USCIB Decries Further Escalation of China Tariffs

“American companies and consumers are already feeling the impact of earlier tariffs. The administration’s latest moves will only make matters worse.”

Washington, D.C., September 17, 2018 – Responding to the Trump administration’s imposition of tariffs on an additional $200 billion of Chinese imports, the United States Council for International Business (USCIB), which represents America’s most competitive global companies, issued the following statement:

“American business reiterates its call for the U.S. and China to take immediate steps to de-escalate their trade conflict, which risks upending financial markets and doing lasting damage to the U.S. and global economies.

“As we have stated on numerous occasions, including the recent U.S. public hearings on these tariffs, American companies and consumers are already feeling the impact of earlier tariffs, in the form of rising costs and operational disruptions. The administration’s latest moves will only make matters worse.

“While we support efforts to compel China to change its discriminatory trade practices negatively affecting U.S. companies, these new tariffs are unlikely to achieve such a goal, as we fully expect the Chinese government to retaliate, with American consumers and small businesses bearing a significant portion of the cost.

“We continue to believe that a better solution is for the United States and its trading partners to apply concerted pressure to address China’s unfair trading behavior, especially via the WTO, in ways that do not place the primary burden on America’s consumers, workers, farmers and companies.”

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
jhuneke@uscib.org, +1 212.703.5043

USCIB Submits Comments on China 301 Tariffs

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.

Hampl Urges USTR to Remove Products from China Tariff List

Hampl expressed concern about consequences proposed tariffs are likely to have on sectors vital to the U.S. economy and jobs
The Administration is also considering increasing tariffs to 25 percent.

 

With a new set of proposed tariffs on $200 billion worth of Chinese imports, USCIB has been actively advocating on the effect these tariffs will have on the competitiveness of U.S. companies. USCIB Senior Director for Investment, Trade and Financial Services Eva Hampl provided testimony to the 301 Committee chaired by the Office of the U.S. Trade Representative (USTR) on August 20, expressing concern about the potential unintended consequences these proposed tariffs of 10 percent are likely to have, affecting many sectors vital to the U.S. economy and jobs. The Administration is also considering increasing tariffs to 25 percent.

“If the USTR follows through on the President’s request to increase the level of the proposed tariffs to 25 percent on this broad list of products, the impact to U.S. competitiveness will be severe,” warned Hampl in her testimony. “USCIB strongly urges the Administration to consider the significant negative consequences to U.S. companies and American jobs before taking further action.”

Products that USCIB requested to be removed from the list of goods affected include parts in U.S.-made wind turbines, smart technology, goods using Bluetooth technology, standalone desktop computers, bicycles, patio furniture, electric lamps, travel goods, handbags, and many others. USCIB will submit written comments to USTR with further details on all the products that should be excluded.

“Many of the goods included in this new list are innovative products where the U.S. is an industry leader,” added Hampl. “Particularly for goods that are at the cutting edge of innovation and the future global economy, it is imperative for U.S. companies to remain highly competitive and innovative. Sweeping non-discriminatory tariffs will be very damaging, particularly if they are raised to 25 percent.”

With yet a new set of tariffs on China going into effect on August 23 on $16 billion worth of Chinese imports, USCIB has also been actively advocating that the U.S. Trade Representative’s (USTR) Section 301 exclusion process will remedy some of the potential negative consequences.

 

USCIB Gathers Stakeholders to Discuss E-Commerce Framework

On July 31 and August 1, USCIB teamed up with the U.S. Chamber of Commerce to host the second in a series of meetings tied to e-commerce and the work being undertaken by the World Customs Organization (WCO). Dubbed “Industry Days,” these meetings included robust participation from both private sector and public sector representatives from multiple U.S. government agencies aimed at continuing the established dialogue on the WCO’s E-Commerce Framework of Standards (FoS).  Last week’s meetings were conducted in a small group fashion, which were stakeholder specific (i.e., carriers, customs brokers, e-payment, marketplaces and vendors).

Per the WCO, “The Framework of Standards is intended for Customs administrations wishing to develop legislative and operational frameworks for cross-border e-commerce.” In June, the WCO Council endorsed the draft FoS that included an introduction, 15 Standards and related introductions, as well as a U.S. tabled Resolution. In addition, the Council approved a one-year extension of the E-Commerce Working Group as well as a draft Work Plan noting the need for flexibility with respect to timelines and adherence. The next meeting of the WCO’s E-Commerce Working Group will take place in October.

