BUSINESS FEDERATIONS NEWS
MARCH 2015 EDITION
CONTENTS
CONTENTS ..................................................................................................................................................................................................................... 2
BUSINESS FEDERATIONS NEWS - SUMMARY ............................................................................................................................................................. 3
Mar 24 - CBI: Driving political consensus for TTIP on both sides of the Atlantic ....................................................................................................... 3
Mar 24 - CCC: Win for business – Canada launches renminbi hub ............................................................................................................................ 3
Mar 18 - TÜSİAD and MEDEF presidents meet in Paris ............................................................................................................................................. 3
Mar 14 - BUSA: instability at major power provider could impact SA economy ....................................................................................................... 3
Mar 11 - BUSINESSEUROPE calls for effective one-stop-shop in data protection regulation ................................................................................... 3
Mar 11 - CBI: Intellectual property vital for investment and innovation .................................................................................................................. 3
Mar 11 - CEOE forecast: accelerated recovery for Spain ........................................................................................................................................... 3
Mar 04 - USC: the Trans-Pacific Partnership for trade............................................................................................................................................... 3
Mar 03 - CCC: Business must help fix free trade........................................................................................................................................................ 3
Mar 03 - BUSINESSEUROPE: global IP system - commitment to work together ....................................................................................................... 3
Mar 03 - CEOE: Cooperation of Spanish and Colombian SMEs: future of relations .................................................................................................. 3
Mar 03 - CONFINDUSTRIA business mission to Cairo: outcome ................................................................................................................................ 3
Feb 27 - CII - KEIDANREN joint press release on India-Japan Business Summit ........................................................................................................ 3
Feb 26 - USC statement on FCC’s net neutrality decision.......................................................................................................................................... 3
Feb 25 - BDI advocates uniform EU electricity market design................................................................................................................................... 3
Feb 25 - FKI: Korea, Czech Republic agree to strengthen cooperation ..................................................................................................................... 3
Feb 24 - UIA’s analysis of the Argentina and China cooperation agreement ............................................................................................................ 3
Feb 24 - BDI in TTIP discussions at Transatlantic Forum 2015................................................................................................................................... 3
Feb 10 - CNI: Brazil needs to ratify the BRICS bank urgently ..................................................................................................................................... 3
Feb 06 - MEDEF: French-African Forum – Editorial from Pierre Gattaz .................................................................................................................... 3
Feb 02 - AiG CEO survey - Business Prospects in 2015: Searching for Growth.......................................................................................................... 3
Feb 02 - CEOE and CII sign MoU................................................................................................................................................................................. 3
Feb 01 - BDI presents its "Digital Agenda" ................................................................................................................................................................. 3
PEOPLE WATCH............................................................................................................................................................................................................. 4
Huh Chang-soo: re-elected FKI Chairman for third term ........................................................................................................................................... 4
Cansen Başaran-Symes: new leader of TÜSİAD ......................................................................................................................................................... 4
Juan Rosell: re-elected president of CEOE for second term ...................................................................................................................................... 4
Khanyisile Kweyama: new head of BUSA ................................................................................................................................................................... 4
Ulrich Grillo: re-elected BDI president ....................................................................................................................................................................... 4
Hugh Aitken: new CBI Scotland director .................................................................................................................................................................... 4
B20 / G20 NEWS - SUMMARY ..................................................................................................................................................................................... 5
Mar 06 - B20 SMEs and Entrepreneurship Taskforce meeting .................................................................................................................................. 5
Mar 06 - Fifth G20-OECD annual high-level conference on anticorruption .............................................................................................................. 5
Feb 12 - G20 Finance Ministers and Central Bank Governors meeting - Communiqué ............................................................................................ 5
EVENTS .......................................................................................................................................................................................................................... 5
BUSINESS FEDERATIONS NEWS - FULL STORIES ............................................................................................................................................................ 6
B20 / G20 NEWS - FULL STORIES.................................................................................................................................................................................. 21
BUSINESS FEDERATIONS NEWS - MARCH 2015 EDITION - 2
BUSINESS FEDERATIONS NEWS - SUMMARY
Mar 24 - CBI: Driving political consensus
for TTIP on both sides of the Atlantic
CBI boss gives five reasons why TTIP is
important and why failure to take it
forward puts UK and Europe in jeopardy.
Mar 24 - CCC: Win for business – Canada
launches renminbi hub
The trading hub for China’s currency will
boost Canadian trade and exports, and
reduce import and foreign exchange
costs.
Mar 18 - TÜSİAD and MEDEF presidents
meet in Paris
TÜSİAD representatives joined their
MEDEF counterparts at a meeting to
discuss investment in Turkey.
Mar 14 - BUSA: instability at major
power provider could impact SA
economy
BUSA described the power utility Eskom
as critical to the competitiveness of the
economy.
Mar 11 - BUSINESSEUROPE calls for
effective
one-stop-shop
in
data
protection regulation
BUSINESSEUROPE says that without a
meaningful one-stop-shop, the data
protection regulation will lose the benefit
it could bring to EU companies.
Mar 11 - CBI: Intellectual property vital
for investment and innovation
CBI says IP has never been so important
and will continue to act as the hinge that
will keep Britain open for business.
Mar 11 - CEOE forecast: accelerated
recovery for Spain
CEOE forecasts GDP growth of 2.8
percent in 2015 and believes that a
similar trend could continue in 2016.
Mar 04 - USC: the Trans-Pacific
Partnership for trade
The TPP is America’s best chance to
secure a level playing field for trade in
the Asia-Pacific region.
Mar 03 - CCC: Business must help fix free
trade
CCC’s Perrin Beatty and Cam Vidler give
an overview of the history and reality of
today’s global free markets.
Mar 03 - BUSINESSEUROPE: global IP
system - commitment to work together
Businesses and intellectual property
offices took stock of on-going
cooperation projects at their annual
meeting in Yokohama.
Mar 03 - CEOE: Cooperation of Spanish
and Colombian SMEs: future of relations
The president of CEOE stressed that the
cooperation of Spanish and Colombian
SMEs represents the future of their
bilateral relations.
Mar 03 - CONFINDUSTRIA business
mission to Cairo: outcome
The CONFINDUSTRIA Business Mission to
Egypt enabled participating companies to
explore opportunities for collaboration
and investment.
Feb 27 - CII - KEIDANREN joint press
release on India-Japan Business Summit
The "India-Japan Business Summit" was
attended by about 100 industry
representatives from both countries.
Feb 26 - USC statement on FCC’s net
neutrality decision
The USC strongly opposed the FCC’s
decision to impose burdensome, archaic
Title II regulations on broadband.
Feb 25 - BDI advocates uniform EU
electricity market design
BDI Director Markus Kerber praises the
European Energy Union and asks that
words quickly turn into deeds.
Feb 25 - FKI: Korea, Czech Republic agree
to strengthen cooperation
Korea and the Czech Republic have
agreed to enhance economic cooperation
by taking advantage of the Korea-EU FTA.
Feb 24 - UIA’s analysis of the Argentina
and China cooperation agreement
The UIA reaffirmed its analysis of the
trade agreement between the Argentine
government and China.
Feb 24 - BDI in TTIP discussions at
Transatlantic Forum 2015
At the Transatlantic Economic Forum
2015, BDI, DIHK and GCIC commented on
TTIP, which in their view had outstanding
importance for transatlantic trade.
Feb 10 - CNI: Brazil needs to ratify the
BRICS bank urgently
The CNI President said that it was
essential that the BRICS governments
accelerate the process of ratification and
implementation of the agreement
establishing the new BRICS Development
Bank.
Feb 06 - MEDEF: French-African Forum –
Editorial from Pierre Gattaz
France is at a turning point in its
economic relations with Africa, and the
French-African Forum for Shared Growth
provides African and French investors
with a fresh opportunity.
Feb 02 - AiG CEO survey - Business
Prospects in 2015: Searching for Growth
AiG’s survey was conducted in late 2014
and
involved
352
CEOs
from
manufacturing, construction, services and
mining services.
Feb 02 - CEOE and CII sign MoU
CEOE and CII have signed a memorandum
to promote bilateral investments.
Feb 01 - BDI presents its "Digital
Agenda"
BDI’s ‘Digital Agenda’ document looks at
the Digital Economy and the alteration of
existing value chains and gives
recommendations
to
policy-makers
seeking new business models.
.
BUSINESS FEDERATIONS NEWS - MARCH 2015 EDITION - 3
PEOPLE WATCH
Huh Chang-soo: re-elected FKI Chairman
for third term
Cansen Başaran-Symes: new leader of
TÜSİAD
Juan Rosell: re-elected president of CEOE
for second term
GS Chairman Huh Chang-soo has been reelected as the 35th chairman of the
Federation of Korean Industries (FKI).
Turkish
Industry
and
Business
Association’s (TÜSİAD) newly elected
president,
Cansen
Başaran-Symes,
replaces out-going president, Haluk
Dinçer, who led the organization since
June 10, 2014.
Juan Rosell Lastortras has been re-elected
president of Confederación Española de
Organizaciones Empresariales (CEOE) for
another term of four years by the General
Assembly Electoral Confederation in
Madrid.
The FKI plans to expand the number of its
membership to 50 from 30 in order to
increase its influence on government
policies.
She is an accomplished and experienced
business leader who has held a series of
key roles in her successful career. She is
the recipient of a number of prestigious
awards, including the WEF’s “Global
leader of tomorrow” in 2000.
He will preside until 2018 when he will
have completed two terms, the maximum
allowed. Mr Rosell has served on the
boards of many high ranking companies
and brings with him a wealth of
experience and expertise in many fields.
Khanyisile Kweyama: new head of BUSA
Ulrich Grillo: re-elected BDI president
Hugh Aitken: new CBI Scotland director
Khanyisile Kweyama is the newly
appointed chief executive of Business
Unity South Africa (BUSA), the
organization that represents the interests
of the country's business community.
Kweyama is currently the executive
director of Anglo American South Africa.
Anglo has agreed to second her to BUSA
for a two-year term with effect from
January 2, 2015.
The General Assembly of the Federation
of German Industries (BDI) has
unanimously re-elected Ulrich Grillo for
another two years as president. On
January 01, 2015, Ulrich Grillo began his
second term as BDI president, an office he
first assumed on January 01, 2013.
The Confederation of British Industry (CBI)
has announced that Hugh Aitken has been
appointed as its new Scotland Director.
Huh, whose two-year tenure expired on
February 10, assumed his third term since
2011.
She believes that, given the right
conditions, businesses in South Africa
could help investments grow, create jobs,
and deliver the economic lift needed for
the country.
Mr Grillo has a degree in Business
Administration and has experience in a
number of fields including banking,
management consulting and heavy
industry and is an active member of
various supervisory boards and boards of
advisors.
He will run the CBI’s Scotland office and
represent the organization’s Scottish
members with government and policy
makers.
Hugh joins the organization after a broad
national and international business career
spanning three decades.
