Trade and Investment Archives

USCIB Joins in Business Appeal on WTO Reform

Published on April 2, 2019
L-R: Shaun Donnelly (USCIB), Rafael Nava (Consejo Empresarial Mexicano de Comercio Exterior (COMEX))

USCIB has joined with leading private-sector groups from Argentina, Brazil, the European Union and Mexico in a statement on reforming the World Trade Organization (WTO). Meeting at a daylong seminar on April 2 in Sao Paolo hosted by CNI, the Brazilian industry confederation, the groups underscored the critical importance to business of the WTO “as the proper and only way to guarantee the full range of rules and necessary predictability to promote global economic and investment growth.” The seminar, titled “Reforming the WTO: Proposals for Improving the Governance of the Multilateral Trading System,” was co-hosted by the International Chamber of Commerce (ICC).

Industrial Development Director of CNI Carlos Eduardo Abijaodi presented the joint statement to Tim Yeend, chief of staff to the WTO director general. CNI and USCIB were joined by Union Industrial Argentina (UIA), Business Europe and COMEX of Mexico to participate in the seminar and to underline shared views on the crucial role the WTO plays in providing and enforcing the vital legal rules and procedures underpinning the global trading system.

The five associations emphasized their shared view that the WTO needs to updated and reformed to deal with several outstanding challenges. Senior representatives of all five national business groups were panel speakers, offering business perspectives on the importance of the WTO, its challenges, and possible solutions. Global Policy Director for the ICC’s network Nikolaus Schultze also participated actively in the seminar and laid out the need for strong business input into the WTO reform effort.

In their statement, the industry groups focused on four areas:

  • saving the WTO dispute resolution system
  • updating, strengthen and modernizing WTO rules
  • improving WTO’s monitoring function
  • expanding and improving the WTO’s rule-making function.

The groups also called upon WTO members to establish a formal consultative mechanism for the private sector via a permanent business advisory committee.

L-R: Carlos Eduardo Abijaodi (CNI – Brazil), Rafael Nava (COMEX – Mexico), Tim Yeend (World Trade Organization), Jeff Schott (Peterson Institute of International Economics – US), Peter Draper (University of Adelaide – Australia), Nikolaus Schultze (International Chamber of Commerce, Paris), Shaun Donnelly (USCIB – US), Fernando Landa (Union Industrial Argentina,), Fabrizio Panzini (CNI – Brazil)

USCIB Vice President for Investment and Financial Services Shaun Donnelly who represented USCIB at the seminar in Sao Paulo, praised CNI and ICC hosts for organizing the session. “We at USCIB are committed partners with CNI and, of course, with ICC, as we are ICC of the U.S.,” said Donnelly. “Today’s discussions, which also included senior WTO and Brazilian Government officials, were candid, substantive and very timely. I was honored to speak on the ‘Business Priorities for the WTO’ panel along with my four association partners and to partner with them in issuing our joint statement. For us at USCIB, the WTO and WTO reform are top priorities. Today we joined with four key partners from Europe, Brazil, Argentina and Mexico to add an international accent to our work on and commitment to the WTO. We and our member companies want to work with all our partners, including the U.S. Government, the U.S. Congress, the International Chamber of Commerce, the WTO Secretariat and our unique network of leading business association partners around the world to help make the WTO the well-respected, updated, strengthened organization we all need it to be.”

The joint statement follows upon USCIB’s earlier paper on WTO modernization, which focused on addressing subsidies and other market-distorting support provided to state-owned enterprises, 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 other issues.

APEC Workshop Emphasizes Crucial Role of Business

Published on April 1, 2019
L-R: Matías Pinto Pimente (Embassy of Chile), Monica Hardy Whaley (NCAPEC) at APEC Essentials Workshop

USCIB partnered with the National Center for APEC (NCAPEC) and C&M International to host an APEC Essentials workshop on March 27 to help participants understand the fundamentals of APEC including its history, objectives and opportunities. The event, which attracted approximately 80 attendees, featured practical case studies led by industry discussants on how several sectors approach priority issues and leverage the APEC platform.

Private sector participation in APEC is organized under the leadership of the NCAPEC, which serves as the designated 2019 U.S. Strategic Partner for the CEO Summit, Secretariat to the U.S. members of the APEC Business Advisory Council (ABAC) and as Chair and Secretariat of the U.S. APEC Business Coalition.

