Policy Positions and Statements Archives

Administration Goals for Modernizing NAFTA Include Many USCIB Priorities but Leave Out Key Issues

Published on July 14, 2017

Washington, D.C., July 17, 2017 – The United States Council for International Business (USCIB), which represents America’s top global companies and helps exporters of all sizes do business across borders, is encouraged that the objectives for modernization of the North American Free Trade Agreement (NAFTA) released by the office of the U.S. Trade Representative (USTR) today cover many of the issues proposed in USCIB’s submission last month. But the group said some of the objectives leave out references to key business priorities such as investor-state dispute settlement (ISDS).

USCIB President and CEO Peter M. Robinson said: “The fact of the matter is that a great many businesses base their success on increasingly seamless integration of the North American trading space. U.S. negotiators need to start from the premise that three-way trade and investment among the NAFTA partners should be enhanced, not restricted. A modernization effort must include strong investment protection provisions, including effective ISDS. We encourage USTR to maintain an intensive dialogue with affected U.S. stakeholders, including business, as they flesh out more detailed objectives, strategies and priorities.”

Last month, USCIB released its priorities for NAFTA modernization, calling on the administration to update the 23 year-old pact to accommodate new realities in global commerce, including the rise of the digital economy, while keeping what works from the original agreement.

USCIB urged the administration to update and strengthen key NAFTA provisions, including the liberalization and protection of investment flows, protection of intellectual property, customs and trade facilitation, regulatory cooperation, and improved agricultural market access. It also recommended tackling new areas not included or anticipated in the original agreement two decades ago, such as the digital provision of goods and services, data localization requirements, and state-owned enterprises.

About USCIB:
USCIB promotes open markets, competitiveness and innovation, sustainable development and corporate responsibility, supported by international engagement and regulatory coherence. Its members include U.S.-based global companies and professional services firms from every sector of our economy, with operations in every region of the world. As the U.S. affiliate of several leading international business organizations, USCIB provides business views to policy makers and regulatory authorities worldwide, and works to facilitate international trade and investment.

Contact:
Jonathan Huneke, USCIB
Tel: +1 917 420 0039
jhuneke@uscib.org

Donnelly Testifies on NAFTA at USTR-led Public Hearings

Published on June 30, 2017

With the Trump administration having served notice of its intention to modernize the North American Free Trade Agreement (NAFTA), USCIB has been advocating for modernization of certain aspects of NAFTA through op-eds, testimonies and meetings. Most recently, USCIB Vice President for Trade and Finance Shaun Donnelly presented USCIB views at the “NAFTA Testimony” hearings held on June 27 at the International Trade Commission (ITC). While held at the ITC, USTR was running the three days of public hearings. Staff from Commerce, State, Treasury, Department of Homeland Security, and Agriculture also sat on the panel and joined in questioning presenters.

Donnelly’s testimony stemmed USCIB’s written submission, which had been developed with member input, focused on NAFTA’s importance to U.S. business and that it should be updated given that it is no longer a “cutting edge” trade agreement. “By all means, update, modernize,” said Donnelly. “But NAFTA does not need a fundamental “root and branch” renegotiation. Give NAFTA a facelift, not a lobotomy,” he emphasized.

Donnelly also highlighted five key messages from USCIB’s written submission:

  1. Get strong digital economy provisions into NAFTA – e-commerce, cross border data flows, telecoms competition, prohibitions on data localization requirements.
  2. Update other key areas – e.g. standards and Technical Barriers to Trade (TBTs), cover new forms of services, strengthen IPR provisions and enforcement to incentivize innovation, develop a meaningful chapter on State-Owned Enterprises (SOEs).
  3. Update and strengthen customs and trade facilitation provisions; get higher de minimis levels.
  4. Strong investment provisions are essential. Implementation/arbitration through Investor-State Dispute Settlement (ISDS) is essential. ISDS works and it is important for many U.S. investors even in North America; don’t be seduced by criticism from the EU and NGOs about ISDS or the EU’s investment court proposal.
  5. Government Procurement chapter is important and its working. It’s balanced. Don’t rip it up. U.S. firms are selling a lot of goods and services to Canadian and Mexican government entities.