BUSINESS FEDERATIONS NEWS - MARCH 2015 EDITION - 4
B20 / G20 NEWS - SUMMARY
Mar 06 - B20 SMEs and Entrepreneurship
Taskforce meeting
The kickoff meeting of the B20 SMEs &
Entrepreneurship Taskforce on March 6,
2015 hosted more than 90 international
and local representatives.
Mar 06 - Fifth G20-OECD annual highlevel conference on anticorruption
The Fifth G20-OECD Annual High-Level
Conference on Anticorruption was
attended by the members of G20
Anticorruption Working Group, business
representatives
and
international
organizations.
Feb 12 - G20 Finance Ministers and
Central Bank Governors meeting Communiqué
The key points from the final
communiqué of the G20 Finance
Ministers and Central Bank Governors'
Meeting held in Istanbul February 09-10,
2015.
April 06, 2015
B20 Regional Consultation
Meeting
India
April 08, 2015
G20-B20 Inclusive Business
Workshop
Turkey
April 08, 2015
B20 Regional Consultation
Meeting
China
April 09-10, 2015
G20 II Development Working
Group Meeting
Turkey
April 10, 2015
B20 Regional Consultation
Meeting SE Asia
Singapore
April 10, 2015
London: Digital Economy
Conference - MIT and the
Digital Economy: The Second
Machine Age
London, UK
April 12-13, 2015
World Bank Global
Parliamentary Conference
Washington DC, USA
April 14-17, 2015
IISES Rome 3rd Economics &
Finance Conference
Rome, Italy
April 16, 2015
B20 Coalition Anniversary
April 16-17, 2015
B20 Joint Task Force Meeting
IMF/ World Bank
Washington DC, USA
April 17, 2015
G20 Plenary Session
Washington DC, USA
April 17-19, 2015
IMF and World Bank Spring
Meetings
Washington DC, USA
April 19-21, 2015
World Economic Forum on
East Asia 2015
Jakarta, Indonesia
April 22-23, 2015
World Green Economy Summit
2015
Dubai, UAE
BUSINESS FEDERATIONS NEWS - MARCH 2015 EDITION - 5
PHOTOS COURTESY: THINKSTOCK
EVENTS
BUSINESS FEDERATIONS NEWS - FULL STORIES
Mar 24 - CBI: Driving political consensus
for TTIP on both sides of the Atlantic
ambitious trade and investment deal without delay, aiming for political consensus by the
end of 2015.
This is the same message I delivered on this side of the Atlantic just before Christmas at our
roundtable event where we were joined by seven EU Prime Ministers!
Why is delivering TTIP important for businesses and consumers in the UK?
As well as being an important part of the UK’s reform agenda in the EU, the UK has a long
trading history with the US that has the potential to be cemented further to add at least
GBP 10 billion extra to the UK economy each year. Further to this, there are really five top
reasons to support TTIP.
First, small and mid-sized companies stand to benefit the most. For every customer in the
UK, there will be five more in the US to sell to. Small and medium-sized businesses are
disproportionately affected by trade barriers, given they often lack the time, budget, inhouse legal and supply chain experts to deal with red tape. Improving ‘speed to market’ will
be critical for our high growth industries in their quest to export more.
This week, John Cridland is in Washington
DC to drive forward the Confederation of
British Industry’s (CBI) TTIP agenda,
putting emphasis on political momentum
to secure the ground-breaking trade and
investment deal as soon as possible.
With the ninth round of negotiations on
the Trans-Atlantic Trade & Investment
Partnership (TTIP) just around the corner, I
am in Washington DC this week to
emphasize the UK business community’s
position on just how important agreeing –
and delivering – a deal is.
From a US investment summit, meeting
with senior US government officials at the
White House, through to a Congressional
roundtable with US Ambassador to the
UK, Matthew Barzun, my message this
week will be clear: we must do everything
we can to deliver a substantial and
Second, TTIP will mean more choice along with lower prices for consumers. Eradicating
tariffs like import duties will bring prices down for both businesses and their consumers –
this could make things like jeans GBP 5 to GBP 10 cheaper for shoppers. Our own export
industries would thrive too – removing the 20-30 percent US import duties for UK clothing
brands would allow more of our top labels to make it onto the shelves of stores across the
US.
Thirdly, the biggest economic gains will come from tackling red tape like duplicate
regulation and excessive paperwork at customs. As much as 80 percent of the economic
benefit from TTIP is set to come from removing non-tariff barriers.
Fourthly, it will play to the UK’s strengths grabbing a bigger footprint for our world-leading
services. From our engineering consultants to our specialist insurers, TTIP will allow our
services economy to increase their already strong exports and will support the next wave of
exciting, growing UK services companies exporting to and investing in the US.
This, which brings me to reason number five, creates jobs at home too. An EU-US trade deal
can help ensure that the UK remains the global number one location for American investors.
One million people are currently employed at American companies in the UK, and with TTIP
providing yet another reason to invest in the UK this is only set to increase.
We mustn’t lose momentum on this critical agenda – failure to make clear steps forward
over the next six months risks putting opportunities for the UK and the rest of Europe in
jeopardy. We have too much to gain to let this happen.
Source: CBI
Mar 24 - CCC: Win for business – Canada
launches renminbi hub
Finance Minister Joe Oliver and China's Ambassador Luo Zhaohui officially inaugurated the
opening of Canada's Renminbi Trading Hub on March 24.
This is a win for Canadian business because it lowers the cost of doing business with China
and will be a significant boost to trade.
The Canadian Chamber of Commerce
(CCC) applauds the launch of the first
trading hub for China's currency in the
Americas.
Many Chinese companies prefer doing business in renminbi and are willing to offer buyer
discounts. Businesses can also save on foreign exchange costs by converting directly from
Canadian dollars to renminbi, without the intermediary step of converting into US Dollars.
Source: CCC
BUSINESS FEDERATIONS NEWS - MARCH 2015 EDITION - 6
PHOTOS COURTESY: THINKSTOCK
We estimate the hub could increase Canada’s exports to China by as much as USD 32 billion
over the next decade, while cutting Canadian importers’ costs by as much as USD 2.75
billion.
Mar 18 - TÜSİAD and MEDEF presidents
meet in Paris
was attended by about 30 companies’ representatives.
The meeting organized by MEDEF/ MEDEF International and TÜSİAD, held in the context of
the ongoing co-operation between both countries for over 25 years, encompassed many
current topics: Turkey's economic situation, the Commonwealth of Independent States of
Turkish companies (CIS), the Middle and Near East, initiatives in neighboring markets in
Africa and the Balkans and the development of the business environment. In this latter area,
there was an exchange of views on the expectations of the Turkish private sector.
Among other topics discussed with the French companies, Ms Başaran-Symes shared her
views of Turkey's European Union integration process and spoke about the 2015 G20/ B20
summits, under the Turkish chairmanship, which will be held in her country later in the year
- TÜSİAD being instrumental in their organization.
Turkish Industry and Business Association
(TÜSİAD) Chairman Cansen Başaran-Symes
was the guest of honor at a conference in
Paris organized by French Business
Federation (MEDEF) International. Ms
Başaran-Symes and TÜSİAD members also
had a meeting with Pierre Gattaz
President of MEDEF.
TÜSİAD representatives joined their
MEDEF counterparts in France at a
meeting to discuss investment in Turkey. It
Source: TÜSİAD
Mar 14 - BUSA: instability at major power
provider could impact SA economy
said they were apprehensive that the commissioning of an independent inquiry could lead
to the proliferation of parallel interventions aimed at achieving the same objectives.
According to a report, the Business Unity
South Africa (BUSA) has said that it is
concerned about the prospect of further
instability at power utility Eskom which it
described
as
critical
to
the
competitiveness of the economy.
BUSA said that the challenges at Eskom were generally known and it was not clear what an
independent inquiry would deliver that was not already known, adding, that interventions
such as the War Room under the leadership of the Deputy President (Cyril Ramaphosa) and
the Business Energy Task Team were established precisely to address these challenges.
Source: IOL Business Report
PHOTOS COURTESY: TÜSİAD & THINKSTOCK
BUSA said in a statement that they
acknowledge that the current challenges
faced by Eskom require expeditious and
innovative interventions; however, they
On March 12, Eskom announced the suspension of four of its executives including its CEO
and CFO and commissioned an independent inquiry into the status of the business and its
challenges.
BUSINESS FEDERATIONS NEWS - MARCH 2015 EDITION - 7
Mar 11 - BUSINESSEUROPE calls for effective one-stop-shop in data protection regulation
On March 12, Justice Ministers discussed the proposed data protection regulation. Data are a
driver for growth in the digital economy. At the dawn of the digital single market strategy- to
be soon released by the Commission - businesses need a framework ensuring a balanced
approach to data protection.
The proposal includes the establishment of a 'one-stop-shop' allowing businesses to have to
deal with one single supervisory authority, and making it easier and more efficient for citizens
to get their personal data protected. Without a meaningful one-stop-shop, the data
protection regulation will lose the benefit it could bring to European Union (EU) companies.
BUSINESSEUROPE Director General Markus J. Beyrer commented:
“The creation of the one-stop-shop is the core of the data protection proposal and it is a key
element of the digital single market. It must be preserved in its original formulation. An
effective one-stop-shop means one decision, one outcome. If several data protection
authorities are involved in taking decisions, it would mean lengthy procedures and lack of
legal certainty for both companies and citizens.”
“We are confident that the Latvian
Presidency and the Council will be up to
deliver the right conditions to enable the
EU digital economy to flourish.”
Source: BUSINESSEUROPE
Mar 11 - CBI: Intellectual property vital for investment and innovation
It's an acronym that might be thought to only excite lawyers, but the importance of IP
(intellectual property) to the economy cannot be understated. If we want a business
environment that promotes trade and investment, it’s crucial that we’re seen as a global
leader in this area.
Thankfully, the UK has many strengths. We have world-class universities producing highquality research, coupled with innovative companies creating new products and services to
meet customers’ demands. And as the respected Global IP Centre (GIPC) Index report
confirms, we also do a good job of making sure these ideas are protected. The UK is ranked
second only to the US in providing businesses with a strong IP environment. This assists
research & development (R&D) and drives foreign direct investment.
This matters, particularly at a time when exports need strengthening. GIPC research finds that
“companies in economies with advanced IP systems are 40 percent more likely to invest in
R&D”. And countries with robust IP environments yield 50 percent more innovative output
than those judged to be requiring improvement.
The correlations do not end there. Countries with strong IP protections also employ high
numbers of people in knowledge-intensive industries, such as pharmaceuticals.
But although there are reasons to be positive about the state of our IP system, we cannot be
complacent.
While the Confederation of British Industry (CBI) is not commenting on the government’s
public health agenda regarding smoking, we have concerns about the impact of introducing a
plain packaging policy for cigarettes on the UK’s global reputation for IP. Customers identify
with brands, so companies are understandably uneasy at the prospect of a key part of their
identity being undermined. There is therefore a sound business case for voting against the
proposals in Parliament.
Further, to give our companies the best
chance of success on a global scale, the
next government should support
enhanced enforcement of IP protections
in other economies. This is not a call for
greater bureaucracy, but a necessary
step to safeguard the hard-won financial
well-being of UK companies, protecting
jobs and growth. This is especially
important given our burgeoning trade
relations in emerging economies such as
Indonesia, Brazil, and India, which have
low GIPC scores. To make progress,
through diplomacy, the government
should
become
a
high-profile
international champion for IP.
