USCIB Meets with OECD to Share US Industry Accession Priorities 

USCIB organized a member briefing on February 14 with OECD officials to discuss the accession process and to share USCIB Members’ market access concerns regarding the five accession candidates: Brazil, Bulgaria, Croatia, Peru and Romania. USCIB also shared with the OECD officials an updated business priorities document, detailing industry concerns for each of the accession candidates. 

Members learned that the candidacies of Croatia, Bulgaria, Peru and Romania are most advance as they consider the accession process a national priority. According to USCIB Senior Vice President for Trade, Investment and Digital Policy Alice Slayton Clark, Brazil is taking a more cautious position, setting up a working group on OECD matters to determine how to approach accession. Interestingly, the new administration of Javier Milei in Argentina seems committed to moving forward with adoption of a roadmap for accession after putting the invitation on pause for the past two years. Finally, Thailand has requested to accede, and the OECD announced this week it is opening accession talks with Indonesia, a process that will take many years.     

It was made clear during this meeting that OECD accession provides powerful leverage for adoption of reforms in candidate countries, an opportunity for industry to resolve market access concerns. It is imperative to act early in this regard and provide detailed input that can be incorporated into market openness reports used to measure candidate country readiness.  

One main area of concern raised during the discussion was candidate country positioning on the moratorium on customs duties on electronic transmissions, a question that will be considered at next week’s World Trade Organization (WTO) 13th Ministerial Conference (MC13) in Abu Dhabi. USCIB urged that all OECD members and accession candidates fully support the moratorium to be in alignment with OECD research, principles and best practices. 

Click here to download USCIB’s OECD Accession Priorities document. 

USCIB Adopts a Comprehensive Strategy to Renew the WTO E-Commerce Moratorium   

Ahead of the World Trade Organization (WTO) 13th Ministerial Council (MC13) next week, USCIB has been advocating extensively to extend the WTO moratorium on customs duties on electronic transmissions.  

Among these efforts, as reported by Inside US Trade, was a multi-association letter signed by USCIB President and CEO Whitney Baird, along with the presidents and CEOs of other associations such as the U.S. Chamber of Commerce. The letter was sent to U.S. Trade Representative Katherine Tai, National Security Council’s Jacob J. Sullivan and National Economic Council Director Lael Brainard. 

USCIB also signed a Global Industry Statement urging the WTO to support the continuation of the Moratorium at MC13. The Statement, comprised of nearly 200 groups from more than 20 sectors in 130 countries, was covered by Politico. 

A few WTO members, such as India, Indonesia and South Africa, are threatening to block renewal of the moratorium for policy and political purposes. As such, USCIB joined several industry coalition letters to key government officials in these countries expressing concern about the potential collapse of this longstanding multilateral agreement and how it would negatively impact trade and investment in these economies.   

The letters argue that the moratorium is essential to the interests of millions of local enterprises and workers. The economic studies that analyze the potential impacts of customs duties show that countries hurt themselves by raising barriers and increasing costs for a wide variety of enterprises to access knowledge, information, data, and digital tools needed to compete in the global marketplace. 

For India, customs restrictions on the Internet are at odds with Prime Minister Modi’s vision of a $1 trillion “Digital India” economy. In fact, such restrictions could well cause India’s digital economy to shrink rather than grow given its large share of software development and global data processing activity. If India imposes customs duties on inbound data transfers – coupled with restrictions on outbound data transfers proposed under various other measures – India will isolate itself from the world. 

USCIB President and CEO Whitney Baird and USCIB Senior VP Alice Slayton Clark will be at MC13 in Abu Dhabi next week, where this topic will be a top priority. 

“Allowing the moratorium to expire would be a historic setback for the WTO, representing an unprecedented termination of a multilateral agreement in place nearly since the WTO’s inception – an agreement that has allowed the digital economy to take root and grow,” said Clark. “It risks destabilizing the very fabric of a multilateral trading system already under intense strain.” 

Baird and Wanner Focus on Trade and Tech at the Consumer Electronics Show (CES) 

USCIB President and CEO Whitney Baird and VP for ICT Policy Barbara Wanner attended the Consumer Electronics Show (CES) in Las Vegas earlier this month. Dubbed the “most powerful tech event in the world,” CES brought together over 130,000 participants, including many USCIB members and representatives of governments from across the globe.  