“Do the update quickly, seriously, trilaterally, in transparent manner, based on real issues of concern to the U.S. business community not with a political focus on bilateral trade balances or imposing unilateral trade barriers,” Donnelly concluded. “Work with U.S. business, we want to be partners in this important exercise.”

 

 

USCIB Statement on U.S. Withdrawal From the Paris Climate Agreement

Published on June 2, 2017

New York, N.Y., June 1, 2017 – The United States Council for International Business (USCIB), which represents America’s most successful global companies, issued the following statement on U.S. withdrawal from the Paris Climate Agreement:

“Like many others in the U.S. business community, USCIB is disappointed by the news that the Trump administration has elected to leave the Paris Climate Agreement. In our view, this decision could leave U.S. companies unprotected and exposed to possible discrimination under the Paris Agreement if the U.S. government is not at the table.

“The Paris Agreement is redefining global markets for energy and environmental goods and services, as well as providing major economic stimuli for companies. U.S. energy security and access were never threatened by the Paris Agreement, which allows each national government to define its own climate action plan. Moreover, the U.S. stands to benefit from trade and investment opportunities that the Paris Agreement will set in motion.

“We are interested to learn more about how the U.S. will pursue new arrangements while remaining in the UN Framework Convention on Climate Change. While it does so, we encourage the U.S. to stay involved on behalf of U.S. economic interests, and to bring U.S. solutions to this crucial global effort. We encourage the administration to reform areas of the UN climate framework toward more fair, transparent and balanced approaches that are responsive to U.S. circumstances and aspirations.

“USCIB members are committed to advancing sustainable development and environmental solutions through international cooperation, and have supported the UNFCCC and the Paris Agreement since their inception. Multilateral forums and cooperative approaches are the best way to address the transboundary challenges of energy access and innovation, climate change and sustainable development. In close coordination with our global business partners, including the International Chamber of Commerce (ICC) and the Major Economies Business Forum (BizMEF), USCIB will continue to champion U.S. business interests in the UNFCCC, and will seek opportunities to promote U.S. environment and energy solutions through business engagement and implementation, and to broadly deploy climate-friendly investment and innovation.

“USCIB has represented U.S. business interests in the UN climate negotiations for over 25 years, and during that time has benefited from the diligent efforts of U.S. government representatives at the table to advance and defend U.S. business interests, often under challenging conditions. We express thanks to the current U.S. climate negotiating team, and others with whom we have worked, for their extraordinary efforts on our behalf.”

About USCIB:
USCIB promotes open markets, competitiveness and innovation, sustainable development and corporate responsibility, supported by international engagement and regulatory coherence. Its members include U.S.-based global companies and professional services firms from every sector of our economy, with operations in every region of the world. As the U.S. affiliate of several leading international business organizations, including ICC, USCIB provides business views to policy makers and regulatory authorities worldwide, and works to facilitate international trade and investment. More information is available at www.uscib.org.

Contact:
Jonathan Huneke, USCIB
Tel: +1 212 703 5043
jhuneke@uscib.org

Industry Appeals to China on Cybersecurity Law

Published on May 15, 2017

With China’s broad cybersecurity law set to take effect next month, USCIB has joined with a range of industry groups from the United States and other countries in appealing for the country to delay its entry into force. Among other things, the new law would give law enforcement enhanced authority to access private data and require data to be stored servers located in China.

In a joint letter, the business groups said they are “deeply concerned that current and pending security-related rules will effectively erect trade barriers along national boundaries that effectively bar participation in your market and affect companies across industry sectors that rely on information technology goods and services to conduct business.”

The letter called on China to ensure that cybersecurity regulations comply with China’s World Trade Organization (WTO) commitments and encourage the adoption of international models that support China’s development as a global hub for technology and services.

USCIB in the News: Joint Letter Seeks Fair Play in India

Published on February 6, 2017

USCIB has recently been cited in two articles, the Economic Times India and the International Business Times India,  both of which featured a multi-industry letter that was sent to Congress regarding the United States’ role in ensuring fair play in India for American companies. USCIB joined a group of over twenty eminent American business organizations and industry groups, many of which are also USCIB members. The letter stated that “businesses in the U.S. continue to face an evolving array of tariff and non-tariff barriers, both longstanding and new, which impede businesses and manufactures in the United States from competing fairly in India and creating jobs here at home.”

