Name

Economic Cooperation and Trade

In the Final Document of the Bonn Conference of April 1990, the participating States "[r]ecognize[d] that the performance of market-based economies relies primarily on the freedom of individual enterprise and the consequent economic growth." They also recognized "the relationship between political pluralism and market economies."

The OSCE does not promote trade specifically, but seeks to build within the participating States better regulatory and governance capacity so that corruption, excessive bureaucracy or other barriers to trade do not hinder economic cooperation.

In the Maastricht (2003) strategy document for the Economic and Environmental Dimension, the participating States recognized the importance of global and regional economic integration, and for the "establishment in the OSCE region of open and integrated markets functioning on the basis of compatible or harmonized rules and further liberalization."

The OSCE works closely with the UN Economic Commission for Europe (UNECE) to coordinate economic cooperation activities in the region to amplify the work of the UNECE and to avoid duplication of efforts.

Staff Contact: Paul Massaro, policy advisor

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  • Curbing Corruption through Corporate Transparency and Collaboration

    The United Kingdom has implemented some of the world’s most innovative anti-corruption policies. In particular, its public beneficial ownership registry is the only active one of its kind and its Joint Money Laundering Intelligence Taskforce models effective collaboration between law enforcement and the private sector. This briefing examined these policies and the United Kingdom’s broader strategy to counter illicit finance. Panelists discussed how the United Kingdom implements its policies, their successes and shortcomings, and what remains to be done. Though U.S. corporate transparency proposals take a non-public approach, panelists also discussed the lessons that the United States can draw from the British experience.

  • Shady Shipping

    Trade-based money laundering (TBML) is the process of disguising the proceeds of crime and moving value through the use of trade transactions in an attempt to legitimize their illicit origins. This highly sophisticated form of money laundering has become a favorite method for transnational criminals, dictators, and terrorists to move ill-gotten gains to new jurisdictions. This event examined what TBML is, how it works, and why it has become such a ubiquitous method of laundering money. Panelists also discussed the broader interplay of illicit commerce, global corruption, and TBML. Finally, panelists recommended practical steps the United States and non-governmental organizations can take to counter TBML.

  • Helsinki Commission to Hold Briefing on UK Anti-Corruption Policies

    WASHINGTON—The Commission on Security and Cooperation in Europe, also known as the Helsinki Commission, today announced the following briefing: CURBING CORRUPTION THROUGH CORPORATE TRANSPARENCY AND COLLABORATION The British Model Wednesday, May 29, 2019 9:00 a.m. Rayburn House Office Building Room 2128 Live Webcast: www.facebook.com/HelsinkiCommission The United Kingdom has implemented some of the world’s most innovative anti-corruption policies. In particular, its public beneficial ownership registry is the only active one of its kind and its Joint Money Laundering Intelligence Taskforce models effective collaboration between law enforcement and the private sector. This briefing will examine these policies and the United Kingdom’s broader strategy to counter illicit finance. Panelists will discuss how the United Kingdom implements its policies, their successes and shortcomings, and what remains to be done. Though U.S. corporate transparency proposals take a non-public approach, panelists will also discuss the lessons that the United States can draw from the British experience. Opening remarks will be provided by John Penrose, M.P., the U.K. Prime Minister’s Anti-Corruption Champion. The following panelists also are scheduled to participate: Mark Hays, Anti-Money Laundering Campaign Leader, Global Witness Edward Kitt, Serious and Organized Crime Network Illicit Finance Policy Lead, British Embassy Washington Nate Sibley, Research Fellow, Kleptocracy Initiative, Hudson Institute

  • Helsinki Commission and House Financial Services Committee Announce Joint Briefing on Trade-Based Money Laundering

    WASHINGTON—The Commission on Security and Cooperation in Europe, also known as the Helsinki Commission, in partnership with the House Financial Services Committee, today announced the following joint briefing: SHADY SHIPPING Understanding Trade-Based Money Laundering Friday, May 24, 2019 9:30 a.m. Rayburn House Office Building Room 2360 Live Webcast: www.facebook.com/HelsinkiCommission Trade-based money laundering (TBML) is the process of disguising the proceeds of crime and moving value through the use of trade transactions in an attempt to legitimize their illicit origins. This highly sophisticated form of money laundering has become a favorite method for transnational criminals, dictators, and terrorists to move ill-gotten gains to new jurisdictions. This event will examine what TBML is, how it works, and why it has become such a ubiquitous method of laundering money. Panelists will also discuss the broader interplay of illicit commerce, global corruption, and TBML. Finally, panelists will recommend practical steps the United States and non-governmental organizations can take to counter TBML. The following panelists are scheduled to participate: John Cassara, Special Agent, U.S. Department of the Treasury, retired Lakshmi Kumar, Policy Director, Global Financial Integrity David Luna, President and CEO, Luna Global Networks

