USCIB Interviews John Frank on Microsoft’s New Office in NY for UN Affairs

John Frank

USCIB member since 1996, Microsoft has recently established a New York office to liaise with the United Nations. Norine Kennedy, who leads USCIB work on strategic international engagement, energy and environment, conducted a (virtual) interview with the head of this new office—Vice President for UN Affairs John Frank. Kennedy welcomed Frank to NY and posed some questions about Microsoft’s strategic vision for an enhanced presence at the UN, and invited his perspective on what American innovation, engagement and sustainability leadership can bring to the international community.


Microsoft’s decision to establish a New York office to connect directly with the UN is unique among our members. Could you talk about the process that led to this decision?

Many of the big challenges facing society can only be addressed effectively through multi-stakeholder action. Whether it’s public health, environmental sustainability, cybersecurity, terrorist content online or the UN’s Sustainable Development Goals, we have found that multilateral cooperation is essential. And we need inclusive governance that brings in civil society and private sector organizations to collaborate on solutions. At Microsoft, we have taken active roles to encourage and support multi-stakeholder initiatives like the Paris Call for Trust and Security in Cyberspace and the Christchurch Call to eliminate terrorist and violent extremist content online.

As we have deepened our engagements on global and multi-stakeholder initiatives, we find ourselves interacting with the UN system and other multilateral institutions more deeply. The UN General Assembly High Level Week brings many people, including companies, to New York. But the work does not stop there. The people and processes that aim to solve these collective challenges continue after High Level Week concludes, so we decided we should be here all year long.

Establishing our representation office with people based in New York and Geneva is the next natural step for a company that values multilateralism and multi-stakeholder solutions to global challenges.

What do you see as the role of tech companies such as Microsoft in a post COVID-19 world?

The COVID-19 experience has greatly accelerated the adoption of technology across many organizations. Whether one uses Microsoft Teams, or Zoom, or another video conferencing solution, we have all moved our meetings and conferences online. Outside of the workplace, technology is helping us educate our children, engage with friends and family, and make our voices heard during the pandemic. In a post COVID-19 world, we expect some best practices will persist, allowing for more flexible workplaces, next generation classrooms, and other technology-enabled advances to improve how we work, communicate, and learn.

We believe this digital transformation will continue to accelerate. We see greater urgency to harness data science, especially for public health. Software, computers and data science are becoming core to every organization. Every company is becoming either a tech company, or a tech-enabled company. We will continue to see growth in the number of tech companies and the number of technology skilled workers.

COVID-19 has also sharpened the digital divide. As schooling moves online, students without affordable broadband access and laptops are at risk of being left behind. Telemedicine has seen great adoption and social benefits, but communities without broadband access cannot benefit. Billions of people around the world are still not connected. The pandemic has drawn into stark focus the need to narrow the digital divide between and within countries. And we need to enable institutions and individuals to develop the digital skills to flourish in a technology-enabled future.

Some technology companies have enjoyed great success but have not always earned the trust and respect of political leaders. It’s no surprise that our industry is facing greater calls for corporate responsibility and regulation in several jurisdictions globally. And so we have important work on both transformations – contributing to our customers’ digital transformations, and to new regulatory frameworks that will support innovation and greater corporate responsibility.

What is your vision for your team regarding UN engagement, particularly on over-arching UN-wide efforts to respond to COVID-19 and a sustainable and resilient recovery?

Across Microsoft, we have several engagements with the UN that are intended to help the UN amplify its efforts in a wide range of areas. Our representation office focuses on how we can help those initiatives be more impactful and help our Microsoft colleagues engage the many parts of the UN system in a way that best meets the UN’s needs.

Our initial focus will be on supporting and promoting cooperation with the UN to advance progress in six key areas: climate action; human rights; strong institutions; decent work and economic growth; quality education; and broadband availability and accessibility.

Our partnerships support the Secretary-General’s plan for a comprehensive UN response to COVID-19 to save lives, protect societies, and recover better. We will continue our projects that contribute to a sustainable and inclusive economic recovery.

