Business Groups Fire Back Against Proposed Tax on Tech Firms

Following the United Kingdom’s plan to impose a new tax on sales by many technology companies, U.S. business groups, including USCIB, fired back warning that the proposal would violate tax agreements by targeting U.S. firms. The proposal includes a 2% tax on sales by large social media platforms, internet marketplaces and search engines from April 2020.

BBC reported on this development and highlighted comments by U.S. Treasury Secretary Steven Mnuchin, who according to BBC, voiced strong concern about different countries’ efforts to develop digital sales tax. “This tax is a proportionate and targeted interim response that reflects the changing global economy, and how digital businesses derive value from users – it’s not targeted at any country and seeks to ensure the tax system is fair,” said Mnuchin.

USCIB submitted a letter to EU Commissioner Pierre Moscovici in July in response to a proposed EU directive urging the directive not to be adopted.

“The directives reflect a lack of understanding of current and evolving business models and would distort the allocation of revenue or income to functions that do not accurately reflect value creation by the companies earning the revenue or income,” stated USCIB’s letter.

“USCIB supports a consensus-based comprehensive income-tax-based solution applied equally to agreed upon issues in segments of the digitalized economy,” added USCIB Vice President for Tax Policy Carol Doran Klein. “There is agreement that the global economy, businesses and the public sector are digitalizing. Therefore, any solution to agreed upon issues (if any) must apply to the economy broadly, not to narrow segments of the economy. Any solution must also be broadly agreed to by countries to minimize double taxation and controversy, therefore the G20-OECD Inclusive framework is the best forum for this discussion. The EU itself recognizes the importance of a multilateral approach.”

 

ICANN Focuses on Policy Priorities for Domain Names

ICANN 63’s Annual General Meeting (AGM) wrapped up on October 25 in Barcelona, Spain, marking the 20th anniversary of ICANN. The AGM brought together roughly 3,000 participants from business, government, civil society, and the technical community from across the world to focus on policy priorities for the domain name system (DNS).

The meeting was dominated by ICANN stakeholder efforts to develop a formal policy to replace the Temporary Specification for gTLD Registration Data (Temp Spec).

“The Temp Spec was designed 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),” reflected USCIB Vice President for ICT Policy Barbara Wanner. “A special group of ICANN’s policy-making body spent most of the meeting focused on moving forward the ‘expedited policy development process’ (EPDP) that must replace the Temp Spec by May 25, 2019.”

ICANN’s proposed Draft Framework for a Possible Unified Access Model for Continued Access to Full WHOIS Data (UAM) was also in the spotlight. At ICANN 63, the Business Constituency (BC), of which USCIB is a member, continued to press ICANN to undertake work to implement the UAM concurrent with the EPDP. In addition, the BC urged emergency interim measures to enable third-party access to WHOIS data, citing already extraordinary economic and security costs stemming from spikes in cybersecurity attacks, cybercrime, and brand and IP infringement.

Wanner participated in the October 20-25 meetings in her capacity as the BC’s representative to the Commercial Stakeholder Group (CSG), a position that has enabled greater input to policy discussions at the CSG executive committee-level on behalf of USCIB members and facilitated important meetings with senior ICANN officials and other key constituencies. At ICANN 63, in particular, this entailed coordinating with CSG partners to support the election of USCIB member Keith Drazek (VeriSign) to GNSO Council Chair, a position that will be key to shepherding work on the EPDP and third-party data access.

USCIB Outlines AI Policy Priorities

Digital technologies and the online environment enabled by them present unprecedented opportunity to raise productivity and generate economic growth.
Close cooperation with business can ensure that regulatory approaches create a holistic framework that enables business investment.

In response to a Federal Register request for information concerning the National Artificial Intelligence (AI) Research and Development Strategic Plan, USCIB submitted comments outlining AI policy priorities.

“USCIB members believe that digital technologies and the online environment enabled by them present unprecedented opportunity to raise productivity, foster creativity and innovation, generate economic growth, build trust, and enhance social prosperity,” said USCIB Vice President for ICT Policy Barbara Wanner. “Key to realizing these social and economic benefits, however, are policies that ensure an open, safe, secure, stable, interoperable, seamless, and sustainable Internet.”

