USCIB Congratulates Colombia on Formally Becoming OECD Member

Pictured from left: Iván Duque Márquez, President of the Republic of Colombia and Angel Gurría, Secretary-General of the OECD (Photo: OECD/Victor Tonelli)

The Organization for Economic Cooperation and Development (OECD) announced that Colombia has formally become an OECD Member as of April 28, 2020. Colombia is the 37th country to do so in the Organization’s near 60-year history.

According to the OECD, Colombia has now completed its domestic procedures for ratification of the OECD Convention and deposited its instrument of accession. This brings to a successful conclusion an accession process that began in 2013.

“Colombia is an important market for many companies, and we commend Colombia on successfully concluding this lengthy process and committing to the high standards of the OECD,” said USCIB Senior Director for Trade, Investment and Financial Services Eva Hampl. As the official voice representing U.S. business in this process, USCIB was actively involved in providing input into Colombia’s accession process via Business at OECD (BIAC), the official business voice at the OECD.

OECD Member countries formally invited Colombia to join the Organization in May 2018, following a five-year accession process during which it underwent in-depth reviews by twenty-three OECD Committees and introduced major reforms to align its legislation, policies and practices to OECD standards. These spanned the breadth of policy fields including labor issues, reform of the justice system, corporate governance of state-owned enterprises, anti-bribery, trade, and the establishment of a national policy on industrial chemicals and waste management.

USCIB Comments on Negotiating Objectives for a US-Kenya Trade Agreement

Following the Administration’s recent notice to Congress that it is going to enter into negotiations with the Republic of Kenya for a U.S.-Kenya trade agreement, USCIB submitted comments on April 28 to offer its input on negotiating objectives.

USCIB’s comments offered support for a negotiation of a comprehensive trade agreement with Kenya as part of a broader strategy to open international markets for U.S. companies and remove barriers and unfair trade practices in support of economic growth and job creation.

“We strongly believe that free trade with Kenya is overwhelmingly in the interests of both countries and their global trading partners, provided that the agreement is a high standard and comprehensive bilateral trade and investment agreement,” said USCIB Senior Director for Trade, Investment and Financial Services Eva Hampl.

According to USCIB, reaching an agreement with Kenya is important for the United States because this would be the first trade agreement with a Sub-Saharan African country.

“Beyond Kenya, the Administration should continue ambitions to initiate trade negotiations with other African partners,” added Hampl.

USCIB stressed that a successful trade agreement with Kenya should be negotiated as a single, comprehensive agreement which covers comprehensive market access and national treatment for goods, services, investment and government procurement, and also addresses key rules issues as well.

Beyond Kenya, a high standard U.S.-Kenya FTA could serve as a benchmark for the further negotiation and implementation of the broader African Continental Free Trade Area Agreement (AfCFTA), parts of which entered into force in May 2019, and is viewed as a great step forward for African trade modernization.

Op-Ed: Business Must Come Together to Respond to COVID-19 Now

Op-Ed by Scott C. Ratzan MD, Executive Director of Business Partners for Sustainable Development

Earlier this month, nearly 500 experts in public health, law and human rights wrote an open letter to U.S Vice President Mike Pence to act swiftly, fairly and effectively, warning that “the COVID-19 outbreak is unprecedented in recent American history, and there is no playbook for an epidemiological event of this scope and magnitude.”

Yet, just weeks later, we all are living with unprecedented turmoil from this novel coronavirus, COVID-19.

While the virus was named a Public Health Emergency of International Concern (PHEIC) by the World Health Organization (WHO), this is the seventh time we have had such a proclamation in the last two decades. H1N1 influenza, polio, ebola in West Africa and in the Democratic Republic of Congo and Zika, all abated and did not cause as much havoc. Financial markets are on a roller coaster, planes grounded and many of us sheltering in place or in a self-imposed or government-recommended quarantine.

The future of our public health and economy depend on how government officials, policymakers, leaders and our fellow citizens react.

