News Stories Archives

Business Says Euro Debt Deal Only First Step

Published on October 27, 2011
ICC Chairman Gerard Worms
ICC Chairman Gerard Worms

The International Chamber of Commerce (ICC) welcomed the agreement reached by leaders to address the challenges of sovereign and bank debt in Europe, calling it a development that should contribute to restoring confidence and stability to the world economy.  But ICC, which USCIB represents in the United States, said it believes that a strong multilateral effort by all G20 countries will be needed to lead the world economy into a position of renewed growth and job creation.

“The leaders of the G20 are uniquely placed to build on this example of European unity to adopt a plan that will take the world economy beyond the reach of instability and growing unemployment,” said ICC Chairman Gerard Worms. “As they did in 2009, the G20 can agree on a plan where emerging and developed economies chart a course out of crisis into a new period of growth and job creation.”

ICC said greater coordination and more effective international governance are crucial for ensuring that economic policies are consistent and contribute to global stability.  It said this can best be brought about by continuing to develop a more formal framework between the G20 countries – the leaders of which are meeting for a Summit in Cannes, France on November 3-4 – and key intergovernmental financial institutions like the International Monetary Fund.

USCIB Chairman Harold McGraw III, CEO of The McGraw-Hill Companies and also vice chairman of ICC, will participate in the B20 Business Summit taking place just prior to the G20 Summit in Cannes, which ICC is organizing alongside other major business groups.

Read more on ICC’s website.

Staff contact: Rob Mulligan

Revised ICC Rules Boost G20 Efforts to Curtail Corruption

Published on October 17, 2011
From left: Francois Vincke, vice-chair of the ICC Commission on Corporate Responsibility and Anti-Corruption; and Jean-Guy Carrier, ICC secretary general
From left: Francois Vincke, vice-chair of the ICC Commission on Corporate Responsibility and Anti-Corruption; and Jean-Guy Carrier, ICC secretary general

The International Chamber of Commerce (ICC) has launched the ICC Rules on Combating Corruption in response to the G20’s call on business to stamp out corruption. The new ICC rules delineate measures companies should take to prevent corruption, including strong measures to end bribery and extortion.

ICC pointed out that G20 efforts to stabilize the economy and stimulate economic growth, trade and employment must address the drain on the economy caused by corruption. ICC Secretary General Jean-Guy Carrier said: “Corruption is a real threat to the integrity of markets, especially at a time when confidence and stability are most needed. Stamping out corruption will stimulate job creation, boost business confidence and open doors for emerging markets to attract foreign direct investment.”

The World Bank has estimated that corruption reduced annual economic growth by up to 1%, while the IMF reports that investment in corrupt countries is reduced by at least 5% when compared to countries that are relatively corruption-free.

The G20 has pledged to ‘lead by example’ through its Anti-Corruption Action Plan, which calls for ratification of the United Nations Convention against Corruption (UNCAC) and adoption of other laws  aimed at thwarting bribery and corrupt practices, and also asks business to strengthen corporate efforts in fighting corruption. ICC has urged G20 leaders to ratify and implement UNCAC and encourages work with non-G20 states toward its universal adoption and implementation.

Read more on ICC’s website.

Download a PDF copy of the ICC Rules on Combating Corruption

Download the ICC’s Recommendations to the G20 on Fighting Corruption

Business Groups Continue to Oppose China Currency Bill

Published on October 12, 2011

In response to proposed legislation aimed at pressuring China to accelerate the appreciation of its currency against the dollar, USCIB has been working with a coalition of other trade associations, led by the U.S.-China Business Council, to oppose the bill.

The Currency Exchange Rate Oversight Reform Act would label currency manipulation as a foreign subsidy, triggering U.S. tariffs on Chinese goods.

In a September 21 letter to Congress, USCIB and over 50 trade associations emphasized the importance of balancing bilateral with multilateral pressure on China.

“In addition to continuing U.S. government efforts, our organizations support strong, coordinated and enhanced multilateral pressure through international organizations such as the G-20 and APEC to promote China’s adoption of market-determined currency and exchange rate policies,” the letter stated.

On October 11, the controversial legislation was voted through the Senate without amendment by a vote of 63-35.  One proposed amendment submitted by Senator Orrin Hatch (R – Ut.).had included a multilateral approach to pressuring China on the appreciation of its currency.

