USCIB Reports on Public Hearing on Digital Services Tax

USCIB submitted comments on August 20 to the Section 301 Committee on the Investigation of France’s Digital Services Tax (DST).  According to USCIB’s taxation and trade policy experts Carol Doran Klein and Eva Hampl, USCIB believes that France’s DST is actionable under Section 301 because it is unreasonable and discriminates against U.S. companies.

USCIB’s comments note that the DST is also inconsistent with France’s obligations under the World Trade Organization (WTO), the U.S.-France Income Tax Treaty, and the Convention of Establishment between the United States and France. USCIB urges USTR to engage toward a negotiated outcome, including through multilateral channels, such as the Organization for Economic Cooperation and Development (OECD) and the WTO.

The Section 301 Committee, chaired by USTR, held a public hearing on Monday. According to Klein and Hampl who attended the hearing, all of the witnesses expressed great support for the work being done at the OECD and the Inclusive Framework process, noting that unilateral measures will undermine the OECD process and make it more difficult to reach agreement. USCIB has been actively engaged at the OECD on this issue, providing business input to governments, to help guide them to a workable multilateral solution.

USCIB Unveils Nationwide Incoterms® 2020 Seminars

New York, August 13, 2019 – With the International Chamber of Commerce (ICC) set to publish the latest update is to its essential Incoterms® rules for cross-border trade, its American national committee, the United States Council for International Business (USCIB), has announced plans for a nationwide series of seminars to train users in Incoterms® 2020.

Facilitating trillions of dollars in global trade each year, the “international commercial terms,” or Incoterms® rules, are a commonly accepted set of definitions and rules governing commercial trade activity. Updated approximately every ten years, the latest Incoterms® 2020 revision will be released worldwide next month.

USCIB’s training seminars will be led by renowned Incoterms® expert Frank Reynolds, CEO of International Projects Inc., who represented the United States in the ICC working group that drafted the 2020 revision.

“As America’s foremost Incoterms® authority, Frank Reynolds is uniquely qualified to explain these rules as they apply to U.S. trade practice,” said USCIB President and CEO Peter Robinson. “Frank brings over 50 years of hands-on practical expertise to ICC’s Incoterms® 2020 revision, and he has provided essential instruction to users on several previous revisions.”

Visit www.incoterms-for-americans.com for the full list of upcoming U.S. Incoterms® 2020 training seminars, and to register. To pre-order digital or print copies of the Incoterms® 2020 rules, visit the USCIB International Business Bookstore. ICC’s official worldwide launch of Incoterms® 2020 is set for mid-September.

USCIB has established a central information page on its website for all the latest developments surrounding the introduction of Incoterms® 2020. Go to uscib.org/about-incoterms-2020 for more information.

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, generating $5 trillion in annual revenues and employing over 11 million people worldwide. As the U.S. affiliate of several leading international business organizations, including ICC, USCIB provides business views to policy makers and regulatory authorities worldwide, and works to facilitate international trade and investment. More information is available at www.uscib.org.

Contact:
Jonathan Huneke, USCIB
jhuneke@uscib.org, +1 212.703.5043

USCIB Backs Coalition Response to Trump’s Call for More Tariffs on Chinese Goods

USCIB supported a Tariffs Hurt the Heartland coalition statement, responding to President Trump‘s announcement to impose a ten percent tariff on an additional $300 billion in Chinese goods. Tariffs Hurt the Heartland is a nationwide campaign against tariffs supported by over 150 of America’s largest trade organizations representing retail, tech, manufacturing and agriculture.

The statement noted: “The administration is doubling down on a failing strategy. Nobody wins in a trade war, and raising tariffs further on American businesses and consumers will only result in slower economic growth, more farm bankruptcies, fewer jobs and higher prices. These new tariffs will target the products American families buy every day, ranging from shoes and apparel to toys and electronics.”

The statement also emphasized that “it’s time for the administration to come up with a real strategy, put a stop to harmful tariffs and finally deliver the trade deal Americans were promised.”

USCIB had previously supported the coalition during a Fly-In campaign against tariffs, combining the efforts of Farmers for Free Trade and Americans for Free Trade, of which USCIB is a member, and also did a submission and testimony on the 300 billion dollars on tariffs.

Robinson Talks Policy With Senior State Department Leaders

USCIB’s Peter Robinson and Rob Mulligan meet with State Department’s Acting Assistant Secretary for Oceans, Environment and Science Ambassador Marcia Bernicat

USCIB President and CEO Peter Robinson had three successful senior-level meetings at the U.S. Department of State this week. On August 5, Robinson and USCIB VP Shaun Donnelly met Ambassador Kevin Moley, who serves as assistant secretary for International Organization (IO) Affairs for a tour d ’horizon of shared interests across a wide range of UN and other international organizations. IO Deputy Assistant Secretary Nerissa Cook joined the meeting. Much of the meeting focused on the shared objective of USCIB and the U.S. government of ensuring maximum access to and participation in international organizations for American and international business.

