World business says timing
right for launching new trade round
Paris, 28
June 1999 – The
International Chamber of Commerce today called on member governments of the
World Trade Organization to launch a new round of negotiations on trade liberalization
and said it should last no more than three years.
ICC, the world business
organization, said the timing was right for a decision on the new round to be
made at the forthcoming WTO ministerial conference in Seattle starting at the
end of November.
A successful round would
send a positive signal to traders and investors that governments are committed
not only to keeping markets open, but also to further reducing barriers to market
access.
A new broad-based round
would "make a significant contribution to restoring confidence in the prospects
for the recovery of the world economy in the wake of the emerging markets crisis,"
according to an ICC policy statement."
The ICC statement was drawn
up by its Commission on International Trade and Investment Policy, chaired by
Arthur Dunkel, former Director General of the General Agreement on Tariffs and
Trade, predecessor of the WTO.
ICC has thousands of member
companies and business associations in more than 130 countries. It is the only
representative body that speaks on behalf of enterprises from all sectors in
every part of the world.
The statement proposed that,
to avoid the delays that characterized the previous Uruguay Round, WTO member
governments set up interim deadlines and regular progress reviews by ministers
to ensure that a new round is concluded relatively quickly – that is, in
about three years.
"Multilateral rule-making
has to adapt itself to the faster pace of change in a global marketplace in
order to keep the rules aligned with rapidly-evolving business realities and
requirements."
ICC said commitments made
in the Uruguay Round and subsequent multilateral negotiations should be implemented
in full and on schedule. "Adherence to the letter and spirit of those agreements,
and the avoidance of unilateral and extraterritorial measures, are essential
foundations for the further liberalization of world trade in the context of
a new round."
"So also is strict
respect for the role and authority of the WTO’s dispute settlement machinery,
whose rules and procedures require clarification and pe
rhaps some improvement
in the light of recent experience." In a passage devoted to foreign direct
investment (FDI), ICC said it was now far too important for the well-being of
the world economy to be left under the sway of a multitude of overlapping instruments
"with the accompanying costs, confusion and potential for legal conflict."
"We urge governments
to seize the opportunity of the new round to push forward the process of creating
within the WTO high-standard multilateral rules to protect and liberalize foreign
investment." This would provide greater security to the enormous existing
stock of FDI and encourage its continued rapid expansion in a new era when countries
everywhere are keen to attract it.
ICC said the new round should
lead to more and stronger commitments under the General Agreement on Trade in
Services (GATS) established during the Uruguay Round, including basic telecommunications
and financial services where important progress had already been made.
Other areas in the services
sector where business looked for results included maritime transport, air cargo,
postal and express delivery, movement of business and professional personnel,
and the liberalization of government procurement.
On agricultural trade, ICC
said the new round must accelerate the process of reducing "substantial
protectionist barriers" impeding and distorting trade in agricultural products.
The business organization pointed out that these barriers had a particularly
injurious effect on the export capability of many developing countries.
ICC said the benefits of
trade liberalization were often frustrated by cumbersome trade procedures, and
in particular slow and bureaucratic customs procedures. "The new round
should develop comprehensive and effective multilateral rules to simplify and
modernize trade procedures – to the advantage, in particular, of developing
and transition economies."
World
business priorities for a new round of multilateral trade negociations
21 June 1999
World business priorities for a new round of multilateral trade negociations
(French version)
21 June 1999