USCIB Washington Update: September, October, November 2018

Highlighting Key Activities, September, October, November 2018

During the months of September, October, and November 2018, USCIB Staff met with Alan Wolff, WTO Deputy Director General, Andrew Haviland, Charge d’Affaires, U.S. Mission to the OECD Katherine Tai, House Ways and Means, Nasim Fussell, Senate Finance, Christina Kopitopolous, USTR, submitted significant comments for the National Trade Estimate/1377 Report and on China’s WTO Compliance, launched a new Anti-Illicit Trade Committee, weighed in on the proposed European Digital Services Tax across Europe, and much more. Below are summaries of these and other highlights from the activities of USCIB in Washington, D.C. over the last three months. If you have any questions or comments, or want more information on a specific topic, please contact any of the staff members listed at the end of this brief.

Table of Contents:

Trade and Investment – Opening Global Markets for Trade and Investment

ICT Policy – Promoting Sound Policies for New Technologies

Tax – Advancing Tax Policies that Promote U.S. Competitiveness

Customs and Trade Facilitation – Reducing Barriers and Costs from Customs and Border Control Practices

Anti-Illicit Trade – Promoting Strong International AIT Leadership and Advocating a Comprehensive and Multi-Disciplinary Approach to AIT

China – Supporting Policies and Relationships that Enhance U.S.-China Business

Competition – Creating Global Legal Practices for an Open and Competitive Business Environment

Membership

Upcoming Events

Staff List

Trade and Investment – Opening Global Markets for Trade and Investment

USCIB Trade and Investment Committee Meets with Katherine Tai, Ways & Means: At the September 13 meeting of the USCIB Trade and Investment Committee Katherine Tai, Chief Trade Counsel, Democratic Staff, House Committee on Ways and Means, provided an off-the-record overview of where things stand in the House on NAFTA, 232 tariffs, 301 tariffs and China trade issues more broadly, the WTO, and other potential trade agreements. The Committee was also joined by Nasim Fussell, Deputy Chief International Trade Counsel for the Senate Finance Committee. Nasim provided the Senate’s perspective on NAFTA negotiations timing, 232 and 301 tariff issues, the second phase of the MTB process, and the WTO. At the meeting, Rob Mulligan also began a discussion on the development of a USCIB Trade and Investment Agenda for 2019, as well as a draft paper on WTO reform.

WTO Deputy DG Alan Wolff Meets with USCIB Members: On October 19, 2018, Ambassador Alan Wolff, Deputy Director General of the WTO, met informally with USCIB member companies to review the full range of issues, developments and challenges around the World Trade Organization. Amb. Wolff, an active member of USCIB’s Trade and Investment Committee in his days as a leading Washington trade lawyer, was, as always insightful, relevant, and candid in his remarks. Issues discussed included WTO reform, China’s role in the WTO, the impact of US Government approaches to the WTO, and possibilities for negotiation breakthroughs.

USCIB Submits Comments on China 301 Tariffs and Testifies: On September 6, 2018, USCIB submitted extensive comments on the Trump administration’s proposed $200 billion list of tariffs on imports from China, following up on earlier submissions in response to the quickly escalating trade conflict between the United States and China. USCIB and its members continue to be very concerned about the potential unintended consequences these proposed tariffs of 10 or 25 percent on $200 billion worth of Chinese imports are likely to have, affecting many sectors vital to the U.S. economy and jobs. While China’s forced technology transfer requirements and other abusive practices harm U.S. competitiveness, the administration’s sweeping tariffs endanger the U.S. economy in similar ways. USCIB also signed on to a broader industry statement appealing to the Trump administration not to proceed with the proposed tariffs, saying the effort would likely backfire against U.S. businesses and workers. At the end of August, USCIB Senior Director for Investment, Trade and Financial Services Eva Hampl provided testimony to the 301 Committee chaired by the U.S. Trade Representative’s office, expressing member concerns.

Members Meet with Andrew Haviland, Charge d’Affaires, U.S. Mission to the OECD: On October 11, 2018, Andrew Haviland, Charge d’Affaire, U.S. Mission to the OECD, met with a large group of USCIB member representatives from various committees. Following an update on the OECD’s ongoing work and U.S. priorities from Mr. Haviland, members were able to ask questions regarding the positions and work of the U.S. Mission, as well as the role of Business at OECD when engaging with the OECD and other OECD members on business priorities.

USCIB Advocates for Digital Trade and Foreign Investment at OECD: USCIB Senior Director for Investment, Trade and Financial Services Eva Hampl was in Paris the week of October 22, 2018, participating in investment and trade related meetings at the OECD. On October 22, the OECD hosted its annual Global Forum on Trade, which focused on Trade in the Digital EraThe agenda included sessions on digital transformation and what it means for trade, measuring digital trade, digital trade and market openness, data flows, and discussing priorities for trade policy makers. Hampl participated in the event as a panelist in the session on data flows, which also included Deputy Assistant USTR for Telecommunications Policy Jonathan McHale. The following day Hampl has several speaking roles starting with the Business at OECD consultation with the OECD Investment Committee. Business at OECD had submitted three short papers covering issues such as investment policies related to national security, the importance of a well-designed investment protection mechanism and foreign direct investment qualities. Hampl also attended a joint meeting of the OECD Trade and Investment Committees, which included a presentation on the OECD Digital Services Trade Restrictiveness Index (STRI) by the OECD. At the consultation, Hampl made an official intervention on behalf of Business at OECD, expressing USCIB’s support of the joint meeting, and raising some of USCIB’s priority issues, including the multilateral trading system (WTO reform), state-owned enterprises, and digital trade. Additionally, Hampl served as a discussant on behalf of Business at OECD at a Policy Network Meeting on the Foreign Direct Investment (FDI) Qualities, during which she expressed general support for the project and underlined the importance of investment. Hampl also had the opportunity to underline the importance of an open investment environment and concern that recent trends of protectionist policies are harmful to business during her role as discussant in the First Roundtable on Investment and Sustainable Development.

Donnelly on Front Lines at UNCTAD Defending Pro-Investment Policies and ISDS: Shaun Donnelly was one of only three hearty business reps to spend part or all of the week of October 22-26, 2018, in Geneva at the World Investment Forum (WIF), hosted by the UN Conference on Trade and Development (UNCTAD. Shaun was the keynote speaker for business in the important High-Level Experts group meeting on International Investment Agreements (IIAs) where he forcefully defended strong investment agreements and Investor-State Dispute Settlement (ISDS) provisions. His remarks can be read here. He also was the single business panelist on a side event organized by the World Bank affiliate International center for Settlement of Investment Disputes (ICSID) on proposed reforms of ICSID’s rules and procedures. Shaun was also able to offer sharp question and criticisms of the EU’s much-ballyhooed Multilateral Investment Court proposal as a proposed but deeply flawed alternative to ISDS. Not clear how may converts Shaun might have made among developing country officials but he was able to give them some alternative perspectives on important and challenging investment policy issues. The UNCTAD Secretariat expressed great appreciation for USCIB attending and offering clear, candid business perspectives.

USCIB Consults with U.S. Investment Policy Leaders: Shaun Donnelly and Eva Hampl have stayed in close contact with key investment policy officials at State and USTR over the fall season. They met September 20 with Deputy Assistant USTR for Investment policy Lauren Mandell to NAFTA and Korea KORUS investment negotiations. Shaun and Eva met twice this fall with State department Office of Investment Affairs (“OIA” in State’s Economic and Business Bureau) leading up to and then following up afterwards on the mid October OECD investment Committee meetings as well as other international investment policy issues including the review of Investor-State Dispute Settlement (ISDS) provisions underway in the UN Commission on International Trae Law (UNCITRAL). Those senior investment policy officials have been consistently open to our views and questions.

USCIB Discusses Anti-Corruption Issues with State Department: On October 2, 2018, USCIB joined a group of business associations as well as the AFL-CIO and Coalition for Integrity in a meeting with Principal Deputy Assistant Secretary of State for Economic and Business Affairs Brian McFeeters to discuss our efforts in expanding the signatories to the OECD Anti-Bribery Convention to all G20 countries. The meeting was a follow up to a joint letter sent to president Trump in August, requesting that the Administration take major steps this year to combat international bribery and corruption. The message of the group was to underline the importance of the Convention, noting that it needed to be strengthened in two ways. First, though enforcement of the Convention in some countries has been gradually increasing, the overall level of enforcement is not uniform and is weaker than by the United States. Second, countries that have become major players in the international economy, notably China and India, are not signatories.

