02 May
EACC

Statement by Commission President von der Leyen following the announcement by Gazprom on the disruption of gas deliveries to certain EU Member States

The announcement by Gazprom that it is unilaterally stopping delivery of gas to customers in Europe is yet another attempt by Russia to use gas as an instrument of blackmail.
This is unjustified and unacceptable.
And it shows once again the unreliability of Russia as a gas supplier.
We are prepared for this scenario. We are in close contact with all Member States.
We have been working to ensure alternative deliveries and the best possible storage levels across the EU.
Member States have put in place contingency plans for just such a scenario and we worked with them in coordination and solidarity.
A meeting of the gas coordination group is taking place right now.
We are mapping out our coordinated EU response.
We will also continue working with international partners to secure alternative flows.
And I will continue working with European and world leaders to ensure the security of energy supply in Europe.
Europeans can trust that we stand united and in full solidarity with the Member States impacted in the face of this new challenge. Europeans can count on our full support.
Compliments of the European Commission.
The post Statement by Commission President von der Leyen following the announcement by Gazprom on the disruption of gas deliveries to certain EU Member States first appeared on European American Chamber of Commerce New York [EACCNY] | Your Partner for Transatlantic Business Resources.

02 May
EACC

EU takes steps to suspend all duties on imports from Ukraine

The European Commission has proposed today to suspend for one year import duties on all Ukrainian exports to the European Union. The proposal, which is an unprecedented gesture of support for a country at war, would also see the suspension for one year of all EU anti-dumping and safeguard measures in place on Ukrainian steel exports.
This far-reaching step is designed to help boost Ukraine’s exports to the EU. It will help alleviate the difficult situation of Ukrainian producers and exporters in the face of Russia’s military invasion.
European Commission President Ursula von der Leyen, said: “Russia’s unprovoked and unjustified aggression is severely affecting the Ukrainian economy.  I have been in discussions with President Zelensky on ways of supporting the economy, beyond the macro-financial assistance and grants we are providing. We both agree on the critical importance of a quick and broad import duty suspension to boost Ukraine’s economy. The step we are taking today responds to this call. It will greatly facilitate the export of Ukrainian industrial and agricultural goods to the EU. We continue to stand by Ukraine in these dire times.”
European Commission Executive Vice-President and Commissioner for Trade Valdis Dombrovskis, said: “The EU has never before delivered such trade liberalisation measures, which are unprecedented in their scale: granting Ukraine zero tariff, zero quota access to the EU market. Since the start of Russia’s aggression, the EU has prioritised the importance of keeping Ukraine’s economy going – which is crucial both to help it win this war and to get back on its feet post-war. These measures will directly help Ukrainian producers and exporters. They will inject confidence into the Ukrainian economy and send a strong signal that the EU will to do whatever it takes to help Ukraine in its hour of need.”
As well as leading to tragic loss of life and mass displacement of innocent civilians of Ukraine, the Russian military aggression is having a devastating impact on Ukraine’s economy and its ability to trade with the rest of the world due to the severe impact on its production capacity and vital export routes. In this difficult context, the EU wants to do as much as possible to help Ukraine to maintain its trade position with the rest of the world and further deepen its trade relations with the EU.
The EU is also already taking measures on the ground to facilitate overland goods transport to help to get Ukrainian products out into the world. For example, the Commission has already started liberalising the conditions for Ukrainian truck drivers transporting goods between Ukraine and the EU, as well as facilitating transit and the use of EU infrastructure to channel Ukrainian exports towards third countries. These measures will add much-needed flexibility and certainty for Ukrainian producers.
Background
In 2021, with an ambitious agenda of implementation of the Deep and Comprehensive Free Trade Area (DCFTA), bilateral EU-Ukraine trade had reached its highest level since the entry into force of the DCFTA (more than €52 billion, double the value prior to entry into force of the DCFTA in 2016). With the Russian invasion, the Ukrainian economy and its trade with the world have suffered immensely. Alongside the raft of measures in various fields the EU has taken to support Ukraine, from imposing sanctions on Russia to providing funding for military aid, these trade measures will strengthen the EU’s economic assistance to Ukraine and keep its access to the world open as it faces Russia’s aggression. The last EU-Ukraine Summit (12 October 2021) reflected a number of positive ongoing processes, such as the launch of the Article 29 review on further trade liberalisation.
Next steps
The proposal now needs to be considered and agreed by the European Parliament and the Council of the European Union.
Compliments of the European Commission.
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02 May
EACC

OECD countries advancing slowly on sustainable development targets by 2030

Despite progress made since the adoption of the 2030 Agenda for Sustainable Development and its 17 Goals (SDGs), OECD countries have met or are close to meeting only a quarter of the targets for which performance can be gauged, according to a new OECD report.
Virtually all OECD countries are already securing basic economic needs and implementing the policy tools and frameworks mentioned in the 2030 Agenda. But progress towards 21 targets on issues such as ensuring no one is left behind, restoring trust in institutions and limiting pressures on the natural environment are still way off track.
The Short and Winding Road to 2030: Measuring Distance to the SDG Targets says that while OECD countries have eradicated extreme poverty, most of them need to do more to reduce deprivation more broadly. Women, young adults and migrants face greater challenges than the rest of the population, and despite some progress, women’s rights and opportunities are still limited in both private and public spheres. In addition, unhealthy behaviours such as malnutrition and tobacco consumption, which appear to be more common among low socio-economic groups, and disparities in education from early years of life, tend to exacerbate inequalities.
Adopted by world leaders in 2015, the 2030 Agenda calls on all countries to build a better and more sustainable future by focussing on a number of targets grouped under the 17 Sustainable Development Goals. The SDGs themselves are clustered into five broad themes – People, Planet, Prosperity, Peace and Partnerships. For instance, SDGs under the ‘People’ theme aim at eradicating poverty (Goal 1) and hunger (Goal 2), at ensuring that all human beings can fulfil their potential, in particular in terms of health (Goal 3) and education (Goal 4), and without being penalised because of their gender (Goal 5).
The report uses UN and OECD data to assess the performance of OECD countries by looking at their current achievements, whether they have been moving towards or away from the targets, and how likely they are to meet their commitments by 2030. The report also considers how progress may be affected by the COVID-19 pandemic.
The report finds that while most OECD countries are close to eradicating  severe hunger, few of them will be able to fully prevent social exclusion or reduce malnutrition by 2030. On average, around one in eight OECD residents are considered as income poor, and unhealthy diets and sedentary lifestyles have led to rising obesity rates in all OECD countries – with an average of 60% of adults being overweight or obese.
Distance to target and trends over time in OECD countries, by SDG target, Goal 1 (eradicating poverty)