The government must use its clout in the
European Union (EU) and in foreign
markets to support the growth of the
UK’s global creative footprint and protect
the IP rights on which the creative
industries rely. While defending two
letters may seem amiss to the legal
laypeople among us, IP has never been
so important and will continue to act as
the hinge that will keep Britain open for
business.
An internationally-competitive innovation ecosystem lies at the heart of a vibrant, modern
economy. But overall investment in Britain still falls short of our rivals, such as France and
Germany. That’s why we need a long-term commitment by the government to achieve a
higher level of R&D funding, putting us back among the world’s leading innovative nations. It
should also strengthen the powerful incentive offered by the R&D tax credit to encourage
greater commercialization of ideas. Alongside this, the Patent Box should help to fortify the
UK’s attractive position.
Source: CBI
BUSINESS FEDERATIONS NEWS - MARCH 2015 EDITION - 8
PHOTOS COURTESY: THINKSTOCK
Elsewhere, imminent moves to revise European copyright rules may present as many risks as
opportunities for our creative firms. Imposing pan-European licensing, and mandating
content availability in all markets, would cause extensive financial disruption, uncertainty,
and set a dangerous precedent by telling private businesses which markets they must pursue.
Instead, solutions must be customer-led, practical and allowed to develop sustainably.
Mar 11 - CEOE forecast: accelerated recovery for Spain
A more favorable economic climate for Spain has led the Confederation of Employers and
Industries of Spain (CEOE) to make an upward revision of potential GDP for 2015. Domestic
demand during the first quarter improved by 0.8 - 0.9 percent and the foreign sector has
reduced its negative contribution to GDP thanks to increased exports, depreciation of the
Euro and the eurozone recovery. As a result, CEOE forecasts GDP growth of 2.8 percent in
2015 and believes that a similar trend could continue in 2016.
Source: CEOE
How can America seize more of the benefits of Free Trade Agreements (FTAs)? The good
news is that the United States is taking part in several major trade negotiations, including the
Trans-Pacific Partnership (TPP) with 11 countries in Asia and the Americas.
The booming Asia-Pacific region is a logical focus for America’s trade negotiators. Over the
last two decades, the region’s middle class grew by 2 billion people, and its spending power is
greater than ever. That number is expected to rise by another 1.2 billion by 2020. According
to the International Monetary Fund, the world economy will grow by more than USD 20
trillion over the next five years, and nearly half of that growth will be in Asia.
US workers, farmers and businesses need access to those lucrative markets if they are to
share in this dramatic growth. However, US companies are falling behind in the Asia-Pacific.
While US exports to the Asia-Pacific market steadily increased from 2000 to 2010, America’s
share of the region’s imports declined by about 43 percent, according to the think tank Third
Way. In fact, excluding China, East Asia in 2014 purchased a smaller share of US exports in
2014 than it did five years earlier, despite a 54 percent increase in total US merchandise
exports in that period
One reason US companies have lost market share in the Asia-Pacific region is that some
countries maintain steep barriers against US exports. A typical Southeast Asian country
imposes tariffs that are five times higher than the US average while its duties on agricultural
products often soar into the triple digits. In addition, a web of nontariff and regulatory
barriers block market access in many countries.
FTAs are crafted to overcome these barriers. However, Asia-Pacific nations are clinching trade
deals among themselves that threaten to leave the United States on the outside looking in.
The number of FTAs between Asian countries surged from three in 2000 to more than 50
today. Some 80 more are in the pipeline. Meanwhile, the United States has just three trade
agreements in Asia (with Australia, Singapore and South Korea). This challenge is growing: 16
countries are launching expedited negotiations for a trade deal called the Regional
Comprehensive Economic Partnership (RCEP). It includes Australia, China, India, Japan, Korea
and New Zealand — as well as the 10 ASEAN countries — but not the United States.
Canada, Mexico, Peru and Chile, thus
offering a chance to integrate existing US
trade agreements in the Americas.
The TPP must be a comprehensive
agreement. Whenever one party in a
trade talk excludes a given commodity or
sector from an agreement, others follow
suit, limiting its reach. For the United
States to achieve the goal of a true 21st
century agreement — with state-of-theart rules on digital trade, state-owned
enterprises, investment and other key
areas — its negotiators must hold fast to
the goal of a comprehensive accord.
One top US priority is to ensure the TPP
protects intellectual property (IP), which
plays a vital role in driving economic
growth, jobs and competitiveness.
According to the US Department of
Commerce, IP-intensive
companies
account for more than USD 5 trillion of
US GDP, drive 60 percent of US exports
and support 40 million American jobs. To
build on these strengths, the TPP must
include robust IP protection and
enforcement provisions that build on the
US-Korea Free Trade Agreement and
provide 12 years of data protection for
biologics consistent with US law.
Completing the TPP would pay huge
dividends for the United States. The
agreement would significantly improve
US companies’ access to the Asia-Pacific
region, which is projected to import
nearly USD 10 trillion worth of goods in
2020.A study by the Peterson Institute
for International Economics estimates
the trade agreement could boost US
exports by USD 124 billion by 2025.
The TPP has the potential to strengthen
our nation’s commercial, strategic and
geopolitical ties across one of the fastest
growing and most influential parts of the
world. It would be an economic shot in
the arm, boosting growth and jobs across
the country.
The TPP is America’s best chance to secure a level playing field for trade in the Asia-Pacific
region. Its objective is to achieve a comprehensive, high-standard and commercially
meaningful trade and investment agreement with 11 other Asia-Pacific nations, including
Australia, Brunei, Japan, Malaysia, New Zealand, Singapore and Vietnam. It also includes
The principal rationale for FTAs is to
unleash new flows of mutually beneficial
trade between Americans and the
citizens of our partner nations — and do
so in a way that is fundamentally fair.
With regard to the TPP, the potential
benefits are truly significant.
Source: USC
BUSINESS FEDERATIONS NEWS - MARCH 2015 EDITION - 9
PHOTOS COURTESY: THINKSTOCK
Mar 04 - USC: the Trans-Pacific Partnership for trade
Mar 03 - CCC: Business must help fix free
trade
Things have changed a lot since the
founding of the World Trade Organization
(WTO) in 1995. Once a symbol of an
inevitable march toward global free
markets, in 2015, it more often serves as a
reminder of how quixotic that process has
become. Fatigue is spilling over to the
bilateral and regional level, where there
has been a flurry of negotiations, but few
meaningful outcomes. Who would fault
busy executives for turning their attention
to other things?
Many would like to blame the current
state of affairs on out-of-touch
bureaucrats and short-sighted politicians.
Yet the business community has
responsibilities too. Companies and their
representatives need to define new
priorities and communicate effectively the
gains that free trade brings to consumers,
workers and innovators. They need to
build relationships across borders and
bridge diverging national interests.
Diplomacy can no longer be left to the diplomats.
The evolution of the trading system since the early 1990s has been complex. There has been
enormous growth in cross-border trade and investment, as companies have expanded into
new markets and previously closed-off economies have joined global production networks.
In contrast, the treaties and institutions that underpin these trade flows have remained
remarkably static.
When the North American Free Trade Agreement and the WTO hit the world stage in the
mid-1990s, free trade seemed like an unstoppable force. Tariffs fell to unprecedented levels
(at least among developed countries). New rules on nontariff barriers and services aimed to
halt protectionism by other means and liberalize new corners of the economy.
There were big gaps, however. For instance, trade in agriculture went almost untouched,
there was no agreement on foreign investment, and hopes that countries would expand
their commitments to liberalize trade in services went unrealized. In practice, many hardfought intellectual property protections have been worth little more than the paper on
which they are written. All the while, fundamental changes in the way companies do
business — driven by global supply chains and the spread of the digital economy — have
highlighted gaps like these and revealed the importance of addressing them.
More recently, the aftermath of the 2008-09 financial crisis shows that government officials
can sidestep trade rules by using regulatory changes, customs procedures, state aid and
other creative measures to favor domestic industries. Six years into a painfully slow
recovery, trade as a share of world GDP is barely at its pre-crisis level, and foreign
investment has fared much worse (see Figure 1).
P H O T O C O U R T E S Y : T H I N K S TO C K
So what can business do to set right the
ship of trade? What strategies will bring
forth the next wave of liberalization?
It starts by better understanding how
shifts in the global balance of power have
made it harder for countries to cooperate
on trade. In this new reality, national
business groups should strengthen ties
with their foreign counterparts and apply
pressure at multiple points in an
increasingly
fragmented
regime.
BUSINESS FEDERATIONS NEWS - MARCH 2015 EDITION - 10
Attempts to plug the gaps in the trade
regime have mostly failed. From the
collapse of the Multilateral Investment
Agreement and Free Trade Area of the
Americas, to the never-ending Doha
Round, business has been served with a
series of disappointments.
There are a few bright spots, of course.
Some countries have taken steps to
liberalize on their own, as Canada did by
eliminating tariffs on capital goods in the
manufacturing sector. The WTO surprised
many in late 2013 when members
endorsed a package of measures at the
Bali Ministerial, including a treaty on trade
facilitation that could cut global trade
costs by up to 10 percent. Sector talks in
Geneva on services and environmental
goods are off to a good start. And despite
the rise of beggar-thy-neighbor policies
during the recession, they pale in
comparison to the harsh protectionism of
the 1930s.
Another positive sign is that the Western
trading powers have started to negotiating
agreements among themselves. Canada
and the EU concluded one last year. The
US and Japan are facing off in the TransPacific Partnership (TPP), and the EU is
conducting separate bilateral talks with
both of them. These negotiations could be
game-changers, especially if the three can
agree to recognize each other’s regulatory
requirements and product standards,
upon which most of the world relies.
However, the success of these initiatives is
far from assured, and similarly ambitious
agreements with the BRICS (Brazil, Russia,
India, China and South Africa) countries
are a long way away.
In many ways, trade liberalization has
been a victim of its own success. Access to
rich-world consumers gave emerging
economies markets to sell their wares.
Leading multinationals set up shop,
bringing with them much-needed capital
and technology. Local firms learned from
them and upgraded their abilities.
Economic growth accelerated, pulling
hundreds of millions out of poverty in the
process. This is how globalization was
supposed to work.
But the rise of new trade centers —
combined with the fallout from the
financial crisis, which disproportionately
hit rich countries — has had a profound
effect on the distribution of economic
clout. The BRICS now account for more
than a quarter of global output. Add
Mexico, Turkey, Indonesia and South
Korea and South Africa, and combined
they come close to the total output of the
G7 economies.
This new configuration is a challenge for
international cooperation. The days when
the US, the EU, Japan and Canada (known
as the Quad) could sit down and agree on what to do, and the rest of the world would fall
into line, are over. New access to these markets does not mean what it used to. Their tariffs
are already low by world standards, and growing south-south trade means there are other
options. The economic significance of China, for example, makes it easier for Russia to
weather Western sanctions.
