Trade and Investment Archives

Robinson Offers Ideas for WTO Reform at IOE-BIAC Meeting on Postponed WTO Ministerial

Published on March 9, 2022

The International Organization of Employers (IOE) and Business at OECD (BIAC) co-hosted an event on March 2 to follow up on the postponed World Trade Organization (WTO) Ministerial. The event, titled “Trade policy to recover and to achieve employment goals and greater resilience: How can an open trading system adapt to the new sustainability expectations?” included representatives of IOE and BIAC member organizations, such as USCIB President and CEO Peter Robinson, who gave remarks on the topic: “What is needed for WTO reform?”

In his remarks, Robinson pointed out that all three of WTO’s core functions are in crises—negotiation among WTO’s 164 members whose interests greatly diverge, monitoring trade rules and transparency among members, and dispute settlement—the WTO’s Appellate Body, paralyzed since the end of 2019 thus making WTO trading rights virtually unenforceable.

“These three fundamental functions must be redesigned, reconfigured, or reimagined to be fit for purpose,” said Robinson. He then cited a proposed bill, introduced by Senators Rob Portman (R-Ohio) and Chris Coons (D-Delaware), the “Trading Systems Preservation Act,” which could help reinvigorate the WTO by pushing for agreements that aren’t required to be observed on a most-favored nation basis. “On the issue of negotiation, we also support advancing a comprehensive WTO reform agenda that tackles special and differential treatment, distortive non-market industrial subsidies and state-owned enterprises.”

“USCIB would like to lend its voice in emphasizing the importance of the voice of business, among other legitimate stakeholders, at the WTO,” added Robinson. “While initiatives, such as the WTO Public Forum, are welcome opportunities to engage, all stakeholders in the multilateral, rules-based trading system would benefit from greater ongoing opportunities for dialogue – governments, civil society and the private sector alike.”

Other speakers joining Robinson during the meeting included WTO Deputy Director General Angela Ellard, who spoke about updates on the WTO agenda, Business at OECD Trade Committee Chair Pat Ivory, who discussed business priorities for WTO’s response to the pandemic, and the International Chamber of Commerce (ICC) Permanent Observer before the UN in Geneva Crispin Conroy, who shared perspectives on trade and environmental sustainability. Speakers from Keidanren, BusinessEurope and BEF discussed the importance of multilateral collaboration, digitization and strengthening inclusivity and sustainability in global trade.

This dialogue was a follow-up to last year’s launch of the “Business Coalition for Trade, Employment and Sustainable Enterprise,” led by IOE and including business organizations that share the belief that the multilateral, rules-based trading system has been a crucial driver not just for economic growth, but also for employment creation and sustainable development, which have played a key role in reducing poverty and raising living standard in many economies.

USCIB Supports Strengthening Trade, Investment, Economic Ties in Indo-Pacific

Published on February 23, 2022

USCIB was among a dozen other trade associations in submitting a letter to the Biden Administration welcoming the launch of the Indo-Pacific Economic Framework (IPEF) initiative as part of the government’s Indo-Pacific strategy. USCIB’s engagement on the letter was led by USCIB Trade and Investment Committee Chair, Rick Johnston.

The letter stated: “We agree that strengthening trade, investment and economic ties with the region benefits all Americans. The United States needs an affirmative agenda with allies and key partners in the Indo-Pacific to advance shared economic and strategic interests. The United States, as well as our allies and key trading partners, would benefit most from an ambitious and comprehensive IPEF initiative with enforceable commitments, new market opportunities, and wide adoption of high standards.”

“It is critical that U.S. industry voices its support for Biden Administration leadership in engaging this important region of the world,” said USCIB Director for Investment, Trade and China Alice Slayton Clark.

According to the letter, the Indo-Pacific already accounts for $1.75 trillion in trade with the United States and thirty percent of U.S. goods and services exports, supporting millions of American jobs.

USCIB Meets With Australian Consul General to Discuss Mutual Interests, Future Collaboration

Published on February 23, 2022
Left to right: Nick Greiner, Peter Robinson

USCIB had the honor of hosting Australian Consul General Nick Greiner and his colleague Mike Ryan on February 16 in the USCIB New York office.

The meeting between the Australian delegation and USCIB, which included USCIB President and CEO Peter Robinson and Senior Vice President for Policy and Global Strategy Norine Kennedy, allowed for a candid discussion of mutual interests and potential future collaboration—namely in trade and investment, climate change and digital economy, among others.

