USCIB Washington Update: May – June, 2019

During the months of May and June 2019, USCIB Staff met with Angela Ellard, House Ways & Means Minority Chief Trade Counsel, Christa Brzozwski, DHS, Nick Gardner, US Dairy Export Council, and Martin Kreienbaum, German Federal Ministry of Finance, issued recommendations on the WTO e-Commerce negotiations, hosted the 14th Annual OECD International Tax Conference, and much more. Below are summaries of these and other highlights from the activities of USCIB in Washington, D.C. over the last three 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
  1. ICT Policy – Promoting Sound Policies for New Technologies
  1. Tax – Advancing Tax Policies that Promote U.S. Competitiveness
  1. Customs and Trade Facilitation – Reducing Barriers and Costs from Customs and Border Control Practices
  1. Anti-Illicit Trade – Promoting Strong International AIT Leadership and Advocating a Comprehensive and Multi-Disciplinary Approach to AIT
  1. Food and Agriculture – Promoting an Open and Efficient Global Food System by Providing Industry Expertise
  1. China – Supporting Policies and Relationships that Enhance U.S.-China Business

  1. Competition – Creating Global Legal Practices for an Open and Competitive Business Environment
  1. Membership
  2. Upcoming Events
  3. Staff List

 Trade and Investment – Opening Global Markets for Trade and Investment 

Angela Ellard, House Ways & Means, Briefs USCIB Trade Committee: At the June 20 meeting of the USCIB Trade and Investment Committee members received a briefing from Angela Ellard, Minority Chief Trade Counsel, House Ways & Means Committee. She shared her immediate impressions of Ambassador Lighthizer’s hearing the day prior, indicated that USMCA is a top priority and responded to questions on a range of other trade issues. This was followed by a briefing from Nick Ashton Hart of the Digital Trade Network, who called into the meeting directly after the conclusion of the WTO E-Commerce negotiations in Geneva. The most recent round of negotiations took place from June 18-20. Nick was able to provide an in depth, off-the-record briefing on the negotiations as the only business representative present in the room for the negotiations.

USCIB Statement on WTO e-Commerce Negotiations: In early June, USCIB issued Recommendations on the WTO e-Commerce negotiations, reflecting member priorities and goals for the negotiations, which had their first round in May. At the December 2017 WTO ministerial in Buenos Aires, 71 countries agreed to begin discussing new global rules to facilitate the expansion of the digital economy. The negotiations were formally launched in January with a joint statement by 76 countries, including the United States, in Davos at the World Economic Forum. As of the most recent round, the joint statement initiative now includes 78 WTO members, representing 90% of global trade. USCIB encouraged negotiators to focus on trade facilitation, services, digital trade, and transparency and trust. In addition to this paper, USCIB is actively engaging in the negotiations in Geneva via various efforts, including the Digital Trade Network and the International Chamber of Commerce.

Robinson on the Road (1): OECD and “Business at OECD” Annual High-Level Sessions: USCIB President/CEO Peter Robinson was one of the leaders of the Business at OECD (BIAC) delegation participating in the OECD’s annual Ministerial session in Paris May 22-23. Peter also attended the OECD’s pre-Ministerial Forum and was able to have a series of bilateral meetings with senior government representatives from the U.S. and other OECD countries, senior OECD officials including Secretary General Gurria and the newly-appointed Deputy Secretary General from the U.S., Jeffrey Schlagenhauf. Peter also attended, along with Business at OECD Vice Chair Rick Johnston (Citi), the annual BIAC General Assembly of its 30 national committees members and the 5th annual B20/G20/BIAC/OECD dialogue session ahead of the June G20 Osaka Summit, an opportunity for business to share recommendations to the G20 leaders and Sherpas.

Robinson on the Road (2): ICC High-Level Meetings: The following week, May 28-29, in Paris Peter Robinson shifted into International Chamber of Commerce (ICC) mode, representing USCIB at the ICC’s “Permanent Heads” meeting (i.e. Peter’s National Committee head counterparts from around ICC’s broad global network) and the ICC “World Council”. A special “Knowledge Solutions” session was held, at which ICC Secretary General John Denton and his leadership team laid out their vision, priorities, and structure for the organization, and which also included leadership representatives from some of ICC’s policy Commissions. A special ICC Centenary Summit was held to mark ICC’s 100th year, which was addressed by senior governmental and intergovernmental officials and at which previous ICC Chairmen and Secretaries-General were present.

Robinson on the Road (3): Geneva and London – ILO Leadership and Partnership with ICC-UK: after a short break at home, Peter was off to Geneva to participate, June 17-18, along with USCIB Vice President Gabriella Rigg Herzog, Senior Counsels Ronnie Goldberg and Tom Mackall, and several USCIB member company representatives in events at and around the International Labor Organization’s (ILO) ten-day centennial International Labor Conference. While in Geneva, Peter attended the Presidents Forum of the International Organization of Employers (IOE) and was a featured panelist, along with ILO DG Guy Ryder, WTO DG Roberto Azevedo, World Bank SVP Mahmoud Mohieldin, OECD Chief of Staff Gabriela Ramos, ITUC DG Sharan Burrow and others at an ILO event on “Multilateralism for an Equitable Future of Work.” Peter was also able to have a series of very useful informal bi-laterals with key government and international organization leaders. Peter then stopped in London on his way home, joining a panel at ICC-UK’s annual general meeting, presenting USCIB views on the future of the WTO, the multilateral trading system, and the just-launched WTO e-commerce negotiations. Peter also was invited to join and speak to ICC-UK’s Board meeting about current USCIB/ICC-USA priorities.

