Trade and Investment Archives

USCIB Defends Pro-Investment Policies at UNCTAD

Published on October 30, 2018

USCIB Vice President for Investment and Financial Services Shaun Donnelly was in Geneva last week (October 22-26) leading international business advocacy efforts at the annual World Investment Forum (WIF) hosted by the UN Conference on Trade and Development (UNCTAD). Donnelly led a small, but outspoken, group of business representatives, including the European Service Forum and BDI, Germany’s large business organization, and participated in a few sessions, being a constant business presence throughout the course of the week.

According to Donnelly, UNCTAD seems to remain a forum dominated by developing country representatives, academics, and non-government organization activists, often with anti-business orientations. UNCTAD did however include some leading CEOs from Novartis, Nestle, DeBeers and Ethiopian Airlines on opening plenary panels, all of whom provided excellent, candid remarks on why and how major businesses invest abroad. Donnelly and his colleagues followed suit.

“We spoke up forcefully the rest of the week on the important, indeed indispensable, role Foreign Direct Investment (FDI) plays in financing economic development and providing critical capital for achieving the UN’s Sustainable Development Goals (SDGs) in developing economies,” noted Donnelly.

Donnelly was included as one of the kickoff speakers (the only one representing business views) at the annual high-level experts meeting on International Investment Agreements (IIAs). “We all need strong, comprehensive investment agreements, including effective Investor-State Dispute Settlement (“ISDS”) enforcement provisions that are essential to support the required substantial FDI flows,” said Donnelly. “I also had the opportunity to directly challenge some European Union representatives pushing their bureaucratized ‘Multilateral Investment Court’ as an alternative to the proved ISDS systems.”

Donnelly also represented business on a side-event panel, alongside government representatives from Canada and Nigeria, that was organized by the UN Center for Settlement of Investment Disputes (ICSID), the World Bank affiliate whose rules and procedures, currently being updated, have long governed most ISDS dispute processes.  Additionally, Donnelly was able to speak privately with senior government officials at, and on, the margins of various plenary sessions, panels and side events.

“We need to be realistic,” said Donnelly, reflecting on his week on the front lines of international investment policy debates. “After all, it’s UNCTAD and there are a lot of pressures out there, helpful or otherwise, pressing for major reforms of established treaties, rules, and procedures for protecting and incentivizing FDI flows.  ISDS is particularly under political attack.  A week on the front lines at UNCTAD, while not always fun, is something we need to do as a business community to be taken seriously in the global debates on investment policies, protections and procedures. I can’t say we carried the day but I hope we were able to give some of the serious, open-minded government representatives a few different perspectives on these important investment and SDG issues.  I emphasized that if the investment rules and procedures don’t work for business or aren’t perceived to fair and balanced, business isn’t going to invest. And no one wins.  If they truly are seeking productive solutions, governments and international organizations need to include business as a true partner in these investment policy debates and decision-making. Frankly, at this point, the jury is still out on whether that will really happen as governments consider moves to revise or replace investment long-established agreements. But we at USCIB intend to continue speaking up assertively on these important issues.”

Hampl Emphasizes Importance of Foreign Investment at OECD

Published on October 29, 2018

 

USCIB Senior Director for Investment, Trade and Financial Services Eva Hampl was in Paris last week participating in investment and trade related meetings at the OECD October 23-24. Hampl had a speaking role in every meeting, sharing business views, opportunities and concerns. Hampl’s speaking engagements kicked off with the Business at OECD consultation with the OECD Investment Committee. Business at OECD had submitted three short papers on issues of important to business in investment, covering issues such as investment policies related to national security, the importance of a well-designed investment protection mechanism and foreign direct investment qualities.

“We underlined the issue of global value chains and the rules-based trading system, specifically on the importance of strong investment protection mechanisms (ISDS), particularly in light of recent developments to erode those protection for many industries,” said Hampl. “The evening prior, we had an open and frank discussion with the Head of Investment in the OECD Secretariat, as well as the Chair of the OECD Investment Committee, which provided another opportunity to raise our various issues of concern in a more informal setting.”

Hampl also attended a joint meeting of the OECD Trade and Investment Committees, which included a presentation on the OECD Digital Services Trade Restrictiveness Index (STRI) by the OECD. At the consultation, Hampl made an official intervention on behalf of Business at OECD, expressing USCIB’s support of the joint meeting, and raising some of USCIB’s priority issues, including the multilateral trading system (WTO reform), state-owned enterprises, and digital trade.

Additionally Hampl served as a discussant on behalf of Business at OECD at a Policy Network Meeting on the Foreign Direct Investment (FDI) Qualities, during which she expressed general support for the project and underlined the importance of investment. According to Hampl, the draft paper is quite good already, specifically stating that it is not attempting to categorize between good and bad investment, and is focused on measurable outcomes. 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.

