*{Business and the Global Economy
ICC statement on behalf of world business to the Heads of State and Government attending the Birmingham summit, 
15-17 April 1998 [http://www.iccwbo.org/home/trade_investment/bge_english.asp]

French version 

Executive Summary

The International Chamber of Commerce (ICC), the world business organization, urges the Heads of State and Government attending the Birmingham Summit in May 1998 to devote special attention to four key issues of particular concern to world business.

1. Globalization and governance

ICC believes strongly that globalization is a powerful force for raising living standards across the world, and that governments and business must do much more to explain the benefits and opportunities that flow from globalization and a readiness to adapt to change.

Governments and business must also work more closely together to design the multilateral rules for the worldwide marketplace which will be increasingly necessary for the smooth functioning and good management of globalization.

As the representative body for world business, ICC urges the G7/G8 countries to encourage a more systematic dialogue between the principal intergovernmental bodies at the global level and the business community. Globalization is a business-driven phenomenon, and business is the natural partner of intergovernmental bodies to help them in agenda-building, decision-making, and implementation.

2. Business priorities for world trade

World business attaches the utmost importance to an open multilateral system that guarantees the free flow of goods, services and investment across borders. Growth in world trade and investment - which far outpasses growth in world output - is an essential condition for the spread of wealth and job creation throughout the world economy.

In the context of the second Ministerial Conference of the World Trade Organization (WTO) to be held immediately following the Birmingham Summit, ICC has four key priorities in the field of international trade policy:
to ensure that the agreements concluded in the Uruguay Round trade negotiations are implemented in full and on schedule; 
to advance work on the "built-in" agenda mandated by the Uruguay Round; 
to carry forward the additional work programme agreed at the WTO's first Ministerial Conference in Singapore in December 1996; and 
to engage in strategic discussions - in the 50th anniversary year of the multilateral trading system - about how to achieve further trade liberalization and address the new challenges to governments and business arising from an increasingly integrated global economy.

3. A global framework for investment

ICC was pleased with the decision taken by the first Ministerial Conference of the WTO to launch an examination of the relationship between trade and investment. We believe the WTO should aim to build a solid consensus within the WTO in favour of creating a truly global framework of rules and disciplines to govern cross-border investment.

Meanwhile, ICC has been closely following negotiations in the Organisation for Economic Co-operation and Development (OECD) of a Multilateral Agreement on Investment (MAI). ICC believes an MAI would create a more certain environment for foreign direct investment in industrialized countries by raising standards of investment liberalization, and of non-discrimination, protection, and dispute settlement for foreign investors, beyond those currently provided in existing bilateral and regional investment treaties. However, ICC is concerned about some proposals under discussion that would require certain environmental and labour standards. We believe that the negotiators should concentrate on the key objective of the MAI which is to increase the flows and benefits of foreign investment. Moreover, it is crucial that the text of the MAI attract as many non-OECD countries as possible and lead to an effective, truly multilateral agreement.

4. Electronic business

Rapid advances in communications and computer technologies have opened up a huge potential for improving economic efficiency through electronic commercial transactions, as well as creating the wider basis for a global Knowledge economy. However, the necessary legal and regulatory framework to enable business and consumers to take full advantage of these technologies is not yet in place.

The development of this framework requires a new partnership between business and governments, since each has distinct roles to play. Because of the fast-moving technology in this area, technical and regulatory standards and solutions should be primarily developed by the private sector. The essential role of governments is to establish a flexible and internationally consistent legislative and institutional framework which encourages business to develop standards and push forward with technological innovation.

Business and the global economy

The International Chamber of Commerce (ICC), the world business organization, is pleased to present this statement to the Heads of State and Government attending the Birmingham Summit (15-17 May 1998). The statement addresses four key issues of particular concern to world business, to which ICC urges the leaders of the Group of Seven/Eight (G7/G8) countries to devote special attention.}

*partie=titre 1. Globalization and governance *partie=nil

Since the Denver Summit in June last year, the world has witnessed a major financial crisis in East and South-East Asia. Fortunately, that crisis has not to date spread to other regions across the globe. And there is strong evidence that foreign direct investors retain their confidence in the economic fundamentals of East and South-East Asia and in the region's longer-term growth prospects. A recent survey of leading multinational companies, conducted jointly by ICC and the United Nations Conference on Trade and Development (UNCTAD) revealed that 88% of the companies polled intended either to maintain their existing plans for direct investment in the region or to increase their direct investments over the short to medium term.

It would be unfortunate if the Asian crisis contributed to a growing perception in the public mind that the process known as globalization is a threat rather than an opportunity. ICC believes strongly that globalization is a powerful force for raising living standards across the world. It has already brought unprecedented advances in material welfare to billions of people. Moreover, it is worthy of note that, as the ICC/UNCTAD survey showed, foreign direct investment is playing a significant role in contributing to the stabilization of the economies affected by the Asian currency crisis, and hence of the world economy.

