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Brexit: Parliamentary Perspectives
Friday, December 15, 2017

On June 23, 2016, a majority of British citizens voted to leave the European Union (EU), in the so-called BREXIT referendum.

Beyond its direct impact on both the United Kingdom (UK) and the European Union (EU), BREXIT has numerous implications for the entire OSCE region. Recent events in the U.S. Congress and European Parliament suggest that parliamentarians believe the impact could range from a weakened EU stance on human rights, to a stronger transatlantic alliance on economic matters, to little or no change in current U.S., EU, and OSCE security relationships. 

Over the past few weeks, British Members of Parliament (MPs) have begun to engage in the arduous task of considering legislation to disentangle the UK from the EU. 

What the Legislation Does

The legislation, called the European Union (Withdrawal) Bill, would repeal the 1972 European Communities Act, which brought the UK into the EU.  Adoption of the withdrawal bill would allow EU law to be transposed into UK law to ensure continued consistency with EU rules and regulations on matters ranging from trade to workers’ rights following BREXIT.

In addition, the bill would also empower Ministers and other government officials to make changes to UK law without the approval of Parliament in special cases, with the goal of streamlining bureaucratic processes. 

Ideally, the bill would be adopted before March 2019 when the UK is scheduled to leave the EU.

Challenges

However, numerous complications surround passage of the bill.  First, parliamentarians are considering the bill even though a deal has yet to be finalized for the UK to leave the EU.  Talks between the UK and the EU set for December continue to focus on how much the UK is obligated to pay the EU upon departure; the new legal status  of EU citizens currently living and working in the UK, and vice versa; and trade and regulatory borders, in particular with Northern Ireland. 

Currently, it appears that  border concerns with Ireland may have been resolved, costs may amount to close to 40 billion pounds, rights for EU and UK citizens will be preserved, and that the UK will also continue to be under the jurisdiction of the European Court of Justice… all of which should be officially determined during talks next week.

Other issues also impact passage of the bill.  Parliamentarians are currently legislating without “BREXIT impact assessments” – information they say they need to forecast how BREXIT may impact a variety of sectors from industrial to finance. 

Some MPs object to the legislation because empowering Ministers to make changes without the approval of Parliament could circumvent the standard checks-and-balances process, leading to weak legislation.  Other MPs want to ensure European Court of Justice and some other rules will still apply to the UK during the years it is expected it may take to transpose and/or write new laws to take the place of +20,000 EU laws, regulations, and other legal instruments that would otherwise cease to exist following BREXIT. 

While many of these issues remain in question until a final agreement can be reached, ultimately UK MPs have the final vote on the UK’s withdrawal from EU.  As such, parliamentary perspectives on BREXIT continue to be front and center. 

Recent BREXIT-Related Events in the U.S. Congress and European Parliament

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  • Europe's Refugee Crisis: How Should the US, EU and OSCE Respond?

    This hearing, held on October 20, 2015, discussed possible responses to the Syrian refugee crisis.  Witnesses, including representatives from the American and Serbian governments, the UNHCR, the European Union, and non-profit groups working with refugees, highlighted the scale and intensity of the crisis.  Many of the witnesses also emphasized the need for cooperation among governments and between governments and non-profit organizations in addressing this crisis.

  • Smith Calls for Action on Worst Refugee Crisis in Europe since WWII

    WASHINGTON—At a hearing convened today by the Commission on Security and Cooperation in Europe, also known as the Helsinki Commission, Chairman Chris Smith (NJ-04) and other lawmakers scrutinized actions being taken to deal with Europe’s largest refugee crisis since World War II by the United States, European governments, regional bodies like the OSCE and the EU, and civil society. The Commission also reviewed recommendations on developing a long-term solution to the crisis. “The European crisis requires a response that is European, national, and international. There must be effective coordination and communication directly between countries as well as through and with entities like the OSCE and European Union,” said Rep. Smith, who called today’s hearing. “There is real human need and desperation. Refugees are entrusting themselves to smugglers and where there is human smuggling there is a higher risk of human trafficking,” he continued. “There is also the real threat that terrorist groups like ISIS will infiltrate these massive movements of people to kill civilians in Europe and beyond. I am deeply concerned that the screening at many European borders is inadequate and putting lives at risk. All of us must be responsive to the humanitarian needs without compromising one iota on security.” Smith said that “given the disproportionate number of men fleeing to Europe and potentially soon to the United States – currently only 14 percent of the refugees and migrants arriving via the Mediterranean Sea are women, 20 percent are children, and the remaining 65 percent are men – robust vetting is essential. We must ensure that lone wolf terrorists don’t turn into wolf packs.” Smith noted that during the conflict in Kosovo, he travelled to Stenkovec refugee camp in Macedonia and was at the McGuire Air Force Base in New Jersey to welcome some of the 4,400 people brought from there to the United States. A refugee – Agron Abdullahu – was apprehended and sent to jail in 2008 for supplying guns and ammunition to the “Fort Dix 5,” a group of terrorists who were also sent to prison for plotting to kill American soldiers at the Fort Dix military installation. Given Secretary Kerry’s announcement in September that the United States intended to resettle at least 85,000 refugees in fiscal year 2016, including at least 10,000 Syrians, and at least 100,000 refugees in fiscal year 2017, “The United State and Europe must be on high alert to weed out terrorists from real refugees,” Smith said. He added, “ISIS has committed genocide, mass atrocities, and war crimes, against Christians and other minorities. Religious and ethnic minorities often have additional risks and vulnerabilities even as refugees and should be prioritized for resettlement.”   Witnesses testifying at the hearing focused on the root causes of the refugee crisis as well as the current measures being put into place to help mitigate the humanitarian impact and ensure that security and economic challenges are addressed. In addition, witnesses emphasized the importance of a shared and coordinated response by all actors involved to ensure a long-term solution to the crisis. “It’s a very challenging situation,” said Anne Richard, Assistant Secretary of State for Population, Refugees, and Migration. “The scale of this migration is much bigger than before.” “The US government has a three-pronged approach: strong levels of humanitarian assistance; active diplomacy; and expanded refugee resettlement,” she continued. “Without our support, more people would be making the dangerous journey to the north.” “Europe is facing its biggest refugee influx in decades. UNHCR is calling upon the European Union to provide an immediate and life-saving response to the thousands of refugees as they are crossing the Mediterranean and making their way through Europe,” said Shelly Pitterman, Regional Representative to the United States and Caribbean, Office of the United Nations High Commissioner for Refugees. “Europe can no longer afford to continue with this fragmented approach that undermines efforts to rebuild responsibility, solidarity and trust among states, and is creating chaos and desperation among thousands of refugee women, men and children. After the many gestures by governments and citizens across Europe to welcome refugees, the focus now needs to be on a robust, joint European response.” “The ongoing refugee crisis is not a European crisis. It is a global crisis, fueled by conflicts, inequality and poverty, the consequences of which unfolded in Europe but the roots of which are far away from our continent,” noted EU Ambassador to the United States David O’Sullivan. “The EU and its Member States are firmly committed to the promotion and protection of the human rights of migrants. Despite the influx, we do not remove or return genuine refugees, we respect the fundamental rights of all persons arriving in the EU, and we invest major resources in saving lives at sea.” Djerdj Matkovic, Ambassador of the Republic of Serbia to the United States, said, “The OSCE region is witnessing the largest refugee influx in decades. Apart from being a significant economic challenge, this is a process with potentially very serious security implications and the cause of concern in regards to the respect for human rights… As the presiding country [of the OSCE] Serbia recognizes the importance of this issue and is trying to provide more active and concrete approach of the OSCE in addressing it. In light of this bleak security situation and looming instability, it is paramount that all the mechanisms that were designed and adopted by the participating States to oversee the implementation of commitments are strong and functioning.” Sean Callahan, chief operating officer of Catholic Relief Services, observed, “As global leaders in international humanitarian and refugee response, the US and Europe must find new and creative ways to help to alleviate this suffering and protect the vulnerable.  Pope Francis has led in this effort to do more by asking every Catholic parish in Europe to reach out and assist the refugees; he reminds us of our moral obligation to help the stranger... Despite efforts by [international NGOs] like CRS, local civil societies, governments, and non-traditional donors, the despair of so many refugees indicates that assistance must move beyond short-term band-aids to longer-term solutions.” Chairman Smith was joined at the hearing by a bipartisan group of lawmakers, including Senator John Boozman (AR), Senator Jeanne Shaheen (NH), Representative Michael Burgess (TX-26), Representative Randy Hultgren (IL-14), and Representative Joe Pitts (PA-16).

