Trade and Investment Archives

OECD Week Addresses Global Challenges with Business Input

Published on June 12, 2017

 

Peter M. Robinson at OECD Week in Paris

USCIB President and CEO Peter Robinson was in Paris last week for OECD Week, which tackled issues such as international tax rules, globalization challenges and anti-trade rhetoric. Addressing Ministers of Finance and Foreign Affairs at the OECD Ministerial Council Meeting on June 7, Business at OECD (BIAC) Chair Phil O’Reilly called on governments to address the challenges of strengthening growth and boosting economic participation, emphasizing that “ultimately societies can only support economic openness, when it is accompanied by appropriate domestic policies to prepare people for change, with better skills and more opportunities for economic participation.” O’Reilly drew upon principles highlighted in the recently released Business at OECD 2017 Statement to Ministers, which contains the core business recommendations to strengthen open economies and inclusive societies. This paper is a call to action for OECD governments to implement a comprehensive competitiveness agenda, and also better engage with the public, especially regarding the opportunities that come with trade and investment.

In a similar statement, Business at OECD Secretary General Bernhard Welschke encouraged governments to better address an increasing anti-trade rhetoric in OECD countries, highlighting that “both business and trade unions have a responsibility to communicate in a fair, balanced, and responsible manner.” Also speaking at the session on International Trade and Investment for the Benefit for All, Business at OECD (BIAC) Vice Chair and USCIB Board member Charles R. Johnston (Citi) encouraged governments to counteract on protectionist action in the form of growing non-tariff barriers, and pointed to areas where new OECD work would help better inform this debate. Business also emphasized that governments should fully use the OECD Investment Restrictiveness Index and implement the Policy Framework for Investment.

On international tax policy, Business at OECD (BIAC) was present at the official signing ceremony for the Multilateral Convention to Implement Tax Treaty Related Measures (MLI) to Prevent Base Erosion and Profit Shifting (BEPS), which took place at the OECD Ministerial Council Meeting. The MLI opens the door to changes in the tax treaty process, and to a number of key international tax rules, that are significant. Concurrently, USCIB and the OECD were holding their 12th annual international tax conference in Washington DC, which brought together over 300 tax policy experts.

Robinson Signs B20 Recommendation on Investment in Africa

Published on June 9, 2017

The B20 recommendations Boosting Investment in Africa- Towards Inclusive Compacts in Africa have been signed in Berlin by the majority of the B20 taskforce and cross-thematic group Chairs and Co-Chairs, including USCIB President and CEO Peter M Robinson, who serves as Co-Chair of the B20 Employment and Education Taskforce. Robinson also recently attended the B20 Summit in Berlin in May. The Partnership with Africa is one of the key priorities in the German G20 presidency, as well as in the B20.

The B20 Secretariat offered these recommendations to the press and B20 Chairman Jürgen Heraeus introduced the recommendations at the G20 Africa Partnership – Investing in a Common Future Conference. BDI, the pre-eminent German business group, hosted the event as a partner within the framework of the Sub- Saharan Africa Initiative of German Business (SAFRI) on June 12 in Berlin.

The “African Economic Outlook” is an annual report produced by the African Development Bank (AfDB), the OECD Development Centre and the United Nations Development Programme (UNDP). Speakers at the African Economic Outlook will include President of the Republic of Rwanda S. E. Paul Kagame, State Secretary in the Federal Ministry for Economic Cooperation and Development Thomas Silberhorn and Secretary-General of the OECD Ángel Gurría.

Business at OECD Gears Up for OECD Ministerial Council Meeting

Published on June 2, 2017

Business at OECD (BIAC) will be hosting executive leadership, including USCIB’s President and CEO Peter M. Robinson, and Citi’s Rick Johnston, USCIB board member and BIAC vice chair at their General Assembly in Paris this week. Business at OECD will also participate in the OECD Ministerial Council Meeting, which will bring together economy, finance and trade ministers from OECD countries to discuss strategic orientations for the coming years under the theme “Making Globalization Work.”

