USCIB Welcomes Senate Approval of USMCA

Washington, D.C., January 16, 2020 – The U.S. Council for International Business (USCIB), which represents many of America’s leading global companies, issued the following statement on the announcement today of Congressional approval of the United States-Mexico-Canada Agreement (USMCA) trade agreement, updating the North American Free Trade Agreement (NAFTA):

“USCIB welcomes today’s announcement of Senate approval of USCMA following overwhelming bipartisan support of the agreement in the House of Representatives. USMCA is an important agreement for U.S. industry for future economic growth, containing several provisions important to our members modernizing the original NAFTA, like those on digital trade and customs.

While we continue to be concerned about certain provisions including the erosion of vital protections impacting the ability to innovate for our industry leaders, we applaud Congressional support of the agreement supporting over 12 million American jobs that depend on trade with Canada and Mexico. We look forward to entry into force of this important trade deal for U.S. business, and continued dialogue with the Administration on ensuring critical protections will be upheld in future agreements.”

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.

Contacts:

Kira Yevtukhova, USCIB
+1 202.617.3160,
kyevtukhova@uscib.org
  Glen Brandow, USCIB
+1 212.703.5043,
gbrandow@uscib.org

USCIB Commends Phase 1 China Deal, Urges Further Negotiations

Washington, D.C., January 15, 2020 – The United States Council for International Business (USCIB), which represents many of America’s leading global companies, welcomes the signing of a Phase One deal with China today in Washington.

China continues to be an important market for U.S. business, and we recognize the progress on food and agricultural export opportunities in this agreement. It also addresses issues related to resolving intellectual property theft and forced technology transfer, which negatively affect the global competitiveness of our companies, but more remains to be done to ensure American companies are afforded a level playing field in China.

USCIB continues to support a comprehensive, high-standard deal that that holds China accountable for complying with their international obligations, vigorously pursuing a level playing field overseas, while avoiding policies that undermine U.S. industry competitiveness. We look forward to studying the details of this initial Phase One deal, and to a next phase of negotiations to address remaining issues, including removing the harmful tariffs that have been imposed on both sides.

In addition to working directly with China, we also continue to urge the Administration to work closely with allies to address many of these concerns on fundamental Chinese policies and practices. We are therefore pleased that the United States is continuing to work with the European Union and Japan toward that goal, exemplified by the cabinet-level meetings this week in Washington.

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.

USCIB Celebrates International Human Rights Day

December 10th is known internationally as Human Rights Day, and marks the 71st anniversary of the adoption of the Universal Declaration of Human Rights in 1948 by the United Nations General Assembly. USCIB joins the UN in celebrating Human Rights Day and all of the work being done by its members to promote respect for human rights in global business.

“USCIB and our members are committed to demonstrating respect for human rights in our operations and in line with the UN Guiding Principles on Business & Human Rights (UNGPs). In 2019 we led or participated in a number of activities promoting the importance of human rights, as well as took bold and innovative action individually and in collaboration with stakeholders to support the realization of the UN Sustainable Development Goals (SDGs),” said USCIB Vice President for Corporate Responsibility and Labor Affairs Gabriella Rigg Herzog.

“This year we proudly became a member of the International Labor Organization (ILO) Global Business Network on Forced Labor, co-hosted a workshop on sports and human rights and the 11th Engaging Business Forum on business & human rights, were honored to host UN High Commissioner for Human Rights Michelle Bachelet for a dialogue with our members, and helped to successfully negotiate a first ever ILO labor standard (C 190) on violence and harassment in the workplace. At the ILO, we stood up to fight for the rights of LGBTQI individuals to also be recognized in ILO labor standards, and at the UN joined with civil society organizations and government at the 8th UN Annual Forum on Business & Human Rights for a progress check on implementing the UNGPs. USCIB and our network of member companies look forward to another year of partnership, advocacy and action on human rights and business,” added Herzog.

USCIB Statement: 25th UN Framework Convention on Climate Change Conference of the Parties

COP25 in Madrid, Spain
Photo credit: UNFCCC

USCIB issued the following statement on December 6 for the 25th United Nations Framework Convention on Climate Conference of the Parties (COP25). The statement reflects U.S. business priorities.

For the 25th year, USCIB is participating in deliberations of the UN Framework Convention on Climate Change in Madrid. USCIB joins with many others in highlighting the critical importance of inclusive multilateralism as a means to increase pace and impact to meet climate commitments and objectives, involving all societal partners, including the private sector. Economic policies that drive growth and create jobs in the green economy will be critical to generate the necessary resources and enable business to make its strongest contributions to implementation of the UNFCCC and its Paris Agreement, and to sustainable development.

