ASSISTANT AG CALDWELL SPEAKS REGARDING FOREIGN BRIBERY REPORT

FROM:  U.S. JUSTICE DEPARTMENT 
Assistant Attorney General Leslie R. Caldwell Speaks at the Launch of the Organisation for Economic Co-operation and Development Foreign Bribery Report
ParisFrance ~ Tuesday, December 2, 2014

Thank you for that kind introduction, and thank you [Organisation for Economic Co-operation and Development (OECD)] Secretary-General [Angel] Gurria for inviting me to be part of this important day.  I want to commend you and your team for your work in compiling this significant Foreign Bribery Report, and I am honored to be here to celebrate its release.  Together, your team and the members of the Working Group on Bribery play a vital role in the global fight against corruption.

As you all know, this year marks the twentieth anniversary of the formation of the OECD Working Group on Bribery and the fifteenth anniversary of the entry into force of the OECD Anti-Bribery Convention.  Since their inception, the Working Group and the Convention have played a pivotal role in the worldwide battle against bribery.  By requiring countries to criminalize bribery of foreign officials in international business transactions and creating a peer-driven monitoring mechanism to ensure the robust enforcement of those laws, the Convention has helped to bring about an international approach to rooting out a global problem.

This international approach has dramatically advanced our collective efforts to uncover, punish, and deter foreign corruption.  We in the United States are committed to continuing to work together with our Working Group partners to hold to account individuals and companies who engage in corruption, regardless of where they operate or reside.

The fight against transnational bribery is incredibly important.  As we all know, bribery creates an unlevel playing field for honest businesses and threatens good governance, sustainable development and democratic processes.  Corruption also corrodes public trust in countries both rich and poor, and inflicts particular harm on emerging economies.

And corruption can create national security concerns.  It undermines the rule of law, facilitates organized crime, empowers authoritarian rulers and can threaten the stability of entire regions.  For these reasons, fighting foreign bribery is a significant part of the mission of the Criminal Division of the Department of Justice.

The United States began its fight against transnational bribery in the late 1970s when the U.S. Congress enacted our foreign bribery statute – the Foreign Corrupt Practices Act – which is often referred to as the FCPA.  Rigorous enforcement of the FCPA is one of the Department of Justice’s core priorities.

As the Assistant Attorney General for the Department of Justice’s Criminal Division, I have the privilege of leading 600 talented lawyers who prosecute crimes and promote the rule of law abroad.  We have a specific group of prosecutors in our FCPA Unit in the Fraud Section who are dedicated to investigating and prosecuting foreign bribery cases.

In the United States, we are vigorously employing proactive investigative tools to expose foreign bribery.  For instance, we conduct undercover operations with confidential informants and cooperating witnesses, using body wires, recordings, and surveillance.  We have had significant success in using these tools to gather evidence in corruption cases.

The department’s commitment to the fight against foreign bribery is demonstrated by our enforcement record.  Since 2009, we have convicted more than 50 individuals in FCPA and FCPA-related cases, and resolved criminal cases against more than 50 companies with penalties and forfeiture of approximately $3 billion.  And, during this same time, the U.S. Securities and Exchange Commission has resolved civil actions against more than 65 companies and 25 individuals.  Those cases result in total combined FCPA penalties and forfeiture by the DOJ and the SEC of approximately $4.5 billion.

These successes are the product of the skill, hard work, and determination of prosecutors in the Criminal Division, as well as our talented colleagues at the SEC.  In addition to working with SEC attorneys, our prosecutors work in tandem with our partners at the FBI and other law enforcement agencies, and, importantly, our foreign partners, including our partners in the Working Group on Bribery.

The Working Group has been, and continues to be, a critical vehicle through which we, as an international community, work together to strengthen enforcement efforts across the globe.  Through the Working Group, we are now more effectively able to share information, refer leads to one another, and coordinate investigations against individuals and entities that seek to obtain business overseas through bribery.  All countries, though, must contribute to this international effort if we are going to meaningfully deter and root out global corruption.

The Convention’s mutual legal assistance framework – and member states’ compliance with it – is key to effective international collaboration.  The framework enables member states to share with one another important evidence in a prompt and efficient way.  The Criminal Division’s Office of International Affairs coordinates all international evidence gathering and extradition of international fugitives.  We stand ready to assist other countries with your requests for evidence located in the United States.  We are encouraged by the responses we have received to many of our requests for mutual legal assistance, and we hope that the trend toward increased assistance and cooperation among member states will continue.

Bribery schemes often span the globe without regard to country borders.  A coordinated response by international law enforcement is necessary to ensure that all of the culpable individuals are held to account and to deter future would-be wrongdoers.

