USCIB Submits Negotiation Objectives for US-EU Trade Deal

USCIB submitted negotiation objectives for a U.S.-EU Trade Agreement to USTR.
The EU countries together make up the number one export market for the U.S., with goods exports to the EU in 2016 totaling $269.6 billion, constituting 18.6% of total U.S. goods exports.

 

USCIB submitted negotiation objectives for a U.S.-EU Trade Agreement to the United States Trade Representative (USTR) on December 11. The submission was filed in response to USTR’s request for comments and emphasized the importance of a comprehensive negotiation, covering not only market access for goods, but also critical services issues.

The USTR request for comments follows the Trump administration’s announcement to Congress on October 16 of its intention to initiate negotiations on a U.S.-EU Trade Agreement. USCIB supports negotiation of a comprehensive trade agreement with the EU as part of a broader strategy to open international markets for U.S. companies and remove barriers and unfair trade practices in support of U.S. jobs. USCIB priority issues for negotiation of a U.S.-EU agreement include investment, customs and trade facilitation, express delivery services, improved regulatory cohesion, digital trade, intellectual property, government procurement and SOEs, and financial services.

“The EU is an important trade partner for the United States,” said USCIB Senior Director for Investment, Trade and Financial Services Eva Hampl. “USCIB members see the value of common approaches toward establishing a more integrated and barrier-free transatlantic marketplace. Regulatory discrimination and differentiation across the Atlantic is an increasingly frustrating obstacle to trade, investment and the ability to conduct business.”

USCIB supported the negotiations of a comprehensive, high-standard U.S.-EU trade agreement, the Transatlantic Trade and Investment Partnership (TTIP), which commenced in 2013 and aspired to eliminate tariff and no-tariff barriers on goods and services trade between the U.S. and the EU. These negotiations were halted by the current administration, but the range of issues that were on the table at the time, ranging from strong investment protections, to increased trade facilitation, and regulatory coherence, continue to be of great importance to our members.

The EU countries together make up the number one export market for the United States, with goods exports to the EU in 2016 totaling $269.6 billion, constituting 18.6% of total U.S. goods exports. U.S. goods and services trade with the EU totaled nearly $1.1 trillion in 2016, with exports totaling $501 billion. The United States also has a surplus in services trade with the EU, totaling $55 billion in 2016. According to Hampl, a successful trade agreement with the EU should cover not just market access for goods, but also address important services issues.

Update from the Field: Hunting for “Landing Zones” at Climate Change Conference in Poland

Norine Kennedy at COP24
COP24 is to finalize a so-called Paris Rulebook, which will provide implementation guidance on how countries put the Paris Agreement into action.
Crucial to business will be outcomes on carbon markets.

 

The 24th UN Framework Convention on Climate Change Conference of the Parties (UNFCCC COP24) began on Sunday, December 2 and will run through December 14 under the Presidency of Poland, in Katowice, Poland.  On Saturday night, the negotiating groups delivered a first round of outcomes to be taken up by the Ministers arriving for the 2nd week.  Many key business issues remain incomplete or “in brackets” in the current draft “Paris Rulebook,” intended to guide putting the Paris Agreement into action.  For the week ahead, high level government representatives will be seeking “landing zones” to resolve remaining substantial divisions.

Over 30,000 are in attendance here, including USCIB members Arkema, Chevron, Mars, Novozymes and Salesforce, joining USCIB staff Norine Kennedy and Mia Lauter in tracking the complex discussions, meeting with U.S. and other government delegations and partnering with key business groups.  Here in Katowice, the International Chamber of Commerce (ICC) serves as focal point for business, convening daily meetings to share intelligence and organizing the UNFCCC Business Day on December 6.

Sticking topics have included provision of how to treat compensation for loss and damage, financial support to developing countries for greenhouse gas reductions and technology cooperation, the design of elements relating to carbon markets and different rules and practices that would apply to developing and developed countries. Delegates are talking about the IPCC1.5 Special Report, worrying increases in greenhouse gas emissions and tensions in France sparked by the proposed fuel tax, since rescinded by the Government of France.