 

USCIB Notes Importance of Free Data Flows for Economic Growth

Published on October 29, 2018
Eva Hampl (USCIB)

The OECD hosted its annual Global Forum on Trade on October 22 in Paris, 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.

USCIB Senior Director for Trade, Investment and Financial Services Eva Hampl participated in the event as a panelist in the session on data flows. Her fellow panelists included Deputy Assistant USTR for Telecommunications Policy Jonathan McHale, Head of Unit, Services, DG Trade Christophe Kiener, and Senior Policy Advisor, European Digital Rights Maryant Fernandez Perez. The session was moderated by OECD’s Julia Nielson, head of the emerging policy issues division. After a brief introduction from Nielson, OECD Trade Policy Analyst Javier Lopez Gonzalez set the scene by providing the audience with a short factual presentation on some of the key issues on data flows from a trade point of view.

“Free flow of data and information is critical for economic development and growth, and that data should be allowed to flow across borders in a secure manner,” said Hampl. “The free flow of data is now a central part of global value chains and a major requirement for a wide range of manufacturing and services industries. Consultation with business in the regulatory process is key in avoiding detrimental and counterproductive effects of problematic localization measures.”

“Looking forward, useful work in international forums includes continuing to address these issues in the G20, progressing the WTO E-Commerce initiative, and the OECD playing an important role not only in defining and quantifying these important issues, but also educating particularly non-OECD countries about the value of free data flows,” she added. Most of the panelists agreed that a fragmented approach is not sustainable.

The day-long event that focused on digital trade included engaged discussion in virtually every session, showing just how important this issue is to many countries. The OECD recognizes this issue as a key priority, and has several active work streams in this space.

Donnelly Talks USMCA Investment Developments at Sidley Austin Panel

Published on October 23, 2018
An impressive audience of trade and law experts from around Washington attended and peppered the panel with questions.
Early reactions to the new USMCA agreement included questions and criticism in business circles that the new pact seems to reduce well-established investment protections, especially ISDS arbitration procedures to settle disputes.

 

USCIB Vice President for Investment and Financial Services Shaun Donnelly joined senior officials of the Canadian and Mexican embassies in Washington on a panel on “What Does NAFTA 2.0 Mean for Investor Protection in North America and Beyond?”  The session was hosted by a leading Washington law firm, Sidley Austin, and co-sponsored by the American Society of International Law.

An impressive audience of trade and law experts from around Washington attended and peppered the panel with questions. Both the Embassy officials, Minister Counselor form the Canadian Embassy Colin Bird and Mexico Embassy Counselor Aristeo Lopez Sanchez, had been intimately involved in the long-running NAFTA/USMCA negotiations on the Investment Chapter. Early reactions to the just announced new USMCA agreement has included many questions and some criticism in business circles that the new pact seems to reduce well-established investment protections in the NAFTA, especially the Investor-State Dispute Settlement (“ISDS”) arbitration procedures to settle disputes between foreign investors and host government. According to Donnelly, the discussions and questions at the panel were very detailed and candid.

“I thought we had an excellent and very candid discussion,” said Donnelly. “The two Embassy experts were outstanding and very knowledgeable. The moderator, Sidley Austin Partner Marinn Carlson, did a great job of setting the context and focusing the session on specific provision of the new USMCA. I appreciated the opportunity to represent broad U.S. business views, questions, and concerns. We at USCIB and our member companies are currently trying to dig into the detailed provisions on the USMCA on investment and other important chapters. This Sidley/ASIL session really helped me to both get more detailed information from the government experts and to lay on the table some important questions and concerns we in the business community are looking at.  It was an excellent session.”

Donnelly Talks Trade, NAFTA and USMCA in Vancouver

Published on October 22, 2018
Shaun Donnelly
Donnelly provided a Washington perspective on North American and global trade issues, focusing on NAFTA and its successor agreement, the U.S. Mexico Canada Agreement (USMCA).
USMCA is front page news across Canada so audience interest was high for Donnelly’s candid presentation.

USCIB Vice President for Investment and Financial Services Shaun Donnelly traveled to Vancouver, Canada the week of October 15 to deliver a keynote speech at the annual gala dinner of the Pacific chapter of the American Chamber of Commerce in Canada (AmCham Canada). Donnelly provided a Washington perspective on North American and global trade issues, focusing on NAFTA and the just-agreed successor agreement the United States Mexico Canada Agreement (USMCA).  USMCA is front page news across Canada so audience interest was high in Donnelly’s candid presentation and in the after-dinner panel discussion he joined along with former Canadian Minister of International Trade Stockwell Day and two prominent local business figures.

