Trade and Investment Archives

World Investment Forum Looks at Leveraging FDI to Support Sustainable Development

Published on October 16, 2014
L-R Peter Robinson (USCIB) and Mukhisa Kituyi (UNCTAD)
L-R Peter Robinson (USCIB) and Mukhisa Kituyi (UNCTAD)

USCIB and the International Chamber of Commerce brought a pro-business, pro-investment perspective to the three-day World Investment Forum, which took place this week in Geneva.

Organized by the UN Conference on Trade and Development (UNCTAD), the biennial forum gathers heads of state, global CEOs and civil society leaders for dialogues on the world’s emerging investment-related challenges. This year’s event had a special focus on leveraging investment to support the UN’s Sustainable Development Goals (SDGs).

On Tuesday, the forum’s first day, ICC leaders and Mukhisa Kituyi, the UNCTAD secretary general, co-chaired the 11th meeting of the Investment Advisory Council. During the open discussion, Shaun Donnelly, USCIB’s vice president for investment and financial services, made a strong pitch for bilateral investment treaties and free trade agreements, which was echoed by a range of business and government representatives. ICC and USCIB Chairman Terry McGraw and ICC Secretary General John Danilovich spoke at the forum’s opening plenary, where they were joined by senior government officials.

Also on Tuesday, McGraw, Danilovich and USCIB President and CEO Peter Robinson met with Roberto Azevedo, the director general of the World Trade Organization, to discuss ways to restart the stalled Trade Facilitation Agreement. At the meeting Robinson thanked Azevedo for his leadership and said he looked forward to honoring him at USCIB’s annual award dinner in Washington, DC on November 19.

Mobilizing the Private Sector

On the forum’s second day, Robinson delivered plenary remarks, in which he discussed the four key elements that would crystallize private-sector support for sustainable development: good governance, economic growth, innovation and infrastructure. He noted that governments and businesses must work together to facilitate initial investments in least developing countries that lack basic infrastructure. Initial infrastructure funding can then help leverage further investments, leading to a “virtuous cycle.”  He also made the case for investment protection.

“Let’s continue the dialogue and partnership to harness investment as a key driver of economic, sustainable and inclusive development,” Robinson concluded. “And work together to create the virtuous investment circle, particularly in those countries that need it the most.”

Given the forum’s focus on investment for the SDGs, Robinson also emphasized that “taken together, open international trade and investment are important inter-related fundamentals and key drivers for engaging the private sector in achieving global economic growth that is inclusive, and environmentally and socially sustainable.”

On Thursday Robinson and Donnelly took part in key panel discussions on the role of bilateral and multilateral investment agreements and on investor-state dispute settlement (ISDS), where they spent over four hours defending investment agreements and ISDS in a morning-long Investment Agreement session, the centerpiece session during the final day of UNCTAD’s World Investment Forum.

With over 50 speakers limited to three-minute interventions, government and NGO representatives were often critical of investment agreements and ISDS in particular, whereas business voices were scarce. Robinson explained the overall importance of international investment agreements, while Shaun tackled the sensitive ISDS issue, emphasizing the need for effective enforcement measures to truly incentivize and protect FDI flows that are vital for economic growth, development and job creation. Donnely also highlighted USCIB’s strong opposition to any sectoral carve-outs from ISDS protections.

Although too many government participants opposed ISDS, Michael Tracton, director of the investment office at the U.S. Department of State, voiced support for strong investment agreements and ISDS, citing the high standards and balance of the USG’s Bilateral Investment Treaty and free trade agreement investment chapters.

Unfortunately, opposition to ISDS from NGOs has shown no signs of letting up. “USCIB will continue to confront these pressures internationally at forums like UNCTAD and in free trade agreement negotiations, voicing our strong support for common-sense, pro-business investment policies,” Donnelly said. “We will continue to leverage our international networks BIAC and ICC to mobilize international business support for these policies.”

Staff contact: Shaun Donnelly and Eva Hampl

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USCIB Meets with G20 and B20 Sherpas to Discuss Business Priorities

Published on October 13, 2014

4856_image001Ahead of next month’s Group of 20 (G20) Summit in Brisbane, USCIB met with representatives of the Business 20 (B20) and G20 on October 9 in Washington, DC to discuss the 2014 B20 recommendations and give USCIB members an opportunity to voice their priorities for achieving economic growth and job creation.