  • Jackson Lee and Hudson Introduce Legislation to Fight Illicit Tobacco Trade

    WASHINGTON—Representatives Sheila Jackson Lee (TX-18) and Richard Hudson (NC-08) today introduced the Combating the Illicit Trade in Tobacco Products Act (CITTPA) in the House of Representatives. Both Rep. Jackson Lee and Rep. Hudson serve on ad hoc committees of the OSCE Parliamentary Assembly, which facilitates interparliamentary dialogue to advance human rights, military security, and economic cooperation in Europe, Central Asia, and North America. “The illicit trade in tobacco underpins some of the gravest transnational threats to the United States and our allies. Illicit tobacco trafficking is not a victimless offense; it facilitates other, more heinous crimes including money laundering and trafficking in weapons, drugs, antiquities, diamonds, counterfeit goods, and—worst of all—human beings,” said Rep. Jackson Lee. “Cigarette smuggling is not just an economic issue, it’s a public safety issue. Illegal cigarettes help finance organized crime and terrorism. Smuggled cigarettes are also more likely to end up in the hands of children and teens. The Combatting the Illicit Trade in Tobacco Products Act will give the United States better tools and more information to combat this dangerous activity,” said Rep. Hudson. The Combatting the Illicit Trade in Tobacco Products Act (CITTPA) would improve the U.S. Government’s ability to identify and deter those engaging in the trade of illicit tobacco. The bill would: Provide better information on countries involved with the illicit tobacco trade. The legislation requires the U.S. Secretary of State to report annually on which countries are determined to be a major source of illicit tobacco products or their components, and identify which foreign governments are actively engaged and knowingly profiting from this illicit trade. Enable the United States to deter countries involved in the illicit trade in tobacco, and better assist its allies. The bill grants the U.S. Secretary of State the ability to withhold U.S. foreign assistance from those countries knowingly profiting from the illicit trade in tobacco or its activities. In countries where the government is working to stop these trafficking efforts, the Secretary of State would be able to provide assistance for law enforcement training and investigative capacity. Help the United States target individuals assisting in the illicit tobacco trade. It authorizes the President of the United States to impose economic sanctions and travel restrictions on any foreign individual found to be engaged in the illicit tobacco trade, and requires the president to submit a list of those individuals to Congress. The Helsinki Commission organizes U.S. delegations to OSCE PA annual sessions and other meetings, as well as official delegations to participating States and other OSCE meetings to address democratic, economic, security, and human rights developments. The commission also convenes public hearings and briefings with expert witnesses on OSCE-related issues. In July 2017, the Helsinki Commission held a hearing on illicit trade in tobacco products, which included testimony from the academic community, the public health advocacy community, and industry.

  • Helsinki Commission Leaders Regret Closure of Central European University in Budapest

    WASHINGTON—Ahead of the impending December 1 closure of Central European University in Hungary, Helsinki Commission Chairman Sen. Roger Wicker (MS) and Ranking Senate Commissioner Sen. Ben Cardin (MD) issued the following statement: “We regret that Central European University (CEU) in Budapest will cease its operations in Hungary because of restrictions imposed by the Government of Hungary. Since its founding after the fall of communism, CEU has symbolized the renewal of academic freedom, Hungary's robust intellectual traditions, and the ties between Hungary and the rest of the world. With CEU’s closure, the Government of Hungary is shuttering a highly successful economic enterprise and an institution of higher learning that has earned respect around the world. “We commend Ambassador Cornstein for his efforts to foster a successful outcome. Although CEU met every condition demanded of it, the Hungarian Government was resolved not to take ‘yes’ for an answer.  At a time when this administration has worked to forge closer ties with Hungary, the Government of Hungary is taking an isolationist step, and Hungarians will lose this U.S.-accredited institution.” In 2017, the Hungarian legislature adopted a higher education law known as “Lex CEU,” which established criteria for universities operating in Hungary that award foreign-accredited degrees. In practice, the law affected only CEU. At the 2017 OSCE Parliamentary Assembly (PA) in Minsk, Belarus, parliamentarians from OSCE participating States expressed concern about the legislation, which “risk[s] undermining academic freedom, inhibiting research and development, and impeding scientific advancement.”