Hampl Discusses OECD Accession at PhRMA Meeting: On November 1, 2018, Eva Hampl, Senior Director, Investment, Trade and Financial Services, presented on OECD accession issues to a group of pharmaceutical companies and associations. Hampl highlighted USCIB’s advocacy role at the OECD as a member of Business at OECD, provided an update on the recently concluded accession process of Colombia, as well as on upcoming countries, which include Brazil, Argentina, Peru, Romania, Bulgaria, and Croatia. At this time, none of the six countries have officially been invited to begin the accession process, which will require the approval of 25 OECD Committees. USCIB has been actively involved in providing input into Colombia’s accession process via Business at OECD (BIAC), the official business voice at the OECD. Moving forward, USCIB will play an active role in providing U.S. business input to the OECD on any upcoming accession processes.

Donnelly Keynotes AmCham Annual Dinner in Vancouver: USCIB Vice President Shaun Donnelly was the keynote speaker at AmCham Canada /Pacific’s first-ever annual dinner in Vancouver October 16. Donnelly offered an inside-the-beltway business perspective on the long-running NAFTA modernization negotiations and the resultant new “U.S. /Mexico /Canada” agreement or USMCA. Canadian business leaders in the vibrant new Vancouver AmCham are generally supportive of NAFTA and hopeful about the new USMCA, though clearly worried about the “section 232” U.S. tariffs on Canadian steel and aluminum. Former Canadian Trade Minister Stockwell Day, now a leading Vancouver-based trade lawyer joined Shaun in a post dinner Q and A session to round out the evening. While in Vancouver, Shaun was also guest of honor at a reception hosted by the U.S. Consul General where he delivered an abbreviated, informal version of his NAFTA/USMCA comments.

USMCA Investment Provisions Under the Microscope at Sidley: Shaun Donnelly was the business speaker, joining senior Canadian and Mexican Government investment negotiators on an off-the-record panel co-hosted by USCIB member law firm Sidley Austin and the American Society of International Law (ASIL) on October 18. The panel “USMCA – What Does NAFTA 2.0 Mean for Investor Protection in North America and Beyond?” drew a full house of trade people, diplomats, and lawyers. Sidley Partner Marinn Carlson moderated the session and kept it moving with some very challenging questions. Shaun was candid in pointing out USCIB and more general business concerns with some of the changes in investment provisions from NAFTA to USMCA. The U.S. government declined invitations to participate.

 USCIB Talks Trade and Essential Security at Hudson Roundtable: Shaun Donnelly was an active participant in a very interesting Hudson Institute roundtable discussion November 28, focused on trade and national security, more specifically on the U.S. Government’s use of “Section 232” trade sanctions (thus far imposed on imported steel and aluminum but threats on imported autos are intensifying) based on threats to U.S. “essential security.” Senator (and former USTR where Shaun was a key Assistant) Rob Portman and EU Ambassador David O’Sullivan offered great keynote remarks. Shaun reflected USCIB’s strong positions on opposing any abuse (by the U.S. government or others) of these essential security provisions in the WTO, other agreements or in U.S. trade law. The group also discussed prospects for U.S.-EU trade agreement, perhaps limited to industrial good or perhaps much broader. Views on prospects for such agreements ranged widely around the table. Drawing on his experience as Assistant USTR for Europe under USTRs Portman and Schwab, Shaun was among the more cautious commentators on prospects for quick, easy U.S.-EU deals.

ICT Policy – Promoting Sound Policies for New Technologies

USCIB Members Engage U.S. Government Officials in Discussions about Policies Related to Artificial Intelligence, Privacy, Cybersecurity at the OECD, G20/B20, and ITU Plenipotentiary Meeting: The ICT Policy Committee Meeting on September 27 featured discussions with U.S. Government officials from the Departments of State, Commerce, and the White House Office of Science and Technology. The wide-ranging dialogue focused on policy priorities with respect to Artificial Intelligence (AI) in work underway at the OECD Committee on Digital Economy Policy as well as the horizontal OECD Going Digital Project. Members also discussed their inputs to the B20 Digital Economy and Industry 4.0 Task Force Report and how those would be reflected in the October 4-5 Summit in Buenos Aires, Argentina. Concerning the request for comments on Consumer Privacy Protections by the Commerce Department’s National Telecommunications and Information Administration (NTIA), members emphasized the importance of realizing greater interoperability in global privacy regulations. Finally, members discussed the importance of coordinating with Inter-American countries at the ITU Plenipotentiary, October 29-November 16 in Dubai, UAE on issues pertaining to governance of the ITU, Internet-related issues, and cybersecurity.

USCIB Catalogs 90 Pages of Foreign Trade Barriers for Annual National Trade Estimate/Section 1377 Report to USTR: On October 17, USCIB submitted comments concerning significant barriers to U.S. exports of goods, services, and U.S. foreign direct investment for inclusion in the annual National Trade Estimate (NTE) report. Pursuant to Section 1377 of the Omnibus Trade and Competitiveness Act of 1998 (19 U.S. C. Section 3106) and as requested by USTR’s Federal Register notice, we also included comments concerning the operation and effectiveness of U.S. telecommunications trade agreements. This 90-page catalog details foreign trade barriers to U.S. exports to the following countries: Argentina, Australia, Belarus, Brazil, Canada, Chile, China, Colombia, Costa Rica, Dominican Republic, Ecuador, Egypt, El Salvador, European Union, Fiji, France, Germany, Ghana, Greece, Gulf Cooperation Council, India, Indonesia, Israel, Japan, Kazakhstan, Kenya, Korea, Latin America Malaysia, Mexico, Middle East and North Africa, the Netherlands, New Zealand, Nigeria, Norway, Pakistan, Peru, Philippines, Russia, Singapore, South Africa, Sweden, Tanzania, Thailand, Tonga, Turkey, Uganda, the United Kingdom, Uruguay, and Vietnam.

USCIB Members Continue to Advocate for GDPR-Compliant Policy Framework and Data Access at ICANN 63: ICANN 63’s Annual General Meeting (AGM) wrapped up on October 25 in Barcelona, Spain. Barbara Wanner, USCIB Vice President for ICT Policy, and members from AT&T, Amazon, BT, Facebook, Google, Microsoft, The Walt Disney Company, Time Warner, Verisign, and Verizon joined some 3,000 stakeholders to address key issues in management of the domain name system. In particular, USCIB members actively contributed to work underway to develop a formal policy to ensure that ICANN and the industry of more than 1,000 generic top-level domain (gTLD) registries and registrars meet existing ICANN contractual requirements concerning the collection of registration data as well as comply with the EU General Data Protection Regulation (GDPR). ICANN’s proposed Draft Framework for a Possible Unified Access Model for Continued Access to Full WHOIS Data (UAM) also was in the spotlight. Under pressure from ICANN’s Business Constituency and Intellectual Property Constituency – both of which include USCIB members — governments, and other stakeholders, ICANN developed the UAM as a possible approach to enable third-party access to non-public WHOIS data for legitimate law enforcement, consumer protection, brand management, and intellectual property (IP) protection purposes. Wanner serves on the Business Constituency’s Executive Committee.

USCIB Urges the Administration to Pursue Greater Interoperability Among Global Privacy Regimes: On November 8, USCIB responded to a request for comments on Approaches to Consumer Privacy from the Commerce Departments National Telecommunication and Information Administration (NTIA). USCIB members supported the administration’s high-level goal to develop mechanisms that realize greater interoperability among international privacy regimes. Specifically, members applauded NTIA for recognizing the need to bridge regulatory differences so there is less fragmentation, data flows seamlessly, and the digital economy continues to evolve. In pursuing development of an interoperable approach, however, it is imperative that we realize an appropriate balance so that privacy frameworks promote consumer/user trust in data-driven technologies while at the same time enabling companies and organizations to use and transfer data in innovative ways that benefit society, USCIB members urged.

USCIB Members Push Back on Top-Down Cybersecurity-Related Regulation, Advocate a Risk-Based Approach in IGF Workshop: French President Emmanuel Macron opened the three-day IGF on November 12 at UNESCO, depicting a digital economy fraught with danger from cyber-attacks, the proliferation of hate speech, and anti-democratic forces. He urged development of a “better model” featuring regulation of the Internet and its actors. USCIB members pushed back on this top-down approach in a special security-focused workshop on November 14, “Approaches to a Wicked Problem: Stakeholders Promote Enhanced Cooperation and Collaborative, Risk-Based Frameworks of Regional and National Cybersecurity Initiatives,” co-organized by USCIB and Oxford Martin School. The overall aim of the workshop was to provide insights into how to build national and regional cybersecurity capacity that is risk-based to enable nimble responses to security challenges. USCIB members Claudia Selli (AT&T) served as moderator and Amanda Craig (Microsoft) contributed expert commentary, emphasizing that a risk-based, whole of government approach is most effective and necessary for development of a national cybersecurity strategy.