It was acknowledged that USCIB and its Australian counterpart, the Australian Chamber of Commerce and Industry (ACCI), are both privileged to serve as the respective national affiliates of the three main global business organizations: International Chamber of Commerce (ICC), International Organization of Employers (IOE), and Business at OECD (BIAC).

ACCI also serves as a Steering Team Partner on The USCIB Foundation’s Business Partners to CONVINCE initiative, which is a global network of employers of all sizes that seeks to build vaccine confidence and support uptake among employees.

The Australian Consulate is located in the same building as the Australian Mission to the United Nations, and Consul General Greiner generously offered to introduce USCIB to the latter.

USCIB Commences 2022 With Robust Engagement With Biden Trade Officials

Published on February 2, 2022

USCIB is off to a vigorous start in 2022 in the area of business advocacy. In January, USCIB Director for Investment, Trade and China Alice Slayton Clark held three major committee meetings to bring USCIB members together with Biden Administration officials to discuss China, India and Indo-Pacific trade policy.

Launching this effort, the USCIB China Committee met January 11 for an off-the-record virtual discussion with Deputy Assistant USTR for China Affairs Tim Wineland regarding the key issues confronting the U.S.-China trade relationship. The meeting provided an opportunity for USCIB members to discuss the latest policy developments impacting relations with one of our largest trading partners; topics addressed included the Biden-Xi virtual leaders’ summit, the Administration’s new China trade policy and negotiating agenda for 2022, an assessment of the China Phase 1 trade agreement, and the U.S. plan to address industrial subsidies with China, among other concerns.

The following week, USCIB members met January 19 with Assistant USTR for South and Central Asia Chris Wilson and Deputy Assistant USTR Brendan Lynch for an update on the US-India Trade Policy Forum (TPF) process and the chance to share trade concerns to help inform U.S. priorities as TPF working groups in the areas of agriculture (regulatory alignment), non-agriculture, intellectual property, and services (including digital) are formed for 2022.  A dialogue established by India and the United States in 2005, the TPF was on pause for several years until the Biden Administration relaunched it with an inaugural meeting November 23, 2021.

According to Clark, “the TPF is important to the elimination of trade barriers between the United States and India, and we are grateful to the Biden Administration for resetting the bilateral relationship by reviving this process.  It was important for USCIB members to talk with the negotiators and share their company concerns so the discussions can yield the best results for U.S. industry and its workers.”

Finally, Deputy Assistant Secretary for Asia at the Department of Commerce Pamela Phan joined the USCIB Trade and Investment Committee quarterly meeting January 27 to discuss the Biden Administration’s recently announced Indo-Pacific Economic Framework (IPEF). The IPEF is a Biden Administration initiative intended to reassert U.S. leadership and influence, particularly vis-à-vis China’s economic linkages in the region.  While IPEF is in its early stages, USCIB felt it important to engage with Administration officials now to help shape workstreams and expectations for the discussions ahead.

USCIB Issues ATA Carnet Advisory on Brazil; Brazil to Terminate Carnet as of January 1

Published on December 22, 2021

New York, N.Y., December 22, 2021 — As the National Guaranteeing and Issuing Association (NGA and IA) for ATA Carnet in the United States, the United States Council for International Business (USCIB) is issuing the following guidance for holders (users) of U.S. ATA Carnets to Brazil (BR) or “BR ATA Carnets” for entry into the United States.

As of January 1, 2022, Brazilian customs will terminate their ATA Carnet operations.

Brazil will no longer issue or accept ATA Carnets. The National Confederation of Industry (CNI) initially ended its role as the sole NGA role in Brazil in June 2021 and was subsequently extended to December 31, 2021. During this time, Brazil Customs went through a solicitation process for a new NGA and IA, but the process conducted on September 17 and November 5, 2021, was not successful. At this time, Brazil has not been able to appoint a new entity to guarantee and issue Carnets.

As a result, U.S issued ATA Carnets currently in circulation should not be used for entry into Brazil on or after January 1, 2022. Likewise, ATA Carnets issued by Brazil for entry into the United States will be rejected by U.S. Customs and Border Protection (CBP).

Details of this announcement can be found at the Brazilian Customs’ website.

“Specific questions or assistance on U.S. ATA Carnets with regards to this announcement should be directed to our authorized service providers, Boomerang Carnets and Roanoke Insurance Group,” advised USCIB Senior Vice President and Chief Financial Officer Declan Daly.

ATA Carnets are honored in over eighty customs countries and territories and can be used for multiple trips during a one-year period. The global ATA Carnet system is overseen by the Paris-based World Chamber Federation of the International Chamber of Commerce. USCIB administers the Carnet system in the United States.

More on USCIB’s Trade Services.

