USCIB Congratulates Sean Patrick Maloney on His Confirmation as Next US Ambassador to OECD 

Photo: Tom Williams/CQ-Roll Call, Inc

Washington DC, March 20, 2024—The United States Council for International Business (USCIB) congratulates Former Representative of New York Sean Patrick Maloney on his confirmation as the next U.S. Ambassador to the Organization for Economic Cooperation and Development (OECD). Maloney was confirmed by the U.S. Senate on March 12. 

As the U.S. representative to Business at OECD, the private sector voice in OECD policymaking, USCIB attests to the positive impact of the OECD across a range of issues that affect the competitiveness of the U.S. economy. These issues include investment, taxation, trade, energy and environment, health, competition, consumer policy, bribery and corporate governance. 

“USCIB is delighted to welcome Representative Maloney as the next OECD Ambassador,” said USCIB President and CEO Whitney Baird, who is a former Chargé d’Affaires of the U.S. Mission to the OECD. “The OECD is a critical forum for our members—it is uniquely open and receptive to the views and real-world experiences of the private sector. We look forward to working with Representative Maloney to support the OECD’s mission to promote global economic growth, which benefits American businesses, consumers, workers and taxpayers.” 

For decades, USCIB members have relied on the OECD as an institutional voice of evidence- and data-based policy guidance and assessment, influencing policies and practices in markets important to U.S. business competitiveness and to jobs generated for U.S. taxpayers. 

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.

USCIB Files Submission With FTC on Non-Compete Clauses in Employment Contracts

USCIB filed a submission with the Federal Trade Commission (FTC) April 19, opposing its proposed rule to ban employers from utilizing non-compete clauses in employment contracts, a practice that violates Section 5 of the Federal Trade Commission Act, according to the FTC.

USCIB’s submission argues not only that the FTC lacks rule-making authority to even issue the proposal, but the proposed rule makes improper assumptions regarding the applicability of state law versus a federal blanket ban and that trade secrets safeguards serve as a substitute for non-competes. The proposed rule would ban non-competes for high income workers or workers with access to confidential information, which is a an essential tool for companies to protect intellectual property, trade secrets and other confidential information. The submission makes the strong case that non-competes should continue to be allowed on a case dependent basis.

“USCIB challenges the lack of evidence and methodologies used to support the FTC’s proposed rulemaking on non-competes clauses and is alarmed about the deleterious impacts a blanket ban would have on U.S. industries,” said USCIB Vice President for International Investment and Trade Policy Alice Slayton Clark. “Not only does it break with longstanding legal precedent such as the consumer welfare standard and fact-specific inquiry, but it will irreparably harm U.S. companies that rely on non-competes to safeguard intellectual property rights and trade secrets.”

The FTC has received over 15,000 comments on its proposal, showing the broad impact it would have on companies and workers.  To read the full submission, click here.

USCIB Releases 2023 Trade and Investment Agenda

USCIB released to policymakers and the press its 2023 Trade and Investment Agenda, an annual paper outlining Member objectives for the year. The 2023 priorities include:  

  • Free, open and fair markets are imperative to competitiveness, well-paying skilled jobs and broad-based economic prosperity. 
  • Companies and workers depend on a stable, rules-based trading system to facilitate global commerce and support jobs. The WTO is the critical cornerstone of the global system and is important for bringing countries together to reach new agreements, monitor commitments and resolve disputes. 
  • Foreign direct investment strengthens the U.S. economy and is a key tool in spreading democracy and American values while helping emerging economies recover from the global pandemic, meet sustainable development goals and build green infrastructure consistent with the objectives of the G7 Partnership for Global Infrastructure and Investment (PGII) initiatives. 
  • Agile and quick responses to emerging global trade and investment issues facilitate innovation, workforce resiliency and green development goals. To sustain its competitiveness, the U.S. must be at the forefront in shaping international rules for the new economy, especially in the areas of sustainability, circular economy, socio-economic equality, worker rights, digital policy and emerging technologies. 
  • It is important to hold trading partners accountable for commitments made in trade agreements, but any retaliatory actions should be exacted with proportionality, meaningful stakeholder consultation, and careful consideration of harmful impacts to domestic jobs, companies, and consumers. 
  • A robust, effective, and durable trade policy requires consultation, collaboration and good will between the branches of the U.S. government as well as with the business community. 

“The USCIB annual priorities paper is instrumental to Washington policymakers because it reflects the voice of a robust and diverse group of U.S.-based global companies representing $5 trillion in revenues and 11.5 million employees from every sector of the economy,” said USCIB VP for International Investment and Trade Policy Alice Slayton Clark. “Our members believe in free, open and fair markets as imperative to U.S. competitiveness, well-paying skilled jobs and broad-based economic prosperity.” 

USCIB’s priority paper was developed by the USCIB Trade and Investment Committee, which is chaired by Charles R. (Rick) Johnston, managing director for Global Government Affairs at Citigroup. 

The document underscores that, “as the world grapples with existential threats and economic disruptions posed by climate change, global pandemic, geostrategic challenges and hybrid warfare, it is imperative that the United States lead in shaping outcomes and partnerships that strengthen U.S. supply chains.” The United States must seize the opportunity to be at the forefront in securing open markets, competitiveness and innovation, sustainable development, and corporate responsibility, supported by international engagement and regulatory coherence, Clark said.  

A summary document of the full 2023 agenda is available here.