  • Helsinki Commission Announces Hearing to Examine Europe's Refugee Crisis

    Europe is experiencing an enormous refugee crisis. An estimated half a million migrants and refugees have crossed the Mediterranean to Europe so far in 2015; as many as 50 percent are Syrian refugees.  Thousands more join them each day, and many of the European nations of the Organization for Security and Cooperation in Europe (OSCE) are struggling to cope.

    As the regional security organization in Europe, how can the OSCE use its tools, standards, and commitments to help manage the humanitarian crisis and ensure that security and economic challenges are addressed? What has the US government done, and what should it be doing? The hearing will examine the reasons for the current crisis; relevant OSCE and other European agreements, commitments, and structures; the response of the OSCE, the EU, and the US; potential security issues related to the ability of extremists to infiltrate the refugee stream; and the potential for refugees to become victims of human trafficking.

  • Bipartisan Congressional Delegation Represents US at OSCE Parliamentary Assembly; Also Visits Ukraine, Czech Republic

    Forty years after the signing of the Helsinki Final Act established the precursor to today’s Organization for Security and Cooperation in Europe (OSCE), five members of the Helsinki Commission and four other members of Congress traveled to the OSCE Parliamentary Assembly Annual Session in Helsinki to demonstrate the U.S. commitment to confronting Russian aggression in Ukraine and elsewhere. Led by Commission Co-Chairman Senator Roger F. Wicker (MS), the bicameral, bipartisan delegation organized by the Helsinki Commission included Commission Chairman Representative Chris Smith (NJ- 04); House Commissioners Robert B. Aderholt (AL-04), Steve Cohen (TN-09) and Alan Grayson (FL-09); and Representatives Gwen Moore (WI-04), Michael Fitzpatrick (PA-08), Richard Hudson (NC-08) and Ruben Gallego (AZ-07). Before attending the Annual Session from July 5 to 7, several members of the delegation also visited Ukraine and the Czech Republic. A central concern to the delegation throughout the trip was Russia’s restrictions on democracy at home and aggression in Ukraine, along with Russia’s threat to European security.

  • Helsinki Commission Hearing Reviews Progress toward Accountability, Justice, and Reconciliation in Northern Ireland

    WASHINGTON—At its March 18 hearing on “Northern Ireland: Stormont, Collusion, and the Finucane Inquiry,” the U.S. Commission on Security and Cooperation in Europe, also known as the Helsinki Commission, reviewed ongoing efforts for accountability, justice, and reconciliation in Northern Ireland.   Witness testimony focused on the provisions of the December 2014 Stormont House Agreement, especially those aspects addressing government collusion in paramilitary crimes, and the long-promised inquiry into the 1989 murder of human rights lawyer Patrick Finucane. “For years, British officials denied collusion in crimes committed by paramilitaries,” said Helsinki Commission Chair Rep. Chris Smith (NJ-04). “In recent years, evidence has mounted that its security services enabled or had advance knowledge of a substantial number of paramilitary murders. We hope to find out what the British government has done in response.” “The many previous denials [by the British government] and the time that has passed in the Finucane case have drained public confidence in the peace process and diminished respect for the rule of law in Northern Ireland,” Chairman Smith continued. “There are those who oppose the peace process and their opposition is dangerous. The failure to address the case of Patrick Finucane in the manner promised by the British government provides a readily available propaganda tool for those who would abuse it to further their own ends.” “Many people in Ireland lack confidence in the establishment and are slow to accept that things have really changed,” said Mrs. Geraldine Finucane, widow of Patrick Finucane. “One of the examples that is often pointed to as a reason for this mistrust of the establishment is the lack of an inquiry in Pat’s case, despite the truly shocking revelations of several major investigations … it is clear that the British Government is fighting against the prospect of full and public accountability for its actions.” “It was quite a formidable political achievement to achieve consensus on the…Stormont House Agreement,” said Professor Kieran McEvoy, Queen’s University School of Law, Belfast. “If the political will exists from the different political actors, and that will is translated into robust legislation designed to maximize the effectiveness of the different mechanisms, the Stormont House Agreement does provide a roadmap to make significant progress in dealing with the past in Northern Ireland.” “Most of the families we [at the Pat Finucane Center] represent realize that seeing anyone brought to court for the crimes…is beyond their reach,” said Anne Cadwallader, author of Lethal Allies: British Collusion in Ireland.  “They are, however, full of steely determination that the truth should be told.  They hope that this will ensure that those responsible for taking similar decisions will never again collude in the deaths of the citizens they are meant to protect.” Chairman Smith was joined at the hearing by a bipartisan group of lawmakers, including Rep. Robert Aderholt (AL-04), Rep. Joseph Crowley (NY-14), Rep. Bill Keating (MA-09), and Rep. Brendan Boyle (PA-13).

  • Northern Ireland: Stormont, Collusion, and the Finucane Inquiry

    This hearing, presided over by Christopher H. Smith (NJ-04), focused on the ongoing efforts for accountability, justice and reconciliation in Northern Ireland.  It also focused on recent revelations of British government collusion in crimes committed by paramilitaries during the Troubles and the government’s response to these revelations.  

  • Helsinki Commission to Hold Hearing on Northern Ireland: The Stormont House Agreement, Collusion, and the Finucane Inquiry

    WASHINGTON—The Commission on Security and Cooperation in Europe, also known as the Helsinki Commission, today announced the following hearing: “Northern Ireland: Stormont, Collusion, and the Finucane Inquiry” Wednesday, March 18 2:00PM Rayburn House Office Building Room 2175 The Helsinki Commission hearing will review progress toward holding individuals accountable for past injustices in Northern Ireland. This will include the December 2014 Stormont House Agreement, as well as government collusion in paramilitary crimes, and the long-promised—but not yet delivered—inquiry into the murder of human rights lawyer Patrick Finucane. In the December 2014 Stormont House Agreement, the parties of the Northern Ireland Executive and the British and Irish governments agreed on a process to resolve a number of outstanding issues in Northern Ireland. These include accountability for past injustices, or what has become known as “dealing with the past.” The success of the process is far from assured, and the hearing will investigate its prospects, and help determine how the US government can best support its implementation. The hearing will examine other issues of accountability for past government collusion in paramilitary crimes. This will include the Finucane case: as part of the Good Friday Agreement, the government of the United Kingdom solemnly committed to conducting a public, independent judicial inquiry into its collusion in Mr. Finucane’s murder. Yet 17 years after the accord and 26 years after Mr. Finucane’s death, the British government has not yet conducted the promised inquiry. The following witnesses are scheduled to testify: Anne Cadwallader, author, Lethal Allies: British Collusion in Ireland Mrs. Geraldine Finucane, widow of murdered human rights lawyer Patrick Finucane Professor Kieran McEvoy, Queen’s University School of Law, Belfast, Northern Ireland

  • Chairman Smith and Rep. McGovern Introduce “Global Magnitsky Human Rights Accountability Act”

