News Stories Archives

Modest Progress at G20 Osaka Summit Welcomed

Published on July 1, 2019

USCIB responded with cautious optimism to the modest progress made at this year’s Group of 20 Summit in Osaka, Japan, and at the meeting between President Trump and Chinese President Xi Jinping, where the two leaders agreed to continue working toward a resolution of their bilateral trade disputes.

“We are relieved that the U.S. and China have stepped back from a broader escalation of their tit-for-tat tariffs,” said USCIB Senior Vice President Rob Mulligan. “We encourage both parties to move swiftly toward resolution of their disputes. The existing tariffs have already had a negative impact on American exports, and could threaten U.S. jobs as well as our broader competitiveness.”

Mulligan also welcomed the G20 leaders’ endorsement of recent OECD blueprints for cooperation on global tax measures as well as on a “human-centric” approach to the deployment of artificial intelligence – both areas where USCIB members have provided active input to international policy deliberations.

In their communiqué, the G20 leaders warned of growing risks to the global economy but stopped short of denouncing protectionism, mainly due to push-back from the United States. “We strive to realize a free, fair, nondiscriminatory, transparent, predictable and stable trade and investment environment, and to keep our markets open,” they stated.

While leaders made only passing mention of efforts to modernize the World Trade Organization, several voiced renewed support for the recently launched plurilateral negotiations on e-commerce taking place under the WTO’s aegis.

President Trump and leaders from China, Japan and the European Union joined the WTO Director General Roberto Azevêdo in welcoming the Osaka Declaration on the Digital Economy, which commits the signatories to promote efforts on international rule-making in this area and urges further progress on e-commerce at the WTO.

“A fragmentation of the digital economy would hurt us all,” said Azevêdo. “It would mean higher costs and higher barriers to entry, affecting developing countries and smaller businesses the most. The 20th century showed that a fractured global trade order was not sustainable – that’s why we created the WTO. The same is true today. You may well be working on a constitution for the economy of the 21st century.

Business Calls for More Time on Proposed Tech Export Controls 

Published on July 1, 2019

USCIB joined more than 25 leading business associations to urge U.S. Secretary of Commerce Wilbur Ross to ensure that the public has adequate time to review and provide feedback on a proposed rulemaking regarding the review of controls for foundational technologies set forth in the Export Control Reform Act of 2018 (ECRA).

The request comes in anticipation of the next round of rulemaking as part of the modernization of the export control regime through ECRA, which updated the process to address essential national security objectives. For the Advance Notice of Proposed Rulemaking (ANPRM) regarding emerging technologies in November, the administration initially allotted 30 days for review and comments, prompting a multi-industry response asking for an extension, which was granted.

“The preparation of industry input in response to the emerging technologies ANPRM provided a window into the complex dimensions of these proposed policy changes,” the associations wrote in a letter sent to Secretary Ross. “As we look to the next phase of this project, we request that BIS set the comment period for the foundational technologies ANPRM to 90 days to ensure our associations and our member companies have adequate time to review the notice and provide comprehensive feedback to address the policy concerns and technological complexities at issue.”

The Department of Commerce has been an engaged partner with industry since the process began in late 2018, and industry welcomes the opportunity to support the U.S. government in working towards these important national security objectives.

World Chambers Congress Tackles Key Development Issues

Published on June 25, 2019

The International Chamber of Commerce (ICC) concluded its 11th World Chambers Congress on June 14, held in Rio de Janeiro, Brazil. This year’s Congress included three days of engagement among over 1,000 delegates on key issues affecting chambers and their respective business communities.

The Congress focused on four main initiatives, including a sustainable future for all, skills for the future, financial inclusion and the World Chambers Competition. “This year’s event was a huge step forward in engaging the chambers network more actively and cohesively in ICC’s global work – with great buy-in for our five campaigns and a growing interest in how ICC can help chambers redefine their value proposition in a market that is undergoing significant disruption,” reflected ICC Secretary General John Denton.

Denton also highlighted a new initiative as part of ICC’s campaign to “Make Climate Action Everyone’s Business.” The “Chambers Climate Coalition” provides a platform for chambers to visibly demonstrate their commitment to take action aligned with the Paris Agreement and the latest climate science. It also provides an opportunity to showcase the important role Chambers can play in driving the transition to a cleaner and more resilient planet. More than 450 chambers from six continents have already signed-up for the Coalition – with signatories from countries including China, India, South Africa, Nigeria and the United States.

“We are already rallying other chambers to sign on and will be providing toolkits to signatories to ensure effective local climate engagement in the coming months,” said Denton. The Coalition has received strong support from the United Nations Secretary General’s team and the UN Framework Convention on Climate Change.

USCIB Senior Vice President and CFO Declan Daly attended the meetings on behalf of USCIB.

The next Congress will be held in Dubai in 2021.

USCIB Responds to US Tariff Escalation With China

Published on June 18, 2019

In response to the recent escalation of tit-for-tat tariffs between the United States and China, USCIB submitted comments on June 17 to the office of the United States Trade Representative (USTR) on the proposed modification to Section 301 regarding China’s policies and practices related to technology transfer, intellectual property and innovation. USCIB members are concerned that proposed tariffs on essentially all Chinese imports will stifle the U.S. economy and will not achieve the Administration’s goal of changing China’s behavior.

