Industry Appeals to China on Cybersecurity Law

With China’s broad cybersecurity law set to take effect next month, USCIB has joined with a range of industry groups from the United States and other countries in appealing for the country to delay its entry into force. Among other things, the new law would give law enforcement enhanced authority to access private data and require data to be stored servers located in China.

In a joint letter, the business groups said they are “deeply concerned that current and pending security-related rules will effectively erect trade barriers along national boundaries that effectively bar participation in your market and affect companies across industry sectors that rely on information technology goods and services to conduct business.”

The letter called on China to ensure that cybersecurity regulations comply with China’s World Trade Organization (WTO) commitments and encourage the adoption of international models that support China’s development as a global hub for technology and services.

B20 Issues High-Level Digitalization Statement

blue tone city scape and network connection conceptThe B20 issued a high-level statement on “Digitalization for All: Towards an Inclusive Interconnected World” which was signed by fifty leading business representatives including USCIB President and CEO Peter Robinson, who serves as co-chair of the Employment and Education Task Force. The high-level statement emphasizes the benefits of digitalization, from boosting consumer welfare to facilitating equality, and highlights it as a critical cross-sectoral and cross-cutting mean to achieve the Sustainable Development Goals (SDGs) and the Addis Ababa Action Agenda. However, obstacles remain in terms of inadequate internet access, insufficient broadband coverage and the need to build skills to realize the full potential of the digital economy.

The statement recommends public-private collaboration to better prepare business and people for the digital economy and the need to regularly adjust curricula in schools, continuing education and requalification programs, especially for women and girls. The statement notes that Small and Medium Enterprises (SMEs) also need government support in increasing knowledge exchange and fostering expertise on technology application.

In addition to Robinson, signatories include Tom Donohue, co-chair of the Employment and Education Task Force and president of the U.S. Chamber of Commerce and a USCIB Trustee, Daniel Funes, chairman, International Organization of Employers and co-chair of the Employment and Education Task Force and Sunil Bharti Mittal, chairman of the International Chamber of Commerce and co-chair of the Trade and Investment Task Force.

The B20 Task Force on Digitalization also released a policy paper on “Digitalization for All: Future-Oriented Policies for a Globally Connected World.” Key recommendations in the policy paper include: (1) fostering global connectivity, which includes improving cybersecurity and enabling cross-border data flows; (2) strengthening Industry 4.0 and the Industrial Internet by fostering innovation and ICT infrastructure deployment; and (3) supporting the evolution of human-centric artificial intelligence (AI) and related technologies.  USCIB actively contributed to this paper.

Business Finalizes Recommendations to G20 Sherpas

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.”

Wanner Represents Business at ICANN Meetings in Denmark

Wanner at ICANN Meetings in Copenhagen, Denmark.
Wanner at ICANN Meetings in Copenhagen, Denmark.

USCIB vice president for ICT policy, Barbara Wanner, attended meetings of the Internet Corporation for Assigned Names and Numbers (ICANN) in Copenhagen, Denmark last week, concluding a first of three rounds of meetings scheduled for 2017. Wanner joined 2,400 participants from business, government, civil society, and the technical community for a six-day meeting largely focused on domain name system (DNS) policy issues and inter-stakeholder discussions.

Wanner participated in DNS related meetings in her new capacity as the Business Constituency representative to the Commercial Stakeholder Group, enabling greater input to policy discussions at the executive committee level on behalf of USCIB members.

A noteworthy addition to this meeting – and reflecting heightened global concerns about protections of personal data – was a special “privacy summit,” which featured senior privacy officials from the Council of Europe and EU Article 29 Working Party. “An important result of the “summit” was recognition by the ICANN community of the need for timely, legal analysis of the implications of the EU’s General Data Protection Regulation, which goes into effect May 28, 2018, on the processing of data related to domain name registrations and related contractual obligations of companies that register domain names,” observed Wanner.