    WASHINGTON—Rep. Chris Smith (NJ-04), Chairman of the Commission on Security and Cooperation in Europe, also known as the U.S. Helsinki Commission, and Rep. Jim McGovern (MA-02), today introduced the “Global Magnitsky Human Rights Accountability Act” (H.R. 624). The bill prohibits foreign human rights offenders and corrupt officials operating anywhere in the world from entering into the United States and blocks their U.S. assets. It effectively globalizes and strengthens the “Sergei Magnitsky Rule of Law Accountability Act of 2012,” which was directed at individuals and entities from Russia. “The ‘Global Magnitsky Human Rights Accountability Act’ is a game-changer, and demonstrates America’s commitment to protecting human rights worldwide,” said Chairman Smith. “We are sending a message to the world’s worst human rights violators:  we will shine a spotlight on your crimes. We will deny your visas. We will freeze your assets. No matter who you are or how much money you have, you won’t be enjoying the fruits of your misdeeds by visiting the United States or taking advantage of our financial institutions.” “We have made important progress in the last few years,” Rep. McGovern said.  “But since the introduction of the original Magnitsky Act, human rights defenders and anti-corruption activists worldwide have urged us to pass a law that covers similar violations in countries other than Russia.  Through the Global Magnitsky Act, we can better standardize our approach to human rights violators and provide clear guidance to the executive branch on how we expect these perpetrators to be held accountable.” “Conscripting child soldiers, kidnapping political opponents, and brutalizing people based on their religion are horrifying acts for which people must be held accountable – and this bill will do it,” said Chairman Smith. “The earlier Magnitsky Act enjoyed overwhelmingly bipartisan support in both the House and the Senate. I expect the Global Magnitsky Act to move forward with the same level of commitment in both chambers, and on both sides of the aisle.” Earlier this week, Senators Ben Cardin (MD) and John McCain (AZ) introduced similar legislation in the Senate, which also applies worldwide and employs visa bans and property freezes. Unique aspects of the House bill include the requirement that the President impose sanctions if he or she determines that a foreign person has committed gross human rights offenses. The bill also permits the President to sanction perpetrators regardless of whether the victims were exercising or defending basic human rights; requires that the annual Global Magnitsky List be released each year on Human Rights Day; and directs the Comptroller General to assess and report on implementation. Both the “Global Magnitsky Human Rights Accountability Act” and the earlier “Sergei Magnitsky Rule of Law Accountability Act of 2012” were inspired by Russian lawyer Sergei Magnitsky, who was arrested and imprisoned by the Russian government following his investigation into fraud involving Russian officials. He was beaten to death by prison guards in 2009 after being held in torturous conditions for 11 months without trial. Summary: The “Global Magnitsky Human Rights Accountability Act” This act requires the President to publish and update a list of foreign persons or entities that the President determines are responsible, and who the President has sanctioned, for gross violations of internationally recognized human rights – including extrajudicial killings, torture, enforced disappearances, and prolonged, arbitrary detention – or significant corruption. Known as the Global Magnitsky List, the list will be due annually on December 10 (Human Rights Day). Although the bill directs the President to prioritize cases where the victims were seeking to exercise or defend internationally recognized human and rights and freedoms, like freedom of religious, assembly, and expression, or expose illegal government activity, the President can act regardless of the victim. Sanctions on these individuals and entities will include: Prohibiting or revoking U.S. visas or other entry documentation for foreign individuals. Freezing and prohibiting U.S. property transactions of a foreign individual or entity if such property and property interests are in the United States; come within the United States; or are in, or come within, the control of a U.S. person or entity. This act also requires the Comptroller General of the United States to assess the implementation of the law and report to Congress, so that Congress can ensure it is being executed fully.

  • Helsinki Commission on Opening of Europe’s Largest Human Rights Meeting

    WASHINGTON—U.S. Senator Ben Cardin (MD), Chairman of the Commission on Security and Cooperation in Europe (U.S. Helsinki Commission) and Representative Chris Smith (NJ-04), Co-Chairman of the Commission, released the following statement ahead of the Organization for Security and Cooperation in Europe (OSCE) annual high-level meeting on human rights. From September 22-October 3, civil society and government representatives of OSCE participating States will gather in Warsaw, Poland, for the annual Human Dimension Implementation Meeting to discuss compliance with the full range of OSCE human dimension commitments, with special focus on migrant rights, minority issues, and combating violence against women and children. “The Human Dimension Implementation Meeting takes place while Russian aggression in Ukraine continues to threaten basic OSCE principles. I expect this will be a major focus of the meeting, as well as Russian actions at home that are cynically rolling back the ability of civil society to comment on or contribute to how that country functions," said Chairman Cardin. "I am pleased that Professor Brian Atwood will head the U.S. Delegation at this critical time. The promises OSCE states made to one another almost 25 years ago, that respect for human rights within any country is a matter of concern for all states, has guided us and must continue to do so. I also welcome the leadership of the U.S. Ambassador to the OSCE, Daniel Baer, who will be taking a high-level study group to the Auschwitz-Birkenau death camp." Co-Chairman Smith said, “The Russian government’s gross human rights violations in Ukraine must be a central topic of discussion at the Human Dimension meeting. HDIM is an indispensable tool for holding states accountable to OSCE commitments and most effective when both government and civil society representatives have equal opportunity to debate each state’s human rights record.  One issue that states and civil society must discuss this year in Warsaw, and at the OSCE “Berlin Plus 10” anti-Semitism conference in November, is the alarming rise of anti-Semitic incidents in the OSCE region.  The OSCE must also continue to combat trafficking in human beings, including through fulfilling commitments taken last year to train transportation workers to identify possible victims and to improve law enforcement information sharing internationally on potential sex tourists. Commitments are made to be kept.”

  • Commission to Hold Hearing with OSCE Human Rights Appointees

    WASHINGTON—Today the Commission on Security and Cooperation in Europe (U.S. Helsinki Commission) announced the following hearing: Anti-Semitism, Racism and Discrimination in the OSCE Region Tuesday, July 22, 2014 10:00 a.m. Dirksen Senate Office Building Room 562 Following an escalation of anti-Semitic hate crimes a decade ago, the Organization for Security and Cooperation in Europe (OSCE) intensified efforts to combat prejudice and discrimination throughout Eurasia and North America. Since 2004, three Personal Representatives have been appointed annually by the OSCE Chair-in-Office (currently Switzerland) to address anti-Semitism; racism, xenophobia, and discrimination including against Christians and members of other religions; and intolerance and discrimination against Muslims. In an official joint visit to the United States, the Personal Representatives will address progress and ongoing challenges in the OSCE region a decade after the creation of their positions. The following witnesses are scheduled to testify: Rabbi Andrew Baker, Personal Representative on Combating Anti-Semitism Professor Talip Küçukcan, Personal Representative on Combating Intolerance and Discrimination against Muslims Alexey Avtonomov, Personal Representative on Combating Racism, Xenophobia and Discrimination, also focusing on Intolerance and Discrimination against Christians and Members of Other Religions

  • Cardin, Smith Advance Security and Human Rights during Annual Meeting of European Parliamentarians

    WASHINGTON - A bipartisan 8-member Congressional delegation led by Senator Ben Cardin (D-MD), Chairman of the Commission on Security in Europe (U.S. Helsinki Commission), visited Georgia, Azerbaijan and Moldova. In Baku, Azerbaijan, Representative Chris Smith (NJ-04), Co-Chairman of the Commission, headed the U.S. delegation to the Organization for Security and Cooperation in Europe’s Parliamentary Assembly (OSCE PA) from June 28-July 2 that successfully advanced priority security and human rights initiatives. Key among the U.S. initiatives was a resolution introduced by Chairman Ben Cardin condemning Russia’s violation of international commitments by annexing Crimea and directly supporting separatist conflict in Ukraine. Upon passage of the resolution by a 3 to 1 margin, Cardin stated: “Russia is a member of this organization, but is violating its core principles. We must speak up in the strongest possible way and hold Russia accountable for its destabilizing actions and that is what we did here.” Co-Chairman Smith received overwhelming support for his resolution on efforts to combat child sex trafficking. As the Assembly’s Special Representative on Human Trafficking, Smith’s initiative pressed for the formation of a notification system among countries regarding the travel of persons convicted of sex crimes against children, as well as increased cooperation between law enforcement agencies and with the travel industry to prevent child sex tourism. “This resolution provides a tool to mitigate the horrific abuse of children by sexual tourism,” said Smith. “These predators thrive on secrecy, and so the goal is advance notification of sex offender travel so that children can be protected.” In addition to Chairman Cardin and Co-Chairman Smith, the delegation included Commission Ranking Member Senator Roger Wicker (R-MS), Senator Tom Harkin (D-IA), Commissioner Representative Robert Aderholt(R-AL), Commissioner Representative Phil Gingrey (R-GA), Representative David Schweikert (R-AZ) and Representative Adam Schiff (D-CA). The U.S. delegation fielded two of the 18 resolutions considered at the annual session, as well as a total of 19 amendments to several of these resolutions. In an initiative related to Chairman Cardin’s Ukraine resolution, Senator Wicker introduced language adopted by the Assembly recognizing the importance of the OSCE’s military observation missions, including the inspections in Ukraine.  Senator Wicker also participated in a dialogue with fellow parliamentarians on OSCE engagement with partner country Afghanistan. Senator Tom Harkin successfully offered amendments calling for access and equal opportunity for persons with disabilities, including calling for the ratification and implementation of the Convention on the Rights of Persons with Disabilities by all OSCE participating States. Commissioner Representative Robert Aderholt achieved passage of language supporting the integration of Western Balkan countries into the EU and NATO, and, in a separate initiative, highlighted the plight of “disappeared” political prisoners in Turkmenistan and called on that government to finally come clean on the fate of these individuals, one of whom was a former OSCE ambassador. An initiative by Rep. David Schweikert encouraged increased outreach by the OSCE to Mediterranean Partner countries, while Rep. Phil Gingrey brokered an agreement calling for concrete steps to promote clean and affordable energy. Finally, Rep. Smith and Senator Cardin joined an initiative with the Canadian delegation to respond more vigorously to acts of anti-Semitism throughout the participating States. On July 2 the meeting concluded with the adoption of the Baku Declaration, containing broad policy recommendations for the OSCE and its 57 participating States in the fields of political affairs and military security, trade, the environment and human rights. While in Azerbaijan, the delegation also held bilateral meetings with the Government of Azerbaijan, including meeting with President Ilham Aliyev as well as representatives of civil society fighting for media freedom, rule of law and disability rights in Azerbaijan. Bilateral meetings in Georgia and Moldova In addition to attending the OSCE PA’s Annual Session in Azerbaijan, Chairman Cardin led the delegation to stops in Tbilisi, Georgia, and Chisinau, Moldova, for bilateral meetings to discuss expanded ties with the United States as well as regional security in the wake of the crisis in Ukraine. In Georgia the delegation met with the President, Prime Minister, and the leadership of the United National Movement opposition party offering U.S. support and encouraging further democratic reforms, particularly in building a robust and independent judiciary free from corruption and untainted by politically-motivated prosecutions. In Moldova, the delegation met with the Prime Minister and key political leaders across the spectrum on the day the national parliament ratified an historic agreement with the European Union. The delegation also held consultations with the leadership of the OSCE Mission to Moldova, representatives of civil society, and the U.S. Embassy.