Since March 2020, our senior leaders have been working with the leaders at WHO to develop big data solutions that will greatly increase the scientific capacity of WHO to address COVID-19 and future health challenges. This work has implications for all nations that are dealing with the effects of the pandemic.

We also focus on digital inclusion initiatives. Our colleagues have promoted innovative, lower-cost solutions to bring broadband access to rural Africa because getting the world online will help build sustainable and inclusive societies. Five years ago, I visited a demonstration project in Mawingu, Kenya, for a low-cost broadband solution using unused spectrum allocated to broadcast television. That technology is now proven, and there is a group of local companies ready to deploy scale solutions in Africa. Our team is focused on their last mile: how we can help those projects get financing so they can bring broadband to millions of people at affordable prices.

Microsoft colleagues have been working for years on education opportunities for refugees and internally displaced people. The Learning Passport began as a partnership among UNICEF, Microsoft and the University of Cambridge. The program was designed to provide education for internally displaced and refugee children through a digital remote learning platform. It has now undergone rapid expansion to help countries roll out their online curricula for children and youth whose schools were forced to close due to COVID-19. The platform will also provide key resources to teachers and educators who need to adapt to online learning quickly.

Protecting human rights remains essential across everything we do. We have an important partnership with the Office of the UN High Commissioner for Human Rights to support their work with a technology tool, Rights View, that enables them to monitor human rights developments around the world.

The vision for our UN Affairs team is to engage with the UN community, build relationships and learn, and help make Microsoft’s partnerships more impactful.

COVID-19 delays within UN processes on climate change and biodiversity notwithstanding, Microsoft has announced impressive leadership initiatives in the sustainability space.  Could you talk about those and the synergies you hope to see in bringing those into and partnering with the UN?

Around the time the US Administration announced its withdrawal from the Paris Climate Accord, our company leadership decided that we needed to do more directly not only to reduce, but to reverse our environmental impact. We have chosen four focus areas: carbon, water, biodiversity, and waste. We have set bold goals for ourselves, based on rigorous environmental standards and business planning. For example, we have pledged to be carbon negative on Scope 1, 2, and 3 emissions by 2030 and to achieve net zero carbon emissions for our Scope 1 and 2 emissions for the 75 years of the company’s existence by 2050.

Companies need to share and learn from each other how we to make progress towards these kinds of goals. The NetZero Coalition is a forum we helped form for this purpose. We want to share aspirations and operational experiences so that eventually, small, medium and large size organizations can learn how to implement programs that are economically sound, and ambitiously reduce carbon emissions.

The UN and its agencies have been on a similar journey, researching and learning more about how to tackle climate change collectively. With our engagements with the UN, we hope that we can expand the reach and amplify the learnings on how organizations, large and small, can move from aspiration to achieving measurable and ambitious operational goals.

Let’s switch gears to the digital economy. UN Secretary-General Antonio Guterres has issued a Digital Cooperation Roadmap. Through USCIB, Microsoft actively contributed to advocating for an Internet Governance architecture that would build upon the current Internet Governance Forum. The UN Roadmap also addresses connectivity, privacy protections and human rights, and cybersecurity. Overall, how would Microsoft like to see this Roadmap carried forward in the UN – recognizing that many member states still may lack a strong digital infrastructure?

The Roadmap for Digital Cooperation embraces a multi-stakeholder approach that Microsoft, USCIB and others have been advocating over a number of years. It is important for USCIB and our fellow members to remain engaged. We hope that the progress we made together to shape the vision for the eight areas for action can be advanced to make ambitious progress in implementation, engaging multi-stakeholder processes. The appointment of a UN Technology Envoy will be a welcome step.

Microsoft has embraced the opportunity to contribute to the Roundtable process this year, including as co-champion of the section on Digital Trust and Security. Our company had an opportunity to participate in important discussions to advance broader understanding of the strong linkage between digital trust and security, and how essential they are to protecting the digital environment that enables progress on the Sustainable Development Goals.

