USCIB Joins 107 Associations on NAFTA Letter on Investment

USCIB joined 107 other associations in a letter sent on August 8 to United States Trade Representative Robert E. Lighthizer and four other cabinet-level officials in the administration highlighting the importance of a strong investment chapter in the North America Free Trade Agreement (NAFTA).  The letter emphasized the need for strong enforcement provisions via an investor-state dispute settlement (ISDS) system with independent expert arbiters.  The letter also offered six specific suggested changes to strengthen the current investment chapter in the NAFTA modernization negotiation set to begin August 16 in Washington.

“These provisions are highly valuable and have already helped many U.S. businesses that have faced the seizure, theft and mistreatment of investments in both Canada and Mexico. ISDS in the NAFTA has been highly beneficial to the United States,” the letter notes.

Investment, including Foreign Direct Investment, is key to driving economic growth, competitiveness, exports and jobs. Strong investment agreements, including ISDS arbitration provisions are key to effective enforcement.  The investment chapter will likely be a focus in the NAFTA update negotiations.

“We were delighted to have several USCIB member sectoral associations join us in signing the letter along with a broad coalition of national and state business groups,” said Shaun Donnelly, USCIB’s vice president for trade and financial services.

USCIB Gears Up for APEC Meetings in Vietnam

USCIB members are continuing to make the Asia-Pacific Economic Cooperation (APEC) a priority forum in which to engage, as it is key to accelerating regional economic integration as well as promoting balanced, inclusive, sustainable, innovative and secure growth.

To aid private sector engagement, USCIB works with the U.S. APEC business coalition to meet with APEC officials and participate in APEC meetings throughout the year, culminating in the APEC CEO Summit, a meeting of CEOs and leaders from the APEC economies.

To direct and facilitate the work with our members and APEC officials, USCIB has compiled its annual priority issues and recommendations paper, which can be found here. As can be seen in our priorities, USCIB is actively engaged in a number of the APEC issue areas and working groups related to ICT, Chemicals and, Customs and Trade Facilitation.

Two of USCIB’s policy team will be attending the third APEC Senior Officials Meeting and related meetings (SOM 3) in Ho Chi Minh City, Vietnam, held August 15-30.

Megan Giblin, USCIB’s director for Customs and Trade Facilitation will be participating in the APEC Business – Customs Dialogue (ABCD), the APEC Alliance for Supply Chain Connectivity (A2C2) meeting,  moderating the “Streamlining Processes: Addressing Challenges from the Private Sector” panel and speaking on the “Single Window to Facilitate Trade and Economic Competitiveness” panel during the APEC Workshop on Single Windows (e.g., in U.S. ACE), moderating the WTO Trade Facilitation panel “Focus on Transparency: The WTO TFA” during the 2017 APEC Conference on Good Regulatory Practice (GRP), and working with U.S. Customs and Border Protection (U.S. CBP) to present a case study tied to TFA implication during the GRP event. USCIB worked closely with both U.S. CBP and the Office of the U.S. Trade Representative to secure industry speakers and participation for the GRP and Single Window events.

During the closed meeting of the APEC Sub-Committee on Customs Procedures, Giblin will provide an update on the Customs – Chemical Dialogue project. The deliverable for this meeting is delivery of an analysis of country survey results, including common practices at the customs border regarding treatment of industrial chemicals.

Giblin will continue to establish and foster relationships with customs officials from APEC economies as well as members of industry, identifying linkages to the work underway within the USCIB Customs and Trade Facilitation Committee, including, but not limited to, e-commerce, de minimis, and single-window efforts.

The decision was taken earlier this year at SOM 1 to reduce duplication and streamline working groups, to integrate the SCCP Virtual Working Group with the A2C2 given the level of issue overlap. Moving forward the A2C2 will bring together members of the private sector as well as among other departments or agencies, customs officials, from the APEC member economies. Giblin is a member of the A2C2, which is focused on capacity-building efforts and the WTO Trade Facilitation Agreement and its implementation.

“Given the expanded scope of the A2C2 as well as the fact that many of our members are part of the A2C2, I will continue to consider ways to increase industry visibility, engagement and potentially reduce duplicative industry resource or input requests,” noted Giblin.

Giblin will also attend the APEC Chemical Dialogue (CD) meetings on behalf of Mike Michener, USCIB’s vice president of Product Policy and Innovation, to support USCIB members attending the CD-related meetings. The CD serves as a forum for regulatory officials and industry representatives to find solutions to challenges facing the chemical industry in the Asia-Pacific region. It reflects APEC members’ recognition of the importance of engaging with the private sector and building public-private sector dialogue and cooperation for mutual benefit. USCIB members have found this Forum a valuable place to promote their regional business priorities.