On August 6, Robinson, accompanied by Donnelly and USCIB SVP for Policy and Government Affairs Rob Mulligan, followed up with a wide-ranging meeting with the new Undersecretary for Economic Growth, Energy, and the Environment Keith Krach, along with his new leadership team in the Undersecretary’s office. Finally, the three met with Acting Assistant Secretary for Oceans and International Environmental and Scientific Affairs (OES) Ambassador Marcia Bernicat to discuss climate change and other important environmental issues.

“I was very fortunate, especially in early August, to get three very high-level meetings at the State Department within twenty-four hours,” Robinson said. “Each meeting was uniquely useful for USCIB and our member companies. With Ambassador Moley and his leadership team in the IO Bureau, we were able to compare notes on a range of shared interests, many of them related for access for American and global business to important international organizations. From Sustainable Development Goals (SDGs) in multiple UN bodies, to global health at the WHO, to UN climate and environmental negotiations, the private sector has a vital role to play. We are very grateful for the strong support the U.S. Government and Ambassador Moley and his team have provided us at USCIB. Although our USCIB team and member companies have worked closely with Ambassador Bernicat over her year on the job in OES, this my first chance to meet her personally.  We had a good, candid exchange on the challenge confronting the U.S. Government, American business, and the world in the climate and environmental areas. We will be working very closely with her going forward on a range of important issues.

“I especially appreciate all the time new Undersecretary Krach and his ‘E office’ leadership team spent with us today. We touched on a lot of important areas for cooperation going forward, from trade and technology to economic security and international organizations, including the OECD. Undersecretary Krach brings a very impressive private sector background to his new role as the senior economic policy official at the State Department. I assured him that USCIB stands ready to assist him and his team on any and all issues.”

Staff Contacts:

VP, Investment & Financial Services Shaun Donnelly (202.682.1221)

VP, Strategic International Engagement, Energy & Environment Norine Kennedy (212.703.5052)

USCIB Joins Congressional Lobby Days to Push for USMCA

USCIB joined the effort of the USMCA Coalition in its most recent Congressional Lobby Days just ahead of August recess, which reached more than 100 House offices. USCIB Senior Director for Trade, Investment and Financial Services Eva Hampl joined a group which met exclusively with House Democratic offices July 24-25. According to Hampl, representatives noted that they understood the importance of USMCA for the economic future of the U.S.

The Coalition referenced the July 23 letter signed by over 600 business associations across the country in pushing for urgent Congressional approval of USMCA.

There was a keen interest in the USMCA working group of House Democrats, which was established last month by House Speaker Nancy Pelosi to address some Democrats’ lingering concerns about issues in the agreement, specifically on labor, environment, enforcement and pharmaceutical pricing. While there were varying views on the substance of those discussions, there was general approval of the process. Many are looking to Pelosi for next steps. U.S. Trade Representative Robert Lighthizer and his team continue to meet with members of the working group. Discussions have been described as productive, and the Coalition has urged all parties to continue this important work during the August recess. The Senate remains in session this week.

“The Coalition is emphasizing the urgent need for action to move the agreement through Congress,” said Hampl. Hampl also noted that approval will depend on a collaborative approach.

The Senate Finance Committee is holding a hearing on USMCA today (July 30) and is featuring auto industry, agribusiness, transportation, dairy, and small business representatives, as well as a witness focusing on labor policy. For a list of witnesses please click here.

Taxation

Trends and Challenges Facing U.S. Business:

  • Multiple sets of inconsistent rules that drive up costs and result in double taxation
  • The mounting political pressure to move towards changing the taxation of the digitalized economy
  • Efforts to unfairly increase the tax burden on companies

USCIB’s Response:

  • Engage with the OECD on the development of international taxation principles
  • Proactively shape the development of the OECD’s guidance on the taxation of the digitalized economy by demonstrating to policymakers that unilateral action can result in double taxation, decreased trade, and reduced global growth
  • Actively monitor and contribute to the work of the UN Committee of Tax Experts to ensure its alignment with the work of the OECD Tax Committee and inform policymakers of their actions’ impact on investment
  • Support enactment of foreign tax simplification provisions in the IRC that would significantly reduce the burden of complexity for U.S. companies and enhance their international competitiveness
  • Host an annual conference in Washington, DC that provides a unique opportunity for the U.S. business community to interact with key representatives from the OECD Centre for Tax Policy and Administration (“CTPA”).

Magnifying Your Voice with USCIB:

  • USCIB is the only U.S. business association formally affiliated with the world’s three largest business organizations where we work with business leaders across the globe to extend our reach to influence policymakers in key international markets to American business
  • Build consensus with like-minded industry peers and participate in off-the-record briefings with policymakers both home and abroad.

