ICC Briefing

1
Business and trade liberalisation The
ECIPE Launch Conference After the collapse A
new agenda for trade liberalization 7 November
2006, Brussels
2
ICC the world business organization
Promotes an open international trade and
investment system and the market
economy Establishes business stance on broad
issues of trade and investment policy Develops
voluntary rules used by companies all over the
world Founded in 1919 Groups thousands of
member companies and associations from 130
countries
3
ICC global business champion for the
multilateral trading system
Believes in the primacy of the multilateral
trading system Committed to the strengthening of
an effective rules-based and non-preferential
global trading regime Provided world business
input into GATT/WTO since 1946! Greeted with
extreme disappointment the suspension of the WTO
Doha Round
4
Prospects for restarting the Doha Round
Suspension of Round due to failure of political
will and leadership Resumption of negotiations
will require changes in entrenched
positions Window of opportunity between after US
mid-term elections and spring 2007 Find common
ground to restart negotiations as soon as
possible World business needs to keep pressure
on governments
5
Business support for the Round
Continue to urge an ambitious and timely
conclusion to the Round and an early resumption
of the negotiations Business representative
organizations have already done much to support
the Round almost to the point of exhaustion! A
year ago, at ICCs initiative, the CEOs of 64
global companies signed a letter to the editor of
the FT urging the conclusion of an ambitious
agreement
6
Business support for the Round

• Loss of a major opportunity to generate economic
  growth,
• create jobs and raise living standards
• Loss of progress already achieved in the
  negotiations,
• including
• elimination of agricultural export subsidies
• duty-free and quota-free LDC exports
• WTO agreement on trade facilitation
• Systemic risk, opening the door to likelihood of
• more preferential trade agreements
• more trade disputes
• a resurgence in protectionism

7
Delivering the goods is more than a numbers game
8
The costs of failure

• Downsides of preferential trade agreements
• costs and complications for companies
• detriment to further multilateral trade
  liberalization
• Loss of opportunity to negotiate effective
  mechanisms to ensure that preferential trade
  agreements conform to WTO disciplines
• Risk the balance between negotiating trade rules
• by consensus and WTO dispute settlement
• mechanism
• Risk of weakening effectiveness and authority of
• the WTO

9
Benefits of multilateral trading system

• Proven track record of generating global economic
  growth through expansion of world trade
  supporting development
• Insurance policy for rules-based
  non-discriminatory global trade, and against
  protectionist policies and measures
• Business does business but governments set the
  rules
• Consumers and business benefit from trade
  liberalization

10
Conclusions
World business will continue to support the
multilateral trading system for which there is
no substitute Governments are duty-bound to
maintain and strengthen system for future
generations ICC urges WTO members to - avoid
new protectionist measures - pursue unilateral
trade policy reform - seek fresh approaches to
resume Doha negotiations