While in Vancouver, Donnelly was also the guest of honor at a reception for local political and business leaders hosted by the U.S. Consul General. Donnelly offered ten minutes of informal comments with a business perspective on the Washington and regional trade policy scene. Again, NAFTA and its putative successor USMCA were the main topic of interest.

Donnelly said it was a very useful trip. “Throughout my long Foreign Service career, I’ve always really enjoyed working with AmCham chapters around the world,” said Donnelly. “It was great to connect with the new Vancouver-based Pacific chapter of AmCham Canada. They are a great group! We had an really excellent exchange on the new USMCA and the path, or paths, ahead. Canada has long been a special partner for the U.S. in trade and investment and in so many areas.  USCIB and our member companies are committed to strengthening business ties across North America.”

Trump Nominates US Ambassador to UN in Geneva

Published on October 22, 2018
Trump nominated Andrew Bremberg to be the next Representative of the U.S. to the UN in Geneva with the rank of Ambassador.
Bremberg currently serves at the White House as special assistant to the President and director of the Domestic Policy Council.
Bremberg served as aide to Senate Majority Leader Mitch McConnell and Wisconsin Governor Scott Walker.

In late September, President Trump nominated Andrew Bremberg to be the next representative of the U.S. to the United Nations and other international organizations in Geneva with the rank of Ambassador.  Bremberg currently serves at the White House as a special assistant to the President and director of the Domestic Policy Council.

Bremberg earlier served as an aide to Senate Majority Leader Mitch McConnell and the Wisconsin Governor Scott Walker.  Like all Ambassadorial nominees, Bremberg must be confirmed by the U.S. Senate before taking up his assignment in Geneva.  He will replace Ambassador Pamela Hamamoto, who departed the post in January 2017.  Since that time, the Deputy U.S. Representative, originally Ted Allegra, was recently replaced by Marc Cassayre as charge d’affaires.

USCIB has long worked very closely with the U.S. Mission in Geneva, including with the Ambassador, on a range of important issues in organizations such as the International Labor Organization (ILO), the World Health Organization (WHO), the World Intellectual Property Organization (WIPO), the International Telecommunications Union (ITU) and the UN Human Rights Commission. As the sole U.S. business organization with official status in these and other international organizations, USCIB is an important partner for the U.S. Government on a broad range of important and challenging issues for American business.

“Getting a new U.S. Ambassador nominated, confirmed and on the job in Geneva will be an important development, said USCIB CEO & President Peter Robinson.  It’s now been nearly two years since there has been an Ambassador in that post. “The U.S. Mission has been very active and effective in the interim and has been a great partner for USCIB and for American business.  But it’s always great to have a new Ambassador there to lead the effort. The fact the President tapped one of his own senior White House Assistants for this job is encouraging as a demonstration of the importance the Administration assigns to this particular post in Geneva. I look forward to getting to know Andrew Bremberg and to doing anything we at USCIB can do to help him and his team succeed in their important efforts.”

USCIB Hosts U.S. Chargé to OECD Andrew Havilland

Published on October 16, 2018
Acting Head (“Chargé d’Affaires”) of the U.S. Mission to the OECD Andrew Havilland speaks with USCIB members
Havilland reviewed OECD activities and upcoming challenges, cooperation of both the U.S. Mission and the sprawling OECD structures with Business at OECD and ways to strengthen those government/business links.
USCIB will be organizing a parallel session for Nan Fife and her “OECD desk” team from state to meet with member companies.

Two dozen USCIB member companies met with Andrew Havilland, acting head (“chargé d’affaires”) of the U.S. Mission to the OECD on October 11 at USCIB’s Washington office. In a wide-ranging hour-long give and take, Havilland reviewed OECD activities and upcoming challenges, cooperation of both the U.S. Mission and the sprawling OECD structures with the Business and Industry Advisory Committee to the OECD (Business at OECD) group and ways to strengthen those government/business links.

Access for Business at OECD members to some important OECD committees was highlighted as an important ongoing problem.  Digital trade, tax, health, and competition policy remain important priority areas for USCIB member companies.  OECD work on “Illicit trade” is also an area of growing interest for member companies.  And accession of new member countries to the OECD, both the process and potential individual candidate countries remain very important issues for many member companies.  Member companies were appreciative of the support they are getting from Havilland’s U.S. Mission team in Paris.

Nan Fife, the newly-arrived office director of the Economic Policy and Public Diplomacy (EPPD) Office in the State Department’s Economic and Business Bureau (EB), the “desk” coordinating U.S. Government policy toward the OECD, accompanied Havilland to the session and chimed in, encouraging USCIB and member companies with interests or concerns on OECD issues to work with her and her team as well as relevant Washington agencies.  USCIB will be organizing another parallel session for Fife and her “OECD desk” team from state to meet with member companies.

