*{BUSINESS STATEMENT TO THE 1996 OECD COUNCIL MEETING AT MINISTERIAL LEVEL 21 - 22 MAY 1996 Introduction} 1. The business community of the 26 OECD Countries is pleased to present this statement for the consideration of participants in this year's OECD Council Meeting at Ministerial Level. The recommendations presented below reflect the consensus views of the 32 national industry and employer organisations which are members of the Business and Industry Advisory Committee to the OECD (BIAC). 2. We believe that the messages emerging from the 1996 Ministerial will be of considerable importance to the OECD, its Member governments, businesses and employees. This is because, in many ways, the world economy is at a crossroads with the accelerating pace of globalisation shaping the manner in which we will live and work at the turn of the next millennium. The OECD has continually promoted the benefits of globalisation, and promulgated the types of policy reforms necessary for our societies to succeed under new paradigms of world competition. However, there are now undeniable socio-political pressures in Member countries for governments to address broad concerns about economic security. Serious questions are being posed about whether international trade and investment are really as beneficial as suggested by supporters of *{free [note : raturé} open markets. As one of the foremost proponents of liberal trading and investment systems, the OECD bears a special responsibility to respond to these questions and there will be no better opportunity than in the 1996 Ministerial communiqué. 3. BIAC Members share the view that the continuing trend towards globalisation is not only a positive force for worldwide wealth creation and consumer choice, but an inevitable one. It is impossible to reverse the technological advances which are making international production and distribution increasingly important objectives in today's business strategies. Efforts taken at the national level to restrain or delay the effects of globalisation through protectionist or other regulatory measures will only make the necessary adjustments more costly -- and painful -- later on, with predictable political fall-out. If the continuing shifts in political allegiance in OECD Member countries is primarily the result of voters' concerns about long-term economic security, political leaders should not respond to these fears with short-term, defensive solutions, but with a clear vision of the future competitiveness of their economies and a blueprint of the necessary policies to make it happen. 4. In this statement to OECD Ministers, the international business community provides its recommendations for policy actions and OECD work to support these long-term objectives. *partie=titre Macroeconomic Policy *partie=nil 5. The present economic situation in the OECD area can only be characterised as uneven, a factor which is clearly influencing the feelings of uncertainty in our countries. In some OECD Members, particularly the United States, the statistics point to relatively sound economic conditions with stable, non-inflationary rates of growth. However, despite a positive outlook, economic insecurity continues to be felt at all levels of the workforce. 6. In many other OECD countries, relatively weak performance combined with already untenable public imbalances continues to limit policymakers' options, particularly for certain European Members which are also striving to meet the Maastricht criteria for monetary union. Historically high levels of unemployment in many countries strengthens the concern both within and outside of the labour force that governments are somehow unable to resolve their problems. 7. *partie=titre Monetary Policy: *partie=nil To many, the perceived low risk of inflation leads to the conclusion that monetary policy should be eased in a coordinated effort to provide for generally lower interest rates. In BIAC's view, an indiscriminate reduction in interest rates poses an unacceptable risk of accelerating inflation. However, given the excess capacity and slow growth in many countries and the necessity/desirability of maintaining restrictive fiscal policies, more stimulatory monetary policy should be pursued in countries where the inflationary risk is low. 8. *partie=titre Fiscal Policy: *partie=nil The international business community applauds the efforts which many OECD Countries are making to reign in public spending. The decisions are clearly difficult and have led to considerable political debate. However, it is obvious that some OECD Governments have successfully convinced their constituents of the negative impact of public indebtedness for future generations, and have thus found the political support to work towards correcting the imbalances. Other Governments continue to face popular resistance because they have failed to convince voters of the need for fiscal retrenchment. Differences in the commitment to and pace of corrective action will, over time, create relative differences in national economic health and competitiveness. Those governments which are not taking decisive measures now will inevitably find it far more difficult to deal with longer range problems (e.g., associated with ageing populations) later. BIAC thus urges all OECD Governments to continue the trend towards fiscal consolidation, with an emphasis on reduced public expenditures rather than higher taxes. The latter will only exacerbate the difficulties of creating employment and improving corporate competitiveness in the our economies. *partie=titre Labour Policy *partie=nil 9. The international business community represented by BIAC fully supports the OECD's recommendations for resolving the serious problem of unemployment in many Member countries. Given our preference for prudent management of monetary and fiscal policies, we firmly believe that there can be no real