*{World business priorities for the second ministerial conference of the world trade organization [http://www.iccwbo.org/home/trade_investment/world_business_priorities.asp]

Commission on International Trade and Investment Policy, May 1998

French version 

Introduction}

World business, as represented by ICC, 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 outpaces growth in world output - is an essential condition for the spread of job and wealth 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 from 18-20 May 1998 in Geneva, ICC has four key priorities which it believes should form the core of the discussions: 
ensuring the full and effective implementationof the Uruguay Round agreements; 
proceeding with the "built-in agenda" mandated by the Uruguay Round; 
carrying forward work in the new areas identified at the first Ministerial Conference of the WTO (Singapore, 9-13 December 1996); 
engaging in strategic discussions about how to achieve further trade liberalization and expand WTO disciplinesto address the integrated nature of the private enterprise approach to commercial transactions in the global marketplace. 

*partie=titre 1. Implementation of the Uruguay Round agreements *partie=nil

*partie=titre Implementation *partie=nil

ICC urges WTO member governments to ensure that WTO agreements are effectively implemented in full and on schedule.

*partie=titre Dispute settlement *partie=nil

ICC calls upon all WTO member governments to comply with the decisions of the WTO’s strengthened multilateral dispute settlement mechanism, the success of which is crucial to securely establishing the WTO’s credibility and authority. The new mechanism has worked well so far, and the number of cases brought before the Dispute Settlement Body is increasing. However, it is vital for all WTO members to refrain from unilateral sanctions against trading partners in violation of their WTO obligations and from measures involving the extraterritorial application of national laws.

*partie=titre 2. Proceeding with the "built-in agenda" *partie=nil

Further negotiations are required in a number of areas, some of which formed part of the Uruguay Round and others which were foreseen by the Singapore Ministerial Conference. ICC attaches special importance to the following issues:

*partie=titre Accession *partie=nil

ICC strongly supports the goal of a truly global membership for the WTO. At the same time, ICC must emphasize the overriding importance it attaches to upholding the multilateral system's basic principles, rules, rights, and obligations. While applicant countries should be permitted to phase in the implementation of WTO obligations over a period of time, determined on a case-by-case basis, all prospective members - whatever their size and importance - must formally pledge themselves to respect WTO principles and rules and make meaningful market opening commitments for goods and services. Furthermore, prospective members should commit themselves to curbing existing administrative practices amounting to non-tariff obstacles to trade, and should agree to refrain from introducing any further such practices of this kind.

*partie=titre Tariffs *partie=nil

ICC urges the WTO to give priority attention to ensuring that previous tariff-reduction agreements are fully respected. WTO members should also continue to pursue further tariff liberalization in the context of the built-in agenda such as work to expand participation in zero-for-zero and tariff harmonization agreements. In addition, WTO members explore new initiatives to further reduce or eliminate tariffs on a most-favoured-nation basis, in consultation with business in the relevant sectors. As demonstrated by the successful negotiation of the agreement on information technology products (March 1997), and the recent proposals for expanding its coverage (February 1998), ICC is of the view that further tariff reductions and eliminations can be pursued sectorally with the agreement of business in the relevant sectors, or in the context of a broader negotiation in order to allow for tradeoffs to be made.

*partie=titre Rules of origin *partie=nil

ICC is concerned by the slow pace at which work is proceeding in the World Customs Organization on the harmonization of non-preferential rules of origin. This is all the more damaging to international trade as the ever greater complexity of rules has led to an increasing number of disputes in which business is unfairly penalized. Non-preferential rules of origin must be simplified and harmonized to ensure that they do not create unnecessary obstacles to trade. These rules should be clear and predictable, and should be applied in an impartial, transparent, predictable and consistent manner. Based on an assessment of the current status of the work, ICC is concerned that the fundamental objective of formulating clear and predictable rules of origin is not being met in a number of important sectors. The administrative and technical obligations imposed on business to fulfil the requirements of the rules agreed to so far are likely to prove excessive and will probably hinder, rather than facilitate, trade in those sectors. Consideration should also be given to the simplification and harmonization of preferential rules of origin, which are becoming increasingly burdensome for business with the world-wide proliferation of preferential trading arrangements.

*partie=titre Services *partie=nil

ICC congratulates WTO governments on the successful conclusion of negotiations on basic telecommunications services (February 1997) and on financial services (December 1997). ICC urges all WTO members that have scheduled commitments to ratify these agreements at the earliest opportunity, and encourages WTO members and countries seeking to accede to the WTO to schedule meaningful market opening commitments in basic telecommunications and financial services. ICC recommends that completion of the disciplines on domestic regulation of professional services under the General Agreement on Trade in Services (GATS) be given higher priority by WTO members. Success in developing high-quality disciplines in this sector will establish a solid precedent for work in other service sectors. The principal goal of the negotiations on services generally, due to begin no later than 1 January 2000, should be to expand and improve the quality of commitments on market access and national treatment under the GATS. To maximize the prospects for further liberalization, ICC urges WTO members to launch the necessary reparatory work for these negotiations immediately.