Since its conclusion in Paris in 2015, USCIB has supported the Paris Agreement. USCIB recognizes and expresses its deep appreciation to U.S. delegations for attending and engaging responsively with U.S. business at UNFCCC meetings. We continue to encourage the Administration to remain at the Paris Agreement table to advance and defend U.S. environmental protection, economic growth, innovation and competitiveness, as it has done consistently in the UNFCCC since COP1.

USCIB recognizes that urgent action to tackle climate change is needed on all fronts. According to the IPCC, reducing future climate-related risks in the context of sustainable development will depend on the upscaling and acceleration of far-reaching climate mitigation and both incremental and transformational adaptation. In this regard, business investment, innovation and action, working in partnership with governments, society and other stakeholders will be vital.

We continue to call for the commitment of all governments to this global effort, so that business and government can work together to enact economically sound policies that:

  • Promote development, deployment and use of cleaner and more efficient technologies and energy sources
  • Enhance sustainable energy access and security in all countries
  • Utilize markets and market-based approaches to animate least-cost GHG reductions, working through multilateral trade
  • Drive investment in innovation for mitigation and adaption
  • Seek to strengthen synergy across multilateral trade, investment and climate policy frameworks

As we work to achieve the goals of the Paris Agreement, we need to include all of society’s stakeholders working together towards a sustainable path for communities, workers and the climate that leaves no one behind. Of particular importance will be government education and training policies that are inclusive and support workers and their communities in securing the skills, capabilities and investments needed to thrive in the face of transformative change.

We share the concern about the need for more rapid and widespread progress toward the Paris goals, and encourage renewed efforts to get back on track, in particular with relation to Article 6.

We welcome ambitious aspirations on the part of organizations and companies and look forward to mobilizing the best of business forward in addressing this critical global challenge, delivering energy access and security, job creation and shared economic prosperity.

USCIB Issues Climate Change Statement on UN Day

In light of the United Nations celebrating the ratification of its 1945 Charter on October 24, USCIB issued the following statement:

“On this UN Day, USCIB would like to join others in recognizing the indispensable importance of the UN system to American business in advancing international cooperation and providing the infrastructure in which we create shared value and serve society.

USCIB reaffirms our support for U.S. involvement in the UN Framework Convention on Climate Change (UNFCCC) and its Paris Accord. We welcome the growth of the American energy economy from fossil fuels to nuclear to renewables to new options for energy efficiency. The Paris Accord allows every country to define its own pathway to tackling climate risks, and the U.S. has already made good progress on that front, reducing emissions and improving efficiency while advancing its own energy security, growing U.S. jobs and opening new markets for innovative American technologies.

Without U.S. leadership at the Paris Accord table, promoting its strategic and economic interests alongside other countries, opportunities for the deployment of these American private sector solutions could be threatened. We encourage the Administration to revisit its decision and submit, as appropriate, its own visionary plan to the UNFCCC and Paris Accord, in which American energy objectives can co-exist with environmental protection, private sector innovation and sustainably meeting both American and global growing energy demands.”

USCIB Releases Statement on China’s WTO Commitments, Urges Bilateral and Plurilateral Dialogue

In response to an annual request by the United States Trade Representative for comments on China’s compliance with WTO commitments and notice of public hearing, USCIB gathered member input and submitted a comprehensive statement on September 18.

The statement emphasizes the direct and important stake American business holds in the relationship between the U.S. and China and in its success. As the world’s largest economy, China’s practices and policies have a significant impact on its trading partners, and engagement with China can be challenging. China’s growing importance in the global economy provides strong incentives for both countries to work together to address common challenges and responsibilities.

USCIB members continue to have serious concerns with several policies and practices maintained by China that undermine the ability of U.S. businesses to operate, including unfair and discriminatory governmental practices. Furthermore, U.S. tariffs and Chinese retaliatory tariffs imposed as a result of the U.S. Section 301 investigation into China’s forced technology transfer, intellectual property, and innovation policies have been disruptive to U.S. business.

“The tariff actions have not resolved the underlying issues identified by the U.S. or have changed Chinese behavior regarding the matters covered by the investigation or the broader issues identified in this submission,” said Senior Director for Investment, Trade and Financial Services Eva Hampl.

Accordingly, the USCIB submission urged high-level bilateral dialogue between the U.S. and China. USCIB also urged both countries to utilize, in addition to the WTO, the full range of formal multilateral fora, including Asia-Pacific Economic Cooperation (APEC) Forum and the Organization for Economic Co-operation and Development (OECD), to work toward improved commercial relations. Plurilateral dialogues that include U.S.-friendly jurisdictions such as the European Union, Canada or Australia should also be considered.