Ten Years On: China in the WTO

This year marks the tenth anniversary of China’s membership in the World Trade Organization.  In October, as we have done each year since 2001, USCIB delivered a comprehensive statement to U.S. Trade Representative Ron Kirk’s office  on China’s compliance with its WTO obligations.

USTR collects this invaluable information from the business community to assist in preparing its report to Congress on China’s WTO compliance. USCIB members provided updated information in several cross-sectoral areas as well as those affecting their specific industries.  Among the top concerns were China’s policies and practices in indigenous innovation, intellectual property rights enforcement, transparency and standards.

We thank the USCIB members who took the time to send in updates and help us prepare the statement.

The Treasury Department has announced that it will delay publication of the semi-annual Report to Congress on International Economic and Exchange Rate Policies of the U.S.’s major trading partners until later this year, to allow time to assess progress following several international meetings, including the G20 finance ministers/central banks meetings on October 14-15 and the G20 and APEC summits in November.

USCIB will continue to monitor the progress of the proposed currency legislation and work with industry associations to ensure that the voice of business is heard on the importance of a multilateral approach to China’s management of its currency.

Staff contact: Justine Badimon

More on USCIB’s China Committee

Gamble to Chair ICC Commission on Trade and Investment Policy

Published on October 7, 2011
Dupont’s Geoffrey Gamble’s.
Dupont’s Geoffrey Gamble’s.

The International Chamber of Commerce recently announced the appointment of USCIB board member Geoffrey Gamble as the incoming chair of the ICC Commission on Trade and Investment.  USCIB serves as ICC’s American national committee.

Mr. Gamble is director of international affairs with Dupont, where his responsibilities include leading the company’s global government affairs network, the development of corporate trade policy and providing legal counsel in the areas of international and comparative law, trade law, and global ethics. He previously served as vice chair of the commission.

More on USCIB’s Trade and Investment Committee

New Book by WTO and ILO on Sustainable Globalization

Published on September 27, 2011

USCIB Trade and Investment Update

USCIB members met with several key trade officials this month, as part of our ongoing efforts to advance a positive trade agenda in the United States and overseas.

At the September 8 meeting in Washington of USCIB’s Trade and Investment Committee, members had a wide-ranging discussion with Deputy U.S. Trade Representative Miriam Sapiro.  Themeeting covered the status of the pending free trade agreements with Korea, Colombia and Panama, as well as Trade Adjustment Assistance, on Capitol Hill; the stalled WTO Doha Round negotiations; Russia’s accession to the WTO; and trade with the Middle East and North Africa.  On hand at the meeting were additional representatives from USTR and the State Department to review the status of the U.S. model bilateral investment treaty (BIT) , as well as BIT negotiations with China, India and several other countries.  Committee members also agreed to establish a task force to discuss and develop a USCIB paper on revitalizing the global trading system.

Also in Washington, on September 19, USCIB hosted a roundtable for members with Ken Ash, director of the OECD’s Trade and Agriculture Directorate, and Raed Safadi, his deputy.  Mr. Ash discussed the OECD’s work on developing a Services Trade-Restrictiveness Index, a sector-by-sector database of trade-restrictive regulations.  He said it was especially important to encourage the BRIC countries to take part in this effort.  Mr. Safadi briefed members on the International Collaborative Initiative on Trade and Employment program, which is conducting a number of studies into the relationship between trade and jobs.  22 countries are participating in preparing papers on 24 themes.

On September 20, the World Trade Organization (WTO) and the International Labor Organization (ILO) launched Making Globalization Socially Sustainable, a publication that is the product of a collaborative two-year research program funded by the ICC Research Foundation, the research arm of USCIB affiliate the International Chamber of Commerce.

The book underlines globalization’s potential to stimulate productivity and growth, while highlighting the importance of pursuing trade, employment and social policies together in order to harness this potential. It contains contributions from leading academic experts who analyze the various channels through which globalization affects jobs and wages.

“The International Chamber of Commerce will draw from the findings of this research project to make concrete policy recommendations to G20 leaders,” said ICC Chairman Gerard Worms. “The ICC Research Foundation is very pleased to have supported this project, which will contribute to a better understanding of making globalization sustainable.”

