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Internationalbusiness JOURNAL OF THE UNITED STATES COUNCIL FOR INTERNATIONAL BUSINESS SPRING 2014 VOL. XXXVI, NO. 1 INTERNATIONALBUSINESS Inside Responsible marketing 4 UN development goals 5 Supreme Court rules on arbitration 12 Building Prosperity in the Digital Age page 3 the first Peter M. Robinson, President and CEO, USCIB word It’s not just governments that determine international trade and investment standards – the International Chamber of Commerce has been doing so for over 80 years. Setting the Rules of the Road in Cross-Border Commerce From time to time, I like to showcase the activities of our global business avoid legal uncertainty by spelling out clear responsibilities between buyers network. As most readers know, USCIB is the American affiliate of three and sellers in cross-border sales contracts, and have been endorsed by worldwide business groups: ICC, the International Chamber of Commerce; the UN Commission on International Trade Law. These terms, such as FOB IOE, the International Organization of Employers; and BIAC, the Business (Free on Board), are regularly incorporated into sales contracts worldwide and Industry Advisory Committee to the OECD. This network is part of what and have become part of the daily language of trade, the backbone of makes USCIB a uniquely valuable platform for our business members, and a global commerce. vital source of industry views for policy makers. While little known outside the trade finance community, ICC’s Uniform ICC is the oldest of these groups, the “world business organization,” with Customs and Practices for Documentary Credits, known as UCP national committees and direct members in over 130 countries around the 600, and related rules were first issued in 1933 and have been updated world. ICC performs three essential functions: policy advocacy on behalf of and adapted regularly to provide essential standards and templates to global business, arbitration of cross-border commercial disputes, and rules- lenders and borrowers looking to arrange letters of credit and other setting. It’s this last role that I want to address in this column. financing for exports and imports. ICC’s Banking Commission, which establishes and monitors these crucial rules, includes hundreds of trade At the heart of international trade are rules, norms, standards and tools finance professionals from around the world, with strong USCIB member that help facilitate the daily flow of global commerce. Through its longstand- participation. Its next semi-annual meeting takes place this November ing rules-writing function, ICC has developed a large array of standards, in Istanbul. codes, voluntary rules and guidelines to facilitate business and foster best practices. These rules help reinforce business self-regulation becoming the Based on industry need, ICC also authors various model contracts, standards by which industry agrees to conduct its business. They provide an guidelines for certificates of origin, and provides guidance on corporate invaluable service to companies around the world and are used in billions of anti-bribery measures. The USCIB International Bookstore offers many dollars’ worth of transactions annually. of these trade publications. (Coming soon: Using Franchising to Take Your Business International.) Visit www.internationaltradebooks.org to learn This rule-making started soon after ICC was founded in 1919. In fact, in more about these essential titles. the interwar period – when there was no GATT or World Trade Organization – ICC acted as a real international path-breaker, developing rules of the USCIB members play leading roles in all of these ICC rules-setting exercises. road on trade that effectively paved the way for later, binding agreements But of course, you don’t need to be a member to take advantage of these by governments following World War II. tools. Companies large and small, all over the world, use and abide by ICC’s rules of the road. (Naturally, if you want to have a hand in developing them, Examples of this critical rule-making include the Consolidated ICC Code of you need to be a member of USCIB.) It’s just another example of the essen- Advertising and Marketing Communications. First developed in 1937, tial role played by the world business organization in the increasingly vibrant and most recently revised in 2011, the ICC marketing code is the most and integrated world of international trade and investment. widely recognized model for national self-regulation of ad standards around the world. With rigorous standards on a variety of marketing practices and issues, it most recently served as the basis for new global guidelines on alcohol marketing and digital ad placement (see page 4). ICC’s International Commercial Terms, known as Incoterms®, are another example. First developed nearly 80 years ago, these shorthand terms help Contact Peter Robinson at (212) 703-5046 or [email protected]. 2 USCIB International Business Spring 2014 www.uscib.org cover story Growth, Jobs and Prosperity in the Digital Age Policies affecting the development and where growth will come from in the decade use of information and communications tech- to come.” nologies (ICTs) are evolving quickly around Wyckoff joined a roster of speakers from the world. At the same time, ICTs now consti- government, industry and the OECD that tute a fundamental building block for global reviewed the latest technological and policy growth, competitiveness and job creation. developments in digital privacy, big data, This was the backdrop for a major confer- cloud computing and other emerging tech- ence in Washington, D.C., “Growth, Jobs and nologies, and considered how these could be Prosperity in the Digital Age: OECD Shapes leveraged by policy makers to achieve maxi- the Policy Environment,” held in March at the mum growth, innovation and employment. Microsoft Innovation & Policy Center. The These included: Diego Molano Vega, Co- event was organized by the USCIB Founda- Diego Molano Vega, Colombia’s minister of information technologies and com- munications, was among the speakers at the conference. lombia’s minister of information technologies tion, together with OECD and its Business and communications; Commissioner Julie and Industry Advisory Committee. Brill of the U.S. Federal Trade Commission; and Liesyl Franz of the U.S. Participants discussed how emerging technologies create the potential for Department of State’s cyber issues office. greater efficiencies, new business opportunities, economic growth and job “As work to revive our economies continues, the digital economy provides creation, as well as risk-based approaches to privacy and security. They a powerful tool to improve productivity, increase innovation and growth, as also considered the trade policy dimension, including how cross-border data well as create new jobs,” said Jorgen Abild Andersen, chair of the OECD’s flows are regulated under existing trade rules, and how this could change. Committee on Digital Economy Policy. “The OECD is committed to bringing And they considered the contributions of the OECD, including its 2008 together governments and key stakeholders to develop policies to support “Seoul Declaration,” in helping to shape Internet and ICT policies that sup- a flourishing digital economy.” port growth, innovation and broad societal benefits. Joseph Alhadeff vice president and chief privacy officer with Oracle “The multi-stakeholder approach is a linchpin of the OECD’s work on ICTs Corp., who serves as chair of BIAC’s Committee on Information, Com- and the Internet,” said Andrew Wyckoff, director of the OECD’s Directorate munications and Computer Policy and vice chair of USCIB’s ICT Policy for Science, Technology and Industry. “This approach has served to inform Committee, said: “In light of recent economic developments, it is under- our role as a shaper of international dialogue, as a provider of comparative standable that policy makers are taking a renewed look at how best to cross-border data and evidence, and as a forum for sharing experiences and ensure ICTs can continue to meet broad economic and societal needs. collective learning.” “This program served to underscore the important role that OECD policy Wyckoff reflected on the OECD’s role in creating policy consensus among frameworks and economic analysis play in providing needed facts and governments, business and the wider Internet community. He said the guidance that assist both business and regulators in developing the poli- OECD’s Internet Policy Making Principles represent a “common philosophi- cies that help foster continued growth and evolution of the global digital cal approach” to Internet policy making. “This is essential,” he said. “This is economy and information society.” U.S. to Transition Internet Domain Functions Reaction was muted to the March announcement by the National Telecommunications and Information Administration (NTIA) that it intends to transition key Internet domain name functions. But USCIB said it looked forward to a promised multi-stakeholder dialogue that ICANN and the Internet community will convene to develop productive responses that meet NTIA’s criteria. “We especially applaud NTIA’s resolve to ‘maintain the security, stability and resiliency of the Internet Domain Name System’ and not to ‘accept a proposal that replaces the NTIA role with a government-led or an inter-governmental organization solution,’” said USCIB President and CEO Peter M. Robinson. USCIB has been a stalwart supporter of the multi-stakeholder model for Internet governance. “We
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