Journal of the Council for International Business Spring 2008 Vol. XXX, No. 1 InternationalBusiness Celebrating 30 Years of Publication!

Business Action to Stop Counterfeiting and Piracy page 3

Inside

Emerging investment challenges 2

Addressing forced labor 4

A passport for goods 9

Vivendi Chairman Jean-René Fourtou and other BASCAP leadersUSCIB meet International in the UnitedBusiness States Spring 2008for the www.uscib.org first time 1to weigh new weapons in the global fight against fake products the first Peter M. Robinson, President and CEO, USCIB word

Policy makers must come to terms with both sovereign wealth and subsidized takeovers. New Financial Challenges on the Horizon

Government-controlled investors – including sovereign wealth funds and A new study from the United States Council Foundation, USCIB’s research state-owned enterprises – have gained a sizeable influence in international and educational arm, investigates several recent cases of subsidized finance business and finance. The total value of sovereign wealth worldwide already in cross-border M&A transactions, and suggests corrective measures that amounts to several trillions of dollars, and it is expected to multiply many should be taken to head off the possibility of protectionist overreaction to times over during the coming decade. subsidized investments. The paper, “Investment Subsidies for Cross-Border M&A: Trends and Policy Implications,” is authored by Gary Hufbauer and This raises unique public policy issues: sovereign investors may provoke Thomas Moll of the Peterson Institute for International Economics, and national security concerns, spur fears of market volatility and financial in- Luca Rubini of the Birmingham Law School (UK). stability, or generate protectionist pressure on governments. What to do? In recent months, USCIB has been an important forum for discussion of this According to Dr. Hufbauer, who detailed the report’s findings at the National and related issues. Press Club in April, while subsidized M&A or non-transparent sovereign wealth dealings do not pose a “clear and present ,” they merit thoughtful A two-pronged approach consideration well before a political confrontation occurs. In February, at the Bank of New York Mellon’s Wall Street headquarters, Deputy U.S. Trade Representative John Veroneau spelled out for a USCIB The study examines three recent instances where subsidized finance was audience how the United States is working closely with other countries, both seen or alleged to have played a significant role in an M&A transaction: the those that make and those that receive sovereign investments, to anticipate Chinese state-owned oil firm CNOOC’s bid for Unocal, the purchase of several and manage concerns over sovereign wealth funds. Ingersoll-Rand divisions by Korea’s Doosan Infracore and moves by Electricité de to expand into a number of new markets abroad. Ambassador Veroneau explained that the U.S. is working with major multilat- eral institutions – including the IMF and the OECD – to develop best practices Dr. Hufbauer and his co-authors contend that subsidized M&A, if not re- for sovereign wealth funds, promote strong international standards of trans- strained by agreed international rules, might breed costly, wasteful emulation parency and corporate governance, and maintain open, transparent, and as well as protectionist sentiment in major markets – not least the United non-discriminatory investment policies among all countries. States – especially when viewed against the sensitivities raised by the growth in sovereign wealth funds. A new OECD report, prepared at the request of G-8 finance ministers, pro- vides policy guidance for recipient countries. A complementary effort in the Move toward a new treaty IMF aims to develop best practices of transparency and accountability for The appropriate response, they say, is to move toward a multilateral compact sovereign wealth funds. Together, these two projects are designed to build on M&A subsidies. Such a pact would be designed to increase government confidence in sovereign investment as a source of much-needed capital, to transparency, while drawing a line around what types of subsidies would keep markets open and to resist financial and investment . spur review and limiting the types of retaliatory actions governments could use to counter subsidies. The authors suggest this year’s Group of Eight As we go to press, we look forward to May 8, when Deputy Treasury Secre- summit in as an appropriate forum to begin discussions of such a tary Robert Kimmitt is scheduled to review progress on these and related multilateral agreement. issues with USCIB members in New York. We believe this new study highlights an important issue for future consider- A related challenge ation by USCIB members and the policy community. Together with our recent At the same time, the attention of policy makers is likely to turn to a related, programs on sovereign investment, it is yet another example of the way but under-appreciated, issue: subsidized foreign takeovers of U.S. compa- USCIB can serve as your advance-warning mechanism, anticipating tomor- nies. What are the implications when a foreign company, backed by financial row’s issues today. support from its home government, purchases a U.S. firm? And what actions should be taken to ensure a level playing field while maintaining fundamental market openness?

Contact Peter Robinson at (212) 703-5046 or [email protected].

2 USCIB International Business Spring 2008 www.uscib.org cover story

New Tools to Fight Counterfeiting and Piracy BASCAP leaders meet in New York with key government officials to plan a joint assault

At a March 3 high-level gathering in New York, industry leaders from around the world unveiled new strategies to combat counterfeit- ing and piracy, including a set of urgent recommendations for a global anti-counterfeiting pact being negotiated by major trading countries. The CEOs also announced plans for a ground-breaking consumer ed- ucation campaign that will take a global approach to building aware- ness of the damages caused by counterfeiting and piracy.