  • Belarus Reality Check

    On October 22, 2018, over 50 international analysts, practitioners, diplomats and policymakers gathered in Vilnius, Lithuania, for the eighth Belarus Reality Check, a full-day review of the Belarusian economy, political and human rights developments, and changes in the regional security situation in and around Belarus. Former Helsinki Commission Senior State Department Advisor Scott Rauland joined representatives of the IMF, the World Bank, Lithuania’s Foreign Ministry, the EU Ambassador to Belarus, and dozens of analysts from Belarus, Lithuania, Latvia, Poland, Ukraine, Germany, and other European nations for the event. Political Developments in Belarus During the first panel, presenters noted that sovereignty and stability remain top priorities for the Government of Belarus. Despite a great deal of work by the OSCE’s Office of Democracy Institutions and Human Rights (ODIHR) in recent years, its recommendations to improve Belarusian elections have still not been implemented, and panelists were skeptical that any action would be taken before parliamentary and presidential elections scheduled for 2020.  Although the Belarusian political opposition remains divided and marginalized, several panelists believed that support for the opposition is growing.  Unfortunately, there was consensus that Russian malign influence in Belarus is also growing, primarily via Russian exploitation of social media platforms in Belarus. The Belarusian Economy The second panel featured four presentations that examined challenges facing the Belarusian economy and analyzed the country’s agonizing choice between beginning long-overdue reforms or remaining dependent on Russian subsidies for oil and gas to shore up failing state-owned enterprises (SOEs).  Panelists pointed out that— due largely to those subsidies—the Belarusian economy has fared better than many of its neighbors for years, and that Belarusians enjoy a better standard of living than a number of their Eastern European counterparts.  Polling by the IPM Research Center has shown that a top priority for Belarusians, and thus for the Government of Belarus, is low inflation.  According to the same study, most Belarusians are satisfied with the current state of affairs. Should the subsidies end, Belarus could face a true crisis.  Belarusian Foreign Policy The final panel discussed Belarusian relations with its neighbors—strangely including China, but omitting the U.S.  Positive trend lines were noted for Belarusian relations with all major countries except Russia, and international organizations have demonstrated increased interest in Belarus. In particular, OSCE Secretary General Greminger visited Belarus for a third time in 2018.  Anaïs Marin of France, recently appointed as UN Special Rapporteur on Belarus, remarked that progress had been made by Belarus on its 2016 National Action Plan on Human Rights, but described continuing Belarusian support of the death penalty as something that required continued scrutiny by the international community.  One analyst took EU policy to task for “aiming at progress, not results.”  Russian policy in Belarus, he claimed, is intended to produce results—namely, to keep Belarus under control and on a short leash.  Another panelist described the conundrum of trying to contain Russian influence in Belarus: “We can’t get rid of Russian influence (money) in Latvia or London; how can we expect to get them out of Belarus?” In a concluding question and answer session, Rauland—who served as charge d’affaires at the U.S. Embassy in Minsk from June 2014 through July 2016—asked the panel to comment on the diverging EU and U.S. strategies on Belarus, noting that the EU had decided to lift sanctions on Belarus completely in 2016, while the U.S. had merely suspended them while awaiting further improvements in human rights.  The panelist who responded to that question described EU policy as a mistake, noting that political prisoners had been released (the event which triggered sanctions relief by the EU), but that their civil rights had not been restored, something he felt should have been a condition for the EU completely lifting sanctions. Answers to a question earlier in the day, asking whether panelists were optimistic about the future for Belarus, may have captured the range of views of the participants best of all.  “Yes,” replied the first to answer.  “I’m ‘realistic’ about progress,” replied the next panelist.  “And I’m an optimistic realist,” concluded the third. The event was organized by the Eastern Europe Studies Centre with the support of USAID, Pact and Forum Syd, together with programmatic contributions from the Carnegie Endowment for International Peace.

  • Incorporation Transparency

    “Steal in Russia and spend in the West” is how Kremlin critic Vladimir Kara-Murza describes the behavior of Russian President Vladimir Putin and his associates. A similar principle has become commonplace in most authoritarian regimes. Countries in which the rule of law is strong find themselves at risk from ill-gotten gains that autocrats have hidden within their borders. Not only does this make them complicit in the perpetuation of corruption abroad, but it also provides hidden “sleeper capital” through which autocrats and their cronies can exert influence domestically. The countries in which money is most often hidden—the United States, the United Kingdom, and many countries of the European Union, especially France and Germany—have a strong rule of law system and desirable markets. In their large cities, representatives of autocratic systems can purchase real estate, retain lawyers and PR firms to conduct influence operations and reputation laundering, and access elite circles and high society thanks to their illicit wealth. However, in the last few years, these countries have become more aware of the infiltration of their markets by authoritarian finance and have taken steps to curb its flow into their borders. They have sought to fortify themselves through a variety of measures, including beneficial ownership transparency (BOT). BOT is a government policy which requires incorporated entities to report their “beneficial owners”: the real individuals who ultimately enjoy the benefits of ownership of a company or property, or the underlying asset of value. Beneficial ownership data is then available to law enforcement or the public. This is vital to transparency because, in many jurisdictions, beneficial owners do not necessarily need to be listed on legal paperwork—they may list “nominee owners” who hold assets on their behalf. While anonymous shell companies have legitimate uses, they are often abused to launder money. Autocrats can create a chain of such companies across many jurisdictions, evading law enforcement and moving stolen money from company to company until that money is nearly untraceable. At that point, the money is considered “washed” and can be used for all manner of ostensibly legitimate purposes. Download the full report to learn more. Contributor: Paul Massaro, Policy Advisor