Whitney Baird (USCIB) and Tanneasha Gordon (Deloitte)

Baird and Wanner had a packed schedule in Las Vegas meeting members and USG officials, including Tanneasha Gordon (Deloitte), Nadia Hansen (Salesforce), Dr. Oliver Campbell (Dell), JoAnn Stonier (Mastercard), Erica McCann (Amazon) and Dr. Vanessa Chan (Department of Energy). They also attended panels and events on AI and the impact on jobs, emerging technologies shaping the tech workforce, privacy and cybersecurity, and sustainability and circularity in tech.  

During a panel on “Trade in Tech. What is it good for? Absolutely Everything!” Baird joined Ambassador Mark Lippert (Samsung), Ambassador Susan Schwab (NFTC) and Dr. Rafaelita Aldaba (Philippine Economic Zone Authority) to discuss how trade policy promote peace and innovation globally.  

“Trade has long demonstrated its benefit in lifting nations out of poverty, promoting shared prosperity, fostering economic interdependence and trust, and providing an incentive for peaceful resolution of disputes,” said Baird. “Technology has a similar unifying effect, through the devices, gadgets and transmissions that inform people and connect cultures and countries around the globe. Trade in technology, therefore, carries a double dividend on peace.” 

Baird also discussed USCIB’s affiliation with the Organization for Economic Cooperation and Development (OECD), made possible through Business at OECD (BIAC). She noted USCIB regularly contributes U.S. industry practices and priorities to inform OECD research and policy guidelines. Through its own standing and through our affiliates, USCIB advocates strongly for WTO rules that promote connectivity, the free flow of data with trust across borders, and a permanent moratorium on customs duties on electronic transmissions. USCIB has also pressed for negotiation of two World Trade Organization (WTO) Information Technology Agreements to eliminate all import duties on a wide range of technology products including computers, telecommunications equipment, software and educational devices.   

The “Trade in Tech” session was moderated by Ed Brzytwa (International Trade Consumer Technology Association).  

“This was the first time USCIB attended CES in an official capacity,” said Wanner. “We were delighted by the many opportunities we had for enhanced engagement with U.S. government officials and our own members on topics of significant relevance to our trade and digital policy work. We look forward to more CES events in the future.” 

USCIB Co-Signs Letter Condemning Administration Decision to Withdraw Support for Cross-Border Data Flow Proposals at WTO

USCIB signed a multi-industry association letter decrying the Biden Administration’s decision to end its support for proposals on data flows, data localization and source code, as part of the World Trade Organization (WTO) Joint Initiative on E-commerce (JSI) negotiations. The letter expresses USCIB’s deep dismay regarding a reversal on these core disciplines and U.S. leadership on digital economy priorities.

The letter, co-signed with associations such as the U.S. Chamber of Commerce, National Association of Manufacturers and Recording Industry Association of America, expresses concern that this decision undermines the United States Trade Representative’s (USTR) longstanding commitment to protecting cross-border data flows, which facilitate core values and goals, such as the spread of information, freedom of expression and ability to solve complex global challenges. The letter criticizes USTR for signaling an end to the Administration’s fight against discrimination affecting American companies and their workers, as well as legitimizing digital protectionism across the globe, which strengthens adversaries and hurts American businesses.

The letter encourages USTR to reverse this harmful decision and return the U.S. to its role of global leader in a rules-based trading system that benefits American companies, aligns with the U.S.’s core values and empowers the government to push back against regulatory overreach by authoritarian regimes.

USCIB President and CEO Whitney Baird also spoke with leadership at USTR to express concerns about the implications of this policy reversal at IPEF and the WTO JSI for e-commerce negotiations. Baird refuted the narrative that the digital negotiations only benefit the ICT industry, stressing they also serve the much larger universe of manufacturers, retailers, financial services and logistics and professional services firms that rely on these services and technologies. USCIB made clear that a U.S. vacuum on the global stage leaves space for states like India to step in and advance digital protectionism.

USCIB also is raising concerns at the OECD through our voice in Business at OECD (BIAC) to ensure continued support for strong disciplines that promote barrier-free data flows and legitimate access to digital products and services. USCIB will continue to strategize on next steps regarding getting the U.S. position back on track on digital issues at the WTO, IPEF and beyond.