COP24 is to finalize a so-called Paris Rulebook, which will provide implementation guidance on how countries put the Paris Agreement into action.

“So far, negotiations have proceeded predictably, albeit too slowly to conclude in time,” observed Kennedy, who leads USCIB policy work on the environment and climate change. “The complexity of technical and political issues obscures the real challenge: mobilizing private sector investment and innovation at a pace and scale that would advance the UNFCCC and Paris objectives.”

According to Kennedy, the general feeling among delegates is that a fair amount of political will, particularly among high-level representatives and Ministers of Environment, will be required in order to successfully conclude.

“There is no one issue that is dominating conversations,” added Kennedy. “Rather, the sheer number of issues to be negotiated and the level of technicality those issues present is daunting for Parties to manage (or business representatives to track).”

The smaller than usual U.S. delegation here is led by Trigg Talley, and includes other State Department, Energy and EPA representatives.  Next week, Assistant Secretary of State Judy Garber and Wells Griffith (White House) arrive for the high-level portion of the negotiations.

Crucial to business will be outcomes on carbon markets. Countries seem to be falling into one of two camps:

  • The view of the U.S. is that any exchange – known as an ITMO (internationally transferred mitigation outcome) – should remain between the countries undertaking the transaction, and that both countries would agree their accounting and other arrangements accordingly.
  • Other parties take the view that ITMO approval should come through a centralized UNFCCC body, and that some share of the transactions (“a share of the proceeds”) should be allocated to a central fund or other UNFCCC-determined purpose.

Also crucial to business will be the potential adoption of the Silesian Declaration on Just Transition proposed by the Polish Presidency. Many parties support the Declaration, but others feel that they haven’t had enough time to examine the proposal.

“We are flagging the number of climate topics that are spilling into other forums and key issues, such as human rights and trade,” said Kennedy. “Following discussions with the U.S. Delegation here, USCIB has asked the State Department to stand firm against any intention to use participation in the Paris Agreement as a litmus test for trade policies among nations.”

Kennedy also observed that protesters and some social media accounts continue to complain about the presence of business at COP24, asserting that their involvement here constitutes a “conflict of interest” and interferes with the ability of governments to reach an ambitious agreement.  In the week ahead, USCIB members and staff will continue to express U.S. business priorities, working closely with the Administration to promote energy innovation and advance substantive business engagement.

International Business Magazine: Fall/Summer 2018

The Summer/Fall 2018 issue of USCIB’s quarterly International Business magazine is available here. The issue features a timely column by USCIB President and CEO Peter Robinson titled, “The Myth of Private-Sector ‘Conflict of Interest’ at the UN. The issue also features news stories on how tariffs harm companies and consumers, tax reform impacts, and reinforcing US-China tie, plus news from our global network–Business at OECD, the International Organization of Employers and the International Chamber of Commerce.

“International Business,” USCIB’s quarterly journal, provides essential insight into major trade and investment topics, a high-level overview of USCIB policy advocacy and services, USCIB member news and updates from our global business network.

Subscribe to USCIB’s International Business Magazine

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Non-members may subscribe to “International Business” and other USCIB print publications at an annual rate of $50 (U.S.) for domestic delivery, or $75 for overseas delivery. Contact us to subscribe. USCIB’s annual report, studies from the United States Council Foundation and related publications are included with your paid subscription.

Our free electronic newsletter, “International Business Weekly,” provides regular updates on USCIB’s major activities and priorities. Click here to view a sample issue. Click here to subscribe.

We welcome outside submissions and inquiries regarding our publications – send them to news@uscib.org.

We welcome advertising in International Business magazine — special discounted rates for USCIB member organizations! Contact Kira Yevtukhova (kyevtukhova@uscib.org) for more information.

 

USCIB Voices Concerns With China’s WTO Commitments

As part of the annual request by the U.S. Trade Representative for comments on China’s compliance with World Trade Organization (WTO) commitments and notice of public hearing, USCIB submitted comments on September 21 reflecting USCIB members’ feedback and concerns. Since China acceded to the WTO in 2001, while progress has been made in some areas, there still remain significant WTO obligation compliance concerns.