I’d like to discuss with you one case that shows the successful results of international cooperation.  Earlier this year, countries around the world worked together to bring to justice individuals and companies engaged in a scheme to bribe government officials in Indonesia.  Executives of Marubeni Corporation, a Japanese trading company; Alstom, a French energy company; corporate executives and others engaged in a multi-year scheme to pay millions of dollars to a high ranking member of the Indonesian Parliament and other Indonesian officials in exchange for assistance in securing a $118 million contract to provide power-related services in Indonesia.  Participants in the scheme met in the United States to discuss the bribery and paid bribes from the United States to a corrupt intermediary with U.S. bank accounts.

In the United States, we charged Marubeni Corporation for its participation in the scheme.  Marubeni pleaded guilty and paid an $88 million penalty.  We also charged four Alstom executives for their roles, three of whom have pleaded guilty and one of whom is awaiting trial.  We are actively continuing to investigate and anticipate additional law enforcement actions in the near future.

Meanwhile, the former Indonesian Parliament member was charged in Indonesia.  He was found guilty of accepting bribes and was sentenced to three years in prison.

These actions, and others that were brought against Alstom by authorities in Switzerland, the United Kingdom, and the World Bank for additional corrupt conduct, were made possible by international cooperation.  These coordinated global actions are a powerful demonstration of the successes we can achieve when we work together.

This is but one example of collaboration among Working Group and international partners in combating corruption that led to significant results.  There are many other examples, and many more are in the pipeline.

On behalf of the Department of Justice, I applaud the work of the Secretary-General, the Working Group on Bribery, and the Secretariat in launching this important Report and for the role they played in the successes detailed in the Report.  As the Report shows, together we have made significant progress in the battle against corruption – but our work is far from done.

I look forward to our continued collaboration and our continued success in rooting out and deterring the scourge that is foreign bribery.

Thank you.

U.S.-JAPAN JOINT STATEMENT ON ASIA-PACIFIC FUTURE

FROM:  THE WHITE HOUSE 

U.S.-Japan Joint Statement: The United States and Japan: Shaping the Future of the Asia-Pacific and Beyond

The relationship between the United States of America and Japan is founded on mutual trust, a common vision for a rules-based international order, a shared commitment to upholding democratic values and promoting open markets, and deep cultural and people-to-people ties. The U.S.-Japan Alliance is the cornerstone for regional peace and security as well as a platform for global cooperation.  The U.S. rebalance to the Asia-Pacific and Japan’s policy of “Proactive Contribution to Peace” based on the principle of international cooperation both contribute to the Alliance playing a leading role in ensuring a peaceful and prosperous Asia-Pacific.  

Close U.S.-Japan cooperation is essential in managing and responding to long-standing and emerging threats and challenges in Asia and around the world.  Recent events underscore the importance of coordinated action to uphold regional and global rules and norms.  At the March 25 Trilateral Summit in The Hague, the leaders of the United States, Japan, and the Republic of Korea urged North Korea to take concrete actions to meet its international obligations on nuclear and missile issues and to address, without delay, humanitarian concerns, including the abductions issue.  In concert with our G-7 partners, the United States and Japan have condemned Russia over its illegal attempt to annex Crimea and are consulting closely on further measures against Russia over its deplorable conduct, while strongly urging Russia to deescalate tensions in Ukraine.  Together, we are taking concrete steps to support Ukraine’s sovereignty, territorial integrity, and economic stability.  The United States and Japan are working collaboratively to resolve the Iranian nuclear issue, support Middle East peace efforts, contribute to Afghan reconstruction, and improve the situation in Syria, including through the disposal of its chemical stockpiles.  The United States and Japan recognize that China can play an important role in addressing all of these challenges, and both countries reaffirm their interest in building a productive and constructive relationship with China. 

The United States and Japan, as maritime nations with global trade networks that depend on open seas, underscore the importance of maintaining a maritime order based upon respect for international law, including the freedom of navigation and overflight.  The United States and Japan share strong concern over recent actions that have raised tensions in the East China Sea and South China Sea, such as the uncoordinated declaration of an Air Defense Identification Zone in the East China Sea.  Our two countries oppose any attempt to assert territorial or maritime claims through the use of intimidation, coercion or force.  The United States and Japan urge the establishment of confidence-building measures among governments and militaries in the region to address these tensions.  In the South China Sea, we call on countries concerned to clarify the basis of their maritime claims in accordance with international law.  We support efforts for the early establishment of an effective Code of Conduct as a way to reduce the risk of an unintended incident.  The United States and Japan fully support the use of diplomatic and legal means, including international arbitration, to settle maritime disputes in the South China Sea. 