OECD’s CDEP Moves Going Digital Project Toward Completion, Advances AI Work: The November 14-16 meetings of the OECD’s Committee on Digital Economy Policy (CDEP) focused on advancing the OECD’s Going Digital project, showcasing the OECD’s analytical report on Artificial Intelligence as well as the work of a special AI Experts Group (AIGO), and featuring an intense and animated review of the Online Platforms Report and a Roundtable discussion on online platforms. Working under the aegis of Business at OECD (BIAC), USCIB members have been shaping development of the Going Digital Project for the past two years, offering insightful guidance on the project’s all-important Integrated Policy Framework. USCIB members from Facebook, Google, IBM, and Microsoft also are playing influential roles in the AI Experts Group to ensure that the group’s eventual policy recommendations align with USCIB members’ interests. The final outcomes of the Going Digital Project will be unveiled at a high-level summit on March 11-12, 2019 in Paris.

USCIB Members Uphold Multistakeholder Model for Internet Governance in Comments to UN High Level Panel on Digital Cooperation: At a time when the multistakeholder approach to Internet governance increasingly is under fire in some multilateral organizations, USCIB members underscored that the multistakeholder model continues to be the best method to enable whole-of-society/whole-of-government consideration of digital economy issues. This will continue to ensure that discussions are grounded in values of free speech and respect for human rights and the principles of transparency, accountability, and consensus will guide stakeholders, according to USCIB. On November 30, USCIB included these comments in its submission to the U.N. High-Level Panel on Digital Cooperation (HLPDC) aimed at informing the HLPDC’s deliberations. The HLPDC was established by the UN Secretary-General in July 2018 to advance proposals to strengthen cooperation in the digital realm and contribute to the broader global dialogue on how interdisciplinary and cooperative approaches can help ensure a safe and inclusive digital future.

Tax – Advancing Tax Policies that Promote U.S. Competitiveness

USCIB Continues Efforts to Oppose the Adoption of the Draft Directive on Digital Services Tax:  USCIB further engaged with the OECD and various European countries on the tax challenges of the digitalizing economy and the European Digital Services Tax. The OECD organized a “digital day” in Paris to further discuss business models and the direction of the OECD’s work on a long-term solution. Many USCIB members participated in this discussion. USCIB members have also met with this fall with a number of high-level European government officials to discuss the EU digital directives. These included meetings with Austria, Denmark, Finland, Ireland, Sweden, and the United Kingdom. We have also engaged with business representatives at our peer organizations in other countries. We are encouraging those organizations to continue to work with their governments to ensure continuing opposition to the DST. We have also had ongoing discussions with the U.S. Treasury and the Senate Joint Economic Committee, including participating in a panel organized by the JEC to brief Hill staff on the issues and concerns of U.S. business.

USCIB will be continuing to pursue opportunities to express our concerns and ensure that any changes to the standards applicable to taxation of the digitalized economy reflect the concerns of U.S. business. While many countries have objected to the draft directives and the EU requires unanimity to proceed, it is important that USCIB continue to make its case about the potential damage from these directives. The OECD is working on a long-term solution. Many countries expressed a willingness to work within the OECD to achieve a long-term solution. USCIB also supports a consensus approach and believes that the OECD is the best place for working on such a consensus. The EU will be holding an Ecofin meeting on December 4th to consider this issue again (agreement was not reached at the Ecofin meeting held on November 6th). If agreement is not reached on December 4th, that will likely give the OECD some space to work on a long-term solution, since agreement on the EU directive is less likely in 2019 for a variety of political reasons.

USCIB Submits Comment Letters to Regulators: The Tax Committee dedicated significant resources to providing comments on a variety of topics. (See the recent accomplishments section of the USCIB Tax Committee page.) These comments included letters on: proposed regulations concerning the repatriation tax under section 965; proposed regulations concerning Global Intangible Low-Taxed Income under section 951A; the Platform for Collaboration on Tax’s toolkit on Offshore Indirect Transfers; and the OECD’s consultation on Financial Transactions.

USCIB Participates as an Observer in the UN’s Committee of Tax Experts: The UN Committee of Tax Experts held its seventeenth session in Geneva from October 16th through the 19th. The agenda covered updates to the UN Manual on Transfer Pricing; updates to the UN Model Income Tax Treaty (including, the taxation of software royalties, and the taxation of CIVs); development of a handbook on dispute avoidance and resolution; environmental tax issues; updates to the Extractives Handbook; the tax consequences of the digitalizing economy; updates to the manual on treaty negotiation; capacity building; and the taxation of development projects. The background papers presented and discussed at the meeting are here. USCIB is providing input on areas of interest to the USCIB Tax Committee including: the taxation of the digitalizing economy, the taxation of software royalties and taxation of carbon.

Customs and Trade Facilitation – Reducing Barriers and Costs from Customs and Border Control Practices

USCIB Customs E-Commerce Sub-Committee Meets for First Time: On Thursday, October 18, 2018, members of the USCIB Customs and Trade Facilitation Committee met under the auspices of a new, USCIB Customs E-Commerce Sub-Committee. The Sub-Committee will focus on customs related e-commerce issues and serve as a way to screen and discuss e-commerce issues informally before bringing problems and recommendations to the broader Customs and Trade Facilitation Committee. If you are interested in participating in this group, please let Megan Giblin know at mgiblin@uscib.org.

Customs Committee Meets with Christina Kopitopolous, USTR, Ken Kennedy, DHS ICE: On Wednesday, November 28, 2018, the USCIB Customs and Trade Facilitation Committee received an update on Forced Labor issues from Ken Kennedy, Senior Policy Advisor for Forced Labor Programs at the U.S. Department of Homeland Security Immigration & Customs Enforcement. Following this discussion, the Committee heard from Christina Kopitoplolous, USTR Director for Customs and Trade Affairs. Christina provided her assessment of customs issues at the WCO, WTO, and domestically.

Anti-Illicit Trade – Promoting Strong International AIT Leadership and Advocating a Comprehensive and Multi-Disciplinary Approach to AIT


USCIB Launches Anti-Illicit Trade Committee, David Luna as Chair: On Tuesday, September 11, USCIB held the inaugural meeting of its new Anti-Illicit Trade Committee, chaired by David Luna of Luna Global Networks & Convergence Strategies, LLC. In addition to laying out the committee’s goals and the beginnings of a Plan of Action, the committee heard the latest on Anti-Illicit Trade work at the OECD from the OECD’s Stephanie Jacobzone, Jack Radisch, and Piotr Stryszowski. The Committee met again on Thursday, November 29. At the November meeting, members heard from Christa Brzozowski, DHS Deputy Assistant Secretary, Trade and Transport, for an update on Anti-Illicit Trade work at the OECD. Following this briefing, members heard from Steven Shapiro, FBI Unit Chief, Criminal Investigative Division, Intellectual Property Rights Unit, National Intellectual Property Rights Coordination Center. Steven provided an overview of his team’s work at the IPR Center and expressed his interest in additional engagement with the USCIB Anti-Illicit Trade Committee.

China – Supporting Policies and Relationships that Enhance U.S.-China Business

USCIB Submits Comments on China’s WTO Commitments and Testifies: As part of the annual request by the U.S. Trade Representative for comments on China’s compliance with World Trade Organization (WTO) commitments and notice of public hearing, USCIB submitted commentson September 21 reflecting USCIB members’ feedback and concerns. USCIB’s submission highlights concerns that arise in selected horizontal areas that transcend industry sectors, including IT security measures, China’s antimonopoly law, intellectual property rights, market access, national treatment and non-discrimination, the regulatory environment, standards, state-owned enterprises, customs and trade facilitation, taxation, labor laws, certification, licensing, and testing barriers. USCIB’s submission also addresses issues related to specific industry sectors that face problems in China, including agricultural biotechnology, audiovisual, chemicals, electronic payment access, express delivery services, recoverable materials, software, and telecommunications. Following USCIB’s submission, USCIB Senior Director for Investment, Trade and Financial Services Eva Hampl provided testimony on October 3 to the interagency Trade Policy Staff Committee (TPSC).

