Trade and Investment Archives

Let statesmanship prevail in Geneva

Published on July 30, 2014

By ICC Chairman Terry McGraw and ICC Secretary General John Danilovich

Financial Times

“Last December we wrote – together with 80 other business leaders – to call on governments to conclude the first global trade deal in almost two decades. High quality global journalism requires investment. The World Trade Organisation’s Bali agreement has since been widely, and rightly, hailed as providing a major contribution to the global economy; not to mention saving any hope for the WTO’s multilateral trading system.”

Read the full letter: http://www.ft.com/intl/cms/s/0/311936cc-1652-11e4-8210-00144feabdc0.html?siteedition=uk#axzz3QuAptMOB

Business to G20 Drive Growth With Trade

Published on July 18, 2014

Concluding the Business-20 (B20) Summit in Sydney today, CEOs from around the world have called on the G20 to forge ahead with opening global markets, by liberalizing trade and investment policies, as the surest way to revive economic growth and job creation.  The B20 Summit is an important opportunity for the global business community to provide input into the process leading up to the G20 Summit in Brisbane, Australia in November. Executives from USCIB member firms and across our global network played a prominent role.

“The most effective way to stimulate the economy and employment is moving ahead with a robust trade agenda” – Terry McGraw, USCIB Chairman.

CNBC Interview with USCIB Chairman Terry McGraw

The International Chamber of Commerce led a delegation of business leaders and CEOs to the B20 Summit, including USCIB and ICC Chairman Harold (Terry) McGraw III, for two-day discussions with business and government representatives. The event saw the finalization and prioritization of 20 mutually reinforcing recommendations for action by G20 leaders that if adopted, would exceed the two percent growth target set by G20 finance ministers in February.

“In a time of low, slow growth the most effective way to stimulate the economy and employment is moving ahead with a robust trade agenda,”said McGraw. “That is why first and foremost, G20 nations should implement and ratify the Trade Facilitation Agreement that the WTO agreed to in Bali last December. By removing barriers to trade and cutting red tape this agreement has the potential to reduce total trade costs by 10 percent in advanced economies and by 13-15.5 percent in developing economies.”

Political and business leaders at the summit included Australian Prime Minister Tony Abbot, Australia B20 Chair Richard Goyder and Australian American business icon Rupert Murdoch.

Coordinated Push on Global Trade

With the World Trade Organization forecast for global trade in 2014 still below the 20-year average, ICC has called on G20 leaders to promote a multilateral approach to international trade and investment and to demonstrate the G20’s continued relevance to global governance by maintaining momentum on trade.
Specifically, ICC seeks collective action to remove barriers to global exports of tradable services by making progress on an international trade in services agreement and also calls for further expansion of an International Technology Agreement relating to the export of IT products.
As the voice of global business,ICC and its American affiliate, USCIB, have also pressed for the greater promotion and protection of cross-border capital flows – especially foreign direct investment – an infrastructure information hub to increase the pipeline of bankable, investment-ready projects and a multilateral framework on investment that will create an enabling environment for greater investment across borders.

“All of us – the business community, government and NGOs – need to work together and push for more cooperation from all sides in order to build on the momentum coming from the Bali agreement and realize the promise of global trade as a means of raising standards of living around the world,” added McGraw.

During a panel discussion about ways to accelerate global trade, WTO Director General Roberto Azevedo noted that at the end of the day, government acts because the private sector pushes, and the Bali agreement would not have happened without business’s involvement. USTR Ambassador Mike Froman and McGraw added that a strong WTO is necessary to implement the Trade Facilitation Agreement and to prevent countries from lapsing back into protectionist national agendas.

Action Needed on Labor and Taxes

Following the first day of B20 Summit discussions, the secretary general of the International Organization of Employers, Brent Wilton, commended the G20 labor ministers for commitments they made last July to address labor market structural problems, education and workforce development. However, Wilton said those commitments haven’t been sufficiently implemented. He noted that the G20 labor ministers must “walk the talk” and follow up on the employment plans they committed to in September.

Also following the B20 Summit, the international business community is looking at the Organization for Economic Cooperation and Development (OECD) for knowledge and leadership in the run-up to the G20 Summit in November, especially on global tax issues.

“The OECD is in a unique position to advise governments on the benefits of open markets and structural reforms,” said Phil O’Reilly, chair of the Business and Industry Advisory Council (BIAC) to the OECD. Speaking at a meeting with OECD Secretary General Angel Gurria and G20 Business leaders in Sydney, O’Reilly said “The OECD mandate to develop a sustainable framework for international taxation is a case in point. The design and framework will be critical for the global economy. It must encourage and not hinder trade and investment across borders.