USCIB’s submission highlights concerns that arise in selected horizontal areas that transcend industry sectors, including IT security measures, China’s antimonopoly law, intellectual property rights, market access, national treatment and non-discrimination, the regulatory environment, standards, state-owned enterprises, customs and trade facilitation, taxation, labor laws, certification, licensing, and testing barriers. USCIB’s submission also addresses issues related to specific industry sectors that face problems in China, including agricultural biotechnology, audiovisual, chemicals, electronic payment access, express delivery services, recoverable materials, software, and telecommunications.

“On China’s fulfillment of its WTO obligations, USCIB acknowledges the efforts China has made since joining the WTO in 2001 to meet its obligations under the terms of its accession agreement,” said USCIB Senior Director for Investment, Trade and Financial Services Eva Hampl, who leads USCIB’s work on China. “However, there still remain significant WTO obligation compliance concerns. USCIB notes that its member concerns extend beyond those discussed in this paper, including government procurement; until China officially accedes to and implements the WTO Government Procurement Agreement (GPA), government procurement program concerns remain among USCIB members.”

A public hearing to discuss these issues is scheduled to take place on October 3, 2018. Hampl will be testifying and highlighting the most urgent issues to U.S. industry.

Intellectual Property

Trends and Challenges Facing U.S. Business:

  • Intellectual property is one of the central public policy pillars for the rapidly changing knowledge-based 21st century economy
  • Intellectual property rights provide an increasingly critical legal and policy toolkit for spurring innovation, stimulating the investments needed to develop and market new innovations, creating jobs and disseminating technology and knowledge in socially beneficial ways
L-R: John Sandage (WIPO) and Paul Salmon (USPTO) at the October 18 launch of USCIB’s Intellectual Property and Innovation Committee

USCIB’s Response:

  • Promote strong global rules to protect U.S. intellectual property
  • Advocate for IP language in trade agreements that establishes a robust and effective intellectual property framework to promote innovation
  • Protect from disclosure commercially sensitive and propriety information and documents required by governments under law or regulation

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.

News Stories

USCIB Urges Reversal of 1-800 Contacts FTC Ruling - USCIB filed an amicus brief with regards to a 1-800 Contacts, Inc. case to highlight the challenges American businesses would face
US Business Launches ‘All In’ Initiative to Advance Business Engagement for Global Goals Implementation - USCIB partnered with the International Chamber of Commerce (ICC) and the International Organization of Employers (IOE) to convene the first

Read More

Press Releases

Colombia Gets Approval to Join the OECD (5/29/2018) - Colombia will join the Organization for Economic Cooperation and Development following an agreement among the 35-nation forum's member states ahead
USCIB Urges US and China to Avoid Trade War (3/22/2018) - The United States Council for International Business (USCIB), which represents America’s most successful global companies, responded to the Trump administration’s

Read More

Chair

Sharon Reiche
Corporate Counsel, Global Patents & Policy, Legal Division
Pfizer, Inc.

Staff

Mia Lauter
Policy & Program Assistant
212-703-5082 or mlauter@uscib.org

Staff

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

 

Education and Re-skilling in the Age of AI

By Andreas Schleicher, Shea Gopaul and Peter Robinson

Faced with major economic and social disruption, business and policy leaders are joining together to devise strategies and models to adapt the skills of the existing and future workforce to the opportunities offered by AI, automation, robotics and digitalization. McKinsey reports that 42% in the United States, 24% in Europe, and 31% in the rest of the world admit they currently lack a “good understanding of how automation and/or digitization will affect […] future skill needs.”

To prepare for looming technological upheavals, we need to understand the current educational and training landscape, its limitations, examine the latest research on the future skills needed and highlight some of the most effective employment and human resources strategies and educational models that can better position all stakeholders for the imminent change. We argue that by working together, especially through public-private partnerships, business and policy leaders can develop effective work-readiness and skill matching solutions, lifelong learning and re-skilling approaches to prepare both employers and employees for the changing world of work.