USCIB Vice President for Investment Policy and Financial Services Shaun Donnelly, who moderated the session, praised Havilland for making time to meet with business and for his “expertise, candor, and open door for business. “USCIB really appreciates Andrew Havilland and the entire team at the U.S. Mission to the OECD,” said Donnelly. “They have been great partners on a range of important issues around the OECD for USCIB and for BIAC.”        

 

Pamela Bates Nominated as US Ambassador to OECD

Published on October 16, 2018
Pamela Bates
Photo source: Securitas Global Risk Solutions

On September 24, President Donald Trump officially nominated Pamela Bates to be next U.S. Permanent Representative to the Organization for Economic Cooperation and Development (OECD) in Paris. If confirmed by the U.S. Senate, Bates would replace Ambassador Daniel Yohannes, who departed the post in January 2017.  In the interim the U.S. Mission to the OECD had been capably led, first, by Peter Haas, and currently by Andrew Havilland as Chargé d’Affaires.

Bates is awaiting a confirmation hearing in front of the Senate Foreign Relations Committee.

Bates has considerable experience as a State Department Foreign Service Officer (FSO) specializing in economic policy work and including a tour of duty on the staff of the U.S. Mission to the OECD which she is now being nominated to head.  USCIB CEO and President Peter Robinson welcomed her nomination.  “We at USCIB are delighted to see the nomination of an experienced economic policy maker to be the next U.S. Ambassador at the OECD,” said Robinson. “USCIB works closely with the OECD as the sole U.S. business affiliate of the OECD’s Business and Industry Advisory Committee (Business at OECD).  We and our member companies have worked closely with previous U.S. ambassadors and their staffs and look forward to continuing that close cooperation with Pamela Bates once she is confirmed and on the job in Paris.”

USCIB Vice President for Investment Policy and Financial Services Shaun Donnelly, himself a retired State Department economic officer and former Ambassador, added, “I’ve known Pam Bates from our time together at the State Department and am confident she’ll do an excellent job representing our Government at the OECD and leading the U.S. Mission.  She comes to this important post well prepared.”

Bates served for 24 years as a career member of the United States Foreign Service before assuming her current role as a partner at Securitas Global Risk Solutions in Wayne, Pennsylvania, in 2017.  While with the State Department, Bates’ assignments included service as deputy director of the Economic and Commercial Studies Division for the National Foreign Affairs Training Institute in Arlington, Virginia, and as the senior energy advisor at the United States Mission to the Organization for Economic Cooperation and Development in Paris, France.  She also served in the State Department’s Bureau of Economic and Business Affairs.  Ms. Bates earned her AB degree from Bowdoin College, her MA from John Hopkins University School of Advanced International Studies, and her MBA from the Wharton School of the University of Pennsylvania.  She speaks French, Spanish, Portuguese, and German.

At B20, Argentina’s President Notes Crucial Role of Business

Published on October 9, 2018
Argentina’s President Mauricio Macri
The annual B20 process provides a platform for the international business community to participate in global economic governance.
The set of actionable recommendations will be submitted for consideration by heads of state at the G20 Summit in late November.

 

Argentina hosted the B20 Summit October 4-5 in Argentina, gathering business leaders of B20, government representatives and members of international organizations. Among them was International Chamber of Commerce (ICC) Secretary General John Denton. Denton led a high-level panel on “Infrastructure + Energy: Two powerhouses for development”.

The annual summit, organised this year under the stewardship of G20 host country Argentina, provided an opportunity for Denton and selected business leaders to meet with Argentine President Mauricio Macri, who addressed the group at the Casa Rosada Museum in Buenos Aires.

Formally receiving the group’s recommendations to G20 leaders during the closing session of the Summit, Macri said, “Global solutions require the commitment and action not only of governments but also of all the sectors of society, including the business community. Companies are important in the process of dialogue and consensus building.”

The set of actionable recommendations will be submitted for consideration by heads of state at the G20 Summit in late November.

The annual B20 process provides a significant platform for the international business community to participate in global economic governance, and supports the work of the G20 by hosting focused policy discussions and developing recommendations geared towards strong, sustainable and balanced growth in the global economy.

Hampl Voices China Concerns in Public Testimony

Published on October 9, 2018
USCIB Senior Director for Investment, Trade and Financial Services Eva Hampl provided testimony on October 3 to the interagency Trade Policy Staff Committee.
Hampl took the opportunity to speak about China 301 tariffs, noting how disruptive they are to U.S. business.

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

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

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

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

USCIB also submitted extensive written comments.