Source: All data is taken and adapted from SDG Global Database, https://unstats.un.org/sdgs/unsdg and OECD.Stat, https://stats.oecd.org/
The report also confirms that environmental pressures are rising. Progress was made on many fronts including energy intensity, water use and municipal waste management. While some of these positive developments are attributable to policy action and technical progress, the displacement of resource- and pollution-intensive production abroad also explains some of this progress. The use of material resources to support economic growth remains high, and many valuable materials continue to be disposed of as waste.
On the climate front, despite progress achieved in decoupling greenhouse gas emissions from population and GDP growth, total emissions are hardly decreasing, and all OECD countries are continuing to support the production and consumption of fossil fuels. As for biodiversity, despite some encouraging developments in protecting ecosystems, threats to terrestrial and marine biodiversity have been rising. Without more determined action, biodiversity loss will continue.
The report nevertheless identifies a number of other areas where the distance that still remains to meet SDG targets is negligible or small. OECD countries are able to provide everyone with access to some basic amenities, including sanitation, fresh water and energy. OECD countries have also been able to reduce maternal and infant mortality, to afford access to early childhood education, to provide modern education facilities and a legal identity to all citizens.
Presenting the report today, OECD Deputy Secretary-General Jeff Schlagenhauf said: “The SDGs are our promise and our responsibility to future generations. While this report shows that some targets are far from being achieved, the momentum for international action is strong. Opportunities to advance on the agenda are many and should not be wasted given the short time left. To seize these opportunities, we need a rigorous understanding of where countries stand, how quickly they are advancing towards their goals and what should be the priorities for action.”
The 2030 Agenda is global by essence and calls on developed countries to implement fully their official development assistance commitments beyond their borders. However, total official assistance provided by the donor countries of the Development Assistance Committee remains less than half of the intended target of 0.7 per cent of gross national income.
The report also aims at setting out the future statistical agenda on SDGs. Despite  progress on measurement, there are still many blind spots. Although data are currently available for almost 70% of the objectives in  the Planet category, for instance, only one in three of the targets can be monitored effectively due to limited availability of robust time-series.
The OECD says that the recovery packages deployed by most OECD governments in response to the COVID-19 crisis provide an opportunity to quicken the pace of progress towards meeting the SDGs.
The full report is available at https://oe.cd/measuring-sdgs-2022. 
Contacts:

Martine Zaïda | martine.zaida@oecd.org

The OECD Media Office | news.contact@oecd.org

Working with over 100 countries, the OECD is a global policy forum that promotes policies to preserve individual liberty and improve the economic and social well-being of people around the world.
Compliments of the OECD.
The post OECD countries advancing slowly on sustainable development targets by 2030 first appeared on European American Chamber of Commerce New York [EACCNY] | Your Partner for Transatlantic Business Resources.