  • Cardin, Colleagues Ask Kerry To Urge NATO, OSCE To End All Defense Contracts With Russia

    WASHINGTON– In a letter to Secretary of State John Kerry, U.S. Senator Ben Cardin (D-MD), Chairman of the U.S. Helsinki Commission and, a senior member of the Senate Foreign Relations Committee, – joined by 10 of his colleagues – asked the State Department to urge NATO member countries and participating states of the Organization for Security and Cooperation in Europe (OSCE) to end all defense contracts with Russia in response to the country’s illegal annexation of Crimea and violation of Ukrainian sovereignty. Cardin was joined by U.S. Senators Richard Blumenthal (D-Conn.), John Cornyn (R-Texas), Roger Wicker (R-Miss.), Daniel Coats (R-Ind.), Chris Murphy (D-Conn.), David Vitter (R-La.), and Kelly Ayotte (R-N.H.) and U.S. Representatives Louise Slaughter (D-N.Y.), Joe Pitts (R-Pa.), and Michael Burgess (R-Texas). “We believe the United States must show leadership by terminating all defense contracts with Russia and ask that you strongly encourage our NATO allies and OSCE participating states to take similar actions,” the members of Congress wrote. “We urge you to lead the coordination among NATO and OSCE to halt trade involving military equipment with Russia immediately. We believe this is a crucial step in reestablishing a deterrent against further Russian aggression and strengthening the impact of our targeted economic sanctions against Russia.” Text of the letter is  below.   April 14, 2014 The Honorable John Kerry Secretary of State United States Department of State 2201 C Street Northwest Washington, D.C. 20520 Dear Secretary Kerry: We write to express our support for NATO’s decision to suspend military and civilian cooperation with Russia. We also ask that you further urge both NATO member countries and participating states of the Organization for Security and Cooperation in Europe (OSCE) to work cooperatively to cease all trade involving military equipment with Russia in response to Russia’s illegal annexation of Crimea and violation of Ukrainian sovereignty. This would be a forceful next step by both international organizations (of which the United States is a member) to affirm that there is no more business as usual when it comes to bilateral trade of military equipment given Russia’s hostile actions. As you are aware, two decades ago the Partnership for Peace program was implemented to foster trust between NATO member countries and the member states of the former Soviet Union, and to acknowledge a shared political commitment to creating lasting and inclusive peace in the Euro-Atlantic area. This integration with the member states of the former Soviet Union was predicated on shared values and common obligations to uphold international law. Likewise, the Helsinki Final Act, which has been signed by 57 OSCE nations, including the United States, affirmed our collective commitment to sovereign equality, respect for human rights, and fundamental freedoms. Russia violated these shared principles by disregarding its treaty obligations under the bilateral Treaty of Friendship, Cooperation, and Partnership between Ukraine and the Russian Federation.  We should immediately halt the trade in military equipment now that Russia has reneged on its commitment to abide by international law. Russia has clearly violated the principles of the Helsinki Final Act, and its actions are antithetical to the principles that NATO member countries like the United States seek to uphold. Nonetheless, significant bilateral trade in military equipment continues. The United Kingdom announced the Military Technical Cooperation Agreement with Russia in January 2014, which would provide a framework for Russian and UK defense companies to cooperate at an unclassified level and enable British and Russian arms producers to exchange defense components and technical data. France has continued an existing contract to sell two high-tech Mistral warships to Russia, and the Hungarian Ministry of Defense recently acquired three Mil Mi-8 transport helicopters produced by Rosoboronexport. Unfortunately and inexplicably, the United States is, at the time of writing, continuing with plans to receive 22 more Mi-17 helicopters from Russia as part of our ongoing assistance to Afghanistan. We believe the United States must show leadership by terminating all defense contracts with Russia and ask that you strongly encourage our NATO allies and OSCE participating states to take similar actions. We urge you to lead the coordination among NATO and OSCE to halt trade involving military equipment with Russia immediately. We believe this is a crucial step in reestablishing a deterrent against further Russian aggression and strengthening the impact of our targeted economic sanctions against Russia. We thank you for your attention to this matter. Sincerely, BENJAMIN L. CARDIN United States Senate   RICHARD BLUMENTHAL                                                   United States Senate   JOHN CORNYN                             United States Senate   ROGER F. WICKER                                 United States Senate                              DANIEL COATS                             United States Senate   CHRISTOPHER S. MURPHY                             United States Senate   DAVID VITTER United States Senate   KELLY AYOTTE United States Senate   LOUISE M. SLAUGHTER Member of Congress   JOE PITTS Member of Congress   MICHAEL C. BURGESS Member of Congress

  • U.S. Helsinki Commission to Hold Hearing on Ukraine

    WASHINGTON - The Commission on Security and Cooperation in Europe (U.S. Helsinki Commission) today announced the following hearing: Ukraine: Confronting Internal Challenges and External Threats Wednesday, April 9, 2014 10:00 am Room 215 Dirksen Senate Office Building Following the February 22 removal of the corrupt Yanukovych regime, the new interim government has been working to address numerous internal challenges, including badly needed economic and political reforms. This includes preparations for the May 25th presidential elections. At the same time, Russia continues to threaten Ukraine’s sovereignty and territorial integrity with further military intervention and attempts to undermine the legitimacy of the new government. The hearing will offer an assessment of the current situation in Ukraine as it addresses difficult internal challenges exacerbated by Russia’s seizure of Crimea as well as an assessment of ongoing threats and challenges to other countries in the region. The hearing will address current U.S. policy, and how the United States, together with the international community, including the EU and the OSCE, can best continue to assist Ukraine and deter further Russian aggression.  Scheduled to testify:  The Honorable Victoria Nuland, Assistant Secretary for European and Eurasian Affairs, U.S. Department of State

  • Prerequisites for Progress in Northern Ireland

    This hearing assessed the progress towards peace made in Northern Ireland and discussed ways to ensure the sustainability of the peace.  Witnesses condemned the British government for backtracking on the Good Friday Agreement, as well as the United States for not putting enough pressure on Great Britain. Witnesses identified the murder of human rights lawyer Patrick Finucane, whose widow Geraldine was in attendance, as an obstacle to peace.

