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InternatIonal Business

Journal of the united StateS CounCil for international BuSineSS

Spring 2010 Vol. XXXii, no. 1

TheRecovery:
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Cross-Border Investment to the Rescue?

Inside
New USCIB chairman 3 OECD interview Green marketing
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the first word

PeterM.Robinson,PresidentandCEO,USCIB
With critical questions left unanswered, USCIB is urging a return to fundamental priorities

Reflections From Copenhagen
rideanddisappointment,butalsorenewedresolve,weretheemotions IbroughtbackfrommytimeatDecember’sUNclimatesummitinCopenhagen.Prideatthestrengthanddepthofthebusinessdelegationwejoined. Disappointmentatthelackofaclearroad-mapforglobalactiontomitigate andadapttoclimatechange—onethatwouldinvigorateprivatesectorinnovationandinvestmentinthecontextofareturntoeconomicgrowth.And hopethat,byatleastprovidingafoundationinthe“CopenhagenAccord,” majoreconomiesincludingChina,IndiaandtheUnitedStatescanbuildmore ambitiousandconcreteactionsgoingforward. USCIB was present in Copenhagen under the umbrella of the International ChamberofCommerce,whichservesastheworldwidefocalpointforbusinessrepresentationintheUNFrameworkConventiononClimateChange.(As mostreadersprobablyknow,theformalnameforthesummitwasCOP15, orthe15thconferenceofthepartiestotheUNframeworkconvention.)ICC didagreatjobkeepingthehundredsofbusinessdelegatesintheloop—and onthesamepage–astheincrediblycomplexnegotiationsunfolded.

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rightstospeedthedevelopmentofnewtechnologies,andambitiousnational strategiestoaddressglobalwarming.Inaddition,welaidoutdetailedrecommendationsonfinancialmechanismstomeettheclimatechallengeand mobilizethe$10trillionneededby2030tofundnecessaryimprovementsto theglobalenergyinfrastructure. Atthesummit,wejoinedwithICCindrawingspecialattentiontotheurgent needfortherapiddevelopmentofnewtechnologiestomeettheneedsof agrowing,energy-hungrypopulationworldwidewhiledealingeffectivelywith global warming. This was the focus of Copenhagen Business Day, which broughthigh-levelattentiontobusinesssolutionsinthesecriticalareas.We alsoco-hostedaspecialeventontheintersectionoftradepolicyandclimate change,wherespeakershighlightedthepositiverelationshipofopentrade andinvestmentwithtechnologyandfinancingforclimatesolutions. Sowithallthisinvestedinanambitiousoutcome,whatisUSCIB’stakeonthe resultsfromCopenhagen?WearedisappointedthattheUNprocessdidnot deliveramoreambitiousagreement.Whiletheratherminimalistresultsprovideabasisforfurtherwork,muchremainstobedonein2010todeliverthe clarity,flexibilityandenablingframeworksthatbusinesshaslongadvocated. AsIwritethis,mostpartiesstillhavenotlaidouttheirmitigation,adaptation orfinancialcommitmentswithanymeaningfulspecificity. With the apparent impasse in the UN process, we can expect a period of uncertainty, in which other influential organizations and deliberations could take on greater importance, such as the World Bank and G8/G20. In this regard, it is more important than ever to engage business positively and substantively in these processes, and work with governments to establish thepropertermsandproceduresthatwillgivebusinessthepredictabilityit requirestoplan,innovateandinvest.

USCIB’s Norine Kennedy helps lead the daily business briefing at COP 15 with Nick Campbell (Arkema),chairofICC’sClimateChangeGroup,atcenterandCarlosBusquets(ICC).

Wehadatrulyfirst-ratedelegationthatincludedAnn Condon(GeneralElectric),whochairsourEnvironmentCommittee,Brian Flannery(ExxonMobil), co-chairoftheUSCIBInternationalEnergyGroupandvice-chairofICC’sEnvironmentandEnergyCommission,Richard Wilder(Microsoft)andNorine Kennedy,USCIB’svicepresidentforenergyandenvironment(a“survivor”of allthepreviousCOPs).Eachmorning,aswegatheredintheBINGO(business andindustrynon-governmentalorganizations)roomforourdailybriefing,I wasespeciallyproudtoseeNorineonthedais,supportingICC’sdiscussion andoutlookfortheday’snegotiationsandevents. USCIB went into Copenhagen having reminded the Obama administration of the business community’s broad goals: an inclusive global agreement with action by all major emitting nations, support for intellectual property

These are just some of the issues that were supposed to be resolved in Copenhagen,butweren’t.Movingforward,discussioncontinuesintheUnited Nations,aswelooktowardanotherCOPinCancúnattheendofthisyear.But wealsowillwatchprocessesliketheMajorEconomiesForumwhichmightbe abletomoveaheadwithasmallergroupoflike-mindedcountries. Whatever the forum, you can expect USCIB to be there, pressing governmentstomakethehardchoicesrequiredformeaningfulactiononclimate andenergy. 

Contact Peter Robinson at (212) 703-5046 or probinson@uscib.org.

