News Stories Archives

U.S. Embassy in Ethiopia Honored for Commercial Diplomacy

Published on October 7, 2016
joy_award
Winners of the Benjamin Joy Award

The U.S. Departments of State and Commerce have for the first time ever recognized one overseas commercial diplomacy team whose effective cooperation has advanced U.S. commercial and economic objectives. The award was presented jointly in a ceremony at the State Department on September 29 by Commerce Department Assistant Secretary Arun Kumar and State Department Assistant Secretary Charles Rivkin to a team from the U.S. Embassy in Addis Ababa, Ethiopia.

The Benjamin Joy Award was created to highlight and promote inter-agency collaboration and honor commercial diplomacy excellence. The winning team, led by former U.S. Ambassador to Ethiopia Patricia M. Haslach, includes Deputy Chief of Mission Peter H. Vrooman, Senior Foreign Commercial Service Officer Tanya Cole, Trade and Investment Promotion Officer Gaia Self, Commercial Specialist Tewodros Tefera, and Advocacy Center Regional Manager Nnaji Campbell. The embassy’s leadership and innovation advanced U.S. business interests in Ethiopia and created a model for U.S. missions to support fair competition and increase U.S. exports in Africa.

USCIB Vice President Shaun Donnelly, a retired U.S. ambassador who has also worked recently with Commerce and State on commercial diplomacy policy under the auspices of the American Academy of Diplomacy, represented USCIB at the awards ceremony.  Several leading USCIB member companies also attended.

The winner was selected from 43 nominations from U.S. embassies and consulates around the world. The award’s namesake, Benjamin Joy, was an early exemplar of U.S. commercial and economic diplomacy, appointed in 1792 by President George Washington as the first American consul and commercial agent to India. Today, there are more than 200 diplomatic outposts helping to strengthen America’s economic reach and positive economic impact.

More details on the award are available in the State Department press release and in the remarks at the ceremony by Assistant Secretary Rivkin.

New Survey Finds Worsening Global Shortage of Trade Finance

Published on October 7, 2016

2016 ICC Global Survey on Trade Finance shortfall_sourceBusiness executives have identified a sharp decrease in the availability of financing for cross-border trade, according to the latest annual survey of global trade finance from the International Chamber of Commerce. According to the survey — which received 357 responses from 109 countries worldwide — 61 percent of respondents reported a global shortage of trade finance . Only 52 percent of respondents reported an increase in trade finance activity, compared to 63 percent in 2015 and 80 percent in 2012. Furthermore, the perceived shortfall came predominantly from regional and global banks — 78 percent and 56 percent respectively, compared to 41 percent of national banks.

ICC Secretary General John Danilovich said: “We must emphasize the importance of trade finance. It is often forgotten – trade finance has dropped off the international agenda. We need to do more to communicate its central importance to the global economy.”

Read more and download the survey on the ICC website.

 

How and Why to Rethink Data Fow Restrictions

Published on September 28, 2016

Digital_economyTaking part in discussions on the latest developments in world trade at the World Trade Organization’s Public Forum in Geneva this week, the International Chamber of Commerce (ICC) has signaled increasing business concern regarding countries that impose restrictions on cross-border data flows without considering the impact on their respective economies and small- and medium-sized enterprises (SMEs) that make up 95 percent of enterprises globally.

In a new set of recommendations issued today at the Forum, ICC calls on policymakers to consider the detrimental effects to GDP growth from applying blanket restrictions and highlights the importance of creating trusted environments to better enable use of information and communication technologies (ICTs), and related data flows, on which companies of all sizes rely.

The flow of digital information is a key driver of economic development and inclusive growth by raising productivity, increasing efficiency, broadening participation in and facilitating access to markets not least for developing-economy businesses.

Over the last 10 years data flows are estimated to have raised world GDP by at least 10% and today exert a larger impact on GDP growth than trade in goods.