USCIB Participates at Internet Governance Forum (IGF) in Kyoto, Hosts USCIB Foundation/BIAC Roundtable on AI 

Elizabeth Thomas Raynaud (OECD), Nicky Jackson Colaco (Roblox), Nicole Primmer (Business at OECD), Paula Bruening (Casentino Strategies), Barbara Wanner (USCIB), Liz Thomas (Microsoft), Maylis Berviller (BIAC), Nan Schechter (USCIB), Minami Kakuda (BIAC)

USCIB attended the 18th Internet Governance Forum (IGF) in Kyoto earlier this month. The Forum featured the theme of “The Internet We Want – Empowering All People” and was headlined by notable speakers such as Japanese Prime Minister Fumio Kishida. USCIB Vice President for ICT Policy Barbara Wanner was on the ground, along with USCIB Policy Associate Nan Schecter.   

Wanner coordinated USCIB members at the IGF including Amazon, Disney, EY, Google, Lego, Meta, Microsoft, Netflix and Verisign. USCIB members offered insights and expertise throughout the week in main sessions, workshops, and the “hallway meetings” that participants have come to value from the IGF. USCIB also participated in conversations on critical policy topics, including responsible AI governance, the upcoming WSIS+20 review to renew and reaffirm the IGF mandate, negotiations for a UN Cybercrime Convention that will prioritize law enforcement and stifle criminal activity and the Declaration for the Future of the Internet. 

A joint project between Business at OECD (BIAC) and The USCIB Foundation, entitled “Data Privacy in the Metaverse and Immersive Technologies,” was also spotlighted at two IGF side events. 

On October 9, USCIB members and stakeholders convened at a roundtable to discuss data governance issues related to emerging metaverse and immersive technologies. The conversation focused on the Asia Pacific region and highlighted how companies such as NEC and Toyota are employing metaverse training, content development and research funding to promote growth in the region of the metaverse. 

On October 11, Wanner moderated the panel “Creating virtual worlds? A case for innovation and policy that protects users and fosters trust.” Part of the Nikkei Digital Forum, this premier event featured speakers from the OECD, Microsoft, Roblox, and the Japan-based Center for International Economic Collaboration who discussed the status of development and adoption of immersive technologies, as well as necessary policy considerations for its deployment. 

“I want to thank the Government of Japan for hosting such an important event and for highlighting AI governance as the dominant topic for the 18th Forum,” said Wanner. She continued, “IGF as a whole, as well as the joint events between The USCIB Foundation and BIAC, allowed our members to share their technology priorities and enabled us to advocate for balanced policy and regulatory approaches to AI and the Internet.” 

USCIB ICT Committee Announces Leadership Changes

USCIB has announced the appointment of Mastercard Fellow JoAnn Stonier as the new chair of the USCIB ICT Policy Committee, effective October 1. Current Committee chair Ellen Blackler (Disney) will be stepping down from the chairmanship on September 29. Blackler will remain a member of the ICT policy committee.

“We’d like to express our gratitude to Ellen for five outstanding years of leadership, during which she led the committee through many challenging issue areas,” said USCIB Vice President for ICT Policy Barbara Wanner. “Concurrently, we’re delighted that JoAnn will take on the important role of driving the committee’s ongoing work and strategy.”

According to Wanner, Stonier has been involved in the Committee’s work for many years and, through USCIB’s affiliation with Business at OECD (BIAC), has made impressive contributions to the OECD’s privacy and data governance work. She also participated in the recent Metaverse Roundtables in May and June 2023, which were organized by BIAC and The USCIB Foundation.

USCIB Provides Comments on China’s WTO Compliance, Urges Customs Reform, IP Protection and Open Market Access

USCIB submitted comments on September 20 to the U.S. Trade Representative (USTR) regarding China’s WTO compliance with its World Trade Organization commitments. The submission raised a variety of concerns, including shortcomings with respect to intellectual property (IP) protection, trade facilitation, and market access.

The report notes that although China has improved many of its key IP laws since acceding to the WTO, there is a continued need to pressure China to comply with the WTO Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS) standards. According to USCIB, China provides inadequate criminal liability for copyright offenses and establishes inadequate thresholds for making a copyright case.

The submission also focuses on sectoral issues, such as agriculture and grain exports, high levels of piracy in the audiovisual sector and a lack of openness in the Chinese telecommunications market. For example, China’s Telecom Services Catalog incorrectly classifies a wide range of ICT technologies and services as telecom services, and there is increased scrutiny over China’s Cybersecurity Law. The comments put pressure on the U.S. government to address these key areas for global commerce, trade facilitation and security.

