Trade and Investment Archives

Renewed Action on Trade: A Boost to Companies of All Sizes

Published on August 1, 2013

By Peter Robinson, USCIB President and CEO

DHL Delivering Tomorrow Blog

“After something of a lull during President Obama’s first term, liberalization of international trade and investment is back at the top of the global economic agenda. I strongly feel this has the potential to give a shot in the arm to companies of all sizes, including the emerging class of “SME multinationals” – the growing roster of small firms that have gone global and are actively participating in dynamic worldwide production and value chains.

Read the full post: http://www.delivering-tomorrow.com/renewed-action-on-trade-a-boost-to-companies-of-all-sizes/

USCIB Urging Congression Action to Promote Inward Foreign Investment

Published on July 30, 2013

USCIB joined with nine other leading business groups in a July 30 letter to the leadership of the House of Representatives strongly supporting quick floor approval for early adoption of HR 2052, the Global Investment in American Jobs Act.

USCIB has long been a leader in supporting both outward and inward foreign direct invest (FDI) as critical for American competitiveness, growth, and jobs in today’s globalized economy. The bill, which earned rare unanimous support of the House Energy and Commerce Committee on July 17, highlights the contributions which inward FDI makes to American prosperity and jobs, tasks the Secretary of Commerce to lead the first-ever comprehensive review of the competitiveness of the U.S. as a destination for international FDI, and to develop recommendations to enhance our national investment competitiveness in this key area.

While the United States remains the world’s leading recipient of FDI, our global share of such investment has dropped significantly since the turn of the 21st century, from 41 percent in 1999 to just over 17 percent in 2011. So we as a nation certainly have some work to do to keep ahead in this increasingly competitive global environment. This important piece of investment legislation can be a first step.

Staff contact: Shaun Donnelly

More on USCIB’s Trade and Investment Committee

Business Pushes for Maximum Liberalization in TPP Talks

Published on July 23, 2013

On July 23, concurrent with the 18th Round of Trans-Pacific Partnership (TPP) negotiations in Malaysia, USCIB co-signed a letter with 47 other business associations to U.S. Trade Representative Michael Froman on U.S. priorities in the talks. The letter emphasizes the need for “further trade liberalization – at home as well as abroad” across all sectors, including the few sectors of the U.S. economy that receive significantly more protection from import competition than most other sectors. The business associations have advocated for no exclusion of specific sectors in minimizing government protections or preferences that distort the market in order to increase competition and facilitate a more adaptable economy in the face of challenging market dynamics. They wrote that maximum liberalization of protected sectors will benefit our economy, our workers and our consumers in the long-term by advancing U.S. competitiveness in the globalized economy of the 21st century.

Staff contact: Rob Mulligan

More on USCIB’s Trade and Investment Committee

Global Industry Letter to China Urges for ITA Expansion

Published on July 23, 2013

USCIB, along with numerous business associations and companies from around the world, signed a letter to Chinese Vice Premier Wang Yang urging for expanded product coverage of the Information Technology Agreement (ITA).

What would have been the final round of ITA expansion talks were suspended in Geneva the week before due to China’s “disproportionately large product sensitivities list” that was “more than twice as long as any other country’s sensitivities list and included a request for the removal of roughly 100 product lines from the negotiating table,” the letter remarked. This has become the main obstacle in obtaining an ambitious ITA expansion outcome this year, which would, by one estimate, add $190 billion to global GDP annually.

The letter states that “China stands to be one of the largest beneficiaries of an expanded ITA” because of its considerable presence in the global tech industry, boosting its economy and innovation capacity. The letter thus urges China to significantly reduce the size of its sensitivities list so that ITA talks can reach a conclusion and further increase economic growth, competitiveness, and innovation around the world.

Click here to read the global industry statement supporting ITA expansion, signed by 81 associations from 31 economies and regions around the world.

Staff contacts: Rob Mulligan and Justine Badimon

More on USCIB’s Trade and Investment Committee

More on USCIB’s China Committee

US-China Strategic Economic Dialogue Announcement of Investment Talks

Published on July 12, 2013

4557_image002The 5th Round of the U.S.-China Strategic & Economic Dialogue (S&ED) concluded this week in Washington, D.C. with a promising announcement from China that they intend to begin formal talks on a high-standard bilateral investment treaty (BIT) with the United States.

In final statements, Treasury Secretary Jacob Lew said that his Chinese counterparts in the S&ED, Chinese State Councilor Yang Jiechi and Chinese Vice Premier Wang Yang, are ready to include all stages of investment and all sectors in the BIT negotiation.