Another problem is that the BRICS et al. have been cautious to embrace markets. Willing to
take advantage of export opportunities, they are less interested in undertaking domestic
reforms that would put foreign companies on an even footing. The state continues to play a
central role in the economy. For instance, more than half of the top companies in China and
India are owned by the government. Underdeveloped social programs mean price controls
and subsidies are often the easiest way to meet the needs of vulnerable citizens. In this
context, building consensus on trade rules that go beyond traditional tariff cuts is not easy.
It is not just the emerging markets that are making it hard to find common ground.
Advanced economies may understand each other when it comes to the balance of state and
market, but today’s “next generation” trade issues are harder for them to handle. Tariffs are
quite obviously intended to protect domestic industry. Regulatory discrepancies are
motivated, at least in principle, by the pursuit of legitimate public policy objectives.
Removing these barriers requires the involvement of numerous government agencies and is
more likely to provoke opposition from civil society.
For freer trade, business should not abandon the multilateral system.
Thankfully, the tensions we see today have so far only slowed down liberalization. A
wholesale reversal, as the world experienced during the interwar period (another time of
great economic and geopolitical change) seems unlikely. Nonetheless, free traders need to
stay vigilant.
What lessons should the business community draw for the future? First, there is no big-bang
solution for freer global trade. Business should not give up on the multilateral system, but it
cannot afford to put all its eggs in the WTO basket. Regional trade agreements are here to
stay. There is also much that can be done outside traditional trade negotiations, in forums
like the G20 and in national capitals around the world. Business needs to work incrementally
at all levels. Second, inclusiveness matters. The rise of new trade powers means that
Organization for Economic Co-operation and Development (OECD) industry groups have to
forge partnerships with their counterparts in these markets, and work with them to build a
common vision. Finally, trade will not be addressed in isolation. Business has to ensure that
policies affecting trade — in the areas of energy, climate change, product safety and privacy,
for instance — are effective and better coordinated.
Having the private sector play a more prominent role in global governance is not a new idea.
During the interwar period a group of industrialists, financiers and traders formed the
International Chamber of Commerce (ICC), calling themselves “merchants of peace.”
Once again, business needs to lead. In 2013, over a dozen national industry associations
from all five continents formed the B20 Coalition, with the Canadian Chamber of Commerce
as founding chair. The goal of the group is to build a more cohesive business community and
to bring continuity to the global economic agenda. One of the coalition’s first steps was to
develop the following recommendations for the G20 leaders at the 2014 Summit in
Brisbane:
-
-
-
Reaffirm the standstill pledge on protectionism that started during the crisis and
strengthen the capacity of the WTO to monitor compliance and establish a timeline to
roll back protectionist measures;
Comprehensively implement the Trade Facilitation Agreement without delay;
Develop a new, balanced agenda to complete the Doha Round that includes agriculture
and non-agriculture market access, as well as services;
Take unilateral steps to improve customs procedures and to reduce barriers to imports
and the supply of services;
Make progress on plurilateral agreements in the areas of services, environmental
goods and information technology, with the ultimate aim of multilateralizing them
under the WTO;
Explore ways to bring disciplines of government procurement, foreign direct
investment, export restrictions and state-owned enterprises into the WTO; and
Increase the coherence of new bilateral and regional trade agreements with the WTO
system by monitoring them and studying their effects, and encouraging more liberal
rules of origin in those negotiations.
The recommendations were informed by the need to simultaneously push for liberalization
at all levels, and to do so in a mutually reinforcing way. The coalition and its member
BUSINESS FEDERATIONS NEWS - MARCH 2015 EDITION - 11
associations, which span developed and
developing economies, disseminated them
widely and have been monitoring their
implementation by national governments,
working in tandem with the ICC and other
international industry groups.
Thanks in part to efforts like these, there
are real signs of progress since Brisbane.
Within weeks of the summit, the WTO
adopted the Trade Facilitation Agreement
— the first multilateral trade treaty in over
20 years. Countries are working tirelessly
in Geneva to “recalibrate” the Doha
agenda in hopes of concluding a modest
deal this year that would clean the slate
for future talks. There are signs of life at the regional level too. After nearly two years of
treading water, the contours of the Trans-Pacific Partnership are emerging, and American
officials are musing about how China might be included down the road.
Restoring positive momentum to the global trading system is an uphill battle and everyone
needs to roll up their sleeves. For Canada especially — a middle economy highly exposed to
cracks in the trading system — indifference is not an option. Industry groups around the
world can and should guide governments towards a more open world economy, where
companies compete and innovate on a level playing field. The alternative destination is in
no one’s interest, especially not Canada’s.
By Hon. Perrin Beatty and Cam Vidler
The Hon. Perrin Beatty is the president and CEO of the Canadian Chamber of Commerce.
Cam Vidler is the chamber’s director of international policy.
Source: Policy Options
Mar 03 - BUSINESSEUROPE: Commitment
to work together for global IP system
Businesses and intellectual property (IP)
offices took stock of on-going cooperation
projects at their annual meeting in
Yokohama, where BUSINESSEUROPE with
its US and Japanese IP counterparts met
the Presidents of the European, US and
Japanese IP offices. Cooperation means
less red tape and costs for users of the
global patent system. In addition, they
discussed progress of multilateral
discussions on substantive harmonization
of patent laws.
Source: BUSINESSEUROPE
Mar 03 - CEOE: Cooperation of Spanish
and Colombian SMEs: future of bilateral
relations
The
president
of
the
Spanish
Confederation of Employers and Industries
(CEOE), Juan Rosell, stressed that the
cooperation of Spanish and Colombian
SMEs represents the future of their
bilateral relations, during a business
meeting this week at the Palacio del
Pardo, held alongside the state visit of
President of Colombia, Juan Manuel
Santos.
commitments, between the European Union, Colombia, Peru and Ecuador had been an
important step in strengthening bilateral economic relations.
As regards regional integration processes, CEOE highly valued the integration of the Pacific
Alliance, which includes Chile, Peru, Colombia and Mexico, and aims to secure an area of
free movement of goods, services, investment and people. “The Pacific Alliance brings
together 40 percent of GDP and 50 percent of exports from Latin America, making this
process of integration into the most dynamic and promising in Latin America,” he said.
Rosell highlighted the growing presence of
Spanish companies in Colombia in recent
years, "which ranks us, with a cumulative
investment of over 6,600 million euros, as
one of the largest foreign investors in the
country."
The CEOE president said that the 2013
Multilateral Agreement, eliminating tariffs
and providing public procurement
PHOTOS COURTESY: THINKSTOCK
He pointed out that the formation of over
400
Spanish SMEs in Colombia
demonstrated their confidence in the
seriousness and reliability of the country.
Translated and summarized from Spanish
Source: CEOE
BUSINESS FEDERATIONS NEWS - MARCH 2015 EDITION - 12
The Business Mission to Egypt, which took
place on 22-24 February, 2015, was
organized by the confederation of Italian
Industry (CONFINDUSTRIA), ICE and ABIAgency - under the patronage of the
Ministry of Economic Development and
the Ministry of Foreign Affairs and
International Cooperation.
The mission comprised 90 companies,
industry associations and 5 five banking
groups, amounting to a delegation of over
170 participants, led by Deputy Minister of
Economic Development, Carlo Calenda,
the Chairman of the Technical Group
Internationalization of Confindustria, Licia
Mattioli, and by leaders of ICE and ABI.
The initiative enabled participating
companies to explore opportunities for
collaboration and investment and further
consolidate the strategic partnership with
Egypt at a time when the new-found
political stability of the country under the
aegis of President Al-Sisi, has opened up a
renewed
phase
of
growth
and
development.
The Egyptian authorities welcomed the
Italian initiative and took great interest in
the program of work -the institutional
delegation was, in fact, able to meet the
highest levels of government, including
President Al-Sisi himself, Prime Minister
Mahlab, and the Ministers of Industry and
Commerce,
Petroleum,
Transport,
Investment, Electricity and Renewable
Energy, and International Cooperation.
Schedule of the Mission
The mission began in Cairo on the morning
of February 23, with the organization of
three technical in-depth seminars focusing on:
-
Infrastructure, during which particular attention was paid to the ambitious plan for
mega-infrastructure projects that will be officially presented at the conference in Sharm
El-Sheikh, to be held March 13 to 15;
-
Renewable Energy, with a particular focus on the implementation of wind and solar
projects;
-
Mechanics for agriculture and food processing.
Afterwards, the Italian-Egyptian Business Forum took place during which speakers included,
on the Italian side, the Deputy Minister of Economic Development, Carlo Calenda, the
Chairman of the Technical Group Internationalization of Confindustria, Licia Mattioli, the
Italian Ambassador to Cairo Maurizio Massari, and the Chairman of the Executive
Committee of International Affairs of ABI, Guido Rosa.
The Egyptian side was represented by the Egyptian Minister of Industry and Commerce,
Mounir Fakhry Abdel Nour, the Minister of Investment, Salman Ashraf, and the Minister of
International Cooperation, Naglaa Anwar Al Ahwany. In the afternoon of Monday, February
23, business meetings between Italian and Egyptian representatives were held - over 1,000
meetings were organized with over 250 local businesses registered and operating within the
focus of the mission.
The following day, February 24, the delegation was divided on a sectoral basis to pursue
three visits in depth:
-
Suez Canal, for companies in the infrastructure sector. The delegation was welcomed by
the President of the Suez Canal Authority, Adm. Moheb Maamish, who presented the
mega-plan to double the Canal which is a major market opportunity for Italian
companies operating in all sectors of infrastructure. Afterwards there was a visit to the
construction sites in progress.
-
Zaafarana wind farm, for companies operating in the renewable energy sector.
-
Plants of Tanta Motors and Egyptian Canning Co. Best, for companies in the agricultural
engineering and food processing sectors.
Satisfaction of the Mission
The results of the customer satisfaction questionnaires showed the very high satisfaction
expressed by the participating Italian companies: 81.9 percent for business meetings, 100
percent for the reception, 97 percent for documentation, 94 percent for seminars and
Business Forum and 100 percent for sectoral visits.
Translated from Italian
Source: CONFINDUSTRIA
BUSINESS FEDERATIONS NEWS - MARCH 2015 EDITION - 13
P H O T O C O U R T E S Y : T H I N K S TO C K
Mar 03 - CONFINDUSTRIA business
mission to Cairo: Outcome
Feb 27 - CII - KEIDANREN joint press release on India-Japan Business Summit
The Confederation of Indian Industry (CII) and KEIDANREN (Japan Business Federation)
organized the "India-Japan Business Summit" on February 27, 2015, in New Delhi. The
Summit assumes special significance as it was organized on the sidelines of the 21st
International Engineering & Technology Fair (IETF) 2015 where Japan is participating as the
"Partner Country".
The Business Summit was attended by about 100 industry representatives from India and
Japan which included a 30 member business delegation from KEIDANREN, led by Mr Hiroaki
Nakanishi, Vice Chairman and Chairman of Committee on South Asia and Mr Takashi Shoda,
Co-Chairman of Committee on South Asia.
