By Daniel Gumm
IN the wake of one of the most challenging years in business history, International Chamber of Commerce (ICC) has called on G8 and G20 leaders, met in Toronto to take action in three areas that are crucial to the future of the world economy: International trade and investment; climate change and energy; and intellectual property and innovation.

The ICC recommendations include prioritising the restoration of trade finance levels, resisting protectionism, concluding the Doha Trade Round of trade negotiations before the end of the year, a list of specific steps to be taken for effective action on climate change, and upholding commitments to curb counterfeiting and piracy.

ICC, which represents companies from all sectors in more than 120 countries, regularly provides global business views to the G8 and G20.
The London G20 Summit in 2009 pinpointed international trade as an engine of economic growth. The current ICC statement cautions leaders that lurching into economic nationalism would seriously dislocate commercial activity and have far-reaching negative effects across supply chains worldwide.

World trade, which contracted by 12.2 per cent in 2009, is forecast to rebound by 9.5% in 2010 if oil prices, major currencies and financial markets remain relatively stable.

Given the present state of the world economy, ICC warrants that completion of the Doha Round of trade negotiations is more pressing than ever before. Expressing disappointment at the lack of progress in the negotiations, the ICC statement appeals for decisive leadership to bring the Round to a successful conclusion before the end of the year.

“A deal this year would send a strongly positive signal – just when it is direly needed – that governments can work together effectively to reinforce and update a central pillar of the international economic system,” ICC said. “There are many hard-won, trade- and wealth-creating offers already on the table. These must not be lost.”

In a call for continued efforts to restore trade finance to more normal levels, the ICC statement draws attention to a recent ICC survey that reveals prospects for strong and lasting trade recovery are mixed.