Barbara Wanner, USCIB vice president for ICT policy, also will attend the SOM 3 meetings. In particular, Wanner will participate in a special “APEC Public-Private Dialogue on Facilitating MSMEs to Adopt Cross Border E-Commerce,” jointly organized by the Electronic Commerce Steering Group (ECSG) and the Committee on Trade and Investment (CTI), August 18-19. In addition, Wanner will represent member interests at meetings of the ECSG and Data Privacy Subgroup (DPS), August 20-23.  Finally, Wanner will serve as a business observer at the APEC Advertising Standards Conference, August 24.

The Public-Private Dialogue is aimed encouraging greater MSME participation in cross-border e-commerce in the APEC region and beyond. The two-day workshop will focus on sharing information with MSMEs about trade promoting elements of the e-commerce chapters of Regional Trade Agreements (RTAs), such as the Trans-Pacific Partnership (TPP). It also will educate MSMEs on the trade facilitating benefits of certification under APEC’s Cross-Border Privacy Rules (CBPR) system. USCIB has been a long-time supporter of the CBPR, viewing it as a foundation to promote high-level privacy standards while ensuring seamless flows of business information through the APEC region. USCIB members Apple, Cisco, Hewlett Packard Enterprise Company, HP, IBM, and Merck are CBPR-certified.

The DPS meetings likely will feature discussion about the recent approval of South Korea as a CBPR-certified economy – making it the fifth APEC economy in the CBPR system, joining Canada, Japan, Mexico, and the United States. The DPS also will include a special session with representatives of the European Commission and Article 29 Working Party aimed at pursuing greater interoperability between the APEC CBPR and the EU’s General Data Protection Regulation (GDPR) before the latter goes into effect in May 2018. An ECSG draft Strategic Plan, which was tabled by the U.S. Government earlier this year, likely will receive continued focus in the ECSG meetings.

SOM 3 will also include a Workshop on Advertising Self-Regulation. Through participation by USCIB members and ICC representatives at the workshop, USCIB is lending support to the efforts to improve advertising standards throughout the APEC region, and providing input to APEC economies on the use of regulation and self-regulation, including the ICC Marketing Code. The Advertising Standards Conference will devote a session to regulating and monitoring digital advertising, which is expected to include speakers from Google and ICC.

If you would like any further information on the above meetings or issues, please feel free to reach out to our team.

Advertising: Jonathan Huneke, jhuneke@uscib.org

Customs and Trade Facilitation: Megan Giblin, mgiblin@uscib.org

Chemicals: Michael Michener, mmichener@uscib.org

ICT and Data Privacy: Barbara Wanner, bwanner@uscib.org

APEC priorities: Elizabeth Kim, ekim@uscib.org

USCIB’s Global Impact: 2017 Update on Advocacy

Welcome to USCIB’s Global Impact – an update on USCIB’s advocacy activities around the world in support of your interests. USCIB was at the table, along with many of our members, at key international deliberations– all for the express purpose of ensuring that the voice of U.S. business is heard where policies and regulations affecting your bottom line are determined.

Download Global Impact

At a Glance

USCIB President and CEO Out Front for American Business: USCIB President & CEO, Peter Robinson’s leadership at the B20 and OECD Week.

Keeping Markets Open for U.S. Business: With uncertainty regarding trade agreements due to political developments at home and abroad, one thing remains certain: international markets need to be open for U.S. companies. USCIB was on the ground meeting with officials from the OECD and WTO pressing for strong investment agreements and the removal of trade barriers, all in support of U.S. jobs.

Advocating for a Continued Open and Dynamic Internet: Cross-border trade in digital goods and services has grown 45-fold over the past decade. USCIB was at ICANN and the OECD advocating for policies that do not hamper innovation and that allow the Internet and broader digital economy to realize the tremendous potential to create economic opportunity and address social challenges.

Safeguarding the Role of Business in Environment and Climate Change Policy: An increasing number of multilateral organizations are considering proposals to keep business out of policy deliberations where decisions are being made that impact U.S. business bottom lines. This is particularly prevalent in the UN environmental space. USCIB was on the front lines at UNEP and the UNFCCC pushing back against these efforts as private sector involvement is critical to the success in solving the very problems that these UN agencies seek to address.

Making International Taxation Rules Predictable for Business: New global tax rules have been developed under the OECD’s Base Erosion and Profit Shifting (BEPS) Action Plan. Now, the focus is on BEPS implementation and opportunities to improve tax certainty remain. USCIB met with OECD and other government officials urging them to consider the need for a predictable fiscal environment that will protect and encourage cross-border trade and investment in the context of implementing these BEPS recommendations.