Top members and allies of BASCAP met in New York. L-R: Andreas Fibig (Pfizer), Michael Senior executives involved in the International Chamber of Com- Keplinger (World Intellectual Property Organization), Pat Heneghan (British American merce’s BASCAP (Business Action to Stop Counterfeiting and Tobacco), Doug Morris (Universal Music), Marc-Antoine Jamet (LMVH), Jean-René Four- tou (Vivendi), Kevin Havelock (Unilever), Michel Danet (World Organization), Piracy) initiative met at the St. Regis Hotel with the U.S. Trade Rep- Jean-François Dehecq (Sanofi-Aventis), Blair Westlake (), Bob Wright (General Electric), David Iakobachvili (WBD Foods), Guy Sebban (International Chamber of Com- resentative Susan Schwab, along with top representatives of the merece), Alan Drewsen (International Trademark Association). Not pictured: Nobuyuki World Customs Organization (WCO) and World Intellectual Property Idei (Quantum Leaps) and U.S. Trade Representative Susan Schwab. Organization (WIPO), to agree on joint efforts to tackle counterfeit- Ambassador Schwab stated: “With ACTA we are aiming to set a ing and piracy. The CEOs called on Ambassador Schwab to move new, higher international standard for intellectual property rights quickly towards completing the Anti-Counterfeiting Trade Agree- enforcement, one that addresses today’s challenges. Private-public ment (ACTA) in cooperation with its trading partners, and pledged collaboration is a vital component in the fight against counterfeiting their support to work with WCO and WIPO. and piracy. That’s why we welcome BASCAP’s support and contin- ICC has pushed for business to become more involved in develop- ued input as we move forward.” ing ACTA, which was introduced in October by the U.S., European A Call for G8 Action Union, Japan, , , and other countries. BASCAP executives expressed concern that little concrete action The new agreement would focus on filling the gaps not covered has been taken on promises made at G8 meetings in 2006 and by existing multilateral agreements, including stronger enforcement 2007. “Today we are calling on G8 leaders to respond to the rec- measures, improved international cooperation and a strong legal ommendations by BASCAP prior to the Summit in last framework for intellectual property protection. year by taking immediate actions to shut down flagrant counterfeit “It is a positive step and very encouraging that the U.S., EU, Japan markets and to work with us to find appropriate steps on other and many other major developed countries have recognized the recommendations,” said Nobuyuki Idei, BASCAP co-chair, repre- need for a new multilateral agreement dealing with this critical sentative director of Quantum Leaps Corporation and former CEO issue,” said Bob Wright, vice chairman and executive officer of of Sony Corporation. General Electric and co-chair of BASCAP. BASCAP will launch country-based action centers to leverage local business voices and push for tangible actions at the national level. The initiative will begin this year with Canada, Germany, the UK, , and the United States.

Border control will be a critical element in strengthening each coun- try’s intellectual property enforcement regime. Business leaders pledged to support the World Customs Organization’s latest plans to strengthen customs efforts to stop the flow of counterfeit goods across borders.

“Counterfeiting and piracy continue to increase at an alarming rate,” cautioned WCO Secretary General Michel Danet. “We have to invent our own future. It’s time to step up our action in collabora- U.S. Trade Representative Susan Schwab with USCIB President Peter M. Robinson prior to the BASCAP meeting. tion with the private sector, and the time is now.” continued on page 5

USCIB International Business Spring 2008 www.uscib.org 3 Confronting the Unseen Face of Forced Labor

Seeking to build greater awareness of the thorny problem of forced labor, stakeholders from business, government, NGOs and major internation- al organizations gathered at a February 20 conference in Atlanta to explore how the private sector should address this complex issue in company opera- tions and supply chains.

The event, entitled “Engaging Business: Addressing Forced Labor,” was held at the headquarters of the Coca-Cola Company. It was sponsored by USCIB, the U.S. Chamber of Commerce and the International Organization of Employ- ers, in cooperation with the International Labor Organization. Hundreds of families with young children work and live in these While child labor is relatively easy to identify, forced labor can be a more brickyards near Islamabad - often under conditions of bonded labour. complex issue, especially in an era of lengthy supply chains. “It is to find (Photo: ILO) workers under lock and key, or physically forced to work under threat of vio- lence,” according to an ILO briefing paper prepared for the conference. “But “The unprecedented movement of labor and capital in chains of production of there are a range of more subtle forms of constraint – such as inducing work- exportable goods promises many advances. But without rule of law and good ers into severe indebtedness, confiscating identity documents of migrant corporate citizenship, it also could lead to modern day slavery.” workers, or deliberate non-payment of wages – which can be considered as Participating executives agreed, and said they appreciated the threats posed forced labor practices under national laws or international standards.” by forced labor. “Companies in industries ranging from clothing to food pro- Forced labor is the subject of widely ratified ILO core conventions and is one cessing to electronics are suffering reputational and business damage from of the principles of the ILO’s 1998 Declaration on Fundamental Principles and allegations related to forced labor, human trafficking and child labor,” said Rights at Work. And while many codes of conduct at the company, industry Ed Potter, director of global workplace rights with Coca-Cola. “Our goal as and global levels reference forced labor, it has only recently gained attention a company is to continue to build our reputation as a recognized workplace in the business community as an issue that requires priority attention. human rights leader that can materially impact the sustainability of local com- munities where we do business.” The meeting, which attracted some 80 participants, drew on the experience and knowledge of a cross-section of multinational business and employer asso- For more information or to get involved, contact Adam Greene ciation participants in helping to formulate a global strategy for employers that (212-703-5056, [email protected]) can be used to identify forced labor, to provide means for its elimination and to give guidance on its remediation. Participants reviewed a series of company Report: “Trends in the Workplace 2008” case studies highlighting innovative solutions to eliminate forced labor. A new worldwide survey by the International Organization of Employers The need for collaboration was a key theme of the indicates policy makers need to adapt more effectively to changing global full-day session. “No single business, nor all busi- labor markets. The IOE’s “Trends in the Workplace 2008” provides com- nesses together, can eliminate the evil of forced parative data between countries and regions on current labor market labor,” Neville Isdell, Coca-Cola’s chairman and issues and trends from the employer perspective. With this annual publi- CEO, told conference-goers. “It requires the coming cation, the IOE aims to regularly inform policy makers on key labor issues together of the triumvirate of governments, civil so- and trends likely to impact the world economy. Prominent factors impact- ciety and business.” ing labor markets identified by the survey include:

