish Business (Ibec) to co-sponsor a reception in Paris on April 25 to officially launch a report “Business at OECD Considerations for Trade and Investment – Priorities for Future OECD Work.” Th event was held in conjunction with the OECD Trade Committee meetings which took place the week of April 22, and built on the report by reinforcing the relationship between Business at OECD and the OECD Trade Committee.

Chair of the OECD Trade Committee Ambassador Didier Chambovey, who serves as head of the Swiss Permanent Mission to the WTO and EFTA, made a few opening remarks at the reception, underlining the importance of the relationship between Business at OECD and the OECD Trade Committee. Pat Ivory, vice chair of the Business at OECD Trade Committee joined Hampl in making a few comments, highlighting issues of importance to Business at OECD and USCIB’s respective economies and business more broadly.

In her remarks, Hampl noted the challenges the global economy is faced with in the midst of so many countries turning inward denouncing globalization and promoting protectionist policies. “In that context, the most effective way to push back is with empirical evidence—on issues like services, global value chains, policies related to national security and the danger of trade restrictive measures such as tariffs or quotas to the global trading system,” said Hampl. “We must look to the future of the global economy; that is why the work that is currently being done on digital trade at the OECD is invaluable to business – all of our companies operate in the digital space and understanding exactly how the digital economy works is key to successfully regulating this space.

While in Paris, Hampl also attended the OECD Trade Committee meetings April 22-26. According to Hampl, while there were many issues on the agenda, the clear focus across the board was on digital trade. “While the OECD does not directly engage in the WTO E-Commerce negotiation, there is a keen awareness the role the analytical work done at the OECD can play in advancing the negotiations at the WTO,” said Hampl. To that end, Business at OECD circulated a paper on what business is looking for in the WTO E-Commerce negotiations and how the OECD can contribute to the effort.

In addition to attending the official sessions of the OECD Trade Committee, where Business at OECD made interventions on the preparations for the Ministerial Council Meeting (MCM) in May 2019, the Interim Economic Outlook, and Digital Trade, Business at OECD also held its own meeting focused on business priorities. That meeting included an extensive exchange on the Committee’s priorities and next steps where much of the conversation centered on digital trade in its various forms, but also addressed broader issues like China and the state of the global economy. A dinner with OECD leadership also provided a great opportunity to informally exchange views on these important issues.

 

USCIB Meets With WTO Deputy Secretary General Alan Wolff

Right: Alan Wolff (WTO) speaks to USCIB members alongside Rob Mulligan (USCIB)

USCIB hosted the World Trade Organization’s (WTO) Deputy Secretary General Alan Wolff on April 29 at its Washington office.

The meeting, which was attended by many USCIB members, including Chubb, Eli Lilly, Pfizer, Visa and Verizon, provided an opportunity for USCIB staff and members to get Wolff’s insights into the current working of the WTO, raise questions about key initiatives such as e-commerce, discuss emerging proposals for reform of the WTO and identify key concerns for U.S. companies on global trade. Wolff began his four-year term as deputy director general in 2017.

“Alan is a leading voice on trade policy in Washington, DC who often participated in the USCIB Trade and Investment Committee meetings and has a long history of working in key trade roles in the government and the private sector,” said USCIB Senior Vice President for Policy and Government Affairs Rob Mulligan. “We look forward to continuing our engagement with him as the WTO reform process gets underway.”

USCIB has been active on WTO reform, voicing concerns many U.S. companies share. Earlier this month, USCIB Vice President Shaun Donnelly traveled to Sao Paolo, Brazil for a day-long seminar organized by CNI, the Brazilian industry confederation. Donnelly was joined by private-sector groups from Argentina, Brazil, the European Union, and Mexico in a joint statement of the critical importance the WTO is to business.

USCIB Joins Coalition in Urging Specific US Government Action on US-China Trade

USCIB joined Americans for Free Trade, a multi-industry coalition consisting of over 150 members, to send a letter to President Donald Trump on April 22 regarding upcoming U.S.-China trade talks.

The Coalition letter urged the U.S. government to fully and immediately remove all recently imposed tariffs, including U.S. tariffs and China’s retaliatory tariffs as part of a final deal, while also encouraging the U.S. to come up with a deal that levels the playing field for U.S. companies by achieving meaningful changes to address China’s unfair trade practices that put American technology, innovation and intellectual property at risk.

Regarding unfair trade practices, the letter stated: “For too long, China has engaged in unfair trading practices, including forced technology transfer, cyber theft, intellectual property violations and more. We hope any final deal will resolve the structural issues that are at the core of the trade dispute in order to fully protect American technology, innovation, and intellectual property.”