The B20 provides global business leaders with a forum for producing policy recommendations to be delivered at the annual G20 meeting, reflecting the key role the private sector plays as a driver of strong, sustainable growth.

Members of the USCIB Trade and Investment Committee and Customs and Trade Facilitation Committee met with Caroline Atkinson, the G20 Sherpa for the U.S. government, Sarp Kalkan, policy advisor at the Union of Chambers and Commodities Exchanges of Turkey and upcoming Turkey B20 Sherpa, and Robert Milliner, the Australia B20 Sherpa. Members broadly supported the B20 recommendations to the G20, which include focused proposals in the areas of trade, infrastructure, human capital, finance and transparency.

Milliner summarized the B20 recommendations and noted that they would play a big role in the G20 agenda coming out of the Brisbane Summit. Trade and infrastructure rank high on the B20’s priorities, and Milliner hoped that governments will agree to establish a proposed “infrastructure hub” that will share information among nations and increase transparency on infrastructure projects.

Atkinson appreciated how focused the B20 recommendations are and explained it is helpful for government leaders to see which reforms business feels would be useful to support growth and jobs. She suggested that U.S. business leaders communicate often with their counterparts in other countries to coordinate their priorities, and she noted that business must engage more often with labor. USCIB plays a part on both counts, through our affiliation with the International Chamber of Commerce (ICC) – the world business organization – and theInternational Organization of Employers.

Kalkan noted that during next year’s G20 Summit in Turkey, global infrastructure initiatives will remain at the core of the B20 agenda, as well as trade and investment policies that make it easier for emerging economies to attract foreign direct investment. On that note, the successful passage of the World Trade Organization’s trade facilitation agreement ranks high on the list of business priorities. The B20 also plans to do more work on small- and medium-sized businesses, helping to integrate them into global value chains and increasing their access to finance. Kalkan also noted that will be greater efforts to have the B20 and G20 interact more frequently over the course of the year.

At a similar event on October 8 in Washington, DC, ICC and the Center for Strategic and International Studies brought together Australian and U.S. government officials to discuss expectations for the Australian G20 summit in December.

“We intend to concentrate on advocating for the implementation of the existing stock of B20 recommendations,” Kalkan at the CSIS meeting. “We will do this through extensive consultations with G20 ministers, sherpas and business leaders.”

Staff contact: Robert Mulligan

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Ernst Young Partners with US State Department in Support of Women Entrepreneurs

Published on October 10, 2014

In early October, USCIB member Ernst & Young partnered with the Bureau of Information Resource Management’s Office of eDiplomacy at the U.S. Department of State for the Woman’s Entrepreneurship in the Americas Initiative. This public-private partnership will benefit women entrepreneurs in Colombia, El Salvador, Bolivia and Argentina.

The State Department announced the partnership on October 3:

On Thursday, October 2, the U.S. Department of State announced a new partnership between Ernst & Young (EY), a multinational professional services firm headquartered in London, and the Bureau of Information Resource Management’s Office of eDiplomacy at the Department of State. The partnership was sealed by signing a memorandum of understanding (MOU) outlining a public-private partnership that will directly benefit women entrepreneurs in four Latin American countries as part of the Women’s Entrepreneurship in the Americas Initiative (WEAmericas).

Under this new partnership, EY will contribute to the long-term impact of four interactive technology workshops called “TechCamps” which the Department will conduct over the next six months. The Bureau of Information Resource Management will manage the WEAmericas TechCamps in partnership with the Bureau of Western Hemisphere Affairs (WHA), the Secretary’s Office of Global Women’s Issues, and U.S. embassies in Colombia, El Salvador, Bolivia, and Argentina. These workshops will enable women entrepreneurs in those countries to make better use of technology to grow their businesses. EY-affiliated firms in each of the four countries will provide up to six months of business advice and mentorship to an entrepreneur selected from among the participants in each of the four events.

Read the full State Department media note.

