Trade and Investment Archives

USCIB Leads in Preparations for Upcoming China Meetings at OECD

Published on April 27, 2021

USCIB members and staff played leading roles in the April 23 China Expert Group’s preliminary meeting to preview and discuss Business at OECD (BIAC) presentations that will be made at the kick-off session of the OECD’s Informal Reflection Group on China in May. During the preliminary meeting, BIAC experts, including USCIB Senior Advisor Shaun Donnelly and Dell’s Eva Hampl (formerly USCIB and now a Vice Chair of BIAC’s China group), advanced key points that BIAC will emphasize including on state-owned enterprises (SOEs), investment, innovation and digitalization, and climate neutrality.

With regards to SOEs, Donnelly and others emphasized the importance of including provisions on SOEs in future investment and trade agreements, updating World Trade Organization (WTO) rules on subsidies, drawing China into multilateral consensus on export and development finance, as well as engaging China to reduce excess capacity in steel and rejoin the Global Forum on Steel Excess Capacity. The investment dialogue between China and the OECD should also be intensified and made more substantive, rather than political, according to Donnelly. Updating the investment policy review of China is also critical since the last review was done in 2008.

On innovation and digitalization, Donnelly noted the need to review efforts to onshore production in the name of supply chain resiliency, to study global value chains to ensure that policies are driven by OECD-generated facts and not politics and protectionism, to foster cooperation on IT and Artificial Intelligence (AI) information-sharing and standards’ development, engaging China on implementation and dissemination of AI principles and policies, as well as monitoring and acting on China’s development of virtual currency along with its impact on major currencies.

“Engaging China on harmonizing carbon pricing and emission trading schemes, pushing China more toward sustainable investment policies at home and abroad (such as their Belt and Road projects use of fossil fuels) and continuing to press for mitigation and strong environmental commitments from China is key,” said Donnelly.

Donnelly also led a discussion urging BIAC, as a business forum, to press the OECD and its member governments for substantive reform and results in its engagement with China and to worry less about protocol and diplomatic formalities.

“It was great to have USCIB and American business actively involved in BIAC’s preparations for this important China strategy session at the OECD,” added Donnelly.  “With a new Secretary General coming to OECD in June, a new U.S. Administration looking to play a leadership role at the OECD, and steadily growing concerns around the world about some of China’s policies and practices, it’s vital that Business at OECD and its American members focus on these issues of how the OECD can play a useful role with China.”

Donnelly added: “Eva Hampl from Dell did a great job leading Friday’s discussion on the innovation and digitalization issues.  She and I look forward to our roles as BIAC lead speakers in the session with the OECD China group.  It was also great to see several USCIB members logging on for the BIAC discussion, confirming that China issues, broadly defined, remain important priorities for USCIB and its broad, cross-sectoral membership.”

If members have issues, questions or suggestions related to this BIAC and OECD effort on China, please contact Allice Slayton Clark (asclark@uscib.org).

USCIB Welcomes New Director for Investment, Trade and China

Published on April 21, 2021
Alice Slayton Clark

USCIB welcomed Alice Slayton Clark this week as Director for Investment, Trade and China policy. Clark brings with her considerable experience in trade policy, having worked in a number of international law firms and consulting practices, as well as on Capitol Hill.

Most recently, Clark has been a Senior Government Relations Advisor for Jacobs Global Trade & Compliance LLC. Prior to this she spent time as an independent International Trade Consultant, and as an International Trade Specialist at Sidley Austin Brown & Wood, Powell Goldstein Frazer & Murphy, Graham & James, and Mudge Rose Guthrie Alexander and Ferdon. She began her trade career in the offices of Representative Robert Torricelli and Senator Bob Graham.

Alice received a BA in Government and Spanish from Oberlin College, and an MA in International Relations From Tufts University’s Fletcher School of Law and Diplomacy. In the past she has served as the President of the Women in International Trade (WIIT) group, and as a leader in local and school organizations.

Alice can be reached at asclark@uscib.org.

USCIB Defends Foreign Direct Investment at OECD

Published on April 14, 2021

USCIB has led private sector participation at a series of recent events organized by the OECD’s Investment Committee.  Kimberley Claman, director of international government affairs in Citi’s Washington office, was a lead speaker for the Business at OECD (BIAC) delegation in a condensed, virtual OECD annual International Investment Agreements Conference on March 29.