Hampl Discusses China and USMCA at Investor Conference: USCIB Senior Director, Investment, Trade and Financial Services, Eva Hampl, spoke on a panel entitled Trade & Tariffs – Today & Tomorrow at the annual MLP & Energy Infrastructure Conference (MEIC 2019) in Las Vegas, May 14-16. The panel, which also included Colin Bird from the Embassy of Canada and Karen Antebi from the Embassy of Mexico, provided a macro perspective on current trade issues. The discussion focused on various issues surrounding China, the importance of the U.S. trade relationship with Mexico and Canada, including the U.S. Mexico Canada Trade Agreement (USMCA), and other trade issues.

Donnelly Meets with Swiss Government Official: USCIB Vice President Shaun Donnelly met May 14 with visiting senior Swiss Government official, Phillippe Nell, Director for the Americas in the State Secretariat for Economic Affairs (“SECO”), to exchange views on a range of bilateral and global trade and economic issues, including WTO reform, China, new U.S. national security review procedures for incoming Foreign Direct Investment (FDI), and possibilities for a U.S. – Switzerland trade agreement.

USCIB Board of Directors Focuses on Trade Policy Developments: USCIB’s Board of Directors at its Spring meeting in New York City on May 15, had a wide-ranging discussion of key trade issues. The Board focused on issues including “section 232” national security reviews of imported steel, aluminum, and automobiles; prospects for congressional approval of the U.S./Mexico/Canada Agreement (USMCA); U.S.-China trade tensions; as well as WTO priorities, negotiation of an e-commerce agreement and institutional reform of the WTO. The Board endorsed the leadership role and the strong policy positions USCIB’s Trade and Investment Committee have been articulating.

USCIB Leading Business Voice on UNCITRAL Negotiations on Investment Agreement “Reform”: USCIB staff members have been meeting regularly with U.S. government investment negotiators and lawyers participating in the negotiations under the auspices of the UN’s Commission on International Trade Law (UNCITRAL) Working Group 3. Those discussions of possible revisions to the vast network of 3000+ Bilateral Investment Treaties (“BITs”) as well as investment chapters in Free Trade Agreements (FTAs) around the world are zeroing in on key enforcement details, the Investor-State Dispute Settlement “ISDS” provisions. On April 29, USCIB staff met with the key US negotiators from the State Department and the office of the U.S. Trade Representative to review developments. On May 23, USCIB Vice President Shaun Donnelly was a rare business participant amidst a sea of lawyers in the discussion of the UNCITRAL negotiations at the open public meeting of the State Department’s Advisory Committee on Private International Law. USCIB is continuing to urge the U.S. Government and other participants to maintain strong substantive investment protections as well as enforcement provisions.

ICT Policy – Promoting Sound Policies for New Technologies

 USCIB Members Shape Launch of OECD Review of 2013 Privacy Guidelines, Advance Work on Security, Data Governance, & Communications Issues: Business should assume responsibility for the privacy of data through its life cycle by conducting rigorous and documented risk assessments and mitigation, ensuring transparency through both internal and external audits, continually monitoring and testing to prevent gaps, and generally going above and beyond what is required by law. This was an important message delivered USCIB members who participated in a special OECD workshop on May 6 aimed at a advancing the mandated five-year review of the 2013 OECD Guidelines Governing the Protection of Privacy and Transborder Flows of Personal Data (the “Privacy Guidelines”). The May 6-7 meetings of the Committee on Digital Economy Policy (CDEP) Working Party Security and Privacy in the Digital Economy (SPDE), also moved forward work focused on revising an OECD Recommendation on the Protection of Children Online, developing principles for access to and sharing of data, advancing the Global Forum for Digital Security for Prosperity, and adopting the draft Recommendation on Artificial Intelligence. AT&T provided a critical review of the OECD’s work on bundled communication price baskets, which was considered at the May 7 meeting of the Working Party on Communication Infrastructures and Services Policy (CISP).

USCIB Convenes Meeting with Co-Director of the UN High Level Panel on Digital Cooperation Secretariat: USCIB convened a private, luncheon discussion on June 13 with Ambassador Amandeep Gill, Co-Director of the UN High-Level Panel on Digital Cooperation (HLPDC) Secretariat. The meeting was especially timely since the HLPDC report, The Age of Digital Interdependence, was hot off the press having been issued on June 10. USCIB members reiterated key points in our November 2018 and January 2019 submissions, urging a “holistic approach” to digital policy that went beyond use of digital technologies by the information, communications, and technology (ICT) sector, and considered how ICTs can serve as enablers for innovations across all sectors, such as in healthcare, education, finance, and energy, to name a few. Members cautioned against creating duplicative Internet governance mechanisms, urged increased resources to support the Internet Governance Forum (IGF), and encouraged the HLPDC to integrate the OECD’s work on Artificial Intelligence and digital transformation as well as draw upon initiatives of standards organizations, such as the IEEE.