Staff contact: Shaun Donnelly

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BIACs Continued Dialogue on Investment OECD Investment Consultation

Published on October 10, 2014

4855_image002The OECD plays a major role in highlighting the contribution of international investment to worldwide growth by advancing investment policy reform and international co-operation. Restrictions on FDI through various forms of investment protectionism can have significant adverse economic consequences for the global economic system and for job creation. In light of the highly competitive global environment, investors need adequate protection when making important investment decisions.

The OECD and its Freedom of Investment Roundtable have a key role to play in helping policy makers put in place a supportive business environment that eschews protectionist measures.

BIAC has urged the OECD to embark on an ambitious pro-active investment program and confirm the organization’s leading role in ensuring that markets are kept open for foreign investment, with a view to boost economic growth and foster job creation. BIAC looks forward to participating in the upcoming consultation with the OECD Investment Committee on October 15 to pursue its active dialogue in this area and to contribute to discussions on the update of the OECD Policy Framework on Investment (PFI). The PFI is an essential tool to assist governments engaged in domestic reform, regional co-operation or international policy dialogue on investment.

Staff contacts: Shaun Donnelly

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USCIB Leads Charge for Strong TTIP Investment Chapter

Published on October 3, 2014
Shaun Donnelly
Shaun Donnelly

Investor State Dispute Settlement (ISDS) took center stage at stakeholder forum of the U.S.-EU Transatlantic Trade and Investment Partnership (TTIP) negotiations on October 1, with anti-business groups strongly opposing ISDS amid activist protests and political criticisms on both sides of the Atlantic.

Shaun Donnelly, USCIB’s vice president for investment policy, led the defense of investment provisions, including strong dispute settlement rules.

Representing transatlantic business, Donnelly spoke out for strong investment provisions, including ISDS, following a political diatribe on the perceived evils ISDS from a local NGO. He argued that investment is critical to growth, competitiveness and jobs in the U.S. and EU and that foreign direct investment is vital to overall investment flows.

Donnelly debunked urban myths on investment and ISDS, arguing that strong investor state dispute provisions in TTIP are essential because they give foreign companies a fair hearing by a panel of experts, without which they would otherwise face discrimination in domestic courts. Investment provisions are also crucial for setting a good model for other bilateral and regional trade initiatives. Press reports highlighted Donnelly’s role in standing up for common sense, pro-business investment policies.

Staff contact: Shaun Donnelly

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Obama Reappoints USCIB Chairman to Advisory Committee for Trade Policy

The White House issued a press release on October 1 listing presidential appointees to key administration posts. Among them, USCIB Chairman Terry McGraw has been appointed as a member of the Advisory Committee for Trade Policy and Negotiations. McGraw is also chairman of the International Chamber of Commerce and chairman of McGraw Hill Financial [now S&P Global].

USCIB Urges Obama to Prioritize TFA

Published on October 1, 2014

4844_image001President Obama met with Indian Prime Minister Narenda Modi for the first time on September 30 to discuss U.S.-India relations.

Although trade issues accounted for a small part of their sessions, Modi reaffirmed India’s position in the struggle to implement the World Trade Organization’s Trade Facilitation Agreement, refusing to back down from his push to shield India’s food security programs from the TFA’s legal challenges. Both leaders were hopeful for a resolution to the impasse but made no firm commitments.

Prior to Modi’s meeting with Obama, USCIB joined other trade associations in signing a letter to President Obama urging the president to prioritize the TFA. The letter underscores the importance of the agreement and notes that India’s actions not only undermine the global trade system, but also call into question the future of WTO multilateral agreements.

“We were hopeful that during the Prime Minister’s visit, progress would have been made on the current impasse with India,” said Kristin Isabelli, director of customs and trade facilitation at USCIB. “It is vital that a path forward is found for the future and credibility of the WTO.”

USCIB signed the letter along with the Express Association of America, the National Foreign Trade Council and the National Association of Manufacturers.

WTO members signed on to the TFA last December as part of a package of trade reforms agreed to at the Bali ministerial. Once adopted, the TFA would streamline global customs procedures, committing developing and least developing countries to facilitate imports with aid from the developed world. The agreement is also estimated to add $1 trillion to the global economy and create 18 million jobs in developing countries. India stunned the international community when it blocked implementation of the TFA in July as it sought to leverage new concessions on food subsidies. WTO members have since failed to resolve the stalemate.

