ICT Conference â âGoing Digital: OECD Insights for a Changing Worldâ
Co-sponsored by The USCIB Foundation, Inc.
March 25, 2019
Washington DC
AT&T Forum For Technology, Entertainment & Policy
ICT Conference â âGoing Digital: OECD Insights for a Changing Worldâ
Co-sponsored by The USCIB Foundation, Inc.
March 25, 2019
Washington DC
AT&T Forum For Technology, Entertainment & Policy

USCIB CEO and President Peter Robinson was in Paris January 15 as part of the business delegation at the annual Business at OECD Liaison Committee Meeting (LCM) consultation with OECD Ministers. The focus of this meeting was on the OECDâs âGoing Digitalâ work and titled âExpanding Digital Opportunities: Agreeing Priority Actionsâ. Robinson served as a moderator of one of three concurrent panels composed of business leaders, OECD Ambassadors and OECD staff.
Robinsonâs session was âFuture Proofing to ensure broader societal successâ and engendered discussion around two questions: What approaches best enable dynamic policy-making, and where are they most needed? And what does good multi-stakeholder collaboration look like in this context?
âI see the latter being a big component of the former and was able to point to OECDâs general leadership in multi-stakeholder engagement, which has been setting an example at a time when some other international organizations seem to be not as open to business involvement,â reflected Robinson.
âThe ambassadors on my panel seemed to truly appreciate the opportunity to dialogue with business in this way, and their contributions consisted of a mix of reactions to Business at OECDâs position paper and examples of initiatives in their own countriesâincluding from Italy, Japan, and Latviaâreflecting multi-stakeholder engagement in the digital age.â
OECD Secretary General Angel Gurria and Business at OECD Chair Phil OâReily circulated among the panels and shared leadership of the plenary sessions. Business at OECD Secretary General Russell Mills also served as a moderator, as did Julie Brill, Microsoft Corporate vice president and deputy general counsel, who chairs the Business at OECD Committee on Digital Economy Policy. USCIB Board member and Business at OECD Vice Chair Rick Johnston was also on hand, as were other USCIB member executives from firms including IBM, Cooley LLP, Google and PwC.
OECD will hold its âGoing Digitalâ Summit March 11-12 in Paris. The USCIB/BIAC/OECD âGoing Digital: OECD Insights for a Changing World” will be held on March 25-26 in Washington, D.C. The annual OECD Ministerial will be held May 22-23 in Paris, at which Digital will figure centrally.
As World Trade Organization (WTO) member governments move forward this year with efforts to reform the WTO, USCIB issued recommendations on how business can support the WTO and its efforts to improve the organization. USCIBâs recommendations also noted the importance of the WTO as a cornerstone of the global rules-based trading system that has helped spread growth and development for decades.
USCIB recommendations focused on addressing subsidies and other market-distorting support provided to state-owned enterprises (SOEs), the establishment of new rules for current issues such as digital trade and customs processes on electronic transmissions, and ensuring a properly functioning appellate body, among others.
âOur recommendations for modernizing the WTO should not in any way be read as questioning the business support for WTO,â said USCIB Senior Vice President Rob Mulligan. âInstead, they are intended to highlight areas for action that would strengthen the ability of the organization to more effectively meet the demands of a changing world as it deals with the rapid evolution of technology that can quickly reshape the way companies do business and operate globally. USCIB believes that effective WTO dispute settlement is a critical part of the global rules-based trading system.â
USCIBâs recommendations also urged Member States, as they continue to discuss modernization and improvements of the WTO and its underlying agreements, to be mindful that among the WTO Member States, private entities conduct the transactions that constitute trade and investment.
âThe private sector has a direct stake in the rules that will be the outcome of the government-to-government discussions and, accordingly, private sector comments and recommendations should be actively solicited and given careful consideration by the Member States,â added Mulligan.
The Forum explored the role digital technologies and strategic partnerships play towards the success and well-being of economies and societies.
Business at OECD (BIAC) convened senior representatives from business, the OECD, and governments on December 14 in Paris at its 3rd Annual Forum on Health. The Forum explored the role digital technologies and strategic partnerships play towards the success and well-being of economies and societies. The Forum also featured business contributions on the potential of data for better health, planning for new technologies, and connecting people and patients with healthier choices and lifestyles through digital opportunities.