The letter also urged the government to avoid any enforcement mechanism that would trigger further tariffs and obtain clarity on how the tariff exemption process will be carried out in the event of a deal.

Finally, the group also urged an economic assessment by the Administration examining the costs of tariffs for American businesses and consumers.

Americans for Free Trade represents companies that employ tens of millions of American workers and provide goods and services to virtually every corner of the United States.

Latest US Business Tax Dialogue With OECD to Focus on Digitalization

Washington, D.C., April 23, 2019 – With national governments weighing the tax implications of the digitalization of the economy, the G20 has called on the Paris-based Organization for Economic Cooperation and Development (OECD) to deliver a solution by 2020 to address the matter. Against this backdrop, American and other global companies will meet with key officials from the OECD and national governments at a high-level conference, June 3-4 in Washington, D.C.

The 2019 OECD International Tax Conference, which will take place at the Four Seasons Hotel, will provide a unique opportunity for business experts to interact directly with key leadership from the OECD’s Center for Tax Policy and Administration (CTFA), along with senior tax officials from the United States and other OECD countries.

The conference is the 14th annual gathering on global tax policy developments convened by the United States Council for International Business (USCIB), in cooperation with the 36-nation OECD and its official private-sector advisory body Business at OECD (also known as BIAC). Details on the event are available at www.uscibtax.org.

“With the taxation of the digitalizing economy on a fast-track at the OECD, this year’s conference comes at just the right time,” said USCIB President and CEO Peter M. Robinson. “All companies are potentially affected by the changes that are being considered. We will also be looking closely at tax and development policy, the latest developments in tax treaties, transfer pricing and the tax implications of Brexit. It’s really a must-attend event for global tax professionals.”

Key speakers at this year’s conference include:
Pascal Saint-Amans – Director of the Center for Tax Policy & Administration, OECD
Grace Perez-Navarro – Deputy Director of the CTPA, OECD
Martin Kreisenbaum – Director General, International Taxation, German Ministry of Finance
Lafayette (Chip) Harter – Deputy Assistant Secretary for International Tax Affairs, U.S. Treasury
Dr. Ngozi Okonjo-Iweala – Economist and International Development Expert (Nigeria)
Doug O’Donnell – Commissioner, Large Business and International Division, IRS
Mike Williams – Director of Business and International Tax, HM Treasury (UK)
Will Morris – Chair, BIAC Committee on Taxation and Fiscal Affairs
Bill Sample – Chair, USCIB Tax Committee

The tax event continues USCIB’s fruitful collaboration with the OECD and BIAC on digital economy topics, following upon a USCIB-hosted March conference in Washington, D.C. on the OECD’s “Going Digital” project.

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, generating $5 trillion in annual revenues and employing over 11 million people worldwide. As the U.S. affiliate of the International Chamber of Commerce, the International Organization of Employers, and Business at OECD (BIAC), 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

USCIB Participates in UNCTAD E-Commerce Week in Geneva

USCIB Senior Director Eva Hampl

Last week, USCIB Senior Director for Investment, Trade and Financial Services Eva Hampl attended E-Commerce Week hosted by the United Nations Conference on Trade and Development (UNCTAD) in Geneva. The theme of the week was “From Digitalization to Development” and included over 1400 participants from government, private sector, and civil society from around the world. Many of the thematic sessions addressed negotiations of an e-Commerce agreement expected to begin soon at the World Trade Organization (WTO).

Seventy-six WTO members, accounting for 90% of global trade in electronic commerce, endorsed the negotiation of a high-standard agreement in January of 2019 at the World Economic Forum (WEF) in Davos, Switzerland. USCIB supports these negotiations and is looking forward to a high-standard outcome on digital trade issues affecting business.

The UNCTAD meetings also included several sessions of the Intergovernmental Group of Experts on E-Commerce and the Digital Economy, which Hampl joined as a member of the Digital Trade Network (DTN), making substantive contributions on issues of data flows and localization policies.

“Given the broad UN membership, there continues to be push-back from certain countries to UNCTAD engaging on this issue,” reported Hampl. “UNCTAD leadership, however, made it clear in various meetings that there is broad support for negotiations on electronic commerce moving ahead at the WTO, and on general work on digital trade moving forward. This positive momentum is also shared by the WTO, where the work is progressing, and expected to move forward this year.”

