USCIB Welcomes Trilateral Update of NAFTA

Published on October 1, 2018

Washington, D.C., October 1, 2018 – The United States Council for International Business (USCIB), which represents America’s most successful global companies, issued the following statement on the Trump administration’s announcement of a United States-Mexico-Canada Agreement (USMCA), modernizing the North American Free Trade Agreement (NAFTA):

“We welcome the conclusion of a trilateral agreement between the United States, Mexico and Canada on the modernization of NAFTA, which is a longtime priority for our members and American business more broadly.

“The North American market is very important to the success of our members, and keeping the region economically integrated is vital for U.S. companies to remain competitive in the global market.

“The USMCA contains numerous provisions important to our members, recognizing the many changes in the North American and global economies since the original agreement was signed a quarter-century ago. We look forward to reviewing the details of the agreement to ensure that it addresses our key concerns and priorities in lowering barriers to cross-border trade and investment.”

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 information is available at www.uscib.org.

Contact:
Jonathan Huneke, VP Communications
+1 212.703.5043 or jhuneke@uscib.org

USCIB Submits Comments on China 301 Tariffs

Published on September 7, 2018

Tariffs of 10-25 percent are contemplated

Negative impact could exceed actual harm from Chinese trade abuses

On September 6, USCIB submitted extensive comments on the Trump administration’s proposed $200 billion list of tariffs on imports from China, following up on earlier submissions in response to the quickly escalating trade conflict between the United States and China.

“USCIB and its members continue to be very concerned about the potential unintended consequences these proposed tariffs of 10 or 25 percent on $200 billion worth of Chinese imports are likely to have, affecting many sectors vital to the U.S. economy and jobs,” the USCIB statement said. “Particularly if [the U.S. Trade Representative’s office] imposes 25 percent tariffs on this broad list of products, these tariffs will impact consumers and will severely impact U.S. competitiveness. The negative impact of such tariffs to U.S. consumers and industry appears disproportionate to the intended purpose.”

The statement said that, while China’s forced technology transfer requirements and other abusive practices harm U.S. competitiveness, the administration’s “sweeping tariffs endanger the U.S. economy in similar ways.” USCIB said its 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.”

The statement also recommended a number of changes to the list of tariffs being proposed by the administration. USCIB also signed on to a broader industry statement appealing to the Trump administration not to proceed with the proposed tariffs, saying the effort would likely backfire against U.S. businesses and workers.

In August, USCIB Senior Director for Investment, Trade and Financial Services Eva Hampl provided testimony to the 301 Committee chaired by the U.S. Trade Representative’s office, expressing concern about the proposed tariffs’ potential unintended consequences.

USCIB Expresses Concern Over China 301 Tariffs

Published on June 18, 2018

In light of last week’s release of two lists of China 301 tariffs by the Trump administration, USCIB Senior Director for Trade, Financial Services and Investment Eva Hampl expressed concern about the impact the China 301 tariffs will have on the U.S. economy and jobs. “In our submission to the U.S. government we highlighted a number of products of particular concern to our members, for which tariffs would have a significant effect on U.S. production and revenue. Unfortunately it appears that only a handful of consumer products were taken off the list. We are also reviewing the new list of products, and welcome the opportunity to provide input as appropriate. We are, however, troubled by the planned investment restrictions to be imposed on Chinese investments in technology later this month, where stakeholder input is not taken into account. Given the significant impact investment restrictions could have on U.S. companies and jobs, this move by the Administration is problematic.”

The first list of China 301 tariffs was a reduced version of the 1,300 tariff lines USCIB commented on in May. This list of tariffs on about $34 billion of Chinese products is set to go into effect on July 6. The second list, covering about $16 billion of Chinese goods, are products that were suggested to be added. That list will be up for a comment period, with a public hearing to be held in late July. The Federal Register Notice is not yet officially out.

“China is ready to retaliate,” warned Hampl. China has apparently reduced their initial $50 billion list to $34 billion to match what is currently the U.S. tariff list – the Ministry of Finance has apparently posted the list.

Hampl was also quoted earlier today in Politico. Full article is available here, subscription required.

Hampl Testifies Regarding Proposed China Tariffs

Published on May 18, 2018

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 Urges Senate to Confirm Trump Administration Nominees

Published on August 4, 2017

USCIB is among approximately 90 American business and industry associations to have signed a letter to Senate Majority Leader Mitch McConnell and Senate Minority Leader Charles Schumer, urging the Senate to take expeditious steps to ensure the timely confirmation of qualified pending nominees to administration positions.

“The slow pace of confirmations is depriving agencies across the government of critical leadership and in the case of independent agencies, the quorum necessary to conduct critical business,” reads the letter.

Additionally, it notes: “The breakdown of the confirmation process results in a breakdown in the efficient and effective functioning of government and ultimately to a drag on the economy. Workers are sidelined as projects await permits from agencies that lack the quorum necessary to issue the permit. Businesses are left waiting for important administrative decisions that simply cannot be made in the absence of Senate-confirmed officials.”

To date, among President Donald Trump’s 283 executive and judicial nominations, only 67 have been confirmed. Of those 67, only 13 were confirmed by voice vote or unanimous consent, while 37 (55%) were confirmed only after going through the cloture process. By way of comparison, at approximately the same point in President Obama’s first term, the Senate had confirmed 206 nominees, 182 by voice vote or unanimous consent.

The full letter, along with the list of signatories, can be found here.