Given the common security challenges our two countries face, the United States and Japan are strengthening and modernizing our security alliance as directed by the Security Consultative Committee, including through the revision of the Guidelines for U.S.-Japan Defense Cooperation.  The United States has deployed its most advanced military assets to Japan and provides all necessary capabilities to meet its commitments under the U.S.-Japan Treaty of Mutual Cooperation and Security.  These commitments extend to all the territories under the administration of Japan, including the Senkaku Islands.  In that context, the United States opposes any unilateral action that seeks to undermine Japan’s administration of the Senkaku Islands. The United States appreciates Japan’s establishment of a National Security Council and creation of a legal framework for information security that will facilitate enhanced policy and intelligence coordination between the two countries.  The United States welcomes and supports Japan’s consideration of the matter of exercising the right of collective self-defense.  The United States and Japan reaffirmed the importance of the U.S. extended deterrence to maintain regional security.  The United States and Japan are also making sustained progress towards realizing a geographically distributed, operationally resilient and politically sustainable U.S. force posture in the Asia Pacific, including the development of Guam as a strategic hub.  The early relocation of Futenma Marine Corps Air Station to Camp Schwab and consolidation of bases in Okinawa will ensure a long-term sustainable presence for U.S. forces.  In this context, we reaffirm our commitment to reducing the impact of U.S. forces on Okinawa. 

The United States and Japan also coordinate closely in multilateral financial and economic fora to advance trade liberalization and promote economic growth.  Our joint efforts are grounded in support for an international economic system that is free, open, and transparent, and embraces innovation.  In order to further enhance economic growth, expand regional trade and investment, and strengthen the rules-based trading system, the United States and Japan are committed to taking the bold steps necessary to complete a high-standard, ambitious, comprehensive  Trans-Pacific Partnership (TPP) agreement.  Today, we have identified a path forward on important bilateral TPP issues. This marks a key milestone in the TPP negotiations and will inject fresh momentum into the broader talks. We now call upon all TPP partners to move as soon as possible to take the necessary steps to conclude the agreement.  Even with this step forward, there is still much work to be done to conclude TPP.

We also support Japan’s Chairmanship in the OECD Ministerial Council Meeting on the occasion of the 50th anniversary of its accession to the OECD and support China’s hosting of the Asia Pacific Economic Cooperation (APEC) forum and Australia’s hosting of the G20 this year.  We are working together in the APEC and the G20 on the promotion of the role of women, which is an important domestic and foreign policy priority for both countries.  Through the Equal Futures Partnership and upcoming events such as the White House Summit on Working Families and Japan’s international symposium on women’s empowerment, the two countries are committed to ensuring women’s full participation in society.  Furthermore, the United States and Japan continue to be world leaders in high-technology, where our collaboration is expanding the frontiers of robotics, space, and medical science. 

The United States and Japan view energy security as vital to prosperity and stability.  Both sides welcomed the prospect of U.S. LNG exports in the future since additional global supplies will benefit Japan and other strategic partners.  The United States welcomed Japan’s new Strategic Energy Plan, which includes global, peaceful and safe use of nuclear energy and acceleration of the introduction of renewable energy.  Both countries are working together to promote the development of clean energy, including by facilitating business cooperation and deepening civil nuclear cooperation.  These steps are part of a broader effort to address the urgent challenge of global climate change.  Both countries plan to put forward robust post-2020 nationally determined contributions, building on decisions taken at the 19^th Conference of the Parties (COP-19) to the United Nations Framework Convention on Climate Change (UNFCCC), in order to promote the adoption of a protocol, another legal instrument, or an agreed outcome with legal force under the UNFCCC applicable to all Parties at COP-21 in Paris in December 2015.  We will continue to work with other countries on complementary initiatives to encourage reduction of greenhouse gas emissions. 

The United States and Japan are committed to promoting peace, stability, and economic growth throughout the world, including in Africa.  Through our recently launched senior-level U.S.-Japan Development Dialogue, we are expanding our development cooperation in these areas.  Furthermore, the United States and Japan are continuing bilateral policy coordination to address other global challenges and promote our common agenda, such as women’s empowerment, human security, humanitarian assistance, disaster risk reduction, the post-2015 development agenda, global health, climate change, counter-terrorism and transnational organized crime, cyber policy, the goal of a world without nuclear weapons, nuclear security, and cooperation at the United Nations, including in peacekeeping.  The United States looks forward to a reformed UN Security Council that includes Japan as a permanent member.  Our two countries are continuing to cooperate in the field of disaster risk management based on the experience of the Great East Japan Earthquake. 

The United States and Japan renew our commitment to deepening diplomatic, economic, and security cooperation with the Association of Southeast Asian Nations (ASEAN), recognizing the importance of ASEAN unity and centrality to regional security and prosperity.  We are coordinating closely to support ASEAN and its affiliated fora as its members seek to build a regional economic community and address trans-border challenges, including cybersecurity and cybercrime.  In this context, the two countries view the East Asia Summit as the premier political and security forum in the region.  We support the Asian Development Bank work to address the region’s infrastructure and connectivity needs.  The United States and Japan are collaborating to assist Southeast Asian littoral states in building maritime domain awareness and other capacities for maritime safety and security so that they can better enforce law, combat illicit trafficking and weapons proliferation, and protect marine resources.  The robust U.S. and Japanese civilian and military response to Typhoon Haiyan in the Philippines demonstrated our ability to collectively assist the region in disaster relief and risk reduction. 