Currently, the U.S. government and other WCO Member administrations are working to develop and  provide inputs on such intersessional topics as Definitions, Work Plan, and Data Elements. These “Industry Day” meetings are critical to the development of the U.S. government – one government – position, and provide the opportunity for private sector stakeholders to advance general and specific comments and concerns regarding aspects of the FoS, topic specific questions (e.g., Flow Charts, Data and Data Privacy, risks, etc.,) as well as overall views related to e-commerce.

“The purpose of these meetings was to bring together relevant intermediaries to discuss and gather perspectives in efforts to assist in USG policy and position development,” said Megan Giblin who leads USCIB’s work on customs and trade facilitation.  “Overall the meetings were successful and brought together USG agencies including: Department of Homeland Security, Customs and Border Protection, Office of the U.S. Trade Representative, U.S. Department of Treasury, Department of Energy, Department of State, U.S. Postal Service, Federal Trade Commission as well as many private sector stakeholders including many who are new to the WCO E-Commerce Framework of Standards.”

USCIB Expresses Concern Over China 301 Tariffs

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.

USCIB Meets with Interagency Group on Customs E-commerce

USCIB and the U.S. Chamber partnered on an industry day with the U.S. Government interagency group on the  World Customs Organization (WCO) Cross-Board E-Commerce Framework of Standards (FoS) on June 14 in Washington DC, in preparation for upcoming WCO E-Commerce Working Group meetings, as well as WCO Policy Commission and Council meetings that will take place over the next few weeks in Brussels, Belgium. The event included robust representation from the U.S. government, more than 10 agencies, including Department of Homeland Security, Customs and Border Protection, Departments of Commerce and State, the Federal Trade Commission and the National Security Council.

The meeting provided a unique opportunity for industry to express views into the U.S.G. position development process on cross-border e-commerce at the WCO.  There have been several versions of a draft Cross-Border E-Commerce FoS since early 2018. Several WCO Members have raised concerns with aspects of the draft FoS (e.g., content, scope, transparency, and pace of the process). As a result, at the April WCO meetings, the E-Commerce Working Group convened and made significant changes to the draft FoS.  In June, the WCO Policy Commission and Council will consider the 15 standards of the WCO E-Commerce FoS, respective introductions, and Resolution as well as a request for extension to Working Group. This week, the U.S. delegation is participating in E-Commerce Working Group meetings, where they will advance its positions on the definitions, data elements, and Technical Specifications.

“Following this productive exchange, we look forward to continuing our partnership on this matter and look forward to future, productive, engagement with the interagency group,” said USCIB Director for Customs and Trade Facilitation Megan Giblin.

 

Washington Update, April – May 2018

Highlighting Key Activities, April – May 2018

During the months of April and May 2018, USCIB Staff met with EU Finance Ministries on draft digital tax directives, participated in a roundtable with OECD Trade staff on digital trade, testified before USTR’s Section 301 Committee, advocated for business as Colombia acceded to the OECD, spoke on NAFTA at the NGA North American Summit, filed comments to the ITC on foreign measures affecting B2B and B2C products and services, met with Kenneth J F Kennedy, DHS, on Forced Labor issues, briefed Tim Skud, Treasury, and Mark McKenzie, DHS, on E-Commerce at the WCO, met with Hill staff Hill on CFIUS reform, and much more. Below are summaries of these and other highlights from the activities of USCIB in Washington, D.C. over the last two months. If you have any questions or comments, or want more information on a specific topic, please contact any of the staff members listed at the end of this brief.

Table of Contents:

  1. Trade and Investment – Opening Global Markets for Trade and Investment
  2. ICT Policy – Promoting Sound Policies for New Technologies
  3. Tax – Advancing Tax Policies that Promote U.S. Competitiveness
  4. Customs and Trade Facilitation – Reducing Barriers and Costs from Customs and Border Control Practices
  5. China – Supporting Policies and Relationships that Enhance U.S.-China Business
  6. Corporate Responsibility and Labor Affairs – Shaping the Development of CR Principles and Increasing Awareness of Business’s Positive Social Contributions
  7. Creating Global Legal Practices for an Open and Competitive Business Environment
  8. Membership
  9. Upcoming Events
  10. Staff List