The comments submitted by USCIB emphasized that serving as essential complements are policies that encourage both private investment and public-private partnerships in the R&D needed to drive innovation and realize the potential of AI and other emerging technologies. Such policies are most effectively developed when informed by stakeholder engagement.

“Government policymakers can benefit from close cooperation with business, academia and other stakeholders to ensure that the legal, policy, and regulatory approaches implemented create a holistic framework that enables sustainable business investment in infrastructure and product innovation, includes technically feasible solutions, and offers appropriate privacy and human rights protections,” added Wanner. “The participation of a full complement of stakeholders best ensures that decisions concerning R&D and related policies avoid unintended consequences or outcomes that fall short of expectations. Importantly, a multistakeholder approach will help to build trust and dispel fears that could undermine realization of AI’s economic and societal benefits.”

Robinson Contributes Letter to FT on Making Internet Affordable to All

FT featured a letter by USCIB CEO and President Peter Robinson in response to an editorial “The web should be open to all the world’s citizens” on October 11.

In the letter, Robinson emphasizes the important role of public-private partnerships as crucial to broadening access to the internet, noting that companies such as Google, Ericsson, Facebook, Intel and Microsoft are already moving ahead in this regard.

“Focused on driving prices down to meet the UN Broadband Commission target of entry-level broadband services priced at less than 5 percent of monthly income, they are working with governments and other stakeholders in countries as diverse as Nigeria, the Dominican Republic and Myanmar to make the internet more affordable and accessible,” writes Robinson.

The full letter can be found here, subscription to FT required.

USCIB, USTR Discuss World Trade Organization Updates

L-R: Rob Mulligan (USCIB), Chris Wilson (USTR)
Meeting was an opportunity to receive WTO updates and to raise questions regarding U.S. government negotiations or initiatives in Geneva.
USTR highlighted areas that the U.S. delegation is working on, such as over-fishing and e-commerce.

 

Members of USCIB’s Trade and Investment Committee sat down with Chris Wilson, deputy chief of mission at USTR’s Geneva office, on August 30 in Washington DC. The meeting was a timely opportunity for USCIB to receive the latest developments at the World Trade Organization (WTO) and to raise questions regarding specific U.S. government negotiations or initiatives underway in Geneva.

Wilson highlighted some of the areas that the U.S. delegation is “actively and constructively” working on with the WTO, such as multilateral negotiations to develop new disciplines with respect to subsidies that contribute to over-fishing and an emerging plurilateral initiative on e-commerce.  Wilson also outlined some of the areas the U.S. sees as needing reform in the WTO, including concerns with the Appellate Body.

“As trade disruptions over the past year have escalated, more USCIB members have raised concerns about the potential impact on the WTO and how business can help move forward reforms at the WTO,” said USCIB Senior Vice President for Policy and Government Affairs Rob Mulligan. “Our discussion with Chris helped clarify U.S. government views and informed us, as well as our members, of possible steps to take.”

 

USCIB Urges Nomination of Ombudsperson for Privacy Shield

U.S.-EU Privacy Shield Framework facilities trans-Atlantic data transfers and is essential to almost every U.S. industry.
Software contributes more than $1 trillion to the U.S. economy and supports more than 10 million U.S. jobs.

 

USCIB joined with BSA, The Software Alliance and other industry leaders in sending a multi-industry letter to U.S. Secretary of State Michael Pompeo on August 20 urging him to put forward a qualified candidate to serve as the Under Secretary for Economic Growth, Energy, and the Environment.

In addition to advocating for open markets and fair trade policies, the Under Secretary plays a critical role as Ombudsperson for the U.S.-EU Privacy Shield Framework, which facilities trans-Atlantic data transfers and is essential to almost every U.S. industry. Businesses must be able to move data freely around the world in order to realize the benefits of software, which contributes more than $1 trillion to the U.S. economy and supports more than 10 million U.S. jobs.

“Through your distinguished leadership, U.S. companies look to the Under Secretary to advocate open markets and fair trade policies and negotiate international agreements with economic impact,” states the letter.