Washington Conference Looks at OECD’s Role in Fostering Digital Transformation

OECD Deputy Secretary General Doug Franz
OECD Deputy Secretary General Doug Franz

Cross-border trade in digital goods and services has grown 45-fold over the past decade. How can policy makers and the business community work together to ensure that new technologies and digital applications can lead to a more prosperous, productive, inclusive and socially beneficial world? And what lessons can be learned from current discussions and related work within the 35-nation Organization for Economic Cooperation and Development (OECD)?

This was the focus of a conference today in Washington, D.C., “Facilitating Digital Transformation: The OECD’s Role,” organized by the USCIB Foundation, the educational arm of the United States Council for International Business (USCIB), in partnership with the OECD and Business at OECD (BIAC).

In opening keynote remarks, David Redl, chief counsel for communications and technology at the Energy and Commerce Committee, U.S. House of Representatives, compared extending broadband access to the construction of the interstate highway system. “Despite everyone’s best efforts, there are still parts of the United States that lack the infrastructure to meet universal availability and adoption,” he stated. Redl said government spending alone won’t get the job done. “We must also foster investment in U.S. networks, streamline regulation, and improve online trust and security to bring the benefits of the Internet to every American.”

OECD Deputy Secretary General Douglas Frantz identified several factors as key to ongoing digital transformation: improved communications infrastructure and services, new and innovative business models, improved consumer trust and privacy protection, effective policy making, and a robust approach to the challenges and opportunities posed by improvements in artificial intelligence (AI). On the latter point, he proposed that the OECD work toward some sort of policy instrument to address AI.

Andrew Wycoff, director of the OECD’s Directorate for Science, Technology and Innovation, outlined the OECD’s work to assess the G20 economies’ uneven progress to date toward enabling the digital transformation. He said the OECD’s upcoming policy recommendations would focus on the importance of boosting investment in digital infrastructure, ensuring competition in the ICT sector and the broader economy, and establishing sufficient trust in the digital economy while also making it truly inclusive.

Jacqueline Ruff, Verizon, gives remarks during panel
Jacqueline Ruff, Verizon, gives remarks during panel

During an industry roundtable on emerging technologies, Jacqueline Ruff, vice president for international public policy and regulatory affairs with Verizon, said public policy will be important to remove barriers to the deployment of fifth-generation wireless technology, while creating a pro-investment environment. “They key to 5G will be smart communities,” she stated.

Other conference panels examined questions of equity and potential negative effects of digital technologies, as well as ways to enhance trust in an increasingly connected world. Organizers said the event would help steer discussion toward practical measures to maximize the benefits of new technologies. Panelists also focused on jobs, as well as education and skills-development challenges and opportunities, posed by digital transformation and the efforts by companies, such as IBM, to create “new collar jobs” enabling a segment of workers in more mature industries to become productive participants in the digital economy.

“Getting policy right for digital innovation is a critical factor for economic competitiveness, for trust and confidence in the digital environment, and ultimately for societal well-being”, said Bernhard Welschke, Secretary General of Business at OECD. “We need to communicate the benefits of digital transformation and Business at OECD will continue to work closely with the OECD on this challenge.”

USCIB President and CEO Peter Robinson stated: “We hope that today’s discussions will enable those who may not participate directly in OECD meetings to learn more about the OECD’s work and its value to the process and substance of crafting sensible, effective policy and regulation. Whether it is in providing frameworks, or in the development of consensus-based guiding principles, the OECD has a lot to offer and think about.”

USCIB, OECD and BIAC Leadership Discuss Trade, Digital Revolution

Rob Mulligan, Senior Vice President, Policy and Government Affairs addresses OECD and USCIB members, alongside USCIB President and CEO Peter Robinson (center) and Rick Johnston, Citi (left)
Rob Mulligan, Senior Vice President, Policy and Government Affairs addresses OECD and USCIB members, alongside USCIB President and CEO Peter Robinson (center) and Rick Johnston, Citi (left)

USCIB hosted leadership from the Organization for Economic Cooperation and Development (OECD) and Business at OECD (BIAC) on March 9 in Washington DC, following a successful joint OECD-BIAC-USCIB Fostering Digital Transformation Conference the day prior. Nearly forty of USCIB’s leadership and members attended the meeting, including USCIB Vice Chair Rick Johnston (Citi) and Vice-Chair of USCIB’s China Committee Tad Ferris.