During a portion of the conference, titled “The Future of International Investment Agreements” on March 29, Claman laid out a coherent business vision on the importance of Foreign Direct Investment (FDI) flows, especially in a post-pandemic world, and of strong investment agreements to help provide the certainty, assurance and enforceability required by investors. “Typical of these OECD sessions, other speakers were skeptical of FDI and, especially of investment treaties, so having a strong business voice is critical,” said USCIB Senior Advisor Shaun Donnelly. “Kimberley did a great job.”

Donnelly returned to the OECD investment policy debates on March 31 as a lead speaker for BIAC in an early-morning, virtual seminar at the fifth session of the OECD’s long-running “FDI Qualities” policy dialogue. OECD staff laid out its latest research and analysis on FDI’s impact to an audience that included a diverse group of academics, NGOs and business representatives. The presentation focused on four areas selected from the United Nations Sustainable Development Goals (SDGs)– gender inclusivity, quality jobs and productivity enhancement, low carbon intensity, and promoting small and medium enterprises (SMEs).  Donnelly was the lead business commentator on the jobs and productivity session and spoke in the gender discussion, bringing a real-world, business perspective to the oftentimes academic nature of OECD seminars.

Donnelly was also back on the agenda as part of the BIAC Investment Committee leadership in the formal “stakeholder dialogue” with government representatives on the OECD Investment Committee at their April 8 wrap-up session following a week of OECD meetings.  This “stakeholder” session gave BIAC an opportunity to underline directly to the OECD committee its business perspectives and priorities on investment policy in a post-pandemic period.

“We see these OECD sessions on FDI policies, especially policies related to international investment agreements as important opportunities to present a business perspective on why FDI is so important to global economic growth, integration, trade and jobs,” said Donnelly, who is a retired U.S. Ambassador and trade negotiator.

Donnelly added: “Frankly, FDI, investment treaties and global economic integration are under unfair political attacks here at home and around the world.  We as business need to tell our story—how international investment flows, both inward and outward, are good for the American economy.  We welcome these opportunities to talk investment issues, not just with like-minded business groups but also with broader mix of participants that we find at OECD, UNCTAD and other UN sessions.  We are particularly grateful to Kimberley Claman from USCIB member company Citi for making time to take on a major speaking role. She did a fantastic job presenting how businesses in the real world approach investment decisions, and how those decisions are good for our economy.”

USCIB Provides Input to OECD Task Force on Countering Illicit Trade

Published on April 14, 2021

Through Business at OECD (BIAC), USCIB recently had an opportunity to contribute to an OECD Task Force on Countering Illicit Trade Plenary Meeting. During the Plenary, the Chair of BIAC’s Anti-Illicit Trade Expert Group and Chair of USCIB’s Customs and Trade Facilitation Committee, David Luna, highlighted the significant impact of illicit trade on the economy, businesses and people’s welfare. Luna also stressed the importance of collaboration among all stakeholders, including public and private, to counter the significant risks posed by illicit trade.

Luna used this platform to officially announce the launch of a new partnership program with the OECD, which seeks to strengthen public-private sector collaboration on tackling illicit trade. The partnership will commence with a special project focused on “the challenges of illicit trade for e-commerce” and will soon be followed by another project on “illicit trade in high-risk areas at the time of Covid-19.”

The partnership is also looking into launching two additional potential projects on Maritime Transports and Free Trade Zones.

Senior White House Official Peter Harrell Meets With USCIB Trade and Investment Committee

Published on March 31, 2021
Peter Harrell

USCIB’s Trade and Investment Committee welcomed White House Senior Director for International Economics and Competitiveness Peter Harrell during the Committee’s quarterly meeting on March 25.

Harrell, who is dual-hatted in both the National Security Council (NSC) and National Economic Council (NEC), outlined Biden Administration policies and priorities on a range of international economic issues, including trade, and according to USCIB Senior Advisor Shaun Donnelly, had a candid Q&A session with USCIB members.

“It was great to hear directly and candidly from a senior White House official playing a key role on a wide range of issues important to our members,” said USCIB’s new Senior Vice President for Innovation, Regulation, and Trade Brian Lowry. “I was especially impressed that Peter wanted to listen to views, as well as questions, from our members and offered candid answers. We look forward to a continuing dialogue with Peter Harrell and other senior Administration officials on a range of important and challenging issues.”

USCIB Co-Hosts Seminar of Digital Issues in Brazil’s OECD Accession  

Published on March 24, 2021

USCIB joined with the U.S. Chamber’s U.S.-Brazil Business Council and Brazil’s National Industrial Confederation (CNI) to co-host an important seminar on Brazil’s accession to the OECD.