USCIB Engages with U.S. Department of Justice and State about International Initiatives Focused on Cybercrime and Cybersecurity: The June 13 meeting of the ICT Policy Committee featured discussions with Department of Justice officials about efforts currently underway to negotiate an additional protocol to the so-called Budapest Convention on Cybercrime. The changes are aimed at bringing the Convention up to date with developments in the digital economy, improve on the current Mutual Legal Assistance Treaty (MLAT) approach, and generally expand international cooperation to pursue various computer crimes. An important over-arching theme was that cybercrime (e.g. fraud and other crimes involving computers) should not be conflated with cybersecurity, the latter of which centers on the protection of networks. Complementing the cybercrime discussion, USCIB members explored with key State Department officials the latest developments in the United Nations Group of Governmental Experts on Developments in the Field of Information and Telecommunications (GGE), which enjoys U.S. support. The GGE is structured to convene regular institutional dialogue on cybersecurity issues as well as bilateral and regional discussions that feed into the UN General Assembly. In the run-up to the 73rd session of the UN General Assembly, however, the Russian Government put forward a competing proposal for a cybersecurity-focused Open-Ended Working Group (OEWG). The U.S. Government abstained on grounds that the OEWG’s work likely will be strongly influenced by Russia’s support for mechanisms to censor online content. Nevertheless, the OEWG kicked off an organization meeting on June 3 and likely will proceed ahead of the GGE process. The State Department speaker informed USCIB members that stakeholders accredited by ECOSOC may participate in the OEWG as observers; the GGE is a multilateral process involving governments only.

USCIB Members Advocate for Timely Development of a GDPR-Compliant Uniform Access Model (UAM) for Nonpublic Registration Data at ICANN 65: ICANN 65’s policy-focused meeting wrapped up on June 27 in Marrakech, Morocco. Barbara Wanner, USCIB Vice President for ICT Policy, and members from AT&T, Amazon, BT, Facebook, Google, Microsoft, The Walt Disney Company, and VeriSign, joined participants from the multi-stakeholder community to address key policy issues in management of the domain name system. For the past year, USCIB members have been contributing actively to an Expedited Policy Development Process (EPDP) to develop a formal policy to ensure that ICANN and the industry of more than 1,000 generic top-level domain (gTLD) registries and registrars meet existing ICANN contractual requirements concerning the collection of and access to registration data as well as comply with the EU General Data Protection Regulation (GDPR). The EPDP’s Phase 1 Final Report was issued earlier this year, which contained 29 policy recommendations. USCIB members who participate in the ICANN’s Business and Intellectual Property Constituencies used the Marrakech meeting to underscore the importance of moving expeditiously in “Phase 2.” This phase will focus on designing a Uniform Access Model (UAM) to enable third-party access to non-public WHOIS data for legitimate law enforcement, consumer protection, brand management, and intellectual property (IP) protection purposes. Wanner serves on the Business Constituency’s Executive Committee.

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

USCIB Holds Successful Tax Conference with the OECD and Business at OECD: The fourteenth annual OECD/USCIB Tax Conference took place on June 3rd and 4th at the Four Seasons in Washington, DC. The conference focused on the taxation of the digitalizing economy and provided the first opportunity for business and governments to discuss the OECD’s work program. The conference also considered treaty issues and the tax implications of Brexit. Tax Committee Chair, Bill Sample, and Vice Chairs, Tim McDonald, Louise Weingrod, and Will Morris represented business views at the conference. Economist Ngozi Okonjo-Iweala’s keynote remarks focused on ways to improve the tax capacity of emerging markets, which are expected to receive a growing share of global private-sector investment in the years ahead

Other panelists and speakers at this year’s conference included:

  • Pascal Saint-Amans, director of the OECD Center for Tax Policy & Administration
  • Martin Kreienbaum, director general for international taxation, German Ministry of Finance
  • Chip Harter, deputy assistant secretary for international tax affairs, U.S. Treasury
  • Dr. Ngozi Okonjo-Iweala, an economist and former finance minister of Nigeria
  • Doug O’Donnell, commissioner of the Large Business and International Division, IRS
  • Mike Williams, director of business and international tax, HM Treasury (UK).

USCIB Tax Committee Meets in Conjunction with OECD/USCIB Tax Conference: The USCIB Tax Committee met with Martin Kreienbaum, which afforded committee members a deep dive on some of the issues discussed at the Tax Conference. The committee also considered ways to provide input into the OECD work program and recent guidance on Tax Cuts and Jobs Act.