More Recent Accomplishments

News Stories

USCIB Reports on Public Hearing on Digital Services Tax (8/20/2019) - USCIB submitted comments on August 20 to the Section 301 Committee on the Investigation of France’s Digital Services Tax (DST). According
USCIB Objects to Implementation of Digital Service Taxes by France (7/17/2019) - Responding to the recent announcement by France to implement a digital service taxes (DST), the United States Council for International

Read More

Chair

Bill Sample
Tax Policy Advisor
Microsoft Corporation

Vice Chairs

Timothy M. McDonald
Vice President, Finance & Accounting, Global Taxes
The Procter & Gamble Company

Will Morris
Deputy Global Tax Policy Leader
PwC

Louise Weingrod
Vice President, Global Taxation
Johnson & Johnson

Staff

Carol Doran Klein
Vice President and International Tax Counsel
202-682-7376 or cdklein@uscib.org

Erin Breitenbucher
Senior Policy & Program Associate and Office Manager, Washington
202-682-7465 or ebreitenbucher@uscib.org

Subcommittees

BIAC/ICC Subcommittee

Inbound Investment Subcommittee

Legislative and Administrative Developments Subcommittee

Tax Treaties Subcommittee

Transfer Pricing Subcommittee

Working Groups

Working Group on Consumption Taxes

Working Group on the Digital Economy

Working Group on Environment and Energy Taxes

Working Group on Financial Services Issues

Working Group on Permanent Establishment Issues

 

USCIB Partners With Deloitte, IOE to Launch Report on Scaling Investment for Sustainable Development

Patricia Buckley of Deloitte explained the report’s findings.

While global leaders meet in New York this week for the annual United Nations High-Level Political Forum (HLPF), USCIB partnered with Deloitte and the International Organization of Employers to launch a new study that shows the critical role the private sector will play in meeting Sustainable Development Goal (SDG) 8, which calls for promoting “sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all.”  According to some experts, the success of the entire SDG agenda depends to a large extent on achieving SDG 8.

The event was attended by corporate leaders from Fortune 500 companies, small business company executives, top UN officials, the heads of USCIB and IOE to map out the path to increase private sector investment in SDG 8 targets.The report Reaching SDG8: Challenges, Opportunities and Risks provides detailed data analysis on current progress towards meeting the targets of this goal.

USCIB President and CEO Peter Robinson launched the discussions. “There is an urgent need to develop new and inclusive partnership models that engage business and other non-state actors as equal partners with government,” said Robinson. “This model will embrace innovation, mobilize resources and expertise, and create shared accountability and value.”

According to the report, “the findings are discouraging, as the rate of global progress has, so far, not kept pace with the ambitions of the 2030 Agenda. Very little success has been achieved on […] increasing employment opportunities, especially for the young workforce; reducing informal employment, labor market inequality, and gender discrimination; improving resource efficiency in consumption; promoting safe and secure working environments; and improving access to financial services.”

IOE President Erol Kiresepi, who attended the launch event, also provided his insight in a recent blog post, in which he warns that the global community has just over a decade to ratchet up action or run the risk of failing to achieve this ambitious development agenda with devastating consequences. “To bridge the gap between the aspirational and actions on the ground, employer and business member organisations can play a pivotal role,” writes Kiresepi. “Employer organizations worldwide have long and deep experience in translating development agendas into corporate strategies and frameworks.”

In discussing the results of the report, Patricia Buckley, managing director for economics at Deloitte U.S., highlighted “how little progress has been made on most of SDG 8 targets – targets which called for a variety of improvement ranging from increasing skills and reducing informal employment to improving resource efficiency and expanding access to financial services for all.”

USCIB Helps Celebrate ILO Centennial, Business Role in Sustainable Development

Ringing the closing bell at Nasdaq. L-R: Mamadou Diallo, deputy secretary general, International Trade Union Confederation; Moussa Oumarou, deputy director general, ILO; USCIB President and CEO Peter Robinson, IOE VP for North America. USCIB Vice President Gabriella Herzog is immediately to the right of Robinson.

As leaders assembled in New York for the United Nations’ annual High-Level Political Forum (HLPF) on Sustainable Development, USCIB and its global network were on the scene, making the case for inclusive multilateralism and celebrating the hundredth anniversary of a key pillar of global cooperation, the International Labor Organization.

USCIB President and CEO Peter Robinson helped ILO ring the closing bell at the Nasdaq stock exchange on July 11, joined by officials from the ILO, the International Organization of Employers (IOE) and the International Trade Union Confederation (ITUC).

“It was an honor to help celebrate the ILO’s centennial in such auspicious surroundings, and in a tripartite way,” said Robinson, who serves as the IOE’s regional vice president for North America. “Here’s to another hundred years of growth, opportunity and success for workers, employers and the societies they continue to help build.”

USCIB’s Peter Robinson speaks at the UN High-Level Political Forum.

Robinson also took part in the first week of UN meetings around the HLPF, with many more planned for this week as well. He appeared alongside IOE Deputy Secretary General Matthias Thorns at a panel discussion on “Empowering People and Ensuring Inclusiveness and Equality.”

Robinson focused his remarks at the UN to emphasize three key elements that will provide an enabling environment allowing business to contribute the most:

  1. Improved governance and rule of law:“Some of the areas of the world in most need of business infusion are ones with big enough governance gaps that business has little incentive to invest; and trying to get business to shoulder the responsibilities that are primarily governmental in nature will be a further disincentive.”
  2. “Inclusive Multilateralism”:“Intergovernmental organizations must ensure that all voices are heard, and in particular must ensure that all business sectors have a seat at the table and prevent the arbitrary exclusion of interests—everyone has a role to play in solving societal challenges, and some of those sectors that many of you in the room might be most critical of, are in fact developing new and innovative approaches to furthering SDGs such as those related to health and climate”
  3. Governments need to facilitate public/private partnerships:“Since many institutions are not yet adequately structured or resourced to support the needed scale of working toward the SDGs, there is an urgent need to develop new and inclusive partnership models that engage business and other non-state actors as equal partners with government. This model will embrace innovation, mobilize resources and expertise, and create shared accountability and value.”