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McGraw-Hill CEO Is New Chairman of USCIB
n February, Harold McGraw III, the chairman, president and CEO of The McGraw-Hill Companies, and a vocal advocate of open markets and international engagement, was elected by USCIB’s Executive Committee to be USCIB’s next chairman, effective April 15. He succeeds William G. Parrett,retiredCEOofDeloitte,who wasfirstelectedchairmanin2005. “Ilookforwardtotheopportunitytoleadanorganizationdedicatedtogreaterglobalcooperation and economic growth,” said Mr. McGraw. “Now, more than ever, we must remain focused on expanding global access to capital, education, healthcare and technology. I want to especially congratulateBillParrettonhisextraordinaryleadership of USCIB and his contribution to global understandingandtrust.”

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Under Mr. McGraw’s leadership, McGraw-Hill has undergone a complete transformation, building a diverse portfolio of knowledge-based, global businesses designed to generate profits throughout a widevarietyofeconomiccyclesandmarketconditions.Aleadingvoiceoninternationaltradeandopen markets, Mr. McGraw has served as chair of the Business Roundtable and the Emergency CommitteeforAmericanTrade.Hewasthe2006recipient ofUSCIB’sInternationalLeadershipAward. “We are excited about working with Terry McGraw,” stated Peter M. Robinson, USCIB’s presidentandCEO.“Heisalongtimesupporterof USCIBanditsfundamentalgoalofimprovingthe conditions for global trade and investment, and hasdemonstratedafirmcommitmenttobusiness leadership on public policy. I would like to ex-

HaroldMcGrawIII

pressmypersonalgratitude,andthatofUSCIB’s members,toBillParrettforhisoutstandingstewardship.Welookforwardtohiscontinuedsupport andparticipationinourwork.” Mr. McGraw was optimistic about USCIB’s work and prospects. “This is an exciting time and an extraordinaryopportunitytofostermorecoordinationbetweendevelopinganddevelopedcountries, inthepursuitofeconomicgrowthandimproved standardsofliving,”hesaid.

Internet Governance Forum Looks Ahead

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s the world’s cyber-population reaches some 1.7 billion, getting Internet governance right is more important than ever. Against this backdrop, the UN-backed Internet Governance Forum(IGF)heldaroundofopenconsultationsin February,aimedatlayingthegroundworkforthe nextIGFthisSeptemberinVilnius,Lithuania.The InternationalChamberofCommerceanditsBASIS

(BusinessActiontoSupporttheInformationSociety)initiativepresentedthebusinessperspective attheconsultation. Convened under the aegis of the UN secretary general,theIGFisaone-of-a-kindinternationalplatformforfrankandopendiscussionongovernance issues from governments, business leaders, the technicalcommunityandcivil society. Last year’s forum in Sharm-el-Sheikh, Egypt, which attracted over 1,500 participants,underscoredthe importanceoftheInternetas a vast resource with enormouspotentialtoraiseliving standardsaroundtheglobe.
At the IGF open consultations (L-R): ZahidJamil(Pakistan),AyeshaHassan (ICC), Andrius Iskauskas (Lithuania) andHeatherShaw(USCIB).

Shaping enabling policies, and establishing the right legal and regulatory environment, are pivotal to Internet and infrastructure access. While theseissuesfeaturedontheagendaoftheIGFin 2009,ICCrecommendedthattheybeaddressed in a main session on development at the next forum.Heather Shaw,USCIB’svicepresidentof ICTpolicystated,“Wewouldliketoseethesessionfocusonpolicyimplications,informedpolicy choices, best practices and how challenges in theseareashavebeenovercome.” ICC, with input from USCIB members, formally submitted reflections on behalf of ICC BASIS membersaroundtheworld.Thecontributionalso calledforcloudcomputingtobeincludedinthe emergingissuessessionofthenextforum.Itwas suggested that discussions could help define whatthecloudisandisnot,outlinethenovelsolutions it offers and raise other security solutions andpolicyissues.