02 May
EACC

ECB Speech | No predetermined path for rate rises

Interview with El Correo (Grupo Vocento) | Interview with Luis de Guindos, Vice-President of the ECB, conducted by Adolfo Lorente and Manu Álvarez on 26 April |
Will interest rates already rise in July?
It will depend on the data and the new macroeconomic projections in June. In April the ECB’s Governing Council decided that asset purchases will end in the third quarter. In my opinion, there’s no reason why this shouldn’t happen in July. Rates will rise after that. Exactly how long after has not been decided. It could be months, weeks or days. July is possible, but that’s not to say it’s likely.
We haven’t even had the first rate hike yet, but the market is already pricing in two rate hikes this year, and there’s even talk of a third. Are you under even more pressure to act?
We are driven by data, not by markets. Markets can sometimes be wrong. Within the Governing Council we haven’t discussed any predetermined path for rate rises.
Some economists are criticising you for acting excessively slowly.
These comments stem from the comparison with the United States, but the situation in Europe is different. There are two main factors that will determine interest rates. On the one hand, you have the evolution of second-round effects – in other words, wage increases that are incompatible with price stability. And on the other hand, you have inflation expectations, which we should monitor to make sure they don’t rise above our target of 2% over the medium term. So far, we haven’t seen wage increases that would put this target at risk, but we have to be very attentive because this is a delayed indicator.
Do you see any risk of a recession, even if just out of the corner of your eye?
The invasion of Ukraine will increase inflationary pressures and reduce economic growth. The fact that the prices of raw materials and energy have increased in the way they have implies, in practice, a tax on workers and companies, because these imported production factors are becoming more expensive. And, ultimately, this implies a decline in living standards. On the risk of recession – in June we will have new projections. What we are already seeing is a significant weakening of growth. Even so, in 2022 growth will be positive. And if we stick to the technical definition of a recession – two consecutive quarters of negative growth – we currently don’t see it.
And one quarter?
Certainly not two.
But in the scenario in which Germany, under pressure from its partners, decides to cut off its supply of Russian gas, the impact on its economy could act as a very significant drag on the entire euro area.
One can always imagine worse scenarios. In the March projections with three scenarios: one baseline, one adverse and one that we call severe, we did not see a recession, not even in the severe scenario. Let´s wait for the June projections.
With the withdrawal of stimulus, are there countries that may experience problems related to funding or their budget deficit?
Nominal rates for public debt have increased all over the world, but risk premia are still relatively stable. The risk of fragmentation has not materialised, but it’s something we are monitoring. We currently don’t see any tensions in this respect, and the situation is in no way comparable to 2011 and 2012.
Is Spain – the fourth largest economy in the euro area – ready to cope with a rate increase?
The Spanish economy has two strengths. First, the financial system is healthy, following the restructuring of the banking sector. This allowed banks to continue lending to firms and households under favourable conditions, even during the pandemic. And second, the Spanish economy is competitive, as the balance of payments of its current account remains in surplus. This has been the case since 2013, even though it was previously inconceivable.
And what are its weaknesses?
Again, there are two. The first is the fiscal situation. The debt-to-GDP ratio is close to 120% and the structural deficit is nearing 5%. In addition, both headline and underlying inflation in Spain are back above the European average. And as Banco de España has warned, corporate margins are starting to be significantly affected, as the profitability of Spanish firms is falling because of the rising costs of energy and commodities. This factor has to be carefully considered.
Would you advise the Spanish Government to start taking seriously the need for increased budgetary stability?
My recommendation – and this is not only for Spain, but for all countries with a weaker fiscal profile – would be to present credible budget plans to Brussels. Plans that set out a prudent and sensible process of fiscal consolidation. With these levels of inflation, interest rates are not going to be as low as they have been in recent years, and governments need to prepare for this. The key, also from the markets’ perspective, is to have credible proposals.
There has been a lot of talk about the Spanish economy’s extreme dependence on the ECB. Beyond the literature, what is the true impact, in figures, of all the measures adopted?
There is one figure that is particularly indicative. During the pandemic, in 2020 and 2021, the ECB bought €120 billion of Spanish debt in the secondary market each year. This is equivalent to Spain’s total net issuance. European support, including via the Next Generation EU fund adopted by the European Council, has been crucial, especially for an economy like Spain’s. It was the Spanish economy that suffered the largest decline in 2020 and, despite strong growth of 5.1% in 2021, it was below the European average. And unlike the rest of Europe, income levels have not recovered to pre-pandemic levels.
Is it sustainable for a government to link pension increases to inflation by law?
Pension indexation is a social policy decision and it is not my place to question it. It’s a respectable decision, but it is also clear that it will have consequences for the sustainability of the system. So, such a decision needs to be accompanied by measures that ensure the system remains sustainable over the medium term.
And what about public sector wages?
I must stress that as Vice-President of the ECB, I cannot enter into the discussion of what a government or party says or does. In general, it’s necessary to be prudent when taking decisions. Sometimes the credibility conveyed by the measures is as important as the measures themselves.
As Banco de España defends, is this the time for wage restraint and for employers and unions to reach wage agreements?
The European and Spanish economies will face a complex situation, with high inflation, a downward trend in growth and smaller company margins. This will have an impact on investment and employment. In such a situation, where difficult decisions will have to be taken, it will be important to have the greatest possible social and political support for economic policy.
And do you think Spain is prepared politically to reach such agreements?
I have made a general remark. I can’t assess the situation of any specific country.
Another issue on the table – not only in Spain – is taxes. Is there any scope for reducing taxes in this crisis environment?
Not all countries are in the same situation. The public sector can play a role in cushioning the impact of the war on businesses and households. But this can also increase the budget deficit.
Some sectors criticise this theory because reducing taxes would further fuel inflationary pressures.
We are talking about temporary and selective measures that should be targeted at the most vulnerable sectors. If the measures are well designed, fiscal policy can help to lessen the impact of an external supply shock like the current one preventing those negative effects for inflation over the medium term. The pandemic affected lots of companies that are now being hit by a second shock. As I said, Spanish companies are seeing significant cuts to their margins.
At a time of uncertainty, the health of the financial sector is key. Do you think there are countries that still need to make an effort to recapitalise their banks?
Broadly speaking and judging by the capital and liquidity levels of European banks, we are in a much better situation than in the past. The pandemic crisis caused a great deal of concern about the potential impact on the financial system, but it has proven to be resilient.
So, you are completely calm when it comes to this matter…
There are still risks. Nominal interest rates are rising in the markets, which enables the banking sector to achieve higher profit margins. But it may also have an impact on non-performing loans. If they increase, bank profitability drops. And for the banks, customer creditworthiness is key.
Looking back, has progress in the Spanish banking sector been good enough? Would you have signed off on the current state of play when you were Minister for the Economy?
In 2011 and 2012 bank risk was a heavy burden that was dragging Spain into a very deep recession. There was a need to request the bank bailout, reform the old savings banks and create [the asset management company] Sareb, as there were more than €110 billion of irrecoverable loans to the real estate sector. In 2017 Banco Popular went into a liquidity crisis, which ended in the bank’s resolution. At that time, despite the size of the entity, there was no longer a contagion effect in the financial sector. So, after years of reforms, the situation in the banking sector was already very different. And today it is one of the strengths of the Spanish economy.
In the case of Banco Popular, would it have been possible to resolve it in just a few hours in 2011?
It would have been completely impossible.
Are the calls for mergers between financial institutions still on the table?
Yes. The European banking sector has a structural problem of low profitability, which it needs to address. Profitability has improved in recent months, but mainly due to the reduction of provisions. Now that we’re in an environment of lower economic growth, there will be a need to analyse whether that trend is sustainable over time or whether other measures are needed.
Do the ECB’s recommendations target domestic or cross-border mergers?
With 19 countries sharing a currency, in a single market and with a single banking supervisor, cross-border mergers would be ideal. Cross-border mergers are not straightforward because there are different regulatory systems and each country has its own unique features. But in a single European system, we should strive to have truly European banks. That being said, domestic mergers also serve their purpose as they can help to reduce excess capacity in some countries, keep costs down and increase bank profitability.
Kutxabank is continuing with its independence strategy.
I can’t comment on individual banks. As is widely known, Kutxabank is an entity with high levels of capital and liquidity which can play an important role in the banking sector in Spain and Europe.
This interview was published in El Correo, El Diario Vasco, El Diario Montañés, La Verdad, Ideal, Hoy, Sur, La Rioja, El Norte de Castilla, El Comercio, Las Provincias and La Voz de Cádiz (Spain).
Compliments of the European Central Bank.
The post ECB Speech | No predetermined path for rate rises first appeared on European American Chamber of Commerce New York [EACCNY] | Your Partner for Transatlantic Business Resources.

29 Apr
EACC

ECB | Monetary developments in the euro area: March 2022

Annual growth rate of broad monetary aggregate M3 stood at 6.3% in March 2022, after 6.4% in February 2022 (revised from 6.3%)
Annual growth rate of narrower monetary aggregate M1, comprising currency in circulation and overnight deposits, decreased to 8.8% in March from 9.1% in February
Annual growth rate of adjusted loans to households stood at 4.5% in March, compared with 4.4% in February
Annual growth rate of adjusted loans to non-financial corporations decreased to 4.2% in March from 4.5% in February

Components of the broad monetary aggregate M3
The annual growth rate of the broad monetary aggregate M3 stood at 6.3% in March 2022, after 6.4% in February, averaging 6.4% in the three months up to March. The components of M3 showed the following developments. The annual growth rate of the narrower aggregate M1, which comprises currency in circulation and overnight deposits, decreased to 8.8% in March from 9.1% in February. The annual growth rate of short-term deposits other than overnight deposits (M2-M1) stood at -0.3% in March, unchanged from the previous month. The annual growth rate of marketable instruments (M3-M2) increased to 1.6% in March from -0.4% in February.

Chart 1
Monetary aggregates
(annual growth rates)

Data for monetary aggregates
Looking at the components’ contributions to the annual growth rate of M3, the narrower aggregate M1 contributed 6.3 percentage points (down from 6.5 percentage points in February), short-term deposits other than overnight deposits (M2-M1) contributed -0.1 percentage point (as in the previous month) and marketable instruments (M3-M2) contributed 0.1 percentage point (up from 0.0 percentage point).
From the perspective of the holding sectors of deposits in M3, the annual growth rate of deposits placed by households decreased to 4.6% in March from 5.1% in February, while the annual growth rate of deposits placed by non-financial corporations decreased to 6.8% in March from 7.9% in February. Finally, the annual growth rate of deposits placed by non-monetary financial corporations (excluding insurance corporations and pension funds) decreased to 13.5% in March from 14.6% in February.
Counterparts of the broad monetary aggregate M3
As a reflection of changes in the items on the monetary financial institution (MFI) consolidated balance sheet other than M3 (counterparts of M3), the annual growth rate of M3 in March 2022 can be broken down as follows: credit to general government contributed 4.1 percentage points (down from 4.4 percentage points in February), credit to the private sector contributed 4.1 percentage points (down from 4.2 percentage points), longer-term financial liabilities contributed 0.3 percentage point (up from 0.2 percentage point), net external assets contributed -1.2 percentage points (down from -1.1 percentage points), and the remaining counterparts of M3 contributed -0.9 percentage point (up from -1.3 percentage points).

