Customs and Trade Facilitation Archives

ICC Appoints New Vice Chair of Commission on Customs and Trade

Published on October 2, 2014
Luis Fernando Barbosa Sahagun
Luis Fernando Barbosa Sahagun

The International Chamber of Commerce (ICC) announced the appointment of Luis Fernando Barbosa Sahagun as the new vice chair of the Commission on Customs and Trade Facilitation.

Barbosa is a partner at Global Business-Customs Solution Consulting Group (Mexico), a member of the International Customs Law Academy in Spain, and a businessman in international trade and customs holding board positions in several Mexican oil and gas companies.

As current chairman of the ICC Mexico Commission on Customs and Trade Facilitation, he liaises with the national authorities on behalf of the Mexican business community to improve the country’s customs and logistical operations and enhance trade facilitation.

“The ICC Commission on Customs and Trade Facilitation stands to benefit greatly from Barbosa’s broad expertise in areas relating to international trade, customs and logistics, as well as from his close relationships with chambers of commerce and industry representatives in Latin America,” said ICC Secretary General John Danilovich.

Read more on ICC’s website.

Staff contact: Kristin Isabelli

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USCIB Urges Obama to Prioritize TFA

Published on October 1, 2014

4844_image001President Obama met with Indian Prime Minister Narenda Modi for the first time on September 30 to discuss U.S.-India relations.

Although trade issues accounted for a small part of their sessions, Modi reaffirmed India’s position in the struggle to implement the World Trade Organization’s Trade Facilitation Agreement, refusing to back down from his push to shield India’s food security programs from the TFA’s legal challenges. Both leaders were hopeful for a resolution to the impasse but made no firm commitments.

Prior to Modi’s meeting with Obama, USCIB joined other trade associations in signing a letter to President Obama urging the president to prioritize the TFA. The letter underscores the importance of the agreement and notes that India’s actions not only undermine the global trade system, but also call into question the future of WTO multilateral agreements.

“We were hopeful that during the Prime Minister’s visit, progress would have been made on the current impasse with India,” said Kristin Isabelli, director of customs and trade facilitation at USCIB. “It is vital that a path forward is found for the future and credibility of the WTO.”

USCIB signed the letter along with the Express Association of America, the National Foreign Trade Council and the National Association of Manufacturers.

WTO members signed on to the TFA last December as part of a package of trade reforms agreed to at the Bali ministerial. Once adopted, the TFA would streamline global customs procedures, committing developing and least developing countries to facilitate imports with aid from the developed world. The agreement is also estimated to add $1 trillion to the global economy and create 18 million jobs in developing countries. India stunned the international community when it blocked implementation of the TFA in July as it sought to leverage new concessions on food subsidies. WTO members have since failed to resolve the stalemate.

“With an agreement that would create millions of jobs and specifically help least developing countries and developing countries, it is highly disappointing that progress couldn’t be made on finding a solution to this impasse with India,” said Isabelli.

Read the letter.

Staff contact: Rob Mulligan and Kristin Isabelli

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Realize TFA Benefits Without Delay ICC Tells Trade Negotiators

Published on September 18, 2014

4834_image002The International Chamber of Commerce (ICC) is appealing to trade negotiators, reconvening this week in Geneva, to find a way forward to implement the World Trade Organization’s Trade Facilitation Agreement (TFA) following the breakdown in talks in July.

Terry McGraw, ICC and USCIB chairman, said: “We urge WTO members to bridge the gap necessary to get the Trade Facilitation Agreement in place. There is no logic in delaying implementation of a deal that could add a possible $1 trillion to global GDP—generating millions of jobs in the process.”

July’s missed deadline came as a huge disappointment to the global business community, but ICC has emphasized that a deal is still possible in the weeks ahead.

McGraw added: “Despite the procedural impasse, we are still seeing many developing economies pressing ahead with plans to implement the agreement. This progress should not be forgotten and should drive momentum to make further progress in the coming weeks.”

An essential tool to boost cross-border SME sales

In a recent letter to trade ministers, ICC pointed out that trade facilitation reforms will enable many companies to trade internationally for the first time, particularly as the Internet opens up new market opportunities for small and medium-sized enterprises to connect with customers across borders.  Indeed, research suggests that improved border and customs measures could trigger a 60-80 percent increase in cross-border SME sales in some economies.