Mark Lagon, director of the State Department • More women and migrants working than ever before office charged with combating human trafficking, • Growing demand by employees for more flexible working arrangements spoke at the event, urging companies to exert lead- • Major labor market implications resulting from demographic changes ership on the issue. Coca-Cola CEO Neville • Lack of skills among new workers in emerging markets Isdell spoke at the confer- ence: “No single business, “Our message must be unambiguous and clear: • Need for better cost/benefit analysis of labor and social legislation. nor all businesses togeth- er, can eliminate the evil of both the public and private sector have zero toler- forced labor.” ance for forced labor of any kind,” said Mr. Lagon. “Trends in the Workplace 2008” is available at www.ioe-emp.org.

4 USCIB International Business Spring 2008 www.uscib.org Top U.S. Official Examines Challenges of Global Sovereign Investment

The recent surge in U.S. investment by overseas sovereign wealth funds Amb. Veroneau conceded that, given the growing economic significance of should spur efforts to develop best practices for such funds, while ensuring sovereign wealth funds and other sovereign investors, “a closer look at the that major markets continue to welcome this much-needed source of capital, objectives and consequences of their investments is warranted.” But he said Deputy U.S. Trade Representative John Veroneau told a USCIB audience in such examination should bear in mind the importance of cross-border invest- New York on February 26. ments from all sources for job-creation, economic growth and productivity.

“It is essential that governments and sovereign investors take complemen- To help allay fears that sovereign investment might be used for political or tary steps to mitigate calls for measures that could have the effect of limiting other non-commercial purposes, the Treasury Department last year called the benefits of commercial investments by such investors,” Ambassador Ve- upon the International Monetary Fund, with the support of the World Bank, to roneau stated in remarks delivered at The Bank of New York Mellon’s Wall develop best practices for sovereign wealth funds, building on existing best Street headquarters. practices for foreign exchange reserve management, noted Amb. Veroneau.

Established sovereign wealth funds from Abu Dhabi, and “Such ‘best practices’ would serve to demonstrate that sovereign wealth funds have been joined on the world stage by new actors from the Middle East, can continue to be responsible, constructive participants in cross-border in- China, Russia and elsewhere. Often flush with rising oil and other export rev- vesting,” he stated, observing that the United States had also called upon the enues, sovereign investors have taken significant equity stakes in a number Organization for Economic Cooperation and Development to identify best prac- of major financial institutions and other companies at a time when the credit tices for countries receiving foreign government-controlled investment, as a squeeze in many markets is drying up other sources of investment. This has safeguard against the adoption of protectionist measures. led some observers to question the motivations of sovereign investors and call for new scrutiny of their actions. For more information on this issue, contact Stephen Canner in USCIB’s Washington office (202-682-1221, [email protected]). Employers Cement Ties to World Bank

Top representatives of global employers met with World Bank President USCIB. It included Antonio Peñalosa, secretary general of the IOE, Ashraf Robert Zoellick and other bank officials on February 15 in Washington, Tabani, president of the Employers’ Federation of , and Ronnie D.C. to voice support for the bank’s annual “Doing Business” reports, which Goldberg, executive vice president of USCIB, among others. assess and rank countries based on how easy they make it to run a business, and to explore areas for future cooperation. Participants discussed how the World Bank should integrate employment and labor issues in future reports, and explored areas for future cooperation. Joining The delegation from the International Organization of Employers (IOE) was led Mr. Zoellick from the World Bank were Michael Klein, vice president for financial by IOE President Abraham Katz, who also serves as president emeritus of and private sector development, and Simeon Djankov, who leads the team developing the Doing Business reports, along with several team members.

cover story continued from page 3 The two organizations are New Consumer Education Campaign looking to work with nation- al employers’ organizations BASCAP today also announced plans for a new consumer awareness and in the collection of data for education campaign that could be used by ICC’s national committees and the yearly Doing Business brand protection groups to spell out the dangers of counterfeit and pirated reports. Building on the goods. BASCAP announced plans to work with WIPO and seek out other success of last Septem- government partnerships on the campaign. ber’s launch of the 2008 “We cannot afford to ignore the far-reaching and acute threats posed by the report at a USCIB forum in spread of counterfeiting and piracy,” said WIPO Deputy Director Michael New York, they also plan Keplinger. “A coherent global response requires coordination and coop- forums with IOE members eration among all stakeholders: governments in developed and developing in major regional hubs. countries, intergovernmental institutions, the private sector and consumers.” For more information, The BASCAP Global Leadership Group includes some of the world’s largest contact Adam Greene companies. The March meeting marked the third time the group had met (212-703-5056, since the cross-sector initiative was launched by ICC in 2005. L-R: IOE President Abraham Katz, World Bank [email protected]). President Robert Zoellick and IOE Secretary General More on BASCAP: www.iccwbo.org/bascap Antonio Peñalosa.