progress towards meaningful job creation without the structural reforms highlighted in the OECD's analysis for individual Members. Similar to our views above, we acknowledge that many of the reforms are politically unpopular. However, those governments which are most successful in overcoming resistance to structural change will provide their national populations with greater job opportunities over the medium to long term. BIAC firmy believes that promoting greater awareness of the need for structural changes in labour market regulations, social security schemes, etc., as noted in the Jobs Study recommendations, is a primary challenge for the OECD and its Member countries. We therefore join the OECD in urging Member Governments to take positive steps towards implementing their respective recommendations as well as the policy conclusions in the thematic reviews drawing on all available resources at the local national and international level. Business is fully prepared to participare in these efforts. Although all nine reform areas outlined in the Job Study are important, the following should be considered priorities for all OECD countries: i. Nurture an entrepreneurial climate by eliminating impediments to, and restrictions on, the creation and expansion of enterprises. This is a crucial recommendation. Governments can easily stifle entrepreneurial activities by imposing needless administrative and regulatory burdens. While there are many other important policy aspects to nurturing entrepreneurship, administrative burdens cause time delays and extra expenses which can often keep a sound business idea from becoming a successful venture. For this reason, BIAC applauds the OECD's current efforts to conduct a broad study on regulatory reform in its Member countries (see below) and looks forward, in particular, to serious recommendations on how to improve the interaction between regulation and entrepreneurship. ii. Make wage and labour costs more flexible by removing restrictions that prevent wages from reflecting local conditions and individual skill levels, in particular of younger workers; and reform employment security provisions that inhibit the expansion of employment in the private sector. These two recommendations are combined because we believe there are no greater impediments to job creation than wage costs which are effectively maintained above productivity levels and restrictions on companies' ability to determine their optimal labour needs. Such wage distortions can result from artificially imposed controls (i.e. minimum wages) or regulated levels of non-wage labour costs which are too high. Whatever the cause, labour costs which are higher than justified by productivity levels are a decisive cause of unemployment in many countries, particularly for the young. Similarly, overly protective employment security provisions provide another important reason for unemployment in many OECD Members. However wellintentioned such provisions may be in ensuring greater certainty for the employed, they remain a serious consideration in enterprises' short-term employment planning, and often prevent changes which would benefit the unemployed over the long term. iii. Improve labour force skills and competences through wide-ranging changes in education and training systems. This is clearly another critical recommendation for nearly all OECD Members. As a result of the continuing rapid developments in information and production technologies, there is a considerable risk that large percentages of the workforce will be marginalised without the necessary training and retraining to keep their skills abreast of the changes. The risks for the unemployed are even greater. These concerns underpinned much of the discussion and conclusions of the January 1996 meeting of OECD Education Ministers and BIAC fully supports the emphasis placed on "lifelong learning" by Member governments. In this regard, we agree that investment in initial education, general as well as vocational, is a crucial factor for our economies' well-being. Businesses in many countries have successfully formed partnerships with educational institutions and their employees to integrate learning with working life. Although much remains to be done to make life-long learning a reality for all, future work on this subject should focus on how to build on existing examples of successful partnerships. 10. In order to help promote these reforms and others proposed by the OECD for individual Member countries, BIAC Members have agreed to help publicise the OECD Economic Surveys, and particularly the new chapters on Implementing the Jobs Study, at the national level. We hope that the Economic Surveys will serve as the basis for continuous surveillance by the OECD of measures taken by Member countries to implement the necessary reforms. *partie=titre Regulatory Reform *partie=nil 11. Against the backdrop of continuing globalisation of economic activities and competition, efficient and transparent regulatory systems, supported by market mechanisms and competition policy principles, are playing an increasingly important role in economic performance. BIAC believes that further international dialogue on this subject is indispensable, and we strongly support the OECD's initiative to complete a comprehensive study on Regulatory Reform and Public Sector Management. BIAC stands ready to contribute to this project through its various Committees and its new Working Group on Regulatory Reform. *partie=titre Policies for an Information Society *partie=nil 12. BIAC welcomes the current work in the OECD Committee for Information, Computers and Communications Policy (ICCP) focusing on the emergence of the Global Information Infrastructure (GII) and the Global Information Society (GIS). Specifically, we endorse the GIIGIS Statement of Policy Recommendations which is being submitted to the OECD Council Ministerial. BIAC commends the Statement for its recognition that the development of the GII will be led by the private sector, with an important role for governments in setting the overall policy framework. 