John Danilovich, ICC secretary general, said: “In the case of India, these benefits are especially clear. To take just one example, it is estimated that Indian companies currently suffer a 30 percent cost disadvantage compared to Chinese firms when shipping garments to the United States due to port and customs inefficiencies.”

Danilovich added: “Implementation of the TFA would place Indian firms on a much more even footing in the global marketplace—enabling many companies, particularly small enterprises, to trade internationally for the very first time.”

Opening the way for food security talks

Within the ongoing negotiations, the international business community fully recognizes the importance of reaching an agreement on the food security commitments contained in the Bali package.

“It is ICC’s view that legal adoption of the TFA would provide a conducive environment within the WTO to conclude a workable agreement on this vital issue in the coming months. Importantly, this would allow for discussions on remaining aspects of the post-Bali trade agenda,” said Danilovich.

“The TFA itself offers the potential to address related food security issues in view of provisions to ensure that perishable goods receive expedited clearance at borders.  These hard-won provisions—which would benefit many of the world’s poorest—risk being lost indefinitely if adoption of the TFA is deferred or delayed,” he added.

ICC has pledged unfaltering commitment to a strong, rules-based multilateral trading system embodied by the WTO and is dedicated to ensuring that global business plays an active and constructive role in working with WTO members to help strengthen WTO rules and adapt them to the needs of 21st century trading.

Staff contact: Robert Mulligan

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Trade Facilitation in Asia

Published on August 18, 2014
Kristin Isabelli (far right) moderated a workshop on chokepoint 8 titled “Lack of Regional Cross-Border Customs-Transit Arrangements.”
Kristin Isabelli (far right) moderated a workshop on chokepoint 8 titled “Lack of Regional Cross-Border Customs-Transit Arrangements.”

Government and private-sector representatives convened in Beijing for the Asia Pacific Economic Cooperation (APEC) Senior Officials’ Meetings throughout August to discuss how to support sustainable economic growth and prosperity in the Asia-Pacific region.

USCIB participated in a number of meetings regarding customs matters. Kristin Isabelli, director of Customs and Trade Facilitation, moderated a workshop on chokepoint 8 and the private sector’s vision on the benefits of implementing proposed guidelines that would streamline cross-border trade among APEC economies. USCIB also participated in meetings that allowed business to weigh in on APEC chemicals regulation.

Chokepoint 8 addresses the lack of the lack of regional, cross-border customs transit arrangements between third party non-APEC countries. When goods transit through third party countries as they travel from one APEC country to another, there is currently no way to track the goods. Each country requires different documentation for the goods in transit, which makes moving goods more time-consuming and expensive for business. The goal of the proposed chokepoint 8 guidelines is to streamline and harmonize the required documentation, promote harmonized border transit agreements among economies and eliminate the need to undergo customs for cross border customs transit.

Isabelli’s panel addressed the lack of transit arrangements and customs harmonization in the APEC region and allowed the private sector to discuss some of the infrastructural, logistic, technological and capacity-building issues that hamper the smooth flow of goods and services between APEC economies. Businesses support the establishment of regional cross-border transit arrangements that would slash red tape at customs, enhancing efficiency throughout the supply chain and facilitating trade and economic growth. Securing such agreements requires the collaboration of all APEC economies.

This year’s third APEC Senior Officials Meetings also marked the first meeting of the customs public private sector virtual working group, of which Isabelli is the private sector co-chair. The meeting convened members of the business community, including Ralph Carter (FedEx), and customs officials to discuss a list of priorities that would complement the work of the APEC Subcommittee on Customs Procedures (SCCP), including e-commerce, single window – a system whereby traders can submit regulatory documents to a single location –and trusted trader programs. The subcommittee’s objectives are to simplify and harmonize regional customs procedures to ensure that goods and services move efficiently and safely through the region.

Staff contact: Kristin Isabelli

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USCIB Deeply Disappointed by Failure to Implement WTO Trade Facilitation Agreement

Published on July 31, 2014

WTO logoWashington, D.C., July 31, 2014 – The United States Council for International Business (USCIB) expressed dismay at the failure of World Trade Organization members to begin implementing the landmark WTO Trade Facilitation Agreement (TFA). Final agreement on a protocol to implement the TFA was blocked by objections from India and a few other developing countries.

“This is incredibly disappointing, a huge blow to prospects for continued global recovery, most notably in the least-developed countries,” said USCIB Senior Vice President for Policy and Government Affairs Rob Mulligan. “Implementing the TFA could have significantly boosted economic growth by adding $1 trillion to the global economy, and creating as many as 21 million jobs, 18 million of those in developing countries.”