Both sides exchanged views on various topics of bilateral cooperation between India and
Japan to establish strategic cooperation in public-private partnership to strengthen IndiaJapan economic engagement.
CII, led by Mr Sumit Mazumder, President Designate, CII, stated that India and Japan could
work together in areas such as SME Development, Skill Development and the Infrastructure
sector. More specifically, it was stressed that there is a need to expand Japanese investments
in India in areas such as high speed rail transit systems, nuclear and solar power generation,
clean coal technologies and upgrading of brown coal.
KEIDANREN, led by Mr Hiroaki Nakanishi,
Vice Chairman and Chairman of
Committee on South Asia identified Rail,
Power, and Tourism as the potential
sectors for boosting trade and
investment between the two countries.
CII and KEIDANREN are the serving
Secretariat organizations for India Japan
Business Leaders Forum (IJBLF) from
India and Japan respectively. The Forum
meetings are held on the sidelines of the
Annual Summits between the Prime
Ministers of India and Japan. To take
forward the various recommendations
that are put forth in the IJBLF Joint
Report, CII and KEIDANREN have agreed
to institutionalize the IJBLF follow-up
mechanism including establishment of
Joint Working Groups to resolve
outstanding issues.
Through the Follow-up Mechanism, CII
and KEIDANREN agreed to do regular
follow ups with the government agencies
in the two countries on specific actions
taken by the government towards
speedy
implementation
of
recommendations put forth in the IJBLF
Joint Report.
CII and KEIDANREN agreed that the two
organizations will further strengthen
their partnership through regular
exchange of information on the evolving
business environment in both the
countries and also promote bilateral
economic relations through mutual visits
and business delegations.
Source: KEIDANREN
Feb 26 - USC statement on FCC’s net neutrality decision
US Chamber of Commerce Senior Vice President for the Environment, Technology, &
Regulatory Affairs Bill Kovacs issued the following statement on February 26, 2015 regarding
the Federal Communications Commission’s (FCC) decision to regulate broadband under Title
II of the “Communications Act”:
“Net neutrality rules are a bad solution
to a problem that doesn’t exist. An ‘open
Internet’ has benefitted consumers,
fostered innovation and investment, and
changed our lives for the better. We
should not shackle this dynamic and
competitive market with rules from a
bygone era.
“The Chamber strongly opposes the FCC’s decision to impose burdensome, archaic Title II
regulations on broadband. This action by the FCC, on February 26, 2015, will plunge the
industry into years of litigation and cause extreme regulatory and market uncertainty.
“Applying 80 year-old rules designed for telephone monopolies to broadband just doesn’t
make sense. It upends nearly two decades of bipartisan support for regulating the Internet
with a light-touch.
The US Chamber of Commerce (USC) is
the world’s largest business federation
representing the interests of more than 3
million businesses of all sizes, sectors,
and regions, as well as state and local
chambers and industry associations.
Source: USC
BUSINESS FEDERATIONS NEWS - MARCH 2015 EDITION - 14
PHOTO COURTESY: CII & THINKSTOCK
“Congress — not unelected bureaucrats
— should determine federal broadband
policy and whether or not such a
fundamental change is warranted. We
urge Congress to provide the FCC with
statutory guidance on this issue and their
let intentions be known."
Feb 25 - BDI advocates uniform EU electricity market design
Federation of German Industries (BDI) Director Markus Kerber praises the European Energy
Union and asks that words quickly turn into deeds.
Brussels on February 25, 2015, on the
occasion of the European Commission
Communication on Energy Union.
"Now it is crucial that the Commission's
words rapidly translate into action,"
Kerber said. According to BDI, in view of
the uniform EU electricity market design,
a basic control system is required, which
must be technology-neutral and nondiscriminatory. "It's about maintaining
the competitiveness of European
industry."
Kerber criticized the decision of the EU
Environment Committee to intervene in
the current trading period for emissions
trading. "This will further impact on our
business." Later this year, a major reform
of the EU Emissions Trading Scheme will
be announced and it is important that
the Commission prevent additional
unilateral burdens on businesses,
stressed Kerber.
"The Energy Union package will bring new momentum to Europe's energy policy. This is long
overdue. Energy policy and energy security can only be overcome by concerted European
action," said Markus Kerber, Director General of the Federation of German Industry (BDI) in
Source: BDI
Feb 25 - FKI: Korea, Czech Republic agree to strengthen cooperation
The meeting was attended by 70
members of the Czech delegation,
including the prime minister, the
transportation
minister
and
the
chairman of the Czech Chamber of
Commerce. Sixty attendees from the
Korean side were Chairman Huh and
senior executives of the Korea Chamber
of Commerce and Industry, the Korea
International Trade Association (KITA),
the Korea Federation of Small and
Medium Business (Kbiz), Hyundai Motor
Company, Korean Air and Samsung
Electronics.
The participants from both countries agreed to enhance economic cooperation by taking
advantage of the Korea-EU Free Trade Agreement (FTA), hoping to promote cooperation in
industry and technology.
In his luncheon speech, FKI Chairman Chang Soo Huh said, "The Czech Republic is a European
production hub of Korean auto-makers and it is also a distribution hub. Since our bilateral FTA
became effective, potential for cooperation between us has become greater and the areas of
cooperation have become more diverse, encompassing energy, infrastructure, ICT, medical
equipment and the film industry.
Source: FKI
PHOTOS COURTESY: THINKSTOCK
Korea's four business organizations including Federation of Korean Industries (FKI) invited the
Czech economic mission led by Czech Prime Minister Bohuslav Sobotka to the Business Forum
and Luncheon at Lotte Hotel Seoul on February 25.
BUSINESS FEDERATIONS NEWS - MARCH 2015 EDITION - 15
Feb 24 - UIA’s analysis of the Argentina
and China cooperation agreement
the Union on February 10. The UIA maintained their associations were “concerned about
the negative effects that the implementation of the agreement might have on domestic
production and employment”.
It also noted the "importance of the debate taking place in the Chamber of Deputies, given
the strong impact that that Convention may have for the future development of our country
and industry. Due assessment must be done by ensuring the necessary time is given to
weighing up its characteristics and implications. "
After the controversy generated by the
signing of the agreement and the response
of the President, the Board of Directors of
the UIA discussed and endorsed the
statement on the Convention released by
Feb 24 - BDI in TTIP discussions at
Transatlantic Forum 2015
At the Transatlantic Economic Forum 2015
in Berlin this week, the German business
and industry associations BDI, DIHK and
GCIC commented on the forthcoming
Transatlantic Trade and Investment
Partnership (TTIP), which in their view had
outstanding importance for transatlantic
trade. At the joint meeting, BDI President
Ulrich Grillo and GCIC President Eric
Schweitzer discussed the TTIP with 300
experts from industry, government and
civil society, including EC Trade
Commissioner Cecilia Malmström and
Federal Minister Sigmar Gabriel.
From the perspective of the German
economy TTIP offers a great opportunity
to reduce tariffs and other administrative
barriers to transatlantic trade. "TTIP will
ensure high consumer, environmental and
At the meeting, the economist Eduardo Curia, invited by the UIA, made a presentation on
the economic outlook in the short term and its impact on the industrial sector as well as the
context in which the agreements between Argentina and China signed. The impact of
different national and provincial projects to create legislation for new jobs was also
analyzed.
Translated from Spanish
Source: UIA
social standards. Rules and standards should be harmonized to the point where we have a
level of protection," demanded BDI President Grillo. "It's about more trade with better
rules." GCIC President Schweitzer confirmed: "For companies, it comes down to cutting red
tape and not the dismantling of democracy. Especially for small and medium-sized
businesses, which often have no means of dealing with complex export and customs
formalities, it is important that TTIP achieves a pragmatic simplification."
Grillo and Schweitzer also expected tangible improvements in access to public contracts in
America - especially at state level. This large market remains largely closed to foreign
suppliers due to "Buy American” rules. Germany is an exporting nation and depends more
than almost any other country on open markets. A quarter of all jobs in Germany depend on
exports. The US is the second largest market worldwide - but from the perspective of BDI
and GCIC, much existing potential has yet to become reality.
In addition to the reduction of trade barriers, the TTIP is also about forming a partnership
with the United States for the future. An in-depth cooperation offers the opportunity to
develop trading rules together and to actively shape globalization. The Transatlantic
Economic Forum 2015 also provided the arena in which to express and discuss many other
current concerns such as chlorine chicken, genetically modified corn and litigious
corporations.
Translated from German
Source: BDI
BUSINESS FEDERATIONS NEWS - MARCH 2015 EDITION - 16
PHOTOS COURTESY: THINKSTOCK
The Board of the Industrial Union
Argentina (UIA) re-affirmed its analysis, on
February 24, 2015, of the trade agreement
between the government of Argentina and
China, and expressed "concern about the
negative effects" of the Convention on the
production and employment.
"The Board expects shortly to coordinate meetings with the Executive to arrive at
clarification on the signed complementary agreement and other specific agreements
already signed for the implementation of the Framework Convention,” said a spokesman,
quoting a UIA statement.
Feb 10 - CNI: Brazil needs to ratify the
BRICS bank urgently
It is essential that the governments of the
BRICS (Brazil, Russia, India, China and
South Africa) accelerate the process of
ratification and implementation of the
agreement
establishing
the
new
Development Bank of BRICS. This was
stated by the president of the National
Confederation of Industry (CNI), Robson
Braga de Andrade.
In Brazil, the Treaty has yet to be
approved by Congress. The CNI president
participated in the opening of the meeting
of the Business Council of BRICS, on
February 10, 2015, along with the Minister
of Development, Industry and Foreign
Trade Armando Monteiro Neto, and the
President of the Council, José Rubens de la
Rosa.
Feb 06 - MEDEF: French-African Forum –
Editorial from Pierre Gattaz
The meeting brought together 25 leading businessmen, five from each country, to discuss
the agenda of the manufacturing sector which will be taken up at the meeting of the
presidents of the BRICS, on July 9-10, 2015 in Ufa, Russia. The push by the private sector for
the rapid implementation of the Agreement is a major reason. The institution will take up to
seven years to be fully operational at USD 10 billion. According to the schedule of the
agreement, each of the five countries must assign USD 150 million in the first year, USD 250
million in the second year, USD 300 million in the third, fourth and fifth years. As soon as
the bank becomes operational, it will be instrumental in stimulating investment and
supporting business enterprises in the five countries.
"The mobilization of resources for public and private infrastructure projects and sustainable
development is crucial for us to move forward in these areas, away from the financial
constraints faced by our private sector," says President Robson Braga de Andrade. The
Brazilian business sector will also work for the Bank of BRICS to finance projects in other
countries and not only within the group. So, it would become a source of funding to develop
projects in third markets. In addition, although the bank's headquarters will be in China,
Brazilian businessmen argue that the Business Council has the advisory role in the
Development Bank and a subsidiary in Brazil.
Translated from Portuguese
Source: CNI
rate has topped five percent for the past decade. It is a dynamic continent that many French
investors are discovering or rediscovering.