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 the International Chamber of Commerce (ICC), the International Organization of Employers (IOE) and Business at OECD (BIAC), USCIB provides business views to policy makers and regulatory authorities worldwide and works to facilitate international trade and investment. More at www.uscib.org.

Vietnam to Join Global “Merchandise Passport” System in Spring 2022

Published on December 20, 2021

New York, N.Y., December 20, 2021 — Vietnam is set to become the seventy-ninth member country to accept ATA Carnets for the temporary, duty-and tax-free importation of various types of goods, beginning May 1, 2022, according to the United States Council for International Business (USCIB), which administers the ATA system in the United States.

ATA Carnets are critical tools of trade facilitation known as the “merchandise passport” or “passport for goods” that simplify customs procedures for the temporary movement of goods and permit goods to enter a party to the System duty and are tax free for up to one-year. They provide users with many benefits, including being easy to use and eliminate surprises at the border; one document allows many country visits during a year of validity; streamline processes at border crossings; and they save time and money (duties & taxes).

ATA Carnets cover import of professional equipment, commercial samples and items for display at exhibitions and fairs. When countries join the ATA system they determine their scope of coverage. As of May 1, Vietnam will allow ATA Carnet covering only exhibitions and fairs (E&F).

The worldwide ATA Carnet system is overseen by the World Customs Organization (WCO) and the International Chamber of Commerce (ICC) – World Chamber Federation (WCF). USCIB is the sole U.S. National Guaranteeing and Issuing Association for ATA Carnets.

“Vietnam has an export market of nearly ten billion dollars,” said USCIB Senior Vice President and Chief Financial Officer Declan Daly, who oversees USCIB’s ATA Carnet operations. “ATA Carnets are tools of export promotion as well. They will allow American and other foreign companies to explore the market and conduct business deals with the country, while enabling Vietnamese businesses easier access and exploration to the U.S. and other global markets.”

The ATA System is in place in over eighty-five countries and territories and provides duty-free and tax-free imports on goods that will be re-exported within twelve months.

Please visit the Vietnam ATA Carnet page for more info.

 

USCIB Supports OECD’s Launch of Report on ‘E-Commerce Challenges in Illicit Trade in Fakes’

Published on December 15, 2021

USCIB Anti Illicit Trade Committee (AITC) Chair David Luna, who also chairs the Business at OECD (BIAC) Anti-Illicit Trade Expert Group (AITEG), made remarks at the December 13 launch of the OECD report “E-commerce challenges in illicit trade in fakes.” The launch of the report took place at the U.S. Department of Homeland Security’s National IPR Coordination Center in Virginia. This important report is also the first outcome of a Special Project on illicit trade between the AITEG and the dynamic public-private partnership (PPP) established under the OECD Task Force on Countering Illicit Trade (TF-CIT).

“On behalf of Business at OECD, we are especially proud to have actively participated in the work leading up to this final report through sharing information and market data insights, best practices, and other industry perspectives to shed greater light on the booming trade of counterfeits across global supply chains and online marketplaces,” said Luna.

“We believe it is crucial to take into account the input from private sector since it ultimately contributes to gain a more detailed perspective of the adverse impacts emerging from illicit trade in e-commerce,” he added.

“USCIB is the U.S. affiliate of Business at OECD (BIAC), the industry voice of the OECD. USCIB members Pfizer, Amazon, eBay, Walmart, Nike, Walt Disney, ABinBev, PMI and The U.S. Chamber of Commerce’s Global Innovation Policy Canter (GIPC) have been active in the BIAC AITEG and the good work of the TF-CIT tied to COVID, e-Commerce, and more,” said Megan M. Giblin, USICB director of customs and trade facilitation, and trade policy manager for USCIB AIT work.

Luna added that many other BIAC federations and partners worked on these important thematic streams in recent years, especially during the COVID-19 pandemic.

According to Luna, the report is timely given the breadth and scale of nefarious actors and criminal networks exploitation of the openness of the internet and anonymity of transactions on e-commerce to evade detection and circumvent law enforcement to distribute and trade in counterfeit and pirated goods, and other illicit goods and contraband, across the digital world. The pandemic has further accelerated illicit trade but especially across online platforms including fraudulent COVID-19 related products.

“As we learned through our series of TF-CIT webinars over the past year, COVID-19 also created unprecedented opportunities for criminals to increase their already significant illicit activities, such as counterfeit pharmaceutical products and personal protective equipment (PPE), frauds, and coronavirus-phishing scams. Illicit trade has further hampered economic development by preventing the equitable distribution of resources that provide for sustainable futures,” said Luna. “Moving forward, the AITEG remains committed to continuing our partnership with the TF-CIT on Phase 2 of the E-Commerce project including more in-depth analyses of the institutional and governance gaps exploited by criminals, and encouragement of more national assessments and country studies.”

