USCIB, Business Groups Urge Administration to Prioritize US-China Deal

USCIB, along with dozens of U.S. business and industry groups, sent a letter to USTR Robert Lighthizer, U.S. Secretary of Treasury Steven Mnuchin and Vice Premier of China’s State Council Liu He strongly supporting the U.S.-China Phase One Trade Agreement noting its “significant achievement in ongoing efforts to advance a more balanced and mutually beneficial U.S.-China economic and commercial relationship.”

The letter also stated that successful implementation of Phase One will be critical to subsequent negotiation of a Phase Two Agreement.

The organizations noted that continuing fulfillment of the terms of the Agreement particularly with regards to Intellectual Property, removal of market access barriers and tariffs are critical. With regards to market access barriers, the letter focused on U.S. fruits, grains, and nearly all U.S. beef products, the expansion of its list of U.S. facilities eligible to export beef, pork, poultry, seafood, dairy and infant formula to China, as well as the adoption of new domestic standards for dairy powder that will allow imports from the United States.

“Meeting the global public health challenges from COVID-19 and restoring growth to the global economy will depend in part on both countries working together to fully implement the mutually beneficial outcomes of the Phase One Agreement,” the letter stated. “Thorough and timely implementation of Phase One commitments is also the most direct and achievable path to removal of tariffs—and to avoid application of new ones—on both sides, which the U.S. business community strongly supports.”

USCIB Strengthens Trade Policy Advocacy Through New Coalition: Alliance for Trade Enforcement

USCIB joined a new coalition, the Alliance for Trade Enforcement, which includes nearly a dozen other industry groups and trade associations. The coalition’s goal is to support U.S. policymakers in their efforts to enforce U.S. trade agreements and ensure that America’s trading partners end unfair trade practices. The coalition is an expansion of the Alliance for Fair Trade with India.

According to the coalition’s media release, the U.S. Trade Representative’s (USTR) recent Special 301 Report, which “identifies trading partners that do not adequately or effectively protect and enforce intellectual property rights or otherwise deny market access to U.S. innovators and creators,” can serve as an initial blueprint for the group. This year, USTR identified thirty-three countries for these types of violations. Many of these countries are repeat offenders.

“We look forward to further advancing USCIB’s trade policy priorities through this new coalition,” said USCIB Senior Director for Investment, Trade and Financial Services.

To view the media release, please click here.

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USCIB Urges US Participation in WTO’s Procurement Agreement

USCIB joined over twenty industry associations in signing a letter to high-level government officials emphasizing the critical importance of continued U.S. participation in the World Trade Organization (WTO) Government Procurement Agreement (GPA). The letter was sent to United States Trade Representative Robert E. Lighthizer, Secretary of the Treasurer Steven T. Mnuchin, Secretary of Commerce Wilbur Ross, and National Economic Council Director Lawrence Kudlow.

The letter argues that the GPA provides benefits to the U.S. economy, businesses and workforce by empowering the United States to negotiate reciprocal terms under which GPA signatory countries open their government procurement markets to U.S. companies and commit to transparency and procedural protections that support the rule of law.

“The GPA is the only part of the WTO system that provides binding guarantees of the right to sell to foreign governments (which are not covered by other WTO disciplines). The GPA is also unique among WTO plurilateral agreements in that only the forty-seven current country signatories to the agreement benefit from and can enforce its binding commitments,” the letter stated.

Additionally, the letter warns that if the U.S. withdrew from the GPA, it could no longer negotiate the terms under which China could join the GPA. As a result, other GPA signatory countries would be less likely to demand comprehensive access to Chinese government procurement markets.

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. 

Hampl Provides Testimony at Interagency Committee on China’s WTO Compliance

Following USCIB’s annual submission to the U.S. Trade Representative regarding China’s compliance with its WTO commitments, USCIB Senior Director for Trade, Investment and Financial Services Eva Hampl provided testimony before the interagency Trade Policy Staff Committee, which was chaired by USTR and included officials from the Departments of Commerce, Treasury, State, Agriculture and Labor.

“USCIB members continue to have serious concerns with a host of policies and practices maintained by China that undermine the ability of U.S. businesses to operate, including unfair and discriminatory governmental practices,” stated Hampl. “The tariff actions under Section 301 have not to date resolved the underlying issues [of forced technology transfer and intellectual property theft] identified by the United States. Accordingly, high-level bilateral dialogue between the United States and China continues to be of the utmost importance. We also urge 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 Cooperation and Development (OECD), to work toward improved commercial relations.”

The questions from the panel addressed the problematic enforcement of the anti-monopoly law, the myriad of certification and testing requirements, the current cybersecurity regime, market access (China’s filtering and blocking of websites and online services), the dysfunctional approval process for new agricultural biotechnology products, and recent developments on  China’s labor laws.

USCIB submitted extensive written comments last month. The submission is public and can also be found on www.regulations.gov under Docket Number USTR-2019-0010.

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 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 Backs Coalition Response to Trump’s Call for More Tariffs on Chinese Goods

USCIB supported a Tariffs Hurt the Heartland coalition statement, responding to President Trump‘s announcement to impose a ten percent tariff on an additional $300 billion in Chinese goods. Tariffs Hurt the Heartland is a nationwide campaign against tariffs supported by over 150 of America’s largest trade organizations representing retail, tech, manufacturing and agriculture.

The statement noted: “The administration is doubling down on a failing strategy. Nobody wins in a trade war, and raising tariffs further on American businesses and consumers will only result in slower economic growth, more farm bankruptcies, fewer jobs and higher prices. These new tariffs will target the products American families buy every day, ranging from shoes and apparel to toys and electronics.”

The statement also emphasized that “it’s time for the administration to come up with a real strategy, put a stop to harmful tariffs and finally deliver the trade deal Americans were promised.”

USCIB had previously supported the coalition during a Fly-In campaign against tariffs, combining the efforts of Farmers for Free Trade and Americans for Free Trade, of which USCIB is a member, and also did a submission and testimony on the 300 billion dollars on tariffs.