To achieve our shared objectives of promoting peace and economic prosperity in the Asia-Pacific and around the globe, the United States and Japan are strengthening trilateral cooperation with like-minded partners, including the Republic of Korea, Australia, and India. 

The United States and Japan reaffirm our long-standing and indispensable partnership in shaping the future of the Asia-Pacific and beyond through close cooperation and collaboration.

ANNEX:  Leaders Statement on U.S.-Japan Bilateral Exchanges

# # #

  ANNEX:  Leaders Statement on U.S.-Japan Bilateral Exchanges

 Broad people-to-people exchange between Japan and the United States has been a key pillar of our Alliance since its inception.  Close ties and shared values between the people of the United States and the people of Japan form the foundation of the global partnership between our nations.

To ensure the future strength of the U.S.-Japan relationship, the two governments share the goal, established by the U.S.-Japan Conference on Cultural and Educational Interchange (CULCON), of doubling two-way student exchange by the year 2020.

Recognizing that people-to-people exchange is an irreplaceable investment in the future of the Alliance, President Obama and Prime Minister Abe announced their intent to create a new bilateral exchange program that would enable Japanese youth to visit the United States, enhance their English language abilities, and develop professional skills through internship opportunities.  The leaders also intend to explore internship opportunities for U.S. youth in Japan.  

Furthermore, Japan is going to send 6,000 Japanese students to the United States in fiscal year 2014 through student exchange support programs, including public-private partnerships such as the TOBITATE! Young Ambassador Program, further contributing to reaching our shared goal established by CULCON.  Japan and the United States also plan to explore new avenues for exchange, including support for Japanese researchers and programs linking the next generation of Japanese and U.S. leaders and friends. 

The Japanese government’s program inviting Japanese-American leaders to Japan has promoted broad understanding and support for the U.S.-Japan Alliance.  Building on this successful effort, Japan intends to broaden the scope of this initiative in fiscal year 2014 to further deepen mutual understanding. 

The Japanese government’s ongoing KAKEHASHI Project, under which a total of 4,600 young Japanese and U.S. citizens are expected to visit each other’s countries in exchange programs, has made a significant contribution to fostering mutual understanding.  In addition, following the March 2011 Great East Japan Earthquake, the U.S. government and the U.S.-Japan Council launched the TOMODACHI Initiative, a path-breaking public-private partnership that engages the private sector in promoting U.S.-Japan youth exchange.  To date, with the support of over eighty U.S. and Japanese companies, organizations, and individuals, more than 2,300 Japanese and U.S. youth have participated in TOMODACHI exchange programs. 

These initiatives build on established programs, such as the binational Fulbright Program, which has benefited nearly 10,000 Japanese and U.S. students and scholars over more than 60 years; the Japan Exchange and Teaching (JET) Program; the Student Exchange Support Program and the Japanese Government Scholarship provided by the Japanese Ministry of Education, Culture, Sports, Science and Technology; the National Science Foundation’s Summer Institutes in Japan, funded in cooperation with the Japan Society for the Promotion of Science; the Japan-U.S. Training Exchange Program for English Language Teachers (JUSTE); and the Mansfield Fellowship Program.  These programs have for years expanded and strengthened people-to-people connections between our countries. 

These government programs are complemented by the many non-governmental programs linking the people of our two countries, such as the Japan-America Societies, the U.S.-Japan Council, and the more than 400 sister-city and sister-state and prefecture relationships between Japan and the United States.  Such programs are indispensable, as are the dozens of academic associations, university linkages, and privately-funded exchanges, for example the Crown Prince Akihito Scholarship; the United States-Japan Bridging Foundation Scholarships, the Grew Bancroft Scholarship; and the Japan-America Student Conference, which celebrates its 80^th anniversary this year.  Japan and the United States aim to further encourage new and expanded non-governmental dialogues to bring together opinion leaders from both nations. 

Symbolizing the grassroots friendship uniting our nations, the U.S. government and a range of private sector partners have created the Friendship Blossoms Initiative, which is currently planting 3,000 American dogwood trees throughout Japan on behalf of the people of the United States, to reciprocate the City of Tokyo’s gift of 3,000 flowering cherry trees to Washington, DC in 1912.  The 1912 gift from Japan is celebrated each year during the National Cherry Blossom Festival, an iconic spring event in Washington, D.C. 

The President and Prime Minister welcomed the invigoration of exchanges between the U.S. Congress and the Diet of Japan, praising the work of the U.S.-Japan Caucus and the Congressional Study Group on Japan in the United States Congress, the Japan-U.S. Parliamentary Friendship League in the Diet of Japan, as well as the U.S.-Japan Legislative Exchange Program and the Japan-U.S. Senate Inter-parliamentary Conference.  Nearly 200 Diet Members visited the United States in fiscal year 2013, and the number of Members of Congress visiting Japan in 2013 more than doubled over the previous year and continues to increase in 2014. 