“This annual submission provides a valuable opportunity to stakeholders to share issues that business is facing in China, following their accession 18 years ago in 2001,” said Hampl. Many sectors continue to face significant issues related to market access, transparency, regulation and protection of intellectual property rights. In addition to addressing many cross-sectoral and sector specific issues, this submission takes the opportunity to address the ongoing tariff war with China and the damaging effect that is having on companies.

“USCIB has been consistently pushing back against this tariff escalation, the start of which alleged to address some of the issues highlighted in our broader China WTO submission,” added Hampl. “Our submission clearly shows that the issues related to IP theft and forced tech transfer continue to be a problem for companies doing business in China.”

US Business Priorities for UNGA High-Level Opening Week

Photo credit: United Nations

USCIB issued the following statement on September 18 for the 75th United Nations General Assembly High-Level opening week. The statement reflects U.S. business priorities.

On the occasion of the High Level Opening Week of the UN General Assembly on the urgent and intertwined topics of climate change and sustainable development, USCIB joins with many others in highlighting the critical importance of inclusive multilateralism as a means to increase pace and impact to meet climate, financing for development and Sustainable Development Goals (SDGs) commitments and objectives, involving all societal partners, including the private sector. In each of these three areas, economic policies that drive growth and job creation will be critical to generate the necessary resources and enable business to make its strongest contributions to implementation.

UN 2030 Agenda and Sustainable Development Goals (SDGs)

USCIB members have placed the SDGs and the UN 2030 Sustainable Development Agenda at the center of their sustainable development policies and actions.  As needed progress towards delivering the SDGs is lagging, we encourage governments to do likewise. We urge the United Nations to call for greater global action to achieve Agenda 2030, using the occasion of its 75th anniversary in 2020 to galvanize the international community and actively include business and other non-state actors.

Business for 2030 homepage logoScientific assessment, policy dialogue and assessment all need to integrate business expertise and views on a more systematic basis at international, national and local levels. The private sector brings important experience and knowledge to deliver the 2030 Agenda; it is in the DNA of business to turn challenges into opportunities and to innovate and develop practical and realistic solutions for the problems we face together.  Recent examples of this business commitment and action will be highlighted at the September 25 SDG Business Forum, organized by ICC with the UN GC, the International Organization of Employers and the UN, and can be found on USCIB’s Businessfor2030 web platform.

In addition, a renewed emphasis on public-private sector partnerships is required to crowd-in private sector solutions.   In our view, business is needed more than ever as a source of solutions, real world experience, innovative technology, financial resources and partnerships in the multilateral system.  The UNGA SDG Summit is an opportunity to move toward mainstreaming collaborative approaches among the UN, governments, civil society, and business throughout the implementation of the Agenda 2030.

Climate Change

On the occasion of the UN Climate Action Summit, USCIB recognizes that we must take urgent action to tackle climate change on all fronts.  According to the IPCC, reducing future climate-related risks will depend on the upscaling and acceleration of far-reaching climate mitigation and both incremental and transformation adaptation.  In this regard, business investment, innovation and action, working in partnership with governments, society and other stakeholders, will be vital.

We continue in our active support of the 2015 Paris Accord and the world business position presented at COP21.  We continue to call for the commitment of all governments to this global effort, so that business and government can work together to enact economically sound policies that:

  • Promote development, deployment and use of cleaner and more efficient technologies and energy sources
  • Enhance sustainable energy access and security in all countries
  • Utilize markets and market-based approaches to animate least-cost GHG reductions, working through multilateral trade
  • Drive investment in innovation for mitigation and adaption

We share the concern that there is a shortfall in hoped-for progress toward the Paris goals, and encourage renewed efforts to get back on track.  We welcome ambitious aspirations on the part of organizations and companies and look forward to bringing the best of business forward in addressing this critical global challenge, working closely with the UN Framework Convention on Climate Change en route to the 25th Conference of the Parties in Santiago, Chile.

Financing for Development

A major challenge faced in achieving the 2030 Agenda for Sustainable Development is lack of financial resources, from both public and private sources.  Domestic resource mobilization is one of the core pillars identified in the Addis Ababa Action Agenda to help close this gap, and the private sector is indispensable in this regard.  However, even with robust plans to incorporate financing for development, governments still need to do more to enhance enabling frameworks for investment and strengthen rule of law and institutions needed for inclusive economic prosperity.

At the UN High Level Meeting on Financing for Development, we encourage governments to redouble their efforts to protect human rights, tackle corruption wherever it is encountered in public or private sectors and pursue democratic and transparent processes whether via international cooperation or at home.

USCIB Urges Ongoing US-China Negotiations

Washington, D.C., August 13, 2019 – In response to President Trump’s announcement earlier today to delay implementation of a ten percent tariff on imports from China, the United States Council for International Business (USCIB), which represents America’s most successful global companies, urged the U.S. and China to continue negotiations toward a comprehensive agreement.