USCIB Meets with DOJ and FTC to Discuss China AML Issues: In a follow up to USCIB’s submission on China’s compliance with WTO Commitments, USCIB on November 19 met with officials from the U.S. Department of Justice (DOJ) as well as the U.S. Federal Trade Commission (FTC) to discuss current issues business faces in China in relation to the application of China’s anti-monopoly law (AML). As noted in USCIB’s public comments, Chinese antitrust enforcement authorities continue to use of the AML as a tool to advance industrial policy goals rather than to protect competition. U.S. companies have repeatedly experienced Chinese regulators using AML enforcement absent sufficient economic proof of market power or anti-competitive harm or any transparency regarding analyses that may have been conducted. In addition, anecdotal evidence indicates that the AML enforcement agencies often disregard basic norms of fairness, due process, and transparency.

Competition – Creating Global Legal Practices for an Open and Competitive Business Environment

 USCIB Holds Joint ICC/USCIB Meeting on Global Competition Policy in NY: On September 5, against the backdrop of fast-changing business and policy practices with respect to antitrust and consumer protection, the USCIB Competition Committee held a joint meeting with the International Chamber of Commerce (ICC) Competition Commission in New York. Participants in the joint ICC/USCIB meeting represented many jurisdictions, including Brazil, France, Germany, Mexico, Poland, the United Kingdom and the United States. The keynote speaker was Bruce Hoffman, director of the Bureau of Competition at the U.S. Federal Trade Commission (FTC). Hoffman discussed the latest developments of antitrust policy with USCIB members, including for competition policy litigation and enforcement in the U.S., as well as FTC hearings on the state of competition law and policy that began in Washington, D.C. in September. USCIB Competition Committee Chair Dina Kallay (Ericsson) and USCIB Competition Committee Vice Chair Jennifer Patterson(Arnold & Porter) led participants through an agenda that included updates on issues including mergers, due process, cartels, the International Competition Network (ICN), and the Multilateral Framework on Procedures, on which USCIB and ICC recently submitted a joint statement.

Membership

  • Membership Meetings: The USCIB membership department and policy staff traveled to the Bay Area to meet with representatives from member companies Visa, Uber, Salesforce, Oracle, Intel and Ripple Labs to develop our understanding of their policy priorities for the next year and beyond, and to see how USCIB can better serve their policy needs. In addition, the USCIB membership department and USCIB President and CEO Peter Robinson met with representatives from member companies Citigroup, Hanesbrands, General Mills, Koch Industries, AT&T and DIAGEO.
  • New Members: USCIB has recently welcomed Astellas, Cruise Automation and Steptoe & Johnson LLP as new members.

Upcoming Events:

    • UNFCCC COP24, Katowice, Poland – December 3-14
    • USCIB Trade and Investment Committee Meeting, Washington, D.C. – December 4
    • 2018 USCIB International Leadership Award Dinner, New York – December 11
    • USCIB ICT Policy Committee Meeting, Washington, D.C. – December 13
    • USCIB Environment Committee and International Product Policy (IPP) Working Group Joint Meeting, New York – December 19
    • ACEP Som-1, Santiago, Chile – February 23 – March 8
    • 4th UN Environment Assembly (UNEA4), Nairobi, Kenya – March 11-15
    • Going Digital: OECD Insights for a Changing World, Washington, D.C. – March 29
    • APEC SOM 2, Vaplaraiso, Chile – May 6-18
    • ECOSOC 2019 Session, Geneva, Switzerland – May 29 – 31
    • OECD/BIAC/USCIB Tax Conference, Washington, D.C. – June 3-4

USCIB Policy and Program Staff

 

USCIB Policy and Program Staff

Rob Mulligan
Senior Vice President, Policy and Government Affairs
202-682-7375 or rmulligan@uscib.org

Erin Breitenbucher
Senior Policy and Program Associate and Office Manager, Washington
202-682-7465 or ebreitenbucher@uscib.org

Norine Kennedy
Vice President, Strategic International Engagement, Energy and Environment
212-703-5052 or nkennedy@uscib.org

Shaun Donnelly
Vice President, Investment and Financial Services
202-682-1221 or sdonnelly@uscib.org

Megan Giblin
Director, Customs and Trade Facilitation
202-371-9235 or mgiblin@uscib.org

Carol Doran Klein
Vice President and International Tax Counsel
202-682-7376 or cdklein@uscib.org

Ronnie Goldberg
Senior Counsel
212-703-5057 or rgoldberg@uscib.org

Mia Lauter
Policy and Program Associate, New York
212-703-5082 or mlauter@uscib.org

Eva Hampl
Senior Director, Investment, Trade and Financial Services
202-682-0051 or ehampl@uscib.org

Mike Michener
Vice President, Product Policy and Innovation
202-617-3159 or mmichener

Alison Hoiem
Senior Director, Member Services
202-682-1291 or ahoiem@uscib.org

Chris Olsen
Policy and Program Associate, Washington
202-617-3156 or colsen@uscib.org

Gabriella Rigg Herzog
Vice President, Corporate Responsibility and Labor Affairs
212-703-5056 or gherzog@uscib.org

Barbara Wanner
Vice President, ICT Policy
202-617-3155 or bwanner@uscib.org

Jonathan Huneke
Vice President, Communications and Public Affairs
212-703-5043 or jhuneke@uscib.org

Kira Yevtukhova
Communications Manager
202-617-3160 or kyevtukhova@uscib.org

Top

Hampl Voices China Concerns in Public Testimony

USCIB Senior Director for Investment, Trade and Financial Services Eva Hampl provided testimony on October 3 to the interagency Trade Policy Staff Committee.
Hampl took the opportunity to speak about China 301 tariffs, noting how disruptive they are to U.S. business.

Following USCIB’s submission to the annual request by USTR for comments on China’s compliance with WTO commitments and notice of public hearing, USCIB Senior Director for Investment, Trade and Financial Services Eva Hampl provided testimony on October 3 to the interagency Trade Policy Staff Committee (TPSC).

The interagency panel was chaired by USTR and included officials from the Departments of Commerce, Treasury, State, Agriculture and Labor. The questions from the panel addressed the cybersecurity law, addressing ICT products and services as well as data flow restrictions, state-owned enterprises (SOEs), anti-monopoly law (AML) enforcement, trade secrets, agricultural biotechnology, and the import ban on recyclable materials.

“USCIB has consistently identified a number of key areas of concern, including market access, standards, transparency, subsidies, competition policy, technology transfer, and national and economic security issues,” noted Hampl during her testimony. “While small steps are occasionally made in a market opening direction, overall China appears to be ramping up its protectionism. These issues affect many U.S. sectors, including agricultural biotechnology, audiovisual, chemicals, electronic payment services, express delivery services, recoverable materials, software, and telecommunications.”

Hampl also took the opportunity to speak about the China 301 tariffs noting how disruptive they are to U.S. business. “Extensive tariff actions do not show any indication that they will in fact resolve the underlying issues and change China’s behavior regarding intellectual property theft and forced technology transfer,” warned Hampl. “In addition, as our submission lays out, there are many more issues beyond those that need to be addressed. Accordingly, high-level dialogues between the United States and China continue to be of the utmost importance.”

USCIB also submitted extensive written comments.

International Business Magazine: Fall/Summer 2018

The Summer/Fall 2018 issue of USCIB’s quarterly International Business magazine is available here. The issue features a timely column by USCIB President and CEO Peter Robinson titled, “The Myth of Private-Sector ‘Conflict of Interest’ at the UN. The issue also features news stories on how tariffs harm companies and consumers, tax reform impacts, and reinforcing US-China tie, plus news from our global network–Business at OECD, the International Organization of Employers and the International Chamber of Commerce.

“International Business,” USCIB’s quarterly journal, provides essential insight into major trade and investment topics, a high-level overview of USCIB policy advocacy and services, USCIB member news and updates from our global business network.

Subscribe to USCIB’s International Business Magazine

Subscriptions to “International Business” are available free upon request to representatives of USCIB member organizations. Contact us to subscribe.

Non-members may subscribe to “International Business” and other USCIB print publications at an annual rate of $50 (U.S.) for domestic delivery, or $75 for overseas delivery. Contact us to subscribe. USCIB’s annual report, studies from the United States Council Foundation and related publications are included with your paid subscription.

Our free electronic newsletter, “International Business Weekly,” provides regular updates on USCIB’s major activities and priorities. Click here to view a sample issue. Click here to subscribe.

We welcome outside submissions and inquiries regarding our publications – send them to news@uscib.org.

We welcome advertising in International Business magazine — special discounted rates for USCIB member organizations! Contact Kira Yevtukhova (kyevtukhova@uscib.org) for more information.