USCIB International Business Spring 2008 www.uscib.org 5 global network

International Chamber International Organization of Commerce of Employers www.iccwbo.org www.ioe-emp.org

Economy Key to Reaching ing in one global Internet. The U.S. Employers Promote Climate Goals, ICC tells UNEP government has overseen ICANN’s Closer Ties in Balkans ICC led a prominent business activities from its formation in 1998, Business is taking the lead in pro- delegation to the and the transition from the cur- moting cooperation in the Balkans, Environment Program (UNEP) 10th rent Joint Project Agreement (JPA) including establishing a regional Special Session of the Governing between the U.S. government and center where nations in this often Council/Global Ministerial Environ- ICANN to a private-sector entity with fraught region can constructively ment Forum and Global Civil Society a multi-stakeholder model of leader- explore projects to attract foreign Forum, held in March in Paris. ship is currently under review. ICC’s investment and foster regional part- The meeting sought agreement to contribution urged a substantive nerships. Recent events have shown UNEP’s medium-term strategy, which discussion regarding the transi- that the political situation between will be used in formulating strategic tion of ICANN to ensure a strong, countries in the region remains frameworks and work programs independent and private sector-led delicate. But while cooperation may through 2013 for addressing climate approach. “Businesses in all sec- be limited at the intergovernmental change. Because of its work bring- tors are affected by the functions level, there is growing cooperation ing together all stakeholders, ICC and decisions of ICANN and have between national business associa- involvement is crucial to help build a vested interest in the evolution tions. Recently the leading national an international consensus for ef- of this organization,” said Gordon employers’ organizations from Al- fectively addressing environmental Moir (British Telecom), chair of ICC’s bania, Bosnia-Herzegovina, , risks. Ministerial discussions were Task Force on Internet and Telecoms Macedonia, and also held on financing climate action Infrastructure and Services. set up a regional center, the Adriatic and on international environmental Region Employers’ Center, under governance. Throughout the week, Overseas Chambers Win the auspices of the IOE with financial Sponsorship to U.S. Convention ICC showed how business was support from the Swiss government. already globally engaged in deliv- The Greater Pittsburgh Chamber of The center will promote joint projects, ering solutions to environmental Commerce is offering to sponsor 10 cooperation and exchange of informa- challenges. ICC illustrated how its delegates from ICC’s World Chambers tion between partners in the region. members are actively involved in Federation (WCF) to attend the main It will also represent regional employ- USCIB at Your Service tackling climate change and improv- annual conference of American cham- ers’ interests to multilateral bodies bers of commerce, which will be held ATA Carnet Export Service ing resource efficiency. such as the International Labor in Pittsburgh from July 30 August 2. 1-800-5-DUTYFREE Organization and the World Bank. Business Makes The American Chamber of Commerce ICC Arbitration and Dispute Recommendations for Executives (ACCE) said its convention Resolution ICANN’s Transition offers excellent networking opportuni- 212-703-5044 In February, ICC submitted global ties as well as valuable experience. ICC Books USA business views on the transition “We value our relationship with ACCE 212-703-5066 of the Internet domain name and and appreciate this opportunity for USCIB Policy and Program addressing organization from the our members to experience first- 212-703-5062 current United States government hand American chambers in action,” oversight to a private-sector, multi- said WCF Chairman Rona Yircali. USCIB President’s Office stakeholder model of leadership. To Candidates must be from non-U.S. 212-703-5049 reach another person on the Internet chambers and will have the chance to USCIB Member Services you need to type a unique address win one of 10 “scholarship” packages 212-703-5064 into your computer, either a name or that include entry to all convention USCIB Communications a number. The Internet Corporation tours and events, several meals and 212-703-5063 for Assigned Names and Numbers receptions, and four nights’ accom- USCIB Washington Office (ICANN) coordinates these unique modation – an estimated value of 202-371-1316 identifiers across the world, result- $2,500 (U.S.). Visit www.uscib.org for a full list of staff including e-mail addresses (click “About USCIB”)

6 USCIB International Business Spring 2008 www.uscib.org A USCIB paper looks at how inter- washington national trade rules may impact wire limits on carbon emissions