âImproving health in the 21st century can only take place with patient and consumer engagement by optimizing prevention and disease management approachesâ said Nicole Denjoy, chair of the Business at OECD Health Committee. âDigital and health technologies are critical to achieve this goal, but we still need policies that support this transformation.â
Experts also examined how partnerships can help achieve balanced dietary choices and active lifestyles. âWell-structured Public-Private initiatives show how even challenging issues can be tackled through joint actions when implementation is effective, positive changes bring mutual benefits and the targeted groups are supported with measures appropriate to their needs,â said Russel Mills, Business at OECD Secretary General.
âThis exemplifies the extent to which digital transformation has affected all aspects of our lives,â said USCIB Vice President for ICT Policy Barbara Wanner. âDigital transformation creates some challenges, to be sure, but also offers promising health-related benefits that have the potential to improve everyoneâs quality of life, provided there are appropriate enabling conditions for business investment in continued innovation.â
Commenting on the role of international cooperation, OECD Secretary General Angel Gurria stated, âGreater co-operation between the private and public sectors on health issues will be critical to unlock the full power of digital innovation in this area. Partnerships, including at the international level, are essential to connect the brightest minds and to promote research on complex health issues, especially where upfront R&D expenditures are vast and payoffs uncertain.â
USCIB filed comments to the office of the United Nations Secretary General to identify good examples and propose modalities for working cooperatively across sectors, disciplines and borders to address challenges in the digital age.
USCIB filed comments to the office of the United Nations Secretary General on November 28 in his request for public comments âto identify good examples and propose modalities for working cooperatively across sectors, disciplines and borders to address challenges in the digital age.â The comments will be presented to the High-Level Panel on Digital Cooperation, which was established by the UN Secretary General in July 2018. The Panel will seek to conduct a broad engagement and consultation process, resulting in a final report with actionable recommendations in 2019.
To inform the HLPDC deliberations, the Secretariat launched a wide-ranging consultation process to gather the views of governments, the private sector, civil society, international organizations, the technical and academic communities and other relevant stakeholders.
âUSCIB believes that the multistakeholder model for Internet governance continues to be the best method to enable the whole-of-society/whole-of-government consideration of digital economy issues,â said Barbara Wanner, who leads USCIB work on ICT policy. âGiven the rapid pace of technological change, governments need the perspectives provided by business, technical community, and civil society to better understand what policies are commercially viable, technically feasible, and offer adequate personal privacy protections. The inputs of all stakeholders produce a flexible policy environment critical to empowering the rapidly evolving digital economy.â
USCIBâs comments also noted that stakeholder inclusion can lower the risk of unintended consequences and increase legitimacy and adoption of policies. Top-down government-imposed policies and regulations often cannot keep pace with technological breakthroughs and can serve as a drag on development and innovation, and potentially infringe upon human rights.
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 dâAffaires, 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 Chinaâs 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 â Opening Global Markets for Trade and Investment
ICT Policy â Promoting Sound Policies for New Technologies
Tax â Advancing Tax Policies that Promote U.S. Competitiveness
China â Supporting Policies and Relationships that Enhance U.S.-China Business
Competition – Creating Global Legal Practices for an Open and Competitive Business Environment
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 Senateâs 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 USCIBâs 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, Chinaâs 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 administrationâs 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 Chinaâs forced technology transfer requirements and other abusive practices harm U.S. competitiveness, the administrationâs 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 Representativeâs office, expressing member concerns.
Members Meet with Andrew Haviland, Charge dâAffaires, U.S. Mission to the OECD: On October 11, 2018, Andrew Haviland, Charge dâAffaire, U.S. Mission to the OECD, met with a large group of USCIB member representatives from various committees. Following an update on the OECDâs 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 Era. The 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 USCIBâs support of the joint meeting, and raising some of USCIBâs 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:Â 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 ICSIDâs rules and procedures. Shaun was also able to offer sharp question and criticisms of the EUâs 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 (âOIAâ in Stateâs 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 USCIBâs 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 Colombiaâs 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 /Pacificâs 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 âU.S. /Mexico /Canadaâ 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 âsection 232â 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 âUSMCA â What Does NAFTA 2.0 Mean for Investor Protection in North America and Beyond?â 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. Governmentâs use of âSection 232â trade sanctions (thus far imposed on imported steel and aluminum but threats on imported autos are intensifying) based on threats to U.S. âessential security.â Senator (and former USTR where Shaun was a key Assistant) Rob Portman and EU Ambassador David OâSullivan offered great keynote remarks. Shaun reflected USCIBâs 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.