This includes honest, coherent, transparent, and timely communication while providing adequate funding and support for the response. The health care system needs immediate resources for equitable and effective infection control and the means to effectively manage the disease.

As 24/7 news, interactive websites, social media and alerts fill our day, the virus continues to spread. Unfortunately, without a clear treatment or cure, fear and uncertainty results in a rich environment for misinformation and misguided actions.

COVID-19 is a test of our system’s ability to address a legitimate public health threat with an unknown trajectory. Multiple sectors must leverage knowledge, expertise, networks and resources to produce better public health outcomes. Being prepared with a plan and being proactive is the name of the game in prevention, mitigation and management of risk and the adverse consequences of any threat.

Business must play a critical role in planning, implementing and adapting to this crisis due to its wide reach, resources and impact on employees, partners and markets.

Communication from employers on coronavirus is the most credible source of information, according to a recent Edelman ten-country study (March 6-10). This is consistent with a 2020 Edelman Trust Barometer, which showed that “my employer” is the most trusted institution by 18 points over business in general and NGOs, and by 27 points over government and media.

Employers are central in communicating the response. The public needs the assurance that as more is learned, information will be shared accurately and clearly from sources they trust.

This emergent threat challenges our society to cooperate amongst all sectors, including government, media, technology platforms and the private sector.

We know that large scale communication campaigns that employ behavioral economics, health literacy and communication levers (mass and social media) can drive citizens toward healthier decisions. As COVID-19 continues to spread, the business sector’s historical hallmarks of innovation, efficiency and management can help address the challenge we face today.

There are some promising examples:

  • A COVID-19 Therapeutics Accelerator supported by Mastercard will join with the WHO, government and private sector funders and organizations to speed the response to the COVID-19 epidemic by identifying, assessing, developing and scaling-up treatments.
  • The USCIB is leveraging existing networks to catalyze partnerships to address challenges, such as COVID-19. This includes working with the International Organization of Employers (IOE) and the International Labor Organization (ILO) to distribute WHO guidance on simple and low-cost measures for creating a healthier and more productive workplace.
  • The International Chamber of Commerce (ICC) and Business at OECD (BIAC) are also working on the design of an action plan to reach millions of businesses with recommendations to help governments deal with the threat to the global economy.
  • The Global NGO Business Fights Poverty is collaborating with Business Partners for Sustainable Development (BPSD) to develop an online “challenge” discussion on how business should tackle the coronavirus challenge.
  • NBCUniversal, Viacom/CBS, iHeartMedia, The Atlantic, Disney/ABC Television and the Ad Council will donate advertising inventory for campaigns that will advise consumers about social distancing, steps that can be taken to protect the public and more.

While the WHO was established to advance “informed opinion and active cooperation on the part of the public” we have now learned that health issues are not confined to one organization or sector.

Only by working together, with the public and private sectors, we can advance a society where our livelihoods are not threatened by similar future outbreaks and create a resilient society capable of responding to any future threat we may face.

Scott C. Ratzan MD is Executive Director of Business Partners for Sustainable Development. He is Former Senior Fellow at Harvard Kennedy School Mossavar-Rahmani Center for Business and Government.

Coronavirus Impact on ATA Carnet

USCIB, as the national guaranteeing and issuing association in the U.S. for ATA Carnets, along with our service providers, Boomerang Carnets and Roanoke, have been watching with concern reports of the spread of the Coronavirus (COVID-19) and its potential impact to ATA Carnet holders and the business community at large.

In our role as an advocate for global trade and a passionate supporter of its importance to growth and prosperity, USCIB believes that every effort should be made to balance legitimate health and safety concerns with the imperative to actively support the free flow of goods and services across borders.  In that spirit, we will work with Foreign National Guaranteeing Associations and National Customs Administrations to attempt to mitigate any ATA Carnet claims for U.S. issued Carnets that are caused by restrictions in the country of re-exportation due to the virus.