Working to Reduce Trade Barriers: Unnecessary and burdensome barriers to trade can cost companies and national economies billions of dollars. The WTO Trade Facilitation Agreement (TFA), which entered into force earlier this year, promises to boost global trade flows by over $1 trillion and generate opportunities for easier, less costly cross-border trade. USCIB crossed the globe pushing for global modernization of customs laws, regulations, processes and day-to-day practices are necessary for efficient supply chains.

Leadership at the ILO and more…
Review USCIB’s engagement at the ILO’s International Labor Conference and the ICC Marketing & Advertising Commission.

Upcoming USCIB Representation around the World to be Covered in the Next Global Impact
APEC SOM 3 Meetings – Ho Chi Minh City, Vietnam; August, 2017

WCO Harmonized System Committee (HSC) Meeting – Brussels, Belgium; November, 2017

APEC CEO Summit – Da Nang, Vietnam; November, 2017

ICC Customs & Trade Facilitation Commission Meeting – Paris, France; November, 2017

UNFCCC COP23 – Bonn, German; November, 2017

WTO Ministerial – Buenos Aires, Argentina; December, 2017

UNEA3 – Nairobi, Kenya; December, 2017

USCIB Urges Senate to Confirm Trump Administration Nominees

USCIB is among approximately 90 American business and industry associations to have signed a letter to Senate Majority Leader Mitch McConnell and Senate Minority Leader Charles Schumer, urging the Senate to take expeditious steps to ensure the timely confirmation of qualified pending nominees to administration positions.

“The slow pace of confirmations is depriving agencies across the government of critical leadership and in the case of independent agencies, the quorum necessary to conduct critical business,” reads the letter.

Additionally, it notes: “The breakdown of the confirmation process results in a breakdown in the efficient and effective functioning of government and ultimately to a drag on the economy. Workers are sidelined as projects await permits from agencies that lack the quorum necessary to issue the permit. Businesses are left waiting for important administrative decisions that simply cannot be made in the absence of Senate-confirmed officials.”

To date, among President Donald Trump’s 283 executive and judicial nominations, only 67 have been confirmed. Of those 67, only 13 were confirmed by voice vote or unanimous consent, while 37 (55%) were confirmed only after going through the cloture process. By way of comparison, at approximately the same point in President Obama’s first term, the Senate had confirmed 206 nominees, 182 by voice vote or unanimous consent.

The full letter, along with the list of signatories, can be found here.

Donnelly Offers Ambassador’s Perspective in Commerce Training Session

Shaun Donnelly

USCIB Vice President for Trade and Financial Services, and retired U.S. Ambassador, Shaun Donnelly offered an ambassador’s perspective on effective embassy commercial work on behalf of U.S. companies overseas to a group of new Foreign Commercial Service (FCS) officers at the U.S. Department of Commerce last week.

During the August 1 session at the Commerce Department’s Commercial Diplomacy Institute, Donnelly joined with former FCS Director General and retired Ambassador Chuck Ford to share perspectives, experiences, best practices and even a few war stories, on what makes U.S. embassies effective in promoting U.S. commercial interests overseas.

One key message Donnelly and Ford both emphasized is the importance of close cooperation around the embassy, especially between FSC and State economic sections plus active involvement from the Ambassador and the rest of the Embassy team.

The new FCS officers are headed to assignments as commercial attaches in U.S. embassies and consulates in China, Mexico, Nigeria, and (perhaps, given recent developments) Russia, as well as in U.S. Export Assistance Centers or “USEACs” around the U.S.

“It’s encouraging that the Commerce Department, despite budget uncertainties, is pressing ahead to recruit and train the much-needed next generation of FSC staff,” noted Donnelly.

Donnelly and Ford are used to collaborating; they worked together often in their long U.S. government careers and recently co-authored two “Support for American Jobs” reports on commercial diplomacy for the American Academy of Diplomacy.

USCIB Op-ed: NAFTA 2.0 Needs to Protect Investment

USCIB’s Vice President for Investment and Financial Services Shaun Donnelly along with its Director for Investment, Trade and Financial Services Eva Hampl recently contributed an op-ed in The Hill titled, “NAFTA 2.0 needs to enshrine investor protections.”

As the Trump administration gears up to update the North American Free Trade Agreement (NAFTA) later this month, Hampl and Donnelly evaluate the Trump administration’s negotiating objectives, which were released last month.