Finally, the United States and Japan note that millions of Japanese and U.S. citizens visit each other’s country every year to visit family and friends, enjoy tourist sites and cultural experiences, and conduct the business transactions that underpin the tight economic relationship between two of the world’s largest economies.  To facilitate this travel, the United States and Japan plan to expedite work to establish a reciprocal arrangement, including through Japan’s participation in the U.S. Global Entry program, to streamline border formalities for trusted travelers from both our countries, and to make travel between the United States and Japan easier, faster and more secure. 

U.S.-REPUBLIC OF KOREA RELEASE JOINT STATEMENT ON GLOBAL CLIMATE CHANGE

FROM: U.S. DEPARTMENT OF STATE

Joint Statement on Addressing Global Climate Change
Media Note
Office of the Spokesperson
Washington, DC
May 7, 2013

The text of the following statement was released by the Governments of the United States of America and the Republic of Korea on the occasion of the visit by ROK President Park Geun-hye to the United States:

The Republic of Korea and the United States share the view that anthropogenic climate change represents a threat to the security and sustainable development of all nations. As two of the world’s major economies, and as members of the G20, the Major Economies Forum (MEF) on Energy and Climate, and the Organization for Economic Cooperation and Development (OECD), the Republic of Korea and the United States, by virtue of their national circumstances and capabilities, are each in a position to carry out significant and concrete action to reduce the threat of climate change and its impacts.

Both the Republic of Korea and the United States are also making significant efforts towards implementing their 2020 mitigation pledges under the United Nations Framework Convention on Climate Change (UNFCCC). The United States will continue to strengthen measures to reduce its emissions through a wide range of actions in key sectors of the economy. The Republic of Korea is developing and implementing a set of mitigation and adaptation policies aimed at achieving a low carbon economy. Such actions will contribute not only to addressing the challenge of climate change, but also to building a more creative economy that generates new jobs and future growth engines. Through its successful bid to host the Green Climate Fund (GCF), the Republic of Korea has demonstrated its ambition in assuming a leadership role in addressing climate change, including providing support for and contributing to the GCF. Both the Republic of Korea and the United States will make efforts for the early and successful operationalization of the GCF.

Cooperative efforts between the Republic of Korea and the United States demonstrate our shared commitment to advancing climate action in the multilateral context. Both countries will continue to pursue a post-2020 agreement that is flexible and applicable to all Parties in the context of the UNFCCC, with substantive contributions from Parties consistent with national circumstances and capabilities. We will also work together in the context of the International Maritime Organization, while respecting each other’s position, to further enhance energy efficiency and therefore reduce greenhouse gas emissions from international shipping. We highlight the importance of the MEF and Clean Energy Ministerial as complementary venues for dialogue as well as platforms for exploring joint efforts to take concrete actions in major sectors of our economies, with the goal of bending down the global emissions curve. In addition, we emphasize the importance of taking action to advance near-term climate change agenda, including through the Climate and Clean Air Coalition (CCAC) to Reduce Short-Lived Climate Pollutants to support the achievement of the ultimate goal of the UNFCCC. A bilateral dialogue between both countries will be held regularly to exchange views on the climate change negotiations.

The Republic of Korea and the United States are engaged in a wide range of bilateral activities on climate change, particularly in the context of the recently approved 2013-2015 Work Program of the U.S.-Korea Environmental Cooperation Agreement. Under this agreement, we will intensify cooperation in a number of areas, including clean energy research and development, research on climate modeling, workshops on climate risk assessment and adaptation planning, and joint work on the development and adoption of smart grids and energy efficiency technologies that will produce new jobs and markets in this evolving sector.

The governments of the Republic of Korea and the United States will continue to treat climate change as an issue of high priority in the bilateral relationship as we work towards an ambitious and coordinated global response to this serious challenge.

U.S. STATE DEPARTMENT OFFICIAL'S REMARKS AT THE OECD HEADQUARTERS

FROM: U.S. DEPARTMENT OF STATE
Public-Private Partnerships to Shut Down the Global Illegal Economy and Build the New Markets and Investment Frontiers of Tomorrow

Remarks
David M. Luna
Director for Anticrime Programs, Bureau of International Narcotics and Law Enforcement Affairs
OECD Headquarters
Paris, France
April 2, 2013

Bonjour à nouveau!

I am honored to co-chair this first formal meeting of the Task Force on Charting Illicit Trade with my friend and colleague, Mr. Rolf Alter, Director for Public Governance and Territorial Development here at the Organization for Economic Cooperation and Development (OECD).

Many of you have been with us from the beginning of this bold initiative. Some of us represent governments, others multinational corporations, international organizations, think tanks, and civil society.