OECD and Business at OECD officials included OECD’s Deputy Secretary General Doug Frantz, Secretary General of Business at OECD (BIAC) Bernhard Welschke, Senior Policy Director at BIAC Nicole Primmer and Acting Head of the OECD Washington Center Susan Fridy.

This was a timely opportunity for USCIB, OECD and BIAC to have a roundtable discussion on a wide range of issues that are being addressed in the OECD such as tax, cross-border data flows, health, investment, digital trade, the Sustainable Development Goals and the G20. These issues were framed in a larger discussion of the role of business in the current political and economic climate in the U.S., about which Frantz said, “we need help from business to convey that free trade, open borders and anti-corruption guidelines require multilateral engagement. The U.S. and the U.S. business community benefit enormously from the work done at the OECD.”

Doug Franz, Deputy Secretary General OECD addresses USCIB members
Doug Frantz, Deputy Secretary General OECD addresses USCIB members

Frantz also emphasized the role of digital innovation in providing future growth, prosperity and equal distribution of wealth to curtail the negative effects of the digital revolution, noting “taking digital innovation and its breakthroughs and making sure that the breakthroughs are more evenly distributed through training, skills-building and education that is based on deductive reasoning, will cushion the fall for people who are at risk of losing their jobs to the digital revolution.”

David Redl to Speak at Conference on Fostering Digital Transformation: The OECD’s Role

David Redl, chief counsel for communications and technology for the U.S. House of Representatives Committee on Energy and Commerce, will give the keynote address at USCIB’s timely conference, Fostering Digital Transformation: The OECD’s Role,”  on March 8 in Washington, D.C. The conference is organized by The USCIB Foundation, the educational arm of the United States Council for International Business (USCIB), in partnership with Business at the OECD (BIAC) and the Organization for Economic Cooperation and Development OECD). The conference will explore ways that policy makers and the business community work together to ensure that new technologies and digital applications can lead to a more prosperous, productive, inclusive and socially beneficial world, while considering what lessons can be learned from recent discussions and related work within the 35-nation Organization for Economic Cooperation and Development (OECD).

“This will be an important forum for dialogue among technologists and policy makers to help us navigate toward a more robust, secure, resilient and inclusive digital economy,” said USCIB President and CEO Peter M. Robinson. “Following last year’s pivotal OECD Ministerial in Cancun, which recognized the digital economy as a powerful catalyst for innovation, growth and overall prosperity, the focus will be on moving forward the OECD’s ambitious agenda. We will explore how broad-ranging OECD policy frameworks can help to address new challenges posed by changing global policy dynamics.”

Topics for discussion include:

  • The Digital Economy and Information Society of the Future
  • Realizing the Global Commercial Benefits and Corporate Societal Responsibilities of Digitalization
  • Enhancing Trust in the Digitally Connected Ecosystem

Other confirmed speakers for the event include:

  • Douglas Frantz, deputy secretary general of the OECD
  • Andrew Wyckoff, director of the OECD Directorate for Science, Technology and Innovation
  • Anne Carblanc, head of the OECD Digital Economy Policy Division
  • Eric Loeb, senior vice president of international external and regulatory affairs, AT&T
  • Joseph Alhadeff, vice president of global public policy, Oracle Corp.

The conference, which is co-organized by the OECD and Business at OECD (BIAC), will take place at the Microsoft Innovation & Policy Center (901 K Street, NW, Washington, D.C.). Registration and additional information are available on the conference website. Event sponsors and partners include AT&T, Google, Microsoft, Verizon and the Internet Association. Inside Cybersecurity is a media partner.