This high-level agreement on basic terms of reference for negotiation of a high-standard U.S.-China BIT is quite encouraging. “If in fact China agreed to negotiations on all elements of an investment treaty, they would be opening up their economy considerably,” said USCIB Vice President Shaun Donnelly in an interview with Marketwatch. Donnelly said that all types of U.S. companies would benefit, especially oil and gas firms and financial-services entities.

Actual negotiation of such a BIT – including broad protections for investors, comprehensive definitions and coverage, strong investor-state dispute settlement provisions, and U.S.-style “pre-establishment” provisions for market-opening investment opportunities in both directions – will likely be quite challenging and will certainly take some time. But this high-level commitment to a negotiation of U.S.-style “gold standard” BIT is a very encouraging development.

Some other key developments from the S&ED include:

  • Acknowledgement of the cyber-theft issue and willingness to address the issue head-on
  • China’s announcement that it plans to submit a revised offer to join the WTO Government Procurement Agreement (GPA) by the end of 2013
  • China’s commitment to further open up to foreign investment – announcing a pilot free-trade zone in Shanghai for services
  • China’s commitment to further exchange-rate reform and enhanced foreign-exchange reserve transparency
  • China’s promise to provide requested audit work papers to U.S. market regulators, a step toward resolving issues on enforcement cooperation related to companies listed in the United States
  • Commitments from China to take important steps toward significant reform to the exchange-rate system, financial system, state-owned enterprises and taxes on businesses.

Please see final remarks from the S&ED here: http://www.state.gov/s/d/2013/211850.htm.

US-China Joint “Economic Track”S&ED Fact Sheet: http://www.treasury.gov/press-center/press-releases/Pages/jl2010.aspx.

Staff contacts: Justine Badimon and Shaun Donnelly

More on USCIB’s China Committee

More on USCIB’s Trade & Investment Committee

Uncertainty Hampering Trade Finance ICC Survey Shows

Published on July 9, 2013

4547_image002The International Chamber of Commerce’s 2013 survey on trade and finance, released in June, has found that a continued shortage of trade finance for international trade remains a major challenge for economic recovery and development, with many traders depending on overdraft and other corporate loans to finance exports and imports.

The proliferation of new regulations in recent years has increased cost pressure on financial institutions and depressed markets. Some 65% of surveyed experts said implementation of Basel III regulations is affecting the cost of funds and liquidity for trade finance. While many changes have already been implemented or proposed, the regulatory future remains unclear due to lack of harmonization, which remains a major problem for trade financiers and their clients.

The ICC survey positively indicates that despite uneven performance around the world in 2012, the market for trade finance does show signs of slow and steady growth, with temporary trade measures imposed during the financial crisis – including the rise in fees for trade –slowly being removed.

“This shows that financial intermediaries are continuing to satisfy the demand for financing and that investing in trade assets is part of a more sustainable model of banking, said Pascal Lamy, director general of the World Trade Organization, in the survey’s foreword.

Click here to read more on ICC’s website.

Staff contact: Eva Hampl

More on USCIB’s Banking Committee

More on USCIB’s Trade and Investment Committee

ICC Recognized for Trade Services

The ICC Banking Commission has won the Trade and Forfaiting Review
2013 Excellence Award for Best Non-Bank Trade Services Provider.

With 80 years of experience and more than 600 members in over 100 countries, the commission is ICC’s largest commission and has gained a reputation as the most authoritative voice in the field of trade finance.

The ICC Banking Commission rules and related services include rules and guidelines on documentary credits, UCP 600 – the most successful privately drafted rules for trade ever developed – and Bank Payment Obligation rules on supply chain finance.

The award follows the commission’s recent launch of new standards in the field of trade finance, including Uniform Rules for Forfaiting and Bank Payment Obligation and International Standard Banking Practice.  Both publications are available for purchase in the USCIB International Bookstore.

Click here to read more on ICC’s website.

Business Groups Express Concerns on Senate Effort to Address IP Theft

Published on June 21, 2013

USCIB joined leading U.S. technology and business organizations in urging key senators from both sides of the aisle to take a fresh look at a proposed law on cyber-theft, to avoid any unintended consequences of harming U.S. economic security and competitiveness or hindering trade and commerce.

