Trade and Investment Archives

USCIB Submits Comments on China 301 Tariffs

Published on September 7, 2018
Tariffs of 10-25 percent are contemplated
Negative impact could exceed actual harm from Chinese trade abuses

On September 6, USCIB submitted extensive comments on the Trump administration’s 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,” the USCIB statement said. “Particularly if [the U.S. Trade Representative’s office] imposes 25 percent tariffs on this broad list of products, these tariffs will impact consumers and will severely impact U.S. competitiveness. The negative impact of such tariffs to U.S. consumers and industry appears disproportionate to the intended purpose.”

The statement said that, while China’s forced technology transfer requirements and other abusive practices harm U.S. competitiveness, the administration’s “sweeping tariffs endanger the U.S. economy in similar ways.” USCIB said its members are “very concerned that these proposed tariffs will stifle the U.S. economy, and not achieve the important goal of changing China’s behavior.”

The statement also recommended a number of changes to the list of tariffs being proposed by the administration. 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.

In August, USCIB Senior Director for Investment, Trade and Financial Services Eva Hampl provided testimony to the 301 Committee chaired by the U.S. Trade Representative’s office, expressing concern about the proposed tariffs’ potential unintended consequences.

Business Must Help Governments Chart New Course in Trade Policy, Writes ICC Secretary General

Published on September 6, 2018

ICC Secretary General John Denton published a letter in Financial Times on September 5 titled, “Let’s be constructive on trade and not just vent.” The letter responds to recent critique of a “muted response from U.S. chief executives to the ongoing escalation in global trade tensions,” particularly in response to President Donald Trump‘s threat to pull the U.S. out of the World Trade Organization (WTO).

“It is certainly true that there is an imperative for business to stand behind the multilateral trading system — now more so than ever,” writes Denton. “But I would suggest that the private sector has much more to offer than simply voicing its (well-founded) concerns. “Rather than adding fuel to the fire of an already polarized debate, business leaders must instead focus on helping governments chart a new course for trade policy-making that deals meaningfully with the pressures now building in the global economy. If tariffs are not the answer, then what are the alternatives? And how can the WTO, to use Mr Trump’s vernacular, best ‘shape up’ to avoid the U.S. shipping out?”

The full article can be viewed here. Member subscription required.

 

USCIB, USTR Discuss World Trade Organization Updates

Published on September 5, 2018
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 Expresses Dismay at Uncertainty Over NAFTA

Published on September 4, 2018

Washington, D.C., August 31, 2018 – The United States Council for International Business, which represents America’s most successful global companies, released the following statement regarding today’s announcement on modernization of the North American Free Trade Agreement:

USCIB has consistently stated that any NAFTA modernization must include all three countries. We are therefore disappointed to see the Administration notifying Congress of the conclusion of a trade agreement with Mexico that does not include Canada. As we and others in the business community – as well as other stakeholders and many in the Congress – have expressed on numerous occasions, the value of NAFTA is in its trilateral nature. The indication that Canada is an optional participant is extremely discouraging. We urge the Administration to pursue a final, modernized, comprehensive and high-standard NAFTA that includes Mexico as well as Canada, providing new and updated benefits to American businesses and workers.

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 several leading global business bodies, 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, USCIB
+1 212.703.5043, jhuneke@uscib.org

USCIB Statement on Announcement of U.S.-Mexico Trade Deal

Published on August 27, 2018

Washington, D.C., August 27, 2018 – The United States Council for International Business (USCIB), which represents America’s most successful global companies, released the following statement on the U.S.-Mexico trade deal announced today:

“USCIB is encouraged that the Trump Administration and Mexico have reached an agreement in principle to modernize NAFTA. Updating the 25-year-old agreement has been a priority for the U.S. business community. We look forward to seeing the details of the agreement and if they effectively address our members’ key issues and concerns. In this regard, we are troubled by indications that certain investor protections have been removed or reserved only for specific sectors.

“More broadly, we hope that an agreement on NAFTA signals a redirection of U.S. trade policy – away from confrontation and toward cooperative efforts to open markets abroad. Our members, and the American economy, prosper when we are tearing down barriers to cross-border trade and investment, not erecting new ones.

“We and our members are also very committed to the fundamental structure of NAFTA as a single trilateral agreement. We are looking forward to a completed, comprehensive, trilateral NAFTA modernization that addresses all of our issues and includes Canada.”

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
+1 212.703.5043 or jhuneke@uscib.org

Hampl Urges USTR to Remove Products from China Tariff List

Published on August 21, 2018
Hampl expressed concern about consequences proposed tariffs are likely to have on sectors vital to the U.S. economy and jobs
The Administration is also considering increasing tariffs to 25 percent.

 

With a new set of proposed tariffs on $200 billion worth of Chinese imports, USCIB has been actively advocating on the effect these tariffs will have on the competitiveness of U.S. companies. USCIB Senior Director for Investment, Trade and Financial Services Eva Hampl provided testimony to the 301 Committee chaired by the Office of the U.S. Trade Representative (USTR) on August 20, expressing concern about the potential unintended consequences these proposed tariffs of 10 percent are likely to have, affecting many sectors vital to the U.S. economy and jobs. The Administration is also considering increasing tariffs to 25 percent.

“If the USTR follows through on the President’s request to increase the level of the proposed tariffs to 25 percent on this broad list of products, the impact to U.S. competitiveness will be severe,” warned Hampl in her testimony. “USCIB strongly urges the Administration to consider the significant negative consequences to U.S. companies and American jobs before taking further action.”

Products that USCIB requested to be removed from the list of goods affected include parts in U.S.-made wind turbines, smart technology, goods using Bluetooth technology, standalone desktop computers, bicycles, patio furniture, electric lamps, travel goods, handbags, and many others. USCIB will submit written comments to USTR with further details on all the products that should be excluded.