Carol Doran Klein Represents Business Views at the Pacific Rim Tax Conference in Palo Alto: USCIB’s tax expert Carol Doran Klein presented at the ninth annual Pacific Rim Tax Conference on Digital Economy Tax Issues, held May 9-10 in California. Doran Klein’s panel covered the ongoing work on taxation of the digitalizing economy at the Organization for Economic Cooperation (OECD) and the United Nations. The panel provided an overview of the background including Action 1 of the OECD’s Base-Erosion and Profit Shifting (BEPS) project, digital services taxes and other unilateral interim measures, and the different options under consideration at the OECD.

USCIB Submits Comments to Regulators: USCIB submitted comments on proposed regulations on Foreign Derived Intangible Income and on draft UN transfer pricing guidance. The comments can be found under the recent accomplishments section of our web page.

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

USCIB and U.S. Chamber Hold WCO E-Commerce Industry Day Meeting: On May 21, 2019, USCIB members along with many U.S. government agency partners (CBP, DHS, USTR, State, Treasury), and non-member associations working on customs issues (IRU, US Fashion Industry Association, American Association of Importers and Exporters), came together to discuss the WCO E-Commerce Framework of Standards. The meeting was led by Christa Brzozwski of DHS, and Customs and Trade Facilitation Committee Chair, Jerry Cook of Hanes brand. The goal of the meeting was to ensure that the USG have enough “industry” support for their positions going into the June Policy Commission Meeting and it was felt that this goal was achieved.

Anti-Illicit Trade – Promoting Strong International AIT Leadership and Advocating a Comprehensive and Multi-Disciplinary Approach to AIT

USCIB Anti-Illicit Trade Committee Talks FTZ Legislation: On June 10, 2019, USCIB hosted Paul Massaro, Policy Advisor for the Commission on Security and Cooperation in Europe (U.S. Helsinki Commission) and Gary Kalman, Executive Director for the Financial Accountability and Corporate Transparency (FACT) Coalition to discuss future FTZ legislation and the Corporate Transparency Act. Massaro explained how the Helsinki Commission has engaged and become a part of the US task force on illicit trade while Kalman elaborated on the international development of the FACT coalition within the illicit finance background. At the meeting, Megan Giblin and David Luna, Committee Chair, provided updates on AITC partnerships including possible FTZ workshop, meetings with State and APEC, as well as beginning discussions with ICC BASCAP.

Food and Agriculture – Promoting an Open and Efficient Global Food System by Providing Industry Expertise

USCIB Holds Joint Food and Agriculture and Health Care Committee Meeting: On June 5, 2019, Nick Gardner, Director, Codex and International Regulatory Affairs at the US Dairy Export Council, met with USCIB members to provide a detailed overview and insight into Codex Alimentarius and its involvement with food safety. Gardner emphasized the overarching issue with WHO and FAO jointly administering Codex, which poses several challenges, such as major trade implications and access to new markets/trade to existing markets. Additionally, at the meeting, Mike Michener discussed important upcoming events, including the ECOSOC High Level Political Forum (July 9-18) and the UN General Assembly (September, 17-30).

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

 USCIB Submits Comments on China Tariffs and Hampl Testifies: USCIB submitted comments on June 17 to the office of the United States Trade Representative (USTR) on the proposed modification to Section 301 regarding China’s policies and practices related to technology transfer, intellectual property and innovation. The submission expressed concern that proposed tariffs on essentially all Chinese imports will stifle the U.S. economy and will not achieve the Administration’s goal of changing China’s behavior. Eva Hampl, Senior Director for Investment, Trade and Financial Services testified on these issues before the Section 301 Committee on June 21 as part of a hearing spanning 7 days and with over 300 witnesses. USCIB also joined with the Tariffs Hurt the Heartland Coalition, alongside 661 other companies and association, to send a letter to President Trump on June 13 urging the administration to negotiate a strong deal with China that addresses longstanding structural issues, improves U.S. global competitiveness and eliminates tariffs.

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

USCIB Urges Reversal of 1-800 Contacts FTC Ruling: USCIB filed an amicus brief with regards to 1-800 Contacts, Inc. case to highlight the challenges American businesses would face under the recent Federal Trade Commission’s (FTC) decision’s approach to antitrust liability for trademark settlements, and explain the potential negative impacts the decision would have on businesses, consumers and competition if left to stand. Earlier this year, the FTC decided to impose antitrust liability against 1-800 Contacts, the largest online retailer of contact lenses in the U.S., on the basis that 1-800 Contacts’ settlements of trademark infringing lawsuits against at least fourteen competing online contact lens retailers restricted trade. Among other things, USCIB’s amicus argues that the Commission’s decision ignores the critical importance to business of intellectual property rights and its enforcement and would unfairly require the lawful exercise of such rights to a higher pro-competition standard.

Membership

Membership Meetings: The USCIB membership department and policy staff met with representatives from member companies Nissan North America, Expedia, Astellas, and American Express 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. In addition, the USCIB membership department and USCIB President and CEO Peter Robinson met with representatives from member companies AT&T and Intel Corporation.

New Members: USCIB has recently welcomed Palo Alto Networks as a new member.