Temperatures Soared in Geneva and So Did the WTO!

Washington D.C., June 17, 2022—Despite a shaky start, the WTO negotiators delivered a historic trade deal this morning. After hours of negotiations, the 164-country organization adopted the “Geneva Package” with commitments on some very difficult issues, including pandemic response, intellectual property, fisheries, food security, electronic commerce and institutional reform.

For many, this Ministerial was about the continued viability of the WTO. Recent struggles caused by increased protectionism and previous Ministerial Conferences that created few – if any – outcomes, raised serious questions about the rules-based trading system that grew out of the GATT in 1995. Concerns have ranged from relevance to functionality to value.

The WTO adoption of a ministerial decision to waive intellectual property rights on COVID-19 vaccines raises serious questions and presents a number of risks. This waiver under the WTO TRIPs Agreement will not solve vaccine access issues but, rather, it brings dangerous implications on incentives for innovation for future health challenges and future pandemic preparedness and response.  As disappointing and counter-productive as this decision is, business continues to work to advance vaccine literacy and fight COVID-19.

The Ministerial Statement on WTO Reform has charted a path forward for the trade body that is expected to address longstanding concerns and set a process for discussions on how the WTO can be reformed to be fit for purpose.

The “Geneva Package” covers a range of topics. A group of Ministerial Declarations was adopted on WTO response to emergencies covering food insecurity; export prohibitions on World Food Programme food purchases; and WTO pandemic response and preparedness.

A partial deal to curb fishing subsidies was reached; however, it fell short of a fuller agreement that has been under negotiation for more than 20 years. The agreement addresses rules to prohibit subsidies for illegal, unreported and unregulated fishing, while action on subsidies for fuel, ship construction and other areas was left unresolved.

Negotiators wrestled to address divergent views on the continuation of a moratorium on customs duties on electronic transmissions that has been in place since 1998 but was set to expire at the end of the ministerial. A handful of countries challenged the benefits of the digital economy for the developing world, seeking to end the moratorium, gain policy space to address the digital divide and collect needed customs revenues. Ultimately, delegates agreed to an extension of the moratorium with a commitment to study development impacts and revisit the issue at the next Ministerial Conference.

“USCIB congratulates WTO Director General Ngozi and all participants in MC12 for proving that multilateralism is alive and still functional in Geneva,” said Brian Lowry, USCIB Senior Vice President, who is reporting from Geneva at the ministerial meeting as an NGO delegate.

Several concerns about agriculture went without resolution. “The lack of a declaration on these concerns was a disappointment to some but the overall success of MC12 is noteworthy,” said Lowry.

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. USCIB is the U.S. affiliate of the International Chamber of Commerce (ICC), the International Organization of Employers (IOE) and Business at OECD. More at www.uscib.org.

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

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 Welcomes Commitment by G7 to Inclusive Global Recovery

New York, N.Y., June 16, 2021—Following the G7 Leaders’ Summit in Cornwall, UK, the United States Council for International Business (USCIB) welcomes the G7’s resolute commitment in this time of crisis to a cooperative and inclusive global recovery built on democratic values, private sector partnership, open trade, investment and sustainability.

We are proud to embrace the G7’s enduring ideals of free open societies and democracies, and its support for inclusive multilateralism in action.

We agree that tackling root causes of human rights abuses and combatting failures of integrity and transparency are essential to any effort to build back better and importantly, to also provide the fullest possible access to healthcare and vaccines worldwide.

We are committed to eliminating forced labor and other human rights abuses from global supply chains, and to advance the uptake of the OECD Guidelines for Multinational Enterprises and the UN Guiding Principles on Business and Human Rights. We applaud renewed attention on eradicating corruption as it erodes public trust in government, wastes resources and presents an obstacle to needed economic and social development and our shared vision of achieving the Paris Agreement and UN 2030 Goals.

We are inspired by USCIB members mobilizing to help meet the ongoing pandemic challenge. Vaccinating the world against COVID-19 is essential to economic recovery; this urgent task will require production, as well as widespread distribution and administration of vaccines. The private sector serves as an important partner in this endeavor and can assist with vaccine-deployment strategies based on efficiency and equity. A sustainable, durable solution will address a host of issues, including: re-distribution of excess vaccine supplies to countries that face shortages; removing regulatory and trade barriers to vaccine production and distribution; efficient supply chain operations; procurement challenges; the potential risks associated with counterfeit and illicit trade in medical goods; and addressing hesitancy and misinformation about vaccines. While more needs to be done, the U.S. and G7 support for COVAX and Act-A are big steps in the right direction. Through Business Partners to CONVINCE (BP2C), USCIB is advancing actionable workplace strategies for vaccine adoption while highlighting the vital role employers play in educating their employees on the facts about COVID-19 vaccines.

We believe that private sector innovation and its wide deployment, whether in healthcare solutions, digital access or climate change, will be fundamental to attain the ambitious targets and actions set out in the communique. The G7 has emphasized the need for urgent reform and revitalization at the World Trade Organization (WTO) and incentivizing innovation as key priorities in all of these areas. We couldn’t agree more.

We appreciate the G7’s ongoing dialogue and cooperation with business, and thank the Confederation of British Industry (CBI) for coordinating this year’s B7 process.

USCIB Defends Foreign Direct Investment at OECD

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 Welcomes Senate’s Unanimous Confirmation Vote on USTR Tai

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

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 OECDRick 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.