The ICC Research Foundation was created in 2009 to fund independent research that contributes to public knowledge and debate, with the goal of improving economic conditions around the world. It also aims to promote a deeper understanding by policymakers, the media and the public of the benefits of global trade and investment.

Read more on ICC’s website.  Visit the WTO Online Bookshop to purchase a print copy of the publication.

Separately, WTO Director General Pascal Lamy told the ICC Executive Board on September 16 he was happy that cooperation ICC and the WTO has increased in recent years.  Mr. Lamy addressed the ICC Executive Board for more than an hour and then fielded questions from board members. He covered topics including the ICC-WTO working relationship, the Doha Round of trade negotiations, and issues surrounding protectionism and trade facilitation.

In addition to the above-mentioned book project, the ICC-WTO partnership has taken on various forms, with recent examples including ICC policy input on the topics of trade and investment, intellectual property and competition, ahead of the WTO Ministerial Conference on December 15-17.

Business Leaders Meet in Hong Kong to Rethink Global Recovery

Published on September 23, 2011

The ICC G20 Advisory Group, an initiative of USCIB’s affiliate the International Chamber of Commerce, today consulted with the CEOs of leading regional companies to deliver business input on economic growth and job creation to G20 leaders.

The roundtable in Hong Kong was hosted by ICC Honorary Chairman Victor K. Fung, chairman of the Li & Fung group of companies. Outcomes of the discussions will form a basis for business views being brought to the G20 Summit, November 3-4 in Cannes, France.

“Recent events have shown the fragility of economic recovery and highlighted the need for forward-looking measures to support trade, global economic cooperation and job creation,” said Mr. Fung.  “Our focus on jobs is deliberate: every major economy is facing serious challenges in this area, whether due to fiscal concerns, demographic change, or social integration.”

Read more on ICC’s website.

More on ICC’s G20 Advisory Group

Business Presses for Action on State-Owned Enterprises in Trans-Pacific Trade Talks

Published on September 7, 2011

USCIB has joined with three other business groups in urging the U.S. government to propose strong disciplines on state-owned enterprises in the context of the Trans-Pacific Partnership (TPP) negotiations.

In a letter to Michael Froman, the deputy national security advisor for international economic affairs, and Demetrios Marantis, deputy U.S. trade representative, the groups wrote:

“On the eve of the Chicago Round, the stakes in the TPP could not be higher. A successfully concluded TPP that sets the benchmark for 21st century bilateral, regional and multilateral trade and investment disciplines will go a long way towards establishing new rules of the road that would help U.S. companies and workers overcome the serious disadvantages that they face in competition with SOEs as commercial actors.

“We are concerned, however, that the final text tabled by the United States in the negotiations may fall short of the robust and detailed disciplines that are needed to ensure that U.S. exporters, investors, and American workers are able to compete on a level playing field against SOEs and the government support which they receive through myriad preferential policies.  For our organizations, the TPP does not represent an incremental opportunity; it is an opportunity for an ambitious and game-changing approach worthy of the 21st century model it is intended to represent.

“As a result, we strongly encourage a final text be tabled that prescribes a detailed and comprehensive code of conduct to TPP negotiating partners.  This code of conduct should include disciplines and obligations that can effectively deter governments from employing policy mechanisms that advantage SOEs in the marketplace when in competition with private actors.”

Other groups signing the letter were the National Foreign Trade Council, Coalition of Service Industries and U.S. Chamber of Commerce.

Staff contact: Shaun Donnelly, sdonnelly@uscib.org

Business letter on Trans-Pacific Partnership

From the President: Dealing With State-Owned Enterprises (Winter 2010-2011)

More on USCIB’s Trade and Investment Committee

Business Groups Urge No More Delays on Trade Pacts and Adjustment Assistance

Published on July 7, 2011

Yesterday USCIB joined with 33 other business groups on a letter to the leaders of the Senate Finance Committee and House Ways and Means Committee urging them to move forward on the three pending U.S. free trade agreements with Colombia, Korea and Panama, and to work out an agreed approach to Trade Adjustment Assistance (TAA).

“We applaud the work of your committees for taking these next steps toward approval of these vital agreements,” the groups wrote. “To level the playing field for trade, create American jobs, and reaffirm U.S. leadership, [we] urge the swift approval of the three agreements and resolution of the differences over Trade Adjustment Assistance by both the House and Senate.”