Upcoming Events:

  • OECD Committee on Digital Economy Policy, Paris, France – July 1-2
  • UN High-Level Political Forum on Sustainable Development (HLPF), New York, NY – July 9-18
  • USCIB Customs and Trade Facilitation Committee Meeting, Washington, DC – July 10
  • USCIB Foundation-IOE-Deloitte SDG Summit, New York, NY – July 17
  • US Customs & Border Protection 2019 Trade Symposium, Chicago, Illinois – July 23-24
  • Internet Governance Forum USA (IGF-USA), Washington, DC – July 25
  • Meeting of APEC Electronic Commerce Steering Group and Data Privacy Subgroup, Puerto Varas, Chile – August 18-21
  • Preparing for the Future of Work: A USCIB Foundation Dialogue, Washington, DC – September 5
  • 11th Annual Engaging Business Forum on Business and Human Rights, Atlanta, Georgia – September 12-13
  • World Radiocommunication Conference (WRC), Sharm El Sheikh, Egypt – October 28-November 22
  • ICANN 66, Montreal, Canada – November 2-7
  • Meetings of the OECD Committee on Digital Economy Policy (CDEP) and its Working Parties, Paris France – November 18022
  • 14th Internet Governance Forum (IGF), Berlin, Germany – November 25-29

 

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

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

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

Norine Kennedy
Vice President, Strategic International Engagement, Energy and Environment
212-703-5052 or nkennedy@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 Associate, New York
212-703-5082 or mlauter@uscib.org

Daniella Goncalves
Assistant Policy and Program Manager, Corporate Responsibility and Labor Affairs
212-703-5083 or dgoncalves@uscib.org

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

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

Chris Olsen
Policy and Program Associate, 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

Kendall Thibeadeau
Policy and Program Associate, New York
212-703-5095 or kthibeadeau@uscib.org

Ashley Harrington
Policy and Program Associate, Washington
202-682-5861 or aharrington@uscib.org

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

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

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

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Modest Progress at G20 Osaka Summit Welcomed

USCIB responded with cautious optimism to the modest progress made at this year’s Group of 20 Summit in Osaka, Japan, and at the meeting between President Trump and Chinese President Xi Jinping, where the two leaders agreed to continue working toward a resolution of their bilateral trade disputes.

“We are relieved that the U.S. and China have stepped back from a broader escalation of their tit-for-tat tariffs,” said USCIB Senior Vice President Rob Mulligan. “We encourage both parties to move swiftly toward resolution of their disputes. The existing tariffs have already had a negative impact on American exports, and could threaten U.S. jobs as well as our broader competitiveness.”

Mulligan also welcomed the G20 leaders’ endorsement of recent OECD blueprints for cooperation on global tax measures as well as on a “human-centric” approach to the deployment of artificial intelligence – both areas where USCIB members have provided active input to international policy deliberations.

In their communiqué, the G20 leaders warned of growing risks to the global economy but stopped short of denouncing protectionism, mainly due to push-back from the United States. “We strive to realize a free, fair, nondiscriminatory, transparent, predictable and stable trade and investment environment, and to keep our markets open,” they stated.

While leaders made only passing mention of efforts to modernize the World Trade Organization, several voiced renewed support for the recently launched plurilateral negotiations on e-commerce taking place under the WTO’s aegis.

President Trump and leaders from China, Japan and the European Union joined the WTO Director General Roberto Azevêdo in welcoming the Osaka Declaration on the Digital Economy, which commits the signatories to promote efforts on international rule-making in this area and urges further progress on e-commerce at the WTO.

“A fragmentation of the digital economy would hurt us all,” said Azevêdo. “It would mean higher costs and higher barriers to entry, affecting developing countries and smaller businesses the most. The 20th century showed that a fractured global trade order was not sustainable – that’s why we created the WTO. The same is true today. You may well be working on a constitution for the economy of the 21st century.

2019 OECD Tax Conference

SAVE THE DATE – The 2020 OECD International Tax Conference, June 1-2

Four Seasons Hotel, Washington

June 1: 8:30am – 7:30pm
June 2: 8:00am – 1:00pm

2019 Agenda with Confirmed Speakers

Now in its 14th year, this annual conference provided a unique opportunity for the U.S. business community to interact with key representatives from the OECD Centre for Tax Policy and Administration (“CTPA”) as well as key members of the OECD’s Committee on Fiscal Affairs: including Pascal Saint-Amans, Director, CTPA, and Grace Perez-Navarro, Deputy Director, CTPA. Speakers included Martin Kreienbaum, Chair of the OECD’s Committee on Fiscal Affairs and Director General for International Taxation at the German Federal Ministry of Finance, and Lafayette “Chip” Harter, Deputy Assistant Secretary – International Tax Affairs. This year’s conference focused mainly on the OECD’s work on a global solution to the tax challenges posed by the digitalization of the economy. This work is on a fast track, with the G20 having asked OECD to deliver a global solution in 2020, with an update in June 2019. With G20 Finance Ministers meeting in Japan a few days after the conference, this event provided participants a unique opportunity to hear and discuss the latest developments on this important issue.