Teaching People to Learn

For some, AI and globalization can be liberating and exciting; but for those who are insufficiently prepared, they can mean uncertainty in employment, and a life without prospects. Our economies are shifting towards regional hubs of production, linked together by global chains of information and goods, but concentrated where comparative advantage can be built and renewed. This makes the distribution of knowledge and wealth crucial, and that is intimately tied to the distribution of educational opportunities.

The dilemma for education is that the kinds of things that are easy to teach have now become easy to digitize and automate (e.g. memorization vs. critical thinking). The modern world does not reward us just for what we know – Google knows everything – but for what we can do with what we know. So, the focus must shift to enabling people to become lifelong learners, which encourages constant learning, unlearning and relearning when the contexts change, and integrates both the practical world of work, with the theoretical world of learning. The future is about pairing computers with the cognitive, social and emotional skills of human beings.

These days, AI algorithms sort us into groups of like-minded individuals. They create virtual bubbles that amplify our views and leave us insulated from divergent perspectives. Tomorrow’s educational institutions will need to help students to think for themselves and join others, with empathy, in work and citizenship, and build character qualities such as perseverance, empathy or perspective taking, mindfulness, ethics, courage and leadership.

But to transform schooling at scale, we need not just a radical, alternative vision of what’s possible, but also smart strategies and effective institutions. Our current educational institutions were invented in the industrial age, when the prevailing norms were standardization and compliance, and when it was both effective and efficient to educate students in batches and to train teachers once for their entire working lives. The curricula that spelled out what students should learn were designed at the top of the pyramid, then translated into instructional material, teacher education and learning environments, often through multiple layers of government, until they reached, and were implemented by, individual teachers in the classroom.

This structure, in a fast-moving world, reacts to current needs, far too slowly. Today, we need to embrace AI also in ways that elevate the role of educators from imparting received knowledge towards working as co-creators of knowledge, as coaches, as mentors and as evaluators. AI can support new ways of teaching that focus on learners as active participants (e.g. chat bot, gaming applications).

Public/Private Coming-Together Around Skills

With 40% of employers reporting that they lack the talent required, it is surprising that at the same time global youth unemployment as stated by the International Labor Organization (ILO) is at 66 million. There is clearly a mismatch and the private sector has a critical role to play in resolving this skills-education deficit. Employer-driven education (i.e. apprenticeships, traineeships, internships, learnerships) are key in equipping the workforce with the soft and technical skills that employers require.

In countries such as Switzerland and Germany with robust apprenticeship programs and strong employer engagement, the rate of youth unemployment is very low. So, why aren’t there more apprenticeships and employer driven education? In many countries, the policies, regulations, registration process for setting up work-based learning programs are cumbersome and time-consuming for employers. The return on investment (ROI) is often unknown, e.g. in the U.S. for every $1 spent there is a return of $1.47. Lastly, educational institutions are not always linking to employers on curriculum design to reflect the world of work’s latest needs.

We have learnt at the Global Apprenticeship Network (GAN), a public-private partnership (PPP), that the convening of key stakeholders at the local city and country level ensures that education and legislation is better attuned to the world of work. Although private and public stakeholders do not always speak the same language, bringing them together increases their mutual understanding of the needs and changes that will assist in getting skills for business and jobs for youth.

Employers are uniquely positioned to define the skills required in the world of AI, robotics and automation as they are developing these technologies. Sadly, their importance as not only job creators, but also curricula designers, are often overlooked and they are often left out of the conversation and decision-making process. Work-based learning and notably apprenticeships connect education to work and we are seeing more and more employers creating innovative apprenticeships – part-time apprenticeships, pre-apprenticeships and a vast range of online tools. e.g. e-apprenticeships. In the last five years since GAN’s inception, it has become increasingly apparent that these models must be leveraged to ensure that not only youth, but also middle-aged and senior population groups adapt their skills and competencies to the fast evolving economic and technological context. In short, with the need for re-skilling and lifelong learning on an unprecedented scale, innovative apprenticeships can help get skills for business and jobs for all.

Below are two business-led initiatives that further illustrate the power of public-private partnership in skilling and reskilling. With the uncertainties linked to fast-paced technological change, these models show us how all actors – public and private- can join forces to ensure that skill development is continuously connected to present and future socioeconomic needs.