France is at a turning point in its economic
relations with Africa, and the FrenchAfrican Forum for Shared Growth – jointly
organized by the French Business
Federation, MEDEF International and
France’s Economy and Finance Ministries –
provides African and French investors with
a fresh opportunity.
These days, no company looking to expand
internationally can afford to ignore Africa:
it will contain a quarter of the world’s
population by 2050, and its annual growth
Areas in which our African partners would like to see a French presence include youth,
innovation, urban development, infrastructures including electrification, and its attendant
challenges and the issue of financing for both the economy and business development
These very themes will be featured at this forum, so that together we can find the path
leading to shared success. France’s private sector must act as a driver to strengthen our
joint partnership. It is the role and remit of MEDEF – and specifically MEDEF International,
nearly half of whose activity is Africa-based – to provide support and impetus for the
development of French firms in Africa.
Our resolve is strengthened by that which we observe across the African continent on a
daily basis, via our subsidiaries. Africa is forging ahead on its path to growth and emergence,
and it needs investments as part of balanced relations. French businesses very much want
to bolster economic ties with partners for the future.
By Pierre Gattaz, Chairman of MEDEF
Source: French-African Forum
BUSINESS FEDERATIONS NEWS - MARCH 2015 EDITION - 17
PHOTOS COURTESY: THINKSTOCK & MEDEF
In an increasingly competitive business environment, French businesses need to step up
their presence in an Africa that is on the move. For Africa’s foreign partners, unshakeable
market positions are a thing of the past, and France needs to update its perception and its
actions to provide appropriate responses to the continent’s specific challenges. Local
content, training and technology sharing – all of them elements of positive differentiation –
must be included in our strategies and projects.
Feb 02 - AiG CEO Survey - Business
Prospects in 2015: Searching for Growth
improve business markets, viability and profitability.
The Australian Industry Group’s annual
Business Prospects Survey of Australian
CEOs – Searching for Growth – clearly
indicates that business leaders remain
wary about the outlook for 2015. The
dominant impediment to business growth
for the year ahead is a lack of demand.
This reflects weak business confidence - as
seen in the impacts that modest
investment intentions and the flat labor
market are having on job security and
consumer confidence.
CEOs expectations point to another subpar year in 2015 with about 15 percent
more businesses expecting a further
deterioration
in
general
business
conditions (38 percent of CEOs) compared
with the number expecting that conditions
will improve (24 percent of CEOs). The
majority of Australia’s CEOs expect
business conditions will deteriorate (38
percent) or stay the same (38 percent) in
2015, relative to 2014.
At the same time, on balance CEOs are
expecting an increase in sales revenue,
modest growth in employment and only a
gradual lift in business investment. In
more clearly positive results, businesses
are anticipating significantly larger
productivity gains in 2015 than those
actually achieved in 2014. As well, with the
further depreciation of the domestic
currency since September last year, CEOs
anticipate increased export sales in the
year ahead.
AiG Chief Executive, Innes Willox said: “It
is clear from the findings of this broad
survey of industry leaders that as the
mining investment boom fades and
commodity prices retreat, the Australian
economy is struggling to achieve the
rebalancing that is so clearly required. The
recovery in housing construction has been
a welcome boost, but it is clearly not
enough to support widespread growth
across the economy either in terms of
industrial or geographic diversity.
“As they confront this patchy outlook,
CEOs are taking steps to lift the
performance of their own businesses.
With broadly similar results across
industries, the major strategies CEOs
anticipate adopting are growing sales of
existing products and services; introducing
new products or services; and developing
new domestic markets. Interestingly,
these approaches rank ahead of further
downsizing and cost cutting which were
the leading strategies adopted by
businesses in 2014. While cost cutting
remains on the agenda for many
businesses in 2015, there is much greater
emphasis on proactive measures to
“A major implication for policy-makers from the CEOs’ 2015 outlook is that Australia is
struggling to unearth the new sources of growth needed to re-energize and rebalance our
economy. While businesses are working hard to grind out productivity gains and are striving
to find new and additional revenue sources, governments also have critical roles to play – to
improve confidence and to help create the conditions for more decisive improvements in
business competitiveness.
“Such improvements are needed to entice greater levels of investment; a more rapid pace
of job creation; and the important diversification of our economy from our increased
exposure to volatile commodity prices and export markets. In particular, real progress is
needed across four business wide policy areas in 2015:
-
Tax and Federation reform, to improve the efficiency of taxation and spending; to
reduce barriers to investment and innovation and to strengthen and stabilize our tax
bases and governments’ fiscal positions.
-
Skills and education measures, including an increased emphasis on developing science,
technology, engineering and maths (STEM) skills.
-
Improving workplace relations, to remove barriers to business growth and
reorganization and to encourage greater workforce participation including from those
presently disengaged from the workforce.
-
Supporting a faster pace of innovation, including through broader and deeper
collaboration between the business and research communities; and a greater
commitment to an effective and non-discriminatory Research and Development Tax
Incentive.
BUSINESS FEDERATIONS NEWS - MARCH 2015 EDITION - 18
“Some progress has been made on these
policy areas but renewed efforts are
required to identify and articulate the links
between these policy areas and further
national economic and social progress,”
Mr Willox said.
-
Stable or higher export income
Export income is expected to rise for 49 percent of businesses, decline for 11 percent
and remain the same for 41 percent of businesses in 2015. This likely reflects the
combination of expected growth in export volumes, as well as the rise in the value of
sales in Australian dollars, due to the stronger depreciation in the Australian dollar in
2014 and the potential for further drops in 2015.
Among this year’s key CEO Survey findings,
Australian CEOs reported that in 2015 they
expect:
-
Increase in input prices
Input costs are expected to rise for 54 percent of all businesses and remain stable for 39
percent of the respondents. Only 7 percent are expecting their input prices to fall. This
expectation may have reflected the further depreciation of the Australian dollar in 2014,
which will increase prices for imported inputs and components.
-
Increase in energy prices, but a reduction in business spending on energy efficiency
measures
42 percent of Australian CEOs expect the prices they pay for energy will rise in 2015 and
14 percent expect them to decline. Despite the removal of the carbon tax from July 1,
2014, ongoing increases in network and distribution charges, as well as the flow-on
effects from liquefied natural gas (LNG) exports on the east coast, are expected by many
CEOs to elevate energy prices in 2015.
-
-
Higher sales revenue
Sales revenue (annual turnover) is
expected to improve for 49 percent of
businesses in 2015 relative to 2014,
but to decline for 27 percent of
businesses. The remaining 24 percent
of CEOs expect no sales revenue
growth, relative to last year.
Mildly higher employment
34 percent of CEOs plan to increase
their employee numbers in 2015 but
22
percent
plan
to
reduce
employment. The remainder (44
percent) do not plan to change their
employment numbers. In aggregate,
expectations of stronger employment
in the very large services sectors could
tilt the balance of expectations
towards one of a small gain in total
employment in 2015. CEOs in all
industries outside the services sectors
(that is, manufacturing, construction
and mining services) are expecting to
reduce their net employment.
-
Stable capital investment
Capital investment expenditure is
expected to rise for 30 percent of
businesses, but decline for 27 percent
of businesses. It will remain
unchanged for 43 percent of
businesses.
-
Stable or slightly higher spending on
research and development (R&D)
R&D spending is expected to increase
for 22 percent of businesses and
decline for 13 percent. The majority
(66 percent) of CEOs expect their R&D
expenditure will remain the same for
2015. These expectations – and
particularly
the
relatively
low
proportion of businesses planning to
cut R&D spending in 2015 – suggest
most Australian CEOs place a high
priority on product development and
innovation, despite trying to rein in
costs and spending elsewhere in their
business in response to tough
conditions.
-
Stable or higher spending on new
technology
Investment in new technology is
expected to increase for 34 percent of
businesses, stay the same for 52
percent in 2015 and be cut for 14
percent of businesses.
In response to changes in legislation and other factors (e.g. general cost cutting), 41
percent of CEOs expect to reduce their investment in energy efficiency in 2015 relative
to 2014, while a quarter are looking to increase such spending, leaving a net balance of
16 percent expecting to reduce this type of investment. One third of respondents plan
to maintain their current level of investment on energy efficiency. This ‘net balance’
reduction might reflect the large amounts already invested in energy efficiency by these
businesses over the past few years, as energy costs have risen.
-
A faster pace of productivity improvement
39 percent of CEOs expect an improvement in labor productivity in 2015, but 9 percent
expect it to fall in their own business.
Looking at the key concerns that Australia’s CEOs hold for 2015, a quarter (25 percent) of
CEOs say that a lack of customer demand is the largest inhibitor of growth for their
business, followed by wage pressures or high wage costs (15 percent) and competition from
imports and online sellers (12 percent) (See Chart 1). These results for 2015 are similar but
not identical to the key impediments identified by CEOs in 2014 and 2013.
Chart 1: Expected impediments to business growth, percentage of respondents*
* Percentage of businesses who nominated each factor as one of their top three
impediments to growth.
Note: This survey was conducted in late 2014 and involved 352 CEOs from manufacturing,
construction, services and mining services.
Source: AiG
Click here to read or download full report (56 pages):
Ai Group CEO Survey - Business prospects in 2015: Searching for Growth
BUSINESS FEDERATIONS NEWS - MARCH 2015 EDITION - 19
Feb 02 - CEOE and CII sign MoU
The vice president of the Spanish
Confederation of Employers and Industries
(CEOE), Joaquim Gay Montella, and the
CEOE director of Presidency and
Institutional Relations, Narciso Casado,
and Jose Vicente Morata of the Spanish
Chamber of Commerce, accompanied the
Secretary of State for Trade, Jaime GarcíaLegaz, in a program of activities during his
visit to India.
On February 2, 2015, the group met
Spanish businessmen operating in the
country, with the aim of removing the
bureaucratic obstacles encountered by
Spanish companies there. Later they held
a
seminar
entitled
"India-Spain:
Developing New Synergies" and finally, in
the framework of this visit, CEOE and the
Confederation of Indian Industry (CII)
signed a memorandum to promote
bilateral investments.
At the meeting this morning, representatives of a number of Spanish companies in India:
ADIF, ASIGNIA, ABENGOA, CAF, EBRO NATURAL GAS, ELCORTE INGLES, EON, IDOM, INDRA,
ISOLUX, NAVANTIA, OHL, ROCA, MAHOU, TYPSA, SAN JOSE, ACS, TALGO and PROSEGUR
analyzed the obstacles faced by their companies in India, in order to present them to the
authorities in a subsequent meeting. In addition, they stressed the importance of increasing
the presence of Indian companies in Spain. They also held a meeting with members of FICCI
(Federation of Indian Chambers of Commerce and Industry). Around 100 businessmen from
both countries were gathered together for the Seminar.
Gay Montella highlighted the progress of bilateral relations between Spain and India over
the last ten years. He noted that the largest European infrastructure operator in the country
is Spanish and 80 percent of the airspace is covered by Spanish technology. Therefore,
Spanish companies have a very solid presence in sectors that provide high added value, such
as infrastructure and energy.