Mulligan added: “This failure undercuts the credibility of the World Trade Organization. It also will put a halt to efforts led by Director General Azevedo to develop a post-Bali work plan for completing the Doha negotiations. We hope the governments can find a way to resurrect the Trade Facilitation Agreement and somehow get the WTO back on track.”

Earlier this week, USCIB President CEO Peter Robinson sent a letter to U.S. Trade Representative Michael Froman expressing deep concern over developments at the WTO. This followed urgent action by the International Chamber of Commerce (ICC) and its global network to highlight the adverse consequences of missing the deadline to implement the TFA, and an appeal to G20 trade ministers by USCIB and other U.S. business groups urging swift implementation of the TFA.

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. With a unique global network encompassing 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 at www.uscib.org.

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

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Worrying Rise in Coastal Sea Hijackings

Published on July 25, 2014

Globally, 116 incidents of piracy and armed robbery against ships were reported to the Piracy Reporting Center of the International Chamber of Commerce International Maritime Bureau (IMB). The center raised concerns over a worrying trend of small tanker hijacks during the first half of 2014.

In Southeast Asia, reports indicate at least six coastal tankers were hijacked for their cargoes of diesel or gas oil, sparking fears of a new trend in pirate attacks. Before these hijackings, the majority of attacks in the region had been aboard mainly anchored vessels boarded for petty theft.

“The recent increase in the number of successful hijackings is a cause for concern,” stated IMB Director Pottengal Mukundan. “These serious attacks have so far targeted small coastal tankers. We advise these vessels to maintain strict anti-piracy measures in these waters, and to report all attacks and suspicious approaches by small craft.”

In 2014, 10 vessels have been hijacked, seven fired upon and 78 boarded. Two hundred crewmembers were taken hostage, five were kidnapped and two were killed, according to the IMB report.

Read more on the ICC website.

Staff contact: Kristin Isabelli

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USCIB’s Goldberg Contributes to New Report on Enhancing Security in Cross-Border Trade

Published on July 10, 2014

4781_image001The global economy has empowered criminals and terrorists on an international scale, and the challenge of preventing illicit activities has proven too much for traditional top-down government controls.

To better address this threat, the Stimson Center’s senior-level Partners in Prevention Task Force, which includes USCIB’s Senior Counsel Ronnie Goldberg, has endorsed seven proposals to advance both security and industry competitiveness by leveraging public-private partnerships that harness the power of decentralized, market-based incentives.

Targeted at U.S. industry and government stakeholders, the proposals follow an 18-month Stimson Center collaboration with hundreds of high-tech manufacturers and service providers, transport and logistics firms, and insurance providers. Several USCIB members participated in the project.

The report highlights several ways industry and government can collaborate to create a set of next-generation “trusted trader” regimes that facilitate legitimate trade and focus enforcement resources on higher-risk transactions. Task force members argue that “this is an especially opportune moment to act” on these ideas given the recently concluded WTO Trade Facilitation Agreement and the growing network of Mutual Recognition Arrangements among countries with Authorized Economic Operator programs. The report also addresses the U.S. government’s Export Control Reform Initiative, information sharing, the Terrorism Risk Insurance Program, and implementation of the International Trade Data System.

Goldberg commented: “There is increasing recognition of the importance of public-private partnerships.  Governments have a vital interest in bringing the experience, resources, and expertise of business to bear on the complex national security challenges posed by a globalized economy.”

“Ronnie brought deep subject matter expertise and an important ‘multi-stakeholder’ perspective to this effort,” said Brian Finlay, Stimson’s managing director. “She offered compelling insights on the economic, social, and security dynamics of an interdependent, global economy. She drew on many years of work with the OECD, International Chamber of Commerce, and ILO to convey the views of a diverse set of players at the national and international levels. But above all, she was a genuine pleasure to work with.”

Finlay continued: “We also benefited significantly from the expertise of some of Ronnie’s USCIB colleagues. In particular, we would like to thank Kristin Isabelli for her time and valuable substantive contributions. I hope Stimson has the good fortune to cross paths again soon with the USCIB team.”

Goldberg worked alongside task force chairman and former Under Secretary of Homeland Security for Science and Technology Jay Cohen (RADM, USN, Ret), as well as other industry leaders and national security experts, in shaping the recommendations.