Giblin noted that USCIB and its members look forward to continued work with the BIAC AITEG in support of the OECD TF-CIT work streams.

USCIB Presses USTR for Section 301 Tariff Relief

Published on December 8, 2021

USCIB sent a letter to the United States Trade Representative (USTR) Katherine Tai urging for full reinstatement of the Section 301 product exclusion process and calling for a negotiated solution to put an end to the tariffs.

According to USCIB Director for Investment, Trade and China Alice Slayton Clark, the letter was dispatched December 1 as USCIB’s response to the recent USTR request for comment on the possible reinstatement of certain product exclusions subject to the Section 301 investigation of China’s acts, policies, and practices related to technology transfer, intellectual property and innovation (86 FR 56345).

“While reinstatement of the product exclusion process is an important first step, we urge USTR to grant exclusions to all 549 products currently under review, to broaden the Section 301 product exclusion process, and to intensify high level engagement with the Chinese government and U.S. allies on a negotiated solution that ends these harmful tariffs,” said Clark. The letter advocates for retroactive recuperation of duties, long term extensions and a full and transparent Section 301 product exclusion process. It also urges caution when considering any future unilateral actions or remedies, as Ambassador Tai has indicated an interest in launching a new Section 301 investigation into Chinese industrial subsidy policies.

The letter further emphasizes that, while USCIB remains wholly committed to U.S. efforts to confront unfair trade practices, “we are concerned that the Section 301 tariffs imposed against Chinese imports have done more harm than good. Today, the tariffs cover over $370 billion in goods, levying tariffs of up to twenty-five percent on almost every Chinese import into the United States, including USCIB member products across the entire scope of the Harmonized Tariff Schedule of the United States (HTS). The tariffs have raised the cost of doing business in the United States and increased prices for U.S. families without addressing or improving the practices identified by the Section 301.” This outcome runs counter to the Biden Administration’s Build Back Better agenda and goals for U.S. economic recovery.

USCIB Advocates Strong Investment Policies at OECD Investment Committee Sessions

Published on December 1, 2021

USCIB and its international affiliate partners through Business at OECD (BIAC) remain on the front lines, defending solid, pro-investment policies at multilateral fora this fall.  

USCIB President and CEO Peter Robinson participated in the UN Committee on Trade and Development’s (UNCTAD) seventh World Investment Forum (WIF) as part of the Global Leader’s Investment Summit on October 19. “Now more than ever, it is important for international organizations like the UN and its member governments to provide the necessary welcoming environment for foreign direct investment in quality industry and infrastructure projects that help with pandemic relief and sustainable economic growth,” said Robinson. “Otherwise, the pandemic exacerbated investment gap will persist with the developing world most at risk.”   

Robinson also called for a strong and sustained role for industry, as a key stakeholder, in the discussion on investment at UNCTAD, the UN Commission on International Trade Law (UNCITRAL), the OECD or elsewhere. His remarks were echoed by other industry representatives and welcomed by some developing countries like Egypt. Opposing views were led by development economist Jeffrey Sachs and countries like Pakistan that would like to see radical “reform” of the investor state dispute settlement mechanism and reduction or elimination of protections for foreign investors.   

USCIB Senior Advisor Shaun Donnelly was a lead private sector speaker at a parallel “experts meeting” on International Investment Agreements in the same virtual UNCTAD World Investment Forum week. Donnelly forcefully defended investor protections, including a strong Investor-State Dispute settlement System (“ISDS”) as necessary protection against host government discriminatory or unfair treatment of foreign investors.  

There was discussion at WIF of establishing a multi-stakeholder “World Investment for Development Alliance” to facilitate greater collaboration between intergovernmental organizations, business entities, academic initiatives and civil society groups and to develop enabling frameworks to address international investment and sustainable development outcomes. USCIB will follow this proposal closely to ensure our active participation.

Donnelly and BIAC Investment Committee Chair Winand Quaedvlieg (Netherlands) led BIAC’s participation in the OECD Investment Committee’s semi-annual fall meetings. In a free-wheeling brainstorming session on investment treaties on October 28, Donnelly made a major intervention that a government’s right to regulate is not a right to discriminate or abuse investors, to be arbitrary or to be non-transparent.  He pointed out that “policy space” promoted by some governments and NGO participants should not translate into a “carte blanche” for governments to treat investors badly.  But unfortunately, according to Donnelly, some governments continue to do just that, underscoring the need for strong investor protections.   

