USCIB Leads in Preparations for Upcoming China Meetings at OECD

USCIB members and staff played leading roles in the April 23 China Expert Group’s preliminary meeting to preview and discuss Business at OECD (BIAC) presentations that will be made at the kick-off session of the OECD’s Informal Reflection Group on China in May. During the preliminary meeting, BIAC experts, including USCIB Senior Advisor Shaun Donnelly and Dell’s Eva Hampl (formerly USCIB and now a Vice Chair of BIAC’s China group), advanced key points that BIAC will emphasize including on state-owned enterprises (SOEs), investment, innovation and digitalization, and climate neutrality.

With regards to SOEs, Donnelly and others emphasized the importance of including provisions on SOEs in future investment and trade agreements, updating World Trade Organization (WTO) rules on subsidies, drawing China into multilateral consensus on export and development finance, as well as engaging China to reduce excess capacity in steel and rejoin the Global Forum on Steel Excess Capacity. The investment dialogue between China and the OECD should also be intensified and made more substantive, rather than political, according to Donnelly. Updating the investment policy review of China is also critical since the last review was done in 2008.

On innovation and digitalization, Donnelly noted the need to review efforts to onshore production in the name of supply chain resiliency, to study global value chains to ensure that policies are driven by OECD-generated facts and not politics and protectionism, to foster cooperation on IT and Artificial Intelligence (AI) information-sharing and standards’ development, engaging China on implementation and dissemination of AI principles and policies, as well as monitoring and acting on China’s development of virtual currency along with its impact on major currencies.

“Engaging China on harmonizing carbon pricing and emission trading schemes, pushing China more toward sustainable investment policies at home and abroad (such as their Belt and Road projects use of fossil fuels) and continuing to press for mitigation and strong environmental commitments from China is key,” said Donnelly.

Donnelly also led a discussion urging BIAC, as a business forum, to press the OECD and its member governments for substantive reform and results in its engagement with China and to worry less about protocol and diplomatic formalities.

“It was great to have USCIB and American business actively involved in BIAC’s preparations for this important China strategy session at the OECD,” added Donnelly.  “With a new Secretary General coming to OECD in June, a new U.S. Administration looking to play a leadership role at the OECD, and steadily growing concerns around the world about some of China’s policies and practices, it’s vital that Business at OECD and its American members focus on these issues of how the OECD can play a useful role with China.”

Donnelly added: “Eva Hampl from Dell did a great job leading Friday’s discussion on the innovation and digitalization issues.  She and I look forward to our roles as BIAC lead speakers in the session with the OECD China group.  It was also great to see several USCIB members logging on for the BIAC discussion, confirming that China issues, broadly defined, remain important priorities for USCIB and its broad, cross-sectoral membership.”

If members have issues, questions or suggestions related to this BIAC and OECD effort on China, please contact Allice Slayton Clark (asclark@uscib.org).

USCIB Welcomes Senate’s Unanimous Confirmation Vote on USTR Tai

Photo: Bill O’Leary/The Washington Post/Bloomberg via Getty Images

Washington, D.C., March 18, 2021—The United States Council for International Business (USCIB) salutes the Senate for its unanimous vote on March 17 to confirm Katherine Tai as the next U.S. Trade Representative (USTR), believing she is a solid choice for this important cabinet-level position, bringing outstanding experience as an attorney-advisor and litigator at USTR, as Chief Trade Counsel for the House of Representatives Ways and Means Trade Subcommittee, and as an attorney in the private sector.

America’s economic growth, jobs and competitiveness, our future, depends to a considerable degree on how well we are able to engage and compete in today’s, and tomorrow’s, global economy. USTR Tai will lead America’s efforts on some very important trade and investment issues including our leadership in the World Trade Organization (WTO), updated and improved rules on digital trade, reducing foreign trade and investment barriers hurting American companies and workers, and effectively enforcing our existing network of trade agreements. Tai’s experience with Congress, as well as her expertise in trade law, the WTO and in Asia and China will serve her, and our country, very well in ​this crucial position.

“USCIB knows and respects Ms.Tai and has worked well with her in her important role at the Ways and Means Committee,” said USCIB President and CEO Peter Robinson. “As an organization committed to open trade and investment flows, as well as high standards of corporate responsibility, all of us at USCIB and our member companies look forward to working with Ms.Tai to advance America’s economic interests and our shared values.”