As you note in your question, many member states are still building their digital infrastructure and so we believe it is important to devote significant energy to helping them build their digital capacities.  Affordable broadband connectivity, guaranteeing human rights, and commitment to keeping the Internet free, open and secure, and building capacity for digital trust and security are important priorities.

And in all countries, there is important work to be done promoting inclusive economic recovery, addressing the digital divides with affordable broadband access, skilling workers for greater economic rewards, and remotely teaching students.

Microsoft has been an active contributor to the UN Open-Ended Working Group on Cybersecurity, a multi-stakeholder group. This has enabled business to provide critical technical expertise to security-related discussions. USCIB members are concerned about the efforts of Russia, China, and others to press for a binding UN cybersecurity treaty or other legal instrument. How can we leverage groups like the Open-Ended Working Group to build broader support for our view that a UN binding cybersecurity instrument risks doing more harm than good?

We can all benefit from the expanding number of nations that make cybersecurity a priority. Perhaps the clearest message from the OEWG process is that nations want to build their capacity, both to keep themselves more secure and to deepen their understanding of cybersecurity practices, norms and international protections.

Cybersecurity is also being addressed in other international fora. The Paris Call now has 78 nations as signatories (as well as nearly 1000 local government, civil society and private sector endorsers). We have all pledged to support nine widely accepted principles, and to work together to help elaborate and implement the principles. Siemens is leading a group of companies to improve supply chain security, called the Charter of Trust. Microsoft helped launch the Cybersecurity Tech Accord to collaborate on making products more secure over their lifetimes. At the OECD, a group has been working to elaborate how a “no hacking back” principle could be applied in practice. These represent just a fraction of the initiatives that have emerged in recent years to promote a safer cyberspace.

Most significantly, we need to make progress expanding the number of nations that can engage fully on cybersecurity practices and policy, and we need to work inclusively to build from principles that have already been agreed to more concrete norms and practices. And then, we can evaluate how to approach new legal instruments.

As you know, USCIB has worked with UN agencies on behalf of its members for decades and is conscious of the opportunities, even under the current circumstances, to support and advance the effectiveness of UN efforts by crowding in U.S. private sector innovation and hands-on engagement. As a valued member of USCIB, where would Microsoft like to see USCIB focus to pursue opportunities to co-create practical shared value with UN partners looking ahead towards rebuilding better and more sustainably?

We need USCIB’s leadership to help advance inclusive global governance innovations. USCIB members can help create new opportunities by sharing and learning from each other on how we can collectively address the big challenges, like strengthening our global capacity and cooperation for public health and pandemic response.

We are all experiencing together the COVID-19 pandemic and the breakdowns and gaps in our global economy that have prevented us from better containment and care. Governments will address these issues – including rethinking some critical supply chains – and private sector actors should be deeply engaged in contributing to the new solutions. Along with civil society, which plays an especially important role in global health, we can all engage to help build an improved system for global cooperation and national preparedness to better manage public health challenges.

Climate change can seem such an overwhelming challenge that it can be difficult to know where private sector actors should start. Across the full range of our economy, one can see innovations and experimentation that hold promise for reducing our climate impact. USCIB can be a valuable convener for how we can learn from each other and how we can strengthen the UN’s efforts through broader cooperation and commitment.

Finally, we should also devote time and effort together to share views and try and build consensus on how our global institutions should be reformed and strengthened. We seem to be at an inflection point where the weaknesses of our global governance systems have been highlighted, but the reforms have not been elaborated and agreed. The missions of many global institutions are important to the USCIB members, and it’s an opportune time to reimagine how global governance can become more inclusive and effective.

Taxation

Magnifying Your Voice with USCIB:

  • USCIB’s Tax Committee is the most respected U.S. business association on international tax issues. 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 international markets that are important to American business.

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:

  • Build consensus with like-minded industry peers and participate in off-the-record briefings with policymakers both home and abroad
  • 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”).