USCIBInternationalBusinessSpring2010www.uscib.org

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interview

OECD Deputy Secretary General Richard Boucher

Spearheading the OECD’s Outreach and Expansion
Ambassador Richard Boucher, a career U.S. diplomat, was named deputy secretary general of the 30-nation Organization for Economic Cooperation and Development in November. (Chile will become the OECD’s 31st member once its legislature ratifies accession.) Responsible for spearheading the OECD’s enhanced engagement and accession processes, he sat down for an interview with USCIB in January. Q: ow do you explain the OECD’s relevance H to Americans, especially business people? A:It’s relevant on a bunch of different levels. Whether it’s chemical standards, or tax treaties, orinternationalbriberystandards,ithasadirect effectonhowbusinessoperates,andhoweconomies operate around the world. It’s the place wherepolicyexpertscometogether. Q: ith the G8 giving way to the G20 as the W primary high-level forum for global economic discussion, what is the role of the OECD? A:Wedon’tknowforsure.AstheG8evolves,as theG20evolves,theOECDisgoingtoevolveas well.Whatwe’vefoundsofaris,becausewehave theexpertise,thesharedpolicyexperienceofnow 31 OECD members, and a substantial outreach efforttothebiggereconomiesaroundtheworld, thoseorganizationsturntotheOECDandsay,“Can youhelpus?”And,theanswerisyes,wecanhelp. Q: ell us about the OECD’s accession and enT hanced engagement efforts? A:Chileisthefirstofprobablyfoureconomiesin thenextsixmonthsthatwillcomein.Ithasdone abang-upjobgettingreadyformembership.Slovenia,EstoniaandIsraelalsoseemtobeontrack. Itlookslikewe’llhavetheminbynextJune.Russia’sonaslowertimetable.Thefactthatthey’re interestedinaccessionisgood.ThemoreRussia doestobringitselfinlinewithglobalstandards, thebetteroffweallare. Beyondthat,we’vegotfiveenhancedengagement countriesthatwe’reactivelyworkingwith:China, India, Indonesia, Brazil and South Africa. Those are countries that have substantial weight in the world economy. We need their understanding to enrichourdiscussion.Andwebringalottothem astheyfacepolicychoices. Q: hat specifically is involved in OECD acW cession? What do countries have to do to make the grade?
L-R:USCIB’sTimDeal,theOECD’sRichardBoucher,andDeloitte’sCharlesHeeter,chairmanoftheBusinessandIndustryAdvisory CommitteetotheOECD.

A:EachoftheOECD’s20-oddmajorcommittees goesthroughthepracticesofthecountryinits particularareaofexpertise.Andinareaswhere theythinkthecountryoughttodomoretocome uptostandards—forexample,passingintellectualpropertylegislation—theysay,“Look,we’ll give you a positive recommendation if you do this.”Thespeedofaccessionisgovernedbythe speedwithwhichtheyareabletocomethrough on those things. So just the process of accessionhasledtoupgradingthequalityoflawand implementation. Q: hat’s your perspective on how the OECD W figures in U.S. policy making? Is it an important organization? A:It’s always been important, part of our international economic picture. I think it’s becoming moreimportantonthedomesticeconomy.We’re

facingsomefairlybigeconomicchallenges,and the people who are making domestic economic policy want to know: what are other countries doingrightnow? Q: hat can business do to make your life W easier? A:GivemeideasIcansteal.Really.Ithinkwe’re all looking for good ideas these days. And tell uswhatweshouldbedoing.We’vegottobean organization that responds to the needs of our constituents — member countries, non-member countries,business,labor.Everybodywho’sworking on the world economy these days needs to comeforwardwithideasandonthingsweought tolookattogether. Read this interview in it’s entirety at www.uscib. org/index.asp?documentID=3965.

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cover story

Cross-Border Investment to the Rescue?

Top U.S. official makes open-markets pledge at USCIB conference

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sitemergesfromadeeprecession,theUnitedStatesmust rejectprotectionismandeconomicnationalism,andchampionforeign investment as a key driver of U.S. prosperity. This was the messagedeliveredbyatopStateDepartmentofficialataMarch conferenceinWashington,D.C.organizedbyUSCIB.Robert Hormats,undersecretaryofstateforeconomic,energyandagriculturalaffairs,saidbothinwardandoutboundFDIcontributetoU.S. growth,employmentandcompetitiveness.

“We need to maintain a positive environment for international investment,”statedMr.Hormats.“TheU.S.,alongwithothergovernments,needstoresistprotectionismandeconomicnationalism. WealsoneedtorecognizethatFDIcontributesenormouslytoour economic success. And we need to pursue policies that will increaseconfidenceofforeigninvestors.Thisisthekeytoextending TheStateDepartment’sRobertHormats(right)withDeloitteCEOJimQuigley. oureconomicrecoveryandglobaleconomicgrowth.” “Jobs and exports are the main issues on the minds of policy makers,”saidJeffrey Shafer,vicechairmanofCitigroup,summing Withmanyspeakersattheconferencecallingforaforcefulstateuptheconference’slessons.“Weneedtogetthefactsoutabout mentfromtheObamaadministrationonthecontributionsofopen howopeninvestmentpoliciesbenefitordinarypeople,whilekeeping investmentpoliciestotheAmericaneconomy,Mr.Hormatssaidthe thepressureongovernmentstoresistprotectionistimpulses.” U.S.willseektocraftpoliciestosupportinvestmentbothinthis countrybyforeignfirmsandoverseasbyU.S.multinationals. Mostspeakersagreedthatbilateralinvestmenttreatiesareessen“We know that some overseas investments by American companies can lead to job losses in the United States. But for many companies,expansionabroadtendstosupportemploymentand dynamic opportunities here at home. For many, foreign affiliate activityhastendedtocomplement,notsubstitutefor,keyparent activity in this country, boosting wages, employment and capital investment.” tial to provide foreign investors with safeguards against political risk,whilemultilateraldeliberationsofinvestmentpolicycanprovide animportantsafetyvalvetoavoidapotentialprotectionistbacklash againstinvestment.