“The Internet and Internet-enabled services, which rely on cross-border data flows, are vital for companies across all sectors of the economy and are particularly critical for small- and medium-sized enterprises,” the ICC paper says. “Access to digital products and services, such as cloud applications, provides SMEs with cutting edge services at competitive prices, enabling them to participate in global supply chains and directly access customers in foreign markets in ways previously only feasible for larger companies.”

To help policymakers address negative implications for growth from blanket restrictions to data flows, the new ICC primer outlines seven steps that governments can take to ensure citizens and companies realize the full potential of the Internet as a platform for innovation and economic growth.

The recommendations are:

Build trust

This can be done by ensuring that users have appropriate control and practical mechanisms with regard to how personal data is used, and the companies to which they entrust their data should adopt recognised and applicable best practice to ensure that the data is appropriately secured as technology and services evolve.

Promote the establishment of a new trade principle

This should include the underlying objective of allowing the flow, storage, and handling of all types of data across borders, subject to privacy and security laws and other laws affecting data flow covered under GATS article XIV.

Be non-discriminatory

Certain compelling public policy issues – including privacy and security – are recognised as possible exceptions and may form a legitimate basis for governments to place some limits on data flows if they are implemented in a manner that is non-discriminatory, is not arbitrary, is least trade restrictive, and not otherwise a disguised restriction on trade.

Include relevant players and show consistency

Any limits on cross-border data flows for privacy and security objectives should be consistent with GATS obligations, and include all relevant players and are equally applied.

Promote coherence

This can be done through national rules and regulations that affect the movement of goods, services, and information across borders.

Support the Internet’s enabling role

Especially for SMEs to grow and participate in global trade.

Ensure any regulatory measures which limit data flows are necessary to accomplish the recognised and compelling public policy objective

Measures should be the least trade restrictive policy alternative needed to effectively address the issue, not be arbitrary or discriminatory, and not be disguised restrictions on trade in services.

Read Trade in the digital economy: A primer on global data flows for policymakers

Business Urges Congress to Approve Ex-Im Bank Quorum Requirement

Published on September 15, 2016

Money_globeUSCIB joined 14 other business associations urging Congress to approve the Export-Import (Ex-Im) Bank’s quorum requirement so that it may again review transactions over $10 million.

“While the Ex-Im Bank is back in operation and accepting new applications, it is prohibited from approving significant transactions because of the lack of a quorum on the Bank’s Board of Directors,” the business group wrote in a letter sent to Congressional leaders on September 12. “As a result, manufacturers and other exporters throughout the United States are at a significant disadvantage to global competitors who are aggressively supported by their own governments’ export credit agencies.”

The business associations argued that a fully operational bank would support millions of U.S. jobs by enabling companies to compete more successfully in the global economy. USCIB and others noted that the Bank is a vital tool in leveling the global playing field, helping American businesses secure new customers, particularly in emerging markets.

“With every passing day, businesses from the United States are missing out on new business opportunities overseas, to the detriment of local economies and American jobs. Congress can and must act swiftly,” USCIB and others wrote. “As associations representing millions of businesses throughout the United States, we urge you to move forward legislation as part of the Continuing Resolution that will enable Ex-Im to consider and act on all transactions immediately to boost America’s ability to compete globally.”

Read the full letter.

G20 Leaders Make Broad Commitments to Expand Trade, Resist Protectionist Policies

Published on September 9, 2016

G20G20 leaders held their annual summit in Hangzhou, China on September 4-5.  USCIB participated in the B20 Trade and Investment taskforce this past year, and we were pleased to see that the G20 leaders statement included support for several issues on trade that were part of the B20 recommendations.  Some of the key aspects of the statement:

  • G20 leaders committed to ratification of the Trade Facilitation Agreement by the end of 2016 and called on other WTO members to do the same.
  • They committed to advancing negotiations in the WTO on issues remaining from the Doha Development Agenda  and recognized the need to discuss in the WTO other issues that may be of common interest to members and of importance to today’s economy.
  • Leaders reiterated their opposition to protectionism and extended their commitments to standstill and rollback of protectionist measures until the end of 2018.
  • Those participating in the Environmental Goods Agreement negotiations welcomed the landing zone achieved in the EGA negotiations and reaffirmed their efforts to conclude by the end of 2016.
  • Leaders endorsed the G20 Strategy for Global Trade and Growth, under which the G20 will lead by example to lower trade costs, harness trade and investment policy coherence, boost trade in services, enhance trade finance, promote e-commerce, and address trade and development.