In October 2012, we spent a productive day exploring the harms posed by illicit trade and the illegal economy on global supply chain integrity, economic growth, market security, and development.

We agreed that no single government or company can design and implement an effective solution to this complex problem alone, nor does any single entity have a complete understanding of how vast the problem really is.

We recognized that inaction was not a viable option. But through collective action and a multi-sector approach, we could strive to shut down the global illegal economy and help communities to nurture transformative and sustainable markets. Instead of harmful counterfeits and illicit products that pose health hazards to our people, we could work together to build more dynamic economies focused on innovation, competitiveness, and, above all, a brighter future.

Illicit trade, corruption, and crime impede these aspirations and weaken the potential of our commitment, especially in the developing world.

Last fall, we decided to join forces to identify and quantify the risks and harms of illicit trade, to look at our policies with a critical eye, and to brainstorm how we can work together to block illicit trade and protect the supply chains that stimulate economies in countries at the level of production, transit, and consumption.

Today, we meet in Paris to carry forward this commitment. We applaud the OECD and Secretary-General Jose Angel Gurria for their leadership in taking on this challenge through the High-Level Risk Forum, which seeks to increase societal resilience to global risks and emerging threats such as natural disasters, pandemics, and, increasingly, crime.

I would like to extend a special thanks to the private sector participants who have agreed to share their expertise and confront this problem as equal partners with the government representatives in the room. This includes members of the OECD Business and Industry Advisory Committee, the World Economic Forum, and many others.

I also thank all the international organizations and governments who brought their commitment and expertise to develop effective public-private partnerships to combat the global illegal economy and help build and sustain tomorrow’s new markets and investment frontiers.

Illicit Trade: A Risk We Can Control

As humans, we tend to exaggerate the risks of spectacular events that are extremely rare but that result in many losses immediately—a factory fire, a terrorist attack, a natural disaster.

Meanwhile, we underestimate the risks of long-term events that affect us every day in small ways, adding up to a major impact.

Illicit trade is one of these risks.

In order to combat illicit trade, we must understand the risks and costs. We have the data. Now we need to aggregate and share it.

We need tools and maps to inform the public about the breadth of illicit trade and the challenges it poses.

We need to visualize the illicit networks and nodes we all know exist, because we experience their impact every day: when governments cannot afford to provide vital public services because customs revenues are being siphoned away by smugglers, criminals, and corrupt officials; when people die because the drug they were told would cure malaria actually contains chalk; when our nationals are subjected to forced labor to secure ill-gained finances for unscrupulous businesses in the global supply chain; when businesses suffer the loss of revenue from counterfeiting or black market distribution of their products.

When men, women, and children are trafficked to support the illegal economy, human trafficking further promotes breakdown of families and communities, deprives countries of human capital, undermines public health, creates opportunities for extortion and subversion among government officials, and imposes large economic costs.

When illicit financial flows and dirty money enter the global financial system, they taint and weaken the integrity of markets while giving false hope to victimized communities that illicit enterprise can replace fair and open markets.

When illicit actors and networks continue to profit from drugs, criminal activities, and corruption, legitimate commerce loses out as the illegal economy expands, and the legitimate one shrinks. This is an outcome we cannot afford in these austere financial times.

And when illicit trade, blood money, and corruption converge to create permissive sanctuaries, safe havens, and illicit financial hubs, insecurity and destabilization in some parts of the world can have a devastating ripple effect that threatens our shared agenda for enduring peace, prosperity, and market stability.

I look forward to working with all of you today, tomorrow, and in the coming months as we build a clearer panorama of the harms posed by illicit trade and illicit financial flows, develop innovative policy solutions to combat it, and promote effective public-private partnerships across the OECD, WEF, and other communities around the world, to improve the state of our world.

With these introductory remarks, let us begin our work.

SPAIN'S NATIONAL DAY

Map:  Spain.  Credit:  CIA World Factbook.

FROM: U.S. STATE DEPARTMENT

On the Occasion of Spain's National Day
Press Statement
Hillary Rodham Clinton
Secretary of State
Washington, DC
October 10, 2012


On behalf of President Obama and the people of the United States, I am delighted to send best wishes to the people of Spain as you celebrate La Fiesta Nacional de España this October 12.

With the 500th anniversary of Ponce de Leon’s landing in Florida approaching, we are reminded of Spain’s important contributions that have made a profound role in shaping this nation’s history. Today the United States and Spain are working closely together to tackle the challenges of an increasingly globalized world. We share a common desire to strengthen peace and security worldwide, protect the environment, and promote economic prosperity. The United States deeply values the strong alliance between our two nations as well as Spain’s important contributions to international organizations such as NATO, the United Nations, and the OECD.

On this Fiesta Nacional de España, we join with Spain in the spirit of friendship and look forward to deepening our cooperation in the years to come.