“Theworst-casescenarioshavenotbeenrealized–yet,”according to Angel Gurría, secretary general of the Organization for Economic Cooperation and Development, commenting on policies in theG20countriessincetheonsetoftheglobalrecession.Hesaid Later in March, USCIB and the Business Roundtable unveiled uptheOECD,whichcoordinateseconomicpoliciesamongthemost datedresearchbyDartmouthProfessorMatthew Slaughterthat advancedindustrialeconomiesandkeyemergingmarkets,planned further demonstrates the sizeable domestic returns of overseas toundertakeareviewofbilateralinvestmenttreatiesworldwidewith investmentbyU.S.companies,intermsofjobs,exportsandR&D. aviewtowarddevelopingbestpractices,orevenamodeltreaty. ThetwogroupspublishedresearchbyProfessorSlaughterlastyear thatwasdirectlyreferencedbyMr.Hormatsinhisremarks. Conference panels examined challenges to foreign investors in At the USCIB conference, a diverse array of speakers from business, government, international organizations, labor and NGOs addressed key challenges for foreign investment in the United States and other major markets. Most agreed that the terms of public debate over cross-border investment had changed in the wakeoftheeconomiccrisis,withwarinessinmanycountriesover certainaspectsofinwardFDIlargelygivingwaytoskepticismofthe valueofoutboundinvestmentforhomecountries. globalmarkets,investingingreentechnologies,foreigninvestment and jobs, and addressing societal problems. Speakers included David Rubenstein,managingdirectorofTheCarlyleGroup,Jim Quigley,CEOofDeloitteToucheTohmatsu,DeputyU.S.TradeRepresentativeMiriam Sapiro,ProfessorTed MoranofGeorgetown University,Thea Lee,deputychiefofstaffattheAFL-CIO,andMargrete Strand,directoroftheSierraClub’slabor,workerrightsand tradeprogram.ExecutivesfromChevron,Fedex,GoldmanSachs, Wal-Mart,GoogleandCadburywerealsoontheprogram.

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global network International Chamber of Commerce www.iccwbo.org

Revised ICC Trade Rules a Key Focus for 2010
By Jean Rozwadowski, ICC Secretary General
ThisyearwillbecrucialforICC aswepreparetolaunchthefirst revisionoftheUniform Rules for Demand Guarantees (URDG)in18yearsandthelatest versionoftheIncoterms®rules inSeptember.Thetwosetsof rulesweredevelopedfollowing severalyearsofcloseconsultationwithallconcernedparties andconfirmsICC’straditionalrole asthemajorrules-writingorganizationforbusiness.ICCrulesare globallyacceptedinthefieldsof banking,customs,marketingand tradefinance. Rules-writingisoneofthethree majorpillarsofICC’sworkalong withdisputeresolution(includinginternationalarbitration)and policymaking.Theglobalrules developedbyICCandusedby companiesincountlessbusiness transactionsallovertheworldset usapartfrommostotherinternationalbusinessorganizations. Inthiscontext,thereleaseofthe revisedURDGandIncotermsrules inthesameyearconstitutesa majorachievement. TheICCnationalcommittee networkwilldoitsutmostto promotethenewrulesbyholding trainingsessionsandseminars, andmarketingtherulesandtheir derivativeproductsthroughsuch platformsasICCBooksUSA (www.ICCBooksUSA.com), USCIB’sonlinebookstore.ICC headquartersinParisislaunching amajormarketingandcommunicationscampaigntopromote bothURDGandtheIncoterms rules,andwillworkcloselywith nationalcommitteestodisseminatetherulesaswidelyas possible. Uniform Rules for Demand Guarantees URDGaredestinedtoapplyto hundredsofbillionsofdollars ofdemandguaranteessecuringmonetaryandperformance obligationsinawidearrayof internationalanddomesticcontracts.Therevisedruleswere formallyadoptedbytheICC ExecutiveBoardatitsDecember meetinginNewDelhi. Theresultoftwo-and-a-halfyears ofintensiveworkbyadraftinggroupheadedbyGeorges Affaki,globalheadofstructured financeatBNPParibas,URDG werepreparedincoordination withtheICCBankingCommissionandtheICCCommissionon CommercialLawandPractice,in consultationwithUSCIBandmany othernationalcommittees.This collectiveefforthasbornefruitas ithasproducedrulesthatreflect abroadconsensusamongbankers,usersandallmembersofthe guaranteecommunity.Thenew rulesaredestinedtobecomethe internationalstandardfordemand guaranteepractice. Incoterms ThelaunchofIncoterms®2010 rulesisaneventofcriticalimportance,andwiththisnewedition ICCisagainfulfillingitsprincipal mandate–promotingcrossbordertradeandinvestment. Indeed,IncotermsandICChave alonghistory.ThefirstIncoterms rules,releasedin1936,were thefirstrealattempttobring coherencetoacommercialand judicialsystemthatatthetime divergedwidelyfromonecountry toanother. Theday-to-dayuseofIncoterms ininternationalsalescontracts bringslegalcertaintytobusiness transactionswhilesimplifyingthe draftingofinternationalcontracts. Theyareparticularlyimportant inthattheyhelptradersavoid misunderstandingsbyclarifying thecosts,risks,andtheallocationofcertainresponsibilitiesof buyersandsellersincontractsfor thesaleofgoods. Sincethelastrevisionin2000, muchhaschangedinglobal trade.Cargosecurity,forexample,isnowattheforefrontofthe transportationagendaofnumerouscountries.Thelatestversion oftheIncotermsruleswillreflect thesechangesandmanyothers. Inaddition,theU.S.Uniform CommercialCodewasrevised in2004,resultingindeletionof shipmentanddeliveryterms,for whichIncotermsprovideahandy substitute. Tounderlinetheimportanceof thenewIncotermsrulestoICC, USCIBisplanningamajorpublic launchinthefall.Trainingses-