“With an agreement that would create millions of jobs and specifically help least developing countries and developing countries, it is highly disappointing that progress couldn’t be made on finding a solution to this impasse with India,” said Isabelli.

Read the letter.

Staff contact: Rob Mulligan and Kristin Isabelli

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Coalition for Green Trade Hosts Environmental Goods Agreement Launch Event on Capitol Hill

Published on September 19, 2014
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Ambassador Michael Froman speaks about the Environmental Goods Agreement as Senator Wyden and Congressman Blumenauer look on.

On September 17, 2014, the Coalition for Green Trade, co-chaired by the United States Council for International Business (USCIB), the National Association of Manufacturers (NAM) and the National Foreign Trade Council (NFTC), hosted an event on Capitol Hill to celebrate the launch of Environmental Goods Agreement (EGA) negotiations under the purview of the World Trade Organization (WTO) in Geneva.

The event featured comments by United States Trade Representative Ambassador Michael Froman, Senate Finance Committee Chairman Ron Wyden, House Ways and Means Committee Chairman Representative Dave Camp, and Representative Earl Blumenauer.

Chairman Wyden opened the event by saying, “[a]n ambitious environmental goods deal that brings down tariffs could make a real difference for American companies, American workers, and for the planet.”  He expressed support for the EGA initiative, noting that “with hard work by Ambassador Froman and his team,” the global economy and the environment can each benefit from the agreement soon.

Ambassador Froman said that by facilitating trade in environmental goods, “we can promote technologies that allow better access to safe water, sanitation, and clean energy. We can encourage countries to adopt strategies for sustainable development and help drive innovation that could lead to even cleaner technologies.” He also explained that the EGA represents an effort to simultaneously grow the global economy and protect our environment. “When it comes to defending our environment, protectionism is no protection.”

The Coalition co-chairs introduced the various speakers and provided their own comments in support of these important negotiations. Rob Mulligan, USCIB’s senior vice president for policy and government affairs emphasized the hope for a swift outcome and an agreement that will serve as a platform to spur technological innovation. “The support of the business community in these negotiations is crucial to ensure an ambitious agreement that captures the full range of environmental technologies and products,” he said, noting that some of those products were on display at the back of the room.

General Electric, for example, displayed information on their E- and F-class gas turbines which convert natural gas into power in plants all over the world.

He also introduced two industry representatives: Timothy J. Regan, senior vice president of worldwide government affairs at Corning, and Joe McSwiney, president of Cascade Designs, who presented their respective technologies that stand to benefit from a successful agreement.

For further information on the EGA, please read USTR’s Fact Sheet. For further information regarding USCIB’s efforts on the EGA, please contact Eva Hampl, Director, Investment, Trade and Financial Services.

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Realize TFA Benefits Without Delay ICC Tells Trade Negotiators

Published on September 18, 2014

4834_image002The International Chamber of Commerce (ICC) is appealing to trade negotiators, reconvening this week in Geneva, to find a way forward to implement the World Trade Organization’s Trade Facilitation Agreement (TFA) following the breakdown in talks in July.

Terry McGraw, ICC and USCIB chairman, said: “We urge WTO members to bridge the gap necessary to get the Trade Facilitation Agreement in place. There is no logic in delaying implementation of a deal that could add a possible $1 trillion to global GDP—generating millions of jobs in the process.”

July’s missed deadline came as a huge disappointment to the global business community, but ICC has emphasized that a deal is still possible in the weeks ahead.

McGraw added: “Despite the procedural impasse, we are still seeing many developing economies pressing ahead with plans to implement the agreement. This progress should not be forgotten and should drive momentum to make further progress in the coming weeks.”

An essential tool to boost cross-border SME sales

In a recent letter to trade ministers, ICC pointed out that trade facilitation reforms will enable many companies to trade internationally for the first time, particularly as the Internet opens up new market opportunities for small and medium-sized enterprises to connect with customers across borders.  Indeed, research suggests that improved border and customs measures could trigger a 60-80 percent increase in cross-border SME sales in some economies.

