Promoting trade and investment as engines of economic growth

Over the past 60 years, international trade and investment have contributed to improving the standard of living of billions of people around the world, by creating new economic opportunities for producers and consumers alike and by strengthening ties between nations, thereby contributing to global peace and prosperity and fostering greater freedom around the world. Companies and supply chains increasingly operate across multiple borders, and these activities can help to spread prosperity, technical know-how and capital, provided that they take place in a framework that is fair, transparent and rules based.

Cross-border investment is a vital driver of global economic growth and conveys benefits to businesses and home governments that frequently may be overlooked. Domestically, foreign direct investment links local companies to global value chains, underwrites trade and export opportunities, and facilitates the inflow of capital, technology, and skills. For multinational investors, it enables firms to establish a presence in global markets, particularly the fast growing markets of emerging countries. For many global companies, it is not unusual for 50-60% of their total sales and profits to be derived from foreign affiliates.

Overcoming obstacles in ongoing trade negotiations

The World Trade Organization (WTO) rules provide a transparent framework within which the businesses, which produce the goods and services that are traded around the world every day, can operate globally. The rules, however, are not perfect and after 11 years the WTO's multilateral trade negotiations are deadlocked.

Since global trade has dropped sharply and volumes are not expected to rise without restructuring multilateral trade negotiations, ICC is mobilising business to provide its recommendations for governments to address the urgency of declining trade, which has been further hampered by the shortage of trade finance and the rising threat of protectionism.

ICC Trade Publications

The ICC Open Markets Index

The ICC Research Foundation in 2011 commissioned the first ICC Open Markets Index, which shows in particular that G20 countries have not been leading the way in terms of lowering barriers to trade, despite commitments to roll back protectionist measures. G20 countries only ranked “average” out of 75 countries for their openness to trade according to findings of the Index.The Index’s results amplify the urgent need to get beyond the Doha Round stalemate and define a more flexible approach for advancing global trade liberalization and rule-making. But this will require greater leadership from the world’s largest economies, which need to set an example in terms of trade openness.

ICC Guidelines for Trade and Investment