“Many of the goods included in this new list are innovative products where the U.S. is an industry leader,” added Hampl. “Particularly for goods that are at the cutting edge of innovation and the future global economy, it is imperative for U.S. companies to remain highly competitive and innovative. Sweeping non-discriminatory tariffs will be very damaging, particularly if they are raised to 25 percent.”

With yet a new set of tariffs on China going into effect on August 23 on $16 billion worth of Chinese imports, USCIB has also been actively advocating that the U.S. Trade Representative’s (USTR) Section 301 exclusion process will remedy some of the potential negative consequences.

 

Donnelly Talks Trade and Diplomacy (and Soybeans) in Podcast Interview

Published on August 16, 2018
Shaun Donnelly
The “American Diplomat” series seeks to give listeners greater appreciation of the work done by American diplomats and public servants.
Host Peter Romero leads Donnelly through an informal discussion of the nuts and bolts of trade negotiations.

 

USCIB Vice President Shaun Donnelly is featured in a recent interview on the podcast “American Diplomat” demystifying trade policy and negotiations for listeners outside the beltway. The “American Diplomat” series is supported by the American Academy of Diplomacy, which counts among its members both Donnelly and USCIB Vice Chair Thomas Niles, longtime U.S. diplomats who each achieved the ranks of ambassador and assistant secretary. It seeks to give listeners around the country greater appreciation of the work done by American diplomats and public servants – in this case trade negotiators – to advance America’s, and Americans’, interests.

In the podcast interview, host Peter Romero (a retired U.S. ambassador and assistant secretary of state for the Western Hemisphere) leads Shaun through an informal discussion of the nuts and bolts of trade negotiations, with soybeans arising often as an example how any specific products factor into broad trade policy.

Donnelly claims to have enjoyed the discussion. “Over the years, I’ve done a fair number of speeches, panels and interviews trying to help build public understanding and support for an aggressive, pro-engagement, pro-growth trade policy, and have not always succeeded,” he noted with a self-deprecating chuckle. “I found this more informal, extended conversation format with Peter and his colleague Laura Bennett allowed more opportunity to get behind the sound bite, the bumper sticker and the talking point. Trade remains a complex, controversial and politicized topic these days. All of us who believe in open trade and investment policies need to keep reaching out to help build public understanding and support for common sense trade policies. I hope this sort of podcasts can make a modest contribution to the public discourse on trade.”

USCIB Represents Business at State Department Anti-Corruption Training

Published on August 13, 2018
Donnelly was the business community panelist at a State Department anti-corruption training session, “Tools and Strategies to Combat Corruption”
The session was an informal give-and-take on how U.S. embassies and consulates abroad can work with the private sector to combat bribery and corruption.

 

USCIB Vice President for Investment and Financial Services Shaun Donnelly was the business community panelist at an August 10 State Department anti-corruption training session during a week-long “Tools and Strategies to Combat Corruption” course for State Department officers headed overseas this summer.

The session, at State’s Foreign Service Institute in Arlington, Virginia was an informal give-and-take on how U.S. embassies and consulates abroad can work with the private sector to combat bribery and corruption. Donnelly was filling in for USCIB colleague Eva Hampl, who has participated in previous anti-corruption training sessions.

“I thought we had a very useful discussion of how U.S. business and local U.S. embassy staff members can cooperate on win-win efforts to combat corruption and bribery by local firms and government officials as well as third-country competitors,” Donnelly said. “Corruption anywhere is a cancer on governance and politics; it can also cost American businesses and workers a fair shot at winning major trade and investment deals. Business and government need to be full partners in combating this cancer.”

Congress Sends Revised “CFIUS” Foreign Investment Rules to President for Signature

Published on August 7, 2018

USCIB was very pleased to see both houses of Congress adopt (the House on July 25 and Senate a week later on August 1) as part of the compromise Conference Report on the overall 2019 “John McCain” National Defense Authorization Act (“NDAA”), some fundamental long-gestating revisions to the Committee on Foreign Investment in the U.S. (“CFIUS”) process for U.S. Government review of foreign direct investment (FDI) into the U.S.

Over the last year, Congress, the Administration and key stakeholders, including USCIB and the broad U.S. and international business communities, have been debating a wide range of potential major reforms to CFIUS.  Senator John Cornyn (R-TX) and Representative Robert Pittinger (R-NC) have taken the lead with their Foreign Investment Risk Review Mechanism (“FIRRMA”) bill but a wide range of possible revisions and reforms have been put on the table by various players on the Hill and beyond.

“Some of the proposed ‘reforms’, especially the idea that CFIUS should dramatically expand its remit to cover outward investment, joint ventures, licensing deals, and other innovative partnerships, were very troubling to us at USCIB and many member companies,” noted USCIB Vice President for Investment and Financial Services Shaun Donnelly. “USCIB and others in the business community raised fundamental objections to some of those more expansive proposals.”

In the end, according to Donnelly, the compromise “FIRRMA” provisions hammered out and included in the NDAA package seem a fair balance, strengthening CFIUS’s security overview of sensitive investment proposals, especially those in sensitive emerging technologies which also maintaining America’ commitment to open investment policies.

Donnelly endorsed the compromise FIRRMA provisions, stating, “We at USCIB commend the Congress and the Administration for the serious approach they’ve taken to these important investment security issues. We especially appreciate that the Treasury Department, other agencies, and many players in the Congress have all been open to a real substantive dialogue with business and other stakeholders on fundamental issues on investment security and business practices. We think they got the balance about right in the final compromise package, which is not easy.”

USCIB Gathers Stakeholders to Discuss E-Commerce Framework

Published on August 7, 2018

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.”