USCIB plays a leading role in OECD global tax discussions and recently held its annual International Tax Conference, organized with BIAC and the OECD.

Forging Ahead

Comprising over 30 CEOs and prominent business leaders, the ICC G20 CEO Advisory Group has been a platform for continuity in the B20 process between Summits, soliciting priorities and recommendations from companies and business organizations of all sizes and in all regions of the world.

ICC Secretary General John Danilovich said: “For the fifth consecutive year, ICC CEOs held leadership positions in the B20 task forces and contributed significantly to the development of the final recommendations. ICC’s participation in the B20 will contribute significantly to turning Mr. Abbott’s objectives for the Australia leg of the G20 into concrete action to drive measurable progress on the underlying G20 agenda of trade, growth, and jobs.”

“Looking ahead to the Brisbane G20 Leaders Summit in November, ICC will remain fully engaged with B20 leaders to rally ICC’s far-reaching network of companies and chambers of commerce to advocate for G20 Leader endorsement of the B20 recommendations,” said Danilovich.
ICC’s G20 CEO Advisory Group mobilizes worldwide policy-making expertise and solicits priorities and recommendations from companies and business organizations of all sizes and in all regions of the world. The group is composed of over 30 CEOs and business leaders working to ensure that the voice of business is heard by governments, the public and the media before, during and after each Summit.

Staff contact: Rob Mulligan

More on USCIB’s Trade and Investment Committee

Exploring New Approaches to Trade Investment and Jobs

Published on July 16, 2014
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Exploring New Approaches to Trade, Investment and Jobs

Insight and Impact for Business from the OECD

 

October 30, 2014

The St. Regis Hotel | Washington, DC

 

KEYNOTE SPEAKER:

Michael_Froman

Ambassador Michael Froman

United States Trade Representative

NEW PANELIST:

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Cathy Novelli

Under Secretary for
Economic Growth, Energy and the Environment
U.S. Department of State

AGENDA NOW AVAILABLE!

Click here to view a complete schedule, list of speakers, and panel descriptions.

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, job creation and trade negotiations around the world.  This program will bring together experts from the 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.

Sponsored By:
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Partner Sponsors:
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us_chamber_of_commerce_logo

Registration costs are $200 for USCIB members and $225 for non-members, and

$100 for government and non-profit attendees.

Space is limited. Register now to secure your place at this unique new event!

You can register online by following this link, or by filling out a registration form.

For more information on the conference:

Please visit www.uscibtrade.org
or contact Diana Jack at djack@uscib.org
or (202) 617-3156.

 

For information on sponsorship opportunities:

Please contact Abby Shapiro at ashapiro@uscib.org or (617) 515-8492.

 

Click here to download an Outlook calendar reminder to save the date of October 30, 2014.

 

Click here for a list of hotels near the St. Regis in Washington, D.C. if you will be traveling for the conference.

Pushing for Open Trade After Bali

Published on July 9, 2014

Globe CubeThe International Chamber of Commerce (ICC) has adopted a work-plan supporting further trade liberalization following the success of the meeting of Ministers of the World Trade Organization in Bali, Indonesia last December.

Prepared by the ICC Commission on Trade and Investment Policy, the “ICC World Trade Agenda post-Bali business priorities” welcomes the renewed pursuit of a global trade and investment agenda that moves talks beyond Doha.

The priorities include further trade liberalization regionally, through negotiations on a Trans-Pacific Partnership (TPP), a Transatlantic Trade and Investment Partnership (T-TIP), a Regional Comprehensive Economic Partnership (RCEP) and the Pacific Alliance. ICC also supports the rapid implementation of the WTO Trade Facilitation Agreement, which is especially crucial for developing countries.

“One of the big challenges for business, in an economy that is increasingly globalized, is that in many crucial areas, international rules are either non-existent or inadequate,” said James Bacchus, former U.S. Congressman and current chair of the Commission on Trade and Investment Policy. “The WTO has a fundamental role to play in modernizing the international rules of the game – and ensuring compliance with them – so that we can create an effective 21st-century trading system.”

Bacchus continued: “This is why the ICC is mobilizing business worldwide around a 21st-century multilateral World Trade Agenda for sustainable economic growth and job creation. The ICC believes that following the recent success in Bali, there is a real opportunity to make progress on a global trade agenda.”