13. BIAC also applauds the recent emphasis given by the OECD Committee on ICCP to the issues of security, privacy and intellectual property protection in the GII-GIS. It is our strong belief that governments must reach international consensus rapidly on these issues to ensure that proprietary information of private individuals and corporations are secured across global networks. Concerning privacy, BIAC continues to support the OECD Guidelines on Transborder Data Flows which have stood the test of time since their inception fifteen years ago. We encourage the OECD governments to continue to embrace these guidelines. 14. BIAC supports the ongoing work of the Working Party on Telecommunications and Information Services Policy (TISP), in particular its contribution to the knowledge and understanding of the benefits of widening competition balanced by appropriate competitive safeguards in telecommunications and information services. We believe that TISP represents a most useful forum for OECD countries and others to learn from one-another's experience in innovative institutional and technological processes to broaden the contestability of markets in this sector. *partie=titre Environment *partie=nil 15. A major challenge and potential opportunity of increasing globalisation is the protection of the natural environment upon which all economic activity depends. As society has come to recognise the mutually reinforcing relationship between environmental protection and economic development, business and governments have acknowledged the benefits of seeking innovative, market-based solutions to environmental problems. Firms have learned that only by integrating environmental concerns into their corporate strategies can they remain efficient and competitive. Increasingly, governments have sought to collaborate with industry to develop effective environmental policies. 16. BIAC supports the OECD's role in providing sound, science-based analysis of the linkages between the global economy and the environment. In addition, we believe that the OECD is particularly well-suited to meet the growing need for in-depth examination of technological solutions to future environmental challenges such as climate change, for developing and prioritising strategies which are eco-efficient, and for considering voluntary or negotiated agreements as cost-effective alternatives to traditional regulatory approaches and/or environmental taxes in all areas of environmental management, including, notably, risk management. We encourage the OECD to strive for these goals through the continued horizontal coordination of work in diverse policy domains, and to contribute to global environmental management by continuing to promote the compatibility between environmental policies and liberal trade and investment systems, sound tax policy and fair competition. *partie=titre Policies to Strengthen the Multilateral System *partie=nil 17. The international business community attaches great importance to continuing liberalisation of the multilateral trade and investment system. It is thus of considerable concern to us that the positive effects of greater economic integration are being questioned. As stated at the beginning of this paper, the technological advances which are making global production and distribution strategies possible can not be reversed. However, if governments cede to populist arguments by implementing protectionist measures at the national level and attempting to restrictively manage international trade, they could fail to meet the challenge of structural reform needed to maintain sound footing in a globally competitive economy. 18. BIAC Members acknowledge that global economic integration does not occur without adjustment costs and that the effects are frequently painful for the individuals concerned. However, we believe Governments should focus their efforts on helping those affected to cope with the necessary adjustments rather than attempt to restrain, and hence distort, the forces of change. Such an approach will ensure that the benefits of globalisation accrue to all participants in the world economy, whether they are from within or outside the OECD area. 19. The OECD plays a crucial role in promoting sound policy analysis and recommendations for the international trade and investment system. We support the Organisation's efforts to study many of the new challenges for policy-makers, and in particular, the trade interface with other policy domains. Since the OECD's conclusions may feature prominently in the December 1996 WTO Ministerial Meeting, BIAC's recommendations to OECD Ministers on multilateral issues include our priorities for the WTO Ministerial. 20. *partie=titre Investment: *partie=nil Regarding work now in progress at the OECD, BIAC's top priority is a successful completion of the negotiation of a Multilateral Agreement on Investment. We view this as the most important OECD effort, one which has the greatest potential to adjust multilateral disciplines to the realities encountered by companies in the global marketplace. BIAC is encouraged by the progress to date and urges OECD Ministers to maintain the momentum through latter phases of the talks. We strongly urge governments to reach an agreement by May 1997 which embodies high standards of liberalisation, protection of investors rights; and effective investor-state as well as state-state dispute settlement on all matters covered under the agreement. 