Chart 2
Contribution of the M3 counterparts to the annual growth rate of M3
(percentage points)

Data for contribution of the M3 counterparts to the annual growth rate of M3
Credit to euro area residents
As regards the dynamics of credit, the annual growth rate of total credit to euro area residents decreased to 5.9% in March 2022 from 6.2% in the previous month. The annual growth rate of credit to general government decreased to 9.9% in March from 10.7% in February, while the annual growth rate of credit to the private sector stood at 4.2% in March, compared with 4.3% in February.
The annual growth rate of adjusted loans to the private sector (i.e. adjusted for loan sales, securitisation and notional cash pooling) stood at 4.7% in March, compared with 4.8% in February. Among the borrowing sectors, the annual growth rate of adjusted loans to households stood at 4.5% in March, compared with 4.4% in February, while the annual growth rate of adjusted loans to non-financial corporations decreased to 4.2% in March from 4.5% in February.

Chart 3
Adjusted loans to the private sector
(annual growth rates)

Data for adjusted loans to the private sector
Notes:

New reporting requirements under Regulation (EU) 2021/379 of the European Central Bank of 22 January 2021 on the balance sheet items of credit institutions and of the monetary financial institutions sector (ECB/2021/2) came into force with effect from the January 2022 reference period. The implementation of the new Regulation, together with other changes to the statistical reporting framework and practices in euro area countries, may result in revisions to preliminary data in subsequent press releases.

Data in this press release are adjusted for seasonal and end-of-month calendar effects, unless stated otherwise.
“Private sector” refers to euro area non-MFIs excluding general government.
Hyperlinks in the main body of the press release and in annex tables lead to data that may change with subsequent releases as a result of revisions. Figures shown in annex tables are a snapshot of the data as at the time of the current release.

Compliments of the European Central Bank.
The post ECB | Monetary developments in the euro area: March 2022 first appeared on European American Chamber of Commerce New York [EACCNY] | Your Partner for Transatlantic Business Resources.

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28 Apr
EACC

TBIC | Transatlantic Foreign Direct Investment Analysis and Trends, 2nd Quarter 2022

The Transatlantic Business & Investment Council (TBIC) is the official European representative for selected counties, cities and corporations from over 30 U.S. States. It is our mission to promote transatlantic trade and investment. To that end, TBIC bridges the gap between U.S. Economic Development Organizations (EDOs) and European investors looking to enter or expand in the U.S. market.
This latest issue of our quarterly features an analysis of the newly published preliminary (p) data for Q4 2021 and partially revised data (r) for Q3 2021, as recently released by the U.S. Bureau of Economic Analysis (BEA). With $124.8 billion worth of investment, the fourth quarter of 2021 finished slightly below Q3 2021, which witnessed the strongest inflows of FDI to the United States since 2018.
Overall FDI inflows to the U.S. in 2021 – $382 billion – more than doubled compared to the total volume of FDI flows recorded in 2020 –  $164.4 billion. The 2021 FDI inflows were also 1.4 times higher than in 2019.
The strong rebound for the machinery sector FDI in Q3 2021 abated in Q4 according to the preliminary numbers, as did investment in the food sector. With that said, Q4 2021 saw an estimated $4.1 billion quarterly investment flow, making it the second strongest quarter in over two years for this sector.
This edition also includes a time series focusing on French foreign direct investments to the United States. In addition to the recent French presidential elections between far-right politician Marie Le Pen and center-left incumbent President Emmanuel Macron, France will also host the upcoming U.S.-E.U. Trade and Technology Council meeting on May 15 and 16.
The U.S. is the second largest source of FDI in France while the country is the fifth largest source of FDI in the United States. In the lead up to the election, Le Pen continually supported economic protectionism that would likely have hindered the trade relations between the two countries. As an important source of FDI for the U.S., President Macron’s success in the 2022 presidential elections is an encouraging sign for the continued partnership and mutually beneficial, bilateral trade relations between the two countries.
In this analysis, the TBIC corroborates relevant country data with its own experience of working at the frontier of transatlantic investments: the TBIC regularly visits key markets in Europe that have become drivers of FDI in the United States as part of delegation trips offered exclusively to our members. These trips feature meetings with decision-makers from companies looking to invest in the United States as well as key multipliers from diplomatic missions and industry associations. After more than a year of online events, the TBIC switched back to the in-person format in September 2021. Regulations across both the U.S. and E.U. have been lifted and we are thrilled to once again be able to welcome our U.S. members to Europe and facilitate meaningful and fruitful connections with prospective European investors.
In addition to our FDI analysis, this edition features our latest spotlight article both on how the aviation and aerospace industry faired through the pandemic, but additionally provides an in-depth outlook on developments and trends we can expect in the months and years ahead.
Find a PDF version of this document here.
Foreign Direct Investment in the United States: Key Figures

In the recently published data of the U.S. Bureau of Economic Analysis (BEA), the quarterly FDI inflows for the third quarter of 2021 were revised upward from $118.1 to $125.2 billion.
Meanwhile, the preliminary data for the fourth quarter of 2021 projects a volume of inwards investment of $124.8 billion, the second highest quarterly volume since the outbreak of the COVID-19 pandemic. On a year-to-year basis, FDI inflows in Q4 2021 were more than 60 percent higher than in Q4 2020.
According to UNCTAD’s January 2022 Investment Trends Monitor, FDI inflows to the United States increased by 114 percent in 2021. UNCTAD furthermore assessed there was a boom in cross-border M&As, whose value almost tripled to $285 billion in the U.S. in 2021. BEA data shows FDI inflows to the U.S. in 2021 – $382 billion – more than doubled compared to the total volume of FDI flows recorded in 2020 –  $164.4 billion. The 2021 FDI inflows were also 1.4 times higher than in 2019.