Citi’s Senior Vice President and Managing Director of Global Government Affairs Rick Johnston, who also c​hairs the USCIB Trade and Investment Committee added, “Ms. Tai is the timely choice for this critical role as USTR at a very important an​d challenging time. Winning unanimous support from the Senate is a rare tribute to her abilities, her experience, and the respect she has earned from all quarters. The right leader at the right time for a very important job.”

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. As the U.S. affiliate of the International Chamber of Commerce, the International Organization of Employers and Business at OECD (BIAC), USCIB provides business views to policy makers and regulatory authorities worldwide and works to facilitate international trade and investment. More at www.uscib.org.

USCIB Announces 2021 Priority Issues for Asia-Pacific Economic Cooperation (APEC)

Washington D.C., January 5, 2020 — The United States Council for International Business (USCIB), which represents many of America’s leading global companies, appreciates and welcomes the committed partnerships that the Asia-Pacific Economic Cooperation (APEC) has established with the private sector to address the many economic, trade and regulatory opportunities available to foster greater integration between APEC’s twenty-one member economies. Each year, USCIB issues a statement outlining priorities and recommendations that USCIB and its members would like to see advanced in that particular APEC year; we are pleased to announce and make available our 2021 APEC Priority Issues and Recommendations paper:

USCIB commends the leadership of Malaysia in 2020, particularly under the challenging circumstances of adjusting to virtual meetings in the face of an unprecedented global pandemic. Our members see the New Zealand host year as an important opportunity to continue essential work in APEC working groups and to set topics for major outcomes and deliverables. USCIB members are eager to learn more about key initiatives for New Zealand during its host year and how business can help achieve these initiatives. Further, USCIB members are looking forward to Thailand’s host year in 2022. We stand ready to provide relevant inputs into the establishment of goals and objectives. The policy priorities of USCIB reflect our longstanding and overarching objectives of promoting open markets, competitiveness and innovation, sustainable development, and corporate responsibility. The priorities and recommendations detailed in this document are practical recommendations that can be taken to address some of the challenges for governments and businesses in the APEC region.

There remain ongoing global business concerns that the U.S. government and APEC Business Advisory Council (ABAC) members should consider as they identify priorities for the upcoming year. USCIB members have identified key issues that are detailed in this paper. We view this APEC Priority Issues and Recommendations policy paper as a “living document”, which is updated on an annual basis at the time of the CEO Summit, and as necessary following Senior Official Meetings throughout the year. The priorities in this statement are not exhaustive, in many cases they are “living issues”, and we will continue to work with our members on emerging and developing issues. We would be pleased to address any questions and discuss any of these recommendations in greater detail.

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 Encourages Biden Environmental Nominees to Engage on Multilateral Issues

New York, N.Y., December 18, 2020: The United States Council for International Business (USCIB) issued a statement today by its President and CEO, Peter Robinson, commending the nominations of Michael Regan, for Administrator of the U.S. Environmental Protection Agency (US EPA) and Brenda Mallory to lead the White House Council on Environmental Quality (CEQ).

“USCIB members are strongly committed to advancing environmental protection through innovation and investment in the global marketplace. We believe that EPA and CEQ play crucial roles in shaping U.S. international environmental policy, not just in connection with climate change but in other priority areas, such as pursuing nature-based solutions, circular economies and responsible chemicals risk management. 2021 will be a year of important decision-points in the multilateral system, looking ahead to the fifth UN Environment Assembly and eventual thirty-year anniversary of the Rio Earth Summit; vigorous U.S. engagement in those deliberations will be vital for economic prosperity and environmental stewardship at home and abroad.

“USCIB sees opportunities to pursue synergies across international and domestic actions for enhanced environmental benefits, and advance the UN Sustainable Development Goals (SDGs), delivering a recovery that improves environmental quality, creates jobs and stimulates public-private partnerships. Since 1992, USCIB has represented U.S. business in support of the UN Framework Convention on Climate Change (UNFCCC) and its Paris Agreement. In addition, USCIB has been the voice of American business at the UN Environment Programme (UNEP), the Strategic Approach to International Chemicals Management (SAICM), and other multilateral environmental deliberations and forums. USCIB is fully committed to international cooperation and to partnership with our government to advance American private sector-driven economic prosperity and environmental stewardship at home and abroad. In our view, it is critical to continue to focus on and champion substantive engagement of U.S. business across the UN system on key environmental topics.