 

Hampl Urges USTR to Remove Products from China Tariff List

Hampl expressed concern about consequences proposed tariffs are likely to have on sectors vital to the U.S. economy and jobs
The Administration is also considering increasing tariffs to 25 percent.

 

With a new set of proposed tariffs on $200 billion worth of Chinese imports, USCIB has been actively advocating on the effect these tariffs will have on the competitiveness of U.S. companies. USCIB Senior Director for Investment, Trade and Financial Services Eva Hampl provided testimony to the 301 Committee chaired by the Office of the U.S. Trade Representative (USTR) on August 20, expressing concern about the potential unintended consequences these proposed tariffs of 10 percent are likely to have, affecting many sectors vital to the U.S. economy and jobs. The Administration is also considering increasing tariffs to 25 percent.

“If the USTR follows through on the President’s request to increase the level of the proposed tariffs to 25 percent on this broad list of products, the impact to U.S. competitiveness will be severe,” warned Hampl in her testimony. “USCIB strongly urges the Administration to consider the significant negative consequences to U.S. companies and American jobs before taking further action.”

Products that USCIB requested to be removed from the list of goods affected include parts in U.S.-made wind turbines, smart technology, goods using Bluetooth technology, standalone desktop computers, bicycles, patio furniture, electric lamps, travel goods, handbags, and many others. USCIB will submit written comments to USTR with further details on all the products that should be excluded.

“Many of the goods included in this new list are innovative products where the U.S. is an industry leader,” added Hampl. “Particularly for goods that are at the cutting edge of innovation and the future global economy, it is imperative for U.S. companies to remain highly competitive and innovative. Sweeping non-discriminatory tariffs will be very damaging, particularly if they are raised to 25 percent.”

With yet a new set of tariffs on China going into effect on August 23 on $16 billion worth of Chinese imports, USCIB has also been actively advocating that the U.S. Trade Representative’s (USTR) Section 301 exclusion process will remedy some of the potential negative consequences.

 

USCIB Warns More Tariffs Will Harm US Companies, Consumers

In the continuing battle of tit-for-tat tariffs between the United States and China, USCIB submitted comments to the U.S. Trade Representative (USTR) on July 23 regarding the proposed 25 percent tariffs on $16 billion worth of Chinese imports. This list of goods followed the first consultation on proposed 25% tariffs on $50 billion worth of Chinese imports, which resulted in the imposition of tariffs on $34 billion on July 6, 2018.

“Tariffs are a blunt tool with many unintended consequences on U.S. businesses,” said Eva Hampl who leads USCIB’s work on China. “They will significantly impact U.S. companies’ ability to export and create important jobs in the United States. They will also negatively impact U.S. customers, increasing competitiveness in the United States for foreign competitors. The Administration’s proposed tariff list was drawn up without significant input from the U.S. business or manufacturing community. The public comment process is the principal means to solicit information from U.S. businesses. Therefore, the Administration must use this process to ensure that its actions in this China 301 process do not inadvertently harm some of the most competitive sectors of the U.S. economy, and the hundreds of thousands of American jobs that depend on them. Tariffs should only be used as leverage toward a negotiated outcome and should not be imposed while negotiations are ongoing.”

USCIB’s comments also applauded the Administration for looking at alternative approaches, such as initiating a World Trade Organization (WTO) dispute by requesting consultations with the Chinese government regarding certain specific aspects of China’s technology regulations considered in the investigation. “In addition to engaging the WTO process, this should include developing a strategy with clearly defined objectives, direct negotiating mechanism with the Chinese, targeted deliverables, and deadlines with measurable results,” added Hampl. “The Administration should also coordinate in various available forums with like-minded trading partners who are similarly afflicted by China’s actions on intellectual property rights, forced technology transfer, and discriminatory industrial policies.”

USCIB’s comments to USTR were supplemented by a separate multi-association letter on $16 billion worth of tariffs. USCIB will also put together comments on the $200 billion list of proposed additional 10% tariffs on Chinese imports.

In BBC Interview, Mulligan Shares Thoughts on G20 Meeting

Rob Mulligan, USCIB

G20 Finance Ministers gathered in Argentina over the weekend to raise concerns over growing tensions between the United States and its major trading partners. Following the meetings, BBC’s Aaron Heslehurst spoke with USCIB Senior Vice President for Policy and Government Affairs Rob Mulligan as part of BBC’s Talking Business segment regarding international trade tensions that may undermine the global economy and stunt growth.

Mulligan expressed concern that continued escalation of tariffs may cause all kinds of problems for USCIB member companies. “Tariffs will lead to higher costs, drive higher prices for consumers and, we think, in the end, can start driving job losses,” warned Mulligan. “In fact, we’ve seen estimates for the existing tariffs related to steel and aluminum that can cause job losses in the United States of up to 140,000 jobs.”

Specifically, on U.S.-China tensions, Mulligan noted, “there are issues with China’s unfair trade practices that need to be addressed and we fully support an effort that would bring together all our allies to make that point with China, but we’re not sure that raising tariffs the way the President has threatened, even threating to impose tariffs on all 500 million of China’s exports to the United States, is going to be the way to solve that problem.”

To hear the entire interview, click here.

USCIB: De-Escalate US-China Trade Conflict Now

Washington, D.C., July 6, 2018 – Responding to the latest round of tit-for-tat tariffs from the United States and China, the United States Council for International Business (USCIB), which represents America’s most competitive global companies, reiterated its call for the two countries to back away from an all-out trade war, urging them to take immediate steps to mediate the conflict through the World Trade Organization.

“Our members are already feeling the impact of earlier tariffs, in the form of rising costs and operational disruptions, and these latest moves will only make matters worse,” said USCIB President and CEO Peter M. Robinson. “We can expect further damage to the U.S. economy, workers, companies and consumers.

“While we appreciate the goal of the Trump administration to force the Chinese side to make concessions on its poor treatment of U.S. companies, we believe these tariffs will not have the desired effect. Rather, they will negatively impact the American economy and workforce, even if they are maintained for just a short time.”

Robinson continued: “The American business community is united in its belief that joint action, not unilateral escalation, is the best path to address important structural problems with China’s unfair trading behavior. We should be working with our allies, including via the WTO, to apply pressure on China in ways that do not unnecessarily harm U.S. farmers, workers, consumers and companies.

“USCIB calls upon the U.S. government, its allies and the Chinese government to develop a workable, measurable action plan for eliminating the trade barriers China has erected. This plan should contain benchmarks that are tied to penalties if China doesn’t stick to the agreement, but penalties that encourage China to do the right thing without burdening American businesses, workers and consumers in the process.”

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, generating $5 trillion in annual revenues and employing over 11 million people worldwide. 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. More information is available at www.uscib.org.

Contact:
Jonathan Huneke, USCIB
jhuneke@uscib.org, +1 212.703.5043

ICC’s Denton on Preserving the Rules-Based Trading System

ICC Secretary General John Denton published a letter in Financial Times last week titled, “The Rules-based Trading System is Worth Preserving.”

The letter comes in light of the Trump administration’s decision to impose steel and aluminum tariffs on its trading partners.

“As the prospect of a ‘trade war’ gradually escalates, we must all bear in mind what is currently at stake in broader systemic terms,” writes Denton. “The rules-based multilateral trading system has fuelled seven decades of unprecedented job creation and poverty alleviation. Communities connected by commerce have a common interest in maintaining peace. The World Trade Organization has proved itself the linchpin of what is — by any objective measure — a more prosperous world order. And with the right reforms it can do more to help families and workers the world over.”

The full letter can be viewed on FT’s website, subscription required.

USCIB Expresses Concern Over China 301 Tariffs

In light of last week’s release of two lists of China 301 tariffs by the Trump administration, USCIB Senior Director for Trade, Financial Services and Investment Eva Hampl expressed concern about the impact the China 301 tariffs will have on the U.S. economy and jobs. “In our submission to the U.S. government we highlighted a number of products of particular concern to our members, for which tariffs would have a significant effect on U.S. production and revenue. Unfortunately it appears that only a handful of consumer products were taken off the list. We are also reviewing the new list of products, and welcome the opportunity to provide input as appropriate. We are, however, troubled by the planned investment restrictions to be imposed on Chinese investments in technology later this month, where stakeholder input is not taken into account. Given the significant impact investment restrictions could have on U.S. companies and jobs, this move by the Administration is problematic.”

The first list of China 301 tariffs was a reduced version of the 1,300 tariff lines USCIB commented on in May. This list of tariffs on about $34 billion of Chinese products is set to go into effect on July 6. The second list, covering about $16 billion of Chinese goods, are products that were suggested to be added. That list will be up for a comment period, with a public hearing to be held in late July. The Federal Register Notice is not yet officially out.