The letter urges the U.S. government, including Congress, to use all available channels to ensure fair play and to support Indian efforts that align with U.S. goals. The letter emphasized the need to actively use existing as well as new platforms and tools to raise and resolve longstanding issues, including the U.S.-India Strategic and Commercial Dialogue, the U.S.-India Trade Policy Forum, and the WTO dispute settlement.

The letter is available here.

Business Urges Policymakers to Avoid Trade-Distorting Data Privacy Measures

Published on March 21, 2016

dataflows

Paris and New York, March 22, 2016 – Some 10.2 billion new connected devices are expected to come online over the next five years – nearly double the number in existence today. Many of these devices will transmit user data for processing across borders. But a proliferation of forced localization measures and other government policies to restrict cross-border data transfers threaten to choke off essential cross-border electronic commerce.

Businesses from across the developed world are urging policymakers to avoid imposing rules on data privacy and security that distort global trade. In a new paper, BIAC, the Business and Industry Advisory Committee to the OECD, points to the crucial role of cross-border data flows for the recovery and future of the global economy, and calls on the OECD and governments to develop policies and regulatory frameworks that address concerns for security and privacy in the least trade-distorting way.

“Governments must avoid restricting trade through data localization measures”, said Clifford Sosnow, chair of the BIAC Trade Committee and partner with the Canadian law firm Fasken Martineau LLP. “Considering the importance of this issue for competitive markets, this paper offers recommendations to address the impact of data localization and at the same time deal with privacy and security concerns.”

The BIAC paper had significant input from the U.S. private sector via BIAC’s American affiliate, the United States Council for International Business. The paper estimates that, if fully enacted, government forced localization measures currently in place, or under consideration, could reduce global trade by $93 billion annually.

BIAC recognizes the OECD’s unique capacity to gather and develop evidence on trade restrictive measures on data flows, and accordingly requests the OECD to:

  • highlight to governments the impact of data localization on trade and investment
  • raise awareness among all industries on the importance of data flows for business operations and participation in global trade
  • promote policies that enable open flow of data, to support the rapidly growing number of business models that rely on data flows.

BIAC will work with the OECD to promote best practices in the field of cross-border data flows and encourage governments to refrain from measures that compromise the benefits of open markets and investment for growth.

Read the BIAC policy paper.

US Coalition For TPP Statement Of Support

Published on January 7, 2016

Harbor_tradeToday the U.S. Coalition for TPP, of which USCIB is a leading member, issued the following statement in support of the Trans-Pacific Partnership (TPP):

“Since its inception, the U.S. Coalition for TPP has advocated for a Trans-Pacific Partnership (TPP) agreement that would increase U.S. export and economic opportunities, support American jobs, strengthen trade-enforcement tools, and advance security, stability, and prosperity throughout the Asia-Pacific region.

“The U.S. Coalition for TPP has considered the text and finds that it will advance U.S. global competitiveness in the region and set in place modernized rules for the benefit of many industries and their workers in the United States.

“A world with the Trans-Pacific Partnership will help expand the rule of law, transparency, and fairness in the region. It is an agreement that will serve to improve the lives of millions of people in the United States and its TPP partners. It will do so by encouraging competition and setting disciplines in government acts, policies, and practices among the 12 Pacific Rim members that will set an example to which other countries will aspire. As a leading force behind the TPP negotiation, the United States will have, once again, established its preeminent role as a world leader in promoting peace and a more secure future through prosperity that comes from a commitment to liberalized trade and investment.

“The U.S. Coalition for TPP supports the agreement as a significant step forward to a fairer and more-level economic playing field in the Pacific Rim. We also encourage the U.S. government to work with Congress and the 11 TPP partner countries to strengthen the agreement further, thereby expanding support for this important achievement.

“We encourage Congress to give the agreement timely consideration and ultimately support its passage.”

Below are nine specific TPP achievements that will create benefits for American workers, families, and businesses.

