Handling Rapid Trade Law Changes a Roller Coaster Ride for This In-House Counsel
"It's dynamic and very exciting," Susan Jackson of Novelis told Corporate Counsel. "Things can change in a moment from one tweet."
February 11, 2020 at 04:20 PM
5 minute read
In-house counsel Susan Jackson recalls when she was handed the North American trade portfolio at Novelis Corp. about five years ago, she wasn't all that thrilled. She even thought it might be boring.
She found just the opposite. "It's dynamic and very exciting," Jackson told Corporate Counsel in a recent interview. "Things can change in a moment from one tweet." For example, President Donald Trump can and has sent the stock market tumbling with a tweet threatening to levy more tariffs on imported goods.
Michael Taylor, her outside counsel and a partner at King & Spalding in Washington, D.C., said he warned Jackson at the time to get ready for the wild ride. "You're going to learn more about the company and have more day-to-day interaction with all levels of the company than you ever have before," he told her. "Trade touches everything."
Novelis is a global producer of flat-rolled aluminum products, used in beverage cans, automobiles and electronics, as well as the world's largest recycler of aluminum. It is a subsidiary of Aditya Birla Group, a multinational conglomerate based in Mumbai, India.
Atlanta-based Jackson said she has been with Novelis for 18 years, starting while she was still in law school. Her title is counsel for commercial, trade and information governance.
She said rumors, tweets and on-again, off-again tariffs keep her busy days, nights and weekends. "Metal manufacturing is a moving target right now, and the changes are rapid," she said. "At any moment I can have the CEO or the chief financial officer at my desk, asking me what's new and what does it mean. And the next minute it could be the delivery truck drivers."
Speed is key, she added. "They need the right answer, and they need it right away."
Jackson said she is invited to many more company meetings "because there is an actual business insight you can provide, because you are on top of these things. They want to know how best to position the company, and our customers, to deal with the changes."
Novelis is in a unique situation, she said, because it has sister facilities in the U.S. and in Canada, with a supply chain loop linking the two countries. "We are able to get a seat at the table with people in both administrations because we are seen as a large manufacturer providing high-paying jobs in West Virginia, Kentucky, upstate New York and Ontario. Our voice is heard on the trade front."
When a new tariff is announced, Jackson said, "I will have people at my desk all the way up to the CEO, and the parent company in India on the phone. People in the facilities call, wanting to know what it means to them. The sales team calls because they are getting calls from their customers. Everyone needs to know what is happening in real time and what it means to them."
One of her calls goes to Taylor. "We help ensure that Novelis is providing accurate information to its customers," he said. "It's a nuance, with a ripple effect on down the market. There's a lot of coordination between Susan and [communications and government affairs] so they are speaking with one accurate voice."
Jackson said she supports the public affairs team while also having direct conversations with customers when needed. "They want to meet with me and to know what I know," she explained. "It's a value add for customers."
Taylor said over the past five years he has also seen a change in awareness within most companies. "Trade was always an agenda item for the board," he said, but today senior officers and the board are asking for more detailed and up-to-date information.
"Even at the CEO and chief financial officer level, trade is becoming an issue in their [peer] groups," Jackson agreed. "It was always a line item, but now it has become a singular focus. In the company, trade leads the discussions at finance, sales, procurement and other executive sessions."
Jackson said she is also getting more involved in government affairs herself, working with the Aluminum Association trade group to make sure the industry strengthens its protections against imports by making maximum use of trade laws.
In addition, the Aluminum Association, as well as the U.S. Commerce Department, have filed trade cases against aluminum imports from China.
"In the past, we have been reactive," she said. "Now we are trying to lead the discussions [in Congress], especially after the recent signing of the USMCA [U.S.-Mexico-Canada] trade agreement."
For example, she said, the government is formulating a domestic certification program for aluminum that goes into vehicles. "Rather than have them dictate to us, we want to partner with them to say, 'This is what a policy should look like.' We want to work together to come up with a certification process."
Securing the supply chain has also become a critical task for Jackson's team. "It's everything from cybersecurity to physical security. We are cutting-edge with what we do to secure our people, our facilities and our products, including responsibly sourcing our materials," Jackson explained.
King & Spalding's Taylor has worked in the international trade practice for about two decades. "In the last few years people like Susan are more and more important to the daily decision-making process," he said, "from deciding which trucking company to use, to making board-level decisions. Owning and understanding information in the trade space is invaluable to a company."
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