The first is IBM’s P-TECH school, a public-private partnership educational model that addresses postsecondary degree completion and career readiness by smoothing the transitions between high-school, college, and the professional world in science, technology, engineering, and mathematics (STEM). It recognizes that students need early and engaging experiences with the world of work, to make the academic work in high school and college meaningful and to fully prepare them with the workplace skills required by employers. The model pairs educational institutions with “employer partners” to act as mentors, develop curriculum, organize site visits, internships and other workplace learning opportunities.

The sustainability of the model depends on public authorities’ active involvement to develop appropriate frameworks, regulations, licensing, etc. Starting with one school in 2011 and engaging over 400 business partners, P-TECH expects to have 100 schools in 2018. IBM also ensures that its own workforce has continuous access to lifelong learning. Through the Think40 program IBM staff is asked to pursue at least 40 hours of personal and technical skills development through formal classes, self-paced learning, and online resources. The Think Academy platform allows IBM staff to access customized training which is constantly updated to IBM’s clients’ most current and pressing needs.

The second example is based on Randstad’s approach to “put humans first” in the age of digital transformation. Randstad supports clients to integrate versatility in their organizational culture, through a wide variety of re-skilling mechanisms, ranging from external & internal training, mentorship to job rotations and adult apprenticeships. Moreover, Randstad operating companies facilitate the integration and reintegration of vulnerable segments of society (e.g. youth, women, senior staff) with more than 100 social innovation programs mostly through public-private partnerships across the world. For example, in Spain, the Randstad Foundation works with more than 600 companies to ensure the reintegration of those at risk of exclusion from the labor market. In Italy and in the Netherlands, Randstad focuses on employees over 50 years of age, by organizing training in the latest technologies, advocacy, and networking opportunities (12 events to date) with employers.

This overview of initiatives, models and partnerships demonstrates that, through collaboration involving public and private entities, excellent strategies can be developed, not only to adapt to the upcoming technological change, but also to capitalize on the opportunities technology has to offer for the creation of better jobs and better lives.

Employers Are Optimistic in the Age of AI

We’re all being told that our jobs are doomed by robots and automation. But the OECD estimates that only nine percent of jobs across the 35 OECD nations are at high risk of being automated, although of course even nine percent can generate plenty of social difficulties. But there is an established track record throughout history of new technologies creating at least as many new jobs as they displace. Usually these new jobs demand higher skills and provide higher pay. The biggest threat is that our educational institutions won’t be able to keep pace with the new skills demands including the important skills that AI will not be able to replace.

For global employers, there is a steadily growing mismatch between what companies need in terms of skills and what the workforce is coming equipped to do. In an economy with a significant on-demand labor force, two main types of competencies will be needed: “technical” – or in other words, related to deep knowledge of a specific domain, whether welding or engineering, and “transversal,” which applies to all occupations. Those are described by the Center for Curriculum Redesign as creativity, critical thinking, communication and collaboration.

The Skills Employers Will Seek

So what skills will managers need as a result of likely structural changes, driven by AI and growth of the on-demand economy? A recent survey by Business at OECD (BIAC) surveyed 50 employers’ organizations worldwide. It showed that employers value not just the skills and character traits described above, but also character qualities as well, such as mindfulness, curiosity, courage, resilience, ethics, leadership and meta-learning (e.g. growth mindset and metacognition).

Furthermore, it is becoming increasingly clear that, in a constantly changing world, an individual’s versatility matters; so, the model developed by Jim Spohrer of IBM, of a “T-shaped” person, holds true: broad and deep individuals capable of adapting and going where the demand lies.

Employers’ organizations at the national and global levels are already developing innovative programs to help governments and educators anticipate the needs of the future workforce. Through robust action at the global level, including through the G-20 and the OECD, policy makers can also make sure that they are helping their populations succeed and thrive in a world of AI and other technological advances.