Following the summit, the International Chamber of Commerce (ICC), for which USCIB serves as the American national committee, issued a statement calling on G20 leaders to match their actions to their words to push back against a rising tide of protectionism worldwide.

“In the current environment, it will be critical for the G20 governments to follow through on these and the other commitments they made in their communique,” said Rob Mulligan, USCIB’s senior vice president for policy and government affairs. “We will be working directly with the U.S. government and, through ICC, with other governments to press for effective action.  We will also look to engage with German B20 leaders as Germany hosts the G20 for the coming year.”

Business Pushes for TFA Ratification at G20 Summit

Published on August 29, 2016

International flagsPromoting robust trade and investment is a key focus of the B20 2016 policy recommendations to the G20 summit, which will take place in Hangzhou, China on September 3 and 4. Business recommendations include improving the global investment environment, strengthening the multilateral system and rolling back protectionist measures. USCIB and several of its members contributed to the recommendations. According to Rob Mulligan, USCIB’s senior vice president for policy and government affairs, G20 governments can take one easy step to boost growth.

“The upcoming summit is an important opportunity for the G20 to push for the ratification of the World Trade Organization’s Trade Facilitation Agreement by the end of this year,” Mulligan said. Once implemented, the TFA has the potential to increase global exports by up to $1 trillion per year, according to the WTO’s World Trade Report.

The International Chamber of Commerce (ICC) also published a set of business recommendations for sustained economic growth ahead of the G20 summit.

Additionally, President Obama will promote the Trans-Pacific Partnership (TPP) during his upcoming trip to China and Laos in early September, according to a White House statement released on August 18. As part of Obama’s Asia trip, he will attend the G20 summit and use use the visit as an opportunity to discuss a wide range of global and regional issues, including adoption of TPP.

“This visit also will support the President’s efforts to expand opportunities for American businesses and workers to sell their products in some of the world’s fastest-growing markets,” the White House said in a statement. “Central to this effort is the Trans-Pacific Partnership, the high-standards trade agreement that will unlock key markets to American exports and cement America’s economic leadership in the Asia-Pacific.”

Obama’s push for TPP comes at a time of growing skepticism that the trade agreement will be approved before election day in November. Both Republican and Democratic nominees for president oppose the agreement.

Pro-Investment Policies Really Matter!

Published on August 4, 2016

International flagsThe OECD’s Development Assistance Committee (DAC) is the premier international body where major foreign donors discuss development policy issues and coordinate their assistance programs.  The DAC just released its 2016 Annual Report “The Sustainable Development Goals as Business Opportunities,” with a special focus on the key role the private sector and foreign direct investment (FDI) can play in economic development of poorer nations.  The DAC report was unveiled last Month in New York during the United Nations’ High-Level Political Forum, where USCIB member companies and the International Chamber of Commerce played a lead role in highlighting the efforts business is making to support the UN Sustainable Development goals (SDGs).

Shaun Donnelly, USCIB’s vice president for investment and financial services, was one of the outside commentators representing a wide range of views invited to offer opinion pieces sprinkled throughout the DAC report. Donnelly’s piece, “Pro-Investment Policies Really Matter,” argues that foreign direct investment can be a major contributor to economic development only if the recipient countries have the right pro-investment policies and a strong rule-of-law culture.

Read Donnelly’s Pro-Investment Policies Really Matter

Read the OECD DAC Report: The Sustainable Development Goals as Business Opportunities

Check out USCIB’s coverage of the report here.

 

USCIB Talks Trade with European Journalists

Published on July 21, 2016
Shaun Donnelly (third from left).
Shaun Donnelly (third from left).