 

USCIB Washington Update: May – June, 2019

During the months of May and June 2019, USCIB Staff met with Angela Ellard, House Ways & Means Minority Chief Trade Counsel, Christa Brzozwski, DHS, Nick Gardner, US Dairy Export Council, and Martin Kreienbaum, German Federal Ministry of Finance, issued recommendations on the WTO e-Commerce negotiations, hosted the 14th Annual OECD International Tax Conference, and much more. Below are summaries of these and other highlights from the activities of USCIB in Washington, D.C. over the last three months. If you have any questions or comments, or want more information on a specific topic, please contact any of the staff members listed at the end of this brief.

Table of Contents:

  1. Trade and Investment – Opening Global Markets for Trade and Investment
  1. ICT Policy – Promoting Sound Policies for New Technologies
  1. Tax – Advancing Tax Policies that Promote U.S. Competitiveness
  1. Customs and Trade Facilitation – Reducing Barriers and Costs from Customs and Border Control Practices
  1. Anti-Illicit Trade – Promoting Strong International AIT Leadership and Advocating a Comprehensive and Multi-Disciplinary Approach to AIT
  1. Food and Agriculture – Promoting an Open and Efficient Global Food System by Providing Industry Expertise
  1. China – Supporting Policies and Relationships that Enhance U.S.-China Business

  1. Competition – Creating Global Legal Practices for an Open and Competitive Business Environment
  1. Membership
  2. Upcoming Events
  3. Staff List

 Trade and Investment – Opening Global Markets for Trade and Investment 

Angela Ellard, House Ways & Means, Briefs USCIB Trade Committee: At the June 20 meeting of the USCIB Trade and Investment Committee members received a briefing from Angela Ellard, Minority Chief Trade Counsel, House Ways & Means Committee. She shared her immediate impressions of Ambassador Lighthizer’s hearing the day prior, indicated that USMCA is a top priority and responded to questions on a range of other trade issues. This was followed by a briefing from Nick Ashton Hart of the Digital Trade Network, who called into the meeting directly after the conclusion of the WTO E-Commerce negotiations in Geneva. The most recent round of negotiations took place from June 18-20. Nick was able to provide an in depth, off-the-record briefing on the negotiations as the only business representative present in the room for the negotiations.

USCIB Statement on WTO e-Commerce Negotiations: In early June, USCIB issued Recommendations on the WTO e-Commerce negotiations, reflecting member priorities and goals for the negotiations, which had their first round in May. At the December 2017 WTO ministerial in Buenos Aires, 71 countries agreed to begin discussing new global rules to facilitate the expansion of the digital economy. The negotiations were formally launched in January with a joint statement by 76 countries, including the United States, in Davos at the World Economic Forum. As of the most recent round, the joint statement initiative now includes 78 WTO members, representing 90% of global trade. USCIB encouraged negotiators to focus on trade facilitation, services, digital trade, and transparency and trust. In addition to this paper, USCIB is actively engaging in the negotiations in Geneva via various efforts, including the Digital Trade Network and the International Chamber of Commerce.

Robinson on the Road (1): OECD and “Business at OECD” Annual High-Level Sessions: USCIB President/CEO Peter Robinson was one of the leaders of the Business at OECD (BIAC) delegation participating in the OECD’s annual Ministerial session in Paris May 22-23. Peter also attended the OECD’s pre-Ministerial Forum and was able to have a series of bilateral meetings with senior government representatives from the U.S. and other OECD countries, senior OECD officials including Secretary General Gurria and the newly-appointed Deputy Secretary General from the U.S., Jeffrey Schlagenhauf. Peter also attended, along with Business at OECD Vice Chair Rick Johnston (Citi), the annual BIAC General Assembly of its 30 national committees members and the 5th annual B20/G20/BIAC/OECD dialogue session ahead of the June G20 Osaka Summit, an opportunity for business to share recommendations to the G20 leaders and Sherpas.

Robinson on the Road (2): ICC High-Level Meetings: The following week, May 28-29, in Paris Peter Robinson shifted into International Chamber of Commerce (ICC) mode, representing USCIB at the ICC’s “Permanent Heads” meeting (i.e. Peter’s National Committee head counterparts from around ICC’s broad global network) and the ICC “World Council”. A special “Knowledge Solutions” session was held, at which ICC Secretary General John Denton and his leadership team laid out their vision, priorities, and structure for the organization, and which also included leadership representatives from some of ICC’s policy Commissions. A special ICC Centenary Summit was held to mark ICC’s 100th year, which was addressed by senior governmental and intergovernmental officials and at which previous ICC Chairmen and Secretaries-General were present.