North facade of the Royal Palace in Madrid

 

ADDITIONAL INFORMATION FROM CIA WORLD FACTBOOK

Spain's powerful world empire of the 16th and 17th centuries ultimately yielded command of the seas to England. Subsequent failure to embrace the mercantile and industrial revolutions caused the country to fall behind Britain, France, and Germany in economic and political power. Spain remained neutral in World Wars I and II but suffered through a devastating civil war (1936-39). A peaceful transition to democracy following the death of dictator Francisco FRANCO in 1975, and rapid economic modernization (Spain joined the EU in 1986) gave Spain a dynamic and rapidly growing economy and made it a global champion of freedom and human rights. The government's major focus for the immediate future will be on measures to reverse the severe economic recession that started in mid-2008

U.S.-MEXICO RELATIONS

Map Credit:  Wikimedia.
FROM:  U.S. STATE DEPARTMENT
U.S. Relations With Mexico
Bureau of Western Hemisphere Affairs
Fact Sheet
June 25, 2012
U.S. relations with Mexico are important and complex. The two countries share a 2,000-mile border, and relations between the two have a direct impact on the lives and livelihoods of millions of Americans--whether the issue is trade and economic reform, homeland security, drug control, migration, or the environment. The U.S. and Mexico, along with Canada, are partners in the North American Free Trade Agreement (NAFTA) and enjoy a broad and expanding trade relationship. Through the North American Leaders’ Summits, the United States, Canada, and Mexico cooperate to improve North American competitiveness, ensure the safety of their citizens, and promote clean energy and a healthy environment. The three nations also cooperate on hemispheric and global challenges, such as managing transborder infectious diseases and seeking greater integration to respond to challenges of transnational organized crime.

U.S. relations with Mexico are important and complex. U.S. relations with Mexico have a direct impact on the lives and livelihoods of millions of Americans – whether the issue is trade and economic reform, homeland security drug control, migration, or the environment. The scope of U.S.-Mexican relations is broad and goes beyond diplomatic and official contacts. It entails extensive commercial, cultural, and educational ties, with over 1.25 billion dollars worth of two-way trade and roughly one million legal border crossings each day. In addition, a million American citizens live in Mexico and approximately 10 million Americans visit Mexico every year. More than 18,000 companies with U.S. investment have operations in Mexico, and U.S. companies have invested $145 billion in Mexico since 2000.

Cooperation between the United States and Mexico along the 2,000-mile common border includes state and local problem-solving mechanisms; transportation planning; and institutions to address resource, environment and health issues. Presidents Obama and Calderon created a high level Executive Steering Committee for 21st Century Border Management in 2010 to spur advancements in creating a modern, secure, and efficient border. The multi-agency U.S.-Mexico Binational Group on Bridges and Border Crossings meets twice yearly to improve the efficiency of existing crossings and coordinate planning for new ones. The ten U.S. and Mexican border states are active participants in these meetings. Chaired by U.S. and Mexican consuls, Border Liaison Mechanisms operate in "sister city" pairs and have proven to be an effective means of dealing with a variety of local issues including border infrastructure, accidental violation of sovereignty by law enforcement officials, charges of mistreatment of foreign nationals, and cooperation in public health matters.

The United States and Mexico have a long history of cooperation on environmental and natural resource issues, particularly in the border area, where there are serious environmental problems caused by rapid population growth, urbanization, and industrialization. Cooperative activities between the U.S. and Mexico take place under a number of arrangements such as the International Boundary and Water Commission; the La Paz Agreement, the U.S.-Mexico Border 2012/2020 Program; the North American Development Bank and the Border Environment Cooperation Commission; the North American Commission for Environmental Cooperation; the Border Health Commission; and a variety of other agreements that address border health, wildlife and migratory birds, national parks, forests, and marine and atmospheric resources. The International Boundary and Water Commission, United States and Mexico, is an international organization responsible for managing a wide variety of water resource and boundary preservation issues.

The two countries also have cooperated on telecommunications services in the border area for more than 50 years. There are 39 bilateral agreements that govern shared use of the radio spectrum. When the United States completed the transition to digital television in 2009, a high percentage of Mexican border cities did the same, well ahead of Mexico’s deadline to complete the transition by 2021. Recent border agreements also cover mobile broadband services, including smartphones, and similar devices. The High Level Consultative Commission on Telecommunications continues to serve as the primary bilateral arena for both governments to promote growth in the sector and to ensure compatible services in the border area. The United States and Mexico have also signed an agreement to improve cross-border public security communications in the border area.

U.S. Cooperation with Mexico
The Merida Initiative is an unprecedented partnership between the United States and Mexico to fight organized crime and associated violence while furthering respect for human rights and the rule of law. Since 2010, our Merida Initiative cooperation has been organized under four strategic pillars. The first pillar aims to disrupt the capacity of organized crime to operate by capturing criminal groups and their leaders and reducing their revenues through better investigations, successful prosecutions, and shipment interdictions. The initiative’s second pillar focuses on enhancing the capacity of Mexico’s government and institutions to sustain the rule of law. The Merida Initiative’s third pillar aims to improve border management to facilitate legitimate trade and movement of people while thwarting the flow of drugs, arms, and cash. Finally, the fourth pillar seeks to build strong and resilient communities.