  • Reduction of discriminatory tariffs and non-tariff barriers throughout the region, including the total elimination of 100 percent of tariffs on qualifying industrial goods and textiles exports
  • Increase in market access for U.S. agriculture products, reduction of non-tariff barriers to agriculture trade, and expansion of sanitary and phytosanitary provisions
  • New, binding commitments in e-commerce that promote digital trade, spur innovation for new goods and services, and implement strong consumer protections
  • Stricter controls for state-owned enterprises (SOEs), including requirements that they make purchasing decisions based on quality and price, not favoritism
  • Strong enforcement mechanisms, including trade sanctions, that ensure TPP countries comply with the new standards established by TPP
  • New standards and a mechanism to promote good governance across the region by including anti-corruption rules, implementation of anti-bribery laws, and guarantees of due-process rights
  • Provisions to streamline and simplify the movement and release of goods across borders and provide much-needed business predictability on the treatment of goods at the border
  • Promotion of regulatory transparency and cooperation to help address barriers imposed by inconsistent regulatory regimes
  • A first-of-its-kind commitment to help small and medium-sized businesses obtain greater opportunities out of trade agreements

About The Coalition
The U.S. Coalition for TPP is a broad-based and cross-sectoral group of U.S. companies and associations representing the principal sectors of the U.S. economy including agriculture, manufacturing, information and communications technologies, merchandising, processing, publishing, retailing and services.

BIAC and B20 Turkey Call for Strengthening the Financing of SMEs in Global Value Chains

Published on June 18, 2015

SMEs“For SMEs to benefit more fully from global value chains, urgent actions are needed to improve the coordination of financial regulations, strengthen access to financing and skills, and maximize the sharing of information through digital platforms,” said Bernhard Welschke, BIAC secretary general, commenting today on the release of a BIAC-B20 Turkey special publication.

Faced with the slowest post-crisis global investment recovery since the early 1970s, there is a pressing need to unlock growth, investment and jobs. However, small- and medium-sized enterprises (SMEs) – which account for the majority of employment and over half of value-added in OECD countries – have struggled to access the financing they require to participate in and across world markets as banks have deleveraged to meet new regulatory requirements.

Conscious of the financing challenge, BIAC and B20 Turkey have released a publication halfway through the Turkish G20 Presidency entitled “Business Access to Global Value Chains and Financing SMEs.” Bringing together chapters written by prominent thinkers in government, academia, finance, and business, the publication seeks to pave the way for actions to support SMEs, in contribution to the G20 ahead of the Leaders’ Summit in November 2015.

“This BIAC-B20 Turkey publication underlines that SMEs can be best supported if all relevant actors in markets – public and private alike – undertake coordinated actions that support businesses in global value chains,” commented Rifat Hisarcıklıoğlu, B20 Turkey Chair. “Connecting the various B20 and G20 activities is central to this effort.”

Considering the outcomes from a BIAC-B20 Turkey conference held on June 4, 2015 at the OECD Headquarters in Paris, the final chapter of the publication presents three overarching recommendations to G20 Leaders:

  1. Focus on coordination, consultation and impact assessment
  2. Raise SME access to finance and skills through an integrated approach
  3. Maximize the sharing of information through digital platforms

“We encourage G20 Sherpas to use this publication as a key point of reference in preparing the G20 Leaders’ Summit Communiqué,” added Hisarcıklıoğlu.

Read the report.

USCIB Gives Feedback on OECD New Approach to Economic Challenges Project

Published on January 22, 2015
L-R: Rick Johnston (Citi), David Mallet (Wells Fargo), Tom Molitor (Wells Fargo), Mathilde Mesnard (OECD), Peter Robinson (USCIB) and William Hynes (OECD).
L-R: Rick Johnston (Citi), David Mallet (Wells Fargo), Tom Molitor (Wells Fargo), Mathilde Mesnard (OECD), Peter Robinson (USCIB) and William Hynes (OECD).

USCIB and member representatives met with officials from the Organization of Economic Cooperation and Development (OECD) on January 22 at USCIB’s New York office to give feedback on the OECD’s New Approach to Economic Challenges (NAEC), aimed at updating the organization’s instruments and policy analyses.

USCIB President and CEO Peter Robinson met with the main authors of the NAEC report, Mathilde Mesnard and William Hynes, along with member representatives from Citigroup, Wells Fargo and JPMorgan Chase.