The seminar on March 18 on Digital Issues in Brazil’s OECD accession featured speakers from the Brazilian and U.S. governments, digital trade experts from the OECD Secretariat and the Business at OECD (BIAC) coalition, in which both CNI and USCIB are actively involved, as well as private sector representatives.

The virtual session, the second in an on-going series on various critical policy issues in Brazil’s OECD candidacy, drew over seventy-five participants from Brazil, the U.S., and beyond.

“We has an excellent introductory discussion of a wide range of digital issues, including privacy, Artificial Intelligence (AI), data localization, and intellectual property protections,” said USCIB Senior Advisor Shaun Donnelly, who co-chaired the session. “Clearly both the Brazilian government and our friends at CNI and across the Brazilian private sector are enthusiastic about the possibility of Brazil becoming a candidate to join the OECD. That OECD accession process is never an easy one; OECD standards are high. But because it is an important partner for the U.S. and for our member companies, we continue to play an active and constructive role in this process, both in various BIAC expert committees in Paris and in efforts like today’s seminar with our members and partners like CNI and the U.S. and Brazilian Governments.”

 

USCIB Welcomes Senate’s Unanimous Confirmation Vote on USTR Tai

Published on March 18, 2021
Photo: Bill O’Leary/The Washington Post/Bloomberg via Getty Images

Washington, D.C., March 18, 2021—The United States Council for International Business (USCIB) salutes the Senate for its unanimous vote on March 17 to confirm Katherine Tai as the next U.S. Trade Representative (USTR), believing she is a solid choice for this important cabinet-level position, bringing outstanding experience as an attorney-advisor and litigator at USTR, as Chief Trade Counsel for the House of Representatives Ways and Means Trade Subcommittee, and as an attorney in the private sector.

America’s economic growth, jobs and competitiveness, our future, depends to a considerable degree on how well we are able to engage and compete in today’s, and tomorrow’s, global economy. USTR Tai will lead America’s efforts on some very important trade and investment issues including our leadership in the World Trade Organization (WTO), updated and improved rules on digital trade, reducing foreign trade and investment barriers hurting American companies and workers, and effectively enforcing our existing network of trade agreements. Tai’s experience with Congress, as well as her expertise in trade law, the WTO and in Asia and China will serve her, and our country, very well in ​this crucial position.

“USCIB knows and respects Ms.Tai and has worked well with her in her important role at the Ways and Means Committee,” said USCIB President and CEO Peter Robinson. “As an organization committed to open trade and investment flows, as well as high standards of corporate responsibility, all of us at USCIB and our member companies look forward to working with Ms.Tai to advance America’s economic interests and our shared values.”

Citi’s Senior Vice President and Managing Director of Global Government Affairs Rick Johnston, who also c​hairs the USCIB Trade and Investment Committee added, “Ms. Tai is the timely choice for this critical role as USTR at a very important an​d challenging time. Winning unanimous support from the Senate is a rare tribute to her abilities, her experience, and the respect she has earned from all quarters. The right leader at the right time for a very important job.”

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, the International Organization of Employers 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.

USCIB Welcomes Appointment of Mathias Cormann as New Head of OECD

Published on March 15, 2021
Mathias Cormann speaks during a Senate inquiry at Parliament House in Canberra, October 20, 2020. (AAP Image/Lukas Coch)

New York, N.Y., March 15, 2021—The United States Council for International Business (USCIB), which represents many of the world’s leading companies and which serves as the U.S. Member Organization of Business at OECD (BIAC), welcomed the announcement of Mathias Cormann, a former Australian finance minister, as the candidate to be appointed the next OECD Secretary General.

Phil O’Reilly, chair of Business at OECD, noted that the OECD’s ability to bring solutions to global challenges relies on its effective consultation with the private sector. “Our input has been critical to the success and implementation of major OECD initiatives,” O’Reilly stated. “Our strengthened collaboration will be essential to further increase the OECD’s policy impact in the coming years.”

“Multilateralism matters now, more than ever, and all of us at USCIB look forward to a productive partnership and a collaborative relationship with the new OECD Secretary General,” said USCIB President and CEO Peter Robinson. “USCIB and our members rely on BIAC’s work with the OECD to achieve the right policy responses and guidance. This cooperation will be critical as we all work together towards economic and social recovery from the COVID-19 pandemic.”