“USCIB and its members are ready to assist the incoming Administration to develop and implement market-oriented environmental solutions and measures, working with the international community and in consultation with the American private sector. As the U.S. affiliate of Business at OECD (BIAC), the International Chamber of Commerce (ICC) and the International Organization of Employers (IOE), and with its own standing at the UNFCCC, UNEP and at the UN Economic and Social Council (ECOSOC), USCIB is uniquely placed to scale and amplify these opportunities across the UN system, and in the OECD and the WTO.”

About USCIB: USCIB promotes open markets, competitiveness and innovation, sustainable development and corporate responsibility, supported by international engagement and prudent regulation. Its members include U.S.-based global companies and professional services firms with operations in every region of the world. As the U.S. affiliate of leading international business organizations and as the sole U.S. business group with standing in ECOSOC, USCIB provides business views to policy makers and regulatory authorities worldwide, and works to facilitate international trade and investment. More at www.uscib.org.

Policy Contact: VP for Strategic International Engagement, Energy and Environment Norine Kennedy (nkennedy@uscib.org)

USCIB to Present Proposal at APEC on Fighting IP Crime, Illicit Trade

During this week’s virtual Asia Pacific Economic Cooperation (APEC) meeting of the Intellectual Property Rights Expert Group (IPEG) as part of the third Senior Officials Meeting (SOM) this year, USCIB will be presenting a proposal on October 7 on fighting intellectual property crime and illicit trade in counterfeit and pirated goods. This presentation will be given by USCIB Anti-Illicit Trade Committee (AITC) Chair David Luna of Luna Global Networks and Vice Chair Fernando Peña of DHL.

The proposal presented by Luna and Peña builds on previous groundwork in APEC on fighting illicit trade in various working groups, such as IPEG, the APEC Business Advisory Council, the Sub-Committee on Customs Procedures, and others, as well as scaling current efforts to strengthen international cooperation across economies, sectors and communities to fight illicit trade, including in established Free Trade Zones in the APEC region.

Luna and Pena will also discuss how COVID-19 further mutated criminality and IP infringement across online and e-commerce marketplaces, including through illicit trade, that is putting the health and safety of APEC citizens and communities at risk. Examples of products affected include medicines, personal protective equipment (PPE), medical supplies and fast-moving consumer goods such as food, hand-sanitizers and disinfectants.

“This has resulted in increased trade in illicit goods throughout APEC economies, which has sapped governments of vital tax revenues, inhibiting funding for pandemic response and economic recovery,” added USCIB Director for Customs and Trade Facilitation Megan Giblin. “We must continue to promote APEC’s leadership through public-private partnerships in APEC and across the Asia Pacific region and globally fight illicit trade.”

USTR Must Urge Canada and Mexico to Honor USMCA Commitments

USCIB joined the Alliance for Trade Enforcement (AFTE) to send a letter to U.S. Trade Representative Robert E. Lighthizer to ensure that Canada and Mexico abide by the commitment they have made in the United States-Mexico-Canada Agreement (USMCA) and treat U.S. interests fairly.

The letter stated: “We applaud the sentiments that you expressed in your recent congressional testimony about your willingness to seek dispute settlement on issues of importance to U.S. manufacturing, agriculture and service sectors where those countries fall short, including patent, trademark and market access issues impacting innovative industries from both new and longstanding policies and regulations in Mexico and Canada.”

The group noted support for Lighthizer’s attention to the full enforcement of IP commitments made in the USMCA which protects U.S. IP-intensive industries, such as patent linkages and provisions to protect against abuses of the regulatory review exception, as well as broader market access barrier to innovative products, namely the lack of approvals for imported agricultural biotech products. AFTE argued that Mexico’s failure to approve such products threatens both trade with Mexico and U.S. farmers’ access to important technologies; meanwhile, Canada’s Patented Medicine Prices Review Board continues to develop and implement unfair pricing and reimbursement regulatory schemes that don’t account for the cost of research and development of innovative treatments, which ultimately reduces incentives for American scientists and manufactures to research and develop new treatments.

AFTE however applauded the important leap forward made by the USMCA’s digital trade provisions, which include key commitments and significant improvements over prior agreements.

AFTE is a coalition of trade associations and business groups dedicated to ending foreign unfair trade practices that harm American businesses and workers and to ensuring that America’s trading partners are held accountable for the commitments that they have made to treat American goods and services fairly. AFTE members represent companies – both large and small – from across the economy, including the manufacturing, agriculture, and service sectors. AFTE supports actions and policies that encourage U.S. trading partners to open their markets, reduce barriers to trade, and provide effective protection and enforcement of intellectual property (IP) rights.