Business and Industry Advi- sory Committee to the OECD www.biac.org

BIAC Opposes New Regulations is intended as a work in progress A Green Light for decision not to adhere to the Kyoto on Sovereign Wealth and it will be updated periodically. “Green” Tariffs? Protocol. It is an update of a 2002 “Governments must avoid hastily BIAC welcomes comments and Are efforts to limit greenhouse gas paper issued soon after the Bush conceived new regulations on sover- additional information that would be emissions under agreements like administration announced its intention eign wealth funds in their efforts to appropriate to be included in the the Kyoto Protocol compatible with not to sign the Kyoto agreement. diminish recent rising public criticism guide. Of particular interest are tools rules? “When we published our original against these investment vehicles,” which provide practical help to com- As Congress and many European paper six years ago, the issue was said BIAC Secretary General Tada- panies concerning implementation policy makers weigh the imposition largely speculative,” said Timothy E. hiro Asami on the eve of a March of effective corporate procedures of “green” border to punish Deal, USCIB’s senior vice president conference on “Sovereign Wealth against bribery and corruption. more carbon-intensive products from and the author of the study. “Back Funds in the Global Investment Land- abroad, a USCIB report issued in 2008 OECD then it was mainly NGOs like Green- scape,” hosted by the OECD and January raises troubling questions Environmental Outlook peace and Friends of the Earth that the City of London with participation about WTO rules and jurisprudence were pushing for a climate border by the International Monetary Fund. “Solutions to the key environmental and their possible application to as a way to punish the U.S. and Mr. Asami highlighted the OECD challenges are available, achiev- climate policy. other non-Kyoto signatories. Now we business community’s concern that able and affordable, especially The study examines whether countries have politicians on both sides of the unnecessary regulations could be when compared to the expected might decide the U.S. has an unfair Atlantic talking more openly about used as a cover for protectionism economic growth and the costs and trade advantage as the result of its some form of carbon tax regime.” and thereby restrict freedom of consequences of inaction,” OECD continued on page 10 international investment. “Increased Secretary General Angel Gurría international co-operation, transpar- said at March’s worldwide launch of the 2008 OECD Environmental Out- ency and governance are the keys USCIB Website News Briefs to successfully alleviating fears look in Oslo, hosted by Norwegian Visit the Web links for more on these other important stories from USCIB. and building the trust necessary to Prime Minister Jens Stoltenberg. The 2008 OECD Environmental permit the positive contributions A Plea for Leadership on Trade Outlook marries economic and that SWFs can provide to our econo- Leading U.S. business organizations have urged ratification of pending bilat- environmental projections for the mies.” eral trade agreements and the successful completion of the Doha Round. next few decades and simulates www.uscib.org/docs/2008_02_11_trade_statement.pdf Online Anti-Bribery specific policies to address the key Resource Guide challenges. It identifies four priority Concern Over “Online Freedom” Bill A new BIAC Anti-Bribery Resource areas where urgent action is needed: USCIB has joined other industry groups in expressing concern over the Guide, developed by the BIAC Task climate change, biodiversity loss, Global Online Freedom Act currently before the House of Representatives. Force on Anti-Bribery and Corrup- water scarcity and the impact on www.uscib.org/docs/2008_02_28_GOFA_letter.pdf human health of pollution and toxic tion, makes available to business Supreme Court Urged to Review Apartheid-Era Liability Ruling chemicals. “The Outlook is an im- associations and companies relevant Business groups want the high court to review a massive lawsuit alleging pressive body of work,” said Prime instruments and initiatives in the field corporate liability for human rights abuses in apartheid-era . of anti-corruption which define legally Minister Stoltenberg. “It combines www.uscib.org/index.asp?documentID=3779 binding obligations on states and hope for the future with an urgent companies, reflect relevant commit- call for action today. It offers impor- Industry Objects to Loss of “First Sale” Rule ments against bribery and/or offer tant guidance for decision-makers USCIB and other industry groups objected to plans by U.S. Customs and guidance and assistance to compa- and integrates economic and envi- Border Protection to eliminate the “first sale” rule on valuation of imports. nies in their fight against bribery and ronmental analysis.” www.uscib.org/docs/First_Sale_Letter_to_Secretary_Chertoff_2-11-08.pdf corruption. The guide includes tools Saving Our Oceans that have been developed by BIAC Writing in the New York Times, USCIB and the marine conservation group members and other business organi- Oceana unite in targeting government subsidies that promote massive zations. Available at www.biac.org/ over-fishing. pubs/anti-bribery_resource/guide. www.nytimes.com (Letters, January 29) htm, the Anti-Bribery Resource Guide

USCIB International Business Spring 2008 www.uscib.org 7 member and staff news USCIB Membership Report Work on Key Legal Issues Spurs Outreach to Corporate Counsel By William Martin