The CEOE vice president spoke of the new national program launched by the Indian
government, which has five pillars: improving infrastructure, manufacturing growth, energy
sufficiency, skills development and improvement of business environment. He said that this
new plan represents great opportunities for strengthening bilateral economic relations.
Memorandum of Understanding
After the meeting, the president of CII, Ajay S Shriram, Vice President of CEOE, Gay Montella
along with the representative of the Spanish Chamber of Commerce, José Vicente Morata,
signed a memorandum of understanding, by which it was agreed to maintain frequent and
regular contact between the two countries to exchange economic and commercial
information, in addition to the commitment to disseminate business, with particular
emphasis on SMEs.
Gay Montella explained that "CEOE and CII maintain a close relationship both bilaterally and
multilaterally and about 230 Spanish companies are established in India in sectors such as
infrastructure, renewable energy, water treatment and urban waste, green technologies
and railways". He added that, in Spain, around 39 Indian companies operate through some
100 subsidiaries.
Translated from Spanish
Source: CEOE
Feb 01 - BDI presents its "Digital Agenda"
initiative is based on the recently developed "Digital Agenda" of the BDI.
This 100-page "Digital Agenda" document entitled "Seize opportunities. Strengthen
confidence. Act together" looks at the Digital Economy and the alteration of existing value
chains and gives recommendations to policy-makers seeking new business models,
The contents include contextual knowledge as well as information on topics such as data
protection and IT security, lack of skilled labor, research grants, and Industry 4.0, e-health
and digital building. The essential requirements are summarized in a comprehensive 20point plan. This includes, for example, the establishing of a European Digital Single Market
through a uniform framework and the strengthening of private investment in broadband
penetration.
The BDI "Digitization and industrial value chains" department is a cross-sectional resource
that links the existing expertise of several expert speakers. The team works in close
coordination with other departments of the BDI, providing orientation knowledge and
recommendations for the digital transformation of German industry. The Head of the
Department is Iris Plöger, who previously worked for 10 years in the Legal and Insurance
Department of the BDI.
Translated from German
Source: BDI
Click here to read or download full document (100 pages):
Seize opportunities. Strengthen confidence. Act together - Digital Agenda for German
Industry (in German)
BUSINESS FEDERATIONS NEWS - MARCH 2015 EDITION - 20
PHOTO COURTESY: CEOE
As the physical world begins to fuse with
the Internet, German industry is facing
profound changes. The Federation of
German Industries (BDI) is now responding
to the resulting challenges with the
creation of the “Digitization and industrial
value chains” department. The first
B20 / G20 NEWS - FULL STORIES
B20 SMEs & Entrepreneurship Taskforce Coordinating Chairs Melih Yurter – Board Member
Afyon Energy and Mary Andringa – president and CEO of Vermeer Corporation hosted the
B20 SMEs & Entrepreneurship Taskforce Kickoff Meeting on March 6, 2015 in Istanbul along
with Co-Chairs Göktekin Dinçerler, Board Member of Technology Development Foundation of
Turkey; and Diane Wang, founder and CEO of DHGate.com.
Mar 06 - Fifth G20-OECD annual high-level conference on anticorruption
The Fifth G20-OECD Annual High-Level Conference on Anticorruption: “Placing Integrity at the
Heart of the Business Culture” was held on 6 March 2015 in Istanbul. The Conference was
attended by the members of G20 Anticorruption Working Group, business representatives
and international organizations.
At the opening session of the Conference, B20 Turkey Chair M. Rifat Hisarcıklıoğlu underlined
the importance of G20 as a global governance mechanism and the support given by the
government and business community of Turkey in contributing to this process. Hisarcıklıoğlu
stated the negative effects of Corruption on competition and companies’ long-term
efficiency, and upheld B20’s commitment to further its work and present the
recommendations on this crucial issue. Also, Chairman of Prime Ministry Inspection Board
Yunus Arinci, OECD Director for Legal Affairs Nicola Bonucci and Deputy Undersecretary of
Ministry of Foreign Affairs and Turkey’s G20 Sherpa Ambassador Ayşe Sinirlioglu delivered
introductory remarks at the opening session.
The kickoff meeting hosted more than 90
international and local representatives
who are eager to discuss various issues
and get involved in the solutions to
challenges faced by SMEs around the
globe. SMEs & Entrepreneurship
Coordinating Chair Melih Yurter and CoChair Göktekin Dinçerler emphasized
that SMEs are engines of global growth
and they have promising levels of
employment especially during crises
throughout the world.
The participants were introduced to draft
priorities and an outline of activities of
the taskforce during the Turkish
Presidency. B20 Sherpa for Turkey Sarp
Kalkan welcomed all the participants and
stressed the importance of this taskforce
for Turkey as well as for other nations.
The participants then discussed the
priorities and aims of the taskforce and
indicated their enthusiasm to stay active.
Source: B20 Turkey
The conference was composed of four
panels where governments, business
people, civil society and international
organizations representatives discussed
and shared ideas on the necessity of
compliance measures, risk practices in
regional hub countries, collective and
active action against corruption and
suggested possible solutions when
responding to these issues.
B20 Sherpa for Turkey Sarp Kalkan, in his
closing
remarks
announced
the
commitment of B20 to keep the
discussed topics on the agenda through
the recommendation process.
Source: B20 Turkey
PHOTOS COURTESY: B20 TURKEY & G20 TURKEY
Mar 06 - B20 SMEs and Entrepreneurship Taskforce meeting
BUSINESS FEDERATIONS NEWS - MARCH 2015 EDITION - 21
Feb 12 - G20 Finance Ministers and Central Bank Governors meeting - Communiqué
1. We welcome the favorable outlook for growth and employment in some key economies.
However, growth in the global economy remains uneven and although the recovery is in
progress, it is slow, especially in some advanced economies, notably the euro area and
Japan. Some emerging market economies are slowing down with significant variations
across countries and regions, while the growth outlook for low-income developing
countries continues to be strong, albeit with some moderation recently. In some
countries, potential growth has declined, demand continues to be weak, the outlook for
jobs is still bleak, and income inequality is rising. Furthermore, global trade growth
continues to be low compared to its pre-crisis averages. Against this backdrop, we are
determined to overcome these challenges and deliver on our Leaders’ commitment to
achieve our objective of strong, sustainable and balanced growth, and to create jobs and
foster inclusiveness.
2. We note that the sharp decline in oil prices, reflecting both supply and demand factors,
will provide some boost to global growth, but with varying implications across economies.
In particular, the decline will increase the purchasing power of oil importing economies
and will exert downward pressure on inflation, though temporarily. However, the outlook
for oil prices remains uncertain. Therefore, we will continue to closely monitor
developments in commodity markets and their impact on the global economy.
3. Prolonged low inflation alongside sluggish growth and protracted demand weaknesses in
some advanced economies may increase the risk of persistent stagnation. Accordingly,
we will continuously review our monetary and fiscal policy settings and act decisively, if
needed.
4. We agree that consistent with central banks’ mandates, current economic conditions
require accommodative monetary policies in some economies. In this regard, we
welcome that central banks take appropriate monetary policy action. The recent policy
decision by the ECB aims at fulfilling its price stability mandate, and will further support
the recovery in the euro area. We also note that some advanced economies with stronger
growth prospects are moving closer to conditions that would allow for policy
normalization. In an environment of diverging monetary policy settings and rising
financial market volatility, policy settings should be carefully calibrated and clearly
communicated to minimize negative spillovers.
5. Fiscal policy has an essential role in both building confidence and sustaining domestic
demand. We will deliver our Leaders’ agreement to implement fiscal policies flexibly to
take into account near-term economic conditions, so as to support economic growth and
job creation, while putting debt as a share of GDP on a sustainable path. In Cairns, we
agreed to consider changes in the composition and quality of government expenditure
and tax to enhance the contribution of our fiscal strategies to growth. We note, in this
respect, that the fall in oil prices will provide some countries with an opportunity to
reassess their fiscal policies. We note the actions of those countries that have used the
current fall in oil prices to 2 further reduce inefficient fossil fuel subsidies in favor of
investment and better targeted transfers.
6. We recognize the key role of the G20 in boosting confidence and reducing vulnerabilities
through effective implementation and communication of macroeconomic and structural
policies. To this end, we will continue to assess major risk scenarios in the global
economy and remain vigilant. We recognize the role of sound macroeconomic policies,
structural reforms and strong prudential frameworks to help address potential volatility
of financial flows. We will also cooperate to manage spillovers arising from our domestic
policies. We will stick to our previous exchange rate commitments and will resist
protectionism.
7. In Brisbane, our Leaders announced comprehensive growth strategies to deliver on our
Sydney growth ambition and help overcome the challenges we face towards achieving
strong, sustainable and balanced growth. Our growth strategies include a substantial
number of macroeconomic and structural reform commitments aiming to increase
investment, lift employment and participation, enhance trade and promote competition,
which are critical to enhancing the growth potential. We will review our strategies to
ensure they remain appropriate in light of changing circumstances. We are committed to
effective and timely implementation of our growth strategies to accomplish our goals,
including those pertaining to reducing external imbalances. We will also strive to ensure
that growth is inclusive, including through policies that address income inequality. Thus,
we agreed to develop a robust framework to hold each other to account and monitor
progress towards our collective growth ambition. While we remain committed to
implement our entire growth strategies, we will consolidate our monitoring mechanism
by mostly focusing on the key
commitments that have the greatest
impact on growth. We will present
the first accountability report of the
implementation of our growth
strategies at the Antalya Summit.
8. We are committed to boosting
investment in our countries via
concrete and ambitious investment
strategies that will also support our
collective growth objective. These
strategies will include a set of policy
measures that further improves the
business environment and facilitates
financial intermediation. We will also
call on the multilateral development
banks to mobilize their resources and
technical expertise, and optimize
their balance sheets including for
investments in infrastructure. We
will continue to promote ways to
improve the quality of public
investment processes, increase the
number of bankable projects and
improve PPP models to attract
further involvement by the private
sector. We will also underline the
policy measures for strengthening
project planning to fulfill the
infrastructure needs of low-income
developing countries. We will put a
special emphasis on improving the
financing situation of and investment
environment for SMEs. We are
working to facilitate long-term
financing from institutional investors
and to encourage market sources of
finance, including securitization. To
promote infrastructure as an asset
class, we will encourage an
increasing role for new financial
models including transparent assetbased financing structures. We look
forward to early operationalization
of the Global Infrastructure Hub that
will contribute to delivering our
objectives outlined in the Global
Infrastructure Initiative including
through developing a 3 knowledge
sharing platform, addressing data
gaps and developing a consolidated
database of infrastructure projects.
9. We remain deeply disappointed with
the continued delay in progressing
the IMF quota and governance
reforms agreed in 2010 and the 15th
General Review of Quotas, including
a new quota formula. Recognizing
the importance of these reforms for
the credibility, legitimacy and
effectiveness of the IMF, we reaffirm
that their earliest implementation
remains our highest priority for the
Fund. We continue to urge the
United States to ratify the 2010
reforms as soon as possible. As
requested by our Leaders in
Brisbane, the IMF has initiated
BUSINESS FEDERATIONS NEWS - MARCH 2015 EDITION - 22
discussions on options for next steps. We agree that any option should constitute a
meaningful interim step towards the full implementation of 2010 reforms and should not
be viewed as a substitute. We call on the IMF to further its work on the options for
discussions in April. We remain committed to maintaining a strong and quota-based IMF,
with adequate resources to fulfill its systemic responsibilities. We look forward to the
quinquennial SDR review by the IMF this year.