  • Healing the Wounds of Conflict and Disaster: Clarifying the Fate of Missing Persons in the OSCE Area

    The hearing examined efforts by governments and their partners in clarifying the fate of persons missing within a number of OSCE participating States and partner countries, especially in the western Balkans and northern Caucasus. The hearing also appraised the adequacy of assistance to governments and other entities engaged in locating missing persons, the obstacles that impede progress in some areas, as well as how rule of law mechanisms help governments fulfill their obligations to the affected families and society in clarifying the fate of missing persons. Currently, over a million persons are reported missing from wars and violations of human rights. In addition, there are thousands of reported cases a year of persons missing from trafficking, drug-related violence, and other causes. Locating and identifying persons missing as a result of conflicts, trafficking in humans and human rights violations and other causes remains a global challenge, with significant impact within the OSCE area.

  • Combating Anti-Semitism in the OSCE Region: Taking Stock of the Situation Today

    By most accounts, and thanks to the work of many courageous nongovernmental organizations (NGOs) the despicable evil of anti-Semitism has decreased in most parts of the OSCE region in recent years – but it still remains at higher levels than in 2000. This is simply unacceptable, and it was the topic discussed in this hearing. Concerns raised included political transitions in the Arab world and how they might affect Muslim-Jewish relations, including in Europe; the importance of engagement with Muslim communities in Europe; and growing nationalist and extremist movements that target religious and ethnic minorities.  Additionally the roles of the OSCE, U.S. government, and Congress in addressing continuing issues of anti-Semitism at home and abroad were discussed.

  • U.S. Congressman Pledges to Push for ICC Indictment of Belarusian President Lukashenka

    The chairman of the U.S. Helsinki Commission has pledged to call on the Obama administration to push for the indictment of hard-line Belarusian President Alyaksandr Lukashenka by the International Criminal Court (ICC). While the chances of an indictment are unlikely, the pledge by Representative Chris Smith (Republican, New Jersey) was a clear sign that U.S. lawmakers have not forgotten the egregious human rights situation in the country ruled by the man some dub "Europe's last dictator." At a Helsinki Commission hearing that focused on Minsk's continuing crackdown on political opposition and civil society, Smith said he would send a letter to members of the Obama administration and the UN Security Council asking them to push for the indictment. In an interview with RFE/RL, he later said, "When you commit atrocities for 17 years, as [Lukashenka] has done, the time has come." "[Although] Belarus is not a signatory to the ICC, to the Rome Statute -- and nor are we, frankly -- we've done this before, and we did it with [President Omar al-] Bashir in Sudan. It will take a lot of work, but we need to begin that effort now to get the [UN] Security Council to make a special referral to begin that process," he said. "I'm sure China and Russia will object, but that's worth the fight, because this man commits atrocities on a daily basis against his own people," Smith added. The congressman made his pledge following the testimony of former Belarusian presidential candidate Ales Mikhalevich, who is in Washington for the first time since his release from a detention center in Minsk on February 19. Mikhalevich was one of seven opposition candidates and more than 600 people arrested during the regime's violent crackdown on protesters following Lukashenka's disputed reelection in December 2010. The official reaction to demonstrations drew widespread international condemnation and a coordinated sanctions program by Brussels and Washington. The financial and travel restrictions were accompanied by a boost in funding for the country's beleaguered civil society, journalists, and activists. As the one-year anniversary of the election approaches, watchdogs say the jailing and harassment of human rights defenders and protesters continues, while the independent media and judiciary face intense, often institutionalized, pressure. Mikhalevich says he had to sign agreement on collaborating with the Belarusian state security forces, which are still called the KGB, in order to secure his release. He has since been granted political asylum in the Czech Republic. Ahead of meetings with State Department officials and Washington-based NGOs, he told U.S. lawmakers that supporting Belarusian civil society -- and not holding out hope that Lukashenka will reform -- is the only way to effect change. "I'm absolutely sure that Lukashenka is ready to defend his power by all possible means. Unfortunately, we can compare Lukashenka with [former Libyan leader Muammar] Qaddafi. So I urge the United States, the European Union, and the international community not to trust another game of liberalization badly played by the regime," he said. "Cooperate only with independent civil society in Belarus: nongovernmental organizations, both unregistered and registered, independent newspapers and media, and democratic activists." Analysts say Lukashenka has long employed the tactic of pledging to loosen to grip on the country in exchange for a reprieve from sanctions -- a tactic that has worked in the past. Observers say he has also sought to capitalize on rifts between the United States and the EU, as well as between neighboring Russia and the West, to inhibit united action against his regime. After testifying, Mikhalevich told RFE/RL that he hoped the United States would more fully take on the role of "bad cop" if the EU, which borders Belarus and relies on it as a transit country for gas from Russia, hesitates to do so. "I'm absolutely sure than in order to succeed, the international community should have both the good cop and bad cop. Someone should play the role of the bad cop, and unfortunately, the European Union would not play this role. So I hope that the United States will be ready to do it," Mikhalevich said. Mikhalevich also offered a harrowing account of what he called "constant mental and physical torture" during his two months in custody, including being "stripped naked and forced to assume various positions." "Our legs were pulled apart with ropes and we could feel our ligaments tear," Mikhalevich said in his prepared remarks. Smith appeared visibly moved by account. "Rather than calling them the KGB, it ought to be called the KGB 'P' for 'perverts.' Masked men who strip other men naked, and women, presumably, as well -- those are acts of perversion that should not go unnoticed by the international community," said the Congressman. In July, the U.S. House of Representatives approved a bill sponsored by Smith that would strengthen existing sanctions against Minsk. It is awaiting consideration in the Senate. Smith told RFE/RL that Western attention on the situation in Belarus had been "obscured" to some extent by the events of the Arab Spring, and especially by the global economic downturn. He said that pushing for ICC action would be a sign that human rights are not "taking a back seat." "I've been very much involved for years in the special [UN-backed] court that [U.S. prosecutor] David Crane oversaw for Sierra Leone, and what I learned from that, and from the Rwandan court, and of course from the Yugoslav court, which held [Slobodan] Milosevic and [Ratko] Mladic and [Radovan] Karadzic to account, is that these thugs are frightened by the fact that they may be held to account. And Lukashenka will fear it, I believe, if we make a very serious effort to hold him to account at the International Criminal Court," said Smith. Mikhalevich told RFE/RL that he thinks the chances of ICC action against Lukashenka are slim, but that the prospect of such a move could help pressure the regime to release its political prisoners. "I think that definitely, it's very difficult to organize any [such] political process unless thousands of people are being killed, but still, it's necessary to do all attempts," he said. "And you never know how this regime will develop -- and how many victims we will have next year."