In Memoriam: Bill Eberle, Christopher Phillips We were deeply saddened to learn of the death Members know that USCIB covers a comprehensive set of international of William D. Eberle, the U.S. trade representa- policy issues that truly makes us a “one-stop shop” for international advocacy. tive in the 1970s who later served as president As such, we touch many different areas of a corporation, including depart- of USCIB and remained actively engaged with us ments such as government affairs, environment, health and safety, tax, legal since then. Mr. Eberle passed away on April 3 at and privacy. While you may be interested in one or two particular issues that his home in Concord, Mass. at age 84. we cover, it is important to note that other parts of your company can take advantage of your membership as well. A native of Boise, Idaho, Mr. Eberle served as an officer in the U.S. Navy during World War II. He Because we work with so many different parts of an organization – and each served two terms in the Idaho state legislature, department’s needs are different – we want to do a better job of communicat- then went on to co-found the pulp and paper ing what we do in a tailored way to different departments, and continue to William D. Eberle company Boise Cascade, and later served as develop services that are of interest to a particular functional area of a corpo- CEO of American Standard. President Nixon appointed him as special trade ration. One initiative we are working on is reaching out to corporate counsel representative for the United States in 1971. within member and prospective member companies, in order to underscore the wide array of legal issues that we address, ranging from competition He was very active in the work of the International Chamber of Commerce, policy and intellectual property protection to commercial arbitration and the chairing its commission, and serving on its executive board Alien Tort Statute. and finance committee. For many years, Mr. Eberle chaired USCIB’s Policy Co- ordinating Committee. At his death he was a USCIB Vice Chair and Trustee. Late last year, we created a Corporate Counsel Subcommittee as part of USCIB’s Committee on Arbitration. The subcommittee, chaired by Roland “Bill Eberle was an outstanding statesman in every sense of the word,” said USCIB Schroeder of General Electric, provides a forum at which corporate coun- President Peter M. Robinson. “He was steadfast in his commitment to open mar- sel can exchange ideas and gain a better understanding of arbitration and kets and , and his personal dedication to organizations like ours that he ADR, with a view to making it more cost- and time- efficient and responsive to chose to work with was nothing short of remarkable. He will be sorely missed.” business needs. The subcommittee provides a forum for members to provide We also regret to announce the passing of another distinguished former presi- direct feedback on the workings of the ICC International Court of Arbitration dent of USCIB, Christopher Phillips, who died on January 10 in Gloucester, and highlights the particular advantages of arbitration under the ICC’s rules. Mass., age 87. Mr. Phillips was a career U.S. diplomat who served as execu- Besides developing targeted services and communication to corporate coun- tive head of the organization from 1965 to 1969. He returned to government sels, we also want to raise our profile within this community. As such, we service following his years with USCIB, and he was named U.S. ambassador to are co-sponsoring an intellectual property conference this April in New York, Brunei under President Reagan. organized by Argyle Executive Forum, at which senior corporate counsel will discuss how their companies are wrestling with global IP issues. Member News and Notes – At a March 13 dinner in Paris, Richard Please don’t hesitate to contact us to learn how you can get involved. A. Johnson, senior partner with Arnold & Porter, LLP and chair of USCIB’s Bio- technology Committee, was presented with the BIAC Leadership Award by the William Martin is USCIB’s Senior Vice President for Development. He can be Business and Industry Advisory Committee to the OECD. “Rick’s award is very reached at (212) 703-5064 or [email protected]. much deserved,” commented BIAC Chairman Charles Heeter. Mr. Johnson also chair’s BIAC’s Biotechnology Committee. … USCIB’s board of directors, the Executive Committee, is pleased to announce the following elected ap- pointments: Inge Thulin, 3M (Vice Chair); Ron Baukol (Senior Trustee); Jim new members Quigley, Deloitte (Trustee); Stephen Tritch, Westinghouse Electric Company (Trustee); Dick Crawford, McDonald’s (Executive Committee); Bill Sterrett, Roanoke Trade Services (Executive Committtee); Barclay Resler, Coca-Cola Afilias USA, Inc. Stanford Financial Group (Executive Committee). American Honda Motor Co., Inc. King & Spalding USCIB staff news – Welcome to Bridgett Edwards, who joined USCIB Avalon Capital Group, Inc. American BioIndustry Alliance as an Administrative Assistant for the Issuing and Marketing section of USCIB’s Kreab Group Carnet Department. Most recently Bridgett worked in the entertainment prac- tice at the law firm Greenberg Traurig.

8 USCIB International Business Spring 2008 www.uscib.org trade services

The court plans a new Asia secretariat in .

ICC Court of Arbitration to 2007: A Record Year Open Offices in Asia for the ICC Court The number of new cases filed with the ICC International Court of Arbitration in 2007 to- taled nearly 600, a figure unprecedented in the court’s 85-year history. Some of the key figures he ICC International Court of Arbitration has “We are very excited by these two steps, which T released by the court in February, pending pub- decided to set up new offices in Hong Kong reflect our conviction that the Asia-Pacific region lication of its annual statistical report this June: and Singapore, in recognition of the growing is of significant importance to the future of ICC importance of the Asia Pacific region to ICC’s mul- Dispute Resolution Services,” commented Jason • 599 requests for arbitration were filed with tifaceted dispute resolution services. Fry, secretary general of the ICC court. “Our the ICC Court. desire was to respond to an increasing demand The ICC court, the world’s widely respected • The requests concerned 1,611 parties from for the provision of high-quality services locally. international arbitral body, will open a branch 126 countries and independent territories. ICC is a truly international organization and as of the court’s secretariat in Hong Kong, with a • In 11.4 percent of cases at least one of the such wishes to ensure its global reach to the inter- case management team to administer cases in parties was a state or para-statal entity. national business community.” the region under the ICC Rules of Arbitration. It • The place of arbitration was located in 42 will further locate a staff director in Singapore, Mr. Fry expressed gratitude for the encourage- countries throughout the world. where it will open a liaison office dedicated to ment received from the governments of Singapore • Arbitrators of 66 nationalities were appointed ICC Dispute Resolution Services. Both initiatives and Hong Kong to bring the ICC court’s services or confirmed under the ICC Rules. will be implemented in the last quarter of 2008 directly to the region. “Both Singapore and Hong and should be fully operational by the end of Kong are recognized hubs for international dispute • The amount in dispute exceeded one million the year. resolution,” he said. “That fact is reflected in this dollars (U.S.) in 57.4 percent of new cases. two pronged approach to the region.” • 349 awards were rendered.