This overview highlights the strength of partnerships between the public and the private sector in preparing for the unpredictable. For such alliances to reach their full potential, on the one hand governments and policy makers must be open to the private sector’s input and on the other hand employers need to take a long term view of the ROI and accordingly commit resources in skilling and educating their current and future staff, notably through apprenticeship and work-readiness programs.

Andreas Schleicher heads the Directorate of Education and Skills at the Organization for Economic Cooperation and Development (OECD). Shea Gopaul is executive director and founder of the Global Apprenticeship Network (GAN). Peter Robinson is president and CEO of the United States Council for International Business (USCIB).

For more information, please contact:

OECD: news.contact@oecd.org
GAN: gueco@gan-global.org
USCIB: jhuneke@uscib.org

Colombia Gets Approval to Join the OECD

Colombia will join the Organization for Economic Cooperation and Development following an agreement among the 35-nation forum’s member states ahead of this week’s OECD ministerial.

Colombian President Juan Manuel Santos and OECD Secretary General Angel Gurría are expected to sign an accession agreement at the annual ministerial-level council meeting, which is scheduled for May 30, according to the OECD.

USCIB – which serves as the U.S. affiliate of Business at OECD, the representative private-sector voice in the OECD – issued the following statement:

“USCIB welcomes the progress Colombia has made over the past several years in the context of the accession process to the OECD. As the official voice representing U.S. business in this process, we acknowledge the steps taken by Colombia to meet the high standards of the OECD in various sectors. We look forward to continued progress and concrete actions being taken on outstanding issues, including on pharmaceuticals and trucking, where the current status does not yet rise to the level of like-mindedness with other OECD countries on open trade and investment. As the OECD considers inviting additional countries to join, USCIB will continue to advocate on behalf of U.S. business to ensure that all OECD countries continue to meet high standards.”

Hampl Testifies Regarding Proposed China Tariffs

 Following the Trump administration’s proposed Section 301 tariffs on Chinese goods, USCIB Senior Director for Investment, Trade and Financial Services Eva Hampl testified before the Section 301 Committee, chaired by USTR on May 16 regarding the proposal. Hampl’s testimony reflected USCIB member concerns about potential consequences the proposed tariffs will have on sectors vital to the U.S. economy. Her testimony was drawn from comments USCIB sent earlier this month to the U.S. Trade Representative Robert Lighthizer. Hampl was joined by over 100 other business representatives to share specific concerns regarding the proposed tariffs.

“We believe that the imposition of tariffs will not achieve the important goal of changing China’s behavior in the space of emerging technologies and intellectual property rights,” said Hampl in her testimony. “China’s threat of retaliation further exacerbates uncertainties caused by this proposed action. Rather than create more opportunities for U.S. business, sweeping tariffs will stifle U.S. agriculture, goods, and services exports and raise costs for businesses and consumers.

Hampl emphasized the need for a “holistic structure” to address the aforementioned issues. Speaking on behalf of USCIB, Hampl applauded the Trump administration for looking at alternative approaches, such as initiating a WTO dispute by requesting consultations with China.

“It is important for the administration to address these issues with a broad view, working collectively with U.S. industry, Congress, and our trading partners, to adequately address China’s unfair trade practices and get China to be WTO compliant,” noted Hampl.

The proposed tariffs pose a unique challenge to industrial inputs, which represent over 80 percent of the proposed list. Tariffs on industrial goods are especially problematic because they represent not just a tax on U.S. consumers but a tax on U.S. manufacturers and workers, and on the products they export. Tariffs on aerospace, machinery and IT parts and other advanced technologies can undermine the most competitive sectors of American manufacturing, driving up production costs in the U.S., impacting U.S. manufacturing employment, and making U.S. manufacturers less competitive against global rivals.

“Tariffs on industrial parts imported into the U.S. could have the unintended consequence of prompting manufacturers to move final production outside of the U.S.,” warned Hampl. “To see how U.S. companies will be affected by the tariffs, it is important to look to how the supply chain functions. China is the second largest economy and the largest manufacturing economy in the world. We cannot ignore that China may have some unique capabilities, at the product level, that U.S. businesses need to tap into in order to remain globally competitive. For many products or inputs, there is no feasible alternative to procuring from China. We urge the Administration to use this process to ensure that its actions do not inadvertently harm some of the most competitive sectors of the U.S. economy, and the hundreds of thousands of American jobs that depend on them.”