Robinson on the Road (3): Geneva and London – ILO Leadership and Partnership with ICC-UK: after a short break at home, Peter was off to Geneva to participate, June 17-18, along with USCIB Vice President Gabriella Rigg Herzog, Senior Counsels Ronnie Goldberg and Tom Mackall, and several USCIB member company representatives in events at and around the International Labor Organization’s (ILO) ten-day centennial International Labor Conference. While in Geneva, Peter attended the Presidents Forum of the International Organization of Employers (IOE) and was a featured panelist, along with ILO DG Guy Ryder, WTO DG Roberto Azevedo, World Bank SVP Mahmoud Mohieldin, OECD Chief of Staff Gabriela Ramos, ITUC DG Sharan Burrow and others at an ILO event on “Multilateralism for an Equitable Future of Work.” Peter was also able to have a series of very useful informal bi-laterals with key government and international organization leaders. Peter then stopped in London on his way home, joining a panel at ICC-UK’s annual general meeting, presenting USCIB views on the future of the WTO, the multilateral trading system, and the just-launched WTO e-commerce negotiations. Peter also was invited to join and speak to ICC-UK’s Board meeting about current USCIB/ICC-USA priorities.

Hampl Discusses China and USMCA at Investor Conference: USCIB Senior Director, Investment, Trade and Financial Services, Eva Hampl, spoke on a panel entitled Trade & Tariffs – Today & Tomorrow at the annual MLP & Energy Infrastructure Conference (MEIC 2019) in Las Vegas, May 14-16. The panel, which also included Colin Bird from the Embassy of Canada and Karen Antebi from the Embassy of Mexico, provided a macro perspective on current trade issues. The discussion focused on various issues surrounding China, the importance of the U.S. trade relationship with Mexico and Canada, including the U.S. Mexico Canada Trade Agreement (USMCA), and other trade issues.

Donnelly Meets with Swiss Government Official: USCIB Vice President Shaun Donnelly met May 14 with visiting senior Swiss Government official, Phillippe Nell, Director for the Americas in the State Secretariat for Economic Affairs (“SECO”), to exchange views on a range of bilateral and global trade and economic issues, including WTO reform, China, new U.S. national security review procedures for incoming Foreign Direct Investment (FDI), and possibilities for a U.S. – Switzerland trade agreement.

USCIB Board of Directors Focuses on Trade Policy Developments: USCIB’s Board of Directors at its Spring meeting in New York City on May 15, had a wide-ranging discussion of key trade issues. The Board focused on issues including “section 232” national security reviews of imported steel, aluminum, and automobiles; prospects for congressional approval of the U.S./Mexico/Canada Agreement (USMCA); U.S.-China trade tensions; as well as WTO priorities, negotiation of an e-commerce agreement and institutional reform of the WTO. The Board endorsed the leadership role and the strong policy positions USCIB’s Trade and Investment Committee have been articulating.

USCIB Leading Business Voice on UNCITRAL Negotiations on Investment Agreement “Reform”: USCIB staff members have been meeting regularly with U.S. government investment negotiators and lawyers participating in the negotiations under the auspices of the UN’s Commission on International Trade Law (UNCITRAL) Working Group 3. Those discussions of possible revisions to the vast network of 3000+ Bilateral Investment Treaties (“BITs”) as well as investment chapters in Free Trade Agreements (FTAs) around the world are zeroing in on key enforcement details, the Investor-State Dispute Settlement “ISDS” provisions. On April 29, USCIB staff met with the key US negotiators from the State Department and the office of the U.S. Trade Representative to review developments. On May 23, USCIB Vice President Shaun Donnelly was a rare business participant amidst a sea of lawyers in the discussion of the UNCITRAL negotiations at the open public meeting of the State Department’s Advisory Committee on Private International Law. USCIB is continuing to urge the U.S. Government and other participants to maintain strong substantive investment protections as well as enforcement provisions.

ICT Policy – Promoting Sound Policies for New Technologies

 USCIB Members Shape Launch of OECD Review of 2013 Privacy Guidelines, Advance Work on Security, Data Governance, & Communications Issues: Business should assume responsibility for the privacy of data through its life cycle by conducting rigorous and documented risk assessments and mitigation, ensuring transparency through both internal and external audits, continually monitoring and testing to prevent gaps, and generally going above and beyond what is required by law. This was an important message delivered USCIB members who participated in a special OECD workshop on May 6 aimed at a advancing the mandated five-year review of the 2013 OECD Guidelines Governing the Protection of Privacy and Transborder Flows of Personal Data (the “Privacy Guidelines”). The May 6-7 meetings of the Committee on Digital Economy Policy (CDEP) Working Party Security and Privacy in the Digital Economy (SPDE), also moved forward work focused on revising an OECD Recommendation on the Protection of Children Online, developing principles for access to and sharing of data, advancing the Global Forum for Digital Security for Prosperity, and adopting the draft Recommendation on Artificial Intelligence. AT&T provided a critical review of the OECD’s work on bundled communication price baskets, which was considered at the May 7 meeting of the Working Party on Communication Infrastructures and Services Policy (CISP).