Business at OECD will provide guidance to OECD and governments on addressing the challenges of strengthening growth and boosting economic participation, drawing upon its 2017 statement to Ministers, which includes recommendations on:

  • Support a better business environment and map competitiveness
  • Create the conditions to benefit from trade and investment on a level playing field
  • For growth and investment, ensure good governance and predictable tax policies
  • Increase participation by promoting the skills and competencies to thrive in the digital era
  • Focus on entrepreneurship

USCIB Statement on U.S. Withdrawal From the Paris Climate Agreement

Published on June 2, 2017

New York, N.Y., June 1, 2017 – The United States Council for International Business (USCIB), which represents America’s most successful global companies, issued the following statement on U.S. withdrawal from the Paris Climate Agreement:

“Like many others in the U.S. business community, USCIB is disappointed by the news that the Trump administration has elected to leave the Paris Climate Agreement. In our view, this decision could leave U.S. companies unprotected and exposed to possible discrimination under the Paris Agreement if the U.S. government is not at the table.

“The Paris Agreement is redefining global markets for energy and environmental goods and services, as well as providing major economic stimuli for companies. U.S. energy security and access were never threatened by the Paris Agreement, which allows each national government to define its own climate action plan. Moreover, the U.S. stands to benefit from trade and investment opportunities that the Paris Agreement will set in motion.

“We are interested to learn more about how the U.S. will pursue new arrangements while remaining in the UN Framework Convention on Climate Change. While it does so, we encourage the U.S. to stay involved on behalf of U.S. economic interests, and to bring U.S. solutions to this crucial global effort. We encourage the administration to reform areas of the UN climate framework toward more fair, transparent and balanced approaches that are responsive to U.S. circumstances and aspirations.

“USCIB members are committed to advancing sustainable development and environmental solutions through international cooperation, and have supported the UNFCCC and the Paris Agreement since their inception. Multilateral forums and cooperative approaches are the best way to address the transboundary challenges of energy access and innovation, climate change and sustainable development. In close coordination with our global business partners, including the International Chamber of Commerce (ICC) and the Major Economies Business Forum (BizMEF), USCIB will continue to champion U.S. business interests in the UNFCCC, and will seek opportunities to promote U.S. environment and energy solutions through business engagement and implementation, and to broadly deploy climate-friendly investment and innovation.

“USCIB has represented U.S. business interests in the UN climate negotiations for over 25 years, and during that time has benefited from the diligent efforts of U.S. government representatives at the table to advance and defend U.S. business interests, often under challenging conditions. We express thanks to the current U.S. climate negotiating team, and others with whom we have worked, for their extraordinary efforts on our behalf.”

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. As the U.S. affiliate of several leading international business organizations, including ICC, 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
Tel: +1 212 703 5043
jhuneke@uscib.org

USCIB Weighs in With Treasury Secretary on Multinational Tax Rules

Published on May 30, 2017

USCIB and other industry groups are urging the Trump administration to push back against efforts in the G20 and other multilateral forums to circumscribe the U.S.’s ability  to tax overseas income of U.S.-based multinationals. USCIB, along with the Information Technology Industry Council (ITI), National Foreign Trade Council (NFTC) and U.S. Chamber of Commerce sent a joint letter to Secretary of the Treasury Steven Mnuchin requesting that the Trump administration take immediate action to ensure that tax principles that would adversely affect U.S.-based multinational companies and the rights of the United States to tax the income earned by such companies are not encouraged or endorsed by international bodies focusing on taxation rules, particularly those applicable to businesses operating in the digital economy.

The letter, in part, responds to the G7 Finance Ministers Communique on taxes which was released on May 13.  The multi-association letter urges the Treasury not to make any new commitments on taxes.  The letter also urges caution on expanding G20 commitments.  It also urges the Treasury to nominate a delegate to the UN Committee of Tax Experts stating that it is important to have a U.S. voice on this committee.  USCIB has learned that Treasury now intends to nominate a delegate to the UN Committee of Tax Experts.

The letter stated, “considerable pressure has been applied by other countries to modify the existing international framework of taxation laws in a way that would enhance the taxation rights of other countries at the expense of the United States and its interests. We are concerned that recently proposed “special measures” targeted at the digital economy, could reduce tax payments to the United States by U.S.-headquartered international companies and disadvantage U.S. companies attempting to compete overseas by increasing their tax obligations to the jurisdictions that adopt such measures.”