21. BIAC recognises that any truly valuable multilateral investment agreement should be open to non-member countries and BIAC strongly supports the OECD efforts to keep non-member economies informed of progress and to elicit their comments as the negotiation proceeds. We urge the OECD to encourage as many non-member countries as possible to accede to the eventual Agreement. For its part, BIAC is co-operating with the International Chamber of Commerce to provide a similar private sector channel for dialogue on the negotiations. 22. In the WTO context, while the MAI is being negotiated and ratified, the WTO should begin comprehensive discussion of the trade and investment interaction to prepare for the integration of a multilateral investment discipline into its structure which would cover the largest possible number of WTO members. One element of this preparation is the stocktaking exercise for the TRIMS agreement, but this needs to be complemented by case studies involving the experiences of developing country members of the WTO which have acted unilaterally to liberalise treatment of foreign investment and discussions on the broader relationship between trade and investment. 23. *partie=titre Trade Policy: *partie=nil The international business community has two main priorities in the trade policy field. First, to assure that the new Uruguay Round disciplines and liberalisation program are fully implemented along with completion of remaining sector work. Second, we hope that the December WTO Ministerial will launch a work program that will permit it to meet the challenges of the next decade and to deal with issues that have taken on increasing importance since the conclusion of the Round. The latter involves new initiatives for liberalisation as well as elements of the work on so-called new issues on-going in the OECD, which we will address below. While BIAC members have many specific recommendations for the WTO Ministerial, BIAC's purpose in this statement is to focus attention on the relevance of OECD work for that session. 24. It is important that the WTO vigorously fulfil its new mandates in such areas as Trade and Environment (addressed below), the work in services, for example that relating to on-going services negotiations or to the effort to achieve mutually acceptable credentials and reduce barriers for trade in professional services. At the same time, we also believe that the WTO must not cease its efforts in the traditional areas involving border impediments to trade. Further tariff reductions should be an important element of future WTO work, and there are related areas such as rules of origin and customs valuation which bear on the problems of border impediments, which are part of the stock-taking review for the Ministerial. In addition, BIAC urges OECD Ministers to raise overall modernisation of customs procedures as trade issue which merits attention of Ministers in December. In our view, WTO should support the WCO/ICC dialogue on the draft ICC Model for Customs Modernisation. 25. Improvement of the government procurement agreement and its extension to more WTO members is another area that we believe should be a priority for the WTO, and we think that OECD can provide useful analytical support. Another issue of increasing importance is to ensure that the energetic activity building regional free trade areas is compatible with WTO disciplines and does not create a proliferation of different rules and practices related to the movement of goods and services across borders that increases inefficiencies and impediments to trade. We think the OECD analytical work in this area can be of particular assistance to the WTO task. 26. Among the BIAC top priorities during the Uruguay Round were the areas of services, intellectual property protection and trade-related investment measures, and we urge particular attention to these areas in the stocktaking and implementation exercises for the Ministerial. The WTO Intellectual Property agreement should be fully implemented by all WTO members at least according to established deadlines, if these cannot be accelerated. There are several proposals for strengthening this agreement, which should be considered. On services the Ministerial should initiate work to see how the GATS agreement can be made more effective; for example, a top priority should be to increase and improve the present system of scheduled liberalisation commitments and their transparency. This work should prepare or accelerate the initiation of further negotiations in the year 2000. Strong support should also be given to the on-going work on services such as the effort to reduce barriers and to achieve mutual accepted credentials for professional services. WTO ministers should also begin to look at ways to make the TRIMS agreement more effective, which we will elaborate on below. 27. *partie=titre Trade and Environment: *partie=nil BIAC supports the OECD's on-going effort to clarify the policy linkage between trade and environment and it strongly supports the 1995 report of the Joint Working Group to ministers. This report provides policy recommendations for many of the trade and environment issues; these recommendations are generally compatible with BIAC's emphasis on market-based approaches to environmental management and avoiding unilateral trade sanctions to enforce environmental standards. The 1995 OECD report should inform the WTO Ministerial discussion on trade and environment; this report identifies several areas which the Joint Working Group identified for further work and decision in the WTO. One of the conclusions of the OECD report, which we strongly support, is the need for further work in the WTO on the role of trade measures in multilateral environmental agreements (MEAs) and the relationship with current GATT rules. On this issue, it is BIAC's position that MEAs are properly negotiated in environmental institutions, not in the WTO or other trade organisations. If, however, the negotiators of an MEA decide, as a last resort after considering alternatives, that trade measures are necessary to reach the