  • Good Governance

    Economic and Environmental Dimension Implementation Meeting Session 3: Good Governance Before I begin, I’d like to thank the panelists today for their excellent and informative presentations. The United States has viewed with keen interest the evolving discussions in recent years on what the OSCE’s priorities should be in the Economic and Environmental Dimension. As our friend and colleague Mr. Svilanovic pointed out during last year’s Vienna Review Conference, we appear to have come to an appreciation that good governance is the key linking theme across the entire second dimension. The Maastricht Strategy is very clear on this point: “Good public and corporate governance and strong institutions are essential foundations for a sound economy, which can attract investments, and thereby enable States to reduce poverty and inequality, to increase social integration and opportunities for all, and to protect the environment. Good governance at all levels contributes to prosperity, stability and security.” As we consider the implementation of our second dimension commitments, however, we should keep in mind why it is important to implement those commitments. The global economic downturn continues to put extreme pressure on people and governments across the OSCE region. To be sure, some countries have weathered the storm better than others. Still, no country can be forever immune to market forces, and even within those that have done well, there are always citizens left behind. This is certainly the case in the United States, and for this reason President Obama is focused intently on how best to put those Americans without a job back to work. We all know that trade and investment are critical drivers of economic growth. Indeed, recognizing this important reality, the Obama Administration has launched the National Export Initiative, which seeks to deepen our strategic trade relationships around the world, recognizing that 85 percent of world GDP growth will occur outside the United States in the coming few years. As we encourage more American businesses – large and small – to embrace international trade, seek opportunities in new markets, and make strategic investments that will lead to increased global trade flows, we are keenly aware of the challenges and costs posed by official corruption, weak institutions, and lack of respect for property rights, including intellectual property. Weak governance and lack of transparency constitute non-tariff barriers to trade, which we have committed ourselves to eliminating. Furthermore, the same issues that deter trade and investment also work against comprehensive security: a lack of transparency in governance leads to diminished confidence that problems and disputes will be addressed in a fair and impartial manner. Without trust and confidence in public institutions, there is little incentive for investors and companies to pursue trade deals or direct investment in those economies. The effect is stagnating economic performance, which, as we have seen in the past several months and years, can lead to political upheaval. The United States Government is deeply committed to fostering good governance and transparency in its political and economic institutions. President Obama has made the global fight against corruption a top priority. As he has noted, “In too many places, the culture of the bribe is a brake on development and prosperity. It discourages entrepreneurship, destroys public trust, and undermines the rule of law while stifling economic growth.” The real world costs of corruption and weak institutions should not be underestimated. The World Bank estimates that more than one trillion dollars in bribes are paid each year out of a global economy of approximately 30 trillion dollars. That's an incredible three percent of the world’s economy. In 2009, companies lost nearly $25 billion to companies willing to pay bribes in deals for which the outcome is known. And bribery is especially costly for small and medium-size enterprises (SMEs): a separate study has shown that up to 25 percent of SME operating capital in companies operating internationally is diverted to corruption. That is a staggering figure that illustrates how corruption diverts scarce resources to thoroughly unproductive ends. Corruption is a global problem that knows no borders. And that’s why corruption demands a truly global response – one that knows no limits on collaboration. The Obama Administration is doing its part to implement its obligations under the OECD Anti-Bribery Convention by enforcing the U.S. Foreign Corrupt Practices Act (FCPA) strictly and fairly. We are determined to ensure that U.S. businesses do not contribute to corruption in foreign markets. At the same time, we are determined to do what we can to assist them in the fight against foreign corruption, and against the high risk and significant costs of corruption in such markets. Regrettably, at this stage, the lack of enforcement of domestic bribery laws, and of foreign bribery laws by many nations that are Parties to the OECD Anti-Bribery Convention is extremely troubling and raises concerns about a lack of political will. Governments can and should prosecute both those who give bribes and those who receive them, both at home and abroad. And the OSCE should continue to encourage participating States to adopt and enforce rigorous anti-bribery regimes. Of course, the fight against corruption is not simply a law enforcement matter; rather it can also be a significant – if not the most significant – non-tariff barrier all companies face. Accordingly, the U.S. Department of Commerce and the International Trade Administration (or ITA) are committed to working with our trading partners to level the playing field and to promote transparent and corruption-free markets globally. Our work to promote clean and ethical business environments occurs at both the multilateral and bilateral level. At the multilateral level, the ITA is pressing its counterparts to lead by example and to implement comprehensive anti-corruption measures. In addition to our work through the OECD, the United States has been working diligently to persuade the G20 countries to adopt a comprehensive anti-corruption action plan, which includes a commitment focused on adoption and robust enforcement of anti-bribery laws, implementation of the UN Convention Against Corruption, greater engagement with the private sector, and support for transparency mechanisms, to name a few. Many of these commitments require our G20 partners to enact and implement new laws and preventive measures. The United States, at ITA’s initiative, in particular, took the lead on proposals relating to the private sector and also on whistleblower protection, within the G20. In the United States, whistleblowers play a crucial role in helping to enforce anti-corruption law. This principle is also embodied in international conventions. Articles 12 and 13 of the UN Convention require States Parties to prevent corruption in the private sector and promote the fight against corruption with the business community and civil society. Unless governments can protect whistleblowers, it is unlikely that they can identify or address systemic causes of corruption. The United States believes robust whistleblower protection should be an essential part of any good governance initiative in the OSCE, and I was encouraged to hear Ambassador O’Leary indicate that this will be an area of focus under the Irish Chairmanship. The U.S. Department of Commerce has also been committed to fostering strong private sector integrity as an integral part of promoting good governance in markets worldwide. Companies are global corporate citizens, and as such, can work collectively and with governments to foster trust, and promote transparency. I hope that some our work may provide a useful model for the OSCE to consider as it looks to embrace good governance and anti-corruption as a priority for the second dimension, a goal we fully support, and which I am personally committed to supporting. For example, the ITA has championed business ethics and corporate governance reform since the early 1990s, following the fall of the Berlin Wall. Our Business Ethics Manual has been translated into Chinese, Spanish and Russian and is still one of the most widely used resources on this important topic. We have partnered with business associations and chambers of commerce to develop collective action and business ethics program in many markets. Our work on business ethics has grown. This past year, the ITA has focused on trying to heighten awareness of good governance, transparency and business ethics in sectors of vital importance to many economies – by taking a “sectoral” approach to combating corruption and promoting good business practice, the challenge of dealing with corruption becomes less daunting. The ethical issues specific to different industries vary greatly – and there is no one-size-fits-all approach to the problem. Within the G20, for example, the United States, at the initiative of the U.S. Department of Commerce, has taken the lead in calling for the G20 to endorse additional sectoral approaches to fighting corruption, beyond the Extractive Industries Transparency Initiative (EITI). We have asked G20 governments, for example, to consider supporting the Construction Sector Transparency Initiative (COST) – a new multistakeholder initiative, developed by the World Bank. COST uses similar approaches to EITI to promote greater transparency in public infrastructure projects and government procurement. I hope that the OSCE might similarly consider COST and other multistakeholder approaches to promoting transparency under the Irish chairmanship. Within APEC, the ITA has focused on developing new ethical principles for key sectors within the APEC region. I am pleased to report that under the APEC SME working group, we have coordinated a project with APEC countries and businesses to develop principles of business ethics in the construction, medical devices and biopharmaceutical sectors. These voluntary principles are meant to be used by businesses and trade associations – large andwithin the OSCE framework and the EEDIM, we might also consider focusing on business ethics in specific sectors of interest to all of our economies. I want to close by suggesting some activities to take the theme of good governance and transparency forward. In addition to encouraging the OSCE to formally endorse the Extractive Industries Transparency Initiative—a move that would send an important signal about this body’s commitment to the principles of good governance and transparency—the U.S. encourages us to explore whether there are additional sectoral initiatives that merit support from the OSCE, including the Construction Sector Transparency Initiative. The United States Government also strongly supports the Irish Chair’s goal to develop a Statement or Declaration of Transparency Principles to help guide our governments in their future activities. I want to encourage us to consider new models of bilateral cooperation to promote good governance such as the model Mr. Murray just discussed, leading to a public-private initiative in the Russian power generation sector. We at the U.S. Department of Commerce are working closely with the Center for Black Sea/Caspian Studies at American University to potentially convene a conference in May of next year that would seek to address the challenge of developing mechanisms to ensure good governance and transparency, while also balancing the goals of protecting national security and accelerating economic development faced by the countries of the Caucasus and Central Asia, as they seek to assert their role as a gateway between Europe and Asia. In addition, the conference will also focus on specific market access challenges to regional integration and economic development in the Caucasus and Central Asia such as transparency in Government procurement and privatization, and trade facilitation challenges, including customs and lack of regional harmonization. It is our hope that the OSCE will join us for this event – focused on critical areas such as transport and infrastructure – to work on tangible ideas for projects and collaborations in the OSCE region. We look forward with great interest to the 20th Economic and Environmental Forum, where we will delve deeper into all the facets of good governance. We also thank the Lithuanian Chairman-in-Office for  ensuring that their draft Ministerial Council decision on Energy Security incorporates transparency in the energy sector – in our view, considering the vital role that energy plays in modern economic life, there can be no confidence, and thus no security, without energy transparency. In the year ahead, we envision an even broader focus on transparency principles across the entire spectrum of economic and environmental activities, and will work with all of our colleagues in the OSCE to make that vision a reality. Thank you, Mr. Moderator.  