Trade and Investment – Opening Global Markets for Trade and Investment

Mulligan Shares USCIB Views at B20/BIAC/OECD/ICC Meetings:  Several meetings took place in Paris the week of May 28 at which Rob Mulligan, USCIB Senior Vice President Policy and Government Affairs, presented member views, starting with the B20 Trade and Investment Taskforce.  He made the point that the trade paper language related to digital trade, especially on IP, should be consistent with language developed by the Digital taskforce.  Since several companies working in the Digital taskforce had developed compromise language on IP, he urged the Trade taskforce to also use that language.  The BIAC General Assembly followed the B20 meeting where Rick Johnston, Citi, was approved for another term on the BIAC Board and they announced the new Secretary General, Russell Mills.  In a meeting with Ken Ash, Director of the OECD Trade Directorate, Rob discussed upcoming OECD work on tariffs, market opening, trade facilitation, non-tariff barriers and services reform.  At the meeting of the ICC Trade and Investment Commission on May 30, Rob provided input on proposed ICC work on unilateral protection measures, the impact of extraterritorial application of national laws, and the intersection of trade and climate change.

USCIB Kicks Off BIAC Roundtable with OECD Trade Staff on Digital Trade:  As part of the BIAC Trade Committee meeting on April 23, 2018, a roundtable discussion was organized with Ken Ash, Director of the OECD Trade Directorate, and his staff on digital trade.  Rob Mulligan started the discussion by highlighting the importance of cross border data flows to business and the negative impact of data localization requirements. He stressed the need for regulators to take approaches that do not end up restricting trade, stifling innovation, and undercutting economic growth.  The OECD staff noted some of the issues they are trying to resolve in their work on digital trade including: the challenges for business in distinguishing personal data from non-personal data; the costs of technological solutions such as encryption; differences of views based on cultural beliefs; and, is there a role for multilateral approaches.  BIAC will continue this dialogue as the OECD trade staff develops its digital trade papers.

USCIB/BIAC Urge OECD Trade Committee to Include Business Priorities in Future Workplan:  Rob Mulligan represented USCIB at the BIAC and OECD Trade Committees in Paris from April 23-25.  The BIAC meeting focused on providing input into the discussions the OECD Trade Committee was having on it Program of Work and Budget (PWB) for 2019-2020.  BIAC supported plans to work on digital trade, customs facilitation, international regulatory cooperation, trade in services and trade and environment.  We noted that the PWB should continue to include work on localization requirements and state-owned enterprises that are still key areas of concern for our members. BIAC also arranged for a lunch meeting with Deputy Secretary General Kiviniemi, which provided a chance for members to hear her thinking on the current global trade environment.  They also organized a dinner with Ana Novik, Head of the OECD Investment Division, John Drummond, Head of the OECD Services Trade Division, and Dermot Nolan, Permanent Representative of Ireland to the OECD.  This provided an opportunity to discuss how they will structure the planned joint committee meeting in October between the trade and investment committees and for us to share suggestions.

USCIB Pushes for Open Investment Climate in CFIUS process: USCIB has been an active advocate on investment issues in the context of the CFIUS legislation on the Hill. On April 19, 2018, Shaun Donnelly, Vice President, Investment and Financial Services, and Eva Hampl, Senior Director, Investment, Trade and Financial Services, met with Hill staff to discuss the Cornyn bill. On April 30, 2018, Donnelly and Hampl joined a group of associations in a meeting with Treasury and Commerce officials for an update on what at the time was the most recent draft of the legislation. USCIB hosted a member meeting on May 8, 2018, to discuss ongoing developments and next steps. Finally, on May 21, 2018, USCIB signed on to a multi-association letter to the House and Senate in support of the most recent updates of the legislation, which importantly no longer included provisions to expand CFIUS jurisdiction to cover outbound investment.

USCIB Pens Multi-Association Letter to Treasury on Investment 301: On April 26, 2018, USCIB, together with the Coalition of Services Industries (CSI) and the National Foreign Trade Council (NFTC) hosted a strategy meeting to share intelligence and discuss potential action items on investment issues related to the Administration’s Special 301 investigation. On May 18, 2018, USCIB, together with five other associations, sent a letter to Secretary Mnuchin asking for a more open and consultative process regarding the Administration’s investment restrictions contemplated under Section 301, pursuant to the March 22 presidential memorandum. The letter was sent in anticipation of a report coming out from Treasury no later than May 21, 2018, on the progress in developing measures to address concerns about investment in the U.S directed or facilitated by China in industries or technologies deemed important to the U.S.