USCIB at Your Service
ATACarnetExportService 1-800-5-DUTYFREE ICCArbitrationandDispute Resolution 212-703-5044 ICCBooksUSA 212-703-5066 USCIBPolicyandProgram 212-703-5062 USCIBPresident’sOffice 212-703-5049 USCIBMemberServices 212-703-5095 USCIBCommunications 212-703-5063 USCIBWashingtonOffice 202-371-1316 Visit www.uscib.org for a full list of staff including e-mail addresses (click “About USCIB”)

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washington wire Business and Industry Advisory Committee to the OECD www.biac.org Chile Signs Up As First OECD Member In South America ChilewillbecometheOECD’s 31stmemberanditsfirstin SouthAmericaunderaJanuary accessionagreementsignedin SantiagobyOECDSecretaryGeneralAngel GurríaandChilean FinanceMinisterAndrés Velasco.Chilewillformallybecomean OECDmemberonceitsparliamentratifiestheagreement. 2010 OECD Agriculture Ministerial Meeting Withbillionsmorepeopleto feed,worldfoodproduction willhavetorisebynearly50 percentinthenext20years. Thefarmingsectorwillalsobe facedwithdiminishinglandand waterresourcesandtheimpact ofclimatechange.Facingsuch criticalissues,agricultureministersfromOECDandseveral non-OECDcountriesmetinParis inFebruary.Inadvanceofthe ministerial,BIACmembersconsultedwithco-chairsNikolaus Belakovich(Austria)andDavid Carter(NewZealand). International Organization of Employers www.ioe-emp.org Employers Respond to the Jobs Crisis AFebruaryreportfromtheInternationalLaborOrganizationshowsthat employers’organizationshaveplayed amajorroleinworldwideeffortsto stemthedownturninemployment.The paperdescribesactiontakenby29 employers’organizationsworldwide withrespecttothecrisis.“Thepicture weobtainedfromthisreportprovides someillustrativeinsightsintohowemployers’organizationshaveresponded toitsnegativeconsequences,while pursuingopportunitiesforlongerterm positivechangewhichalsoriseintimes ofcrisis,”saidJean-François Retournard,directoroftheILO’sbureaufor employers’activities. IOE Marks 90 Anniversary
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Ambitious Export Goals Welcomed…
InhisStateoftheUnionaddress,President Obamasaidhe wantedtodoubleU.S.exportswithinfiveyears,winningapplausefromUSCIBandtwootherexport-orientedgroups.“We stronglysupportthePresident’sgoal,”saidUSCIBPresident andCEOPeter M. Robinsoninajointstatementwithhis counterpartsattheNationalForeignTradeCouncilandthe CoalitionforEmploymentThroughExports.“Workingwithour commercialpartnerstoreducebarrierstotradeandinvestmentisamutuallybeneficialwaytoachievethisgoal,andwill boosteconomicrecoveryandjobcreation.”Mr.Robinsoncited therecentagreementbetweentheCommerceDepartmentand USCIBtopromoteawarenessanduseoftheATACarnetsystem fortemporaryexportsamongsmallerexportersasanexample ofbeneficialpublic-privatepartnershipinsupportofPresident Obama’sexportambitions.

…But New “Buy American” Rules Would Kill Jobs
Additional“BuyAmerican”ruleswillcostthousandsofU.S. jobswhenourtradingpartnersretaliate,USCIBandanarrayof industryassociationstoldCongressinJanuary.Inajointletterto SenateMajorityLeaderHarry ReidandMinorityLeaderMitch McConnell,thebusinessgroupsalsosaidimposingnewrules wouldsignificantlydelaythedisbursementoffederalstimulus funds,andcouldresultinlower-qualityinfrastructureimprovements.ThelettercitedastudypredictingnetU.S.joblossesof morethan170,000astheresultofone“BuyAmerican”proposal currentlybeforeCongress.

ICC (cont’d)
sionstofamiliarizeuserswiththe revisedrulesareplannedaround theworld,includinganextensive seriesintheUnitedStatesled bylongtimeIncotermsauthority Frank Reynolds.ICCisalso developinganumberofderivative onlineproductsincludingeBooks andwebinars.