USCIB Convenes Meeting with Co-Director of the UN High Level Panel on Digital Cooperation Secretariat: USCIB convened a private, luncheon discussion on June 13 with Ambassador Amandeep Gill, Co-Director of the UN High-Level Panel on Digital Cooperation (HLPDC) Secretariat. The meeting was especially timely since the HLPDC report, The Age of Digital Interdependence, was hot off the press having been issued on June 10. USCIB members reiterated key points in our November 2018 and January 2019 submissions, urging a “holistic approach” to digital policy that went beyond use of digital technologies by the information, communications, and technology (ICT) sector, and considered how ICTs can serve as enablers for innovations across all sectors, such as in healthcare, education, finance, and energy, to name a few. Members cautioned against creating duplicative Internet governance mechanisms, urged increased resources to support the Internet Governance Forum (IGF), and encouraged the HLPDC to integrate the OECD’s work on Artificial Intelligence and digital transformation as well as draw upon initiatives of standards organizations, such as the IEEE.

USCIB Engages with U.S. Department of Justice and State about International Initiatives Focused on Cybercrime and Cybersecurity: The June 13 meeting of the ICT Policy Committee featured discussions with Department of Justice officials about efforts currently underway to negotiate an additional protocol to the so-called Budapest Convention on Cybercrime. The changes are aimed at bringing the Convention up to date with developments in the digital economy, improve on the current Mutual Legal Assistance Treaty (MLAT) approach, and generally expand international cooperation to pursue various computer crimes. An important over-arching theme was that cybercrime (e.g. fraud and other crimes involving computers) should not be conflated with cybersecurity, the latter of which centers on the protection of networks. Complementing the cybercrime discussion, USCIB members explored with key State Department officials the latest developments in the United Nations Group of Governmental Experts on Developments in the Field of Information and Telecommunications (GGE), which enjoys U.S. support. The GGE is structured to convene regular institutional dialogue on cybersecurity issues as well as bilateral and regional discussions that feed into the UN General Assembly. In the run-up to the 73rd session of the UN General Assembly, however, the Russian Government put forward a competing proposal for a cybersecurity-focused Open-Ended Working Group (OEWG). The U.S. Government abstained on grounds that the OEWG’s work likely will be strongly influenced by Russia’s support for mechanisms to censor online content. Nevertheless, the OEWG kicked off an organization meeting on June 3 and likely will proceed ahead of the GGE process. The State Department speaker informed USCIB members that stakeholders accredited by ECOSOC may participate in the OEWG as observers; the GGE is a multilateral process involving governments only.

USCIB Members Advocate for Timely Development of a GDPR-Compliant Uniform Access Model (UAM) for Nonpublic Registration Data at ICANN 65: ICANN 65’s policy-focused meeting wrapped up on June 27 in Marrakech, Morocco. Barbara Wanner, USCIB Vice President for ICT Policy, and members from AT&T, Amazon, BT, Facebook, Google, Microsoft, The Walt Disney Company, and VeriSign, joined participants from the multi-stakeholder community to address key policy issues in management of the domain name system. For the past year, USCIB members have been contributing actively to an Expedited Policy Development Process (EPDP) to develop a formal policy to ensure that ICANN and the industry of more than 1,000 generic top-level domain (gTLD) registries and registrars meet existing ICANN contractual requirements concerning the collection of and access to registration data as well as comply with the EU General Data Protection Regulation (GDPR). The EPDP’s Phase 1 Final Report was issued earlier this year, which contained 29 policy recommendations. USCIB members who participate in the ICANN’s Business and Intellectual Property Constituencies used the Marrakech meeting to underscore the importance of moving expeditiously in “Phase 2.” This phase will focus on designing a Uniform Access Model (UAM) to enable third-party access to non-public WHOIS data for legitimate law enforcement, consumer protection, brand management, and intellectual property (IP) protection purposes. Wanner serves on the Business Constituency’s Executive Committee.

Tax – Advancing Tax Policies that Promote U.S. Competitiveness

USCIB Holds Successful Tax Conference with the OECD and Business at OECD: The fourteenth annual OECD/USCIB Tax Conference took place on June 3rd and 4th at the Four Seasons in Washington, DC. The conference focused on the taxation of the digitalizing economy and provided the first opportunity for business and governments to discuss the OECD’s work program. The conference also considered treaty issues and the tax implications of Brexit. Tax Committee Chair, Bill Sample, and Vice Chairs, Tim McDonald, Louise Weingrod, and Will Morris represented business views at the conference. Economist Ngozi Okonjo-Iweala’s keynote remarks focused on ways to improve the tax capacity of emerging markets, which are expected to receive a growing share of global private-sector investment in the years ahead

Other panelists and speakers at this year’s conference included:

  • Pascal Saint-Amans, director of the OECD Center for Tax Policy & Administration
  • Martin Kreienbaum, director general for international taxation, German Ministry of Finance
  • Chip Harter, deputy assistant secretary for international tax affairs, U.S. Treasury
  • Dr. Ngozi Okonjo-Iweala, an economist and former finance minister of Nigeria
  • Doug O’Donnell, commissioner of the Large Business and International Division, IRS
  • Mike Williams, director of business and international tax, HM Treasury (UK).

USCIB Tax Committee Meets in Conjunction with OECD/USCIB Tax Conference: The USCIB Tax Committee met with Martin Kreienbaum, which afforded committee members a deep dive on some of the issues discussed at the Tax Conference. The committee also considered ways to provide input into the OECD work program and recent guidance on Tax Cuts and Jobs Act.