Source: Bureau of Economic Analysis (BEA), U.S. International Transactions, Fourth Quarter 2021, March 2022
U.S. FDI Inflows by Key Industry Sector

The newly released BEA preliminary data for Q4 shows a downward trend in net FDI flows in the food and machinery sectors compared to Q3. In Q4, investment flows in the food sector decreased by $0.8 to 2 billion while investment flows in the machinery sector declined by $1.3 billion. Transportation equipment investments bucked this trend and increased by an estimated $0.6 billion.
Investments in the transportation equipment sector outperformed those in the machinery and food sectors. Including Q4’s preliminary data, transport equipment sector investments totaled $12.7 billion in 2021 compared to $10.9 billion in the machinery and $6.3 billion in the food sector.
The strong rebound for the machinery sector FDI in Q3 2021 abated in Q4. However, with an estimated $4.1 billion quarterly investment flow, Q4 remained the second strongest quarter in over two years for this sector.
Similarly, investments in the food industry also contracted during the fourth quarter of 2021, with a financial flow estimated at $2 billion. Accordingly, Q4 2021 is expected to be the third strongest quarter for FDI to the food sector since the onset of the pandemic.

Source: Bureau of Economic Analysis (BEA), Foreign Direct Investment in the United States: Country and Industry Detail for Financial Transactions, March 2022.
U.S. FDI Inflows by Key European Source Countries

Quarterly inflows from Germany, the United Kingdom and Switzerland for Q3 2021 were revised by the BEA. German and British FDI inflows were corrected upwards from $10.4 to 11.7 billion for the former and from $ 5.2 to 10.7 billion for the latter. Meanwhile, Swiss FDI was readjusted downwards, from $3.2 to minus 27 million.
German FDI is expected to reach $7.4 billion in the fourth quarter of 2021, the same value as in Q4 2020. FDI inflows from Europe’s largest economy have thus proven relatively stable over the course of 2021 as compared to the other two countries under analysis.
FDI from the United Kingdom recovered somewhat after it dropped to $2 billion in Q2 2021 and after two quarters marked by exceptionally high investments. In Q3 2021, FDI flows from the United Kingdom’s rose to $10.7 billion, while in Q4 FDI flows are estimated to total $5.3 billion. Meanwhile, Swiss FDI increased from minus $27 million to 3.6 billion between the third and fourth quarter of 2021.
Taken together, the quarterly investment flows show the United Kingdom ranked first among the three countries with a total investment of 52.4 billion in 2021, which is to be expected given its outsized role in international finance. Germany ranked second with $50 billion in annual investment flows followed by Switzerland with $7.9 billion.

Source: Bureau of Economic Analysis (BEA), Foreign Direct Investment in the United States: Country and Industry Detail for Financial Transactions, March 2022.
Historical Series 2: French FDI Inflows to the U.S.

The graph below features our third time series, dedicated to the development of French foreign direct investments to the United States. FDI inflows from France to the U.S. continue to play an important role for the U.S. economy. In 2020, France was the fifth largest investor in the United States and the largest foreign investor in R&D in computer and electronic products. After a decline in 2018, French FDI inflows to the U.S. are again on an upward trajectory, particularly in Q3 and Q4 of last year. As of 2019, French FDI was supporting 765,100 jobs in the United States. One third of all French subsidiaries in the U.S. are in the manufacturing sector, offering employment to 227,600 Americans.
Many well-known French companies like oil and gas giant Total Groupe, luxury goods conglomerate Louis Vuitton Moet Hennesy, tire manufacturer Michelin, and airline manufacturer Airbus have a strong footprint in the U.S. In addition, French FDI is a major driver of innovation. France is the fourth largest country of ownership for patents granted by the U.S. Patent and Trademark Office according to the French Treasury in the United States.

Aware of the many opportunities that this fast-growing source of FDI has to offer, the TBIC regularly visits leading companies and business executives in Austria to assist them in their expansion to the U.S. market.

Source: Bureau of Economic Analysis (BEA), Foreign Direct Investment in the United States: Country and Industry Detail for Financial Transactions, March 2022.
TBIC Spotlight Article: Trends in the Aviation and Aerospace Sector
With the world slowly reopening after nearly two years, many are taking stock of all that has changed during that time. While all industries have certainly been altered by the pandemic, aviation and aerospace were particularly impacted as the global ebb and flow of people and goods came to a halt with the raising of borders and restrictions in 2020. In this edition of our newsletter, we wanted to give our members a retrospective look at some of the most important developments the industry, as well as offer an outlook on the bright future of aviation and aerospace technologies.
The pandemic undeniably required airlines to adjust their business models. According to a 2021 report by the Aerospace and Defense Industries Association of Europe, flights were reduced by almost 90% at the peak of the crisis. While this did have knock-on effects throughout the industry, the pandemic also revealed new opportunities. As lockdowns and quarantine restrictions pushed online shopping to new heights, coupled with severe delays at ports across the US, air freight cargo represented a way to help buoy airline companies as they weathered the pandemic restrictions. 2022 is expected to be a record breaker with air cargo revenue expected to reach $175 billion USD.
In addition to this, the longer-term nature of aerospace and defense contracts helped to buffer some of the impact of the pandemic. In a 2021 survey by McKinsey, 52% of European aerospace and defense respondents anticipated increases in investment for 2021 and beyond. In the United States, government contracts from the Pentagon, helped to further provide steady revenue streams for airlines.
Assistance from the government has been essential to helping keep aviation and aerospace manufacturing jobs afloat. In February 2022, the U.S. Department of Transportation announced that in its third round of Covid-19 relief funding, it was offering an additional $69 Million USD to aviation manufacturing and repair businesses. This brings the total amount of funding to nearly $673 million USD, helping support 31,000 jobs in 43 states.
This year, global aviation is at long last bouncing back.  A recent survey found that 47% of respondents anticipate an increase in sector as a whole in 2022. Intra-regional flights are already expected to reach near pre-pandemic levels this year, with inter-regional flights between North America, Asia, and Europe following suit in 2023.

Source: McKinsey analysis of global airline demand; PaxIS
The aviation and aerospace industry is not just returning to old ways, however. The sector, as many others, has been reshaped by the events of the last two years. Customers’ concerns and governmental regulations have pushed for sustainability and carbon-neutrality. The design of planes and propulsion systems are changing to reduce CO2emissions in the fight against climate change. In Europe, Destination 50 is the aviation industry’s path to net zero emissions. Similarly, at the end of last year, the Biden Administration and the Department of Transportation announced their own goal if achieving net zero emissions from the United States’ aviation industry by 2050.
Achieving these goals requires investment into new and novel technologies. In both Europe and the U.S., sustainable aviation fuels (SAFs) are the clear front-runner in the short- and medium-term to cut emissions in the industry. Earlier this year, Airbus announced their intent to develop the first zero-emission commercial airplane by 2035.
The future of aviation, however, will reconfigure how we conceptualize mobility. The advance air mobility (AAM) market is expected to reach between $300 billion to $500 billion USD by 2040 – the U.S. market alone is expected to reach $115 billion by 2035. This influx of investment not only represents new technologies, but also a diversification in who’s investing. Beyond venture capital, AAM has investments special purpose acquisition companies (SPACs), as well as established aviation and aerospace companies internally investing in R&D.
Aviation and aerospace may have taken a hit during the pandemic, but the outlook going forward is positive. With events like the ILA Airshow in Berlin and the Farnborough Airshow just outside London, these big-name, in-person events are companies and investors chance to highlight their return to the market and showcase the future of aviation and aerospace.
Author:

Matthias Beier, President & CEO, TBIC

Compliments of the Transatlantic Business & Investment Council (TBIC) – a partner of the EACCNY.
The post TBIC | Transatlantic Foreign Direct Investment Analysis and Trends, 2nd Quarter 2022 first appeared on European American Chamber of Commerce New York [EACCNY] | Your Partner for Transatlantic Business Resources.