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 Departmentâs 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 USTRâs 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 63âs 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). ICANNâs 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 ICANNâs Business Constituency and Intellectual Property Constituency â 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 Constituencyâs 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 administrationâs 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 âbetter modelâ 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, âApproaches to a Wicked Problem: Stakeholders Promote Enhanced Cooperation and Collaborative, Risk-Based Frameworks of Regional and National Cybersecurity Initiatives,â 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.
OECDâs CDEP Moves Going Digital Project Toward Completion, Advances AI Work: The November 14-16 meetings of the OECDâs Committee on Digital Economy Policy (CDEP) focused on advancing the OECDâs Going Digital project, showcasing the OECDâs 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 projectâs 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 groupâs eventual policy recommendations align with USCIB membersâ 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 HLPDCâs 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.
USCIB Continues Efforts to Oppose the Adoption of the Draft Directive on Digital Services Tax:Â 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 âdigital dayâ in Paris to further discuss business models and the direction of the OECDâs 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 Taxâs toolkit on Offshore Indirect Transfers; and the OECDâs consultation on Financial Transactions.
USCIB Participates as an Observer in the UNâs 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.
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.
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 committeeâs goals and the beginnings of a Plan of Action, the committee heard the latest on Anti-Illicit Trade work at the OECD from the OECDâs 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 teamâs work at the IPR Center and expressed his interest in additional engagement with the USCIB Anti-Illicit Trade Committee.
USCIB Submits Comments on Chinaâs WTO Commitments and Testifies: As part of the annual request by the U.S. Trade Representative for comments on Chinaâs compliance with World Trade Organization (WTO) commitments and notice of public hearing, USCIB submitted commentson September 21 reflecting USCIB membersâ feedback and concerns. USCIBâs submission highlights concerns that arise in selected horizontal areas that transcend industry sectors, including IT security measures, Chinaâs 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. USCIBâs 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 USCIBâs 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 USCIBâs submission on Chinaâs 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 Chinaâs anti-monopoly law (AML). As noted in USCIBâs 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.
 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.
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
As Japan prepares to assume the role of host of the G20/B20 in 2019, G20 leaders issued a Declaration on December 1, outlining items needed to build consensus for fair and sustainable development.
According to USCIB Vice President for ICT Policy Barbara Wanner, there is noteworthy focus in the Declaration on the digital economy. âOf the 31 points, at least three of the top ten focus on the opportunities and challenges of digital transformation,â noted Wanner. âPoints 6-7 focus primarily on potential job displacement and the need for reskilling and vocational training while point 9 draws upon the work of the G20 Digital Task Force. This underscores the importance of bridging the gender digital divide, securing the use of ICTs, and ensuring the free flow of information, ideas, and knowledge âwhile respecting applicable legal frameworks and working to build consumer trust, privacy, data protection, and intellectual property rights protections.ââ Point 9 of the Declaration also calls for the establishment of a G20 Repository of Digital Policies to share and promote adoption of innovative digital economy business models.
Beyond the digital economy, G20 leaders pointed out other critical areas of work, such as international trade and investment, which serve as engines of growth, productivity, innovation, job creation and development. However, the group added that the multilateral trading system has fallen short on some objectives and voiced continued support for the necessary reform of the World Trade Organization (WTO) to improve its functioning. The Group also reaffirmed its commitment towards preventing and fighting corruption.
On sustainable development, leaders emphasized commitment to leading the transformation towards sustainable development and support for the United Nations 2030 Development Agenda as the framework for advancing the G20 Action Plan. Regarding the role of energy, the G20 leaders recognize the opportunities for innovation, growth, and job creation, while acknowledging the role of all energy sources and technologies in the energy mix and different national paths to achieve cleaner energy systems.
The G20 focused this year on infrastructure for development, the future of work, and a sustainable food future and a gender mainstreaming strategy across the G20 agenda.
Barbara Wanner, was present at both events, alongside USCIB members, joining global business colleagues under the aegis of ICC-BASIS at the IGF and as part of the Business at OECD (BIAC) delegation to CDEP.
The 13th Internet Governance Forum (IGF) and meetings of the OECD Committee on Digital Economy Policy (CDEP) and its Working Parties met in Paris, France the week of November 12. According to Barbara Wanner, who leads USCIBâs work on ICT policy, the two meetings could not have provided more different messages about the challenges and opportunities of digital transformation of the economy and how to address them.