Following this submission, USCIB’s China lead Eva Hampl is getting ready to testify at USTR on Friday, June 21. “While China’s forced technology transfer requirements, state interventions, and other unfair trade practices harm many U.S. companies, workers, consumers, and competitiveness, these tariffs can also similarly endanger the U.S. economy,” warns Hampl. “Specifically, this proposed list now includes categories of products that only impact U.S. companies, and not their global competitors. Ceding market share to competitors is not weakening the Chinese economy, it is merely weakening the U.S. market.”

USCIB also joined with Tariffs Hurt the Heartland, alongside 661 other companies and association, to send a letter to President Trump on June 13 urging the administration to negotiate a strong deal with China that addresses longstanding structural issues, improves U.S. global competitiveness and eliminates tariffs. “This goal can be achieved without taxing Americans,” the letter emphatically stated.

The letter also stated that “broadly applied tariffs are not an effective tool to change China’s unfair trade practices” and would “result in the loss of more than 2 million U.S. jobs, add more than $2,000 in costs for the average American family of four and reduce the vale of U.S. GDP by 1.0 percent.”

Business Pushes Back Against Mexico Tariff Plan

Published on June 10, 2019

Following President Trump‘s announcement of his administration’s plan to impose tariffs on imports from Mexico, to compel the country to act more forcefully against unauthorized migration, USCIB joined a broad array of U.S. business groups in criticizing the plan.

The groups wrote in a June 7 joint statement that the plan – involving five-percent tariffs that would ratchet up to 25 percent over a period of months – would impose undue hardship on American companies and consumers, and would jeopardize passage of the U.S. Mexico Canada Agreement, the successor to NAFTA.

“We have committed to work with the administration and both sides of the aisle in Congress to support congressional passage of USMCA,” the business groups wrote. “We are supportive of the constructive discussions members of the administration have had with members of Congress. But imposing unilateral tariffs on Mexico jeopardizes a successful bipartisan vote on USMCA and approval of the agreement.

President Trump withdrew the threat of tariffs following a pledge by Mexico to increase its enforcement efforts.

USCIB Statement on WTO e-Commerce Negotiations

Published on June 6, 2019

USCIB has issued Recommendations on the WTO e-Commerce negotiations, reflecting member priorities and goals for the negotiations, which had their first round in May. The recommendations are being shared with relevant government officials and stakeholders.

At the December 2017 WTO ministerial in Buenos Aires, 71 countries agreed to begin discussing new global rules to facilitate the expansion of the digital economy. Thanks to intensive work by those countries, last January 76 countries (notably including the U.S., EU, and China) announced the launch of formal negotiations.

In addition to this paper, USCIB is actively engaging in the negotiations in Geneva via various efforts, including the Digital Trade Network and the International Chamber of Commerce.

“The vast majority of the world’s economy is at the table,” wrote Nick Ashton-Hart, the Digital Trade Network’s Geneva representative, in the most recent issue of USCIB’s magazine, International Business. “Since it is estimated that the digital economy underpins approximately one-third of global GDP this is a negotiation that will impact industry everywhere.”

ICC Celebrates 100 Years, Sets Out Vision for Next Century

Published on May 29, 2019
L-R: Peter Robinson (USCIB), Norine Kennedy (USCIB), Thomas Pletscher (ICC Switzerland)

The International Chamber of Commerce, the oldest and largest component of USCIB’s global business network, celebrated its centennial at a gala event in Paris on May 28. USCIB President and CEO Peter Robinson and Vice President Norine Kennedy were among the hundreds of attendees.

The world business organization was founded in 1919, out of the ashes of World War One, under a commitment by international business to build bridges through cross-border trade and investment and to serve as “merchants of peace.”

On behalf of its 45 million companies worldwide, ICC issued a declaration setting out a vision to shape the future of global business for the next century.

Mirroring the call by ICC’s founders, the declaration sets out guiding principles for ICC as a purpose-driven international organization, working with renewed purpose to “make business work for everyone, every day, everywhere.”

Listing a number of potential upheavals facing the global community – including climate change, digital transformations and rising inequality – the ICC declaration states: “In the years ahead, these disruptions will become increasingly pronounced in the absence of concerted action by global leaders to mitigate negative outcomes and drive collective solutions.”

Click here to read more and get the full declaration.

Ahead of ICC’s Centennial Summit, ICC launched a new work program to fulfill commitments set out in the Centenary Declaration. Leveraging ICC’s global membership in over 100 countries, ICC will execute the work program through five newly created and versatile knowledge hubs deploying five pivotal campaigns to enable business worldwide to secure peace, prosperity and opportunity for all.

“Faced with pressing global challenges in the 21st century, ICC and the global business community can – and must – do more as a force for good in the world,” said ICC Secretary General John W.H. Denton. “We will respond to this imperative with brave and bold action to meet the ambition of our renewed purpose.”