28 Apr
EACC

COVID-19: EU Commission calls on Member States to step up preparedness for the next pandemic phase

The Commission is today proposing a set of actions to manage the current phase of the COVID-19 pandemic and prepare for the next one. By working together, the EU has so far saved hundreds of thousands of lives thanks to COVID-19 vaccines, kept its single market operational, minimised travel restrictions and mobilised manufacturing capacity of critical products when supply chains were disrupted. In the new phase of the pandemic, where preparedness and response need to be sustained, coordination will be, once more, essential. The Commission therefore calls on Member States to take actions before autumn to ensure vigilance and continued coordination of health preparedness and response.
Remaining vigilant while transitioning out of the acute COVID-19 phase
The current lower levels of COVID-19 infection offer the Member States the opportunity to strengthen their surveillance, healthcare systems, and overall pandemic preparedness. In particular, the Commission invites Member States to:

Step up vaccination and boosting, taking into account the simultaneous circulation of COVID-19 and seasonal influenza;
Set up integrated surveillance systems that are no longer based on the identification and reporting of all COVID-19 cases, but rather on obtaining reliable and representative estimates;
Continue targeted testing and sequencing of sufficient samples to accurately estimate variant circulation and detect new variants;
Invest in the recovery of healthcare systems and assess the wider health impacts of the pandemic, including on mental health and delays in treatments and care;
Apply EU coordinated rules to ensure free and safe travel, both within the EU and with international partners;
Support the development of the next generation of vaccines and therapeutics;
Intensify collaboration against mis- and disinformation on COVID-19 vaccines;
Continue to deploy global solidarity and improve global governance.

In addition, the Commission is announcing actions to ensure resilient supply chains throughout the pandemic, both for medical countermeasures and for critical products across all industrial ecosystems. It is also launching today a tender, under the EU FAB initiative, to reserve capacities for manufacturing mRNA, protein and vector-based vaccines. This will reserve newly created manufacturing capacity for use in future health emergencies. The tender is addressed to vaccine producers with facilities in the EU/EEA, who can send in their request to participate until 3 June 2022 16.00 CEST.
Medium and long term include the further enhancing of pandemic preparedness and strengthening response coordination between Member States, as well as at the global level, implementing the European Health Union proposals, tackling wider health impacts of the pandemic, including “long COVID” and the burden on mental health, and speeding up digitalisation in health.
Members of the College said:
The President of the European Commission, Ursula von der Leyen, said: “We are entering a new phase of the pandemic, as we move from emergency mode to a more sustainable management of COVID-19. Yet, we must remain vigilant. Infection numbers are still high in the EU and many people are still dying from COVID-19 worldwide. Moreover, new variants can emerge and spread fast. But we know the way forward. We need to further step-up vaccination and boosting, and targeted testing – and we need to continue to coordinate our responses closely in the EU.”
Vice-President for Promoting our European Way of Life, Margaritis Schinas, said: «The COVID-19 pandemic is not over and the virus is here to stay. While the health situation is improving, we must prepare for different scenarios, and do it in a coordinated way. New variants are not a question of if but rather a question of when. Improvisation and fragmentation are not an option. Vigilance and preparedness remain as essential as ever and we must continue our work without respite. For these reasons, we are taking actions at national and EU level building on the successful EU-wide coordination for health preparedness and response. We shift from firefighters to architects, of a Health Union that protects public health while keeping society and economy open and resilient.” 
Commissioner for Internal Market, Thierry Breton, said: “The COVID-19 pandemic has demonstrated the importance of readily available vaccine production capacity in times of crisis. Following an unprecedented ramp-up, the EU reached a production capacity equivalent to 3-4 billion vaccines per year. EU FAB will allow us to preserve some of this capacity and keep it operational for future health crises. This is a cornerstone of the industrial dimension of our health emergency preparedness.”
Commissioner for Health and Food Safety, Stella Kyriakides, said: “Vaccination, our strong coordinated EU approach and natural immunity provides a much welcome window of opportunity to move from emergency mode to a more sustainable management of COVID-19. Infection numbers are still high in the EU, but the pressure on the healthcare sector has been reduced and our societies and economies have reopened again. Our citizens can finally enjoy this period with much fewer restrictions on daily life, after two and half extraordinary and difficult years. It is however crucial that Member States maintain a high level of vigilance and preparedness for new outbreaks and variants– the pandemic is not yet over. We need to do more to vaccinate globally, now that vaccine supply is no longer a challenge. How COVID-19 continues to impact our lives in the coming years will be heavily dependent on the decisions we take today, in the EU and globally.”
Background
While fluctuating case numbers are observed across Europe, increases are not leading to severe disease or death as often as before thanks to widespread vaccination. The now dominant Omicron variant is less severe than previous variants. However, infections are still in the millions worldwide.   Many people are in lockdowns in some parts of the world. Many are still suffering or dying from COVID-19. Waning immunity against infection, and possible winter seasonality also increase the risk that new variants of SARS-CoV-2 – the virus that causes COVID-19 – will emerge and spread.
While Member States are implementing new approaches to manage the ongoing pandemic, fragmented preparedness and response strategies risk undermining the benefits that EU-wide coordination of health security measures has brought so far.
This Communication therefore puts forward an approach for the management of this new phase of the pandemic, building on the successful EU-wide coordination for health preparedness and response.
The “EU FAB” initiative was announced in February 2021 to set up ever warm vaccine production facilities and ensure that current EU/EEA manufacturing capacities for mRNA, protein and vector-based vaccine types are maintained for future public health emergencies. To establish EU FAB, a tender procedure will be published in Tender Electronic Daily, Supplement to the Official Journal.
Compliments of the European Commission.
The post COVID-19: EU Commission calls on Member States to step up preparedness for the next pandemic phase first appeared on European American Chamber of Commerce New York [EACCNY] | Your Partner for Transatlantic Business Resources.