ICC believes that governments and business must do much more to explain the benefits and opportunities that flow from globalization and a readiness to adapt to change. The fears and misconceptions that are growing around globalization must be dispelled.

Governments and business must also work more closely together, at national and international level, to design the multilateral rules for the worldwide marketplace which will be increasingly necessary for the smooth functioning and good management of globalization. The imminent arrival of a single currency for most of the EU member states is, for example, welcome aspect of globalization. The introduction of the Euro will require governments and central banks across the world, but particularly in the G7/G8 countries, to collaborate to ensure that this major development is handled efficiently and does not become a source of global financial volatility.

Like freedom, markets only work within an appropriate framework of laws, rules and institutions. And as markets go increasingly global, so the need is rapidly growing for more global rule-setting. And that means more global decision-making and leadership, particularly on the collective initiative of the countries represented at the Birmingham Summit.

Within this context, the adequacy of the United Nations (UN) system and other intergovernmental organizations has become an important issue for business. Intergovernmental organizations require sufficient resources and more authority to handle effectively the complex and often interrelated global problems that are emerging as the new millennium approaches. But the proviso must be that institutional reform tackle bureaucracy and the duplication of tasks and responsibilities. ICC welcomes the fact that reform has already begun, and urges further streamlining.

A more effective involvement of business in the activities of the UN system and other intergovernmental organizations must form part of the reform process. As the creator of wealth and jobs, business has a huge amount of experience and expertise to contribute to agenda-building, to substantive decision-making, and to implementation. Globalization is a business-driven phenomenon, and business is the natural partner of governments to help them in this task. As the representative body for world business, ICC urges the G7/G8 countries to encourage a closer and more systematic dialogue between the principal intergovernmental bodies at the global level and the business community. It would also be useful for the UN and other intergovernmental bodies to establish rules to clarify the legitimacy and accountability of many new non-governmental organizations engaged in the public policy dialogue which proclaim themselves to represent particular interests or significant sections of civil society.

*partie=titre 2. Business priorities for world trade *partie=nil

World business attaches the utmost importance to an open multilateral system that guarantees the free flow of goods, services and investment across borders. Against this background, ICC congratulates the G7 governments on the landmark agreement, concluded in the WTO since the Denver Summit, to liberalize trade in financial services.

Growth in world trade and investment - which far outpaces growth in world output - is an essential condition for the spread of wealth and job creation throughout the world economy. Unemployment and low growth cannot be cured by protectionism. One major lesson to be drawn from Asia's current financial crisis is the necessity to resist protectionist pressures and to keep markets open in order to restore much-needed confidence and stability.

In the context of the second Ministerial Conference of the World Trade Organization (WTO), to be held immediately following the Birmingham Summit, ICC has four key priorities in the field of international trade policy:

To ensure that the agreements concluded in the Uruguay Round trade negotiations are implemented in full and on schedule. 
To proceed with the "built-in agenda" mandated by the Uruguay Round. Here, ICC attaches special importance to: 
further reducing or eliminating tariffs, with the agreement of business in the relevant sectors; 
completing work on the harmonization of non-preferential rules of origin by July 1998 by producing impartial, transparent, predictable and consistent rules that do not create obstacles to trade; 
maximizing the prospects for further liberalization in services and agriculture by launching immediately necessary preparatory work for the negotiations due to begin by January 2000; 
beginning negotiations at the earliest possible date on an interim agreement that would increase, transparency, openness and due process in government procurement, including government procurement of services; and 
encouraging additional measures by the G7 countries to support the further integration of least-developed countries into the world trading system. 

To carry forward work in the new areas identified at the first Ministerial Conference of the WTO (Singapore, December 1996). ICC urges the G7 countries to work together and with the other WTO member countries in the years ahead to: 
reinforce the primacy of the multilateral trading system by ensuring that regional trading agreements are complementary to it and consistent with its rules; 
elaborate a truly global framework of rules to govern cross-border investment; 
make further progress within the WTO to avoid potential conflicts between trade and environment policies; 
advance their examination of how public and private practices relating to competition interact with trade policy; 
simplify, modernize and harmonize customs procedures which are the biggest remaining non-tariff barriers to trade, including a successful and timely completion of current G7 work on the simplification and standardization of customs data; and 
to refrain from unilateral sanctions against trading partners in violation of their WTO obligations and from measures involving the extraterritorial application of national laws. 

To engage in strategic discussions - in the 50th anniversary year of the multilateral trading system - about how to achieve further trade liberalization and address the new challenges to governments and business arising from an increasingly integrated global economy. 