“China is ready to retaliate,” warned Hampl. China has apparently reduced their initial $50 billion list to $34 billion to match what is currently the U.S. tariff list – the Ministry of Finance has apparently posted the list.

Hampl was also quoted earlier today in Politico. Full article is available here, subscription required.

Washington Update, April – May 2018

Highlighting Key Activities, April – May 2018

During the months of April and May 2018, USCIB Staff met with EU Finance Ministries on draft digital tax directives, participated in a roundtable with OECD Trade staff on digital trade, testified before USTR’s Section 301 Committee, advocated for business as Colombia acceded to the OECD, spoke on NAFTA at the NGA North American Summit, filed comments to the ITC on foreign measures affecting B2B and B2C products and services, met with Kenneth J F Kennedy, DHS, on Forced Labor issues, briefed Tim Skud, Treasury, and Mark McKenzie, DHS, on E-Commerce at the WCO, met with Hill staff Hill on CFIUS reform, and much more. Below are summaries of these and other highlights from the activities of USCIB in Washington, D.C. over the last two months. If you have any questions or comments, or want more information on a specific topic, please contact any of the staff members listed at the end of this brief.

Table of Contents:

  1. Trade and Investment – Opening Global Markets for Trade and Investment
  2. ICT Policy – Promoting Sound Policies for New Technologies
  3. Tax – Advancing Tax Policies that Promote U.S. Competitiveness
  4. Customs and Trade Facilitation – Reducing Barriers and Costs from Customs and Border Control Practices
  5. China – Supporting Policies and Relationships that Enhance U.S.-China Business
  6. Corporate Responsibility and Labor Affairs – Shaping the Development of CR Principles and Increasing Awareness of Business’s Positive Social Contributions
  7. Creating Global Legal Practices for an Open and Competitive Business Environment
  8. Membership
  9. Upcoming Events
  10. Staff List

Trade and Investment – Opening Global Markets for Trade and Investment

Mulligan Shares USCIB Views at B20/BIAC/OECD/ICC Meetings:  Several meetings took place in Paris the week of May 28 at which Rob Mulligan, USCIB Senior Vice President Policy and Government Affairs, presented member views, starting with the B20 Trade and Investment Taskforce.  He made the point that the trade paper language related to digital trade, especially on IP, should be consistent with language developed by the Digital taskforce.  Since several companies working in the Digital taskforce had developed compromise language on IP, he urged the Trade taskforce to also use that language.  The BIAC General Assembly followed the B20 meeting where Rick Johnston, Citi, was approved for another term on the BIAC Board and they announced the new Secretary General, Russell Mills.  In a meeting with Ken Ash, Director of the OECD Trade Directorate, Rob discussed upcoming OECD work on tariffs, market opening, trade facilitation, non-tariff barriers and services reform.  At the meeting of the ICC Trade and Investment Commission on May 30, Rob provided input on proposed ICC work on unilateral protection measures, the impact of extraterritorial application of national laws, and the intersection of trade and climate change.

USCIB Kicks Off BIAC Roundtable with OECD Trade Staff on Digital Trade:  As part of the BIAC Trade Committee meeting on April 23, 2018, a roundtable discussion was organized with Ken Ash, Director of the OECD Trade Directorate, and his staff on digital trade.  Rob Mulligan started the discussion by highlighting the importance of cross border data flows to business and the negative impact of data localization requirements. He stressed the need for regulators to take approaches that do not end up restricting trade, stifling innovation, and undercutting economic growth.  The OECD staff noted some of the issues they are trying to resolve in their work on digital trade including: the challenges for business in distinguishing personal data from non-personal data; the costs of technological solutions such as encryption; differences of views based on cultural beliefs; and, is there a role for multilateral approaches.  BIAC will continue this dialogue as the OECD trade staff develops its digital trade papers.

USCIB/BIAC Urge OECD Trade Committee to Include Business Priorities in Future Workplan:  Rob Mulligan represented USCIB at the BIAC and OECD Trade Committees in Paris from April 23-25.  The BIAC meeting focused on providing input into the discussions the OECD Trade Committee was having on it Program of Work and Budget (PWB) for 2019-2020.  BIAC supported plans to work on digital trade, customs facilitation, international regulatory cooperation, trade in services and trade and environment.  We noted that the PWB should continue to include work on localization requirements and state-owned enterprises that are still key areas of concern for our members. BIAC also arranged for a lunch meeting with Deputy Secretary General Kiviniemi, which provided a chance for members to hear her thinking on the current global trade environment.  They also organized a dinner with Ana Novik, Head of the OECD Investment Division, John Drummond, Head of the OECD Services Trade Division, and Dermot Nolan, Permanent Representative of Ireland to the OECD.  This provided an opportunity to discuss how they will structure the planned joint committee meeting in October between the trade and investment committees and for us to share suggestions.

USCIB Pushes for Open Investment Climate in CFIUS process: USCIB has been an active advocate on investment issues in the context of the CFIUS legislation on the Hill. On April 19, 2018, Shaun Donnelly, Vice President, Investment and Financial Services, and Eva Hampl, Senior Director, Investment, Trade and Financial Services, met with Hill staff to discuss the Cornyn bill. On April 30, 2018, Donnelly and Hampl joined a group of associations in a meeting with Treasury and Commerce officials for an update on what at the time was the most recent draft of the legislation. USCIB hosted a member meeting on May 8, 2018, to discuss ongoing developments and next steps. Finally, on May 21, 2018, USCIB signed on to a multi-association letter to the House and Senate in support of the most recent updates of the legislation, which importantly no longer included provisions to expand CFIUS jurisdiction to cover outbound investment.

USCIB Pens Multi-Association Letter to Treasury on Investment 301: On April 26, 2018, USCIB, together with the Coalition of Services Industries (CSI) and the National Foreign Trade Council (NFTC) hosted a strategy meeting to share intelligence and discuss potential action items on investment issues related to the Administration’s Special 301 investigation. On May 18, 2018, USCIB, together with five other associations, sent a letter to Secretary Mnuchin asking for a more open and consultative process regarding the Administration’s investment restrictions contemplated under Section 301, pursuant to the March 22 presidential memorandum. The letter was sent in anticipation of a report coming out from Treasury no later than May 21, 2018, on the progress in developing measures to address concerns about investment in the U.S directed or facilitated by China in industries or technologies deemed important to the U.S.

Hampl Discusses NAFTA in Politico Roundtable: On April 18, 2018, Eva Hampl, participated in a roundtable conversation hosted by Politico, to discuss NAFTA. The off-the-record discussion addressed what the renegotiated chapters looked like at that time, the major sticking points that remain, and what potential solutions may be. USCIB has been actively advocating for members on NAFTA, traveling to rounds in Canada and Mexico earlier this year, and participating in the Coalition here in D.C., including advocating on the Hill. In support of an open conversation on trade, USCIB co-sponsored a reception on May 17 for Hill staff centered around the China 301 hearing that took place that week, as well as the ongoing NAFTA negotiations, celebrating Great American Jobs Supported by Trade. Representatives from U.S. government, companies, and associations spent the evening discussing various important developments in the trade space.

USCIB Advocates for Business as Colombia Concludes OECD Accession Process in May: Following the conclusion of an accession process that started in 2013, Colombia joined the OECD this month. On May 30, Colombian President Juan Manuel Santos and OECD Secretary General Angel Gurria signed an accession agreement at the annual ministerial-level council meeting. USCIB, which serves as the U.S. affiliate of Business at OECD, the representative private-sector voice in the OECD, has advocated on behalf of U.S. business throughout this process. Leading up to this conclusion, USCIB joined a meeting with other associations and companies at the White House to discuss Colombia, as well as with USTR, following the most recent meeting of the OECD Trade Committee in April. USCIB welcomes the progress Colombia has made over the past several years in the context of the accession process to the OECD, and we look forward to continued progress and concrete actions being taken on outstanding issues, including on pharmaceuticals and trucking, where the current status does not yet rise to the level of like-mindedness with other OECD countries on open trade and investment. As the OECD considers inviting additional countries to join, USCIB will continue to advocate on behalf of U.S. business to ensure that all OECD countries continue to meet high standards.