environmental goals of an agreement, the development of such measures should conform to certain process criteria and principles to qualify for an exemption under GATT/WTO rules. BIAC has issued a new recommendation on such criteria, which we commend to the OECD and which should inform WTO work. 28. *partie=titre Trade and Competition: *partie=nil As access to markets for goods and services is a significant factor in competition within national markets, the pressure to address private actions and artificial barriers that impede such access will grow. As markets become increasingly global, it makes sense to view competition policy in an international context. Greater co-operation among competition authorities is clearly a step in this direction. BIAC recognises that the OECD Trade and Competition Law and Policy Committees are already addressing the linkages between their respective policy domains. Now that the Uruguay Round disciplines are agreed, it is timely for OECD to define principles such as market access, to guide further policy development to address trade and competition interactions. One focus should be the relationship between barriers to entry and effective competition; another area for consideration is how certain competition principles might be used in the determination of whether trade measures should be applied. Much work remains to find common agreement between trade and competition authorities on multilateral approaches to minimise frictions in this area before the issue can be addressed effectively in the WTO. BIAC believes that the OECD is the best forum to do this and that its work toward identifying common principles and approaches should be accorded higher priority. BIAC is initiating a similar cross-disciplinary discussion and looks forward to consultations on this important subject. In this regard, BIAC has already had a discussion with OECD ambassadors on trade and competition issues last November. In particular, BIAC strongly supports the OECD work on market contestability. 29. *partie=titre Trade and Labour Standards: *partie=nil The largest majority of our members continues to believe that there appears to be no evidence to suggest that trade with Non-Member countries is significantly contributing to unemployment or undermining OECD labour standards *{*}. On the contrary, non-OECD country markets continue to provide a valuable source of employment in OECD countries. To the extent there are pressures on employment and working conditions in OECD countries, it would appear to result mainly from the domestic circumstances and economic policies of OECD countries themselves, and to a lesser extent from increasingly competitive intra-OECD trade. *{* BIAC presented these views to the OECD Liaison Committee with International Non-Governmental Organisations in its 1994 paper, " Linking Trade Standards with International Commerce. " The Conseil National du Patronat Français and the Fédération des Entreprises de Belgique submitted their own views to the OECD Secretary General on this subject.} 30. There is evidence to suggest that both trade and investment relations with Non-Member countries are having a positive effect on working conditions in those countries - without the threat of sanctions or the compulsion of international rules. 31. It would be difficult to define a set of international labour standards that would be acceptable to all countries and practical to implement, even among OECD Members. The ILO is the international body that for many years has been seized with the task of defining and promoting international labour standards. 32. On this issue BIAC believes there is not a sufficient tangible link with trade policy to merit WTO consideration, nor is the WTO the right forum. To ask the WTO to link labour standards with market access rights would cause considerable strain in the Organisation, for example in dispute settlement procedures, and dangerously undermine the WTO's ability to reduce protectionism by promoting structured co-operation in the world trading system. BIAC believes that the WTO should continue to focus on real, quantifiable restriction to trade and not what some countries deem to be shortcomings in other parties' domestic labour policies. 33. BIAC has generally supported the OECD's efforts to analyse this complex subject, and we hope the resulting study will be published and disseminated to promote better awareness and discussion of the issues. 34. *partie=titre Trade and Taxation: *partie=nil International business decisions can be significantly affected by national tax policies, particularly those involving transfer pricing. Nearly half of many countries' trade takes the form of intra-company transactions; as a result, multinational corporations are increasingly exposed to double/multiple taxation of income. For this reason, BIAC Members have taken an active interest in the OECD's current efforts to update its Transfer Pricing Guidelines for Multinational Enterprises and Tax Administrations. BIAC has consistently supported the continued recognition of the arms' length principle as the internationally-accepted standard in this field, and notes with satisfaction that the first chapters of the revised Guidelines, approved by the OECD Council in July, reaffirm the dominance of this principle. 35. BIAC supports the OECD's plan to establish a mechanism to monitor Member country compliance with the Guidelines, and has offered its recommendations regarding both the mechanism itself and the role that the private sector should play. BIAC asks the 1996 OECD Council Meeting at the Ministerial Level to give appropriate recognition to the completion of the Guidelines, to the development of the monitoring mechanism, and to the importance of private sector involvement in the monitoring process. 