2019 Agenda with Confirmed Speakers

Speaker Biographies

Information for Participants

Hotel Room Block

2019 Key Topics:

  • Four sessions on the Tax Challenges of Digitalization covering Pillar 1 – Profit Allocation and Nexus, Pillar 2 – Minimum Taxes and Taxes on Base Eroding Payments and next steps
  • Tax Treaties and the Multilateral Instrument
  • Improving Tax Certainty – ICAP and MAP
  • Transfer Pricing
  • The International Tax Implications of Brexit

2019 Featured Speakers:

  • Dr. Ngozi Okonjo-Iweala – Economist and International Development Expert with over 30 years of experience working in Asia, Africa, Central Europe and Latin America (Keynote Speaker)
  • Pascal Saint-Amans – Director, Centre for Tax Policy and Administration, OECD
  • Grace Perez-Navarro – Deputy Director, Centre for Tax Policy and Administration, OECD
  • Peter Robinson – President and CEO, USCIB
  • Russel Mills – Secretary General, Business at OECD
  • Martin Kreienbaum – Director General, International Taxation, Federal Ministry of Finance, Germany
  • Mike Williams – Director, Business and International Tax, HM Treasury, United Kingdom
  • Alexandra MacLean – Director General, International and Large Business Directorate, Canada Revenue Agency
  • Harry Roodbeen – Director, International Tax and Consumer Tax, Ministry of Finance, The Netherlands
  • Gael Perraud – Co-Chair, OECD Task Force on the Digital Economy; Director of International Taxation and European Affairs, Ministry of Economy and Finance, France
  • Lafayette (Chip) G. Harter – Deputy Assistant Secretary (International Tax Affairs), U.S. Treasury
  • Doug O’Donnell – Commissioner, Large Business and International (LB&I) Division, IRS
  • John C. C. Hughes, Director, APMA, Large Business and International (LB&I) Division, IRS
  • Achim Pross – Head of International Cooperation and Tax Administration, Centre for Tax Policy and Administration, OECD
  • Tomas Balco – Head of the Transfer Pricing Unit, Centre for Tax Policy and Administration, OECD
  • Sophie Chatel – Head of the Tax Treaty Unit, Centre for Tax Policy and Administration, OECD
  • Richard Collier – Senior Advisor, Centre for Tax Policy and Administration, OECD
  • Michael Graetz – Professor of Tax Law, Columbia Law School
  • Will Morris – Chairman, Business at OECD Committee on Taxation and Fiscal Affairs; Vice Chair, USCIB Tax Committee
  • Bill Sample – Chairman, USCIB Tax Committee; Vice Chair, Business at OECD Committee on Taxation and Fiscal Affairs
  • Tim McDonald – Vice Chair, USCIB Tax Committee
  • Louise Weingrod – Vice Chair, USCIB Tax Committee
  • Other Senior Treasury and Foreign Tax Policy Officials

For more information, including how to be placed on the waiting list, please contact Erin Breitenbucher (202-682-7465 or ebreitenbucher@uscib.org).

More on USCIB’s Taxation Committee

2019 Sponsors:

PWC

 

Black Deloitte Logo

exxonmobil

 

 

For information on how to become a sponsor, please contact Abby Shapiro (617-515-8492 or ashapiro@uscib.org). 

 

Presented by:

USCIB logo

OECD

In association with:

IFA Logo
ITPF
NFTC logo

Tax Executives Institute, Inc.

Tax Conference Provides First Look at OECD’s Digitalization Roadmap

L-R: Pascal Saint-Amans (OECD), Gaël Perraud (French Ministry of Economy & Finance), Brian Jenn (U.S. Treasury), Pam Olson (PwC), Louise Weingrod (Johnson & Johnson)

Global companies are facing potentially seismic shifts in the taxation of their operations, with national tax authorities seeking to keep pace with a rapidly digitalizing business environment. This was the backdrop when more than 250 global tax professionals, government officials and other tax experts gathered in Washington, D.C. June 3-4 for USCIB’s annual OECD International Tax Conference. This year’s event provided an especially timely window into the Organization for Economic Cooperation and Development’s work to develop tax policy recommendations to governments.

On May 31, the OECD released a work program to develop proposals for allocating a company’s profits among countries that re-balance source and residence taxation and also result in a global minimum amount tax paid on earnings. Drawing from the views of nearly 130 jurisdictions (far broader than the OECD’s membership of 36 countries), the OECD roadmap could result in fundamental changes to national tax laws and bilateral tax treaties, including a move to a much more multilateral approach to international corporate taxation.

USCIB President and CEO Peter Robinson asked conference-goers in his opening remarks: “How will a new consensus form around reallocation of taxing rights? Many interests will need to be balanced to achieve a solution that will be ‘globally fair, sustainable and modern,’ to quote the G20. The OECD also needs to keep global growth front and center.”

This sentiment was echoed by Bill Sample, tax policy advisory at Microsoft and chair of USCIB’s Tax Committee.