More Recent Accomplishments

News Stories

USCIB Submits Comments to USTR on Proposed Digital Services Taxes (7/21/2020) - USCIB provided comments to the United States Trade Representative (USTR) regarding the proposed Digital Services Taxes (DSTs) of several countries, including Austria,
Business at OECD Head Shares 2020 Policy Priorities With USCIB (2/11/2020) - Secretary General of Business at OECD (BIAC) Russel Mills visited USCIB’s Washington DC and New York offices the week of

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

Chad J. Withers
Global Tax Director
Caterpillar Inc.

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

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

 

ILO Reaches Ratification on Worst Forms of Child Labor

USCIB applauds the recent universal ratification by the International Labor Organization’s (ILO) Convention on the Worst Forms of Child Labour. All 187 Member States of the ILO supported ratification. The Convention forms the basis for international action to eliminate child labor; its application assists governments globally in developing and adopting effective national laws and policies to eliminate child labor practices. The ILO works with employers, trade unions and governments globally to develop and adopt these standards as part of its unique tripartite approach to work issues.

Child labor has dropped forty percent between 2000 and 2016, but progress has slowed in recent years, particularly among children aged five to eleven and in some geographic locations. Additionally, the COVID-19 pandemic presents an additional risk to progress, potentially leading to the first increase in child labor for the first time in twenty years.

The United States, through the strenuous efforts of the Bureau of International Labor Affairs (ILAB) at the U.S. Department of Labor (DOL), was an early and prolific supporter in the global efforts to eliminate child labor. DOL funding and collaboration has been central to the ILO’s work through the International Program on the Elimination of Child Labor, which has supported over 100 countries in their efforts to eliminate child labor, especially the worst forms.

ILO Director-General Guy Ryder held a virtual ceremony on August 4 to mark the occasion.

USCIB Submits Comments on USMCA Labor Chapter to US Trade Representative

Following the entry into force of the United States-Mexico-Canada Agreement (USMCA) on July 1, the United States Trade Representative (USTR) has requested comments on the procedures for submissions alleging violations under the Labor Chapter. USCIB and its members have been vocal supporters of the inclusion of a Labor Chapter in the USMCA and its Annex which would increase protections for workers abroad, promote business continuity and encourage efficiency.

On August 14, USCIB submitted comments to USTR and  the Interagency Labor Committee for Monitoring and Enforcement (Interagency Labor Committee) with recommendations, such as allowing USCIB to participate and provide information to the Committee as labor unions are invited to do. USCIB is the national employer body recognized by the International Labor Organization (ILO).

The comments also called for greater elaboration of specific procedural provisions. “The interests of all stakeholders should be considered when carrying out labor-related mandates and due process needs to be safeguarded,” said USCIB Vice President for Corporate Responsibility Gabriella Rigg Herzog. “We look forward to lending USCIB’s unique expertise in our continued work with USTR

Global Business Coalition Launched to Advocate Workforce Use of New COVID-19 Vaccines, Pending Availability

New York, N.Y., July 30, 2020 – The United States Council for International Business (USCIB),  The USCIB Foundation, and Business Partners for Sustainable Development (BPSD) have launched Business Partners to CONVINCE, a global communication and education initiative to promote COVID-19 vaccine acceptance among private sector employers and employees.

The new partnership will play an integral role in a broader multi-sector CONVINCE (COVID-19 New Vaccine Information, Communication, and Education) campaign to advance vaccine literacy and help ensure a strong and swift recovery from the COVID-19 pandemic through widespread acceptance of safe, effective and accessible vaccines. The CONVINCE business coalition will leverage USCIB’s extensive global network of leading international business organizations and multinational corporations to help large employers and small and medium-sized enterprises (SMEs) worldwide to promote vaccine literacy and uptake, while BPSD will help to create public-private partnerships to extend the reach of the Coalition, especially in the developing world. Research has shown that employers are among the most trusted sources of information about pandemic response and recovery.