An initiative of the nonprofit, nonpartisan Stimson Center, the group’s report was unveiled on May 29 in Washington, D.C. at an event featuring keynote remarks by senior White House advisor Rand Beers.

Staff contacts: Ronnie Goldberg and Kristin Isabelli

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Trade Facilitation Off to Good Start Says WCO Director

Published on June 20, 2014

Speaking to over 40 members of the International Chamber of Commerce (ICC) Commission on Customs and Trade Facilitation last week, World Customs Organization (WCO) Director of Compliance and Facilitation, Gaozhang Zhu said he was optimistic about the implementation of the World Trade Organization (WTO) Agreement on Trade Facilitation adopted at the WTO’s Ninth Ministerial Conference in Bali at the end of 2013.

USCIB’s Kristin Isabelli attended last week’s meetings and reported on the Global Trade Facilitation Agreement Coalition – a partnership between USCIB, the U.S. Chamber of Commerce, the National Foreign Trade Council and the Express Association of America – in helping to move the agreement forward.

On behalf of its global network reaching 6.5 million companies worldwide, ICC was steadfast in its campaign to push for improvements in trade facilitation which, according to an ICC report, could boost the world economy by $1 trillion annually and result in job gains of 21 million.

“Because most articles of the WTO’s Agreement on Trade Facilitation will be implemented by Customs agencies, the WCO is well-positioned to drive the trade facilitation agenda,” Zhu said. “The aim is to secure a resilient supply chain. We are off to a good start but the hard work is just beginning.”

Read more on the ICC website.

Staff contact: Kristin Isabelli

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Business Coalition Action on WTO Trade Facilitation Agreement

Published on June 13, 2014

Reports

ContatinersThe proposed World Trade Organization (WTO) Agreement on Trade Facilitation holds the potential to significantly bring down transaction costs borne by business and consumers.

WTO members recently reached a consensus on the agreement at the Bali Ministerial Conference in December 2013. If the agreement finally passes after almost a decade of negotiations, it could increase global GDP by over $1 trillion.

Kristin Isabelli,USCIB’s director of customs policy, attended an ICC Trade Facilitation and Customs Commission meeting in Paris from June 12 to 13, where she showcased the work of the Global Trade Facilitation Agreement Coalition – a partnership between USCIB, the U.S. Chamber of Commerce, the National Foreign Trade Council and the Express Association of America – in helping to move the agreement forward. Isabelli also serves as ICC’s representative to the World Customs Organization’s Harmonized System Committee.

The international business community, represented by the Global Trade Facilitation Agreement Coalition, has much to gain from the WTO trade agreement. The agreement is estimated to cut the cost of trade by 10 percent in developed countries and by 15 percent in developing countries.  It will also create new jobs and slash red tape at the border. The coalition came together to organize private sector interests and to develop a strategic action plan to optimize the agreement’s implementation.

Isabelli noted that the coalition seeks to work closely with the International Chamber Commerce (ICC), the WTO and the World Customs Organization and stressed the importance of working with different countries’ local business communities.

“The agreement is going to be a heavy lift,” said Isabelli. “We want our coalition to be a global initiative.”

The coalition aims to be inclusive within the business community and plans to coordinate among the private sector and among the WTO member governments. Given that the agreement’s implementation will take a long time, Isabelli described the process as a “marathon versus a sprint,” and that business needs to be prepared to put its energies into the agreement for the long term.

“We are working very closely with our own government, and they are thrilled that we are setting up this coalition,” Isabelli said of the U.S. government. “They want to work closely with us.”

Staff contact: Kristin Isabelli

 

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Partnership with Global Trade Review at NA Trade Export Finance Conference

Published on June 12, 2014

The United States Council for International Business is pleased to announce its partnership with the Global Trade Review at the June 19 North America Trade and Export Finance Conference in New York City.

At the conference business leaders from across the United States and Canada will gather to discuss key concerns regarding cross-border trade and the role of the financial sector in securing business with high-growth emerging markets.

The event will be headlined Chairman Geoffrey Brady, managing director and North American regional trade executive for J.P. Morgan and keynote speaker Gary Clyde Hufbauer, Reginald Jones Senior Fellow at the Peterson Institute for International Economics.

The USCIB International Bookstore will be displaying its trade finance publications including UCP 600, Uniform Rules for Bank Payment Obligation and Incoterms®2010 as well as many other popular ICC titles; we look forward to seeing you there.

Staff contact: Elizabeth Cafaro at ecafaro@uscib.org

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