Hampl Discusses NAFTA in Politico Roundtable: On April 18, 2018, Eva Hampl, participated in a roundtable conversation hosted by Politico, to discuss NAFTA. The off-the-record discussion addressed what the renegotiated chapters looked like at that time, the major sticking points that remain, and what potential solutions may be. USCIB has been actively advocating for members on NAFTA, traveling to rounds in Canada and Mexico earlier this year, and participating in the Coalition here in D.C., including advocating on the Hill. In support of an open conversation on trade, USCIB co-sponsored a reception on May 17 for Hill staff centered around the China 301 hearing that took place that week, as well as the ongoing NAFTA negotiations, 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 Advocates for Business as Colombia Concludes OECD Accession Process in May: Following the conclusion of an accession process that started in 2013, Colombia joined the OECD this month. On May 30, Colombian President Juan Manuel Santos and OECD Secretary General Angel Gurria signed an accession agreement at the annual ministerial-level council meeting. USCIB, which serves as the U.S. affiliate of Business at OECD, the representative private-sector voice in the OECD, has advocated on behalf of U.S. business throughout this process. Leading up to this conclusion, USCIB joined a meeting with other associations and companies at the White House to discuss Colombia, as well as with USTR, following the most recent meeting of the OECD Trade Committee in April. USCIB welcomes the progress Colombia has made over the past several years in the context of the accession process to the OECD, and 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.

Donnelly Defends Business Positions at UNCITRAL Review of ISDS Procedures: USCIB Vice President Shaun Donnelly was the leading advocate for business positions and priorities at a weeklong review of Investor-State Dispute Settlement (ISDS) provisions to enforce international investment agreements held at the UN in New York April 23-27 under the auspices of “Working Group 3” of the UN Commission on International Trade Law (UNCITRAL). ISDS and investment arbitration are under assault from a coalition of developing countries, NGOs, some international organizations and the European Union. The EU is aggressively pushing its “Multilateral Investment Court” proposal as the solution to alleged problems in the long-established ISDS system to afford an independent body to address serious breaches of investment and rule or law commitments by host government. We and many other business groups find the EU proposal deeply flawed and biased against business. Shaun and a handful of invited business and arbitrator representatives spoke up forcefully to provide much-needed real world perspectives of investors. But the UNCITRAL group is a government-dominated process with limited scope for business and other stakeholders. The next week-long semi-annual session of the WG will be in

USCIB at the National Governors Association North American Summit:  Shaun Donnelly represented USCIB at the special North American Summit of the National Governors Association (NGA) in Scottsdale, Arizona May 4-6. U.S. state Governors met with their North American counterparts – Mexican governors and Canadian provincial Premiers – to review common North American challenges and opportunities. Not surprisingly, NAFTA was a primary focus for discussion among the governors and with USCIB and other business stakeholders participating in the session. Several USCIB member companies also participated. Governors from the three nations had remarkably similar pro-business views on NAFTA – keep it strong, do no harm, and update/strengthen it on new issues based on global best practices. Governors seem to “get” NAFTA more than some Washington politicians.

ICT Policy – Promoting Sound Policies for New Technologies

USCIB Files Comments to the U.S. International Trade Commission on Foreign Measures Affecting B2B and B2C Products & Services: Members of USCIB’s Digital Trade Working Group contributed their expertise to USCIB’s April 5, 2018, submission in response to the ITC Federal Register Notice calling for comments on Global Digital Trade 2: The Business-to-Business Market, Key Foreign Trade Restrictions and U.S. Competitiveness (#332-562) and Global Digital Trade 3: The Business-to-Consumer Market, Key Foreign Trade Restrictions and U.S. Competitiveness (#332-563). Evidence of trade barriers that members have been collecting for USCIB’s annual National Trade Estimate/Section 1377 submission to the U.S. Trade Representative’s office (USTR) served as the foundation for the ITC comments, which profiled practices in Brazil, China, European Union, India, Indonesia, and Russia.

USCIB Joins Forces with USITUA to Host Roundtable Discussion Featuring ITU Director Candidate: USCIB and the U.S. International Telecommunication Union Association (USITUA) jointly organized a special roundtable discussion on April 5, 2018, in Washington, D.C. to hear a brief of Doreen Bogdan-Martin’s candidacy for director of the International Telecommunication Union (ITU) Telecommunication Development Bureau (BDT). The Roundtable attracted nearly 40 participants from both trade associations, as well as from the U.S. Government and the Washington, DC diplomatic community. The U.S. Government will formally deposit Bogdan-Martin’s candidature prior to the ITU Plenipotentiary (PP-18), which will take place in Dubai in October 29-November 16. Senior U.S. Government officials indicated that one of Washington’s leading goals at the PP-18 is to secure Bogdan-Martin’s election to this post, highlighting her impressive track record with the ITU.