Today both committees were expected to hold mock markups to move the approval process forward. The House implementing bill does not include TAA, while the Senate implementing bill does.

Staff contact: Rob Mulligan

Business association letter

More on USCIB’s Trade and Investment Committee

ICC Denounces G20 Rise in Protectionism

Published on June 3, 2011

USCIB’s affiliate the International Chamber of Commerce (ICC) is urging G20 leaders to keep markets open to trade, following worrying results from a recently released WTO-OECD-UNCTAD report that G20 countries are increasing protectionist measures.

The joint report by the World Trade Organization (WTO), the Organization for Economic Cooperation (OECD) and United Nations Committee on Trade and Development (UNCTAD) on G20 trade and investment measures, released May 24, 2011, found that more new trade restrictive measures have been implemented in the past six-month period than in any previously reported period. From October 2010 to April 2011 alone, G20 members implemented 30 new export restrictions.

This occurred despite the G20’s reaffirmation at the 2010 Seoul Summit to resist protectionism until the end of 2013. G20 leaders had agreed early that year, at their Toronto Summit, to withdraw any protectionist measures in the pipeline, including export restrictions and WTO–inconsistent measures for stimulating exports. The WTO-OECD-UNCTAD report reveals that the exact opposite is taking place.

The joint report further confirms an ICC-commissioned study, released by the Peterson Institute for International Economics in 2010, stating that all G20 countries have implemented protectionist trade measures since 2008. Concerns in the global business community about this protectionist trend have prompted ICC to put into place its own indicator to monitor market openness. The Open Market Index will provide an annual ranking of the 50 top-trading countries by order of their openness to trade and investment. This private sector indicator to monitor protectionism will be launched ahead of the G20 Summit – being held in Cannes, France on November 3-4, 2011.

Staff contact: Rob Mulligan

More on the ICC-commissioned study by the Peterson Institute for International Economics

More information on Global Trade Alert

More on USCIB’s Trade and Investment Committee

USCIB Urges Active Trade and Investment Agenda

Published on March 8, 2011
President Obama and Korean President Lee Myung-bak at last fall’s G20 Summit in Seoul. A U.S.-Korea trade pact has been submitted to Congress.
President Obama and Korean President Lee Myung-bak at last fall’s G20 Summit in Seoul. A U.S.-Korea trade pact has been submitted to Congress.

Providing its views on the Obama administration’s trade policies and outlook, USCIB submitted written testimony to a February 9 hearing in the House Ways and Means Committee, calling on the administration to “pursue an active trade and investment agenda to open global markets.”

USCIB commended the administration for finalizing the U.S.-Korea free trade agreement, for pledging to double U.S. exports over five years, and for moving forward on the Trans-Pacific Partnership negotiations. It also said efforts to improve enforcement of existing trade agreements, especially through the World Trade Organization, had been helpful.

But much more could be done to open global markets for U.S. business, according to USCIB.  The testimony stated: “The key elements of a trade and investment agenda should include: completing the Free Trade agreements with Korea, Colombia and Panama; concluding an ambitious Doha Agreement in the World Trade Organization; moving forward with the Trans-Pacific Partnership negotiations to reach a high-standard trade framework; identifying new bilateral and multilateral trade initiatives with significant economic partners; addressing ongoing U.S.-Chinese trade and investment issues; accelerating work on investment treaties that will ensure protection of U.S. business investments in other countries; and aggressively promoting U.S. exports of clean technologies and environmentally-friendly goods and services.”

USCIB urged the administration to act “quickly and decisively” and to undertake new trade initiatives with leading trading partners in the near term.

On March 1, U.S. Trade Representative Ron Kirk released the Obama administration’s trade agenda.  “This agenda reflects our commitment to a job-focused, comprehensive trade policy that benefits American businesses and workers as well,” he said.

This week Mr. Kirk said his office had finished preparing the Korea free trade agreement for submission to Congress.  He also stated that the Colombia and Panama FTAs will require “weeks or months” of additional work to finalize, and that the administration intends to press ahead and seek approval of just the Korea pact at this time.  Trade proponents on Capitol Hill and in the business community have urged that the Colombia and Panama pacts be quickly finalized so that Congress can consider the three FTAs at the same time.

Staff contact: Rob Mulligan

USCIB Testimony on the Administration’s Trade Agenda

More on USCIB’s Trade and Investment Committee