Paris and New York, December 4, 2008 – Meeting in Paris, business federation heads from the G8 nations called for urgent measures by governments to correct “real dysfunctions” in the world financial system.  But they said the crisis did not call into question the basic assumptions of private sector-led growth, and they pressed for an immediate re-launch of WTO trade talks as a way to revive the global economy.

“We came to Paris to voice our common support for efforts to make the market economy work better, increase financial transparency and foster closer international cooperation,” said USCIB President and CEO Peter M. Robinson, who joined business leaders from North America, Europe and Japan in issuing a joint statement prior to a meeting with French President Nicolas Sarkozy.  “Where more clarification and regulation is needed, it must be smart regulation, and policy makers must avoid over-regulation at this delicate time for the global economy.”

In their statement, the business leaders stated that “the present crisis does not call into question the basic principles of the open market economy but calls for urgent responses mainly in technical and regulatory terms.”  They said the causes of the crisis were multiple, and included monetary policies leading to excessive liquidity, lack of regulation or inappropriate regulation, attempts to achieve high yields without an accurate assessment of risks and inadequate coordination of macro-economic policies.

“These are real dysfunctions which have had serious consequences and which in concrete terms call for a revision of the rules governing agents, products and operations on the financial open markets,” the statement said.  “On the other hand, these dysfunctions do not in any way cast doubt on the open market economy, which requires clear and shared rules to make private companies and entrepreneurs free to create, grow and innovate.  Businesses have today the talented people, technologies, and drive to succeed as before the crisis.  This is the cause for our optimism.”

The business chiefs welcomed pledges made by leaders at last month’s G20 Summit in Washington to avoid protectionist policies.  They echoed the G20’s call for efforts to restart the struggling Doha Round of trade talks as an immediate priority.  “The business community fully supports all of the efforts that will result in a prompt, ambitious and balanced conclusion to the Doha Development Agenda,” the statement said.  “This is necessary to ensure the world’s economic growth in the coming years.”

USCIB’s Mr. Robinson applauded the French business federation MEDEF for convening the business leaders, and for working rapidly and effectively to develop a consensus approach all parties could support without reservation.

The other participants in the G8 Business Summit were:

Fujio Mitarai, president of Nippon Keidanren (Japan)

Perrin Beatty, president of the Canadian Chamber of Commerce

Laurence Parisot, president of MEDEF (France)

Jürgen R. Thumann, president of BDI (Germany)

Emma Marcegaglia, president of Confindustria (Italy)

Alexander Shokhin, president of RSPP (Russia)

Martin Broughton, president of the Confederation of British Industry

Thomas J. Donohue, president of the U.S. Chamber of Commerce

Ernest-Antoine Seillière, president of BusinessEurope.

USCIB promotes an open system of global commerce in which business can flourish and contribute to economic growth, human welfare and protection of the environment.  Its membership includes more than 300 leading U.S. companies, professional services firms and associations whose combined annual revenues exceed $4 trillion.  As American affiliate of three global business groups – the International Chamber of Commerce, the International Organization of Employers, and the Business and Industry Advisory Committee to the OECD – USCIB provides business views to policy makers and regulatory authorities worldwide, and works to facilitate international trade.

Contact: Jonathan Huneke, VP Communications & Public Affairs, USCIB (212) 703-5043 or jhuneke@uscib.org

Statement From the G8 Business Summit Leaders (click here for summary)

Watch the press conference (MEDEF website, French/Japanese/English)

USCIB statement on the G20 Summit (November 2008)

More on USCIB’s Trade and Investment Committee

Washington, D.C., October 14, 2008 – On the heels of a landmark agreement by leading sovereign wealth funds (SWFs) to increase their transparency, representatives of major governments and SWFs gathered yesterday in Washington, D.C. to discuss ways to keep major markets open for investment from these increasingly important sources of capital.

At a forum organized by the United States Council for International Business (USCIB), senior officials from the U.S. Treasury and the 30-nation Organization for Economic Cooperation and Development (OECD) were joined by representatives of China’s leading SWF, Goldman Sachs and other leading experts.  Speakers emphasized the critical importance of maintaining market openness to all forms of investment, including from SWFs, as the world contends with the ongoing financial crisis.

“In these times of heightened uncertainty, it is imperative that we don’t turn inward, but rather embrace free investment and trade,” stated U.S. Deputy Treasury Secretary Robert Kimmitt.  “Allowing capital to flow freely is vital for economic growth and will enable healthy institutions to emerge from the current turmoil.  Without access to capital, the engines of economic growth seize up and risk the health of the broader economy.”

Amid a severe credit crunch, more and more companies and governments are turning to SWFs for much-needed capital.  SWFs have been in existence for decades, but their role and the number of funds has grown significantly in recent years, along with concerns about the management and intention of some funds.

The forum examined the International Working Group on Sovereign Wealth Funds’ recently released Generally Accepted Principles and Practices for sovereign wealth funds, as well as implementation of the OECD’s recommendations for keeping markets open to SWF investment.

Reflecting on efforts to address the financial crisis at the IMF/World Bank meetings over the weekend, OECD Secretary General Angel Gurría commented that IMF members were now “less of a cacophony, more of a choir.”  He said it was essential for countries seeking to benefit from investment by sovereign wealth funds to abide by fundamental OECD principles of openness and non-discrimination.

“We want to avoid the illegitimate use of national security to stop bona fide investments,” he said.  Mr. Gurría told the audience efforts by the IMF and OECD to develop rules and standards for SWFs and host governments had fostered confidence and removed suspicion about sovereign investment.

Other speakers at the USCIB forum included Daniel Sullivan, assistant secretary of state for economic and business affairs, Jesse Wang, executive vice president of the China Investment Corp., John Waldron, managing director at Goldman Sachs, and Edwin Truman of the Peterson Institute for International Economics.  Jerry Leamon, global managing partner with Deloitte, and Scott Miller, director of national government relations with Procter & Gamble and chair of USCIB’s Trade and Investment Committee, also participated.

The forum was co-sponsored by the Business and Industry Advisory Committee to the OECD, TransAtlantic Business Dialogue, National Foreign Trade Council, Emergency Committee for American Trade, National Association of Manufacturers, Financial Services Forum and Financial Services Roundtable.

USCIB promotes an open system of global commerce in which business can flourish and contribute to economic growth, human welfare and protection of the environment.  Its membership includes more than 300 U.S. companies, professional service firms and associations, whose combined annual revenues exceed $3.5 trillion.  As American affiliate of the leading international business and employers organizations, USCIB provides business views to policy makers and regulatory authorities worldwide and works to facilitate international trade.

Contact:

Jonathan Huneke, VP communications, USCIB

(212) 703-5043 or jhuneke@uscib.org

Remarks by Deputy Secretary Kimmitt

Generally Accepted Principles and Practices for Sovereign Wealth Funds

More on USCIB’s Trade and Investment Committee