  • Commissioner Camuñez's Remarks on Good Governance

    Economic and Environmental Dimension Implementation Meeting Session 3: Good Governance Before I begin, I’d like to thank the panelists today for their excellent and informative presentations. The United States has viewed with keen interest the evolving discussions in recent years on what the OSCE’s priorities should be in the Economic and Environmental Dimension.  As our friend and colleague Mr. Svilanovic pointed out during last year’s Vienna Review Conference, we appear to have come to an appreciation that good governance is the key linking theme across the entire second dimension.  The Maastricht Strategy is very clear on this point: “Good public and corporate governance and strong institutions are essential foundations for a sound economy, which can attract investments, and thereby enable States to reduce poverty and inequality, to increase social integration and opportunities for all, and to protect the environment.  Good governance at all levels contributes to prosperity, stability and security.”  As we consider the implementation of our second dimension commitments, however, we should keep in mind why it is important to implement those commitments. The global economic downturn continues to put extreme pressure on people and governments across the OSCE region.  To be sure, some countries have weathered the storm better than others.  Still, no country can be forever immune to market forces, and even within those that have done well, there are always citizens left behind.  This is certainly the case in the United States, and for this reason President Obama is focused intently on how best to put those Americans without a job back to work.  We all know that trade and investment are critical drivers of economic growth.  Indeed, recognizing this important reality, the Obama Administration has launched the National Export Initiative, which seeks to deepen our strategic trade relationships around the world, recognizing that 85 percent of world GDP growth will occur outside the United States in the coming few years.  As we encourage more American businesses – large and small – to embrace international trade, seek opportunities in new markets, and make strategic investments that will lead to increased global trade flows, we are keenly aware of the challenges and costs posed by official corruption, weak institutions, and lack of respect for property rights, including intellectual property. Weak governance and lack of transparency constitute non-tariff barriers to trade, which we have committed ourselves to eliminating.  Furthermore, the same issues that deter trade and investment also work against comprehensive security: a lack of transparency in governance leads to diminished confidence that problems and disputes will be addressed in a fair and impartial manner.  Without trust and confidence in public institutions, there is little incentive for investors and companies to pursue trade deals or direct investment in those economies.  The effect is stagnating economic performance, which, as we have seen in the past several months and years, can lead to political upheaval.    The United States Government is deeply committed to fostering good governance and transparency in its political and economic institutions.  President Obama has made the global fight against corruption a top priority.  As he has noted, “In too many places, the culture of the bribe is a brake on development and prosperity.  It discourages entrepreneurship, destroys public trust, and undermines the rule of law while stifling economic growth.”    The real world costs of corruption and weak institutions should not be underestimated.  The World Bank estimates that more than one trillion dollars in bribes are paid each year out of a global economy of approximately 30 trillion dollars.  That's an incredible three percent of the world’s economy.   In 2009, companies lost nearly $25 billion to companies willing to pay bribes in deals for which the outcome is known.  And bribery is especially costly for small and medium-size enterprises (SMEs): a separate study has shown that up to 25 percent of SME operating capital in companies operating internationally is diverted to corruption.  That is a staggering figure that illustrates how corruption diverts scarce resources to thoroughly unproductive ends. Corruption is a global problem that knows no borders.  And that’s why corruption demands a truly global response – one that knows no limits on collaboration.  The Obama Administration is doing its part to implement its obligations under the OECD Anti-Bribery Convention by enforcing the U.S. Foreign Corrupt Practices Act (FCPA) strictly and fairly.  We are determined to ensure that U.S. businesses do not contribute to corruption in foreign markets.  At the same time, we are determined to do what we can to assist them in the fight against foreign corruption, and against the high risk and significant costs of corruption in such markets.   Regrettably, at this stage, the lack of enforcement of domestic bribery laws, and of foreign bribery laws by many nations that are Parties to the OECD Anti-Bribery Convention is extremely troubling and raises concerns about a lack of political will.  Governments can and should prosecute both those who give bribes and those who receive them, both at home and abroad.  And the OSCE should continue to encourage participating States to adopt and enforce rigorous anti-bribery regimes. Of course, the fight against corruption is not simply a law enforcement matter; rather it can also be a significant – if not the most significant – non-tariff barrier all companies face.  Accordingly, the U.S. Department of Commerce and the International Trade Administration (or ITA) are committed to working with our trading partners to level the playing field and to promote transparent and corruption-free markets globally.  Our work to promote clean and ethical business environments occurs at both the multilateral and bilateral level.  At the multilateral level, the ITA is pressing its counterparts to lead by example and to implement comprehensive anti-corruption measures.   In addition to our work through the OECD, the United States has been working diligently to persuade the G20 countries to adopt a comprehensive anti-corruption action plan, which includes a commitment focused on adoption and robust enforcement of anti-bribery laws, implementation of the UN Convention Against Corruption, greater engagement with the private sector, and support for transparency mechanisms, to name a few.  Many of these commitments require our G20 partners to enact and implement new laws and preventive measures.   The United States, at ITA’s initiative, in particular, took the lead on proposals relating to the private sector and also on whistleblower protection, within the G20.  In the United States, whistleblowers play a crucial role in helping to enforce anti-corruption law.  This principle is also embodied in international conventions.  Articles 12 and 13 of the UN Convention require States Parties to prevent corruption in the private sector and promote the fight against corruption with the business community and civil society.  Unless governments can protect whistleblowers, it is unlikely that they can identify or address systemic causes of corruption.  The United States believes robust whistleblower protection should be an essential part of any good governance initiative in the OSCE, and I was encouraged to hear Ambassador O’Leary indicate that this will be an area of focus under the Irish Chairmanship.   The U.S. Department of Commerce has also been committed to fostering strong private sector integrity as an integral part of promoting good governance in markets worldwide.  Companies are global corporate citizens, and as such, can work collectively and with governments to foster trust, and promote transparency.  I hope that some our work may provide a useful model for the OSCE to consider as it looks to embrace good governance and anti-corruption as a priority for the second dimension, a goal we fully support, and which I am personally committed to supporting. For example, the ITA has championed business ethics and corporate governance reform since the early 1990s, following the fall of the Berlin Wall.  Our Business Ethics Manual has been translated into Chinese, Spanish and Russian and is still one of the most widely used resources on this important topic.  We have partnered with business associations and chambers of commerce to develop collective action and business ethics program in many markets.   Our work on business ethics has grown.  This past year, the ITA has focused on trying to heighten awareness of good governance, transparency and business ethics in sectors of vital importance to many economies – by taking a “sectoral” approach to combating corruption and promoting good business practice, the challenge of dealing with corruption becomes less daunting.  The ethical issues specific to different industries vary greatly – and there is no one-size-fits-all approach to the problem.  Within the G20, for example, the United States, at the initiative of the U.S. Department of Commerce, has taken the lead in calling for the G20 to endorse additional sectoral approaches to fighting corruption, beyond the Extractive Industries Transparency Initiative (EITI).  We have asked G20 governments, for example, to consider supporting the Construction Sector Transparency Initiative (COST) – a new multistakeholder initiative, developed by the World Bank.  COST uses similar approaches to EITI to promote greater transparency in public infrastructure projects and government procurement.  I hope that the OSCE might similarly consider COST and other multistakeholder approaches to promoting transparency under the Irish chairmanship.     Within APEC, the ITA has focused on developing new ethical principles for key sectors within the APEC region.  I am pleased to report that under the APEC SME working group, we have coordinated a project with APEC countries and businesses to develop principles of business ethics in the construction, medical devices and biopharmaceutical sectors.  These voluntary principles are meant to be used by businesses and trade associations – large and small – to guide their ethical interactions with public officials and institutions.   I hope that within the OSCE framework and the EEDIM, we might also consider focusing on business ethics in specific sectors of interest to all of our economies.  I want to close by suggesting some activities to take the theme of good governance and transparency forward.  In addition to encouraging the OSCE to formally endorse the Extractive Industries Transparency Initiative—a move that would send an important signal about this body’s commitment to the principles of good governance and transparency—the U.S. encourages us to explore whether there are additional sectoral initiatives that merit support from the OSCE, including the Construction Sector Transparency Initiative.  The United States Government also strongly supports the Irish Chair’s goal to develop a Statement or Declaration of Transparency Principles to help guide our governments in their future activities. I want to encourage us to consider new models of bilateral cooperation to promote good governance such as the model Mr. Murray just discussed, leading to a public-private initiative in the Russian power generation sector.   We at the U.S. Department of Commerce are working closely with the Center for Black Sea/Caspian Studies at American University to potentially convene a conference in May of next year that would seek to address the challenge of developing mechanisms to ensure good governance and transparency, while also balancing the goals of protecting national security and accelerating economic development faced by the countries of the Caucasus and Central Asia, as they seek to assert their role as a gateway between Europe and Asia.  In addition, the conference will also focus on specific market access challenges to regional integration and economic development in the Caucasus and Central Asia such as transparency in Government procurement and privatization, and trade facilitation challenges, including customs and lack of regional harmonization.  It is our hope that the OSCE will join us for this event – focused on critical areas such as transport and infrastructure – to work on tangible ideas for projects and collaborations in the OSCE region. We look forward with great interest to the 20th Economic and Environmental Forum, where we will delve deeper into all the facets of good governance.  We also thank the Lithuanian Chairman-in-Office for ensuring that their draft Ministerial Council decision on Energy Security incorporates transparency in the energy sector – in our view, considering the vital role that energy plays in modern economic life, there can be no confidence, and thus no security, without energy transparency.  In the year ahead, we envision an even broader focus on transparency principles across the entire spectrum of economic and environmental activities, and will work with all of our colleagues in the OSCE to make that vision a reality. Thank you, Mr. Moderator.