French President Emmanuel Macron, who opened the three-day IGF on November 12 at UNESCO, depicted a digital economy fraught with danger from cyber-attacks, the proliferation of hate speech, and anti-democratic forces requiring development of a âbetter modelâ featuring regulation of the Internet and its actors. The OECD CDEP, in contrast, proceeded in a workman-like, measured manner to move its Going Digital Project toward completion as well as advance work on Artificial Intelligence (AI). Going Digital (GD) is an ambitious horizontal endeavor involving 14 OECD committees that takes a largely evidence-based and holistic approach to considering both the economic and societal benefits and the challenges of the evolving digital ecosystem.
Wanner, was present at both events, alongside USCIB members, joining global business colleagues under the aegis of ICC-BASIS at the IGF and as part of the Business at OECD (BIAC) delegation to CDEP.
âOur messages, as IGF workshop speakers and BIAC interveners, generally emphasized the commercial and developmental benefits that can be realized through the creation of a pro-innovation policy environment, the effectiveness of business-informed, risk-based approaches to privacy and security, and the importance of the multistakeholder model in considering the complexity of digital economy issues,â noted Wanner.
According to Wanner, by the weekâs close, members agreed that the âwatershedâ moment at the IGF created by President Macronâs remarks will require further internal discussion about what business wants and needs from the IGF and strategies to tackle likely new challenges at the United Nationâs General Assembly and other multilateral organizations. Concerning CDEPâs leadership of the Going Digital Project, members generally were encouraged that the final product â to be issued at a special forum on March 11-12, 2019 â would reflect business inputs and provide a practical guide to tap the potential of digital transformation.
The German business association BDI hosted the OECD, Business at OECD, USCIB and other business representatives at a joint conference in Berlin, Germany on November 6 to contribute to the current debate on digital taxation. The OECD is the leading organization in developing a consensus approach to this debate.
Leading global tax experts discussed current business models and value creation, profit allocation and nexus rules, and future challenges of profit taxation. Among them was USCIB Taxation Committee Chair Bill Sample (Microsoft Corporation) who gave a keynote on a panel, âFuture Challenges of Profit Taxation.â
Sample spoke about a âborderless world,â with borderless businesses and borderless consumers, which increases the need for governments to work together to reduce the negative impact of hard borders on the digitalized economy.
The event, titled International Taxation in Light of Digitalization, also featured participation by OECD Deputy Secretary General Ludger Shucknecht and Director for the OECD Center for Tax Policy and Administration Pascal Saint-Amans, as well as Head of the International Tax Unit at the German Federal Ministry of Finance Christian Schleithoff.
USCIB filed comments on November 11 in response to a Federal Register notice from the U.S. Department of Commerceâs National Telecommunications and Information Administration (NTIA) regarding a proposed approach to consumer data privacy. NTIAâs proposal is designed to provide high levels of protection for individuals, while giving organizations legal clarity and the flexibility to innovate.
USCIBâs comments highlighted the view that the free flow of data and information is critical for economic development and growth, citing a recent study that the increase in GDP from data flows was an estimated $2.8 trillion.
âBusiness realizes that the benefits of technology innovation enabled by data flows will only be realized and embraced by consumers, businesses, and governments who trust the online environment and feel confident that the privacy of their personal data will be respected,â stated the letter. âUSCIB members are committed to complying with applicable privacy regulations and recognize their responsibility to adopt recognized best practices to ensure that personal data and information is appropriately secured as technology and services evolve.â
However countries such as China, India, Malaysia, Panama and South Korea have proposed restrictive data protection laws that could significantly harm U.S. companies while also undermining efforts to enhance global interoperability.
âThese countriesâ approaches range from quite onerous data localization requirements to national privacy frameworks that are administratively burdensome and complex, all of which end up imposing economic costs on the country by undermining their attractiveness as destinations for jobs-creating investment and innovation,â warned Barbara Wanner, USCIBâs vice president for ICT policy. âThey also create an increasingly fragmented regulatory landscape, which imposes added compliance costs on business that hampers continued innovation.â
The comments also highlighted an example of a proposal made by India that would establish an alarming global precedent and could significantly impede the growth of innovation, investment, entrepreneurship, and industrial growth through strict data localization requirements, restrictions on the cross-border data flows, and extraterritorial application.
âIt is vital that the U.S. continue to exercise global leadership in pushing back against this type of protective approach to personal data protection,â said Wanner.
NTIAâs initiative runs parallel to the efforts of the National Institute of Standards and Technology (NIST) to develop a voluntary privacy framework and the efforts of the Commerce Departmentâs International Trade Administration to increase global regulatory harmony.
To read USCIBâs comments, please visit our website.