“Unlike the OECD’s earlier BEPS [base erosion and profit-shifting] exercise, this project will reallocate tax revenues among various countries,” he said. “It’s a political exercise, requiring compromise and the balancing of many competing interests among governments. One thing parties generally agree on is the need to keep these revenue shifts modest, and to have a predictable, sustainable model for global tax policy going forward.”

The conference was the 14th annual gathering on global tax policy developments convened by USCIB, in cooperation with the OECD and its official private-sector advisory body, Business at OECD (also known as BIAC).

The G20’s mandate

G20 leaders have tasked the OECD, with a long and distinguished history of work on international tax policies, to lead work a consensus-based solution to address the impacts of the digitalization of the economy, with a target of developing recommendations by next year.

The OECD’s effort represents “a fundamental rethink of the basics of the international tax system,” USCIB Vice President and International Tax Counsel Carol Doran Klein told Bloomberg News. “The scope could not be broader.”

Economist Ngozi Okonjo-Iweala

G20 governments will review the OECD roadmap at a June meeting in Japan.

“Despite the fact that people have been listening to all the talk about this being the largest international tax project, it’s only when people read this and see how wide-ranging this is that they’ll be able to appreciate it,” Will Morris, chair of the BIAC Committee on Taxation and Fiscal Policy and deputy global tax policy leader at PwC, told Bloomberg. “It’s not just about changing technical rules. It’s about saying, essentially, the world has changed, and this system we’re looking at needs to change with it.”

Economist Ngozi Okonjo-Iweala’s keynote remarks focused on ways to improve the tax capacity of emerging markets, which are expected to receive a growing share of global private-sector investment in the years ahead.

Other panelists and speakers at this year’s conference included:
Pascal Saint-Amans, director of the OECD Center for Tax Policy & Administration
Martin Kreienbaum, director general for international taxation, German Ministry of Finance
Chip Harter, deputy assistant secretary for international tax affairs, U.S. Treasury
Dr. Ngozi Okonjo-Iweala, an economist and former finance minister of Nigeria
Doug O’Donnell, commissioner of the Large Business and International Division, IRS
Mike Williams, director of business and international tax, HM Treasury (UK).

It’s not too early to mark your calendars for next year’s OECD International Tax Conference, which will take place June 1-2 in Washington, D.C.

Taxation

Trends and Challenges Facing U.S. Business:

  • Multiple sets of inconsistent rules that drive up costs and result in double taxation
  • The mounting political pressure to move towards changing the taxation of the digitalized economy
  • Efforts to unfairly increase the tax burden on companies

USCIB’s Response:

  • Engage with the OECD on the development of international taxation principles
  • Proactively shape the development of the OECD’s guidance on the taxation of the digitalized economy by demonstrating to policymakers that unilateral action can result in double taxation, decreased trade, and reduced global growth
  • Actively monitor and contribute to the work of the UN Committee of Tax Experts to ensure its alignment with the work of the OECD Tax Committee and inform policymakers of their actions’ impact on investment
  • Support enactment of foreign tax simplification provisions in the IRC that would significantly reduce the burden of complexity for U.S. companies and enhance their international competitiveness
  • Host an annual conference in Washington, DC that provides a unique opportunity for the U.S. business community to interact with key representatives from the OECD Centre for Tax Policy and Administration (“CTPA”).

Magnifying Your Voice with USCIB:

  • USCIB is the only U.S. business association formally affiliated with the world’s three largest business organizations where we work with business leaders across the globe to extend our reach to influence policymakers in key international markets to American business
  • Build consensus with like-minded industry peers and participate in off-the-record briefings with policymakers both home and abroad.

More Recent Accomplishments

News Stories

USCIB Washington Update: May – June, 2019 (7/10/2019) - During the months of May and June 2019, USCIB Staff met with Angela Ellard, House Ways & Means Minority Chief
Modest Progress at G20 Osaka Summit Welcomed (7/1/2019) - Leaders of the Group of 20 made incremental progress on a range of issues, while the U.S. and China avoided

Read More

Chair

Bill Sample
Tax Policy Advisor
Microsoft Corporation

Vice Chairs

Timothy M. McDonald
Vice President, Finance & Accounting, Global Taxes
The Procter & Gamble Company

Will Morris
Deputy Global Tax Policy Leader
PwC

Louise Weingrod
Vice President, Global Taxation
Johnson & Johnson

Staff

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

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

Subcommittees

BIAC/ICC Subcommittee

Inbound Investment Subcommittee

Legislative and Administrative Developments Subcommittee

Tax Treaties Subcommittee

Transfer Pricing Subcommittee

Working Groups

Working Group on Consumption Taxes

Working Group on the Digital Economy

Working Group on Environment and Energy Taxes

Working Group on Financial Services Issues

Working Group on Permanent Establishment Issues

 

Doran Klein Contributes Expertise on Taxation of Digitalizing Economy at Pacific Rim Conference

USCIB’s tax expert Carol Doran Klein presented at the ninth annual Pacific Rim Tax Conference on Digital Economy Tax Issues, held May 9-10 in California. Doran Klein’s panel covered the ongoing work on taxation of the digitalizing economy at the Organization for Economic Cooperation (OECD) and the United Nations. The panel provided an overview of the background including Action 1 of the OECD’s Base-Erosion and Profit Shifting (BEPS) project, digital services taxes and other unilateral interim measures, and the different options under consideration at the OECD.