The global CONVINCE effort was developed initially by Wilton Park, a global forum for strategic discussion affiliated with the UK government, in collaboration with the City University of New York (CUNY) Graduate School of Public Health and Health Policy and the Vaccine Confidence Project™ of the London School of Hygiene & Tropical Medicine. Earlier this year, Wilton Park hosted a series of international dialogues to address the urgent need for collective action to ensure widespread uptake of COVID-19 vaccine(s) when available and boost trust in vaccination in general. Participants in these discussions, which included USCIB, agreed to form the CONVINCE initiative as a mechanism to complement and potentially help integrate existing worldwide efforts to build acceptance and uptake of a COVID-19 vaccine.

USCIB President and CEO Peter Robinson stated, “We were pleased to contribute extensively to the Wilton Park dialogues and to highlight the potential role for employers as ‘Trusted Influencers’ as part of the CONVINCE initiative. As the United States affiliate of the International Chamber of Commerce, the International Organization of Employers, and Business at OECD – three of the world’s largest and most representative business organizations – we expect to engage an extensive network to help corporate employers, SMEs and governments meet the intense global and local challenge of health and vaccine promotion. Together, we can mount an unprecedented response to the COVID-19 pandemic.”

Prof. Heidi Larson, Director of The Vaccine Confidence Project at LSHTM, and author of Stuck (Oxford University Press, 2020), a definitive overview of global vaccine hesitancy, stated: “We need to start now to listen and engage local communities to build resilience against COVID-19 and recover as societies, schools and economies build a new future. We are thrilled to be part of this important initiative to build public confidence through CONVINCE.”

Nancy Lee, Programme Director at Wilton Park, said, “We are very pleased that the private sector has taken part in our multisector dialogues and has now made this important commitment to promote COVID-19 recovery by supporting global business efforts to build vaccine literacy and support for the potentially game-changing impact of a COVID-19 vaccine.”

Dr. Scott Ratzan, executive director of BPSD and Distinguished Lecturer at CUNY, said “Many people say the only way we can achieve a ’next normal’ world is with a vaccine, but it will take collective action to make this happen. We are pleased to work across sectors with business leaders, employees and customers on the innovative communication programs that are needed urgently to build the foundation of trust that can lead us towards vaccine-protected communities.”

In collaboration with global leaders in the private and public sector, Business Partners to CONVINCE will be a resource to generate evidence rapidly of COVID-19 vaccine hesitancy, and to develop, test and widely disseminate responsible communication programs in line with the goals of the United Nations and respected science and evidence-driven organizations worldwide.

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. As the U.S. affiliate of the International Chamber of Commerce (ICC), Business at OECD (BIAC), and the International Organization of Employers (IOE), 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: Mike Michener, Vice President for Product Policy and Innovation

Email: mmichener@uscib.org

 

About The USCIB Foundation, Inc.: Since 1980, The USCIB Foundation has been dedicated to a single mission: advancing the benefits of a free market economy and promoting the essential role of the private sector in stimulating economic growth and progress in social development. Today, the Foundation pursues that mission through a portfolio of initiatives that strives to inform future choices made by stakeholders and policy makers that benefit people around the world.

Contact: Abby Shapiro, Secretary and Director

Email: ashapiro@uscib.org

 

About BPSD:  BPSD was launched in 2019 as a Center to create new international public-private partnerships in support of the UN Sustainable Development Goals (SDGs). BPSD provides a framework for governments, business and civil society to share information, resources, activities and capabilities, and works in collaboration to achieve objectives together that the sectors cannot achieve independently.