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 Statement on USMCA Entry Into Force

Washington, D.C., July 1, 2020 – The U.S. Council for International Business (USCIB), which represents many of America’s leading global companies, welcomes today’s entry into force of the United States-Mexico-Canada Agreement (USMCA) trade agreement, preserving and deepening the economic ties in North America and bolstering the global competitiveness of our companies and workers. The implementation of this agreement comes at a critical time of restoring certainty to U.S. industry in the North American market, as the global market is working toward recovery from the impacts of the current crisis.

The three partner countries must continue to work together to ensure effective implementation of this agreement, so that the benefits of the agreement in its updated and modernized provisions including on digital trade and customs can be realized. Over 12 million American jobs depend on trade with Canada and Mexico, and continuing to build on this economic relationship is important for U.S. industry for future economic growth. USCIB looks forward to a seamless transition to the new agreement.

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 Opposes New IP Protocols at International Telecommunication Union

USCIB submitted recommendations on June 7 regarding industry priorities to the U.S. Department of Commerce’s National Telecommunications and Information Administration’s (NTIA) that advance international communications and information policies at the International Telecommunication Union (ITU), as well as on matters that will be addressed at the 2020 World Telecommunication Standardization Assembly (WTSA-20). Most notably, USCIB’s comments expressed deep concern over the proposed “New IP protocol system,” which would be composed of a suite of protocols following a top-down design.

“We urge the U.S. government to strongly oppose this proposal,” said USCIB Vice President for ICT Policy Barbara Wanner. “The proposal would deploy new protocols that would not be compatible with standards already used by billions of devices, so it would result in fragmentation of the current operation of the internet. In fact, creation of a new protocol and network architecture in the ITU is likely to create the same kinds of interoperability problems that the proposals ostensibly want to avoid.”

Another concern is that use cases envisioned by said protocol are not sufficiently developed to be standardized by the ITU. The proposals aimed at developing a new IP protocol system should remain within the realm of research where they can see experimentation and measurement, rather than moving precipitously to standards that industry is expected to implement. Additional concerns outlined in USCIB’s comments are past failures of similar type of monolithic top-down architectures and the fact that many of the challenges identified in the “New IP protocol system” have been addressed or are currently being addressed.

“In our view, it is not the ITU’s role to impose a single technology or approach on a global scale,” added Wanner. “To reiterate, we urge the U.S. Government to strongly oppose resolutions supporting a New IP. Other parties involved in standardization share our concerns.”

USCIB is committed to working with the U.S. Government to identify opportunities for constructive engagement that helps to advance U.S. policy objectives. In its recommendations, USCIB emphasized that inputs of all stakeholders produce a flexible policy environment critical to empowering the rapidly evolving digital economy; stakeholder inclusion can lower the risk of unintended consequences and increase legitimacy and adoption of policies. The turbulent economic and political backdrop caused by the COVID-19 pandemic makes such multistakeholder participation even more important to ensure that Internet policy remains grounded in sound commercial, technical, and human rights-related expertise.

Other recommendations outlined by USCIB included the need to ensure a resilient, secure and diverse 5G supply chain.

To view USCIB’s comprehensive comments and recommendations, please click here.

USCIB Urges Administration to Remove China Tariffs on Products Needed to Fight COVID-19

USCIB submitted comments to the United States Trade Representative (USTR) on China tariffs on May 18. The comments focused on Additional Modifications to the 301 Action to Address COVID-19 in relation to China’s acts, policies and practices related to technology transfer, intellectual property and innovation.

As noted in previous comments that USCIB has submitted on 301 actions, USCIB continues to hold the position that tariffs stifle the U.S. economy and will not achieve the Administration’s goal of changing China’s behavior.

“Rather than creating more opportunities for U.S. business, sweeping tariffs restrict U.S. agriculture, goods, and services exports and raise costs for businesses and consumers,” said USCIB Senior Director for Investment, Trade and Financial Services Eva Hampl. The economic crisis caused by the COVID-19 pandemic has amplified the negative impacts of the tariffs on companies’ supply chains and the U.S. economy.”

USCIB highlighted several products that should be removed from the tariff list, including medical equipment central to the diagnosis and treatment of COVID-19 response and of related ailments, as well as medical equipment parts, components and 3D printers.

The comments also highlight chemicals and plastics, which have been recognized for their critical role in the production of cleaning and disinfecting products, as well as medical equipment such as masks, diagnostic equipment and disposable gowns.

For a complete list of products and USCIB’s comments to USTR, please click here, please click here.