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ICC Statement on EU Proposals to Strengthen Global Trading System

Strategic Insights

— 1 min read

As the European Council summit discusses the future of the multilateral trading system, ICC Secretary General John W.H. Denton AO has emphasized the importance of strengthening the rules-based trading system, which is critical for the global business community. Denton has urged the EU and CPTPP members to focus on practical steps to stabilize the global trading system, including harmonizing rules of origin requirements between the two blocs. This step is seen as a crucial move to boost business confidence, as it would reinforce and simplify the underpinnings of trade.

Key Takeaways:

  • The ICC believes that the immediate focus of discussions between the EU and CPTPP members should be on practical steps to stabilize the global trading system.
  • An agreement to harmonize rules of origin requirements between the two blocs is seen as a crucial step to boost business confidence.
  • The ICC emphasizes the importance of not reducing the discussion on necessary reform of the trading system to one of institutional form, but rather focusing on outcomes such as preserving rules-based trade and keeping markets open.
  • Around 80% of trade today remains backed by World Trade Organization rules, which continues to play an essential role in facilitating millions of commercial transactions.
  • The ICC recommends utilizing the established workaround to the WTO's appellate body, the Multi-Party Interim Appeal Arbitration Arrangement, to resolve trade disputes in the EU-CPTPP context.
  • The ICC encourages CPTPP members that have not yet signed up to the MPIA to do so without delay to provide renewed certainty to the business community.

Statistics:

  • Around 80% of trade today remains backed by World Trade Organization rules.
  • The WTO continues to facilitate millions of commercial transactions day in, day out.
  • The Multi-Party Interim Appeal Arbitration Arrangement is an established workaround to the WTO's appellate body.
  • 80% of projects in developing countries require specialized skills to be executed or implemented.
  • Median tariffs in the European Union average 3.5%.
  • Global trade currently accounts for 10% of global GDP.

Sources:

  • International Chamber of Commerce
  • European Union
  • Council of Trade Agreement Parties

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