Ellen Blackler of Disney Named to Chair USCIB’s ICT Policy Committee

Ellen Blackler, The Walt Disney Company

New York, N.Y., August 20, 2018 – The United States Council for International Business (USCIB), which represents American business in numerous global policy forums, has appointed Ellen Blackler, vice president of global public policy with The Walt Disney Company, as chair of its Information, Communications and Technology (ICT) Committee. As chair, Blackler will spearhead the organization’s development and delivery of business views on information technology and internet policy matters worldwide, working with companies and organizations from across USCIB’s diverse membership.

“Ellen Blackler brings in-depth knowledge of critical issues in international ICT policy and cross-border business,” said USCIB President and CEO Peter M. Robinson. “She has played a key role in forging consensus across industries to advance business views in the UN, the OECD and other important multilateral forums. Under Ellen’s stewardship of our ICT Committee, and with the ongoing support of USCIB Vice President Barbara Wanner, we look forward to fostering an even more active and constructive role for the private sector in global ICT policy discussions.”

Blackler manages public policy issues for Disney on a range of issues related to internet policy, human rights, privacy, and children and the media. Prior to joining Disney, Blackler worked for AT&T, where she oversaw policy development on privacy, broadband deployment and universal service, access to ICT for people with disabilities, health care and tax-related issues. Blackler previously served on the staff of the Federal Communications Commission, where she led the team drafting the FCC’s annual reports on the availability of broadband service, among other responsibilities, and in the New York State government.

USCIB’s ICT Committee advocates for policies characterized by free and fair competition, minimal government intervention and free information flows that ensure the continued growth of information and communication technologies in a range of strategic forums, including the UN, OECD, APEC and ICANN. In particular, it leverages USCIB’s overseas network of business groups, including the International Chamber of Commerce and Business at OECD, to secure strong industry representation and input to major multilateral discussions of ICT issues.

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 the International Chamber of Commerce, the International Organization of Employers and Business at OECD, 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, VP Communications, USCIB
+1 212.703.5043 or jhuneke@uscib.org

USCIB Gathers Stakeholders to Discuss E-Commerce Framework

On July 31 and August 1, USCIB teamed up with the U.S. Chamber of Commerce to host the second in a series of meetings tied to e-commerce and the work being undertaken by the World Customs Organization (WCO). Dubbed “Industry Days,” these meetings included robust participation from both private sector and public sector representatives from multiple U.S. government agencies aimed at continuing the established dialogue on the WCO’s E-Commerce Framework of Standards (FoS).  Last week’s meetings were conducted in a small group fashion, which were stakeholder specific (i.e., carriers, customs brokers, e-payment, marketplaces and vendors).

Per the WCO, “The Framework of Standards is intended for Customs administrations wishing to develop legislative and operational frameworks for cross-border e-commerce.” In June, the WCO Council endorsed the draft FoS that included an introduction, 15 Standards and related introductions, as well as a U.S. tabled Resolution. In addition, the Council approved a one-year extension of the E-Commerce Working Group as well as a draft Work Plan noting the need for flexibility with respect to timelines and adherence. The next meeting of the WCO’s E-Commerce Working Group will take place in October.

Currently, the U.S. government and other WCO Member administrations are working to develop and  provide inputs on such intersessional topics as Definitions, Work Plan, and Data Elements. These “Industry Day” meetings are critical to the development of the U.S. government – one government – position, and provide the opportunity for private sector stakeholders to advance general and specific comments and concerns regarding aspects of the FoS, topic specific questions (e.g., Flow Charts, Data and Data Privacy, risks, etc.,) as well as overall views related to e-commerce.

“The purpose of these meetings was to bring together relevant intermediaries to discuss and gather perspectives in efforts to assist in USG policy and position development,” said Megan Giblin who leads USCIB’s work on customs and trade facilitation.  “Overall the meetings were successful and brought together USG agencies including: Department of Homeland Security, Customs and Border Protection, Office of the U.S. Trade Representative, U.S. Department of Treasury, Department of Energy, Department of State, U.S. Postal Service, Federal Trade Commission as well as many private sector stakeholders including many who are new to the WCO E-Commerce Framework of Standards.”