Contact:

Dr. Scott Ratzan, Executive Director, Business Partners for Sustainable Development

Email: sratzan@businesspartners4sdgs.org

Jumpstart American Jobs Series: Robinson Shares Views on Trade, Supply Chains, Inclusive Multilateralism

President & CEO of GBA Nancy McLernon interviews Peter Robinson, President of RILA Brian Dodge and President & CEO of FMI Leslie Sarasin

Just as American companies and employers led the way in responding to the coronavirus pandemic, they are now prepared to help drive America’s economic recovery. In a series of virtual interviews, the Global Business Alliance (GBA) has provided a forum for leading executives to share perspectives with top policymakers on what it will take to jumpstart American job growth. In the most recent installment, “Sold. Separately”, USCIB President and CEO Peter Robinson joined Food Marketing Institute President and CEO Leslie Sarasin and Retail Industry Leaders Association President Brian Dodge to share views from members and to emphasize the importance of open trade, diversified supply chains and inclusive multilateralism. President and CEO of GBA Nancy McLernon led the discussion.

Robinson kicked off the discussion with highlights of what some USCIB members, such as Target, Amazon, Hanesbrands, Nike and Mastercard, have been doing to address the pandemic.

“One distinctive attribute of USCIB members is their global perspective and action as partners in multilateral institutions to advance response and recovery,” said Robinson. “And they are very concerned about the health of the constituent components of their global supply chains overseas, as well as at home.” He noted that USCIB supports initiatives by ICC, IOE and BIAC calling for governmental support of SMEs to ensure business continuity.

Throughout the discussion, Robinson underscored the imperative of free and fair trade and competition, particularly in light of COVID-related disruptions in supply chains which have given air cover to embracing of protectionist measures by governments.

“We are still in the middle of the pandemic,” noted Robinson. “The only way to ensure that economies grow again is to ensure open trade and investment environments. Increased digitization is going to be a big part of that. The business community, including USCIB, has been vocally opposed to resorting to protectionist policies. It is our view that a reversal of many of these policies in place is necessary to ensure a sustainable, post-pandemic economy.”

Robinson also highlighted the depth of global interdependence and the need to join hands across borders to work on an inclusive pandemic recovery: “COVID-19 knows no borders: it’s a one-world enemy and we need a one-world response”. According to Robinson, “We are entering a ‘new reality’ for business and society—and a new imperative to enhance and strengthen employment, societal resilience, and sustainable development. Multilateral institutions are the vehicles to ensure we have an all-out collective and coordinated effort to ‘Build Back Better’—and all institutions across humanitarian, health, economic, trade, and environmental roles need to work closely with representative private sector organizations.”

USCIB Submits Comments to USTR on Proposed Digital Services Taxes

USCIB provided comments to the United States Trade Representative (USTR) regarding the proposed Digital Services Taxes (DSTs) of several countries, including Austria, Brazil, Czech Republic, India, Indonesia, Italy, Spain, Turkey, the United Kingdom, as well as the European Union.

USCIB’s submission focused on whether these countries violated Section 301 while encouraging the U.S. to seek a multilateral solution.

“The DSTs under investigation are a poor choice to address the tax issues arising from digitalization of the economy and will work against the economic recovery they are intended to help fund,” said USCIB Vice President for Taxation Policy Carol Doran Klein. “Rather, the U.S. should work cooperatively to find an appropriate multilateral solution to taxing the digitalizing economy that does not unduly burden U.S. interests and fosters certainty for business.”

USCIB Urges US Government to Ensure Data Transfer in Light of Ruling by European Court of Justice

USCIB co-signed a multi-association letter to U.S. Commerce Secretary Wilbur Ross in response to a July 16 ruling by the European Court of Justice (CJEU) that invalidated the 2016 EU-US Privacy Shield framework governing the protection of transatlantic data flows.

The Privacy Shield plays a critical role for data transfers for over 5,300 U.S. companies, 70 percent of which are Small and Medium Enterprises (SMEs). These companies contribute significantly to the nearly $1.1 trillion in U.S. total trade in goods and services with the EU. Companies in the automotive, retail, hospitality, logistics, health care, manufacturing and human resource management fields are all certified to the Privacy Shield Program.

The multi-association letter urges the U.S. government to work collaboratively with EU counterparts “to develop a stable and sustainable mechanism for companies to transfer data between the EU and United States” and to ensure that EU regulators allow data transfers to continue while a new agreement is under discussion.