*partie=titre 3. A global framework for investment *partie=nil

The conventional distinction between trade and investment no longer reflects business realities; presence in a local market is now frequently vital to be able to compete. Companies trade to invest and they invest to trade. Yet while the world has developed over the past half-century a comprehensive and uniform body of multilateral rules to govern international trade, cross-border investment remains subject to a patchwork of rules contained in many hundreds of bilateral investment treaties, other commercial accords and a few WTO agreements.

ICC urged the first Ministerial Conference of the WTO to aim to build a solid consensus for work to begin within the WTO to establish a truly global framework of rules and disciplines to govern cross-border direct investment. We were gratified that Ministers took a step in that direction by setting up a working group to examine the relationship between trade and investment - albeit without prejudging whether negotiations will be initiated in the future.

ICC has been closely following negotiations in the Organisation for Economic Co-operation and Development (OECD) of a Multilateral Agreement on Investment (MAI). ICC urges participating governments to set a firm date for the completion of the MAI negotiations. ICC believes an MAI would create a more certain environment for foreign direct investment in  industrialized countries by raising standards of investment liberalization, and of non-discrimination, protection, and dispute settlement for foreign investors, beyond those currently provided in existing bilateral and regional investment treaties. However, ICC is concerned about some proposals under discussion that would require certain environmental and labour standards. We believe that the negotiators should concentrate on the key objective of the MAI which is to increase the flows 
and benefits of foreign investment.

While the MAI can do much to liberalize investment further among OECD countries, there is an even greater challenge to address restrictions on investment outside the OECD area. ICC notes that several Asian countries have indicated a strong interest in early accession. Within the context of the re-establishment of financial stability in the region, the adherence to the disciplines of the MAI would be timely. It is crucial that the text of the MAI attract as many non-OECD countries as possible and lead to an effective, truly multilateral agreement.

*partie=titre 4. Electronic business: enabling the future *partie=nil

Rapid advances in communications and computer technologies have opened up a huge potential for improving economic efficiency through electronic commercial transactions, as well as creating the wider basis for a global knowledge economy. However, the necessary legal and regulatory framework to enable business and consumers to take full advantage of these technologies is not yet in place. 

The development of this framework requires a new partnership between business and governments, since each has distinct roles to play. Because of the fast-moving technology in this area, technical and regulatory standards and solutions should be primarily developed by the private sector. 

Numerous business groups are working to develop self-regulatory standards governing business transactions in cyberspace. As the global business organization representing all sectors, ICC is playing a leadership and umbrella role for these groups in preparing the basic rules of the road for electronic business. ICC has already created a basic framework of codes and best practice guidelines for ensuring trustworthy digital transactions, protection of privacy, and ethical advertising on the Internet.

The essential role of governments is to establish a flexible and internationally consistent legislative and institutional framework which encourages business to develop standards and push forward with technological innovation. Business particularly urges governments to:
remove obstacles to the expansion of electronic business embedded in existing laws and treaties; 
ensure the legal recognition of electronic transactions; and 
protect intellectual property rights in digital environments. 

In 1995, on the occasion of the G7 summit on the Global Information Infrastructure, ICC called on governments to acknowledge the leadership role of the private sector in providing impetus to rapid growth in the development of information infrastructure. Since then, governments have made laudable progress in removing obstacles to competition in the provision of basic telecommunications services and information technology equipment through the forum of the World Trade Organization. However, it is vital that they continue with their efforts to maintain the momentum towards greater competition in the information marketplace, where the convergence of computing, broadcasting and telecommunications is creating a broad new seamless sector of business.

*{The International Chamber of Commerce

The ICC is the world business organization. It is the only representative body that speaks with authority on behalf of enterprises from all sectors in every part of the world.

The ICC's purpose is to promote an open international trade and investment system and the market economy worldwide. It makes rules that govern the conduct of business across borders. It provides essential services, foremost among them the ICC International Court of Arbitration, the world's leading institution of its kind.

Within a year of the creation of the United Nations, the ICC was granted consultative status at the highest level with the UN and its specialized agencies. Today the ICC is the preferred partner of international and regional organizations whenever decisions have to be made on global issues of importance to business.

Business leaders and experts drawn from the ICC membership establish the business stance on broad issues of trade and investment policy as well as on vital technical or sectoral subjects. These include financial services, information technologies, telecommunications, marketing ethics, the environment, transportation, competition law and intellectual property, among others.

The ICC was founded in 1919 by a handful of far-sighted business leaders. Today it groups thousands of member companies and associations from over 130 countries. National committees in all major capitals coordinate with their membership to address the concerns of the business community and to put across to their governments the business views formulated by the ICC.}