ICC calls on G8 and G20 to keep markets open
In the wake of one of the most challenging years in business history,
the International Chamber of Commerce (ICC) has called on G8 and G20
leaders meeting in Toronto to take action in three areas that are
crucial to the future of the world economy: international trade and
investment; climate change and energy; and intellectual property and
innovation.
The ICC recommendations include prioritizing the restoration of trade
finance levels, resisting protectionism, concluding the Doha Trade Round
of trade negotiations before the end of the year, a list of specific
steps to be taken for effective action on climate change, and upholding
commitments to curb counterfeiting and piracy.
ICC, which represents companies from all sectors in more than 120
countries, regularly provides global business views to the G8 and G20.
The London G20 Summit in 2009 pinpointed international trade as an
engine of economic growth.
The current ICC statement cautions leaders that lurching into
economic nationalism would seriously dislocate commercial activity and
have far-reaching negative effects across supply chains worldwide.
World trade, which contracted by 12.2 percent in 2009, is forecast to
rebound by 9.5 percent in 2010 if oil prices, major currencies and
financial markets remain relatively stable.
"The multilateral trading system has again proven its worth during
the worst economic crisis since the Great Depression of the 1930s," ICC
Chairman Victor K. Fung said. "But we call on world leaders to avoid
protectionist measures that would be detrimental to the still fragile
economic recovery."
Given the present state of the world economy, ICC warrants that
completion of the Doha Round of trade negotiations is more pressing than
ever before. Expressing disappointment at the lack of progress in the
negotiations, the ICC statement appeals for decisive leadership to bring
the Round to a successful conclusion before the end of the year.
"A deal this year would send a strongly positive signal - just when
it is direly needed - that governments can work together effectively to
reinforce and update a central pillar of the international economic
system," ICC said. "There are many hard-won, trade- and wealth-creating
offers already on the table. These must not be lost."
In a call for continued efforts to restore trade finance to more
normal levels, the ICC statement draws attention to a recent ICC survey
that reveals prospects for strong and lasting trade recovery are mixed.
Despite some positive signals, ICC notes that access to affordable trade
finance remains constrained with small- and medium-sized enterprises
facing the biggest obstacles.
"ICC believes it important to further enlarge multilateral trade
finance programs in order to expand both capacity and coverage,
especially for low-income and export-dependent countries," the statement
said. "At the same time, national programs should be reinforced to
guarantee the flow of trade in times of economic stress and to provide
refinancing options - in particular through export credit agencies.
Climate change and energy
Emphasizing synergies between comprehensive global action on climate
change and multilateral rules-based trade, ICC states that economic
growth and open trade provide the best conditions for the dissemination
of climate-friendly technologies.
ICC maintains that while the Copenhagen Accord reached at the United
Nations climate change summit in 2009 was an important step forward, it
did not give business the clear signals it sought to unleash investment
and deployment of cleaner technologies required to combat the problem.
ICC noted however that the Accord can provide direction for important
next steps if it can be translated into efficient and effective action.
"Despite the absence today of a post-2012 global framework agreement,
companies worldwide will maintain their already substantial efforts to
reduce greenhouse gas emissions, the ICC statement said. "The private
sector is the most important innovator and investor in clean
technologies but can do more if provided with clarity, predictability
and flexibility through a global framework agreement."
Counterfeiting and copyright piracy
Leaving virtually no industry sector untouched, counterfeiting and
copyright piracy has become a global epidemic, depriving governments of
tax revenues, endangering the lives of consumers and undermining their
confidence.
According to a new study by Frontier Economics, commissioned by ICC,
counterfeiting and piracy cost G20 governments more than Pounds 100
billion a year in lost tax revenues and place 2.5 million legitimate
jobs at risk.
ICC called upon the G8 and G20 to commit their countries to introduce
and effectively enforce sanctions that are real deterrents to
intellectual property crimes.
Referring to ICC's Business Action to Stop Counterfeiting and Piracy
initiative, the statement concludes: "(ICC) stands ready to assist
governments the world over in the elaboration and implementation of
effective anti-counterfeiting and piracy programs at national level, and
to advise them on improving cross-border cooperation." |