USCIB Statement on Impact of Brexit Vote on ATA Carnet

Published on June 27, 2016

Last week’s UK vote to leave the European Union has spurred many questions regarding the country’s future trade and treaty commitments, including the ATA Carnet system for temporary imports. At this time, the UK remains a member of the EU, and the process for leaving the bloc has not yet begun. We have no indication of any changes affecting the use of ATA Carnets in the UK, or in the EU as a whole, for the foreseeable future.

The earliest Brexit could take effect is two years after a treaty mechanism has been triggered. The latter part of 2018 is considered the most likely date at the moment.

“In the meantime members of the chain can continue to issue ATA Carnets for the UK as part of the EU in exactly the same way as they do now. The UK will continue issuing exactly as present as well.” said Peter Bishop, deputy chief executive of the London Chamber of Commerce and Industry.

As the U.S. National Guaranteeing Association for the global ATA Carnet system, USCIB is monitoring the situation closely, working with ICC and affected parties including our ATA Carnet Service Providers. We will provide updates as new information becomes available.

USCIB Shares its Trade Facilitation Priorities on US/Canada Beyond the Border Action Plan

Published on March 23, 2012

The USCIB Customs and Trade Facilitation Committee recently laid out its priorities on the trade facilitation aspects of the United States – Canada Beyond the Border Action Plan, released by President Obama and Prime Minister Stephen Harper on December 7, 2011. Click here for USCIB’s statement.

Work had been underway on the Action Plan since the February 4, 2011 announcement by President Obama and Prime Minister Harper on the United States-Canada joint declaration, Beyond the Border: A Shared Vision for Perimeter Security and Economic Competitiveness. The Action Plan lays out a shared approach to border security and economic competitiveness in which the United States and Canada work together to address the safety and security of our shared border, while expediting lawful trade and travel. The trade facilitation provisions establish steps, which upon implementation, will reduce costs and regulatory burdens, significantly enhance the flow of goods across the border, and facilitate trade and travel.

USCIB has shared its trade facilitation priorities with leaders of both the U.S. and Canadian teams leading the implementation efforts, and USCIB President and CEO Peter Robinson, met with Canadian Minister of International Trade, Ed Fast to convey USCIB’s support for the Action Plan and to emphasize interest, in particular, in Canada raising its de minimis level. USCIB applauds the effort to establish a long-term partnership between the United States and Canada, built upon a perimeter approach to security and economic competitiveness, and will continue to meet with officials on both sides of the border to engage in the implementation of the Action Plan.

U.S.-Canada Beyond the Border Action Plan

USCIB Trade Facilitation Priorities

More on USCIB’s Customs and Trade Facilitation Committee

Global Business Seeks Coordinated Action to Curb Maritime Piracy

Published on July 8, 2011

Against the backdrop of ever-more aggressive forays by Somali pirates against shipping in the Indian Ocean, USCIB President and CEO Peter M. Robinson recently wrote to Secretary of State Hillary Clinton and other top administration officials involved in national security to draw attention to a global Call for Action on Piracy, issued by our affiliate the International Chamber of Commerce at the May 25-27 International Transport Forum in Leipzig, Germany.

ICC calls on governments to take immediate action to improve the rules of engagement given to the navies present in the Indian Ocean, to refocus the efforts of the United Nations and other international bodies to ensure that required institutions in south-central Somalia are established to maintain economic and social standards, and to hold pirates accountable for their conduct.

In the past year, there has been an escalation in both violence and the number of attacks on ships and crew in the area off the coast of Somalia. According to ICC’s International Maritime Bureau, there were 219 attacks off Somalia in 2010, in which 49 vessels were hijacked and 1,016 crew members taken hostage.

Despite measures taken by the UN Security Council and the presence of naval units in the area, pirates continue to strike with increasing violence. In addition to placing individuals and crews in danger, piracy is disrupting international trade and shipping. In 2010, the One Earth Foundation estimated the economic cost of piracy on the supply chain to be in the range of $7-12 billion.

In the call to action, ICC “urges governments to recognize that piracy, in addition to its effect on the safety of seafarers, has an important financial impact on global trade and shipping, and furthermore poses increased threat on the stability and security of energy supply lines not only for major industrial nations.”

The ICC Call for Action on Piracy has been endorsed by over 20 CEOs from key shipping and trading companies around the world.

ICC Call to Action on Piracy

More on USCIB’s Customs and Trade Facilitation Committee

USCIB Urges Closer Cooperation on Air Cargo Security

Published on July 8, 2011

In June, USCIB urged the heads of U.S. Customs and Border Protection and the Transportation Security Administration to work more closely to improve air cargo security, including taking other countries’ rules and regulations into account when implementing new air cargo security rules.

In a letter to Customs chief Alan Bersin and TSA Administrator John Pistole, USCIB President and CEO Peter M. Robinson commended the two agencies for working with the private sector to implement protocols and rules of engagement for the air cargo security program, and expressed hope that heightened interagency cooperation would continue to ensure a streamlined program.

On the international aspect of new security rules, Mr. Robinson wrote: “Although CBP recently suggested increasing the number of countries in the pilot program from 28 to 42 countries, … we urge that any increase be done with significant private sector consultation to ensure the proper consideration of issues such as timing and availability of information, volume of shipments for each country, as well as data privacy rules and regulatory hurdles in each country. USCIB urges CBP and TSA to assess the regulatory environment in other countries before increasing the scope of this pilot program.”

USCIB letter on air cargo security

More on USCIB’s Customs and Trade Facilitation Committee