Cormann will succeed Ángel Gurría following his 15-year tenure with the Organization. “We thank Mr. Gurría for his strong leadership and look forward to hitting the ground running with Mr. Cormann to show that multilateralism delivers clear benefits for business and societies,” stated Hanni Rosenbaum, executive director of Business at OECD. Rick Johnston, Managing Director, International Government Affairs at Citibank, and a vice chair of Business at OECD, joined Robinson in expressing deep appreciation to Secretary-General Gurria for a long and cooperative relationship over his tenure at OECD.

Cormann will assume the role of Secretary General on June 1, 2021 and, upon assuming his post, will be the first person from the Asia-Pacific region to lead the OECD.

USCIB Leads Business in UN Discussions on Investor-State Dispute Settlement Reform

Published on February 24, 2021

USCIB Senior Advisor Shaun Donnelly and investment treaty expert Lauren Mandell from USCIB member firm WilmerHale represented USCIB at a virtual Working Group III (WG III) sessions of the UN Commission on International Trade Law (UNCITRAL).  For over three years, WG III has been discussing possible “reforms” of the Investor-State Dispute Settlement (ISDS) arbitration system.  The sessions had delegates and observers participating from around the world and every time zone. 

According to Donnelly, the European Union’s effort to establish a multilateral investment court continued to be the focus of discussions as it has been in the past three years.  Under the EU’s vision, the court would replace traditional ISDS – under which the investor appoints one arbitrator, the state appoints one arbitrator, and the parties jointly appoint the chair of the tribunal – with a “court” consisting of a pool of judges appointed solely by states, assigned to each case on a random basis. 

“The discussion last week focused on technical questions regarding how judges would be selected and appointed, including qualifications, nominations and screening procedures, and terms of office,” said Donnelly.  “However, amidst this technical exercise, numerous states, as well as USCIB and other observer groups, raised larger conceptual questions about the merits of a court. In particular, some states objected to losing their ability to appoint adjudicators in individual cases. Other states raised questions about the cost of establishing and maintaining the court.” 

The WG also started debate on the key issue of adding an appellate body which might review investor-state decisions, whether from an ISDS panel or a new investment court. USCIB actively participated in the discussions and posed many questions regarding the desirability of a court. 

As a next step, the working group tasked the UNCITRAL Secretariat with drafting legal text to flesh out the design of the court. According to Donnelly, it will be important for USCIB and USCIB member companies to actively monitor this drafting and negotiation process to ensure that the working group fully takes into account investors’ interests. 

USCIB is one of only a few non-governmental organizations representing business that is accredited to participate in the working group discussions.  

“It’s not clear how much real progress was made but there was real debate on some important issues,” Donnelly said. “My colleague Lauren and other expert observers got chances to point out major questions and problems with the EU’s investment court proposal. Increasing numbers of member states also seem to be focusing on the flaws in the EU’s radical proposal which would eliminate investors’ role in selecting arbiters. The U.S. government delegation did an outstanding job. We will continue to work with interested government delegations as well as legal, arbitration and business groups allies. We encourage more USCIB members to get involved with us in this important negotiation.”     

USCIB Statement on the WTO’s New Director-General

Published on February 8, 2021
Photo credit: Martial Trezzini/EPA, via Shutterstock

New York, N.Y., February 08, 2021: The United States Council for International Business (USCIB), which represents many of America’s leading global companies, welcomed news ​of the Biden administration’s decision to support Dr. Ngozi Okonjo-Iweala as the new Director-General of the World Trade Organization (WTO). This decision is indicative of a shift in U.S. support for the WTO and its view of the criticality of the multilateral trading system. Further, the decision has been viewed as an affirmation of the U.S. commitment to constructively address substantive and procedural reforms.

Dr. Okonjo-Iweala, who will be the first woman to lead the organization, has shared that she intends to take a more active role as Director-General and to act as a sounding board to try to find common ground among the trade body’s disparate membership. Since the departure of former Director-General Roberto Azevedo in August of 2020 and the prior refusal of the U.S. to support Dr. Okonjo-Iweala, the ​future leadership of the WTO has been uncertain.

“Open trade and global value chains are fundamental drivers for recovery from the current global crisis,” said USCIB Senior Vice President for Innovation, Regulation, and Trade Brian Lowry. “Once formally approved by the WTO General Council, Dr. Okonjo-Iweala will have the opportunity to lead the organization into a new era of increased action and inclusive multilateralism.”

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, the International Organization of Employers 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.