The groups explained their concerns in a joint letter to Senators Carl Levin (D-Mich.), Jay Rockefeller (D-W.Va.), John McCain, (R-Ariz.) and Tom Coburn (R-Okla.) — the bipartisan sponsors of S. 884, the Deter Cyber Theft Act. They wrote in part:

Theft of America’s valuable intellectual property and trade secrets through cyber espionage, or other means, is a serious economic security problem for U.S. companies and our country.  In today’s dynamic marketplace, a company’s success is highly dependent on its innovations and competitive advantage, both of which are closely tied to the development and protection of intellectual property. Collectively, the U.S. tech sector spent $80 billion in 2011 protecting and securing their networks against threats, including cyber espionage, and we commend the cosponsors for their demonstrated interest in protecting intellectual property (IP) from theft.

However, we have significant concerns with S. 884, the “Deter Cyber Theft Act,” as introduced, particularly the impact the legislation may have on international commerce and trade at a time when cyber policies are of heightened importance for the global technology ecosystem, as well as the long-term impact on U.S. economic security. For that reason, we urge the cosponsors to engage in a thorough review of this and similar legislation through hearings and markup in the Senate Finance Committee, where S. 884 is currently pending.

We applaud the bipartisan interest in protecting our economically vital intellectual property. However, we believe that we can advance intellectual property protection in a way that does not have a negative impact on our nation’s economic security and competitiveness.  For that reason, we look forward to working collaboratively with the cosponsors to ensure that S. 884 and similar legislation will effectively achieve these important shared goals.

Among the concerns expressed in the letter are S. 884’s potential impediment to international relations, its impact on U.S. exports, and its broad importation ban authority. Click here to read the complete letter. Signatories in addition to USCIB were BSA – The Software Alliance, the Information Technology Industry Council, the National Foreign Trade Council, TechAmerica and the U.S. Chamber of Commerce.

Staff contact: Rob Mulligan

More on USCIB’s Intellectual Property Committee

More on USCIB’s Trade and Investment Committee

An Early Harvest on Trade That Could Boost Jobs and Growth

Published on June 17, 2013
Former World Bank President and U.S. Trade Representative Robert Zoellick spoke at the event.
Former World Bank President and U.S. Trade Representative Robert Zoellick spoke at the event.

Washington, D.C., June 17, 2013 – As G8 leaders gather in Northern Ireland for their annual summit, expanding trade will be high on the agenda. To spur discussion of concrete steps that could be taken to revive global trade and investment, the Peterson Institute for International Economics joined with and the International Chamber of Commerce (ICC) to hold a June 14 discussion in Washington, “Payoff from the World Trade Agenda.”

Robert B. Zoellick, former president of the World Bank and former U.S. trade representative, provided keynote remarks. Zoellick applauded the ICC initiative as “a great pathway” to expanded trade in a world where global output is now evenly split between developed and developing countries, and where significant South-South trade barriers still remain.

The event was held in partnership with the United States Business Council for International Business (USCIB), which serves as ICC’s American national committee, and the Center for Strategic and International Studies.

The Peterson Institute report, written by Gary Clyde Hufbauer and Jeffrey J. Schott, takes a fresh look at the Doha Round trade negotiations, and assesses the potential payoffs from seven agreements that could be revived and advanced in 2013 and entered into force as early as 2015. If all seven agreements were ratified, global gains could be substantial: export gains over $2 trillion, 34 million jobs supported, and global GDP gains of $2 trillion.

Incoming ICC Chairman Terry McGraw, CEO of McGraw-Hill Financial and also chairman of USCIB, said the report showed how important trade is to sustained global economic recovery. He said business leaders would strongly endorse the trade agenda with G20 leaders at this year’s summit in Saint Petersburg, Russia, and with WTO trade ministers in advance of their December ministerial in Bali, Indonesia.

USCIB President and CEO Peter Robinson cited the new report and recent OECD work on trade in value-added as underscoring the wisdom of securing multilateral solutions in a world of highly integrated, multi-country global value chains. He noted that imports now constitute some 40 percent of the value of exported goods globally, making import barriers in essence a tax on exports.

The Peterson report looks at potential trade, output and employment gains from the following elements in ICC’s World Trade Agenda:

  • concluding a WTO trade facilitation agreement
  • negotiating a new services plurilateral
  • expanding trade in information technology
  • implement duty-free and quota-free market access for exports from least-developed countries phasing out agricultural export subsidies
  • renouncing food export restrictions.

The report concludes that by simplifying customs procedures – through trade facilitation measures – alone, WTO member countries would deliver global job gains of 21 million, with developing countries gaining more than 18 million jobs and developed countries increasing their workforce by three million.