U.S. cooperation with Mexico under the Merida Initiative directly supports programs to help Mexico train its police forces in modern investigative techniques, promote a culture of lawfulness, and implement key justice reforms. Merida Initiative assistance also supports Mexico's efforts to reform its judicial sector and professionalize its police forces reflect its commitment to promote the rule of law and build strong law enforcement institutions to counter the threat posed by organized crime. The U.S. Congress has appropriated $1.9 billion for the Merida Initiative since it began.

U.S. Agency for International Development (USAID) programs support Mexican efforts to address key challenges to improving citizen security and well-being, with program approaches specifically geared to the U.S.-Mexico relationship. Programs under the Merida Initiative develop and test models to mitigate the community-level impact of crime and violence, and support Mexico’s implementation of criminal justice constitutional reforms that protect citizens’ rights. Additional USAID programs support Mexico’s commitment to reducing greenhouse gas emissions and to enhancing economic competitiveness to improve citizens’ lives.

Bilateral Economic Relations
Mexico is the United States’ second-largest export market (after Canada) and third-largest trading partner (after Canada and China). Mexico's exports rely heavily on supplying the U.S. market, but the country has also sought to diversify its export destinations. Nearly 80 percent of Mexico’s exports in 2011 went to the United States. In 2011, Mexico was the second-largest supplier of oil to the United States. Top U.S. exports to Mexico include mechanical machinery, electronic equipment, motor vehicle parts, mineral fuels and oils, and plastics. Trade matters are generally settled through direct negotiations between the two countries or addressed via World Trade Organization or NAFTA formal dispute settlement procedures.

Mexican investment in the United States has grown by over 35 percent the past five years. It is the seventh fastest growing investor country in the United States.

Mexico is a major recipient of remittances, sent mostly from Mexicans in the United States. Remittances are a major source of foreign currency, totaling over $22.73 billion in 2011. Most remittances are used for immediate consumption -- food, housing, health care, education -- but some collective remittances, sent from Mexican migrants in the U.S. to their community of origin, are used for shared projects and infrastructure improvements under Mexico’s 3 for 1 program that matches contributions with federal, state and local funds.

Mexico is making progress in its intellectual property rights enforcement efforts, although piracy and counterfeiting rates remain high. Mexico appeared on the Watch List in the 2012 Special 301 report. The U.S. continues to work with the Mexican Government to implement its commitment to improving intellectual property protection.

Mexico's Membership in International Organizations
Mexico is a strong supporter of the United Nations (UN) and Organization of American States (OAS) systems, and hosted the G-20 Leaders’ Summit in June 2012. Mexico and the United States belong to a number of the same international organizations, including the UN, OAS, Asia-Pacific Economic Cooperation (APEC) forum, G-20, Organization for Economic Cooperation and Development (OECD), International Monetary Fund (IMF), World Bank (WB), and World Trade Organization (WTO). In January 2012, Mexico became a member of the Wassenaar Arrangement, a multilateral export control regime for conventional arms and dual-use goods.

RUSSIA INVITED TO JOIN NUCLEAR ENERGY AGENCY

Photo:  Hope Creek Nuclear Plant.   Credit:  Wikimedia.
FROM:  U.S. STATE DEPARTMENT
United States Welcomes Invitation for Russia to Join the Nuclear Energy Agency
Media Note Office of the Spokesperson Washington, DC
May 23, 2012
Today, Russia was invited to join the Nuclear Energy Agency (NEA) at a ceremony hosted by its parent body, the Organization for Economic Cooperation and Development (OECD) in Paris. Russia requested membership in the NEA, which is a leading intergovernmental authority for fostering nuclear safety and nuclear energy collaboration. The United States fully supports Russian membership, and looks forward to working with Russia in this area for the mutual benefit of all members. With its accession, Russia will bring its experience and focus on diverse nuclear energy technologies and approaches to the NEA.

The ceremony marking the invitation to Russia comes amidst the OECD’s yearly meeting of ministers and other high ranking officials from around the world. Ambassador Karen Kornbluh, U.S. Permanent Representative to the OECD, and Under Secretary of State for Economic Growth, Energy, and the Environment Robert Hormats attended the ceremony on behalf of the United States. Russia is currently in the process of accession to the OECD.

The 30-member NEA is a specialized agency within the OECD. The NEA assists its member countries in maintaining and further developing the scientific, technological and legal bases required for a safe, environmentally friendly and economical use of nuclear energy for peaceful purposes. It provides authoritative assessments and works to forge common understandings on key issues as input to government decisions on nuclear energy policy and to broader OECD policy analyses in areas such as energy and sustainable development.