Echoing USCIB’s 2022 submission regarding China’s WTO compliance to USTR, the comments continue to voice concern over the Section 301 tariffs imposed against Chinese imports.

“USCIB condemns the unfair Chinese practices identified under the Section 301 investigations, including forced technology transfer requirements, intellectual property infringements, state interventions, and other unfair trade practices that harm U.S. companies, workers, consumers, and competitiveness. While we remain 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, raising the cost of doing business in the United States and increased prices for U.S. families and workers,” said USCIB Vice President for International Investment and Trade Policy Alice Slayton Clark.

“China remains an important player on the world stage, and although cooperation can be challenging, we must continue to push for transparency and open market access,” she added. “Ensuring that China remains compliant with WTO regulations by bilaterally addressing challenges must remain a priority for the United States.”

Wanner Delivers Stakeholder Intervention at UN on New Cybercrime Convention 

Barbara Wanner

This week, the United Nations convened a meeting to finalize a new draft UN Convention that would counter the use of ICTs for cybercrime. USCIB Vice President for ICT Policy Barbara Wanner was on the ground in New York and delivered a stakeholder intervention that focused on scope of the Convention and data protection safeguards.  

The negotiation for the text of this new Convention, officially called the “Ad Hoc Committee to Elaborate a Comprehensive International Convention on Countering the Use of Information and Communications Technologies for Criminal Purposes,” aims to address the abuse of information technologies to scale and speed crimes such as terrorism, human trafficking, smuggling of migrants, drug trafficking, and illicit manufacturing and trafficking in firearms.    

Wanner’s intervention reflected comments also made by the International Chamber of Commerce (ICC), USCIB member Microsoft, and the Cybersecurity Tech Accord. 

“The Convention should align with existing instruments and data protection standards to avoid conflict of laws, confusion, delays, increased costs, and potential cooperation breakdown,” said Wanner. Wanner also addressed the draft’s provisions for government access to personal data, related to a wide variety of cyber-enabled crimes that are not currently defined in the draft without appropriate safeguards.  

“Combined with the lack of clarity on jurisdiction for this category of crimes, data custodians will have no way of determining whether government requests for data access are reasonable and proportional,” added Wanner. 

Wanner referenced the OECD Declaration on Government Access to Personal Data Held by Private Sector Entities, adopted in December 2022, as a good model.  

“The OECD framework aims to clarify how national security and law enforcement agencies can access personal data under existing legal frameworks,” added Wanner. 

USCIB Joins Industry in Statement Supporting Digital Trade in Africa

USCIB joined 11 other industry associations to urge negotiators to develop comprehensive and in-depth pan-African digital trade commitments for the African Continental Free Trade Area (AfCFTA).

According to the statement, Africa is positioned to become a global leader in developing global transformation opportunities across a multitude of sectors. In order to facilitate this, access to the global digital economy must be a key part of the continent’s strategy for growth and development. A digital transformation for Africa will improve innovation, facilitate job creation, and ease efforts for achieving equity, particularly for micro/small/medium-sized enterprises (MSMEs). The continent holds an enormous market for job opportunities that incorporate emerging digital technologies, and facilitating this transition through the removal of infrastructure barriers is crucial.

The statement calls for “proactive efforts by African leaders” to support clear digital trade rules for the AfCFTA and demands a steady commitment to the digital transformation by implementing these rules in an efficient manner. Specifically, USCIB and industry leaders urge that AfCFTA establishes a moratorium on tariffs and customs formalities for electronic transmissions, prohibits restrictions on the cross-border flow of data and forced localization of computing facilities and implements transparent and accountable regulatory practices for digital trade.

USCIB encourages African leaders to support growth on the continent by implementing clear and strong digital trade rules that are founded on best practices and supported by a commitment to transparency and digital innovation.

The full statement can be found here.

Global Associations Request Consultation With India on Proposed Telecoms Bill

USCIB joined nearly a dozen other associations, such as BSA, ITI and the App Association, to request a consultation with the government of India on India’s proposed Telecommunications Bill. India is in the process of finalizing a second draft of the Bill.

The associations, which represent global companies that develop, sell or rely on digital technologies and services, support the Government of India’s commitment to promoting digital inclusion and catalyzing the next generation of digitally enabled economic growth.

The letter states: India is a global technology leader that creates and supplies goods and services to contribute to a productive, competitive, and innovative global economy and society. Thoughtful regulatory approaches have been critical to that success.

To read the letter, please click here.