  • Free-Trade Zones

    Free-trade zones (FTZs) are duty-free areas within a country’s borders designed to encourage economic development by allowing goods to be imported and exported under less restrictive conditions than are present elsewhere in that country. In many places, these zones generate jobs and revenue; however, they also are hospitable to illicit trade and money laundering. In the worst cases, law enforcement fails and FTZs become global hubs of criminal activity. According to Dr. Clay Fuller of the American Enterprise Institute, attempts to study FTZs are often thwarted by discrepancies in the definition and measurement of FTZs, a lack of coordination between the private and public sectors to collect data, and a dearth of globally aggregated data. Dr. Fuller agreed that FTZs have played a role in fostering corruption and suggested that better aggregate data is needed to reach further conclusions.  Essential to overcoming their challenges, FTZs must first be identified in a standardized format before the data can be accurately amalgamated. The Organization for Economic Cooperation and Development (OECD) has begun to study these problems from a global perspective through its Task Force on Countering Illicit Trade. Jack Radisch, Senior Project Manager at the OECD, reported that the trade in fakes is a $461 billion industry. This problem is exacerbated by FTZs, which can enable the movement of illegal goods. Stephane Jacobzone, Deputy Head of OECD’s Public Governance Division, expressed concerns about global “governance gaps,” such as those created by FTZs with poor oversight, which allow criminal activity to thrive. Pedro Assares Rodrigues, a EUROPOL Representative with the Europol Liaison Bureau, underscored the significance of global coordination by discussing the risk of FTZs to harbor terrorist activity. The United States and EUROPOL have united to combat global security threats through projects such as the Secure Information Exchange Network Application, allowing the US and EU to work efficiently and securely. Alongside Mr. Assares Rodrigues’ call for greater international coordination, panelists offered potential policy responses to criminal activities within the FTZs from both the private and public sectors.  For example, Dr. Fuller proposed that private companies should be enlisted to report data on FTZs, though he stipulated that government must protect the privacy of companies throughout the process. Dr. Fuller also added that countries that already participate in international data sharing agreements or multilateral conversations about FTZs should beseech their trading partners to join these same data-sharing partnerships.  Mr. Radisch and Mr. Jacobzone added that the OECD is working toward a comprehensive FTZ “code of conduct” that could eventually be adopted by member states.

  • Helsinki Commission Briefing to Examine Value and Hazards of Free-Trade Zones

    WASHINGTON—The Commission on Security and Cooperation in Europe, also known as the Helsinki Commission, today announced the following briefing: FREE-TRADE ZONES: PRODUCTIVE OR DESTRUCTIVE? Wednesday, September 12, 2018 3:00 p.m. Russell Senate Office Building Room 385 Live Webcast: www.facebook.com/HelsinkiCommission Free-trade zones (FTZs) are duty-free areas within a country’s borders designed to encourage economic development by allowing goods to be imported and exported under less restrictive conditions than are present elsewhere in that country. In many places, these zones generate jobs and revenue; however, they also are hospitable to illicit trade and money laundering. In the worst cases, law enforcement fails and FTZs become global hubs of criminal activity. This briefing will explore the value of FTZs across the world and the potential for reform, especially in areas where laws are poorly enforced. Participants will discuss the interplay of globalized corruption, transnational criminal organizations, and authoritarianism in and around FTZs; provide data on how these factors lubricate the movement of illicit goods; and recommend policy responses. The following panelists are scheduled to participate: Dr. Clay Fuller, Jeane Kirkpatrick Fellow, American Enterprise Institute Jack Radisch, Senior Project Manager, OECD High Level Risk Forum Pedro Assares Rodrigues, Europol Representative, Europol Liaison Bureau  