“Overall, the administration’s “NAFTA 2.0” wish-list is solid. Some commentators have noted the irony of including so many goals that were essentially attained in the Trans-Pacific Partnership, an agreement President Trump withdrew from on his third day in office,” they write. However, one of the more crucial objectives, mainly investor protection under the agreement’s Chapter 11 are not included.

“These provisions, which allow U.S. investors both small and large to seek compensation for unfair, discriminatory or inequitable treatment at the hands of foreign governments, are based on bedrock principles embedded in our own Constitution prohibiting abusive government treatment and the taking of private property without just compensation. Without this provision, domestic courts become the only legal recourse for a wronged investor. While Mexico has made great strides in many respects, its court system is still far from impartial. Indeed, miscarriages of justice can happen in any country, including advanced democracies like the United States and Canada,” they noted.

Please visit The Hill for the whole op-ed.

ATA Carnets Paper Processing Moves Into the 21st Century

The World Customs Organization (WCO) has endorsed the launching of a pilot in 2018 of a digital ATA Carnet process! The eCarnet working group of the International Chamber of Commerce/World Chambers Federation (ICC/WCF) provided an update on the electronic Carnet (eCarnet) developments to the WCO’s eATA Carnet Working Group.

The group met at WCO headquarters in Brussels, Belgium on June 30.  The ICC/WCF advised it is moving, on schedule, into phase three of creating a digitized ATA Carnet system.  There will be a pilot project launched in 2018 to test the system and processes for an eCarnet.

ICC/WCF showcased its recently developed Mercury system, a centralized database system of key ATA Carnet data.  A digitized ATA Carnet will facilitate transactions, increase data security, reduce exceptions and improve administration.  Customs, Carnet holders, service providers and national guaranteeing associations, such as USCIB, will be more productive with a modernized export/import process for items moving under an ATA Carnet. More than 15 nations and the European Union expressed their support and welcomed this initiative.  Some countries displayed an eagerness to join the pilot project.

USCIB’s Andy Shiles attends the WCO meetings in Brussels, Belgium

Andrew Shiles, USCIB’s new senior vice president of ATA Carnets and Trade Services, attended the WCO meeting and emphasized the large scale of business opportunities that ATA Carnets can provide for both small and large American enterprises. “It is exciting to be involved in such a dynamic time in the ATA Carnet industry,” said Shiles, adding that “We are truly making history by moving the ATA Carnet processes into the 21st century.  This means that billions of dollars worth of goods will move through efficient eATA Carnet processes resulting in jobs being created.”

The ATA Carnets are used by thousands of exporters around the world to get goods through customs quickly and easily. While the ATA Carnet is currently in force in 77 countries, Shiles is striving to see an expansion of even more countries.

ATA Carnets are internationally recognized customs documents that permit temporary duty-free, tax-free entry of qualified goods for up to one year. They are used widely to facilitate entry of goods for trade shows, product samples and professional equipment. “Astute business people utilize the unique tool of an ATA Carnet to promote their goods internationally where they can generate incremental sales, reduce handling costs and protect a company’s cash flow when it comes to international transportation,” noted Shiles.  “In fact, a company dealing with international sales may be missing out on a great opportunity if they if they are not using carnets,” he warned.

USCIB manages and guarantees the ATA Carnet system in the United States, with responsibility for issuing ATA Carnets falling to two outside service providers, Roanoke Trade and the Corporation for International Business. ATA Carnets are accepted in 77 countries and territories, while the global ATA systems are overseen by the WCO and the ICC. USCIB serves as ICC’s U.S. national guaranteeing association. For more information on ATA Carnets and the benefits they can provide for your business, please visit USCIB’s website.

Donnelly Co-authors Report on “Commercial Diplomacy”

Shaun Donnelly

USCIB Vice President Shaun Donnelly has recently co-authored a new report on commercial diplomacy under the auspices of the American Academy of Diplomacy (AAD), a prestigious group of leading former senior U.S. government diplomats.  Donnelly, like former USCIB President and current USCIB Board Vice Chair Tom Niles, was elected to AAD membership after retiring from a long career as a Foreign Service Officer at the U.S. Department of State.

Over the past two years, Donnelly has co-led, along with retired Ambassador and former Acting Director General of the Foreign Commercial Service Chuck Ford, AAD work on two reports covering U.S. government support (focused on Department of Commerce, Department of State and U.S. embassies and consulates abroad) to assist U.S. business win sales, contracts, investment opportunities and other deals against increasingly strong foreign competition, often benefiting from much more effective advocacy and support programs from competitor governments.