UNCTAD E-Commerce Week Provides Opportunity for USCIB Members to Highlight the Importance of Digital Technologies for Sustainable Development: UNCTAD’s E-Commerce Week, April 16-20, in Geneva, Switzerland highlighted progress by emerging economies in developing digital ecosystems to support electronic commerce and digital trade and, in turn, drive sustainable economic development. More than 1,000 participants from government, business, civil society, and international organizations convened for the fourth edition of this conference under the theme “Development Dimensions for Digital Platforms.” USCIB Vice President for ICT Policy Barbara Wanner was on the ground for the first half of the week and observed enthusiasm for the potential of digital platforms to create commercial and economic benefits. USCIB members from Mastercard, Facebook, and King & Spalding elaborated on effective ways of leveraging digital technologies to address various developmental needs as both workshop and plenary speakers.

USCIB Members Help Develop 2018 Policy Priorities for ICC Digital Economy Commission: The ICC Digital Economy Commission (ICC-DEC) held its first meeting of 2018 on April 19-20 at the ICC’s Paris headquarters. USCIB Vice President for ICT Policy Barbara Wanner contributed to discussions about existing and new policy work as did members from Apple, CenturyLink, Computer & Communications Industry Association, Facebook, Google, Intel, KPMG International, and Microsoft. Existing work that will be taken forward include draft policy papers on Artificial Intelligence (AI) and Cybersecurity as well as advocacy efforts, supported by the ICC policy paper, “ICT, Policy and Sustainable Economic Development,” at the UN High Level Policy Forum in July 2018. New work includes: (1) an ICC response to the European Union e-privacy regulation, which was created to complement the EU General Data Protection Regulation (GDPR); (2) the European Commission’s proposal for cross-border data flows in trade and investment agreements; and (3) a paper that will explore the ICC’s potential role in promoting and preparing self-regulation in the digital economy. The ICC’s ITU Working Group met on the sidelines of the Commission meeting and decided key areas of priority for ICC advocacy in anticipation of the ITU PP-18.

USCIB Members Help to Advance OECD’s Going Digital Project: Barbara Wanner and representatives from AT&T, CCIA, eBay, 21st Century Fox, Mastercard, Microsoft, and Verizon participated in the May 14-18 meetings of the OECD’s Committee on Digital Economy Policy (CDEP) and its Working Parties. The week-long meetings focused on advancing the ambitious horizontal Going Digital project and rolling out plans for a Global Forum on Digital Security for Prosperity. The meeting also featured a special Roundtable discussion on privacy interoperability. USCIB members, participating under the auspices of Business at OECD (BIAC), made numerous interventions focused on elements of the Going Digital Project, such as projects on Artificial Intelligence, Online Platforms, and E-Commerce. The OECD will present an Interim report at the Ministerial Council Meeting, May 28-June 1. The final Going Digital Report will be unveiled at a special Gala event, March 11-12, 2019, in Paris.

Tax – Advancing Tax Policies that Promote U.S. Competitiveness

USCIB Meets with EU Finance Ministries on the EU Draft Directives on Digital Services Tax and Significant Digital Presence: Bill Sample, Chair of the USCIB Taxation Committee and Carol Doran Klein, USCIB VP and International Tax Counsel, along with USCIB member companies participated in a series of meetings with Finance Ministries in European countries concerning the draft directives. The meetings were intended to provide information concerning the potential impact of the draft directives on businesses – both the companies that are targeted by the directives and others that might be “collateral damage” — and discern the countries positions on the proposed directives. USCIB pointed out that the draft directives are deeply flawed and evidence a misunderstanding of the nature of digital economy business models. For example, companies are paid for clicks, rather than displays of advertisements, intermediaries may have very low margins such that a 3% tax would exceed the total profit on the transaction, and companies do not sell data. While many countries expressed concerns with the draft directives and the EU requires unanimity to proceed, it is important that USCIB continue to make its case about the potential damage from these directives. Many countries expressed a willingness to work within the OECD to achieve a long-term solution.

USCIB Joins BIAC Tax Committee Meeting Discussing Digital Taxation: USCIB members attended the BIAC Tax Committee meeting on May 4, 2018 in Paris. The Committee meeting included presentations on the taxation of the digital economy (which is likely to be the main tax topic at the OECD, the EU and the UN this year (and perhaps beyond)); the multilateral instrument, which will enter into force on July 1, 2018 and add new countries and agreements as more countries ratify; MAP and dispute resolution; transfer pricing topics; and U.S. tax reform.