USCIB International Business Spring 2008 www.uscib.org 9 ATA Carnets speed nearly $12 billion in temporary exports worldwide each year

New Look for “Merchandise Passport” Service

USCIB has unveiled a new logo for its highly successful ATA Carnet export service. Carnets (pronounced Accepts -Free “kar-nays”) are often called “merchandise passports,” since they enable users to get product samples, Imports professional equipment and other temporary exports through customs duty- and tax-free. The new logo, part of an organization-wide re-branding campaign, is designed to clearly reflect the Carnet’s essential On March 1, Ukraine became the latest country role as a passport for trade. to join the ATA Carnet system, which permits the temporary importation of various types of “ATA Carnets are, first and foremost, a practical business tool,” said Cynthia Duncan, USCIB’s senior goods without duties or taxes. Coupled with the vice president for Carnet operations. “They save users time, money and the hassle of getting held up country’s recent agreement to accede to the at customs. We believe our ‘new look’ conveys the practical, no-nonsense approach our users take to World Trade Organization, the move is a strong global trade.” signal that the country is committed to promot- ing economic growth and openness, and to Carnets are internationally recognized customs documents for temporary duty-free, tax-free import of becoming a major European hub for trade. commercial samples, professional equipment and goods displayed at trade shows. Companies around the world use them to reduce costs and speed global operations. (The acronym “ATA” is a combination of “Extension of the Carnet network into the the French and English abbreviations for “temporary admission.”) former Soviet bloc nations is a major priority for the worldwide system and particularly for our ATA Carnets are accepted in over 75 customs territories and can be used for multiple trips during a European counterparts,” said USCIB’s Cynthia one-year period. The global Carnet system, which is overseen by the Paris-based International Chamber Duncan. “This will increase access to the Ukrai- of Commerce (ICC), is administered in the United States by USCIB, which issues Carnets out of its New nian market and further meet the demands of York headquarters and through its two service providers, Roanoke Trade Services and the Corporation U.S. exporters with an interest in the region.” for International Business. Ukraine will waive import duties on profession- Over 155,000 Carnets were issued worldwide in 2007, covering goods valued at almost $12 billion. The al equipment, goods for exhibitions and fairs, worldwide Carnet network is growing, with Pakistan, and Ukraine among the most recent additions and commercial samples. ATA Carnets will be to the system (see sidebar). A country joins the Carnet system by ratifying either the Conven- accepted for transit operations and postal tion or the ATA Convention on temporary imports, and by designating a private-sector body to issue and traffic, but not unaccompanied goods. ATA guarantee Carnets within its territory. Carnets will be guaranteed by the Ukranian To learn more about the ATA Carnet export service, visit www.merchandisepassport.org. National Chamber of Commerce and Industry.

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Two bills currently before the U.S. Senate would taxing products from countries that do not re- “This issue could cause an absolute train wreck combine a national cap-and-trade system for spect the Kyoto Protocol.” to the multilateral trading system,” said Mr. Deal. reducing carbon emissions with fees or taxes on “Clarification of the relationship between multilat- The USCIB study looks at pre-existing GATT/WTO imports from countries that do not adequately eral environment agreements and international jurisprudence on trade and environment, as well limit such emissions. Meanwhile, the European trade rules, as called for in the WTO’s Doha as key WTO rulings such as the 1998 Shrimp-Tur- Commission has floated the same idea in pro- Development Agenda, may be necessary to avert tle decision. According to Mr. Deal, that landmark posing a new European emissions regime. Last such a clash.” ruling may have opened the door for the use of October, French President Nicolas Sarkozy trade measures to promote environmental objec- publicly urged the EU to “examine the option of The USCIB study is available at www.uscib.org/ tives based on the way a product is made. docs/wto_and_kyoto_2008.pdf.

10 USCIB International Business Spring 2008 www.uscib.org upcoming events

USCIB Spring 2008 Seminar Series Letters of Credit: Are the New Rules Working? Nearly one year after UCP 600 went Whether you have already attended ing benchmark Seminar Locations: into effect on July 1, 2007, problems a seminar on the topic or this is rules that May 5 - New York, NY and challenges have emerged in the your first in-depth look at the new resulted in the Hosted by: practical application of these rules rules, this seminar brings fresh and revised UCP Bank of New York Mellon that impact current trade practice important perspectives to your un- 600. He is May 15 – Chicago, IL and can increase your payment risk. derstanding of the impact and risks uniquely qualified to address the rules Holiday Inn Chicago Mart Plaza to your business. and its impact on trade practice. It’s time to ask – how are the new (Riverview) rules really working in practice? Our instructor, Don Smith, is a Registration fee is $395 and includes May 19 – Burlington, MA well-known speaker and writer on all materials, continental breakfast Hosted by: TD Banknorth Join USCIB for a full day seminar in and brings a wealth of and buffet lunch. USCIB members are any one of five locations, where you May 20 - Lyndhurst, NJ real world experience to the topic. entitled to a 10-percent discount. will have the opportunity to examine Hosted by: TD Banknorth and In his role as an expert member of the issues, clarify the major changes Commerce Bank the International Chamber of Com- For a copy of the seminar brochure, in the rules and assess your risks – merce’s Banking Commission, Mr. including registration form, please May 21 - Mount Laurel, NJ from the standpoint of new insights Smith represented the United States visit www.uscib.org/docs/ucp_semi- Hosted by: TD Banknorth and gained from current trade practice. in the ICC’s updating of its longstand- nars_2008_brochure.pdf Commerce Bank