Carol Doran Klein Represents Business Views at the Pacific Rim Tax Conference in Palo Alto: USCIB’s tax expert Carol Doran Klein presented at the ninth annual Pacific Rim Tax Conference on Digital Economy Tax Issues, held May 9-10 in California. Doran Klein’s panel covered the ongoing work on taxation of the digitalizing economy at the Organization for Economic Cooperation (OECD) and the United Nations. The panel provided an overview of the background including Action 1 of the OECD’s Base-Erosion and Profit Shifting (BEPS) project, digital services taxes and other unilateral interim measures, and the different options under consideration at the OECD.

USCIB Submits Comments to Regulators: USCIB submitted comments on proposed regulations on Foreign Derived Intangible Income and on draft UN transfer pricing guidance. The comments can be found under the recent accomplishments section of our web page.

Customs and Trade Facilitation – Reducing Barriers and Costs from Customs and Border Control Practices

USCIB and U.S. Chamber Hold WCO E-Commerce Industry Day Meeting: On May 21, 2019, USCIB members along with many U.S. government agency partners (CBP, DHS, USTR, State, Treasury), and non-member associations working on customs issues (IRU, US Fashion Industry Association, American Association of Importers and Exporters), came together to discuss the WCO E-Commerce Framework of Standards. The meeting was led by Christa Brzozwski of DHS, and Customs and Trade Facilitation Committee Chair, Jerry Cook of Hanes brand. The goal of the meeting was to ensure that the USG have enough “industry” support for their positions going into the June Policy Commission Meeting and it was felt that this goal was achieved.

Anti-Illicit Trade – Promoting Strong International AIT Leadership and Advocating a Comprehensive and Multi-Disciplinary Approach to AIT

USCIB Anti-Illicit Trade Committee Talks FTZ Legislation: On June 10, 2019, USCIB hosted Paul Massaro, Policy Advisor for the Commission on Security and Cooperation in Europe (U.S. Helsinki Commission) and Gary Kalman, Executive Director for the Financial Accountability and Corporate Transparency (FACT) Coalition to discuss future FTZ legislation and the Corporate Transparency Act. Massaro explained how the Helsinki Commission has engaged and become a part of the US task force on illicit trade while Kalman elaborated on the international development of the FACT coalition within the illicit finance background. At the meeting, Megan Giblin and David Luna, Committee Chair, provided updates on AITC partnerships including possible FTZ workshop, meetings with State and APEC, as well as beginning discussions with ICC BASCAP.

Food and Agriculture – Promoting an Open and Efficient Global Food System by Providing Industry Expertise

USCIB Holds Joint Food and Agriculture and Health Care Committee Meeting: On June 5, 2019, Nick Gardner, Director, Codex and International Regulatory Affairs at the US Dairy Export Council, met with USCIB members to provide a detailed overview and insight into Codex Alimentarius and its involvement with food safety. Gardner emphasized the overarching issue with WHO and FAO jointly administering Codex, which poses several challenges, such as major trade implications and access to new markets/trade to existing markets. Additionally, at the meeting, Mike Michener discussed important upcoming events, including the ECOSOC High Level Political Forum (July 9-18) and the UN General Assembly (September, 17-30).

China – Supporting Policies and Relationships that Enhance U.S.-China Business

 USCIB Submits Comments on China Tariffs and Hampl Testifies: USCIB submitted comments on June 17 to the office of the United States Trade Representative (USTR) on the proposed modification to Section 301 regarding China’s policies and practices related to technology transfer, intellectual property and innovation. The submission expressed concern that proposed tariffs on essentially all Chinese imports will stifle the U.S. economy and will not achieve the Administration’s goal of changing China’s behavior. Eva Hampl, Senior Director for Investment, Trade and Financial Services testified on these issues before the Section 301 Committee on June 21 as part of a hearing spanning 7 days and with over 300 witnesses. USCIB also joined with the Tariffs Hurt the Heartland Coalition, alongside 661 other companies and association, to send a letter to President Trump on June 13 urging the administration to negotiate a strong deal with China that addresses longstanding structural issues, improves U.S. global competitiveness and eliminates tariffs.

Competition – Creating Global Legal Practices for an Open and Competitive Business Environment

USCIB Urges Reversal of 1-800 Contacts FTC Ruling: USCIB filed an amicus brief with regards to 1-800 Contacts, Inc. case to highlight the challenges American businesses would face under the recent Federal Trade Commission’s (FTC) decision’s approach to antitrust liability for trademark settlements, and explain the potential negative impacts the decision would have on businesses, consumers and competition if left to stand. Earlier this year, the FTC decided to impose antitrust liability against 1-800 Contacts, the largest online retailer of contact lenses in the U.S., on the basis that 1-800 Contacts’ settlements of trademark infringing lawsuits against at least fourteen competing online contact lens retailers restricted trade. Among other things, USCIB’s amicus argues that the Commission’s decision ignores the critical importance to business of intellectual property rights and its enforcement and would unfairly require the lawful exercise of such rights to a higher pro-competition standard.