  • Transatlantic Relations in Flux

    Following recent changes to the U.S. approach to economic and security policies in Europe, and a series of internal European developments—such as the recent influx of migrants and refugees, challenges to the rule of law, and Brexit—the transatlantic relationship is evolving rapidly. At the briefing, Members of the European Parliament (MEPs) discussed current obstacles in the transatlantic relationship and identified opportunities to strengthen the relationship moving forward.    MEP Claude Moraes of the United Kingdom kicked off the conversation by remarking on the importance of the European Union’s relationship with the United States. Moraes outlined concerns shared by the EU and the United States, ranging from commercial and security data transfers to counterterrorism and cybersecurity. “It’s about ensuring that we protect our democracies, our elections from interference, as we’ve seen from Russia,” Moraes said. Moraes also discussed the importance of security cooperation and BREXIT’s impact on the transatlantic relationship. “The EU is a good thing,” he said, noting that the EU magnifies the U.K.’s global ability to work with other countries on security and counterterrorism issues. For example, following BREXIT the U.K. is likely to lose some of its access to Europol, an EU-wide law enforcement agency that coordinates the sharing of intelligence, data, and other resources between EU Member States. Noting that the original goals of the 1975 Helsinki Final Act were to promote and defend democracy, MEP Michał Boni of Poland highlighted obstacles on both sides of the Atlantic to an ideal transatlantic relationship. On the U.S. side, he cited trade wars, waning diplomacy, and political uncertainty and instability. On the EU side, he lamented the rise of “illiberalism” across the continent, including challenges to democratic principles in Poland, Hungary, Romania, the Czech Republic, and Italy.   If the transatlantic relationship is to advance into the future, “we need now to start and to fight for the democracy, freedoms, and rule of law on both sides of Atlantic,” Boni said. French MEP Nathalie Griesbeck observed that the United States is the EU’s most important partner in the fight against terrorism and praised the skills of the U.S. intelligence community, noting that transatlantic intelligence-sharing efforts had prevented terror attacks across Europe.  “The European Union and the United States should use all available channels of communication in order to strengthen the transatlantic relationship [and] use the full potential of that cooperation to preserve the democratic, liberal, and multilateral order to promote stability and continuity on the continents […] even if the winds are sometimes bad,” she said. Panelists also addressed the question of whether migration to Europe could be capitalized upon to address the EU’s shrinking workforce and the need to preserve Europe’s economic future. They agreed that with efforts to attract highly skilled workers falling short, Europe must juggle political pushback against increased migration with the reality of an aging population. The MEPs also discussed the recent EU-Japan trade agreement, the EU’s Eastern Partnership, Turkey, the Western Balkans, and EU enlargement.

  • Members of European Parliament to Assess Transatlantic Relations at Helsinki Commission Briefing

    WASHINGTON—The Commission on Security and Cooperation in Europe, also known as the Helsinki Commission, today announced the following briefing: TRANSATLANTIC RELATIONS IN FLUX Wednesday, July 18, 2018 10:00 a.m. Hart Senate Office Building Room 216 Live Webcast: www.facebook.com/HelsinkiCommission Following President Trump’s recent trip to Europe, leading European policymakers will address the state of transatlantic relations. Members of the European Parliament will discuss the potential impact of changing U.S. economic and security policies in the region, the future of the EU following Brexit, and the toll that increased migration has taken on European political cohesion. Opening remarks will be provided by Helsinki Commission Chairman Sen. Roger Wicker (MS). The following Members of the European Parliament are scheduled to participate: MEP Nathalie Griesbeck (France), Chair, European Parliament Special Committee on Terrorism; Alliance of Liberals and Democrats MEP Claude Moraes (UK), Chair, European Parliament Committee on Civil Liberties, Justice, and Home Affairs; Progressive Alliance of Socialists and Democrats MEP Michal Boni (Poland), European People's Party Additional speakers may be added.  

  • Roundtable on Illicit Trade

    Illicit trade—the transnational smuggling of illegal goods—has grown dramatically in the era of globalization thanks to modern technology, free trade zones, and the absence of the rule of law in many countries. Today, the shadow economy is booming and is estimated to account for up to 8 to 15 percent of world GDP. This roundtable brought U.S. government officials together with representatives of companies, associations, and organizations working to combat illicit trade. Participants discussed policy responses to the growing threat of illicit trade and how to build effective public-private partnerships. Officials from the intelligence community, the Department of Homeland Security, and the Department of State discussed their agencies’ roles in the struggle to stem the tide of illicit trade. Click here to see the full list of participants.

  • Helsinki Commission to Host Roundtable On Illicit Trade

    WASHINGTON—The Commission on Security and Cooperation in Europe, also known as the Helsinki Commission, today announced the following briefing: ROUNDTABLE ON ILLICIT TRADE Thursday, June 21, 2018 1:00 p.m. Russell Senate Office Building Room 485 Live Webcast: www.facebook.com/HelsinkiCommission Illicit trade—the transnational smuggling of illegal goods—has grown dramatically in the era of globalization thanks to modern technology, free trade zones, and the absence of the rule of law in many countries. Today, the shadow economy is booming and is estimated to account for up to 8 to 15 percent of world GDP. This roundtable will bring U.S. government officials together with representatives of companies, associations, and organizations working to combat illicit trade. Participants will discuss policy responses to the growing threat of illicit trade and how to build effective public-private partnerships. Officials from the intelligence community, the Department of Homeland Security, and the Department of State will discuss their agencies’ roles in the struggle to stem the tide of illicit trade. Discussion will follow each presentation. Participants include: Russ Travers, Acting Director, National Counterterrorism Center, Office of the Director of National Intelligence Convergence: How illicit trade networks fit in with other illicit networks Christa Brzozowski, Deputy Assistant Secretary, Trade and Transport, Department of Homeland Security Contraband: How to stop the flow of illicit goods Lisa Dyer, Director, Office of Intellectual Property Enforcement, Department of State Counterfeiting: How to combat the violation of IP protections Aaron Seres, Acting Section Chief, Financial Crimes Section, FBI Corruption and Organized Crime: How to counter those who facilitate illicit trade The event is open to the public.

