Business leaders see WTO accord on financial services as vital

Hong Kong, 22 September 1997 - Business leaders in Hong Kong for the annual International Monetary Fund/World Bank meeting today issued a call to governments to bring the negotiations in the World Trade Organization on liberalization of financial services to a successful conclusion by the 12 December deadline.

The appeal came from the International Chamber of Commerce and the Financial Leaders Group, together representing a broad segment of the financial services industry throughout the world. Their statement said: "The ICC and the FLG are convinced that the opening up of financial services will provide powerful impetus to growth in all economic sectors...Liberalization will be indispensable for the financial world of the future, considering the heavy demand for capital in an increasingly global economy."

In a related move, the chairmen, CEOs and senior representatives of 50 of the world's leading companies signed a letter published in the Financial Times conveying the same message. They said: "The liberalization of trade in goods and services will never achieve its fully potential if it is not accompanied by corresponding liberalisation of financial services."

The letter pointed out that without an agreement by the deadline, the existing interim accord would lapse. "We would then face the daunting prospect of beginning all over again in the year 2000. That would not only be a blow to business confidence but also a significant setback for the world economy."

ICC President Helmut O. Maucher, Chairman of Nestl, headed the list of signatories, together with the co-chairmen of the Financial leaders Group, Kenneth Whipple, President of Ford Financial Services and Andrew Buxton, Chairman of Barclays Bank plc.