The informal meeting gave USCIB an opportunity to provide member feedback and concerns at this stage of the NAEC project.

USCIB is the American affiliate of the Business and Industry Advisory Committee to the OECD (BIAC), which acts as the voice of business in the OECD and has provided structured input to the NAEC project.

The OECD’s final synthesis report on its NAEC work will be delivered to OECD ministers in June 2015.

 

Investment in Africa: A Positive Shift in US Policy

Published on August 14, 2014

By Shaun Donnelly

Recent White House and Cabinet-level speeches, press releases, and fact sheets, appear to show what may be a subtle shift in the Obama Administration’s high-level rhetoric on U.S. investment abroad, at least when it comes to investing in Africa. While the administration has become a strong advocate for inward Foreign Direct Investment (FDI), seeking foreign companies to invest in the U.S. economy, it has heretofore been noticeably hesitant to say anything positive about outbound investment by U.S. companies, at times promulgating the negative effects of outbound FDI on the U.S. economy by equating it to “outsourcing” and “exporting U.S. jobs.” But last week, in the context of the impressive U.S- Africa Leaders Summit, we’ve noticed some very positive language in support of investment in Africa, coming from the very top of the administration.

Senior U.S. officials have spoken loudly, explicitly, and very positively of international investment and have also enthusiastically endorsed broader terms like “partnerships,” “doing business,” “two-way trade,” and “building long-term business relationships,” reflecting a far broader policy approach than the exports-only approach we’ve seen earlier. Words matter; and these new words are very welcome.

The following pro-investment comments are a sample extracted from high-level speeches, statements, and fact sheets surrounding the U.S. Africa Leaders Summit:

President Obama arrives on stage at the U.S. Africa Leaders Summit. Official White House Photo by Pete Souza
President Obama arrives on stage at the U.S. Africa Leaders Summit. Official White House Photo by Pete Souza

President Barack Obama:

“… I’m proud that American exports to Africa have grown to record levels, supporting jobs in Africa and the United States, including a quarter of a million good American jobs.”

  • “Today, we’re announcing $7 billion in new financing to promote American exports to Africa. Earlier today, I signed an executive order to create a new President’s advisory council of business leaders to help make sure we’re doing everything we can to help you do business in Africa.”

“…[T]he United States is making a major long-term investment in Africa’s progress. And taken together, the new commitments I’ve described today –across our government and by our many partners – total some $33 billion. And that will support development across Africa and jobs here in the United States.

“…[O]ne of the things that I hope happens with U.S. companies is that they’re constantly looking for opportunities to partner with young entrepreneurs, startups, and not just always going to the same well-established businesses.”

State Department Image
State Department Image

Secretary of State John Kerry:

“[Secretary of Commerce Pritzker] … understands that the investments in Africa are a two-way street, and when we help nations stand on their own two feet, we create opportunity elsewhere in the world, and that everybody benefits as a result of that.” Full speech here.

“ … AGOA has made it possible for Ford Motor Company to export engines duty-free from South Africa, where Ford has invested over $300 million so they can supply engines worldwide. And the efficiencies of that operation have allowed Ford to create 800 new jobs at their Kansas City plant as part of the global production line… We want and we will work hard to get more American companies to invest in Africa. We also want more African companies to invest here in the United States, and there’s no reason that they shouldn’t. The fact is, today, Africa is increasingly a destination for American investment and tourism, and African institutions are increasingly leading efforts to solve African problems. All of this underscores that dramatic transformation is possible, and it’s possible in the next few years. Prosperity can actually replace poverty, and cooperation can actually triumph over conflict.” Full remarks here.

Department Of Commerce Photo
Department Of Commerce Photo

Secretary of Commerce Penny Pritzker:

“Today, on both sides of the Atlantic, there is a clear, mutual desire to deepen our ties of trade and investment – because doing so will spur growth across the United States and the countries of Africa.”