USCIB President and CEO Peter Robinson makes remarks at the APEC Essentials Workshop

“APEC is an incubator where economies and business can come together in a non-competitive, mutually supportive way,” said USCIB President and CEO Peter Robinson, who gave welcoming remarks and moderated one of the panels. “APEC member economies do not need to worry about binding treaties but indirectly they can influence what’s going on in the world, such as in customs and trade and environmental goods. APEC sets an example. Too many international organizations are shutting out the private sector. APEC welcomes the private sector and other stakeholders and that’s one of the reasons it gets things done.”

USCIB addressed a number of issues through APEC to advance discussions across a range of issues including chemicals regulation, advertising self-regulation, data privacy, customs and digital trade. USCIB members and staff have engaged in several APEC working groups, including the Chemical Dialogue, APEC Business-Customs Dialogue, Customs Procedures Virtual Working Group, Alliance for Supply Chain Connectivity, the Electronic Commerce Steering Group and Data Privacy Subgroup.

USCIB’s Customs and Trade Facilitation lead Megan Giblin, alongside Customs colleagues

The program featured Matías Pinto Pimente, head of the economic department and trade commissioner at the Embassy of Chile in Washington DC; Emily Fischer, principal APEC coordinator, economic policy advisor, U.S. Department of State; Jillian DeLuna, director for APEC affairs, Office of the U.S. Trade Representative; Monica Hardy Whaley, president, National Center for APEC; and Ambassador Robert Holleyman, president and chief executive, Crowell & Moring International; Partner, Crowell & Moring; former Deputy U.S. Trade Representative.

Chile will host this year’s APEC meetings.

USCIB Joins Global Dialogue on Anti-Corruption and Technology

Published on March 27, 2019

On March 20-21, 2019, the OECD hosted its annual Global Anti-Corruption & Integrity Forum in Paris. This year, the Forum’s theme was “Tech for Trust” and it focused on the risks and opportunities of new technologies for anti-corruption and integrity. USCIB Senior Director for Investment, Trade and Financial Services Eva Hampl represented USCIB at the Forum.

The sessions covered issues including data analytics, tax information sharing, parcels trade, regulation, state-owned enterprises, and lobbying.

The OECD is currently reviewing their 2009 Anti-Bribery Recommendation which was adopted by the OECD in order to enhance the ability of the States Parties to the Anti-Bribery Convention to prevent, detect and investigate allegations of foreign bribery. This document, which is open for review in a public consultation, was also the topic in several sessions last week in Paris. The lively debate that included USCIB and others representing Business at OECD raised issues such as the demand side of bribery, voluntary self-disclosure, incentivizing investing in compliance systems, and state-owned enterprises.

“The issue of bribery and corruption more broadly continues to be a significant cost to business,” said Hampl, reporting from the meeting in Paris, “Technology, including blockchain, big data analytics, AI and others are transforming the way business is done, but they also have the potential to address many of the anti-corruption issues. As this discussion continues at the OECD, business will be at the table providing valuable input from dealing with these issues at the front lines.”

Donnelly Offers US Perspectives to Nordic Business Delegation

Published on March 26, 2019

USCIB joined with the local Washington offices of key international partner business groups, including the Representative of German Industry and Trade RGIT/BDI, CII from India, TUSIAD from Turkey, Keidanren from Japan and CBI from the UK, in a very useful free-wheeling briefing session for a visiting delegation from leading Nordic business associations.

The visiting Nordic delegation included senior representatives from the Confederation of Swedish Enterprise (”SE”), Confederation of Danish Enterprise (“DI”), Confederation of Finnish Industries (“EK”), and Confederation of Norwegian Enterprise (“NHO”), all of which are national committee partners of USCIB in one or more of USCIB’s international groupings of Business at OECD (BIAC), the International Organization of Employers and the International Chamber of Commerce.

Shaun Donnelly, USCIB vice president for investment and financial services, was the only representative in the room from a U.S. trade association, offering American perspectives and explanations for some of the unprecedented current policy developments in the U.S. and globally.