If passed, the Transatlantic Trade and Investment Partnership (TTIP), a trade agreement between the United States and the European Union, would liberalize one third of global trade, stimulating economic growth and creating jobs on both sides of the Atlantic.

On July 18, USCIB Vice President Shaun Donnelly and Eva Hampl, director of investment, trade and financial services, hosted a dozen visiting journalists from European Union nations to discuss the on-going TTIP negotiations.

The group of European journalists, visiting Washington and Boston on a week-long program sponsored by the U.S. State Department to familiarize European media leaders with American perspectives on T-TIP, met with representatives from government, academia, business and other experts.

Donnelly and Hampl had a lively, hour-long on-the-record session which focused on investment chapter issues, including Investor-State Dispute Settlement (ISDS), regulatory issues and the political backdrop to the negotiations on both sides of the Atlantic. The meeting provided a good opportunity for USCIB to articulate U.S. business positions, priorities and concerns on the important TTIP negotiations.

Please contact Donnelly (sdonnelly@uscib.org) or Hampl (ehampl@uscib.org) for additional details on the interview session for interested members.

USCIB Helps State Department Launch 2016 Investment Climate Statements

Published on July 8, 2016

Donnelly_CSISAn important component of the U.S. State Department’s economic mission, the Investment Climate Statements contain country-level information on a variety of issues important for U.S. businesses, such as market barriers, business risk and intellectual property rights. On July 5, the Center for Strategic and International Studies (CSIS) hosted the State Department’s presentation of the statements’ key findings. USCIB Vice President for Investment and Financial Services Shaun Donnelly joined leaders from the State Department’s Economic and Business (EB) Bureau, and other investment experts for the launch event.

Scott Miller, Scholl Chair holder in International Business at CSIS and a former Chair of USCIB’s Trade and Investment Committee, emceed the roll-out event. Kurt Tong, Acting Assistant Secretary in the EB Bureau, highlighted the improvements made in this 2016 version of the 170 country-by-country Investment Climate Statement reports, each laying out the legal and policy environment, opportunities and challenges U.S. investors encounter, whether in an established European market, a key emerging market like China or India, or in a smaller developing nation. Donnelly and other panelists then offered observations on the value of the reports for USCIB members and American business.

“Anyone considering investments in a new market overseas should definitely consult the relevant Investment Climate Statements and may want to follow up in more detail with the key staff in State’s Investment Office or in the particular US embassy which prepared the relevant country report,” Donnelly said.

OECD Secretary General Addresses the Washington Trade Community

Published on June 22, 2016
Mulligan WITA
L-R: Rob Mulligan (USCIB), Nancy Donaldson (ILO), Ken Ash (OECD) and Shawn Donnan (Financial Times)

On June 17, USCIB participated on a panel organized by the Washington International Trade Association with the OECD on Trade and Inclusiveness, which followed a speech by OECD Secretary General Angel Gurria. Gurria delivered key points to an audience of over 80 people about the importance of trade and investment for economic growth.

Rob Mulligan, USCIB’s senior vice president for policy and government affairs, participated on a panel moderated by Shawn Donnan (Financial Times) and talked about the 10 recommendations that the Business and Industry Advisory Committee (BIAC) to the OECD made for increasing productivity, growth and prosperity. The recommendations included the need to address cross border trade barriers, improve regulation and regulatory cooperation, provide an environment conducive to investment, encourage lifelong learning, create a framework that supports innovation and the digital economy, and flexible labor markets.

There was a loose consensus among the speakers that policies to open trade and investment had to be supported by complimentary policies that facilitate opportunities for all to benefit from growth generated by trade. In the questions from the moderator the panel touched on global value chains, localization requirements, competitiveness, the changes in trade agreements over the last 20 years as well as several other topics.

Other panelists included Ken Ash (OECD) and Nancy Donaldson (International Organization of Employers).

USCIB will be organizing a trade and investment conference in Washington, D.C. in September.