*partie=titre Agriculture *partie=nil

Future negotiations on agriculture due to begin in 2000 should build on the results achieved in the Uruguay Round and aim to make greater progress in the reform of agricultural policies, with the goal of establishing a market-oriented agricultural trading system. Further reductions in agricultural support and protection are in the interest of developed and developing countries alike. ICC considers as essential improved market access on a most-favoured-nation basis for exports of developing  countries, and particularly, from the least developed among them. In pursuing these objectives, full regard should be paid to the importance of safeguarding the legitimate interests of producers, users and consumers of agricultural products.

*partie=titre Government procurement *partie=nil

The existing WTO Agreement on government procurement must be improved in terms of increased membership, broader sectoral coverage, as well as provisions to ensure greater transparency. ICC also believes that the liberalization of government procurement of services would open a vast potential market to international competition. ICC urges WTO members to begin negotiations at the earliest possible date on an interim agreement that would increase transparency, openness and due process in government procurement for all WTO members.

*partie=titre Developing countries *partie=nil

WTO members should explore further measures to inject concrete substance into the trade initiative for least-developed countries launched by the WTO, as a follow-up to the plan of action agreed to at Singapore, and to the High Level Meeting on the Integrated Initiatives for Least-Developed Countries' Trade Development of October 1997.

*partie=titre 3. Addressing the new areas *partie=nil

Work in the new areas identified at Singapore should be carried forward and be effectively integrated into the future multilateral agenda. The WTO’s framework of rules must keep pace with evolving business requirements and technological advances in the context of the increasing globalization of business and the marketplace.

ICC therefore urges WTO member countries to work together in the years ahead towards the objectives outlined below:

*partie=titre Regional agreements *partie=nil

WTO member governments should reaffirm the primacy of the multilateral trading system and of the WTO as its guardian. Regional trade agreements can constitute important stepping stones towards greater trade liberalization, provided that these agreements are consistent with multilateral obligations. Building on the work already accomplished by the WTO Committee on Regional Trade Agreements, clear rules, definitions and procedures should be developed to ensure the compatibility of regional trade agreements with WTO rules.

*partie=titre Trade and environment *partie=nil

ICC regrets the lack of concrete progress achieved in the WTO on trade and environment issues. Business is concerned by the potential threat to the multilateral trading system if measures are not taken to avoid conflicts in two areas of particular importance to business: a) the relationship between WTO rules and the use of trade measures pursuant to Multilateral Environmental Agreements, and b) the applicability of WTO rules to the trade-related provisions contained in the growing number of national and regional eco-labelling schemes. While these issues require priority attention, ICC also encourages further work on the other matters on the agenda of the WTO Committee on Trade and Environment.

*partie=titre Trade and investment *partie=nil

ICC strongly supports work under way in the WTO to examine the relationship between trade and investment, including existing international investment instruments (such as bilateral investment treaties and investment provisions in regional trade agreements). World business hopes that this work will pave the way for a truly global framework of rules and disciplines to govern cross-border direct investment. In this context, 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 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. 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 Trade and competition policy *partie=nil

CC urges the WTO working group established at Singapore to pursue its study of issues relating to the interaction between trade and competition policy, including anticompetitive practices, in order to identify any areas that may merit further consideration in the WTO framework. ICC is currently working on a report that will provide an international business perspective on competition and trade policy in the global arena in both the public and private sectors.

*partie=titre Simplification of trade procedures (trade facilitation) *partie=nil

ICC calls on WTO members to give focus to the WTO's mandate on the simplification of trade procedures by concentrating on customs procedures, and to provide the necessary political support to efforts currently underway at the World Customs Organization to produce a revised and strengthened Kyoto Convention (on the Simplification and Harmonization of Customs Procedures) in the form of a binding, enforceable and truly multilateral agreement. As follow-up to the WTO Symposium on Trade Facilitation of 9-10 March 1998, ICC also urges WTO governments to establish a WTO working group on the harmonization and simplification of customs procedures to: analyze the impact of customs-related barriers to trade on WTO commitments; assess the scope for enforcing a revised Kyoto Convention through the WTO dispute settlement mechanism; and to promote and coordinate the development and implementation of initiatives to simplify trade procedures.

*partie=titre 4. 50th Anniversary of the multilateral trading system *partie=nil

1998 marks the 50th anniversary of the operation of the multilateral trading system. ICC salutes the enormous contribution which that system has made to raising world living standards. On this occasion, ICC suggests that WTO member governments consider the future challenges for the WTO posed by an increasingly integrated global economy, and the role of the WTO in the governance of globalization. As the representative of world business, ICC looks forward to continuing to work closely with the WTO to assist it in its vital task of providing multilateral rules for the global marketplace aligned with new business realities and requirements.