ICC Chairman Victor Fung today sent an open letter to the ministers of trade of all member countries of the World Trade Organization (WTO), underlining the vital importance the ICC attaches to the success of the meeting on the Doha Round convened by WTO Director-General Pascal Lamy on 21 July.
The text of the letter is below.
An Open Letter to the Ministers of Trade Meeting in Geneva on 21 July
From Victor K. Fung, Chairman, International Chamber of Commerce
Dear Ministers,
The Director-General of the WTO, Pascal Lamy, has invited you to Geneva for what will be a defining moment for creating economic and political stability, building democracies, reducing poverty and contributing to an increased standard of living around the world.
As the recently elected Chairman of the International Chamber of Commerce (ICC), I am writing to say that there can be no underestimation of the importance of this meeting and to urge you to take the necessary steps to bring the Doha Round to a successful conclusion.
You will be shouldering an immense responsibility. The consequences of your decisions will have considerable impact on shaping the 21st century. Do we risk falling into the trap of protectionism and repeating the tragic mistakes of the past? Or will your courage and foresight in Geneva foreshadow a bright future of a global economy enjoying growth, a robust multilateral rules-based institutional framework, and tight bonds of collaboration between nations?
Next year will mark the 90th anniversary of the founding of the ICC in 1919, which adopted the motto, “world peace through world trade”. It is important to remember that the chaos into which the world plunged within just a few years was preceded by a crippling trade war.
While you must have your eyes focused on the text of the proposals before you, your minds must also be calibrated to reflections on the past, to challenges in the present and immediate future, and to the opportunities in the longer term. Hence the historic significance of this meeting and the importance of its outcome.
It is abundantly clear that the world economy is going to be facing severe turbulence. The high growth-low inflation of the past 15 or so years appears to be over, at least temporarily. We are facing a grave food crisis, high inflation, a credit squeeze, increasingly widespread social unrest and a series of highly daunting issues including international security, climate change and energy concerns. As Pascal Lamy challenged you in his memorandum published in the International Herald Tribune (“The moment of truth”, 3 July): “Do any of you seriously believe that an agreement on climate change, immigration or reform of international institutions would be likely in the aftermath of a Doha collapse?”
I totally share his perspective and so, I believe, do most business leaders. In order to seize the potentially extraordinary opportunities that this century could offer, there are two absolute conditions: (1) the world economy must continue to grow at a sustainable, healthy and inclusive rate; (2) global governance must be characterized by cooperation. While the successful conclusion of the Doha Round will not per se guarantee that these conditions will endure; the converse, namely that the failure of the Doha Round will jeopardize growth and undermine global cooperation, is irrefutable.
There exists a global reality that you must take into serious consideration. The radical market oriented reforms that most developing countries undertook in the early/mid nineties have unleashed powerful entrepreneurial forces and the rising aspirations of hundreds of millions of people to a better life, away from poverty. There has been considerable success, though much remains to be done. Should these aspirations not be met and should those who have arisen from poverty fall back into poverty – as the President of the World Bank, Robert Zoellick, has stated may be the case for 100 million people or more – the political consequences could be very grave. The developing world today counts 1.3 billion youth (out of a total of 1.5 billion) between the ages of 12 and 24. They will need jobs, they will need hope, and they will need a sense of engagement with society.
Another critical consideration is the fact that there are major new actors on the global trade scene, China and India in particular. History has taught us that whenever a major new actor has appeared on the scene, there has been disorder and often conflict. We must learn the lessons of the past. A solid multilateral rules-based institutional framework is all the more vital, as the impact of China and India’s entry will continue to be felt.
As Chairman, I can vouch for the fact that the ICC attaches enormous importance to the success of this meeting. Business favours its successful conclusion.
Ministers, we urge you to take bold and courageous steps.
For more information on the World Trade Organization and the Doha Round, please visit
www.wto.org