“Investing in Africa will create jobs in Charlotte, North Carolina, and expand the power supply in Ghana – because of the $175 million deal signed by SEWW Energy to upgrade Accra’s electricity grid… will support workers in California and strengthen the health of patients in Nigeria – because of the MOU signed by the Environmental Chemical Corporation to construct a state-of-the-art cancer institute in Ibadan… [and] will spur job growth in Cincinnati through P&G’s $300 million investment in a new manufacturing plant near Lagos – because when P&G expands in Nigeria and elsewhere, it supports thousands of jobs at home.”

The bottom line is that we at USCIB have seen a lot to like in the U.S. Africa Leaders Summit, and welcome the Administration’s comments on and commitment to promoting the comprehensive U.S.- African economic relationship, including but not limited to foreign investment flows in both directions. We specifically welcome the conceptual framework reflected in administration leaders’ comments throughout the conference that FDI in Africa by U.S. companies is an important part of the answer and is good for the U.S. economy, for U.S. competitiveness, growth and jobs. We are also encouraged that U.S. business leaders, including from several leading USCIB member companies, have been included so prominently in summit events. It is our hope that this fundamental pro-FDI sentiment will be reflected across the board in U.S. policies, programs and negotiations across Africa as well as around the world.

USCIB also welcomes the following new actions and expansions of existing efforts that support the president and secretaries’ words cited above:

  • The Doing Business in Africa Campaign
    • Through the Doing Business in Africa (DBIA) Campaign, the U.S. government is strengthening its commercial relationship with the continent of Africa, a diverse region that offers substantial trade and investment opportunities across national and regional market.
    • At the U.S.-Africa Business Forum, President Obama announced $7 billion in new financing to promote U.S. exports to and investments in Africa under the DBIA Campaign.
  • An Executive Order to Create a President’s Advisory Council on Doing Business in Africa
    • The Executive Order directs the Secretary of Commerce to establish a President’s Advisory Council on Doing Business in Africa comprised of 15 members from the private sector, including small business. The Advisory Council will provide information, analysis, and recommendations to the President through the Secretary of Commerce, including on developing strategies for creating jobs in the United States and Africa through trade and investment; developing strategies by which the U.S. private sector can identify and take advantage of trade and investment opportunities in Africa; and building lasting commercial partnerships between the U.S. and African private sectors.
  • New U.S. Government Resources to Support U.S. Exports and Investment in Africa Interagency Initiatives
    • Interagency Efforts
      • The Principals of the Export-Import Bank of the United States, the Millennium Challenge Corporation, the Overseas Private Investment Corporation, the U.S. Agency for International Development, and the U.S. Trade and Development Agency will mobilize private capital for Africa’s infrastructure through a series of at least three outcome-oriented roundtables in Africa that will advance project- and sector-specific investment opportunities and needed regulatory reforms. These agencies will implement the initiative in coordination with DBIA Campaign agencies, African governments, and the U.S. and African private sectors.
      • The U.S. Department of Commerce and USTDA launched the 20×20 Initiative to support a total of 20 trade and reverse trade missions by 2020, to promote U.S. industry engagement in Africa. Working with federal, state, and local government partners, these missions will foster U.S. business partnerships with key African stakeholders.
      • The Small Business Administration (SBA) and Ex-Im Bank will collectively support 50 DBIA Campaign-themed activities and outreach sessions over the next two years to facilitate U.S. trade finance, provide counseling and training on their programs, and conduct business development to support U.S. exporters, particularly small- and medium-sized enterprises
    • Overseas Private Investment Corporation
      • OPIC will commit up to $1 billion in financing and insurance support to catalyze private sector investments in Africa. This is in addition to OPIC’s existing $1.5 billion Power Africa commitment. OPIC reaffirmed its plan to place personnel on the ground in sub-Saharan Africa to help facilitate increased U.S. trade and investment and will support an investment mission to the region, with a focus on the power sector
    • United States Agency for International Development
      • USAID will upgrade its existing African Trade Hubs into “U.S.-African Trade and Investment Hubs” that will now create new opportunities for U.S. investment in and exports to Africa. These hubs are located in Accra, Ghana, Nairobi, Kenya, and Gaborone, Botswana, and cover the West Africa, East Africa, and Southern Africa regions, respectively.

Staff contacts: Shaun Donnelly and Eva Hampl

More on USCIB’s Trade and Investment Committee