On Tuesday, January 13, the EU Commission released its final report on the online public consultation on investment protection and investor-state dispute settlement (ISDS) in the Trans-Atlantic Trade and Investment Partnership (TTIP). In response, USCIB issued a press release noting the importance of a strong investment chapter including ISDS in the agreement. USCIB also played a leading role in pulling together a group of 15 major business groups on both sides of the Atlantic to issue a joint statement that same day.

The commission launched the consultation in response to public concerns about whether the EU’s proposed approach for TTIP would achieve the right balance between protecting investors and safeguarding the EU’s ability to regulate in the public interest.

The commission – which issued a consultation questionnaire about 12 issues concerning investment protection and ISDS in TTIP – had received a total of nearly 150,000 replies by the July 13 deadline, with the vast majority (around 145,000, or 97%) submitted through various online platforms with pre-defined answers. Most replies were skeptical of investor protections and ISDS.  In addition to these mass-produced responses, there were also submissions from more than 3,000 individual citizens, and about 450 organizations, including USCIB.

According to the report, the commission received responses in three broad categories: statements indicating opposition or concerns to TTIP in general, concerns or opposition with regard to investment protection and ISDS in TTIP, and specific views in relation to the various aspects presented under each question, often accompanied by concrete suggestions for the way forward.

“The commission has not made a clear recommendation on how to move ahead with the negotiations,” said Eva Hampl, USCIB’s Director for Investment, Trade and Financial Services. “That suggests the volume of responses opposing investor protections in TTIP has not gone unnoticed.”

Instead of prescribing a concrete way forward, the commission merely noted four areas where they urge further improvements to be explored:

• the protection of the right to regulate
• the establishment and functioning of arbitral tribunals
• the relationship between domestic judicial systems and ISDS
• the review of ISDS decisions through an appellate mechanism

“Though not unexpected, the Commission report confirms that TTIP, particularly for investment and ISDS, will continue to be an uphill battle,” said Hampl.

USCIB submitted comments in support of an ambitious investment chapter including strong investor protection and ISDS representing the views of the U.S. business community.  USCIB also signed a joint statement with other U.S. and EU business associations upon the release of the report.

A high standard investment chapter including ISDS is crucial to a successful TTIP, and both the EU and the U.S. stand to gain significantly from a concluded agreement.

Passage of the Trans-Atlantic Trade and Investment Partnership (TTIP), a free trade agreement between the United States and the European Union, would stimulate economic growth and create jobs on both sides of the Atlantic. The agreement has been criticized over the past several months by anti-trade groups, especially over investor protections such as investor-state dispute settlement (ISDS).

To counter this negative messaging, Shaun Donnelly, USCIB’s vice president for investment and financial services, has been traveling around Europe as an American speaker for TTIP on behalf of U.S. embassies, spreading the word about the benefits of a strong, comprehensive, high-standard TTIP for both the United States and the European Union.

Last week, Donnelly visited Austria and Slovenia and participated in speaking engagements, meetings and interviews with government officials, business leaders, journalists and student groups. Anti-TTIP groups refused to speak with Donnelly.

“Austria and Slovenia are among the more ýTTIP-skeptical of EU member states and anti-ISDS fever runs high,” said Donnelly. “Our U.S. embassies in each capital are working hard to get our side of the story out and I was glad to lend a hand with some key audiences.”

USCIB is working with its member companies to mobilize support for TTIP in Europe and is seeking opportunities to promote and explain the business case for TTIP.

Ahead of President Obama’s State of the Union address, USCIB sent a letter to the president urging him to highlight the U.S trade agenda and call for passage of Trade Promotion Authority. The letter emphasizes that a strong push from the Administration, Congress and the business community is needed to get TPA over the finish line.

“This year will present opportunities for the U.S. to conclude trade and investment agreements that will ensure that the United States grows its economy, creates jobs and opens markets to U.S. goods and services reaching customers around the world,” wrote USCIB President and CEO Peter Robinson in the letter to President Obama. “TPA would provide a critical boost to achieving these shared goals among U.S. workers, companies and citizens.”

In addition, the Trade Benefits America Coalition, of which USCIB is a member, also sent a letter to House and Senate leadership urging Congress to pass bipartisan legislation to modernize TPA early this year.

The Trade Benefits America Coalition includes a wide range of associations and companies that are dedicated to the pursuit of U.S. international trade agreements that benefit American businesses, farmers, workers, and consumers. The Coalition believes that passage of modernized TPA legislation is important to help ensure America continues to benefit from trade.

Today, the Organization for Economic Cooperation and Development launched its Foreign Bribery Report in Paris. The report presents an analysis of foreign bribery cases that have been concluded since 1999, and it is intended to help combat transnational corruption.

The launch event included an opening address by OECD Secretary General Angel Gurría, an address by French Minister of Justice Christiane Taubira, and a panel discussion with experts, including, GE Senior Vice President, Secretary and General Counsel Brackett B. Denniston, U.S. Department of Justice Assistant Attorney General Leslie R. Caldwell, chair of Transparency International José Carlos Ugaz, and Siemens Chief Compliance Officer Klaus Moosmayer, who is also the chair of the Business and Industry Advisory Committee (BIAC) Task Force on Anti-Corruption/Bribery.

Shaun Donnelly, vice president of investment and financial services at USCIB, as well as Kimberley Claman, senior vice president of international government affairs at Citi, represented USCIB at this event. They were joined by Hanni Rosenbaum, senior policy director at BIAC, who leads their anti-bribery effort.

The report provides an analysis of 427 foreign bribery cases that have been concluded since the entry into force of the OECD Anti-Bribery Convention in 1999. Key findings include that 53 percent of cases involved corporate management or CEOs, one in three cases were instigated by self-reporting (versus only two percent of cases by whistleblowers), 57 percent of cases involved bribes to obtain public procurement contracts, a staggering 75 percent of cases involved payments through intermediaries, and 69 percent of cases were settled with sanctions.

The various speakers all noted the groundbreaking importance of the report, however also emphasized that understanding the problem is only part of the solution. Addressing this point, the report concludes with Next Steps, including a list of ideas for future work, such as annual updates, a public database, further study of SOEs, or additional study of the demand side of bribery, a point Secretary General Gurria also noted in his comments.

This OECD report presents an important step forward in the OECD’s anti-bribery work surrounding the Convention.

Staff contacts: Shaun Donnelly and Eva Hampl