Thisyearmarksthe90thanniversaryoftheIOE,auniquefamilyof nationalemployerorganizationsfrom 141countriesaroundtheworld.“Ifa singlethemeweretocapturetherole andachievementsoftheIOEacross its90-yearhistory,itwouldbemeetingchallenges,”wroteIOEPresident Wiseman NkuhluofSouthAfricaina recentissueoftheIOE.netnewsletter. “TheIOEsuccessfullyglobalized,well beforethewordbecamefashionable, unitingemployersthroughouttheworld, progressivelywelcomingnewmembers fromallregions,andoperatingacrossa diverserangeofsystemsandcultures.” Mr.NkuhluwrotethattheIOE’sprincipal challengefor2010wouldremainthe impactoftheglobaleconomicand jobscrisis.“Enterprisesthroughoutthe worldcontinuetofacelevelsofadversityandriskunseenforgenerations,and struggletoremainviableandmaintain employmenttotheextentpossible.”

White House Urged to Reject New Iran Sanctions
Businessgroupssayattemptstoimposenewunilateraleconomic sanctionsonIranwillbackfire.InalettertoWhiteHouseeconomicadvisorLawrence H. SummersandNationalSecurity AdvisorGen.Jim Jones,USCIBandeightotherbroad-based industryassociationscriticizedlegislationbeforetheHouseand Senate,aimedatcurbingIran’sdevelopmentofnuclearweapons, thatwouldplaceseverecurbsonAmericancompanies’abilityto transactevenroutinebusinesswithforeigncompaniesdoingbusinesswithIran.“Theproposedsanctionswouldinciteeconomic, diplomatic,andlegalconflictswithU.S.alliesandcouldfrustrate jointactionagainstIran,”thebusinessgroupswrote.

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Getting the “Green” Message Right
New Framework for Environmental Marketing

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s more consumers consider environmental features important in their purchasing decisions, businesseshaveakeeninterestincommunicating the“green”attributesoftheirproducts.Gettingthe messagerightisfarfromeasy.Tohelpmarketers andadvertisersavoidthemistakesofvague,nonspecific or misleading environmental claims, the InternationalChamberofCommercehasproduced a new global Framework for Responsible Environmental Marketing Communications. LaunchedinJanuaryataUSCIB-organizedseminar in New York for marketing professionals and selfregulation experts, the framework responds to a callfromindustrystakeholdersforguidanceonhow to better engage in, and evaluate, environmental marketing communications to ensure consumer confidenceintheseclaimsissafeguarded. “Thenewframeworkhelpsmarketersandtheiragencies ensure the messages they develop hold up to the basic principles of truthful, honest and socially responsible communications,” said John Manfredi, chairoftheICCCommissiononMarketingandAdvertising.”Whiletheprinciplesaresimple,applyingthem, amidthehypeandfuryofnewclaimsandtermsthat

arenotuniversallyunderstood,ismorecomplicated. Thisguideisanattempttomapthatprocessforcompanies and provide a standard for self-regulators to evaluatewhenclaimsarequestioned.” Developed by the ICC Commission on Marketing and Advertising, the framework includes a practical checklist aimed at the creators of marketing communicationscampaignsaroundenvironmental claims, as well as a chart that provides an easy reference to relevant provisions of the global advertisingcodeandinterpretationsoncurrentissues relatedtoenvironmentalmarketing. The launch seminar featured a presentation of the new framework by Sheila Millar, Chair of the Commission’s Sustainability Working Group, along with an interactive discussion with panelists and participants based on examples that demonstrate how the framework tools can be appliedtoimproveadvertisingandavoidmisleading claims. Participants from the United States, Europe, Mexico and China discussed regional differences in approaches and the importance of consumer perception in the determination of whetheraclaimisusefulormisleading,aswellas

L-R:BillMacleod(KelleyDrye),OliverGray(EuropeanAdvertising StandardsAlliance),DavidMallen(NationalAdvertisingDivision), EveMagnant(PublicisGroup).

theimpactthatsymbols,imagesandcolorscan haveonthatdetermination. ICChasbeenamajorrule-setterforinternational advertising since the 1930s, when the first ICC code on advertising practice was issued. Since then,ithasextendedtheICCself-regulatoryframework on many occasions to assist companies in marketing their products responsibly. The new frameworkisacompaniontotheConsolidatedICC Code of Advertising and Marketing Communications,whichsetsforthgeneralprinciplesgoverningallmarketingcommunications.