Adopted at a meeting of the ICC Executive Board in Geneva on June 26, the policy statement urges trading countries to act on the following priorities:

  • Concluding global negotiations aimed at a balanced outcome for the critical areas of agriculture, non-agricultural market access and services, which would speed up multilateral trade liberalization within the WTO. This includes developing a clear path towards conclusion of the Doha Development Agenda and its planned reductions of industrial tariffs.
  • Eliminating barriers to trade in IT products and encouraging the growth of e-commerce worldwide. This requires expanding product coverage under the WTO Information Technology Agreement, and continuing to refrain from imposing customs duties on e-commerce. Global exports of IT products reached $1.4 trillion in 2010, making this one of the most important categories in world trade.
  • Fostering “greener” economic activity through trade. More countries should be encouraged to join the initiative announced in January 2014 by 14 WTO members to eliminate tariffs on environmental goods
    and expand product coverage for goods that protect the environment and address climate change.
  • Helping to liberalize trade in services through alternative negotiating approaches such as the Trade in Services Agreement. It is estimated that removing barriers to global exports of tradable services could generate world trade gains of $1 trillion, which could create almost 9 million jobs worldwide.
  • Encouraging the development of WTO disciplines over state-owned and state-supported enterprises that enter the market. Between 2004 and 2008, 117 state-owned and public companies appeared for the first time on the Forbes Global 2000 list of the world’s largest companies. The home governments of these companies protect them from competition, and this can be a way for governments to intervene in the marketplace and skirt their WTO commitments.
  • Improving the protection and promotion of investment through bilateral and other agreements, while also laying the groundwork for a high-standard multilateral framework on investment.

Staff contacts: Rob Mulligan, Shaun Donnelly, Eva Hampl and Kristin Isabelli

More on USCIB’s Trade and Investment Committee

Coalition for Green Trade Endorses WTO’s Environmental Goods Agreement

Published on July 9, 2014

4779_image002USCIB joined with other U.S. business groups to form the Coalition for Green Trade on Tuesday to support new negotiations by World Trade Organization (WTO) members that would remove trade barriers on environmental technologies.

The coalition has called on members of the WTO to negotiate an ambitious Environmental Goods Agreement (EGA), which would eliminate trade barriers on a broad range of environmental goods, such as solar panels and recycled materials.

In addition, USCIB joined with a broad range of business associations and companies from around the world in calling for an EGA. An open letter to WTO negotiators signed by USCIB stated: “We are committed to working with governments around the world to ensure a commercially meaningful Environmental Goods Agreement that promotes economic growth, improves environmental outcomes and advances innovation.”

Global trade in environmental goods is estimated to be $1 trillion annually, and trade in environmental products more than doubled from 2001 to 2007. An EGA would further increase global trade in environmental goods and lower the cost of addressing climate challenges by removing steep tariffs, the groups said.

“EGA is important in its own right, and can also act as a stepping stone to lower tariffs in other sectors and value chains associated with environmental technologies,” said Eva Hampl, USCIB’s director of investment, trade and financial services.  “A high-quality agreement would advance global innovation and be flexible to permit new entrants and commitments to keep pace with new technologies.”

The Coalition for Green Trade is co-chaired by USCIB, the National Association of Manufacturers  and the National Foreign Trade Council, and its  steering committee includes the Business Council for Sustainable Energy, Coalition of Service Industries, Emergency Committee for American Trade, Information Technology Industry Council, Institute of Scrap Recycling Industries, National Electrical Manufacturers Association, Semiconductor Industry Association, Solar Energy Industries Association  and U.S. Chamber of Commerce.

The first round of EGA talks are scheduled to begin this week in Geneva. Representatives from NAM, NFTC and USCIB are leading a U.S. business delegation to participate in events and meetings on the sidelines of the official negotiations.

Staff contacts: Norine Kennedy and Eva Hampl

More on USCIB’s Trade and Investment Committee

More on USCIB’s Environment Committee

Ambassador Froman on a TTIP Investment Chapter

Published on July 3, 2014

By Eva Hampl

Investment Policy Central

“The U.S. Trade Representative Ambassador Michael Froman chose to highlight investment issues in his May 5 speech at the German Ministry of National Economy and Energy in Berlin on the U.S.-EU Transatlantic Trade and Investment Partnership (TTIP).  Addressing the question why two major economic partners with good judicial systems and rule of law need a strong investment chapter, Ambassador Froman said:”

Read the full post: http://www.investmentpolicycentral.com/content/ambassador-froman-ttip-investment-chapter

Mayors Across America Express Support for Trade Promotion Authority

Published on July 2, 2014

4777_image001Exciting news on trade from our partners at the Trade Benefits America Coalition:

Last week, the United States Conference of Mayors adopted two resolutions
that urge congressional passage of Trade Promotion Authority (TPA) legislation and support America’s expansion of trade and investment ties around the world.