Membership

Membership Meetings: The USCIB membership department and policy staff met with representatives from member companies Nissan North America, Expedia, Astellas, and American Express to develop our understanding of their policy priorities for the next year and beyond, and to see how USCIB can better serve their policy needs. In addition, the USCIB membership department and USCIB President and CEO Peter Robinson met with representatives from member companies AT&T and Intel Corporation.

New Members: USCIB has recently welcomed Palo Alto Networks as a new member.

Upcoming Events:

  • OECD Committee on Digital Economy Policy, Paris, France – July 1-2
  • UN High-Level Political Forum on Sustainable Development (HLPF), New York, NY – July 9-18
  • USCIB Customs and Trade Facilitation Committee Meeting, Washington, DC – July 10
  • USCIB Foundation-IOE-Deloitte SDG Summit, New York, NY – July 17
  • US Customs & Border Protection 2019 Trade Symposium, Chicago, Illinois – July 23-24
  • Internet Governance Forum USA (IGF-USA), Washington, DC – July 25
  • Meeting of APEC Electronic Commerce Steering Group and Data Privacy Subgroup, Puerto Varas, Chile – August 18-21
  • Preparing for the Future of Work: A USCIB Foundation Dialogue, Washington, DC – September 5
  • 11th Annual Engaging Business Forum on Business and Human Rights, Atlanta, Georgia – September 12-13
  • World Radiocommunication Conference (WRC), Sharm El Sheikh, Egypt – October 28-November 22
  • ICANN 66, Montreal, Canada – November 2-7
  • Meetings of the OECD Committee on Digital Economy Policy (CDEP) and its Working Parties, Paris France – November 18022
  • 14th Internet Governance Forum (IGF), Berlin, Germany – November 25-29

 

USCIB Policy and Program Staff

Rob Mulligan
Senior Vice President, Policy and Government Affairs
202-682-7375 or rmulligan@uscib.org

Erin Breitenbucher
Senior Policy and Program Associate and Office Manager, Washington
202-682-7465 or ebreitenbucher@uscib.org

Jonathan Huneke
Vice President, Communications and Public Affairs
212-703-5043 or jhuneke@uscib.org

Shaun Donnelly
Vice President, Investment and Financial Services
202-682-1221 or sdonnelly@uscib.org

Norine Kennedy
Vice President, Strategic International Engagement, Energy and Environment
212-703-5052 or nkennedy@uscib.org

Megan Giblin
Director, Customs and Trade Facilitation
202-371-9235 or mgiblin@uscib.org

Carol Doran Klein
Vice President and International Tax Counsel
202-682-7376 or cdklein@uscib.org

Ronnie Goldberg
Senior Counsel
212-703-5057 or rgoldberg@uscib.org

Mia Lauter
Policy and Program Associate, New York
212-703-5082 or mlauter@uscib.org

Daniella Goncalves
Assistant Policy and Program Manager, Corporate Responsibility and Labor Affairs
212-703-5083 or dgoncalves@uscib.org

Mike Michener
Vice President, Product Policy and Innovation
202-617-3159 or mmichener@uscib.org

Eva Hampl
Senior Director, Investment, Trade and Financial Services
202-682-0051 or ehampl@uscib.org

Chris Olsen
Policy and Program Associate, Washington
202-617-3156 or colsen@uscib.org

Gabriella Rigg Herzog
Vice President, Corporate Responsibility and Labor Affairs
212-703-5056 or gherzog@uscib.org

Kendall Thibeadeau
Policy and Program Associate, New York
212-703-5095 or kthibeadeau@uscib.org

Ashley Harrington
Policy and Program Associate, Washington
202-682-5861 or aharrington@uscib.org

Barbara Wanner
Vice President, ICT Policy
202-617-3155 or bwanner@uscib.org

Alison Hoiem
Senior Director, Member Services
202-682-1291 or ahoiem@uscib.org

Kira Yevtukhova
Communications Manager
202-617-3160 or kyevtukhova@uscib.org

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USCIB Helps Shape AI Recommendations at OECD

The OECD Committee on Digital Economy Policy (CDEP) met in Paris July 1-2 to discuss follow-on work on Artificial Intelligence (AI), which was anchored by the May 22 Council Recommendation on Artificial Intelligence, an instrument uniformly lauded by CDEP delegates and stakeholders. USCIB Vice President for ICT Policy Barbara Wanner was on the ground, alongside members from Amazon, IBM, Microsoft, Netflix and TMG Legal.

Experts from Facebook, Google, IBM and Microsoft actively shaped the development of the AI Recommendation as participants on a special AI Experts Group. Under the auspices of Business at OECD (BIAC), USCIB members again stepped up on June 1 to provide the business perspective on practical implementation of the AI Recommendation as well as the complementary AI Policy Observatory.

“While there were no concrete outputs from the two-day meeting, the discussions provided important feedback to the OECD Secretariat, which will revise and refine the AI implementation document and plans for the AI Policy Observatory for consideration at the November 18-22 meetings of the CDEP and its Working Parties,” said Wanner.

Other notable topics addressed during the two-day meeting included next steps for Going Digital Phase 2 project and the Going Digital Toolkit, a discussion of the Blockchain pillar, further work on online platforms, and a proposal to revise the mandate of the Working Party on Security and Privacy in the Digital Economy.