Other topics covered at the conference included: International Aspects of Tax Policy and Enacted Legislation: Did it Work?; Corporate Restructuring in Light of Tax Legislation and BEPS; and Transfer Pricing, Documentation and International Tax. High-level government tax officials from Australia, Canada, India and Vietnam attended the conference as well.

USCIB will be hosting its own tax conference, alongside the OECD and Business at OECD June 3-4 in Washington DC. Now in its 14th year, this annual conference provides a unique opportunity for the U.S. business community to interact with key representatives from the OECD Centre for Tax Policy and Administration (“CTPA”) as well as key members of the OECD’s Committee on Fiscal Affairs.

For more information visit USCIB’s tax conference registration page.

Pacific Rim Tax Conference

Pacific Rim Tax Conference

May 9-10, 2019

The Pullman Hotel in Redwood Shores, CA.

USCIB Vice President for Tax Policy Carol Doran Klein will be a speaker.

The theme will be Post-Tax Cut, Digital and MLI World

Session topics will include: International Aspects of Tax Policy and Enacted Legislation: Did it Work?; Corporate Restructuring in Light of Tax Legislation and BEPS; Digital Economy Tax Issues (TFDE); Inter-Government Cooperation: MLI, Bilateral, Treaties, Competent Authority and MAP Peer Review; Implementing Transparency: CbC Reporting, Implementation and Government Reactions and EU Mandatory Reporting (DAC6); and Transfer Pricing, Documentation and International Tax: Post TCJA and BEPS.

Also, High Level Government Tax Officials from Australia, Canada, India, Vietnam, and Professionals’ Insights into Doing Business in China; OECD representative, as well Doug O’Donnell, LB&I Commissioner. The conference is co-supported by TEI, USCIB, IFA, SVTDG, SF Foreign Tax Club and Stanford University Law School.

For further information, please visit the conference website: www.pacifictaxpolicyinstitute.com.

New OECD Reports Outlines Business Investment Contribution to SDGs

The Organization for Economic Cooperation and Development (OECD) has recently published a report on “The Contribution of International Business Investment to the Sustainable Development Goals (SDGs).” The report surveys the main type of financing behind business investment in developing countries, recent trends, an evaluation of the contribution of these flows to the SDGs, and prospects going forward.

The report highlights that multinational enterprises (MNEs) have become one of the most important actors for channeling investment to the developing countries. A relatively new actor providing financing for development is the State-Owned Enterprise (SOE). Furthermore, mergers and acquisitions (M&A) is one of the primary vehicles that MNEs use to invest in foreign markets and a major component of foreign direct investment. M&A inflows in developing countries starting declining already in 2012.

An increasingly important source of international investment into developing countries is China; in 2017 China doubled its M&A in developing countries to $25 billion, making it their top resource of international M&A (ahead of Japan and the US). Meanwhile, private flows align naturally with the SDGs in the area of infrastructure: SDG 6, which focuses on clean water and sanitation), SDG 7 on affordable and clean energy, SDG 9 on industry, innovation and infrastructure, and SDG 10 which aims to reduce inequalities.

“The report calls to action for improving the global rules for trade and investment, pursuing domestic policy reform agenda to improve business climates, and addressing new areas of regulatory co-operation,” observed USCIB Senior Director for Investment, Trade and Financial Services Eva Hampl.

The OECD will be organizing a round table on investment and sustainable development on October 23, 2019, as part of the next OECD Investment Week.

USCIB Joins Coalition in Urging Specific US Government Action on US-China Trade

USCIB joined Americans for Free Trade, a multi-industry coalition consisting of over 150 members, to send a letter to President Donald Trump on April 22 regarding upcoming U.S.-China trade talks.

The Coalition letter urged the U.S. government to fully and immediately remove all recently imposed tariffs, including U.S. tariffs and China’s retaliatory tariffs as part of a final deal, while also encouraging the U.S. to come up with a deal that levels the playing field for U.S. companies by achieving meaningful changes to address China’s unfair trade practices that put American technology, innovation and intellectual property at risk.

Regarding unfair trade practices, the letter stated: “For too long, China has engaged in unfair trading practices, including forced technology transfer, cyber theft, intellectual property violations and more. We hope any final deal will resolve the structural issues that are at the core of the trade dispute in order to fully protect American technology, innovation, and intellectual property.”

The letter also urged the government to avoid any enforcement mechanism that would trigger further tariffs and obtain clarity on how the tariff exemption process will be carried out in the event of a deal.

Finally, the group also urged an economic assessment by the Administration examining the costs of tariffs for American businesses and consumers.

Americans for Free Trade represents companies that employ tens of millions of American workers and provide goods and services to virtually every corner of the United States.