36. BIAC believes that the most effective way to prevent international double taxation would be to introduce binding arbitration systems, not only with respect to the increasing number of transfer pricing disputes, but more generally on all kinds of conflicts related to the interpretation or application of bilateral tax conventions. We understand that the OECD Committee on Fiscal Affairs has appointed a study group to investigate this subject. We wholeheartedly support this development and look forward to substantive proposals for eventual adoption in the OECD Model Tax Convention. 37. *partie=titre Bribery and Corruption: *partie=nil BIAC supports the objectives of the 1994 OECD Recommendation on Bribery in International Business Transactions and commends the ongoing OECD work to make this instrument more effective. We also support the efforts being made in the OECD on the elimination of the tax deductibility of illicit payments through the recent Council Recommendation and through work on the criminalization of the bribery of foreign public officials, accounting standards and improving transparency in procurement. Corrupt practices result in substantial economic and social costs both for companies and for countries in which illicit payments and extortion are frequently encountered. BIAC encourages the OECD to establish close liaison with the WTO in order to further the understanding of problems associated with bribery and extortion and to encourage acceptance of the principles of the 1994 and 1996 OECD Recommendations by countries that are not OECD Members In this regard, BIAC fully supports the revised ICC Report on Extortion and Bribery in International Business Transactions which includes recommendations to governments and international organisations and rules of business conduct to combat extortion and bribery. We suggest that the OECD draws upon this report in its efforts to address such practices. 38. *partie=titre Shipbuilding: *partie=nil BIAC has actively supported the long running negotiations which led to the Agreement Respecting Normal Competition Conditions in the Commercial Shipbuilding and Repair Industry being adopted, subject to ratification, by OECD Members and Korea. We note that ratification of this Agreement will, for the first time, establish fair competitive conditions in the shipbuilding market through a subsidies discipline; an injurious pricing instrument; and a binding dispute settlement procedure backed up by remedies and sanctions. Ratification will have long-term beneficial effects on the balance between supply and demand in the carriage of world seaborne trade. BIAC therefore welcomes the progress made towards ratification and considers it imperative that the Agreement, which will cover 80 percent of the world shipbuilding market, should enter into force by the target date of 15 July 1996. BIAC considers that other countries should also be encouraged to accede to the Agreement. *partie=titre Outreach *partie=nil 39. As an increasing number of non-OECD countries become significant players in specific economic sectors, the OECD's outreach programme of dialogue with non-Members is becoming an indispensable tool for strengthening policy coordination between countries within and beyond the OECD area. BIAC welcomes the OECD's continuing efforts to engage these countries in dialogue and to expand its membership as appropriate. 40. One of the principal arguments used against open trade and investment systems is that certain countries do not compete fairly. BIAC believes that dialogue with the countries concerned on how their policies compare with "best practice" standards is the best way to address this problem. Moreover, the possibility of participating in OECD activities and, ultimately, gaining Membership -- and the rigorous examinations leading to accession -- have proven to be powerful incentives for some countries of central and eastern Europe to bring their policies into line with OECD standards. We believe that this is a valuable force for positive change. Maintaining an open and flexible policy toward the consideration and admission of potential new OECD-Members is the most appropriate approach the Organisation can adopt in the context of rapid globalisation and the economic development which ensues. *{Conclusion} 41. The international business community represented by BIAC believes that the OECD has a major role to play in shaping a broad range of economic policies for the future. Through continuing analysis and dialogue with both Member and Non-Member countries, the Organisation must take the lead in promoting the structural reforms which are necessary for the long-term health of our economies. 42. In BIAC's view, OECD political leaders should strive to meet the challenge of globalisation by making our economies increasingly open and adaptable to the rigours of foreign competition. At the national level, the emphasis must continue to be placed on creating those conditions which will allow private enterprises of any size to profit and grow. At the international level, and despite many calls to the contrary, we firmly believe that the only path to greater efficiency, productivity and employment opportunities in our economies lies in further liberalisation of the world investment and trading system. 43. As we stated previously, it is clear that there are significant (and often legitimate) fears being expressed about the impact of globalisation on local communities. These concerns must be addressed if Member governments are to find the political will to prepare for increasing international competition. We believe the OECD should thus not only elaborate the potential benefits of its policy recommendations, but provide its Member governments with the intellectual support to respond to politically-sensitive concerns about the related adjustment costs. As the recognised voice of the private sector at the OECD, BIAC would welcome the opportunity to participate in this process.