Donnelly also joined Chairman Quaedvlieg on October 27 at a formal “stakeholder consultation” with the OECD Investment Committee leadership.  That session, where BIAC joins with labor union representatives from the Trade Union Advisory Council (TUAC),  as well as civil society group OECD Watch, was an opportunity for each of the stakeholders to lay down priorities and basic positions on future work in the OECD Investment Committee.   

Donnelly and USCIB Director for Investment, Trade and China Alice Slayton Clark, remained engaged this fall in informal consultations with U.S. government leaders to press the importance of investor state dispute settlement and positive Biden Administration messaging on the investment climate. The messages built on the above, encouraging conducive taxation frameworks, facilitation of administrative procedures, complementary public investments in modern infrastructure and the right mind- and skill sets, and sound investment protection and general predictability. 

Finally of note, USCIB continues to work with BIAC to share business views with respect to development of the OECD Foreign Direct Investment Qualities toolkit, designed to help policymakers create an enabling environment for attracting Foreign Direct Investment that safeguards key sustainability goals: productivity and innovation; employment, job quality and skills; gender equality; and, low-carbon transition. The toolkit is earmarked as a key deliverable for next fall’s OECD Ministerial Council Meeting. 

According to Clark, “All of these interventions provided a great opportunity for USCIB to remind government officials at the national and international level of the importance of foreign direct investment to economic development, recovery and sustainability, particularly in the face of a pandemic induced downturn.  As such, we must continue to maintain strong investor protections in international investment agreements.”   

USCIB Leads Business Policy Roundtable as Part of Brazil’s Accession to OECD 

Published on November 17, 2021

The Brazil OECD Business Policy Roundtable brought together U.S. and Brazilian government officials, the OECD and industry representatives in early November to discuss taxation reform and best practices as Brazil seeks to accede to the OECD.  According to USCIB Director for Investment, Trade and China Alice Slayton Clark, this is the latest of the several forums held by the Brazil Roundtable to explore changes to policy and practice – in line with OECD standards and best practices – that benefit businesses and employees while driving inclusive economic growth in Brazil.

Isaias Coelho, special advisor to Brazil’s Ministry of Economy, and Sandro de Vargas Serpa, undersecretary of Taxation and Litigation at the Federal Revenue of Brazil (RFB), detailed the regulations and legislative proposals under consideration that would simplify taxes at the state, federal and municipal levels, reforming consumption, income and international taxation practices.

“Brazil is currently undertaking significant regulatory reforms consistent with OECD guidelines including Recommendations of the Council on Regulatory Policy and Governance,” said Coelho. The ultimate hope, according to Mario Sergio Carraro Telles, executive manager of Economics for the Brazil Industry Association, is to adopt laws that simplify the tax system and reduce costs and uncertainty for companies.

Brazil has been working since 2018 in a dialogue with OECD on transfer pricing, which has evolved into a project aimed at aligning the existing transfer pricing regime with the OECD standard.  This joint project was made possible with the support of UK Prosperity Fund and other OECD countries who share their experience and best practices with Brazil. The United States has bolstered this process through technical assistance and training, asserted John Hughes, director of Advanced Pricing and Mutual Agreement Program of the U.S. Internal Revenue Service.

According to OECD Senior Advisor Tomas Balco, current policies in Brazil end up double taxing multinationals, deterring foreign investment and preventing Brazil from participating fully in global value chains. Luiz de Medeiros, Brazil country manager for IBM and a USCIB member, provided details from an industry perspective, expressing “great hope” that Brazil laws can be aligned with OECD norms.  Toward that end, Flávio Antônio Gonçalves Martins Araújo, head of the International Relations Office at RFB, reported that Brazil Administration currently is working on a legislative proposal to submit to Congress and start a political discussion in 2022 on a new transfer pricing law.

“It is clear from the speakers that the mood is right for reform in Brazil, and efforts are being made despite the economic challenges posed by the pandemic,” said Clark. “We hope these roundtables can inform and inspire in that regard, offering solutions for change that ease the economic burden for all.”

USCIB led the meeting, along with cohorts from the Brazil-U.S. Business Council of the U.S. Chamber of Commerce and Brazil’s National Industry Confederation (CNI). As the official U.S. representative to Business at OECD (BIAC), USCIB has been actively monitoring Brazil’s accession request to the OECD in order to advance business interest.

Additional roundtable discussions will be held throughout 2022, covering investment and trade, environment and sustainable development, as well as innovation and intellectual property.  Digital and regulatory issues were discussed earlier this year.