BIAC Holds Annual Consultation With OECD Ambassadors

OECD
BIAC Secretary General Bernhard Welschke and BIAC Chair Phil O’Reilly address Secretary General Angel Gurria and OECD Ambassadors

BIAC held its annual consultation with OECD Ambassadors last month, providing an opportunity for the business community to identify priorities for the OECD agenda that affect both the private sector and governments. Senior business leaders discussed the OECD Secretary General and Ambassadors timely challenges and ways forward in global markets. This annual consultation is part of BIAC’s active advocacy with top OECD officials and governments throughout the year.

The consultation focused on outlining appropriate macro-economic and regulatory policies to strengthen growth, defending and promoting trade and investment for competitiveness, addressing tax uncertainty to boost investment, seizing the benefits of innovation and the digital economy, strengthening human capital to build dynamic inclusive economies, and including business in development and a clean environment.

A full report from the consultations can be found here.

New Report Warns of High Counterfeiting and Piracy Costs

A new report from the International Chamber of Commerce’s BASCAP (Business Action to Stop Counterfeiting and Piracy) initiative and the International Trademark Association (INTA) details the spiraling cost of global intellectual property rights abuses.

The report, titled The Economic Impacts of Counterfeiting and Piracy, estimates that the global economic value of counterfeiting and piracy can reach $2.3 trillion by 2022. Additional costs on social and economic impacts of displaced economic activity, investment and public fiscal losses and criminal enforcement is estimated at $1.9 trillion by 2022.

This report builds on a 2016 report published by the Organization for Economic Cooperation and Development and the European Union Intellectual Property Office, which estimated the value of international trade in counterfeit and pirated products at $461 billion in 2013, approximately 2.5% of all international trade.

“The Frontier report picks up where the OECD/EUIPO left off,” said BASCAP Director Jeffrey Hardy. “Here we have expanded the scope of the work to examine categories of impacts identified and discussed – but not quantified – by the OECD/EUIPO report. Our objective is to capture the full spectrum of economic harm associated with counterfeiting and piracy.”

The report was launched on February 6 in Hong Kong during INTA’s 2017 Anti-counterfeiting Conference.

Read more on the ICC website.

Washington Conference to Explore OECD’s Role in Facilitating the Digital Transformation

ict_conference_boxNew York, N.Y., January 18, 2017 – How can policy makers and the business community work together to ensure that new technologies and digital applications can lead to a more prosperous, productive, inclusive and socially beneficial world? And what lessons can be learned from recent discussions and related work within the 35-nation Organization for Economic Cooperation and Development (OECD)?

This is the focus of a timely conference, “Fostering Digital Transformation: The OECD’s Role,” organized by The USCIB Foundation, the educational arm of the United States Council for International Business (USCIB), March 8 in Washington, D.C.

“This will be an important forum for dialogue among technologists and policy makers to help us navigate toward a more robust, secure and inclusive digital economy,” said USCIB President and CEO Peter M. Robinson. “Following last year’s pivotal OECD Ministerial in Cancun, which recognized the digital economy as a powerful catalyst for innovation, growth and overall prosperity, the focus will be on moving forward the OECD’s ambitious agenda. We will explore how broad-ranging OECD policy frameworks can help to address new challenges posed by changing global policy dynamics.”

Topics for discussion include:

  • The Digital Economy and Information Society of the Future
  • Realizing the Global Commercial Benefits and Corporate Societal Responsibilities of Digitalization
  • Enhancing Trust in the Digitally Connected Ecosystem

Confirmed speakers for the event include:

  • Douglas Frantz, deputy secretary general of the OECD
  • Andrew Wyckoff, director of the OECD Directorate for Science, Technology and Innovation
  • Anne Carblanc, head of the OECD Digital Economy Policy Division
  • Eric Loeb, senior vice president of international external and regulatory affairs, AT&T
  • Joseph Alhadeff, vice president of global public policy, Oracle Corp.

The conference, which is co-organized by the OECD and Business at OECD (BIAC), will take place at the Microsoft Innovation & Policy Center (901 K Street, NW, Washington, D.C.). More information is available on the conference website. Event sponsors and partners include AT&T, Google, Microsoft and Inside Cybersecurity.

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 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, USCIB
+1 212.703.5043, click here to e-mail