The letter further notes the urgent implications of the COVID-19 pandemic, which has required many American businesses to use remote services and rely upon the ability to move data across many borders.

The CJEU did, however, uphold the validity of the Standard Contractual Clauses (SCC) privacy protective mechanism for transferring data.

USCIB Applauds USTR’s Announcement to Include Ed Potter in USMCA Labor Mechanism

Ed Potter addressing the ILO Conference in Geneva in 2015.

New York, NY, July 20, 2020: The U.S. Council for International Business (USCIB), which represents many of America’s leading global companies, applauded the U.S. Trade Representative’s recent announcement of a select panel for the Rapid Response Labor Mechanism, a key tool for the enforcement of the United States-Mexico-Canada Agreement (USMCA) trade agreement.

“We welcome the inclusion of Ed Potter as one of the select panel members. Potter has worked extensively with USCIB for decades, most recently as former senior counsel for International Labor Affairs and prior to that as a chair of USCIB’s International Labor Affairs Committee (now the Corporate Responsibility and Labor Affairs Committee). Potter is an International Advisory Council Member at the Institute for Human Rights and Business.  For over two decades, he participated on the ILO Committee on the Application of Conventions and Recommendations that holds countries accountable for their obligations resulting from the ratification of ILO conventions.”

Potter is joined by Janice Bellace (Wharton School at the University of Pennsylvania), Lance Compa (Cornell University’s School of Industrial and Labor Relations), Peter Hurtgen (Curley, Hurtgen & Johnsrud LLP), Ira Jaffe (Arbitrator and mediator for labor, employment and benefits disputes) and Kevin Kolben (Rutgers Business School).

The Rapid Response Labor Mechanism, a bilateral annex of the USMCA between the U.S. and Mexico, allows the U.S. to take expedited enforcement actions against individual factories in Mexico that fail to comply with domestic freedom of association and collective bargaining laws.

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 the International Chamber of Commerce (ICC), the International Organization of Employers, and Business at OECD (known as BIAC), USCIB helps to provide 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.

USTR Must Urge Canada and Mexico to Honor USMCA Commitments

USCIB joined the Alliance for Trade Enforcement (AFTE) to send a letter to U.S. Trade Representative Robert E. Lighthizer to ensure that Canada and Mexico abide by the commitment they have made in the United States-Mexico-Canada Agreement (USMCA) and treat U.S. interests fairly.

The letter stated: “We applaud the sentiments that you expressed in your recent congressional testimony about your willingness to seek dispute settlement on issues of importance to U.S. manufacturing, agriculture and service sectors where those countries fall short, including patent, trademark and market access issues impacting innovative industries from both new and longstanding policies and regulations in Mexico and Canada.”

The group noted support for Lighthizer’s attention to the full enforcement of IP commitments made in the USMCA which protects U.S. IP-intensive industries, such as patent linkages and provisions to protect against abuses of the regulatory review exception, as well as broader market access barrier to innovative products, namely the lack of approvals for imported agricultural biotech products. AFTE argued that Mexico’s failure to approve such products threatens both trade with Mexico and U.S. farmers’ access to important technologies; meanwhile, Canada’s Patented Medicine Prices Review Board continues to develop and implement unfair pricing and reimbursement regulatory schemes that don’t account for the cost of research and development of innovative treatments, which ultimately reduces incentives for American scientists and manufactures to research and develop new treatments.

AFTE however applauded the important leap forward made by the USMCA’s digital trade provisions, which include key commitments and significant improvements over prior agreements.

AFTE is a coalition of trade associations and business groups dedicated to ending foreign unfair trade practices that harm American businesses and workers and to ensuring that America’s trading partners are held accountable for the commitments that they have made to treat American goods and services fairly. AFTE members represent companies – both large and small – from across the economy, including the manufacturing, agriculture, and service sectors. AFTE supports actions and policies that encourage U.S. trading partners to open their markets, reduce barriers to trade, and provide effective protection and enforcement of intellectual property (IP) rights.