Donnelly Defends Business Positions at UNCITRAL Review of ISDS Procedures: USCIB Vice President Shaun Donnelly was the leading advocate for business positions and priorities at a weeklong review of Investor-State Dispute Settlement (ISDS) provisions to enforce international investment agreements held at the UN in New York April 23-27 under the auspices of “Working Group 3” of the UN Commission on International Trade Law (UNCITRAL). ISDS and investment arbitration are under assault from a coalition of developing countries, NGOs, some international organizations and the European Union. The EU is aggressively pushing its “Multilateral Investment Court” proposal as the solution to alleged problems in the long-established ISDS system to afford an independent body to address serious breaches of investment and rule or law commitments by host government. We and many other business groups find the EU proposal deeply flawed and biased against business. Shaun and a handful of invited business and arbitrator representatives spoke up forcefully to provide much-needed real world perspectives of investors. But the UNCITRAL group is a government-dominated process with limited scope for business and other stakeholders. The next week-long semi-annual session of the WG will be in

USCIB at the National Governors Association North American Summit:  Shaun Donnelly represented USCIB at the special North American Summit of the National Governors Association (NGA) in Scottsdale, Arizona May 4-6. U.S. state Governors met with their North American counterparts – Mexican governors and Canadian provincial Premiers – to review common North American challenges and opportunities. Not surprisingly, NAFTA was a primary focus for discussion among the governors and with USCIB and other business stakeholders participating in the session. Several USCIB member companies also participated. Governors from the three nations had remarkably similar pro-business views on NAFTA – keep it strong, do no harm, and update/strengthen it on new issues based on global best practices. Governors seem to “get” NAFTA more than some Washington politicians.

ICT Policy – Promoting Sound Policies for New Technologies

USCIB Files Comments to the U.S. International Trade Commission on Foreign Measures Affecting B2B and B2C Products & Services: Members of USCIB’s Digital Trade Working Group contributed their expertise to USCIB’s April 5, 2018, submission in response to the ITC Federal Register Notice calling for comments on Global Digital Trade 2: The Business-to-Business Market, Key Foreign Trade Restrictions and U.S. Competitiveness (#332-562) and Global Digital Trade 3: The Business-to-Consumer Market, Key Foreign Trade Restrictions and U.S. Competitiveness (#332-563). Evidence of trade barriers that members have been collecting for USCIB’s annual National Trade Estimate/Section 1377 submission to the U.S. Trade Representative’s office (USTR) served as the foundation for the ITC comments, which profiled practices in Brazil, China, European Union, India, Indonesia, and Russia.

USCIB Joins Forces with USITUA to Host Roundtable Discussion Featuring ITU Director Candidate: USCIB and the U.S. International Telecommunication Union Association (USITUA) jointly organized a special roundtable discussion on April 5, 2018, in Washington, D.C. to hear a brief of Doreen Bogdan-Martin’s candidacy for director of the International Telecommunication Union (ITU) Telecommunication Development Bureau (BDT). The Roundtable attracted nearly 40 participants from both trade associations, as well as from the U.S. Government and the Washington, DC diplomatic community. The U.S. Government will formally deposit Bogdan-Martin’s candidature prior to the ITU Plenipotentiary (PP-18), which will take place in Dubai in October 29-November 16. Senior U.S. Government officials indicated that one of Washington’s leading goals at the PP-18 is to secure Bogdan-Martin’s election to this post, highlighting her impressive track record with the ITU.

UNCTAD E-Commerce Week Provides Opportunity for USCIB Members to Highlight the Importance of Digital Technologies for Sustainable Development: UNCTAD’s E-Commerce Week, April 16-20, in Geneva, Switzerland highlighted progress by emerging economies in developing digital ecosystems to support electronic commerce and digital trade and, in turn, drive sustainable economic development. More than 1,000 participants from government, business, civil society, and international organizations convened for the fourth edition of this conference under the theme “Development Dimensions for Digital Platforms.” USCIB Vice President for ICT Policy Barbara Wanner was on the ground for the first half of the week and observed enthusiasm for the potential of digital platforms to create commercial and economic benefits. USCIB members from Mastercard, Facebook, and King & Spalding elaborated on effective ways of leveraging digital technologies to address various developmental needs as both workshop and plenary speakers.

USCIB Members Help Develop 2018 Policy Priorities for ICC Digital Economy Commission: The ICC Digital Economy Commission (ICC-DEC) held its first meeting of 2018 on April 19-20 at the ICC’s Paris headquarters. USCIB Vice President for ICT Policy Barbara Wanner contributed to discussions about existing and new policy work as did members from Apple, CenturyLink, Computer & Communications Industry Association, Facebook, Google, Intel, KPMG International, and Microsoft. Existing work that will be taken forward include draft policy papers on Artificial Intelligence (AI) and Cybersecurity as well as advocacy efforts, supported by the ICC policy paper, “ICT, Policy and Sustainable Economic Development,” at the UN High Level Policy Forum in July 2018. New work includes: (1) an ICC response to the European Union e-privacy regulation, which was created to complement the EU General Data Protection Regulation (GDPR); (2) the European Commission’s proposal for cross-border data flows in trade and investment agreements; and (3) a paper that will explore the ICC’s potential role in promoting and preparing self-regulation in the digital economy. The ICC’s ITU Working Group met on the sidelines of the Commission meeting and decided key areas of priority for ICC advocacy in anticipation of the ITU PP-18.

USCIB Members Help to Advance OECD’s Going Digital Project: Barbara Wanner and representatives from AT&T, CCIA, eBay, 21st Century Fox, Mastercard, Microsoft, and Verizon participated in the May 14-18 meetings of the OECD’s Committee on Digital Economy Policy (CDEP) and its Working Parties. The week-long meetings focused on advancing the ambitious horizontal Going Digital project and rolling out plans for a Global Forum on Digital Security for Prosperity. The meeting also featured a special Roundtable discussion on privacy interoperability. USCIB members, participating under the auspices of Business at OECD (BIAC), made numerous interventions focused on elements of the Going Digital Project, such as projects on Artificial Intelligence, Online Platforms, and E-Commerce. The OECD will present an Interim report at the Ministerial Council Meeting, May 28-June 1. The final Going Digital Report will be unveiled at a special Gala event, March 11-12, 2019, in Paris.

Tax – Advancing Tax Policies that Promote U.S. Competitiveness

USCIB Meets with EU Finance Ministries on the EU Draft Directives on Digital Services Tax and Significant Digital Presence: Bill Sample, Chair of the USCIB Taxation Committee and Carol Doran Klein, USCIB VP and International Tax Counsel, along with USCIB member companies participated in a series of meetings with Finance Ministries in European countries concerning the draft directives. The meetings were intended to provide information concerning the potential impact of the draft directives on businesses – both the companies that are targeted by the directives and others that might be “collateral damage” — and discern the countries positions on the proposed directives. USCIB pointed out that the draft directives are deeply flawed and evidence a misunderstanding of the nature of digital economy business models. For example, companies are paid for clicks, rather than displays of advertisements, intermediaries may have very low margins such that a 3% tax would exceed the total profit on the transaction, and companies do not sell data. While many countries expressed concerns with the draft directives and the EU requires unanimity to proceed, it is important that USCIB continue to make its case about the potential damage from these directives. Many countries expressed a willingness to work within the OECD to achieve a long-term solution.

USCIB Joins BIAC Tax Committee Meeting Discussing Digital Taxation: USCIB members attended the BIAC Tax Committee meeting on May 4, 2018 in Paris. The Committee meeting included presentations on the taxation of the digital economy (which is likely to be the main tax topic at the OECD, the EU and the UN this year (and perhaps beyond)); the multilateral instrument, which will enter into force on July 1, 2018 and add new countries and agreements as more countries ratify; MAP and dispute resolution; transfer pricing topics; and U.S. tax reform.

Customs and Trade Facilitation – Reducing Barriers and Costs from Customs and Border Control Practices

USCIB Customs Committee Members Meet with ICE on Forced Labor: On Thursday, May 31, 2018, USCIB Director of Customs and Trade Facilitation, Megan Giblin, along with Jerry Cook, Hanesbrands and USCIB Customs Committee Chair, and several other Committee members met with Kenneth J F Kennedy, Senior Policy Advisor Forced Labor Programs, Homeland Security Investigations, U.S. Immigration and Customs Enforcement, U.S. Department of Homeland Security to discuss ICE updates on Forced Labor.

USCIB Discusses E-commerce with DHS Trade Policy Staff: The USCIB Customs and Trade Facilitation Committee met on May 22, 2018, where Mark McKenzie of DHS Trade Policy joined the Committee to discuss the HSI ICE E-Commerce strategy, provide views on WCO E-Commerce work given DHS’ leadership role in leading the interagency process, and discuss the joint USCIB – U.S. Chamber Industry day on June 14, 2018. The event will give members the opportunity to provide inputs directly into the U.S. interagency group on the issue of the WCO E-Commerce Cross-Border Framework of Standards (FoS).