10. We have made significant progress in completing financial reform agenda and are
committed to finalizing the remaining core elements this year. Critical steps remain to be
taken especially in addressing the too-big-to-fail problem, notably finalizing the proposed
common international standard on total-loss-absorbing-capacity for global systemically
important banks by the Antalya Summit after the completion of rigorous quantitative
impact assessment, including consequences on banks in emerging markets. We will
finalize the methodology for identifying systemically important financial institutions
beyond the banking and insurance sector by the end of 2015 and design policy measures
to be applied thereafter. We recognize the importance of timely, full and consistent
implementation of agreed reforms. In particular, we are committed to implementing the
Key Attributes of Effective Resolution Regimes for all parts of the financial sector that
could be systemic in the event of failure. We will enhance cross-border cooperation to
enable regulations to be more effective, particularly in the areas of resolution and overthe-counter (OTC) derivatives markets reforms, where swift implementation is required.
We encourage jurisdictions to defer to each other when it is justified in line with the St.
Petersburg Declaration. We look forward to the FSB’s annual report that will address the
progress of implementation and effects of financial regulatory reforms. We call on the
FSB to continue monitoring and addressing new and evolving financial risks, many of
which may arise outside the banking system. In this regard, we will implement the
updated shadow banking roadmap agreed in Brisbane to further improve the oversight
and regulation of shadow banking, appropriate to the systemic risks posed to ensure
resilient market based financing. We are concerned about market misconduct and the
recent trend of financial institutions terminating and restricting business relationships
with categories of customers. We will closely monitor these developments in view of
their potential impact on financial inclusion and stability.
11. We reiterate our full support to the G20/OECD Base Erosion and Profit Shifting (BEPS)
Project, showing our resolve to tackle cross-border tax avoidance by modernizing
international tax rules. We will finalize the deliverables under the BEPS Action Plan by
yearend. We endorse the mandate to develop a multilateral instrument to streamline the
4 implementation of the tax treaty-related BEPS measures. We also reaffirm our
commitment to strengthen tax transparency to prevent cross-border evasion. With
respect to the exchange of information on request, we urge all jurisdictions to fully
comply with the Global Forum standards and join the Multilateral Convention on Mutual
Administrative Assistance in Tax Matters. We will work towards completing the necessary
legislative procedures to begin the automatic exchange of information (AEoI) within the
agreed timeframe. We look forward to the practical and full implementation of the new
standard on a global scale and reiterate our commitment to making AEoI attainable by all
countries, including all financial centers, and support the pilot projects. We welcome the
direct engagement of developing countries in the BEPS Project ensuring that their
concerns are addressed and acknowledge that their timing of application may differ from
other countries. We will closely monitor progress in preparation of toolkits to assist
developing countries in implementing the BEPS actions. We will continue to support
developing countries in strengthening their capacity. We will implement the G20 HighLevel Principles on Beneficial Ownership Transparency.
12. Considering the impact terrorist acts can have on our societies and economies, we
commit to deepen our cooperation and urge all countries to speed-up their compliance
with the relevant international standards, in particular, concerning the exchange of
information and the freezing of terrorist assets.
13. We support achieving a successful outcome of the Third International Conference on
Financing for Development, to be held in July 2015 in Addis Ababa, Ethiopia, towards the
implementation of the post-2015 development agenda.
14. We welcome progress made by international organizations to assist affected countries in
dealing with the economic impact of the Ebola crisis and enhancing risk management
capacity for future global health emergencies. In particular, we welcome the IMF
Catastrophe Containment and Relief Trust and the WBG’s progress made in developing
Pandemic Emergency Facility.
Annex: G20 Finance Ministers and Central Bank Governors Meeting 9-10 February 2015,
Istanbul
Reports Received
We welcome the delivery of the
following reports ahead of the G20
Finance Ministers and Central Bank
Governors meeting, February 2015: IMF
Surveillance Note, February 2015. OECD
Going for Growth Report, February 2015.
IMF Managing Director’s Letter and
Report to IMFC and G20, February 2015.
OECD Secretary-General Report to the
G20 Finance Ministers and Central Bank
Governors, February 2015. Financial
Reforms – Finishing the Post-Crisis
Agenda and Moving Forward, Financial
Stability Board Chair’s Letter to G20
Finance Ministers and Central Bank
Governors, February 2015. G20/OECD
Voluntary Aggregation Exercise Results
of the Checklist on Long Term
Investment Financing Strategies and
Institutional Investors, OECD Progress
Report to G20 Finance Ministers and
Central Bank Governors, February 2015.
New Approaches to SME and
Entrepreneurship Financing: Broadening
the Range of Instruments, OECD Report
to G20 Finance Ministers and Central
Bank Governors, February 2015. SME
Debt Financing Beyond Bank Lending:
the Role of Securitization, Bonds and
Private Placements, OECD Report to G20
Finance Ministers and Central Bank
Governors, February 2015. Mapping
Channels to Mobilize Institutional
Investment in Sustainable Energy, OECD
Report to G20 Finance Ministers and
Central Bank Governors, February 2015.
Issues for Further Action
We ask the IMF, OECD and World Bank
Group to work with us to identify from
our growth strategies the subset of
commitments that have the greatest
impact on growth. We ask the IMF and
OECD to participate in a seminar during
the 2nd Framework Working Group
meeting, on the modeling methodology
of our growth strategies.
We ask the OECD, together with other
IOs, to assist us in analyzing G20 countryspecific investment strategies, assisting
in providing an aggregate ambition in
fostering investment, including in
infrastructure by the Antalya Summit.
We ask the IMF and the OECD, with input
from the BIS and FSB, to assess whether
further work is needed on their
respective approaches to measures
which are both macro-prudential and
capital flow measures, taking into
account their individual mandates, by
our meeting in April.
We look forward to the final report from
the G20/OECD Task Force on Institutional
6 Investors and Long Term Financing on
the Checklist on Long Term Investment
BUSINESS FEDERATIONS NEWS - MARCH 2015 EDITION - 23
We call on the OECD to discuss the draft revisions to its corporate governance principles in
the G20/OECD High Level Roundtable on Corporate Governance to be held on 10 April 2015
in Istanbul and to submit the revised Principles together with a report on their use for SMEs’
related analysis by our September meeting for transmission to the Summit.
We look forward to the IMF’s note on asset-based financing, such as Sukuk, for infrastructure
which will inter alia cover banking regulation and supervision, Sukuk market development
and adapting monetary policy frameworks.
We ask the World Bank Group (WBG) for preparation of a voluntary toolkit for planning and
prioritization of infrastructure projects and for strengthening of methodologies to identify
and design infrastructure projects.
We call on the WBG to report on current efforts of countries to promote greater
transparency in PPP transactions, along with a voluntary toolkit for increasing public
awareness and understanding of PPP projects.
We ask the IMF to report back to us on the progress on the inclusion of the strengthened
collective action and paripassu clauses in international sovereign bonds and the Fund’s efforts
in actively promoting their use. We will discuss the progress achieved on this, with a view to
expand our understanding.
We ask the FSB, coordinating the inputs of the IMF, OECD, BIS, IOSCO and WBG to prepare a
report by our meeting in September preceded by an interim report to the June Deputies
meeting to examine the factors that shape the liability structure of corporates focusing on its
implications for financial stability.
We ask the FSB to examine with the World Bank and other relevant bodies, the extent of
withdrawal from correspondent banking and its implications for financial inclusion, as well as
possible policy responses as needed. We ask the FSB to work with CPMI, IOSCO and BCBS to
develop and report to us in April a work plan for identifying and addressing any remaining
gaps and potential financial stability risks arising relating to Central Counterparties (CCPs)
that are systemic across multiple jurisdictions and for helping to enhance their resolvability.
We ask the OECD to update their report on SMEs and Taxation, which was first published in
2009 to analyze current policy and administrative aspects of taxing SMEs. We look forward to
updates in 2015 from the Global Forum on Transparency and the Exchange of Information for
Tax Purposes about the AEoI roadmap.
We ask the Global Forum to report back by the second half of 2015 on progress made by its
members in signing the Multilateral Convention on Mutual Administrative Assistance in Tax
Matters.
We look forward to the final report from
the OECD on possible tougher incentives
and implementation processes, to deal
with those countries which fail to respect
Global Forum standards on exchange of
tax information on request.
We look forward to a report from the
IMF, WBG, OECD and UN on efficient and
effective use of tax incentives in lowincome developing countries. We look
forward to a voluntary toolkit by the
OECD, IMF, UN and WBG to assist
developing countries addressing transfer
pricing comparable data difficulties
including pricing of minerals in an
intermediate form and safe harbors.
We call on the Financial Action Task
Force (FATF) and the FATF-style regional
bodies to put a specific focus on
financing of terrorism, further coordinate
in their upcoming work and develop
guidelines to enhance transparency of
payment systems, in order to mitigate
the risk of being abused for financing for
terrorism and money laundering
purposes. We ask for a report by October
2015, on progress made and proposals to
strengthen
all
counter-terrorism
financing tools.
We ask the Climate Finance Study Group
to continue its work in line with the
proposed next steps in their 2014
Progress Report in collaboration with the
relevant IOs and report back to us at our
April meeting. We look forward to a
positive outcome at the COP21 in Paris
and we call upon all IFIs to deepen their
collaboration on climate finance.
Source: G20
PHOTO COURTESY: G20 TURKEY
Financing Strategies and Institutional Investors by our meeting in April.
BUSINESS FEDERATIONS NEWS - MARCH 2015 EDITION - 24
This newsletter is produced by the B20 Coalition
The B20 Coalition brings together leading independent business associations
from G20 economies and operates as a worldwide exchange platform
between national business communities, aiming at building consensus and
developing common positions on critical issues for enterprises.
Through this broad-based representation, the Coalition
engages policy-makers on a global scale and advocates policies that
contribute to global growth and job creation at regional and international levels.
The Coalition is instrumental, notably, in supporting the G20 process
and ensuring continuity over successive Country Presidencies.
CONTACT US
Presidency
360 Albert Street Suite 420 Ottawa, ON K1R 7X7
Secretariat
55, avenue Bosquet 75007 Paris France
Email: secretariat@b20-coalition.org
FOLLOW THE B20 COALITION
on twitter @B20Coalition
on its website at www.b20coalition.org
and join our business community on LinkedIn at B20 Coalition
B20 is a registered trademark of the B20 Coalition
Disclaimer
The BUSINESS FEDERATIONS NEWS
is an initiative of the B20 Coalition that aims to reach out
to the worldwide business federation community.
The B20 Coalition does not necessarily subscribe
to the views expressed in this newsletter
and accepts no responsibility or liability whatsoever
with regard to the information provided herein.