USCIB has joined with the National Foreign Trade Council in support of the United Nations Convention Against Corruption, which the Bush administration recently submitted to the Senate for ratification.
In a January letter to Secretary of State Condoleezza Rice, USCIB President Peter M. Robinson and NFTC President William Reinsch pledged support for the treaty, which they said would “strengthen the rule of law worldwide and further level the playing field for U.S. business.”
For years, American businesses were handicapped by the lack of any overseas legislation equivalent to the U.S. Foreign Corrupt Practice Act, which bans bribery of foreign officials.
This was partially rectified by a 1997 convention among OECD countries requiring legislation similar to that in the U.S. The UN convention, negotiated at a 2003 conference in Merida, Mexico, is more comprehensive, committing signatory government to take steps to prevent corruption as well as to promote international cooperation in efforts to recover assets derived from corruption. It entered into force in December, having been ratified by some 38 nations to date.
“Effectively administered, the UN convention can help to strengthen the rule of law and combat bribery,” according to Stephen J. Canner (202-371-1316, scanner@uscib-dc.org), USCIB’s vice president for investment and financial services. “U.S. business strongly supports these goals.”
Earlier, industry representatives had expressed some misgivings about a specific provision in the UN convention, Article 35, requiring states to establish a private right of action – raising the possibility that the treaty could serve as a launch-pad for costly litigation against companies in U.S. courts over possibly spurious claims.
“After extensive discussion with the State and Justice Departments, we are pleased that agreement was reached on language in the transmittal package that significantly reduces this possibility,” said Mr. Canner.
In its message to the Senate submitting the convention for ratification, the administration stated that "the current laws and practices of the United States are in compliance with Article 35 and that the United States does not construe Article 35 to require any broadening or enhancing of current U.S. law and practice in any way."
The USCIB-NFTC letter emphasized the importance of standing by these commitments and resisting any attempts to weaken them. The two groups will work together on a joint strategy to ensure ratification when the Senate takes up debate on the UN convention.
The letter is available at www.uscib.org/docs/un_corruption_convention_rice_letter.pdf.
OECD Policy Framework for Investment – Following up on the UN’s 2003 Monterrey Consensus, which recommended that poorer countries maintain a healthy investment climate to spur economic development, the OECD is developing a Policy Framework for Investment for non-member countries. Aimed at helping governments create an environment that encourages both domestic and foreign investment, the exercise is financed by the government of Japan, with BIAC facilitating business input. The final result is slated for approval at this year’s OECD ministerial. Rather than recommending specific policy measures, the end result will be a series of background papers, annotations and questions covering ten non-macroeconomic areas affecting a country’s climate for investment. But business experts have identified a number of omissions in the framework text to date, including recognition of broader types of investment beyond simple bricks and mortar, the need for transparency in rule-making, and the importance of trade liberalization and regulatory reform in attracting investment. Learn more at: http://www.uscib.org/index.asp?documentID=3407.