John Danilovich, ICC secretary general, said: “In the case of India, these benefits are especially clear. To take just one example, it is estimated that Indian companies currently suffer a 30 percent cost disadvantage compared to Chinese firms when shipping garments to the United States due to port and customs inefficiencies.”

Danilovich added: “Implementation of the TFA would place Indian firms on a much more even footing in the global marketplace—enabling many companies, particularly small enterprises, to trade internationally for the very first time.”

Opening the way for food security talks

Within the ongoing negotiations, the international business community fully recognizes the importance of reaching an agreement on the food security commitments contained in the Bali package.

“It is ICC’s view that legal adoption of the TFA would provide a conducive environment within the WTO to conclude a workable agreement on this vital issue in the coming months. Importantly, this would allow for discussions on remaining aspects of the post-Bali trade agenda,” said Danilovich.

“The TFA itself offers the potential to address related food security issues in view of provisions to ensure that perishable goods receive expedited clearance at borders.  These hard-won provisions—which would benefit many of the world’s poorest—risk being lost indefinitely if adoption of the TFA is deferred or delayed,” he added.

ICC has pledged unfaltering commitment to a strong, rules-based multilateral trading system embodied by the WTO and is dedicated to ensuring that global business plays an active and constructive role in working with WTO members to help strengthen WTO rules and adapt them to the needs of 21st century trading.

Staff contact: Robert Mulligan

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USCIB Urges Congress to Clear Ambassador Backlog

Published on September 15, 2014

American business leaders appreciate the support of United States embassies on commercial, investment and trade matters. U.S. business is concerned with the current backlog of ambassadorial nominees, since those embassy vacancies represent lost opportunities for American business and investment abroad.

USCIB joined the American Foreign Service Association, the Business Council for International Understanding and the International Stability Operations Association in signing a letter to Senate leaders urging them to swiftly confirm the career members of the Foreign Service for the ambassador positions for which they have been nominated. As of today, 37 career nominees for ambassadorships are awaiting confirmation in the Senate. USCIB and its partners called on the Senate to confirm all career nominees before they recess for mid-term elections.

Read the letter to Senate leaders.

Staff contact: Shaun Donnelly

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Exploring New Approaches To Trade Investment and Jobs Event Description

Published on September 8, 2014

ABOUT THE EVENT

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The OECD is recognized and respected by policymakers and business leaders around the world for its fact-based economic analysis and policy recommendations over a wide range of issues. OECD has developed international standards covering areas from agriculture and tax to the safety of chemicals.  But nowhere is the work of the OECD more critical than in the areas of trade and investment.  Governments know that unleashing private sector investment and trade is an essential driving force for economies to achieve inclusive, sustainable growth. They look to the work of the OECD in deciding which policies can most effectively open markets for their businesses.

As companies have adapted to political, technological and economic changes by creating global value chains to remain competitive, the pathbreaking work of the OECD on Trade in Value Added (TiVA) has been critical to understanding the policy changes needed to deal with this new reality.  As services have become an ever larger part of the global economy, the OECD Services Trade Restrictiveness Index (STRI) provides the information governments need to tackle services regulatory barriers in trade negotiations such as the Transatlantic Trade and Investment Partnership (TTIP) or the Trade in Services Agreement (TiSA).  The OECD works closely with business through the U.S. Council for International Business (USCIB) and Business and Industry Advisory Committee to OECD (BIAC) in gathering the data and understanding of business practices it needs to develop practical recommendations for government policies that will open up trade and investment .

The USCIB Foundation, BIAC and the OECD are jointly hosting a one-day conference in Washington, D.C. on October 30, 2014 to highlight the innovative work that OECD is doing in the areas of trade and investment and to discuss how this work impacts policy and trade negotiations around the world.  This program will bring together experts from OECD, U.S. and foreign governments, and business on global value chains, services trade barriers, investment agreements, trade facilitation, and the relationship between regional and multilateral trade negotiations.  Speakers will draw on OECD studies in discussing the current and future direction of global trade and investment policies.

This program will be taking place at a critical time for negotiations in the WTO, TPP, TTIP, and TiSA.  It will provide a unique opportunity for participants to gain insights into the policy challenges being addressed in these negotiations and the prospects for success in further opening global markets for trade and investment.