Customs and Trade Facilitation – Reducing Barriers and Costs from Customs and Border Control Practices

USCIB Customs Committee Members Meet with ICE on Forced Labor: On Thursday, May 31, 2018, USCIB Director of Customs and Trade Facilitation, Megan Giblin, along with Jerry Cook, Hanesbrands and USCIB Customs Committee Chair, and several other Committee members met with Kenneth J F Kennedy, Senior Policy Advisor Forced Labor Programs, Homeland Security Investigations, U.S. Immigration and Customs Enforcement, U.S. Department of Homeland Security to discuss ICE updates on Forced Labor.

USCIB Discusses E-commerce with DHS Trade Policy Staff: The USCIB Customs and Trade Facilitation Committee met on May 22, 2018, where Mark McKenzie of DHS Trade Policy joined the Committee to discuss the HSI ICE E-Commerce strategy, provide views on WCO E-Commerce work given DHS’ leadership role in leading the interagency process, and discuss the joint USCIB – U.S. Chamber Industry day on June 14, 2018. The event will give members the opportunity to provide inputs directly into the U.S. interagency group on the issue of the WCO E-Commerce Cross-Border Framework of Standards (FoS).

USCIB Hosts Discussion with U.S. Government Partners on Waste: Since the early 2000s there has been at the WCO, at the request of the Basel Convention, an effort to create “waste” breakouts for a variety of product categories. Under the process to update the legal text of the 2022 Harmonized System Nomenclature, the WCO has been discussing breakouts related to mechanical and electronic or electrical waste.  On May 17, 2018, the USCIB Customs Committee hosted Ms. Beth Elkins of USITC and lead U.S. delegate to the WCO HS Review Subcommittee to discuss current Basel Convention efforts in preparation for June RSC meetings.

Giblin Supports USCIB Member Companies and the USG at WCO E-Commerce Working Group Meetings: From April 9-12, 2018, Megan Giblin, participated in the WCO E-Commerce Working Group meetings held at World Customs Organization Headquarters in Brussels.  During the meetings, Giblin supported both USG interagency partners (i.e., DHS Trade Policy, CBP, and USTR) and USCIB member companies. In preparation for the meeting, the USCIB Customs Committee submitted formal comments on the Draft Framework of Standards. Following the meeting, the USCIB Customs Committee submitted formal comments on 1) the agreed Standards; 2) Related introductions; 3) additional text that was rapidly reviewed and included in the go-forward draft; 4) Resolution; and 5) Draft Workplan tied to the request to extend the tenure of the Working Group past June 2018.

Giblin Meets with Colombian Trade and Customs Attaches: On March 23, 2018, while in Brussels attending international classification meetings at the World Customs Organization, Megan Giblin, met with the Trade and Customs attaches at the Colombian Embassy to discuss key member issues including, but not limited to: Customs Valuation, Consultation with Industry, WTO TFA, and more. The USCIB Customs Committee is working on a Customs and Trade Facilitation Barriers paper, which will be used to continue to address member concerns in the Customs space.

USCIB Customs Committee Meets with Department of Treasury to Discuss E-Commerce at WCO: On March 27, 2018, Megan Giblin, Jerry Cook, and several members of the Customs Committee met with Tim Skud, Deputy Assistant Secretary (Tax, Trade and Tariff Policy) and others of Department of Treasury representatives to discuss USCIB submissions on WCO E-Commerce Draft FoS, specific concerns related to Draft FoS section on Revenue collection, and expressed views in preparation for April in-person meetings on the Framework.

China – Supporting Policies and Relationships that Enhance U.S.-China Business

USCIB Submits Comments and Testifies on 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 submitted to the U.S. Trade Representative Robert Lighthizer. USCIB also signed on to a multi-association letter on April 11 to the Hill, expressing concern about the tariffs to Chairman Brady and Ranking Member Neal. In addition, USCIB also signed on to a multi-association letter to Amb. Lighthizer in response to the request for comments.