USCIB, Keidanren Discuss Trade and Investment

Published on May 30, 2017

USCIB’s Senior Vice President for Policy and Government Affairs Rob Mulligan and USCIB’s Director for Trade, Finance and Investment Eva Hampl recently attended a dinner hosted by Keidanren, Japan’s leading business group. Mulligan and Hampl joined Keidanren’s delegation of over 40 business leaders to discuss trade, investment and the mutual interests and areas of partnerships shared by USCIB and Keidanren. 

Mulligan gave a brief presentation on the role USCIB plays and highlighted areas where USCIB and Keidanren have worked together in the past. In addition to commenting on NAFTA, Brexit, WTO and China, Mulligan discussed comparable affiliate roles at BIAC and IOE as well as the joint work USCIB and Keidanren have done together such as the op-ed last year on the Trans Pacific Partnership and the recent China letter on cybersecurity. Mulligan also touched upon Keidanren and USCIB’s partnership with regards to the Major Economies Business Forum (BizMEF) and the extensive collaboration between USCIB and Keidanren on climate change.

“USCIB greatly appreciates our productive partnership with our Japanese colleagues at Keidanren and we look forward to strengthening our ties on trade and investment issues,” said Mulligan.

Robinson Joins 200 Business Leaders in Letter on International Affairs Budget

Published on May 30, 2017

Ahead of the release of President Trump’s 2018 proposed budget that is looking to cut up to 31 percent of the State Department and USAID budget, USCIB’s President and CEO Peter M. Robinson joined over 200 business leaders in sending a letter to Secretary of State Rex Tillerson. The letter urged Tillerson to strongly support the State Department and U.S. Agency for International Development Budget.

The letter emphasized the importance of partnerships between the private sector and these agencies, noting that these agencies catalyze and leverage private sector expertise and resources to create sustainable solutions at scale on a range of challenges such as energy, health, and agriculture.

“America’s global economic leadership also embodies our country’s values – promoting economic freedom, prosperity, and entrepreneurship that can mitigate the drivers of violent extremism in the world today. In today’s global economy, we have significant opportunity to strengthen the State Department, USAID, and our development agencies and the capacity to partner with the private sector to address global challenges and to expand opportunity,” stated the letter.

The letter was also covered by CNN Money and the Wall Street Journal (subscription log-in required).

USCIB Delivers Statement on Trade Deficit at Commerce

Published on May 22, 2017
Eva Hampl delivers testimony on behalf of USCIB at U.S. Department of Commerce

As the Trump administration seeks to reorient U.S. trade policy toward bilateral agreements, bilateral trade deficits have been put forward as a marker of the health — or lack thereof — of U.S. commercial relations with a given country. USCIB has taken up this issue in a recent statement to the Department of Commerce, as well as a public testimony that was delivered by USCIB’s Director for Investment, Trade, and Financial Services Eva Hampl on May 18 at the Department of Commerce.

In her testimony, Hampl emphasized USCIB’s view that trade deficits are a product of broader macroeconomic factors, not trade policy, and that the trade balance should not be viewed as a straightforward indicator of a country’s economic health. “While it is useful to address trade barriers that impede access for U.S. goods and services exporters to specific markets, we should not set up bilateral trade balances as the metric of successful trade policies,” she said.

Hampl concluded with 5 USCIB recommendations for the Administration:

  • Examine the trade deficit within the broader set of macroeconomic factors that determine it and include all elements of trade in the analysis, instead of focusing solely on bilateral manufactured goods trade balances.
  • Work with experts around the U.S. Government, international organizations, and academia to get the best data possible to guide the best policy making. We need much better measurements of real trade flows and value added, including in complex global supply chains and in services. We also need better data on FDI flows, both inward and outward.
  • Move aggressively to open foreign markets, and identify and combat foreign trade barriers to increase U.S. exports and improve our trade balance. We support the use of appropriate enforcement tools including the WTO, bilateral and regional trade agreements, U.S. trade laws, and efforts to open those markets and to combat illegal foreign subsidies and dumping into the United States.
  • Accelerate U.S. Government “commercial diplomacy” efforts to support U.S. companies competing to win deals overseas.
  • Reform the U.S. Government’s economic policies, including tax reform, regulatory reform, and energy development, to bolster the competitiveness of our firms, allowing them to win more and bigger deals overseas.