“Our Nordic partner business organizations are generally strong pro-market, pro-liberalization allies for U.S. business globally and, importantly, within the EU,” said Donnelly. “The delegations had met with the usual suspects on the Washington trade scene in their packed three-day visit but, frankly, left town with as many questions as answers. USCIB will continue to work our Nordic partner associations and other allies across our unique global network to advance our key policy objectives.”

OECD Focus on “National Security” as Factor in Inward Investment Reviews

Published on March 19, 2019

After its opening all-day Foreign Investment Treaties conference (reported in USCIB’s International Business Weekly report last week) on “level-playing fields” in Foreign Direct Investment (FDI), the OECD committee devoted a full-day of its meeting last week to a wide-ranging discussion of increasing reliance on “national security” factors in reviews of inward FDI flows by many OECD member and other governments.

“Business at OECD” representatives were  active participants in all those discussions, with USCIB Vice President for Investment Policy Shaun Donnelly among the business speakers.  David Fagan, a partner in USCIB member firm Covington and Burling’s Washington office and a leading FDI/investment security lawyer, was a featured expert speaker during the discussion where the U.S. Government’s Committee on Foreign Investment in the U.S. or “CFIUS” and the recently enacted Foreign Investment Risk Review Modernization Act  (“FIRRMA”) of 2017 were much-discussed.

“David did a great job of explaining recent development in US policy on reviewing FDI,” according to Donnelly. “Our Business at OECD team was able to get across our key messages on the importance of closely delineating national security investment reviews around the world to specific, legitimate security issues and avoiding opening the door to abuse of “national security” provisions for blatantly projectionist discrimination against foreign investors around the world.”

At B20, Robinson Stresses Need for International Cooperation

Published on March 15, 2019
Peter Robinson at the B20 in Japan

USCIB President and CEO Peter Robinson was in Japan the week of March 11 for the B20 Summit, alongside other business leaders such as John Denton, secretary general and Paul Polman, chair of the International Chamber of Commerce, Phil O’Reilly, chair and Russell Mills, secretary general of Business at OECD, as well as Erol Kiresepi, chairman of the International Organization of Employers.

Robinson spoke on a panel titled, “Global Economy for All: International Cooperation for Global Governance.” In his remarks, Robinson proposed looking at international cooperation from two perspectives: strengthening global institutions and rules, while also encouraging bottom-up approaches and a general spirit of cooperation, rather than confrontation, in international economic relations.

“For the foreseeable future, we will need to accept that many electorates and governments view the world through a more nationalistic, mercantilist lens,” said Robinson. “We need to demonstrate the value in international cooperation, not just through new binding rules and official structures, but through voluntary, bottom-up initiatives. Efforts such as the Paris Climate Agreement, or the plurilateral agreements being pursued by WTO members on several issues including digital trade, should be welcomed and encouraged.”

Throughout the course of the panel, Robinson also touched upon trade conflicts with China, WTO modernization, and the need to radically reform education, job training and retraining approaches around the world.

Robinson also called out climate change as being a crucial long-term global challenge. “Climate impacts everything – economic growth, jobs, health care, where people live,” stressed Robinson. “We therefore need to view climate and energy policy in a more holistic manner.”

The Japan Times covered the B20 and quoted Robinson in their piece, “At B20 in Tokyo, World Business Leaders Urge Stronger Cooperation on Looming Challenges.” The Japan Times quoted Robinson emphasizing that “The American business community still believes in open trade, globalization and multilateralism.”

Robinson also applauded the B20’s prioritization of adoption and dissemination of artificial intelligence to ensure that AI development deployment remains “human-centric”. This issue will be a big focus of the digital economy conference that USCIB is organizing with Business at OECD (BIAC) and the OECD on March 25 in Washington, DC.

USCIB Lays Out Priorities for WTO Modernization

Published on March 13, 2019

Washington, D.C., March 13, 2019 – Responding to this week’s hearing in the Senate Finance Committee on the future of the World Trade Organization, the United States Council for International Business (USCIB), which represents America’s most successful global companies, has submitted a business roadmap for the WTO laying out priorities for the organization’s modernization.

“The continued existence and effectiveness of the WTO is vital to U.S. business,” stated USCIB President and CEO Peter Robinson and USCIB Trade and Investment Committee Chair Charles R. Johnston in their transmittal letter.