USCIB has been in contact with China Customs and have received their support on dealing with any future claims on U.S. issued Carnets. At the same time, USCIB also plans to work with U.S. Customs and Border Patrol (CBP) in efforts to help mitigate any Chinese Carnets impacted by the virus on re-exportation from the U.S.  It is important to note, however, that all holders should keep as much documentation (e.g. airline ticket cancellations/rebookings, hotel reservation extension etc..) as possible to support their case.

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 Releases 2020 Trade and Investment Policy Priorities

Each year the Trade and Investment Committee of the U.S. Council for International Business (USCIB) conducts an extensive consultation process among members in identifying priorities for the coming year. The 2020 USCIB Trade and Investment Agenda includes a list of key principles our members support for open trade and investment and an action plan for addressing our trade and investment policy priorities.

The action plan anticipates another busy year on trade and investment including:

  • pressing for final approval and implementation of USMCA,
  • seeking Administration action on phase 2 agreements with China and Japan,
  • supporting movement on trade negotiations with the EU and UK,
  • seeking continued progress on negotiations in the WTO on a digital trade agreement and
  • modernizing the WTO.

“The Agenda provides the framework for USCIB work to advance policies and negotiations that will open international markets for our member companies and strengthen the global rules-based trade and investment framework,” said USCIB Senior Vice President for Policy and Government Affairs Rob Mulligan. 

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.”

USCIB Lays Out Priorities for WTO Modernization

Washington, D.C., March 13, 2019 – Responding to this week’s hearing in the Senate Finance Committee on the future of the World Trade Organization, the United States Council for International Business (USCIB), which represents America’s most successful global companies, has submitted a business roadmap for the WTO laying out priorities for the organization’s modernization.

“The continued existence and effectiveness of the WTO is vital to U.S. business,” stated USCIB President and CEO Peter Robinson and USCIB Trade and Investment Committee Chair Charles R. Johnston in their transmittal letter.

“The WTO is a cornerstone of the global rules-based trading system and has helped spread growth and development for decades. The WTO’s existing agreements, such as those on intellectual property rights, sanitary and phytosanitary measures, and technical barriers to trade, provide practical commercial benefits for business because they establish global frameworks of rules designed to facilitate international trade.”

USCIB’s roadmap focuses on addressing subsidies and other market-distorting support provided to state-owned enterprises, the establishment of new rules for current issues such as digital trade and customs processes on electronic transmissions, and ensuring a properly functioning appellate body, among other issues.

The statement notes that the U.S. has been a major beneficiary of the WTO’s dispute settlement system, bringing and winning more cases than any other WTO member. “In fact, the U.S. has prevailed in over 90% of the complaints it filed,” USCIB observed.

USCIB urged WTO members to actively solicit the views of the business community, which undertakes the vast majority of cross-border trade and investment that is impacted by WTO rules. “The private sector has a direct stake in the rules that will be the outcome of the government-to-government discussions and, accordingly, private sector comments and recommendations should be actively solicited and given careful consideration,” the statement said.

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 in the News: Taxes, Trade and Tariffs

USCIB’s voice and views were reflected in many of the top stories of the past several months, which saw a heavy focus on taxes, trade and tariffs. USCIB and its global network were featured prominently in numerous stories covering NAFTA modernization, China tariffs and the OECD’s work on global tax policy.

In October, USCIB CEO and President Peter Robinson contributed a letter to the Financial Times in response to an editorial urging action on the digital divide. In his letter, Robinson noted that “public-private partnerships are indeed needed to broaden access to the internet, and companies are already moving ahead in this regard, in addition to taking action on their own.”

In discussing G20 trade tensions, USCIB Senior Vice President Rob Mulligan sat down with BBC World News to do a live television interview. Mulligan said that Trump is right to address the balance of trade between the U.S. and China, but that tariffs aren’t the answer and will ultimately cause higher prices and job losses.

To read more of USCIB activity in the media, please visit this link.