The original report Support for American Jobs, Part I from March 2016 has now been supplemented with Part II from June 2017, which goes into further detail, at the request of the Commerce and State Departments, on three specific issues, including a detailed analysis of the commercial diplomacy programs of leading competitor governments.

“The “Executive Report” cover document addressed to leaders in the Trump administration paints a clear picture of foreign governments stepping up their games in support of their own companies, large and small, and suggests ways the new administration might be able to launch a major commercial diplomacy initiative do the same to help U.S. companies win on increasingly competitive international battlefields,” said Donnelly.

Donnelly and his AAD colleagues will be meeting with administration and congressional leaders over the coming weeks, seeking increased awareness of and action on the issue.  One of the potential merits of the nexus of commercial diplomacy issues is that it avoids some of the contentious atmosphere that surrounds U.S. trade policy debates (e.g. NAFTA, Trans Pacific Partnership, steel, World Trade Organization, etc.) and simply focuses on how the U.S. government might be better able to help our companies (and thereby our workers, shareholders and communities) win contracts, sales and deals and whatever trade policies the U.S. government is pursuing.

If you or colleagues at your organization have questions or would like to discuss the reports or commercial diplomacy in general, or if you’d like to help move these issues forward, feel free to contact Donnelly at sdonnelly@uscib.org.

Connect to Business Opportunities in Southeast Europe

The markets of Southeast Europe are investing in infrastructure and market development, representing an opportunity for U.S. companies to increase sales and find a strategic foothold to grow in Europe. The region features strategic ports and bustling overland trade routes to established markets, and these individual markets are all heavily investing in infrastructure growth and market development.

Trade Winds, the largest annual U.S. government-led trade mission, will lead U.S. companies and organizations to Southeast European markets in October 2017, to connect them to promising business opportunities. In nine international Trade Winds events, the U.S. Commercial Service team has facilitated more than $240 million in export sales for U.S. companies. The visit will take place from October 16-24, 2017.  The deadline for registration is August 12.

“USCIB members looking to expand into the rapidly developing markets of Southeast Europe can take advantage of this valuable service provided by the U.S. Department of Commerce,” said Mike Michener, USCIB’s vice president for product policy and innovation. “The trip also conveniently coincides with several UN meetings and conferences in October in Rome and Geneva,” added Michener.

More information is available here or by calling Dorette Coetsee at the U.S. Commercial Service in Columbia, SC, at 803-255-2623.

G20 Reaffirms Commitment to Resist Protectionism

German Chancellor Angela Merkel at G20 Summit

Leaders of the Group of 20 major economies wrapped up their summit in Hamburg, Germany by issuing a communiqué that forged compromise language over trade enforcement and trade liberalization, and advanced discussion of the digital economy.

But the Trump administration appeared isolated on climate change, with the other G20 nations recommitting themselves to action under the Paris Climate Agreement despite the U.S. pledge to withdraw.

“G20 leaders said the right words about resisting protectionism which will be essential in ensuring access to good jobs in the 21st century,” said USCIB President and CEO Peter M. Robinson, who serves as a co-chair of the B20 (Business 20) Employment and Education Task Force.

In their final statement, the G20 leaders committed to keeping global markets open, “noting the importance of reciprocal and mutually advantageous trade and investment frameworks and the principle of non-discrimination.”

German Chancellor Angela Merkel said at a closing press conference on Saturday: “I am satisfied that we managed to say clearly that markets need to remain open.”

John Danilovich, secretary general of the International Chamber of Commerce, said: “We commend the G20’s focus on strengthening the multilateral trading system. A strong, rules-based trading system is a pre-requisite to achieve the G20 leaders’ laudable ambition of making globalization work for all.”

USCIB’s Robinson also welcomed progress made by the G20 governments on enhancing digital commerce.

“We agree with the leaders statement that continued growth and innovation spurred by the digital economy will be essential to meeting the needs of people around the world,” he said. “It’s important that governments maintain a fundamentally pro-investment and pro-competition approach to the digital economy.”

But Robinson had a mixed reaction to the final language on climate change action. “Other members of the G20 are ramping up their cooperative efforts and joint action on climate,” he said. “so we encourage the United States to remain connected and involved in international collaboration for energy security and innovative technology deployment that is essential both for U.S. prosperity as well as tackling climate challenges at home and abroad.  USCIB continues to encourage the Administration to consider how to advance these efforts in the UN Climate treaty while it considers ways to re-enter the Paris Agreement.”

Regarding education and employment, Robinson emphasized the importance of educating, training and retraining to gain the necessary skills for the future of work, noting “workers need to be able to successfully adapt to change.”