27 Apr
EACC

Legal migration: Attracting skills and talent to the EU

The Commission is today proposing an ambitious and sustainable legal migration policy. As part of the comprehensive approach to migration set out in the Pact on Migration and Asylum, the Commission is proposing legal, operational and policy initiatives that will benefit the EU’s economy, strengthen cooperation with non-EU countries and improve overall migration management in the long term. The set of proposals also includes specific actions to facilitate integration of those fleeing Russia’s invasion of Ukraine into the EU’s labour market.
Vice-President for Promoting our European Way of Life, Margaritis Schinas, said: “Whilst our Member States are busy managing the arrival of over 5 million people from Ukraine, this does not preclude the need to lay the foundations of a sustainable and common approach to labour migration to address EU skills needs in the long term. With today’s initiatives we recognise that legal migration has a positive impact all round: it gives those who want to migrate an opportunity to improve their circumstances while providing more skilled workers for host countries, who in turn boost the economy for all.”
Commissioner for Home Affairs, Ylva Johansson, said: “Annually, 2 to 3 million nationals from non-EU countries come to the EU legally, in contrast to 125,000 to 200,000 irregular arrivals. Legal migration is essential to our economic recovery, the digital and green transition and to creating safe channels to Europe, while reducing irregular migration. With today’s package, we are simplifying the application process for living and working in the EU and improving rights for residents and their family members. I am confident we are putting in place a solid way forward to attract new talent into the EU for today and tomorrow.”
An enhanced legislative framework
To provide a more effective framework for legal pathways to the EU, the Commission is proposing to revise the Single Permit Directive and the Long-Term Residents Directive.

A streamlined procedure for the single permit for combined work and residence will make the process quicker and easier for applicants and employers. It will allow applicants to lodge applications from both non-EU countries and EU Member States and will also enhance safeguards for equal treatment and protection from labour exploitation.

The revision of the Long-term Residents Directive will make it easier to acquire the EU long-term residence status by simplifying the admission conditions, for instance by allowing the cumulation of residence periods in different Member States. In addition, the revision will enhance the rights of long-term residents and their family members, including improvements to family reunification and facilitated intra-EU mobility.

Better matching skills and labour market needs
The Commission is proposing to step-up operational cooperation at EU level between Member States as well as with partner countries. Work is already advanced with a number of key initiatives to match labour market and skills needs of Member States and partner countries. Following the launch of Talent Partnerships in June 2021, the Commission is now proposing a number of steps to operationalise them with the aim of agreeing on the first Talent Partnerships by the end of 2022.
The Commission is proposing to establish the first EU-wide platform and matching tool, an EU Talent Pool, to make the EU more attractive for non-EU nationals looking for opportunities and help employers find the talent they need. To address the urgent need to facilitate access to the labour market for new arrivals from Ukraine, the Commission is proposing a pilot initiative that should be up and running by summer 2022.
A forward-looking legal migration policy
Finally, the Commission is exploring further potential avenues for legal migration to the EU in the medium to longer term. The Commission sees the potential for focusing on forward-looking policies around three areas of action: care, youth and innovation. The aim will be to:

Attract skills and talent in sectors where there are labour shortages and needs, for example in the long-term care sector;
Create opportunities for young people to explore new countries, to benefit from work and travel; and
Promote innovation entrepreneurship within the EU and invest in our European tech sovereignty.

Background
Whilst Member States alone decide on the volumes of legal migrants they wish to admit, the EU can support them with practical and operational tools. Over the past two decades, the EU has developed a legal framework largely harmonising Member States’ conditions of entry and residence for non-EU nationals. An evaluation of this legal framework in 2019 underlined that more could be done to increase the impact of the EU legal migration framework on the EU’s demographic and migration challenges. After a wide public consultation and following two resolutions from the European Parliament in 2021, the Commission was asked to present a set of proposals to facilitate legal migration to the EU with the objective of reducing bureaucracy, strengthening harmonisation, promoting fundamental rights and equal treatment, and preventing labour exploitation.
Compliments of the European Commission.
The post Legal migration: Attracting skills and talent to the EU first appeared on European American Chamber of Commerce New York [EACCNY] | Your Partner for Transatlantic Business Resources.

27 Apr
EACC

Visa Digitalisation: Visa travel to the EU becomes easier

Today, the Commission is proposing the digitalisation of the Schengen visa process, replacing the visa sticker, and introducing the possibility to submit visa applications online through the European online visa platform. The New Pact on Migration and Asylum set the objective to fully digitalise visa procedures by 2025. It is an opportunity to effectively improve the visa application process by reducing the costs and the burden on Member States as well as the applicants, while also improving the security of the Schengen area.
Vice-President for Promoting our European Way of Life, Margaritis Schinas, said: “Today we are bringing the EU’s visa policy into the digital age. With some Member States already switching to digital, it is vital the Schengen area now moves forward as one. We are proposing a fully digitalised visa application to help both travellers and Member States ensure smother and more secure application process.”
Commissioner for Home Affairs, Ylva Johansson said: “A modern visa process is crucial to make travel to the EU easier for tourism and business. Half of those coming to the EU with a Schengen visa consider the visa application burdensome, one-third have to travel long distance to ask for a visa.  It is high time that the EU provides a quick, safe and web-based EU visa application platform for the citizens of the 102 third countries that require short term visa to travel to the EU.”
In today’s digital age, applying for a visa is still a lengthy and heavily paper-based process with applicants having to travel to submit and collect their passport with a visa afterwards, leading to accumulating costs both for travellers and Member States. Several Member States have taken steps to move visa applications online but there are differences in the extent to which they have done this. Only a few offer the possibility of paying online. These procedures also proved problematic during the COVID-19 pandemic where applicants were no longer able to freely go to consulates to apply for visas.
Harmonising and unifying visa application procedures within the Schengen area will help to avoid so called ‘visa shopping’ by applicants who may be tempted to lodge an application with a Schengen country that offers faster visa application processing than with a country that is actually their destination. The digitalisation of the visa process will also reduce security risks posed by the physical visa stickers, which could still be prone to falsification, fraud and theft. Today’s proposal is also in line with the general EU approach to encourage the modernisation and digitisation of public services.
Through digitalisation, applying for a Schengen visa will become easier and the visa itself will be more secure:

Visa applicants will be able to apply for a visa online, including paying the visa fee through a single EU platform, regardless of the Schengen country they want to visit;
The platform will automatically determine which Schengen country is responsible for examining an application, in particular when the applicant intends to visit several Schengen countries;
The platform will provide applicants with up-to-date information on Schengen short-stay visas, as well as all necessary information regarding the requirements and procedures (such as supporting documents, visa fee or the need for an appointment to collect biometric identifiers);
Appearing in person at the consulate would only be mandatory for first time applicants for the collection of biometric identifiers, for applicants whose biometric data are no longer valid or those with a new travel document;
The visa will include state-of-the-art security features, which will be more secure than the current visa sticker;
The new system will ensure that fundamental rights are always protected.