“The WTO is a cornerstone of the global rules-based trading system and has helped spread growth and development for decades. The WTO’s existing agreements, such as those on intellectual property rights, sanitary and phytosanitary measures, and technical barriers to trade, provide practical commercial benefits for business because they establish global frameworks of rules designed to facilitate international trade.”

USCIB’s roadmap focuses on addressing subsidies and other market-distorting support provided to state-owned enterprises, 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 other issues.

The statement notes that the U.S. has been a major beneficiary of the WTO’s dispute settlement system, bringing and winning more cases than any other WTO member. “In fact, the U.S. has prevailed in over 90% of the complaints it filed,” USCIB observed.

USCIB urged WTO members to actively solicit the views of the business community, which undertakes the vast majority of cross-border trade and investment that is impacted by WTO rules. “The 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,” the statement said.

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 at www.uscib.org.

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

 

Donnelly Visits Google During Trade Tour in Switzerland

Published on March 11, 2019

USCIB Vice President for Investment and Financial Services Shaun Donnelly spent the week of March 4 as the business representative on a Washington Think Tank study tour of Switzerland, focusing on trade issues and possibilities for a potential U.S.-Switzerland Free Trade Agreement (FTA).

While in Zurich, Donnelly and the 12-member study tour visited Google Switzerland’s major operations and R&D center. Google’s Zurich operations are the company’s third-largest R&D operation globally and their largest outside the United States. Google opened its first office in Zurich only fifteen years ago and it has quickly grown into one of the largest and most respected employers in the city.

Coincident with the study tour’s visit, Google invited the leadership of economiesuisse, Switzerland’s largest and most influential business association to a luncheon meeting with the visiting Washington team. Economiesuisse is USCIB’s Swiss counterpart and partner in Business at OECD, the International Chamber of Commerce (ICC) and other international business fora.

USCIB Speaks at Annual OECD Investment Treaties Conference

Published on March 11, 2019
Shaun Donnelly (USCIB) speaks at the 2019 OECD Investment Treaties Conference in Paris

OECD’s annual all-day conference in Paris on International Investment Treaties had a distinctly USCIB flavor this year.  The conference, held on March 11, included leading academics, lawyers, civil society and business representatives under the auspices of the Business at OECD (BIAC) team in addition to the government experts delegates in Paris for the OECD Investment Committee meetings.

This year’s conference theme was a “Level Playing Field for Foreign Direct Investment.” USCIB Vice President for Investment Policy Shaun Donnelly led the Business at OECD team, serving as a panelist during the discussion on addressing State-Owned-Enterprises (SOE) Investment Issues and again as the business representative on the final wrap-up panel.  In addition, USCIB member lawyers and leading international arbitrators Jeremy Sharpe of Shearman and Sterling and a former chief of investment arbitration in the State Department Legal Advisor’s Office, as well as David Rivkin of Debevoise and Plimpton, formerly president of the International Bar Association, spoke on different panels.  Deputy Assistant U.S. Trade Representative for Investment Policy Lauren Mandell was also a panelist.

“Investment policy issues, investment treaties and especially ‘ISDS’ international arbitration to resolve investment disputes are increasingly under political attack internationally so the conference did spark some interesting debate,” said Donnelly. “USCIB will be on the front lines defending strong investment treaties, including effective dispute settlement disciplines and arbitration provisions.”

USCIB Co-Sponsors China-US Foreign Policy Association Panel

Published on March 4, 2019

USCIB co-sponsored a recent Foreign Policy Association event titled, “U.S.-China Trade: Taking Stock and Looking Ahead” on February 28. The event, hosted by Citi in New York, featured a panel of experts who discussed the state of trade between the two countries, including the geopolitical and economic implications of the trade war, the 90-day truce, and the negotiations currently taking place.

USCIB member Citigroup’s Global Head of Subsidiaries Marc Merlino moderated the panel. Experts included Bloomberg’s Chief Economist Tom Orlik, Director of CSIS’ Project on Chinese Business and Political Economy Scott Kennedy and Global Head of Research for JP Morgan Joyce Chang.

Technology issues, particularly as they relate to data and Artificial Intelligence (AI), were a common theme of discussion across all panelists. AI is a necessary investment for China due to their demographics and life expectancy. However, while China is focused on AI and data, they lag in the quality of their commercial aircraft and semiconducters, making economic partnerships with the United States a necessity, particularly as China’s debt continues to grow.