Corporate Responsibility and Labor Affairs – Shaping the Development of CR Principles and Increasing Awareness of Business’s Positive Social Contributions

USCIB Compares Views/Priorities with State on Responsible Business Conduct in Leadup to OECD Forum in June: USCIB VP for Labor Affairs and Corporate Responsibility Gabriella Rigg Herzog, accompanied by USCIB Investment staffers Shaun Donnelly and Eva Hampl, met with the State Department senior staffers who lead U.S. Government work on Responsible Business Conduct (RBC) at the OECD on May 1, 2018. The OECD’s annual Global Forum on RBC will be held in Paris June 20 and 21 and will include a focus on RBC in the agricultural sector. The OECD’s work on RBC is centered in the Working Party on Responsible Business Conduct, under the general auspices of the OECD Investment Committee. Gabriella will again be attending the June Forum meeting. Unfortunately, some NGO groups and even a few OECD member country delegations seem to view OECD RBC work as simply an open season to criticize business. But our ongoing cooperation with the U.S. Government team continues to yield areas for serious, fact-based work.

Competition – Creating Global Legal Practices for an Open and Competitive Business Environment

USCIB Competition Committee Discusses Recent Supreme Court Case at Spring Meeting: The USCIB Competition Committee held its spring meeting on April 9, 2018. Following welcoming remarks from new Chair Dina Kallay, Ericsson, and Vice-Chair Jennifer Patterson, Arnold & Porter, members received updates on OECD Competition Meetings and BIAC Developments from John Taladay, Baker Botts and Chair of the BIAC Competition Committee, as well as updates on ICC Competition Commission Developments from Jennifer Patterson and Cal Goldman. Brinkley Tappan and William Rinner, Counsels to the Assistant Attorney General at the U.S. Department of Justice, provided an update on the activities in their office. The remarks included an extensive discussion of the Vitamin C antitrust legislation that was heard by the Supreme Court on April 24, 2018. The remainder of the agenda included an update on Brazil Antitrust Developments from Ademir Pereira Jr., focusing on the Volkswagen case, and an update on the International Competition Network (ICN) from Paul O’Brien, Counsel for International Antitrust, U.S. Federal Trade Commission (FTC).

Membership

  • Membership Meetings: The USCIB membership department and policy staff met with representatives from member companies Biotechnology Innovation Organization and Intel to develop our understanding of their policy priorities for the next year and beyond, and to see how USCIB can better serve their policy needs.
  • New Members: USCIB has recently welcomed Winston & Strawn LLP as a new member.

 

Upcoming Events:

  • 2018 OECD International Tax Conference, Washington, D.C. – June 4-5
  • USCIB Digital Trade Working Group Meeting, Washington, D.C. – June 12
  • WCO E-Commerce Framework Industry Day Meeting, Washington, D.C. – June 14
  • OECD Responsible Business Conduct Annual Forum – Paris, June 18-22
  • USCIB Trade and Investment Committee Meeting, Washington, D.C. – June 19
  • USCIB ICT Policy Committee Meeting, Washington, D.C. – June 20
  • ICANN 62, Panama City, Panama – June 25-28
  • Economic and Social Council (ECOSOC) High-Level Policy Forum & Ministerial, UN-HQ, New York – July 16-19
  • APEC Senior Officials Meeting (SOM 3), Port Moresby, Papua New Guinea – August 4-20
  • Engaging Business Forum on Business and Human Rights, Atlanta, Georgia – September 13-14

USCIB Policy and Program Staff

Rob Mulligan
Senior Vice President, Policy and Government Affairs
202-682-7375 or rmulligan@uscib.org

Erin Breitenbucher
Senior Policy and Program Associate and Office Manager, Washington
202-682-7465 or ebreitenbucher@uscib.org

Norine Kennedy
Vice President, Strategic International Engagement, Energy and Environment
212-703-5052 or nkennedy@uscib.org

Shaun Donnelly
Vice President, Investment and Financial Services
202-682-1221 or sdonnelly@uscib.org

Elizabeth Kim
Policy and Program Assistant, New York
212-703-5095 or ekim@uscib.org

Megan Giblin
Director, Customs and Trade Facilitation
202-371-9235 or mgiblin@uscib.org

Carol Doran Klein
Vice President and International Tax Counsel
202-682-7376 or cdklein@uscib.org

Ronnie Goldberg
Senior Counsel
212-703-5057 or rgoldberg@uscib.org

Mia Lauter
Policy and Program Assistant, New York
212-703-5082 or mlauter@uscib.org

Eva Hampl
Director, Investment, Trade and Financial Services
202-682-0051 or ehampl@uscib.org

Mike Michener
Vice President, Product Policy and Innovation
202-617-3159 or mmichener

Alison Hoiem
Senior Director, Member Services
202-682-1291 or ahoiem@uscib.org

Chris Olsen
Policy and Program Assistant, Washington
202-617-3156 or colsen@uscib.org