Background
The European Commission in 2018 proposed to amend the Visa Code by adopting visa policies to new challenges and equally stressed that digital visas are the way forward for the longer term. When revising the EU Visa Code in 2019, the European Parliament and the Council stated the aim of developing a common solution to allow Schengen visa applications to be lodged online, thereby making full use of the recent legal and technological developments. The COVID-19 pandemic, which led to the slowing down of Schengen visa operations worldwide, due to the difficulty of receiving visa applicants in consulates and visa application centres, prompted Member States to call upon the Commission to speed up work on digitalisation of visa procedures. The Pact on Migration and Asylum proposed by the Commission in September 2020 set the objective of making the visa procedure fully digitalised by 2025, with the introduction of a digital visa and the ability to submit visa applications online.
Next steps
The Commission proposal will now be discussed by the European Parliament and the Council. Member States will have then five years to switch to the common online visa platform. Based on the outcome of the negotiations between the co-legislators, the development of the platform could start in 2024 and become operational in 2026. Considering the five year transition period, all Member States could use the platform in 2031.
Compliments of the European Commission.
The post Visa Digitalisation: Visa travel to the EU becomes easier first appeared on European American Chamber of Commerce New York [EACCNY] | Your Partner for Transatlantic Business Resources.

26 Apr
EACC

FTC | What the pandemic has taught businesses about the collection of health information

As businesses, government agencies, and nonprofits reopen and employees return to in‑person offices, many pandemic safety measures are being modified. But if your company checked employees’ or customers’ vaccine status or collected other COVID-related information, have you considered what to do with the data now? Businesses that maintain that information or that developed apps or other products to facilitate its collection can pass along an important pointer to others planning to enter the burgeoning health app marketplace: Sensitive health information should come with a “Caution: Handle with Care” label.
Does your business develop vaccine verification apps?
Some vaccine verification “passport” apps store a digital copy of a person’s vaccination card. Others give the user a digital record to save in other apps or in a mobile wallet. In addition to a person’s vaccine status and possibly their test results, some apps collect other information to verify the person’s identity – for example, their name, date of birth, zip code, email address, and phone number. Some apps even tap into state or pharmacy vaccination records. Once verified, apps may keep the data on the phone, others may access data from the cloud, and still other may create a digital credential (often a QR code) that other apps can scan. If your company creates vaccine verification apps or if you’re developing other health-related apps, here are some key considerations.

Make accurate representations. Clearly explain how people’s information will be used and shared and then live up to those promises. If your company has deployed apps to read credentials at storefronts, ensure that those businesses understand your practices and the limits on how they may use the data you share.

Keep your app updated and your customers in the loop.  If your app needs to be updated to protect against new security vulnerabilities, follow through and do just that. And if a customer needs to update information on file to continue to use your app, communicate that clearly.

Review and update your privacy claims. Companies are creating apps that may evolve over time to share new or different information, particularly as they relate to public health developments. If your privacy claims don’t keep pace with changes to your data practices, consumers could be misled.

Minimize the data that is shared. When verifying a consumer’s vaccination status, it may be sufficient to communicate their status to another entity without sharing the person’s name, date of birth, email address, type of vaccine, etc. That principle applies equally to other health-related apps.

Protect the data you use for verification. If your app transmits sensitive data to verify a person’s status, use transit encryption. People using those apps (or other health apps) commonly rely on open Wi-Fi access points at coffee shops, airports, and other locations where it’s easy for info thieves to intercept data. If your app stores information on a phone, consider protecting or obscuring the data. This helps protect users in the event of viruses (the digital kind), malware, or a lost device.

Apply the lessons of the pandemic as you develop new health-related apps. Health apps are here to stay. But before your company rushes to market with a new product, train your team to prioritize best practices for secure development. If you Start with Security – and keep it Job #1 as you design, develop, and test – you can reduce the risk of rolling out a product with a fatal flaw. Another important resource: NIST’s Secure Software Development Framework (SSDF). Before your product goes live, verify that it works as advertised and that security measures are operational. One unskippable step: testing your product to ensure it’s not susceptible to common security vulnerabilities.

If you’re dealing with health data or kids’ data, understand applicable standards and regulations. Additional legal provisions may apply when health information and kids’ information is involved. Seek guidance on the Children’s Online Privacy Protection Act and the COPPA Rule, the Health Insurance Portability and Accountability Act (HIPAA), the Health Breach Notification Rule, and other relevant laws.

Does your business, nonprofit, or other group check people’s vaccine status?
If your company verifies the vaccine status of employees, customers, or others – whether by using an app, checking vaccine cards in person, getting scans of cards via email, etc. – here is some advice to keep in mind. These principles will remain relevant as new health apps enter the market.

Consider your objective.  When checking the status of customers or employees, are you doing that to ensure they’re vaccinated – or do you need more information to comply with legal obligations or possibly conduct contact tracing? Identifying your goal can be an important step to figuring out how to best achieve it.

When checking someone’s vaccination status, less is usually more. Consider whether you can simply confirm a person is vaccinated by viewing their vaccination card or a digital credential. If you don’t need more detailed information, don’t ask for it and don’t collect it in the first place. You don’t have to protect data you never had

Research the marketplace.  If you decide to use an app or other technology to assist in checking vaccination status or performing other health-related functions, exercise the utmost care in selecting service providers Investigate the companies, learn more about their software, and ask questions about their privacy and data security practices. What information will they be sharing with you? What information will an app be collecting from you, your customers, or your employees? Are the representations you make to others consistent with your service provider’s practices?

Provide a secure environment. If you do use technology to collect personal information, do you have a secure network through which the information is transmitted? And if you must maintain information, can you store it securely?

If you need to maintain information about a person’s vaccine status, consider how long you have to retain it. Once you no longer have a legitimate need for someone’s vaccine status or other health-related information, dispose of it securely.

Use the return to the in-person workplace – or the transition to a more permanent remote office – as a chance to take stock of the data you collect and retain. If you don’t have an ongoing need for a consumer’s date of birth to verify their status, don’t store it. Or if you use an app at a storefront to verify vaccination status of customers, think critically about how long data related to any one customer visit needs to be stored. But don’t stop there. Look beyond COVID-related circumstances to take a fresh look at your information collection and retention practices. Why collect or keep data you don’t need?

Author:

Megan Cox, Attorney, FTC Division of Privacy & Identity Protection

Compliments of the U.S. Federal Trade Commission.
The post FTC | What the pandemic has taught businesses about the collection of health information first appeared on European American Chamber of Commerce New York [EACCNY] | Your Partner for Transatlantic Business Resources.

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