“Simply delaying harmful tariffs on a select number of particularly impacted products from September 1 to December 15 is not a solution,” said USCIB President and CEO Peter Robinson. “It is crucial for the United States and China to engage in continuous discussions in order to reach a negotiated outcome with the goal of removing these tariffs and eliminating market barriers and discrimination.”

Robinson noted that American business continues to have major problems with China’s commercial policies and urged the Trump administration to work more closely with key U.S. trading partners and with the business community to address serious Chinese trade abuses, including referring U.S. complaints to the World Trade Organization.

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, 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
+1 212.703.5043, jhuneke@uscib.org

USCIB Objects to Implementation of Digital Service Taxes by France

Washington, D.C., July 17, 2019 – Responding to the recent announcement by France to implement a digital service taxes (DST), the United States Council for International Business (USCIB), which represents America’s most successful global companies, urges countries to avoid unilateral measures and instead pursue a consensus-based, comprehensive and income tax-based solution. USCIB supports the OECD Inclusive Framework process for reaching agreement on these global issues.

The French law will impose a tax of three percent on certain revenue earned by technology companies including advertising, commissions from digital marketplaces and sales of data.

“Taxes on revenues are distortive,” said USCIB Vice President for Tax Policy Carol Doran Klein. “The total tax may exceed company profit and misallocate profits to the market jurisdiction. Any solution should be treaty compliant and designed to avoid controversy. It should tax income based on where value is created by companies, including appropriate recognition of where intangibles are created. Furthermore, any solution should not discourage innovation.”

Klein also warned that the French tax will not be easy to implement and will put a significant burden on companies to set up systems to track global revenues. “Implementing such new systems would be both time consuming and expensive – not simple or easily implemented – and would divert company resources from useful profit-making activities.”

“It is unfortunate that France has decided to repeat the mistakes identified in the debate over the unsuccessful EU DST,” said Bill Sample, chair of USCIB’s Tax Committee. “I urge France to focus their energies on reaching a consensus solution within the OECD’s Inclusive Framework for a sustainable international tax system that recognizes innovation and production and minimizes the adverse impact of the costs of double taxation on business investment and growth.”

USCIB reiterated its concerns in a letter to the government of New Zealand, which is also looking at options for taxing the digital economy.

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, the International Organization of Employers and Business at OECD, USCIB provides business views to policy makers and regulatory authorities worldwide, and works to facilitate international trade and investment. More at www.uscib.org.

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

USCIB Applauds Approval of OECD Principles on Artificial Intelligence

Washington, D.C., May 22, 2019 – The United States Council for International Business (USCIB), applauds the Organization for Economic Cooperation and Development’s (OECD) approval on May 22 of the OECD Principles on Artificial Intelligence (AI). Working through Business at OECD (BIAC), a core group of USCIB members participated in a special, 50+ member experts group that was convened to scope these principles. They contributed directly to the development of five complementary, values-based principles for the responsible development and stewardship of trustworthy AI and five recommendations for public policy and international cooperation.

Importantly, these principles are not prescriptive. They highlight human-centered values, fairness, transparency, robust security, and accountability as foundational elements for AI deployment that will ensure inclusive growth, sustainable development and well-being. The principles, which were developed through multistakeholder dialogue involving input from business, government, civil society, the technical community, and labor unions, also recognize the appropriate role of governments in creating an enabling environment for research and development to drive innovation in trustworthy AI. They call upon governments to develop mechanisms to share data and knowledge and programs to equip people with digital skills so they can transition to new employment that will harness AI for economic and societal good. The OECD’s 36 member countries, along with Argentina, Brazil, Colombia, Costa Rica, Peru and Romania, who signed up to the AI Principles at the organization’s annual Ministerial Council Meeting today in Paris, further agreed to cooperate across borders and sectors to share information, and develop international, interoperable standards to ensure safe, fair and trustworthy AI.

“USCIB is honored that its members played a direct role in shaping principles that will enable us to tap the extraordinary potential of Artificial Intelligence in a manner that will improve economic and societal well-being across diverse sectors such as energy and the environment, healthcare, and transportation, to name a few,” said USCIB President and CEO Peter Robinson. “Perhaps most important, these principles include important safeguards that keep human-centered values at the core of AI deployment and prevail upon all ‘AI actors’ to respect democratic values throughout the AI system lifecycle, commit to transparency, and to demonstrate accountability, among other responsibilities. We see a bright future ahead and look forward to the adoption of these principles by OECD members and non-members alike,” added Robinson.

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, the International Organization of Employers and Business at OECD, USCIB provides business views to policy makers and regulatory authorities worldwide, and works to facilitate international trade and investment. More at www.uscib.org.

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