In addition to the testimony, USCIB also co-sponsored a reception last week for Hill staff centered around the China 301 hearing, as well as NAFTA, celebrating Great American Jobs Supported by Trade. Representatives from U.S. government, companies, and associations, spent the evening discussing various important developments in the trade space.

USCIB Warns of Potential Harms to the US Following China Tariffs

In light of the Trump administration’s proposed Section 301 tariffs on Chinese goods, USCIB sent comments last week to the U.S. Trade Representative Robert Lighthizer expressing concern about the potential unintended negative consequences the proposed tariffs will have on sectors vital to the U.S. economy and jobs. With $587.6 billion in total goods trade in 2016, China has become the United States’ largest goods trading partner. China was also the third-largest export goods market in 2016 for the U.S., while U.S. foreign direct investment in China was $13.8 billion in 2016, with the ICT sector alone encompassing $4.34 billion.

“China can be a challenging market for U.S. companies to navigate. The ongoing intellectual property rights violations, forced technology transfer requirements, and state interventions harm U.S. companies, workers, consumers, and competitiveness,” stated Eva Hampl, who leads USCIB work on China-related issues.

Made in China 2025 is considered by many an indication that China plans on further advancing in developing their high-tech industries, such as robotics, advanced information technology, aviation, and new energy vehicles, with the eventual goal of global dominance in those industries through uncompetitive means such as subsidies.

“While this unfair advantage to Chinese companies in the high-tech industry space is a legitimate threat to U.S. leadership in innovation, continued engagement in the Chinese market is also very important for U.S. companies in terms of their ability to be globally competitive,” emphasized Hampl. “USCIB members are very concerned that these proposed tariffs will stifle the U.S. economy, and not achieve the important goal of changing China’s behavior in the space of emerging technologies and intellectual property rights. China’s threat of retaliation further exacerbates uncertainties caused by this proposed action. Rather than create more opportunities for U.S. business, sweeping tariffs will stifle U.S. agriculture, goods, and services exports and raise costs for businesses and consumers.”

The comments urge the administration to use this public comment period to listen to USCIB members and other U.S. stakeholders who explain how they will be directly affected by the proposed tariffs.

“It is critical that the administration exclude from its tariffs particularly those products that cannot feasibly be replaced by non-Chinese sources, where the harm of potential tariffs would fall more on U.S. businesses, workers, and exporters than on Chinese entities,” said Hampl. “Hurting American exporters cannot be the outcome of a process designed to level the playing field in China.”

USCIB has also signed on to a broader coalition of trade associations to echo these and other business concerns. Additionally, USCIB is co-sponsoring a reception later this week for Hill staff centered around the China 301 hearing, as well as NAFTA, celebrating Great American Jobs Supported by Trade. Finally, USCIB will also testify this week as part of the China 301 hearing.

USCIB’s Geneva Delegation Supports Innovation at World IP Day

As part of USCIB’s Geneva Week, USCIB staff and members had the opportunity to participate in the annual World Intellectual Property Day on April 26 in Geneva to celebrate the role that intellectual property rights play in encouraging innovation and creativity. This year’s campaign celebrated women who are driving societal change and shaping “our common future” through innovation and creativity.

The USCIB delegation attended a reception sponsored by Mexico, Indonesia, South Korea, Turkey and Australia (MIKTA), an informal partnership created in 2013 on the sidelines of the United Nations General Assembly to support effective global governance.

“USCIB appreciated the opportunity to attend World IP Day and to support the importance causes of promoting intellectual property rights and bridging the gender divide in innovation,” noted Mike Michener, who leads USCIB’s Committee on Innovation and Intellectual Property. “USCIB’s goal within our recently revamped Intellectual Property and Innovation Committee is to improve our members’ global competitiveness as well as identify international initiatives to secure IP rights and promote innovation. World IP Day is an exemplary forum to help endorse our long-standing beliefs that intellectual property protection and innovation go hand-in-hand.”