  • The Opioid Crisis and the Dark Web

    The opioid crisis is devastating the health and well-being of Americans. Following a dramatic increase in the use of prescription opioid painkillers in the late 1990s, the crisis now kills more than 40,000 people in the United States annually. Experts estimate that millions more abuse prescription opioids each year, many of whom later turn to heroin. Transnational criminal organizations are one of the driving forces behind the intensity of the opioid crisis. By taking advantage of anonymous online marketplaces and legal delivery services, they can smuggle deadly drugs like fentanyl into the United States in a low-risk, high-reward way. This briefing traced the criminal networks that produce these drugs, market them on the dark web, and smuggle them into the United States to better understand how the public and private sectors can more effectively respond to this crisis and save thousands of American lives.

  • Transnational Criminal Organizations and the Opioid Crisis to Be Examined at Helsinki Commission Briefing

    WASHINGTON—The Commission on Security and Cooperation in Europe, also known as the Helsinki Commission, today announced the following briefing: THE OPIOID CRISIS AND THE DARK WEB: HOW TRANSNATIONAL CRIMINALS DEVASTATE U.S. COMMUNITIES Wednesday, March 28, 2018 3:30 p.m. Russell Senate Office Building Room 485 Live Webcast: www.facebook.com/HelsinkiCommission The opioid crisis is devastating the health and well-being of Americans. Following a dramatic increase in the use of prescription opioid painkillers in the late 1990s, the crisis now kills more than 40,000 people in the United States annually. Experts estimate that millions more abuse prescription opioids each year, many of whom later turn to heroin. Transnational criminal organizations are one of the driving forces behind the intensity of the opioid crisis. By taking advantage of anonymous online marketplaces and legal delivery services, they can smuggle deadly drugs like fentanyl into the United States in a low-risk, high-reward way. This briefing will trace the criminal networks that produce these drugs, market them on the dark web, and smuggle them into the United States to better understand how the public and private sectors can more effectively respond to this crisis and save thousands of American lives. The following panelists are scheduled to participate: Kemp Chester, Associate Director of the National Heroin Coordination Group, Office of National Drug Control Policy John Clark, Vice President and Chief Security Officer, Global Security, Pfizer Inc. Louise Shelley, Director, Terrorism, Transnational Crime, and Corruption Center (TraCCC); Professor, George Mason University

  • A New Ocean in the North: Perils and Possibilities

    Increasingly navigable waters and technological advances have opened the Arctic to further exploration, and an abundance of natural resources is driving investment in the region. Given the Arctic’s economic potential and environmental implications, the “High North” is likely to become a new theater of international engagement. As one of eight Arctic nations, the United States holds a vested interest in encouraging economic development in the region. However, U.S. Arctic infrastructure is underdeveloped and is dwarfed by Russia’s investment in the region. Moreover, like other Arctic nations, the United States must contend with the challenge posed by melting ice caps and rising sea levels. The briefing examined the importance of the development of Arctic infrastructure as the Organization for Security and Cooperation in Europe’s (OSCE) least-developed region becomes more accessible. It also analyzed the challenges faced by the international community to promote greater cooperation in unlocking the region’s potential.