Providing a business perspective on the Peterson Institute report at the June 14 event were James Bacchus of Greenberg Traurig, a former Congressman and former chair of the WTO appellate body who now chairs ICC’s Trade and Investment Commission, Charles Johnston of Citi, chair of USCIB’s Trade and Investment Committee, and Scott Miller of the Center for Strategic and International Studies. For video and audio from the June 14 event, go to http://www.iie.com/events/event_detail.cfm?EventID=287.

For more information on the ICC World Trade Agenda, please visit http://www.iccwbo.org/global-influence/world-trade-agenda/.

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. With a unique global network encompassing 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 at www.uscib.org.

Contact:
Jonathan Huneke, USCIB
+1 212.703.5043, jhuneke@uscib.org

More on USCIB’s Trade and Investment Committee

USCIB Hails Launch of U.S.-EU Trade and Investment Talks

Published on June 17, 2013
L-R: European Council President Van Rompuy, President Obama, European Commission President Barroso, UK Prime Minister Cameron.
L-R: European Council President Van Rompuy, President Obama, European Commission President Barroso, UK Prime Minister Cameron.

New York, N.Y., June 17, 2013 – The United States Council for International Business (USCIB) applauded today’s announcement at the G8 Summit in Lough Erne, Northern Ireland that the United States and the European Union have launched negotiations for a Transatlantic Trade and Investment Partnership (TTIP).

“The European Union is our biggest export market, while the transatlantic investment relationship is the largest in the world, but there are plenty of additional opportunities if we play our cards right,” said USCIB President and CEO Peter Robinson.

“TTIP has the capacity to provide a big boost to our competitiveness, economic growth, and jobs here at home, and can jump-start other trade liberalization efforts at the regional and multilateral levels.”

According to the White House, the initial round of U.S.-EU talks is set to begin in Washington on July 8. It said TTIP will aim to further open EU markets, strengthening rules-based investment to grow the world’s largest investment relationship, while eliminating all tariffs on trade, improving market access for trade in services and tackling costly “behind the border” non-tariff barriers that impede the flow of goods, including regulatory impediments.

Last month USCIB submitted a report on TTIP to the U.S. Trade Representative’s office detailing recommended negotiating objectives in a variety of areas. Earlier this month, USCIB organized a roundtable in New York on the stakes for business in the TTIP negotiations.

Robinson said USCIB would work with fellow industry groups and the U.S. Trade Representative’s office to ensure that American industry views are front and center in the negotiations. USCIB is on the steering committee of the recently launched Business Coalition for Transatlantic Trade.

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. With a unique global network encompassing leading international business organizations, USCIB provides business views to policy makers and regulatory authorities worldwide, and works to facilitate international trade and investment. More at www.uscib.org.

Contact:
Jonathan Huneke, USCIB
+1 212.703.5043, jhuneke@uscib.org

More on USCIB’s Trade and Investment Committee

More on USCIB’s European Union Committee

World Bank President Upholds Doing Business Report

Published on June 13, 2013

As we reported last month, governments and interest groups that are highly critical of the World Bank’s annual “Doing Business” report and ranking launched a broad attack on the program under the guise of a review. In response, USCIB joined with the International Chamber of Commerce (ICC) and International Organization of Employers
(IOE) to urge the Bank to maintain the integrity and rigor of the report. These efforts appear to have paid off.

Last week, World Bank President Jim Yong Kim issued a statement in response to an independent review panel’s assessment of the Doing Business report, essentially upholding the report’s methodology and ranking while committing the Bank to work toward its improvement going forward.

Kim’s statement read in part:

“The World Bank Group’s work on business climate development, including the Doing Business report, is core to our mission of ending poverty, and in fact we expect it to grow. Our client countries are demanding it, because there is broad consensus about the need for jobs to eliminate poverty and boost growth. We are committed to this work.

“It is indisputable that Doing Business has been an important catalyst in driving reforms around the world. The Panel has made valuable suggestions for how to enhance the report, which merit consideration. Going forward, I will be pushing World Bank Group staff to focus their efforts on improving all aspects of Doing Business, including its data, methodology, and rankings. I am committed to the Doing Business report, and rankings have been part of its success.”

USCIB will continue to monitor the evolution of the Doing Business report, which we regard as a uniquely valuable catalyst for market-oriented reform, private investment, economic growth and job creation around the world.

Staff contacts: Shaun Donnelly and Adam Greene

New York Times: How the World Bank Makes Doing Business Easier

More on USCIB’s Trade and Investment Committee

More on USCIB’s Labor & Employment Committee