APEC Workshop Emphasizes Crucial Role of Business

L-R: Matías Pinto Pimente (Embassy of Chile), Monica Hardy Whaley (NCAPEC) at APEC Essentials Workshop

USCIB partnered with the National Center for APEC (NCAPEC) and C&M International to host an APEC Essentials workshop on March 27 to help participants understand the fundamentals of APEC including its history, objectives and opportunities. The event, which attracted approximately 80 attendees, featured practical case studies led by industry discussants on how several sectors approach priority issues and leverage the APEC platform.

Private sector participation in APEC is organized under the leadership of the NCAPEC, which serves as the designated 2019 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.

USCIB President and CEO Peter Robinson makes remarks at the APEC Essentials Workshop

“APEC is an incubator where economies and business can come together in a non-competitive, mutually supportive way,” said USCIB President and CEO Peter Robinson, who gave welcoming remarks and moderated one of the panels. “APEC member economies do not need to worry about binding treaties but indirectly they can influence what’s going on in the world, such as in customs and trade and environmental goods. APEC sets an example. Too many international organizations are shutting out the private sector. APEC welcomes the private sector and other stakeholders and that’s one of the reasons it gets things done.”

USCIB addressed a number of issues through APEC to advance discussions across a range of issues including chemicals regulation, advertising self-regulation, data privacy, customs and digital trade. USCIB 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.

USCIB’s Customs and Trade Facilitation lead Megan Giblin, alongside Customs colleagues

The program featured Matías Pinto Pimente, head of the economic department and trade commissioner at the Embassy of Chile in Washington DC; Emily Fischer, principal APEC coordinator, economic policy advisor, U.S. Department of State; Jillian DeLuna, director for APEC affairs, Office of the U.S. Trade Representative; Monica Hardy Whaley, president, National Center for APEC; and Ambassador Robert Holleyman, president and chief executive, Crowell & Moring International; Partner, Crowell & Moring; former Deputy U.S. Trade Representative.

Chile will host this year’s APEC meetings.

USCIB Gathers Stakeholders to Discuss OECD Digital Project 

USCIB President and CEO Peter Robinson at the 2019 Going Digital Conference

The OECD Summit on Going Digital, held March 11-12 in Paris, presented the main findings and policy messages of the OECD’s two-year Going Digital Project. In light of this milestone, USCIB teamed up with the OECD and Business at OECD to organize an event in Washington DC on March 25 bringing together over fifty representatives from U.S. government, the private sector and press to discuss outcomes and next steps.

The March 25 Conference, hosted by the AT&T Forum for Technology, Entertainment and Policy, introduced the Going Digital Toolkit and included in-depth discussions on indicators, experiences and innovative policy practices, particularly as they relate to economic growth and societal well-being, privacy, security against cyber-threats, as well as harnessing the power of Artificial Intelligence (AI) for economic and social prosperity.

Corporate Vice President and Deputy General Counsel of Microsoft and Co-Chair of the Business at OECD Committee on Digital Economy Policy Julie Brill gave opening remarks, praising the OECD project. “The global digital project will serve as a foundation for policymakers around the world to ensure that the technological revolution is a catalyst for inclusive growth that benefits all,” said Brill. “The timing couldn’t be more appropriate or more important.”

Common themes that emerged among panelists and participants included emphasis on economies to invest in people through increased access to STEM training, innovative use of apprenticeships and skills-based training and retraining programs to ensure that the work force is adaptable and is prepared for the challenges of the future. There was also consensus on the need to reduce barriers to promote AI innovation and application to realize more of the potential of AI in providing new opportunities and even creating new sectors of industries. At the same time, governments need to establish principles to ensure public trust and confidence in AI technologies.

“The OECD undertook the Going Digital Project at a time when other multilateral organizations and individual countries were responding to the digital transformation of the economy in a way that undermined the potential economy and societal benefits,” said Barbara Wanner, USCIB vice president for ICT policy. “USCIB members appreciate how the OECD has navigated the plethora of conflicting views and developed sound, evidence-based recommendations that can guide countries and organizations to benefits of digital innovation. We look forward to shaping the all-important Phase 2 of the project, which will focus on practical steps.”

OECD’s Andy Wyckoff

Other speakers at the conference included OECD Director for Science Technology and Innovation Andy Wyckoff, Director for International Communications, Information, and Emerging Technologies from the U.S. Department of State Adam Lusin as well as The White House Assistant Director for Artificial Intelligence, Office of Science and Technology Lynne Parker.

The day-long event titled, Going Digital: OECD Insights for a Changing World, was dedicated to the late Joseph Alhadeff and commemorated his decades-long leadership and contribution to the ICT space both domestically and globally. Alhadeff was a long-time USCIB supporter, colleague and mentor who served on the USCIB Board and was a Vice Chair of the USCIB ICT Policy Committee for over 15 years.