  • Arctic Development to Be Discussed at Helsinki Commission Briefing

    WASHINGTON—The Commission on Security and Cooperation in Europe, also known as the Helsinki Commission, in conjunction with the Senate Arctic Caucus, Senate Oceans Caucus, and Congressional Arctic Working Group, today announced the following briefing: A NEW OCEAN IN THE NORTH: PERILS AND POSSIBILITIES Thursday, October 5, 2017 3:30 PM – 5:00 PM Dirksen Senate Office Building Room G11 Live Webcast: www.facebook.com/HelsinkiCommission Increasingly navigable waters and technological advances have opened the Arctic to further exploration, and an abundance of natural resources is driving investment in the region. Given the Arctic’s economic potential and environmental implications, the “High North” is likely to become a new theater of international engagement. As one of eight Arctic nations, the United States holds a vested interest in encouraging economic development in the region. However, U.S. Arctic infrastructure is underdeveloped and is dwarfed by Russia’s investment in the region. Moreover, like other Arctic nations, the United States must contend with the challenge posed by melting ice caps and rising sea levels. The briefing will examine the importance of the development of Arctic infrastructure as the Organization for Security and Cooperation in Europe’s (OSCE) least-developed region becomes more accessible. It will also analyze the challenges faced by the international community to promote greater cooperation in unlocking the region’s potential. The following panelists are scheduled to speak: Julie Gourley, Senior Arctic Official, U.S. Department of State Iina Peltonen, Embassy of Finland in the United States Rear Admiral Michael F. McAllister, Commander, 17th Coast Guard District, U.S. Coast Guard Melanie Bahnke, President and CEO, Kawerak, Inc. Mark Smith, CEO, Vitus Energy

  • OSCE Debates Environmental Policy and Economic Development in Prague

    By Paul Massaro, Policy Advisor From September 6 to September 8, 2017, the OSCE convened the 25th Concluding Meeting of the Economic and Environmental Forum. This annual conference brings together participating States for a wide-ranging discussion on policy as relates to the Second Dimension of the OSCE, or economic and environmental issues. The theme of the 2017 conference was “Greening the Economy and Building Partnerships for Security in the OSCE Region,” a topic selected by Austria, the current OSCE Chair-in-Office. At a time when natural disasters like Hurricanes Harvey, Irma, and Maria are devastating U.S. communities, such a discussion could not be more relevant. Add to that the joblessness and low growth rates that continue to plague many parts of the region and you have a broad debate on the issues that most impact the everyday life of citizens of the OSCE region. The Forum took the form of a series of thematic panels featuring experts drawn from the UN, the NGO community, and academia, as well as from the relevant ministries of OSCE participating States. Forum participants were particularly concerned with the effect that climate change is having on the frequency and magnitude of natural disasters, as illustrated by the extreme weather in the Caribbean and the United States. Much of the conference was devoted to discussing energy efficiency measures and renewable energy as a means to counteract the effects of burning fossil fuels on the environment. Experts agreed that energy efficiency and renewable energy are not separable concepts: the latter must be pursued to achieve the former. Participants were also deeply concerned about youth unemployment, especially in relation to violent extremism. Many participating States struggle with unemployment or underemployment, which exacerbates the factors that lead youth to radicalize. Experts discussed countering violent extremism through more flexible labor market policies as well as addressing the exploitation of unemployment or underemployment by extremist recruiters. Connectivity—transport, trade facilitation, and economic cooperation—was also discussed extensively. (Connectivity is distinct from economic integration, which envisions a deeper level of policy harmonization.) Experts and representatives from participating States generally agreed that two regions in particular could profit mightily from expanded connectivity: Southeastern Europe, or the Balkans region, where important steps toward greater connectivity are being made, and Central Asia, which remains among the regions with the lowest interregional trade in the world. The economic and environmental situation in the Eastern Donbas was also an important part of the discussion. Experts expressed severe concern that the shelling in the industrial region could lead to ecological disaster should, for example, the chemical plants that dot the area be hit and their chemicals seep into drinking water. Participants also discussed how to reestablish connectivity in this region, which once was a cohesive economic sphere. However, representatives from participating States argued that any discussion of regional connectivity would be for naught until Russia ceases its backing of militants in the region and enables a ceasefire to take effect. Generally speaking, the mood of the conference was one of consensus. Despite disagreements on certain issues, participating States tend to be of one mind when it comes to the need to prevent and prepare for natural disasters, increase energy efficiency, and encourage job and business creation, all topics that made up the majority of the discussions at the 25th Concluding Meeting of the Economic and Environmental Forum. Although minor disagreements cropped up in all of these topics, they were ephemeral and did not lead to prolonged debate. This general consensus may be a result of the fact that the arguably most controversial aspect of the OSCE’s Second Dimension, anti-corruption, was absent from all discussions. This is because this topic was addressed at the 2nd Preparatory Meeting of the 25th OSCE Economic & Environmental Forum in Astana and likely also because it was not a critical aspect of the theme of the Chair-in-Office. Nonetheless, at least a single panel on the topic would have been a welcome addition given its central importance to good governance. All in all, the Forum was a smooth and useful exercise that provided participating States with many worthwhile insights. Paul Massaro attended the conference as a representative of the U.S. Helsinki Commission.