 

USCIB Meets With Secretary of Labor Acosta and Other U.S. Officials at CBP and State

Published on May 18, 2017
L-R: Chair of USCIB Customs Committee, Jerry Cook (Hanesbrands), Acting Commissioner Kevin McAleenan (U.S. Customs and Border Protection) and Peter Robinson (USCIB)

USCIB President and CEO Peter M. Robinson  was in Washington earlier this month for several high-level meetings with key U.S. government officials, including one with the new Secretary of Labor Alexander Acosta. Robinson was joined by USCIB’s Senior Vice President for Policy and Government Affairs Rob Mulligan and USCIB Senior Counsel Ronnie Goldberg. The meeting focused on preparations for the G20 Labor and Employment Ministers meeting in Bad Neuenahr, Germany, as well as the Global Employers Summit and “B20/L20” dinner meeting the day before. Robinson raised the recent recommendations of the B20 Labor and Employment taskforce on which he serves as a Co-Chair.

Acosta and USCIB’s representatives discussed ways to highlight U.S. government and business leadership in Business at OECD’s work on women’s participation in the workforce, as well as the ILO’s work on apprenticeships. “We look forward to working with Secretary Acosta on these and other important issues for our members and invited him to speak to our Corporate Responsibility and Labor Affairs Committee in the fall,” said Robinson. USCIB also teamed up with the Department of Labor to support a social media campaign around the G20 labor ministerial on how governments can do a better job of matching training and skills development with the needs of employers.

Robinson also met with Acting Commissioner of U.S. Customs and Border Protection Kevin McAleenan, who has been nominated by President Trump to serve as commissioner. Robinson was joined by USCIB staff and several member company representatives including the chair of the USCIB Customs Committee, Jerry Cook, who is vice president for government and trade relations at Hanesbrands. “USCIB expressed strong support for the work of CBP and its team, noting USCIB’s longstanding engagement with CBP on customs policy issues as well as the ATA Carnet program—a unique relationship as a business partner covering policy and operations,” said Megan Giblin USCIB’s director for customs and trade facilitation. During the meeting, USCIB member representatives identified various issue areas of concern related to customs valuation, implementation of the WTO Trade Facilitation Agreement, engagement with the work of the World Customs Organization, and continued progress and eventually closure on ACE, forced labor, e-commerce, and more. Acting Commissioner McAleenan said he is committed to working closely with USCIB in pursuing his goals for CBP as well as working with us to address our objectives.

Finally, Robinson also met with Acting Assistant Secretary of State for Economic and Business Affairs Patricia Haslach. A number of member companies again joined the USCIB team for this meeting to discuss a range of concerns with the attitudes of many international organizations towards business engagement and the need for the U.S. government to counter some of the negative trends. USCIB Vice President Norine Kennedy, calling in from the UN climate change meetings in Bonn, noted the mounting effort by NGOs and some governments to exclude business from the climate change talks. Others noted that these efforts are following on from policies adopted at the World Health Organization last year to limit business participation in health-related policy discussions. The discussion also covered recent UN work on access to medicine and World Bank efforts to foster national networks instead of working with the private sector on payment systems. Ambassador Haslach promised to work with USCIB in tackling these issues. “To be effective, it will be critical that the U.S. government is part of the discussions at these international organizations,” noted Robinson.

Industry Appeals to China on Cybersecurity Law

Published on May 15, 2017

With China’s broad cybersecurity law set to take effect next month, USCIB has joined with a range of industry groups from the United States and other countries in appealing for the country to delay its entry into force. Among other things, the new law would give law enforcement enhanced authority to access private data and require data to be stored servers located in China.

In a joint letter, the business groups said they are “deeply concerned that current and pending security-related rules will effectively erect trade barriers along national boundaries that effectively bar participation in your market and affect companies across industry sectors that rely on information technology goods and services to conduct business.”

The letter called on China to ensure that cybersecurity regulations comply with China’s World Trade Organization (WTO) commitments and encourage the adoption of international models that support China’s development as a global hub for technology and services.