At OECD Ministerial, Business Engages on Digital Transformation

Published on May 29, 2019
L-R: Peter Robinson (USCIB), OECD Secretary General Angel Gurria, Andrew Wyckoff (OECD), Charles Johnston (Citi)

On May 22-23, a strong delegation of global business leaders participated in the 2019 OECD Ministerial Council Meeting, stressing the need for integrated policies that will enable business to fully deliver on the potential from the digital transformation for economies and societies.

This pivotal exchange platform allowed global members and corporate leaders affiliated with Business at OECD (known by the acronym BIAC), part of USCIB’s global network, to convey what business needs from international collaboration to promote both economic growth and inclusion. The high-level dialogue featured multiple interactions with ministers of economy, trade, foreign affairs, and finance from 36 OECD countries and key non-member economies. Senior business leaders – including Peter Robinson, USCIB’s president and CEO, Alexandre Ricard, CEO of Pernod Ricard, BIAC Vice Chair Charles Johnston, managing director of global government affairs with Citi and a USCIB board member, and Saori Dubourg, board member from BASF – formally addressed ministers during the program.

The OECD Ministerial outcomes and adopted instruments reflected critical policy recommendations from the 2019 Business at OECD Statement to Ministers, notably the need to appropriately involve stakeholders as future policy recommendations are developed, guidance that will enable data governance based on trust, and continued support for OECD evidence and facts on tax, competition and trade, including on tracking market distorting support measures and barriers. BIAC commended the adoption of the OECD Artificial Intelligence principles and the creation of an OECD Observatory on AI – business involvement in this area will be critical to achieve innovation in a number of fields including health, environment, and anti-corruption.

While in Paris, USCIB’s Robinson BIAC Secretary General Russel Mills and Senior Director Nicole Primmer attended a reception for ministers at the U.S. Mission to the OECD hosted by U.S. Charge d’Affaires Andrew Havilland. Robinson added that the week’s activities “gave me an opportunity to connect with the OECD leadership, including Jeffrey Schlagenhauf, the newly appointed OECD deputy secretary general from the United States.”

BIAC members also convened for the 5th occasion the current G20 and B20 (Business 20) presidencies to share business recommendations to G20 leaders ahead of the Osaka Summit. The event featured the participation of the Japanese Foreign Minister Taro Kono, Shinya Katanozaka, president and CEO of ANA Holdings, and the OECD’s leadership. Business speakers from BIAC’s French and German national members MEDEF and BDI, its Argentinian observer UIA, and from Accenture also debated views with five G20 sherpas and senior government officials. In this meeting, Business at OECD Chair Phil O’Reilly affirmed the importance of ensuring continuity and frank exchanges across presidencies to achieve tangible outcomes in G20 declarations and implementation actions.

Earlier, the Business at OECD Annual General Assembly brought together BIAC’s executive board, leadership from national organizations from 30 OECD and non-OECD countries, and associate expert groups to discuss our strategic priorities for global governance and national challenges. The meeting also benefited from a conversation with leadership from 12 major BIAC policy groups to present the OECD agenda across critical issues, our business perspectives, and the role the OECD can play in these fields.

Ulrik Vestergaard Knudsen, deputy secretary general of the OECD, gave a keynote address to participants on major OECD initiatives affecting businesses, and Alvaro Pereira, director of the Country Studies Branch of the OECD Economics Department, responded to insights from BIAC’s 2019 Economic Survey, and also shared main themes from the 2019 OECD Economic Outlook.

ICC Warns Against Misuse of Incoterms 2020 Rules

Published on May 22, 2019

The International Chamber of Commerce (ICC) is preparing for the publication of Incoterms® 2020, an update of the renowned regulations that define the responsibilities of buyers and sellers operating in the international trade system.

According to ICC, with the launch of Incoterms set for later this year, websites are already claiming to have information or training sessions about the update of its commercial trade terms. As the world business organization, ICC is the originator and sole official publisher of the Incoterms® rules. Any misuse of the terms can lead to costly mistakes. So how can users spot fake Incoterms® rules information? ICC provides three tips to ensure the right details, from the most credible source:

  1. Does it mention ICC? One of the easiest ways to spot a misleading Incoterms® 2020 rules website is to check and see if ICC mentioned at all. As the originator and official publisher of the Incoterms® rules, it is important for business to consult resources directly sourced by ICC.
  2. Words matter: In most cases, websites will make bold predictions about the Incoterms®2020 rules. Speculative sentences, such as “rumors point to changes,” or “it would be very important to change,” are commonplace on these deceptive websites and do not reflect the official position of ICC.
  3. Are they offering training sessions now? ICC urges those using or studying to consult only ICC-supported websites for information pertaining to the Incoterms® rules to ensure application of the right procedure. By registering for non-ICC affiliated training sessions, businesses and other users run the risk of spending money to receive false information.

For more detailed information, visit ICC.

USCIB has established a central information page on its website for all the latest developments surrounding the introduction of Incoterms® 2020. Go to uscib.org/about-incoterms-2020 for more information.

Governments Actively Engaged at WTO E-Commerce Negotiations

Published on May 20, 2019

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.