USCIB Hosts Discussion with U.S. Government Partners on Waste: Since the early 2000s there has been at the WCO, at the request of the Basel Convention, an effort to create “waste” breakouts for a variety of product categories. Under the process to update the legal text of the 2022 Harmonized System Nomenclature, the WCO has been discussing breakouts related to mechanical and electronic or electrical waste.  On May 17, 2018, the USCIB Customs Committee hosted Ms. Beth Elkins of USITC and lead U.S. delegate to the WCO HS Review Subcommittee to discuss current Basel Convention efforts in preparation for June RSC meetings.

Giblin Supports USCIB Member Companies and the USG at WCO E-Commerce Working Group Meetings: From April 9-12, 2018, Megan Giblin, participated in the WCO E-Commerce Working Group meetings held at World Customs Organization Headquarters in Brussels.  During the meetings, Giblin supported both USG interagency partners (i.e., DHS Trade Policy, CBP, and USTR) and USCIB member companies. In preparation for the meeting, the USCIB Customs Committee submitted formal comments on the Draft Framework of Standards. Following the meeting, the USCIB Customs Committee submitted formal comments on 1) the agreed Standards; 2) Related introductions; 3) additional text that was rapidly reviewed and included in the go-forward draft; 4) Resolution; and 5) Draft Workplan tied to the request to extend the tenure of the Working Group past June 2018.

Giblin Meets with Colombian Trade and Customs Attaches: On March 23, 2018, while in Brussels attending international classification meetings at the World Customs Organization, Megan Giblin, met with the Trade and Customs attaches at the Colombian Embassy to discuss key member issues including, but not limited to: Customs Valuation, Consultation with Industry, WTO TFA, and more. The USCIB Customs Committee is working on a Customs and Trade Facilitation Barriers paper, which will be used to continue to address member concerns in the Customs space.

USCIB Customs Committee Meets with Department of Treasury to Discuss E-Commerce at WCO: On March 27, 2018, Megan Giblin, Jerry Cook, and several members of the Customs Committee met with Tim Skud, Deputy Assistant Secretary (Tax, Trade and Tariff Policy) and others of Department of Treasury representatives to discuss USCIB submissions on WCO E-Commerce Draft FoS, specific concerns related to Draft FoS section on Revenue collection, and expressed views in preparation for April in-person meetings on the Framework.

China – Supporting Policies and Relationships that Enhance U.S.-China Business

USCIB Submits Comments and Testifies on China Tariffs: Following the Trump administration’s proposed Section 301 tariffs on Chinese goods, USCIB Senior Director for Investment, Trade and Financial Services Eva Hampl testified before the Section 301 Committee, chaired by USTR on May 16 regarding the proposal. Hampl’s testimony reflected USCIB member concerns about potential consequences the proposed tariffs will have on sectors vital to the U.S. economy. Her testimony was drawn from comments USCIB submitted to the U.S. Trade Representative Robert Lighthizer. USCIB also signed on to a multi-association letter on April 11 to the Hill, expressing concern about the tariffs to Chairman Brady and Ranking Member Neal. In addition, USCIB also signed on to a multi-association letter to Amb. Lighthizer in response to the request for comments.

Corporate Responsibility and Labor Affairs – Shaping the Development of CR Principles and Increasing Awareness of Business’s Positive Social Contributions

USCIB Compares Views/Priorities with State on Responsible Business Conduct in Leadup to OECD Forum in June: USCIB VP for Labor Affairs and Corporate Responsibility Gabriella Rigg Herzog, accompanied by USCIB Investment staffers Shaun Donnelly and Eva Hampl, met with the State Department senior staffers who lead U.S. Government work on Responsible Business Conduct (RBC) at the OECD on May 1, 2018. The OECD’s annual Global Forum on RBC will be held in Paris June 20 and 21 and will include a focus on RBC in the agricultural sector. The OECD’s work on RBC is centered in the Working Party on Responsible Business Conduct, under the general auspices of the OECD Investment Committee. Gabriella will again be attending the June Forum meeting. Unfortunately, some NGO groups and even a few OECD member country delegations seem to view OECD RBC work as simply an open season to criticize business. But our ongoing cooperation with the U.S. Government team continues to yield areas for serious, fact-based work.

Competition – Creating Global Legal Practices for an Open and Competitive Business Environment

USCIB Competition Committee Discusses Recent Supreme Court Case at Spring Meeting: The USCIB Competition Committee held its spring meeting on April 9, 2018. Following welcoming remarks from new Chair Dina Kallay, Ericsson, and Vice-Chair Jennifer Patterson, Arnold & Porter, members received updates on OECD Competition Meetings and BIAC Developments from John Taladay, Baker Botts and Chair of the BIAC Competition Committee, as well as updates on ICC Competition Commission Developments from Jennifer Patterson and Cal Goldman. Brinkley Tappan and William Rinner, Counsels to the Assistant Attorney General at the U.S. Department of Justice, provided an update on the activities in their office. The remarks included an extensive discussion of the Vitamin C antitrust legislation that was heard by the Supreme Court on April 24, 2018. The remainder of the agenda included an update on Brazil Antitrust Developments from Ademir Pereira Jr., focusing on the Volkswagen case, and an update on the International Competition Network (ICN) from Paul O’Brien, Counsel for International Antitrust, U.S. Federal Trade Commission (FTC).

Membership

  • Membership Meetings: The USCIB membership department and policy staff met with representatives from member companies Biotechnology Innovation Organization and Intel to develop our understanding of their policy priorities for the next year and beyond, and to see how USCIB can better serve their policy needs.
  • New Members: USCIB has recently welcomed Winston & Strawn LLP as a new member.

 

Upcoming Events:

  • 2018 OECD International Tax Conference, Washington, D.C. – June 4-5
  • USCIB Digital Trade Working Group Meeting, Washington, D.C. – June 12
  • WCO E-Commerce Framework Industry Day Meeting, Washington, D.C. – June 14
  • OECD Responsible Business Conduct Annual Forum – Paris, June 18-22
  • USCIB Trade and Investment Committee Meeting, Washington, D.C. – June 19
  • USCIB ICT Policy Committee Meeting, Washington, D.C. – June 20
  • ICANN 62, Panama City, Panama – June 25-28
  • Economic and Social Council (ECOSOC) High-Level Policy Forum & Ministerial, UN-HQ, New York – July 16-19
  • APEC Senior Officials Meeting (SOM 3), Port Moresby, Papua New Guinea – August 4-20
  • Engaging Business Forum on Business and Human Rights, Atlanta, Georgia – September 13-14

USCIB Policy and Program Staff

Rob Mulligan
Senior Vice President, Policy and Government Affairs
202-682-7375 or rmulligan@uscib.org

Erin Breitenbucher
Senior Policy and Program Associate and Office Manager, Washington
202-682-7465 or ebreitenbucher@uscib.org

Norine Kennedy
Vice President, Strategic International Engagement, Energy and Environment
212-703-5052 or nkennedy@uscib.org

Shaun Donnelly
Vice President, Investment and Financial Services
202-682-1221 or sdonnelly@uscib.org

Elizabeth Kim
Policy and Program Assistant, New York
212-703-5095 or ekim@uscib.org

Megan Giblin
Director, Customs and Trade Facilitation
202-371-9235 or mgiblin@uscib.org

Carol Doran Klein
Vice President and International Tax Counsel
202-682-7376 or cdklein@uscib.org

Ronnie Goldberg
Senior Counsel
212-703-5057 or rgoldberg@uscib.org

Mia Lauter
Policy and Program Assistant, New York
212-703-5082 or mlauter@uscib.org

Eva Hampl
Director, Investment, Trade and Financial Services
202-682-0051 or ehampl@uscib.org

Mike Michener
Vice President, Product Policy and Innovation
202-617-3159 or mmichener

Alison Hoiem
Senior Director, Member Services
202-682-1291 or ahoiem@uscib.org

Chris Olsen
Policy and Program Assistant, Washington
202-617-3156 or colsen@uscib.org

Gabriella Rigg Herzog
Vice President, Corporate Responsibility and Labor Affairs
212-703-5056 or gherzog@uscib.org

Barbara Wanner
Vice President, ICT Policy
202-617-3155 or bwanner@uscib.org

Jonathan Huneke
Vice President, Communications and Public Affairs
212-703-5043 or jhuneke@uscib.org

Kira Yevtukhova
Communications Manager
202-617-3160 or kyevtukhova@uscib.org

Top