USCIB Letter in Support of U.S. Funding for International Organizations
April 19, 1999
The Honorable Jesse Helms
306 Senate Hart Office Building
Washington, DC 20510-1401
Dear Senator:
The United States Council for International Business would like to present some views in connection with your consideration of funding for international organizations. As the American affiliate of the main international business organizations - the International Chamber of Commerce (ICC), the Business and Industry Advisory Committee (BIAC) to the Organization for Economic
Cooperation and Development (OECD), and the International Organisation of Employers (IOE) – we represent American business positions in several key intergovernmental organizations, including the World Trade Organization (WTO), the OECD, and the International Labor Organization (ILO).
Our members - some 300 major U.S. multinational corporations - are strongly of the view that full U.S. participation in international organizations is fundamental to U.S. leadership around the world. We are concerned that any cuts in the U.S. contributions to the budgets of these organizations will adversely affect important objectives of the U.S. business community and do serious damage to U.S. economic interests.
The U.S. business community places the highest importance on the WTO. Full funding and political support assures American leadership in opening new markets for American exports and increased wealth and job creation in the U.S. Trade now accounts for some 30% of U.S. Gross Domestic Product. Trade not only creates new jobs, but jobs linked with trade have been demonstrated to pay better than those linked to the domestic economy only. Predictable, universal and enforceable trade disciplines as embodied in the WTO allow the U.S. to exploit its competitive advantage, particularly as the next negotiating round will focus on agriculture and services. As the WTO moves to increase its membership beyond its current total of 134 countries, U.S. leadership is more essential than ever before.
Clear and predictable rules for open trade are essential for U.S. business. The rules of the WTO are comprehensive and apply to all members. It is vital that the U.S. provides its support for an open trading system and to ensure that that WTO disciplines are fully implemented and transparent. This is particularly important as the U.S. is the world's premier exporter. One of the new features of the WTO is the strong multilateral dispute resolution mechanism, which has shown expeditious results. Moreover the WTO has taken on substantially greater workload since the completion of the Uruguay Round. Its resources also need to be expanded to meet the needs and disciplines of a rapidly integrating global economy.
The U.S. business community also places a high priority on the OECD, which has been the primary forum for consultation and cooperation among the industrialized democracies since the early 1950s. American business has a vital stake in a wide variety of OECD policy activities such as electronic commerce, biotechnology, taxation, competition, environment, telecommunications, and review of the OECD Guidelines for Multinational Enterprises. Business has been greatly concerned and involved with tackling unemployment by implementing the policy prescriptions for labor and product market deregulation outlined in the OECD Jobs Study. The OECD has recently proven its importance to broad U.S. interests by promulgating the International Convention on Bribery and Corruption.
The OECD plays a very important role in maintaining open markets and free trade. It traditionally has supported international trade negotiations through sound policy analysis and the identification of market access opportunities and problems. In other fields, the OECD has made valuable contributions to safer handling of chemicals through greater consistency in regulatory requirements. It has also created a risk-based system for managing hazardous waste that allows for environmentally sound re-use, recycling, and disposal of wastes.
The work of the International Labor Organization is also of crucial importance to the international interests of U.S. business. This is particularly so at present since one of its recent initiatives may provide the means to ensure expanded U.S. trade and investment. The initiative in question, the ILO Declaration on Fundamental Principles and Rights at Work, passed at the 1998 International Labor Conference, was initiated and spearheaded by the USCIB. This Declaration is a political statement of the 174 member states stating that they will adhere to certain fundamental human rights principles. The enclosed brochure describes how the Declaration can be used to address worker rights issues without linking them to trade and investment agreements.
We believe that the Declaration will provide an opportunity to address serious labor abuses in countries such as China, which has not ratified the fundamental ILO human rights treaties. As a member of the ILO, China has now acknowledged its obligation to uphold certain principles, such as freedom of association and the abolition of child labor and forced labor. A follow-up procedure will allow the constituents of the ILO - governments, business, and labor - to examine how effectively these principles are being put into law and practice.
The ILO plays an important role in the protection of human rights as well as labor rights. Within the U.N. system, the ILO has the most sophisticated and effective system to monitor human rights violations. The ILO's extensive information on human rights violations continues to be of critical importance to U.S. foreign policy, as historically exemplified in the cases of Poland during the martial law period and Guatemala. The accomplishments of its tripartite Freedom of Association Committee have made a major contribution to protecting individual rights and democratic institutions. No other, body in the U.N. system has been tougher in its criticism of human rights violations in China and Cuba.
The ILO is unique among U.N. specialized agencies because its tripartite structure provides U.S. business the opportunity to participate along with the business communities of other countries in the development of ILO policies and supervision of ILO activities. It is the only such international organization; eliminating U.S. funding for the ILO effectively cuts off the U.S. business community from participating in issues in which it has a vital stake. We have used this structure to place on the agenda of the ILO a Convention to eliminate the worst forms of child labor. This Convention, which will be finalized this June, has the strong support of all the ILO constituents. It will achieve time bound goals of eradicating child bonded labor, child prostitution, and similar egregious forms of child labor. In addition, the ILO currently has the most effective international operational program aimed at eliminating this problem.
These issues demand U.S. leadership. Our members strongly believe that in order to maintain U.S. influence in the ILO, the U.S. must be seen to be fully supporting the organization by paying its current dues in full. It is clear that the ILO will continue to exist despite any eventual cut in U.S. funding. However, a downwards shift in the U.S. contribution to the ILO could do great damage by weakening our credibility and influence over the ILO’s policies and standards, which will nevertheless continue to have an impact on American business operations around the world.
We urge you to support full funding for the International Labor Organization, as well as for the Organization for Economic Cooperation and Development, and the World Trade Organization. Our engagement in these vital international organizations required full U.S. funding. We would welcome an opportunity to come to Washington to discuss these matters further with you.
Sincerely,
Thomas M.T. Niles
President