Gabriella Rigg Herzog
Vice President, Corporate Responsibility and Labor Affairs
212-703-5056 or gherzog@uscib.org

Barbara Wanner
Vice President, ICT Policy
202-617-3155 or bwanner@uscib.org

Jonathan Huneke
Vice President, Communications and Public Affairs
212-703-5043 or jhuneke@uscib.org

Kira Yevtukhova
Communications Manager
202-617-3160 or kyevtukhova@uscib.org

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Colombia Officially Joins OECD, Becomes 37th Member

OECD countries have officially agreed, on May 25, to invite Colombia to become a member of the organization. An Accession Agreement was signed by Colombian President Juan Manuel Santos and OECD Secretary General Angel Gurria on May 30 during the OECD Ministerial meetings in Paris. Colombia is the 37th country and the third member country from the LAC (Latin America and the Caribbean) region to join the OECD.

“Through the OECD accession process Colombia has made impressive strides in, for example, reforming its justice system and reducing informality in the labor market,” said Gurria. “The accession process has been instrumental in the design and implementation of new national policies, such as on water and chemicals management. Colombia took important steps to improve its governance of state-owned enterprises, including removal of ministers from the boards. To comply with the OECD Anti-Bribery Convention Colombia significantly modified its corporate liability regime. The list of reforms goes on.” Gurria’s full remarks at the signing ceremony can be found here.

Colombia was invited to begin the accession process in 2013. Over the past five years, 23 OECD Committees conducted an in-depth review of Colombia’s legislation, politics and practices, to align them with OECD standards. The final two Committees where reforms were required were the Labor Committee and the Trade Committee. The Labor Committee concluded their process during their recent meeting in March. The Trade Committee concluded their April meeting with a draft formal opinion, which was finalized several weeks later, just ahead of the Ministerial. Rob Mulligan, USCIB senior vice President for policy and government affairs, was in Paris last week for the Ministerial.

“USCIB has been actively involved in providing input into Colombia’s accession process via Business at OECD (BIAC), the official business voice at the OECD,” said Mulligan. “The main affected sectors throughout that process were pharmaceuticals, distilled spirits, and trucking. Many issues were resolved before accession, and we look forward to continued progress and concrete actions being taken on outstanding issues.” View USCIB’s official statement here.

“Moving forward, USCIB will play an active role in providing U.S. business input to the OECD on any upcoming accession processes,” added Mulligan. The countries that have expressed interest are Argentina, Brazil, Peru, Romania, Croatia, and Bulgaria. At this time, no new process has commenced.

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.”

Qatar to Join Global “Merchandise Passport” System

The World ATA Carnet Council meeting in Xian, China

Earlier this month, Qatar officially joined the ATA Carnet system, which enables the temporary duty-free, tax-free importation of various types of goods in over 80 countries and customs territories around the world. The Carnet system is overseen by the International Chamber of Commerce and the World Customs Organization. USCIB serves as the U.S. national guaranteeing association for the system.

The official announcement was made by Sheikha Tamadar Al Thani, director of international relations and chamber affairs at Qatar Chamber and ICC-Qatar, during her participation in a World ATA Carnet Council (WATAC) meeting organized by ICC’s World Chambers Federation on May 9 in Xi’an, China. The ATA Carnet system is expected to be implemented in Qatar as of August 1, 2018, but the country will only accept Carnets issued for Exhibitions and Fairs. (Many countries and territories also accept them for Product Samples and for Professional Equipment.)

During her address to the WATAC meeting, which was attended by USCIB President and CEO Peter M. Robinson, Al Thani noted that Qatar’s formal accession to the Carnet system came as a result of lengthy negotiations conducted during the previous sessions with WATAC leadership and council members. She said the ATA Carnet plays an important role towards advancing the cause of free trade as a mechanism of trade facilitation.

Al Thani further noted that world trade is facing momentous challenges nowadays, with protectionist policies on the rise again and the State of Qatar’s accession to the Council is a testimony to its adherence to free trade, and to its belief in the importance of the free movement of goods and services around the world.

The ATA Carnet is the global gold standard for temporary admissions under the auspices of the World Customs Organization. ATA Carnets are international tools of trade facilitation, which serve as a temporary export-import documentation. The ATA System is in place in over 85 countries and territories, and provides duty-free and tax-free imports on goods that will be re-exported within 12 months.

Please visit the Qatar ATA Carnet page for more info.