  • Commissioner Camuñez's Opening Statement at the Economic and Environmental Dimension Implementation Meeting

    Economic and Environmental Dimension Implementation Meeting Opening Remarks On behalf of the United States, I would like to thank the Lithuanian Chairman-in-Office, Secretary General Zannier, Coordinator for Economic and Environmental Activities Svilanović, and of course our Austrian hosts for convening this inaugural Economic and Environmental Dimension Implementation Meeting and for providing a warm welcome to Vienna. It is an honor to be here today as head of the U.S. delegation to the OSCE, representing the U.S. Government in my capacity as an Assistant Secretary of Commerce for Market Access and Compliance (MAC) within the International Trade Administration, and as a Commissioner to the U.S. Helsinki Commission. As a Commerce Department Assistant Secretary for Market Access and Compliance, I am responsible for helping lead the effort to open new markets for U.S. companies, identifying and eliminating market access challenges such as non-tariff barriers to trade, and helping to monitor and enforce U.S. trade agreements and commitments. The work of the Environmental and Economic Dimension, especially that which focuses on transparency of markets and good governance, is closely aligned with the work we undertake in the International Trade Administration. I am here today to deliver the message that the U.S. Government is highly committed to making the second dimension even more effective and dynamic, and that we will do our part in ensuring that our economic and environmental commitments receive the same level of attention and scrutiny that those in the political-military and human dimensions currently enjoy. I will try to keep my remarks brief, but I think it is critical that we take a close look at the economic and environmental commitments as they were spelled out in the 2003 Maastricht Strategy. We still see Maastricht as the key blueprint for moving forward on all the  commitments that have come before, and in particular, note a number of areas where we could pursue significant, substantive action over the next few years to achieve measurable progress. Our commitments on economic cooperation have at their core the idea of connectedness to regional and global markets, to trade and investment networks, and to energy and transportation infrastructure, as a way to address emerging economic challenges and threats. In light of the global economic downturn, it is vital that we recommit ourselves to increasing cooperation through a variety of measures, including improving corporate governance and public management, eliminating unnecessary and discriminatory barriers to trade, continuing  to harmonize our regulations and standards where appropriate, taking further steps to combat financial crimes like bribery and money laundering, and increasing confidence through the incorporation of transparency principles in all of our public and private ventures. At the same time, in view of our progress made this year worldwide on  empowering women in the economy, first at the Invest for the Future Conference in Istanbul in January and most recently at the APEC Summit in San Francisco, we believe it is important to recognize the critical connection between women and strong economies, and to remove all barriers that prevent women from full and equal participation in the economy. I would like to focus my comments this morning on the subject of good governance, however. We have committed ourselves time and again to “good governance,” and while progress has been made, much work remains to be done. As stated in the 2003 Maastricht Strategy, achieving good governance will require a comprehensive, long-term strategic approach. In the view of the U.S. Government, good governance is the core theme within the economic and environmental dimension, and we are pleased that next year’s Forum will address the topic in a broad and detailed way. When we speak of good governance, we speak about governments having both the propensity and the competence to manage complex political and economic systems in a fair, fully inclusive, and transparent way. Anti-corruption is part of it, but not the whole picture. It’s about having transparent, clear and predictable legislative and regulatory frameworks that foster efficient and low-cost business formation and development, and most importantly allow and even encourage robust participation in the political and economic spheres by civil society. Let me say a few words about my agency’s past and current work in this area, reserving greater details and the highlights of a new proposal for Session III tomorrow. From 1998-2008, the U.S. Department of Commerce launched a Good Governance Program, focused on partnering with the public and private sectors in the countries of the former Soviet Union and Central-Eastern Europe. This work, focused on promoting sound corporate governance and business ethics, culminated in the publication of a Business Ethics Manual, a Commercial Dispute Resolution Handbook, and a Corporate Governance Manual translated into several languages and disseminated widely throughout the OSCE region. Today, we continue to work on numerous initiatives around the world, within multilateral fora such as APEC and the G20, which involve OSCE members, promoting consensus based principles focused on anticorruption. We have taken our business ethics work and branched out into new regions including Asia and Latin America. Despite a clear understanding of its importance, the lack of good governance and systemic corruption remain some of the single most important market access challenges for companies engaged in trade around the world. This is especially true for small and medium sized enterprises, which are the engine of economic growth and innovation throughout the world. The United States believes that addressing these issues can only lead to greater investment, economic prosperity and security. Over the next three days, we will discuss OSCE support for the Extractive Industries Transparency Initiative (EITI). I am pleased to report that the U.S. Department of Commerce played an important role in supporting the creation of the EITI in its initial phase. The OSCE now has a chance to follow in the steps of the G8 and G20, by endorsing the EITI, and I applaud the governments that have preceded the United States as implementers. The EITI is a great example of how shared commitments towards good governance and transparency in a vital sector to many countries can work and build sustained momentum and engagement between the private sector, governments and civil society. Tomorrow I will share more concrete information about the work that the U.S. Government and my Department have undertaken to promote good governance and to combat corruption. I am pleased to have an expert on business ethics and anti-corruption in the energy sector, as part of the U.S. delegation. Mr. Matthew Murray runs the Center for Business Ethics and Corporate Governance in St. Petersburg, Russia, and he’ll speak to you later about a good governance initiative involving public and private stakeholders in the power generation sector in Russia, which may serve as a model for similar programs in other OSCE countries. I am also pleased to have Kate Watters of Crude Accountability joining the U.S. delegation, who will provide some examples of how transparency is a critical component of enhancing security in the environmental sphere. A month ago, the Economic and Environmental Forum discussed the concept of sustainability and where efforts to promote sustainable practices stand in our region. Those discussions remind us that our commitments on sustainable development encompass a broad spectrum of activities related to efficiency, sound resource management, and the full involvement of all stakeholders in decision-making. Just to cite an example from the Prague Forum, we recognize that in order to further develop economies and markets in such varied areas as the Black Sea region and Central Asia we will need to address several problems: improving the efficiency of border crossings and building construction, tilting the energy mix towards cleaner fuels, harmonizing standards and practices across the region, and, just as critically, ensuring broad involvement of civil society in the decision-making on project proposal, design, and implementation. One thing that sets the OSCE apart from many other organizations addressing the environment is recognition of the clear connection between the environment and security. We recognize that many environmental disasters cannot be predicted or prevented. At the same time, greater transparency – through information sharing and civil society engagement – about possible security risks stemming from the environment will make it possible to prevent or mitigate more disasters, both natural and man-made. We also must recognize that failure to protect the environment is itself a security risk, putting increased pressure on populations facing dwindling resources of clean air and water, arable farmland, and adequate energy. Colleagues, The next three days provide a critical juncture and platform for finding consensus on measures that will improve our implementation of the OSCE commitments in the economic and environmental dimension. The Vilnius Ministerial is only a month and a half away; now is the time to summon the political will to find a way forward. We look forward to building consensus on decisions on energy security, to include good governance and transparency, and we welcome constructive dialogue on additional measures proposed on confidence-building initiatives and sustainable transport. We view these elements, along with sustainable development and protecting the environment, as the cornerstones of the Maastricht Strategy, and will be speaking about these over the next several days. Just a month ago, we found some convergence of opinion on discrete aspects of the second dimension. Let us expand that convergence to the entire dimension as we review our economic and environmental commitments over the next few days, with a view toward substantive deliverables for Vilnius. Thank you, Mr. Moderator.

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