Other Upcoming Events to Note

ICC Arbitration Work- 22nd Conference on Inter- World Trade Week NYC ICC Conference: shop, Montreal national Audiovisual Law: May 19 – 22, 2008 A Global Perspective April 30 – May 2, 2008 Rights Clearance Various venues on Data Protection Under the auspices of the Interna- in 2008: Towards New York City and Processing” tional Court of Arbitration® Clearer Rights? Wednesday, May 28, 2008 McGill University, Montreal Held under the auspices of the ICC World trade drives the New York ICC Headquarters Institute of World Business Law economy. Every year, the New York Paris The ICC International Court of Arbitra- Friday, May 16, 2008 trade community comes together in tion, with support from USCIB and the Cannes, France May to celebrate World Trade Week This unique ICC data protection Canadian Chamber of Commerce, is with a full agenda of educational conference will emphasize the global pleased to announce that, for the first The rise of the Internet and video on seminars, global business network- nature of data processing and data time in Canada, it will host a two-day demand has made rights clearance ing events and an awards breakfast transfers. It will include an update arbitration workshop. The workshop an expensive and complex process that recognizes exemplary contribu- on recent developments around the seeks to provide the participants for the film industry. When the price tions in the field. Today’s global world, as well as two panels that will with strategies and tactics in drafting of non-compliance may prove to be economy provides unprecedented examine case studies in the areas arbitration documents under the ICC non-distribution, all stakeholders, opportunities for business growth of international data transfers and Rules. The workshop will include insurers, programmers, distribu- through international expansion. global sourcing, and current EU drafting sessions and interactive tors, film-makers and co-producers issues. The conference will focus on discussions with renowned arbitrators agree that rights clearance must be Learn more about these opportuni- real-world data processing situations, and practitioners of ICC arbitration a priority. Held in concert with the ties, and how to take advantage of with interaction from the audience. aimed at providing a greater under- Cannes film festival, this conference them, by visiting the World Trade Speakers will include leading data standing of ICC arbitration practice. is a must for anyone involved in the Week 2008 calendar of events at protection experts from companies film industry who wishes to keep up www.wtwnyc.org. and supervisory authorities around For program details and registration to date with the latest business, legal the world. information, please visit www.uscib. and technical knowledge regarding org/docs/ICC_Arbitration_Montreal_ right clearances. For more information or to register, Program.pdf, or contact Lea Fellus please visit www.iccwbo.org/events. (+1 212 703-5044, lea.felluss@ Details and registration information iccwbo.org). available at www.iccwbo.org/events.

USCIB International Business Spring 2008 www.uscib.org 11 calendar may 5 New York UCP 600 Letters of Credit Seminar International Business is pub- lished quarterly by the United 7 New York BIAC Nanotechnology Expert Group States Council for International 8 New York USCIB Briefing with Deputy Treasury Secretary Robert Kimmitt: “Sov- Business. It is intended for infor- mational use only and should not ereign Investment: An Update on Global Best Practices” be construed as an authoritative 14 Paris BIAC Health Care Policy Task Force statement of USCIB views or policy. 15 Paris ICC Commission on Intellectual Property We welcome your com- 15 Chicago ICC’s 22nd Annual Conference on International Audiovisual Law ments and submissions 19-22 New York World Trade Week E-mail them to news@uscib. org or submit by mail to: Editor, 19 Burlington, MA UCP 600 Letters of Credit Seminar International Business, United 20 Lyndhurst, NJ UCP 600 Letters of Credit Seminar States Council for International Business, 1212 Avenue of the 20 Washington, DC USCIB Labor & Employment Policy Committee Americas, New York, NY 10036. 28 Paris ICC Data Protection and Privacy Conference Visit www.uscib.org or see our june monthly e-newsletter, “What’s New at USCIB,” for the latest 2-3 Paris ICC Commission on Marketing and Advertising news and information from USCIB 3 Paris BIAC General Assembly and our global business network. USCIB members may also visit 4 New York USCIB Executive Committee our password-protected Members 5-6 Paris ICC Financial Services Commission Only section to review materials from USCIB committees and other 11 Paris BIAC Chemicals Committee exclusive information. 12-13 Stockholm ICC Executive Board How to subscribe: 16-18 Seoul OECD Ministerial on the Future of the Internet Economy USCIB members may request this publication free of charge by con- 19 New York USCIB Competition Committee tacting USCIB Member Services 25 ICC Commission on Competition (212-703-5049, membership@ uscib.org). Non-members may july subscribe to this and other USCIB print publications for a nominal 7-9 Toyako, Japan G8 Summit fee by contacting USCIB Commu- 16 Washington, DC USCIB ICT Committee nications (212-703-5063, news@ uscib.org). september Editor: 24 New York ICC Commission on Competition Jonathan Huneke, vice presi- dent for communications, USCIB october United States Council for 6 Paris ICC Commission on E-Business, IT and Telecoms International Business 1212 Avenue of the Americas 7 Paris ICC’s Business Action to Support the Information Society (BASIS) New York, NY 10036 Tel: 212-354-4480 november Fax: 212-575-0327 12 New York USCIB Executive Committee Web: www.uscib.org 12 New York USCIB Annual Award Dinner Copyright © 2008 United States Council for International Business. 20-21 Paris ICC Executive Board All rights reserved.

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