Los Cabos G20 Business Summit

Leaders of the G20, convened in Los Cabos on 18-19 June 2012. Members from the ICC G20 CEO Advisory Group submitted policy recommendations prior to the meeting at the B20 Summit in Los Cabos, hosted by Mexican President Felipe Calderon. Key participants included: the ICC G20 CEO Advisory Group, Heads of State and the World Economic Forum (WEF). Alongside the Summit, ICC participated in a host of B20 media events.

Harold McGraw III at B20 Los Cabos Summit

ICC has delivered business priorities to G7, G8 and now G20 Summits since 1990, and beginning with the Seoul Summit has partnered with host-country organizations to produce business policy recommendations for consideration by the G20. This work is conducted collaboratively between ICC, the World Economic Forum and principal host-nation business associations so as to canvas broad business input into the policy development process.

Among ICC’s top policy priorities are trade and investment. ICC contends that especially at a time when governments are struggling with excessive debt, multilateral trade liberalization would create jobs and drive economic growth.

Agenda

While a successful conclusion of the Doha Round in its current form doesn’t seem likely, there are alternative approaches to making progress on the multilateral trade agenda that can spur growth, foster economic opportunities, and create much-needed jobs. Therefore, ICC called on the G20 to lead efforts to create a predictable and stable climate for global cross-border investment.

In its commitment to establish an ongoing policy dialogue between the G20 and global business ICC launched the ICC G20 Business Scorecard, a policy tool designed to gauge the G20’s response to business recommendations. The Scorecard was unveiled at a conference in Washington DC a week prior to the summit with US G20 Sherpa Michael Froman. It marked G20 performance as “incomplete” across the four policy areas evaluated: trade and investment, green growth, transparency and anti-corruption, and financing for growth and development.

ICC upholds that the G20 will more effectively set priorities, honor commitments, measure its own progress over time, and identify issues that deserve greater attention, if it is better informed on how its actions are interpreted by the business community. In parallel, global business should work more closely with the G20 to promote economic growth and job creation.

On trade and investment the Scorecard gives the G20 a score of “incomplete”, based primarily on its failure to help advance multilateral trade negotiations.

Participants

Los Cabos G20 business summit

The delegation was led by Gerard Worms, ICC Chairman, who was joint by Harold McGraw III, ICC Vice-Chairman and Chairman and CEO, The McGraw-Hill Companies; Victor K Fung, ICC Honorary Chairman and Chairman, Li & Fung Group; Marcus Wallenberg, ICC G20 CEO Advisory Group Chairman and Chairman, SEB.

Other CEOs in the delegation included: Kris Gopalkrishnan of Infosys, Eduardo Eurnekian of Corporacion America, Young Tae Kim of Daesung, Kimball Chen of Energy Transportation Group, Pierre Froidevaux of ICC Mexico, Paul Bulcke of Nestle, Antonio Brufau of Repsol, Martin Senn of Zurich Insurance Group, and Steen Riisgaard of Novozymes.

Outcomes

The 2012 Los Cabos Leaders Declaration was drafted at the end of the G20 Los Cabos Summit. Recognizing the far-reaching impact of G20 decisions, leaders welcomed the extensive outreach efforts undertaken by the Mexican presidency, including meeting with the Business-20 and thanked the group and others for contributing to the G20 agenda and its outcomes.

Key outcomes reported in the Leaders Declaration include:

  • G20 Leaders resolved to promote growth and jobs, while recognizing the vulnerability of the global economy and the challenges facing the global recovery including financial marketing tensions, external fiscal and financial imbalances and their impact on growth and employment.
  • Leaders vowed to work collectively to strengthen demand, restore confidence, support growth and foster financial stability in order to create high quality jobs and opportunities by using the Los Cabos Growth and Jobs Action Plan to achieve these goals.
  • Special attention was given to the Euro Area, where the G20 resolved to take necessary policy measures to safeguard the integrity and stability of the area, improve the functioning of financial markets and break the feedback loop between sovereigns and banks.
  • The implementation of structural and regulatory reform was stressed to enhance medium-term growth prospects and build more resilient financial systems.
  • Multilateralism was deemed the best asset to resolve global economic difficulties.
  • Leaders recognized the impact of the global economy crisis on developing and low income countries. Policy actions set forth by the G20 will improve living conditions across the globe by stabilizing global markets and promoting stronger growth, by creating a more conducive environment for development including supporting infrastructure investment.

Selected Quotes

"The G20’s expanding agenda increasingly bears upon core business goals for trade, economic growth and job creation. It’s our responsibility to ensure that the G20 takes into account global business priorities in their deliberations. As the everyday practitioners of the global economy, we need to make sure that the voice of world business is heard."

Gerard Worms, ICC Chairman

“Although the majority of issues tackled by the G20 are directly related to global business priorities, until the creation of G20 business summits, the G20 process had no formal means to solicit input from business leaders on its agenda and work. The G20 Business Summit is therefore a welcome opportunity and we are grateful to Mexican President Calderon for reaching out to business.”

Jean-Guy Carrier, ICC Secretary General

“The G20 should enhance capital markets so the world has the liquidity it needs to meet massive demands in infrastructure and corporate debt. The G20 should lead in protecting intellectual property rights. The current trend of ‘free content’ through piracy is nothing more than the digital age’s version of old-fashioned theft."

Harold McGraw III, ICC Vice-Chairman

“We call on G20 leaders to be attentive to business’s messages and to learn from companies’ experience of the practical consequences of regulation and policy decisions on the economy and on jobs. Business is especially concerned with the trend toward ‘over-regulation’. The financing of the economy is being restricted by higher bank funding costs, higher lending spreads and lower credit supply. All this is happening at a time when the world economy is most in need of productive investment."

Marcus Wallenburg, ICC G20 CEO Advisory
Group Chairman and SEB Chairman

“The purpose of the ICC G20 Scorecard is to generate a balanced and reliable measurement of the G20’s performance in response to business recommendations that have been put forward to G20 leaders. The Scorecard is a useful tool for business to monitor the G20’s progress on the international trade and investment policy agenda. If G20 leaders were to break the stalemate in WTO negotiations or to make progress towards a multilateral framework for investment, these advances would be reflected in a significantly higher score.”

Jean-Guy Carrier, ICC Secretary General

“The commitment and recommendations of the CEOs gathered in Los Cabos compel a mechanism to pursue the dialogue on an ongoing basis. ICC hopes that the G20 will recognize the value of creating a permanent role for world business at future G20 summits and in the policymaking process between summits.”

Gerard Worms, ICC Chairman

Press releases

B20 Mr Worms greets Korean President

Business bolstered by G20 progress in Los Cabos

The International Chamber of Commerce (ICC) is encouraged that business recommendations for boosting the global economy, including those aimed at unblocking trade negotiations, were taken into account... Read more

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ICC delivers global business priorities to G20, rates progress as incomplete

The International Chamber of Commerce (ICC) presented policy priorities on behalf of global business on the eve of this year’s Summit of G20 leaders in Los Cabos, Mexico. Read more

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ICC helps launch 2012 B20 Summit preparations

ICC yesterday took part in a meeting of Mexican officials from government and industry, kicking off preparations for the next B20 Business Summit, to be held in conjunction with the G20 Summit in Los... Read more