WHEN YOU GET CLOSER YOU DON’T JUST HEAR VOICES, YOU HEAR HEARTBEATS.
For advertising opportunities, please contact Kate McVeigh on 212-275-6791

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Carnet Update:

What’s Up With VAT?
omeUSCIBstaffweresurprisedtolearnrecentlythatoneofthemost popular pages on our website (www.uscib.org) is a seemingly mundane tableofworldwidevalue-addedtax(VAT)rates,maintainedbyourATACarnet exportservice.Whatgives,theywondered? Ofcourse,everyonewhoworksforUSCIBknowsthatATACarnetsarecustomsdocumentsthatenableexportersandglobalcompaniestoavoidpaying dutiesandtaxes(includingVAT)ongoodstakenabroadtemporarilyfortrade shows,productdemonstrationsandasprofessionalequipment. IssuedandguaranteedbyUSCIBunderauthorityoftheU.S.government, Carnetsareessentialbusinesstools,usedbymembersandnon-members alike,savingtime,moneyandheadaches.Butstill,theVATratepage?What couldaccountforitspopularity? Enter Amanda Barlow, USCIB’s manager of Carnet development. “USCIB’s ATA Carnet department strives to stay current with essential trade-related information,” she explained.“OneexampleistheVATpage,whichwe createdtoprovideU.S.exporterswithballparkestimatesforinternationaltaxesandduties.” ItturnsoutthatasimpleCarnetcustomer-servicetool hadbecomesomethingofamini-Internetphenomenon. AccordingtoMs.Barlow,thepageisfrequentlyusedon manyeBaystorefrontsintheirinternationalshippingsec-

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tions.“Theycitethepageasanauthoritativeguideforbuyersonapplicable taxesandduties,tohelpeBayusersestimatefinalcostsoninternational transactions.” What’smore,manyU.S.onlineretailersnowroutinelyreferinternationalclientstoUSCIB’sVATchartasaguideforcalculatingthefinalcostoftheir purchases.Thecharthasalsobeencitednumeroustimes onblogsandwebsitesrelatedtoimporttaxes,dutiesand howtheyinfluencetheinternationaltradeofgoods. Carnet staff update the chart promptly as VAT rates changearoundtheworld,asaservicetocustomers. ThankstotheCarnetdepartment’sdiligentwork,the pagenowranksamongthetoptenmostpopularon theWebforVATinformation,accordingtoGoogle. Takeabow! The VAT page is available at www.merchandisepassport.org (click on “Value-Added Taxes” in the left navigation bar).

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member and staff news

New Working Group on Business Migration
The ability to move personnel across borders, as well as the impact of migration restrictions onbusinessoperationsandcompetitiveness,are key concerns for global companies. Responding tomemberinterest,USCIBisestablishinganew Working Group on Global Business Migration, to developandrepresentU.S.businessviewsinkey intergovernmentaldiscussionsonmigration. Labor migration has emerged as an important issue in international policy, especially since the establishment in 2007 of the Global Forum on Migration and Development (GFMD) to increase cooperation on migration policies. The GFMD includes 120 national governments and is chaired by Peter Sutherland, the UN’s special representative for migration (and chairman of BP and GoldmanSachsInternational). Business involvement in the early GFMD meetings was limited, as was awareness of industry concerns among participating governments. To helpaddressthis,theGFMDorganizedabusiness roundtable in advance of its 2009 meeting. At the roundtable, industry put forward a paper, “A Corporate Perspective on International Business Migration,” by Ellen Yost (Fragomen, Del Rey, Bernsen & Loewy) and Lynn Shotwell (AmericanCouncilonInternationalPersonnel).Asimilar roundtableisplannedinadvanceofthenextGFMD meetinginNovember2010. Other intergovernmental organizations, including the ILO and the WTO, have also begun lookingatissuesrelatedtobusinessmigration. In addition, the OECD held a high-level forum onmigrationinParisin2009,andplansaconference on entrepreneurship and employment creationforimmigrantsin2010.Thenewworkinggroupwilllikelyusetheaccessprovidedby USCIB’s global network to engage directly in thesediscussions. To join the new working group or for more information, contact Kate Whitelaw (kwhitelaw@ uscib.org).

New USCIB Members We are delighted to welcome the following companies and organizations as the latest additionstoUSCIB’sdiversemembership: BP America Tyco International Kimberly-Clark Corporation Bingham McCutchen LLP Chaffetz Lindsey LLP McCarthy Tétrault LLP North American Used Vehicles Exporters Association Qualcomm Siemens Corporation Silicones Environmental, Health and Safety Council of North America Silver Nanotechnology Working Group

USCIB Staff News
Changes are afoot in USCIB’s membership and business development staff. Abby Shapiro has been promoted to thepositionofSenior Vice President for Business Development, where she will spearheadourefforts to recruit new members and extend the integration of USCIB trade services for both members and AbbyShapiro non-members alike. Meanwhile,Alison Hoiemhasbeenpromotedto thepositionofManager,MemberServices,where shewillfocusonfacilitatingmember/staffconsultationonpolicyprioritiesandnurturingdialogue

To learn more about how USCIB membership can benefit your organization, contact Alison Hoiem (212-703-5095 or ahoiem@ uscib.org).

In Remembrance: Francis Blanchard
USCIB notes with sadness the passing in December of Francis Blanchard, director generaloftheInternationalLaborOrganizationfrom 1973 to 1989, at age 93. The ILO’s secondlongest serving chief, Mr. Blanchard presided overtheorganizationduringaneventfulperiod inhistory,whichincludedU.S.withdrawalfrom the ILO between 1977 and 1980. Under his stewardship, the ILO played an important role intheriseoftheSolidaritymovementinPoland.  He will be remembered with appreciation and respect by all the employer delegates who workedwithhim.