By adopting these resolutions America’s mayors have added their voices to the growing group of policymakers who understand the economic importance of TPA and expanding trade across the United States.

In December, a bipartisan group of 15 governors sent a letter urging President Obama and House and Senate leaders to support and advance pending trade negotiations – the Trans-Pacific Partnership (TPP), Transatlantic Trade and Investment Partnership (TTIP) and Trade in Services Agreement (TISA).

Congressional passage of the modernized TPA legislation will help shore up the economic benefits of these and future trade agreements.

Read the Trade Benefits America Coalition’s fact sheets on the TPA legislation.

USCIB sits on the steering committee of the Trade Benefits America Coalition, a group of associations and companies dedicated to the pursuit of U.S. international trade agreements that benefit American businesses, farmers, workers and consumers. The Coalition believes that passage of modernized Trade Promotion Authority legislation is important to help ensure American continues to benefit from trade.

Staff contacts: Rob Mulligan and Eva Hampl

More on USCIB’s Trade and Investment Committee

ICC Releases Global Survey 2014 Rethinking Trade and Finance

Published on July 2, 2014

4778_image002The International Chamber of Commerce (ICC) released the Global Survey 2014: Rethinking Trade and Finance, its largest and most comprehensive Global Survey to date – including data from 298 banks across 127 countries. The survey concludes that the growth rate of international trade has dropped drastically when compared to the years before the global financial crisis.

Survey highlights include:

Lack of available trade finance caused global trade growth to slow

Global trade growth was a shade above 3 percent during 2013, although picked up to an annualized growth rate of 4 during the first quarter of 2014 and is anticipated to accelerate beyond 5 percent through 2016. However, in terms of the “trade finance gaps,” 41 percent of survey respondents reported that they perceived a shortfall of trade finance globally.

KYC and AML regulations caused banks to decline transactions and close relationships

Know Your Customer (KYC) and Anti-Money Laundering (AML) regulations caused 68 percent of respondents to decline transactions, and nearly a third (31 percent) to close down correspondent account relationships.

G20 countries stalled agenda to open up world trade through trade-restrictive measures

G20 countries accounted for three quarters of the trade restrictive measures imposed since 2008, with Word Trade Organization figures showing that these countries introduced 193 new trade restrictive measures between December 2012 and November 2013. Such restrictions – many of which are protectionist and therefore trade distorting – have stalled the agenda to open up world trade.

Read more on the ICC website.

Read about the ICC’s 2014 Trade Register Report.

Staff contact: Shaun Donnelly and Eva Hampl

More on USCIB’s Trade and Investment Committee

Business Priorities on Trade Presented at OECD

Published on June 6, 2014

On May 26, the Business and Industry Advisory Council to the OECD (BIAC) held its bi-annual trade committee meeting in Paris, where 15 participants from a wide range of countries contributed to shaping BIAC’s strategic directions on trade. USCIB’s Senior Vice President for Policy and Government Affairs, Rob Mulligan, attended the meeting; USCIB is the U.S. affiliate of BIAC. The meeting was followed by a strong BIAC delegation participating in a series of OECD Trade Committee meetings on May 27-28.

Members to the committee discussed next steps for the recently released Business Priorities on Trade paper, and had an opportunity to present their work and views to the OECD Trade Committee. Among others, the Business Priorities on Trade paper provides recommendations to OECD on trade in services, global value chains, localization barriers to trade, and the movement of business persons. BIAC will work closely with its members and OECD to explore these issues further throughout the 2014 and 2015.

Read more about BIAC’s activities on the BIAC Monthly News Bulletin.

Staff contact: Rob Mulligan

 

More on USCIB’s Trade and Investment Committee

Europe Must Commit to Foreign Direct Investment

Published on May 28, 2014

By Shaun Donnelly

Investment Policy Central

“In July 2013, the U.S. and the European Union finally launched formal negotiations for a comprehensive free trade and investment agreement, the Transatlantic Trade and Investment Partnership or “TTIP.” This proposed agreement would include binding commitments from both sides to swing the doors wide open to investment, what negotiators call Foreign Direct Investment or “FDI,” from the other side of the Atlantic.  We at USCIB think this is absolutely the right policy approach – that FDI, both inward and outward, can help drive economic growth, job creation, and global competitiveness in the context of a high standard TTIP agreement.”

Read the full post: http://www.investmentpolicycentral.com/content/where-does-europe-really-stand-foreign-direct-investment