  • Taming the OSCE’s Least-Developed Region: the Arctic

    By Paul Massaro, Policy Advisor, U.S. Helsinki Commission, Dave Zwirblis, Coast Guard Fellow, Office of Chairman Roger F. Wicker, Neal McMillian, NOAA Fellow, Office of Chairman Roger F. Wicker, and Alanna Schenk, Intern, U.S. Helsinki Commission The Arctic region—with its rapidly growing ecological, political, and economic importance—is almost as large as Africa, yet it is often overlooked in critical policy debates. As an Arctic nation and one of two nuclear powers within the region, the United States is central to Arctic development and maintaining the stability of the region. Despite including all eight Arctic nations, the Organization for Security and Cooperation in Europe (OSCE) has been largely dormant when it comes to Arctic issues. However, the OSCE Parliamentary Assembly (OSCE PA) includes a Special Representative for Arctic Issues, Ola Elvestuen of Norway, and has passed resolutions on the Arctic at its Annual Sessions, including as part of the 2010 Oslo Declaration and the 2013 Istanbul Declaration. Given the growing importance of the Arctic, the OSCE has many opportunities to increase its engagement in the Second Dimension—its portfolio of economic and environmental issues—in ways that would supplement the work of the Arctic Council, the primary intergovernmental actor in the region. Economic Opportunities In the near future, there likely will be a significant rise in human activity along the Northern Route. As sea ice melts, new shipping lanes are opening up offering unprecedented access to trade routes, natural resources, and even tourism opportunities. For example, the CRYSTAL SERENITY, a 1,000 passenger luxury cruise liner, is conducting a first of its kind month-long Arctic cruise through the Northwest Passage in summer 2017.  Increased maritime traffic and engagement stemming from these economic opportunities present numerous new challenges for the Arctic nations.  The Arctic region remains underdeveloped and lacking in critical infrastructure. The absence of continuous and robust U.S. and international community assets means response to any type of transportation or environmental disaster in these remote areas would be extremely slow and difficult to execute. Additionally, only 4.7 percent of the U.S. Arctic and 9 percent of the total Arctic waterways are charted to modern navigation standards.  Any increase in economic development and shipping in the Arctic will require cooperation from all stakeholder nations to build up the emergency infrastructure and provide the icebreaker vessels necessary to conduct pollution response and cleanup, search and rescue, and maritime security operations. Currently, the U.S. Coast Guard only has two polar icebreakers in operation.  These vessels break channels through the ice to maintain shipping lanes, perform search and rescue and law enforcement operations, and act as platforms for scientific research.  The Coast Guard’s oldest icebreaker and only one capable of heavy icebreaking, the POLAR STAR, was commissioned in 1976 and is operating well past its intended service life. If this vessel were to break down, it would be a single point of failure in the United States’ ability to protect its sovereign interests throughout the Arctic.  According to a 2011 Coast Guard assessment, the agency will need a minimum of six icebreakers to fulfill its statutory missions in the polar regions.  In an effort to recapitalize its aging icebreaker fleet, the Coast Guard plans to award a contract to a U.S. shipbuilder in 2019 with anticipated delivery of the first vessel by December 2022. Other Arctic nations, including Canada, Sweden, Finland and Demark have limited icebreaking capability as well. Russia currently owns and operates a fleet of more than 40 icebreakers. Ensuring that the increasing economic activity in the Arctic region is sustainable can only be achieved if the Arctic nations become fully engaged as soon as possible. It is imperative that this infrastructure is developed responsibly and sustainably with regard for the Arctic land and people—whether it is through low-effect shipping, sustainable shipping lanes, or science-based marine management.  Throughout this economic development, engaging and involving the native Arctic peoples will be vital to integrate Arctic communities into the global economy during this time of rapid change. Environmental Challenges The way that the Arctic nations respond to the changing climate and its respective perils and possibilities will shape the world’s response to climate change and the future of international cooperation.  Science and technology in the Arctic present opportunities for this collaboration. The Arctic is an emerging hotbed for scientific research.  Much is still to be learned regarding ice sheets, under-ice conditions, glacial dynamics, polar ecosystems, and biodiversity.  In the face of rapid ecological changes, it is vital for the international science community to come together to gather baseline information and develop the infrastructure to monitor the ecological changes. Based on temperature changes and shifts in food regimes, species are moving around the Arctic, shifting from territorial waters into the newly accessible Arctic high seas.  While commercial fleets have yet to coalesce in the high-seas Arctic, the international community has the unique opportunity to develop governance frameworks and complete baseline studies in anticipation of the new fishery.  In 2015, five Arctic nations—the United States, Canada, Russia, Denmark, and Norway—agreed to halt high seas fishing in the Arctic until research gaps on the condition of the emerging fisheries were better understood.  Oil spill prevention and response as well as search and rescue are areas where infrastructure is minimal in the Arctic. Emergency response efforts are hindered by an absence of basic logistical support and infrastructure. Furthermore, while private companies have invested in infrastructure related to oil and gas exploration and extraction, this is not sufficient to fulfill infrastructure needs and additional investment will be required.

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