AlisonHoiem

withmembercontacts.Alisonisalsosupporting outreachtoprospectivemembers,whichhasresultedinseveralnewmembersinrecentmonths (see box).

10USCIBInternationalBusinessSpring2010www.uscib.org

upcoming events

2010 OECD International Tax Conference:
OECD-U.S. Business Dialogue on International Tax
June7-8,2010 WestinCityCenter Washington,DC TheOECD,USCIBandBIAC,incooperationwithseveralleading tradeandtaxorganizations,areproudtopresentthelatesteditioninthispopularannualseries,focusingontheOECD’snew internationaltaxationinitiativesandfeaturingtopspeakersfrom business,theOECDandtheU.S.government. The event provides a unique opportunity for U.S. business representativestointeractdirectlywithkeyrepresentatives from the OECD’s Center for Tax Policy and Administration aswellasseniortaxofficialsfromtheU.S.andotherOECD countries. For more information or to register for the conference, contact Erin Breitenbucher (202-682-7465 or ebreitenbucher@ uscib-dc.org), or visit www.uscibtax.org. For sponsorship information, contact Abby Shapiro (617-242-0205 or ashapiro@uscib.org).

Featured Speakers:
Jeffrey Owens – HeadoftheCenterforTaxPolicy &Administration,OECD Mary Bennett – HeadofTaxTreaty,Transfer PricingandFinancialTransactionsDivision,OECD Caroline Silberztein – HeadofTransferPricingUnit, OECD Jacques Sasseville – HeadofTaxTreatyUnit,OECD OtherseniorU.S.Treasuryand IRSRepresentatives

Key Topics:
•GlobalTaxAdministrationIssues •TransferPricing–Intangibles • ransferPricing–TheFutureoftheArm’s T LengthPrinciple •TaxReform/GrowthinOECDCountries •nformationExchangeIssuesofInterestto I MNEs • axationandDevelopment/Enlargementand T EngagementActivitiesoftheOECD • urrentTaxTreatyIssuesandHotTopics C inInternationalTax--including:Tradable Permits;BusinessRestructurings;VAT/GST; CollectiveInvestmentVehicles;Secondment ofEmployees;PermanentEstablishment

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calendar

april
7-8 7  9  13-14 14-15 20-21 21-23 26-27 27 30 Paris NewYork Paris Paris Paris Washington,DC Beijing Geneva Paris Paris Paris Paris Washington,DC NewYork Paris Washington,DC Toronto Paris Vilnius,Lithuania ICCCommissiononE-Business,ITandTelecoms USCIBIntellectualPropertyCommittee ICCCorporateResponsibilityandAnti-Corruption BIACEducationCommittee ICCEnvironment&EnergyCommission G20LaborMinisterial ICCBankingCommission ICCCommissiononIntellectualProperty ICCCommissiononTaxation BIACTaxationandFiscalPolicyCommittee ICCCommissiononArbitration ICCCommissiononTrade&InvestmentPolicy USCIBInformation,CommunicationsandTechnologyCommittee USCIBCompetitionCommittee BIACGeneralAssembly/ConsultationwithOECDMinisters 2  010OECDInternationalTaxConference G20Summit ICCCommissiononMarketingandAdvertising InternetGovernanceForum
International Businessis publishedquarterlybytheUnited StatesCouncilforInternational Business.Itisintendedforinformationaluseonlyandshouldnot beconstruedasanauthoritative statementofUSCIBviewsor policy. We welcome your comments and submissions E-mailthemtonews@uscib.org orsubmitbymailto:Editor, InternationalBusiness,United StatesCouncilforInternational Business,1212Avenueofthe Americas,NewYork,NY10036. Visitwww.uscib.orgorseeour monthlye-newsletter,“What’s NewatUSCIB,”forthelatest newsandinformationfromUSCIB andourglobalbusinessnetwork. USCIBmembersmayalsovisit ourpassword-protectedMembers Onlysectiontoreviewmaterials fromUSCIBcommitteesand otherexclusiveinformation. How to subscribe: USCIBmembersmayrequestthis publicationfreeofchargebycontactingUSCIBMemberServices (212-703-5095,membership@ uscib.org).Non-membersmay subscribetothisandotherUSCIB printpublicationsforanominal feebycontactingUSCIBCommunications(212-703-5063,news@ uscib.org). Editor: JonathanHuneke,VPcommunications&publicaffairs,USCIB United States Council for International Business 1212AvenueoftheAmericas NewYork,NY10036 Tel:212-354-4480 Fax:212-575-0327 Web:www.uscib.org Copyright©2010UnitedStates CouncilforInternationalBusiness. Allrightsreserved.

may
4-5 5  Global Business Leadership as the U.S. Affiliate of:
InternationalChamber ofCommerce

6  20 26-28

june
7-8 26-27 28-29

september
BusinessandIndustryAdvisory CommitteetotheOECD

14-17

Please visit www.uscib.org/calendar.asp for a full list of upcoming events.

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