Open Markets

Securing Open Markets

U.S. multinationals operate in a world of highly competitive, multi-country supply chains, through which trade and investment must flow seamlessly. USCIB and its global network advanced sensible policies to expand global trade and investment at all levels – from making high-level recommendations to the G20 leaders to delivering targeted business advice to those negotiating trade pacts and other market-opening instruments.

A 21st-Century Trade and Investment Agenda

In 2011, we pressed for a positive trade agenda that will meet the needs of our most successful exporters. We also advocated for policies to enhance foreign direct investment, and for better public understanding of the benefits of FDI – both inward and outbound – for competitiveness, exports and jobs.

An especially important issue is the role of state-owned enterprises in the global economy. Responding to calls from USCIB members, senior U.S. officials in 2011 pressed governments in the Asia-Pacific region and elsewhere to develop multilateral rules to discipline state-owned or state-championed enterprises, which are often favored by their home governments and increasingly compete against U.S. firms in third countries. We have successfully placed the issue on the agenda of the Trans-Pacific Partnership trade talks, and are encouraging the OECD to develop standards of “competitive neutrality” for governments to assure level playing fields between public – and private – sector firms.

USCIB is working to drive enhanced understanding among policy makers, and the public, of the value of American companies’ participation in global supply chains. Integrated worldwide production, investment and sales support an increasing number of jobs in the United States, as well as growth among smaller businesses that sell to larger multinationals. We plan to commission new research into the benefits of this integrated system in 2012 and beyond.

Outreach to the G20

G20 governments continue to struggle with threats to renewed growth as well as backsliding on earlier pledges to keep markets open. USCIB and each part of our global network played an important role in establishing more effective business input to the evolving G20 process. Just ahead of the October 2011 Cannes Summit, the International Chamber of Commerce (ICC) helped organize a successful G20 business event attended by USCIB Chairman Harold McGraw III, French President Nicholas Sarkozy and other G20 leaders. Meanwhile, the International Organization of Employers and BIAC (the Business & Industry Advisory Committee to the OECD) held official consultations with G20 labor ministers throughout the year to promote pro-growth, employment-generating policies to address the global jobs crisis.

Securing FTAs’ Passage

We worked with an array of companies and business groups to lobby for passage of long-delayed free trade agreements with Colombia, Korea and Panama. “These agreements will strengthen U.S. competitiveness by opening up three important trading partners for more U.S. exports, supporting new jobs at home,” said USCIB President and CEO Peter Robinson. “We hope they signal the beginning of a more ambitious trade and investment agenda to grow our economy.”

Foreign Trade Zones

Following outreach to the Commerce Department and the Treasury, USCIB won reversal of proposed changes to the rules governing U.S. foreign trade zones. The changes, which would have automatically applied U.S. anti-dumping and countervailing duties on imports processed through foreign trade zones, were criticized by business for undercutting the Obama administration’s National Export Initiative and costing American jobs.

Related USCIB Policy Committees:

Banking

China

Competition

Customs & Trade Facilitation